Purpose of Audit

The purpose of our audit was to examine the Department’s controls over financial activity for the period January 1, 2012 through March 17, 2014.

Background

The Ira Volunteer Fire Department is a not-for-profit corporation located in the Town of Ira in Cayuga County. The Town contracts with the Department, which has a four-member Executive Board and a five-member Board of Directors, to provide fire protection services to its residents. Disbursements for the period January 1, 2012 through January 31, 2014 totaled $259,333.

Key Findings

• The Department’s bylaws do not adequately segregate the Treasurer’s duties.
• The Department has not adopted a code of ethics.
• The Department does not adhere to the purchase order system required in its bylaws.
• The Audit Committee’s audits only included a review of cash disbursements.
• The Treasurer does not prepare proper bank reconciliations.

Key Recommendations

• Adopt financial policies and procedures that adequately segregate duties and provide oversight.
• Adopt a code of ethics.
• Implement a purchase order system.
• Conduct quarterly audits of all financial activity and records.
• Prepare formal bank reconciliations and provide to the Board and Directors for review.