A new audit has found that the Caledonia Volunteer Fire Department failed to address long-standing weaknesses in its financial oversight, raising concerns about mismanagement and potential misuse of funds.
The report, released in May by the Office of the New York State Comptroller, reviewed financial activities from January 2023 through early January 2025. It concluded that the department’s board of directors did not adopt basic financial policies, failed to review or approve all disbursements, and did not adequately safeguard revenue from rentals and fundraisers.
The findings mirror issues identified in a prior audit over a decade ago, which the board had failed to correct. “Because the Board did not implement adequate corrective action to address these findings, the same deficiencies exist,” the audit stated.
Among the most serious issues were the board’s failure to review 325 disbursements totaling $174,302, and its lack of oversight of $211,917 in deposits, which included rental and fundraising income. The audit also revealed that the treasurer did not maintain accurate records, failed to provide full monthly financial reports, and submitted a federal tax filing for 2023 that was inaccurate.
The audit found that disbursements often lacked itemized invoices, vendor names, or documented purposes, making it impossible to confirm that all expenses were for legitimate department activities. Hall rentals and fundraisers, including bar and food sales, also lacked proper supporting documentation. “Due to the lack of support for revenues, there is limited assurance that receipts were properly recorded and deposited,” auditors noted.
Additionally, the board never adopted required policies such as a code of ethics or a conflict-of-interest policy. The department’s bylaws were described as “inadequate” and contained “contradictory and unclear language.” Despite requirements, the financial review committee did not conduct annual audits of the treasurer’s records, allowing errors to go unchecked.
The comptroller’s office issued 11 recommendations, including adopting internal controls, requiring proper documentation for all financial transactions, and correcting the inaccurate tax filing. Department officials agreed with the findings and stated that corrective action had been initiated.
The report urges the board to develop and publicly share a corrective action plan within 90 days. Without these changes, the department remains at risk for financial mismanagement, liability, and waste of public resources.
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