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10/03/2007 Audit AUDIT REPORT OF MONROE COUNTY AGREEMENT BETWEEN THE BOARD OF GOVERNORS, LOWER AND MIDDLE KEYS FIRE AND AMBULANCE DISTRICT AND BIG COPPITT VOLUNTEER FIRE DEPARTMENT, INC. • October 3,2007 ,41V7 -GoUNry�t ,C74. '••••.....•••••••0+ ti • : • COUNT(. . Prepared by: • Internal Audit Depainuent Clerk of the Circuit Court Danny L. Kolhage, Clerk Monroe County,Florida AUDIT REPORT OF MONROE COUNTY AGREEMENT BETWEEN THE BOARD OF GOVERNORS,LOWER AND MIDDLE KEYS FIRE AND AMBULANCE DISTRICT AND BIG COPPITT VOLUNTEER FIRE DEPARTMENT, INC. TABLE OF CONTENTS Page I. OBJECTIVES AND SCOPE 1 II. METHODOLOGY 1-2 III. BACKGROUND INFORMATION 3 IV. AUDIT CONCLUSIONS 4 V. AUDIT FINDINGS A. BCVFD did not properly reimburse one of the volunteers for the correct number of calls. 5 B. BCVFD incorrectly classified one of the volunteer's certification reimbursements 6 C. BCVFD issued a reimbursement to a volunteer for an EMT certification when the volunteer did not have a current EMT license on file with the BCVFD 7 D.BCVFD failed to have some volunteers execute an Agreement of Understanding between the Individual Volunteer Firefighter or EMS provider and the Fire Department or Ambulance Corps. 8 E. BCVFD's Department Roster and Reimbursement Request form lists incorrect position titles for some volunteers/members. 9-10 VI. EXHIBITS A. Agreement B. Amendment and addendums to the Agreement C. Resolution No. 313-2005 D. Reimbursement request March 2007 ti E. Agreement of Understanding F. Department Roster and Reimbursement Request Form G. Volunteer Department Member Add-Delete Form H. BCVFD Response I. Emergency Services Response AUDIT REPORT OF MONROE COUNTY AGREEMENT BETWEEN THE•BOARD OF GOVERNORS,LOWER AND MIDDLE KEYS FIRE AND AMBULANCE DISTRICT AND BIG COPPITT VOLUNTEER FIRE DEPARTMENT, INC. I. OBJECTIVES AND SCOPE At the request of the Monroe County Clerk of the Circuit Court, the Internal Audit Department has completed an audit of the agreement between the Board of Governors,Lower and Middle Keys Fire and Ambulance District (District) and Big Coppitt Volunteer Fire Department, Inc. (BCVFD). See Exhibit A—Agreement. The audit objectives were to assess compliance with the agreement and the Monroe County Board of County Commissioners' policies, procedures, resolutions and agreements. Other objectives were to evaluate whether "Volunteer Fire and EMS Membership Reimbursement Guidelines" were appropriate and to review the effectiveness of BCVFD's internal controls regarding stipend reimbursements to members. II. METHODOLOGY A. We interviewed the following personnel to obtain information about the agreement with Big Coppitt Volunteer Fire Department, Inc. 1. Fire Chief,Big Coppitt Volunteer Fire Department, Inc. 2. Assistant Chief,Big Coppitt Volunteer Fire Department, Inc. 3. President,Big Coppitt Volunteer Fire Department, Inc. 4. Vice President,Big Coppitt Volunteer Fire Department, Inc. 5. Interim Fire Chief,Monroe County 6. Executive Assistant of Emergency Services • 7. The Clerk's Finance Department personnel 8. Volunteer Firefighter B. Internal Audit Department examined the following documents: 1. Agreement dated June 18, 1997 for fire rescue services with the Big Coppitt Volunteer Fire Department, Inc. 2. Amendment to Agreement dated July 8, 1998 providing for purchase of small item goods. 3. Addendum to Agreement dated April 14, 1999 regarding services to be provided. 4. Addendum to Agreement dated November 20,2001 extending the contract period to September 30, 2002 and addressing volunteer personnel reimbursement of expenses allowance. 5. Agreement dated October 20, 2004 continuing the contract on a month-to-month basis and addressing vehicle allowance. 6. Resolution No. 313-2005, dated August 17, 2005 prescribing the Volunteer Fire and EMS Membership Reimbursement Guidelines. 7. Reimbursement requests by BCVFD. 1 • 8. Payments to BCVFD. 9. Certifications of BCVFD members. 10. Detailed operations records of BCVFD. 11. Financial records of BCVFD. 12. Agreement of Understanding Between the Individual Volunteer Firefighter or EMS Provider and the Fire Department or Ambulance Corps C. Internal Audit Department reviewed the agreements to ensure that all terms and conditions were being complied with as documented within the agreement. D. Internal Audit Department reviewed and traced payments to Monroe County records. E. Internal Audit Department obtained an understanding of BCVFD member reimbursement procedures. F. Internal Audit Department reviewed member reimbursements for appropriateness and accuracy of reimbursement. G. Internal Audit Department reviewed member's certification records. H. Internal Audit Department reviewed member's Agreements of Understanding. �� . 2 • III. BACKGROUND INFORMATION On June 18, 1997, an Agreement was entered into by and between the Board of Governors, Lower and Middle Keys Fire and Ambulance District and Big Coppitt Volunteer Fire Department, Inc. The Monroe County Board of County Commissioners pursuant to the authority granted to it in Chapter 125,Laws of Florida, and Article 7, Section 9(b) of the Florida Constitution, established the Lower and Middle Keys Fire and Ambulance District and Municipal Service Taxing District for the purpose of providing fire protection and other related municipal services primarily for the benefit of the taxpayers residing within said District. Corporations have been organized for the purpose of providing Fire Rescue Services within the Districts. Monroe County Board of County Commissioners has provided funding appropriations within the budgets of the Districts for the reimbursement of certain expenses incurred by the various Corporations in providing Fire Rescue Services. Over the years the agreement has had numerous addendums. See Exhibit B—Amendment and addendums to the Agreement. The agreement is currently on a month to month basis. Resolution No. 313-2005 prescribes the Volunteer Fire and EMS Membership Reimbursement Guidelines. Based on this resolution the BCVFD submits monthly reimbursement requests to Emergency Services for approval and payment by the Clerk's Finance Department. See Exhibit C— Resolution No. 313-2005. 1 3 IV. AUDIT CONCLUSIONS - A. BCVFD mistakenly miscalculated calls for one of the volunteers. The volunteer was paid for 4 calls when he actually responded to 11 calls. B. BCVFD incorrectly classified one volunteer's certification on the individual volunteer's reimbursement sheet. The volunteer was reimbursed for Advanced Extrication Certification which he did not possess, but should have been reimbursed for Rope Rescue Certification which he did possess. C. BCVFD reimbursed a volunteer for having an Emergency Medical Technician (EMT) Certification,but the license was not current. D. BCVFD did not have executed Agreement's of Understanding for some volunteers who received reimbursements. E. BCVFD's Department Roster and Reimbursement Request form lists incorrect position titles for some volunteers/members. • • 4 V. AUDIT FINDINGS A. BCVFD did not properly reimburse one of the volunteers for the correct number of calls. Finding: On the reimbursement request for March 2007, the BCVFD mistakenly miscalculated calls for one of the volunteers. The volunteer was paid for four (4) calls when he actually responded to eleven (11) calls, so he was underpaid for seven (7) calls at$10 per call for a total of$70. See Exhibit D — Reimbursement request March 2007. This error was brought to the attention of BCVFD management and they confirmed. They will reimburse the volunteer for the shortage. The auditors feel that this was an isolated incident and simply a mistake. Recommendation(s): 1. The BCVFD should reimburse the volunteer for the correct number of calls for March 2007 and reimburse the volunteer the additional$70 for calls responded. BCVFD Response(s): This was an isolated incident that occurred in March of 2007. BCVFD has corrected this item by having either the Fire Chief or the Assistant Fire Chief input the data. Whichever one inputted the data the other one will review the data for accuracy. The volunteer that was under reimbursed by seven calls,will be reimbursed for the missed calls on the November 2007,reimbursement. • B. BCVFD incorrectly classified one of the volunteer's certification reimbursements. Finding: Resolution No. 313-2005 and Revised Attachment "I" Volunteer Fire & EMS Membership Reimbursement Guidelines states under item (E.) Criteria: "2. Additional Reimbursement: Additional reimbursement will be added to the base reimbursement amount for each of the additional qualifications or certifications possessed by the individual." See Exhibit C — Resolution No. 313-2005. One volunteer firefighter was being reimbursed for the Advanced Extrication Certification which he did not hold and should have been reimbursed for the Rope Rescue. Certification which he did possess. When brought to the attention of the BCVFD management, they stated that the wrong certification was checked on the individual volunteer's reimbursement sheet. There is no financial or monetary change/difference as result of this mistake since both certifications are reimbursed at the same amount. Management stated. that they will correct the mistake on future volunteer reimbursement forms. Recommendation(s): 1. BCVFD should continue verifying the individual volunteer's reimbursement form for correct completion. BCVFD Response(s): This was an isolated incident. The mistake was made when the original information was inputted into the reimbursement form. The volunteer was reimbursed for Advanced Extrication, but should -- have been reimbursed for Rope Rescue. The wrong box was checked. Both certifications are reimbursed at the same amount. BCVFD will verify all certifications annually to check for accuracy. The annual verification will take place in late January to early February. (Renewals for certifications that place in December,and new certificates are sent out in January) { 6 I _ C. BCVFD issued a reimbursement to a volunteer for an EMT certification when the volunteer did not have a current EMT license on file with the BCVFD. Finding: BCVFD reimbursed a volunteer for having the Emergency Medical Technician (EMT) Certification on February 2007 when the volunteer did not have a current EMT license on file with the BCVFD. According to Resolution No. 313-2005 and Revised Attachment "I" Volunteer Fire & EMS _ ! Membership Reimbursement Guidelines states under item (C.) Eligibility: "2. Volunteer must maintain the position of active combat firefighter, state-certified emergency medical provider, support personnel or administrative/technical personnel." See Exhibit C — Resolution No. 313- 2005. The amount of the reimbursement for the EMT certification was $15.00. This was brought to the attention of the BCVFD management and they had contacted the volunteer to obtain a current EMT certification. Recommendation(s): 1. The BCVFD should establish a procedure for obtaining copies of current certifications that require renewals for their files. 2. The terms of the agreement should be followed when requesting reimbursement. BCVFD Response(s): The volunteer had a current EMT license, however he failed to copy the current EMT license and have it place it in his personnel file. Since the Audit a copy of the current license has been placed in his personnel file. BCVFD will correct this issue by verifying all certifications annually to check for accuracy. The annual verification will take place in late January to early February. (Renewals for certifications that place in December, and new certificates are sent out in January) D. BCVFD failed to have some volunteers execute an Agreement of Understanding between the Individual Volunteer Firefighter or EMS provider and the Fire Department or Ambulance Corps. Finding: Resolution No. 313-2005 and Revised Attachment "I" Volunteer Fire & EMS Membership Reimbursement Guidelines defines the criteria and process for the disbursement of stipends to the active volunteer firefighters and emergency medical services providers. Resolution No. 313-2005 and Revised Attachment"I" states under item (C.) Eligibility: "3. Volunteers shall have executed an Agreement of Understanding Between the Individual Volunteer Firefighter or EMS Provider and the Fire Department or Ambulance Corps." See Exhibit C—Resolution No. 313-2005. We reviewed the individual volunteer's personnel files at the BCVFD and revealed that thirteen (13) out of the thirty (30) current members/volunteers on the Department's roster as of June 30, 2007 did not have an executed Agreement of Understanding and therefore were not be eligible for reimbursement. In February 2007 three (3) volunteers that received reimbursements totaling$1,285 did not have an executed Agreement of Understanding in their personnel file and therefore were not eligible for reimbursement. See Exhibit E—Agreement of Understanding. As of May 29, 2007 a copy of an executed Agreement of Understanding Between the Individual Volunteer Firefighter or EMS Provider and the Fire Department or Ambulance Corps for each added member must be attached to the Volunteer Department Member Add-Delete Form that is submitted to Emergency Services. See Exhibit G — Volunteer Department Member Add-Delete Form. Recommendation(s): 1. BCVFD should immediately have all current volunteers/members on the Department's roster who have not executed an Agreement of Understanding execute one and retain it in the volunteer's personnel file. 2. BCVFD should establish a procedure that requires all new members/volunteers to execute the Agreement of Understanding and retain it in the volunteer's personnel file. 3. BCVFD should include as an attachment to the Agreement of Understanding the Revised Attachment "I" "Volunteer Fire & EMS Membership Reimbursement Guidelines." This procedure would ensure that all volunteers are aware of the reimbursement guidelines. BCVFD Response(s): BCVFD has corrected this by having all of the volunteers sign the Agreement. BCVFD has also added this form to the application process. This form is now required to have a volunteer added to the roster and Monroe County Fire Rescue will also receive a copy of the signed agreement. 8 • E. BCVFD's Department Roster and Reimbursement Request form lists incorrect position titles for some volunteers/members. Finding: BCVFD's Department Roster and Reimbursement Request form lists incorrect position titles for some volunteers/members. See Exhibit F—Department Roster and Reimbursement Request Form. Some volunteers' positions are listed as Firefighters when they should be listed as Support. A volunteer should not be listed as a Firefighter for reimbursement purposes until they have met the requirements for that position which is completion of the Firefighter I class. The auditors found that the volunteers that where incorrectly classified were correctly reimbursed. BCVFD prepares the Add/Delete form and sends it to Emergency Services for preparation of the Department Roster and Reimbursement Request form. Emergency Services makes the necessary additions and deletions and sends the form back to the BCVFD to complete and submit for reimbursement. Recommendation(s): 1. Emergency Services should accurately list the member positions on the Department Roster and Reimbursement Request form based on the Member Add/Delete form proved by BCVFD.. 2. BCVFD\should review the Department Roster and Reimbursement Request form created and maintained by Emergency Services for accuracy. 3. BCVFD should establish a procedure for updating of volunteer/member position classifications • on the Department Roster and Reimbursement Request form. BCVFD Response(s): The Department Roster is prepared by Monroe County Fire Rescue. To correct this issue BCVFD will monitor the Roster monthly to verify proper titles. If a title is incorrect BCVFD will correct the title and send it back to Monroe County Fire Rescue. This issue has already been corrected with the assistance of Monroe County Fire Rescue. Emergency Services Response(s): We agree with the above recommendation. The Add/Delete Form was developed and implemented in February of 2005 which requires that the Volunteer Department Chief fill in a specific position title for each member when they are added. Once we receive this form at headquarters, we transfer the information to their master Department Roster and Reimbursement Request form which we keep up to date. We have trained out staff to 9 understand that member positions may not be changed in any other way, except by use of the Add/Delete Form which is signed by the Volunteer Department Chief and notarized. While the overall result of the audit was encouraging, as there were relatively few mistakes for the period of time covered, it did identify the need for additional controls to be put in place by the Emergency Services Division. In the near future I (Wayne J. Hinnant, Fire Chief/Director Emergency Services) will be meeting with staff and the Volunteer Chiefs to ensure our records are accurate, and processes are in place to ensure proper protection of the public's money. I will provide a report upon completion of that process. . fl 10