Borough Manager Rebecca told Millersville Borough Council that a state audit found liquid fuels money was not moved into the borough’s designated liquid fuels account between Dec. 2022 and Feb. 2023, and the borough must replenish the account to continue receiving state road funding. “It is a 193,000 and some change that will pay over 3 years from the general operating fund to Pligot,” Rebecca said.

The finding, which appeared in the Auditor General’s report covering 2023–24 and was discussed with PennDOT staff, does not result in a fine, Rebecca said, but the borough must restore the funds to comply with current liquid fuels guidance. The manager said the borough is negotiating a three-year repayment option so the transfers can be spread over time.

The issue arose after liquid fuels receipts were kept in the borough’s general operating account and later used for a paving project. When staff later reimbursed liquid fuels from the general fund, the state determined the account had not accrued interest in the liquid fuels account as guidance requires, creating the audit finding.

Rebecca said borough staff has discussed the matter with PennDOT and that the agency initially was surprised but concluded the earlier handling did not follow today’s guidance. She said there is no option to appeal the finding and that the reimbursement must occur between now and March 2026 for the borough to receive next year’s liquid fuels distribution.

Rebecca told council the other audit findings in the report have either been fixed or are being corrected, and staff is working to ensure liquid fuels receipts are posted directly to the dedicated account going forward. She described process adjustments intended to reduce the risk of a repeat, including clearer procedures and follow-up for project payments that straddle calendar years.

Council members asked clarifying questions about payment timing and controls; Rebecca said the borough typically pays large paving projects by the end of the summer and that the repayment plan will mitigate immediate budget pressure. No formal council action was required at the meeting.

The manager recommended the three-year payback as the practical option because the funds are the borough’s own operating money and spreading the transfers will lessen short-term budget impact.