Alabama Department of

Examiners of Public Accounts

Special Examination on the

Indian Ford Fire District
Jefferson County, Alabama
January 1, 2021 through May 31, 2023
Filed: September 22, 2023

Rachel Laurie Riddle, Chief Examiner

 State of Alabama
Department of
Examiners of Public Accounts
P.O. Box 302251, Montgomery, AL 36130-2251
401 Adams Avenue, Suite 280
Montgomery, Alabama 36104-4338
Rachel Laurie Riddle Telephone (334) 242-9200
Chief Examiner FAX (334) 242-1775

Honorable Rachel Laurie Riddle

Chief Examiner of Public Accounts
Montgomery, Alabama 36130

Dear Madam:

A special examination was conducted of the Indian Ford Fire District, Jefferson County,
Alabama, for the period January 1, 2021 through May 31, 2023. Under the authority of the
Code of Alabama 1975, Section 41-5A-19, I hereby swear to and submit this report to you on
the results of the special examination.

Respectfully submitted,

Dixie B. Thomas
Examiner of Public Accounts

rb

23-369
 Table of Contents
Page

Summary A

Contains items pertaining to state and local legal compliance and other matters.

Schedule of Findings C

Contains detailed information about findings pertaining to noncompliance with

state and local laws.

Exhibit #1 Board Members and Officers of the Fire District – a listing of

the Board Members and Officers of the Fire District. 1

Exhibit #2 Schedule of Charges for Fire Chief – a schedule that provides

details of amounts that the Fire Chief has been asked to repay. 2

Exhibit #3 Schedule of Charges for Former Chief’s Assistant – a schedule

that provides details of amounts that the former Chief’s Assistant
has been asked to repay. 4

Orders of the Chief Examiner 6

________________________________________

Indian Ford Fire District

Jefferson County
 Department of
Examiners of Public Accounts

SUMMARY

Indian Ford Fire District

Jefferson County, Alabama
January 1, 2021 through May 31, 2023

The Indian Ford Fire District (the “Fire District”) is located in Jefferson County and
provides services to portions of Shelby County. The Fire District receipts, disburses, and
otherwise accounts for funds received through distributions from the Jefferson County Tax
Collector for ad valorem taxes, an appropriation from the Shelby County Commission, a state
grant, fees from citizens of Shelby County and other sources. The disbursements of Fire
District funds should be limited to authorized purposes as set forth by state and/or local laws
and regulations and should be supported by proper documentation. This report presents the
results of a special examination of the Fire District performed pursuant to the Code of
Alabama 1975, Section 41-5A-5(a)(9).

During our examination of the Fire District, attempts were made to evaluate the policies and
procedures in place within the Fire District. However, there were no official minutes
provided to support the actions and activities of the Fire District. There was a lack of
segregation of duties within the Fire District. The former Chief’s Assistant of the Fire District
was responsible for receiving funds, disbursing funds, and recordkeeping. To accomplish
proper segregation of duties, an internal control system, insofar as possible, should provide
for different individuals to perform the function of authorizing a transaction and the
performing and recording of a transaction. Instances of noncompliance with state and local
laws and regulations and other matters were found during the examination as shown on the
Schedule of Findings and they are summarized below.

FINDINGS

♦ 2023-001: The Fire District failed to implement and adhere to procedures to ensure that all
disbursements of restricted funds were made for eligible purposes, adequately
documented, and properly approved.

♦ 2023-002: The Fire District failed to ensure adherence with the minimum accounting
requirements, as prescribed by the Chief Examiner, and to ensure that documentation is
maintained to support all administrative and financial activities.

♦ 2023-003: The Fire District failed to ensure adherence with the minimum accounting
requirements, as prescribed by the Chief Examiner, and to ensure that documentation is
maintained to support the Fire District’s fire dues collected through an online payment
service.

23-369 A
♦ 2023-004: The Fire District failed to implement and adhere to procedures to ensure that
ineligible payments, such as personal mortgage, were not made using the Fire District’s
bank account.

CHARGES AGAINST FORMER OFFICERS

As reflected on Exhibits 2 and 3, the charges against the Fire Chief and the former Chief’s
Assistant of the Fire District resulted from disbursements made for ineligible and/or
undocumented purchases made from restricted funds of the Fire District. Official demand
was made on the Fire Chief requesting payments totaling $87,664.29. The Fire Chief
appeared at a meeting before the Chief Examiner and submitted further evidence related to the
charges. As a result, relief in the amount of $87,664.29 was granted to the Fire Chief as
evidenced by the Order of the Chief Examiner contained in this report. Official demand was
made on the former Chief’s Assistant requesting payments totaling $108,073.33. The former
Chief’s Assistant failed to appear at a meeting with the Chief Examiner and show just cause
as to why the amounts charged should not be repaid. However, based on evidence submitted
by others related to the charges, relief in the amount of $5,000.00 was granted and the
remaining charges in the amount of $103,073.33 remain due and unpaid as evidenced by the
Order of the Chief Examiner contained in this report. The charges that remain are due and
unpaid, as a result, this report will be certified to the Attorney General for collection.

EXIT CONFERENCE

Current Board members and officers, as reflected on Exhibit 1, were invited to discuss the
results of this report at an exit conference held by teleconference. Individuals in attendance
were Eddie Garner, Gay Nell White and Cathy Chairomonte. Jason Paulk, Chief Legal
Counsel, Dixie B. Thomas, Director of Operational Audits and Brooke Warren, Examiner,
represented the Department of Examiners of Public Accounts.

23-369 B
Schedule of Findings

C
 Schedule of Findings
January 1, 2021 through May 31, 2023

Ref.
No. Finding/Noncompliance
2023-001 Finding:
Pursuant to the Code of Alabama 1975, Section 41-5A-21, the Chief Examiner of
Public Accounts has prescribed Minimum Accounting Requirements for Volunteer
Fire Departments. The minimum accounting requirements list funds that are
considered restricted and the eligible and ineligible expenditures of restricted
funds. Restricted funds include state grants, county appropriations, and ad
valorem taxes.

The Indian Ford Fire District (the “Fire District”) received funds that are classified
as restricted through a state grant, an appropriation from the Shelby County
Commission, and distributions from the Jefferson County Tax Collector for ad
valorem taxes. An examination of the Fire District’s bank account, where these
funds were deposited or transferred, was conducted and documentation for
disbursements made from these accounts was requested.

The restricted funds should be spent for eligible expenditures benefitting the Fire
District in compliance with state and local laws and regulations. Proper
documentation, including an original invoice and authorization by the Fire
District’s Board of Directors, to support the allowable use of expenditures made,
was requested from the Fire District’s Fire Chief and Chief’s Assistant; however,
proper documentation was not provided for questioned expenditures totaling
$108,073.33.

The eligibility and purpose of the following expenditures were questioned and
remain undocumented; therefore, we were unable to ascertain if the expenditures
were spent to benefit the Fire District and further fire protection in the affected
area:

♦ Amounts were paid to individuals by checks, made using the Fire District’s
bank account, totaling $20,409.04. No documentation was provided to
support the eligibility and purpose of these disbursements.
♦ Payments totaling $6,322.15 were made to finance companies for which no
documentation was provided to support the eligibility and purpose of the
disbursements.
♦ Expenditures totaling $20,094.88 were made to various vendors for which no
documentation to support the eligibility and purpose of the disbursements was
provided. These vendors included a utility company and insurance companies
not used by the Fire District, a veterinary clinic, pet store, and gas stations.
The utility bills, fuel, and veterinarian services do not appear to be for the Fire
District.

Indian Ford Fire District D

Jefferson County
 Schedule of Findings
January 1, 2021 through May 31, 2023

Ref.
No. Finding/Noncompliance
Finding Continued:
♦ Expenditures totaling $2,180.81 were made through the Google Play App
Store, using restricted funds for which no documentation was provided. The
purchases appear to be for various applications not related to the Fire District.
♦ Expenditures totaling $14,753.69 were made at general retail stores, including
Wal-Mart, Sam's Club, Auto Zone, Home Depot, and Target using restricted
funds for which no documentation was provided to support the eligibility and
purpose of the disbursement.
♦ Expenditures totaling $4,871.70 were made to online retailers including
Amazon and eBay for which no proper documentation was provided to support
the eligibility and purpose of the disbursement.
♦ Expenditures totaling $1,511.85 were made to online subscription services
including Hulu, Life360, Nintendo, PlayStation and public records companies
(BeenVerified, TruthFinder, etc.) for which no proper documentation was
provided to support allowability of the expenditures.
♦ Cash withdrawals totaling $10,660.55 were made from the Indian Ford Fire
District’s checking account for which no documentation was provided to
support the eligibility and purpose of the withdrawals. The associated bank
charges are included in this amount.
♦ Expenditures totaling $23,124.95 were made to food delivery services and
restaurants, including Instacart, Door Dash, and UberEATS using restricted
funds for which no documentation was provided to support the eligibility and
purpose of the disbursements.
♦ Expenditures totaling $1,323.59 were made to entertainment venues, including
the Birmingham Zoo, a trampoline park, and the Lost Bay KOA campground
using restricted funds for which no documentation was provided to support the
eligibility and purpose of the disbursements.
♦ Expenditures totaling $2,820.12 were made at pharmacies, using restricted
funds for which no documentation was provided.
The Fire District failed to establish procedures to ensure that funds were spent for
eligible purposes and that proper documentation, including original invoices and
authorization by the Fire District’s Board of Directors, was maintained. As a
result, $108,073.33 is reflected as amounts due from the Fire Chief and the former
Chief’s Assistant on Exhibit 2.
Recommendation:
The Fire District should implement procedures to ensure that all disbursements of
restricted funds are for eligible purposes, adequately documented, and properly
approved.

Indian Ford Fire District E

Jefferson County
 Schedule of Findings
January 1, 2021 through May 31, 2023

Ref.
No. Finding/Noncompliance
2023-002 Finding:
Pursuant to the Code of Alabama 1975, Section 41-5A-21, the Chief Examiner of
Public Accounts has prescribed Minimum Accounting Requirements for Volunteer
Fire Departments. The minimum accounting requirements contain items that were
developed to assist in the proper management of public and nonpublic funds
received by Volunteer Fire Departments. These items include, but are not limited
to the following:
 Each fire department’s Board of Directors should keep minutes of all meetings.
 A cashbook reflecting the receipts, disbursements, and balances on hand
should be maintained monthly.
 Public records should be retained until approval for destruction is obtained
from the Alabama Department of Archives and History.
Our examination of the Indian Ford Fire District (the “Fire District”) revealed that
these minimum accounting requirements were not being followed. The following
issues were noted:
 Minutes could not be provided to document the actions of the Indian Ford Fire
District’s Board of Directors including authorizations for expenditures.
 Based on the records obtained for examination, there was no evidence of a
cashbook reflecting receipts, disbursements, and balances on hand being
maintained by the Fire District. The Fire District had monthly expenditures
made to Quickbooks, however, no information or reports from this software
were provided.
 Public records, including supporting documentations for receipts and
disbursements, minutes, cashbooks, etc., as noted above could not be provided
for much of the examination period indicating that they were not maintained in
accordance with guidance from the Alabama Department of Archives and
History.
The Fire District did not have procedures in place to ensure that minimum
accounting requirements were followed, as required. The lack of documentation
maintained to support the financial activities and administrative actions of the Fire
District, exposed the Fire District to the risk of loss, theft, and mismanagement.
Recommendation:
The Fire District should ensure procedures are in place to ensure adherence to the
minimum accounting requirements as prescribed and ensure that documentation is
maintained to support all administrative and financial activities.

Indian Ford Fire District F

Jefferson County
 Schedule of Findings
January 1, 2021 through May 31, 2023

Ref.
No. Finding/Noncompliance
2023-003 Finding:
Pursuant to the Code of Alabama 1975, Section 41-5A-21, the Chief Examiner of
Public Accounts has prescribed Minimum Accounting Requirements for Volunteer
Fire Departments. The minimum accounting requirements contain items that were
developed to assist in the proper management of public and nonpublic funds
received by Volunteer Fire Departments. These requirements state that all funds
received should be deposited in an official bank account of the Fire District.

The Fire District’s website indicated that fire dues from citizen served in Shelby
County could be collected through PayPal; however, our review of the bank
statements from the Fire District’s bank account did not show any deposits of
money collected for fire dues via PayPal. We are unable to determine the amount
of fire fees that may have been collected during our examination period. The lack
of documentation maintained to support the financial activities of the Fire
District’s fire dues, exposed the Fire District to the risk of loss, theft, and
mismanagement.

Recommendation:
The Fire District should remove this payment option from their website ensure
procedures are in place to ensure adherence to the minimum accounting
requirements as prescribed and ensure that documentation is maintained to support
all administrative and financial activities.

Indian Ford Fire District G

Jefferson County
 Schedule of Findings
January 1, 2021 through May 31, 2023

Ref.
No. Finding/Noncompliance
2023-004 Finding:
Pursuant to the Code of Alabama 1975, Sections 41-5A-21, the Chief Examiner of
Public Accounts has prescribed Minimum Accounting Requirements for Volunteer
Fire Departments. The minimum accounting requirements list funds that are
considered restricted and the eligible and ineligible expenditures of restricted
funds. Restricted funds include state grants, county appropriations, and ad
valorem taxes.

The Indian Ford Fire District (the “Fire District”) received restricted funds through
a state grant, an appropriation from the Shelby County Commission and ad
valorem tax disbursements from the Jefferson County Tax Collector.
Documentation to support whether these restricted funds had been spent for
eligible purposes benefitting the Fire District was requested. Our examination of
the Fire District’s bank account, where the restricted funds were deposited,
revealed that two personal mortgage payments for the former Board President
were made from the Fire Districts’ bank account.

Procedures or other safeguards were not in place to ensure that funds were not
spent for ineligible purposes, such as personal mortgage payments and that former
Board members of the Fire District were properly removed from bank accounts. It
appears that these amounts may have been repaid to the District.

Recommendation:
The Fire District should implement procedures to ensure that all disbursements of
restricted funds are for eligible purposes and are properly approved.

Indian Ford Fire District H

Jefferson County
 Board Members and Officers of the Fire District
January 1, 2021 through May 31, 2023

Board Members Term Expires

Eddie Garner January 1, 2024

Kenneth Coston January 1, 2022

Gay Nell White January 1, 2023

Cathy Chiaramonte January 1, 2025

Officers

James L. McDougal Fire Chief

John Baker Former Deputy Chief

Shelley Baker Former Chief’s Assistant

Indian Ford Fire District 1 Exhibit #1

Jefferson County
Schedule of Charges for Fire Chief
January 1, 2021 through May 31, 2023

Amount
Relieved
Amount Amount By Chief Amount
Person/Official Charged Date Charged Paid Examiner Unpaid Description of Charge

Jointly Charged To:

James McDougal, Fire Chief 01/01/2021 $ 6,322.15 $ $ (6,322.15) $ Payments were made to finance companies including One Main
Shelley Bake, Former Chief's Assistant through Financial and Titlemax for which no documentation was provided
Indian Ford Fire District 05/31/2023 to support the eligibility and purpose of the payments.

01/01/2021 20,094.88 (20,094.88) Expenditures were made with various vendors for which no
through documentation to support the eligibility and purpose of the
05/31/2023 disbursements was provided. These vendors included a utility
and insurance companies not used by the Fire District, a
veterinary clinic, pet store and gas stations. The utility bills,
fuel, and veterinarian services do not appear to be for the Fire
District.

01/01/2021 2,180.81 (2,180.81) Expenditures were made through Google Play App Store using
through restricted funds for which no proper documentation was provided.
05/31/2023 The purchases appear to be for various applications not related to
the Fire District.

01/01/2021 14,753.69 (14,753.69) Expenditures were made at general retail stores and online
through retailers, including Wal-Mart, Sam's Club, Auto Parts Store,
05/31/2023 Home Depot and Target using restricted fund for which no
documentation was provided to support the eligibility and purpose
of the disbursements.

01/01/2021 4,871.70 (4,871.70) Expenditures were made at online retailers, including Amazon
through and eBay for which no documentation was provided to support the
05/31/2023 eligibility and purpose of the disbursements.

01/01/2021 1,511.85 (1,511.85) Expenditures were made to online subscription services, including
through Hulu, Life360, Nintendo, PlayStation and public records
05/31/2023 companies (Been Verified, TruthFinder and etc.) for which no
proper documentation was provided to support whether the
expenditures are allowable.

01/01/2021 10,660.55 (10,660.55) Cash withdrawals were made at ATMs from the Indian Ford
through Volunteer Fire District's checking account for which no
05/31/2023 documentation was provided to support the eligibility and
purpose of the withdrawals. The associated fees charged for
these withdrawals are included in this amount.

Sub-Total Forward $ 60,395.63 $ $ (60,395.63) $

Indian Ford Fire District

Jefferson County 2 Exhibit #2
Schedule of Charges for Fire Chief
January 1, 2021 through May 31, 2023

Amount
Relieved
Amount Amount By Chief Amount
Person/Official Charged Date Charged Paid Examiner Unpaid Description of Charge

Sub-Total Brought Forward $ 60,395.63 $ $ (60,395.63) $

Jointly Charged To:

James McDougal, Fire Chief 01/01/2021 23,124.95 (23,124.95) Expenditures were made to food delivery services and restaurants,
Shelley Bake, Former Chief's Assistant through including Instacart, DoorDash and UberEATS for which no proper
Indian Ford Fire District 05/31/2023 documentation was provided to support the eligibility and
purpose of the expenditures.

01/01/2021 1,323.59 (1,323.59) Expenditures were made to entertainment venues, including the
through Birmingham Zoo, a trampoline park, and the Lost Bay KOA
05/31/2023 campground for which no proper documentation was provided to
support the eligibility and purpose of the expenditures.

01/01/2021 2,820.12 (2,820.12) Expenditures were made at pharmacies using restricted funds
through for which no documentation was provided to support the eligibility
05/31/2023 and purpose of the expenditures.
Total Jointly Charged to James McDougal
and Shelley Baker 87,664.29 (87,664.29)

Total Amounts Charged $ 87,664.29 $ $ (87,664.29) $

Indian Ford Fire District

Jefferson County 3 Exhibit #2
Schedule of Charges for Former Chief's Assistant
January 1, 2021 through May 31, 2023

Amount
Relieved
Amount Amount By Chief Amount
Person/Official Charged Date Charged Paid Examiner Unpaid Description of Charge

Directly Charged To:

Shelley Baker, Former Chief's Assistant 01/01/2021 $ 20,409.04 $ $ (5,000.00) $ 15,409.04 Amounts were paid to individuals for which no documentation was
Indian Ford Fire District through provided to support the eligibility and purpose of the disbursements.
05/31/2023

Total Directly Charged To Shelley Baker 20,409.04 (5,000.00) 15,409.04

Jointly Charged To:

James McDougal, Fire Chief 01/01/2021 6,322.15 6,322.15 Payments were made to finance companies including One Main
Shelley Baker, Former Fire Chief's Assistant through Financial and Titlemax for which no documentation was provided
Indian Ford Fire District 05/31/2023 to support the eligibility and purpose of the payments.

01/01/2021 20,094.88 20,094.88 Expenditures were made with various vendors for which no
through documentation to support the eligibility and purpose of the
05/31/2023 disbursements was provided. These vendors included a utility
and insurance companies not used by the Fire District, a
veterinary clinic, pet store and gas stations. The utility bills,
fuel, and veterinarian services do not appear to be for the Fire
District.

01/01/2021 2,180.81 2,180.81 Expenditures were made through Google Play App Store using
through restricted funds for which no proper documentation was provided.
05/31/2023 The purchases appear to be for various applications not related to
the Fire District.

01/01/2021 14,753.69 14,753.69 Expenditures were made at general retail stores and online
through retailers, including Wal-Mart, Sam's Club, Auto Parts Store,
05/31/2023 Home Depot and Target using restricted fund for which no
documentation was provided to support the eligibility and purpose
of the disbursements.

01/01/2021 4,871.70 4,871.70 Expenditures were made at online retailers, including Amazon
through and eBay for which no documentation was provided to support the
05/31/2023 eligibility and purpose of the disbursements.

Sub-Total Forward $ 68,632.27 $ $ (5,000.00) $ 63,632.27

Indian Ford Fire District

Jefferson County 4 Exhibit #3
Schedule of Charges for Former Chief's Assistant
January 1, 2021 through May 31, 2023

Amount
Relieved
Amount Amount By Chief Amount
Person/Official Charged Date Charged Paid Examiner Unpaid Description of Charge

Sub-Total Brought Forward $ 68,632.27 $ $ (5,000.00) $ 63,632.27

Jointly Charged To:

James McDougal, Fire Chief 01/01/2021 1,511.85 1,511.85 Expenditures were made to online subscription services, including
Shelley Baker, Former Fire Chief's Assistant through Hulu, Life360, Nintendo, PlayStation and public records
Indian Ford Fire District 05/31/2023 companies (Been Verified, TruthFinder and etc.) for which no
proper documentation was provided to support allowability of the
disbursements.

01/01/2021 10,660.55 10,660.55 Cash withdrawals were made at ATMs from the Indian Ford
through Volunteer Fire District's checking account for which no
05/31/2023 documentation was provided to support the eligibility and
purpose of the withdrawals. The associated fees charged for
these withdrawals are included.

01/01/2021 23,124.95 23,124.95 Expenditures were made to food delivery services and restaurants,
through including Instacart, DoorDash and UberEATS for which no proper
05/31/2023 documentation was provided to support the eligibility and
purpose of the expenditures.

01/01/2021 1,323.59 1,323.59 Expenditures were made to entertainment venues, including the
through Birmingham Zoo, a trampoline park, and the Lost Bay KOA
05/31/2023 campground for which no proper documentation was provided to
support the eligibility and purpose of the expenditures.

01/01/2021 2,820.12 2,820.12 Expenditures were made at pharmacies using restricted funds
through for which no documentation was provided to support the eligibility
05/31/2023 and purpose of the expenditures.
Total Jointly Charged to James McDougal
and Shelley Baker 87,664.29 87,664.29

Total Amounts Charged $ 108,073.33 $ $ (5,000.00) $ 103,073.33

Indian Ford Fire District

Jefferson County 5 Exhibit #3
This Page Intentionally Blank
Orders of the Chief Examiner

6
 ORDER OF THE CHIEF EXAMINER

RE: INDIAN FORD FIRE DISTRICT,

JEFFERSON COUNTY
JANUARY 1, 2021 THROUGH MAY 31, 2023

This matter of amounts due from Fire Chief of the Indian Ford Fire District, Jefferson County was

brought before me on the 30th day of August 2023, pursuant to the provisions of the Code of

Alabama 1975, Section 41-5A-20. I am of the opinion that the Fire Chief of the Indian Ford Fire

District, Jefferson County, Alabama, has provided evidence to constitute just cause for relieving

charges in the amount of $87,664.29, therefore relief from these charges is granted.

Enteredthisthe ~ dayof ~202-5_

/fl;)~~
Rachel Riddle
Chief Examiner
 ORDER OF THE CHIEF EXAMINER

RE: INDIAN FORD FIRE DISTRICT,

JEFFERSON COUNTY
JANUARY 1, 2021 THROUGH MAY 31, 2023

This matter of amounts due from the former Chief's Assistant of the Indian Ford Fire District

was brought before me on the 30 th day of August 2023, pursuant to the provisions of the Code of

Alabama 1975, Section 41-5A-20. I am of the opinion that evidence provided by others

constitutes just cause for relieving charges in the amount of $5,000.00, therefore relief from

these charges is granted. Further, I am of the opinion that the former Chief's Assistant of the

Indian Ford Fire District, Jefferson County has failed to show just cause why the remaining

charges in the amount of $103,073.33 should not be paid, therefore relief from these charges is

denied.

Entered this the