The Borough of Lansford did not follow proper procedures last year when liquid fuels money was used to purchase more than $9,999 in materials for a street paving project, a state audit showed. As a result, the borough may be penalized $15,000.

According to guidelines for using the funds, competitive bids must be solicited for any project costing more than $10,000.

The Auditor General’s report revealed Lansford spent $14,541.85 to pave Edgemont Road, East Front Street and a portion of Ridge Street, calling it “piecemealing,” without putting the cost of the materials out to bid.

The money will have to go back into the liquid fuels account and Lansford will have to pay the expenses from its general fund, officials said.