A forensic audit of Nueces County Emergency Services District No. 4 has uncovered questionable sales of military surplus vehicles to board members and poor tracking of equipment purchased with taxpayer funds.
The independent audit examined the district's purchases from the Texas Facilities Commission's Federal Surplus Property Program over a four-year period. The review found multiple violations of federal compliance requirements and significant gaps in asset management.
The district's five-member board is appointed by the Nueces County Commissioners Court and serves two-year terms. The board is responsible for protecting life and property from fire and administering the district's property, debts, and assets.
Board President Geoff Atwood purchased a 1993 AM General Humvee for $5,050 in November 2022, just 10 days after the district bought it from the Texas Facilities Commission. The rapid sale violated federal rules requiring equipment be used for its intended purpose for at least 18 months before disposal.
District Treasurer Paul Swetish also bought a Humvee that the district originally acquired in 2017 for $3,500 - a vehicle with an original government cost of more than $41,000. Both officials still own their respective vehicles, according to the audit.
The problems came to light after the district dismissed Fire Chief Lloyd Bluntzer and EMS Director Diana Bluntzer in January 2024. The auditor made multiple unsuccessful attempts to interview the former officials.
Michael Clack, the current fire chief for the district, said his primary concern is the missing equipment. “We're missing some stuff and we need to know why,” Clack said. “Anything that is owned by an ESD is the taxpayer stuff, so that stuff needs to be handled as such and be responsible.”
Regarding the Humvee sales to board members, Clack said, “That didn't concern me as much as the stuff that we can't find. We know that that stuff was not stolen and it's missing. There was some misleading done and that they thought it was OK. They were informed that it was OK to buy that and it should have gone to auction.”
Board members told auditors that several four-wheelers and ATVs purchased in 2019 were given to the Boy Scouts for projects, but current officials said they had no knowledge of the transactions. Board President Atwood told auditors he heard about the transfers "but did not know about it until about 12 months ago. He was told that they went to the Bluntzer Boy Scouts."
The audit also found that multiple pieces of equipment cannot be located, including distributing systems, engines, and containers. During interviews, current officials told auditors that distributing systems "were not around the station" and a plasma cutter was "not at the Station." The location of refrigeration equipment and various engines remains unknown.
Clack emphasized the importance of the federal surplus program to small districts. “The program is very important to small districts to be able to get equipment that we may not be able to get normally, so we don't want to jeopardize that in any way,” he said. He explained that violating the rules could result in penalties or removal from the program.
To address the issues, Clack said the district has implemented new procedures. “We have corrected that. And if anything needs to be sold, it either goes to the scales or it goes to public auction,” he said. The district has also adopted new software to track assets and expenses. “We need to record and keep record of all the items purchased for the district so that we've got a good audit trail,” Clack added.
The Texas Facilities Commission operates under strict federal guidelines requiring signed compliance statements for acquisitions over $5,000. The agreements mandate that items be used for intended purposes and cannot be sold or moved without prior General Services Administration approval.
The audit found the district acquired approximately 400 items with a total cost of $61,770 during the review period. Eight items were selected for detailed review, with four remaining unaccounted for as of the audit's completion.
Clack said the district is working to recover the missing items and that the board will decide whether to involve law enforcement. “The items that we have found, we will be getting back. The rest of the items at this point, it will be up to the board if they're going to pass that on to the sheriff's department,” he said.
