N.J. S. 40A:11-4 states "Every contract or agreement for the performance of any work or the furnishing or hiring of any materials or supplies, the cost of the contract price whereof is to be paid with or out of public funds, not included within the terms of Section 3 of this act, shall be made or awarded only by the governing body of the contracting institution after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate of the amount set forth in, or the amount calculated by the Governor pursuant to Section 3 of P.L. 1971 except by contract or agreement." For the year ended July 1, 1999 through April 16, 2000, this amount was $12,800. For the period April 17, 2000 through June 30, 2000, this amount was $17,500.

The governing body of the municipality has the responsibility of determining whether the expenditures in any category will exceed $12,800 from July 1, 1999 through April 16, 2000 and $17,500 from April 17, 2000 through June 30, 2000. Where a question arises as to whether any contract or agreement might result in a 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 advertisement for the following items:

o Purchase of passenger vehicle for the Construction office
o Paving, milling and overlay of various Township roads
o Repairing of automatic cooling system in municipal building
o Purchase of crawler loader and dump truck
o Stabilization of Shabakunk Creek
o Lighting of Moody Park
o Leasing of Police vehicles
o Composting
o Purchase of police car video units
o Cleaning of the Municipal building
o Purchase of road patch material
o Purchase of kennel cages

It is also noted that as an alternative to public advertising, the Township uses State contracts to purchase certain approved items.

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.

In as much as 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, however, to determine whether any obvious violations existed, as indicated in the comments and recommendations - current year.

Any interpretation as to possible violation of the N.J.S. 40A:11-4 and N.J.A.C. 5:30-14 would be in the province of the municipal solicitor.

Delinquent Taxes and Tax Title Liens

The last tax sale was held on April 25, 2000 and was complete.

TOWNSHIP OF EWING
COUNTY OF MERCER, NEW JERSEY
PRIOR YEAR
FINDINGS AND RECOMMENDATIONS SUMMARY

All findings and recommendations from June 30, 1999 have been resolved.

TOWNSHIP OF EWING

COUNTY OF MERCER, NEW JERSEY

CURRENT YEAR

FINDINGS AND RECOMMENDATIONS

Organization and Record Keeping

Finding:
The clerk's office is not in compliance with the 48?hour rule as prescribed by New Jersey statutes.

Recommendation:
Deposits should be made in accordance with the statutes.

Finding:
The clerk's office does not account for all dog tags at the beginning of the year before distribution.

Recommendation:
A count of dog tags at the beginning of the year should be made so that the state can be notified if there are any missing. A reconciliation of physical tags to the computer report should be done in order to catch any discrepancies early.

Overexpenditures

Finding:
The improvement authorization for capital ordinance number 98?9 was overexpended by $2,654.36.

Finding:
The Ewing Community Center reserve was overexpended by $16,287.13.

Finding:
The Flood Mitigation Assistance grant was overexpended by $ 587.03.

Finding:
The worker's compensation reserve was overexpended by $56,696.44.

Recommendation:
Expenditures should be monitored throughout the year in order to avoid overexpenditures.

Budgeting

Finding:
The Township has made arrangements to defer the payment of certain obligations to Mercer County Improvement Authority and to Ewing Lawrence Sewerage Authority. Accordingly the fiscal year 2000 and 2001 budgets have not included an appropriation for the appropriate amounts of these obligations.

Recommendation:
Although the cash basis budget would not require the inclusion of an appropriation for such amounts with payment arrangements in future periods the prudent fiscal policy would be to include a budget appropriation in current periods and avoid deferring current obligations to future periods.

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