Summary of Report 95-113

Report Number 95-113

As of the year ended August 31, 1994, the Fire Fighters' Relief and Retirement fund had total assets of $15.6 million and paid out approximately $720,000 in retirement benefits.

Our consideration of the internal accounting controls related to the control environment, investments, cash disbursements, and cash receipts disclosed no reportable conditions that involve a material weakness.

The Commission deviated from its procedures for cash receipts for a period of three months due to staff vacancy. While the deviation from procedures was only for a short period, any deviation from established internal control procedures creates a risk that errors, mistakes, and/or fraud may occur and not be detected in a timely manner.

Documentation showing that reconciling items for investments are properly identified and investigated was not prepared. In addition, an income-anticipation schedule to accurately forecast dividends revenues due is not used. These two omissions relating to investment accounting increase the risk that material misstatements, errors, and omissions can occur and not be detected in a timely manner.

The improper accounting and reporting of certain expenditures related to professional fees, FICA liabilities, cash in State Treasury, and the use of "straight-line" instead of the "effective interest" method of amortization for discounts and premiums could lead to material misstatements in the financial statements.

Contact the SAO about this report.

Download the Acrobat version of this report. (.pdf)

If you prefer an HTML version, follow this link to an Adobe site which converts PDF files to HTML.