The Missouri State Auditor found that Director Brad Davis of the Naylor-Neelyville Ambulance District and his family members misappropriated at least $249,247 from the district between Jan. 1, 2017, and June 15, 2023.
A report was released Tuesday by the state detailing 290 checks written to Davis, his wife, and his mother, without the board’s approval. Auditor Scott Fitzpatrick has recommended the current board work with law enforcement to seek criminal prosecution.
Amy, Davis’ wife at the time, served as the billing clerk from 2017 to 2020. His mother, Arlene, held the position of board secretary during the same period.
The report also found that Davis allocated funds for COVID-19 response and elections but neither action occurred.
The auditor found a consistent trend of questionable expense reimbursement.
The report states, “The Director, Billing Clerk, and Board Secretary were close family members, which resulted in actual or apparent conflicts of interest.”
The report alleges that Davis falsified board minutes to cover up the misappropriation. The auditor found the board itself is also at fault for not providing proper oversight and failing to perform legally required audits each year.
The state office gave the ambulance district an overall rating of “poor,” their lowest rating.
Davis served as director of the board from 1995 through 2022. The district outsourced ambulance services to Medic One in October 2016. The report shows much of the malfeasance taking place after this point with $62,718 misallocated in 2017 alone.
The State Auditor’s Office whistle-blower hotline was contacted anonymously in December 2021. The office followed up with an initial review the following February and concluded a full audit was warranted.
In the period examined by the audit, 74% of district checks were issued to Davis, his wife, and his mother. His mother indicated in sworn testimony that she would often sign blank checks.
The director issued severance payments to himself and his family regardless of their continued employment. In 2017 alone, the three family members collectively received $24,350 as severance. They all would continue to serve on the board for several years.
Davis also inappropriately directed $5,550 in bonus payments. The audit report indicates that none of these payments were reported to the IRS.
After his time in office, Davis resigned and handed over the operation of the district to the city of Naylor. Davis retained access to the district’s bank account until June 15, 2023.
When the auditor asked Davis if he would repay the unsupported payments, he replied, according to the report, “For me to repay them? For what?... Unsupported doesn’t mean undeserved.”
While some members of the board vocalized objections to Davis’s actions, the report found no timely or adequate action taken.
The board responded to the state auditor’s findings by stating their intention to, “work with law enforcement officials regarding criminal prosecution of the improper payments and falsified meeting minutes and take the necessary actions to obtain restitution.”
Furthermore, the board committed to revamping its oversight processes and more closely monitoring financial transactions.
Trevor Fox, a media representative for the state auditor’s office, said all of the information for the audit had been turned over to local, state, and federal law enforcement agencies. Fox relayed that each level of law enforcement will need to arbitrate at what level the crimes are prosecuted.
Jason Shepherd, the current president of the board, said Davis’s behavior was the main reason he sought his position. Shepherd was an EMT when the district outsourced services to Medic One due to an apparent lack of funds.
Shepherd had heard rumors of Davis’s financial misdeeds and wanted to correct them. Together with an allied board member, he successfully got the board to pass a resolution to audit the district.
Davis initially suggested a private CPA firm, but Shepherd and the board rejected it in favor of a state audit.
When Shepherd attained the office of president over a year ago, he quickly did away with the position of director altogether.
With the resignation of one final holdout, Shepherd will be the only member of the board remaining from the time of the investigation.
“Give the board a chance. Come to the board meetings and voice your concerns. I guarantee while I’m president, this will never happen again,” he appealed.
Going forward, each check will require multiple signatures, he said. Shepherd committed to accurate minutes and transparent leadership. With the tumultuous results of the state audit, he understood that the district has a lot of ground to cover to regain the trust of its residents.
The district is funded by a property tax levy. All officials are elected with the next election taking place on April 2nd.
The board will be holding its quarterly meeting at 7 P.M. on January 23rd at the ambulance garage at the corner of Jackson and Ludd Streets in Naylor.
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