13 Investigation: Fountain’s CFO examines the financial problems of the city of Florence

FLORENCE, Colo. (KRDO) – The City of Fountain’s chief financial officer visited Florence City Hall this week to help review financial issues, according to Scott Trainor, director of Fountain City.

Trainor said the director of Fountain Finance was there on Wednesday to provide another look at policies or issues the city of Florence wanted them to look at.

It comes after 13 Investigations uncovered missing taxpayer money tied to unauthorized interest-free loans to City of Florence executives and staff from 2013 to 2018.

Last week, the Florence Police Department was also suspended from a federal program after failing to show listeners nearly $7,000 worth of military equipment they borrow from the federal government.

“We understood that they already had an auditor looking into issues such as the so-called interest-free payroll loans, DRMO programs and the like, but I believe they wanted our CFO to meet with their CFO to look into other issues. “Other broader post-audit issues. Those items would likely be identified through their audit and then our CFO would have a better idea of ​​what those issues are or were,” Trainor said in a statement to 13 Investigations.

The Fountain Police Department is not assisting with any type of investigation at this time, according to Police Chief Chris Herberer.

“Our leader, Chris Heberer, coordinated directly with their leader and they decided it was best to wait so as not to get in the way of what CBI might be doing,” the town of Fountain said in a statement.

13 Investigations has repeatedly questioned Acting City of Florence Director Tom Piltingsrud in recent weeks regarding various corruption allegations and the Colorado Bureau of Investigation’s active investigation into the city. He largely did not answer specific questions. KRDO NewsChannel 13 is also seeking to return to the City of Florence’s press release listings, but Piltingsrud has not responded to that request either.

Piltingsrud responded to questions from citizens of Florence about earlier confusion over which agency is investigating the city of Florence.

Email from Florence ratepayer to Acting City Manager Tom Piltingsrud sent April 5, 2022

Piltingsrud responded to Citizen the next day with lengthy answers to questions, including answers about the town’s financial problems.

Here is Piltingsrud’s full answer to these questions:

  1. Without trying to be flippant, the definition of inquiry is investigate to find out the facts. If you are referring to a criminal investigation, then no, the City of Fontaine is not conducting such an investigation. They’re just there as another pair of eyes to help learn the facts. The financial expert from the town of Fountain is here today with the financial officer from Florence looking at the estates. Obviously, if criminal activity was discovered by Fountain’s expert, a notice to the prosecutor would be sent. Police experts will monitor the ongoing tax assistance.
  2. Ongoing Audit by CPA Uli Keeley of Prospective Business Solutions, LLC concluded the field audit. It is the physical examination of the financial documents on the spot. CPA Keeley is now in the process of completing the written verification, which I hope will be received by the City in May. All audits are public knowledge.
  3. The $280,000 “anomaly” discovered by Sunny Bryant stemmed from a 2013 audit. In 2013 and the prior year, the Swimming Pool Fund was presented in the audited financial statements as a business fund on a full accrual basis. In 2014, it was determined that the Swimming Pool Fund received a substantial portion of its funds via a transfer from the General Fund, therefore could not be declared as a corporate fund (corporate funds must be self-sustaining). Pool Fund has therefore changed from a corporate fund to a government fund. Government funds are reported on a modified accrual basis. Since the only assets reported in the pool fund were fixed assets, the City’s initial net position from government operations in the government-wide financial statements was restated to include pool fund assets. The government funds opening fund balance did not require restatement as the pool funds did not report a fund balance on a modified accrual basis. Email from Keeley dated April 5, 2022. As Keeley indicates, the “anomaly” dated from 2013-2014 – about 4 years before – the current financial officer taking office.
  4. I haven’t had any of my voicemails returned by the DA regarding the CBI.
  5. I can only agree with your statement regarding the confusion of statements made regarding the CBI and the town of Fountain. To the extent that I may have contributed to some confusion, I apologize. I could ask KRDO to do the same, but I already know their answer.

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