MARYDEL, Del. - A state investigation into the Marydel Volunteer Fire Company found misuse of funds, weak oversight, and gaps in financial controls, according to a new report from the Delaware Office of Auditor of Accounts.
The investigation, released on Monday, reviewed financial activity from fiscal years 2021 through 2023 and substantiated four of ten allegations, either fully or partially. The report centers largely on actions by the company’s former president and treasurer.
According to the auditor’s office, investigators found evidence of abuse involving state and county resources, indicating taxpayer funds were not always used for their intended purpose.
The report details multiple breakdowns in financial management, including failure to consistently follow the company’s own bylaws for budgeting and spending. Auditors say the fire company lacked adequate internal controls, did not always require proper approvals for expenditures, and had limited oversight of financial decisions.
Investigators also flagged questionable spending, including purchases tied to fundraising events, gift cards, and conference-related expenses. In some cases, auditors noted a lack of clear documentation explaining how those expenses benefited the organization.
The report further found the company conducted cash poker tournaments without proper authorization, raising additional concerns about compliance and oversight. The audit could not substantiate allegations that the former MDVFC President was withholding the cash proceeds generated during those poker games, however.
Auditors also cited poor record-keeping practices, saying the company failed to maintain complete and accurate financial records, making it difficult to fully account for how funds were handled.
Delaware State Auditor of Accounts Lydia York said the findings highlight the risks of weak financial safeguards.
“The investigation found that inadequate internal controls allowed a few key personnel to make impactful financial decisions without oversight.,” York wrote in the audit’s findings. “The absence of controls exposed the fire company to significant risk, including fiscal instability, diminished member morale, and compromised community services.”
The report notes similar concerns were raised in a 2014 audit, suggesting some issues may have persisted over time.
The auditor’s office is recommending stronger internal controls, improved oversight, and more consistent record-keeping. It also calls for potential changes at the state level to strengthen accountability and reporting requirements for volunteer fire companies that receive public funding.
“Without effective oversight or meaningful consequences for financial mismanagement, this pattern of misconduct and abuse is likely to continue in future years unless the Company’s governing body or community intervenes,” York’s office wrote in a press release.
The full report can be found here.
