SOUTH WHITEHALL TWP., Pa. – For the first time in 10 years, the finances of South Whitehall Township have been audited, Commissioner Michael Wolk said at Wednesday night’s board meeting.
His remark came as the board moved to accept township audits for 2016 through 2019. South Whitehall had a 10-year gap in audits, blamed on an embezzlement and changes in software and personnel.
Board President Christina “Tori” Morgan said no single issue caused the audit problems, but she welcomed the Herbein & Co. report on the township’s finances.
“We are in good financial standing,” she said. “We’re where we need to be on a positive path forward.”
The audit approval was a triumph for Commissioners Wolk and Diane Kelly, who have been pushing for audits to be completed since they were elected in 2019.
“Our finances have been audited now for the first time in the last 10 years,” Wolk said. “The 2020 audit is in progress.”
The results show that the township has a fund balance that exceeds its 20% target, Wolk said.
The audit shows some failings in internal controls, accounting-speak for the processes of detecting fraud, providing timely and reliable reports, and complying with laws and regulations. However, the audit was primarily financial, not a review of operations.
Wolk said the financial audit should be followed by an audit of South Whitehall’s internal controls.
“In order for us to do our job, we need timely accurate, financial reports,” he said. Wolk added he agreed with Morgan that the audit gap was the result of many issues.
“I am very proud to say as we sit here today that we have come through these audits and are in good financial shape,” Morgan said.
The board accepted the audits unanimously, with Ben Long and Joseph Setton voting with Morgan, Kelly and Wolk.
Bond issue
The board was also unanimous in moving forward with a bond issue of up to $15 million to refund earlier bonds and pay for capital projects.
The township can expect to pay about 2%, saving money on the 2014, 2018 and 2019 bond issues, while locking in a good rate for capital spending, according to South Whitehall’s advisors.
South Whitehall can expect a solid investment-grade rating on its debt, the bond advisers said at Wednesday’s meeting.
