Resolution #20-26: Corrective Action Plan for 2019 Audit Report

Date of Adoption: June 18, 2020

WHEREAS, the 2019 Annual Audit Report was delivered in June 2020 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 Board of Commissioners;

NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Vernon Township Municipal Utilities Authority that the Corrective Action Plan for the 2019 Annual Audit Report prepared by the Chief Financial Officer and attached hereto as “Appendix A” be approved.

APPENDIX “A”
VERNON TOWNSHIP
MUNICIPAL UTILITY AUTHORITY

Corrective Action Plan for the 2019 Audit Report

1. Findings: Accounts receivable subsidiary ledger was not in agreement with the Authority’s general ledger balance.

Recommendation: That accounts receivable subsidiary records be reconciled to the general ledger account on a timely basis.

Corrective Action: Proper internal controls require that subsidiary records be reconciled to the general ledger account balance on a timely basis. The conversion to Edmunds in the middle of the year created difficulties in reconciling data. Reconciliation procedures will be reviewed to ensure that subsidiary and general ledger accounts are in agreement.

Implementation Date: January 2020

2. Findings: Minutes of various meetings of the Authority’s Commissioners were not available for audit.

Recommendation: That all Authority minutes be available for audit.

Corrective Action: Minutes of the Board are required to be available for audit due to a lack of personnel to transcribe and post minutes as a result of resignations and employee turnover. Procedures will be implemented to ensure that minutes are current and available for audit.

Implementation Date: April 2020

3. Findings: Documentation for professional services contracts awarded by the Authority was not available for audit.

Recommendation: That procedures be implemented to ensure that documentation supporting compliance with the provisions of the Local Public Contracts Law and the Local Unit Pay-to-Play Law relating to the award of professional services contracts be available for audit.

Corrective Action: The Authority is required to comply with the provisions of the New Jersey Local Public Contracts Law (N.J.S.A. 40A:l 1-1 et. seq.) and the New Jersey Local Unit Pay-to-Play Law (N.J.S.A. 19:44A-20.4, et.seq.). While these provisions were complied with, the documentation could not be located as a direct result of employee resignations and turnover. Procedures will be implemented to ensure that documentation supporting compliance with the provisions of the Local Public Contracts Law and the Local Unit Pay-to-Play Law relating to the award of professional services contracts be available for audit.

Implementation Date: April 2020