Officials: Mid-Sussex Rescue Squad Treasurer misappropriated over $100K in organization funds
Officials released information related to an audit of a local non-profit organization, after they say a corporation official misused funds totaling over $100,000, in Sussex County.
On Wednesday, the Delaware Office of Auditor Accounts says they investigated several financial misconduct allegations regarding Treasurer of the Mid-Sussex Rescue Squad, Inc. Officials report that a total of $117,857 was misused for the sole benefit of the Treasurer. The alleged misappropriation happened from 2011 through 2016.
The Mid-Sussex Rescue Squad Inc. is a non-profit corporation that provides ambulance rescue services to all individuals in need. The organization is located in Millsboro, DE.
Investigators released for following information regarding the misappropriated funds totaling $119,877:
-The former Treasurer of the Squad initiated a total of $112,645 of unauthorized cash withdrawal transactions from the Squad's bank accounts.
-One check in the amount of $5,000 was payable to and authorized by the former Treasurer.
-Debit card transactions, totaling $1,833, applied to the personal utility accounts of the Squad's President and former Treasurer who were married at the time.
-One unauthorized payment of $399 was applied to a personal auto loan account in the President's name.
According to the report, the former Treasurer repaid $109,630 to the organization prior to the investigation.
The Delaware Office of Auditor Accounts states that the lack of adequate and clearly written policies and procedures, proper segregation of duties, and oversight of financial activities "led to insufficient maintenance of supporting documentation and review of expenditures." The close personal relationships within the Board also created conflicts of interest, as well as the omission of arms-length transaction, officials say.
Authorities note the organization's cooperation with the investigation and they advise that they develop written policies and procedures for all financial processes, including expenditure approval, check signer guidelines, timely bank reconciliations, and review of banking transactions. Delaware officials say, " the Squad should further ensure documents are maintained so that all deposits and expenditures have adequate supporting documentation, as well as conduct multiple levels of oversight over all processes."
To see the investigator's full press conference, click here.
47ABC 's Brooke Butler will have details regarding this investigation in the NewsHour.