By Bill O Boyle
The Times Leader
PLAINS TWP., Pa. — Auditor General Timothy DeFoor this week announced the release of audit reports for 36 volunteer firefighters’ relief associations (VFRAs), including 10 audit findings at the Plains Volunteer Ambulance Relief Association.
“Relief associations provide vital support to Pennsylvania’s dedicated first responders,” DeFoor said. “Our audits make sure state aid is used to equip and protect volunteer firefighters and the communities they serve.”
The Plains Volunteer Ambulance Relief Association, which was cited in the AG’s report, is a separate entity than the Plains Township Ambulance Association.
The findings:
—Noncompliance with prior audit recommendation — undocumented expenditures.
—Noncompliance with prior audit recommendation — failure to deposit proceeds from the sale of a jointly purchased vehicle.
—Noncompliance with prior audit recommendation — unauthorized expenditures.
—Noncompliance with prior audit recommendation — failure to secure ownership interest in purchased equipment.
—Noncompliance with prior audit recommendation — failure to maintain a complete and accurate equipment roster.
—Noncompliance with prior audit recommendation — failure to maintain surety (fidelity) bond coverage.
—Noncompliance with prior audit recommendation — failure to maintain minutes of meetings.
—Noncompliance with prior audit recommendation — inadequate financial record-keeping system.
—Noncompliance with prior audit recommendation — failure to maintain a complete and accurate membership roster.
—Failure to adhere to relief association bylaws.
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The Department of the Auditor General distributes state aid for VFRAs and audits how they use the funds, which are generated by a 2% tax on fire insurance policies sold in Pennsylvania by out-of-state companies.
In 2023, $67.44 million went to 2,519 municipalities for distribution to VFRAs to provide training, purchase equipment and insurance, and pay for death benefits for volunteer firefighters.
The Auditor General’s report said that VFRAs may have future state aid withheld if they do not comply with applicable state laws, contracts, bylaws and administrative procedures. Relief associations are separate legal entities from the fire departments they support.
The AG said the department is required by law to audit volunteer fire relief associations and municipal pension plans that receive state aid through the department; liquid fuels tax usage by municipalities; various county offices and numerous other state government entities.
Ambulance association response
Angela Patla, paramedic and director of operations for the Plains Township Ambulance Association, explained that they are a separate entity than the Plains Volunteer Ambulance Relief Association, which was cited in the AG’s report.
“That means we each have our own boards and organizations and funding and accounts,” Patla said, adding that a meeting was held Wednesday night to finalize a reorganization of the Relief Association.
“Though the Plains Volunteer Relief Association is associated with the Plains Volunteer Ambulance Association, the relief association and the affiliated ambulance association are separate, legal entities,” Patla said. “Its operations are managed separately from the ambulance association, with separate officers/board members, separate financial accounts and separate FEINs.”
Patla further explained that relief associations are legal, nonprofit organizations that are distinct and separate entities from affiliated fire or, in this case, ambulance companies.
“They were formed primarily to afford financial protection to volunteer fire and EMS personnel and to encourage individuals to participate in volunteer fire service,” Patla said. " The Department of the Auditor General distributes state aid for VFRAs, which is generated by a 2% tax on fire insurance policies sold in Pennsylvania by out-of-state companies. The aid is distributed directly to municipalities, not the relief associations, and it is the responsibility of each municipality to distribute the funds to the appropriate resources.”
Patla added that having not been associated with the relief association and their operations, she couldn’t speak to many of the non-compliance findings.
“I can confirm that ambulance equipment, such as a heart monitor, has been purchased with relief monies,” Patla said. “That may be related to the unauthorized expenditures, as the guidelines on what you can and can’t use the monies for seems to be strict.”
Patla also spoke about the AG’s finding of the failure to deposit proceeds from the sale of a jointly purchased vehicle.
“I can assure you that the monies from the sale of a rescue vehicle, many years ago, which was jointly purchased by the ambulance association and the relief association, were deposited into the ambulance account, which is considered co-mingling of funds and against guidelines,” Patla said. “Those funds had been in the ambulance account since the sale, with the understanding and anticipation that half of the funds needed to be transferred to the relief association. Clearly, the transfer was not made in a timely manner but has, since, been corrected.”
Patla also made it clear that there was never any theft of funds, nor was there any malicious intent to re-direct any proceeds that belonged to the relief association.
“Every cent of relief money has been transferred from the ambulance association account to the relief account,” she said. “I would, also, like it to be known that the relief association has not received any state aid for at least seven years, as Plains Township has not disbursed any of the aid to the relief association.”
Patla said that the majority of the officers/board members of the relief association have, recently, been replaced and they vow to take every corrective action necessary in order to move forward with full compliance with relief association guidelines.
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