Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 14, 1995 TAG: 9503140126
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE: LENGTH: Medium
The city isn't sticking its nose where it isn't wanted. The squad asked the city to step up its oversight role.
Salem already performs annual audits on the $90,000 it gives the squad. However, problems have arisen with the squad's other monies, which are received as donations.
That was the case a few months ago when the squad took a year-end look at its finances and discovered discrepancies in two accounts. It asked the state police to investigate.
The state police did, and former Chief Ray Houff was indicted last month on charges of embezzlement, forgery and uttering. He is accused of taking about $1,900 from the squad's Good Neighbor Fund.
A second investigation, involving City Councilman Garry Lautenschlager and the squad's Wiley Fund, is pending.
Salem isn't the first government to take a greater interest in rescue squad oversight. Both Roanoke and Roanoke County require annual external audits of their crews' books.
But unlike the other two governments', the Salem audit won't be mandatory.
``They've imposed this on themselves. They came to us and asked, `Would you bring us up to date and keep us up to date?''' City Manager Randy Smith said.
Smith, however, will get a copy of the auditor's findings.
Audits don't come cheap. Smith said it will cost the city $8,000 to $13,000 to get the squad's books in order. The money will come from unappropriated funds.
Despite the cost, Mayor Jim Taliaferro said helping the squad was a sound investment.
Their finances are ``a maze that they're not equipped to handle,'' Taliaferro said.
The city's involvement may help ``restore confidence in the rescue squad and its fund raising,'' City Councilman Alex Brown said.
During Monday night's deliberation, Lautenschlager sat quietly. The 23-year squad member, who was suspended from the squad last month pending the outcome of an internal investigation, abstained from the final vote.
``I'll have to abstain, because I was a signature on many of those accounts,'' Lautenschlager said before the vote.
State police are investigating discrepancies in the Wiley Fund, which members of the board that oversee the account thought was dormant. However, money was coming in and going out on a regular basis, lawyers said. In the end, $2,000 was unaccounted for.
Lautenschlager was the only signatory on the checks drawn on the account. He has said he withdrew the money for supplies and training materials and replaced it with fees from classes.
by CNB