73 Pa.C.S. Ch. 29

73 Pa.C.S. Ch. 29
in effect

73 Pa.C.S. § 2901 Meetings and general duties.

(a) Meetings.--The township auditors shall meet annually, on the day following the day which is fixed by this part for the organization of the township commissioners. The auditors shall organize by the election of a chair and secretary. Two auditors shall constitute a quorum. (b) Duties.--The auditors shall: (1) Audit, settle and adjust the accounts of the township commissioners, township treasurer, tax collector, secretary and other officers and individuals receiving and disbursing or authorizing the disbursement of the money of the township during the preceding fiscal year. (2) Audit the dockets, transcripts and other official records of the offices of the magisterial district judge of the township to determine the amounts of fines and costs paid or due to the township. A magisterial district judge of the township shall open and make available to the auditors their dockets, transcripts, records and all other official books or papers for the purpose of the audit. If a magisterial district judge charges a fine contrary to ordinances, or to an act which makes the fine payable to the township, the auditors have the power to surcharge the magisterial district judge in the amount undercharged. (3) As directed by the board of commissioners, audit and report to the board of commissioners on the accounts of every officer of the township, upon the death, resignation, removal or expiration of the term of the officer. (c) Audit location.--Unless otherwise agreed to by the auditors and the person being audited, the audit shall be conducted at the place the records of the person are normally kept.

73 Pa.C.S. § 2902 Compensation.

(a) Per diem.--Subject to the limitations in subsection (b), each auditor shall receive $20 per diem, to be paid by the township, for each day necessarily employed in the discharge of the auditor's duties. A day shall consist of not less than five hours in the aggregate. (b) Limitations.--A township auditor may not be entitled to receive compensation for more than the following number of days: (1) In townships with a population of less than 3,000, a maximum of 20 days. (2) In townships with a population of 3,000 or more but less than 10,000, a maximum of 30 days. (3) In townships with a population of 10,000 or more, a maximum of 40 days.

73 Pa.C.S. § 2903 Subpoenas, oaths and perjury.

(a) Powers.--The auditors of each township may: (1) Issue subpoenas to obtain the attendance of: (i) the officers and persons whose accounts the auditors are required to adjust; (ii) executors and administrators of an office under subparagraph (i); and (iii) a person whom it may be necessary to examine as a witness. (2) Compel the production of documents, including financial records, relative to township accounts. If a person refuses or neglects to appear, produce documents or testify, the auditors shall petition the court of common pleas of the county to issue a subpoena to the person and to require the person to produce documents or appear and testify before the court. The court shall issue the subpoena if it deems the documents or testimony relevant to the issue. (b) Oaths.--The auditors may administer oaths and affirmations to all persons brought or appearing before them, whether accountants, witnesses or otherwise. A person swearing or affirming falsely upon examination is guilty of perjury.

73 Pa.C.S. § 2904 Completion, filing and publication of auditor's report and financial statement.

(a) Audit.--The auditors shall complete the annual audit, settlement and adjustment prior to June 30. (b) Publication.--The auditors shall, within 10 days after the completion of the report under subsection (c), publish, by advertisement in at least one newspaper of general circulation in accordance with the provisions of section 1107 (relating to legal advertising), concise financial information prepared or approved by the auditors and consistent with the audited financial statements for total assets, total liabilities and total net position at the end of the fiscal year and total revenue, total expenses and changes in total net position for that fiscal year and a reference to a place within the township where copies of the financial statements and accompanying auditors' report may be examined. If the full financial statements and accompanying auditors' report are not published, copies shall be supplied to the publishing newspaper when the request for publication is submitted. (c) Form.--The annual auditors' report and annual financial statement shall be presented on a uniform form prepared and furnished as provided in section 4903 (relating to uniform financial report and forms). (d) Requirements.--The auditors' report and financial statement shall be signed by all of the auditors, and the auditors' report shall be duly verified by the oath of one of the auditors. A secretary of the auditors shall file a copy of the report with the secretary of the township, the clerk of the court or the prothonotary, as may be provided by local rules of court, the Department of Community and Economic Development and the Department of Transportation not later than June 30 of each year. A secretary of the auditors refusing or willfully neglecting to file the report commits a summary offense. If the failure to file the report within the period specified is due to the failure of one or more of the auditors to prepare the statement upon which the report is to be based, the auditor commits a summary offense.

73 Pa.C.S. § 2905 Canceling orders.

The auditors shall cancel an order or voucher that the auditors find has been paid by writing or stamping the word "audited" on the face of the order or voucher.

73 Pa.C.S. § 2906 Penalty for failure to perform duty.

An auditor who fails to comply with the provisions of this subchapter commits a summary offense.

73 Pa.C.S. § 2907 Attorney to auditors.

(a) Employment.--The auditors may employ an attorney if a disagreement occurs between the auditors and an official or a board of officials whose accounts the auditors are required to audit. The attorney shall not be employed under this subsection until all of the following occur: (1) Reasonable efforts to reach an agreement have been made. (2) Notice of the auditors' intention to hire the attorney has been given to the official or board of officials. (b) Compensation.--The auditors, with the agreement of the board of commissioners, shall determine the compensation to be paid to the attorney. If the auditors and board of commissioners cannot agree on the compensation, upon petition of the auditors, the court of common pleas shall establish the compensation for the attorney employed by the auditors. The compensation for the attorney shall be paid out of the township general fund.

73 Pa.C.S. § 2908 Surcharge by auditors.

(a) Surcharge authorized.--The amount of a balance or shortage or an expenditure of a kind or made in a manner prohibited or not authorized by the laws of this Commonwealth that causes a financial loss to the township shall be a surcharge against any of the following: (1) An officer or person responsible for the balance or shortage. (2) An individual who has permitted or approved the expenditure by a vote, an act or neglect. (b) Surcharge limitations.-- (1) An elected or appointed officer of a township or a person may not be surcharged for an act, error or omission in excess of the actual financial loss sustained by the township. (2) The imposition of a surcharge shall be based on the results of the act, error or omission and the results had the procedure been conducted in accordance with the laws of this Commonwealth. The surcharge may not exceed the difference between the costs actually incurred by the township and the costs that would have been incurred had the authorized procedures been conducted in accordance with law. (3) Paragraph (1) shall not apply to a case involving fraud or collusion by an elected or appointed officer or to a penalty payable to the Commonwealth. Notwithstanding the provisions of this section, the procedures in the act of May 25, 1945 (P.L.1050, No.394), known as the Local Tax Collection Law, shall apply to balances and shortages in the tax accounts of the tax collector. (4) An elected or appointed officer of a township may not be surcharged if the officer acted in good faith reliance on a written, nonconfidential opinion of the solicitor of the township or on an opinion of the solicitor of the township publicly stated at an open meeting of the township and recorded in the official minutes of the meeting. This paragraph shall not apply if a solicitor's opinion has been rendered under duress or if the parties seeking and rendering the solicitor's opinion have colluded to purposefully commit a violation of law. As used in this paragraph, the term "solicitor" includes a special counsel appointed by the township for a specific matter. (c) Penalties.--In a matter involving a financial transaction, an elected or appointed officer knowingly and willfully acting in violation of law commits a misdemeanor of third degree and, upon conviction, may be sentenced to pay a fine not to exceed $100. Cross References. Section 2908 is referred to in section 2923 of this title.

73 Pa.C.S. § 2909 Balances due to be entered as judgments.

A balance against an elected or appointed officer of the township in a report of the auditors shall constitute a surcharge against the officer in the same manner as a balance expressly stated in the report to be a surcharge. The amount of a balance and any express surcharge shall, if no appeal is taken or after an appeal has been finally determined in favor of the township, be entered by the prothonotary as a judgment against the officer. The clerk of the court of common pleas shall certify the amount of each balance or surcharge contained in a report of the auditors for which no appeal has been initiated within the time period specified under this subchapter to the court of common pleas for entry by the prothonotary as a judgment.

73 Pa.C.S. § 2910 Collection of surcharges.

An auditor, registered elector or taxpayer of the township may enforce the collection of a judgment entered for a surcharge for the benefit of the township by an appropriate action or execution. A registered elector or taxpayer shall file a bond with one or more sureties in the court of common pleas conditioned to indemnify the township from all costs of the proceedings. An enforcement action under this section shall be subject to the rights of appeal from the report of the auditors specified under this subchapter.

73 Pa.C.S. § 2911 Appeals from report.

A township, registered elector or taxpayer on behalf of the township or an officer or person whose account is settled or audited by the auditors may appeal from the settlement or audit to the court of common pleas within 45 days from the date of the filing of the report of the auditors with the clerk of the court of common pleas. Cross References. Section 2911 is referred to in sections 2916, 2923 of this title.

73 Pa.C.S. § 2912 Appeal bond.

An appeal by a registered elector, taxpayer or officer may not be allowed unless the appellant secures a bond with sufficient surety to prosecute the appeal and pay all the costs of appeal under any of the following circumstances: (1) If the appellant is a registered elector or taxpayer, the appellant fails to obtain a final decision more favorable to the township than that awarded by the auditors. (2) If the appellant is an accounting officer, the appellant fails to obtain a final decision more favorable to the officer than that awarded by the auditors. Cross References. Section 2912 is referred to in section 2923 of this title.

73 Pa.C.S. § 2913 Procedure on appeals.

(a) Investigatory burden.--In a proceeding upon an appeal from a report of the auditors, the accounts of the officer or person in question may be investigated de novo. The officer or person whose accounts are involved in the appeal shall have the burden of establishing the right to credits claimed by the officer or person. The opposing party in the appeal may use any facts, figures or findings of the report of the auditors as prima facie evidence against an officer or person whose accounts are involved in the appeal. (b) Consolidated appeals.--If more than one appeal from the report of the auditors is heard, the court may on its own motion or shall, upon petition of an interested party, direct the several appeals be consolidated. Cross References. Section 2913 is referred to in section 2923 of this title.

73 Pa.C.S. § 2914 Findings of facts and law, judgment and appeals.

After a hearing, the court shall file its findings of fact and law and enter a judgment accordingly. A judgment entered by the court may be enforced by the prevailing party by an appropriate proceeding. An appeal from the court's ruling may be initiated in accordance with the laws of this Commonwealth. Cross References. Section 2914 is referred to in section 2923 of this title.

73 Pa.C.S. § 2915 Cost of appeals.

In a case of appeal from the report or audit of the auditors to the court of common pleas, the cost of the appeal shall be determined by the court. Cross References. Section 2915 is referred to in section 2923 of this title.

73 Pa.C.S. § 2916 Attorney fees.

(a) Award.--Upon final determination of an appeal initiated under section 2911 (relating to appeals from report) from any report, audit or settlement of the account of a township officer, attorney fees shall be awarded as follows: (1) If, in the opinion of the court, the final determination is more favorable to the township officer involved than that awarded by the auditors, the township shall pay reasonable attorney fees, or a portion of reasonable attorney fees as specified under paragraph (3), incurred by the township officer in connection with the surcharge proceeding. (2) If, in the opinion of the court, the final determination is more favorable to the township than that awarded by the auditors in the case of an appeal initiated by the township or a taxpayer, the township officer who is the subject of the surcharge proceeding shall pay reasonable attorney fees, or a portion of reasonable attorney fees as specified under paragraph (3), incurred by the township, elector or taxpayer in connection with the surcharge proceeding. (3) If, in the opinion of the court, the final determination is in part more favorable to the township and in part more favorable to the township officer involved in the surcharge proceeding than that awarded by the auditors, the court may order any of the following: (i) The township to pay a portion of reasonable attorney fees incurred by the township officer in connection with the surcharge proceeding. (ii) The township officer who is the subject of the surcharge proceeding to pay a portion of reasonable attorney fees incurred by the township or taxpayer in connection with the surcharge proceeding. (b) Other accounts.--In cases of appeals involving accounts other than accounts of township officers, the court shall allocate attorney fees in the court's discretion. Cross References. Section 2916 is referred to in section 2923 of this title.

73 Pa.C.S. § 2921 Appointment of independent auditor.

If an ordinance has been enacted for the appointment of an independent auditor in lieu of elected auditors under section 1703(a)(3) (relating to elected officers), the board of commissioners shall appoint an independent auditor by resolution and the provisions of this subchapter shall apply. The independent auditor shall be a certified public accountant or a firm of certified public accountants.

73 Pa.C.S. § 2922 Audits.

(a) Annual audit.-- (1) The independent auditor shall conduct an annual audit of the finances of the township, as presented in the annual audit and financial report, which shall include all of the following: (i) Each account in which the township is concerned. (ii) The accounts of township officers, departments and offices that collect, receive and disburse public money on which the independent auditor is required to report under this subchapter. (iii) The accounts of township officers, departments and offices that are authorized with the management, control or custody of public money on which the independent auditor is required to report under this subchapter. (2) Nothing in this subchapter shall be construed to prohibit the board of commissioners from requiring the independent auditor to conduct a more complete or comprehensive audit than is required under this subchapter. (b) Interim audits.-- (1) The board of commissioners may require advisory interim reports from the independent auditor. (2) The board of commissioners may direct the independent auditor to audit the accounts of a township officer upon the death, resignation, removal or expiration of the term of the township officer. (c) Standards.--An annual or interim audit shall consist of an examination in accordance with United States generally accepted auditing standards. Errors or irregularities detected in the course of an audit shall be communicated in accordance with the standards under this subsection. (d) Definition.--As used in this subchapter, the term "annual audit and financial report" means the report that is presented on the uniform form as provided in section 2923(d) (relating to completion, filing and publication of annual audit and financial report).

73 Pa.C.S. § 2923 Completion, filing and publication of annual audit and financial report.

(a) Completion.--The independent auditor shall complete the annual audit by June 30 of each year as directed by the board of commissioners. (b) Filing.--A copy of the audited annual audit and financial report shall be filed with the following: (1) The secretary of the township, in accordance with applicable rules and regulations of the township. (2) The clerk of the court or the prothonotary, as may be provided by local rules of court. (3) The Department of Community and Economic Development, in accordance with the rules and regulations of the Department of Community and Economic Development. (c) Publication.--Notice that the audited annual audit and financial report is available for public inspection shall be published once in at least one newspaper of general circulation by the secretary of the township in accordance with section 1107 (relating to legal advertising). Public inspection shall be in accordance with the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. A copy, which may be in electronic format, of the complete annual audit and financial report, including the accompanying independent auditor's report, shall be supplied to the publishing newspaper when the request for publication is submitted. Nothing in this section shall be construed to preclude the township from providing the township's audited annual audit and financial report on the township's publicly accessible Internet website. (d) Presentation.--The annual audit report and annual financial statements shall be presented on a uniform form prepared and furnished as provided under section 4903 (relating to uniform financial report and forms). (e) Appeals.--Nothing in this subchapter shall prohibit a registered elector or taxpayer from appealing an annual audit and financial report of the independent auditor in accordance with and subject to the procedures under sections 2911 (relating to appeals from report), 2912 (relating to appeal bond), 2913 (relating to procedure on appeals), 2914 (relating to findings of facts and law, judgment and appeals), 2915 (relating to cost of appeals) and 2916 (relating to attorney fees) if the registered elector or taxpayer believes a surcharge as described under section 2908 (relating to surcharge by auditors) should exist against an officer or person. The appeal shall be initiated within 45 days of the filing specified under subsection (b). Cross References. Section 2923 is referred to in section 2922 of this title.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=73Fetched: 10/16/2026