Purpose of Audit

The purpose of our audit was to determine whether Department officials ensured that financial activity was properly recorded and reported and that Department moneys were safeguarded for the period January 1, 2016 through June 19, 2017.

Background

The Pine City Volunteer Fire Department, Inc. provides fire protection services for the Town of Southport, in Chemung County. The Department is governed by its officers and a five-member Board of Directors. For 2016, Department revenues were $57,670 and expenses were $44,153.

Key Findings

• The Treasurer’s duties were not segregated as he made all deposits, performed all recordkeeping functions and prepared bank reconciliations without independent oversight.
• Department officials have not adopted written financial policies or procedures addressing cash receipts, disbursements, claims processing or fundraising accountability.
• Individual claims were not reviewed prior to payment approval.
• The Department does not have a code of ethics as required by statute.

Key Recommendations

• Amend the bylaws to provide for adequate segregation of duties and oversight of the Treasurer’s position.
• Develop and adopt written financial policies and procedures addressing cash receipts, disbursements, claims processing and fundraising accountability.
• Audit all claims prior to approval and ensure detailed approval is documented in the Board minutes.
• Adopt a code of ethics that sets forth guidance for Department officers and the membership regarding expected standards of conduct.