Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, November 30, 1995 TAG: 9511300056
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: S.D. HARRINGTON STAFF WRITER
DATELINE: LENGTH: Medium
The independent accounting firm is trying to determine if they all result from poor bookkeeping or if some are from theft, City Manager Randy Smith said.
After investigations of two of the rescue squad's accounts began earlier this year, the squad's board of directors asked the city to audit all of the squad's books.
Salem had been auditing the $90,000 it gave the squad each year, and agreed to the full audit in March.
Finance Director Frank Turk said the remainder of the squad's annual operating budget is between $100,000 and $125,000, mostly from public contributions.
Former city councilman and squad Capt. Garry Lautenschlager was convicted this month of embezzling more than $20,000 from the squad's Wiley Fund during a three-year period. That time included his first seven months on City Council.
The 23-year squad veteran was the only member of the Wiley Fund's oversight board authorized by the bank to withdraw money from the fund.
A five-month state police investigation showed that he dipped into the fund 30 times for his personal use during the three years. His lawyer said some of those withdrawals were legitimate.
Lautenschlager is to be sentenced in January.
Former squad Chief Earl Ray Houff Jr. was convicted in June of stealing more than $1,900 from the squad's Good Neighbor Fund.
Turk could not say if more theft charges would be brought, but he did not rule out the possibility.
Smith said he should receive a report on the audit's findings by late next week. He then will present the findings to City Council, where they will become public record.
Since Lautenschlager's and Houff's resignations from the rescue squad, its leaders have taken several steps to tighten accounting practices.
The volunteer squad has hired an outside bookkeeper, consolidated several accounts and toughened its policies for fund disbursements, said Chief John Beach.
The city also will continue to audit the squad's books annually, Turk said.
Salem isn't the first government in the Roanoke Valley to get involved in its rescue squad's accounting.
Both Roanoke and Roanoke County require annual external audits of their crews' books.
by CNB