FULTON COUNTY, Ark. (KAIT) – Three volunteer fire departments in Northeast Arkansas have vowed to keep better records after an audit found they had not used disbursed public funds properly.

Following a request from the 16th Judicial District Attorney’s Office, the Arkansas Legislative Audit reviewed the transactions of the Morriston, Glencoe and Nine Mile Ridge Volunteer Fire Departments in Fulton County.

ALA reviewed bank statements, invoices and other information provided by the Departments for the period January 1, 2020 through September 30, 2022.

While public funds were “correctly deployed,” the audit found undocumented disbursements totaling $10,599; $6,805; and $11,057 at the Morriston, Glencoe and Nine Mile Ridge departments, respectively.

“In addition, inadequate accounting and internal control deficiencies were noted for all three departments,” the audit noted.

According to the report, the ALA investigation revealed the following deficiencies at all three departments:

Invoices are not always retained to support payments

Equipment lists were not maintained, periodic inventories were not conducted, and equipment was not marked or otherwise identified as department property

Ledgers were not prepared for all bank accounts and did not reconcile with bank activity as all transactions were not recorded

Financial data was not sufficiently segregated due to insufficient staff numbers, and departments did not conduct adequate compensation checks

The boards did not provide sufficient financial oversight and minutes were not available for all board meetings.

ALA recommended that Fulton County implement a monitoring and reporting process for volunteer fire departments that receive county funding.

“If departments fail to submit the required monthly data, the department’s distribution of funds will be withheld,” the ALA recommendations state. “Additionally, if the county treasurer believes a department is spending dividends inappropriately, future payments may be withheld.”

The report has been forwarded to the public prosecutor and the public prosecutor.

In separate letters to the ALA, all three fire departments pledged to address the problems and improve their record-keeping.

“We’re going to make sure everything is better documented,” said Morriston Fire Chief Matthew Mask.

Catherine Ann Reynolds, treasurer of the Nine Mile Ridge chapter, echoed Mask’s pledge.

“Our future plans are to correct the way we keep records,” Reynolds said. “We plan to restructure our way of accounting and implement a review board.”

Lisa Langevin, secretary/treasurer of the Glencoe Fire Department, said its board would address “the issues of inadequate records” and that Chief Jeff Tatum would complete an inventory of all equipment.

“If we need to address additional issues, we welcome any recommendations you may have to offer,” Langevin concluded.

To read their full response, along with the ALA revision, click here.

To report a typo or correction, please click here.

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