An investigation by the State Auditor into the Mid-Sussex Rescue Squad found a misappropriation of funds and a lack of financial controls.
The audit also showed that the organization that lacks policies and procedures, segregation of duties, and financial oversight, all of which are compounded by the squad’s small size.
The investigation determined the board relies on close family and personal relationships to manage the organization
The investigation revealed the following:
- 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.
AOA also identified transactions that did not have proper supporting documentation, could not determine if the transactions were for the benefit of the Squad. Examples of these transactions include:
- The former treasurer signed 3 checks totaling $5,000 made payable to Cash.
- The current President and the former Treasurer signed 1 check payable to Cash in the amount of $5,000.
Additionally, AOA could not substantiate or refute the allegation pertaining to the employee health insurance benefits due to conflicting guidelines found regarding the squad’s policy.
Prior to the investigation, the former treasurer repaid $109,630 to the squad.
Formed in 1972, the squad is a non-profit, non-stock corporation located in Millsboro. The Millsboro area has been growing rapidly
As of August 2017, the squad operated with 5 directors, 2 EMS line officers, 26 members, numerous full-time and part-time career staff, and a number of volunteers.
The squad completed 1,690 emergency runs spanning throughout various areas of Sussex County from January 1 through July 31, 2017.
