Borough Code Audit Requirement

It is no longer a requirement that municipalities file their annual budgets with DCED.

According to the Borough Code Section 1196, (a), (e) (1):

(a)The independent auditor shall annually examine, audit and settle all accounts whatsoever I which the borough is concerned and the audit shall consist of an examination in accordance with generally accepted auditing standards and shall include such tests of the accounting records and such other auditing procedures as he considers necessary in the circumstances

(e) It shall be the duty of the independent auditor:

(1) To file a copy of the report with the secretary of the borough and the clerk of the court of common pleas of the county and the Department of Community Affairs not later than ninety days after the close of the fiscal year, and

(2) To publish within ten days thereafter, by advertisement in at least one newspaper of general circulation in the borough, a concise financial statement setting forth the balance in the treasury at the beginning of the fiscal year, all revenues received during the fiscal year by major classifications, all expenditures made during the fiscal year by major functions, and the current resources and liabilities of the borough at the end of the fiscal year, the gross liability and net debt of the borough, the amount of the assessed valuation of the borough, the assets of the borough with the character and value thereof, the date of the last maturity of the respective forms of funded debt and the assets in each sinking fund.

Section 1113 states, “The fiscal records and documents and the minute book and other records and documents of every borough shall be open to the inspection of any taxpayer thereto, at any reasonable time.


Karen O'Neill
Government Policy Specialist
Department of Community & Economic Development
(717) 720-7395
Commonwealth Keystone Building400
North Street, 4th FloorHarrisburg, PA 17120-


From: Mayor Marino [mailto:kmayor@ptd.net] Sent: Friday, June 06, 2008 9:52 PMTo: ONeill, KarenSubject: Re: NewPA.com Contact Us Inquiry


Am I to understand that it is proper to publish the 2006 Budget in June of 2008 and the 2007 is being reviewed in June of 2008. How does the DCED review the Budgets when the Borough has not had an internal Audit in at least 14 years and the Borough does not retain an accountant or a CPA? The Borough will not devulge when or in what local newspaper the 2006 and the 2007 Audits have been published as per the Borough Code which states the mandatory Annual Budget should be published 90 days after the end of the year. When does the Borough have to make the manatory Annual Audit available for public review at the Borough Hall? Gennaro A. Marino ----- Original Message -----


From: ONeill, Karen
To: kmayor@ptd.net
Cc: DC, DCEDCLGS ; Wolfe, Sandra
Sent: Monday, June 02, 2008 1:51 PM
Subject: RE: NewPA.com Contact Us Inquiry

Dear Mr. Marino,

Thank you for contacting the Department of Community and Economic Development (DCED).
Kutztown Boro has filed both their 2006 and 2007 Annual Financial Reports with DCED. The 2006 Annual Financial Reports will be published to the web approximately the last week in June or first week in July. The 2007 Annual Financial Report is currently being reviewed in DCED.

Sincerely,

Karen O'NeillGovernment Policy SpecialistDepartment of Community & Economic Development(717) 720-7395Commonwealth Keystone Building400 North Street, 4th FloorHarrisburg, PA 17120-0225www.newPA.com www.visitPA.com

.

From: kmayor@ptd.net [mailto:kmayor@ptd.net] Sent: Thursday, May 29, 2008 11:04 AMTo: readysetsucceed@newpa.comSubject: NewPA.com Contact Us Inquiry

First Name: Gennaro A.
Last Name: Marino
Company: noneTitle:
residentEmail: kmayor@ptd.net
Phone: 610-683-7977
Field: CitizenQuestion/Comment relates to: Local governmentQuestion/Comment:

Question: Has the Borough of Kutztown filed The Municipal Annual Audit and Financial Reports-DCED-CLGS-30 reports for 2006 and 2007? They are not available to the Public at the Borough Hall and the Borough has not announced when and if they were filed or published in the local newspapers. No financial reports or audits have been avaiable at the Borough Hall for almost a year and one half.