New York Department Overhauls Financial Procedure

The Limestone Volunteer Firemen Inc., the parent organization of the Limestone Volunteer Fire Department, has promised to consult professionals to correct its financial procedures after an audit by the state Comptroller’s Office turned up numerous problems.

Deputy Comptroller Gabriel F. Deyo told the parent company’s board it needs to tighten its oversight of the company treasurer by requiring financial reports every month and an annual audit.

Deyo said the board also should review and approve all bills before they are paid and make sure they are documented.

He recommended that the company treasurer should handle and record all the company’s money, including hall rentals and receipts from the company’s bar, the Firemen’s Social Club, instead of allowing them to be handled by the club treasurer.

He also recommended that detailed financial records be kept for all fundraising.

The audit, covering 16 months from January 2013 through April 2014, turned up about $38,000 in payments for which there were no receipts or invoices.

Auditors also found $18,700 in unidentified deposits from the club and $3,700 in fundraising proceeds and hall rentals in the club’s bank account. They noted that neither the company treasurer nor the club treasurer kept proper financial records. They also observed that although the company treasurer paid every bill, the board did not review or approve any of them.

Among the payments were four checks to the fire chief totaling $3,024. Auditors said he told them the payments were for mowing and snowplowing, but there were no invoices or contracts for the services.

Auditors also were critical of $32,208 in electronic payments from the club’s checking account for supplies for the club.

“Although these electronic payments were adequately supported and appeared to be for appropriate purposes,” auditors wrote, “the club manager made and authorized these transactions without any oversight.”

Although the club has been operated separately from the fire company, auditors said that since the company’s board is responsible for managing the club, all of the club’s money should be remitted to the company’s treasurer. Auditors concluded that “the board’s failure to properly oversee bar and hall rental receipts and ensure that the company treasurer accounts for and deposits all receipts are significant control weaknesses that substantially increase the risk that money could be lost or misused and remain undetected.”

Auditors came to the same conclusion about fundraising receipts after reviewing records from the company’s major event, the 2013 Dice Run.

It was noted that the company could not account for all wristbands issued and registration forms submitted. Auditors pointed out that although a profit of $40,281 was reported, only $39,172 was deposited.

In response to the audit, fire company president David Jacoby wrote, “It is our intention to revamp our internal structure and financial reporting to address the shortcomings your report noted and inconsistencies in our paperwork. We will seek the assistance of accounting and legal professionals to help us accomplish this, together with the help of our membership and community.”

email: danderson@buffnews.com