TOWNSHIP OF JACKSON SCHEDULE OF FINDINGS & QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2019
Section II – Financial Statement Findings (continued)
Finding 2019-002:
Criteria of Specific Requirement:
P.L. 2011 c. 78 requires that local units must contribute to their employee benefits according to statutory calculations and those calculations must be updated based on the cost of the chosen plan and the employee's compensation.
Condition:
The Township did not properly calculate employee contributions for health benefits for all employees for the year ended December 31, 2019.
Cause:
The Township did not recalculate and adjust the withholdings after changes were made during the year to employee health benefit plan coverage or changes in salary.
Effect or Potential Effect:
All employees did not have the proper amount withheld from their compensation.
Recommendation:
That the Township should implement controls to ensure employee withholding rates are properly recalculated as changes in coverage or compensation occur.
View of Responsible Officials and Corrective Action Plan:
The responsible officials agree with this finding and will address the matter as part of their corrective action plan.
140