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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

South Byron Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2013M-155)


Released: August 30, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine whether Company controls are adequate to ensure that financial activity is properly recorded and reported and that Company moneys are safeguarded for the period January 1, 2012, to March 31, 2013.

Background

The South Byron Volunteer Fire Company, Inc. is located in the Town of Byron, in Genesee County. The Company is governed by a five-member Board of Directors. The Company’s budget totaled $109,400 for the 2013 fiscal year.

Key Finding

  • The Company has established a system of internal controls with appropriate procedures to ensure that financial activity is properly recorded and that Company moneys are safeguarded, except for controls over the use of credit cards. The Company does not have a formal policy governing the use of credit cards. Company officials do not ensure that invoices for all credit card purchases are retained and attached to the credit card statement. We reviewed all 264 payments totaling $122,007 made by the Company in 2012, including $7,250 for credit card purchases. We found that claims for credit card purchases totaling $1,570, or 22 percent of the 2012 credit card purchases, did not have adequate documentation on file.

Key Recommendations

  • Adopt and maintain a policy governing the use of Company credit cards.
  • Ensure that sufficient supporting documentation is available for all credit card purchases prior to approving them for payment.

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