Purpose of Audit

The purpose of our audit was to determine whether the Board provided adequate oversight of Company operations to ensure financial activity was properly recorded and reported and money was safeguarded for the period January 1, 2016 through July 26, 2017.

Background

The West Niles Fire Company is a not-for-profit organization, incorporated in 1977 and affiliated with the Three Town Fire District in Cayuga County. The Company, which has an elected five-member Board of Directors, provides fire protection services to Fire District residents. For 2016, revenues totaled $49,781 and operating expenses totaled $38,640.

Key Findings

• The Board did not develop written policies and procedures for cash receipts, cash disbursements and fundraising events or adopt a code of ethics as required by New York State General Municipal Law.
• The bylaws provided limited guidance to enable Company officials to adequately oversee financial operations.
• Company officials did not keep any supporting documentation for 16 disbursements totaling $2,415.

Key Recommendations

• Adopt financial policies and procedures for cash receipts, cash disbursements and fundraising events; ensure that all receipts are deposited intact; and establish a code of ethics.
• Revise the bylaws to include more guidance for Company officials and the membership for properly exercising their financial responsibilities.
• Ensure that all disbursements are supported by adequate documentation and audited and approved before payments are made.