Determine whether Franklin-Treadwell Fire District (District) officials provided adequate oversight to ensure disbursements were authorized, supported and for appropriate District purposes.
Although District officials had some good controls over disbursements, the Board did not always provide adequate oversight of the Treasurer’s activities.
- The Board of Fire Commissioners (Board) did not properly segregate duties over disbursements or implement adequate mitigating controls.
- The Treasurer processed 55 electronic transfers and 10 cash withdrawals totaling $856,347 without Board oversight.
Aside from minor exceptions which we discussed with District officials, disbursements were authorized, supported and for appropriate District purposes. However, the failure to review disbursement activities increases the risk for unauthorized and inappropriate transactions.
- Provide additional oversight to mitigate the lack of segregation of duties.
- Establish written procedures over electronic transfers to ensure no one person can both initiate and approve electronic transfers.
District officials agreed with our recommendations and indicated they have taken corrective action.