MORLEY -- The state Comptroller’s office has criticized the Morley Fire District for failing to file annual financial reports with the state, not producing periodic written financial reports and not adopting purchasing, investment and code of ethics policies.

Deputy Comptroller Steven J. Hancox, in a letter to the district following a recent audit, notes the district’s annual budget is $13,000 and that with a few exceptions, financial activity for the district has been “properly recorded” and have been for “proper district purposes.”

However, written authorization by district commissions in meeting minutes was found for only two of 41 payments made from January 2010 through July 2011, he said. “The district did not provide supporting documentation for six disbursements totaling $7,872,” he said, noting most were for gasoline.

Hancox noted the secretary-treasurer provides commissioners with a verbal report of the cash balance in the checking account, but a written periodic financial report is needed instead.

The comptroller’s office is recommending the fire district:

• adopt purchasing, investment and code of ethics policies, as required by law.

• ensure t the Secretary-Treasurer file the District’s annual financial report with the Office of the State Comptroller in a timely manner.

• require the Secretary-Treasurer to prepare and present written monthly reports to assist in monitoring the District’s fiscal activity and financial condition.

• require the Secretary-Treasurer to maintain subsidiary revenue and expenditure ledgers to help facilitate the preparation of monthly and annual financial reports.

• audit claims prior to payment, ensure that all claims contain appropriate supporting documentation, and properly document its audit of claims.

• audit the Secretary-Treasurer’s records annually, as required by Town Law, and document the results of this audit in the Board’s minutes.