The State Auditor’s office was asked to conduct the audit by the State Fire Commission, after receiving what it called “numerous” concerns from members about the Memorial Volunteer Fire Company’s fiscal management.
The performance audit reports the fire company is at financial risk, and State Auditor Lydia York says multiple control deficiencies are the root cause.
“Primarily, it was noncompliance with their internal policies and procedures for handling money and checks; there was insufficient documentation of some expenses; and we found some weaknesses in their financial oversight for credit cards specifically” she said.
The Auditor’s office examined the fire company’s operations from 2021 to 2023, and found deficiencies in the way it handled and tracked its money and expenditures
During that time frame, Memorial received more than 2.6 million dollars in state funds.
“From our perspective, what this highlights is the importance of strong internal controls. That’s how we will know that things have gotten spent the way they're supposed to be spent. We’re always on the lookout for policies and procedures that govern the use of these funds.” she said.
York adds that non-compliance issues like these are the most common way an organization falls into financial vulnerability; using mostly volunteers, sometimes people just stop following the rules.
Volunteers can watch for things that can jeopardize their organizations financial security: York says make sure board members have meetings, follow their own rules, and that financial reports are received during the meetings.
“Certainly, the first level of oversight are the members themselves" says York.
Fire Commission Chair Ron Marvel notes organizations like this one receive significant taxpayer dollars, often with little to no oversight
"It’s essential that we work collaboratively with fire service members and legislators to strengthen accountability for how these public funds are spent. At the same time, we must ensure that fire companies have the flexibility to use the resources appropriately so they can continue providing the highest level of protection to their communities.” he said.
MVFC has acknowledged findings and committed to strengthen internal controls.
