KEYPORT – The members of the Borough Council in Keyport have approved a corrective action plan in response to a finding contained in the 2020 municipal audit.
During a meeting on Dec. 7, council members passed a resolution certifying the 2020 municipal audit.
According to state law, the governing body of every municipality must conduct an annual audit of its books, accounts and financial transactions. Keyport’s audit was conducted by a registered municipal accountant.
Prior to certifying the audit, the council members passed a resolution approving a corrective action plan for the audit.
According to the resolution, the auditors commented that there were several instances where they found commitments were made prior to the certification of funds. An analysis of this finding determined goods were procured and subsequently covered by the issuance of a purchase order on frequent occasions.
The corrective action, according to the resolution, will be for borough officials to reinforce their purchasing policies and procedures that require an approved purchase order and certification of the availability of funds prior to ordering goods or services. Keyport will be moving to an electronic requisition system to help streamline the process.
According to the resolution, the corrective action plan was implemented on July 1. No additional findings were made in the municipal audit.