Purpose of Audit

The purpose of our audit was to examine the District’s internal controls over capital asset spending for the period January 1, 2013 through June 30, 2014.

Background

The Smithtown Fire District is a district corporation of the State, distinct and separate from the Town of Smithtown and Suffolk County in which it is located. The District covers nearly 18 square miles and services approximately 50,000 residents with seven fire companies and one emergency services squad. The District is governed by an elected five-member Board of Fire Commissioners and has almost 200 members. The adopted general fund budget for 2014 totals approximately $4.23 million.

Key Findings

• The Board approved a capital project funded with $2.8 million from the capital reserve fund without complying with permissive referendum requirements.
• The Board did not have a capital asset policy and procedures to be followed for constructing and reconstructing capital assets.

Key Recommendations

• Ensure that permissive referendums for capital projects financed with the capital reserve follow all legal requirements.
• Adopt a written capital asset policy containing the procedures to be followed when authorizing capital asset construction.