Audit of the Department of Fire Services (DFS)

This is a Massachusetts State Auditor performance audit of the Department of Fire Services covering July 1, 2016 through December 31, 2018.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2016 through December 31, 2018.”

Auditors reviewed how DFS handled inventory, including purchases, disposals, and physical inventory reports, and how it handled earmarked funds in its state budget.

“In this performance audit, we examined DFS’s inventory process, including new purchases valued at $1,000 or greater, disposals, and the annual physical inventory report, as well as earmarked funds allocated under DFS’s annual state budget.”

If DFS does not track assets properly, equipment can be lost, duplicated, or disposed of improperly, which can waste public money.

“This could lead to unknown losses of assets, as well as duplicate purchases.”

For residents, the issue is basic accountability: public equipment and public funds should be tracked so they are used for fire services, safety education, and related public purposes.

“DFS’s inventory assets are tangible property of the Commonwealth used for daily operations and consequently need to be secured and managed by the organization.”

The audit found two main problems: DFS did not properly manage fixed assets, and it did not always collect enough documentation for earmarked spending.

“DFS did not collect appropriate documentation to support expenditures for earmarked funds.”

The auditor recommended more training, better disposal procedures, complete annual inventory checks, quarterly reconciliations, and written policies for earmarked funds.

“DFS should develop policies and procedures for the administration of earmarked funds, including the documentation required to ensure that funds are used for their mandated purposes.”

The audit is significant because DFS received tens of millions of dollars in state appropriations and handled millions more in earmarked funds during the period reviewed.

“During our audit period, earmarks totaled $5,258,600, $4,730,000, and $6,236,000, for fiscal years 2017, 2018, and 2019, respectively.”

“Fixed assets” means longer-lasting property such as buildings, furniture, equipment, and infrastructure that cost at least $1,000.

“Fixed assets are defined in the Comptroller’s Acquisition Policy and generally include all land and any buildings, furniture, equipment, and infrastructure with a useful life of more than one year and an original cost of $1,000 or more.”