Determine whether the Brighton Fire Department, Inc. (Department) Board of Directors (Board) provided adequate oversight of financial operations.
The Board did not provide adequate oversight of financial operations.
- The Department lacked detailed financial procedures and the Board did not enforce compliance with existing bylaw and policy provisions.
- The Board did not present the statutorily-required annual Directors’ report or any interim financial information to the membership.
- Of 220 disbursements reviewed totaling $545,658, 155 (70 percent) totaling $190,160 did not have documented approval on the claim and 93 (42 percent) totaling $92,605 did not have adequate supporting documentation.
- Amend the bylaws or adopt sufficient supplemental written financial policies and enforce compliance with all bylaw and policy provisions.
- Ensure that annual and monthly financial reports are provided to the Board and membership and there is an independent review of bank statements and reconciliations.
- Ensure all claims are audited, and have documented approval prior to payment and adequate supporting documentation.
Department officers generally agreed with our findings and indicated they have begun to take corrective action.