FINE – The state Comptroller’s Office is highly critical of the Fine Fire District in an audit report charging the district hasn’t conducted an annual audit of their books for over five years.

The report is critical of the fire district’s lack of compliance with several requirements of General Municipal Law and Fine town law.

“The district board has not adopted purchasing and investment policies or a code of ethics, as required by General Municipal Law. The secretary-treasurer has not filed the correct annual financial report with the Office of the State Comptroller since 2007. Although the district board reviews claims before they are paid, it has not conducted an annual audit of the secretary-treasurer’s records, as required by town law, in over five years.

The district’s general fund budget totaled $101,800 for the 2011 fiscal year.

“The purpose of our audit was to determine if District controls were adequate to ensure that financial activity is properly recorded and reported and that District moneys are safeguarded for the period January 1, 2011, to January 31, 2012,” the auditor’s report said.

In a summary of their findings, auditors said that:

• The Board has not adopted purchasing and investment policies or a code of ethics, as required by GML.

• The Secretary-Treasurer does not provide the Board with written reports showing revenues and expenditures received and disbursed or budget vs. actual results.

• The Secretary-Treasurer did not withhold and remit required payroll taxes from her salary and has not issued information returns (1099s) to individuals earning $600 or more for non-employee services rendered to the District.

• The Secretary-Treasurer has not filed the correct annual financial report with the Office of the State Comptroller since being appointed by the Board in 2007.

• The Board has not conducted an annual audit of the Secretary-Treasurer’s records, as required by Town Law, in over five years.

The auditors’ recommendations include adopting purchasing and investment policies as well as a code of ethics as required by statute; requiring the Secretary-Treasurer to prepare and present written monthly reports to assist in monitoring financial activity; ensuring that the Secretary-Treasurer properly withholds and reports payroll taxes to the IRS and maintains suitable payroll records to document payroll transactions; ensuring that all vendors subject to the issuance of a 1099 informational form are properly identified and reported to the IRS as required; ensuring that any associated payments are documented on a claim that is audited and approved by the Board; and ensuring that the Secretary-Treasurer properly prepares and files an annual financial report with the Office of the State Comptroller in a timely manner.

They also recommend an audit of the Secretary-Treasurer’s records annually and document the results of the audit in the minutes.