Audit 362438

FY End
2024-12-31
Total Expended
$810,000
Findings
2
Programs
1
Organization: Lyons Fire District (NY)
Year: 2024 Accepted: 2025-07-17

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
571493 2024-003 Material Weakness Yes P
1147935 2024-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $810,000 Yes 1

Contacts

Name Title Type
CMDJJ4MJPT11 Meghan Nagel Auditee
3159464851 David V. Ditanna, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Lyons Fire District and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Government and Non-Profit Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. The amounts reported as Federal expenditures generally were obtained from the appropriate Federal financial reports for applicable program and periods. The amounts reported in the Federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the Fire District’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Fire District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Lyons Fire District and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Government and Non-Profit Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. The amounts reported as Federal expenditures generally were obtained from the appropriate Federal financial reports for applicable program and periods. The amounts reported in the Federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the Fire District’s financial reporting system.
Title: Note 2 - Indirect Cost Rate Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Lyons Fire District and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Government and Non-Profit Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. The amounts reported as Federal expenditures generally were obtained from the appropriate Federal financial reports for applicable program and periods. The amounts reported in the Federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the Fire District’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Fire District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. The Fire District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year.
Title: Note 3 - Rural Development Community Facilities Loans Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Lyons Fire District and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Government and Non-Profit Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. The amounts reported as Federal expenditures generally were obtained from the appropriate Federal financial reports for applicable program and periods. The amounts reported in the Federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the Fire District’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Fire District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. During the year ended December 31, 2022, Lyons Fire District received loan proceeds from the United Statements Department of Agriculture for the purchase of fire trucks. The balance outstanding on the loan as of December 31, 2024 totaled $810,000 which is represented on the Schedule of Expenditures of Federal Awards. As this loan has continuing compliance requirement from the USDA, it is included in the total federal awards expended.

Finding Details

Segregation of Duties Year ended December 31, 2024 Conditions and Criteria: The Lyons Fire District is a small organization with only one individual involved in the cash receipt and disbursement functions. In addition, this person performs general ledger record keeping and financial reporting functions. Cause: The Fire District is a small organization with a limited number of personnel. Effect: A fundamental element of an effective internal control system is the proper segregation of duties. Proper segregation of duties provides for a system of checks and balances and entails assigning responsibilities of authorizing and recording transactions among different people in the Fire District. A lack of proper segregation of duties increases the exposure to potential risk of error or fraud. Auditors’ Recommendation: The Fire District should continue to obtain involvement from the Board of Fire Commissioners in reviewing monthly financial reports and approving expenditures. In addition, the Fire District should consider having a Board member prepare or review bank reconciliations for each of its bank accounts. Fire District Response: We will continue to have the Board review monthly reports and approve expenditures. Further, the Fire District will consider having its bank reconciliations reviewed by a Board member.
Segregation of Duties Year ended December 31, 2024 Conditions and Criteria: The Lyons Fire District is a small organization with only one individual involved in the cash receipt and disbursement functions. In addition, this person performs general ledger record keeping and financial reporting functions. Cause: The Fire District is a small organization with a limited number of personnel. Effect: A fundamental element of an effective internal control system is the proper segregation of duties. Proper segregation of duties provides for a system of checks and balances and entails assigning responsibilities of authorizing and recording transactions among different people in the Fire District. A lack of proper segregation of duties increases the exposure to potential risk of error or fraud. Auditors’ Recommendation: The Fire District should continue to obtain involvement from the Board of Fire Commissioners in reviewing monthly financial reports and approving expenditures. In addition, the Fire District should consider having a Board member prepare or review bank reconciliations for each of its bank accounts. Fire District Response: We will continue to have the Board review monthly reports and approve expenditures. Further, the Fire District will consider having its bank reconciliations reviewed by a Board member.