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ALBANY---The state comptroller's office has released a model request for proposals (RFP) for fire districts in response to a new state law that will eventually require fire districts with revenues of more than $200,000 to obtain an annual independent audit.
Several new laws were enacted in 2006 to strengthen oversight of fire districts and fire companies in New York State. In addition to annual independent audits, the legislation requires fire districts to hold annual budget hearings, adopt a code of ethics, modify travel rules and comply with new requirements for establishing capital reserve funds. The new legislation also requires fire district commissioners who take office after Jan, 22, 2007 to get training on their legal, financial and ethical responsibilities.
"New Yorkers spend more than $1.4 billion on fire protection each year," Comtroller Alan Hevesi said. "These new laws ensure greater accountability and transparency for how fire districts and companies operate and provide an opportunity for the public to have a voice in the process."
"Our association is committed to helping fire districts around the state operate effectively so they can respond to the safety and fire protection needs of their communities," said Randall Rider, president of the Association of Fire Districts of the State of New York. "This new legislation contains practical ways to improve the fiscal practices of fire districts and ensure that the public is engaged in the process. We look forward to continuing to work with Comptroller Hevesi and his staff on implementing this legislation and ensuring that our members have the training and knowledge they need."
Under the new auditing requirement, fire districts must procure an independent auditor through a competitive process using an RFP and limit the contract to five years. The 17-page model RFP from OSC provides fire districts with detailed information on what is required in the audit and specific information that should be reviewed. Copies of the completed audit must be provided to the town boards, OSC and the fire district commissioners within 180 days of the end of the fiscal year audited.
The new law on audits will be phased in over a three-year period. Fire districts with annual revenues of $1 million or more must obtain an independent audit starting in 2007 for the 2006 fiscal year. Those with revenues between $500,000 and $1 million must meet the requirement beginning in 2008, and fire districts with revenues of at least $200,000 in 2009. Prior to the new auditing requirement, state law did not specifically require fire districts to obtain an outside audit. The new auditing requirement does not apply to fire districts with revenues under $200,000. In these fire districts, the treasurer is required to present the district's financial records to the commissioners annually. The commissioners may conduct their own audit or retain an accountant to audit the records.
Fire companies with annual revenues greater than $200,000 that contract with a municipality to provide fire protection services are also required to obtain independent audits.
OSC is also responsible for overseeing training to fire district commissioners and providing guidance on how to comply with the new requirements. A teleconference co-hosted in October with the Association of Fire Districts of the State of New York regarding the new legislative requirements attracted 1,300 participants from around the state. OSC also provided training at the Association's annual mid-year workshop in early November.
To review the new laws, see http://www.osc.state.ny.us/localgov/fdreform/handout.pdf
For a model RFP, see http://www.osc.state.ny.us/localgov/fdreform/rfp.pdf
Click here for additional information on the new laws, including answers to frequently asked 11-17-06
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© 2006 North
Country Gazette
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