A State Comptroller’s audit of the Hamlin Fire Department has found the Board of Directors did not provide adequate oversight and did not establish appropriate controls over the Department’s financial activities.
The audit, released in May, covers the period January 1, 2013 through January 6, 2015. It reports, “… the board had not adopted written financial policies or procedures addressing cash receipts, disbursements, purchasing or claims processing and approval … the board had not taken steps to adequately segregate the treasurer’s duties or provide adequate oversight of the treasurer.”
In May 2012, the Hamlin Fire Department removed its former treasurer, “due to poor financial records and reporting,” the audit states. “Upon the treasurer’s dismissal, the department hired an external public accountant to review the department’s financial records. The external accountant identified poor accounting records, a weak control environment and lax oversight of the treasurer function,” the audit found.
The current treasurer and board have been developing and improving the financial processes and procedures, the audit states. “While they improved documentation and oversight over the course of the audit period, they need to formalize their improved procedures with written policies and make additional improvements to adequately safeguard the department’s assets.”
In her response, Hamlin Fire Department Board of Directors President Roberta Woods, stated the board learned much from the audit and have put many recommendations into effect. She notes that the recently formed Hamlin/Morton/Walker Fire District three departments are currently, “engaged in creating a new constitution and new bylaws that can reflect some of the suggestions made by the Comptroller’s Office.”
Woods said the board is creating a policy and procedure handbook which outlines in detail the job description, duties and responsibilities of each board member as well as outlines the handling of credit cards, checkbooks, purchase orders and mechanisms to maintain proper use and control of each.
An audit committee to review financial reports on a quarterly basis and an annual, internal audit has been established and includes the deputy treasurer of the Fire District.
Bank statements and reconciliations are reviewed by the audit committee and budgets will be presented in accordance to the guidelines outlined in the new constitution, Woods said.
Additionally, the board has agreed, “… that all financial matters for carnival, including interim and final report, will be performed by the treasurer. The treasurer will not be allowed to sign contracts,” Woods said.
