Lodi Best Practices Worksheet- Full of Dishonest Answers(#3,6,8,24,27,etc; read #28 comment)

7/29/2019 Lodi Best Practices Worksheet- Full of Dishonest Answers(#3,6,8,24,27,etc; read #28 comment)

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" Best Practices Worksheet CY 2012/SFY2013lodi Borough(Bergen)

Comments0231 PleaseseeColorKeyat bottom ofsheet for limtsonanswers

Answer QuestionYes Sharing services has been promoted for many years as a means to control costs. In

addition to sharing resources such as labor, facilities and equipment with a county orwith neighboring communities, shared services include similar agreements with schoolboards, independent authorities and fire districts. Shared services do not includecooperative purchasing, cooperative pricing or commodity resale agreements. Did yourmunicipality actively negotiate (i.e. meet with representatives from a neighboring town,your county or another local unit) and/or enter into at least one new shared servicea reement in 2011?2 Yes N.J .S.A.40A:65-4b requires municipalities to file a copy oftheir shared serviceagreements, including amendments and renewals thereof, with the Division of LocalGovernment Services. Has your municipality filed a copy of all shared serviceagreements presently in effect, along with' any amendments thereto, with the Division?This response shall not include cooperative purchasing, cooperative pricing orcommodit resale a reements.

Yes Hasyour municipality adopted a vehicle use policy prohibiting personal use of municipalvehicles, and providing that employees authorized to use such vehicles for commutingto/from work have a fringe benefit value added to the gross income reported on theemployee's W-2 (unless the vehicle meets the "qualified non-personal vehicle" criteria

_-:-:- __ tiQecified by the IRS)?Yes Does your municipality's legal counsel and/or qualified purchasing agent review andapprove procurement specifications and professional service contracts before contractsare executed?

No Municipalities and their agencies are allowed to prohibit the award of public contracts tobusiness entities that have made certain campaign contributions exceeding $300 and tolimit the contributions that the holders of a contract can make during the term of acontract to $300. A model ordinance concerning pay-to-play can be found atwww.nj.gov/dca/lgs/muniaid/pay to play ordinance-contractor. doc. Hasyourmunicipalityadopteda pay-to-playordinance pursuantto N,j,S.A. 40A:11-51 that is morerestrictivethanstatestatutory requirements?

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Best Practices Worksheet CY 2012/SFY2013

Comments0231 PleaseseeColorKeyat bottomof sheet for limts on answers

Lod i Bo rough (Be rg en )Answer QuestionYes Does your municipality maintain an up-to-date municipal website containing at minimum

the following: past three years adopted budgets; the current year's proposed budgetincluding the full adopted budget for current year when approved by governing body;most recent annual financial statement and audits; notification(s) for solicitation of bidsand RFPs;contact information for elected and appointed officials, municipaladministrator or manager, municipal clerk, police chief, municipal court administratorand all department heads; and meeting dates, minutes and agendas for the governingbody, planning board, board of adjustment and all commissions?

No Does your municipality require its elected officials to attend on an annual basis at leastone course offered by the Rutgers University Center for Government Services (or asimilar education provider such asthe NJ League of Municipalities) covering theresponsibilities and obligations of elected officials (for example: ethics, municipalfinance labor relations ca ital lannin shared services?

Yes Are ordinances codified on an annual basis, with both the code and any uncodifiedordinances made available online?


3/13

Best Practices Worksheet CY2012/SFY 2013lodi Borough (Bergen)

Comments0231 Please see Color Key at bottom of sheet for limts on answers

Answer Question9 Yes With regard to your municipality's collective bargaining agreements that replaced

contracts expiring on or after 1/1/11, isthe overa II impact of the aggregate economiccosts limited to anaverage increase of 2% or less per year over the contract term? Anexample of such analysis can be found on the "PERCSummary Form; Public Sector; Non-Police and Non-Fire; Section V Impact of Settlement" and "PERCSummary Form; Policeand Fire Section VII 1m act of Settlement"

Yes Internal accounting control processes, procedures and authorizations are designed tosafeguard assets and to limit the risk of loss or misstatement. Does your CFOevaluateand discuss this risk assessment annually with your governing body or anappropriatesubcommittee of the governing body (Audit or Finance Committee) with a focus ondeveloping accounting control processes, procedures and authorizations designed tolimit the risk of loss or misstatement?

Yes An accounting policy manual documenting all internal accounting control processes,procedures and authorizations is of great value for staff to understand these safeguards.Are internal accounting control processes, procedures and authorizations documentedand communicated to staff?Yes Are all General Ledger cashbalances reconciled to bank statements (e.g. receiptspostings to bank deposits; disbursement postings to cleared checks and wire transfers)with all reconciling differences verified (e.g. deposits in transit, outstanding checks andostin differences?Municipalities have the potential to save significant money byauditing their telephonelines annually, and other utilities on a less frequent but nonetheless regular basis. Doesyour municipality perform anaudit of its utility accounts (e.g. telephone, electric meters,streetlighting) at least once every three years to ensure that inactive accounts arecancelled?

Yes Insubmitting your corrective action plan for findings cited in your annual audit, are theseitems reviewed by the CFOwith the governing body or anappropriate subcommittee ofthe overnin bod e.. finance or audit committee?

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Lodi Bo rough (Bergen )0231 Please see ColorKey at bottom of sheet for limts on ariswers "sAnswer Question Comments15 No Audit findings address areas needing improvement. Ignoring these findings devalues the 1)That the payroll account be reconciled

process; therefore, municipalities should correct noted deficiencies. Have all audit monthly, and maintained on an imprestfindings from the 2010 audit been 1) identified in the corrective action plan and 2) basis.addressed such that they are not repeated in the 2011 audit? If the answer is no, please 2)That a fixed asset accounting system belist the repeat findings in the comments section. maintained in accordance with TechnicalAccounting Directive #85-2 (N.J .A.C.5:30-

5.6).3) That controls procedures be implementedto ensure the timeliness of miscellaneousnon-tax municipal billings, and themaintenance of related accounts receivable

16 No The (Fa should prepare both the annual financial statement and annual debtstatement. Excessive auditor assistance on these documents could create a perceptionthat the auditor is not truly independent of the client in auditing the client's financialstatements. At an absolute minimum, each (Fa should prepare audit-ready financialrecords including books of original entry, general ledgers, subsidiary ledgers and othercomputer reports that accurately analyze and reflect the municipality's financialposition. These records should have sufficient detail for an accountant with sufficientknowledge of New J ersey's municipal accounting system to extract the informationnecessary in preparing the annual financial and debt statements. This requires that allfinancial transactions (both cash and non- cash) be posted inthe general ledger and thatall general ledger accounts be supported by subsidiary ledgers, reports, reconciliationsor are otherwise analyzed. Ifyour (Fa does not prepare the annual financial statementor annual debt statement, and does not present the financial records in a complete andaudit-ready condition, are you retaining outside assistance to do so from an individual orentity separate from your municipality's audit firm?

17 Yes The (Fa should prepare a municipality's annual budget. Ifyour (Fa does not preparethe municipality's annual budget, are you retaining outside assistance to do so from anindividual or entity separate from your municipality's audit firm?

Best Practices Worksheet CY 2012/SFY2013


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:Best Practices Worksheet CY 2012/SFY2013lodi Borough(Bergen)

0231 PleaseseeColorKeyat bottomof sheet for limts on answers18 Yes Grant programs can create a significant burden on a municipality's cashflow if program

expenses are either not timely reimbursed or are charged to other operating accountsinstead of to the grant. Are all grant revenues reviewed at least quarterly to determinethat all program expenses have 1) been filed forreimbursement and 2) have beenproperly charged to the grant, with follow up communication to grantor agencies ininstances where payments are delayed?

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Answer Question

Has your municipality fully and accurately disclosed in the "Budget Message" section ofyour CY2012/SFY 2013 budget the following: Revenues at Risk; Non-Recurring CostReductions; Anticipated CY2013/SFY 2014 Appropriation Increases; and StructuralBalance Offsets asdetailed in LocalFinanceNotice 2011-37?

Comments

Yes Inpreparing your annual budget it is important for both the governing body and public tounderstand the concept of surplus and how it accumulates (or declines) over the years.A formal policy regarding surplus serves as a basis for decisions concerning futurefinancial solvency, and the lack of a policv could lead bond rating agencies to downgradeyour municipality's credit rating. In developing said surplus policy your CFOshouldanalyze and explain at least a five-year trend of surplus; illustrating the factors causingeach annual increase or decrease. A surplus policy with realistic and sustainable goalscan then be determined. Does yourmunicipality have awritten policy goal for theamount of surplus available in support of municipal operations, and isthis goal evaluatedannuall -;>

Yes In preparing your annual budget for the current year it isimportant that the impact thatthese decisions may have on future years' budgets be presented, evaluated andconsidered before final action is taken. Long term plans concerning revenue,appropriations, tax levy, tax levy cap and surplus are critical toward sustaining (orachieving) a solid fiscal condition. Are projections calculated and discussed in sufficientdetail so that the governing body understands the impact that the current year's budgetmay have on the future tax levy (as restricted by the levycap) and future surplusbalances for at least two (2) future year's budgets?


6/13

Best Practices Worksheet CY 2012/SFY2013lodi Borough (Bergen)

0231 Pleasesee ColorKeyat 'bottomofsheet for limtsonanswers22 Yes Certainmunicipalities haveindirectly pledged prompt payment (i.e. issuedaguarantee) of debt

servicewith respect to debt issuedbycounties, independent authorities ordevelopers. BondRatingAgencies (e.g.Moody's, Fitch, Standard& Poor's)havedowngraded certain municipalities'bond ratings to below investment grade for lackof preparation in the event a lendercalls inadebt guarantee. If your municipality guarantees anydebt, are direct servicerevenuesthat maybepledgedagainstdebt repayment monitored bythe municipal CFO;andto the extent that cashflow from pledged revenue will not satisfy the debt repayment, aresufficient funds held inreserveto satisfy the guarantee or isanexistingauthorization in placeto issuedebt (e.g.abondordinance) in the eventa lender calls inthe guarantee?

Answer Question Comments

Yes Doe lected officials receive status reports at least quarterly on all budget revenues andappropriations asthey correspond to the annual adopted budget?

Yes Given the potential fiscal impact of property tax appeals on municipalities, the TaxAssessor and CFOshould review the status of filed appeals on a regular basis todetermine their effect on future budgets and plan accordingly. With input and approvalfrom the governing body, this plan should include an evaluation of current assessmentvalues and should consider setting aside an adequate estimated reserve to fundpotentially successful state tax courtappeals, Hasyour municipality considered aproperty reassessment/revaluation to counter the effect of successful residential taxappeals? In answering this question, ayes answer indicates thatthe municipality either1) determined after reviewing assessed values that a reassessment/revaluation isunnecessary due to assessed values accurately reflecting market values (resulting inasmall number of successful appeals); or 2) ifthe impact of appeals is significant, arevaluation plan has been filed with your County Board of Taxation.


7/13

Best Practices Worksheet CY 2012/SFY2013Lodi Borough (Bergen)

0231 PleaseseeColorKeyat bottomof sheet for limts on answersCommentsnswer Question

Yes Does your municipality exclude from healthcare coverage part-time elected andappointed officials (less than 35 hours per week)?

Yes Does your municipality limit health benefits to full-time (35 or more hours weekly)employees (excluding elected and appointed officials)?

One Grandfathered Elected Official

Yes Does your municipality conduct a monthly review of health benefit covered lives in aneffort to delete employees, spouses.or dependents who should no longer be receivingcovera e?


8/13

Best Practices Worksheet CY2012/SFY2013

Commentsl o d i B o r o u g h ( B e r g e n )

0231 Pleasesee ColorKeyat bottom ofsheet for limtsonanswers

31 Yes Municipalities frequently contract with or designate insurance brokers to securehealthcare coverage from insurance. carriers. Brokers are typically paid by third-partyadministrators (TPA's) hired to collect, review and pay healthcare bills, The municipalitypays the TPA, who in turn pays the broker. Broker fees are often directly related to theamount of insurance premiums or fees paid by the municipality (i.e. the higher thepremium, the larger the broker's commission). Thus, the municipality-broker-TPAarrangement is vulnerable to abuse because brokers could face conflicting incentives inseeking lower-cost insurance alternatives. If your municipality contracts with orotherwise designates an insurance broker, isthe structure for broker payments pre-set(i.e. plainly disclosed in the resolution and/or contract designating the broker of record)so asto mitigate the risk of brokers recommending more expensive insurance coverageto earn higher fees?

Answer QuestionYes As explained in Local Finance Notices .m1,1-20R and 2011-34, P.L.2011 c. 78 requires

employees to contribute toward healthcare based on a percentage of total premiumcost, subject to a four-year phase-in. Has your municipality implemented the employeehealthcare contribution provisions contained in P.L.2011 c. 78?

32 N/A The State Health Benefits Program (SHBP)offers medical, prescription and dental Lodi BORa already is aSHBPemployercoverage options for more than 850,000 participants, including employees, dependentsand retirees. All plans have substantial networks of healthcare providers, and provideservices nationwide. 62% of municipalities, and 33% of counties, within New J erseyparticipate in SHBP. As your municipality's collective bargaining agreements come upforrenegotiation, do your municipality's negotiation proposals seek contract provisionsallowing its employees to be switched to SHBP?

33 N/A If your municipality does not participate in the State Health Benefits Program (SHBP), Lodi BORaalready is a SHBPemployerhave competitive proposals for health insurance been solicited in the last three years;including from the Division of Pensions and Benefits for SHBPhealth insurance


9/13

Best Practices Worksheet CY 2012!SFY2013todf Borough (Bergen)Comments

0231 PleaseseeColorKeyat bottomof sheet for limts on answersAnswer QuestionYes N.J .S.A.43:15A-7.2 and 43:15C-2(b)(4) preclude independent contractors and individuals

performing professional services for any municipality or agency (e.g. municipal attorney,auditor, planner) under a professional services contract awarded pursuant to the LocalPublic Contracts Lawfrom membership in the Public Employees' Retirement System(PERS)and Defined Contribution Retirement Program (DCRP) . Hasyour municipalityreviewed the status of your independent contractors and professional services providersto ensure they are not deemed eligible for PERSand/or DCRP?

Yes The Fair Labor Standards Act (FLSA)is afederal law that establishes minimum wage,overtime pay, record keeping, and child labor standards affecting full-time and part-timeworkers inthe private sector and in Federal, State, and local governments. The lawrequires that overtime pay must be paid for all hours over 40 hours in awork weekexcept for those employees classified asexempt and thus not entitled to overtime.Management employees such as elected officials, municipal managers/administrators,municipal clerks, CFOs,public works superintendents, police chiefs and otherdepartment heads are typically classified ashaving exempt status and are not entitled toovertime pay. Other municipal employees may also be classified asexempt under theFLSA(you should consult with your labor counsel for more detailed guidance). Doesyour municipality refrain from paying overtime to employees who are classified asexempt under the FLSA? In answering this question, be aware that exempt status wouldalso preclude overtime payfor time worked during emergencies,attendance at nightmeetings, participation in training sessions, and police "off-duty" assignments (a/k/a"J obs in Blue").

Yes N.J .S.A.34:13A-8.2 requires public employers, including municipalities, to file with thePublic Employment Relations Commission (PERC)a copy of all contracts negotiated withpublic employee representatives. This includes, but is not limited to, collectivebargaining agreements, memoranda of understanding, contract amendments, and "sideletter" or "side bar" agreements. Copies of same may be emailed [email protected]. Has your municipalityfiled all currentcontractswith PERC?


10/13

Comments

Best PracticesWorksheet CY2012/SFY2013lodi Borough (Bergen)

0231 Pleasesee ColorKeya t bottomofsheet for limtsonanswersAnswer QuestionYes Does your municipality make available to the public free of charge, either through an

internet posting or on-site review, documents that show the current salaries of allpersonnel and additional documents that would allow the public to view how yourmunici alit 's salaries have chan ed over athree ear eriod?

Yes Are standardized forms completed and filed, either electronically or by paper, to verifyall employee time worked (e.g. time cards, electronic time keeping)?

Yes Does your personnel/human resources office maintain records that account for all leavetime earned and used byemployees?

Yes Dosupervisors review and approve/deny employee time and attendance documentationbefore those records are submitted to management and, in the case of departmentheads, is such documentation reviewed and verified independently?

Yes Does your municipality limit the carry forward of accrued vacation time to no more thanthe amount earned inthe previous year (meaning no employee hired after the effectivedate ofthe limitation policy can keep in any given year more vacation time that theyearned in the rior ear?


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Best Practices Worksheet CY 2012/SFY2013l o d i B o r o u g h ( B e r g e n )

0231 PleaseseeColorKeyat bottomof sheet for limts on answers

48 Yes For any employees covered by a collective bargaining agreement, has your municipalityeliminated longevity awards, bonuses or payments for employees hired on or after aspecified date, and refrained from increaslng longevity awards, bonuses or payments foremployees hired before a specified date?~~~!~!~~]~;~;~~~';;=~li~~~fi!!~1fy~$yfit~:":i~1:~~~~~:.:~~


12/13

Best Practices Worksheet CY2012/SFY2013lodi Borough (Bergen)

0231 Please see color Key at bottom of sheet for limts on answersAnswer Question Comments

50 Yes Hasyour municipality reviewed its policies and staffing requirements for providing trafficsafety around utility and construction work, and implemented policies to assure that themost efficient and cost-effective approach is taken? Traffic safety policies for utility andconstruction work should balance the interests of public safety with those of controllingcosts. For example, uniformed police officers controlling a cul-de-sac may be excessive;while parking a policeman in a patrol car on a major highway to act in lieu of a "crashtruck" may be insufficient and could endanger the officer. An appropriate traffic safetyplan should include parameters governing when police officers, flag men and safetyapparatus are used in different circumstances.

0 Select;,:A4~;~;Yes_.'.~4:"~f" No;:-2"~h' N/A

0 Prospective50 . Total Answered: s.46 Score (Yes+ N/A + Prospective)92% Score %0% Percent Withheld

Chief Financial Officer Completion Certification:TypeNameof CFOandCertification #in cells below:Charles S. Cuccia 0-00203

Name Cert#Date Prepared: 9/15/2012

Color Ke y . .Eaed=Repeat Ouestion: Prospective answers not permittedBlue= Questions where neither "not applicable" nor "N/A" answersarepermittedGreen = Repeatquestions where neither "Prospective" nor "Not Applicable" are permitted


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IBest Pra~tices Worksheet CY 2012/SFY2013

Lodi Borough (Bergen)0231 Please see Color Key at bottom of sheet for limts on answers

Answer Question CommentsNo Color = "Yes"; "No"; "Prospective" and "Not Applicable" are all permissible answers

ff f", '0. tlons.sc oNves oro snective or Amount ot Aid Imoact on final 5% aid oavment/imoact on total aid"not appllcable" .As .".;)c"

141-50 100% No penaltyP,j-QU tlU% ,Lose LU%wmcn equals loro OTtotal aid"r>L uuu LV)" "J%-wldell equals 2% of tota atd'1-"")/1 AnOL Lo$e~~rI9-16 20% Lose80% whieh ecuals 4% of total aid0-8 0% Lose 100% which equals 5% oftotal aid

Question Table of Weblinks (Cut and paste into browser)5 www.nj.gov/dcallgs/muniaid/pay_ to _play, ordinance-contractor.doc9 http://www.state.nj.us/perc/Coliective Bargaining Agreement Surnmarv Form Police and Fire 2012.04.02 Instructions and Example .pdf9 http://www.state.ni.us/perc/Coliective Barcalntnc Agreement Summary Form Police and Fire 2012.04.02 Instructions and Example .pdf19 http://nj.gov/dca/divisions/dlgs llfns/11/2011-37.doc30 http://nj.gov/dca/divisions/dlgsllfns/11/2011-20R.doc30 http://nj.gov/dca/divisions/dlgsllfns/11/2Q11-34.doc34 http://ni.gov/dca/divisions/dlgsllfns/07/2007-28.doc42 http://www.nj.gov/dcallgsllfns/02Ifns/cfo-2002-1.pdf

Documents

Lodi Best Practices Worksheet- Full of Dishonest Answers(#3,6,8,24,27,etc; read #28 comment)