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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Virgil Fire District – Internal Controls Over Financial Operations (2012M-329)


Released: February 7, 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 September 23, 2013.

Background

The Virgil Fire District is a district corporation of the State, distinct and separate from the Town of Virgil, and located in Cortland County. The Board of Fire Commissioners consists of five elected members. The District’s general fund budget totaled $215,255 for the 2013 fiscal year.

Key Findings

  • The Board does not provide adequate oversight of District financial activities. Although the Board has adopted procurement, investment and code of ethics policies, it did not ensure there were proper controls over cash disbursements or ensure the Treasurer was performing her duties properly.
  • The Board reviews the claims at biweekly Board meetings. However, because it is not reviewing monthly bank statements or bank reconciliations, the Board cannot verify if it is approving all claims for payment. In addition, it cannot determine whether there are any discrepancies between bank and book cash balances.
  • The Treasurer has not filed the annual update document with the State Comptroller’s Office for the years 2009, 2010, 2011 and 2012.

Key Recommendations

  • Establish proper disbursement procedures including procedures to ensure that all disbursements have proper supporting documentation before payments are approved.
  • Review the Treasurer’s bank reconciliations to verify that all disbursements are proper District charges and to verify the District’s cash balances.
  • File the delinquent AUDs with the Office of the State Comptroller and file future AUDs in a timely manner.

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