Claims auditing policy

XYZ Fire District

Claims Auditing Policy

Adopted: __________________________

POLICY STATEMENT

The XYZ Fire District Board of Fire Commissioner (the Board) is responsible for auditing all claims and vouchers that come before the Board for payment. Town Law §§ 176 (4-a) (4-b) (4-c) and 177. Subject to certain exemptions, before any claim or voucher is paid by the Board, it must authorize and order such claims or vouchers to be paid, only after conducting a process of authorizing such payments. This process is called the auditing of claims.

Since the Board of Fire Commissioners is responsible for the auditing of claims and there is no statutory authority for the Board to create a claims auditing position, the responsibility falls upon the board members. A detailed and effective claims or voucher audit process is an internal control item that the Board of Fire Commissioners must not overlook to ensure the taxpayers that their tax dollars are spent efficiently and will assure that only proper claims are paid and the district pays only for authorized goods delivered and authorized services received.

EXEMPTIONS TO PRE-AUDIT PROCESS

Pursuant to statute, certain claims need not be pre-audited nor approved for payment by the Board of Fire Commissioners before they are paid. These are:

Fixed salaries of employees or compensation for services of officers or employees regularly engaged at agreed wages by the hour, day, week or year, principal of or interest on indebtedness, amounts due on lawful contracts for the purchase of water for fire protection or amounts required to be paid to the New York State Employees' Retirement System.

Certain claims, where the Board of Fire Commissioners has authorized the pre-payment of the claims prior to audit and that action is reflected in the Board minutes that they have been paid and approved after payment, such as payment of claims for public utility services such as electric, gas, water, sewer and telephone as well as payment of postage, freight and express charges.

Payment from the petty cash fund where properly itemized and verified or certified bills for materials, supplies or services furnished to the fire district for the conduct of its affairs , when the terms of the contract calls for payment upon delivery of any such materials or supplies or the rendering of any such services, not exceeding $250.00.

PRE-AUDIT PROCEDURE –TREASURER’S RESPONSIBILITIES

When a claim (invoice) is received, the Treasurer will date stamp the claim with the date of receipt. The Treasurer will then make the initial determination as to whether the claim should go to the Board members pre-audit, by preliminarily reviewing the claim, assembling all supporting documentation, including any resolution and policies applicable to the claim. For those claims that are received without a voucher, the Treasurer may prepare a voucher and audit sheet for pre-audit by the assigned member of the Board of Fire Commissioners. In the case of an individual making a claim, that individual is required to sign the claim voucher. All claims should be looked at carefully to ensure proper certification or verification. If all claims have the necessary supporting information, the Treasurer will enter the transaction in the accounting system, prepare an audit sheet for audit by the Board of Fire Commissioners, and enter the transaction in the accounting system.

If the fire district uses a computer system for recordkeeping of bills and invoices, and uses computer software in the audit of claims process. This fire district policy shall be modified accordingly.

If the...