Frenchtown Fire auditors find sloppy record-keeping, especially on grants
by John Q. Murray
Auditors noted sloppy bookkeeping at Frenchtown Fire, especially relating to grants administered by former chief Scott Waldron, and suggested that the district significantly inflated the value of its wildland fire engines when reporting in-kind grant matching funds.
In one case, grant paperwork claimed 35 extra days of use for a wildland fire engine than district records supported, the audit report showed.
The executive summary, in a "broad brush characterization of the district’s accounting and financial reporting," concluded that the "financial records and files of the district have not been maintained with adequate discipline, organization, or attention to detail."
The grant files, the report said, were "poorly organized and missing documents such as the grant application; the grant award letter; signed contracts relating to the grant; the granting agency; the amount and duration of the award; clearly identifiable reimbursement requests with dates submitted and dates payments received; spreadsheets showing how amounts charged to the grant were calculated/derived; progress reports; grant closeout documents; etc. Some files contained documents that were clearly misfiled."
The Chronicle obtained a copy of the audit report requested by the board of trustees and conducted by Missoula County Auditor Barbara Berens.
Auditors raised significant questions about the Western States Wildland Urban Interface Grant Program, for work Frenchtown Fire conducted during 2005, 2006, 2007 and 2008.
The report noted that during 2005-2006 the staff personnel costs were tracked on a handwritten sheet, which did not match payroll records.
The district also appeared to inflate the cost of its wildland fire trucks, the report suggested.
"The same handwritten sheet provided a value of $146,860 per year for the district’s in-kind donation for district engine use; the engines were not identified, and no equipment use timekeeping records were provided as substantiation. The amounts were doubled to $293,760 per year (for a total of $587,440) when carried forward to the financial report and included the explanation 'Engines and Pickups NRCG (Northern Rockies Coordinating Group) rates/60days.' Using the NRCG hourly rate of $51 for an unoperated Type 6 engine, this equates to 12 engines for 60 days for 8 hours per day for each of the two years."
Frenchtown Fire did not have 12 Type 6 engines in the entire district during the 2005-2006 period.
For the 2007-2008 period, Former Chief G. Scott Waldron requested reimbursement of $26,484.58 in May 2008, while Operations Chief Steve Roy requested $82,539.23 in December 2008. "Several problems were noted with the documentation attached to the bills," the report noted.
Again, staff personnel costs did not match payroll records, and the district appeared to inflate the costs for its wildland fire engines, the report suggested.
"119 days (952 hours) were charged for a Type 6 Engine which accompanied crews to mitigation projects. The dates of service on the homeowner listing indicate 84 days (672 hours) worked. No equipment timekeeping records are available to substantiate the charge," the auditors reported.
Auditors also noted missing information relating to matching funds for a $12,500 grant that involved fuel mitigation work on the John Zunski property. The auditors discovered that several days of payroll records for the grant were missing from the Frenchtown Fire files. However, copies of the payroll records obtained from Missoula County showed that "the employees were working at the Zunski property for the days in question."
The auditors offered eight specific ways to improve the district's grant documentation.
Beyond its handling of grants, the auditors also recommended that the district change its financial reporting procedures, and start by training its workers to use the district's accounting software.
"The capabilities of the district’s accounting system have not been fully appreciated or utilized. As a result, the district has not benefited fully from the financial information and productivity savings which the system can provide," the auditors said.
Neither of the district's administrative assistants--Kylee Hatfield (July 2007 to July 2008), or Lisa Gottula (August 2008 to present)--"obtained comprehensive training on the Peachtree accounting system which the district uses. The situation has stabilized and markedly improved since Lisa Gottula was hired," the report stated.
The report offered seven detailed recommendations relating to the general ledger, five for accounts receivable, five for cash receipts, four for cash disbursements, five relating to district credit cards.
The report also made five detailed recommendations relating to the district's practice of contracting its engines and crews for wildland firefighting (see related story).
The full text of the auditors' report is available on the Chronicle website, http://www.clarkforkchronicle.com/art...7100725551 .
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Auditors noted sloppy bookkeeping at Frenchtown Fire, especially relating to grants administered by former chief Scott Waldron, and suggested that the district significantly inflated the value of its wildland fire engines when reporting in-kind grant matching funds.
In one case, grant paperwork claimed 35 extra days of use for a wildland fire engine than district records supported, the audit report showed.
The executive summary, in a "broad brush characterization of the district’s accounting and financial reporting," concluded that the "financial records and files of the district have not been maintained with adequate discipline, organization, or attention to detail."
The grant files, the report said, were "poorly organized and missing documents such as the grant application; the grant award letter; signed contracts relating to the grant; the granting agency; the amount and duration of the award; clearly identifiable reimbursement requests with dates submitted and dates payments received; spreadsheets showing how amounts charged to the grant were calculated/derived; progress reports; grant closeout documents; etc. Some files contained documents that were clearly misfiled."
The Chronicle obtained a copy of the audit report requested by the board of trustees and conducted by Missoula County Auditor Barbara Berens.
Auditors raised significant questions about the Western States Wildland Urban Interface Grant Program, for work Frenchtown Fire conducted during 2005, 2006, 2007 and 2008.
The report noted that during 2005-2006 the staff personnel costs were tracked on a handwritten sheet, which did not match payroll records.
The district also appeared to inflate the cost of its wildland fire trucks, the report suggested.
"The same handwritten sheet provided a value of $146,860 per year for the district’s in-kind donation for district engine use; the engines were not identified, and no equipment use timekeeping records were provided as substantiation. The amounts were doubled to $293,760 per year (for a total of $587,440) when carried forward to the financial report and included the explanation 'Engines and Pickups NRCG (Northern Rockies Coordinating Group) rates/60days.' Using the NRCG hourly rate of $51 for an unoperated Type 6 engine, this equates to 12 engines for 60 days for 8 hours per day for each of the two years."
Frenchtown Fire did not have 12 Type 6 engines in the entire district during the 2005-2006 period.
For the 2007-2008 period, Former Chief G. Scott Waldron requested reimbursement of $26,484.58 in May 2008, while Operations Chief Steve Roy requested $82,539.23 in December 2008. "Several problems were noted with the documentation attached to the bills," the report noted.
Again, staff personnel costs did not match payroll records, and the district appeared to inflate the costs for its wildland fire engines, the report suggested.
"119 days (952 hours) were charged for a Type 6 Engine which accompanied crews to mitigation projects. The dates of service on the homeowner listing indicate 84 days (672 hours) worked. No equipment timekeeping records are available to substantiate the charge," the auditors reported.
Auditors also noted missing information relating to matching funds for a $12,500 grant that involved fuel mitigation work on the John Zunski property. The auditors discovered that several days of payroll records for the grant were missing from the Frenchtown Fire files. However, copies of the payroll records obtained from Missoula County showed that "the employees were working at the Zunski property for the days in question."
The auditors offered eight specific ways to improve the district's grant documentation.
Beyond its handling of grants, the auditors also recommended that the district change its financial reporting procedures, and start by training its workers to use the district's accounting software.
"The capabilities of the district’s accounting system have not been fully appreciated or utilized. As a result, the district has not benefited fully from the financial information and productivity savings which the system can provide," the auditors said.
Neither of the district's administrative assistants--Kylee Hatfield (July 2007 to July 2008), or Lisa Gottula (August 2008 to present)--"obtained comprehensive training on the Peachtree accounting system which the district uses. The situation has stabilized and markedly improved since Lisa Gottula was hired," the report stated.
The report offered seven detailed recommendations relating to the general ledger, five for accounts receivable, five for cash receipts, four for cash disbursements, five relating to district credit cards.
The report also made five detailed recommendations relating to the district's practice of contracting its engines and crews for wildland firefighting (see related story).
The full text of the auditors' report is available on the Chronicle website, http://www.clarkforkchronicle.com/art...7100725551 .
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