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 Government Auditing Standards and with audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
Criteria or specific requirement:
For sound financial reporting the appropriate internal control procedures for requisitions of purchase orders should be followed to ensure compliance with public contract law.
The Township was inconsistent with following internal control procedures in place for obtaining quotes and obtaining the approval of requisitions for purchase orders before the receipt of a good or service.
Management oversight at the applicable department level.
Effect or potential effect:
Weakening of internal control over financial reporting.
It is recommended that all requisitions for purchase orders are approved by the appropriate parties and all quotes are received at the time of requisitioning process and that no order is placed for goods or services until a Purchase Order is printed and approved.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective action plan.
139