Jefferson Township Non-Uniformed Pension Plan – Fayette County – Audit Period Ended December 31, 2024

The compliance audit of the Jefferson Township Non-Uniformed Pension Plan, conducted under the authority of the Municipal Pension Plan Funding Standard and Recovery Act (Act 205), aimed to assess whether the plan was managed according to state laws, regulations, and policies. The audit covered January 1, 2022, to December 31, 2024, and confirmed compliance except for excessive state aid received in 2022 and 2023, totaling $5,465. The excess remains in the township’s general fund and has not been returned to the Commonwealth, conflicting with Act 205’s provisions. As a corrective measure, the Auditor General recommends returning the excess aid, plus interest, and implementing procedures to prevent future discrepancies. Jefferson Township officials agreed with the findings, and future compliance monitoring is planned. Without correction, state aid may be withheld. The audit highlights management’s responsibility for effective internal controls and accurate reconciliation of state aid allocations with actual pension costs.