123-25 Township of West Orange - 12-31-2023 CAP.pdf

Department: Office of the Comptroller Respondent: John Ditinyak, Director of Finance Responsible Employee(s): John Ditinyak, Director of Finance; Finding Number: 2023-9 (Page 161) 1. Condition: There are interfund balances open at December 31, 2023 on the various balance sheets of the Township. As a general rule, all interfund balances should be closed out before the end of the year. Transactions invariably occur in fund, which results in a corresponding entry to be made in another fund, thus creating interfund balances. 2. Auditor’s Recommendation: That all interfund be liquidated by December 31st. 3. Township Response and Corrective Action: The Finance Department will liquidate all interfund balances prior to year-end 2025. If cash flow needs impede the Township’s ability to liquidate any or all interfund balances, a memorandum will be provided to the auditor prior to the issuance of the audited financial statements. 4. Implementation Date: Year-end 2025