Millersville Borough Manager Rebecca told council on Aug. 26 that a Pennsylvania Auditor General review of the borough’s 2023–24 liquid fuels transactions found money was not moved into the borough’s liquid fuels account when received, and the borough must restore about $193,000 to that account by March 2026 to remain eligible for future liquid fuels payments.

The finding matters because liquid fuels funding — state gasoline-tax distributions intended for road upkeep — is a recurring revenue stream for the borough. Manager Rebecca said the borough will use a three‑year repayment schedule offered by state officials to move the funds from the general fund back into the liquid fuels account.

Rebecca said the underlying problem appears to have occurred during a period of staff turnover between December 2022 and February 2023, when the liquid fuels receipts apparently remained in the general‑operating account and were used to pay paving invoices instead of being deposited to the liquid fuels account. That sequence, she said, violates current PennDOT guidance and produced the audit finding. The borough is not being fined, she said, but must reimburse the liquid fuels account.

“We need to pay ourselves back,” Rebecca told council, adding that the state is offering a three‑year option to spread the repayment. She also warned that “there is no appeal option.”

Council members asked about safeguards to prevent a recurrence; Rebecca said staff have added processes and follow‑up to reduce the risk that money will be left in the general fund across fiscal years, and that the borough is working with PennDOT to change how the receipts are deposited so funds go directly into the liquid fuels account.

No formal council vote was required or taken on the audit matter during the meeting; council was informed of the finding and the manager’s plan to accept the state’s three‑year repayment option. Staff said the borough expects to remit at least the first installment to the liquid fuels account in the near term so the borough will remain eligible for its liquid fuels allocation next year.

The borough also reported that other audit findings have been or are being corrected, including the practice of routing liquid fuels receipts through the general‑operating account instead of into the liquid fuels account directly, which the borough is addressing with PennDOT.

Council will receive follow‑up from staff on repayment scheduling and internal controls as the borough implements the required steps.