12/12/2018 UFSA Audit Update

Description

UNIFIED FIRE SERVICE AREA STATE AUDIT Progress Report on Audit Recommendations as of 11/20/2018 28 of 28 Recommendations Completed Finding # Finding Rec # Recommendation Statement from regarding the decision not to pursue legal action against former Chief Michael Jensen and his administration. Action Item(s) Responsible Person(s) Status As outlined by the State Auditor’s office, we believe that Former Chief Michael Jensen clearly abused his role as the CEO of this organization and took advantage of the authority provided to the position by the Board of Directors. We believe he used his position as UFA Chief, as well as other political positions he held, including being a member of the Salt Lake County Council, to manipulate the UFA/UFSA boards for personal gain. We believe that had he not held those other positions, he never would have been appointed as Fire Chief. This, combined with a failure of the past UFA legal counsel, contributed to the Board entering into a resolution and later a separation agreement that benefited Jensen through deception and limited the Board’s ability to seek recompense. Attachment A However, after discussion with outside legal counsel, we have determined that the cost to recover the misappropriated funds would be an additional cost to the public’s money with small chance of success as reflected by the Attorney General’s decision to not prosecute. Due to this, legal action will not be pursued. The Board of Directors takes responsibility for the poor choice in hiring and continuing to employ Jensen as the Fire Chief and for the loss of public funds that occurred as a result of his hiring. We have taken steps to ensure this never happens again, have addressed the audit findings and established board policies that provide a clear line of authority between the Board and its CEO. Today, the UFA has an effective Fire Chief/CEO, a detailed transparent financial budget, a strategic plan, and an engaged, healthy “trust but verify” culture on the Board of Directors. Signed and agreed upon by the joint UFA/UFSA Board of Directors 1 LACK OF CLEAR CONTRACTUAL ARRANGEMENT EXISTED BETWEEN UFSA AND UFA 1.1 Establish the services UFA will provide and the rates UFSA will pay for those services (both baseline and enhanced administrative services), including the methodology for UFA to bill UFSA for administrative, operational, and other activities.