Homestead Borough Non-Uniformed Pension Plan – Allegheny County – Reduced Period Engagement – Period Ended December 31, 2024

A compliance audit of the Homestead Borough Non-Uniformed Pension Plan, conducted by the Auditor General based on the Municipal Pension Plan Funding Standard and Recovery Act, revealed significant non-compliance issues. The audit, covering January 1, 2021, to December 31, 2024, highlighted failures in depositing state aid into an eligible pension plan, meeting the minimum municipal obligation, and complying with mandatory distressed provisions under Act 44. These findings indicate the borough’s pension plan was not administered in line with state laws, contracts, and policies, leading to potential withholding of state aid. Complicating these issues was a high turnover in the borough manager position, which resulted in missed deadlines and inadequate internal controls. Recommendations included depositing undeposited state aid with interest into eligible plans and establishing procedures to ensure timely future deposits. Officials agreed with the findings, and the Auditor General intends to monitor compliance in subsequent audits. This is an automated summary. Please rely on the contents included in the released audit report.