In the latest move to improve financial security within the township, Kennett Township will use an outside payroll company instead of using Quickbooks to process employee payroll.

At Wednesday’s meeting, the supervisors authorized interim township Manager Alison Rudolf to execute an agreement with The Payroll Factory, beginning in the fourth quarter, at a cost of no more than $3,000 a year.

The move was for a variety of reasons, including cost savings, efficiency, and security, according to Kennett Township Supervisors’ Chairman Scudder Stevens.

The Payroll Factory, based in Malvern, will handle payroll and associated tax filings and paperwork starting Oct. 1, Rudolf said.

The move puts Kennett Township in line with numerous municipalities within Chester County. Rudolf surveyed 15 municipalities in the county and found that 11 of them used outside payroll services.

She met with several payroll companies and ultimately recommended The Payroll Factory.

But the switch to an outside company is “just the first step,” she said, adding that she recommends the new township manager finish the evaluation that’s been started of the township’s accounting system.

With The Payroll Factory, payroll data is sent to them, where it’s processed and returned to the township for approval. Once approved, the township will wire money to cover the payroll costs, according to Rudolf.

Township manager search

Stevens reported that those involved in the search for a new township manager – the supervisors and staff from the Meyner Center at Lafayette College – are “working diligently to finalize our selection – including going through the later stages of due diligence.”

That includes thorough background checks, he said Wednesday.

“When we have all the homework side of things done, we will have complete information to announce – including a timetable,” Stevens said.

Investigations

The investigations by the Chester County District Attorney’s office and a forensic accounting firm into suspicious transactions discovered in April in the township’s financial accounts is proceeding normally, according to Stevens.

The district attorney is looking into whether criminal charges are warranted, and the accounting firm is looking at how the suspicious transactions occurred and to what extent the actions were improper or illegal, Stevens said.

“Both are proceeding normally and on schedule,” he said.

Executive sessions

Township Solicitor David Sander reported the supervisors met in executive session to discuss personnel matters on July 18, 23, and 24, and also Aug. 1, 6, and 7.