State Weighs In On NB FD Audit

The New York State Comptroller’s Office released the following audit about the North Brookfield Fire Department.

Department officials did not adopt a written investment policy or establish procedures to govern the investment of department funds or provide a framework to help ensure funds were invested safely and prudently, and that the department’s resources were not exposed to unnecessary financial risk.

During the audit period, the department invested $77,200 with a local tax preparer/insurance agent who issued promissory notes that promised an 8% annual return.

The individual whom the department invested their funds with subsequently filed for bankruptcy in April 2023 and was convicted of operating a Ponzi scheme involving more than $50 million.

Although the department recovered $6,442 through the bankruptcy proceedings, it lost $45,758 of its principal investment and never received a return on the investment.