Audit Objective

Determine whether Border City Hose Company Inc. (Company) officers provided adequate oversight of Company operations to ensure financial activities were properly recorded and reported and that resources were adequately safeguarded.

Key Findings

Company officers did not provide oversight of Company financial operations by performing even the limited oversight responsibilities outlined in the Company’s bylaws. Instead, certain officers hindered the Treasurer’s ability to perform his fiscal responsibilities by designating themselves as recipients and custodians of most Company money. As a result, Company money was not always properly accounted for, and a Director, who was also the Border City Fire District (District) Fire Department Chief (Director/Chief), inappropriately used Company funds for his personal benefit.

Recommendations

The report includes 13 recommendations that, if implemented, will improve the Company’s financial management.

The former Director/Chief was arrested on charges of grand larceny for allegedly stealing from the Company. In July 2024, the former Director/Chief pleaded guilty to misapplication of property (an A misdemeanor) and was ordered to pay full restitution of $18,772.53.

The Company reorganized as a social club in 2024; therefore, there was no official response to this audit.