$40K In Purchases Lacked Detailed Orders In Miller Place Fire District: Audit

MILLER PLACE, NY — Miller Place Fire District officials did not always ensure credit card charges were properly approved, supported, and for appropriate purposes, posing an increased risk that the district will expend funds for unauthorized or inappropriate purchases if not corrected, an audit by state Comptroller Thomas DiNapoli's office found.

Of the 136 charges and credits totaling $70,570 the comptroller's office reviewed, 86 charges totaling $40,198 were accompanied by purchase orders that lacked a detailed description of the items or services, the quantity of items, or the dollar amount of items or services, according to a news release.

Twelve charges totaling $9,362 did not have sufficient supporting documentation attached to the claim but were approved for payment by the board, the comptroller's office found.

Commissioners approved and audited their own credit card charges totaling $14,544, and 25 charges totaling $10,005 had purchase orders that were approved by the district official making the purchase, according to the comptroller's office.

Auditors recommended the district ensure credit card charges are sufficiently supported with itemized receipts before they are audited and approved for payment, and that purchase orders contain sufficient detail and are approved prior to purchases being made, the comptroller's office said.

They also recommended the district ensure all claims are subject to an independent audit so commissioners are not responsible for approving their own claims, according to the comptroller's office.

District officials "generally agreed with" the audit's findings and have initiated, or indicated they planned to initiate corrective action, auditors found.

In a letter responding to the audit, Carol Hawat, chairperson of the Board of Fire Commissioners said many of the findings were due to oversights as opposed to non-existent policies or weak controls and procedures.

"In some cases, documentation provided and deemed insufficient in the findings is what was provided by or made available by the vendor related to the online purchases and training events," she wrote.

The board has revised its credit card policy to establish when credit cards may be used, credit limits, who may use the card, cardholder responsibility for not adhering to the policy, and required documentation to make purchases, she said.

The policy also now includes a provision in which cardholders are required to acknowledge the policy by signing it.