Metro takes over union audit

Keith Paul

Thursday, May 11, 2000 | 11:02 a.m.

Already faced with a power struggle inside the Metro Police union and hundreds of officers quitting the association, union officials were told Wednesday Metro's administration was taking over the audit of the union's self-funded health plan.

"It was confirmed for me that the (Las Vegas Police Protective Association) has not started a certified audit of its insurance fund which we asked for a year ago," Metro Comptroller Lois Willis said. "The collective-bargaining agreement grants us the authority to audit all the activities of that insurance fund."

Concerns over the financial condition of the insurance plan led the Metro administration to step in and contact an accounting firm to quickly start an audit, Willis said.

Union President Andy Anderson said internal politics led to an attempt by some union board members to oust him from office using the insurance fund as a front. But two union officials fired in the wake of the failed attempt to remove Anderson say the issue has always been the concerns and complaints about the insurance fund and the lack of an audit.

"We said there were some problems with the insurance a couple of months ago and tried to talk about it, but those conversations never went anywhere," said Sgt. Toby Maldonado, who had been appointed to the board by Anderson and was fired last week when the board voted to retain Anderson as president. "I'm glad that (Metro's administration) is taking over the audit. They should have done it a long time ago."

Whatever the reason for the upheaval, more than 600 police officers have reportedly quit the union with hundreds more either talking about it or requesting forms necessary to leave the 2,200-member union.

Officers started quitting the union after Vice President Dan Holley was fired May 4 after the board voted to keep Anderson. Both Holley and Maldonado say they are not encouraging officers to either quit or stay in the union.

Anderson, in an effort to stop the membership from leaving, announced this week he would resign effective July 2001 -- after the next legislative session and the negotiation of the next collective bargaining agreement.

Maldonado said the Anderson's announcement is just "smoke and mirrors to appease some of the people out there" and most likely won't stop officers from leaving the union.

"It's time for a change, and it's time for him to step down," Maldonado said.

Willis said the request for the audit didn't stem from the internal politics of the union, but the financial responsibility to the taxpayers and to the officers who get their health insurance from the union to ensure the fund is properly maintained.

A review report was given to Metro in November, but Willis said she then requested a full audit of the $17 million-a-year self-administered health plan that covers about 8,000 officers, civilian employees and their dependants. North Las Vegas Police officers, Lincoln County Sheriff's Office deputies and Las Vegas Marshal's employees are also covered under the health insurance plan.

"The reason I asked for the audit was there was a drain on the reserves that quickly depleted" the reserves from $3 million to about $100,000, she said. "Until (Tuesday), I was under the impression that an audit would be completed by the first week of June. There have been some concerns voiced about the fund, and we want a quick resolution to assure the taxpayers and the officers."

Willis said since the union increased co-pays and reduced certain benefits, the reserve fund has been able to recover about $1 million.

Anderson, who had resisted doing a full audit, said the audit was delayed because an actuarial study needed to be completed first. Then there were delays in paperwork with the accounting firm.

Willis said she will meet with the accounting firm DeLoitte & Touche today to start the audit. She said after the meeting she would have an idea when the audit would be completed.

Since Metro has taken over control of the audit, the cost of the review will come from Metro's budget instead of the union's funds.

Anderson says he welcomes the audit just to the reassure the membership the health insurance fund is in good shape and all of the money is accounted for.

Anderson said the perception of problems with the health insurance plan are fueled by those who want him removed from his position. He claimed once the audit is completed, there will be no concerns about the plan.

Holley and Maldonado said the audit will show the union pays too much to a company to manage the plan and could save at least $500,000 by going with another company. Also at issue is the subsidy given to retirees to pay for a portion of their health care cost which costs more than $1 million a year.

If officers continue to quit the union, it is unclear if a new association would be started or if officers would go to some of the other existing associations. It is also unclear what would happen to the collective bargaining process if the Police Protective Association loses a majority of its members.

Keith Paul covers crime and public safety for the Sun. He can be reached at (702) 259-4057 or by e-mail at keith@lasvegassun.com.