State Audit Finds Illegal Payouts In Chesterfield's Fire District

State auditors found extra pay worth $280,000 to seven senior employees of Chesterfield's Monarch Fire Protection District violated the Missouri Constitution, officials said Wednesday night at a public meeting.

The audit also found duplicate payments to the pension attorney.

The payments to employees were retirement incentives which in effect raised the past salaries of senior employees by $2,000 and $1,500 more per year. 

"The Missouri Constitution forbids granting any extra compensation to public employees for services already rendered," according to a summary supplied by Missouri Auditor Thomas Schweich's office.

Schweich rated the district "Fair" on a scale of excellent, good, fair and poor. 

In addition, the district paid "excessive health, vacation and sick leave benefits," officials said. The seven are paid in full for vacation and sick leave, which is a violation of regular policy. One of the lucky seven scored $34,000 in leave time, the audit found.

The district board said they approved the deals with a labor law attorney's advice.

Missouri's governor's office called for the audit in 2010 of Monarch—Chesterfield's fire district.

Other violations included some 40 meetings closed to the public by the three-person district board of trustees, yet provided no public explanations why, as required by law.

"I have not done an audit with that many violations," Schweich said. The state will follow-up with the district in 90 days, he said.

Monarch also paid out "thousands of dollars" for lobbying, but had no records describing what work may have been done, Schweich said. Resident taxes support Monarch.

The audit found $200,000 worth of discrepencies in accounting, Schweich said, that the district said was due to converting to a new system. He said the district later got the discrepancy down to $2,000.

"It shows a little sloppiness," Schweich said. Sloppy reconciliation leaves room for theft, fraud and embezzlement, he said, but found no evidence of those crimes at Monarch.

A $26,000 service awards party for Monarch employees in September, Schweich said, "is a questionable use of district funds" for a district of Monarch's size. "Such costs should be kept to a minimum." The audit itemized the costs:

• $16,000 for 63 awards of rings, watches, etc.
• $5,000 for conference room and dinner
• $2,000 for speakers fee
• $2,000 for party favors, etc.
• $500 for photography

Prior to approving payment for the hotel conference room last year, in a public meeting board Treasurer Robin Harris suggested holding the awards party at Monarch headquarters, which has an huge engine house with glass doors, that is non-active. Board President Kim Evans rejected the idea.

After the auditor's 30-minute public review of the findings Wednesday, Board Secretary Steven Swyers said he was "disappointed" by the district's "Fair" rating, but not surprised by it.

"We need more discipline," Swyers said, about the district. He said it was likely the district would survey the salaries of 18 management level jobs, as suggested by the audit.

"I think it's a worthwhile process," Swyers said.

District fire Chief Tom Vineyard agreed.

"It would be nice to do," he said. Vineyard started on the job with Monarch just this year after the retirement of Chip Biele.

Afterward, Evans said this via email:

"Overall, the audit findings revealed that previous board leadership was irresponsible in managing the district's policies and finances." Evans was elected to the board nearly five years ago and became president in 2011.

"Fair" rating definition by state audit: Indicates needs to improve operations in several areas. Contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. Also, if applicable, several prior recommendations have not been implemented.