2021 Report of Audit

The Borough of Rockaway's audit report for the year ended December 31, 2021, provides insights into the financial position and operations of the municipality. Conducted by Nisivoccia LLP, the audit assesses various funds including the Current Fund, Trust Fund, General Capital Fund, and Water Utility Fund. The report details the Borough's adherence to accounting practices prescribed by the Division of Local Government Services, highlighting revenue, expenditures, assets, and liabilities. Additionally, the report addresses compliance with legal and regulatory provisions, pension plans, and long-term debt obligations. It also highlights a continued deficiency in segregation of duties due to budgetary constraints. The report includes supplementary data such as schedules of cash, taxes receivable, revenue accounts receivable, and appropriation reserves. Key areas covered are school district taxes, deferred charges, pension plans (PERS and PFRS), other post-employment benefits (OPEB), risk management, and cash management. Key issues identified are delinquent taxes, tax title liens, and the need for strong oversight of COVID-19 funding to ensure adherence to federal requirements. While the report expresses unmodified opinions on the regulatory basis financial statements, an adverse opinion is noted on U.S. Generally Accepted Accounting Principles. The report provides recommendations for improvements, including a more stringent approach to managing grants receivable and improved documentation practices.