Determine whether City of Hornell (City) officials provided oversight of foreign fire insurance (FFI) tax money.
Officials did not adopt policies and procedures guiding the handling of FFI tax money and provide oversight to ensure accurate records were maintained, and adequate supporting documentation and approvals were obtained.
- The Chamberlain did not maintain custody of the FFI tax money.
- The Fire Chief was solely responsible for disbursing, recording and reporting all transactions related to FFI tax money.
- The Fire Chief maintained inaccurate accounting records and reports and expenditures totaling $42,410 lacked support.
- FFI disbursements were not approved by Department members before payments were made.
- Consider developing comprehensive policies and procedures related to FFI tax money.
- Ensure the Chamberlain adequately maintains custody of the FFI tax money, and expenditures are adequately supported and approved before payment.
City officials generally agreed with our recommendations and indicated they planned to initiate corrective action.