Auditors concluded, for the period January 1, 2017 to December 31, 2019 that the relief association:
- Took appropriate corrective action to address one of three findings contained in a prior audit report. However, the relief association failed to take appropriate corrective action to address the two remaining findings contained in the prior audit report:
- Undocumented Expenditures – Although the relief association received reimbursement of $14, 032 from the affiliated fire company for the undocumented expenditures that were made in the prior audit period, the relief association again failed to provide adequate documentation to support all expenditures in the current audit period.
- Failure to Maintain a Complete and Accurate Roster – Auditors are concerned by the relief association’s failure to correct those previously reported findings. Auditors stated, “The association management should strive to implement the recommendations and corrective actions noted in the audit report.”
- In all significant respects, complied with applicable state laws, contracts, bylaws, and administrative procedures as they relate to the reciept of state aid and the expenditure of relif association funds, the exception of stated findings.
- Undocumented Expenditures – Although the relief association received reimbursement from the affiliated fire company for undocumented expenditures that were made in the prior period, the relief association was again unable to provide adequate supporting documentation for expenditures totaling $1,577.
- Failure to Maintain a Complete and Accurate Roster – The relief association failed to maintain a complete and accurate roster of equipment owned by the relief association. This finding is related to a similar finding in the prior audit.
- Unauthorized Expenditures – The releaif association expended funds for unauthorized expenditures totaling $17,513.
“Volunteer firefighters’ relief associations help our dedicated first responders to perform their dedicated, often heroic, duties. We are forever grateful,” DePasquale said.
State aid for VFRAs comes from a 2 percent tax on fire insurance policies sold in Pennsylvania by out-of-state companies. This year, 2,518 municipalities received nearly $60 million for distribution to VFRAs to provide training, purchase equipment and insurance, and pay for death benefits for volunteer firefighters.
The relief association is affiliated with the Malvern Fire Company in Malvern, Pennsylvania. The volunteer firefighters’ relief association and the associated fire service organization are separate, legal entities.
The Department of the Auditor General distributes the state aid and audits VFRAs. The full audit report for the Malvern Fire Company Firemen’s Relief Association and other VFRAs with findings are available online at www.PaAuditor.gov/audit-reports.
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