Wednesday, 23 November 2011 21:25 Bob Balgemann
Stephanie Lombardi and Carla Paschal of Sikich LLP told the district’s board of trustees Nov. 15 they found problems with the way money was being spent and offered a series of recommendations for correcting those difficulties.
Sikich was hired to provide a snapshot of how the district was faring financially after trustees determined the squad had not received a financial audit for a number of years. Sikich representatives will prepare a follow-up report with recommendations, possibly in time for the Dec. 20 meeting.
Among the irregularities were purchases being made without the usual invoices as documentation. Lombardi said she found that in six of 17 purchases made during 2009 and in 6-of-9 transactions from 2010.
It also was unclear initially… if annual financial reports had been filed with the state Comptroller’s Office for 2009, 2010 or 2011. She said she met with the accountant Oct. 21 and was told the three years worth of reports had been filed “the night before our meeting.”
During the meeting both Costanza and Eaton mentioned being unable to get financial records from the accountant. Costanza said afterward those records would “give us information we need so we can determine who checks were written to, both for the squad and vendors. Now, the records only say ‘payroll,’ not individual names.
He added that W-2 reconciliations were not available beyond the current year. ….
In addition to providing recommendations, Lombardi said she and Paschal would do some budget to actual spending analysis for 2009, 2010 and 2011. The rescue squad district’s fiscal year runs from May 1 to April 30.
Lombardi said what she and Paschal were presenting was a “consulting engagement,” not an audit. There isn’t a cost estimate yet for that report, according to Costanza.
Capron Rescue Squad covers a 144-square-mile area of northern Boone County, including the villages of Capron, Poplar Grove, Caledonia and Timberlane, along with unincorporated areas such as Candlewick Lake.
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