A letter sent to Bismarck city commissioners provided enough information for concern that Mayor John Warford launched an independent audit that raised questions about the use of funds. The letter was signed "Whistle Blower."

The letter prompted an audit report by Brady Martz, CPA, on a bioterrorism grant Bismarck received. The report is on the agenda for the next regular commission meeting scheduled for 5:15 p.m. Tuesday in the Tom Baker Room of the City-County Office Building. The letter in question raised concerns regarding the possible mismanagement of Homeland Security money that funds the bioterrorism grant, which is allocated by the North Dakota Health Department.

Warford and City Administrator Bill Wocken confirmed that they and other local officials received the letter from an unknown sender.

"We get a lot of letters of this sort and we investigate everything," Warford said. "This letter had enough information that I called for an independent investigation. The city hired a CPA (certified public accountant) firm to check out the allegations."

Wocken confirmed that commissioners will get a copy of the audit Tuesday night.

"The audit concludes that some of the money that is in question doesn't meet the qualifications of the grant or that there isn't enough documentation to determine qualification," Wocken said.

The letter writer said that the grant funds are being used in ways other than what they're intended - instead of equipment or supplies, the funds are being used to subsidize the Bismarck Fire Department's budget, the writer said.

Fire Chief Joel Boespflug said his department has "followed the guidance that was disclosed to us and explained to us, and we have stayed within the budget."

"We don't look at this as a program for terrorism," Boespflug said. "We look at it as others helping others. We have agreed to be a good neighbor, which includes the training of personnel and acquiring equipment to help our neighbors."

Brady Martz reviewed four grant agreements between the city of Bismarck and the state of North Dakota covering a period from July 1, 2002, through June 30, 2005, involving $449,841. Representatives of the North Dakota Health Department, city of Bismarck and Bismarck Fire Department were interviewed.

"Based upon our examination of the grant contracts, the compliance requirements, the invoices-supporting documentation and interviews of individuals, it is our opinion that the most significant problem with the grant expenditures is the lack of proper documentation to support the determination whether or not the grant funds were used to supplant other state and local funds," the Brady Martz report says.

In the opinion of the report, two areas do not meet the requirements of the grants or may have supplanted other state and local funds. The first addresses unallowable transactions, with Brady Martz determining $10,617.90 is not in compliance with the grant's terms and purpose or did supplant other state and local funds.

The second, involving $78,652.98, fails to come to a final determination due to the type of transaction and lack of proper documentation to support the allocation of costs to the grant.

"This is a bigger-than-a-bread-box type of situation," Wocken said. "We received the information, reviewed it and decided with the type of questions being asked to have a third party review. We discussed it with the four commissioners and told them we were going to take it to Brady Martz. They have not yet seen the results."

For its part in the grant, the Bismarck Fire Department has been asked to address the issue at the commission meeting, according to Wocken.

Warford downplayed the importance of the allegations, saying it is more of a minor incident than a major situation. But he said the independent audit is warranted, making sure a full account is being made to the public.

The writer also questioned why the city of Bismarck is capturing the bulk of funding for Burleigh County as well as regional funding. Warford said that the city has the area's only bomb squad and hazmat people.

"Heaven forbid, but say they find a dirty bomb in Hettinger, we've taken the the responsibility of southwest North Dakota to mitigate the situation," he said.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@bismarcktribune.com.)