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Executive Summary
The Township of Little Egg Harbor's audit report for the year ended December 31, 2019, provides an overview of the township's financial position and compliance with regulatory requirements. The audit encompasses various funds, including the Current Fund, Trust Fund, General Capital Fund, and Payroll Fund. It includes independent auditor's reports on the financial statements and internal control over financial reporting, assessing compliance with governmental auditing standards and state regulations. The report details the township's assets, liabilities, reserves, fund balances, revenues, and expenditures, along with related notes and supplemental schedules. The report also includes an 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.
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--- Document: 2019 Audit Document ---
TOWNSHIP OF LITTLE EGG HARBOR
AUDIT REPORT FOR THE YEAR
ENDED DECEMBER 31, 2019
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
Statement of Fund Balance – Regulatory Basis
C-1
20
Payroll Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
D
21
Fixed Assets:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
E
22
Notes to Financial Statements
25
Supplemental Exhibits:
Current Fund:
Schedule of Cash - Treasurer
A-4
67
Schedule of Taxes Receivable & Analysis of Property
Tax Levy
A-5
68
Schedule of Tax Title Liens
A-6
69
Schedule of Property Acquired for Taxes
A-7
69
Statement of Revenue Accounts Receivable
A-8
70
Schedule of 2018 Appropriation Reserves
A-9
71
(continued)
EXHIBITS PAGE
Supplemental Exhibits (continued):
Current Fund (continued):
Schedule of Local District Tax
A-10
74
Schedule of Regional High School Tax Payable
A-11
74
Schedule of Various Reserves
A-12
75
Schedule of State and Federal Grants Receivable
A-13
76
Schedule of Reserves for State and Federal
Grants - Appropriated
A-14
77
Schedule of Reserve for State Grants - Unappropriated
A-15
78
Trust Fund:
Schedule of Cash - Treasurer
B-1
81
Schedule of Cash – Collector – Tax Title Lien
Redemption
B-2
81
Schedule of Cash – Animal Control
B-3
82
Schedule of Reserve for Dog Fund Expenditures
B-4
82
Schedule of Deposits for Redemption of Tax Sale
Certificates
B-5
82
Schedule of Reserve for Escrow Deposits
B-6
83
Schedule of Reserve for Forfeited Property
B-7
83
Schedule of Reserve for Planning Board
B-8
84
Schedule of Reserve for Recreation
B-9
84
Schedule of Reserve for Open Space
B-10
85
Schedule of Reserve for Community Center
B-11
85
Schedule of Reserve for Federal Forfeiture Law
B-12
86
Schedule of Reserve for Sick and Vacation Time Trust
B-13
86
Schedule of Reserve for COAH Trust Fund
B-14
87
Schedule of Reserve for Police Community Activities
B-15
87
Schedule of Reserve for Police K-9 Equipment Donations
B-16
88
Schedule of Reserve for Police Evidence Deposits
B-17
88
Schedule of Reserve for Veterans Park Donations
B-18
89
General Capital Fund:
Schedule of Cash – Treasurer
C-2
93
Analysis of Cash
C-3
94
Schedule of Deferred Charges to Future Taxation–Funded
C-4
96
Schedule of Deferred Charges to Future Taxation–Unfunded
C-5
97
Schedule of Capital Improvement Fund
C-6
98
Schedule of Improvement Authorizations
C-7
99
Schedule of Bond Anticipation Notes
C-8
100
Schedule of General Serial Bonds
C-9
101
Schedule of Green Trust Loan Payable
C-10
102
Schedule of Bonds & Notes Authorized But Not Issued
C-11
103
Payroll Fund:
Statement of Payroll Fund Cash
D-1
107
Statement of Payroll Taxes Payable
D-2
107
(continued)
EXHIBITS PAGE
PART II
Independent Auditor’s Report on Compliance For Each
Major Program and on Internal Control Over Compliance
Required by Uniform Guidance and New Jersey OMB Circular 15-08
111
Schedule of Expenditures of Federal Awards
115
Schedule of Expenditures of State Financial Assistance
116
Notes to Schedule of Expenditures of Federal Awards
And State Financial Assistance
117
Schedule of Findings & Questioned Costs
119
Summary of Prior Audit Findings and Questioned Costs
As Prepared by Management
123
PART III
Letter of Comments and Recommendations – Regulatory Basis:
Officials in Office
127
General Comments
129
Other Comments (Findings)
130
Recommendations
130
Acknowledgment
131
(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, 2019
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,
2019 and 2018, 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, 2019 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.
1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of
America
As 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, 2019 and 2018, or the results of its
operations and changes in fund balance for the years then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets,
liabilities, reserves and fund balance - regulatory basis of the various funds of the Township, as of
December 31, 2019 and 2018, and the results of its operations and changes in fund balance - regulatory
basis of such funds for the years then ended, and the 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, 2019 in conformity with accounting principles and practices prescribed
by the Division of Local Government Services, Department of Community Affairs, State of New Jersey
as described in Note 1.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Township’s basic financial statements. The supplemental schedules presented for the
various funds are presented for purposes of additional analysis as required by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey and are not a required part
of the basic financial statements. The 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
2
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.
The supplemental schedules presented for the various funds and the schedules of expenditures of federal
awards and state financial assistance are the responsibility of management and were 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 September 28,
2020 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
Toms River, New Jersey
September 28, 2020
3
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4
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members
of the 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, 2019, and the related notes to the financial statements, which collectively comprise the
Township's basic financial statements, and have issued our report thereon dated September 28, 2020. 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
Toms River, New Jersey
September 28, 2020
6
BASIC FINANCIAL STATEMENTS
7
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8
EXHIBIT A
(Page 1 of 2)
CURRENT FUND
ASSETS
REFERENCE
2019
2018
Operating Fund:
Cash:
Treasurer
A-4
6,597,558.44
$
6,246,638.44
$
Change Fund
A
1,800.00
1,800.00
Total Cash
6,599,358.44
6,248,438.44
Other Receivables:
Due From State of New Jersey
A
233,032.91
241,986.54
Total Other Receivables
233,032.91
241,986.54
Deferred Charges:
Overexpenditure of Appropriation Reserves
-
249,536.59
Total Deferred Charges
-
249,536.59
Receivables & Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-5
78,738.69
76,581.35
Tax Title Liens Receivable
A-6
896,191.57
812,765.26
Property Acquired/Assessed Valuation
A-7
5,757,700.00
5,757,700.00
Revenue Accounts Receivable
A-8
12,441.67
12,525.96
Due from Trust Other
B
9,021.37
6,303.22
Due from Turst Assessment
B
54,096.41
-
Due from Payroll
D
125,353.33
127,813.72
Due from Grant Fund
A
140,000.00
-
Prepaid School Tax
A-11
-
103,812.29
Total Receivables
7,073,543.04
6,897,501.80
Special Emergency Appropropriations:
Community Disaster Loan
A
4,363,858.79
4,375,025.68
Total Deferred Charges
4,363,858.79
4,375,025.68
Total Operating Fund Assets
18,269,793.18
18,012,489.05
Federal & State Grant Fund:
Cash - Treasurer
A-4
54,411.02
384,070.47
Grants Receivable
A-14
1,336,533.69
2,133,111.65
Due from Current Fund
A
-
782.00
Total Federal & State Grant Fund Assets
1,390,944.71
2,517,964.12
Total Assets
19,660,737.89
$
20,530,453.17
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2019 AND 2018
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
9
EXHIBIT A
(Page 2 of 2)
LIABILITIES RESERVES & FUND BALANCE
REFERENCE
2019
2018
Operating Fund:
Appropriation Reserve:
Encumbered
A-3
145,949.70
$
103,537.52
$
Unencumbered
A-3
1,520,627.37
427,466.20
Prepaid Taxes
A-4
705,318.70
679,278.79
Tax Overpayments
A
308,124.34
174,398.28
Accounts Payable
A-9
5,107.82
-
Due County for Added & Omitted Taxes
A
53,573.88
84,984.67
Due Municipal Open Space Tax Fund
B
127.35
-
Local School Taxes Payable
A-10
1,862,593.00
1,204,632.46
Regional School Taxes Payable
A-11
471,424.52
-
Due Bass River - UCC Fees
A
1,683.90
1,192.80
Due to State - DCA Training Fees
A
7,093.00
7,661.00
Due to State - Marriage Licenses
A
-
725.00
Due to Grant Fund
A
-
782.00
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
54,052.92
Reserve for Retail Mercantile Licenses
A-12
350.00
2,700.00
Reserve for Debt Service -Green Acres
A-12
-
7,772.89
Reserve for FEMA Proceeds
A-12
3,722.78
3,722.78
CDL - Loan Payable
A
4,220,140.75
4,250,000.00
CDL - Interest Payable
A
143,718.04
125,025.68
Total Operating Liabilities
9,606,074.07
7,230,398.99
Reserve for Receivables
A
7,073,543.04
6,897,501.80
Fund Balance
A-1
1,590,176.07
3,884,588.26
Total Operating Fund
18,269,793.18
18,012,489.05
Federal & State Grant Fund:
Reserve for State Grants:
Appropriated Reserves
A-14
1,236,567.96
2,505,825.93
Unappropriated Reserves
A-15
3,245.00
9,855.25
Encumbrances Payable
A-14
11,131.75
2,282.94
Due to Current Fund
A
140,000.00
-
Total Federal & State Grant Fund
1,390,944.71
2,517,964.12
Total Liabilities Reserve & Fund Balance
19,660,737.89
$
20,530,453.17
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2019 AND 2018
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
10
EXHIBIT A-1
2019
2018
Revenue & Other Income Realized:
Fund Balance Utilized
2,850,000.00
$
2,850,000.00
$
Miscellaneous Revenues Anticipated
4,668,992.24
3,778,923.99
Receipts From Delinquent Taxes
59,664.01
62,208.94
Receipts From Current Taxes
59,370,635.81
56,050,262.72
Nonbudget Revenues
264,153.22
749,123.56
Other Credits to Income:
Senior & Vet Deduction Adjustment
-
15,232.19
Interfunds Returned
-
73,192.17
Unexpended Balance of Appropriation Reserves
100,740.34
851,075.31
Total Revenue & Other Income
67,314,185.62
64,430,018.88
Expenditures:
Budget & Emergency Appropriations:
Appropriations Within "CAPS":
Operations:
Salaries and Wages
9,682,155.00
8,985,150.00
Other Expenses
8,015,550.00
7,617,572.04
Deferred Charges & Statutory Expenditures
2,768,578.59
2,384,706.72
Appropriations Excluded From "CAPS":
Operations:
Salaries and Wages
464,300.00
415,000.00
Other Expenses
648,396.12
725,688.65
Capital Improvement Fund
100,000.00
100,000.00
Municipal Debt Service
2,521,496.30
1,716,466.68
Deferred Charges
63,964.00
-
County Taxes
9,859,441.46
9,746,839.84
Local District School Tax
13,826,701.00
13,656,994.29
Regional High School Tax
16,686,714.71
15,250,618.00
Special District Taxes
1,629,856.00
1,678,653.00
Municipal Open Space
23,406.80
23,377.70
Tax Overpayment Adjustment
-
191,172.90
Prior Year Refunds
543.50
-
Cancel Prior Year Taxes Realized
262,204.08
-
Prior Year Senior Citizen & Veterans Deduction
11,193.84
-
Interfund Advances
194,096.41
-
Total Expenditures
66,758,597.81
62,492,239.82
Statutory Excess to Fund Balance
555,587.81
1,937,779.06
Fund Balance January 1,
3,884,588.26
4,796,809.20
Total
4,440,176.07
6,734,588.26
Decreased by: Utilized as Anticipated Revenue
2,850,000.00
2,850,000.00
Fund Balance December 31, 2018
1,590,176.07
$
3,884,588.26
$
The accompanying Notes to the Financial Statements are an integral part of this Statement
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
STATEMENTS OF OPERATIONS AND CHANGES
IN FUND BALANCE - REGULATORY BASIS
11
EXHIBIT A-2
ANTICIPATED
ADDED BY
EXCESS OR
BUDGET
N.J.S.40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
2,850,000.00
$
-
$
2,850,000.00
$
-
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
10,500.00
-
10,564.00
64.00
Other
180,000.00
-
182,633.50
2,633.50
Municipal Court
203,000.00
-
213,629.83
10,629.83
Interest & Cost on Taxes
95,000.00
-
182,702.53
87,702.53
Payments in Lieu of Taxes
67,000.00
-
97,121.13
30,121.13
Energy Receipts Tax
1,299,939.00
-
1,299,939.00
-
Uniform Construction Code Fees
465,000.00
-
466,845.40
1,845.40
Garden State Trust
149,117.00
-
149,117.00
-
Tower Rental
200,000.00
-
208,410.41
8,410.41
SRO Reimbursement
230,000.00
-
237,128.80
7,128.80
CATV Franchise Fees
83,000.00
-
83,922.67
922.67
Capital - Reserve for Debt Service
780,233.44
-
780,233.44
-
Capital - Reserve for Debt Service Premiums
63,987.00
-
63,987.00
-
Trust Assessment Fund Balance - Prior Assessments
54,096.41
-
54,096.41
-
Additional Revenues Offset With Appropriations:
Clean Communities Program
-
58,471.27
58,471.27
-
Body Armor Replacement
-
4,412.94
4,412.94
-
Recycling Tonnage Grant
-
31,839.12
31,839.12
-
Department of Justice
9,855.25
-
9,855.25
-
CDBG - 2019
-
35,000.00
35,000.00
-
NJOEM 966 Grant
-
6,890.54
6,890.54
-
NJ DOT Municipal Aid Road Grant 2019
432,192.00
-
432,192.00
-
Safe and Secure Communities
60,000.00
-
60,000.00
-
Total Miscellaneous
4,382,920.10
136,613.87
4,668,992.24
149,458.27
Receipts from Delinquent Taxes
25,000.00
-
59,664.01
34,664.01
Subtotal General Revenues
7,257,920.10
136,613.87
7,578,656.25
184,122.28
Amount to be Raised by Taxes for Support to Municipal
Budget - Local Tax for Municipal Purposes
17,273,431.59
-
17,644,215.40
370,783.81
Budget Totals
24,531,351.69
136,613.87
25,222,871.65
554,906.09
Nonbudget Revenues
-
-
264,153.22
264,153.22
Total
24,531,351.69
$
136,613.87
$
25,487,024.87
$
819,059.31
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
12
EXHIBIT A-2
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
Allocation of Current Tax Collections:
Revenue From Collections
59,370,635.81
$
Allocated to - School, County & Special District Taxes
42,129,932.26
Balance for Support of Municipal Budget Revenues
17,240,703.55
Add: Appropriation - "Reserve for Uncollected Taxes"
403,511.85
Amount for Support of Municipal Budget Appropriations
17,644,215.40
$
Receipts From Delinquent Taxes:
Delinquent Tax Collections
-
$
Tax Title Lien Collections
59,664.01
Total Receipts From Delinquent Taxes
59,664.01
$
Analysis of Nonbudget Revenue:
Treasurer:
Insurance Reimbursements
54,801.07
$
Interest on Investments and Deposits
36,125.72
Trash Cans
15,850.00
Shared Service Labor Charges
2,823.00
Prior Year Expense Reimbursement
9,632.52
Void Prior Year Erroneous Checks
30,852.79
Sale of Equipment
11,873.45
OCJIF Dividend
18,692.00
Recycling Receipts
15,300.15
Other
68,202.52
Total Analysis of Nonbudget Revenue
264,153.22
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
ANALYSIS OF REALIZED REVENUE
13
EXHIBIT A-3
(Page 1 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
General Government:
General Administration:
Salaries and Wages
180,500.00
$
180,500.00
$
169,249.44
$
-
$
11,250.56
$
-
$
Other Expenses
6,400.00
6,400.00
5,262.05
-
1,137.95
-
Mayor and Committee:
Salaries and Wages
66,200.00
66,200.00
54,740.41
-
11,459.59
-
Other Expenses
4,500.00
4,500.00
4,152.53
-
347.47
-
Municipal Clerk:
Salaries and Wages
270,500.00
270,500.00
252,587.28
-
17,912.72
-
Other Expenses
75,500.00
75,500.00
56,516.55
51.75
18,931.70
-
Financial Administration (Treasury):
Salaries and Wages
312,000.00
312,000.00
290,980.42
-
21,019.58
-
Other Expenses
40,800.00
40,800.00
33,625.84
737.10
6,437.06
-
Audit Services:
Other Expenses
60,000.00
60,000.00
19,035.75
-
40,964.25
-
Revenue Administration (Tax Collection):
Salaries and Wages
207,600.00
207,600.00
192,422.89
-
15,177.11
-
Other Expenses:
Tax Sale Costs
10,000.00
10,000.00
39.88
2,656.92
7,303.20
-
Miscellaneous Other Expenses
20,000.00
20,000.00
15,814.56
1,810.59
2,374.85
-
Tax Assessment Administration:
Salaries and Wages
216,600.00
216,600.00
206,077.94
-
10,522.06
-
Other Expenses
5,000.00
5,000.00
3,226.91
438.50
1,334.59
-
Liquidation of Tax Title Liens & Foreclosed
Property - Other Expenses
3,000.00
3,000.00
-
-
3,000.00
-
Legal Services (Legal Department):
Other Expenses
347,000.00
347,000.00
236,746.31
4,514.45
105,739.24
-
Engineering Services:
Other Expenses
180,000.00
180,000.00
93,606.36
7,495.00
78,898.64
-
Economic Development Agencies:
Salaries and Wages
-
Other Expenses
-
Land Use Administration:
Planning Board:
Salaries and Wages
1,200.00
1,200.00
900.00
-
300.00
-
Other Expenses
2,500.00
2,500.00
1,028.00
-
1,472.00
-
Zoning Board of Adjustment:
Salaries and Wages
1,200.00
1,200.00
800.00
-
400.00
-
Other Expenses
10,000.00
10,000.00
4,320.54
299.88
5,379.58
-
Zoning Officer:
Salaries and Wages
288,850.00
288,850.00
261,722.01
-
27,127.99
-
Other Expenses
20,000.00
20,000.00
16,358.13
-
3,641.87
-
Insurance:
Unemployment Insurance
40,000.00
40,000.00
36,309.88
-
3,690.12
-
Group Insurance for Employees
3,095,000.00
3,095,000.00
3,089,753.49
-
5,246.51
-
Health Benefit Waiver
175,000.00
175,000.00
165,073.89
-
9,926.11
-
Other Insurance: JIF, Surety, Workers Comp
510,000.00
510,000.00
508,323.00
-
1,677.00
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
APPROPRIATIONS
14
EXHIBIT A-3
(Page 2 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Public Safety Functions:
Police Department:
Salaries and Wages
5,725,500.00
5,725,500.00
5,386,244.46
-
339,255.54
-
Other Expenses
269,400.00
269,400.00
220,165.36
22,562.45
26,672.19
-
Office of Emergency Management:
Salaries and Wages
22,500.00
22,500.00
22,500.00
-
-
-
Other Expenses
1,000.00
1,000.00
-
-
1,000.00
-
Aid to Volunteer Fire Company
2,400.00
2,400.00
2,400.00
-
-
First Aid Squad Contribution
70,000.00
70,000.00
-
25,000.00
45,000.00
-
Municipal Prosecutor:
Other Expenses
55,000.00
55,000.00
43,500.00
-
11,500.00
-
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
363,425.00
363,425.00
304,746.36
-
58,678.64
-
Other Expenses
78,450.00
78,450.00
67,789.19
704.55
9,956.26
-
Solid Waste Sanitation:
Salaries and Wages
291,000.00
291,000.00
270,591.13
-
20,408.87
-
Other Expenses
126,000.00
126,000.00
115,140.21
6,957.96
3,901.83
-
Bulk Property Maintance Pick-Up
50,000.00
52,000.00
51,959.00
-
41.00
-
Solid Waste Recycling:
Salaries and Wages
393,000.00
393,000.00
341,204.19
-
51,795.81
-
Other Expenses
28,000.00
28,000.00
17,444.33
5,079.57
5,476.10
-
Buildings & Grounds:
Salaries and Wages
201,800.00
201,800.00
189,607.72
-
12,192.28
-
Other Expenses
131,200.00
137,200.00
127,750.74
6,178.29
3,270.97
-
Contracted Custodial Services
-
-
Vehicle Maintenance:
Salaries and Wages
157,780.00
157,780.00
139,083.19
-
18,696.81
-
Other Expenses
153,500.00
153,500.00
121,766.28
13,259.68
18,474.04
-
Municipal Services Act:
Other Expenses
60,000.00
60,000.00
17,040.69
-
42,959.31
-
County Mosquito Control Agency:
Salaries and Wages
-
-
-
Other Expenses
40,000.00
32,000.00
981.00
-
31,019.00
-
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
1,200.00
1,200.00
100.00
-
1,100.00
-
Other Expenses
5,000.00
5,000.00
2,050.70
356.00
2,593.30
-
Environmental Health Services:
Salaries and Wages
1,200.00
1,200.00
700.00
-
500.00
-
Other Expenses
400.00
400.00
350.00
-
50.00
-
Animal Control Services:
Other Expenses
50,000.00
50,000.00
40,098.00
568.00
9,334.00
-
Contributions to Social Service Agencies - Statutory:
Providence House
1,000.00
1,000.00
-
-
1,000.00
-
On Point Assistance Program
40,000.00
40,000.00
20,000.00
-
20,000.00
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
APPROPRIATIONS
EXPENDED
15
EXHIBIT A-3
(Page 3 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Park & Recreation Functions:
Recreation Services & Programs:
Salaries and Wages
160,950.00
160,950.00
149,309.82
-
11,640.18
-
Other Expenses
27,000.00
27,000.00
10,913.10
635.18
15,451.72
-
Senior Center/Community Activities:
Salaries and Wages
-
-
-
Other Expenses
2,500.00
2,500.00
54.00
-
2,446.00
-
Utility Expenses & Bulk Purchases:
Electricity
190,000.00
190,000.00
145,894.94
-
44,105.06
-
Street Lighting
405,000.00
405,000.00
366,233.92
-
38,766.08
-
Telephone
205,000.00
205,000.00
175,357.04
7,426.60
22,216.36
-
Fuel Oil/Natural Gas
40,000.00
40,000.00
32,736.97
6,718.55
544.48
-
Gasoline
260,000.00
260,000.00
189,983.17
29,458.98
40,557.85
-
Landfill/Solid Waste Disposal Costs:
Sanitary Landfill
800,000.00
800,000.00
800,000.00
-
-
-
Uniform Construction Code Enforcement Functions:
Construction Code Official:
Salaries and Wages
482,250.00
482,250.00
437,434.60
-
44,815.40
-
Other Expenses
25,000.00
25,000.00
15,270.11
-
9,729.89
-
Municipal Court:
Salaries and Wages
333,900.00
336,900.00
324,554.81
12,345.19
-
Other Expenses
25,000.00
22,000.00
12,241.76
1,143.00
8,615.24
-
Public Defender:
Other Expenses
50,000.00
50,000.00
34,582.00
-
15,418.00
-
Other Common Operating Functions (Unclassified):
Municipal Alliance Council
17,000.00
17,000.00
15,850.02
-
1,149.98
-
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
50,000.00
50,000.00
3,277.99
-
46,722.01
-
Total Operations Within "CAPS"
17,697,705.00
17,697,705.00
16,091,580.86
144,053.00
1,462,071.14
-
Detail:
Salaries and Wages
9,679,155.00
9,682,155.00
8,995,556.67
-
686,598.33
-
Other Expenses
8,018,550.00
8,015,550.00
7,096,024.19
144,053.00
775,472.81
-
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Deferred Charges:
Overexpenditure of Appropriation Rsv
249,536.59
249,536.59
249,536.59
-
-
-
Statutory Expenditures:
Social Security System (O.A.S.I.)
755,000.00
755,000.00
723,441.79
-
31,558.21
-
Defined Contribution Retirement Program
5,000.00
5,000.00
4,806.25
-
193.75
-
Police & Firemen's Retirement
Pension
1,255,309.00
1,255,309.00
1,255,309.00
-
-
-
Public Employees Retirement
System
503,733.00
503,733.00
503,733.00
-
-
-
Total Deferred Charges & Statutory
Expenditures Within "CAPS"
2,768,578.59
2,768,578.59
2,736,826.63
-
31,751.96
-
Total General Appropriations for Municipal
Purposes Within "CAPS"
20,466,283.59
20,466,283.59
18,828,407.49
144,053.00
1,493,823.10
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
EXPENDED
APPROPRIATIONS
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
16
EXHIBIT A-3
(Page 4 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Operations Excluded From "CAPS":
Public & Private Programs Offset by Revenues:
Department of Justice
9,855.25
9,855.25
9,855.25
-
-
-
Coastal Zone Management
-
4,412.94
4,412.94
-
-
-
Recycling Tonnage Grant
-
31,839.12
31,839.12
-
-
-
NJ DOT Municipal Aid Road Grant 2019
432,192.00
432,192.00
432,192.00
-
-
-
Safe & Secure Communities
60,000.00
60,000.00
60,000.00
-
-
-
Clean Communities Grant CY19
-
58,471.27
58,471.27
-
-
-
CDBG - 2019
-
35,000.00
35,000.00
-
-
-
NJOEM - 966 Grant
-
6,890.54
6,890.54
-
-
-
Police Dispatch/911:
Salaries and Wages
464,300.00
465,300.00
439,444.03
-
25,855.97
-
Other Expenses
4,500.00
3,500.00
655.00
1,896.70
948.30
-
Supplemental Aid to Fire Districts
5,235.00
5,235.00
5,235.00
-
-
-
Total Operations Excluded from
"CAPS"
976,082.25
1,112,696.12
1,083,995.15
1,896.70
26,804.27
-
Detail:
Salaries and Wages
464,300.00
464,300.00
439,444.03
-
24,855.97
-
Other Expenses
511,782.25
648,396.12
644,551.12
1,896.70
1,948.30
-
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
1,170,000.00
1,170,000.00
1,170,000.00
-
-
-
Payment of Bond Anticipation Notes
& Capital Notes
871,513.00
871,513.00
871,513.00
-
-
-
Interest on Bonds
210,450.00
210,450.00
210,437.50
-
-
12.50
Interest on Notes
254,000.00
254,000.00
254,000.00
-
-
-
Green Acres Trust Loan Program:
Principal & Interest
15,547.00
15,547.00
15,545.80
-
-
1.20
Total Municipal Debt Service Excluded
From "CAPS"
2,521,510.00
2,521,510.00
2,521,496.30
-
-
13.70
Deferred Charges - Excluded from "CAPS":
Ordinance 96-10/99-09
250.00
250.00
250.00
-
-
-
Ordinance 99-23
2,230.00
2,230.00
2,230.00
-
-
-
Ordinance 00-05
4,571.00
4,571.00
4,571.00
-
-
-
Ordinance 02-22
80.00
80.00
80.00
-
-
-
Ordinance 09-06
56,833.00
56,833.00
56,833.00
-
-
-
Total Deferred Charges - Municipal -
Excluded from CAPS:
63,964.00
63,964.00
63,964.00
-
-
-
Total General Appropriations Excluded
From "CAPS"
3,661,556.25
3,798,170.12
3,769,455.45
1,896.70
26,804.27
13.70
Subtotal General Appropriations
24,127,839.84
24,264,453.71
22,597,862.94
145,949.70
1,520,627.37
13.70
Reserve For Uncollected Taxes
403,511.85
403,511.85
403,511.85
-
-
-
Total General Appropriations
24,531,351.69
$
24,667,965.56
$
23,001,374.79
$
145,949.70
$
1,520,627.37
$
13.70
$
Adopted Budget
24,531,351.69
$
Added by N.J.S.40A:4-87
136,613.87
Total
24,667,965.56
$
Federal & State Grants
638,661.12
$
Reserve for Uncollected Taxes
403,511.85
Deferred Charges
249,536.59
Refunds
(631,762.20)
Disbursed
22,341,427.43
Total
23,001,374.79
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
APPROPRIATIONS
EXPENDED
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
CURRENT FUND
17
EXHIBIT B
ASSETS
REFERENCE
2019
2018
Assessment Fund:
Cash
B-1
54,096.41
$
54,096.41
$
Total Assessment Fund
54,096.41
54,096.41
Animal Control Trust:
Cash
B-3
21.00
27.00
21.00
27.00
Other Funds:
Cash - Treasurer
B-1
3,300,958.69
4,045,599.12
Cash - Collector
B-2
1,060,581.75
1,475,259.74
Due from Current Fund
A
127.35
-
Total Other Funds
4,361,667.79
5,520,858.86
Total Assets
4,415,785.20
$
5,574,955.27
$
LIABILITIES, RESERVES & FUND BALANCE
Assessment Fund:
Due to Current Fund
B
54,096.41
$
-
$
Fund Balance
B
-
54,096.41
Total Assessment Fund
54,096.41
54,096.41
Animal Control Trust:
Reserve for Dog Fund
21.00
27.00
Total Animal Control Fund
21.00
27.00
Other Funds:
Reserves for:
Deposits for Tax Title Redemptions
B-5
1,060,581.75
1,475,259.74
Escrow Deposits
B-6
1,534,772.82
1,399,244.93
Forfeited Property
B-7
53,885.04
40,920.73
Planning Board
B-8
-
27,715.56
Recreation Trust
B-9
2,057.05
2,057.05
COAH Funds
B-14
166,546.12
301,559.15
Open Space
B-10
1,249,625.00
1,722,985.19
Community Center
B-11
3,582.88
3,582.88
Federal Forfeiture Law Enforcement Funds
B-12
2,978.40
4,265.66
Sick/Vacation Funds
B-13
22,180.48
50,127.87
Police Community Activities
B-15
1,100.00
1,100.00
Police K-9 Equipment Donations
B-16
1,736.08
1,736.08
Police Evidence Deposits
B-17
3,352.80
3,352.80
Veterans Park Donations
B-18
9,600.00
-
POAA Funds
B
648.00
648.00
Due to Current Fund
A
9,021.37
6,303.22
Due to Capital Fund - Open Space Trust
C
240,000.00
480,000.00
Total Other Funds
4,361,667.79
5,520,858.86
Total Liabilities, Reserves & Fund Balance
4,415,785.20
$
5,574,955.27
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
STATEMENT OF ASSETS, LIABILITIES, RESERVES
DECEMBER 31, 2019 AND 2018
AND FUND BALANCE - REGULATORY BASIS
18
EXHIBIT C
REFERENCE
2019
2018
Cash & Cash Equivalents
C-2
2,827,939.09
$
2,389,462.10
$
Due from Open Space Trust
B
240,000.00
480,000.00
Due from NJEIT
C
132,937.00
3,025,961.00
Deferred Charges to Future Taxation:
Funded
C-4
17,213,429.35
12,174,355.25
Unfunded
C-5
13,443,377.17
16,413,854.17
Total Assets
33,857,682.61
$
34,483,632.52
$
Bond Anticipation Notes Payable
C-8
7,214,000.00
$
10,520,000.00
$
General Serial Bond
C-9
12,860,000.00
7,750,000.00
Green Trust Loan Payable
C-10
303,100.35
374,026.25
NJEIT Loan Payable
C
4,050,329.00
4,050,329.00
Capital Improvement Fund
C-6
177,044.00
96,044.00
Encumbrances Payable
C-7
322,823.57
687,951.34
Due To Ocean County - CDBG
C
3,722.00
3,722.00
Improvement Authorizations:
Funded
C-7
944,979.92
2,409,853.30
Unfunded
C-7
7,850,881.55
7,673,708.27
Reserve for Debt Service
C
-
780,233.44
Reserve for Debt Service - Premiums on BANS
C
55,050.69
63,987.00
Fund Balance
C-1
75,751.53
73,777.92
Total Liabilities, Reserves & Fund Balance
33,857,682.61
$
34,483,632.52
$
There were bonds and notes authorized but not issued on December 31, 2019 of $6,229,377.17. and
on December 31, 2018 of $6,551,452.00.
The accompanying Notes to the Financial Statement are an integral part of this Statement.
LIABILITIES, RESERVES & FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ASSETS
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2019 AND 2018
STATEMENT OF ASSETS, LIABILITIES, RESERVES
19
EXHIBIT C-1
Balance December 31, 2018
73,777.92
$
Increased by:
Premium on Sale of Bonds
617,973.61
Sub-Total
691,751.53
Decreased by:
Premium Utilized to Pay Outstanding Notes
616,000.00
Balance December 31, 2019
75,751.53
$
The accompanying Notes to the Financial Statement are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
20
EXHIBIT D
REFERENCE
2019
2018
Cash - Treasurer
D-1
128,033.65
$
212,027.77
$
Total
128,033.65
$
212,027.77
$
Payroll Taxes Payable
D-2
2,680.32
$
84,214.05
$
Due to Current Fund
A
125,353.33
127,813.72
Total
128,033.65
$
212,027.77
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
LIABILITIES
ASSETS
DECEMBER 31, 2019 AND 2018
AND FUND BALANCE - REGULATORY BASIS
PAYROLL FUND
STATEMENT OF ASSETS, LIABILITIES, RESERVES
21
EXHIBIT E
2019
2018
Land and Improvements
7,789,600.00
$
7,789,600.00
$
Building
10,633,720.00
10,473,776.00
Equipment
13,992,736.47
11,932,952.03
Total
32,416,056.47
$
30,196,328.03
$
Investment in Fixed Assets
32,416,056.47
$
30,196,328.03
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
FUND BALANCE
TOWNSHIP OF LITTLE EGG HARBOR
DECEMBER 31, 2019 AND 2018
FUND BALANCE - REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP
STATEMENT OF FIXED ASSETS AND
ASSETS
22
TOWNSHIP OF LITTLE EGG HARBOR
COUNTY OF OCEAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
************
23
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24
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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, 2019
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, 2019
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, 2019
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, 2019
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.
Adopted Accounting Pronouncements
The following GASB Statements became effective for the year ended December 31, 2019:
Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary
objective of this Statement is to provide temporary relief to governments and other stakeholders in light
of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain
provisions in Statements and Implementation Guides that first became effective or are scheduled to
become effective for periods beginning after June 15, 2018, and later.
The following effective dates have been updated to reflect the implementation of Statement No. 95.
Recently Issued Accounting Pronouncements
The GASB has issued the following Statements which will become effective in future years as shown
below:
29
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
Statement No. 83, Certain Asset Retirement Obligations. An asset retirement obligation is a legally
enforceable liability associated with the retirement of a tangible capital asset. Statement No. 83
establishes guidance for determining the timing and pattern of recognition for liabilities and
corresponding deferred outflow of resources related to such obligations. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2019. Management does not expect
this Statement to have a material impact on the Township’s financial statements.
Statement No. 84, Fiduciary Activities. The Statement intends to improve guidance regarding the
identification of fiduciary activities for accounting and financial reporting purposes and how those
activities should be reported. To that end, Statement No. 84 establishes criteria for identifying fiduciary
activities of all state and local governments and clarifies whether and how business-type activities should
report their fiduciary activities. Statement No. 84 is effective for reporting periods beginning after
December 15, 2019. Management does not expect this Statement to have a material impact on the
Township’s financial statements.
Statement No. 87, Leases. Statement No. 87 establishes a single approach to accounting for and reporting
leases by state and local governments. The GASB based the new standard on the principle that leases are
financing of the right to use an underlying asset. Statement No. 87 is effective for reporting periods
beginning after June 15, 2021. Management has not yet determined the potential impact on the
Township’s financial statements.
Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct
Placements. The Governmental Accounting Standards Board (GASB) has issued a new standard with
guidance the GASB believes will enhance debt-related disclosures in notes to financial statements,
including those addressing direct borrowings and direct placements. The new standard clarifies which
liabilities governments should include in their note disclosures related to debt. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2019. This statement had no
material impact on the Township’s financial statements.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The
objectives of this Statement are (1) to enhance the relevance and comparability of information about
capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest
cost incurred before the end of a construction period. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2020. Management does not expect this Statement to
have a material impact on the Township’s financial statements.
Statement No. 90, Majority Equity Interests - an amendment of GASB Statements No. 14 and No. 61. The
primary objectives of this Statement are to improve the consistency and comparability of reporting a
government’s majority equity interest in a legally separate organization and to improve the relevance of
financial statement information for certain component units. It defines a majority equity interest and
specifies that a majority equity interest in a legally separate organization should be reported as an
investment if a government’s holding of the equity interest meets the definition of an investment. A
majority equity interest that meets the definition of an investment should be measured using the equity
method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary
fund, or an endowment (including permanent and term endowments) or permanent fund. Those
governments and funds should measure the majority equity interest at fair value. Statement No. 90 is
effective for reporting periods beginning after December 15, 2019. Management has not yet determined
the potential impact on the Township’s financial statements.
30
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Summary of Significant Accounting Policies (continued):
Statement No. 91, Conduit Debt Obligations, The primary objectives of this Statement are to provide a
single method of reporting conduit debt obligations by issuers and eliminate diversity in practice
associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt
obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the
existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability
of the issuer; establishing standards for accounting and financial reporting of additional commitments and
voluntary commitments extended by issuers and arrangements associated with conduit debt obligations;
and improving required note disclosures. Statement No. 91 is effective for reporting periods beginning
after December 15, 2021. Management has not yet determined the potential impact on the Township’s
financial statements.
Note 2. Deposits and Investments
The Township is governed by the deposit and investment limitations of New Jersey state law.
Deposits
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank
failure, the Township’s deposits may not be returned. Although the Township does not have a formal
policy regarding custodial credit risk, NJSA 17:9-41 et seq. requires that the governmental units shall
deposit public funds in public depositories protected from loss under the provisions of the Governmental
Unit Deposit Protection Act (GUDPA). GUDPA is a supplemental insurance program set forth by the
New Jersey Legislature to protect the deposits of local governmental agencies. The program is
administered by the Commissioner of the New Jersey Department of Banking and Insurance. Under the
Act, the first $250,000 of governmental deposits in each insured depository is protected by FDIC. Public
funds owned by the Township in excess of FDIC insured amounts are protected by GUDPA. However,
GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds or funds that
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, 2019, the Township’s bank balance of $14,531,822.61 was insured or collateralized
as follows:
Insured under FDIC and GUDPA
10,093,954.63
$
Uninsured and Uncollateralized
4,437,867.98
14,531,822.61
$
Investments
The Township had no investments as of December 31, 2019.
Note 3. Property Taxes
The following is a three-year comparison of certain statistical information relative to property taxes and
property tax collections for the current and previous two years.
31
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 3. Property Taxes (continued):
2019
2018
2017
Tax Rate
2.480
$
2.335
$
2.300
$
Apportionment of Tax Rate:
Municipal
0.743
0.674
0.657
County General
0.422
0.418
0.423
Local School
0.594
0.585
0.575
Regional School
0.721
0.658
0.645
Comparison Schedule of Tax Rates
Year
Amount
2019
2,327,945,017.00
$
2018
2,317,505,931.00
2017
2,287,472,584.00
Assessed Valuation
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2019
59,716,900.22
$
59,370,635.81
$
99.42%
2018
56,311,740.99
56,050,262.72
99.53%
2017
55,027,332.99
54,748,254.82
99.49%
Comparison of Tax Levies and Collections
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2019
896,191.57
$
78,738.69
$
974,930.26
$
1.63%
2018
812,765.26
76,581.35
889,346.61
1.58%
2017
647,630.63
63,632.17
711,262.80
1.29%
Delinquent Taxes and Tax Title Liens
32
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 3. Property Taxes (continued):
Year
Number
2019
179
2018
190
2017
135
Number of Tax Title Liens
The last tax sale was held on December 18, 2019.
Note 4. Property Acquired By Tax Title Lien Liquidation
The value of properties acquired by liquidation of tax title liens based on the last assessed valuation of
such properties as of December 31, was as follows:
Year
Amount
2019
5,757,700.00
$
2018
5,757,700.00
2017
5,757,700.00
Note 5. Fund Balances Appropriated
The following schedule details the amount of fund balances available at the end of the current year and
four previous years and the amounts utilized in the subsequent year’s budgets:
Utilized in
Percentage
Balance
Budget of
of Fund
Year
December 31,
Succeeding Year
Balance Used
Current Fund:
2019
1,590,176.07
$
1,300,000.00
$
81.75%
2018
3,884,588.26
2,850,000.00
73.37%
2017
4,796,809.20
2,850,000.00
59.41%
Note 6. Disaggregated Receivable and Payable Balances
There are no significant components of receivable and payable balances reported in the financial
statements.
33
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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, 2019:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
328,471.11
$
127.35
$
State and Federal Grant Fund
-
140,000.00
Trust Other Fund
127.35
249,021.37
Trust Assessment Fund
-
54,096.41
General Capital Fund
240,000.00
-
Payroll Fund
-
125,353.33
568,598.46
$
568,598.46
$
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
2,460.39
$
140,000.00
$
State and Federal Grant Fund
140,000.00
-
Open Space Trust Fund
-
440,000.00
General Capital Fund
440,000.00
-
Payroll Fund
-
2,460.39
582,460.39
$
582,460.39
$
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, 2019.
Balance
Balance
December 31,
December 31,
2018
Additions
2019
Land and Improvements
7,789,600.00
$
-
$
7,789,600.00
$
Buildings
10,689,326.56
159,944.00
10,849,270.56
Machinery & Equipment
11,717,401.47
2,059,784.44
13,777,185.91
30,196,328.03
$
2,219,728.44
$
32,416,056.47
$
34
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations
A. Public Employees’ Retirement System (PERS)
Plan Description - The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PERS, please refer to
Division's
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and
disability benefits. All benefits vest after ten years of service.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4
members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are
available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25 or more years of service
credit before age 62 and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced
by a fraction of a percent for each month that a member retires prior to the age at which a member can
receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive
an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is
available to members who have at least 10 years of service credit and have not reached the service
retirement age for the respective tier.
Basis of Presentation - The schedules of employer and nonemployer allocations and the schedules of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PERS or its participating employers. Accordingly, they
do not purport to be a complete presentation of the financial position or changes in financial position of
PERS or the participating employers. The accompanying Schedules were prepared in accordance with
U.S. generally accepted accounting principles. Such preparation requires management of PERS to make a
number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these
estimates, actual results could differ from those estimates.
Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's pension contribution is based on an actuarially determined amount, which
includes the employer portion of the normal cost and an amortization of the unfunded accrued liability.
Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year
2019, the State's pension contribution was less than the actuarial determined amount. The local
employers' contribution amounts are based on an actuarially determined rate, which includes the normal
35
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of
PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments
due in State fiscal year 2009. Such employers will be credited with the full payment and any such
amounts will not be included in their unfunded liability. The actuaries will determine the unfunded
liability of those retirement systems, by employer, for the reduced normal and accrued liability
contributions provided under this law. This unfunded liability will be paid by the employer in level
annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June
30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended
December 31, 2019, the Township’s contractually required contribution to PERS plan was $520,187.00.
Components of Net Pension Liability - At December 31, 2019, the Township’s proportionate share of
the PERS net pension liability was $9,635,991.00. The net pension liability was measured as of June 30,
2019. The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2018, which
was rolled forward to June 30, 2019. The 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, 2019. The Township’s proportion measured as of June 30, 2019,
was 0.0534783688% which was an increase of 0.0030920588% from its proportion measured as of June
30, 2018.
12/31/2019
12/30/2018
Actuarial valuation date (including roll forward)
June 30, 2019
June 30, 2018
Deferred Outflows of Resources
2,160,702
$
2,532,826
$
Deferred Inflows of Resources
3,793,642
3,673,265
Net Pension Liability
9,635,991
9,920,813
Township's portion of the Plan's total Net Pension Liability
0.05348%
0.05039%
Balances at December 31, 2019 and December 31, 2018
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2019, the
Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2019
measurement date is $731,141.00. 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 $520,187.00 to the plan in 2019.
At December 31, 2019, the Township reported deferred outflows of resources and deferred inflows of
resources related to PERS from the following sources:
36
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
172,953
$
42,568
$
Changes of Assumptions
962,189
3,344,622
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
152,108
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
1,025,560
254,344
2,160,702
$
3,793,642
$
The Township will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
37
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
5.63
-
June 30, 2019
5.21
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
June 30, 2019
-
5.21
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
June 30, 2015
5.72
5.72
June 30, 2016
5.57
5.57
June 30, 2017
5.48
5.48
June 30, 2018
5.63
5.63
June 30, 2019
5.21
5.21
38
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PERS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2020
(155,022)
$
2021
(443,039)
2022
(851,235)
2023
(173,012)
2024
(10,632)
(1,632,940)
$
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through 2026
2.00 - 6.00% Based on Years of Service
Thereafter
3.00 - 7.00% Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 General Classification Headcount weighted mortality
PERS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Pub-2010 Safety Classification Headcount weighted mortality
PFRS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2014 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee
Mortality Table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were
based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%
adjustment for males and 99.7% adjustment for females, and with future improvement from the base year
of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were based on
the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males and
117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2019.
39
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 to June 30, 2018. It is likely that future experience will not
exactly conform to these assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience
deviates, the larger the impact on future financial statements.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2019) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PERS’s target asset allocation as of June
30, 2019 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash Equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S. Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.28% as of June 30,
2019. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.50% as of June 30, 2019 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers will be based on 70% of the actuarially determined contributions for
the State employer and 100% of actuarially determined contributions for the local employers. Based on
those assumptions, the plan’s fiduciary net position was projected to be available to make projected future
40
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
benefit payments of current plan members through 2057. Therefore, the long-term expected rate of return
on plan investments was applied to projected benefit payments through 2057 and the municipal bond rate
was applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the 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 (5.28%) or 1-percentage-point higher (7.28%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.28%)
(6.28%)
(7.28%)
Township's Proportionate Share
of the Net Pension Liability
12,256,498
$
9,635,991
$
7,551,363
$
B. Police and Firemen’s Retirement System (PFRS)
Plan Description – The State of New Jersey, Police and Firemen’s Retirement System (PFRS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PFRS, please refer to
the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death
and disability benefits. All benefits vest after ten years of service, except disability benefits which vest
after four years of service.
The following represents the membership tiers for PFRS:
Tier
Definition
1
Members who were enrolled prior to May 22, 2010.
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1 % for each year if creditable service over 25 years but not to exceed 30 years.
Members may elect deferred retirement benefits after achieving ten years of service, in which case
benefits would begin at age 55 equal to 2% of final compensation for each year of service.
41
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Basis of Presentation - The schedule of employer and nonemployer allocations and the schedule of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PFRS, its participating employers or the State as a
nonemployer contributing entity. Accordingly, they do not purport to be a complete presentation of the
financial position or changes in financial position of PFRS, the participating employers, or the State. The
accompanying Schedules were prepared in accordance with U.S. generally accepted accounting
principles. Such preparation requires management of PFRS to make a number of estimates and
assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results
could differ from those estimates.
Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's contribution amount is based on an actuarially determined rate which includes
the normal cost and unfunded accrued liability. For fiscal year 2019, the State contributed an amount less
than the actuarially determined amount. The Local employers’ contribution amounts are based on an
actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19,
P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued
liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be
credited with the full payment and any such amounts will not be included in their unfunded liability. The
actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced
normal and accrued liability contributions provided under this law. This unfunded liability will be paid by
the employer in level annual payments over a period of 15 years beginning with the payments due in the
fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets.
For the year ended December 31, 2019, the Township’s contractually required contributions to PFRS plan
was $1,376,779.00.
Net Pension Liability and Pension Expense - At December 31, 2019 the Township’s proportionate
share of the PFRS net pension liability was $16,680,126.00. The net pension liability was measured as of
June 30, 2019. The total pension liability used to calculate the net pension liability was determined using
update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2018,
to the measurement date of June 30, 2019. The 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, 2019. The Township’s proportion measured as of
June 30, 2019, was 0.1362998275%, which was an increase of 0.0078988226% from its proportion
measured as of June 30, 2018.
12/31/2019
12/31/2018
Actuarial valuation date (including roll forward)
June 30, 2019
June 30, 2018
Deferred Outflows of Resources
2,320,719
$
2,715,963
$
Deferred Inflows of Resources
6,137,099
5,186,915
Net Pension Liability
16,680,126
17,374,773
Township's portion of the Plan's total net pension Liability
0.13630%
0.12840%
Balances at December 31, 2019 and Decmber 31, 2018
42
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2019, the
Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2019
measurement date was $2,027,560.00. 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 $1,376,779.00 to the plan in 2019.
At December 31, 2019, 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
140,802
$
105,605
$
Changes of Assumptions
571,552
5,390,864
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
226,010
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
1,608,365
414,620
2,320,719
$
6,137,099
$
The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
43
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
-
5.53
June 30, 2016
-
5.58
June 30, 2017
5.59
-
June 30, 2018
5.73
-
June 30, 2019
-
5.92
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
June 30, 2019
-
5.92
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
-
5.00
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.17
6.17
June 30, 2015
5.53
5.53
June 30, 2016
5.58
5.58
June 30, 2017
5.59
5.59
June 30, 2018
5.73
5.73
June 30, 2019
5.92
5.92
44
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PFRS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2020
(887,756)
$
2021
(1,159,994)
2022
(1,016,945)
2023
(615,428)
2024
(136,257)
(3,816,380)
$
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 $2,633,824.00 as of December 31, 2019. The net pension liability was measured as of June
30, 2019. The total pension liability used to calculate the net pension liability was determined using
update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2018,
to the measurement date of June 30, 2019. The State’s proportion of the net pension liability associated
with the 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, 2019 was 0.1362998275%, which was an increase of
0.0078988226% from its proportion measured as of June 30, 2018, which is the same proportion as the
Township’s. At December 31, 2019, 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
16,680,126
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Township
2,633,824
19,313,950
$
45
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
At December 31, 2019, the State’s proportionate share of the PFRS expense, associated with the
Township, calculated by the plan as of the June 30, 2019 measurement date was $306,029.00.
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 - 15.25%
Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 General Classification Headcount weighted mortality
PERS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Pub-2010 Safety Classification Headcount weighted mortality
PFRS
with fully generational mortality improvement projections
from the central year using Scale MP-2019
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2013 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table with a
105.6% adjustment for males and 102.5% adjustment for females, and with future improvement from the
base year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010
Safety Retiree Below-Median Income Weighted mortality table with a 96.7% adjustment for males and
96.0% adjustment for females, and with future improvement from the base year of 2010 on a generational
basis. For beneficiaries (contingent annuitants), the Pub-2010 General Retiree Below-Median Income
Weighted mortality table was used, unadjusted, and with future improvement from the base year of 2010
on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled Retiree mortality
table with a 152.0% adjustment for males and 109.3% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Mortality improvement is based on
Scale MP-2019.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 to June 30, 2018.
46
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2019) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PFRS’s target asset allocation as of June
30, 2019 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash Equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S. Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.85% as of June 30,
2019. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.50% as of June 30, 2019 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers and the nonemployer contributing entity will be based on 70% of the
actuarially determined contributions for the State employer and 100% of actuarially determined
contributions for local employers. Based on those assumptions, the plan’s fiduciary net position was
projected to be available to make projected future benefit payments of current plan members through
2076. Therefore, the long-term expected rate of return on plan investments was applied to projected
benefit payments through 2076 and the municipal bond rate was applied to projected benefit payments
after that date in determining the total pension liability.
Sensitivity of the 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 (5.85%) or 1-percentage-point higher (7.85%) than the current rate:
47
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
1%
Current
1%
Decrease
Discount Rate
Increase
(5.85%)
(6.85%)
(7.85%)
Township's Proportionate Share
of the Net Pension Liability
22,545,452
$
16,680,126
$
11,825,724
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Township
3,559,970
2,633,824
1,867,305
26,105,422
$
19,313,950
$
13,693,029
$
Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued
by the Township.
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:
2019
2018
2017
Issued:
General:
Bonds, Notes and Loans
24,427,429.35
$
22,694,355.25
$
13,667,554.31
$
Total Debt Issued
24,427,429.35
22,694,355.25
13,667,554.31
Authorized but not issued:
General:
Bonds, Notes and Loans
6,229,377.17
6,551,452.00
8,271,629.00
Total Authorized But Not Issued
6,229,377.17
6,551,452.00
8,271,629.00
Total Gross Debt
30,656,806.52
$
29,245,807.25
$
21,939,183.31
$
Deductions:
General:
Funds on Hand For Payment
of Bonds and Notes:
Reserve for Debt Service
55,050.69
1,437,831.27
-
Total Deductions
55,050.69
1,437,831.27
-
Total Net Debt
30,601,755.83
$
27,807,975.98
$
21,939,183.31
$
48
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 10. Municipal Debt (continued):
Summary of Statutory Debt Condition - Annual Debt Statement
The following schedule is a summary of the previous schedule and is prepared in accordance with the
required method of setting up the Annual Debt Statement:
Gross Debt
Deductions
Net Debt
Local School Debt
18,855,000.00
$
18,855,000.00
$
-
$
Regional School Debt
42,758,881.86
42,758,881.86
-
General Debt
30,656,806.52
55,050.69
30,601,755.83
92,270,688.38
$
61,668,932.55
$
30,601,755.83
$
Net Debt $30,601,755.83 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as
amended, $2,392,038,754.67, equals 1.279%. New Jersey statute 40A:2-6, as amended, limits the debt of
a Municipality to 3.5% of the last three preceding year’s average equalized valuations of real estate,
including improvements and the assessed valuation of Class II Railroad Property. The remaining
borrowing power in dollars at December 31, 2019 is calculated as follows:
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
83,721,356.41
$
Net Debt
30,601,755.83
Remaining Borrowing Power
53,119,600.58
$
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.
On August 1, 2019, the Township issued $6,280,000 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates varying from 3.00% to 4.00% and mature on August 15,
2028.
Principal and interest due on the outstanding bonds are as follows:
49
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 10. Municipal Debt (continued):
Year
Principal
Interest
Total
2020
$ 1,570,000.00 $ 397,010.83 $ 1,967,010.83
2021
1,620,000.00 350,050.00 1,970,050.00
2022
1,595,000.00 292,925.00 1,887,925.00
2023
1,775,000.00 245,325.00 2,020,325.00
2024
1,370,000.00 188,950.00 1,558,950.00
2025-2028 4,930,000.00 320,250.00 5,250,250.00
12,860,000.00
$
1,794,510.83
$
14,654,510.83
$
B. Bond Anticipation Notes Payable – Short Term Debt
The following is a summary of bond anticipation notes payable accounted for in the General Capital Fund
at December 31, 2019:
Balance
Date of
Date of
December 31,
Description
Issue
Maturity
Rate
2019
Series 2019 A
8/1/2019
4/15/2020
2.000%
7,214,000.00
$
7,214,000.00
$
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, 2019, the Township had $6,229,377.17 in various General Capital bonds and notes
authorized but not issued.
D. Loans Payable
As of December 31, 2019, the Township had $303,100.35 in Green Trust Loans Payable outstanding.
Principal and interest due on the loans payable are as follows:
50
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 10. Municipal Debt (continued):
Year
Principal
Interest
Total
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
29,882.07 1,209.73 31,091.80
2025-2026 38,024.76 838.02 38,862.78
303,100.35
$
16,559.58
$
319,659.93
$
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.
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
2018
Increases
Decreases
2019
One Year
General Capital:
General Bonds
7,750,000.00
$
6,280,000.00
$
1,170,000.00
$
12,860,000.00
$
1,570,000.00
$
Bond Anticipation Notes
10,520,000.00
16,825,000.00
20,131,000.00
7,214,000.00
7,214,000.00
Green Trust Loans
374,026.25
-
70,925.90
303,100.35
72,351.78
NJEIT Loan Payable
4,050,329.00
-
-
4,050,329.00
-
22,694,355.25
$
23,105,000.00
$
21,371,925.90
$
24,427,429.35
$
8,856,351.78
$
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
2019
2018
Total Balance of Local Tax
7,098,890.00
$
6,440,929.46
$
Deferred Taxes
5,236,297.00
5,236,297.00
Local Tax Payable
1,862,593.00
$
1,204,632.46
$
Balance, December 31,
51
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 12. Deferred Compensation Salary Account
The Township offers its employees a Deferred Compensation Plan in accordance with Internal Revenue
Code Section 457 which has been approved by the Director of the Division of Local Government
Services. The Plan, available to all full time employees at their option, permits employees to defer a
portion of their salary to future years. The deferred compensation is not available to participants until
termination, retirement, death or unforeseeable emergency. Amounts deferred under Section 457 plans
must be held in trust for the exclusive benefits of participating employees and not be accessible by the
Township or its creditors. Since the Township does not have a fiduciary relationship with the Plan, the
balances and activities of the Plan are not reported in the Township’s financial statements.
Note 13. Accrued Sick, Vacation and Compensation Time
As discussed in Note 1 and in accordance with accounting principles prescribed by the State of New
Jersey, the cash basis of accounting is followed for recording the Township’s liability related to unused
vacation, sick pay and compensation time. The Township permits certain employees within limits to
accumulate unused vacation, sick pay and compensation time, which may be taken as time off or paid at a
later date at an agreed upon rate. In accordance with New Jersey accounting principles, this unused
accumulated absences amount is not reported as a liability in the accompanying financial statements. It is
estimated that accrued benefits for compensated absences are valued at $2,410,323.71 at December 31,
2019.
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, 2019, the Township has reserved in the
Other Trust Fund $22,180.48 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, 2019 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, 2019.
52
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 15. Postemployment Benefits Other Than Pensions – State Plan
General Information about the OPEB Plan
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple-
employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It
covers employees of local government employers that have adopted a resolution to participate in the Plan.
For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be
found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally
administered retirement system and a period of service of up to 25 years with the employer at the time of
retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of
service with the employer. Further, the law provides that the employer paid obligations for retiree
coverage may be determined by means of a collective negotiations agreement.
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.
53
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 15. Postemployment Benefits Other Than Pensions – State Plan (continued):
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate
share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred
inflows of resources, and collective OPEB (benefit) expense. The special funding situation’s and
nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of
resources, and OPEB (benefit) expense are based on separately calculated total OPEB liabilities. For the
special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year
ended June 30, 2019 were $5,525,718,739.00 and $6,213,844,492.00, respectively. The nonspecial
funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and
OPEB (benefit) expense are further allocated to employers based on the ratio of the plan members of an
individual employer to the total members of the Plan’s nonspecial funding situation during the
measurement period July 1, 2018 through June 30, 2019. Employer and nonemployer allocation
percentages have been rounded for presentation purposes; therefore, amounts presented in the schedule of
OPEB amounts by employer and nonemployer may result in immaterial differences.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local
police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for
the category of coverage elected by the qualified retiree under the State managed care plan or a health
maintenance organization participating in the program providing the lowest premium or periodic charge.
The State also provides funding for retiree health benefits to survivors of local police officers and
firefighters who die in the line of duty under Chapter 271, P.L.1989.
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
$8,340,851.00 as of December 31, 2019. The OPEB liability was measured as of June 30, 2019. The total
OPEB liability used to calculate the OPEB liability was determined using update procedures to roll
forward the total OPEB liability from an actuarial valuation as of July 1, 2018, to the measurement date
of June 30, 2019. The State’s proportion of the OPEB liability associated with the Township was based
54
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 15. Postemployment Benefits Other Than Pensions – State Plan (continued):
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, 2019 was 0.1509459926%, which was a decrease of 0.0074150029% from its
proportion measured as of June 30, 2018, which is the same proportion as the Township’s. At December
31, 2019, the Township’s and the State of New Jersey’s proportionate share of the OPEB liability were as
follows:
State of New Jersey's
Proportionate Share of OPEB Liability
Associated with the Township
8,340,851.00
$
At December 31, 2019, the State’s proportionate share of the OPEB expense, associated with the
Township, calculated by the plan as of the June 30, 2019 measurement date was $110,560.00.
Note 16. Postemployment Benefits Other Than Pensions – Local Plan
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:
Participant Data
Amount
Active Employees
116
Retired Employees
36
Total Membership Count
152
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, 2019 of $24,057,378.00 is measured
at December 31, 2018 as allowed under GASB 75.
55
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 16. Postemployment Benefits Other Than Pensions – Local Plan (continued):
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:
Actuarial Cost Method
Entry Age Normal
Discount Rate
Based on S&P Municipal Bond 20 Year High-Grade Bond Index Rate
of 3.26% as of 12/31/2019
Inflation Rate
3.00%
Salary Increases
3.00%
Health Care Cost Trend
8.00% Decreasing to 5.00% ultimate
Rates of Mortality
RP 2014 w/ MP 2016 projection
Rates of Retirement
Rates start at age 55 & 10 years or 20 years
Rates of Disability
None assumed
Retiree Participation
100.00% of eligible retirees are assumed to elect to participate in the plan
Investment Rate of Return
3.26%
Asset Valuation Method
Market
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, 2019, the discount rate utilized was 3.26%.
Changes in the Total OPEB Liability – The changes to the total OPEB Liability during the year ending
December 31, 2019 were as follows:
56
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 16. Postemployment Benefits Other Than Pensions – Local Plan (continued):
Total OPEB Liability
Balance, January 1, 2019
22,979,322.00
$
Changes for the Year:
Service Cost
550,776.00
Interest Cost
817,098.00
Changes of Assumptions
769,839.00
Difference between Actual and Expected
3,507.00
Benefits Paid (implicit)
(1,063,164.00)
Net Changes
1,078,056.00
Balance, December 31, 2019
24,057,378.00
$
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 (2.26
percent) or 1-percentage pointer higher (4.26 percent) that the current discount rate:
At 1%
At Discount
At 1%
Decrease (2.26%)
Rate (3.26%)
Increase (4.26%)
Total OPEB Liability
26,082,440.00
$
24,057,378.00
$
22,032,317.00
$
December 31, 2019
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:
Healthcare Cost
1% Decrease
Trend Rate *
1% Increase
Total OPEB Liability
21,601,028.00
$
24,057,378.00
$
26,973,911.00
$
December 31, 2019
57
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 16. Postemployment Benefits Other Than Pensions – Local Plan (continued):
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2019, the Township’s OPEB expense was estimated to be $813,939.00.
At December 31, 2019, the Township reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected and
Actual Experience
121,084.00
$
-
$
Changes of Assumptions
692,855.00
-
Net Difference Between Projected and
Actual Eearnings of OPEB Plan Investments
-
-
813,939.00
$
-
$
Amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Fiscal Year
Ending June 30,
2020
92,076.00
$
2021
92,076.00
2022
92,076.00
2023
92,076.00
2024
92,076.00
Thereafter
353,559.00
813,939.00
$
58
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Other Supplementary Information
Schedule of Changes in the Township's Total OPEB Liability and Related Ratios
2019
2018
2017
Total OPEB Liability
Service Cost
550,776.00
$
504,373.00
$
N/A
Interest
817,098.00
802,997.00
Difference Between Expected and Actual Experience
3,507.00
147,410.00
Changes in Assumptions
769,839.00
-
Benefit Payments
(1,063,164.00)
(1,071,644.00)
Net Change in Total OPEB Liability
1,078,056.00
383,136.00
Total OPEB Liability - Beginning
22,979,322.00
22,596,186.00
Total OPEB Liability - Ending
24,057,378.00
$
22,979,322.00
$
Total Covered Employee Payroll
10,213,028.00
$
10,309,945.00
$
Net OPEB Liability as a Percentage of Payroll
235.56%
222.89%
Fiscal Year Ending December 31,
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, 2019 the Current Fund has
recorded a loan payable in the amount of $4,250,000.00 with $143,718.04 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,
2019 and August 25, 2020, the date that the financial statements were available for issuance, for possible
disclosure and recognition in the financial statements. Other than the following, no items have come to
the attention of the Township that would require disclosure.
59
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 18. Subsequent Events (continued):
COVID-19
COVID-19, a respiratory disease caused by a new strain of coronavirus, has been characterized as a
pandemic by the World Health Organization and is currently affecting many parts of the world, including
the United States and the State of New Jersey. On January 31, 2020, the Secretary of the United States
Health and Human Services Department declared a public health emergency for the United States and, on
March 13, 2020, the President of the United States declared the outbreak of COVID-19 in the United
States a national emergency. Subsequently, the President's Coronavirus Guidelines for America and the
United States Centers for Disease Control and Prevention called upon Americans to take actions to slow
the spread of COVID-19 in the United States.
In New Jersey, Governor Murphy by way of executive orders, has ordered, among other things: all State
residents to remain home or at their place of residence unless they meet one or more enumerated
exceptions; all State residents to practice social distancing; gatherings of individuals, such as parties,
celebrations and social events, are cancelled; non-essential businesses to cease operations from 8:00 p.m.
to 5:00 a.m.; all restaurants and bars to close except for delivery or takeout services; casinos, racetracks,
gyms and fitness centers and entertainment centers to close; all county and municipal libraries to close; all
business and non-profits to accommodate telework or work-from-home arrangements; the cessation of all
non-essential construction projects; an extension of insurance premium grace periods; all Pre-K through
12 schools to close; all universities and colleges in the State to cease in-person instruction; The Township
expects ongoing actions will be taken by State, federal and local governments and private entities to
mitigate the spread of and impacts of COVID-19.
The Township cannot reasonably predict how long the outbreak may impact the financial condition or
operations of the Township, whether there will be any impact on the assessed values of property within
the Township or the deferral of tax payments to the Township or the costs associated with this or any
other potential infectious disease outbreak, including whether there will be any reduction in State funding
or an increase in operational costs of the Township.
On March 24, 2020, the Division of Local Government Services in the New Jersey Department of
Community Affairs extended the date for introduction of municipal budgets to April 28, 2020 (or the next
regularly scheduled governing body meeting thereafter) and the date for municipal budget adoption to
May 30, 2020 (or the next regularly scheduled governing body meeting thereafter). The New Jersey
Legislature is considering legislation that, if enacted, would permit the extension of any additional
deadlines under the Local Budget Law, the Local Fiscal Affairs Law and the laws with respect to the
issuance of tax bills. Such proposed legislation would also permit municipalities to institute an extended
grace period for the receipt of property tax payments and to extend the dates for the payment of taxes by a
municipality due to a county, a school district or any other taxing district. A proposed amendment to
such proposed legislation would also provide that any shortfall in the property tax payments received by
the municipality would be borne pro rata by the municipality, the county and the school district(s). There
can be no assurance that this legislation, or any other actions, will be enacted by the New Jersey
Legislature. The Township does not plan to issue any updates or revisions regarding this legislation, or
any other actions enacted by the New Jersey Legislature, if or when such legislation or other actions are
enacted.
Bond Ordinances
On March 12, 2020 the Township adopted Ordinance 2020-02, providing for paving and improvements to
various roads in and for the Township, appropriating $220,000.00 therefor and providing for the issuance
60
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 18. Subsequent Events (continued):
of $209,000.00 in bonds or notes. Of the amounts appropriated, $11,000.00 will be provided by the
Capital Improvement Fund.
On March 12, 2020 the Township adopted Ordinance 2020-03, providing for improvements to the
community center in and for the Township, appropriating $65,000.00 therefor and providing for the
issuance of $61,750.00 in bonds or notes. Of the amounts appropriated, $3,250.00 will be provided by the
Capital Improvement Fund.
Bond Issuances
On July 1, 2020 the Township issued general obligation assessment bonds in the amount of
$3,750,000.00. Payments come due in the amounts of $375,000.00 beginning July 15, 2021 and mature
on July 15, 2030. Interest rates on the maturities range from 2.00%-4.00%.
61
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62
SUPPLEMENTARY EXHIBITS
63
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64
CURRENT FUND
65
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66
EXHIBIT A-4
Balance December 31, 2018
6,246,638.44
$
384,070.47
$
Increased by Receipts:
Taxes Receivable
58,419,403.90
$
-
$
Tax Title Liens Receivable
59,664.01
-
Due From State - Senior Citizen &
Veteran Deductions
295,050.88
-
Revenue Accounts Receivable
3,132,014.27
-
Miscellaneous Revenue Not Anticipated
264,153.22
-
Prepaid Taxes
705,318.70
-
Tax Overpayments
247,118.26
-
Refunds of Current Year Appropriations
631,762.20
-
Due Bass River
3,312.70
-
Construction Fees Due State of New Jersey
26,634.00
-
Received from Capital Fund
844,220.44
-
Interfund Transfers
4,540.00
Transferred from Current Fund
-
145,322.00
Federal & State Grants Unappropriated
-
3,245.00
Federal & State Grants Receivable
-
1,415,330.28
Total Receipts
64,633,192.58
1,563,897.28
Subtotal
70,879,831.02
1,947,967.75
Decreased by Disbursements:
2019 Appropriations
22,341,427.43
-
Appropriation Reserves
425,155.56
-
County Taxes Payable
9,805,867.71
-
Due County for Added & Omitted Taxes
84,984.54
-
Local District School Tax
13,168,740.46
-
Regional High School Tax
16,215,290.19
-
Special District Taxes
1,629,856.00
-
Municipal Open Space Taxes
23,279.45
Construction Fees Due State of NJ
27,202.00
-
Bass River Construction Fees
2,821.60
-
Reserve for Mercantile Licenses
2,350.00
-
Due to State - Marriage Licenses
725.00
-
Reserve for Debt Service -Green Trust
7,772.89
Refund Tax Overpayments
400,934.25
-
Prior Year Refunds
543.50
Due from State & Federal Grant Fund
145,322.00
-
Encumbrances Payable
-
2,282.94
Federal & State Grants - Appropriated
-
1,891,273.79
Total Disbursements
64,282,272.58
1,893,556.73
Balance December 31, 2019
6,597,558.44
$
54,411.02
$
CURRENT FUND
GRANT FUND
STATE & FEDERAL
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2019
67
EXHIBIT A-5
BALANCE
SENIOR
TRANSFERRED
BALANCE
DECEMBER 31,
2019
ADDED
CITIZENS &
OVERPAYMENT
OVERPAYMENT
TO TAX
DECEMBER 31,
YEAR
2019
LEVY
TAXES
2018
2019
VETERANS
APPLIED
CREATED
CANCELED
TITLE LIENS
2019
2009
4.65
$
-
$
721.85
$
-
$
721.85
$
-
$
-
$
-
$
-
$
-
$
4.65
$
2010
5.01
-
4,314.37
-
4,314.37
-
-
-
-
-
5.01
2011
5.16
-
4,438.45
-
4,438.45
-
-
-
-
-
5.16
2012
1,252.58
-
4,191.94
-
4,191.94
-
-
-
-
-
1,252.58
2013
2,512.40
-
4,354.71
-
4,354.71
-
-
-
-
-
2,512.40
2014
3,617.64
-
4,508.05
-
5,081.13
(750.00)
1,705.64
20,975.97
19,520.33
250.00
3,294.56
2015
5,355.74
-
4,878.23
-
7,755.37
(1,500.00)
25,595.73
63,909.57
38,563.84
250.00
3,478.60
2016
16,453.20
-
4,819.50
-
10,330.99
(1,500.00)
71,439.84
131,279.19
57,433.27
250.00
14,597.79
2017
18,630.52
-
4,781.03
-
19,454.83
(1,500.00)
138,795.49
236,250.55
87,921.37
250.00
14,740.41
2018
28,744.45
-
-
-
17,693.70
(5,943.84)
237,191.73
362,854.57
127,324.60
250.00
15,082.83
Total
76,581.35
-
37,008.13
-
78,337.34
(11,193.84)
474,728.43
815,269.85
330,763.41
1,250.00
54,973.99
2019
-
59,381,455.60
335,444.62
679,278.79
58,341,066.56
297,291.09
383,328.01
330,328.64
181,113.64
141,386.07
23,764.70
Total
76,581.35
$
59,381,455.60
$
372,452.75
$
679,278.79
$
58,419,403.90
$
286,097.25
$
858,056.44
$
1,145,598.49
$
511,877.05
$
142,636.07
$
78,738.69
$
Tax Yield:
General Property Tax
57,751,599.60
$
Special District
1,629,856.00
Added Taxes (54:4-63.1 et. seq.)
335,444.62
59,716,900.22
$
Total Tax Yield
59,716,900.22
$
Tax Levy:
Local School District Tax (Abstract)
13,826,701.00
$
Regional High School Tax (Abstract)
16,790,527.00
Municipal Open Space (Abstract)
23,279.45
Municipal Open Space (Added)
127.35
County Taxes:
County Tax (Abstract)
8,214,399.53
$
County Library Tax (Abstract)
904,533.73
County Health Services (Abstract)
398,711.17
County Open Space
288,223.28
Due County for Added Taxes (54:4-63,1 et.seq.)
53,573.75
Total County Taxes
9,859,441.46
Fire District #1 (Amount Certified)
623,171.00
Fire District #2 (Amount Certified)
552,685.00
Fire District #3 (Amount Certified)
454,000.00
Total Special District Taxes
1,629,856.00
Local Tax for Municipal Purposes
17,273,431.59
Add: Additional Tax Levied
313,536.37
17,586,967.96
Total Tax Levy
59,716,900.22
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
COLLECTED
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
ANALYSIS OF 2019 PROPERTY TAX LEVY:
68
EXHIBIT A-6
Balance December 31, 2018
812,765.26
$
Increased by:
Transfers from Taxes Receivable
142,636.07
$
Adjustment
(585.21)
Interest & Costs Accrued by Sale
1,039.46
143,090.32
Subtotal
955,855.58
Decreased by:
Collections
59,664.01
Balance December 31, 2019
896,191.57
$
EXHIBIT A-7
Balance December 31, 2018 & 2019
5,757,700
$
SCHEDULE OF PROPERTY ACQUIRED FOR TAXES
(AT ASSESSED VALUATION)
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF TAX TITLE LIENS
69
EXHIBIT A-8
BALANCE
BALANCE
DECEMBER 31,
ACCRUED IN
DECEMBER 31,
2018
2019
TREASURER
2019
Miscellaneous Revenue Anticipated:
Licenses - Alcoholic Beverages
-
$
10,564.00
$
10,564.00
$
-
$
Fees & Permits
-
182,633.50
182,633.50
-
Municipal Court
12,525.96
213,545.54
213,629.83
12,441.67
Interest & Costs on Taxes
-
182,702.53
182,702.53
-
Payments in Lieu of Taxes
-
97,121.13
97,121.13
-
Energy Receipts Tax
-
1,299,939.00
1,299,939.00
-
Garden State Trust
-
149,117.00
149,117.00
-
Uniform Construction Code Fees
-
466,845.40
466,845.40
-
Tower Rental
-
208,410.41
208,410.41
-
SRO Officer
-
237,128.80
237,128.80
-
Cable TV
-
83,922.67
83,922.67
-
Total
12,525.96
$
3,131,929.98
$
3,132,014.27
$
12,441.67
$
Cash Receipts
3,132,014.27
$
Total
3,132,014.27
$
TOWNSHIP OF LITTLE EGG HARBOR
FOR THE YEAR ENDED DECEMBER 31, 2019
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
CURRENT FUND
70
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2018
TRANSFERS
CHARGED
LAPSED
General Government:
General Administration:
Salaries and Wages
30.84
$
30.84
$
-
$
30.84
$
Other Expenses
629.10
629.10
-
629.10
Mayor and Committee:
Salaries and Wages
72.91
72.91
-
72.91
Other Expenses
887.19
911.19
24.00
887.19
Municipal Clerk:
Salaries and Wages
244.01
244.01
-
244.01
Other Expenses
4,374.82
1,440.87
315.38
1,125.49
Financial Administration (Treasury):
Salaries and Wages
34.68
34.68
-
34.68
Other Expenses
681.88
1,518.60
1,429.97
88.63
Audit Services:
Other Expenses
36,855.25
36,855.25
36,855.25
-
Revenue Administration (Tax Collection):
Salaries and Wages
852.92
852.92
-
852.92
Other Expenses:
Tax Sale Costs
6,374.16
2,443.66
325.50
2,118.16
Miscellaneous Other Expenses
834.75
1,432.31
688.28
744.03
Tax Assessment Administration:
Salaries and Wages
1,707.50
1,707.50
-
1,707.50
Other Expenses
940.74
2,320.69
1,379.95
940.74
Legal Services (Legal Department):
Other Expenses
23,572.66
34,627.66
34,625.01
2.65
Engineering Services:
Other Expenses
9,742.75
15,667.75
14,194.50
1,473.25
Land Use Administration:
Planning Board:
Salaries and Wages
2,100.00
100.00
-
100.00
Other Expenses
615.00
615.00
-
615.00
Zoning Board of Adjustment:
Salaries and Wages
1,000.00
-
-
-
Other Expenses
1,229.62
1,229.62
952.88
276.74
Zoning Officer:
Salaries and Wages
241.48
241.48
-
241.48
Other Expenses
699.82
959.82
260.00
699.82
Insurance:
Group Insurance for Employees
20,624.67
5,624.67
5,258.00
366.67
Health Benefit Waiver
1,463.39
38.39
-
38.39
Unemployment Insurance
5,109.13
5,109.13
-
5,109.13
Other Insurance: JIF, Surety WC
411.51
411.51
-
411.51
Public Safety Functions:
Police Department:
Salaries and Wages
6,891.55
391.55
-
391.55
Other Expenses
21,761.25
59,375.86
56,521.69
2,854.17
Office of Emergency Management:
Other Expenses
200.00
200.00
-
200.00
First Aid Squad Contribution
70,000.00
70,000.00
70,000.00
-
Municipal Prosecutor:
Other Expenses
5,000.00
5,000.00
-
5,000.00
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2019
71
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2018
TRANSFERS
CHARGED
LAPSED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2019
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages
671.56
671.56
-
671.56
Other Expenses
1,401.45
6,442.01
6,405.31
36.70
Solid Waste Sanitation:
Salaries and Wages
1,029.98
1,029.98
-
1,029.98
Other Expenses
6,880.77
18,641.54
17,394.70
1,246.84
Solid Waste Recycling:
Salaries and Wages
751.35
751.35
-
751.35
Other Expenses
8,503.54
4,029.79
3,751.06
278.73
Buildings & Grounds:
Salaries and Wages
1,364.54
214.54
-
214.54
Other Expenses
510.33
13,983.16
13,474.33
508.83
Vehicle Maintenance:
Salaries and Wages
5,325.04
1,245.04
-
1,245.04
Other Expenses
947.42
20,839.97
20,520.45
319.52
Municipal Services Act:
Other Expenses
44,862.48
44,862.48
17,517.94
27,344.54
County Mosquito Control Agency:
Other Expenses
724.62
724.62
-
724.62
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
1,200.00
1,200.00
-
1,200.00
Other Expenses
457.57
457.57
-
457.57
Environmental Health Services:
Salaries and Wages
400.00
400.00
-
400.00
Other Expenses
35.00
35.00
-
35.00
Animal Control Services:
Other Expenses
3,497.00
4,154.00
939.00
3,215.00
Contributions to Social Service Agencies - Statutory:
Providence House
1,000.00
1,000.00
-
1,000.00
On-Point
20,000.00
20,000.00
20,000.00
-
Park & Recreation Functions:
Recreation Services & Programs:
Salaries and Wages
660.47
660.47
-
660.47
Other Expenses
324.00
1,564.18
1,240.18
324.00
Senior Center/Community Activities:
Other Expenses
1,353.80
1,353.80
-
1,353.80
Utility Expenses & Bulk Purchases:
Electricty
16,606.58
16,606.58
13,829.87
2,776.71
Street Lighting
32,086.23
33,189.39
30,401.38
2,788.01
Telephone
9,413.11
14,765.49
14,754.68
10.81
Gasoline
335.02
5,481.64
5,146.62
335.02
Natural Gas
13,949.65
35,791.62
33,240.63
2,550.99
Uniform Construction Code Enforcement Functions:
Construction Code Official:
Salaries and Wages
722.06
722.06
-
722.06
Other Expenses
1,058.20
1,058.20
-
1,058.20
Municipal Court:
Salaries and Wages
2,940.84
2,940.84
-
2,940.84
Other Expenses
1,187.66
4,017.52
4,017.52
-
Public Defender:
Other Expenses
4,140.00
4,140.00
3,063.50
1,076.50
72
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2018
TRANSFERS
CHARGED
LAPSED
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2019
Other Common Operating Functions (Unclassified):
Municipal Alliance Counsil
1,158.99
1,158.99
-
1,158.99
Reserve for Disputed Contracts
34.68
34.68
-
34.68
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Social Security System (O.A.S.I.)
5,613.65
5,613.65
-
5,613.65
Defined Contributions Retirement Program
710.33
710.33
-
710.33
Police and & Firemens Pension Fund
23.49
23.49
-
23.49
Public Employees Retirement System
17.86
17.86
-
17.86
Operations Exlcuded From "CAPS"
Police Dispatch/911:
Salaries and Wages
5,883.35
5,883.35
-
5,883.35
Other Expenses
4,500.00
4,500.00
1,735.80
2,764.20
Total
427,466.20
$
531,003.72
$
430,263.38
$
100,740.34
$
Appropriation Reserves
427,466.20
$
Reserve for Encumbrances
103,537.52
531,003.72
$
Accounts Payable
5,107.82
$
Cash Disbursements
425,155.56
430,263.38
$
73
EXHIBIT A-10
Balance December 31, 2018
School Tax Deferred
5,236,297.00
$
School Tax Payable
1,204,632.46
6,440,929.46
Increased by Levy:
School Year July 1, 2019 - June 30, 2020
13,826,701.00
Subtotal
20,267,630.46
Decreased by:
Payments
13,168,740.46
Subtotal
7,098,890.00
Balance December 31, 2019
School Tax Deferred
5,236,297.00
School Tax Payable
1,862,593.00
Balance December 31, 2019
7,098,890.00
$
2019 Payments
13,168,740.46
$
Less School Taxes Payable at December 31, 2018
(1,204,632.46)
Plus School Taxes Payable at December 31, 2019
1,862,593.00
Amount Charged to 2019 Operation
13,826,701.00
$
EXHIBIT A-11
Balance December 31, 2018 (Prepaid)
(103,812.29)
$
Increased by:
Levy - Calendar Year 2019
16,790,527.00
Subtotal
16,686,714.71
Decreased by:
Payments
16,215,290.19
Balance December 31, 2019
471,424.52
$
SCHEDULE OF REGIONAL HIGH SCHOOL TAX PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT TAX
FOR THE YEAR ENDED DECEMBER 31, 2019
ANALYSIS OF AMOUNT CHARGED TO OPERATIONS
74
EXHIBIT A-12
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2018
INCREASED
DECREASED
2019
Reserve for Sandy Insurance Proceeds
2,419.00
$
-
$
-
$
2,419.00
$
Reserve for Closed Escrow Accounts
54,052.92
-
-
54,052.92
Reserve for Retail Mercantile Licenses
2,700.00
-
2,350.00
350.00
Reserve for Debt Service -Green Trust
7,772.89
-
7,772.89
-
Reserve for Reassessment
100,047.00
-
-
100,047.00
Reserve for FEMA Proceeds
3,722.78
-
-
3,722.78
170,714.59
$
-
$
10,122.89
$
160,591.70
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF VARIOUS RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2019
75
EXHIBIT A-13
BALANCE
TRANSFERRED
BALANCE
DECEMBER 31,
ANTICIPATED
FROM
DECEMBER 31,
GRANT
2018
REVENUE
RECEIVED
UNAPPROPRIATED
CANCELLED
2019
NJOEM Grant
6,203.35
$
-
$
-
$
-
$
-
$
6,203.35
$
Safe & Secure Communities Program
25,000.00
-
25,000.00
-
-
-
CDBG - 2015
19,226.71
-
-
-
-
19,226.71
966 Reimbursement Grant
9,376.42
-
-
-
-
9,376.42
Neighborhood Communitiy Revitalization Grant
2,464.22
-
-
-
-
2,464.22
Child Restraint Grant
2,500.00
-
-
-
-
2,500.00
NJDOT Municipal Aid Program - 2018
350,000.00
-
262,500.00
-
-
87,500.00
National Fish & Wildlife
1,208,225.41
-
997,291.41
-
210,934.00
Ocean County Recycling Revenue Share
10,053.55
-
-
-
(10,053.55)
-
Bulletproof Vest Partnership Grant
6,207.81
-
-
-
-
6,207.81
Post Sandy Planning Assistance
93,854.18
-
-
-
-
93,854.18
NJDEP Living Shore Grant
400,000.00
-
8,925.00
-
-
391,075.00
NJDOT - Iowa Court
-
432,192.00
-
-
-
432,192.00
Safe and Secure 2019
-
60,000.00
20,000.00
-
-
40,000.00
Recycling Tonnage 2019
-
31,839.12
31,839.12
-
-
-
Clean Communities 2019
-
58,471.27
58,471.27
-
-
-
Body Armor Grant 2019
-
4,412.94
4,412.94
-
-
-
2019 NJOEM 966 Grant
-
6,890.54
6,890.54
-
-
-
Department of Justice Grant
-
9,855.25
-
9,855.25
-
-
CDBG 2019
-
35,000.00
-
-
-
35,000.00
Total
2,133,111.65
$
638,661.12
$
1,415,330.28
$
9,855.25
$
(10,053.55)
$
1,336,533.69
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE
76
EXHIBIT A-14
BALANCE
BALANCE
DECEMBER 31,
2018 BUDGET
ADJUSTED
DECEMBER 31,
APPROPRIATION
2017
APPROPRIATION
EXPENDED
(CANCELLED)
2018
State:
Safe and Secure Communities - 2018
10,000.00
$
-
$
10,000.00
$
-
$
-
$
Alcohol Education & Rehabilitation
1,631.95
-
-
-
1,631.95
NJOEM Grant
20.95
-
-
-
20.95
Nj Department of Justice Grant
1,488.00
-
-
-
1,488.00
Drunk Driving Enforcement Fund
497.95
-
-
-
497.95
Clean Communities Program - 2017
239.06
-
239.06
-
-
Clean Communities Program - 2018
51,039.06
-
14,327.64
-
36,711.42
NJDOT Municipal Aid Program - 2014
188,119.25
-
-
-
188,119.25
NJDOT Municipal Aid Program - 2018
350,000.00
-
350,000.00
-
-
Recycling Tonnage Grant - 2017
31,060.86
-
11,220.71
-
19,840.15
Recycling Tonnage Grant - 2018
30,928.59
-
-
-
30,928.59
Child Restraint Grant
2,500.00
-
-
-
2,500.00
Safe and Secure Communities
12,540.00
-
-
-
12,540.00
966 Reimbursement
15,582.77
-
-
-
15,582.77
Coastal Zone Management
2,597.75
-
-
-
2,597.75
Municipal Access Plan
15,000.00
-
-
-
15,000.00
Post Sandy Planning Assistance
48,073.26
-
-
-
48,073.26
NJDEP Living Shoreline
400,000.00
-
218,960.13
-
181,039.87
Department of Justice Grant
-
9,855.25
-
-
9,855.25
NJDOT - Iowa Court
-
432,192.00
-
-
432,192.00
Safe and Secure Communities 2019
-
60,000.00
50,000.00
-
10,000.00
Recycling Tonnage 2019
-
31,839.12
-
-
31,839.12
Clean Communities 2019
-
58,471.27
-
-
58,471.27
Body Armor Grant 2019
-
4,412.94
-
-
4,412.94
2019 NJOEM 966 Grant
-
6,890.54
6,890.54
-
-
Total State
1,161,319.45
603,661.12
661,638.08
-
1,103,342.49
Federal:
National Fish & Wildlife
1,214,830.91
-
1,214,830.91
-
-
CDBG 2015
30,493.42
-
-
-
30,493.42
National Wildlife Refuge
130.00
-
-
4,540.00
4,670.00
CDBG 2014
31,062.15
-
-
-
31,062.15
CDBG 2019 Grant
-
35,000.00
-
-
35,000.00
Total Federal
1,276,516.48
35,000.00
1,214,830.91
4,540.00
101,225.57
Local:
Recycling Tonnage Grant - County
10,415.87
-
362.92
(10,052.95)
-
Recycling Revenue and Residue
25,377.56
-
5,428.08
-
19,949.48
Refuge Revenue Sharing Act
2,240.00
-
38.00
-
2,202.00
Ocean County Recycling Revenue and Residue
439.00
439.00
-
-
Ocean County Recycling Revenue Sharing - 2017
9,849.02
-
-
(0.60)
9,848.42
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
67,990.00
-
25,936.55
(10,053.55)
31,999.90
Total
2,505,825.93
$
638,661.12
$
1,902,405.54
$
(5,513.55)
$
1,236,567.96
$
Cash Disbursements
1,891,273.79
$
Encumbrances
11,131.75
Total
1,902,405.54
$
TOWNSHIP OF LITTLE EGG HARBOR
CURRENT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS - APPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2018
77
EXHIBIT A-15
TRANSFERRED
BALANCE
TO 2019
BALANCE
DECEMBER 31,
GRANT
DECEMBER 31,
GRANT
2018
APPROPRIATED
RECEIVED
2019
State Grants:
Department of Justice Grant
9,855.25
$
9,855.25
$
3,245.00
$
3,245.00
$
9,855.25
$
9,855.25
$
3,245.00
$
3,245.00
$
SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
FEDERAL AND STATE GRANT FUND
78
TRUST FUND
79
This page intentionally left blank.
80
EXHIBIT B-1
Balance December 31, 2018
4,045,599.12
$
54,096.41
$
Increased by Receipts:
Escrow Fees
507,596.44
$
-
$
Open Space
29,020.25
-
Forfeited Funds
12,964.31
-
COAH Fees
25,773.65
-
Sick/Vacation Funds
150,000.00
-
Federal Forfeiture
12.74
-
Interfunds Received
12,298.15
-
737,665.54
-
Subtotal
4,783,264.66
54,096.41
Decreased by Disbursements:
Escrow Fees
372,048.55
-
Planning Board
27,715.56
-
Open Space
502,507.79
-
Due to Capital - Open Space
240,000.00
COAH Fees
160,786.68
-
Sick/Vacation Funds
177,947.39
-
Federal Forfeiture
1,300.00
-
1,482,305.97
-
Balance December 31, 2019
3,300,958.69
$
54,096.41
$
EXHIBIT B-2
Balance December 31, 2018
1,475,259.74
$
Increased by Receipts:
Due from Current Fund
Deposits for Redemption of Tax Sale Certificates
3,077,846.17
Subtotal
4,553,105.91
Decreased by Disbursements:
Refunds - Tax Sale Certificates Redeemed
3,492,524.16
Balance December 31, 2019
1,060,581.75
$
SCHEDULE OF CASH - COLLECTOR - TAX TITLE LIEN REDEMPTION
FOR THE YEAR ENDED DECEMBER 31, 2019
TRUST OTHER
TRUST ASSESSMENT
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2019
81
EXHIBIT B-3
Balance December 31, 2018
27.00
$
Increased by Receipts:
Dog License Fees
7,371.00
$
State Dog License Fees
1,491.00
8,862.00
Subtotal
8,889.00
Decreased by Disbursements:
Disbursements to State of New Jersey
1,491.00
Disbursements for Dog License Expenses
7,377.00
8,868.00
Balance December 31, 2019
21.00
$
EXHIBIT B-4
Balance December 31, 2018
27.00
$
Increased by:
Dog Licenses
8,862.00
Subtotal
8,889.00
Decreased by:
Expenditures
8,868.00
Balance December 31, 2019
21.00
$
YEAR
AMOUNT
2018
7,429.20
$
2017
7,683.00
Total
15,112.20
$
EXHIBIT B-5
Balance December 31, 2018
1,475,259.74
$
Increased by Receipts:
Deposits Received - Collector
3,077,846.17
Subtotal
4,553,105.91
Decreased by Disbursements:
Refunds - Tax Sale Certificates
3,492,524.16
Balance December 31, 2019
1,060,581.75
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF CASH - ANIMAL CONTROL
FOR THE YEAR ENDED DECEMBER 31, 2019
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF DEPOSITS FOR REDEMPTION OF TAX SALE CERTIFICATES
SCHEDULE OF RESERVE FOR DOG FUND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2019
LICENSE FEES COLLECTED
82
EXHIBIT B-6
Balance December 31, 2018
1,399,224.93
$
Increased by:
Escrow Deposits Received
507,596.44
Subtotal
1,906,821.37
Decreased by:
Disbursements
372,048.55
Balance December 31, 2019
1,534,772.82
$
EXHIBIT B-7
Balance December 31, 2018
40,920.73
$
Increased by:
Cash Receipts
12,964.31
Balance December 31, 2019
53,885.04
$
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR FORFEITED PROPERTY
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF RESERVE FOR ESCROW DEPOSITS
FOR THE YEAR ENDED DECEMBER 31, 2019
83
EXHIBIT B-8
Balance December 31, 2018
27,715.56
$
Decreased by:
Escrow Fees
27,715.56
Balance December 31, 2019
-
$
EXHIBIT B-9
Balance December 31, 2018 & 2019
2,057.05
$
SCHEDULE OF RESERVE FOR RECREATION
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
TRUST FUND
SCHEDULE OF RESERVE FOR PLANNING BOARD
FOR THE YEAR ENDED DECEMBER 31, 2019
84
EXHIBIT B-10
Balance December 31, 2018
1,722,985.19
$
Increased by:
Tax Levy - Due from Current Fund
127.35
$
Tax Levy - Cash Receipts
23,279.45
Cash Receipts
5,740.80
29,147.60
Subtotal
1,752,132.79
Decreased by:
Disbursements
502,507.79
Balance December 31, 2019
1,249,625.00
$
EXHIBIT B-11
Balance December 31, 2018 & 2019
3,582.88
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR COMMUNITY CENTER
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF RESERVE FOR OPEN SPACE
FOR THE YEAR ENDED DECEMBER 31, 2019
85
EXHIBIT B-12
Balance December 31, 2018
4,265.66
$
Increased by:
Receipts
12.74
Subtotal
4,278.40
Decreased by:
Disbursements
1,300.00
Balance December 31, 2019
2,978.40
$
EXHIBIT B-13
Balance December 31, 2018
50,127.87
$
Increased by:
Receipts
150,000.00
Subtotal
200,127.87
Decreased by:
Disbursements
177,947.39
Balance December 31, 2019
22,180.48
$
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF RESERVE FOR FEDERAL FORFEITURE LAW ENFORCEMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR SICK AND VACATION TIME TRUST FUND
86
EXHIBIT B-14
Balance December 31, 2018
301,559.15
$
Increased by:
Receipts
25,773.65
Subtotal
327,332.80
Decreased by:
Disbursements
160,786.68
Balance December 31, 2019
166,546.12
$
EXHIBIT B-15
Balance December 31, 2018 & 2019
1,100.00
$
FOR THE YEAR ENDED DECEMBER 31, 2019
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, 2019
87
EXHIBIT B-16
Balance December 31, 2018 & 2019
1,736.08
$
EXHIIT B-17
Balance December 31, 2018 & 2019
3,352.80
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR POLICE K-9 EQUIPMENT DONATIONS
FOR THE YEAR ENDED DECEMBER 31, 2019
SCHEDULE OF RESERVE FOR POLICE EVIDENCE DEPOSITS
FOR THE YEAR ENDED DECEMBER 31, 2019
88
EXHIBIT B-18
Balance December 31, 2018
-
$
Increased by:
Receipts
9,600.00
Balance December 31, 2019
9,600.00
$
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF RESERVE FOR VETERANS PARK DONATIONS
FOR THE YEAR ENDED DECEMBER 31, 2019
89
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90
GENERAL CAPITAL FUND
91
This page intentionally left blank.
92
EXHIBIT C-2
Balance December 31, 2018
2,389,462.10
$
Increased by Receipts:
Received from Open Space Fund
680,000.00
$
Received from Current Fund
2,368,985.81
Received from NJEIT
2,893,024.00
Premiums on Bonds
617,973.61
Bonds Issued
6,280,000.00
Premiums on BANs
55,050.69
BAN Issued
16,825,000.00
29,720,034.11
Subtotal
32,109,496.21
Decreased by Disbursements:
Improvement Authorizations
6,972,827.87
$
BAN Paid
20,131,000.00
Trasfer to Current Fund
2,177,729.25
29,281,557.12
Balance December 31, 2019
2,827,939.09
$
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
93
EXHIBIT C-3
(Page 1 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
2018
NOTES/BONDS
MISCELLANEOUS
AUTHORIZATIONS
MISCELLANEOUS
FROM
TO
2019
Fund Balance
73,777.92
$
-
$
617,973.61
$
-
$
616,000.00
$
-
$
-
$
75,751.53
$
Capital Improvement Fund
96,044.00
-
100,000.00
-
-
19,000.00
-
177,044.00
Reserve for Repayment of Debt
780,233.44
-
-
-
780,233.44
-
-
-
Reserve for Debt Service - BAN Premiums
63,987.00
-
55,050.69
-
63,987.00
-
-
55,050.69
Due Current Fund
-
-
2,261,854.81
-
2,261,854.81
-
-
-
Due Open Space Trust Fund
(480,000.00)
-
680,000.00
-
-
440,000.00
-
(240,000.00)
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
-
-
-
-
-
02-22
Purchase of Street Sweeper
(80.00)
-
80.00
-
-
-
-
-
09-06
Improvements to Frog Pond Road
-
-
-
-
113,665.00
-
-
(113,665.00)
11-15
Various Capital Improvements
-
1,862,673.25
-
-
1,863,614.14
-
-
(940.89)
13-14
Various Capital Improvements
423,450.06
2,378,624.56
-
8,214.83
2,802,074.84
-
-
(8,215.05)
14-10
Various Capital Improvements
(526,524.10)
3,028,000.00
-
510,734.53
1,514,000.00
-
-
476,741.37
16-05
Various Capital Improvements
714,604.94
5,760,143.08
-
360,648.18
5,760,143.08
-
-
353,956.76
17-08
Various Capital Improvements
549,092.01
3,175,500.00
-
188,260.19
3,175,500.00
-
-
360,831.82
Subtotal
2,348,854.10
16,204,940.89
3,722,010.11
1,067,857.73
19,608,670.14
459,000.00
-
1,140,277.23
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2019
DISBURSEMENTS
TRANSFERS
94
EXHIBIT C-3
(Page 2 of 2)
BALANCE
BALANCE
(OVERDRAFT)
BOND
(OVERDRAFT)
ORDINANCE
DECEMBER 31,
ANTICIPATION
RECEIPTS
IMPROVEMENT
DECEMBER 31,
NUMBER
2018
NOTES/BONDS
MISCELLANEOUS AUTHORIZATIONS MISCELLANEOUS
FROM
TO
2019
18-08
Twin Lakes Blvd Drainage
(1,061,791.95)
-
2,893,024.00
1,859,458.29
-
-
-
(28,226.24)
18-12
Dredging Osborn Island
712,527.76
1,500,000.00
-
848,098.00
1,500,000.00
-
-
(135,570.24)
18-13
Various General Improvements
(90,127.81)
2,400,059.11
-
939,242.87
1,200,059.11
-
-
170,629.32
18-14
Improvements Veterans Park
480,000.00
-
-
480,000.00
-
-
-
-
19-07
Dredging Mystic Island Phase 1
-
3,000,000.00
-
1,531,171.61
-
-
-
1,468,828.39
19-08
Additional Improvements Veterans Park
-
-
-
149,041.85
-
-
240,000.00
90,958.15
19-11
Preliminary Dredging Expenses
-
-
-
97,557.52
-
-
19,000.00
(78,557.52)
19-12
Improvements Littl Treasures Park
-
-
-
400.00
-
-
200,000.00
199,600.00
Subtotal
40,608.00
6,900,059.11
2,893,024.00
5,904,970.14
2,700,059.11
-
459,000.00
1,687,661.86
Total Analysis of Cash
2,389,462.10
$
23,105,000.00
$
6,615,034.11
$
6,972,827.87
$
22,308,729.25
$
459,000.00
$
459,000.00
$
2,827,939.09
$
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2019
DISBURSEMENTS
TRANSFERS
TOWNSHIP OF LITTLE EGG HARBOR
95
EXHIBIT C-4
Balance December 31, 2018
12,174,355.25
$
Increased by:
Bonds Issued
6,280,000.00
Subtotal
18,454,355.25
Decreased by:
2019 Budget Appropriation to Pay General Serial Bonds
1,170,000.00
$
Green Trust Loan Bonds
70,925.90
1,240,925.90
Balance December 31, 2019
17,213,429.35
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
FOR THE YEAR ENDED DECEMBER 31, 2019
96
EXHIBIT C-5
BALANCE
DEFERRED
BALANCE
UNEXPENDED
BOND
ORDINANCE
DECEMBER 31,
2019
BAN'S
BONDS
CHARGE
DECEMBER 31,
IMPROVEMENT
ANTICIPATION
NUMBER
IMPROVEMENT DESCRIPTION
2018
AUTHORIZATIONS
PAID
ISSUED
RAISED
2019
AUTHORIZATION ENCUMBERED
EXPENDED
NOTES
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
-
-
-
-
-
02-08
Improvements to Cherrywood Drive
27,438.00
-
27,438.00
-
-
-
-
-
-
-
02-14,36
Construction of Recreation Facilities
37,920.00
-
37,920.00
-
-
-
-
-
-
-
02-22
Purchase of Street Sweeper
80.00
-
-
-
80.00
-
-
-
-
-
02-23
Acquisition of Land - Parker Run
26,803.36
-
26,803.36
-
-
-
-
-
-
-
05-19
Road Improvements - Various
98,945.00
-
98,945.00
-
-
-
-
-
-
-
07-04
Construction of North Burgee Drive
110,680.92
-
110,680.92
-
-
-
-
-
-
-
07-10
Acquisition of Garbage Truck
108,903.92
-
108,903.92
-
-
-
-
-
-
-
08-03
Acquisition & Installation of Automatic Doors
6,109.74
-
6,109.74
-
-
-
-
-
-
-
08-04
Improvements to Lexington Drive
171,760.93
-
171,760.93
-
-
-
-
-
-
-
09-05
Improvements to Forest Edge Drive
79,382.68
-
79,382.68
-
-
-
-
-
-
-
09-06
Improvements to Frog Pond Road
176,000.00
-
5,502.00
-
56,833.00
113,665.00
-
-
113,665.00
-
11-15
Various Capital Improvements
931,807.07
-
-
930,866.18
-
940.89
-
-
940.89
-
13-14
Various Capital Improvements
1,810,829.00
-
198,066.44
1,189,312.28
-
423,450.28
415,235.23
-
8,215.05
-
14-10
Various Capital Improvements
1,871,500.00
-
-
-
-
1,871,500.00
357,500.00
-
-
1,514,000.00
16-05
Various Capital Improvements
3,188,071.54
-
-
3,188,071.54
-
-
-
-
-
-
17-08
Various Capital Improvements
1,587,750.00
-
-
1,587,750.00
-
-
-
-
-
-
18-08
Twin Lakes Blvd Drainage
199,671.00
-
-
-
-
199,671.00
199,671.00
-
-
-
18-12
Dredging Osborn Island
4,000,000.00
-
-
-
-
4,000,000.00
2,364,429.76
-
135,570.24
1,500,000.00
18-13
Various General Improvements
1,973,150.00
-
-
-
-
1,973,150.00
773,150.00
-
-
1,200,000.00
19-07
Dredging Mystic Island Phase 1
-
4,500,000.00
-
-
-
4,500,000.00
1,500,000.00
-
-
3,000,000.00
19-11
Preliminary Dredging Expenses
-
361,000.00
-
-
-
361,000.00
272,781.73
9,660.75
78,557.52
-
Total
16,413,854.16
$
4,861,000.00
$
871,512.99
$
6,896,000.00
$
63,964.00
$
13,443,377.17
$
5,882,767.72
$
9,660.75
$
336,948.70
$
7,214,000.00
$
Bonds Issued
6,280,000.00
$
Bond Premium Used to Pay BAN
616,000.00
Total
6,896,000.00
$
Improvement Authorizations Unfunded
7,850,881.55
$
Less - Unexpended Proceeds of Bond Anticipation
Notes Issued:
Ordinance 2014-10
476,741.37
Ordinance 2018-13
39,927.82
Ordinance 2019-07
1,451,444.64
5,882,767.72
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
FOR THE YEAR ENDED DECEMBER 31, 2019
BALANCE DECEMBER 31, 2019
ANALYSIS OF
97
EXHIBIT C-6
Balance December 31, 2018
96,044.00
$
Increased By:
Transfer from Current Fund Budget
100,000.00
Subtotal
196,044.00
Decreased By:
Appropriated to Finance Improvement Authorizations
19,000.00
Balance December 31, 2019
177,044.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2019
98
EXHIBIT C-7
RECLASSIFICATION
CURRENT YEAR
ORDINANCE
2019
PRIOR YEAR
ENCUMBRANCES
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
ENCUMBRANCES
EXPENDED
PAYABLE
FUNDED
UNFUNDED
13-14
Various Capital Improvements
9/12/13
2,149,850.00
$
-
$
423,450.06
$
-
$
-
$
8,214.83
$
-
$
-
$
415,235.23
$
14-10
Various Capital Improvements
7/10/14
1,970,000.00
-
1,033,886.90
-
311,089.00
510,734.53
-
-
834,241.37
16-05
Various Capital Improvements
9/08/16
3,495,000.00
-
726,783.40
-
120,000.00
360,648.18
-
486,135.22
-
17-08
Various Capital Improvements
7/13/17
1,705,000.00
-
411,875.96
-
5,037.59
188,260.19
6,557.70
222,095.66
-
18-08
Twin Lakes Blvd Drainage
6/14/18
4,250,000.00
1,929,853.30
199,671.00
-
34,315.75
1,859,458.29
510.25
104,200.51
199,671.00
18-12
Dredging Osborn Island
7/12/18
4,000,000.00
-
3,195,857.76
-
16,670.00
848,098.00
-
-
2,364,429.76
18-13
Various General Improvements
10/11/18
2,077,000.00
-
1,682,183.19
-
200,839.00
939,242.87
130,701.50
-
813,077.82
18-14
Improvements Veterans Park
10/11/18
480,000.00
480,000.00
-
-
-
480,000.00
-
-
-
19-07
Dredging Mystic Island Phase 1
5/9/19
4,500,000.00
-
-
4,500,000.00
-
1,531,171.61
17,383.75
-
2,951,444.64
19-08
Additional Improvements Veterans Park
4/11/19
240,000.00
-
-
240,000.00
-
149,041.85
15,863.82
75,094.33
-
19-11
Preliminary Dredging Expenses
7/11/19
380,000.00
-
-
380,000.00
-
97,557.52
9,660.75
-
272,781.73
19-12
Improvements Littl Treasures Park
7/11/19
200,000.00
-
-
200,000.00
-
400.00
142,145.80
57,454.20
-
Total
2,409,853.30
$
7,673,708.27
$
5,320,000.00
$
687,951.34
$
6,972,827.87
$
322,823.57
$
944,979.92
$
7,850,881.55
$
Deferred Charges to Future Taxation - Unfunded
4,861,000.00
$
Capital Improvement Fund
19,000.00
Open Space Trust Fund
440,000.00
5,320,000.00
$
ORDINANCE
DECEMBER 31, 2018
DECEMBER 31, 2019
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2019
BALANCE
BALANCE
99
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
2018
INCREASED
DECREASED
2019
02-08
Improvements to Cherrywood Drive
2/04/14
30,666
$
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
2/2/2018
2/1/2019
1.246%
37,920.00
-
37,920.00
-
02-23
Acquisition of Land - Parker Run
2/04/14
46,550
2/2/2018
2/1/2019
1.246%
45,370.00
-
45,370.00
-
05-19
Road Improvements - Various
2/04/14
117,500
2/2/2018
2/1/2019
1.246%
98,945.00
-
98,945.00
-
07-04
Road & Drainage Improvements
North Burgee Drive
2/04/14
170,000
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
2/2/2018
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
2/2/2018
2/1/2019
1.246%
21,000.00
-
21,000.00
-
08-04
Improvements to Lexington Drive
2/04/14
395,675
2/2/2018
2/1/2019
1.246%
333,200.00
-
333,200.00
-
09-05
Improvements to Forest Edge Drive
2/04/14
204,250
2/2/2018
2/1/2019
1.246%
172,000.00
-
172,000.00
-
09-06
Improvements to Frog Pond Road
2/04/14
209,000
2/2/2018
2/1/2019
1.246%
176,000.00
-
176,000.00
-
11-15
Various Capital Improvements
2/10/12
1,610,250
2/2/2018
2/1/2019
2.500%
1,100,171.00
-
1,100,171.00
-
1/30/19
8/30/19
2.250%
-
931,807.07
931,807.07
-
13-14
Various Capital Improvements
2/04/14
2,042,360
2/2/2018
2/1/2019
2.500%
1,810,829.00
-
1,810,829.00
-
1/30/19
8/30/19
2.250%
-
1,189,312.28
1,189,312.28
-
14-10
Various Capital Improvements
8/01/19
1,514,000
1/30/19
8/20/2019
2.250%
-
1,514,000.00
1,514,000.00
-
8/1/19
4/15/20
2.000%
-
1,514,000.00
-
1,514,000.00
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
-
1/30/19
8/20/2019
2.250%
3,188,071.54
3,188,071.54
-
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
-
1/30/19
8/20/2019
2.250%
-
1,587,750.00
1,587,750.00
-
18-12
Dredging Osborn Island
11/20/18
1,500,000
11/20/2018
8/20/2019
2.250%
1,500,000.00
-
1,500,000.00
-
8/1/19
4/15/20
2.250%
-
1,500,000.00
-
1,500,000.00
18-13
Various Capital Improvements
8/01/19
1,200,000
1/30/19
8/20/2019
2.250%
-
1,200,059.11
1,200,059.11
-
8/1/19
4/15/20
2.000%
1,200,000.00
-
1,200,000.00
19-07
Dredging of Rose Creek and
Various Lagoons
8/01/19
3,000,000
8/1/19
4/15/20
2.000%
-
3,000,000.00
-
3,000,000.00
Total
10,520,000.00
$
16,825,000.00
$
20,131,000.00
$
7,214,000.00
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
DESCRIPTION
AT DECEMBER 31, 2019
STATEMENT OF BOND ANTICIPATION NOTES
IMPROVEMENT
100
EXHIBIT C-9
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2018
INCREASED
DECREASED
2019
General Obligation Refunding 2/1/2010
3,275,000.00
$
08/01/20
295,000.00
$
5.000%
890,000.00
$
-
$
300,000.00
$
590,000.00
$
Bonds
08/01/21
295,000.00
5.000%
General Obligation Refunding 5/2/2012
5,260,000.00
11/15/20
535,000.00
2.250%
2,635,000.00
-
545,000.00
2,090,000.00
Bonds
11/15/21
525,000.00
2.500%
11/15/22
520,000.00
3.000%
11/15/23
510,000.00
2.750%
General Obligation Bonds
2/2/2017
4,500,000.00
2/01/20
325,000.00
2.000%
4,225,000.00
-
325,000.00
3,900,000.00
2/01/21
275,000.00
2.000%
2/01/22
550,000.00
2.000%
2/01/23
550,000.00
2.000%
2/01/24
550,000.00
3.000%
2/01/25
550,000.00
3.000%
2/01/26
550,000.00
3.000%
2/01/27
550,000.00
3.000%
General Obligation Bonds
8/1/2019
6,280,000.00
8/15/20
415,000.00
4.000%
-
6,280,000.00
-
6,280,000.00
8/15/21
525,000.00
4.000%
8/15/22
525,000.00
4.000%
8/15/23
715,000.00
4.000%
8/15/24
820,000.00
4.000%
8/15/25
820,000.00
3.000%
8/15/26
820,000.00
3.000%
8/15/27
820,000.00
3.000%
8/15/28
820,000.00
3.000%
Totals
7,750,000.00
$
6,280,000.00
$
1,170,000.00
$
12,860,000.00
$
MATURITIES OF
DECEMBER 31, 2019
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
AT DECEMBER 31, 2019
101
EXHIBIT C-10
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2018
DECREASED
2019
Open Space
10/22/02
255,220.00
$
2020
15,025.39
2.00%
60,717.58
$
14,729.32
$
45,988.26
$
Acquisition
2021
15,327.40
2022
15,635.47
Recreation Complex
7/18/02
500,000.00
2020
29,730.50
2.00%
104,595.15
29,144.69
75,450.46
2021
30,328.08
2022
15,392.88
Municipal Complex
9/7/05
250,000.00
2020
14,004.00
2.00%
94,313.00
13,727.00
80,586.00
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
2020
13,591.89
2.00%
114,400.52
13,324.89
101,075.63
Softball Field
2021
13,865.08
& Tot Lot
2022
14,143.77
2023
14,428.06
2024
14,718.07
2025
15,013.90
2026
15,315.68
Total
374,026.25
$
70,925.90
$
303,100.35
$
MATURITIES OF
DECEMBER 31, 2019
BONDS OUTSTANDING
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
SCHEDULE OF GREEN TRUST LOAN PAYABLE
AT DECEMBER 31, 2019
102
EXHIBIT C-11
BALANCE
2019
PAID
BALANCE
ORDINANCE
IMPROVEMENT
DECEMBER 31,
AUTHORIZATIONS
BY BUDGET
NOTES/LOANS
DECEMBER 31,
NUMBER
DESCRIPTION
2018
/INCREASES
APPROPRIATION
ISSUED
2019
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
-
-
09-06
Improvements to Frog Pond Road
-
113,665.00
-
-
113,665.00
11-15
Various Capital Improvements
-
940.89
-
-
940.89
13-14
Various Capital Improvements
-
423,450.28
-
-
423,450.28
14-10
Various Capital Improvements
1,871,500.00
-
-
1,514,000.00
357,500.00
18-08
Twin Lakes Blvd Drainage
199,671.00
-
-
-
199,671.00
18-12
Dredging Osborn Islanc
2,500,000.00
-
-
-
2,500,000.00
18-13
Various Capital Improvements
1,973,150.00
-
-
1,200,000.00
773,150.00
19-07
Ddredging Rose Creek and Lagoons East
of Radio Road in Mystic Island
-
4,500,000.00
-
3,000,000.00
1,500,000.00
19-11
Preliminary Expenses Potential Dredging
-
361,000.00
-
-
361,000.00
Total
6,551,452.00
$
5,399,056.17
$
7,131.00
$
5,714,000.00
$
6,229,377.17
$
BAN's Not Reissued
538,056.17
$
Authorized in the Current Year
4,861,000.00
5,399,056.17
$
TOWNSHIP OF LITTLE EGG HARBOR
GENERAL CAPITAL FUND
AT DECEMBER 31, 2019
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
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104
PAYROLL FUND
105
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106
EXHIBIT D-1
PAYROLL FUND
STATEMENT OF PAYROLL FUND CASH
FOR THE YEAR ENDED DECEMBER 31, 2019
Balance December 31, 2018
212,027.77
$
Increased by:
Receipts
12,698,282.84
Subtotal
12,910,310.61
Decreased by:
Disbursements:
Net Pay
6,193,314.65
$
Paid to Current
493,202.99
Payment to Agencies
6,095,759.32
12,782,276.96
Balance December 31, 2019
128,033.65
$
EXHIBIT D-2
FOR THE YEAR ENDED DECEMBER 31, 2019
Balance December 31, 2018
84,214.05
$
Increased by:
Payroll Deductions
6,507,428.58
Subtotal
6,591,642.63
Decreased by:
Due Current Fund
493,202.99
$
Disbursements
6,095,759.32
6,588,962.31
Balance December 31, 2019
2,680.32
$
ANALYSIS OF BALANCE
State Tax Liability
2,680.32
$
Balance December 31, 2019
2,680.32
$
TOWNSHIP OF LITTLE EGG HARBOR
STATEMENT OF PAYROLL TAXES PAYABLE
107
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108
TOWNSHIP OF LITTLE EGG HARBOR
PART II
SINGLE AUDIT SECTION
FOR THE YEAR ENDED DECEMBER 31, 2019
109
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110
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 Federal and State Program
We have audited the Township of Little Egg Harbor’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement and the New Jersey State Aid/Grant
Compliance Supplement that could have a direct and material effect on each of the Township’s major
federal and state programs for the year ended December 31, 2019. The Township’s major federal and
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 federal and state statutes, regulations, and the terms and
conditions of its federal and state awards applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Township’s major federal and
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, the Uniform Guidance 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 federal
111
or 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
federal and state program. However, our audit does not provide a legal determination of the Township’s
compliance.
Opinion on Each Major Federal and 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 federal and state programs for the year ended December 31, 2019.
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
federal or 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 federal or 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
federal or 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 federal or
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 federal or 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.
112
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
Toms River, New Jersey
September 28, 2020
113
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114
SCHEDULE 1
Federal
Agency or
CFDA
Pass-Through
Program
Passed to
Federal Grantor/Pass-Through Grantor/Program Title
Number
Number
Expenditures
Subrecipient
U.S. Department of the Interior
Replenishing Little Egg harbor's Marshes and Wetlands
15,153
Not Available
1,214,830.91
$
-
$
Total U.S. Department of the Interior
1,214,830.91
-
Total Expenditures of Federal Awards
1,214,830.91
$
-
$
The Accompanying Notes to the Schedule of Expenditures of Federal Awards are an Integral Part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR YEAR ENDED DECEMBER 31, 2019
115
SCHEDULE 2
Program
Pass-Through
Cumulative
State Grantor/Pass-Through Grantor/Program Title
State Account Number
Grant Period
Expenditures
to Subrecipient
Expenditures
New Jersey Department of Environmental Protection
Clean Communities Grant
765-042-4900-004
N/A
14,566.70
$
-
$
25,853.00
$
Recycling Tonnage Grant
100-042-4910-224
N/A
11,220.71
-
21,361.00
NJEIT Trust Loans
Project#S344060-02 - Twin Lakes Blvd Drainage
unavailable
N/A
1,859,458.29
-
3,979,933.99
Living Shoreline Grant
unavailable
N/A
218,960.13
-
218,960.00
Total New Jersey Department of Environmental ProtectionDevelopment
2,104,205.83
-
4,246,107.99
Department of Transportation
Municipal Aid Program - 2018
6320-480-AM2
Open
350,000.00
-
350,000.00
Total Department of Transportation
350,000.00
-
350,000.00
Department of Justice
Safe and Secure Communities
1020-100-232
N/A
60,000.00
-
60,000.00
NJOEM 966 Grant 2019
1200-100-634
N/A
6,890.54
-
6,890.54
Total Department of Justice
66,890.54
-
66,890.54
Total Expenditures of State Financial Assistance
2,521,096.37
$
-
$
4,662,998.53
$
The Accompanying Notes to the Schedule of Expenditures of State Financial Assistance are an Integral Part of this Statement.
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF STATE FINANCIAL ASSISTANCE
FOR YEAR ENDED DECEMBER 31, 2019
116
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 1. Basis of Presentation
The accompanying schedules of expenditures of federal awards and state financial assistance present the
activity of all federal awards and 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 these
schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) and New Jersey OMB’s Circular 15-08, Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly
from federal and state agencies, as well as federal awards and state financial assistance passed through
other government agencies is included on the schedule of expenditures of federal awards and state
financial assistance.
Note 2. Summary of Significant Accounting Policies
The accompanying schedules of federal awards and state financial assistance are 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 federal or state grant portion of the
program costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards and 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
Federal
Total
State & Federal Grant Fund
661,638.08
$
1,214,830.91
$
1,876,468.99
$
General Capital Fund
1,859,458.29
-
1,859,458.29
Total
2,521,096.37
$
1,214,830.91
$
3,735,927.28
$
117
TOWNSHIP OF LITTLE EGG HARBOR
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2019
Note 4. Relationship to State Financial Reports
The regulations and guidelines governing the preparation of federal and state financial reports vary by
federal and state agency and among programs administered by the same agencies. Accordingly, the
amounts reported in the federal and state financial reports do not necessarily agree with the amounts
reported in the accompanying Schedules, which is prepared on the modified accrual basis of accounting
as explained in Note 2.
Note 5. State Loans Outstanding
The Township had no loan balances outstanding at December 31, 2019.
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.
118
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
Federal Awards
Internal control over major programs:
1) Material weakness(es) identified?
yes
X
no
2) Significant deficiency(ies) identified?
yes
X
none reported
Type of auditor's report issued on compliance for major programs
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200 section .516(a) of Uniform Guidance?
yes
X
no
Identification of major programs:
CFDA Number(s)
Name of Federal Program or Cluster
Dollar threshold used to determine Type A programs
Auditee qualified as low-risk auditee?
yes
X
no
$ 750,000.00
Unmodified - Regulatory Basis
15.153
Replenishing Little Egg Harbor's Marshes and Wetlands
Adverse - GAAP;
Unmodified - Regulatory Basis
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section I - Summary of Auditor's Results
119
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
Section I - Summary of Auditor's Results (continued)
$ 750,000.00
Unmodified - Regulatory Basis
S344060-02
NJEIT Trust - Twin Lakes Blvd. Drainage
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
120
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS & QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section II – Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance
related to the basic financial statements that are required to be reported in accordance with Government
Auditing Standards and with audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
None
121
TOWNSHIP OF LITTLE EGG HARBOR
SCHEDULE OF FINDINGS & QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section III – Federal Awards & State Financial Assistance Findings & Questioned Costs
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance,
including questioned costs, related to the audit of major federal and state programs, as required by Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principals, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB’s
Circular 15-08.
FEDERAL AWARDS
None
STATE FINANCIAL ASSISTANCE
None
122
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, 2019
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,
Uniform Guidance and New Jersey OMB’s Circular 15-08.
FINANCIAL STATEMENT FINDINGS
Finding No. 2018-001
Condition:
The Township had an over-expenditure in the appropriation reserve year budget during 2018.
Current Status:
The finding has been corrected.
FEDERAL AWARDS
N/A – No Federal Single Audit in prior year.
STATE FINANCIAL ASSISTANCE
No Prior Year Findings.
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124
TOWNSHIP OF LITTLE EGG HARBOR
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2019
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126
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2019:
Name
Title
Barbara Jo Crea
Mayor
John Kehm, Jr
Deputy Mayor
Raymond Gormley
Committeeman
Blaise Scibetta
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
127
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128
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, 2019.
GENERAL COMMENTS:
Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)
N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or
hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of
public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the
Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as
is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by
contract or agreement.
The bid threshold in accordance with N.J.S.A. 40A:11-4 was $17,500 for the year ended December 31, 2019.
It is pointed out that the governing body of the municipality has the responsibility of determining whether
the expenditures in any category will exceed the statutory minimum within the fiscal year. Where
question arises as to whether any contract or agreement might result in violation of the statute, the
solicitor's opinion should be sought before a commitment is made.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an
accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine
whether any clear-cut violations existed.
Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid
threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” other
than those where bids had been previously sought by public advertisement or where a resolution had been
previously adopted under the provisions of N.J.S.A.40A:11-6.
129
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, 2019 adopted the following resolution authorizing interest to be
charged on delinquent taxes:
NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non-
payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first
$1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of
$1,500.00; and
BE IT FURTHER RESOLVED, by the 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):
None.
RECOMMENDATIONS:
None.
130
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
Toms River, New Jersey
September 28, 2020
131
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