Cottonwood, Ala (WDNews) – The Cottonwood Ambulance and Rescue Squad in Houston County has been found noncompliant with laws and regulations during an examination. Several significant issues were identified, including inadequate documentation for disbursements and improper use of restricted funds.
Key Findings:
1. Inadequate Documentation: The Rescue Squad failed to provide proper documentation for disbursements totaling $847,539.91. This includes payments to individuals, vendors, and cash withdrawals from their checking accounts.
2. Improper Purchases: A cashier’s check of $25,005.00 made to Gilland Ford was found without supporting documentation to justify its purpose. It was used to purchase a 2019 Ford F150 by 38 Leasing, LLC, linked to the President of the Rescue Squad, raising questions about the vehicle’s use for public purposes.
3. Undocumented Payments: Payments totaling $17,727.00 to Mallory-Tate Insurance and Wiregrass Insurance, $11,991.84 to utility companies, and $2,535.45 to Chipola College lacked proper documentation, questioning their eligibility and purpose.
4. Personal Benefit Disbursements: Restricted public funds were deposited into accounts with private funds, and transfers were made between different bank accounts without proper documentation or authorization. Some disbursements appeared to benefit individuals personally.
5. Bank Fees and Mismanagement: The Rescue Squad incurred $192.00 in fees from local banks for non-sufficient funds and other issues. They failed to establish procedures for maintaining proper financial records and documentation, exposing them to risks of loss, theft, and mismanagement.
Charges and Recommendations:
– The President (Ricky Stokes) of the Rescue Squad is charged with making ineligible and undocumented purchases or cash withdrawals from restricted funds. An official demand for repayment has been made, with partial relief granted, but the remaining amount is still due and unpaid.
Recommendations include implementing procedures to ensure that all disbursements of public funds are for eligible purposes, adequately documented, and properly approved. The Rescue Squad should also maintain all official documentation to support their financial activities and prevent commingling public and private funds.
Next Steps:
The remaining unpaid amount will be certified to the Attorney General for collection. An exit conference was held with officers and representatives from the Department of Examiners of Public Accounts to discuss these findings and recommendations.
In other reports its noted that findings have put Cottonwood Rescue on the line for around $155,000. Houston County Commission Chairman Brandon Shoupe says this money will be on Cottonwood Rescue’s President Rickey Stokes to pay back to the department.
