Purpose of Audit

The purpose of our audit was to review internal controls over selected financial operations for the period January 1, 2013 through August 31, 2014.

Background

The Lake Ronkonkoma Fire District is a district corporation of the State, distinct and separate from the Town of Brookhaven, Suffolk County, in which it is located. The District is governed by an elected five-member Board of Fire Commissioners. Budgeted appropriations for 2015 total approximately $3.3 million.

Key Findings

• District officials used bid specifications for a purchase that may have created ambiguity as to whether the District intended to consider products that were reasonably equivalent.
• District officials did not consistently adhere to bidding or competitive offering requirements when purchases exceeded the statutory bidding threshold.
• The Board did not ensure that the Treasurer properly accounted for cash collected.
• The Board did not ensure that the duties within the Treasurer’s office were adequately segregated and did not implement compensating controls.

Key Recommendations

• Ensure that bid specifications are written to encourage competition from multiple vendors.
• Ensure that purchases are made in accordance with statute and the District’s procurement policy.
• Establish and enforce formal policies over cash receipts.
• Segregate the Treasurer’s duties or, when this is not feasible, implement effective oversight procedures.