[read complete report - pdf]

Audit Objective

Determine whether the Plainville Fire District (District) Board of Fire Commissioners (Board) provided adequate oversight of the District’s financial operations.

Key Findings

The Board did not provide adequate oversight of the District’s financial operations and exceeded its authority by passing a resolution that allowed the District Treasurer (Treasurer) to pay all recurring expenditures without the Board’s prior review or approval. The Board did not:

• Adopt transparent or realistic budgets.
  • Budgets underestimated transfers to reserves and overestimated appropriations.
• Adopt a fund balance policy or develop multiyear financial and capital plans.
• Ensure the Treasurer filed annual financial reports, for 2018 through 2020.
• Ensure the Treasurer’s records were audited each year, as required.
• Audit and approve all claims prior to payment when required.
  • We tested claims totaling $289,700 and found claims totaling $41,300 were improperly paid prior to Board audit and approval.

Key Recommendations

• Adopt realistic budgets and a fund balance policy and develop multiyear financial and capital plans.
• Ensure AUDs are filed on time.
• Audit and approve claims prior to payment when required.

District officials agreed with our recommendations and indicated they have begun and will continue to take corrective action.