Purpose of Audit
The purpose of our audit was to evaluate the Board’s oversight over the Company’s financial activities for the period January 1, 2013 through February 28, 2014.
The Hughsonville Fire Company is a volunteer organization located in the Town of Wappinger in Dutchess County. The Company, which is governed by a three-member Board of Trustees, provides volunteer manpower to operate the fire equipment and fire house owned by the Hughsonville Fire District. Gross receipts and disbursements for the fiscal year ended December 31, 2013 totaled $60,520 and $56,237, respectively.
- The Board has not developed adequate policies and procedures for the procurement of goods and services, credit card use, cash receipts, cash disbursements or the audit of claims.
- The Treasurer does not reconcile bank accounts in a timely manner or issue press-numbered duplicate receipts.
- Fund-raising deposits were less than collections in March 2013, disbursements totaling $10,515 had no supporting documentation to identify their purpose and checks totaling $52,976 had no evidence of approval of Board or Company members.
- Adopt and enforce written policies and procedures that establish a strong system of internal controls over the Company’s financial operations. This should include compensating controls over the Treasurer’s unsegregated duties, such as regular reviews of financial records and reports, bank statements and reconciliations.
- Prepare and document monthly bank reconciliations in a timely manner and issue duplicate press-numbered receipts.
- Establish internal controls to ensure all fund-raising moneys collected are properly recorded and deposited. Also, implement procedures to address the review of claims and outline the documentation that needs to accompany a purchase to ensure that all disbursements are supported with documentation and approved before payments are made.