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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Rescue Fire Company, Inc. – Unaccounted-For Bar Receipts (2012M-250)


Released: April 19, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the Company’s financial operations for the period January 1, 2010, to January 24, 2013.

Background

The Rescue Fire Company is located in the City of North Tonawanda, in Niagara County. The Board of Directors consists of the President, Vice President, Recording Secretary, Financial Secretary, Treasurer, Sergeant-at-Arms and five Trustees. The Company’s expenses totaled $148,073 for the 2011 fiscal year.

Key Findings

On August 21, 2012, we discussed with Company officials the deficiencies related to the bar cash receipts. According to Company officials, the bar committee chairman produced $10,505 in cash at the Company meeting held that evening. Company officials told us that over the last several years, the bar committee chairman was able to divert cash from the cash register in the bar without their knowledge.

  • All four bar committee members had unmonitored access to the safe where the cash from bar operations was stored. The Board did not require bar committee members to have a second member present while conducting cash counts or adding or removing cash from the safe.
  • Bar committee members routinely paid for bar-related purchases with undeposited cash generated from bar sales.
  • We compared bar cash register tape totals to daily cash reports and bank deposits. From January 1, 2010 to January 22, 2013, bar cash register tape totals exceeded corresponding bank deposits by $41,359. After deducting $14,708 of purchases made with cash from bar sales and $2,897 in bar cash on hand as of January 24, 2013, $23,754 in cash remained unaccounted-for.

Key Recommendations

  • Require bar committee members to have a second member present while conducting cash counts and adding or removing cash from the safe.
  • Review and approve invoices representing the purchase of bar supplies prior to the Treasurer making payment.
  • Conduct an audit of bar financial activity and report its findings to the Board. This audit should include comparing bar cash register tape totals and daily cash reports to the amount deposited.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236