Purpose of Audit

The objective of our audit was to review the District’s financial operations for the period January 1, 2014 through March 3, 2016.

Background

The Harford Fire District is a district corporation of the State, distinct and separate from the Town of Harford and Cortland County in which it is located. The District is governed by an elected five-member Board of Fire Commissioners. General fund budgeted appropriations for 2016 total approximately $99,000.

Key Findings

• The Board did not segregate key financial duties and did not implement compensating controls.
• Annual financial reports were not completed within the 60-day requirement for 2014 or 2015.
• The Treasurer’s accounting records were inaccurate, and at times, illegible; his financial reports were inconsistent, untimely and inaccurate.
• Neither the Treasurer nor any other District official performed bank reconciliations.

Key Recommendations

• Segregate key financial duties or implement compensating controls.
• Ensure that the Treasurer files the annual financial report within the prescribed time frame.
• Attend training regarding recordkeeping and financial reporting.
• Complete monthly bank reconciliations and budget-to-actual reports.