North Amityville Fire Company, Inc. – Cash Disbursements (2022M-163)

Issued Date
April 28, 2023

[read complete report here - pdf]

Audit Objective

Determine whether the North Amityville Fire Company, Inc. (Company) Board of Governors (Board) ensured that cash disbursements were for appropriate Company purposes and supported.

Key Findings

The Board did not ensure that all cash disbursements were for appropriate Company purposes or supported. Of the $3.6 million in disbursements made during the two-year audit period, we reviewed 373 disbursements totaling $653,480 and found disbursements totaling $585,792 were for inappropriate purchases and/or not supported. Examples of inappropriate purchases and unsupported disbursements:

  • $106,542 in unsupported cash disbursements were made to six Board members and the Chief.
  • $44,820 for domestic flights and lodging in, among other places, Dallas, Texas; Indianapolis, Indiana; Las Vegas, Nevada; and Nashville, Tennessee.
  • $32,093 for service and maintenance to vehicles the Company did not own or could not provide support for.
  • $11,258 for Christmas gifts that included, but were not limited to, gift cards, clothing, drones and video games.
  • $10,853 for one Board member’s Alaskan cruise vacation and the Chief’s vacation to a clothing-optional resort in Jamaica with his spouse, Secretary to the Board.
  • $7,239 for alcohol.
  • $5,121 for 14-karat gold and diamond rings for the Chief and his spouse.
  • $2,728 for optical services.
  • $1,998 for professional basketball tickets.

As a result, we shared our audit findings with outside law enforcement.

Key Recommendations

  • Ensure all disbursements are for appropriate Company purposes and supported.
  • Maintain a complete and accurate record of all cash disbursements paid by the Company.

Company officials agreed with our findings and indicated they plan to initiate corrective action.