Northampton Borough Non-Uniformed Pension Plan – Northampton County – Reduced Period Engagement – Period Ended December 31, 2025

The compliance audit of the Northampton Borough Non-Uniformed Pension Plan, as mandated by Pennsylvania’s Act 205, was conducted to assess adherence to state laws, regulations, and policies. The audit reviewed processes from January 1, 2025, to December 31, 2025, including verification of proper state aid deposits, accurate employer contributions, correct employee contributions, rightful retiree benefits disbursement, and timely preparation of the actuarial valuation report. The audit found that, in significant aspects, the plan complied with the applicable standards. However, it noted an issue with the Certification Form AG 385, where incorrect payroll data for a non-uniformed employee led to an underpayment of state aid. The recommendation was for improved internal controls and accurate certification procedures to prevent such errors. Acknowledging this finding, the officials agreed with the recommendations, and evaluation of compliance will continue in subsequent audits. This is an automated summary. Please rely on the contents included in the released audit report.