Fy 07 Cap

TOWNSHIP OF EWING COUNTY OF MERCER, NEW JERSEY CURRENT YEAR FINDINGS AND RECOMMENDATIONS 1. Finding The Township was not able to provide documentation supporting the bidding process or one vendor. Also, in 3 of 9 bids selected for audit testing, we were unable to locate the certificate of availability of funds. For one vendor with purchases during the year in excess of the bid threshold, there was no documentation that a bid was solicited Recommendation The Township should consistently enforce compliance with the Local Public Contracts Laws. Response The Township will consistently enforce compliance with the Local Public Contracts Laws. 2. Finding Current fund appropriation over-expenditures totaled $122,939.87. Recommendation Expenditures should be monitored throughout the year in order to avoid over-expenditures. Response Expenditures will be monitored throughout the year in order to avoid over-expenditures

1

TOWNSHIP OF EWING COUNTY OF MERCER, NEW JERSEY CURRENT YEAR FINDINGS AND RECOMMENDATIONS (CONTINUED) 3. Finding The fiscal year 2008 budget does not include a full appropriation for the appropriate amounts of obligations to the Ewing Lawrence Sewerage Authority Recommendation The budget should allocate sufficient funds for the obligation to the Ewing Lawrence Sewerage Authority Response The fiscal year 2008 does provide for sufficient funds for the obligation to the Ewing Lawrence Sewerage Authority. 4. Finding The Township does not comply with Technical Accounting Directive #85-2, “Accounting for Governmental Fixed Assets” Recommendation The Township should maintain fixed assets accounting and reporting system for general fixed assets in accordance with the above mentioned regulation. Response The Township has purchased a fixed asset inventory and tagging system in order to track fixed assets.

2

TOWNSHIP OF EWING COUNTY OF MERCER, NEW JERSEY CURRENT YEAR FINDINGS AND RECOMMENDATIONS (CONTINUED)

5. Finding The Municipal Court’s cash disbursements are reviewed and approved by the court administrator, who also prepares bank reconciliations. Also tickets eligible for destruction were pulled but not disposed of as required Recommendation An individual who is independent from both cash receipts and cash disbursement functions should prepare bank reconciliations. It is also necessary to have an accounting procedures manual prepared, in order to facilitate a better transition in the event an employee leaves. Also, tickets eligible for destruction should be disposed of in a timely and proper manner, as required. Response Greater segregation of duties will be implemented in order to carry out the responsibilities of the court office. Eligible tickets for destruction will be disposed in a timely manner. 6. Finding We recognize that the Township’s finance department had personnel changes during the course of the year 2007. However there were significant delays and difficulties in closing the financial records at year end Recommendation We recommend that the Township’s accounting records be maintained and reconciled on a timely basis throughout the fiscal year in order to improve control over financial reporting and to facilitate a more timely year end closing process Response The records have been maintained and will be available in a timelier basis.

3

TOWNSHIP OF EWING COUNTY OF MERCER, NEW JERSEY CURRENT YEAR FINDINGS AND RECOMMENDATIONS (CONTINUED)

7. Finding Dog licenses are distributed out of sequence. The total licenses issued during the year do not equal the replacement licenses plus the amount of paid licenses. These numbers are not reconciled to the monthly reports. There was one license issued with no fee that was not for a service dog and was not indicated as a replacement tag. Also, pre-numbered receipts are not being used to record the collection of license fees paid, and employees have the ability to edit the amounts collected in the computer system. Recommendation Utilize computer software or keep manual records. Perform reconciliation between yearly and monthly reports. Keep records and written explanations related to any gaps in license sequence. For no-fee licenses issued, properly indicate the type of license in the system. Do not issue licenses with no fee unless they are for service dogs or replacement tags. Also, use pre-numbered receipts to record the collection of license fees paid. The ability of employees to edit the amounts collected in the computer system should not be allowed. Response The Clerk will work with the software developer to ensure that licenses are issued automatically in sequence instead of requiring the user to enter the license number manually prior to June 30, 2008. 8. Finding In Construction Office, monies received are not being deposited within 48 hours, as is required. Recommendation All monies received should be deposited within the required 48 hours Response The Construction Office will deposit monies within 48 hours.

4

TOWNSHIP OF EWING COUNTY OF MERCER, NEW JERSEY CURRENT YEAR FINDINGS AND RECOMMENDATIONS (CONTINUED) 9. Finding Monies received by the Health Department are not being deposited within 48 hours, as required by statute. Recommendation All monies received should be deposited within the required 48 hours. Response The Health Department will deposit monies within 48 hours. 10. Finding A majority of the resolutions in the minutes were missing resolution numbers. Recommendation All resolution numbers should be indicated in the minutes Response All resolution numbers will be indicated in the minutes.

5