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Executive Summary
The Borough of Riverton's audit report for the fiscal year ending December 31, 2018, prepared by Inverso & Stewart, LLC, presents the financial statements of the various funds and account groups. The audit was conducted in accordance with generally accepted auditing standards and requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The report includes an independent auditor's report, reports on internal control and compliance, financial statements, and notes to the financial statements. The auditor expressed an adverse opinion on the financial statements' compliance with U.S. Generally Accepted Accounting Principles (GAAP) but offered an opinion that the statements present fairly the assets, liabilities, reserves, and fund balance on a regulatory basis, in accordance with accounting principles prescribed by the Division of Local Government Services.
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--- Document: 2018 Riverton Borough Audit Report Document ---
BOROUGH OF RIVERTON
County of Burlington
Report of Audit of Financial Statements
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
COUNTY OF BURLINGTON
TABLE OF CONTENTS
PART I
Exhibits
Page
Independent Auditor's Report
2
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
Accordance with Government Auditing Standards
5
Financial Statements
Current Fund:
Statement of Assets, Liabilities, Reserves and Fund Balance --
- Regulatory Basis
A
7
Statement of Operations and Changes in Fund Balance
- Regulatory Basis
A-1
9
Statement of Revenues - Regulatory Basis
A-2
10
Statement of Expenditures - Regulatory Basis
A-3
12
Trust Fund
Statement of Assets, Liabilities, Reserves and Fund Balance --
B
17
- Regulatory Basis
General Capital Fund
Statement of Assets, Liabilities, Reserves and Fund Balance --
- Regulatory Basis
C
18
Statement of Operations and Changes in Fund Balance --
C-1
19
- Regulatory Basis
Public Assistance Fund
Statement of Assets, Liabilities and Reserves and Fund Balance -
D
20
- Regulatory Basis
General Fixed Assets Account Group
Statement of General Fixed Assets Group of Accounts
E
21
Notes to Financial Statements
22
Current Fund
Statement of Cash - Collector/Treasurer
A-4
53
Schedule of Taxes Receivable and Analysis of Property Tax Levy
A-5
54
Schedule of Revenue Accounts Receivable
A-6
55
Schedule of Sewer Rent Receivable
A-7
56
Schedule of Due State of New Jersey -
A-8
57
Senior Citizen and Veterans' Deductions
Statement of 2017 Appropriation Reserves and Reserve for Encumbrances
A-9
58
Schedule of Tax Overpayments
A-10
59
Schedule of Prepaid Taxes
A-11
59
Schedule of Sewer Rent Overpayments
A-12
60
Schedule of Due to State of NJ - UCC Fees
A-13
60
Schedule of County Taxes Payable
A-14
61
Schedule of Local District School Tax Payable
A-15
62
- a -
Part I (Continued):
Federal and State Grant Fund
Schedule of Federal and State Grants Receivable
A-16
63
Schedule of Reserve for Federal and State Grants - Unappropriated
A-17
64
Schedule of Reserve for Federal and State Grants - Appropriated
A-18
65
Trust Fund
Schedule of Cash - Treasurer
B-1
67
Schedule of Reserve for Animal Control Fund Expenditures
B-2
68
Statement of Due to the State of NJ - Marriage Licenses
B-3
69
Statement of Payroll Deductions Payable
B-4
69
Schedule of Tax Title Lien Payable
B-5
70
Schedule of Reserve for Unemployment Claims
B-6
70
Schedule of Reserve for Flexible Spending Benefits
B-7
70
Schedule of Reserve for Developer's Escrow Deposits
B-8
71
Schedule of Reserve for Tax Sale Premiums
B-9
71
Schedule of Reserve for Shade Tree Commission
B-10
72
Schedule of Reserve for Environmental Fund
B-11
72
Schedule of Reserve for Veteran Affairs
B-12
72
Schedule of Reserve for Public Defender
B-13
73
Schedule of Reserve for Police Forfeited Property
B-14
73
Schedule of Reserve for Compensated Absences
B-15
73
Schedule of Reserve for POAA Funds
B-16
74
Schedule of Reserve for Outside Police
B-17
74
Schedule of Reserve for Dog Park
B-18
75
Schedule of Reserve for Uniform Fire Safety
B-19
75
General Capital Fund
Schedule of Cash - Treasurer
C-2
77
Analysis of General Capital Cash and Investments
C-3
78
Schedule of Deferred Charges to Future Taxation - Funded
C-4
79
Schedule of Deferred Charges to Future Taxation - Unfunded
C-5
80
Statement of Grants Receivable
C-6
81
Schedule of General Serial Bonds
C-7
82
Schedule of Bond Anticipation Notes
C-8
83
Schedule of Improvement Authorizations
C-9
84
Statement of Capital Improvement Fund
C-10
86
Statement of Bonds and Notes Authorized But Not Issued
C-11
87
Public Assistance Fund
Schedule of Cash - Treasurer
D-1
89
PART II
Schedule of Findings and Recommendations
Schedule of Findings and Questioned Costs
91
Schedule of Financial Statement Findings
92
Schedule of Federal Awards and State Financial Assistance Findings
93
Summary Schedule of Prior Year Audit Findings
94
Officials in Office and Surety Bonds
95
Acknowledgment
95
-b-
BOROUGH OF RIVERTON
PART I
Report of Audit of Financial Statements
For the Year Ended December 31, 2018
INVERSO & STEWART, LLC
Certified Public Accountants
651 Route 73 North, Suite 402
-Member of-
Marlton, New Jersey 08053
American Institute of CPAs
(856) 983-2244
New Jersey Society of CPAs
Fax (856) 983-6674
E-Mail: rinverso@iscpasnj.com
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and
Members of the Borough Council
Borough of Riverton
County of Burlington
Riverton, New Jersey
Report on the Financial 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, 2018 and
2017, 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, 2018 and the related notes to the financial statements,
which collectively comprise the Borough’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the
financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of
New Jersey. Management is also responsible for the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
My responsibility is to express opinions on these financial 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 Standards, 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 of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, 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 Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 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 1
and accounting principles generally accepted in the United States of America, although not reasonably determinable, are
presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In 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, 2018 and 2017, or the results
of its operations and changes in fund balance for the years then ended.
Opinion on Regulatory Basis of Accounting
In my opinion, the financial statements referred to previously present fairly, in all material respects, the 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, 2018 and 2017, and the results of its operations and changes in fund balance –
regulatory basis of such funds for the years then ended, and the revenues - regulatory basis, expenditures - regulatory
basis of the various funds, and general fixed assets, for the year ended December 31, 2018 in conformity with accounting
principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey as described in Note 1.
Emphasis of Matter
As discussed in Note 9 to the financial statements, the Borough of Riverton implemented Governmental Accounting
Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions during the year ended December 31, 2018. My opinions are not modified with respect to this matter.
Other Information
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 financial 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
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, I have also issued my report dated July 19, 2019 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 internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Borough of Riverton’s internal control over financial reporting.
Respectfully submitted,
INVERSO & STEWART, LLC
Certified Public Accountants
Robert P. Inverso
Certified Public Accountant
Registered Municipal Accountant
Marlton, New Jersey
July 19, 2019
4
INVERSO & STEWART, LLC
Certified Public Accountants
651 Route 73 North, Suite 402
-Member of-
Marlton, New Jersey 08053
American Institute of CPAs
(856) 983-2244
New Jersey Society of CPAs
Fax (856) 983-6674
E-Mail: rinverso@iscpasnj.com
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 Community 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, 2018,
and the related notes to the financial statements, which collectively comprise the Borough’s basic financial statements,
and have issued my report thereon dated July 19, 2019. 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 accounting prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
Internal Control Over Financial Reporting
In planning and performing my audit of the financial statements, I considered the Borough of Riverton’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing 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 internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during my audit I did not identify any deficiencies in internal control that I consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
5
Compliance and 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 no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards or audit requirements as prescribed by the
Division of Local Governments Services, Department of Community Affairs, State of New Jersey.
Purpose of this Report
The purpose of this report is solely to describe the scope of 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 internal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards and audit
requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey in considering the Borough’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Respectfully submitted,
INVERSO & STEWART, LLC
Certified Public Accountants
Robert P. Inverso
Certified Public Accountant
Registered Municipal Accountant
Marlton, New Jersey
July 19, 2019
6
EXHIBIT A
BOROUGH OF RIVERTON
Current Fund
Statement of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2018 and 2017
Reference
2018
2017
ASSETS
Regular Fund:
Cash - Treasurer
A-4
3,040,739.90
$
3,027,818.06
$
Cash - Collector's Change Fund
120.00
120.00
Investments - Bond Anticipation Notes
C-9
228,750.00
Total
3,040,859.90
3,256,688.06
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes Receivable
A-5
137,903.63
142,792.75
Revenue Accounts Receivable
A-6
5,147.44
5,943.38
Sewer Rent Receivable
A-7
30,492.32
26,973.88
Due from Animal Control Fund
B
2,104.13
2,064.67
Due from Trust Other Fund
B
37,839.45
37,519.05
Due from Capital Fund
C
11,738.11
52.71
Total
225,225.08
215,346.44
Total Regular Fund
3,266,084.98
3,472,034.50
Federal and State Grant Fund:
Cash - Treasurer
A-4
1,089.43
1,222.20
Federal and State Grants Receivable
A-16
64,248.00
9,248.00
Due from Current Fund
A
14,464.55
14,464.55
Due from Capital Fund
C
23,600.00
23,600.00
Total Federal and State Grant Fund
103,401.98
48,534.75
Total
3,369,486.96
$
3,520,569.25
$
(Continued)
7
EXHIBIT A
BOROUGH OF RIVERTON
Current Fund
Statement of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2018 and 2017
Reference
2018
2017
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Liabilities:
Appropriation Reserves
A-3
238,532.79
$
216,942.39
$
Reserve for Encumbrances
A-3
44,877.68
57,198.78
Tax Overpayments
A-10
26,710.77
23,850.30
Prepaid Taxes
A-11
55,041.00
398,471.30
Sewer Rent Overpayments
A-12
1,897.24
620.63
Prepaid Sewer
6,623.14
Due from Federal and State Grant Fund
A
14,464.55
14,464.55
Due to Trust - Other Funds
B
30,000.00
30,000.00
Due to Capital Fund
C
20,248.55
20,248.55
Due to State of NJ - Construction Code Fees
A-13
579.43
851.93
Due County for Added Taxes
A-14
1,527.33
1,733.31
Due to State of N.J. for Senior Citizen and
Veteran Deductions
A-8
500.00
750.00
Local District School Tax Payable
A-15
1,847,748.41
1,767,607.45
Total Liabilities
2,282,127.75
2,539,362.33
Reserve for Receivables and Other Assets
A
225,225.08
215,346.44
Fund Balance
A-1
758,732.15
717,325.73
Total Regular Fund
3,266,084.98
3,472,034.50
Federal and State Grant Fund:
Unappropriated Reserves
A-17
438.90
5,420.40
Appropriated Reserves
A-18
102,963.08
43,114.35
Total Federal and State Grant Fund
103,401.98
48,534.75
Total
3,369,486.96
$
3,520,569.25
$
The accompanying Notes to Financial Statements are an integral part of this statement.
8
EXHIBIT A-1
BOROUGH OF RIVERTON
Current Fund
Statement of Operations and Changes in Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2018 and 2017
2018
2017
Revenue and Other Income Realized:
Fund Balance Utilized
185,000.00
$
150,000.00
$
Miscellaneous Revenue Anticipated
1,016,890.87
1,004,528.39
Receipts from Delinquent Taxes
140,615.31
154,092.24
Receipts from Current Taxes
8,442,600.00
8,280,944.02
Nonbudget Revenues
41,223.91
21,989.22
Other Credits to Income:
Unexpended Prior Year Appropriation Reserves and Encumbrances Payable
60,642.64
45,743.81
Prior year overpayments cancelled
2,723.38
Prior year receivable collected
44,400.00
Total Revenue and Other Income Realized
9,886,972.73
9,704,421.06
Expenditures
Operations Within "CAPS":
Salaries and Wages
1,005,329.48
1,001,909.57
Other Expenses
1,572,559.52
1,599,256.43
Deferred Charges and Statutory Expenditures Within "CAPS"
179,555.00
175,017.00
Operations Excluded from "CAPS":
Other Expenses
82,385.28
22,337.73
Capital Improvements
27,137.00
17,803.00
Municipal Debt Service Excluded from "CAPS"
267,690.12
254,882.61
Local District School Tax
5,393,027.00
5,232,745.00
County Taxes
1,119,523.58
1,113,451.85
Due County for Added Taxes
1,527.33
1,733.31
Prior Year Veteran/Senior Citizen
250.00
Interfund Loans Made
11,582.00
1,610.00
Total
9,660,566.31
9,420,746.50
Statutory Excess in Fund Balance
226,406.42
283,674.56
Fund Balance January 1
717,325.73
583,651.17
Total
943,732.15
867,325.73
Decreased by Utilization as Anticipated Revenue
185,000.00
150,000.00
Balance December 31
758,732.15
$
717,325.73
$
The accompanying Notes to Financial Statements are an integral part of this statement.
9
EXHIBIT A-2
BOROUGH OF RIVERTON
Current Fund
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2018
SPECIAL
EXCESS
BUDGET
NJS 40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
185,000.00
$
-
$
185,000.00
$
-
$
Miscellaneous Revenues:
Licenses - Other
1,200.00
941.00
(259.00)
Fees and Permits - Other
1,200.00
1,650.00
450.00
Fines and Costs
Municipal Court
97,000.00
72,896.58
(24,103.42)
Interest and Costs on Taxes
35,000.00
36,962.98
1,962.98
Interest on Investments and Deposits
2,500.00
15,921.94
13,421.94
Cell Tower Rental Fees
34,000.00
34,810.32
810.32
Sewer Rent Fees
429,500.00
440,379.81
10,879.81
Payments in Lieu of Taxes
9,000.00
19,596.96
10,596.96
Comcast Fees
10,500.00
11,784.68
1,284.68
Park Fees
3,550.00
3,500.00
(50.00)
Energy Receipts Taxes
230,577.00
230,577.00
Consolidated Municipal Property Relief Act
Uniform Construction Code Fees
25,000.00
60,986.52
35,986.52
Uniform Fire Safety Act
5,000.00
8,417.80
3,417.80
Reserve for Debt Service
11,580.00
11,580.00
Miscellaneous Revenues Offset with Appropriations:
Clean Communities
6,098.72
6,098.72
Drunk Driving Enforcement Fund
366.16
366.16
Recycling Tonnage Grant
3,598.05
3,598.05
Bulletproof Vest
438.90
438.90
Burlington County Park
55,000.00
55,000.00
Body Armor
1,383.45
1,383.45
Total
956,027.40
6,464.88
1,016,890.87
54,398.59
Receipts from Delinquent Taxes
130,000.00
140,615.31
10,615.31
Amount to be Raised by Taxes for Support of
Municipal Budget - Local Tax for Municipal Purposes
2,065,218.37
2,103,826.46
38,608.09
Budget Totals
3,336,245.77
6,464.88
3,446,332.64
103,621.99
$
Nonbudget Revenues
41,223.91
Total
3,336,245.77
$
6,464.88
$
3,487,556.55
$
(Continued)
10
EXHIBIT A-2
BOROUGH OF RIVERTON
Current Fund
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2018
Analysis of Realized Revenue
Allocation of Current Tax Collections:
Revenue from Collections
8,442,600.00
$
Allocated to School and County Taxes
6,514,077.91
Balance for Support of Municipal Budget Appropriations
1,928,522.09
Add Appropriation - Reserve for Uncollected Taxes
175,304.37
Amount for Support of Municipal Budget Appropriations
2,103,826.46
$
Receipts from Delinquent Taxes:
Delinquent Tax Collections
140,615.31
$
Licenses - Other:
Registrar of Vital Statistics
941.00
$
Other
Total
941.00
$
Fees and Permits - Other:
Street Opening Permits
400.00
$
Vacant Property Registration Fees
1,250.00
Total
1,650.00
$
Miscellaneous Revenue Not Anticipated:
Site Plans
1,000.00
$
Application Fees
200.00
Recycling
644.00
Tire Removal
110.00
Towing
300.00
Fence/Sign Permits
1,492.00
Cat Licenses
33.00
Admin Fee - SC & Vet
520.00
Police Reports
418.00
Sewer Penalties
6,178.27
Sale of Property
1,237.35
Prior Year Void Checks
4,763.43
DMV Inspections
300.00
Other Refunds
19,259.02
Snow Removal
3,967.50
Miscellaneous
801.34
Total
41,223.91
$
The accompanying Notes to Financial Statements are an integral part of this statement.
11
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2018
Appropriations
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
GENERAL APPROPRIATIONS:
Operations Within "CAPS":
General Government
Mayor and Council
Other Expenses
3,000.00
$
3,000.00
$
1,948.57
$
165.85
$
885.58
$
-
$
Borough Clerk
Salaries and Wages
62,525.00
62,525.00
60,120.10
2,404.90
Other Expenses
25,600.00
25,600.00
19,373.21
396.76
5,830.03
Financial Administration:
-
Salaries and Wages
54,107.00
54,107.00
52,025.95
2,081.05
Other Expenses
4,599.00
4,599.00
4,182.53
416.47
Audit Services
-
Other Expenses
27,800.00
27,800.00
27,800.00
-
Computerized Data Processing
-
Other Expenses
14,000.00
14,000.00
13,174.00
826.00
Collection of Taxes
-
-
Salaries and Wages
24,012.00
28,113.00
27,092.35
1,020.65
Other Expenses
7,730.00
7,730.00
6,089.54
1,640.46
Assessment of Taxes
-
-
Salaries and Wages
11,204.00
11,204.00
10,772.85
431.15
Other Expenses
2,950.00
2,950.00
2,222.45
293.10
434.45
Legal Services & Costs
-
-
Other Expenses
30,000.00
26,000.00
24,398.83
1,601.17
Engineer
-
-
Other Expenses
5,000.00
3,000.00
2,346.25
653.75
Economic Development
-
-
Other Expenses
3,500.00
3,500.00
2,826.87
673.13
Land Use Administration:
-
-
Planning Board:
-
-
Salaries and Wages
14,037.00
14,037.24
13,497.35
539.89
Other Expenses
13,925.00
21,209.00
19,904.35
1,304.65
(Continued)
12
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2018
Appropriations
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Operations Within "CAPS" (Continued)
General Government (Continued)
Insurance:
Liability Insurance
89,108.00
$
90,922.00
$
90,922.00
$
-
$
-
$
-
$
Worker Compensation
86,000.00
82,186.00
81,740.00
446.00
Employees Group Insurance
369,302.00
371,302.00
360,757.66
10,544.34
Public Safety:
Police:
Salaries and Wages
502,908.00
502,908.00
461,760.72
41,147.28
Other Expenses
48,034.00
48,034.00
39,118.68
980.56
7,934.76
Office of Emergency Management
Other Expenses
750.00
750.00
750.00
Aid to Volunteer Ambulance Squad
Other Expenses
-
-
Fire Department
Other Expenses
25,000.00
25,000.00
19,035.23
3,546.22
2,418.55
Fire Official
Salaries and Wages
5,411.00
5,411.00
5,202.50
208.50
Other Expenses
1,500.00
1,500.00
1,400.08
0.72
99.20
Public Works:
Road Repairs and Maintenance
Salaries and Wages
199,183.00
199,183.00
191,053.81
8,129.19
Other Expenses
47,100.00
45,379.52
36,373.29
6,976.65
2,029.58
Shade Tree Commission
Other Expenses
41,000.00
41,000.00
40,164.00
836.00
-
Solid Waste Collection
Other Expenses
120,000.00
124,045.00
113,980.94
6,622.51
3,441.55
Public Buildings and Grounds
Other Expenses
25,000.00
24,000.00
22,057.61
754.70
1,187.69
Vehicle Maintenance
Other Expenses
31,000.00
31,000.00
25,884.78
5,032.78
82.44
Registrar of Vital Statistics:
Salaries and Wages
4,801.00
4,801.10
4,616.45
184.65
Other Expenses
150.00
150.00
150.00
(Continued)
13
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2018
Appropriations
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Operations Within "CAPS" (Continued)
General Government (Continued)
Animal Control
Other Expenses
5,000.00
$
5,000.00
$
3,148.00
$
1,420.00
$
432.00
$
-
$
Parks and Recreation:
-
Recreation Services:
-
-
Other Expenses
14,250.00
14,250.00
10,805.75
3,145.04
299.21
Celebration of Public Events:
-
Other Expenses
600.00
600.00
600.00
Contribution to Senior Citizens Club:
-
Other Expenses
-
-
Utilities:
-
Electricity
82,000.00
69,082.00
62,920.98
6,161.02
Street Lighting
45,000.00
44,000.00
39,613.48
4,386.52
Telephone
16,000.00
19,100.00
15,866.83
2,775.52
457.65
Water
4,000.00
4,370.00
3,828.52
541.48
Fire Hydrant Service
43,000.00
42,500.00
38,666.31
3,833.69
Sewerage Processing:
-
Salaries and Wages
92,375.00
93,393.70
89,741.21
3,652.49
Other Expenses
117,500.00
117,500.00
109,285.61
3,048.20
5,166.19
Gasoline
25,000.00
26,500.00
25,909.92
590.08
Landfill and Solid Waste Disposal Costs - Landfill Fees
102,000.00
103,000.00
91,773.15
8,883.07
2,343.78
Municipal Court:
Other Expenses
97,151.00
97,151.00
978.75
96,172.25
Public Defender (P.L. 1997, c 256)
Salaries and Wages
4,000.00
4,000.00
4,000.00
-
Construction Code Office:
Salaries and Wages
29,537.00
29,646.44
28,506.20
1,140.24
Other Expenses
850.00
850.00
850.00
Total Operations - Within "CAPS"
2,578,499.00
2,577,889.00
2,306,887.66
44,877.68
226,123.66
-
Detail:
Salaries and Wages
1,004,100.00
1,005,329.48
944,389.49
-
60,939.99
-
Other Expenses
1,574,399.00
1,572,559.52
1,362,498.17
44,877.68
165,183.67
-
(Continued)
14
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2018
Appropriations
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
`
Municipal - Within "CAPS":
STATUTORY EXPENDITURES:
Contribution to:
Social Security System (O.A.S.I.)
52,116.00
$
52,116.00
$
46,221.28
$
-
$
5,894.72
$
-
$
Police & Fireman's Retirement System
66,017.00
66,217.00
66,212.09
4.91
Public Employees' Retirement System
60,812.00
61,222.00
61,212.50
9.50
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
178,945.00
179,555.00
173,645.87
-
5,909.13
-
Total General Appropriations -
For Municipal Purposes Within "CAPS"
2,757,444.00
2,757,444.00
2,480,533.53
44,877.68
232,032.79
-
Operations Excluded from "CAPS":
Aid To Library (N.J.S.A.40:54-35)
9,000.00
9,000.00
9,000.00
-
Matching Funds for Grants
6,500.00
6,500.00
6,500.00
Public and Private Programs Offset By Revenues:
-
Body Armor Grant
1,383.45
1,383.45
1,383.45
-
Drunk Driving Enforcement Fund
366.16
366.16
Bullet Proof Vest
438.90
438.90
438.90
-
Recycling Tonnage Grant
3,598.05
3,598.05
3,598.05
-
County Park Development Grant
55,000.00
55,000.00
55,000.00
-
Clean Communities Grant
6,098.72
6,098.72
Total Operations - Excluded From "CAPS"
75,920.40
82,385.28
75,885.28
6,500.00
-
Detail:
Other Expenses
75,920.40
82,385.28
75,885.28
-
6,500.00
-
Capital Improvements - Excluded From "CAPS"
Capital Improvement Fund
27,137.00
27,137.00
27,137.00
-
-
Total Capital Improvements - Excluded From "CAPS"
27,137.00
27,137.00
27,137.00
-
-
-
(Continued)
15
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2018
Appropriations
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Municipal Debt Service - Excluded From "CAPS"
Payment of BAN Principal
261,500.00
$
261,400.00
$
228,750.00
$
-
$
-
$
32,650.00
$
Interest on Notes
38,940.00
39,040.00
38,940.12
-
99.88
Total Municipal Debt Service - Excluded From "CAPS"
300,440.00
300,440.00
267,690.12
-
-
32,749.88
Total General Appropriations for Municipal
Purposes Excluded From "CAPS"
403,497.40
409,962.28
370,712.40
-
6,500.00
32,749.88
Subtotal General Appropriations
3,160,941.40
3,167,406.28
2,851,245.93
44,877.68
238,532.79
32,749.88
Reserve for Uncollected Taxes
175,304.37
175,304.37
175,304.37
-
-
TOTAL GENERAL APPROPRIATIONS
3,336,245.77
$
3,342,710.65
$
3,026,550.30
$
44,877.68
$
238,532.79
$
32,749.88
$
Original Budget
3,336,245.77
$
Amended by NJS 40A:4-87
6,464.88
3,342,710.65
$
Expended - Paid or Charged:
Reduction of Investment in Bond
Anticipation Note
228,750.00
$
Reserve for State Grants
66,885.28
Reserve for Uncollected Taxes
175,304.37
Due to General Capital Fund
Disbursed
2,555,610.65
Total
3,026,550.30
$
The accompanying Notes to Financial Statements are an integral part of this statement.
16
EXHIBIT B
BOROUGH OF RIVERTON
Trust Fund
Statement of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2018 and 2017
Reference
2018
2017
ASSETS
Animal Control Fund:
Cash - Treasurer
B-1
2,567.73
$
2,337.03
$
Other Funds:
Cash - Treasurer
B-1
249,125.97
208,291.54
Due from Current Fund
A
30,000.00
30,000.00
Total Other Funds
279,125.97
238,291.54
Total
281,693.70
$
240,628.57
$
LIABILITIES AND RESERVES
Dog License Fund:
Due to Current Fund
A
2,104.13
$
2,064.67
$
Due to State
3.60
Reserve for Dog Fund Expenditures
B-2
460.00
272.36
Total Dog License Fund
2,567.73
2,337.03
Other Funds:
Due State of New Jersey:
Marriage License Fees
B-3
100.00
Due to Current Fund
A
37,839.45
37,519.05
Payroll Deductions Payable
B-4
8,642.66
7,987.05
Tax Title Lien Redemption Payable
B-5
Reserve for Unemployment Compensation Trust
B-6
16,201.40
14,175.91
Reserve for Flexible Spending Account
B-7
207.57
138.88
Reserve for Developers Escrow Fund
B-8
117,951.97
71,988.03
Reserve for Tax Sale Premiums
B-9
11,174.48
43,025.12
Reserve for Shade Tree Commission
B-10
4,249.33
3,763.73
Reserve for Environmental Fund
B-11
5,161.38
5,161.38
Reserve for Veterans Affairs Fund
B-12
975.12
1,115.12
Reserve for Public Defender
B-13
944.59
48.59
Reserve for Police Forfeited Property
B-14
4,187.04
3,248.72
Reserve for Compensated Absences
B-15
30,000.00
30,000.00
Reserve for POAA Funds
B-16
351.48
349.96
Reserve for Off Duty Police
B-17
40,368.00
16,020.00
Reserve for Dog Park
B-18
150.00
Reserve for Uniform Fire Safety
B-19
871.50
3,500.00
Total Other Funds
279,125.97
238,291.54
Total
281,693.70
$
240,628.57
$
The accompanying Notes to Financial Statements are an integral part of this statement.
17
EXHIBIT C
BOROUGH OF RIVERTON
General Capital Fund
Statement of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2018 and 2017
Reference
2018
2017
ASSETS
Cash
C-2, C-3
727,513.98
$
426,490.44
$
Due from Current Fund
A
20,248.55
20,248.55
Deferred Charges to Future Taxation:
Funded
C-4
1,995,000.00
Unfunded
C-5
146,423.32
2,105,845.32
State Grants Receivable
C-6
59,500.00
108,250.00
Total
2,948,685.85
$
2,660,834.31
$
LIABILITIES, RESERVES
AND FUND BALANCE
Serial Bonds Payable
C-7
1,995,000.00
$
-
$
Bond Anticipation Notes Payable
C-8
-
1,959,422.00
Due to Current Fund
A
11,738.11
52.71
Due to Federal and State Grant Fund
A
23,600.00
23,600.00
Improvement Authorizations:
Funded
C-9
762,196.58
29,151.13
Unfunded
C-9
120,393.22
618,292.83
Encumbrances Payable
C-9
11,348.02
Capital Improvement Fund
C-10
256.76
256.76
Reserve for Debt
5,674.28
11,580.00
Fund Balance
C-1
18,478.88
18,478.88
Total
2,948,685.85
$
2,660,834.31
$
The accompanying Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT C-1
BOROUGH OF RIVERTON
General Capital Fund
Statement of Operations and Changes in Fund Balance -- Regulatory Basis
For the Year Ended December 31, 2018
Balance December 31, 2018 and 2017
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, 2018 and 2017
Reference
2018
2017
ASSETS
Cash
D-1
737.03
$
733.82
$
Total
737.03
$
733.82
$
LIABILITIES AND RESERVES
Reserve for Public Assistance
737.03
$
733.82
$
The accompanying Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT E
BOROUGH OF RIVERTON
ACCOUNT GROUP
Statement of General Fixed Assets Group of Accounts
For the Year Ended December 31, 2018
Balance
Balance
December 31,
December 31,
2017
Additions
Retirements
2018
General Fixed Assets:
Land
147,405.00
$
-
$
-
$
147,405.00
$
Buildings
1,580,688.90
1,580,688.90
Land and Building Improvements
637,829.54
637,829.54
Equipment
598,995.96
53,942.74
652,938.70
Vehicles
2,360,993.14
39,000.00
2,399,993.14
Total General Fixed Assets
5,325,912.54
$
92,942.74
$
-
$
5,418,855.28
$
Total Investment in General
Fixed Assets
5,325,912.54
$
92,942.74
$
-
$
5,418,855.28
$
The accompanying Notes to Financial Statements are an integral part of this statement.
21
Borough of Riverton
Notes to Financial Statements
December 31, 2018
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 western portion of the County of Burlington, State of New Jersey. The present population according to the
2010 census is 2,629.
The Borough was incorporated in 1893 and is governed by a Mayor/Council 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 Officer 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 – GASB Statement No. 14, The Financial Reporting Entity and GASB Statement No. 39,
Determining Whether Certain Organizations are Component Unit, provide guidance that all entities associated with a
primary government are potential component units and should be evaluated for inclusion in the financial reporting entity.
A primary government is financially accountable not only for the organizations that make up its legal entity, but also for
legally separate organizations that meet the criteria established by GASB Statements No. 14 and No. 39. In addition,
GASB Statement No. 61, provides additional guidance for organizations that do not meet the financial accountability
criteria for inclusion as component units but that nevertheless should be included because the primary government’s
management determines that it would be misleading to exclude them. GASB Statement No. 80, Blending Requirements
for Certain Component Units - an Amendment of GASB Statement No. 14 amends the blending requirements for the
financial statement presentation of component units of all state and local governments. The additional criteria requires
blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole
corporate member. There were no additional entities required to be included in the reporting entity under the criteria as
described above. Furthermore, the Borough is not includable in any other reporting entity on the basis of such criteria.
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 Funds 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 of general capital facilities, other than those acquired in the Current Fund.
22
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 10 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 governing body may, by majority vote,
adopt the budget or may amend the budget in accordance with N.J.S.A. 40A:4-9. Amendments to the adopted budgets, if
any, are detailed in the statements of revenues and expenditures.
An extension of the statutory dates for introduction, approval and adoption of the municipal budget may be granted by
the Director of the Division of Local Government Services, with the permission of the Local Finance Board.
Budgets are adopted on the same basis of accounting utilized for the preparation of the Borough's financial statements.
Cash, Cash Equivalents and Investments - Cash and cash equivalents, for all funds, include petty cash, change funds,
cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of the date of
maturity. 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. 40A:5-15.1 provides a list of investments which may be purchased by New Jersey
municipal units. In addition, other State statutes permit investments in obligations issued by local utilities and other state
agencies.
N.J.S.A. 17:9-41 et seq. establishes the requirements for the security of deposits of governmental units. The statute
requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in
accordance with the Governmental Unit Deposit Protection Act (“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.
23
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 at historical cost; however, assets acquired prior to December 31, 1985 are valued at actual
historical cost or estimated historical cost. Donated general fixed assets are recorded at their estimated fair market value
on the acquisition date. Donated general fixed 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.
The regulations require that general fixed assets, whether constructed or acquired through purchase, grant or gift be
included in the aforementioned inventory. In addition, property management standards must be maintained that includes
accurate records indicating asset description, source, ownership, acquisition cost and date, the percentage of Federal
participation (if any), and the location, use, and condition of the asset. Periodically, physical inventories must be taken
and reconciled with these records. 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 of succeeding years.
Liens Sold for Other Governmental Units - Liens sold on behalf of other governmental units are not recorded on the
records of the 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.
24
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 property taxes are recorded with offsetting reserves on the statement of assets, liabilities
reserves and fund balance of the 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 1, August
1, and November 1. 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 1 to June 30, increased by the amount deferred at December 31, 2017 and decreased by
the amount deferred at December 31, 2018.
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
certified to the County Board of Taxation by January 10 of the current year. In addition, operations is charged for the
County share of Added and Omitted Taxes certified to the County Board of Taxation by October 10 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 preceding year, with certain exceptions, is
required to provide assurance that cash collected in the current year will provide sufficient cash flow to meet expected
obligations.
Expenditures - 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 classified as a
cash liability under New Jersey municipal accounting. At December 31, this reserve represents the portion of
appropriation reserves that has been encumbered and is subject to the same statutory provisions as appropriation
reserves.
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
Capital Fund. Where an improvement is a "local improvement", i.e. assessable upon completion, long-term debt
associated with that portion of the cost of the improvement to be funded by assessments is transferred to the Trust Fund
upon the confirmation of the assessments or when the improvement is fully and permanently funded.
25
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 $10,000 and remains in arrears beyond December 31st, an additional penalty 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 presented in the statement 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 credit risk, N.J.S.A. 17:9-41 et 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 $250,000 of governmental deposits in each insured depository is protected by the Federal Deposit Insurance
Corporation (FDIC). Public funds owned by the municipality in excess of FDIC insured amounts are protected by
GUDPA.
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 $4,522,376 as of December 31, 2018, $250,000 was insured under FDIC and the
remaining balance of $4,272,376 was collateralized under GUDPA.
NOTE 3. PROPERTY TAXES
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.
Comparative Schedule of Tax Rates
2018
2017
2016
2015
2014
Total Tax Rate without Business
Improvement District Tax Rate
3.549
$
3.478
$
3.338
$
3.272
$
3.192
$
Apportionment of Tax Rate:
Municipal
0.854
0.854
0.837
0.818
0.796
County
0.464
0.462
0.444
0.438
0.407
Local School
2.231
2.162
2.057
2.016
1.989
26
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 3. PROPERTY TAXES (CONTINUED)
Assessed Valuation
2018
241,732,686
$
2017
242,009,500
2016
242,142,400
2015
241,817,400
2014
241,818,548
Percentage of
Year
Tax Levy
Collections
Collections
2018
8,590,771
$
8,442,600
$
98.27%
2017
8,430,137
8,280,944
98.23%
2016
8,084,743
7,928,080
98.06%
2015
7,923,797
7,809,121
98.55%
2014
7,722,182
7,592,515
98.32%
Comparison of Tax Levies and Collections
Tax Title
Delinquent
Total
Percentage of
Year
Liens
Taxes
Delinquent
Tax Levy
2018
-
$
137,904
$
137,904
$
1.60%
2017
-
142,793
142,793
1.69%
2016
-
157,964
157,964
1.95%
2015
-
117,737
117,737
1.49%
2014
-
127,518
127,518
1.65%
Delinquent Taxes and Tax Title Liens
There were no tax title liens receivables on December 31, of the current year and previous four years.
NOTE 4. PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on the basis of the last assessed valuation
of such properties, for the current and previous four years was as follows:
Year
Amount
2018
-
$
2017
-
2016
-
2015
-
2014
-
27
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 5. SEWER UTILITY SERVICE CHARGES
The following is a five-year comparison of sewer utility service charges (rents) and collections for the current and
previous four years.
Cash
Year
Receivables
Liens
Levy
Total
Collections
Percentage
2018
26,974
$
-
$
443,898
$
470,872
$
440,380
$
93.52%
2017
45,594
-
449,456
495,050
468,076
94.55%
2016
29,817
-
445,300
475,117
429,524
90.40%
2015
31,797
-
446,149
477,946
448,129
93.76%
2014
38,010
-
450,139
488,149
456,352
93.49%
Balance Beginning of Year
NOTE 6. FUND BALANCES APPROPRIATED
The following schedule details the amount of fund balances available at the end of the current year and four previous
years and the amounts utilized in the subsequent year's budgets.
Utilized in Budget
Percentage of
Balance
of Succeeding
Fund Balance
Year
December 31,
Year
Used
Current Fund
2018
758,732
$
200,000
$
26.36%
2017
717,326
185,000
25.79%
2016
583,651
150,000
25.70%
2015
615,160
150,000
24.38%
2014
415,758
150,000
36.08%
NOTE 7. INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances were recorded on the various statements of assets, liabilities, reserves and fund
balances as of December 31, 2018:
Interfund
Interfund
Fund
Receivables
Payables
Current Fund
51,681
$
64,714
$
Federal and State Grant Fund
38,065
Trust Fund:
Animal Control Fund
2,104
Other Trust Funds
30,000
37,839
General Capital Fund
20,249
35,338
139,995
$
139,995
$
28
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. 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 - The 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 43:3B.
Police and Firemen’s Retirement System (PFRS) (Continued)
Vesting and Benefit Provisions – The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides
retirement, death and disability benefits. All benefits vest after ten years of service, except disability benefits, which vest
after four years of service.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to May 22, 2010
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for each
year of creditable service up to 30 years plus 1% for each year of service in excess of 30 years. Members may seek
special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2
members) and 60% (tier 3 members) of final compensation plus 1% for each year 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 2% 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 511, P.L. 1991, Chapter 109, P.L. 1979,
Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating
employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68,
and the State is treated as a 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.
29
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
The Borough’s contractually required contribution rate for the year ended December 31, 2018 was 33.10% 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.
Based on the most recent PFRS measurement date of June 30, 2018, the Borough’s contractually required contribution to
the pension plan for the year ended December 31, 2018 is $119,202 and is payable by April 1, 2019. Due to the basis of
accounting described in Note 1, no liability has been recorded in the financial statements for this amount. Based on the
PFRS measurement date of June 30, 2017, the Borough’s contractually required contribution to the pension plan for the
year ended December 31, 2017 was $66,017, which was paid by April 1, 2018. Employee contributions to the pension
plan during the year ended December 31, 2018 were $38,364.
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, 2018 was 3.69% of the Borough’s covered payroll.
Based on the most recent PFRS measurement date of June 30, 2018, the State’s contractually required contribution, on-
behalf of the Borough, to the pension plan for the year ended December 31, 2018 is $13,273 and is payable by April 1,
2019. Based on the 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 was $6,450, which was paid on April 1, 2018.
The Borough is billed annually for its normal contributions plus any accrued liability. These contributions, equal to the
required contributions are detailed below.
Total
Non
Liability
Fiscal
Normal
Accrued
Contributory
Employer
Paid by
Year
Contributions
Liability
Life
Retro
Borough
2018
20,556
$
42,793
$
2,668
$
-
$
66,017
$
2017
23,052
41,729
2,944
120
67,845
2016
31,984
59,163
4,253
95,400
Pension Liabilities, 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 to/deductions 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, 2018, the Borough’s proportionate share of pension expense is $26,545. This expense
is not recognized by the Borough because of the regulatory basis of accounting as described in Note 1.
30
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
At December 31, 2018, the Borough proportionate share of the net pension liability is $1,649,879 and deferred outflows
of resources related to PFRS from the following sources:
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between expected and actual experience
16,785
$
6,828
$
Changes of assumptions
141,620
422,835
Net Difference between projected and actual earnings
on pension plan investments
9,026
Changes in proportion
632,881
336,158
Borough contributions subsequent to the measurement
date
119,202
Total
910,488
$
774,847
$
$119,202 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the
year ending December 31, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Net Deferred
For the year
Outflows (Inflows)
ended:
of Resources
2019
(17,804)
$
2020
(17,804)
2021
(17,804)
2022
(47,471)
2023
117,322
Total
16,439
$
31
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
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
June 30, 2018
5.73
5.73
Changes of assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
Net Difference between projected and actual earnings
on pension plan investments
Year of Pension Plan Deferral:
June 30, 2014
5.00
5.00
June 30, 2015
5.00
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
5.00
June 30, 2018
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
Additional Information
Collective balances at June 30, 2018 and 2017 are as follows:
6/30/2018
6/30/2017
Collective deferred outflows of resources $ 1,988,215,695
$ 2,941,952,753
Collective deferred inflows of resources
$ 4,286,994,294
$ 3,262,432,093
Collective net pension liability
$ 15,369,699,278
$ 17,167,260,198
Borough’s Proportion
.0121927403%
.0074593924%
32
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
Additional Information (Continued)
Actuarial assumptions – The total pension liability for the June 30, 2018 measurement date was determined by an
actuarial valuation as of July 1, 2017, which was rolled forward to June 30, 2018. This actuarial valuation used the
following actuarial assumptions:
Inflation rate: 2.25%
Salary Increases:
Through 2026: 2.10-8.98% based on age
Thereafter: 3.10-9.98% based on age
Investment Rate of Return: 7.00%
Pre-retirement mortality rates were based on the RP-2000 Pre-Retirement Mortality Tables projected on a generational
basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014 projection scale
thereafter. For preretirement accidental mortality, a custom table with representative rates was used and there is no
mortality improvement assumed. Post-retirement mortality rates for male service retirements and beneficiaries are based
on the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection Scale AA from
the base year of 2012 to 2013 and the Conduent modified 2014 projection scale thereafter. Post-retirement mortality rates
for female service retirement and beneficiaries were based on the RP-2000 Combined Healthy Mortality Tables
projected on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent
modified 2014 projection scale thereafter. Disability mortality rates were based on a custom mortality table with
representative rates and no mortality improvement assumed.
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study
for the period July 1, 2010 to June 30, 2013.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method n which best-estimate ranges of expected future
real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
33
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police 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, 2018 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Absolute return/risk mitigation
05.00%
05.51%
Cash equivalents
05.50%
01.00%
U.S. Treasuries
03.00%
01.87%
Investment grade credit
10.00%
03.78%
Public high yield
02.50%
06.82%
Global diversified credit
05.00%
07.10%
Credit oriented hedge funds
01.00%
06.60%
Debt related private equity
02.00%
10.63%
Debt related real estate
01.00%
06.61%
Private real assets
02.50%
11.83%
Equity related real estate
06.25%
09.23%
U.S. Equity
30.00%
08.19%
Non-U.S. developed markets equity
Emerging markets equity
Buyouts/venture capital
11.50%
06.50%
08.25%
09.00%
11.64%
13.08%
100.00%
Discount rate. The discount rate used to measure the State's total pension liability was 6.51% as of June 30, 2018. This
single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00%,
and a municipal bond rate of 3.87% as of June 30, 2018, based on the Bond Buyer Go 20-Bond Municipal Bond Index
which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made
at the current member contribution rates and that contributions from employers and the nonemployer contributing entity
will be made based on the contribution rate in the most recent fiscal year. That state employer contributed 50% of the
actuarially determined contributions and the local employers contributed 100% of their actuarially determined
contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make
projected future benefit payments of current plan members through 2062. Therefore, the long-term expected rate of
return on plan investments was applied to projected benefit payments through 2062, 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 liability to changes in the discount rate. The
following presents the Borough’s and State’s proportionate share of the net pension liability measured as of June 30,
2018, calculated using the discount rate of 6.51%, as well as what the Borough’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.51%) or 1 percentage
point higher (7.51%) that the current rate:
34
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
Current
1% Decrease
Discount Rate
1% Increase
(5.51%)
(6.51%)
(7.51%)
Borough's proportionate share of the
net pension liability
2,208,158
$
1,649,879
$
1,189,400
$
State's proportionate share of the
net pension liability associated with the
Borough
263,503
224,109
191,668
2,471,661
$
1,873,988
$
1,381,068
$
Pension Plan fiduciary 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 1, 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 Borough, provided the employee is not required to be a member of another state-administered
retirement system or other state 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. 43:15A and 43:3B. PERS
provides retirement, death and disability 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
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to tiers 1 and 2
members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final
average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5 members
upon reaching age 65. Early retirement benefits are available to tier 1 and 2 members before reaching age 60, tiers 3 and
4 before age 62 with 25 or more years of service credit, and tier 5 before age 65 with 30 or more years of service credit.
Benefits are reduced by a fraction of a percent for each month that a member retires prior to the retirement age for his/her
respective tier. Deferred retirement is available to members who have at least 10 years of service credit and have not
reached the service retirement age for their respective tier.
35
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
Contributions - The contribution requirements of plan members are determined by N.J.S.A 43:15A and requires
contributions by active members and contributing employers. Members contribute at a uniform rate. Pursuant to the
provisions of Chapter 78, P.L. 2011, effective October 1, 2011, 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
contribution rate was 7.34% in State fiscal year 2018. 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 10%. Employers’ contribution amounts 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 December 31, 2018 was 12.99% 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.
Based on the most recent PERS measurement date of June 30, 2018, the Borough’s contractually required contribution to
the pension plan for the fiscal year ended December 31 2018 was $55,277 and is payable by April 1, 2019. Based on the
PERS measurement date of June 30, 2017, the Borough’s contractually required contribution to the pension plan for the
year ended December 31, 2017 was $59,669, which was paid by April 1, 2018. Employee contributions to the pension
plan during the year ended December 31, 2018 were $31,564.
The Borough is billed annually for its normal contributions plus any accrued liability. These contributions, equal to the
required contributions are detailed below.
Total
Non
Liability
Fiscal
Normal
Accrued
Contributory
Longterm
Employer
Paid by
Year
Contributions
Liability
Life
Disability
Retro
Borough
2018
7,854
$
48,907
$
2,908
$
1,143
$
-
$
60,812
$
2017
8,896
45,274
2,704
278
57,152
2016
10,223
47,093
3,069
60,385
Pension Liabilities, 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 PERS and
additions to/deductions from PERS fiduciary net position have been determined on the same basis as they are reported by
PERS. 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.
At December 31, 2018, the Borough’s proportionate share of the PERS net pension liability was $1,094,201. The net
pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of July 1, 2017. The Borough’s proportion of the of the net pension
liability was based on a projection 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, 2018, the Borough’s proportionate share of the PERS pension expense, calculated by
the plan as of the June 30, 2018 measurement date is ($630). This expense is not recognized by the Borough because of
the regulatory basis of accounting as described in note 1.
36
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
At December 31, 2018, the Borough proportionate share of the PERS net pension liability was $1,094,201 and deferred
outflows of resources related to PERS from the following sources:
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between expected and actual experience
20,867
$
5,642
$
Changes of assumptions
180,306
349,867
Net Difference between projected and actual earnings
on pension plan investments
10,264
Changes in proportion
5,427
230,665
Borough contributions subsequent to the measurement
date
55,277
Total
261,877
$
596,438
$
$55,277 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the year
ending December 31, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Net Deferred
For the year
Outflows (Inflows)
ended:
of Resources
2019
(69,078)
$
2020
(69,078)
2021
(38,466)
2022
(114,892)
2023
(98,324)
Total
(389,838)
$
37
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
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
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
-
5.63
Changes of assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
Net Difference between projected and actual earnings
on pension plan investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
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, 2016
5.57
5.57
Additional Information
Collective balances at June 30, 2018 and 2017 are as follows:
6/30/2018
6/30/2017
Collective deferred outflows of resources $ 4,684,852,302
$ 6,424,455,842
Collective deferred inflows of resources
$ 7,646,736,226
$ 5,700,625,981
Collective net pension liability
$ 19,689,501,539
$ 23,278,401,588
Borough’s Proportion
.0000555728%
.0064410015%
Actuarial assumptions – The total pension liability for the June 30, 2018 measurement date was determined by an
actuarial valuation as of July 1, 2017, which was rolled forward to June 30, 2018.
38
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. 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: 2.25%
Salary Increases:
Through 2026: 1.65-4.15% based on age
Thereafter: 2.65-5.15% based on age
Investment Rate of Return: 7.00%
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 back 2 years for males and 7 years for females. In addition, the tables provide for future
improvements in mortality from the base year of 2013 using a generational approach based on the Conduent modified
2014 projection scale. Post-retirement mortality rates were based on the RP-2000 Combined Healthy Male and Female
Mortality Tables (set back 1 year for males and females) for service retirements and beneficiaries of former members. In
addition, the tables for service retirements and beneficiaries of former members provide for future improvements in
mortality from 2012 to 2013 using Projection Scale AA and using a generational approach based on the Conduent 2014
projection scale therafter. Disability 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 1 year for females).
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study
for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these
assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher
or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method in which best-estimate ranges of expected future
real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
39
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION 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, 2018 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Risk mitigation strategies
05.00%
05.51%
Cash equivalents
05.50%
01.00%
U.S. Treasuries
03.00%
01.87%
Investment grade credit
10.00%
03.78%
Public high yield
02.50%
06.82%
Global diversified credit
05.00%
07.10%
Credit oriented hedge funds
01.00%
06.60%
Debt related private equity
02.00%
10.63%
Debt related real estate
01.00%
06.61%
Private real assets
02.50%
11.83%
Equity related real estate
06.25%
09.23%
U.S. Equity
30.00%
08.19%
Non-U.S. developed markets equity
Emerging markets equity
Buyouts/venture capital
11.50%
06.50%
08.25%
09.00%
11.64%
13.08%
100.00%
Discount rate. The discount rate used to measure the State's total pension liability was 5.66% as of June 30, 2018. This
single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00%,
and a municipal bond rate of 3.87% as of June 30, 2018, based on the Bond Buyer Go 20-Bond Municipal Bond Index
which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made
at the current member contribution rates and that contributions from employers will be made based on the contribution
rate in the most recent fiscal year. The state employer contributed 50% of the actuarially determined contributions and
the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the
plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan
members through 2046. Therefore, the long-term expected rate of return on plan investments was applied to projected
benefit payments through 2046, and the municipal bond rate was applied to projected benefit payments after that date in
determining the total pension liability.
Sensitivity of the Borough’s proportionate share of the net pension liability to changes in the discount rate. The
following presents the Borough’s proportionate share of the net pension liability measured as of June 30, 2018,
calculated using the discount rate of 5.66%, as well as what the Borough’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1 percentage point lower (4.66%) or 1 percentage point higher
(6.66%) that the current rate:
Current
1% Decrease
Discount Rate
1% Increase
(4.66%)
(5.66%)
(6.66%)
Borough's proportionate share of the
net pension liability
1,375,832
$
1,094,201
$
857,931
$
40
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
Pension Plan fiduciary 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.
Defined Contribution 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.A.43:15C-1 et. seq), and expanded under the provisions of Chapter 89, P.L. 2008 and Chapter 1, P.L. 2010. The
Defined Contribution Retirement 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. 43:15C-1 et. seq.
The contribution requirements of plan members are determined by State statute. In accordance with Chapter 92, P.L.
2007 and Chapter 103, P.L. 2007, plan members are required to contribute 5.5% of their annual covered salary. In
addition to the employee contributions, the Borough’s contribution amounts for each pay period are transmitted to
Prudential Financial 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 December 31, 2018, 2017 and 2016.
Related Party Investments – The Division of Pensions and Benefits does not invest in securities issued by the Borough.
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
Plan Description
The Borough contributes to the State Health Benefit Program (SHBP), a cost-sharing multiple-employer defined benefit
other postemployment benefit (OPEB) administered by the State of New Jersey Division of Pensions and Benefits. It
covers employees of local government employers that have adopted a resolution to participate in the Plan. The plan
meets the definition of an equivalent arrangement as defined in paragraph 4 of (GASB Statement No. 75), therefore,
assets are accumulated to pay associated benefits. For additional information about the Plan, please refer to the State of
New Jersey {the State), Division of Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report
(CAFR), which can be found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the participating employers.
Under the provisions of Chapter 88, P.L 197 4 and Chapter 48, P.L. 1999, local government employers electing to
provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88,
local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State
Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for
employer paid health benefits coverage for retired employees. Under Chapter 48, the employer may assume the cost of
postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up
to 25 years with the employer at the time of retirement as established by the employer; or 3) retired and reached the age
of 65 with 25 or more years of service credit in a State or locally administered retirement system and a period of service
of up to 25 years with the employer at the time of retirement as established by the employer; or 4) retired and reached
age 62 with at least 15 years of service with the employer. Further, the law provides that the employer paid obligations
for retiree coverage may be determined by means of a collective negotiations agreement.
41
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides medical and
prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from
an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution
with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter
330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who
die in the line of duty under Chapter 271, P.L.1989.
Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have less than 20
years of creditable service on June 28, 2011 will be required to pay a percentage of the cost of their health care coverage
in retirement provided they retire with 25 or more years of pension service credit. The percentage of the premium for
which the retiree will be responsible will be determined based on the retiree’s annual retirement benefit and level of
coverage.
The Municipality has adopted a resolution to participate in the SHBP.
Funding policy - Participating employers are contractually required to contribute based on the amount of premiums
attributable to their retirees. Postretirement 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 Municipality
monthly. Premiums are funded entirely by the Municipality and are based on the type of coverage selected by the
employee. The Municipality’s contributions to the SHBP for post-retirement benefits for the years ended December 31,
2018 and 2017 were $191,203 and $212,163 respectively, which equaled the required benefit contribution for each year.
There were ten retired participants eligible at December 31, 2018 and 2017.
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate share of the
collective net OPEB liability, collective deferred outflows of resources, collective deferred inflows of resources, and
collective OPEB expense. The special funding situation’s and nonspecial funding situation’s net OPEB liability, deferred
outflows of resources, deferred inflows of resources, and OPEB expense are based on separately calculated total OPEB
liabilities. For the special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year
ended June 30, 2018 and June 30, 2017 were $4,084,444 and $6,176,230, respectively. The nonspecial funding
situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are
further allocated to employers based on the ratio of the plan members of an individual employer to the total members of
the Plan’s nonspecial funding situation during the measurement period July 1, 2017 through June 30, 2018.
Components of net OPEB liability
The components of the collective net OPEB liability of the participating employers in the SHBP as of December 31,
2018 and 2017 were as follows:
2018
2017
Total OPEB liability
4,166,433
$
5,505,480
$
Plan fiduciary net position
81,989
56,914
Net OPEB liability
4,084,444
$
5,448,566
$
Plan fiduciary net position as a percentage of the
total OPEB liability
1.97%
1.03%
42
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
Actuarial assumptions and other imputes - The total OPEB liability as of the June 30, 2018 was determined by an
actuarial valuation as of June 30, 2017, which was rolled forward to June 30, 2018. The actuarial assumptions vary for
each plan member depending on the pension plan the member enrolled in.
This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement:
Inflation
2.50%
Salary increases*
Through 2026
1.65% to 8.98%
Thereafter
2.65% to 9.98%
Preretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Employee Male/Female
mortality table with fully generational mortality improvement projections from the central year using the MP-2017 scale.
Postretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Annuitant Male/Female
mortality table with fully generational improvement projections from the central year using the MP-2017 scale.
Disability mortality was based on the RP-2006 Headcount-Weighted Disabled Male/Female mortality table with fully
generational improvement projections from the central year using the MP-2017 scale.
Certain actuarial assumptions used in the June 30, 2017 valuation were based on the results of pension plans’ experience
studies for which the members are eligible for coverage under this Plan - the Police and Firemen Retirement System
(PFRS) and the Public Employees Retirement System (PERS). The PFRS and PERS experience studies were prepared
for the periods July 1, 2010 – June 30, 2013 and July 1, 2011 – June 30, 2014, respectively.
Health Care Trend Assumptions - For pre-Medicare preferred provider organization (PPO) and health maintenance
organization (HMO) medical benefits, the trend rate is initially 5.8% and decreases to a 5.0% long-term trend rate after
eight years. For self-insured post-65 PPO and HMO medical benefits, the trend rate is 4.5%. For prescription drug
benefits, the initial trend rate is 8.0% decreasing to a 5.0% long-term trend rate after seven years. The Medicare
Advantage trend rate is 4.5%.
Discount Rate - The discount rate for June 30, 2018 was 3.87%. This represent the municipal bond return rate as chosen
by the State. The source is the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general
obligation municipal bonds with an average rating of AA/Aa or higher. As the long-term rate of return is less than the
municipal bond rate it is not considered in the calculation of the discount rate, rather the discount rate is set at the
municipal bond rate.
Retirees’ Share of Benefit Related Costs - Pursuant to Chapter 78, P.L. 2011, future retirees eligible for postretirement
medical coverage who have less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage
of the cost of their health care coverage in retirement provided they retire with 25 or more years of pension service
credit. The percentage of the premium for which the retirees will be responsible will be determined based on the retiree’s
annual retirement benefit and level of coverage.
43
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
Sensitivity of the Net OPEB liability to changes in the discount rate - The following presents the collective net OPEB
liability to the Municipality as of December 31, 2018 and December 31, 2017, calculated using a discount rate that is 1-
percentage -point lower or 1-percentage-point higher than the current discount rate:
1% Decrease
Discount Rate
1% Increase
December 31, 2018
(2.87%)
(3.87%)
(4.87%)
Proportionate Share Attributable
to the Municipality
4,792,133
$
4,084,444
$
3,519,161
$
1% Decrease
Discount Rate
1% Increase
December 31, 2017
(2.58%)
(3.58%)
(4.58%)
Proportionate Share Attributable
to the Municipality
6,426,746
$
5,448,566
$
4,672,397
$
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The following presents the net OPEB
liability as of June 30, 2018, as well as what the net OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage-point lower or 1-percentage point higher than the current healthcare cost trend rates:
Healthcare cost
December 31,2018
1% Decrease
trend rate
1% Increase
Proportionate Share Attributable
to the Municipality
3,407,081
$
4,084,444
$
4,961,052
$
Healthcare cost
December 31, 2017
1% Decrease
trend rate
1% Increase
Proportionate Share Attributable
to the Authority
6,426,746
$
5,448,566
$
4,672,397
$
44
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
At December 31, 2018 and 2017, the Municipality reported deferred outflows of resources and referred inflows of
resources related to OPEB from the following sources:
2018
2017
Deferred
Deferred
Deferred
Deferred
Outflows
Inflows
Outflows
Inflows
Net differences between projected
and actual investment earnings
on OPEB plan investments
2,158
$
-
$
934
$
-
$
Changes in proportion
Differences between expected and
actual experience
829,288
Changes of assumptions
1,036,073
604,744
Changes in proportion
408,412
332,975
Total
2,158
$
2,273,773
$
934
$
937,719
$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the OPEB will be
recognized in OPEB expense as follows:
For the year
ended:
2019
333,556
$
2020
333,556
2021
333,556
2022
333,834
2023
334,284
Thereafter
602,829
Total
2,271,615
$
45
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
The components of allocable plan OPEB expense, which exclude OPEB expense related to specific liabilities of
individual employers, and total OPEB expense for the year ended December 31, 2018 and 2017 are as follows:
2018
2017
Service cost
233,657
$
284,101
$
Interest on total OPEB liability
199,204
173,051
Expected investment return
(2,448)
(1,378)
Administrative expense
2,138
2,374
Current period recognition (amortization) of deferred
inflows/outflows of resources
(116,147)
Changes of assumptions
(158,036)
(85,901)
Differences between projected and actual
investment earnings on OPEB plan investments
597
233
Total Allocable Plan OPEB expense
158,965
372,480
Net amortization of deferred amounts from
changes in proportion
(64,488)
(47,298)
Total OPEB expense
94,477
$
325,182
$
This expense is not recognized by the Borough because of the regulatory basis of accounting as described in note 1.
NOTE 10. COMPENSATED ABSENCES
Police officers 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 year with a maximum of seventy days. Officers hired after January 8, 2009 are
entitled to fifteen days of sick leave each year and are permitted to accumulate up to fifteen sick days per year with a
maximum of eighty-five days. Vacation days not used during the year may not be accumulated and carried forward. At
the time of an officer’s retirement, in accordance 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 31, 2018, accrued benefits for compensated absences are valued at $20,781.
The Borough has established a Compensated Absences Trust Fund to set aside funds for the future payments of
compensated absences. At December 31, 2018 the balance of the fund is $30,000.00.
NOTE 11. DEFERRED COMPENSATION SALARY ACCOUNT
The Borough offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457 and which have been approved by the Director of the Division of Local Government Services. The plan,
available to all full time employees at their option, permits them to defer a portion of their salary to future years. The
deferred compensation is not available to the participants until termination, retirement, death, or an unforeseeable
emergency occurs.
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.
46
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 12. RISK MANAGEMENT
The Borough is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; employee health and accident claims; and natural disasters.
Commercial Insurance Coverage - The Borough maintains commercial insurance coverage for property and general
liability, health benefits, boiler and machinery, surety bonds, crime, public officials’ liability, and excess liability
coverage for workers compensation and disability benefits.
NOTE 13. 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
Interest
Employee
Amount
Ending
Year
Earnings
Contributions
Reimbursed
Balance
2018
201
$
1,872
$
48
$
16,201
$
2017
189
1,864
48
14,176
2016
185
1,713
-
12,171
NOTE 14. CAPITAL DEBT
Summary of Municipal Debt
Year 2018
Year 2017
Year 2016
Issued:
General Bonds and Notes
1,995,000
$
1,959,422
$
1,859,627
$
Loans
Total Issued
1,995,000
1,959,422
1,859,627
Authorized But Not Issued:
General Bonds and Notes
146,423
146,423
146,423
Net Debt
2,141,423
$
2,105,845
$
2,006,050
$
47
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 14. CAPITAL DEBT (CONTINUED)
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 0.771%.
Gross Debt
Deductions
Net Debt
Local School District Debt
-
$
-
$
-
$
General Debt
2,141,423
2,141,423
Total
2,141,423
$
-
$
2,141,423
$
Net Debt, $2,141,423, divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2, as amended, $277,568,530 equals
0.771%.
Equalized Valuation Basis:
2016
273,916,742
$
2017
279,973,855
2018
278,814,994
Average
277,568,530
$
Borrowing Power Under N.J.S.A. 40A:2-6
3 1/2% of Equalized Valuation Basis (Municipal)
9,714,899
$
Net Debt
2,141,423
Remaining Borrowing Power
7,573,476
$
The foregoing debt information is in agreement with the Annual Debt Statement filed by the Chief Financial Officer.
Serial Bonds Payable
Serial Bonds are authorized in accordance with State law. All bonds are retired in serial installments within the statutory
period of usefulness. Serial Bonds payable at December 31, 2018 consisted of the following issues:
Purpose
Date of Maturity
Interest Rate
Amount
General Obligation Bonds of 2018
08/01/2030
4.00-5.00%
$ 1,995,000
Total
$ 1,995,000
48
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 14. CAPITAL DEBT (CONTINUED)
Schedule of Annual Debt Service for Principal and Interest for Bonded Debt Issued and Outstanding
General Capital Serial Bonds Payable
Calendar
General
Year
Principal
Interest
Total
2019
$ 135,000
$ 87,073
$ 222,073
2020
130,000
91,050
221,050
2021
140,000
84,550
224,550
2022
145,000
77,550
222,550
2023
155,000
70,300
225,300
2024-2028
890,000
228,000
1,118,000
2029-2030
400,000
28,300
428,300
Total
$ 1,995,000
$ 666,823
$ 2,661,823
Bond Anticipation Notes Payable
The Borough issues bond anticipation notes to temporarily fund various capital projects prior to the issuance of serial
bonds. The term of the Notes can not exceed one year 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 fiscal year following the date of the original Notes. The State of New
Jersey also prescribes that on or before the third anniversary date of the original Note a payment of an amount at least
equal to the first legally payable installment of the bonds in anticipation of which such Notes were issued be paid or
retired. A second and third legal installment must be paid if the Notes are to be renewed beyond the forth and fifth
anniversary date of the original issuance.
As of December 31, 2018, the Borough had no outstanding bond anticipation notes.
At December 31, 2018 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, 2018 were $14,028.
Future minimum rental payments under operating lease agreements are as follows:
Year
Total
2019
12,000
$
2020
12,000
Total
24,000
$
49
Borough of Riverton
Notes to Financial Statements
December 31, 2018
NOTE 15. SCHOOL TAXES
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:
2018
2017
Balance of Tax
2,696,514
$
2,616,373
$
Deferred
848,766
848,766
School Tax Payable
1,847,748
$
1,767,607
$
Local District School Tax
Balance December 31,
NOTE 16. CONTINGENCIES
The Borough participates in a number of state and federally assisted grant programs. The programs are subject to
compliance audits under the single audit approach. Such audits could lead to requests for reimbursement by the grantor
agency for expenditures disallowed under terms of the grants. Management believes that the amount from future audits,
if any, would not be material.
NOTE 17. SUBSEQUENT EVENTS
Subsequent to December 31, 2018, the Borough of Riverton authorized additional Bonds and Notes as follows:
Purpose
Date
Amount
Various Capital
Improvements
6/18/2019
$ 370,025
50
SUPPLEMENTAL EXHIBITS
CURRENT FUND
EXHIBIT A-4
BOROUGH OF RIVERTON
Current Fund
Statement of Cash - Collector/Treasurer
For the Year Ended December 31, 2018
FEDERAL AND STATE
CURRENT FUND
GRANT FUND
Balance December 31, 2017
3,027,818.06
$
1,222.20
$
Receipts:
Taxes Receivable
8,151,742.41
$
-
$
Sewer Rent Receivable
433,136.04
Revenue Accounts Receivable
498,045.78
Due from State of New Jersey - Senior Citizens
and Veterans Deductions
26,000.00
Prepaid 2019 Taxes
55,041.00
Tax Overpayments
26,180.37
Sewer Overpayments
1,897.24
Federal and State Grants Receivable
6,903.78
Due to State of NJ - Construction Code Fees
4,382.48
Miscellaneous Revenue Not Anticipated
41,223.91
Contra
42,204.74
Total Receipts
9,279,853.97
6,903.78
Total Funds Available
12,307,672.03
8,125.98
Disbursements:
2018 Appropriations
2,555,610.65
2017 Appropriation Reserves and Accounts
Payable
213,498.53
Due to State of NJ - Construction Code Fees
4,654.98
County Taxes Payable
1,119,523.58
Due County for Added Taxes
1,733.31
Local District School Tax
5,312,886.04
Tax Overpayments
16,818.30
Due to Trust Fund
2.00
Contra
42,204.74
Reserve for Federal and State Grant Funds -
Appropriated
7,036.55
Total Disbursements
9,266,932.13
7,036.55
Balance December 31, 2018
3,040,739.90
$
1,089.43
$
53
EXHIBIT A-5
BOROUGH OF RIVERTON
Current Fund
Schedule of Taxes Receivable and Analysis of Property Tax Levy
For the Year Ended December 31, 2018
State Share of
Senior Citizen
Balance
and Veterans
Balance
December 31,
Added
Collections by Cash
Deductions
Over Payments
December 31,
Year
2017
Taxes
2018 Levy
2017
2018
Allowed
Applied
Canceled
2018
2014
2,734.63
$
-
$
-
$
-
$
1,408.78
$
-
$
-
$
-
$
1,325.85
$
2015
1,133.96
1,133.96
2016
3.34
3.34
-
2017
138,920.82
285.71
139,206.53
-
142,792.75
285.71
140,615.31
2,459.81
2018
8,590,771.46
398,471.30
8,011,127.10
26,500.00
6,501.60
12,727.64
135,443.82
Total
142,792.75
$
285.71
$
8,590,771.46
$
398,471.30
$
8,151,742.41
$
26,500.00
$
6,501.60
$
12,727.64
$
137,903.63
$
Tax Yield:
General Purpose Tax
8,552,843.47
$
Added Taxes
11,677.99
Senior Citizens and Veterans Deductions Allowed
Per Original Levy
26,250.00
Total
8,590,771.46
$
Tax Levy:
Local District School Tax (Abstract)
5,393,027.00
$
County Taxes:
Regular Tax (Abstract)
964,424.87
$
Library Tax (Abstract)
85,099.17
Open Space Preservation Tax (Abstract)
69,999.54
Amount Due County for Added Taxes
(54:4-63.1 et. Seq.)
1,527.33
1,121,050.91
Local Tax for Municipal Purposes
2,065,218.37
Additional Tax Levies
11,475.18
2,076,693.55
Total
8,590,771.46
$
ANALYSIS OF PROPERTY TAX LEVY
54
EXHIBIT A-6
BOROUGH OF RIVERTON
Current Fund
Schedule of Revenue Accounts Receivable
For the Year Ended December 31, 2018
Balance
Balance
December 31,
Accrued
December 31,
2017
in 2018
Collected
2018
Remarks
Borough Clerk:
Registrar of Vital Statistics - Licenses
-
$
941.00
$
941.00
$
-
$
Fees and Permits
1,650.00
1,650.00
Cell Tower Fees
34,810.32
34,810.32
Park Fees
3,500.00
3,500.00
Municipal Court - Fines and Costs
5,943.38
72,100.64
72,896.58
5,147.44
Rec'd Jan 2019
Interest and Costs on Taxes
36,962.98
36,962.98
Fire Official - Uniform Fire Safety -
Fees and Permits
8,417.80
8,417.80
Construction Code Fees
60,986.52
60,986.52
Interest on Investments and
Bank Deposits
15,921.94
15,921.94
Energy Receipts Tax
230,577.00
230,577.00
Consolidated Municipal Property
Tax Relief Aid
Payments in Lieu of Taxes
19,596.96
19,596.96
Cable TV Franchise Fees
11,784.68
11,784.68
Total
5,943.38
$
497,249.84
$
498,045.78
$
5,147.44
$
55
EXHIBIT A-7
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Recievable
For the Year Ended December 31, 2018
Balance December 31, 2017
26,973.88
$
Increased by:
Sewer Rent Billed in 2018
443,898.25
Total
470,872.13
Decreased by:
Collections
433,136.04
$
Prepayments Applied
6,623.14
Overpayments Applied
620.63
440,379.81
Balance December 31, 2018
30,492.32
$
56
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, 2018
Balance December 31, 2017
(750.00)
$
Increased by:
Accrued in 2018:
Senior Citizens Deductions Per Billings
3,500.00
$
Veterans Deductions Per Billings
22,750.00
26,250.00
Add - Current Year Senior Citizen and Veteran Allowed by Collector
250.00
Less - Prior Year Disallowed
(250.00)
26,250.00
25,500.00
Decreased by:
Cash Received
26,000.00
Balance December 31, 2018 (Due to)
(500.00)
$
57
EXHIBIT A-9
BOROUGH OF RIVERTON
CURRENT FUND
Statement of 2016 Appropriation Reserves and Reserve for Encumbrances
For The Year Ended December 31, 2018
Balance December 31, 2017
Balance
After
Paid or
Balance
Encumbered
Reserved
Transfers
Charged
Lapsed
Salaries and Wages:
Borough Clerk
-
$
2,450.08
$
2,450.08
$
2,346.15
$
103.93
$
Financial Administration
2,768.94
2,768.94
2,030.29
738.65
Collection of Taxes
880.83
880.83
879.57
1.26
Assessment of Taxes
421.40
421.40
420.41
0.99
Planning Board
530.01
530.01
526.74
3.27
Police
18,179.27
18,179.27
15,754.18
2,425.09
Fire Official
205.31
205.31
203.03
2.28
Road Repair and Maintenance
8,277.43
8,277.43
8,145.92
131.51
Registrar of Vital Statistics
219.13
219.13
180.16
38.97
Sewerage
2,968.39
2,968.39
2,884.62
83.77
Public Defender
30.54
30.54
30.54
Construction Code Office
983.34
1,133.34
1,110.41
22.93
Other Expenses:
Mayor and Council
45.10
2,187.15
2,232.25
2,153.10
79.15
Borough Clerk
2,150.00
7,179.67
3,329.67
3,126.38
203.29
Financial Administration
920.02
920.02
37.50
882.52
Computerizing Data Processing
306.00
306.00
306.00
Collection of Taxes
1,326.42
1,326.42
1,326.42
Assessment of Taxes
173.60
526.40
700.00
700.00
Legal Services and Costs
10,385.54
1,385.54
1,098.00
287.54
Engineer
1,886.25
1,886.25
1,886.25
Economic Development
3,500.00
3,500.00
3,500.00
Planning Board
17.00
201.84
3,044.84
3,009.75
35.09
Liability Insurance
1,136.00
1,136.00
1,136.00
Worker Compensation
12.00
12.00
12.00
Employees Group Insurance
33,078.03
3,078.03
134.00
2,944.03
Police
1,516.42
11,587.89
13,104.31
3,111.82
9,992.49
Office of Emergency Management
581.52
581.52
581.52
Fire
2,348.00
1,779.80
4,127.80
2,743.82
1,383.98
Fire Official
181.60
181.60
181.60
Road Repair and Maintenance
5,924.43
2,296.53
8,220.96
4,841.89
3,379.07
Shade Tree Commission
5,730.00
1,808.06
7,538.06
6,080.00
1,458.06
Solid Waste Collection
16,131.67
2,007.06
18,138.73
9,526.47
8,612.26
Public Buildings and Grounds
1,804.43
1,145.16
2,949.59
1,639.44
1,310.15
Vehicle Maintenance
284.79
91.32
877.11
443.00
434.11
Registrar of Vital Statistics
150.00
150.00
150.00
Animal Control
1,113.00
1,113.00
480.00
633.00
Recreation
3,304.74
100.91
3,405.65
3,304.74
100.91
Celebration of Public Events
351.09
351.09
351.09
Electricity
12,085.96
12,085.96
6,840.83
5,245.13
Street Lighting
1,631.84
4,131.84
3,896.08
235.76
Telephone
213.43
213.43
213.43
Water
16.04
16.04
16.04
Fire Hydrant Service
3,484.60
3,484.60
3,472.79
11.81
Sewerage Processing
10,666.58
10,538.17
20,604.75
16,441.82
4,162.93
Gasoline
1,965.41
2,565.41
2,551.43
13.98
Landfill and Solid Waste Disposal Costs
7,102.02
6,206.54
8,008.56
6,116.68
1,891.88
Municipal Court
53,410.44
97,883.44
96,247.94
1,635.50
Construction Code Office
308.20
158.20
158.20
Social Security System
3,327.16
3,327.16
1,719.57
1,607.59
Police & Fireman's Retirement System
0.36
0.36
0.36
Public Employees' Retirement System
0.31
0.31
0.31
Total
57,198.78
$
216,942.39
$
274,141.17
$
213,498.53
$
60,642.64
$
Cash Disbursed
213,498.53
Encumbered
213,498.53
$
58
EXHIBIT A-10
BOROUGH OF RIVERTON
Current Fund
Schedule of Tax Overpayments
For the Year Ended December 31, 2018
Balance December 31, 2017
23,850.30
$
Increased by:
Collected
26,180.37
Subtotal
50,030.67
Decreased by:
Cash Disbursed
16,818.30
Canceled
Overpayment Applied to 2018 Taxes
6,501.60
23,319.90
Balance December 31, 2018
26,710.77
$
EXHIBIT A-11
Schedule of Prepaid Taxes
For the Year Ended December 31, 2018
Balance December 31, 2017
398,471.30
$
Increased by:
Collected
55,041.00
Subtotal
453,512.30
Decreased by:
Applied to 2018 Taxes
398,471.30
Balance December 31, 2018
55,041.00
$
59
Exhibit A-12
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Overpayments
For the Year Ended December 31, 2018
Balance December 31, 2017
620.63
$
Increased by:
Collected
1,897.24
2,517.87
Decreased by:
Applied to 2018 Sewer Rents
620.63
Balance December 31, 2018
1,897.24
$
Exhibit A-13
Schedule of Due to State of NJ - UCC Fees
For the Year Ended December 31, 2018
Balance December 31, 2017
851.93
$
Increased by:
State Portion of UCC Fees
4,382.48
5,234.41
Decreased by:
Disbursements
4,654.98
Balance December 31, 2018
579.43
$
60
EXHIBIT A-14
BOROUGH OF RIVERTON
Current Fund
Schedule of County Taxes Payable
For the Year Ended December 31, 2018
Balance December 31, 2017
1,733.31
$
Increased by:
2018 Levy:
General County
964,424.87
$
County Library
85,099.17
County Open Space
69,999.54
Added and Omitted Taxes
1,527.33
1,121,050.91
Subtotal
1,122,784.22
Decreased by:
Payments
1,121,256.89
Balance December 31, 2018
1,527.33
$
61
EXHIBIT A-15
BOROUGH OF RIVERTON
Current Fund
Schedule of Local District School Tax Payable
For the Year Ended December 31, 2018
Balance December 31, 2017:
School Tax Payable
1,767,607.45
$
School Tax Deferred
848,766.00
2,616,373.45
$
Increased by:
Levy - School Year July 1, 2018 to June 30, 2019
5,393,027.00
Total
8,009,400.45
Decreased by:
Payments
5,312,886.04
Balance December 31, 2018:
School Tax Payable
1,847,748.41
School Tax Deferred
848,766.00
2,696,514.41
$
2018 Liability for Local District School Tax:
Tax Paid
5,312,886.04
$
Tax Payable December 31, 2018
1,847,748.41
Total
7,160,634.45
Less:
Tax Payable December 31, 2017
1,767,607.45
Amount Charged to 2018 Operations
5,393,027.00
$
62
EXHIBIT A-16
BOROUGH OF RIVERTON
Federal and State Grant Fund
Schedule of Federal and State Grants Receivable
For the Year Ended December 31, 2018
Transferred
Balance
From
Transferred
Balance
December 31,
Unappropriated
To
December 31,
2017
Accrued
Received
Reserves
Unappropriated
Canceled
2018
State Grants:
Clean Communities Grant
-
$
6,098.72
$
6,098.72
$
-
$
-
$
-
$
-
$
Alcohol Education Rehab
Recycling Tonnage Grant
3,598.05
3,598.05
Body Armor Grant
1,383.45
1,383.45
Drunk Driving Enforcement Grant
366.16
366.16
Green Communities
Burlington County Park Grant
55,000.00
55,000.00
NJ State Forestry Grant
-
Total State Grants
66,446.38
6,464.88
4,981.50
55,000.00
Federal Grants:
NJ Transportation Trust Fund
9,248.00
9,248.00
Bullet Proof Vest
438.90
438.90
438.90
438.90
Total Federal Grants
9,248.00
438.90
438.90
438.90
438.90
9,248.00
Total Federal and State Grants
9,248.00
$
66,885.28
$
6,903.78
$
5,420.40
$
438.90
$
-
$
64,248.00
$
63
EXHIBIT A-17
BOROUGH OF RIVERTON
Federal and State Grant Fund
Schedule of Reserve for Federal and State Grants - Unappropriated
For the Year Ended December 31, 2018
Transfer From
Balance
Federal and
Realized
Balance
December 31,
State Grant
as Revenue
December 31,
2017
Receivable
2018
2018
Federal Grants:
Bullet Proof Vest
438.90
$
438.90
$
438.90
$
438.90
$
Total Federal Grants
438.90
438.90
438.90
State Grants:
Body Armor Grant
1,383.45
1,383.45
-
Drunk Driving Enforcement Grant
Recycling Tonnage Grant
3,598.05
3,598.05
-
Green Communities
Total State Grants
4,981.50
-
4,981.50
-
Total Federal and State Grants
5,420.40
$
438.90
$
4,981.50
$
438.90
$
64
EXHIBIT A-18
BOROUGH OF RIVERTON
Federal and State Grant Fund
Schedule of Reserve for Federal and State Grants - Appropriated
For the Year ended December 31, 2018
Transferred
Transferred
Balance
from
from
Balance
December 31,
2018 Budget
2018 Budget
Prior Year
December 31,
2017
Appropriation
40A:4-87
Encumbrance
Disbursed
Canceled
2018
State Grants:
Clean Communities Grant
824.05
$
-
$
6,098.72
$
-
$
2,188.05
$
-
$
4,734.72
$
Recycling Tonnage Grant
1,308.48
3,598.05
3,523.60
1,382.93
Drunk Driving Enforcement Fund
5,406.53
366.16
447.10
5,325.59
Community Steward Incentive
325.00
325.00
Alcohol Education Rehabilitation
3,817.23
3,817.23
Green Communities
2,495.00
2,495.00
Body Armor Grant
5,697.40
1,383.45
877.80
6,203.05
Stormwater Grant
3,875.97
3,875.97
N.J. State Forestry Grant
129.12
129.12
Emergency Management Grant
823.59
823.59
Domestic Violence
137.04
137.04
Burlington County Park Improvement
55,000.00
55,000.00
Total State Grants
24,839.41
59,981.50
6,464.88
-
7,036.55
-
84,249.24
Federal Grants:
NJ Transportation Trust Fund
10,198.00
10,198.00
Motor Veh. Aggressive Driver Crack Down
8,076.94
8,076.94
Bullet Proof Vest Program
438.90
438.90
Total Federal Grants
18,274.94
438.90
-
-
-
-
18,713.84
Total Federal and State Grants
43,114.35
$
60,420.40
$
6,464.88
$
-
$
7,036.55
$
-
$
102,963.08
$
Cash Disbursed
7,036.55
$
Encumbrances Payable
-
Total
7,036.55
$
65
TRUST FUND
EXHIBIT B-1
BOROUGH OF RIVERTON
Trust Fund
Schedule of Cash - Treasurer
For the Year Ended December 31, 2018
Total
Payment In
Animal
Other Trust
Registrar of
Flexible
Unemployment
Trust
Trust
Police Forfeited
Public
Development
Lieu of
Control
Funds
Vital Statistics
Spending
Compensation
Other
Premium
Property (MLETA)
POAA
Defender
Fees
Construction
Payroll
Balance December 31, 2017
2,337.03
$
208,291.54
$
187.86
$
905.77
$
20,923.06
$
60,381.09
$
39,425.12
$
3,248.72
$
349.96
$
100.51
$
561.49
$
56,311.72
$
25,896.24
$
Receipts:
Dog License Fees:
Municipal Licenses
195.00
State Registration Fees
58.80
Late Fees
21.00
Marriage Licenses Issued
275.00
275.00
Employee Contributions
999.96
999.96
Redemption
61,017.32
61,017.32
Escrow
10,060.83
10,060.83
Shade Tree
1,500.00
1,500.00
Police Outside Service
80,508.00
80,508.00
Dog Park
3,850.00
3,850.00
Forfeited Property
922.67
922.67
Public Defender Fees
6,596.00
6,596.00
COAH Fees
47,977.38
3,856.98
44,120.40
Payroll Deductions Payable
346,969.59
1,875.53
345,094.06
Net Payroll
740,626.28
740,626.28
Due to Current
-
Interest Earned
11.10
1,188.89
0.76
4.46
201.16
329.44
49.36
15.65
1.52
5.79
3.05
405.66
172.04
Total Receipts
285.90
1,302,491.92
275.76
1,004.42
2,076.69
157,265.59
49.36
938.32
1.52
6,601.79
3,860.03
44,526.06
1,085,892.38
Disbursements:
Expenditures Under RS4:19-15.11
State Registration Fees
55.20
Employee Claims
931.27
931.27
Redemption
61,017.32
61,017.32
Escrow
11,116.97
11,116.97
Shade Tree
1,014.40
1,014.40
Police Outside Service
56,160.00
56,160.00
Dog Park
4,000.00
4,000.00
Uniform Fire Safety
2,628.50
2,628.50
Veteran Affairs
140.00
140.00
Premiums
31,900.00
31,900.00
Public Defender Fees
5,700.00
5,700.00
Development Fees
957.30
957.30
Payroll Deductions Payable
344,567.05
344,567.05
Net Payroll
740,626.28
740,626.28
Due to State of NJ
423.00
375.00
48.00
Due to Current Fund
475.40
312.49
162.91
Total Disbursements
55.20
1,261,657.49
375.00
931.27
48.00
136,389.68
31,900.00
-
-
5,700.00
-
957.30
1,085,356.24
Balance December 31, 2018
2,567.73
$
249,125.97
$
88.62
$
978.92
$
22,951.75
$
81,257.00
$
7,574.48
$
4,187.04
$
351.48
$
1,002.30
$
4,421.52
$
99,880.48
$
26,432.38
$
67
EXHIBIT B-2
BOROUGH OF RIVERTON
Dog License Fund
Schedule of Reserve for Animal Control Fund Expenditures
For the Year Ended December 31, 2018
Balance December 31, 2017
272.36
$
Increased by:
2018 Dog License Fees Collected
195.00
$
Late Fees
21.00
216.00
Total
488.36
Decreased by:
Expenditures Under RS4:19-15.11
-
Due to Current Fund
28.36
28.36
Balance December 31, 2018
460.00
$
License Fees Collected
Year:
2016
280.00
$
2017
180.00
Total
460.00
$
68
EXHIBIT B-3
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Due to State of New Jersey
For the Year Ended December 31, 2018
Balance December 31, 2017
100.00
$
Increased by: Marriage Licenses Issued
275.00
Subtotal
375.00
Decreased by:
Cash Disbursed to State of New Jersey
375.00
Balance December 31, 2018
-
$
EXHIBIT B-4
Schedule of Payroll Deductions Payable
For the Year Ended December 31, 2018
Balance December 31, 2017
7,987.05
$
Increased by:
Payroll Deductions Received
345,080.66
Total
353,067.71
Decreased by:
Payroll Deductions Disbursed
344,425.05
Balance December 31, 2018
8,642.66
$
69
EXHIBIT B-5
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Tax Title Lien Payable
For the Year Ended December 31, 2018
Balance December 31, 2017
-
$
Increased by:
Tax Redemptions
61,017.32
Decreased by:
Disbursements
61,017.32
Balance December 31, 2018
-
$
EXHIBIT B-6
Schedule of Reserve For Payment of Unemployment Claims
For the Year Ended December 31, 2018
Balance December 31, 2017
14,175.91
$
Increased by:
Employee Withholdings
1,872.33
$
Interest Earned
201.16
2,073.49
Decreased by:
Disbursements
48.00
Balance December 31, 2018
16,201.40
$
EXHIBIT B-7
Schedule of Reserve For Flexible Spending Benefits
For the Year Ended December 31, 2018
Balance December 31, 2017
138.88
$
Increased by:
Employee Withholdings
999.96
Decreased by:
Payment of Flexible Spending Benefits
931.27
Balance December 31, 2018
207.57
$
70
EXHIBIT B-8
Balance December 31, 2017
71,988.03
$
Increased by:
Cash Receipts
58,038.21
Subtotal
130,026.24
Decreased by:
Cash Disbursed
12,074.27
Balance December 31, 2018
117,951.97
$
EXHIBIT B-9
Balance December 31, 2017
43,025.12
$
Increased by:
Premiums Collected
-
$
Interest Earned
49.36
49.36
Subtotal
43,074.48
Decreased by:
Payment of Premiums
31,900.00
Balance December 31, 2018
11,174.48
$
Schedule of Reserve For Tax Sale Premiums
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Developer's Escrow Deposits
For the Year Ended December 31, 2018
71
EXHIBIT B-10
Balance December 31, 2017
3,763.73
$
Increased by:
Receipts
1,500.00
Decreased by:
Disbursements
1,014.40
Balance December 31, 2018
4,249.33
$
EXHIBIT B-11
Balance December 31, 2018 and 2017
5,161.38
$
EXHIBIT B-12
Balance December 31, 2017
1,115.12
$
Increased by:
Receipts
Decreased by:
Disbursements
140.00
Balance December 31, 2018
975.12
$
Schedule of Reserve For Veteran Affairs
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Shade Tree Commission
For the Year Ended December 31, 2018
Schedule of Reserve For Environmental Fund
For the Year Ended December 31, 2018
72
EXHIBIT B-13
Balance December 31, 2017
48.59
$
Increased by:
Receipts from Municipal Court
6,596.00
Subtotal
6,644.59
Decreased by:
Disbursements
5,700.00
Balance December 31, 2018
944.59
$
EXHIBIT B-14
Balance December 31, 2017
3,248.72
$
Increased by:
Forfeited Property
922.67
Interest Earned
15.65
938.32
Balance December 31, 2018
4,187.04
$
EXHIBIT B-15
Balance December 31, 2018 and 2017
30,000.00
$
Schedule of Reserve For Compensated Absences
For the Year Ended December 31, 2018
Schedule of Reserve For Public Defender
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Police Forfeited Property
For the Year Ended December 31, 2018
73
EXHIBIT B-16
Balance December 31, 2017
349.96
$
Increased by:
Receipts from Municipal Court
-
$
Interest Earned
1.52
1.52
Balance December 31, 2018
351.48
$
EXHIBIT B-17
Balance December 31, 2017
16,020.00
$
Increased by:
Receipts
80,508.00
Subtotal
96,528.00
Decreased by:
Disbursements
56,160.00
Balance December 31, 2018
40,368.00
$
Schedule of Reserve For Off Duty Police
For the Year Ended December 31, 2018
Schedule of Reserve For POAA Funds
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
Trust - Other Funds
74
EXHIBIT B-18
Balance December 31, 2017
150.00
$
Increased by:
Contributions
3,850.00
Subtotal
4,000.00
Decreased by:
Payments
4,000.00
Balance December 31, 2018
-
$
EXHIBIT B-19
Balance December 31, 2017
3,500.00
$
Increased by:
Receipts
Subtotal
3,500.00
Decreased by:
Payments made
2,628.50
Balance December 31, 2018
871.50
$
Schedule of Reserve For Uniform Fire Safety
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Dog Park
For the Year Ended December 31, 2018
75
GENERAL CAPITAL FUND
EXHIBIT C-2
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Cash - Treasurer
For the Year Ended December 31, 2018
Balance December 31, 2017
426,490.44
$
Receipts:
Current Fund Budget Appropriation -
Capital Improvement Fund
27,137.00
$
Grants Receivable
48,750.00
Sale of Serial Bonds
1,995,000.00
Premium on Sale of Serial Bonds
251,282.00
Reserve for Debt Service
5,674.28
Improvement Authorization Refund
249.33
Due to Current Fund
1,781.79
2,329,874.40
Total
2,756,364.84
Disbursements:
Improvement Authorizations
296,370.23
Bond Anticipation Notes
1,730,672.00
Improvement Authorizations Refund
249.33
Due to Current Fund
1,559.30
2,028,850.86
Balance December 31, 2018
727,513.98
$
77
EXHIBIT C-3
BOROUGH OF RIVERTON
General Capital Fund
Analysis of General Capital Cash and Investments
For the Year Ended December 31, 2018
Fund Balance
18,478.88
$
Capital Improvement Fund
256.76
Due from Current Fund
(20,248.55)
Due to Current Fund
11,738.11
Reserve for Debt
5,674.28
Improvement Authorizations:
Ordinance
Number
2002-4
Various Improvements
1,211.66
2007-3
Various Improvements:
Purchase of Police Equipment
591.17
2007 Road Program
18,316.79
Office Equipment
3,681.51
2010-4
Various Improvements
(2,430.10)
2011-8
Various Improvements
29,780.00
2013-5
Various Improvements
215.79
2014-8
Multi-purpose:
Police Vehicles
471.30
Borough Roof and Police remodeling
501.05
Acquisition of Public Works Equipment
4,574.53
Acquisition of Fire Truck
1,787.00
2015-2
Multi-purpose:
Improvements to Riverton Park
(8,350.52)
Road Improvements
63,341.05
Acquisition of Street Signs
10,000.00
Acquisition of Public Works Equipment
187.00
Sewer System-Wide Improvements
6,397.40
2016-4
Multi-purpose:
Acquisition of Computer Hardware
1,099.27
Acquisition of Fire Equipment
16,740.00
2017-06
Multi-purpose:
Acquisition of Street Safety Signs
6,828.49
Road Improvements
89,213.73
Acquisition of Emergency Back-up Generator
1,207.26
Acquisition of Fire Equipment
349.71
2018-03
Multi-purpose:
Acquisition of Public Works Equipment
5,174.00
Road Program - Beachwood/Homewood
256,294.35
Acquisition of Police Equipment
1,121.00
Acquisition of Sewer Equipment
203,262.10
Acquisition of Fire Equipment
48.96
Total
727,513.98
$
78
EXHIBIT C-4
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Deferred Charges to Future Taxation - Funded
For the Year Ended December 31, 2018
Balance December 31, 2017
-
$
Improvement Costs Funded by:
Serial Bond Issued
1,995,000.00
$
Premium on Sale of Bonds
251,282.00
2,246,282.00
2,246,282.00
Decreased by:
Bond Premium Utilized for Payment
of Unfunded Debt
251,282.00
Balance December 31, 2018
1,995,000.00
$
79
EXHIBIT C-5
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Deferred Charges to Future Taxation - Unfunded
For the Year Ended December 31, 2018
Analysis of Balance
December 31, 2018
Financed by
Balance
Transferred to
Balance
Bond
Unexpended
Ordinance
December 31,
2018
Paid by
Deferred Taxation
December 31,
Aniticpation
Improvement
Number
Improvement Description
2017
Authorizations
Budget
Funded
2018
Notes
Expenditures
Authorization
2009-5
2009 Road Program
65,636.32
$
-
$
-
$
-
$
65,636.32
$
-
$
-
$
65,636.32
$
2010-4
Various Capital Improvements
174,312.00
117,000.00
57,312.00
26,030.10
31,281.90
2011-8
Various Capital Improvements
40,250.00
40,250.00
-
2013-5
Various Capital Improvements
52,475.00
29,000.00
23,475.00
23,475.00
2013-7
Upgrades to Sewer System
42,500.00
42,500.00
-
2014-8
Various Capital Improvements
682,704.00
682,704.00
-
2015-2
Various Capital Improvements
476,971.00
476,971.00
-
2016-4
Various Capital Improvements
232,750.00
232,750.00
-
2017-06
Various Capital Improvements
338,247.00
338,247.00
-
2017-06
Various Capital Improvements
515,610.00
515,610.00
-
2,105,845.32
$
515,610.00
$
228,750.00
$
2,246,282.00
$
146,423.32
$
-
$
26,030.10
$
120,393.22
$
Improvement Authorizations - Unfunded
120,393.22
$
Less - Unexpended Proceeds from Bond
Anticipation Notes:
Total
120,393.22
$
80
EXHIBIT C-6
BOROUGH OF RIVERTON
General Capital Fund
Statement of Grants Receivable
For the Year Ended December 31, 2018
Balance December 31, 2017
108,250.00
$
Decreased by:
Cash received
48,750.00
$
Canceled
48,750.00
Balance December 31, 2018
59,500.00
$
Analysis of Balance
Burlington County Park Development Grant - Memorial Park
10,500.00
$
Department of Transportation - 2017 Road Improvements
49,000.00
59,500.00
$
81
EXHIBIT C-7
BOROUGH OF RIVERTON
General Capital Fund
Schedule of General Serial Bonds
For the Year Ended December 31, 2018
Amount
Maturities of
of
Bonds Outstanding
Balance
Balance
Date of
Original
December 31, 2018
Interest
December 31,
December 31,
Purpose
Issue
Bonds
Date
Amount
Rate
2017
Issued
Decreased
2018
General Bonds of 2018
8/23/2018
1,995,000
$
8/1/2019
135,000.00
$
4.00%
-
$
1,995,000.00
$
-
$
1,995,000.00
$
8/1/2020
130,000.00
5.00%
8/1/2021
140,000.00
5.00%
8/1/2022
145,000.00
5.00%
8/1/2023
155,000.00
5.00%
8/1/2024
160,000.00
5.00%
8/1/2025
170,000.00
5.00%
8/1/2026
180,000.00
5.00%
8/1/2027
185,000.00
5.00%
8/1/2028
195,000.00
5.00%
8/1/2029
195,000.00
4.00%
8/1/2030
205,000.00
5.00%
Total
-
$
1,995,000.00
$
-
$
1,995,000.00
$
82
EXHIBIT C-8
BOROUGH OF RIVERTON
General Captial Fund
Schedule of Bond Anticipation Notes
For the Year Ended December 31, 2018
Date of
Issue of
Balance
Balance
Ordinance
Original
Date of
Date of
Interest
December 31,
December 31,
Number
Improvement Description
Note
Issue
Maturity
Rate
2017
Increased
Decreased
2018
2010-4
Various Capital Improvements
12/14/16
12/14/17
12/14/18
Nil.
117,000.00
117,000.00
-
2011-8
Various Capital Improvements
12/14/16
12/14/17
12/14/18
Nil.
40,250.00
40,250.00
-
2013-5
Various Capital Improvements
12/14/16
12/14/17
12/14/18
Nil.
29,000.00
29,000.00
-
2013-7
Sewer System Upgrades
12/14/16
12/14/17
12/14/18
Nil.
42,500.00
42,500.00
-
Investment in Current Fund
228,750.00
228,750.00
2014-8
Various Capital Improvements
9/9/14
9/8/17
9/7/18
2.25%
682,704.00
682,704.00
-
2015-02
Various Capital Improvements
9/8/15
9/8/17
9/7/18
2.25%
476,971.00
476,971.00
-
2016-04
Various Capital Improvements
9/8/16
9/8/17
9/7/18
2.25%
232,750.00
232,750.00
-
2017-06
Various Capital Improvements
9/8/16
9/8/17
9/7/18
2.25%
338,247.00
338,247.00
-
1,959,422.00
$
-
$
1,959,422.00
$
-
$
Nil. = Held as an investment in the Current Fund
Paid by Budget
-
$
228,750.00
$
Paid by Serial Bonds
1,730,672.00
-
$
1,959,422.00
$
83
EXHIBIT C-9
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Improvement Authorizations
For the Year Ended December 31, 2018
2018 Authorizations
Deferred
Charges
Balance
Capital
To Future
Paid
Balance
Ordinance
Ordinance
December 31, 2017
Improvement
Grant
Taxation
or
December 31, 2018
Number
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Receivable
Unfunded
Charged
Canceled
Funded
Unfunded
2002-4
Multi-purpose:
07/11/02
c. Repairs to Seawall
16,000.00
$
1,211.66
$
-
$
-
$
-
$
-
$
-
$
-
$
1,211.66
$
-
$
2007-3
Multi-purpose:
05/21/07
153,800.00
a. Purchase of Police Equipment
741.17
150.00
591.17
b. 2007 Road Program
18,166.79
(150.00)
18,316.79
d. Office Equipment
3,681.51
3,681.51
2009-5
2009 Road Program
12/12/09
200,000.00
65,636.32
65,636.32
2010-4
Multi-purpose:
07/14/10
c. Improvements to Park
201,875.00
34,579.90
3,298.00
31,281.90
2011-8
Multi-purpose:
06/08/11
c. 2011 Road Program
50,000.00
29,780.00
29,780.00
2013-5
Multi-purpose:
05/08/13
a. Purchase of Loader Bucket
15,500.00
217.15
215.79
1.36
b. Imps and Upgrades to WW Treatment Tank
30,000.00
23,189.97
23,189.97
c. Acq. of Equipment for Public Works Dept.
15,000.00
283.67
283.67
2014-8
Multi-purpose:
06/11/14
a. Police Vehicles
68,000.00
471.30
471.30
b. Borough Roof and Police Remodeling
38,000.00
501.05
501.05
e. Acquisition of Public Works Equipment
43,620.00
5,873.53
1,299.00
4,574.53
f. Acquisition of Fire Truck
450,000.00
1,787.00
1,787.00
Forward
23,801.13
$
162,319.89
$
-
$
-
$
-
$
4,597.00
$
-
$
61,130.80
$
120,393.22
$
84
EXHIBIT C-9
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Improvement Authorizations
For the Year Ended December 31, 2018
2018 Authorizations
Deferred
Charges
Balance
Capital
To Future
Paid
Balance
Ordinance
Ordinance
December 31, 2017
Improvement
Grant
Taxation
or
December 31, 2018
Number
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Receivable
Unfunded
Charged
Canceled
Funded
Unfunded
Continued
23,801.13
$
162,319.89
$
-
$
-
$
-
$
4,597.00
$
-
$
61,130.80
$
120,393.22
$
2015-2
Multi-purpose:
05/06/15
b. Improvements to Riverton Park
287,500.00
$
7,584.61
5,435.13
2,149.48
c. Road Improvements
366,675.00
63,341.05
63,341.05
d. Acquisition of Street Signs
10,000.00
500.00
9,500.00
10,000.00
e. Acquisition of Public Works Equipment
210,500.00
187.00
187.00
f. Sewer System-Wide Improvements
50,000.00
17,830.72
11,433.32
6,397.40
2016-4
Multi-purpose:
06/08/16
b. Acquisition of Computer Hardware
6,000.00
1,099.27
1,099.27
c. Aqusition of a Police Sport Utility Vehicle
39,000.00
306.60
306.60
e. Acqusition of Fire Equipment
100,000.00
41,500.00
24,760.00
16,740.00
2017-06
Multi-purpose:
7/12/2017
a. Acquisition of Street Safety Signs
11,000.00
6,828.49
6,828.49
b. Road Improvements
444,050.00
215,645.20
77,431.47
138,213.73
c. Aqusition of a Police Sport Utility Vehicle
39,000.00
1,950.00
37,050.00
39,000.00
d. Acqusition of Emergency Back-Up Generator
45,500.00
2,275.00
43,225.00
44,292.74
1,207.26
e. Acqusition of Fire Equipment
12,500.00
625.00
11,875.00
12,150.29
349.71
2018-03
Multi-purpose:
07/17/18
a. Acquisition of Public Works Equipment
20,200.00
1,010.00
19,190.00
20,200.00
b. Road Program - Beachwood/Homewood
2,847,505.00
14,235.00
270,470.00
28,410.65
256,294.35
c. Aqusition of a Police Equipment
10,392.00
520.00
9,872.00
9,271.00
1,121.00
d. Acqusition of Sewer Equipment
212,450.00
10,622.00
201,828.00
15,361.92
197,088.08
e. Acqusition of Fire Equipment
15,000.00
750.00
14,250.00
14,951.04
48.96
Total
29,151.13
$
618,292.83
$
27,137.00
$
-
$
515,610.00
$
307,601.16
$
-
$
762,196.58
$
120,393.22
$
Encumbrances Payable
11,348.02
$
Due from Current Fund
(117.09)
Cash Disbursed
296,370.23
Total
307,601.16
$
85
EXHIBIT C-10
BOROUGH OF RIVERTON
General Capital Fund
Statement of Capital Improvement Fund
For the Year Ended December 31, 2018
Balance December 31, 2017
256.76
$
Increased by:
2018 Budget Appropriation
27,137.00
27,393.76
Decreased by:
Appropriated to Finance Improvement Authorization
27,137.00
Balance December 31, 2018
256.76
$
86
EXHIBIT C-11
BOROUGH OF RIVERTON
General Capital Fund
Statement of Bonds and Notes Authorized but not Issued
For the Year Ended December 31, 2018
Bond
Balance
Anticipation
Balance
Ordinance
December 31,
2018
Notes
December 31,
Number
Improvement Description
2017
Authorizations
Issued
2018
2009-5
2009 Road Program
65,636.32
$
-
$
-
$
65,636.32
$
2010-4
Multi-Purpose
57,312.00
57,312.00
2013-5
Multi-Purpose
23,475.00
23,475.00
2017-6
Multi-Purpose
515,610.00
515,610.00
Total
146,423.32
$
515,610.00
$
515,610.00
$
146,423.32
$
87
PUBLIC ASSISTANCE FUND
EXHIBIT D-1
BOROUGH OF RIVERTON
PUBLIC ASSISTANCE FUND
Schedule of Cash - Treasurer
For the Year Ended December 31, 2018
P.A.T.F.
I
Balance December 31, 2017
733.82
$
Increased by Receipts:
Interest Earned
3.21
Total
737.03
Decreased by Disbursements
Balance December 31, 2018
737.03
$
89
BOROUGH OF RIVERTON
PART II
Schedule of Findings and Recommendations
For the Year Ended December 31, 2018
BOROUGH OF RIVERTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2018
Section 1 -- Summary of Auditor's Results
Financial Statement Section
Type of auditor's report issued:
Unmodified
Internal control over financial reporting:
1) Material weaknesses identified?
yes
X
no
2) Were reportable conditions identified that were
not considered to be material weaknesses?
yes
X
none reported
Noncompliance material to financial statements noted?
yes
X
no
Federal Awards
A Federal Single Audit was not required
State Awards
A State Single Audit was not required
91
BOROUGH OF RIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2018
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.
No Findings Identified.
92
BOROUGH OF RIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2018
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 15-08-OMB.
FEDERAL AWARDS
A federal single audit was not required.
STATE AWARDS
A state single audit was not required.
93
BOROUGH OF RIVERTON
Summary Schedule of Prior Year Audit Findings
And Recommendations as Prepared by Management
This section identifies the status of prior 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 15-08.
FINANCIAL STATEMENT FINDINGS
Finding #2017-1
Condition:
Bank reconciliations were not completed on a monthly basis 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.
94
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2018:
Name of
Amount of
Corporate
Name
Title
Bond
Surety
Suzanne Cairns Wells
Mayor
William Corbi
President of Council
Renee Azelby
Councilwoman
Armand Bianchini
Councilman
Kirk Fullerton
Councilman
Kenneth Mills
Councilman
James Quinn
Councilman
Michelle Hack
Borough Clerk and Registrar of
Vital Statistics
$
35,000
(B)
Dawn Bass
Chief Financial Officer
200,000
(B)
Dolores Rosso
Tax Collector
175,000
(B)
Nicole Chicone-Shively
Finance Clerk and Deputy Registrar
175,000
(B)
Roger Fort
Construction Code Official
10,000
(A)
Mary Lodato
Code Enforcement and Zoning Official
10,000
(A)
James Duda
Assessor
Alaimo Associates
Engineer
Tom Coleman
Solicitor
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 of our audit.
Respectfully submitted,
INVERSO & STEWART, LLC
Certified Public Accountant
Robert P. Inverso
Certified Public Accountant
Registered Municipal Accountant
July 19, 2019
95
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"...gs 92 Schedule of Federal Awards and State Financial Assistance Findings 93 Summary Schedule of Prior Year Audit Findings 94 Officials in Office and Surety Bonds 95 Acknowledgment 95 -b- BOROUGH OF RIVERTON PART I Report of Audit of Financial Statements For the Year Ended December 31, 2018 INVERSO & STEWA..."
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Michelle Hack
Borough Clerk and Registrar of Vital Statistics
Dawn Bass
Chief Financial Officer
Robert P. Inverso
Certified Public Accountant
hidden@email.com
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