The West Virginia State Auditor’s Office and the Logan County Prosecutor’s Office are working together to audit and investigate the financial activities of several Logan County fire departments. State Auditor John McCuskey announced the investigation in a statement this week.
Logan County Prosecuting Attorney David Wandling said several of the county’s fire departments are under criminal investigation for potential mishandling of money. According to a 2020 legislative audit report, $69,093.91 of the department’s funds in the county were found to be “not in compliance.” According to the audit report, more than $18,000 in purchases were for items not permissible under the Municipal Pensions and Protection Fund and the Fire Protection Fund state code, including a loan payment on a loan for “general bills” from a non-state bank account, improvements for fundraising purposes, a payment to the unnamed spouse of the former county’s fire chief, and other improper payments.
“The threat of fraud is ever-present. When large amounts of money are made available through federal funds to our towns and municipalities, such as the American Rescue Plan, there must be monitoring programs in place to protect against fraud,” McCuskey said. “Those funds are intended to go to a specific purpose and not for any personal use. If you are stealing from the government, you will be caught and prosecuted to the full extent of the law.”
McCuskey’s office has been conducting financial examinations of every volunteer fire department in West Virginia, offering free accounting software and tracking financial conditions in real time. In addition, the state auditor has offered every volunteer fire department the opportunity to participate in the State Purchasing Card program which is monitored daily for internal and external fraud. While many fire departments have chosen to enroll in these programs to prevent theft, some have chosen not to participate. When fraud is detected where there have been no preventive measures, local prosecutors call on the State Auditor’s Office to forensically determine the cause and scope after the fact. 