Spring City Borough Police Pension Plan – Chester County – Reduced Period Engagement – Period Ended December 31, 2025

An audit was conducted on the Spring City Borough Police Pension Plan to assess compliance with the Municipal Pension Plan Funding Standard and Recovery Act. The audit aimed to verify if corrective actions from previous reports were implemented and if the pension plan adhered to relevant state laws and regulations. For the audit period from January 1, 2024, to December 31, 2025, it was determined that state aid and employer contributions were mostly handled correctly, and no employee contributions were necessary. The 2025 actuarial valuation report was timely submitted. However, a significant finding showed that the borough failed to correctly calculate and pay the minimum municipal obligation (MMO) for 2024, underestimating payroll by $139,378, resulting in an unpaid MMO balance of $18,837. Consequently, this unpaid balance must be reconciled with applicable interest. Borough officials were made aware of this issue, and their cooperation was appreciated during the audit process. This is an automated summary. Please rely on the contents included in the released audit report.