(DENISON) Auditor of State David Vaudt today released a report on a special investigation of the City of Denison Fire Department for the period July 1, 2005 through March 31, 2010. The special investigation was requested by City officials as a result of alleged improprieties regarding certain disbursements for the City’s Fire Department. The concerns were identified after the former Fire Chief, Mike McKinnon, left the City’s employment in early 2010.
Vaudt reported the special investigation identified $95,896.01 of improper and unsupported disbursements. Of this amount, $72,794.80 was paid by the City of Denison and $23,101.21 was paid by the Crawford County EMS Association. The $72,794.80 paid by the City includes a $12,000.00 improper disbursement initially paid by the Denison Volunteer Fire Department which was subsequently reimbursed to the Department by the City.
The $72,794.80 paid by the City includes $64,255.97 of improper disbursements, which consists of $39,805.00 paid to businesses owned and operated by Mr. McKinnon, $12,956.87 paid to other vendors, $5,076.48 of personal purchases made with the City’s credit card and $6,417.62 of travel reimbursements. The $8,538.83 of unsupported disbursements identified includes purchases made with the City’s credit card.
Some of the improper disbursements to businesses owned and operated by Mr. McKinnon were not supported by invoices or other appropriate documentation. Other improper disbursements to Mr. McKinnon’s businesses were supported by invoices which included vendor addresses consisting of post office boxes in Des Moines and West Des Moines, Iowa. However, the post office boxes listed on the invoices did not exist.