[read complete report - pdf]

Audit Objective

Determine whether the Upper Jay Volunteer Fire Department (Department) officials ensured financial activities were properly recorded and reported and funds were safeguarded.

Key Findings

Department officials did not ensure financial activities were properly recorded and reported and funds were safeguarded, which hindered their ability to make informed financial decisions and increased the risk that errors or irregularities could occur.

• The Treasurer did not properly record all financial transactions in the accounting records or prepare required annual reports.
• Bank reconciliations were not prepared monthly.
• Forty-three deposits totaling $33,918 were not supported by adequate documentation.
• Sixty-three disbursements totaling $23,585 were not approved before payment.

Key Recommendations

• Maintain complete, accurate and timely accounting records, and provide officials with an annual report, as required by the bylaws.
• Ensure bank reconciliations are prepared monthly and independently reviewed and approved.
• Ensure all collections are supported by adequate documentation and as required by the bylaws, review and approve all bills before payment.

Department officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.