An audit by the New York State Comptroller found that the Town of Gorham improperly distributed fire insurance tax proceeds.
The review examined how the town handled foreign fire insurance tax funds between January 2023 and July 2025.
Auditors said town officials did not follow state law when allocating $11,401 in funds collected in 2023 and 2024.
The report found a bookkeeping error led to incorrect distribution formulas, including payments to a fire district that was not eligible to receive the funds.
As a result, one fire department received $681 more than it should have, while another received $4,076 less than its proper share.
Auditors also found the fire district received $3,395 it was not entitled to.
The report said town officials did not review the calculations before approving payments and lacked written policies for distributing the funds.
Officials agreed with the findings and said they plan to take corrective action.
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