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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

West Glens Falls Fire Company No. 1 – Financial Operations (2013M-383)


Released: April 11, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to assess controls to ensure that financial activity is properly recorded and that Company moneys are safeguarded for the period January 1, 2012 through September 30, 2013.

Background

The West Glens Falls Volunteer Fire Company #1 is a volunteer organization located in the Town of Queensbury in Warren County. The Board of Directors, which is responsible for the Company’s overall general and financial affairs, consists of the President and seven elected Directors. As of the end of the 2012 fiscal year, the Company had received approximately $618,000 in revenue, including $535,547 from the Town of Queensbury and $15,819 in foreign fire insurance, and had disbursed approximately $687,000.

The Company is affiliated with the Fire Fighters of West Glens Falls Association (Association), which is a separate not-for-profit corporation operated in accordance with its own by-laws.

Key Findings

  • The Board has not adopted written financial policies and procedures over cash receipts and disbursements and did not provide adequate oversight of the Treasurer’s work.
  • The Board did not ensure that the Treasurer prepared and submitted the required Company annual report, or filed the annual foreign fire insurance report in a timely manner.
  • The Company’s controls over claims processing were weak. Supporting documentation did not exist for all Company disbursements.

Key Recommendations

  • Adopt financial policies to assist in safeguarding Company assets, such as policies for cash receipts and disbursements and fundraising accountability.
  • Ensure the Treasurer files the annual foreign fire insurance report in a timely manner and submits an annual financial report of the Company’s financial activities to the Board at the annual meeting.
  • Ensure sufficient documentation, such as receipts and invoices, are available to conduct a proper audit of claims. After auditing the claims, the Board should provide evidence that all claims were audited by either signing an abstract or a motion in the monthly Board meeting minutes that specifies the claims approved for payment, including claims numbers and dollar amounts.

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