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Audit Report for the Year Ended 12/31/18
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Executive Summary
The Township of Little Egg Harbor's audit report for the year ended December 31, 2018, provides a review of the township's financial position and compliance with regulatory requirements. The report includes independent auditor's reports on the financial statements and internal controls, as well as detailed financial statements for various funds, including the Current Fund, Trust Fund, General Capital Fund, and Payroll Fund. Supplemental exhibits provide further analysis of financial data, and a letter of comments and recommendations addresses regulatory basis observations. A single audit section covering state financial assistance is included. The independent auditor's report found the financial statements were not prepared in accordance with generally accepted accounting principles (GAAP), but rather the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. However, the audit noted the financial statements did present fairly in all material respects the assets, liabilities, reserves and fund balance - regulatory basis of the various funds of the Township.
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--- Document: Audit Report for the Year Ended 12/31/18 Document ---
TOWNSHIP OF LITTLE EGG HARBOR
AUDIT REPORT FOR THE YEAR
ENDED DECEMBER 31, 2018
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
Statements 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
63
Schedule of Taxes Receivable & Analysis of Property
Tax Levy
A-5
64
Schedule of Tax Title Liens
A-6
65
Schedule of Property Acquired for Taxes
A-7
65
Statement of Revenue Accounts Receivable
A-8
66
Schedule of 2017 Appropriation Reserves
A-9
67
(continued)
EXHIBITS PAGE
Supplemental Exhibits (continued):
Current Fund (continued):
Schedule of Local District Tax
A-10
69
Schedule of Regional High School Tax Payable
A-11
69
Schedule of Various Reserves
A-12
70
Schedule of State and Federal Grants Receivable
A-13
71
Schedule of Reserves for State and Federal
Grants - Appropriated
A-14
72
Schedule of Reserve for State Grants - Unappropriated
A-15
73
Trust Fund:
Schedule of Cash - Treasurer
B-1
77
Schedule of Cash – Collector – Tax Title Lien
Redemption
B-2
77
Schedule of Cash Dog Warden
B-3
78
Schedule of Reserve for Dog Fund Expenditures
B-4
78
Schedule of Deposits for Redemption of Tax Sale
Certificates
B-5
78
Schedule of Reserve for Escrow Deposits
B-6
79
Schedule of Reserve for Forfeited Property
B-7
79
Schedule of Reserve for Planning Board
B-8
80
Schedule of Reserve for Recreation
B-9
80
Schedule of Reserve for Open Space
B-10
81
Schedule of Reserve for Community Center
B-11
81
Schedule of Reserve for Federal Forfeiture Law
B-12
82
Schedule of Reserve for Sick and Vacation Time Trust
B-13
82
Schedule of Reserve for COAH Trust Fund
B-14
83
Schedule of Reserve for Police Community Activities
B-15
83
Schedule of Reserve for Police K-9 Equipment Donations
B-16
84
Schedule of Reserve for Police Evidence Deposits
B-17
84
General Capital Fund:
Schedule of Fund Balance
C-1
87
Schedule of Cash – Treasurer
C-2
87
Analysis of Cash
C-3
88
Schedule of Deferred Charges to Future Taxation–Funded
C-4
90
Schedule of Deferred Charges to Future Taxation–Unfunded
C-5
91
Schedule of Capital Improvement Fund
C-6
92
Schedule of Improvement Authorizations
C-7
93
Schedule of Bond Anticipation Notes
C-8
94
Schedule of General Serial Bonds
C-9
95
Schedule of Green Trust Loan Payable
C-10
96
Schedule of Bonds & Notes Authorized But Not Issued
C-11
97
Schedule of State Road Aid Allotments Receivable
C-12
98
Payroll Fund:
Statement of Payroll Fund Cash
D-1
101
Statement of Payroll Taxes Payable
D-2
101
(continued)
EXHIBITS PAGE
PART II
Independent Auditor’s Report on Compliance For Each
Major Program and on Internal Control Over Compliance
Required by New Jersey OMB Circular 15-08
105
Schedule of Expenditures of State Financial Awards
109
Notes to Schedule of Expenditures of State Financial Assistance
111
Schedule of Findings & Questioned Costs
113
Summary of Prior Audit Findings and Questioned Costs
As Prepared by Management
116
PART III
Letter of Comments and Recommendations – Regulatory Basis:
Officials in Office
119
General Comments
121
Other Comments (Findings)
122
Recommendations
122
Acknowledgment
123
(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, 2018
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, 2018 and 2017, and
the related statements of operations and changes in in fund balance - regulatory basis for the years then ended, the
related statement of revenues - regulatory basis, and statement of expenditures - regulatory basis for the year ended
December 31, 2018 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 entity’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 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.
1
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America
As discussed in Note 1 to the financial statements, the Township prepares its financial statements using accounting
practices that demonstrate compliance with regulatory basis of accounting and budget laws 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, 2018 and 2017, 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,
2018 and 2017, and the results of its operations and changes in fund balance - regulatory basis of such funds for the
years then ended, and the related statement of revenues - regulatory basis, statement of expenditures - regulatory
basis, and general fixed assets group of accounts – regulatory basis, for the year ended December 31, 2018 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.
Emphasis of Matter
Change in Accounting Principle
As discussed in Note 1 to the financial statements, during the year ended December 31, 2018 the Township adopted
Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Post-employment Benefits Other than Pensions - an Amendment of GASB Statement No. 45, 57, & 74. Our
opinion is not modified with respect to this matter.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements referred to in the first
paragraph as a whole. 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 is not a required part of the
basic financial statements. The accompanying schedules of expenditures and federal awards and state financial
assistance, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid are also presented for purposes
of additional analysis and are not a required part of the basic financial statements.
2
The supplemental schedules presented for the various funds and the schedules of expenditures of state financial
assistance are the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the 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 August 5, 2019 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 # 435
Medford, New Jersey
August 5, 2019
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
County of Ocean
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, 2018, and the related notes to the financial statements, which collectively comprise the
Township's basic financial statements, and have issued our report thereon dated August 5, 2019. 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.
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. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
5
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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.
We noted certain other matters that are not required to be reported under Governmental Auditing
Standards, that we reported to management in the accompanying letter of comments and
recommendations section of this report as required by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the 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
August 5, 2019
6
BASIC FINANCIAL STATEMENTS
7
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8
EXHIBIT A
(Page 1 of 2)
CURRENT FUND
ASSETS
REFERENCE
2018
2017
Operating Fund:
Cash:
Treasurer
A-4
6,246,638.44
$
9,887,440.97
$
Change Fund
A
1,800.00
1,870.00
Total Cash
6,248,438.44
9,889,310.97
Other Receivables:
Due From State of New Jersey
A
241,986.54
244,124.89
Total Other Receivables
241,986.54
244,124.89
Deferred Charges:
Overexpenditure of Appropriation Reserves
A-9
249,536.59
-
Total Deferred Charges
249,536.59
-
Receivables & Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-5
76,581.35
63,632.17
Tax Title Liens Receivable
A-6
812,765.26
647,630.63
Property Acquired/Assessed Valuation
A-7
5,757,700.00
5,757,700.00
Revenue Accounts Receivable
A-8
12,525.96
14,024.06
Due from Trust Other
B
6,303.22
79,307.25
Due from Payroll
D
127,813.72
25,736.64
Prepaid School Taxed
A-11
103,812.29
-
Total Receivables
6,897,501.80
6,588,030.75
Special Emergency Appropriations:
Community Disaster Loan
A
4,375,025.68
4,348,463.18
Total Deferred Charges
4,375,025.68
4,348,463.18
Total Operating Fund Assets
18,012,489.05
21,069,929.79
Federal & State Grant Fund:
Cash - Treasurer
A-4
384,070.47
977,541.95
Grants Receivable
A-13
2,133,111.65
1,985,939.57
Due from Current Fund
A
782.00
229,846.77
Total Federal & State Grant Fund Assets
2,517,964.12
3,193,328.29
Total Assets
20,530,453.17
$
24,263,258.08
$
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2018 AND 2017
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
9
EXHIBIT A
(Page 2 of 2)
LIABILITIES RESERVES & FUND BALANCE
REFERENCE
2018
2017
Operating Fund:
Appropriation Reserve:
Encumbered
A-3/A-9
103,537.52
$
56,691.20
$
Unencumbered
A-3
427,466.20
1,323,988.34
Prepaid Taxes
A-4
679,278.79
1,765,588.34
Tax Overpayments
A
174,398.28
165,325.29
Due County for Added & Omitted Taxes
A
84,984.67
128,995.83
Local School Taxes Payable
A-10
1,204,632.46
1,033,336.00
Regional School Taxes Payable
A-11
-
185,423.00
Special District Taxes Payable
A
-
20,740.00
Due Bass River - UCC Fees
A
1,192.80
3,110.20
Due to State - DCA Training Fees
A
7,661.00
17,828.83
Due to State - Marriage Licenses
A
725.00
-
Due General Capital Fund
C
-
198,995.86
Due to Grant Fund
A
782.00
229,846.77
Reserve for Insurance Proceeds
A-12
2,419.00
2,419.00
Reserve for Reassessment
A-12
100,047.00
100,047.00
Reserve for Closed Escrow Accounts
A-12
54,052.92
54,291.00
Reserve for Retail Mercantile Licenses
A-12
2,700.00
-
Reserve for Debt Service -Green Acres
A-12
7,772.89
-
Reserve for FEMA Proceeds
A
3,722.78
50,000.00
CDL - Loan Payable
A
4,250,000.00
4,250,000.00
CDL - Interest Payable
A
125,025.68
98,463.18
Total Operating Liabilities
7,230,398.99
9,685,089.84
Reserve for Receivables
A
6,897,501.80
6,588,030.75
Fund Balance
A-1
3,884,588.26
4,796,809.20
Total Operating Fund
18,012,489.05
21,069,929.79
Federal & State Grant Fund:
Reserve for State Grants:
Appropriated Reserves
A-14
2,505,825.93
2,726,886.33
Unappropriated Reserves
A-15
9,855.25
13,986.42
Encumbrances Payable
A-14
2,282.94
7,927.40
Due to General Capital Fund
C
-
444,528.14
Total Federal & State Grant Fund
2,517,964.12
3,193,328.29
Total Liabilities Reserve & Fund Balance
20,530,453.17
$
24,263,258.08
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2018 AND 2017
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to Financial Statements are an integral part of this statement.
10
EXHIBIT A-1
2018
2017
Revenue & Other Income Realized:
Fund Balance Utilized
2,850,000.00
$
2,850,000.00
$
Miscellaneous Revenues Anticipated
3,778,923.99
3,903,222.51
Receipts From Delinquent Taxes
62,208.94
137,618.41
Receipts From Current Taxes
56,050,262.72
54,748,254.81
Nonbudget Revenues
749,123.56
792,584.27
Other Credits to Income:
Senior & Vet Deduction Adjustment
15,232.19
-
Interfunds Returned
73,192.17
-
Unexpended Balance of Appropriation Reserves
851,075.31
1,533,417.41
Total Revenue & Other Income
64,430,018.88
63,965,097.41
Expenditures:
Budget & Emergency Appropriations:
Appropriations Within "CAPS":
Operations:
Salaries and Wages
8,985,150.00
9,014,855.00
Other Expenses
7,617,572.04
7,235,617.23
Deferred Charges & Statutory Expenditures
2,384,706.72
2,158,862.32
Appropriations Excluded From "CAPS":
Operations:
Salaries and Wages
415,000.00
425,000.00
Other Expenses
725,688.65
599,263.43
Capital Improvement Fund
100,000.00
100,000.00
Municipal Debt Service
1,716,466.68
1,733,048.86
County Taxes
9,746,839.84
9,798,551.88
Local District School Tax
13,656,994.29
13,152,713.00
Regional High School Tax
15,250,618.00
14,764,513.00
Special District Taxes
1,678,653.00
1,673,951.00
Municipal Open Space
23,377.70
23,349.96
Tax Overpayment Adjustment
191,172.90
68,965.00
Interfund Advances
-
165,277.87
Total Expenditures
62,492,239.82
60,913,968.55
Excess/(Deficit) in Revenue
1,937,779.06
3,051,128.86
Fund Balance January 1,
4,796,809.20
4,595,680.34
Total
6,734,588.26
7,646,809.20
Decreased by: Utilized as Anticipated Revenue
2,850,000.00
2,850,000.00
Fund Balance December 31, 2018
3,884,588.26
$
4,796,809.20
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
STATEMENTS OF OPERATIONS AND CHANGES
IN FUND BALANCE - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
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
10,375.00
-
10,814.00
439.00
Other
93,000.00
-
231,427.58
138,427.58
Municipal Court
231,000.00
-
204,813.30
(26,186.70)
Interest & Cost on Taxes
94,826.08
-
106,341.09
11,515.01
Payments in Lieu of Taxes
67,000.00
-
68,634.41
1,634.41
Energy Receipts Tax
1,299,939.00
-
1,299,939.00
-
Uniform Construction Code Fees
650,000.00
-
466,503.70
(183,496.30)
Garden State Trust
149,117.00
-
149,117.00
-
Tower Rental
182,000.00
-
204,402.73
22,402.73
SRO Reimbursement
225,000.00
-
231,479.24
6,479.24
CATV Franchise Fees
90,000.00
-
99,498.29
9,498.29
Additional Revenues Offset With Appropriations:
Clean Communities Program
-
51,039.06
51,039.06
-
Ocean County Recycling Revenue and Residue
10,054.00
-
10,054.00
-
Recycling Tonnage Grant
30,928.59
-
30,928.59
-
NJ DOT Municipal Aid Road Grant 2017
200,000.00
-
200,000.00
-
Department of Justice
1,488.00
-
1,488.00
-
Coastal Zone Management
2,444.00
-
2,444.00
-
NJ DOT Municipal Aid Road Grant 2018
350,000.00
-
350,000.00
-
Safe and Secure Communities
-
60,000.00
60,000.00
-
Total Miscellaneous
3,687,171.67
111,039.06
3,778,923.99
(19,286.74)
Receipts from Delinquent Taxes
119,000.00
-
62,208.94
(56,791.06)
Subtotal General Revenues
6,656,171.67
111,039.06
6,691,132.93
(76,077.80)
Amount to be Raised by Taxes for Support to Municipal
Budget - Local Tax for Municipal Purposes
15,604,864.10
-
16,224,080.60
619,216.50
Budget Totals
22,261,035.77
111,039.06
22,915,213.53
543,138.70
Nonbudget Revenues
-
-
749,123.56
749,123.56
Total
22,261,035.77
$
111,039.06
$
23,664,337.09
$
1,292,262.26
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
The accompanying Notes to Financial Statements are an integral part of this statement.
12
EXHIBIT A-2
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
Allocation of Current Tax Collections:
Revenue From Collections
56,050,262.72
$
Allocated to - School, County & Special District Taxes
40,252,670.54
Balance for Support of Municipal Budget Revenues
15,797,592.18
Add: Appropriation - "Reserve for Uncollected Taxes"
426,488.42
Amount for Support of Municipal Budget Appropriations
16,224,080.60
$
Receipts From Delinquent Taxes:
Delinquent Tax Collections
7,317.27
$
Tax Title Lien Collections
54,891.67
Total Receipts From Delinquent Taxes
62,208.94
$
Analysis of Nonbudget Revenue:
Treasurer:
Insurance Reimbursements
79,069.73
$
Interest on Investments and Deposits
32,787.25
Trash Cans
16,395.00
Forfeited Premiums
46,910.00
Senior & Vet Admin Fee
6,354.71
Refund Expenditures for prior year grant
316,915.65
FEMA Reimbursement
172,163.86
Miscellaneous Tax Collector
53,687.39
Other
24,839.97
Total Analysis of Nonbudget Revenue
749,123.56
$
ANALYSIS OF REALIZED REVENUE
The accompanying Notes to Financial Statements are an integral part of this statement.
13
EXHIBIT A-3
(Page 1 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
General Government:
General Administration:
Salaries and Wages
90,000.00
$
90,250.00
$
90,219.16
$
-
$
30.84
$
-
$
Other Expenses
15,000.00
4,000.00
3,370.90
-
629.10
-
Mayor and Committee:
Salaries and Wages
85,000.00
84,600.00
84,527.09
-
72.91
-
Other Expenses
5,000.00
3,500.00
2,588.81
24.00
887.19
-
Municipal Clerk:
Salaries and Wages
250,000.00
256,400.00
256,155.99
-
244.01
-
Other Expenses
70,000.00
56,000.00
51,559.13
66.05
4,374.82
-
Financial Administration (Treasury):
Salaries and Wages
300,000.00
316,100.00
316,065.32
-
34.68
-
Other Expenses
40,000.00
35,000.00
33,481.40
836.72
681.88
-
Audit Services:
Other Expenses
67,500.00
60,020.00
23,164.75
-
36,855.25
-
Revenue Administration (Tax Collection):
Salaries and Wages
205,000.00
191,000.00
190,147.08
-
852.92
-
Other Expenses:
Tax Sale Costs
10,000.00
10,000.00
3,556.34
69.50
6,374.16
-
Miscellaneous Other Expenses
20,000.00
20,000.00
18,567.69
597.56
834.75
-
Tax Assessment Administration:
Salaries and Wages
295,000.00
245,000.00
243,292.50
-
1,707.50
-
Other Expenses
5,000.00
4,000.00
1,679.31
1,379.95
940.74
-
Liquidation of Tax Title Liens & Foreclosed
Property - Other Expenses
2,000.00
-
-
-
-
Legal Services (Legal Department):
Other Expenses
300,000.00
378,000.00
353,077.34
1,350.00
23,572.66
-
Engineering Services:
Other Expenses
140,000.00
160,000.00
144,332.25
5,925.00
9,742.75
-
Land Use Administration:
Planning Board:
Salaries and Wages
20,000.00
3,000.00
900.00
-
2,100.00
-
Other Expenses
2,500.00
2,000.00
1,385.00
-
615.00
-
Zoning Board of Adjustment:
Salaries and Wages
10,000.00
1,000.00
-
-
1,000.00
-
Other Expenses
10,000.00
4,600.00
3,370.38
-
1,229.62
-
Zoning Officer:
Salaries and Wages
265,000.00
268,000.00
267,758.52
-
241.48
-
Other Expenses
16,000.00
15,000.00
14,040.18
260.00
699.82
-
Insurance:
Liability Insurance
2,895,731.00
2,969,831.00
2,949,206.33
-
20,624.67
-
Unemployment Insurance
40,000.00
40,000.00
34,890.87
-
5,109.13
-
Group Insurance for Employees
Health Benefit Waiver
170,000.00
172,500.00
171,036.61
-
1,463.39
-
Other Insurance: JIF, Surety, Workers Comp
492,841.04
474,841.04
474,429.53
411.51
-
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
APPROPRIATIONS
The accompanying Notes to Financial Statements are an integral part of this statement.
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
5,265,000.00
5,293,500.00
5,286,608.45
-
6,891.55
-
Other Expenses
185,000.00
216,000.00
181,624.11
12,614.61
21,761.28
-
Accreditation Software
21,000.00
-
-
-
-
-
Office of Emergency Management:
Salaries and Wages
22,500.00
22,500.00
22,500.00
-
-
-
Other Expenses
1,200.00
200.00
-
-
200.00
-
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
50,000.00
45,000.00
-
5,000.00
-
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
295,000.00
305,500.00
304,828.44
-
671.56
-
Other Expenses
82,500.00
77,500.00
71,307.99
4,790.56
1,401.45
-
Solid Waste Sanitation:
Salaries and Wages
235,000.00
251,225.00
250,195.02
-
1,029.98
-
Other Expenses
132,500.00
119,300.00
100,658.46
11,760.77
6,880.77
-
Bulk Property Maintenance Pick-Up
100,000.00
-
-
-
-
-
Solid Waste Recycling:
Salaries and Wages
300,000.00
305,600.00
304,848.65
-
751.35
-
Other Expenses
28,000.00
28,000.00
17,970.21
1,526.25
8,503.54
-
Buildings & Grounds:
Salaries and Wages
273,000.00
271,200.00
269,835.46
-
1,364.54
-
Other Expenses
110,000.00
118,250.00
111,666.84
6,072.83
510.33
-
Vehicle Maintenance:
Salaries and Wages
190,000.00
157,575.00
152,249.96
-
5,325.04
-
Other Expenses
145,000.00
158,000.00
138,710.03
18,342.55
947.42
-
Municipal Services Act:
Other Expenses
60,000.00
60,000.00
15,137.52
-
44,862.48
-
County Mosquito Control Agency:
Salaries and Wages
14,000.00
-
-
-
-
-
Other Expenses
58,000.00
13,000.00
12,275.38
-
724.62
-
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
7,500.00
1,500.00
300.00
-
1,200.00
-
Other Expenses
5,000.00
4,000.00
3,542.43
-
457.57
-
Environmental Health Services:
Salaries and Wages
1,200.00
1,200.00
800.00
-
400.00
-
Other Expenses
200.00
400.00
365.00
-
35.00
-
Animal Control Services:
Other Expenses
60,000.00
46,000.00
41,846.00
657.00
3,497.00
-
Contributions to Social Service Agencies - Statutory:
Long Beach Island Community Center
1,000.00
1,000.00
-
-
1,000.00
-
Providence House
40,000.00
40,000.00
20,000.00
-
20,000.00
-
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
APPROPRIATIONS
EXPENDED
The accompanying Notes to Financial Statements are an integral part of this statement.
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
145,000.00
154,000.00
153,339.53
-
660.47
-
Other Expenses
25,000.00
23,000.00
21,435.82
1,240.18
324.00
-
Senior Center/Community Activities:
Other Expenses
2,500.00
2,500.00
1,146.20
-
1,353.80
-
Utility Expenses & Bulk Purchases:
Electricity
190,000.00
178,000.00
161,393.42
-
16,606.58
-
Street Lighting
405,000.00
397,350.00
364,160.61
1,103.16
32,086.23
-
Telephone
190,000.00
201,500.00
186,984.51
5,102.38
9,413.11
-
Fuel Oil/Natural Gas
40,000.00
30,000.00
24,518.36
5,146.62
335.02
-
Gasoline
210,000.00
263,000.00
227,208.38
21,841.97
13,949.65
-
Landfill/Solid Waste Disposal Costs:
Sanitary Landfill
750,000.00
825,630.00
825,630.00
-
-
-
Uniform Construction Code Enforcement Functions:
Construction Code Official:
Salaries and Wages
490,000.00
450,500.00
449,777.94
-
722.06
-
Other Expenses
20,000.00
20,000.00
18,941.80
-
1,058.20
-
Municipal Court:
Salaries and Wages
331,000.00
315,500.00
312,559.16
-
2,940.84
-
Other Expenses
25,000.00
16,000.00
11,982.48
2,829.86
1,187.66
-
Public Defender:
Other Expenses
50,000.00
35,000.00
30,860.00
-
4,140.00
-
Other Common Operating Functions (Unclassified):
Municipal Alliance Council
17,000.00
17,000.00
15,841.01
-
1,158.99
-
Celebration of Public Events:
Other Expenses
6,000.00
6,000.00
6,000.00
-
-
-
Accumulated Sick & Vacation Fund
150,000.00
150,000.00
150,000.00
-
-
-
Reserve for Disputed Contracts
68,000.00
39,250.00
39,215.32
-
34.68
-
Total Operations Within "CAPS"
16,696,072.04
16,602,722.04
16,088,466.97
103,537.52
410,717.55
-
Detail:
Salaries and Wages
9,089,200.00
8,985,150.00
8,956,908.27
-
28,241.73
-
Other Expenses
7,606,872.04
7,617,572.04
7,131,558.70
103,537.52
382,475.82
-
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Statutory Expenditures:
Social Security System (O.A.S.I.)
685,000.00
731,000.00
725,386.38
-
5,613.62
-
Defined Contribution Retirement Program
3,000.00
1,500.00
789.67
-
710.33
-
Consolidated Police & Firemen's
Pension
1,162,371.00
1,163,221.00
1,163,197.51
-
23.49
-
Public Employees Retirement
System
450,985.72
488,985.72
488,967.86
-
17.86
-
Total Deferred Charges & Statutory
Expenditures Within "CAPS"
2,301,356.72
2,384,706.72
2,378,341.42
-
6,365.30
-
Total General Appropriations for Municipal
Purposes Within "CAPS"
18,997,428.76
18,987,428.76
18,466,808.39
103,537.52
417,082.85
-
EXPENDED
APPROPRIATIONS
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
The accompanying Notes to Financial Statements are an integral part of this statement.
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:
Ocean County Recycling Revenue Share
10,054.00
10,054.00
10,054.00
-
-
-
Department of Justice
1,488.00
1,488.00
1,488.00
-
-
-
Coastal Zone Management
2,444.00
2,444.00
2,444.00
-
-
-
Recycling Tonnage Grant
30,928.59
30,928.59
30,928.59
-
-
-
NJ DOT Municipal Aid Road Grant 2017
200,000.00
200,000.00
200,000.00
-
-
-
NJ DOT Municipal Aid Road Grant 2018
350,000.00
350,000.00
350,000.00
-
-
-
Safe & Secure Communities
-
60,000.00
60,000.00
-
-
-
Clean Communities Grant CY18
-
51,039.06
51,039.06
-
-
-
Police Dispatch/911:
Salaries and Wages
415,000.00
425,000.00
419,116.65
-
5,883.35
-
Other Expenses
4,500.00
4,500.00
-
-
4,500.00
-
Supplemental Aid to Fire Districts
5,235.00
5,235.00
5,235.00
-
-
-
Total Operations Excluded from
"CAPS"
1,019,649.59
1,140,688.65
1,130,305.30
-
10,383.35
-
Detail:
Salaries and Wages
415,000.00
415,000.00
419,116.65
-
5,883.35
-
Other Expenses
604,649.59
725,688.65
711,188.65
-
4,500.00
-
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
1,120,000.00
1,120,000.00
1,120,000.00
-
-
-
Payment of Bond Anticipation Notes
& Capital Notes
275,000.00
275,000.00
274,000.00
-
-
1,000.00
Interest on Bonds
249,488.00
249,488.00
249,487.50
-
-
0.50
Interest on Notes
57,434.00
57,434.00
57,433.38
-
-
0.62
Green Acres Trust Loan Program:
Principal & Interest
13,458.00
13,458.00
13,458.00
-
-
-
Green Trust Loans: Interest
2,089.00
2,089.00
2,087.80
-
-
1.20
Total Municipal Debt Service Excluded
From "CAPS"
1,717,469.00
1,717,469.00
1,716,466.68
-
-
1,002.32
Total General Appropriations Excluded
From "CAPS"
2,837,118.59
2,958,157.65
2,946,771.98
-
10,383.35
1,002.32
Subtotal General Appropriations
21,834,547.35
21,945,586.41
21,413,580.37
103,537.52
427,466.20
1,002.32
Reserve For Uncollected Taxes
426,488.42
426,488.42
426,488.42
-
-
-
Total General Appropriations
22,261,035.77
$
22,372,074.83
$
21,840,068.79
$
103,537.52
$
427,466.20
$
1,002.32
$
Adopted Budget
22,261,035.77
$
Added by N.J.S.40A:4-87
111,039.06
Total
22,372,074.83
$
Federal & State Grants
705,953.65
$
Reserve for Uncollected Taxes
426,488.42
Refunds
(584,152.25)
Due to General Capital - Capital Improvement Fund
100,000.00
Disbursed
21,191,778.97
Total
21,840,068.79
$
APPROPRIATIONS
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
CURRENT FUND
The accompanying Notes to Financial Statements are an integral part of this statement.
17
EXHIBIT B
ASSETS
REFERENCE
2018
2017
Assessment Fund:
Cash
B-1
54,096.41
$
54,096.41
$
Total Assessment Fund
54,096.41
54,096.41
Animal Control Trust:
Cash
27.00
-
27.00
-
Other Funds:
Cash - Treasurer
B-1
4,045,599.12
3,095,391.65
Cash - Collector
B-2
1,475,259.74
1,706,969.93
CDBG Receivable
B
-
3,600.00
Due from General Capital Fund
C
-
1,000,000.00
Total Other Funds
5,520,858.86
5,805,961.58
Total Assets
5,574,982.27
$
5,860,057.99
$
LIABILITIES, RESERVES & FUND BALANCE
Assessment Fund:
Fund Balance
B
54,096.41
$
54,096.41
$
Total Assessment Fund
54,096.41
54,096.41
Animal Control Trust:
Reserve for Dog Fund
27.00
-
Total Animal Control Fund
27.00
-
Other Funds:
Reserves for:
Deposits for Tax Title Redemptions
B-5
1,475,259.74
1,706,969.93
Escrow Deposits
B-6
1,399,244.93
1,351,109.86
Forfeited Property
B-7
40,920.73
28,798.88
Planning Board
B-8
27,715.56
80,011.94
Recreation Trust
B-9
2,057.05
2,057.00
COAH Funds
B-14
301,559.15
260,600.72
Open Space
B-10
1,722,985.19
2,239,689.26
Community Center
B-11
3,582.88
3,582.88
Federal Forfeiture Law Enforcement Funds
B-12
4,265.66
5,853.05
Sick/Vacation Funds
B-13
50,127.87
46,294.81
Police Community Activities
B-15
1,100.00
1,100.00
Police K-9 Equipment Donations
B-16
1,736.08
-
Police Evidence Deposits
B-17
3,352.80
-
POAA Funds
B
648.00
586.00
Due to Current Fund
A
6,303.22
79,307.25
Due to Current Fund - Open Space Trust
A
480,000.00
-
Total Other Funds
5,520,858.86
5,805,961.58
Total Liabilities, Reserves & Fund Balance
5,574,982.27
$
5,860,057.99
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
DECEMBER 31, 2018 AND 2017
AND FUND BALANCE - REGULATORY BASIS
The accompanying Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT C
REFERENCE
2018
2017
Cash & Cash Equivalents
C-2
2,389,462.10
$
190,867.85
$
State Road Aid Allotments Receivable
C-12
-
396,690.16
Interfund Receivable - Current
A
-
198,995.86
Due from Grant Fund
A
-
444,528.14
Due from Open Space Trust
B
480,000.00
-
Due from NJEIT
C
3,025,961.00
-
Deferred Charges to Future Taxation:
Funded
C-4
12,174,355.25
9,313,554.31
Unfunded
C-5
16,413,854.17
12,625,629.00
Total Assets
34,483,632.52
$
23,170,265.32
$
Bond Anticipation Notes Payable
C-8
10,520,000.00
$
4,354,000.00
$
General Serial Bond
C-9
7,750,000.00
8,870,000.00
Green Trust Loan Payable
C-10
374,026.25
443,554.31
NJEIT Loan Payable
C
4,050,329.00
-
Capital Improvement Fund
C-6
96,044.00
32,394.00
Encumbrances Payable
C-7
687,951.34
314,388.20
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
2,409,853.30
961,670.57
Unfunded
C-7
7,673,708.27
6,720,068.16
Reserve for Receivable-State Road Aid Receivable
C
-
396,690.16
Reserve for Debt Service
C
780,233.44
-
Reserve for Debt Service - Premiums on BANS
C
63,987.00
-
Fund Balance
C-1
73,777.92
73,777.92
Total Liabilities, Reserves & Fund Balance
34,483,632.52
$
23,170,265.32
$
There were bonds and notes authorized but not issued on December 31, 2018 of $6,551,452.00 and
on December 31, 2017 of $8,271,629.00.
LIABILITIES, RESERVES & FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ASSETS
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2018 AND 2017
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to the Financial Statement are an integral part of this Statement.
19
EXHIBIT D
REFERENCE
2018
2017
Cash - Treasurer
D-1
212,027.77
$
228,900.14
$
Total
212,027.77
$
228,900.14
$
Payroll Taxes Payable
D-2
84,214.05
$
203,163.50
$
Due to Current Fund
A
127,813.72
25,736.64
Total
212,027.77
$
228,900.14
$
TOWNSHIP OF LITTLE EGG HARBOR
LIABILITIES
ASSETS
DECEMBER 31, 2018 AND 2017
AND FUND BALANCE - REGULATORY BASIS
PAYROLL FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
The accompanying Notes to the Financial Statements are an integral part of this Statement.
20
EXHIBIT E
2018
2017
Land and Improvements
7,789,600.00
$
7,789,600.00
$
Building
10,473,776.00
10,473,776.00
Equipment
11,932,952.03
11,877,971.97
Total
30,196,328.03
$
30,141,347.97
$
Investment in Fixed Assets
30,196,328.03
$
30,141,347.97
$
FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2018 AND 2017
FUND BALANCE - REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP
STATEMENTS OF FIXED ASSETS AND
ASSETS
The accompanying Notes to the Financial Statements are an integral part of this Statement.
21
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22
TOWNSHIP OF LITTLE EGG HARBOR
COUNTY OF OCEAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
************
23
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24
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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, 2018
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, 2018
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, 2018
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, 2018
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 adopts 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 their
financial statements in accordance with GAAP and thus do not comply with all of the GASB
pronouncements. The following GASB pronouncement effective for the current year did have a
significant impact on the Township’s financial statements.
Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than
Pensions. This Statement replaces the requirements of Statement No. 45, Accounting and Financial
Reporting by Employers for Post- employment Benefits Other Than Pensions, as amended, and No. 57,
OPEB Measurements by Agency Employers and Agent Multi-Employer Plans, for OPEB. Statement No.
74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new
accounting and financial reporting requirements for OPEB Plans.
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
29
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 2. Deposits and Investments (continued):
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
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, 2018, the Township’s bank balance of $15,602,893.15 was insured or collateralized
as follows:
Insured under FDIC and GUDPA
9,824,442.00
$
Uninsured and Uncollateralized
5,778,451.15
15,602,893.15
$
Investments
The Township had no investments as of December 31, 2018.
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.
2018
2017
2016
Tax Rate
2.335
$
2.300
$
2.319
$
Apportionment of Tax Rate:
Municipal
0.674
0.657
0.661
County General
0.418
0.423
0.430
Local School
0.585
0.575
0.571
Regional School
0.658
0.645
0.657
Comparison Schedule of Tax Rates
Year
Amount
2018
2,317,505,931.00
$
2017
2,287,472,584.00
2016
2,240,445,490.00
Assessed Valuation
30
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 3. Property Taxes (continued):
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2018
56,311,740.99
$
56,050,262.72
$
99.53%
2017
55,027,332.99
54,748,254.82
99.49%
2016
54,442,150.23
54,217,629.37
99.58%
Comparison of Tax Levies and Collections
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2018
812,765.26
$
76,581.35
$
889,346.61
$
1.58%
2017
647,630.63
63,632.17
711,262.80
1.29%
2016
612,368.40
79,043.96
691,412.36
1.27%
Delinquent Taxes and Tax Title Liens
Year
Number
2018
190
2017
135
2016
135
Number of Tax Title Liens
The last tax sale was held on December 19, 2018.
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
2018
5,757,700.00
$
2017
5,757,700.00
2016
5,757,700.00
31
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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:
2018
3,884,588.26
$
2,850,000.00
$
73.37%
2017
4,796,809.20
2,850,000.00
59.41%
2016
4,595,680.34
2,850,000.00
62.01%
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, 2018:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
134,116.94
$
782.00
$
State and Federal Grant Fund
782.00
-
Trust Other Fund
-
486,303.22
General Capital Fund
480,000.00
-
Payroll Fund
-
127,813.72
614,898.94
$
614,898.94
$
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
863,450.78
$
1,233,127.00
$
State and Federal Grant Fund
473,814.63
696,424.12
Trust Other Fund
-
49,161.21
Capital Fund
743,524.00
-
Payroll Fund
460,316.51
562,393.59
2,541,105.92
$
2,541,105.92
$
32
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 7. Interfund Receivables, Payables and Transfers (continued):
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to
other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no
bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted
revenue in another.
Note 8. Fixed Assets
The following is a summary of changes in the General Fixed Assets Account Group for the year ended
December 31, 2018.
Balance
Balance
December 31,
December 31,
2017
Additions
Deletions
2018
Land and Improvements
7,789,600.00
$
-
$
-
$
7,789,600.00
$
Buildings
10,473,776.00
215,550.56
-
10,689,326.56
Machinery & Equipment
11,877,971.97
53,624.50
(214,195.00)
11,717,401.47
30,141,347.97
$
269,175.06
$
(214,195.00)
$
30,196,328.03
$
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
33
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
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.
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
2018, 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, 2018, the Township’s contractually required contribution to PERS plan was $501,181.
Components of Net Pension Liability - At December 31, 2018, the Township’s proportionate share of
the PERS net pension liability was $9,920,813. The net pension liability was measured as of June 30,
2018. 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, 2017, which
was rolled forward to June 30, 2018. 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, 2018. The Township’s proportion measured as of June 30, 2018,
was 0.05039% which was an increase of 0.00246% from its proportion measured as of June 30, 2017.
34
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
12/31/2018
12/30/2017
Actuarial valuation date (including roll forward)
June 30, 2018
June 30, 2017
Deferred Outflows of Resources
2,532,826
$
2,987,085
$
Deferred Inflows of Resources
3,673,265
2,698,454
Net Pension Liability
9,920,813
11,154,416
Township's portion of the Plan's total net pension Liability
0.05039%
0.04792%
Collective Balances at December 31, 2018 and December 31, 2017
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2018, the
Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2018
measurement date is $734,632. 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
$501,181 to the plan in 2018.
At December 31, 2018, 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
189,191
$
51,155
$
Changes of Assumptions
1,634,789
3,172,149
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
93,058
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
708,846
356,903
2,532,826
$
3,673,265
$
The Township will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
35
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
5.63
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
June 30, 2015
5.72
5.72
June 30, 2016
5.57
5.57
June 30, 2017
5.48
5.48
June 30, 2018
5.63
5.63
36
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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
2019
51,512
$
2020
(44,954)
2021
(386,111)
2022
(647,371)
2023
(113,515)
(1,140,439)
$
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
37
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
base year of 2012 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, 2017 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, 2018) 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, 2018 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
5.00%
5.51%
Cash Equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment Grade Credit
10.00%
3.78%
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, 2018
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Discount Rate - The discount rate used to measure the total pension liability was 5.66% as of June 30,
2018. 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 3.87% as of June 30, 2018 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 50% 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 2046. Therefore, the long-term expected rate of return on plan
investments was applied to projected benefit payments through 2046 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 (4.66%) or 1-percentage-point higher (6.66%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(4.66%)
(5.66%)
(6.66%)
Township's Proportionate Share
of the Net Pension Liability
12,474,280
$
9,920,813
$
7,778,618
$
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, 2018
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 2018, 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, 2018, the Township’s contractually required contributions to PFRS plan
was $1,255,309.
The employee contributions for PFRS are 10.00% of employees’ annual compensation, as defined.
Net Pension Liability and Pension Expense - At December 31, 2018 the Township’s proportionate
share of the PFRS net pension liability was $17,374,773. The net pension liability was measured as of
June 30, 2018. 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, 2017,
to the measurement date of June 30, 2018. 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, 2018. The Township’s proportion measured as of
June 30, 2018, was 0.12840%, which was a decrease of 0.00294% from its proportion measured as of
June 30, 2017.
40
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
Collective Balances at December 31, 2018 and Decmber 31, 2017
12/31/2018
12/31/2017
Actuarial valuation date (including roll forward)
June 30, 2018
June 30, 2017
Deferred Outflows of Resources
2,715,963
$
4,545,177
$
Deferred Inflows of Resources
5,186,915
3,696,307
Net Pension Liability
17,374,773
20,276,143
Township's portion of the Plan's total net pension Liability
0.12840%
0.13134%
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2018, the
Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2018
measurement date was $1,674,572. 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 $1,255,309 to the plan in 2018.
At December 31, 2018, 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
176,766
$
71,901
$
Changes of Assumptions
1,491,390
4,452,854
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
95,056
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
1,047,807
567,104
2,715,963
$
5,186,915
$
The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
41
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
-
5.53
June 30, 2016
-
5.58
June 30, 2017
5.59
-
June 30, 2018
5.73
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.17
6.17
June 30, 2015
5.53
5.53
June 30, 2016
5.58
5.58
June 30, 2017
5.59
5.59
June 30, 2018
5.73
5.73
42
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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
2019
656,414
$
2020
(188,937)
2021
(1,120,815)
2022
(1,450,036)
2023
(367,576)
(2,470,950)
$
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 $2,360,076 as of December 31, 2018. The net pension liability was measured as of June 30,
2018. 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, 2017, to the
measurement date of June 30, 2018. 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, 2018 was 0.12840%, which was a decrease of 0.00294% from
its proportion measured as of June 30, 2017, which is the same proportion as the Township’s. At
December 31, 2018, 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
17,374,773
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Township
2,360,076
19,734,849
$
43
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
At December 31, 2018, the State’s proportionate share of the PFRS expense, associated with the
Township, calculated by the plan as of the June 30, 2018 measurement date was $279,547.
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 2012 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 2012 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, 2017 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, 2018) 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, 2018
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, 2018 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
5.00%
5.51%
Cash Equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment Grade Credit
10.00%
3.78%
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 6.51% as of June 30,
2018. 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 3.87% as of June 30, 2018 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, 2018
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 (5.51%) or 1-percentage-point higher (7.51%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.51%)
(6.51%)
(7.51%)
Township's Proportionate Share
of the Net Pension Liability
23,253,978
$
17,374,773
$
12,491,586
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Township
3,158,669
2,360,076
1,696,776
26,412,647
$
19,734,849
$
14,188,362
$
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, 2018
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:
2018
2017
2016
Issued:
General:
Bonds, Notes and Loans
22,694,355.25
$
13,667,554.31
$
15,076,157.57
$
Total Debt Issued
22,694,355.25
13,667,554.31
15,076,157.57
Authorized but not issued:
General:
Bonds, Notes and Loans
6,551,452.00
8,271,629.00
6,651,879.00
Total Authorized But Not Issued
6,551,452.00
8,271,629.00
6,651,879.00
Total Gross Debt
29,245,807.25
$
21,939,183.31
$
21,728,036.57
$
Deductions:
General:
Funds on Hand For Payment
of Bonds and Notes:
Reserve for Debt Service
1,437,831.27
-
-
Total Deductions
1,437,831.27
-
-
Total Net Debt
27,807,975.98
$
21,939,183.31
$
21,728,036.57
$
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
26,454,550.00
$
26,454,550.00
$
-
$
Regional School Debt
42,906,150.96
42,906,150.96
-
General Debt
29,245,807.25
1,437,831.27
27,807,975.98
98,606,508.21
$
70,798,532.23
$
27,807,975.98
$
Net Debt $27,807,975.98 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as
amended, $2,336,053,164.00, equals 1.190%. 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, 2018 is calculated as follows:
47
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 10. Municipal Debt (continued):
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
81,761,860.74
$
Net Debt
27,807,975.98
Remaining Borrowing Power
53,953,884.76
$
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
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
1,060,000.00 85,525.00 1,145,525.00
2024-2027 2,200,000.00 132,000.00 2,332,000.00
7,750,000.00
$
869,375.00
$
8,619,375.00
$
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, 2018:
48
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 10. Municipal Debt (continued):
Balance
Date of
Date of
December 31,
Description
Issue
Maturity
Rate
2018
Series 2018 B
2/2/2018
2/1/2019
1.246%
1,169,000.00
$
Series 2018 A
2/2/2018
2/1/2019
2.500%
7,851,000.00
Series 2018 C
11/20/2018
8/20/2019
2.250%
1,500,000.00
10,520,000.00
$
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, 2018, the Township had $6,551,452.00 in various General Capital bonds and notes
authorized but not issued.
D. Loans Payable
As of December 31, 2018, the Township had $374,026.25 in Green Trust Loans Payable outstanding.
Principal and interest due on the loans payable are as follows:
Year
Principal
Interest
Total
2019
$ 70,925.08 $ 7,127.71 78,052.79
2020
72,351.78 5,702.00 78,053.78
2021
73,805.56 4,248.23 78,053.79
2022
59,743.12 2,763.86 62,506.98
2023
29,293.06 1,797.74 31,090.80
2024-2026 67,907.65 2,047.75 69,955.40
374,026.25
$
23,687.29
$
397,713.54
$
E. NJEIT Loans Payable
As of December 31, 2018, the Township had $4,050,329.00 in NJEIT Loans Payable outstanding. The
loan proceeds are being utilized for the Twin Lakes Boulevard Drainage Project. As of the date of this
audit report, the loan agreement has not been finalized and no amortization schedule is available.
49
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 10. Municipal Debt (continued):
Summary of Principal Debt
A summary of the changes in long-term and short-term debt of the Township is as follows:
Balance
Balance
Balance
December 31,
Accrued/
Retired/
December 31,
Due Within
2017
Increases
Decreases
2018
One Year
General Capital:
General Bonds
8,870,000.00
$
-
$
1,120,000.00
$
7,750,000.00
$
1,170,000.00
$
Bond Anticipation Notes
4,354,000.00
10,520,000.00
4,354,000.00
10,520,000.00
10,520,000.00
Green Trust Loans
443,554.31
-
69,528.06
374,026.25
70,925.08
NJEIT Loan Payable
-
4,050,329.00
-
4,050,329.00
-
13,667,554.31
$
14,570,329.00
$
5,543,528.06
$
22,694,355.25
$
11,760,925.08
$
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
2018
2017
Total Balance of Local Tax
6,440,929.46
$
6,269,633.00
$
Deferred Taxes
5,236,297.00
5,236,297.00
Local Tax Payable
1,204,632.46
$
1,033,336.00
$
Balance, December 31,
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.
50
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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 $2,473,104.04 at December 31,
2018.
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, 2018, the Township has reserved in the
Other Trust Fund $50,127.87 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, 2018 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.
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, 2018.
Note 15. Other Postemployment Benefits
General Information about the OPEB Plan
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple-
employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It
covers employees of local government employers that have adopted a resolution to participate in the Plan.
For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be
found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
51
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 15. Other Postemployment Benefits (continued):
The Plan provides medical and prescription drug to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally
administered retirement system and a period of service of up to 25 years with the employer at the time of
retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of
service with the employer. Further, the law provides that the employer paid obligations for retiree
coverage may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides
medical and prescription coverage to local police officers and firefighters, who retire with 25 years of
service or on a disability from an employer who does not provide postretirement medical coverage. Local
employers were required to file a resolution with the Division in order for their employees to qualify for
State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree
health benefits to survivors of local police officers and firefighters who die in the line of duty under
Chapter 271, P.L.1989.
Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have
less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost
of their health care coverage in retirement provided they retire with 25 or more years of pension service
credit. The percentage of the premium for which the retiree will be responsible will be determined based
on the retiree’s annual retirement benefit and level of coverage.
Basis of Presentation
The schedule of employer and nonemployer allocations and the schedule of OPEB amounts by employer
and nonemployer (collectively, the Schedules) present amounts that are considered elements of the
financial statements of its participating employers or the State as a nonemployer contributing entity.
Accordingly, they do not purport to be a complete presentation of the financial position or changes in
financial position of the participating employers or the State. The accompanying Schedules were prepared
in accordance with U.S. generally accepted accounting principles. Such preparation requires management
of the Plan to make a number of estimates and assumptions relating to the reported amounts. Due to the
inherent nature of these estimates, actual results could differ from those estimates.
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate
share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred
inflows of resources, and collective OPEB expense. The special funding situation’s and nonspecial
funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and
OPEB expense are based on separately calculated total OPEB liabilities. For the special funding situation
and the nonspecial funding situation, the total OPEB liabilities for the year ended June 30, 2018 were
52
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 15. Other Postemployment Benefits (continued):
$6,338,578,586 and $9,642,524,641, respectively. The nonspecial funding situation’s net OPEB liability,
deferred outflows of resources, deferred inflows of resources, and OPEB expense are further allocated to
employers based on the ratio of the plan members of an individual employer to the total members of the
Plan’s nonspecial funding situation during the measurement period July 1, 2017 through June 30, 2018.
Employer and nonemployer allocation percentages have been rounded for presentation purposes;
therefore, amounts presented in the schedule of OPEB amounts by employer and nonemployer may result
in immaterial differences.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local
police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for
the category of coverage elected by the qualified retiree under the State managed care plan or a health
maintenance organization participating in the program providing the lowest premium or periodic charge.
The State also provides funding for retiree health benefits to survivors of local police officers and
firefighters who die in the line of duty under Chapter 271, P.L.1989.
Therefore, these employers are considered to be in a special funding situation as defined by GASB
Statement No. 75 and the State is treated as a nonemployer contributing entity. Since the local
participating employers do not contribute under this legislation directly to the plan, there is no net OPEB
liability, deferred outflows of resources or deferred inflows of resources to report in the financial
statements of the local participating employers related to this legislation. However, the notes to the
financial statements of the local participating employers must disclose the portion of the nonemployer
contributing entities’ total proportionate share of the collective net OPEB liability that is associated with
the local participating employer.
The participating employer allocations included in the supplemental schedule of employer special funding
allocations and the supplemental schedule of special funding amounts by employer for each employer are
provided as each employer is required to record in their financial statements, as an expense and
corresponding revenue, their proportionate share of the OPEB expense allocated to the State of New
Jersey under the special funding situation and include their proportionate share of the collective net OPEB
liability in their respective notes to their financial statements. For this purpose, the proportionate share
was developed based on eligible plan members subject to the special funding situation. This data takes
into account active members from both participating and non-participating employer locations and retired
members currently receiving OPEB benefits.
Additionally, the State’s proportionate share of the OPEB liability attributable to the Township is
$9,840,306.00 as of December 31, 2018. The OPEB liability was measured as of June 30, 2018. The total
OPEB liability used to calculate the OPEB liability was determined using update procedures to roll
forward the total OPEB liability from an actuarial valuation as of July 1, 2017, to the measurement date
of June 30, 2018. The State’s proportion of the OPEB liability associated with the Township was based
on a projection of the Township’s long-term share of contributions to the OPEB plan relative to the
projected contributions of all participating members, actuarially determined. The State’s proportion
measured as of June 30, 2018 was 0.158361%, which was an increase of 0.014657% from its proportion
measured as of June 30, 2017, which is the same proportion as the Township’s. At December 31, 2018,
the Township’s and the State of New Jersey’s proportionate share of the OPEB liability were as follows:
53
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 15. Other Postemployment Benefits (continued):
State of New Jersey's
Proportionate Share of OPEB Liability
Associated with the Township
9,840,306.00
$
At December 31, 2018, the State’s proportionate share of the OPEB expense, associated with the
Township, calculated by the plan as of the June 30, 2018 measurement date was $297,878.00.
Note 16. Postemployment Benefits Other Than Pensions
General Information about the OPEB Plan
The financial statements of the Township are not prepared in accordance with Governmental Accounting
Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment
Benefits Other than Pensions. The following information is provided in accordance with the requirements
of the Statement and has been implemented prospectively.
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.
Employees and Retirees Covered – At December 31, 2018, the following employees were covered by
the Township plan:
Amount
116
36
152
Total Membership Count
Participant Data
Active Employees
Retired Employees
54
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 16. Postemployment Benefits Other Than Pensions (continued):
Actuarial Assumptions and Other Inputs
This valuation has been conducted as of December 31, 2018 based on census, plan design and premium
information provided by the Township. Census includes 36 retired participants (including spouses) and
116 active participants. The Measurement Date, for each fiscal year is as of the end of the prior year.
Thus, the Total OPEB Liability for fiscal year ending December 31, 2018 of $22,979,322 is measured at
December 31, 2017 as allowed under GASB 75.
The values are determined in accordance with GASB 75 including the Individual Entry Age Normal Cost
method with the normal cost determined as a percentage of pay. Standard roll forward and backward
techniques were used to adjust valuation dates to measurement dates. The following assumptions and
other inputs applied to all periods in the measurement, unless otherwise specified:
Salary Increases
Health Care Cost Trend
Rates of Retirement
Rates start at age 55 & 10 yearrs or 20 years
Rates of Disability
Retiree Participation
Investment Rate of Return
Asset Valuation Method
Discount Rate
Actuarial Cost Method
Rates of Mortality
Inflation Rate
8% decr to 5% ultimate
Entry Age Normal
3.64% as of 12/31/18.
Based on S&P Municpal Bond 20 year High Grade Bond Index Rate of
3.00%
Market
None assumed
100% of eligible retirees are assumed to elect to participate in the plan
3.00%
RP 2014 w/ MP2016 projection
3.64%
Discount Rate – The discount rate is the single rate that reflects (1) the long-term expected rate of return
on the OPEB plan investments that are expected to be used to finance the payments of benefits, to the
extent that the OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit
payments and OPEB plan assets are expected to be invested using a strategy to achieve that return and (2)
a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of
Aa, to the extent that the conditions for use of the long-term expected rate of return are not met. For the
total OPEB liability calculation as of December 31, 2018, the discount rate utilized was 3.64%.
55
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 16. Postemployment Benefits Other Than Pensions (continued):
Changes in the Total OPEB Liability – The changes to the total OPEB Liability during the year ending
December 31, 2018 were as follows:
Total OPEB Liability
Balance, January 1, 2018
Changes for the Year:
Service Cost
Interest Cost
Changes of Assumptions
Difference between Actual and Expected
Benefits Paid (implicit)
Net Changes
Balance, December 31, 2018
383,136
22,979,322
$
504,373
802,997
-
147,410
(1,071,644)
22,596,186
$
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Township, as well as what the Township’s total
OPEB liability would be, if it were calculated using a discount rate that is 1-percentage-point lower (2.64
percent) or 1-percentage pointer higher (4.64 percent) that the current discount rate:
Total OPEB Liability
$ 24,903,208
$ 22,979,322
$ 21,055,436
At 1%
At Discount
At 1%
December 31, 2018
Decrease (2.64%)
Rate (3.64%)
Increase (4.64%)
The following presents the total OPEB liability of the Township, as well as what the Township’s total
OPEB liability would be, if it were calculated using a healthcare cost trend rate that is 1-percentage-point
lower or 1-percentage pointer higher that the current healthcare cost trend rate:
Total OPEB Liability
December 31, 2018
Healthcare Cost
1% Decrease
Trend Rate*
1% Increase
$ 20,777,226
$ 22,979,322
$ 25,586,176
* See Healthcare Cost Trend Assumptions for details of rates.
56
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 16. Postemployment Benefits Other Than Pensions (continued):
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2018, the Township’s OPEB expense was estimated to be $1,322,111.
At December 31, 2018, the Township reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between Expected and
Actual Experience
132,669
$
-
$
Changes of Assumptions or other inputs
-
-
Total
-
$
-
$
Amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense
as follows:
14,741
Year Ending
December 31,
132,669
$
14,741
2021
2019
2022
14,741
Thereafter
58,964
14,741
$
2020
14,741
2022
Other Supplementary Information
Schedule of Changes in the Township's Total OPEB Liability and Related Ratios
2018
2017
2016
Service Cost
504,373
$
N/A
N/A
Interest Cost
802,997
Changes of Assumptions
-
Difference between Actual and Expected
147,410
Benefits Paid (implicit)
(1,071,644)
Net Change in Total OPEB Liability
383,136
Total OPEB Liability (Beginning)
22,596,186
Total OPEB Liability (Ending)
22,979,322
$
Total Covered Employee Payroll
10,309,945
Net OPEB Liability as a Percentage of Payroll
223%
Fiscal Year Ending December 31,
57
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
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, 2018 the Current Fund has
recorded a loan payable in the amount of $4,250,000.00 with $125,025.68 of accrued interest. The loan
originally came to maturity on May 1, 2018, but has since been extended to April 16, 2023.
Note 18. Subsequent Events
Management has reviewed and evaluated all events and transactions that occurred between December 31,
2018 and August 5, 2019, the date that the financial statements were available for issuance, for possible
disclosure and recognition in the financial statements. No items have come to the attention of the
Township that would require disclosure.
58
SUPPLEMENTARY EXHIBITS
59
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60
CURRENT FUND
61
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62
EXHIBIT A-4
Balance December 31, 2017
9,887,440.97
$
977,541.95
$
Increased by Receipts:
Taxes Receivable
53,884,539.22
$
-
$
Tax Title Liens Receivable
54,891.67
-
Due From State - Senior Citizen &
-
Veteran Deductions
317,735.60
-
Revenue Accounts Receivable
3,072,970.34
-
Miscellaneous Revenue Not Anticipated
749,123.56
-
Prepaid Taxes
679,278.79
-
Refunds of Current Year Appropriations
584,152.25
-
Due Bass River
2,171.80
-
Construction Fees Due State of
-
New Jersey
27,066.00
-
Reserve for Commercial Mercantile License
2,700.00
-
Reserve for Debt Service - Green Trust
7,772.89
-
Transferred from Current Fund
-
473,814.63
Transferred from Trust Funds
49,161.21
Due from State & Federal Grant Fund
251,895.98
-
Federal & State Grants Unappropriated
-
9,855.25
Federal & State Grants Receivable
-
544,013.87
Total Receipts
59,683,459.31
1,027,683.75
Subtotal
69,570,900.28
2,005,225.70
Decreased by Disbursements:
2018 Appropriations
21,191,778.97
-
Appropriation Reserves
773,654.15
-
County Taxes Payable
9,661,855.17
-
Due County for Added & Omitted Taxes
128,995.83
-
Local District School Tax
13,381,885.54
-
Regional High School Tax
15,539,853.29
-
Special District Taxes
1,720,133.00
-
Construction Fees Due State of NJ
19,405.00
-
Refund Tax Overpayments
86,396.10
-
Bass River Construction Fees
979.00
-
Reserve for Closed Escrow
238.08
-
Reserve for FEMA Reimbursements
46,277.22
-
Due from State & Federal Grant Fund
473,814.63
-
Due from Current Fund
-
251,895.98
Due to Capital Fund
298,995.86
444,528.14
Federal & State Grants - Appropriated
-
924,731.11
Total Disbursements
63,324,261.84
1,621,155.23
Balance December 31, 2018
6,246,638.44
$
384,070.47
$
CURRENT FUND
GRANT FUND
STATE & FEDERAL
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2018
63
EXHIBIT A-5
BALANCE
SENIOR
TRANSFERRED
BALANCE
DECEMBER 31,
2018
ADDED
CITIZENS &
OVERPAYMENT
OVERPAYMENT
TO TAX
DECEMBER 31,
YEAR
2017
LEVY
TAXES
2017
2018
VETERANS
APPLIED
CREATED
CANCELED
TITLE LIENS
2018
2009
1,625.85
$
-
$
-
$
-
$
-
$
-
$
177.19
$
177.19
$
-
$
1,621.20
$
4.65
$
2010
1,760.61
-
-
-
-
-
177.19
177.19
-
1,755.60
5.01
2011
1,802.76
-
-
-
-
-
177.19
177.19
-
1,797.60
5.16
2012
3,124.73
-
-
-
-
-
177.19
4,296.27
4,119.08
1,872.15
1,252.58
2013
4,458.05
-
-
-
-
-
4,296.27
11,795.80
7,499.53
1,945.65
2,512.40
2014
5,626.29
-
-
-
-
-
11,987.80
20,848.38
8,860.58
2,008.65
3,617.64
2015
7,044.23
-
-
-
-
-
22,081.33
25,637.01
3,555.71
1,688.46
5,355.74
2016
17,440.27
-
-
-
-
-
24,404.06
39,585.20
14,499.29
1,668.92
16,453.20
2017
20,749.38
-
-
-
7,317.27
(5,633.56)
151,871.88
169,786.60
16,691.42
1,658.45
18,630.52
Total
63,632.17
-
-
-
7,317.27
(5,633.56)
215,350.10
272,480.83
55,225.61
16,016.68
47,836.90
2018
-
55,810,723.45
501,017.54
1,765,588.34
53,877,221.95
311,748.62
159,661.71
63,957.90
101,745.89
130,987.93
28,744.45
Total
63,632.17
$
55,810,723.45
$
501,017.54
$
1,765,588.34
$
53,884,539.22
$
306,115.06
$
375,011.81
$
336,438.73
$
156,971.50
$
147,004.61
$
76,581.35
$
Tax Yield:
General Property Tax
54,132,070.45
$
Special District
1,678,653.00
Added Taxes (54:4-63.1 et. seq.)
501,017.54
56,311,740.99
$
Total Tax Yield
56,311,740.99
$
Tax Levy:
Local School District Tax (Abstract)
13,553,182.00
$
Regional High School Tax (Abstract)
15,250,618.00
Municipal Open Space (Abstract)
23,175.08
Municipal Open Space (Added)
202.62
County Taxes:
County Tax (Abstract)
8,166,783.00
$
County Library Tax (Abstract)
891,032.31
County Health Services (Abstract)
321,746.47
County Open Space
282,293.52
Due County for Added Taxes (54:4-63,1 et.seq.)
84,984.54
Total County Taxes
9,746,839.84
Fire District #1 (Amount Certified)
612,967.00
$
Fire District #2 (Amount Certified)
619,686.00
Fire District #3 (Amount Certified)
446,000.00
Total Special District Taxes
1,678,653.00
Local Tax for Municipal Purposes
15,604,864.10
$
Add: Additional Tax Levied
454,206.35
16,059,070.45
Total Tax Levy
56,311,740.99
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
COLLECTED
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
ANALYSIS OF 2018 PROPERTY TAX LEVY:
64
EXHIBIT A-6
Balance December 31, 2017
647,630.63
$
Increased by:
Transfers from Taxes Receivable
147,004.61
$
Adjustment
73,021.69
220,026.30
Subtotal
867,656.93
Decreased by:
Collections
54,891.67
Balance December 31, 2018
812,765.26
$
EXHIBIT A-7
Balance December 31, 2018 and 2017
5,757,700
$
SCHEDULE OF PROPERTY ACQUIRED FOR TAXES
(AT ASSESSED VALUATION)
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF TAX TITLE LIENS
65
EXHIBIT A-8
BALANCE
BALANCE
DECEMBER 31,
ACCRUED IN
DECEMBER 31,
2017
2018
TREASURER
2018
Miscellaneous Revenue Anticipated:
Licenses - Alcoholic Beverages
-
$
10,814.00
$
10,814.00
$
-
$
Fees & Permits
-
231,427.58
231,427.58
-
Municipal Court
14,024.06
203,315.20
204,813.30
12,525.96
Interest & Costs on Taxes
-
106,341.09
106,341.09
-
Payments in Lieu of Taxes
-
68,634.41
68,634.41
-
Energy Receipts Tax
-
1,299,939.00
1,299,939.00
-
Garden State Trust
-
149,117.00
149,117.00
-
Uniform Construction Code Fees
-
466,503.70
466,503.70
-
Tower Rental
-
204,402.73
204,402.73
-
SRO Officer
-
231,479.24
231,479.24
-
Cable TV
-
99,498.29
99,498.29
-
Total
14,024.06
$
3,071,472.24
$
3,072,970.34
$
12,525.96
$
TOWNSHIP OF LITTLE EGG HARBOR
FOR THE YEAR ENDED DECEMBER 31, 2018
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
CURRENT FUND
66
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2017
TRANSFERS
CHARGED
LAPSED
OVEREXPENDED
General Government:
General Administration:
Salaries and Wages
15,328.60
$
15,328.60
$
-
$
15,328.60
$
-
$
Other Expenses
13,460.00
13,460.00
-
13,460.00
-
Mayor and Committee:
Salaries and Wages
82.13
82.13
-
82.13
-
Other Expenses
3,371.85
3,371.85
-
3,371.85
-
Municipal Clerk:
Salaries and Wages
13,148.08
13,148.08
-
13,148.08
-
Other Expenses
223.60
729.16
723.33
5.83
-
Financial Administration (Treasury):
Salaries and Wages
1,963.00
1,963.00
-
1,963.00
-
Other Expenses
7,803.60
8,042.97
5,332.17
2,710.80
-
Audit Services:
Other Expenses
32,339.00
32,339.00
32,339.00
-
-
Revenue Administration (Tax Collection):
Salaries and Wages
3,966.97
3,966.97
-
3,966.97
-
Other Expenses:
Tax Sale Costs
4,386.38
4,491.58
185.20
4,306.38
-
Miscellaneous Other Expenses
6,860.94
10,539.39
3,740.79
6,798.60
-
Tax Assessment Administration:
Salaries and Wages
2,387.69
2,387.69
-
2,387.69
-
Other Expenses
4,767.11
4,767.11
7.50
4,759.61
-
Liquidation of Tax Title Liens & Foreclosed:
Property- Other Expenses
5,000.00
5,000.00
-
5,000.00
-
Legal Services (Legal Department):
Other Expenses
23,664.79
23,664.79
23,664.79
-
-
Engineering Services:
Other Expenses
17,147.86
17,147.86
17,147.86
-
-
Economic Development Agencies:
Salaries and Wages
1,200.00
1,200.00
-
1,200.00
-
Other Expenses
2,600.00
2,600.00
-
2,600.00
-
Land Use Administration:
Planning Board:
Salaries and Wages
600.00
600.00
-
600.00
-
Other Expenses
8,041.00
8,041.00
-
8,041.00
-
Zoning Board of Adjustment:
Salaries and Wages
500.00
500.00
-
500.00
-
Other Expenses
860.58
860.58
775.50
85.08
-
Zoning Officer:
Salaries and Wages
39.89
39.89
-
39.89
-
Other Expenses
2,726.81
2,886.81
160.00
2,726.81
-
Insurance:
Liability Insurance
2,329.22
2,329.22
-
2,329.22
-
Unemployment Insurance
2,770.32
2,770.32
-
2,770.32
-
Health Benefit Waiver
277.84
277.84
-
277.84
-
Group Insurance for Employees
4,913.65
4,913.65
254,450.24
-
249,536.59
Public Safety Functions:
Police Department:
Salaries and Wages
327,523.50
327,523.50
51,076.44
276,447.06
-
Other Expenses
17,062.65
30,503.50
26,376.62
4,126.88
-
Office of Emergency Management:
Other Expenses
80.00
80.00
-
80.00
-
First Aid Squad Contribution
70,000.00
70,000.00
70,000.00
-
-
Municipal Prosecutor:
Other Expenses
10,750.00
10,750.00
4,500.00
6,250.00
-
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
2,365.60
2,365.60
-
2,365.60
-
Other Expenses
26,603.78
30,481.53
8,806.07
21,675.46
-
Solid Waste Sanitation:
Salaries and Wages
6,888.49
6,888.49
-
6,888.49
-
Other Expenses
48,364.68
56,140.89
15,962.36
40,178.53
-
Bulk Property Maintenance Pick-Up
22,000.00
22,000.00
-
22,000.00
-
Solid Waste Recycling:
Salaries and Wages
220.86
220.86
-
220.86
-
Other Expenses
1,913.34
2,001.42
268.03
1,733.39
-
Buildings & Grounds:
Salaries and Wages
5,948.07
5,948.07
-
5,948.07
-
Other Expenses
27,491.98
35,565.06
16,167.31
19,397.75
-
Vehicle Maintenance:
Other Expenses
17,915.65
21,532.71
15,351.81
6,180.90
-
Salaries and Wages
2,082.54
2,082.54
-
2,082.54
-
Municipal Services Act:
Other Expenses
56,585.88
56,585.88
18,433.91
38,151.97
-
County Mosquito Control Agency:
Other Expenses
51,362.06
51,362.06
-
51,362.06
-
Salaries and Wages
1,742.91
1,742.91
-
1,742.91
-
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2018
67
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2017
TRANSFERS
CHARGED
LAPSED
OVEREXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2018
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
7,255.00
7,255.00
-
7,255.00
-
Other Expenses
4,293.80
4,493.80
1,000.00
3,493.80
-
Environmental Health Services:
Salaries and Wages
500.00
500.00
-
500.00
-
Animal Control Services:
Other Expenses
15,193.00
15,193.00
1,049.00
14,144.00
-
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
-
Park & Recreation Functions:
Recreation Services & Programs:
Salaries and Wages
4,125.91
4,125.91
-
4,125.91
-
Other Expenses
4,295.01
4,628.68
1,602.54
3,026.14
-
Senior Center/Community Activities:
Salaries and Wages
400.00
400.00
-
400.00
-
Other Expenses
-
-
-
-
-
Utility Expenses & Bulk Purchases:
Electricity
27,148.78
27,148.78
8,656.90
18,491.88
-
Street Lighting
29,890.24
29,890.24
29,890.24
-
-
Telephone
27,517.90
28,895.90
28,895.90
-
-
Gasoline
11,777.98
21,460.18
21,232.66
227.52
-
Natural Gas
13,910.93
13,910.93
11,371.88
2,539.05
-
Uniform Construction Code Enforcement Functions:
Construction Code Official:
Salaries and Wages
38,751.37
38,751.37
-
38,751.37
-
Other Expenses
7,523.46
7,832.32
308.86
7,523.46
-
Municipal Court:
Salaries and Wages
32,242.96
32,242.96
-
32,242.96
-
Other Expenses
8,081.70
11,208.99
3,803.77
7,405.22
-
Public Defender:
Other Expenses
15,139.50
15,139.50
2,750.00
12,389.50
-
Other Common Operating Functions (Unclassified):
Municipal Alliance Council
0.66
0.66
-
0.66
-
Celebration of Public Events:
Other Expenses
2,000.00
2,000.00
-
2,000.00
-
Relocation Assistance:
Other Expenses
500.00
500.00
-
500.00
-
Schedule "C":
Other Expenses
135,000.00
135,000.00
83,729.21
51,270.79
-
Reserve for Disputed Contracts
13,894.26
13,894.26
13,894.26
-
-
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Social Security System (O.A.S.I.)
12,417.46
12,417.46
-
12,417.46
-
Defined Contributions Retirement Program
1,367.58
1,367.58
152.10
1,215.48
-
Operations Excluded From "CAPS"
Police Dispatch/911:
Salaries and Wages
19,326.65
19,326.65
-
19,326.65
-
Other Expenses
3,036.29
3,135.86
99.57
3,036.29
-
Supplemental Aid to Fire Districts
5,235.00
5,235.00
5,235.00
-
-
Total
1,323,988.34
$
1,380,679.54
$
773,654.15
$
851,075.31
$
249,536.59
$
68
EXHIBIT A-10
Balance December 31, 2017:
School Tax Deferred
5,236,297.00
$
School Tax Payable
1,033,336.00
6,269,633.00
Increased by Levy:
School Year July 1, 2018 - June 30, 2019
13,553,182.00
Subtotal
19,822,815.00
Decreased by:
Payments
13,381,885.54
Subtotal
6,440,929.46
Balance December 31, 2018:
School Tax Deferred
5,236,297.00
School Tax Payable
1,204,632.46
Balance December 31, 2018
6,440,929.46
$
2018 Payments
13,381,885.54
$
Less School Taxes Payable at December 31, 2017
1,033,336.00
Plus School Taxes Payable at December 31, 2018
1,204,632.46
Amount Charged to 2018 Operations
13,553,182.00
$
EXHIBIT A-11
Balance December 31, 2017
185,423.00
$
Increased by:
Levy - Calendar Year 2018
15,250,618.00
Subtotal
15,436,041.00
Decreased by:
Payments
15,539,853.29
Balance December 31, 2018 (Prepaid)
(103,812.29)
$
SCHEDULE OF REGIONAL HIGH SCHOOL TAX PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT TAX
FOR THE YEAR ENDED DECEMBER 31, 2018
ANALYSIS OF AMOUNT CHARGED TO OPERATIONS
69
EXHIBIT A-12
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2017
INCREASED
DECREASED
2018
Reserve for Sandy Insurance Proceeds
2,419.00
$
-
$
-
$
2,419.00
$
Reserve for Closed Escrow Accounts
54,291.00
-
238.08
54,052.92
Reserve for Retail Mercantile Licenses
-
2,700.00
-
2,700.00
Reserve for Debt Service -Green Trust
-
7,772.89
-
7,772.89
Reserve for Reassessment
100,047.00
-
-
100,047.00
156,757.00
$
10,472.89
$
238.08
$
166,991.81
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF VARIOUS RESERVES
8FOR THE YEAR ENDED DECEMBER 31, 2018
70
EXHIBIT A-13
BALANCE
TRANSFERRED
BALANCE
DECEMBER 31,
ANTICIPATED
FROM
DECEMBER 31,
GRANT
2017
REVENUE
RECEIVED
UNAPPROPRIATED
ADJUSTMENT
2018
NJOEM Grant
6,203.35
$
-
$
-
$
-
$
-
$
6,203.35
$
Safe & Secure Communities Program
25,000.00
60,000.00
60,000.00
-
-
25,000.00
CDBG - 2015
19,226.71
-
-
-
-
19,226.71
966 Reimbursement Grant
15,193.42
-
5,817.00
-
-
9,376.42
Recycling Tonnage Grant
-
30,928.89
30,928.89
-
-
-
Neighborhood Community Revitalization Grant
2,464.22
-
-
-
-
2,464.22
Child Restraint Grant
2,500.00
-
-
-
-
2,500.00
NJDOT Municipal Aid Program - 2017
-
200,000.00
200,000.00
-
-
-
NJDOT Municipal Aid Program - 2018
-
350,000.00
-
-
-
350,000.00
NJ Department of Justice Grant
-
1,488.00
-
1,488.00
-
-
Coastal Zone Management
-
2,444.00
-
2,444.00
-
-
National Fish & Wildlife
1,404,454.33
-
196,228.92
-
-
1,208,225.41
Alcohol Education and Rehabilitation Program
782.00
-
-
-
(782.00)
-
Recycling Revenue and Residue
-
10,054.00
-
10,054.00
-
-
Ocean County Recycling Revenue Share
10,053.55
-
-
-
-
10,053.55
Bulletproof Vest Partnership Grant
6,207.81
-
-
-
-
6,207.81
Clean Communities Program
-
51,039.06
51,039.06
-
-
-
Post Sandy Planning Assistance
93,854.18
-
-
-
-
93,854.18
NJDEP Living Shore Grant
400,000.00
-
-
-
-
400,000.00
Total
1,985,939.57
$
705,953.95
$
544,013.87
$
13,986.00
$
(782.00)
$
2,133,111.65
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE
71
EXHIBIT A-14
BALANCE
BALANCE
DECEMBER 31,
2018 BUDGET
ENCUMBRANCES
DECEMBER 31,
APPROPRIATION
2017
APPROPRIATION
RECLASSIFIED
EXPENDED
ADJUSTED
2018
State:
Safe and Secure Communities - 2015
60,000.00
$
-
$
-
$
60,000.00
$
-
$
-
$
Safe and Secure Communities - 2016
60,000.00
-
-
60,000.00
-
-
Safe and Secure Communities - 2017
60,000.00
-
-
60,000.00
-
-
Safe and Secure Communities - 2018
-
60,000.00
-
50,000.00
-
10,000.00
Body Armor Replacement Fund
3,794.30
-
-
3,428.90
(365.40)
-
Alcohol Education & Rehabilitation
1,631.95
-
-
-
-
1,631.95
Safe and Secure Communities
45,000.00
-
-
45,000.00
-
-
NJOEM Grant
20.95
-
-
-
-
20.95
NJ Department of Justice Grant
-
1,488.00
-
-
-
1,488.00
Drunk Driving Enforcement Fund
3,102.91
-
-
2,604.96
-
497.95
Clean Communities Program - Prior
16,885.78
-
-
16,885.78
-
-
Clean Communities Program - 2017
53,425.51
-
-
53,186.45
239.06
Clean Communities Program - 2018
-
51,039.06
-
-
51,039.06
NJDOT Municipal Aid Program - 2014
188,119.25
-
-
-
-
188,119.25
NJDOT Municipal Aid Program - 2017
-
200,000.00
-
200,000.00
-
-
NJDOT Municipal Aid Program - 2018
-
350,000.00
-
-
-
350,000.00
Recycling Tonnage Grant - Prior
10,326.58
-
-
10,326.58
-
-
Recycling Tonnage Grant - 2017
31,060.86
-
-
-
31,060.86
Recycling Tonnage Grant - 2018
-
30,928.59
-
-
-
30,928.59
Recycling Revenue and Residue
25,377.56
-
-
-
-
25,377.56
Child Restraint Grant
2,500.00
-
-
-
-
2,500.00
Safe and Secure Communities
120,000.00
-
-
107,460.00
-
12,540.00
966 Reimbursement
15,217.37
-
-
-
365.40
15,582.77
Coastal Zone Management
153.75
2,444.00
-
-
-
2,597.75
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
-
-
15,930.93
-
48,073.26
NJDEP Living Shoreline
400,000.00
-
-
-
-
400,000.00
Total State
1,177,860.96
695,899.65
-
684,823.60
-
1,188,937.01
Federal:
National Fish & Wildlife
1,439,625.56
-
-
224,794.65
-
1,214,830.91
CDBG 2015
30,493.42
-
-
-
-
30,493.42
National Wildlife Refuge
130.00
-
-
-
-
130.00
CDBG 2014
31,062.15
-
-
-
-
31,062.15
Total Federal
1,501,311.13
-
-
224,794.65
-
1,276,516.48
Local:
Recycling Tonnage Grant - County
13,496.76
-
-
3,080.89
-
10,415.87
Ocean County Recycling Revenue and Residue
9,371.49
-
-
8,932.49
-
439.00
Ocean County Recycling Revenue Sharing - 2015
5,382.42
-
-
5,382.42
-
-
Ocean County Recycling Revenue Sharing - 2017
9,849.02
-
-
-
-
9,849.02
Ocean County Recycling Revenue Sharing - 2018
-
10,054.00
-
-
-
10,054.00
Ocean County Recycling Revenue Sharing
9,614.55
-
-
-
-
9,614.55
Total Local
47,714.24
10,054.00
-
17,395.80
-
40,372.44
Total
2,726,886.33
$
705,953.65
$
-
$
927,014.05
$
-
$
2,505,825.93
$
Cash Disbursements
924,731.11
$
Encumbrances
2,282.94
Total
927,014.05
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS - APPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2018
72
EXHIBIT A-15
TRANSFERRED
BALANCE
TO 2018
BALANCE
DECEMBER 31,
GRANT
DECEMBER 31,
GRANT
2017
APPROPRIATED
RECEIVED
2018
State Grants:
Recycling Revenue - Ocean County
10,054.00
$
10,054.00
$
-
$
-
$
Department of Justice Grant
1,488.00
1,488.00
9,855.25
9,855.25
Coastal Zone Management
2,444.42
2,444.42
-
-
Total Grants
13,986.42
$
13,986.42
$
9,855.25
$
9,855.25
$
SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
FEDERAL AND STATE GRANT FUND
73
This page intentionally left blank
74
TRUST FUND
75
This page intentionally left blank
76
EXHIBIT B-1
Balance December 31, 2017
3,095,391.65
$
54,096.41
$
Increased by Receipts:
Escrow Fees
908,872.04
$
-
$
Open Space
27,155.72
-
Recreation
0.05
-
Forfeited Funds
26,547.15
-
COAH Fees
74,133.43
-
Sick/Vacation Funds
150,000.00
-
Federal Forfeiture
12.61
-
Police K-9 Equipment Donations
1,872.00
-
Police Evidence Deposits
3,352.80
Interfunds Received
930,657.97
-
Interest
-
2,122,603.77
-
Subtotal
5,217,995.42
54,096.41
Decreased by Disbursements:
Escrow Fees
860,736.97
-
Planning Board
52,296.38
-
Open Space
63,859.79
-
COAH Fees
33,175.00
-
Sick/Vacation Funds
146,166.94
-
Federal Forfeiture
1,600.00
-
Police K-9 Equipment Donations
135.92
Forfeited Funds
14,425.30
-
1,172,396.30
-
Balance December 31, 2018
4,045,599.12
$
54,096.41
$
EXHIBIT B-2
Balance December 31, 2017
1,706,969.93
$
Increased by Receipts:
Deposits for Redemption of Tax Sale Certificates
2,882,076.91
Subtotal
4,589,046.84
Decreased by Disbursements:
Refunds - Tax Sale Certificates Redeemed
3,113,787.10
Balance December 31, 2018
1,475,259.74
$
SCHEDULE OF CASH - COLLECTOR - TAX TITLE LIEN REDEMPTION
FOR THE YEAR ENDED DECEMBER 31, 2018
TRUST OTHER
TRUST ASSESSMENT
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2018
77
EXHIBIT B-3
Balance December 31, 2017
-
$
Increased by Receipts:
Dog License Fees
7,429.20
State Dog License Fees
1,489.80
8,919.00
Subtotal
8,919.00
Decreased by Disbursements:
Disbursements to State of New Jersey
1,489.80
Disbursements for Dog License Expenses
7,402.20
8,892.00
Balance December 31, 2018
27.00
$
EXHIBIT B-4
Balance December 31, 2017
-
$
Increased by:
Dog Licenses
8,919.00
Decreased by:
Expenditures
8,892.00
Balance
27.00
$
YEAR
AMOUNT
2017
7,683.00
2016
8,645.40
Total
16,328.40
$
EXHIBIT B-5
Balance December 31, 2017
1,706,969.93
$
Increased by Receipts:
Deposits Received - Collector
2,882,076.91
Subtotal
4,589,046.84
Decreased by Disbursements:
Refunds - Tax Sale Certificates
3,113,787.10
Balance December 31, 2018
1,475,259.74
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - ANIMAL CONTROL
FOR THE YEAR ENDED DECEMBER 31, 2018
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF DEPOSITS FOR REDEMPTION OF TAX SALE CERTIFICATES
SCHEDULE OF RESERVE FOR DOG FUND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2018
LICENSE FEES COLLECTED
78
EXHIBIT B-6
Balance December 31, 2017
1,351,109.86
$
Increased by:
Escrow Deposits Received
908,872.04
Subtotal
2,259,981.90
Decreased by:
Disbursements
860,736.97
Balance December 31, 2018
1,399,244.93
$
EXHIBIT B-7
Balance December 31, 2017
28,798.88
$
Increased by:
Cash Receipts
26,547.15
Subtotal
55,346.03
Decreased by:
Disbursements
14,425.30
Balance December 31, 2018
40,920.73
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR FORFEITED PROPERTY
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF RESERVE FOR ESCROW DEPOSITS
FOR THE YEAR ENDED DECEMBER 31, 2018
79
EXHIBIT B-8
Balance December 31, 2017
80,011.94
$
Decreased by:
Escrow Fees
52,296.38
Balance December 31, 2018
27,715.56
$
EXHIBIT B-9
Balance December 31, 2017
2,057.00
$
Increased by:
Interest Earnings
0.05
Balance December 31, 2018
2,057.05
$
SCHEDULE OF RESERVE FOR RECREATION
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR PLANNING BOARD
FOR THE YEAR ENDED DECEMBER 31, 2018
80
EXHIBIT B-10
Balance December 31, 2017
2,239,689.26
$
Increased by:
Tax Levy - Due from Current Fund
23,376.71
$
Cash Receipts
3,779.01
27,155.72
Subtotal
2,266,844.98
Decreased by:
Disbursements
543,859.79
Balance December 31, 2018
1,722,985.19
$
EXHIBIT B-11
Balance December 31, 2018 and 2017
3,582.88
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR COMMUNITY CENTER
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF RESERVE FOR OPEN SPACE
FOR THE YEAR ENDED DECEMBER 31, 2018
81
EXHIBIT B-12
Balance December 31, 2017
5,853.05
$
Increased by:
Receipts
12.61
Subtotal
5,865.66
Decreased by:
Disbursements
1,600.00
Balance December 31, 2018
4,265.66
$
EXHIBIT B-13
Balance December 31, 2017
46,294.81
$
Increased by:
Receipts
150,000.00
Subtotal
196,294.81
Decreased by:
Disbursements
146,166.94
Balance December 31, 2018
50,127.87
$
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF RESERVE FOR FEDERAL FORFEITURE LAW ENFORCEMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR SICK AND VACATION TIME TRUST FUND
82
EXHIBIT B-14
Balance December 31, 2017
260,600.72
$
Increased by:
Receipts
74,133.43
Subtotal
334,734.15
Decreased by:
Disbursements
33,175.00
Balance December 31, 2018
301,559.15
$
EXHIBIT B-15
Balance December 31, 2018 and 2017
1,100.00
$
FOR THE YEAR ENDED DECEMBER 31, 2018
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, 2018
83
EXHIBIT B-16
Balance December 31, 2017
-
$
Increased by:
Receipts
1,872.00
Subtotal
1,872.00
Decreased by:
Disbursements
135.92
Balance December 31, 2018
1,736.08
$
EXHIIT B-17
Balance December 31, 2017
-
$
Increased by:
Receipts
3,352.80
Balance December 31, 2018
3,352.80
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR POLICE K-9 EQUIPMENT DONATIONS
FOR THE YEAR ENDED DECEMBER 31, 2018
SCHEDULE OF RESERVE FOR POLICE EVIDENCE DEPOSITS
FOR THE YEAR ENDED DECEMBER 31, 2018
84
GENERAL CAPITAL FUND
85
This page intentionally left blank
86
EXHIBIT C-1
Balance December 31, 2018 and 2017
73,777.92
$
EXHIBIT C-2
Balance December 31, 2017
190,867.85
$
Increased by Receipts:
Received from Grant Fund
476,528.14
$
Received from Current Fund
1,298,995.86
Received from NJEIT
1,024,368.00
Grant Receipts
132,178.46
Premiums on BANs
63,987.00
BAN Issued
6,440,000.00
9,436,057.46
Subtotal
9,626,925.31
Decreased by Disbursements:
Improvement Authorizations
5,237,463.21
Transferred to Open Space Fund
1,000,000.00
Transfer to Current Fund
1,000,000.00
7,237,463.21
Balance December 31, 2018
2,389,462.10
$
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF FUND BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2018
87
EXHIBIT C-3
(Page 1 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
2017
NOTES/BONDS
MISCELLANEOUS
AUTHORIZATIONS
MISCELLANEOUS
FROM
TO
2018
Fund Balance
73,777.92
$
-
$
-
$
-
$
-
$
-
$
-
$
73,777.92
$
Due Grant Fund
(444,528.14)
-
476,528.14
-
-
32,000.00
-
-
Capital Improvement Fund
32,394.00
-
100,000.00
-
-
103,850.00
67,500.00
96,044.00
Reserve for Repayment of Debt
-
-
-
-
-
-
780,233.44
780,233.44
Reserve for Debt Service - BAN Premiums
-
-
63,987.00
-
-
-
-
63,987.00
Due Current Fund
(198,995.86)
-
1,198,995.86
-
1,000,000.00
-
-
-
Due Open Space Trust Fund
1,000,000.00
-
-
-
1,000,000.00
480,000.00
-
(480,000.00)
Due to County - CDBG
3,722.00
-
-
-
-
-
-
3,722.00
Excess BAN Funding
657,597.83
657,597.83
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
487,977.22
-
1,839,511.00
-
2,000,000.00
644,588.30
1,505,331.27
1,188,231.19
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2018
DISBURSEMENTS
TRANSFERS
88
EXHIBIT C-3
(Page 2 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
ORDINANCE
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
NUMBER
2017
NOTES/BONDS
MISCELLANEOUS AUTHORIZATIONS MISCELLANEOUS
FROM
TO
2018
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
15,498.00
-
-
10,401.93
-
5,096.07
-
-
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
-
-
(111,471.46)
-
170,498.00
-
-
09-13
Various Capital Improvements
322,878.61
-
-
111,471.46
-
211,407.15
-
-
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
-
-
500.00
-
-
-
423,450.06
14-10
Various Capital Improvements
(669,301.66)
-
-
(142,777.56)
-
-
-
(526,524.10)
16-05
Various Capital Improvements
(832,377.80)
3,320,250.00
-
1,641,088.80
-
132,178.46
-
714,604.94
17-08
Various Capital Improvements
(544,662.08)
1,619,750.00
132,178.46
658,174.37
-
32,000.00
32,000.00
549,092.01
18-08
Twin Lakes Blvd Drainage
-
-
1,024,368.00
2,086,159.95
-
-
-
(1,061,791.95)
18-12
Dredging Osborn Island
-
1,500,000.00
-
787,472.24
-
-
-
712,527.76
18-13
Various General Improvements
-
-
-
193,977.81
-
-
103,850.00
(90,127.81)
18-14
Improvements Veterans Park
-
-
-
-
-
-
480,000.00
480,000.00
Subtotal
(297,109.37)
6,440,000.00
1,156,546.46
5,237,463.21
-
1,476,592.97
615,850.00
1,201,230.91
Total Analysis of Cash
190,867.85
$
6,440,000.00
$
2,996,057.46
$
5,237,463.21
$
2,000,000.00
$
2,121,181.27
$
2,121,181.27
$
2,389,462.10
$
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2018
DISBURSEMENTS
TRANSFERS
TOWNSHIP OF LITTLE EGG HARBOR
89
EXHIBIT C-4
Balance December 31, 2017
9,313,554.31
$
Increased by:
NJEIT Loans issued
4,050,329.00
Subtotal
13,363,883.31
Decreased by:
2018 Budget Appropriation to Pay General Serial Bonds
1,120,000.00
$
Green Trust Loan Bonds
69,528.06
1,189,528.06
Balance December 31, 2018
12,174,355.25
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
FOR THE YEAR ENDED DECEMBER 31, 2018
90
EXHIBIT C-5
BALANCE
BALANCE
UNEXPENDED
BOND
ORDINANCE
DECEMBER 31,
2018
BAN'S
LOANS ISSUED/
CANCELLED
DECEMBER 31,
IMPROVEMENT
EXCESS
ANTICIPATION
NUMBER
IMPROVEMENT DESCRIPTION
2017
AUTHORIZATIONS
PAID
AID RECEIVED
RESOLUTION
2018
AUTHORIZATION
ENCUMBERED
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
29,052.00
-
1,614.00
-
-
27,438.00
-
-
-
-
27,438.00
02-14,36
Construction of Recreation Facilities
39,325.00
-
1,405.00
-
-
37,920.00
-
-
-
-
37,920.00
02-22
Purchase of Street Sweeper
80.00
-
-
-
-
80.00
-
-
80.00
-
-
02-23
Acquisition of Land - Parker Run
45,960.00
-
590.00
-
18,566.64
26,803.36
-
-
-
(18,566.64)
45,370.00
03-07
Acquisition of Sport Utility Vehicles
649.00
-
649.00
-
-
-
-
-
-
-
-
05-19
Road Improvements - Various
111,315.00
-
12,370.00
-
-
98,945.00
-
-
-
-
98,945.00
07-04
Construction of North Burgee Drive
161,052.00
-
17,925.00
-
32,446.08
110,680.92
-
-
-
(32,446.08)
143,127.00
07-10
Acquisition of Garbage Truck
152,000.00
-
38,000.00
-
5,096.07
108,903.93
-
-
-
(5,096.07)
114,000.00
07-25
Acquisition of Land
1,282,500.00
-
-
-
1,282,500.00
-
-
-
-
-
-
08-03
Acquisition & Installation of Automatic Doors
23,297.00
-
2,297.00
-
14,890.26
6,109.74
-
-
-
(14,890.26)
21,000.00
08-04
Improvements to Lexington Drive
374,850.00
-
41,650.00
-
161,439.07
171,760.93
-
-
-
(161,439.07)
333,200.00
09-05
Improvements to Forest Edge Drive
193,500.00
-
21,500.00
-
92,617.32
79,382.68
-
-
-
(92,617.32)
172,000.00
09-06
Improvements to Frog Pond Road
398,458.00
-
22,000.00
-
200,458.00
176,000.00
-
-
-
-
176,000.00
09-13
Various Capital Improvements
(29,960.00)
-
-
-
(29,960.00)
-
-
-
-
-
-
11-15
Various Capital Improvements
1,100,171.00
-
-
-
168,363.93
931,807.07
-
-
-
(168,363.93)
1,100,171.00
12-12
Various Capital Improvements
-
-
-
-
-
-
-
-
-
-
-
13-14
Various Capital Improvements
1,924,829.00
-
114,000.00
-
-
1,810,829.00
-
-
1,810,829.00
14-10
Various Capital Improvements
1,871,500.00
-
-
-
-
1,871,500.00
1,033,886.90
311,089.00
526,524.10
-
-
16-05
Various Capital Improvements
3,320,250.00
-
-
132,178.46
-
3,188,071.54
-
(132,178.46)
3,320,250.00
17-08
Various Capital Improvements
1,619,750.00
-
-
32,000.00
-
1,587,750.00
-
(32,000.00)
1,619,750.00
18-08
Twin Lakes Blvd Drainage
-
4,250,000.00
-
4,050,329.00
-
199,671.00
199,671.00
-
-
-
-
18-12
Dredging Osborn Island
-
4,000,000.00
-
-
-
4,000,000.00
2,483,330.00
16,670.00
-
1,500,000.00
18-13
Various General Improvements
-
1,973,150.00
-
-
-
1,973,150.00
1,682,183.19
200,839.00
90,127.81
-
-
Total
12,625,629.00
$
10,223,150.00
$
274,000.00
$
4,214,507.46
$
1,946,417.37
$
16,413,854.17
$
5,399,071.09
$
528,598.00
$
623,782.91
$
(657,597.83)
$
10,520,000.00
$
Improvement Authorizations Unfunded
7,673,708.27
Less Unexpended Proceeds Of Bond
Anticipation notes Issued :
13-14
423,450.06
16-05
726,783.40
17-08
411,875.96
18-12
712,527.76
5,399,071.09
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
FOR THE YEAR ENDED DECEMBER 31, 2018
BALANCE DECEMBER 31, 2018
ANALYSIS OF
91
EXHIBIT C-6
Balance December 31, 2017
32,394.00
$
Increased By:
Authorization Cancelled
67,500.00
$
Transfer from Current Fund Budget
100,000.00
167,500.00
Subtotal
199,894.00
Decreased By:
Appropriated to Finance Improvement Authorizations
103,850.00
Balance December 31, 2018
96,044.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2018
92
EXHIBIT C-7
RECLASSIFICATION
CURRENT YEAR
ORDINANCE
2018
PRIOR YEAR
AUTHORIZATION ENCUMBRANCES
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
PAYABLES
EXPENDED
CANCELLED
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
-
-
10,401.93
5,096.07
-
-
07-25
Acquisition of Land
12/13/07
1,350,000.00
67,500.00
1,282,500.00
-
-
-
1,350,000.00
-
-
-
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
-
-
(111,471.46)
170,498.00
-
-
-
09-13
Various Capital Improvements
12/10/09
1,730,000.00
493,376.61
-
-
-
111,471.46
381,905.15
-
-
-
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
-
-
500.00
-
-
-
423,450.06
14-10
Various Capital Improvements
7/10/14
1,970,000.00
-
1,202,198.34
-
-
(142,777.56)
-
311,089.00
-
1,033,886.90
16-05
Various Capital Improvements
9/08/16
3,495,000.00
-
2,487,872.20
-
-
1,641,088.80
-
120,000.00
-
726,783.40
17-08
Various Capital Improvements
7/13/17
1,705,000.00
-
760,699.72
-
314,388.20
658,174.37
-
5,037.59
-
411,875.96
18-08
Twin Lakes Blvd Drainage
4,250,000.00
-
-
4,250,000.00
-
2,086,159.95
-
34,315.75
1,929,853.30
199,671.00
18-12
Dredging Osborn Island
4,000,000.00
-
-
4,000,000.00
-
787,472.24
-
16,670.00
-
3,195,857.76
18-13
Various General Improvements
2,077,000.00
-
-
2,077,000.00
-
193,977.81
-
200,839.00
-
1,682,183.19
18-14
Improvements Veterans Park
480,000.00
-
-
480,000.00
-
-
-
-
480,000.00
-
Total
961,670.57
$
6,720,068.16
$
10,807,000.00
$
314,388.20
$
5,237,463.21
$
2,794,150.81
$
687,951.34
$
2,409,853.30
$
7,673,708.27
$
ORDINANCE
DECEMBER 31, 2017
DECEMBER 31, 2018
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2018
BALANCE
BALANCE
93
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
2017
INCREASED
DECREASED
2018
02-08
Improvements to Cherrywood Drive
2/04/14
30,666
$
2/2/2017
2/2/2018
1.306%
29,052.00
$
-
$
29,052.00
$
-
$
2/2/2018
2/1/2019
1.246%
-
27,438.00
-
27,438.00
02-14/36
Construction of Recreation Facilities
2/04/14
40,730
2/2/2017
2/2/2018
1.306%
39,325.00
-
39,325.00
-
2/2/2018
2/1/2019
1.246%
-
37,920.00
-
37,920.00
02-23
Acquisition of Land - Parker Run
2/04/14
46,550
2/2/2017
2/2/2018
1.306%
45,960.00
-
45,960.00
-
2/2/2018
2/1/2019
1.246%
-
45,370.00
-
45,370.00
03-07
Acquisition of Sport Utility Vehicles
2/04/14
730
2/2/2017
2/2/2018
1.306%
649.00
-
649.00
-
05-19
Road Improvements - Various
2/04/14
117,500
2/2/2017
2/2/2018
1.306%
111,315.00
-
111,315.00
-
2/2/2018
2/1/2019
1.246%
-
98,945.00
-
98,945.00
43,650
Road & Drainage Improvements
North Burgee Drive
2/04/14
170,000
2/2/2017
2/2/2018
1.306%
161,052.00
-
161,052.00
-
2/2/2018
2/1/2019
1.246%
-
143,127.00
-
143,127.00
07-10
Acquisition of Garbage Truck
2/04/14
171,000
2/2/2017
2/2/2018
1.306%
152,000.00
-
152,000.00
-
2/2/2018
2/1/2019
1.246%
-
114,000.00
-
114,000.00
08-03
Acquisition & Installation of Automatic
Doors for Handicap Access
2/04/14
24,130
2/2/2017
2/2/2018
1.306%
23,297.00
-
23,297.00
-
2/2/2018
2/1/2019
1.246%
-
21,000.00
-
21,000.00
08-04
Improvements to Lexington Drive
2/04/14
395,675
2/2/2017
2/2/2018
1.306%
374,850.00
-
374,850.00
-
2/2/2018
2/1/2019
1.246%
-
333,200.00
-
333,200.00
09-05
Improvements to Forest Edge Drive
2/04/14
204,250
2/2/2017
2/2/2018
1.306%
193,500.00
-
193,500.00
-
2/2/2018
2/1/2019
1.246%
-
172,000.00
-
172,000.00
09-06
Improvements to Frog Pond Road
2/04/14
209,000
2/2/2017
2/2/2018
1.306%
198,000.00
-
198,000.00
-
2/2/2018
2/1/2019
1.246%
-
176,000.00
-
176,000.00
11-15
Various Capital Improvements
2/10/12
1,610,250
2/2/2017
2/2/2018
1.306%
1,100,171.00
-
1,100,171.00
-
2/2/2018
2/1/2019
2.500%
-
1,100,171.00
-
1,100,171.00
13-14
Various Capital Improvements
2/04/14
2,042,360
2/2/2017
2/2/2018
1.306%
1,924,829.00
-
1,924,829.00
-
2/2/2018
2/1/2019
2.500%
-
1,810,829.00
-
1,810,829.00
16-05
Various Capital Improvements
2/2/2018
3,320,250
2/2/2018
2/1/2019
2.500%
-
3,320,250.00
-
3,320,250.00
17-08
Various Capital Improvements
2/2/2018
1,619,750
2/2/2018
2/1/2019
2.500%
-
1,619,750.00
-
1,619,750.00
18-12
Dredging Osborn Island
11/20/2018
1,500,000
11/20/2018
8/20/2019
2.250%
-
1,500,000.00
-
1,500,000.00
Total
4,354,000.00
$
10,520,000.00
$
4,354,000.00
$
10,520,000.00
$
Bond Anticipation Note Renewal
4,080,000.00
$
Paid Down by Current Fund
274,000.00
4,354,000.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
DESCRIPTION
AT DECEMBER 31, 2018
STATEMENT OF BOND ANTICIPATION NOTES
IMPROVEMENT
94
EXHIBIT C-9
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2017
DECREASED
2018
General Obligation Refunding
2/1/2010
3,275,000
$
08/01/19
300,000
$
4.000%
1,190,000.00
$
300,000.00
$
890,000.00
$
Bonds
08/01/20
295,000
5.000%
08/01/21
295,000
5.000%
General Obligation Refunding
5/2/2012
5,260,000
11/15/19
545,000
2.000%
3,180,000.00
545,000.00
2,635,000.00
Bonds
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
2/01/19
325,000
2.000%
4,500,000.00
275,000.00
4,225,000.00
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
8,870,000.00
$
1,120,000.00
$
7,750,000.00
$
Paid from Current Fund
1,120,000.00
$
Total
1,120,000.00
$
MATURITIES OF
DECEMBER 31, 2018
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
AT DECEMBER 31, 2018
95
EXHIBIT C-10
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2017
DECREASED
2018
Open Space
10/22/02
255,220.00
$
2019
14,729.32
$
2.00%
75,156.68
$
14,439.10
$
60,717.58
$
Acquisition
2020
15,025.39
2021
15,327.40
2022
15,635.47
Recreation Complex
7/18/02
500,000.00
2019
29,144.69
2.00%
133,165.57
28,570.42
104,595.15
2020
29,730.50
2021
30,328.08
2022
15,392.88
Municipal Complex
9/7/05
250,000.00
2019
13,727.00
2.00%
107,770.00
13,457.00
94,313.00
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
2019
13,324.07
2.00%
127,462.06
13,061.54
114,400.52
Softball Field
2020
13,591.89
& Tot Lot
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
443,554.31
$
69,528.06
$
374,026.25
$
MATURITIES OF
DECEMBER 31, 2017
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GREEN TRUST LOAN PAYABLE
AT DECEMBER 31, 2018
96
EXHIBIT C-11
BALANCE
2018
BALANCE
ORDINANCE
IMPROVEMENT
DECEMBER 31,
AUTHORIZATIONS
2018
NOTES/LOANS
DECEMBER 31,
NUMBER
DESCRIPTION
2017
/INCREASES
REDUCTIONS
ISSUED
2018
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
-
18-08
Twin Lakes Blvd Drainage
-
4,250,000.00
-
4,050,329.00
199,671.00
18-12
Dredging Osborn Island
-
4,000,000.00
-
1,500,000.00
2,500,000.00
18-13
Various Capital Improvements
-
1,973,150.00
-
-
1,973,150.00
Total
8,271,629.00
$
10,223,150.00
$
1,452,998.00
$
10,490,329.00
$
6,551,452.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
AT DECEMBER 31, 2018
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
97
EXHIBIT C-12
Balance December 31, 2017
396,690.16
$
Decreased By:
Grants previously received State & Federal Grant Fund
396,690.16
Balance December 31, 2018
-
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF STATE ROAD AID ALLOTMENTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2018
98
PAYROLL FUND
99
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100
EXHIBIT D-1
PAYROLL FUND
STATEMENT OF PAYROLL FUND CASH
FOR THE YEAR ENDED DECEMBER 31, 2018
Balance December 31, 2017
228,900.14
$
Increased by:
Receipts
12,685,020.89
Subtotal
12,913,921.03
Decreased by:
Disbursements:
Net Pay
6,298,261.20
$
Paid to Current
460,316.51
Payment to Agencies
5,943,315.55
12,701,893.26
Balance December 31, 2018
212,027.77
$
EXHIBIT D-2
FOR THE YEAR ENDED DECEMBER 31, 2018
Balance December 31, 2017
203,163.50
$
Increased by:
Payroll Deductions
6,386,759.69
Subtotal
6,589,923.19
Decreased by:
Due Current Fund
562,393.59
$
Disbursements
5,943,315.55
6,505,709.14
Balance December 31, 2018
84,214.05
$
ANALYSIS OF BALANCE
State Tax Liability
3,603.39
$
PERS
30,432.92
PFRS
50,177.74
Balance December 31, 2018
84,214.05
$
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF PAYROLL TAXES PAYABLE
101
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102
TOWNSHIP OF LITTLE EGG HARBOR
PART II
SINGLE AUDIT SECTION
FOR THE YEAR ENDED DECEMBER 31, 2018
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE AND NEW JERSEY OMB CIRCULAR 15-08
Honorable Mayor and Members
of the Township Committee
Township of Little Egg Harbor
County of Ocean
Little Egg Harbor, New Jersey
Report on Compliance for Each Major State Program
We have audited the Township of Little Egg Harbor’s compliance with the types of compliance
requirements described in the New Jersey State Aid/Grant Compliance Supplement that could have a
direct and material effect on each of the Township’s major state programs for the year ended December
31, 2018. The Township’s major state programs are identified in the summary of auditor’s results section
of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with state statutes, regulations, and the terms and conditions
of its state awards applicable to its state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Township’s major state
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with 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; Title 2 U.S. Code of Federal Regulations (CFR) Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance); New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal
Grants, State Grants and State Aid; and audit requirements prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey. Those standards and New
Jersey OMB’s Circular 15-08 require that we plan and perform the audit to obtain reasonable assurance
about whether noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major state program occurred. An audit includes examining, on a
test basis, evidence about the Township’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major state
program. However, our audit does not provide a legal determination of the Township’s compliance.
105
Opinion on Each Major State Program
In our opinion, the Township of Little Egg Harbor complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its
major state programs for the year ended December 31, 2018.
Report on Internal Control Over Compliance
Management of the Township of Little Egg Harbor is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above.
In planning and performing our audit of compliance, we considered the Township’s internal control over
compliance with the types of requirements that could have a direct and material effect on each major state
program to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major state program and to test and report on internal
control over compliance in accordance with the Uniform Guidance and New Jersey OMB’s Circular 15-
08, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the Township’s internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
state program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a state program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance
with a type of compliance requirement of a state program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
106
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance and New Jersey OMB’s Circular 15-08. Accordingly, this report 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
August 5, 2019
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SCHEDULE B
State
GRANT
Program
Passed To
Accumulated
State Department/Agency Program Title
Account Number
PERIOD
Expenditures
Sub-Receipients
Expenditures
New Jersey Department of Environmental Protection:
Clean Communities Grant
765-042-4900-004
N/A
70,072.23
$
-
$
70,072.23
$
Recycling Tonnage Grant
100-042-4910-224
N/A
10,326.58
-
10,326.58
NJEIT Trust Loans:
Project #S344060-02 - Twin Lakes Blvd Draining
unavailable
N/A
2,120,475.70
-
2,120,475.70
Total New Jersey Department of Environmental Protection
2,200,874.51
-
2,200,874.51
Department of Transportation:
Municipal Aid Program - 2017
480-078-6320-AMQ
N/A
200,000.00
-
200,000.00
Total Department of Transportation
200,000.00
-
200,000.00
Department of Law and Public Safety:
Body Armor Replacement
718-066-1020-001
N/A
3,428.90
-
3,428.90
Safe and Secure Communities
100-066-1020-232
N/A
382,460.00
-
382,460.00
Post Sandy Planning Assistance
unavailable
N/A
15,930.93
-
15,930.93
Drunk Driving Enforcement Fund
unavailable
N/A
2,604.96
-
2,604.96
Total Department of Law and Public Safety
404,424.79
-
404,424.79
Total Federal Financial Assistance
2,805,299.30
$
-
$
2,805,299.30
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR YEAR ENDED DECEMBER 31, 2018
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TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 1. Basis of Presentation
The accompanying schedule of expenditures of state financial assistance present the activity of all state
financial assistance programs of the Township of Little Egg Harbor. The Township is defined in Note 1
of the basic financial statements. The information in this schedule is presented in accordance with the
requirements of New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants,
State Grants and State Aid. All state awards received directly from state agencies, as well as state
financial assistance passed through other government agencies is included on the schedule of
expenditures of state financial assistance.
Note 2. Summary of Significant Accounting Policies
The accompanying schedule of state financial assistance is presented using the modified accrual basis of
accounting as promulgated by the State of New Jersey, Department of Community Affairs, Division of
Local Government Services, which is described in the Notes to the Financial Statements, Note 1.
The amounts shown as current year expenditures represent only the state grant portion of the program
costs. Such expenditures are recognized following the cost principles contained in State of New Jersey
OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Township did not elect the 10-percent de deminimis indirect cost rate as discussed in 2 CFR 200.414.
Note 3. Relationship to Basic Financial Statements
Amounts reported in the accompanying schedule agree with amounts reported in the Township's financial
statements. Expenditures from awards are reported in the Township’s financial statements as follows:
State
Total
State & Federal Grant Fund
684,823.60
$
684,823.60
$
General Capital Fund
2,120,475.70
2,120,475.70
Total
2,805,299.30
$
2,805,299.30
$
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TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2018
Note 4. Relationship to State Financial Reports
The regulations and guidelines governing the preparation of state financial reports vary by state agency
and among programs administered by the same agencies. Accordingly, the amounts reported in the state
financial reports do not necessarily agree with the amounts reported in the accompanying Schedule,
which is prepared on the modified accrual basis of accounting as explained in Note 2.
Note 5. State Loans Outstanding
The Township had the following loan balances outstanding at December 31, 2018:
State
Total
NJEIT Loans
4,050,329.00
$
4,050,329.00
$
Total
4,050,329.00
$
4,050,329.00
$
Note 6. Contingencies
Each of the grantor agencies reserves the right to conduct additional audits of the Township’s grant
program for economy, efficiency and program results. However, the Township administration does not
believe such audits would result in material amounts of disallowed costs.
Note 7. Major Programs
Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings
and Questioned Costs.
112
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
1) Material weakness(es) identified?
yes
x
no
2) Significant deficiency(ies) identified?
yes
x
none reported
Noncompliance material to financial statements noted?
yes
x
no
State Financial Assistance
Dollar threshold used to determine Type A programs
Auditee qualified as low-risk auditee?
yes
x
no
Internal control over major programs:
1) Material weakness(es) identified?
yes
x
no
2) Significant deficiency(ies) identified?
yes
x
no
Type of auditor's report issued on compliance for major programs
Any audit findings disclosed that are required to be reported
in accordance with New Jersey OMB's Circular 15-08?
yes
x
no
Identification of major programs:
State Grant/Project Number(s)
Name of State Program
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Section I - Summary of Auditor's Results
Unmodified
Unmodified
$750,000.00
S344060-02
NJEIT Loan - Twin Lakes Blvd. Drainage Improvements
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TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS & QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Section II – Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance
related to the basic financial statements that are required to be reported in accordance with Government
Auditing Standards and with audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
None
114
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS & QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Section III – State Financial Assistance Findings & Questioned Costs
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance,
including questioned costs, related to the audit of major state programs, as required by New Jersey
OMB’s Circular 15-08.
None
115
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, 2018
This section identifies the status of prior year findings related to the financial statements and state
financial assistance that are required to be reported in accordance with Government Auditing Standards
and New Jersey OMB’s Circular 15-08.
FINANCIAL STATEMENT FINDINGS
Finding No. 2017-001
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 been corrected.
STATE FINANCIAL ASSISTANCE
N/A – No State Single Audit in prior year.
116
TOWNSHIP OF LITTLE EGG HARBOR
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
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OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2018:
Name
Title
Raymond Gormley
Mayor
Barbara Jo Crea
Deputy Mayor
John Kehm, Jr
Committeeman
Dave Schlick
Committeeman
Lisa Stevens
Committeewoman
Rodney Haines
Matthew Spadaccini
Chief Financial Officer
Township Administrator
Diana McCracken
Township Clerk
Dayna Wilson
Tax Collector, Tax Search Officer
Alina Bertram
Court Administrator
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Honorable Mayor and Members
of the Township Committee
Township of Little Egg Harbor
County of Ocean
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, 2018.
GENERAL COMMENTS:
Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)
N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or
hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of
public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the
Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as
is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by
contract or agreement.
The bid threshold in accordance with N.J.S.A. 40A:11-4 was $17,500 for the year ended December 31, 2018.
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.
121
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, 2018 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 2018-001 – The Township had an over-expenditure in the appropriation reserve year budget
during 2018.
RECOMMENDATIONS:
Finding 2018-001
That the Township transfer funds as needed to avoid over-expenditures in accordance with N.J.S.A.
40A:4-59.
122
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
August 5, 2019
123
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