FULTON COUNTY, Ark. (KAIT) – Three volunteer fire departments in Northeast Arkansas have vowed to keep better records after an audit found they were not spending distributed public funds as required.

At the request of the 16th Judicial District Attorney, the Arkansas Legislative Audit reviewed the operations of the Morriston, Glencoe, and Nine Mile Ridge Volunteer Fire Departments in Fulton County.

ALA reviewed bank statements, invoices and other records provided by departments for the period between January 1, 2020 and September 30, 2022.

The audit found undocumented payments totaling $10,599 despite public funds being “properly deposited”; $6,805; $11,057 in Morriston, Glencoe and Nine Mile Ridge departments, respectively.

The audit stated, “In addition, inadequate financial records and internal control deficiencies were identified for all three departments.”

According to the report, the ALA investigation revealed the following deficiencies in 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 labeled or otherwise identified as department property

Books were not prepared for all bank accounts and could not be reconciled with bank activities as not all transactions were recorded

Due to insufficient staff numbers, financial duties could not be adequately separated and departments did not implement adequate compensatory controls.

Boards did not provide adequate financial oversight and minutes of all board meetings were not available.

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

“If departments fail to submit required monthly records, the department’s distribution of funds will be suspended,” the ALA recommendations stated. “Additionally, if the county treasurer believes a department has spent distributions improperly, future payments may be withheld.”

The report was forwarded to the prosecutor’s office and the chief prosecutor.

In separate letters to the ALA, all three fire departments vowed to address the problems and improve recordkeeping.

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

Nine Mile Ridge department treasurer Catherine Ann Reynolds echoed Mask’s remark.

“Our future plans are to refine the way we keep records,” Reynolds said. “We plan to restructure our bookkeeping and create a review board.”

Glencoe fire department secretary/treasurer Lisa Langevin said the board will address “concerns regarding inadequate records” and Chief Jeff Tatum will complete an inventory of all equipment.

“If we need to address additional issues, we would welcome any advice you might offer,” Langevin concluded.

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