[read complete report – pdf]

Audit Objective 

Determine whether Canajoharie Volunteer Fire Department (Department) officials ensured that financial activities were properly recorded and supported. 

Key Findings 

Department officials did not ensure that financial activities were properly recorded and supported. As a result, the ability to make financial decisions was hindered and officials lacked the information necessary to provide an annual report. 

• The Treasurer did not accurately record 86 transactions (23 percent) totaling $33,280, provide timely monthly reports to officials for eight of the 13 months in our audit period or prepare bank reconciliations to confirm the Department’s recorded cash balances agree with the bank’s records. 
• Adequate cash collection controls were not established and 48 deposits totaling $16,655 were not made in a timely manner. 
• Two hundred forty-eight disbursements totaling $81,595 were not audited and approved before payment and 111 disbursements totaling $19,650 were made by debit card, circumventing the ability to be audited and approved before payment. 

Key Recommendations 

• Provide clear guidance for maintaining accounting records, receiving collections and reviewing and approving disbursements. 
• Maintain timely and accurate records and reports, prepare bank reconciliations, issue duplicate receipts and deposit collections in a timely manner. 
• Make payments only after a proper audit and approval of bills and discontinue the use of debit cards. 

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