Audit Objective 

Determine whether the Wallace Volunteer Fire Department, Inc. (Department) officers and members provided adequate financial oversight. 

Key Findings 

The Department officers (Officers) and members did not enforce the limited financial provisions outlined in the Department’s constitution and bylaws (bylaws) or adopt adequate policies and procedures to provide effective financial oversight of Department operations. In addition: 

• The membership did not follow their bylaws and elect a five-member Board of Directors or a financial secretary, and the President did not appoint members to the auditing committee to assist with financial oversight and help mitigate the risks associated with a lack of segregation of duties.
• The Treasurer did not submit various annual reports to the Office of the State Comptroller (OSC), the Internal Revenue Service (IRS) or the Officers and members as required, and did not have a system for recording all receipts and disbursements.
• The President had sole control of the foreign fire insurance (FFI) bank account instead of the Treasurer as required by law.
• The Treasurer did not accurately capture in the monthly meeting minutes the cash receipt and disbursement amounts discussed. 

As a result, there is an increased risk of theft and waste of Department resources. 

Key Recommendations 

We provided 11 recommendations to help the Department’s Officers and members improve the weaknesses identified in this report. 

Department officials agreed with our recommendations.