Purpose of Audit

The purpose of our audit was to evaluate internal controls over selected financial activities of the Department and Companies for the period January 1, 2013 through April 23, 2014.

Background

The Sidney Fire Department is a volunteer organization located in the Village of Sidney, Delaware County, which comprises three Fire Companies. The Department, which provides fire protection services to the Village and to the Towns of Sidney and Unadilla, is governed by a nine-member Board of Directors. The Department and Companies disbursed approximately $144,000 during the audit period.

Key Findings

• The Board did not implement internal controls to ensure that cash disbursements and receipts were properly accounted for.
• The Companies’ Trustees did not use bank statements while performing required annual audits.
• The Department President pre-signed some checks.

Key Recommendations

• Ensure that the bylaws are clear and address proper internal controls for cash disbursements and receipts and that documentation is maintained for all disbursements and cash receipts.
• Ensure that the Companies’ Trustees perform a through audit of the Treasurers’ records and provide a written report to the Board.
• Discontinue the practice of pre-signing checks.