Purpose of Audit

The purpose of our audit was to examine the District’s financial operations for the period January 1, 2009 through July 24, 2014.

Background

The Pulteney Fire District No. 2, located in Steuben County, is a district corporation of the State, distinct and separate from the Town of Pulteney. The District, which is governed by an elected five-member Board of Fire Commissioners, has one fire department, the Pulteney Volunteer Fire Department. Budgeted appropriations for 2014 totaled $229,350.

Key Findings

• The Board failed to properly segregate the Treasurer’s duties or establish mitigating controls.
• Because the Board did not provide adequate oversight, the former Treasurer misappropriated $9,224 in District funds and made $709 in questionable payments to her husband.
• The former Treasurer did not maintain accurate financial records, prepare and present accurate reports to the Board or deposit revenue for hall rentals timely.

Key Recommendations

• Provide appropriate oversight of financial operations.
• Seek reimbursement from the Treasurer for the amounts misappropriated.
• Ensure that all District records are appropriately maintained and retained.