Ferguson Township Financial State "Deemed Healthy" By Independent Financial Audit

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At the July 19, 2022 Board of Supervisors Regular Meeting, Baker Tilly, financial advisory firm, provided their presentation on the 2021 Ferguson Township Financial Audit they conducted and completed on behalf of the township.

Each year, this audit is performed by a 3rd party vendor in order to ensure transparency and an unbiased assessment of Ferguson Township's financial standing and statements. This report is used for an annual update on Ferguson Township's financial stability and utilized for strategic planning purposes by the township.

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Both the presentation and audit were executed by John Compton, CPA, Adam Hartzel, CPA, and Christine Zoerner, Senior Associate with Baker Tilly. The final product will be submitted to Ferguson Township by July 31, 2022.

Baker Tilly's responsibilites for the audit included gathering evidence to support Ferguson Township's presented financial statements. The firm gathers evidence to affirm these financial statements are valid by confirming cash and investments with Ferguson Township's banking institutions and investment managers by reviewing amounts on deposit with those institutions. 

For tax revenues and incoming grant funding, the firm communicates with the organizations that monitor real estate taxes and income taxes such as the federal and Pennsylvania State governments, to ensure the amounts match to the documents and statements provided by Ferguson Township. Expenditure assessment, also known as "vouching", includes looking at underlying contracts and invoices with the township and are then compared with similar-sized governments.

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In terms of findings, Ms. Zoerner indicated that the Township currently sits at $8.2 million for unrestricted fund balances, and is "246 days of spending for the Township and is deemed healthy" according to Baker Tilly's formula. These funds would allow Ferguson Township to meet future budget challenges if those difficulties were to ever arise.

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Revenue sources for each year since 2016 for Ferguson Township are shown in the bar graph below, and indicates each stream of income for the Township and amounts received from each to create the whole general fund.

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Also shown below is how Ferguson Township delegated funds in 2020 and 2021 to each expense. The largest expense in each year was delegated to public safety.

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Overall, Ferguson Township's finances are in a stable, and sound state according to the independent audit executed by Baker Tilly. To watch the full presentation, see this link to C-NET's coverage of the Board of Supervisors Regular Meeting. The full PowerPoint presentation can be found below.

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PDF icon board_presentation_-_7.19.2022.pdf2.16 MB