Link to Original Article: https://www.capegazette.com/article/judge-upholds-first-amendment-rights-dewey-resident/163993

Restrictions coming for controversial police funds

Taylor Goebel, Salisbury Daily Times Published 1:33 p.m. ET Aug. 15, 2018

New Dewey Beach Mayor T.J. Redefer talks about the future of Dewey Beach growth.

Dewey Beach commissioners have accepted a report detailing the town's errors in bookkeeping, duty segregation and communication. 

The seven-page report from Salisbury-based TGM Group is a comprehensive investigation into capital assets and money acquired by Dewey Beach's police department and beach patrol.

The draft of the report stirred up controversy during an audit committee meeting Aug. 3, after which two audit committee members resigned. Member Diane Tenhoopen said she left the group because she felt the town was not taking issues like police accountability and financial management "seriously." 

Charges of theft and disorderly conduct were brought against an attending property owner who is also a member of a citizen watchdog group, after he allegedly took home a copy of the draft report. The draft was made public during the meeting. 

Background: 2 resignations, 1 theft charge over Dewey audit

Dewey officials sought the audit, in part, as insight into the police force's reselling of equipment from the military surplus program.

The TGM Group report examined the police department's surplus military equipment valued at more than $5,000, per the town's capitalization policy. The fair market value of those 13 vehicles totaled just more than $210,000. 

The Law Enforcement Support Office program allows police departments to procure free military equipment. More than 7,000 law enforcement agencies across the country have enrolled in the program, according to its website. 

The Dewey Beach Police Department generated controversy in 2016, when the agency began selling the surplus military equipment it could no longer use. This prompted some residents and town officials to question oversight policies and financial accountability.

Equipment with a demilitarization code of "A" — like laptops, generators and certain vehicles — are salable, per Law Enforcement Support Office standards. 

Some of the equipment is not usable and, therefore, a liability, Town Manager Scott Koenig said in a previous interview. 

According to phase I of the TGM report, Dewey Beach had "no documented internal control, policies and procedures with regard to the LESO program."

The money in two of Dewey Beach Police Department's restricted accounts was accounted for, but the report stated there was an oversight in which some money went to the wrong account. 

Commissioner Dale Cooke said while he didn't feel anything illegal went on regarding the military program and accounting oversights, he said none of the administrative employees "kept tabs."

"It’s my opinion that the town perpetuated an environment of 'Do what you want, just make sure it doesn’t cause any problems,' " he said. 

Roy Geiser, a certified public accountant for TGM Group, said the report "alludes" to Cooke's observations.

TGM Group conducted a procedure to find equipment that might have been sold that the firm didn't know about, and worked with Wilson Auction Sales for searches on checks that were cut. No checks surfaced that the town didn't already know about, according to Geiser.

The town commissioners approved sending the agreed-upon procedures report to the audit committee for its reviews and recommendations. The audit committee is set to meet at 9 a.m. Friday, Aug. 17.

More Dewey: New town manager aims to bring accountability to Dewey Beach

In a bid to make a "firm commitment" on the town council's side beyond the audit committee's recommendations, Commissioner Gary Persinger motioned to place a time frame on deciding upon the town administration's handing of unusable military equipment going forward. 

"I know there are people who are frustrated, and I was trying to find some way of getting additional information on all the other equipment that was acquired but doesn’t meet that $5,000 threshold," he said. 

An inventory of equipment acquired thought the military surplus program is available to the public through the federal government.

The Dewey motion states that within the next five months, the town manager will work with the police department to identify what town-owned Law Enforcement Support Office items fill specific and demonstrable needs. Within the next eight months, the town manager will work with the police department, this time to dispose of the remaining items.

The commissioners approved the motion.

Excess items will be reported separately to the council, and any funds generated from equipment disposal will be deposited into the police fund, Persinger added.

TGM Group also found an off-sheet balance account belonging to the Dewey Beach Patrol that contained just more than $23,000. The account was mostly comprised of donations, and withdrawals were "mostly used for cost incurred for the annual national beach patrol competition," according to the report.

That account has since been turned over to the town, according to officials.