The state auditor general’s office found that Rush Township received a $3,921 overpayment in state aid due to an error on a certification form following an audit of the non-uniformed pension plan.
The township certified one ineligible non-uniformed employee on a form filed in 2015, and this information is used to calculate state aid the township is owed for distribution to its pension plans, according to the auditor general’s findings.
The township then used the overpayment to pay the minimum municipal obligation to the plan. If the township refunds the state from the plan, the plan’s minimum obligation will not be met, the auditor general found.
The auditor general recommended that the township refund the state with interest and also pay the minimum obligation deficiency to the plan, if plan funds are used to pay the state. Further, plan officials should establish adequate internal controls procedures, such as having at least two people review the data certified to ensure compliance.
The township agreed with the auditor general’s finding without exception.
An audit of the township’s police pension plan found nothing to indicate the plan was not being administered in compliance with applicable laws or procedures.