At the September 2 Upper Frederick Board of Supervisors meeting, Chairman Bill Landman said the fire company audit would not proceed. On the fire company attorney's advice, the board drafted an ordinance to govern the firehouse.

           The township found that adequate reports and supporting records had not been provided for approximately 10 years. The board identified at least 16 unreconciled discrepancies involving approximately $85,000, including missing histories, account transfers, mismatched dates and amounts, and untraceable township checks.

            Vice-Chairman Lisa Fischer read a statement from the board. "Tonight we're making a brief statement regarding the Upper Frederick Fire Company and the unresolved accounting of taxpayer money provided by the township. This is not a criticism of the volunteers who answer emergency calls, attend training and protect our community. We respect and appreciate their service; however, the board of supervisors has a legal and ethical responsibility to account for public money."

            Fischer stated that Pennsylvania's Second Class Township Code requires a fire company to report annually how township funds were used before receiving more.

            Fischer stressed that the township did not conclude the money was stolen and repeatedly said poor accounting could explain the discrepancies. It hired an independent forensic accounting firm so the fire company could explain the transactions and show whether funds were properly spent. The parties could not agree on audit terms. The fire company's attorney instead suggested an ordinance establishing future safeguards and reporting requirements.

            Fischer said that while stronger safeguards are necessary, a future ordinance cannot explain past spending or resolve existing discrepancies and that the board has exhausted nearly all known options. Without independent review, questioned transactions remain unresolved.

            "We must protect public money, follow Pennsylvania law and safeguard taxpayers," Fischer stated.

            "We can support our volunteer firefighters while still requiring the organization receiving public money to provide complete records and cooperate with an independent review. The board will do that going forward by considering the ordinance that is the second item on the agenda. We remain willing to work with the fire company, and we remain committed to reliable emergency services, transparency and accountability."

            The board's full statement is on the township Facebook page.

            The fire company also issued a press release on their Facebook page.

            Township Solicitor Vicki Kushto, Esq. said the ordinance sets future financial-reporting rules, required reports and authorized expenditures. A special meeting to adopt it is scheduled for 5 p.m., Monday, September 14.

            During public comment, Fire Police Officer Dave Hanson questioned the special meeting's timing, noting many residents would be working, and asked whether the ordinance let the township "take over the fire company" or control its spending.

            "No. It strictly covers money appropriated through taxes," Kushto replied.

            Resident Les Benzak also objected to the meeting time and said residents lacked time to review the ordinance. Kushto said it would be available before the next township meeting for questions and comments.

            Tax Collector Deneen Rhoads-Kratz said residents were donating personally and asked, "Does the fire company not have any money?"

            Fire Chief Doug Kenna said it had received only one fuel check for Community Day 2025, to his knowledge. Hanson said fund-drive checks continue, but insurance, fuel, and legal costs remain, withheld township tax funds were already spent, and some maintenance is being deferred.

            Resident Buck Reed asked why the audit stopped.

            "We couldn't agree on audit terms," Kushto replied.

            Reed noted the fire company had previously requested the audit.

            "Same answer," Kushto said.

            Reed said it "looks really bad" that the company requested an audit but was not providing proper paperwork. He questioned why preserving the schoolhouse seemed more important than alleged corruption and legal violations.

            Kenna cited disputed audit terms, including possibly providing records older than 10 years, which Kushto denied. He worried the company would pay if errors were found.

            Supervisor Bill Karaffa said payment would be required only if illegalities were found.

            Kenna said the company had spent about $20,000 on its attorney. "We just wanted to give you accounts you are allowed to look at," Kenna replied.

            "We knew tax money went into those other accounts," Landman replied.

            Kenna offered to meet with supervisors and other fire company officers to "iron this stuff out."

            "Mr. Kenna, it's $85,000 in taxpayer money," Landman said.

            "We already showed where that money went," Kenna said.

            Landman said disputes over various amounts led Kushto to suggest an audit, which the fire company accepted.

            Kushto said the board rejected two fire company conditions: reviewing only the tax account and only transactions over $1,000. Because funds moved among accounts, those limits would prevent tracing them.

            "We just want accountability," said Karaffa, stating that if the board can trace tax money into the other funds, it's resolved. "But you guys don't want to do that. What don't you want us to see?" Karaffa asked.

            Kenna complained the township had abruptly stopped funding fuel and insurance. Kenna and the board then discussed resolving the issue without attorneys.

            "You have our full cooperation," Landman said, asking Kenna to contact the company's attorney. "Maybe we can work something out. Until then, we're moving forward with the ordinance." He added that residents were upset by the lack of accountability.

            The board authorized Township Manager Aaron Walizer to advertise an ordinance adding Chapter 15 regulations for fire companies.