South Whitehall commissioners have approved a plan to review financial statements of the four volunteer fire companies serving township residents.

Proposals from Buckno Lisicky and Co., certified public accountants, were presented June 19 for accounting services at Cetronia, Greenawalds, Woodlawn and Tri-Clover fire companies at a combined cost of $20,000.

Buckno Lisicky will look at the assets, liabilities, related statements of support, revenue, expenses, and changes in net assets of the fire companies.

This review, not an audit, which would be substantially greater in scope and cost, includes applying analytical procedures to financial data and making inquiries of company management.

Township Manager Jon Hammer explained the purpose of the procedure.

"We want to make sure all township funds are spent wisely," Hammer said. "This is the first time we are doing this."

Manly Offutt Jr., former treasurer of the Greenawalds Fire Company, had some questions about the proposed review.

"Greenawalds Fire Company has no assets, so what are they reviewing?" Offutt asked.

Commissioner Glenn Block said the accountants will focus on money coming in and going out.

"Are they going to look at how much we spend for a Christmas party?" Offutt asked. "I don't agree with that."

Block, a CPA, responded to Offutt.

"We want to review the total revenue, expenses, and income of the fire companies not just what comes from South Whitehall but from all sources," Block said. "We want to look at bank statements and make sure all things agree."

Commissioners turned their attention to an internal controls consulting report prepared by Buckno Lisicky.

The purpose of the study was to identify and evaluate existing internal controls of the township and the South Whitehall Authority and to develop policies to prevent future fraudulent activities.

The document specifies management is responsible for the detection and prevention of fraud and other irregularities.

An employee who suspects dishonest or fraudulent activity must notify the township manager immediately.

The proposed fraud prevention policy includes details relating to mandatory vacations, job rotation, cash disbursements, signing and handling of checks, billing, purchasing and more.

The draft document suggests creation of township finance and audit committees.

"Buckno Lisicky did a great job of coming up with these recommendations," Block said.