Auditors Cite Numerous Problems in West Deptford's Annual Audit
Representatives from Holman & Frenia detailed nearly three dozen issues they found in their audit.
Amid complaints of uncooperative township employees and $20,000 in cost overruns, auditors Holman & Frenia hammered West Deptford with 34 different issues stemming from their audit of the township’s books.
Ranging from the serious—a lack of a general accounting ledger—to the silly—an issue with a magazine subscription—the auditors admonished township officials for what they said were issues that opened up local government to potential fraud, without actually finding any instances of fraud.
“You should all be concerned,” auditor Keith Ingling said. “Your township funds can be stolen.”
Ingling particularly harped on the lack of a general ledger—a problem he said goes back at least as far as 2007—saying it not only complicated the audit process, but flies in the face of what’s required.
“This is not just a suggestion—this is a state statute that you are not in compliance with,” he said.
Ingling was particularly concerned with the risks presented by the lack of a general ledger, among other problems.
"We’re not saying that there is fraud," he said. "There is a significant opportunity for fraud."
Otherwise, Ingling and fellow auditor Mike Holt detailed the problems their firm found, including, but not limited to:
- Informal payment plans are in place for water and sewer charges, as well as property taxes.
- Legal bills are split 65 percent and 35 percent between the general fund and the water and sewer fund, regardless of the breakdown of legal work.
- There's a need to review the township’s Payment In Lieu of Taxes programs.
- Two employees’ salaries are being charged to the Open Space fund, without documentation establishing whether that’s acceptable.
- Township committee meeting minutes don’t have page numbers. “We want to make sure there’s not the opportunity for someone to come in and slide a page into the minutes,” Holt said.
- Two employees out on medical leave didn’t contribute 1.5 percent of their pay to medical benefits, as required by the state.
- The water and sewer billing system is so outdated, bills have to be manually adjusted using a typewriter.
- One water and sewer employee had his water meter read just three times in six years, and only paid the minimum for much of that time; when a meter was put in at the curb, Holt said, about $1,000 in charges were realized. “We just let the customer read the meter,” Ingling said.
- Three accounts with Fulton Bank using the township’s tax ID number are actually for outside groups.
- Current township policy only requires a single stamped signature on checks, with the stamp being held by someone besides the director of finance, whose signature is on the stamp. Holt recommended two signatures, and not allowing the signature stamp to be used by anyone besides its owner.
But more work needs to be done to close out the financials and then check to make sure there isn’t fraud, Ingling said.
“We’re not even to the point yet that we can, with 100 percent comfort, say that we’ve completed the financial statement audit,” he said.
With that in mind, committeeman Sam Cianfarini, who called the audit, “miserable,” moved to bump Holman & Frenia’s contract with the township to delve deeper into the audit, which was approved unanimously.
With the $20,000 in overruns plus additional costs, it puts the contract with Holman & Frenia, which has already donated money to this year’s Republican campaign, up to a max of $103,000.
J F Rando
9:33 am on Sunday, June 17, 2012
Keith Ingling was being conservative - there has not be a general ledger for many a year.Having read corrective action reports covering the years 2006 thru 2009 these problems only scratch the surface. Prior Admistrations and Auditors were negligent and the people of West Deptford got the shaft. How can a township's finances be managed without a general ledger? The answer is they cannot . If anyone thinks the audit report and its findings is political think again. You can't argue with the facts.
With the township's books in such bad shape how can we determine what it has cost us in litigating the Eagle Point tax appeals. It can't. So Senator Sweeney how much are we leaving on the table or should I ask how much did the lawyers make over the past 20 some years? We the citizens of West Deptford got Riverwinds and recreation
facilities that for all we know should not have cost us what they did - because of mismanagement. What we must have is a forensic audit.
theresa barnett
10:30 am on Sunday, June 17, 2012
west deptford ,nothing new under the sun.yet ,i probably would of applied for a job there and be told ,did not have the birds of a feather skills , like must be able to flip the script. t.b .(sounds safe)
Celeste Martins
11:06 am on Sunday, June 17, 2012
It appears as if the auditors are going over everything with a great deal of scrutiny but why can't their be true transparency in such efforts. Why has a predominately republican township committee appointed a firm that has openly donated money to the republican party? I am sorry but I am tired of this. Why can't a firm be sought out with no ties to either party? This just opens up the committee, and potentially the firm, to the possibility of questions.
jennifer bailey
11:17 am on Sunday, June 17, 2012
WOW! Did we the taxpayers of west deptford really got screwed from previous years of the former committee members.
Could this mean litigation against Queen Anna and King shields and whoever else is involved.
Maybe it's time to clean house once and for all.
My hard earned money going into the pockets of the previous adminstration committee people.
This does not look good for the past representation that we thought they we're doing their job.Let's start with Sweeney and work your way down.
get rid of this garbage that bilked thousands and thousands of dollars from our wallets and lined their sweet pockets for all the necessities that a lot of us can;t enjoy. WHAT A TOTAL DISGRACE and this is coming from a democrat that believed the party could do no wrong.I am ashamed to be affiliated with this party.
I'll be switching this november election to independent and vote to who I think will hopefully do the right thing.
J F Rando
12:12 pm on Sunday, June 17, 2012
Cleste Martins - The previous auditing firm made contributions to the Democratic Party. It is unfortunate but that is how the current systems works. We should change it. The facts are (putting aside politcal contributions) why wasn't the corrective action required (in prior years) taken. Also, this audit is only based on the financial statements and does not go into detail. That is why we need a forenic audit.
W.D.78
12:48 pm on Sunday, June 17, 2012
How many other water and sewer workers were allowed to rip us off for water and OT hours while our bill looks like we were charged by the glass ? How many went out on workers comp. this year already? Where the heck is all the supervision because we have about 30 supervisors and foreman?If you ever have a problem you can find alot of the so called workers sitting down the river or find there trucks in front of there homes or at the local lottery stores through out the township.
Cyndy VeteransWife
2:12 pm on Sunday, June 17, 2012
As the saying goes - There is trouble in river-Windy city. Now, will authorities prosecute or look the other way because they get paid either way? Seems West Deptford AND Gloucester County taxpayers/citizens paid for good government for decades but didn't get good government.
wildwood bella
2:22 pm on Sunday, June 17, 2012
w d 78 you bring up a god point I'm always seeing the township vehicles used for other than township work.
I seen a utility truck at giant fitness center in woodbury heights 2 weeks ago.
Maybe there should be some investigation on the use of these vehicles.
one more thing how many township workers does it take to dig a hole?
9 ( 7 to watch the other 2 )
also there was a rumor that if you paid your water bill in cash it was never sent to or used correctly I understand it was pocketed. AUDITORS CHECK THAT OUT TOO
J F Rando
8:44 pm on Sunday, June 17, 2012
The following links should be reviewed by the citizens of WD Twp. Sam Cianfarini spoke to Govenor Christie at the town hall meeting in Feb 2011. Sam mentioned our
level of debt and asked the Govenor to send auditors to audit our books. Todate we have not heard from Trenton. Fox News ran a special which was to have been followed up with more information. They were side tracked - by who? Dave Shields did not do the citizens of this Twp any favors by building Riverwinds - it was our money to begin with and managed poorly. The Twp's books are a mess and have been for many years. Sam and I have been involved since Jan 2009 trying to get this mess brought to the attention of Trenton, the citizens of WD Twp and get a new administration on the council. Is Dave Shields worth what he is getting in retirement and what he made prior to his retirement. I think not - he certainly was not a professional financial manager.
http://youtu.be/YNAfB_kJXGE (Governor Christie exchange)
http://youtu.be/jccOEIHANCE (FOX news report on Dave Shields abuse of WD citizens)
Pay to Play
8:32 am on Monday, June 18, 2012
Pay to play is now running rampant in WD. Holman & Frenia donated generouosly to the republicans and now they are being rewarded with new contracts and overruns to their previous contract. How nice, wasn't thispart of the 20 point plan. How quickly that went out the window. Will they audit the taxpayer funds that are being donated to Sam's nieces (Samantha Budd) college scholarship?
demsridiots
10:50 am on Monday, June 18, 2012
pay to play you're a frickin idiot their the same firm that donated to the democratic regime the past few years YOU ARE AN IDIOT
Bryan Littel
12:35 pm on Monday, June 18, 2012
That's inaccurate. The Democrats have taken plenty of donations from various professional firms previously, but not from Holman & Frenia.
Jack Walsh
10:59 am on Monday, June 18, 2012
I agree Pay to Play, Sam and Ray haven't lived up to any of the principles they campaigned on and are in fact doing the exact opposite. All they care about is trying to drum up controversy in order to fire employees and replace with their own. Great leadership. Cimino should be sued for making such ridiculous statements that 4.5 million is missing. And now Sam is using township funds to pay for a $1000 scholarship for his niece. Next thing you know he will give the other $4000 to his son. These guys gotta go.
Bryan Littel
2:06 pm on Monday, June 18, 2012
While it's true Budd's his niece, it was a blind selection process - high school administrators narrowed down the list, gave Cianfarini six essays minus the students' names, and the decision was made from there.
W.D.78
11:42 am on Monday, June 18, 2012
If the twp. employee's are not doing the job there being paid to do they should be fired, no one owes them a job, that's how it works in america Jack. They should all be fired and made to reapply and be hired back if they are hard working skilled people.Not just given a job because they are friends or family.And let's not forget Sam and Ray had nothing to do with the 4.5 million that has disappeared.Also have to agree( pay to play) you are indeed an idiot for bad mouthing a high school athlete!
Jack Walsh
11:56 am on Monday, June 18, 2012
Sam, how many names do you make up in one day? Stop using taxpayer money to pay for your niece's college, that's ridiculous.
J J Evans
12:39 pm on Monday, June 18, 2012
Let me first say that I voted for Sam and Ray in November and couldn't be more diappointed in their first 6 months on the job. They continually get sued and lose, break promises, and line their pockets with campaign donations from professionals. Now Cianfariini thinks that it is okay to give taxpayer money to his niece Samantha Budd for her scholarship. I will be switching parties this fall and voting for DiCarlo. She handles herself with class and is very intelligent unlike her counterparts on the committee.
Sandy Wagner
4:05 pm on Monday, June 18, 2012
Before you change your mind about Sam and Ray do some more investigating. I think you will find that you have it all wrong. Someone has given you some bad information.
This township is very fortunate to have two men who have given of their time to make this township a better place to live , both for you and me , and for their own families. I know they are not in this for any personal gain, far from it. I think people forget these men are good people. And no, I am not a relative, just someone who knows these good men.
Give them time to turn things around. I don't think you will be disappointed.
Bill Bondar
5:37 pm on Monday, June 18, 2012
J J Evens, I'm thinking that you were never really a Republican. You must be a Democrat. Real Republicans would never say that about Sam and Ray. I know them as fine upstanding gentlemen. You should be thankful someone is willing to stand up and try to help the township while doing a thankless job.
Mr. Sensible
1:00 pm on Monday, June 18, 2012
This rhetoric and these false allegations need to stop. The scholarship recieved by Sam Budd (one of the most successful student-athletes and leaders in WDHS history) came from Mr. Cianfrini's pocket. Chintall and Cianfrini have decided to use their committeemen wages (which have been heavily reduced due to their efforts) to provide scholarships for hard working high school students. I am thankful that we have people on our committee that recognize the hard work of all citizens in WD and I am disgusted with these games being played by partisan town members. Leave Sam Budd and her well deserved scholarship out of this and focus on the real issues in WD-- the debt, Sunoco and years of corrupted leadership by party bosses in our town and county
Ron Burgandy
1:25 pm on Monday, June 18, 2012
just a quick piece of info on the scholarship Sam gave out.. it was an essay contest in which essays were submitted to him at random and he just so happened to choose Samantha-- because she is an incredible and more honorable leader than you nitwits on here that are unhappy because your party is being EXPOSED.
NJcorruptionsux
1:38 pm on Monday, June 18, 2012
West Deptford Township is a total EMBARRASSMENT! I used to be proud to say I lived in West Deptford, but I never really knew the truth, like so many others! All you so-called "people" who hold your heads high and think you are better than others and have raped this township, SHAME ON ALL OF YOU! God will deal with you!
BABA BOOEY
1:50 pm on Monday, June 18, 2012
these dumocratic morons will say anything.
disgruntled dems symbols being an ASS.fits to a tee.
their committee wages went towards the scholarships. dems,your sinking faster and faster it won't belong before it will be all republican
Deniose and Donna couldn't even get there democratics supporters to sign there petition for the sunoco deal so you know where they stand this coming Nov.
Ray & Sam you're doing what you said you we're gonna do bring the corruption out of west deptford and you're doing a good job of it.
and if employees that are not competent of doing there job there's a lot of people out of work could use a job republican or democrat.some of these employees had it made when Docimo and Daws was in charge.
Eric Wyzykowski
1:50 pm on Monday, June 18, 2012
As a CPA/auditor at a public accounting firm in center city Philly and a West Deptford resident, this absolutely sickens me. I agree, that depending on the recommendations of the current audit firm, a forensic engagement may be very beneficial for the township, maybe even more so for the prior years. The objective of an audit is to opine that the financial statements are free of "material misstatement" and may miss immaterial items. Having significant accounting experience, not having a general ledger is absolutely unreal. It is the basis of accounting. Debits and credits are tracked through the GL which are then reconciled to the supporting subsidiary reports. I had heard rumors in the past that the general cash accounts weren't even reconciled at the end of the year (this should be done monthly). With only having the information from this article I obviously do not have all of the details but generally speaking an auditor can not issue an unqualified (good) audit opinion when there are significant internal control deficiencies in place. Furthermore, I do not have any knowledge of the prior years auditing firm but something just doesn't sound right. If any of the committee members read this post, I would consult the current auditing firm on any recommendations relating to the prior years. Without a GL in place and depending on how bad the control environment is,I may even have difficultly opining on the current year financial statements, even if fixed going forward.
Former Auditor
10:05 pm on Monday, June 18, 2012
As a fomer internal auditor I agree with the comments posted by Eric. A forensic audit may not even be able to put all the pieces together if cash is involved and accounts unreconciled. Tis amazing in today's computer age..............
WDNeedsHelp
5:55 pm on Wednesday, June 20, 2012
Please visit www.wdtruth.org and you can view all the Township financial reports.
J J Evans
3:22 pm on Monday, June 18, 2012
ok so 6 essays were submitted to Sam Cianfarini and he just so happened to pick his niece. If there wasn't so many discrepancies in his past statements and behavior I may believe this, but giving the way this man conducts himself that is just too farfetched. And I agree with the prior statement that this town has become an embarassment since they took over.
vinnie boombatz
5:17 pm on Monday, June 18, 2012
you don't see them on fox news being interogated for anything dirtbag.
you people that critisize these two gentleman are disgrunted because the regime is coming to an end real fast.
just wait in two weeks when the real information comes out the dems will be moving out of town because of pure embarassment.
heads are going to roll it will be like vj-day in this township
the democrats in this town will be sinking faster than thoses hapless phillies.
GO NATIONALS LOVE THAT TEAM
Jason Zepperhed
8:57 pm on Monday, June 18, 2012
I think it is nice that Sam gave a $1000 scholarship to his niece. She had a great career at WD and I wish her all the best in the future. Who were the other recipients of the $1000 scholarships. Didn't he say he was giving the $5000 stipend to scholarships? Who are the other recipients? If Chintall dontated his as well there should be 10 scholarships.
Bryan Littel
9:00 pm on Monday, June 18, 2012
As reported back in April, it's a $1,000 annual scholarship for now:
http://westdeptford.patch.com/articles/salary-cut-for-west-deptford-township-committee-members-passes-5-0
Chintall awarded his to Danielle McKeown.
Bruce Ruffian
8:57 pm on Monday, June 18, 2012
I think it was nice of Sam to give a $1000 scholarship. Who were the other recipients of the scholarships Sam & Ray were donating to the high school? There should have been 9 others correct?
Sandy Wagner
11:21 pm on Monday, June 18, 2012
Bryan , thank you for showing these nay sayers that Sam and Ray did just what they said they were going to do. They are men of honor.
Rick Riley
9:26 am on Tuesday, June 19, 2012
No Sandy, what they promised to do was to donate their entire 5k salary to scholarships not 20% of their salary. Does anyone know if the other $8000 is being awarded like they promised?
WDNeedsHelp
5:58 pm on Wednesday, June 20, 2012
Do you understand what a scholarship is???? The lump sum is put in a fund and annual payments are made out of that fund to the selected recipients. That scholarship could last for decades if invested and donated to properly. Obviously you did not attend college.
joe baur
9:26 am on Tuesday, June 19, 2012
I have lots of questions. how often are audits required? when was last audit? what were the results of that audit? how can an audit be done without a GL? is there an issue with twp. audits elsewhere in NJ?
redneckwillie3
9:26 am on Tuesday, June 19, 2012
bryan,what happened to the remaining $8000.00 if it's an annual event for now does the remaining money sit in limbo.
Bryan Littel
9:35 am on Tuesday, June 19, 2012
They indicated it's going to be a long-term scholarship fund, meaning the rest of the money is going somewhere it can earn interest.
redneckwillie3
10:08 am on Tuesday, June 19, 2012
it seems to me they are not living up to what they initially stated before election time.
this you know is going to start a lot of controversy.
just want to know,proof in the pudding
redneckwillie3
10:08 am on Tuesday, June 19, 2012
is this 1000 over a four year period or just a one shot deal that would be a total of 4000
Bryan Littel
10:16 am on Tuesday, June 19, 2012
It's $1,000 per year for as long as they can fund it.
redneckwillie3
12:34 pm on Tuesday, June 19, 2012
then they are not living up to their promise that the entire salary would go towards a scholarship come ray & sam live up to your word.that was one of your campaighn promises.
$1000.00 just about buys books for a semester $5000 would have been the right thing to do.DISAPPOINTED GUYS
Ron Burgandy
1:37 pm on Tuesday, June 19, 2012
dude, read the freakin comments above. are you blind? both committeemen donated their ENTIRE salary to the school, which will disperse of it over time. this is being WISE and FISCALLY responsible with donated scholarship money... something you dumb liberals don't know about. get a grip dude and learn how to read.
Sandy Wagner
7:09 am on Wednesday, June 20, 2012
If you would listen to Bryan and check the article he wrote stating the facts on the scholarship you wouldd not be so misinformed. Check the facts and save us from your negativity. Let's make this an intelligent forum, that I am sure it was intended to be, for the citizens of West Deptford. Sam and Ray did not have to do the scholarships, but they did They already saved the taxpayers many thousands of dollars taking a salary cut and eliminating health care for the committee.
Mr Caspers
3:06 pm on Tuesday, June 19, 2012
Are we really supposed to believe Sam didnt know it was his niece? Gimme a break. We should also have the auditors monitor this scholarship fund because it sounds awful suspect. It will probably go to friends and family every year. Bryan, did you read today's times? Any comments on the blatant lies by Mark Cimino?
Bryan Littel
3:08 pm on Tuesday, June 19, 2012
Working on a related piece on that today.
Ron Burgandy
10:26 pm on Tuesday, June 19, 2012
you should call the high school and find out for yourself. better yet read the earlier comments, Bryan already clarified that.
redneckwillie3
5:30 pm on Tuesday, June 19, 2012
first of all how do you know they were lies no proof either way let's wait and see what they actually dig up.
beside you really gonna believe that weasel G WHITE.he's one of the biggest crooks along with norcross and sweeney.
sit back and enjoy the show it could get very interesting especially the information that's coming out in 2 weeks.
el wingador might be getting company
Gene Zosling
9:08 am on Wednesday, June 20, 2012
They should re-name the scholarship to "the cianfarini family fund".
Occupant
9:45 am on Wednesday, June 20, 2012
How about the "Zosling Democratic Lackey Payback Fund:
WDNeedsHelp
11:00 am on Tuesday, June 26, 2012
I love how the article that trashes the previous administrations handling of the finances goes off the cliff and discusses a $1000 dollar scholarship. Lets stick to the points at hand, why are there SOOOOOOO many issues being found by the auditors? This is looking more and more like outright theft and less like incompetence if you ask me. Lets start calling the State Attorney General and start demanding an investigation.
http://www.nj.gov/oag/phone.htm
Perro Grande
8:44 pm on Monday, July 2, 2012
has anybody reviewed the Comprehensive Annual Financial Report (CAFR)
for West Deptford?