Comptroller: Fire district must improve oversight

Apr. 17—The Office of New York State Comptroller Thomas DiNapoli recommended that the fire districts in Masonville implement greater oversight of financial operations in a March 26 report.

The audit found that the Masonville Fire District Board of Commissioners did not review adequate supporting documentation for nine disbursements totaling $57,374 for an 18-month period beginning Jan. 1, 2019, and did not approve 12 disbursements totaling $75,880 before payments were made.

A review of the 10 total receipts totaling $253,808 — excluding interest income deposits of $92 — found that all were deposited, but that the board treasurer did not always do so within the requisite 10 days of receipt, according to the report. The audit found that deposits were made an average of 54 business days after the check date, with the latest being deposited 132 business days after the check date.

A review of 114 disbursements from the audit period, totaling $234,995, were "generally supported by invoices or other documentation," according to the report, and were for proper purposes, but that $57,374 in purchases were approved without adequate supporting documentation.

Documentation obtained by state examiners found that all unsupported purchases were for proper purchases, including for firefighting gear and repairs to a district vehicle, according to the report, but that $75,880 in vehicle repairs, insurance and firefighting gear was paid for without prior board support.

All 17 bank transfers, totaling $193,200, were found to be made between existing district bank accounts and for appropriate purposes, according to the report.

"Control weaknesses existed because the Board did not provide compensating controls, such as supervisory or other oversight procedures designed to reduce the risk of errors or fraud occurring and not being detected. Furthermore, Board members were unaware that they should audit the Treasurer's records," the report read. "Although we did not find any inappropriate transactions, without proper controls in place, there is a risk that money collected will not be deposited and disbursements will not be made for proper purposes."

The audit also found that the board treasurer used her personal computer to maintain financial records and perform online banking transactions on her own personal computer, leaving state examiners "unable to assess the adequacy of the computer's controls," including determining who had access to the computer, if passwords were used and if they were sufficiently secure, if virus protection was in place and up-to-date, whether the computer was scanned for malicious software and other cybersecurity threats.

"While officials were not aware of any compromised personal, private and sensitive information, not having the records on a dedicated District computer increased the risk that (such data) could become compromised," the report read.

A Feb. 19 response letter signed by Board of Commissioners Chairman Steven Roff noted that a laptop for financial recordkeeping was purchased as a result of the audit and pledged to implement greater controls and oversights as recommended by the Comptroller's Office.