[read complete report – pdf]

Audit Objective

Determine whether the Downsville Fire District’s (District) Board of Fire Commissioners (Board) ensured that goods and services were procured in accordance with the procurement policy and claims were approved prior to payment.

Key Findings

The Board did not ensure that goods and services were procured in accordance with the procurement policy and that all claims were approved prior to payment.

• None of the 18 purchases of goods and services tested, totaling $58,117 (11 percent), complied with the District’s procurement policy, because they either lacked evidence of required quotes or competition was not sought. As a result, taxpayers do not have assurance that goods and services are purchased in the most economical manner.
• Seven claims and 44 debit card transactions, totaling $8,346, were paid prior to Board audit and approval, which could result in the District making improper or inappropriate payments.

Key Recommendations

• Ensure compliance with the District’s procurement policy is clearly documented.
• Ensure that all claims are audited and approved prior to payment.
• Discontinue using the debit card.

District officials agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.