Alfalfa Fire’s attorney says investigation ‘advisable’ over handling of FEMA grant funds as residents call for fraud, waste reports to feds

Editor's Note: The Prineville Review is a content partner with KTVZ News through the Oregon Journalism Project

By: Justin Alderman

ALFALFA, Ore. (PRINEVILLE REVIEW) — Alfalfa Fire District officials acknowledged Wednesday night they still do not have access to critical banking records needed to determine what happened to potentially hundreds of thousands of dollars in state and federal grant funding, while new questions emerged over former Fire Chief Chad LaVallee’s continuing role with the district more than two months after his resignation.

District legal counsel Jered Reid spent much of the opening portion of the packed meeting outlining financial problems he said he only recently began looking into.

Among them was an approximately $165,000 bill for self-contained breathing apparatus equipment supplied by MES/SeaWestern — equipment the district previously said was purchased after receiving a federal FEMA Assistance to Firefighters Grant intended to fund the purchase.

“The actual amount that is owed to this particular company is $165,000,” Reid told the board.

Of that amount, $119,765 is now due, with another roughly $45,000 remaining.

But Reid said the expenditure was never properly incorporated into the district’s current budget.

“I was under the impression that the [$120,000] would be paid during the fiscal year,” Reid said, explaining why the current budget assumed only about $50,000 in cash on hand despite the district actually having closer to $170,000 at the time.

Reid said he also didn’t know another approximately $45,000 would remain owed after the initial payment — an additional obligation the Prineville Review uncovered and reported earlier this month after digging into the questionable invoice and speaking with MES / SeaWestern.

“So that’s where we’re at with that particular invoice,” Reid said.

The district will now need to conduct a supplemental budget process and public hearing before making the expenditure.

Reid also confirmed he has now been in contact with MES / SeaWestern.

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