The Volunteer Fireman’s Relief Association of the Bear Lake Fire Department faces a potential withholding of state aid after not complying with a state auditor’s prior recommendations.

A prior audit by the state Auditor General’s office found the association’s checking account inappropriately registered under the Bear Lake Volunteer Fire Department’s name and federal tax identification number rather than having a separate name and tax ID number for the association as well as having out of date bylaws.

“Because of the significance of the matter described in Finding (Number) 1 below and discussed later in this report, the relief association did not, in all significant respects, comply with applicable state laws, contracts, bylaws and administrative procedures as they relate to the receipt of state aid and the expenditure of relief association funds, collectively as a whole,” the audit states. “Therefore the relief association may be subject to the potential withholding of its upcoming state aid distribution …”

In 2025, Warren County fire departments received $168,709.26 in FRA funding and $801,786 in pension payments. Half of the pension payments ($495,317.16) were released to the city of Warren. The top three FRA disbursements to county fire departments were Conewango Township ($20,482.85), Pine Grove ($15,688.90) and Pleasant Township ($13,253.54). Bear Lake Borough received $637.08 in FRA money while Freehold Township, which also includes the Volunteer Fireman’s Relief Association of Bear Lake Fire Department, received $6,630.89 in FRA funding. Volunteer Fire Relief Associations may have future state aid withheld if they do not follow applicable state laws, contracts, bylaws, and administrative procedures – though no money was withheld from Warren County fire departments in 2025. Relief associations are separate legal entities from the fire departments they support.

Having a checking account that was improperly registered with a bank under the fire service’s name and federal tax identification number rather than the relief association’s name and federal tax identification number means the firefighters’ relief association assets may not have been properly safeguarded from unauthorized use or disposition. Relief association officers said the wrong federal tax identification number was given to the bank when the account was opened, which is why the name is associated with the incorrect federal tax ID number. Relief association management agreed to the finding as presented by auditors and said they will take action – though the Auditor General’s office will monitor that compliance. Auditors said withholding state aid may not be considered if the paperwork issues are fixed within 60 days to verify compliance with the auditor’s recommendations.

“Due to the potential withholding of state aid, the relief association’s compliance with the finding recommendation will be monitored subsequent to the release of the audit report and through our next audit of the relief association,” the audit states.

In regard to the second finding, the existing bylaws contain outdated language related to conducting business based on legislation passed in 1968 rather than the more recent Volunteer Firefighters Relief Association act. Volunteer Fireman’s Relief Association of the Bear Lake Fire Department said they had no reason why the bylaws hadn’t been updated, but agreed with the auditor’s finding and said they will comply.

“Compliance will be subject to verification during the next audit,” the audit states.

The Department of the Auditor General distributes state aid for VFRAs and audits how they use the funds, which come from a 2% tax on fire insurance policies sold in Pennsylvania by out-of-state companies. In 2025, $73 million went to 2,507 municipalities for distribution to VFRAs to provide training, purchase equipment and insurance, and pay for death benefits for volunteer firefighters. Funds are allocated through the department and local municipalities to nearly 2,000 volunteer firefighter relief associations to enable the purchase of training, equipment and insurance, and pay for death benefits for volunteer firefighters.