By Adam Pagnucco.
The county’s Office of Inspector General (OIG) dropped a bombshell 4-page memorandum this morning: the Montgomery County Volunteer Fire and Rescue Association (MCVFRA), which represents volunteer fire departments, is legally ineligible to receive ambulance fee money from the county despite the fact that it has been getting that money for more than a decade.
First, some background. Montgomery County has an integrated fire service including both the county government’s Fire and Rescue Service and 19 local fire and rescue departments (LFRDs) that are staffed by volunteers. Those volunteer departments are represented by MCVFRA, which as a 501(c)(4) nonprofit can engage in lobbying and can (and does) endorse candidates for office. This combined structure has existed for decades.
In 2012, the county council passed a fee on ambulance service, which is now called the Emergency Medical Services Transport Insurance Reimbursement Program, or EMST fee. The fee is paid by insurance companies and is used to fund fire and rescue services both inside the county government and inside the volunteer services. The county has distributed some of the fee money to both the 19 LFRDs and MCVFRA, the association that represents them, for more than a decade.
Earlier this month, I reported that MCVFRA had been experiencing financial problems that resulted in the elimination of its executive director position. One of the problems was that the association had been spending ambulance fee money on general expenses rather than the specific expenses allowable under its agreement with the county. According to the association, this resulted in the county withholding future payments of fees “until we clean up.”
That’s bad enough, but there is more. First, the OIG released a report yesterday showing that the county was not adequately tracking the disbursement of ambulance fee money, leaving the system vulnerable to fraud. And now, the OIG has released a new memorandum claiming that MCVFRA is ineligible to receive ambulance fee money because it is not in itself a local fire department but is instead an association that represents them. The OIG even “recommended the County seek recovery of funds as appropriate.”
If the OIG is right, the implications are potentially devastating for fire and rescue services in the county. The volunteer association is in financial trouble right now. It cannot afford to pay back any ambulance fees it received from the county in the past. Even if the remedy is to merely stop paying fees in the future, the association’s solvency may still be jeopardized. And if the association collapses, what happens to the volunteer fire departments? These are questions that no one wants to deal with.
This is an emergency situation that requires immediate attention from county leadership. The volunteer association must not be allowed to collapse and volunteer fire and rescue services must be preserved. That definitely means strengthening oversight of ambulance fee money. It may also mean one-time county funding to stabilize the volunteer association and perhaps a revisiting of the law on ambulance fees to ensure appropriate distribution of the money. Whatever the solutions, there must be a game plan written right now.
The OIG’s press release follows along with a link to the office’s memorandum.
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For Immediate Release
December 23, 2025
Montgomery County OIG Investigation Finds MCVFRA Ineligible for EMST Funds
Rockville, Maryland – Montgomery County Maryland Inspector General Megan Davey Limarzi announced today the release of a new Office of the Inspector General (OIG) Memorandum of Investigations, Improper allocation of EMST funds to MCVFRA, detailing the OIG’s inquiry into whether the Montgomery County Volunteer Fire and Rescue Association (MCVFRA), an organization that represents the County’s 19 local fire and rescue departments (LFRD), was legally eligible to receive Emergency Medical Services Transport Insurance Reimbursement Program (EMST) funds.
In May 2012, the County Council enacted Bill 17-12E (effective January 1, 2013) to authorize the County to impose and collect emergency medical service transport fees under the EMST program. The program allows MCFRS to bill insurance providers for emergency medical transportation services, such as transports by ambulance. The County imposes a reimbursement charge for these services and uses it to support fire and rescue operations.
According to Montgomery County Code Section 21-23A, 15% of the net revenue from this program must be allocated for the benefit of local fire and rescue departments (LFRD), following procedures outlined in annual operating budget resolutions. The County Code also imposes restrictions on the use of the funds. Chapter 21 defines a Local Fire and Rescue Department (LFRD) as “any individual fire or rescue squad corporation authorized under Section 21-5 to provide fire and rescue services.” Under Section 21-5, an approved LFRD “may provide direct fire suppression, rescue, or emergency medical services” to the County. MCVFRA is a 501(c)(4) organization that is the recognized representative of the County’s 19 local volunteer fire departments.
The MCVFRA has been awarded EMST funds since 2014, most recently receiving $688,711 in FY2021 to FY2025. The OIG’s investigation concluded that the MCVFRA, as a representative of LFRD’s and not in and of themselves an LFRD, should not have been eligible to receive EMST funds. This determination coincides with findings in a recent OIG audit, Performance Audit of the Fiscal Management Division, Montgomery County Fire & Rescue Service, OIG Publication # 26-07, that the County needed strengthen oversight of EMST funds distributed to LFRDs.
As a result of the OIG’s finding, and as provided for in the EMST agreements, the OIG recommended the County conduct a financial audit of the use of EMST funds, starting with those awarded to the MCVFRA, as soon as possible. The OIG also recommended the County seek recovery of funds as appropriate.