A truck that may or may not have been worth $800 is at the center of an audit of the Keokuk County Emergency Management Agency.

An investigation by State Auditor Rob Sand questions whether EMA Coordinator Larry Smith shorted the agency thousands of dollars during the purchase of a new county vehicle in August 2018. According to the report, Smith was authorized to purchase a 2018 Chevrolet Silverado from Deery Brothers in Pleasant Hill and trade in the agency’s 2006 Ford F-350. The net purchase price of the Silverado totaled $35,810 after the Ford was traded in for $800, which Smith then bought back from the dealer the same day at the same price.

In Sand’s analysis, the Ford’s $800 valuation significantly underestimated the Kelley Blue Book value, which ranged from $6,600 to $12,500 and the National Automotive Dealers Association estimated value between $9,100 and $14,400. Sand’s audit report claims because the trade-in was valued below its worth, the County paid more for the Silverado than they should have while Smith purchased the Ford at a significant savings.

In the audit report, Smith claims the dealership had a “bad experience” with the F-350 series of Ford because it was prone to engine troubles and other factors contributing to the low valuation. However, a salesman for the dealership said the trade-in value was low due to wear and tear, rust and engine issues.

Sand’s office recommended Keokuk EMA implement a policy to ensure maximum trade-in value is received when purchasing new vehicles, ensure all agency disbursements are reviewed and approved by commission members, and expenses are sufficiently documented. The state audit also identified almost $1,000 in other EMA expenses that were or may have been improper under Smith’s watch.

Link to Keokuk County Emergency Management Agency audit: keokuk-county-ema-report