(5/1) Liberty Township Supervisors and members of the public were given a brief 2017 audit presentation during the April 3 Board of Supervisors meeting. The Township’s External Auditors, Smith Elliot and Kearns Co. (SEK), gave the presentation and were available to answer any questions, from the Supervisors only, related to audit. This time was also taken to discuss recommendations to be considered moving forward.

As part of the audit process, the auditors take time to review board minutes, payroll, cash balances, revenue sources and other items of importance. Included in the overview of the audit, Craig Whitmer of SEK noted that the township’s 2017 audit showed a surplus in the General Fund and a small deficit in the State Fund and Capital Projects Fund. The surplus in the General Fund can be attributed to the drop off in cash in 2016, which used reserves to build the salt shed.

In 2017, the township almost broke even between its revenues and expenditures. The largest revenue source for the township is taxes, which is typical of what is seen in other small municipalities such as Liberty. On the expense side, a large portion of costs consisted of public works, such as roadwork, public safety and general government works, including normal operations of the township. Public safety factors so high because the township has its own primary police service.

SEK representatives ended the presentation by discussing some recommendations for the township to consider moving forward. The lack of segregation between the duties of the Secretary-Treasurer was the main concern, and it can be attributed to the limited number of individuals taking care of all the financial duties on a day-to-day basis. As Whitmer noted, a system of internal control or a system of checks and balances should really be established. Ideally, there would be multiple persons handling the various duties that current Secretary-Treasurer Wendy Peck does single handedly. The prior Secretary-Treasurer LeeEsta Shaffer was in the same situation, and unfortunately the township suffered as a consequence of her improprieties in those roles. To keep that situation from ever happening again, Whitmer recommended the Board look at the cost versus benefit of hiring more people to split the duties held by Peck. Liberty Township residents have been urging Supervisors to hire another person to assist Peck and allow the duties of secretary and treasurer to be split, but so far, Supervisors have not complied for lack of funds, as Supervisor Bob Jackson has noted several times.

Another recommendation was to consider a "lock box" where receipts are sent to the bank instead of the township directly, meaning that the bank maintains the receipts. However, Liberty Township’s bank, Adams County National Bank, does not offer the lock box as an option.

Supervisor Jackson asked Whitmer about conducting a complete forensic audit, to which Whitmer responded that the option was available for SEK to conduct an audit of this magnitude, but it would cost tens of thousands of dollars. "Establishing a set of internal controls now is the best way to stop fraud in the future," stated Whitmer.

After the presentation, residents voiced concern over the lack of communication and action in regards to pursuing the missing money after the LeeEsta Shaffer scandal culminated a year and a half ago. Questions such as, "What’s being done to pursue that money," or "Are we ever going to pursue the missing money," were heard throughout the group of residents in attendance. However, Supervisors refused to comments on the specifics of this matter, only noting that something is in fact being done. Zachary Mills, a special counselor that represents Liberty Township specifically in regards to the Shaffer investigation, spoke to inform residents that, "Because the matters are still in anticipation of litigation, we can’t disclose specific details in regards to the investigation, but the township is moving forward in the investigation. We hope to have more information soon." Further details concerning the investigation will be released as they are presented.