Conference/Public Meeting Agenda/Documents — Packet

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Audit findings address areas needing improvement. Ignoring these findings devalues the While the Township is in compliance process; therefore, municipalities should correct noted deficiencies. Have all audit with item 1, information on item 2 is 15 N/A findings from the 2010 audit been 1) identified in the corrective action plan and 2) not yet available because the 2011 audit addressed such that they are not repeated in the 2011 audit? If the answer is no, please has been delayed due to a transition of list the repeat findings in the comments section. CFO's in late 2011. The CFO should prepare both the annual financial statement and annual debt statement. Excessive auditor assistance on these documents could create a perception that the auditor is not truly independent of the client in auditing the client’s financial statements. At an absolute minimum, each CFO should prepare audit-ready financial records including books of original entry, general ledgers, subsidiary ledgers and other computer reports that accurately analyze and reflect the municipality's financial position. These records should have sufficient detail for an accountant with sufficient knowledge of New CFO does complete the AFS and 16 N/A Jersey's municipal accounting system to extract the information necessary in preparing presents the financial records in a the annual financial and debt statements. This requires that all financial transactions complete and audit ready condition. (both cash and non- cash) be posted in the general ledger and that all general ledger accounts be supported by subsidiary ledgers, reports, reconciliations or are otherwise analyzed. If your CFO does not prepare the annual financial statement or annual debt

accounts be supported by subsidiary ledgers, reports, reconciliations or are otherwise analyzed. If your CFO does not prepare the annual financial statement or annual debt statement, and does not present the financial records in a complete and audit-ready condition, are you retaining outside assistance to do so from an individual or entity separate from your municipality's audit firm? The CFO should prepare a municipality's annual budget. If your CFO does not prepare the 17 N/A municipality's annual budget, are you retaining outside assistance to do so from an CFO does prepare the municipal budget individual or entity separate from your municipality's audit firm? Grant programs can create a significant burden on a municipality's cash flow if program expenses are either not timely reimbursed or are charged to other operating accounts instead of to the grant. Are all grant revenues reviewed at least quarterly to determine 18 Yes that all program expenses have 1) been filed for reimbursement and 2) have been properly charged to the grant, with follow up communication to grantor agencies in instances where payments are delayed? Budget Preparation and Presentation - BP