An audit of the Lower Towamensing Township Non-Uniformed Cash Balance and Pension Plan conducted recently by the Pennsylvania Auditor General’s Office has resulted in deficiencies that will require the township to return funds to the state and deposit funding in the defined benefit pension plan of the township.

Auditor General Timothy L. DeFoor said the audits “make sure state pension aid is used as required by law, which helps to reduce financial burdens on local taxpayers.” He added: “Nearly a quarter of all the pension plans we support are in some state of distress. It is essential that our communities plan to make their pension payments on time to support our workers who take care of us.”

Among the auditors’ findings of Lower Towamensing’s books was one that showed the township certified an ineligible non-uniformed employee and overstated payroll by $12,901 on a 2019 certification form submitted to the state. The audit says this resulted in an overpayment of state aid to the township in the amount of $2,403.

The auditors also found Lower Towamensing failed to certify an eligible non-uniformed employee and understated payroll by $40,211 on the certification form of 2020 and overstated payroll by $5,460 on the certification form of 2022, and the township failed to return the overpayment of state aid it received.

Since the $2,403 overpayment of state aid in 2019 was not returned to the commonwealth, the department netted the 2019 error against the 2020 and 2022 errors, resulting in a net overpayment of $522 for three years, recommending it be returned to the state.

Auditors found full amounts for 2018, 2019 and 2021 were not deposited into the pension plan due to the turnover in personnel and says current plan officials were unaware of the provisions of the applicable act.

The investigation showed the township received state aid allocations of $18,738 and $17,764, respectively, for 2018 and 2019, but only state aid totaling $11,301 and $8,103 was deposited into the pension plan. In 2021, the township’s state aid allocation was $8,827, and only $7,049 was deposited in the pension plan, auditors reported, recommending the township deposit $16,473, plus interest, into the plan.

The audit report said township officials failed to establish adequate internal control procedures to ensure compliance with the department’s prior audit recommendation and the accuracy of the data certified, and warned: “Due to the potential withholding of state aid, the township’s compliance with the funding recommendation will be monitored subsequent to the release of the audit report and through the next audit of the pension plan.”