Bent Truth and Disrespect, Another meeting with Commissioner Helmick debunked

Shari Johnson, Publisher

It appears that Commissioner Kevin Helmick has once again bent the truth to fit his agenda of attacking a Volunteer Organization. When Sharon Gherke, Treasurer of the Grantsville Volunteer Fire Department stood before the Calhoun County Commission and requested an apology from Commissioner Helmick for his accusations levied in error against the Grantsville VFD, she was treated with the same disrespect that has become common place in Commission meetings.

Helmick had Commissioner Walker read a statement at the beginning of the Commission meeting that was filled with comments from State agents that could not be confirmed. According to Mike Jones of the WV Legislative Auditors office, who responded to Ridgeview News request to know if Helmick’s statements were true, Mr. Jones replied “Thank you for reaching out to our office regarding volunteer fire departments in Calhoun County. Unfortunately, we will not be able to provide a direct response to your inquiry; however, I can provide you general information regarding the processes, and provide you links to publicly available information to further assist you.”

Jones didn’t confirm whether or not Helmick’s statements were true, but he didn’t have to. He provided the information needed to prove Helmick’s statements were not true.

Helmick said in his statement:

“On March 20, 2023 I called Michelle Hodge with the State Fire Marshall. Grantsville Fire Dept. is supposed to have an audit every 3 to 5 years but she couldn’t find one. On March 20th I called Ethan Hamilton with the Legislative State Funding Audit, he Stated that Grantsville Volunteer Fire Department is sending Bank receipts annually and calling it an audit. He stated that they received three tries to get information correct. I asked if it took all three tries to turn in bank receipts and Ethan said he did not want to divulge whether or not I took three tries. If they are not turning in audits and just bank receipts why are you giving them their funding. Ethan stated that he hated to shut down a small fire department.”

However, a letter received by Treasurer Sharon Gherke from the same office was far contrary to what Helmick reported. Below is the letter in full. But to condense the matter I’ll point you to the important parts:

In paragraph 1 Mr. Jones writes: It should be noted this information only pertains to the state fund distribution. The requirements of the State Auditor’s Office, or the county commission would be separate from the information provided below.

Helmick continues to mention an unaddressed audit of the Grantsville Volunteer Fire Deparment which has nothing to do with the WV State Auditors office. The audit that Helmick refers to was one requested (but not in writing or any other manner) but requested during a commission meeting and never to the Grantsville VFD. The audit has not been done, because it’s never been requested.

In Paragraph 2 Mr. Jones writes: As you are aware, there are two main functions performed by the Post Audit Division related to the state funds distributed quarterly to each department: receiving copies of bank statements and check images annually and auditing the VFD state funds.

During Mr. Helmick’s rant, he insinuated that the Grantsville Volunteer Fire Department had not provided what the Legislative Auditor Division ask for. But in Mr. Jones email, he clearly state that they did provide it, and that it was really not an audit after all. Saying in Paragraph 3 in bold letters that he created, “this is not an audit.”

Mr. Jones went on to provide links showing Mrs. Gherke that her agency was in full compliance. The Grantsville VFD never denied that their attempt to file their quarterly reports failed because of a computer issue. But as soon as it was discovered they reissued the report, it was accepted, and no funding was in jeopardy. But Helmick repeatedly suggested that it was, saying that he had been informed by three agencies the matter was true. So if we’re to believe Helmick, we’re to believe that three agencies colluded together to lie regarding Grantsville’s filing of quarterly reports. To add insult to injury, Helmick refuses to give up his “three liars,” because they’ll never trust him again he said.

Why would they have trusted a Commissioner who attacks a volunteer agency that is responsible for pulling people out of accidents and house fires and saving their lives?

Does that sound like I’m upset as a Publisher? It should upset every citizen in Calhoun County. It’s also why, when I started Ridgeview News, and someone suggested I acquire a board, I refused. I refused for fear someone would tell me I shouldn’t say something that was true.

I don’t believe that the Nathan (not Ethan) Hamilton said what Helmick said he did. It would have been very unprofessional from an agency that supports volunteer firefighters. I’ve spoken to many such agencies over the years, and their remarks are always positive. Unlike Helmick who attacks them.

I’ll repeat today, what I said Tuesday. The days of Calhoun County citizens cowering to Political officials are over. This attempt by Helmick to damage the reputation of a Volunteer Fire Department for the sake of his ego should put fear in any agency that has to deal with him as a Commissioner. If this is how he conducts business, it may be your organization next.

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Treasurer Gherke:

Thank you for reaching out to our office regarding your concerns about the Grantsville VFD. As I indicated on the telephone, the Post Audit Division is granted statutory authority under W.Va. Code §12-4-14b(c) to perform compliance audits of the deposits and expenditures from formula distribution and equipment and training grant funds by volunteer and part-volunteer fire companies or departments. I am the Audit Manager responsible for these audits of all volunteer fire departments within the state. Based on your concerns I have researched the records related to the Grantsville VFD to hopefully provide the information you require. It should be noted this information only pertains to the state fund distribution. The requirements of the State Auditor’s Office, or the county commission would be separate from the information provided below.

As you are aware, there are two main functions performed by the Post Audit Division related to the state funds distributed quarterly to each department: receiving copies of bank statements and check images annually and auditing the VFD state funds. I will touch on these two functions briefly before providing more specific information. I will also provide several links to useful information for the department at the end of this email.

Annual Bank Statement Submission

Every department receiving a quarterly distribution is annually required to submit copies of the bank statements and check images (not invoices) for all department accounts that contained quarterly distributions in the prior calendar year by February 1^st. A department that does not complete its annual bank statement submission by March 31^st will then have their quarterly distribution withheld from disbursement. These funds can be in escrow for up to one year before the department faces any permanent funding loss. In the event a department does not comply within the year then one quarter is permanently lost and redistributed to other departments. This continues forward on a rolling basis until the department complies. When a VFD submits its annual bank statement and check images, audit staff reviews the submission to ensure the documents meet the requirements of W.Va. Code §12-4-14b(b). This requirement is that every day of the prior calendar year, and a copy of every check written is provided. It is very common for our office to follow up with departments for missing items. While some departments refer to this process as the annual audit, this process is not an audit.

State Fund Compliance Audit

The audit process begins with a risk assessment of the VFDs in the state. Post Audit management examined data from previous audits and identified potential indicators for departments with a high-risk of non-compliance. The generalized categories associated with a high assessed level of risk include: 1. Departments that had not had an audit; 2. Departments that had not had a recent audit; 3. Departments that had an audit with large discrepancies; and 4. The Department was delinquent in financial filings.  Additionally, we considered other factors such as communication of possible concerns from members of the Legislature and the general public. The VFD Auditor begins with the department with the highest assessed level of risk and proceeds down the list completing as many departments as possible. Then the risk assessment is updated, and the process begins again with a new list in January of the next year. Any audits that remain incomplete from the preceding year are completed prior to beginning audits from the new list.

Once a department is selected for an audit, a certified entrance letter is sent to the department requesting original documentation such as bank statements, cancelled checks, invoices, loan agreements, etc. The department mails the requested documentation, and the audit is slotted for work based on the date it was received. Audit staff then review all of the documentation supporting the deposits and expenditures of state fund for compliance with W.Va. Code §8-15-8b. Once this initial review is complete if additional documentation is required up to two follow up attempts will be made with the department. After the two additional attempts the audit will be finalized with the original documents returned to the department with an exit letter detailing the results. If the department disagrees with the audit results the department has five working days from the date it signed for the receipt of its documents to notify in writing its intent to challenge the results. If the department successfully provides this notification, it has 60 days to provide the additional documentation it believes will change the audit results. After the challenge window the audit results are final and will be publicly reported in the next annual report, which is usually released at the January interim meeting of the Post Audits subcommittee. After the report is released to the public our office is required to provide the State Treasurer the amount to withhold from each VFD that was not in compliance with W.Va.Code §8-15-8b. This amount is then withheld from the quarterly distribution until the total for each department has been withheld.

Grantsville Historical Information

As you are aware, the state funds of Grantsville VFD are currently being audited by the Post Division, and your documents for the audit have been received. I researched our records for past audits of your department, which indicate the 2017 calendar year transactions of the department was the last audit conducted by our division. The department was reported as in compliance in the report released on January 8, 2019. You can find the report  by clicking this link and going to page 11 of the report. I researched the quarterly distributions for the Grantsville VFD from current distribution back through the first quarter distribution of 2017. The only instance of the Grantsville VFD having state quarterly distributions withheld from the department was the 1^stquarter of 2017. The department had $12,674,64 withheld and reallocated per the State Fire Marshal. I am unable to provide further details on the reason for that instance. The State Treasurer publicly posts the distributions for every VFD that anyone can access by clicking this link. The main page provides the four most recent disbursements, but there is also an archive link on that page that provides information back through 2006. These documents indicate how much was disbursed to each department, and if any funds were withheld, it provides details on this as well.

Links to Information

§12-4-14b. Accountability of volunteer and part-volunteer fire companies or departments receiving state funds for equipment and training; review or audit of expenditures; withholding of state funds for delinquency or misuse; notifications.

§8-15-8b. Authorized expenditures of revenues from the Municipal Pensions and Protection Fund and the Fire Protection Fund; deductions for unauthorized expenditures; record retention.

https://wvtreasury.com/Banking-Services/Revenue-Distributions/Volunteer-Fire-Departments.

Post Audit Management Guide for VFDs

Example expenditures for state funds (please note this will be updated in June 2023)

Publicly released audits by Post Audit of VFDs (please note this will be updated in June 2023)

I hope this provides the information you require to assist you in effectively performing your duties as treasurer of the Grantsville VFD. If you have any questions in the future that we may be able to assist you with, please feel free to reach out.

Thanks

Mike Jones, CIA, CFE, CRMA

Audit Manager

Legislative Auditor’s Office

Post Audit Division

Building 1, Room W-329

1900 Kanawha Blvd., East

Charleston, WV 25305-0610

Phone: (304) 347-4880