Controller summarizes audits; hotel operators owe small back taxes, audit finds
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Summary
The county controller presented highlights from multiple audits — procurement card program, vendor checks, law library, Domestic Relations Agency, and hotel-room tax audits — finding generally appropriate procedures overall but identifying small errors and underpayments totaling modest amounts.
Controller Zareczynski presented a series of county audit highlights to the finance committee on Jan. 22, reporting generally favorable conclusions while noting specific exceptions and amounts due from several hotel operators.
On the procurement-card (P‑card) audit for Sept. 2, 2022–Sept. 2, 2023, the controller said the agreed‑upon procedures engagement found that transaction receipts had been uploaded and that no intentional circumvention of procurement policies was detected. The report noted isolated issues: a sample of fixed-asset purchases showed four purchases that exceeded thresholds and were later added to the fixed-asset report, one transaction improperly included sales tax, and several transactions lacked full authorization from listed cost-center signers. “The conclusion is the procedures performed were appropriate for the engagement’s intended purpose,” Controller Zareczynski said.
In the ACL vendors and checks review (July 1, 2023–June 30, 2024), the controller said the audit identified duplicate payments in two cases to the Pennsylvania Department of Labor and Industry resulting from differing vendor name entries; refunds were requested. The audit also flagged gaps in check numbering attributed to voided stubs or assignment errors and found no material late payments over $500 that were more than 180 days past due.
An audit of the county law library’s cash collection process found no receipts processed in the last year and that bank reconciliations had been completed after delays; the auditors concluded no further work was required. The Domestic Relations Agency fund audit (Jan. 1–Dec. 1, 2023) identified no audit findings and concluded internal controls were functioning as intended.
Controller Zareczynski presented audits of multiple hotels’ room-rental tax remittance for Jan. 1, 2022–Dec. 31, 2023. The Holiday Inn Express (license 128, LVIA) was found to owe $189.45 after auditors concluded the hotel understated taxable room revenue for room-damage and cleaning fees; the SpringHill Suites (license 142) was found to owe $116.98 for similar reporting issues, and Comfort Suites (license 102) was found to owe $8.90. A group of smaller operators had cumulative underpayments of $1,116, the controller said. Auditors noted some operators used the latest remittance forms and timely filings; others failed to submit required exemption documentation for some months.
The controller said the Magisterial District Courts’ financial statements for selected fiscal years were accurately presented on a cash basis and that the audits were performed in accordance with generally accepted auditing standards.
Committee members asked clarifying questions about whether quotes were required on high-dollar P‑card purchases; the controller replied that purchases made by the Department of Human Services were excluded from the administrative code’s quote requirements and that future P‑card system changes will set a $5,000 limit for card transactions.
No committee action was recorded on the audits; the controller said long-form reports were available if committee members wanted further detail.