Issued Date
April 08, 2022
Audit Objective
Determine whether the Schonowe Volunteer Fire Company, Inc. (Company) Board provided adequate oversight of financial operations.
Key Findings
The Board did not provide adequate oversight of financial operations. The Board did not develop financial procedures for collections and disbursements, periodically monitor the budget or ensure the constitution (bylaws) were followed. As a result, neither the Company nor we were able to confirm all money was recorded and deposited intact.
- 14 collections totaling $8,956 lacked proper supporting documentation to determine whether they were deposited intact (i.e., in the same amount and form it is received).
- 15 disbursements totaling $3,052 were not properly supported, audited or authorized before payment.
- The Board did not review monthly budget to actual reports or prepare an annual Directors’ report to the membership, as required by the bylaws.
Key Recommendations
- Develop financial procedures to ensure all the bylaws are followed.
- Ensure all collections and disbursements are supported with appropriate documentation.
- Periodically monitor the budget and make any needed adjustments.
Company officials generally agreed with our recommendations and indicated they plan to initiate corrective action.