THOMAS J. FIORELLI

Certified Public Accountant

7O5 POWELL AVENUE JESSUP, PENNSYLVANIA 18434

TELEPHONE: (57O) 383-O782 FAX: (57O) 383-1515

Board of Supervisors

Township of Pittston, Pennsylvania

Independent Auditors' Report

I have audited the accompanying financial statements of the Township of Pittston, Pennsylvania, as of and for the year ended December 31, 2009, as listed in the table of contents. These financial statements are the responsibility of Township's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

As described in note 1, the Township of Pittston has not conformed with GASB 34 and still prepares its financial statements on the cash basis of accounting that demonstrates compliance with the regulatory basis of accounting and budget laws of the Commonwealth of Pennsylvania, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The differences between the regulatory basis of accounting and accounting principals generally accepted in the United States of America are also described in Note 1 and include non presentation of statements of net assets, activities, and management discussion and analysis.

In my opinion, because of the Township's policy to prepare its financial statements on the basis of accounting discussed in the preceding paragraph, its non conformance with GASB 34 and non presentation of various aforementioned statements, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the Township of Pittston, Pennsylvania, as of December 31, 2009, or changes in financial position and cash flows, where applicable, for the year then ended.

Also, in my opinion, the financial statements referred to above present fairly, in all material respects, the cash and unencumbered cash balances of the Township of Pittston, Pennsylvania, as of December 31, 2009, and the revenues it received and expenditures it paid for the year then ended, on the basis of accounting described in note 1.

The required supplementary information, included in the notes to financial statements, is not a required part of the basis of financial statements but is supplementary information required by the Governmental Accounting Standards Board. I have applied certain limited procedures, which consisted principally of inquires of the plan's management, regarding the methods of measurement and presentation of the supplementary information. However, I did not audit the information and express no opinion on it.

In accordance with Government Auditing Standards, I have also issued my report dated February 5, 2010 on my consideration of the Township of Pittston's internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

Jessup, Pennsylvania February 5, 2010

TOWNSHIP OF PITTSTON

COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND OTHER FINANCING SOURCES

AND CHANGES IN FUND BALANCES - CASH BASIS

FOR THE YEAR ENDED DECEMBER 31, 2009

See Notes to Financial Statements

A complete audit report is available for public inspection at the Business Office between the hours of 11:00 AM to 4:00 PM Monday thru Friday.

John A. Bonita, CPA

Financial Administrator/Business Manager