Numbered findings
18
Control and compliance issues in the report
Independent municipal audit · CY2011
18 control and compliance findings.
Here is what they mean.
This report covers CY2011 and the 2010 transition year. The regulatory opinion was qualified for a missing retiree-health-benefit valuation, while major-program compliance was unqualified and no material weaknesses were identified.
At a glance
Material weaknesses
0
The highest financial-reporting control category
Repeat findings
5
Issues reported in at least one earlier audit
Opinion scope
See report opinion
Opinion scope varies by report year and accounting basis
The opinion is not a pass/fail grade
Most regulatory statements received clean opinions—with an important exception.
Qualified regulatory-basis opinion for the missing OPEB valuation; unmodified major-program compliance opinions; adverse GAAP-basis opinion.
Read the three opinion scopes
- New Jersey regulatory basis: Qualified for the missing OPEB valuation.
- U.S. GAAP: Adverse due to both the regulatory framework and missing OPEB valuation.
- Fixed assets: None
Every numbered finding
What needs to change
“Material weakness” is an audit-control classification, not an allegation of fraud. Open a finding for the condition, why it matters, the auditor's recommendation, repeat history, and the City's separately labeled response.
FS 11-01 · qualified opinion matter
Outdated OPEB actuarial valuation
The City's most recent actuarial evaluation of other post-employment benefits covered July 1, 2008 through June 30, 2009 rather than satisfying the biennial valuation requirement.
FS 11-01 · qualified opinion matter
Outdated OPEB actuarial valuation
The City's most recent actuarial evaluation of other post-employment benefits covered July 1, 2008 through June 30, 2009 rather than satisfying the biennial valuation requirement.
Why it matters
The missing current valuation resulted in a qualification of the independent auditor's report.
Auditor recommendation
Have biennial actuarial valuations of the post-employment benefits program performed in accordance with GASB and Division requirements.
Official report pp. 265–266 · Includes a compliance issue
FS 11-02 · noncompliance
· Repeat since FY2010
Aged unfunded capital costs
Unfinanced costs for projects more than five years old totaled $25,963,265 for general and school projects and $9,901,985 for water projects.
FS 11-02 · noncompliance
· Repeat since FY2010
Aged unfunded capital costs
Unfinanced costs for projects more than five years old totaled $25,963,265 for general and school projects and $9,901,985 for water projects.
Why it matters
The costs created cash-flow concerns and left the City out of compliance with State capital-project funding requirements.
Auditor recommendation
Follow up on aged unfunded deferred charges, identify completed projects, and fund completed projects.
Official report pp. 266–267 · Includes a compliance issue
SA11-01 · significant deficiency
CDBG ledger-to-IDIS reconciliation
CDBG receivables, reserves, and available balances in the general ledger were not reconciled to the IDIS system.
SA11-01 · significant deficiency
CDBG ledger-to-IDIS reconciliation
CDBG receivables, reserves, and available balances in the general ledger were not reconciled to the IDIS system.
Why it matters
CDBG receivables and reserves could not be validated to HUD's IDIS records.
Auditor recommendation
Adopt annual CDBG closeout procedures that close temporary accounts, retain year-end IDIS reports, and reconcile the general ledger to IDIS.
City response · unaudited
The City will incorporate procedures to close all CDBG general-ledger accounts and reconcile them to the appropriate IDIS reports.
Responsible area: City of Jersey City
Official report pp. 268–269 · Includes a compliance issue
1 · control deficiency
· Repeat since TY2010
PILOT billing under financial agreements
Not all PILOTs were billed according to their financial agreements, although the audit noted fewer exceptions after new review procedures began.
1 · control deficiency
· Repeat since TY2010
PILOT billing under financial agreements
Not all PILOTs were billed according to their financial agreements, although the audit noted fewer exceptions after new review procedures began.
Why it matters
PILOT billings could be inaccurate or incomplete.
Auditor recommendation
Continue the process implemented to review PILOT agreements for proper billing and maintain the related controls.
Official report p. 282
2 · control deficiency
Unprepared tax subsidiary ledgers
Year-end closeout did not timely produce taxes-receivable and tax-overpayment subsidiary ledgers, so they were not reconciled to general-ledger control accounts.
2 · control deficiency
Unprepared tax subsidiary ledgers
Year-end closeout did not timely produce taxes-receivable and tax-overpayment subsidiary ledgers, so they were not reconciled to general-ledger control accounts.
Why it matters
Financial reporting reliability was reduced because subsidiary balances were not reconciled.
Auditor recommendation
Prepare the tax subsidiary ledgers during annual closeout and reconcile them to the general-ledger control accounts.
Official report p. 282
3 · control deficiency
Overestimated State school-building aid
The adopted budget anticipated $8,298,847 of State school-building aid, $1,670,393 more than received, causing the school-tax addition to be under-levied by the same amount.
3 · control deficiency
Overestimated State school-building aid
The adopted budget anticipated $8,298,847 of State school-building aid, $1,670,393 more than received, causing the school-tax addition to be under-levied by the same amount.
Why it matters
The amount raised by taxes for support of the municipal budget was understated by $1,670,393.
Auditor recommendation
Confirm State aid amounts before adopting the annual budget.
Official report p. 282
4 · control deficiency
Dormant grant receivables and reserves
The State and Federal Grants Fund carried $55,137,058 of receivables and $48,459,324 of appropriation reserves, including balances more than ten years old, and the capital fund had $2,059,900 of dormant grant receivables.
4 · control deficiency
Dormant grant receivables and reserves
The State and Federal Grants Fund carried $55,137,058 of receivables and $48,459,324 of appropriation reserves, including balances more than ten years old, and the capital fund had $2,059,900 of dormant grant receivables.
Why it matters
Aged balances might be uncollectible, charged to the wrong grant year, expendable, or refundable to grantors.
Auditor recommendation
Investigate dormant grant receivables and reserves for collectability, correct grant-year classification, expenditure eligibility, or return to grantors.
Official report pp. 282–283
5 · control deficiency
Private-duty administrative fee transfers
The City had no policy for transferring private-duty administrative fees from the Trust Fund to the Current Fund.
5 · control deficiency
Private-duty administrative fee transfers
The City had no policy for transferring private-duty administrative fees from the Trust Fund to the Current Fund.
Why it matters
Current Fund revenue was not recognized regularly or anticipated in the annual budget.
Auditor recommendation
Transfer private-duty administrative fees annually and anticipate them as annual budget revenue.
Official report p. 283
6 · control deficiency
Unavailable payroll authorization records
Testing of employee deductions and W-4 authorizations could not be completed because supporting records were archived, stored, or otherwise unavailable.
6 · control deficiency
Unavailable payroll authorization records
Testing of employee deductions and W-4 authorizations could not be completed because supporting records were archived, stored, or otherwise unavailable.
Why it matters
Auditors could not verify that sampled employee deductions and W-4 forms were properly authorized.
Auditor recommendation
Retain W-4 forms and employee-deduction support permanently in personnel files.
Official report p. 283
7 · control deficiency
Disposed assets retained in inventory
Several items disposed during 2011 remained on the year-end fixed-asset inventory.
7 · control deficiency
Disposed assets retained in inventory
Several items disposed during 2011 remained on the year-end fixed-asset inventory.
Why it matters
The fixed-asset inventory included assets the City no longer held.
Auditor recommendation
Reinforce fixed-asset disposal policies with department personnel and ensure the procedures are followed.
Official report p. 284
8 · control deficiency
Untagged vehicles and mobile equipment
Some vehicles and mobile equipment lacked inventory tags and could not be validated against the physical inventory listing.
8 · control deficiency
Untagged vehicles and mobile equipment
Some vehicles and mobile equipment lacked inventory tags and could not be validated against the physical inventory listing.
Why it matters
The City could not trace all mobile assets to its inventory.
Auditor recommendation
Make every physical asset traceable to the inventory by requiring tags or recording other identifiers such as vehicle identification numbers.
Official report p. 284
9 · control deficiency
Recreation cash-receipt controls
Recreation cash-receipt applications and records were unavailable, some fees lacked governing-body approval, and fiscal-officer controls were not used, leaving no reliable system to account for all cash collected.
9 · control deficiency
Recreation cash-receipt controls
Recreation cash-receipt applications and records were unavailable, some fees lacked governing-body approval, and fiscal-officer controls were not used, leaving no reliable system to account for all cash collected.
Why it matters
The auditors could not rely on the amount of Recreation cash collected.
Auditor recommendation
Institute stronger controls over cash collected and on hand and follow the controls implemented by the fiscal officer.
Official report p. 284
10 · noncompliance
· Repeat since TY2010
Untimely departmental deposits
The Recreation Department and HEDC Planning Division did not deposit receipts within the 48 hours required by N.J.S.A. 40A:5-15.
10 · noncompliance
· Repeat since TY2010
Untimely departmental deposits
The Recreation Department and HEDC Planning Division did not deposit receipts within the 48 hours required by N.J.S.A. 40A:5-15.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Deposit receipts within 48 hours as required by the Local Fiscal Affairs Law.
Official report p. 284 · Includes a compliance issue
11 · control deficiency
Inactive Assessment Trust Fund
The City's Assessment Trust Fund had been inactive since 2004.
11 · control deficiency
Inactive Assessment Trust Fund
The City's Assessment Trust Fund had been inactive since 2004.
Why it matters
A $36,093 fund balance remained outside the Current Fund operating budget.
Auditor recommendation
Close the Assessment Trust Fund and anticipate its $36,093 fund balance as Current Fund operating-budget revenue.
Official report p. 285
12 · control deficiency
· Repeat since TY2010
Excess court ticket inventories
Two officers' ticket inventories exceeded the court maximum because of input errors and additional procedures needed to remove obsolete and recalled tickets.
12 · control deficiency
· Repeat since TY2010
Excess court ticket inventories
Two officers' ticket inventories exceeded the court maximum because of input errors and additional procedures needed to remove obsolete and recalled tickets.
Why it matters
Individual ticket inventories were inaccurate and exceeded the court's maximum.
Auditor recommendation
Review individual ticket inventories and ensure assignments do not exceed the court's maximum.
Official report p. 285
13 · control deficiency
Missing bail recognizance forms
The Court could not locate 11 percent of the original bail recognizance forms selected for testing.
13 · control deficiency
Missing bail recognizance forms
The Court could not locate 11 percent of the original bail recognizance forms selected for testing.
Why it matters
The audit sample could not be fully supported by original records.
Auditor recommendation
Review procedures so bail recognizance forms are filed accurately and on time.
Official report p. 285
14 · control deficiency
Parking-ticket payment count error
Tickets were counted incorrectly during a disbursement to the Parking Authority, producing an incorrect payment; the dollar error was not material.
14 · control deficiency
Parking-ticket payment count error
Tickets were counted incorrectly during a disbursement to the Parking Authority, producing an incorrect payment; the dollar error was not material.
Why it matters
The Parking Authority received an incorrect, though immaterial, payment.
Auditor recommendation
Recount the monthly total of parking tickets collected to ensure accuracy and completeness.
Official report p. 285
15 · noncompliance
· Repeat since TY2010
Insufficient court surety bond coverage
Court surety bond coverage did not meet N.J.A.C. 5:30-8.4(a).
15 · noncompliance
· Repeat since TY2010
Insufficient court surety bond coverage
Court surety bond coverage did not meet N.J.A.C. 5:30-8.4(a).
Why it matters
The report does not state a separate effect.
Auditor recommendation
Review projected court revenue annually and obtain the minimum surety bond coverage required for municipal courts.
Official report p. 285 · Includes a compliance issue
Historical audits
Choose a report year
CY is a calendar year, FY is the older June-ending fiscal year, and TY2010 is the transition period. Comparative CY2022 also represents CY2021.
Official PDF archive
Supporting source evidence, not the primary reading experience. Independent audits only; budgets and Annual Financial Statements are separate.
| Report | Years covered | Source |
|---|---|---|
| CY2025 | 2025, 2024 | Open official PDF |
| CY2024 | 2024, 2023 | Open official PDF |
| CY2023 | 2023, 2022 | Open official PDF |
| CY2022 |
2022, 2021
No separate CY2021 report was published; this comparative audit covers both 2022 and 2021.
|
Open official PDF |
| CY2020 | 2020, 2019 | Open official PDF |
| CY2019 | 2019, 2018 | Open official PDF |
| CY2018 | 2018, 2017 | Open official PDF |
| CY2017 | 2017, 2016 | Open official PDF |
| CY2016 | 2016, 2015 | Open official PDF |
| CY2015 | 2015, 2014 | Open official PDF |
| CY2014 | 2014, 2013 | Open official PDF |
| CY2013 | 2013, 2012 | Open official PDF |
| CY2012 | 2012, 2011 | Open official PDF |
| CY2011 |
2011, 2010
This report covers CY2011 and the 2010 transition year.
|
Open official PDF |
| TY2010 |
2010
Transition-year report for the period ending December 31, 2010; it also compares the fiscal year ending June 30, 2010.
|
Open official PDF |
| FY2010 | 2010 | Open official PDF |
| FY2009 | 2009 | Open official PDF |
| FY2008 | 2008 | Open official PDF |
| FY2007 | 2007 | Open official PDF |
| FY2006 | 2006 | Open official PDF |
Project Solomon is independent of the City of Jersey City. Structured audit facts are manually source-checked; City management responses are unaudited.