DE State Auditor Finds ‘Financial Mismanagement’ by Marydel Volunteer Fire Company
Image Courtesy of Marydel Volunteer Fire Company
MARYDEL, Del. – The Delaware Auditor of Accounts (AOA) issued an investigatory report on Tuesday, finding evidence substantiating allegations of financial misconduct by the former president and treasurer of Marydel Volunteer Fire Company (MDVFC) in Kent County.
Auditors report that MDVFC failed to comply with budgeting bylaws, spent large sums on fundraising events, gift cards, and conferences, operated unauthorized cash poker tournaments, and did not keep adequate financial records, within the scope for fiscal years 2021, 2022, and 2023. The report followed a 2014 AOA report on MDVFC, which raised similar concerns.
The investigation is the second engagement completed in an ongoing partnership between AOA and the Delaware State Fire Prevention Commission (“the Commission”). The partnership seeks to create transparency in Delaware’s volunteer fire companies and respond to allegations of misconduct. In the report, auditors fully or partially substantiated four out of a total of 10 allegations, making subsequent recommendations to MDVFC, the Commission, and Controller General to help prevent future abuse of State resources.
“The abuse of State and County resources at MDVFC directly took money away from its intended purpose of saving lives,” said Delaware State Auditor Lydia E. York. “This funding is awarded every year to give our first responders the tools they need to carry out their mission. This office expects good fiscal stewardship of State funds, and when allegations of misconduct are brought to our attention, we will respond.”
MDVFC receives funding from the State of Maryland, Caroline County of Maryland, the State of Delaware and Kent County of Delaware. AOA limited its scope to funds distributed by Delaware. Delaware’s State and County distributions have no established requirements for the funding provided.
Previous MDVFC review reports noted that the fire company failed to file IRS Form 1099s, lacks formal policies and procedures, and may not have recorded all transactions in the bookkeeping software provided to the audit firm. Despite its lack of compliance or control, the Company will continue to receive funds from the State and County of Delaware.
“The behavior of individuals at MDVFC documented by AOA auditors is fully preventable with strong regulations and internal controls,” York continued. “MDVFC also receives significant funding from the State of Maryland, all of which must be segregated and reported on annually, requirements that the State of Delaware lacks. The recommendations made in this report would go a long way towards preventing further abuse of State resources.”
To read the auditors’ report in full, click here.
