The Nevada Division of Forestry (NDF) has reportedly supplied firefighting equipment and services exceeding $32 million to other states from 2020 to 2024 without billing for these services. This financial oversight was uncovered in a recent audit conducted by the state.
The audit found that the NDF neglected to charge for approximately $32.7 million in reimbursable expenses tied to out-of-state fire incidents, which was attributed to inadequate oversight. Operating with a modest budget of $4.5 million, the division often relies on contingency funds and legislative advances to maintain operations. In 2023, the division sought a $15 million funding request, which lawmakers ultimately approved. However, the request raised concerns over financial practices within the division, prompting a detailed audit.
During a January session, Sen. Marilyn Dondero Loop (D-Las Vegas) urged the division to address billing inefficiencies to secure necessary funds for the state. Simultaneously, from 2021 to 2024, the division requested a total of $44 million to cover firefighting costs, a method critics label as confusing and inefficient. State forester and fire warden, Kacey KC, confirmed to The Nevada Independent that the division has been actively addressing the audit findings. A revised billing system is believed to have corrected many of the previously identified issues. Recent efforts have seen more than $25 million in new invoices sent, recovering $1 million so far.
Legislators and other officials highlighted the division’s financial challenges. Pete Goicoechea (R-Eureka) stressed the importance of understanding the annual costs associated with firefighting efforts and clarifying reimbursements from federal agencies or out-of-state collaborators. In fire incidents, financial responsibility is often determined by jurisdictional boundaries and the agencies involved.
With jurisdiction overlapping in nearly every fire incident, especially when fire crosses state lines, the compounding complexities have historically delayed reimbursements. Nevada often covers costs for fires originating in the state, but when a fire extends beyond state boundaries, costs are split with other states, typically according to burned acreage. KC noted that 90-95% of pending reimbursements are expected from federal agencies.
In 2023, a sizable funding request under SB480 was approved with the condition for a division audit to clarify its financial operations. Although NDF’s billing practices hadn’t been the focus in prior audits from five years ago, issues with billing accuracy were central to current findings. In light of turnover within the division’s billing department, numerous errors were identified. The audit disclosed instances of incorrect billing that resulted in both undercharging and overpaying different agencies.
During the transition from an outdated paper billing system to an automated process, further complications arose. This change, necessary to digitize and streamline operations, was not fully operational until October 2024, causing delays. Moving forward, NDF has been implementing the audit’s recommendations to refine billing practices and adjust their five-year budget strategies.
In a December correspondence with the Legislative Counsel Bureau’s audit division, KC expressed optimism about the progress made in addressing the highlighted inefficiencies. The development of an automated billing system alongside standardized protocols exists to ensure precision and accountability in financial dealings. As corrective actions are underway, additional updates detailing progress are expected by mid-April, with a comprehensive report due by October.
