Audit Objective
Did the Averill Park – Sand Lake Fire District No. 2 (District) Board of Fire Commissioners (Board) properly audit claims?
Audit Period
January 1, 2025 – January 31, 2026
Understanding the Audit Area
An effective audit of claims is often the last line of defense for preventing unauthorized, improper or fraudulent claims from being paid. When a fire district has a strong claims auditing process, the control consciousness of its staff is enhanced because officers and employees are aware that a careful review of claims will occur before public funds are disbursed. Because it is the Board’s responsibility to ensure tax dollars are spent properly, efficiently and in the best interest of taxpayers, the Board should conduct a thorough and deliberate audit of claims before directing the Treasurer to pay them.
The District paid 337 claims totaling $432,998 during the audit period.
Audit Summary
The Board, as a whole, did not properly audit claims because it did not conduct a thorough and deliberate audit of all claims paid during the audit period. We reviewed 62 claims totaling $280,832 and determined that none of the claims were audited and approved by the entire Board as required. We determined that the 62 claims were properly supported and for valid and legal purposes. However, the lack of a claims audit increased the risk that claims for improper purposes could be paid, or that irregularities could go undetected and uncorrected.
This report includes two recommendations that, if implemented, will improve the effectiveness of the District’s claims audit process. District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.
This audit was conducted pursuant to Article V, Section 1 of the State Constitution and the Office of the New York State Comptroller’s (OSC’s) authority as set forth in Article 3 of the New York State General Municipal Law. The audit’s methodology and standards are included in Appendix C.
The Board has the responsibility to initiate corrective action. Pursuant to Section 181-b of New York State Town Law (Town Law), a written corrective action plan (CAP) that addresses the findings and recommendations in this report must be prepared and forwarded to OSC within 90 days. To the extent practicable, implementation of the CAP must begin by the end of the next fiscal year. For more information on preparing and filing the CAP, please refer the OSC brochure, Responding to an OSC Audit Report, which was provided with the draft audit report. The Board is encouraged to make the CAP available for public review.