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Montgomery Township audit returns a clean opinion; board ratifies tax settlement and moves $1.5M to capital reserves
Summary
An independent audit gave Montgomery Township an unmodified (clean) opinion for 2025. The board ratified a $12,337 real-estate tax-appeal settlement for 801 Bethlehem Pike and approved transferring $1,495,225 of the 2025 general fund surplus to the capital reserve fund.
Matt Weed, an audit manager with Maillie LLP, told the Montgomery Township Board of Supervisors on June 22 that the township’s 2025 financial statements received an unmodified (clean) opinion, meaning the audit “is free of material misstatement” and was performed in accordance with US GAAP. He highlighted several notable figures: a net pension asset of about $2 million (up roughly $1 million from 2024), a pension minimum municipal obligation of $396,000, an OPEB liability of $3.8 million, and total revenue of $24.1 million in 2025, down from $26 million in 2024 largely because American Rescue Plan Act funds were recognized in 2024.
Weed also summarized the township’s capital-asset position, saying the cost basis is about $170 million with current-year depreciation of $2.6 million and roughly 86% of useful life remaining for its assets. He noted long-term debt declined by about $700,000 in 2025 to an ending balance near $20 million and described fund-balance trends across governmental and recreation funds.
Blaine Bergey, the township’s director of finance, told the board the general fund rose from $9.3 million to $10.8 million in 2025 and recommended transferring surplus funds to capital reserves. The board approved a transfer of $1,495,225 to the capital reserve fund in line with township policy to retain 20–25% of operating reserves.
On a separate finance item, Bergey said the board was asked to ratify a stipulated settlement for a 2024 tax appeal involving the property at 801 Bethlehem Pike, owned by Real Estate Plus Airport Square LLC. Under the settlement with the affected school district, the taxpayer will owe an additional $12,337 for the 2024–25 tax years, with assessment levels returning to current value for 2026. The board authorized the township solicitor to execute the settlement documents.
During board questions, a supervisor asked about the audit letter’s reference to the risk of management override of internal controls. Weed answered that noting that risk is standard in planning audit procedures and that Maillie conducts internal-control walkthroughs to test checks and balances. Township manager Carolyn McCreary said she and staff met with the Delaware Valley Regional Finance Authority and noted the township maintained a AAA rating.
What happens next: the audit presentation required no formal board action beyond discussion; the transfer to capital reserve and the tax-settlement ratification were approved at the meeting.
