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.