[read complete report – pdf]

Audit Objective 

Determine whether the Eaton No. 1 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. The Board of Fire Commissioners (Board) did not: 

• Ensure basic accounting records were maintained or that it received written financial reports to manage operations.
• Ensure bank reconciliations were performed. 
• Ensure that the District’s required annual financial reports (AFRs) were filed in a timely manner. 
• Conduct an annual audit of the Secretary- Treasurer’s accounting records for 2020 through 2022.
• Adequately audit claims prior to payment. Of the 108 claims totaling $209,006 that we reviewed, 55 claims totaling $116,846 (56 percent) had one or more exceptions.
• Adhere to statutory requirements by seeking competition when purchasing a truck and related equipment totaling $80,991. 

Key Recommendations 

• Maintain proper accounting records and prepare and file financial reports in a timely manner. 
• Perform an annual audit of the Secretary-Treasurer’s records.
• Ensure claims are supported, audited and approved prior to payment. 
• Comply with competitive bidding requirements. 

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