[read complete report - pdf]

Audit Objective

Determine whether the Fort Hunter Fire District (District) Board of Commissioners (Board) properly established and managed capital reserve funds.

Key Findings

The Board did not properly manage the District’s three capital reserve funds. As a result, the Board reduced its transparency of financial operations, and the public  did not have an opportunity to exercise its rights as provided in General Municipal Law. As of August 31, 2022, the three capital reserve funds had balances totaling $179,932.

The Board did not:

• Properly establish the equipment capital reserve fund in accordance with General Municipal Law.
• Develop a multiyear capital plan that includes the use of capital reserve funds and their funding goals.
• Clearly identify the source of funding for the capital reserves as a part of the budgeting process.

Key Recommendations

• Establish capital reserve funds in compliance with General Municipal Law.
• Develop a multiyear capital plan that includes the use of capital reserve funds and their funding goals.
• Include funding of capital reserves as part of the budgeting process or as authorized by Board resolution and voter approval.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.