Mattituck Fire District officials say they have already taken corrective steps in response to a state audit that found widespread failures in how the district reviewed and approved spending before public funds were paid out.
The audit, released late last month by the New York State Comptroller’s Office, examined the district’s claims auditing process from Jan. 1, 2023, through June 30, 2024, and concluded that the Board of Fire Commissioners did not consistently conduct a “thorough, deliberate or effective” review of claims prior to payment.
Auditors concluded that weaknesses in the district’s financial controls placed public funds at risk. During the audit period, the Mattituck Fire District issued 890 non-payroll disbursements totaling about $1.5 million. Auditors reviewed a sample of 135 claims worth $194,478 and determined that 90 of them — 67 percent — should not have been approved as submitted because they lacked sufficient documentation or contained discrepancies.
The most common issue was the absence of proof that goods or services were actually received. Auditors found that 77 claims totaling $108,754 had no documentation confirming delivery or completion of work. In one example, a $17,250 payment for security equipment installation was approved without any indication that the equipment had been received or installed.
Auditors also found that 40 claims totaling $67,130 had missing or incorrect budget account codes, limiting the board’s ability to confirm that sufficient appropriations were available at the time of payment. Eleven additional claims lacked itemized invoices, preventing commissioners from determining whether purchases were valid district expenses.
The audit further identified improper charges totaling $331 in sales tax, despite the district’s tax-exempt status, along with late fees and unsupported credit-card charges. Three payments totaling $1,450 were flagged as improper expenditures, including a $225 purchase from a flower shop owned by a board member’s wife and a $1,100 reimbursement to a department member for a damaged personal cellphone.
District officials disputed some of those findings, but comptroller officials said required conflict-of-interest disclosures were not documented and that a board member with a family connection to the vendor participated in approving the payment.
In a separate finding, auditors reported that the district treasurer paid 11 claims totaling $28,833 either before board approval or without board authorization altogether. Nine of those claims, totaling $23,651, were never included on a board-approved warrant or resolution. Although the payments appeared to be for district purposes, auditors said bypassing the approval process increased the risk of error or misuse of funds.
In a written response included with the audit, district officials said they acknowledge the findings and recommendations and noted that some issues “have already been addressed and corrected.” The also disputed some of the audit’s claims.
Officials said they have revised internal procedures to strengthen documentation and oversight of claims, including centralizing all deliveries at the district office, retaining packing slips and confirming receipt of goods or services before invoices are marked “OK to pay” and forwarded to the treasurer. Voucher forms have also been updated to include designated signature areas for both the treasurer and board members, and commissioners are now provided with more detailed accounting reports showing budget codes for each expense
The district also outlined changes to travel, credit card and refreshment reimbursement practices. Officials said standardized travel forms are now required, with receipts and written summaries attached to conference expense claims, and federal General Services Administration meal rates included for reference. Credit card charges must now be fully documented, recurring charges have been restructured to reduce billing issues and refreshment reimbursements must include lists of attendees. While the district said it does not plan to require GSA lodging rates, officials said they will continue seeking the most cost-effective options available.
The district also disputed that three claims totaling $1,450 were “invalid district expenditures,” including an $1,100 reimbursement to a department member for a damaged cell phone, and $125 in foreign transaction fees.
The comptroller’s office issued 10 recommendations and required the Board of Fire Commissioners to submit a corrective action plan within 90 days. Under state law, implementation must begin by the end of the next fiscal year, and the board is encouraged to make the plan available for public review.