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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Richmond Fire District – Internal Controls Over Financial Operations (2013M-357)


Released: February 14, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine whether District controls are adequate to ensure that financial activity is properly recorded and reported and that District moneys are safeguarded for the period January 1, 2012 through October 7, 2013.

Background

The Richmond Fire District, located in Ontario County, is a district corporation of the State, distinct and separate from the Town Richmond. The Board of Fire Commissioners consists of five elected members. The District’s general fund budget totaled $530,523 for the 2013 fiscal year.

Key Findings

  • The District’s financial position has deteriorated over the last three years because the Board has not adequately budgeted for expenditures. Specifically, the District’s fund balance has declined 74 percent from approximately $120,000 in 2010 to $30,000 in 2012 and available cash decreased from $131,000 to $24,000, which was 4 percent of 2013 appropriations. These declines were largely due to unbudgeted and unforeseen repairs to the District’s equipment.
  • The Treasurer submitted budget-to-actual reports to the Board on a quarterly basis.
  • The Board has not developed any long-term financial or capital plans and only receives financial reports that detail the adopted budget and year-to-date revenues and expenditures on a quarterly basis.
  • The Board has not established written policies and procedures to govern financial operations including: investments, cash receipts, capital planning and information technology.

Key Recommendations

  • Provide the Board with monthly budget-to-actual reports and cash flow statements.
  • Develop multiyear financial plans and consider the use of reserve funds.
  • Adopt comprehensive policies and procedures for investments, cash receipts, capital planning and information technology. Ensure that these policies are distributed to District personnel.

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