Purpose of Audit

The purpose of our audit was to examine the District’s funding of its capital reserve for the period of January 1, 2012 through September 30, 2013.

Background

The Greenville Fire District, which is governed by an elected five-member Board of Fire Commissioners, is located in the Town of Greenville in Orange County. The District is a district corporation of the State, distinct and separate from the Town. Budgeted expenditures for 2013 were $569,444.

Key Findings

• The District accumulated funds in its capital reserve in excess of the amount originally established as a maximum funding level and the reserve has consistently been funded with amounts exceeding the amounts budgeted annually for the reserve.
• The Board had intended to use the reserve to purchase a truck but did not due to a public petition against the purchase.

Key Recommendations

• Periodically assess the reasonableness of amounts accumulated in reserve funds.
• If new equipment is not purchased, develop a plan for use of the surplus funds.