Pennsylvania § 2908 - Surcharge by auditors.

§ 2908. Surcharge by auditors.

(a) Surcharge authorized.--The amount of a balance or shortage or an expenditure of a kind or made in a manner prohibited or not authorized by the laws of this Commonwealth that causes a financial loss to the township shall be a surcharge against any of the following:

(1) An officer or person responsible for the balance or shortage.

(2) An individual who has permitted or approved the expenditure by a vote, an act or neglect.

(b) Surcharge limitations.--

(1) An elected or appointed officer of a township or a person may not be surcharged for an act, error or omission in excess of the actual financial loss sustained by the township.

(2) The imposition of a surcharge shall be based on the results of the act, error or omission and the results had the procedure been conducted in accordance with the laws of this Commonwealth. The surcharge may not exceed the difference between the costs actually incurred by the township and the costs that would have been incurred had the authorized procedures been conducted in accordance with law.

(3) Paragraph (1) shall not apply to a case involving fraud or collusion by an elected or appointed officer or to a penalty payable to the Commonwealth. Notwithstanding the provisions of this section, the procedures in the act of May 25, 1945 (P.L.1050, No.394), known as the Local Tax Collection Law, shall apply to balances and shortages in the tax accounts of the tax collector.

(4) An elected or appointed officer of a township may not be surcharged if the officer acted in good faith reliance on a written, nonconfidential opinion of the solicitor of the township or on an opinion of the solicitor of the township publicly stated at an open meeting of the township and recorded in the official minutes of the meeting. This paragraph shall not apply if a solicitor's opinion has been rendered under duress or if the parties seeking and rendering the solicitor's opinion have colluded to purposefully commit a violation of law. As used in this paragraph, the term "solicitor" includes a special counsel appointed by the township for a specific matter.

(c) Penalties.--In a matter involving a financial transaction, an elected or appointed officer knowingly and willfully acting in violation of law commits a misdemeanor of third degree and, upon conviction, may be sentenced to pay a fine not to exceed $100.

Cross References. Section 2908 is referred to in section 2923 of this title.