Purpose of Audit

The purpose of our audit was to evaluate the Department’s internal controls over financial operations for the period January 1, 2012 through March 25, 2014.

Background

The Oakfield Fire Department is located in the Village of Oakfield in Genesee County. The Department, which is governed by an eleven-member Board of Directors, provides fire protection services to Village residents. Expenses for the 2013 fiscal year totaled approximately $56,500.

Key Findings

• The Board failed to establish adequate internal controls or provide oversight of the Department’s financial operations, which resulted in the misuse of funds and unaccounted-for raffle proceeds.
• The Board’s audit of claims was ineffective.
• The Board did not review bank statements and canceled checks and did conduct an annual audit of the Treasurer’s books and records.
• The summary of payments report prepared by the Treasurer did not always include all payments made from Department accounts.

Key Recommendations

• Investigate the apparent misuse of Department funds.
• Audit and approve claims prior to payment and ensure that all disbursements are supported by vouchers.
• Review bank statements and canceled checks monthly and audit the Treasurer’s records annually.
• Maintain accurate, complete and up-to-date accounting records that document all cash receipt and disbursement transactions.