[Amended 12-18-2001 by Ord. No. 326]
A.
The certified public accountant (CPA) or firm of CPAs designated
by the Borough Council to perform annual audits and special audits
shall examine, audit and settle all accounts whatsoever in 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 are considered necessary in the circumstances.
B.
The certified public accountant(s) shall audit the accounting records
of the Borough for the fiscal year and shall prepare a report on the
examination, which shall set forth:
(1)
The scope of the examination.
(2)
An opinion of the fairness of the presentation of the financial statement
of the Borough, which shall show a complete statement of the financial
condition of the Borough, giving in detail the actual indebtedness,
the amount of the funded debt and the amount of the floating debt
thereof, the valuation of taxable property therein, the assets of
the Borough, with the character and value thereof and the date of
maturity of the respective forms of funded debt thereof.
(3)
The amount of any balance or shortage or any expenditure of any kind,
or made in a manner, prohibited or not authorized by statute which
came to his attention during the course of his examination and which,
in his opinion, causes a financial loss to the Borough, which loss
is material in relation to the receipts and disbursements of the Borough.
C.
The amount of any balance or shortage or of any expenditure of any
kind, or made in a manner, prohibited or not authorized by statute,
which causes a financial loss to the Borough, shall be a surcharge
against any officer against whom such balance or shortage shall appear,
or who, by vote, act or neglect has permitted or approved such expenditure,
but no elected or appointed official of the Borough shall be surcharged
for any act, error or omission in excess of the actual financial loss
sustained by the Borough, and any surcharge shall take into consideration
as its basis the results of such act, error or omission and the results
had the procedure been strictly according to law. The provisions hereof
limiting the amount of any surcharge shall not apply to cases involving
fraud or collusion on the part of officers, nor to any penalty ensuring
to the benefit or payable to the commonwealth.
D.
It shall be the duty of the certified public accountant(s):
(1)
To file a copy of the annual and any special report with the Secretary
of the Borough, the Clerk of the Court of the County and the Department
of Community and Economic Development not later than 90 days after
the close of the fiscal year.
(2)
To publish within 10 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, 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. The independent auditor shall make
his report on the uniform form prepared by the committee, consisting
of four representatives from the Pennsylvania State Association of
Boroughs and the Secretary of Community and Economic Development,
or his agent.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
E.
The compensation of the independent auditor shall be determined by
the Council and paid out of Borough funds.
A.
The independent auditor, with the consent of the Borough Council,
may employ an attorney whenever the same is deemed advisable by him,
and the compensation of such attorney shall be determined by the Borough
Council and shall be payable by the Borough out of the general funds
of the Borough.
B.
The independent auditor of the Borough shall have the power to issue
subpoenas to obtain the attendance of the officers whose accounts
he is required to adjust, their executors and administrators and of
any persons whom it may be necessary to examine as witnesses and to
compel their attendance. If any person shall refuse or neglect to
appear or testify, the independent auditor shall petition the Court
of Common Pleas of the County to issue a subpoena to such person and
to require him to appear and to testify before the Court. The Court
shall issue such subpoena if it deems the testimony relevant to the
issue.
C.
The independent auditor shall have power to administer oaths and
affirmations to all persons brought or appearing before him, whether
accountants, witnesses or otherwise. All persons guilty of swearing
or affirming falsely on such examination shall be liable to the pains
and penalties of perjury.
D.
If any person appearing before such independent auditor for examination
shall refuse to take such oath or affirmation or, after having been
sworn or affirmed, shall refuse to make answer to such questions as
shall be put to him by the independent auditor touching the accounts
or the official conduct of such public officers or any of them, then
the independent auditor may petition the court to issue its subpoena
as hereinbefore provided.
E.
Witnesses, other than officers of the Borough, attending before the
independent auditor and persons or officers serving subpoenas shall
be paid out of the Borough treasury, upon orders drawn on the Borough
treasury, pursuant to authorization by the independent auditor, the
same fees as are payable for rendering similar services in civil proceedings
before a Magisterial District Judge and the amount thereof shall be
made a part of the charge against any officer who shall be charged
by the independent auditor with any balance; provided that any such
costs shall have been incurred in establishing said balance. Upon
collection of any such costs from any officer, they shall be repaid
into the Borough treasury.
F.
If any person in possession of books, vouchers or papers relative
to public accounts before the independent auditor shall refuse to
produce the same or if any officer whose accounts are to be settled
and adjusted by such independent auditor refuses to attend or submit
to examination as is hereinbefore directed, the independent auditor
may proceed, by the examination of witnesses and other evidence, to
ascertain and settle, as near as may be, the amount of public money
received by such officer and its application to public purposes or
otherwise.
[Amended 12-18-2001 by Ord. No. 326; at time of adoption of Code (see
Ch. 1, General Provisions, Art. I)]
Any balance, in any report of the independent auditor, against
any officer of the Borough shall constitute a surcharge against such
officer as fully as if expressly stated in said report to be a surcharge,
and the amount of any such balance and of any express surcharge shall,
if no appeal is taken or after an appeal has been finally determined,
be entered by the Prothonotary as a judgment against such officer
and in favor of the Borough. The Clerk of Courts shall certify the
amount of every balance or surcharge contained in any such report,
from which no appeal has been taken within time herein provided, to
the Court of Common Pleas, for entry thereof by the Prothonotary as
a judgment. Any taxpayer of the Borough may enforce the collection
thereof, for the benefit of the Borough, by action or execution, upon
filing in the Court of Common Pleas a bond in the sum of $500 with
one or more sureties, conditioned to indemnify the Borough from all
costs which may accrue in the proceedings undertaken by such taxpayer;
subject, however, to all rights of appeal from the report of independent
auditors granted by 8 Pa.C.S.A. § 1059.11. If any person
or persons have been or shall be surcharged for an illegal purchase
and no fraud or collusion is shown and the surcharge is paid to the
Borough, then the articles purchased shall become the property of
the person or persons surcharged.
