Regular Session 2019-2020 House Bill 1582 P.N. 2577

PRIOR PRINTER'S NO. 2012

PRINTER'S NO. 2577

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1582

Session of

2019

INTRODUCED BY GREINER, RYAN, FEE, GAYDOS, ZIMMERMAN, LAWRENCE,

KAUFFMAN, MENTZER, KEEFER, HICKERNELL, MIZGORSKI AND

WHEELAND, JUNE 5, 2019

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF

REPRESENTATIVES, AS AMENDED, SEPTEMBER 24, 2019

AN ACT

Amending the act of May 1, 1933 (P.L.103, No.69), entitled "An

act concerning townships of the second class; and amending,

revising, consolidating and changing the law relating

thereto," in auditors and accountants, further providing for

appointment of accountant and providing for APPOINTMENT OF

INDEPENDENT AUDITOR AND abolishment of office of elected

auditor.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 917(b)(2) of the act of May 1, 1933

(P.L.103, No.69), known as The Second Class Township Code, is

amended to read:

Section 917. Appointment of Accountant.--* * *

(b) * * *

(2) (i) At least thirty days prior to the organizational

meeting or thirty days prior to any vote to appoint a certified

or competent public accountant or a firm of certified or

competent public accountants to replace the elected auditors,

the board of supervisors shall advertise in a newspaper of

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general circulation the intent to appoint a certified or

competent public accountant or a firm of certified or competent

public accountants to replace the elected auditors.

(ii) Except after abolishing the office of auditor under

section 918, the board of supervisors at the organizational

meeting shall pass a resolution reaffirming the appointment

under this section.

* * *

Section 2. The act is amended by adding a section to read:

Section 918. APPOINTMENT OF INDEPENDENT AUDITOR; Abolishment

of Office of Elected Auditor.--(a) The board of supervisors may

provide, by ordinance passed by a two-thirds vote of the entire

board of supervisors, for the appointment of an independent

auditor who must be a certified public accountant registered in

this Commonwealth, a firm of certified public accountants

registered in this Commonwealth or a competent public accountant

or a competent firm of public accountants.

(b) When an ordinance has been adopted under subsection (a),

an independent auditor shall be appointed annually, by

resolution before the close of the fiscal year. The independent

auditor shall make an independent examination of the accounting

records of the borough for the fiscal year and perform the other

duties and exercise the powers as conferred upon the independent

auditor under section 917. THE BOARD OF SUPERVISORS SHALL ENTER

INTO A CONTRACT FOR EACH APPOINTMENT. THE INDEPENDENT AUDITOR

SHALL EXAMINE, AUDIT AND SETTLE THE ACCOUNTING RECORDS OF THE

TOWNSHIP FOR THE FISCAL YEAR. THE INDEPENDENT AUDITOR SHALL HAVE

THE SAME POWERS AND DUTIES, EXCEPT FOR SETTING COMPENSATION OF

SUPERVISORS EMPLOYED BY THE TOWNSHIP, AND BE SUBJECT TO THE SAME

PENALTIES AS THE ELECTED AUDITORS UNDER THIS ARTICLE. THE

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COMPENSATION FOR INDEPENDENT AUDITORS SHALL BE SET BY THE BOARD

OF SUPERVISORS. THE RESPONSIBILITY TO PUBLISH THE CONCISE

FINANCIAL STATEMENT AS PROVIDED BY SECTION 904 SHALL BE

COMPLETED BY THE TOWNSHIP SECRETARY UPON RECEIPT OF THE

STATEMENT FROM THE INDEPENDENT AUDITOR WITHIN THE REQUIRED TIME

FRAME.

section, the office of elected township auditor shall be

abolished BY ORDINANCE AS PROVIDED UNDER SUBSECTION (A) , but the

township ELECTED auditors then in office shall continue to hold

office during the term for which they were elected, and the

township auditor ELECTED AUDITORS shall not audit, settle or

adjust the accounts audited by the independent auditor but shall

perform the other duties of office. NO ADJUSTMENTS TO THE

COMPENSATION OF SUPERVISORS EMPLOYED BY THE TOWNSHIP MAY BE MADE

BY THE ELECTED AUDITORS.

(d) (1) If any township has provided by ordinance for the

audit of its accounts by an appointed INDEPENDENT auditor, the

township may at any time repeal the ordinance UNDER SUBSECTION

(A) , and the contract under section 917 SUBSECTION (B) shall be

canceled as of the date set in the ordinance.

(2) The township may, at the next municipal election

following the repeal of the ordinance, elect three auditors, one

for a term of two years, one for a term of four years and one

for a term of six years, on the first Monday in January

following the election. The elected auditors shall succeed the

appointed auditor and shall have and possess all the powers and

perform all the duties provided in this part for elected

auditors.

(3) If, at any time after the effective date of an ordinance

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abolishing the office of appointed auditor, there shall be a

vacancy in the office of elected auditor, the board of

supervisors shall fill the vacancy in the manner prescribed in

section 407.

(e) (1) The duties of the elected auditor under section 606

relating to setting compensation for supervisors that hold other

employee positions shall be performed by the supervisors.

(2) The board of supervisors shall establish a series of

salary schedules that apply to any supervisor that may hold an

employee position with the township.

(3) The salary schedules shall be established through an

ordinance that cannot take effect until after the next municipal

election and may not be adjusted for six years. THE ORDINANCE

MAY BE PASSED BY THE BOARD OF SUPERVISORS PRIOR TO THE EFFECTIVE

DATE OF THE ABOLISHMENT OF THE BOARD OF AUDITORS.

(4) ALL OTHER COMPENSATION, INCLUDING, BUT NOT LIMITED TO,

PENSIONS, MAY BE CHANGED BY ORDINANCE BY THE BOARD OF

SUPERVISORS AS NEEDED. ANY CHANGES MADE SHALL NOT TAKE EFFECT

UNTIL THE BEGINNING OF THE SUPERVISORS' NEXT TERM OF OFFICE.

Section 3. This act shall take effect in 60 days.

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