State audit flags financial control weaknesses at Memorial Volunteer Fire Company

By Claudis Estrada, Contributing Journalist

SLAUHGTHER BEACH, DE. The D elaware Office of Auditor of Accounts (AOA) has released a performance audit of the Memorial Volunteer Fire Company (MVFC), citing multiple deficiencies in financial management between 2021 and 2023.

The audit was requested by the State Fire Commission after members raised concerns over the company’s fiscal practices.

The review covered operations during which MVFC received more than $2.6 million in State funds. According to the report, auditors found widespread issues, including non-compliance with policies, poor documentation of expenses, and weak oversight of financial operations. Testing revealed that 70% of expenses lacked proper board approval and 42% were missing adequate documentation, representing nearly all of the $3.3 million in transactions examined. Payroll was also flagged for errors, with missing timesheets, overpayments, and unreconciled records.

“This performance audit underscores the importance of strong internal controls and rigorous oversight when dealing with State funds, including grant funds,” said State Auditor Lydia E. York. “Delaware’s volunteer firefighters rely on their companies effectively managing State funds to ensure they have the tools they need to save lives. I want to thank the State Fire Commission for their partnership, and Memorial Volunteer Fire Company for their cooperation and commitment to strengthening their fiscal practices.”

The report also noted MVFC’s failure to comply with Sussex County’s grant agreement, as the company did not implement written financial policies until mid-2023.

Despite the findings, the current MVFC Board has taken steps to correct past weaknesses. Since 2024, the company has hired outside accountants, switched to cloud-based accounting software, and strengthened payroll and credit card oversight. The audit acknowledged these improvements but stated that a future review will be needed to confirm whether the new controls are working effectively.

“I want to thank the State Auditor and her staff for their diligence in assisting the Commission in reviewing the financial status of our volunteer fire companies,” said Fire Commission Chair Ron Marvel. “These companies receive significant amounts of taxpayer funding, often with limited oversight. It’s essential that we work collaboratively with fire service members and legislators to strengthen accountability for how these public funds are spent. At the same time, we must ensure that fire companies have the flexibility to use the resources appropriately so they can continue providing the highest level of protection to their communities.”