Hubbardsville Fire District - Board Oversight (2018M-107)

Issued Date
August 31, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board provided adequate oversight of the District’s financial operations and fuel inventories.

Key Findings

  • The Board did not:
    • Annually audit the Treasurer’s books and records or request to review budget-to-actual reports and bank statements.
    • Properly establish its capital reserve fund and obtain voter approval prior to issuing $150,000 in debt.
    • Require perpetual diesel fuel inventory records, leading to unaccounted for fuel.
  • The Treasurer did not maintain subsidiary revenue and expenditure accounts or perform bank reconciliations.

Key Recommendations

  • Provide oversight of the Treasurer’s duties and annually audit the Treasurer’s books and records.
  • Officially establish the capital reserve and obtain voter approval prior to issuing debt.
  • Maintain perpetual inventory records and reconcile to physical inventories on hand.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.