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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Allegany Engine Company, Inc. – Internal Controls Over Financial Activities (2014M-176)


Released: January 16, 2015 -- [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 28, 2014.

Background

The Allegany Engine Company, Inc. is located in the Town of Allegany, Cattaraugus County. The Company, which is governed by an eight-member Executive Committee/Fire Advisory Board per its bylaws, provides fire protection services within the Town and mutual aid to surrounding areas. Disbursements during 2013 totaled $353,614.

Key Findings

  • The Treasurer did not offer a legitimate Company purpose for $7,123 in cash withdrawals.
  • The President did not appoint a finance committee to review and approve the Treasurer’s records as required by the by-laws.
  • The Treasurer did not submit written monthly and annual financial reports to the Board.
  • The Treasurer did not record all fundraising receipts and the Board failed to properly oversee fundraising activities.

Key Recommendations

  • Investigate all withdrawals made by the Treasurer and determine the status of the $7,123 in questionable cash withdrawals.
  • Appoint a finance committee to review and approve all payments and to audit the Treasurer’s books at least annually.
  • Provide written monthly and annual financial reports to the Board.
  • Develop and implement procedures for Company officials to follow during and after fundraising events to ensure that all funds are properly accounted for and recorded.

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