Pennsauken School District has shown limited progress in implementing audit recommendations from three years ago, according to a report by the New Jersey Office of the State Comptroller (OSC). The findings reveal that out of 11 recommendations made in 2021, Pennsauken partially implemented five, fully implemented one, and did not implement five.
The initial audit suggested that Pennsauken could have saved $1.6 million by participating in the State Employees’ Health Benefits Program (SEHBP). It was found that Pennsauken relied on an incorrect analysis by a broker who failed to disclose their commission fully.
In its follow-up review, OSC noted that while the broker’s cost comparison for fiscal year 2025 was accurate, there was no evidence provided for similar analyses for fiscal years 2023 or 2024. The broker disclosed a gross commission of $217,000 as recommended but had vague contract provisions potentially allowing additional compensation. OSC advised revising the contract to prevent exceeding standard commission amounts.
The report also highlighted that Pennsauken paid $1.35 million in stipends to employees for extra-curricular duties without proper controls. Inconsistencies were found where some employees received more than approved amounts. Additionally, there were issues with oversight on food inventory and fixed assets like computers and improper accrued leave payments.
In contrast, Berlin Township showed progress with six out of 13 recommendations fully implemented and six partly so. As a result of OSC's advice, Berlin sold unused properties generating $380,000 and stopped providing insurance benefits to ineligible employees.
The previous audit indicated Berlin spent $219,000 on health insurance for officials without verifying eligibility based on work hours. The follow-up found no council members received health benefits; only the mayor received dental coverage after being deemed eligible.
However, Berlin faced issues with miscalculating health insurance waiver payments and bypassing procurement regulations when obtaining dental insurance without competitive quotes.
