A New Jersey State Auditor’s report found that the state Casino Reinvestment Development Authority—charged with using casino generated funds for redevelopment projects—has been badly financially run for several years.
The report focused on accounting systems, use of funding and asset utilization, among other financial problems.
According to an analysis by the Press of Atlantic City, the audit report found:
Transactions were not always “reasonable or properly” recorded in the authority’s accounting systems.
CRDA did not “always ensure an effective and efficient” use of its funds
The authority “lacked a process to monitor compliance with contract terms resulting in overpayments, lost revenue, and potentially lost deliverables, as well as not being able to use measurable results in future contract negotiations.
“Improper uses of emergency procurement resulting in contracts being awarded to the highest bidder, improper approval of a direct investment project, improper calculation of sponsorship fees, and payment for board members’ waived compensation; all resulting in potential overpayments.”
Authority Board Chairman Robert E. Mulcahy said in a letter to the state that the board agreed with several of the report’s conclusions and disagreed with others.
“We welcome the OLS’s (Office of Legislative Services) examination and critique of our operations and financial status, and the Authority will continue to seek opportunities to improve our processes so that we may better serve our stakeholders,” Mulcahy wrote.
