NASHVILLE, Tenn. — Volunteer fire departments are often staffed and led by unpaid firefighters. Despite not collecting a paycheck, the Tennessee Comptroller of the Treasury said they still need to implement accountability and transparency policies, including filing reports with the state.
The office said Monday it created a manual to help fire departments implement those financial management policies. It also created a 45-minute training video to lead fire departments through the financial reporting process and how they can improve department accountability.
"These volunteer fire departments receive funding from citizens and local governments and have a fiduciary responsibility to ensure these funds are used to fulfill their role of providing fire protection services to the citizens of Tennessee," the manual said.
It recommends volunteer fire departments take steps to reduce the risk of financial mismanagement from happening. For example, it said departments can separate volunteers' duties to reduce the risk of fraud and give managers oversight over bank statements and other documentation.
It also recommends departments teach volunteers about when a person or organization should be charged for a service, and make sure to create detailed invoices whenever they give services.
The manual also includes recommendations on how to handle donations, grants and fundraising efforts. There are sample forms departments can use as part of fundraiser ticket policies, as well as steps on how to safeguard capital assets.
Volunteer fire departments can also find steps on reporting possible fraud and a list of helpful links about financial management in the manual.
The Comptroller's Office also created guides on submitting financial reports to the state. It said the reports should cover the year ending on June 30 and must be submitted by Dec. 31 after the reporting period ends.
