Auditor General DePasquale Calls For Examination of Two Pension Plans in Munhall Borough, Allegheny County
Auditor General DePasquale Calls For Examination of Two Pension Plans in Munhall Borough, Allegheny County
HARRISBURG (Feb. 13, 2014) – Auditor General Eugene DePasquale today ordered auditors to examine the management of two municipal pension plans in Munhall Borough, Allegheny County, in light of recent news reports about the borough’s financial troubles.
“My concern for Munhall Borough employees who will be counting on their pension some day and for local taxpayers is heightened by recent revelations that the borough struggled to secure a loan to pay for basic municipal services,” DePasquale said. “Residents and employees deserve answers about the boroughs financial picture and we can provide answers in matters related to the two pension plans.”
DePasquale said he wants to ensure the borough does not miss mandatory payments to the police pension fund or understate the non-uniformed pension plan members’ payroll. Both problems were found in the last audits.
He said his auditors will follow up on previous audit findings contained in the police and non-uniformed employee pension plan audit reports. The police pension plan audit found the borough did not make nearly $200,000 in required payments to the fund in 2010, 2011 and 2012. The non-uniformed pension plan audit report found understated payroll in 2011 and 2012 that resulted in underpayments of state aid of nearly $10,000. The audits also found inadequate record keeping and a lack of internal control in managing the municipal pension plans.
The audits will determine if municipal officials took appropriate corrective action to address the findings contained in prior audit reports and if the pension plans were administered in compliance with applicable state laws, regulations, contracts, administrative procedures, and local ordinances and policies.
The Department of the Auditor General regularly audits 2,642 local government pension plans, including 963 police, 81 firefighter and 1,598 non-uniformed municipal employee pension plans.
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