New Comptroller guidance issued for volunteer fire departments

The Tennessee Comptroller’s division of Local Government Audit has launched a new resource designed to improve and emphasize the importance of good financial management within Tennessee’s hundreds of volunteer fire departments.

“While volunteer fire departments provide essential services across the state, they are also prone to financial troubles including fraud, waste, and abuse,” said Comptroller Jason Mumpower. “Many of these departments have been the subject of fraud investigations by my Office.”

The first edition of the Volunteer Fire Departments Financial Reporting and Procedures Manual offers clear guidance to developing policies and procedures that help mitigate risks around activities such as fundraising, purchasing, the sale of surplus property, grant expenditures, and many more.

The new manual also reminds each volunteer fire department that receives government money of the requirement to file an annual financial report with the Tennessee Comptroller of the Treasury and each local government body from which the department receives appropriations.

In addition to the new manual, the Comptroller’s Office has also created a training video to help volunteer fire departments implement financial best practices and recommended internal controls.

“Although volunteer fire departments are often overseen and staffed by unpaid volunteers, they still have a fiduciary responsibility to ensure money is used properly,” said Comptroller Mumpower. “This manual establishes a basic level of financial management that will improve accountability and integrity within these incredibly important organizations. It’s essential reading for any volunteer fire department in Tennessee.”

To view the new volunteer fire department resources, go to tncot.cc/vfd