Purpose of Audit

The purpose of our audit was to determine if the Treasurer properly deposited receipts and if disbursements were for proper Company purposes for the period March 1, 2006 through January 31, 2015.

Background

The Spencer Volunteer Fire Company is located in the Village of Spencer, Tioga County, and is associated with the Village Fire Department. The Company, which provides fire protection for the Village and the Town of Spencer, is governed by a three-member Board of Trustees. In 2014, the Company received $29,400 in receipts and made $11,900 in disbursements.

Key Findings

• The Board did not review and the Committee (composed of the President and three Company members) did not audit the Treasurer’s records or bank statements for the majority of our audit period.
• The Treasurer misappropriated County funds over a nine-year period, pleaded guilty to grand larceny in the fourth degree, was sentenced to 90 days in jail and five years of probation and was ordered to pay restitution.
• The Board did not conduct a proper audit of claims in accordance with Company bylaws.

Key Recommendations

• Ensure that a yearly review and audit of the Treasurer’s records is performed and documented.
• Coordinate with applicable County departments to confirm that restitution is received.
• Ensure that all claims against the Company area audited, approved and supported.