Audit: Pa. Volunteer Fire Department Missing More Money

Aug. 19--Days after the former fire chief and secretary of the defunct Eastern Derry Volunteer Fire Company were charged with stealing $67,000 in department funds, the state auditor general released a three-year audit showing more than twice that amount is unaccounted for.

Eugene A. DePasquale's audit report shows $152,281 in undocumented spending by the fire department between 2011 and 2014. DePasquale last week forwarded the audit to state police investigators in Greensburg and the state Attorney General's office.

"What happened at the Eastern Derry Volunteer Fire Relief Association is outrageous. This is one of the worst situations we have found while conducting audits of a volunteer fire relief association," DePasquale said.

State police arrested former Chief Derrick L. Bollinger, 36, and his wife, Regina, 24, of Derry on Aug. 12 on charges of theft, dealing in proceeds of unlawful actions, theft by failure to make required disposition of funds, theft by deception and conspiracy. They are accused of stealing more than $67,000 from the department over a two-year period, forcing it to close in July 2014.

After the department folded, the Bollingers allegedly sold some of its equipment, including smoke protection masks, to pawn shops, police said. Trooper Robert Harr alleges the couple took the money from a fire department construction fund and used it for a $30,300 down payment on a pickup truck.

Trooper Steve Limani said the investigation is ongoing.

"We definitely believed there was more money involved, but we filed the charges based on information we can prove at this point. We also believe there were more people involved, and that is why we have asked anyone with information to come forward," he said.

The amount of unaccounted funds found by auditors stunned Derry Township Supervisor David Slifka.

"I knew the numbers would eventually come out, but I didn't anticipate it being this high," Slifka said.

When questions arose about the department's finances, the supervisors asked state police to investigate and authorized shutting down the department.

"I was the one who actually went to (the Westmoreland County Department of Public Safety) in July 2014, with other supervisors' approval, and instructed them to remove the department from the roster as an active fire department," Slifka said. "We tried for months to get a straight answer out of them, and we couldn't."

The supervisors learned of financial problems in November 2013 when state officials pressed them for an accounting of the grants disbursed to the fire company.

"Every time you approached them seeking an accounting, the names of the officers on the relief company would change. ... You could never get a straight answer out of anyone," Slifka said. "It's really a tragedy."

In the 21-page audit, DePasquale said auditors found "a catastrophic failure of checks and balances designed to ensure that public assets were properly protected. The record-keeping was atrocious. Bank records were in disarray."

The audit showed that from Jan. 14, 2011, through 2014, the relief association was unable to provide supporting documentation for $124,796 spent in 102 transactions, making it impossible to determine if the money was properly spent.

During the period, the department had no record of another $27,485 in state aid that was deposited into a relief association account.

DePasquale said auditors determined that $19,149 was improperly deposited into a fire department account; $8,336 remains unaccounted for.

The auditors said numerous receipts and disbursements were not recorded, checks were written out of sequence, and invoices, bank statements and canceled checks were not maintained.

The department failed to maintain an equipment roster, minutes of its meetings, an accurate firefighter roster or surety bond coverage, auditors said.

"Clearly, the leadership of this volunteer fire department relief association spiraled out of control in recent years. There needs to be an accounting of public funds ... and the people who allowed this to happen should be held accountable," DePasquale said.

The couple surrendered at Derry Township District Judge Mark Bilik's office Aug. 12 and were accompanied by their attorney, Michael Ferguson of Latrobe. They were released on their own recognizance, pending a preliminary hearing Sept. 2.

Ferguson said the Bollingers aren't the only ones responsible for the department's accounting.

Limani said he believes someone knows where the fire company's remaining equipment is located. The equipment police have recovered from pawn shops is marked "Station 92," "Eastern Derry" or "EDTFD."

Slifka is uncertain whether there is any money or equipment left to recover.

"At this point, we've turned the investigation over to state police," Slifka said.

Anyone with information is asked to contact state police at 724-832-3288.

Paul Peirce is a staff writer for Trib Total Media. He can be reached at 724-850-2860 or ppeirce@tribweb.com.

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