Auditor General Timothy L. DeFoor announced the release of audits of several municipal and police pension plans in Elk, McKean and Potter counties, most of which were in the clear.

However, problems were noted in audits for Galeton Borough in Potter County and for Highland Township in Elk County.

There were no findings with the Galeton Borough non-uniformed pension plan, but the police pension plan raised red flags. While there were no findings in the plan itself, how the plan is funded was a concern.

DeFoor noted a funded ratio of 48.9% as of the most recent data available. Municipal pension plans should be funded at 100%.

“We encourage borough officials to monitor the funding of the police pension plan to ensure its long-term financial stability,” the auditor general said.

For Elk County, in Highland Township’s non-uniformed pension plan, the auditors’ found that state aid was not deposited when it was received. There was a delay of eight months, when it should be deposited within 30 days of receipt. It was noted that township officials were unaware of the requirement to deposit it within 30 days, and agreed to do so in the future.

For McKean County, there were no significant findings in the audits for Foster Township’s police and non-uniformed pension plans.

“Our audits make sure state pension aid is used as required by law, which helps to reduce financial burdens on local taxpayers,” DeFoor said. “Nearly a quarter of the pension plans in Pennsylvania are in some state of distress. It is essential that our communities plan to make their pension payments on time to support our workers who take care of us.”

State aid for municipal pension plans is generated by a 2 percent tax on fire and casualty insurance policies sold in Pennsylvania by out-of-state companies. In 2024, the Department of the Auditor General distributed a total of $404.73 million in aid to 1,461 municipalities and regional departments to support pension plans covering police officers, paid firefighters and non-uniformed employees.

The department is required by law to audit municipal pension plans and volunteer fire relief associations that receive state aid from the department; liquid fuels tax usage by municipalities; various county offices and numerous other state government entities.