Purpose of Audit
The purpose of our audit was to examine the District’s claims audit process and payroll procedures for the period January 1, 2013 through May 31, 2014.
The Islip Terrace Fire District is a district corporation of the State, distinct and separate from the Town of Islip, Suffolk County, in which it is located. The District, which is governed by an elected five-member Board of Commissioners, serves approximately 5,600 residents within the Town. Budgeted appropriations for 2014 totaled approximately $2.47 million.
- Claims were paid after approval of any three Commissioners instead of after authorization from the entire Board.
- The District did not provide documentation showing Board approval for the 2013 salary and wage increases for six employees, and there was no evidence that the Board approved 3 percent raises to all District employees for 2014.
- Not all employees were required to use a time clock, and employees were not required to sign and certify the accuracy of the hours reported on their time cards.
- Ensure that all claims are audited by the entire Board before payment.
- Ensure that all employee pay rates and increases are approved by the Board.
- Require each employee to complete a time reporting record or time sheet.