Resolution #13-34: Corrective Action Plan 2012 Audit

Date of Adoption: August 22, 2013

WHEREAS, the 2012 Annual Audit Report was delivered in August 2013 and regulations promulgated by the Local Fiscal Affairs Law, N.J.S.A. 40A:5 requires that the Chief Financial Officer prepare a Corrective Action Plan covering all findings and recommendations in the audit report; and

WHEREAS, N.J.S.A. 40A:5 further requires approval of the Corrective Action Plan within 60 days of audit receipt by the Vernon Township Municipal Utilities Authority;

NOW, THEREFORE, BE IT RESOLVED by the Vernon Township Municipal Utilities Authority that the Corrective Action Plan for the 2012 Annual Audit Report prepared by the Executive Director and the Township of Vernon CFO and attached hereto as “Appendix A” be approved.

Appendix “A”–Corrective Action Plan for the 2012 Audit Report

Description: The authority does not have formal, written procedures regarding purchasing and financial reporting.

Recommendation: That the authority develops formal written procedures over purchasing, financial reporting, and internal controls.

Explanation/Corrective Action: The authority began operations in 2012 and written procedures had not been developed as of the audit date. Management will be working on developing purchasing and financial reporting procedures.

Implementation Date: Fiscal year 2013.