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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Afton Fire Company Emergency Squad – Internal Controls Over Financial Operations (2013M-275)


Released: January 3, 2014 -- [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, 2011 to August 6, 2013.

Background

The Afton Hose Company Emergency Squad, Inc. is a volunteer organization located in the Village of Afton, Chenango County. The Company provides fire protection and emergency services for the Town of Afton. The Company’s Oversight Board comprises seven elected members.

Key Findings

  • The Board is not providing adequate oversight to ensure the procedures in the constitution and bylaws are being followed, and did not establish a code of ethics.
  • Although the Administrative Board authorizes each claim for payment presented to it, through a resolution noted in the minutes, there is no process in place to verify that all claims approved by the Administrative Board are properly paid, or that the Administrative Board is presented with and approves all the claims that are actually paid.
  • Neither the Board nor the Administrative Board reviews monthly bank statements or require the Treasurer to perform bank reconciliations.
  • The Treasurer’s report is usually verbally communicated as the Treasurer is not timely with recording financial information.
  • The Treasurer’s books are consistently reviewed by a disinterested third party who reported that everything was in good order; however, this review was not an effective audit as it failed to identify the weaknesses and discrepancies we found in our audit.

Key Recommendations

  • Modify the current policies and procedures to establish a code of ethics, ensure that cash receipts are documented and accounted for properly, and require the Treasurer to perform monthly bank reconciliations for all accounts and provide them, along with bank statements, to the Board for its review.
  • Present all claims to the Administrative Board for its approval before payment.
  • Prepare monthly written reports which reflect the most up-to date financial information.
  • Stop contracting with its current third party to review the Treasurer’s records and provide for a proper annual audit.

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