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Purpose of Audit

The purpose of our audit was to examine the Board’s oversight of financial operations for the period January 1, 2015 through March 13, 2017.

Background

The Sodus Center Fire District is located in the Town of Sodus in Wayne County. The District is a district corporation of the State, distinct and separate from the Town, governed by an elected five-member Board of Fire Commissioners. District expenditures for 2016 totaled $108,631.

Key Findings

• The Board maintained a lax control environment and did not carry out its responsibility to oversee District financial operations and safeguard District assets.
• The Board allowed the Treasurer to perform all key aspects of District financial operations without providing independent oversight.
• The Treasurer made $15,943 in questionable payments to himself and his business and did not provide sufficient documentation for $6,934 in other questionable disbursements.
• The Board conducted business at its meetings without a quorum of Board members in attendance.
• The Board did not ensure that the Treasurer submitted the required annual financial reports and tax levy limit calculations to OSC.

Key Recommendations

• Take a much more active role in managing the District.
• Ensure that the Treasurer’s duties are segregated or implement compensating controls.
• Review the questionable disbursements and seek reimbursement from the Treasurer for any misappropriated money.
• Ensure a majority of Board members meet on a regular basis, at least monthly, to conduct District business and notify the public of meeting times and dates.
• Prepare and submit accurate annual financial reports and tax levy calculations to OSC in a timely manner.