CONNOQUENESSING TWP — An independent annual audit of the township's 2008 finances unearthed dozens of errors, many of which deal with poor record-keeping.

The 18-page report, submitted by certified public accountant Maher Duessel, was to be presented Wednesday at the township supervisors meeting, but no representative from the CPA firm attended.

About 20 township residents at the meeting asked questions about the report's findings, some asking for an itemized, written statement by the board as to the status and possible solutions to each issue.

Supervisor Chairwoman Evelyn Hockenberry denied the requests.

However, Hockenberry and supervisors Stephen Misko and Jack Kaltenbaugh did address some of the report's findings in response to direct questions.

The auditor's report states: "We considered the Township's internal control over financial reporting as a basis for designing our auditing procedures ... but not for the purpose of expressing an opinion on the effectiveness of the Township's internal control."

However, the report later notes regarding the township's internal control that it "does not currently have written policies and procedures to guide many aspects of financial operations" and the township "does not have a formal fraud policy."

The report listed what it called "significant deficiencies," which hinder a municipality's ability to report financial data, and "material weaknesses," which carry a possibility of financial misstatements.

"Significant deficiencies" listed are:

• The township's unexpended Liquid Fuels Fund balance, carrying over from 2007, was over by about $110,000, and some of the money from that fund was used to pay off debt on the township's salt building. Although the report questions that use, Hockenberry said Wednesday it is a permissible use of Liquid Fuels money.

• Walter Peth, an employee reportedly fired by the township in December 2007, remains on the township's health insurance. Township reimbursements for the insurance from the former employee did not begin until March 2008, meaning he owes the township $1,984.

Hockenberry denies he was fired, saying he was on sick leave, although her vote for termination is recorded in the township's meeting minutes for the month, along with Stephen Misko and then-supervisor Ray Kroll.

The audit also broke down what it called "material weaknesses." These included:

• The township was unable to find a receipt book for part of 2008 to validate deposits that were made to its general fund.

• An unreconciled balance of $1,938 existed between the township's general fund balance and ledger balance.

• Incompatible duties were undertaken by township workers, including the assistant secretary/treasurer Rebecca Gizienski, who was preparing and signing her own paychecks.

Gizienski was overpaid by $993 for her work, which was approved by Hockenberry but not the supervisors, according to the audit.

Hockenberry said that issue remains unresolved.

In addition, Hockenberry acted as treasurer and secretary at the same time.

Her $500 monthly "consulting" fees for those roles, totaling $4,000 in 2008, never were approved by the supervisors and the fees were not included on her W-2 wages for tax filing.

Hockenberry said the township had no township auditors at the time to approve the fee, and that it will have to be done after the fact. Hence, the township will not recoup that money as recommended by the auditor.

She continued to receive the consulting fee through Wednesday's meeting, even though she resigned as secretary and treasurer in October. She said that fee now covers her services training the newly hired secretary and treasurer.

• Two bids were submitted for a road project with the contract being awarded to the low bidder of $11,078. No proof of publication for the original bid specifications could be found, and the contractor was paid $3,740 in excess of the bid amount.

Misko said that certain specifications of the project were not included in the contractor's original bid, which was later amended to include them, and that the money was legally spent.

• Several checks were recorded wrong; one which should have been voided as an expense, one recorded as an expense which should have been voided, and two checks which simply disappeared.

• Employee time sheets were not signed as reviewed by their supervisors.

The audit is on file with the Butler County Clerk of Courts.