Audit: Lancaster took too much pension aid again
(The Center Square) – Sloppy paperwork concerning its pension fund has again required the City of Lancaster to repay money to the state government.
After a previous audit docked the city for receiving about $5,000 in state aid it shouldn’t have for its pension, the latest report from the auditor general found that the city again submitted inaccurate pension data that led to a $26,000 overpayment.
That money, plus interest, will now have to be returned to the state.
The problem came from overstating payroll, including one worker incorrectly on a certification form in 2021 and four workers incorrectly in 2022 that determines state pension aid.
“City officials certified employees who were not employed full-time for the required six consecutive months during the prior calendar year,” the report noted. “Additionally, the city again lacked adequate internal control procedures, such as having another individual review the data certified to ensure compliance with the instructions that accompanied Certification Form AG 385 prior to submission.”
While state aid overpayments and underpayments happen semi-regularly for a number of townships and cities every year, as The Center Square previously reported, ensuring they’re kept to a minimum keeps local governments in line for state assistance.
In extreme cases, “the city’s future state aid allocations may be withheld until the finding recommendation is complied with,” the report noted.
More eyes on the data could catch the issue before the auditor flags it.
“We also again recommend that in the future, plan officials establish adequate internal control procedures, such as verifying the accuracy of information generated from the city’s payroll system and having at least two individuals review the data certified,” the report noted.
Otherwise, the city’s pension was financially sound. The audit noted that it slightly improved its funded ratio – assets to liabilities – from 77.8% in 2019 to 79.9% in 2021.
