Purpose of Audit

The purpose of our audit was to examine internal controls over the District’s financial operations for the period January 1, 2013 through July 10, 2014.

Background

The Greenville Fire District #1 is a district corporation of the State, distinct and separate from the Town of Greenville, located in Greene County. The District is governed by an elected five-member Board of Fire Commissioners. The District’s budgeted appropriations for 2014 totaled $317,350.

Key Findings

• District budgets did not include detailed estimates of revenues and did not include estimates of fund balance.
• Reserve funds were not properly established.
• Claims were paid prior to Board review and did not contain itemized vouchers.
• The Treasurer does not provide budget status reports to the Board and there is no independent oversight to ensure that completed bank reconciliations are correct.

Key Recommendations

• Ensure compliance with New York State Town Law by developing policies and procedures over the budgeting process.
• Review the legal requirements for reserve funds and legalize existing reserve accounts.
• Audit all claims and ensure that each claim contains adequate supporting documentation.
• Ensure that required reports are provided to the Board and that bank balances are correctly reconciled to District account balances.