18-10 Contract

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-