GASB audit changes force borough to consider new accounting and billing systems; audit cost rises to $56,250

Borough staff told council that recent changes to Governmental Accounting Standards Board (GASB) requirements mean auditors can no longer provide year-end accrual adjustments for the borough, which operates its accounting on a cash basis while its bond requires an accrual-basis audit.

Staff said the auditors will now request reports the borough must produce, and that the borough’s current utility-billing system (in place since 2010) does not integrate with QuickBooks, leaving accounts receivable and accrual reporting incomplete. To meet auditors’ requirements staff said they are evaluating options: upgrading the accounting system, replacing the utility-billing system so the two communicate, or hiring a third-party accounting firm to prepare accrual entries. Staff said they are getting vendor prices for potential changes for 2026 or 2027 implementation.

The borough reported its audit engagement letter for 2025 at a cost of $56,250. Councilors asked staff to seek other bids for audit services next year; staff said the cost increase is largely driven by GASB changes and the need for different auditor tasks. No formal procurement action was taken at the meeting; staff will return with vendor information, integration options and budget implications.

The borough said improving integration between permit, billing and financial systems could reduce ongoing staff time and improve accrual reporting over the long term, though initial investment would be required.