18-10 Contract

McENERNEY, BRADY & COMPANY, LLC Certified Public Accountants * A Limited Liability Company John L. Ezyske, CPA, RMA Francis M. McEnerney, CPA, RMA John F. Lauria, RMA Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards The Honorable Mayor and Members of the Township Committee Township of West Orange West Orange, New Jersey We have audited the financial statements of the Township of West Orange, New Jersey as of and for the year ended December 31, 2008, and have issued our report thereon dated May 22, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. As described in Note A, the financial statements were prepared in conformity with the accounting practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, that demonstrates compliance with the modified accrual basis, with certain exceptions, and the budget laws of New Jersey, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Township of West Orange’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Entity’s internal control over financial reporting. ‘A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects

forming their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is a more than a Temote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control. -23-