Metro: Union audit results will be posted

Keith Paul

Friday, May 12, 2000 | 10:23 a.m.

An independent audit of the police union's insurance fund will take as long as 10 weeks, but once finished, the findings will posted on the department's website, Metro Police administration officials said.

Metro Comptroller Lois Willis met with the accounting firm DeLoitte & Touche Thursday to begin the audit of the Las Vegas Police Protective Association's $17 million-a-year, self-administered health plan. The audit and accompanying actuarial study will cost between $30,000 and $60,000.

"Everyone thinks we're going to keep this secret, but as far as I'm concerned it's a public record," Willis said.

The accounting firm will use union files for the audit to review 1999 financial records. The firm will use past and present records during the actuarial study to make a prediction of the long-term viability and funding needs of the health plan.

Some union officials said they had previously raised concerns about the health insurance with union President Andy Anderson. They say those concerns were ignored and an internal power struggle started in the union with a vote that approved the process to remove Anderson.

Last week another vote was taken by the union's board and Anderson was retained as president. He then fired two of his appointments -- Vice President Dan Holley and board member Toby Maldonado.

Since then, hundred of officers have reportedly resigned from the union.

On Tuesday, Willis discovered an audit -- that was supposed to be under way -- had not been started. The Metro administration decided to then oversee the audit, a move which is allowed by the collective bargaining agreement.

"This is an independent audit and they will go in and uncover the truth," Willis said. "If the audit finds concerns, I can assure you those concerns will be addressed by the management (of Metro) or they could determine everything is fine and the issue can be put to rest."

She said the auditors will look into the concerns that have been raised, including those who say the union pays too much to a management company in administrative costs.

Willis asked for an audit in May 1999 when the insurance plan's reserve fund of $3 million had been depleted to about $100,000. Willis said the fund then ran into a deficit, but by raising the deductible and co-payments since January, the fund has been able to replenish to about $1 million.

For each officer without dependents, the union gets $258.30 a month paid into the insurance fund from the Metro Police budget. For each officer with dependents, the union gets $404.78 a month from Metro.

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.