AJ has made available a
Synopsis of the Transitional Fiscal Year 2011 audit report.
These are its RECOMMENDATIONS:
These are its RECOMMENDATIONS:
Purchasing:
*That all City purchases be
made through the Purchasing Agent. (Vacant most of 2012)**
*That the encumbrance
accounting system required by the Division of Local Government services be adequately
maintained.
*That open purchase orders be
reviewed periodically and cancelled if no longer valid.
Tax
Collector:
That all tax receipts be
deposited within 48 hours of receipt.
*That a detailed analysis of
tax sale premiums and outside lien redemption balances at year end be maintained.
*That third party lien
redemptions be remitted to the outside lien holders in a timely manner.
That the Tax Collector’s
monthly reports be filed with the Finance Office on a timely basis.
That
the detailed billing ledger be reconciled with the actual tax requirements.
That
all tax stubs be available for audit.
Finance:
*That the Current Fund General
Ledger be accurately maintained.
*That the City obtain the
necessary actuarial information required to report the long-term liabilities related
to its Other Post-Employment Benefits (OPEB) Programs.
*That grants receivable and
appropriated grant reserves from prior year be reviewed and cleared of
Record where appropriate; the
grant appropriation ledger should then be reviewed for proper disposition.
*That
all grants be properly appropriated in the budget prior to the commitment or
expenditure of funds.
*That
Dedication by Rider approval be requested from the State of New Jersey for
Trust reserves and that Trust reserves not eligible for rider approval be
cancelled of record.
*That interfund balances be
cleared of record.
*That unsupported balance sheet
items in the sewer utility fund be cancelled of record.
*That efforts be made to
collect delinquent Payment in Lieu of Taxes (PILOT) receivables.
That all cancellations approved
by the City Council be reflected on the financial records of the City.
*That all the County portion of
PILOT payments be remitted to the County of Union.
Payroll:
That the City’s use of payroll
processing and disbursement services be brought into compliance with the
requirements of N.J.A.C. 5:30-17.
Departments:
*That monthly animal control
State reports be reconciled with license fees collected.
That
all City Departments maintain accurate records of monies collected.~~
That receipts collected by the
City’s Departments be reconciled with the amounts recorded by the
Finance Office.
*Unresolved
prior year recommendations
~~
Could this refer to Recreation among others?
** My comment
Noteworthy are the unresolved
deviations from acceptable accounting practice that were carryovers from FY2010
and most from many prior years. Interim FY 2011 was when we had that rare individual a
CFO in situ; what can we expect this year ?
How many were changed in 2012 when we had only
a part time CFO ? Since all Certificates
of available funds are supposed to be signed by the CFO were instead had his
name initialed by an employee who I have been told is the spouse of another
City employee; one wonders what actual input the acting CFO had in controlling
city funds, or if a forensic audit would reveal some major irregularities?
Will we have to wait until past the June 2013 Primary Mayor election before we have answers if any? We know the Council will do no more than pass its annual resolution stating that they have read the report. That is all that is required, no one is forced to do corrective action or even prove that they have read or understand the audit.
Don’t hold your breath waiting for my status Health Care report which is going through birth pains. However, I will assure you that it will be on the Internet long before there is a resolution of the above deficiencies.
Meanwhile; if you click on the links I suggested yesterday; you will note that I wrote a very comprehensive and edifying series of blogs in 2009/10. If I may say so most are still worth reading.