FJBC credit cards canceled as financial investigation continues
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ST. IGNATIUS – A financial investigation, a new hydrologist and an increase in operation fees were discussed during the May 9 Flathead Joint Board of Control meeting.
Chairman Ray Swenson said Lake County Attorney Steve Eschenbacher is continuing to work on the FJBC’s internal investigation into operations, procedures and accounting for the last three years, from 2014 to 2016.
A preliminary investigation done by Anderson ZurMuehlen’s Jane Schweitzer revealed that funds totaling an excess of $200,000 have slowly been removed from the FJBC account for the past several years, according to two sources who have read the findings and wish to remain anonymous.
Several board members requested an outside investigation when it was noticed that Executive Manager Johanna Clark allegedly changed her contract without board approval and issues with funds were found. The board voted to put Clark on leave without pay or benefits on May 5.
Swenson said he was restricted from explaining the details of the case while the investigation is underway. He did say that all credit cards held by the FJBC have been canceled.
FJBC attorney Bruce Fredrickson said the board’s insurance company was also put on notice as “an abundance of caution” concerning the potential for “claims down the road” as they relate to the investigation.
Commissioner David Lake asked the attorney if board members appointed during the time in question were vulnerable to liability due to the approval of two audits performed in the past. Attorney Fredrickson said it was “too premature to comment” until the end result of the investigation was determined. “It’s impossible to say right now,” he said.
Swenson said the board was looking for someone to fill the executive manager’s position. Board members are currently filling those duties.
In other news, the board reorganized after the May 2 Election to seat a newly elected member. In the Flathead District, Paul Guenzler retained his seat with 36,188 votes to David Passieri’s 21,730. In the Jocko District, Blaine Edwards won with 2,512 votes to Jennifer’s Kaplan’s 1,185. In the Mission District, Gene Posivio retained his seat with 5,941 votes to Roy Anderson’s 2,415 votes.
After board vote, Swenson continues to hold the chairman’s position for the entire joint board. Guenzler is vice chair, and Posivio is the board secretary/ treasurer.
Each district voted to fill specific positions during the meeting. In the Flathead District, Guenzler is the lead chair; Lake is the vice chair; and Janette Rosman is treasurer.
In the Mission District, Ray Swenson is the chair; Tim Orr is vice chair; and Posivio is treasurer.In the Jocko District, Boone Cole is chairman; Dean Brockway is vice chair and treasurer.
The board was not able to vote for the member at large due to an error on the agenda that stated the member would be re-seated. It should have used wording regarding reselection. As per bylaws, an item on the agenda can’t be changed so the matter will be addressed at the next meeting. Rosman stated to the public that the board wants to follow board policy as per the bylaws.
The board also voted to hire Kurt Hafferman out of Kalispell to work on the water rights adjudication process before the issue goes to Water Court. The state is requiring that all issues concerning water rights claims be addressed before they make a final ruling, possibly in 2018.
Flathead Indian Irrigation Project manager Pete Plant was at the meeting to inform the board that the $7.50 increase in operations and maintenance fees was put on the Federal Register for rate adjustments with the Federal Bureau of Indian Affairs.
Plant said people are now able to make public comment about the increase before it’s approved or not approved by the BIA. Comments can be sent to Division Chief Yulan Jin, Division of Water and Power, Office of Trust Services, Mail Stop 4637-MIB, 1849 C St. NW., Washington, D.C. 20240 or by phone at 202- 219-0941. The increased fee would be used to hire additional staff with the FIIP, weed control, deferred maintenance, and supplies.
