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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Limestone Volunteer Firemen, Inc. – Controls Over Financial Activities (2014M-219)


Released: November 21, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine whether Company controls were adequate to ensure that financial activity was properly recorded and reported and that Company money was safeguarded for the period January 1, 2013 through April 30, 2014.

Background

The Limestone Volunteer Firemen, Inc. fire company is located in the Town of Carrollton within the Carrollton Joint Fire District, in Cattaraugus County. The Company, which is governed by a seven-member Board of Directors per its bylaws, provides fire protection services to Town residents and mutual aid to surrounding areas. Disbursements during 2013 totaled approximately $215,000.

Key Findings

  • The Board did not develop and implement adequate internal controls over the Company’s cash disbursement and receipt functions, and we found approximately $38,000 in unsupported disbursements that may not have been for appropriate Company purposes.
  • The Board did not cause the Company’s financial records to be audited annually.
  • The Board did not review bills or approve disbursements prior to payment.
  • Company officials did not maintain accurate records to show how much money was collected from the 2013 Dice Run, or the total net proceeds the Company Treasurer should have received.

Key Recommendations

  • Monitor the Company Treasurer and require that monthly financial information be provided and investigate all transactions conducted by the Club Treasurer.
  • Ensure that the Company Treasurer’s financial records are audited annually.
  • Review and approve bills prior to payment and ensure that each bill has appropriate supporting documentation.
  • Maintain detailed financial records for each fund-raising event.

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