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Taxpayers in Springwater have been funding a surplus of more than $126,000 for Springwater Fire District as elected officials failed to meet their fiduciary responsibilities over a three-year span, according to a report by the state’s Office of the State Comptroller.
“The board does not provide adequate oversight of the district’s financial operations,” the report stated.
In the 2010 budget, the district had unreserved, unallocated funds totalling $126,716 — enough to cover 68 percent of the district’s annual spending for 2011. That fund balance has been growing since 2008. Yet over the last four years, the district’s property tax rate went up 9 percent, pulling in $23,000 in new revenues.
Auditors found that the fire district’s board of publicly elected commissioners weren’t aware of the budget surplus. The district’s publicly elected treasurer-secretary failed to provide annual reports for budgets between 2008 and 2010 to the state or make copies available through the Springwater town clerk’s office, both of which are required by law.
Annually required audits were not performed and two board members did not attend required training and were therefore unaware of their duties.
A review of the district’s expenses showed all firematic expenditures, totaling approximately $345,000 in 2008-10, were properly allocated. A review of 15 disbursements subject to competitive bidding rules or written quotes, totaling $40,293, and were all documented.
However, auditors found the board did not review the treasurer’s books and did not have proper accounting controls in place.
According to the report, the fire district’s treasurer-secretary was aware of the reporting requirements, but failed to file reports “because she could not reconcile the cash and fund balance accounts.”
In a phone interview Tuesday, the district’s treasurer-secretary, Tracy Smith, said the board agreed with the audit findings and officials are taking steps to correct issues.
The board’s official response to the audit agreed with the Comptroller’s Office. District officials said they would adopt necessary policies and procedures for budget planning and filing as well as oversight of district financial operations. As for the $126,000 budget surplus, the board will also consider creating a reserve fund for the purchase of an ambulance. Further, the board agreed that all elected board members should attend required training.
None of the fire district board members responded to multiple requests for comment.
In a separate report issued last week, the Comptroller’s Office noted Springwater is among 613 of the state’s 882 fire districts that failed to meet the first reporting requirements associated with the state’s recently enacted 2 percent property tax cap.
Taxpayers in Springwater have been funding a surplus of more than $126,000 for Springwater Fire District as elected officials failed to meet their fiduciary responsibilities over a three-year span, according to a report by the state’s Office of the State Comptroller.
“The board does not provide adequate oversight of the district’s financial operations,” the report stated.
In the 2010 budget, the district had unreserved, unallocated funds totalling $126,716 — enough to cover 68 percent of the district’s annual spending for 2011. That fund balance has been growing since 2008. Yet over the last four years, the district’s property tax rate went up 9 percent, pulling in $23,000 in new revenues.
Auditors found that the fire district’s board of publicly elected commissioners weren’t aware of the budget surplus. The district’s publicly elected treasurer-secretary failed to provide annual reports for budgets between 2008 and 2010 to the state or make copies available through the Springwater town clerk’s office, both of which are required by law.
Annually required audits were not performed and two board members did not attend required training and were therefore unaware of their duties.
A review of the district’s expenses showed all firematic expenditures, totaling approximately $345,000 in 2008-10, were properly allocated. A review of 15 disbursements subject to competitive bidding rules or written quotes, totaling $40,293, and were all documented.
However, auditors found the board did not review the treasurer’s books and did not have proper accounting controls in place.
According to the report, the fire district’s treasurer-secretary was aware of the reporting requirements, but failed to file reports “because she could not reconcile the cash and fund balance accounts.”
In a phone interview Tuesday, the district’s treasurer-secretary, Tracy Smith, said the board agreed with the audit findings and officials are taking steps to correct issues.
The board’s official response to the audit agreed with the Comptroller’s Office. District officials said they would adopt necessary policies and procedures for budget planning and filing as well as oversight of district financial operations. As for the $126,000 budget surplus, the board will also consider creating a reserve fund for the purchase of an ambulance. Further, the board agreed that all elected board members should attend required training.
None of the fire district board members responded to multiple requests for comment.
In a separate report issued last week, the Comptroller’s Office noted Springwater is among 613 of the state’s 882 fire districts that failed to meet the first reporting requirements associated with the state’s recently enacted 2 percent property tax cap.
