AUDIT REPORT+HEALTH CARE UPDATE.

AJ has made available a Synopsis of the Transitional Fiscal Year 2011 audit report.
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*That open purchase orders be reviewed periodically and cancelled if no longer valid.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.