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2021 Report of Audit
BID #: N/A
ISSUED: 3/25/2022
DUE: TBD
VALUE: TBD
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Executive Summary
The Borough of Rockaway's 2021 audit report, conducted by Nisivoccia LLP, presents the municipality's financial position and operations for the fiscal year ending December 31, 2021. The audit includes financial statements for various funds, including the Current Fund, Trust Funds, General Capital Fund, and Water Utility Fund, prepared on a regulatory basis as prescribed by the New Jersey Division of Local Government Services. The report also covers supplementary data such as schedules of cash, receivables, payables, and reserves. The report indicates a statutory net debt of .656%. Key issues identified within the report include a significant deficiency in the segregation of duties and a necessity to prioritize getting tax title liens back on a taxpaying basis. GASB 87, Leases, takes effect for year end 2022.
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Document Text
--- Document: 2021 Report of Audit Document ---
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2021
NISIVOCCIA LLP
CERTIFIED PUBLIC ACCOUNTANTS
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2021
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2021
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 2020 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 (Not Applicable)
A-15
Schedule of Appropriated Grant Reserves
A-16
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2021
(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 2020 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
2-3
Notes to the Schedule of Expenditures of Federal and State Awards
4
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
5-6
Schedule of Findings and Responses
Summary Schedule of Prior Audit Findings
7-8
9
PART III – Comments and Recommendations
Page
Comments and Recommendations
Summary of Recommendations
10-14
15
BOROUGH OF ROCKAWAY
PART I
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
YEAR ENDED DECEMBER 31, 2021
Independent Auditors' Report
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Rockaway, New Jersey
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements – regulatory basis - of the various funds and account group of the Borough
of Rockaway, in the County of Morris (the "Borough") as of and for the years ended December 31, 2021 and 2020,
and the related notes to the financial statements, as listed in the table of contents.
Unmodified Opinions on Regulatory Basis of Accounting
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the
financial position of each fund and account group of the Borough as of December 31, 2021 and 2020, and the results
of operations and changes in fund balance, where applicable, of such funds and account group, thereof for the years
then ended in accordance with the accounting practices prescribed or permitted, as described in Note 1, by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”).
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S.
Generally Accepted Accounting Principles section of our report, the accompanying 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, 2021 and 2020,
or the changes in financial position or where applicable, cash flows thereof for the years then ended.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America
(GAAS), 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. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the Borough, and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. 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 of the financial statements, the financial statements are prepared by the Borough on the basis
of the financial reporting provisions prescribed or permitted by the Division, which is a basis of accounting other
than accounting principles generally accepted in the United State of America, to meet the requirements of the
Division’s regulatory basis of accounting and the budget laws of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting described in
Note 1 and accounting principles generally accepted in the United States of America, although not reasonably
determinable, are presumed to be material and pervasive.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
the financial reporting provisions of the Division of Local Government Services, Department of Community
Affairs, State of New Jersey (the “Division”) to demonstrate compliance with the Division's regulatory basis of
accounting, and the budget laws of New Jersey. Management is also responsible for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
•
Exercise professional judgment and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
•
Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Borough’s ability to continue as a going concern for a reasonable period of
time.
2
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 3
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements of the various funds and
account group that collectively comprise the Township’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. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the various
fund and account group financial statements. The information has been subjected to the auditing procedures applied
in the audit of the various fund and account group 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 and account group financial statements or to the various fund and account group 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 various fund and account group
financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2022 on our
consideration of the Borough’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’s internal control over financial reporting and
compliance.
Mount Arlington, New Jersey
March 25, 2022
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
3
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
CURRENT FUND
A
1 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
Ref.
2021
2020
ASSETS
Regular Fund:
Cash and Cash Equivalents:
Treasurer
A-4
6,295,869.84
$
5,567,905.92
$
Change Fund
100.00
100.00
6,295,969.84
5,568,005.92
Receivables and Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-7
201,982.08
185,205.03
Sewer Rents Receivable
A-10
72,714.77
60,934.71
Tax Title Liens Receivable
A-8
1,140,183.50
998,424.58
Property Acquired for Taxes at Assessed Valuation
961,500.00
961,500.00
Revenue Accounts Receivable
A-9
1,566.53
2,344.82
Due from General Capital Fund
C
85,000.00
Grants Receivable
A-14
89,676.41
65,591.66
Total Receivables and Other Assets With Full Reserves
2,467,623.29
2,359,000.80
TOTAL ASSETS
8,763,593.13
$
7,927,006.72
$
A
2 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
December 31,
Ref.
2021
2020
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Appropriation Reserves:
Encumbered
A-3;A-11
269,517.61
$
196,176.97
$
Unencumbered
A-3;A-11
822,723.10
1,145,843.91
1,092,240.71
1,342,020.88
Accounts Payable - Vendors
17,408.73
10,730.11
Regional School Taxes Payable
A-13
2.00
Local School Taxes Payable
A-12
308,285.00
County Added and Omitted Taxes Payable
3,880.51
1,988.82
Due to State of New Jersey:
Senior Citizens' and Veterans' Deductions
11,731.28
10,762.10
Marriage License Fees
125.00
250.00
Construction Code Surcharge Fees
566.00
1,149.00
Prepaid Taxes
219,306.51
207,960.18
Due to Other Trust Funds
B
186,458.39
Reserve for Appropriated Grants:
Encumbered
A-16
112,106.00
Unencumbered
A-16
326,588.00
76,889.52
Reserve for:
Revaluation of Real Property
2,160.00
2,160.00
Master Plan
16,500.00
16,500.00
Sale of Municipal Assets
514,311.00
514,311.00
Pending Tax Appeals
650,000.00
650,000.00
Sewer Improvements
605,218.49
389,157.80
Third Party Tax Title Liens
31,140.91
3,758,600.62
3,563,307.32
Reserve for Receivables and Other Assets
A
2,467,623.29
2,359,000.80
Fund Balance
A-1
2,537,369.22
2,004,698.60
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
8,763,593.13
$
7,927,006.72
$
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.
2021
2020
Revenue and Other Income Realized
Fund Balance Utilized
775,000.00
$
775,000.00
$
Miscellaneous Revenue Anticipated
2,111,703.78
1,731,283.68
Receipts from:
Delinquent Taxes
185,201.32
238,969.35
Current Taxes
24,972,995.34
24,502,020.79
Nonbudget Revenue
286,046.60
169,972.97
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
695,013.77
504,693.51
Interfund Returned
85,000.00
555.19
Total Income
29,110,960.81
27,922,495.49
Expenditures
Budget and Emergency Appropriations:
Municipal Purposes
9,572,588.06
9,173,708.18
Local School District Taxes
9,285,367.00
9,155,878.00
County Taxes
2,220,575.87
2,148,686.04
County Share of Added Taxes
3,880.51
1,988.82
Regional School District Taxes
6,696,794.00
6,542,544.00
Increase in Grants Receivable
24,084.75
176.52
Interfund Advanced
85,000.00
Total Expenditures
27,803,290.19
27,107,981.56
Excess in Revenue/Statutory Excess to Fund Balance
1,307,670.62
814,513.93
Fund Balance
Balance January 1
2,004,698.60
1,965,184.67
3,312,369.22
2,779,698.60
Decreased by:
Utilized as Anticipated Revenue
775,000.00
775,000.00
Balance December 31
A
2,537,369.22
$
2,004,698.60
$
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, 2021
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Fund Balance Anticipated
775,000.00
$
775,000.00
$
Miscellaneous Revenue:
Alcoholic Beverage Licenses
17,000.00
17,050.00
50.00
$
Other Licenses
15,000.00
15,030.00
30.00
Fees and Permits
50,000.00
83,016.17
33,016.17
Municipal Court - Fines and Costs
30,000.00
36,396.47
6,396.47
Interest and Costs on Taxes
75,000.00
57,473.31
17,526.69
*
Energy Receipts Tax (P.L. 1998, Chapters 162 & 167)
545,995.00
546,995.00
1,000.00
Uniform Construction Code Fees
80,000.00
104,833.75
24,833.75
Shared Service Agreement:
Morris Hills Regional School Resource Officer
62,500.00
62,500.00
Uniform Fire Safety Fees
15,000.00
27,753.09
12,753.09
Sewer User Fees
650,000.00
741,183.93
91,183.93
Click It or Ticket
6,000.00
$
6,000.00
Recycling Tonnage Grant
5,825.52
2,809.54
8,635.06
Clean Communities
11,500.00
1,478.96
12,978.96
Body Armor Replacement
1,482.12
1,482.12
Safe and Secure Communities Grant
15,880.00
15,880.00
Drive Sober Or Get Pulled Over Grant
6,000.00
6,000.00
Municipal Alliance Grant
3,400.00
2,000.00
5,400.00
Body-Worn Cameras Grant
34,646.00
34,646.00
American Rescue Plan Grant
328,449.92
328,449.92
Total Miscellaneous Revenues
1,577,100.52
382,866.54
2,111,703.78
151,736.72
A-2
1 of 3
A-2
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Receipts from Delinquent Taxes
265,000.00
$
185,201.32
$
79,798.68
$
*
Amount to be Raised by Taxes for Support of Municipal Budget:
Local Tax for Municipal Purposes
6,795,480.96
6,989,237.92
193,756.96
Minimum Library Tax
282,140.04
282,140.04
7,077,621.00
7,271,377.96
193,756.96
Budget Totals
9,694,721.52
382,866.54
$
10,343,283.06
265,695.00
$
Nonbudget Revenue
286,046.60
9,694,721.52
$
382,866.54
$
10,629,329.66
$
A-2
2 of 3
A-2
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2021
(continued)
Allocation of Current Tax Collections:
Revenue from Collection of Current Taxes
24,972,995.34
$
Allocated to:
Local School District Taxes
9,285,367.00
$
Regional High School Taxes
6,696,794.00
County Taxes
2,224,456.38
18,206,617.38
Balance for Support of Municipal Budget
6,766,377.96
Add: Appropriation "Reserve for Uncollected Taxes"
505,000.00
Realized for Support of Municipal Budget
7,271,377.96
$
Analysis of Nonbudget Revenue:
Treasurer:
Cable Television Franchise Fees
93,344.10
$
Prior Year Police Outside Duty Administrative Fees
79,932.84
Hotel Tax
16,457.61
NJ Senior Citizens & Veterans Deductions - Admin. Fee
774.52
Construction Code Penalties
2,600.00
Interest on Investments
39,460.48
Tax Sale Premium Forfeited to Borough
6,500.00
DPW Vehicles Scrapped
3,000.00
Cancellation of Stale Checks
1,239.54
FEMA Reimbursements - Tropical Storm Isaias
27,013.93
Prior Year Refunds
2,395.58
Other Miscellaneous
12,257.20
284,975.80
$
Tax Collector - Other Miscellaneous Revenue
1,070.80
286,046.60
$
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, 2021
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
GENERAL GOVERNMENT:
Mayor & Council:
Salaries & Wages
28,900.00
$
28,900.00
$
28,900.00
$
Other Expenses
1,800.00
2,300.00
2,026.85
273.15
$
Municipal Clerk:
Salaries & Wages
67,100.00
67,100.00
50,061.89
17,038.11
Other Expenses
53,335.00
51,335.00
50,736.40
598.60
Financial Administration:
Salaries & Wages
123,900.00
123,900.00
122,695.60
1,204.40
Other Expenses
21,500.00
20,129.31
11,727.76
8,401.55
Audit
26,000.00
26,000.00
1,550.00
24,450.00
Tax Assessment Administration:
Salaries & Wages
20,810.00
20,810.00
20,808.00
2.00
Other Expenses
5,400.00
5,400.00
3,615.89
1,784.11
Revenue Administration (Tax Collection):
Salaries & Wages
65,400.00
71,000.00
71,000.00
Other Expenses
12,350.00
8,350.00
5,760.74
2,589.26
Legal Services and Costs:
Other Expenses
121,700.00
121,700.00
104,237.66
17,462.34
Engineering Services:
Other Expenses
40,000.00
70,000.00
63,944.52
6,055.48
LAND USE ADMINISTRATION:
Municipal Land Use Law (N.J.S.A. 40A:55D-1):
Land Use Board:
Salaries & Wages
24,000.00
24,000.00
23,980.56
19.44
Other Expenses
18,700.00
18,700.00
17,157.08
1,542.92
Zoning Commission:
Salaries & Wages
17,035.00
17,035.00
16,972.81
62.19
Other Expenses
2,200.00
2,200.00
2,060.00
140.00
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, 2021
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
GENERAL GOVERNMENT (continued):
Insurance:
Employee Group Insurance
587,300.00
$
487,200.00
$
351,974.24
$
135,225.76
$
Workers' Compensation
61,160.00
61,160.00
60,390.63
769.37
General Liability Insurance
119,781.00
103,881.00
103,304.02
576.98
Health Benefit Waiver
15,000.00
11,000.00
10,833.34
166.66
Unemployment Insurance
7,500.00
7,500.00
7,500.00
PUBLIC SAFETY:
Volunteer Fire/Ambulance:
Other Expenses
88,700.00
88,700.00
62,912.84
25,787.16
Uniform Fire Safety Act (P.L. 1983, Ch. 383):
Fire Prevention Bureau:
Salaries & Wages
48,200.00
48,200.00
48,200.00
Other Expenses
5,900.00
5,900.00
3,322.62
2,577.38
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
2,203,185.00
2,165,185.00
2,098,871.99
66,313.01
Other Expenses
149,200.00
149,200.00
112,421.90
36,778.10
Alarm System - Police and Fire:
Other Expenses
134,800.00
134,800.00
134,793.61
6.39
PUBLIC WORKS:
Road Repair and Maintenance:
Salaries & Wages
355,177.00
355,177.00
341,225.17
13,951.83
Other Expenses
179,000.00
158,000.00
129,113.94
28,886.06
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, 2021
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
PUBLIC WORKS: (Continued)
Other Public Works:
Other Expenses
6,000.00
$
6,000.00
$
6,000.00
$
Shade Tree Commission:
Other Expenses
15,000.00
15,000.00
14,994.82
5.18
$
Solid Waste Disposal:
Salaries & Wages
37,900.00
37,900.00
36,831.71
1,068.29
Other Expenses
622,500.00
597,500.00
582,051.91
15,448.09
Sewer:
Salaries & Wages
120,900.00
120,900.00
120,900.00
Other Expenses
37,600.00
37,600.00
31,750.00
5,850.00
Public Building and Grounds:
Other Expenses
93,500.00
313,643.59
305,090.63
8,552.96
Vehicle Maintenance:
Other Expenses
56,700.00
56,700.00
54,126.66
2,573.34
HEALTH AND WELFARE:
Board of Health:
Salaries & Wages
3,150.00
3,150.00
3,150.00
Other Expenses
145,261.00
145,261.00
139,290.70
5,970.30
Senior Citizens' Programs:
Salaries & Wages
6,435.00
6,435.00
697.36
5,737.64
Other Expenses
5,000.00
RECREATION AND EDUCATION:
Board of Recreation Commissioners:
Salaries & Wages
60,200.00
40,800.00
40,799.98
0.02
Other Expenses
47,800.00
42,650.00
22,568.68
20,081.32
Maintenance of Parks:
Other Expenses
38,400.00
30,900.00
27,286.00
3,614.00
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, 2021
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
UNIFORM CONSTRUCTION CODE:
Uniform Construction Code Enforcement:
Salaries & Wages
27,700.00
$
27,700.00
$
27,496.54
$
203.46
$
Other Expenses
2,100.00
2,100.00
1,783.65
316.35
Construction Code Official:
Salaries & Wages
40,000.00
40,000.00
39,927.60
72.40
Other Expenses
4,500.00
4,500.00
2,402.24
2,097.76
UNCLASSIFIED:
Utilities:
Gasoline and Diesel
30,000.00
30,000.00
28,811.46
1,188.54
Electricity
47,000.00
47,000.00
33,439.44
13,560.56
Natural Gas
17,000.00
17,000.00
11,824.35
5,175.65
Street Lighting
74,000.00
74,000.00
72,828.22
1,171.78
Telephone
28,000.00
28,000.00
18,864.32
9,135.68
Celebration of Public Events:
Other Expenses
14,200.00
11,200.00
11,085.00
115.00
Salary Adjustments
20,000.00
20,000.00
11,685.00
8,315.00
Total Operations Within "CAPS"
6,213,679.00
6,218,501.90
5,715,586.25
502,915.65
Contingent
500.00
500.00
500.00
Total Operations including Contingent within "CAPS"
6,214,179.00
6,219,001.90
5,715,586.25
503,415.65
Detail:
Salaries & Wages
3,274,992.00
3,223,192.00
3,097,519.13
105,672.87
Other Expenses
2,939,187.00
2,995,809.90
2,618,067.12
397,742.78
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, 2021
(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
171,889.00
$
166,889.00
$
158,934.24
$
7,954.76
$
Contribution to Social Security System (O.A.S.I.)
130,000.00
130,000.00
116,720.65
13,279.35
Police and Fireman's Retirement System of NJ
528,183.00
528,183.00
528,183.00
Defined Contribution Retirement Plan
10,000.00
10,000.00
9,134.12
865.88
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
840,072.00
835,072.00
812,972.01
22,099.99
Total General Appropriations for Municipal Purposes Within "CAPS"
7,054,251.00
7,054,073.90
6,528,558.26
525,515.64
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)
282,140.00
282,140.00
266,232.66
15,907.34
Sewerage Processing and Disposal (RVRSA)
258,000.00
258,000.00
174,259.25
83,740.75
SHARED SERVICE AGREEMENTS:
Township of Parsippany-Troy Hills - Municipal Court
85,000.00
85,000.00
79,592.00
5,408.00
Morris Hills Regional High School District - Resource Officers:
Police:
Salaries & Wages
62,500.00
62,500.00
61,830.96
669.04
STATE AND FEDERAL PROGRAMS OFFSET BY REVENUES:
Clean Communities Grant (N.J.S.A 40A:4-87, + $1,478.96)
11,500.00
12,978.96
12,978.96
Municipal Alliance Grant (N.J.S.A 40A:4-87, + $2,000.00)
3,400.00
5,400.00
5,400.00
Municipal Alliance Grant - Local Match
850.00
850.00
850.00
Click It or Ticket Grant (N.J.S.A 40A:4-87, + $6,000.00)
6,000.00
6,000.00
Drive Sober or Get Pulled Over Grant (N.J.S.A 40A:4-87, + $6,000.00)
6,000.00
6,000.00
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, 2021
(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
15,880.00
$
15,880.00
$
15,880.00
$
Body Armor Grant (N.J.S.A. 40A:4-87, + $1,482.12):
1,482.12
1,482.12
Body-Worn Cameras Grant (N.J.S.A. 40A:4-87, + $34,646.00)
34,646.00
34,646.00
Recycling Tonnage Grant (N.J.S.A. 40A:4-87, + $2,809.54):
5,825.52
8,635.06
8,635.06
American Rescue Plan (N.J.S.A. 40A:4-87, + $328,449.92)
328,449.92
328,449.92
Total Operations Excluded from "CAPS"
745,095.52
1,127,962.06
1,002,236.93
125,725.13
$
Detail:
Salaries & Wages
78,380.00
78,380.00
77,710.96
669.04
Other Expenses
666,715.52
1,049,582.06
924,525.97
125,056.09
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, 2021
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS":
Capital Improvement Fund
258,000.00
$
258,000.00
$
258,000.00
$
DPW Equipment
9,000.00
9,000.00
9,000.00
$
Fire Equipment
13,400.00
13,400.00
4,825.92
8,574.08
Police Equipment
19,000.00
19,000.00
14,492.75
4,507.25
Park Maintenance Capital Improvements
20,000.00
20,000.00
6,400.00
13,600.00
Sewer Capital Improvements
125,000.00
125,000.00
125,000.00
John Street Improvement
40,000.00
40,000.00
29,199.00
10,801.00
Total Capital Improvements - Excluded from "CAPS"
484,400.00
484,400.00
312,917.67
171,482.33
MUNCIPAL DEBT SERVICE - EXCLUDED FROM "CAPS":
Payment of Bond Principal
760,000.00
760,000.00
760,000.00
Interest on Bonds
125,000.00
125,178.05
125,178.05
Interest on Notes
20,975.00
20,974.05
20,974.05
Total Municipal Debt Service - Excluded from "CAPS"
905,975.00
906,152.10
906,152.10
Total General Appropriations - Excluded from "CAPS"
2,135,470.52
2,518,514.16
2,221,306.70
297,207.46
Subtotal General Appropriations
9,189,721.52
9,572,588.06
8,749,864.96
822,723.10
Reserve for Uncollected Taxes
505,000.00
505,000.00
505,000.00
Total General Appropriations
9,694,721.52
$
10,077,588.06
$
9,254,864.96
$
822,723.10
$
- 0 -
$
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, 2021
(Continued)
Ref.
Analysis of
Budget After
Paid or
Modification
Charged
Adopted Budget
9,694,721.52
$
Added by N.J.S.A. 40A:4-87
382,866.54
10,077,588.06
$
Reserve for Uncollected Taxes
505,000.00
$
Reserve for Encumbrances
A
269,517.61
Reserve for Sewer Improvements
167,939.38
Transferred to Federal and State Grant Appropriated
420,322.06
Cash Disbursed
8,095,991.63
9,458,770.68
Less: Appropriation Refunds
203,905.72
9,254,864.96
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
TRUST FUNDS
B
1 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
Ref.
2021
2020
ASSETS
Animal Control Fund:
Cash and Cash Equivalents:
Cash - Treasurer
B-4
22,385.23
$
24,342.00
$
22,385.23
24,342.00
Other Trust Funds:
Cash and Cash Equivalents
B-4
1,408,732.24
1,542,416.36
Due from Current Fund
A
186,458.39
1,595,190.63
1,542,416.36
TOTAL ASSETS
1,617,575.86
$
1,566,758.36
$
LIABILITIES, RESERVES AND FUND BALANCE
Animal Control Fund:
Due to State of New Jersey:
Board of Health
39.00
$
55.20
$
Prepaid Animal Licenses
638.00
783.80
Reserve for Animal Control Expenditures
B-6
21,708.23
23,503.00
22,385.23
24,342.00
December 31,
B
2 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
(Continued)
Ref.
2021
2020
LIABILITIES, RESERVES AND FUND BALANCE (Cont'd)
Other Trust Funds:
Reserve for:
Tax Sale Premiums
30,400.00
$
150,900.00
$
Council on Affordable Housing
121,092.70
169,893.65
State Unemployment Insurance
126,617.67
109,456.90
Deferred Sick Leave
225,793.66
198,734.12
Trust Escrow
162,983.12
121,818.91
Addison Hills Escrow
9,564.89
9,561.24
Forfeited Assets
29,847.12
29,855.21
Recycling
28,851.02
25,541.36
Tree Replacement
11,409.12
11,409.12
Parking Offenses Adjudication Act
2,059.26
2,707.26
Public Defender
17,713.46
16,798.46
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
Police Donations
5,195.00
4,945.00
National Night Out
4,233.60
2,338.90
Fire Prevention
15,985.17
16,026.75
Police Outside Duty
110,243.51
77,147.56
Recreation
105,854.23
64,582.10
Storm Recovery
583,998.58
527,351.30
1,595,190.63
1,542,416.36
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
1,617,575.86
$
1,566,758.36
$
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, 2021
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, 2021
NOT APPLICABLE
B-3
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2021
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
GENERAL CAPITAL FUND
C
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
Ref.
2021
2020
ASSETS
Cash and Cash Equivalents
C-2
2,624,308.96
$
3,010,427.44
$
Grant Receivable - County of Morris:
Community Development Block Grant
80,000.00
Grant Receivable - NJ Department of Transportation
456,262.56
454,654.65
Deferred Charges to Future Taxation:
Funded
5,045,000.00
415,000.00
Unfunded
C-4
468,227.00
6,502,622.00
TOTAL ASSETS
8,593,798.52
$
10,462,704.09
$
LIABILITIES, RESERVES AND FUND BALANCE
Bond Anticipation Notes Payable
C-7
468,227.00
$
5,720,199.00
$
Serial Bonds Payable
C-8
5,045,000.00
415,000.00
Improvement Authorizations:
Funded
C-5
1,974,356.01
453,180.94
Unfunded
C-5
468,227.00
3,546,364.26
Due to Current Fund
A
85,000.00
Capital Improvement Fund
C-6
334,320.50
115,064.50
Reserve to Pay Debt Service
12,925.52
Fund Balance
C-1
303,668.01
114,969.87
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
8,593,798.52
$
10,462,704.09
$
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, 2020
C
114,969.87
$
Increased by:
Grant Funds Received on Fully Funded Ordinances:
NJ Department of Transportation - Elycroft Ave.
46,896.72
$
CDBG - Stone Arch Culvert
128,875.90
Reserve to Pay Debt Service Cancelled
12,925.52
188,698.14
Balance December 31, 2021
C
303,668.01
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
WATER UTILITY FUND
D
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31
Ref.
2021
2020
ASSETS
Operating Fund:
Cash and Cash Equivalents:
Treasurer
D-4
943,963.14
$
1,005,511.89
$
Change Fund
100.00
100.00
944,063.14
1,005,611.89
Due from Water Utility Capital Fund
D
2,500.00
946,563.14
1,005,611.89
Receivables and Other Assets with Full Reserves:
Consumer Accounts Receivable
D-6
292,065.81
195,454.76
Total Operating Fund
1,238,628.95
1,201,066.65
Capital Fund:
Cash and Cash Equivalents
D-4
2,584,701.68
2,982,158.34
Due From County of Morris:
Community Development Block Grant Receivable
80,000.00
Fixed Capital
D-7
8,526,995.83
7,813,935.08
Fixed Capital Authorized and Uncompleted
D-8
5,093,046.42
6,726,287.57
Total Capital Fund
16,284,743.93
17,522,380.99
TOTAL ASSETS
17,523,372.88
$
18,723,447.64
$
D
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
December 31
Ref.
2021
2020
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Appropriation Reserves:
Unencumbered
D-3; D-9
155,261.69
$
454,577.82
$
Encumbered
D-3; D-9
190,175.59
110,842.97
345,437.28
565,420.79
Accounts Payable
69,070.03
12,262.75
Accrued Interest on Notes
12,695.75
Accrued Interest on Bonds
61,205.92
20,767.97
475,713.23
611,147.26
Reserve for Receivables
D
292,065.81
195,454.76
Fund Balance
D-1
470,849.91
394,464.63
Total Operating Fund
1,238,628.95
1,201,066.65
Capital Fund:
Serial Bonds Payable
D-14
4,635,000.00
1,255,000.00
Bond Anticipation Notes Payable
D-13
4,117,540.00
Improvement Authorizations:
Funded
D-10
2,224,710.38
47,853.87
Unfunded
D-10
3,806,813.17
Capital Improvement Fund
D-11
270,112.04
230,112.04
Due to Water Utility Operating Fund
D
2,500.00
Reserve to Pay Debt Service
12,518.58
Reserve for Water Capital Improvements
150,063.08
150,063.08
Deferred Reserve for Amortization
D-12
329,241.15
Reserve for Amortization
D-12A
8,985,042.25
7,568,441.50
Fund Balance
D-1A
17,316.18
4,797.60
Total Capital Fund
16,284,743.93
17,522,380.99
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
17,523,372.88
$
18,723,447.64
$
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.
2021
2020
Revenue and Other Income Realized
Fund Balance Utilized
203,500.00
$
464,000.00
$
Water Rents
2,011,443.13
1,634,916.79
Miscellaneous
51,923.41
54,743.40
Nonbudget Revenue
24,660.17
32,900.04
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
353,794.73
235,829.20
Total Income
2,645,321.44
2,422,389.43
Expenditures
Budget Expenditures:
Operating
1,685,000.00
1,610,655.65
Capital Improvements
240,000.00
214,000.00
Debt Service
351,936.16
252,212.28
Deferred Charges and Statutory Expenditures
88,500.00
79,085.00
Total Expenditures
2,365,436.16
2,155,952.93
Excess in Revenue
279,885.28
266,436.50
Fund Balance
Balance January 1
D
394,464.63
592,028.13
674,349.91
858,464.63
Decreased by:
Utilized by Water Utility Operating Budget
203,500.00
464,000.00
Balance December 31
D
470,849.91
$
394,464.63
$
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, 2020
D
4,797.60
$
Increased by:
Reserve for Payment of Debt Service Cancelled
12,518.58
Balance December 31, 2021
D
17,316.18
$
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, 2021
Excess
Anticipated
Realized
or Deficit*
Fund Balance Anticipated
203,500.00
$
203,500.00
$
Rents
2,112,500.00
2,011,443.13
101,056.87
$
*
Miscellaneous Revenue Anticipated
50,000.00
51,923.41
1,923.41
2,366,000.00
2,266,866.54
99,133.46
*
Nonbudget Revenue
24,660.17
24,660.17
2,366,000.00
$
2,291,526.71
$
74,473.29
$
*
Miscellaneous Revenue Anticipated:
Treasurer:
Water Allocation Fees
5,834.00
$
Miscellaneous
3,766.00
9,600.00
$
Collector:
Water Allocation Fees
3,666.00
Sprinklers
15,332.41
Hydrants
23,325.00
42,323.41
51,923.41
$
Nonbudget Revenue:
Collector:
Interest and Penalties
9,718.31
$
Treasurer:
Interest on Investments
14,939.86
$
Miscellaneous
2.00
14,941.86
24,660.17
$
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, 2021
Appropriation
Expended by
Budget
Unexpended
After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
Operating:
Salaries and Wages
603,200.00
$
603,200.00
$
577,444.08
$
25,755.92
$
Other Expenses
1,081,800.00
1,081,800.00
958,794.48
123,005.52
Capital Improvements:
Capital Improvement Fund
40,000.00
240,000.00
240,000.00
Capital Outlay
200,000.00
Debt Service:
Payment of Bonds
210,000.00
210,000.00
210,000.00
Payment of Bond Interest
140,000.00
140,000.00
139,534.26
465.74
$
Interest on Notes
2,500.00
2,500.00
2,401.90
98.10
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
31,000.00
31,000.00
29,980.00
1,020.00
Unemployment Insurance
7,500.00
7,500.00
7,500.00
Social Security System (O.A.S.I.)
50,000.00
50,000.00
44,519.75
5,480.25
2,366,000.00
$
2,366,000.00
$
2,210,174.47
$
155,261.69
$
563.84
$
Ref.
D
Cash Disbursed
1,899,610.44
$
Accrued Interest on Bonds
139,534.26
Accrued Interest on Notes
2,401.90
Encumbrances Payable
D
190,175.59
2,231,722.19
Less: Appropriation Refunds
21,547.72
2,210,174.47
$
THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
D-3
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
SEWER UTILITY FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
PUBLIC ASSISTANCE FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
BOND AND INTEREST FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
GENERAL FIXED ASSETS ACCOUNT GROUP
H
BOROUGH OF ROCKAWAY
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
2021
2020
ASSETS
Land
9,407,660.00
$
9,407,660.00
$
Buildings
4,269,606.00
4,269,606.00
Equipment and Vehicles
7,891,047.27
7,712,802.54
TOTAL ASSETS
21,568,313.27
$
21,390,068.54
$
RESERVES
Investment in Fixed Assets
21,568,313.27
$
21,390,068.54
$
TOTAL RESERVES
21,568,313.27
$
21,390,068.54
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
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, 2021
(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, 2021
(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, 2021
(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.
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.
4
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 2:
Long-Term Debt (Cont’d)
Summary of Municipal Debt
2021
2020
2019
Issued
General:
Bonds and Notes
5,513,227.00
$
6,135,199.00
$
6,369,009.00
$
Water Utility:
Bonds and Notes
4,635,000.00
5,372,540.00
4,791,876.00
10,148,227.00
11,507,739.00
11,160,885.00
Authorized but not Issued:
General:
Bonds and Notes
782,423.00
399,148.00
Water Utility:
Bonds and Notes
1,270,000.00
367,080.00
Total Authorized but not Issued
2,052,423.00
766,228
Less:
General:
Reserve to Pay Debt Service
12,925.52
12,887.91
Water Utility:
Reserve to Pay Debt Service
12,518.58
5,102.14
25,444.10
17,990.05
Net Bonds and Notes Issued and
Authorized but not Issued
10,148,227.00
$
13,534,717.90
$
11,909,122.95
$
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 .656%.
Gross Debt
Deductions
Net Debt
Local School Debt
10,395,000.00
$
10,395,000.00
$
Regional School Debt
1,627,423.50
1,627,423.50
Water Utility Debt
4,635,000.00
4,635,000.00
General Debt
5,513,227.00
5,513,227.00
$
22,170,650.50
$
16,657,423.50
$
5,513,227.00
$
Net Debt: $5,513,227.00 divided by Average Equalized Valuations of $841,043,057 of Real Property =
0.656%.
5
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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
29,436,507.00
$
Net Debt
5,513,227.00
Remaining Borrowing Power
23,923,280.00
$
Calculation of "Self-Liquidating Purpose", Water Utility Per N.J.S.40A:2-45
Cash Receipts from Fees, Rents or Other Charges for Year
2,291,526.71
$
Deductions:
Operating and Maintenance Cost
1,773,500.00
$
Debt Service
351,936.16
2,125,436.16
Excess in Revenue
166,090.55
$
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 Revised Annual Debt Statement filed by the Chief Financial Officer.
Summary of Municipal Debt Issued and Outstanding - Current Year
Balance
Balance
Fund
12/31/2020
Additions
Retirements
12/31/2021
Serial Bonds:
General Capital Fund
415,000.00
$
5,390,000.00
$
760,000.00
$
5,045,000.00
$
Water Utility Capital Fund
1,255,000.00
4,790,000.00
1,410,000.00
4,635,000.00
Bond Anticipation Notes:
General Capital Fund
5,720,199.00
468,227.00
5,720,199.00
468,227.00
Water Utility Capital Fund
4,117,540.00
4,117,540.00
11,507,739.00
$
10,648,227.00
$
12,007,739.00
$
10,148,227.00
$
Summary of Municipal Debt Issued and Outstanding - Prior Year
Balance
Balance
Fund
12/31/2019
Additions
Retirements
12/31/2020
Serial Bonds:
General Capital Fund
810,000.00
$
395,000.00
$
415,000.00
$
Water Utility Capital Fund
1,310,000.00
55,000.00
1,255,000.00
Bond Anticipation Notes:
General Capital Fund
5,559,009.00
5,720,199.00
$
5,559,009.00
5,720,199.00
Water Utility Capital Fund
3,481,876.00
4,117,540.00
3,481,876.00
4,117,540.00
11,160,885.00
$
9,837,739.00
$
9,490,885.00
$
11,507,739.00
$
6
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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 2021
8/1/2034
3.00%-5.00%
5,045,000.00
$
General Capital - Bond Anticipation Notes Payable
Purpose
Final Maturity
Rate
Amount
Various Capital Improvements
10/26/2022
0.60%
468,227.00
$
Water Utility Serial Bonds
Purpose
Final Maturity
Rate
Amount
Water Utility Refunding Bonds of 2021
2/1/2036
0.29%-2.44%
1,250,000.00
$
Water Utility Bonds of 2021
8/1/2040
3.00%-5.00%
3,385,000.00
4,635,000.00
$
Total Debt Issued and Outstanding
10,148,227.00
$
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
2022
295,000.00
$
216,800.00
$
200,000.00
$
146,777.00
$
858,577.00
$
2023
310,000.00
205,000.00
200,000.00
141,708.68
856,708.68
2024
320,000.00
192,600.00
210,000.00
136,329.16
858,929.16
2025
335,000.00
179,800.00
210,000.00
130,597.38
855,397.38
2026
345,000.00
166,400.00
220,000.00
124,526.40
855,926.40
2027-2031
2,000,000.00
573,000.00
1,225,000.00
500,907.75
4,298,907.75
2032-2036
1,440,000.00
101,800.00
1,450,000.00
262,284.15
3,254,084.15
2037-2040
920,000.00
70,050.00
990,050.00
5,045,000.00
$
1,635,400.00
$
4,635,000.00
$
1,513,180.52
$
12,828,580.52
$
General
Water Utility
7
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 3:
Fund Balances Appropriated
Fund balances at December 31, 2021 which were included in the introduced budget as appropriated and
as anticipated revenue for the year ending December 31, 2022 budget were as follows:
Current Fund
550,000.00
$
Water Utility Operating Fund
250,000.00
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,
2021, 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 annual
financial statements which can be found at www.state.nj.us/treasury/pensions/annual-reports.shtml.
8
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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.
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 will be paid
by the employer in level annual payments over a period of 15 years, beginning 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 $199,869 for 2021.
The employee contribution rate was 7.50% effective July 1, 2018.
9
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Pension Liabilities and Pension Expense
At June 30, 2020, the Borough’s liability was $2,979,410 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019 which
was rolled forward to June 30, 2020. 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, 2020, the Borough's
proportion was 0.0182%, which was an increase of 0.0002% from its proportion measured as of June 30,
2019. The Borough has rolled forward the net pension liability as of June 30, 2020 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 and counties to include the June 30, 2020 information in the Notes to the
Financial Statements as the June 30, 2021 information has not been released as of the date of this audit.
For the year ended December 31, 2021, the Borough recognized actual pension expense in the amount of
$199,869.
Actuarial Assumptions
The total pension liability for the June 30, 2020 measurement date was determined by an actuarial
valuation as of July 1, 2019 which was rolled forward to June 30, 2020. This actuarial valuation used the
following actuarial assumptions:
Inflation Rate
Price
2.75%
Wage
3.25%
Salary Increases:
Through 2026
2.00 – 6.00% based on years of service
Thereafter
3.00 – 7.00% based on years of service
Investment Rate of Return
7.00%
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee
Mortality Table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were
based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%
adjustment for males and a 99.7% adjustment for females, and with future improvement from the base
year of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were
based on the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males
and 117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2020.
10
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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, 2019 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 to June 30, 2018.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments
(7.00% at June 30, 2020) 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, 2020 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
7.71%
Non-U.S. Developed Market Equity
13.50%
8.57%
Emerging Markets Equity
5.50%
10.23%
Private Equity
13.00%
11.42%
Real Assets
3.00%
9.73%
Real Estate
8.00%
9.56%
High Yield
2.00%
5.95%
Private Credit
8.00%
7.59%
Investment Grade Credit
8.00%
2.67%
Cash Equivalents
4.00%
0.50%
U.S. Treasuries
5.00%
1.94%
Risk Management Strategies
3.00%
3.40%
11
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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 7.00% as of June 30, 2020. The
projection of cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions from employers
and the nonemployer contributing entity will be based upon 78% of the actuarially determined
contributions for the State employer and 100% of actuarially determined contributions for the local
employers. Based on those assumptions, the plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on plan investments was applied to all projected benefit payments to determine 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, 2020 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, 2020
1%
Current
1%
Decrease
Discount Rate
Increase
(6.00%)
(7.00%)
(8.00%)
Borough's proportionate share
of the Net Pension Liability
3,742,272
$
2,979,410
$
2,319,901
$
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, 2021
(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 annual
financial statements which can be found at www.state.nj.us/treasury/pensions/annual-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 by employer, for the reduced normal and accrued liability
contributions provided under this law. This unfunded liability will be paid by the employer in level annual
amounts over a period of 15 years, beginning with the payments due in the fiscal year ended June 30,
2012 and will be 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, 2021
(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 are 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.
Borough contributions to PFRS amounted to $528,183 for the year ended December 31, 2021. During
the fiscal year ended June 30, 2020, the State of New Jersey contributed $72,955 to the PFRS for normal
pension benefits on behalf of the Borough, which is less than the contractually required contribution of
$107,447.
The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Pension Liabilities and Pension Expense
At June 30, 2020, the Borough’s liability for its proportionate share of the net pension liability was
$6,109,022. The net pension liability was measured as of June 30, 2020, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019
which was rolled forward to June 30, 2020. 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, 2020, the
Borough's proportion was 0.047%, which was a decrease of 0.001% from its proportion measured as of
June 30, 2019. The Borough has rolled forward the net pension liability as of June 30, 2020 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 and counties to include the June 30, 2020 information in the Notes to
the Financial Statements as the June 30, 2021 information has not been released as of the date of this
audit.
14
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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
$948,092 as of June 30, 2020. The net pension liability was measured as of June 30, 2020, and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2019 which was rolled forward to June 30, 2020. 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, 2020, the State's proportion was 0.047%, which was a decrease of
0.001% from its proportion measured as of June 30, 2019 which is the same proportion as the Borough’s.
Borough's Proportionate Share of the Net Pension Liability
6,109,022
$
State's Proportionate Share of the Net Pension Liability Associated
with the Borough
948,092
Total Net Pension Liability
7,057,114
$
For the year ended December 31, 2021, the Borough recognized total pension expense of $528,183.
Actuarial Assumptions
The total pension liability for the June 30, 2020 measurement date was determined by an actuarial
valuation as of July 1, 2019 which was rolled forward to June 30, 2020. This actuarial valuation used the
following actuarial assumptions:
Inflation Rate:
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25% - 15.25% based on years of service
Investment Rate of Return
7.00%
Pre-retirement mortality rates were based on the RP-2010 Safety Employee Mortality Table with a
105.6% adjustment for males and 102.5% adjustment for females, and with future improvement from the
base year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010
Safety Retiree Below-Median Income Weighted Retiree mortality table with a 96.7% adjustment for
males and a 96.0% adjustment for females, and with future improvement from the base year of 2010 on
a generational basis. For beneficiaries (contingent annuitants), the Pub-2010 General Retiree Below-
Median Income Weighted mortality table was used, unadjusted, and with future improvement from the
base year of 2010 on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled
Retiree mortality table with a 152.0% adjustment for males and 109.3% adjustment for females, and with
future improvement from the base year of 2010 on a generational basis. Mortality improvement is based
on Scale MP-2020.
15
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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, 2019 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 to June 30, 2018.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments
(7.00% at June 30, 2020) 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, 2020 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
7.71%
Non-U.S. Developed Market Equity
13.50%
8.57%
Emerging Markets Equity
5.50%
10.23%
Private Equity
13.00%
11.42%
Real Assets
3.00%
9.73%
Real Estate
8.00%
9.56%
High Yield
2.00%
5.95%
Private Credit
8.00%
7.59%
Investment Grade Credit
8.00%
2.67%
Cash Equivalents
4.00%
0.50%
U.S. Treasuries
5.00%
1.94%
Risk Management Strategies
3.00%
3.40%
16
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(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 7.00% as of June 30, 2020. The
projection of cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions from employers
and the nonemployer contributing entity will be based upon 78% of the actuarially determined
contributions for the State employer and 100% of actuarially determined contributions for the local
employers. Based on those assumptions, the plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on plan investments was applied to all projected benefit payments to determine 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, 2020 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, 2020
1%
Current
1%
Decrease
Discount Rate
Increase
(6.00%)
(7.00%)
(8.00%)
Borough's proportionate share of the NPL and the
State's proportionate share of the Net Pension
Liability associated with the Borough
9,384,508
$
7,057,114
$
5,124,034
$
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, 2021
(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 $9,134.12 for the year ended December 31, 2021.
Employee contributions to DCRP amounted to $12,404.28 for the year ended December 31, 2021.
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 $209,747.94 at December 31, 2021. 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 $225,793.66 for Deferred Sick Leave on the Trust Fund balance sheet at December
31, 2021.
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, 2021
(Continued)
Note 8:
Selected Tax Information (Cont’d)
2021
2020
2019
Tax Rate
3.20
$
3.15
$
3.09
$
Apportionment of Tax Rate
Municipal
0.90
0.89
0.87
County
0.28
0.27
0.27
Local School
1.17
1.16
1.09
Regional School
0.85
0.83
0.86
Assessed Valuations
2021
789,747,592.00
$
2020
788,525,792.00
$
2019
785,402,692.00
$
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
2021
25,331,781.37
$
24,972,995.34
$
98.58%
2020
24,829,924.45
24,502,020.79
98.67%
2019
24,315,947.73
23,914,613.94
98.34%
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, 2021
(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, 2021
(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, 2021
(Continued)
Note 9:
Cash and Cash Equivalents (Cont’d)
Investments (Cont'd)
As of December 31, 2021, 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
$
6,292,979.15
$
2,890.69
$
6,295,969.84
$
Animal Control Trust Fund
22,385.23
22,385.23
Other Trust Funds
1,408,732.24
1,408,732.24
General Capital Fund
2,624,308.96
2,624,308.96
Water Utility Operating Fund
100.00
939,607.56
4,355.58
944,063.14
Water Utility Capital Fund
2,584,701.68
2,584,701.68
200.00
$
13,872,714.82
$
7,246.27
$
13,880,161.09
$
During the period ended December 31, 2021, the Borough did not hold any investments. The carrying
amount of the Borough's cash and cash equivalents at December 31, 2021, was $13,880,161.09 and the
bank balance was $13,882,556.36. The $7,246.27 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, 2021
(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 the Governmental Accounting 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, 2021 financial statements were not available as of the date of this report. Selected
financial information for the Fund as of December 31, 2020 is as follows:
Morris County
Municipal Joint
Insurance Fund
Total Assets
37,043,381.00
$
Net Position
15,309,967.00
$
Total Revenue
21,527,917.00
$
Total Expenditures
19,011,852.00
$
Change in Net Position
2,516,065.00
$
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, 2021
(Continued)
Note 10: Risk Management (Cont’d)
New Jersey Unemployment Compensation Insurance (Cont’d)
Borough
Interest
Employees
Other
Amount
Ending
Year
Contributions
Earned
Contributions
Reimbursements
Reimbursed
Balance
2021
15,000.00
$
433.46
$
5,269.20
$
3,541.89
$
126,617.67
$
2020
15,000.00
584.65
5,285.86
7,415.02
$
1,883.22
109,456.90
2019
15,000.00
614.52
5,086.05
10,873.58
83,054.59
Note 11: 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 and
Nationwide, 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 12: 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.
Note 13: 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.
24
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 14: 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.
For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits’ (the Division) annual financial statements, 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.
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.
25
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 14: Postemployment Benefits Other Than Pensions (OPEB) (Cont’d)
State Health Benefit Local Government Retired Employees Plan (Cont’d)
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 (benefit) 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 (benefit) 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, 2019
through June 30, 2020. 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.
26
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 14: Postemployment Benefits Other Than Pensions (OPEB) (Cont’d)
State Health Benefit Local Government Retired Employees Plan (Cont’d)
OPEB Expense
The Borough has rolled forward the net OPEB liability as of June 30, 2020 with no adjustments. The
Division of Local Government Services, Department of Community Affairs, State of New Jersey, is
permitting municipalities and counties to include the June 30, 2020 OPEB information in the Notes to the
Financial Statements as the June 30, 2021 information has not been released as of the date of this report.
The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019,
which was rolled forward to June 30, 2020.
At June 30, 2020, the State’s proportionate share of the net OPEB liability attributable to the Borough was
$5,171,381. At June 30, 2020, the State’s proportion related to the Borough was .09467% which was an
increase of .01752 from its proportion measured as of June 30, 2019. This is the percentage of the total
State Share of the net OPEB liability of the Plan.
Additionally, during the year ended June 30, 2020, the State of New Jersey’s OPEB benefit related to the
Borough was $257,433.
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*:
Public Employees’ Retirement System (PERS)
Initial fiscal year applied
Rate through 2026
2.00% - 6.00%
Rate thereafter
3.00% to 7.00%
Police and Firemen’s Retirement System (PFRS)
Rate for all future years
3.25% to 15.25%
* - Salary increases are based on years of service within the respective plan.
Mortality:
PERS
Pub-2010 General classification headcount weighted mortality with fully generational
mortality improvement projections from the central year using Scale MP-2020
PFRS
Pub-2010 Safety classification headcount weighted mortality with fully generational
mortality improvement projections from the central year using Scale MP-2020
Actuarial assumptions used in the June 30, 2019 valuation were based on the results of the PFRS and
PERS experience studies prepared for July 1, 2013 to June 30, 2018 and July 1, 2014 – June 30, 2018,
respectively. 100% of active members are considered to participate in the Plan upon retirement.
27
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 14: 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 medical benefits, the trend rate is initially is 5.6% and decreases to a 4.5% long term
trend rate after seven years. For post 65 medical benefits, the actual fully-insured Medicare Advantage
trend rate for fiscal year 2021 through 2022 are reflected. The rates used for 2023 and 2024 are 21.83%
and 18.53%, respectively trending to 4.5% for all future years. For prescription drug benefits, the initial
trend rate is 7.0% and decreases to a 4.5% long term rate after seven years.
Discount Rate
The discount rate for June 30, 2020 was 2.21%. The discount rate for June 30, 2019 was 3.50%. 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 15: Fixed Assets
The following is a summarization of general fixed assets for the years ended December 31, 2020 and
2021.
Balance
Balance
12/31/19
Additions
Deletions
12/31/20
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
425,996.32
$
7,712,802.54
20,964,072.22
$
425,996.32
$
-0-
$
21,390,068.54
$
Balance
Balance
12/31/20
Additions
Deletions
12/31/21
Land
9,407,660.00
$
9,407,660.00
$
Buildings
4,269,606.00
4,269,606.00
Equipment and Vehicles
7,712,802.54
178,244.73
$
7,891,047.27
21,390,068.54
$
178,244.73
$
-0-
$
21,568,313.27
$
28
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021
(Continued)
Note 16: Interfund Receivables and Payables
The following interfund balances remain on the balance sheet at December 31, 2021:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
186,458.39
$
Other Trust Funds
186,458.39
$
186,458.39
$
186,458.39
$
The interfund payable in the Current Fund is the amount payable to Other Trust Fund for Deferred Sick
Leave and Storm Recovery reserves.
29
BOROUGH OF ROCKAWAY
SUPPLEMENTARY DATA
Schedule 1
BOROUGH OF ROCKAWAY
OFFICIALS IN OFFICE AND SURETY BONDS
YEAR ENDED DECEMBER 31, 2021
Amount of
Name
Title
Bond
Thomas Mulligan
Mayor
Melissa Burnside
Council President
Robert Smith
Councilman
Russell Greuter
Councilman
Patrick McDonald
Councilman
Thomas Haynes
Councilman
James Hurley
Councilman
Kimberly Cuspilich
Borough Clerk
(A)
Patricia Reiche
Chief Financial Officer/Treasurer/Administrator
(A)
Donna Browne
Tax Collector through 12/31/21
(A)
Susan Pfeil
Tax Collector from 01/01/22
(A)
Deborah Tanzola
Water Clerk through 12/31/21
(A)
Robyn Lance
Water Clerk from 01/01/22
(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
2021
CURRENT FUND
A-4
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2020
A
5,567,905.92
$
Increased by Receipts:
Tax Collector
25,288,444.30
$
Revenue Accounts Receivable
893,574.48
Miscellaneous Revenue Not Anticipated
284,975.80
Due General Capital Fund
Prior Year Interfund Returned
85,000.00
Due Water Utility Operating Fund:
Sewer Receipts
740,183.93
Due State of New Jersey:
Marriage License Fees
1,250.00
DCA Training Fees
5,145.00
Veterans and Senior Citizens' Deductions
38,726.03
Appropriation Refunds
203,905.72
Sewer Service Fee
1,000.00
Grants Receivable
394,877.31
27,937,082.57
33,504,988.49
Decreased by Disbursements:
2021 Appropriation Expenditures
8,095,991.63
$
2020 Appropriation Reserves
405,748.79
Local School Taxes
9,593,652.00
Regional High School Taxes
6,696,796.00
County Taxes
2,222,564.69
Refund of:
Tax Overpayments
6,564.04
Redemption of Third Party Tax Title Liens
122,690.92
Due State of New Jersey:
DCA Training Fees
5,728.00
Marriage License Fees
1,375.00
Appropriated Grant Reserves
58,007.58
27,209,118.65
Balance December 31, 2021
A
6,295,869.84
$
A-5
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2021
Increased by Receipts:
Taxes Receivable
24,912,479.63
$
Interest and Costs on Taxes
57,473.31
2022 Prepaid Taxes
219,306.51
Tax Overpayments
6,564.04
Third Party Tax Title Liens
91,550.01
Other Miscellaneous Revenue
1,070.80
25,288,444.30
$
Decreased by Disbursements:
Paid to Treasurer
25,288,444.30
$
A-6
BOROUGH OF ROCKAWAY
SCHEDULE OF CASH - GRANT FUNDS
YEAR ENDED DECEMBER 31, 2021
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'
to Tax
Balance
Year
Dec. 31, 2020
2021 Levy
2020
2021
Deductions
Cancelled
Title Liens
Dec. 31, 2021
2020
185,205.03
$
185,201.32
$
3.71
$
2021
25,331,781.37
$
207,960.18
$
24,727,278.31
37,756.85
$
15,061.03
141,742.92
$
201,982.08
$
185,205.03
$
25,331,781.37
$
207,960.18
$
24,912,479.63
$
37,756.85
$
15,064.74
$
141,742.92
$
201,982.08
$
Ref.
A
A
Analysis of 2021 Property Tax Levy:
Tax Yield:
General Purpose Tax
25,287,717.91
$
Added and Omitted Taxes
44,063.46
25,331,781.37
$
Tax Levy:
Local School District Taxes
9,285,367.00
$
Regional High School District Taxes
6,696,794.00
County Taxes
2,220,575.87
$
County Added and Omitted Taxes
3,880.51
2,224,456.38
18,206,617.38
Local Tax for Municipal Purposes Levied
6,795,480.96
Minimum Library Tax
282,140.04
Add: Additional Tax Levied
47,542.99
7,125,163.99
25,331,781.37
$
A-7
A-8
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
Ref.
Balance December 31, 2020
A
998,424.58
$
Increased by:
Transfer from Taxes Receivable
141,742.92
$
Interest and Cost Accrued at Tax Sale
16.00
141,758.92
Balance December 31, 2021
A
1,140,183.50
$
A-9
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Accrued In
Collected by
Balance
Dec. 31, 2020
2021
Treasurer
Dec. 31, 2021
Municipal Clerk:
Alcoholic Beverage Licenses
17,050.00
$
17,050.00
$
Fees and Permits
83,016.17
83,016.17
Other Licenses
15,030.00
15,030.00
Construction Code Official:
Fees and Permits
104,833.75
104,833.75
Municipal Court:
Fines and Costs - Township of Parsippany
2,344.82
$
35,618.18
36,396.47
1,566.53
$
Energy Receipts Taxes
546,995.00
546,995.00
Uniform Fire Safety Fees
27,753.09
27,753.09
Morris Hills Regional -
School Resource Officer
62,500.00
62,500.00
2,344.82
$
892,796.19
$
893,574.48
$
1,566.53
$
Ref.
A
A
A-9
A-10
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF SEWER RENTS RECEIVABLE
Ref.
Balance December 31, 2020
A
60,934.71
$
Increased by:
Sewer Rents Levied
748,264.35
$
Interest on Rents
3,699.64
751,963.99
812,898.70
Decreased by:
Collections in Current Fund:
Sewer Rents
736,484.29
Interest on Rents
3,699.64
740,183.93
Balance December 31, 2021
A
72,714.77
$
A-11
1 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2021
Balance
Balance After
Paid or
Balance
Dec. 31, 2020
Modification
Charged
Lapsed
GENERAL GOVERNMENT:
Mayor & Council:
Other Expenses
1,611.40
$
1,611.40
$
132.20
$
1,479.20
$
Clerk:
Salaries & Wages
17,335.42
17,335.42
17,335.42
Other Expenses
30,878.78
30,878.78
11,812.79
19,065.99
Financial Administration:
Salaries & Wages
3,686.40
3,686.40
3,686.40
Other Expenses
10,265.13
10,265.13
7,825.71
2,439.42
Audit Fees
13,500.00
13,500.00
13,500.00
Assessment of Taxes:
Salaries & Wages
100.00
100.00
100.00
Other Expenses
2,712.25
2,712.25
400.00
2,312.25
Revenue Administration (Tax Collection):
Salaries & Wages
37.74
37.74
37.74
Other Expenses
8,218.74
8,218.74
2,355.00
5,863.74
Legal Services and Costs:
Other Expenses - Fees
27,935.67
27,935.67
6,100.00
21,835.67
Engineering Services:
Other Expenses
26,730.19
26,730.19
2,203.63
24,526.56
Land Use Board:
Salaries & Wages
1,000.00
1,000.00
1,000.00
Other Expenses
2,684.30
2,684.30
280.00
2,404.30
Zoning Enforcement:
Other Expenses
400.00
400.00
400.00
Insurance:
Employee Group Insurance
171,932.11
171,932.11
25.00
171,907.11
Workers' Compensation
317.78
317.78
317.78
General Liability Insurance
12,552.00
12,552.00
12,552.00
Health Benefit Waiver
4,708.32
4,708.32
4,708.32
PUBLIC SAFETY
Office of Emergency Management:
Other Expenses
21,717.92
21,717.92
21,717.92
Volunteer Fire/Ambulance Department:
Salaries & Wages
0.08
0.08
0.08
Other Expenses
10,592.75
10,592.75
8,101.75
2,491.00
Fire Prevention/Uniform Fire Code:
Other Expenses
2,366.68
2,366.68
1,010.16
1,356.52
Police:
Salaries & Wages
215,854.99
215,854.99
70,105.88
145,749.11
Other Expenses
48,710.68
48,710.68
25,166.56
23,544.12
A-11
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2021
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2020
Modification
Charged
Lapsed
PUBLIC SAFETY
Alarm System - Police and Fire:
Other Expenses
206.39
$
206.39
$
206.39
$
Road Repairs and Maintenance:
Salaries & Wages
50,026.64
50,026.64
50,026.64
$
Other Expenses
120,040.56
120,040.56
120,040.56
Other Public Works Functions:
Other Expenses
581.25
581.25
581.25
Shade Tree Commission:
Other Expenses
839.81
839.81
676.50
163.31
Sewer:
Other Expenses
7,899.76
7,899.76
7,899.76
Public Building and Grounds:
Other Expenses
14,626.36
14,626.36
8,438.58
6,187.78
Vehicle Maintenance:
Other Expenses
7,553.62
7,553.62
7,539.19
14.43
HEALTH AND WELFARE:
Board of Health:
Other Expenses
7,532.66
7,532.66
7,532.66
Senior Citizens' Programs:
Salaries & Wages
1,807.91
1,807.91
1,807.91
Other Expenses
5,000.00
5,000.00
5,000.00
RECREATION AND EDUCATION:
Recreation Commission:
Salaries & Wages
19,400.02
19,400.02
19,400.02
Other Expenses
22,440.87
22,440.87
411.29
22,029.58
Maintenance of Parks:
Other Expenses
7,154.60
7,154.60
7,154.60
UNIFORM CONSTRUCTION CODE:
Construction Code Official:
Salaries & Wages
1,186.28
1,186.28
1,186.28
Other Expenses
576.01
576.01
190.00
386.01
Uniform Construction Code Enforcement:
Salaries & Wages
476.16
476.16
476.16
Other Expenses
248.00
248.00
168.00
80.00
UNCLASSIFIED:
Utilities:
Gas (Natural or Propane)
8,112.02
8,112.02
434.29
7,677.73
Street Lighting
11,074.45
11,074.45
9,280.29
1,794.16
Electricity
13,991.27
13,991.27
6,755.99
7,235.28
Gasoline and Diesel
16,091.12
16,091.12
1,492.47
14,598.65
Telephone
16,362.13
16,362.13
475.77
15,886.36
A-11
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2021
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2020
Modification
Charged
Lapsed
UNCLASSIFIED (Cont'd)
Celebration of Public Events:
Other expenses
14,200.00
$
14,200.00
$
14,200.00
$
Salary Adjustments
10,729.26
10,729.26
10,729.26
Solid Waste Disposal:
Salaries & Wages
3,394.33
3,394.33
3,394.33
Other Expenses
75,153.45
75,153.45
60,492.84
$
14,660.61
Contingent
500.00
500.00
500.00
STATUTORY EXPENDITURES:
Public Employees Retirement System
11,975.00
11,975.00
4,450.56
7,524.44
Contribution to Social Security System (OASI
20,662.90
20,662.90
20,662.90
Defined Contribution Retirement Plan
0.03
0.03
0.03
Police and Fire Retirement System
74.00
74.00
74.00
Aid to Municipal Library
10,682.07
10,682.07
10,682.07
Length of Service Awards Program
20,000.00
20,000.00
17,400.00
2,600.00
Sewage Processing and Disposal
48,121.31
48,121.31
48,121.31
SHARED SERVICE AGREEMENTS:
Morris Hills Regional District - Police:
Salaries & Wages
1,146.32
1,146.32
1,146.32
Parsippany-Troy Hills - Municipal Court
5,000.00
5,000.00
5,000.00
CAPITAL IMPROVEMENTS:
Fire Department Equipment
3,796.34
3,796.34
3,796.34
Police Department Equipment
13,000.00
13,000.00
12,521.98
478.02
Recreation Equipment
9,508.65
9,508.65
1,620.00
7,888.65
Sewer Capital Improvements
125,000.00
125,000.00
125,000.00
1,342,020.88
$
1,342,020.88
$
647,007.11
$
695,013.77
$
Ref.
Balance December 31, 2020
Unencumbered
A
1,145,843.91
$
Encumbered
A
196,176.97
1,342,020.88
$
Analysis of Paid or Charged
Cash Disbursed
405,748.79
$
Reserve for Sewer Improvements
48,121.31
Due Other Trust Funds:
Deferred Sick Leave
43,171.41
Storm Recovery
143,286.98
Accounts Payable
6,678.62
647,007.11
$
A-12
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance December 31, 2020
A
308,285.00
$
Increased by:
Levy - Calendar Year 2021
9,285,367.00
9,593,652.00
Decreased by:
Payments to Local School District
9,593,652.00
Balance December 31, 2021
A
- 0 -
$
A-13
CURRENT FUND
SCHEDULE OF REGIONAL HIGH SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance December 31, 2020
A
2.00
$
Increased by:
Levy - Calendar Year 2021
6,696,794.00
6,696,796.00
Decreased by:
Payments to Regional High School District
6,696,796.00
Balance December 31, 2021
A
- 0 -
$
A-14
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
Balance
Revenue
Received in
Balance
Dec. 31, 2020
Realized
Current Fund
Cancelled
Dec. 31, 2021
Click It or Ticket
6,000.00
$
6,000.00
$
Recycling Tonnage Grant
5,825.52
$
8,635.06
8,635.06
5,825.52
$
Clean Communities
12,978.96
12,978.96
Bulletproof Vest Partnership Grant
1,735.98
1,735.98
Body Armor Replacement
1,482.12
1,482.12
Body-Worn Cameras Grant
34,646.00
34,646.00
Safe and Secure Communities Grant:
2020
22,055.25
22,055.25
2021
15,880.00
3,970.00
11,910.00
Drive Sober Or Get Pulled Over Grant
6,000.00
5,490.00
510.00
$
Drunk Driving Enforcement Fund
1,479.03
1,479.03
Municipal Alliance Grant
12,095.88
5,400.00
5,816.00
11,679.88
Morris County Historic Preservation Trust Fund Grant:
Fox's Brook Culvert Project
22,400.00
22,400.00
American Rescue Plan Grant
328,449.92
328,449.92
65,591.66
$
419,472.06
$
394,877.31
$
510.00
$
89,676.41
$
Ref.
A
A
Adopted Budget
36,605.52
$
Added by N.J.S.A. 40A:4-87
382,866.54
419,472.06
$
Federal
339,939.92
$
State
54,937.39
394,877.31
$
A-14
A-15
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF UNAPPROPRIATED GRANT RESERVES
YEAR ENDED DECEMBER 31, 2021
NOT APPLICABLE
A-16
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF APPROPRIATED GRANT RESERVES
Transferred
from
Balance
2021 Budget
Paid or
Balance
Dec. 31, 2020
Appropriations
Charged
Cancelled
Dec. 31, 2021
Body Armor Grant
3,407.25
$
1,482.12
$
3,407.25
$
1,482.12
$
Body-Worn Cameras Grant
34,646.00
34,646.00
Clean Communities:
2019
4,476.20
4,476.20
2020
12,194.36
12,194.36
2021
12,978.96
225.50
12,753.46
Click It or Ticket
6,000.00
6,000.00
Bulletproof Vest
1,735.98
1,735.98
Distracted Driving
55.00
55.00
Drive Sober or Get Pulled Over
6,000.00
5,490.00
510.00
$
Drunk Driving Enforcement Fund
19,037.09
846.63
18,190.46
Trolley 2018 - Local Match
8,065.50
8,065.50
Municipal Alliance:
2020
8,824.15
6,201.33
2,622.82
2021
5,400.00
5,400.00
Municipal Alliance 2020 - Local Match
2,206.04
1,550.33
655.71
Municipal Alliance 2021 - Local Match
850.00
850.00
Recycling Tonnage:
2018
2,012.83
2,012.83
2019
5,825.52
5,825.52
2020
5,825.52
5,825.52
2021
8,635.06
2,935.00
5,700.06
Safe and Secure Communities:
2021
15,880.00
15,880.00
Local Safety Improvement
3,224.08
3,224.08
American Rescue Plan Grant
328,449.92
109,171.00
219,278.92
76,889.52
$
420,322.06
$
170,113.58
$
510.00
$
326,588.00
$
Ref.
A
A
Adopted Budget
36,605.52
$
Local Match
850.00
Added by N.J.S.A. 40A:4-87
382,866.54
420,322.06
$
Cash Disbursements
58,007.58
$
Encumbrances Payable
A
112,106.00
170,113.58
$
Federal
122,396.98
$
State
46,166.27
Local
1,550.33
170,113.58
$
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
TRUST FUNDS
B-4
1 of 2
Ref.
Animal Control Fund
Other Trust Funds
Balance December 31, 2020
B
24,342.00
$
1,542,416.36
$
Increased by Receipts:
License Fees
10,681.40
$
Interest on Investments
101.25
State Registration Fees
786.60
Prepaid Licenses
638.00
Miscellaneous Fees
1,357.00
Trust Escrow
110,699.67
$
Council on Affordable Housing
2,970.25
Addison Hills Escrow
3.65
Parking Offense Adjudication Act
10.00
Unemployment Insurance Deposits
20,702.66
Forfeited Assets
3.91
Recycling
8,110.07
Public Defender
915.00
National Night Out
2,800.00
Fire Prevention
1,500.00
Outside Police Services
512,420.00
Recreation Deposits
53,964.91
Reserve for Storm Recovery
12,260.01
Police Donations
250.00
13,564.25
726,610.13
2,269,026.49
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
(Continued)
Ref.
Animal Control Fund
Other Trust Funds
Decreased by Disbursements:
Due Current Fund:
Interest on Investments
101.25
$
State of New Jersey Board of Health
802.80
Expenditures Under R.S. 4:19-15.11
14,616.97
Tax Sale Premiums
120,500.00
$
Council on Affordable Housing
51,771.20
Unemployment Insurance Expenditures
3,541.89
National Night Out
905.30
Fire Prevention
1,541.58
Outside Police Services
479,324.05
Parking Offense Adjudication Act
658.00
Forfeited Assets
12.00
Recycling
4,800.41
Trust Escrow
69,535.46
Deferred Sick Leave
16,111.87
Storm Recovery
98,899.71
Recreation Expenditures
12,692.78
15,521.02
$
860,294.25
$
Balance December 31, 2021
B
22,385.23
$
1,408,732.24
$
B-4
2 of 2
B-5
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
ANALYSIS OF CASH
YEAR ENDED DECEMBER 31, 2021
NOT APPLICABLE
B-6
BOROUGH OF ROCKAWAY
ANIMAL CONTROL FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
Ref.
Balance December 31, 2020
B
23,503.00
$
Dog and Cat License Fees
10,681.40
$
Prior Year Prepaid Licenses Applied
783.80
Miscellaneous Fees
1,357.00
12,822.20
36,325.20
Decreased by:
Expenditures Under R.S. 4:19-15.11
14,616.97
14,616.97
Balance December 31, 2021
B
21,708.23
$
License Fees Collected
Amount
Year
2019
12,681.60
$
2020
10,710.00
Maximum Allowable Reserve
23,391.60
$
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
GENERAL CAPITAL FUND
C-2
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2020
C
3,010,427.44
$
Increased by:
Capital Fund Balance:
Grant Funds Received on Fully Funded Ordinances:
NJ Department of Transportation - Elycroft Avenue
46,896.72
$
Morris County Historic Preservation Trust
63,690.00
Community Development Block Grant - Stone Arch Culvert
65,185.90
Grants Receivable:
NJ Department of Transportation
165,359.82
Community Development Block Grant:
Sanitary Sewer Rehabilitation Project
80,000.00
Capital Improvement Fund:
2021 Budget Appropriation
258,000.00
Serial Bonds Proceeds
5,390,000.00
Premium on Serial Bonds
1,112,622.00
Bond Anticipation Note Proceeds
468,227.00
Due Current Fund:
Interest
11,612.04
7,661,593.48
10,672,020.92
Decreased by:
Improvement Authorizations
2,230,900.92
Bond Anticipation Notes
5,720,199.00
Due Current Fund:
Interest
11,612.04
Prior Year Interfund
85,000.00
8,047,711.96
Balance December 31, 2021
C
2,624,308.96
$
C-3
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
ANALYSIS OF CASH
Receipts
Disbursements
Balance/
Bond
Serial
Bond
Balance/
(Deficit)
Budget
Anticipation
Bond
Improvement
Anticipation
Transfers
(Deficit)
Dec. 31, 2020
Miscellaneous
Appropriation
Notes
Proceeds
Authorizations
Notes
Miscellaneous
From
To
Dec. 31, 2021
Capital Fund Balance
114,969.87
$
175,772.62
$
12,925.52
$
303,668.01
$
Capital Improvement Fund
115,064.50
258,000.00
$
38,744.00
$
334,320.50
Due from Current Fund
85,000.00
11,612.04
96,612.04
$
Community Development Block Grant Receivable:
Sanitary Sewer Rehabilitation Project
(80,000.00)
80,000.00
NJ Department of Transportation
(454,654.65)
165,359.82
247,900.00
80,932.27
(456,262.56)
Reserve to Pay Debt Service
12,925.52
12,925.52
Ord. No.
Improvement Description
04-11
Various Capital Improvements
64,325.16
64,325.16
$
12-13
Road Improvements
11,901.29
2,851.00
9,050.29
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
333,409.09
545,210.00
$
329,198.60
545,210.00
$
4,210.49
14-16
Various Capital Improvements
862,983.15
1,937,642.00
812,585.29
1,937,642.00
50,397.86
10-17
Various Capital Improvements
1,066.08
746,643.00
746,643.00
1,066.08
06-18
Various Capital Improvements
626,640.98
1,253,577.00
300,388.32
1,159,904.00
80,932.27
338,993.39
12-19
Various Capital Improvements
486,526.90
751,300.00
142,200.14
751,300.00
344,326.76
05-20
Sanitary Sewer Rehabilitation Project
40,486.31
40,486.31
06-20
Various Capital Improvements
911,849.90
669,750.00
56,779.64
579,500.00
945,320.26
11-20
Fox Lake Dam Repairs and Improvements
(126,184.94)
598,500.00
472,315.06
14-21
Various Capital Improvements
468,227.00
$
48,828.91
286,644.00
706,042.09
3,010,427.44
$
432,744.48
$
258,000.00
$
468,227.00
$
6,502,622.00
$
2,230,900.92
$
5,720,199.00
$
96,612.04
$
380,501.79
$
380,501.79
$
2,624,308.96
$
C-3
C-4
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Paid by
Bond
Ord.
Balance
2021
Bond
Balance
Anticipation
No.
Dec. 31, 2020
Authorizations
Funds
Dec. 31, 2021
Notes
12-15
Various Capital Improvements
545,210.00
$
545,210.00
$
14-16
Various Capital Improvements
1,937,642.00
1,937,642.00
10-17
Various Capital Improvements
746,643.00
746,643.00
06-18
Various Capital Improvements
1,253,577.00
1,253,577.00
12-19
Various Capital Improvements
751,300.00
751,300.00
06-20
Various Capital Improvements
669,750.00
669,750.00
11-20
Fox Lake Dam Repairs and Improvements
598,500.00
598,500.00
14-21
Various Capital Improvements
468,227.00
$
468,227.00
$
468,227.00
$
6,502,622.00
$
468,227.00
$
6,502,622.00
$
468,227.00
$
468,227.00
$
Ref.
C
C
Serial Bonds Issued
5,390,000.00
$
Premium on Bond Sale
1,112,622.00
6,502,622.00
$
Improvement Authorizations - Unfunded
468,227.00
$
Improvement Description
Analysis of Balance
December 31, 2021
C-4
C-5
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
New Jersey
Deferred
Balance
Capital
Department of
Charges to
Improvement
Balance
Ord.
Ordinance
December 31, 2020
Improvement
Transportation
Future Taxation
Paid or
Authorizations
December 31, 2021
No.
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Grant
Unfunded
Charged
Cancelled
Funded
Unfunded
04-11
Various Capital Improvements
05/12/11
1,713,175.00
$
64,325.16
$
64,325.16
$
12-13
Road Improvements
07/25/13
400,000.00
11,901.29
2,851.00
9,050.29
$
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
333,409.09
$
329,198.60
4,210.49
14-16
Various Capital Improvements
09/08/16
2,361,600.00
862,983.15
812,585.29
50,397.86
10-17
Various Capital Improvements
06/22/17
947,000.00
1,066.08
1,066.08
06-18
Various Capital Improvements
06/28/18
1,761,410.00
720,313.98
300,388.32
80,932.27
$
338,993.39
12-19
Various Capital Improvements
07/11/19
789,790.00
486,526.90
142,200.14
344,326.76
05-20
Sanitary Sewer Rehabilitation Project
05/14/20
123,600.00
40,486.31
40,486.31
06-20
Various Capital Improvements
06/11/20
1,025,000.00
332,349.90
669,750.00
56,779.64
945,320.26
11-20
Fox Lake Dam Repairs and Improvements
08/13/20
630,000.00
472,315.06
472,315.06
14-21
Various Capital Improvements
06/10/21
754,871.00
38,744.00
$
247,900.00
$
468,227.00
$
48,828.91
237,815.09
468,227.00
$
453,180.94
$
3,546,364.26
$
38,744.00
$
247,900.00
$
468,227.00
$
2,230,900.92
$
80,932.27
$
1,974,356.01
$
468,227.00
$
Ref.
C
C
C
C
NJDOT Grants Receivable
80,932.27
$
2021 Authorizations
C-5
C-6
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2020
C
115,064.50
$
Increased by:
Current Fund Budget Appropriation
258,000.00
373,064.50
Decreased by:
Appropriated to Finance Improvement Authorizations
38,744.00
Balance December 31, 2021
C
334,320.50
$
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, 2020
Issued
Matured
Dec. 31, 2021
12-15
Various Capital Improvements
09/22/15
09/10/20
01/22/21
1.00%
545,210.00
$
545,210.00
$
14-16
Various Capital Improvements
11/23/16
09/10/20
01/22/21
1.00%
1,937,642.00
1,937,642.00
10-17
Various Capital Improvements
09/14/17
09/10/20
01/22/21
1.00%
746,643.00
746,643.00
06-18
Various Capital Improvements
06/28/18
09/10/20
01/22/21
1.00%
1,159,904.00
1,159,904.00
12-19
Various Capital Improvements
07/11/19
09/10/20
01/22/21
1.00%
751,300.00
751,300.00
06-20
Various Capital Improvements
09/10/20
09/10/20
01/22/21
1.00%
579,500.00
579,500.00
14-21
Various Capital Improvements
10/26/21
10/26/21
10/26/22
0.60%
468,227.00
$
468,227.00
$
5,720,199.00
$
468,227.00
$
5,720,199.00
$
468,227.00
$
Ref.
C
C
Issued for Cash
468,227.00
$
Premium on Bond Sale
330,199.00
$
Serial Bonds Issued
5,390,000.00
468,227.00
$
5,720,199.00
$
C-7
C-8
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF SERIAL BONDS PAYABLE
Maturities of Bonds
Outstanding
Date of
Original
December 31, 2021
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2020
Issued
Matured
Dec. 31, 2021
General Improvement Bonds 08/30/11
3,470,000.00
$
08/15/21
415,000.00
$
4.50%
415,000.00
$
415,000.00
$
General Improvement Bonds 01/19/21
5,390,000.00
08/01/22
295,000.00
4.00%
08/01/23
310,000.00
4.00%
08/01/24
320,000.00
4.00%
08/01/25
335,000.00
4.00%
08/01/26
345,000.00
4.00%
08/01/27
360,000.00
5.00%
08/01/28
380,000.00
5.00%
08/01/29
400,000.00
5.00%
08/01/30
420,000.00
5.00%
08/01/31
440,000.00
5.00%
08/01/32
460,000.00
4.00%
08/01/33
480,000.00
4.00%
08/01/34
500,000.00
3.00%
5,390,000.00
$
345,000.00
5,045,000.00
$
415,000.00
$
5,390,000.00
$
760,000.00
$
5,045,000.00
$
Ref.
C
C
C-8
C-9
Bond
Bond
Anticipation
Anticipation
Paid by
Ord.
Ord.
Balance
2021
Notes
Notes
Bond
Balance
Number
Date
Improvement Description
Dec. 31, 2020
Authorizations
Redeemed
Issued
Funds
Dec. 31, 2021
12-15
08/19/15
Various Capital Improvements
545,210.00
$
545,210.00
$
14-16
09/08/16
Various Capital Improvements
1,937,642.00
1,937,642.00
10-17
06/22/17
Various Capital Improvements
746,643.00
746,643.00
06-18
06/28/18
Various Capital Improvements
93,673.00
$
1,159,904.00
1,253,577.00
12-19
07/11/19
Various Capital Improvements
751,300.00
751,300.00
06-20
06/11/20
Various Capital Improvements
90,250.00
579,500.00
669,750.00
11-20
08/13/20
Fox Lake Dam Repairs and Improvements
598,500.00
598,500.00
14-21
06/10/21
Various Capital Improvements
468,227.00
$
468,227.00
$
782,423.00
$
468,227.00
$
5,720,199.00
$
468,227.00
$
6,502,622.00
$
- 0 -
$
Serial Bonds Issued
5,390,000.00
$
Premium on Bond Sale
1,112,622.00
6,502,622.00
$
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
C-9
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
WATER UTILITY FUND
D-4
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUNDS
SCHEDULE OF CASH - TREASURER
Ref.
Operating
Capital
Balance December 31, 2020
D
1,005,511.89
$
2,982,158.34
$
Increased by Receipts:
Water Utility Collector
2,803,668.78
$
Interest on Investments
3,932.42
Appropriation Refunds
21,547.72
Water Allocation Fees
5,834.00
Other Miscellaneous Revenue - Treasurer
3,766.00
Other Miscellaneous
2.00
Bond Proceeds
3,540,000.00
$
Bond Premium
577,540.00
Refunding Bond Proceeds
1,250,000.00
Budget Appropriation:
Capital Improvement Fund
240,000.00
Due Water Utility Operating Fund:
Interfund Advanced
2,500.00
Interest Earned
11,007.44
11,007.44
2,849,758.36
5,621,047.44
3,855,270.25
8,603,205.78
Decreased by Disbursements:
2021 Budget Appropriations
1,899,610.44
2020 Appropriation Reserves
151,279.53
Accounts Payable
3,539.25
Accrued Interest on Notes
15,097.65
Accrued Interest on Bonds
99,096.31
D-4
1 of 2
D-4
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUNDS
SCHEDULE OF CASH - TREASURER
(Continued)
Ref.
Operating
Capital
Decreased by Disbursements:
Improvement Authorizations Expenditures
1,889,956.66
Bond Anticipation Notes Paid by Bond Funds
4,117,540.00
Due from Water Capital Fund:
Accrued Interest on Bonds
2,500.00
Due Current Fund:
Sewer Receipts
740,183.93
Due Water Utility Operating Fund
Interest Earned
11,007.44
2,911,307.11
6,018,504.10
Balance December 31, 2021
D
943,963.14
$
2,584,701.68
$
D-4
2 of 2
D-4A
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2021
Increased by Receipts:
Water Rents
2,011,443.13
$
Allocation Fees
3,666.00
Hydrants
23,325.00
Sprinklers
15,332.41
Interest on Delinquent Accounts
9,718.31
Total Consumer Accounts Receivable
2,063,484.85
$
Due Current Fund:
Sewer Rents
736,484.29
Sewer Interest on Delinquents
3,699.64
740,183.93
Decreased by Disbursements:
Paid to Treasurer
2,803,668.78
$
D-5
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
ANALYSIS OF WATER CAPITAL CASH
Receipts
Bond
Balance
Serial
Budget
Bond
Anticipation
Improvement
Transfers
Balance
Dec. 31, 2020
Bonds
Appropriation
Premium
Miscellaneous
Notes
Authorizations
Miscellaneous
From
To
Dec. 31, 2021
Capital Fund Balance
4,797.60
$
12,518.58
$
17,316.18
$
Capital Improvement Fund
230,112.04
240,000.00
$
200,000.00
$
270,112.04
Due Water Utility Operating Fund
13,507.44
$
11,007.44
$
2,500.00
Reserve for Capital Improvements
150,063.08
150,063.08
Reserve to Pay Debt Service
12,518.58
12,518.58
Community Development Block Grant Receivable
80,000.00
(80,000.00)
Ord.
No.
Improvement Description
08-09
Various Water Utility Improvements
1,188.18
725.00
$
463.18
05-11
Various Water Utility Improvements
1,711.50
1,711.50
11-15
Various Water Utility Improvements
18,939.49
100,000.00
$
8,094.00
$
108,094.00
$
18,939.49
15-16
Various Water Utility Improvements
228,741.77
630,000.00
9,239.00
639,239.00
44,486.39
184,255.38
09-17
Various Water Utility Improvements
56,002.00
700,000.00
5,737.00
705,737.00
56,002.00
07-18
Various Water Utility Improvements
629,523.16
930,000.00
6,586.00
1,022,470.00
244,874.58
298,764.58
10-19
Acquisition and Installation of Generator
44,954.19
8,200.00
36,754.19
11-19
Various Water Utility Improvements
880,146.75
580,000.00
7,942.00
918,540.00
10,920.69
538,628.06
07-20
Various Water Utility Improvements
223,460.00
40,000.00
3,460.00
223,460.00
43,460.00
14-20
Water Main Improvements
500,000.00
500,000.00
500,000.00
276,630.00
223,370.00
15-20
Refunding Bonds
1,250,000.00
1,250,000.00
12-21
Various Water Utility Improvements
4,186.50
280,000.00
275,813.50
20-21
Installation of Water Meters & Equipment
60,000.00
536,482.00
48,222.00
548,260.00
2,982,158.34
$
4,790,000.00
$
240,000.00
$
577,540.00
$
13,507.44
$
4,117,540.00
$
1,889,956.66
$
11,007.44
$
292,518.58
$
292,518.58
$
2,584,701.68
$
Disbursements
D-5
D-6
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Ref.
Balance December 31, 2020
D
195,454.76
$
Increased by:
Water Rents Levied
2,108,054.18
2,303,508.94
Decreased by:
Collections
2,011,443.13
Balance December 31, 2021
D
292,065.81
$
D-7
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Additions By
Balance
Additions By
Budget
Balance
Dec. 31, 2020
Ordinance
Capital Outlay
Dec. 31, 2021
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
722.50
$
78,470.36
General Structures
71,837.61
71,837.61
Meters, Meter Boxes and Vaults
359,688.86
24,935.00
384,623.86
Engineering
11,004.96
11,004.96
General Equipment
259,054.64
55,884.15
$
314,938.79
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
65,984.60
65,984.60
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
378,996.86
264,411.47
36,000.00
679,408.33
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
Air Stripper Repairs
125,000.00
125,000.00
Siding and Infrastructure Upgrades
100,000.00
100,000.00
Hydrants and Valves Replacement
100,860.28
7,551.10
108,411.38
D-7
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
(Continued)
Additions By
Balance
Additions By
Budget
Balance
Dec. 31, 2020
Ordinance
Capital Outlay
Dec. 31, 2021
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
611.00
$
4,357.55
Water Tank Site Improvements
16,445.00
16,445.00
Chlorinator Analyst
6,803.56
6,803.56
Fire Door and Security Camera
6,000.00
6,000.00
Signage
798.00
798.00
Improvements to Fox Lake Dam
307,518.41
$
307,518.41
Police Station Bridge Repairs
15,427.12
15,427.12
7,813,935.08
$
643,241.15
$
69,819.60
$
8,526,995.83
$
D
D
2020 Appropriation Reserves
69,819.60
$
D-8
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
Costs
Improvement
Transferred
Ord.
Balance
2021
Serial Bonds
Authorizations
to Fixed
Balance
No.
Improvement Description
Dec. 31, 2020
Authorizations
Issued
Cancelled
Capital
Reappropriation
Dec. 31, 2021
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
1,022,470.00
(85,884.00)
$
936,586.00
10-19
Acquisition and Installation of Generator
55,000.00
55,000.00
11-19
Various Water Utility Improvements
918,540.00
(330,598.00)
587,942.00
07-20
Various Water Utility Improvements
223,460.00
(180,000.00)
43,460.00
14-20
Water Main Improvements
500,000.00
500,000.00
15-20
Refunding Bonds Ordinance
1,270,000.00
1,250,000.00
$
20,000.00
$
12-21
Various Water Utility Improvements
280,000.00
$
280,000.00
20-21
Installation of Water Meters and Equipment
596,482.00
596,482.00
6,726,287.57
$
280,000.00
$
1,250,000.00
$
20,000.00
$
643,241.15
$
- 0 -
$
5,093,046.42
$
D
D
D-8
D-9
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2021
Balance
Balance
After
Paid or
Balance
Dec. 31, 2020
Modification
Charged
Lapsed
Operating:
Salaries and Wages
48,981.95
$
48,981.95
$
3,612.31
$
45,369.64
$
Other Expenses
371,437.54
371,437.54
77,847.62
293,589.92
Capital Outlay
136,956.90
136,956.90
130,166.13
6,790.77
Deferred Charges/Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Social Security System (OASI)
8,044.40
8,044.40
8,044.40
565,420.79
$
565,420.79
$
211,626.06
$
353,794.73
$
Ref.
Balance December 31, 2020:
Unencumbered
D
454,577.82
$
Encumbered
D
110,842.97
565,420.79
$
Cash Disbursements
151,279.53
$
Accounts Payable
60,346.53
211,626.06
$
D-10
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Community
Development
Capital
Improvement
Balance
Ord.
Ordinance
Block
Improvement
Paid or
Authorizations
Dec. 31, 2021
No.
Improvement Description
Date
Amount
Funded
Unfunded
Grant
Fund
Charged
Reappropriation
Cancelled
Funded
08-09
Various Water Utility Improvements
06/25/2009
477,000.00
$
1,188.18
$
725.00
$
463.18
$
05-11
Various Water Utility Improvements
05/12/2011
701,000.00
1,711.50
1,711.50
11-15
Various Water Utility Improvements
07/09/2015
300,000.00
18,939.49
$
18,939.49
15-16
Various Water Utility Improvements
09/08/2016
774,000.00
228,741.77
44,486.39
184,255.38
09-17
Various Water Utility Improvements
05/10/2017
740,000.00
56,002.00
56,002.00
07-18
Various Water Utility Improvements
06/28/2018
1,206,470.00
629,523.16
244,874.58
(85,884.00)
$
298,764.58
10-19
Acquisition and Installation of Generator
07/11/2019
55,000.00
44,954.19
8,200.00
36,754.19
11-19
Various Water Utility Improvements
07/11/2019
1,098,000.00
880,146.75
10,920.69
(330,598.00)
538,628.06
07-20
Various Water Utility Improvements
06/11/2020
360,000.00
223,460.00
(180,000.00)
43,460.00
14-20
Water Main Improvements
10/22/2020
500,000.00
500,000.00
276,630.00
223,370.00
15-20
Refunding Bonds Ordinance
11/12/2020
1,270,000.00
1,270,000.00
1,250,000.00
20,000.00
$
12-21
Various Water Utility Improvements
05/13/2021
280,000.00
80,000.00
$
200,000.00
$
4,186.50
275,813.50
20-21
Installation of Water Meters and Equipment
06/10/2021
596,482.00
48,222.00
596,482.00
548,260.00
47,853.87
$
3,806,813.17
$
80,000.00
$
200,000.00
$
1,889,956.66
$
- 0 -
$
20,000.00
$
2,224,710.38
$
Ref.
D
D
D
Deferred Charges to Future Revenue
20,000.00
$
Balance Dec. 31, 2020
2021 Authorizations
D-10
D-11
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2020
D
230,112.04
$
Increased by:
2021 Budget Appropriation
240,000.00
470,112.04
Decreased by:
Appropriated to Finance Improvement Authorizations
200,000.00
Balance December 31, 2021
D
270,112.04
$
D-12
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
Transfer
Ord.
Date of
Balance
2021
to Reserve
Balance
No.
Improvement Description
Ordinance
Dec. 31, 2020
Authorizations
for Amortization
Dec. 31, 2021
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
12-21
Various Water Utility Improvements
05/13/2021
280,000.00
$
280,000.00
329,241.15
$
280,000.00
$
609,241.15
$
- 0 -
$
Ref.
D
D
D-12
D-12A
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
Ref.
Balance December 31, 2020
D
7,568,441.50
$
Increased by:
Budget Appropriations:
Capital Outlay
69,819.60
$
Transferred from Deferred Reserve for Amortization
609,241.15
Serial Bonds Defeased
1,200,000.00
Bond Anticipation Notes Paid by Bond Premium
577,540.00
Serial Bonds Paid by Operating Budget
210,000.00
2,666,600.75
10,235,042.25
Decreased by:
Water Utility Refunding Bonds Issued
1,250,000.00
Balance December 31, 2021
D
8,985,042.25
$
D-13
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
YEAR ENDED DECEMBER 31, 2021
Date of
Ord.
Improvement
Original
Date of
Interest
Balance
No.
Description
Note
Original Note
Issue
Maturity
Rate
Dec. 31, 2020
Matured
11-15
Various Water Improvements
300,000.00
$
9/19/2016
09/10/2020
01/22/2021
1.00%
108,094.00
$
108,094.00
$
15-16
Various Water Improvements
694,000.00
11/23/2016
09/10/2020
01/22/2021
1.00%
639,239.00
639,239.00
09-17
Various Water Improvements
740,000.00
9/14/2017
09/10/2020
01/22/2021
1.00%
705,737.00
705,737.00
07-18
Various Water Improvements
379,600.00
9/13/2018
09/10/2020
01/22/2021
1.00%
1,022,470.00
1,022,470.00
11-19
Various Water Improvements
730,920.00
09/12/2019
09/10/2020
01/22/2021
1.00%
918,540.00
918,540.00
07-20
Various Water Improvements
360,000.00
09/10/2020
09/10/2020
01/22/2021
1.00%
223,460.00
223,460.00
14-20
Water Main Improvements
500,000.00
09/10/2020
09/10/2020
01/22/2021
1.00%
500,000.00
500,000.00
4,117,540.00
$
4,117,540.00
$
Ref.
D
Paid by Bond Funds
3,540,000.00
$
Paid by Bond Premium
577,540.00
4,117,540.00
$
D-13
D-14
1 of 2
Maturities of Bonds Outstanding
Date of
Original
December 31, 2021
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2020
Issued
Matured
Defeased
Dec. 31, 2021
Water Utility Bonds of 2011
8/30/11
1,710,000.00
$
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%
1,255,000.00
$
55,000.00
$
1,200,000.00
$
Water Utility Refunding
Bonds of 2021
1/19/21
1,250,000.00
2/1/2022
80,000.00
0.293%
2/1/2023
75,000.00
0.403%
2/1/2024
80,000.00
0.571%
2/1/2025
75,000.00
0.809%
2/1/2026
80,000.00
0.919%
2/1/2027
80,000.00
1.233%
2/1/2028
80,000.00
1.473%
2/1/2029
85,000.00
1.664%
2/1/2030
85,000.00
1.764%
2/1/2031
85,000.00
1.854%
2/1/2032
85,000.00
1.994%
2/1/2033
90,000.00
2.104%
2/1/2034
90,000.00
2.204%
2/1/2035
90,000.00
2.314%
2/1/2036
90,000.00
2.444%
1,250,000.00
$
1,250,000.00
$
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF WATER CAPITAL SERIAL BONDS
D-14
1 of 2
D-14
2 of 2
Maturities of Bonds Outstanding
Date of
Original
December 31, 2021
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2020
Issued
Matured
Defeased
Dec. 31, 2021
Water Utility Bonds of 2021
1/19/21
3,540,000.00
$
8/1/2022
120,000.00
$
4.000%
8/1/2023
125,000.00
4.000%
8/1/2024
130,000.00
4.000%
8/1/2025
135,000.00
4.000%
8/1/2026
140,000.00
4.000%
8/1/2027
145,000.00
5.000%
8/1/2028
155,000.00
5.000%
8/1/2029
160,000.00
5.000%
8/1/2030
170,000.00
5.000%
8/1/2031
180,000.00
5.000%
8/1/2032
185,000.00
4.000%
8/1/2033
195,000.00
4.000%
8/1/2034
200,000.00
3.000%
8/1/2035
210,000.00
3.000%
8/1/2036
215,000.00
3.000%
8/1/2037
220,000.00
3.000%
8/1/2038
225,000.00
3.000%
8/1/2039
235,000.00
3.000%
8/1/2040
240,000.00
3.000%
3,540,000.00
$
155,000.00
$
3,385,000.00
$
1,255,000.00
$
4,790,000.00
$
210,000.00
$
1,200,000.00
$
4,635,000.00
$
Ref.
D
D
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF WATER CAPITAL SERIAL BONDS
(Continued)
D-14
2 of 2
D-15
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Bond
Bond
Anticipation
Anticipation
Improvement
Ord.
Balance
Serial Bonds
Notes
Notes Paid by
Authorizations
Balance
No.
Improvement Description
Dec. 31, 2020
Issued
Reappropriation
Redeemed
Bond Premium
Cancelled
Dec. 31, 2021
11-15
Various Water Improvements
100,000.00
$
108,094.00
$
8,094.00
$
15-16
Various Water Improvements
630,000.00
639,239.00
9,239.00
09-17
Various Water Improvements
700,000.00
705,737.00
5,737.00
07-18
Various Water Improvements
930,000.00
(85,884.00)
$
1,022,470.00
6,586.00
11-19
Various Water Improvements
580,000.00
(330,598.00)
918,540.00
7,942.00
07-20
Various Water Improvements
40,000.00
(180,000.00)
223,460.00
3,460.00
14-20
Water Main Improvements
500,000.00
500,000.00
15-20
Refunding Bonds Ordinance
1,270,000.00
$
1,250,000.00
20,000.00
$
20-21
Installation of Water Meters and Equipment
60,000.00
596,482.00
536,482.00
1,270,000.00
$
4,790,000.00
$
- 0 -
$
4,117,540.00
$
577,540.00
$
20,000.00
$
- 0 -
$
D-15
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
SEWER UTILITY FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2021
PUBLIC ASSISTANCE FUND
NOT APPLICABLE
BOROUGH OF ROCKAWAY
PART II
SINGLE AUDIT
YEAR ENDED DECEMBER 31, 2021
Schedule 1
State
Grant
Amount
Federal
Assistance
Pass Through
Grant
Grant Period
Award
Grant
Amount of
Cumulative
Paid to
Federal Funding Department/Cluster Cluster
Program
Listing
Entity ID
Name
From
To
Amount
Receipts
Expenditures
Expenditures
Subrecipients
U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
(Passed Through County of
Community
14.218
N/A
Sanitary Sewer
Morris Department of Community
Development
Rehabilitation
Development)
Block Grants
Project
01/01/19
12/31/20
80,000.00
$
80,000.00
$
80,000.00
$
14.218
N/A
Stone Arch
Culvert
01/01/18
12/31/20
80,000.00
65,185.90
128,875.90
$
128,875.90
Total Department of Housing and Urban Development
145,185.90
128,875.90
208,875.90
U.S. Department of Homeland Security:
Disaster Grants - Public
97.036
100-066-1200-
Hazard Mitigation
(Passed through New Jersey Department
Assistance - F.E.M.A.
C73-069820
Grant Program
of Law and Public Safety)
Tropical Storm Isaias
08/04/20
12/31/21
27,013.93
27,013.93
27,013.93
*
27,013.93
Total U.S. Department of Homeland Security
27,013.93
27,013.93
27,013.93
U.S. Department of Transportation
Highway Safety Cluster
(Passed through New Jersey
Click it or Ticket
20.600
100-066-1160-
N/A
Department of Law & Public Safety)
119-031750
01/01/21
12/31/21
6,000.00
6,000.00
6,000.00
6,000.00
(Passed through New Jersey
Drive Sober or Get
20.616
100-066-1160-
Department of Law & Public Safety)
Pulled Over
157-031020
N/A
01/01/21
12/31/21
6,000.00
5,490.00
5,490.00
5,490.00
Total Department of Transportation
11,490.00
11,490.00
11,490.00
U.S. Department of Justice:
Bulletproof Vest
Office of Justice Program
Partnership Grant
16.607
N/A
N/A
01/01/19
12/31/21
1,735.98
1,735.98
1,735.98
Total Department of Justice
1,735.98
1,735.98
U.S. Department of Treasury:
(Passed through New Jersey Department
COVID-19 - American
100-022-8030-
of Community Affairs)
Rescue Plan Act
21.027
687-046010
N/A
03/03/21
12/31/24
656,900.00
328,449.92
109,171.00
109,171.00
Total U.S. Department of Treasury
328,449.92
109,171.00
109,171.00
TOTAL FEDERAL AWARDS
512,139.75
$
278,286.81
$
358,286.81
$
- 0 -
$
* - Expended in prior years.
N/A - Not Available/Applicable
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2021
SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
1
Schedule 2
1 of 2
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2021
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-
07/01/19
06/30/21
11,256.00
$
4,991.24
$
11,256.00
$
Alcoholism and Drug Abuse
Alcoholism and Drug Abuse
044-995120
07/01/20
06/30/22
9,256.00
824.76
6,201.33
$
6,633.18
Subtotal - Department of Treasury
5,816.00
6,201.33
17,889.18
Department of Transportation:
Municipal Aid -
18-480-078-
Hoagland Avenue
6320-AM2-6010
01/01/18
12/31/19
305,000.00
48,722.38
305,000.00
Municipal Aid -
18-480-078-
Elycroft Avenue
6320-AM2-6010
01/01/19
12/31/21
166,000.00
46,896.72
46,896.72
153,584.02
Municipal Aid -
21-480-078-
Mannino-Nichols Drive
6320-10-AOP-6010
01/01/20
12/31/22
247,900.00
116,637.44
10,084.91
10,084.91
Subtotal - Department of Transportation
212,256.54
56,981.63
458,584.02
Department of Environmental
Clean Communities Act
765-042-4900-
Protection
004-V42Y-6020
01/01/19
12/31/21
13,524.27
4,476.20
13,524.27
01/01/20
12/31/21
12,194.36
12,194.36
12,194.36
01/01/21
12/31/22
12,978.96
12,978.96
225.50
225.50
12,978.96
16,896.06
25,944.13
Recycling Tonnage Grant
752-042-4900-
01/01/18
12/31/21
10,604.00
8,018.55
01/01/21
12/31/22
8,635.06
8,635.66
2,935.00
2,935.00
8,635.66
2,935.00
10,953.55
Subtotal - Department of Environmental Protection
21,614.62
19,831.06
36,897.68
2
Schedule 2
2 of 2
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2021
(Continued)
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 Law and Public
Body Armor
1020-718-066-
01/01/18
12/31/21
1,864.98
$
1,564.30
$
1,864.98
$
Safety
Replacement Fund
1020-001-6120
01/01/19
12/31/21
1,842.95
1,842.95
1,842.95
01/01/20
12/31/22
1,482.12
1,482.12
$
1,482.12
3,407.25
3,707.93
Drunk Driving
100-078-6400-
01/01/13
12/31/21
16,569.69
846.63
15,609.01
Enforcement Fund
260-YYYY
846.63
15,609.01
Safe and Secure
100-066-1020-
01/01/20
12/31/21
29,407.00
22,055.25
29,407.00
Communities
232-YCJF
01/01/21
12/31/22
15,880.00
3,970.00
15,880.00
15,880.00
26,025.25
15,880.00
45,287.00
Subtotal - Department of Law and Public Safety
27,507.37
20,133.88
64,603.94
TOTAL STATE AWARDS
267,194.53
$
103,147.90
$
577,974.82
$
SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
3
BOROUGH OF ROCKAWAY
NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED DECEMBER 31, 2021
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, 2021. 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.
4
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 years
ended December 31, 2021 and 2020, and the related notes to the financial statements and have issued our report
thereon dated March 25, 2022. 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.
Report on 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) as a basis for designing 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 Township’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 identified a certain deficiency in internal control, described in the accompanying
Schedule of Findings and Responses as Finding 2021-001, that we consider to be a significant deficiency.
5
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 2
Report on 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 financial statements.
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
Government Auditing Standards requires the auditor to perform limited procedures on the Borough’s response to
the finding identified in our audit and described in the accompanying Schedule of Findings and Responses. The
Borough’s response was not subjected to the other auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the 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 28, 2021
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
6
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2021
Summary of Auditors' Results:
-
The Independent Auditors’ Report expresses an unmodified 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.
-
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, 2021 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 2021-001
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
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.
7
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2021
(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 2021-001 (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.
8
BOROUGH OF ROCKAWAY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2021
The Borough’s prior year audit finding 2020-001 regarding segregation of duties has not been resolved due to
budgetary constraints and is included as finding 2021-001.
9
BOROUGH OF ROCKAWAY
PART III
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2021
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, 2020 and thereafter, the bid thresholds in accordance with N.J.S.A. 40A:11-3 are $17,500 for a
contracting unit without a qualified purchasing agent and $44,000 for a contracting unit with a qualified purchasing
agent.
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.
10
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 4, 2021, 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, 2021, at the rate or rates heretofore governing, and
on all delinquents on and after January 1, 2021 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
and utility charges 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
2021
15
2020
15
2019
13
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.
11
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 2021 and 2022 Taxes
20
Delinquent Taxes
15
Tax Title Liens
5
Payment of 2021 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 Council 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.
12
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
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, 2021.
RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
Balance
Balance
Dec. 31, 2020
Receipts
Disbursements
Dec. 31, 2021
Municipal Treasurer:
Fines and Fees
2,344.82
$
35,618.18
$
36,396.47
$
1,566.53
$
Parking Offense Adjudication Act
10.00
10.00
Interest:
Regular Account
3.06
3.06
Bail Account
0.47
0.47
Municipal Treasurer - Shared Court:
Public Defender
1,115.00
915.00
200.00
State Treasurer
1,487.38
23,040.51
22,974.49
1,553.40
County Treasurer
1,105.50
13,465.50
13,868.50
702.50
Weights and Measures
7,132.00
7,132.00
Conditional Dismissal
55.00
55.00
Bail Account
250.00
5,130.00
3,480.00
1,900.00
5,187.70
$
85,569.72
$
84,834.99
$
5,922.43
$
Management Suggestions
Grants Receivable
During our review of federal and state grants, we noted that there are still a few grants receivable that are 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.
Governmental Accounting Standards Board (GASB) Statements
GASB Statement No. 87, Leases, is effective for the year ended December 31, 2022. Previously leases were either
categorized as capital leases or operating leases. This statement will likely affect most leases formerly classified as
operating leases. There will be required disclosures for leases for which the Borough is either a lessee or a lessor
although there will be no impact on the actual financial statements. It is likely that a lease software or similar
spreadsheets will need to be utilized to perform the various calculations necessary to implement this standard.
13
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Management Suggestions (Cont'd)
COVID-19 Federal Funding
It is possible that the Borough will undergo some review of its COVID-19 funding by the federal government. We
strongly suggest that the Borough ensures that these funds are utilized in accordance with the applicable federal
requirements especially with respect to procurement. Additionally, we strongly suggest that the Borough ensures
that these funds are separately accounted for in the Borough’s accounting records and that any applicable Borough
policies are current with respect to federal grant requirements.
Because of the nature of these funds, being new programs, generally of a significant dollar amount, and some of
which may be expended over a period of years, they may be subject to federal or state audit several years from now.
It is important that the grant files maintained by local governments be complete, self-explanatory, and fully
document the program(s) undertaken as part of the funding.
Status of Prior Year Recommendations
The Borough has initiated a corrective action plan to resolve comments and recommendations from the 2020 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.
14
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.
15
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"...Water Clerk from 01/01/22 (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 R..."
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