Numbered findings
18
Control and compliance issues in the report
Independent municipal audit · CY2023
18 control and compliance findings.
Here is what they mean.
Principal funds received clean New Jersey regulatory-basis opinions, but fixed assets could not be audited. Budget overruns, late closing, and missing payroll evidence remained significant accountability risks.
At a glance
Material weaknesses
3
The highest financial-reporting control category
Repeat findings
11
Issues reported in at least one earlier audit
Opinion scope
No fixed-assets opinion
Records were insufficient for the auditors to verify them
The opinion is not a pass/fail grade
Most regulatory statements received clean opinions—with an important exception.
Unmodified regulatory-basis opinions for principal funds and major programs; fixed-assets disclaimer; adverse GAAP-basis opinion.
Read the three opinion scopes
- New Jersey regulatory basis: Unmodified for principal funds.
- U.S. GAAP: Adverse because the mandated regulatory basis differs from GAAP.
- Fixed assets: Disclaimer because sufficient fixed-asset evidence was unavailable.
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.
2023-001 · material weakness
· Repeat since 2021
Overexpenditures and operating deficit
The City spent $10,639,749 above 2023 budget lines, overexpended $199,184 in the Federal and State Grants Fund, $506,627 in General Capital Fund, and $456,040 in Trust Fund, and incurred a $1,640,374 operating deficit.
2023-001 · material weakness
· Repeat since 2021
Overexpenditures and operating deficit
The City spent $10,639,749 above 2023 budget lines, overexpended $199,184 in the Federal and State Grants Fund, $506,627 in General Capital Fund, and $456,040 in Trust Fund, and incurred a $1,640,374 operating deficit.
Why it matters
Overexpenditures defer costs to future taxpayers and may constrain other appropriations under State caps.
Auditor recommendation
Budget sufficient amounts, verify available funds before orders, payments, transfers, and capital ordinances, and identify shortfalls early enough for transfers or emergency appropriations.
City response · unaudited
The City said it would improve budget monitoring and regular review, address prior deferred charges, coordinate Finance, Business Administration, the CFO, Management and Budget, and Internal Audit, and institute an encumbrance policy for temporary-budget contract awards.
Responsible area: Finance, Business Administration, Chief Financial Officer, Management and Budget, and Internal Audit
Official report pp. 251–252 · Includes a compliance issue
2023-002 · material weakness
· Repeat since 2022
Financial closing and reporting
The unaudited Annual Financial Statement was filed May 15, 2024 after the March 8 deadline, general ledgers were unavailable until June 18, and subsidiary reports needed material adjustments and top-side blanket entries because regular reconciliations and closing procedures were absent.
2023-002 · material weakness
· Repeat since 2022
Financial closing and reporting
The unaudited Annual Financial Statement was filed May 15, 2024 after the March 8 deadline, general ledgers were unavailable until June 18, and subsidiary reports needed material adjustments and top-side blanket entries because regular reconciliations and closing procedures were absent.
Why it matters
Reporting was late, the closing process was prolonged, public statements required material adjustments, and blanket entries weakened the permanent audit trail.
Auditor recommendation
Implement formal monthly closing and reporting procedures and reconcile general-ledger control accounts to subsidiary ledgers, interfund balances, and debt records.
City response · unaudited
The City said a CPA/RMA firm was helping the Comptroller and CFO draft procedures and train staff, a new accounting system was being implemented, second approvals would be documented, and the Comptroller had started a 27-day close.
Responsible area: Comptroller and Chief Financial Officer
Official report p. 253
2023-003 · material weakness
· Repeat since 2014
Fixed assets
The 2023 inventory's beginning and ending balances differed materially, requiring a $362,858,340 adjustment; vehicles purchased after 2019 appeared absent, and two of 25 sampled assets had been disposed before 2023 but remained listed.
2023-003 · material weakness
· Repeat since 2014
Fixed assets
The 2023 inventory's beginning and ending balances differed materially, requiring a $362,858,340 adjustment; vehicles purchased after 2019 appeared absent, and two of 25 sampled assets had been disposed before 2023 but remained listed.
Why it matters
The inventory was materially noncompliant and could not be relied upon, the necessary correction was unknown but presumed material, and auditors disclaimed an opinion on General Fixed Assets.
Auditor recommendation
Strengthen acquisition and disposal policies, update the inventory regularly, capture all additions and disposals, and reconcile it from prior balances.
City response · unaudited
The City said it hired a Business Administration analyst to work full time on fixed assets with Internal Audit.
Responsible area: Business Administration and Internal Audit
Official report p. 254 · Includes a compliance issue
2023-004 · significant deficiency
· Repeat since 2017
Bank reconciliations
Some bank reconciliations required material adjustments after the unaudited statement was filed, retained year-end reconciling items, or contained stale checks; four accounts needed later corrections despite most reconciliations being completed within two months.
2023-004 · significant deficiency
· Repeat since 2017
Bank reconciliations
Some bank reconciliations required material adjustments after the unaudited statement was filed, retained year-end reconciling items, or contained stale checks; four accounts needed later corrections despite most reconciliations being completed within two months.
Why it matters
Unresolved items can misstate cash, conceal posting errors or overpayments, and delay detection of erroneous or potentially fraudulent activity.
Auditor recommendation
Investigate and clear reconciling items promptly, coordinate for better bank detail, complete reconciliations within 30 days, and resolve stale checks by approved disposition.
City response · unaudited
The City said a CPA/RMA firm was helping refine the process, reconciliations were current through mid-July, and the Comptroller's manual documented step-by-step procedures.
Responsible area: Comptroller
Official report p. 255
2023-005 · significant deficiency
· Repeat since 2019
Payroll tax and withholding overpayments
The $3,100,000 receivable for 2019 payroll-tax overpayments was considered uncollectible and reclassified as a deferred charge. Testing also found one required Form 1099 not properly filed and two vendor files without enough information to determine filing requirements.
2023-005 · significant deficiency
· Repeat since 2019
Payroll tax and withholding overpayments
The $3,100,000 receivable for 2019 payroll-tax overpayments was considered uncollectible and reclassified as a deferred charge. Testing also found one required Form 1099 not properly filed and two vendor files without enough information to determine filing requirements.
Why it matters
The deferred charge must be raised by future taxation, and the City remained exposed to filing penalties, including a reported $588,500 New Jersey Department of Labor notice.
Auditor recommendation
Ensure timely and accurate payroll-tax, withholding, and Form 1099 processing, reconcile Payroll Clearing Trust reserves regularly, and obtain and review vendor information.
City response · unaudited
The City said it was pursuing recovery and preparing penalty appeals; its payroll/HR vendor was responsible for payroll taxes and wage-form filings.
Responsible area: Payroll and Finance
Official report p. 256 · Includes a compliance issue
2023-006 · significant deficiency
Payroll compliance scope limitations and payroll clearing
The City did not retain enough payroll documentation to test compliance and the Payroll Clearing Fund had material mispostings. Missing or inconsistent records included overtime approvals, timesheets, severance support, W-4s, direct-deposit authorizations, and other requested records.
2023-006 · significant deficiency
Payroll compliance scope limitations and payroll clearing
The City did not retain enough payroll documentation to test compliance and the Payroll Clearing Fund had material mispostings. Missing or inconsistent records included overtime approvals, timesheets, severance support, W-4s, direct-deposit authorizations, and other requested records.
Why it matters
Auditors could not determine material compliance with payroll laws, possible reportable noncompliance could remain undisclosed, and material Payroll Clearing Fund errors required adjustment and further reconciliation.
Auditor recommendation
Retain and provide payroll, pension, severance, overtime, time, W-4, and direct-deposit support; ensure paid hours are authorized and accurate; and reconcile Payroll Clearing Fund activity consistently.
City response · unaudited
The City said it was reviewing retention practices, training staff, strengthening payroll documentation controls, and reconciling the Payroll Clearing Fund, which it reported was reconciled through pay period 15 of 2024.
Responsible area: Payroll, Human Resources, and Accounts and Control
Official report pp. 257–258 · Includes a compliance issue
2023-007 · compliance finding
· Repeat since prior years
Funding of capital projects
The City was not in compliance with State capital-funding regulations: $13,041,080 of unfinanced costs for projects more than five years old remained, comprising $11,453,822 for general projects and $1,587,258 for school projects.
2023-007 · compliance finding
· Repeat since prior years
Funding of capital projects
The City was not in compliance with State capital-funding regulations: $13,041,080 of unfinanced costs for projects more than five years old remained, comprising $11,453,822 for general projects and $1,587,258 for school projects.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Fund remaining deferred charges over five years old through bonds or notes, if feasible, or by budget appropriation.
Official report p. 267 · Includes a compliance issue
2023-008 · control deficiency
· Repeat since 2022
Interfund balances
Large interfund balances remained at year end, including $50,458,518 owed from Current Fund to General Capital Fund, $5,993,386 from Current Fund to Federal and State Grant Fund, and $29,105,146 from Federal and State Grant Fund to General Capital Fund.
2023-008 · control deficiency
· Repeat since 2022
Interfund balances
Large interfund balances remained at year end, including $50,458,518 owed from Current Fund to General Capital Fund, $5,993,386 from Current Fund to Federal and State Grant Fund, and $29,105,146 from Federal and State Grant Fund to General Capital Fund.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Clear interfund balances by transfer before year end.
Official report p. 267
2023-009 · control deficiency
General department revenue reconciliation
Construction Code Office revenue exceeded the accounting system by $374,667—$285,493 of construction revenue and $89,174 of DCA fees—and the cause was unresolved. Departments did not routinely reconcile collections to deposits and accounting records and used inconsistent receipt formats.
2023-009 · control deficiency
General department revenue reconciliation
Construction Code Office revenue exceeded the accounting system by $374,667—$285,493 of construction revenue and $89,174 of DCA fees—and the cause was unresolved. Departments did not routinely reconcile collections to deposits and accounting records and used inconsistent receipt formats.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Resolve the Construction Code difference, require monthly department-to-bank-and-ledger reconciliations, and consider standardized collection records.
Official report p. 267
2023-010 · compliance finding
Quarterly DCA reports
The Construction Code Office did not provide proof that third- and fourth-quarter 2023 State Training Fee reports were submitted and had made no required fee payments through the second quarter of 2024.
2023-010 · compliance finding
Quarterly DCA reports
The Construction Code Office did not provide proof that third- and fourth-quarter 2023 State Training Fee reports were submitted and had made no required fee payments through the second quarter of 2024.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Submit quarterly State Training Fee reports and retain proof of submission and payment.
Official report p. 267 · Includes a compliance issue
2023-011 · control deficiency
Authorized bank signers
One of two primary financial institutions confirmed that two former employees still appeared as authorized signers on two accounts.
2023-011 · control deficiency
Authorized bank signers
One of two primary financial institutions confirmed that two former employees still appeared as authorized signers on two accounts.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Keep depository signers aligned with current City resolutions.
Official report p. 268
2023-012 · control deficiency
· Repeat since 2022
Tax deductions
Among 50 sampled senior-citizen and veteran deductions, one remained after ownership changed, 18 lacked veteran applications, and five lacked senior applications, although those five had post-tax-year income statements. Ten current-year additions tested after the Assessor cited flood loss all had applications.
2023-012 · control deficiency
· Repeat since 2022
Tax deductions
Among 50 sampled senior-citizen and veteran deductions, one remained after ownership changed, 18 lacked veteran applications, and five lacked senior applications, although those five had post-tax-year income statements. Ten current-year additions tested after the Assessor cited flood loss all had applications.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Remove ineligible deductions, update deductions after property sales, and refile initial applications lost to flood damage.
Official report p. 268
2023-013 · compliance finding
· Repeat since 2022
Tax exemption statements
Fourteen of 60 sampled exempt properties lacked both an initial statement and a current sworn further statement dated within three years.
2023-013 · compliance finding
· Repeat since 2022
Tax exemption statements
Fourteen of 60 sampled exempt properties lacked both an initial statement and a current sworn further statement dated within three years.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Obtain the statements required by N.J.S.A. 54:4-4.4, follow up on missing filings, and determine whether affected properties should remain exempt.
Official report p. 268 · Includes a compliance issue
2023-014 · compliance finding
· Repeat since 2022
Surety bond coverage
The City did not obtain the required surety bond for a Municipal Court judge appointed in October 2023; the prior-year bond finding concerned the Tax Collector.
2023-014 · compliance finding
· Repeat since 2022
Surety bond coverage
The City did not obtain the required surety bond for a Municipal Court judge appointed in October 2023; the prior-year bond finding concerned the Tax Collector.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Review bond coverage regularly, especially after personnel changes.
Official report p. 268 · Includes a compliance issue
2023-015 · control deficiency
Accumulated absences
Audit recalculation found discrepancies in year-end accrued hours; the City said it identified the cause and was working with its payroll service provider to correct the reporting.
2023-015 · control deficiency
Accumulated absences
Audit recalculation found discrepancies in year-end accrued hours; the City said it identified the cause and was working with its payroll service provider to correct the reporting.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Continue resolving causes and coordinate with the payroll provider to correct accumulated-absence reporting.
Official report p. 268
2023-016 · control deficiency
· Repeat since 2022
Health-benefit enrollment
Eight active-plan enrollees could not be verified to active payroll and should have been moved to retiree or COBRA groups, improved from 193 in 2022. Three retiree enrollees were found to have died in 2018, 2015, and 2011, and regular death-status checks were not in place by year end.
2023-016 · control deficiency
· Repeat since 2022
Health-benefit enrollment
Eight active-plan enrollees could not be verified to active payroll and should have been moved to retiree or COBRA groups, improved from 193 in 2022. Three retiree enrollees were found to have died in 2018, 2015, and 2011, and regular death-status checks were not in place by year end.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Regularly verify the eligibility of active and retiree health-benefit enrollees.
Official report p. 269
2023-017 · control deficiency
Parking Enforcement revenues
Four of 25 Parking Enforcement receipts could not be traced to bank deposits because about $237,000 collected by an electronic provider in 2023 was not remitted until April 2024; one of 25 sampled permit files was unavailable.
2023-017 · control deficiency
Parking Enforcement revenues
Four of 25 Parking Enforcement receipts could not be traced to bank deposits because about $237,000 collected by an electronic provider in 2023 was not remitted until April 2024; one of 25 sampled permit files was unavailable.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Identify unremitted provider collections sooner and retain all parking-permit files for audit.
Official report p. 269
2023-018 · control deficiency
Municipal Court management report
The December 2023 Municipal Court report showed substantial ticket and complaint backlogs, at least five open indictable complaints not referred to the County Prosecutor, and multiple tickets older than three years eligible for dismissal but still open.
2023-018 · control deficiency
Municipal Court management report
The December 2023 Municipal Court report showed substantial ticket and complaint backlogs, at least five open indictable complaints not referred to the County Prosecutor, and multiple tickets older than three years eligible for dismissal but still open.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Review the tickets, determine their disposition, and remove resolved items from the Automated Traffic System.
Official report p. 269
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.