Olsen began his presentation by detailing the scope of the forensic accounting engagement, which primarily focused on the 10% contributions and goodwill donations made by the fire relief association. He noted a total of $52,232 in contributions reported by the association from 2019 to 2024, with a minor discrepancy of $622 found between the association’s spreadsheet and the reported amount. Olsen chose not to investigate this further due to the cost of additional analysis relative to the discrepancy size. He detailed that these funds were used for expenditures such as jackets for firefighters and equipment updates.

The presentation also highlighted difficulties in tracing funds from earlier years, specifically from 2013 to 2018. Olsen reported that approximately $24,669 was contributed during this period, but only about 70% of those contributions could be traced directly to the general fund. He attributed these challenges to the aging of records and the absence of detailed information. However, Olsen pointed out that the audited financial statements for that period reconciled within $400 when compared to the association’s spreadsheet, which he considered a positive indication of the financial records’ accuracy.

A point raised during the meeting was the issue of a $65,000 unpaid gambling tax from 2021, which was reimbursed using goodwill donations. There was confusion regarding the intended use of these funds, as a board resolution had stipulated they were for fire equipment. The mismatch between the board resolution and fund utilization prompted discussions about the importance of clear documentation practices.

The council also reviewed donations amounting to $224,200 made to the fire relief association over the same period. It was noted that 98.1% of these donations could be traced to the general fund, though a few smaller donations could not be readily accounted for. Despite some untraceable funds, confidence was expressed in the financial audits, which showed no deficiencies.

The council discussed the necessity of having board resolutions for all donations to ensure auditability and clarity regarding their intended use. This was part of a broader conversation about improving documentation practices. Suggestions included maintaining annual reports, providing documentation to the fire department, and ensuring resolutions are properly documented and retained for longer periods. Participants acknowledged challenges due to the city changing banks, which affected the retrieval of historical data, and emphasized the need for complete and accessible records to facilitate audits and ensure compliance with guidelines.

Further discussions focused on the financial state of the city and the handling of both monetary and equipment donations. Participants emphasized the importance of consulting legal counsel to verify state statute requirements for donations and maintaining compliance with legal standards. Suggestions were made to download banking information annually for record-keeping, aligning with the city’s document retention policy.

The meeting concluded with the recommendation to continue transparent documentation of donations and expenditures. This included providing all necessary documentation to the fire relief association at year-end and ensuring that monthly resolutions are made to facilitate timely documentation. A PowerPoint presentation was offered to council members, and participants expressed a need for clarity and follow-through on the recommendations discussed.