Purpose of Audit

The purpose of our audit was to assess the adequacy of the Treasurer’s records and reports and evaluate the internal controls over collections and disbursements for the period April 1, 2015 through August 31, 2016.

Background

The Chestertown Volunteer Fire Company provides fire protection services for the Town of Chester, Warren County. The Company is governed by a five-member Board, elected by Company members. For the 2015-16 fiscal year, the Company’s revenues totaled $47,532 and expenditures totaled $39,209.

Key Findings

• The Treasurer did not maintain accurate financial records and reports.
• Bank reconciliations were not prepared.
• Crucial financial reports were inaccurate or not prepared and submitted to the Board or to the Office of the State Comptroller.
• The Board did not establish and implement adequate internal controls over the collections and disbursements processes.
• Not all checks were signed by both the President and Treasurer.

Key Recommendations

• Maintain and report accurate, complete and up-to-date accounting records.
• Perform monthly bank reconciliations for all Company bank accounts.
• Prepare and provide accurate monthly and annual reports to the Board and file accurate annual reports with OSC in a timely manner.
• Establish written policies and procedures to provide adequate guidance and improve internal controls over collections and disbursements.
• Ensure that all checks are signed by the Company President and Treasurer prior to payment.