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Audit Objective

Determine if the Board of Fire Commissioners (Board) ensured that fund balance was reasonable.

Determine if the Board ensured that leave records were properly maintained and leave benefits were authorized.

Key Findings

• As of December 31, 2016, the South Farmingdale Fire District’s (District) unrestricted fund balance totaled more than $1.3 million, or 83 percent of 2017 budgeted appropriations.
• District officials overestimated appropriations by more than $535,000 or 12 percent of actual expenditures from 2014 through 2016.
• District officials paid $15,747 for 635 hours of leave benefits that were not authorized by the Board.

Key Recommendations

• Use surplus funds as a financing source for funding one-time expenditures, funding needed reserves or reducing property taxes.
• Adopt reasonable budget estimates for appropriations.
• Establish leave benefits by an employee handbook, Board resolution, individual contract or collective bargaining agreement (CBA).

Except as specified in Appendix A, District officials generally agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comments on the issues raised in the District’s response letter.