The Cape May city government’s 2024 audit has raised concerns among city councilors.
At its meeting Aug. 5, the council certified the 2024 audit but also approved corrective action to address the audit’s findings. The findings were sufficiently concerning that Deputy Mayor Maureen McDade said she will personally meet monthly with the chief financial officer and the city manager to monitor the progress toward improvements.
However, Mayor Zackary Mullock said there are always findings with audits every year. The 2024 findings included at least one issue that had not been cleared from 2023. Stacey Sheehan, a representative of the Tax Payers Association of Cape May and herself a former council member, asked how the city plans to ensure that the findings are cleared.
The analysis by the audit firm of Ford Scott and Associates included failure to maintain the accuracy of the general ledger, overspending in the capital improvement fund, accounts that were not fully reconciled for the 2024 year, procedures that did not accurately fund the payroll account, and an extension of some health insurance payments into 2025 that should have been paid earlier.
Other findings including a delay in filing of annual financial statements with the state.
The report lists seven corrective actions. Among them: developing closing procedures before year-end 2025, monitoring the capital improvement fund for availability of down payment funds before the introduction of bond ordinances, and monthly health insurance payments remitted to the proper agencies.
Some of the corrective actions have already been taken, according to the resolution the council considered; others remain to be implemented.
Mullock and McDade showed some annoyance that Sheehan was reading so many findings from the podium. McDade said the public could read for themselves from the agenda attachments, but did tell Sheehan, “Your comments are well taken.”
McDade reiterated that everything that needs attention has been assigned to a responsible party with a date set for completion. She said her monthly sessions will ensure council stays on top of the issues.
