The Nevada Division of Forestry (NDF) has not billed for firefighting equipment and services provided to other states. This oversight was discovered during a recent audit. The NDF helped fight fires in other states from 2020 to 2024. These services amounted to over $32 million. The state did not charge for these services due to a lack of proper oversight. This financial mistake was uncovered through the audit.
Audit finds nearly $33 Million in unbilled firefighting costs due to poor oversight
The audit revealed that NDF did not bill approximately $32.7 million for out-of-state fire incidents. This was caused by poor oversight within the division. The NDF works with a modest budget of just $4.5 million each year. To cover costs, they often rely on contingency funds and money from the state legislature. In 2023, the NDF requested $15 million in additional funding. Lawmakers approved the request. However, this raised questions about how the Nevada Division managed its finances, leading to the audit.
The NDF’s financial practices came under scrutiny after they requested extra funding. During a legislative session, Sen. Marilyn Dondero Loop from Las Vegas pushed the NDF to improve its billing practices. She argued that it was necessary for securing needed funds for Nevada. From 2021 to 2024, the NDF requested a total of $44 million to cover firefighting costs. Critics called this process confusing and inefficient. The audit aimed to address these concerns and find out where the problems were.
Nevada Division of Forestry takes steps to address billing problems
Kacey KC, the state forester and fire warden, assured the public that the NDF is addressing the audit’s findings. They are implementing a new billing system. The new system is already fixing many of the problems identified in the audit. The NDF has already sent out over $25 million in new invoices. So far, they have recovered $1 million. These steps are part of the effort to improve efficiency and make sure these mistakes do not happen again in Nevada.
Nevada’s financial challenges highlighted
Nevada’s financial challenges have been a point of discussion among state officials. Pete Goicoechea, a lawmaker from Eureka, stressed the need to understand firefighting costs better. He said it was also important to figure out how the state gets reimbursements. When fires happen, who pays depends on the jurisdiction of the fire. This includes the state and the agencies involved. As fires often cross state lines, this makes reimbursement difficult to manage.
Complicated reimbursement process
When fires cross state lines, it adds another layer of complexity to the reimbursement process. Nevada usually covers the costs for fires that start within its borders. However, if the fire moves to other states, they split the costs. They usually divide expenses based on how much land burned in each state. KC noted that federal agencies owe 90-95% of the pending reimbursements. These reimbursements are crucial to managing fire response costs.
Audit reveals errors in billing process
The audit found that the NDF had made billing mistakes in the past. These errors resulted in both undercharging and overpaying various agencies. This is partly because of turnover in the division’s billing department. The audit found that the old system was not accurate enough to keep up with the demand. Many billing issues stemmed from outdated processes in Nevada.
The NDF had been working on a transition from a paper-based billing system to an automated one. This change was necessary to streamline operations and improve accuracy. However, the automated system was not fully operational until October 2024. The delay caused more problems, as the new system wasn’t able to keep up with the billing needs until then. Despite this, the NDF is committed to fixing the problems and ensuring they don’t happen again.
Moving forward, Nevada Division of Forestry works to implement audit recommendations
Now that the audit recommended changes, the NDF focuses on improving its billing system. They refine their operations to ensure accurate and efficient billing.The NDF is also adjusting their budget plans for the next five years to better manage firefighting costs for Nevada. The new strategies aim to prevent mistakes and ensure the division can function properly with its limited budget.
Kacey KC shared his optimism in December about the progress the NDF made. He mentioned that the team already developed an automated billing system. This system, along with new protocols, should improve financial management. KC assured that the team will share further progress in the coming months. Nevada will release updates on the improvements by mid-April and submit a full report in October.
