Audit Findings Highlight Poor Fiscal Responsibility

Perhaps unintentionally, the budget hearings have highlighted more than just how tax dollars will be spent in the new fiscal year but, also, how well City Hall is being run. Throughout the hearings the Audit Report for fiscal year ending June 30, 2007 has been referenced. Findings in the report (submitted July 2008) are being used to gauge success in the coming year.

There were 10 findings that the City created corrective action plans for. I’ve listed 3 of the most disturbing findings and their corrective action plans below. This is simply poor business management. Pressure must be put on the Administration and the Council to ensure that these corrective action plans are actually put in place.

Finding: Numerous purchases are made directly by various division heads and not through the Division of Purchasing.
Recommendation: City purchases should be made through the Purchasing Agent.
Corrective Action: A revised purchasing policy will be developed and distributed to all employees. A meeting will be held with all of the department heads and other employees responsible for purchasing within various divisions to discuss new policies and procedures supporting the new purchasing policy. Guidelines will be developed to ensure that all purchases are centralized. Monthly reports for compliance monitoring will be provided to the administration. The City Administrator and Director of Administration and Finance will enforce adherence to purchasing policy. Vendors will be notified that the City of Plainfield will only honor purchases accompanied by a purchase order number.
Implementation Date: October 2008

Finding: A detailed analysis of foreclosed properties was not maintained.
Recommendation: Detailed analysis of foreclosed property should be maintained.
Corrective Action: Research is being conducted to identity all foreclosed properties. An electronic file of each foreclosed property will be prepared and maintained by the Tax Collector.
Implementation Date: July 2008

Finding: A monthly report detailing non-cash transactions made by the tax office was not provided to the finance office. Since this was not done, the Current Fund general ledger was incomplete.
Recommendation: A monthly report detailing non-cash transactions made by the Tax office should be provided to the Audit & Control Division.
Corrective Action: An outside consultant was retained to assist the Tax Collector in developing month-end reports. Reports for SFY 2008 were prepared and provided to the Audit & Control Division by the end of SFY 2008.
Implementation Date: July 2008

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