MAHOPAC, N.Y. — A federal investigation into a volunteer fire department found that officials may have not spent $1.4 million on new equipment.
LoHud.com reported that the Mahopac Volunteer Fire Department’s 2014 financial statement indicates it spent $614,000 on new equipment and apparatus. Vice President Chairman Edward Scott recalled the biggest purchase that year was a $175,000 ambulance. In 2013, the department spent $273,000 on equipment. Scott also said money was spent on a new suburban for the chief at a cost of about $50,000.
The town cut the department’s fire protection contract by 32 percent after the probe found up to $5 million missing from department funds. Officials say they think the missing money is tied to an alleged scam.
The department is a private non-profit organization that contracts with the town to provide fire and ambulance service. It serves about 5,500 of the town’s 13,000 residents.
In previous years, board members had questioned fire officials about their spending but didn’t receive much of a response. Another audit of the Mahopac Falls Fire Department revealed it had $3.8 million in reserves at the end of 2014, which is more than six times its annual spending. The MVFD had $390,000 in cash and $3.8 million in debt at the end of 2014.
A town supervisor said he was comfortable with the district’s reserves.
“They have money set aside for capital projects and purchases, and we are confident they have managed their funds properly,” Ken Schmitt said. “I don’t have an issue having that much money on hand.”
Councilman John Lupinacci said it would be wrong for the town to cut funding to Mahopac Falls.
“We can’t penalize Mahopac Falls for being good at fundraising, and being a shrewd business investor,” Lupinacci said. “You should praise them. They’ve stayed within the tax cap, and haven’t asked for a major increase. You don’t want to dis-incentivize them.”