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Executive Summary
The Borough of Englishtown's financial statements for the year ended December 31, 2019, were audited by Holman Frenia Allison, P.C. The audit included an examination of the Borough's various funds and account groups, including the Current Fund, Trust Fund, General Capital Fund, Water/Sewer Utility Funds, Payroll Fund, and General Fixed Asset Account Group. The auditor's report expresses an adverse opinion on the financial statements' adherence to generally accepted accounting principles (GAAP) in the United States of America, due to the Borough's use of a regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which deviates from GAAP. However, an unmodified opinion is provided on the financial statements' presentation of assets, liabilities, reserves, and fund balances on a regulatory basis.
The audit also encompassed a review of the Borough's internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements, as required by Government Auditing Standards. A separate report dated June 30, 2020, details the scope and results of this testing, with no reported instances of noncompliance or other matters requiring attention under Government Auditing Standards. The audit includes a letter of comments and recommendations addressing contracts and agreements required to be advertised by N.J.S.A.40A:11-4 and the collection of interest on delinquent taxes and assessments.
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Document Text
--- Document: 2019 Audit Document ---
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
FOR THE YEAR ENDED DECEMBER 31, 2019
EXHIBIT
PAGE
Independent Auditor’s Report
1
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
5
Financial Statements – Regulatory Basis:
Current Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
A
9
Statements of Operations and Changes in Fund Balance – Regulatory Basis
A-1
11
Statement of Revenues – Regulatory Basis
A-2
12
Statement of Expenditures – Regulatory Basis
A-3
14
Trust Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
B
21
General Capital Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
C
22
Statement of Fund Balance – Regulatory Basis
C-1
23
Water Utility Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
D
25
Statements of Operations and Changes in Fund Balance – Regulatory Basis
D-1
26
Statement of Fund Balance – Regulatory Basis
D-2
27
Statement of Revenues – Regulatory Basis
D-3
28
Statement of Appropriations – Regulatory Basis
D-4
29
Sewer Utility Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
E
30
Statements of Operations and Changes in Fund Balance – Regulatory Basis
E-1
31
Statement of Fund Balance - Regulatory Basis
E-2
32
Statement of Revenues – Regulatory Basis
E-3
33
Statement of Appropriations – Regulatory Basis
E-4
34
Payroll Fund:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
F
35
General Fixed Assets Account Group:
Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis
G
36
Notes to Financial Statements
39
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH
TABLE OF CONTENTS
PART I
EXHIBIT
PAGE
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH
TABLE OF CONTENTS
Supplemental Exhibits:
Current Fund:
Schedule of Cash - Treasurer
A-4
77
Schedule of Due from State of NJ – SC & Vets
A-5
78
Schedule of Taxes Receivable & Analysis of Property Tax Levy
A-6
79
Schedule of Tax Title Liens Receivable
A-7
80
Schedule of Foreclosed Property
A-8
81
Schedule of Revenue Accounts Receivable
A-9
82
Schedule of Due from Payroll Fund
A-10
83
Schedule of Due from Trust - Other Fund/Escrow
A-11
84
Schedule of Due from Animal Control Trust Fund
A-12
85
Schedule of 2018 Appropriation Reserves
A-13
86
Schedule of Accounts Payable
A-14
89
Schedule of Prepaid Taxes
A-15
90
Schedule of Marriage License Fees Payable
A-16
91
Schedule of Fire District Taxes Payable
A-17
92
Schedule of County Taxes Payable
A-18
93
Schedule of Regional District High School Tax
A-19
94
Schedule of Regional District School Tax
A-20
95
Schedule of Reserve for Tax Appeals Pending
A-21
96
Schedule of Reserve for Third Party Liens
A-22
97
Schedule of Municipal Special Chargees Lien Receivable
A-23
98
Schedule of Reserve for Premium on Tax Sale
A-24
99
Schedule of Reserve for Tax Overpayments
A-25
100
Schedule of Grants Receivable
A-26
101
Schedule of Reserve for Grants - Unappropriated
A-27
102
Schedule of Reserve for Grants - Appropriated
A-28
103
Trust Fund:
Schedule of Cash - Treasurer
B-1
107
Schedule of Due to Current Fund
B-2
108
Schedule of Due to State of New Jersey
B-3
109
Schedule of Encumbrances Payable
B-4
110
Schedule of Reserve for Animal Control Fund Expenditures / Dangerous Animals
B-5
111
Schedule of Due to Current Fund - Trust - Other Fund
B-6
112
Schedule of Various Reserves -Trust - Other Fund
B-7
113
EXHIBIT
PAGE
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH
TABLE OF CONTENTS
General Capital Fund:
Schedule of Cash - Treasurer
C-2
117
Schedule of Analysis of General Capital Cash
C-3
118
Schedule of State Grant Receivable
C-4
119
Schedule of Deferred Charges to Future Taxation - Funded
C-5
120
Schedule of Deferred Charges to Future Taxation - Unfunded
C-6
121
Schedule of Serial Bonds
C-7
122
Schedule of Bond Anticipation Notes
C-8
123
Schedule of Improvement Authorizations
C-9
124
Schedule of Reserve for Debt Service
C-10
125
Schedule of Capital Improvement Fund
C-11
126
Schedule of Bonds and Notes Authorized But Not Issued
C-12
127
Water Utility Fund
Schedule of Cash - Treasurer
D-5
131
Schedule of Analysis of Water Utility Capital Cash
D-6
132
Schedule of Consumer Accounts Receivable
D-7
133
Schedule of Fixed Capital
D-8
134
Schedule of 2018 Appropriation Reserves
D-9
135
Schedule Accrued Interest on Bonds
D-10
136
Schedule of Water Rent Overpayments
D-11
137
Schedule of Serial Bonds
D-12
138
Schedule of Capital Improvement Fund
D-13
139
Schedule of Reserve for Amortization
D-14
140
Schedule of Improvement Authorizations
D-15
141
Schedule of Fixed Capital Authorized and Uncompleted
D-16
142
Schedule of Deferred Reserve for Amortization
D-17
143
Schedule of Bonds and Notes Authorized But Not Issued
D-18
144
Sewer Utility Operating Fund:
Schedule of Cash – Treasurer
E-5
147
Schedule of Analysis of Sewer Utility Capital Fund Cash
E-6
148
Schedule of Sewer Rents Receivable
E-7
149
Schedule of Fixed Capital
E-8
150
Schedule of 2018 Appropriation Reserves
E-9
151
Schedule of Sewer Rent Overpayments
E-10
152
Schedule of Capital Improvement Fund
E-11
153
Schedule of Reserve for Amortization
E-12
154
Schedule of Property Acquired for Taxes
E-13
155
EXHIBIT
PAGE
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH
TABLE OF CONTENTS
Payroll Fund:
Schedule of Cash – Treasurer
F-1
159
Schedule of Due to Current Fund
F-2
160
Schedule of Payroll Deductions Payable
F-3
161
General Fixed Assets Fund:
Schedule of General Fixed Assets
G-1
165
Schedule of Financial Statement Findings - Government Auditing Standards
171
Summary Schedule of Prior Year Audit Findings and Questioned Costs as Prepared by Management
173
Letter of Comments and Recommendations - Regulatory Basis:
Officials in Office and Surety Bonds
177
Contracts and Agreements Required to be Advertised by (N.J.S.A.40A:11-4)
179
Collection of Interest on Delinquent Taxes and Assessments
180
Appreciation
181
PART III
PART II
************
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH
PART I
INDEPENDENT AUDITOR'S REPORTS
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Englishtown
County of Monmouth
Englishtown, New Jersey 07726
Report on the Financial Statements
We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory
basis of the various funds and account group of the Borough of Englishtown as of December 31, 2019 and
2018, and the related statements of operations and changes in fund balance - regulatory basis for the years
then ended, the related statements of revenues - regulatory basis, and statements of expenditures -
regulatory basis for the year ended December 31, 2019 and the related notes to the financial statements,
which collectively comprise the Borough’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles and practices prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey. Management is also responsible for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and in compliance with audit requirements prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Borough’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
1
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of
America
As described in Note 1, the financial statements are prepared by the Borough of Englishtown on the basis
of the financial reporting provisions of the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States of America, to meet the requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting
described in Note 1 and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
Adverse Opinion on Accounting Principles Generally Accepted in the United States of America
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on
U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do
not present fairly, in accordance with accounting principles generally accepted in the United States of
America, the financial position of the Borough, as of December 31, 2019 and 2018, or the results of its
operations and changes in fund balance for the years then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets,
liabilities, reserves and fund balance - regulatory basis of the various funds of the Borough, as of
December 31, 2019 and 2018, and the results of its operations and changes in fund balance - regulatory
basis of such funds for the years then ended, and the statements of revenues - regulatory basis, statements
of expenditures - regulatory basis of the various funds, and general fixed assets group of accounts –
regulatory basis, for the year ended December 31, 2019 in conformity with accounting principles and
practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey as described in Note 1.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Borough’s basic financial statements. The supplemental schedules presented for the various
funds are presented for purposes of additional analysis as required by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey and are not a required part of the basic
financial statements.
The supplemental schedules presented for the various funds are the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
2
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements of each of the respective
individual funds and account group taken as a whole.
The supplementary data and letter of comments and recommendations section has not been subject to the
auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an
opinion or provide assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 30,
2020 on our consideration of the Borough's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the Borough's
internal control over financial reporting and compliance.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P.C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Red Bank, New Jersey
June 30, 2020
3
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4
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
Honorable Mayor and Members
of the Borough Council
Borough of Englishtown
County of Monmouth
Englishtown, New Jersey 07726
We have audited, in accordance with the auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey, the financial
statements-regulatory basis of the Borough of Englishtown (herein referred to as “the Borough”), as of
and for the year ended December 31, 2019, and the related notes to the financial statements, which
collectively comprise the Borough’s basic financial statements, and have issued our report thereon
dated June 30, 2020. Our report on the financial statements-regulatory basis was modified to indicate
that the
financial statements were not prepared and presented in accordance with accounting principles generally
accepted in the United States of America but rather prepared and presented in accordance with the
regulatory basis of accounting prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States, to meet the requirements of the State of New Jersey for municipal
government entities as described in Note l .
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Borough’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the Borough’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Borough's financial statements will not be prevented, or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
5
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards or audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Borough's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards and audit requirements as prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey in considering the
Borough's internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P.C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Red Bank, New Jersey
June 30, 2020
6
BASIC FINANCIAL STATEMENTS
7
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8
EXHIBIT A
Reference
2019
2018
Assets
Operating Fund:
Cash - Treasurer
A-4
1,597,341.54
$
1,430,313.50
$
Change Fund
A
275.00
275.00
1,597,616.54
1,430,588.50
Receivables With Full Reserves:
Taxes Receivable
A-6
33.77
-
Tax Title Liens Receivable
A-7
130.08
105.93
Municipal Special Charges Lien
A-23
5,250.00
-
Foreclosed Property
A-8
318,800.00
521,958.15
Revenue Accounts Receivable
A-9
9,281.90
8,940.59
Due From:
Payroll Fund
A-10
11,983.60
11,983.60
Trust - Other Fund/Escrow
A-11
11.38
7.32
345,490.73
542,995.59
Total Operating Fund
1,943,107.27
1,973,584.09
Grant Fund:
Cash
A-4
92,167.73
88,124.35
Grants Receivable
A-26
585.00
585.00
Total Grant Fund
92,752.73
88,709.35
Total Assets
2,035,860.00
$
2,062,293.44
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
9
EXHIBIT A
Reference
2019
2018
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
Liabilities, Reserves and Fund Balance
Operating Fund:
Appropriation Reserves
A-3
215,009.03
$
201,835.61
$
Encumbrances Payable
A-3
61,724.20
73,819.52
Due To/From State of New Jersey -
Seniors' and Veterans' Deductions
A-5
350.03
350.03
Due To:
Animal Control Trust Fund
A-12
-
338.00
Accounts Payable
A-14
46,170.51
36,592.00
Prepaid Taxes
A-15
27,100.60
34,511.03
Marriage License Fees Payable
A-16
50.00
175.00
County Taxes Payable
A-18
425.11
101.62
Regional District High School Tax Payable
A-19
210,080.15
169,258.15
Regional District School Tax Payable
A-20
123,864.29
232,636.79
Reserve for:
Tax Appeals Pending
A-21
44,865.71
34,865.71
Third Party Liens
A-22
5,122.82
-
Premium on Tax Sale
A-24
31,800.00
66,400.00
Tax Overpayments
A-25
2,597.32
6,995.72
769,159.77
857,879.18
Reserve for Receivables
A
345,490.73
542,995.59
Fund Balance
A-1
828,456.77
572,709.32
1,173,947.50
1,115,704.91
Total Operating Fund
1,943,107.27
1,973,584.09
Grant Fund:
Reserve for Grants:
Unappropriated
A-27
8,568.30
5,684.35
Appropriated
A-28
84,184.43
83,025.00
Total Grant Fund
92,752.73
88,709.35
Total Liabilities, Reserves and Fund Balance
2,035,860.00
$
2,062,293.44
$
The accompanying Notes to Financial Statements are an integral part of this statement.
10
EXHIBIT A-1
2019
2018
Revenue and Other Income Realized:
Fund Balance Utilized
300,000.00
$
300,000.00
$
Miscellaneous Revenue Anticipated
610,861.45
587,520.14
Receipts From Delinquent Taxes
-
33,193.32
Receipts From Current Taxes
6,180,654.68
6,248,539.04
Non-Budget Revenue
199,995.46
39,127.17
Other Credits To Income:
Unexpended Balance of Appropriation Reserves
163,484.60
184,004.94
Cancellation of Public Assistance Reserve
-
3,341.36
Cancellation of Accounts Payable
143.22
380.94
Cancellation of Premium on Tax Sale
11,000.00
-
Interfunds Returned
7.32
8.81
Total Revenue
7,466,146.73
7,396,115.72
Expenditures:
Budget Appropriations
2,335,074.22
2,304,009.53
County Taxes
741,521.06
763,469.62
Special District Taxes
492,000.00
484,000.00
Regional District High School Tax
1,081,980.00
996,693.00
Regional District School Tax
2,259,824.00
2,477,648.00
Prior Year Senior Citizen & Veteran Deduction
-
250.00
Total Expenditures
6,910,399.28
7,026,070.15
Excess in Revenue
555,747.45
370,045.57
Fund Balance, January 1
572,709.32
502,663.75
1,128,456.77
872,709.32
Decreased By:
Utilized as Anticipated Revenue
300,000.00
300,000.00
Fund Balance, December 31
828,456.77
$
572,709.32
$
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
The accompanying Notes to Financial Statements are an integral part of this statement.
11
EXHIBIT A-2
Excess/
Budget
Realized
(Deficit)
Surplus Anticipated
300,000.00
$
300,000.00
$
-
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
6,600.00
6,856.66
256.66
Fines and Costs:
Municipal Court
190,000.00
223,211.80
33,211.80
Interest and Costs on Taxes
7,610.00
8,891.99
1,281.99
Interest on Investments and Deposits
15,000.00
50,854.71
35,854.71
Off-Duty Police Admin. Fee
9,000.00
9,000.00
-
General Capital Fund Surplus
25,000.00
25,000.00
-
Cable Franchise Fees
63,432.44
63,432.44
-
Energy Receipts Tax
133,735.00
139,371.00
5,636.00
Consolidated Municipal Property Tax
Relief Aid
8,471.00
2,835.00
(5,636.00)
Fire District Interlocal Agreement
32,760.00
32,760.00
-
Tower Lease Agreement
25,000.00
27,892.15
2,892.15
Clean Communities Program
4,000.00
4,000.00
-
Distracted Driving Grant
5,500.00
5,500.00
-
Body Armor Fund
1,136.99
1,136.99
-
Recycling Tonnage Grant
2,934.36
2,934.36
-
Click it or Ticket Grant
5,500.00
5,500.00
-
Alcohol Education Rehabilitation Program
1,684.35
1,684.35
-
Total Miscellaneous Revenues
537,364.14
610,861.45
73,497.31
Property Taxes for Support of Municipal
Budget Appropriations:
Local Tax for Municipal Purposes
1,617,216.86
1,724,700.92
107,484.06
Budget Totals
2,454,581.00
2,635,562.37
180,981.37
Non-Budget Revenue
-
199,995.46
199,995.46
2,454,581.00
$
2,835,557.83
$
380,976.83
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
12
EXHIBIT A-2
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
Revenue From Collections
6,180,654.68
$
Allocated To:
Regional District School
2,259,824.00
$
Regional District High School
1,081,980.00
County Taxes
741,521.06
Special District Taxes
492,000.00
4,575,325.06
Balance for Support of Municipal Budget Purposes
1,605,329.62
Add: Appropriation Reserve for Uncollected Taxes
119,371.30
Amount for Support of Municipal Budget
Appropriations
1,724,700.92
$
Miscellaneous Revenue Not Anticipated:
Administrative Fees
225.40
$
Accident Report
611.95
Alarm Systems
235.00
Assessor's List
70.00
CCO Inspections
6,800.00
Certified Copies
410.00
Clothing Bin
75.00
Commuter Parking Fee
120.00
DMV Inspection Fines
8,841.09
Duplicate Tax Bill
160.00
Food Handling License
1,725.00
JIF/HIF Dividend Award
51,440.00
NSF Fee
40.00
Marriage License
39.00
Peddler's License
25.00
Planning Board Fees
1,750.00
Photocopies/OPRA
5.00
Raffle/Bingo License
20.00
Refund Prior Year's Expenditures
312.57
Zoning Fees
260.00
Sale of Foreclosed Property
124,900.00
Miscellaneous
1,930.45
199,995.46
$
Analysis of Non-Budget Revenue
Analysis of Realized Revenue
The accompanying Notes to Financial Statements are an integral part of this statement.
13
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
GENERAL GOVERNMENT
Administration and Executive:
Mayor & Council
Salaries and Wages
25,000.00
$
25,000.00
$
23,250.00
$
-
$
1,750.00
$
-
$
Other Expenses
1,900.00
1,900.00
1,448.41
-
451.59
-
General Administration:
Other Expenses
7,600.00
7,600.00
3,922.02
241.12
3,436.86
-
Municipal Clerk's Office:
Salaries and Wages
44,700.00
44,700.00
44,690.82
-
9.18
-
Other Expenses
11,800.00
11,800.00
8,724.58
790.58
2,284.84
-
Elections:
Other Expenses
600.00
600.00
540.41
-
59.59
-
Annual Audit:
Other Expenses
14,350.00
14,350.00
14,040.00
-
310.00
-
Assessment of Taxes:
Salaries and Wages
12,200.00
12,200.00
12,144.87
-
55.13
-
Other Expenses
5,225.00
5,225.00
4,215.15
810.00
199.85
-
Department of Finance:
Financial Administration:
Salaries and Wages
51,500.00
51,500.00
50,844.87
-
655.13
-
Other Expenses
6,500.00
6,500.00
5,771.70
106.82
621.48
-
Collection of Taxes:
Salaries and Wages
14,450.00
15,450.00
15,302.96
-
147.04
-
Other Expenses
5,000.00
5,000.00
3,579.19
256.24
1,164.57
-
Department of Law:
Legal Services and Costs:
Other Expenses
75,000.00
75,000.00
24,957.00
11,685.00
38,358.00
-
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
The accompanying Notes to Financial Statements are an integral part of this statement.
14
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
Municipal Prosecutor:
Salaries and Wages
10,500.00
10,500.00
8,750.00
-
1,750.00
-
Department of Parks, Recreation and Social Services:
Dog Regulation:
Other Expenses
100.00
100.00
-
-
100.00
-
Insurance:
Employee Group Health
194,200.00
185,170.00
169,102.54
503.00
15,564.46
-
Health Benefits Waiver
5,000.00
8,030.00
7,500.00
-
530.00
-
Department of Public Safety:
Police:
Salaries and Wages
616,000.00
619,000.00
614,835.98
-
4,164.02
-
Other Expenses
113,700.00
113,700.00
73,273.50
40,372.52
53.98
-
Office of Emergency Management:
Other Expenses
400.00
400.00
-
-
400.00
-
Department of Community Development:
Engineering Services and Costs:
Other Expenses
13,000.00
10,000.00
6,210.92
286.00
3,503.08
-
Planning Board:
Salaries and Wages
3,260.00
3,260.00
3,250.90
-
9.10
-
Other Expenses
5,000.00
3,000.00
672.56
-
2,327.44
-
Code Enforcement:
Salaries and Wages
21,100.00
20,100.00
14,186.57
-
5,913.43
-
Other Expenses
1,000.00
1,000.00
24.45
975.00
0.55
-
Affordable Housing
Salaries and Wages
610.00
610.00
609.56
-
0.44
-
Other Expenses
1,000.00
1,000.00
-
-
1,000.00
-
The accompanying Notes to Financial Statements are an integral part of this statement.
15
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
Department of Public Works:
Public Buildings and Grounds:
Salaries and Wages
11,500.00
11,500.00
7,719.76
-
3,780.24
-
Other Expenses
40,000.00
38,500.00
31,615.67
3,163.54
3,720.79
-
Road Repairs and Maintenance:
Salaries and Wages
31,000.00
28,000.00
23,925.74
-
4,074.26
-
Other Expenses
16,000.00
16,000.00
4,949.32
777.87
10,272.81
-
Garbage and Trash Removal:
Other Expenses
157,000.00
157,000.00
124,817.93
-
32,182.07
-
Sanitary Landfill:
Other Expenses
5,000.00
5,000.00
500.00
-
4,500.00
-
Recycling:
Other Expenses
23,000.00
23,000.00
19,790.10
-
3,209.90
-
Snow Removal:
Salaries and Wages
1,500.00
1,500.00
1,500.00
-
-
-
Other Expenses
4,000.00
4,000.00
4,000.00
-
-
-
Municipal Court:
Salaries and Wages
108,500.00
108,500.00
104,567.64
-
3,932.36
-
Other Expenses
15,350.00
15,350.00
8,875.26
180.62
6,294.12
-
Public Defender
Other Expenses
3,000.00
3,000.00
-
-
3,000.00
-
Celebrating Public Events:
Other Expenses
100.00
100.00
-
-
100.00
-
Shade Tree Commission
Salaries and Wages
905.00
905.00
-
-
905.00
-
Other Expenses
1,200.00
1,200.00
95.00
-
1,105.00
-
The accompanying Notes to Financial Statements are an integral part of this statement.
16
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
UNCLASSIFIED
Utilities:
Electricity
20,000.00
20,000.00
15,463.19
331.12
4,205.69
-
Street Lighting
32,500.00
32,500.00
26,571.06
44.48
5,884.46
-
Telephone (excluding equipment acquisition)
9,000.00
9,000.00
7,347.22
-
1,652.78
-
Natural Gas
7,500.00
7,500.00
6,192.38
-
1,307.62
-
Gasoline
25,000.00
39,000.00
17,042.36
1,200.29
20,757.35
-
Water and Sewage
4,000.00
4,000.00
3,272.00
-
728.00
-
Total Operations - Within "CAPS"
1,776,750.00
1,778,250.00
1,520,093.59
61,724.20
196,432.21
-
Detail:
Salaries and Wages
952,725.00
952,725.00
925,579.67
-
27,145.33
-
Other Expenses
824,025.00
825,525.00
594,513.92
61,724.20
169,286.88
-
Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
Contribution To:
Public Employees' Retirement System
37,400.00
37,400.00
36,722.00
-
678.00
-
Police and Firemen's Retirement System of NJ
151,500.00
151,500.00
151,443.00
-
57.00
-
Defined Contribution Retirement Program
5,500.00
5,500.00
3,707.63
-
1,792.37
-
Social Security System (O.A.S.I.)
42,000.00
40,500.00
36,815.79
-
3,684.21
-
Total Deferred Charges and Statutory
Expenditures - Municipal - Within "CAPS"
236,400.00
234,900.00
228,688.42
-
6,211.58
-
The accompanying Notes to Financial Statements are an integral part of this statement.
17
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
Total General Appropriations for Municipal
Purposes - Within "CAPS"
2,013,150.00
2,013,150.00
1,748,782.01
61,724.20
202,643.79
-
Cost of Tax Appeals:
Other Expenses
10,000.00
10,000.00
10,000.00
-
-
-
Due To School Business Personal Property:
Other Expenses
13,000.00
13,000.00
12,458.00
-
542.00
-
Matching Funds for Grants
2,500.00
2,500.00
-
-
2,500.00
-
LOSAP:
Other Expenses
5,500.00
5,500.00
-
-
5,500.00
-
Recycling (N.J.S.A. 13:1E-96.5):
Other Expenses
3,300.00
3,300.00
2,445.54
-
854.46
-
Total Other Operations - Excluded from "CAPS"
34,300.00
34,300.00
24,903.54
-
9,396.46
-
Interlocal Municipal Service Agreements:
911 Emergency Service Contract with County
55,000.00
55,000.00
52,031.22
-
2,968.78
-
Fire District:
Salaries and Wages
30,000.00
30,000.00
30,000.00
-
-
-
Other Expenses
2,760.00
2,760.00
2,760.00
-
-
-
Total Interlocal Municipal Service Agreements
87,760.00
87,760.00
84,791.22
-
2,968.78
-
The accompanying Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
Public and Private Programs Offset By Revenues:
Clean Communities Program
4,000.00
4,000.00
4,000.00
-
-
-
Body Armor Fund
1,136.99
1,136.99
1,136.99
-
-
-
Alcohol Education Rehabilitation Program
1,684.35
1,684.35
1,684.35
-
-
-
Recycling Tonnage Grant
2,934.36
2,934.36
2,934.36
-
-
-
SFSP Fire District Payment
444.00
444.00
444.00
-
-
-
Click it or Ticket Grant
-
5,500.00
5,500.00
-
-
-
Distracted Driving Crackdown Grant
-
5,500.00
5,500.00
-
-
-
Total Public and Private Programs Offset By Revenues
10,199.70
21,199.70
21,199.70
-
-
-
Total Operations - Excluded from "CAPS"
132,259.70
143,259.70
130,894.46
-
12,365.24
-
Detail:
Salaries and Wages
30,000.00
30,000.00
30,000.00
-
-
-
Other Expenses
102,259.70
107,759.70
95,394.46
-
12,365.24
-
Capital Improvements - Excluded From "CAPS"
Capital Improvement Fund
15,000.00
15,000.00
15,000.00
-
-
-
Total Capital Improvements - Excluded From "CAPS"
15,000.00
15,000.00
15,000.00
-
-
-
Municipal Debt Service - Excluded From "CAPS"
Payment of Bond Principal
85,000.00
85,000.00
85,000.00
-
-
-
Interest on Bonds
68,800.00
68,800.00
68,664.52
-
-
135.48
Total Municipal Debt Service - Excluded From "CAPS"
153,800.00
153,800.00
153,664.52
-
-
135.48
The accompanying Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT A-3
Unexpended
Original
Budget After
Paid or
Balance
Budget
Modifications
Charged
Encumbered
Reserved
Canceled
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
STATEMENT OF EXPENDITURES - REGULATORY BASIS
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
Appropriations
Deferred Charges - Municipal - Excluded From "CAPS"
Unfunded Ordinance
10,000.00
10,000.00
10,000.00
-
-
-
Total Deferred Charges - Municipal - Excluded From "CAPS"
10,000.00
10,000.00
10,000.00
-
-
-
Total General Appropriations for Municipal
Purposes - Excluded From "CAPS"
311,059.70
322,059.70
309,558.98
-
12,365.24
135.48
Subtotal General Appropriations
2,324,209.70
2,335,209.70
2,058,340.99
61,724.20
215,009.03
135.48
Reserve for Uncollected Taxes
119,371.30
119,371.30
119,371.30
-
-
-
Total General Appropriations
2,443,581.00
$
2,454,581.00
$
2,177,712.29
$
61,724.20
$
215,009.03
$
135.48
$
Budget as Adopted
2,443,581.00
$
Appropriated by N.J.S. 40A:4-87
11,000.00
2,454,581.00
$
Analysis of Paid or Charged:
Cash Disbursements
2,027,585.29
$
Reserve for:
Uncollected Taxes
119,371.30
Tax Appeals Pending
10,000.00
Grants Appropriated
20,755.70
2,177,712.29
$
The accompanying Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT B
COUNTY OF MONMOUTH, NEW JERSEY
TRUST FUND
Reference
2019
2018
Assets
Animal Control Trust Fund:
Cash - Treasurer
B-1
4,551.40
$
4,953.80
$
Due from Current Fund
B-2
-
338.00
Total Animal Control Trust
4,551.40
5,291.80
Trust - Other Funds:
Cash - Treasurer
B-1
221,802.63
210,573.00
Total Trust - Other
221,802.63
210,573.00
Total Assets
226,354.03
$
215,864.80
$
Liabilities, Reserves and Fund Balance
Animal Control Trust Fund:
Due To:
State - License Fee
B-3
1.20
$
4.20
$
Reserve for Dangerous Animal
B-5
350.00
350.00
Reserve for Animal Control Fund Expenditures
B-5
4,200.20
4,937.60
4,551.40
5,291.80
Trust - Other Funds:
Due To Current Fund
B-6
11.38
7.32
Encumbrances Payable
B-7
1,666.14
1,427.70
Various Reserves
B-7
220,125.11
209,137.98
221,802.63
210,573.00
Total Liabilities, Reserves and Fund Balance
226,354.03
$
215,864.80
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
AND FUND BALANCE - REGULATORY BASIS
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to Financial Statements are an integral part of this statement.
21
EXHIBIT C
Reference
2019
2018
Assets
Cash - Treasurer
C-2,C-3
752,010.25
$
298,088.05
$
Grants Receivable
C-4
-
90,230.33
Deferred Charges To Future Taxation:
Funded
C-5
1,360,000.00
1,445,000.00
Unfunded
C-6
516,177.09
421,677.09
Total Assets
2,628,187.34
$
2,254,995.47
$
Liabilities, Reserves and Fund Balance
Serial Bonds Payable
C-7
1,360,000.00
$
1,445,000.00
$
Bond Anticipation Notes Payable
C-8
440,000.00
-
Encumbrances Payable
C-9
3,850.00
3,843.00
Reserve for Debt Service
C-10
22,500.00
22,500.00
Improvement Authorizations:
Funded
C-9
372,283.37
377,784.87
Unfunded
C-9
197,154.42
157,968.05
Capital Improvement Fund
C-11
72,302.81
62,802.81
Fund Balance
C-1
160,096.74
185,096.74
Total Liabilities, Reserves and Fund Balance
2,628,187.34
$
2,254,995.47
$
There were bonds and notes authorized but not issued on December 31, 2019 in the amount of $76,177.09 and on
December 31, 2018 in the amount of $421,677.09.
BOROUGH OF ENGLISHTOWN
DECEMBER 31, 2019 AND 2018
AND FUND BALANCE - REGULATORY BASIS
GENERAL CAPITAL FUND
COUNTY OF MONMOUTH, NEW JERSEY
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to Financial Statements are an integral part of this statement.
22
EXHIBIT C-1
Balance, December 31, 2018
185,096.74
$
Decreased By:
Anticipated in Current Fund Revenue
25,000.00
Balance, December 31, 2019
160,096.74
$
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE
The accompanying Notes to Financial Statements are an integral part of this statement.
23
EXHIBIT D
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
Reference
2019
2018
Assets
Operating Fund:
Cash - Treasurer
D-5
501,849.00
$
444,560.14
$
Cash - Change Fund
D
25.00
25.00
501,874.00
444,585.14
Receivables With Full Reserves:
Consumer Accounts Receivable
D-7
13,328.28
18,388.43
Inventory - Materials and Supplies
D
195.00
195.00
13,523.28
18,583.43
Total Operating Fund
515,397.28
463,168.57
Capital Fund:
Cash
D-5, D-6
343,326.29
345,815.29
Fixed Capital
D-8
3,209,515.50
3,208,979.73
Fixed Capital Authorized & Uncompleted
D-16
122,703.12
122,703.12
Total Capital Fund
3,675,544.91
3,677,498.14
Total Assets
4,190,942.19
$
4,140,666.71
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
AND FUND BALANCE - REGULATORY BASIS
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to Financial Statements are an integral part of this statement.
24
EXHIBIT D
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
Reference
2019
2018
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
AND FUND BALANCE - REGULATORY BASIS
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
Liabilities, Reserves and Fund Balances
Operating Fund:
Appropriation Reserves
D-4
42,314.58
$
87,336.74
$
Encumbrances Payable
D-4
14,180.10
13,921.49
Accrued Interest on Bonds
D-10
1,479.17
1,595.83
Water Rent Overpayments
D-11
1,894.13
1,073.01
Accounts Payable
D
188.94
188.94
60,056.92
104,116.01
Reserve for Receivables
D
13,328.28
18,388.43
Reserve for Inventory
D
195.00
195.00
Fund Balance
D-1
441,817.08
340,469.13
Total Operating Fund
515,397.28
463,168.57
Capital Fund:
Serial Bonds
D-12
355,000.00
390,000.00
Capital Improvement Fund
D-13
332,481.00
322,481.00
Reserve for Amortization
D-14
2,854,515.50
2,818,979.73
Improvement Authorizations:
Funded
D-15
22,703.12
22,703.12
Unfunded
D-15
87,511.00
88,750.00
Encumbrances Payable
D-15
-
11,250.00
Deferred Reserve for Amortization
D-17
22,703.12
22,703.12
Fund Balance
D-2
631.17
631.17
Total Capital Fund
3,675,544.91
3,677,498.14
Total Liabilities, Reserves and Fund Balances
4,190,942.19
$
4,140,666.71
$
There were bonds and notes authorized but not issued on December 31, 2019 in the amount of $100,000.00 and on
December 31, 2018 in the amount of $100,000.00.
The accompanying Notes to Financial Statements are an integral part of this statement.
25
EXHIBIT D-1
2019
2018
Revenue and Other Income Realized:
Fund Balance Utilized
178,800.00
$
205,700.00
$
Rents
467,680.32
438,779.61
Miscellaneous Revenue Not Anticipated
20,041.34
15,795.72
Unexpended Balance of Appropriation Reserves
74,459.63
33,315.41
Accrued Interest Cancelled
116.66
116.67
Total Revenue
741,097.95
693,707.41
Expenditures:
Operating
362,200.00
401,700.00
Capital Improvements
29,500.00
39,500.00
Debt Service
54,150.00
55,550.00
Deferred Charges and Statutory Expenditures
15,100.00
17,900.00
Total Expenditures
460,950.00
514,650.00
Excess in Revenue
280,147.95
179,057.41
Fund Balance, January 1
340,469.13
367,111.72
620,617.08
546,169.13
Decreased By:
Utilized as Anticipated Revenue
178,800.00
205,700.00
Fund Balance, December 31
441,817.08
$
340,469.13
$
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
The accompanying Notes to Financial Statements are an integral part of this statement.
26
EXHIBIT D-2
Balance, December 31, 2019 & 2018
631.17
$
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE -
The accompanying Notes to Financial Statements are an integral part of this statement.
27
EXHIBIT D-3
Excess/
Budget
Realized
(Deficit)
Surplus Utilized
178,800.00
$
178,800.00
$
-
$
Rents
327,200.00
467,680.32
140,480.32
Miscellaneous Revenue Not Anticipated
-
20,041.34
20,041.34
506,000.00
$
666,521.66
$
160,521.66
$
Analysis of Rents:
Cash Receipts
466,607.31
$
Overpayments Applied
1,073.01
467,680.32
Miscellaneous:
Interest on Investments
17,622.37
$
Interest on Delinquent Charges
2,398.97
Return Check Fees
20.00
20,041.34
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
STATEMENT OF REVENUES - REGULATORY BASIS
WATER UTILITY OPERATING FUND
COUNTY OF MONMOUTH, NEW JERSEY
The accompanying Notes to Financial Statements are an integral part of this statement.
28
EXHIBIT D-4
Original
Budget After
Paid or
Budget
Modifications
Charged
Encumbered
Reserved
Cancelled
Operating:
Salaries and Wages
89,000.00
$
89,000.00
$
80,356.13
$
-
$
8,643.87
$
-
$
Other Expenses
273,200.00
273,200.00
246,194.24
14,180.10
12,825.66
-
Total Operating
362,200.00
362,200.00
326,550.37
14,180.10
21,469.53
-
Capital Improvements:
Capital Improvement Fund
10,000.00
10,000.00
10,000.00
-
-
-
Capital Outlay
64,500.00
64,500.00
535.77
-
18,964.23
45,000.00
Total Capital Improvements
74,500.00
74,500.00
10,535.77
-
18,964.23
45,000.00
Debt Service:
Payment of Bonds
35,000.00
35,000.00
35,000.00
-
-
-
Interest on Bonds
19,200.00
19,200.00
19,150.00
-
-
50.00
Total Debt Service
54,200.00
54,200.00
54,150.00
-
-
50.00
Statutory Expenditures:
Contributions To:
Public Employees' Retirement System
7,000.00
7,000.00
6,972.00
-
28.00
-
Unemployment Compensation Insurance
100.00
100.00
100.00
-
-
-
Social Security System (O.A.S.I.)
8,000.00
8,000.00
6,147.18
-
1,852.82
-
Total Statutory Expenditures
15,100.00
15,100.00
13,219.18
-
1,880.82
-
Total Water Utility Appropriations
506,000.00
$
506,000.00
$
404,455.32
$
14,180.10
$
42,314.58
$
45,050.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
Expended
Appropriations
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
29
EXHIBIT E
Reference
2019
2018
Assets
Operating Fund:
Cash - Treasurer
E-5
733,139.56
$
639,317.91
$
Receivables With Full Reserves:
Sewer Rents Receivable
E-7
9,818.49
12,433.25
Property Acquired for Taxes
E-13
119.95
119.95
Total Operating Fund
743,078.00
651,871.11
Capital Fund:
Cash
E-5, E-6
216,035.68
206,035.68
Fixed Capital
E-8
975,636.40
975,636.40
Total Capital Fund
1,191,672.08
1,181,672.08
Total Assets
1,934,750.08
$
1,833,543.19
$
Liabilities, Reserves and Fund Balances
Operating Fund:
Appropriation Reserves
E-4
50,055.34
$
53,990.94
$
Encumbrances Payable
E-4
485.50
3,932.20
Sewer Rents Overpayments
E-10
1,584.19
1,321.44
52,125.03
59,244.58
Reserve for Receivables
E
9,938.44
12,553.20
Fund Balance
E-1
681,014.53
580,073.33
Total Operating Fund
743,078.00
651,871.11
Capital Fund:
Capital Improvement Fund
E-11
216,000.00
206,000.00
Reserve for:
Amortization
E-12
975,636.40
975,636.40
Fund Balance
E-2
35.68
35.68
Total Capital Fund
1,191,672.08
1,181,672.08
Total Liabilities, Reserves and Fund Balances
1,934,750.08
$
1,833,543.19
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY FUND
AND FUND BALANCE - REGULATORY BASIS
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to Financial Statements are an integral part of this statement.
30
EXHIBIT E-1
2019
2018
Revenue and Other Income Realized:
Fund Balance Utilized
200,000.00
$
297,800.00
$
Rents
537,193.53
532,181.09
Miscellaneous Revenue
22,141.65
17,197.51
Unexpended Balance of Appropriation Reserves
57,606.02
40,602.02
Total Revenue
816,941.20
887,780.62
Expenditures:
Operating
488,200.00
504,800.00
Capital Improvements
20,000.00
20,000.00
Statutory Expenditures
7,800.00
8,000.00
Total Expenditures
516,000.00
532,800.00
Excess in Revenue
300,941.20
354,980.62
Fund Balance, January 1
580,073.33
522,892.71
881,014.53
877,873.33
Decreased By:
Utilized as Anticipated Revenue
200,000.00
297,800.00
Fund Balance, December 31
681,014.53
$
580,073.33
$
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY OPERATING FUND
STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
The accompanying Notes to Financial Statements are an integral part of this statement.
31
EXHIBIT E-2
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2019 & 2018
35.68
$
FOR THE YEAR ENDED DECEMBER 31, 2019
STATEMENT OF FUND BALANCE -
BOROUGH OF ENGLISHTOWN
REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
32
EXHIBIT E-3
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY OPERATING FUND
Excess/
Budget
Realized
(Deficit)
Surplus Utilized
200,000.00
$
200,000.00
$
-
$
Rents
316,000.00
537,193.53
221,193.53
Miscellaneous Revenue Not Anticipated
-
22,141.65
22,141.65
516,000.00
$
759,335.18
$
243,335.18
$
Interest Earned
20,080.34
$
Delinquent Charges Interest
2,061.31
22,141.65
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
STATEMENT OF REVENUES - REGULATORY BASIS
Analysis of Miscellaneous Revenue Not Anticipated
The accompanying Notes to Financial Statements are an integral part of this statement.
33
EXHIBIT E-4
Original
Budget After
Paid or
Budget
Modifications
Charged
Encumbered
Reserved
Cancelled
Operating:
Salaries and Wages
62,000.00
$
62,000.00
$
58,012.99
$
-
$
3,987.01
$
-
$
Other Expenses
426,200.00
426,200.00
390,119.17
485.50
35,595.33
-
Total Operating
488,200.00
488,200.00
448,132.16
485.50
39,582.34
-
Capital Improvements:
Capital Improvement Fund
10,000.00
10,000.00
10,000.00
-
-
-
Capital Outlay
10,000.00
10,000.00
-
-
10,000.00
-
Total Capital Improvements
20,000.00
20,000.00
10,000.00
-
10,000.00
-
Statutory Expenditures:
Contributions To:
Public Employees' Retirement System
2,800.00
2,800.00
2,789.00
-
11.00
-
Unemployment Compensation Insurance
100.00
100.00
100.00
-
-
-
Social Security System (O.A.S.I.)
4,900.00
4,900.00
4,438.00
-
462.00
-
Total Statutory Expenditures
7,800.00
7,800.00
7,327.00
-
473.00
-
Total Sewer Utility Appropriations
516,000.00
$
516,000.00
$
465,459.16
$
485.50
$
50,055.34
$
-
$
Appropriations
Expended
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
FOR THE YEAR ENDED DECEMBER 31, 2019
SEWER UTILITY FUND
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
34
EXHIBIT F
COUNTY OF MONMOUTH, NEW JERSEY
PAYROLL FUND
Reference
2019
2018
Assets
Cash
F-1
42,127.76
$
28,071.69
$
Total Assets
42,127.76
$
28,071.69
$
Liabilities and Reserves
Due To Current Fund
F-2
11,983.60
$
11,983.60
$
Payroll Taxes Payable
F-3
30,144.16
16,088.09
Total Liabilities and Reserves
42,127.76
$
28,071.69
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
STATEMENTS OF ASSETS, LIABILITIES AND RESERVES -
REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
35
EXHIBIT G
Reference
2019
2018
Assets
Land
G-1
2,039,400.00
$
2,039,400.00
$
Buildings
G-1
510,300.00
510,300.00
Equipment
G-1
1,032,558.19
1,032,558.19
Total Assets
3,582,258.19
$
3,582,258.19
$
Fund Balance
Investment in Fixed Assets
G-1
3,582,258.19
$
3,582,258.19
$
Total Fund Balance
3,582,258.19
$
3,582,258.19
$
DECEMBER 31, 2019 AND 2018
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL FIXED ASSETS ACCOUNT GROUP
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
36
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
37
This page intentionally left blank
38
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies
Description of Financial Reporting Entity
The Borough of Englishtown, County of Monmouth, New Jersey (“Borough”) operates under the
Borough form of New Jersey municipal government, and is governed by a mayor and 6-member Borough
Council. The financial statements of the Borough include every board, body, officer or commission
maintained wholly or in part by funds appropriated by the Borough, as required by the provision of N.J.S.
40A:5-5.
Component Units - GASB Statement 14, as amended by GASB Statements 39, 61, 80, and 90,
establishes criteria to be used in determining the component units, which should be included in the
financial statements of a primary government. The financial statements of the Borough are not presented
in accordance with GAAP (as discussed below). Therefore, the Borough had no component units as
defined by GASB Statement No. 14, as amended by GASB Statements 39, 61, 80, and 90.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the
Borough of Englishtown contain all funds and account groups in accordance with the “Requirements of
Audit” as promulgated by the State of New Jersey, Department of Community Affairs, Division of Local
Government Services. The principles and practices established by the Requirements of Audit are
designed primarily for determining compliance with legal provisions and budgetary restrictions and as a
means of reporting on the stewardship of public officials with respect to public funds. Generally, the
financial statements are presented using the flow of current financial resources measurement focus and
modified accrual basis of accounting with minor exceptions as mandated by these “Requirements”. In
addition, the prescribed accounting principles previously referred to differ in certain respects from
accounting principles generally accepted in the United State of America applicable to local government
units. The more significant differences are explained in this Note.
In accordance with the “Requirements”, the Borough of Englishtown accounts for its financial
transactions through the use of separate funds, which are described as follows:
Current Fund – the Current Fund accounts for resources and expenditures for governmental
operations of a general nature, including Federal and State grant funds.
Trust Fund – the various Trust Funds account for receipts, custodianship and disbursement of
funds in accordance with the purpose for which each reserve was created.
General Capital Fund – the General Capital Fund accounts for receipt and disbursement of
funds for the acquisition of general capital facilities, other than those acquired in the Current
Fund.
Water/Sewer Utility Operating and Capital Funds - are used to account for water/sewer operations
that are financed through user fees. The funds are operated on a basis similar to private business
enterprises where the intent is that the costs of providing the water/sewer utility to the general public
be financed through user fees. Operations relating to the acquisition of water/sewer capital facilities
are recorded within the Water/Sewer Utility Capital Fund.
39
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
General Fixed Asset Account Group – The Fixed Asset Account Group of accounts is utilized
to account for property, land, buildings, and equipment that have been acquired by other funds of
the Borough.
Payroll Fund - is used to account for the payroll activity of all of the funds and the disbursement of
payroll withholdings to the various cognizant agencies.
Budgets and Budgetary Accounting - The Borough of Englishtown must adopt an annual budget for its
Current Fund in accordance with N.J.S.A.40A:4 et seq. N.J.S.A.40A:4-5 requires the governing body to
introduce and approve the annual municipal budget no later than February 10th of each year. At
introduction, the governing body must fix the time and place for a public hearing on the budget and must
advertise the time and place at least ten days prior to the hearing in a newspaper published and circulating
in the municipality. The public hearing must not be held less than twenty-eight days after the date the
budget was introduced. After the hearing has been held, the governing body may, by majority vote, adopt
the budget or may amend the budget in accordance with N.J.S.A.40A:4-9. Amendments to adopted
budgets, if any are detailed in the statements of revenues and expenditures.
An extension of the statutory dates for introduction, approval and adoption of the municipal budget may
be granted by the Director of Local Government Services, with the permission of the Local Finance
Board. Budgets are adopted on the same basis of accounting utilized for the preparation of the Borough’s
financial statements. Once a budget is approved it may be amended after November 1, by a resolution
adopted by the governing body.
Cash, Cash Equivalents and Investments - Cash and Cash equivalents include petty cash, change funds
and cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of
the date of maturity. Investments are stated at cost. Consequently, unrealized gain or loss on investments
has not been recorded in accordance with Governmental Accounting Standards Board Statement No. 31.
New Jersey municipal units are required by N.J.S.A.40A:5-14 to deposit public funds in a bank or trust
company having its place of business in the State of New Jersey and organized under the laws of the
United States or of the State of New Jersey or in the New Jersey Cash Management Fund. N.J.S.A.40A:5-
15.1 provides a list of investments, which may be purchased by New Jersey municipal units. In addition,
other State statutes permit investments in obligations issued by local utilities and other state agencies.
N.J.S.A.17:9-41 et seq. establishes the requirements for the security of deposits of governmental units.
The statute requires that no governmental unit shall deposit public funds in a public depository unless
such funds are secured in accordance with the Governmental Unit Deposit Protection Act, which was
enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking
institution in New Jersey. Public depositories include State or federally chartered banks savings banks or
associations located in or having a branch office in the State of New Jersey, the deposits of which are
federally insured. All public depositories must pledge collateral, having a market value at least equal to
40
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
five percent of the average daily balance of collected public funds, to secure the deposits of Governmental
Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public
depositories, is available to pay the amount of their deposits to the Governmental Units. The cash
management plan adopted by the Borough of Englishtown requires it to deposit funds in public
depositories protected from loss under the provisions of the Act.
Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded
by all funds affected by such transactions in the period in which the transaction is executed. Interfund
receivables in the Current Fund are recorded with offsetting reserves, which are created by charges to
operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the
other funds are not offset by reserves.
Inventories and Supplies - The cost of inventories of supplies for all funds are recorded as expenditures
at the time individual items are purchased. The costs of inventories are not included on the various
balance sheets of assets, liabilities, reserves and fund balance.
General Fixed Assets – Accounting for governmental fixed assets, as required by N.J.A.C.5:30-5.6,
differs in certain respects from accounting principles generally accepted in the United States of America.
In accordance with the regulations, all local units, including municipalities, must maintain a general fixed
assets reporting system that establishes and maintains a physical inventory of nonexpendable, tangible
property as defined and limited by the U.S. Office of Management and Budget Circular A-87 (Attachment
B, Section 19), except that the useful life of such property is at least five years. The Borough has adopted
a capitalization threshold of $2,000.00. Generally, assets are valued at historical cost; however, assets
acquired prior to December 31, 1985 are valued at actual historical cost or estimated historical cost. In
some instances, assets are valued at the assessed valuation of the property at the time of acquisition,
which approximates fair value. No depreciation of general fixed assets is recorded. Donated general
fixed assets are recorded at their acquisition value as of the date of the transaction. Interest costs relative
to the acquisition of general fixed assets are recorded as expenditures when paid. Public domain
("infrastructure") general fixed assets consisting of certain improvements such as roads, bridges, curbs
and gutters, streets and sidewalks and drainage systems are not capitalized. Expenditures for construction
in progress are recorded in the capital funds until such time as the construction is completed and put into
operation. The Borough is required to maintain a subsidiary ledger detailing fixed assets records to
control additions, retirements, and transfers of fixed assets. In addition, a statement of general fixed
assets, reflecting the activity for the year, must be included in the Borough's basic financial statements.
The regulations require that general fixed assets, whether constructed or acquired through purchase, grant
or gift be included in the aforementioned inventory. In addition, property management standards must be
maintained that includes accurate records indicating asset description, source, ownership, acquisition cost
and date, the percentage of federal participation (if any), and the location, use, and condition of the asset.
Periodically, physical inventories must be taken and reconciled with these records. All fixed assets must
be adequately controlled to safeguard against loss, damage, or theft.
Utility Fixed Assets – Property and equipment purchases by a utility fund are recorded in the utility
capital account at cost and are adjusted for disposition. The amounts shown do not represent replacement
cost or current value. The reserve for amortization and deferred reserve for amortization in the utility
capital fund represent the cost of the utility fixed assets reduced by the outstanding balances of bonds.
41
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
loans, notes, or other borrowings that are attributable to the acquisition, construction or improvement of
those assets.
Foreclosed property – Foreclosed Property or “Property Acquired for Taxes” is recorded in the Current
Fund at the assessed valuation when such property was acquired and is fully reserved. Ordinarily it is the
intention of the Borough to resell foreclosed property in order to recover all or a portion of the delinquent
taxes or assessments and to return the property to a taxpaying basis. For this reason the value of
foreclosed property has not been included in the General Fixed Assets Account Group. If such property
is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group
Deferred Charges – The recognition of certain expenditures is deferred to future periods. These
expenditures or deferred charges are generally overexpenditures of legally adopted budget appropriations
or emergency appropriations made in accordance with N.J.S.A.40A:4-46 et seq. Deferred charges are
subsequently raised as items of appropriation in budgets of succeeding years.
Fund Balance – Fund Balance included in the Current Fund and Utility Operating Fund represent the
amount available for anticipation as revenue in future year’s budgets, with certain restrictions.
Revenues – are recorded when received in cash except for certain amounts, which are due from other
governmental units. Revenue from Federal and State grants are realized when anticipated as such in the
Borough’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement
of assets, liabilities, reserves and fund balance of the Borough’s Current Fund; accordingly, such amounts
are not recorded as revenue until collected. Other amounts that are due the Borough, which are
susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues
when received.
Utility Revenues – Utility charges are levied quarterly based upon a flat service charge and if applicable,
an excess consumption or usage charge. Revenues from these sources are recognized on a cash basis.
Receivables that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of
the Boroughs utility operating fund.
Property Tax Revenues – are collected in quarterly installments due February 1, May 1, August 1 and
November 1. The amount of tax levied includes not only the amount required in support of the
Borough’s annual budget, but also the amounts required in support of the budgets of the County of
Monmouth, Manalapan-Englishtown Regional School District, Freehold Regional High School District
and Englishtown Fire District #1. Unpaid property taxes are subject to tax sale in accordance with
statutes.
County Taxes – The municipality is responsible for levying, collecting and remitting County taxes for
the County of Monmouth. Operations are charged for the amount due the County for the year, based
upon the ratables required to be certified to the County Board of Taxation by May 5th of the current year.
In addition, operations is charged for the County share of Added and Omitted Taxes certified to the
County Board of Taxation by October 10th of the current year and due to be paid to the County by
February 15th of the following year.
42
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the
Manalapan-Englistown Regional School District and its share of the Freehold Regional School District.
Operations are charged for the full amount required to be raised from taxation to operate the local and
regional school district July 1 to June 30.
Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year
(July 1 to June 30) which remain unpaid at December 31 of the calendar year levied may be deferred to
fund balance to the extent of not more than 50% of the annual levy providing no requisition has been
made by the school district for such amount.
Reserve for Uncollected Taxes – The inclusion of the “Reserve for Uncollected Taxes” appropriation in
the Borough’s annual budget protects the Borough from taxes not paid currently. The Reserve, the
minimum amount of which is determined on the percentage of collections experienced in the immediate
preceding year, with certain exceptions, is required to provide assurance that cash collected in the current
year will provide sufficient cash flow to meet expected obligations.
Expenditures – are recorded on the “budgetary” basis of accounting. Generally, expenditures are
recorded when an amount is encumbered through the issuance of a numerically controlled purchase order
or when a contract is executed as required by Technical Accounting Directive No. 85-1. When an
expenditure is paid, the amount encumbered is simultaneously liquidated in its original amount.
Encumbrances are offset by an account entitled reserve for encumbrances. The reserve is classified as a
cash liability under New Jersey municipal accounting. At December 31, this reserve represents the
portion of appropriation reserves that has been encumbered and is subject to the same statutory provisions
as appropriation reserves. Appropriations for interest payments on outstanding general capital bonds and
notes are provided on the cash basis. Appropriations for interest payments on outstanding utility capital
bonds and notes are provided on the accrual basis.
Appropriation Reserves – Appropriation reserves covering unexpended appropriation balances are
automatically created at year-end and recorded as liabilities, except for amounts, which may be cancelled
by the governing body. Appropriation reserves and reserve for encumbrances at current year end are
available until December 31st of the succeeding year to meet specific claims, commitments or contracts
incurred during the preceding year. Any unspent balances at this time are lapsed appropriation reserves
and recorded as income.
Long-Term Debt - Long-Term Debt relative to the acquisition of capital assets, is recorded as a liability
in the General and Utility Capital Fund. Where an improvement is a “local improvement”, i.e. assessable
upon completion, long-term debt associated with that portion of the cost of the improvement to be funded
by assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the
improvement is fully and permanently funded.
Compensated Absences – Expenditures relating to obligations for unused vested accumulated vacation
and sick leave are not recorded until paid; however, municipalities may establish and budget reserve
funds subject to NJSA 40A:4-39 for the future payment of compensated absences.
Recent Accounting Pronouncements – The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles. GASB has recently adopted accounting statements to be used by governmental units when
43
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
reporting financial position and results of operations in accordance with accounting principles generally
accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do not
prepare financial statements in accordance with GAAP and thus do not comply with all of the GASB
pronouncements.
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt
obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. In
accordance with GASB Statement 95 noted below the requirements of this Statement will be effective for
reporting periods subsequent to the date of this report. Management does not expect this Statement to
have a material impact to the Municipality’s financial statements.
Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance, provides
temporary relief to governments and other stakeholders in light of COVID-19 pandemic. That objective is
accomplished by postponing the effective dates of certain provisions in Statements and Implementation
Guides that first became effective or are scheduled to become effective for periods beginning after June
15, 2018 and later.
Note 2. Deposits and Investments
The Borough is governed by the deposit and investment limitations of New Jersey state law.
Deposits
Custodial credit risk is the risk that, in the event of a bank failure, the Borough’s deposits may not be
returned. Although the Borough does not have a formal policy regarding custodial credit risk, NJSA
17:9-41 et seq. requires that the governmental units shall deposit public funds in public depositories
protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA).
GUDPA is a supplemental insurance program set forth by the New Jersey Legislature to protect the
deposits of local governmental agencies. The program is administered by the Commissioner of the New
Jersey Department of Banking and Insurance. Under the Act, the first $250,000 of governmental deposits
in each insured depository is protected by FDIC. Public funds owned by the Borough in excess of FDIC
insured amounts are protected by GUDPA. However, GUDPA does not protect intermingled trust funds
such as salary withholdings, bail funds or funds that may pass to the Borough relative to the happening of
a future condition. Such funds are shown as Uninsured and Uncollateralized in the schedule below.
As of December 31, 2019, the Borough’s bank balance of $4,684,695.64 was insured or collateralized as
follows:
Insured under FDIC and GUDPA
4,360,261.86
$
NJ Cash Management Fund
52,057.35
Uninsured and Uncollateralized
272,376.43
4,684,695.64
$
Investments
The Borough had no investments as of December 31, 2019.
44
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 3. Property Taxes
The following is a three-year comparison of certain statistical information relative to property taxes and
property tax collections for the current and previous two years.
Comparison Schedule of Tax Rates
2019
2018
2017
Tax Rate
2.415
$
2.554
$
2.453
$
Apportionment of Tax Rate:
Municipal
0.631
0.632
0.621
County General
0.289
0.308
0.290
Regional District School
0.881
0.998
0.933
Regional High School
0.422
0.420
0.414
Fire District
0.192
0.196
0.195
Year
Amount
2019
256,456,600.00
$
2018
248,186,000.00
2017
242,616,500.00
Assessed Valuation
Comparison of Tax Levies and Collections
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2019
6,196,972.53
$
6,180,654.68
$
99.73%
2018
6,294,835.85
6,248,539.04
99.26%
2017
5,993,909.79
5,950,081.85
99.26%
Delinquent Taxes and Tax Title Liens
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2019
130.08
$
33.77
$
163.85
$
0.00%
2018
105.93
-
105.93
0.00%
2017
68,957.82
32,943.32
101,901.14
1.70%
The last tax sale was held on December 19, 2019.
45
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 4. Property Acquired By Tax Title Lien Liquidation
The value of properties acquired by liquidation of tax title liens based on the last assessed valuation of
such properties as of December 31, was as follows:
Year
Amount
2019
318,800.00
$
2018
521,958.15
2017
100.00
Note 5. Water and Sewer Utility Service Charges
The following is a three-year comparison of water and sewer utility charges (rents) for the current and
previous two years:
Water Utility
Cash
Percentage Of
Year
Beginning Balance
Levy
Total
Collections
Collection
2019
18,388.43
$
462,620.17
$
481,008.60
$
467,680.32
$
97.22%
2018
10,037.59
447,130.45
457,168.04
438,779.61
95.97%
2017
32,318.58
470,143.35
502,461.93
492,424.34
98.00%
Sewer Utility
Cash
Percentage Of
Year
Beginning Balance
Levy
Total
Collections
Collection
2019
12,433.25
$
534,578.77
$
547,012.02
$
537,193.53
$
98.20%
2018
10,428.75
534,185.59
544,614.34
532,181.09
97.71%
2017
23,180.41
533,664.85
556,845.26
546,416.51
98.12%
46
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 6. Fund Balances Appropriated
The following schedule details the amount of fund balances available at the end of the current year and
two previous years and the amounts utilized in the subsequent year’s budgets:
Utilized in
Percentage
Balance
Budget of
of Fund
Year
December 31,
Succeeding Year
Balance Used
Current Fund:
2019
828,456.77
$
400,000.00
$
48.28%
2018
572,709.32
300,000.00
52.38%
2017
502,663.75
300,000.00
59.68%
Water Utility Operating Fund:
2019
441,817.08
$
194,600.00
$
44.05%
2018
340,469.13
178,800.00
52.52%
2017
367,111.72
205,700.00
56.03%
Sewer Utility Operating Fund:
2019
681,014.53
$
191,000.00
$
28.05%
2018
580,073.33
200,000.00
34.48%
2017
522,892.71
297,800.00
56.95%
Note 7. Disaggregated Receivable and Payable Balances
There are no significant components of receivable and payable balances reported in the financial
statements.
Note 8. Interfund Receivables and Payables
The following interfund balances were recorded on the various statements of assets, liabilities, reserves
and fund balance as of December 31, 2019:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
11,994.98
$
-
$
Animal Control Trust
-
11.38
Payroll Trust Fund
-
11,983.60
11,994.98
$
11,994.98
$
The interfund receivables and payables above predominately resulted from payment made by certain
funds on behalf of other funds. All interfund balances are expected to be repaid within one year.
47
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 8. Interfund Receivables and Payables (continued)
The summary of interfund transfers follows:
Transfers
Transfers
Fund
In
Out
Current Fund
2,842.91
$
3,177.65
$
Animal Control Trust
3,048.26
2,710.26
Trust Other Fund
129.39
132.65
Payroll Trust Fund
36,236.12
36,236.12
42,256.68
$
42,256.68
$
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to
other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no
bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted
revenue in another.
Note 9. Pension Obligations
A. Public Employees’ Retirement System (PERS)
Plan Description - The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PERS, please refer to
Division's
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and
disability benefits. All benefits vest after ten years of service.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4
members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are
available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25 or more years of service
credit before age 62 and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced
by a fraction of a percent for each month that a member retires prior to the age at which a member can
receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive
an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is
available to members who have at least 10 years of service credit and have not reached the service
retirement age for the respective tier.
48
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Basis of Presentation - The schedules of employer and nonemployer allocations and the schedules of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PERS or its participating employers. Accordingly, they
do not purport to be a complete presentation of the financial position or changes in financial position of
PERS or the participating employers. The accompanying Schedules were prepared in accordance with
U.S. generally accepted accounting principles. Such preparation requires management of PERS to make a
number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these
estimates, actual results could differ from those estimates.
Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's pension contribution is based on an actuarially determined amount, which
includes the employer portion of the normal cost and an amortization of the unfunded accrued liability.
Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year
2019, the State's pension contribution was less than the actuarial determined amount. The local
employers' contribution amounts are based on an actuarially determined rate, which includes the normal
cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of
PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments
due in State fiscal year 2009. Such employers will be credited with the full payment and any such
amounts will not be included in their unfunded liability. The actuaries will determine the unfunded
liability of those retirement systems, by employer, for the reduced normal and accrued liability
contributions provided under this law. This unfunded liability will be paid by the employer in level
annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June
30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended
December 31, 2019, the Borough’s contractually required contribution to PERS plan was $43,964.
Components of Net Pension Liability - At December 31, 2019, the Borough’s proportionate share of the
PERS net pension liability was $814,393. The net pension liability was measured as of June 30, 2019.
The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2018, which
was rolled forward to June 30, 2019. The Borough’s proportion of the net pension liability was based on
the Borough’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2019. The Borough’s proportion measured as of June 30, 2019,
was 0.0045197650% which was an increase of 0.0001357250% from its proportion measured as of June
30, 2018.
12/31/2019
12/30/2018
Actuarial valuation date (including roll forward)
June 30, 2019
June 30, 2018
Deferred Outflows of Resources
127,660
$
170,879
$
Deferred Inflows of Resources
433,772
467,289
Net Pension Liability
814,393
863,195
Borough's portion of the Plan's total Net Pension Liability
0.00452%
0.00438%
Balances at December 31, 2019 and December 31, 2018
49
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2019, the Borough’s
proportionate share of the PERS expense, calculated by the plan as of the June 30, 2019 measurement
date is $5,405.This expense is not recognized by the Borough because of the regulatory basis of
accounting as described in Note 1, but as previously mentioned the Borough contributed $43,964 to the
plan in 2019.
At December 31, 2019, the Borough reported deferred outflows of resources and deferred inflows of
resources related to PERS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
14,617
$
3,598
$
Changes of Assumptions
81,320
282,673
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
12,856
Changes in Proportion and Differences
between Borough Contributions and
Proportionate Share of Contributions
31,723
134,645
127,660
$
433,772
$
The Borough will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
50
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
5.63
-
June 30, 2019
5.21
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
June 30, 2019
-
5.21
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
June 30, 2015
5.72
5.72
June 30, 2016
5.57
5.57
June 30, 2017
5.48
5.48
June 30, 2018
5.63
5.63
June 30, 2019
5.21
5.21
51
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PERS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2020
(61,229)
$
2021
(105,285)
2022
(93,540)
2023
(44,074)
2024
(1,984)
(306,112)
$
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through 2026
2.00 - 6.00% Based on Years of Service
Thereafter
3.00 - 7.00% Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 General Classification Headcount weighted mortality
PERS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Pub-2010 Safety Classification Headcount weighted mortality
PFRS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2014 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee
Mortality Table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were
based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%
adjustment for males and 99.7% adjustment for females, and with future improvement from the base year
of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were based on
the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males and
117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2019.
52
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 to June 30, 2018. It is likely that future experience will not
exactly conform to these assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience
deviates, the larger the impact on future financial statements.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2019) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PERS’s target asset allocation as of June
30, 2019 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash Equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S. Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.28% as of June 30,
2019. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.50% as of June 30, 2019 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers will be based on 70% of the actuarially determined contributions for
the State employer and 100% of actuarially determined contributions for the local employers. Based on
those assumptions, the plan’s fiduciary net position was projected to be available to make projected future
53
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
benefit payments of current plan members through 2057. Therefore, the long-term expected rate of return
on plan investments was applied to projected benefit payments through 2057 and the municipal bond rate
was applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Borough’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Borough’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Borough’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.28%) or 1-percentage-point higher (7.28%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.28%)
(6.28%)
(7.28%)
Borough's Proportionate Share
of the Net Pension Liability
1,035,867
$
814,393
$
638,209
$
B. Police and Firemen’s Retirement System (PFRS)
Plan Description – The State of New Jersey, Police and Firemen’s Retirement System (PFRS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PFRS, please refer to
the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death
and disability benefits. All benefits vest after ten years of service, except disability benefits which vest
after four years of service.
The following represents the membership tiers for PFRS:
Tier
Definition
1
Members who were enrolled prior to May 22, 2010.
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1 % for each year if creditable service over 25 years but not to exceed 30 years.
Members may elect deferred retirement benefits after achieving ten years of service, in which case
benefits would begin at age 55 equal to 2% of final compensation for each year of service.
54
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Basis of Presentation - The schedule of employer and nonemployer allocations and the schedule of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PFRS, its participating employers or the State as a
nonemployer contributing entity. Accordingly, they do not purport to be a complete presentation of the
financial position or changes in financial position of PFRS, the participating employers, or the State. The
accompanying Schedules were prepared in accordance with U.S. generally accepted accounting
principles. Such preparation requires management of PFRS to make a number of estimates and
assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results
could differ from those estimates.
Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's contribution amount is based on an actuarially determined rate which includes
the normal cost and unfunded accrued liability. For fiscal year 2019, the State contributed an amount less
than the actuarially determined amount. The Local employers’ contribution amounts are based on an
actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19,
P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued
liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be
credited with the full payment and any such amounts will not be included in their unfunded liability. The
actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced
normal and accrued liability contributions provided under this law. This unfunded liability will be paid by
the employer in level annual payments over a period of 15 years beginning with the payments due in the
fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets.
For the year ended December 31, 2019, the Borough’s contractually required contributions to PFRS plan
was $120,923.
Net Pension Liability and Pension Expense - At December 31, 2019 the Borough’s proportionate share
of the PFRS net pension liability was $1,465,022. The net pension liability was measured as of June 30,
2019. The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2018, to the
measurement date of June 30, 2019. The Borough’s proportion of the net pension liability was based on
the Borough’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2019. The Borough’s proportion measured as of June 30, 2019,
was 0.0119712634%, which was a decrease of 0.0029613197% from its proportion measured as of June
30, 2018.
12/31/2019
12/31/2018
Actuarial valuation date (including roll forward)
June 30, 2019
June 30, 2018
Deferred Outflows of Resources
258,540
$
482,652
$
Deferred Inflows of Resources
900,506
594,373
Net Pension Liability
1,465,022
2,020,625
Borough's portion of the Plan's total net pension Liability
0.01197%
0.01493%
Balances at December 31, 2019 and Decmber 31, 2018
55
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2019, the
Borough’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2019
measurement date was $95,567. This expense is not recognized by the Borough because of the regulatory
basis of accounting as described in Note 1, but as previously mentioned the Borough contributed
$120,923 to the plan in 2019.
At December 31, 2019, the Borough had deferred outflows of resources and deferred inflows of resources
related to PFRS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
12,367
$
9,275
$
Changes of Assumptions
50,200
473,482
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
19,851
Changes in Proportion and Differences
between Borough Contributions and
Proportionate Share of Contributions
195,973
397,898
258,540
$
900,506
$
The Borough will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
56
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
-
5.53
June 30, 2016
-
5.58
June 30, 2017
5.59
-
June 30, 2018
5.73
-
June 30, 2019
-
5.92
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
June 30, 2019
-
5.92
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
-
5.00
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.17
6.17
June 30, 2015
5.53
5.53
June 30, 2016
5.58
5.58
June 30, 2017
5.59
5.59
June 30, 2018
5.73
5.73
June 30, 2019
5.92
5.92
57
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PFRS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2020
(136,042)
$
2021
(158,174)
2022
(186,613)
2023
(59,250)
2024
(101,887)
(641,966)
$
Special Funding Situation – Under N.J.S.A. 43:16A-15, local participating employers are responsible
for their own contributions based on actuarially determined amounts, except where legislation was passed
which legally obligated the State if certain circumstances occurred. The legislation which legally
obligates the state is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001,
Chapter 511, P.L, 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The
amounts contributed on behalf of the local participating employers under this legislation is considered to
be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a non-
employer contributing entity. Since the local participating employers do not contribute under this
legislation directly to the plan (except for employer specific financed amounts), there is no net pension
liability to report in the financial statements of the local participating employers related to this legislation.
Additionally, the State’s proportionate share of the PFRS net pension liability attributable to the Borough
is $231,330 as of December 31, 2019. The net pension liability was measured as of June 30, 2019. The
total pension liability used to calculate the net pension liability was determined using update procedures
to roll forward the total pension liability from an actuarial valuation as of July 1, 2018, to the
measurement date of June 30, 2019. The State’s proportion of the net pension liability associated with the
Borough was based on a projection of the Borough’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating members, actuarially determined. The State’s
proportion measured as of June 30, 2019 was 0.0119712634%, which was a decrease of 0.0029613197%
from its proportion measured as of June 30, 2018, which is the same proportion as the Borough’s. At
December 31, 2019, the Borough’s and the State of New Jersey’s proportionate share of the PFRS net
pension liability were as follows:
Borough's Proportionate Share of Net Pension Liability
1,465,022
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Borough
231,330
1,696,352
$
58
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
At December 31, 2019, the State’s proportionate share of the PFRS expense, associated with the Borough,
calculated by the plan as of the June 30, 2019 measurement date was $26,879.
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 - 15.25%
Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 General Classification Headcount weighted mortality
PERS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Pub-2010 Safety Classification Headcount weighted mortality
PFRS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2013 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table with a
105.6% adjustment for males and 102.5% adjustment for females, and with future improvement from the
base year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010
Safety Retiree Below-Median Income Weighted mortality table with a 96.7% adjustment for males and
96.0% adjustment for females, and with future improvement from the base year of 2010 on a generational
basis. For beneficiaries (contingent annuitants), the Pub-2010 General Retiree Below-Median Income
Weighted mortality table was used, unadjusted, and with future improvement from the base year of 2010
on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled Retiree mortality
table with a 152.0% adjustment for males and 109.3% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Mortality improvement is based on
Scale MP-2019.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 to June 30, 2018.
59
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2019) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PFRS’s target asset allocation as of June
30, 2019 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash Equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S. Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.85% as of June 30,
2019. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.50% as of June 30, 2019 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers and the nonemployer contributing entity will be based on 70% of the
actuarially determined contributions for the State employer and 100% of actuarially determined
contributions for local employers. Based on those assumptions, the plan’s fiduciary net position was
projected to be available to make projected future benefit payments of current plan members through
2076. Therefore, the long-term expected rate of return on plan investments was applied to projected
benefit payments through 2076 and the municipal bond rate was applied to projected benefit payments
after that date in determining the total pension liability.
Sensitivity of the Borough’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Borough’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Borough’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.85%) or 1-percentage-point higher (7.85%) than the current rate:
60
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
1%
Current
1%
Decrease
Discount Rate
Increase
(5.85%)
(6.85%)
(7.85%)
Borough's Proportionate Share
of the Net Pension Liability
1,980,176
$
1,465,022
$
1,038,658
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Borough
312,674
231,330
164,006
2,292,850
$
1,696,352
$
1,202,664
$
Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued
by the Borough.
Note 10. Postemployment Benefits Other Than Pensions
General Information about the OPEB Plan
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple-
employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It
covers employees of local government employers that have adopted a resolution to participate in the Plan.
For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be
found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally
administered retirement system and a period of service of up to 25 years with the employer at the time of
retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of
service with the employer. Further, the law provides that the employer paid obligations for retiree
coverage may be determined by means of a collective negotiations agreement.
61
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 10. Postemployment Benefits Other Than Pensions (continued):
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides
medical and prescription coverage to local police officers and firefighters, who retire with 25 years of
service or on a disability from an employer who does not provide postretirement medical coverage. Local
employers were required to file a resolution with the Division in order for their employees to qualify for
State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree
health benefits to survivors of local police officers and firefighters who die in the line of duty under
Chapter 271, P.L.1989.
Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have
less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost
of their health care coverage in retirement provided they retire with 25 or more years of pension service
credit. The percentage of the premium for which the retiree will be responsible will be determined based
on the retiree’s annual retirement benefit and level of coverage.
Basis of Presentation
The schedule of employer and nonemployer allocations and the schedule of OPEB amounts by employer
and nonemployer (collectively, the Schedules) present amounts that are considered elements of the
financial statements of its participating employers or the State as a nonemployer contributing entity.
Accordingly, they do not purport to be a complete presentation of the financial position or changes in
financial position of the participating employers or the State. The accompanying Schedules were prepared
in accordance with U.S. generally accepted accounting principles. Such preparation requires management
of the Plan to make a number of estimates and assumptions relating to the reported amounts. Due to the
inherent nature of these estimates, actual results could differ from those estimates.
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate
share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred
inflows of resources, and collective OPEB (benefit) expense. The special funding situation’s and
nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of
resources, and OPEB (benefit) expense are based on separately calculated total OPEB liabilities. For the
special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year
ended June 30, 2019 were $5,637,151,775.00 and $8,182,092,807.00, respectively. The nonspecial
funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and
OPEB (benefit) expense are further allocated to employers based on the ratio of the plan members of an
individual employer to the total members of the Plan’s nonspecial funding situation during the
measurement period July 1, 2018 through June 30, 2019. Employer and nonemployer allocation
percentages have been rounded for presentation purposes; therefore, amounts presented in the schedule of
OPEB amounts by employer and nonemployer may result in immaterial differences.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local
police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for
the category of coverage elected by the qualified retiree under the State managed care plan or a health
maintenance organization participating in the program providing the lowest premium or periodic charge.
The State also provides funding for retiree health benefits to survivors of local police officers and
firefighters who die in the line of duty under Chapter 271, P.L.1989.
62
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 10. Postemployment Benefits Other Than Pensions (continued):
Therefore, these employers are considered to be in a special funding situation as defined by GASB
Statement No. 75 and the State is treated as a nonemployer contributing entity. Since the local
participating employers do not contribute under this legislation directly to the plan, there is no net OPEB
liability, deferred outflows of resources or deferred inflows of resources to report in the financial
statements of the local participating employers related to this legislation. However, the notes to the
financial statements of the local participating employers must disclose the portion of the nonemployer
contributing entities’ total proportionate share of the collective net OPEB liability that is associated with
the local participating employer.
The participating employer allocations included in the supplemental schedule of employer special funding
allocations and the supplemental schedule of special funding amounts by employer for each employer are
provided as each employer is required to record in their financial statements, as an expense and
corresponding revenue, their proportionate share of the OPEB expense allocated to the State of New
Jersey under the special funding situation and include their proportionate share of the collective net OPEB
liability in their respective notes to their financial statements. For this purpose, the proportionate share
was developed based on eligible plan members subject to the special funding situation. This data takes
into account active members from both participating and non-participating employer locations and retired
members currently receiving OPEB benefits.
Additionally, the State’s proportionate share of the OPEB liability attributable to the Borough is
$1,668,159.00 as of December 31, 2019. The OPEB liability was measured as of June 30, 2019. The total
OPEB liability used to calculate the OPEB liability was determined using update procedures to roll
forward the total OPEB liability from an actuarial valuation as of July 1, 2018, to the measurement date
of June 30, 2019. The State’s proportion of the OPEB liability associated with the Borough was based on
a projection of the Borough’s long-term share of contributions to the OPEB plan relative to the projected
contributions of all participating members, actuarially determined. The State’s proportion measured as of
June 30, 2019 was 0.0301889958%, which was a decrease of 0.0014830069% from its proportion
measured as of June 30, 2018, which is the same proportion as the Borough’s. At December 31, 2019, the
Borough’s and the State of New Jersey’s proportionate share of the OPEB liability were as follows:
State of New Jersey's
Proportionate Share of OPEB Liability
Associated with the Borough
1,668,159.00
$
At December 31, 2019, the State’s proportionate share of the OPEB expense, associated with the
Borough, calculated by the plan as of the June 30, 2019 measurement date was $22,112.00.
63
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 11. Municipal Debt
The following schedule represents the Borough’s summary of debt, as filed in the Borough’s Annual Debt
Statement required by the Local Bond Law of New Jersey for the current and two previous years:
2019
2018
2017
Issued:
General:
Bonds, Notes and Loans
1,800,000.00
$
1,445,000.00
$
1,584,000.00
$
Water Utility:
Bonds, Notes and Loans
355,000.00
390,000.00
425,000.00
Total Debt Issued
2,155,000.00
1,835,000.00
2,009,000.00
Authorized but not issued:
General:
Bonds, Notes and Loans
76,177.09
421,677.09
345,427.09
Water Utility:
Bonds, Notes and Loans
100,000.00
100,000.00
-
Total Authorized But Not Issued
176,177.09
521,677.09
345,427.09
Total Gross Debt
2,331,177.09
$
2,356,677.09
$
2,354,427.09
$
Deductions:
Utility:
Self Liquidating Debt
455,000.00
$
490,000.00
$
425,000.00
$
Total Deductions
455,000.00
490,000.00
425,000.00
Total Net Debt
1,876,177.09
$
1,866,677.09
$
1,929,427.09
$
64
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 11. Municipal Debt (continued)
Summary of Statutory Debt Condition – Annual Debt Statement
The following schedule is a summary of the previous schedule and is prepared in accordance with the
required method of setting up the Annual Debt Statement:
Gross Debt
Deductions
Net Debt
Regional School Debt
1,053,862.34
$
1,053,862.34
$
-
$
General Debt
1,876,177.09
-
1,876,177.09
Utility Debt
455,000.00
455,000.00
-
3,385,039.43
$
1,508,862.34
$
1,876,177.09
$
Net Debt $1,876,177.09 divided by the average Equalized Valuation Basis per N.J.S.A.40A:2-2 as
amended, $257,913,604 equals 0.727%. New Jersey statute 40A:2-6, as amended, limits the debt of a
Municipality to 3.5% of the last three preceding year’s average equalized valuations of real estate,
including improvements and the assessed valuation of Class II Railroad Property. The remaining
borrowing power in dollars at December 31, 2019 is calculated as follows:
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
9,026,976.14
$
Net Debt
1,876,177.09
Remaining Borrowing Power
7,150,799.05
$
Self-Liquidating Water Utility Calculation per N.J.S.A. 40A:2-46
Cash Receipts From Fees, Rents
or Other Charges for the Year
741,097.95
$
Deductions:
Operating and Maintenance Costs
339,769.55
$
Debt Service
54,150.00
Total Deductions
393,919.55
Excess/(Deficit) in Revenue
347,178.40
$
*If Excess in Revenues all Utility Debt is Deducted
65
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 11. Municipal Debt (continued)
General Debt
A. Serial Bonds Payable
On 12/2013, the Borough issued $465,000 of General Obligation Bonds. The General Obligation Bonds
were issued at interest rates varying from 3% to 5% and mature on 12/1/2027.
On 12/2013, the Borough issued $1,355,000 of General Obligation Bonds. The General Obligation Bonds
were issued at interest rates varying from 2% to 5% and mature on 12/1/2033.
Year
Principal
Interest
Total
2020
$ 90,000.00 $ 65,268.76 $ 155,268.76
2021
95,000.00 60,768.76 155,768.76
2022
90,000.00 56,018.76 146,018.76
2023
105,000.00 51,518.76 156,518.76
2024
100,000.00 46,268.76 146,268.76
2025-2029 505,000.00 151,593.80 656,593.80
2030-2033 375,000.00 39,175.04 414,175.04
1,360,000.00
$
470,612.64
$
1,830,612.64
$
B. Bond Anticipation Notes Payable – Short Term Debt
The following is a summary of bond anticipation notes payable accounted for in the General Capital fund
at December 31, 2019:
Balance
Date of
Date of
December 31,
Description
Issue
Maturity
Rate
2019
ADA Intersection Improvements - CDBG
10/23/2019
10/30/2020
1.950%
14,400.00
$
Road Reconstruction/Various Improvements
10/23/2019
10/30/2020
1.950%
143,313.85
Acquisition of Leaf Machine
10/23/2019
10/30/2020
1.950%
37,611.00
Various Capital Improvements
10/23/2019
10/30/2020
1.950%
42,613.91
Various Capital Improvements
10/23/2019
10/30/2020
1.950%
18,500.00
DPW Dump Truck
10/23/2019
10/30/2020
1.950%
25,000.00
Road Improvements to Hospitality Way
10/23/2019
10/30/2020
1.950%
54,061.24
General Improvements for the Police Dept
10/23/2019
10/30/2020
1.950%
104,500.00
440,000.00
$
The purpose of these short-term borrowings was to provide resources for general capital construction,
acquisitions or improvement projects and other purposes permitted by State Local Bond Law NJSA
40A:2 et. seq.
66
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 11. Municipal Debt (continued)
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2019, the Borough had $76,177.09 General Capital bonds and notes authorized but
not issued.
Water Utility Debt
A. Serial Bonds Payable
On 12/2013, the Borough issued $515,000 of Utility Revenue Bonds. The Bonds were issued at interest
rates varying from 3% to 5% and mature on 12/2027.
Year
Principal
Interest
Total
2020
$ 35,000.00 $ 17,750.00 $ 52,750.00
2021
35,000.00 16,000.00 51,000.00
2022
40,000.00 14,250.00 54,250.00
2023
40,000.00 12,250.00 52,250.00
2024
50,000.00 10,250.00 60,250.00
2025-2027
155,000.00 15,750.00 170,750.00
355,000.00
$
86,250.00
$
441,250.00
$
B. Bond Anticipation Notes Payable – Short Term Debt
The Borough has no bond anticipation notes outstanding at December 31, 2019.
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2019, the Borough had $100,000.00 in various bonds and notes authorized but not
issued.
67
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 11. Municipal Debt (continued)
Summary of Principal Debt
A summary of the changes in long-term and short term debt of the Borough is as follows:
Balance
Balance
Balance
December 31,
Accrued/
Retired/
December 31,
Due Within
2018
Increases
Decreases
2019
One Year
General Capital:
General Bonds
1,445,000.00
$
-
$
85,000.00
$
1,360,000.00
$
90,000.00
$
Bond Anticipation Notes
-
440,000.00
-
440,000.00
440,000.00
1,445,000.00
$
440,000.00
$
85,000.00
$
1,800,000.00
$
530,000.00
$
Water Utility Capital:
Utility Bonds
390,000.00
$
-
$
35,000.00
$
355,000.00
$
35,000.00
$
390,000.00
$
-
$
35,000.00
$
355,000.00
$
35,000.00
$
Note 12. Deferred School District Taxes
School taxes have been raised and the liability deferred by statutes. The balance of unpaid local and
regional school taxes levied, amount deferred and the amount reported as a liability (payable) at
December 31, are as follows:
Regional School Taxes
2019
2018
Total Balance of Local Tax
950,287.26
$
1,059,059.76
$
Deferred Taxes
826,422.97
826,422.97
Local Tax Payable
123,864.29
$
232,636.79
$
Regional High School Taxes
2019
2018
Total Balance of Regional Tax
607,162.62
$
566,340.62
$
Deferred Taxes
397,082.47
397,082.47
Regional Tax Payable
210,080.15
$
169,258.15
$
Balance, December 31,
Balance, December 31,
68
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 13. Deferred Charges to be Raised in Succeeding Budgets
Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, 2019,
the Borough had no deferred charges to be raised in succeeding budgets.
Note 14. Risk Management
The Borough is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
Joint Insurance Pool
The Borough is a member of the Municipal Excess Liability Joint Insurance Fund. The Fund provides the
Borough with the following coverage
Employee Theft - Per Loss Coverage
$1,000,000.00
Forgery or Alteration
1,000,000.00
Inside the Premises - Theft of Money and Securities
1,000,000.00
Inside the Premises - Robbery or Safe Burglary of Other Property
1,000,000.00
Computer Fraud
1,000,000.00
Public Employee Dishonesty
1,000,000.00
Contributions to the Funds are payable in one installment and are based on actuarial assumptions
determined by the Funds’ actuaries. The Fund publishes its own financial report for the year ended
December 31, 2019 which can be obtained on the Fund’s website.
Note 15. Accumulated Absences
As discussed in Note 1 and in accordance with accounting principles prescribed by the State of New
Jersey, the cash basis of accounting is followed for recording the Borough’s liability related to unused
vacation, sick pay and compensation time. The Borough permits certain employees within limits to
accumulate unused vacation, sick pay and compensation time, which may be taken as time off or paid at a
later date at an agreed upon rate. In accordance with New Jersey accounting principles, this unused
accumulated absences amount is not reported as a liability in the accompanying financial statements. It is
estimated that accrued benefits for compensated absences are valued at $42,789.72 at December 31, 2019.
Note 16. Unemployment Compensation Insurance
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the
“Reimbursement Method”. Under this plan, the Borough is required to reimburse the New Jersey
Unemployment Trust Fund, dollar-for-dollar, for unemployment benefits paid to its former employees
who were laid off or furloughed and charged to its account with the State. The Borough is billed
quarterly for amounts due to the State. The following is a summary of Borough contributions,
reimbursements to the State for benefits paid and the ending balance of the Borough’s trust fund for the
current and previous two years:
69
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 16. Unemployment Compensation Insurance (continued)
Employee
Interest
Year
Contributions
Contributions
Earned
Ending Balance
2019
200.00
$
-
$
512.54
$
52,081.09
$
2018
200.00
-
51.24
51,368.55
2017
2,033.33
18,598.19
-
51,117.31
Note 17. General Fixed Assets
Fixed Assets activity for the year ended December 31, 2019 was as follows:
Balance
Balance
December 31,
December 31,
2018
Additions
Deletions
2019
Land
2,039,400.00
$
-
$
-
$
2,039,400.00
$
Buildings and Improvements
510,300.00
-
-
510,300.00
Machinery & Equipment
1,032,558.19
-
-
1,032,558.19
3,582,258.19
$
-
$
-
$
3,582,258.19
$
Note 18. Contingencies
Grantor Agencies
The Borough receives financial assistance from the State of New Jersey and the U.S. government in the
form of grants. Entitlement to the funds is generally conditional upon compliance with terms and
conditions of the grant agreements and applicable regulations, including the expenditure of the funds for
eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial
and compliance audits by grantors. As a result of these audits, costs previously reimbursed could be
disallowed and require repayment to the grantor agency. As of December 31, 2019 the Borough estimates
that no material liabilities will result from such audits.
Litigation
The Borough is a defendant in several legal proceedings that are in various stages of litigation. It is
believed that the outcome, or exposure to the Borough, from such litigation is either unknown or potential
losses, if any, would not be material to the financial statements.
Tax Appeals
Losses arising from tax appeals are recognized at the time a decision is rendered by an administrative or
judicial body; however, municipalities may establish reserves transferred from tax collections or by
budget appropriation for future payments of tax appeal losses. There are no significant pending tax
appeals as of December 31, 2019.
70
BOROUGH OF ENGLISHTOWN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 19: Subsequent Event
Management has reviewed and evaluated all events and transactions that occurred between December 31,
2019 and June 30, 2020, the date that the financial statements were available for issuance, for possible
disclosure and recognition in the financial statements.
In December 2019, an outbreak of a new strain of coronavirus, COVID-19, emerged in Wuhan, China.
Within weeks, the number of those infected grew significantly, and beyond China’s borders. As of the
date of this report, the coronavirus is reported to have spread to over 143 countries, and the list is
expected to continue to grow. The coronavirus outbreak is still evolving and its effects remain unknown.
The Borough is unable to predict how changing global economic conditions such as the COVID-19
coronavirus will affect the Borough’s operations.
71
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72
SUPPLEMENTARY SCHEDULES
73
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74
CURRENT FUND
75
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76
EXHIBIT A-4
Balance, December 31, 2018
1,430,313.50
$
88,124.35
$
Increased By Receipts:
Taxes Receivable
6,142,990.97
$
-
$
Revenue Accounts Receivable
590,105.75
-
Miscellaneous Revenue Not Anticipated
199,995.46
-
Due From:
State of New Jersey - Senior Citizens'
and Veterans' Deductions
5,750.00
-
Trust - Other Fund
7.32
-
Trust - Animal Control Fund
2,710.26
-
Prepaid Taxes
27,100.60
-
Due to State - Marriage Licenses
325.00
-
Premium on Tax Sale
25,500.00
-
Reserve for Third Party Liens
28,227.50
-
Grants Receivable
-
15,071.35
Grants - Unappropriated
-
8,568.30
7,022,712.86
23,639.65
8,453,026.36
111,764.00
Decreased By Disbursements:
2019 Appropriations
2,027,585.29
-
2018 Appropriation Reserves
82,218.77
-
Accounts Payable
20,230.03
-
Due to State - Marriage Licenses
450.00
-
Fire District Taxes Payable
492,000.00
-
County Taxes Payable
741,197.57
-
Regional District High School Tax Payable
1,041,158.00
-
Regional District School Tax Payable
2,368,596.50
-
Premium on Tax Sale
49,100.00
-
Tax Overpayments
6,995.72
-
Third Party Liens
23,104.68
-
Due From:
Trust - Animal Control Fund
3,048.26
-
Grants - Appropriated
-
19,596.27
6,855,684.82
19,596.27
Balance, December 31, 2019
1,597,341.54
$
92,167.73
$
Current Fund
Grant Fund
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF CASH - TREASURER
CURRENT FUND
COUNTY OF MONMOUTH, NEW JERSEY
77
EXHIBIT A-5
Balance, December 31, 2018
(350.03)
$
Increased By:
Senior Citizens' & Veterans Deductions
Per Duplicate
6,000.00
5,649.97
Decreased By:
Senior Citizens' Deductions Disallowed
250.00
$
Cash Received From State of New Jersey
5,750.00
6,000.00
Balance, December 31, 2019
(350.03)
$
COUNTY OF MONMOUTH, NEW JERSEY
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SENIOR CITIZENS' AND VETERANS' DEDUCTIONS
SCHEDULE OF DUE (TO)/FROM STATE OF NEW JERSEY -
CURRENT FUND
78
EXHIBIT A-6
Balance
Due From
Balance
December 31,
2019
Transfer to
State of
December 31,
Year
2018
Levy
Added
2018
2019
Tax Title Liens
New Jersey
Cancelled
2019
-
$
6,193,708.04
$
3,264.49
$
34,511.03
$
6,140,393.65
$
24.15
$
5,750.00
$
16,259.93
$
33.77
$
-
$
6,193,708.04
$
3,264.49
$
34,511.03
$
6,140,393.65
$
24.15
$
5,750.00
$
16,259.93
$
33.77
$
Cash Receipts
6,142,990.97
$
Overpayments Created
(2,597.32)
6,140,393.65
$
Analysis of Property Tax Levy
Tax Yield
General Purpose Tax
6,193,708.04
$
Added Taxes (R.S. 54-4-63, 1 et seq.)
3,264.49
6,196,972.53
$
Tax Levy
Special District Taxes
492,000.00
Regional District High School Tax
1,081,980.00
Regional District School Tax
2,259,824.00
County Taxes:
County Tax
613,780.54
$
County Library Tax
43,912.96
County Health Tax
12,361.45
County Open Space Tax
71,041.00
Due County for Added and Omitted Taxes
425.11
741,521.06
Local Tax for Municipal Purposes
1,617,216.86
Add: Additional Tax Levied
4,430.61
1,621,647.47
6,196,972.53
$
2019
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Collections
79
EXHIBIT A-7
Balance, December 31, 2017
105.93
$
Increased By:
Transfer From Taxes Receivable
24.15
Balance, December 31, 2019
130.08
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS RECEIVABLE
80
EXHIBIT A-8
Balance, December 31, 2018
521,958.15
$
Decreased by:
Sale of Property
124,900.00
$
Adjust to Assessed Value
78,258.15
203,158.15
Balance, December 31, 2019
318,800.00
$
Block 4, Lot 1
158,800.00
$
Block 4, Lot 40
160,000.00
Total
318,800.00
$
Analysis of Balance
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF FORECLOSED PROPERTY
81
EXHIBIT A-9
Balance
Balance
December 31,
Accrued in
December 31,
2018
2019
Collections
2019
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
-
$
6,856.66
$
6,856.66
$
-
$
Fines and Costs:
Municipal Court
8,940.59
223,553.11
223,211.80
9,281.90
Interest and Costs on Taxes
-
8,891.99
8,891.99
-
Interest on Investments and Deposits
-
50,854.71
50,854.71
-
Off-Duty Police Admin. Fees
-
9,000.00
9,000.00
-
General Capital Fund Surplus
-
25,000.00
25,000.00
-
Cable Franchise Fees
-
63,432.44
63,432.44
-
Energy Receipts Tax
-
139,371.00
139,371.00
-
Fire District Interlocal Agreement
-
32,760.00
32,760.00
-
Consolidated Municipal Property Tax Relief
-
2,835.00
2,835.00
-
Tower Lease Agreement
-
27,892.15
27,892.15
-
8,940.59
$
590,447.06
$
590,105.75
$
9,281.90
$
Cash Receipts
590,105.75
$
590,105.75
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
CURRENT FUND
COUNTY OF MONMOUTH, NEW JERSEY
82
EXHIBIT A-10
Balance, December 31, 2019 & 2018
11,983.60
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF DUE FROM PAYROLL FUND
83
EXHIBIT A-11
Balance, December 31, 2018
7.32
$
Increased By:
Interest on Investments
11.38
$
Expended
4,353.00
4,364.38
4,371.70
Decreased By:
Cash Receipts
7.32
Accrued in Current Fund
4,353.00
4,360.32
Balance, December 31, 2019
11.38
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF DUE FROM TRUST - OTHER FUND/ESCROW
84
EXHIBIT A-12
Balance, December 31, 2018
(338.00)
$
Increased By:
Cash Disbursements
3,048.26
2,710.26
Decreased By:
Cash Receipts
2,710.26
Balance, December 31, 2019
-
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF DUE TO/FROM ANIMAL CONTROL TRUST FUND
85
EXHIBIT A-13
Balance,
December 31,
Balance after
Paid or
2018
Encumbrances
Modifications
Charged
Lapsed
GENERAL GOVERNMENT
Administration and Executive:
Office of the Mayor:
Salaries and Wages
437.50
$
-
$
437.50
$
-
$
437.50
$
Other Expenses
697.50
-
697.50
-
697.50
General Administration:
Other Expenses
1,962.40
114.10
2,076.50
71.53
2,004.97
Municipal Clerk's Office:
Salaries and Wages
6.17
-
6.17
-
6.17
Other Expenses
4,379.39
650.34
4,029.73
583.18
3,446.55
Elections:
Other Expenses
56.65
-
56.65
-
56.65
Annual Audit:
Other Expenses
750.00
-
750.00
-
750.00
Assessment of Taxes:
Salaries and Wages
3.39
-
3.39
-
3.39
Other Expenses
2,465.80
-
2,465.80
-
2,465.80
Department of Finance:
Financial Administration:
Salaries and Wages
63.11
-
63.11
-
63.11
Other Expenses
542.45
408.36
950.81
357.20
593.61
Collection of Taxes:
Salaries and Wages
110.29
-
110.29
-
110.29
Other Expenses
1,683.12
-
1,683.12
6.20
1,676.92
Department of Law:
Legal Services and Costs:
Other Expenses
9,910.50
4,046.00
13,956.50
7,070.00
6,886.50
Municipal Prosecutor:
Salaries and Wages
2,100.00
-
2,100.00
350.00
1,750.00
Department of Parks, Rec & Social Services:
Dog Regulation:
Other Expenses
100.00
-
100.00
-
100.00
Insurance (N.J.S.A. 40A:4-45.3(00)):
Employee Group Health
19,759.02
493.00
20,252.02
918.59
19,333.43
Health Benefits Waiver
2,500.00
-
2,500.00
-
2,500.00
Department of Public Safety:
Police:
Salaries and Wages
18,244.72
-
18,244.72
9,190.20
9,054.52
Other Expenses
352.57
56,041.95
56,394.52
55,738.04
656.48
Emergency Management:
Salaries and Wages
2.61
-
2.61
-
2.61
Other Expenses
400.00
-
400.00
-
400.00
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
86
EXHIBIT A-13
Balance,
December 31,
Balance after
Paid or
2018
Encumbrances
Modifications
Charged
Lapsed
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
GENERAL GOVERNMENT (continued)
Department of Community Development:
Engineering Services and Costs:
Other Expenses
3,713.39
3,337.86
7,051.25
2,423.11
4,628.14
Planning Board:
Salaries and Wages
44.12
-
44.12
-
44.12
Other Expenses
1,770.08
810.00
2,580.08
810.00
1,770.08
Affordable Housing:
Salaries and Wages
8.28
-
8.28
-
8.28
Other Expenses
1,000.00
-
1,000.00
-
1,000.00
Code Enforcement:
Salaries and Wages
1,236.02
-
1,236.02
-
1,236.02
Other Expenses
202.69
-
202.69
-
202.69
Department of Public Works:
Public Buildings and Grounds:
Salaries and Wages
3,369.87
-
3,369.87
164.38
3,205.49
Other Expenses
10,220.08
4,065.48
14,285.56
4,256.82
10,028.74
Road Repairs and Maintenance:
Salaries and Wages
8,635.21
-
8,135.21
342.74
7,792.47
Other Expenses
9,262.85
2,176.62
5,939.47
2,328.70
3,610.77
Garbage and Trash Removal:
Other Expenses
30,900.46
-
30,900.46
10,189.15
20,711.31
Sanitary Landfill:
Other Expenses
3,070.00
-
3,070.00
-
3,070.00
Recycling:
Other Expenses
2,709.90
-
2,709.90
1,799.10
910.80
Snow Removal:
Salaries and Wages
-
-
500.00
500.00
-
Other Expenses
-
-
5,500.00
1,500.00
4,000.00
Municipal Court:
Salaries and Wages
5,727.88
-
5,727.88
667.34
5,060.54
Other Expenses
7,760.93
248.50
8,009.43
226.80
7,782.63
Public Defender:
Other Expenses
3,000.00
-
3,000.00
3,000.00
-
Celebrating Public Events:
Other Expenses
100.00
-
1,100.00
1,100.00
-
Shade Tree Commission:
Salaries and Wages
905.00
-
905.00
-
905.00
Other Expenses
1,200.00
-
1,200.00
95.00
1,105.00
UNCLASSIFIED
Utilities:
Electricity
2,965.00
-
2,965.00
1,300.29
1,664.71
Street Lighting
4,985.34
-
4,985.34
42.66
4,942.68
Telephone (excluding equipment acquisition)
1,288.74
-
1,288.74
745.94
542.80
Natural Gas
3,262.16
-
3,262.16
-
3,262.16
Gasoline
4,978.64
1,427.31
6,405.95
2,789.71
3,616.24
Water and Sewage
788.00
-
788.00
-
788.00
87
EXHIBIT A-13
Balance,
December 31,
Balance after
Paid or
2018
Encumbrances
Modifications
Charged
Lapsed
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
Contribution To:
Public Employees' Retirement System
550.18
-
550.18
541.30
8.88
Police and Firemen's Retirement System of NJ
2,028.00
-
2,028.00
-
2,028.00
Defined Contribution Retirement Program
1,405.90
-
1,405.90
-
1,405.90
Social Security System (O.A.S.I.)
5,438.91
-
5,438.91
676.25
4,762.66
Matching Funds for Grants
2,500.00
-
2,500.00
-
2,500.00
LOSAP:
Other Expenses
5,500.00
-
5,500.00
2,200.00
3,300.00
Recycling (N.J.S.A. 13:1E-96.5):
Other Expenses
738.51
-
738.51
186.30
552.21
Interlocal Municipal Service Agreements:
911 Emergency Service Contract with County
2,968.78
-
2,968.78
-
2,968.78
Fire District:
Other Expenses
1,073.50
-
1,073.50
-
1,073.50
Total General Appropriations
201,835.61
$
73,819.52
$
275,655.13
$
112,170.53
$
163,484.60
$
Appropriation Reserves
201,835.61
$
Encumbrances Payable
73,819.52
275,655.13
$
Cash Disbursed
82,218.77
$
Transferred To Accounts Payable
29,951.76
112,170.53
$
88
EXHIBIT A-14
Balance, December 31, 2018
36,592.00
$
Increased by:
Current Year Payables
29,951.76
66,543.76
Decreased By:
Cash Disbursements
20,230.03
$
Cancelation of Prior Year Payables
143.22
20,373.25
Balance, December 31, 2019
46,170.51
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF ACCOUNTS PAYABLE
89
EXHIBIT A-15
Balance, December 31, 2018
34,511.03
$
Increased By:
Cash Receipts
27,100.60
61,611.63
Decreased By:
Applied To Taxes Receivable
34,511.03
Balance, December 31, 2019
27,100.60
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF PREPAID TAXES
90
EXHIBIT A-16
Balance, December 31, 2018
175.00
$
Increased By:
Cash Receipts
325.00
500.00
Decreased By:
Cash Disbursements
450.00
Balance, December 31, 2019
50.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF MARRIAGE LICENSE FEES PAYABLE
91
EXHIBIT A-17
Balance, December 31, 2018
-
$
Increased By:
Tax Levy
492,000.00
492,000.00
Decreased By:
Cash Disbursed
492,000.00
Balance, December 31, 2019
-
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF FIRE DISTRICT TAXES PAYABLE
92
EXHIBIT A-18
Balance, December 31, 2018
101.62
$
Increased By:
2019 Tax Levy:
County Tax
613,780.54
$
County Library Tax
43,912.96
County Health Tax
12,361.45
County Open Space Tax
71,041.00
Added and Omitted Taxes
425.11
741,521.06
741,622.68
Decreased By:
Cash Disbursed
741,197.57
Balance, December 31, 2019
425.11
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
93
EXHIBIT A-19
Balance, December 31, 2018
School Tax Payable
169,258.15
$
School Tax Deferred
397,082.47
566,340.62
$
Increased By:
Levy - School Year July 1, 2019
to June 30, 2019
1,081,980.00
1,648,320.62
Decreased By:
Cash Disbursed
1,041,158.00
Balance, December 31, 2019
School Tax Payable
210,080.15
$
School Tax Deferred
397,082.47
607,162.62
$
2019 Liability for Regional District High School Tax
Tax Payable, December 31, 2019
210,080.15
$
Tax Paid
1,041,158.00
1,251,238.15
$
Less:
Tax Payable, December 31, 2018
169,258.15
Amount Charged To 2019 Operations
1,081,980.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF REGIONAL DISTRICT HIGH SCHOOL TAX
94
EXHIBIT A-20
Balance, December 31, 2018
School Tax Payable
232,636.79
$
School Tax Deferred
826,422.97
1,059,059.76
$
Increased By:
Levy - School Year July 1, 2019
to June 30, 2019
2,259,824.00
3,318,883.76
Decreased By:
Cash Disbursed
2,368,596.50
Balance, December 31, 2019
School Tax Payable
123,864.29
$
School Tax Deferred
826,422.97
950,287.26
$
2019 Liability for Regional District School Tax
Tax Payable, December 31, 2019
123,864.29
$
Tax Paid
2,368,596.50
2,492,460.79
$
Less:
Tax Payable, December 31, 2018
232,636.79
Amount Charged to 2019 Operations
2,259,824.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF REGIONAL DISTRICT SCHOOL TAX
95
EXHIBIT A-21
Balance, December 31, 2018
34,865.71
$
Increased By:
Current Appropriations
10,000.00
Balance, December 31, 2019
44,865.71
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF RESERVE FOR TAX APPEALS PENDING
96
EXHIBIT A-22
Balance, December 31, 2018
-
$
Increased By:
Cash Receipts
28,227.50
28,227.50
Decreased By:
Cash Disbursements
23,104.68
Balance, December 31, 2019
5,122.82
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF RESERVE FOR THIRD PARTY LIENS
97
EXHIBIT A-23
Balance, December 31, 2018
-
$
Increased By:
Charges Assessed
5,250.00
Balance, December 31, 2019
5,250.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF MUNICIPAL SPECIAL CHARGES LIEN RECEIVABLE
98
EXHIBIT A-24
Balance, December 31, 2018
66,400.00
$
Increased By:
Cash Receipts
25,500.00
91,900.00
Decreased By:
Cash Disbursements
49,100.00
$
Cancelled
11,000.00
60,100.00
Balance, December 31, 2019
31,800.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF RESERVE FOR PREMIUM ON TAX SALE
99
EXHIBIT A-25
Balance, December 31, 2018
6,995.72
$
Increased By:
Overpayments Created
2,597.32
9,593.04
Decreased By:
Cash Disbursements
6,995.72
Balance, December 31, 2019
2,597.32
$
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
CURRENT FUND
SCHEDULE OF RESERVE FOR TAX OVERPAYMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
100
EXHIBIT A-26
2019
Transferred
Balance
Budget
From
Balance
December 31,
Revenue
Unappropriated
December 31,
2018
Realized
Received
Reserves
2019
Federal:
Click it or Ticket Grant
-
$
5,500.00
$
5,500.00
$
-
$
-
$
Distracted Driving Crackdown
-
5,500.00
5,500.00
-
-
Sub-Total Federal
-
11,000.00
11,000.00
-
-
State:
Clean Communities Grant
-
4,000.00
-
4,000.00
-
Recycling Tonnage Grant
-
2,934.36
2,934.36
-
-
Body Armor Grant
585.00
1,136.99
1,136.99
-
585.00
Alcohol Education Rehabilitation Program
-
1,684.35
-
1,684.35
-
Sub-Total State
585.00
9,755.70
4,071.35
5,684.35
585.00
Total
585.00
$
20,755.70
$
15,071.35
$
5,684.35
$
585.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
101
EXHIBIT A-27
Balance
Decreased
Balance
December 31,
Cash
By Budget
December 31,
2018
Received
Appropriation
2019
State:
Alcohol Education Rehabilitation
Program
1,684.35
$
1,848.62
$
1,684.35
$
1,848.62
$
Clean Communities Grant
4,000.00
4,000.00
4,000.00
4,000.00
Recycling Tonnage Grant
-
2,719.68
-
2,719.68
Sub-Total State
5,684.35
8,568.30
5,684.35
8,568.30
Total
5,684.35
$
8,568.30
$
5,684.35
$
8,568.30
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - UNAPPROPRIATED
102
EXHIBIT A-28
Balance
Transferred from
Balance
December 31,
2019 Budget
Paid or
December 31,
2018
Appropriations
Charged
2019
Federal:
Click it or Ticket Grant
-
$
5,500.00
$
5,500.00
$
-
$
Distracted Driving Crackdown Grant
-
5,500.00
5,500.00
-
Sub-Total Federal
-
11,000.00
11,000.00
-
State:
Clean Communities Program
13,753.06
4,000.00
3,766.27
13,986.79
Recycling Tonnage Grant
38,164.70
2,934.36
4,352.00
36,747.06
Alcohol Rehabilitation Program
9,954.72
1,684.35
-
11,639.07
Drunk Driving Enforcement Fund
5,690.25
-
478.00
5,212.25
Body Armor Fund
9,762.26
1,136.99
-
10,899.25
Sub-Total State
77,324.99
9,755.70
8,596.27
78,484.42
Local:
Cable Technology Grant
5,700.01
-
-
5,700.01
Sub-Total Local
5,700.01
-
-
5,700.01
Total
83,025.00
$
20,755.70
$
19,596.27
$
84,184.43
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - APPROPRIATED
103
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104
TRUST FUND
105
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106
EXHIBIT B-1
Animal Control
Other
Trust Fund
Trust Funds
Balance, December 31, 2018
4,953.80
$
210,573.00
$
Increased By Receipts:
Due To:
State of New Jersey
171.00
-
Current Fund
98.26
129.39
License Fees
2,038.60
-
Various Reserves
-
72,090.61
Total Receipts
2,307.86
72,220.00
Subtotal
7,261.66
282,793.00
Decreased By Disbursements:
Due To:
Current Fund
2,710.26
125.33
Various Reserves
-
60,865.04
Total Disbursements
2,710.26
60,990.37
Balance, December 31, 2019
4,551.40
$
221,802.63
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF CASH - TREASURER
TRUST FUNDS
COUNTY OF MONMOUTH, NEW JERSEY
107
EXHIBIT B-2
Balance, December 31, 2018
(338.00)
$
Increased By:
Interest
98.26
$
Payment To State of New Jersey
174.00
Dog Fund Expenditures
2,776.00
3,048.26
2,710.26
Decreased By:
Cash Disbursements
2,710.26
Balance, December 31, 2019
-
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF DUE TO/(FROM) CURRENT FUND
ANIMAL CONTROL TRUST FUND
COUNTY OF MONMOUTH, NEW JERSEY
108
EXHIBIT B-3
Balance, December 31, 2018
4.20
$
Increased By:
State Share of Dog License Fee
171.00
175.20
Decreased By:
Paid By Current Fund
174.00
Balance, December 31, 2019
1.20
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
ANIMAL CONTROL TRUST FUND
SCHEDULE OF DUE TO STATE OF NEW JERSEY
109
EXHIBIT B-4
Balance, December 31, 2018
-
$
Increased By:
Current Year Encumbrances
2,950.00
2,950.00
Decreased By:
Paid by Current
2,950.00
Balance, December 31, 2019
-
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF ENCUMBRANCES PAYABLE
ANIMAL CONTROL TRUST FUND
COUNTY OF MONMOUTH, NEW JERSEY
110
EXHIBIT B-5
Balance, December 31, 2018
5,287.60
$
Increased By:
Dog License Fees Collected
2,038.60
7,326.20
Decreased By:
Expenditures
2,776.00
Balance, December 31, 2019
4,550.20
$
License Fees Collected
2018
2,584.60
$
2017
3,002.00
5,586.60
$
Analysis of Balance
Reserve For Expenditures
4,200.20
$
Reserve For Dangerous Animal
350.00
4,550.20
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
ANIMAL CONTROL TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND
EXPENDITURES / DANGEROUS ANIMAL
111
EXHIBIT B-6
Balance, December 31, 2018
7.32
$
Increased By:
Interest Earned
129.39
136.71
Decreased By:
Cash Disbursements
125.33
Balance, December 31, 2019
11.38
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF DUE TO CURRENT FUND
TRUST - OTHER FUND
COUNTY OF MONMOUTH, NEW JERSEY
112
EXHIBIT B-7
Balance
Transfer from
Transfer to
Balance
December 31,
Encumbrances
Encumbrances
December 31,
2018
Payable
Increased
Decreased
Payable
2019
Reserve for:
Builder's Contributions
49,442.50
$
-
$
-
$
-
$
-
$
49,442.50
$
Municipal Court Parking - POAA
142.00
-
12.00
-
-
154.00
Off-Duty Employment - Police
28,277.73
-
52,945.00
47,562.61
-
33,660.12
Public Defender
2,608.63
-
4,080.00
2,622.16
-
4,066.47
Snow Removal
35,799.74
680.20
7,500.00
4,006.87
1,315.64
38,657.43
COAH
149.90
-
6.05
-
-
155.95
Law Enforcement Trust Fund
4,388.59
-
41.44
1,816.01
-
2,614.02
Police Safety Equipment
5,530.36
-
54.97
-
-
5,585.33
Special Events
1,435.95
-
1,208.00
375.00
-
2,268.95
Performance Bonds
18,798.20
-
141.49
48.77
-
18,890.92
Planning Board Escrow
9,833.13
622.50
5,380.62
4,433.62
225.50
11,177.13
Escrow Fees
1,007.88
125.00
8.50
-
125.00
1,016.38
Unemployment
51,368.55
-
712.54
-
-
52,081.09
Community Development Block Grant
354.82
-
-
-
-
354.82
209,137.98
$
1,427.70
$
72,090.61
$
60,865.04
$
1,666.14
$
220,125.11
$
TRUST - OTHER FUND
COUNTY OF MONMOUTH, NEW JERSEY
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF VARIOUS RESERVES
113
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114
GENERAL CAPITAL FUND
115
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116
EXHIBIT C-2
Balance, December 31, 2018
298,088.05
$
Increased By:
Deferred Charges Unfunded
10,000.00
$
Grants Receivable
25,881.70
Bond Anticipation Notes
440,000.00
Capital Improvement Fund
15,000.00
490,881.70
788,969.75
Decreased By:
Improvement Authorizations
11,959.50
Fund Balance - Anticipated in Current Fund
25,000.00
36,959.50
Balance, December 31, 2019
752,010.25
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF CASH - TREASURER
117
EXHIBIT C-3
Balance
December 31,
2019
Capital Improvement Fund
72,302.81
$
Encumbrances Payable
3,850.00
Fund Balance
160,096.74
Reserve for Debt Service
22,500.00
Ordinance
Number
2011-08
Property Acquisition/Various Improvements
141,041.56
2012-05
Road Reconstruction/Various Equipment
61,158.65
2012-13
Demolition of Hazardous Structure
75,607.56
2014-03
Property Acquisition/Various Improvements
87,937.50
2015-14
Tax Appeal
1,438.10
2016-04
Various Capital Improvements
10,589.00
2017-03
Various Capital Improvements
782.09
2017-04
DPW Dump Truck
6,992.00
2018-03
Road Improvements to Hospitality Way
(1,885.76)
2019-02
General Improvements for the Police Dept
109,600.00
752,010.25
$
Improvement Description
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF ANALYSIS OF GENERAL CAPITAL CASH
118
EXHIBIT C-4
Balance, December 31, 2018
90,230.33
$
Decreased By:
Cancellation of Grants Receivable
64,348.63
$
Grant Receipts
25,881.70
90,230.33
Balance, December 31, 2019
-
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF GRANTS RECEIVABLE
119
EXHIBIT C-5
Balance, December 31, 2018
1,445,000.00
$
Decreased By:
Serial Bonds Paid by Current Fund
85,000.00
Balance, December 31, 2019
1,360,000.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
120
EXHIBIT C-6
Balance
Balance
Bond
Unexpended
Ordinance
Ordinance
December 31,
December 31,
Anticipation
Improvement
Number
Date
Improvement Description
2018
Increases
Decreases
2019
Notes
Authorizations
Expenditures
2014-02
05/23/14
ADA Intersection Improvements-CDBG
14,400.00
$
-
$
-
$
14,400.00
$
14,400.00
$
-
$
-
$
2014-04
08/27/14
Road Reconstruction/Various Improvements
143,313.85
-
-
143,313.85
143,313.85
-
-
2015-09
05/27/15
Acquisition of Leaf Machine
37,611.00
-
-
37,611.00
37,611.00
-
-
2016-04
05/25/16
Road Reconstruction
96,602.24
-
10,000.00
86,602.24
42,613.91
43,988.33
-
2017-03
06/28/17
Various Capital Improvements
18,500.00
-
-
18,500.00
18,500.00
-
-
2017-04
09/27/17
DPW Dump Truck
25,000.00
-
-
25,000.00
25,000.00
-
-
2018-03
06/25/18
Road Improvements to Hospitality Way
86,250.00
-
-
86,250.00
54,061.24
30,303.00
1,885.76
2019-02
08/14/19
General Improvements for the Police Dept
-
104,500.00
-
104,500.00
104,500.00
-
-
421,677.09
$
104,500.00
$
10,000.00
$
516,177.09
$
440,000.00
$
74,291.33
$
1,885.76
$
Unfunded Ordinance paid down by Budget Appropriation
10,000.00
$
10,000.00
$
Improvement Authorizations - Unfunded
197,154.42
$
Less: Unexpended Proceeds of Bond Anticipation Notes - Issued
Ordinance 2016-04
10,589.00
$
Ordinance 2017-03
782.09
Ordinance 2017-04
6,992.00
Ordinance 2019-02
104,500.00
122,863.09
74,291.33
$
Analysis of Balance
COUNTY OF MONMOUTH, NEW JERSEY
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
GENERAL CAPITAL FUND
121
EXHIBIT C-7
Balance
Balance
Date of
Interest
December 31,
December 31,
Issue
Original Issue
Date
Amount
Rate
2018
Decreased
2019
Monmouth County
Improvement Authority Bonds
12/24/13
1,355,000.00
$
12/01/20
55,000.00
5.000%
1,105,000.00
$
50,000.00
$
1,055,000.00
$
12/01/21
55,000.00
5.000%
12/01/22
60,000.00
5.000%
12/01/23
65,000.00
5.000%
12/01/24
65,000.00
5.000%
12/01/25
70,000.00
5.000%
12/01/26
70,000.00
5.000%
12/01/27
75,000.00
5.000%
12/01/28
80,000.00
5.000%
12/01/29
85,000.00
5.000%
12/01/30
90,000.00
5.000%
12/01/31
95,000.00
4.000%
12/01/32
95,000.00
4.000%
12/01/33
95,000.00
4.125%
12/24/13
465,000.00
12/01/20
35,000.00
5.000%
340,000.00
35,000.00
305,000.00
12/01/21
40,000.00
5.000%
12/01/22
30,000.00
5.000%
12/01/23
40,000.00
5.000%
12/01/24
35,000.00
5.000%
12/01/25
40,000.00
5.000%
12/01/26
45,000.00
5.000%
12/01/27
40,000.00
5.000%
1,445,000.00
$
85,000.00
$
1,360,000.00
$
Refunding Bonds
December 31, 2019
Purpose
Outstanding
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF SERIAL BONDS
FOR THE YEAR ENDED DECEMBER 31, 2019
122
EXHIBIT C-8
Original
Balance
Balance
Date of
Issue
Date of
Date of
Interest
December 31,
December 31,
Ordinance
Improvement Description
Date
Issue
Maturity
Rate
2018
Increased
2019
05/23/14
ADA Intersection Improvements - CDBG
10/30/19
10/30/19
10/30/20
1.95%
-
$
14,400.00
$
14,400.00
$
08/27/14
Road Reconstruction/Various Improvements
10/30/19
10/30/19
10/30/20
1.95%
-
143,313.85
143,313.85
05/27/15
Acquisition of Leaf Machine
10/30/19
10/30/19
10/30/20
1.95%
-
37,611.00
37,611.00
05/25/16
Various Capital Improvements
10/30/19
10/30/19
10/30/20
1.95%
-
42,613.91
42,613.91
06/28/17
Various Capital Improvements
10/30/19
10/30/19
10/30/20
1.95%
-
18,500.00
18,500.00
09/27/17
DPW Dump Truck
10/30/19
10/30/19
10/30/20
1.95%
-
25,000.00
25,000.00
06/25/18
Road Improvements to Hospitality Way
10/30/19
10/30/19
10/30/20
1.95%
-
54,061.24
54,061.24
08/14/19
General Improvements for the Police Dept
10/30/19
10/30/19
10/30/20
1.95%
-
104,500.00
104,500.00
-
$
440,000.00
$
440,000.00
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF BOND ANTICIPATION NOTES PAYABLE
GENERAL CAPITAL FUND
COUNTY OF MONMOUTH, NEW JERSEY
123
EXHIBIT C-9
Transfer from
Ordinance Ordinance
Ordinance
2019
Encumbrance
Number
Date
Improvement Description
Amount
Funded
Unfunded
Authorizations
Payable
Expended
Encumbered
Canceled
Funded
Unfunded
2011-08
09/15/11
Property Acquisition/Various Improvements
542,100.00
$
141,041.56
$
-
$
-
$
-
$
-
$
-
$
-
$
141,041.56
$
-
$
2012-05
07/13/12
Road Reconstruction/Various Equipment
595,600.00
61,158.65
-
-
-
-
-
-
61,158.65
-
2012-13
12/17/12
Demolition of Hazardous Structure
125,000.00
86,209.06
-
-
-
6,751.50
3,850.00
-
75,607.56
-
2014-03
07/23/14
Property Acquisition/Various Improvements
95,000.00
87,937.50
-
-
-
-
-
-
87,937.50
-
2015-14
08/26/15
Tax Appeal
162,000.00
1,438.10
-
-
-
-
-
-
1,438.10
-
2016-04
05/25/16
Various Capital Improvements
245,000.00
-
77,263.61
-
-
-
-
22,686.28
-
54,577.33
2017-03
06/28/17
Various Capital Improvements
30,000.00
-
1,747.09
-
2,350.00
3,315.00
-
-
-
782.09
2017-04
09/27/17
DPW Dump Truck
65,000.00
-
6,992.00
-
-
-
-
-
-
6,992.00
2018-03
06/25/18
Road Improvements to Hospitality Way
275,000.00
-
71,965.35
-
1,493.00
1,493.00
-
41,662.35
-
30,303.00
2019-02
08/14/19
General Improvements for the Police Dept
110,000.00
-
-
110,000.00
-
400.00
-
-
5,100.00
104,500.00
377,784.87
$
157,968.05
$
110,000.00
$
3,843.00
$
11,959.50
$
3,850.00
$
64,348.63
$
372,283.37
$
197,154.42
$
Capital Improvement Fund
5,500.00
$
Deferred Charges Unfunded
104,500.00
110,000.00
$
December 31, 2018
Balance
December 31, 2019
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Balance
Expended
124
EXHIBIT C-10
Balance, December 31, 2019 & 2018
22,500.00
$
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR DEBT SERVICE
FOR THE YEAR ENDED DECEMBER 31, 2019
125
EXHIBIT C-11
Balance, December 31, 2018
$
62,802.81
Increased By:
Current Fund Appropriation
15,000.00
77,802.81
Decreased By:
Improvement Authorizations
5,500.00
Balance, December 31, 2019
$
72,302.81
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
126
EXHIBIT C-12
Balance
Balance
Ordinance
Ordinance
December 31,
December 31,
Number
Date
2018
Increased
Decreased
2019
2014-02
05/23/14
ADA Intersection Improvements-CDBG
14,400.00
$
-
$
14,400.00
$
-
$
2014-04
08/27/14
Road Reconstruction/Various Improvements
143,313.85
-
143,313.85
-
2015-09
05/27/15
Acquisition of Leaf Machine
37,611.00
-
37,611.00
-
2016-04
05/25/16
Various Capital Improvements
96,602.24
-
52,613.91
43,988.33
2017-03
06/28/17
Various Capital Improvements
18,500.00
-
18,500.00
-
2017-04
09/27/17
DPW Dump Truck
25,000.00
-
25,000.00
-
2018-03
06/25/18
Road Improvements to Hospitality Way
86,250.00
-
54,061.24
32,188.76
2019-02
08/14/19
General Improvements for the Police Dept
-
104,500.00
104,500.00
-
421,677.09
$
104,500.00
$
450,000.00
$
76,177.09
$
BANs Issued
440,000.00
$
Paid By Budget Appropriation
10,000.00
450,000.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
Improvement Description
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
127
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128
WATER UTILITY FUND
129
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130
EXHIBIT D-5
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
Balance, December 31, 2018
444,560.14
$
345,815.29
$
Increased By Receipts:
Miscellaneous Revenue Not Anticipated
20,041.34
$
-
$
Consumer Accounts Receivable
466,607.31
-
Rent Overpayments
1,894.13
-
Capital Improvement Fund
-
10,000.00
488,542.78
10,000.00
933,102.92
355,815.29
Decreased By Disbursements:
2019 Budget Appropriations
404,455.32
-
2018 Appropriation Reserves
26,798.60
-
Improvement Authorizations
-
12,489.00
431,253.92
12,489.00
Balance, December 31, 2019
501,849.00
$
343,326.29
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF CASH - TREASURER
Capital
Operating
131
EXHIBIT D-6
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
Balance
December 31,
2019
Capital Improvement Fund
332,481.00
$
Fund Balance
631.17
Ordinance
Date
Improvement Description
09/15/11
Water Plant Roof
22,703.12
$
11/19/18
Water Capital Asset Management Plan
(12,489.00)
343,326.29
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF ANALYSIS OF WATER UTILITY CAPITAL CASH
132
EXHIBIT D-7
Balance, December 31, 2018
18,388.43
$
Increased By:
Water Rents Levied
462,620.17
481,008.60
Decreased By:
Collections
466,607.31
$
Overpayments Applied
1,073.01
467,680.32
Balance, December 31, 2019
13,328.28
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
133
EXHIBIT D-8
Balance
Balance
December 31,
December 31,
Description
2018
Increased
2019
Water Supply and Distribution System
440,206.49
$
-
$
440,206.49
$
Extension of Water Lines, South Main
Street
2,846.70
-
2,846.70
Extension of Water Lines, Mount Vernon
Avenue
16,298.05
-
16,298.05
Purchase of Water Meters
37,596.76
-
37,596.76
Installation of Pump
48,128.79
-
48,128.79
Installation of Backwash Settling Tank
9,399.00
-
9,399.00
Improvements To Water System
2,025,010.60
535.77
2,025,546.37
Purchase of Utility Billing Software and
Equipment
11,699.70
-
11,699.70
Purchase of Truck
57,965.00
-
57,965.00
Water Storage Tank Painting
498,362.76
-
498,362.76
Installation of Interconnection Meter Pit
61,465.88
-
61,465.88
3,208,979.73
$
535.77
$
3,209,515.50
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
134
EXHIBIT D-9
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY FUND
Balance
Balance
December 31,
After
Paid or
2018
Modifications
Charged
Lapsed
Operating:
Salaries and Wages
5,612.88
$
5,612.88
$
516.43
$
5,096.45
$
Other Expenses
64,785.08
78,706.57
26,242.67
52,463.90
Total Operating
70,397.96
84,319.45
26,759.10
57,560.35
Capital Improvements:
Capital Outlay
14,556.10
14,556.10
-
14,556.10
Total Capital Improvements
14,556.10
14,556.10
-
14,556.10
Statutory Expenditures:
Contributions To:
Public Employees' Retirement System
23.00
23.00
-
23.00
Unemployment Compensation Insurance
2,359.68
2,359.68
39.50
2,320.18
Total Statutory Expenditures
2,382.68
2,382.68
39.50
2,343.18
Total Water Utility Fund Appropriations
87,336.74
$
101,258.23
$
26,798.60
$
74,459.63
$
Appropriation Reserves
87,336.74
$
Encumbrances Payable
13,921.49
101,258.23
$
SCHEDULE OF 2018 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
135
EXHIBIT D-10
Balance, December 31, 2018
1,595.83
$
Increased By:
Current Appropriations
54,150.00
55,745.83
Decreased By:
Cash Disbursed
54,150.00
$
Accrued Interest Cancelled
116.66
54,266.66
Balance, December 31, 2019
1,479.17
$
Principal Outstanding
Interest
December 31, 2019
Rate
From
To
Months
Amount
Serial Bonds (Capital):
355,000.00
$
Various
12/1/2019
12/31/2019
1
1,479.17
$
1,479.17
$
Analysis of Accrued Interest
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST ON BONDS
136
EXHIBIT D-11
Balance, December 31, 2018
1,073.01
$
Increased By:
Overpayments
1,894.13
2,967.14
Decreased By:
Overpayments Applied
1,073.01
Balance, December 31, 2019
1,894.13
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY OPERATING FUND
SCHEDULE OF WATER RENT OVERPAYMENTS
137
EXHIBIT D-12
Balance
Balance
Date of
Interest
December 31,
December 31,
Purpose
Issue
Original Issue
Date
Amount
Rate
2018
Decreased
2019
Refunding Bonds
12/24/13
515,000.00
$
12/01/20
35,000.00
5.000%
390,000.00
$
35,000.00
$
355,000.00
$
12/01/21
35,000.00
5.000%
12/01/22
40,000.00
5.000%
12/01/23
40,000.00
5.000%
12/01/24
50,000.00
5.000%
12/01/25
50,000.00
5.000%
12/01/26
50,000.00
5.000%
12/01/27
55,000.00
5.000%
390,000.00
$
35,000.00
$
355,000.00
$
December 31, 2019
Outstanding
WATER UTILITY CAPITAL FUND
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SCHEDULE OF SERIAL BONDS
FOR THE YEAR ENDED DECEMBER 31, 2019
138
EXHIBIT D-13
Balance, December 31, 2018
322,481.00
$
Increased By:
Cash Receipts
10,000.00
Balance, December 31, 2019
332,481.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
139
EXHIBIT D-14
Balance, December 31, 2018
2,818,979.73
$
Increased By:
Capital Outlay - Current Budget Appropriation
535.77
$
Serial Bonds Reduced
35,000.00
35,535.77
Balance, December 31, 2019
2,854,515.50
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
140
EXHIBIT D-15
Transfer
Ordinance
From
Paid or
Number
Date
Amount
Funded
Unfunded
Encumbrances
Charged
Funded
Unfunded
Water Plant Roof
2011-08
09/15/11
26,000.00
$
22,703.12
$
-
$
-
$
-
$
22,703.12
$
-
$
Water Capital Asset Management Plan
2018-06
11/19/18
100,000.00
$
-
88,750.00
11,250.00
12,489.00
-
87,511.00
22,703.12
$
88,750.00
$
11,250.00
$
12,489.00
$
22,703.12
$
87,511.00
$
Improvement Description
December 31, 2018
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Balance
Balance
December 31, 2019
141
EXHIBIT D-16
Balance, December 31, 2019 & 2018
122,703.12
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
142
EXHIBIT D-17
Balance, December 31, 2019 & 2018
22,703.12
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
143
EXHIBIT D-18
Balance
Ordinance
Ordinance
December 31,
Number
Date
2019 & 2018
2018-06
11/19/18
Water Capital Asset Management Plan
100,000.00
$
100,000.00
$
Improvement Description
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
FOR THE YEAR ENDED DECEMBER 31, 2019
144
SEWER UTILITY FUND
145
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146
EXHIBIT E-5
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY FUND
Balance, December 31, 2018
639,317.91
$
206,035.68
$
Increased By Receipts:
Miscellaneous Revenue Not Anticipated
22,141.65
$
-
$
Sewer Rents Receivable
535,872.09
-
Overpayments
1,584.19
-
Capital Improvement Fund
-
10,000.00
559,597.93
10,000.00
1,198,915.84
216,035.68
Decreased By Disbursements:
Budget Appropriations
465,459.16
-
Appropriation Reserves
317.12
-
465,776.28
-
Balance, December 31, 2019
733,139.56
$
216,035.68
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF CASH - TREASURER
Operating Fund
Capital Fund
147
EXHIBIT E-6
Balance
December 31,
2019
Capital Improvement Fund
216,000.00
$
Fund Balance
35.68
216,035.68
$
BOROUGH OF ENGLISHTOWN
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF ANALYSIS OF SEWER UTILITY CAPITAL FUND CASH
SEWER UTILITY CAPITAL FUND
COUNTY OF MONMOUTH, NEW JERSEY
148
EXHIBIT E-7
Balance, December 31, 2018
12,433.25
$
Increased By:
Sewer Rents Levied
534,578.77
547,012.02
Decreased By:
Cash Collections
535,872.09
$
Overpayments Applied
1,321.44
537,193.53
Balance, December 31, 2019
9,818.49
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY OPERATING FUND
SCHEDULE OF SEWER RENTS RECEIVABLE
149
EXHIBIT E-8
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2019 & 2018
975,636.40
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF FIXED CAPITAL
150
EXHIBIT E-9
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY FUND
Balance
Balance
December 31,
After
Paid or
2018
Modifications
Charged
Lapsed
Operating:
Salaries and Wages
5,457.55
$
5,457.55
$
187.86
$
5,269.69
$
Other Expenses
41,814.57
41,814.57
114.88
41,699.69
Total Operating
47,272.12
47,272.12
302.74
46,969.38
Capital Improvements:
Capital Outlay
10,000.00
10,000.00
-
10,000.00
Total Capital Improvements
10,000.00
10,000.00
-
10,000.00
Statutory Expenditures:
Contributions To:
Social Security System (O.A.S.I.)
651.02
651.02
14.38
636.64
Total Statutory Expenditures
651.02
651.02
14.38
636.64
Total Sewer Utility Appropriations
57,923.14
$
57,923.14
$
317.12
$
57,606.02
$
Appropriation Reserves
57,923.14
$
Encumbrances Payable
-
Appropriation Reserves
57,923.14
$
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF 2018 APPROPRIATION RESERVES
BOROUGH OF ENGLISHTOWN
151
EXHIBIT E-10
Balance, December 31, 2018
1,321.44
$
Increased By:
Rent Overpayments
1,584.19
2,905.63
Decreased By:
Overpayment Applied
1,321.44
Balance, December 31, 2019
1,584.19
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY OPERATING FUND
SCHEDULE OF SEWER RENT OVERPAYMENTS
152
EXHIBIT E-11
Balance, December 31, 2018
206,000.00
$
Increased By:
Cash Receipts
10,000.00
Balance, December 31, 2019
216,000.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
153
EXHIBIT E-12
Balance, December 31, 2019 & 2018
975,636.40
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
154
EXHIBIT E-13
Balance, December 31, 2019 & 2018
119.95
$
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
SEWER UTILITY OPERATING
SCHEDULE OF PROPERTY ACQUIRED FOR TAXES
FOR THE YEAR ENDED DECEMBER 31, 2019
155
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156
PAYROLL FUND
157
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158
EXHIBIT F-1
COUNTY OF MONMOUTH, NEW JERSEY
Balance, December 31, 2018
28,071.69
$
Increased By Receipts:
Interfund - Current Fund
36,236.12
$
Payroll Taxes Payable
644,221.78
680,457.90
708,529.59
Decreased By Disbursements:
Interfund - Current Fund
36,236.12
Payroll Taxes Payable
630,165.71
666,401.83
Balance, December 31, 2019
42,127.76
$
BOROUGH OF ENGLISHTOWN
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2019
PAYROLL FUND
159
EXHIBIT F-2
Balance, December 31, 2018
11,983.60
$
Increased By:
Cash Receipts
36,236.12
48,219.72
Decreased By:
Cash Disbursements
36,236.12
Balance, December 31, 2019
11,983.60
$
BOROUGH OF ENGLISHTOWN
COUNTY OF MONMOUTH, NEW JERSEY
PAYROLL FUND
SCHEDULE OF DUE TO CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2019
160
EXHIBIT F-3
COUNTY OF MONMOUTH, NEW JERSEY
Balance
Balance
December 31,
December 31,
2018
Receipts
Disbursements
2019
Federal Withholding Taxes
-
$
129,463.69
$
129,463.69
$
-
$
State Income Tax
-
41,080.66
41,080.66
-
Social Security Taxes
-
107,695.16
107,695.16
-
State Pension Systems
PERS
41.34
75,366.97
73,087.05
2,321.26
PFRS
99.18
218,433.36
212,630.67
5,901.87
DCRP
-
11,802.74
11,802.74
-
PBA Dues
-
6,370.00
6,370.00
-
AFLAC
104.64
1,255.68
1,255.68
104.64
Unemployment
4,415.62
5,794.65
3,509.09
6,701.18
Health Insurance
15,281.77
34,822.50
34,989.06
15,115.21
Flexible Spending Account
(4,056.00)
4,056.00
-
-
Disability Insurance
201.54
5,979.24
6,180.78
-
Family Leave Insurance
-
661.13
661.13
-
Deferred Compensation
-
1,440.00
1,440.00
-
16,088.09
$
644,221.78
$
630,165.71
$
30,144.16
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF PAYROLL DEDUCTIONS PAYABLE
PAYROLL FUND
161
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162
GENERAL FIXED ASSETS ACCOUNT GROUP
163
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164
EXHIBIT G-1
Balance,
Balance
December 31,
December 31,
2018
Additions
Deletions
2019
Land
2,039,400.00
$
-
$
-
$
2,039,400.00
$
Buildings
510,300.00
-
-
510,300.00
Equipment
1,032,558.19
-
-
1,032,558.19
3,582,258.19
$
-
$
-
$
3,582,258.19
$
FOR THE YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ENGLISHTOWN
SCHEDULE OF GENERAL FIXED ASSETS
GENERAL FIXED ASSETS ACCOUNT GROUP
COUNTY OF MONMOUTH, NEW JERSEY
165
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166
COMMENTS AND RECOMMENDATIONS
167
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168
BOROUGH OF ENGLISHTOWN
PART II
SCHEDULE OF FINANCIAL STATEMENT FI NDINGS -
GOVERNMENT AUDITING STANDARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
169
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170
BOROUGH OF ENGLISHTOWN
SCHEDULE OF FINANCIAL STATEMENT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section II – Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance
related to the basic financial statements that are required to be reported in accordance with Government
Auditing Standards and with audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
None.
171
BOROUGH OF ENGLISHTOWN
SCHEDULE OF FINANCIAL STATEMENT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section III – Federal Awards & State Financial Assistance Findings & Questioned Costs
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance,
including questioned costs, related to the audit of major federal and state programs, as required by Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principals, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB’s
Circular 15-08.
FEDERAL AWARDS
N/A – Federal single audit not required
STATE FINANCIAL ASSISTANCE
N/A – State single audit not required
172
BOROUGH OF ENGLISHTOWN
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2019
This section identifies the status of prior year findings related to the financial statements, federal awards
and state financial assistance that are required to be reported in accordance with Government Auditing
Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance), and
New Jersey OMB’s Circular 15-08.
FINANCIAL STATEMENT FINDINGS
No Prior Year Findings.
FEDERAL AWARDS
N/A – No Federal Single Audit in prior year.
STATE FINANCIAL ASSISTANCE
N/A – No State Single Audit in prior year.
173
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174
BOROUGH OF ENGLISHTOWN
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
175
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176
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2019:
Name
Title
Mayor
Council President
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Attorney
Chief Financial Officer
Tax Collector
Court Administrator
Tax Assessor
Magistrate
Water/Sewer Utilities Clerk
Municipal Clerk
Deputy Court Administrator
Thomas Reynolds
Gregory Wojyn
Cindy Robilotti
Daniel Francisco
Dan Marter
Eric Mann
Maryanne Krawiec
Joseph Youssouf
Laurie Finger
Janice Garcia
Lisa Langolis
Mark Fitzpatrick
James Newman
Celia Hecht
Peter Gorbatuk
Deanna Owens
Richard Thompson
Code Official
177
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178
Honorable Mayor and Members
of the Borough Council
Borough of Englishtown
Englishtown, New Jersey 07726
In accordance with requirements prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey, the following are the General Comments and
Recommendations for the year ended December 31, 2019.
GENERAL COMMENTS:
Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)
N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or
hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of
public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the
Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as
is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by
contract or agreement.
The bid threshold in accordance with N.J.S.A. 40A:11-4 was $17,500 for the year ended December 31, 2019.
It is pointed out that the governing body of the municipality has the responsibility of determining whether
the expenditures in any category will exceed the statutory minimum within the fiscal year. Where
question arises as to whether any contract or agreement might result in violation of the statute, the
solicitor's opinion should be sought before a commitment is made.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an
accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine
whether any clear-cut violations existed.
Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid
threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” other
than those where bids had been previously sought by public advertisement or where a resolution had been
previously adopted under the provisions of N.J.S.A.40A:11-6.
179
Collection of Interest on Delinquent Taxes and Assessments
N.J.S.54:4-67, provides the method for authorizing interest and the maximum rates to be charged for the
nonpayment of taxes or assessments on or before the date when they would become delinquent.
The governing body on January 2, 2019 adopted the following resolution authorizing interest to be
charged on delinquent taxes:
NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non-
payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first
$1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of
$1,500.00; and
BE IT FURTHER RESOLVED, by the Borough Council of the Borough of Englishtown, that the
Tax Collector shall allow that no interest will be charged on payments received and made by the
tenth calendar day following the date upon which the same became payable; and
BE IT FURTHER RESOLVED, by the Borough Council of the Borough of Englishtown, that the
Tax Collector shall charge, in addition to the interest for delinquent taxes, as noted above, a
penalty of six (6%) percent of the amount of the delinquency in taxes in excess of $10,000.00 to a
taxpayer who fails to pay the delinquency prior to the end of the calendar year.
It appears from an examination of the Collector's record that interest was collected in accordance with the
foregoing resolution.
OTHER COMMENTS (FINDINGS):
None.
RECOMMENDATIONS:
None.
180
Appreciation
We express our appreciation for the assistance and courtesies extended to the members of the audit team.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P. C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Red Bank, New Jersey
June 30, 2020
181
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