Numbered findings
18
Control and compliance issues in the report
Independent municipal audit · CY2024
18 control and compliance findings.
Here is what they mean.
Principal funds were fairly presented under New Jersey regulatory accounting, but fixed-asset records were unauditable. Recurring financial-control problems continued, and missing Federal Equitable Sharing records caused an adverse program-compliance opinion.
At a glance
Material weaknesses
4
The highest financial-reporting control category
Repeat findings
10
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; disclaimer for fixed assets; adverse GAAP-basis and Federal Equitable Sharing compliance opinions.
Read the three opinion scopes
- New Jersey regulatory basis: Unmodified for principal funds.
- U.S. GAAP: Adverse because New Jersey's required regulatory basis differs from GAAP.
- Fixed assets: Disclaimer because the asset inventory was not auditable.
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.
2024-001 · material weakness
· Repeat since 2021
Overexpenditures
The City spent $11,701,836 above current-year appropriations for employee health insurance and other lines and $241,045 above available employee-health appropriation reserves because invoices were not timely encumbered and the beginning reserve balance was not properly adjusted.
2024-001 · material weakness
· Repeat since 2021
Overexpenditures
The City spent $11,701,836 above current-year appropriations for employee health insurance and other lines and $241,045 above available employee-health appropriation reserves because invoices were not timely encumbered and the beginning reserve balance was not properly adjusted.
Why it matters
The overexpenditures become deferred charges for future budgets and may constrain other appropriations under State caps.
Auditor recommendation
Budget sufficient line-item amounts, encumber costs promptly, and identify shortfalls early enough for transfers or emergency appropriations.
City response · unaudited
The City planned formal encumbrance and monthly monitoring controls, reserve analyses, timely transfers, staff training and review, and Edmunds system alerts.
Responsible area: John Mercer, Chief Financial Officer, and Silendra Baijnauth, Director of Management and Budget
Official report pp. 259–260 · Includes a compliance issue
2024-002 · material weakness
· Repeat since 2022
Financial closing and reporting
Subsidiary-ledger opening balances often disagreed with prior audited balances, material audit entries were needed in several funds, four prior capital ordinances were missing from the subsidiary ledger, and Payroll Clearing Trust had a material debit from misclassified pension activity.
2024-002 · material weakness
· Repeat since 2022
Financial closing and reporting
Subsidiary-ledger opening balances often disagreed with prior audited balances, material audit entries were needed in several funds, four prior capital ordinances were missing from the subsidiary ledger, and Payroll Clearing Trust had a material debit from misclassified pension activity.
Why it matters
The weaknesses increased overexpenditure risk, caused unavailable or misallocated reserves, required many material post-year-end adjustments, and delayed closing and required reporting.
Auditor recommendation
Adopt formal monthly procedures that reconcile general-ledger control accounts to subsidiary budget, revenue, capital, grant, and payroll records.
City response · unaudited
The City planned monthly reconciliation checklists, a closing calendar with assigned duties, corrected opening balances, staff training, supervisory review, and possible Edmunds automation.
Responsible area: John Mercer, Chief Financial Officer, and Walkidia Staten, Director of Accounts and Control
Official report pp. 261–262
2024-003 · material weakness
· Repeat since 2014
Fixed assets
The inventory was materially misstated and could not be reliably corrected: descriptions were too vague for physical inspection, two property lists may duplicate assets, no disposals were reported despite resolutions approving sale of 343 vehicles, and $854,871,645 of adjustments were required to agree reports to the supplied inventories.
2024-003 · material weakness
· Repeat since 2014
Fixed assets
The inventory was materially misstated and could not be reliably corrected: descriptions were too vague for physical inspection, two property lists may duplicate assets, no disposals were reported despite resolutions approving sale of 343 vehicles, and $854,871,645 of adjustments were required to agree reports to the supplied inventories.
Why it matters
The finding header calls this an adverse opinion on General Fixed Assets, while its Effect paragraph says a disclaimer was issued because the necessary adjustments could not be identified; both statements are retained for manual review.
Auditor recommendation
Strengthen acquisition and disposal controls, improve descriptions, update the inventory regularly, capture every addition and disposal, and reconcile from prior balances.
City response · unaudited
The City planned a full physical inventory, standardized descriptions and tagging, formal disposal and transfer records, system improvements, quarterly reconciliations, training, Internal Audit coordination, and a third-party inventory specialist.
Responsible area: John Mercer, Chief Financial Officer; Raquel Tosado, Director of Purchasing and Central Services; Internal Audit; and Finance
Official report pp. 263–264 · Includes a compliance issue
2024-004 · material weakness
Federal Equitable Sharing documentation
The City did not provide proof of its Equitable Sharing Agreement and Certification, records of program-funded tangible or real property, or inventory logs. Expenditure support was provided, but other compliance testing was limited.
2024-004 · material weakness
Federal Equitable Sharing documentation
The City did not provide proof of its Equitable Sharing Agreement and Certification, records of program-funded tangible or real property, or inventory logs. Expenditure support was provided, but other compliance testing was limited.
Why it matters
The City did not demonstrate compliance with Federal Equitable Sharing equipment, property-management, and reporting requirements, contributing to the report's adverse program-compliance opinion.
Auditor recommendation
Centralize required records, assign a compliance officer or grants administrator, and periodically review documentation requirements under the program guide and Uniform Guidance.
City response · unaudited
The City planned centralized records, assigned compliance oversight, monthly reviews, and annual training; Finance restricted further Public Safety encumbrances until the finding and reporting requirements are addressed.
Responsible area: Director of Public Safety or program manager, with Management and Budget and Grant Administration and Compliance oversight
Official report pp. 265–266 · Includes a compliance issue
2024-005 · control deficiency
· Repeat since 2023
Interfund balances
Interfund balances remained at year end, including $29,105,146 owed from the Federal and State Grant Fund to the General Capital Fund.
2024-005 · control deficiency
· Repeat since 2023
Interfund balances
Interfund balances remained at year end, including $29,105,146 owed from the Federal and State Grant Fund to the 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. 273
2024-006 · compliance finding
· Repeat since 2023
Form 1099 filing
Testing of 60 vendors found four required Forms 1099 were not filed and one file lacked enough vendor information to determine whether filing was required.
2024-006 · compliance finding
· Repeat since 2023
Form 1099 filing
Testing of 60 vendors found four required Forms 1099 were not filed and one file lacked enough vendor information to determine whether filing was required.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Obtain and review vendor information and file every Form 1099 required by the Internal Revenue Code.
Official report p. 273 · Includes a compliance issue
2024-007 · control deficiency
· Repeat since 2023
Severance payout support
The City did not provide supporting documentation for nine of 25 sampled severance payouts.
2024-007 · control deficiency
· Repeat since 2023
Severance payout support
The City did not provide supporting documentation for nine of 25 sampled severance payouts.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Retain and provide sufficient documentation for every severance payout.
Official report p. 273
2024-008 · control deficiency
· Repeat since 2023
Accumulated absences
Five of 25 sampled accumulated-absence liabilities were inaccurate.
2024-008 · control deficiency
· Repeat since 2023
Accumulated absences
Five of 25 sampled accumulated-absence liabilities were inaccurate.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Report each employee's accumulated-absence liability according to the applicable contract.
Official report p. 273
2024-009 · compliance finding
· Repeat since 2023
Surety bond coverage
The City did not obtain required surety bonds for three Municipal Court judges appointed in October 2023, October 2024, and December 2024.
2024-009 · compliance finding
· Repeat since 2023
Surety bond coverage
The City did not obtain required surety bonds for three Municipal Court judges appointed in October 2023, October 2024, and December 2024.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Review bond coverage regularly, especially after personnel changes.
Official report p. 273 · Includes a compliance issue
2024-010 · control deficiency
Department deposits
Twenty-five sampled Housing Preservation receipts and five sampled Parking Enforcement receipts could not be traced to bank deposits because detailed audit-trail documentation was not provided.
2024-010 · control deficiency
Department deposits
Twenty-five sampled Housing Preservation receipts and five sampled Parking Enforcement receipts could not be traced to bank deposits because detailed audit-trail documentation was not provided.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Maintain documentation detailed enough to verify that each receipt was deposited.
Official report p. 274
2024-011 · control deficiency
· Repeat since 2023
Tax deduction applications
Seventeen of 40 sampled senior-citizen and veteran deductions lacked the veteran application.
2024-011 · control deficiency
· Repeat since 2023
Tax deduction applications
Seventeen of 40 sampled senior-citizen and veteran deductions lacked the veteran application.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Retain veteran-deduction applications while the property receives the deduction.
Official report p. 274
2024-012 · compliance finding
· Repeat since 2023
Tax exemption statements
Thirteen of 60 sampled exempt properties lacked both an initial statement and a current sworn further statement dated within three years.
2024-012 · compliance finding
· Repeat since 2023
Tax exemption statements
Thirteen 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. 274 · Includes a compliance issue
2024-013 · compliance finding
Trust reserves
The City created Trust Fund reserves for the Mass Transit Access Parking Tax, Lead Hazard Control Assistance Fund, Towing Operations, and Affordable Housing Trust Funds without adopting the Dedication by Rider resolutions required by N.J.S.A. 40A:4-39.
2024-013 · compliance finding
Trust reserves
The City created Trust Fund reserves for the Mass Transit Access Parking Tax, Lead Hazard Control Assistance Fund, Towing Operations, and Affordable Housing Trust Funds without adopting the Dedication by Rider resolutions required by N.J.S.A. 40A:4-39.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Adopt Dedication by Rider resolutions for all newly created Trust Fund reserves.
Official report p. 274 · Includes a compliance issue
2024-014 · compliance finding
Procurement resolutions
Among 25 vendors paid above the bid threshold, one was paid after its approval resolution was withdrawn and one relied on a resolution never approved by Council. Ten additional state-contract or cooperative window contracts above $17,500 lacked award resolutions.
2024-014 · compliance finding
Procurement resolutions
Among 25 vendors paid above the bid threshold, one was paid after its approval resolution was withdrawn and one relied on a resolution never approved by Council. Ten additional state-contract or cooperative window contracts above $17,500 lacked award resolutions.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Award state-contract and cooperative-purchasing contracts above $17,500 only by adopted resolution and do not authorize contracts under withdrawn or unapproved resolutions.
Official report pp. 274–275 · Includes a compliance issue
2024-015 · compliance finding
Sinking fund payments
The City missed a mandatory $15,000 sinking-fund payment on its Series 2016B Water Refunding Bonds. The report says this was the first in annual payments beginning September 1, 2024 and ending in 2023, an internally impossible date range, while also saying payments total $2,190,000 due September 1, 2033.
2024-015 · compliance finding
Sinking fund payments
The City missed a mandatory $15,000 sinking-fund payment on its Series 2016B Water Refunding Bonds. The report says this was the first in annual payments beginning September 1, 2024 and ending in 2023, an internally impossible date range, while also saying payments total $2,190,000 due September 1, 2033.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Remit all mandatory sinking-fund payments due on the Series 2016B Water Refunding Bonds.
Official report p. 275 · Includes a compliance issue
2024-016 · control deficiency
Improvement authorization charges
Support for $7,964,732 of capital-improvement reimbursements to Current Fund lacked enough detail to verify capital purpose, including missing payroll certifications and project details; $383,500 of Parks maintenance charges were disallowed and reversed.
2024-016 · control deficiency
Improvement authorization charges
Support for $7,964,732 of capital-improvement reimbursements to Current Fund lacked enough detail to verify capital purpose, including missing payroll certifications and project details; $383,500 of Parks maintenance charges were disallowed and reversed.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Retain support demonstrating that reimbursements from capital improvements to Current Fund operations are allowable under the corresponding capital ordinance.
Official report p. 275
2024-017 · compliance finding
Grant matching funds
The City did not adopt the change-of-title-or-text appropriation resolutions required for Chapter 159 grant matching funds.
2024-017 · compliance finding
Grant matching funds
The City did not adopt the change-of-title-or-text appropriation resolutions required for Chapter 159 grant matching funds.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Adopt N.J.S.A. 40A:4-85 resolutions whenever matching funds are required for Chapter 159 grants added to the budget.
Official report p. 275 · Includes a compliance issue
2024-018 · compliance finding
OPEB valuation
The City did not obtain an actuarial valuation of its other postemployment health-benefit plan as required by GASB Statement No. 75 and Division of Local Government Services note-disclosure provisions.
2024-018 · compliance finding
OPEB valuation
The City did not obtain an actuarial valuation of its other postemployment health-benefit plan as required by GASB Statement No. 75 and Division of Local Government Services note-disclosure provisions.
Why it matters
The report does not state a separate effect.
Auditor recommendation
Obtain the required OPEB actuarial valuation.
Official report p. 275 · Includes a compliance issue
Historical audits
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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.
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| CY2020 | 2020, 2019 | Open official PDF |
| CY2019 | 2019, 2018 | Open official PDF |
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| 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.
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| TY2010 |
2010
Transition-year report for the period ending December 31, 2010; it also compares the fiscal year ending June 30, 2010.
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| 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 |
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