Purpose of Audit

The purpose of our audit was to determine whether controls were adequate to ensure that financial activity was properly recorded and reported and that Company money was safeguarded for the period April 1, 2013 through November 24, 2014.

Background

The Olean Volunteer Fire Company No. 1, Inc. is located in the Town of Olean, Cattaraugus County, and provides fire protection within an area of the Town. The Board of Directors, which comprises five elected members, is responsible for the Company’s overall financial management. During 2014, the Company received approximately $43,400 in revenues and incurred expenses of approximately $19,700.

Key Findings

• The Treasurer did not maintain appropriate records or provide the Board with monthly financial reports.
• Board minutes were missing from 14 of the 20 meetings held during out audit period.
• The Board does not routinely review bills prior to disbursement.
• The Company did not maintain records showing how many people bought tickets or attended all fund-raising events.

Key Recommendations

• Require that the Treasurer maintain detailed financial records and provide monthly financial information.
• Ensure that Board minutes are complete and remain in the Company’s custody.
• Review and approve bills prior to payment.
• Ensure that tickets sold at each fund-raising event are properly accounted for.