Legislative Auditor: 2024 VFD audits show low error rate, some accounting problems at volunteer departments

Nathan Hamilton, VFD auditor in the Legislative Auditor’s Post Audit Division, reported to a legislative subcommittee that audits of volunteer fire departments’ state funds found a low overall rate of noncompliance but persistent recordkeeping problems.

Hamilton told the committee that 426 qualifying volunteer fire departments received about $33,600,000 in state distributions in 2024 from the Fire Protection Fund, which is funded by a surcharge and premium tax on fire and casualty insurance. The Legislative Auditor audited 97 departments, covering more than $10,900,000 in state funds, and found compliance issues in 54 of those audits, totaling about $200,000 and representing roughly 1.8% of the audited dollars.

Hamilton said the audits focus only on the departments’ state account — a bank account departments are required to create and use exclusively for state distributions — and that departments must keep itemized receipts, invoices and other documentation for five years to support use of state funds for allowable purposes. "Departments must also retain itemized receipts, invoices, and documentation for 5 years to support the use of state funds for allowable…