Cuddebackville Fire District – Audit Follow-Up (2024M-94-F)

Issued Date
July 17, 2026

[read complete report – pdf] [read complete 2025 report – pdf]

Purpose of Review

The purpose of our review was to assess the Cuddebackville Fire District’s (District) progress, as of March 2026, in implementing our recommendations in the audit report Cuddebackville Fire District – Board Oversight (2024M-94), released in February 2025.

The audit determined the Board of Fire Commissioners (Board) did not provide adequate oversight of the District’s financial operations or properly audit claims. The Board also used unrealistic budgetary estimates that resulted in annual operating deficits and a declining fund balance. The Board did not:

  • Ensure the Treasurer maintained complete and accurate accounting records. 
  • Request or receive regular financial reports. 
  • Ensure claims were properly audited prior to payment.
  • Conduct required annual audits for 2020 through 2023. Although the Board paid a Certified Public Accounting (CPA) $6,750 to conduct the 2019 and 2020 audits, the CPA did not complete the 2020 audit and has possession of the District’s financial records . The Board was unaware the audit was not completed and took no action, until our audit, to follow up with the CPA.
  • Ensure the required Annual Financial Reports (AFRs) for 2020 through 2023 were filed.

The audit included 13 recommendations to help the Board and District officials improve oversight of the District’s financial operations.

Background

The District, served by the Cuddebackville Fire Department provides fire protection and emergency services to the Town of Deerpark in Orange County. The elected three-member Board, with an average tenure of 11 years, governs the District and is responsible for its overall financial management and safeguarding resources. The elected Treasurer is the chief fiscal officer and is responsible for receiving, disbursing, transferring and accounting for all District funds and preparing periodic financial reports

Results of Review

District officials fully implemented six recommendations, partially implemented five recommendations, and did not implement two recommendations. While officials made progress in addressing many of the report’s findings, additional action is needed to strengthen financial oversight, improve financial planning and reporting, enhance internal controls and promote transparency and accountability. Until all recommendations are implemented, the Board cannot ensure District assets are fully safeguarded.