JACKSON- Following a joint investigation by the Mississippi Insurance Department and the State Auditor’s Office, Commissioner Mike Chaney and Auditor Stacey Pickering have issued demands against two former Sledge officials, mayor and city clerk, and the current city clerk.
Former Mayor Bernard Handy, former City Clerk Mary Allen, and current City Clerk Yvonne Amos were issued demands for the repayment of illegally spent funds granted to the city through the Fire Insurance Rebate Program. The three demands total $21,977.79 and include interest and investigative costs. Total grant funds being demanded is $13,579. These funds were awarded to the City of Sledge based on their ability to meet all the compliance requirements as set forth through the program.
“These funds were transferred from the City of Sledge Fire Department Account to the City’s General Fund,” said State Auditor Stacey Pickering. “The funds were specifically for expenditures relating to the City’s fire protection; however, these funds were spent on general operating expenses which are not allowed by State Law.”
“These rebate funds are vital to the State’s fire services. It is imperative that we insure that these funds are used as State Law requires. The funds are needed to save lives and property from the effects of fire. This is why we perform audits on these grants. We will continue to perform the necessary audits to insure that these state funds reach the fire departments that need them for your protection,” Commissioner of Insurance and State Fire Marshal Mike Chaney said.
The Fire Insurance Rebate Program was established in 1951 by the Mississippi Legislature and was intended to provide fire protection in areas of the state where fire insurance was not available due to the lack of fire protection. Over the years, the Legislature has continued to increase the funding for the program from the original $250,000 set aside in 1951 to the current total allotment of $15,593,339.28. In 1951, there were 350 fire departments and 5,000 volunteer fire fighters across the state. In 2010, the number of fire departments has increased to 757 and includes more than 16,000 firefighters that respond to more than 150,000 incidents each year.
By providing these grants, more Mississippians have access to fire insurance and more affordable rates.
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