AUDITOR INQUIRY LETTERS COMING TO YOU

As part of an audit of Township finances, residents are being asked to fill out forms detailing elements of their tax payments.

In a notice to taxpayers this week, Chief Financial Officer Juan Uribe alerted residents to the inquiries.

The audit is being conducted by Samuel Klein & Co. of Newark at a cost of about $50,000, according to a resolution authorizing the audit by the Township Committee.

But Uribe told us via email that the requests for information are not mandatory and all information is confidential

Uribe's statement:

Third parties confirmation is a customary procedure required per Generally Accepted Government Auditing Standards, also known as Yellow Book or GAGAS.  It is also a standard procedure followed for private and public entities audits, as per directives of the Auditing Standards Board within the American Institute of CPAs.
Answers to the confirmation letters is appreciated by external auditors, but responses from recipients is entirely optional; there are not consequences of any kind. Municipal officials would not have access to the answers from recipients either. 
The amount of participants in an audit sampling is determined unilaterally by the independent external auditors. It is considered unethical for the finance team of the auditee to ask auditors this question, in order to avoid any influence in their testing of internal controls.

Examples of the inquiry letters can be found HERE.

See the Township notice below:

Tax Information for Municipal Audit Report 

Our auditors, Samuel Klein and Company, are conducting an audit of our financial statements. In the upcoming days, a random sample of Maplewood residents will receive one of the following letters from the auditors requesting information regarding property and sewer taxes:

• I - Information Taxes
• DT - Delinquent Taxes
• IU-S - Information Utility Sewer
• US - Utility Sewer Delinquent
• TTL - Municipal Liens  

 Please cooperate with the auditors by confirming directly to them the information requested in the letter(s). This is an integral part of the process in which the auditors are independently reconciling the Township's bank records.
The information is kept confidential to protect the residents' privacy.
If you have any questions, you may contact Juan Uribe, Chief Financial Officer at 973-762-8120 ext. 2500