N.J.S. 40A:11-4 states "Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold shall be awarded only by resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore except as is provided otherwise in this act of specifically by any other law".

N.J.S. 40A:11-3a states in part, "When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a contract year the total sum of $17,500, the contract may be awarded by a purchasing agent when so authorized by ordinance or resolution, as appropriate to the contracting unit, of the governing body of the contracting unit without public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations, if the purchasing agent is qualified pursuant subsection b. of section 9 of P.L. 1971, c. 198 (C.40A:11-9), the governing body of the contracting unit may establish that the bid threshold may be up to $25,000".

Subsection c. of N.J.S. 40A:11-3 directs the Governor, in consultation with the Department of the Treasury to adjust the threshold amounts every fifth year after enactment of P.L. 1999 c.440.

There were no exceptions with the above purchasing requirements noted during the audit.

The minutes indicate that bids were requested by public advertisement for the following items:

• Reconstruction of Green Lane
• Leasing of police vehicles
• Reroofing of Community Center
• Sub-code officials' inspection services
• Purchase of garbage truck
• Purchase of dump truck
• Surfacing of various streets

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 21, 2001 and was complete.

TOWNSHIP OF EWING

COUNTY OF MERCER, NEW JERSEY

PRIOR YEAR

FINDINGS AND RECOMMENDATIONS SUMMARY

All findings and recommendations from June 30, 2000 have been resolved except for:

- The fiscal year 2001 budget does not include an appropriation for the appropriate amounts of obligations to Mercer County Improvement Authority and Ewing Lawrence Sewerage Authority.

TOWNSHIP OF EWING

COUNTY OF MERCER, NEW JERSEY

CURRENT YEAR

FINDINGS AND RECOMMENDATIONS

Organization and Record Keeping

Finding:
The grant contract for the Green Lane reconstruction project was not available for inspection. The Township engineer retains original documentation.

Recommendation:
Copies of the grant contract should be retained by the Clerk's Office.

Over expenditures

Finding:

The appropriation reserve account for the New Jersey Transportation Grant was overexpended by $640.

Finding:

The worker's compensation reserve was over expended by $139,391.02.

Finding:

The Ewing Community Center reserve was over expended by $5,624.31.

Recommendation:

Expenditures should be monitored throughout the year in order to avoid over expenditures.

Finding:

During fiscal year 2001, an employee from the Court's office retired and there was no transition of bookkeeping duties to another employee. As a result, bank reconciliations have not been performed since December 2000 and certain payments to the county and state were delayed for months.

Recommendation:

The bank accounts of the Municipal Court should be reconciled monthly and payments to various agencies should be made by the tenth of each month as required by state statute. They also need to have an accounting procedures manual prepared so that there is better transition in the event an employee leaves.

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