Auditor of Accounts identifies nearly $120,000 in bogus transactions. Others can't be verified.

A report released March 28 by state Auditor of Accounts R. Thomas Wagner identified nearly $120,000 in financial irregularities at the Mid-Sussex Rescue Squad during the period 2010-2017.

The former treasurer, unidentified in the report, carried out 30 cash transactions totaling $112,645. Of those, $109,630 was recovered by the rescue squad before the state auditor was called in.

In a press release, Wagner said, "Due to allegations of financial misappropriation of the former Treasurer at Mid-Sussex Rescue Squad, the Office of Auditor of Accounts opened an investigation for January 1, 2010 through June 30, 2017. Through the investigation, AOA found financial misappropriations for the benefit of the former Treasurer and the current President including cash withdrawals, and payments for utilities and an auto loan."

The rescue squad's lawyer, Bruce A. Rogers, disputed some of the findings in a response included in the audit report. For example, the auto loan payment was made by the board of directors on behalf of the president as an emergency measure, and was repaid by forfeiting the $20-per-call reimbursement provided to all members. The squad's website identifies the president as Raymond Johnson. IRS Form 990 filings by the squad identify the former treasurer as Heather McCabe.

"The malfeasance of the former treasurer was part of a larger, complicated scheme intended to defraud the Squad," Rogers wrote.

The report, below, blames lack of policies, failure to follow existing policies, poorly written policies and "close family and personal relationships" that appear to have stymied effective oversight by the squad's board of directors.

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