The Lacey Township Financial Department has issued a 2011 Corrective Action Plan as it seeks to continue improving the township’s financial records after $500,000 was misappropriated in 2009.
The 2011 audit was recently completed by an independent auditor, and once again states that the township did not keep financial statements in conformity with accounting principles generally accepted in the United States.
But Chief Financial Officer Adrian Fanning has been playing catch up since , when former CFO John Adams retired and a township employee who lacked proper qualifications and certifications was hired.
“We’re still in the process of cleaning the whole thing up,” Fanning said.
In 2010 and 2009, certified public accountants and business and financial advisers Hutchins, Farrell, Meyer & Allison also expressed an adverse opinion on the township’s financial statements.
Although much of the material weaknesses from the 2009 audit were rectified, the 2011 audit noted two repeat findings: the general ledger was not, in all cases, in agreement with the subsidiary ledger and there were a number of interfunds on the balance sheets as of Dec. 31.
While the first finding is included in the Corrective Action Plan, the second has since been addressed, Fanning said.
“I’m happy that we’re making progress. And hopefully that’ll be the last time we’ll see those (findings),” he said.
There are more than 400 individual items that have to be examined and tied into the general ledger, Fanning said.
“Unfortunately we don’t have the time or the resources here to spend 100 percent of our time doing that,” he said. “We work that in when we can.”
Last year, temporary help was hired.
“It’s purely a staffing issue,” he said. “I’m pleased with the progress we’re making.”
Mayor David Most also said he was satisfied with the 2011 audit.
“It’s reflective of the CFO and he’s doing a good job,” Most said. “We made monumental improvements. This year we should be back to normal. By next year, we shouldn’t even have those issues. It just takes time to work through that.”
The Corrective Action Plan was accepted by the township committee on Thursday, Dec. 27 and sent to the Division of Local Government Services.
The audit and Corrective Action Plan are attached to this story as a PDF.
The following are findings from the 2010 audit and Fanning’s Corrective Action Plan:
Corrective Action Plan
The General Ledger was not properly maintained and the General Ledger was not, in all cases, in agreement with the subsidiary ledger.
That the Township's General Ledgers be properly maintained.
"A similar comment appeared in the previous year's audit. We will continue efforts to ensure that the General Ledgers and subsidiary records are in agreement in all cases."
There are a number of interfunds on the balance sheets as of Dec. 31.
That an effort be made to liquidate all interfunds prior to Dec. 31.