Objective
Determine whether Morley Volunteer Fire Company (Company) officials provided oversight of financial operations to ensure funds were safeguarded.
Key Findings
Company officials did not provide oversight of financial operations to ensure funds were safeguarded. As a result, the former Treasurer was able to misappropriate $64,972 of Company funds from January 2016 through December 2019. The former Treasurer was able to:
- Obtain cash totaling $45,400 by making inappropriate automated teller machine (ATM) and in-bank withdrawals, writing unauthorized checks to herself and receiving cash from Company funds presented for deposit.
- Make 178 personal purchases totaling $19,572 using a Company debit card.
These improper transactions went undetected because Company officials did not review monthly bank statements and canceled check images, receive monthly financial reports, audit bills (claims) prior to payment or compare cash collections to deposits.
The former Treasurer was arrested in July 2023 and pleaded guilty to grand larceny in the fourth degree in November 2023. She was sentenced to probation in January 2024 and ordered to pay $50,000 in restitution.
Key Recommendation
- Routinely review the Treasurer’s work, discontinue using debit cards, and audit and approve claims prior to payment.
Company officials agreed with our recommendations and indicated they plan to initiate corrective action.