Determine whether the South Butler Fire Department, Inc. (Department) officers and members provided adequate financial oversight.
Department officers and members did not provide adequate financial oversight. As a result, officers and members were not in a position to monitor and assess the Department’s financial status. We found:
- Adequate bylaws and financial policies and procedures were not adopted.
- Existing bylaw provisions were not enforced.
- Adequate accounting and fundraising records were not maintained.
- Petty cash funds were not properly overseen or accounted for.
- $65,658 was disbursed without any review or approval and the President routinely signed blank checks.
- The Treasurer’s books and records were not annually audited as required.
- Required State and Federal filings were not completed, and annual budgets were not prepared.
- Adopt adequate bylaws and financial policies.
- Comply with existing bylaw provisions.
- Annually audit the Treasurer’s books and records and prepare and submit all required and necessary reports.
Department officers generally agreed with our recommendations and indicated they have begun and will continue to take corrective action.