Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Red Creek Protective Fire Company, Inc. – Controls Over Financial Activities (2014M-271)


Released: January 9, 2015 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate whether the Company’s internal controls ensure that financial activity was properly recorded and reported and that Company moneys were safeguarded for the period January 1, 2012 through December 31, 2013.

Background

The Red Creek Protective Fire Company is a volunteer organization located in the Village of Red Creek, Wayne County. The Company provides fire protection and rescue services to the Village and residents outside the Village pursuant to contracts with the Towns of Butler, Victory and Wolcott. The Company is governed by a five-member Council and reported expenses totaling approximately $33,500 for the 2013 fiscal year.

Key Findings

  • The Treasurer does not maintain a record of daily cash balances in the checking and savings accounts and cannot perform monthly reconciliations without it.
  • The Treasurer does not file required annual written financial reports to the membership or semi-annual written financial reports to the Village, as stated in the bylaws.
  • The Treasurer does not maintain a cash receipts journal. Additionally, the Treasurer maintained little to no supporting documentation of moneys collected from donations and fund-raisers.

Key Recommendations

  • Maintain running cash balances and perform a monthly review of bank reconciliations and bank statements.
  • Prepare and submit required written financial reports to the Council and Village.
  • Maintain a cash receipts journal and retain supporting documentation for all cash receipts and disbursements.

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