An audit found serious problems with how the Arkport Joint Fire District tracked and reported its finances, raising concerns about oversight and accountability.
State Comptroller auditors said the district’s current and former treasurers failed to accurately record and report receipts and disbursements, leaving the board without reliable financial information and increasing the risk of waste or abuse.
Missing and inaccurate records
The audit reviewed district finances from January 2024 through September 2025, with additional review of annual reports going back to 2019.
During that time, the former treasurer failed to record or inaccurately recorded 13 receipts totaling $93,978 and 20 disbursements totaling $24,502. Auditors also found receipts and disbursements that were inaccurately reported or not reported at all.
The current treasurer also fell short after taking over in April 2025. Auditors found no records or reports prepared for nine receipts totaling $26,324 and six disbursements totaling $1,878 through the end of June.
In total, the district deposited $239,204 and paid out $145,516 during the main audit period, but auditors said the records did not reliably show how that money moved.
Years of late state filings
Auditors also found the district failed to file its required Annual Financial Reports with the state for five consecutive fiscal years. As of late September, some reports were more than five years overdue, with the oldest filing 2,038 days late.
All board members and the current treasurer told auditors they were unaware the reports had not been filed.
Because the treasurers did not prepare bank reconciliations and the board did not review monthly bank statements or conduct annual audits, the errors went undetected for years, according to the report.
Oversight breakdown
The audit said the lack of basic controls meant the board could not properly monitor the district’s finances. Auditors stressed that while they did not identify specific fraud, the weaknesses increased the risk of theft, waste, or abuse.
The district provides fire protection to parts of the towns of Hornellsville and Dansville and the village of Arkport. It operates primarily on property tax revenue.
District agrees to changes
District officials agreed with the audit’s findings and said they have begun making changes. In a written response, the board said it is adopting new policies, requiring monthly bank reconciliations, catching up on overdue financial reports, and committing to annual audits going forward.
The state comptroller’s office issued six recommendations, including improved recordkeeping, timely reporting, regular board review of bank statements, and annual audits of the treasurer’s work.
The board must submit a formal corrective action plan within 90 days and begin implementing changes by the end of the next fiscal year.
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