Purpose of Audit

The purpose of our audit was to evaluate the Department’s internal controls over selected financial activities for the period January 1, 2011 through December 19, 2013.

Background

The Clinton Volunteer Fire Department, Inc. is a tax-exempt, not-for-profit corporation that provides fire protection services to the East Clinton Fire District in the Town of Clinton, Dutchess County. The Department has 43 volunteer members and the Executive Committee is responsible for oversight and financial management. From January 1, 2011 through December 31, 2013, the Department received approximately $83,000 in revenue.

Key Findings

• The Executive Committee did not establish policies and procedures for financial transactions.
• The Treasurer did not keep a complete and accurate account of all receipts and disbursements, did not prepare an annual report and provided monthly reports that did not include financial information for all of the Department’s units.
• The Treasurer did not file IRS Form 990 to the United States Treasury Department, as required by May 15 each year, or an annual report relating to the use of fire insurance premium tax funds from out-of-state insurers with OSC, as required by March 1 each year.

Key Recommendations

• Establish comprehensive written policies and procedures for controls over financial transactions and recordkeeping.
• Reconcile the Department’s financial records and prepare a complete and accurate written report each month and annually.
• Complete and submit required filings to the IRS and to OSC.