TOWNSHIP OF JACKSON SCHEDULE OF FINDINGS & QUESTIONED COSTS (continued): For the Fiscal Year Ended December 31, 2013

Section II – Financial Statement Findings

This section identifies the significant deficiencies, material weaknesses and instances of noncompliance related to the basic financial statements that are required to be reported in accordance with Chapter 5.18 of Government Auditing Standards.

Finding 2013-01:

Criteria or Specific Requirement:

In accordance with N.J.S.A. 40A:4-57, no officer, board, body or commission shall, during any fiscal year, expend any money (except to pay notes, bonds or interest thereon), incur any liability, or enter into any contract which by its terms involves the expenditure of money for any purpose for which no appropriation is provided, or in excess of the amount appropriated for such purpose.

Condition:

There were over-expenditures of Current Fund appropriation reserve line items as of December 31, 2013.

Context:

The over-expenditures of Current Fund appropriation reserve line items as of December 31, 2013 were $10,064.

Effect:

The Township is not in compliance with N.J.SA 40A:4-57. In addition, a budget appropriation must be provided in the next succeeding budget for any such item appearing on the balance sheet of the appropriate fund.

Cause:

Client oversight.

Recommendation:

That the Township, prior to the encumbering of purchase orders, verify that sufficient funds are available in the applicable budget appropriation line item in order to prevent the over-expenditure of funds.

View of Responsible Officials and Planned Corrective Action:

The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Section III – Federal Financial Assistance Findings & Questioned Costs

This section identifies audit findings required to be reported by section .510(a) of Circular A-133.

No Current Year Findings

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