Official Site of The State of New Jersey

TRENTON— Rockaway Township has saved millions of dollars, strengthened oversight, and improved financial practices after implementing most recommendations from a 2023 audit, according to a follow-up report released by the Office of the State Comptroller (OSC).

The review found the Township fully implemented 13 of 15 recommendations and partially implemented the remaining two, making substantial progress in correcting deficiencies related to employee benefits, procurement, and financial management.

OSC’s original audit identified weaknesses that led to excessive costs, improper payments, and insufficient oversight. The follow-up report shows the Township has taken significant steps to address those issues — delivering measurable savings for taxpayers and improving internal controls.

Among the key financial impacts:

• Approximately $1.4 million in first-year savings after switching prescription coverage for employees including:
  • Approximately $637,000 in plan cost savings confirmed through continued cost reductions
  • Approximately $755,000 saved by eliminating duplicate prescription coverage for retirees
• Nearly $1 million in property tax relief through the use of excess trust fund balances
• A $10.2 million reduction in long-unspent capital project funds, freeing resources for reassignment or cancellation

“Rockaway has made meaningful progress in addressing the issues identified in our audit including strengthening its financial practices,” said Acting State Comptroller Shirley U. Emehelu. “By implementing our recommendations, the Township is delivering tangible benefits to taxpayers, including increased efficiency in how public dollars are spent and stronger oversight, accountability and transparency.”

The Township also took steps to improve compliance with state laws and internal controls, including updating policies governing employee leave, strengthening procurement practices, and enhancing oversight of financial processes.

As part of these reforms, Rockaway:

• Updated collective bargaining agreements and policies to comply with state sick leave laws
• Corrected improper leave payments and improved documentation and compliance processes
• Strengthened purchasing policies and procedures to align with state procurement requirements
• Implemented improved oversight of payroll and financial operations
• Increased transparency and reporting for capital projects and financial activity

While substantial progress has been made, additional action is needed to fully address remaining issues related to procurement compliance and payroll controls.

The Township provided a response to the findings, which is included in the report.

Read the full report.

Sign up for OSC's newsletter.

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