Lydia E. York Delaware State Auditor
Memorial Volunteer Fire Company 2021-2023
Performance Audit – Calendar Years 2021, 2022, and 2023
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Report Summary
Background
The Memorial Volunteer Fire Company (the “MVFC”) engaged the State of Delaware Office of Auditor of Accounts for a performance audit (the “Audit”).
The purpose of our Audit was to evaluate the efficiency and effectiveness of operations during calendar years 2021 to 2023.
The three audit objectives were: to verify the design and operational effectiveness of internal controls over financial activities and reporting; assess the effectiveness of the entity’s financial governance framework and daily financial operations, including oversight, decision-making, roles, policies, record-keeping, budgeting, compliance, and transparency; compliance with the Sussex County Grant agreement for the period under review.
The State Auditor is authorized under 29 Del. C., §2906 to conduct performance audits.
Key Information and Findings
Our audit uncovered multiple control deficiencies that have increased the MVFC’s exposure to financial risk. The primary areas of concern relate to the following:
- Non-compliance with Policy & Procedure: The former Treasurer did not consistently follow internal policies for the proper handling and depositing of money and checks. This condition creates a vulnerability for the organization and represents a deviation from established financial criteria.
- Deficient Expense Records: Insufficient documentation was maintained for certain expenditures, limiting the audit trail and increasing the risk of financial irregularities.
- Weaknesses in Financial Oversight: Organizational policies were determined to be inadequate in providing clear and robust guidance for the management of credit cards, payroll, the annual budget, and grant funding.
The current MVFC Board been proactive in making process improvements which were discussed with AOA. However, a future audit would be necessary to provide assurance that controls are in place and working as designed.