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The Crossroads Journal

State audits Lone Peak Fire Department

By Linda Petersen
By Linda Petersen
The Office of the State Auditor recently released a review of the Lone Peak Fire Department. The audit was performed after the auditor's office hotline received "numerous allegations of impropriety regarding various aspects of Lone Peak Fire Department," according to a letter sent to Alpine Mayor and Board Chair Sheldon Wimmer included with the report which was released August 29.

Cedar Hills Mayor Gary Gygi, who is vice chair of the district, told his city council that before the state auditor got involved, the district had conducted its own internal audit after "a former employee made a lot of allegations, some of them outrageous." The internal audit did not substantiate the allegations but he felt like they should go "the extra mile" and requested the board contact the State Auditor's Office, he said.

The review, which covered July 2013 through March 2017, found no criminal wrongdoing but produced six findings that the auditor's office said would "help strengthen financial management of the LPFD."

1. The review recommended that the board, executive director and fire chief improve their oversight and be more proactive in setting policies, procedures and internal controls over LPFD's activities. It was reported that employees were allowed to work on personal matters while on duty after regular business hours - a common practice the reviewers said but one that could encourage "the perception that employees are able to benefit improperly while on duty."

2. The review also recommended that the district adopt a code of ethics, perform a self-assessment and implement industry best practices.

3. The review said that the LPFD failed to strictly adhere to policies and retain adequate supporting documentation for the sale and purchase of vehicles sold to employees. The LPFD also did not get the approval of the executive director or his/her designee or document the transaction sufficiently when it purchased a vehicle from the fire chief, it said.

The review recommended that the district follow its own "Disposition of Surplus Property" policy and retain all records according to its retention schedule.

4. The review said the district exhibited inadequate internal control over credit cards, has not developed a policy governing credit card use or had independent review of the treasurer's credit card, insufficient evidence of approval by the executive director or his/her designee and instances of use by someone other than the cardholder.

The review recommended the district retain original documentation of credit card purchases, only allow cardholders to use district credit cards and discontinue purchasing gift cards with credit cards (or find a way to track them better).

5. The review said the district lacks adequate policies over certain high-risk areas for waste and abuse, including credit card use, gifts and donations, employee incentive programs, meal purchases, continuing education, procurement policy and cell phone plans.

"The executive director and Fire Chief have not established a process to periodically review and update policies as necessary. The lack of policies increases the risk that funds may be used inappropriately," it said.

6. The report claims the district has increased risk by using credit cards versus purchase cards which reviewers say have enough controls to mitigate some of these risks.

7. The district allows automatic payroll deductions for the Lone Peak Fire Association, an employee fund which purchases optional items (e.g. condiments, small appliances, etc.) for use by employees at the fire stations.

"We believe that such an arrangement may imply that the district endorses or oversees the association, ensuring the proper use of these employee funds," the report said, and recommended the district cease the automatic deductions and allow the employees to contribute to the fund directly.

Wimmer responded on behalf of the board to the auditor's office in an August 25 letter which said, "We have reviewed the draft report and have determined to follow all of the recommendations outlined in the report. Implementation has already begun. In addition, it would be beneficial if there any "best practices and model policies" that could be provided to assist the district in addressing the concerns and moving forward."
The community news source for Eagle Mountain Utah, Saratoga Springs Utah, Lehi Utah, American Fork Utah, Highland Utah, Alpine Utah, and The Cedar Valley, including Cedar Fort Utah and Fairfield Utah. Copyright 2024 The Crossroads Journal LLC. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
 


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