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; All Department Heads Finding Number: 2023-8 (Page 161) 1. Condition: The revenue collections of the Municipal Court were not in agreement with the records of the Finance Department. Revenue of $318,012.63 was turned over, but only $208,276.35 was recorded in the Current Fund General Ledger. The difference of $109,736.28 could not be identified in the ledger. The DCA Training Fees for new construction and rehabilitation collected by the Construction Department was not in agreement with Finance records. There was a difference of $4,593.00 compared to departmental records. 2. Auditor’s Recommendation: That all revenue received from outside departments be properly identified and recorded. 3. Township Response and Corrective Action: The Township’s method of recording daily cash receipts is through a software solution called Community Pass. On a daily basis, the previous’ days Community Pass cash activity is uploaded to the general ledger software, Cloud Munidex. This process inherently limits differences between the subsidiary ledger (Community Pass) and the general ledger (Cloud Munidex). The Finance Department is going to evaluate all of the mapping codes that are embedded in each Community Pass revenue type. The mapping codes determine what general ledger each Community Pass revenue uploads to in Munidex. Once the coding has been checked and Community Pass maps to the correct General Ledger accounts, we will implement a monthly departmental sign-off process. The Assistant Comptroller will run a monthly cash receipt report in Munidex and have the Department’s compare it to their own Munidex records. Any discrepancies will need to be investigated before completing the monthly reconciliation. 4. Implementation Date: The project will commence in May 2025 and will be completed in phases. The expectation is that all the of the departments will be completed by year-end 2025.