(Des Moines, Iowa) – Auditor of State Rob Sand today (Wednesday) released a report on a special investigation of the City of Hazleton Fire Department (Department) for the period July 1, 2017 through March 31, 2022. The special investigation was requested by City officials as a result of concerns regarding how the Department’s financial transactions were handled. In addition, City officials were concerned with how the Hazleton Fire Department nonprofit corporation (Corporation) was operating as the Corporation had been dissolved on July 1, 1997.

Sand reported because the Corporation had been dissolved the financial records and bank account should have been administered by the City of Hazleton in accordance with Chapter 384.220(2) of the Code of Iowa. Because of the dissolution, the financial transactions of the Association would have to comply with the same standards as all other City disbursements.
Auditor Sand reported, the Corporation disbursed $274,973.82 during the period of the investigation. Of the $274,832.82, $11,868.71 of the disbursements lacked supporting documentation, and $1,600.00 in CRP Burns had been billed to individuals but the payment had not been received or deposited with the Corporation or the City. Had the disbursements been processed by the City, which has a higher threshold to demonstrate disbursements are in the best interest of the public, $1,634.25 of disbursements from the Corporation bank account would have been considered improper disbursements.

In addition, Sand reported it was not possible to determine if any additional improper disbursements or if all collections were properly deposited during the period of the investigation because adequate records were not available.

The report includes recommendations for the new Association established in March 2022, to strengthen internal controls, such as improvements to segregation of duties, improving the determination and documentation of the public purpose of transaction, maintaining supporting documentation for all expenditures, improving controls over amounts billed but not collected.
Copies of the report have been filed with the Buchanan County Sheriff’s Office, the Division of Criminal Investigation, the Buchanan County Attorney’s Office, and the Attorney General’s Office. A copy of the report is available for review on the Auditor of State’s website at Special Interest Reports.