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Audit Report for the Year Ended 12-31-17
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Executive Summary
The Township of Little Egg Harbor's audit report for the fiscal year ending December 31, 2017, provides an overview of the township's financial position, operational changes, revenues, and expenditures. Prepared in accordance with accounting principles and practices prescribed by the New Jersey Division of Local Government Services, the audit encompasses various funds, including the Current Fund, Trust Fund, General Capital Fund, and Payroll Fund. The report includes independent auditor’s reports on the financial statements and on internal control over financial reporting and compliance, as well as the regulatory basis financial statements. It also identifies deficiencies in internal control related to the posting of tax adjustments and other closing entries in the general ledger, which management intends to address.
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--- Document: Audit Report for the Year Ended 12-31-17 Document ---
TOWNSHIP OF LITTLE EGG HARBOR
AUDIT REPORT FOR THE YEAR
ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
COUNTY OF OCEAN
CONTENTS
PART 1
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 Governmental Auditing Standards
5
Financial Statements – Regulatory Basis: EXHIBITS
Current Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
A
9
Statement of Operations & 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
18
General Capital Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
C
19
Payroll Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
D
20
Fixed Assets:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
E
21
Notes to Financial Statements
25
Supplemental Exhibits:
Current Fund:
Schedule of Cash - Treasurer
A-4
59
Schedule of Taxes Receivable & Analysis of Property
Tax Levy
A-5
60
Schedule of Tax Title Liens
A-6
61
Schedule of Property Acquired for Taxes
A-7
61
Statement of Revenue Accounts Receivable
A-8
62
Schedule of 2016 Appropriation Reserves
A-9
63
(continued)
EXHIBITS PAGE
Supplemental Exhibits (continued):
Current Fund (continued):
Schedule of Local District Tax
A-10
64
Schedule of Regional High School Tax Payable
A-11
64
Schedule of Deferred Charges
A-12
N/A
Schedule of Various Reserves
A-13
65
Schedule of State and Federal Grants Receivable
A-14
66
Schedule of Reserves for State and Federal
Grants - Appropriated
A-15
67
Schedule of Reserve for State Grants - Unappropriated
A-16
68
Trust Fund:
Schedule of Cash - Treasurer
B-1
71
Schedule of Cash – Collector – Tax Title Lien
Redemption
B-2
71
Schedule of Cash Dog Warden
B-3
72
Schedule of Reserve for Dog Fund Expenditures
B-4
72
Schedule of Deposits for Redemption of Tax Sale
Certificates
B-5
72
Schedule of Reserve for Escrow Deposits
B-6
73
Schedule of Reserve for Forfeited Property
B-7
73
Schedule of Reserve for Planning Board
B-8
74
Schedule of Reserve for Recreation
B-9
74
Schedule of Reserve for Open Space
B-10
75
Schedule of Reserve for Community Center
B-11
75
Schedule of Reserve for Federal Forfeiture Law
B-12
76
Schedule of Reserve for Sick and Vacation Time Trust
B-13
76
Schedule of Reserve for COAH Trust Fund
B-14
77
General Capital Fund:
Schedule of Fund Balance
C-1
81
Schedule of Cash – Treasurer
C-2
81
Analysis of Cash
C-3
82
Schedule of Deferred Charges to Future Taxation–Funded
C-4
84
Schedule of Deferred Charges to Future Taxation–Unfunded
C-5
85
Schedule of Capital Improvement Fund
C-6
86
Schedule of Improvement Authorizations
C-7
87
Schedule of Bond Anticipation Notes
C-8
88
Schedule of General Serial Bonds
C-9
89
Schedule of Green Trust Loan Payable
C-10
90
Schedule of Bonds & Notes Authorized But Not Issued
C-11
91
Schedule of State Road Aid Allotments Receivable
C-12
92
Payroll Fund:
Statement of Payroll Fund Cash
D-1
95
Statement of Payroll Taxes Payable
D-2
95
(continued)
EXHIBITS PAGE
PART II
Schedule of Findings and Questioned Costs – Government Auditing Standards:
Schedule of Findings and Questioned Costs
99
Summary Schedule of Prior Year Audit Findings and Questioned Costs
as Prepared by Management
100
PART III
Letter of Comments and Recommendations – Regulatory Basis:
Officials in Office
103
General Comments
105
Other Comments (Findings)
106
Recommendations
106
Acknowledgment
107
(concluded)
*****************
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************
TOWNSHIP OF LITTLE EGG HARBOR
COUNTY OF OCEAN
PART I
INDEPENDENT AUDITOR'S REPORTS
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
This page intentionally left blank
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members
of the Township Committee
Township of Little Egg Harbor
Little Egg Harbor, New Jersey
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 Township of Little Egg Harbor as of December 31,
2017 and 2016 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, 2017 and the related notes to the financial statements,
which collectively comprise the Township’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 Township’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 Township of Little Egg Harbor 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 Township, as of December 31, 2017 and 2016, 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 Township, as of
December 31, 2017 and 2016, 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, 2017 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 Township’s basic financial statements. The supplemental schedules presented for the
various funds and letter of comments and recommendations section 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 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 8, 2018 on
our consideration of the Township'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 Township's internal control over
financial reporting and compliance.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P.C.
Kevin P. Frenia
Certified Public Accountant
Registered Municipal Accountant
RMA No. 435
Medford, New Jersey
June 8, 2018
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 Township Committee
Township of Little Egg Harbor
Little Egg Harbor, New Jersey
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 Township of Little Egg Harbor, as of and for the year ended
December 31, 2017, and the related notes to the financial statements, which collectively comprise the
Township's basic financial statements, and have issued our report thereon dated June 8, 2018. Our report
indicated that the Township’s financial statements were not prepared in accordance with accounting
principles generally accepted in the United States of America but rather prepared in accordance with the
regulatory basis of accounting prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Township'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 Township’s internal control. Accordingly,
we do not express an opinion on the effectiveness of the Township’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were
not identified. However, as described in the accompanying schedule of findings and questioned costs, we
identified certain deficiencies in internal control that we consider to be material weaknesses and
significant deficiencies.
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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We
consider the deficiencies described in the accompanying schedule of findings and questioned costs to be
material weaknesses as Finding No. 2017-001.
5
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. We consider the deficiencies described in the accompanying schedule of findings and
questioned costs to be significant deficiencies as Finding No. 2017-001.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Township'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 and audit requirements as prescribed by
the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
Township of Little Egg Harbor’s Response to Findings
The Township of Little Egg Harbor’s response to the findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The Township’s response was not subjected to
the auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on it.
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 Township'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
Township’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Respectfully Submitted,
HOLMAN FRENIA ALLISON, P.C.
Kevin P. Frenia
Certified Public Accountant
Registered Municipal Accountant
RMA No. 435
Medford, New Jersey
June 8, 2018
6
BASIC FINANCIAL STATEMENTS
7
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8
EXHIBIT A
(Page 1 of 2)
CURRENT FUND
ASSETS
REFERENCE
2017
2016
Operating Fund:
Cash:
Treasurer
A-4
9,887,440.97
$
9,329,755.70
$
Change Fund
A
1,870.00
1,870.00
Total Cash
9,889,310.97
9,331,625.70
Other Receivables:
Due From State of New Jersey
A
244,124.89
206,236.51
Total Other Receivables
244,124.89
206,236.51
Receivables & Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-5
63,632.17
79,043.96
Tax Title Liens Receivable
A-6
647,630.63
612,368.40
Property Acquired/Assessed Valuation
A-7
5,757,700.00
5,757,700.00
Revenue Accounts Receivable
A-8
14,024.06
13,176.33
Due from Trust Other
B
79,307.25
102,757.37
Due from Payroll
D
25,736.64
4,376.62
Total Receivables
6,588,030.75
6,569,422.68
Special Emergency Appropropriations:
Community Disaster Loan
A
4,348,463.18
4,321,900.68
Total Deferred Charges
4,348,463.18
4,321,900.68
Total Operating Fund Assets
21,069,929.79
20,429,185.57
Federal & State Grant Fund:
Cash - Treasurer
A-4
977,541.95
501,833.69
Grants Receivable
A-14
1,985,939.57
2,832,513.40
Due from Current Fund
A
229,846.77
204,889.70
Total Federal & State Grant Fund Assets
3,193,328.29
3,539,236.79
Total Assets
24,263,258.08
$
23,968,422.36
$
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2017 AND 2016
STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
9
EXHIBIT A
(Page 2 of 2)
LIABILITIES RESERVES & FUND BALANCE
REFERENCE
2017
2016
Operating Fund:
Appropriation Reserve:
Encumbered
A-3/A-9
56,691.20
$
101,414.73
$
Unencumbered
A-3
1,323,988.34
2,391,002.56
Prepaid Taxes
A-4
1,765,588.34
618,861.18
Tax Overpayments
A
165,325.29
56,920.22
Due County for Added & Omitted Taxes
A
128,995.83
156,026.11
Due Municipal Open Space Tax Fund
B
-
112,229.83
Local School Taxes Payable
A-10
1,033,336.00
785,174.00
Regional School Taxes Payable
A-11
185,423.00
250,490.00
Special District Taxes Payable
A
20,740.00
20,840.00
Due Bass River - UCC Fees
A
3,110.20
1,953.70
Due to State - DCA Training Fees
A
17,828.83
23,781.83
Due General Capital Fund
C
198,995.86
32,260.01
Due to Grant Fund
A
229,846.77
204,889.70
Reserve for Insurance Proceeds
A-13
2,419.00
32,000.00
Reserve for Reassessment
A-13
100,047.00
100,047.00
Reserve for Closed Escrow Accounts
A-13
54,291.00
54,291.00
Reserve for FEMA Proceeds
A
50,000.00
-
CDL - Loan Payable
A
4,250,000.00
4,250,000.00
CDL - Interest Payable
A
98,463.18
71,900.68
Total Operating Liabilities
9,685,089.84
9,264,082.55
Reserve for Receivables
A
6,588,030.75
6,569,422.68
Fund Balance
A-1
4,796,809.20
4,595,680.34
Total Operating Fund
21,069,929.79
20,429,185.57
Federal & State Grant Fund:
Reserve for State Grants:
Appropriated Reserves
A-15
2,726,886.33
3,471,457.36
Unappropriated Reserves
A-16
13,986.42
13,986.42
Encumbrances Payable
A-15
7,927.40
53,793.01
Due to General Capital Fund
C
444,528.14
-
Total Federal & State Grant Fund
3,193,328.29
3,539,236.79
Total Liabilities Reserve & Fund Balance
24,263,258.08
$
23,968,422.36
$
The accompanying Notes to the Financial Statements are an integral part of this Statement
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2017 AND 2016
STATEMENT OF ASSETS, LIABILITIES, RESERVES
10
EXHIBIT A-1
2017
2016
Revenue & Other Income Realized:
Fund Balance Utilized
2,850,000.00
$
2,950,000.00
$
Miscellaneous Revenues Anticipated
3,903,222.51
6,160,088.97
Receipts From Delinquent Taxes
137,618.41
42,194.74
Receipts From Current Taxes
54,748,254.81
54,217,629.37
Nonbudget Revenues
792,584.27
238,167.82
Other Credits to Income:
Prior Year Accounts Payable Cancelled
-
15,381.00
Unexpended Balance of Appropriation Reserves
1,533,417.41
1,212,218.03
Total Revenue & Other Income
63,965,097.41
64,835,679.93
Expenditures:
Budget & Emergency Appropriations:
Appropriations Within "CAPS":
Operations:
Salaries and Wages
9,014,855.00
9,129,400.00
Other Expenses
7,235,617.23
7,803,559.36
Deferred Charges & Statutory Expenditures
2,158,862.32
2,156,536.00
Appropriations Excluded From "CAPS":
Operations:
Salaries and Wages
425,000.00
450,000.00
Other Expenses
599,263.43
578,461.33
Capital Improvement Fund
100,000.00
-
Municipal Debt Service
1,733,048.86
1,483,275.94
Deferred Charges
-
1,737,194.00
County Taxes
9,798,551.88
9,789,039.36
Local District School Tax
13,152,713.00
12,789,659.00
Regional High School Tax
14,764,513.00
14,727,765.00
Special District Taxes
1,673,951.00
1,597,452.00
Municipal Open Space
23,349.96
57,066.22
Tax Overpayment Adjustment
68,965.00
92,157.00
Interfund Advances
165,277.87
147,170.38
Total Expenditures
60,913,968.55
62,538,735.59
Excess/(Deficit) in Revenue
3,051,128.86
2,296,944.34
Adjustments to Income before Fund Balance
Expenditures Included Above Which Are by Statute Deferred Charges
to Budget of Succeeding Years
-
-
Statutory Excess to Fund Balance
3,051,128.86
2,296,944.34
Fund Balance January 1,
4,595,680.34
5,248,736.00
Total
7,646,809.20
7,545,680.34
Decreased by: Utilized as Anticipated Revenue
2,850,000.00
2,950,000.00
Fund Balance December 31, 2016
4,796,809.20
$
4,595,680.34
$
The accompanying Notes to the Financial Statements are an integral part of this Statement
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
STATEMENT OF OPERATIONS AND CHANGES
IN FUND BALANCE - REGULATORY BASIS
11
EXHIBIT A-2
ANTICIPATED
ADDED BY
EXCESS OR
BUDGET
N.J.S.40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
2,850,000.00
$
-
$
2,850,000.00
$
-
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
10,564.00
-
10,376.00
(188.00)
Other
105,000.00
-
93,915.55
(11,084.45)
Municipal Court
240,000.00
-
231,965.44
(8,034.56)
Interest & Cost on Taxes
80,000.00
-
101,943.18
21,943.18
Payments in Lieu of Taxes
65,000.00
-
68,316.48
3,316.48
Energy Receipts Tax
1,299,939.00
-
1,299,939.00
-
Uniform Construction Code Fees
733,000.00
-
754,201.00
21,201.00
Garden State Trust
149,117.00
-
149,117.00
-
Tower Rental
192,500.00
-
183,987.39
(8,512.61)
SRO Reimbursement
185,000.00
-
327,474.10
142,474.10
CATV Franchise Fees
80,000.00
-
92,458.94
12,458.94
Additional Revenues Offset With Appropriations:
Clean Communities Program
-
53,425.51
53,425.51
-
Recycling Revenue and Residue
-
21,676.40
21,676.40
-
Ocean County Recycling Revenue and Residue
-
9,849.02
9,849.02
-
Body Armor Replacement
-
3,794.15
3,794.15
-
Recycling Tonnage Grant
31,060.86
-
31,060.86
-
Safe and Secure Communities
60,000.00
-
60,000.00
-
Alcohol Education and Rehabilitation
782.00
64.34
846.34
-
Policy and Planning CZM
-
153.75
153.75
-
National Fish and Wildlife
-
2,540.00
2,540.00
-
NJDEP Living Shore Grant
-
400,000.00
400,000.00
-
OEM Reimbursement Grant
-
6,182.40
6,182.40
-
Total Miscellaneous
3,231,962.86
497,685.57
3,903,222.51
173,574.08
Receipts from Delinquent Taxes
40,000.00
-
137,618.41
97,618.41
Subtotal General Revenues
6,121,962.86
497,685.57
6,890,840.92
271,192.49
Amount to be Raised by Taxes for Support to Municipal
Budget - Local Tax for Municipal Purposes
15,000,655.81
-
15,688,832.23
688,176.42
Budget Totals
21,122,618.67
497,685.57
22,579,673.15
959,368.91
Nonbudget Revenues
-
-
792,584.27
792,584.27
Total
21,122,618.67
$
497,685.57
$
23,372,257.42
$
1,751,953.18
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
12
EXHIBIT A-2
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
Allocation of Current Tax Collections:
Revenue From Collections
54,748,254.81
$
Allocated to - School, County & Special District Taxes
39,413,078.84
Balance for Support of Municipal Budget Revenues
15,335,175.97
Add: Appropriation - "Reserve for Uncollected Taxes"
353,656.26
Amount for Support of Municipal Budget Appropriations
15,688,832.23
$
Receipts From Delinquent Taxes:
Delinquent Tax Collections
26,381.30
$
Tax Title Lien Collections
111,237.11
Total Receipts From Delinquent Taxes
137,618.41
$
Analysis of Nonbudget Revenue:
Treasurer:
Insurance Reimbursements
45,455.49
$
Trash Cans
16,020.00
Restitution
352.50
Senior & Vet Admin Fee
6,675.92
FEMA Reimbursement
648,308.63
Other
75,771.73
Total Analysis of Nonbudget Revenue
792,584.27
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
ANALYSIS OF REALIZED REVENUE
13
EXHIBIT A-3
(Page 1 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
General Government:
General Administration:
Salaries and Wages
70,000.00
$
65,500.00
$
50,171.40
$
-
$
15,328.60
$
-
$
Other Expenses
15,000.00
15,000.00
1,540.00
-
13,460.00
-
Mayor and Committee:
Salaries and Wages
83,000.00
83,000.00
82,917.87
-
82.13
-
Other Expenses
5,000.00
5,000.00
1,628.15
-
3,371.85
-
Municipal Clerk:
Salaries and Wages
247,000.00
247,000.00
233,851.92
-
13,148.08
-
Other Expenses
65,000.00
69,500.00
68,770.84
505.56
223.60
-
Financial Administration (Treasury):
Salaries and Wages
254,000.00
247,000.00
245,037.00
-
1,963.00
-
Other Expenses
45,000.00
40,000.00
31,957.03
239.37
7,803.60
-
Audit Services:
Other Expenses
67,500.00
67,500.00
35,161.00
-
32,339.00
-
Revenue Administration (Tax Collection):
Salaries and Wages
186,000.00
186,000.00
182,033.03
-
3,966.97
-
Other Expenses:
Tax Sale Costs
10,000.00
10,000.00
5,508.42
105.20
4,386.38
-
Miscellaneous Other Expenses
25,000.00
25,000.00
14,460.61
3,678.45
6,860.94
-
Tax Assessment Administration:
Salaries and Wages
238,000.00
238,000.00
235,612.31
-
2,387.69
-
Other Expenses
7,500.00
7,500.00
2,732.89
-
4,767.11
-
Liquidation of Tax Title Liens & Foreclosed
Property - Other Expenses
5,000.00
5,000.00
-
-
5,000.00
-
Legal Services (Legal Department):
Other Expenses
260,000.00
330,000.00
306,335.21
-
23,664.79
-
Engineering Services:
Other Expenses
120,000.00
129,500.00
112,352.14
-
17,147.86
-
Economic Development Agencies:
Salaries and Wages
1,200.00
1,200.00
-
-
1,200.00
-
Other Expenses
3,500.00
3,500.00
900.00
-
2,600.00
-
Land Use Administration:
Planning Board:
Salaries and Wages
21,000.00
21,000.00
20,400.00
-
600.00
-
Other Expenses
10,000.00
9,000.00
959.00
-
8,041.00
-
Zoning Board of Adjustment:
Salaries and Wages
13,000.00
13,000.00
12,500.00
-
500.00
-
Other Expenses
10,000.00
11,000.00
10,139.42
-
860.58
-
Zoning Officer:
Salaries and Wages
256,000.00
246,000.00
245,960.11
-
39.89
-
Other Expenses
5,000.00
5,000.00
2,113.19
160.00
2,726.81
-
Insurance:
Liability Insurance
490,000.00
490,000.00
487,670.78
-
2,329.22
-
Unemployment Insurance
37,000.00
37,000.00
34,229.68
-
2,770.32
-
Group Insurance for Employees
2,470,666.55
2,470,666.55
2,465,752.90
-
4,913.65
-
Health Benefit Waiver
177,000.00
177,000.00
176,722.16
-
277.84
-
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
APPROPRIATIONS
14
EXHIBIT A-3
(Page 2 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Public Safety Functions:
Police Department:
Salaries and Wages
5,420,000.00
5,420,000.00
5,092,476.50
-
327,523.50
-
Other Expenses
204,000.00
204,000.00
173,496.50
13,440.85
17,062.65
-
Office of Emergency Management:
Salaries and Wages
22,500.00
22,500.00
22,500.00
-
-
-
Other Expenses
5,000.00
1,000.00
920.00
-
80.00
-
Aid to Volunteer Fire Company
2,400.00
2,400.00
2,400.00
-
-
First Aid Squad Contribution
70,000.00
70,000.00
-
-
70,000.00
-
Municipal Prosecutor:
Other Expenses
55,000.00
55,000.00
44,250.00
-
10,750.00
-
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
220,000.00
232,000.00
229,634.40
-
2,365.60
-
Other Expenses
110,000.00
98,000.00
67,518.47
3,877.75
26,603.78
-
Solid Waste Sanitation:
Salaries and Wages
245,000.00
255,000.00
248,111.51
-
6,888.49
-
Other Expenses
175,000.00
165,000.00
108,859.11
7,776.21
48,364.68
-
Bulk Property Maintance Pick-Up
30,000.00
22,000.00
-
-
22,000.00
-
Solid Waste Recycling:
Salaries and Wages
312,000.00
320,000.00
319,779.14
-
220.86
-
Other Expenses
35,000.00
27,000.00
24,998.58
88.08
1,913.34
-
Buildings & Grounds:
Salaries and Wages
270,000.00
270,000.00
264,051.93
-
5,948.07
-
Other Expenses
125,000.00
125,000.00
89,434.94
8,073.08
27,491.98
-
Contracted Custodial Services
-
-
-
Vehicle Maintenance:
Salaries and Wages
210,000.00
210,000.00
207,917.46
-
2,082.54
-
Other Expenses
150,000.00
150,000.00
128,467.29
3,617.06
17,915.65
-
Municipal Services Act:
Other Expenses
60,000.00
60,000.00
3,414.12
-
56,585.88
-
County Mosquito Control Agency:
Salaries and Wages
12,000.00
12,000.00
10,257.09
-
1,742.91
-
Other Expenses
60,000.00
60,000.00
8,637.94
-
51,362.06
-
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
12,500.00
7,455.00
200.00
-
7,255.00
-
Other Expenses
7,500.00
7,500.00
3,006.20
200.00
4,293.80
-
Environmental Health Services:
Salaries and Wages
1,200.00
1,200.00
700.00
-
500.00
-
Other Expenses
200.00
200.00
200.00
-
-
-
Animal Control Services:
Other Expenses
60,000.00
60,000.00
44,807.00
-
15,193.00
-
Contributions to Social Service Agencies - Statutory:
Long Beach Island Community Center
1,000.00
1,000.00
-
-
1,000.00
-
Providence House
2,500.00
2,500.00
-
-
2,500.00
-
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
APPROPRIATIONS
EXPENDED
15
EXHIBIT A-3
(Page 3 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Park & Recreation Functions:
Recreation Services & Programs:
Salaries and Wages
102,000.00
118,500.00
114,374.09
-
4,125.91
-
Other Expenses
40,000.00
23,500.00
18,871.32
333.67
4,295.01
-
Senior Center/Community Activities:
Salaries and Wages
2,500.00
2,500.00
2,100.00
-
400.00
-
Other Expenses
2,500.00
-
-
-
-
-
Utility Expenses & Bulk Purchases:
Electricity
190,000.00
190,000.00
162,851.22
-
27,148.78
-
Street Lighting
395,000.00
395,000.00
365,109.76
-
29,890.24
-
Telephone
190,000.00
190,000.00
161,104.10
1,378.00
27,517.90
-
Fuel Oil/Natural Gas
40,000.00
40,000.00
26,089.07
-
13,910.93
-
Gasoline
205,000.00
205,000.00
183,539.82
9,682.20
11,777.98
-
Landfill/Solid Waste Disposal Costs:
Sanitary Landfill
750,000.00
750,000.00
750,000.00
-
-
-
Uniform Construction Code Enforcement Functions:
Construction Code Official:
Salaries and Wages
500,000.00
465,000.00
426,248.63
-
38,751.37
-
Other Expenses
15,000.00
15,000.00
7,167.68
308.86
7,523.46
-
Municipal Court:
Salaries and Wages
331,000.00
331,000.00
298,757.04
-
32,242.96
-
Other Expenses
25,000.00
25,000.00
13,791.01
3,127.29
8,081.70
-
Public Defender:
Other Expenses
50,000.00
50,000.00
34,860.50
-
15,139.50
-
Other Common Operating Functions (Unclassified):
Municipal Alliance Council
25,000.00
15,850.68
15,850.02
-
0.66
-
Celebration of Public Events:
Other Expenses
8,000.00
8,000.00
6,000.00
-
2,000.00
-
Relocation Assistance:
Other Expenses
500.00
500.00
-
-
500.00
-
Schedule "C":
Other Expenses
135,000.00
135,000.00
-
-
135,000.00
-
Accumulated Sick & Vacation Fund
100,000.00
100,000.00
100,000.00
-
-
-
Reserve for Disputed Contracts
75,000.00
75,000.00
61,105.74
-
13,894.26
-
Total Operations Within "CAPS"
16,256,666.55
16,250,472.23
14,911,275.24
56,591.63
1,282,605.36
-
Detail:
Salaries and Wages
9,029,900.00
9,014,855.00
8,545,591.43
-
469,263.57
-
Other Expenses
7,226,766.55
7,235,617.23
6,365,683.81
56,591.63
813,341.79
-
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Statutory Expenditures:
Social Security System (O.A.S.I.)
685,000.00
685,000.00
672,582.54
-
12,417.46
-
Defined Contribution Retirement Program
3,000.00
3,000.00
1,632.42
-
1,367.58
-
Consolidated Police & Firemen's
Pension
1,016,075.00
1,019,526.32
1,019,526.32
-
-
-
Public Employees Retirement
System
448,593.00
451,336.00
451,336.00
-
-
-
Total Deferred Charges & Statutory
Expenditures Within "CAPS"
2,152,668.00
2,158,862.32
2,145,077.28
-
13,785.04
-
Total General Appropriations for Municipal
Purposes Within "CAPS"
18,409,334.55
18,409,334.55
17,056,352.52
56,591.63
1,296,390.40
-
EXPENDED
APPROPRIATIONS
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
16
EXHIBIT A-3
(Page 4 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Operations Excluded From "CAPS":
Public & Private Programs Offset by Revenues:
Clean Communities Program Grant
-
53,425.51
53,425.51
-
-
-
Recycling Revenue and Residue
-
21,676.40
21,676.40
-
-
-
Ocean County Recycling Revenue Share
-
9,849.02
9,849.02
-
-
-
Body Armor Replacement
-
3,794.15
3,794.15
-
-
-
Recycling Tonnage Grant
31,060.86
31,060.86
31,060.86
-
-
-
Safe & Secure Communities
60,000.00
60,000.00
60,000.00
-
-
-
Policy and Planning CZM
-
153.75
153.75
-
-
-
National Fish and Wildlife
-
2,540.00
2,540.00
-
-
-
NJDEP Living Shore Grant
-
400,000.00
400,000.00
-
-
-
OEM Reimbursement Grant
-
6,182.40
6,182.40
-
-
-
Alcohol Education Rehab Enforcement
782.00
846.34
846.34
-
-
-
Police Dispatch/911:
Salaries and Wages
425,000.00
425,000.00
405,673.35
-
19,326.65
-
Other Expenses
4,500.00
4,500.00
1,364.14
99.57
3,036.29
-
Supplemental Aid to Fire Districts
5,235.00
5,235.00
-
-
5,235.00
-
Total Operations Excluded from
"CAPS"
526,577.86
1,024,263.43
996,565.92
99.57
27,597.94
-
Detail:
Salaries and Wages
425,000.00
425,000.00
405,673.35
-
19,326.65
-
Other Expenses
101,577.86
599,263.43
590,892.57
99.57
8,271.29
-
Capital Improvements - Excluded from "CAPS":
Capital Improvement Fund
100,000.00
100,000.00
100,000.00
-
-
-
Total Capital Improvements - Excluded
from CAPS
100,000.00
100,000.00
100,000.00
-
-
-
Municipal Debt Service - Excluded From "CAPS":
Payment of Bond Principal
840,000.00
840,000.00
840,000.00
-
-
-
Payment of Bond Anticipation Notes
& Capital Notes
500,445.00
500,445.00
500,445.00
-
-
-
Interest on Bonds
218,327.00
218,327.00
218,327.00
-
-
-
Interest on Notes
96,224.00
96,224.00
96,223.26
-
-
0.74
Green Acres Trust Loan Program:
Principal & Interest
78,054.00
78,054.00
78,053.60
-
-
0.40
Total Municipal Debt Service Excluded
From "CAPS"
1,733,050.00
1,733,050.00
1,733,048.86
-
-
1.14
Total General Appropriations Excluded
From "CAPS"
2,359,627.86
2,857,313.43
2,829,614.78
99.57
27,597.94
1.14
Subtotal General Appropriations
20,768,962.41
21,266,647.98
19,885,967.30
56,691.20
1,323,988.34
1.14
Reserve For Uncollected Taxes
353,656.26
353,656.26
353,656.26
-
-
-
Total General Appropriations
21,122,618.67
$
21,620,304.24
$
20,239,623.56
$
56,691.20
$
1,323,988.34
$
1.14
$
Adopted Budget
21,122,618.67
$
Added by N.J.S.40A:4-87
497,685.57
Total
21,620,304.24
$
Federal & State Grants
589,528.43
$
Reserve for Uncollected Taxes
353,656.26
Refunds
(459,658.90)
Due to General Capital - Capital Improvement Fund
100,000.00
Disbursed
19,656,097.77
Total
20,239,623.56
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
APPROPRIATIONS
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
CURRENT FUND
17
EXHIBIT B
ASSETS
REFERENCE
2017
2016
Assessment Fund:
Cash
B-1
54,096.41
$
54,096.41
$
Total Assessment Fund
54,096.41
54,096.41
Other Funds:
Cash - Treasurer
B-1
3,095,391.65
3,906,618.01
Cash - Collector
B-2
1,706,969.93
2,297,094.93
CDBG Receivable
B
3,600.00
3,600.00
Due from General Capital Fund
C
1,000,000.00
-
Due from Current Fund
A
-
112,229.83
Total Other Funds
5,805,961.58
6,319,542.77
Total Assets
5,860,057.99
$
6,373,639.18
$
LIABILITIES, RESERVES & FUND BALANCE
Assessment Fund:
Fund Balance
B
54,096.41
$
54,096.41
$
Total Assessment Fund
54,096.41
54,096.41
Other Funds:
Reserves for:
Deposits for Tax Title Redemptions
B-5
1,706,969.93
2,297,094.93
Escrow Deposits
B-6
1,351,109.86
1,328,428.45
Forfeited Property
B-7
28,798.88
23,474.19
Planning Board
B-8
80,011.94
103,800.76
Recreation Trust
B-9
2,057.00
2,057.00
COAH Funds
B-14
260,600.72
213,308.50
Open Space
B-10
2,239,689.26
2,214,290.58
Community Center
B-11
3,582.88
3,582.88
Federal Forfeiture Law Enforcement Funds
B-12
5,853.05
7,106.23
Sick/Vacation Funds
B-13
46,294.81
22,055.88
Police Community Activities
B-15
1,100.00
1,000.00
POAA Funds
B
586.00
586.00
Due to Current Fund
A
79,307.25
102,757.37
Total Other Funds
5,805,961.58
6,319,542.77
Total Liabilities, Reserves & Fund Balance
5,860,057.99
$
6,373,639.18
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
STATEMENT OF ASSETS, LIABILITIES, RESERVES
DECEMBER 31, 2017 AND 2017
AND FUND BALANCE - REGULATORY BASIS
18
EXHIBIT C
REFERENCE
2017
2016
Cash & Cash Equivalents
C-2
190,867.85
$
1,562,008.97
$
State Road Aid Allotments Receivable
C-12
396,690.16
170,498.16
Interfund Receivable - Current
A
198,995.86
32,260.01
Due from Grant Fund
A
444,528.14
-
Deferred Charges to Future Taxation:
Funded
C-4
9,313,554.31
5,721,712.57
Unfunded
C-5
12,625,629.00
16,006,324.00
Total Assets
23,170,265.32
$
23,492,803.71
$
Bond Anticipation Notes Payable
C-8
4,354,000.00
$
9,354,445.00
$
General Serial Bond
C-9
8,870,000.00
5,210,000.00
Green Trust Loan Payable
C-10
443,554.31
511,712.57
Capital Improvement Fund
C-6
32,394.00
17,644.00
Encumbrances Payable
C-7
314,388.20
420,884.93
Due To Ocean County - CDBG
C
3,722.00
3,722.00
Due to Open Space Trust
B
1,000,000.00
-
Improvement Authorizations:
Funded
C-7
961,670.57
98,386.19
Unfunded
C-7
6,720,068.16
7,698,468.79
Reserve for Receivable-State Road Aid Receivable
C
396,690.16
170,498.16
Fund Balance
C-1
73,777.92
7,042.07
Total Liabilities, Reserves & Fund Balance
23,170,265.32
$
23,492,803.71
$
There were bonds and notes authorized but not issued on December 31, 2017 of $8,271,629 and
on December 31, 2016 of $6,651,879.
The accompanying Notes to the Financial Statement are an integral part of this Statement.
LIABILITIES, RESERVES & FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ASSETS
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2017 AND 2016
STATEMENT OF ASSETS, LIABILITIES, RESERVES
19
EXHIBIT D
REFERENCE
2017
2016
Cash - Treasurer
D-1
228,900.14
$
196,472.06
$
Total
228,900.14
$
196,472.06
$
Payroll Taxes Payable
D-2
203,163.50
$
192,095.44
$
Due to Current Fund
A
25,736.64
4,376.62
Total
228,900.14
$
196,472.06
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
LIABILITIES
ASSETS
DECEMBER 31, 2017 AND 2016
AND FUND BALANCE - REGULATORY BASIS
PAYROLL FUND
STATEMENT OF ASSETS, LIABILITIES, RESERVES
20
EXHIBIT E
2017
2016
Land and Improvements
7,789,600.00
$
7,789,600.00
$
Building
10,473,776.00
10,473,776.00
Equipment
11,877,971.97
11,842,682.00
Total
30,141,347.97
$
30,106,058.00
$
Investment in Fixed Assets
30,141,347.97
$
30,106,058.00
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2017 AND 2016
FUND BALANCE - REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP
STATEMENT OF FIXED ASSETS AND
ASSETS
21
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22
TOWNSHIP OF LITTLE EGG HARBOR
COUNTY OF OCEAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
************
23
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24
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies
Description of Financial Reporting Entity - The Township of Little Egg Harbor was incorporated in
1798 and is located in the Ocean County, New Jersey. The population according to the 2010 census was
20,065.
The form of Government is known as a Township pursuant to N.J.S.A.40A:63-1 et seq. The government
consists of five (5) Committee Members who are elected at large to three (3) year staggered terms. The
Mayor is elected from and by the Members of the Committee and serves a one (1) year term. Under the
statutes the Mayor is the head of the government and acts as the executive branch. The Committee acts as
the legislative branch of government and has executive powers not assigned to the Mayor.
Component Units - The financial statements of the component unit of the Township of Little Egg Harbor
are not presented in accordance with Governmental Accounting Standards Board Statement No. 14, as
amended by GASB Statements No. 39, 61 and 80. If the provisions of GASBS No. 14, as amended by
GASB Statements No. 39, 61 and 80, had been complied with, the financial statements of the following
component unit would have been either blended or discretely presented with the financial statements of
the Township, the primary government:
Little Egg Harbor Municipal Utilities Authority
823 Radio Road
Post Office Box 660
Little Egg Harbor, New Jersey 08087-0660
Annual financial reports may be inspected directly at the office of this component unit during regular
business hours.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the
Township 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 further in this note.
In accordance with the “Requirements”, the Township accounts for its financial transactions through the
use of separate funds, which are described as follows:
Current Fund – This fund accounts for revenues and expenditures for governmental operations
of a general nature, including federal and state grant funds.
Trust Funds – These funds account for receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created.
Trust Assessment Fund– This fund accounts for the financing of local improvements deemed to
benefit the properties against which assessments are levied.
25
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
General Capital Fund – This fund accounts for receipt and disbursement of funds for the
acquisition of general capital facilities, other than those acquired in the Current Fund.
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 Township.
Payroll Fund – This fund accounts for the receipts and disbursements of funds used to meet
obligations to employees and payroll tax liabilities.
Budgets and Budgetary Accounting - The Township 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
Township’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. Under GAAP, investments are reported at fair value but under regulatory basis of
accounting, investments are stated at cost. Therefore unrealized gains or losses on investments have not
been recorded.
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
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.
26
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
The cash management plan adopted by the Township 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
statements 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 Township has
adopted a capitalization threshold of $5,000.00, the maximum amount allowed by the Circular. 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 Township 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 Township'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.
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 Township 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.
27
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
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 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
Township’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement
of assets, liabilities, reserves and fund balance of the Township’s Current Fund; accordingly, such
amounts are not recorded as revenue until collected. Other amounts that are due the Township, which are
susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues
when received.
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
Township’s annual budget, but also the amounts required in support of the budgets of the County of
Ocean, Fire Districts, Little Egg Harbor Township School and the Pineland’s Regional School District.
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 Ocean. Operations is 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 January 10th 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.
School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the
Little Egg Harbor Township School District and the Pinelands 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 1st to June 30th.
Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year
(July I 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 Township’s annual budget protects the Township 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.
28
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
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.
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 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
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; and there have been no GASB pronouncements effective for the current year that have a
significant impact of the Township’s financial statements.
Note 2. Deposits and Investments
The Township is governed by the deposit and investment limitations of New Jersey state law.
Deposits
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank
failure, the Township’s deposits may not be returned. Although the Township 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 Township 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
29
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 2. Deposits and Investments (continued):
may pass to the Township relative to the happening of a future condition. Such funds are shown as
Uninsured and Uncollateralized in the schedule below.
As of December 31, 2017, the Township’s bank balance of $16,380,868.67 was insured or collateralized
as follows:
Insured under FDIC and GUDPA
12,434,309.96
$
Uninsured and Uncollateralized
3,946,558.71
16,380,868.67
$
Investments
The Township had no investments as of December 31, 2017.
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.
2017
2016
2015
Tax Rate
2.300
$
2.319
$
2.349
$
Apportionment of Tax Rate:
Municipal
0.657
0.661
0.695
County General
0.423
0.430
0.420
Local School
0.575
0.571
0.578
Regional School
0.645
0.657
0.656
Comparison Schedule of Tax Rates
Year
Amount
2017
2,287,472,584.00
$
2016
2,240,445,490.00
2015
2,206,556,290.00
Assessed Valuation
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2017
55,027,332.99
$
54,748,254.82
$
99.49%
2016
54,442,150.23
54,217,629.37
99.58%
2015
53,930,406.00
53,756,015.00
99.67%
Comparison of Tax Levies and Collections
30
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 3. Property Taxes (continued):
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2017
647,630.63
$
63,632.17
$
711,262.80
$
1.29%
2016
612,368.40
79,043.96
691,412.36
1.27%
2015
526,052.00
32,587.00
558,639.00
1.04%
Delinquent Taxes and Tax Title Liens
Year
Number
2017
135
2016
135
2015
135
Number of Tax Title Liens
The last tax sale was held on November 13, 2017.
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
2017
5,757,700.00
$
2016
5,757,700.00
2015
5,757,700.00
Note 5. Fund Balances Appropriated
The following schedule details the amount of fund balances available at the end of the current year and
four 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:
2017
4,796,809.20
$
2,850,000.00
$
59.41%
2016
4,595,680.34
2,850,000.00
62.01%
2015
5,248,736.00
2,950,000.00
56.20%
31
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 6. Disaggregated Receivable and Payable Balances
There are no significant components of receivable and payable balances reported in the financial
statements.
Note 7. Interfund Receivables, Payables and Transfers
The following interfund balances were recorded in the various statements of assets liabilities, reserves and
fund balances at December 31, 2017:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
105,043.89
$
428,842.63
$
State and Federal Grant Fund
229,846.77
444,528.14
Trust Other Fund
1,000,000.00
79,307.25
Payroll Fund
-
25,736.64
Capital Fund
643,524.00
1,000,000.00
1,978,414.66
$
1,978,414.66
$
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.
A summary of interfund transfers is as follows:
Transfers
Transfers
Fund
In
Out
Current Fund
292,738.60
$
145,229.83
$
State and Federal Grant Fund
477,528.14
292,638.44
Trust Other Fund
112,229.83
1,000,100.16
Capital Fund
1,033,000.00
477,528.14
1,915,496.57
$
1,915,496.57
$
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.
32
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 8. Fixed Assets
The following is a summary of changes in the General Fixed Assets Account Group for the year ended
December 31, 2017.
Balance
Balance
December 31,
December 31,
2016
Additions
Deletions
2017
Land and Improvements
7,789,600.00
$
-
$
-
$
7,789,600.00
$
Buildings
10,473,776.00
-
-
10,473,776.00
Machinery & Equipment
11,842,682.00
819,483.97
(784,194.00)
11,877,971.97
30,106,058.00
$
819,483.97
$
(784,194.00)
$
30,141,347.97
$
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.nj.gov/treasury/pensions/financial-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, except for medical benefits, which vest after
25 years of service or under the disability provisions of PERS.
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.
33
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by
employer (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
2017, 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, 2017, the Township’s contractually required contribution to PERS plan was $443,904.
Components of Net Pension Liability - At December 31, 2017, the Township’s proportionate share of
the PERS net pension liability was $11,154,416. The net pension liability was measured as of June 30,
2017. 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, 2016, which
was rolled forward to June 30, 2017. The Township’s proportion of the net pension liability was based on
the Township’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2017. The Township’s proportion measured as of June 30, 2017,
was 0.04792% which was a decrease of 0.00258% from its proportion measured as of June 30, 2016.
12/31/2017
12/30/2016
Actuarial valuation date (including roll forward)
June 30, 2017
June 30, 2016
Deferred Outflows of Resources
2,987,085
$
4,497,904
$
Deferred Inflows of Resources
2,698,454
-
Net Pension Liability
11,154,416
14,955,258
Township's portion of the Plan's total net pension Liabi
0.04792%
0.05050%
Collective Balances at December 31, 2017 and December 31, 2016
34
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2017, the
Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2017
measurement date is $804,548. This expense is not recognized by the Township because of the regulatory
basis of accounting as described in Note 1, but as previously mentioned the Township contributed
$443,904 to the plan in 2017.
At December 31, 2017, the Township 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
262,648
$
-
$
Changes of Assumptions
2,247,231
2,238,992
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
75,954
-
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
401,252
459,462
2,987,085
$
2,698,454
$
35
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
The Township will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
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
-
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
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
-
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
36
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
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
2018
351,378
$
2019
483,915
2020
267,781
2021
(522,540)
2022
(291,901)
288,633
$
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
2.25%
Salary Increases:
Through 2026
1.65% - 4.15% Based on Age
Thereafter
2.65% - 5.15% Based on Age
Investment Rate of Return
7.00%
Mortality Rate Table
RP-2000
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2011 - June 30, 2014
Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for
male and female active participants. For State employees, mortality tables are set back 4 years for males
and females. For local employees, mortality tables are set back 2 years for males and 7 years for females.
In addition, the tables provide for future improvements in mortality from the base year of 2013 using a
generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement
mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback
1 year for males and females) for service retirements and beneficiaries of former members and a one-year
static projection based on the mortality improvement Scale AA. In addition, the tables for service
retirements and beneficiaries of former members provide for future improvements in mortality from the
base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014
37
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000
Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2011 to June 30, 2014. 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, 2017) 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, 2017 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute Return/Risk Mitigation
5.00%
5.51%
Cash
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Markets Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
100.00%
38
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Discount Rate - The discount rate used to measure the total pension liability was 5.00% as of June 30,
2017. 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 3.58% as of June 30, 2017 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 made based on the contribution rate in the most recent fiscal
year. The State employer contributed 40% of the actuarially determined contributions and the local
employers contributed 100% of their actuarially determined contributions. 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 2040. Therefore, the long-term expected rate of return on plan
investments was applied to projected benefit payments through 2040 and the municipal bond rate was
applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Township’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (4.00%) or 1-percentage-point higher (6.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(4.00%)
(5.00%)
(6.00%)
Township's Proportionate Share
of the Net Pension Liability
13,837,811
$
11,154,416
$
8,918,817
$
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.nj.gov/treasury/pensions/financial-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
39
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
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.
Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by
employer (collectively, the Schedules) present amounts that are considered elements of the financial
statements of PFRS or its participating employers. Accordingly, they do not purport to be a complete
presentation of the financial position or changes in financial position of PFRS or the participating
employers. 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 2017, 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, 2017, the Township’s contractually required contributions to PFRS plan
was $1,162,371.
The employee contributions for PFRS are 10.00% of employees’ annual compensation, as defined.
Net Pension Liability and Pension Expense - At December 31, 2017 the Township’s proportionate
share of the PFRS net pension liability was $20,276,143. The net pension liability was measured as of
June 30, 2017. 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, 2016,
to the measurement date of June 30, 2017. The Township’s proportion of the net pension liability was
based on the Township’s actual contributions to the plan relative to the total of all participating
employers’ contributions for the year ended June 30, 2017. The Township’s proportion measured as of
June 30, 2017, was 0.13134%, which was an increase of 0.0067% from its proportion measured as of
June 30, 2016.
40
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
12/31/2017
12/31/2016
Actuarial valuation date (including roll forward)
June 30, 2017
June 30, 2016
Deferred Outflows of Resources
4,545,177
$
5,946,164
$
Deferred Inflows of Resources
3,696,307
484,407
Net Pension Liability
20,276,143
23,805,550
Township's portion of the Plan's total net pension Liabi
0.13134%
0.12462%
Collective Balances at December 31, 2017 and December 31, 2016
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2017, the
Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2017
measurement date was $1,838,905. This expense is not recognized by the Township because of the
regulatory basis of accounting as described in Note 1, but as previously mentioned the Township
contributed $1,162,371 to the plan in 2017.
At December 31, 2017, the Township 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
131,540
$
119,004
$
Changes of Assumptions
2,500,274
3,320,639
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
386,916
-
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
1,526,447
256,664
4,545,177
$
3,696,307
$
41
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
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
-
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
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
-
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
42
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
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
2018
632,272
$
2019
1,025,005
2020
179,654
2021
(686,234)
2022
(301,827)
848,870
$
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
Township is $2,271,099 as of December 31, 2017. The net pension liability was measured as of June 30,
2017. 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, 2016, to the
measurement date of June 30, 2017. The State’s proportion of the net pension liability associated with the
Township was based on a projection of the Township’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, 2017 was 0.13134%, which was an increase of 0.0067% from
its proportion measured as of June 30, 2016, which is the same proportion as the Township’s. At
December 31, 2017, the Township’s and the State of New Jersey’s proportionate share of the PFRS net
pension liability were as follows:
Township's Proportionate Share of Net Pension Liability
20,276,143
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Township
2,271,099
22,547,242
$
43
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
At December 31, 2017, the State’s proportionate share of the PFRS expense, associated with the
Township, calculated by the plan as of the June 30, 2017 measurement date was $277,807.
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
2.25%
Salary Increases:
Through 2026
2.10% - 8.98% Based on Age
Thereafter
3.10% - 9.98% Based on Age
Investment Rate of Return
7.00%
Mortality Rate Table
RP-2000
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2010 - June 30, 2013
Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for
male and female active participants. For State employees, mortality tables are set back 4 years for males
and females. For local employees, mortality tables are set back 2 years for males and 7 years for females.
In addition, the tables provide for future improvements in mortality from the base year of 2013 using a
generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement
mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback
1 year for males and females) for service retirements and beneficiaries of former members and a one-year
static projection based on the mortality improvement Scale AA. In addition, the tables for service
retirements and beneficiaries of former members provide for future improvements in mortality from the
base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014
projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000
Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2010 to June 30, 2013.
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, 2017) 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
44
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
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, 2017 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute Return/Risk Mitigation
5.00%
5.51%
Cash
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Markets Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.14% as of June 30,
2017. 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 3.58% as of June 30, 2017 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 made based on the contribution rate in the most recent fiscal
year. The State employer contributed 40% of the actuarially determined contributions and the local
employers contributed 100% of their actuarially determined contributions. 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 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.
45
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Township’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.14%) or 1-percentage-point higher (7.14%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.14%)
(6.14%)
(7.14%)
Township's Proportionate Share
of the Net Pension Liability
26,715,488
$
20,276,143
$
14,985,489
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Township
2,992,360
2,271,099
1,678,501
29,707,848
$
22,547,242
$
16,663,990
$
Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued
by the Township.
46
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt
The following schedule represents the Township’s summary of debt, as filed in the Township’s Annual
Debt Statement required by the Local Bond Law of New Jersey for the current and two previous years:
2017
2016
2015
Issued:
General:
Bonds, Notes and Loans
13,667,554.31
$
15,076,157.57
$
16,293,065.00
$
Total Debt Issued
13,667,554.31
15,076,157.57
16,293,065.00
Authorized but not issued:
General:
Bonds, Notes and Loans
8,271,629.00
6,651,879.00
3,331,629.00
Total Authorized But Not Issued
8,271,629.00
6,651,879.00
3,331,629.00
Total Gross Debt
21,939,183.31
$
21,728,036.57
$
19,624,694.00
$
Deductions:
General:
Funds on Hand For Payment of Bonds and Notes:
Reserve for Debt Service
-
-
484,913.00
Total Deductions
-
-
484,913.00
Total Net Debt
21,939,183.31
$
21,728,036.57
$
19,139,781.00
$
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
Local School Debt
21,000,000.00
$
21,000,000.00
$
-
$
Regional School Debt
43,740,801.25
43740801.25
-
General Debt
21,939,183.31
-
21,939,183.31
86,679,984.56
$
64,740,801.25
$
21,939,183.31
$
Net Debt $21,939,1813.31 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as
amended, $2,297,030,254.33, equals 0.955%. 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, 2017 is calculated as follows:
47
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt (continued):
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
80,396,058.90
$
Net Debt
21,939,183.31
Remaining Borrowing Power
58,456,875.59
$
General Debt
A. Serial Bonds Payable
On February 1, 2010, the Township issued $3,275,000 of General Obligation Refunding Bonds. The
General Obligation Refunding Bonds were issued at interest rates varying from 3.75% to 5.00% and
mature on August 1, 2021.
On May 2, 2012, the Township issued $5,260,000 of General Obligation Refunding Bonds. The General
Obligation Refunding Bonds were issued at interest rates varying from 2.00% to 4.00% and mature on
November 11, 2023.
On February 2, 2017, the Township issued $4,500,000 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates varying from 2.00% to 3.00% and mature on February 1,
2027.
Principal and interest due on the outstanding bonds is as follows:
Year
Principal
Interest
Total
2018
1,120,000.00 249,487.50 1,369,487.50
2019
1,170,000.00 210,437.50 1,380,437.50
2020
1,155,000.00 181,037.50 1,336,037.50
2021
1,095,000.00 148,250.00 1,243,250.00
2022
1,070,000.00 112,125.00 1,182,125.00
2023-2027 3,260,000.00 217,525.00 3,477,525.00
8,870,000.00
$
1,118,862.50
$
9,988,862.50
$
48
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt (continued):
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, 2017:
Balance
Date of
Date of
December 31,
Description
Issue
Maturity
Rate
2017
Series 2017 A
2/2/2017
2/2/2018
1.306%
3,025,000.00
$
Series 2017 B
2/2/2017
2/2/2018
1.306%
1,329,000.00
$
4,354,000.00
$
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.
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2017, the Township had $8,271,629.00 in various General Capital bonds and notes
authorized but not issued.
Note 11. Deferred School Taxes
School taxes have been raised and the liability deferred by statutes. The balance of unpaid local taxes
levied, amount deferred and the amount reported as a liability (payable) at December 31, are as follows:
Local Taxes
2017
2016
Total Balance of Local Tax
6,269,633.00
$
6,021,471.00
$
Deferred Taxes
5,236,297.00
5,236,297.00
Local Tax Payable
1,033,336.00
$
785,174.00
$
Balance, December 31,
49
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 12. Deferred Compensation Salary Account
The Township offers its employees a Deferred Compensation Plan in accordance with Internal Revenue
Code Section 457 which has been approved by the Director of the Division of Local Government
Services. The Plan, available to all full time employees at their option, permits employees to defer a
portion of their salary to future years. The deferred compensation is not available to participants until
termination, retirement, death or unforeseeable emergency. Amounts deferred under Section 457 plans
must be held in trust for the exclusive benefits of participating employees and not be accessible by the
Township or its creditors. Since the Township does not have a fiduciary relationship with the Plan, the
balances and activities of the Plan are not reported in the Township’s financial statements.
Note 13. Accrued Sick, Vacation and Compensation Time
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 Township’s liability related to unused
vacation, sick pay and compensation time. The Township 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 $2,003,389.44 at December 31,
2017.
The Township has established a Trust Fund in accordance with NJSA 40A:4-39 to set aside funds for
future payments of compensated absences. As of December 31, 2017, the Township has reserved in the
Other Trust Fund $46,294.81 to fund compensated absences in accordance with NJSA 40A:4-39.
Note 14. Contingencies
Grantor Agencies
The Township 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, 2017 the Township
estimates that no material liabilities will result from such audits.
Litigation
The Township is a defendant in several legal proceedings that are in various stages of litigation. It is
believed that the outcome, or exposure to the Township, from such litigation is either unknown or
potential losses, if any, would not be material to the financial statements.
50
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 14. Contingencies (continued):
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, 2017.
Note 15. Post-Retirement Health Benefits – GASB 45
The Township of Little Egg Harbor provides post-employment medical, prescription drug, dental, and
vision benefits to eligible retired employees and their spouses until Medicare age is attained by either the
retired employee or the spouse in the case of spousal coverage. The Township of Little Egg Harbor pays
100% of the insurance cost for the retiree.
The Township of Little Egg Harbor’s annual Other Post-Employment Benefit cost is calculated based on
the Annual Required Contribution. The actuarial cost method used to determine the Plan’s funding
requirements is the “Unit Credit” method. Under this method, an actuarial accrued liability is determined
as the present value of the earned benefits, which is allocated to service before the current plan year. The
Plan is currently unfunded. The unfunded actuarial liability is amortized over thirty years. The following
table shows the changes in the Township of Little Egg Harbor’s annual Other Post-Employment Benefit
cost for the year, the amount actually contributed to the Plan and changes in their net Other Post-
Employment Benefit obligation to the plan:
2017
2016
2015
Annual Required Contribution (ARC)
1,420,000
$
1,420,000
$
1,250,000
$
Interest on the Net OPEB Obligation
-
-
-
Adjustment to the ARC
-
-
-
Annual OPEB Cost
1,420,000
1,420,000
1,250,000
Contributions Made
(860,000)
(860,000)
(610,000)
Increase in Net OPEB Obligation
560,000
560,000
640,000
Net OPEB, Beginning of Year
8,890,000
8,330,000
7,690,000
Net OPEB, End of Year
9,450,000
$
8,890,000
$
8,330,000
$
Percentage of Annual OPEB Cost Contributed
60.6%
60.6%
48.8%
51
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 15. Post-Retirement Health Benefits – GASB 45 (continued):
The funded status of the plan as of June 30, 2016 was as follows:
Acuarial Accrued Liability (AAL)
15,770,000
$
Actuarial Value of Plan Assets
-
Unfunded Actuarial Accrued Liability
15,770,000
$
Funded Ration
0.0%
Covered Payroll
N/A
UAAL as a Percentage of Covered Payroll
N/A
Actuarial assumptions were used to value the post-retirement medical liabilities. Actuarial assumptions
were based on the actual experience of the covered group, to the extent that creditable experience data
was available, with an emphases on expected long-term future trends rather than giving undue weight to
recent past experience. The reasonableness of each actuarial assumption was considered independently
based on its own merits, its consistency with each other assumption, and the combined impact of all
assumptions.
Two economic assumptions used in the valuation are the discount rate and the health care cost trend rates.
The economic assumptions are used to account for changes in the cost of benefits over time and to
discount future benefit payments for the time value of money.
The investment return assumption (discount rate) should be the estimated long-term investment yield on
the investments that are expected to be used to finance the payments of benefits. The investments
expected to be used to finance the payments of benefits would be plan assets for funded plans, assets of
the employer for pay-as-you-go plans, or a proportionate combination of the two for plans that being
partially funded. We assumed a discount rate of 4.5 percent for purposes of developing the liabilities and
Annual Required Contribution on the basis that the Plan would not be funded. We based medical claims
cost for retirees on an annual average claims cost of approximately $22,700 per covered retiree for family
coverage and $10,500 for single coverage. The average claims cost was based on an equitable blending of
the Traditional and Direct Access benefit costs. We assumed health care costs would increase annually at
a rate of 9.5% the first year, decrease by 0.5% per year through year 10 to 5% thereafter.
The Township of Little Egg Harbor currently has twelve eligible retired employees receiving retirement
benefits. The net Other Post-Employment Benefit obligation to the Township of Little Egg Harbor to
provide benefits to the retiree for the year ended December 31, 2016, was $8,890,000.
52
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 16. Hurricane Sandy and FEMA Aid
On October 29th of 2012, Hurricane Sandy made landfall on the New Jersey coast and caused significant
damage to coastal towns including Little Egg Harbor Township. The extensive damage caused the
Township to issue a Special Emergency in their 2012 budget in the amount of $12 million in order to pay
for all storm related costs. In addition, the Township issued a $3 million special emergency note on
December 19, 2012 and an additional $9 million special emergency note on January 11, 2013 to provide
necessary cash flow related to storm costs. The total cost of the storm is estimated to be $6 million with
the anticipation of seventy-five percent to be reimbursed by the federal government through FEMA aid.
As of December 2017, $7.1 million in FEMA aid has been received by the Township. In addition, during
2013, $6 million of the $12 million special emergency was cancelled by the Township.
Note 17. Community Disaster Loan
On April 5, 2013, the Township submitted a formal request for a FEMA Community Disaster Loan
(CDL) in the amount of $4,319,506.00 in relation to Hurricane Sandy losses and expenditures. On March
28, 2013, the Township approved a resolution to amend the 2013 Budget by $1,750,000.00, the amount
of the CDL that was awarded in 2013. During 2014, an additional $1,500,000.00 was received. During
2015, an additional $1,000,000.00 was received.
The interest rate on the loan is the U.S. Treasury rate for 5-year maturities on the date the Promissory
Note is executed, in this case June 13, 2013 when the interest rate was 0.625%. The term of the loan is
usually 5 years, but may be extended. Interest accrues on the funds as they are disbursed. When
applicable, the Assistance Administrator of the Disaster Assistance Directorate may cancel repayment of
all or part of the loan if the revenues of the applicant in the three fiscal years following the financial year
of the disaster are insufficient to meet the operating budget because of disaster related revenue losses and
un-reimbursed disaster related operating expenses. As of December 31, 2017 the Current Fund has
recorded a loan payable in the amount of $4,250,000.00 with $98,463.18 of accrued interest. The loan
comes to maturity on May 1, 2018.
53
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54
SUPPLEMENTARY EXHIBITS
55
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56
CURRENT FUND
57
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58
EXHIBIT A-4
Balance December 31, 2016
9,329,755.70
$
501,833.69
$
Increased by Receipts:
Taxes Receivable
53,790,474.97
$
Tax Title Liens Receivable
111,237.11
Due From State - Senior Citizen &
Veteran Deductions
319,378.10
Revenue Accounts Receivable
3,313,694.08
Miscellaneous Revenue Not Anticipated
792,584.27
Prepaid Taxes
1,765,588.34
Tax Sale - Utility
359,182.31
Refunds of Current Year Appropriations
459,658.90
Due Bass River
3,717.60
Construction Fees Due State of
New Jersey
45,537.00
Reserve for Insurance Proceeds
2,419.00
Reserve for FEMA Proceeds
50,000.00
Transferred from General Capital Fund
100.16
477,528.14
$
Due from State & Federal Grant Fund
292,638.44
-
Federal & State Grants Receivable
1,209,910.26
Total Receipts
61,306,210.28
1,687,438.40
Subtotal
70,635,965.98
2,189,272.09
Decreased by Disbursements:
2017 Appropriations
19,656,097.77
Appropriation Reserves
958,231.96
County Taxes Payable
9,669,556.18
Due County for Added & Omitted Taxes
156,025.98
Local District School Tax
12,904,551.00
Regional High School Tax
14,829,580.00
Special District Taxes
1,674,051.00
Construction Fees Due State of NJ
51,490.00
Refund Tax Overpayments
102,628.35
Bass River Construction Fees
2,561.10
Reserve for Insurance Proceeds
29,581.00
Due to General Capital Fund
33,000.00
Transferred to Open Space
112,229.83
Prior Year Refunds
209,758.53
Due MUA
359,182.31
Due from Current Fund
292,638.44
Federal & State Grants - Appropriated
919,091.70
Total Disbursements
60,748,525.01
1,211,730.14
Balance December 31, 2017
9,887,440.97
$
977,541.95
$
CURRENT FUND
GRANT FUND
STATE & FEDERAL
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
59
EXHIBIT A-5
BALANCE
SENIOR
TRANSFERRED
BALANCE
DECEMBER 31,
2017
ADDED
CITIZENS &
OVERPAYMENT
OVERPAYMENT
TO TAX
DECEMBER 31,
YEAR
2016
LEVY
TAXES
2016
2017
VETERANS
APPLIED
CREATED
CANCELED
TITLE LIENS
2017
2009
1,625.85
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
1,625.85
$
2010
1,760.61
-
-
-
-
-
1,788.68
1,788.68
-
-
1,760.61
2011
1,802.76
-
-
-
250.00
(250.00)
2,132.08
11,841.71
9,709.63
-
1,802.76
2012
3,124.73
-
-
-
250.00
(250.00)
12,722.60
24,632.20
11,909.60
-
3,124.73
2013
4,458.05
-
-
-
250.00
(250.00)
23,876.67
41,032.84
17,156.17
-
4,458.05
2014
5,626.29
-
-
-
1,000.00
(1,000.00)
40,637.66
110,653.67
70,016.01
-
5,626.29
2015
7,889.47
-
-
-
3,095.27
(2,250.00)
94,875.86
107,681.42
12,805.53
-
7,044.23
2016
52,756.20
-
-
-
21,536.03
(8,667.81)
169,192.46
185,029.37
38,284.62
-
17,440.27
Total
79,043.96
-
-
-
26,381.30
(12,667.81)
345,226.01
482,659.89
159,881.56
-
42,882.79
2017
-
54,327,574.21
699,758.78
618,861.18
53,764,093.67
369,934.30
157,268.10
161,902.44
137,300.54
121,028.26
20,749.38
Total
79,043.96
$
54,327,574.21
$
699,758.78
$
618,861.18
$
53,790,474.97
$
357,266.49
$
502,494.11
$
644,562.33
$
297,182.10
$
121,028.26
$
63,632.17
$
Tax Yield:
General Property Tax
52,653,623.21
$
Special District
1,673,951.00
Added Taxes (54:4-63.1 et. seq.)
699,758.78
55,027,332.99
$
Total Tax Yield
55,027,332.99
$
Tax Levy:
Local School District Tax (Abstract)
13,152,713.00
$
Regional High School Tax (Abstract)
14,764,513.00
Municipal Open Space (Abstract)
22,874.73
Municipal Open Space (Added)
475.23
County Taxes:
County Tax (Abstract)
8,188,749.33
County Library Tax (Abstract)
882,122.95
County Health Services (Abstract)
319,645.79
County Open Space
279,038.11
Due County for Added Taxes (54:4-63,1 et.seq.)
128,995.70
Total County Taxes
9,798,551.88
Fire District #1 (Amount Certified)
593,266.00
Fire District #2 (Amount Certified)
647,685.00
Fire District #3 (Amount Certified)
433,000.00
Total Special District Taxes
1,673,951.00
Local Tax for Municipal Purposes
15,000,655.81
Add: Additional Tax Levied
613,598.34
15,614,254.15
Total Tax Levy
55,027,332.99
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
COLLECTED
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
ANALYSIS OF 2017 PROPERTY TAX LEVY:
60
EXHIBIT A-6
Balance December 31, 2016
612,368.40
$
Increased by:
Transfers from Taxes Receivable
121,028.26
$
Interest & Costs Accrued by Sale
25,471.08
146,499.34
Subtotal
758,867.74
Decreased by:
Collections
111,237.11
Balance December 31, 2017
647,630.63
$
EXHIBIT A-7
Balance December 31, 2017 and 2016
5,757,700
$
SCHEDULE OF PROPERTY ACQUIRED FOR TAXES
(AT ASSESSED VALUATION)
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF TAX TITLE LIENS
61
EXHIBIT A-8
BALANCE
BALANCE
DECEMBER 31,
ACCRUED IN
DECEMBER 31,
2016
2017
TREASURER
2017
Miscellaneous Revenue Anticipated:
Licenses - Alcoholic Beverages
-
$
10,376.00
$
10,376.00
$
-
$
Fees & Permits
-
93,915.55
93,915.55
-
Municipal Court
13,176.33
232,813.17
231,965.44
14,024.06
Interest & Costs on Taxes
-
101,943.18
101,943.18
-
Payments in Lieu of Taxes
-
68,316.48
68,316.48
-
Energy Receipts Tax
-
1,299,939.00
1,299,939.00
-
Garden State Trust
-
149,117.00
149,117.00
-
Uniform Construction Code Fees
-
754,201.00
754,201.00
-
Tower Rental
-
183,987.39
183,987.39
-
SRO Officer
-
327,474.10
327,474.10
-
Cable TV
-
92,458.94
92,458.94
-
Total
13,176.33
$
3,314,541.81
$
3,313,694.08
$
14,024.06
$
Cash Receipts
3,313,694.08
$
Total
3,313,694.08
$
TOWNSHIP OF LITTLE EGG HARBOR
FOR THE YEAR ENDED DECEMBER 31, 2017
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
CURRENT FUND
62
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2016
TRANSFERS
CHARGED
LAPSED
General Government:
Mayor and Committee
Salaries and Wages
720.35
$
720.35
$
720.35
$
-
$
Other Expenses
1,965.03
1,965.03
20.00
1,945.03
Municipal Clerk
Salaries and Wages
316.34
316.34
316.34
-
Other Expenses
12,585.90
12,585.90
11,068.39
1,517.51
Financial Administration (Treasury)
Other Expenses
24,997.74
24,997.74
4,717.90
20,279.84
Audit Services:
Other Expenses
26,692.75
26,692.75
19,100.00
7,592.75
Revenue Administration (Tax Collection)
Salaries and Wages
190.31
190.31
190.31
-
Other Expenses:
Tax Sale Costs
9,319.50
9,319.50
5,287.66
4,031.84
Miscellaneous Other Expenses
10,619.05
10,619.05
1,458.30
9,160.75
Tax Assessment Administration
Salaries and Wages
6,116.66
6,116.66
5,110.88
1,005.78
Other Expenses
5,150.45
5,150.45
285.25
4,865.20
Legal Services (Legal Department)
Other Expenses
17,151.90
17,151.90
17,151.90
-
Engineering Services
Other Expenses
74,179.92
74,179.92
11,386.00
62,793.92
Economic Development Agencies
Other Expenses
3,200.00
3,200.00
100.00
3,100.00
Land Use Administration:
Zoning Board of Adjustment
Other Expenses
3,363.29
3,363.29
747.77
2,615.52
Zoning Officer
Salaries and Wages
28,605.76
28,605.76
1,828.19
26,777.57
Other Expenses
4,301.41
4,301.41
90.00
4,211.41
Insurance:
Group Insurance for Employees
384,283.37
384,283.37
275,113.19
109,170.18
Public Safety Functions:
Police Department:
Salaries and Wages
339,112.72
339,112.72
151,615.21
187,497.51
Other Expenses
15,550.99
15,550.99
14,409.14
1,141.85
Police Dispatchers:
Salaries and Wages
54,198.36
54,198.36
10,310.84
43,887.52
Other Expenses
103.65
103.65
-
103.65
First Aid Squad Contribution
70,000.00
70,000.00
70,000.00
-
Municipal Prosecutor:
Other Expenses
13,750.00
13,750.00
3,750.00
10,000.00
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
2,872.67
2,872.67
2,872.67
-
Other Expenses
87,374.70
87,374.70
8,535.02
78,839.68
Solid Waste Sanitation
Salaries and Wages
13,901.05
13,901.05
13,901.05
-
Other Expenses
13,404.27
13,404.27
9,862.88
3,541.39
Solid Waste Recycling
Salaries and Wages
71,336.90
71,336.90
51,177.96
20,158.94
Other Expenses
10,255.32
10,255.32
5,740.10
4,515.22
Buildings & Grounds:
Salaries and Wages
58,594.44
58,594.44
13,314.26
45,280.18
Other Expenses
14,632.97
14,632.97
6,985.64
7,647.33
Vehicle Maintenance
Other Expenses
29,214.62
29,214.62
12,824.96
16,389.66
Municipal Services Act
Other Expenses
22,224.41
22,224.41
18,442.92
3,781.49
Health & Human Services:
Public Health Services (Board of Health)
Other Expenses
8,400.00
8,400.00
425.00
7,975.00
Animal Control Services
Other Expenses
14,015.00
14,015.00
1,223.00
12,792.00
Park & Recreation Functions:
Recreation Services & Programs
Salaries and Wages
32,038.25
32,038.25
4,652.86
27,385.39
Other Expenses
26,238.44
26,238.44
1,145.88
25,092.56
Utility Expenses & Bulk Purchases:
Electricty
13,099.56
13,099.56
13,099.56
-
Street Lighting
20,953.21
20,953.21
20,953.21
-
Telephone
40,036.95
40,036.95
26,709.95
13,327.00
Gasoline
121,256.61
121,256.61
24,229.49
97,027.12
Natural Gas
10,201.18
10,201.18
9,093.74
1,107.44
Landfill/Solid Waste Disposal Costs:
Sanitary Landfill
41,882.98
41,882.98
3,699.43
38,183.55
Uniform Construction Code Enforcement Functions:
Construction Code Official
Salaries and Wages
64,334.22
64,334.22
8,541.21
55,793.01
Other Expenses
6,507.75
6,507.75
739.98
5,767.77
Municipal Court:
Salaries and Wages
63,583.85
63,583.85
7,783.50
55,800.35
Other Expenses
8,280.24
8,280.24
4,019.27
4,260.97
Public Defender:
Other Expenses
7,712.50
7,712.50
3,325.00
4,387.50
Other Common Operating Functions (Unclassified):
Schedule "C":
Other Expenses
135,936.84
135,936.84
57,496.37
78,440.47
Reserve for Disputed Contracts
13,300.00
13,300.00
9,904.35
3,395.65
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Social Security System (O.A.S.I.)
15,167.71
15,167.71
13,523.00
1,644.71
All Others
419,185.20
419,185.20
-
419,185.20
Total
2,492,417.29
$
2,492,417.29
$
958,999.88
$
1,533,417.41
$
2016 Appropriation Reserves
2,391,002.56
$
Accounts Payable
767.92
$
2016 Encumbrances
101,414.73
Cash Disbursements
958,231.96
Total
2,492,417.29
$
958,999.88
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2016 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2017
63
EXHIBIT A-10
Balance December 31, 2016:
School Tax Deferred
5,236,297.00
$
School Tax Payable
785,174.00
6,021,471.00
Increased by Levy:
School Year July 1, 2017 - June 30, 2018
13,152,713.00
Subtotal
19,174,184.00
Decreased by:
Payments
12,904,551.00
Subtotal
6,269,633.00
Balance December 31, 2017:
School Tax Deferred
5,236,297.00
School Tax Payable
1,033,336.00
Balance December 31, 2017
6,269,633.00
$
2017 Payments
12,904,551.00
$
Less School Taxes Payable at December 31, 2016
785,174.00
Plus School Taxes Payable at December 31, 2017
1,033,336.00
Amount Charged to 2016 Operations
13,152,713.00
$
EXHIBIT A-11
Balance December 31, 2016
250,490.00
$
Increased by:
Levy - July 1, 2017 to June 30, 2018
14,764,513.00
Subtotal
15,015,003.00
Decreased by:
Payments
14,829,580.00
Balance December 31, 2017
185,423.00
$
SCHEDULE OF REGIONAL HIGH SCHOOL TAX PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT TAX
FOR THE YEAR ENDED DECEMBER 31, 2017
ANALYSIS OF AMOUNT CHARGED TO OPERATIONS
64
EXHIBIT A-13
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2016
INCREASED
DECREASED
2017
Reserve for Sandy Insurance Proceeds
32,000.00
$
-
$
29,581.00
$
2,419.00
$
Reserve for Closed Escrow Accounts
54,291.00
-
-
54,291.00
Reserve for Reassessment
100,047.00
-
-
100,047.00
186,338.00
$
-
$
29,581.00
$
156,757.00
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF VARIOUS RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2017
65
EXHIBIT A-14
BALANCE
TRANSFERRED
BALANCE
DECEMBER 31,
ANTICIPATED
FROM
DECEMBER 31,
GRANT
2016
REVENUE
RECEIVED
UNAPPROPRIATED
ADJUSTMENT
2017
NJOEM Grant
20.95
$
6,182.40
$
-
$
-
$
-
$
6,203.35
$
Safe & Secure Communities Program
10,000.00
60,000.00
45,000.00
-
-
25,000.00
CDBG - 2015
19,226.71
-
-
-
-
19,226.71
966 Reimbursement Grant
44,025.87
-
28,832.45
-
-
15,193.42
Recycling Tonnage Grant
-
31,060.86
31,060.86
-
-
-
Neighborhood Communitiy Revitalization Grant
391,653.76
-
389,189.54
-
-
2,464.22
Child Restraint Grant
2,500.00
-
-
-
-
2,500.00
Municipal Aid Road Program - Oak Lane
288,267.00
-
158,850.00
-
(129,417.00)
-
Municipal Aid Road Program - Otis Bog Road
325,000.00
-
228,225.00
-
(96,775.00)
-
National Fish & Wildlife
1,599,632.00
2,540.00
197,717.67
-
-
1,404,454.33
Alcohol Education and Rehabilitation Program
-
846.34
64.34
-
-
782.00
Recycling Revenue and Residue
-
21,676.40
21,676.40
-
-
-
Ocean County Recycling Revenue Share
10,053.55
9,849.02
9,849.02
-
-
10,053.55
Bulletproof Vest Partnership Grant
6,207.81
-
-
-
-
6,207.81
Clean Communities Program
-
53,425.51
53,425.51
-
-
-
Post Sandy Planning Assistance
135,925.75
-
42,071.57
-
-
93,854.18
Policy and Planning CZM
-
153.75
153.75
-
-
-
NJDEP Living Shore Grant
-
400,000.00
-
-
-
400,000.00
Body Armor Grant
-
3,794.15
3,794.15
-
-
-
Total
2,832,513.40
$
589,528.43
$
1,209,910.26
$
-
$
(226,192.00)
$
1,985,939.57
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE
66
EXHIBIT A-15
BALANCE
BALANCE
DECEMBER 31,
2017 BUDGET
ENCUMBRANCES
DECEMBER 31,
APPROPRIATION
2016
APPROPRIATION
RECLASSIFIED
EXPENDED
ADJUSTED
2017
State:
Safe and Secure Communities - 2016
60,000.00
$
-
$
-
$
-
$
-
$
60,000.00
$
Safe and Secure Communities - 2017
-
60,000.00
-
-
-
60,000.00
Body Armor Replacement Fund
3,948.69
3,794.15
-
3,948.54
-
3,794.30
Alcohol Education & Rehabilitation
7,240.52
846.34
-
6,454.91
-
1,631.95
Safe and Secure Communities
45,000.00
-
-
-
-
45,000.00
Bulletproof Vest Program
8,800.00
-
-
8,800.00
-
-
NJOEM Grant
20.95
6,182.40
-
6,182.40
-
20.95
Drunk Driving Enforcement Fund
3,000.00
-
-
(102.91)
-
3,102.91
Clean Communities Program - Prior
63,973.66
-
-
47,087.88
-
16,885.78
Clean Communities Program - 2017
-
53,425.51
-
-
53,425.51
Safe and Secure Communities - 2015
60,000.00
-
-
-
-
60,000.00
NJDOT Municipal Aid Program - 2014
188,119.25
-
-
-
-
188,119.25
Recycling Tonnage Grant - Prior
18,326.58
-
-
8,000.00
-
10,326.58
Recycling Tonnage Grant - 2017
-
31,060.86
-
-
31,060.86
Recycling Revenue and Residue
3,701.16
21,676.40
-
-
-
25,377.56
Municipal Road Program - Otis Bog Road
325,000.00
-
-
85,337.29
(239,662.71)
0.00
Child Restraint Grant
2,500.00
-
-
-
-
2,500.00
Safe and Secure Communities
120,000.00
-
-
-
-
120,000.00
Municipal Road Program - Oak Lane
277,515.75
-
-
56,305.09
(221,210.66)
-
966 Reimbursement
44,049.87
-
-
28,832.50
-
15,217.37
Coastal Zone Management
-
153.75
-
-
-
153.75
Municipal Access Plan
15,000.00
-
-
-
-
15,000.00
Refuge Revenue Sharing Act
2,240.00
-
-
-
-
2,240.00
Post Sandy Planning Assistance
64,004.19
-
-
-
-
64,004.19
Total State
1,312,440.62
177,139.41
-
250,845.70
(460,873.37)
777,860.96
Federal:
National Fish & Wildlife
1,656,141.86
2,540.00
30,673.16
249,729.46
-
1,439,625.56
CDBG 2015
32,929.00
-
71.00
2,506.58
-
30,493.42
NJDEP Living Shoreline
-
400,000.00
-
-
400,000.00
National Wildlife Refuge
2,130.00
-
-
2,000.00
-
130.00
CDBG 2014
31,062.15
-
-
-
-
31,062.15
NJ EDA - Neighborhood Communitiy Revitalization Grant
364,840.63
-
9,447.35
374,287.98
-
0.00
Total Federal
2,087,103.64
402,540.00
40,191.51
628,524.02
-
1,901,311.13
Local:
Recycling Tonnage Grant - County
13,496.76
-
-
-
-
13,496.76
Recycling Tonnage Grant - 2015
29,723.22
-
3,926.76
33,649.98
-
-
Ocean County Recycling Revenue and Residue
9,371.49
-
-
-
-
9,371.49
Ocean County Recycling Revenue Sharing - 2015
9,707.08
-
-
4,324.66
-
5,382.42
Ocean County Recycling Revenue Sharing - 2017
-
9,849.02
-
-
-
9,849.02
Ocean County Recycling Revenue Sharing
9,614.55
-
9,674.74
9,674.74
-
9,614.55
Total Local
71,913.10
9,849.02
13,601.50
47,649.38
-
47,714.24
Total
3,471,457.36
$
589,528.43
$
53,793.01
$
927,019.10
$
(460,873.37)
$
2,726,886.33
$
Cash Disbursements
919,091.70
$
Encumbrances
7,927.40
Total
927,019.10
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS - APPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2017
67
EXHIBIT A-16
TRANSFERRED
BALANCE
TO 2017
BALANCE
DECEMBER 31,
GRANT
DECEMBER 31,
GRANT
2016
APPROPRIATED
RECEIVED
2017
State Grants:
Recycling Revenue - Ocean County
10,054.00
$
-
$
-
$
10,054.00
$
Department of Justice Grant
1,488.00
-
-
1,488.00
Coastal Zone Management
2,444.42
-
-
2,444.42
Total Grants
13,986.42
$
-
$
-
$
13,986.42
$
SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
FEDERAL AND STATE GRANT FUND
68
TRUST FUND
69
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70
EXHIBIT B-1
Balance December 31, 2016
3,906,618.01
$
54,096.41
$
Increased by Receipts:
Escrow Fees
598,576.90
$
-
$
Open Space
2,448.72
-
Forfeited Funds
10,358.89
-
COAH Fees
144,614.21
-
Sick/Vacation Funds
187,020.40
-
Federal Forfeiture
9.32
-
Police Community Activities
100.00
Interfunds Received
112,229.83
1,055,358.27
Subtotal
4,961,976.28
54,096.41
Decreased by Disbursements:
Escrow Fees
575,895.49
-
Planning Board
23,788.82
-
Open Space
400.00
-
COAH Fees
97,321.99
-
Sick/Vacation Funds
162,781.47
-
Federal Forfeiture
1,262.50
-
Forfeited Funds
5,034.20
-
Interfunds Disbursed
1,000,100.16
1,866,584.63
Balance December 31, 2017
3,095,391.65
$
54,096.41
$
EXHIBIT B-2
Balance December 31, 2016
2,297,094.93
$
Increased by Receipts:
Deposits for Redemption of Tax Sale Certificates
3,870,842.00
Subtotal
6,167,936.93
Decreased by Disbursements:
Refunds - Tax Sale Certificates Redeemed
4,460,967.00
Balance December 31, 2017
1,706,969.93
$
SCHEDULE OF CASH - COLLECTOR - TAX TITLE LIEN REDEMPTION
FOR THE YEAR ENDED DECEMBER 31, 2017
TRUST OTHER
TRUST ASSESSMENT
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
71
EXHIBIT B-3
Balance December 31, 2016
-
$
Increased by Receipts:
Dog License Fees
7,683.00
State Dog License Fees
1,629.00
9,312.00
Subtotal
9,312.00
Decreased by Disbursements:
Disbursements to State of New Jersey
1,629.00
Disbursements for Dog License Expenses
7,683.00
9,312.00
Balance December 31, 2017
-
$
EXHIBIT B-4
YEAR
AMOUNT
2016
8,645.40
2015
7,797.00
Total
16,442.40
$
EXHIBIT B-5
Balance December 31, 2016
2,297,094.93
$
Increased by Receipts:
Deposits Received - Collector
3,870,842.00
Subtotal
6,167,936.93
Decreased by Disbursements:
Refunds - Tax Sale Certificates
4,460,967.00
Balance December 31, 2017
1,706,969.93
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - DOG WARDEN
FOR THE YEAR ENDED DECEMBER 31, 2017
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF DEPOSITS FOR REDEMPTION OF TAX SALE CERTIFICATES
SCHEDULE OF RESERVE FOR DOG FUND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2017
LICENSE FEES COLLECTED
72
EXHIBIT B-6
Balance December 31, 2016
1,328,428.45
$
Increased by:
Escrow Deposits Received
598,576.90
Subtotal
1,927,005.35
Decreased by:
Disbursements
575,895.49
Balance December 31, 2017
1,351,109.86
$
EXHIBIT B-7
Balance December 31, 2016
23,474.19
$
Increased by:
Cash Receipts
10,358.89
Subtotal
33,833.08
Decreased by:
Disbursements
5,034.20
Balance December 31, 2017
28,798.88
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR FORFEITED PROPERTY
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF RESERVE FOR ESCROW DEPOSITS
FOR THE YEAR ENDED DECEMBER 31, 2017
73
EXHIBIT B-8
Balance December 31, 2016
103,800.76
$
Decreased by:
Escrow Fees
23,788.82
Balance December 31, 2017
80,011.94
$
EXHIBIT B-9
Balance December 31, 2016 and 2017
2,057.00
$
SCHEDULE OF RESERVE FOR RECREATION
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR PLANNING BOARD
FOR THE YEAR ENDED DECEMBER 31, 2017
74
EXHIBIT B-10
Balance December 31, 2016
2,214,290.58
$
Increased by:
Tax Levy - Due from Current Fund
23,349.96
$
Cash Receipts
2,448.72
25,798.68
Subtotal
2,240,089.26
Decreased by:
Disbursements
400.00
Balance December 31, 2017
2,239,689.26
$
EXHIBIT B-11
Balance December 31, 2016 and 2017
3,582.88
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR COMMUNITY CENTER
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF RESERVE FOR OPEN SPACE
FOR THE YEAR ENDED DECEMBER 31, 2017
75
EXHIBIT B-12
Balance December 31, 2016
7,106.23
$
Increased by:
Receipts
9.32
Subtotal
7,115.55
Decreased by:
Disbursements
1,262.50
Balance December 31, 2017
5,853.05
$
EXHIBIT B-13
Balance December 31, 2016
22,055.88
$
Increased by:
Receipts
187,020.40
Subtotal
209,076.28
Decreased by:
Disbursements
162,781.47
Balance December 31, 2017
46,294.81
$
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF RESERVE FOR FEDERAL FORFEITURE LAW ENFORCEMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR SICK AND VACATION TIME TRUST FUND
76
EXHIBIT B-14
Balance December 31, 2016
213,308.50
$
Increased by:
Receipts
144,614.21
Subtotal
357,922.71
Decreased by:
Disbursements
97,321.99
Balance December 31, 2017
260,600.72
$
EXHIBIT B-15
Balance December 31, 2016
1,000.00
$
Increased by:
Receipts
100.00
Balance December 31, 2017
1,100.00
$
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR COAH TRUST FUND
SCHEDULE OF RESERVE FOR POLICE COMMUNITY ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2017
77
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78
GENERAL CAPITAL FUND
79
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80
EXHIBIT C-1
Balance December 31, 2016
7,042.07
$
Increased by:
Premium on Sale of Notes
66,735.85
Balance December 31, 2017
73,777.92
$
EXHIBIT C-2
Balance December 31, 2016
1,562,008.97
$
Increased by Receipts:
Received from Open Space Fund
1,000,000.00
$
Received from Grant Fund
33,000.00
1,033,000.00
Subtotal
2,595,008.97
Decreased by Disbursements:
Improvement Authorizations
1,926,612.98
$
Transferred to Grant Fund
477,528.14
2,404,141.12
Balance December 31, 2017
190,867.85
$
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF FUND BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2017
81
EXHIBIT C-3
(Page 1 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
2016
NOTES/BONDS
MISCELLANEOUS
AUTHORIZATIONS
MISCELLANEOUS
FROM
TO
2017
Fund Balance
7,042.07
$
-
$
-
$
-
$
-
$
-
$
66,735.85
$
73,777.92
$
Due Grant Fund
-
-
33,000.00
-
477,528.14
-
-
(444,528.14)
Capital Improvement Fund
17,644.00
-
-
-
-
85,250.00
100,000.00
32,394.00
Due Current Fund
(32,260.01)
-
-
-
-
166,735.85
-
(198,995.86)
Due Open Space Trust Fund
-
-
1,000,000.00
-
-
-
-
1,000,000.00
Due to County - CDBG
3,722.00
-
-
-
-
-
-
3,722.00
IMPROVEMENT AUTHORIZATIONS:
ORDINANCE
NUMBER
96-10
Satellite Repeaters & Logging
Recorders
(250.00)
-
-
-
-
-
-
(250.00)
99-23
Municipal Complex
(2,230.00)
-
-
-
-
-
-
(2,230.00)
00-05
Sewer Line Extension - Atlantis
(4,571.00)
-
-
-
-
-
-
(4,571.00)
00-06
Water Line Extension - Atlantis
5,561.74
-
-
-
-
-
-
5,561.74
02-22
Purchase of Street Sweeper
(80.00)
-
-
-
-
-
-
(80.00)
02-23
Acquisition of Land - Parker
Run
18,566.64
-
-
-
-
-
-
18,566.64
02-41
Construction of Municipal
Complex
4,593.86
-
-
-
-
-
-
4,593.86
03-06
Acquisition of Trash Trucks
& Cans
16.06
-
-
-
-
-
-
16.06
Subtotal
17,755.36
-
1,033,000.00
-
477,528.14
251,985.85
166,735.85
487,977.22
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2017
DISBURSEMENTS
TRANSFERS
82
EXHIBIT C-3
(Page 2 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
ORDINANCE
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
NUMBER
2016
NOTES/BONDS
MISCELLANEOUS
AUTHORIZATIONS
MISCELLANEOUS
FROM
TO
2017
04-04
Acquisition of Trash Trucks
2,465.67
-
-
-
-
-
-
2,465.67
04-15
Acquisition of Fuel Depot
2,265.45
-
-
-
-
-
-
2,265.45
05-05
Bulkhead Construction at
Parkertown Dock
13,837.33
-
-
-
-
-
-
13,837.33
05-16
Acquisition of a Tractor
924.60
-
-
-
-
-
-
924.60
05-22
Construction of Recreation Trail
1,221.48
-
-
-
-
-
-
1,221.48
06-07
Various Road Improvements
243,048.00
-
-
-
-
-
-
243,048.00
06-15
Construction of Softball Field &
Tot Lot
131.10
-
-
-
-
-
-
131.10
07-04
Construction of North Burgee Drive
32,446.08
-
-
-
-
-
-
32,446.08
07-10
Acquisition of Garbage Truck
28,000.00
-
-
12,502.00
-
-
-
15,498.00
07-25
Acquisition of Land
67,500.00
-
-
-
-
-
-
67,500.00
08-03
Acquisition & Installation of Automatic
Doors
14,890.26
-
-
-
-
-
-
14,890.26
08-04
Improvements to Lexington Drive
161,439.07
-
-
-
-
-
-
161,439.07
09-05
Improvements to Forest Edge Drive
92,617.32
-
-
-
-
-
-
92,617.32
09-06
Improvements to Frog Pond Road
59,026.54
-
-
-
-
-
-
59,026.54
09-13
Various Capital Improvements
322,878.61
-
-
-
-
-
-
322,878.61
11-15
Various Capital Improvements
168,363.93
-
-
-
-
-
-
168,363.93
12-12
Various Capital Improvements
126,728.67
-
-
-
-
-
-
126,728.67
13-14
Various Capital Improvements
423,950.06
-
-
-
-
-
-
423,950.06
14-10
Various Capital Improvements
(377,910.56)
-
-
291,391.10
-
-
-
(669,301.66)
16-05
Various Capital Improvements
160,430.00
-
-
992,807.80
-
-
-
(832,377.80)
17-08
Various Capital Improvements
-
-
-
629,912.08
-
-
85,250.00
(544,662.08)
Subtotal
1,544,253.61
-
-
1,926,612.98
-
-
85,250.00
(297,109.37)
Total Analysis of Cash
1,562,008.97
$
-
$
1,033,000.00
$
1,926,612.98
$
477,528.14
$
251,986.00
$
251,986.00
$
190,867.85
$
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2017
DISBURSEMENTS
TRANSFERS
TOWNSHIP OF LITTLE EGG HARBOR
83
EXHIBIT C-4
Balance December 31, 2016
5,721,712.57
$
Increased by:
2017 Bonds Issued
4,500,000.00
Subtotal
10,221,712.57
Decreased by:
2017 Budget Appropriation to Pay General Serial Bonds
840,000.00
$
Green Trust Loan Bonds
68,158.26
908,158.26
Balance December 31, 2017
9,313,554.31
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
FOR THE YEAR ENDED DECEMBER 31, 2017
84
EXHIBIT C-5
BALANCE
BALANCE
UNEXPENDED
BOND
ORDINANCE
DECEMBER 31,
2017
BAN'S
BONDS
DECEMBER 31,
IMPROVEMENT
EXCESS
ANTICIPATION
NUMBER
IMPROVEMENT DESCRIPTION
2016
AUTHORIZATIONS
PAID
ISSUED
2017
AUTHORIZATION
EXPENDED
FINANCING
NOTES
96-10/99-09
Satellite Repeaters & Logging Recorders
250.00
$
-
$
-
$
-
$
250.00
$
-
$
250.00
$
-
$
-
$
99-23
Municipal Complex
2,230.00
-
-
-
2,230.00
-
2,230.00
-
-
00-05
Sewer Line Extension - Atlantis
4,571.00
-
-
-
4,571.00
-
4,571.00
-
-
02-08
Improvements to Cherrywood Drive
30,666.00
-
1,614.00
-
29,052.00
-
-
-
29,052.00
02-14,36
Construction of Recreation Facilities
40,730.00
-
1,405.00
-
39,325.00
-
-
-
39,325.00
02-22
Purchase of Street Sweeper
80.00
-
-
-
80.00
-
80.00
-
-
02-23
Acquisition of Land - Parker Run
46,550.00
-
590.00
-
45,960.00
-
-
-
45,960.00
03-07
Acquisition of Sport Utility Vehicles
730.00
-
81.00
-
649.00
-
-
-
649.00
05-19
Road Improvements - Various
117,500.00
-
6,185.00
-
111,315.00
-
-
-
111,315.00
06-07
Various Road Improvements
576,797.00
-
-
576,797.00
-
-
-
-
-
06-15
Construction of Softball Field & Tot Lot
225,853.00
-
-
225,853.00
-
-
-
-
-
07-04
Construction of North Burgee Drive
170,000.00
-
8,948.00
-
161,052.00
-
-
-
161,052.00
07-10
Acquisition of Garbage Truck
171,000.00
-
19,000.00
-
152,000.00
-
-
-
152,000.00
07-25
Acquisition of Land
1,282,500.00
-
-
-
1,282,500.00
1,282,500.00
-
-
-
08-03
Acquisition & Installation of Automatic Doors
24,130.00
-
833.00
-
23,297.00
-
-
-
23,297.00
08-04
Improvements to Lexington Drive
395,675.00
-
20,825.00
-
374,850.00
-
-
-
374,850.00
09-05
Improvements to Forest Edge Drive
204,250.00
-
10,750.00
-
193,500.00
-
-
-
193,500.00
09-06
Improvements to Frog Pond Road
409,458.00
-
11,000.00
-
398,458.00
59,026.54
141,431.46
-
198,000.00
09-13
Various Capital Improvements
1,007,530.00
-
-
1,037,490.00
(29,960.00)
-
-
(29,960.00)
-
10-20
Various Capital Improvements
1,115,200.00
-
-
1,115,200.00
-
-
-
-
-
11-15
Various Capital Improvements
1,406,222.00
-
306,051.00
-
1,100,171.00
-
-
-
1,100,171.00
12-12
Various Capital Improvements
1,540,292.00
-
-
1,540,292.00
-
-
-
-
-
13-14
Various Capital Improvements
2,042,360.00
-
113,163.00
4,368.00
1,924,829.00
-
-
-
1,924,829.00
14-10
Various Capital Improvements
1,871,500.00
-
-
1,871,500.00
1,202,198.34
669,301.66
-
-
16-05
Various Capital Improvements
3,320,250.00
-
-
3,320,250.00
2,487,872.20
832,377.80
-
-
17-08
Various Capital Improvements
-
1,619,750.00
-
1,619,750.00
760,699.72
859,050.28
-
-
Total
16,006,324.00
$
1,619,750.00
$
500,445.00
$
4,500,000.00
$
12,625,629.00
$
5,792,296.80
$
2,509,292.20
$
(29,960.00)
$
4,354,000.00
$
Improvement Authorizations Unfunded
6,720,068.16
$
Less - Unexpended Proceeds of Bond Anticipation
Notes Issued:
Ordinance 2002-23
18,566.64
Ordinance 2007-04
32,446.08
Ordinance 2007-10
15,498.00
Ordinance 2008-03
14,890.26
Ordinance 2008-04
161,439.07
Ordinance 2009-05
92,617.32
Ordinance 2011-15
168,363.93
Ordinance 2013-14
423,950.06
5,792,296.80
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
FOR THE YEAR ENDED DECEMBER 31, 2017
BALANCE DECEMBER 31, 2017
ANALYSIS OF
85
EXHIBIT C-6
Balance December 31, 2016
17,644.00
$
Increased By:
Transfer from Current Fund Budget
100,000.00
Subtotal
117,644.00
Decreased By:
Appropriated to Finance Improvement Authorizations
85,250.00
Balance December 31, 2017
32,394.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
86
EXHIBIT C-7
RECLASSIFICATION
CURRENT YEAR
ORDINANCE
2017
PRIOR YEAR
ENCUMBRANCES
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
PAYABLES
EXPENDED
PAYABLE
FUNDED
UNFUNDED
00-06
Water Line Extension - Atlantis
5/11/00
177,800.00
$
5,561.74
$
-
$
-
$
-
$
-
$
5,561.74
$
02-23
Acquisition of Land - Parker Run
5/23/02
49,000.00
-
18,566.64
-
-
-
-
-
18,566.64
02-41
Construction of Municipal Complex
11/25/02
6,550,000.00
4,593.86
-
-
-
-
-
4,593.86
-
03-06
Acquisition of Trash Trucks & Cans
4/10/03
800,000.00
16.06
-
-
-
-
16.06
-
04-04
Acquisition of Trash Trucks
2,465.67
-
-
-
-
-
2,465.67
-
04-15
Acquisition of Fuel Depot
2,265.45
-
-
-
-
-
2,265.45
-
05-05
Bulkhead Construction at Parkertown Dock
2/24/05
225,150.00
13,837.33
-
-
-
-
-
13,837.33
-
05-16
Acquisition of a Tractor
6/23/05
56,000.00
924.60
-
-
-
-
-
924.60
-
05-22
Construction of Recreation Trail
9/22/05
60,000.00
1,221.48
-
-
-
-
-
1,221.48
-
06-07
Various Road Improvements
6/22/06
1,170,000.00
-
243,048.00
-
-
-
-
243,048.00
-
06-15
Construction of Softball Field & Tot Lot
8/10/06
470,000.00
-
131.10
-
-
-
-
131.10
-
07-04
Construction of North Burgee Drive
3/08/07
325,000.00
-
32,446.08
-
-
-
-
-
32,446.08
07-10
Acquisition of Garbage Truck
6/14/07
180,000.00
-
15,498.00
-
12,502.00
12,502.00
-
15,498.00
07-25
Acquisition of Land
12/13/07
1,350,000.00
67,500.00
1,282,500.00
-
-
-
-
67,500.00
1,282,500.00
08-03
Acquisition & Installation of Automatic Doors
3/13/08
60,400.00
-
14,890.26
-
-
-
-
-
14,890.26
08-04
Improvements to Lexington Drive
3/13/08
566,500.00
-
161,439.07
-
-
-
-
-
161,439.07
09-05
Improvements to Forest Edge Drive
4/9/09
440,000.00
-
92,617.32
-
-
-
-
-
92,617.32
09-06
Improvements for Frog Pond Road
4/9/09
520,000.00
-
59,026.54
-
-
-
-
-
59,026.54
09-13
Various Capital Improvements
12/10/09
1,730,000.00
-
493,376.61
-
-
-
-
493,376.61
-
11-15
Various Capital Improvements
12/22/11
1,820,000.00
-
168,363.93
-
-
-
-
-
168,363.93
12-12
Various Capital Improvements
12/13/12
1,700,000.00
-
126,728.67
-
-
-
-
126,728.67
-
13-14
Various Capital Improvements
9/12/13
2,149,850.00
-
423,950.06
-
-
-
-
-
423,950.06
14-10
Various Capital Improvements
7/10/14
1,970,000.00
-
1,485,886.44
-
7,703.00
291,391.10
-
-
1,202,198.34
16-05
Various Capital Improvements
9/08/16
3,495,000.00
-
3,080,000.07
-
400,679.93
992,807.80
-
-
2,487,872.20
17-08
Various Capital Improvements
7/13/17
1,705,000.00
-
-
1,705,000.00
-
629,912.08
314,388.20
-
760,699.72
Total
98,386.19
$
7,698,468.79
$
1,705,000.00
$
420,884.93
$
1,926,612.98
$
314,388.20
$
961,670.57
$
6,720,068.16
$
ORDINANCE
DECEMBER 31, 2016
DECEMBER 31, 2017
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2017
BALANCE
BALANCE
87
EXHIBIT C-8
AMOUNT
DATE OF
OF
DATE
BALANCE
BALANCE
ORDINANCE
ORIGINAL ORIGINAL
OF
DATE OF
INTEREST DECEMBER 31,
DECEMBER 31,
NUMBER
ISSUE
ISSUE
ISSUE
MATURITY
RATE
2016
INCREASED
DECREASED
2017
02-08
Improvements to Cherrywood Drive
2/04/14
30,666
$
2/02/16
2/02/17
1.190%
30,666.00
$
-
$
30,666.00
$
-
$
2/02/17
2/02/18
1.306%
-
29,052.00
-
29,052.00
02-14/36
Construction of Recreation Facilities
2/04/14
40,730
2/02/16
2/02/17
1.190%
40,730.00
-
40,730.00
-
2/02/17
2/02/18
1.306%
-
39,325.00
-
39,325.00
02-23
Acquisition of Land - Parker Run
2/04/14
46,550
2/02/16
2/02/17
1.190%
46,550.00
-
46,550.00
-
2/02/17
2/02/18
1.306%
-
45,960.00
-
45,960.00
03-07
Acquisition of Sport Utility Vehciles
2/04/14
730
2/02/16
2/02/17
1.190%
730.00
-
730.00
-
2/02/17
2/02/18
1.306%
-
649.00
-
649.00
05-19
Road Improvements - Various
2/04/14
117,500
2/02/16
2/02/17
1.190%
117,500.00
-
117,500.00
-
2/02/17
2/02/18
1.306%
-
111,315.00
-
111,315.00
06-07
Various Road Improvements
4/05/07
1,111,500
2/02/16
2/02/17
1.000%
576,797.00
-
576,797.00
-
06-15
Construction of Softball Field
& Tot Lot
4/05/07
446,500
2/02/16
2/02/17
1.000%
225,853.00
-
225,853.00
-
07-04
Road & Drainage Improvemnts
North Burgee Drive
2/04/14
170,000
2/02/16
2/02/17
1.190%
170,000.00
-
170,000.00
-
2/02/17
2/02/18
1.306%
-
161,052.00
-
161,052.00
07-10
Acquisition of Garbage Truck
2/04/14
171,000
2/02/16
2/02/17
1.190%
171,000.00
-
171,000.00
-
2/02/17
2/02/18
1.306%
-
152,000.00
-
152,000.00
08-03
Acquisition & Installation of Automatic
Doors for Handicap Access
2/04/14
24,130
2/02/16
2/02/17
1.190%
24,130.00
-
24,130.00
-
2/02/17
2/02/18
1.306%
-
23,297.00
-
23,297.00
08-04
Improvements to Lexington Drive
2/04/14
395,675
2/02/16
2/02/17
1.190%
395,675.00
-
395,675.00
-
2/02/17
2/02/18
1.306%
-
374,850.00
-
374,850.00
09-05
Improvements to Forest Edge Drive
2/04/14
204,250
2/02/16
2/02/17
1.190%
204,250.00
-
204,250.00
-
2/02/17
2/02/18
1.306%
-
193,500.00
-
193,500.00
09-06
Improvements to Frog Pond Road
2/04/14
209,000
2/02/16
2/02/17
1.190%
209,000.00
-
209,000.00
-
2/02/17
2/02/18
1.306%
-
198,000.00
-
198,000.00
09-13
Various Capital Improvements
2/18/10
1,358,500
2/02/16
2/02/17
1.00%
1,037,490.00
-
1,037,490.00
-
10-20
Various Capital Improvements
6/14/11
1,324,300
2/02/16
2/02/17
1.00%
1,115,200.00
-
1,115,200.00
-
11-15
Various Capital Improvements
2/10/12
1,610,250
2/02/16
2/02/17
1.00%
1,406,222.00
-
1,406,222.00
-
2/02/17
2/02/18
1.306%
-
1,100,171.00
-
1,100,171.00
12-12
Various Capital Improvements
2/08/13
1,615,000
2/02/16
2/02/17
1.00%
1,540,292.00
-
1,540,292.00
-
13-14
Various Capital Improvements
2/04/14
2,042,360
2/02/16
2/02/17
1.000%
2,042,360.00
-
2,042,360.00
-
2/02/17
2/02/18
1.306%
-
1,924,829.00
-
1,924,829.00
Total
9,354,445.00
$
4,354,000.00
$
9,354,445.00
$
4,354,000.00
$
Bond Anticipation Note Renewal
4,354,000.00
$
Paid Down by Bond Proceeds
4,500,000.00
Paid Down by Current Fund
500,445.00
9,354,445.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
DESCRIPTION
AT DECEMBER 31, 2017
STATEMENT OF BOND ANTICIPATION NOTES
IMPROVEMENT
88
EXHIBIT C-9
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2016
INCREASED
DECREASED
2017
General Obligation Refunding 2/1/2010
3,275,000
08/01/18
300,000
3.750%
1,495,000.00
$
-
$
305,000.00
$
1,190,000.00
$
Bonds
08/01/19
300,000
4.000%
08/01/20
295,000
5.000%
08/01/21
295,000
5.000%
General Obligation Refunding 5/2/2012
5,260,000
11/15/18
545,000
4.000%
3,715,000.00
-
535,000.00
3,180,000.00
Bonds
11/15/19
545,000
2.000%
11/15/20
535,000
2.250%
11/15/21
525,000
2.500%
11/15/22
520,000
3.000%
11/15/23
510,000
2.750%
General Obligation Bonds
2/2/2017
$4,500,000
2/01/18
275,000
2.000%
-
4,500,000.00
-
4,500,000.00
2/01/19
325,000
2.000%
2/01/20
325,000
2.000%
2/01/21
275,000
2.000%
2/01/22
550,000
2.000%
2/01/23
550,000
2.000%
2/01/24
550,000
3.000%
2/01/25
550,000
3.000%
2/01/26
550,000
3.000%
2/01/27
550,000
3.000%
Totals
5,210,000.00
$
4,500,000.00
$
840,000.00
$
8,870,000.00
$
Paid from Current Fund
840,000.00
$
Total
840,000.00
$
MATURITIES OF
DECEMBER 31, 2016
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
AT DECEMBER 31, 2017
89
EXHIBIT C-10
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2016
DECREASED
2017
Open Space
10/22/02
255,220.00
$
2018
14,439.10
2.00%
89,311.28
$
14,154.60
$
75,156.68
$
Acquisition
2019
14,729.32
2020
15,025.39
2021
15,327.40
2022
15,635.47
Recreation Complex
7/18/02
500,000.00
2018
28,570.42
2.00%
161,173.05
28,007.48
133,165.57
2019
29,144.69
2020
29,730.50
2021
30,328.08
2022
15,392.88
Municipal Complex
9/7/05
250,000.00
2018
13,457.00
2.00%
120,962.00
13,192.00
107,770.00
2019
13,727.00
2020
14,004.00
2021
14,285.00
2022
14,572.00
2023
14,865.00
2024
15,164.00
2025
7,696.00
Construction of
11/27/06
250,000.00
2018
13,061.54
2.00%
140,266.24
12,804.18
127,462.06
Softball Field
2019
13,324.07
& Tot Lot
2020
13,591.89
2021
13,865.08
2022
14,143.77
2023
14,428.06
2024
14,718.07
2025
15,013.90
2026
15,315.68
Total
511,712.57
$
68,158.26
$
443,554.31
$
MATURITIES OF
DECEMBER 31, 2017
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GREEN TRUST LOAN PAYABLE
AT DECEMBER 31, 2017
90
EXHIBIT C-11
BALANCE
2017
BALANCE
ORDINANCE
IMPROVEMENT
DECEMBER 31,
AUTHORIZATIONS
2016
NOTES
DECEMBER 31,
NUMBER
DESCRIPTION
2016
/INCREASES
REDUCTIONS
ISSUED
2017
96-10/99-09
Satellite Repeaters & Logging
Recorders
250.00
$
-
$
-
$
-
$
250.00
$
99-23
Municipal Complex
2,230.00
-
-
-
2,230.00
00-05
Sewer Line Extension -
Atlantis
4,571.00
-
-
-
4,571.00
02-22
Purchase of Street Sweeper
80.00
-
-
-
80.00
07-25
Acquisition of Land
1,282,500.00
-
-
-
1,282,500.00
09-06
Improvements to Frog Pond Road
170,498.00
-
-
-
170,498.00
14-10
Various Capital Improvements
1,871,500.00
-
-
-
1,871,500.00
16-05
Various Capital Improvements
3,320,250.00
-
-
-
3,320,250.00
17-08
Various Capital Improvements
-
1,619,750.00
-
-
1,619,750.00
Total
6,651,879.00
$
1,619,750.00
$
-
$
-
$
8,271,629.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
AT DECEMBER 31, 2017
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
91
EXHIBIT C-12
Balance December 31, 2016
170,498.16
$
Increased By:
Grants Previously Awarded
226,192.00
Balance December 31, 2017
396,690.16
$
2009-13 Various Capital Improvements - Frog Pond Road Phase 1
170,498.16
$
2014-10 Various Capital Improvements
129,417.00
2016-05 Various Capital Improvements
96,775.00
Total
396,690.16
$
ANALYSIS OF BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF STATE ROAD AID ALLOTMENTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2017
92
PAYROLL FUND
93
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94
EXHIBIT D-1
PAYROLL FUND
STATEMENT OF PAYROLL FUND CASH
FOR THE YEAR ENDED DECEMBER 31, 2017
Balance December 31, 2016
196,472.06
$
Increased by:
Receipts
12,325,406.09
Subtotal
12,521,878.15
Decreased by:
Disbursements:
Net Pay
5,907,793.22
$
Payment to Agencies
6,385,184.79
12,292,978.01
Balance December 31, 2017
228,900.14
$
EXHIBIT D-2
FOR THE YEAR ENDED DECEMBER 31, 2017
Balance December 31, 2016
192,095.44
$
Increased by:
Payroll Deductions
6,417,612.87
Subtotal
6,609,708.31
Decreased by:
Due Current Fund
21,360.02
$
Disbursements
6,385,184.79
6,406,544.81
Balance December 31, 2017
203,163.50
$
ANALYSIS OF BALANCE
Federal Tax Liability
107,763.82
$
State Tax Liability
14,707.72
PERS
28,775.22
PFRS
51,916.74
Balance December 31, 2017
203,163.50
$
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF PAYROLL TAXES PAYABLE
95
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96
TOWNSHIP OF LITTLE EGG HARBOR
PART II
SCHEDULE OF FINANCIAL STATEMENT FINDINGS -
GOVERNMENT AUDITING STANDARDS
FOR THE YEAR ENDED DECEMBER 31, 2017
97
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98
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINANCIAL STATEMENT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2017
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.
Finding 2017-001
Criteria or specific requirement:
A proper General Ledger should be maintained by the Township.
Condition:
Tax adjustments and other closing entries are not being properly posted in the Township’s general ledger
accounting system for the Current Fund and the General Capital Fund.
Cause:
Lack of supporting staff in finance office.
Effect or potential effect:
A delay in timely and accurate year end numbers for Current and General Capital Funds.
Recommendation:
That the Township posts all adjusting and closing entries to the general ledger at year end for all funds.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective
action plan.
99
TOWNSHIP OF LITTLE EGG HARBOR
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
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.
Finding No. 2016-001
Condition:
Tax adjustments and other closing entries are not being properly posted in the Township’s General
Ledger accounting system for the Current Fund and the General Capital Fund.
Current Status:
This finding has not been corrected. See Finding 2017-001
FEDERAL AWARDS
N/A – No Federal Single Audit findings in prior year.
STATE FINANCIAL ASSISTANCE
N/A – No State Single Audit in prior year.
100
TOWNSHIP OF LITTLE EGG HARBOR
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
101
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102
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2017:
Name
Title
Ray Gormley
Mayor
Barbara Jo Crea
Deputy Mayor
John Kehm, Jr
Committeeman
Dave Schlick
Committeeman
Lisa Stevens
Committeewoman
Garrett Loesch
Chief Financial Officer, Township Administrator
Diana McCracken
Township Clerk
Dayna Wilson
Tax Collector, Tax Search Officer
Alina Bertram
Court Administrator
103
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104
Honorable Mayor and Members
of the Township Committee
Township of Little egg harbor
Little Egg Harbor, New Jersey
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, 2017.
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:II-4 was $40,000 for the year ended December 31, 2017.
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.
105
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 1, 2017 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 Township Committee of the Township of Little Egg
Harbor, 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 Township Committee of the Township of Little Egg
Harbor, 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):
*Finding 2017-01 (Finding 2017-001 in the Schedule of Financial Statement Findings section) – Tax
adjustments and other closing entries are not being properly posted in the Township’s general ledger
accounting system for the Current Fund and the General Capital Fund.
*Denotes Prior Year Finding.
RECOMMENDATIONS:
Finding 2017-01
That the Township posts all adjusting and closing entries to the general ledger at year end for all funds.
106
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.
Kevin P. Frenia
Certified Public Accountant
Registered Municipal Accountant
RMA No. 435
Medford, New Jersey
June 8, 2018
107
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