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Executive Summary
The Borough of Riverton's audit report for the fiscal year ended December 31, 2017, contains the independent auditor's report on the regulatory basis financial statements of the Borough. The audit was conducted in accordance with Government Auditing Standards and audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The audit report includes the statements of assets, liabilities, reserves, and fund balances for various funds, including the Current Fund, Trust Fund, General Capital Fund, and Public Assistance Fund.
The audit report also contains a report on internal control over financial reporting and compliance, identifying a significant deficiency regarding bank reconciliations not being completed on a monthly basis. The auditor's report outlines the management's responsibility for the financial statements and the auditor's responsibility to express opinions on these statements. Key financial statements and schedules are included, such as statements of revenues and expenditures, cash balances, taxes receivable, and fund balances. The audit also includes schedules related to Federal and State Grant Funds.
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Document Text
--- Document: 2017 Riverton Borough Audit Report Document ---
BOROUGH OF RIVERTON
County of Burlington
Report of Audit of Financial Statements
For the Year Ended December 31, 2017
BOROUGH OF RIVERTON
COUNTY OF BURLINGTON
TABLE OF CONTENTS
PART I
Independent Auditor's Report
Report on Intemal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
Accordance with Government Auditing Standards
Financial Statements
Current Fund:
Statement of Assets, Liabilities, Reserves and Fund Balance --
- Regulatory Basis
Statement of Operations and Changes in Fund Balance
- Regulatory Basis
Statement of Revenues - Regulatory Basis
Statement of Expenditures - Regulatory Basis
Trust Fund
Statement of Assets, Liabilities, Reserves and Fund Balance --
- Regulatory Basis
General Capital Fund
Statement of Assets, Liabilities, Reserves and Fund Balance --
- Regulatory Basis
Statement of Operations and Changes in Fund Balance --
- Regulatory Basis
Public Assistance Fund
Statement of Assets, Liabilities and Reserves and Fund Balance -
- Regulatory Basis
General Fixed Assets Account Group
Statement of General Fixed Assets Group of Accounts
Notes to Financial Statements
Current Fund
Statement of Cash - Collector/Treasurer
Schedule of Taxes Receivable and Analysis of Property Tax Levy
Schedule of Revenue Accounts Receivable
Schedule of Sewer Rent Receivable
Schedule of Due State of New Jersey -
Senior Citizen and Veterans' Deductions
Statement of 2016 Appropriation Reserves and Reserve for Encumbrances
Schedule of Tax Overpayments
Schedule of Prepaid Taxes
Schedule of Sewer Rent Overpayments
Schedule of Due to State of NJ - UCC Fees
Schedule ofCounty Taxes Payable
Schedule of Local District School Tax Payable
Exhibits
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Part I (Continued):
Federal and State Grant Fund
Schedule ofFederal and State Grants Receivable
Schedule ofReserve for Federal and State Grants - Unappropriated
Schedule ofReserve for Federal and State Grants - Appropriated
Trust Fund
Schedule ofCash - Treasurer
Schedule of Reserve for Animal Control Fund Expenditures
Statement of Due to the State of NJ - Marriage Licenses
Statement of Payroll Deductions Payable
Schedule of Tax Title Lien Payable
Schedule of Reserve for Unemployment Claims
Schedule of Reserve for Flexible Spending Benefits
Schedule of Reserve for Developer's Esçrow Deposits
Schedule of Reserve for Tax Sale Premiums
Schedule of Reserve for Shade Tree Commission
Schedule of Reserve for Environmental Fund
Schedule of Reserve for Veteran Affairs
Schedule of Reserve for Public Defender
Schedule of Reserve for Police Forfeited Property
Schedule of Reserve for Compensated Absences
Schedule of Reserve for POAA Funds
Schedule of Reserve for Outside Police
Schedule of Reserve for Dog Park
Schedule of Reserve for Uniform Fire Safety
General Capital Fund
Schedule ofCash - Treasurer
Analysis of General Capital Cash and Investments
Schedule of Deferred Charges to Future Taxation - Unfunded
Statement of Grants Receivable
Schedule of Bond Anticipation Notes
Schedule of Improvement Authorizations
Statement of Capital Improvement Fund
Statement of Bonds and Notes Authorized But Not Issued
Public Assistance Fund
Schedule ofCash - Treasurer
PART II
Schedule of Findings and Recommendations
Schedule of Findings and Questioned Costs
Schedule of Financial Statement Findings
Schedule of Federal Awards and State Financial Assistance Findings
Summary Schedule of Prior Year Audit Findings
Officials in Office and Surety Bonds
Acknowledgment
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Report of Audit of Financial Statements
For the Year Ended December 31,2017
BOROUGH OF RIVERTON
PART I
INVERSO & STEWART, LLC
Certified Public Accountants
651 Route 73 North, Suite 402
Marlton, New Jersey 08053
(8s6) 983-2244
Fax (856) 983-6674
E-Mail: rinverso@iscpasnj.com
-Member of-
American Institute of CPAs
New Jersey Society of CPAs
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the Borough Council
Borough of Riverton
County of Burlington
Riverton, New Jersey
Report on Íhe Fìnønciøl Statements
I have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory basis of the
various funds of the Borough of Riverton, in the County of Burlington, State of New Jersey, as of December 31,2017 and
2016, and the related statements of operations and changes in fund balance - regulatory basis for the years then ended, and
the related statement of revenues - regulatory basis, statement of expenditures * regulatory basis, and statement of general
fixed assets group of accounts for the year ended December 31,2017 and the related notes to the financial statements,
which collectively comprise the Borough's basic financial statements as listed in the table of contents.
Man ag ement's R esp o ns i b ilify fo r th e Fin an ciø I S tøtements
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 Af[airs, State of
New Jersey. Management is also responsible for the design, implementation and maintenance of intemal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibílity
My responsibility is to express opinions on these fTnancial statements based on my audit. I conducted my audit in
accordance with auditing standards generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Støndards, issued by the Comptroller General of the United States; and
in compliance with audit requirements as prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. Those standards require that I 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 fair presentation ofthe financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the
effectiveness of the entity's internal control. Accordingly, I 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.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions.
2
Basis for Adverse Opìnion on U.S. GenerøIly Accepted Accounting Prìnciples
As described in Note I of the financial statements, the financial statements are prepared by the Borough on the basis of
the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs,
State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United
States of America, to meet the requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting described in Note I
and accounting principles generally accepted in the United States of America, although not rèasonably determinable, are
presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Pfinciples
In my opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on U.S. Generally
Accepted Accounting Principles" paragraph, the financial statements referred to above do not present fairly, in
accordance with accounting principles generally accepted in the United States of America, the financial position of the
Borough of Riverton, in the County of Burlington, State of New Jersey, as of December 31,2017 and2016, or the results
ofits operations and changes in fund balance for the years then ended.
Opinìon on Regulatory Basß of Accountìng
In my opinion, the financial statements referred to previously present fairly, in all material respects, the assets, liabilities,
reserves and fund balance - regulatory basis ofthe various funds ofthe Borough ofRiverton, in the County ofBurlington,
State of New Jersey, as of December 31,2017 and2016, and the results of its operations and changes in fund balance -
regulatory basis of such funds for the years then ended, and the revenues - regulatory basis, expenditures - regulatory
basis of the various funds, and general fixed assets, for the year ended December 31,2017 in conformity with accounting
principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State ofNew Jersey as described in Note l.
Other Informøtion
My audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the
Borough's basic financial statements. The supplemental furancial statements presented for the various funds are
presented for purposes of additional analysis as required by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, and are not a required part of the basic financial statements
The supplementary financial statements presented for the various funds 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.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America. In my
opinion, the information described in the previous paragraph is fairly stated, in all material respects, in relation to the
basic financial statements taken as a whole.
3
Otlrer Reporting Required by Governmenl Audiling Standørcls
In accordance with Government Auditing Standards, I have also issued my report dated May 31, 2018 on my
consideration of the Borough of Riverton's, in the County of Burlington, State of New Jersey, internal control over
financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal 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 Riverton's internal control over financial reporting.
Respectfully submitted,
INVERSO & STEIFART, LLC
Certifi ed Public Accountants
ù'þ/-
Robert P. Inverso
Certified Public Accountant
Registered Municipal Accountant
Marlton, New Jersey
May 31,2018
4
INVERSO & STEWART, LLC
Certified Public Accountants
651 Route 73 North, Suite 402
Marlton, New Jersey 08053
(8s6)983-2244
Fax (856) 983-6674
E-Mail : rinverso@iscpasnj.com
-Member of-
American Institute of CPAs
New Jersey Society of CPAs
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
The Honorable Mayor and
Members of the Borough Council
Borough of Riverton
County of Burlington
Riverton, New Jersey
I have audited, in accordance with the auditing standards generally accepted in the United States of America: the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States; and the audit requirements as prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey, the financial statements prepared on a regulatory basis of accounting
prescribed by the Division of Local Government Services, Department of Communþ Affairs, State of New Jersey of the
Borough of Riverton, in the County of Burlington, State of New Jersey, as of and for the year ended December 31, 2017 ,
and the related notes to the financial statements, which collectively comprise the Borough's basic financial statements,
and have issued my report thereon dated Mray 31,2018. That report indicated that the Borough of Riverton's financial
statements were not prepared in accordance with accounting principles generally accepted in the United States of
America, but were prepared on a regulatory basis of accormting prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
Internøl Control Over Finøncíøl Reporting
In planning and performing my audit of the financial statements, I considered the Borough of Riverton's internal control
over ñnancial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose ofexpressing my opinions on the financial statements, but not for the purpose ofexpressing an opinion on the
effectiveness of the Borough's internal control. Accordingly, I do not express an opinion on the effectiveness of the
Borough of Riverton'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 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.
My consideration of intemal control was for the limited purpose described in the first paragraph of this section and was
not designed to identi$ all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during my audit I did not identiff any deficiencies in internal control that I consider to be
material weaknesses. However, material weaknesses may exist that have not been identified. I did however identi$ the
following deficiency in internal control, described in the accompanying Schedule of Findings qnd Recommendations thaf
I consider to be a significant deficiency which is Findings no;2017-1.
Ã
Complìance snd Other Matters
As part of obtaining reasonable assurance about whether the Borough of Riverton's financial statements are free from
material misstatement, I 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 my audit and,
accordingly, I do not express such an opinion. The results of my tests disclosed an instance of noncompliance or other
matters that are required to be reported under Governrnent Auditing Standards or audit requirements as prescribed by the
Division of Local Governments Services, Department of Community Affairs, State of New Jersey and which is described
in the accompanying Schedule of Findings and Recommendations as Finding no.: 2017 -l .
The Borough of Riverton's Response to Fínd¡ngs
The Borough of Riverton's response to the finding identified in my report is described in the accompanying Schedule of
Findings and Recommendations. The Borough's response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, I express no opinion on it.
Parpose of thß Report
The purpose of this report is solely to describe the scope of my testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the Borough's intemal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards and audit
requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey in considering the Borough's internal control and compliance. Accordingly, this communication is not
suitable for any cither purpose.
Respectfully submitted,
INVERSO & STEWART, LLC
Certified Public Accountants
Ø l\^4-
Robert P. Inverso
Certified Public Accountant
Registered Municipal Accountant
Marlton, New Jersey
May 31, 2018
6
EXHIBIT A
BOROUGH OF RIVERTON
Gurrent Fund
Statement of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis
For the Years Ended December 31, 2017 and 201 6
ASSETS
Regular Fund:
Cash - Treasurer
Cash - Collector's Change Fund
lnvestments - Bond Anticipation Notes
Total
Receivables and OtherAssets with Full Reserves:
Delinquent Property Taxes Receivable
Revenue Accounts Receivable
Sewer Rent Receivable
Special Charges - Demolition Charges
Due from Animal Control Fund
Due from ïrust Other Fund
Due from Capital Fund
Total
Total Regular Fund
Federal and State Grant Fund:
Cash - Treasurer
Federal and State Grants Receivable
Due from Current Fund
Due from Capital Fund
Total Federal and State Grant Fund
Total
Reference
A-5
A-6
A-7
2017
$ 3,027,818.06
120.00
228,750.00
3,256,688.06
142,792.75
5,943.38
26,973.88
2,064.67
37,519.05
52.71
215,346.44
3,472,034.50
1,222.20
9,248.00
14,464.55
23,600.00
48,534.75
2016
s 2,238,794.42
.120.00
352,201.68
2 591 116.10
'157,964.17
15,058.64
45,593.87
44,400.00
2,058.91
31,252.54
296,328.13
2, 887,444.23
6,031.11
279,248.00
'14,464.55
23,600.00
323,343.66
$ 3,210,787.89
(Continued)
A-4
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B
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A-4
6
A-1
A
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_$__3,5?9,59e2q_
7
EXHIBIT A
BOROUGH OF RIVERTON
Current Fund
Statement of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis
For the Years Ended December 31, 2017 and 201 6
Reference
20'17
2't6,942.39
57,198.78
23,850.30
398,471.30
620.63
6,623.14
14,464.55
30,000.00
20,248.55
851.93
1.733.31
201 6
158,859.77
37,211.29
26,951.62
46,022.01
8,807.19
14,464.55
30,000.00
41,805.86
296.59
269.64
750.00
1,642,026.41
LIABILITIES. RESERVES AND FUND BALANCE
Regular Fund:
Liabilities:
Appropriation Reserves
Reserve for Encumbrances
Tax Overpayments
Prepaid Taxes
Sewer Rent Overpayments
Prepaid Sewer
Due from Federal and State Grant Fund
Due to Trust - Other Funds
Due to Capital Fund
Due to State of NJ - Construction Code Fees
Due County for Added Taxes
Due to State of N.J. for Senior Citizen and
Veteran Deductions
Local District School Tax Payable
Total Liabilities
Reserve for Receivables and Other Assets
Fund Balance
Total Regular Fund
Federal and State Grant Fund:
Encumbrances Payable
Unappropriated Reserves
Appropriated Reserves
Total Federal and State Grant Fund
Total
A-3
A-3
A-10
A-11
A-12
A
B
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A-13
A-14
A-8
A-15
A-18
A-17
A-18
$
$
A
A-1
767
750.00
607.45
2,539,362.33
215,346.44
717,325.73
2,007,464.93
296,328.1 3
583,651 .1 7
3,472,034.50
2,887,444.23
5,420.40
43,114.35
2,139.83
3,194.69
31 8,009.1 4
48,534.75
323,343.66
$ 3,520,569.25 $ 3,210,787.89
The accompanying Notes to Financial Statements are an integral part of this statement.
8
EXHIBIT 4.1
BOROUGH OF RIVERTON
Gurrent Fund
Statement of Operations and Changes in Fund Balance - Regulatory Basis
For the Years Ended Decembü 31,2017 and 2016
Revenue and Other lncome Realized:
Fund Balance Utilized
Miscellaneous Revenue Anticipated
Receipts from Delinquent Taxes
Receipts from Current Taxes
Nonbudget Revenues
Other Credits to lncome:
Unexpended Prior Year Appropriat¡on Reserves and Encumbrances Payable
Prior year overpayments cancelled
Prior year receivable collected
Total Revenue and Other lncome Real¡zed
Expend¡tures
Operations Within "CAPS":
Salaries and Wages
Other Expenses
Deferred Charges and Statutory Expenditures Within "CAPS"
Operations Excluded from "CAPS":
Other Expenses
Capital lmprovements
Municipal Debt Service Excluded from "CAPS"
Deferred Charges Excluded'CAPS'
Local D¡str¡ct School Tax
County Taxes
Due County for Added Taxes
Prior Year Overpayments
lnterfund Loans Made
Total
Statutory Excess in Fund Balance
Fund Balance January 1
Total
Decreased by Utilization as Anticipated Revenue
Balance December 31
2017
$ 150,000.00
1,004,528.39
154,092.24
8,280,944.02
21,989.22
2016
$ 150,000.00
946,258.1 5
113,542.49
7,928,079.59
37,470.15
45,743.81
2,723.38
44,400.00
54,211.38
9,704,421.06
9,229,561.76
't,001,909.57
1,599,256.43
175,017.00
22,337.73
17,803.00
254,882.61
5,232,745.00
1,113,451 .85
1,733.31
0.00
972,560.00
1,482,090.00
205,805.00
127,819.02
12,250.O0
255,332.43
4,981,583.00
1,073,361 .09
269.64
9,420,746.50
9,111,070.18
1 18,491 .58
283,674.56
583,651 .17
615 159.59
867,325.73
150,000.00
733,651 .1 7
150,000.00
s 717,325.73
s
583,651.17
The accompany¡ng Notes to Financial Statements are an integral part of this statement.
o
EXHIBIT A.2
BOROUGH OF RIVERTON
Current Fund
Statement of Revenues - Regulatory Basis
For the Year Ended Decembet 3'1,20'17
BUDGET
SPECIAL
NJS 40A:4-87
EXCESS
(DEFICIT)
$
150,000.00
$
REALIZED
$
150,000.00 $
Fund Balance Anticipated
Miscellaneous Revenues:
Licenses - Other
Fees and Permits - Other
Fines and Costs
Municipal Court
lnterest and Costs on Taxes
lnterest on lnvestments and Deposits
Cell Tower Rental Fees
Sewer Rent Fees
Payments in Lieu of Taxes
Comcast Fees
Park Fees
Energy Receipts Taxes
Consolidated Municipal Property Relief Act
Uniform Construction Code Fees
Uniform Fire Safety Act
Miscellaneous Revenues Offset with Appropriat¡ons:
Drunk Driving Enforcement Fund
Clean Communities
Body Armor
Total
Receipts from Delinquent Taxes
Amount to be Raised by Taxes for Support of
Municipal Budget - Local Tax for Mun¡cipal Purposes
Budget Totals
Nonbudget Revenues
Total
97,000.00
29,500.00
1,000.00
36,000.00
429,500.00
9,000.00
10,500.00
2,500.00
226,325.00
4,252.00
25,500.00
5,000.00
1,350.00
1,200.00
664.75
1,548.75
981 .1 I
112,687.89
44,009.38
6,669.42
34,030.77
468,076.23
23,291.60
11,303,87
3,550.00
226,325.00
4,252.00
33,787.O7
13,793.43
1,264.00
8,150.00
729.09
5,252.53
7.356.11
(86.00)
6,950.00
15,687.89
14,509.38
5,669.42
(1,96e.23)
38,576.23
14,29'1.60
803.87
1,050.00
8,287.07
8,793.43
64.34
3,703.78
6,374.92
881,821.69
130,000.00
2,068,684.69
10,143.04
1,004,528.39
154,092.24
2,102,387.55
112,563.66
24,092.24
33,702.86
3,230,506.38
10,143.04
3,41 1 ,008.1 I
21,989.22
$ 3,230,506.38 $ 10,143.04
$ 3,432 .997.40
$
170,358.76
(Continued)
10
EXHIBIT A.2
BOROUGH OF RIVERTON
Gurrent Fund
Statemênt of Revenues - Regulatory Basis
For the Year Ended December 31,2017
Analvsis of Realized Revenue
Allocat¡on of Current Tax Collections:
Revenue from Collections
Allocated to School and County Taxes
Balance for Support of Municipal Budget Appropriations
Add Appropriation - Reserve for Uncollected Taxes
Amount for Support of Municipal Budget Appropriations
Receipts from Delinquent Taxes:
Delinquent Tax Collections
Licenses - Other:
Registrar of Vital Statistics
Other
Total
Fees and Permits - Other:
Street Opening Permits
Vacant Property Registration Fees
Total
Miscellaneous Revenue Not Anticipated:
Site Plans
Application Fees
Recycling
lnsurance Refund
Tire Removal
Towing
Fence/Sign Permits
Cat Licenses
Admin Fee - SC & Vet
Police Reports
Sewer Penalties
Other Refunds
County Reimbursement
Miscellaneous
$ 8,280,944.02
6,347,930.16
1 ,933,013.86
169 373.69
s 2,102,387.55
$
154,092.24
$
1,264.00
$
1,264.00
$
900.00
7,250.00
$
8,150.00
$
1,075.00
450.00
659.00
2,783.33
105.00
360.00
395.00
83.00
585.00
608.40
9,074.52
1,006.83
2,525.00
2,279.14
The accompanying Notes to Financial Statements are an integral part of this statement.
Total
11
$
21,989.22
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures - Regulatory Basis
For the Year Ended Decembêr 31 , 201 7
3,000.00
61,100.00
25,600.00
52,767.0O
4,150.00
27,800.00
14,000.00
22,869.00
3,500.00
10,930.00
2,875.0O
33,000.00
5,000.00
3,500.00
13,695.00
11,425.00
3,000.00
63,450.00
25,600.00
54,798.00
4,150.00
27,800.00
14,OOO.OO
23,749.57
3,500.00
1 1,352.00
2,875.OO
25,000.00
s,ooo.oo
3,500.00
14,225.00
11,425.00
767.75
60,999.92
16,270.33
52,029.06
3,229.98
27,800.00
13,694.00
22,86A.74
2,173.58
10,930.60
2,175.O0
14,614.46
3,113.75
13,694.99
11,206.16
2,150.00
173.60
2,450.OA
7.179.67
2,76A.94
920.O2
306.00
880.83
1,326.42
421.40
526.40
10,385.54
I,886.25
s,soo.oo
530.01
201.84
EXHIBIT A-3
Unexpended
Balance
Canceled
AÞproÞriations
Budget After
Budoet
Mod¡fication
Paid or
Charoed
Expended
Encumbered
Reserved
GENERAL APPROPRIATIONS:
Operations Within "CAPS":
General Government
Mayor and Council
Other Expenses
Borough Clerk
Salaries and Wages
Other Expenses
Financ¡al Administration:
Salaries and Wages
Other Expenses
Audit Services
Other Expenses
Computerized Data Process¡ng
Other Expenses
Collection of Taxes
Salar¡es and Wages
Other Expenses
Assessment of Taxes
Salaries and Wages
Other Expenses
Legal Services & Costs
Other Expenses
Engineer
Other Expenses
Economic Development
Other Expenses
Land Use Administration:
Planning Board:
Salaries and Wages
Other Expenses
$
$
$
$
45.10
$ 2,187.15 $
r\)
17.00
(Continued)
$
96,636.00
100,477.O0
425,735.0O
498,562.00
50,300.00
750.00
25,000.00
5,279.OO
1,000.00
1 83,879.00
47.1 00.00
45,000.00
I 16,500.00
26,000.00
31,000.00
4,684.00
150.00
97,866.00
103,477.OO
425,735.0O
506,604.00
50,300.00
750.00
25,000.00
5,484.00
1,600.00
193,879.00
47.100.OO
45,000.00
I 18,100.00
26,000.00
31,000.00
4,884.00
150.00
Paid or
Charqed
$
96,730.00
103,465.00
392,656.97
48A,424.73
37.195.69
168.48
20,872.20
5,27A.69
1,418.40
185,601 .57
38,879.04
37 ,461.94
99,961.27
23,O50.41
30,623.89
4,664.87
1,516.42
2,348.0O
5,924.43
5,730.00
16,131.67
1,804.43
284.79
$
1,136.00
12.0O
33,078.03
18,179.27
1 1,587.89
581.52
1,779.80
205.31
181.60
8,277.43
2,296.53
1,808.06
2,007.06
1,145.16
91.32
219.13
150.00
EXHIBIT A-3
Unexpended
Balance
Canceled
ü
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures - Regulatory Basis
For the Year Ended December 31, 201 7
AÞoropriations
Budget After
Budoet
Modification
Expended
Encumbered
Reserved
Operations Within "CAPS" (Continued)
General Government (Continued)
lnsurance:
Liability lnsurance
Worker Compensat¡on
Employees Group lnsurance
Publ¡c Sâfety:
Pol¡ce:
Salaries and Wages
Other Expenses
Offìce of Emergency Management
Other Expenses
Aid to Volunteer Ambulance Squad
Other Expenses
Fire Department
Other Expenses
Fire Official
Salar¡es and Wages
Other Expenses
Public Works:
Road Repairs and Maintenance
Salaries and Wages
Other Expenses
Shade Tree Commission
Other Expenses
Solid Waste Collect¡on
Other Expenses
Public Bu¡ldings and Grounds
Other Expenses
Vehicle Maintenance
Other Expenses
Registrar of Vital Statistics:
Salaries and Wages
Other Expenses
$
$
(/)
(Cont¡nued)
5,000.00
11,250.00
600.00
82,000.00
45,000.00
15,000.00
3,250.00
s5,000.00
90,000.00
1 17,000.00
25,000.00
100,000.00
88,484.00
600.00
28,869.00
850.00
2.601.166.00
973,234.O0
1,627,932.00
$
s,000.00 $
Paid or
Charoed
3,887.00
7,A44.35
244.91
64,914.O4
40,368.16
15,986.57
3,603.96
38,215.40
90,531.61
95,795.25
21,534.59
92,691.44
2,197.99
569.46
29,000.66
941.80
2,330,352.66
964,O25.44
$
1 ,1 13.00
$
EXHIBIT A.3
Unexpended
Balance
Canceled
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures - Regulatory Basis
For the Year Ended December 31, 201 7
Aopropr¡at¡ons
Budget After
Budqet
Modification
Expended
Encumbered
Reserved
Operations With¡n "CAPS" (Continued)
General Government (Continued)
Animal Control
Other Expenses
$
Parks and Recreation:
Recreation Services:
Other Expenses
Celebration of Public Events:
Other Expenses
Contribution to Senior Citizens Club:
Other Expenses
Util¡ties:
Electricity
Streêt Lighting
Telephone
Water
F¡re Hydrant Service
Sêwerage Processing:
Salaries and Wages
Other Expenses
Gasoline
Landfill and Solid Waste Disposal Costs - Landfill Fees
Municipal Court:
Other Expenses
Public Defender (P.L. 1997, c 256)
Salaries and Wages
Construction Code Office:
Salaries and Wages
Other Expenses
Total Operat¡ons - With¡n "CÁPS"
Detail:
Salaries and Wages
Other Expenses
$
À
1 1,250.00
600_00
77,000.00
42,000.00
16,200.00
3,620.00
41,700.O0
93,500.00
1 17,000.00
23,500.00
106,000.00
55,608.43
600.00
29,984.00
250.00
2,601,166.00
1,001,909.57
1.599.256.43
100.91
351 09
3,304.74
10,666.58
7102.02
57,198.78
12,085.96
1,631 .84
213.43
16.04
3,484.60
2,968.39
10,538.17
1,965.41
6,206.54
53,410.44
30.54
983.34
308.20
213.614.56
37,884.13
175,730.43
1.366.327.22
57,198.78
(Continued)
$
50,020.00
67,845.00
57,152.OO
175.O17.OO
2,776,183.00
9,000.00
981 .1 I
664.75
1.54A.75
12.194.69
12.194.69
17,803.00
17,803.00
50,020.00
67,845.00
57 152.OO
175,017.OO
2,776,183.O0
9,000.00
981 .1 I
64.34
4,368.53
1,548.75
6,374.92
22.337.73
22.337.73
17,803.00
17 803.00
Paid or
Charoed
$
46,692.84
67,844.64
57,1 51 .69
171.689.17
2,502,041.83
9,000.00
981.19
64.34
4,368.53
1,548.75
6,374.92
22,337.73
22.337.73
17,803.00
17,803.00
$
57,19A.78
3,327.16
0.36
0.31
3,327.43
216,942.39
EXHIBIT A-3
Unexpended
Balance
Canceled
$
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures - Regulatory Basis
For the Year Ended Decêmber 3,1 , 201 7
Aooropriat¡ons
Budget After
Budoet
ModifÌcat¡on
Expended
Encumbered
Reserved
Municipal - Withìn "CAPS":
STATUTORY EXPENDITURES:
Contribut¡on to:
Social Security System (O.A.S.l.)
Police & Fireman's Retirement System
Public Employees' Retirement System
Total Deferred Charges and Statutory Expenditures -
Munic¡pal Within "CÁPS'
Total Genenl Appropríations -
For Municipal Purposes Within "CAPS"
Operations Excluded from "CAPS":
Aid To Library (N.J.S.4.40:54-35)
Public and Private Programs Offset By Revenues:
Body Armor Grant
Alcohol Education & Rehab¡litation
Drunk Driving Enforcement Grant
Green Clean Communities
Clêan Communities Grant
Total Operat¡ons - Excluded From "CAPS"
Dêtail:
Other Expenses
Capital Improvements - Excluded From "CAPS"
Capital Improvement Fund
Total Capital lmprovements - Excluded From "CAPS"
$
$
(¡
(Continued)
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures - Regulatory Bas¡s
For the Year Ended December 3l , 20,1 7
EXHIBIT A-3
Unexpended
Balence
Canceled
$
ApÞroÞriations
BudgetAfter
Budoet
Modification
Paid or
Charqed
$
238,451.68
16,430.93
254,882.61
295.023.34
2,797,065.17
169,373.69
Expended
Ëncumbered
Reserved
Munic¡pal Deht Service - Excluded From,,CA4S"
Payment of BAN Princlpal
lnterest on Notes
Toâl Munic¡pal Debt Serv¡ce - Excluded From "CAqS"
Total General Appropriations for Municipat
Purposes Excluded From "CAqS"
Subtotal General Appropr¡at¡ons
Reserve for Uncollected Taxes
TOTAL G E N ERAL AP PRO P RIATIONS
Original Budget
Amended by NJS 40A:4-87
$
238,452.OO
16,500.00
254,952.00
284,949.69
3,061,132.69
169,37s.69
$ 3,230,506.38
238,452.00
16,500.00
254,952.0O
295,O92.73
3,O71,275.73
169,373.69
$
$
$
o.32
69.07
69.39
69.39
O)
57,198.78
216,942.39
$ 57,198.78
69.39
$ 216,942.39 $
69.39
$ 3,230,506.38
10,143.04
$ 3.240.649.42
Expended - Pa¡d or Chãrged:
Reduction of lnvestment in Bond
Anticipation Notê
Reserve for State Grants
Reserve for Uncollected Taxes
Due to General Capital Fund
Disbursed
Total
$ 2,966,438.86
The accompany¡ng Notes to Financial Statements are an integral part of this statement.
$ 3,240,649.42 $ 2,966,438.86
$ 123,451 .68
13,337.73
169,373.69
1 15,000.00
2,545,275.76
EXHIBIT B
BOROUGH OF RIVERTON
Trust Fund
Statement of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis
For the Years Ended December 31,2017 and 2016
Reference
2017
2016
$ 2,337.03 $
2,319.53
ASSETS
Animal Control Fund
Cash - Treasurer
Other Funds:
Cash - Treasurer
Due from Current Fund
Total Other Funds
Total
LIABILITIES AND RESERVES
Dog License Fund:
Prepaid Licenses
Due to Current Fund
Due to State
Reserve for Dog Fund Expenditures
Total Dog License Fund
Other Funds:
Due State of New Jersey:
Marriage License Fees
Due to Current Fund
Payroll Deductions Payable
Tax Title Lien Redemption Payable
Reserve for Unemployment Compensation Trust
Reserve for Flexible Spending Account
Reserve for Developers Escrow Fund
Reserve for Tax Sale Premiums
Reserve for Shade Tree Commission
Reserve for Environmental Fund
Reserve for Veterans Affairs Fund
Reserve for Public Defender
Reserve for Police Forfeited Property
Reserve for Compensated Absences
Reserve for POAA Funds
Reserve for Police Side Jobs
Reserve for Dog Park
Reserve for Uniform Fire Safety
Total Other Funds
B-1
B-1
A
208,291.54
30,000.00
167,518.25
30,000.00
238,291.54
197.518.25
$ 240,628.57
2,064.67
272.36
$ 199,837.78
$
2,058.91
1.20
259.42
75.00
31,252.54
2,655.00
6,564.31
12,170.56
164.38
66,228.85
29,340.54
8,988.73
5,1 6r .38
1,115.12
216.13
3,240.59
30,000.00
345.12
$
A
B-2
2,337.03
2,319.53
B-3
A
B-4
B-5
B-6
B-7
B-8
B-9
B-1 0
B-l 1
B-12
B-13
B-14
B-1 5
B-1 6
B-17
B-1 I
B-1 I
100.00
37,519.05
7,987.05
14,175.91
138.88
71,988.03
43,025.12
3,763.73
5,1 61 .38
1,115.12
48.59
3,248.72
30,000.00
349.96
16,020.00
150.00
3,500.00
238,291.54
197,518.25
$ 240,628.57 $ 199,837.78
The accompanying Notes to Financial Statements are an integral part of this statement.
Total
17
EXHIBIT C
BOROUGH OF RIVERTON
General Gapital Fund
Statement of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis
For the Years Ended December 31,2017 and 2016
ASSETS
Cash
Due from Current Fund
Deferred Charges to Future Taxation
Unfunded
State Grants Receivable
Total
Reference
c-2, c-3
c-7
c-7
c-8
c-1
2,105,845.32
108,250.00
2,006,050.00
475,000,00
A
2017
2016
$ 426,490.44 $
27,942.95
20,248.55
41,80s.86
c-4
c-5
$ 2,660,834.31 $ 2,s50,798.81
LIABILITIES, RESERVES
AND FUND BALANCE
Bond Anticipation Notes Payable
Due to Cunent Fund
Due to Federal and State Grant Fund
lmprovement Authorizations:
Funded
Unfunded
Capital lmprovement Fund
Reserye for Debt
Fund Balance
Total
c-6
A
A
$ 1,959,422.00
52.71
23,600.00
29,151.13
618,292.83
256.76
11,580.00
18,478.88
$ 1,859,626.68
23,600.00
214,254.91
434,581.58
256.76
18,478.88
$ 2,660,834.31
$2.
798.81
The accompanying Notes to Financial Statements are an integral part of this statement.
1B
EXHIBIT C-1
BOROUGH OF RIVERTON
General Capital Fund
Statement of Operations and Ghanges in Fund Balance - Regulatory Basis
For the Year Ended December 31,20'17
Balance December 31,2017 and 2016
$
18,478.88
The accompanying Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT D
BOROUGH OF RIVERTON
PUBLIC ASSISTANCE FUND
Statement of Assets, Liabilities, Reserve and Fund Balance - Regulatory Basis
For the Years Ended December 31,2017 and 2016
ASSETS
Cash
Total
LIABILITIES AND RESERVES
Reserve for Public Assistance
Reference
D-1
2017
2016
$
733.82 $
731.96
$
733.82 $
731.96
$
733.82 $
731.96
The accompanying Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT E
BOROUGH OF RIVERTON
AGCOUNT GROUP
Statement of General Fixed Assets Group of Accounts
For the Year Ended December 31, 2017
General Fixed Assets:
Land
Buildings
Land and Building lmprovements
Equipment
Vehicles
Total General Fixed Assets
Total lnvestment in General
Fixed Assets
$ 5.325.912.54 $
Balance
December 31,
2016
$
147,405.00
1,580,688.90
637,829.54
598,995.96
2,360,993.'14
Additions
Retirements
$
Balance
December 31,
2017
$
147,405.00
1,580,688.90
637,829.54
598,995.96
2,360,993.14
$
$
$ 5,325,912.54
$ 5,325,912.54 $
-S-----------:- -$--5ëgÉ12l1-
The accompanying Notes to Financial Statements are an ¡ntegral part of this statement.
21
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Financial Reporting Entity - The Borough of Riverton (hereafter referred to as the "Borough") is
located in the westem portion of the County of Burlington, State of New Jersey. The present population according to the
2010 census is2,629.
The Borough was incorporated in 1893 and is governed by aMayorlCouncil form of government which consists of
seven members elected at large by the voters. The Mayor is elected by the voters to a four-year term and acts as the
Chief Executive Offrcer of the Borough. Each of the six members of the Borough Council is elected to serve three year
terms that are staggered, The legislative powers rest with the Borough Council. The Borough Clerk, Borough Treasurer
and Borough Chief Financial Officer are appointed by the Borough Council and monitor the daily administrative and
financial responsibilities, including but not limited to, staffing and personnel issues and budget preparation and
implementation.
Component Units - The Borough of Riverton had no component units as defined by Governrnental Accounting
Standards Board Statement No. 14.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the Borough
contain all funds and account groups in accordance with the "Requirements of Audit" as promulgated by the State of
New Jersey, Department of Community Affairs, Division of Local Government Services. The principles and practices
established by the "Requirements" are designed primarily for determining compliance with legal provisions and
budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds.
Generally, the financial statements are presented using the flow of current financial resources measurement focus and
modified accrual basis of accounting with minor exceptions as mandated by these "Requirements". In addition, the
prescribed accounting principles previously referred to differ in certain respects from accounting principles generally
accepted in the United States of America applicable to local government units. The more significant differences are
explained in this Note.
In accordance with the "Requirements", the Borough accounts for its financial transactions through the use of separate
funds which are described as follows,
Current Fund - The Current Fund accounts for resources and expenditures for governmental operations of
a general nature, including Federal and State grant funds.
Trust Funds - The various Trust Frmds account for receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created.
General Capital Fund - The General Capital Fund accounts for receipt and disbursement of funds for the
acquisition ofgeneral capital facilities, other than those acquired in the Current Fund.
Budgets and Budgetary Accounting - The Borough must adopt an annual budget for its current fund in accordance
with N.J.S.A.40A:4 et seq. N.J.S.A. 40A:4-5 requires the governing body to introduce and approve the annual
municipal budget no later than February l0 of each year. At introduction, the governing body shall fix the time and
place for a public hearing on the budget and must advertise the time and place at least ten days prior to the hearing in a
newspaper published and circulating in the Borough. The public hearing must not be held less than twenty-eight days
after the date the budget was introduced. After the hearing has been held, the goveming body may, by majorþ vote,
adopt the budget or may amend the budget in accordance with N.J.S.A. 40A:4-9. Amendments to the adopted budgets, if
aîy, are detailed in the statements of revenues and expenditures.
An extension of the statutory dates for introduction, approval and adoption of the municipal budget may be granted by
the Director of the Division of Local Govemment Services, with the permission of the Local Finance Board.
Budgets are adopted on the same basis of accounting utilized for the preparation of the Borough's financial statements.
22
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash, Cash Equivalents and Investments - Cash and cash equivalents, for all funds, include petfy cash, change funds,
cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of the date of
maturþ. Investments are stated at cost. Consequently, unrealized gain or loss on investments has not been recorded in
accordance with Governmental Accounting Standards Board Statement No. 31. New Jersey municipal units are required
by N,J.S.A, 40A:5-14 to deposit public funds in a bank or trust company having its place of business in the State of New
Jersey and organized under the laws of the United States or of the State of New Jersey or in the New Jersey Cash
Management Fund. N.J.S.A. 404:5-15.1 provides a list of investments which may be purchased by New Jersey
municipal units. In addition, other State statutes permit investments in obligations issued by local utilities and other state
agencies.
N.J.S.A. 17:9-41 et seq. establishes the requirements for the security of deposits of governrnental units. The statute
requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in
accordance with the Governmental Unit Deposit Protection Act ("GUDPA"), a multiple financial institutional collateral
pool, which was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking
institution in New Jersey. Public depositories include State or federally chartered banks, savings banks or associations
located in or having a branch office in the State of New Jersey, the deposits of which are federally insured. All public
depositories must pledge collateral, having a market value at least equal to five percent of the average daily balance of
collected public funds, to secure the deposits of governmental units. If a public depository fails, the collateral it has
pledged, plus the collateral of all other public depositories, is available to pay the amount of their deposits to the
governmental units.
The cash management plan adopted by the Borough requires it to deposit funds in public depositories protected from loss
under the provisions of the Act.
Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded by all funds
affected by such transactions in the period in which the transaction is executed. Interfund receivables in the Current
Fund are recorded with offsetting reserves which are created by charges to operations. Income is recognized in the year
the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves.
Inventories of Supplies - The costs of inventories of supplies for all funds are recorded as expenditures at the time
individual items are purchased. The costs of inventories are not included on the various statements of assets, liabilities,
reserves and fund balances.
General Fixed Assets - Accounting for Governmental Fixed Assets, as required by N.J.A.C. 5:30-5.6, differs in certain
respects from accounting principles generally accepted in the United States of America. In accordance with the
regulations, all local units, including municipalities, must maintain a general fixed assets reporting system that
establishes and maintains a physical inventory of nonexpendable, tangible property as defined and limited by the U.S.
Office of Management and Budget Circular A-87 (Attachment B, Section 19), except that the useful life of such property
is at least five years, The Borough has adopted a capitalization threshold of $5,000 the maximum amount allowed by the
Circular.
Generally, assets are valued athistorical cost; however, assets acquired priorto December 31, 1985 are valued atactual
historical cost or estimated historical cost, Donated general fixed assets are recorded at their estimated fair market value
on the acquisition date. Donated general fîxed assets are recorded at their estimated fair market value on the acquisition
date. Interest costs relative to the acquisition of general fixed assets are recorded as expenditures when paid. Public
domain ("infrastructure") general fixed assets consisting of certain improvements, such as roads, bridges, curbs and
gutters, streets and sidewalks and drainage systems are not capitalized. Expenditures for construction in progress are
recorded in the Capital Funds until such time as the construction is completed and put into operation. The Borough is
required to maintain a subsidiary ledger detailing fixed assets records to control additions, retirements and transfers of
fixed assets. In addition, a Statement of General Fixed Assets, reflecting the activity for the year, must be included in the
Borough's basic financial statements.
23
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE T. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The regulations require that general fixed assets, whether constructed or acquired through purchase, grant or gift be
included in the aforementioned inventory. In addition, property management standards must be maintained that includes
accurate records indicating asset description, source, ownership, acquisition cost and date, the percentage of Federal
participation (ifany), and the location, use, and condition ofthe asset. Periodically, physical inventories must be taken
and reconciled with these records. Lastly, all fixed assets must be adequately controlled to safeguard against loss,
damage or theft. No depreciation of general fixed assets is recorded.
Foreclosed Property - Foreclosed property is recorded in the Current Fund at the assessed valuation when such property
was acquired and is fully reserved. Ordinarily it is the intention of the municipality to resell foreclosed property in order
to recover all or a portion of the delinquent taxes or assessments and to return the property to a taxpaying basis. For this
reason the value of foreclosed property has not been included in the General Fixed Assets Account Group. If such
property is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group.
Deferred Charges - The recognition of certain expenditures is deferred to future periods. These expenditures, or
deferred charges, are generally overexpenditures of legally adopted budget appropriations or emergency appropriations
made in accordance with N.J.S.A . 40A:4-46 et seq. Deferred charges are subsequently raised as items of appropriation
in budgets ofsucceeding years.
Liens Sold for Other Governmental Units - Liens sold on behalf of other governmental units are not recorded on the
records ofthe Borough until such liens are collected. Upon their collection, such liens are recorded as a liability due to
the governmental unit net of the costs of the initial sale. The related costs of sale are recognized as revenue when
received.
Fund Balance - Fund Balance included in the Current Fund represent amounts available for anticipation as revenue in
future years' budgets, with certain restrictions.
Appropriation Reserves - Appropriation reserves covering unexpended appropriation balances are automatically
created at year end and recorded as liabilities, except for amounts which may be canceled 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 during the preceding fiscal year. Lapsed appropriation reserves are recorded as
income.
Compensated Absences and Postemployment Benefits - Compensated absences for vacation and sick leave are
recorded and provided for in the annual budget in the year in which they are paid, on a pay-as-you-go basis. Likewise,
no accrual is made for postemployment benefits, if any, which are also funded on a pay-as-you-go basis.
Revenues - Revenues are recorded when received in cash except for certain amounts which are due from other
governmental units. Revenue from Federal and State grants are realized when anticipated as such in the Borough's
budget. Receivables for properly taxes are recorded with offsetting reserves on the statement of assets, liabilities
reserves and firnd balance ofthe Borough's Current Fund; accordingly, such amounts are not recorded as revenue until
collected. Other amounts that are due the Borough which are susceptible to accrual are also recorded as receivables with
offsetting reserves and recorded as revenue when received.
Property Tax Revenues - Property tax revenues are collected in quarterly installments due February 1, May l, August
l, and November I . The amount of tax levied includes not only the amount required in support of the Borough's annual
budget, but also the amounts required in support of the budgets of the Riverton Borough School District and the County
of Burlington. Unpaid property taxes are subject to tax sale in accordance with the statutes.
School Taxes - The Borough is responsible for levying, collecting and remitting school taxes for the Riverton Borough
School District. Operations is charged for the full amount required to be raised from taxation to operate the local school
district for the period from July I to June 30, increased by the amount deferred at December 31,2016 and decreased by
the amount deferred at December 31, 2017 .
24
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
County Taxes - The Borough is responsible for levying, collecting and remitting county taxes for the County of
Burlington. Operations is charged for the amount due the County for the year, based upon the ratables required to be
certifîed to the County Board ofTaxation by January l0 ofthe current year. In addition, operations is charged for the
County share of Added and Omitted Taxes certified to the County Board of Taxation by October l0 of the current year
and due to be paid to the County by February 15 of the following year.
Reserve for Uncollected Taxes - The inclusion of the "Reserve for Uncollected Taxes" appropriation in the Borough's
annual budget protects the Borough from taxes not paid currently. The Reserve, the minimum amount of which is
determined on the percentage of collections experienced in the immediate precedingyear, with certain exceptions, is
required to provide assurance that cash collected in the current year will provide sufficient cash flow to meet expected
obligations.
Expenditures - Expenditures are recorded on the "budgetary" basis of accounting. Generally, expenditures are recorded
when paid. However, for charges to amounts appropriated for "other expenses", an amount is encumbered through the
issuance of a numerically controlled purchase order or when a contract is executed in accordance with N.J.A'C . 5:30'5.2.
When encumbered charges are paid, the amount encumbered is simultaneously liquidated in its original amount.
Outstanding encumbrances are offset by an account entitled "Reserve for Encumbrances". The reserve is classihed as a
cash liability under New Jersey municipal accounting. At December 31, this reserve represents the portion of
appropriation reserves that has been encumbered and is subject to the same statutory provisions as appropriation
reserves.
Expenditures - Appropriations for principal payments on outstanding general capital bonds and notes are provided on
the cash basis; interest on general capital indebtedness is also on the cash basis.
Long-Term Debt - Long-Term Debt, relative to the acquisition of capital assets, is recorded as a liability in the General
Capñal fund. Where - i-p.ou.-ent is a "local improvement", i.e. assessable upon completion, long-term debt
associated with that portion of the cost of the improvement to be funded by assessments is transferred to the Trust Fund
upon the confirmation of the assessments or when the improvement is fully and permanently funded.
Interest on Delinquent Taxes - It is the policy of the Borough to collect interest for the nonpayment of taxes or
assessments on or before the date when they would become delinquent. The Tax Collector is authorized to charge eight
percent (8%) per annum on the first $1,500 of taxes becoming delinquent after due date and eighteen percent (18%) per
annum on any amount of taxes in excess of $1,500 becoming delinquent after the due date and if a delinquency is in
excess of $Ió,OOO and remains in arrears beyond December 31't, an additional penaþ of six percent (6%) shall be
charged against the delinquency. There is a ten (10) day grace period'
Comparative Data - Comparative total data for the prior year have been presented in the accompanying statements of
assets, liabilities, reserves and fund balance and statement of operations in order to provide an understanding of changes
in the Borough's financial position. However, comparative (i.e., presentation of prior year totals by fund type) data have
not been preiented in the Jtatement of revenues - regulatory basis and the statement of expenditures - regulatory basis
since their inclusion would make the statements unduly complex and difficult to read.
NOTE 2. CASH AND CASH EQUIVALENTS
Custodial Credit Risk Related to Deposits - Custodial credit risk refers to the risk that, in the event of a bank failure,
the Municipality's deposits may not be recovered. Although the Municipality does not have a formal policy regarding
custodial ciedif risk,-N.J.S.A. 17:9-41et seq. requires that governmental units shall deposit public funds in public
depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Unit' Under the Act,
the first SZSô,OOO of governmental deposits in each insured depository is protected by the Federal Deposit Insurance
Corporation (FDIC). Þublic funds owned by the municipality in excess of FDIC insured amounts are protected by
GUDPA.
25
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 2. CASH AND CASH EQUIVALENTS (CONTTNUED)
However, GUDPA does not protect intermingled trust funds such as salary withholdings or funds that may pass to the
Municipality relative to the happening of a future condition. Such funds are shown as uninsured and uncollateralized. Of
the Municipality's amount on deposit of $3,583,406 as of December 31,2017, $250,000 was insured under FDIC and the
remaining balance of $3,333,406 was collateralized under GUDPA.
NOTE 3. INVESTMENTS
New Jersey municipalities are limited as to the types of investments and types of financial institutions they may invest
in. N.J.S.A. 404:5-15.1 provides a list of permissible investments that may be purchased by New Jersey municipalities.
These permissible investments generally include bonds or other obligations of the United States of America or
obligations guaranteed by the United States of America, government money market funds, any obligation that a federal
agency or a federal instrumentalþ has issued in accordance with an act of Congress, bonds or other obligations of the
local unit or other obligations approved by the Division of Investment in the Department of Treasury for investment by
local units, local government investment pools, deposits with the State of New Jersey Cash Management Fund, and
agreements for the repurchase of fully collateralized securities with certain provisions. The Borough has no investment
policy that would further limit its investment choices.
Custodial Credit Risk Related to Investments - For an investment, custodial credit risk is the risk that, in the event of
failure of the counterparty, the Borough will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. 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.
As of December 3 1, 2017 the Borough had the fotlowing investments bearing a zero tale of interest:
Investment
Maturities
Credit Rating
Fair Value
Bond Anticipation Note
December 14,2018
N/A
228,750.00
$ 228,750.00
NOTE4. PROPERTYTAXES
The following is a comparison of certain statistical information relative to property taxes and property tax collections for
the current and previous four years ending December 31.
Comnarative Sch
le of Tax Rafes
2017
2016
2015
2014
2013
Total Tax Rate without Business
Improvement District Tax Rate
Apportionment of Tax Rate
Municipal
County
Local School
$
3.478$3.338s3.272$3.192$3.137
0.854
0.462
2.162
0.837
0.444
2.057
0.796
0.407
1.989
0.754
0.406
1.977
¿()
0.8 l8
0.438
2.016
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 4. PROPERTY TAXES (CONTTNUED)
Assessed Valuation
Comparison of Tax Levies and Collections
Year
Tax Levy
2017
2016
2015
2014
2013
2017
2016
2015
2014
2013
$
8,430,137
9,094,743
7,923,797
7,722,182
7,592,003
$
242,009,500
242,142,400
241,817,400
241,8 I 8,548
241,971,286
Collections
Percentage of
Collections
$
8,280,944
7,928,080
7,809,121
7,592,515
7,487,692
98.23%
98.06%
9855%
98.32%
98.62%
Delinquent Taxes and Tax Title Liens
Tax Title
Liens
Year
Delinquent
Taxes
Total
Delinquent
Percentage of
Tax Levv
$
1.69%
195%
1.49%
r.65%
1.37%
There were no tax title liens receivables on December 31, of the currentyear and previous four years.
NOTE 5. 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
ofsuch properties, for the current and previous four years was as follows:
Year
Amount
2017
2016
20t5
2014
2013
142,793
157,964
117,737
127,518
103,896
142,793
157,964
117,737
127,518
103,896
2017
20t6
2015
2014
2013
$
$
27
$
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 6. SEWER UTILITY SERVICE CHARGES
The following is a five-year comparison of sewer utility service charges (rents) and collections for the curent and
previous four years.
Balance Beginning of Year
Cash
Year
Receivables
Liens
Levy
Total
Collections
Percentage
$
$
s
$
$
2017
2016
2015
2014
2013
45,594
29,817
31,797
3 8,010
28,925
495,050
475,117
477,946
488,149
480,238
449,456
445,300
446,149
450,139
451,313
468,076
429,524
448,129
456,352
442,228
94.55%
90.40%
93.76%
93.49%
92.09%
NOTE 7. FUND BALANCES APPROPRIATED
The following schedule details the amount of fund balances available at the end of the current year and four previous
years and the amounts utilized in the subsequent year's budgets.
Balance
December 31,
Utilized in Budget
of Succeeding
Year
Percentage of
Fund Balance
Used
Year
Current Fund
2017
2016
2015
2014
2013
717,326
583,651
615,160
415,758
340,051
185,000
150,000
150,000
150,000
200,000
$
$
25.79%
25.70%
2438%
36.08%
58.81%
NOTE 8. INTERFUND RECEIVABLES AND PAYABLES
The following interfrurd balances were recorded on the various statements of assets, liabilities, reserves and fund
balances as of December 37,2017:
Interfund
Interfund
Fund
Receivables
Payables
Current Fund
Federal and State Grant Fund
Trust Fund:
Animal Control Fund
Other Trust Funds
General Capital Fund
39,636
38,065
8
64,713
30,000
20,249
2,065
37,519
23 6s3
$
28
s
127,950
$
127,950
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSION PLANS
Substantially all of the Borough's employees participate in one of the following pension plans which have been
established by State statute, and are administered by the New Jersey Division of Pensions and Benefits (Division): the
Police and Firemen's Retirement System (PFRS), the Public Employees' Retirement System (PERS) or the Defined
Contribution Retirement Program (DCRP). Each plan has a Board of Trustees that is primarily responsible for its
administration. The Division issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to the State of New Jersey, Division of Pensions and
Benefits. P.O. Box 295, Trenton, New Jersey , 08625-0295.
Police and Firemen's Retirement System (PFRS)
Plan Description - Tbe Police and Firemen's Retirement System is a cost sharing multiple-employer defined benefit
pension plan established in 1944. The PFRS provides retirement, death and disability, and medical benefits to qualified
members. Vesting and benefit provisions are established by N.J.S.A . 43:16A and 43:38.
Vesting and Benefit Provisions * The vesting and benefit provisions are set by N.J.S,A. 43:164. PFRS provides
retirement, death and disability benef,rts. All benefits vest after ten years of service, except disability benefits, which vest
after four years ofservice.
The following represents the membership tiers for PERS:
Tier
Definition
Members who were enrolled prior to }l4.ay 22,2010
Members who were eligible to enroll on or after li/:ay 22,2010 and prior to June 28, 201I
Members who were eligible to enroll on or after June 28, 201 I
Service retirement benefits are available at age 55 and are generally determined to be 2Yo of final compensation for each
year of creditable service up to 30 years plus l%o for each year of service in excess of 30 years. Members may seek
special retirement after achieving 25 years of creditable service, in which benefits would equal 65Yo (tiers I and 2
members) and, 60%ó (tier 3 members) of final compensation plus I % for each year of creditable service over 25 years, but
not to exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in which
case benefits would begin at age 55 equal to 2o/o of final compensation for each year of service.
Contributions - The contribution requirements of plan members are determined by N.J.S.A. 43:16A and requires
contributions by active members and contributing employers. Pursuant to the provisions of Chapter 78, P.L. 2011, the
active member contribution rate is 10.0%. Employers' contributions are based on an actuarially determined amount,
which includes the normal cost and unfunded accrued liability.
Special Funding Situation Component - Under N.J.S.A. 43:16A-15,local participating employers are responsible for
their own contributions based on actuarially determined amounts, except where legislation was passed which legally
obligated the State if certain circumstances occurred. The legislation which legally obligates the State is as follows:
Chapter 8, P.L.2000, Chapter 318, P,L.2001, Chapter 86, P.L.2001, Chapter 5ll, P.L. 1991, Chapter 109,P.L.1979,
Chapter 247,P.L. 1993 and Chapter 201,P.L.2001. The amounts contributed on behalf of the local participating
employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68,
and the State is treated as a nonemployer contributing entity. Since the local participating employers do not contribute
under this legislation directly to the plan (except for employer specific financed amounts), there is no net pension
liability or deferred outflows or inflows to record in the government-wide financial statements or to disclose in the notes
to the financial statements of the local participating employer related to this legislation.
The Borough's contractually required contribution rate for the year ended December 31,2017 was 18.34% of the
Borough's covered payroll. This amount was actuarially determined as the amount that, when combined with employee
contributions, is expected to finance the costs of benefits earned by employees during the year, including an additional
amount to finance any unfunded accrued liability.
29
1
2
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTTNUED)
Police and Firemen's Retirement System (PFRS) (Continued)
Based on the most recent PFRS measurement date of June 30,2017, the Borough's contractually required contribution to
the pension plan for the year ended December 31, 2017 is $66,017 and is payable by April l, 2018. Due to the basis of
accounting described in Note l, no liability has been recorded in the financial statements for this amount. Based on the
PFRS measurement date of June 30,2016, the Borough's contractually required contribution to the pension plan for the
year ended December 31,2016 was $67,725, which was paid by April l, 2017. Employee contributions to the pension
plan during the year ended December 3 I , 2017 were $43, 1 16.
The amount of contractually required contribution for the State of New Jersey's proportionate share, associated with the
Borough, for the year ended December 31,2017 was l.79Yo of the Borough's covered payroll.
Based on the most recent PFRS measurement date of June 30,2017, the State's contractually required contribution, on-
behalf of the Borough, to the pension plan for the year ended December 31, 2017 is $6,450 and is payable by April 1,
2018. Based on the PFRS measurement date of June 30,2016, the State's contractually required contribution, on-behalf
of the Borough, to the pension plan for the year ended December 31,2016 was $5,106, which was paid on April l, 2017'
The Borough is billed annually for its normal contributions plus any accrued liability. These contributions, equal to the
required contributions are detailed below.
Fiscal
Year
Normal
Contributions
Accrued
Liabilitv
Non
Contributory
Life
Employer
Retro
Total
Liability
Paid by
Boroush
2017
20t6
2015
$
$
$
23,052
31,984
33,124
41,729
59,163
59,1 l0
2,944
4,253
4,332
$
120
$
67,845
95,400
96,566
Pension Liqbitities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflows of Resources Related to
Pensions - For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the PFRS and
additions toldeductions from PFRS fiduciary net position have been determined on the same basis as they are reported by
PFRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
For the year ended December 31, 2017,the Borough's proportionate share of pension expense is 537,923. This expense
is not recognizedby the Borough because of the regulatory basis of accounting as described in Note l. At December 31,
2017, the Èorough proportionate share of the net pension liabilþ is $1,151,586 and deferred outflows of resources
related to PFRS from the following sources:
30
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTINUED)
Police and Firemen's Retirement System (PFRS) (Continued)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
7,471 $
6,759
Changes of assumptions
t42,003
188,596
Net Difference between projected and actual earnings
on pension plan investments
21.97 s
465,652
Changes in proportion
31,810
Borough contributions subsequent to the measurement
date
66,017
Total
s
269.276
$ 661.007
$66,017 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the year
ending December 3 I , 20 I 8. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
For the year
ended:
Net Deferred
Inflows of
Resources
2018
$
(85.617)
2019
(85,617)
2020
185.61 7)
2021
(85.6 17)
2022
(115.285)
Total
s Øs7,7s3)
31
Borough of Riverton
Notes to Financial Statements
December 31,2017
The amortization of the above other deferred outflows of resources and deferred inflows of resources related to pensions
will be over the following number of years:
Deferred Deferred
Outflows of
Inflows of
Resources Resources
Differences between expected and actual experience
Year of Pension Plan Deferral:
June 30,2014
June 30,2015
-
5.53
June 30,2016
-
5.58
June 30,2017
5.59
5.59
Changes of assumptions
Year of Pension Plan Deferral:
June 30,2014
6.17
June 30,2015
5.53
June 30,2016
5.58
June 30,2017
5.59
Net Difference between projected and actual earnings
on pension plan investments
Year of Pension Plan Deferral:
June 30,2014
5.00
5.00
June 30,2015
5.00
5'00
June 30,2016
5.00
June 30,2017
5.00
5.00
Changes in proportion
Year of Pension Plan Deferral:
June 30,2014
-
6.17
June 30,2015
-
5.53
June 30,2016
-
5.58
NOTE 9. PENSION PLANS (CONTTNUED)
Police and Firemen's Retirement System (PFRS) (Continued)
Additional Information
Collective balances at June 30,2017 and20l6 are as follows
6/30/2017
6/3012016
Collective deferred outflows of resources s
2"94r.952.753
s
4.547.3r6.s43
Collective deferred inflows of resources
s
3.262.432.093
$
688,197,s90
Collective net pension liability
s
17.167.260,198 s
20.706.699.056
Borough's Proportion
.0074593924%
0083063447%
óz
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSION PLANS (CONTTNUED)
Police and Firemen's Retirement System (PFRS) (Continued)
Actuarial assumptions - The total pension liabilþ for the June 30, 2017 measurement date was determined by an
actuarial valuation as of July 1,2016, which was rolled forward to June 30,2017. This actuarial valuation used the
following actuarial assumptions:
Inflation rate:2.25Vo
Salary Increases:
Through 2026:2.10-8.98% based on age
Thereafter: 3.10-998% based on age
Investment Rate of Return:7,00Yo
Additional Information
pre-retirement mortality rates were based on the RP-2000 Pre-Retirement Mortality Tables projected thirteen years using
projection Scale BB and then projected on a generational basis using the plan actuary's modified 2014 projections scales.
posi-retirement mortality rates for male service retirements and beneficiaries are based on the RP-2000 Combined
Healthy Mortality Tables projected one year using Projection Scale AA and three years using the plan actuary's modified
2014 projectionicales, which was further projected on a generational basis using the plans actuary's modified 2014
proiection scales. Post-retirement mortality rates for female service retirement and beneficiaries were based on the RP-
ãOdO ComUined Healthy Mortality Tables projected thineen years using Projection Scale BB and then three years using
the plan actuary's modined 2014 projection scales, which was further projected on a generational basis using the plans
actuary's modihed 2014 projection scales. Disability mortality rates were based on special mortality tables used for the
period after disability retirement.
The actuarial assumptions used in the July l, 2016 valuation were based on the results of an actuarial experience study
for the period July 1, 2010 to June 30, 2013
Long-Term Expected Rate of Return -In accordance with State statute, the long-term expected rate of return on plan
investments i.OOy" at June'30,2017) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries, The long term
expected rate of return was determined using a building block method n which best-estimate ranges of expected future
reâl rates ofreturn (expected refl¡rnso net ofpènsion plan investment expense and inflation) are developed for each major
asset class. These rangis are combined to produce the long-term expected rate of return by weighting the expected future
real rates ofreturn by the target asset allocation percentage and by adding expected inflation'
2a
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTINUED)
Potice and Firemen's Retirement System (PFRS) (Continued)
Best estimates of arithmetic real rates of return for each major asset class included in PFRS's target asset allocation as of
June 30, 2017 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Absolute return/risk mitigation
Cash equivalents
U,S. Treasuries
Investment grade credit
Public high yield
Global diversified credit
Credit oriented hedge funds
Debt related private equity
Debt related real estate
Private real assets
Equity related real estate
U,S. Equity
Non-U.S. developed markets equity
Emerging markets equity
Buyouts/venture capital
05.00%
0550%
03.00%
10.00%
02.50%
05.00%
01.00%
02.00%
01.00%
02.50%
06.25%
30.00%
tl50%
06.50%
08.25%
05.sl%o
01.00%
01.87%
03.78%
06.82%
07.10%
06.60%
t0.63%
06.6t%
r1.83%
0923%
08.t9%
09.00%
11.64%
13.08%
100.00%
Discount rate. The discount rate used to measure the State's total pension liability was 6'140/o as of June 30, 2017' This
single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7 '00%'
anja municipal bond rate of 3.58% as of June zo,zotl,básed on the Bond Buyer Go 20-Bond Municipal Bond Index
which includes tax-exempt general obligation municipal bonds with ur average rating of AAIAa or higher' The
projection of cash flows uiedio determine the discount rate assumed that contributions from plan members will be made
àt the cunent member contribution rates and that contributions from employers and the nonemployer contributing entþ
will be made based on the contribution rate in the most recent fiscal year. That state employer contributed 40Yo of the
actuarially determined contributions and the local employers contributed l00Yo of their actuarially determined
contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make
projected future benefit payments of cunent plan members through 2057. Therefore, the long-term expected rate of
i.tu* on plan investm.nìr-*ur applied to projected benefit payments through 2057, and the municipal bond rate was
applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Borough's proportionate share of the net pension tiability to changes in the discount rate. The
following piesents the Bãrough's and State's proportionate share of the net pension liability measured as of June 30,
20fi, cllculated using the disõount rate of 6.14\0, as well as what the Borough's proportionate share of the net pension
liability would be if lt were calculated using a discount rate that is I percentage point lower (5.14%) or I percentage
point higher (7.14%) that the cunent rate:
34
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSION PLANS (CONTTNUED)
Police and Firemen's Retirement System (PFRS) (Continued)
17o Decrease
(s. l40 l
Borough's proportionate share of the
net pension liability
Current
Discount Rate
17o Increase
(7.14%)
l4V"
$ 1,517,309 $ 1,151,586 $
851,103
366.916
3r0.027
263.395
State's proportionate share ofthe
. net pension liability associated with the
Borough
_$_1,884,22s_ _$_1191{_u_
$ 1,114,497
pension ptanfiduciary net position. Detailed information about the pension plan's fiduciary net position is available in
the separately issued State of New Jersey Division of Pensions and Benefits financial report'
Public Employees' Retirement System (PERS)
plan Description - The public Employees' Retirement System is a cost-sharing multiple-employer defined benefit
pension plan which was established on January l, 1955. The PERS provides retirement, death and disability, and
medical benefits to certain qualified members. Vesting Membership in the PERS is mandatory for substantially all full-
time employees of the Borôugh, provided the employie is not required to be a member of another state-administered
retirement system or other stãte pension fund or local jurisdiction's pension fund. The PERS's Board of Trustees is
primarily responsible for the administration of the PERS.
Vesting and Benefit provisions - The vesting and benefit provisions are set by N.J.S.A' 43:154 and 43:38. PERS
providãs retiremeit, death and disabilþ benefits. All benefits vest after ten years of service, except medical benefits,
which vest after 25 years of service or under the disability provisions of PERS
The following represents the membership tiers for PERS:
Tier
Definition
Members who were enrolled prior to July l, 2007
Members who were eligible to enroll on or after July l, 2007 and prior to November 2,2008
Members who were eligibte to enroll on or after November 2, 2008 and prior to May 22,2010
Members who were eligible to enroll on or after l[4ay 22,2010 and prior to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of l/55ü of final average salary for each year of service credit is available to tiers I and 2
members upon reachin g age 60 and to tier 3 membe*rs upon reachin g age 62. Service retirement benefits of l/60ú of final
average saiary for "urñyã* of service credit is available totier 4 members upon reachingage 62 and tier 5 members
upon ieachin g age 65. Early retirement benefits are available to tier I and 2 members before reaching age 60, tiers 3 and
4 before ug. ãz littt 25 or-more years of service credit, and tier 5 before age 65 with 30 or more years of service credit.
Benefits aie reduced by a fraction of a percent for each month that a member retires prior to the retirement age for his/her
respective tier. Defenód retirement is available to members who have at least l0 years of service credit and have not
reached the service retirement age for their respective tier.
I
2
3
4
5
35
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTTNUED)
Public Employees' Retirement System (PERS) (Continued)
Contributiom - The contribution requirements of plan members are determined by N.J.S.A 43:l5A and requires
contributions by active members and contributing employers. Members contribute at a uniform rate. Pursuant to the
provisions of Chapter 78, P.L.20ll, effective October 1,2071, the active member contribution rate was increased to
6.5%. An additional 1.0% increase is being phased-in over seven years beginning on July 1, 2012. The member
confribution rate was 7 .20% in State fiscal year 2017 . The phase-in of the additional incremental member contribution
rate takes place in July of each subsequent State fiscal year. The rate for members who are eligible for the Prosecutors
Part of PERS (Chapter 336, P.L. 2001) increased from 8.5% of base salary to l0%. Employers' contribution amotmts are
based on an actuarially determined rate. The Borough's contribution amounts are based on an actuarially determined rate
which included the normal cost and unfunded accrued liability.
The Borough's contractually required contribution rate for the year ended Decembet 31, 2011 was 14.75%o of the
Borough's õovered payroll, This amount was actuarially determined as the amount that, when combined with employee
contributions, is expeóted to flrnance the costs of benefits earned by employees during the year, including an additional
amount to finance any unfunded accrued liabilþ.
Based on the most recent PERS measurement date of June 30, 2017 , the Borough's contractually required contribution to
the pension plan for the fiscal year ended December 31 2017 was $59,669 and is payable by April 1, 2018. Based on the
pBtiS measurement date of Jgne 30,2016, the Borough's contractually required contribution to the pension plan for the
year ended December 31,2016 was 556,874, which was paid by April 1,2017. Employee contributions to the pension
plan during the year ended December 31, 2017 were $31,514.
The Borough is billed annually for its normal contributions plus any accrued liability. These contributions, equal to the
required contributions are detailed below
Total
Liability
Paid by
Borough
Fiscal
Year
Normal
Contributions
Accrued
Liabilitv
Non
Contributory
Life
Employer
Retro
2017
2016
2015
8,896
10,223
9,871
$
$
$
45,274
47,093
45,661
2,704
3,069
3,761
$
278
$
57,152
60,385
59,293
pension Liabilities, pension hpense, and Defened Out/tow of Resources and Deferred Inflows of Resources Related to
pensions -Forpurposes of measuringthe netpension liability, deferred outflows of resources and defened inflows of
resources relateã tõ pensions, and pénsion eip.nse, information about the fiduciary net position of the PERS and
additions to/deductions from PERS fiduciary neiposition have been determined on the same basis as they are reported by
pERS. For this purpose, beneht payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
At December 31,2017, the Borough's proportionate share of the PERS net pension liability was $1,499,362. The net
pension liability was measured asìf June 30, 2017, and the total pension liability used to calculate the net pension
iiuUitity was deiermined by an actuarial valuation as of July 1,2016. The Borough's proportion of the of the net pension
liability was based on a piojection of the Borough's long-term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined.
For the year ended December 31,2017, the Borough's proportionate share of the PERS pension expense, calculated by
the plan as of the June 30,2017 measurement date is $82,140. This expense is not recognizedby the Borough because of
the regulatory basis of accounting as described in note I .
ór)
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTTNUED)
Public Employees' Retirement System (PERS) (Continued)
At December 31,2017, the Borough proportionate share of the PERS net pension liability was $1,499,362 and deferred
outflows of resources related to PERS from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
35,30s
$
Changes of assumptions
302.070
300.962
Net Difference between projected and actual earnings
on pension plan investments
10,210
Changes in proportion
6,989
94,594
Borough contributions subsequent to the measurement
date
59.669
Total
$
414,243 $ 39s,ss6
$59,669 included in deferred outflows of resowces, will be included as a reduction of the net pension liability in the year
ending December 31,2018. Other amounts reported as deferred outflows of resoruces and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
For the year
ended:
Net Defened
Inflows of
Resources
2018
$
134.949)
2019
(34.949\
2020
10,966
2021
(14.977)
2022
255
Total
$
(73.654)
37
Borough of Riverton
Notes to Financial Statements
December 3lo2017
NOTE 9. PENSTON PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
The amortizaf|on of the above other defened outflows of resources and deferred inflows of resources related to pensions
will be over the following number of years:
Deferred Deferred
Outflows of
Inflows of
Resowces Resources
Differences between expected and actual experience
Year of Pension Plan Deferral:
June 30, 2014
June 30, 2015
5'72
June 30,2016
5.57
June 30,2017
5.48
Changes of assumptions
Year of Pension Plan Deferral:
June 30,2014
6.44
June 30,2015
5'72
June 30, 2016
5.57
June 30, 2017
-
5'48
Net Difference between projected and actual earnings
on pension plan investments
Year of Pension Plan Deferral:
June 30,2014
-
5'00
June 30,2015
-
5'00
June 30,2016
5.00
June 30,2017
5.00
Changes in proportion
Year of Pension Plan Deferral:
June 30, 2014
6.44
6'44
June 30, 2015
5.72
5'72
June 30, 2o16
5'57
5'57
Additional Information
Collective balances at June 30,2017 and2016 are as follows:
6130/2017
6130/2016
Collective deferred outflows of resources s
6,424,455,842
$
8,685,33 8,3 80
Collective defened inflows of resources
$
5,700,625,981
$
870,133,595
Collective net pension liability
s
23.278.401,588
s
29.617.131.759
Borough's Proportion
0064410015%
0064019489%
Actuarial assumptions - The total pension liabilþ for the June 30, 2017 measurement date was determined by an
actuarial valuation as of July 7,2016, which was rolled forward to Jr.rne 30,2017 '
3B
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement:
Inflation rate:2.24Yo
Salary Increases:
Through 2026: 1.65-4.15% based on age
Thereafter: 2.65-5.15% based on age
Investment Rate of Return:7 .00Yo
pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for male and female
active employees. For State employees, mortality tables are set back 4 years for males and females. For local employees,
mortality tables are set back2years for males and 7 years for females. In addition, the tables provide for future
improvements in mortality from the base year of 2013 using a generational approach based on the plan actuary's
modified y1p-2014 projection scale. Post-retirement mortality rates were based on the RP-2000 Combined Healtþ Male
and Female Mortalþ Tables (set back I year for males and females) for service retirements and beneficiaries of former
members and a one-year static projection based on mortality improvement Scale AA. In addition, the tables for service
retirements and beneficiaries oi former members provide for future improvements in mortalþ from the base year of
2013 using a generational approach based on the plan actuary's modified MP-2014 projection scale. Disabilþ
retirement rates used to value disabled retirees were based on the RP-2000 Disables Mortality Table (set back 3 years for
males and set forward I year for females).
The actuarial assumptions used in the July 1,2016 valuation were based on the results of an actuarial experience study
for the period July l, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these
assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher
or lowèr than anticipated, The more the experience deviates, the larger the impact on future financial statements'
Long-Term Expected Røte of Return -In accordance with State statute, the long-term expected rate of retum on plan
inveitments (7'¡0% at June lO,ZOtl¡ is determined by the State Treaswer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method in which best-estimate ranges of expected futwe
,râl ,ut., ofreturn (expected returns, net ofpension plan investment expense and inflation) are developed for each major
asset class. These rangis are combined to prãduce the long-term expected rate of return by weighting the expected future
real rates ofreturn by the target asset allocation percentage and by adding expected inflation.
39
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSTON PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
Best estimates of arithmetic real rates of return for each major asset class included in PERS's target asset allocation as of
June 30, 2017 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Absolute return/risk mitigation
Cash equivalents
U.S. Treasuries
Investment grade credit
Public high yield
Global diversified credit
Credit oriented hedge funds
Debt related private equþ
Debt related real estate
Private real assets
Equity related real estate
U.S. Equity
Non-U.S. developed markets equity
Emerging markets equity
Buyouts/venture capital
05.00%
05.50%
03.00%
10.00%
0250%
05.00%
01.00%
02.00%
01.00%
0250%
06.25%
30.00%
r1j0%
06.50%
08.25%
05.51%
01.00%
01,87%
03J8%
06.82%
0'7.10%
06.60%
10.63%
06.61%
11.83%
09.23%
08.19%
09.00%
11.64%
13.08%
100.00%
Discount rate. The discount rate used to measure the State's total pension liabilþ was 5.00% as of June 30, 2017' This
single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7 '00%'
anja municipal bond rate of 3.sB% as of June 30,2ol7,based on the Bond Buyer Go 20-Bond Municipal Bond Index
which includìs tax-exempt general obligation municipal bonds with an aveÍage rating of AAIAa or higher. The
projection of cash flows uiedio determine the discount rate assumed that contributions from plan members will be made
ãt the current member contribution rates and that contributions from employers will be made based on the contribution
rate in the most recent fiscal year. The state employer contributed40% of the actuarially determined contributions and
the local employers contribuied 100% of tleir actuarially determined contributions. Based on those assumptions, the
plan's frduciary-net position was projected to be available to make projected future benefit payments of current plan
members through 2040. therefor., th. long-term expected rate of return on plan investments was applied to projected
benefit puy-"nir through 2040, andthe municipal bond rate was applied to projected benefit payments after that date in
determining the total pension liability.
Sensitivity of the Borough's proportionate share of the net pension tiøbility to changes in the discount rate. The
following piesents the Èorough;s proportionate share of the net pension liability measured as of June 30,2017,
calculateã ùsing the discount rite of 5.00%, as well as what the Borough's proportionate share of the net pension liability
would be if it were calculated using a discount raþ rhú is I percentage point lower (4.00%) or I percentage point higher
(6.00%) that the current rate:
Current
17o Decrease Discount Rate
l7o Increase
(4.00o/ol
(s.00v,)
(6.00 Vol
Borough's proportionate share of the
net pension liability
$ 1,g60,060 s 1,499,362 $ 1,198,856
40
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 9. PENSION PLANS (CONTTNUED)
Public Employees' Retirement System (PERS) (Continued)
Pension Ptanfiduciøry net position. Detailed information about the pension plan's fiduciary net position is available in
the separately issued State of New Jersey Division of Pensions and Benefits financial report.
DeJined Contributíon Retirement Program (DCRP)
The Defined Contribution Retirement Program is a cost-sharing multiple-employer defined contribution pension plan
which was established on July 1,2007, under the provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007
(N.J.S.4.43:l5C-1 et. seq), andexpandedundertheprovisions of Chapter 89, P.L.2008 andChapter 1, P.L.2010. The
Defined Contribution Rêtirement Program Board oversees the DCRP, which is administered for the Divisions of
pensions and Benefits by Prudential Financial. The DCRP provides eligible members, and their beneficiaries, with a
tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. Vesting and
benefit provisions are established by N.J.S.A. 43:l5C-1 et. seq.
The contribution requirements of plan members are determined by State statute. In accordance with Chapter 92, P.L.
200i and Chapter tb:, p,L. Z00l,plan members are required to contribute 5.5o/o of their annual covered salary. In
addition to thô employee contributions, the Borough's contribution amounts for each pay period are transmitted to
prudential Financiai not later than the fifth business day after the date on which the employee is paid for that pay period.
There were no Borough employees enrolled in the DCRP for the years ended Decemb er 31, 2017 , 2016 and 2015.
Related party Investments - The Division of Pensions and Benefits does not invest in securities issued by the Borough.
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS (OPEB)
The financial statements of the Borough are not prepared in accordance with Governmental Standards Board Statement
No. 45. The following information is provided in accordance with the requirements of the Statement.
plan Description - The Borough contributes to the State Health Benefits Program ("SHBP"), a cost-sharing multiple'
employer deirned benefit post-eirployment healthcare plan administered by the State of New Jersey Division of Pension
and Benefits. SHBP wai 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. Rules governing the operation and administration of the program are found in
titie iZ, Chapter 9 of the New Jersey Administrative code. SHBP provides medical, prescription drugs, mental
health/substanòe 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 resolutión to participate in the SHBP. The Borough's defined benefit postemployment
neajthóare plan provides post employment heaith care benefits, at its cost, to certain retired employees. A Borough
employee will receive paià health insurance benefits upon retirement from the Borough provided they 1) retire from the
noiougtr with at least iwenty-five years of service in the New Jersey Public Employees Retirement System, 2) rettre
from tñe Borough with at least twenty years of service with the Borough, and 3) at the time of retirement the employee is
at least sixty+wã years of age. Retireés will not be eligible to receive paid health coverage for their spouses or for their
dependents.
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 JerseyDivision of Pensions andBenefits issues apublicly available financialreportthat
includes financial statements and required supplementary information for SHBP. That report may be obtained by writing
to the State of New Jersey, Divisionôf Pensions and Benefits, P.O. Box 295, Trenton, New Jersey 08625.
41
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTTNUED)
participating employers are contractually required to contribute based on the amount of premiums attributable to their
retireei. post-retirement medical benefits under the plan have been funded on a pay-as-you-go basis since 1994. Prior to
1994,medical benefits were funded on an actuarial basis.
Contributions to pay for the health premiums of participating retirees in the SHBP are billed to the Borough on a
monthly basis. 'ihó norough funds these benefits on a pay-as-you-go basis and therefore does not record accrued
.*p..rrås related to these benefits. During the year 2017,2016 and 2015 there were ten, ten, and ten retired employees,
reipectively who received this benefit resulting in payments of 8212,163, $208,163, and $154,216 in related health care
premiums.
NOTE 1I. COMPENSATED ABSENCES
police offrcers hired prior to January 8, 2009 are entitled to thirty paid sick leave days each year and are permitted to
accumulate up to ten- sick days per yeff with a maximum of seventy days. Officers lired after January 8, 2009 are
entitled to fifteen days of si"[ leãue each year and are permitted to accumulate up to fifteen sick days per year with a
maximum of eighty-irve days. Vacation dáys not used during the year may not be accumulated and carried forward. At
the time of an officer's retirement, in accoráance with the New Jersey Police and Firemen's Pension System, the officer
will be paid fifty percent of all accumulated sick pay based on an eight-hour day at their current hourly rate.
All other Borough employees are not entitled to be compensated for accumulated unused sick leave days.
The Borough does not record accrued expenses related to compensated absences. However, it is estimated that, at
December i1,2017, accrued benefits for compensated absences are valued at520,074.
The Borough has established a Compensated Absences Trust Fund to set aside funds for the future payments of
compensateã absences. At December 31,2017 the balance of the fund is $30,000.00.
NOTE 12. DEFERRED COMPENSATION SALARY ACCOUNT
The Borough offers its employees a deferred compensation plan created in accordance with Intemal Revenue Code
section 457 and which havå báen approved by the birector of the Division of Local Govemment Services. The plan,
available to all full time employees æ their option, permits them to defer a portion of their salary to future years. The
deferred compensation is ntt ävailable to the participants until termination, retirement, death, or an unforeseeable
emergency occws.
Amounts deferred under Section 457 plans must be held in trust for the exclusive benefit of participating employees and
not be accessible by the Borough or its creditors. since the Borough does not have a fiduciary relationship with the Plan,
the balances and activities of the Plan are not reported in the Borough's financial statements.
NOTE 13. RISK MANAGEMENT
The Borough is exposed to various risks ofloss related to torts; theft ol damage to, and destruction ofassets; errors and
omissions; employee health and accident claims; and natural disasters.
Commercial Insurance Coverage - The Borough maintains commercial insurance coverage for properly and general
tiability, health benefits, boiler
"and machinery, surety bonds, crime, public officials' liability, and excess liability
coverage for workers compensation and disability benefits.
42
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 14. 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 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 current and previous two years:
Fiscal
Year
Interest
Earnings
Employee
Amount
Contributions Reimbursed
Ending
Balance
NOTE 15. CAPITAL DEBT
Summary of Municipal Debt
$
14,176
t2,t7t
10,273
12,703
Yezr 2017
Year 2016
Year 2015
$ 1,959,422 $ 1,859,627 8
1,658,37',1
2017
2016
2015
189
185
79
1,864
1,713
1,327
$
$
48$
Issued:
General Bonds and Notes
Loans
Total Issued
1,959,422
1,859,627
1,658,377
Authorized But Not Issued:
General Bonds and Notes
146.423
146,423
357,923
Net Debt
$ 2,105,845 $ 2,006,050 $
l6
Summary of Statutory Debt Condition - Annual Debt Statement
The summarized statement of debt condition which follows is prepared in accordance with required method of setting up
the Annual Debt Statement and indicates a statutory net debt of 0.714%.
Gross Debt
Deductions
Net Debt
Local School District Debt
General Debt
$
$
2,105,845
,) 105 845
Total
$ 2,105,845 $
$
2,105,845
Net Debt, $2,105,845, divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2, as amended, $272,207,086 equals
0.774%.
$
43
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 15. CAPITAL DEBT (CONTTNUED)
Equalized Valuation Basis:
I
262,730,661
273,916,742
279,973,855
Average
$
272,207,086
Borrowing Power Under N.J.S.A. 40A:2-6
3 ll2% of Equalized Valuation Basis (Mruricipal)
Net Debt
2015
2016
2017
$
9,530,748
2 105 845
Remaining Borrowing Power
$
7,424903-
The foregoing debt information is in agreement with the Annual Debt Statement filed by the Chief Financial Officer
Bond Anticipation Notes Payable
The Borough issues bond anticipation notes to temporarily fund various capital projects prior to the issuance of serial
bonds. Thé term of the Notes can not exceed one y"ur from the date of issuance, however the Notes may be renewed
from time to time for a period not to exceed one year. Generally, such Notes must be paid no later than the first day of
the fifth month following the close of the tenth ftrscal year following the date of the original Notes' The State of New
Jersey also prescribes thut on or before the third anniversary date of the original Note a payment of an amount at least
.quui to the first legally payable installment of the bonds in anticipation of which such Notes were issued be paid or
retired. A second an¿ t¡irá legal installment must be paid if the Notes are to be renewed beyond the forth and fifth
anniversary date ofthe original issuance.
As of December 31, 2017 the Borough had outstanding bond anticipation notes as follows:
Fund
Amount
Outstandine
Interest
Rate
Maturitv Date
General Capital
General Capital
$
228,750
1.730,672
(l)
2.25%
December 14,2018
September 8, 2018
At December 3l,ZOI7 the Borough had operating lease agreements in effect for the rental of the fire engine room, police
station and storage space and a copier. All lease agreements are for an indefinite period of time. Rental payments under
the operating leases for the year ended December 31,2017 were $14,028.
Total
S
1,959,422
-
(l)
There is no interest rate as the Current Fund ofthe Borough holds these notes as an investment. See Note 3
44
Borough of Riverton
Notes to Financial Statements
December 31,2017
NOTE 15. CAPTTAL DEBT (CONTINUED)
Future minimum rental payments under operating lease agreements are as follows:
Year
Total
$
14,028
12,000
Total
$
26,028
NOTET6. SCHOOLTAXES
Local District School Tax has been raised and liabilities deferred by statute, resulting in the school taxes payable set
forth in the Current Fund Liabilities as follows:
Local District School Tax
Balance December 31'
2017
2016
201 8
20t9
Balance of Tax
Deferred
s
2,616,373
848.166
s
2,490,792
848,766
School Tax Payable S 1,767,607 S
T,6i2,026
NOTE 17. CONTINGENCIES
The Borough participates in a number of state and federally assisted grant programs. The programs are subject to
complianceiauàitr unã.r the single audit approach. Such audits could lead to requests for reimbursement by the grantor
ug"nìy for expenditures disallowed under terms of the grants. Management believes that the amount from future audits,
if any, would not be material.
45
SUPPLEMENTAL EXHIBITS
CURRENT FUND
EXHIBIT A.4
BOROUGH OF RIVERTON
Current Fund
Statement of Gash - Collector/Treasurer
For the Year Ended December 31,2017
CURRENT FUND
$ 2,238,794.42
FEDERAL AND STATE
GRANT FUND
$
6,031.11
15,563.44
15,563.44
21 ,594.55
2,139.83
18,232.52
20,372.35
Balance December 31 , 201 6
Receipts:
Taxes Receivable
Sewer Rent Receivable
Special Charges
Revenue Accounts Receivable
Due from State of New Jersey - Senior Citizens
and Veterans Deductions
Prepaid 2017 Taxes
Tax Overpayments
Prepaid 2017 Sewer
Sewer Overpayments
Federal and State Grants Receivable
Due to Trust Fund
Due to Capital Fund
Due to State of NJ - Construction Code Fees
Miscellaneous Revenue Not Anticipated
Contra
Total Receipts
Total Funds Available
Disbursements:
2017 Appropriations
2016 Appropriation Reserves and Accounts
Payable
Due to State of NJ - Construction Code Fees
County Taxes Payable
Due County for Added Taxes
Local District School Tax
Tax Overpayments
lnvestment - BAN
Due to Trust Fund
Due to Capital Fund
Due from Current Fund
Contra
Reserve for Federal and State Grant Funds -
Appropriated
Total Disbursements
$ 8,350,906.67
459,269.04
44,400.00
523,114.43
29,250.00
398,471.30
9,656.38
6,623.'14
620.63
198,250.00
2,256.93
21,989.22
39,795.55
2,545,275.76
150,327.25
1,701.59
1,113,451.85
269.64
5,1 07,1 63.96
1.176.74
1 ,610.00
334,807.31
39,795.55
10, 084,603.29
12,323,397.71
9,295,579.65
$
Balance December 31 ,2017
48
$ 3,027,818.06
$
'l,222.20
EXHIBIT A.5
BOROUGH OF RIVERTON
Current Fund
Schedule of Taxes Receivable and Analysis of property Tax Levy
For the Year Ended December 3i, 201 7
Balance
December 31,
2016
$
3,061.03
1,133.96
1 53,769.18
157,964.17
$ 157,964.17
Added
Collections bv Cash
2016
2017
State Share of
Senior Citizen
and Veterans
Deductions
Allowed
$
1,1 1s,185.16
2,082,206.60
Over Payments
Applied
Balance
December 31,
2017
Year
Taxes
2017 Lew
$
8,430,136.76
46,O22.01
$
$ 8,430,136.76 $ 46,022.01
Tax Levy:
Local District School Tax (AbstÍact)
County Taxes:
Regular Tax (Abstract)
L¡brary Tax (Abstract)
Open Space Preservation Tax (Abstract)
Amount Due County for Added Taxes
(54:4-63.1 et. Seq.)
Local Tax for Municipal Purposes
Addit¡onal Tax Levies
154,092.24
8,196,814.43
29,250.00
$ 8,350,906.67 $
29,250.00 $
$
8,388,090.41
13,046.35
29,000.00
$
8.430.136.76
$
5,232,745.00
$
919,004.55
84,928.47
109,518.83
Canceled
$
2,734.63
1 ,133.96
3.34
8,857.58
10.271.92
3,871.93
138,920.82
8,857.58$10,271-929142.792.75
2014
2015
2016
$
$
ù
G
326.40
I 53,765.84
$
2017
Total
A
(o
ANALYSIS OF PROPERTY TAX LEVY
Tax Yield:
General Purpose Tax
Added Taxes
Senior Citizens and Veterans Deductions Allowed
Per Or¡ginal Levy
Total
1,733.31
2,068,684.69
13,521.91
Total
$
8,430,136.76
EXHIBIT A-6
BOROUGH OF RIVERTON
Gurrent Fund
Schedule of Revenue Accounts Receivable
For the Year Ended December 31,2O17
Borough Clerk:
Registrar of Vital Statistics - L¡censes
Fees and Permits
Cell Tower Fees
Park Fees
Municipal Court - Fines and Costs
lnterest and Costs on Taxes
Fire Official - Uniform Fire Safety -
Fees and Perm¡ts
Construction Code Fees
lnterest on lnvestments and
Bank Deposits
Energy Rece¡pts Tax
Consolidated Municipal Property
Tax Relief Aid
Payments in Lieu of Taxes
Cable TV Franchise Fees
Total
1,264.00
8,150.00
34,030.77
3,550.00
108,121.77
44,009.38
1,264.00
I,150.00
34,030.77
3,550.00
112,687.89
44,009.38
Remarks
5,943.38 Rec'd Jan 2018
Balãncê
December 31,
2016
$
10,509.50
Accrued
in 2017
Balance
December 31,
2017
Collected
13,793.43
33,787.O7
6,669.42
4,252.OO
226,325-00
23,291.60
11,303.87
$
$
$
13,793.43
33,787.07
6,669.42
4,252.00
4,549.14
$ 15,058.64 $ 513,999.17 $
114.43 $
5,943.38
226,325.00
18,742.46
11,303.87
50
EXHIBIT A-7
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Recievable
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Sewer Rent Billed in 2017
Total
Decreased by:
Collections
Overpayments Applied
Balance December 31, 2017
$
459,269.04
I 807.1 9
$
45,593.87
449,456.24
495,050.11
468,076.23
$
26,973.88
51
EXHIBIT A-8
BOROUGH OF RIVERTON
Current Fund
Schedule of Due From State of New Jersey-
Senior Citizen and Veterans' Deductions
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Accrued in2017:
Senior Citizens Deductions Per Billings
Veterans Deductions Per Billings
Add - Current Year Senior Citizen and Veteran Allowed by Collector
Decreased by:
Cash Received
Balance December 31,2017 (Due to)
$
3,750.00
$
(750.00)
29,250.00
28,500.00
29,250.00
$
(750.00)
25 250.00
29,000.00
250.00
52
EXHIBIT A-9
BOROUGH OF RIVERTON
CURRENT FUND
Statement of 2016 Appropriation Reserves and Reserve for Encumbrances
For The Year Ended December 31, 2017
Salaries and Wages:
Borough Clerk
Financ¡al Administration
Collection of Taxes
Assessment of Taxes
Planning Board
Police
Fire Official
Road Repair and Ma¡ntenance
Registrar of Vital Statistics
Sewerage
Public Defender
Construction Code Office
Other Expenses:
Mayor and Council
Borough Clerk
Financial Administration
Computerizing Data Processing
Coilection of Taxes
Assessment of Taxes
Legal Services and Costs
Engineer
Planning Board
Liability lnsurance
Worker Compensat¡on
Employees Group lnsurance
Police
Office of Emergency Management
Fire
Fire Official
Road Repair and Maintenance
Shade Tree Comm¡ssion
Solid Waste Collect¡on
Public Buildings and Grounds
Vehicle Maintenance
Registrar of Vital Statistics
Animal Control
Recreation
Ce¡ebration of Public Events
Elech¡city
Street Lighting
Telephone
Water
Fire Hydrant Service
Sewerage Processing
Gasoline
Landfill and Solid Waste Disposal Costs
Municipal Court
Construction Code Office
Social Security System
Balance December 31. 2016
Encumbered Reserved
$
300.00
549.00
2,090.96
442.56
42.37
24.75
16.97
8.14
6.41
14,527.07
26.49
7,269.11
17.69
730.60
800.00
1.35
41.32
826.51
6.82
45.00
20.48
1,104.27
3,162.81
2,730.33
11.31
6,061.50
42.37
24.75
16.97
8.14
6.41
14,527.07
26.49
2,769.11
17.69
730.60
1 , 100.00
1.35
590.32
2,917.47
449.38
45.00
495.28
1,162.91
3,704.81
2,930.33
2,944.31
6,061.50
$
Balance
After
Transfers
Peid or
Charqed
2,612.74
300.00
549.00
2,1 60.96
442.56
474.80
58.64
598.76
200.00
2,944.25
632.1 0
1,695.30
51.92
32.00
51 1.08
8,890.02
630.06
1,569.0s
235.00
1 75.00
6,000.48
4,021.85
1 05.1 0
192.04
I I,4öt,Zó
2,771.17
7,454.01
87,532.08
Balance
Laosed
$
$
42.37
24.75
I 6.97
8.14
6.41
I 1,914.33
26.49
2,769.11
17.69
730.60
800.00
1.35
41.32
756.51
6.82
45.00
20.48
1,104.27
3,106.05
2,730.33
0.06
6,061.50
474.80
58.64
542.00
200.00
2,933.00
632.1 0
595.30
51.92
32.00
51 1.08
8,807.00
614.12
1,444.62
255.00
1 75.00
105.10
192.04
6,479.87
2,271 .17
7,454.01
34.40
6,674.41
366.24
79.67
49.24
733.73
18.1 0
92.43
31.10
211.03
1 50.00
363.50
3,378.41
600.00
9,526.91
7,168.55
434.48
49.88
64.95
I C,03ó. t O
3,334.25
28.07
70,807.56
588.24
939.56
666.50
7,269.71
366.24
131.59
81.24
1,244.81
18.10
8,899.43
645.22
1,655.65
150.00
618.50
3,553.41
600.00
6,526.91
4,1 68.55
434.48
154.98
256.99
tö, tJJ.þJ
3,105.42
7,482.08
87,807.56
588.24
939.56
34.40
5,574.41
366.24
79.67
49.24
733.73
I 8.10
9.41
15.16
86.60
1 50.00
383.50
3,378.41
600.00
526.43
146.70
434.48
49.88
64.95
þ4b.J5
334.25
28.07
275.48
588.24
939.56
$ 37,211.29 $ 158,859.77 $ 196,071.06 $ 150,327.2s
$
Total
53
45,743.81
EXHIBIT A-IO
BOROUGH OF RIVERTON
Current Fund
Schedule of Tax Overpayments
Forthe Year Ended December 3'|.,2017
Balance December 31 , 2016
lncreased by:
Collected
Subtotal
Decreased by:
Cash Disbursed
Canceled
Overpayment Applied to 20'1 7 Taxes
Balance December 31 ,2017
1,176.74
2,723.38
8,857.58
$
26,951.62
9,656.38
36,608.00
12,757.70
$
23,850.30
EXHIBIT A-11
Schedule of Prepaid Taxes
Forthe Year Ended December 31,2017
Balance December 31 ,2016
lncreased by:
Collected
Subtotal
Decreased by:
Applied to 2017 Taxes
Balance December 31 ,2017
$
46,022.01
398,471.30
444,493.31
46,022.01
$
398,471.30
54
Exhibit A-12
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Overpayments
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Collected
Decreased by:
Applied to 2017 Sewer Rents
Balance December 31, 2017
$
8,807.19
620.63
9,427.92
I,807.19
$
620.63
Exhibit A-13
Schedule of Due to State of NJ - UCC Fees
For the Year Ended December 31',201.7
Balance December 31, 2016
lncreased by:
State Portion of UCC Fees
Decreased by:
Disbursements
Balance December 31, 2017
$
296.59
2,256.93
2,553.52
1,701.59
$
851.93
ÈE
EXHIBIT A.14
BOROUGH OF RIVERTON
Gurrent Fund
Schedule of County Taxes Payable
For the Year Ended December 31, 2017
Balance December 31, 2016
lncreased by:
2017 Levy:
General'County
County Library
County Open Space
Added and Omitted Taxes
Subtotal
Decreased by:
Payments
Balance December 31, 2017
919,004.55
84,928.47
109,518.83
1,733.31
269.64
1,115,185.16
$
$
1,115,454.80
113 721.49
1
$
1,733.31
56
EXHIBIT A.15
BOROUGH OF RIVERTON
Current Fund
Schedule of Local District School Tax Payable
For the Year Ended December 31,2017
Balance December 31, 2016:
School Tax Payable
School Tax Deferred
lncreased by:
Levy - School Year July 1,2017 to June 30, 201 8
Total
Decreased by
Payments
Balance December 31, 2Q17 :
School Tax Payable
School Tax Deferred
2017 Liability for Local District School Tax:
Tax Paid
Tax Payable December 31 ,2017
Total
Less:
Tax Payable December 31, 2016
Amount Charged to 2017 Operations
$ 1,642,026.41
848,766.00
1,767,607.45
848,766.00
$ 2,490,792.41
5,232,745.00
7,723,537.41
107 163.96
$ 2,616,373.45
$ 5,107,163.96
767 607.45
6,874,771.41
1,642,026.41
$ 5,232,745.00
57
EXHIBIT A-I6
BOROUGH OF RIVERTON
Federal and State Grant Fund
Schedule of Federal and State Grants Receivable
For the Year Ended December 3i, 2017
State Grants:
Clean Communities Grant
Alcohol Education Rehab
Recycling Tonnage Grant
Body Armor Grant
Drunk Driving Enforcement Grant
Green Communities
Burlington County Park Granl - 2014
Burlington County Park Grant - 2Ojs
NJ State Forestry Grant
Total State Grants
Federal Grants:
NJ Transportat¡on Trust Fund
Bullet Proof Vest
Total Federal Grants
Total Federal and State Grants
$
$
Balance
December 31
2016
125,000.00
1 25,000.00
20,000.00
270.000.00
9,248.00
9.248.00
s 279,248.00
Received
Transferred
From
Unappropriated
Reserves
Transferred
To
Unappropriated
Canceled
Balance
December 31
2017
Accrued
6,374.92
64.34
3,703.78
981 .1 9
664-75
1,548.75
$
$
6,374.92
64.34
7,301.83
I,383.45
$
$
$
('l
@
13,337.73
15.124.54
438.90
438.90
$
13,337.73 $
15,s63.44
98't .1 I
664.75
1,548.75
3,598.05
1,383.45
3,194.69
4,981.50
438.90
438.90
$
3,194.69 $
5,420.40
125,000.00
1 25,000.00
20,000.00
270,000.00
9,248.00
9.248.00
$
270,000.00 $
9,248.00
EXHIBIT A.I7
BOROUGH OF RIVERTON
Federal and State Grant Fund
Schedule of Reserve for Federal and State Grants - Unappropriated
For the Year Ended December 31,2017
Balance
December 31,
2016
$
Transfer From
Federal and
State Grant
Receivable
$
438.90 $
Realized
aS Revenue
2017
Balance
December 31,
2017
$
438.90
Federal Grants:
Bullet Proof Vest
Total Federal Grants
State Grants:
Body Armor Grant
Drunk Driving Enforcement Grant
Recycling Tonnage Grant
Green Communities
Total State Grants
Total Federal and State Grants
438.90
438.90
981 .1 I
664.75
I,383.45
981.19
664.75
1,383.45
3,598.05
3,598.05
1,548.75
1,548.75
3,194.69
4,981.50
3,194.69
4,981.50
$ 3,194.69 $
5,420.40 $
3,194.69 $
s,420.40
59
EXHIBITA-I8
BOROUGH OF RIVERTON
Federal and State crant Fund
Schedule of Reserve for Federal and State Grants - Appropriated
For the Year ended December 31, 2017
Ståte Grants:
Clean Communities Grant
Recycling Tonnage Grant
Drunk Dr¡v¡ng Enforcement Fund
Community Steward lncentive
Alcohol Educat¡on Rehabititation
Green Commun¡t¡es
Body Armor Grant
o)
Stormwater Grant
o
N.J. State Forestry Grant
Emergency Management Grant
Domestic V¡olence
Burlington County Park lmprovement - 2014
Burlington County Park lmprovement - 201S
Total State Grants
Federal Grants:
NJ Transportation Trust Fund
Motor Veh. Aggressive Driver Crack Down
Bullet Proof Vest Program
Total Federa¡ Grants
Total Federal and State Grants
Cash Disbursed
Encumbrances Payable
Totel
$
$
$
Balance
December 31,
201 6
Transfened
from
2017 Budget
AoDroDrietiÒn
Transfered
from
2017 Budget
40A.:4-87
Prior Year
Encumbrance
2,139.83
Disbursed
6,374.92
3,703.78
664.75
64.34
1,548.75
981.19
3,194.69
10.143.O4
$
3,194.69 $
10,143.04
$
$
5,550.87
2,408.65
1,000.16
2,9s0.29
7,500.00
$
Balance
December 31,
2017
Canceled
20,000.00
$
13.35
5,741.94
325.00
4,379.51
946.25
5,526.67
3,875.97
27,629j2
823.59
't37.04
I 2s,000.00
125.000.00
626.62
125,000.00
125.000.00
2,139.83
20.036.59
270 000 00
24.839.41
1 0,1 98.00
8,076.94
335.76
335.76
18,274.94
$
2,139.83 $
20,372.35 $
270.000.00 $
43.114.3s
$
20,372.35
$
20,372.35
824.O5
1,308.48
5,406.53
325.00
3,817.23
2,495.00
5,697.40
3,875.97
129.12
823.59
137.04
299.398.44
I 0, I 98.00
8,076.94
335.76
18.610.70
$
318,009.14
TRUST FUND
EXHIBIT B.I
BOROUGH OF RIVERTON
Trust Fund
Schedule of Cash - Treasurêr
For the Year Ended Deæmber 31, 2017
O)
N)
Balanæ Deæmber 31, 2016
Reæipts:
Dog L¡ænse Fees:
Municipal Liænses
State Reg¡stEt¡on Fees
Late Fees
l\4ariage Licenses lssued
Employee Contribut¡ons
Redempt¡on
Escrcw
Shãde T¡ee
Poliæ Outs¡de Serv¡æ
Dog Park
Unifom F¡re Safety
Prem¡ums
POAA Fees
Public Defender Fees
Payroll Deductions Payable
Net Payrcll
Due to Curent
lnlerest Eamed
Total Reæipts
D¡sbursements:
Expenditures Under RS4:19-15.f f
State Regìslration Fees
Employee Cla¡ms
Redempt¡on
Escrcw
Shade Tree
Pol¡ce Outside Serviæ
Dog Park
Premiums
Public Defender Fees
Development Fees
Payroll Deductions Payable
Net Payroll
Due to State of NJ
Due to Curent Fund
Total Dìsbu6ements
Balanæ Deæmber 31. 2017
Animal
Control
$ 2,3'r9.53
180.00
55.20
28.00
5.76
268.96
RegistEr of
Flex¡ble
Unemployment Trust
Trusl
Poliæ Forfeìted
Public
Development
Funds
Vital Statistics
Spend¡ng Compensation Other
premium p_Igpg6L04!EI4) POAA
Defender
Feês
Construction
pavrcll
$167,s18.25 $
162.44 $
929.02 $ 18,979.07 $ 37,567.29 S 2s,740.54 $ 3,240.s9 $
345.12 $
2ô6.97 $ 5,449.95 $ 56,171.14 $ 16,666.12
325.00
325.00
2,802.72
999.96
1,802.76
40,991.6E
40,991.68
15,853.25
15,853.25
2,775.00
2,775.00
30,060.00
30,060.00
'1,750.00
.t,750.00
3,500.00
3,500.00
36,500.00
36,500.00
4.00
4.OO
6,632.46
6,632.46
369,020.68
369,020.68
656,580.1 1
6s6,580.1 I
2,017.42
2,017.42
724.62
0.42
2.25
189.23
174.7E
84.58
8.13
0.84
1.08
7.54
140.58
1t9.19
1,169,540.94 325.42
1,OO2.21 1,991.99 95,104.71 36,5E4.56
8.13
4.A4
6,633.54
7.54
140.58 1,027,737.40
Total
Other Trust
1,025.46
1,025.46
40,991.68
7,480.25
8,000.00
14,040.00
1,600.00
22,900.00
6,800.00
4,896.00
363,627.27
656,5E0.1 I
348.00
300.00
46.00
¿7A AA
1,124,767.65
300.00
1,025.46
48.00
Payment ln
Lieu of
40,991.68
7,480.25
8,000.00
14.040.00
1,600.00
22,900.O0
6,800.00
4,896.00
363,627.27
656,580.1 1
-?##i
,xrooro
-
-
ô,800¡0 4^Er6oo -
',rd##
195.06
56.40
251.Æ
_$Le91.09_
EXHIBIT B-2
BOROUGH OF RIVERTON
Dog License Fund
Schedule of Reserve for Animal Control Fund Expenditures
For the Year Ended December 31, 20'17
Balance December 31, 2016
lncreased by:
2017 Dog License Fees Collected
Late Fees
Total
Decreased by:
Expenditures Under RS4:1 9-1 5.1 1
Due to Current Fund
Balance December 31, 2017
$
180.00
28.00
$ 259.42
208.00
195.06
467.42
195.06
$ 272.36
License Fees Collected
Year:
2015
2016
Total
$ 340.00
280.00
$ 620.00
63
EXHIBIT B-3
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Due to State of New Jersey
For the Year Ended December 31, 2017
Balance December 31, 2016
lncreased by: Marriage Licenses lssued
Subtotal
Decreased by:
Cash Disbursed to State of New Jersey
Canceled
Balance December 31, 2017
$
300.00
$
75.00
325.00
400.00
300.00
$
100.00
EXHIBIT B-4
Schedule of Payroll Deductions Payable
For the Year Ended December 31., 2017
Balance December 31 , 2016
lncreased by:
Payroll Deductions Received
Total
Decreased by:
Payroll Deductions Disbursed
Balance December 31 ,2017
$
2,655.00
369 020.68
371 .675.68
363 688.63
$
7,987.05
64
EXHIBIT B-5
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Tax Title Lien Payable
Forthe Year Ended December 31,2017
Balance December 31 , 201 6
lncreased by:
Tax Redemptions
Decreased by:
Payments
Balance December 31, 2017
$
6,564.31
40,991.68
47,555.99
$
EXHIBIT 8-6
Schedule of Reserve For Payment of Unemployment Claims
For the Year Ended December 31, 2017
Balance December 31 , 2016
lncreased by:
Employee withholdings
lnterest Earned
Decreased by:
Payments
Balance December 31 ,2017
$
1,864.12
189.23
$ 12,1 70.56
2,053.35
48.00
$ 14,175.91
EXHIBIT B-7
Schedule of Reserve For Flexible Spending Benefits
For the Year Ended December 31, 2017
Balance December 31 , 201 6
lncreased by:
Employee withholdings
Decreased by:
Payment of Flexible Spending Benefits
$
164.38
999.96
025.46
Balance December 31, 2017
65
$
138.88
EXHIBIT B-8
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Developer's Escrow Deposits
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by Receipts
Decreased by:
Cash Disbursed
Balance December 31, 2017
Subtotal
$ 66,228.85
18,'135.43
84,364.28
12,376.25
$ 71,988.03
EXHIBIT B-9
Schedule of Reserve For Tax Sale Premiums
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Premiums Collected
lnterest earned
Decreased by:
Payment of Premiums
Balance December 31 ,2017
Subtotal
$ 36,500.00
84.58
$ 29,340.54
36,584.58
65,925.12
22,900.00
$ 43,025.12
66
EXHIBIT B-10
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Shade Tree Gommission
For the Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Receipts
Decreased by:
Payments
Balance December 31, 2Q17
$
8,988.73
2,775.00
8,000.00
$
3,763.73
EXHIBIT B.I,I
Schedule of Reserve For Environmental Fund
Forthe Year Ended December 31,2017
Balance December 31,2017 and 2016
$
5,161.38
EXHIBIT B-I2
Schedule of Reserve For Veteran Affairs
For the Year Ended December 31,2017
Balance December 31,2017 and 2016
$
1,115.12
67
EXHIBIT B-13
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Public Defender
For the Year Ended December 31, 2017
Balance December 3'l , 2016
lncreased by:
Receipts from Municipal Court
Decreased by:
Payments
Balance December 31, 2017
Subtotal
Schedule of Reserve For Police Forfeited Propefi
For the Year Ended December 31,201.7
$
216.13
6,632.46
6,848.59
6,800.00
$
48.59
EXHIBIT 8.14
Balance December 31, 2016
lncreased by:
lnterest Earned
Balance December 31, 2017
$
3,240.59
8.13
$
3,248.72
EXHIBIT B-15
Schedule of Reserve For Compensated Absences
For the Year Ended December 31, 2017
Balance December 31 , 2017 and 201 6
$ 30,000.00
bõ
EXHIBIT B-16
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For POAA Funds
For the Year Ended December 31, 2017
Balance December 31 , 201 6
lncreased by:
Receipts from Municipal Court
lnterest Earned
Balance December 31, 2017
$
4.00
0.84
$
345.12
4.84
$
349.96
EXHIBIT B-17
Schedule of Reserve For Police Side Jobs
For the Year Ended December 31,2017
Bålance December 31, 2016
lncreased by:
Receipts
Decreased by:
Payments made
Balance December 31, 2017
Subtotal
$
30,360.00
30,060.00
14,040.00
$ 16,020.00
69
EXHIBIT B-18
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Dog Park
For the Year Ended December 3'l, 2017
Balance December 31 , 201 6
lncreased by:
Contributions
Decreased by:
Payments
Balance December 31 ,2017
Subtotal
$
750.00
1,750.00
1,600.00
$
150.00
EXHIBIT B-19
Schedule of Reserve For Uniform Fire Safety
For the Year Ended December 31, 2017
Balance December 31 , 2016
lncreased by:
Receipts
Decreased by:
Payments made
Balance December 31, 2017
Subtotal
$
3,500.00
3,500.00
$
3,500.00
70
GENERAL CAPITAL FUND
EXHIBIT C.2
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Cash - Treasurer
For the Year Ended December 31, 2017
Balance December 31, 2016
Receipts:
Current Fund Budget Appropriation -
Capital lmprovement Fund
Grants Receivable
Bond Anticipation Notes
Premium on Sale of Bond Anticipation Note
Due from Current Fund
Due to Current Fund
Total
Disbursements:
I mprovement Authorizations
Bond Anticipation Notes
Due to Current Fund
Balance December 31, 2017
$
17,803.00
437,750.00
1,730,672.00
11,580.00
136,557.31
448.63
$
27,942.95
2,334,810.94
2,362,753.89
428,442.53
't,507,425.00
395.92
936,263.45
1,
$
426,490.44
72
EXHIBIT C-3
BOROUGH OF RIVERTON
General Capital Fund
Analysis of General Gapital Gash and lnvestments
For the Year Ended December 31, 20'17
Fund Balance
Capital lmprovement Fund
Due from Current Fund
Due to Current Fund
Reserve for Debt
lmprovement Authorizations:
Ordinance
Number
2002-4
2007-3
2010-4
2011-8
2013-5
2014-B
2015-2
2016-4
2017-06
Various lmprovements
Various lmprovements:
Purchase of Police Equipment
2007 Road Program
Office Equipment
Various lmprovements
Various lmprovements
Various lmprovements
Multi-purpose:
Police Vehicles
Borough Roof and Police remodeling
Various Memorial Park lmprovements
Acquisition of Public Works Equipment
Acquisition of Fire Truck
Multi-purpose:
lmprovements to R¡verton Park
Road lmprovements
Acquisition of Street Signs
Acquisition of Public Works Equipment
Sewer System-Wide lmprovements
Multi-purpose:
Acquisition of Computer Hardware
Acquisition of Police Weapons
Acquisition of Fire Equipment
Multi-purpose:
Acquisition of Street Safety Signs
Road lmprovements
Acquisition of a Police Sport Utility Vehicle
Acquisition of Emergency Back-up Generator
Acquisition of Fire Equipment
Total
256.76
18,478.88
(20,248.55)
52.71
11,580.00
1,211.66
741.17
18,166.79
3,681.51
867.90
29,780.00
215.79
471.30
501.05
5,873.53
1,787.00
(2,915.3e)
14,59 1 .05
10,000.00
187.00
17,830.72
1,099.27
306.60
41,500.00
6,828.49
't66,645.20
39,000.00
45,500.00
12.500.00
$
426,490.44
$
t3
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Deferred Charges to Future Taxation - Unfunded
For the Year Ended December 31, 2017
EXHIBIT C.4
Analysis of Balance
December 31
2017
ExÞenditures
Unexpended
lmprovement
Authorization
22,732.10
65,636.32
34,579.90
23,475.OO
22,732.10 $
123,691.22
$
646,333.22
29,780.00
215.79
8,632.88
126,4A3.77
42,905.87
314,623.69
522,642.O0
Ordinance
Number
2009-5
2010-4
2011-8
2013-5
i
2013-7
2014-8
2015-2
20164
2017-06
lmprovement Descriotion
2009 Road Program
Various Capital lmprovements
Various Capital lmprovements
Var¡ous Capital lmprovements
Upgrades to Sewer System
Various Cap¡tal lmprovements
Var¡ous Capital lmprovements
Various Capital lmprovements
Various Capital lmprovements
Balance
December 31,
2016
$
136,500.00
201,900.00
55,250.00
57,475.OO
47,500.00
797,704.OO
476,971.OO
232,750.OO
2017
Authorizations
Paid by
Budoet
$
70,863.68
27,588.00
15,000.00
5,000.00
5,000.00
1 15,000.00
Balance
Decèmber 3'1,
2017
$
65,636.32
174,312.OO
40,250.00
52,475.O0
42,500.00
682,704.00
476,971.O0
232,750.00
338.247.OO
Financed by
Bond
Aniticpation
Notes
$
$
$
$
1 17,000.00
40,250.00
29,000.00
42,500.00
682,704.00
476,971.0O
232,750.OO
338,247.OO
338,247.OO
$ 2,006,050.00 $
338,247 .OO $
233,451.6S $ 2.105.A45.32 $
1.959.422.00 $
lmprovement Authorizations - Unfunded
Less - Unexpended Proceeds from Bond
Anticipation Notes:
Ordinance 201 l-8
Ordinance 201 3-5
Ordinance 2014-8
Ordinance 201 5-2
Ordinance 2016-4
Ordinance 2017-6
Total
$
123,691.22
EXHIBIT C-5
BOROUGH OF RIVERTON
GeneralGapital Fund
Statement of Grants Receivable
Forthe Year Ended December 31,2017
Balance December 31, 2016
lncreased by:
Department of Transportation - Elm Terrace
Decreased by:
Cash received
Canceled
Balance December 31, 2017
Analysis of Balance
Burlington County Park Development Grant - Memorial Park
Department of Transportation - 2015 Road lmprovements
Department of Transportation - 2017 Road lmprovements
$
437,750.00
125,000.00
$
475,000.00
196 000.00
671,000.00
562,750.00
$
108,250.00
10,500.00
48,750.00
49,000.00
_$__198,25099_
$
75
EXHIBIT C-6
BOROUGH OF RIVERTON
General Captial Fund
Schedule of Bond Anticipation Notes
For thè Year Ended Dècember 31, 2017
Date of
lssue of
Original
Note
Ordinance
Number
2010-4
20'lu
201V
2011-8
2011-8
2013-5
2013-5
2013-7
2013-7
201+8
201+8
2015-02
2015-O2
2016-04
2016-04
Date of
Date of
lssuê
Maturitv
10t12t06
10t10116
10110t17
9/8/16
9t8t17
9t7t18
¡nterest
Rate
Balance
December 3 l
2016
lncreased
Decreased
70,863.ô8
14,588.00
1 30,000.00
$
1,621,175.O0
338,247.00
$
Balance
December 31
2017
lmDrovêment Description
2009-5 2009 Road Program
Nit.
Nir.
Nit.
N¡I,
N¡I,
Nit.
Nit.
Nit.
Nit.
Nit.
70,863.68
14,588.00
130,000.00
!
O)
Various Capital lmprovements
Various Capital lmprovements
Various Capital lmprovements
Various Capital lmprovements
Various Capital lmprovemènts
Various Cap¡tal lmprovêments
Various Cap¡tal lmprovements
Sewer System Upgradês
Sewer System Upgrades
lnvestment in Curent Fund
Various Capital lmprovements
Various Capital lmprovements
Various Capital lmprovements
Various Capital lmprovêments
10t1uo6
12t14t'16
'12t14t16
10t10t16
12t14t'16
12t14t17
10110t17
1414t17
1U14t't8
1U1U11
12t14t't6
'l0t10t't6
1i,14t17
'tol10t17
12t14t1a
12114t16
12t'14t16
12114t16
121't4t17
12114117
12114t18
12t14t16
12t14t16
'12t14t16
12t14t17
12t14t17
12114nA
9tgt14
919114
918116
9t8t'17
9t8t17
9nn8
1.O9%
2.25o/o
9t8t'ls
9/8/1 5
9/8/16
9lgt't7
9ßt17
9t7t18
1.09%
2.25Vo
9/8/16
9t8t16
9/8/tô
9t8t17
9t8t'17
9nn8
1.09%
2.25%
1 1 7,000_00
1 1 7,000.00
55,250.00
55,250.00
40,250.00
40,250.00
34,000.00
34,000.00
29,000_00
29,000.00
47,500.00
47,500.00
42.500.00
42.500.00
3s2,201.68
228,750.OO
352,201.68
228,750.OO
797,704.OO
797,704.OO
682,704.00
682,704.OO
476,971.00
476,971.00
476,971.00
476,971.00
232,750.00
232,750.OO
232,750.OO
232,750.OO
338,247.OO
338.247.OO
$
1.859.626.68 $
1.959.422.00 $
1.859.626.68 $
1.959.422.00
Various Capital lmprovements
Various Capital lmprovements
2017-06 VariousCapitallmprovements
2.250/.
Renewal
Pa¡d by Budget
lssued for Cash
1,621,175.00
238,451.68
N¡|. = Held as an investment in the Cunent Fund
s
1.959.422.00 $
1.859.626.68
BOROUGH OF RIVERTON
General Cap¡tel Fund
Schedule of lmprovement AuthorizatÌons
For thè Year Ended December 31, 20lz
2017 Authorizat¡ons
EXHIBIT C-7
Balance
December 31, 2017
Funded
Unfunded
Ordinance
Number
lmorovement Desdiotioñ
20024
Multi-purpose:
c. Repaiß to Seawall
2007-3
Multi-purpose:
a. Purchase of Police Equipment
b.2007 Road PrcgEm
d. Offiæ Equipment
2009-5
2009 Road Pogram
Multi-purpose;
c. lmp@vements to Park
Multi-purpose:
c. 201 1 Road ProgGm
Mult¡-purpose:
a. Purchase of Loader Buckel
b. lmps and UpgEdes to WW Treatment Tank
c. Acq. of Equ¡pment for Public Works Dept.
2014-8
Muit¡-purpose:
a. Poliæ Veh¡cles
b. Borough Rool'and Police Remodel¡ng
c. Road lmprcvements to Elm Teraæ
d. Various MemoÍal Park lmprovements
e. Acqu¡sition of Publ¡c Works Equipment
f. Acqu¡sit¡on of Fire Truck
FoMard
2'17.15
23,189.97
283.67
471.30
501.05
5,873.53
1,747.OO
Ordinance
Amount
Balance
December 31, 2016
Funded
Unfunded
Cap¡tal
lmprcvement
Fund
GÊnt
Rece¡vable
Defered
Charges
To Future
Taation
Unfunded
Paid
of
Date
07t11lo2
o5t21to7
$ 16,000.00
153,800.00
200,000.00
201,875.00
50,000.00
15,500.00
30,000.00
15,000.00
68,000.00
38,000.00
497,700.00
125,000.00
43,620.00
450,000.00
Charoed
Canceled
125,000.00
$
1,211.66 $
$ 1,211.66 $
$
$
$
741.17
18,316.79
3,68'1.51
150.00
741.17
'18,166.79
3,681.51
1Z12tO9
07t14t10
\ zoro+
201'l-a
2013-5
65,636.32
34,579.90
29,780.00
ô5,636.32
34,579.90
29,780.00
06/08/1 I
05/08/'1 3
c6,t11t14
125,000.00
217.15
23,149.97
243.67
471.30
501.05
5,873.53
1,787.OO
$ 148,951.13 $ 162,319.89
$
-
't50-00
s 125,000.00 $ 23,801.13 $ 162,319.89
BOROUGH OF RIVERTON
General Capital Fund
Schedule of lmprovement Author¡zat¡ons
For the Year Ended December 31, 2017
2017 Authorizat¡ons
EXHIBIT C-7
Ba¡ance
December 31, 2017
Funded
Unfunded
$ 23,801.13 $ 162,319.89
Ord¡nanæ
Number
Ord¡nance
Date
Amount
Balance
December 31, 2016
Funded
Unfunded
$ 148,951.13 $ 162,319.89 $
Capital
lmprcvement
Fund
Grant
Reæivable
Defered
Charges
To Future
Taxation
Unfunded
Paid
of
Charqed
$
150.00
lmprovement Descript¡on
Continued
Mult¡-purpose:
a. Acquisition of Computer Equ¡pment
b. lmprcvemenls to Riverton Park
c. Road lmprovements
d. Acqu¡sit¡on of Street Signs
e. Acquisit¡on of Public Works Equipment
f. Sewer System-W¡de lmprovements
Multj-purpose:
a. Acquisition of Publ¡c Works Equipment
b. Acquisition of Computer Hardware
c. Aqusit¡on of ã Police Sport Utility Veh¡cle
d. Acqusition of Poliæ weapons
e. Acqusitjon of F¡re Equlpment
Multì-purpose:
a. Acquisit¡on of Street Safety Signs
b. Road lmpÍovements
c. Aqus¡tion of a Pol¡æ Sport Ut¡lity Vehicle
d. Acqus¡tion ol Emergency Back-Up Generator
e. Acqus¡tion of Fìre Equipment
Total
$
Canceled
$ 'r25,000.00
201í2
20't6-4
2017-06
05/06/15
06/08n6
7t12t2017
$ 2,400.00
287,500.00
366.675.00
10,000.00
210,500.00
50,000.00
1 1,000.00
444,050.00
39,000.00
45,500.00
12,500.00
59,698.78
500.00
105.00
5,000.00
35,625.00
71,09'1.05
9,500.00
187.00
45,500.00
a7,739.17
7.750.00
7,584.61
63,341.05
9,500.00
't87.00
17,430.72
500.00
27,669.24
-J
@
97,900.00
6,000.00
39,000.00
2,1 00.00
100,000.00
2,099.27
11,264.37
1,995.00
95,000.00
1,000.00
11,264.37
'1,793.40
58,500.00
1,099.27
306.60
41,500.00
550.00
12,403.OO
1,950.00
2,275.O0
625.00
196,000.00
10,450.00
235.647.00
37,050.00
43,225.OO
11,875.00
4,'171.51
224,404.80
6,828.49
215,645.20
37,050.00
43,225.OO
11,875.00
1,950.00
2,27s.OO
625 00
_þ_4!254p1 _$l9lÉ!]!8 _$_l_2.q9l.09- _S,_l-99!99 09_ _$__999¿32 09_ _9__4nl42.53_ _$__1?9!99!9_ _$___?9J_ÞlJ_9_ _$__919¿9?.89_
Cash D¡sbu6ed
_9__428,442.53-
EXHIBIT G-8
BOROUGH OF RIVERTON
General Capital Fund
Statement of Capital lmprovement Fund
For the Year Ended December 31,20'17
Balance December 31 ,2016
lncreased by:
201 7 Budget Appropriation
Decreased by:
Appropriated to Finance lmprovement Authorization
Balance December 31 ,2017
$
256.76
17,803.00
18,059.76
17,803.00
$
256.76
79
BOROUGH OF RIVERTON
General Capital Fund
Statement of Bonds and Notes Authorized but not lssued
For the Year Ended Decem ber 31 , 2017
Bond
Anticipation
Notes
lssued
EXHIBIT C-9
Balance
December 31,
2017
2017
Authorizations
338,247.O0
$
338,247.00
Ordinance
Number
2009-5
2010-4
201 3-5
2017-6
lmorovement Description
2009 Road Program
Multi-Purpose
Multi-Purpose
Multi-Purpose
Total
Balance
December 31,
2016
$
65,636.32
$
57,312.00
23,475.00
$
146,423.32
$
$
65,636.32
57,312.00
23,475.00
338,247.O0
$ 338,247.00 $
146,423.32
oco
0t
PUBLIC ASSISTANCE FUND
EXHIBIT D-1
BOROUGH OF RIVERTON
PUBLIC ASSISTANCE FUND
Schedule of Cash - Treasurer
For the Year Ended December 31, 2017
Balance December 3'l , 2016
lncreased by Receipts
lnterest Earned
Total
Decreased by Disbursements
Balance December 3'1, 2017
P.A.T.F
I
$
731.96
1.86
733.82
$
733.82
82
Schedule of Findings and Recommendations
For the Year Ended December 31,2017
BOROUGH OF RIVERTON
PART II
BOROUGH OF RIVERTON
SCHEÐULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31,2017
Secfion 1 - Summary of Auditor's Resulús
Financial Statement Section
Type of auditor's report issued:
lnternal control over financial reporting:
1) Material weaknesses identified?
2) Were reportable conditions identified that were
not considered to be material weaknesses?
Noncompliance material to financial statements noted?
Federal Awards
A Federal Single Audit was not required
State Awards
A State Single Audit was not required
Unmodified
yes
X
no
X
yes
none reported
yes
X
no
84
BOROUGH OFRIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31,2017
Schedule of Financial Statement Findings
This section identifies the reportable conditions, material weaknesses, and instances of noncompliance related to the
financial statements that are required to be reported in accordance with Government Auditing Standards and with
requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey.
Finding #2017-l
Condition:
Bank reconciliations were not completed on a monthly basis during the year
Criteria or specific requirement:
In accordance with maintaining an internal control environment that is effective in the prevention and
identihcation of potential financial statement misstatement and /or misclassifîcation, the Borough should
complete bank reconciliations on a monthly basis.
Context:
Bank reconciliations were not prepared from the first quarter of 2017
Effect
Potential errors which could have a negative impact on the Borough's financial position could develop and not
be detected in a timely manner.
Cause:
Unreconciled differences existed in the first quarter of 2017 which impeded subsequent reconciliations.
Recommendation:
That all bank account reconciliations are completed on a monthly basis.
View of Responsible Official and Planned Corrective Action:
The responsible offrcials agree with the finding and will address the matter as part of the corrective action plan.
QÃ
BOROUGH OF RIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31,2017
Schedule of 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 Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) and New Jersey Circular l5-08-OMB.
FEDERAL AWARDS
A federal single audit was not required.
STATE A\ilARDS
A state single audit was not required.
B6
BOROUGH OF RIVERTON
Summary Schedule of Prior Year Audit Findings
And Recommendations as Prepared by Management
This section identihes the status ofprior year findings related to the financial statements and federal and state grant
awards that are required to be reported in accordance with Government Auditing Standards and New Jersey OMB's
Circular l5-08.
FINANCIAL STATEMENT FINDINGS
Finding #2016-l
Condition:
Several expenditures were incorrectly charged during the year
Current Status:
This condition has been corrected.
FEDERAL AWARDS
A Federal Single Audit was not required.
STATE AWARDS
A State Single Audit was not required.
ót
OFFICIALS IN OFFICE AND SURETY BONDS
The following offìcials were in offìce at December 31,2017
Name
Title
Àmount of
Bond
Name of
Corporate
Surety
(B)
(B)
(B)
(B)
(A)
(A)
Suzanne Cairns Wells
Michael Kinzler
Armand Bianchini
William Corbi
Renee Azelby
Kirk Fullerton
Joseph Creighton
Michelle Hack
Dawn Bass
Dolores Rosso
Nicole Chicone-Shively
Roger Fort
Mary Lodato
James Duda
Alaimo Associates
Tom Coleman
Mayor
President ofCouncil
Councilman
Councilman
Councilwoman
Councilman
Councilman
Borough Clerk and Registrar of
Vital Statistics
Chief Financial Officer
Tax Collector
Finance Clerk and Deputy Registrar
Construction Code Official
Code Enforcement and Zoning Official
Assessor
Engineer
Solicitor
35,000
200,000
I 75,000
175,000
10,000
10,000
fu þ/-
INVERSO&STEWART, LLC
Certifi ed Public Accountant
$
All Bonds were examined and properly executed.
(A) Selective Insurance Company - Employee Dishonesty Coverage
(B) Selective Insurance Company - Separate Surety Bond.
ACKNOWLEDGMENT
I express my appreciation for the assistance and courtesies extended to the audit team by the Borough Officials
during the course ofour audit.
Respectfully submitted,
Robert P. Inverso
Certifi ed Public Accountant
Registered Municipal Accountant
May 31,2018
88
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