Determine whether the Stamford-Harpersfield-Kortright Fire District (District) Board of Fire Commissioners (Board) established adequate controls over financial activities to safeguard assets.
The Board did not establish adequate controls or provide adequate fiscal oversight of the Treasurer. As a result, District assets were not safeguarded.
The Board did not:
- Adequately monitor fiscal operations,
- Properly document disbursement approvals,
- Conduct required audits or
- Adopt a procurement policy, investment policy or code of ethics, as required.
Although the Treasurer’s financial records and reports we reviewed were accurate and financial transactions were appropriate and properly accounted for, the Treasurer performed all financial duties including receiving and disbursing cash, signing District checks and maintaining the accounting records with no oversight.
- Establish adequate oversight controls including reviewing canceled check images, auditing claims on a monthly basis and annually auditing the Treasurer’s records.
- Adopt a procurement policy, investment policy and code of ethics.
District officials generally agreed with our recommendations and indicated they plan to initiate corrective action.