[read complete report – pdf] | [read complete 2024 report – pdf] 

Purpose of Review

The purpose of our review was to assess the Caledonia Joint Fire District’s (District) progress, as of November 2025, in implementing our recommendations in the audit report Caledonia Joint Fire District – Board Oversight of Long-Term Planning (2024M-102), released in November 2024.

The audit determined that although the District has significant future operating and capital needs, the Board and District officials did not properly plan for these long-term financial and capital needs. The Board and District officials did not develop written multiyear financial and capital plans or develop and adopt a written policy related to fund balance and reserves. 

The Board and District officials also did not develop a written vehicle and equipment replacement plan, and three Board members did not know when these items needed to be replaced or their estimated replacement costs. Although the District had a capital equipment and apparatus reserve totaling $847,113, the Board Chair’s original estimated vehicle and equipment replacement needs indicated the District would need $2.7 million to replace these items over the next five years. 

Without written long-term financial plans, officials did not determine, among other things, how the construction and replacements would be funded long-term, the sustained financial needs associated with constructing a new fire station and replacing old vehicles and equipment, or the effect these decisions would have on the District’s fund balance and the tax levy.

The audit included two recommendations to help the Board improve its oversight of the District’s financial activities.

Background

The District provides fire protection and emergency services within the Town of Caledonia in Livingston County. An elected five-member Board (with one Board member vacancy as of July 2024) is responsible for the District’s overall financial management, including adopting annual budgets and establishing financial policies and long-term financial and capital plans. The Board appointed a Treasurer who serves as the District’s chief fiscal officer and is responsible for receiving, maintaining custody of, disbursing and accurately accounting for District funds and preparing periodic financial reports. The District operates from one fire station that is leased from the Village of Caledonia (Village).

Results of Review

Based on our limited procedures, one recommendation was fully implemented, and one was partially implemented. Until all recommendations are implemented, the Board cannot ensure the District properly planned for long-term financial and capital needs.