Audits find misappropriations, mismanagement continued at Mason County Fire District 12

The latest audits of a troubled Mason County fire district show its well-documented disregard for the protection of public funds continued for years until its governing board was replaced in 2024.

A fraud investigation report published today found Fire District 12 staff and commissioners misappropriated nearly $150,000 through 2024. An accountability audit found the district disregarded state laws, including the Open Public Meetings Act. The findings come four years after the Office of the Washington State Auditor reported similar problems involving many of the same people in the district.

“It is disgraceful that such contempt for the public’s interest went on for so long at Mason County Fire District 12,” said State Auditor Pat McCarthy. “I know the community wanted and deserved better from their fire district, and with a new slate of commissioners and new staff, I am hopeful the public’s expectations will finally be met.”

Among the State Auditor’s Office new findings:

• Former commissioners misappropriated more than $15,000 in purchases, including all-terrain vehicles, a boat and trailer, dog kennels and a camping trailer later given to the former fire chief, the son-in-law of a commissioner.
  
• The district sold seven vehicles – which cost at least $19,153 when purchased with public funds – to its commissioners, employees or volunteers for a total of $800, which the district never received.
  
• Testing of the district’s assets inventory list showed it could only account for 15 of 259 assets. The missing assets included three generators, 14 computers or tablets, five ice chests, a small utility trailer and numerous hand tools.
  
• Meeting minutes were not available for 18 of 39 commission meetings held during the audit period, and 17 executive sessions were held in which meeting minutes did not demonstrate compliance with the Open Public Meeting Act.
  
• Testing identified 13 disbursements that were not allowed per state law or district policy, as well as 37 payroll and employee reimbursements that were either unsupported or not allowed.

Today’s fraud investigation report found former Fire District 12 staff and commissioners misappropriated $145,735 from 2018 through November 2024. Additionally, auditors questioned $73,100 in spending between 2019 and 2024.

The accountability audit also published today found the district’s governing officials and management disregarded state laws and the district lacked adequate oversight and internal controls to safeguard public resources.

In September 2022, a previous fraud investigation report identified misappropriations totaling $68,672 from 2017 through July 2022, and questionable amounts totaling $95,093 in about the same period. That fraud investigation report was referred to the county prosecutor, as will today’s report.

Local citizens filed a recall for the fire district board of commissioners, but before the recall was approved in August 2023, each of the three commissioners resigned one at a time, allowing the remaining two to appoint their successors. Several people simply changed positions within the district.

The district’s insurer, citing the need for new management, terminated its coverage in 2024, bringing operations to a halt. The full board then resigned and was replaced. The current board and new staff worked with auditors to complete the reports published today, which reviewed district activities from 2018 through 2024.

Media inquiries: Director of Communications Kathleen Cooper, Kathleen.Cooper@sao.wa.gov, 564-999-0800.