Audit Objective
Determine whether the Serven Volunteer Fire Company, Inc. (Company) Board of Directors (Board) provided adequate oversight of Company operations to ensure financial activities were properly recorded and reported and resources were adequately safeguarded.
Key Findings
The Board did not ensure financial activities were properly recorded and reported and resources were adequately safeguarded, which increased the risk that errors or irregularities could occur and remain undetected and uncorrected.
The Board did not:
- Ensure that the bylaws were adequate or enforce their limited financial provisions,
- Establish supplemental financial policies or procedures,
- Conduct a thorough audit of bills, or
- Conduct an annual audit of the Treasurer’s books and records.
The Treasurer did not:
- Solely receive and deposit all money as required, and allowed a member to handle hall rental revenue.
- Properly record all financial transactions, or
- Prepare required annual reports.
Recommendations
The report includes 12 recommendations that, if implemented, will help improve the Board’s oversight of financial operations.
The former Border City Fire District (District) Department Chief (Chief), who was also a Director of the Border City Hose Company (Hose Company), was arrested on charges of grand larceny for allegedly stealing from the Hose Company. In July 2024, the former Chief pleaded guilty to misapplication of property (an A misdemeanor) and was ordered to pay full restitution of $18,772.53.
Company officers agreed with our recommendations and have begun implementing corrective action.