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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Delevan Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2013M-345)


Released: February 26, 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 June 1, 2012 through October 4, 2013.

Background

The Delevan Volunteer Fire Company provides services for the Village of Delevan in Cattaraugus County. The Company is operated in accordance with its by-laws which stipulate that a Board of Trustees, consisting of five elected members. The Company’s average annual cumulative disbursements totaled approximately $201,000.

Key Findings

We found that the Board generally does not provide adequate oversight of the Company’s financial activities.

  • There was no evidence that the Board or Company membership adequately reviewed or approved all bills/claims prior to payment.
  • The Treasurer did not provide the Board with monthly or annual reports and was not responsible for receiving and maintaining custody of all Company funds.
  • The Treasurer did not prepare a budget or cash flow document to guide annual operations.

Key Recommendations

  • Review and approve all bills/claims prior to payment to ensure that all bills/claims have supporting documentation and are for legitimate Company purposes.
  • Prepare and provide written monthly reports including all receipts and disbursements to the Board. These reports should be recorded in the Company minutes. Receive and maintain custody of all Company funds.
  • Develop a budget or cash flow document to guide annual operations.

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