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Executive Summary
The Borough of Riverton's audit report for the fiscal year ending December 31, 2019, prepared by Inverso & Stewart, LLC, includes an independent auditor's report, a report on internal control over financial reporting and compliance, and detailed financial statements for various funds including the Current Fund, Trust Funds, General Capital Fund, and Public Assistance Fund. The audit adheres to Government Auditing Standards and requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The report includes a schedule of findings and recommendations, schedule of financial statement findings, and a summary schedule of prior year audit findings. The report also lists the officials in office and their respective surety bonds.
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Document Text
--- Document: 2019 Riverton Borough Audit Report Document ---
BOROUGH OF RIVERTON
County of Burlington
Report of Audit of Financial Statements
For the Year Ended December 31, 2019
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 2018 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 Improvement Authorizations
C-8
83
Statement of Capital Improvement Fund
C-9
85
Statement of Bonds and Notes Authorized But Not Issued
C-10
86
Public Assistance Fund
Schedule of Cash - Treasurer
D-1
88
PART II
Schedule of Findings and Recommendations
Schedule of Findings and Questioned Costs
90
Schedule of Financial Statement Findings
91
Schedule of Federal Awards and State Financial Assistance Findings
92
Summary Schedule of Prior Year Audit Findings
93
Officials in Office and Surety Bonds
94
Acknowledgment
94
-b-
BOROUGH OF RIVERTON
PART I
Report of Audit of Financial Statements
For the Year Ended December 31, 2019
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@inversocpa.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, 2019 and
2018, 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, 2019 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, 2019 and 2018, 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, 2019 and 2018, and the results of its operations and changes in fund balance –
regulatory basis of such funds for the years then ended, and the revenues - regulatory basis, expenditures - regulatory
basis of the various funds, and general fixed assets, for the year ended December 31, 2019 in conformity with accounting
principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey as described in Note 1.
Other 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 24, 2020 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 24, 2020
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@inversocpa.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, 2019,
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 24, 2020. 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 24, 2020
6
EXHIBIT A
BOROUGH OF RIVERTON
Current Fund
Statement of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2019 and 2018
Reference
2019
2018
ASSETS
Regular Fund:
Cash - Treasurer
A-4
3,172,963.23
$
3,040,739.90
$
Cash - Collector's Change Fund
120.00
120.00
Total
3,173,083.23
3,040,859.90
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes Receivable
A-5
160,083.36
137,903.63
Revenue Accounts Receivable
A-6
3,356.89
5,147.44
Sewer Rent Receivable
A-7
26,546.06
30,492.32
Due from Animal Control Fund
B
2,478.25
2,104.13
Due from Trust Other Fund
B
38,180.71
37,839.45
Due from Capital Fund
C
11,688.23
11,738.11
Total
242,333.50
225,225.08
Deferred Charges;
Emergency Authorization (40A:4-47)
25,000.00
Total Regular Fund
3,440,416.73
3,266,084.98
Federal and State Grant Fund:
Cash - Treasurer
A-4
8,389.29
1,089.43
Federal and State Grants Receivable
A-16
67,248.00
64,248.00
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
113,701.84
103,401.98
Total
3,554,118.57
$
3,369,486.96
$
(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, 2019 and 2018
Reference
2019
2018
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Liabilities:
Appropriation Reserves
A-3
247,596.66
$
238,532.79
$
Reserve for Encumbrances
A-3
82,964.49
44,877.68
Tax Overpayments
A-10
26,973.59
26,710.77
Prepaid Taxes
A-11
67,976.88
55,041.00
Sewer Rent Overpayments
A-12
1,553.10
1,897.24
Prepaid Sewer Rents
A-4
2,801.78
Due to 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 General Capital Fund
C
31,305.91
20,248.55
Due to State of NJ - Construction Code Fees
A-13
295.28
579.43
Due County for Added Taxes
A-14
1,655.55
1,527.33
Due to State of N.J. for Senior Citizen and
Veteran Deductions
A-8
750.00
500.00
Local District School Tax Payable
A-15
1,901,678.95
1,847,748.41
Total Liabilities
2,410,016.74
2,282,127.75
Reserve for Receivables and Other Assets
A
242,333.50
225,225.08
Fund Balance
A-1
788,066.49
758,732.15
Total Regular Fund
3,440,416.73
3,266,084.98
Federal and State Grant Fund:
Reserve for Encumbrances
A-18
1,480.76
Due to General Capital Fund
C
37,155.54
Unappropriated Reserves
A-17
7,156.27
438.90
Appropriated Reserves
A-18
67,909.27
102,963.08
Total Federal and State Grant Fund
113,701.84
103,401.98
Total
3,554,118.57
$
3,369,486.96
$
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, 2019 and 2018
2019
2018
Revenue and Other Income Realized:
Fund Balance Utilized
200,000.00
$
185,000.00
$
Miscellaneous Revenue Anticipated
995,312.06
1,016,890.87
Receipts from Delinquent Taxes
126,222.70
140,615.31
Receipts from Current Taxes
8,537,679.08
8,442,600.00
Nonbudget Revenues
24,080.03
41,223.91
Other Credits to Income:
Unexpended Prior Year Appropriation Reserves and Encumbrances Payable
71,233.65
60,642.64
Total Revenue and Other Income Realized
9,954,527.52
9,886,972.73
Expenditures
Operations Within "CAPS":
Salaries and Wages
1,026,382.00
1,005,329.48
Other Expenses
1,571,579.00
1,572,559.52
Deferred Charges and Statutory Expenditures Within "CAPS"
227,564.00
179,555.00
Operations Excluded from "CAPS":
Other Expenses
25,533.49
82,385.28
Capital Improvements
59,475.00
27,137.00
Municipal Debt Service Excluded from "CAPS"
222,072.92
267,690.12
Local District School Tax
5,500,888.00
5,393,027.00
County Taxes
1,111,279.41
1,119,523.58
Due County for Added Taxes
1,655.55
1,527.33
Prior Year Veteran/Senior Citizen
500.00
250.00
Prior Year Overpayments Created
3,263.81
Interfund Loans Made
11,582.00
Total
9,750,193.18
9,660,566.31
Excess in Revenue
204,334.34
226,406.42
Adjustments to Income Before Surplus:
Expenditures Included Above which are by Statute Deferred
Charges to Budget of Succeeding Year
25,000.00
Excess in Revenue & Statutory Excess to Fund Balance
229,334.34
226,406.42
Fund Balance January 1
758,732.15
717,325.73
Total
988,066.49
943,732.15
Decreased by Utilization as Anticipated Revenue
200,000.00
185,000.00
Balance December 31
788,066.49
$
758,732.15
$
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, 2019
SPECIAL
EXCESS
BUDGET
NJS 40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
200,000.00
$
-
$
200,000.00
$
-
$
Miscellaneous Revenues:
Licenses - Other
900.00
1,325.00
425.00
Fees and Permits - Other
1,200.00
1,700.00
500.00
Fines and Costs
Municipal Court
72,800.00
77,329.17
4,529.17
Interest and Costs on Taxes
35,000.00
36,741.07
1,741.07
Interest on Investments and Deposits
7,500.00
20,787.24
13,287.24
Cell Tower Rental Fees
34,000.00
31,121.70
(2,878.30)
Sewer Rent Fees
429,500.00
502,529.16
73,029.16
Payments in Lieu of Taxes
9,000.00
19,910.48
10,910.48
Comcast Fees
10,500.00
9,458.83
(1,041.17)
Park Fees
3,500.00
3,640.00
140.00
Energy Receipts Taxes
230,577.00
230,577.00
Uniform Construction Code Fees
30,000.00
32,794.69
2,794.69
Uniform Fire Safety Act
5,000.00
6,439.95
1,439.95
Reserve for Debt Service
5,674.28
5,674.28
Miscellaneous Revenues Offset with Appropriations:
Clean Communities
6,807.99
6,807.99
Recycling Tonnage Grant
3,749.49
3,749.49
Bulletproof Vest
438.90
438.90
Alcohol Education Rehab
241.12
241.12
Green Communities
3,000.00
3,000.00
Body Armor
1,045.99
1,045.99
Total
875,590.18
14,844.59
995,312.06
104,877.29
Receipts from Delinquent Taxes
130,000.00
126,222.70
(3,777.30)
Amount to be Raised by Taxes for Support of
Municipal Budget - Local Tax for Municipal Purposes
2,064,460.94
2,101,145.34
36,684.40
Budget Totals
3,270,051.12
14,844.59
3,422,680.10
137,784.39
$
Nonbudget Revenues
24,080.03
Total
3,270,051.12
$
14,844.59
$
3,446,760.13
$
(Continued)
10
EXHIBIT A-2
BOROUGH OF RIVERTON
Current Fund
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2019
Analysis of Realized Revenue
Allocation of Current Tax Collections:
Revenue from Collections
8,537,679.08
$
Allocated to School and County Taxes
6,613,822.96
Balance for Support of Municipal Budget Appropriations
1,923,856.12
Add Appropriation - Reserve for Uncollected Taxes
177,289.22
Amount for Support of Municipal Budget Appropriations
2,101,145.34
$
Receipts from Delinquent Taxes:
Delinquent Tax Collections
126,222.70
$
Licenses - Other:
Registrar of Vital Statistics
1,325.00
$
Other
Total
1,325.00
$
Fees and Permits - Other:
Street Opening Permits
1,200.00
$
Vacant Property Registration Fees
500.00
Total
1,700.00
$
Miscellaneous Revenue Not Anticipated:
Pension refunds
595.53
$
Application Fees
260.00
Street Opening Application Fees
200.00
Recycling
375.00
Food Truck Fee
600.00
Raffle
420.00
Fence/Sign Permits
348.60
Cat Licenses
40.00
Admin Fee - SC & Vet
480.00
Police Reports
1,222.00
Sewer Penalties
7,590.54
Sewer Connection Fee
3,105.00
Prior Year Void Checks
248.00
DMV Inspections
1,607.00
Other Refunds
595.53
Snow Removal
1,725.00
Miscellaneous
4,667.83
Total
24,080.03
$
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, 2019
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
2,500.00
$
2,500.00
$
1,684.05
$
281.71
$
534.24
$
-
$
Borough Clerk
Salaries and Wages
64,088.00
64,088.00
61,623.00
2,465.00
Other Expenses
30,450.00
22,950.00
16,372.91
1,401.70
5,175.39
Financial Administration:
-
Salaries and Wages
55,460.00
55,460.00
53,326.46
2,133.54
Other Expenses
4,450.00
4,450.00
3,615.88
834.12
Audit Services
-
Other Expenses
27,800.00
27,800.00
27,800.00
-
Computerized Data Processing
-
Other Expenses
15,000.00
14,000.00
13,747.50
252.50
Collection of Taxes
-
-
Salaries and Wages
29,775.00
29,775.00
26,836.37
2,938.63
Other Expenses
8,280.00
6,280.00
5,556.26
723.74
Assessment of Taxes
-
-
Salaries and Wages
11,484.00
11,484.00
11,042.18
441.82
Other Expenses
2,950.00
2,450.00
2,222.80
227.20
Legal Services & Costs
-
-
Other Expenses
20,000.00
20,000.00
18,465.00
1,535.00
Engineer
-
-
Other Expenses
3,000.00
3,000.00
2,690.00
310.00
Economic Development
-
-
Other Expenses
3,500.00
3,500.00
3,449.45
50.55
Land Use Administration:
-
-
Planning Board:
-
-
Salaries and Wages
11,749.00
11,749.00
11,702.83
46.17
Other Expenses
20,925.00
20,925.00
18,088.00
1,011.00
1,826.00
Affordable Housing Litigation
25,000.00
16,747.66
8,252.34
(Continued)
12
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2019
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Operations Within "CAPS" (Continued)
General Government (Continued)
Insurance:
Liability Insurance
94,121.00
$
94,121.00
$
93,872.00
$
-
$
249.00
$
-
$
Worker Compensation
67,320.00
67,320.00
67,320.00
-
Employees Group Insurance
300,505.00
303,505.00
302,489.03
1,015.97
Public Safety:
Police:
Salaries and Wages
535,132.00
535,132.00
487,238.50
47,893.50
Other Expenses
45,718.00
45,718.00
36,652.40
2,765.04
6,300.56
Office of Emergency Management
Other Expenses
750.00
750.00
250.57
499.43
Aid to Volunteer Ambulance Squad
Other Expenses
-
-
Fire Department
Other Expenses
25,000.00
25,000.00
21,103.87
2,228.19
1,667.94
Fire Official
Salaries and Wages
5,546.00
5,546.00
5,332.53
213.47
Other Expenses
3,200.00
3,200.00
2,940.31
259.69
Public Works:
Road Repairs and Maintenance
Salaries and Wages
222,714.00
222,714.00
208,888.19
13,825.81
Other Expenses
49,700.00
49,700.00
34,768.82
2,090.32
12,840.86
Shade Tree Commission
Other Expenses
45,000.00
45,000.00
38,265.45
5,144.68
1,589.87
Solid Waste Collection
Other Expenses
122,912.00
123,712.00
113,996.00
9,571.60
144.40
Public Buildings and Grounds
Other Expenses
30,000.00
30,000.00
27,350.90
589.00
2,060.10
Vehicle Maintenance
Other Expenses
31,500.00
31,500.00
30,008.93
566.70
924.37
Registrar of Vital Statistics:
Salaries and Wages
4,921.00
4,921.00
4,731.72
189.28
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, 2019
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
$
4,500.00
$
2,828.00
$
370.00
$
1,302.00
$
-
$
Parks and Recreation:
-
Recreation Services:
-
-
Other Expenses
17,500.00
17,500.00
12,593.34
2,146.41
2,760.25
Celebration of Public Events:
-
Other Expenses
600.00
600.00
600.00
Contribution to Senior Citizens Club:
-
Other Expenses
-
-
Utilities:
-
Electricity
78,000.00
69,600.00
58,488.53
6,479.36
4,632.11
Street Lighting
45,000.00
45,000.00
37,551.40
3,755.21
3,693.39
Telephone
15,000.00
20,400.00
19,720.22
679.78
Water
4,750.00
4,750.00
4,070.35
679.65
Fire Hydrant Service
44,500.00
43,500.00
37,929.27
5,570.73
Sewerage Processing:
-
Salaries and Wages
94,797.00
55,399.00
53,924.19
1,474.81
Other Expenses
114,500.00
165,898.00
129,006.25
31,467.04
5,424.71
Gasoline
31,000.00
31,000.00
22,990.33
8,009.67
Landfill and Solid Waste Disposal Costs - Landfill Fees
102,000.00
102,000.00
91,340.63
9,646.53
1,012.84
Municipal Court:
Other Expenses
86,000.00
86,000.00
1,638.33
84,361.67
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
33,864.00
30,114.00
29,303.20
810.80
Other Expenses
850.00
4,300.00
320.00
3,450.00
530.00
Total Operations - Within "CAPS"
2,572,961.00
2,597,961.00
2,275,883.61
82,964.49
239,112.90
-
Detail:
Salaries and Wages
1,073,530.00
1,026,382.00
953,949.17
-
72,432.83
-
Other Expenses
1,499,431.00
1,571,579.00
1,321,934.44
82,964.49
166,680.07
-
(Continued)
14
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2019
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Municipal - Within "CAPS":
DEFERRED CHARGES
Emergency Authorizations
-
STATUTORY EXPENDITURES:
Contribution to:
Social Security System (O.A.S.I.)
52,116.00
$
52,116.00
$
44,882.24
$
-
$
7,233.76
$
-
$
Police & Fireman's Retirement System
56,051.00
56,051.00
56,051.00
-
Public Employees' Retirement System
119,397.00
119,397.00
119,397.00
-
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
227,564.00
227,564.00
220,330.24
-
7,233.76
-
Total General Appropriations -
For Municipal Purposes Within "CAPS"
2,800,525.00
2,825,525.00
2,496,213.85
82,964.49
246,346.66
-
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
1,250.00
1,250.00
1,250.00
Public and Private Programs Offset By Revenues:
-
-
Body Armor Grant
-
1,045.99
1,045.99
-
Green Communities
3,000.00
3,000.00
Bullet Proof Vest
438.90
438.90
438.90
-
Recycling Tonnage Grant
-
3,749.49
3,749.49
-
Alcohol Education Rehab
-
241.12
241.12
-
Clean Communities Grant
6,807.99
6,807.99
Total Operations - Excluded From "CAPS"
10,688.90
25,533.49
24,283.49
1,250.00
-
Detail:
Other Expenses
10,688.90
25,533.49
24,283.49
-
1,250.00
-
Capital Improvements - Excluded From "CAPS"
Capital Improvement Fund
59,475.00
59,475.00
59,475.00
-
-
Total Capital Improvements - Excluded From "CAPS"
59,475.00
59,475.00
59,475.00
-
-
-
(Continued)
15
EXHIBIT A-3
BOROUGH OF RIVERTON
Current Fund
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2019
Expended
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Encumbered
Reserved
Canceled
Municipal Debt Service - Excluded From "CAPS"
Payment of Bond Principal
135,000.00
$
135,000.00
$
135,000.00
$
-
$
-
$
-
$
Interest on Bonds
87,073.00
87,073.00
87,072.92
-
0.08
Total Municipal Debt Service - Excluded From "CAPS"
222,073.00
222,073.00
222,072.92
-
-
0.08
Total General Appropriations for Municipal
Purposes Excluded From "CAPS"
292,236.90
307,081.49
305,831.41
-
1,250.00
0.08
Subtotal General Appropriations
3,092,761.90
3,132,606.49
2,802,045.26
82,964.49
247,596.66
0.08
Reserve for Uncollected Taxes
177,289.22
177,289.22
177,289.22
-
-
TOTAL GENERAL APPROPRIATIONS
3,270,051.12
$
3,309,895.71
$
2,979,334.48
$
82,964.49
$
247,596.66
$
0.08
$
Original Budget
3,270,051.12
$
Emrgency Appropriation
25,000.00
Amended by NJS 40A:4-87
14,844.59
3,309,895.71
$
Expended - Paid or Charged:
Reserve for State Grants
15,283.49
$
Reserve for Uncollected Taxes
177,289.22
Disbursed
2,786,761.77
Total
2,979,334.48
$
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, 2019 and 2018
Reference
2019
2018
ASSETS
Animal Control Fund:
Cash - Treasurer
B-1
2,894.45
$
2,567.73
$
Other Funds:
Cash - Treasurer
B-1
298,115.48
249,125.97
Due from Current Fund
A
30,000.00
30,000.00
Total Other Funds
328,115.48
279,125.97
Total
331,009.93
$
281,693.70
$
LIABILITIES AND RESERVES
Dog License Fund:
Due to Current Fund
A
2,478.25
$
2,104.13
$
Due to State
20.20
3.60
Reserve for Dog Fund Expenditures
B-2
396.00
460.00
Total Dog License Fund
2,894.45
2,567.73
Other Funds:
Due State of New Jersey:
Marriage License Fees
B-3
50.00
-
Due to Current Fund
A
38,180.71
37,839.45
Payroll Deductions Payable
B-4
162.40
8,642.66
Tax Title Lien Redemption Payable
B-5
-
-
Reserve for Unemployment Compensation Trust
B-6
18,256.59
16,201.40
Reserve for Flexible Spending Account
B-7
470.09
207.57
Reserve for Developers Escrow Fund
B-8
81,881.18
117,951.97
Reserve for Tax Sale Premiums
B-9
78,507.32
11,174.48
Reserve for Shade Tree Commission
B-10
763.79
4,249.33
Reserve for Environmental Fund
B-11
5,161.38
5,161.38
Reserve for Veterans Affairs Fund
B-12
1,075.12
975.12
Reserve for Public Defender
B-13
2,539.09
944.59
Reserve for Police Forfeited Property
B-14
9,138.88
4,187.04
Reserve for Compensated Absences
B-15
30,000.00
30,000.00
Reserve for POAA Funds
B-16
368.68
351.48
Reserve for Off Duty Police
B-17
58,688.75
40,368.00
Reserve for Dog Park
B-18
-
-
Reserve for Uniform Fire Safety
B-19
2,871.50
871.50
Total Other Funds
328,115.48
279,125.97
Total
331,009.93
$
281,693.70
$
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, 2019 and 2018
Reference
2019
2018
ASSETS
Cash
C-2, C-3
551,355.25
$
727,513.98
$
Due from Current Fund
A
31,305.91
20,248.55
Due from Federal and State Grant Fund
A
37,155.54
-
Deferred Charges to Future Taxation:
Funded
C-4
1,860,000.00
1,995,000.00
Unfunded
C-5
516,448.32
146,423.32
Grants Receivable
C-6
10,500.00
59,500.00
Total
3,006,765.02
$
2,948,685.85
$
LIABILITIES, RESERVES
AND FUND BALANCE
Serial Bonds Payable
C-7
1,860,000.00
$
1,995,000.00
$
Due to Current Fund
A
11,688.23
11,738.11
Due to Federal and State Grant Fund
A
23,600.00
23,600.00
Improvement Authorizations:
Funded
C-8
409,000.31
762,196.58
Unfunded
C-8
433,673.66
120,393.22
Encumbrances Payable
C-8
65,567.18
11,348.02
Capital Improvement Fund
C-9
40,256.76
256.76
Reserve for Debt
144,500.00
5,674.28
Fund Balance
C-1
18,478.88
18,478.88
Total
3,006,765.02
$
2,948,685.85
$
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, 2019
Balance December 31, 2019 and 2018
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, 2019 and 2018
Reference
2019
2018
ASSETS
Cash
D-1
740.68
$
737.03
$
Total
740.68
$
737.03
$
LIABILITIES AND RESERVES
Reserve for Public Assistance
740.68
$
737.03
$
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, 2019
Balance
Balance
December 31,
December 31,
2018
Additions
Retirements
2019
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
6,125.00
643,954.54
Equipment
652,938.70
27,706.00
680,644.70
Vehicles
2,399,993.14
2,399,993.14
Total General Fixed Assets
5,418,855.28
$
33,831.00
$
-
$
5,452,686.28
$
Total Investment in General
Fixed Assets
5,418,855.28
$
33,831.00
$
-
$
5,452,686.28
$
The accompanying Notes to Financial Statements are an integral part of this statement.
21
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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
the 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, 2019
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, 2019
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, 2019
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, 2018 and decreased by
the amount deferred at December 31, 2019.
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, 2019
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 $4,561,293 as of December 31, 2019, $250,000 was insured under FDIC and the
remaining balance of $4,311,293 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
2019
2018
2017
2016
2015
Total Tax Rate without Business
Improvement District Tax Rate
3.590
$
3.549
$
3.478
$
3.338
$
3.272
$
Apportionment of Tax Rate:
Municipal
0.854
0.854
0.854
0.837
0.818
County
0.461
0.464
0.462
0.444
0.438
Local School
2.275
2.231
2.162
2.057
2.016
26
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 3. PROPERTY TAXES (CONTINUED)
Assessed Valuation
2019
241,706,486
$
2018
241,732,686
2017
242,009,500
2016
242,142,400
2015
241,817,400
Percentage of
Year
Tax Levy
Collections
Collections
2019
8,690,155
$
8,537,679
$
98.25%
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%
Comparison of Tax Levies and Collections
Tax Title
Delinquent
Total
Percentage of
Year
Liens
Taxes
Delinquent
Tax Levy
2019
-
$
160,083
$
160,083
$
1.84%
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%
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
2019
-
$
2018
-
2017
-
2016
-
2015
-
27
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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
2019
30,492
$
-
$
498,583
$
529,075
$
502,529
$
94.98%
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%
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
2019
788,066
$
225,000
$
28.55%
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%
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, 2019:
Interfund
Interfund
Fund
Receivables
Payables
Current Fund
52,347
$
75,770
$
Federal and State Grant Fund
38,065
37,156
Trust Fund:
Animal Control Fund
-
2,478
Other Trust Funds
30,000
38,181
General Capital Fund
68,461
35,288
188,873
$
188,873
$
28
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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.
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, 2019
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, 2019 was 28.69% 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, 2019, the Borough’s contractually required contribution to
the pension plan for the year ended December 31, 2019 is $120,014 and is payable by April 1, 2020. 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, 2018, the Borough’s contractually required contribution to the pension plan for the
year ended December 31, 2018 was $119,202, which was paid by April 1, 2019. Employee contributions to the pension
plan during the year ended December 31, 2019 were $42,749.
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, 2019 was 3.70% of the Borough’s covered payroll.
Based on the most recent PFRS measurement date of June 30, 2019, the State’s contractually required contribution, on-
behalf of the Borough, to the pension plan for the year ended December 31, 2019 is $15,470 and is payable by April 1,
2020. Based on the 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 was $13,273, which was paid on April 1,
2019.
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
2019
37,414
$
77,260
$
4,528
$
195
$
119,397
$
2018
20,556
42,793
2,668
-
66,017
2017
23,052
41,729
2,944
120
67,845
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, 2019, the Borough’s proportionate share of pension expense is $26,677. 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, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
At December 31, 2019, the Borough proportionate share of the net pension liability is $1,454,009 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
12,274
$
9,206
$
Changes of assumptions
49,822
469,922
Net Difference between projected and actual earnings
on pension plan investments
19,701
Changes in proportion
488,046
247,641
Borough contributions subsequent to the measurement
date
120,014
Total
670,156
$
746,470
$
$120,014 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the
year ending December 31, 2020. 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
2020
(58,043)
$
2021
(58,043)
2022
(87,710)
2023
77,083
2024
(69,615)
Total
(196,328)
$
31
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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
June 30, 2018
5.73
June 30, 2019
5.92
Changes of assumptions
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
June 30, 2019
5.92
Differences between projected and actual investment
earnings on pension plan investments
June 30, 2015
5.00
5.00
June 30, 2016
5.00
5.00
June 30, 2017
5.00
5.00
June 30, 2018
5.00
5.00
June 30, 2019
5.00
5.00
Additional Information
Collective balances at June 30, 2019 and 2018 are as follows:
6/30/2019
6/30/2018
Collective deferred outflows of resources $ 1,198,936,924
$ 1,988,215,695
Collective deferred inflows of resources
$ 4,874,748,912
$ 4,286,994,294
Collective net pension liability
$ 14,170,193,618
$ 15,369,699,278
Borough’s Proportion
.0118812732%
.0121927403%
32
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
Actuarial assumptions – The total pension liability for the June 30, 2019 measurement date was determined by an
actuarial valuation as of July 1, 2018, which was rolled forward to June 30, 2019. This actuarial valuation used the
following actuarial assumptions:
Inflation rate:
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 – 15.25%
based on years of service
Investment Rate of Return: 7.00%
Additional Information
Pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table with a 105.6% adjustment
for males and a 102.5% adjustment for females, and with future improvement from base year of 2010 on a generational
basis. Post-retirement mortality rates were based on the Pub-2010 Safety Retiree Below-Median Income Weighted
mortality table with a 96.7% adjustment for males and a 96.0% adjustment for females, and with future improvement
from the base year of 2010 on a generational basis. For beneficiaries (contingent annuitants), the Pub-2010 General
Retiree Below-Median Income Weighted mortality table was used, unadjusted, and with future improvement from base
year of 2010 on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled Retiree mortality table
with a 152.0% adjustment for males and 109.3% adjustment for females, and with improvement from the base year of
2010 on a generational basis. Mortality improvement is based on Scale MP-2019.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial experience study
for the period July 1, 2013 to June 30, 2018.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2019) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method 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, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
Actuarial assumptions – The total pension liability for the June 30, 2019 measurement date was determined by an
actuarial valuation as of July 1, 2018, which was rolled forward to June 30, 2019. This actuarial valuation used the
following actuarial assumptions:
Inflation rate:
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 – 15.25%
based on years of service
Investment Rate of Return: 7.00%
Additional Information
Pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table with a 105.6% adjustment
for males and a 102.5% adjustment for females, and with future improvement from base year of 2010 on a generational
basis. Post-retirement mortality rates were based on the Pub-2010 Safety Retiree Below-Median Income Weighted
mortality table with a 96.7% adjustment for males and a 96.0% adjustment for females, and with future improvement
from the base year of 2010 on a generational basis. For beneficiaries (contingent annuitants), the Pub-2010 General
Retiree Below-Median Income Weighted mortality table was used, unadjusted, and with future improvement from base
year of 2010 on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled Retiree mortality table
with a 152.0% adjustment for males and 109.3% adjustment for females, and with improvement from the base year of
2010 on a generational basis. Mortality improvement is based on Scale MP-2019.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial experience study
for the period July 1, 2013 to June 30, 2018.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2019) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method 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.
34
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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, 2019 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
Discount rate. The discount rate used to measure the State's total pension liability was 6.85% as of June 30, 2019. 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 3.50% as of June 30, 2019, 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 based on 70% of the actuarially determined contributions for local employers. That state employer contributed
50% of the actuarially determined contributions and the local employers contributed 100% of their actuarially
determined contributions for the State employer and 100% of actuarially determined contributions for local employers.
Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future
benefit payments of current plan members through 2076. Therefore, the long-term expected rate of return on plan
investments was applied to projected benefit payments through 2076, and the municipal bond rate was applied to
projected benefit payments after that date in determining the total pension liability.
Sensitivity of the 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,
2019, calculated using the discount rate of 6.85%, 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 (5.85%) or 1 percentage
point higher (7.85%) that the current rate:
35
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen’s Retirement System (PFRS) (Continued)
Current
1% Decrease
Discount Rate
1% Increase
(5.85% )
(6.85%)
(7.85% )
Borough's proportionate share of the
net pension liability
1,965,290
$
1,454,009
$
1,030,850
$
State's proportionate share of the
net pension liability associated with the
Borough
268,534
229,591
197,384
2,233,825
$
1,683,600
$
1,228,234
$
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 Authority, 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. For additional information about PERS, please refer to
Division’s
Comprehensive
Annual
Financial
Report
(CAFR),
which
can
be
found
at
http://www.nj.gov/treasury/pensions/financial-reports.shtml.
Vesting and Benefit Provisions – The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides
retirement, death and disability benefits. All benefits vest after ten years of service, except 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 tiers 1 and 2 members before reaching age 60, tiers 3 and
4 with 25 or more years of service credit before age 62, and tier 5 with 30 or more years of service credit before age 65.
Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member
can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an
unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to
members who have at least 10 years of service credit and have not reached the service retirement age for their respective
tier.
36
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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. The member
contribution rate was 7.50% in State fiscal year 2019. Employers’ contribution amounts are based on an actuarially
determined rate. The Authority’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, 2019 was 14.50% 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, 2019, the Borough’s contractually required contribution to
the pension plan for the fiscal year ended December 31 2019 was $59,629 and is payable by April 1, 2020. Based on the
PERS measurement date of June 30, 2018, the Borough’s contractually required contribution to the pension plan for the
year ended December 31, 2018 was $55,277, which was paid by April 1, 2019. Employee contributions to the pension
plan during the year ended December 31, 2019 were $31,952.
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
2019
6,908
$
45,856
$
2,513
$
374
$
400
$
56,051
$
2018
7,854
48,907
2,908
1,143
-
60,812
2017
8,896
45,274
2,704
-
278
57,152
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, 2019, the Borough’s proportionate share of the PERS net pension liability was $1,104,573 The net
pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of July 1, 2018. 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, 2019, the Borough’s proportionate share of the PERS pension expense, calculated by
the plan as of the June 30, 2019 measurement date is $14,841. This expense is not recognized by the Borough because of
the regulatory basis of accounting as described in note 1.
37
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
At December 31, 2019, the Borough proportionate share of the PERS net pension liability was $1,104,573 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
19,826
$
4,880
$
Changes of assumptions
110,296
383,394
Net Difference between projected and actual earnings
on pension plan investments
17,436
Changes in proportion
108,731
167,413
Borough contributions subsequent to the measurement
date
59,629
Total
298,482
$
573,123
$
$59,629 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the year
ending December 31, 2020. 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
2020
(68,697)
$
2021
(38,085)
2022
(114,511)
2023
(97,938)
2024
(15,039)
Total
(334,270)
$
38
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between expected and actual experience
Year of Pension Plan Deferral:
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
-
5.63
June 30, 2019
5.21
Changes of assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
June 30, 2019
-
5.21
Differences between projected and actual earnings
on pension plan investments
Year of Pension Plan Deferral:
June 30, 2015
5.00
5.00
June 30, 2016
5.00
5.00
June 30, 2017
5.00
5.00
June 30, 2018
5.00
5.00
June 30, 2019
5.00
5.00
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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:
Additional Information
Collective balances at June 30, 2019 and 2018 are as follows:
6/30/2019
6/30/2018
Collective deferred outflows of resources $ 3,149,522,616
$ 4,684,852,302
Collective deferred inflows of resources
$ 7,645,087,574
$ 7,646,736,226
Collective net pension liability
$ 18,143,832,135
$ 19,689,501,539
Borough’s Proportion
.0061302217%
.005557819%
Actuarial assumptions – The total pension liability for the June 30, 2019 measurement date was determined by an
actuarial valuation as of July 1, 2018, which was rolled forward to June 30, 2019.
39
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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:
Price
2.75%
Wage
3.25%
Salary Increases:
Through 2026: 2.00 – 6.00% based on years of service
Thereafter: 3.00 – 7.00% based on years of service
Investment Rate of Return: 7.00%
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee mortality table
with an 82.2% adjustment for males and 101.4% adjustment for females, and with future improvement from the base
year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010 General Below-Median
Income Healthy Retiree mortality table with a 91.4% adjustment for males and 99.7% adjustment for females, and with
future improvement from the base year of 2010 on a generational basis. Disability retirement rates used to value
disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for
males and 117.2% adjustment for females, and with future improvement from the base year of 2010 on a generational
basis. Mortality improvement is based on Scale MP-2019.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an actuarial experience study
for the period July 1, 2014 to June 30, 2018.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2019) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long term
expected rate of return was determined using a building block method in which best-estimate ranges of expected future
real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in PERS’s target asset allocation as of
June 30, 2019 are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected
Real Rate of Return
Risk Mitigation Strategies
03.00%
04.67%
Cash Equivalents
05.00%
02.00%
U.S. Treasuries
05.00%
02.68%
Investment Grade Credit
10.00%
04.25%
High Yield
02.00%
05.37%
Private Credit
06.00%
07.92%
Real Assets
02.50%
09.31%
Real Estate
07.50%
08.33%
US Equity
28.00%
08.26%
Non-U.S. Developed Markets Equity
Emerging Markets Equity
Private Equity
12.50%
06.50%
12.00%
09.00%
11.37%
10.85%
Total
100.00%
40
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 8. PENSION PLANS (CONTINUED)
Public Employees' Retirement System (PERS) (Continued)
Discount rate. The discount rate used to measure the State's total pension liability was 6.28% as of June 30, 2019. 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 3.50% as of June 30, 2019, 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 70% of the
actuarially determined contributions for the State employer and 100% of actuarially determined contributions for the
local employers. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make
projected future benefit payments of current plan members through 2057. Therefore, the long-term expected rate of
return on plan investments was applied to projected benefit payments through 2057, and the municipal bond rate was
applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the 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, 2019,
calculated using the discount rate of 6.28%, 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 (5.28%) or 1 percentage point higher
(7.28%) that the current rate:
Current
1% Decrease
Discount Rate
1% Increase
(5.28% )
(6.28% )
(7.28% )
Borough's proportionate share of the
net pension liability
1,395,255
$
1,104,573
$
859,632
$
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, 2019, 2018 and 2017.
Related Party Investments – The Division of Pensions and Benefits does not invest in securities issued by the Borough.
41
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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.
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,
2019 and 2018 were $114,216 and $191,203 respectively, which equaled the required benefit contribution for each year.
There were ten retired participants eligible at December 31, 2019 and 2018.
42
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate share of the
collective net OPEB liability, collective deferred outflows of resources, collective deferred inflows of resources, and
collective OPEB 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, 2019 and June 30, 2018 were $3,391,665 and $4,084,444, 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, 2018 through June 30, 2019.
Components of net OPEB liability
The components of the collective net OPEB liability of the participating employers in the SHBP as of December 31,
2019 and 2018 were as follows:
2019
2018
Total OPEB liability
3,460,062
$
4,166,433
$
Plan fiduciary net position
68,397
81,989
Net OPEB liability
3,391,665
$
4,084,444
$
Plan fiduciary net position as a percentage of the
total OPEB liability
1.98%
1.97%
Actuarial assumptions and other imputes - The total OPEB liability as of the June 30, 2019 was determined by an
actuarial valuation as of June 30, 2018, which was rolled forward to June 30, 2019. 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*
Rate through 2026
2.00% to 6.00%
Rate thereafter
3.00% to 7.00%
Mortality:
PERS
Pub-2010 General classification headcount weighted mortality with fully
generational mortality improvement projections from the central year
using Scale MP-2019.
PFRS
Pub-2010 Safety classification headcount weighted mortality with fully
generational mortality improvement projections from the central year
using Scale MP-2019.
43
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
Health Care Trend Assumptions - For pre-Medicare medical benefits, the trend rate is initially 5.7% and decreases to a
4.5% long-term trend rate after eight years. For post-65 medical benefits, the actually fully-insured Medicare Advantage
trend rates for fiscal year 2020 are reflected. The assumed post-65 medical trand is 4.5% for all future years. For
prescription drug benefits, the initial trend rate is 7.5% and decreases to a 4.5% long-term trend rate after eight years.
Discount Rate - The discount rate for June 30, 2019 was 3.50%. 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.
Sensitivity of the Net OPEB liability to changes in the discount rate - The following presents the net OPEB liability to
the Municipality as of December 31, 2019, calculated using a discount rate as disclosed above as well as what the net
OPEB liability to the Municipality would be if it was calculated using a discount rate that is 1-percentage point lower or
1-percentage point higher than the current discount rate:
Current
1% Decrease
Discount Rate
1% Increase
December 31, 2019
(2.50% )
(3.50% )
(4.50% )
Proportionate Share Attributable
to the Municipality
3,921,628
$
3,391,665
$
29,610
$
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, 2019, calculated using the healthcare trend rate as disclosed above 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, 2019
1% Decrease
trend rate
1% Increase
Proportionate Share Attributable
to the Municipality
2,862,147
$
3,391,665
$
4,067,154
$
44
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED)
At December 31, 2019 and 2018, the Municipality reported deferred outflows of resources and referred inflows of
resources related to OPEB from the following sources:
2019
2018
Deferred
Deferred
Deferred
Deferred
Outflows
Inflows
Outflows
Inflows
Net differences between projected
and actual investment earnings
on OPEB plan investments
2,794
$
-
$
2,158
$
-
$
Changes in proportion
Differences between expected and
actual experience
991,855
829,288
Changes of assumptions
1,201,931
1,036,073
Changes in proportion
550,310
408,412
Total
2,794
$
2,744,096
$
2,158
$
2,273,773
$
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:
2020
(446,470)
$
2021
(446,470)
2022
(446,745)
2023
(447,186)
2024
(447,592)
Thereafter
(506,839)
Total
(2,741,302)
$
45
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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, 2019 and 2018 are as follows:
2019
2018
Service cost
166,897
$
233,657
$
Interest on total OPEB liability
159,262
199,204
Expected investment return
(2,826)
(2,448)
Administrative expense
2,373
2,138
Change of benefit terms
(477)
Current period recognition (amortization) of deferred
inflows/outflows of resources
(155,087)
(116,147)
Changes of assumptions
(202,652)
(158,036)
Differences between projected and actual
investment earnings on OPEB plan investments
898
597
Total Allocable Plan OPEB expense
(31,612)
158,965
Net amortization of deferred amounts from
changes in proportion
(93,762)
(64,488)
Total OPEB expense
(125,374)
$
94,477
$
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, 2019, accrued benefits for compensated absences are valued at $32,695.
The Borough has established a Compensated Absences Trust Fund to set aside funds for the future payments of
compensated absences. At December 31, 2019 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.
46
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 11. DEFERRED COMPENSATION SALARY ACCOUNT
Amounts deferred under Section 457 plans must be held in trust for the exclusive benefit of participating employees and
not be accessible by the Borough or its creditors. Since the Borough does not have a fiduciary relationship with the Plan,
the balances and activities of the Plan are not reported in the Borough’s financial statements.
NOTE 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
2019
310
$
1,893
$
147
$
18,257
$
2018
201
1,872
48
16,201
2017
189
1,864
48
14,176
NOTE 14. CAPITAL DEBT
Summary of Municipal Debt
Year 2019
Year 2018
Year 2017
Issued:
General Bonds and Notes
1,860,000
$
1,995,000
$
1,959,422
$
Loans
Total Issued
1,860,000
1,995,000
1,959,422
Authorized But Not Issued:
General Bonds and Notes
516,448
146,423
146,423
Net Debt
2,376,448
$
2,141,423
$
2,105,845
$
47
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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 .842%.
Gross Debt
Deductions
Net Debt
Local School District Debt
-
$
-
$
-
$
General Debt
2,376,448
2,376,448
Total
2,376,448
$
-
$
2,376,448
$
Net Debt, $2,376,448, divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2, as amended, $282,166,771 equals
.842%.
Equalized Valuation Basis:
2017
279,973,855
$
2018
278,814,994
2019
287,711,463
Average
282,166,771
$
Borrowing Power Under N.J.S.A. 40A:2-6
3 1/2% of Equalized Valuation Basis (Municipal)
9,875,837
$
Net Debt
2,376,448
Remaining Borrowing Power
7,499,389
$
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, 2019 consisted of the following issues:
Purpose
Date of Maturity
Interest Rate
Amount
General Obligation Bonds of 2018
08/01/2030
4.00-5.00%
$ 1,860,000
Total
$ 1,860,000
48
Borough of Riverton
Notes to Financial Statements
December 31, 2019
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
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
160,000
62,550
222,550
2025-2029
925,000
183,500
1,108,500
2030
205,000
10,250
215,250
Total
$ 1,860,000
$ 579,750
$ 2,439,750
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 fourth and fifth
anniversary date of the original issuance.
As of December 31, 2019, the Borough had no outstanding bond anticipation notes.
NOTE 15. OPERATING LEASES
At December 31, 2019 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, 2019 were $12,000.
Future minimum rental payments under operating lease agreements are as follows:
Year
Total
2020
12,000
$
2021
12,000
Total
24,000
$
49
Borough of Riverton
Notes to Financial Statements
December 31, 2019
NOTE 16. 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:
2019
2018
Balance of Tax
2,750,445
$
2,696,514
$
Deferred
848,766
848,766
School Tax Payable
1,901,679
$
1,847,748
$
Local District School Tax
Balance December 31,
NOTE 17. 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 18. SUBSEQUENT EVENTS
Subsequent to December 31, 2019, the Borough of Riverton authorized additional Bonds and Notes as follows:
Purpose
Date
Amount
Various Capital
Improvements
5/19/2020
$ 425,524
50
SUPPLEMENTAL EXHIBITS
CURRENT FUND
EXHIBIT A-4
BOROUGH OF RIVERTON
Current Fund
Statement of Cash - Collector/Treasurer
For the Year Ended December 31, 2019
FEDERAL AND STATE
CURRENT FUND
GRANT FUND
Balance December 31, 2018
3,040,739.90
$
1,089.43
$
Receipts:
Taxes Receivable
8,571,738.17
$
-
$
Sewer Rent Receivable
497,983.92
Revenue Accounts Receivable
477,499.41
Due from State of New Jersey - Senior Citizens
and Veterans Deductions
24,000.00
Prepaid 2019 Taxes
67,976.88
Tax Overpayments
11,698.97
Sewer Overpayments
4,201.10
Prepaid Sewer Rents
2,801.78
Federal and State Grants Receivable
18,999.96
Due to State of NJ - Construction Code Fees
2,180.31
Miscellaneous Revenue Not Anticipated
24,080.03
Contra
44,407.72
Total Receipts
9,728,568.29
18,999.96
Total Funds Available
12,769,308.19
20,089.39
Disbursements:
2019 Appropriations
2,786,761.77
2018 Appropriation Reserves and Accounts
Payable
201,119.46
Due to State of NJ - Construction Code Fees
2,464.46
County Taxes Payable
1,112,806.74
Local District School Tax
5,446,957.46
Tax Overpayments
1,827.35
Due to Trust Fund
Contra
44,407.72
Reserve for Federal and State Grant Funds -
Appropriated
11,700.10
Total Disbursements
9,596,344.96
11,700.10
Balance December 31, 2019
3,172,963.23
$
8,389.29
$
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, 2019
State Share of
Senior Citizen
Balance
and Veterans
Balance
December 31,
Added
Collections by Cash
Deductions
Over Payments
December 31,
Year
2018
Taxes
2019 Levy
2018
2019
Allowed
Applied
Canceled
2019
2014
1,325.85
$
-
$
-
$
-
$
1,325.85
$
-
$
-
$
-
$
-
$
2015
1,133.96
202.97
930.99
2018
135,443.82
500.00
124,693.88
11,249.94
137,903.63
500.00
126,222.70
12,180.93
2019
8,690,155.17
55,041.00
8,445,515.47
24,250.00
12,872.61
4,573.66
147,902.43
Total
137,903.63
$
500.00
$
8,690,155.17
$
55,041.00
$
8,571,738.17
$
24,250.00
$
12,872.61
$
4,573.66
$
160,083.36
$
Tax Yield:
General Purpose Tax
8,653,012.85
$
Added Taxes
12,892.32
Senior Citizens and Veterans Deductions Allowed
Per Original Levy
24,250.00
Total
8,690,155.17
$
Tax Levy:
Local District School Tax (Abstract)
5,500,888.00
$
County Taxes:
Regular Tax (Abstract)
939,712.78
$
Library Tax (Abstract)
87,819.18
Open Space Preservation Tax (Abstract)
83,747.45
Amount Due County for Added Taxes
(54:4-63.1 et. Seq.)
1,655.55
1,112,934.96
Local Tax for Municipal Purposes
2,064,460.94
Additional Tax Levies
11,871.27
2,076,332.21
Total
8,690,155.17
$
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, 2019
Balance
Balance
December 31,
Accrued
December 31,
2018
in 2019
Collected
2019
Remarks
Borough Clerk:
Registrar of Vital Statistics - Licenses
-
$
1,325.00
$
1,325.00
$
-
$
Fees and Permits
1,700.00
1,700.00
Cell Tower Fees
31,121.70
31,121.70
Park Fees
3,640.00
3,640.00
Municipal Court - Fines and Costs
5,147.44
75,538.62
77,329.17
3,356.89
Rec'd Jan 2020
Interest and Costs on Taxes
36,741.07
36,741.07
Fire Official - Uniform Fire Safety -
Fees and Permits
6,439.95
6,439.95
Construction Code Fees
32,794.69
32,794.69
Interest on Investments and
Bank Deposits
20,787.24
20,787.24
Energy Receipts Tax
230,577.00
230,577.00
Payments in Lieu of Taxes
19,910.48
19,910.48
Cable TV Franchise Fees
9,458.83
9,458.83
Reserve for Debt Service
5,674.28
5,674.28
Total
5,147.44
$
475,708.86
$
477,499.41
$
3,356.89
$
55
EXHIBIT A-7
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Recievable
For the Year Ended December 31, 2019
Balance December 31, 2018
30,492.32
$
Increased by:
Sewer Rents Billed in 2019
498,582.90
Total
529,075.22
Decreased by:
Collections
497,983.92
$
Overpayments Applied
4,545.24
502,529.16
Balance December 31, 2019
26,546.06
$
56
EXHIBIT A-8
BOROUGH OF RIVERTON
Current Fund
Schedule of Due (To)/From State of New Jersey-
Senior Citizen and Veterans' Deductions
For the Year Ended December 31, 2019
Balance December 31, 2018
(500.00)
$
Increased by:
Accrued in 2019:
Senior Citizens Deductions Per Billings
3,500.00
$
Veterans Deductions Per Billings
20,750.00
24,250.00
Add - Current Year Senior Citizen and Veteran Allowed by Collector
Less - Prior Year Disallowed
(500.00)
23,750.00
23,250.00
Decreased by:
Cash Received
24,000.00
Balance December 31, 2019 (Due to)
(750.00)
$
57
EXHIBIT A-9
BOROUGH OF RIVERTON
CURRENT FUND
Statement of 2019 Appropriation Reserves and Reserve for Encumbrances
For The Year Ended December 31, 2019
Balance December 31, 2018
Balance
After
Paid or
Balance
Encumbered
Reserved
Transfers
Charged
Lapsed
Salaries and Wages:
Borough Clerk
-
$
2,404.90
$
2,404.90
$
2,404.80
$
0.10
$
Financial Administration
2,081.05
2,081.05
2,081.03
0.02
Collection of Taxes
1,020.65
2,036.65
1,019.69
1,016.96
Assessment of Taxes
431.15
431.15
430.91
0.24
Planning Board
539.89
540.13
539.89
0.24
Police
41,147.28
41,147.28
18,622.85
22,524.43
Fire Official
208.50
208.50
208.10
0.40
Road Repair and Maintenance
8,129.19
8,129.19
7,176.80
952.39
Registrar of Vital Statistics
184.65
184.75
184.65
0.10
Sewerage
3,652.49
4,671.19
3,652.49
1,018.70
Public Defender
-
-
-
Construction Code Office
1,140.24
1,249.68
1,140.24
109.44
Other Expenses:
Mayor and Council
165.85
885.58
1,051.43
130.40
921.03
Borough Clerk
396.76
5,830.03
6,226.79
3,636.48
2,590.31
Financial Administration
416.47
416.47
300.50
115.97
Computerizing Data Processing
826.00
826.00
-
826.00
Collection of Taxes
1,640.46
1,640.46
284.00
1,356.46
Assessment of Taxes
293.10
434.45
727.55
-
727.55
Legal Services and Costs
1,601.17
2,801.17
2,523.38
277.79
Engineer
653.75
653.75
-
653.75
Economic Development
673.13
673.13
134.61
538.52
Planning Board
1,304.65
2,049.65
1,686.61
363.04
Liability Insurance
-
-
-
-
Worker Compensation
446.00
446.00
-
446.00
Employees Group Insurance
10,544.34
9,544.34
-
9,544.34
Police
980.56
7,934.76
8,915.32
869.24
8,046.08
Office of Emergency Management
750.00
750.00
-
750.00
Fire
3,546.22
2,418.55
5,964.77
4,912.09
1,052.68
Fire Official
0.72
99.20
99.92
-
99.92
Road Repair and Maintenance
6,976.65
2,029.58
3,285.75
2,777.02
508.73
Shade Tree Commission
836.00
-
836.00
836.00
-
Solid Waste Collection
6,622.51
3,441.55
10,064.06
10,006.00
58.06
Public Buildings and Grounds
754.70
1,187.69
4,942.39
4,823.19
119.20
Vehicle Maintenance
5,032.78
82.44
6,633.22
6,341.41
291.81
Registrar of Vital Statistics
150.00
150.00
-
150.00
Animal Control
1,420.00
432.00
852.00
230.00
622.00
Recreation
3,145.04
299.21
3,444.25
3,141.20
303.05
Celebration of Public Events
600.00
600.00
600.00
Electricity
6,161.02
6,453.02
6,160.70
292.32
Street Lighting
4,386.52
4,386.52
4,191.81
194.71
Telephone
2,775.52
457.65
3,233.17
2,775.52
457.65
Water
541.48
541.48
314.59
226.89
Fire Hydrant Service
3,833.69
3,833.69
2,954.28
879.41
Sewerage Processing
3,048.20
5,166.19
8,214.39
7,224.64
989.75
Gasoline
590.08
4,090.08
3,581.03
509.05
Landfill and Solid Waste Disposal Costs
8,883.07
2,343.78
6,547.85
6,547.55
0.30
Municipal Court
96,172.25
96,172.25
89,512.59
6,659.66
Construction Code Office
850.00
850.00
850.00
Social Security System
5,894.72
5,894.72
2,320.53
3,574.19
Police & Fireman's Retirement System
4.91
4.91
4.91
Public Employees' Retirement System
9.50
9.50
9.50
Matching Funds for Grants
6,500.00
6,500.00
6,500.00
Total
44,877.68
$
238,532.79
$
283,410.47
$
212,176.82
$
71,233.65
$
Cash Disbursed
201,119.46
$
Due to Capital
11,057.36
212,176.82
$
58
EXHIBIT A-10
BOROUGH OF RIVERTON
Current Fund
Schedule of Tax Overpayments
For the Year Ended December 31, 2019
Balance December 31, 2018
26,710.77
$
Increased by:
Collected
11,698.97
$
Prior Year Overpayments Created
3,263.81
14,962.78
Subtotal
41,673.55
Decreased by:
Cash Disbursed
1,827.35
Overpayment Applied to 2019 Taxes
12,872.61
14,699.96
Balance December 31, 2019
26,973.59
$
EXHIBIT A-11
Schedule of Prepaid Taxes
For the Year Ended December 31, 2019
Balance December 31, 2018
55,041.00
$
Increased by:
Collected
67,976.88
Subtotal
123,017.88
Decreased by:
Applied to 2019 Taxes
55,041.00
Balance December 31, 2019
67,976.88
$
59
Exhibit A-12
BOROUGH OF RIVERTON
Current Fund
Schedule of Sewer Rent Overpayments
For the Year Ended December 31, 2019
Balance December 31, 2018
1,897.24
$
Increased by:
Collected
4,201.10
6,098.34
Decreased by:
Applied to 2019 Sewer Rents
4,545.24
Balance December 31, 2019
1,553.10
$
Exhibit A-13
Schedule of Due to State of NJ - UCC Fees
For the Year Ended December 31, 2019
Balance December 31, 2018
579.43
$
Increased by:
State Portion of UCC Fees
2,180.31
2,759.74
Decreased by:
Disbursements
2,464.46
Balance December 31, 2019
295.28
$
60
EXHIBIT A-14
BOROUGH OF RIVERTON
Current Fund
Schedule of County Taxes Payable
For the Year Ended December 31, 2019
Balance December 31, 2018
1,527.33
$
Increased by:
2019 Levy:
General County
939,712.78
$
County Library
87,819.18
County Open Space
83,747.45
Added and Omitted Taxes
1,655.55
1,112,934.96
Subtotal
1,114,462.29
Decreased by:
Payments
1,112,806.74
Balance December 31, 2019
1,655.55
$
61
EXHIBIT A-15
BOROUGH OF RIVERTON
Current Fund
Schedule of Local District School Tax Payable
For the Year Ended December 31, 2019
Balance December 31, 2018:
School Tax Payable
1,847,748.41
$
School Tax Deferred
848,766.00
2,696,514.41
$
Increased by:
Levy - School Year July 1, 2019 to June 30, 2020
5,500,888.00
Total
8,197,402.41
Decreased by:
Payments
5,446,957.46
Balance December 31, 2019:
School Tax Payable
1,901,678.95
School Tax Deferred
848,766.00
2,750,444.95
$
2019 Liability for Local District School Tax:
Tax Paid
5,446,957.46
$
Tax Payable December 31, 2019
1,901,678.95
Total
7,348,636.41
Less:
Tax Payable December 31, 2018
1,847,748.41
Amount Charged to 2019 Operations
5,500,888.00
$
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, 2019
Transferred
Balance
From
Transferred
Balance
December 31,
Unappropriated
To
December 31,
2018
Accrued
Received
Reserves
Unappropriated
Canceled
2019
State Grants:
Clean Communities Grant
-
$
6,807.99
$
6,807.09
$
-
$
-
$
0.90
$
-
$
Alcohol Education Rehab
241.12
241.12
Recycling Tonnage Grant
3,749.49
7,408.80
3,659.31
Body Armor Grant
1,045.99
1,045.99
Drunk Driving Enforcement Grant
3,095.58
3,095.58
Burlington County Park Grant
55,000.00
55,000.00
Green Communities
3,000.00
3,000.00
Total State Grants
55,000.00
14,844.59
18,598.58
6,754.89
0.90
58,000.00
Federal Grants:
NJ Transportation Trust Fund
9,248.00
9,248.00
Bullet Proof Vest
438.90
401.38
438.90
401.38
Total Federal Grants
9,248.00
438.90
401.38
438.90
401.38
9,248.00
Total Federal and State Grants
64,248.00
$
15,283.49
$
18,999.96
$
438.90
$
7,156.27
$
0.90
$
67,248.00
$
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, 2019
Transfer From
Balance
Federal and
Realized
Balance
December 31,
State Grant
as Revenue
December 31,
2018
Receivable
2019
2019
Federal Grants:
Bullet Proof Vest
438.90
$
401.38
$
438.90
$
401.38
$
Total Federal Grants
438.90
401.38
438.90
401.38
State Grants:
Drunk Driving Enforcement Grant
3,095.58
3,095.58
Recycling Tonnage Grant
3,659.31
3,659.31
Total State Grants
-
6,754.89
-
6,754.89
Total Federal and State Grants
438.90
$
7,156.27
$
438.90
$
7,156.27
$
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, 2019
Transferred
Transferred
Balance
from
from
Balance
December 31,
2019 Budget
2019 Budget
Prior Year
December 31,
2018
Appropriation
40A:4-87
Encumbrance
Expended
Canceled
2019
State Grants:
Clean Communities Grant
4,734.72
$
-
$
6,807.99
$
-
$
6,234.38
$
0.90
$
5,307.43
$
Recycling Tonnage Grant
1,382.93
3,749.49
2,698.77
2,433.65
Drunk Driving Enforcement Fund
5,325.59
1,782.00
3,543.59
Community Steward Incentive
325.00
325.00
Alcohol Education Rehabilitation
3,817.23
241.12
52.96
4,005.39
Green Communities
2,495.00
3,000.00
1,610.00
3,885.00
Body Armor Grant
6,203.05
1,045.99
401.37
6,847.67
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
37,155.54
17,844.46
Total State Grants
84,249.24
-
14,844.59
-
49,935.02
0.90
49,157.91
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
401.38
476.42
Total Federal Grants
18,713.84
438.90
-
-
401.38
-
18,751.36
Total Federal and State Grants
102,963.08
$
438.90
$
14,844.59
$
-
$
50,336.40
$
0.90
$
67,909.27
$
Cash Disbursed
11,700.10
$
Due to General Capital Fund
37,155.54
Encumbrances Payable
1,480.76
Total
50,336.40
$
65
TRUST FUND
EXHIBIT B-1
BOROUGH OF RIVERTON
Trust Fund
Schedule of Cash - Treasurer
For the Year Ended December 31, 2019
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, 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
$
Receipts:
Dog License Fees:
Municipal Licenses
290.00
State Registration Fees
84.40
Late Fees
4.20
Marriage Licenses Issued
175.00
175.00
Employee Contributions
2,892.57
999.96
1,892.61
Premiums
67,200.00
67,200.00
Redemption
625.67
625.67
Escrow
13,001.00
8,940.00
4,061.00
Shade Tree
870.00
870.00
Police Outside Service
52,933.25
52,933.25
Dog Park
705.50
705.50
Forfeited Property
9,938.92
9,938.92
Parking Offenses Adjudication Act
10.00
10.00
Public Defender Fees
17,330.47
17,330.47
Uniform Fire Safety
2,000.00
2,000.00
Veteran Affairs
100.00
100.00
Payroll Deductions Payable
366,942.37
366,942.37
Net Payroll
710,580.53
710,580.53
Due to Current
15,075.19
42,558.99
907.83
41,651.16
Interest Earned
15.92
1,624.10
3.62
5.52
309.65
445.94
132.84
41.00
7.20
16.34
25.54
430.02
206.43
Total Receipts
15,469.71
1,289,488.37
178.62
1,005.48
2,202.26
67,528.19
67,332.84
9,979.92
41,668.36
17,346.81
4,086.54
430.02
1,077,729.33
Disbursements:
Expenditures Under RS4:19-15.11
-
State Registration Fees
67.80
Employee Claims
786.94
737.44
49.50
Redemption
625.67
625.67
Escrow
49,071.79
8,838.18
40,233.61
Shade Tree
4,355.54
4,355.54
Police Outside Service
34,612.50
34,612.50
Dog Park
705.50
705.50
Forfeited Property
5,028.08
5,028.08
Public Defender Fees
15,735.97
15,735.97
Payroll Deductions Payable
375,662.88
375,662.88
Net Payroll
710,580.53
710,580.53
Due to State of NJ
125.00
125.00
Due to Current Fund
15,075.19
43,208.46
3.00
1,345.91
41,651.16
208.39
Total Disbursements
15,142.99
1,240,498.86
128.00
737.44
49.50
50,483.30
-
5,028.08
41,651.16
15,735.97
-
40,233.61
1,086,451.80
Balance December 31, 2019
2,894.45
$
298,115.48
$
139.24
$
1,246.96
$
25,104.51
$
98,301.89
$
74,907.32
$
9,138.88
$
368.68
$
2,613.14
$
8,508.06
$
60,076.89
$
17,709.91
$
67
EXHIBIT B-2
BOROUGH OF RIVERTON
Dog License Fund
Schedule of Reserve for Animal Control Fund Expenditures
For the Year Ended December 31, 2019
Balance December 31, 2018
460.00
$
Increased by:
2019 Dog License Fees Collected
290.00
$
Late Fees
4.20
294.20
Subtotal
754.20
Decreased by:
Expenditures Under RS4:19-15.11
-
Due to Current Fund
358.20
358.20
Balance December 31, 2019
396.00
$
License Fees Collected
Year:
2017
180.00
$
2018
216.00
Total
396.00
$
68
EXHIBIT B-3
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Due to State of New Jersey
For the Year Ended December 31, 2019
Balance December 31, 2018
-
$
Increased by:
Marriage Licenses Issued
175.00
Subtotal
175.00
Decreased by:
Cash Disbursed to State of New Jersey
125.00
Balance December 31, 2019
50.00
$
EXHIBIT B-4
Schedule of Payroll Deductions Payable
For the Year Ended December 31, 2019
Balance December 31, 2018
8,642.66
$
Increased by:
Payroll Deductions Received
1,077,763.15
Total
1,086,405.81
Decreased by:
Payroll Deductions Disbursed
1,086,243.41
Balance December 31, 2019
162.40
$
69
EXHIBIT B-5
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Tax Title Lien Payable
For the Year Ended December 31, 2019
Balance December 31, 2018
-
$
Increased by:
Tax Redemptions
625.67
Subtotal
625.67
Decreased by:
Disbursements
625.67
Balance December 31, 2019
-
$
EXHIBIT B-6
Schedule of Reserve For Payment of Unemployment Claims
For the Year Ended December 31, 2019
Balance December 31, 2018
16,201.40
$
Increased by:
Employee Withholdings
1,892.61
$
Interest Earned
309.65
2,202.26
Subtotal
18,403.66
Decreased by:
Disbursements
147.07
Balance December 31, 2019
18,256.59
$
EXHIBIT B-7
Schedule of Reserve For Flexible Spending Benefits
For the Year Ended December 31, 2019
Balance December 31, 2018
207.57
$
Increased by:
Employee Withholdings
999.96
Subtotal
1,207.53
Decreased by:
Payment of Flexible Spending Benefits
737.44
Balance December 31, 2019
470.09
$
70
EXHIBIT B-8
Balance December 31, 2018
117,951.97
$
Increased by:
Cash Receipts
13,001.00
Subtotal
130,952.97
Decreased by:
Cash Disbursed
49,071.79
Balance December 31, 2019
81,881.18
$
EXHIBIT B-9
Balance December 31, 2018
11,174.48
$
Increased by:
Premiums Collected
67,200.00
$
Interest Earned
132.84
67,332.84
Balance December 31, 2019
78,507.32
$
Schedule of Reserve For Tax Sale Premiums
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Developer's Escrow Deposits
For the Year Ended December 31, 2019
71
EXHIBIT B-10
Balance December 31, 2018
4,249.33
$
Increased by:
Receipts
870.00
Decreased by:
Disbursements
4,355.54
Balance December 31, 2019
763.79
$
EXHIBIT B-11
Balance December 31, 2019 and 2018
5,161.38
$
EXHIBIT B-12
Balance December 31, 2018
975.12
$
Increased by:
Receipts
100.00
Balance December 31, 2019
1,075.12
$
Schedule of Reserve For Veteran Affairs
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Shade Tree Commission
For the Year Ended December 31, 2019
Schedule of Reserve For Environmental Fund
For the Year Ended December 31, 2019
72
EXHIBIT B-13
Balance December 31, 2018
944.59
$
Increased by:
Receipts from Municipal Court
17,330.47
Subtotal
18,275.06
Decreased by:
Disbursements
15,735.97
Balance December 31, 2019
2,539.09
$
EXHIBIT B-14
Balance December 31, 2018
4,187.04
$
Increased by:
Forfeited Property
9,938.92
$
Interest Earned
41.00
9,979.92
Subtotal
14,166.96
Decreased by:
Disbursements
5,028.08
Balance December 31, 2019
9,138.88
$
EXHIBIT B-15
Balance December 31, 2019 and 2018
30,000.00
$
Schedule of Reserve For Compensated Absences
For the Year Ended December 31, 2019
Schedule of Reserve For Public Defender
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Police Forfeited Property
For the Year Ended December 31, 2019
73
EXHIBIT B-16
Balance December 31, 2018
351.48
$
Increased by:
Receipts from Municipal Court
10.00
$
Interest Earned
7.20
17.20
Balance December 31, 2019
368.68
$
EXHIBIT B-17
Balance December 31, 2018
40,368.00
$
Increased by:
Receipts
52,933.25
Subtotal
93,301.25
Decreased by:
Disbursements
34,612.50
Balance December 31, 2019
58,688.75
$
Schedule of Reserve For Off Duty Police
For the Year Ended December 31, 2019
Schedule of Reserve For POAA Funds
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
Trust - Other Funds
74
EXHIBIT B-18
Balance December 31, 2018
-
$
Increased by:
Contributions
705.00
Subtotal
705.00
Decreased by:
Payments
705.00
Balance December 31, 2019
-
$
EXHIBIT B-19
Balance December 31, 2018
871.50
$
Increased by:
Receipts
2,000.00
Subtotal
2,871.50
Decreased by:
Payments made
-
Balance December 31, 2019
2,871.50
$
Schedule of Reserve For Uniform Fire Safety
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
Trust - Other Funds
Schedule of Reserve For Dog Park
For the Year Ended December 31, 2019
75
GENERAL CAPITAL FUND
EXHIBIT C-2
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Cash - Treasurer
For the Year Ended December 31, 2019
Balance December 31, 2018
727,513.98
$
Receipts:
Current Fund Budget Appropriation -
Capital Improvement Fund
59,475.00
$
Grants Receivable
49,000.00
Reserve for Debt Service
144,500.00
Due to Current Fund
3,528.03
256,503.03
Total
984,017.01
Disbursements:
Improvement Authorizations
423,409.57
Budget Appropriation - Reserve for Debt
5,674.28
Due to Current Fund
3,577.91
432,661.76
Balance December 31, 2019
551,355.25
$
77
EXHIBIT C-3
BOROUGH OF RIVERTON
General Capital Fund
Analysis of General Capital Cash and Investments
For the Year Ended December 31, 2019
Fund Balance
18,478.88
$
Capital Improvement Fund
40,256.76
Due from Current Fund
(31,305.91)
Due from Federal and State Grant Fund
(37,155.54)
Due to Current Fund
11,688.23
Due to Federal and State Grant Fund
23,600.00
Reserve for Debt
144,500.00
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
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
(10,500.00)
Road Improvements
47,061.22
Acquisition of Street Signs
10,000.00
Acquisition of Public Works Equipment
187.00
Sewer System-Wide Improvements
1,753.61
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
137,604.98
Acquisition of Emergency Back-up Generator
1,207.26
Acquisition of Fire Equipment
349.71
2018-03
Multi-purpose:
Road Program - Beachwood/Homewood
13,251.98
Acquisition of Police Equipment
1,121.00
Acquisition of Sewer Equipment
107,416.55
Acquisition of Fire Equipment
48.96
2019-05
Multi-purpose:
Heating System at Public Works Garage
(5,125.00)
Police Vehicle and Software
(22,758.00)
Sewer Tank Housing Panel
13,375.00
Acquisition of Fire Equipment
500.00
Total
551,355.25
$
78
EXHIBIT C-4
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Deferred Charges to Future Taxation - Funded
For the Year Ended December 31, 2019
Balance December 31, 2018
1,995,000.00
$
Decreased by:
Serial Bond Principal Payment
135,000.00
Balance December 31, 2019
1,860,000.00
$
79
EXHIBIT C-5
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Deferred Charges to Future Taxation - Unfunded
For the Year Ended December 31, 2019
Analysis of Balance
December 31, 2019
Financed by
Balance
Transferred to
Balance
Bond
Unexpended
Ordinance
December 31,
2019
Paid by
Deferred Taxation
December 31,
Aniticpation
Improvement
Number
Improvement Description
2018
Authorizations
Budget
Funded
2019
Notes
Expenditures
Authorization
2009-5
2009 Road Program
65,636.32
$
-
$
-
$
-
$
65,636.32
$
-
$
-
$
65,636.32
$
2010-4
Various Capital Improvements
57,312.00
57,312.00
57,312.00
2013-5
Various Capital Improvements
23,475.00
23,475.00
23,475.00
2019-05
Various Capital Improvements
370,025.00
370,025.00
82,774.66
287,250.34
146,423.32
$
370,025.00
$
-
$
-
$
516,448.32
$
-
$
82,774.66
$
433,673.66
$
Improvement Authorizations - Unfunded
433,673.66
$
Less - Unexpended Proceeds from Bond Anticipation Notes
NONE
-
Total
433,673.66
$
80
EXHIBIT C-6
BOROUGH OF RIVERTON
General Capital Fund
Statement of Grants Receivable
For the Year Ended December 31, 2019
Balance December 31, 2018
59,500.00
$
Decreased by:
Cash received
49,000.00
$
Canceled
-
49,000.00
Balance December 31, 2019
10,500.00
$
Analysis of Balance
Burlington County Park Development Grant - Memorial Park
10,500.00
$
10,500.00
$
81
EXHIBIT C-7
BOROUGH OF RIVERTON
General Capital Fund
Schedule of General Serial Bonds
For the Year Ended December 31, 2019
Amount
Maturities of
of
Bonds Outstanding
Balance
Balance
Date of
Original
December 31, 2019
Interest
December 31,
December 31,
Purpose
Issue
Bonds
Date
Amount
Rate
2018
Issued
Decreased
2019
General Bonds of 2018
8/23/2018
1,995,000
$
8/1/2020
130,000.00
$
5.00%
1,995,000.00
$
-
$
135,000.00
$
1,860,000.00
$
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
$
-
$
135,000.00
$
1,860,000.00
$
82
EXHIBIT C-8
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Improvement Authorizations
For the Year Ended December 31, 2019
2019 Authorizations
Deferred
Charges
Balance
Capital
To Future
Paid
Balance
Ordinance
Ordinance
December 31, 2018
Improvement
Grant
Taxation
or
December 31, 2019
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
591.17
591.17
b. 2007 Road Program
18,316.79
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
31,281.90
(26,030.10)
57,312.00
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
215.79
1.36
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
4,574.53
4,574.53
f. Acquisition of Fire Truck
450,000.00
1,787.00
1,787.00
Forward
61,130.80
$
120,393.22
$
-
$
-
$
-
$
(26,030.10)
$
-
$
61,130.80
$
146,423.32
$
83
EXHIBIT C-8
BOROUGH OF RIVERTON
General Capital Fund
Schedule of Improvement Authorizations
For the Year Ended December 31, 2019
2019 Authorizations
Deferred
Charges
Balance
Capital
To Future
Prior
Paid
Balance
Ordinance
Ordinance
December 31, 2018
Improvement
Grant
Taxation
Year
or
December 31, 2019
Number
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Receivable
Unfunded
Encumbrances
Charged
Canceled
Funded
Unfunded
Continued
61,130.80
$
120,393.22
$
-
$
-
$
-
$
-
$
(26,030.10)
$
-
$
61,130.80
$
146,423.32
$
2015-2
Multi-purpose:
05/06/15
b. Improvements to Riverton Park
287,500.00
$
2,149.48
2,149.48
c. Road Improvements
366,675.00
63,341.05
17,242.83
46,098.22
d. Acquisition of Street Signs
10,000.00
10,000.00
10,000.00
e. Acquisition of Public Works Equipment
210,500.00
187.00
187.00
f. Sewer System-Wide Improvements
50,000.00
6,397.40
4,643.79
1,753.61
2016-4
Multi-purpose:
06/08/16
b. Acquisition of Computer Hardware
6,000.00
1,099.27
1,099.27
e. Acqusition of Fire Equipment
100,000.00
16,740.00
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
138,213.73
608.75
137,604.98
d. Acqusition of Emergency Back-Up Generator
45,500.00
1,207.26
1,207.26
e. Acqusition of Fire Equipment
12,500.00
349.71
349.71
2018-03
Multi-purpose:
07/17/18
a. Acquisition of Public Works Equipment
20,200.00
5,174.00
5,174.00
b. Road Program - Beachwood/Homewood
2,847,505.00
256,294.35
247,904.12
8,390.23
c. Aqusition of a Police Equipment
10,392.00
1,121.00
1,121.00
d. Acqusition of Sewer Equipment
212,450.00
197,088.08
6,174.02
100,196.32
103,065.78
e. Acqusition of Fire Equipment
15,000.00
48.96
48.96
2019-05
Multi-purpose:
a. Heating System at Public Works Garage
15,000.00
1,000.00
14,000.00
6,125.00
8,875.00
b. Police Vehicle and Software
74,500.00
4,000.00
70,500.00
74,258.00
242.00
c. Sewer Tank Housing Panel
292,000.00
13,975.00
278,025.00
600.00
13,375.00
278,025.00
d. Acqusition of Fire Equipment
8,000.00
500.00
7,500.00
7,891.66
108.34
Total
762,196.58
$
120,393.22
$
19,475.00
$
-
$
370,025.00
$
11,348.02
$
440,763.85
$
-
$
409,000.31
$
433,673.66
$
Encumbrances Payable
65,567.18
$
Due from Current Fund
(11,057.36)
Due from Federal and State Grant Fund
(37,155.54)
Cash Disbursed
423,409.57
Total
440,763.85
$
84
EXHIBIT C-9
BOROUGH OF RIVERTON
General Capital Fund
Statement of Capital Improvement Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
256.76
$
Increased by:
2019 Budget Appropriation
59,475.00
59,731.76
Decreased by:
Appropriated to Finance Improvement Authorization
19,475.00
Balance December 31, 2019
40,256.76
$
85
EXHIBIT C-10
BOROUGH OF RIVERTON
General Capital Fund
Statement of Bonds and Notes Authorized but not Issued
For the Year Ended December 31, 2019
Bond
Balance
Anticipation
Balance
Ordinance
December 31,
2019
Notes
December 31,
Number
Improvement Description
2018
Authorizations
Issued
2019
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
2019-5
Multi-Purpose
370,025.00
370,025.00
Total
146,423.32
$
370,025.00
$
-
$
516,448.32
$
86
PUBLIC ASSISTANCE FUND
EXHIBIT D-1
BOROUGH OF RIVERTON
PUBLIC ASSISTANCE FUND
Schedule of Cash - Treasurer
For the Year Ended December 31, 2019
P.A.T.F.
I
Balance December 31, 2018
737.03
$
Increased by Receipts:
Interest Earned
3.65
Total
740.68
Decreased by Disbursements
Balance December 31, 2019
740.68
$
88
BOROUGH OF RIVERTON
PART II
Schedule of Findings and Recommendations
For the Year Ended December 31, 2019
BOROUGH OF RIVERTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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
90
BOROUGH OF RIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2019
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.
91
BOROUGH OF RIVERTON
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2019
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.
92
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
There were no financial statement findings in the prior year.
FEDERAL AWARDS
A Federal Single Audit was not required.
STATE AWARDS
A State Single Audit was not required.
93
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2019:
Name of
Amount of
Corporate
Name
Title
Bond
Surety
Suzanne Cairns Wells
Mayor
William Corbi
President of Council
Hank DeGeorge
Councilperson
Kirk Fullerton
Councilperson
Laura Major
Councilperson
Kenneth Mills
Councilperson
James Quinn
Councilperson
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 24, 2020
94
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"...gs 91 Schedule of Federal Awards and State Financial Assistance Findings 92 Summary Schedule of Prior Year Audit Findings 93 Officials in Office and Surety Bonds 94 Acknowledgment 94 -b- BOROUGH OF RIVERTON PART I Report of Audit of Financial Statements For the Year Ended December 31, 2019 INVERSO & STEWA..."
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