Audit Objective 

Determine whether the Miller Place Fire District (District) Board of Fire Commissioners (Board) ensured that credit card charges were properly approved, supported and for appropriate purposes.

Key Findings 

The Board did not always ensure that credit card charges were properly approved, supported and for appropriate purposes. As a result, there is an increased risk that the District will expend funds for unauthorized or inappropriate purchases.

Of the 136 charges and credits totaling $70,570 we reviewed: 

• 86 charges totaling $40,198 were accompanied by purchase orders that lacked a detailed description of the items or services, the quantity of items, or the dollar amount of items or services.
• 12 charges totaling $9,362 did not have sufficient supporting documentation attached to the claim but were approved for payment by the Board.
• Commissioners approved and audited their own credit card charges totaling $14,544 and 25 charges totaling $10,005 had purchase orders that were approved by the District official making the purchase.

Key Recommendations 

• Ensure credit card charges are sufficiently supported with itemized receipts before they are audited and approved for payment.
• Ensure purchase orders contain sufficient detail and are approved prior to purchases being made.
• Ensure all claims are subject to an independent audit so Commissioners are not responsible for approving their own claims.

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