Fairview Fire District 258 Violet Avenue Poughkeepsie, NY 12601 Office: (845) 452 7453 Station: (845) 452 8770 Fax: (845) 452 0552 Introduction Disbursement Policy & Procedure In order to ensure that tax dollars are spent efficiently, it is essential that a thorough, deliberate, and complete review of claims submitted to the Fireview Fire District ( District) for payment be conducted by members of the Board of Fire Commissioners ( Board ) of the District to determine that payment by the District is appropriate before payments are authorized. The procedure to make that determination is called an audit. An effective audit of claims is often the last line of defense for preventing unauthorized, improper, or fraudulent claims from being paid. This Policy/Procedure was developed by the Fairview Fire District Board of Fire Commissioners via the Fiscal Committee consisting of four members (the Chief, the Treasurer and 2 seated commissioners) and based primarily on a document dated July 2013 published by the Office of the New York State Comptroller entitled "Improving the Effectiveness of Your Claims Auditing Process" and can be found on line at http://osc.state.ny.us/localgov/pubs/lgmg/claimsauditing.pdf. The Fiscal Committee has also sought advice directly from the Comptroller's office in developing this Policy and Procedure. The Fairview Fire District Board of Fire Commissioners is responsible for the audit of claims against the district. The audit of claims is a control procedure executed directly by the Board. This Disbursement Policy/Procedure has been tailored to provide guidance to present and future commissioners in conducting District Claims Auditing and is written to outline the details specific to Fairview Fire District's disbursements/claims. It is extremely important that all current commissioners and new commissioners once elected and sworn in review this document in addition to reviewing the New York State Comptroller's publication noted above. For further guidance and in conjunction with this document all current commissioners and new commissioners should also review the District's Procurement, Credit Card and Petty Cash policies as they relate to purchases & as to how these policies relate to the disbursements and the auditing of claims. 4/1/2014 Page 1 of 13
This document should be reviewed at least annually by the Fiscal Committee. Updates may be provided in the interim to the Board as necessary (i.e. as any new information becomes available to the Fiscal Committee or is issued by the Office of the State Comptroller. Claims A claim basically is a demand presented for the payment of money due for goods that have been delivered or services that have been provided. Vouchers The Fairview Fire Districts utilizes vouchers as an internal control to track claims. [See Appendix A Forms and Samples]. All payment claims must have a voucher attached to them. Each Voucher must have attached to it before auditing the following: Dated Original Itemized Invoice stamped as received and the date received whose total matches the amount being claimed on the voucher. [If more than one invoice is to be paid with one voucher representing the total all original invoices and their supporting documentation must be attached. [Invoices showing past due amounts without the original invoice being attached to the voucher will not be approved for payment.] Supporting Documentation that confirms that the goods were actually received or services rendered signed off on with a date by the employee or staff member receiving the goods or services. Auditing of Claims by the Board of Fire Commissioners Each Commissioner as a part of the governing board of the District is responsible as part of their official duties for auditing all claims. Per the office of the State Comptroller there will be two types of claims the Board will be auditing each month before the monthly Board of Fire Commissioners Regular Meeting which is routinely held the first Tuesday of each month. Before & at each monthly Board meeting the Board will be provided with two abstracts of claims to be approved by a Resolution of the Board in what the District terms an "Approve All Bills" Motion/Resolution. Each type of Claim will be provided separately in a folder with its corresponding abstract the day before the meeting in order to allow each commissioner to conduct a detailed review of the abstract along with the corresponding vouchers and supporting documentation prior to the meeting and the "Approve All Bills" motion. Each commissioner should set aside time before the monthly meeting to conduct their audit. 4/1/2014 Page 2 of 13
Types of Claims to be Audited Routinely all claims must be audited by the board prior to disbursement of district funds/payment. However, the Office of the State Comptroller allows certain disbursements to be made in advance of audit under the condition that they are audited subsequently and approved at the next regular meeting of the Board. In the Fairview Fire District claims allowed to be paid in advance of audit are the following as routinely approved by the Board of Fire Commissioners at its annual January Organizational meeting: lights utilities postage & freight bond payments re occurring salaries phone charges health insurance any other bills that will incur finance charges. Two Types of Claims to be audited immediately prior to each Monthly Board Meeting and approved at each monthly Board Meeting Claims Paid (District Funds Disbursed] in Advance of Audit. Claims Paid (District Funds to be Disbursed) upon Audit. The internal procedure/control for each of these types of claims is further described in Procedure Portion of this document which follows. 4/1/2014 Page 3 of 13
Disbursement Procedure Board by resolution may authorize payment of bills in advance of audit at the January Organizational meeting. These bills include: lights & utilities postage & freight, bond payments, re occurring salaries, phone charges, health insurance and any other bills that will incur finance charges. These advanced prepayments must be presented at the next regular Board meeting for audit and approval by the Board. Procedure: 1. The secretary shall provide an itemized list of all bills paid in advance of audit for the Board audit. This list shall contain the name of the service provider, date paid, check number, account number and the amount of the bill. 2. Each Board member shall review each bill with the supporting documentation that should include an itemized statement, any signed receipts of goods or services purchased, before signing the attached voucher. 3. The Board shall formally approve the bill with a separate Bill pay motion and the itemized list of all bills shall be included in the minutes of the Board meeting for the month following the month in which the bills were paid in advance of audit. Authorized Disbursements for Monthly Bills This procedure by Board audit and resolution will authorize the Treasurer to pay all approved bills. This procedure shall not be applicable to claims for the payment of payment of bills that were paid in advance of audit at the January Organizational meeting. These bills include: lights & utilities postage & freight, bond payments, re occurring salaries, phone charges, health insurance and any other bills that will incur finance charges. Procedure: 1. All receipts or bills must be signed and dated for the goods or service purchased. 2. The secretary shall attach a voucher to each bill with the supporting documentation that should include an itemized statement, any receipts of goods or services purchased along with signed receipts. 3. Each Board member shall audit the itemized bills and supporting documentation, before signing the attached voucher. 4. The secretary shall provide an itemized list of all received bills to the Board in advance of the Board meeting for the month in which the bills are to be paid. This list shall contain the name of the service providers, date entered, account number and the amount of the bill to be paid in the current month. 5. The Board shall formally approve all bills with a separate Bill Pay motion and the itemized list of all bills shall be included in the minutes of the Board meeting. 4/1/2014 Page 4 of 13
Criteria for Auditing Claims This section is taken directly from the document dated July 2013 published by the Office of the New York State Comptroller entitled "Improving the Effectiveness of Your Claims Auditing Process" and can be found on line at http://osc.state.ny.us/localgov/pubs/lgmg/claimsauditing.pdf. It is offered here for ease of reference as it pertains to District Claims as outlined in this "Disbursement Policy and Procedure Document", Each Commissioner shall take note and follow this criteria to the best of their ability in order to ensure the protection of Taxpayer funds. It is the intent of the Fairview Fire District and its Board of Fire Commissioners to follow this criteria to the best of its/their ability as it applies to the District's disbursements. All Commissioners should also review the following sections in the aforesaid NYS Comptrollers document as to "Problem Claims" and "Red Flags" (Appendix B ) Conclusion As a local government entity, the Fairview Fire District and its Board of Fire Commissioners seeks to ensure to the best of their ability strong oversight over Disbursements. Thereby ensuring taxpayer confidence and by doing so in compliance with the New York State Comptroller's guidelines. Once this document is adopted by the Board of Fire Commissioners, it is the intention of those creating this document to also provide a guide for all current and future commissioners. It is anticipated that all current commissioners will receive (and sign for) a copy of this document to be retained by them and used as guide as they conduct the auditing process each month and that future commissioner will be provided with a copy of this document which they will sign for and utilize in conducting audits once they assume office. 4/1/2014 Page 5 of 13
Appendix A Forms and Samples 4/1/2014 Page 6 of 13
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Appendix B Comptrollers Criteria for Auditing Claims 4/1/2014 Page 10 of 13
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