Audit Objective 

Determine whether the Cicero Fire District (District) Board of Fire Commissioners (Board) received adequate financial reports and effectively managed the District’s financial condition.

Key Findings 

The Board did not ensure that financial reports it received were timely, accurate, and contained the necessary information it needed to properly monitor the District’s financial condition and fund balance. If the Board does not adequately control expenditures and monitor and rebuild the District’s fund balance, there is a risk that the District may not have sufficient financial resources available to address unexpected occurrences or meet its cash flow needs. The Board did not: 

• Pay the recommended 2022 contribution of $121,981 into the District’s Length of Service Award Program (LOSAP). 
• Effectively monitor available fund balance, resulting in the unrestricted fund balance deficit increasing to as much as $54,423 during the audit period. 
• Effectively monitor budget-to-actual results. Officials spent $300,884 (10 percent) more than budgeted over the last three completed fiscal years. 
• Develop long-term financial and capital plans or a fund balance policy.
• Obtain an independent audit of the District’s 2021 and 2022 financial statements, as required. 

Key Recommendations 

• Ensure the Treasurer provides adequate financial reports. 
• Monitor expenditures and available fund balance. 
• Adopt a comprehensive written fund balance policy and long-term financial and capital plans. 

District officials agreed with our findings and indicated they will take, or have taken, corrective action.