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2014 Middlesex Borough Municipal Audits
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ISSUED: 10/2/2015
DUE: TBD
VALUE: TBD
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Executive Summary
The Borough of Middlesex's financial statements for the year ended December 31, 2014, were audited by Hodulik & Morrison, P.A. The audit assessed the financial transactions of the Finance Department and various fee-collecting offices. An adverse opinion was issued on the U.S. Generally Accepted Accounting Principles (GAAP) presentation due to the omission of the Statement of Governmental Fixed Assets and material differences between regulatory accounting practices and GAAP. A qualified opinion was given for the regulatory basis financial statements.
Recommendations include ensuring all postings to the general ledger are properly recorded within the financial information processing system, sewer billings are processed according to Borough ordinances in a timely manner, and the fixed asset inventory accounting system is maintained accurately and completely. The audit also identified control deficiencies related to general ledger maintenance and cash receipts/disbursements journals, which are to be addressed.
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Document Text
--- Document: 2014 Middlesex Borough Municipal Audits Document ---
BOROUGH
OF MIDDLESEX
COUNTY OF MIDDLESEX
NEW JERSEY
FINANCIAL
STATEMENTS
AND
SUPPLEMENTARY
DATA
AND INFORMATION
FOR THE YEARS ENDED
DECEMBER 31, 2014 AND 2013
WITH
REPORT OF INDEPENDENT AUDITORS
HODULIK & MORRISON, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
REGISTERED MUNICIPAL ACCOUNTANTS
HIGHLAND PARK, N.J.
PART I
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY,
NEW JERSEY
TABLE
OF CONTENTS
PAGE(S)
2-4
Independent
Auditor's Report
5
FINANCIAL
STATEMENTS
A
A- 1
A-2
A-3
B
B-1
C
C-l
D
D- 1
D-2
D-3
D-4
Current Fund - Comparative
Balance Sheet - Regulatory Basis - December 31,
2014 and 2013
Current Fund - Comparative
Statement of Operations and Change in
Fund Balance - Regulatory Basis
Current Fund - Statement of Revenues - Regulatory Basis
Current Fund - Statement of Expenditures
- Regulatory Basis
Trust Fund - Comparative
Balance Sheet - Regulatory Basis - December 31,
2014 and 2013
Trust Assessment Fund - Statement of Fund Balance - Regulatory Basis
General Capital Fund - Comparative
Balance Sheet - Regulatory Basis -
December 31,2014
and 2013
General Capital Fund - Statement of Fund Balance - Regulatory Basis
Swimming Pool Utility Fund - Comparative
Balance Sheet - Regulatory
Basis - December 31,2014
and 2013
Swimming Pool Utility Operating Fund - Comparative
Statement of
Operations and Change in Fund Balance - Regulatory Basis
Swimming Pool Utility Capital Fund - Statement of Change in
Fund Balance - Regulatory Basis - December 31, 2014
Swimming Pool Utility Operating Fund - Statement of Revenues
Swimming Pool Utility Operating Fund - Statement of Expenditures
6
7
8
9 - 17
18
19
20
N/A
21
22
23
24
25
26 - 43
NOTES TO FINANCIAL
STATEMENTS
44
PART II - SINGLE
AUDIT
SECTION
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
Report on Compliance
for Each Major Program; Report on Internal Control
Over Compliance
and Report on Schedules of Expenditures
of Federal Awards
And State Financial Assistance Required by OMB Circular A-133 and
N.J. OMB Circular 04-04
45 - 46
47 - 49
Schedule
of Expenditures
of Federal
Awards
and State Financial
Assistance
50
Sch. A Schedule of Expenditures
of Federal Awards
Sch. B Schedule of Expenditures
of State Financial Assistance
51
52 - 53
Notes to Schedule of Expenditures
of Federal Awards and State Financial Assistance
54
Sch. C Schedule of Findings and Questioned Costs
Sch. D Summary Schedule of Prior Findings
55 - 59
60
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TABLE OF CONTENTS
PAGE(S)
PART III - SUPPLEMENTARY
SCHEDULES
61
Current Fund
62
A-4
A-5
A-6
A-7
A-8
A-9
A-I0
A-II
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
A-21
Schedule of Current Fund Cash
Schedule of Petty Cash and Change Funds
Schedule of Due from State of New Jersey - for Allowable
Deductions per Ch. 73, P.L. 1976
Schedule of Property Taxes Receivable and Levy Analysis
Schedule of Non budget Revenues & Various Accounts Receivables
Schedule of Sewer Flow Charges Receivable/Overpayments
Schedule of Interfunds Receivable/Payable
Schedule of SFY 2013 Appropriation
Reserves
Schedule of Property Tax Overpayments
Schedule of Taxes Payable
Schedule of Changes in Various Accounts Payables & Reserves
Schedule of Local District School Tax - Deferred School Taxes
Schedule of Deferred Charges
Schedule of State Grants Receivable
Schedule of Due from Current Fund - Grants Fund
Schedule of Reserve for State Grants - Appropriated
Schedule of Reserve for State Grants - Unappropriated
Schedule of Due from General Capital Fund - Grant Fund
63
64
65
66
67
68
69
70 - 75
76
77
78
79
80
81
82
83 - 84
85
85
Trust Fund
86
B-2
B-3
B-4
B-5
B-6
Analysis of Trust Assessment Cash and Investments
Schedule of Assessment
Liens
Schedule of Due to General Capital Fund - Assessment Trust Fund
Schedule of Due to Current Fund - Assessment Trust Fund
Schedule of Cash and Reserve Activity
87
87
88
88
89 - 90
General Capital Fund
91
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-I0
C-ll
C-12
C-13
C-14
C-15
Schedule of General Capital Cash and Investments
- Treasurer
Analysis of General Capital Cash and Investments
Schedule of Various Grants, Loans, and Other Receivables
Schedule of Deferred Charges to Future Taxation - Funded
Schedule of Deferred Charges to Future Taxation - Unfunded
Schedule of Interfunds
Schedule of Improvement
Authorizations
Schedule of General Serial Bonds
Schedule of Capital Leases Payable - MCIA
Schedule of Loans Payable - New Jersey 1987 Green Trust Fund
Schedule of Loans Payable - New Jersey Green Trust Fund - 1989
Schedule of Various Reserves
Schedule of Reserve for Capital Improvement
Fund
Schedule of Loans Payable - NJ Environmental
Infrastructure
Trust Loan
and Fund Loan Payable
92
93
94
95
96
97
98
99
100
101
102
103
104
105
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TABLE OF CONTENTS
PAGE(S)
General Capital Fund (Cont'd.)
C-16
C-17
Schedule of Bond Anticipation
Notes
Schedule of Bonds and Notes Authorized but not Issued
106
107
Swimming Pool Utility Fund
108
D-5
D-6
D-7
D-8
D-9
D-10
D-ll
D-12
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
Schedule of Swimming Pool Utility Cash and Investments - Treasurer
Analysis of Swimming Pool Capital Cash and Investments
Schedule of Miscellaneous
Receipts - Swimming Pool Utility Operating Fund
Schedule of Fixed Capital-
Swimming Pool Utility Capital Fund
Schedule of Fixed Capital Authorized and Uncomplete
Schedule of Accounts Payable - Swimming Pool Utility Fund
Schedule of 20 13 Appropriation
Reserves
Schedule of Reserve for Snack Bar Operations
Schedule of Interfunds Receivable/Payable
Schedule of Capital Improvement
Fund
Schedule of Reserve for Amortization
Schedule of Deferred Reserve for Amortization
Schedule of Due to Swimming Operating Fund
Schedule of Improvement
Authorizations
Schedule of Bond Anticipation Notes
Schedule of Accrued Interest on Bonds and Notes
Schedule of Bonds and Notes Authorized but not Issued
109
110
111
112
112
112
113
114
115
116
116
117
117
118
119
120
121
PART IV - SUPPLEMENTARY
DATA
122
123
124
Combined Balance Sheet - All Funds for the Year Ending December 31, 2014
Comparative
Statement of Operations - Change in Fund Balance - Current Fund
Comparative
Statement of Operations - Change in Fund Balance - Swimming
Pool Utility Operating Fund
Comparative
Schedule of Tax Rate Information
Comparison of Tax Levies and Collection Currently
Delinquent Taxes and Tax Title Liens
Property Acquired for Tax Title Lien Liquidation
Comparative
Schedule of Fund Balances
Officials in Office and Surety Bonds
125
126
126
127
127
127
128
PART V - GENERAL
COMMENTS
AND RECOMMENDATIONS
129
General Comments
Recommendations
130 - 138
139
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART I
INDEPENDENT
AUDITOR'S
REPORT
AND
FINANCIAL
STATEMENTS
- 1-
HODULIK
& MORRISON,
P .A.
CERTIFIED
PUBLIC ACCOUNT ANTS
REGISTERED
MUNICIPAL
ACCOUNT ANTS
PUBLIC SCHOOL ACCOUNTANTS
1102 RARITAN
AVENUE,
P.O. BOX 1450
HIGHLAND
PARK, NJ 08904
(732) 393-1000
(732) 393-1196 (FAX)
MEMBERS
OF:
AMERICAN
INSTITUTE
OF CPA'S
NEW JERSEY
SOCIETY
OF CPA'S
REGISTERED
MUNICIPAL
ACCOUNTANTS
OF N.J.
ANDREW
G. HODULlK,
CPA, RMA, PSA
ROBERT
S. MORRISON,
CPA, RMA, PSA
JO ANN BOOS,
CPA, PSA
INDEPENDENT
AUDITOR'S
REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex, New Jersey
Report on the Financial Statements
We have audited
the accompanying
balance
sheets - regulatory
basis of the various
funds of the Borough
of
Middlesex,
County
of Middlesex,
New Jersey,
as of and for the year ended December
31, 2014 and 2013, the
statements
of operations
and changes
in fund balance - regulatory
basis for the year then ended and the related
statements of revenues - regulatory basis and statements of expenditures
- regulatory basis of the various funds for
year ended December 31, 2014, and the related notes to the 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
the financial reporting provisions
of 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 error or fraud.
Auditor's
Responsibility
Our responsibility
is to express an opinion 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, the standards applicable to
financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States
and the 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 of 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 presentation
of the financial statements
in order to design audit procedures that are appropriate
in the circumstances,
but not for the purpose of expressing an
opinion on the effectiveness
of the entity's
internal control. Accordingly,
we express no such opinion. An audit also
includes evaluating the appropriateness
of accounting policies used and the reasonableness
of significant accounting
estimates made by management,
as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained
is sufficient
and appropriate
to provide a basis for our audit
opinion.
-2-
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 2, these financial statements were prepared in conformity with accounting practices prescribed
or permitted by the Division of Local Government
Services, Department
of Community Affairs, State of New Jersey,
United States of America, that demonstrate
compliance with the modified accrual basis, with certain exceptions, and
the budget
laws of New Jersey, which is a comprehensive
basis of accounting
other than accounting
principles
generally
accepted
in the United
States
of America.
These
prescribed
principles
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. Accordingly,
the accompanying
financial statements -
regulatory basis are not intended to present financial position and results of operations in accordance with accounting
principles generally accepted in the United States of America. The effect on the financial statements
between these
regulatory
accounting
practices
and accounting
principles
generally
accepted
in the United
States of America,
although not reasonably determinable,
are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting
Principles
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 in the first paragraph do
not present fairly, in accordance
with accounting principles
generally accepted in the United States of America, the
financial positions
of the Borough of Middlesex,
County of Middlesex,
New Jersey, as of December
31, 2014, the
changes in its financial position, or, where applicable, its cash flows for the year then ended. The financial statements
- regulatory
basis referred to in the first paragraph
do not include the Statement
of Governmental
Fixed Assets,
which should be included to conform with the basis of accounting
described in Note 2. The amount that should be
recorded for Governmental
Fixed Assets is not known.
Opinion on Regulatory Basis of Accounting
In our opinion, except for the effect on the financial statements
of the omission of the Statement
of Governmental
Fixed Assets" the financial statements - regulatory basis referred to above present fairly, in all material respects, the
financial position - regulatory basis of the various funds of the Borough of Middlesex,
County of Middlesex, New
Jersey as of December
31, 2014 and 2013 and the results of operations
and changes in fund balance - regulatory
basis for the year then ended and the related statements of revenues - regulatory basis and statements of expenditures
- regulatory basis of the various funds for the year ended December 31, 2014, on the basis of accounting described in
Note 2.
Other Information
Our audit was made for the purpose of forming an opinion on the financial statements of the Borough of Middlesex,
County of Middlesex,
New Jersey. The information
included in Part III - Supplementary
Schedules and Part IV -
Supplementary
Data, as listed in the table of contents, are presented for purposes of additional analysis and are not a
required
part of the financial
statements
of the Borough
of Middlesex,
County
of Middlesex,
New Jersey. The
information
included
in Part II - the accompanying
schedule
of expenditures
of federal awards are presented
for
purposes of additional
analysis as required
by U.S. Office of Management
and Budget Circular A-133, Audits of
States, Local Governments,
and Non-Profit
Organizations,
and NJ OMB Circular
04-04 Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid and are also not a required part of the financial statements.
The Part II - the schedules
of expenditures
of federal awards and the Part III - Supplementary
Schedules
are the
responsibility
of management
and were derived from and relate directly to the underlying
accounting
and other
records used to prepare the financial statements.
The information
has been subjected to 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, and in our opinion, the information
is fairly stated, in all material respects,
in relation to the financial statements - regulatory basis taken as a whole.
-3-
The schedules and information contained in Part IV - Supplementary Data have not been subjected to auditing
procedures applied in the audit of the financial statements and, accordingly we do not express an opinion, or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated October 2, 2015 on our
consideration of the Borough of Middlesex's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Borough of Middlesex's
internal control over financial reporting and
compliance.
itd~;
HM~
I/!/I
HODULIK & MORRISON, P.A.
Certified Public Accountants
Registered Municipal Accountants
___
~-=~5~~<~~~==~~.
Andrew G. Hodulik
Registered Municipal Accountant
No. 406
Highland Park, New Jersey
October 2, 2015
-4-
FINANCIAL STATEMENTS
-5-
Exhibit-A
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT FUND
COMPARATIVE
BALANCE
SHEET - REGULATORY
BASIS
DECEMBER
31 2014 AND DECEMBER
31 2013
BALANCE
BALANCE
LIABILITIES,
RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31,2014
DEC. 31 2013
AND FUND BALANCE
REF.
DEC. 31 2014
DEC.312013
Cash and Investments
- Treasurer
A-4
$
3,484,772.04
$
3,306,942.24
Liabilities:
Cash - Change Fund
A-5
500.00
500.00
Appropriation
Reserves
A-3, A-II
$
1,039,328.24
$
584,825.32
Due from State ofNJ.
per Ch. 20,
Reserve for Encumbrances
A-3,A-ll
169,197.60
257,752.65
P.L.1976
A-6
34992.30
30 168.32
Prepaid Taxes
A-7
167,198.35
503,934.61
Various Payables
A-14
63,138.30
48,480.88
3,520,264.34
3337610.56
Various Reserves
A-14
48,430.34
438,375.18
Tax Overpayments
A-12
23,032.99
Receivables
With Offsetting Reserves:
Sewer Flow Charge Overpayments
A-9
224,801.87
Taxes Receivable
A-7
823,307.17
894,628.05
Due to Federal & State Grant Fund
A-I0
456653.77
452082.20
Tax Title Liens
A-7
305,431.67
419,249.19
Property Acquired for Taxes (At
2,168,748.47
2,308,483.83
Assessed Valuation)
A-7
1,423,139.00
1,423,139.00
Revenue Accounts Receivable
A-8
32,254.84
30,903.49
Reserve for Receivables
Reserve
2,625,631.80
2,916,666.78
Sewer Flow Charges Receivable
A-9
21,445.91
135,110.66
Fund Balance
A-I
1701 515.87
I 514 126.73
Interfunds Receivable
A-I0
20053.21
13 636.39
0\
Total Regular Fund
6495896.14
6739277.34
2,625,631.80
2916666.78
Deferred Charges:
2012 Emergency
- Hurricane Sandy
A-16
240,000.00
320,000.00
2011 Emergency - Hurricane Irene
A-16
110000.00
165000.00
350000.00
485000.00
Total Regular Fund
6495896.14
6739277.34
State and Federal Grant Fund:
State and Federal Grant Fund:
Grants Receivable
A-17
6,782.00
6,409.28
Reserve for State and Federal Grants:
Due from Current Fund
A-18
456,653.77
452,082.20
Appropriated
A-19
385,564.83
360,915.06
Due from General Capital Fund
A-21
23775.00
23775.00
Unappropriated
A-20
36,163.70
31,833.94
Reserve for Encumbrances
A-19
65482.24
89517.48
Total State and Federal Grant Fund
487210.77
482266.48
Total State and Federal Grant Fund
487210.77
482266.48
$
6983106.91
$
7221
543.82
$
6983106.91
$
7221543.82
Deferred School Taxes:
Balance of Tax
A-IS
$
11,160,722.00
$
10,806,428.00
Deferred
A-IS
11160722.00
10 806428.00
School Taxes Payable
$
$
Note: See Notes to Financial Statements
Exhibit A-I
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
CURRENT FUND
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
REVENUE AND OTHER INCOME REALIZED
REF.
YEAR 2014
YEAR20l3
Fund Balance Utilized
A-I, A-2
$
996,000.00
$
645,000.00
Miscellaneous Revenues Anticipated
A-2
3,509,187.l3
3,269,917.93
Receipts from Delinquent Taxes
A-2
1,029,346.73
826,196.25
Receipts from Current Taxes
A-7
39,061,746.l2
37,912,308.96
Non-Budget Revenue
A-2
207,584.13
186,466.08
Other Credits to Income:
Unexpended Balances of Approp. Reserves
A-ll
378,82l.66
429,971.72
Interfunds Advanced/Returned
- Statutory Animal Excess
Due from Animal Control Fund
A-I0
5527.28
Total Revenues
45,188,213.05
43,269,860.94
EXPENDITURES AND OTHER CHARGES
Budget Appropriations:
Operating
Salaries and Wages
A-3
5,547,477.95
5,281,364.95
Other Expenses
A-3
7,623,302.35
7,261,419.07
State and Federal Programs Off-Set by Revenue
A-3
66,570.86
39,271.46
Municipal Debt Service
A-3
1,747,106.85
1,299,802.49
Capital Improvements
A-3
65,000.00
65,000.00
Deferred Charges and Statutory Expend.-Mun.
A-3
1,281,326.00
1,413,995.00
County Tax
A-l3
5,609,423.08
5,579,629.40
Local District School Taxes
A-l3
22,058,200.00
21,499,441.00
Interfunds Advanced - Net
A-I0
6416.82
221.57
Total Expenditures
44,004,823.91
42,440,144.94
Excess in Revenue
1,183,389.14
829,716.00
FUND BALANCE
Balance - January 1
A
1,514,126.73
1,329,41 0.73
2,697,515.87
2,159,126.73
Decreased by:
Utilization as Anticipated Revenue
A-I
996000.00
645000.00
Balance - December 31
A
$
1 701 515.87
$
1,514,126.73
Note: See Notes to Financial Statements
-7-
ExhibitA-2
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY,
NEW JERSEY
CURRENT
FUND
STATEMENT
OF REVENUES
- REGULATORY
BASIS
FOR THE YEAR ENDED
DECEMBER
31, 2014
ANTICIPATED
2014
Total
EXCESS
OR
REF.
BUDGET
Budget
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-I
$
996000.00
$
996000.00
$
996000.00
$
Miscellaneous
Revenues:
Licenses:
Alcoholic
Beverages
12,600.00
12,600.00
13,546.00
946.00
Other
39,650.00
39,650.00
37,634.50
(2,015.50)
Fees and Permits
73,000.00
73,000.00
67,511.79
(5,488.21)
Fines and Costs:
Municipal
Court
248,980.00
248,980.00
296,043.36
47,063.36
Interest and Costs on Taxes
141,000.00
141,000.00
223,746.48
82,746.48
Interest on Investments
and Deposits
29,700.00
29,700.00
39,561.64
9,861.64
Television
Franchise
Fees
76,000.00
76,000.00
83,853.30
7,853.30
Payment
in Lieu of Taxes - Prebyterian
Homes
65,000.00
65,000.00
63,234.43
(1,765.57)
Sewer Rents Receivable
70,000.00
70,000.00
70,000.00
Host Community
Benefit
Funds
75,000.00
75,000.00
98,583.35
23,583.35
Consolidated
Municipal
Property
Tax Relief Aid
214,201.00
214,201.00
214,201.00
Energy Receipts
Taxes
1,565,613.00
1,565,613.00
1,565,613.00
Dedicated
Uniform
Construction
Code Fees Offset
with Appropriations
(NJ.S.A.
40A:4-36
and NJ.A.C.
5:23-4.17):
Uniform
Construction
Code Fees
176,574.00
176,574.00
192,593.00
16,019.00
Hazardous
Waste Facilities
Siting Act (NJ.S.A.
13-15-80)
20,000.00
20,000.00
20,000.00
Public and Private Revenues
Offset with Approps.:
Alcohol
Ed Rehab & Enforcement
Fund
52.77
$
52.77
52.77
Body Armor Replacement
Grant - CY
3,354.13
3,354.13
3,354.13
Clean Communities
Program
24,852.04
24,852.04
24,852.04
Drunk Driving Enforcement
Fund
3,575.92
3,575.92
3,575.92
Forestry Grant Match
3,000.00
3,000.00
3,000.00
Middlesex
County - Info. Assis & Transp. Assist -
Older American
Act of 1965
14,381.00
14,381.00
14,381.00
Other Specialltems:
Reserve for DMV Services
4,098.00
4,098.00
4,963.67
865.67
Cellular
Phone Tower Lease
86,000.00
86,000.00
117,440.05
31,440.05
Additional
Sewer Rents Receivable
368,000.00
368,000.00
199,503.75
( 168,496.25)
FEMA - Hurricane
Irene
151 941.95
151941.95
151941.95
Total Miscellaneous
Revenues
A-l,A-8
3466573.81
3466573.81
3 509 187.13
42613.32
Receipts
from Delinquent
Taxes
A-1,A-7
890000.00
890000.00
1029346.73
139346.73
Subtotal
General Revenues
5352573.81
$
5,352,573.81
5 534533.86
181960.05
Amount to be Raised by Taxes for Support of
Municipal
Budget:
Local Tax for Municipal
Purposes
Including
Reserve
for Uncollected
Taxes
A-7
11,394,628.30
11,394,628.30
11,448,938.40
54,310.10
Minimum
Library Tax
A-7
467325.64
467325.64
467325.64
Total Amount
to be Raised by Taxes
for Support of Municipal
Budget
11861953.94
11 861953.94
11916264.04
54310.10
Budget Totals
17,214,527.75
17,214,527.75
17,450,797.90
$
236,270.15
Non-Budget
Revenues
A-1,A-4
207584.13
$
17214527.75
$
17214527.75
$
17,658,382.03
Ref.
A-3
A-3
( ) Denotes
Deficit
Note:
See Notes to Financial
Statements
- 8-
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT:
General Administration
Salaries & Wages
s
160,000.00
$
71,100.00 $
1,793.07 $
$
69,306.93
Other Expenses
Mayor and Council
Salaries and Wages
12,000.00
12,000.00
11,999.76
0.24
Other Expenses
20,000.00
20,000.00
2,872.54
4,191.70
12,935.76
Municipal Clerk
Salaries and Wages
138,483.00
138,483.00
138,483.00
Other Expenses
10,600.00
10,600.00
7,018.31
2,900.79
680.90
Postage for All Departments
Other Expenses
26,000.00
26,000.00
20,084.98
84.98
5,830.04
\0
Printing and Advertising
Other Expenses
17,500.00
17,500.00
6,257.16
11,242.84
Financial Administration (Treasury)
Salaries and Wages
122,455.00
122,455.00
120,050.97
2,404.03
Other Expenses
15,248.00
15,248.00
8,876.26
831.99
5,539.75
Elections
Other Expenses
5,500.00
5,500.00
5,500.00
Annual Audit
Other Expenses
45,000.00
45,000.00
3,800.00
41,200.00
Revenue Administration (Tax Collection)
Salaries and Wages
67,093.00
67,093.00
67,093.00
Other Expenses
10,525.00
10,525.00
4,511.45
2,748.33
3,265.22
Tax Assessment Administration
Salaries and Wages
31,993.00
31,993.00
31,993.00
Other Expenses
3,250.00
3,250.00
2,049.54
163.70
1,036.76
Legal Services
Other Expenses
107,000.00
132,000.00
98,702.23
12,159.78
21,137.99
Liquidation of Tax Title Liens and
Foreclosed Property
500.00
500.00
500.00
Engineering Services
Other Expenses
65,000.00
65,000.00
45,626.51
19,373.49
Computer Data Services
Other Expenses
184,400.00
184,400.00
155,009.79
16,836.37
12,553.84
ExhibitA-3
Page lof9
UNEXPENDED
BALANCE
CANCELLED
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
GENERAL GOVERNMENT (CONTo):
LAND USE ADMINISTRATION:
Planning Board
Other Expenses
Zoning Board of Adjustment
Salaries and Wages
Other Expenses
$
28,010.00
$
28,010.00 $
21,415.75 $
400.00
$
6,194.25 $
6,300.00
6,300.00
1,750.00
4,550.00
13,950.00
13,950.00
7,173.19
6,776.81
23,000.00
23,000.00
21,404.86
1,595.14
15,000.00
15,000.00
12,906.06
2,093.94
266,356.00
266,356.00
257,202.74
9,153.26
138,200.00
138,200.00
121,011.28
17,188.72
2,056,597.08
2,056,597.08
2,037,229.24
19,367.84
INSURANCE:
,
""'"o
Temporary Disability Insurance
Long-Term Disability Insurance
Liability Insurance
Workmen's Compensation
Employee Group Insurance
PUBLIC SAFETY:
Police Department
Salaries and Wages
Other Expenses
Juvenile Conference Committee
Salaries and Wages
Other Expenses
Office of Emergency Management
Salaries and Wages
Other Expenses
Aid to Volunteer Ambulance Companies
2,889,767.00
2,889,767.00
2,793,127.69
96,639.31
162,100.00
162,100.00
120,680.70
33,811.49
7,607.81
2,069.00
2,069.00
2,043.22
25.78
250.00
250.00
250.00
4,000.00
4,000.00
4,000.00
18,200.00
18,200.00
1,771.50
2,477.61
13,950.89
25,000.00
25,000.00
25,000.00
ExhibitA-3
Page 2 of9
UNEXPENDED
BALANCE
CANCELLED
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
PUBLIC SAFETY (CONTDl:
Fire Department
Other Expenses
$
128,850.00 $
128,850.00 $
108,793.63 $
Hazardous Waste Facilities Tax-
Other Expenses
5,000.00
5,000.00
Fire Hydrant Fees
Other Expenses
207,600.00
207,600.00
190,237.41
Municipal Prosecutor's Office
Salaries and Wages
24,399.00
24,399.00
24,398.40
Municipal Court
Salaries and Wages
145,436.00
145,436.00
130,720.39
Other Expenses
14,000.00
14,000.00
11,144.92
PUBLIC WORKS:
,_.
,_.
Road Repairs and Maintenance
Salaries and Wages
334,805.00
334,805.00
322,985.33
Other Expenses
116,741.00
116,741.00
74,282.17
Shade Tree Commission
Salaries and Wages
2,483.00
2,483.00
2,422.42
Other Expenses
50,000.00
50,000.00
29,844.78
Solid Waste Collection
Salaries and Wages
90,674.00
90,674.00
81,595.68
Garbage and Trash Removal
Salaries and Wages
719,434.00
719,434.00
642,574.75
Other Expenses
92,900.00
92,900.00
29,647.85
ENCUMBERED
11,441.58
$
1,134.29
10,370.07
11,700.00
2,029.56
8,614.79 $
5,000.00
17,362.59
0.60
14,715.61
1,720.79
11,819.67
32,088.76
60.58
8,455.22
9,078.32
76,859.25
61,222.59
ExhibitA-3
Page 3 of9
UNEXPENDED
BALANCE
CANCELLED
PUBLIC WORKS (CONTo):
Community Services Act
(Condominium Community Costs)
Other Expenses
Building and Grounds
Other Expenses
Rental of Rescue Squad Building
Other Expenses
Maintenance of Communications Equipment
Other Expenses
HEALTH AND HUMAN SERVICES:
,
.....
IV
Public Health Services (Board of Health)
Salaries and Wages
Other Expenses
Animal Control
Other Expenses
Senior Nutrition - Program Costs
Salaries and Wages
Title III Senior Medical Transportation - Program Costs
Salaries and Wages
Title III Information & Assistance - Program Costs
Salaries and Wages
PARKS AND RECREATION:
Recreation Services and Programs
Salaries and Wages
Other Expenses
Parks and Playgrounds
Salaries and Wages
Other Expenses
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
$
42,600.00 $
42,600.00 $
37,200.00 $
85,200.00
74,141.93
97,200.00
7,200.00
7,200.00
7,200.00
500.00
500.00
7,904.95
7,904.95
7,649.98
62,960.00
62,960.00
62,786.00
30,000.00
30,000.00
23,833.33
22,500.00
22,500.00
3,057.88
14,381.00
14,381.00
2,413.15
30,294.00
30,294.00
29,632.65
82,108.00
82,108.00
80,870.42
30,000.00
30,000.00
25,414.02
220,226.00
220,226.00
216,054.20
38,075.00
38,075.00
19,451.78
ENCUMBERED
19,866.47
3,188.43
948.00
$
3,191.60
500.00
254.97
174.00
6,166.67
19,442.12
11,967.85
661.35
1,237.58
1,397.55
4,171.80
17,675.22
ExhibitA-3
Page 4 of9
UNEXPENDED
BALANCE
CANCELLED
$
PARKS AND RECREATION
(CONTD):
Celebration
of Public Events
Other Expenses
Recreational
Field Development
Other Expenses
Senior Citizens Bus Transportation
Other Expenses
Senior Citizens Coordinator
Salaries and Wages
Other Expenses
OTHER COMMON
OPERATING
FUNCTIONS
-
UNCLASSIFIED:
Accumulated
Sick Leave Compensation
Salaries and Wages
Housing and Community
Advisory Board
Salaries and Wages
Other Expenses
Environmental
Advisory Council
Other Expenses
Maintenance
of Tax Map
Other Expenses
Beautification
Committee
Other Expenses
Multi-Family
Solid Waste Collection
Other Expenses
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR ENDED DECEMBER
31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
30,000.00
$
30,000.00
$
23,843.84
$
384.00
$
5,772.16
$
500.00
500.00
500.00
4,000.00
4,000.00
3,993.06
6.94
33,422.00
39,922.00
39,922.00
6,000.00
6,000.00
3,866.93
1,324.33
808.74
42,500.00
42,500.00
30,826.93
11,673.07
375.00
375.00
375.00
100.00
10000
100.00
1,150.00
1,150.00
1,150.00
1,000.00
1,000.00
1,000.00
1,295.00
1,295.00
235.00
197.61
862.39
55,000.00
55,000.00
55,000.00
ExhibitA-3
Page 5 of9
UNEXPENDED
BALANCE
CANCELLED
UTILITY
EXPENSES
AND BULK
PURCHASES:
Electricity
Street Lighting
Telephone
(Excluding
Equipment
Acquis.)
Water
Gas (Natural
or Propane)
Fuel Oil (Diesel
Fuel)
Gasoline
Sewer Processing
and Disposal
Salaries
and Wages
Other
Expenses
LANDFILL/SOLID
WASTE
DISPOSAL
COSTS:
~
Landfill
Fees
Other
Expenses
CODE
ENFORCEMENT
AND ADMINISTRATION:
Construction
Inspector,
Plumbing
Inspector
and Code Enforcer
Salaries
and Wages
Other Expenses
Total Operations
Within
"CAPS"
Contingent
Total Operations
Including
Contingent
Within
"CAPS"
DETAIL:
Salaries
and Wages
Other Expenses
(Including
Contingent)
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT
OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR
ENDED
DECEMBER
31 2014
EXPENDED
2014 BUDGET
BUDGET
AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
170,500.00
$
170,500.00
$
150,296.17
$
$
20,203.83
$
171,000.00
171,000.00
148,195.43
22,804.57
60,000.00
60,000.00
53,412.94
6,587.06
30,000.00
30,000.00
23,676.58
6,323.42
30,000.00
30,000.00
23,802.69
6,197.31
90,000.00
90,000.00
59,172.03
30,827.97
85,000.00
85,000.00
84,530.48
469.52
35,962.00
35,962.00
35,962.00
43,975.00
43,975.00
38,741.25
4,344.00
889.75
365,000.00
365,000,00
294,168.74
70,831.26
173,250.00
173,250.00
165,915.56
7,334.44
8050.00
8050.00
4354.36
662.52
3033.12
10,730,296.03
10,690,296.03
9,562,481.86
169,197.60
958,616.57
8000.00
8000.00
8000.00
10738.296.03
10698296,03
9562481.86
169197.60
966616.57
5,414,313.95
5,260,813.95
4,987,917.38
272,896.57
5323,982.08
5437482.08
4574564.48
169197.60
693720.00
ExhibitA-3
Page 6 of9
UNEXPENDED
BALANCE
CANCELLED
DEFERRED
CHARGES
AND STATUTORY
EXPENDITURES
MUNICIPAL
WITHIN
"CAPS"
STATUTORY
EXPENDITURES:
Contribution
to:
Social
Security
System
(OAS.!.)
Public
Employees'
Retirement
System
ofNJ
Police
and Firemen's
Retirement
System
ofNJ
Pension
& Firemen's
Widow
(NJSA 43: 12-228.1)
Defined
Contribution
Retirement
Program
(DCRP)
Total Deferred
Charges
and Statutory
Expenditures
Municipal
Within
"CAPS"
f-I
CJl
Total General
Appropriations
for Municipal
Purposes
Within
"CAPS"
OPERATIONS
EXCLUDED
FROM
"CAPS"
Maintenance
of Free Public
Library
(NJSA 40: 54-8)
Other
Expenses
Middlesex
County
Utilities
Authority
Sewerage
Treatment
Contractual
Piscataway
Sewerage
Authority
- Share of Costs
Middlesex
County
Improvement
Authority
-
County
Curbside
Collection
Program
Other Expenses
Insurance:
Employee
Group
Insurance
Stormwater
Pollution
Programs:
NJDES/Stormwater
Permit
Salaries
& Wages
Other
Expense
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT
OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR
ENDED
DECEMBER
31 2014
EXPENDED
2014 BUDGET
BUDGET
AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
270,000.00
$
270,000.00
$
242,889.07
$
$
27,110.93
$
255,353.00
255,353.00
255,353.00
605,973.00
605,973.00
605,973.00
5,000.00
5,000.00
5,000.00
10000.00
10000.00
5651.47
4348.53
1 146326.00
I 146326.00
I 114866.54
31459.46
11 884622.03
11 844622.03
10 677 348.40
169197.60
998076.03
467,325.64
467,325.64
467,325.64
1,272,494.63
1,272,494.63
1,272,494.63
290,000.00
330,000.00
302,205.38
110,000.00
110,000.00
99,542.41
286,664.00
286,664.00
286,664.00
6,000.00
6,000.00
3,000.00
27,794.62
10,457.59
3,000.00
ExhibitA-3
Page 7 of9
UNEXPENDED
BALANCE
CANCELLED
PUBLIC AND PRIVATE PROGRAMS
OFFSET BY REVENUES
Body Armor Replacement
Grant - CY
Drunk Driving Enforcement
Fund
Forestry Grant Match
Municipal Alliance on Alcohol & Drug Abuse
N.]. Alcohol Education
& Rehabilitation
- Municipal Court
N.J. Clean Communities
Grant
Older Americans Act - Information Assist
Total Operations
Excluded from "CAPS"
DETAIL:
Salaries and Wages
Other Expenses
CAPITAL IMPROVEMENTS
- EXCLUDED
FROM "CAPS"
Down Payments on Improvements
Capital Improvement
Fund
Total Capital Improvements
Excl. from "CAPS"
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR ENDED DECEMBER
31 2014
EXPENDED
2014 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
$
3,354.13
$
3,354.13
$
3,354.13
$
3,575.92
3,575.92
3,575.92
3,000.00
3,000.00
3,000.00
17,355.00
17,355.00
17,355.00
52.77
52.77
52.77
24,852.04
24,852.04
24,852.04
14381.00
14381.00
14381.00
2.499055
13
2.539055.13
2497802.92
286,664.00
286,664.00
286,664.00
221239113
225239113
2.211 138.92
65000.00
65000.00
65000.00
65000.00
65000.00
65000.00
ENCUMBERED
$
41252.21
41252.21
ExhibitA-3
Page 80f9
UNEXPENDED
BALANCE
CANCELLED
$
ExhibitA-3
Page 9 of9
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT
OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR
ENDED
DECEMBER
3 I 2014
2014 BUDGET
BUDGET
AFTER
MODIFICATION
EXPENDED
PAID OR
CHARGED
ENCUMBERED
RESERVED
UNEXPENDED
BALANCE
CANCELLED
MUNICIPAL
DEBT
SERVICE
- EXCLUDED
FROM
"CAPS"
Payment
of Bond Principal
$
792,000.00
$
792,000.00
$
792,000.00
$
$
$
Interest
on Bonds
286,876.26
286,876.26
286,876.26
Loan Repayment
for Principal
and Interest
34,784.87
34,784.87
34,784.87
Loan Repayments
for Principal
and Interest
MCIA Loan - Fire Truck
532,925.69
532,925.69
532,925.69
Loan Repayments
for Principal
and Interest
Environmental
Infratructure
Loan
107828.77
107828.77
100520.03
7308.74
Total Municipal
Debt Service
- Excl. from "CAPS"
1754415.59
1754415.59
1747106.85
7308.74
DEFERRED
CHARGES
- MUNICIPAL
EXCLUDED
FROM
"CAPS"
,_.
Deferred
Charges
'-l
Special
Emergency
Authorization
- 5 Years
135000.00
135000.00
135000.00
Total Deferred
Charges
- Municipal
Excluded
from "CAPS"
135000.00
135000.00
135000.00
Total General
Appropriations
for Municipal
Purposes
Excluded
from "CAPS"
4453470.72
4493470.72
4444909.77
41252.21
7308.74
Subtotal
General
Appropriations
16,338,092.75
16,338,092.75
15,122,258.17
169,197.60
1,039,328.24
7,308.74
Reserve
for Uncollected
Taxes
876435.00
876.435.00
876435.00
Total General
Appropriations
$
17214527.75
$
17214.527.75
$
15998693.17
$
169197.60
$
1039328.24
$
7308.74
REF
A-2
A-2
A-I
A,A-I
A,A-I
A-I
Disbursed
A-4
$
14,920,687.31
Reserve
for Uncollected
Taxes
A-7
876,435.00
Reserve
for State Grants
A-IO
66,570.86
Emergency
Approp,
40A:4-47
A-16
135000.00
$
15,998693.17
Note: See Notes to Financial
Statements
BOROUGH OF MIDDLESEX
Exhibit B
MIDDLESEX
COUNTY, NEW JERSEY
TRUST FUNDS
COMPARATIVE
BALANCE SHEET - REGULATORY BASIS
DECEMBER
31 2014 AND 2013
BALANCE
BALANCE
LIABILITIES,
RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31,2014
DEC. 31 2013
AND FUND BALANCE
REF.
DEC. 312014
DEC. 31.2013
Assessment Trust Fund:
Assessment Trust Fund:
Cash and Investments - Treasurer
B-6
$
24,944.73
$
24,758.36
Due to General Capital Fund
B-6
$
7,164.08
$
7,164.08
Assessment Liens Receivable
B-3
1470.00
1470.00
Due to Current Fund
B-6
13,684.88
13,498.51
Fund Balance
B- I
5565.77
5,565.77
Total Assessment Trust Fund
26,414.73
26,228.36
Total Assessment Trust Fund
26,414.73
26,228.36
Animal Control Fund:
Animal Control Fund:
Cash and Investments - Treasurer
B-6
23,505.33
15,744.48
Due to Current Fund
B-6
5,527.28
Due from State of New Jersey
B-6
5.40
0.60
Reserve for Animal Control Expenditures
B-6
17983.45
15745.08
Total Animal Control Fund
23510.73
15745.08
Total Animal Control Fund
23510.73
15745.08
Trust-Other Fund:
Trust-Other Fund:
Cash and Investments - Treasurer
B-6
454,441.93
377,504.99
Reserve for Unemployment
Insurance
B-6
214,182.62
234,136.58
I
Due from General Capital Fund
B-6
258,157.99
258,157.99
Reserve for Various Deposits
B-6
498,417.30
40 I,526.40
......
00
Total Trust-Other Fund
712599.92
635,662.98
Total Trust-Other Fund
712599.92
635662.98
Escrow Trust Fund:
Escrow Trust Fund:
Cash and Investments - Treasurer
B-6
341,559.90
469,782.24
Developers' Escrow - Water & Soil
B-6
19,462.00
18,937.00
Developers' Escrow Funds
B-6
322097.90
450845.24
Total Escrow Trust Fund
341,559.90
469782.24
Total Escrow Trust Fund
341559.90
469,782.24
Payroll Fund:
Payroll Fund:
Cash and Investments - Treasurer
B-6
183423.14
111238.89
Payroll Deductions Payable
B-6
183423.14
III 238.89
Total Payroll Trust Fund
183423.14
111,238.89
Total Payroll Trust Fund
183,423.14
III 238.89
Public Assistance Trust Fund:
Public Assistance Trust Fund:
Cash and Investments - Treasurer
B-6
9913.62
9913.42
Reserve for Public Assistance
B-6
9,913.62
9913.42
Total Public Assistance Trust Fund
9913.62
9,913.42
Total Public Assistance Trust Fund
9,913.62
9,913.42
Community Devlopement
Block Grant Fund:
Community Devlopement
Block Grant Fund:
Due from Midd. Cty CDBG
B-6
91,057.80
89575.80
Reserve for Comm. Dev. Block Expends.
B-6
91,057.80
89575.80
Total Comm. Develop. Block Grant Fund
91,057.80
89575.80
Total Comm. Develop. Block Grant Fund
91057.80
89575.80
$
1,388,479.84
$
1,358,146.77
$
1,388,479.84
$
1,358,146.77
Note:
See Notes to Financial Statements
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TRUST ASSESSMENT
FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2014
Balance - December 31, 2013
Balance - December 31,2014
B
B
Note: See Notes to Financial Statements
-19 -
Exhibit - B-1
$
5,565.77
$
5,565.77
Exhibit - C
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 31,2014 AND 2013
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
ASSETS
REF.
2014
2013
Cash and Investments - Treasurer
C-2
$
1,756,850.22
$
1,771,547.47
Grants - In - Aid, Loans and Other Receivable
C-4
1,849,555.57
3,685,122.11
Interfunds Receivable
C-7
7,164.08
7,164.08
Deferred Charges to Future Taxation:
Funded
C-5
12,824,784.44
13,289,649.61
Unfunded
C-6
3,261,654.87
5,418,262.98
$
19,700,009.18
$
24,171 ,746.25
LIABILITIES,
RESERVES
AND FUND BALANCE
General Serial Bonds
C-9
8,115,000.00
8,907,000.00
Capital Leases Payable - M.C.LA.
C-10
3,653,852.19
3,212,254.21
Loans Payable - N.J. Green Trust Fund - 1987
C-l1
52,874.70
73,298.92
Loans Payable - N.J. Green Trust Fund - 1989
C-12
101,125.75
111,937.08
Loans Payable - N.J. Infrastructure
C-15
901,931.80
985,159.40
Bond Anticipation Notes
C-16
2,878,258.00
Reserve for Encumbrances
Payable
C-8
665,454.66
3,319,673.58
Interfunds Payable
C-7
281,932.99
281,932.99
Improvement Authorizations:
Funded
C-8
1,550,331.19
1,335,580.60
Unfunded
C-8
724,796.17
3,097,578.49
Reserve for:
Capital Improvement Fund
C-14
157,959.58
94,559.58
Grants and Loans Receivable
C-13
548,336.45
2,735,344.56
Insurance Refund
C-13
4,838.08
4,838.08
To Pay Debt Service
C-13
63317.62
12588.76
$
19700009.18
$
24,171,746.25
Bonds and Notes Authorized but not Issued
C-17
$
383396.87
$
524182262.98
Note: See Notes to Financial Statements
- 20-
Exhibit-
D
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY,
NEW JERSEY
SWIMMING
POOL UTILITY
FUND
COMPARATIVE
BALANCE
SHEET - REGULATORY
BASIS
DECEMBER
31, 2014 AND 2013
BALANCE
BALANCE
LIABILITIES,
RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31,2014
DEC. 31, 2013
AND FUND BALANCE
REF.
DEC. 31, 2014
DEC. 31, 2013
perating
Fund:
Operating
Fund:
Cash and Investments
- Treasurer
D-5
$
488,512.61
$
443,815.50
Appropriation
Reserves
D-4, D-ll
$
130;632.07
$
80,674.20
Cash - Snack Bar Fund
D-5
3,078.86
3,075.09
Reserve
for Encumbrances
D-4, D-l1
2,185.38
35,260.50
Due from Swimming
Pool Capital Fund
D-13
83599.90
83599.90
Accounts
Payable
D-I0
32,971.01
20,006.06
Due to Current Fund
D-13
841.05
137.88
575 191.37
530490.49
Accrued
Interest
on Notes
D-20
3087.50
169,717.01
136,078.64
Fund Balance
o-r
405474.36
394411.85
Total Operating
Fund
575 191.37
530490.49
Total Operating
Fund
575 191.37
530490.49
apital Fund:
Capital Fund:
Cash and Investments
- Treasurer
D-5
918,480.03
N
Fixed Capital
D-8
666,291.56
666,291.56
Bond Anticipation
Notes
D-19
1,235,000.00
.......
Fixed Capital Authorized
and Uncompleted
D-9
1,650,000.00
350000.00
Improvement
Authorizations
Unfunded
D-18
1,074,531.03
93,670.00
Total Capital Fund
3,234,771.59
1,016,291.56
Capital Improvrnent
Fund
D-14
7,730.10
72,730.10
Due to Swimming
Pool Operating
Fund
D-17
83,599.90
83,599.90
Reserve
for:
Amortization
D-15
666,291.56
666,291.56
Deferred
Amortization
D-16
165,000.00
100,000.00
Fund Balance
D-2
2619.00
Total Capital Fund
3234771.59
1,016,291.56
$
3 809 962.96
$
1,546,782.05
$
3,809,962.96
$
1,546,782.05
There were Bonds and Notes Authorized
but not Issued
at December
31,2014
in the amount of$250,000.00.
(Exhibit
D-21)
Note:
See Notes to Financial
Statements
Exhibit - D-l
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY OPERATING FUND
COMPARATIVE
STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE
- REGULATORY
BASIS
FOR THE YEARS ENDED DECEMBER
31, 2014 AND 2013
REVENUE AND OTHER INCOME
YEAR 2014
YEAR 2013
Fund Balance Utilized
D-l, D-3
$
59,690.00
$
43,980.00
Fees - Membership
D-3
235,520.01
246,767.08
Miscellaneous
D-3
91,772.87
83,133.97
Other Credits to Income:
Unexpend. Balance of Appropriation
Reserves
Lapsed and Reserve for Encumb. Canceled
D-ll
76247.13
127395.97
Total Revenues
463,230.01
501,277.02
EXPENDITURES
Budget and Emergency Appropiations:
Operating
D-4
$
389,390.00
$
372,800.00
Accrued Interest Adjustment
D-20
3087.50
Total Expenditures
392,477.50
372,800.00
Excess/(Deficit)
in Revenues
70,752.51
128,477.02
FUND BALANCE
Balance - January 1
D
394,411.85
309914.83
465,164.36
438,391.85
Decreased by:
Utilized as Anticipated
Revenue
D- 1
59690.00
43980.00
Balance - Decem ber 31
D
$
405474.36
$
394411.85
Note:
See Notes to Financial Statements
- 22-
Increased by:
Premium on Sale of BAN's
Balance - December 31, 2014
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY CAPITAL FUND
STATEMENT OF CHANGE IN FUND BALANCE
REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2014
D-5
D
Note: See Notes to Financial Statements
- 23-
Exhibit - D-2
$
2,619.00
$
2,619.00
Exhibit - D-3
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY OPERATING FUND
STATEMENT OF REVENUES
- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2014
2014
EXCESS OR
REF.
BUDGET
REALIZED
(DEFICIT)
Fund Balance
D- 1
$
59,690.00
$
59,690.00
$
Fees - Membership
D-l, D-5
246,700.00
235,520.01
(11,179.99)
Miscellaneous
D- 1
83,000.00
91 772.87
8772.87
$
389,390.00
$
386,982.88
$
(2,407.12)
REF.
D-4
D- 1
Analysis of Realized Revenues:
Analysis of Miscellaneous
Revenues:
Snack Bar
D-7,D-12
$
9,847.46
Miscellaneous
Revenues
D-7
81,925.41
D- 1
$
91 772.87
Note:
See Notes to Financial Statements
- 24-
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
Exhibit - D-4
SWIMMING
POOL UTILITY OPERATING
FUND
STATEMENT OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR ENDED DECEMBER
31, 2014
EXPENDED
UNEXPENDED
2014
BUDGET AFTER
PAID OR
BALANCE
BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
Operating:
Salaries and Wages
$
204,890.00
$
204,890.00
$
174,041.80
$
$
30,848.20
$
Other Expenses
168,900.00
168,900.00
67,216.57
2,185.38
99,498.05
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Social Security System (O.A.S.I.)
13,600.00
13,600.00
13,314.18
285.82
State Unemployment
Insurance
2:000.00
2:000.00
2:000.00
N
Total Swimming
Pool Utility Appropriations
$
389:390.00
$
389:390.00
$
256:572.55
$
2:185.38
$
130:632.07
$
CJl
Ref.
D-3
D-1,D-5
D,D-1
D,D-1
Note:
See Notes to Financial
Statements
Note 1:
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
NOTES TO FINANCIAL
STATEMENTS - REGULATORY
BASIS
YEARS ENDED DECEMBER
31, 2014 AND 2013
FORM OF GOVERNMENT
The Borough of Middlesex operates under the legislative Borough ofN.J.S.A.
40A:60-1 et seq., which
provides for the election of a mayor to serve a term of four years and a council of six members serving
three-year terms. At its annual meeting, the council elects a president of the council who shall preside
at all its meetings when the mayor is not present. The mayor is the head of the municipal government
and the council
is the legislative
body. The Borough
has adopted
an administrative
code, which
provides
for the delegation
of a portion
of executive
responsibilities
to an administrator
and the
organization ofthe council into standing committees to oversee various Borough activities.
Note 2:
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A.
Reporting Entity
Except as noted below, the financial statements
of the Borough of Middlesex include every board,
body, officer or commission supported and maintained wholly or in part by funds appropriated by the
Borough of Middlesex, as required by N.J.S.A. 40A:5-5.
Accordingly, the financial statements of the
Borough of Middlesex do not include the operations of the municipal library.
B.
Description of Funds
The accounting policies of the Borough of Middlesex conform to the accounting principles applicable
to municipalities that have been prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey.
Such principles and practices 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.
Under this method of accounting, the
Borough of Middlesex accounts for its financial transactions through the following separate funds:
Current Fund - resources and expenditures
for governmental
operations of a general nature, including
Federal and State grant funds, except as otherwise noted.
Trust Fund - receipts, custodianship
and disbursement
of funds in accordance with the purposes for
which
each reserve
was created.
Pursuant
to the provisions
of NJ.S.A.
40A:4-39, the financial
transactions of the following funds and accounts are also reported within the Trust Fund:
Trust Assessment Fund
Animal Control Trust Fund
Unemployment Compensation Insurance Trust Fund
Dedicated Law Enforcement Trust Fund
Developer's Escrow Fund
Uniform Fire Safety Act - Penalty Monies (NJ.S.A.
52:27D-192 et seq.)
Disposal of Forfeited Property (P.L. 1985, Ch. 135)
Payroll Fund
Community Development Block Grant Fund
General
Capital Fund - resources,
including
Federal
and State Grants in aid of construction,
and
expenditures
for the acquisition
of general capital facilities,
other than those acquired through the
Current Fund, including the status of bonds and notes authorized for said purposes.
Swimming Pool Operating and Capital Funds - account for the operations and acquisition of capital
facilities of the municipally-owned
Swimming Pool.
- 26-
NOTES TO FINANCIAL
STATEMENTS
Note 2:
SUMMARY OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D):
B.
Description of Funds (Cont'd.)
Governmental
Fixed Assets - the Governmental
Fixed Asset System is used to account for fixed assets
used in governmental
fund type operations
for control
purposes.
All fixed assets
are valued
at
historical
cost or estimated
historical
cost if actual
historical
cost is not available
or any other
reasonable
basis, provided
such basis is adequately
disclosed
in the financial
statements.
Donated
fixed assets are valued at their estimated fair value on the date of donation.
No depreciation
is recorded
on general fixed assets.
The Governmental
Accounting
Standards
Board (GASB)
is the accepted
standards-setting
body for
establishing
governmental
accounting
and financial
reporting
principles.
GASB's
Codification
of
Governmental
Accounting
and Financial Reporting
Standards and subsequent
GASB pronouncements
are
recognized
as U.S.
generally
accepted
accounting
principles
(GAAP)
for
state
and
local
governments.
GAAP provides
for the issuance
of entity-wide
financial
statements
along with the
presentation
of separate fund financial statements that differ from the organization
of funds prescribed
under the regulatory
basis of accounting
utilized
by the Borough.
The resultant
presentation
of
financial position and results of operations in the form of financial statements is not intended to present
the basic financial statement presentation
required by GAAP.
C.
Basis of Accounting
Basis of Accounting
and Measurement
Focus - The basis of accounting as prescribed by the Division of
Local Government
Services
for its operating
funds is generally
a modified
cash basis for revenue
recognition
and a modified
accrual
basis for expenditures.
The operating
funds utilize a "current
financial
resources"
measurement
focus.
The accounting
principles
and practices
prescribed
for
municipalities
by the Division differ in certain respects from generally accepted accounting
principles
(GAAP)
applicable
to local government
units. The most significant
is the reporting
of entity-wide
financial statements,
which are not presented
in the accounting
principles
prescribed
by the Division.
The other more significant differences are as follows:
Revenues
- Revenues
are recorded
as received in cash except for statutory reimbursements
and grant
funds which are due from other governmental
units. State and Federal grants, entitlements
and shared
revenues received for operating
purposes
are realized as revenues when anticipated
in the Borough's
budget.
Receivables
for property
taxes and water and sewer consumer
charges
are recorded
with
offsetting
reserves
within the Current Fund.
Other amounts that are due to the Borough which are
susceptible
to accrual
are recorded
as receivables
with
offsetting
reserves.
These
reserves
are
liquidated and revenues are recorded as realized upon receipt of cash.
GAAP requires the recognition
of revenues
for general
operations
in the accounting
period
in which they become
available
and
measurable.
Expenditures
- For purposes of financial reporting,
expenditures
are recorded as "paid or charged" or
"appropriation
reserves".
Paid or charged
refers to the Borough's
"budgetary"
basis of accounting.
Generally,
these expenditures
are recorded
when an amount
is encumbered
for goods or services
through
the issuance
of a purchase
order in conjunction
with the encumbrance
accounting
system.
Reserves
for unliquidated
encumbrances
at the close
of the year are reported
as a cash liability.
Encumbrances
do
not
constitute
expenditures
under
GAAP.
Appropriation
reserves
refers
to
unexpended
appropriation
balances at the close of the year.
Appropriation
reserves are automatically
created and recorded as a cash liability, except for amounts which may be cancelled by the governing
body.
Appropriation
reserves are available
until lapsed at the close of the succeeding
year, to meet
specific
claims,
commitments
or contracts
incurred
and not recorded
in the preceding
fiscal year.
Lapsed
appropriation
reserves
are recorded
as income.
Generally,
unexpended
balances
of budget
appropriations
are not recorded as expenditures
under GAAP.
- 27-
NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Expenditures
(Cont'd.)
For the purpose of calculating the results of Current Fund operations, the regulatory basis of accounting
utilized
by the Borough
requires
that
certain
expenditures
be deferred,
and raised
as items
of
appropriation
in budgets
of succeeding
years.
These
deferred
charges
include
the two
general
categories
of
overexpenditures
and
emergency
appropriations.
Overexpenditures
occur
when
expenditures
recorded
as "paid or charged"
exceed
available
appropriation
balances.
Emergency
appropriations
occur when,
subsequent
to the adoption
of a balanced
budget, the governing
body
authorizes
the establishment
of additional
appropriations
based on unforeseen
circumstances
or for
other special purposes
as defined
by statute.
Overexpenditures
and emergency
appropriations
are
deducted from total expenditures
in the calculation of operating results and are established as assets for
Deferred
Charges
on the
Current
Fund
balance
sheet.
GAAP
does
not
permit
the
deferral
of
overexpenditures
to succeeding budgets.
In addition,
GAAP does not recognize
expenditures
based on the authorization
of an appropriation.
Instead,
the authorization
of special purpose
expenditures,
such as the preparation
of tax maps or
revaluation of assessable real property, would represent the designation of fund balance.
Compensated
Absences
- The Borough
has adopted
written
policies
via employee
contracts
and
municipal ordinances
which set forth the terms under which an employee may accumulated
earned, but
unused,
vacation
and sick
leave,
establishes
the limits
on such accumulations
and specifies
the
conditions
under which the right to receive payment for such accumulations
vests with the employee.
The Borough records expenditures
for payments
of earned and unused vacation and sick leave in the
accounting
period in which the payments are made.
GAAP requires that expenditures
be recorded in
the governmental
(Current)
fund
in an amount
that would
normally
be liquidated
with available
financial resources.
Property
Acquired
for Taxes - Foreclosed
property
is recorded
in the Current Fund at the assessed
valuation when such property was acquired and is fully reserved.
GAAP requires such property to be
recorded in the general fixed asset account group at the lower of cost or fair market value.
Sale of Municipal
Assets - Cash proceeds from the sale of Borough owned property are reserved until
utilized as an item of anticipated
revenue in a subsequent
year budget.
Year-end
balances
of such
proceeds
are reported
as a cash liability
in the Current
Fund.
GAAP
requires
that revenue
be
recognized in the accounting period that the terms of sales contracts become legally enforceable.
Interfunds
- Interfund receivables
in the Current Fund are recorded with offsetting reserves which are
created by charges to operations.
Income is recognized
in the accounting
period the receivables
are
liquidated.
GAAP does not require the establishment
of an offsetting reserves.
Interfund receivables
in
the other funds are not offset by reserves.
Inventories
of Supplies - The cost of inventories
of supplies for all funds are recorded as expenditures
at the time individual
items are purchased.
The cost of inventories
are not included
on the various
balance
sheets.
Although
the expenditure
method
of accounting
for purchases
of supplies
is in
accordance with GAAP, the cost of inventory on hand at the close of the year should be reported on the
balance sheet with an offsetting reserve for conformity with GAAP.
- 28-
NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Fixed Assets - Property
and equipment
purchased
by the Current and the General Capital Funds are
recorded
as expenditures
at the time of purchase
and are not capitalized.
Contributions
in aid of
construction
are not capitalized.
Governmental
Fixed Assets - New Jersey Administrative
Code 5:30-5.6 established
a mandate
for
fixed asset accounting by municipalities,
effective December 31, 1985, which differs in certain respects
from generally accepted accounting
principles,
requires the inclusion of a statement of Governmental
Fixed Assets of the Borough as part of the basic financial statements.
Public domain ("infrastructure")
general fixed assets consisting
of certain improvements
other than buildings,
such as roads, bridges,
curbs and gutters, streets and sidewalks and drainage systems are not capitalized.
No depreciation
has been provided for in the financial statements.
Accounting
for utility fund "fixed capital" remains
unchanged
under the requirements
of regulation
5:30-5.6.
Property
and equipment
purchased
by the Swimming
Pool Utility Fund are recorded
in the capital
account as cost and are adjusted for disposition and abandonment.
The amounts shown do not purport
to represent reproduction
costs or current value.
Contributions
in aid of construction
are not capitalized
the balance in the Reserve for Amortization
and Deferred
Reserve for Amortization
accounts
in the
utility capital fund represent charges to operations
for the cost of acquisitions
of property, equipment
and improvements.
The utility does not record depreciation
on fixed assets.
Grants Received
- Federal
and state grants, entitlements
or shared revenues
received
for purposes
normally financed through the Current Fund are recognized
when anticipated in the Borough's
Budget.
GAAP requires such revenues to be recognized in the accounting period when they become susceptible
to accrual, reduced by an allowance for doubtful accounts.
Disclosures
About Fair Value of Financial Instruments
- The following methods and assumptions
were
used to estimate
the fair value of each class of financial
instruments
for which it is practicable
to
estimate that value:
Cash and cash equivalents
and short-term
investments
- The carrying amount approximates
fair value
because of the short maturity of those instruments.
Long-term debt - The Borough's
long-term debt is stated at face value.
The debt is not traded and it is
not practicable
to determine
its fair value without
incurring
excessive
cost.
Additional
information
pertinent to the Borough's
long-term debt is provided in Note 3 to the financial statements.
Recent Accounting
Standards
GASB
issued
Statement
No.
69,
"Government
Combinations
and
Disposals
of
Government
Operations"
in January 2013. This Statement
establishes
accounting
and financial reporting standards
related to government combinations
and disposals of government
operations. As used in this Statement,
the term government combinations
include a variety of transactions
referred to as mergers, acquisitions,
and transfers of operations.
- 29-
NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting
(Cont'd.)
Recent Accounting
Standards (Cont'd.)
GASB
issued Statement
No. 70, "Accounting
and Financial
Reporting
for Nonexchange
Financial
Guarantees"
in April 2013.
Some governments
extend financial
guarantees
for the obligations
of
another
government,
a not-for-profit
entity,
or a private entity without
directly
receiving
equal or
approximately
equal value in exchange
(a nonexchange
transaction).
As a part of this nonexchange
financial guarantee,
a government
commits to indemnify the holder of the obligation
if the entity that
issued
the obligation
does
not fulfill
its payment
requirements.
Also,
some
governments
issue
obligations
that are guaranteed
by other entities
in a nonexchange
transaction.
The objective of this
Statement is to improve accounting
and financial reporting by state and local governments
that extend
and receive nonexchange
financial guarantees.
GASB
issued
Statement
No. 71, "Pension
Transition
for Contributions
Made
Subsequent
to the
Measurement
Date" in November 2013. The objective of this Statement is to address an issue regarding
application
of the transition
provisions
of Statement
No. 68, Accounting
and Financial Reporting for
Pensions. The issue relates to amounts associated
with contributions,
if any, made by a state or local
government
employer
or nonemployer
contributing
entity to a defined benefit pension plan after the
measurement
date of the government's
beginning net pension liability.
The
Borough
does
not
prepare
its financial
statements
in accordance
with
generally
accepted
accounting
principles.
The adoption of these new standards will not adversely effect the reporting on
the Borough's
financial condition.
Comparative
Data - Comparative
data for the prior year has been presented
in order to provide an
understanding
of changes on the Borough's
financial position and operations.
However,
comparative
data has not been presented
in each of the statements
since their inclusion would make the statements
unduly complex and difficult to read.
Certain reclassifications
have been made to the fiscal year 2013
financial statements to conform with classifications
used in fiscal year 2014.
- 30-
Note 3:
NOTES TO FINANCIAL
STATEMENTS
DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
The Local Bond Law, Chapter 40A:2 et seq, governs the issuance of bonds to finance
municipal capital expenditures.
The Borough's debt is summarized as follows:
A.
Summary of Municipal Debt for Capital Projects
Issued:
General:
Bonds and Notes
Bond Anticipation
Notes
Green Acres Loan
M.C.I.A. Capital Leases
NJ Environmental
Infrastructure
Loans
Swim Pool Utility
Bond Anticipation
Notes
Net Issued
Authorized
But Not Issued:
General:
Bonds and Notes
Swim Pool Utility
Bonds and Notes
Total Authorized
But
Not Issued
Net Bonds and Notes Issued and
Authorized
but not Issued
- 31-
2014
$
8,115,000.00
$
2,878,258.00
154,000.45
3,653,852.19
901,931.80
1,235,000.00
16,938,042.44
383,396.87
250,000.00
633396.87
$
17,571,439.31
2013
8,907,000.00
185,236.00
3,212,254.21
985,159.40
13,289,649.61
5,418,262.98
250,000.00
5,668,262.98
$
18,957,912.59
NOTES TO FINANCIAL STATEMENTS
Note 3:
DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
A.
Summary of Municipal Debt for Capital Projects (Cont'd.)
Summarized below are the Borough's individual bond and loan issues which were outstanding
at December 31, 2014 and 2013:
General Debt:
$2,552,000, General Improvement Bonds
of2004,
due in annual installments
of$175,OOO to $317,000 through Feb. 1,2014,
interest at 2.25% to 3.50%.
$9,865,000, General Improvement
Bonds
of2010,
due in annual installments
of $400,000 to $800,000 through Feb. 1,2025,
interest at 3.00% to 4.00%.
$
8,115,000.00
Bond Anticipation Notes - Mature 07/17115 @ 1.00%
2,878,258.00
Subtotal - Serial Bond Debt and BAN's for Capital Projects
Outstanding December 31
10,993,258.00
Loans Outstanding:
Green Acres Loans
154,000.45
NJ Environmental
Infrastructure Loans
901,931.80
MCIA Capital Equipment Loan - 2008
253,689.11
MCIA Capital Equipment Loan - 2013
2,540,307.16
MCIA Capital Equipment Lease - 2014
120,994.00
MCIA Capital Equipment Loan - 2014
738,861.92
Subtotal - Loans Outstanding
4,709,784.44
Subtotal General Debt
15,703,042.44
Swimming Pool Utility Debt:
Bond Anticipation Notes - Mature 09/29/15
@ 1.00%
1,235,000.00
Total Outstanding Debt
$
16,938,042.44
- 32-
$
317,000.00
8,590,000.00
8907,000.00
185,236.00
985,159.40
311,686.83
2,900,567.38
4,382,649.61
13,289,649.61
$
13,289,649.61
NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)
B.
Summary of Statutory Debt Condition - Annual Debt Statement
The summarized statement of debt condition which follows is prepared in accordance with the
required method of setting up the Annual Debt Statement and indicates a statutory net debt of:
Gross Debt
Deductions
Net Debt
Local School District Debt
Swimming Pool Utility Debt
General Debt
$3,745,000.00
1,485,000.00
16,086,439.31
$3,745,000.00
1,485,000.00
12,588.76
$16,073,850.55
$21,316,439.31
$5,242,588.76
$16,073,850.55
Net Debt $16,073,850.55
Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,416,317,744.33
=
1.13%
Gross Debt
Deductions
Net Debt
Local School District Debt
Swimming Pool Utility Debt
General Debt
$4,315,000.00
250,000.00
18,707,912.59
$4,315,000.00
250,000.00
12,588.76
$18,695,323.83
$23,272,912.59
$4,577 ,588. 76
$18,695,323.83
Net Debt $18,695,323.83
Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,473,970,140.33
=
1.27%
The Borough's Borrowing Power Under N.J.S.A. 40A:2-6 as Amended, at December 31,was as follows:
3 112%of Equalized Valuation Basis Municipal
Net Debt
$49,571,121.05
16073,850.55
$51,588,954.91
18,695,323.83
Remaining Borrowing Power
$33,497,270.50
$32,893,631.08
- 33-
NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
B.
Summary of Statutory Debt Condition - Annual Debt Statement
Calculation
of "Self-Liquidating
Purpose"
Swimming Pool Utility Per NJ.S.A.
40A: 2-45
Cash Receipts From Fees, Rents or
Other Charges for the year
$
463,230.01
$
501,277.02
Deductions:
Operating and Maintenance
Costs
389390.00
372 800.00
Excess in (Deficit)/Revenue
$
73 840.01
$
128477.02
C.
Schedule of Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding
at December 31, 2014
Calendar
General
Year
Principal
Interest
2015
$
675,000.00
$
258,531.25
2016
675,000.00
238,281.25
2017
700,000.00
217,656.25
2018
700,000.00
196,656.25
2019
700,000.00
175,656.25
2020
700,000.00
153,956.25
2021
775,000.00
129,678.13
2022
800,000.00
102,600.00
2023
800,000.00
74,600.00
2024
800,000.00
46,100.00
2025
790000.00
15800.00
Total
$ 8,115,000.00
$
1609515.63
D.
Loan Agreements
Department
of Environmental
Protection - Green Acres Program Loans
$
933,531.25
913,281.25
917,656.25
896,656.25
875,656.25
853,956.25
904,678.13
902,600.00
874,600.00
846,100.00
805800.00
$
9724515.63
New Jersey 1987 Green Trust Fund
The Borough has contracted for funding of Acquisition
of Property for Outdoor Recreation and Conservation
purposes.
The Borough has been awarded a loan amount of $328,000.
Pursuant to the provisions ofNJ.S.A.
40A: 2-1 et seq. the loan principal in the amount of $52,874.70 and $73,298.92 at December 31, 2014 and
2013 has been included in the calculation
of the Borough's statutory debt condition.
New Jersey 1989 Green Trust Fund
The Borough has contracted with Department
of Environmental
Protection to fund costs related to Mountainview
Phase II Project.
The Borough has been awarded a loan amount of $209,000.
Pursuant to the provisions of
N.J.S.A. 40A: 2-1 et seq. the loan principal in the amount of$1 01 ,125.75 and $111,937.08 at December 31,2014
and 2013 has been included in the calculation of the Borough's
statutory debt condition.
Terms of the above loans are included in their respective supplemental
schedules.
- 34-
NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
D.
Loan Agreements
(Cont'd.)
New Jersey Environmental
Infrastructure
Trust and Fund Loans
The Borough has contracted with the New Jersey Environmental
Infrastructure
Trust to fund costs related to
sewer system.
Information
on these loans and as included in their respective supplemental
schedule, is
as follows:
Infrastructure
Trust Loan:
Dated Date
Draw Down Date - Expected
Loan Amount
Principal Due Dates
Interest Rates
Interest Due Dates
Number of Payments
Final Payment
Oct. 15,2004
Nov. 4, 2004
$895,000
Sept. 1
2.110% - 5.160%
Mar. 1 & Sept. 1
19
Sept. 1, 2024
Infrastructure
Fund Loan (Principal Only):
Dated Date
Draw Down Date - Expected
Loan Amount
Principal Due Dates
Non-Interest
Loan
Number of Payments
Final Payment
Oct. 15,2004
Nov. 4, 2004
$844,827.50
Feb 1 & Aug. 1
38
Aug. 1,2024
Capital Equipment
and Improvement
Revenue Bonds, Series 2008
The Borough entered into a capital equipment loan agreement with the Middlesex County Improvement
Authority - Capital Equipment and Improvement
Revenue Bonds, Series 2008 in the amount of$572,745.83
for the acquisition
of 10 year capital equipment. The loan obligation is due in ten annual installments
commencing
with a principal payment of $48,577.05
for 2009 and remaining principal payments spread over
a nine year period with amounts ranging from $50,330.01 through $66,833.58
and bearing interests rates
ranging between 3.500% for calendar year 2009 and 4.200% for calendar year 2018.
Capital Equipment
and Improvement
Revenue Bonds, Series 2013
The Borough entered into a capital equipment loan agreement with the Middlesex County Improvement
Authority - Capital Equipment and Improvement
Revenue Bonds, Series 2013 in the amount of$2,900,567.38
for the acquisition
of 10 year capital equipment. The loan obligation is due in ten annual installments
commencing
with a principal payment of $360,260.22
for 2014 and remaining principal payments spread over
a nine year period with amounts ranging from $360,034.60
through $220,000.00
and bearing interests rates
ranging between 2.000% for calendar year 2014 and 4.000% for calendar year 2023.
- 35-
NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
D.
Loan Agreements
(Cont'd.)
Capital Equipment and Improvement
Revenue Bonds, Series 2014
The Borough entered into a capital equipment loan agreement with the Middlesex County Improvement
Authority - Capital Equipment and Improvement
Revenue Bonds, Series 2014 in the amount of$738,861.92
for the acquisition of 5 year capital equipment. The loan obligation is due in five annual installments
commencing
with a principal payment of$142,296.86
for 2015 and remaining principal payments spread over
a four year period with amounts ranging from $143,656.53 through $155,453.32 and bearing interests rates
ranging between 1.500% for calendar year 2015 and 3.000% for calendar year 2019.
Capital Equipment and Improvement
Revenue Bonds, Series 2014
The Borough entered into a capital equipment lease agreement with the Middlesex County Improvement
Authority - Capital Equipment and Improvement
Revenue Bonds, Series 2014 in the amount of$120,994.00
for the acquisition of 5 year capital equipment. The loan obligation is due in five annual installments
commencing
with a principal payment of $23 ,302.14 for 2015 and remaining principal payments spread over
a four year period with amounts ranging from $23,524.80 through $25,456.61 and bearing interests rates
ranging between 1.500% for calendar year 2015 and 3.000% for calendar year 2019.
The NJ Economic Development,
Environmental
Infrastructure
Loans and the MCIA Loans above have been
included in the calculation of the Borough's statutory debt condition.
- 36-
NOTES TO FINANCIAL
STATEMENTS
Note 4:
FUND BALANCES APPROPRIATED
Fund balances at December 31, 2014 and 2013 were appropriated and included as anticipated revenue
in their own respective funds for the year ending December 31,2014 and 2013 as follows:
FUND BALANCE
DECEMBER 31,2014
UTILIZED IN
SUCCEEDING BUDGET
Current Fund
Swimming Pool Utility Fund
$1,701,515.87
405,474.36
$1,019,770.00
66,224.00
FUND BALANCE
DECEMBER 31,2013
UTILIZED IN
SUCCEEDING BUDGET
Current Fund
Swimming Pool Utility Fund
$1,514,126.73
394,411.85
$996,000.00
59,690.00
Note 5:
DEPOSITS AND INVESTMENTS
The Borough
considers
change funds, cash in banks and certificates
of deposit as cash and cash
equivalents.
Deposits
New Jersey statutes permit the deposit of public funds in institutions located in New Jersey, which are
insured by the Federal Deposit Insurance Corporation
(FDIC) or by any other agencies of the United
States that insures deposits or the State of New Jersey Cash Management
Fund.
New Jersey statutes
require public depositories
to maintain collateral
for deposit of public funds that exceed insurance
limits to protect deposits from loss under the provisions
of the Governmental
Unit Deposit Protection
Act ("GUDPA").
GUDPA was enacted in 1970 to protect Governmental
Units from a loss of funds on
deposit with a failed banking institution in New Jersey.
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 Act.
Public depositories
include Savings and Loan
institutions, banks (both state and national banks) and savings banks the deposits of which are federally
insured.
All public depositories must pledge collateral, having a market value at least equal to five (5)
percent of the average daily balance of collected public funds; or if the public funds deposited exceed
75 percent of the capital funds of the depository, the depository must provide collateral having a market
value equal to 100 percent of the amount exceeding 75 percent, to secure the deposits of governmental
units.
All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or
a banking institution that is a member of the Federal Reserve System and has capital funds of not less
that $25,000,000. If a public depository fails, the collateral it has pledged, plus the collateral of all other
public depositories, is available to pay the full amount of their deposits to the Governmental Units.
At December
31,2014
and 2013, the book value of the Borough's
deposits were $7,450,415.85
and
$6,295,394.28
and the bank balances of the Borough's
cash and deposits amounted to $7,830,310.69
and $6,397,683.08,
respectively.
Of the bank
balance,
during
2014
and 2013,
$273,110.12
and
$304,888.05 was FDIC insured and $7,557,200.57
and $6,092,795.03
were GUDPA insured.
- 37-
NOTES TO FINANCIAL
STATEMENTS
Note 5:
DEPOSITS AND INVESTMENTS
(CONT'D.)
Deposits (Cont'd.)
At December
31, 2014, the Borough
has implemented
the disclosure
requirements
of Governmental
Accounting
Standards
Board Statement
No. 40 "Deposits
and Investment
Risk Disclosures"
(GASB
40) and accordingly the Borough has assessed the Custodial Risk, the Concentration
of Credit Risk and
Interest Rate Risk of its cash and investments.
(a) Custodial Credit Risk - The Borough's
deposits are exposed to custodial
credit risk if
they are not covered
by depository
insurance
and the deposits
are: uncollateralized,
collateralized
with securities held by the pledging financial institution,
or collateralized
with securities held by the pledging financial institution's
trust department
or agent but
no in the depositor-governments
name.
The deposit risk is that, in the event of the failure
of a depository
financial institution, the Borough will not be able to recover deposits or
will not be able to recover collateral securities that are in possession of an outside party.
The Borough's
investment
securities are exposed to custodial credit risk if the securities
are uninsured,
are not registered in the name of the Borough and are held by either: the
counterparty
or the counterparty's
trust department
or agent but not in the Borough's
name.
The investment
risk is that, in the event of the failure of the counterparty
to a
transaction,
the Borough
will not be able to recover
the value of the investment
or
collateral securities that in possession of an outside party.
(b) Concentration
of Credit Risk - This is the risk associated with the amount of investments
that Borough
has with anyone
issuer
that exceeds
5 percent
or more
of its total
investments.
Investment
issued or explicitly
guaranteed
by the U.S. government
and
investments in mutual funds, external investment pools, and other pooled investments are
excluded from this requirement.
(c) Credit Risk - GASB 40 requires that disclosure be made as to the credit rating of all debt
security
investments
except
for obligations
of the U.S.
government
or obligations
explicitly
guaranteed
by the U.S. government.
This is the risk that an issuer or other
counterparty
to an investment
will not fulfill its obligations.
In general, the Township
does not have an investment
policy regarding
Credit Risk except to the extent outlined
under the Borough's
investment policy.
The New Jersey Cash Management
Fund is not
rated.
(d) Interest Rate Risk - This is the risk that changes in interest rates will adversely affect the
fair value of an investment.
The Borough
does not have a formal policy that limits
investment
maturities
as a means of managing
its exposure to fair value losses arising
from interest rate fluctuations.
As of December
31, 2014, based upon the insured balances
provided
by the FDIC and NJGUDPA
coverage, no amounts of the Borough's
bank balances was considered
exposed to custodial credit risk.
In addition
based upon the existing
deposit and investment
practices,
the Borough
is generally
not
exposed to credit risks, concentration
of credit risks and interest rate risks for its investments
nor is it
exposed to foreign currency risks for its deposits and investments
Investments
New Jersey statutes permit the Borough to purchase the following types of securities:
1.
Bonds or other obligations
of the United States of America or obligations guaranteed by the United
States;
- 38-
NOTES TO FINANCIAL
STATEMENTS
Note 5:
DEPOSITS AND INVESTMENTS
(CONT'D.)
Investments (Cont'd.)
2.
Government money market mutual funds;
3.
Any obligation that a federal agency or a federal instrumentality
has issued in accordance with an
act of Congress, which security has a maturity date not greater than 397 days from the date of
purchase, provided such obligation bear a fixed rate of interest not dependent on any index or other
external factor;
4.
Bonds or other obligations
of the local unit or bonds or other obligations
of school districts of
which the local unit is a part or within which the school district is located;
5.
Bonds or other obligations,
having a maturity date of not more than 397 days from the date of
purchase, approved by the Division of Investment in the Department of the Treasury for investment
by local units;
6.
Local government investment pools;
7.
Deposits with the State of New Jersey Cash Management Fund established pursuant to section 1 of
P.L. 1997, c. 281 (C.52:18A-90.4);
or
8.
Agreements for the repurchase of fully collateralized securities, if:
a. the underlying securities are permitted investments pursuant to paragraphs (1) and (3);
b. the custody of collateral is transferred to a third party;
c. the maturity of the agreement is not more than 30 days;
d. the underlying
securities are purchased through a public depository as defined in section 1 of
P.L. 1970, c. 236 (C.19:9-41) and for which a master repurchase
agreement providing for the
custody and security of collateral is executed.
Investments
generally are shown by type, carrying amount, market value and level of risk assumed in
the holding
of the various
securities,
where applicable.
At year-end,
the Borough
maintained
its
invested funds in various money market and sweep accounts included in the above categorization of the
Borough's
deposits.
In addition
to the sweep accounts,
the Borough
held cash management
fund
investments
in the amount
of $239,566.56
and
$239,428.40
at December
31, 2014
and 2013,
respectively.
Cash & Cash Equivalents:
2014
Amount
2013
Amount
Total Cash & Cash Equivalents
$500.00
7,449,915.85
7,450,415.85
$500.00
6,294,894.28
6,295,394.28
Change Fund
Demand Accounts
Investments:
State ofNJ Cash Mgmt. Fund
239,566.56
$7.689.982.41
239,428.40
Total Cash, Cash Equivalents & Investments
$6.534.822.68
- 39-
Note 6:
NOTES TO FINANCIAL STATEMENTS
ASSESSMENT AND COLLECTION
OF PROPERTY TAXES
New Jersey statutes require that taxable valuation of real property be prepared by the Borough Tax
Assessor as of October 1 in each year and filed with the County Board of Taxation by January 10 of the
following year. Upon the filing of certified adopted budgets by the Borough, Local School District and
County the tax rate is struck by the board based on the certified amounts in each of the taxing districts
for collection to fund the budgets. Pursuant to statute, this process is to be completed on or before May
3, with a completed duplicate of the tax rolls to be delivered to the Borough Tax Collector on or before
May 13th.
Tax bills are prepared and mailed by the Collector of Taxes of the Borough annually and set forth the
final tax for the tax year.
The bill contains a credit for preliminary amounts billed previously with the
balance payable in equal installments on August 1st and November
1st of the tax year.
In addition, the
property owner receives a preliminary bill for the succeeding year based on one half of the prior year's
tax.
The preliminary
payments are due and payable on February
1st and May 1st. The New Jersey
Statutes allow a grace period of 10 days for each payment period and the Borough granted this option
to taxpayers.
Taxes become delinquent if not paid on the installment
dates and become subject to
interest penalties of 8% to 18% of the amount delinquent, and if a delinquency (including interest) is in
excess of $10,000.00 and remains in arrears after December 31, an additional flat penalty of6% may be
charged against the delinquency.
If taxes are delinquent on or after April 1st of the succeeding year,
the delinquent amount is subject to "Tax Sale" which places a tax lien on the property allowing the
holder to enforce the tax lien by collection or foreclosure.
New Jersey property tax laws establish a tax
lien on real estate as of January 1st of the current tax year even though the amount due is not known.
Note 7: PENSION AND RETIREMENT PLANS
Employees
of the Borough of Middlesex are enrolled in one of two cost sharing multiple-employer
public employee retirement systems: the Public Employees
Retirement
System (PERS) or the Police
and Firemen's Retirement
System (PFRS). The Division of Pensions in the Department of Treasury,
State of New Jersey, administers the PERS and PFRS plans.
The plans are funded annually based on
the projected
benefit method with aggregate
level normal cost and frozen initial unfunded accrued
liability.
The plans, which cover public employees
throughout
the state, do not maintain separate
records for each reporting unit and, accordingly,
the actuarial data for the employees of the Borough
who are members of the plan are not available.
Employees
enrolled in the PERS system contributed
6.78% of covered pay during the first half of 2014, then 6.92% of covered pay through to the 2014
year-end. Additional increases of 0.14% per annum will continue each July, until the contribution rate
reaches 7.5% in July 2018, which last increase is scheduled
to be 0.16%. Employees enrolled in the
PFRS system were required to contribute 10% of covered pay during 2013. The contributions in fiscal
years 2014 and 2013 were $255,353 and $270,283 for PERS and $605,973 and $624,712 for PFRS,
respectively.
The State of New Jersey, Department
of the Treasury,
Division
of Pensions
and Benefits
issues
publicly available financial reports that include the financial
statements
and required supplementary
information for PERS and PFRS.
These financial reports may be obtained by writing to the State of
New Jersey, Department of the Treasury, Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ
08625-0295.
Note 8:
POST-RETIREMENT
HEALTH CARE BENEFITS
Plan Description:
The Borough
of Middlesex
contributes
to the State Health
Benefits
Program
(SHBP),
a
cost-sharing,
multiple-employer
defined
benefit
post-employment
healthcare
plan
administered by the State of New Jersey Division of Pensions and Benefits.
SHBP was established in
1961 under N.J.S.A. 52:14-17.25 et seq., to provide health benefits to State employees, retirees, and
their dependents.
- 40-
NOTES TO FINANCIAL
STATEMENTS
Note 8:
POST-RETIREMENT
HEALTH CARE BENEFITS
(CONT"D.)
Rules governing the operation and administration
of the program are found in Title 17, Chapter 9 of the
New Jersey Administrative
Code. SHBP provides medical, prescription
drugs, mental health/substance
abuse, and Medicare Part B reimbursement
to retirees and their covered dependents.
The SHBP was extended to employees, retirees, and dependents
of participating
local public employers
in 1964. Local employers must adopt a resolution to participate
in the SHBP. In order to receive health
benefits,
retirees
must have been enrolled
in the pension
system for 25 years.
All active full time
employees are covered by the SHBP.
The State Health Benefits Commission
is the executive body established by statute to be responsible for
the operation
of the SHBP.
The State of New Jersey Division
of Pensions
and Benefits
issues a
publicly
available
financial
report
that
includes
financial
statements
and required
supplementary
information for the SHBP.
That report may be obtained by writing to: State of New Jersey Division of
Pensions
and
Benefits,
P.O.
Box
295,
Trenton,
NJ
08625-0295
or
by
visiting
their
website
www.state.nj.us/treasury/pensions.
Contributions
to pay for the health premiums
of participating
retirees in the SHBP are billed to the
Borough of Middlesex on a monthly basis. Currently there is no cost-sharing
requirement
for retirees.
The Borough
of Middlesex
contributions
to SHBP
for the year ended
December
31, 2014 were
$858,063.67,
which equaled
the required
contributions
for the year. There were approximately
42
retired participants
eligible at December 31, 2014.
Note 9:
ACCRUED
SICK AND VACA TION BENEFITS
The Borough has permitted
employees
to accrue unused sick pay, which may be taken as time off or
paid at a later date at an agreed upon rate. It is estimated that the cost of such unpaid sick and vacation
pay would approximate
$107,615.35
and $147,215.71
for 2014 and 2013.
This amount represents the
current value of all accumulations,
and is not intended to portray amounts that would be recorded under
GAAP. Expenditures
for payment of accrued sick and vacation benefits are recorded in the period in
which payments are made as part of the current year's operating budget appropriations.
In addition the
Police are entitled to compensation
hours capped at a maximum of 480 hours per officer. The estimated
cost of such pay would approximate
$298,397.34
and $300,522.23
for 2014 and 2013.
Note 10:
RISK MANAGMENT
The Borough, together with other governmental
units, is a member of the Garden State Municipal Joint
Insurance
Fund (the Fund). The Fund, which is organized
and operated
pursuant
to the regulatory
authority of the Departments
of Insurance and Community
Affairs, State of New Jersey, provides for a
pooling of risks, subject to established
limits and deductibles.
The Fund's governing board based upon
actuarial and budgetary
requirements
calculates payments to the Fund.
Each participant in the Fund is
jointly and severably
obligated for any deficiency
in the amount available to pay all claims. Lines of
coverage
provided
by the Fund
include
property;
boiler
and machinery;
equipment
floater;
auto
physical;
blanket
bond;
auto
liability;
general
liability;
law enforcement
liability;
public
official
liability and worker compensation
and employer liability.
At December 31,2014,
the Fund reported for all years combined, total assets of $37,541,477,
liabilities
and expenses of $36,638,899,
which includes case reserves of $24,257,282
and IBNR of $11,878,934
and net position for all years of $902,578.
- 41-
NOTES TO FINANCIAL
STATEMENTS
Note 10:
RISK MANAGEMENT
(CONT'D)
New Jersey Unemployment
Compensation
Insurance - The Borough has elected to fund its New Jersey
Unemployment
Compensation
Insurance under the "Benefit Reimbursement
Method".
Under this plan,
the Borough is required to reimburse the New Jersey Unemployment
Trust Fund for benefits paid to its
former employees
and charged to its account
with the State.
The Borough
is billed quarterly
for
amounts
due to the State. The following
table is a summary
of Borough
contributions,
employee
contributions,
reimbursements
to the State for benefits paid and the ending balance of the Borough's
trust fund for the 2014 and the previous two years
Borough
Fiscal
Contributions
Employee
Amount
Ending
Year
And Interest
Contributions
Reimbursed
Balance
2014
$1,653.96
$2,747.75
$24,355.67
$214,182.62
2013
125,866.07
1,009.97
12,703.18
234,136.58
2012
58,866.11
590.51
56,672.31
119,963.72
Note 11:
COMMITMENTS
AND CONTINGENCIES
The Borough participates
in several federal and state financial assistance
grant programs. Entitlement
to the funds
is generally
conditioned
upon
compliance
with
terms
and conditions
of the grant
agreements and applicable regulations,
including the expenditures
of funds for eligible purposes. These
programs are also subject to compliance and financial audits by the grantors or their representatives.
As
of December
31, 2014, the Borough does not believe that any material liabilities will result form such
audits.
As of the date of this report, the Borough has litigation pending that traditionally
would be covered
through the procurement
of liability insurance coverage's.
Note 12:
DEFERRED
COMPENSATION
The Borough
has instituted
a Deferred
Compensation
Plan pursuant
to section 457 of the Internal
Revenue Code and P.L. 1977, C. 381; P.L. 1978, C. 39; P.L. 1980, C. 78; and P.L. 1997, C. 116 of the
Statutes of New Jersey.
The Plan is an arrangement
whereby a public employer may establish a plan
and permit its employees
to voluntarily
authorize
a portion of their current salary to be withheld and
invested in one or more of the types of investments
permitted
under the governing regulations.
The
Borough has engaged a private contractor to administer the plan.
- 42-
NOTES TO FINANCIAL
STATEMENTS
Note 13:
INTERFUNDS
The following interfund balances remained on the balance sheet date at December 31, 2014:
Interfunds
Interfunds
Fund
Receivable
Payable
Current Fund
$20,053.21
$456,653.77
Grant Fund
480,428.77
Assessment Trust Fund
20,848.96
Animal Control Fund
5,527.28
Trust Fund
258,157.99
General Capital Fund
7,164.08
281,932.99
Swimming Pool UtiI. Oper Fund
83,599.90
841.05
Swimming Pool UtiI. Cap Fund
83,599.90
Total
$8491403.95
$8491403.95
These interfund balances are not an indication that the respective fund cannot meet its obligation.
The
interfund
amounts are reflective
of year-end
closing journals
and adjustments.
The balances resulted
from the time lag between the dates that (1) interfund goods and services are provided or reimbursable
expenditures
occur, (2) transactions
are recorded in the accounting
system, and (3) payments between
funds are made.
Note 14:
SUBSEQUENT
EVENTS
Subsequent
to the year ending December
31,2014
and through to the date of this report, the Borough
has authorized the following:
The Borough entered into an agreement
with the Middlesex
County Improvement
Authority
(MCIA)
for Various
2015 Capital Improvements
and acquisition
of Various Equipment
in an amount not to
exceed $1,240,000
on July 14,2015.
The cost of such improvements
and equipment
is to be financed
through
the issuance
of County-Guaranteed
Capital
Equipment
and Improvement
Revenue
Bonds,
Series 2015 of the MCIA.
The Borough
issued $4,113,000
General
Improvement
Bonds,
Series 2015. Principal
payments
are
from July 2016 through July 2025. The interest rates range from 1.00% to 2.50%. The Bonds are being
issued to pay $2,878,000 principal portion of $2,878,258 Bond Anticipation
Notes dated December
18,
2014 and maturing July 17,2015
and pay the principal amount of$I,235,000
Bond Anticipation Notes
dated September 30, 2014 and maturing September 29,2015.
- 43-
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART II
SINGLE AUDIT SECTION
- 44-
HODULIK
& MORRISON,P.A.
CERTIFIED
PUBLIC ACCOUNTANTS
REGISTERED
MUNICIPAL
ACCOUNTANTS
PUBLIC
SCHOOL ACCOUNTANTS
1102 RARITAN
AVENUE.
P.O. BOX 1450
HIGHLAND
PARK. NJ 08904
(732) 393-1000
(732) 393-11%
(FAX)
MEMBERS
OF:
AMERICAN
INSTITUTE
OF CPA'S
NEW JERSEY SOCIETY OF CPA'S
REGISTERED
MUNICIPAL
ACCOUNTANTS
OF NJ.
ANDREW
G. HODULIK. CPA. RMA. PSA
ROBERT S. MORRISON,
CPA, RMA, PSA
JOANN
BOOS,CPA,PSA
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
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex, New Jersey
We have audited, 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 and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey, the financial
statements - regulatory basis, of the Borough of Middlesex as of and for the year ended December 31,
2014, and the related notes to the financial statements, which collectively comprise the Borough of
Middlesex's financial statements and have issued our report thereon dated October 2, 2015. Our report
expressed a qualified opinion on the financial statements in conformity with this regulatory basis due to
the omission of the Statement of Governmental Fixed Assets. Our report also expressed a modified
opinion because of the departure from accounting principles generally accepted in the United States of
America as disclosed in Note 2.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough of
Middlesex'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 opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Borough of
Middlesex's internal control.
Accordingly, we do not express an opinion on the effectiveness of the
Borough of Middlesex'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.
-45 -
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
and therefore, material weaknesses or significant deficiencies
may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies
in internal control that we consider
to be material weaknesses.
We did identify certain deficiencies
in
internal control, described in the accompanying
schedule of findings and questioned costs that we consider
to be significant deficiencies.
(2014-1 and 2014-2).
Compliance and Other Matters
As part of obtaining reasonable
assurance
about whether the Borough of Middlesex's
financial statements
are free of 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, I?epartment
of Community Affairs, State of New Jersey.
We noted other matters
involving
internal
control
over financial reporting
that we have
reported
to
management of the Borough of Middlesex
in the General Comments section of the Report of Audit.
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 entity's
internal
control
or on compliance.
This report
is an integral
part of an audit performed
in accordance
with
Government Auditing Standards
in considering
the entity's
internal control and compliance,
Accordingly,
this communication
is not suitable for any other purpose.
HODULIK & MORRISON,
P.A.
Certified Public Accountants
Public School Accountants
Highland Park, New Jersey
October 2, 2015
- 46-
HODULIK & MORRISON,P.A.
CERTIFIED
PUBLIC ACCOUNTANTS
REGISTERED
MUNICIPAL
ACCOUNTANTS
PUBLIC SCHOOL ACCOUNT ANTS
1102 RARITAN
AVENUE,
P.O. BOX 1450
HIGHLAND
PARK, NJ 08904
(732) 393-1000
(732) 393-1196 (FAX)
MEMBERS
OF:
AMERICAN
INSTITUTE
OF CPA'S
NEW JERSEY
SOCIETY
OF CPA'S
REGISTERED
MUNICIPAL
ACCOUNTANTS
OF N.J.
ANDREW
G. HODULlK,
CPA, RMA, PSA
ROBERT
S. MORRISON,
CPA, RMA, PSA
JO ANN BOOS,
CPA, PSA
REPORT ON COMPLIANCE
FOR EACH MAJOR PROGRAM;
REPORT ON INTERNAL
CONTROL OVER COMPLIANCE
AND REPORT ON SCHEDULES
OF EXPENDITURES
OF
FEDERAL AWARDS AND STATE FINANCIAL
ASSISTANCE
REQUIRED
BY OMB CIRCULAR
A-I33 AND NJ OMB CIRCULAR
04-04
INDEPENDENT
AUDITOR'S
REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex, New Jersey
Report on Compliance for Each Major Federal and State Program
We have audited the Borough of Middlesex, County of Middlesex, New Jersey compliance with the types
of compliance requirements
described in the "U.S. Office of Management
and Budget (OMB) Circular A-
133 Compliance
Supplement"
and NJ OMB Circular 04-04 that could have a direct and material effect on
each of the Borough of Middlesex's
major federal and state programs for the year ended December
31,
2014.
The Borough of Middlesex'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 the requirement
of laws, regulations, contracts and grants
applicable to its federal and state programs.
Auditor's
Responsibility
Our responsibility
is to express an opinion on compliance for each of the Borough of Middlesex's
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; audit requirements
as prescribed
by the Division
of Local
Government
Services,
Department
of Community
Affairs,
State of New
Jersey;
OMB
Circular
A-I33,
"Audits of States, Local Governments,
and Non-Profit
Organizations"
and NJ OMB Circular 04-04.
Those
standards
and circulars
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 or state program
occurred.
An audit includes examining,
on a test
basis, evidence about the Borough of Middlesex's
compliance
with those requirements
and performing
such
other procedures as we considered necessary in the circumstances.
- 47-
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
on the Borough of
Middlesex's
compliance.
Opinion on Each Major Federal and State Program
In our opinion,
the Borough
of Middlesex,
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 31,2014.
Report on Internal Control Over Compliance
Management
of the Borough
of Middlesex
is responsible
for establishing
and maintammg
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 Borough of Middlesex's
internal control over
compliance
with the types of requirements
that could have a direct and material effect on each major
federal and 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 and state program and to
test and report on internal control over compliance in accordance with OMB Circular A-133 and NJ OMB
Circular 04-04, 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 Borough
of
Middlesex's
internal control over compliance.
Our consideration
of the 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.
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 a 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.
We consider the deficiencies
in
internal control over compliance
described
in the accompanying
schedule
of findings
and questioned
costs as items 2014-1 and 2014-2 to be significant deficiencies.
The Borough of Middlesex's
response
to the internal control over compliance
findings in our audit is
described
in the accompanying
schedule of findings and questioned
costs. The Borough of Middlesex's
response
was
not
subjected
to
the
auditing
procedures
applied
in the
audit
of compliance
and,
accordingly, we express no opinion on the response.
- 48-
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 requirements
of OMB
Circular
A-133
and NJ OMB
Circular
04-04. Accordingly,
this report is not suitable
for any other
purposes.
~rltdtlt
i J-I~,
II!
HODULIK & MORRISON,
P.A.
Certified Public Accountants
Registered Municipal Accountants
Highland Park, New Jersey
October 2, 2015
-49 -
SCHEDULES
OF EXPENDITURES
OF FEDERAL
AWARDS AND STATE FINANCIAL
ASSISTANCE
- 50-
Schedule
A
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
SCHEDULE
OF EXPENDITURES
OF FEDERAL
AWARDS
FOR THE YEAR ENDING
DECEMBER
31
2014
PROGRAM
FEDERAL
STATE
OR GRANT
2014
2014
FEDERAL
GRANT
OR!
CFDA
ACCOUNT
GRANT
AWARD
PROGRAM
AMOUNT
OF
CUMULATIVE
PROGRAM
TITLE
NUMBER
NUMBER
PERIOD
AMOUNT
RECEIPTS
EXPENDITURES
EXPENDITURES
Department
of Housing
& Urban
Development:
Community
Development
Block
Grant
Program
14.218
N/A
07/01106-06/30/07
$
63,900.00
$
$
$
63,471.80
Community
Development
Block
Grant Program
14.218
N/A
07/01111-06/30/12
53,818.00
38,523.00
Community
Development
Block
Grant
Program
14.218
N/A
07/01112-06/30/13
50,845.60
11,562.00
11,562.00
45,312.00
Community
Development
Block
Grant Program
14.218
N/A
07/01113-06/30/14
56,757.00
39,775.00
39,775.00
39,775.00
Community
Development
Block
Grant
Program
14.218
N/A
07/01114-06/30/15
52,819.00
Department
of Health
and Senior
Services
Area Plan Grant For Aging
93.044
046-4275-100-262-12
01/01112-12/31112
12,126.00
11,846.71
Area Plan Grant For Aging
94.044
046-4275-100-262-14
01/01114-12/31114
14,381.00
10,599.00
14,381.00
14,381.00
Department
of Law and Public
Safety
(Division
of Highway
Traffic
Safety)
Driving
While
Intoxicated
20.601
066-1160-100-113-05
01101/05-12/31105
17,189.52
6,333.85
Driving
While
Intoxicated
20.601
066-1160-100-113-06
01/01/06-12/31106
6,802.63
6,802.63
(J]
Driving
While
Intoxicated
20.601
066-1160-100-113-07
01/01107-12/31107
5,825.52
1,101.77
3,864.34
"""'
Driving
While
Intoxicated
20.601
066-1160-100-113-08
01101108-12/31108
4,568.89
1,175.20
Driving
While
Intoxicated
21.601
066-1160-100-113-09
01101/09-12/31/09
6,316.77
Driving
While
Intoxicated
22.601
066-1160-100-113-10
01/01110-12/3111
0
1,295.11
Driving
While
Intoxicated
23.601
066-1160-100-113-11
01/01/11-12/31111
2,570.99
Driving
While
Intoxicated
20.601
066-1160-100-113-12
01/01112-12/31/12
3,515.78
2,349.64
Driving
While
Intoxicated
20.601
066-1160-100-113-13
01/01/13-12/31113
4,699.42
Driving
While
Intoxicated
20.601
066-1160-100-113-14
01/01114-12/31/14
3,575.92
Hazard
Mitigation
Grant
97.039
066-1200-100-A76-14
01101114-12/31114
1,904,550.00
1,217,508.11
1,418,133.11
1,418,133.11
Department
of Environmental
Protection
New Jersey
Environmental
Infrastructure
Trust Loans
66.458
042-4860-510-032-08
SFY2004
813,500.00
132,259.43
709,930.27
$
1,617212.31
$
2361
898.55
Footnotes:
Grant Award/Amount
Reflects
Current
Year Awards
The Borough's
federal
grants are presented
within
the Borough's
overall
financial
statements
on
the modified
accrual
basis of accounting
with accounting
principles
prescribed
by the Division
of
Local
Government
Services,
Department
of Cornmunity
Affairs,
State of New Jersey,
which
is a
comprehesive
basis of accounting
other than generally
accepted
accounting
principles.
Schedule B
BOROUGH
OF MIDDLESEX
Page 1 of2
MIDDLESEX
COUNTY. NEW JERSEY
SCHEDULE
OF EXPENDITURES
OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDING DECEMBER
31 2014
PROGRAM
OR GRANT
STATE FUNDING
GRANT
STATE
AWARD
PROGRAM
AMOUNT OF
CUMULATIVE
DEPARTMENT
STATE PROGRAM
PERIOD
ACCOUNT
NUMBER
AMOUNT
RECEIPTS
EXPENDITURES
EXPENDITURES
Department
of Law and
Public Safety
Drunk Driving Enforcement
Fund
111/05-12/31105
066-1160-100-113-05
s
26,835.50
s
$
s
15,979.83
Drunk Driving Enforcement
Fund
111/07-12/31107
066-1160-100-113-07
5,599.52
3,022.33
Drunk Driving Enforcement
Fund
1/1/08-12/31/08
066-1160-100-113-08
4,568.89
2,480.30
Drunk Driving Enforcement
Fund
1/1/09-12/31/09
066-1160-100-113-09
7,348.67
1,031.90
Drunk Driving Enforcement
Fund
111110-12/31/10
066-1160-100-113-10
6,470.31
5,175.20
Drunk Driving Enforcement
Fund
111/11-12/31/11
066-1160-100-113-11
4,264.04
1,693.05
Drunk Driving Enforcement
Fund
1/1112-12/31112
066-1160-100-113-12
3,515.78
2,349.64
Drunk Driving Enforcement
Fund
1/1/13-12/31/13
066-1160-100-113-13
4,699.42
Drunk Driving Enforcement
Fund
1/1114-12/31/14
066-1160-100-113-14
3,575.92
3,575.92
Body Armor Replacement
Fund
1/1/09-12/31/09
066-1020-718-001-09
5,849.00
2,390.66
5,849.00
Body Armor Replacement
Fund
1/1111-12/31111
066-1020-718-001-11
6,177.81
753.14
2,265.33
Body Armor Replacement
Fund
1/1/12-12/31/12
066-1020-718-001-12
2,544.98
2,145.00
Body Armor Replacement
Fund
111/13-12/31/13
066-1020-718-001-13
4,058.08
1,571.90
2,371.40
Body Armor Replacement
Fund
1/1/14-12/31/14
066-1020-718-001-14
3,354.13
3,354.13
1,525.20
1,525.20
(.)l
(Division of Highway Traffic
N
Safety)
Department
of Transportation
Livable Communities
Grant
111/05-12/31/05
042-4875-100-353-05
13,282.50
13,282.07
Livable Communities
Grant
1/1/06-12/31/06
042-4875-100-353-06
28,800.00
28,776.00
Reconstruction
of Roads including Drainage
1999
078-6320-480- XXX
120,018.75
118,967.65
Reconstruction
of Roads including Drainage
1999
078-6320-480-XXX
150,000.00
148,684.82
Reconstruction
of Roads including Drainage
2001
078-6320-480-XXX
250,000.00
247,010.12
Const of Bikeway - Fitzsimmons
Park
to Mountainview
Park
2002
078-6320-480-XXX
50,000.00
49,709.19
Downtown
and Business Improvements
2003
078-6320-480-170-09
300,000.00
1,534.63
296,259.56
Reconstruction
of Roads
2004
078-6320-480-XXX
225,000.00
194,247.43
Reconstruction
of Roads
2005
078-6320-480-XXX
200,000.00
145,488.52
Reconstruction
of Roads
2006
078-6320-480- XXX
200,000.00
199,234.07
Reconstruction
of Roads
2007
078-6320-480-XXX
240,000.00
238,222.85
Highway Planning and Construction
- BeechwoodIMountain
2010
078-6320-480- XXX
625,000.00
23,395.18
532,033.41
Highway Planning and Construction
- Parker
2011
078-6320-480-XXX
300,000.00
285,711.66
Highway Planning and Construction
- Howard
2012
078-6320-480- XXX
300,000.00
73,558.43
25.37
281,749.43
Highway Planning and Construction
- Fairview
2013
078-6320-480- XXX
300,000.00
246,774.80
246,774.80
Highway Planning and Construction
- Marlborough
2014
078-6320-480-XXX
300,000.00
STATE FUNDING
DEPARTMENT
Department
of Environmental
Protection
Department
of Human
Services
Footnotes:
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
Schedule
B
Page 2 of2
SCHEDULE
OF EXPENDITURES
OF STATE FINANCIAL
ASSISTANCE
FOR THE YEAR ENDING
DECEMBER
31 2014
PROGRAM
OR GRANT
GRANT
STATE
AWARD
PROGRAM
AMOUNT
OF
CUMULATIVE
STATE PROGRAM
PERIOD
ACCOUNT
NUMBER
AMOUNT
RECEIPTS
EXPENDITURES
EXPENDITURES
Clean Communities
Program
1/1/06· 12/31/06
042-4900·765·004·06
12,600.06
11,836.75
Clean Communities
Program
111/07· 12/31/07
042·4900·765·004·07
17,014.70
16,264.70
Clean Communities
Program
1/1108·12/31/08
042·4900·765·004·08
17,044.67
17,005.47
Clean Communities
Program
111/09· 12/31109
042·4900·765·004·09
21,627.08
21,211.80
Clean Communities
Program
111110·12/31/1 0
042·4900·765·004·
10
22,768.40
19,135.94
Clean Communities
Program
111/11·12/31111
042·4900·765·004·
11
21,531.50
21,523.97
Clean Communities
Program
1/1112· 12/31112
042·4900·765·004·
12
21,167.23
9,883.05
Clean Communities
Program
1/1/14· 12/31114
042-4900·765·004·
14
24,852.04
1,827.14
1,827.14
Pasic River Basin Local Acquisition
Grant
111/14·12/31114
042·4800·727·020·
14
634,850.00
421,250.00
494,750.00
494,750.00
New Jersey Environmental
Infrastructure
Trust Loans
Infinite
N/A
813,500.00
132,259.43
709,930.27
Municipal
Alliance
Program
111/10· 12/3111 0
082·2000·100·044·10
13,884.00
13,836.60
Municipal
Alliance
Program
111113·12/31/13
082·2000·100·044·13
17,355.00
6,573.75
17,355.00
Municipal
Alliance
Program
1/1/14· 12/31/14
082·2000·
100·044·14
17,355.00
17355.00
17355.00
$
930,736.20
$
4,443 955.45
The Borough's
state grants are presented
within the Borough's
overall
financial
statements
on the
modified
accrual
basis of accounting
in accordance
with accounting
principles
prescribed
by the Division
of
Local
Government
Services,
Department
of Community
Affairs,
State of New Jersey, which is a
comprehensive
basis of accounting
other than generally
accepted
accounting
principles.
N/A·
Not Available
or Not Applicable
NOTE 1:
NOTE 2:
NOTE 3:
NOTE 4:
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX,
NEW JERSEY
NOTES TO SCHEDULE
OF EXPENDITURES
OF
FEDERAL AWARDS AND STATE FINANCIAL
ASSISTANCE
DECEMBER
31, 2014
GENERAL
The accompanying
schedules of expenditures
of federal awards and state financial
assistance present the activity of all federal and state financial assistance programs
of the Borough of Middlesex.
The Borough is defined in Note I(A) to the financial
statements.
All federal awards received directly from federal agencies, as well as
federal financial
assistance
passed through other government
agencies is included
on the schedule of expenditures for federal awards.
BASIS OF ACCOUNTING
The accompanying
schedule of expenditures
of federal awards and state financial
assistance
is presented
using the basis of accounting
as described
in Note 2 to the
Borough's
financial statements.
RELATIONSHIP
TO GENERAL
FINANCIAL
STATEMENTS
Amounts
reported in the accompanying
schedules agree with amounts reported in
the Borough's
financial statements.
RELATIONSHIP
TO FEDERAL AND STATE FINANCIAL
REPORTS
Amounts reported in the accompanying
schedules agree with the amounts reported
in the related federal and state financial reports, where required.
- 54-
Schedule
C
Page 10f5
BOROUGH
OF MIDDLESEX
COUNTY
OF MIDDLESEX,
NEW JERSEY
SCHEDULE
OF FINDINGS
AND QUESTIONED
COSTS
FOR THE
YEAR ENDED
DECEMBER
31, 2014
Section 1- Summary of Auditor:S Results
Financial
Statements
Type of auditor's
report issued:
Modified
Internal
Control
over financial
reporting:
1) Material
weakness( es) identified?
_____
Yes __
......;:X.!,_
__
No
2) Significant
deficiencies
identified
that are
not considered
to be material
weaknesses?
__
..;:.X,.:;._
__
Yes
No
Noncompliance
material
to general-purpose
financial
statements
noted?
_____
Yes __
~X:;____
No
Federal Awards
Internal
Control
over major programs:
1) Material
weakness( es) identified?
______
Yes
_..;:.X,.:;._
No
2) Significant
deficiencies
identified
that are
not considered
to be material
weaknesses?
___
..;:.X,.:;._
__
Yes
None Reported
Type of auditor's
report issued on compliance
for major programs:
Unmodified
Any audit findings
disclosed
that are required
to be reported
in
accordance
with section
.510(a) of Circular A-l33?
Yes __
_..;:.X,.:;._
No
Identification
of major programs:
CFDA Number(s)
Name of Federal
Program
or Cluster
97.039
Hazard
Mitigation
Grant
Dollar threshold
used to distinguish
between
type A and B programs:
$=====30=0:a:;0=:0=0.:=00=
Auditee
qualified
as low-risk
auditee?
______
Yes
......;:X.!,_
__
No
- 55-
Schedule C
Page 2 of5
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2014
(continued)
Section 1- Summary of Auditor s Results (cont'd.)
State Awards
Dollar threshold used to distinguish between type A and B programs:
$========3~0~0~0=00=.0=0~
Auditee qualified as low-risk auditee?
__________
Yes
~X~
No
Type of auditor's report issued on compliance for major programs:
Unmodified
Internal Control over major programs:
1) Material weakness( es) identified?
__________
Yes
~X~
No
2) Significant deficiencies identified that are
not considered to be material weaknesses?
____ ...:.X...::,_Yes
None Reported
Any audit findings disclosed that are required to be reported in
accordance with NJOMB Circular Letter 04-04?
__________
Yes
.....:...;X~
No
Identification of major programs:
State Account Numbert's)
Name of State Program
042-4800-727 -020
Passaic River Basin Local Acguisition Grant
- 56-
Schedule C
Page 3 of5
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2014
(continued)
Section II - Financial Statement Findings
This section identifies significant deficiencies, material weaknesses, and instances of noncompliance
related to the general-purpose financial statements that are required to be reported in accordance with
chapter 5.18 of Governmental Auditing Standards.
Significant Deficiencies:
2004-1 - General Ledger Maintenance
The Borough's Trust Funds general ledger includes cash receipts and cash disbursements posted to the various
reserve accounts, however they were not posted to the corresponding cash accounts. Similarly, the General Capital
Funds indicated cash receipts and cash disbursements posted to the various assets and liabilities, but not to its cash
accounts. As a result debits did not equal credits, nor were the ledgers in proof with cash transactional activity.
2004-2 Cash Receipts and Disbursements Journals
The cash receipts and disbursement journals in the general capital fund were found to be incomplete, with omitted
entries noted. These omissions related directly to tracking of collections and payments of FEMA and NJOEM grant
funds relating to Ordinance 1808-12 for the acquisition and demolition of certain flood prone properties.
- 57-
Schedule C
Page 4 of5
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2014
(continued)
Section III - Federal Awards and State Financial Assistance Findings and 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
OMB circular A-133 and New Jersey OMB's Circular 04-04
CURRENT YEAR FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
Hazard Mitigation Grant - CFDA - 97.039
Passaic River Basin Local Acquisition Grant - 042-4800-727-020
2004-1 - General Ledger Maintenance
Criteria:
The Borough's General Ledger for the General Capital Fund was not complete in all instances
Condition:
Cash receipts and cash disbursements were posted to the various assets and liabilities, however they were not
posted to the respective cash accounts.
Assets and liabilities were not in agreement.
The financial information processing system used by the Borough does not link postings from the cash journals to
the general ledger.
Recommendation:
The Borough resolve the issues relating to its financial information processing system.
Borough Response:
The Borough is in agreement and will resolve this issue.
- 58-
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31,2014
(continued)
Section III - Federal Awards and State Financial Assistance Findings and 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
OMB circular A-133 and New Jersey OMB's Circular 04-04
Hazard Mitigation Grant - CFDA - 97.039
Passaic River Basin Local Acquisition Grant - 042-4800-727-020
2004-2 Cash Receipts and Disbursements Journals
Criteria:
The Borough post all cash receipts and cash disbursements to journals
Condition:
Cash receipts and cash disbursements relating to FEMA and NJOEM grants were not
posted to the Borough's financial information processing system.
Cash receipts and cash disbursements for grant related items were understated.
Changes in personnel within the Finance Office.
Recommendation:
The Borough post all transactions to its financial information processing system.
Borough Response:
The Borough is in agreement and will resolve this issue.
- 59-
Schedule C
Page 5 of5
Schedule D
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2014
(continued)
Section I - Summary of Prior Year Findings
SUMMARY OF PRIOR YEAR FINDINGS
There were no prior year findings.
- 60-
BOROUGH OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART III
SUPPLEMENTARY
SCHEDULES
- 61-
CURRENT FUND
- 62-
CURRENT
FUND
SCHEDULE
OF CASH
ExhibitA-4
Cash Balance December
31 , 2013
.
Increased
by Cash Receipts
Miscellaneous
Revenue NotAnticipated
.
Due NJ Sr Citizens
and Veterans Deductions
.
Taxes Receivable
.
Miscellaneous
Anticipated
Revenue
.
Sewer Rents Collections
.
Interfunds
.
Various Accounts
Payable & Reserves
.
Petty Cash Returned
.
A
A-I, A-8
A-6
A-7
A-8
A-9
A-10
A-14
A-5
207,584.13
146,676.02
39,602,856.59
3,034,126.85
494,305.62
56,682.08
205,441.52
300.00
$
3,306,942.24
Total Cash Receipts
.
Decreased
by Disbursements
Budget Appropriations
.
Interfunds
.
Appropriation
Reserves
.
Tax Overpayments
.
Taxes Payable
.
Various AlP, & Reserves
.
Petty Cash Advanced
.
A-3
A-lO
A-II
A-12
A-13
A-14
A- 5
(14,920,687.31
)
(65,956.33 )
(448,215.39)
(23,032.99)
(27,667,623.08)
(444,327.91)
(300.00)
43,747,972.81
Total Cash Disbursements
..
Cash Balance December
31, 2014
.
A
- 63-
(43,570,143.01)
$ ==~3,=48=4~,7=72=.0=4=
ExhibitA-5
CURRENT FUND
SCHEDULE OF PETTY CASH AND CHANGE FUNDS
Balance
Balance
December 31,
December 31,
2013
Advanced
Returned
2014
Change Fund
Collector - Treasurer
$
200.00
$
$
$
200.00
Municipal Court
150.00
150.00
Construction
50.00
50.00
Borough Clerk
50.00
50.00
Swim Pool Utility
50.00
50.00
Petty Cash Funds:
Borough Clerk
100.00
100.00
I
Police
100.00
100.00
(j\~
Recreation
100.00
100.00
I
$
500.00
$
300.00
$
300.00
$
500.00
Ref.
A
A-4
A-4
A
Exhibit - A-6
SCHEDULE
OF DUE FROM STATE OF NEW JERSEY -
FOR ALLOWABLE
DEDUCTIONS
PER CHAPTER 20, P.L. 1976
CURRENT FUND
Balance - December 31, 2013
A
$
30,168.32
Increased by:
Allowable Deductions per
Tax Billings
2014 Sr. Citizens and Vet.
Ded. Allowed by Collector
A-6
149,500.00
A-6
2,000.00
151 500.00
181,668.32
Decreased by:
Collected
A-4
146676.02
Balance - December 31,2014
A
$
34,992.30
Analysis of Sr. Citizens & Veterans
Deductions Allowed - 2014 Taxes
Per Tax Billings
Allowed (Disallowed)
by Tax Collector (Net)
A-6
A-6
$
149,500.00
2000.00
A-7
$
151 500.00
- 65-
ExhibitA-7
CURRENT
FUND
SCHEDULE
OF PROPERTY
TAXES RECEIVABLE
AND LEVY ANALYSIS
Property
CYI5
CYI4
CYI3
Tax
Acquired
Total
Prepaid
Current
Delinquent
Arrears
Liens
for Taxes
Ref.
Balance
12/31/2013
$
2,233,081.63
$
(503,934,61)
$
$
894,628,05
$
419,249,19
$
1,423,139,00
Billings 1Levy:
Original Levy"
A-7
39,883,223.09
39,883,223.09
Added & Omitted
. A-7
24,374.05
24,374.05
TTL Interest & Costs
A-9
771.94
771.94
Canceled Taxes ..
(2,414.63)
(2,414.63)
Transfers
Tax Lien"
(20,129.22)
20,129.22
Revenue
Sr.Citizens & Vets"
Original Levy"
A-6
(149,500.00)
(149,500.00)
AllowedlDisallowed
..
A-6
(2,000.00)
(2,000.00)
Cash Receipts"
A-4
(39,602,856.59)
(167,198.35)
(38,406,311.51)
(894,628.05)
(134,718.68)
Prepaid Applied ..
503,934.61
(503,934.61)
0\
Balance
12/31/2014."
$
2,384.679.49
$
(167,198.35)
$
823,307.17
$
$
$
305,431.67
$
1,423,139.00
0\
Ref.
A
A,A-7
A
A
A
A
Analysis 0[2014
ProllerlY Tax LeY)::
Current
Tax Yield:
Tax LeY)::
Ref.
Taxes Realized:
Ref
General Purpose Tax
$
39,883,223.09
Local School District Tax
A-15
$
22,412,494.00
Sr. Citizens & Vets
A-6,A-7
$
151,500.00
Added Taxes
24374.05
County Tax
A-J3
5,183,124.66
Cash Receipts
A-7
38,406,311.51
County Open Space
A-13
422,848.27
Prepayments
A-7
503,934.61
$
39907
597.14
Due County - Added & Omitted
A-13
3,450.15
Subtotal
A-I
39,061,746.12
Res. For Uncoil. Tax
A-3
876435.00
28,021,917.08
39,938,181.12
Local Tax for Municipal
Purposes
A-2
11,394,628.30
Allocated to School
Minimum
Library Tax
A-2
467,325.64
and County
A-13,A-15
(28,021,917.08)
Add: Additional
Tax Levied
23726.12
A-2
$ II 916264.04
$
39,907597.14
ExhibitA-8
CURRENT
FUND
SCHEDULE
OF NONBUDGET
REVENUES
& VARIOUS ACCOUNTS
RECEIVABLES
Accrued!
Cash
Dec. 31,2013
Adjustments
Receipts
Dec. 31, 2014
Revenue Accounts Receivable:
Ref.
Fines and Costs - Municipal Court
$
30,903.49
32,254.84
$
(30,903.49)
$
32,254.84
A-2
30,903.49
32,254.84
{30,903.49}
32,254.84
Non - Budget Revenue:
Easements
13,500.00
(13,500.00)
Health Benefits Contrib. - Library
36,452.88
(36,452.88)
Abondoned
Property
4,500.00
(4,500.00)
Police Outside Service Admin
12,047.30
(12,047.30)
Duplicate Rec & Tax Bills
460.00
(460.00)
Property Tax List
310.00
(310.00)
Landlord Registration
36,480.00
(36,480.00)
Senior Citizens & Veterans Deduct. - Admin. Fee
2,933.52
(2,933.52)
0\
Lawn Maintenance
15,703.43
(15,703.43)
"'I
Public Assistance - Hurricane
Sandy
46,125.68
(46,125.68)
Towing License
875.00
(875.00)
Miscellaneous
38.196.32
{38.196.32}
A-I, A-2,A-4
207,584.13
{207,584.13}
Total. ..............................................................................
$
30.903.49
$
239,838.97
$
(238.487.62}
$
32,254.84
Ref.
A
Reserve
A-4
A
Ref.
Analysis of Miscellaneous
Revenues:
Account Receivable
Collections
A-4
$
30,903.49
Current Year Collections
A-4
3,003.223.36
Subtotal
A-4
3,034,126.85
Sewer Collections
A-9
269,503.75
Various Reserves
A-14
151,941.95
Interest on Investments
A-I0
4,398.72
Grants Realized - Grant Fund
A-lO
49.215.86
A-2
$
3,509,187.13
Exhibit - A-9
SCHEDULE
OF SEWER FLOW CHARGES
RECEIVABLE/OVERPAYMENTS
CURRENT
FUND
Balance - December 31, 2013
A
Increased by:
Sewer Flow Charges:
User Charges
Reserve
Decreased by:
Collected - Current Year
Collected - Overpayments
Collected - Prior Year (Net)
$
203,461.91
224,801.87
66041.84
A-4,A-8
A-4
A-4,A-8
Balance - December 31, 2014
A-9
Collection Analysis:
Budget Revenues
Revenue Accounts Receivable
Sewer Overpayments
A-9
A-9
A-4
A-4,A-8
Analysis of Balance:
Sewer Flow Charges Receivable
Sewer Flow Charge Overpayments
A
A
- 68-
$
135,110.66
155839.00
290,949.66
494305.62
$
(203,355.96)
$
203,461.91
66,041.84
224,801.87
$
494,305.62
$
21,445.91
(224,801.87)
$
(203,355.96)
Exhibit A-1O
CURRENT FUND
STATEMENT OF INTERFUNDS RECEIVABLE/ PAYABLE
Cash
Cash
Budget
Budget
Dec. 31,2013
Receipts
Disbursements
Revenues
Appropriations
Adjustments
Dec. 31,2014
Interfunds
Animal Control Fund ....................................
$
(5,527.28)
$
(5,527.28)
Trust Assessment Fund ...................................
$
(13,498.51 )
$
(186.37)
(13,684.88)
Swimming Pool Utility Operating Fund ...............
(137.88)
3,509.18
(4,212.35)
(841.05)
GrantFund .................................................
452,082.20
53,172.90
(65,956.33)
(49,215.86)
66,570.86
456,653.77
Tota1..............................................................
$
438,445.81
$
56,682.08
$
(65,956.33} $
(53,614.58} $
66,570.86
$
(5,527.28} $
436,600.56
Ref.
A
A-4
A-4
A-l,A-8
A-l,A-3
A-I
A
Q'\.
\.0
Receivables
$
(13,636.39)
$
(20,053.21)
Payables
452,082.20
456653.77
$
438,445.81
$
436,600.56
ExhibitA-11
Page lof6
SCHEDULE
OF 2013 APPROPRIATION
RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC. 31. 2013
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
Ollerations Within "CAPS"
Mayor and Council
Salaries and Wages
$
0.24 $
$
0.24 $
$
0.24
Other Expenses
4,142.98
1,790.67
5,933.65
2,190.67
3,742.98
Municipal Clerk
Salaries and Wages
84.89
84.89
84.89
Other Expenses
779.36
1,715.20
2,494.56
1,715.20
779.36
Postage for All Departments
Other Expenses
744.02
267.00
1,011.02
267.00
744.02
Printing and Advertising
Other Expenses
5,138.62
2,220.00
7,358.62
2,648.00
4,710.62
Elections
Other Expenses
11.20
11.20
11.20
Financial Administration
Salaries and Wages
10,299.51
10,299.51
9,271.10
1,028.41
<a
Other Expenses
4,269.50
322.49
4,591.99
2,615.12
1,976.87
0
Annual Audit
Other Expenses
30,200.00
30,200.00
30,000.00
200.00
Revenue Administration
Salaries and Wages
0.97
0.97
0.97
Other Expenses
3,799.58
225.18
4,024.76
481.33
3,543.43
Tax Assessment Administration
Other Expenses
956.02
956.02
888.35
67.67
Legal Services
Other Expenses
7,113.87
3,837.50
10,951.37
10,951.37
Liquidation
of Tax Title Liens and
ForecJosed Property
500.00
500.00
500.00
Engineering
Services
Other Expenses
15,016.96
1,804.42
16,821.38
12,087.92
4,733.46
Computer Data Services
Other Expenses
104.69
9,654.52
9,759.21
9,654.52
104.69
LAND USE ADMINISTRATION:
Planning Board
Other Expenses
5,923.06
1,695.80
7,618.86
1,695.80
5,923.06
Zoning Board of Adjustment
Salaries and Wages
1,925.00
1,925.00
1,925.00
Other Expenses
87.68
191.50
279.18
191.50
87.68
ExhibitA-ll
Page 2 of6
SCHEDULE
OF 2013 APPROPRIATION
RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC. 31. 2013
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
INSURANCE
Temporary Disability Insurance
$
2,334.76
$
$
2,334.76 $
$
2,334.76
Long-Term Disability Insurance
2,247.99
2,247.99
2,247.99
Liability Insurance
1,825.00
1,825.00
1,825.00
Employees
Group Insurance
2,640.34
2,640.34
2,640.34
PUBLIC SAFETY
Police Department
Salaries and Wages
51,630.05
3,000.00
54,630.05
24,777.96
29,852.09
Other Expenses
6,223.91
20,520.06
26,743.97
20,506.94
6,237.03
Juvenile Conference
Committee
Salaries and Wages
0.31
0.31
0.31
Other Expenses
250.00
250.00
40.00
210.00
Office of Emergency Management
'-l
Other Expenses
6,064.38
2,337.63
8,402.01
2,507.61
5,894.40
I--'
Fire Department
Other Expenses
9,172.36
21,472.26
30,644.62
21,902.26
8,742.36
Fire Hydrant Fees
Other Expenses
8.28
17,294.31
17,302.59
17,294.31
8.28
Municipal Prosecutor's
Office
Salaries and Wages
0.60
0.60
0.60
Municipal Court
Salaries and Wages
20,571.59
20,571.59
262.50
20,309.09
Other Expenses
1,098.91
414.49
1,513.40
623.24
890.16
ExhibitA-ll
Page 3 of6
SCHEDULE
OF 2013 APPROPRIATION
RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC. 31, 2013
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
PUBLIC WORKS
Road Repairs and Maintenance
Salaries and Wages
$
1,560.97 $
$
1,560.97 $
$
1,560.97
Other Expenses
7,996.07
18,655.38
26,651.45
20,046.60
6,604.85
Emergency
- Hurrican Sandy
Shade Tree Commission
Salaries and Wages
6.62
6.62
6.62
Other Expenses
280.00
18,425.00
18,705.00
18,425.00
280.00
Solid Waste Collection
Salaries and Wages
2,860.31
2,860.31
2,860.31
Garbage and Trash Removal
Salaries and Wages
7,931.04
7,931.04
7,200.81
730.23
Other Expenses
12,073.76
6,540.77
18,614.53
6,624.77
11,989.76
Community
Services Act
'l
(Condominium
Community
Costs)
N
Other Expenses
9,874.79
9,874.79
4,991.69
4,883.10
Building and Grounds
Other Expenses
3,439.31
12,022.60
15,461.91
12,219.94
3,241.97
Maintenance
of Communications
Equipment
for All Departments
Other Expenses
500.00
500.00
500.00
HEALTH AND HUMAN SERVICES
Public Health Services (Board of Health)
Salaries and Wages
4.97
4.97
4.97
Other Expenses
2,883.02
111.99
2,995.01
2,636.99
358.02
Animal Control
Other Expenses
5,666.67
21,900.00
27,566.67
26,866.67
700.00
Senior Nutrition -Program Costs
Salaries and Wages
3,704.17
3,704.17
3,704.17
Title III Senior Medical Transportation
- Program Costs
Salaries and Wages
4,722.46
4,722.46
4,722.46
Title III Information & Assistance - Program Costs
Salaries and Wages
1,327.00
1,327.00
1,327.00
ExhibitA-lI
Page 4 of6
SCHEDULE OF 2013 APPROPRIATION RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC. 31. 2013
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
PARKS AND RECREATION
Recreation Services and Programs
Salaries and Wages
$
279.11 $
$
279.11 $
$
279.11
Other Expenses
7,004.98
2,360.31
9,365.29
2,360.31
7,004.98
Parks and Playgrounds
Salaries and Wages
1,252.65
1,252.65
1,252.65
Other Expenses
842.22
5,181.32
6,023.54
5,206.53
817.01
Celebration of Public Events
Other Expenses
55.36
55.36
55.36
Senior Citizens Bus Transportation
Salaries and Wages
9,624.00
9,624.00
9,624.00
Other Expenses
1,594.26
200.00
1,794.26
200.00
1,594.26
Recreational Field Development
Other Expenses
500.00
500.00
500.00
'-..1
Senior Citizen Coordinator
CJ.)
Salaries and Wages
1,295.14
1,295.14
1,295.14
Other Expenses
2,451.98
842.65
3,294.63
842.65
2,451.98
OTHER COMMON OPERATING FUNCTIONS-
UNCLASSIFIED
Accumulated Sick Leave Compensation
Salaries and Wages
154.95
154.95
154.95
Housing and Community Advisory Board
Other Expenses
100.00
100.00
100.00
Environmental Advisory Council
Other Expenses
1,150.00
1,150.00
1,150.00
Maintenance of Tax Map
Other Expenses
5.00
995.00
1,000.00
995.00
5.00
Beautification Committee
Other Expenses
245.00
345.00
590.00
345.00
245.00
Multi-Family Solid Waste Collection
Other Expenses
53,973.00
53,973.00
28,057.38
25,915.62
ExhibitA-11
Page 5 of6
SCHEDULE
OF 2013 APPROPRIATION
RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC. 31, 2013
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
UTILITY EXPENSES
AND BULK PURCHASES
Electricity
$
49,215.62
$
11,212.94 $
60,428.56 $
15,963.53 $
44,465.03
Street Lighting
18,966.11
13,335.32
32,301.43
25,971.87
6,329.56
Telephone (Excluding
Equipment Acquis.)
19,705.04
320.06
20,025.10
4,526.34
15,498.76
Water
5,910.31
5,910.31
3,032.60
2,877.71
Gas (Natural or Propane)
4,683.02
2,919.04
7,602.06
5,974.97
1,627.09
Fuel Oil (Diesel Fuel)
14,938.72
10,000.00
24,938.72
10,000.00
14,938.72
Gasoline
10,284.27
10,000.00
20,284.27
11,493.48
8,790.79
Sewer Processing
and Disposal
Salaries and Wages
Other Expenses
8,197.50
4,270.85
12,468.35
4,270.85
8,197.50
LANDFILL!
SOLID WASTE DISPOSAL
COSTS:
~
Landfill Fees:
Other Expenses
69,279.50
16,204.22
85,483.72
50,552.65
34,931.07
CODE ENFORCEMENT
AND ADMINISTRATION:
Construction
Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
771.32
771.32
771.32
Other Expenses
2286.84
4097.86
6384.70
4279.36
2 105.34
Total Operations Within "CAPS"
544,763.69
248,703.34
793,467.03
445,657.69
347,809.34
Contingent
8000.00
8000.00
8000.00
Total Operations
Including Contingent
Within "CAPS"
552763.69
248703.34
801467.03
445657.69
355,809.34
ExhibitA-ll
Page 60f6
SCHEDULE
OF 2013 APPROPRIATION
RESERVES
BALANCE
DEC. 31, 2013
BALANCE AFTER
ENCUMBRANCES
MODIFICATION
PAID OR
CHARGED
BALANCE
LAPSED
STATUTORY EXPENDITURES:
Contribution
to:
Social Security System (O.A.S.I.)
$
4,187.01 $
$
4,187.01 $
$
4,187.01
Defined Contribution
Retirement
Program
2 120.51
2 120.51
2,120.51
Total General Appropriations
for
Municipal Purposes Within "CAPS"
559071.21
248703.34
807774.55
445657.69
362,116.86
Ogerations Excluded from "CAPS"
Piscataway
Sewerage Authority
- Share of Costs
12,296.52
12,296.52
12,296.52
Stormwater
Pollution Programs:
NJDES/Stormwater
Permit
Other Expense
3,000.00
3,000.00
3,000.00
Middlesex County Improvement
Authority
~
County Curbside Collection
Program
10457.59
9049.31
19506.90
18,098.62
1408.28
Total Operations
- Excluded from "CAPS"
25754.11
9049.31
34803.42
18098.62
16704.80
Total General Appropriations
$
584825.32
$
257752.65
$
842577.97
$
463,756.31
$
378,821.66
Ref.
A
A
A-I
Accounts Payable
A-14
$
15,540.92
Disbursed
A-4
448,215.39
$
463756.31
CURRENT FUND
SCHEDULE
OF PROPERTY TAX OVERPAYMENTS
ExhibitA-12
Total
Current
Taxes
Balance - 12/31/2013
$
23,032.99
Cash Payments - Refunds......
A- 4
23,032.99
Balance - 12/31/2014
===$======
A
-76 -
$
23,032.99
23,032.99
$
A
Exhibit A-13
CURRENT FUND
SCHEDULE OF TAXES PAYABLE
Dec. 31, 2013
Taxes
Levied
Cash
Disbursements
Dec. 31, 2014
County - General ..................................
$
$
5,183,124.66
$
(5,183,124.66)
$
County - Open Space .............................
422,848.27
(422,848.27)
County - Added & Omitted ......................
3,450.15
(3,450.15)
Local School District Taxes.....................
22,058,200.00
(22,058,200.00)
Total. ...............................................
$
$
27,667,623.08
$
(27,667,623.08)
$
Ref.
A
A-l,A-7,A-15
A-4
A
-77 -
Exhibit A-14
CURRENT FUND
SCHEDULE OF CHANGES IN VARIOUS ACCOUNTS PAYABLES & RESERVES
Transfer from/(to)
Cash
Cash
Dec. 31, 2013
Budget
Receipts
Disbursements
Adjustments
Dec. 31, 2014
Accounts Payable:
Vendor Accounts Payable .................
,
$
43,561.88
$
(1,264.50)
$
15,540.92
$
57,838.30
Marriage License Filing Fees .............
525.00
$
1,100.00
(1,600.00)
25.00
State Training Fees .........................
4,394.00
9,915.00
(9,034.00)
5,275.00
Subtotal
48,480.88
11,015.00
{1l,898.50}
15,540.92
63,138.30
Reserve for:
Third Party Outside Lien Redemption ...
34,537.33
191,293.08
(225,830.41 )
Codification of Ordinances ................
6,389.15
6,389.15
Library State Aid ...........................
,
5,974.00
2,963.00
(5,974.00)
2,963.00
FEMAlNJDEP Buyout
200,625.00
170.44
(200,625.00)
170.44
Master Plan ..................................
1,161.96
1,161.96
Tax Appeals .................................
,
30,000.00
30,000.00
'-l
Sewer Overpayment. .......................
7,530.79
7,530.79
00
Farmers Market. ............................
215.00
215.00
Hurricane Irene
129,544.61
(129,544.61)
Hurricane Sandy
22,397.34
(22,397.34)
Subtotal
438.375.18
{151,941.95}
194,426.52
{432,429.41}
48,430.34
Total. ..............................................
$
486,856.06
$
{151,941.95} $
205,441.52
$
{444,327.912 $
15,540.92
$
111,568.64
Ref.
A
A-2,A-8
A-4
A-4
A-ll
A
Exhibit - A-IS
SCHEDULE
OF LOCAL DISTRICT
SCHOOL TAX - DEFERRED
SCHOOL TAXES
REF.
Balance - December 31,2013
Deferred School Taxes
A
$
10,806,428.00
Increased by:
Levy, School Year July 1,2014 to
June 30, 2015
A-7
22,412,494.00
33,218,922.00
Decreased by:
School Taxes Requirement
-
Calendar Year Taxes Payable
A-l,A-13
22,058,200.00
Balance - December 31, 2014
A
$
1121602722.00
Deferred School Taxes
-79 -
Exhibit - A-16
SCHEDULE
OF DEFERRED
CHARGES
BALANCE
RAISED IN
BALANCE
DEC. 31,2013
CY2014
BUDGET
DEC. 31,2014
Emergency - Hurricane Irene
$
165,000.00
$
55,000.00
$
110,000.00
Emergency - Hurricane Sandy
320,000.00
80,000.00
240,000.00
$
485,000.00
$
135,000.00
$
350,000.00
Ref.
A
A-3
A
- 80-
Exhibit - A-17
SCHEDULE OF STATE GRANTS RECEIVABLE
GRANT FUND
TRANSFERRED
2014 BUDGET
FROM
BALANCE
REVENUE
COLLECTED
GRANTS
BALANCE
DEC. 31,2013
REALIZED
2014
UNAPPROPRIATED
DEC. 31,2014
Alcohol Ed & Rehab Fund - Municipal Court
$
$
52.77
$
$
52.77
$
Body Armor Replacement Grant
3,354.13
3,354.13
Clean Communities Program
24,852.04
24,852.04
Drunk Driving Enforcement Fund
3,575.92
3,575.92
Forestry Grant Match
3,000.00
3,000.00
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
3,134.00
14,381.00
13,733.00
3,782.00
Municipal Alliance on Alcoholism and Drug Abuse
3,275.28
3,275.28
00
Total Federal and State Grants Receivable
$
62409.28
$
492215.86
$
202584.20
$
282258.94
$
62782.00
.....
Ref.
A
A-18
A-18
A-20
A
SCHEDULE
OF DUE FROM CURRENT FUND
GRANT FUND
Balance - December 31,2013
A
Increased by:
Grants receivable collected
Grants appropriated
- Current Fund budget
Unappropriated
grants collected
$
20,584.20
66,570.86
32,588.70
A-I7
A-19
A-20
Decreased by:
Grants revenue - Current Fund budget
Grants expended
A-17
A-I9
49,215.86
65,956.33
Balance - December 31,2014
A
- 82-
Exhibit - A-I8
$
452,082.20
119743.76
571,825.96
115,172.19
$
456,653.77
SCHEDULE
OF RESERVE FOR STATE GRANTS - APPROPRIATED
GRANT FUND
ExhibitA-19
Page 1 of2
BALANCE
DEC. 312013
TRANSFERRED
FROM
ENCUMBERED
2014 BUDGET
PAID OR
DEC. 312013
BY BUDGET
CHARGED
ENCUMBERED
DEC. 312014
BALANCE
DEC. 31.2014
Year 2005:
N.J. Hepatitis "B" Grant
$
2,549.00
$
$
$
$
$
2,549.00
Subtotal
2 549.00
2 549.00
Year 2006:
Livable Communities
Grant
24.43
24.43
County of Middlesex - Victor Crowell Park
167,011.26
57,152.41
9,758.50
49,191.19
165,213.98
Subtotal
167035.69
57152.41
9758.50
49191.19
165238.41
Year 2008:
County of Middlesex - Mountain View Park
310.22
24,844.32
8,718.27
16,126.05
310.22
Subtotal
310.22
24844.32
8718.27
16 126.05
310.22
Year 2010:
00
Municipal Alliance Alcohol and Drug Abuse
47.40
47.40
VJ
Subtotal
47.40
47.40
Year 2011:
N.J. Clean Communities
Grant
5,607.78
5,607.78
Drunk Driving Enforcement
Fund
25,704.32
1,101.77
165.00
24,437.55
Alcohol Education & Rehab
2,385.07
2,385.07
Body Armor Replacement
Fund
7,056.28
3,143.80
3,912.48
Subtotal
40753.45
4245.57
165.00
36342.88
Year 2012:
Body Armor Replacement
Grant - CY
399.98
399.98
Drunk Driving Enforcement
Fund
1,166.14
1,166.14
Haz-Mat Grant
136.44
136.44
Middlesex County - Mountainview
Park
129,726.51
129,726.51
N.J. Alcohol Education & Rehabilitation
- Municipal Court
161.80
161.80
N.J. Clean Communities
Grant
10,534.18
750.00
11,284.18
Older Americans Act - Information Assist
82.29
197.00
279.29
Subtotal
142207.34
947.00
143 154.34
SCHEDULE OF RESERVE FOR STATE GRANTS - APPROPRIATED
GRANT FUND
ExhibitA-19
Page 2 of2
BALANCE
DEC. 31 2013
TRANSFERRED
FROM
ENCUMBERED
2014 BUDGET
PAID OR
DEC. 312013
BY BUDGET
CHARGED
ENCUMBERED
BALANCE
DEC. 31.2014
DEC. 31 2014
Year 2013:
Body Armor Replacement
Grant - CY
3,258.58
1,571.90
1,686.68
Drunk Driving Enforcement
Fund
4,699.42
4,699.42
Municipal Alliance on Alcohol & Drug Abuse
6,573.75
6,573.75
N.J. Alcohol Education & Rehabilitation
- Municipal Court
53.96
53.96
Subtotal
8011.96
6573.75
8145.65
6440.06
Year 2014:
Body Armor Replacement
Grant - CY
3,354.13
1,525.20
1,828.93
Drunk Driving Enforcement
Fund
3,575.92
3,575.92
Municipal Alliance on Alcohol & Drug Abuse
17,355.00
17,355.00
N.J. Alcohol Education & Rehabilitation
- Municipal Court
52.77
52.77
Forestry Grant Match
3,000.00
3,000.00
N.J. Clean Communities
Grant
24,852.04
1,827.14
23,024.90
Older Americans Act - Information Assist
14,381.00
14,381.00
o:
~
Subtotal
66570.86
35088.34
31,482.52
Total Federal and State Grants
$
360915.06
$
89517.48
$
66570.86
$
65956.33
$
65482.24
$
385564.83
Ref.
A
A
A-18
A-18
A
A
Exhibit - A-20
SCHEDULE
OF RESERVE FOR STATE GRANTS - UNAPPROPRIATED
GRANT FUND
INCREASED
REALIZED
BALANCE
BY GRANTS
AS
BALANCE
DEC. 31,2013
RECEIVED
REVENUE
DEC. 31,2014
Body Armor Replacement
Grant
$
6,929.13
$
3,354.13
$
3,575.00
Clean Communities
Program
24,852.04
$
23,307.48
24,852.04
23,307.48
Drunk Driving Enforcement
Fund
3,187.57
3,187.57
Municipal Alliance on Alcoholism
and Drug Abuse
6,093.65
6,093.65
Alcohol Education Rehabilitation
Fund
52.77
52.77
$
312833.94
$
322588.70
$
282258.94
$
36:163.70
I
00
Ref.
A
A-18
A-17
A
c.n
Exhibit - A-21
SCHEDULE
OF DUE FROM GENERAL CAPITAL FUND - GRANT FUND
Balance - December 31,2013
A
$
23,775.00
Balance - December 31, 2014
A
$
23,775.00
TRUST FUND
- 86-
ANALYSIS
OF TRUST ASSESSMENT CASH AND INVESTMENTS
RECEIPTS
BALANCE
ASSESSMENTS
BALANCE
DEC. 31, 2013
AND LIENS
DEC. 31, 2014
Fund Balance
$
5,565.77
$
$
5,565.77
Assessments Receivable
(1,470.00)
(1,470.00)
Due to Current Fund
13,498.51
186.37
13,684.88
Due to General Capital Fund
7164.08
7164.08
$
24,758.36
$
186.37
$
24944.73
Ref.
B
B-5
B
( ) Denotes Deficit or Deduction
SCHEDULE OF ASSESSMENT LIENS
TRUST ASSESSMENT FUND
ORD
NO.
IMPROVEMENT
DESCRIPTION
BALANCE
DEC. 31. 2013
BALANCE
PLEDGED TO
GENERAL CAPITAL
BALANCE
DEC. 31. 2014
1106
Curbs and Gutters
$
$
$
1,470.00
1470.00
1,470.00
B
B
Exhibit - B- 2
Exhibit - B-3
Exhibit - B-4
SCHEDULE
OF DUE TO GENERAL CAPITAL FUND
ASSESSMENT
TRUST FUND
Balance - December 31, 2013
B
$
7,164.08
Balance - December 31,2014
B
$ ===7::1:::,1=64::::.=08=
Exhibit - B-5
SCHEDULE
OF DUE TO CURRENT FUND
ASSESSMENT
TRUST FUND
REF.
Balance - December 31, 2013
B
$
13,498.51
Increased by
Cash Receipts
B-2
186.37
Balance - December 31,2014
B
$
13,684.88
- 88-
Exhibit B-6
TRUST FUNDS
Page 1 of2
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
..............
Cash ..
Balance
Dec. 31. 2013
Receipts
Disbursements
Adjustments
Dec. 31. 2014
Assessment
Trust:
Assessments
Liens Receivable ..
$
(1,470.00)
$
(1,470.00)
Due to General Capital Fund ...
7,164.08
7,164.08
Due to Current Fund ...
13,498.51
186.37
13,684.88
Fund Balance ..
5,565.77
5,565.77
Total
24,758.36
186.37
24,944.73
Animal Control:
Due Current Fund ...
5,527.28
5,527.28
Due To NJ - State License Fees ..
(0.60)
1,117.80
(1,122.60)
(540)
Animal Control Reserves ...
15,745.08
8,541.20
(775.55)
(5,527.28)
17,983.45
Total
15,74448
9,659.00
(1,898.15)
23,505.33
Payroll:
Deductions Payable (Net Change) ..
111,238.89
72,184.25
183,423.14
Total
111,238.89
72,184.25
183,423.14
Developers'
Escrow:
Developer's
Escrow Funds ...
450,845.24
86,452.52
(215,199.86)
322,097.90
Developer's
Escrows
- Water & Soil ..
18,937.00
525.00
19,462.00
Total
469,782.24
86,977.52
(215,199.86)
341,559.90
Public Assistance:
Reserve for Public Assistance ..
9,913.42
74.32
(74.12)
9,913.62
Total
9,91342
74.32
(74.12)
9,913.62
Community Development Blk Grant:
Due from Midd. Cty. CDBG ..
(89,575.80)
51,337.00
(52,819.00)
(91,057.80)
Community Development Blk Grant
Year 2006/2007 Reserves
Daisy Park..;
428.20
428.20
Community Development Blk Grant:
Year 2008/2009 Reserves
Senior Center Improvements
1,924.60
(1,924.60)
Community Development Blk Grant:
Year 2011/2012 Reserves
Cook Avenue Repaving
15,295.00
15,295.00
Community Development Blk Grant
Year 2012/2013 Reserves
Senior Center Improvements
9,320.00
(5,850.00)
1,924.60
5,394.60
Manhole Retrofit
5,851.00
(5,712.00)
139.00
Community Development Blk Grant:
Year 2013/2014 Reserves
Senior Center Improvements
..
10,800.00
10,800.00
Senior Nutrition ..
7,500.00
(7,500.00)
Senior Van Driver ..
7,500.00
(7,500.00)
Code Enforcement..
7,500.00
(7,500.00)
Senior Center Coordinator ...
11,075.00
(11,075.00)
Lincoln Fire House Doors ..
7,000.00
(6,200.00)
800.00
Rescue Squad Generator ..
2,386.00
2,386.00
Passive Improvements ..
2,996.00
2,996.00
Community Development Blk Grant:
Year 2014/2015 Reserves
Lincoln Park Improvements ...
13,640.00
13,640.00
Senior Nutrition Project..
7,550.00
7,550.00
Senior Van Driver ...
7,500.00
7,500.00
Code Enforcement ...
7,500.00
7,500.00
Senior Center Coordinator ..
11,075.00
11,075.00
Daisy Park Improvements ..
5,554.00
5,554.00
Total
51,337.00
(51,337.00)
- 89-
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Exhibit B-6
Page 2 of2
Balance
Dec. 31. 2013
Disbursements
Adjustments
Balance
Dec. 31. 2014
...... Cash ..
Receipts
Other Trust Funds:
Due to Current Fund.
Due from General Capital Fund ..
Reserve for Unemployment
Insurance ..
Miscellaneous
Reserves:
Commodity Resale Program -
Gasoline - Borough of Dunellen ..
Drug Alliance Donation
Federal Asset Forfeitures
Municipal Law Enforcement
Trust ...
Older Americans Act..
Outside Police Services ..
Police Found Money ..
Parking Offense Adjudication Act..
Police Application Fees ..
Public Defender Fees ..
Police Communities
Education ...
Premium on Tax Sale ..
Police Memorial
Fund ..
Police Donations ..
Police - DARE ..
Police 911 Fund ..
Recreation
Fund ..
Recycling Trust
Restitution
Sanitary Sewer
Senior Assisted
Transportation ..
Special Inspection
Street Opening Deposits ..
Tree Replacement
Fund
UFC Dedicated Penalties ..
Uniform Fire Safety Penalties ..
IOOthAnniversary
$
(258,157.99)
234,136.58
4,401.71
(24,355.67)
27,250.37
115,145.21
(105,834.58)
1,750.00
(1,000.00)
5,034.07
37.91
8,743.87
65.81
5,069.07
6,826.00
(5,205.43)
8,009.39
150,483.70
(147,942.06)
161.66
2,872.50
136.00
318.85
6,045.00
8,426.50
(7,300.00)
1,817.40
130,900.00
(26,300.00)
50.00
3,906.41
(971.00)
1,635.00
19.84
67,932.58
94,648.92
(89,092.55)
164,329.45
68,801.73
(I 13,484.31)
3,756.56
129.00
2,500.00
(1,120.00)
734.81
859.00
(397.87)
3,847.28
360.24
(360.24)
63,691.05
24,150.00
(8,050.00)
7,025.00
2,000.00
53.86
12,405.53
5,066.85
(1,521.08)
377,504.99
609,871.73
(532,934.79)
$ 1,008,942.38
$
830,290. I9
(801,443.92)
$
B
Total
Total
License Fees Collected:
2012
2013
$ 9,162.20
8821.25
$ 17983.45
Note' R.S. 4: 19.II
there shall be transferred from such special account to the general
funds of the municipality
any amount then in such special account which
is in excess of the total amount paid into such special account during the
last two fiscal years next preceding.
It
- 90-
$
(258,157.99)
214,182.62
36,561.00
750.00
5,071.98
8,809.68
6,689.64
10,551.03
161.66
3,008.50
318.85
7,171.50
1,817.40
104,600.00
50.00
2,935.41
1,635.00
19.84
73,488.95
119,646.87
3,885.56
1,380.00
1,195.94
3,847.28
79,791.05
9,025.00
53.86
12,405.53
3,545.77
454,441.93
$
I,037,788.65
B
GENERAL CAPITAL FUND
- 91-
Exhibit - C-2
SCHEDULE
OF GENERAL CAPITAL FUND
CASH AND INVESTMENTS
- TREASURER
REF.
Balance - December 31, 2013
C
$
1,771,547.47
Increased by Receipts:
Grants, Loans and Other Receivables
C-4
3,023,891.54
Various Reserves
C-13
50,728.86
Capital Improvement
Fund
C-14
65,000.00
Bond Anticipation
Notes
C-16
2,878,258.00
6017878.40
7,789,425.87
Decreased by Disbursements:
Improvement
Authorizations
C-8
6,032,575.65
Balance - December 31, 2014
C,C-3
$
1,756,850.22
- 92-
Exhibit - C- 3
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND INVESTMENTS
BALANCE
BALANCE
DECEMBER
DECEMBER
31 2013
31 2014
Grants Receivable
$
(949,777.55)
$
(1,301,219.12)
Due from Assessment
Trust
(7,164.08)
(7,164.08)
Due to Grant Fund
23,775.00
23,775.00
Due to Trust Fund
258,157.99
258,157.99
Improvement
Authorizations
Funded
1,335,580.60
1,550,331.19
Improvement
Authorizations
Expended
(2,320,684.49)
(274,420.04)
Unexpended
Proceeds of BAN's Issued
615,819.34
Reserve for Encumbrances
3,319,673.58
665,454.66
Reserve for:
Capital Improvement
Fund
94,559.58
157,959.58
Insurance Refund
4,838.08
4,838.08
To Pay Debt Service
12,588.76
63317.62
$
1 771 547.47
$
1,756,850.22
Ref.
C-2
C-2
- 93-
Exhibit - C-4
SCHEDULE OF VARIOUS GRANTS, LOANS AND OTHER RECEIVABLES
Ordinance
Balance
Balance
Number
December 31,2013
Increases
Decreases
December 31,2014
Receivables:
Federal Highway - 1999 Rec Trails Mountainview
Greenways Nature Preserve
1479-99
$
866.25
$
866.25
State ofNJ DOT - Municipal Road Program - Warrenville Rd.
1528-01
55,787.75
55,787.75
Middlesex County - Rt. 28 Streetscapes
1582-03
4,840.00
4,840.00
New Jersey Environmental Infrastructure Trust
1611-04
404,561.00
404,561.00
State ofNJ DOT
1643-05
75,489.56
75,489.56
Federal Homeland Security
1643-05
24,000.00
24,000.00
Middlesex County
1643-05
35,966.00
35,966.00
Recycling Trust
1676-05
2,350.00
2,350.00
State ofNJ DCA - Livable Communities
1688-06
130.00
130.00
Federal Homeland Security
1688-06
8,805.00
8,805.00
State ofNJ DOT - Beechwood Ave.
1715-07
69,476.44
69,476.44
\0
State ofNJ DOT - Greenbrook Rd
1736-08
56,250.00
56,250.00
fl::..
State ofNJ DOT - Beechwood Ave.
1772-10
16,361.77
16,361.77
State ofNJ DOT - Parker Street
1797-11
15,238.34
15,238.34
State ofNJ OEM
1808-12
635,000.00
494,750.00
140,250.00
Federal Emergency Management Agency (FEMA)
1808-12
1,905,000.00
1,692,258.11
212,741.89
State ofNJ DOT - Howard Avenue
1818-12
75,000.00
73,558.43
1,441.57
State ofNJ DOT - Fairview Avenue
1842-13
300,000.00
300,000.00
Various Capital Improvements (MCIA)
1855-14
888,325.00
763,325.00
125,000.00
State ofNJ DOT -Marlborough Avenue
1857-14
300000.00
300000.00
$
3,685,122.11
$
1,188,325.00
$
3,023,891.54
$
1,849,555.57
Ref.
C
C-8
C-2
C
ExhibitC-5
SCHEDULE
OF DEFERRED
CHARGES
TO FUTURE
TAXATION
- FUNDED
SCHEDULE
OF DEFERRED
CHARGES
TO FUTURE
TAXATION
- UNFUNDED
Exhibit
- C-6
ANALYSIS
OF BALANCE
- DECEMBER
31, 2014
UNEXPENDED
BOND
BALANCE
OF
ORD.
BALANCE
2014
2014
BALANCE
ANTICIPATION
IMPROV.
NO.
IMPROVEMENT
DESCRIPTION
DEC. 31 2013
AUTHOR
FUNDING
DEC. 31,2014
NOTES
EXPENDED
AUTHOR.
General
Improvements
1503-00
Purchase
and/or
Installation
of Equip.
for
Various
Departments
$
136.00
$
$
$
136.00
$
136.00
$
$
1513-00
Purchase
of Senior Citizens
Bus
0.08
0.08
0.08
1544-01
Improv.
to Various Buildings
& Facilities
9,253.38
9,253.38
9,253.00
0.38
1548-01
Reconstr.
Of Roads Including
Drainage
21,123.19
21,123.19
21,123.00
0.19
1562-02
Various Capital
Improvements
8,691.75
8,691.75
8,691.00
0.75
1571-02
Constr.
of Bikeway
- Fitzsimmons
Park to
Mountainview
Park
37,085.00
37,085.00
37,085.00
1599-04
Installation
of New Sidewalks,
Croosswalks,
Pedestrian
Signs at various
locations.
3,157.25
3,157.25
3,157.00
0.25
1605-04
Various Capital
Improvements
985.00
985.00
985.00
1609-04
Resurfacing
of South Ave.
125,151.31
125,151.31
125,151.00
0.31
1626-04
911 Equipment
2,592.00
2,592.00
2,592.00
1643-05
Various Capital
Improvements
(NJ DOT $200,000),
(NJ DCA $95,000)
(Assistance
to Firefighters
$136,444)
(Federal
Homeland
Security
$24,000)
(Middlesex
County
$97,556)
127,256.00
127,256.00
127,256.00
\0
1646-05
Amended/Streetscape
Improvement
Rt 28
30,400.00
30,400.00
30,400.00
Q'\
1676-05
Rack Body Truck
1,261.55
1,261.55
1,261.00
0.55
1687-06
Various Capital
Improvements
107,838.96
107,838.96
107,838.00
0.96
1708-07
Acquisition
of Street Sweeper
3,349.30
3,349.30
3,349.00
0.30
1772-10
Various
Capital
Improvements
273,030.00
273,030.00
273,030.00
1797-11
Various
Capital
Improvements
1,248,566.00
1,248,566.00
1,248,566.00
1808-12
Acq and Demolition
of Certain
Flood Prone
Properties
2,540,000.00
2,187,008.11
352,991.89
274,417.89
78,574.00
1818-12
Various Capital
Improvements
779,125.00
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview
Avenue
76,000.00
76,000.00
76,000.00
1857-14
Improvements
to Marlborough
Ave
30,400.00
30,400.00
30,400.00
Local
Improvements
1403-97
Constr.
of Curbs & Gutters
- Cedar,
Hooker,
etc.
2,180.42
2,180.42
2,180.00
0.42
1411-97
Constr.
of Curbs & Gutters
- Emerson
& June Way
11,192.23
11,192.23
11,192.00
0.23
1435-98
Constr.
of Curbs & Gutters
- Ashland
Ave.
9888.56
9888.56
9888.00
0.56
$
5,418262.98
$
30400.00
$
2187008.11
$
3261654.87
$
2,878,258.00
$
274420.04
$
108976.83
Ref.
C
C-8
C-13
C
Unexpended
Balances
of Unfunded
Improv. Authors.
C-8
$
724,796.17
Less: Unexpended
Proceeds
of Bond Anticipation
Notes
C-3
615 819.34
$
108976.83
Exhibit - C - 7
SCHEDULE OF INTERFUNDS
GENERAL CAPITAL FUND
ASSESSMENT
TRUST-
GRANT
Ref.
TOTAL
TRUST
OTHER
FUND
Balance - December 31,2013
Due From
C
$
7,164.08
$
7,164.08
$
$
Due To
C
281,932.99
258,157.99
23,775.00
Balance - December 31, 2014
Due From
C
7,164.08
7,164.08
Due To
C
$
2812932.99
$
$
2582157.99
$
232775.00
\0
'-1,
SCHEDULE
OF IMPROVEMENT
AUTHORIZATIONS
ExhibitC-8
2014AUTHORlZATIONS
RESERVE FOR
RESERVE
FOR
ORD.
ORDINANCE
BALANCE-DEC.
31 2013
CAP.IMPROV.
DEFERRED-
ENCUMBR.
PAID OR
ENCUMBR.
BALANCE
- DEC. 31 2014
!ill.
IMPRQVllMENT
DllSCBJPTION
DATE
AMQl.lliI
:E!.lli.lllill
l.llill.l!'!lli
B..!l'!Q
l.llill.l!'!lli
QTHER
lW..!LU
CHARGED
lUl..!ill
~
l.llill.l!'!lli
General Improvements-
1410-97
Various Improvements
09123/97
200,000.00
916.82
95.13
1,011.95
1472-99
Reconstruction
of Roads,
Incl. Drainage
(N)DOT
$120,018.75)
05122199
289,000.00
2,531.00
2,531.00
1473-99
Construction
of a Park, Incl. Tables, on
Borough Owned Property Located at Block 224, Lot 29
06122199
36,000.00
3,220.75
3,220.75
1474-99
Rehabilitation,
Reconstruction
& Improv.
to Victor Crowell
Park
07/13/99
1,055,200.00
6,017.45
4,455.00
1,562.45
1476-99
Environmental
Remedial
Investigation
of
Borough's
Former Landfill
Site
10126/99
1,335,570.00
42,710.55
9,971.17
38,121.00
6,567.52
7,993.20
1480-99
Improv. to Recreational
Facilities
at
Mountainview
Park (NJ GreenAcres
$209,000)
11/09/99
357,705.00
1,892.25
1,892.25
1484-99
Reconstr. of Roads & Drainage (N] DOT $150,000)
12128/99
322,964.00
2,831.71
2,831.71
1492-00
Improv. to Various
Bldgs. & Facilities
02122/00
168,000.00
2,119.31
2,119.31
1493-00
Reconstr.
of Roads,
Incl. Drainage
Where Required
03/14/00
314,163.00
4,995.20
4,849.85
145.35
0.00
1503-00
Purchase
andlor Installation
of Equip. for
Various
Departments
09/12100
209,600.00
4,565.32
136.00
4,565.32
136.00
1513-00
Purchase
of a Senior Citizen
Bus
12/19/00
109,600.00
4,332.91
0.08
4,332.91
0.08
1524-01
Constr. Bridge
- East Side of Victor Crowell
Park
05108/01
103,000.00
8,157.71
8,157.71
1525-01
Reconstr.
of Roads Including
Drainage
05129/01
114,000.00
2,458.95
1,845.90
613.05
1544-01
Improv. to Various Buildings
& Facilities
11120/01
125,000.00
5,147.%
5,147.96
1545-01
Rehab.,
Reconstr.
And Improvs.
to
Victor
Crowell
Park
11120/01
250,000.00
5,895.72
5,895.72
1548-01
Reconstr.
Of Roads
Including
Drainage
(N) DOT $250,000)
12/11/01
575,535.00
6,883.12
6,883.12
1562-02
Various
Capital
Improvements
06/11102
466,000.00
1,379.17
1,379.17
1571-02
Constr. of Bikeway
• Fitzsimmons
Park to Mountainview
Park (N) DOT Discr; Bike Progr. $50,000)
10122102
164,300.00
15,621.39
15,621.39
1582-03
Various
Capital
Improvements
(NJ DOT $300,000)
\0
(Downtown
& Bus Improv Dist $82,120)
05/27/03
1,085,000.00
19,078.17
5,550.24
13,527.93
00
1590-03
Preliminary
Planing
Sanitary
Sewer
Improv
Project
and Videotaping
Inspection
173,000.00
14,885.27
14,885.27
1599-04
Installation
of New Sidewalks,
Croosswalks,
Pedestrian
Signs
at various
locations.
03/05104
307,000.00
11,114.87
3,157.25
11,114.87
3,157.25
1600-04
Improv. to Soccer
Fields
03/05/04
272,000.00
%0.22
960.22
1605-04
Various Capital Improvements
03/19/04
446,300.00
20,084.41
985.00
20,084.41
985.00
1609-04
Resurfacing
of South Ave. (NIDOT
$225,000)
05121/04
456,000.00
115,230.57
17,780.67
97,449.90
1611-04
Improvement
to the Sanitary
Sewer
System
(Infrastructure
Trust $1,689,655)
07/13/04
1,627,000.00
234,047.80
237,610.52
264,518.86
34,170.99
172,968.47
1623-04
Streetscape
Improvements
on Rt28
10/23/04
152,000.00
3,029.49
3,029.49
1626-04
911 Equipment
01/07/05
23,000.00
2,163.53
2,163.53
1643-05
Various
Capital
Improvements
(N) DOT $200,000)
(N) DCA $95,000)
(Assistance
to Firefighters $136,444)
(Federal
Homeland
Security $24,000)
(Middlesex
County $97,556)
05/10105
1,305,100.00
7,968.66
127,256.00
7,968.66
127,256.00
1646-05
AmendedlSrreetscape
Improvement
Rt 28
05/10/05
32,000.00
1,600.00
30,400.00
1,600.00
30,400.00
1676-05
Rack Body Truck
12113/05
47,350.00
141.01
141.01
1686-06
Police
Building
4,500,000.00
36,562.30
(2,507.16)
34,055.14
1687-06
Various Capital Improvements
(NJDOT - $200,000)
10120106
1,358,900.00
29,805.36
36.77
29,842.13
1688-06
Various Equipment
(Assistance
to Firefighters
$157,854)
(Statewide
Livable
Communities
SI5,000)
04/11/06
182,162.00
1.555,48
1,555.48
1708-07
Acquisition
of Street Sweeper
02113/07
167,955.00
1,108.23
1,108.23
1715-07
Various Capital
Improvements
(NJDOT
$240,000)
05108/07
474,700.00
20.004.65
20,004.65
1718-07
Police
Building
08128/07
500,000.00
3,795.72
3,040.97
6,836.69
1736-08
Various
Capital
Improvements
(N) DOT - $225,000),
(Pedestrian
Bike - $80,000)
06/10/08
892,200.00
38,065.71
43,280.71
65,091.41
10,819.77
5,435.24
1742-08
Fire Truck
09/09/08
550,000.00
4,498.82
120.00
4,378.82
1772-10
Various
Capital Improvements
07127/10
912,400.00
119,207.90
24,142.51
23,395.18
747.33
119,207.90
1797-11
Various
Capital
Improvements
1,614,280.00
132,777.69
577,663.52
639,990.06
6,010.00
64,441.15
1808-12
Acq and Demolition
of Certain Flood Prone Properties
03127/12
2,540,000.00
2,351,885.00
73,484.03
2,297,420.27
49,374.76
78,574.00
1818-12
Various Capital
Improvements
08128/12
1,116,450.00
78,293.23
81,941.78
96,851.79
907.56
62,475.66
1832-13
Various Capital
Improvements
(MCIA)
07126113
3,081,700.00
748,998.47
2,065,118.54
2, I04,236.97
172,707.82
537,172.22
1842-13
Reconstruction
of Fairview
Ave
08127113
380,000.00
76,684.91
76,000.00
205,795.09
281,478.64
20,712.38
56,288.98
1855-14
Various Capital
Improvements
(MCIA)
09/09/14
888,325.00
888,325.00
170,108.69
332,802.30
385,414.01
1857-14
Improvements
to Marlborough
Ave
09/09/14
332,000.00
1.600.00
30400.00
300.000.00
14370.00
17630.00
269600.00
30.400.00
1.335,280.60
3.097578.49
1.600.00
30400.00
$1 188.325.00
3.319,673.58
6,032,575.65
665454.66
1,550.331.19
7247%.17
M
C
C
C-14
C-6
C-2,C-4
C
C-2
C
C
C
SCHEDULE
OF GENERAL
SERIAL BONDS
Exhibit - C-9
MATURITIES
OF BONDS
DATE OF
ORIGINAL
OUTSTANDING
- DEC. 31,2014
INTEREST
BALANCE
BALANCE
ISSUE
ISSUE
ISSUE
DATE
AMOUNT
RATE
DEC. 31, 2013
DECREASE
DEC. 31, 2014
General Improvement
Bonds of2004
09/01104
$
2,552,000.00
$
317,000.00
$
317,000.00
$
General Improvement
Bonds of 20 10
02/15/10
9,865,000.00
02/15/15
$
675,000.00
3.000%
8,590,000.00
475,000,00
8,115,000.00
02/15/16
675,000.00
3.000%
02/15/17
700,000.00
3.000%
02/15/18
700,000.00
3.000%
02115/19
700,000.00
3.000%
02/15/20
700,000.00
3.200%
02/15/21
775,000.00
3.375%
02/15/22
800,000.00
3.500%
02/15/23
800,000.00
3.500%
02/15/24
800,000.00
3.625%
02/15/25
790,000.00
4.000%
$
8,907,000.00
$
792,000.00
$
8,115,000.00
<c-o
Ref.
C
C-5
C
SCHEDULE
OF CAPITAL LEASES
PAYABLE
Exhibit - C-I0
MIDDLESEX
COUNTY
IMPROVEMENT
AUTHORITY
AMOUNT
OF
FEES
INTEREST
MATURITIES
OF LEASES
BALANCE
BALANCE
PROJECT
DESCRIPTION
LOAN
PAYABLE
RATE
DATE
AMOUNT
DEC. 31,2013
INCREASED
DECREASED
DEC. 31,2014
Capital Equipment
- 2008
$
572,745.83
$
14,522.02
3.550%
09/15/15
$
60,090.64
$
311,686.83
$
57,997.72
$
253,689.11
3.750%
09/15/16
62,259.09
4.000%
09/15/17
64,505.80
4.200%
09/15/18
66,833.58
Capital Equipment
- 2013
2,900,567.38
56,064.13
3.000%
08/15/15
360,034.60
2,900,567.38
360,260.22
2,540,307.16
3.000%
08115/16
371,735.66
4.000%
08115/17
381,537.69
4.000%
08115/18
396,999.21
4.000%
08115/19
190,000.00
4.000%
08/15/20
200,000.00
4.000%
08/15/21
205,000.00
4.000%
08/15/22
215,000.00
4.000%
08/15/23
220,000.00
.....
Capital Equipment
- 2014 (Lease)
120,994.00
910.59
1.500%
09/15/15
23,302.14
$
120,994.00
120,994.00
0
2.000%
09/15/16
23,524.80
0
3.000%
09/15/17
23,995.30
3.000%
09/15/18
24,715.15
3.000%
09/15/19
25,456.61
Capital Equipment
- 2014 (Loan)
738,861.92
5,560.58
1.500%
09115/15
142,296.86
738,861.92
738,861.92
2.000%
09/15/16
143,656.53
3.000%
09/15/17
146,529.66
3.000%
09/15/18
150,925.55
3.000%
09/15/19
155,453.32
$
3,212,254.21
$
859855.92
$
418257.94
$
3,653,852.19
Ref.
C
C-5
C-5
C
32
33
34
35
36
Exhibit - C-ll
SCHEDULE
OF LOANS PAYABLE
NEW JERSEY
1987 GREEN TRUST FUND
BALANCE-
DATE OF
INTEREST
PRINCIPAL
LOANS
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$
52,874.70
June 2,2015
$
528.75
$
10,365.55
42,509.15
Dec. 2, 2015
425.09
10,469.20
32,039.95
June 2,2016
320.40
10,573.89
21,466.06
Dec. 2, 2016
214.66
10,679.63
10,786.43
June 2,2017
107.86
10786.43
$
1 596.76
$
522874.70
PAYMENT
NUMBER
Total Balance Due -
Principal and Interest
Payments
Made in 2014
30
31
June 2, 2014
$
Dec. 2, 2014
732.99
$
631.38
10,161.30
102262.92
$
1 364.37
=$======2=0~A=24=.2=2=
REF.
C-5
Details as to Loan Repayments:
A. Payments
made payable to:
B. Payments
to be mailed to:
Treasurer, State of New Jersey, 1987 Green Trust Fund
New Jersey Department
of Environmental
Protection
Division of Financial
Management
and General Services
Office of Trust Fund Management
Post Office Box 420
Trenton, New Jersey 08625
C. Original Amount of Loan = $328,000.00
-101-
Exhibit - C-12
SCHEDULE OF LOANS PAYABLE
NEW JERSEY GREEN TRUST FUND - 1989
BALANCE-
PAYMENT
DATE OF
INTEREST
PRINCIPAL
LOANS
NUMBER
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$
101,125.75
23
January 15,2015
$
1,011.26
$
5,486.89
95,638.86
24
July 15,2015
956.39
5,541.75
90,097.11
25
January 15,2016
900.97
5,597.17
84,499.94
26
July 15,2016
845.00
5,653.14
78,846.80
27
January 15,2017
788.47
5,709.68
73,l37.12
28
July 15,2017
731.37
5,766.77
67,370.35
29
January 15,2018
673.70
5,824.44
61,545.91
30
July 15,2018
615.46
5,882.68
55,663.23
31
January 15,2019
556.63
5,941.51
49,721.72
32
July 15,2019
497.22
6,000.93
43,720.79
33
January 15,2020
437.21
6,060.94
37,659.85
34
July 15, 2020
376.60
6,121.55
31,538.30
35
January 15,2021
315.38
6,182.76
25,355.54
36
July 15,2021
253.56
6,244.59
19,110.95
37
January 15,2022
191.11
6,307.03
12,803.92
38
July 15,2022
128.04
6,370.10
6,433.82
39
January 15,2023
64.30
6,433.82
0.00
Total Balance Due -
Principal and Interest
$
9342.67
$
101,125.75
Payments Made
Made in 2014
21
January 15,2014
$
1,119.37
$
5,378.77
22
July 15,2014
1065.58
5432.56
$
2 184.95
$
10811.33
REF.
C-5
Details as to Loan Repaxments:
A. Payments made payable to:
Treasurer, State of New Jersey, 1989 Green Trust Fund
B. Payments to be mailed to:
New Jersey Department of Environmental Protection
Division of Financial Management and General Services
Office of Trust Fund Management
Post Office Box 420
Trenton, New Jersey 08625
C. Original Amount of Loan = $209,000.00
-102 -
Exhibit - C-l3
SCHEDULEOFVAJUOUSRESERVES
Ordinance
Balance
Balance
Number
December 31, 2013
Increases
Decreases
December 31,2014
Reserve for:
Cash or Appropriated
Reserves:
Insurance Refund - Landfill (Payment of Bonds)
$
4,838.08
$
4,838.08
Payment of Debt Service
12588.76
50,728.86
63317.62
Subtotal
17426.84
50,728.86
68 155.70
Grants, Loans & Other Receivables:
Federal Highway - 1999 Rec Trails Mountainview
Greenways Nature Preserve
1479-99
866.25
866.25
State ofNJ DOT - Municipal Road Program - Warrenville Rd.
1528-01
55,787.75
55,787.75
Middlesex
County - Rt. 28 Streetscapes
1582-03
4,840.00
4,840.00
New Jersey Environmental
Infrastructure
Trust
1611-04
58,305.00
58,305.00
State ofNJ DOT - Cedar Ave.
1643-05
75,489.56
75,489.56
I-'
Middlesex
County - Cedar Ave.
1643-05
56.00
56.00
0
CJ.)
State ofNJ OEM
1808-12
635,000.00
494,750.00
140,250.00
Federal Emergency Management
Agency (FEMA)
1808-12
1,905,000.00
1,692,258.11
212,741.89
Subtotal
2,735,344.56
2,187,008.11
548336.45
$
2,752,771.40
$
50,728.86
$
2,187,008.11
$
616,492.15
Ref.
C
C-2
C-6
C
Exhibit - C-14
SCHEDULE
OF RESERVE FOR
CAPITAL IMPROVEMENT
FUND
Balance - December 31, 2013
C
$
94,559.58
Increased by:
Budget Appropriation
C-2
65000.00
159,559.58
Decreased by:
Appropriated
to Finance Improvement
Authorizations
C-8
1 600.00
Balance - December 31, 2014
C
$
157,959.58
-104 -
Exhibit - C-15
SCHEDULE
OF LOANS PAYABLE
NJ ENVIRONMENTAL
INFRASTURCTURE
TRUST LOAN AND FUND LOAN PAYABLE
NET
NET
BALANCE-
PRINCIPAL
BALANCE-
PAYMENT
DATE OF
PRINCIPAL
INTEREST
SAVINGS
SAVINGS
TOTAL
TRUST LOAN
DATE OF
PAYMENTS
FUND LOAN
NUMBER
COUPON
PAYMENT
PAYMENTS
PAYMENTS
PRINCIPAL
INTEREST
PAYMENTS
PAYABLE
PAYMENT
ONLY
PAYABLE
NJ Infrastructure
Trust Loan:
NJ Infrastructure
Fund Loan:
$
535,000.00
$
443,406.32
20
02/01/15
$
12,478.13
$
1,913.95
$
10,564.18
535,000.00
02/01/15
$
8,104.41
435,301.91
21
4.000%
08/01115
$
45,000.00
12,478.13
1,913.72
55,564.41
490,000.00
08/01115
37,331.45
397,970.46
22
02/01116
11,578.13
1,913.49
9,664.64
490,000.00
02/01116
7,519.87
390,450.59
23
4.000%
08/01116
45,000.00
11,578.13
1,913.26
54,664.87
445,000.00
08/01116
36,746.91
353,703.68
24
02/01117
10,678.13
1,913.04
8,765.09
445,000.00
02/01117
6,935.33
346,768.35
25
5.000%
08/01117
45,000.00
10,678.13
11,220.35
1,904.91
42,552.87
400,000.00
08/01117
36,162.37
310,605.98
26
02/01118
9,553.13
1,632.30
7,920.83
400,000.00
02/01118
6,204.66
304,401.32
27
5.000%
08/01118
50,000.00
9,553.13
11,815.37
1,636.18
46,101.58
350,000.00
08/01118
38,679.14
265,722.18
28
02/01119
8,303.13
1,336.46
6,966.67
350,000.00
02/01119
5,392.79
260,329.39
29
5.000%
08/01119
50,000.00
8,303.13
12,345.52
1,331.48
44,626.13
300,000.00
08/01119
37,867.28
222,462.11
30
02/01120
7,053.13
1,027.67
6,025.46
300,000.00
02/01120
4,580.93
217,881.18
31
5.000%
08/01120
55,000.00
7,053.13
13,041.88
1,029.49
47,981.76
245,000.00
08/01120
40,302.57
177,578.61
32
02/01121
5,678.13
701.36
4,976.77
245,000.00
02/01121
3,687.88
173,890.73
,
33
5.000%
08/01121
55,000.00
5,678.13
13,659.36
698.25
46,320.52
190,000.00
08/01121
39,409.82
134,480.91
"""'
34
02/01/22
4,303.13
359.84
3,943.29
190,000.00
02/01122
2,794.83
131,686.08
0
35
5.000%
08/01122
60,000.00
4,303.13
14,392.04
359.81
49,551.28
130,000.00
08/01122
41,764.22
89,921.86
c.n
36
02/01123
2,803.13
2,803.13
130,000.00
02/01123
1,820.60
88,101.26
37
4.250%
08/01123
65,000.00
2,803.13
67,803.13
65,000.00
08/01123
44,037.62
44,063.64
38
02/01124
1,421.88
1,421.88
65,000.00
02/01124
923.39
43,140.25
39
4.375%
08/01124
65000.00
1421.88
66421.88
08/01124
43140.25
Total Due
Principal
$
535,000.00
Principal Only
$
443406.32
Interest
$
147700.10
Savings Credits
$
76474.52
$
21,585.21
Principal and Interest
$
584640.37
Payments
Made in
2014
18
02/01114
02/01114
$
8,624.00
19
08/01114
$
40000.00
08/01114
34603.60
$
40000.00
$
43,227.60
REF.
C-5
C-5
Exhibit - C-16
SCHEDULE
OF BOND ANTICIPATION
NOTES
ORIGINAL
BALANCE
ORD.
IMPROVEMENT
DATE OF
RATE OF
DATE OF
DATE OF
DECEMBER
31,
NO.
DESCRIPTION
ISSUE
INTEREST
ISSUE
MATURITY
INCREASED
2014
1503-00
Purchase
and/or Installation
of Equip. for
Various Departments
12/18/14
1.00%
12/18/14
07/17/15
$
136.00
$
136.00
1544-01
Improv. to Various Buildings
& Facilities
12/18/14
1.00%
12118/14
07/17/15
9,253.00
9,253.00
1548-01
Reconstr.
Of Roads Including
Drainage
12/18/14
1.00%
12/18/14
07/17/15
21,123.00
21,123.00
1562-02
Various Capital Improvements
12/18/14
1.00%
12/18/14
07/17/15
8,691.00
8,691.00
1571-02
Constr. of Bikeway
- Fitzsimmons
Park to
Mountainview
Park
12118/14
1.00%
12118/14
07/17/15
37,085.00
37,085.00
1599-04
Installation
of New Sidewalks,
Croosswalks,
Pedestrian
Signs at various
locations.
12/18/14
1.00%
12/18/14
07/17115
3,157.00
3,157.00
1605-04
Various Capital Improvements
12/18/14
1.00%
12/18/14
07/17/15
985.00
985.00
I-'
1609-04
Resurfacing
of South Ave.
12/18/14
1.00%
12/18/14
07/17/15
125,151.00
125,151.00
0
1626-04
911 Equipment
12/18/14
1.00%
12/18/14
07117/15
2,592.00
2,592.00
0\
1643-05
Various Capital Improvements
12/18114
1.00%
12/18/14
07/17115
127,256.00
127,256.00
1646-05
AmendediStreetscape
Improvement
Rt 28
12/18/14
1.00%
12/18114
07/17/15
30,400.00
30,400.00
1676-05
Rack Body Truck
12/18/14
1.00%
12/18/14
07117/15
1,261.00
1,261.00
1687-06
Various Capital Improvements
12118/14
1.00%
12/18/14
07/17/15
107,838.00
107,838.00
1708-07
Acquisition
of Street Sweeper
12/18/14
1.00%
12118114
07117/15
3,349.00
3,349.00
1772-10
Various Capital Improvements
12/18/14
1.00%
12/18/14
07/17/15
273,030.00
273,030.00
1797-11
Various Capital Improvements
12/18/14
1.00%
12/18/14
07/17/15
1,248,566.00
1,248,566.00
1818-12
Various Capital Improvements
12/18/14
1.00%
12/18/14
07/17/15
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview
Avenue
12/18/14
1.00%
12/18/14
07/17/15
76,000.00
76,000.00
1403-97
Constr. of Curbs & Gutters - Cedar, Hooker, etc.
12/18/14
1.00%
12/18/14
07117115
2,180.00
2,180.00
1411-97
Constr. of Curbs & Gutters - Emerson & June Way
12/18/14
1.00%
12/18114
07/17/15
11,192.00
11,192.00
1435-98
Constr. of Curbs & Gutters
- Ashland Ave.
12/18114
1.00%
12/18114
07117/15
9888.00
9888.00
$
2:878:258.00
$
2,878,258.00
Ref.
C-2
C
Exhibit - C-17
BONDS AND NOTES AUTHORIZED
BUT NOT ISSUED
ORD.
BALANCE
AUTHORIZED
2014
BAN'S
BALANCE
NUMBER
IMPROVEMENT
DESCRIPTION
DEC. 31,2013
2014
FUNDING
ISSUED
DEC. 31,2014
General:
1503-00
Purchase and/or Installation of Equip. for
Various Departments
$
136.00
$
136.00
$
1513-00
Purchase of Senior Citizens Bus
0.08
0.08
1544-01
Improv. to Various Buildings & Facilities
9,253.38
9,253.00
0.38
1548-01
Reconstr. of Roads Including Drainage
(NJ DOT $250,000)
21,123.19
21,123.00
0.19
1562-02
Various Capital Improvements
8,691.75
8,691.00
0.75
1571-02
Constr. of Bikeway - Fitzsimmons
Park to
Mountainview
Park ($50,000 NJ DOT Discr. Bike Progr.)
37,085.00
37,085.00
1599-04
Installation of New Sidewalks, Crosswalks, Pedestrian Signs
3,157.25
3,157.00
0.25
1605-04
Various Capital Improvements
985.00
985.00
1609-04
Resurfacing of South Ave.
125,151.31
125,151.00
0.31
1626-04
911 Equipment
2,592.00
2,592.00
1643-05
Various Capital Improvements
127,256.00
127,256.00
1646-05
Amended/Streetscape
Improvement
on Route 28
30,400.00
30,400.00
1676-05
Rack Body Truck
1,261.55
1,261.00
0.55
1687-06
Various Capital Improvements
107,838.96
107,838.00
0.96
""""
1708-07
Acquisition of Street Sweeper
3,349.30
3,349.00
0.30
0
1772-10
Various Capital Improvements
273,030.00
273,030.00
'1
1797-11
Various Capital Improvements
1,248,566.00
1,248,566.00
1808-12
Acq and Demolition of Certain Flood Prone Properties
2,540,000.00
2,187,008.11
352,991.89
1818-12
Various Capital Improvements
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview Avenue
76,000.00
76,000.00
1857-14
Improvements
to Marlborough Ave
30,400.00
30,400.00
Local:
1403-97
Constr. of Curbs & Gutters - Cedar, Hooker, etc.
2,180.42
2,180.00
0.42
1411-97
Constr. of Curbs & Gutters - Emerson & June Way
11,192.23
11,192.00
0.23
1435-98
Constr. of Curbs & Gutters -Ashland
Ave.
9888.56
9888.00
0.56
$
5,418,262.98
$
30400.00
$ 2,187,008.11
$
2,878,258.00
$
383396.87
Ref.
C
SWIMMING
POOL UTILITY FUND
-108 -
Exhibit - D-5
SCHEDULE
OF SWIMMING
POOL UTILITY CASH AND INVESTMENTS
TREASURER
REF.
OPERATING
FUND
CAPITAL FUND
SNACK BAR ACCOUNT
Balance - December
31, 2013
D
$443,815.50
$3,075.09
Increased by Receipts:
Membership
Fees
D-3
235,520.01
Miscellaneous
Revenues
D-7
81,925.41
Snack Bar Operation
D-12
26,551:00
Due to Current Fund
D-13
4,145.20
67.15
BAN's
D-19
1,235,000.00
Premium on BAN sale
D- 2
2,619.00
Transfer from Snack Bar Account
D- 5
9847.46
331438.08
1,237,619.00
26,618.15
775,253.58
1,237,619.00
29,693.24
Decreased
by Disbursements:
I--'
Budget Appropriations
D-4
256,572.55
0
\0
Appropriation
Reserves
D-ll
26,722.62
Snack Bar Operations
D-12
16,703.54
Due to Current Fund
D-l3
3,445.80
63.38
Improvement
Authorizations
D-18
319,138.97
Transfer to Operating Fund
D-5
9847.46
286740.97
3191138.97
261614.38
Balance - December
31,2014
D
$4881512.61
$9181480.03
$3078.86
Exhibit - D-6
ANALYSIS OF SWIMMING
POOL CAPITAL
CASH AND INVESTMENTS
BALANCE
BALANCE
DEC. 31,
DEC. 31,
2013
2014
Capital Improvement
Fund
$
72,730.10
$
7,730.10
Improvement
Authorizations
Unfunded
(156,330.00)
824,531.03
Due (from)/to Swimming Pool Operating Fund
83,599.90
83,599.90
Fund Balance
2619.00
$
$
918,480.03
Ref.
D
D
-110 -
Exhibit - 0-7
SCHEOULE
OF MISCELLANEOUS
RECEIPTS
SWIMMING
POOL UTILITY OPERATING FUNO
YEAR 2014
Miscellaneous
(Net of Refunds):
Interest Income
$
138.16
Guest Admissions
20,110.25
Swim Classes Registration
20,269.00
Long Course
30,405.00
Swim Team Membership
6,375.00
Aquacize
2,060.00
Synchro Membership
1,350.00
Syncro Show
253.00
Miscellaneous
Income
965.00
Subtotal
0-3,0-5
81,925.41
Food Concession
0-3,0-12
9847.46
$
91 772.87
-111-
ACCOUNT
Swimming Pool and Grounds
Improvement - 1987
Improvement - 1991
Improvement - 1997
SCHEDULE OF FIXED CAPITAL
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
DEC. 31,
DEC. 31,
2013
2014
$ 234,000.00
$
234,000.00
217,721.56
217,721.56
65,300.00
65,300.00
149:270.00
149:270.00
$ 666:291.56
$
666:291.56
REF.
D
D
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETE
SWIMMING POOL UTILITY CAPITAL FUND
ORO. NO.
IMPROVEMENT
DESCRIPTION
1771-10
Swim Pool Improvements
1852-14
Swim Pool Improvements
ORDINANCE
BALANCE
DEC. 31,
2013
INCREASES
IMP
AUTH
Exhibit - D-8
Exhibit - D-9
BALANCE
DEC. 31,
2014
$
350,000.00
1,300:000.00
$ 350,000.00
$ 1:300:000.00
$ 1:650:000.00
-112 -
D
D-18
D
Exhibit - D-l 0
REF.
Balance - December 31, 2013
D
$
20,006.06
Increased by:
Charges from Approp. Reserves
D-l1
12964.95
Balance - December 31,2014
D
$
32:971.01
DATE
AMOUNT
07/27/10
$ 350,000.00
06/24114
1,300,000.00
$ 350,000.00
$ 1,300,000.00
SCHEDULE OF ACCOUNTS PAYABLE
SWIMMING POOL UTILITY FUND
Exhibit - D-11
SCHEDULE OF 2013 APPROPRIATION RESERVES
SWIMMING POOL UTILITY OPERATING FUND
BALANCE
DECEMBER 31: 2013
BALANCE
APROPRIATION
RESERVE FOR
AFTER
PAID OR
BALANCED
RESERVES
ENCUMBRANCES
TRANSFERS
CHARGED
LAPSED
Operations:
Salaries and Wages
$
35,445.99
$
$
35,445.99
$
$
35,445.99
Other Expenses
41349.27
35:260.50
76609.77
37:687.57
38:922.20
Total Operations
76:795.26
35,260.50
112:055.76
37,687.57
74,368.19
Deferred Charges and Statutory Expenditures
Contribution to:
Social Security System
1,878.94
1,878.94
1,878.94
f-.l.
State Unemployment Insurance
2:000.00
2:000.00
2:000.00
f-.l.
(;J
Total Deferred Charges and
Statutory Expenditures
3878.94
3878.94
2:000.00
1878.94
$
80:674.20
$
352260.50
$
115934.70
$
39:687.57
$
76:247.13
REF.
D
D
D-1
Cash Disbursements
D- 5
$
26,722.62
Accounts Payable
D-I0
12,964.95
$
39:687.57
SCHEDULE
OF RESERVE FOR SNACK BAR OPERATIONS
SWIMMING
POOL UTILITY OPERATING FUND
Increased by:
Receipts from Sales
D-5
Decreased by:
Transfer to Miscellaneous
Revenues
Purchases
D-3, D-7
D-5
9,847.46
16703.54
-114 -
Exhibit - D-12
$
26,551.00
$
26,551.00
Exhibit - D-13
SCHEDULE OF INTERFUNDS
RECEIVABLE/PAYABLE
SWIMMING POOL UTILITY OPERATING FUND
SWIMMING
POOL
CURRENT
REF.
Total
CAPITAL
FUND
Balance - December 31, 2013
D
Due from
$
83,599.90
$
83,599.90
Due to
137.88
$
137.88
Increased by:
Interest earned on investments
D-5
67.15
67.15
Interest earned on investments - snack bar
D-5
4 145.20
4 145.20
87,950.13
83,599.90
4,350.23
Decreased by:
Interest earned on investments
D-5
63.38
63.38
Interest earned on investments - snack bar
D-5
3445.80
3445.80
Balance - December 31, 2014
Due from
D
$
83,599.90
$
83,599.90
Due to
D
841.05
$
841.05
-115 -
Exhibit - D-14
SCHEDULE OF CAPITAL IMPROVEMENT FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2013
D
$
72,730.10
Decreased by:
Appropriated to Finance Improvement
Authorizati ons
D-16
65,000.00
Balance - December 31, 2014
D
$
7,730.10
Exhibit - D-15
SCHEDULE OF RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2013
D
$ 666,291.56
Balance - December 31, 2014
D
$ 666,291.56
-116 -
Exhibit - D-16
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
FIXED
BALANCE
IMPROVEMENT
DATE OF
DEC. 31,
CAPITAL
DEC. 31,
ORD.NO.
DESCRIPTION
ORD.
2013
AUTHORIZED
2014
1771-10
Swim Pool Improvements
07/27/10
$
100,000.00
$ 100,000.00
1852-14
Swim Pool Improvements
06/24/14
$
65,000.00
65,000.00
$
100,000.00
$
65,000.00
$ 165,000.00
D
D-14
D
Exhibit - D-17
SCHEDULE OF DUE TO SWIMMING OPERATING FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2013
D
$
83,599.90
Balance - December 31, 2014
D
$
83,599.90
-117 -
Exhibit - D-18
SCHEDULE OF IMPROVEMENT
AUTHORIZATIONS
SWIMMING
POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
ORD.
ORDINANCE
DEC 31, 2013
2014
PAID OR
DEC 31, 2014
NO.
IMPROVEMENT
DESCRIPTION
DATE
AMOUNT
UNFUNDED
AUTHOR.
CHARGED
UNFUNDED
General Improvements:
1771-10
Swim Pool Improvements
07/27/10
$
350,000.00
$
93,670.00
$
93,670.00
1852-14
Swim Pool Improvements
06/24114
1,300,000.00
$ 1,300,000.00
$ 319,138.97
980,861.03
$
93,670.00
$ 1,300,000.00
$ 319,138.97
$
1,074,531.03
Ref.
D
D-9
D-5
D
""""'
""""'~
I
Exhibit - D-19
SCHEDULE OF BOND ANTICIPATION NOTES
DATE OF
ORD.
ORIGINAL
NO.
IMPROVEMENT
DESCRIPTION
ISSUE
DATE OF
DATE OF
INTEREST
B.A.N.S
BALANCE
ISSUE
MATURITY
RATE
ISSUED
DEC. 31, 2014
1852-14
Swimming Pool Improvements
09/30114
09/30/14
09/29/15
1.00%
$ 1,235,000.00
$
1,235,000.00
$ 1,235,000.00
$
1,235,000.00
D-5
D
SCHEDULE OF ACCRUED
INTEREST ON BONDS AND NOTES
SWIMMING
POOL UTILITY OPERATING FUND
Increased by:
Accrued Interest Charged to:
Fund Balance
D-l
Balance - December 31, 2014
D
Analysis of Balance - December 31, 2014:
Principal
Outstanding
12/31/14
Interest
Rate
BAN's
$1,235,000.00
1.000%
09/30114
12/31/14
3 months
-120 -
Exhibit - D-20
$
$
3,087.50
3,087.50
Amount
$
3,087.50
Exhibit - D-21
BONDS AND NOTES AUTHORIZED
BUT NOT ISSUED
ORD.
NUMBER
IMPROVEMENT
DESCRIPTION
1771-10
Swim Pool Improvements
BALANCE
AUTHORIZED
BAN'S
BALANCE
DEC. 31, 2013
2014
ISSUED
DEC. 31, 2014
$
250,000.00
$
250,000.00
$
1,235,000.00
$ 1,235,000.00
$
250,000.00
$
1,235,000.00
$ 1,235,000.00
$
250,000.00
Ref.
D
1852-14
Swim Pool Improvements
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART IV
SUPPLEMENTARY
DATA
-122 -
COMPARATIVE
STATEMENT
OF OPERATIONS
AND
CHANGE
IN FUND BALANCE
- CURRENT
FUND
Revenue
and Other
Year 2014
Year 2013
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$
996,000.00
2.20
$
645,000.00
1.49
Miscellaneous
- From Other
Than Local Property
Tax Levies
4,101,120.20
9.08
3,886,355.73
8.98
Collection
of Delinquent
Taxes
and Tax Title Liens
1,029,346.73
2.28
826,196.25
1.91
Collection
of Current
Tax Levies
39,061,746.12
86.44
37,912,308.96
87.62
Total Income
45,188,213.05
100.00
43,269,860.94
100.00
Expenditures
Budget Expenditures:
Municipal
Purposes
16,330,784.01
37.11
15,360,852.97
36.19
County Taxes
5,609,423.08
12.75
5,579,629.40
13.15
LoclliSchoolTaxes
22,058,200.00
50.13
21,499,441.00
50.66
Other Expenditures
6,416.82
0.01
221.57
0.00
Total Expenditures
44,004,823.91
100.00
42,440,144.94
100.00
Excess in Revenue
1,183,389.14
829,716.00
Fund Balance January
1
1,514,126.73
1,329,410.73
2,697,515.87
2,159,126.73
Less:
Utilization
as Anticipated
Revenue
996000.00
645,000.00
Fund Balance December
31
$
1,701,515.87
$
1,5142126.73
-124 -
COMPARATIVE
STATEMENT OF OPERATIONS AND CHANGE
IN FUND BALANCE
- SWIMMING
POOL UTILITY OPERATING FUND
Revenue and Other
Year 2014
Year 2013
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$
59,690.00
12.89
$
43,980.00
8.77
Membership
Fees
235,520.01
50.84
246,767.08
49.23
Miscellaneous
From Other
Than Membership
Fees
168,020.00
36.27
210,529.94
42.00
Total Income
463,230.01
100.00
501,277.02
100.00
Expenditures
Budget Expenditures:
Operating
389,390.00
99.21
372,800.00
100.00
Other Expenditures
3,087.50
0.79
Total Expenditures
392,477.50
100.00
372,800.00
100.00
Excess in Revenue
70,752.51
128,477.02
Fund Balance January 1
394,411.85
309,914.83
465,164.36
438,391.85
Less:
Utilization as Anticipated
Revenue
59,690.00
43,980.00
Fund Balance December 31
$
405,474.36
$
394,411.85
-125 -
COMPARATIVE
SCHEDULE OF TAX RATE INFORMATION*
Tax Rate:
Apportionment
of Tax Rate:
Municipal:
County:
2.293
2.226
2.184
0.094
0.096
0.105
1.044
1.033
1.039
0.085
0.088
0.096
4.510
4.361
4.276
Municipal Library:
County Open Space:
Local School:
Assessed Valuation:
2014
$496,925,279.00
2013
$497,716,343.00
2012
$498,168,295.00
*Per Abstract of Ratables, Middlesex County, NJ
Note: Under the provisions of Chapter 73, L.1976, the County Board of Taxation estimated the
amount of approved Veterans and Senior Citizens Tax Deductions for 2014 to be $149,500.
COMPARISON
OF TAX LEVIES AND COLLECTION
CURRENTLY
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the
percentage of current collection could be an indication of a probable increase in future tax levies.
Percentage
Calendar
Cash
of
Year
Tax Levy
Collections
Collection
2014
$39,907,597.14
$39,061,746.12
97.88%
2013
38,856,328.51
37,912,308.96
97.57%
2012
38,404,362.51
37,520,345.73
97.70%
-126 -
DELINQUENT
TAXES AND TAX TITLE LIENS
This tabulation includes a comparison,
expressed in percentage,
of the total of delinquent taxes and
tax title liens, in relation to the tax levies of the last three years.
Amount of
Amount of
Percentage
Calendar
Tax Title
Delinquent
Total
of
Year
Liens
Taxes
Delinquent
Tax Levy
2014
$305,431.67
$823,307.17
$1,128,738.84
2.83%
2013
419,249.19
894,628.05
1,313,877.24
3.38%
2012
382,105.14
826,645.39
1,208,750.53
3.15%
PROPERTY ACQUIRED
BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on the basis of the last
assessed valuation of such properties, was as follows:
Calendar
Year
Amount
2014
2013
2012
$1,423,139.00
1,423,139.00
1,423,139.00
COMPARATIVE
SCHEDULE
OF FUND BALANCES
Swimming Utility
Operating Fund
Utilized in
Budget of
Calendar
Succeeding
Year
Balance
Year
2014
$1,701,515.87
$1,019,770.00
2013
1,514,126.73
996,000.00
2012
1,320,410.73
645,000.00
2011
936,117.19
525,000.00
2010
1,004,318.34
900,000.00
2014
$405,474.36
$66,224.00
2013
394,411.85
59,690.00
2012
309,914.83
43,980.00
2011
271,934.98
43,980.00
2010
255,664.48
43,980.00
Current Fund
-127 -
OFFICIALS
IN OFFICE AND SURETY BONDS
The following officials were in office as at December 31,2014:
NAME
TITLE
AMOUNT
OF BOND
Ronald S. Dobies
Sean Kaplan
Kevin Dotey
Stephen Greco
Patricia Jenkins
Robert Schueler
Michele Tackach
Mayor
President of Council
Councilperson
Councilperson
Councilperson
Council person
Councilperson
*
*
*
*
*
*
*
Andrea Corcoran
Borough Treasurer/
Chief Financial Officer (to 02/28114)
*
Tonya Hubosky
Tax Collector/Tax
Search Office
Qualified Purchasing Agent! Acting CFO
*
Kathleen Anello
Borough Clerk/Dog License Officer/
Assessment
Search Officer
*
Lizandra DeAngelis
Dennis Fackelman
Court Administrator
Municipal Court Judge
*
*
Aravind Aithal, Esq.
James Ayotte
Terry Brundage
Frank Betts
Linda Chismar
Remington & Vernick
Beverly Weber
Kathleen Bird
Attorney
Construction
Code Official
Health Officer
Tax Assessor
Deputy Borough Clerk/
Registrar of Vital Statistics
Engineer
Treasurer, Free Public Library
Secretary, Swim Pool Commission
* All officials and employees handling and collecting Borough Funds are covered by Public
Employees
Blanket Bond of$I,OOO,OOO.OOunder the Joint Insurance Fund.
All of the bonds were examined and were properly executed.
-128 -
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PARTV
GENERAL
COMMENTS
AND RECOMMENDATIONS
-129 -
BOROUGH
OF MIDDLESEX
COUNTY OF MIDDLESEX,
NEW JERSEY
YEAR ENDED DECEMBER
31, 2014
GENERAL COMMENTS
An audit of the financial
accounts
and transactions
of the Borough
of Middlesex,
County of
Middlesex,
New Jersey, for the calendar year ended December
31, 2014, has been completed.
The General Comments are herewith set forth:
Scope of Audit
The audit covered the financial
transactions
of the Finance Department
and the other various
offices and departments
collecting
fees within the Borough of Middlesex,
County of Middlesex,
New Jersey.
The audit did not and could not determine the character of services rendered for which payment
had been made or for which reserves had been set up, nor could it determine the character, proper
price or quantity
of materials
supplied
for which claims had been passed.
Cash on hand was
counted
and cash
and investment
balances
were
reconciled
with
independent
certifications
obtained directly from the depositories.
Revenues and receipts were established and verified as to
source and amount insofar as the records permitted.
INTERNAL
CONTROL MATTERS
In planning
and performing
our audit of the financial
statements
of Borough
of Middlesex,
County of Middlesex, New Jersey as of and for the transition year ended December 31,2014,
in
accordance
with auditing
standards
generally
accepted
in the United
States of America,
we
considered the Borough's
internal control over financial reporting (internal control) as a basis for
designing
our auditing
procedures
for the purpose
of expressing
our opinion
on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness
of the Borough's
internal control. Accordingly,
we do not express an opinion on the effectiveness
of the Borough's
internal control.
Our consideration
of internal
control
was for the limited purpose
described
in the preceding
paragraph
and would not necessarily
identify all deficiencies
in internal control that might be
significant deficiencies or material weaknesses.
A control deficiency 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
misstatements
on a timely basis.
A significant
deficiency
is a control
deficiency,
or combination
of control
deficiencies,
that
adversely affects the entity's
ability to initiate, authorize, record, process, or report financial data
reliably in accordance
with generally accepted accounting principles
such that there is more than
a remote
likelihood
that a misstatement
of the entity's
financial
statements
that is more than
inconsequential
will not be prevented or detected by the entity's
internal control.
-130 -
GENERAL
COMMENTS
INTERNAL
CONTROL MATTERS
(Cont'd.)
A material weakness
is a significant
deficiency,
or combination
of significant
deficiencies,
that
results in more than a remote likelihood that a material misstatement
of the financial statements
will not be prevented or detected by the entity's internal control.
With respect to the reporting of internal control matters, standards require that only a significant
deficiency
and/or a material
weakness
need be reported
in writing to management
and those
charged with governance.
The control deficiencies
reported
are not considered
to be significant
deficiencies
nor material
weaknesses.
In addition, these control deficiencies
are not required to be reported
in writing,
however, control deficiencies are presented to management
and those charged with governance
in
this report as a means to present those matters
identified
in review of the Borough's
internal
controls
and as a means to inform management
and those charged with governance
as to the
auditing standards requirements
with respect to internal controls.
As indicated below, we identified certain deficiencies
in internal control that we consider to be
control deficiencies.
In addition, during our audit, we noted certain matters involving the internal control and other
operational
matters that are presented for your consideration.
This letter does not affect our report
dated October 2, 2015 on the financial statements
of the Borough of Middlesex.
Our comments
and recommendations,
which have been discussed with appropriate members of management,
are
intended to improve the internal control or result in other operating efficiencies.
Control Deficiencies:
2014-1
General Ledger Maintenance
The
Borough's
general
ledger
records
for
its trust
funds
showed
cash
receipts
and
cash
disbursements
posted
to the various
reserve
accounts,
but not posted
to the cash accounts.
Similarly,
the general ledger records for its general capital fund showed cash receipts posted to
the various assets and liabilities, but not posted the cash accounts. As a result debits did not equal
credits.
The audit adjustments
in amounts
that are material
to the financial
statements
were
proposed and approved by management
based upon the results of our engagement.
2014-2 Cash Receipts and Disbursements
Journals
The cash receipts
and disbursements
journals
in the general
capital
fund were found to be
incomplete,
with
omitted
entries
noted.
These
omissions
related
directly
to tracking
of
collections
and payments for FEMA and NJOEM grant funds relating to Ordinance
1808-12 for
the acquisition
and demolition
of certain flood prone properties
and included matters relating to
the Borough's
financial information processing
system.
-131-
GENERAL
COMMENTS
INTERNAL
CONTROL MATTERS (Cont'd.)
Control Deficiencies
(Cont'd.):
2014-3 Segregation of Duties
Conditions
exist whereby the same person may collect, record and deposit cash receipts in the
following
offices
-
Tax Office,
Finance,
Health
Department/
Vital
Statistics,
Construction-
Zoning/ Planning, Police, Fire Prevention, Recreation and Borough Clerk.
This condition is the result of the staffing levels and multi tasks performed
by personnel
within
the respective offices.
OTHER MATTERS
Contracts and Agreements Required
to be Advertised Per N.J.S.A. 40A:II-4
N.J.S.A.
40A:11-4 states "Every contract or agreement,
for the performance
of any work or the
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 after public advertising
for bids and bidding therefor, 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
$17,500
except
by
contract or agreement."
On June 9, 2010, the Local Public Contracts
Law was amended,
effective on January
1, 2011.
The amendments
address the bid threshold (Section 7, N.J.S.A. 40A:11-3), thereby increasing the
amount from $21,000.00
to $26,000.00
under which a contract may be awarded without public
advertising.
Furthermore,
if the Borough's
Purchasing
Agent is "Qualified"
the Council may
increase the bid threshold
from $29,000 to $36,000. On May 5, 2011, a revised Local Finance
Notice
was issued which reduced the threshold
for Non-QPA
municipalities
from $26,000 to
$17,500. As of December 31, 2014, the Borough has a Qualified Purchasing Agent.
A review
of the Borough's
purchasing
procedures
indicates
bids were requested
by public
advertising for the following items tested, as disclosed in the official minutes:
Material, Supplies, Equipment,
Service Rentals, Construction
and Repairs:
Wheel
Loader
Backhoe;
Road Improvements;
Fire Pumper;
Mill & Overlay
Project;
Bound
Brook Pump Station Improvements;
Upgrades
to Middlesex
Community
Pool; Demolition
of
State Properties
State Contracts:
VHF
Radio
Equipment
for
Narrowbanding
Compliance;
Dispatch
Console
for
Police
Department;
Radios for Police Dispatch Console; CAD System for Police Department
-132 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Contracts and Agreements
Required
to be Advertised Per N.J.S.A. 40A:II-4
(Cont'd.)
The
minutes
indicated
the
adoption
of resolutions
authorizing
the
purchase
through
state
approved vendors as required by NJ.A.C.
5:34-1.2.
The minutes
indicate
that resolutions
were adopted
and advertised
authorizing
the awarding
contracts or agreements for "Professional
Services" per N J .S.A. 40A: 11-5.
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.
A test examination
of expenditures
revealed no individual payments,
contracts or agreements
in
excess of $17,500 or $36,000 as applicable "for the performance
of any work or the furnishing or
hiring of any materials or supplies"
other than those where bids had been previously
sought by
public advertisement
or where a resolution
had been previously
adopted under the provisions
of
NJ.S.A.40A:II-6.
Any interpretations
as to possible violation ofN.J.S.A.
40A:II-4
and N.J.A.C. 5:30-14 would be
in the province of the municipal solicitor.
Compliance
with P.L. 2005, c.271
The threshold
for Pay-to-Play
is set at $17,500, with no escalator provision. "Pay-to-Play"
laws
cover all contracts (not just professional
services as some believe). Any contract (or aggregation
of purchases
of similar goods or services) that does not meet "fair and open" standards requires
the Borough to obtain the necessary c. 271 documents.
The provisions of c. 271 became effective
on January 1,2006.
A non-compliance
would result with the issuance of purchase
orders exceeding
$17,500 during
the
fiscal
period
without
a "fair
and
open"
process,
and
without
obtaining
the
requisite
disclosures.
It is important
to note that the laws and regulations
implementing
"Pay-to-Play"
focus on vendors rather than categories
of goods and services.
While this change may appear
subtle, it greatly expands the monitoring required to assure continuing compliance.
Tests of expenditures
for vendors
with payments
in excess
of $17,500.00
and less than the
applicable
bid threshold
indicated the Borough had the required documentation
for compliance
with P.L. 2005, c.271 for items tested.
Collection of Interest on Delinquent Taxes and Assessments
N.J.S. 54:4-67, as amended, provides the method for authorizing
interest and the maximum
rate
to be charged for the non- payment of taxes or assessments
on or before the date when they would
become delinquent.
-133 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Collection ofInterest
on Delinquent Taxes and Assessments
(Cont'd.)
The governing body, on January
1,2014,
adopted the following resolution authorizing interest to
be charged on delinquent taxes:
WHEREAS,
R.S. 54:4-67 has been amended to permit the governing body to fix the rate
of interest to be charged for the nonpayment
of taxes or assessments
on or before the date when
they would become delinquent
and may provide that no interest shall be charged if payment of
any installment is made within ten (10) days after the date upon which the same is payable;
NOW, THEREFORE,
BE IT RESOLVED
that the Borough Council does hereby fix the
rate of interest at eight percent (8%) per annum on the first One Thousand Five Hundred Dollars
($1,500) and at eighteen percent (18%) per annum on any amount in excess of One thousand Five
Hundred Dollars ($1,500) from the date when any tax installment
shall be payable and delinquent
until the said installment together with interest is paid provided, however, that if any installments
shall be paid within ten (10) days after the date payable, in that event there shall be no interest
charged.
"In addition, pursuant to NJ.S.A.
54:4-67, there is hereby fixed as a penalty to be charged to a tax
payer with a delinquency
in excess of $10,000 who fails to pay the delinquency
prior to the end
of the calendar year of 6 percent to the amount of delinquency".
The audit of the Collector's
records
on a test basis indicated
that interest
on all delinquent
accounts was calculated in accordance
with the foregoing resolution for items tested.
Delinquent Taxes and Tax Title Liens
The last tax sale was held on October 14,2014.
There were no properties excluded from the sale.
There are no properties payable on an installment basis.
The following
comparison
is made of the number of tax title liens receivable
for the last three
years:
Year
Number of Liens
CY 2014
CY 2013
CY 2012
11
12
13
Investments
The Borough has adopted a formal cash management
plan policy in compliance
with N.J.S.A.
40A:5-14 of the Local Fiscal Affairs Law, which requires that "each local unit shall adopt a cash
management
plan and shall deposit its fund pursuant to that plan".
-134 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Interfund Balances
Interfund Balances appear in the balance sheets of the Borough's
financial statements of the year
ended December 31,2014.
These interfunds, in most cases, resulted from CY 2014 operations and should be cleared by cash
transfer where feasible.
Purchase Order and Encumbrance
System
The
Borough
utilized
a purchase
order
system
for its expenditures
in connection
with
its
budgetary
accounting
encumbrance
system
during
the year
under
review.
Transactions
are
approved based on availability
of funds. The utilization of confirming orders was noted.
Payment of Claims
Payments
of claims were examined
on a test basis for the year under review. There were no
exceptions noted for items tested.
Surety Bonds
The "List
of Officials",
included
as part of the Supplementary
Data section
of this report,
discloses
the status of surety bond coverage's
in effect at December
31, 2014. The minimum
surety bond requirements
for both the Tax Collector and Municipal Court were met for fiscal year
2014.
During July 1998 the Local Finance Board completed a readopting of the Board's
general rules in
the New Jersey Administrative
Code.
Based upon the new provisions
ofNJ.A.C.
5:30-8.3 and
8.4, local units are encouraged
to utilize new recommended
amounts
in lieu of the minimum
amounts
in order to provide a higher level of security of public funds.
The Borough's
surety
bond Coverage
meets the new recommended
amounts
as it is covered under the Garden
State
Joint Insurance Fund.
Municipal Court
The financial records maintained
by the Municipal
Court during the period were reviewed.
The
examination
of the general account included review, on a test basis, that deposits were properly
recorded and spread by receipt category and disbursements
were made to the appropriate agencies
on a timely basis.
The bank reconciliations
for both the general and bail accounts were made
available
for review.
The examination
of the bail account's
financial
and supporting
records
maintained by the Municipal Court revealed no exceptions for items tested
The processing
of traffic
and criminal
cases entered
on the State's
on-line
computer
system
revealed no exceptions for items tested.
-135 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Condition of Records - Other Officials Collecting Fees
Our reviews
of the records
maintained
for other
officials
collecting
fees were designed
to
determine that minimum levels of internal controls and accountability
were met, that cash receipts
were deposited or turned over to the Treasurer's
accounts within a 48 hour period as required by
N.J.S.A. 40A:5-15, and the fees charged were in accordance
with the provisions
of the Borough
Code and that monthly financial reports are being submitted to the Finance Department
timely.
There were no exceptions noted for items tested.
Condition of Records - Collector of Revenues
The records maintained by the Collector of Revenues were reviewed.
Computerized
cash receipt
records were agreed to manual controls daily and in total monthly with no exceptions
noted for
items tested.
No exceptions were noted for the testing of computerized
real estate tax billings and
billing adjustments for real estate taxes.
Condition of Records - Finance Office
The financial records maintained
by the Finance Department
during the period were reviewed.
A
general ledger was maintained
for each fund, and was found to be suitable to serve as the basis
for financial
statement
preparation.
Control accounts
were generally
in proof with supporting
detail.
However,
matters
were noted
with respect
to the posting
of various
transactions,
as
discussed in the internal control matters section of these comments.
General Capital Fund
During
our
audit
of the
General
Capital
Fund,
we
noted
that
several
old
improvement
authorizations
had no activity
for several years.
We also noted that there were improvement
authorizations
in excess of 5 years old with cash deficit balances. Subsequent to the balance sheet
date, the Borough
issued
General
Obligation
Bonds
to fund these
projects.
As a result
no
recommendation
is made.
Sewer Billings
The Borough adopted Ordinance
1819-12, which amended the sewer ordinance
of the Borough
amending the existing user classes schedule as set forth in the code of the Borough. Based on the
new ordinance, the Borough billed in the year 2013, sewer usage in the amount of $174,787.27,
however
not all accounts
were billed as required.
These accounts
were subsequently
billed in
2014.
As a result
of the non-billings,
the amount
of revenues
collected
during
2013
was
substantially
less than the amount of $556,000.00
budgeted for during 2013. Due to a review of
the ordinance,
it was determined
that the billing
amounts
required
adjustments
to a total of
$330,626.27.
The 2013 readings that should have been billed in 2014 were subsequently
billed in
2015.
We recommend
all sewer billings be processed in accordance with the Borough's
ordinances on a
timely basis.
-136 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Administration
and Accounting
of State & Federal Grants
During CY 2014, the Borough operated programs that were funded in whole or in part by state or
federal grant awards.
As part of the acceptance
of these funds, the Borough is required to make
assurances
to the grantor agency that it will comply, in its general operations
as well as in the
operation of grant funded programs, with various laws and regulations.
In addition, the individual
grant contracts impose specific compliance requirements
for the operations of each program.
The acceptance of grant funds also places additional requirements
upon the Borough with respect
to the Borough's
system of internal controls.
Based upon the matrix of requirements
applicable
to a specific grant, the Borough's
internal controls are required to include systems and policies
and procedures designed to ensure compliance with the many requirements.
We noted that the Finance office made an effort to review prior years' grant receivable balances
and unexpended
grant reserve balances for proper disposition at December 31, 2014. It was noted
that the Borough continues to carry unexpended
balances of grant awards that are several years
old.
This condition may have resulted from the decentralized
management
of the various grant
programs.
In the current environment,
it is possible that grant program coordinators
may have
reported expenditures
that were not charged to grant program appropriations.
We suggest that the
Borough continue to monitor prior years'
unexpended
grant reserves and that proper disposition
is made in compliance with the terms and conditions of the grant agreements.
Internal Control Documentation
Statement
on Auditing Standards
115 sets forth requirements
upon the auditee that includes the
documentation
of its internal
controls.
We suggest the Borough
initiate this process
and also
consider utilizing the framework
established
by the Committee
of Sponsoring
Organizations
of
the Treadway Commission
(COSO) for its documentation,
which includes the five components
of
internal
controls,
as
follows:
Control
Environment;
Risk
Assessment;
Control
Activities;
Information
and Communication;
and Monitoring.
In addition,
we suggest the documentation
should also include the internal controls that exist over grant compliance along with providing for
this documentation
in conjunction
with information
relating to job descriptions
and procedures
manual.
-137 -
GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Compliance
with N.J.A.C. 5:30:
The Local Finance Board, Department
of Community
Affairs, State of New Jersey, adopted the
following
requirements,
previously
identified as "technical
accounting
directives"
as codified in
the New Jersey Administrative
Code, as follows:
N.J.A.C.
5:30 - 5.2 - Encumbrance
Accounting:
This directive
requires the development
and
implementation
of accounting systems, which can reflect the commitment
of funds at the point of
commitment.
The Borough of Middlesex is in compliance with this directive.
N.J.A.C.
5:30 -5.6 - Fixed Asset Accounting:
This directive
requires
the development
and
implementation
of accounting
systems
which assigns
values to covered
assets and can track
additions, retirements and transfers of inventoried assets.
It is recommended
that
the
Borough
comply
with
N.J.S.A.
5:30
- 5.6 "Accounting
for
Governmental
Fixed Assets" issued by the Division of Local Government
Services, Department
of Community Affairs, State of New Jersey, in all respects.
It is recommended
the fixed asset inventory be maintained
in an accurate and complete manner.
N.J.A.C.
5:30
-
5.7
- General
Ledger
Accounting
System:
This
directive
requires
the
establishment
and maintenance
of a general ledger for, at least, the Current Fund. The Borough is
in compliance with this directive.
Compliance
with Local Finance Notices
In accordance
with Local Finance Notice No. CFO-10, Uniform Construction
Code, expenditure
records were tested for compliance
with N.J.A.C. 5:23.17(c)2,
and no exceptions were noted for
those items tested.
The Borough
prepared
and filed a corrective
action plan for the year 2013, pursuant
to Local
Finance Notice No. 92-15 issued by the Division of Local Government
Services, Department
of
Community
Affairs, State of New Jersey.
-138 -
RECOMMENDATIONS
We recommend the following:
That all po stings to the Borough's
general
ledger within its financial
information
processing
system be recorded as required.
That sewer billings be processed
in accordance with the Borough's
ordinances on a timely basis.
That the fixed asset inventory
accounting
system be maintained
in an accurate
and complete
manner.
**********
ACKNOWLEDGMENT
During the course of our audit we received the complete cooperation
of the various officials of
the Borough, and the courtesies extended to us were greatly appreciated.
Should
any questions
arise
as to our comments
or recommendations
or should
you
desire
assistance in implementing
our recommendations,
please do not hesitate to contact us.
Very truly yours,
HODULIK
& MORRISON,
P.A.
Andrew G. Hodulik, CPA, RMA
No. 406
-139 -
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