The Big Indian-Oliverea Fire District’s Board of Fire Commissioners failed to provide adequate oversight of the district’s financial operations, according to an audit by the New York State Comptroller’s Office.

The audit was issued Sept. 25 and found deficiencies in the board’s financial policies, budgeting practices, review of payments, administration of its Length of Service Award Program (LOSAP), financial reporting and compliance with required training.

The comptroller’s office found that the board had not adopted adequate policies covering capital planning, claims auditing, fund balances, LOSAP administration and multiyear financial planning. Auditors also found that the board did not prepare annual budgets that met statutory requirements or ensure that accounting records were adequately maintained and required Annual Financial Reports were filed on time.

The audit found that the board did not properly audit all the claims reviewed by auditors, totaling $54,022, before payment.

The comptroller’s office also found that commissioners did not complete mandatory financial training within the required 270 days of taking office, as required by state law.

The district’s budgeted appropriations for 2024 totaled approximately $123,000, while its general and capital reserve funds totaled about $780,000 as of Dec. 31, 2024. During the audit period, the district treasurer paid 60 claims totaling $96,742. The district had 16 LOSAP participants in 2024.

In an Aug. 3 response to the preliminary audit report, Board Chairman Bryan D. Kelly disputed several findings while acknowledging shortcomings and outlining corrective steps.

The board said commissioners reviewed monthly bank statements and reconciliation reports but acknowledged they had not received monthly budget-to-actual reports. It said the district purchased upgraded financial software to enable those reports. The board also acknowledged sometimes missing deadlines for filing annual financial reports, while saying it had submitted reports for every year covered by the audit.

The board disputed the findings on claims auditing and LOSAP compliance. However, it acknowledged that some purchasing decisions lacked written documentation of efforts to obtain competing quotes and that some firefighter drill attendance records did not document the full duration of drills. The board said it would improve documentation and require written proof that drills lasted at least two hours before awarding LOSAP points.

The board also acknowledged that three of its five commissioners did not complete mandatory financial training within the required period. It said all commissioners have since completed the training.

The comptroller’s office issued 11 recommendations to strengthen financial oversight and accountability. The board is responsible for preparing a written corrective action plan addressing the findings and recommendations within 90 days of the report.

The full audit and the district’s response are available through the New York State Comptroller’s Office.

Note: The Big Indian-Oliverea Fire Company is not the same as the District.