Boroughs and townships are required by their codes to have an annual audit made by: (1) three elected auditors, or (2) an elected controller, or (3) under certain circumstances, certified public accountants or public accountants who may be appointed to make the audit instead of or in addition to the elected auditors. The auditor examines the accounting records and accounting practices to enable him to express an informed opinion as to whether or not the balance sheet and the statement of revenues and expenditures prepared from the books and records present fairly the financial position and the results of operations of the municipality, and whether the municipality complied with applicable laws and regulations. The independent review by the auditor includes judgments as to facts, supporting evidence, and adherence to generally accepted accounting principles applied consistently from year to year. In addition to these broad assignments, the auditor should be alert to possible irregularities and fraud, as well as weaknesses in internal control. It is important for the auditor to inform the responsible officials about such weaknesses when they are discovered.
Instead of electing three auditors or a controller, a township may provide for the audit of its accounts by an independent auditor by ordinance. The auditor must be a certified public accountant, a firm of certified public accountants, a competent public accountant or a competent firm of public accountants. The independent auditor is appointed annually by resolution at least 30 days before the close of the fiscal year. When an independent auditor is appointed, the office of elected auditor is abolished. Compensation of the independent auditor is set by the board of commissioners. The independent auditor has all the powers and must perform all the duties outlined in the First Class Township Code for elected auditors.
Below are the reports of the independent audits performed on behalf of Haverford Township.