The Slippery Rock Volunteer Fire Relief Association was forced to pay back more than $36,000 spent on building upgrades, after state regulators in an annual audit declared the money was improperly spent.

Pennsylvania Auditor General Eugene DePasquale reported the violations — termed “unauthorized use of funds” — in an audit report released Wednesday.

The report said two purchases totaling $36,508 were made in 2015 by the relief association for upgrades at the Slippery Rock Volunteer Fire Company and Rescue Team's ambulance building.

Those purchases violated state Act 118, which governs how relief association's operate, because ambulance services do not qualify to receive funds from a firefighters' relief association.

The department reimbursed the funds in two payments made on March 12 and June 5, according to the audit report.

Ryan Hanchosky, the department fire chief, said the misuses of funds were not intentional. He said the association spent the money in good faith believing the purchases were acceptable.

“We didn't think we were in the wrong,” Hanchosky said.

Doreen Taggart, a medical officer with the department, said the purchases aligned with the safety aspects that the association's funds are used for, but it was considered misused because of a technicality that funds must specifically be spent for the fire department.

“We purchased an antenna for our EMS building, so it would connect to the other building,” Taggart said.

The antenna was one of two purchases. The second was for fire extinguishers, a non-slip floor coating and other safety upgrades at the EMS building.

Hanchosky said the department has been working to make things right in paying the funds back. He said the department also wants to be transparent about the situation.

“We don't want the community thinking we're spending money that we're not allowed to,” Hanchosky said.

He said that while the department will continue to comply with the state's wishes, he feels the AG's Office was incorrect in treating their department as two separate entities during the audit. Hanchosky said the department's fire and EMS services operate every day as one department and one team, and they should be considered one entity.

“In their eyes, we are two different entities, which is not true. We are one entity,” Hanchosky said.

The fund balance for Slippery Rock Relief Association was listed at $316,668 as of Dec. 31, 2017. Over the last two years, the relief association spent $188,957.