Brown Plus gives Palmyra Borough an unmodified opinion on 2024 financials; highlights transfers to new police commission

Scott Henry, audit partner with Brown Plus, presented the highlights of the borough's 2024 audit and said the firm issued an unmodified opinion on Palmyra Borough's financial statements. He told council the opinion “is the best opinion that we can give” and indicates the statements are materially correct and in accordance with generally accepted accounting principles.

The audit matters: Brown Plus reported total assets decreased by roughly $1.5 million in 2024 and total liabilities decreased by about $2.2 million. Henry said the asset decline reflected capital purchases and the use of ARPA funds, while the liability decline reflected paydown of prior‑year payables, normal debt payments and transfer of compensated‑absence balances related to police staff to the new police commission. He reported governmental‑activities net position of about $15 million and business‑type activities net position of about $7 million.

The nut graf: The audit shows Palmyra finished 2024 with a strong fund position on both the full‑accrual and modified‑accrual bases, according to Brown Plus, but the financial picture for items such as pensions remains estimate‑sensitive and will update in later valuations.

On operations, Brown Plus said business‑type (utility/treatment) revenues rose about $240,000 (≈8 percent) in 2024 because of increased usage and a rate increase; expenses for those activities fell about $80,000, producing roughly $390,000 of net income that will remain in the business fund. For the general fund, revenues grew about $170,000—about $160,000 more than budget—largely from higher real estate transfer tax receipts and grant expenditures. General fund expenditures rose about $860,000 versus the prior year but were about $250,000 under the 2024 budget, driven partly by costs of forming the police commission and several capital projects (stormwater, paving, security system upgrades and a pickup purchase).

Brown Plus noted approximately $1.6 million of capital asset purchases in 2024 offset by about $1.2 million of depreciation; the firm flagged a one‑time loss (about $144,000) recorded when assets with remaining book value transferred to the newly formed Western Lebanon County Regional Police Department. Henry said that, after discussion with borough staff, the police entity is disclosed as a related party under GASB standards and issues its own financial statements rather than being consolidated as a component unit.

On long‑term obligations, Henry told council Palmyra has outstanding general obligation bonds issued in 2018 of about $5.2 million and a related‑party obligation labeled “due to other governments” for the treatment plant (agreement with North Londonderry) of about $5.1 million; both obligations carry final maturities in 2039–2040. He also described pension results: Palmyra participates in PMRS plans whose valuations are one year behind under GASB rules; at the valuation date noted in the audit the police pension showed a net asset of roughly $660,000 and the nonuniform plan a small asset (about $17,000), but Henry cautioned those results are estimates and can change.

Council action and next steps: Following the presentation councilors asked a few clarifying questions. Council approved Resolution 2025‑06 appointing Brown Plus to perform the 2025 annual audit for a fee not to exceed $45,000. Henry invited council and borough staff to contact him or the Brown Plus team with follow‑up questions; he also pointed members to the full financial statements and notes for detailed disclosures.

Ending: Councilors thanked auditors and borough staff for their work. Brown Plus highlighted forthcoming GASB guidance and said it will help the borough implement any new standards.