Auditor makes several recommendations

Some changes already in effect; others on the way Vernon — The township continues to fine tune its financial dealings. Results of the 2008 audit from Bud Jones of Nisovoiccia & Co. were made public at last Thursday’s Town Council meeting. It turns out that Vernon went above and beyond with its audit, not only doing the standard 2008 audit as required by law, but also doing a cash disbursement audit — which examines the cash flow processes of the township — and a closeout audit, which is required whenever a CFO leaves a municipality. These extra steps were seen as a positive move by the auditor, who commented, “You have room for improvement. The two additional reports you did were steps in the right direction,” said Jones. “I think it is important to devote time and financial resources to this area, even during these difficult times.” But in the end, he still had some issues to bring up. One that elicited the most comment was the issue of signature stamps, which can be used to imprint a signature on checks. These stamps, which are very rarely used, according to township Manager Melinda Carlton, are all kept together in one locked cabinet, which is a security risk that the members of the town council were not pleased by. Councilperson Valerie Seufert asked that Carlton address that particular problem the next day if possible, and Carlton agreed to do so. Recommendations Another recommendation is that a central purchasing program be implemented, to streamline the buying process, control spending and allow for more cooperative purchasing. Jones also emphasized the need to have the duties of the employees be made clearer as they relate to recording and treasury functions. For example, checks cut by the accounts payable clerks are then sent up to department heads for signatures and returned to the accounts payable clerks before they are sent. This system creates an opportunity for problems. Two other recommendations concern the police department. According to the report, a detailed cash ledger should be maintained by the police department and the Clerk’s office for the fees collected by the department, and that the ledgers be reconciled on a monthly basis. The auditors also reminded the police department that all funds collected should be turned over to the finance office on a daily basis and that the funds should be deposited within 48 hours, which they found hadn’t been done consistently. A corrective action plan will be presented to the township at its Nov. 30 meeting, but Jones noted that in many areas, changes have already been made by the new township CFO, Bill Zuckerman. He noted that a purchasing policy had already been established and that the manager had been pressuring for better job descriptions and a redefinition of duties since earlier in the year. A lag time The fact that some of the issues brought up by the audit were already resolved works in Vernon’s favor, because the original audit was due to the state in May of this year. Nisivoccia & Co. had presented a preliminary audit to the township in April, but the township didn’t respond to it until October. According to Carlton, this delay was due to the township’s search for a permanent CFO during that time. As a result, they put off responding to the audit until the new CFO could review it. Now that Zuckerman has come on board as manager, the audit was reviewed and confirmed with minor changes.