Report shows slight surplus

Auditor: 2016 books ‘what we like to see’

The books have been examined, and the bottom line is: 2016 was a strong year for Hatfield Township’s finances.

“Overall, for the year, the general fund had a better performance in 2016 than it did in ’15. That’s what we like to see,” said auditor Julia Davis.

Davis, an auditor and accountant with Dunlap & Associates, gave Hatfield’s commissioners a detailed look at the township’s 2016 financial audit during the board’s July 26 meeting. Total township assets increased by roughly $1.69 million over that budget year, from $39.54 million in 2015 to $41.2 million in 2016.

“The revenues for 2016 in the general fund were $10 million, versus $9.4 million the year before. You had some increases in your taxes — not the millage, but the earned income tax (receipts), transfer tax, things like that,” Davis said.

Transfer tax revenue jumped from $279,330 in 2015 to $441,313

in 2016, a jump Davis said was likely caused by the start of two new residential developments in the township.

That increase was also reflected in an increase in professional services costs, from $192,720 in 2015 to $286,080 in 2016.

“Charges for services were way up: there was a lot of building activity during the year,” she said.

As of Dec. 31, 2016, township assets added up to $35.87 million from governmental activities, with an additional $5.37 million from the Hatfield Aquatic Center, which is termed “business-type activities” in the auditor’s report.

“Overall, for all of the funds in ’16, the revenues rose from $11.8 million in ’15 to $12.5 million in ’16; and overall, the change in fund balance increased by $593,000, which is also an improvement over ’15. So: good year,” Davis said.

The 2016 audit reports

tops 100 pages for the first time, Davis told the board, and of that total roughly 50 pages are detailed notes explaining certain aspects of the financial statements; 15 of those 50 pages are details on the township’s pension obligations. According to the audit, the township’s total pension liability grew from $17.7 million in 2015 to $18.8 million in 2016, but the ratio of funding slightly increased for the police pension fund and slightly decreased for nonuniform employees.

“On the police pension plan, your net assets were at 82 percent of the liability, so it’s underfunded, but almost all pensions are underfunded at this point, and it did get better from 2015: it went from 81 to 82 (percent), so that’s good,” Davis said.

“The nonuniform is at 96 percent (funded) for 2015. That went down a little bit, but still, 96 percent is pretty good. You’re not in distress,” she said.

Two letters were also included with the audit’s financial statements, and the entire package and prior

year’s auditors are available on the township’s website under the “Government” heading, then “Departments,” then “Finance Department.” Davis said one letter articulates that the auditing firm found no difficulties or problems in conducting the audit, while the second contains recommendations for improving financial controls.

“Most of them have been addressed, or are in the works, at this point,” she said.

Commissioner Gerry Andris said he thought the pension funding ratios could be classified as “pretty darn good,” and Davis agreed; board President Tom Zipfel said “Overall, it sounds like good marks,” and Davis also agreed.