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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Dayton Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2012M-337)


Released: February 12, 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, 2012 through October 21, 2013.

Background

The Dayton Volunteer Fire Company, Inc. is located in the Town Dayton in Cattaraugus County. The Company is governed by an elected President, Treasurer and Secretary. Company expenses for January 1, 2012 to October 8, 2013 included the following major categories: debt ($55,175), fund raising costs ($13,986), miscellaneous ($2,282), banquet ($1,364), supplies ($905), deposit returns ($475).

Key Findings

The Officers generally provide adequate oversight of Company financial activities. The Treasurer prepares monthly reports and the President reviews the Treasurer’s records on an annual basis.

  • Although Company minutes include motions to "pay all bills," it is unclear what bills are being approved for payment.
  • The majority of payments made by the Treasurer were paid with cash from the petty cash fund, leaving no audit trail. Due to these deficiencies, we reviewed all 162 disbursements from the petty cash fund totaling approximately $14,000 from January 1, 2012 through October 8, 2013. Although we found that disbursements generally had receipts, recorded cash payments for 18 disbursements, totaling $574, did not have receipts. However, the Treasurer was able to identify the purpose for each payment as a proper Company purpose.

Key Recommendations

  • List in the Company minutes, the bills approved for payment by the membership, indicating the vendor and dollar amount.
  • Approve bills for payment that have proper supporting documentation. Require that bills be paid by check.

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