The Shenandoah County Board of Supervisors and the New Market Town Council voted Wednesday to freeze funding to the New Market Volunteer Fire Company after an audit revealed more than $30,000 of probable fraudulent transactions by the fire company.

The decision was made after an investigation of more than two years worth of financial records.

During the past several months, the board of supervisors received accusations against the fire company from several people, who say they were concerned the company was misusing money.

Vince Poling, the Shenandoah County Administrator, says, "The board has a duty to ensure the public funds expended are put to proper use. The audit therefore was a fact finding process to determine if the comments had any merit."

A preliminary investigation of the company's financial records alleges more than $30,000 were used improperly between January 1, 2006, and July 31, 2008.

In addition to recent suspensions, including the fire chief, the volunteer fire company plans to release a statement Friday about the accusations.

New Market Public Safety chairman Gary Comer says, because of the seriousness of the allegations, the town council has requested a special prosecutor be appointed to handle the matter and to work with the Virginia State Police and the Department of Charitable Gaming. He says his committee will keep its eyes open as well.

"My committee is monitoring this situation very carefully. These are serious allegations," says Comer.

It's still being decided whether or not the company will respond to emergencies while waiting on a solution to this situation, but Shenandoah County is preparing a secondary plan just in case.

A copy of the board's resolution has been turned over to the Shenandoah County Commonwealth's Attorney, who will decide where the investigation goes from here.

Money from both the town and county will be frozen until the volunteer fire company is able to prove that funds will be handled properly in the future.