[read complete report – pdf]
Determine whether the Glen Aubrey Fire Company, Inc. (Company) Board of Directors (Board) ensured compliance with fire protection contracts (contracts) and lease agreements.
The Company Board did not ensure compliance with contracts or enforce the lease agreement’s terms and conditions. As a result, there is an increased risk that funds could be subject to loss, theft or misappropriation.
The Board did not:
- Develop written financial policies or procedures.
- Properly prepare a budget and present it to the Towns or audit the Company’s records.
- Regularly review and approve financial transactions.
- Charge service fees and interest for late payments associated with the lease agreement.
- Ensure compliance with the terms and conditions of all contracts and lease agreements.
- Develop written financial policies and procedures.
- Properly prepare budgets and present them to the membership and the Towns annually.
- Review and approve financial transactions on a regular basis and have them audited annually.
- Charge the appropriate service fees and interest on late lease payments.
Company officials disagreed with certain findings in our report but indicated they plan to initiate corrective action. Appendix B includes our comments on issues Company officials raised in their response.