A discrepancy in funds held in escrow by the Butler County Prothonotary’s Office is being attributed to a software migration error.

The state Auditor General’s Office found an inadequate accountability of funds held in escrow during a compliance audit of accounting records from Jan. 1, 2019, to Dec. 31, 2022.

Prothonotary Kelli Ferrari said antiquated software did not correctly carry over liability amounts to a new software system when it transferred 21 years of information and costs from the old to the new system in December 2021.

Funds on hand exceeded recorded obligations by $219,614 as of Dec. 31, 2022, without a corresponding liabilities report indicating to whom the funds were due, according to the audit.

Funds held in escrow are taxes, surcharges, fees and fines that the prothonotary’s office collects and remits to the state Department of Revenue and the Administrative Office of Pennsylvania Courts.

The county remitted $422,920 to the department and $7,779 to the state court system in the time period covered by the audit, according to the report. During that time, Glenna Walters served as prothonotary from Jan. 1, 2019, to Jan. 3, 2020. Ferrari has held the office since Jan. 6, 2020.

To remedy the issue, the state Auditor General’s Office recommends the county identify all existing liabilities associated with the office bank account. Any unidentified funds should be accounted for under normal procedures, and the office should ensure that reconciled cash equals unpaid obligations monthly, according to the report.

Ferrari said the antiquated accounting software, which had been in use since 1992, was being replaced when she was elected, and migration software was used to transfer 21 years of information and costs from the old system to the new one in December 2021.

“We have an internal audit every year with Maher Duessel within the county. I have never had an issue with them. It was a migration issue,” Ferrari said.

She said she hopes the new software will resolve the issue.

The office was unable to provide any files that included the liability account balances, according to the report.

“Although there were many benefits to moving to an up-to-date software, we have struggled with the way that the financials were pulled over. While the checking account balances each month as to deposits and disbursements, the escrow accounts are not accurate within the software system.

“I am 100% confident this amount represents money taken in and then disbursed back out that would include rent payments, bond, master’s fees and guardian fees,” Ferrari wrote in her response to the audit. “Sometimes these fees are held for a short period of time (weeks), but the fees can also be held up to several years.

“We have been working with the current software company since December of 2021 toward correcting this issue. On May 6, 2024, there was an update to the software that I am hopeful will work toward correcting this issue.”

The prothonotary’s office complied with state laws governing the collection of money for the state, including whether they have been correctly assessed reported, and remitted, according to the report.