Volunteer Fire Department's Tax Returns Raising Eyebrows

LATEST AVAILABLE  SHOWS NO INCOME OR ASSETS

2008
According to documents provided by the IRS to online non profit tax-tracking resources (guidestar.com, etc.), The Fairhope Volunteer Fire Department Inc., a non-profit 501 (c) 3 corporation under contract with the city to provide fire protection,  apparently filed an incomplete 2008 Federal tax return--showing no income or assets.

An e-mail request by the Times for an explanation and for a copy of its 2009 return (to current Fire Chief Chris Ellis) went unanswered. All such non-profits are required to open their books to Public inspection.

City Administrator Mims said the Volunteer Fire Department is a private corporation (supported financially by the city)--and directed all questions to Chief Ellis or its Board of Directors. Council President Mixon said the matter is being looked into; and Mayor Kant said he is unaware of any tax issues at the VFD.

Police Chief Press (the Fire Dept. falls under his domain according to the city's organizational chart) had no comment. Press became Police Chief on July 1, 2009.

(After examining the forms, Financial Advisory Committee Chairman Zunk could offer no explanation for the missing data either.)

The 2008 VFD Directors/Officers are listed as: Kevin Hempfleng, James Bauer, John Saraceno, William Stanczak, and James Cluster (Treasurer); and was signed by then Chief Saraceno on Oct. 11, 2010.

2007

PRIOR YEAR'S RETURN APPARENTLY FILED LATE 

In contrast, the Fire Department's 2007 Federal tax return listed income of $214,632 ($102, 992 from citizens' donations) with net assets of $894,790.

Total operational expenses in 2007 were $120,609: including $3432 for travel; $2,361 for meetings; $22,927 for food; $293 for flowers; $8,933 for a "house committee"; $1,836 for plaques; $9,992 for training; $4,630 for wives dinners; and $41,529 for unspecified other expenses.

Both the 2007 and 2008 returns are dated Oct 11, 2010.

(According to the IRS, returns must be filed no later than 5 months after the organization's "accounting period.")


2007 Expenses











PREPARED BY LOCAL CPA

Both returns were prepared and signed by Joseph M. Cameron, CPA of Fairhope. Former Fire Chief John Saraceno signed for the VFD (Oct. 2010).

NEW NORTH FIRE STATION STILL PLANNED

Current Fire Chief Chris Ellis announced recently bids were being taken for the new Parker Rd. station, expected to be completed later this year.

Records show the city has budgeted $470,783 for fire department operations in 2011(including the cost of a new fire truck). $769,479 was provided by the city in 2010.

Comments

Anonymous said…
I smell a fire......
Tea party 2 said…
This is not acceptable. The city should require a more professional accounting of the millions of taxpayer dollars spent there, at the very least.
Anonymous said…
they obviously need an outside yearly audit
Anonymous said…
forwarded to IRS...maybe they can put out the fire. No one will get any answers with the cast of characters in office or appointed.
Then again, this is Fairhope and well covered by an umbrella of political protection...may be able to even prohibit the IRS from investigating. Who knows....but where there's smoke, we can only hope....
Anonymous said…
a former chief was replaced evidentally by a chief who is just as suspcious. I believe chief ellis is just the man we need to clear up all financial matters.food seems mighty high and wives' dinners are really high.if we the public have to cut expenses, then the fire dept should too
Sparkplug said…
The wives dinner is actually the annual Christmas Party. Tax payer money does not fund any of this. This is funded through various fund raisers throughout the year.
Anonymous said…
As the former chief of the Fairhope Fire department, I can tell you we can all lower our eyebrows. Everyone will see very soon maybe as soon as today that our 2008 taxes are going to be nothing more than an accountant error. Additionally I can assure everyone not one red cent of taxpayer’s money was used for food or parties. These expenditures come from money raised at various fund raisers throughout the year and are perfectly legal.
The food expenditures are used to feed the men after drill each Tuesday night. Our firefighters leave work and attend drill with no chance for them to eat there dinner prior to arrival, some coming directly from work. After drill they are fed supper, a lot of the time as late as 10:00 pm. These men do this training on there own time to make sure they are the best of the best when our citizens are in a time of need. As for the wives dinner, I want to make sure this is clear it is exactly what it is labeled a wives dinner (and I stand behind it 100%) we just have it around the holiday season because it is the end of the year. This dinner has been an annual event since the fire departments inception. At this event we are thanking our wives for the times we leave in the middle of the night, during our kid’s birthday parties, Christmas day our wedding anniversary etc. I remember one time I left my wife in a restaurant when Gulf Coast Molasses caught on fire; she had to eventually call for a ride because I never came back but most of all while we are gone they sit and worry, wondering if we are even going to come home. This dinner is well deserved. With the support of our citizens and the City Of Fairhope we will continue to provide the best Emergency protection second to none, regardless of the adversity we experience due to the fact that some people have nothing better to do than stir the pot.
Anonymous said…
Can anyone really believe that this is anything other than an accounting error. Be realistic!! Hmm maybe they sold everything at the end of 2007 and went to the boats.