Purpose of Audit

The purpose of our audit was to evaluate the Board’s oversight of the Company’s financial activities for the period January 1, 2012 through February 28, 2014.

Background

The Wallkill Hook, Ladder and Hose Company provides fire protection services for a portion of the Town of Shawangunk in Ulster County. The Company is governed by an elected five-member Board of Directors. Revenue for the 2013 fiscal year totaled approximately $89,750.

Key Findings

• The Board has not established policies and procedures for cash receipts, cash disbursements, fundraising or the audit of claims.
• Bingo operations did not follow applicable regulations.
• Fundraising reports were not always complete and did not contain sufficient information to verify proceeds.

Key Recommendations

• Adopt and enforce written policies and procedures that establish a strong system of internal controls over the Company’s financial operations. This should include compensating controls over the Treasurer’s unsegregated duties, such as regular reviews of financial records and reports, bank statements and reconciliations. In addition, the Board should conduct annual audits of the Treasurer’s records.
• Develop procedures to ensure compliance with State regulations for bingo operations.
• Establish procedures for each fundraiser which allows the Board to verify the amounts received, such as tracking attendance at breakfasts, and develop fundraiser forms which require duplicate signatures verifying startup money and all money received.