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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Lily Dale Volunteer Fire Company – Internal Controls Over Financial Operations (2013M-336)


Released: January 31, 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 April 1, 2012 through October 10, 2013.

Background

The Company is located in the Town of Pomfret, in Chautauqua County. The Company is operated in accordance with its by-laws, which stipulate that an elected Executive Committee, consisting of a President, Vice President, Treasurer, Secretary, Chief, Emergency Management Services Captain and three Directors, is responsible for the Company’s overall financial management. During the fiscal year April 1, 2012 through March 31, 2013, the Company deposited approximately $34,000 into its bank accounts.

Key Findings

  • The Executive Committee generally does not provide adequate oversight of Company financial activities because the Treasurer does not provide it with adequate monthly or annual reports. The Treasurer was unable to provide us monthly reports for 10 of the 18 months in our audit period.
  • We reviewed all 226 disbursements totaling $54,054 made during the period April 1, 2012 through September 17, 2013. While these disbursements appeared to be for legitimate Company purposes, 198 disbursements totaling $49,682 were not recorded in the Treasurer’s report or Company minutes as having been authorized for payment.
  • The Treasurer did not include $5,533 of receipts in his monthly reports. For example, $4,045 for fundraising and soda sales was deposited on July 26, 2013, but not included in the July monthly report. The Treasurer also does not prepare bank reconciliations.

Key Recommendations

  • Ensure that the Treasurer prepares the required written monthly and annual reports.
  • Review and authorize all claims prior to payment to ensure that they have supporting documentation and are for legitimate Company purposes.
  • The Treasurer should prepare and maintain complete and accurate records, including preparing monthly bank reconciliations.

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