The Citizens’ Voice
WILKES-BARRE TWP., Pa. — The state Auditor General’s office on Monday announced it is lifting a five-year freeze on state aid to the township volunteer fire department’s relief association.
Auditor General Eugene DePasquale said he restored $252,978 to the Wilkes-Barre Township Volunteer Firefighters’ Relief Association after new leadership paid an outstanding, undocumented loan.
“There have long been confidence and trust issues raised in audits of the Wilkes-Barre (Township) VFRA as far back as 2006,” he said. “There is a history of unaccounted funds, unaccountable leadership and horrific management of public assets.
The auditor general had withheld state aid since 2010 because former relief association leaders for the past decade failed to follow several audit recommendations. DePasquale said his office worked directly with new VFRA leadership “to clean up long-standing issues” to get state aid intended to help provide equipment and training for volunteer first-responders flowing again.
In October 2015, the township reimbursed the VFRA $67,121, which paid off a $55,121 undocumented loan to the affiliated fire department and $12,000 worth of erroneous withdrawals in 2008 and 2009. All $252,978 was distributed to township supervisors in November, and the supervisors disbursed the money to the VFRA in December.
DePasquale attributed some of the previous chaotic management to a former VFRA officer who pleaded guilty to embezzling funds from the department from 2008 to 2011.
John Yuknavich, who was chief of the department as well as president and treasurer of the relief association, served six months in federal prison last year and was ordered to pay restitution of $45,000.
In June 2010, the Department of State also fined the fire department $2,000 after Yuknavich admitted the fire company failed to keep true and accurate records and failed to produce information required to be disclosed by the state’s charitable solicitation law.
“Be assured that our auditors will keep a close eye on this VFRA,” DePasquale said. “It may take years to rebuild trust and public confidence. Helping to resolve these long-standing audit issues is a very good step forward.”
State Rep. Eddie Day Pashinski, D-Wilkes-Barre, said the announcement is great news for the township and its volunteer fire department.
“The results of the audit and reconciling a past due loan will help restore the once-held good reputation of the department before it was tarnished by poor management practices,” said Pashinski. “The association can now refocus on its primary goal of providing emergency services and assistance to the people of their community.”
Volunteer firefighters’ relief associations receive state aid from a 2 percent state tax on fire insurance premiums purchased by Pennsylvania residents from out-of-state casualty insurance companies.
Auditors will complete an on-site verification within 12 months to evaluate internal controls and compliance with audit findings for the Wilkes-Barre Township VFRA. Auditors already verified steps to ensure future compliance, such as opening a new bank account, conducting meetings with officers and members and documenting meeting minutes.
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