[read complete report – pdf] | [read complete 2021 report – pdf] 

Purpose of Review

The purpose of our review was to assess the South Butler Fire District’s (District) progress, as of November 2025, in implementing our recommendations in the audit report South Butler Fire District – Board Oversight of Financial Operations (2020M-155), released in April 2021.

The audit determined that the Board did not provide adequate oversight of the District’s financial operations and did not adopt or enforce key financial policies. As a result: 

• The Treasurer lacked guidance to adequately perform financial duties and thus: did not maintain sufficient banking or purchasing records, funded and disbursed money from reserves without authorization and paid unapproved claims. 
• Officials could not demonstrate the District obtained the best available prices on purchases we reviewed.
• The Board adopted inaccurate and structurally imbalanced budgets and did not properly establish, fund or use reserve funds. 
• Fund balances and real property tax levies were higher than needed to fund operations.

The audit included 14 recommendations to help the Board improve its oversight of the District’s financial activities.

Background

The District encompasses parts of the Towns of Butler and Savannah in Wayne County. The District is governed by an elected five-member Board, responsible for the general management and control of the District’s financial operations. The Secretary/Treasurer (Treasurer) is the District’s chief fiscal officer and is responsible for receiving, disbursing and accounting for funds; preparing annual financial reports; and meeting any other reporting requirements.

Results of Review

Based on our limited procedures, the District implemented five recommendations, partially implemented one, and did not implement eight. Until all recommendations are implemented, the Board cannot ensure District assets are fully safeguarded.