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NYS Comptroller


Audits of Local Governments and School Districts

C.H. Evans Hook and Ladder Company No. 3 – Missing Funds (2013M-194)

Released: November 1, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the internal controls of the Company’s financial operations for the period October 1, 2009, to January 2, 2013.


The C. H. Evans Hook and Ladder Fire Company No. 3 is one of four fire companies that collectively make up the City of Hudson Fire Department. The Company is governed by a governing body, which includes a President, Vice-President, Secretary, and Treasurer. The City provides the fire companies with fire equipment, safety gear, and a fire house, and funds the Company’s operations.

Key Findings

  • The President misused the Company’s debit card and apparently misappropriated nearly $34,000 of the Company’s funds during the period October 2009 to December 2012. In addition, during this period, the President made additional questionable purchases and cash withdrawals totaling more than $7,500.
  • The Company’s governing body did not adequately safeguard the Company’s money. The governing body did not develop and implement internal controls over its cash disbursement and receipt functions and did not ensure the Company’s by-laws were implemented.
  • The Treasurer did not maintain reports of the Company’s financial activities, report to the governing body, or prepare monthly bank reconciliations.

Key Recommendations

  • Seek reimbursement for the misappropriated funds.
  • Develop internal controls over the cash disbursement and receipt functions to ensure the implementation of the Company’s by-laws.
  • Provide the Treasurer with training to properly perform the duties.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email:
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236