Determine if the Sea Breeze Volunteer Fire Association Inc. (Association) Board provided adequate oversight of financial operations.
The lack of any meaningful Board oversight resulted in noncompliance with the majority of applicable laws, bylaw provisions and good business practices. The Board did not:
- Enforce or adopt adequate bylaws.
- Develop or approve operating budgets or ensure proper accounting or financial records were prepared or maintained. As a result: fundraising records were not maintained; cash receipts were not properly accounted for or safeguarded; the Treasurer managed only one of the nine bank accounts; the Chief had complete control of one account and the President controlled seven accounts.
- Audit – or delegate someone to audit – and approve disbursements. For example, 380 disbursements totaling $120,217 had no supporting documentation, including all 48 Chief’s account disbursements totaling $22,121.
As a result, the lack of suitable records limited our ability to determine if funds were accounted for or used for proper business purposes.
- Amend the bylaws or adopt separate written financial policies and procedures and monitor and enforce compliance.
Association officers generally agreed with our findings and recommendations and indicated they have begun to take corrective action.