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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Crittenden Volunteer Fire Department, Inc. – Internal Controls Over Financial Operations (2015M-190)


Released: December 18, 2015 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if the Board provided adequate oversight of the Department’s financial operations for the period January 1, 2014 through April 6, 2015.

Background

The Crittenden Volunteer Fire Department, Inc., is a volunteer organization that provides fire protection services for the residents of the Town of Alden in Erie County, governed by an elected five-member Board of Directors. The Department’s 2014 budget totaled $147,343.

Key Findings

  • There was no evidence that nearly $64,000 in payments were authorized by the Department’s membership.
  • The Treasurer did not perform and retain monthly bank reconciliations and did not retain custody of all Department funds as required in its bylaws.
  • The audit committee did not properly perform an audit of the Treasurer’s records.
  • The Board did not properly assign the Treasury duties or monitor the financial activities and documentation for the daily lottery account.

Key Recommendations

  • Verify that disbursements are properly authorized and have supporting documentation.
  • Prepare and retain monthly bank reconciliations.
  • Perform an audit of the Treasurer’s records every three months, including obtaining and reviewing canceled check images.
  • Develop and adopt policies and procedures regarding the daily lottery activities and ensure that only the Board-approved Treasurer manages the financial activities of the daily lottery account, retaining all ticket stubs sold and maintaining proper cash receipt records showing which tickets were sold and by whom each month.

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