By Richard E. Baldwin
The Buffalo News
OLCOTT, N.Y. — Financial records of the Olcott Volunteer Fire Company are in “general disarray,” making it impossible to determine whether all income and expenses have been adequately handled, according to the State Comptroller’s Office.
A comptroller’s report for Jan. 1, 2009, through last March 17 does not say that any of the money was handled improperly, but it says the lack of receipts and detailed records make it impossible to verify some of the transactions. The report, prepared by the Office of Comptroller Thomas P. DiNapoli, was made public Thursday.
Fire Company President Brian P. Miller said the company’s executive board already has implemented “many additional controls over the company’s finances.”
Miller added, “The executive board accepts recommendations set forth in the audit and will implement them along with our other changes.”
The state report does not criticize any individual in the department, but it recommends that the treasurer be given “appropriate guidance and training to adequately perform the duties of that position.”
Among its other recommendations are:
The treasurer should establish an accounting system and maintain complete, accurate and timely accounting records.
The treasurer also should prepare monthly bank reconciliations and present them to the board for review, and should ensure that all financial records and supporting documentation are maintained and are available for review.
The board should make sure that annual expenses do not exceed annual revenues; it should approve bills before they are paid; it should eliminate the use of its debit cards; and it should close unnecessary or inactive bank accounts.
The report says:
“Controls over the company’s financial activity were non-existent, the board did not audit bills or approve payments as defined in the company’s by-laws, and charge card usage was not monitored or restricted. The treasurer did not maintain even the most basic accounting records.
“We found that the company could not substantiate 193 disbursements totaling $67,744 in fiscal year 2010 and there was no documentation to indicate the purpose of $15,662 in payments to related parties in 2009 and 2010.
“The lack of an accounting system, the general disarray of financial documents, and the board’s failure to provide oversight of the company’s fiscal operations created a significant risk that company disbursements may not be for appropriate purposes and that all moneys due may not be received and/or deposited.
“The treasurer did not maintain any accounting records and relied on bank statements to provide financial information.”
The report also says the fire company had 13 bank accounts, but company officials made cash disbursements from only two of them.
It says the fire chief’s credit card charges included nearly $1,535 from a retail store and online activity, and $240 from a candle store. It says the chief said the charges were for T-shirts and sweat shirts for a fundraising event, and centerpieces for an installation dinner. “He could not provide us with receipts to verify these assertions,” according to the report.
It also says payments totaling $23,960 were made to officers and board members of the fire company and to members of their families. “Twenty payments, totaling $20,662, had no supporting documentation on file to indicate what was purchased,” it says.
“The company made an online payment of $1,350 to an individual,” the report said. “There was no documentation indicating the purpose of this transaction and company officials were unable to explain who this individual was or what the payment was for.”
The Olcott Fire Company has 56 volunteer members who provide fire protection to a portion of the Town of Newfane, and it is governed by a 13-member executive board.
The comptroller’s report does not suggest any criminal activity, nor does it say that any money actually is missing.
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