18-10 Contract

TOWNSHIP OF WEST ORANGE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED DECEMBER 31, 2008 General The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards present the activity of all federal and state financial assistance programs of the Township of West Orange. The Township of West Orange is defined in Note A to the Township’s financial statements. All federal financial assistance received directly from federal agencies, as well as federal expenditures of financial assistance passed through other government agencies is included on the Schedule of Federal Financial Awards. Basis of Accounting The accompanying Schedules of Expenditures of Federal and State Awards are presented using the basis of accounting followed by the Township, which is described in Note A, Summary of Significant Accounting Policies, to the Township’s financial statements. The information in the Schedule of Expenditures of Federal and State Awards is presented in accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”. Relationship to Federal and State Financial Reports Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports. -31-

TOWNSHIP OF WEST ORANGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2008 Section I - Summary of Auditors’ Results 1. Type of auditors’ report issued: Unqualified (Except for Qualification ‘As Due to Statutory Basis of Accounting) 2. Interrial control over financial reporting: Material weakness(es) identified? CI yes ix] no Significant Deficiencies identified that are not considered to be material weakness(es)? CJ yes none reported 3. Noncompliance material to financial statements noted? LJyes [Jno 4. Internal control over major programs: Material weakness(es) identified? CJ yes eal no Significant Deficiencies identified that are not considered to be material weakness(es)? | yes i] none reported 5. Type of auditor’s report issued on compliance for major programs: Unqualified 6. Any audit findings disclosed that are required to to be reported in accordance with Section 510(a) of OMB Circular A-133 and New Jersey OMB Circular 04-047 [__lyes no 7. Identification of Major Programs: Name of Federal Program CFDA # « Lower Income Housing Assistance Program (Section 8) 14.871 Name of State Program GMIS Numbers ¢ Public Assistance 7500-150-158010-60 e 1984 NJ Transportation Trust — Municipal Aid by Formula 6320-480-078-6320-645-9376936 © Office of Information Technology Enhanced. E-911 Equipment Grant 07-E-07-330 8. Dollar threshold for determining Types A and B programs: $300,000 9. Auditee qualified as low-risk auditee? i] yes im no Section I - Financial Statement Findings: None Noted Section III — Major Federal and State Award Findings and Questioned Costs: None Noted Section IV — Prior Year Audit Findings and Questioned Costs: None Noted Section V — Corrective Action Plan Not Applicable -32-

TOWNSHIP OF WEST ORANGE GENERAL COMMENTS Scope of Audit The audit of the financial statements of the Township of West Orange, County of Essex, New Jersey, as required by the Division of Local Government Services, covered the financial transactions of the Treasurer, Tax Collector, and the activities of the Township and the records of the various outside departments. The audit did not and could not determine the character of services rendered for which payment had been made or for which reserves had been set up, nor could it determine the character, proper price or quantity of materials supplied for which claims had been passed. These details were necessarily covered by the intemal review and control before approval of such claims by the governing body. CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED FOR N.JS. 40A: 11-4 NJS. 40A: 11-4 states “Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded only resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law.....” The governing body of the Township has the responsibility of determining whether the expenditures in any category will exceed the bid threshold within the fiscal year. The bid threshold is $17,500 or up to $25,000 if the purchasing agent is qualified pursuant to subsection b. of section 9 of P.L.1971, c.198 (c.40A: 11-9). As of July 1, 2006, the bid thresholds increased to $21,000 and $29,000, respectively. Where question arises as to whether any contract or agreement might result in violation of the statute, the Township Counsel’s opinion should be sought before a commitment is made. The minutes indicate that bids were requested by public advertising. The minutes indicate that resolutions were adopted and advertised authorizing the awarding of contracts or agreements for “Professional Services” per N.J.S. 40A: 11-5. The system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed,

tegories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut violations existed. Our examination of expenditures did not reveal any individual payments, contracts or agreements in excess of $17,500 or $21,000 “for the performance of any work or the furnishing or hiring of any materials or supplies,” other than those where bids had been previously sought by public advertisement or where a resolution had been previously adopted under the provisions of N.J.S. 40A: 11-6. ~33-

TOWNSHIP OF WEST ORANGE Bonded Officials The following officials were bonded during the year ended December 31, 2008 through policies issued by Western Surety Company: Name Title Amount Edrie A. Daniels Municipal Court Adm. $ 75,000 Joseph Antonucci Tax Collector 550,000 Edward J. Coleman. Chief Financial Officer 50,000 Harry L. Starrett Municipal Judge 75,000 Margaret E. Padovano Municipal Judge 75,000 Anita Lanfrank Sr. Data Entry 15,000 JoAnn Behar Township Clerk 5,000 The Public Employees’ Blanket Bond is carried to cover all other officials not specifically covered by a separate bond. Collection of Interest on Delinquent Taxes and Assessments The statute provides the method for authorizing interest and the maximum rate to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent. The governing body adopted the following resolution authorizing interest to be charged on delinquent taxes: “Not to exceed 8% per annum on the first $1,500 of the delinquency and 18% on any amount in excess of $1,500.” “The Township Council by resolution instructed the Tax Collector to permit a ten (10) day grace period in the collection of taxes before a charge of interest is made.” “Be it further resolved that an additional 6% penalty be charged for delinquencies in excess of $10,000 remaining unpaid at the end of the calendar year in accordance with the amended provisions of N.J.S.A. 54:4-67.” ° It appears from the examination of the Collector’s records that interest was collected in accordance with the foregoing resolution. Delinquent Taxes and Tax Title Liens The delinquent taxes at December 31, 2008 consist of unpaid taxes for the year 2008. It is quite evident, that a determined effort has been made to enforce the payment of delinquent taxes. The last tax sale was held on January 21, 2009 and was completed. Inspection of tax sale certificates on file revealed that all tax sale certificates were available for audit. -34-

TOWNSHIP OF WEST ORANGE COMMENTS AND RECOMMENDATIONS YEAR ENDED DECEMBER 31, 2008

TOWNSHIP OF WEST ORANGE COMMENTS AND RECOMMENDATIONS DECEMBER 31, 2008 CAPITAL FUND: Finding: Green Acres matching grant receivable on Ordinance #1992-04 of $103,270.02 has been carried for a number of years. Recommendation: This receivable should be reviewed in order to determine its collectibility. Finding: There is a receivable associated with the 2005 NJDEA loan. The loan is being amortized with interest, yet the receivable has not changed. Recommendation: The receivable of $2,447,091.00 should be reviewed to determine its collectibility. -35-

FINANCIAL ASSURANCES ‘This is to certify that the applicant agency, __ Township of West Orange has been informed and understands that: a. There are no start-up monies or cash advances available to Essex Count y Division on Aging provider agencies/grantees b.Reimbursement is made upon submission and approval of quarterly* expenditure reports. Township of Additionally, West Orange gives its assurance that the agency has sufficient (agency name) funds to cover operational expenses pending reimbursement, 01/07/10 Date “Home Friend programs are reimbursed monthly as stipulated by funding source regulation.

ALAL LA, KUULALLUN, AND WELFARE REGULATIONS UNDER TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 Township of West Orange (hereinafter called (Name of Subgrantze or Secondary Recipient) the “Subgrantee) HEREBY AGREES THAT it wall comply with Title VI of the Civil Rights Act of 19 (P.L. 88-352) and all requirements imposed by or pursuant to the Regulations of the Deparment of Health, Education and Welfare (45 CFR Part: 80) issued pursuant to that title, to the end that, in accordance with Title VI of that Act and the Regulation, no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in. be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Subgrantee received Federal financial assistance from __ Essex County DOA (Name of Grantor) 64 “GRANTOR”; and HEREBY GIVES ASSURANCE THAT it will immediately take and measure necessary to effectuate this agre¢ment. . If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the Subgrantee by the Grantor, this assurance shall obligate the Subgrantee, or in the case of any transfer of such property, and transferee, for the period during which the real property or structure is used for a purpose of which the Federal financial assistance extended or for another purpose involving the provisions of similar services or benefits, If any personal property is so provided, this assurance shall obligate the Sub-grantee for the period during which it retains ownership or possession of the property. In all other cases, this assurance shall obligate the Subgrantees for the period during which the Federal financial assistance is ‘extended to it by the Grantor. THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts, property, discounts or other Federal financial assistance extended after the date hereof to the Subgrantee by the Grantor, including installment payments after such date on account of applicants for Federal financial assistance with were approved before such date. The Subgrantee recognizes and agrees that such Federal financial assistance will be extended in reliance on the representation and AOA Form 441 (to be completed by applicant for any grant from the State agency

tee recognizes and agrees that such Federal financial assistance will be extended in reliance on the representation and AOA Form 441 (to be completed by applicant for any grant from the State agency designated to implement the Older Americans Act. Where provision of facilities is involved, HEW Form 441 is to be executed.) Agreements made in the assurance, and that the Grantor or the United States or both shall have the nights to seek judicial enforcement of this assurance. This assurance is binding on the Subgrantee, its successors, transferees, and assignees, and the person or persons whose signatures appears below are authorized to sign this assurance on behalf of the Subgranies. 01/07/10 Township of West Orange Date : Joseph A. Fonzino comparable Township of West Orange 6 Main Street West Orane, NJ 07052 Director/Health Officer Recipient's Mailing Address Titie