TRENTON— For years, Irvington Township has kept sloppy accounting records, repeatedly filed financial reports late, ignored auditor’s recommendations, and tolerated obvious conflicts of interest, the Office of the State Comptroller (OSC) found. As a result, OSC asked the State to install an independent fiscal monitor to oversee the Township’s finances.

In a letter released today, addressed to Governor Phil Murphy and the Legislature, Acting State Comptroller Kevin Walsh noted that OSC’s 2009 and 2011 reports identified serious deficiencies in financial controls and made recommendations for remediation. More than a decade later, OSC found that the Township hadn’t implemented many key recommendations, government finances were in disarray, and taxpayer funds were at risk as a result.

“Township leaders and staff didn’t even get the basics right,” said Acting State Comptroller Kevin Walsh. “For years, they ignored recommendations from OSC, and from their own auditors. It’s clear that they need the day-to-day oversight of a monitor to get their house in order.”

OSC’s first audit of Irvington, in 2009, found the general ledger was out of balance by $59.7 million. OSC made 21 recommendations and two years later, found 13 had not been fully implemented. OSC’s latest review examined documentation from 2017 through 2023 and found minimal progress.

Among OSC’s findings:

• On average, the Township filed required financial reports 145 days, or approximately five months, late. The delays served to decrease transparency and hinder oversight of the Township’s finances.
• Nearly $800,000 in “unidentified expenditures” were made without the budgetary approval of the governing body. The expenditures, flagged in a 2019 audit, circumvented budgetary controls.
• The Township Council spent at least $200,000 over five years, leasing office space from a company that is partly owned by the CFO. This company also was the sole bidder, and the CFO submitted and signed the bid on behalf of the company. Local Government Ethics Law and the Township Municipal Code bar officers or employees from having these kinds of conflicts of interest. OSC is referring the matter to the New Jersey Department of Community Affairs' Division of Local Government Services for investigation.
• The CFO’s license lapsed multiple times. (Renewing a license requires taking classes and submitting an application on time.) The CFO has occupied the role since at least 2009.
• The independent auditor repeatedly reported findings that the Township’s various financial accounts were riddled with errors. OSC found a $3.8 million discrepancy between the 2021 general ledger and the grant budget status report. Cash disbursements also were not accurately recorded.

In addition to recommending that the State appoint a fiscal monitor, OSC made seven recommendations to Irvington Township and requires the Township to provide progress reports to OSC every 90 days. 

By statute, OSC is required to follow up within three years of an audit to determine if recommendations have been followed. This review of Irvington marked the first time OSC conducted a second follow-up, but Walsh said that OSC may conduct additional follow-ups of audits, as needed. Additionally, OSC plans to start publishing finalized corrective action plans to give further transparency and inform residents of what actions the government agreed to take.

“Good governance requires commitment and vigilance,” said Walsh. “What we found in Irvington was the opposite – leaders and staff who disregarded recommendations, laws, ethics, and their obligation to safeguard public funds.”

Read the letter to the Governor and Legislature, and our report on Irvington.

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To report government fraud, waste, mismanagement, or corruption, file a complaint with OSC or call 1-855-OSC-TIPS.