ROCKAWAY TOWNSHIP, N.J. (Morris County) — Rockaway Township has saved millions of dollars and strengthened financial oversight after implementing most recommendations from a 2023 state audit, according to a follow-up report released by the New Jersey Office of the State Comptroller.
The review found the township fully implemented 13 of 15 recommendations and partially implemented the remaining two, addressing deficiencies tied to employee benefits, procurement and financial management.
The comptroller’s original audit identified issues that led to excessive costs, improper payments and limited oversight. The follow-up report said corrective actions have resulted in measurable savings and improved internal controls.
Among the financial impacts cited:
- About $1.4 million in first-year savings after switching employee prescription coverage
- Roughly $637,000 in ongoing plan cost reductions
- About $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
“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 updated policies and procedures to improve compliance with state law, including changes to employee leave policies, procurement practices and financial oversight.
Officials said reforms included updating collective bargaining agreements to align with state sick leave laws, correcting improper leave payments, strengthening purchasing procedures and increasing transparency in financial reporting and capital projects.
Two recommendations — related to procurement compliance and payroll controls — were listed as partially implemented in the report.
In a formal response, township officials disputed that classification, arguing that improvements made to insurance procurement practices comply with state law and have helped stabilize costs for taxpayers.
Township officials also said a payroll-related issue cited in the report has been resolved, noting that a previous instance involving overtime approval is no longer applicable due to a change in employee classification.
Despite those disagreements, officials said they will continue working to address remaining concerns and maintain improved financial practices moving forward.
