The Fallen Leaf Lake Community Services District in Tahoe overbilled other agencies more than $700,000 for providing personnel to fight wildfires, the state auditor reported July 18. From 2016 through 2018, the district “improperly profited” from reimbursements, the auditor stated.
“Without the inflated reimbursements and if the district did not reduce expenditures or increase revenues from other sources, it would have experienced financial shortfalls,” the auditor added. “The district jeopardized its financial viability because it may have to repay the excessive reimbursement amounts.”
The California Office of Emergency Services’ “limited oversight of the reimbursement rates claimed by local fire agencies and weaknesses in the reimbursement process enabled the district to claim excessive reimbursements,” according to the auditor.