What Are Adequate Controls Over Fire Company’s Cash Receipts and Disbursements?

New York fire company boards should establish policies and procedures to safeguard cash receipts and disbursements.

Cash Receipts and DisbursementsThe Board and Membership should:

  • Segregate the duties related to cash receipts and disbursements or provide mitigating controls such as requiring at least two individuals to count and certify the money collected at fundraising events.
  • Require someone other than the Treasurer to verify that money collected and amounts recorded by the third-party vendor are deposited.
  • Ensure that someone other than the Treasurer reviews the bank statements and canceled check images periodically to ensure only approved, legitimate Company disbursements were actually paid.
  • Establish policies and procedures governing the use of credit cards and gas cards including who is authorized to use the cards, the types of purchases that are allowable, credit limits and requirements for adequate documentation to support each charge.
  • Ensure all disbursements for purchases are for proper Company purposes and adequately supported.
  • Provide adequate controls over fundraising revenues such as requiring that the individuals who counted the cash certify the cash collected or using press-numbered receipts or tickets, when practical.

The Treasurer should:

  1. Report all receipts collected and deposited at the regular meetings to the Membership.
  2. Deposit all money received in a timely manner
  3. Include the number and price of the items sold in the fundraising event reports

The Secretary should ensure that the meeting minutes contain all receipts collected and deposited and adequate information regarding the bills approved by the Membership, such as a list of approved bills, check numbers, vendor names and amounts to be paid.

Contact attorney Robert Friedman at 716-542-5444 if your fire company or fire department needs policies for controlling cash receipts and disbursements.

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