Firemen questioning LBFD Fund Drive’s financial reporting
Council informed about complaint
to be filed with state
The manner in which the Long Branch Fire Department Fund Drive Association conducts its business is being called into question by the people it is meant to support.
At last week’s City Council meeting, Lt. Stephen M. Fitzpatrick of Phil Daly Hose Company No. 2 told the governing body that a complaint would be filed with the state regarding the operation of the nonprofit organization.
According to documents filed with the state Department of Law and Public Safety Division of Consumer Affairs, the Fund Drive Association was established in 1991 "to raise money for the nine fire companies that comprise the Long Branch Fire Department."
Before filing a complaint about the organization with the state, Fitzpatrick said he wanted to apprise the city of several issues that have come to light regarding the association.
He said members of the fire companies had grievances with the organization for training denied due to a lack of funds, inconsistent financial reporting, failure to elect trustees and neglecting to conduct financial audits.
The bylaws of the association call for the annual election of three trustees. That election is supposed to take place the first Tuesday after the first Monday in December. The original trustees for the association elected in 1991 were Thomas A. Siciliano, Joseph Valentino and Christo-pher Loidice.
There are no records of an election being held after 1991. At some point Loidice was replaced. The third trustee for the association is now William Budd.
Fitzpatrick said that "they (the trustees) are not following their own rules, according to the bylaws they signed, such as holding an election to vote in the three trustees."
Long Branch Fire Company Chief Albert Mentel, who was in attendance at the board meeting, said, "No one is interested in the [trustee’s] position; nobody wanted to run."
Contacted on Friday by phone, Siciliano said, "A ballot was cast this month for the incoming chief, but an election for the trustees was not held this year."
He added that he did not attend this month’s meeting in which the ballots would have been cast.
Fitzpatrick said that the fiscal year runs from January to December but that Robert Faye, the director of the association, distributed Fund Drive reports for the year 2001 on Dec. 20. The report showed the total money collected from events was $116,850 with $57,141.41 in expenses, leaving a profit of $59,708.59 for last year. The report is silent on the amount of money raised through direct mail solicitations each year.
Because that figure is more than $100,000, Fitzpatrick said the organization should have had an independent audit of its financial statements as required by law.
Siciliano said, "The fund drive collects nowhere near $100,000." He added that last year’s figures on the mail campaign are not yet in.
Fitzpatrick provided the Atlanticville with a copy of the report he said he was given by Faye.
That report shows the figures stated above and is consistent in style and content with previous reports the association has provided to the fire companies it was created to support.
The association’s fund drive report given out each year to the fire companies does not follow the format nonprofit organizations are required to follow when submitting it to the state and federal governments.
The required state report is based on Internal Revenue Service Form 990, which all nonprofit organizations in the country are required to submit.
According to Fitzpatrick, "Fund reports submitted to the state are inconsistent with reports on file with individual fire companies."
The last year for which a report to the fire companies and an IRS filing are available is 2000.
According to the report given to the fire companies, total revenue was $113,897.53; total expenses were $60,461.05.
Income for the year under that report is $53,436.48.
Revenue reported on IRS Form 990 filed by the association for 2000 was $85,172.
Expenses for that year were $75,539, leaving income of $9,633.
At the end of 2000, net assets and fund balances for the association are reported as $144,747. The fund drive report given to the fire companies does not include a line item for total accumulated assets.
For 1999 the fund drive report given to each department shows income of $49,752.87 after $74,942.20 in fund-raising expenses were deducted from a listed revenue of $124,695.07.
The IRS filing shows a gross revenue of $108,019.25 for 1999 and expenses of $89,447.18, showing an increase in assets of $18,572.07 for the year.
Repeated calls placed to the number listed on the association’s nonprofit application were not returned before deadline.