[read complete report – pdf]

Audit Objective

Determine whether the West Webster Fire District (District) Board of Fire Commissioners (Board) effectively managed fund balance.

Key Findings

The Board did not effectively manage fund balance or ensure that the Treasurer provided adequate and accurate financial reports. As a result, the Board was not transparent with taxpayers and levied more taxes than needed to fund operations. We found:

• As of December 31, 2021, recalculated unrestricted fund balance was $1.8 million, which was unreasonable and sufficient to cover 50 percent of the 2022 appropriations.
• The Board did not adopt realistic budgets. For example, revenues were underestimated by nearly $1.2 million (11 percent) for 2019 through 2021 and none of the $150,400 of appropriated fund balance was used.
• The District did not have a written multiyear financial plan and comprehensive capital plan, which inhibited the Board and District officials from effectively managing finances and addressing future operating and capital needs.

Key Recommendations

• Reduce unrestricted fund balance and use excess funds in a manner more beneficial to taxpayers.
• Adopt realistic budgets and appropriate fund balance only when needed to fund operations.
• Adopt a written fund balance policy and comprehensive written financial and capital plans.

District officials generally agreed with our recommendations and indicated that they initiated corrective action. Appendix B includes our comment on the District’s response letter.