Drumore Township has received a clean bill of health on its liquid-fuels finances, according to an audit by the state Auditor General's Office in Harrisburg.

Township supervisors announced the news at the municipality's May 6 meeting. The audit covered 2008.

"We did not identify any significant deficiencies or material weaknesses … the results of our tests disclosed no issues of noncompliance," according to a statement authorized by Auditor General Jack Wagner. The statement accompanied the audit.

According to the report, in 2008 the township spent $25,000 of state liquid fuels funds on major equipment purchases, more than $24,000 on winter maintenance needs and more than $64,000 on maintenance and repair of roads and bridges.

The fund, which at the end of 2008 had a balance of $169,566.96, received the bulk of its funds (about $120,000) from the state. Other income came from interest on investments or one-time payments from state Department of Transportation programs.

The report does, however, mention a sticking point from earlier audits: During the state's 2000-02 audit, the auditor general's office recommended that Drumore reimburse the state $779,844 for questionable costs during the tenure of former township supervisor Harold Long.

Long pleaded guilty in 2006 to one count of honest-services mail fraud for illegally subcontracting $133,514 worth of roadwork to his company, Long's Asphalt Inc., from 2000 to 2002.

In 2006, the audit report states, PennDOT and Drumore reached an agreement in which the municipality would pay $196,141.13 over four years.

The report states that Drumore had reimbursed the state $100,000 through 2008, leaving a debt of $96,141.13.

As for the audit from 2003-2005, the report recommends that Drumore reimburse the state $255,032.20, although the report says PennDOT "has not yet determined" if repayment is required.

Calls to the township's lawyers at the Lancaster law firm of Blakinger, Byler & Thomas to discuss the matter were not returned.

Overall, the audit's finding that the township was in compliance for 2008 is good news for Drumore, which weathered tough financial times in previous years.

In addition to the case involving Long, the township experienced a loss of funds over several years due to thefts by another township official.

Former township secretary Anna B. Morris pleaded guilty in 2008 to stealing more than $300,000 in public money between 2001 and 2006.