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FOCUS | Accountant says county failed to audit Jamey Noel's nonprofit

The health department claims a simple 990 tax filing counts as an "audited financial statement." A local accountant disagrees.

JEFFERSONVILLE, Ind. — The WHAS11 FOCUS team has found Clark County government, through the health department, was likely not getting all required financial documents it should have from one of Jamey Noel's former entities.

Noel, the former Clark County sheriff facing 25 felonies, was the CEO of at least four fire and EMS companies up until he was placed on administrative leave in November, and then officially removed in January. Noel has been investigated by Indiana State Police (ISP) for over six months for allegedly spending millions of public dollars on personal items.

Clark County signed a contract with New Chapel EMS in October 2020, after having response issues with its former provider AMR. The health department said in the summer of 2020, AMR was giving a 49% "non-transport rate", meaning no vehicle was available to be dispatched. A health department spokesperson said the national average is 15%.

Clark County has paid New Chapel $2.9 million since 2020, and the current contract goes until the end of 2025.

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The contract was signed by the Clark County Commissioners but New Chapel is required to follow the Clark County Public Safety Plan, which is governed by the health department. As such, the health department is the keeper of any records from New Chapel.

The contract says, "all permitted providers shall file an annual audited financial statement" with the health department.

FOCUS submitted a request under the Indiana Access to Public Records Act asking for all "annual audited financial statements." In response, the health department provided the cover page of a Utica Township Volunteer Firefighters Association 2021 tax filing (which is the same organization as New Chapel EMS), and a letter from Secretary of State Todd Rokita certifying New Chapel EMS as a nonprofit in 2003.

FOCUS asked the health department why there was no evidence of an actual audit being done, and the health department said it was never required to get one because the ordinance never defined "audit."

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"Ordinance 2-14 states 'all permitted providers shall file an annual audited financial statement'. This particular construct of the ordinance has no interpretation in the ordinance itself, no definition and is substantive in nature," the health department said in an emailed statement. "Therefore, has been interpreted to request profit/loss type statements to assure continued financial viability...The interpretation of 'audit' has never meant to be forensic in nature."

FOCUS interviewed a local certified public accountant (CPA) who said any tax professional would know a 990 tax filing doesn't count as an audit.

"A 990 is a tax return. It is prepared for the Internal Revenue Service (IRS)," Carol Flynn said, a CPA in Jeffersonville. "A financial audit is --literally-- a CPA or a group of them come in and examine your books, they go through your financials, they look at your invoices, your expenses, your income."

District 2 Clark County Commissioner Jack Coffman, who signed the EMS contract and Clark County Public Safety plan, declined to comment for this story. Clark County Attorney Scott Lewis also deferred to the health department.

State Rep. Ed Clere, R-New Albany, thought it created an unnecessary second step to make the health department the keeper of these records.

"I don't know why, in this particular case, the responsibility was given to the health department," Clere said. "But, regardless of who has responsibility, there needs to be transparency and accountability."

The records request FOCUS got back from the health department also contained proof that New Chapel EMS has had response time issues as well. The entity was supposed to submit a corrective action plan to address these by Feb. 1, and the health department said it still has not gotten it.

The department said there have been talks about who will continue to provide EMS service, but the county doesn't want to do anything without having a new plan in place.

This is the second contract FOCUS has found between a Noel entity and a government entity that was not getting required oversight. The New Albany Township Fire Protection District trustees, who have paid Noel over $7 million for services, never asked Noel for a financial document in seven years of the contract.

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