Council accepts Brown Plus audit; borough posts full 2024 financial report

Brown Plus principal Scott Henry presented highlights of Lititz Borough's 2024 financial statements and informed council the firm issued an unmodified opinion, indicating the statements are materially correct under generally accepted accounting principles.

Henry said governmental consolidated capital assets rose by about $200,000, noncurrent liabilities declined roughly $780,000 because of debt payoff and better pension investment returns, and the borough ended 2024 with an $8.8 million fund balance on the modified-accrual basis. He called the general-fund unassigned fund balance roughly $3.5 million, about 42% of total fund balance, and noted completed and ongoing capital projects including water upgrades, culvert work and sewer lining.

Council members asked about pension and other-post-employment-benefits (OPEB) funding; the auditor noted police and non-uniform pension net liabilities decreased in 2024 because of investment returns and normal contributions, while the OPEB liability rose slightly due to actuarial assumptions and health-cost trends. A resident asked about full-accrual and modified-accrual net changes; Henry provided a change-in-net-position summary: a governmental activities deficit of about $25,000 on a full-accrual basis, and a $141,000 increase on the general-fund side for the year.

Council voted to accept the audit and financial statements as presented by Brown Plus and to make the full 86-page report publicly available online and in the newspaper this week, staff said. Finance committee members said departments are now submitting cost-saving ideas and staff will return in July with options for capital and operational savings.