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City auditor David Kaplan recently completed his audit of municipal finances for 2011 and presented his findings — and 10 recommendations — to the council.

The city is required to have its finances audited annually. Kaplan’s firm listed the 10 recommendations in its audit report this year.

“The problems and weaknesses noted in my audit were not of such magnitude that they would affect my ability to express an opinion on the financial statements taken as a whole,” Kaplan’s audit report read.

One recommendation stemmed from city records having “significant deficiencies, to put it mildly,” Kaplan said. He recommended the city “strengthen internal controls over the general ledger and financial reporting process” to remedy the shortcomings in recordkeeping.

Kaplan also found the school district has been over-paid due to confusion over property taxes, he said.

The city’s next step is to establish a corrective action plan [CAP], Reidy said. Chief Financial Officer Juan Uribe is currently working on the plan, which will be presented to the council.

“We should not carry forward any of those deficiencies to the next year,” Uribe said this week. “It should be corrected this year.”

Uribe will disclose the plan to all departments that will be affected, he said.

The full audit report can be found on the city’s website. The following is the list of Kaplan’s recommendations, verbatim:

It is recommended:

2011-1 That the provisions of the Local Public Contracts Law be complied with.

2011-2 That the Recreation department maintain a cash receipts journal, that all fees charged for Recreation programs be established by action of the governing body, and that any fees waved be done in compliance with waiver requirements established by the governing body and be fully documented.

2011-3 That expenditures be curtailed to available budgetary resources.

2011-4 That City strengthen internal controls over the general ledger and financial reporting process.

2011-5 That the City limit access to its finance, payroll and City Clerk’s department area.

2011-6 That the City maintain accurate fixed asset inventory records.

2011-7 That the provisions of GASB Statemenet No. 45 be complied with and the City update it’s report on unfunded other post-employment benefits.

2011-8 That the cash deficits in Ordinances #2903 and #2967 be funded.

2011-9 That payments to the Local School District be limited to amounts actually owed.

2011-10 That the amount due to Monmouth County for their share of amounts received for long term property tax abatements be remitted to them.

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