Meeting of January 21, 2026

Okay, if everybody stand, we'll have the pledge of prayer. I — pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. — Okay. This morning, I've asked Squire Greenwell in prayer this morning. — Bow with me, please. Heavenly Father, thank you for today. Thank you for giving us this opportunity to come together. We know it's a cold morning, but the sun's shining and we know it's coming from you. And Lord, just uh be with us as we're all sinful people. And we just ask for your forgiveness for our sins. And uh be with us now as we conduct the county business to in a way it' be pleasing to you. All this in Jesus name. Amen. — Amen. — Thank you, Eric. At this time meeting up the roll call, please. — Squar Armstrong here. Squar Beavenon here. Squar Green here. Judge Lucas here. Squar Albright here. — Squar Moore here. — Square Henny here. — Okay, let reflect everyone's present. Our county attorney, she has court this morning, so she's not going to be with us today. — The first item of business is approval

of minutes of the December 20 December 15th, 2025 meeting. I'll entertain a motion to approve those minutes. — Second. — Okay. Motion by Armstrong. — Okay. Squire Armstrong. Second. Squire Green. Any questions? Hearing none. Take — Square Armstrong. — Square Beavenon. Yes. — Square Greenville. Yes. — Judge Lucas. Square Albbright. Yes. — Square Moore. — Square Henny. — Yes. — Okay. Minute to approve. Next item is transfers. And I'll entertain a motion to approve transfers. — I'll make it. — Motion Square Mo. Is there a second? Second Hing. Any questions? Hearing none. table. — Squire Beavenon. Yes. Square Greenwell. Yes. Judge Lucas. Square Albright. Yes. — Squire Moore. Yes. Squire Henning. — Yes. — Square Armstrong. — Yes. — Okay. Transfer is approved. Next item is claims. I'll entertain a motion to approve claims. — I'll move. Motion Squire Armstrong. Is there a second? — Second. Second. Squire. Albbright. Any questions? — I've got a question. — Yes. Um, did we decide to stop doing the step works? — Yes.

— Well, this the the claim that's on here. Are — you talking about the claim that's on here? Yeah. — Okay. In the text that I sent you, that is we got a grant for that. So, they gave us the money and where you have to turn around and pay that bill. — Okay. So yeah, we we are not doing anything after July and that's a September bill, but it's it's a wash. — Okay, cool. — I think DOC Terra can elaborate gave all county jails um a grant for some reimbursement on that. So that's what we have. — I must have read that text. I missed that. But — okay, — that's perfect. — Sorry. Yeah, we still use uh step works, you know, for for various things. And the the grant you're talking about, you're we're allowed so much uh you know, for for d various whether it's an injection or certain medications, but yeah. — Okay. — Okay. Any other questions? Hearing none. Take a — square Greenwell. Yes. Judge Lucas. Squire Albbright. Yes. — Squire Board. Yes. Squire Henning. Yes. — Squire Armstrong. Squire Deon. — Yes. — Okay. August. Yes. His claims are approved. Next item is the first There is no old business. First item, new

business is the McDaniels Volunteer Fire Department. We have Mr. Chris Wooley with us this morning. — All right. Thank you very much for allowing me to come in this morning and talk to you guys. A couple of things that I wanted to bring up to you. got to call the judge ahead of time and let him know uh with some uh discussion about uh one of the issues with the department members and um what's his name? — Digging digging deeper into things. Uh judge, we are not going to relinquish that property. We are going to hang on to it. Also, um, in reference to the motion that was passed concerning the, uh, audit for McDaniel's Fire Department, uh, I want to read a few things to you before you go forward with that. If you will give me a few minutes and I'll, uh, entertain you on this matter. McDaniels Fire Department appreciates a work working relationship with Bre County. We value transparency and accountability and responsible stewardship of public funds. We take responsibility seriously as well. My purpose today is to clearly and

respectfully address the legal authority related to audit requirements and audit cost sharing and fund conditions as they apply to McDaniel's Fire and Rescue. McDaniel's Fire and Rescue is an independent nonprofit corporation organized under Kentucky law and recognized by Internal Revenue Service as a 503C. While we provide essential public safety services and receive funding through county fire dues, we are not county office department or fiscal court funding. The legal distinction matters because the difference different statutes apply to county government entities versus nonprofit organizations. KRS64810 governs audits and county government books, accounts, and offices. It allows fiscal court to engage in certified public account engage a certified public accountant to audit county records when the state auditor declines and places responsibility for those audit costs on a fiscal court. The statute does not grant authority to mandate audits of independent nonprofit

organizations, nor does it authorize cost sharing, cost shifting, or county initiated audit to a nonprofit fire department. Audit and financial review requirements applicable to nonprofit volunteer fire departments are governed by state law. specifically KRS95A.055 and the regulations of Kentucky Fire Commission. Those laws establish when the fire department must undergo financial review or an independent audit based on review thresholds and reporting requirements. The Kentucky Fire Commission, not the fiscal court, is the entity granted statutory authority to determine audit frequency and enforcement for nonprofit fire departments. McDaniel's Fire Department complies and has complied with all applicable state audit and financial review requirements as of this year 2025. We fully acknowledge that we receive county fire fire dues and that those funds are a public in are public in nature. We also fully acknowledge

accountability for those funds. However, receiving county fire dues does not convert McDaniel's Fire and Rescue into a county agency, nor does it extend county audit statutes to any independent nonprofit organization. Accountability for fire dues is already addressed through the statutory framework established by the general assembly and administered by the Kentucky Fire Commission. There is no statute that authorizes the fiscal court to mandate a second independent audit of a nonprofit fire department within the same fiscal year once the state requirements have been satisfied. Likewise, there is no statute authorizing the fiscal court to require a nonprofit fire department to share in the cost of an audit initiated solely at the county's discretion. Any additional audit requirements or audit cost sharing obligations must arise from clear statutory authority or from a written agreement mutually agreed upon by both parties. No such authority or agreement exists for 2025. I want to be clear. McDaniel's Fire and

Rescue is not refusing transparency. We are not resisting oversight. We are simply asking that audit requirements, cost obligations, and funding conditions follow Kentucky law and the framework established by the General Assembly. We respect the fiscal court's responsibility to safeguard the public funds and we share that goal. At the same time, oversight must remain within lawful boundaries. Unilateral audit mandates, cost shifting or funding threat threatens or excuse me, funding threats that exceed statutory authority place unnecessary strain on volunteer fire departments. not only McDaniels but all of them and risk diverting limited resources away from public safety. McDaniel's Fire and Rescue remains committed to cooperation, accountability, and continued service to the citizens of Breenidge County, and we respectfully request that any audit cost sharing requirements, additional audit demands, or funding conditions for