Clarendon Fire Company – Financial Activities (2023M-50)

Issued Date
August 04, 2023

Audit Objective

Determine whether the Clarendon Fire Company (Company) cash receipts and disbursements were properly supported, approved, reported and recorded.

Key Findings

The Company’s cash receipts and disbursements were not always supported, approved or recordedTherefore, the Treasurer did not provide the Executive Board (Board) with sufficient information to monitor the Company’s financial activity.

  • Company officials did not always provide the Treasurer with sufficient information to record financial transactions.
  • The Treasurer was not trained or made aware of his financial reporting duties and requirements.
  • Officials did not maintain adequate supporting documentation for cash receipts, and fundraising cash receipts, totaling $86,208, were not reported to the Board, as required.
  • Credit card payments, totaling $24,552, were not properly supported, recorded, or reported.
  • The Treasurer paid credit card bills lateAs a result, the Company incurred late fees and interest charges, totaling $1,157.

Key Recommendations

Maintain detailed financial records for each fundraising event and hall rental activity and ensure credit card charges are supported by itemized receipts and invoices, and that credit card payments are made in a timely manner.

Company officials agreed with our recommendations and indicated they planned to initiate corrective action.