Issued Date
March 08, 2019
Purpose of Audit
The purpose of our audit was to evaluate the Fire Company’s financial management for the period April 1, 2012 through November 7, 2014.
Background
The Bowmansville Volunteer Fire Association, Inc. is located in the Town of Lancaster in Erie County. The Fire Company, which has a five-member Board of Directors, provides fire protection to a portion of a fire protection district located in the Town of Lancaster. The Town paid the Company approximately $1.14 million in 2012 and 2013 for fire protection services.
Key Findings
- The Company made more than $426,000 in payments for inappropriate and questionable transactions and there is a significant risk that funds were misspent, misused or improper.
- The Board did not conduct a comprehensive audit of all the bills prior to payment as required.
- Company officials issued inherently high risk debit cards to various officers.
Key Recommendations
- Determine whether any of the misspent or possibly misused funds can be recovered.
- Ensure that the Board conducts a comprehensive review of bills and invoices before submitting them to the membership for approval.
- Adopt a written policy governing the use of credit cards.