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Office of the State Comptroller - Local Government & School Accountability

Local Government and School Accountability

Protecting the Public’s Interest

A Tutorial on Local Government Ethics and Transparency in New York State

Module 3 - Case Studies on Conflicts of Interest

Situation 6

A fire district treasurer is an officer of an insurance agency through which the district acquires liability insurance. The treasurer’s only official function with respect to the insurance policy is to issue a check to pay the policy premiums upon order of the board of fire commissioners following the board’s audit of a claim for payment. The treasurer receives no share of the premium paid to the agency or a commission from the district’s policy. He was employed with the agency before becoming fire district treasurer. He also owns 25% of the insurance agency’s stock.

Does the treasurer have a prohibited interest in a contract with the fire district? Why or why not? Are there any other issues with which the fire district should be concerned?

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