Issued Date
October 08, 2021
Audit Objective
Determine whether the Kirkwood Fire Company District No. 1 Inc. (Company) officials established adequate controls over collections and disbursements.
Key Findings
The Board did not fulfill its fiduciary responsibilities to ensure money was adequately safeguarded and accounted for and Company officials did not establish adequate controls over collections and disbursements. As a result, neither the Company nor we were able to confirm all money was properly deposited, disbursed and accounted for.
- 21 collections (43 percent) totaling $7,770 lacked proper supporting documentation to determine whether they were deposited in full.
- $385 received for fire safety services was not deposited and cannot be accounted for.
- 225 disbursements (27 percent) totaling $106,360 were not properly supported or authorized prior to being made, including a $800 credit card payment to a non-Company vendor, $540 for member reimbursements, $1,455 in unauthorized withdrawals and $945 for an unidentified vehicle’s repair.
- Officers improperly borrowed Company money.
Key Recommendations
- Establish adequate controls and provide additional oversight of collections and disbursements.
- Ensure all collections are properly supported and deposited in full.
- Ensure all disbursements are properly supported and authorized by the Board prior to payment.
Company officials agreed with our recommendations and have taken corrective action.