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Audit Objective

Determine whether the Fine Fire District (District) officials adequately monitored financial activity and ensured appropriate records and reports were maintained.

Key Findings

District officials did not adequately monitor financial activities or maintain appropriate records and reports. As a result, more taxes were levied than needed to fund operations each year and there was an increased risk for errors and irregularities. The Board of Fire Commissioners (Board) did not:

• Ensure basic accounting records were maintained, it received written financial reports to manage operations or that the District’s required annual update documents (AUDs) were filed.
• Conduct an annual audit of the Secretary-Treasurer’s accounting records.
• Hold required public hearings on the proposed 2022 and 2023 budgets or formally adopt the budgets, as required by New York State Town Law Section 181.
• Approve realistic budgets for 2019 through 2021 – appropriations were overestimated by an average of $43,300, or 40 percent.
• Develop and adopt written multiyear financial and capital plans.
• Adequately audit claims prior to payment. For example, claims were approved without a quorum of the Board, not supported, not audited or they resulted in overpayments.

Key Recommendations

• Maintain sufficient accounting records and prepare and file financial reports.
• Audit and approve claims prior to payment and annually audit the Secretary-Treasurer’s records.
• Develop and adopt realistic budgets, hold public budget hearings, and develop and adopt written multiyear financial and capital plans.

District officials generally agreed with our recommendations and have indicated they plan to take corrective action.