Mount Sinai Fire District - Financial Condition and Price Quotations for Purchases (2019M-83)

Issued Date
August 23, 2019

[read complete report - pdf]

Audit Objective

Determine if the Board and District officials effectively managed the District’s financial condition.

Determine if the District is seeking competition for purchases that are under the bidding threshold.

Key Findings

  • The Board overestimated appropriations and transferred nearly the entire operating surplus to the reserve funds, leaving the District with virtually no unrestricted fund balance.
  • District officials did not always seek quotations for purchases under the bidding threshold.

Key Recommendations

  • Adopt financial plans for the maintenance of a reasonable level of fund balance, the funding and use of reserves and a multiyear financial plan.
  • Adopt budgets that include reasonable estimates for appropriations.
  • Ensure compliance with the District’s procurement policy regarding the use of verbal and written quotations.

District officials generally agreed with our recommendations and indicated they were initiating corrective action.