Determine whether the East Meredith Rural Fire District’s (District) Board of Fire Commissioners (Board) established adequate controls over cash receipts and disbursements.
The Board did not establish adequate controls over cash receipts and disbursements. The Board did not:
- Segregate duties or provide additional oversight over receipts and disbursements to ensure the Treasurer accurately recorded all transactions in a timely manner.
- Audit and approve 25 claims totaling $15,817 before payment.
- Maintain adequate supporting documentation for three disbursements totaling $11,478.
- Audit the Treasurer’s records.
While we found that financial transactions were appropriate and properly accounted for, without proper controls, there is a risk that disbursements will not be made for proper purposes and money collected will not be deposited.
- Implement controls to better monitor the Treasurer’s duties.
- Ensure all claims are audited and approved before payment and contain adequate supporting documentation before payment.
District officials agreed with our recommendations and indicated that they have initiated or planned to Initiate corrective action.