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Executive Summary
The Borough of Rockaway's audit report for the year ended December 31, 2019, reveals the financial status of various Borough funds. Prepared in accordance with accounting practices prescribed by the Division of Local Government Services, the report includes financial statements for the Current Fund, Trust Funds, General Capital Fund, and Water Utility Operating and Capital Funds, as well as a General Fixed Assets Account Group. The report highlights financial activities and compliance with regulatory and budgetary requirements, along with comments and recommendations for improvement. The audit also ensures compliance with federal and state grant expenditure reporting requirements, although expenditures did not exceed the single audit threshold.
The report contains one notable finding regarding segregation of duties within the Borough's financial operations, particularly concerning the concentration of responsibility for recording and treasury functions within a limited number of personnel due to budgetary constraints. Recommendations include a review of grant receivables to assess collectibility and cancellation of outdated grants, as well as continued monitoring of interfund balances for timely liquidation. A formal recommendation regarding the Police Outside Duty trust account is not deemed necessary, as controls and procedures currently in place are functioning effectively.
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Document Text
--- Document: 2019 Report of Audit Document ---
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2019
NISIVOCCIA LLP
CERTIFIED PUBLIC ACCOUNTANTS
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2019
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2019
PART I – Financial Statements and Supplementary Data
Page
Independent Auditors' Report
1-3
Financial Statements
Current Fund
Schedule
Comparative Balance Sheet – Regulatory Basis
A
Comparative Statement of Operations and Change in Fund Balance – Regulatory Basis
A-1
Statement of Revenue – Regulatory Basis
A-2
Statement of Expenditures – Regulatory Basis
A-3
Trust Funds
Comparative Balance Sheet – Regulatory Basis
B
Statement of Fund Balance - Assessment Trust Fund – Regulatory Basis (Not Applicable)
B-1
Statement of Revenue - Assessment Trust Fund – Regulatory Basis (Not Applicable)
B-2
Statement of Expenditures - Assessment Trust Fund – Regulatory Basis (Not Applicable)
B-3
General Capital Fund
Comparative Balance Sheet– Regulatory Basis
C
Statement of Fund Balance – Regulatory Basis
C-1
Water Utility Fund
Comparative Balance Sheet – Regulatory Basis
D
Comparative Statement of Operations and Changes in Fund Balance – Water Utility
Operating Fund – Regulatory Basis
D-1
Statement of Water Capital Fund Balance – Regulatory Basis
D-1A
Statement of Revenue – Regulatory Basis
D-2
Statement of Expenditures – Regulatory Basis
D-3
Sewer Utility Fund (Not Applicable)
Public Assistance Fund (Not Applicable)
Bond and Interest Fund (Not Applicable)
General Fixed Assets Account Group
Comparative Balance Sheet – Regulatory Basis
H
Page
Notes to Financial Statements
1-29
Supplementary Data
Schedule
Officials in Office and Surety Bonds
1
Current Fund
Schedule of Cash
A-4
Schedule of Cash - Collector
A-5
Schedule of Cash - Grant Funds (Not Applicable)
A-6
Schedule of Taxes Receivable and Analysis of Property Tax Levy
A-7
Schedule of Tax Title Liens
A-8
Schedule of Revenue Accounts Receivable
A-9
Schedule of Sewer Rents Receivable
A-10
Schedule of 2018 Appropriation Reserves
A-11
Schedule of Local School District Taxes Payable
A-12
Schedule of Regional High School District Taxes Payable
A-13
Schedule of Federal and State Grants Receivable
A-14
Schedule of Unappropriated Grant Reserves
A-15
Schedule of Appropriated Grant Reserves
A-16
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
PART I – Financial Statements and Supplementary Data (Cont’d)
Supplementary Data
Schedule
Trust Funds
Schedule of Cash and Investments - Treasurer
B-4
Analysis of Cash - Assessment Trust Fund (Not Applicable)
B-5
Schedule of Reserve for Animal Control Fund Expenditures - Animal Control Fund
B-6
General Capital Fund
Schedule of Cash
C-2
Analysis of Cash
C-3
Schedule of Deferred Charges to Future Taxation - Unfunded
C-4
Schedule of Improvement Authorizations
C-5
Schedule of Capital Improvement Fund
C-6
Schedule of Bond Anticipation Notes Payable
C-7
Schedule of Serial Bonds Payable
C-8
Schedule of Bonds and Notes Authorized But Not Issued
C-9
Water Utility Fund
Schedule of Cash - Treasurer
D-4
Schedule of Cash - Collector
D-4A
Analysis of Cash – Water Utility
D-5
Schedule of Consumer Accounts Receivable
D-6
Schedule of Fixed Capital
D-7
Schedule of Fixed Capital Authorized and Uncompleted
D-8
Schedule of 2018 Appropriation Reserves
D-9
Schedule of Improvement Authorizations
D-10
Schedule of Capital Improvement Fund
D-11
Schedule of Deferred Reserve for Amortization
D-12
Schedule of Reserve for Amortization
D-12A
Schedule of Bond Anticipation Notes Payable
D-13
Schedule of Serial Bonds Payable
D-14
Schedule of Bonds and Notes Authorized But Not Issued
D-15
Sewer Utility Fund (Not Applicable)
Public Assistance Fund (Not Applicable)
PART II – Single Audit
Page
Schedule of Expenditures of Federal Awards
1
Schedule of Expenditures of State Awards
2
Notes to the Schedule of Expenditures of Federal and State Awards
3
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
4-5
Schedule of Findings and Responses
6-7
Summary Schedule of Prior Audit Findings
8
PART III – Comments and Recommendations
Page
Comments and Recommendations
9-13
Summary of Recommendations
14
BOROUGH OF ROCKAWAY
PART I
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
YEAR ENDED DECEMBER 31, 2019
Independent Auditors' Report
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Rockaway, New Jersey
Report on the Financial Statements
We have audited the financial statements – regulatory basis of the various funds of the Borough of Rockaway, in
the County of Morris (the "Borough") as of and for the years ended December 31, 2019 and 2018, and the related
notes to the financial statements, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting practices prescribed or permitted by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey (the “Division”) to demonstrate compliance with the Division's regulatory
basis of accounting, and the budget laws of New Jersey; this includes 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.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits
in accordance with auditing standards generally accepted in the United States of America, audit requirements
prescribed by the Division, and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Borough’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 Borough’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
1
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 2
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1, the financial statements are prepared by the Borough on the basis of accounting practices
prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of
accounting and the budget laws of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States of America. 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 our opinion, because of the significance of the matter discussed in the Basis for the 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 each fund and account group of the Borough as of December 31, 2019 and 2018, or the changes in
financial position or where applicable, cash flows thereof for the years then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of the various funds and account group of the Borough of Rockaway as of December 31, 2019 and 2018, and the
results of operations and changes in fund balance, where applicable, of such funds, thereof for the years then ended
on the basis of the accounting practices prescribed or permitted by the Division to demonstrate compliance with the
Division's regulatory basis of accounting and the budget laws of New Jersey, as described in Note 1.
Other Matters
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements of the various funds that
collectively comprise the Borough’s financial statements. The supplementary data schedules listed in the table of
contents and the schedules of expenditures of federal and state awards, 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’s OMB Circular 15-08, Single Audit Policy for Recipients of
Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis and are not a required
part of the financial statements.
The supplementary data schedules and the schedules of expenditures of federal and state awards 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 various fund financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the various
fund financial statements or to the various fund financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary data schedules and the schedules of expenditures of federal and state awards are fairly stated, in all
material respects, in relation to the financial statements as a whole.
2
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2020 on our
consideration of the Borough of Rockaway’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Borough’s
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 Rockaway’s internal control over
financial reporting and compliance.
Mount Arlington, New Jersey
May 13, 2020
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
3
Kathryn L. Mantell
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
CURRENT FUND
A
1 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
Ref.
2019
2018
ASSETS
Regular Fund:
Cash and Cash Equivalents:
Treasurer
A-4
4,748,756.54
$
4,671,634.17
$
Change Fund
100.00
100.00
4,748,856.54
4,671,734.17
Receivables and Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-7
346,006.67
286,489.46
Sewer Rents Receivable
A-10
67,418.26
64,354.46
Tax Title Liens Receivable
A-8
719,650.31
696,629.26
Property Acquired for Taxes at Assessed Valuation
961,500.00
961,500.00
Revenue Accounts Receivable
A-9
4,237.58
5,260.36
Grants Receivable
A-14
65,415.14
120,658.79
Due from Animal Control Trust Fund
B
555.19
744.99
Total Receivables and Other Assets With Full Reserves
2,164,783.15
2,135,637.32
TOTAL ASSETS
6,913,639.69
$
6,807,371.49
$
A
2 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
December 31,
Ref.
2019
2018
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Appropriation Reserves:
Encumbered
A-3;A-11
279,810.48
$
232,839.11
$
Unencumbered
A-3;A-11
753,263.30
904,430.38
1,033,073.78
1,137,269.49
Accounts Payable - Vendors
4,573.35
21,578.24
Tax Overpayments
1,083.90
Local School Taxes Payable
A-12
265,821.00
County Added and Omitted Taxes Payable
5,565.17
6,837.71
Due to State of New Jersey:
Senior Citizens' and Veterans' Deductions
10,012.10
9,761.65
Marriage License Fees
350.00
225.00
Construction Code Surcharge Fees
662.00
1,093.00
Prepaid Taxes
169,242.77
188,336.55
Due to Other Trust Funds
B
156,000.00
Reserve for Appropriated Grants:
Encumbered
A-16
19,520.00
24,909.00
Unencumbered
A-16
57,378.20
65,766.65
Reserve for Unappropriated Grants
A-15
7,713.92
Reserve for:
Revaluation of Real Property
2,160.00
2,160.00
Master Plan
16,500.00
4,500.00
Sale of Municipal Assets
514,311.00
514,311.00
Pending Tax Appeals
650,000.00
500,000.00
Sewer Improvements
300,323.50
157,322.72
2,783,671.87
3,064,689.83
Reserve for Receivables and Other Assets
A
2,164,783.15
2,135,637.32
Fund Balance
A-1
1,965,184.67
1,607,044.34
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
6,913,639.69
$
6,807,371.49
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
A-1
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE -
REGULATORY BASIS
Year Ended December 31,
Ref.
2019
2018
Revenue and Other Income Realized
Fund Balance Utilized
730,363.00
$
541,500.00
$
Miscellaneous Revenue Anticipated
1,804,257.18
1,921,711.66
Receipts from:
Delinquent Taxes
286,485.87
330,790.58
Current Taxes
23,914,613.94
23,581,503.41
Nonbudget Revenue
465,947.10
238,352.67
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
546,353.89
237,940.39
Interfunds Returned
744.99
41,916.09
Decrease in Grants Receivable
55,243.65
Cancellation of Appropriated Grant Reserves
75.43
50,927.55
Cancellation of Unappropriated Grant Reserves
23,472.35
Total Income
27,804,085.05
26,968,114.70
Expenditures
Budget and Emergency Appropriations:
Municipal Purposes
9,060,967.31
8,528,157.56
Local School District Taxes
8,539,307.00
8,273,487.00
County Taxes
2,147,161.22
2,207,808.94
County Share of Added Taxes
5,565.17
6,837.71
Regional School District Taxes
6,752,960.00
6,722,499.00
Refund of Prior Year Tax Revenue
922.76
Refund of Prior Year Revenue
100.02
2,406.25
Increase in Grants Receivable
61,872.76
Reserve for Tax Appeals
208,043.05
266,506.34
Interfunds Advanced
555.19
744.99
Total Expenditures
26,715,581.72
26,070,320.55
Excess in Revenue/Statutory Excess to Fund Balance
1,088,503.33
897,794.15
Fund Balance
Balance January 1
1,607,044.34
1,250,750.19
2,695,547.67
2,148,544.34
Decreased by:
Utilized as Anticipated Revenue
730,363.00
541,500.00
Balance December 31
A
1,965,184.67
$
1,607,044.34
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
A-2
1 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Fund Balance Anticipated
730,363.00
$
730,363.00
$
Miscellaneous Revenue:
Alcoholic Beverage Licenses
17,050.00
17,050.00
Other Licenses
15,000.00
16,055.00
1,055.00
$
Fees and Permits
65,900.00
56,990.03
8,909.97
*
Municipal Court - Fines and Costs
70,000.00
63,784.83
6,215.17
*
Interest and Costs on Taxes
88,000.00
96,298.51
8,298.51
Consolidated Municipal Property Tax Relief Act
13,649.00
13,649.00
Energy Receipts Tax (P.L. 1998, Chapters 162 & 167)
533,346.00
533,346.00
Uniform Construction Code Fees
80,000.00
95,053.00
15,053.00
Shared Service Agreement:
Morris Hills Regional School Resource Officer
52,500.00
52,500.00
Uniform Fire Safety Fees
15,000.00
32,901.67
17,901.67
Sewer User Fees
650,000.00
739,522.99
89,522.99
Recycling Tonnage Grant
10,604.00
10,604.00
Clean Communities
11,500.00
2,024.27
$
13,524.27
Bulletproof Vest Partnership Grant
1,735.98
1,735.98
Body Armor Replacement
1,864.98
1,864.98
Safe and Secure Communities Grant - Salaries
29,407.00
29,407.00
Drive Sober Or Get Pulled Over Grant
5,500.00
5,500.00
Municipal Alliance Grant
9,256.00
2,000.00
11,256.00
Distracted Driving Grant
5,500.00
5,500.00
Reserve for Drunk Driving Enforcement Fund
7,713.92
7,713.92
A-2
1 of 3
A-2
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Total Miscellaneous Revenues
1,670,790.90
$
16,760.25
$
1,804,257.18
$
116,706.03
$
Receipts from Delinquent Taxes
300,000.00
286,485.87
13,514.13
*
Amount to be Raised by Taxes for Support of Municipal Budget:
Local Tax for Municipal Purposes
6,543,372.00
6,669,311.55
125,939.55
Minimum Library Tax
269,509.00
269,509.00
6,812,881.00
6,938,820.55
125,939.55
Budget Totals
9,514,034.90
16,760.25
9,759,926.60
229,131.45
$
Nonbudget Revenue
465,947.10
9,514,034.90
$
16,760.25
$
10,225,873.70
$
A-2
2 of 3
A-2
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(continued)
Allocation of Current Tax Collections:
Revenue from Collection of Current Taxes
23,914,613.94
$
Allocated to:
Local School District Taxes
8,539,307.00
$
Regional High School Taxes
6,752,960.00
County Taxes
2,152,726.39
17,444,993.39
Balance for Support of Municipal Budget
6,469,620.55
Add: Appropriation "Reserve for Uncollected Taxes"
469,200.00
Realized for Support of Municipal Budget
6,938,820.55
$
Receipts from Delinquent Taxes:
Delinquent Tax Collections
286,485.87
$
Analysis of Nonbudget Revenue:
Treasurer:
Cable Television Franchise Fees
101,696.14
$
Prior Year Police Outside Duty Administrative Fees
231,282.79
Hotel Tax
18,442.02
NJ Senior Citizens & Veterans Deductions - Admin Fee
785.36
Interest on Investments
68,438.49
Motor Vehicle Inspection Fees
200.00
Prior Year Refund
41,856.95
Other Miscellaneous
2,117.16
464,818.91
$
Tax Collector - Other Miscellaneous Revenue
573.00
Statutory Excess Due from Animal Control Trust Fund
555.19
465,947.10
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
A-3
1 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
GENERAL GOVERNMENT:
Mayor & Council:
Salaries & Wages
27,750.00
$
27,750.00
$
27,750.00
$
Other Expenses
1,800.00
1,800.00
1,800.00
Municipal Clerk:
Salaries & Wages
116,757.00
116,757.00
109,303.93
7,453.07
$
Other Expenses
57,705.00
57,705.00
49,204.21
8,500.79
Financial Administration:
Salaries & Wages
95,157.00
95,157.00
94,341.00
816.00
Other Expenses
20,525.00
20,525.00
18,303.30
2,221.70
Audit
25,500.00
25,500.00
20,390.00
5,110.00
Tax Assessment Administration:
Salaries & Wages
20,500.00
20,500.00
20,400.02
99.98
Other Expenses
5,400.00
5,400.00
4,061.78
1,338.22
Revenue Administration (Tax Collection):
Salaries & Wages
61,500.00
61,500.00
61,500.00
Other Expenses
12,350.00
11,850.00
7,102.85
4,747.15
Legal Services and Costs:
Other Expenses
124,300.00
119,300.00
85,691.03
33,608.97
Engineering Services:
Other Expenses
54,000.00
54,000.00
40,518.12
13,481.88
Municipal Land Use Law (N.J.S.A. 40A:55D-1):
Land Use Board:
Salaries & Wages
21,800.00
21,800.00
21,750.00
50.00
Other Expenses
19,250.00
18,750.00
17,904.00
846.00
Zoning Commission:
Salaries & Wages
14,200.00
14,200.00
14,126.00
74.00
Other Expenses
400.00
400.00
400.00
Appropriations
A-3
1 of 8
A-3
2 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
GENERAL GOVERNMENT (continued):
Insurance:
Employee Group Insurance
594,400.00
$
589,400.00
$
462,909.96
$
126,490.04
$
Workers' Compensation
59,066.00
59,066.00
59,066.00
General Liability Insurance
117,457.00
117,457.00
96,791.31
20,665.69
Health Benefit Waiver
11,000.00
14,100.00
14,083.34
16.66
Unemployment Insurance
7,500.00
7,500.00
7,500.00
PUBLIC SAFETY:
Volunteer Fire/Ambulance:
Other Expenses
82,825.00
82,825.00
79,888.77
2,936.23
Uniform Fire Safety Act (P.L. 1983, Ch. 383):
Fire Prevention Bureau:
Salaries & Wages
46,500.00
46,500.00
45,871.98
628.02
Other Expenses
5,900.00
5,900.00
5,607.96
292.04
Office of Emergency Management:
Salaries & Wages
5,000.00
5,000.00
4,999.92
0.08
Other Expenses
2,800.00
2,800.00
2,800.00
Police:
Salaries & Wages
2,146,146.00
2,146,146.00
2,056,924.49
89,221.51
Other Expenses
148,200.00
148,200.00
142,173.26
6,026.74
Alarm System - Police and Fire:
Other Expenses
135,200.00
135,200.00
135,193.61
6.39
PUBLIC WORKS:
Road Repair and Maintenance:
Salaries & Wages
371,000.00
371,000.00
358,010.77
12,989.23
Other Expenses
199,200.00
199,200.00
166,886.05
32,313.95
Appropriations
A-3
2 of 8
A-3
3 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
PUBLIC WORKS: (Continued)
Other Public Works:
Other Expenses
4,000.00
$
4,000.00
$
4,000.00
$
Shade Tree Commission:
Other Expenses
19,500.00
19,000.00
18,221.74
$
778.26
Sewer:
Salaries & Wages
112,800.00
112,800.00
112,800.00
Other Expenses
36,900.00
36,900.00
36,900.00
Public Building and Grounds:
Other Expenses
104,845.00
109,845.00
109,845.00
Vehicle Maintenance:
Other Expenses
52,500.00
52,500.00
52,500.00
HEALTH AND WELFARE:
Board of Health:
Salaries & Wages
2,655.00
2,655.00
2,655.00
Other Expenses
139,785.00
136,785.00
134,343.71
2,441.29
Senior Citizens' Programs:
Salaries & Wages
6,200.00
6,200.00
4,725.74
1,474.26
Other Expenses
5,000.00
4,200.00
3,260.70
939.30
RECREATION AND EDUCATION:
Board of Recreation Commissioners:
Salaries & Wages
42,700.00
42,700.00
36,770.00
5,930.00
Other Expenses
48,024.00
48,024.00
32,216.48
15,807.52
Maintenance of Parks:
Other Expenses
27,400.00
27,400.00
22,601.09
4,798.91
Celebration of Public Events:
Other Expenses
11,700.00
11,700.00
9,200.00
2,500.00
Appropriations
A-3
3 of 8
A-3
4 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
UNIFORM CONSTRUCTION CODE:
Uniform Construction Code Enforcement:
Salaries & Wages
21,600.00
$
24,200.00
$
24,103.93
$
96.07
$
Other Expenses
700.00
700.00
471.13
228.87
Construction Code Official:
Salaries & Wages
37,600.00
37,600.00
37,370.04
229.96
Other Expenses
1,200.00
1,200.00
1,186.55
13.45
UNCLASSIFIED:
Utilities:
Gasoline and Diesel
29,000.00
29,000.00
27,566.93
1,433.07
Electricity
48,000.00
48,000.00
39,349.53
8,650.47
Natural Gas
17,000.00
17,000.00
11,750.76
5,249.24
Street Lighting
73,000.00
73,000.00
71,382.82
1,617.18
Telephone
34,000.00
34,000.00
21,291.22
12,708.78
Salary Adjustments
13,086.00
10,086.00
10,086.00
Solid Waste Disposal:
Salaries & Wages
36,800.00
36,800.00
34,213.02
2,586.98
Other Expenses
622,500.00
620,000.00
596,239.01
23,760.99
Total Operations Within "CAPS"
6,159,583.00
6,149,483.00
5,673,818.06
475,664.94
Contingent
500.00
500.00
500.00
Total Operations including Contingent within "CAPS"
6,160,083.00
6,149,983.00
5,673,818.06
476,164.94
Detail:
Salaries & Wages
3,186,665.00
3,199,351.00
3,067,615.84
121,649.16
Other Expenses
2,973,418.00
2,950,632.00
2,606,202.22
354,515.78
Appropriations
A-3
4 of 8
A-3
5 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
DEFERRED CHARGES AND STATUTORY EXPENDITURES:
Budget
Modification
Charged
Reserved
Cancelled
Statutory Expenditures:
Public Employee's Retirement System
155,580.00
$
157,680.00
$
148,066.04
$
9,613.96
$
Contribution to Social Security System (O.A.S.I.)
120,000.00
127,000.00
121,474.73
5,525.27
Police and Fireman's Retirement System of NJ
493,570.00
493,570.00
493,570.00
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
769,150.00
778,250.00
763,110.77
15,139.23
Total General Appropriations for Municipal Purposes Within "CAPS"
6,929,233.00
6,928,233.00
6,436,928.83
491,304.17
OPERATIONS EXCLUDED FROM "CAPS":
Length of Service Awards Program ("LOSAP")
20,000.00
20,000.00
20,000.00
Aid to Library (N.J.S.A. 40:54-35)
269,509.00
269,509.00
261,287.91
8,221.09
Sewerage Processing and Disposal (RVRSA)
258,000.00
258,000.00
174,988.44
83,011.56
SHARED SERVICE AGREEMENTS:
Township of Parsippany-Troy Hills - Municipal Court
81,500.00
81,500.00
76,500.00
5,000.00
Morris Hills Regional High School District - Resource Officers:
Police:
Salaries & Wages
52,500.00
52,500.00
48,186.17
4,313.83
STATE AND FEDERAL PROGRAMS OFFSET BY REVENUES:
Clean Communities Grant (N.J.S.A 40A:4-87, + $2,024.27)
11,500.00
13,524.27
13,524.27
Municipal Alliance Grant - (N.J.S.A 40A:4-87, + $2,000.00)
9,256.00
11,256.00
11,256.00
Municipal Alliance Grant - Local Match
2,314.00
3,314.00
3,314.00
Appropriations
A-3
5 of 8
A-3
6 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
OPERATIONS EXCLUDED FROM "CAPS" (Continued):
STATE AND FEDERAL PROGRAMS OFFSET BY REVENUES:
Safe and Secure Communities Grant:
Police:
Salaries & Wages
29,407.00
$
29,407.00
$
29,407.00
$
Drive Sober or Get Pulled Over Grant (N.J.S.A. 40A:4-87, + $5,500.00):
Police:
Salaries & Wages
5,500.00
5,500.00
Distracted Driving Grant (N.J.S.A. 40A:4-87, + $5,500.00):
Police:
Salaries & Wages
5,500.00
5,500.00
Drunk Driving Enforcement Fund:
Police:
Salaries & Wages
7,713.92
7,713.92
7,713.92
Body Armor Grant:
Police:
Salaries & Wages
1,864.98
1,864.98
1,864.98
Bulletproof Vest Partnership Grant (N.J.S.A. 40A:4-87, + $1,735.98):
Police:
Salaries & Wages
1,735.98
1,735.98
Recycling Tonnage Grant
10,604.00
10,604.00
10,604.00
Total Operations Excluded from "CAPS"
754,168.90
771,929.15
651,382.67
120,546.48
$
Detail:
Salaries & Wages
91,485.90
104,221.88
99,908.05
4,313.83
Other Expenses
662,683.00
667,707.27
551,474.62
116,232.65
Appropriations
A-3
6 of 8
A-3
7 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS":
Capital Improvement Fund
55,000.00
$
55,000.00
$
55,000.00
$
DPW Equipment
15,000.00
15,000.00
2,520.00
12,480.00
$
Fire Equipment
11,000.00
11,000.00
9,299.00
1,701.00
Buildings & Grounds Equipment
17,600.00
17,600.00
17,600.00
Police Equipment
20,000.00
20,000.00
20,000.00
Recreation Equipment
90,000.00
90,000.00
72,241.35
17,758.65
Sewer Capital Improvements
165,000.00
165,000.00
55,527.00
109,473.00
Administration
4,000.00
4,000.00
4,000.00
Total Capital Improvements - Excluded from "CAPS"
377,600.00
377,600.00
236,187.35
141,412.65
MUNCIPAL DEBT SERVICE - EXCLUDED FROM "CAPS":
Payment of Bond Principal
375,000.00
375,000.00
375,000.00
Payment of Bond Anticipation Notes and Capital Notes
367,000.00
367,000.00
367,000.00
Interest on Bonds
55,200.00
55,200.00
54,572.16
627.84
$
Interest on Notes
153,633.00
153,633.00
153,633.00
Payment of Bond Anticipation Notes and Capital Notes (Sewer)
33,000.00
33,000.00
33,000.00
Total Municipal Debt Service - Excluded from "CAPS"
983,833.00
983,833.00
983,205.16
627.84
Total General Appropriations - Excluded from "CAPS"
2,115,601.90
2,133,362.15
1,870,775.18
261,959.13
627.84
Subtotal General Appropriations
9,044,834.90
9,061,595.15
8,307,704.01
753,263.30
627.84
Reserve for Uncollected Taxes
469,200.00
469,200.00
469,200.00
Total General Appropriations
9,514,034.90
$
9,530,795.15
$
8,776,904.01
$
753,263.30
$
627.84
$
Ref.
A
Appropriations
A-3
7 of 8
A-3
8 of 8
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Ref.
Analysis of
Budget After
Paid or
Modification
Charged
Adopted Budget
9,514,034.90
$
Added by N.J.S.A. 40A:4-87
16,760.25
9,530,795.15
$
Reserve for Uncollected Taxes
469,200.00
$
Reserve for Encumbrances
A
279,810.48
Reserve for Sewer Improvements
21,000.78
Reserve for Master Plan
16,000.00
Transferred to Federal and State Grant Appropriated
90,420.15
Cash Disbursed
8,121,633.08
8,998,064.49
Less: Appropriation Refunds
221,160.48
8,776,904.01
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
TRUST FUNDS
B
1 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
Ref.
2019
2018
ASSETS
Animal Control Fund:
Cash and Cash Equivalents:
Cash - Treasurer
B-4
28,185.79
$
30,407.19
$
28,185.79
30,407.19
Other Trust Funds:
Cash and Cash Equivalents
B-4
1,518,885.65
1,381,743.71
Police Outside Duty Receivable
4,393.01
Due from Current Fund
A
156,000.00
1,523,278.66
1,537,743.71
TOTAL ASSETS
1,551,464.45
$
1,568,150.90
$
LIABILITIES, RESERVES AND FUND BALANCE
Animal Control Fund:
Due to State of New Jersey:
Board of Health
52.80
$
61.20
$
Due to Current Fund
A
555.19
744.99
Prepaid Animal Licenses
771.60
879.80
Reserve for Animal Control Expenditures
B-6
26,806.20
28,721.20
28,185.79
30,407.19
December 31,
B
2 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
Ref.
2019
2018
LIABILITIES, RESERVES AND FUND BALANCE (Cont'd)
Other Trust Funds:
Reserve for:
Tax Sale Premiums
123,900.00
$
149,100.00
$
Council on Affordable Housing
196,518.40
168,856.92
State Unemployment Insurance
83,054.59
73,227.60
Deferred Sick Leave
231,618.46
251,883.58
Shade Tree
362.00
650.00
Trust Escrow
183,135.45
180,132.77
Addison Hills Escrow
9,555.37
9,540.31
Forfeited Assets
28,933.20
25,709.88
Recycling
25,860.47
37,461.24
Tree Replacement
11,487.12
11,237.12
Parking Offenses Adjudication Act
2,685.26
2,645.26
Public Defender
15,468.46
13,368.46
D.A.R.E.
1,575.75
1,575.75
Vital Life
1,000.00
1,000.00
State of NJ Housing
772.77
772.77
Uniform Construction Code
4,695.00
4,695.00
National Night Out
2,373.90
1,703.30
Fire Prevention
10,526.75
8,471.75
Police Outside Duty
121,725.73
Recreation
61,604.41
57,109.97
Storm Recovery
528,151.30
416,876.30
1,523,278.66
1,537,743.71
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
1,551,464.45
$
1,568,150.90
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
December 31,
B-1
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
B-2
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
NOT APPLICABLE
B-3
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
GENERAL CAPITAL FUND
C
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
Ref.
2019
2018
ASSETS
Cash and Cash Equivalents
C-2
3,463,824.88
$
3,208,348.73
$
Due from County of Morris:
Community Development Block Grant - Community Center
79,821.11
Historic Society Preservation Trust
116,825.00
NJ Department of Transportation
305,000.00
305,000.00
Deferred Charges to Future Taxation:
Funded
810,000.00
1,185,000.00
Unfunded
C-4
5,958,157.00
5,754,159.00
TOTAL ASSETS
10,536,981.88
$
10,649,153.84
$
LIABILITIES, RESERVES AND FUND BALANCE
Bond Anticipation Notes Payable
C-7
5,559,009.00
$
5,121,093.00
$
Serial Bonds Payable
C-8
810,000.00
1,185,000.00
Improvement Authorizations:
Funded
C-5
200,462.52
570,244.97
Unfunded
C-5
3,737,838.08
3,425,240.49
Capital Improvement Fund
C-6
101,814.50
85,304.50
Reserve to Pay Debt Service
12,887.91
147,301.32
Fund Balance
C-1
114,969.87
114,969.56
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
10,536,981.88
$
10,649,153.84
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
C-1
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
Ref
Balance December 31, 2018
C
114,969.56
$
Increased by:
Improvement Authorizations Cancelled
0.31
Balance December 31, 2019
C
114,969.87
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
WATER UTILITY FUND
D
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31
Ref.
2019
2018
ASSETS
Operating Fund:
Cash and Cash Equivalents:
Treasurer
D-4
1,125,032.22
$
1,305,433.52
$
Change Fund
100.00
100.00
1,125,132.22
1,305,533.52
Due from Water Utility Capital Fund
D
4,695.99
1,129,828.21
1,305,533.52
Receivables and Other Assets with Full Reserves:
Consumer Accounts Receivable
D-6
213,779.62
208,632.98
Total Operating Fund
1,343,607.83
1,514,166.50
Capital Fund:
Cash and Cash Equivalents
D-4
2,671,219.73
2,003,738.27
Due from Water Utility Operating Fund
D
82,000.00
Fixed Capital
D-7
7,539,586.24
7,426,425.74
Fixed Capital Authorized and Uncompleted
D-8
5,096,287.57
3,943,287.57
Total Capital Fund
15,307,093.54
13,455,451.58
TOTAL ASSETS
16,650,701.37
$
14,969,618.08
$
D
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31
Ref.
2019
2018
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Appropriation Reserves:
Unencumbered
D-3; D-9
425,284.39
$
359,232.28
$
Encumbered
D-3; D-9
68,069.49
73,388.71
493,353.88
432,620.99
Due to Water Utility Capital Fund
D
82,000.00
Accounts Payable
6,791.50
18,900.00
Accrued Interest on Notes
15,958.60
11,262.61
Accrued Interest on Bonds
21,696.10
22,633.60
537,800.08
567,417.20
Reserve for Receivables
D
213,779.62
208,632.98
Fund Balance
D-1
592,028.13
738,116.32
Total Operating Fund
1,343,607.83
1,514,166.50
Capital Fund:
Serial Bonds Payable
D-14
1,310,000.00
1,360,000.00
Bond Anticipation Notes Payable
D-13
3,481,876.00
2,024,758.00
Improvement Authorizations:
Funded
D-10
58,610.68
38,259.60
Unfunded
D-10
2,624,918.20
2,439,701.35
Capital Improvement Fund
D-11
190,112.04
150,112.04
Due to Water Utility Operating Fund
D
4,695.99
Reserve to Pay Debt Service
D-5
5,102.14
74,674.60
Reserve for Water Capital Improvements
150,063.08
205,063.08
Deferred Reserve for Amortization
D-12
329,241.15
274,241.15
Reserve for Amortization
D-12A
7,147,676.66
6,883,844.16
Fund Balance
D-1A
4,797.60
4,797.60
Total Capital Fund
15,307,093.54
13,455,451.58
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
16,650,701.37
$
14,969,618.08
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
D-1
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
Year Ended December 31,
Ref.
2019
2018
Revenue and Other Income Realized
Fund Balance Utilized
464,000.00
$
301,000.00
$
Water Rents
1,707,202.28
1,706,740.78
Miscellaneous
24,826.10
50,442.23
Nonbudget Revenue
33,965.87
101,066.86
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
246,549.32
281,548.61
Total Income
2,476,543.57
2,440,798.48
Expenditures
Budget Expenditures:
Operating
1,614,750.00
1,503,965.00
Capital Improvements
269,000.00
250,700.00
Debt Service
196,161.76
156,244.42
Deferred Charges and Statutory Expenditures
78,720.00
82,838.00
Total Expenditures
2,158,631.76
1,993,747.42
Excess in Revenue
317,911.81
447,051.06
Fund Balance
Balance January 1
D
738,116.32
592,065.26
1,056,028.13
1,039,116.32
Decreased by:
Utilized by Water Utility Operating Budget
464,000.00
301,000.00
Balance December 31
D
592,028.13
$
738,116.32
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
D-1A
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
STATEMENT OF CAPITAL FUND BALANCE - REGULATORY BASIS
Ref.
Balance December 31, 2018
D
4,797.60
$
Balance December 31, 2019
D
4,797.60
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
D-2
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
Anticipated
Realized
Excess
Fund Balance Anticipated
464,000.00
$
464,000.00
$
Rents
1,678,570.00
1,707,202.28
28,632.28
$
Miscellaneous Revenue Anticipated
17,000.00
24,826.10
7,826.10
2,159,570.00
2,196,028.38
36,458.38
Nonbudget Revenue
33,965.87
33,965.87
2,159,570.00
$
2,229,994.25
$
70,424.25
$
Analysis of Revenue - Rents
Collections
1,707,202.28
$
1,707,202.28
$
Miscellaneous Revenue Anticipated:
Collector:
Water Allocation Fees
3,570.00
$
Sprinklers
15,481.10
Hydrants
5,775.00
24,826.10
$
Nonbudget Revenue:
Collector:
Interest and Penalties
6,704.25
$
Treasurer:
Interest on Investments
10,098.35
$
Due from Water Utility Capital Fund:
Interest on Investments
17,163.27
27,261.62
33,965.87
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
D-3
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
Appropriation
Expended by
Budget
Unexpended
After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
Operating:
Salaries and Wages
563,700.00
$
563,700.00
$
512,438.03
$
51,261.97
$
Other Expenses
1,051,050.00
1,051,050.00
902,836.34
148,213.66
Capital Improvements:
Capital Improvement Fund
40,000.00
40,000.00
40,000.00
Capital Outlay
229,000.00
229,000.00
11,113.41
217,886.59
Debt Service:
Payment of Bonds
50,000.00
50,000.00
50,000.00
Payment of Bond Interest
60,357.00
60,357.00
59,418.76
938.24
$
Payment of Bond Anticipation Notes and Capital Notes
26,000.00
26,000.00
26,000.00
Interest on Notes
60,743.00
60,743.00
60,743.00
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
26,220.00
26,220.00
26,220.00
Unemployment Insurance
7,500.00
7,500.00
7,500.00
Social Security System (O.A.S.I.)
45,000.00
45,000.00
37,077.83
7,922.17
2,159,570.00
$
2,159,570.00
$
1,733,347.37
$
425,284.39
$
938.24
$
Ref.
D
Cash Disbursed
1,546,196.12
$
Accrued Interest on Bonds
59,418.76
Accrued Interest on Notes
60,743.00
Encumbrances Payable
D
68,069.49
1,734,427.37
Less: Appropriation Refunds
1,080.00
1,733,347.37
$
THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
D-3
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
SEWER UTILITY FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
PUBLIC ASSISTANCE FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
BOND AND INTEREST FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
GENERAL FIXED ASSETS ACCOUNT GROUP
H
BOROUGH OF ROCKAWAY
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
2019
2018
ASSETS
Land
9,407,660.00
$
9,407,660.00
$
Buildings
4,269,606.00
4,269,606.00
Equipment and Vehicles
7,286,806.22
6,971,456.30
TOTAL ASSETS
20,964,072.22
$
20,648,722.30
$
RESERVES
Investment in Fixed Assets
20,964,072.22
$
20,648,722.30
$
TOTAL RESERVES
20,964,072.22
$
20,648,722.30
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
Note 1:
Summary of Significant Accounting Policies
A. Reporting Entity
Except as noted below, the financial statements of the Borough of Rockaway include every board,
body, officer or commission supported and maintained wholly or in part by funds appropriated by the
Borough of Rockaway, as required by N.J.S. 40A:5-5. Accordingly, the financial statements of the
Borough of Rockaway do not include the operations of the Library or Volunteer Fire and First Aid
Squads.
Governmental Accounting Standards Board publication Codification of Government Accounting and
Financial Reporting Standards (“GASB”), Section 2100 “Defining the Financial Reporting Entity"
establishes standards to determine whether a governmental component unit should be included in the
financial reporting entity. Component units are legally separate organizations for which the elected
officials of the primary government are financially accountable. In addition, component units can be
other organizations for which the nature and significance of their relationship with a primary
government are such that exclusion would cause the reporting entity's financial statements to be
misleading. The primary government is financially accountable if it appoints a voting majority of the
organization's governing body and (1) it is able to impose its will on that organization or (2) there is
a potential for the organization to provide specific financial benefits to, or impose specific financial
burdens on, the primary government. A legally separate, tax-exempt organization should be reported
as a component unit of a reporting entity if all of the following criteria are met: (1) The economic
resources received or held by the separate organization are entirely or almost entirely for the direct
benefit of the primary government, its component units, or its constituents. (2) The primary
government, or its component units, is entitled to, or has the ability to otherwise access, a majority of
the economic resources received or held by the separate organization. (3) The economic resources
received or held by an individual organization that the specific primary government, or its component
units, is entitled to, or has the ability to otherwise access, are significant to that primary government.
As the financial reporting entity was established in accordance with New Jersey statutes, the
requirements of GASB Codification Section 2100 were not followed and, accordingly, the reporting
entity could be different from accounting principles generally accepted in the United States of
America.
B. Description of Funds
The accounting policies of the Borough of Rockaway conform to the accounting practices applicable
to municipalities which have been prescribed or permitted by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey (the "Division"). Such practices
are designed primarily for determining compliance with legal provisions and budgetary restrictions
and as a means of reporting on the stewardship of public officials with respect to public funds. Under
this method of accounting, the Borough of Rockaway accounts for its financial transactions through
the following separate funds:
Current Fund - Resources and expenditures for governmental operations of a general nature, including
federal and state grant funds.
Trust Fund - Receipt, custodianship and disbursement of funds in accordance with the purpose for
which each reserve was created.
1
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 1:
Summary of Significant Accounting Policies (Cont'd)
B. Description of Funds (Cont’d)
General Capital Fund - Receipt and disbursement of funds for the acquisition of general capital
facilities, other than those acquired in the Current Fund.
Water Utility Operating and Capital Fund – Account for the operations and acquisition of capital
facilities of the municipally owned water utility.
General Fixed Assets Account Group – Estimated values of land, buildings and certain fixed assets
of the Borough as discussed in Note 1E – “Basis of Accounting”.
C. Basis of Accounting
Basis of accounting refers to when revenue and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus applied.
The following is a summary of the significant accounting policies.
Revenue is recorded when received in cash except for certain amounts which may be due from the
State of New Jersey and for the prepayment of future years' revenue. Grant revenue is realized in the
operating funds when it is budgeted and in the capital funds when improvements are authorized. The
amounts recorded as property taxes and consumer accounts receivable have not been included in
revenue. Amounts that are due to the municipality, which are susceptible of accrual, are recorded as
receivables with offsetting reserves in the Current Fund.
Expenditures are charged to operations generally based on budgeted amounts. Exceptions to this
general rule include:
1.
Accumulated unpaid vacation, sick pay and other employee amounts are not accrued.
2.
Prepaid expenses, such as insurance premiums applicable to subsequent periods, are
charged to current budget appropriations in total.
3.
Principal and interest on long-term debt are recognized when due.
Expenditures, if any, in excess of appropriations, appropriation reserves or ordinances become
deferred charges which must be raised by future taxes. Outstanding encumbrances at December 31
are reported as a cash liability in the financial statements and constitute part of the statutory
appropriation reserve balance. Appropriation reserves covering unexpended appropriation balances
are automatically created at December 31 of each year and recorded as liabilities, except for amounts
which may be cancelled by the governing body. Appropriation reserves are available, until lapsed at
the close of the succeeding year, to meet specific claims, commitments or contracts incurred during
the preceding fiscal year. Lapsed appropriation reserves are recorded as income.
2
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 1:
Summary of Significant Accounting Policies (Cont'd)
C. Basis of Accounting (Cont’d)
Had the Borough's financial statements been prepared under generally accepted accounting
principles, encumbrances would not be considered as expenditures; appropriation reserves would not
be recorded; revenue susceptible to accrual would have been reflected without offsetting reserves;
Federal and State grants and assistance would be recognized when earned, not when received;
inventories would not be reflected as expenditures at the time of purchase; fixed assets purchased by
the Water Utility Capital Fund would be depreciated, investments would generally be stated at fair
value, and the Borough’s net pension liability and related deferred inflows and outflows would be
recorded.
The cash basis of accounting is followed in the Trust and Capital Funds.
D. Deferred Charges to Future Taxation
The General Capital Fund balance sheet includes both funded and unfunded deferred charges.
Funded deferred charges represent improvement authorizations where permanent financing has been
obtained. Unfunded deferred charges represent improvement authorizations where no or temporary
financing has been obtained. A municipality can permanently finance unfunded deferred charges
through budget appropriation, grant funds, or by issuing bonds, loans or capital lease purchase
agreements.
E. Other significant accounting policies include:
Management Estimates – The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of revenue and expenditures/expenses
during the period reported. Actual results could differ from those estimates.
Cash and Cash Equivalents – Amounts include petty cash, change funds, amounts on deposit, and
short-term investments with original maturities of three months or less.
Investments – Investments are stated at cost.
Allowance for Uncollectible Accounts – No allowance for uncollectible accounts has been recorded
as all amounts are considered collectible.
Compensated Absences - Expenditures relating to unused vested accumulated vacation and sick pay
are not recorded until paid.
Foreclosed Property - Foreclosed property is recorded in the Current Fund at the assessed valuation
when such property was acquired and is fully reserved.
Interfunds - 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.
3
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 1:
Summary of Significant Accounting Policies (Cont'd)
E. Other significant accounting policies include: (Cont’d)
Inventories of Supplies - The cost of inventories of supplies for all funds are recorded as expenditures
at the time individual items are purchased. The cost of inventories is not included on the various
balance sheets.
Grants Receivable - Grants receivable represent the total grant awards less amounts collected to date.
Because the amount of grant funds to be collected are dependent on the total costs eligible for
reimbursement, the actual amount collected may be less than the total amount awarded.
General Fixed Assets – General fixed assets are recorded at cost or estimated historical cost.
Infrastructure assets are not included in general fixed assets, as per state directive. Major renewals
and betterments are charged to the asset accounts; maintenance and minor repairs and replacements,
which do not improve or extend the lives of the respective assets, are expensed currently. Donated
fixed assets are valued at their fair market value on the date donated. Fixed assets are reviewed for
impairment.
The total value recorded for general fixed assets is offset by an “Investment in Fixed Assets”. When
properties are retired or otherwise disposed of, the asset and the reserve are adjusted accordingly.
Assets recorded in the General Fixed Assets Account Group may also be recorded in the Current
Fund, General Capital Fund and Water Utility Fund. The values recorded in the general fixed assets
account group and the capital funds may not always agree due to differences in valuation methods,
timing of recognition of assets, and the recognition of infrastructures.
Property and equipment purchased by the Water Utility Fund are recorded in the capital account at
cost and does not purport to represent replacement costs or current value. Contributions in aid of
construction are not capitalized and depreciation is not recorded. The balances in the Reserve for
Amortization and Deferred Reserve for Amortization accounts in the Water Utility Capital Fund
represent charges to operations for the acquisition cost of property, equipment and improvements.
F.
Budget/Budgetary Control – Annual budgets are usually prepared in the first quarter for the Current
and Water Utility Operating Funds. Budgets are prepared on the cash basis of accounting and are
submitted to the governing body and the Division of Local Government Services. The legal level of
budgetary control is established at the line item accounts within each fund and are defined as the
lowest (most specific) level of detail as established pursuant to the flexible chart of accounts
referenced in N.J.S.A. 40A. All budget amendments/transfers must be approved by the Borough
Council during the year.
4
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 2:
Long-Term Debt
The Local Bond Law governs the issuance of bonds to finance general Borough capital expenditures. All
bonds are retired in serial installments within the statutory period of usefulness. All bonds issued by the
Borough are general obligation bonds. The Borough’s full faith and credit and taxing power have been
pledged to the payment of the general obligation debt principal and interest.
Summary of Municipal Debt
2019
2018
2017
Issued
General:
Bonds and Notes
6,369,009.00
$
6,306,093.00
$
6,054,251.00
$
Water Utility:
Bonds and Notes
4,791,876.00
3,384,758.00
3,078,535.00
11,160,885.00
9,690,851.00
9,132,786.00
Authorized but not Issued:
General:
Bonds and Notes
399,148.00
633,066.00
Water Utility:
Bonds and Notes
367,080.00
826,870.00
Total Authorized but not Issued
766,228.00
1,459,936.00
- 0 -
Less:
General:
Reserve to Pay Debt Service
12,887.91
147,301.32
53,684.80
Water Utility:
Reserve to Pay Debt Service
5,102.14
74,674.60
16,236.81
17,990.05
221,975.92
69,921.61
Net Bonds and Notes Issued and
Authorized but not Issued
11,909,122.95
$
10,928,811.08
$
9,062,864.39
$
December 31,
Summary of Statutory Debt Condition –Annual Debt Statement
The summarized statement of debt condition, which follows, is prepared in accordance with the required
method of setting up the Annual Debt Statement and indicates a statutory net debt of .821%.
Gross Debt
Deductions
Net Debt
School Debt
1,869,601.33
$
1,869,601.33
$
Water Utility Debt
5,158,956.00
5,158,956.00
General Debt
6,768,157.00
12,887.91
6,755,269.09
$
13,796,714.33
$
7,041,445.24
$
6,755,269.09
$
Net Debt: $6,755,269.09 divided by Average Equalized Valuations of $822,916,366 of Real Property =
0.821%.
5
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 2:
Long-Term Debt (Cont’d)
Borrowing Power Under N.J.S. 40A:2-6 As Amended
3-1/2% Average Equalized Valuation of Real Property
28,802,072.81
$
Net Debt
6,755,269.09
Remaining Borrowing Power
22,046,803.72
$
Calculation of "Self-Liquidating Purpose", Water Utility Per N.J.S.40A:2-45
Cash Receipts from Fees, Rents or Other Charges for Year
2,229,994.25
$
Deductions:
Operating and Maintenance Cost
1,693,470.00
$
Debt Service
196,161.76
1,889,631.76
Excess in Revenue
340,362.49
$
Footnote: If there is an “excess in revenue”, all such utility debt is deductible. If there is a “deficit”, then
utility debt is not deductible to the extent of 20 times such deficit amount. The foregoing debt information
is in agreement with the Annual Debt Statement filed by the Chief Financial Officer.
Summary of Municipal Debt Issued and Outstanding - Current Year
Balance
Balance
Fund
12/31/2018
Additions
Retirements
12/31/2019
Serial Bonds:
General Capital Fund
1,185,000.00
$
375,000.00
$
810,000.00
$
Water Utility Capital Fund
1,360,000.00
50,000.00
1,310,000.00
Bond Anticipation Notes:
General Capital Fund
5,121,093.00
5,559,009.00
$
5,121,093.00
5,559,009.00
Water Utility Capital Fund
2,024,758.00
3,481,876.00
2,024,758.00
3,481,876.00
9,690,851.00
$
9,040,885.00
$
7,570,851.00
$
11,160,885.00
$
Summary of Municipal Debt Issued and Outstanding - Prior Year
Balance
Balance
Fund
12/31/2017
Additions
Retirements
12/31/2018
Serial Bonds:
General Capital Fund
1,550,000.00
$
365,000.00
$
1,185,000.00
$
Water Utility Capital Fund
1,410,000.00
50,000.00
1,360,000.00
Bond Anticipation Notes:
General Capital Fund
4,504,251.00
5,121,093.00
$
4,504,251.00
5,121,093.00
Water Utility Capital Fund
1,668,535.00
2,024,758.00
1,668,535.00
2,024,758.00
9,132,786.00
$
7,145,851.00
$
6,587,786.00
$
9,690,851.00
$
6
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 2:
Long-Term Debt (Cont’d)
Analysis of Debt Issued and Outstanding:
General Capital Serial Bonds
Purpose
Final Maturity
Rate
Amount
General Improvement Bond Series 2011
8/15/2021
4.50%
810,000.00
$
General Capital - Bond Anticipation Notes Payable
Purpose
Final Maturity
Rate
Amount
Various Capital Improvements
9/11/2020
1.50%
5,559,009.00
$
Water Utility Serial Bonds
Purpose
Final Maturity
Rate
Amount
Water Utility Bonds of 2011
8/15/2036
3.000-5.000%
1,310,000.00
$
Water Utility - Bond Anticipation Notes Payable
Purpose
Final Maturity
Rate
Amount
Various Water Improvements
9/11/2020
1.50%
3,481,876.00
$
Total Debt Issued and Outstanding
11,160,885.00
$
Schedule of Annual Debt Service for Principal and Interest for the Next Five Years and
Thereafter for Bonded Debt Issued and Outstanding
Calendar Year
Principal
Interest
Principal
Interest
Total
2020
395,000.00
$
36,450.00
$
55,000.00
$
57,856.26
$
544,306.26
$
2021
415,000.00
18,675.00
55,000.00
55,381.26
544,056.26
2022
60,000.00
52,906.26
112,906.26
2023
60,000.00
50,206.26
110,206.26
2024
65,000.00
47,206.26
112,206.26
2025-2029
360,000.00
194,931.30
554,931.30
2030-2034
455,000.00
105,218.78
560,218.78
2035-2036
200,000.00
13,125.00
213,125.00
810,000.00
$
55,125.00
$
1,310,000.00
$
576,831.38
$
2,751,956.38
$
General
Water Utility
7
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 3:
Fund Balances Appropriated
Fund balances at December 31, 2019 which were included in the introduced budget as appropriated and
as anticipated revenue for the year ending December 31, 2020 budget were as follows:
Current Fund
775,000.00
$
Water Utility Operating Fund
464,000.00
Note 4:
School District Taxes
Regulations provide for the deferral of not more than 50% of the annual levy when school taxes are raised
for a school year and have not been requisitioned by the school district. The Borough of Rockaway has
not elected to defer school taxes.
Note 5:
Deferred Charges to be Raised in Succeeding Years
Certain expenditures are required to be deferred to budgets of the succeeding years. At December 31,
2019, the Borough did not have any deferred charges on the various balance sheets that need to be raised
in the succeeding year.
Note 6:
Pension Plans
Borough employees participate in one of the two contributory, defined benefit public employee retirement
systems: the State of New Jersey Public Employee’s Retirement System (PERS) or the State of New
Jersey Police and Firemen’s Retirement System (PFRS); or the Defined Contribution Retirement Program
(DCRP), a tax-qualified defined contribution money purchase pension plan under Internal Revenue Code
(IRC) 401(a).
A. Public Employees’ Retirement System (PERS)
Plan Description
The State of New Jersey, Public Employees’ Retirement System (PERS) is a cost-sharing multiple-
employer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and
Benefits (the Division). For additional information about the PERS, please refer to the Division’s
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
www.state.nj.us/treasury/pensions/financial-reports.shtml.
8
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Benefits Provided
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 for 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 to Tier 5 members upon reaching age 65. Early retirement benefits
are available to Tiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 with 25 or more years of
service credit before age 62 and Tier 5 with 30 or more years of service credit before age 65. Benefits
are reduced by a fraction of a percent for each month that a member retires prior to the age at which a
member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members
can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred
retirement is available to members who have at least 10 years of service credit and have not reached the
service retirement age for the respective tier.
Contributions
The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members
and contributing members. The local employers’ contribution amounts are based on an actuarially
determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009
provided an option for local employers of PERS to contribute 50% of the normal and accrued liability
contribution amounts certified for payments due in State fiscal year 2009. Such employers will be
credited with the full payment and any such amounts will not be included in their unfunded liability. The
actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced
normal and accrued liability contributions provided under this law. This unfunded liability is being paid
by the employer in level annual payments over a period of 15 years, which began with the payments due
in the fiscal year ended June 30, 2012 and are adjusted by the rate of return on the actuarial value of
assets. Borough contributions to PERS amounted to $174,800 for 2019.
The employee contribution rate was 7.50% effective July 1, 2018.
9
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Pension Liabilities and Pension Expense
At June 30, 2018, the Borough’s liability was $3,450,028 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which
was rolled forward to June 30, 2018. The Borough's proportion 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 members, actuarially determined. At June 30, 2018, the Borough's
proportion was 0.0175%, which was a decrease of 0.001% from its proportion measured as of June 30,
2017. The Borough has rolled forward the net pension liability as of June 30, 2018 with no adjustments.
The State of New Jersey Public Employees’ Retirement System (PERS)’ valuation cycle is July 1 instead
of December 31. The roll forward methodology puts them a year in arrears in terms of valuation. The
Division of Local Government Services, Department of Community Affairs, State of New Jersey is
permitting municipalities to include the June 30, 2018 pension information in the Notes to the Financial
Statements as the June 30, 2019 pension information has not been released as of the date of this audit.
For the year ended December 31, 2019, the Borough recognized actual pension expense in the amount of
$174,800.
Actuarial Assumptions
The total pension liability for the June 30, 2018 measurement date was determined by an actuarial
valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the
following actuarial assumptions:
Inflation Rate
2.25%
Salary Increases:
Through 2026
1.65 – 4.15% based on age
Thereafter
2.65 – 5.15% based on age
Investment Rate of Return
7.00%
Pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for
male and female active participants. For local employees, mortality tables are set back 2 years for males
and 7 years for females. In addition, the tables provide for future improvements in mortality from the
base year of 2013 using a generational approach based on the Conduent modified 2014 projection scale.
Post-retirement mortality rates were based on the RP-2000 Combined Healthy Male and Female
Mortality Tables (set back 1 year for males and females) for service retirements and beneficiaries of
former members. In addition, the tables for service retirements and beneficiaries of former members
provide for future improvements in mortality from 2012 to 2013 using Projection Scale AA and using a
generational approach based on the Conduent 2014 projection scale thereafter. Disability retirement rates
used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for
males and set forward one year for females).
10
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Actuarial Assumptions (Cont’d)
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial
experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not
exactly conform to these assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience
deviates, the larger the impact on future financial statements.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments
(7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of
the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the
actuaries. The long-term expected rate of return was determined using a building block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real
rates of return for each major asset class included in PERS’ target asset allocation as of June 30, 2018 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Management Strategies
5.00%
5.51%
Cash Equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment Grade Credit
10.00%
3.78%
High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Market Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
11
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Discount Rate
The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. This single
blended discount rate was based on the long-term expected rate of return on pension plan investments of
7.00% and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20 Bond
Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average
rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current member contribution rates and that
contributions from employers will be made based upon the contribution rate in the most recent fiscal year.
The local employers contributed 100% of their actuarially determined contributions. Based on those
assumptions, the plan's fiduciary net position was projected to be available to make projected future
benefit payments of current plan members through June 30, 2046. Therefore, the long-term expected rate
of return on plan investments was applied to projected benefit payments through June 30, 2046, and the
municipal bond rate was applied to projected benefit payments after that date in determining the total
pension liability.
Sensitivity of the Borough's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the Borough's proportionate share of the collective net pension liability as of June
30, 2018 calculated using the discount rate as disclosed below, 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 or 1-percentage-point higher than the current rate:
June 30, 2018
1%
Current
1%
Decrease
Discount Rate
Increase
(4.66%)
(5.66%)
(6.66%)
Borough's proportionate share
of the Net Pension Liability
4,338,013
$
3,450,028
$
2,705,066
$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
PERS financial statements.
12
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS)
Plan Description
The State of New Jersey Police and Firemen’s Retirement System (PFRS), is a cost-sharing multiple-
employer defined benefit pension plan administered by the State of New Jersey Division of Pensions and
Benefits (the Division). For additional information about the PFRS, please refer to the Division’s
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
www.state.nj.us/treasury/pensions/financial-reports.shtml.
Benefits Provided
The vesting and benefit provisions are set by N.J.S.A. 43:16A. The PFRS provides retirement as well as
death and disability benefits. All benefits vest after ten years of service, except disability benefits which
vest after 4 years of service.
The following represents the membership tiers for PFRS:
Tier
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
Definition
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1% for each year 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 policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members
and contributing members. The Local employers’ contribution amounts are based on an actuarially
determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009
provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability
contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited
with the full payment and any such amounts will not be included in their unfunded liability. The actuaries
will determine the unfunded liability of the retirement system, by employer, for the reduced normal and
accrued liability contributions provided under this law. This unfunded liability is being paid by the
employer in level annual amounts over a period of 15 years, which began with the payments due in the
fiscal year ended June 30, 2012 and are adjusted by the rate of return on the actuarial value of the assets.
13
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Special Funding Situation
Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions
based on actuarially determined amounts, except where legislation was passed which legally obligated
the State if certain circumstances occurred. The legislation which legally obligates the State is as follows:
Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter
109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf
of the local participating employers under this legislation is considered to be a special funding situation
as defined by GASB Statement No. 68 and the State is treated as a nonemployer contributing entity.
Since the local participating employers do not contribute under this legislation directly to the plan (except
for employer specified financed amounts), there is no net pension liability or deferred outflows or inflows
to report in the financial statements of the local participating employers related to this legislation.
However, the notes to the financial statements of the local participating employers must disclose the
portion of the nonemployer contributing entities’ total proportionate share of the collective net pension
liability that is associated with the local participating employer. The June 30, 2018 State special funding
situation net pension liability amount is the accumulated difference between the annual actuarially
determined State obligation under the special funding situation and the actual State contribution through
the valuation date. The State special funding situation pension expense for the fiscal year ended June 30,
2018 is the actuarially determined contribution amount that the State owes for the fiscal year ending June
30, 2018. The pension expense is deemed to be a State administrative expense due to the special funding
situation.
Borough contributions to PFRS amounted to $493,570 for the year ended December 31, 2019. During
the fiscal year ended June 30, 2018, the State of New Jersey contributed $54,957 to the PFRS for normal
pension benefits on behalf of the Borough, which is less than the contractually required contribution of
$109,914.
The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Pension Liabilities and Pension Expense
At June 30, 2018, the Borough’s liability for its proportionate share of the net pension liability was
$6,831,518. The net pension liability was measured as of June 30, 2018, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017
which was rolled forward to June 30, 2018. The Borough's proportion 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 members, actuarially determined. At June 30, 2018, the
Borough's proportion was 0.050%, which was an increase of 0.004% from its proportion measured as of
June 30, 2017. The Borough has rolled forward the net pension liability as of June 30, 2018 with no
adjustments. The State of New Jersey Police and Firemen’s Retirement System (PFRS)’ valuation cycle
is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of
valuation. The Division of Local Government Services, Department of Community Affairs, State of New
Jersey is permitting municipalities to include the June 30, 2018 pension information in the Notes to the
Financial Statements as the June 30, 2019 pension information has not been released as of the date of this
audit.
14
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Pension Liabilities and Pension Expense (Cont’d)
Additionally, the State’s proportionate share of the net pension liability attributable to the Borough is
$927,949 as of June 30, 2018. The net pension liability was measured as of June 30, 2018, and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2017 which was rolled forward to June 30, 2018. The State's proportionate share of the net pension
liability associated with the Borough 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 members,
actuarially determined. At June 30, 2018, the State's proportion was 0.050%, which was an increase of
0.004% from its proportion measured as of June 30, 2017 which is the same proportion as the Borough’s.
The Borough has rolled forward the net pension liability as of June 30, 2018 with no adjustments. The
State of New Jersey Police and Firemen’s Retirement System (PFRS)’ valuation cycle is July 1 instead
of December 31. The roll forward methodology puts them a year in arrears in terms of valuation.
Borough's Proportionate Share of the Net Pension Liability
6,831,518
$
State's Proportionate Share of the Net Pension Liability Associated
with the Borough
927,949
Total Net Pension Liability
7,759,467
$
For the year ended December 31, 2019, the Borough recognized total pension expense of $493,570.
Actuarial Assumptions
The total pension liability for the June 30, 2018 measurement date was determined by an actuarial
valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the
following actuarial assumptions:
Inflation Rate
2.25%
Salary Increases:
Through 2026
2.10% - 8.98% based on age
Thereafter
3.10% - 9.98% based on age
Investment Rate of Return
7.00%
Pre-retirement mortality rates were based on the RP-2000 Combined Healthy mortality tables projected
on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent
modified 2014 projection scale thereafter. For pre-retirement accidental mortality, a custom table with
representative rates was used and there is no mortality improvement assumed. Post-retirement mortality
rates for male service retirements are based on the RP-2000 Combined Healthy Mortality Tables projected
on a generational basis using Projection Scale AA from base year of 2012 to 2013 and the Conduent
modified 2014 projection scale thereafter. Post-retirement mortality rates for female service retirements
and beneficiaries were based on the RP-2000 Combined Healthy Mortality Tables projected on a
generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent
modified 2014 projection scales thereafter. Disability retirement rates were based on a custom table with
representative rates and no mortality improvement assumed.
15
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Actuarial Assumptions (Cont’d)
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial
experience study for the period July 1, 2010 to June 30, 2013.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments
(7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of
the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the
actuaries. The long-term expected rate of return was determined using a building block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real
rates of return for each major asset class included in PFRS’ target asset allocation as of June 30, 2018 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Management Strategies
5.00%
5.51%
Cash Equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment Grade Credit
10.00%
3.78%
High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Market Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
16
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Discount Rate – PFRS
The discount rate used to measure the total pension liability was 6.51% as of June 30, 2018. This single
blended discount rate was based on the long-term expected rate of return on pension plan investments of
7.00% and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20 Bond
Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average
rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current member contribution rates and that
contributions from employers and the nonemployer contributing entity will be made based on the
contribution rate in the most recent fiscal year. The State employer contributed 50% of the actuarially
determined contributions and the local employers contributed 100% of their actuarially determined
contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available
to make projected future benefit payments of current plan members through June 30, 2062. Therefore,
the long-term expected rate of return on pension plan investments was applied to projected benefit
payments through June 30, 2062, and the municipal bond rate was applied to projected benefit payments
after that date in determining the total pension liability.
Sensitivity of the Total Net Pension Liability (including the State’s proportionate share of the net pension
liability attributable to the Borough) to Changes in the Discount Rate
The following presents the total net pension liability (including the State’s proportionate share of the net
pension liability attributable to the Borough) as of June 30, 2018 calculated using the discount rate as
disclosed above, as well as what the collective net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:
June 30, 2018
1%
Current
1%
Decrease
Discount Rate
Increase
(5.51%)
(6.51%)
(7.51%)
Borough's proportionate share of the NPL and the
State's proportionate share of the Net Pension
Liability associated with the Borough
10,385,084
$
7,759,467
$
5,593,812
$
Pension Plan Fiduciary Net Position - PFRS
Detailed information about the PFRS's fiduciary net position is available in the separately issued PFRS
financial statements.
17
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 6:
Pension Plans (Cont’d)
C. Defined Contribution Retirement Program (DCRP)
Prudential Financial jointly administers the DCRP investments with the NJ Division of Pensions and
Benefits. If an employee is ineligible to enroll in the PERS or PFRS, the employee may be eligible to
enroll in the DCRP. DCRP provides eligible members with a tax-sheltered, defined contribution
retirement benefit, along with life insurance and disability coverage. Vesting is immediate upon
enrollment for members of the DCRP.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly
available financial reports that include the financial statements and required supplementary information
of the DCRP. The financial reports may be obtained by writing to the State of New Jersey, Department
of the Treasury, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625-0295.
Employers are required to contribute at an actuarially determined rate. Employee contributions are based
on percentages of 5.50% for DCRP of employees’ annual compensation, as defined. The DCRP was
established July 1, 2007, under the provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007 and
expanded under the provisions of Chapter 89, P.L. 2008. Employee contributions for DCRP are matched
by a 3% employer contribution.
For DCRP, the Borough recognized pension expense of $6,183.85 for the year ended December 31, 2019.
Employee contributions to DCRP amounted to $8,397.63 for the year ended December 31, 2019.
Note 7:
Accrued Sick and Vacation Benefits
The Borough permits employees to accrue a limited amount of unused vacation and sick pay, which may
be taken as time off or paid at a later date at an agreed-upon rate. It is estimated that the current cost of
such unpaid compensation would approximate $233,604.57 at December 31, 2019. This amount is not
reported either as an expenditure or a liability. It is expected that the cost of such unpaid compensation
would be included in the Borough’s budget operating expenditures in the year in which it is used. The
Borough has reserved $231,618.46 for Deferred Sick Leave on the Trust Fund balance sheet at December
31, 2019.
Note 8:
Selected Tax Information
Property taxes are levied as of January 1 on property values assessed as of the previous calendar year.
The tax levy is divided into two billings. The first billing is an estimate of the current year's levy based
on the prior year's taxes. The second billing reflects adjustments to the current year's actual levy. The
final tax bill is usually mailed on or before June 14th, along with the first half estimated tax bills for the
subsequent year. The first half estimated taxes are divided into two due dates, February 1 and May 1.
The final tax bills are also divided into two due dates, August 1 and November 1. A ten-day grace period
is usually granted before the taxes are considered delinquent and the imposition of interest charges. A
penalty may be assessed for any unpaid taxes in excess of $10,000 at December 31 of the current year.
Unpaid taxes of the prior year may be placed in lien at a tax sale held after April 1 and through December
31. Unpaid taxes of the current year may be placed in lien at a tax sale held after December 10.
18
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 8:
Selected Tax Information (Cont’d)
2019
2018
2017
Tax Rate
3.09
$
3.06
$
2.95
$
Apportionment of Tax Rate
Municipal
0.87
0.85
0.82
County
0.27
0.28
0.30
Local School
1.09
1.06
1.03
Regional School
0.86
0.86
0.79
Assessed Valuations
2019
785,402,692.00
$
2018
779,501,497.00
$
2017
779,819,847.00
$
Comparison of Tax Levies and Collections Currently
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage
of current collection could be an indication of a probable increase in future tax levies.
Currently
Cash
Percentage of
Year
Tax Levy
Collections
Collections
2019
24,315,947.73
$
23,914,613.94
$
98.34%
2018
23,902,781.48
23,581,503.41
98.65%
2017
23,022,336.39
22,657,188.52
98.41%
Also, increases in future tax levies can also be warranted if revenue sources outside of those directly
generated by the municipality, such as federal or state aid, should decline without corresponding
decreases in budgeted expenditures.
Note 9:
Cash and Cash Equivalents
Cash and cash equivalents include change funds, amounts on deposit, and short-term investments with
original maturities of three months or less.
Investments are stated at cost. The Borough classifies certificates of deposit which have original maturity
dates of more than three months but less than twelve months from the date of purchase, as investments.
19
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 9:
Cash and Cash Equivalents (Cont’d)
GASB require disclosure of the level of custodial credit risk assumed by the Borough in its cash, cash
equivalents and investments, if those items are uninsured or unregistered. Custodial risk is the risk that
in the event of bank failure, the government’s deposits may not be returned.
Interest Rate Risk – In accordance with its cash management plan, the Borough ensures that any deposit
or investments matures within the time period that approximates the prospective need for the funds,
deposited or invested, so that there is not a risk to the market value of such deposits or investments.
Credit Risk – The Borough limits its investments to those authorized in its cash management plan which
are permitted under state statutes as detailed on the following page.
Custodial Credit Risk – The Borough’s policy with respect to custodial credit risk requires that the
Borough ensures that Borough funds are only deposited in financial institutions in which New Jersey
municipalities are permitted to invest their funds.
Deposits:
New Jersey statutes require that municipalities deposit public funds in public depositories located in New
Jersey which are insured by the Federal Deposit Insurance Corporation, or by any other agency of the
United States that insures deposits made in public depositories. Municipalities are also permitted to
deposit public funds in the State of New Jersey Cash Management Fund.
New Jersey statutes require public depositories to maintain collateral for deposits of public funds that
exceed insurance limits as follows:
The market value of the collateral must equal 5% of the average daily balance of public funds on
deposit, and
In addition to the above collateral requirement, if public funds deposited exceed 75% of the capital
funds of the depository, the depository must provide collateral having a market value at least equal
to 100% of the amount exceeding 75%.
All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or
a banking institution that is a member of the Federal Reserve System and has capital funds of not less
than $25,000,000.
20
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 9:
Cash and Cash Equivalents (Cont’d)
Investments
New Jersey statutes permit the Borough to purchase the following types of securities:
(1) Bonds or other obligations of the United States of America or obligations guaranteed by
the United States of America;
(2) Government money market mutual funds;
(3) Any obligation that a federal agency or a federal instrumentality has issued in accordance
with an act of Congress, which security has a maturity date not greater than 397 days
from the date of purchase, provided that such obligation bears a fixed rate of interest not
dependent on any index or other external factor;
(4)
Bonds or other obligations of the local unit or bonds or other obligations of school
districts of which the local unit is a part or within which the school district is located;
(5)
Bonds or other obligations, having a maturity date not more than 397 days from the date
of purchase, issued by New Jersey school districts, municipalities, counties, and entities
subject to the “Local Authorities Fiscal Control Law” P.L. 1983, c. 313 (C.40A:5A-1 et
seq.) Other bonds or obligations having a maturity date not more than 397 days from the
date of purchase may be approved by the Division of Local Government Services in the
Department of Community Affairs for investment by local units;
(6) Local government investment pools;
(7) Deposits with the State of New Jersey Cash Management Fund established pursuant to
section 1 of P.L. 1977, c.281 (C.52:18A-90.4); or
(8) Agreements for the repurchase of fully collateralized securities if:
(a)
the underlying securities are permitted investments pursuant to paragraphs (1) and
(3) of this subsection a. or are bonds or other obligations, having a maturity date not
more than 397 days from the date of purchase, issued by New Jersey school districts,
municipalities, counties and entities subject to the “Local Authorities Fiscal Control
Law”, P.L. 1983 c.313 (C.40A:5A-1 et seq.);
(b)
the custody of collateral is transferred to a third party;
(c)
the maturity of the agreement is not more than 30 days;
(d)
the underlying securities are purchased through a public depository as defined in
section 1 of P.L. 1970, c.236 (C.17:9-41); and
(e)
a master repurchase agreement providing for the custody and security of collateral
is executed.
21
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 9:
Cash and Cash Equivalents (Cont’d)
Investments
As of December 31, 2019, cash and cash equivalents of the Borough of Rockaway consisted of the
following:
NJ Cash
Change
Checking
Management
Fund
Funds
Acounts
Fund
Total
Current Fund
100.00
$
4,745,881.61
$
2,874.93
$
4,748,856.54
$
Animal Control Trust Fund
28,185.79
28,185.79
Other Trust Funds
1,518,885.65
1,518,885.65
General Capital Fund
3,463,824.88
3,463,824.88
Water Utility Operating Fund
100.00
1,120,701.85
4,330.37
1,125,132.22
Water Utility Capital Fund
2,671,219.73
2,671,219.73
200.00
$
13,548,699.51
$
7,205.30
$
13,556,104.81
$
During the period ended December 31, 2019, the Borough did not hold any investments. The carrying
amount of the Borough's cash and cash equivalents at December 31, 2019, was $13,556,104.81 and the
bank balance was $13,609,487.16. The $7,205.30 invested with the State of New Jersey Cash
Management Fund is uninsured and/or unregistered.
Note 10: 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; injuries to employees; and natural disasters. Health benefits are provided to
employees through the State of New Jersey health benefits plan.
The Borough of Rockaway is a member of the Morris County Municipal Joint Insurance Fund. This fund
is both an insured and self-administered group of municipalities established for the purpose of providing
certain low-cost insurance coverage for member municipalities in order to keep local property taxes at a
minimum.
The following coverages are offered by these funds to its members:
a.)
Workers' Compensation and Employers' Liability
b.)
Liability Other Than Motor Vehicles
c.)
Property Damage Other Than Motor Vehicles
d.)
Motor Vehicle
e.)
Environmental
As a member of this Fund, the Borough could be subject to supplemental assessments in the event of
deficiencies. If the assets of the Funds were to be exhausted, members would become responsible for
their respective shares of the Fund's liabilities.
22
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 10: Risk Management (Cont’d)
This Fund can declare and distribute dividends to members upon approval of the State of New Jersey
Department of Banking and Insurance. These distributions are divided amongst the members in the same
ratio as their individual assessment relates to the total assessment of the membership body. In accordance
with Statement No. 10 of the Governmental Auditing Standards Board, these distributions are used to
reduce the amount recorded for membership expense in the year in which the distribution was declared.
The December 31, 2019 financial statements were not available as of the date of this report. Selected
financial information for the Fund as of December 31, 2018 is as follows:
Morris County
Municipal Joint
Insurance Fund
Total Assets
33,810,987.00
$
Net Position
13,583,877.00
$
Total Revenue
19,078,609.00
$
Total Expenditures
20,655,181.00
$
Change in Net Position
(1,576,572.00)
$
Members Dividends
-0-
$
Financial statements for the Fund are available at the offices of the Fund’s Executive Director:
PERMA Risk Management Services
9 Campus Drive, Suite 216
Parsippany, NJ 07054
(201) 881-7632
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.
On following page is a summary of Borough and employee contributions, interest earned and
reimbursements to the State for benefits paid and the ending balance of the Borough’s trust fund for the
current and previous two years.
23
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 10: Risk Management (Cont’d)
New Jersey Unemployment Compensation Insurance (Cont’d)
Borough
Interest
Employees
Amount
Ending
Year
Contributions
Earned
Contributions
Reimbursed
Balance
2019
15,000.00
$
614.52
$
5,086.05
$
10,873.58
$
83,054.59
$
2018
15,000.00
567.66
4,482.07
12,872.64
73,227.60
2017
15,000.00
102.24
4,858.60
15,758.00
66,050.51
Note 11: Interfund Receivables and Payables
The following interfund balances remain on the balance sheet at December 31, 2019:
Interfund
Interfund
Fund
Receivables
Payables
Current Fund
555.19
$
Animal Control Fund
555.19
$
Water Utility Operating Fund
4,695.99
Water Utility Capital Fund
4,695.99
5,251.18
$
5,251.18
$
The interfund receivable in the Current Fund consists of the statutory excess in the Animal Control Fund
that was not turned over by year-end. The interfund between the Water Utility Operating Fund and the
Water Utility Capital Fund represents accrued interest on notes paid by capital ordinance.
Note 12: Deferred Compensation Plans
The Borough offers its employees deferred compensation plans (the “plans”) created in accordance with
Section 457 of the Internal Revenue Code. The plans, which are administered by AXA Equitable, are
available to all Borough employees and permit participants to defer a portion of their salary. The deferred
compensation is not available to employees until termination, retirement, unforeseeable emergency or
upon death to their beneficiaries.
Note 13: Economic Dependency
The Borough of Rockaway receives a substantial amount of support from federal and state governments.
A significant reduction in the level of support, if this were to occur, may have an effect on the Borough’s
programs and activities.
24
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 14: Contingent Liabilities
The Borough is periodically involved in various lawsuits arising in the normal course of business,
including claims for property damage, personal injury, and various contract disputes. The Borough
vigorously contests all lawsuits and believes the ultimate resolution would not have a material adverse
effect on its financial position.
Amounts received or receivable from grantors, principally the federal and state governments are subject
to regulatory requirements and adjustments by the agencies. Any disallowed claims, including amounts
previously recognized by the Borough as revenue would constitute a liability of the applicable funds. The
amount, if any, of expenditures which may be disallowed by the grantors cannot be determined at this
time, although Borough officials expect such amounts, if any, to be immaterial.
Various tax appeals on assessed valuations have been filed against the Borough and are awaiting tax court
decisions. The ultimate outcome and effect of such appeals have not been determined; however, the
Borough Tax Assessor will aggressively defend-the Borough's assessments. The Borough has established
a reserve in the amount of $650,000.00 which it feels should be sufficient to cover these tax appeals.
Note 15: Fixed Assets
The following is a summarization of general fixed assets for the years ended December 31, 2018 and
2019.
Balance
Balance
12/31/17
Additions
Deletions
12/31/18
Land
9,407,660.00
$
9,407,660.00
$
Buildings and Improvements
4,269,606.00
4,269,606.00
Equipment
6,086,529.52
884,926.78
$
6,971,456.30
19,763,795.52
$
884,926.78
$
-0-
$
20,648,722.30
$
Balance
Balance
12/31/18
Additions
Deletions
12/31/19
Land
9,407,660.00
$
9,407,660.00
$
Buildings and Improvements
4,269,606.00
4,269,606.00
Equipment
6,971,456.30
315,349.92
$
7,286,806.22
20,648,722.30
$
315,349.92
$
-0-
$
20,964,072.22
$
25
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 16: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
State Health Benefit Local Government Retired Employees Plan
General Information about the OPEB Plan
Plan Description
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost sharing multiple
employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It
covers employees of local government employers that have adopted a resolution to participate in the Plan.
The plan meets the definition of an equivalent arrangement as defined in paragraph 4 of GASB Statement
No. 75, Accounting and Financial Reporting for the Postemployment Benefits Other Than Pensions;
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.
Benefits Provided
The Plan provides medical and prescription drug coverage to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L. 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally administered
retirement system and a period of service of up to 25 years with the employer at the time of retirement as
established by the employer; or 4) retired and reached age 62 with at least 15 years of service with the
employer. Further, the law provides that the employer paid obligations for retiree coverage may be
determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A. 52:14-17.32i, the State provides
medical and prescription coverage to local police officers and firefighters, who retire with 25 years of
service or on a disability from an employer who does not provide postretirement medical coverage. Local
employers were required to file a resolution with the Division in order for their employees to qualify for
State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree
health benefits to survivors of local police officers and firefighters who die in the line of duty under
Chapter 271, P.L. 1989.
26
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 16: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Cont’d)
State Health Benefit Local Government Retired Employees Plan (Cont’d)
Contributions
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.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local
police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for
the category of coverage elected by the qualified retiree under the State managed care plan or a health
maintenance organization participating in the program providing the lowest premium or periodic charge.
The State also provides funding for retiree health benefits to survivors of local police officers and
firefighters who die in the line of duty under Chapter 271, P.L. 1989.
Therefore, these employers are considered to be in a special funding situation as defined by GASB
Statement No. 75 and the State is treated as a nonemployer contributing entity. For New Jersey local
governments who report under the regulatory basis of accounting, the net OPEB liability and related
deferred inflows are not recorded in the financial statements and there is only note disclosure of this
information. Since the local participating employers do not contribute under this legislation directly to the
plan, there is no net OPEB liability, deferred outflows of resources, or deferred inflows of resources to
report in the financial statements of the local participating employers related to this legislation. However,
the notes to the financial statements of the local participating employers must disclose the portion of the
nonemployer contributing entities’ total proportionate share of the collective net OPEB liability that is
associated with the local participating employer.
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 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. The nonspecial funding situation’s net
OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are
further allocated to employers based on the ratio of the plan members of an individual employer to the
total members of the Plan’s nonspecial funding situation during the measurement period July 1, 2017
through June 30, 2018. Employer and nonemployer allocation percentages were rounded for presentation
purposes; therefore, amounts presented in the schedule of OPEB amounts by employer and nonemployer
may result in immaterial differences.
27
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 16: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Cont’d)
State Health Benefit Local Government Retired Employees Plan (Cont’d)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
The total OPEB liability as of June 30, 2019 was not available from the State of New Jersey Division of
Pensions and Benefits as of the date of this report. The total OPEB liability as of June 30, 2018 was
determined by an actuarial valuation as of June 30, 2017, which was rolled forward to June 30, 2018.
The State’s proportionate share of the net OPEB liability attributable to the Borough at June 30, 2018 was
$4,810,821. At June 30, 2018, the State’s proportion related to the Borough was .077421%. This is the
percentage of the total State Share of the net OPEB liability of the Plan.
Additionally, during the year ended June 30, 2018, the State of New Jersey’s OPEB expense related to the
Borough was $145,629.
Actuarial Assumptions and Other Inputs
The actuarial assumptions vary for each plan member depending on the pension plan the member is
enrolled in. This actuarial valuation used the following actuarial assumptions, applied to all periods in the
measurement.
Inflation Rate
2.50%
Salary Increases*:
Through 2026
1.65% - 8.98%
Thereafter
2.65% to 9.98%
* - Salary increases are based on the defined benefit plan that the member is enrolled in and his or her age.
Preretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Employee
Male/Female Mortality Table with fully generational mortality improvement projections from the central
year using MP-2017 scale. Postretirement mortality rates were based on the RP-2006 Headcount-Weighted
Health Annuitant Male/Female mortality table with fully generational improvement projections from the
central year using the MP-2017 scale. Disability mortality was based on the RP-2006 Headcount-
Weighted Disabled Male/Female mortality table with fully generational improvement projections from the
central year using the MP-2017 scale.
Certain actuarial assumptions used in the June 30, 2017 valuation were based on the results of the pension
plans’ experience studies for which the members are eligible for coverage under this Plan – the Police and
Firemen Retirement System (PFRS) and the Public Employees’ Retirement System (PERS). The PFRS
and PERS experience studies were prepared for the periods July 1, 2010 to June 30, 2013 and July 1, 2011
– June 30, 2014, respectively.
100% of active members are considered to participate in the Plan upon retirement.
28
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019
(Continued)
Note 16: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Cont’d)
State Health Benefit Local Government Retired Employees Plan (Cont’d)
Health Care Trend Assumptions
For pre-Medicare preferred provider organization (PPO) and health maintenance organization (HMO)
medical benefits, the trend rate initially is 5.8% and decreases to a 5.0% long term trend rate after eight
years. For self-insured post 65 PPO medical benefits and HMO medical benefits, the trend rate is 4.5%.
For prescription drug benefits, the initial trend rate is 8.0% decreasing to a 5.0% long term rate after seven
years. For the Medicare Part B reimbursement, the trend rate is 5.0%. The Medicare Advantage trend
rate is 4.5% and will continue in all future years.
Discount Rate
The discount rate for June 30, 2018 was 3.87%. This represents the municipal bond 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.
Note 17: Subsequent Event
The COVID-19 outbreak in the United States and specifically in New Jersey has caused disruption of the
Borough’s normal financial operations with the municipal office closed to the public and minimal staff
working on site. Though the impact on the Borough’s operations cannot be reasonably estimated at this
date, it is likely that there will be an impact on tax collections as well as other revenue in the Operating
Funds.
29
BOROUGH OF ROCKAWAY
SUPPLEMENTARY DATA
Schedule 1
BOROUGH OF ROCKAWAY
OFFICIALS IN OFFICE AND SURETY BONDS
YEAR ENDED DECEMBER 31, 2019
Amount of
Name
Title
Bond
Russell Greuter
Mayor
Melissa Burnside
Councilwoman
Joyce Kanigel
Councilwoman through 09/30/19
Thomas Mulligan
Councilman
Robert Smith
Councilman
Patrick McDonald
Councilman from 10/24/2019
Thomas Haynes
Councilman
James Hurley
Councilman
Sheila Seifert
Borough Clerk through 06/30/19
(A)
Patricia L. Bussow
Borough Clerk from 07/01/19
(A)
Patricia Reiche
Chief Financial Officer/Treasurer
(A)
Donna Browne
Tax Collector
(A)
Deborah Tanzola
Water Clerk
(A)
All bonds were examined and were properly executed.
(A) All employees are covered under $50,000 and $950,000 Faithful Performance Bonds provided by the Morris County Municipal Joint Insurance Fund
and the Municipal Excess Liability Joint Insurance Fund, respectively.
1
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
CURRENT FUND
A-4
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2018
A
4,671,634.17
$
Increased by Receipts:
Tax Collector
24,320,536.79
$
Revenue Accounts Receivable
881,329.53
Miscellaneous Revenue Not Anticipated
464,818.91
Due Animal Control Trust Fund:
Prior Year Interfund Returned
744.99
Due Water Utility Operating Fund:
Sewer Receipts
739,522.99
Due State of New Jersey:
Marriage License Fees
900.00
DCA Training Fees
7,733.00
Veterans and Senior Citizens' Deductions
39,267.81
Appropriation Refunds
221,160.48
Grants Receivable
117,261.50
26,793,276.00
31,464,910.17
Decreased by Disbursements:
2019 Appropriation Expenditures
8,121,633.08
$
2018 Appropriation Reserves
465,915.60
Local School Taxes
8,805,128.00
Regional High School Taxes
6,752,960.00
County Taxes
2,153,998.93
Due Other Trust Funds:
Prior Year Interfund Returned
156,000.00
Refund of:
Tax Overpayments
5,945.86
Redemption of Third Party Tax Title Liens
75,814.65
Due State of New Jersey:
DCA Training Fees
8,164.00
Marriage License Fees
775.00
Reserve for Pending Tax Appeals
58,043.05
Reserve for Master Plan
4,000.00
Reserve for Sewer Improvements
3,000.00
Appropriated Grant Reserves
73,104.29
Grant Encumbrances
13,643.50
Refund of Prior Year Revenue
100.02
Refund of Prior Year Tax Revenue
922.76
Accounts Payable
17,004.89
26,716,153.63
$
Balance December 31, 2019
A
4,748,756.54
$
A-5
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2019
Increased by Receipts:
Taxes Receivable
23,972,662.02
$
Interest and Costs on Taxes
96,298.51
2020 Prepaid Taxes
169,242.77
Tax Overpayments
5,945.84
Third Party Tax Title Liens
75,814.65
Other Miscellaneous Revenue
573.00
24,320,536.79
$
Decreased by Disbursements:
Paid to Treasurer
24,320,536.79
$
A-6
BOROUGH OF ROCKAWAY
SCHEDULE OF CASH - GRANT FUNDS
YEAR ENDED DECEMBER 31, 2019
NOT APPLICABLE
A-7
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
State of NJ
Veterans' and
Transferred
Balance
Collections
Senior Citizens'
Overpayments
to Tax
Balance
Year
Dec. 31, 2018
2019 Levy
2018
2019
Deductions
Applied
Cancelled
Title Liens
Dec. 31, 2019
2018
286,489.46
$
286,485.87
$
3.59
$
2019
24,315,947.73
$
188,336.55
$
23,686,176.15
39,017.36
$
1,083.88
$
32,306.07
23,021.05
$
346,006.67
$
286,489.46
$
24,315,947.73
$
188,336.55
$
23,972,662.02
$
39,017.36
$
1,083.88
$
32,309.66
$
23,021.05
$
346,006.67
$
Ref.
A
A
Analysis of 2019 Property Tax Levy:
Tax Yield:
General Purpose Tax
24,253,235.07
$
Added and Omitted Taxes
62,712.66
24,315,947.73
$
Tax Levy:
Local School District Taxes
8,539,307.00
$
Regional High School District Taxes
6,752,960.00
County Taxes
2,147,161.22
$
County Added and Omitted Taxes
5,565.17
2,152,726.39
17,444,993.39
Local Tax for Municipal Purposes Levied
6,543,372.00
Minimum Library Tax
269,509.00
Add: Additional Tax Levied
58,073.34
6,870,954.34
24,315,947.73
$
A-7
A-8
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
Ref.
Balance December 31, 2018
A
696,629.26
$
Increased by:
Transfer from Taxes Receivable
23,021.05
Balance December 31, 2019
A
719,650.31
$
A-9
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Accrued In
Collected by
Balance
Dec. 31, 2018
2019
Treasurer
Dec. 31, 2019
Municipal Clerk:
Alcoholic Beverage Licenses
17,050.00
$
17,050.00
$
Fees and Permits
56,990.03
56,990.03
Other Licenses
16,055.00
16,055.00
Construction Code Official:
Fees and Permits
95,053.00
95,053.00
Municipal Court:
Fines and Costs - Township of Parsippany
5,260.36
$
62,762.05
63,784.83
4,237.58
$
Consolidated Municipal
Property Tax Relief Program
13,649.00
13,649.00
Energy Receipts Taxes
533,346.00
533,346.00
Uniform Fire Safety Fees
32,901.67
32,901.67
Morris Hills Regional -
School Resource Officer
52,500.00
52,500.00
5,260.36
$
880,306.75
$
881,329.53
$
4,237.58
$
Ref.
A
A
A-9
A-10
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF SEWER RENTS RECEIVABLE
Ref.
Balance December 31, 2018
A
64,354.46
$
Increased by:
Sewer Rents Levied
738,719.43
$
Sewer Service Fees Levied
1,000.00
Interest on Rents
2,867.36
742,586.79
806,941.25
Decreased by:
Collections in Current Fund:
Sewer Rents
735,655.63
Sewer Service Fees
1,000.00
Interest on Rents
2,867.36
739,522.99
Balance December 31, 2019
A
67,418.26
$
A-11
1 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2019
Balance
Balance After
Paid or
Balance
Dec. 31, 2018
Modification
Charged
Lapsed
GENERAL GOVERNMENT:
Mayor & Council:
Salaries & Wages
34.33
$
34.33
$
34.33
$
Other Expenses
1,086.09
1,086.09
1,086.09
Clerk:
Salaries & Wages
2,633.77
2,633.77
824.48
$
1,809.29
Other Expenses
10,406.18
10,406.18
1,837.11
8,569.07
Financial Administration:
Salaries & Wages
2.33
2.33
2.33
Other Expenses
9,316.44
9,316.44
6,422.26
2,894.18
Audit Fees
23,114.00
23,114.00
23,114.00
Assessment of Taxes:
Salaries & Wages
4,431.98
4,431.98
4,431.98
Other Expenses
554.27
554.27
400.00
154.27
Revenue Administration (Tax Collection):
Salaries & Wages
176.08
176.08
176.08
Other Expenses
3,666.37
3,666.37
1,608.00
2,058.37
Legal Services and Costs:
Other Expenses - Fees
27,904.26
27,904.26
10,396.15
17,508.11
Engineering Services:
Other Expenses
32,644.00
32,644.00
26,817.72
5,826.28
Land Use Board:
Salaries & Wages
546.04
546.04
546.04
Other Expenses
2,430.85
2,430.85
680.00
1,750.85
Zoning Enforcement:
Salaries & Wages
51.00
51.00
51.00
Other Expenses
200.00
200.00
200.00
Insurance:
Employee Group Insurance
120,800.20
120,800.20
25.00
120,775.20
Workers' Compensation
2,854.74
2,854.74
2,854.74
General Liability Insurance
9,728.74
9,728.74
2,509.00
7,219.74
Health Benefit Waiver
1,583.33
1,583.33
1,583.33
PUBLIC SAFETY
Office of Emergency Management:
Salaries & Wages
0.08
0.08
0.08
Other Expenses
1,370.00
1,370.00
1,370.00
Volunteer Fire/Ambulance Department:
Other Expenses
25,597.99
25,597.99
23,322.60
2,275.39
A-11
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2019
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2018
Modification
Charged
Lapsed
PUBLIC SAFETY (Cont'd)
Fire Prevention/Uniform Fire Code:
Salaries & Wages
2,170.74
$
2,170.74
$
2,170.74
$
Other Expenses
1,906.13
1,906.13
1,080.79
$
825.34
Police:
Salaries & Wages
213,769.12
213,769.12
32,720.23
181,048.89
Other Expenses
27,066.67
27,066.67
10,146.09
16,920.58
Alarm System - Police and Fire:
Other Expenses
206.39
206.39
206.39
STREETS AND ROADS:
Road Repairs and Maintenance:
Salaries & Wages
29,292.03
29,292.03
29,250.00
42.03
Other Expenses
98,329.88
98,329.88
98,283.81
46.07
Other Public Works Functions:
Other Expenses
8,409.73
8,409.73
7,806.04
603.69
Shade Tree Commission:
Other Expenses
4,076.00
4,076.00
1,566.57
2,509.43
Sewer:
Other Expenses
10,918.35
10,918.35
10,918.35
Public Building and Grounds:
Other Expenses
15,774.54
15,774.54
6,200.97
9,573.57
Vehicle Maintenance:
Other Expenses
2,132.98
2,132.98
2,083.47
49.51
HEALTH AND WELFARE:
Board of Health:
Salaries & Wages
16.64
16.64
16.64
Other Expenses
1,206.46
1,206.46
725.00
481.46
Senior Citizens' Programs:
Salaries & Wages
1,888.57
1,888.57
1,888.57
Other Expenses
2,101.60
2,101.60
282.31
1,819.29
RECREATION AND EDUCATION:
Recreation Commission:
Salaries & Wages
5,615.14
5,615.14
5,615.14
Other Expenses
15,409.79
15,409.79
10,688.70
4,721.09
Maintenance of Parks
14,220.16
14,220.16
3,035.50
11,184.66
UNIFORM CONSTRUCTION CODE:
Construction Code Official:
Salaries & Wages
68.00
68.00
68.00
Other Expenses
155.31
0.31
0.31
Uniform Construction Code Enforcement:
Other Expenses
165.00
320.00
141.00
179.00
UNCLASSIFIED:
Utilities:
Gas (Natural or Propane)
6,088.65
6,088.65
1,777.99
4,310.66
Street Lighting
3,627.69
3,627.69
3,627.69
Electricity
13,107.77
13,107.77
8,532.04
4,575.73
Gasoline and Diesel
11.26
11.26
11.26
Telephone
2,307.32
2,307.32
269.70
2,037.62
A-11
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2019
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2018
Modification
Charged
Lapsed
UNCLASSIFIED (Cont'd)
Solid Waste Disposal:
Salaries & Wages
3,502.72
$
3,502.72
$
3,502.72
$
Other Expenses
88,137.74
88,137.74
71,679.75
$
16,457.99
Contingent
500.00
500.00
500.00
STATUTORY EXPENDITURES:
Public Employees Retirement System
239.29
239.29
239.29
Contribution to Social Security System (O.A.S.I.)
5,027.08
5,027.08
5,027.08
Aid to Municipal Library
19,367.19
19,367.19
19,367.19
Length of Service Awards Program
14,400.00
14,400.00
6,800.00
7,600.00
Sewage Processing and Disposal
5,444.12
5,444.12
5,444.12
SHARED SERVICE AGREEMENTS:
Morris Hills Regional District - Police:
Salaries & Wages
23,345.12
23,345.12
23,345.12
Parsippany-Troy Hills - Municipal Court
5,000.00
5,000.00
5,000.00
CAPITAL IMPROVEMENTS:
DPW Equipment
10,758.59
10,758.59
2,229.50
8,529.09
Fire Department Equipment
6,865.22
6,865.22
742.21
6,123.01
Recreation Equipment
33,381.81
33,381.81
33,381.81
Sewer Capital Improvements
125,000.00
125,000.00
125,000.00
Buildings and Ground Equipment
35,125.62
35,125.62
4,207.20
30,918.42
1,137,269.49
$
1,137,269.49
$
590,915.60
$
546,353.89
$
Ref.
Balance December 31, 2018
Unencumbered
A
904,430.38
$
Encumbered
A
232,839.11
1,137,269.49
$
Analysis of Paid or Charged
Cash Disbursed
465,915.60
$
Reserve for Sewer Improvements
125,000.00
590,915.60
$
A-12
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
YEAR ENDED DECEMBER 31, 2019
Ref.
Balance December 31, 2018
A
265,821.00
$
Increased by:
Levy - Calendar Year 2019
8,539,307.00
8,805,128.00
Decreased by:
Payments to Local School District
8,805,128.00
Balance December 31, 2019
A
-0-
$
A-13
CURRENT FUND
SCHEDULE OF REGIONAL HIGH SCHOOL DISTRICT TAXES PAYABLE
YEAR ENDED DECEMBER 31, 2019
Increased by:
Levy - Calendar Year 2019
6,752,960.00
$
Decreased by:
Payments to Regional High School District
6,752,960.00
$
A-14
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
Transfer
from
Balance
Revenue
Received in
Unappropriated
Balance
Dec. 31, 2018
Realized
Current Fund
Reserves
Cancelled
Dec. 31, 2019
Recycling Tonnage Grant
10,604.00
$
10,604.00
$
15,856.90
$
572.62
$
4,778.48
Clean Communities
13,524.27
13,524.27
Bulletproof Vest Partnership Grant
3,560.00
1,735.98
5,295.98
Body Armor Replacement
1,864.98
1,864.98
Safe and Secure Communities Grant:
2017
29,407.00
29,407.00
2018
29,407.00
29,407.00
2019
29,407.00
7,351.75
22,055.25
Drive Sober Or Get Pulled Over Grant
5,500.00
5,500.00
Drunk Driving Enforcement Fund
1,479.03
7,713.92
7,713.92
$
1,479.03
Municipal Alliance Grant
2,301.76
11,256.00
3,849.60
301.76
9,406.40
Distracted Driving Grant
5,500.00
5,500.00
5,500.00
5,500.00
Drive Sober or Get Pulled Over Year -
End Crackdown Grant
11,000.00
11,000.00
Highland Coalition - Historic Trolley Trail
Pedestrian Bridge Project
5,000.00
5,000.00
Morris County Historic Preservation Trust Fund Grant:
Fox's Brook Culvert Project
22,400.00
22,400.00
120,658.79
$
87,106.15
$
117,261.50
$
7,713.92
$
17,374.38
$
65,415.14
$
Ref.
A
A
Adopted Budget
70,345.90
$
Added by N.J.S.A. 40A:4-87
16,760.25
87,106.15
$
A-14
A-15
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF UNAPPROPRIATED GRANT RESERVES
Transferred
to 2019
Balance
Budget
Balance
Dec. 31, 2018
Revenue
Dec. 31, 2019
Drunk Driving Enforcement Fund
7,713.92
$
7,713.92
$
7,713.92
$
7,713.92
$
-0-
$
Ref.
A
A
A-16
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF APPROPRIATED GRANT RESERVES
Transferred
from
Prior Year
Balance
2019 Budget
Paid or
Encumbrances
Balance
Dec. 31, 2018
Appropriations
Charged
Cancelled
Canceled
Dec. 31, 2019
Body Armor Grant
4,939.32
$
1,864.98
$
5,240.00
$
1,564.30
$
Clean Communities
13,524.27
9,048.07
4,476.20
Bulletproof Vest
3,560.00
1,735.98
3,560.00
1,735.98
Distracted Driving
5,500.00
5,500.00
5,445.00
5,500.00
$
55.00
Drive Sober or Get Pulled Over
5,500.00
5,500.00
5,500.00
5,500.00
Drive Sober or Get Pulled Over - Year End Crackdown
5,500.00
5,500.00
Drunk Driving Enforcement Fund
17,278.20
7,713.92
3,000.55
21,991.57
Highland Coalition -
Historic Trolley Trail Pedestrian Bridge Project
2,375.00
2,375.00
Highland Committee -
Historic Trolley Trail Pedestrian Bridge Project
1,678.00
1,678.00
Trolley 2018 - Local Match:
3,947.00
3,947.00
65.50
$
65.50
Municipal Alliance:
2018
1,316.16
1,014.40
301.76
2019
11,256.00
8,351.85
2,904.15
Municipal Alliance 2018 - Local Match:
329.03
253.60
75.43
Municipal Alliance 2019 - Local Match:
3,314.00
2,587.96
726.04
Recycling Tonnage
10,604.00
10,604.00
572.62
20,635.38
Safe and Secure Communities:
2018
15.86
15.86
2019
29,407.00
29,407.00
Local Safety Improvement
3,224.08
3,224.08
65,766.65
$
90,420.15
$
81,424.29
$
65.50
$
17,449.81
$
57,378.20
$
Ref.
A
A
Cash Disbursed
73,104.29
$
Encumbrances
8,320.00
81,424.29
$
Federal
14,505.00
$
State
56,077.73
Grants Receivable
17,374.38
$
Local
10,841.56
Fund Balance
75.43
81,424.29
$
17,449.81
$
A-16
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
TRUST FUNDS
B-4
1 of 2
Ref.
Animal Control Fund
Other Trust Funds
Balance December 31, 2018
B
30,407.19
$
1,381,743.71
$
Increased by Receipts:
Due Current Fund:
Interfund
156,000.00
$
License Fees
11,801.80
$
Interest on Investments
252.08
State Registration Fees
885.60
Prepaid Licenses
771.60
Miscellaneous Fees
1,231.00
Tax Sale Premiums
43,000.00
Trust Escrow
81,523.90
Council on Affordable Housing
38,071.48
Addison Hills Escrow
15.06
Parking Offense Adjudication Act
40.00
Unemployment Insurance Deposits
20,700.57
Forfeited Assets
5,149.21
Recycling
5,733.61
Tree Replacement
1,000.00
Public Defender
2,100.00
National Night Out
1,800.00
Fire Prevention
4,925.00
Outside Police Services
486,720.47
Recreation Deposits
19,859.30
Reserve for Storm Recovery
111,275.00
14,942.08
977,913.60
2,359,657.31
BOROUGH OF ROCKAWAY
TRUST FUNDS
SCHEDULE OF CASH AND INVESTMENTS - TREASURER
B-4
1 of 2
B-4
2 of 2
BOROUGH OF ROCKAWAY
TRUST FUNDS
SCHEDULE OF CASH AND INVESTMENTS - TREASURER
Ref.
Animal Control Fund
Other Trust Funds
Decreased by Disbursements:
Due Current Fund:
Interfund - Current
744.99
$
Interest on Investments
252.08
State of New Jersey Board of Health
894.00
Expenditures Under R.S. 4:19-15.11
15,272.41
Tax Sale Premiums
68,200.00
$
Council on Affordable Housing
10,410.00
Unemployment Insurance Expenditures
10,873.58
Shade Tree
288.00
Tree Replacement
750.00
National Night Out
1,129.40
Fire Prevention
2,870.00
Outside Police Services
612,839.21
Forfeited Assets
1,925.89
Recycling
17,334.38
Trust Escrow
78,521.22
Reserve for Deferred Sick Leave
20,265.12
Recreation Expenditures
15,364.86
17,163.48
$
840,771.66
$
Balance December 31, 2019
B
28,185.79
$
1,518,885.65
$
B-4
2 of 2
B-5
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
ANALYSIS OF CASH
YEAR ENDED DECEMBER 31, 2019
NOT APPLICABLE
B-6
BOROUGH OF ROCKAWAY
ANIMAL CONTROL FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
Ref.
Balance December 31, 2018
B
28,721.20
$
Dog and Cat License Fees
11,801.80
$
Prior Year Prepaid Licenses Applied
879.80
Miscellaneous Fees
1,231.00
13,912.60
42,633.80
Decreased by:
Expenditures Under R.S. 4:19-15.11
15,272.41
Statutory Excess Due to Current Fund
555.19
15,827.60
Balance December 31, 2019
B
26,806.20
$
License Fees Collected
Amount
Year
2017
13,542.20
$
2018
13,264.00
Maximum Allowable Reserve
26,806.20
$
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
GENERAL CAPITAL FUND
C-2
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2018
C
3,208,348.73
$
Increased by:
Reserve to Pay Debt Service:
Grant Funds Received on Fully Funded Ordinances:
CDBG - Stone Arch Culvert
5,240.00
$
Premium on Bond Anticipation Notes
7,648.59
Grants Receivable:
Morris County Historic Society Preservation Trust
74,525.00
Community Development Block Grant:
Community Center
79,821.11
Capital Improvement Fund:
2019 Budget Appropriation
55,000.00
Bond Anticipation Note Proceeds
5,559,009.00
Due Current Fund:
Interest
25,274.51
5,806,518.21
9,014,866.94
Decreased by:
Improvement Authorizations
804,674.55
Bond Anticipation Notes
4,721,093.00
Due Current Fund:
Interest
25,274.51
5,551,042.06
Balance December 31, 2019
C
3,463,824.88
$
C-3
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
ANALYSIS OF CASH
Receipts
Disbursements
Balance/
Bond
Bond
Balance/
(Deficit)
Budget
Anticipation
Improvement
Anticipation
Transfers
(Deficit)
Dec. 31, 2018
Miscellaneous
Appropriation
Notes
Authorizations
Notes
Miscellaneous
From
To
Dec. 31, 2019
Capital Fund Balance
114,969.56
$
0.31
$
114,969.87
$
Capital Improvement Fund
85,304.50
55,000.00
$
38,490.00
$
101,814.50
Due from Current Fund
25,274.51
$
25,274.51
$
Community Development Block Grant Receivable:
Community Center
(79,821.11)
79,821.11
Morris County Historic Society Preservation Trust
(116,825.00)
74,525.00
42,300.00
NJ Department of Transportation
(305,000.00)
(305,000.00)
Reserve to Pay Debt Service
147,301.32
12,888.59
147,302.00
12,887.91
Ord. No.
Improvement Description
04-11
Various Capital Improvements
202,616.07
18,173.12
$
184,442.95
12-13
Road Improvements
11,901.29
88,241.00
$
88,241.00
11,901.29
08-14
Maple Avenue Improvement Project
2,689.48
2,689.48
6-15
Various Capital Improvements
1,428.80
1,428.80
12-15
Various Capital Improvements
772,232.99
1,000,376.00
$
3,500.00
1,002,201.00
1,825.00
768,732.99
13-16
Library Exterior Restoration
43,300.31
1,000.00
42,300.31
14-16
Various Capital Improvements
1,132,585.65
2,034,780.00
262,099.75
2,047,383.00
12,603.00
870,485.90
10-17
Various Capital Improvements
115,836.56
787,217.00
114,770.48
823,650.00
36,433.00
1,066.08
06-18
Various Capital Improvements
1,079,828.31
1,290,811.00
360,396.05
759,618.00
8,200.00
1,258,825.26
12-19
Various Capital Improvements
445,825.00
44,735.15
38,490.00
439,579.85
3,208,348.73
$
192,509.21
$
55,000.00
$
5,559,009.00
$
804,674.55
$
4,721,093.00
$
25,274.51
$
228,092.31
$
228,092.31
$
3,463,824.88
$
C-3
C-4
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Notes
Paid by
Paid by
Reserve for
Bond
Unexpended
Ord.
Balance
2019
Budget
Payment of
Balance
Anticipation
Improvement
No.
Dec. 31, 2018
Authorizations
Appropriation
Debt Service
Dec. 31, 2019
Notes
Authorizations
12-13
Road Improvements
212,500.00
$
124,259.00
$
88,241.00
$
12-15
Various Capital Improvements
1,180,805.00
178,604.00
1,825.00
1,000,376.00
$
1,000,376.00
$
14-16
Various Capital Improvements
2,144,520.00
97,137.00
12,603.00
2,034,780.00
2,034,780.00
10-17
Various Capital Improvements
823,650.00
36,433.00
787,217.00
787,217.00
06-18
Various Capital Improvements
1,392,684.00
8,200.00
1,384,484.00
1,290,811.00
93,673.00
$
12-19
Various Capital Improvements
751,300.00
$
751,300.00
445,825.00
305,475.00
5,754,159.00
$
751,300.00
$
400,000.00
$
147,302.00
$
5,958,157.00
$
5,559,009.00
$
399,148.00
$
Ref.
C
C
Improvement Authorizations - Unfunded
3,737,838.08
$
Less: Unexpended Proceeds of Bond Anticipation Notes Issued:
Ordinance 12-15 (Various Capital Improvements)
768,732.99
$
Ordinance 14-16 (Various Capital Improvements)
870,485.90
Ordinance 10-17 (Various Capital Improvements)
1,066.08
Ordinance 06-18 (Various Capital Improvements)
1,258,825.26
Ordinance 12-19 (Various Capital Improvements)
439,579.85
3,338,690.08
399,148.00
$
Improvement Description
Analysis of Balance
December 31, 2019
C-4
C-5
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Deferred
Balance
Capital
Charges to
Improvement
Balance
Ord.
Ordinance
December 31, 2018
Improvement
Future Taxation
Paid or
Authorizations
December 31, 2019
No.
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Unfunded
Charged
Cancelled
Funded
Unfunded
04-11
Various Capital Improvements
05/12/11
1,713,175.00
$
202,616.07
$
18,173.12
$
184,442.95
$
12-13
Road Improvements
07/25/13
400,000.00
11,901.29
$
11,901.29
08-14
Maple Avenue Improvement Project
07/10/14
129,000.00
2,689.48
2,689.48
6-15
Various Capital Improvements
06/11/15
80,000.00
1,428.80
1,428.80
12-15
Various Capital Improvements
08/19/15
1,543,200.00
772,232.99
3,500.00
768,732.99
$
13-16
Library Exterior Restoration
09/08/16
333,385.00
43,300.31
1,000.00
42,300.31
$
14-16
Various Capital Improvements
09/08/16
2,361,600.00
1,132,585.65
262,099.75
870,485.90
10-17
Various Capital Improvements
06/22/17
947,000.00
115,836.56
114,770.48
1,066.08
06-18
Various Capital Improvements
06/28/18
1,761,410.00
320,210.31
1,392,684.00
360,396.05
1,352,498.26
12-19
Various Capital Improvements
07/11/19
789,790.00
38,490.00
$
751,300.00
$
44,735.15
745,054.85
570,244.97
$
3,425,240.49
$
38,490.00
$
751,300.00
$
804,674.55
$
42,300.31
$
200,462.52
$
3,737,838.08
$
Ref.
C
C
C
C
County of Morris Historic Preservation
42,300.00
$
Fund Balance
0.31
42,300.31
$
2019 Authorizations
C-5
C-6
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2018
C
85,304.50
$
Increased by:
Current Fund Budget Appropriation
55,000.00
140,304.50
Decreased by:
Appropriated to Finance Improvement Authorizations
38,490.00
Balance December 31, 2019
C
101,814.50
$
C-7
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES PAYABLE
Date of
Ord.
Original
Interest
Balance
Balance
No.
Improvement Description
Issue
Issue
Maturity
Rate
Dec. 31, 2018
Issued
Matured
Dec. 31, 2019
12-13
Road Improvements
09/22/15
09/13/18
09/13/19
3.00%
212,500.00
$
212,500.00
$
12-15
Various Capital Improvements
09/22/15
09/13/18
09/13/19
3.00%
1,180,805.00
1,180,805.00
09/12/19
09/11/20
1.50%
1,000,376.00
$
1,000,376.00
$
14-16
Various Capital Improvements
11/23/16
09/13/18
09/13/19
3.00%
2,144,520.00
2,144,520.00
09/12/19
09/11/20
1.50%
2,034,780.00
2,034,780.00
10-17
Various Capital Improvements
09/14/17
09/13/18
09/13/19
3.00%
823,650.00
823,650.00
09/12/19
09/11/20
1.50%
787,217.00
787,217.00
06-18
Various Capital Improvements
06/28/18
09/13/18
09/13/19
3.00%
759,618.00
759,618.00
09/12/19
09/11/20
1.50%
1,290,811.00
1,290,811.00
12-19
Various Capital Improvements
07/11/19
09/12/19
09/11/20
1.50%
445,825.00
445,825.00
5,121,093.00
$
5,559,009.00
$
5,121,093.00
$
5,559,009.00
$
Ref.
C
C
Renewed
4,573,791.00
$
4,573,791.00
$
Issued for Cash
985,218.00
Paid by Reserve for Payment of Debt Service
147,302.00
Paid by Budget Appropriation
400,000.00
5,559,009.00
$
5,121,093.00
$
C-7
C-8
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF SERIAL BONDS PAYABLE
Maturities of Bonds
Outstanding
Date of
Original
December 31, 2019
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2018
Matured
Dec. 31, 2019
General Improvement Bonds
08/30/11
3,470,000.00
$
08/15/20
395,000.00
$
4.50%
08/15/21
415,000.00
4.50%
1,185,000.00
$
375,000.00
$
810,000.00
$
1,185,000.00
$
375,000.00
$
810,000.00
$
Ref.
C
C
C-8
C-9
Bond
Notes
Paid by
Bond
Anticipation
Paid by
Reserve for
Anticipation
Ord.
Ord.
Balance
2019
Notes
Budget
Payment of
Notes
Balance
Number
Date
Improvement Description
Dec. 31, 2018
Authorizations
Issued
Appropriation
Debt Service
Redeemed
Dec. 31, 2019
12-13
07/25/13
Road Improvements
124,259.00
$
88,241.00
$
212,500.00
$
12-15
08/19/15
Various Capital Improvements
1,000,376.00
$
178,604.00
1,825.00
1,180,805.00
14-16
09/08/16
Various Capital Improvements
2,034,780.00
97,137.00
12,603.00
2,144,520.00
10-17
06/22/17
Various Capital Improvements
787,217.00
36,433.00
823,650.00
06-18
06/28/18
Various Capital Improvements
633,066.00
$
1,290,811.00
8,200.00
759,618.00
93,673.00
$
12-19
07/11/19
Various Capital Improvements
751,300.00
$
445,825.00
305,475.00
633,066.00
$
751,300.00
$
5,559,009.00
$
400,000.00
$
147,302.00
$
5,121,093.00
$
399,148.00
$
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
C-9
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
WATER UTILITY FUND
D-4
BOROUGH OF ROCKAWAY
WATER UTILITY FUNDS
SCHEDULE OF CASH - TREASURER
Ref.
Operating
Capital
Balance December 31, 2018
D
1,305,433.52
$
2,003,738.27
$
Increased by Receipts:
Water Utility Collector
2,471,480.62
$
Interest on Investments
10,098.35
17,163.27
$
Appropriation Refunds
1,080.00
Note Premium - Reserve to Pay Debt Service
5,099.06
Bond Anticipation Note Payable
1,557,790.00
Private Hydrants
5,775.00
Budget Appropriation:
Capital Improvement Fund
40,000.00
Due Water Utility Operating Fund:
Prior Year Interfund
82,000.00
Reserve to Pay Debt Service
0.48
Due Water Utility Capital Fund - Interest Earned
17,163.27
2,505,597.24
1,702,052.81
3,811,030.76
3,705,791.08
Decreased by Disbursements:
2019 Budget Appropriations
1,546,196.12
2018 Appropriation Reserves
186,071.67
Accounts Payable
12,108.50
Accrued Interest on Notes
60,743.00
Accrued Interest on Bonds
60,356.26
Improvement Authorizations Expenditures
942,736.08
BAN's Paid by Reserve to Pay Debt Service
74,672.00
Due from Water Capital Fund:
Prior Year Interfund
82,000.00
Due Current Fund:
Sewer Receipts
738,522.99
Due Water Utility Operating Fund
17,163.27
2,685,998.54
1,034,571.35
Balance December 31, 2019
D
1,125,032.22
$
2,671,219.73
$
D-4
D-4A
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2019
Increased by Receipts:
Water Rents
1,707,202.28
$
Allocation Fees
3,570.00
Sprinklers
15,481.10
Interest on Delinquent Accounts
6,704.25
Total Consumer Accounts Receivable
1,732,957.63
$
Due Current Fund:
Sewer Rents
735,655.63
Sewer Interest on Delinquents
2,867.36
738,522.99
Decreased by Disbursements:
Paid to Treasurer
2,471,480.62
$
D-5
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
ANALYSIS OF WATER CAPITAL CASH
Receipts
Balance/
Bond
Bond
(Deficit)
Anticipation
Anticipation
Improvement
Transfers
Balance
Dec. 31, 2018
Notes
Misc.
Notes
Authorizations
Misc.
From
To
Dec. 31, 2019
Capital Fund Balance
4,797.60
$
4,797.60
$
Capital Improvement Fund
150,112.04
40,000.00
$
190,112.04
Due Water Utility Operating Fund
(82,000.00)
99,163.27
17,163.27
$
4,695.99
$
4,695.99
Reserve for Capital Improvements
205,063.08
55,000.00
$
150,063.08
Reserve to Pay Debt Service
74,674.60
5,099.54
74,672.00
$
5,102.14
Ord.
No.
Improvement Description
08-09
Various Water Utility Improvements
1,188.18
1,188.18
05-11
Various Water Utility Improvements
37,071.42
34,648.92
$
2,422.50
11-15
Various Water Utility Improvements
85,687.38
32,526.26
53,161.12
15-16
Various Water Utility Improvements
644,637.72
280,298.15
4,695.99
359,643.58
09-17
Various Water Utility Improvements
531,150.00
430,129.00
101,021.00
07-18
Various Water Utility Improvements
351,356.25
826,870.00
$
160,981.00
1,017,245.25
10-19
Acquisition and Installation of Generator
55,000.00
55,000.00
11-19
Various Water Utility Improvements
730,920.00
4,152.75
726,767.25
2,003,738.27
$
1,557,790.00
$
144,262.81
$
74,672.00
$
942,736.08
$
17,163.27
$
59,695.99
$
59,695.99
$
2,671,219.73
$
Disbursements
D-5
D-6
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance
2019
Balance
Dec. 31, 2018
Charges
Collections
Dec. 31, 2019
Water Rents
208,632.98
$
1,712,348.92
$
1,707,202.28
$
213,779.62
$
Miscellaneous
24,826.10
24,826.10
208,632.98
$
1,737,175.02
$
1,732,028.38
$
213,779.62
$
Ref.
D
D
Miscellaneous:
Water Allocation Fees
3,570.00
$
Sprinklers
15,481.10
Hydrants
5,775.00
24,826.10
$
D-7
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Additions By
Balance
Budget
Balance
Dec. 31, 2018
Capital Outlay
Dec. 31, 2019
Fixed Capital Prior to 1970
32,512.50
$
32,512.50
$
Pumping Station Land
2,700.00
2,700.00
Storage System Land
400.00
400.00
Springs and Wells
445,846.92
445,846.92
Pumping Station Structures
22,848.54
22,848.54
Electric Pumping Station Equipment
31,401.51
31,401.51
Storage Reservoirs and tanks
767,359.38
767,359.38
Distribution Mains and Accessories
2,820,197.43
2,820,197.43
Service Pipes and Stops
83,753.92
83,753.92
Fire Hydrants and Cisterns
77,747.86
77,747.86
General Structures
71,837.61
71,837.61
Meters, Meter Boxes and Vaults
343,303.86
343,303.86
Engineering
11,004.96
11,004.96
General Equipment
259,054.64
259,054.64
Shoring Unit
5,961.50
5,961.50
Booster Pump
1,736.67
1,736.67
Pumping Equipment
28,091.31
28,091.31
Water Line and Reservoirs
84,562.63
84,562.63
Sewer Lines
16,651.20
16,651.20
Water Treatment Facility
788,753.37
788,753.37
Altitude Valve
4,000.00
4,000.00
Trucks
51,193.06
51,193.06
Purification Equipment
273,279.87
273,279.87
Loader Replacement
153,601.91
153,601.91
Woodside Transit Pipeline
213,373.95
213,373.95
Water Utility Vehicles
342,996.86
342,996.86
Improvement to Hillside Water Tank
80,000.00
80,000.00
Portable Radios
2,760.00
2,760.00
Hillside Water Tank Replacement
58,000.00
58,000.00
Redevelop/Repair Well 6A
55,104.00
55,104.00
Potable Water Improvements
80,000.00
80,000.00
Land Acquisition
31,515.10
31,515.10
Pressure Valve Replacement
75,410.18
75,410.18
Air Stripper Insulation
9,465.00
9,465.00
Siding and Infrastructure Upgrades
100,000.00
100,000.00
Hydrants and Valves Replacement
48,734.54
$
48,734.54
Computer Equipment
3,922.41
3,922.41
Security Upgrades
10,700.00
10,700.00
Replacement of Water Meters
37,857.00
37,857.00
Well House Repairs
8,200.00
8,200.00
Vehicle Accessories
3,746.55
3,746.55
7,426,425.74
$
113,160.50
$
7,539,586.24
$
D
D
D-8
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
Ord.
Balance
2019
Balance
No.
Improvement Description
Dec. 31, 2018
Authorizations
Dec. 31, 2019
08-09
Various Water Utility Improvements
417,000.00
$
417,000.00
$
05-11
Various Water Utility Improvements
643,241.15
643,241.15
11-15
Various Water Utility Improvements
251,321.00
251,321.00
15-16
Various Water Utility Improvements
694,000.00
694,000.00
09-17
Various Water Utility Improvements
731,255.42
731,255.42
07-18
Various Water Utility Improvements
1,206,470.00
1,206,470.00
10-19
Acquisition and Installation of Generator
55,000.00
$
55,000.00
11-19
Various Water Utility Improvements
1,098,000.00
1,098,000.00
3,943,287.57
$
1,153,000.00
$
5,096,287.57
$
D
D
D-8
D-9
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF 2018 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2019
Balance
Balance
After
Paid or
Balance
Dec. 31, 2018
Modification
Charged
Lapsed
Operating:
Salaries and Wages
8,994.40
$
8,994.40
$
8,994.40
$
Other Expenses
250,425.82
250,425.82
84,024.58
$
166,401.24
Capital Improvements:
Capital Outlay
163,035.35
163,035.35
102,047.09
60,988.26
Deferred Charges/Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Social Security System (OASI)
10,165.42
10,165.42
10,165.42
432,620.99
$
432,620.99
$
186,071.67
$
246,549.32
$
Ref.
Balance December 31, 2018:
Unencumbered
D
359,232.28
$
Encumbered
D
73,388.71
432,620.99
$
D-10
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Reserve
Deferred
for
Charges to
Ord.
Ordinance
Water Capital
Future
Paid or
Balance Dec. 31, 2019
No.
Improvement Description
Date
Amount
Funded
Unfunded
Improvements
Revenue
Charged
Funded
Unfunded
08-09
Various Water Utility Improvements
06/25/2009
477,000.00
$
1,188.18
$
1,188.18
$
05-11
Various Water Utility Improvements
05/12/2011
701,000.00
37,071.42
34,648.92
$
2,422.50
11-15
Various Water Utility Improvements
07/09/2015
300,000.00
85,687.38
$
32,526.26
53,161.12
$
15-16
Various Water Utility Improvements
09/08/2016
774,000.00
644,637.72
284,994.14
359,643.58
09-17
Various Water Utility Improvements
05/10/2017
740,000.00
531,150.00
430,129.00
101,021.00
07-18
Various Water Utility Improvements
06/28/2018
1,206,470.00
1,178,226.25
160,981.00
1,017,245.25
10-19
Acquisition and Installation of Generator
07/11/2019
55,000.00
55,000.00
$
55,000.00
11-19
Various Water Utility Improvements
07/11/2019
1,098,000.00
1,098,000.00
$
4,152.75
1,093,847.25
38,259.60
$
2,439,701.35
$
55,000.00
$
1,098,000.00
$
947,432.07
$
58,610.68
$
2,624,918.20
$
Ref.
D
D
D
D
Cash Disbursed
942,736.08
$
Due to Water Utility Operating Fund
4,695.99
947,432.07
$
Balance Dec. 31, 2018
2019 Authorizations
D-10
D-11
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2018
D
150,112.04
$
Increased by:
2019 Budget Appropriation
40,000.00
Balance December 31, 2019
D
190,112.04
$
D-12
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
Ord.
Date of
Balance
2019
Balance
No.
Improvement Description
Ordinance
Dec. 31, 2018
Authorizations
Dec. 31, 2019
08-09
Various Water Utility Improvements
06/25/2009
58,850.00
$
58,850.00
$
16-10
Various Water Utility Improvements
08/12/2010
2,500.00
2,500.00
05-11
Various Water Utility Improvements
05/12/2011
212,891.15
212,891.15
10-19
Acquisition and Installation of Generator
07/11/2019
55,000.00
$
55,000.00
274,241.15
$
55,000.00
$
329,241.15
$
Ref.
D
D
D-12
D-12A
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
Ref.
Balance December 31, 2018
D
6,883,844.16
$
Increased by:
Budget Appropriations:
Capital Outlay
113,160.50
$
Paid by Operating Budget
26,000.00
Paid by Reserve for Payment of Debt Service
74,672.00
Serial Bonds Paid by Operating Budget
50,000.00
263,832.50
Balance December 31, 2019
D
7,147,676.66
$
D-13
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
Date of
Ord.
Improvement
Original
Date of
Interest
Balance
Balance
No.
Description
Note
Original Note
Issue
Maturity
Rate
Dec. 31, 2018
Issued
Matured
Dec. 31, 2019
11-15
Various Water
300,000.00
$
9/19/2016
09/13/2018
09/13/2019
3.00%
211,158.00
$
211,158.00
$
Improvements
09/12/2019
09/11/2020
1.50%
155,336.00
$
155,336.00
$
15-16
Various Water
694,000.00
11/23/2016
09/13/2018
09/13/2019
3.00%
694,000.00
694,000.00
Improvements
09/12/2019
09/11/2020
1.50%
657,895.00
657,895.00
09-17
Various Water
740,000.00
9/14/2017
09/13/2018
09/13/2019
3.00%
740,000.00
740,000.00
Improvements
09/12/2019
09/11/2020
1.50%
731,255.00
731,255.00
07-18
Various Water
Improvements
379,600.00
9/13/2018
09/13/2018
09/13/2019
3.00%
379,600.00
379,600.00
09/12/2019
09/11/2020
1.50%
1,206,470.00
1,206,470.00
11-19
Various Water
Improvements
730,920.00
09/12/2019
09/12/2019
09/11/2020
1.50%
730,920.00
730,920.00
2,024,758.00
$
3,481,876.00
$
2,024,758.00
$
3,481,876.00
$
Ref.
D
D
Renewed
1,924,086.00
$
1,924,086.00
$
Issued for Cash
1,557,790.00
Paid by Reserve for Payment of Debt Service
74,672.00
Funded by Budget Appropriation
26,000.00
3,481,876.00
$
2,024,758.00
$
D-13
D-14
Maturities of Bonds Outstanding
Date of
Original
December 31, 2019
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2018
Matured
Dec. 31, 2019
Water Utility Bonds of 2011
8/30/11
1,710,000.00
$
8/15/2020
55,000.00
$
4.500%
8/15/2021
55,000.00
4.500%
8/15/2022
60,000.00
4.500%
8/15/2023
60,000.00
5.000%
8/15/2024
65,000.00
5.000%
8/15/2025
65,000.00
3.000%
8/15/2026
70,000.00
3.000%
8/15/2027
70,000.00
5.000%
8/15/2028
75,000.00
5.000%
8/15/2029
80,000.00
5.000%
8/15/2030
85,000.00
4.375%
8/15/2031
85,000.00
4.375%
8/15/2032
90,000.00
4.375%
8/15/2033
95,000.00
4.375%
8/15/2034
100,000.00
4.375%
8/15/2035
100,000.00
4.375%
8/15/2036
100,000.00
4.375%
1,360,000.00
$
50,000.00
$
1,310,000.00
$
1,360,000.00
$
50,000.00
$
1,310,000.00
$
Ref.
D
D
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF WATER CAPITAL SERIAL BONDS
D-14
D-15
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Bond
Notes
Paid by
Bond
2019
Anticipation
Paid by
Reserve for
Anticipation
Ord.
Balance
Improvement
Notes
Budget
Payment of
Notes
Balance
No.
Improvement Description
Dec. 31, 2018
Authorizations
Issued
Appropriation
Debt Service
Redeemed
Dec. 31, 2019
11-15
Various Water Improvements
155,336.00
$
7,143.00
$
48,679.00
$
211,158.00
$
15-16
Various Water Improvements
657,895.00
18,857.00
17,248.00
694,000.00
09-17
Various Water Improvements
731,255.00
8,745.00
740,000.00
07-18
Various Water Improvements
826,870.00
$
1,206,470.00
379,600.00
11-19
Various Water Improvements
1,098,000.00
$
730,920.00
367,080.00
$
826,870.00
$
1,098,000.00
$
3,481,876.00
$
26,000.00
$
74,672.00
$
2,024,758.00
$
367,080.00
$
D-15
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
SEWER UTILITY FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2019
PUBLIC ASSISTANCE FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
PART II
SINGLE AUDIT
YEAR ENDED DECEMBER 31, 2019
Schedule 1
State
Grant
Amount
Federal
Pass Through
Grant
Grant Period
Award
Grant
Amount of
Cumulative
Paid to
Federal Funding Department
Program
CFDA #
Entity ID
Name
From
To
Amount
Receipts
Expenditures
Expenditures
Subrecipients
U.S. Department of Housing and
Urban Development:
(Passed Through County of
Community
14.218
N/A
Replacement of
01/01/17
12/31/19
80,000.00
$
79,821.11
$
79,821.11
$
80,000.00
$
Morris Department of Community
Development
Sidewalks on
Development)
Block Grants
Various Streets
Total Department of Housing and Urban Development
79,821.11
79,821.11
80,000.00
U.S. Department of Transportation
(Passed through New Jersey Department
of Transportation)
Municipal Aid -
Hoagland Ave.
20.205
18-480-078-
N/A
01/01/18
12/31/19
305,000.00
305,000.00
$
305,000.00
6320-AM2-6010
305,000.00
305,000.00
(Passed through New Jersey
Department of Law & Public Safety)
Distracted Driving
20.616
100-066-1160-
113-YHTS-6120
N/A
01/01/19
12/31/19
5,500.00
5,500.00
5,445.00
5,445.00
(Passed through New Jersey
Drive Sober or Get
20.616
100-066-1160-
Department of Law & Public Safety)
Pulled Over
157-031020
N/A
01/01/19
12/31/19
5,500.00
5,500.00
5,500.00
5,500.00
Total Department of Transportation
11,000.00
315,945.00
315,945.00
U.S. Department of Justice:
Office of Justice Program
Bulletproof Vest
Partnership Grant
16.607
N/A
N/A
01/01/18
12/31/19
3,560.00
3,560.00
3,560.00
Total Department of Justice
3,560.00
3,560.00
TOTAL FEDERAL AWARDS
90,821.11
$
399,326.11
$
399,505.00
$
-0-
$
N/A - Not Available/Applicable
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
1
Schedule 2
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
New Jersey
Name of
State Grant
Grant Period
Grant
Amount
Amount of
Cumulative
Agency or Department
Program
Award Number
From
To
Award
Received
Expenditures
Expenditures
Department of Treasury:
Passed through the County of Morris:
Morris: Governor's Council on
Municipal Alliance to Prevent
100-082-2000-
Alcoholism and Drug Abuse
Alcoholism and Drug Abuse
044-995120
07/01/18
06/30/19
11,256.00
$
2,000.00
$
4,864.00
$
10,954.24
$
07/01/19
06/30/20
11,256.00
1,849.60
8,351.85
8,351.85
Subtotal - Department of Treasury
3,849.60
13,215.85
19,306.09
Department of Environmental
Clean Communities Act
765-042-4900-
Protection
004-V42Y-6020
01/01/18
12/31/19
12,117.71
1,025.00
12,117.71
01/01/19
12/31/20
13,524.27
13,524.27
8,728.07
8,728.07
13,524.27
9,753.07
20,845.78
Recycling Grant
752-042-4900-
001-V42Y-6020
01/01/18
12/31/18
10,604.00
10,031.38
01/01/19
12/31/20
10,604.00
5,825.52
Radon Test Program
100-042-4900
047-017200
01/01/18
12/31/18
675.00
675.00
675.00
*
675.00
Subtotal - Department of Environmental Protection
30,056.17
10,428.07
21,520.78
Department of Law and Public
Body Armor Replacement
1020-718-066-
Safety
Fund
1020-001-6120
01/01/15
12/31/19
3,428.90
1,640.24
3,428.90
01/01/16
12/31/19
1,705.18
1,705.18
1,705.18
01/01/17
12/31/19
1,593.90
1,593.90
1,593.90
01/01/18
12/31/20
1,864.98
1,864.98
300.68
300.68
1,864.98
5,240.00
7,028.66
Drunk Driving
100-078-6400-
Enforcement Fund
260-YYYY
01/01/13
12/31/19
16,569.69
3,000.55
11,724.55
01/01/18
12/31/20
7,713.92
Safe and Secure
100-066-1020-
01/01/17
12/31/18
29,407.00
29,407.00
29,398.97
Communities
232-YCJF
01/01/18
12/31/19
29,407.00
29,407.00
15.86
29,407.00
01/01/19
12/31/20
29,407.00
7,351.75
29,407.00
29,407.00
Subtotal - Department of Law and Public Safety
68,030.73
37,663.41
106,966.18
TOTAL STATE AWARDS
101,936.50
$
61,307.33
$
147,793.05
$
* - Expended in prior years.
SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
2
BOROUGH OF ROCKAWAY
NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED DECEMBER 31, 2019
Note 1.
BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal and state awards (the “Schedules”) include the
federal and state grant activity of the Borough of Rockaway under programs of the federal and state
governments for the year ended December 31, 2019. The information in these schedules is presented in
accordance with the requirements of 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's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants,
State Grants and State Aid. Because the schedules present only a selected portion of the operations of
the Borough, they are not intended to and do not present the financial position, changes in fund balance
or cash flows of the Borough.
Note 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the accompanying schedules of expenditures of federal and state awards are
reported on the cash basis of accounting. Such expenditures are recognized following the cost principles
contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments
or credits made in the normal course of business to amounts reported as expenditures in prior years.
Pass-through identifying numbers are presented where available. The Borough has elected not to use
the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3.
RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal
and state financial reports.
3
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 Auditors' Report
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Rockaway, New Jersey
We have audited, in accordance with auditing standards generally accepted in the United States of America, audit
requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State
of New Jersey (the “Division”), and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements – regulatory basis - of
the various funds of the Borough of Rockaway, in the County of Morris (the "Borough") as of and for the year
ended December 31, 2019 and 2018, and the related notes to the financial statements and have issued our report
thereon dated May 13, 2020. These financial statements have been prepared in accordance with accounting practices
prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of
accounting, and the budget laws of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough’s internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the Borough’s internal control. Accordingly, we do not express an opinion on the
effectiveness of the Borough’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the Borough’s financial statements
will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to
be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying
Schedule of Findings and Responses as Finding 2019-001, that we consider to be a significant deficiency.
4
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
The Borough’s Response to the Finding
The Borough’s response to the finding identified in our audit is described in the accompanying Schedule of Findings
and Responses. The Borough’s response was not subjected to the auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
result 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 in considering the Borough’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Mount Arlington, New Jersey
May 13, 2020
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
5
Kathryn L. Mantell
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2019
Summary of Auditors' Results:
-
The Independent Auditors’ Report expresses a qualified opinion on the Borough's financial statements,
prepared in accordance with accounting practices prescribed or permitted by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey to demonstrate compliance
with the Division's regulatory basis of accounting and the budget laws of New Jersey, as the general fixed
assets account group was not audited.
-
A significant deficiency disclosed during the audit of the financial statements is reported in the Independent
Auditors’ 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.
No material weaknesses are reported.
-
No instances of noncompliance material to the financial statements of the Borough which would be required
to be reported in accordance with Government Auditing Standards, were disclosed during the audit.
-
The Borough was not subject to the single audit provisions of the Uniform Guidance and New Jersey’s OMB
Circular 15-08 for the year ended December 31, 2019 as both state and federal grant expenditures were less
than the single audit thresholds of $750,000 identified in the Uniform Guidance and NJOMB 15-08.
Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally
Accepted Government Auditing Standards:
-
The audit disclosed the following significant deficiency required to be reported under Generally Accepted
Government Auditing Standards:
Finding 2019-001
Segregation of Duties
Criteria
Concentration of duties and responsibilities in a limited number of individuals is not desirable from
a control point of view.
Condition
The Borough does not maintain an adequate segregation of duties with respect to the recording and
treasury functions.
The various departments/offices of the Borough are responsible for the issuance of permits and
licenses; collections of taxes and permit and license fees; and recording of collections. Also, the
reconciliation of bank accounts, the preparation of the general ledger including recording cash
receipts and disbursements for the various funds are performed by one person with limited oversight
review.
6
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2019
(Continued)
Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally
Accepted Government Auditing Standards: (Cont’d)
-
The audit disclosed the following significant deficiency required to be reported under Generally Accepted
Government Auditing Standards: (Cont’d)
Finding 2019-001 (Cont’d)
Segregation of Duties (Cont’d)
Cause
This is due, in part, to the limited number of personnel of the Borough and the decentralized nature
of governmental collection procedures.
Effect or Potential Effect
Segregation of duties refers to separating those functions that place too much control over a
transaction or class of transactions that would enable a person to perpetuate errors and prevent
detection within a reasonable period of time.
Recommendation
It is recommended that an adequate segregation of duties be maintained with respect to the
recording and treasury functions.
Management’s Response
The finding was evaluated, however, due to budgetary constraints, no resolution can be made at this
time.
Findings and Questioned Costs for Federal Awards:
- Not Applicable since Federal expenditures were below the single audit threshold.
Findings and Questioned Costs for State Awards:
- Not Applicable since State expenditures were below the single audit threshold.
7
BOROUGH OF ROCKAWAY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2019
The Borough’s prior year audit finding 2018-001 regarding segregation of duties has not been resolved due to
budgetary constraints and is included as finding 2019-001.
8
BOROUGH OF ROCKAWAY
PART III
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2019
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4
N.J.S. 40A:11-3 states:
a. " When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a
contract year the total sum of $17,500, the contract may be awarded by a purchasing agent when so authorized by
ordinance or resolution, as appropriate to the contracting unit, of the governing body of the contracting unit without
public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or
resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. If the
purchasing agent is qualified pursuant to subsection b. of section 9 of P.L. 1971, c.198 (C.40A:11-9), the governing
body of the contracting unit may establish that the bid threshold may be up to $25,000. Such authorization may be
granted for each contract or by a general delegation of the power to negotiate and award such contracts pursuant to
this section.
b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, except that
contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of section 5 of
P.L. 1971, c.198 (C.40A: 11-5) may be awarded for a period not exceeding 12 consecutive months. The Division
of Local Government Services shall adopt and promulgate rules and regulations concerning the methods of
accounting for all contracts that do not coincide with the contracting unit’s fiscal year.
c. The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of every fifth
year beginning in the fifth year after the year in which P.L. 1999 c.440 takes effect, adjust the threshold amount and
the higher threshold amount which the governing body is permitted to establish, as set forth in subsection a. of this
section, or the threshold amount resulting from any adjustment under this subsection, in direct proportion to the rise
or fall of the index rate as that term is defined in section 2 of P.L.1971, c.198 (C.40A11-2), and shall round the
adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing
body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made.”
N.J.S. 40A: 11-4 states: “Every contract awarded by the contracting agent for the provision or performance of any
goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded only by resolution
of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and
bidding therefore, except as is provided otherwise in this act or specifically by any other law. The governing body
of a contracting unit may, by resolution approved by a majority of the governing body and subject to subsections b.
and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder,
if the governing body finds that it has had prior negative experience with the bidder.”
Effective July 1, 2015 and thereafter, the threshold in accordance with N.J.S.A.40A:11-3 IS $17,500, and with a
qualified purchasing agent the threshold may be up to $40,000.
The governing body of the Borough of Rockaway has the responsibility of determining whether the expenditures
in any category will exceed the bid threshold within the fiscal year and where question arises as to whether any
contract or agreement might result in violation of the statute, the Borough Attorney's opinion should be sought
before a commitment is made.
9
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4 (Cont’d)
The minutes indicated that bids were requested by public advertising per N.J.S. 40A:11-4. The minutes also
indicated that resolutions were adopted authorizing the awarding of contracts or agreements for "Professional
Services," per N.J.S. 40A:11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation
could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut
violations existed. None were noted.
Collection of Interest on Delinquent Taxes and Assessments
The statute provides the method for authorizing interest and the maximum rate to be charged for the nonpayment
of taxes or assessments on or before the date when they would become delinquent.
On January 3, 2019, the governing body adopted the following resolution authorizing interest to be charged on
delinquent taxes and utility charges:
BE IT RESOLVED by the Mayor and Council of the Borough of Rockaway, Morris County, New Jersey,
that the rate of interest to be charged on delinquent taxes and utility charges in this Borough shall be as
follows:
On all delinquents to and including December 31, 2019, at the rate or rates heretofore governing, and
on all delinquents on and after January 1, 2019 at the rate of 8% per annum for and upon the first
$1,500 of the delinquency, the rate of 18% per annum for and upon any amount of the delinquency
in excess of $1,500; and the rate of 6% per annum for and upon any amount in excess of $10,000;
and that a grace period of 10 days will be allowed on taxes due February 1, May 1, August 1, and
November 1. If taxes are not paid by the 10th, interest shall be charged from the due date.
BE IT RESOLVED, that the collector of the Borough be and hereby directed to collect interest on all taxes
accordingly.
It appears from an examination of the Collector’s records that interest was collected in accordance with the
foregoing resolution.
Delinquent Taxes and Tax Title Liens
The following comparison is made of the number of tax title liens receivable on December 31, of the last three
years:
Year
Tax Title Liens
2019
13
2018
13
2017
14
It is essential to good management that all means provided by statute be utilized to liquidate tax title liens in order
to get such properties back on a taxpaying basis.
10
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Verification of Delinquent Taxes and Other Charges
A test verification of delinquent charges and current payments was made in accordance with the regulations of the
Division of Local Government Services, consisting of verification notices as follows:
Type
Number Mailed
Payment of 2019 and 2020 Taxes
20
Delinquent Taxes
15
Tax Title Liens
5
Payment of 2019 Water Rents
10
Delinquent Water Rents
3
For items not returned, alternative procedures were performed, as appropriate.
New Jersey Administrative Code Accounting Requirements
The Division of Local Government Services has established three (3) accounting requirements which are prescribed
in the New Jersey Administrative Code. They are as follows:
1.
Maintenance of an encumbrance accounting system.
2.
Fixed assets accounting and reporting system.
3.
General ledger accounting system.
The Borough is in compliance with these requirements.
Segregation of Duties
The Borough does not maintain an adequate segregation of duties with respect to the recording and treasury
functions. Segregation of duties refers to separating those functions that place too much control over a transaction
or class of transactions that would enable a person to perpetuate errors and prevent detection within a reasonable
period of time. The various departments/offices of the Borough are responsible for the issuance of permits and
licenses; collection of taxes, and permit and license fees; and recording of these collections. Also the deposit and
recording of receipts for the various funds, the reconciliation of the bank accounts, and the preparation of the general
ledger are all performed by the Chief Financial Officer. The disbursement of funds and the preparation of payroll
are performed by the Finance Clerk, however; the Chief Financial Officer currently oversees and is partially
involved in these duties. This is due, in part, to the limited number of personnel of the Borough and the decentralized
nature of governmental collection procedures. Accordingly, management and the Borough Committee should be
aware of this situation and realize that the concentration of duties and responsibilities in a limited number of
individuals is not desirable from a control point of view.
Management’s Response
The finding was evaluated, however due to budgetary constraints no resolution can be made at this time.
11
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Interfunds
An interfund balance still exists among the Current, Water Utility and Other Trust Funds. However, interfunds are
liquidated and monitored on a regular basis. Therefore, a formal recommendation is not judged to be necessary.
Police Outside Duty Receivable
During our review of the Police Outside Duty trust account activity it was noted that there is currently a Police
Outside Duty receivable on the Other Trust Funds balance sheet due to a delay in cash receipts due from outside
vendors. As controls and procedures currently in place are functioning effectively, no formal recommendation is
deemed necessary.
Municipal Court
The report of the Municipal Court has been forwarded to the Division of Local Government Services and the
Borough’s Magistrate under separate cover. Reflected below is a summary of receipts and disbursements for the
year ended December 31, 2019.
RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019
Balance
Balance
Dec. 31, 2018
Receipts
Disbursements
Dec. 31, 2019
Municipal Treasurer:
Fines and Fees
5,260.36
$
62,762.05
$
63,784.83
$
4,237.58
$
Parking Offense Adjudication Act
4.00
36.00
40.00
Interest:
Regular Account
43.89
191.44
235.33
Bail Account
27.22
27.22
Municipal Treasurer - Shared Court:
Public Defender
2,185.00
2,100.00
85.00
State Treasurer
3,293.14
41,670.72
41,605.00
3,358.86
County Treasurer
2,195.50
24,298.51
24,466.51
2,027.50
Weights and Measures
11,450.00
7,950.00
3,500.00
Restitution
1,000.00
1,000.00
Conditional Dismissal
225.00
225.00
Conditional Discharge
530.00
385.00
145.00
Bail Account
1,250.00
8,325.00
7,825.00
1,750.00
12,046.89
$
152,700.94
$
149,643.89
$
15,103.94
$
12
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Management Suggestions
Grants Receivable
During our review of federal and state grants, we noted that there are still a few grants receivable several years old.
It is suggested that the federal and state grants receivable continue to be reviewed to identify those grants which
will be collected and disbursed and which grants should be canceled.
Status of Prior Year Recommendations
The Borough has initiated a corrective action plan to resolve comments and recommendations from the 2018 audit
report. The recommendation regarding segregation of duties is included as current year recommendation as no
resolution can be made at this time due to budgetary constraints.
13
BOROUGH OF ROCKAWAY
SUMMARY OF RECOMMENDATIONS
It is recommended that:
1. An adequate segregation of duties be maintained with respect to the recording and treasury functions.
14
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