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2023 Report of Audit
BID #: N/A
ISSUED: 5/13/2024
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Executive Summary
The Borough of Rockaway's 2023 Audit Report presents the financial position of its various funds and account groups as of December 31, 2023 and 2022. The audit expresses unmodified opinions on the regulatory basis financial statements, indicating fair presentation in accordance with accounting practices prescribed by the Division of Local Government Services. An adverse opinion is given regarding U.S. Generally Accepted Accounting Principles due to the Borough's adherence to the Division's regulatory basis of accounting.
Key financial areas covered include the Current Fund, Trust Funds, General Capital Fund, Water Utility Fund (Operating and Capital), and the General Fixed Assets Account Group. The report includes detailed schedules of assets, liabilities, fund balances, revenues, and expenditures for each fund. The audit also assesses compliance with laws, regulations, contracts, and grant agreements, with no material instances of noncompliance noted. However, a significant deficiency was noted in the segregation of duties within the recording and treasury functions. The report was issued on May 13, 2024.
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--- Document: 2023 Report of Audit Document ---
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2023
NISIVOCCIA LLP
CERTIFIED PUBLIC ACCOUNTANTS
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
REPORT OF AUDIT
2023
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2023
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
E
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 User Fees Receivable
A-10
Schedule of 2022 Appropriation Reserves
A-11
Schedule of Local School District Taxes Payable
A-12
Schedule of Regional High School District Taxes Payable
A-13
Schedule of Federal and State Grants Receivable
A-14
Schedule of Unappropriated Grant Reserves
A-15
Schedule of Appropriated Grant Reserves
A-16
BOROUGH OF ROCKAWAY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
PART I – Financial Statements and Supplementary Data (Cont’d)
Supplementary Data (Cont’d)
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 2022 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 (Not Applicable)
D-13
Schedule of Serial Bonds Payable
D-14
Schedule of Bonds and Notes Authorized But Not Issued (Not Applicable)
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
2-4
Notes to the Schedule of Expenditures of Federal and State Awards
5
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
6-7
Schedule of Findings and Responses
8-9
Summary Schedule of Prior Audit Findings
10
PART III – Comments and Recommendations
Page
Comments and Recommendations
11-15
Summary of Recommendations
16
BOROUGH OF ROCKAWAY
PART I
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
YEAR ENDED DECEMBER 31, 2023
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, 2023 and 2022,
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, 2023 and 2022, 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, 2023 and 2022,
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 States 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 and audit requirements
prescribed by the Division 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 and audit requirements
prescribed by the Division, 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.
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.
2
The Honorable Mayor and Members
of the Borough Council
Borough of Rockaway
Page 3
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 Borough’s financial statements. The supplementary data schedules
listed in the table of contents and the schedules of expenditures of federal and state awards, as required by Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (“Uniform Guidance”) and New Jersey’s OMB Circular 15-08, Single Audit
Policy for Recipients of Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis
and are not a required part of the financial statements. 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 May 13, 2024 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
May 13, 2024
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
3
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
CURRENT FUND
A
1 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
Ref.
2023
2022
ASSETS
Regular Fund:
Cash and Cash Equivalents:
Treasurer
A-4
7,631,940.67
$
7,221,304.08
$
Change Fund
100.00
100.00
7,632,040.67
7,221,404.08
Receivables and Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-7
249,890.75
239,860.23
Sewer User Fees Receivable
A-10
52,550.91
63,414.34
Tax Title Liens Receivable
A-8
1,357,756.94
1,285,098.06
Property Acquired for Taxes at Assessed Valuation
961,500.00
961,500.00
Revenue Accounts Receivable
A-9
1,248.82
1,016.74
Grants Receivable
A-14
48,329.53
64,570.93
Total Receivables and Other Assets With Full Reserves
2,671,276.95
2,615,460.30
TOTAL ASSETS
10,303,317.62
$
9,836,864.38
$
December 31,
A
2 of 2
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
Ref.
2023
2022
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Appropriation Reserves:
Encumbered
A-3;A-11
317,293.26
$
292,984.47
$
Unencumbered
A-3;A-11
778,343.53
814,083.47
1,095,636.79
1,107,067.94
Accounts Payable - Vendors
26,905.35
34,345.10
Sewer User Fee Overpayments
6,542.20
County Added and Omitted Taxes Payable
817.96
4,848.26
Due to State of New Jersey:
Senior Citizens' and Veterans' Deductions
11,731.28
11,731.28
Marriage License Fees
125.00
Lead Fees
120.00
Construction Code Surcharge Fees
2,598.00
1,923.00
Prepaid Taxes
161,348.84
119,310.49
Due to Other Trust Funds
B
77,541.18
Due to General Capital Fund
C
34,646.00
Reserve for Appropriated Grants:
Encumbered
A-16
88,554.80
38,430.80
Unencumbered
A-16
86,637.57
498,383.94
Reserve for Unappropriated Grants
A-15
7,356.22
1,359.48
Reserve for:
Revaluation of Real Property
2,160.00
2,160.00
Master Plan
2,130.00
6,095.00
Sale of Municipal Assets
559,311.00
559,311.00
Pending Tax Appeals
750,000.00
650,000.00
Sewer Maintenance
1,062,851.43
943,263.86
Municipal Relief Fund Aid
57,054.90
28,533.38
3,999,422.52
4,041,409.53
Reserve for Receivables and Other Assets
A
2,671,276.95
2,615,460.30
Fund Balance
A-1
3,632,618.15
3,179,994.55
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
10,303,317.62
$
9,836,864.38
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
December 31,
A-1
BOROUGH OF ROCKAWAY
CURRENT FUND
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE -
REGULATORY BASIS
Year Ended December 31,
Ref.
2023
2022
Revenue and Other Income Realized
Fund Balance Utilized
575,000.00
$
550,000.00
$
Miscellaneous Revenue Anticipated
2,163,333.17
2,093,101.05
Receipts from:
Delinquent Taxes
239,831.14
201,011.04
Current Taxes
25,435,151.30
25,223,881.99
Nonbudget Revenue
360,152.76
434,117.50
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
375,060.72
420,227.65
Decrease in Grants Receivable
16,241.40
25,105.48
Cancellation of Appropriated Grant Reserves
8,529.78
Total Income
29,164,770.49
28,955,974.49
Expenditures
Budget and Emergency Appropriations:
Municipal Purposes
9,579,990.13
9,422,527.40
Local School District Taxes
9,255,675.00
9,385,515.00
County Taxes
2,337,348.54
2,228,716.66
County Share of Added Taxes
817.96
4,848.26
Regional School District Taxes
6,790,887.00
6,710,059.00
Cancellation of Grants Receivable
11,682.84
Reserve for Pending Tax Appeals
172,428.26
Total Expenditures
28,137,146.89
27,763,349.16
Excess in Revenue/Statutory Excess to Fund Balance
1,027,623.60
1,192,625.33
Fund Balance
Balance January 1
3,179,994.55
2,537,369.22
4,207,618.15
3,729,994.55
Decreased by:
Utilized as Anticipated Revenue
575,000.00
550,000.00
Balance December 31
A
3,632,618.15
$
3,179,994.55
$
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, 2023
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Fund Balance Anticipated
575,000.00
$
575,000.00
$
Miscellaneous Revenue:
Alcoholic Beverage Licenses
20,000.00
20,460.00
460.00
$
Other Licenses
18,000.00
61,527.21
43,527.21
Fees and Permits
64,500.00
73,092.49
8,592.49
Municipal Court - Fines and Costs
40,000.00
22,201.90
17,798.10
*
Interest and Costs on Taxes
48,219.00
77,349.56
29,130.56
Energy Receipts Tax (P.L. 1998, Chapters 162 & 167)
550,776.00
550,776.02
0.02
Reserve for Municipal Relief Funds
28,533.38
28,533.38
Uniform Construction Code Fees
125,000.00
159,169.00
34,169.00
Shared Service Agreement:
Morris Hills Regional School Resource Officer
77,500.00
77,500.00
Uniform Fire Safety Fees
30,000.00
30,893.25
893.25
Sewer User Fees
680,000.00
768,237.65
88,237.65
General Capital Fund Balance
80,314.10
80,314.10
Reserve for Sewer Maintenance
31,000.00
31,000.00
Recycling Tonnage Grant
5,825.00
4,084.66
$
9,909.66
Clean Communities
11,500.00
11,500.00
Body Armor Replacement
1,359.48
1,359.48
Safe and Secure Communities Grant
15,228.00
15,228.00
Municipal Alliance Grant
4,221.00
2,000.00
6,221.00
NJDEP/JEDA Hazardous Discharge Site Remediation
123,060.47
123,060.47
NJ Stormwater Management Planning Assistance Grant
15,000.00
15,000.00
Total Miscellaneous Revenues
1,831,975.96
144,145.13
2,163,333.17
187,212.08
A-2
1 of 3
A-2
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Added by
Excess or
Budget
NJSA 40A:4-87
Realized
Deficit *
Receipts from Delinquent Taxes
200,000.00
$
239,831.14
$
39,831.14
$
Amount to be Raised by Taxes for Support of Municipal Budget:
Local Tax for Municipal Purposes
7,070,647.04
7,292,145.80
221,498.76
Minimum Library Tax
303,277.00
303,277.00
7,373,924.04
7,595,422.80
221,498.76
Budget Totals
9,980,900.00
144,145.13
$
10,573,587.11
448,541.98
Nonbudget Revenue
360,152.76
360,152.76
9,980,900.00
$
144,145.13
$
10,933,739.87
$
808,694.74
$
A-2
2 of 3
A-2
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Allocation of Current Tax Collections:
Revenue from Collection of Current Taxes
25,435,151.30
$
Allocated to:
Local School District Taxes
9,255,675.00
$
Regional High School Taxes
6,790,887.00
County Taxes
2,338,166.50
18,384,728.50
Balance for Support of Municipal Budget
7,050,422.80
Add: Appropriation "Reserve for Uncollected Taxes"
545,000.00
Realized for Support of Municipal Budget
7,595,422.80
$
Receipts from Delinquent Taxes:
Delinquent Tax Collections
239,831.14
$
Analysis of Nonbudget Revenue:
Treasurer:
Cable Television Franchise Fees
87,639.31
$
Prior Year Police Outside Duty Administrative Fees
165,849.19
Hotel Tax
29,250.06
NJ Senior Citizens & Veterans Deductions - Admin. Fee
665.00
Construction Code Penalties
145.00
Interest on Investments
19,460.41
Cannabis Fees
5,000.00
Cannabis Quarterly Tax Payments
20,859.28
Prior Year Refunds
14,891.43
Other Miscellaneous
7,952.94
351,712.62
$
Tax Collector - Other Miscellaneous Revenue
125.00
Interest Earned in Other Trust Funds
2,962.88
Interest Earned in Animal Control Fund
54.71
Interest Earned in General Capital Fund
5,297.55
360,152.76
$
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, 2023
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
GENERAL GOVERNMENT:
General Administration:
Salaries & Wages
42,550.00
$
42,550.00
$
42,550.00
$
Other Expenses
32,375.00
32,375.00
29,484.11
2,890.89
$
Mayor & Council:
Salaries & Wages
32,000.00
32,000.00
32,000.00
Other Expenses
1,800.00
1,800.00
1,161.25
638.75
Municipal Clerk:
Salaries & Wages
58,800.00
58,800.00
34,326.98
24,473.02
Other Expenses
22,760.00
22,760.00
22,760.00
Financial Administration:
Salaries & Wages
105,000.00
105,000.00
103,082.00
1,918.00
Other Expenses
24,820.00
24,820.00
13,163.37
11,656.63
Audit
26,500.00
26,500.00
3,000.00
23,500.00
Tax Assessment Administration:
Salaries & Wages
22,000.00
22,000.00
21,754.70
245.30
Other Expenses
5,050.00
5,050.00
4,144.85
905.15
Revenue Administration (Tax Collection):
Salaries & Wages
66,500.00
66,500.00
66,462.45
37.55
Other Expenses
18,025.00
18,025.00
14,737.19
3,287.81
Legal Services and Costs:
Other Expenses
121,700.00
116,700.00
73,652.35
43,047.65
Engineering Services:
Other Expenses
35,000.00
35,000.00
34,557.25
442.75
LAND USE ADMINISTRATION:
Municipal Land Use Law (N.J.S.A. 40A:55D-1):
Land Use Board:
Salaries & Wages
25,250.00
25,250.00
25,250.00
Other Expenses
2,700.00
2,700.00
770.42
1,929.58
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
LAND USE ADMINISTRATION (Continued):
Zoning Commission:
Salaries & Wages
16,500.00
$
16,500.00
$
16,181.83
$
318.17
$
Other Expenses
2,200.00
2,200.00
670.75
1,529.25
Planning Board:
Other Expenses
20,000.00
20,000.00
18,980.00
1,020.00
Insurance:
Employee Group Insurance
663,339.00
657,539.00
467,681.55
189,857.45
Workers' Compensation
66,000.00
66,000.00
63,934.90
2,065.10
General Liability Insurance
135,950.00
135,950.00
109,622.70
26,327.30
Health Benefit Waiver
15,000.00
20,800.00
20,625.00
175.00
Unemployment Insurance
7,500.00
7,500.00
7,500.00
PUBLIC SAFETY:
Volunteer Fire/Ambulance:
Other Expenses
92,150.00
92,150.00
88,267.60
3,882.40
Uniform Fire Safety Act (P.L. 1983, Ch. 383):
Fire Prevention Bureau:
Salaries & Wages
53,100.00
53,200.00
53,178.15
21.85
Other Expenses
5,000.00
5,000.00
4,101.20
898.80
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
2,336,225.00
2,336,225.00
2,336,225.00
Other Expenses
148,450.00
148,450.00
138,840.62
9,609.38
Alarm System - Police and Fire:
Other Expenses
133,600.00
133,600.00
133,593.61
6.39
PUBLIC WORKS:
Road Repair and Maintenance:
Salaries & Wages
412,500.00
412,500.00
341,593.21
70,906.79
Other Expenses
182,105.00
182,105.00
132,416.13
49,688.87
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
PUBLIC WORKS:
Other Public Works:
Other Expenses
6,000.00
$
6,000.00
$
1,670.30
$
4,329.70
$
Shade Tree Commission:
Other Expenses
25,000.00
25,000.00
24,782.48
217.52
Solid Waste Disposal:
Salaries & Wages
39,500.00
39,500.00
39,346.65
153.35
Other Expenses
795,950.00
810,950.00
807,431.25
3,518.75
Sewer:
Salaries & Wages
154,500.00
154,500.00
154,500.00
Other Expenses
32,000.00
32,000.00
26,500.00
5,500.00
Public Building and Grounds:
Other Expenses
91,045.00
91,045.00
76,770.08
14,274.92
Vehicle Maintenance:
Other Expenses
55,500.00
55,500.00
50,295.11
5,204.89
HEALTH AND WELFARE:
Board of Health:
Salaries & Wages
3,150.00
3,150.00
3,150.00
Other Expenses
154,660.00
154,660.00
143,633.73
11,026.27
Senior Citizens' Programs:
Other Expenses
5,000.00
5,000.00
5,000.00
RECREATION AND EDUCATION:
Board of Recreation Commissioners:
Salaries & Wages
91,500.00
91,500.00
89,741.91
1,758.09
Other Expenses
47,220.00
47,220.00
31,647.02
15,572.98
Maintenance of Parks:
Other Expenses
42,500.00
42,500.00
41,177.80
1,322.20
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
UNIFORM CONSTRUCTION CODE:
Uniform Construction Code Enforcement:
Salaries & Wages
28,700.00
$
28,700.00
$
28,700.00
$
Other Expenses
2,500.00
2,500.00
2,500.00
Construction Code Official:
Salaries & Wages
44,100.00
44,400.00
44,400.00
Other Expenses
4,640.00
4,640.00
4,277.13
362.87
$
UNCLASSIFIED:
Utilities:
Gasoline and Diesel
50,000.00
50,000.00
34,060.02
15,939.98
Electricity
45,000.00
45,000.00
41,692.37
3,307.63
Natural Gas
16,000.00
16,000.00
13,565.11
2,434.89
Street Lighting
84,000.00
84,000.00
82,326.34
1,673.66
Telephone
25,000.00
25,000.00
21,183.58
3,816.42
Celebration of Public Events:
Other Expenses
16,200.00
16,200.00
13,700.00
2,500.00
Salary Adjustments
23,587.17
13,187.17
1,000.00
12,187.17
Total Operations Within "CAPS"
6,823,501.17
6,823,501.17
6,242,119.97
581,381.20
Contingent
500.00
500.00
500.00
Total Operations including Contingent within "CAPS"
6,824,001.17
6,824,001.17
6,242,119.97
581,881.20
Detail:
Salaries & Wages
3,560,462.17
3,550,462.17
3,438,442.80
112,019.37
Other Expenses
3,263,539.00
3,273,539.00
2,803,677.17
469,861.83
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
DEFERRED CHARGES AND STATUTORY EXPENDITURES:
Statutory Expenditures:
Public Employee's Retirement System
177,234.00
$
177,234.00
$
164,263.62
$
12,970.38
$
Contribution to Social Security System (O.A.S.I.)
135,500.00
135,500.00
131,301.09
4,198.91
Police and Fireman's Retirement System of NJ
596,624.00
596,624.00
596,624.00
Defined Contribution Retirement Plan
10,000.00
10,000.00
8,067.90
1,932.10
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
919,358.00
919,358.00
900,256.61
19,101.39
Total General Appropriations for Municipal Purposes Within "CAPS"
7,743,359.17
7,743,359.17
7,142,376.58
600,982.59
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)
303,277.00
303,277.00
297,887.06
5,389.94
Employee Group Insurance (P.L. 2007, C.62)
21,961.00
21,961.00
21,961.00
Sewerage Processing and Disposal (RVRSA)
330,000.00
330,000.00
330,000.00
SHARED SERVICE AGREEMENTS:
Township of Parsippany-Troy Hills - Municipal Court
85,000.00
85,000.00
82,804.00
2,196.00
Morris Hills Regional High School District - Resource Officers:
Police:
Salaries & Wages
77,500.00
77,500.00
77,500.00
STATE AND FEDERAL PROGRAMS OFFSET BY REVENUES:
Clean Communities Grant
11,500.00
11,500.00
11,500.00
Municipal Alliance Grant (N.J.S.A 40A:4-87, + $2,000.00)
4,221.00
6,221.00
6,221.00
Municipal Alliance Grant - Local Match
1,055.25
1,055.25
1,055.25
Safe and Secure Communities Grant:
Police:
Salaries & Wages
15,228.00
15,228.00
15,228.00
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
STATE AND FEDERAL PROGRAMS OFFSET BY REVENUES:
Body Armor Grant
1,359.48
$
1,359.48
$
1,359.48
$
Recycling Tonnage Grant (N.J.S.A. 40A:4-87, + $4,084.66)
5,825.00
9,909.66
9,909.66
NJ Stormwater Management Planning Assistance Grant
(N.J.S.A. 40A:4-87, + $15,000.00)
15,000.00
15,000.00
NJDEP/NJEDA - Hazardous Discharge Site Remediation
(N.J.S.A. 40A:4-87, + $123,060.47)
123,060.47
123,060.47
Total Operations Excluded from "CAPS"
876,926.73
1,021,071.86
993,485.92
27,585.94
$
Detail:
Salaries & Wages
92,728.00
92,728.00
92,728.00
Other Expenses
784,198.73
928,343.86
900,757.92
27,585.94
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS":
Capital Improvement Fund
32,000.00
32,000.00
32,000.00
Fire Equipment
10,400.00
10,400.00
10,400.00
Sewer Capital Improvements
125,000.00
125,000.00
125,000.00
Administration Technology Equipment
8,000.00
8,000.00
3,225.00
4,775.00
Recreation Equipment/ Improvements
25,000.00
25,000.00
5,000.00
20,000.00
Total Capital Improvements - Excluded from "CAPS"
200,400.00
200,400.00
50,625.00
149,775.00
MUNCIPAL DEBT SERVICE - EXCLUDED FROM "CAPS":
Payment of Bond Principal
310,000.00
310,000.00
310,000.00
Payment of Bond Anticipation Notes and Capital Notes
80,314.10
80,314.10
80,314.10
Interest on Bonds
205,000.00
205,000.00
205,000.00
Interest on Notes
19,900.00
19,900.00
19,845.00
55.00
$
Total Municipal Debt Service - Excluded from "CAPS"
615,214.10
615,214.10
615,159.10
55.00
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, 2023
(Continued)
Expended By
Unexpended
Budget After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
Total General Appropriations - Excluded from "CAPS"
1,692,540.83
$
1,836,685.96
$
1,659,270.02
$
177,360.94
$
55.00
$
Subtotal General Appropriations
9,435,900.00
9,580,045.13
8,801,646.60
778,343.53
55.00
Reserve for Uncollected Taxes
545,000.00
545,000.00
545,000.00
Total General Appropriations
9,980,900.00
$
10,125,045.13
$
9,346,646.60
$
778,343.53
$
55.00
$
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, 2023
(Continued)
Ref.
Analysis of
Budget After
Paid or
Modification
Charged
Adopted Budget
9,980,900.00
$
Added by N.J.S.A. 40A:4-87
144,145.13
10,125,045.13
$
Reserve for Uncollected Taxes
545,000.00
$
Reserve for Encumbrances
A
317,293.26
Reserve for Sewer Maintenance
25,587.57
Transferred to Federal and State Appropriated Grants
183,333.86
Cash Disbursed
8,523,588.64
9,594,803.33
Less: Appropriation Refunds
248,156.73
9,346,646.60
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
TRUST FUNDS
B
1 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
Ref.
2023
2022
ASSETS
Animal Control Fund:
Cash and Cash Equivalents:
Cash - Treasurer
B-4
15,494.05
$
20,145.87
$
Due From State of New Jersey:
Board of Health
7.20
15,501.25
20,145.87
Other Trust Funds:
Cash and Cash Equivalents
B-4
1,535,292.69
1,592,045.44
Due from Current Fund
A
77,541.18
1,612,833.87
1,592,045.44
TOTAL ASSETS
1,628,335.12
$
1,612,191.31
$
LIABILITIES, RESERVES AND FUND BALANCE
Animal Control Fund:
Due to State of New Jersey:
Board of Health
57.60
$
Prepaid Animal Licenses
810.60
Reserve for Animal Control Expenditures
B-6
15,501.25
$
19,277.67
15,501.25
20,145.87
December 31,
B
2 of 2
BOROUGH OF ROCKAWAY
COMPARATIVE BALANCE SHEET - TRUST FUNDS - REGULATORY BASIS
Ref.
2023
2022
LIABILITIES, RESERVES AND FUND BALANCE (Cont'd)
Other Trust Funds:
Reserve for:
Tax Sale Premiums
28,900.00
$
Council on Affordable Housing
120,120.20
120,120.20
$
State Unemployment Insurance
154,069.19
144,893.14
Accumulated Absences
242,673.40
225,793.66
Trust Escrow
219,998.81
157,359.34
Addison Hills Escrow
9,582.17
9,568.54
Forfeited Assets
31,546.58
31,468.92
Recycling
44,518.37
40,807.02
Tree Replacement
11,409.12
11,409.12
Parking Offenses Adjudication Act
1,066.90
1,028.90
Public Defender
20,114.96
19,482.96
D.A.R.E.
1,407.75
1,575.75
Vital Life
1,000.00
1,000.00
State of NJ Housing
772.77
772.77
Police Donations
5,195.00
5,195.00
National Night Out
2,835.42
4,361.38
Fire Prevention
27,800.38
25,506.79
Police Outside Duty
67,081.84
164,501.37
Recreation
72,137.64
68,698.50
Storm Recovery
550,603.37
558,502.08
1,612,833.87
1,592,045.44
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
1,628,335.12
$
1,612,191.31
$
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, 2023
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, 2023
NOT APPLICABLE
B-3
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2023
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
GENERAL CAPITAL FUND
C
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
Ref.
2023
2022
ASSETS
Cash and Cash Equivalents
C-2
2,223,951.98
$
2,535,213.78
$
Due from Current Fund
A
34,646.00
Grant Receivable:
NJ Department of Transportation
123,403.75
457,961.31
Local Recreation Improvement Grant
75,000.00
Deferred Charges to Future Taxation:
Funded
4,440,000.00
4,750,000.00
Unfunded
C-4
993,202.00
468,227.00
TOTAL ASSETS
7,780,557.73
$
8,321,048.09
$
LIABILITIES, RESERVES AND FUND BALANCE
Bond Anticipation Notes Payable
C-7
993,202.00
$
468,227.00
$
Serial Bonds Payable
C-8
4,440,000.00
4,750,000.00
Improvement Authorizations:
Funded
C-5
1,177,041.00
1,888,228.44
Unfunded
C-5
777,883.95
320,991.75
Capital Improvement Fund
C-6
277,728.39
628,262.14
Reserve to Pay Debt Service
C-3
1,033.63
Fund Balance
C-1
113,668.76
265,338.76
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
7,780,557.73
$
8,321,048.09
$
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, 2022
C
265,338.76
$
Decreased by:
Anticipated Revenue in 2023 Budget
80,314.10
$
Reinstate to Reserve to Pay Debt Service
71,355.90
151,670.00
Balance December 31, 2023
C
113,668.76
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
WATER UTILITY FUND
D
1 of 2
Ref.
2023
2022
ASSETS
Operating Fund:
Cash and Cash Equivalents:
Treasurer
D-4
946,521.53
$
859,454.74
$
Change Fund
100.00
100.00
946,621.53
859,554.74
Receivables and Other Assets with Full Reserves:
Consumer Accounts Receivable
D-6
238,238.88
244,728.56
Total Operating Fund
1,184,860.41
1,104,283.30
Capital Fund:
Cash and Cash Equivalents
D-4
1,902,833.41
1,870,763.68
Due From County of Morris:
Community Development Block Grant Receivable
125,000.00
Fixed Capital
D-7
9,208,947.42
9,202,066.83
Fixed Capital Authorized and Uncompleted
D-8
5,577,125.42
4,784,725.42
Total Capital Fund
16,813,906.25
15,857,555.93
TOTAL ASSETS
17,998,766.66
$
16,961,839.23
$
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31
D
2 of 2
Ref.
2023
2022
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Appropriation Reserves:
Unencumbered
D-3; D-9
177,293.59
$
88,887.12
$
Encumbered
D-3; D-9
81,577.97
138,159.36
258,871.56
227,046.48
Accounts Payable
14,103.13
14,103.13
Accrued Interest on Bonds
56,898.98
59,108.25
Water Rent Overpayments
12,235.32
1,096.90
Reserve for Carbon Filter Replacement
60,000.00
60,000.00
402,108.99
361,354.76
Reserve for Receivables
D
238,238.88
244,728.56
Fund Balance
D-1
544,512.54
498,199.98
Total Operating Fund
1,184,860.41
1,104,283.30
Capital Fund:
Serial Bonds Payable
D-14
4,235,000.00
4,435,000.00
Improvement Authorizations:
Funded
D-10
1,779,342.11
1,568,272.38
Capital Improvement Fund
D-11
121,112.04
135,112.04
Reserve for Water Capital Improvements
110,063.08
150,063.08
Deferred Reserve for Amortization
D-12
1,152,400.00
360,000.00
Reserve for Amortization
D-12A
9,398,672.84
9,191,792.25
Fund Balance
D-1A
17,316.18
17,316.18
Total Capital Fund
16,813,906.25
15,857,555.93
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
17,998,766.66
$
16,961,839.23
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
December 31
BOROUGH OF ROCKAWAY
WATER UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
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.
2023
2022
Revenue and Other Income Realized
Fund Balance Utilized
250,000.00
$
250,000.00
$
Water Rents
2,248,175.36
2,258,807.45
Miscellaneous
20,266.45
20,838.98
Reserve for Carbon Filter Replacement
60,000.00
Nonbudget Revenue
13,751.67
13,571.66
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
29,409.49
41,256.31
Total Income
2,621,602.97
2,584,474.40
Expenditures
Budget Expenditures:
Operating
1,688,011.00
1,587,945.00
Capital Improvements
204,000.00
283,000.00
Debt Service
339,499.41
344,679.33
Deferred Charges and Statutory Expenditures
93,780.00
91,500.00
Total Expenditures
2,325,290.41
2,307,124.33
Excess in Revenue
296,312.56
277,350.07
Fund Balance
Balance January 1
D
498,199.98
470,849.91
794,512.54
748,199.98
Decreased by:
Utilized by Water Utility Operating Budget
250,000.00
250,000.00
Balance December 31
D
544,512.54
$
498,199.98
$
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, 2022
D
17,316.18
$
Balance December 31, 2023
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, 2023
Excess
Anticipated
Realized
or Deficit*
Fund Balance Anticipated
250,000.00
$
250,000.00
$
Rents
2,000,000.00
2,248,175.36
248,175.36
$
Miscellaneous Revenue Anticipated
17,500.00
20,266.45
2,766.45
Reserve for Carbon Filter Replacements
60,000.00
60,000.00
2,327,500.00
2,578,441.81
250,941.81
Nonbudget Revenue
13,751.67
13,751.67
2,327,500.00
$
2,592,193.48
$
264,693.48
$
Analysis of Revenue - Rents
Collections
2,247,078.46
$
Overpayments Applied
1,096.90
2,248,175.36
$
Miscellaneous Revenue Anticipated:
Treasurer:
Water Allocation Fees
8,455.00
$
Hydrants
7,755.00
Miscellaneous
4,056.45
20,266.45
$
Nonbudget Revenue:
Collector:
Interest and Penalties
7,731.48
$
Treasurer:
Interest on Investments
2,117.05
Water Utility Capital Fund:
Interest on Investments
3,903.14
13,751.67
$
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, 2023
Appropriation
Expended by
Budget
Unexpended
After
Paid or
Balance
Budget
Modification
Charged
Reserved
Cancelled
Operating:
Salaries and Wages
611,100.00
$
611,100.00
$
593,327.15
$
17,772.85
$
Other Expenses
1,076,911.00
1,076,911.00
930,023.90
146,887.10
Capital Improvements:
Capital Improvement Fund
200,000.00
200,000.00
200,000.00
Capital Outlay
4,000.00
4,000.00
2,400.12
1,599.88
Debt Service:
Payment of Bonds
200,000.00
200,000.00
200,000.00
Payment of Bond Interest
141,709.00
141,709.00
139,499.41
2,209.59
$
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
31,280.00
31,280.00
31,276.34
3.66
Unemployment Insurance
7,500.00
7,500.00
7,500.00
Social Security System (O.A.S.I.)
55,000.00
55,000.00
43,969.90
11,030.10
2,327,500.00
$
2,327,500.00
$
2,147,996.82
$
177,293.59
$
2,209.59
$
Ref.
D
Cash Disbursed
1,938,803.16
$
Accrued Interest on Bonds
139,499.41
Encumbrances Payable
D
81,577.97
2,159,880.54
Less: Appropriation Refunds
11,883.72
2,147,996.82
$
THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
D-3
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
GENERAL FIXED ASSETS ACCOUNT GROUP
E
BOROUGH OF ROCKAWAY
GENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,
2023
2022
ASSETS
Land
9,428,100.00
$
9,428,100.00
$
Buildings
4,580,140.12
4,562,116.37
Equipment and Vehicles
8,909,493.28
8,134,566.54
TOTAL ASSETS
22,917,733.40
$
22,124,782.91
$
RESERVES
Investment in Fixed Assets
22,917,733.40
$
22,124,782.91
$
TOTAL RESERVES
22,917,733.40
$
22,124,782.91
$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
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, 2023
(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, 2023
(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, lease assets and payable as well as the related expense would be recorded for leases for which
the Borough is a lessee, lease receivables and deferred lease resources as well as the related revenue
would be recorded for leases for which the Borough is a lessor, a financed purchases payable would
be recorded for financed purchases agreements under which the Borough acquires and owns a fixed
asset 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 financed purchases
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, 2023
(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, 2023
(Continued)
Note 2:
Long-Term Debt (Cont’d)
Summary of Municipal Debt
2023
2022
2021
Issued
General:
Bonds and Notes
5,433,202.00
$
5,218,227.00
$
5,513,227.00
$
Water Utility:
Bonds and Notes
4,235,000.00
4,435,000.00
4,635,000.00
9,668,202.00
9,653,227.00
10,148,227.00
Less:
General:
Reserve to Pay Debt Service
1,033.63
1,033.63
Net Bonds and Notes Issued and
Authorized but not Issued
9,667,168.37
$
9,653,227.00
$
10,148,227.00
$
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 .591%.
Gross Debt
Deductions
Net Debt
Local School Debt
13,714,175.00
$
13,714,175.00
$
Regional School Debt
1,195,619.55
1,195,619.55
Water Utility Debt
4,235,000.00
4,235,000.00
General Debt
5,433,202.00
1,033.63
5,432,168.37
$
24,577,996.55
$
19,145,828.18
$
5,432,168.37
$
Net Debt: $5,432,168.37 divided by Average Equalized Valuations of $918,761,504 of Real Property =
0.591%.
5
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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
32,156,652.64
$
Net Debt
5,432,168.37
Remaining Borrowing Power
26,724,484.27
$
Calculation of "Self-Liquidating Purpose", Water Utility Per N.J.S.40A:2-45
Cash Receipts from Fees, Rents or Other Charges for Year
2,592,193.48
$
Deductions:
Operating and Maintenance Cost
1,781,791.00
$
Debt Service
339,499.41
2,121,290.41
Excess in Revenue
470,903.07
$
Footnote: If there is an “excess in revenue”, all such utility debt is deductible. If there is a “deficit”, then
utility debt is not deductible to the extent of 20 times such deficit amount. The foregoing debt information
is in agreement with the Annual Debt Statement filed by the Chief Financial Officer.
Summary of Municipal Debt Issued and Outstanding - Current Year
Balance
Balance
Fund
12/31/2022
Additions
Retirements
12/31/2023
Serial Bonds:
General Capital Fund
4,750,000.00
$
310,000.00
$
4,440,000.00
$
Water Utility Capital Fund
4,435,000.00
200,000.00
4,235,000.00
Bond Anticipation Notes:
General Capital Fund
468,227.00
993,202.00
$
468,227.00
993,202.00
9,653,227.00
$
993,202.00
$
978,227.00
$
9,668,202.00
$
Summary of Municipal Debt Issued and Outstanding - Prior Year
Balance
Balance
Fund
12/31/2021
Additions
Retirements
12/31/2022
Serial Bonds:
General Capital Fund
5,045,000.00
$
295,000.00
$
4,750,000.00
$
Water Utility Capital Fund
4,635,000.00
200,000.00
4,435,000.00
Bond Anticipation Notes:
General Capital Fund
468,227.00
468,227.00
$
468,227.00
468,227.00
10,148,227.00
$
468,227.00
$
963,227.00
$
9,653,227.00
$
6
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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%
4,440,000.00
$
General Capital - Bond Anticipation Notes Payable
Purpose
Final Maturity
Rate
Amount
Various Capital Improvements
10/22/2024
5.25%
993,202.00
$
Water Utility Serial Bonds
Purpose
Final Maturity
Rate
Amount
Water Utility Refunding Bonds of 2021
2/1/2036
0.571%-2.444%
1,095,000.00
$
Water Utility Bonds of 2021
8/1/2040
3.00%-5.00%
3,140,000.00
4,235,000.00
$
Total Debt Issued and Outstanding
9,668,202.00
$
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
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
360,000.00
152,600.00
225,000.00
118,065.60
855,665.60
2028
380,000.00
134,600.00
235,000.00
109,733.20
859,333.20
2029-2033
2,200,000.00
372,600.00
1,320,000.00
405,028.40
4,297,628.40
2034-2038
500,000.00
15,000.00
1,340,000.00
178,964.70
2,033,964.70
2039-2040
475,000.00
21,450.00
496,450.00
4,440,000.00
$
1,213,600.00
$
4,235,000.00
$
1,224,694.84
$
11,113,294.84
$
General
Water Utility
7
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 3:
Fund Balances Appropriated
Fund balances at December 31, 2023 which were included in the introduced budget as appropriated and
as anticipated revenue for the year ending December 31, 2024 budget were as follows:
Current Fund
775,000.00
$
Water Utility Operating Fund
226,791.00
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,
2023, the Borough did not have any deferred charges on the various balance sheets that need to be raised
in the succeeding year’s budget.
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.
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
8
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Benefits Provided (Cont’d)
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. State legislation has modified the amount that is contributed by the State. The
State’s pension contribution is based on an actuarially determined amount, which includes the employer
portion of the normal cost and an amortization of the funded accrued liability. Funding for
noncontributory group insurance benefits is based on actual claims paid. 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 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 $199,279.68 for 2023. During the fiscal year ended June 30, 2022, the State of New Jersey contributed
$5,250 to the PERS for normal pension benefits on behalf of the Borough.
The employee contribution rate was 7.50% effective July 1, 2018.
Special Funding Situation
Under N.J.SA. 43:15A-15, local participating employers are responsible for their own contributions based
on actuarially determined amounts, except where legislation was passed that legally obligated the State
if certain circumstances occurred. The legislation, which legally obligates the State, is Chapter 366, P.L.
2001 and Chapter 133, P.L. 2001. The amounts contributed on behalf of the local participating employers
under the legislation is considered to be 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 the legislation directly to the plan (except for employer specific financed amounts),
there is no pension liability or deferred outflows or inflows to report in the financial statement of the local
participating employers related to the legislation. However, the notes to the financial statements of the
local participating employers must disclose the portion of the nonemployer contributing entity’s total
proportionate share of the collective net pension liability that is associated with the local participating
9
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Pension Liabilities and Pension Expense
employer. In addition, each local participating employer must disclose pension expense associated with
the employers in an amount equal to the nonemployer contributing entity’s total proportionate share of
the collective pension expense associated with the local participating employer. At June 30, 2022, the
Borough’s liability was $2,495,296 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of July 1, 2021 which was rolled forward to June 30,
2022. 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, 2022, the Borough's proportion was 0.0165%,
which was an decrease of 0.0027% from its proportion measured as of June 30, 2021. The Borough has
rolled forward the net pension liability as of June 30, 2022 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, 2022 information in the Notes to the Financial
Statements as the June 30, 2023 information has not been released as of the date of this audit.
There was no state proportionate share of the net pension liability attributable to the Borough as of June
30, 2023.
For the year ended December 31, 2023, the Borough recognized actual pension expense in the amount of
$199,279.68.
Actuarial Assumptions
The collective total pension liability for the June 30, 2022 measurement date was determined by an
actuarial valuation as of July 1, 2021 which was rolled forward to June 30, 2022. This actuarial valuation
used the following actuarial assumptions:
Inflation Rate
Price
2.75%
Wage
3.25%
Salary Increases:
2.75 – 6.55% 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
10
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 6:
Pension Plans (Cont’d)
A. Public Employees’ Retirement System (PERS) (Cont’d)
Actuarial Assumptions (Cont’d)
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-2021.
The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an actuarial
experience study for the period July 1, 2018 to June 30, 2021.
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, 2022) 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, 2022 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
8.12%
Non-U.S. Developed Market Equity
13.50%
8.38%
Emerging Markets Equity
5.50%
10.33%
Private Equity
13.00%
11.80%
Real Estate
8.00%
11.19%
Real Assets
3.00%
7.60%
High Yield
4.00%
4.95%
Private Credit
8.00%
8.10%
Investment Grade Credit
7.00%
3.38%
Cash Equivalents
4.00%
1.75%
U.S. Treasuries
4.00%
1.75%
Risk Mitigation Strategies
3.00%
4.91%
11
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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, 2022. 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 100% 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 in determining the total
pension liability.
Sensitivity of the Borough's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the Borough's proportionate share of the collective net pension liability as of June
30, 2022 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, 2022
1%
Current
1%
Decrease
Discount Rate
Increase
(6.00%)
(7.00%)
(8.00%)
Borough's proportionate share
of the Net Pension Liability
3,205,724
$
2,495,296
$
1,890,693
$
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, 2023
(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 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. State legislation has modified the amount that is contributed by the State. The
State’s contribution amount is based on an actuarially determined rate, which includes the normal costs
and unfunded accrued liability. For fiscal year 2022, the State contributed an amount more than the
actuarially determined amount. 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, 2023
(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 $596,624 for the year ended December 31, 2023. During
the fiscal year ended June 30, 2022, the State of New Jersey contributed $116,343 to the PFRS for normal
pension benefits on behalf of the Borough, which is more than the contractually required contribution of
$107,819.
The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Pension Liabilities and Pension Expense
At June 30, 2022, the Borough’s liability for its proportionate share of the net pension liability was
$5,250,973. The net pension liability was measured as of June 30, 2022, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2021
which was rolled forward to June 30, 2022. 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, 2022, the
Borough's proportion was 0.046%, which was an decrease of 0.0014% from its proportion measured as
of June 30, 2021. The Borough has rolled forward the net pension liability as of June 30, 2022 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, 2022 information in the Notes to
the Financial Statements as the June 30, 2023 information has not been released as of the date of this
audit.
14
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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
$934,519 as of June 30, 2022. The net pension liability was measured as of June 30, 2021, and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2021 which was rolled forward to June 30, 2022. 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, 2022, the State's proportion was 0.046%, which was an increase of
0.0014% from its proportion measured as of June 30, 2021 which is the same proportion as the Borough’s.
Borough's Proportionate Share of the Net Pension Liability
5,250,973
$
State's Proportionate Share of the Net Pension Liability Associated
with the Borough
934,519
Total Net Pension Liability
6,185,492
$
For the year ended December 31, 2023, the Borough recognized total pension expense of $596,624.
Actuarial Assumptions
The total pension liability for the June 30, 2022 measurement date was determined by an actuarial
valuation as of July 1, 2021 which was rolled forward to June 30, 2022. This actuarial valuation used the
following actuarial assumptions:
Inflation Rate
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 – 16.25% based on years of service
Thereafter
Not Applicable
Investment Rate of Return
7.00%
15
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 6:
Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Actuarial Assumptions (Cont’d)
Employee mortality rates were based on the PubS-2010 amount-weighted mortality table with a 105.6%
adjustment for males and 102.5% adjustment for females. For healthy annuitants, mortality rates were
based on the PubS-2010 amount-weighted mortality table with a 96.7% adjustment for males and 96.0%
adjustment for females. Disability rates were based on the PubS-2010 amount-weighted mortality table
with a 152.0% adjustment for males and 109.3% adjustment for females. Mortality improvement is based
on Scale MP-2021.
The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an actuarial
experience study for the period July 1, 2018 to June 30, 2021.
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, 2022) 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, 2022 are
summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
8.12%
Non-U.S. Developed Market Equity
13.50%
8.38%
Emerging Markets Equity
5.50%
10.33%
Private Equity
13.00%
11.80%
Real Assets
3.00%
7.60%
Real Estate
8.00%
11.19%
High Yield
4.00%
4.95%
Private Credit
8.00%
8.10%
Investment Grade Credit
7.00%
3.38%
Cash Equivalents
4.00%
1.75%
U.S. Treasuries
4.00%
1.75%
Risk Mitigation Strategies
3.00%
4.91%
16
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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, 2022. 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 100% 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, 2022 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, 2022
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
8,487,164
$
6,185,492
$
4,269,340
$
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, 2023
(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 $8,067.90 for the year ended December 31, 2023.
Employee contributions to DCRP amounted to $10,956.58 for the year ended December 31, 2023.
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 $253,899.95 at December 31, 2023. 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 $242,673.40 for Accumulated Absences on the Trust Fund balance sheet at
December 31, 2023.
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, 2023
(Continued)
Note 8:
Selected Tax Information (Cont’d)
2023
2022
2021
Tax Rate
3.25
$
3.23
$
3.20
$
Apportionment of Tax Rate
Municipal
0.93
0.91
0.90
County
0.29
0.28
0.28
Local School
1.17
1.19
1.17
Regional School
0.86
0.85
0.85
Assessed Valuations
2023
792,615,487.00
$
2022
791,462,992.00
$
2021
789,747,592.00
$
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
2022
25,768,983.57
$
25,435,151.30
$
98.70%
2021
25,611,852.30
25,223,881.99
98.48%
2020
25,331,781.37
24,972,995.34
98.58%
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, 2023
(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 in the Investments section of this note.
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, 2023
(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, 2023
(Continued)
Note 9:
Cash and Cash Equivalents (Cont’d)
Investments (Cont'd)
As of December 31, 2023, 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
$
7,628,858.21
$
3,082.46
$
7,632,040.67
$
Animal Control Trust Fund
15,494.05
15,494.05
Other Trust Funds
1,535,292.69
1,535,292.69
General Capital Fund
2,223,951.98
2,223,951.98
Water Utility Operating Fund
100.00
941,876.78
4,644.75
946,621.53
Water Utility Capital Fund
1,902,833.41
1,902,833.41
200.00
$
14,248,307.12
$
7,727.21
$
14,256,234.33
$
During the period ended December 31, 2023, the Borough did not hold any investments. The carrying
amount of the Borough's cash and cash equivalents at December 31, 2023, was $14,256,234.33 and the
bank balance was $14,458,546.67. The $7,727.21 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, 2023
(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, 2023 financial statements were not available as of the date of this report. Selected
financial information for the Fund as of December 31, 2022 is as follows:
Morris County
Municipal Joint
Insurance Fund
Total Assets
35,928,978.00
$
Net Position
10,500,044.00
$
Total Revenue
21,851,847.00
$
Total Expenditures
27,577,728.00
$
Change in Net Position
(5,725,881.00)
$
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, 2023
(Continued)
Note 10: Risk Management (Cont’d)
New Jersey Unemployment Compensation Insurance (Cont’d)
Borough
Interest
Employees
Amount
Ending
Year
Contributions
Earned
Contributions
Reimbursed
Balance
2023
15,000.00
$
375.95
$
6,850.19
$
13,050.09
$
154,069.19
$
2022
15,000.00
338.57
5,883.61
2,946.71
144,893.14
2021
15,000.00
433.46
5,269.20
3,541.89
126,617.67
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 $750,000.00 which it feels should be sufficient to cover these tax appeals.
24
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(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, 2023
(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, 2021
through June 30, 2022. 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, 2023
(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, 2022 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, 2022 OPEB information in the Notes to the
Financial Statements as the June 30, 2023 information has not been released as of the date of this report.
The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021,
which was rolled forward to June 30, 2022.
The State’s proportionate share of the net OPEB liability attributable to the Borough at June 30, 2022 was
$4,925,256. At June 30, 2022, the State’s proportion related to the Borough was .1459% which was an
increase of .0044% from its proportion measured as of June 30, 2021. This is the percentage of the total
State Share of the net OPEB liability of the Plan. During the year ended June 30, 2022, the State of New
Jersey’s OPEB benefit related to the Borough was $807,845.
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.
Salary Increases*:
Public Employees’ Retirement System (PERS)
Rate for all future years
2.75% - 6.55% based on years of service
Police and Firemen’s Retirement System (PFRS)
Rate for all future years
3.25% to 16.25% based on years of service
* - 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-2021
PFRS
Pub-2010 Safety classification headcount weighted mortality with fully generational
mortality improvement projections from the central year using Scale MP-2021
Actuarial assumptions used in the July 1, 2021 valuation were based on the results of the PFRS and PERS
experience studies prepared for July 1, 2018 to June 30, 2021. 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, 2023
(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 6.25% for fiscal year 2023 and decreases to a 4.50%
long term trend rate in 2030. For PPO post 65 medical benefits, the trend rate is -1.89% in fiscal year
2023 and increases to a 4.50% trend rate starting with fiscal year 2033 and later. For HMO Post 65 medical
benefits, the trend rate is -1.99% in fiscal year 2023 and increases to a 4.50% trend rate starting with fiscal
year 2033 and later. For prescription drug benefits, the trend rate is 8.00% for fiscal year 2023 and
decreases to a 4.50% trend rate in 2030 and later.
Discount Rate
The discount rate for June 30, 2022 was 3.54%. 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, 2022 and
2023.
Balance
Balance
12/31/21
Additions
Deletions
12/31/22
Land
9,407,660.00
$
20,440.00
$
9,428,100.00
$
Buildings
4,269,606.00
292,510.37
4,562,116.37
Equipment and Vehicles
7,891,047.27
243,519.27
8,134,566.54
21,568,313.27
$
556,469.64
$
-0-
$
22,124,782.91
$
Balance
Balance
12/31/22
Additions
Deletions
12/31/23
Land
9,428,100.00
$
9,428,100.00
$
Buildings
4,562,116.37
18,023.75
$
4,580,140.12
Equipment and Vehicles
8,134,566.54
774,926.74
8,909,493.28
22,124,782.91
$
792,950.49
$
-0-
$
22,917,733.40
$
28
BOROUGH OF ROCKAWAY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
(Continued)
Note 16: Interfund Receivables and Payables
The following interfund balances remain on the balance sheet at December 31, 2023:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
77,541.18
$
Other Trust Funds
77,541.18
$
77,541.18
$
77,541.18
$
The interfund payable in the Current Fund is the amount payable to Other Trust Funds for a Current Fund
expenditure paid by Other Trust Funds and receipts for Other Trust Funds held received in Current Fund.
29
BOROUGH OF ROCKAWAY
SUPPLEMENTARY DATA
Schedule 1
BOROUGH OF ROCKAWAY
OFFICIALS IN OFFICE AND SURETY BONDS
YEAR ENDED DECEMBER 31, 2023
Amount of
Name
Title
Bond
Thomas Mulligan
Mayor
Melissa Burnside
Council President
Robert Smith
Councilman
Patrick McDonald
Councilman
Thomas Haynes
Councilman
James Hurley
Councilman
Thomas Slockbower
Councilman
Kimberly Cuspilich
Borough Clerk
(A)
Patricia Reiche
Chief Financial Officer/Treasurer/Administrator
(A)
Susan Pfeil
Tax Collector
(A)
Robyn Lance
Water Clerk
(A)
All bonds were examined and were properly executed.
(A) All employees are covered under $50,000 and $950,000 Faithful Performance Bonds provided by the Morris County Municipal Joint Insurance Fund
and the Municipal Excess Liability Joint Insurance Fund, respectively.
1
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
CURRENT FUND
A-4
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2022
A
7,221,304.08
$
Increased by Receipts:
Tax Collector
25,790,145.35
$
Revenue Accounts Receivable
995,619.87
Miscellaneous Revenue Not Anticipated
351,712.62
Due Animal Control Trust Fund:
Interest Due Current Fund
54.71
Due Other Trust Funds:
Interest Due Current Fund
2,962.88
Due General Capital Fund
Anticipated Revenue - Capital Fund Balance
80,314.10
Interest Due Current Fund
5,297.55
Due Water Utility Operating Fund:
Sewer User Fees
763,249.98
Sewer Overpayments
6,542.20
Interest on Delinquent Sewer User Fees
4,987.67
Due State of New Jersey:
Marriage License Fees
125.00
Lead Fees
120.00
DCA Training Fees
675.00
Veterans and Senior Citizens' Deductions
33,250.00
Appropriation Refunds
248,156.73
Grants Receivable
197,160.53
Reserve for Municipal Relief Fund Aid
57,054.90
Unappropriated Grant Reserves
7,356.22
28,544,785.31
35,766,089.39
Decreased by Disbursements:
2023 Appropriation Expenditures
8,523,588.64
$
2022 Appropriation Reserves
548,898.28
Local School Taxes
9,255,675.00
Regional High School Taxes
6,790,887.00
County Taxes
2,342,196.80
Due General Capital Fund:
Prior Year Interfund Returned
34,646.00
Due Water Utility Capital Fund
400,750.00
Reserve for Pending Tax Appeals
72,428.26
Reserve for Master Plan
3,965.00
Appropriated Grant Reserves
144,206.23
Accounts Payable
16,907.51
28,134,148.72
Balance December 31, 2023
A
7,631,940.67
$
A-5
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2023
Increased by Receipts:
Taxes Receivable
25,522,421.95
$
Interest and Costs on Taxes
77,349.56
2023 Prepaid Taxes
161,348.84
Tax Sale Premiums - Due Other Trust Funds
28,900.00
Other Miscellaneous Revenue
125.00
25,790,145.35
$
Decreased by Disbursements:
Paid to Treasurer
25,790,145.35
$
A-6
BOROUGH OF ROCKAWAY
SCHEDULE OF CASH - GRANT FUNDS
YEAR ENDED DECEMBER 31, 2023
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, 2022
2023 Levy
2022
2023
Deductions
Cancelled
Title Liens
Dec. 31, 2023
2022
239,860.23
$
240,581.14
$
(750.00)
$
29.09
$
2023
25,768,983.57
$
119,310.49
$
25,281,840.81
34,000.00
14,095.77
69,845.75
$
249,890.75
$
239,860.23
$
25,768,983.57
$
119,310.49
$
25,522,421.95
$
33,250.00
$
14,124.86
$
69,845.75
$
249,890.75
$
Ref.
A
A
Analysis of 2023 Property Tax Levy:
Tax Yield:
General Purpose Tax
25,760,000.50
$
Added and Omitted Taxes
8,983.07
25,768,983.57
$
Tax Levy:
Local School District Taxes
9,255,675.00
$
Regional High School District Taxes
6,790,887.00
County Taxes
2,337,348.54
$
County Added and Omitted Taxes
817.96
2,338,166.50
18,384,728.50
Local Tax for Municipal Purposes Levied
7,070,647.04
Minimum Library Tax
303,277.00
Add: Additional Tax Levied
10,331.03
7,384,255.07
25,768,983.57
$
A-7
A-8
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
Ref.
Balance December 31, 2022
A
1,285,098.06
$
Increased by:
Transfer from Taxes Receivable
69,845.75
$
Interest and Costs - Tax Sale
2,813.13
72,658.88
Balance December 31, 2023
A
1,357,756.94
$
A-9
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Accrued In
Collected by
Balance
Dec. 31, 2022
2023
Treasurer
Dec. 31, 2023
Municipal Clerk:
Alcoholic Beverage Licenses
20,460.00
$
20,460.00
$
Fees and Permits
73,092.49
73,092.49
Other Licenses
61,527.21
61,527.21
Construction Code Official:
Fees and Permits
159,169.00
159,169.00
Municipal Court:
Fines and Costs
1,016.74
$
22,433.98
22,201.90
1,248.82
$
Energy Receipts Taxes
550,776.02
550,776.02
Uniform Fire Safety Fees
30,893.25
30,893.25
Morris Hills Regional -
School Resource Officer
77,500.00
77,500.00
1,016.74
$
995,851.95
$
995,619.87
$
1,248.82
$
Ref.
A
A
A-9
A-10
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF SEWER USER FEES RECEIVABLE
Ref.
Balance December 31, 2022
A
63,414.34
$
Increased by:
Sewer User Fees Levied
752,386.55
$
Interest on Delinquent Sewer User Fees
4,987.67
757,374.22
820,788.56
Decreased by:
Collections in Current Fund:
Sewer User Fees
741,158.85
$
American Rescue Plan Act - Low Income Household
Water Assistance Program
22,091.13
763,249.98
Interest on Delinquent Sewer User Fees
4,987.67
768,237.65
Balance December 31, 2023
A
52,550.91
$
A-11
1 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2023
Balance
Balance After
Paid or
Balance
Dec. 31, 2022
Modification
Charged
Lapsed
GENERAL GOVERNMENT:
General Administration:
Salaries & Wages
49.60
$
49.60
$
49.60
$
Other Expenses
2,319.93
2,319.93
2,212.83
$
107.10
Mayor & Council:
Salaries & Wages
21.20
21.20
21.20
Other Expenses
225.00
225.00
20.00
205.00
Clerk:
Salaries & Wages
29,524.96
29,524.96
29,524.96
Other Expenses
930.30
930.30
279.94
650.36
Financial Administration:
Salaries & Wages
1,153.04
1,153.04
273.20
879.84
Other Expenses
8,898.42
8,898.42
7,714.38
1,184.04
Audit Fees
20,350.00
20,350.00
20,350.00
Assessment of Taxes:
Salaries & Wages
224.00
224.00
224.00
Other Expenses
1,143.13
1,143.13
1,143.13
Revenue Administration (Tax Collection):
Salaries & Wages
100.08
100.08
100.08
Other Expenses
2,800.69
2,800.69
2,800.69
Legal Services and Costs:
Other Expenses - Fees
48,778.67
48,778.67
26,375.47
22,403.20
Engineering Services:
Other Expenses
27,577.16
27,577.16
1,282.50
26,294.66
LAND USE ADMINISTRATION:
Land Use Board:
Salaries & Wages
30.96
30.96
30.96
Other Expenses
5,503.94
5,503.94
4,915.00
588.94
Zoning Enforcement:
Salaries & Wages
2,001.03
2,001.03
2,001.03
Other Expenses
579.51
579.51
579.51
Insurance:
Employee Group Insurance
185,989.45
185,989.45
28.00
185,961.45
Workers' Compensation
1,114.36
1,114.36
1,114.36
General Liability Insurance
29,331.44
29,331.44
29,331.44
Health Benefit Waiver
583.33
583.33
583.33
PUBLIC SAFETY:
Office of Emergency Management:
Salaries & Wages
0.08
0.08
0.08
Other Expenses
2,800.00
2,800.00
2,330.95
469.05
Volunteer Fire/Ambulance Department:
Other Expenses
35,490.39
35,490.39
21,186.14
14,304.25
A-11
2 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2023
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2022
Modification
Charged
Lapsed
PUBLIC SAFETY:
Fire Prevention/Uniform Fire Code:
Salaries & Wages
26.99
$
26.99
$
26.99
$
Other Expenses
1,136.03
1,136.03
1,135.21
$
0.82
Police:
Salaries & Wages
13,812.82
13,812.82
13,812.82
Other Expenses
37,609.39
37,609.39
20,724.38
16,885.01
Alarm System - Police and Fire:
Other Expenses
134,800.00
134,800.00
134,793.61
6.39
PUBLIC WORKS:
Road Repairs and Maintenance:
Other Expenses
35,844.20
35,844.20
35,844.20
Other Public Works Functions:
Salaries & Wages
2,107.00
2,107.00
2,107.00
Shade Tree Commission:
Other Expenses
1,518.52
1,518.52
1,518.52
Sewer:
Other Expenses
5,000.00
5,000.00
5,000.00
Public Building and Grounds:
Other Expenses
11,945.09
11,945.09
11,945.09
Vehicle Maintenance:
Other Expenses
15,769.31
15,769.31
15,769.31
HEALTH AND WELFARE:
Board of Health:
Salaries & Wages
6.48
6.48
6.48
Other Expenses
4,593.03
4,593.03
448.00
4,145.03
Senior Citizens' Programs:
Salaries & Wages
20.00
20.00
20.00
RECREATION AND EDUCATION:
Recreation Commission:
Other Expenses
16,880.29
16,880.29
7,579.29
9,301.00
Maintenance of Parks:
Other Expenses
12,605.55
12,605.55
8,385.00
4,220.55
UNIFORM CONSTRUCTION CODE:
Construction Code Official:
Other Expenses
351.50
351.50
173.00
178.50
Uniform Construction Code Enforcement:
Other Expenses
1,107.00
1,107.00
1,107.00
UNCLASSIFIED:
Utilities:
Gas (Natural or Propane)
4,500.17
4,500.17
4,500.17
Street Lighting
15,071.36
15,071.36
9,983.18
5,088.18
Electricity
1,155.32
1,155.32
1,155.32
Gasoline and Diesel
11,785.39
11,785.39
10,120.11
1,665.28
Telephone
2,194.12
2,194.12
1,414.02
780.10
A-11
3 of 3
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2023
(Continued)
Balance
Balance After
Paid or
Balance
Dec. 31, 2022
Modification
Charged
Lapsed
UNCLASSIFIED:
Celebration of Public Events:
Other Expenses
2,000.00
$
2,000.00
$
2,000.00
$
Solid Waste Disposal:
Salaries & Wages
1,455.02
1,455.02
1,455.02
$
Other Expenses
71,197.00
71,197.00
68,767.82
2,429.18
Contingent
500.00
500.00
500.00
STATUTORY EXPENDITURES:
Public Employees Retirement System
13,587.52
13,587.52
3,739.72
9,847.80
Contribution to Social Security System (OASI)
8,218.30
8,218.30
8,218.30
Defined Contribution Retirement Plan
2,740.76
2,740.76
2,740.76
Aid to Municipal Library
2,442.31
2,442.31
2,442.31
Length of Service Awards Program
20,000.00
20,000.00
13,600.00
6,400.00
SHARED SERVICE AGREEMENTS:
Parsippany-Troy Hills - Municipal Court
3,818.00
3,818.00
3,818.00
CAPITAL IMPROVEMENTS:
Fire Department Equipment
15,424.60
15,424.60
15,424.60
Police Department Equipment
80,000.00
80,000.00
80,000.00
Park Maintenance Capital Improvements
6,045.20
6,045.20
852.17
5,193.03
Sewer Capital Improvements
125,000.00
125,000.00
125,000.00
John Street Improvement
17,279.00
17,279.00
17,279.00
1,107,067.94
$
1,107,067.94
$
732,007.22
$
375,060.72
$
Balance December 31, 2022
Unencumbered
A
814,083.47
$
Encumbered
A
292,984.47
1,107,067.94
$
Analysis of Paid or Charged
Cash Disbursed
548,898.28
$
Reserve for Sewer Maintenance
125,000.00
Accounts Payable
9,467.76
Due Other Trust Funds:
Accumulated Absences
29,524.96
Storm Recovery
19,116.22
732,007.22
$
A-12
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance December 31, 2022
A
- 0 -
$
Increased by:
Levy - Calendar Year 2023
9,255,675.00
9,255,675.00
Decreased by:
Payments to Local School District
9,255,675.00
Balance December 31, 2023
A
- 0 -
$
A-13
CURRENT FUND
SCHEDULE OF REGIONAL HIGH SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance December 31, 2022
A
- 0 -
$
Increased by:
Levy - Calendar Year 2023
6,790,887.00
6,790,887.00
Decreased by:
Payments to Regional High School District
6,790,887.00
Balance December 31, 2023
A
- 0 -
$
A-14
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
Transfer from
Balance
Revenue
Cash
Unappropriated
Balance
Dec. 31, 2022
Realized
Received
Reserves
Dec. 31, 2023
Recycling Tonnage Grant
5,825.52
$
9,909.66
$
9,909.66
$
5,825.52
$
Clean Communities
11,500.00
11,500.00
Bulletproof Vest Partnership Grant
1,735.98
1,735.98
Body Armor Replacement
1,359.48
1,359.48
$
Body-Worn Cameras Grant
27,716.80
27,716.80
Safe and Secure Communities Grant:
2022
5,413.60
5,413.60
2023
15,228.00
4,560.00
10,668.00
Drunk Driving Enforcement Fund
1,479.03
1,479.03
Municipal Alliance Grant
6,221.00
6,221.00
Morris County Historic Preservation Trust Fund Grant:
Fox's Brook Culvert Project
22,400.00
22,400.00
NJDEP/NJEDA Hazardous Discharge Site Remediation
123,060.47
123,060.47
NJ Stormwater Management Planning Assistant Grant
15,000.00
15,000.00
64,570.93
$
182,278.61
$
197,160.53
$
1,359.48
$
48,329.53
$
Ref.
A
A
Adopted Budget
38,133.48
$
Added by N.J.S.A. 40A:4-87
144,145.13
182,278.61
$
State Awards
197,160.53
$
197,160.53
$
A-14
A-15
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF UNAPPROPRIATED GRANT RESERVES
YEAR ENDED DECEMBER 31, 2023
Budget
Balance
Cash
Revenue
Balance
Dec. 31, 2022
Received
Realized
Dec. 31, 2023
Body Armor Grant
1,359.48
$
1,651.79
$
1,359.48
$
1,651.79
$
Lead Assistance Grant
2,200.00
2,200.00
Clean Communities
3,504.43
3,504.43
1,359.48
$
7,356.22
$
1,359.48
$
7,356.22
$
Ref.
A
A
A-16
BOROUGH OF ROCKAWAY
CURRENT FUND
SCHEDULE OF APPROPRIATED GRANT RESERVES
Transferred
Prior Year
from
Balance
Encumbrances
2023 Budget
Paid or
Balance
Dec. 31, 2022
Returned
Appropriations
Charged
Dec. 31, 2023
Body Armor Grant
2,563.13
$
1,359.48
$
3,922.61
$
Clean Communities:
2022
12,767.34
12,767.34
2023
11,500.00
645.31
10,854.69
$
Distracted Driving
55.00
55.00
Drunk Driving Enforcement Fund
18,190.46
18,190.46
Trolley 2018 - Local Match
8,065.50
8,065.50
Municipal Alliance:
2023
6,221.00
5,103.80
1,117.20
Municipal Alliance 2023 - Local Match
1,055.25
1,053.75
1.50
Recycling Tonnage:
2020
1,277.30
1,277.30
2021
5,700.06
5,700.06
2022
14,067.73
4,371.59
9,696.14
2023
9,909.66
9,909.66
Safe and Secure Communities:
2023
15,228.00
15,228.00
Local Safety Improvement
3,224.08
3,224.08
NJDEP/NJEDA Hazardous Discharge Site Remediation
123,060.47
123,060.47
NJ Stormwater Management Planning Assistant Grant
15,000.00
15,000.00
American Rescue Plan Act Grant
432,473.34
38,430.80
$
460,380.80
10,523.34
498,383.94
$
38,430.80
$
183,333.86
$
633,511.03
$
86,637.57
$
Ref.
A
A
A
Adopted Budget
38,133.48
$
Local Match
1,055.25
Added by N.J.S.A. 40A:4-87
144,145.13
183,333.86
$
Cash Disbursements
144,206.23
$
Due to Water Capital Fund
400,750.00
Encumbrances Payable
88,554.80
633,511.03
$
Federal
460,380.80
$
State
172,076.48
Local
1,053.75
633,511.03
$
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
TRUST FUNDS
B-4
1 of 2
Ref.
Animal Control Fund
Other Trust Funds
Balance December 31, 2022
B
20,145.87
$
1,592,045.44
$
Increased by Receipts:
Due Current Fund:
Interfund
70.00
$
License Fees
9,050.60
Interest on Investments
54.71
State Registration Fees
653.40
Miscellaneous Fees
1,483.00
Trust Escrow
166,200.57
$
Addison Hills Escrow
13.63
Parking Offense Adjudication Act
38.00
Unemployment Insurance Deposits
22,226.14
Forfeited Assets
77.66
Recycling
13,277.24
Public Defender
632.00
National Night Out
3,300.00
Fire Prevention
6,150.00
Outside Police Services
481,010.74
Recreation Deposits
8,969.86
11,311.71
701,895.84
2,293,941.28
BOROUGH OF ROCKAWAY
TRUST FUNDS
SCHEDULE OF CASH AND INVESTMENTS - TREASURER
B-4
1 of 2
B-4
2 of 2
BOROUGH OF ROCKAWAY
TRUST FUNDS
SCHEDULE OF CASH AND INVESTMENTS - TREASURER
Ref.
Animal Control Fund
Other Trust Funds
Decreased by Disbursements:
Due Current Fund:
Interfund - Current
70.00
$
Interest on Investments
54.71
State of New Jersey Board of Health
718.20
Expenditures Under R.S. 4:19-15.11
15,120.62
Unemployment Insurance Expenditures
13,050.09
$
D.A.R.E
168.00
National Night Out
4,825.96
Fire Prevention
3,856.41
Outside Police Services
578,430.27
Recycling
9,565.89
Trust Escrow
103,561.10
Accumulated Absences
12,645.22
Storm Recovery
27,014.93
Recreation Expenditures
5,530.72
15,963.53
$
758,648.59
$
Balance December 31, 2023
B
15,494.05
$
1,535,292.69
$
B-4
2 of 2
B-5
BOROUGH OF ROCKAWAY
ASSESSMENT TRUST FUND
ANALYSIS OF CASH
YEAR ENDED DECEMBER 31, 2023
NOT APPLICABLE
B-6
BOROUGH OF ROCKAWAY
ANIMAL CONTROL FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
Ref.
Balance December 31, 2022
B
19,277.67
$
Dog and Cat License Fees
9,050.60
$
Prior Year Prepaid Licenses Applied
810.60
Miscellaneous Fees
1,483.00
11,344.20
30,621.87
Decreased by:
Expenditures Under R.S. 4:19-15.11
15,120.62
15,120.62
Balance December 31, 2023
B
15,501.25
$
License Fees Collected
Amount
Year
2021
11,465.20
$
2022
10,658.80
Maximum Allowable Reserve
22,124.00
$
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
GENERAL CAPITAL FUND
C-2
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2022
C
2,535,213.78
$
Increased by:
Budget Appropriation:
Capital Improvement Fund
32,000.00
$
Payment of Bond Anticipation Notes
80,314.10
Grants Receivable:
NJ Department of Transportation
418,740.82
Local Recreation Improvement Grant
75,000.00
Serial Bonds Proceeds
Premium on Serial Bonds
Community Development Block Grant
Bond Anticipation Note Proceeds
993,202.00
Due Current Fund:
Prior Year Expenditure Due to Fund
34,646.00
Interest Earned
5,297.55
Reserve to Pay Debt Service:
Premium on Bond Anticipation Notes
1,033.63
1,640,234.10
4,175,447.88
Decreased by:
Improvement Authorizations
1,397,657.25
Bond Anticipation Notes
468,227.00
Due to Current Fund:
Budget Anticipated Revenue - Capital Fund Balance
80,314.10
Interest Earned
5,297.55
1,951,495.90
Balance December 31, 2023
C
2,223,951.98
$
C-3
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
ANALYSIS OF CASH
Receipts
Disbursements
Balance/
Bond
Bond
Balance/
(Deficit)
Budget
Anticipation
Improvement
Anticipation
Transfers
(Deficit)
Dec. 31, 2022
Miscellaneous
Appropriation
Notes
Authorizations
Notes
Miscellaneous
From
To
Dec. 31, 2023
Capital Fund Balance
265,338.76
$
80,314.10
$
71,355.90
$
113,668.76
$
Capital Improvement Fund
628,262.14
32,000.00
$
465,340.00
82,806.25
$
277,728.39
Due from Current Fund
(34,646.00)
39,943.55
$
80,314.10
5,297.55
80,314.10
Grants Receivable:
NJ Department of Transportation
(457,961.31)
418,740.82
199,815.00
115,631.74
(123,403.75)
Local Recreation Improvement Grant
(75,000.00)
75,000.00
Reserve to Pay Debt Service
1,033.63
71,355.90
71,355.90
1,033.63
Ord. No.
Improvement Description
12-13
Road Improvements
9,050.29
9,050.29
$
08-14
Maple Avenue Improvements
2,689.48
2,689.48
12-15
Various Capital Improvements
4,210.49
1,457.08
2,753.41
14-16
Various Capital Improvements
34,646.00
34,646.00
12-19
Various Capital Improvements
252,301.54
179,462.86
72,838.68
05-20
Sanitary Sewer Rehabilitation
40,486.31
40,486.31
06-20
Various Capital Improvements
662,391.27
149,796.32
198,437.99
314,156.96
14-21
Various Capital Improvements
320,991.75
316,557.00
$
219,752.80
468,227.00
$
151,670.00
101,238.95
10-22
Various Capital Improvements
882,453.06
664,873.54
217,579.52
23-13
Various Capital Improvements
676,645.00
173,264.36
665,155.00
1,168,535.64
2,535,213.78
$
534,718.00
$
112,314.10
$
993,202.00
$
1,397,657.25
$
468,227.00
$
85,611.65
$
1,086,618.89
$
1,086,618.89
$
2,223,951.98
$
Ref.
C
C
C-3
C-4
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Paid by
Bond
Ord.
Balance
2023
Budget
Reserve to
Balance
Anticipation
No.
Dec. 31, 2022
Authorizations
Appropriation
Pay Debt Service
Dec. 31, 2023
Notes
14-21
Various Capital Improvements
468,227.00
$
80,314.10
$
71,355.90
$
316,557.00
$
316,557.00
$
23-13
Various Capital Improvements
676,645.00
$
676,645.00
676,645.00
468,227.00
$
676,645.00
$
80,314.10
$
71,355.90
$
993,202.00
$
993,202.00
$
Ref.
C
C
Improvement Authorizations - Unfunded
777,883.95
$
Less: Unexpended Proceeds of Bond Anticipation Notes Issued:
Ordinance 14-21 (Various Capital Improvements)
(101,238.95)
Ordinance 23-13 (Various Capital Improvements)
(676,645.00)
- 0 -
$
Improvement Description
Analysis of Balance
December 31, 2023
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, 2022
Improvement
Transportation
Future Taxation
Paid or
Authorizations
December 31, 2023
No.
Improvement Description
Date
Amount
Funded
Unfunded
Fund
Grant
Unfunded
Charged
Cancelled
Funded
Unfunded
12-13
Road Improvements
07/25/13
400,000.00
$
9,050.29
$
9,050.29
$
08-14
Maple Avenue Improvements
07/10/14
129,000.00
2,689.48
2,689.48
$
12-15
Various Capital Improvements
08/19/15
1,543,200.00
4,210.49
1,457.08
2,753.41
14-16
Various Capital Improvements
09/08/16
2,361,600.00
34,646.00
34,646.00
12-19
Various Capital Improvements
07/11/19
789,790.00
252,301.54
179,462.86
72,838.68
05-20
Sanitary Sewer Rehabilitation
05/14/20
123,600.00
40,486.31
40,486.31
06-20
Various Capital Improvements
06/11/20
1,025,000.00
662,391.27
149,796.32
198,437.99
$
314,156.96
14-21
Various Capital Improvements
06/10/21
754,871.00
320,991.75
$
219,752.80
101,238.95
$
10-22
Various Capital Improvements
05/12/22
899,600.00
882,453.06
664,873.54
217,579.52
23-13
Various Capital Improvements
06/08/23
1,341,800.00
465,340.00
$
199,815.00
$
676,645.00
$
173,264.36
491,890.64
676,645.00
1,888,228.44
$
320,991.75
$
465,340.00
$
199,815.00
$
676,645.00
$
1,397,657.25
$
198,437.99
$
1,177,041.00
$
777,883.95
$
Ref.
C
C
C
C
Capital Improvement Fund
82,806.25
$
New Jersey Department of Transportation Grant
115,631.74
198,437.99
$
2023 Authorizations
C-5
C-6
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2022
C
628,262.14
$
Increased by:
Improvement Authorization Cancelled
82,806.25
$
Current Fund Budget Appropriation
32,000.00
114,806.25
743,068.39
Decreased by:
Appropriated to Finance Improvement Authorizations
465,340.00
Balance December 31, 2023
C
277,728.39
$
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, 2022
Issued
Matured
Dec. 31, 2023
14-21
Various Capital Improvements
10/26/21
10/25/22
10/24/23
4.25%
468,227.00
$
468,227.00
$
10/23/23
10/22/24
5.25%
316,557.00
$
316,557.00
$
23-13
Various Capital Improvements
10/26/21
10/23/23
10/22/24
5.25%
676,645.00
676,645.00
468,227.00
$
993,202.00
$
468,227.00
$
993,202.00
$
Ref.
C
C
Renewed
316,557.00
$
316,557.00
$
Issued for Cash
676,645.00
Paid by Budget Appropriation
80,314.10
Redeemed for Cash
71,355.90
993,202.00
$
468,227.00
$
C-7
C-8
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF SERIAL BONDS PAYABLE
Maturities of Bonds
Outstanding
Date of
Original
December 31, 2023
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2022
Matured
Dec. 31, 2023
General Improvement Bonds 01/19/21
5,390,000.00
$
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%
4,750,000.00
$
310,000.00
$
4,440,000.00
$
4,750,000.00
$
310,000.00
$
4,440,000.00
$
Ref.
C
C
C-8
C-9
Bond
Bond
Anticipation
Anticipation
Ord.
Ord.
Balance
2023
Notes
Notes
Reserve to
Balance
Number
Date
Improvement Description
Dec. 31, 2022
Authorizations
Redeemed
Issued
Pay Debt Service
Dec. 31, 2023
14-21
06/10/21
Various Capital Improvements
71,355.90
$
71,355.90
$
23-13
06/08/23
Various Capital Improvements
676,645.00
$
676,645.00
$
- 0 -
$
676,645.00
$
71,355.90
$
676,645.00
$
71,355.90
$
- 0 -
$
BOROUGH OF ROCKAWAY
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
C-9
BOROUGH OF ROCKAWAY
COUNTY OF MORRIS
2023
WATER UTILITY FUND
D-4
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUNDS
SCHEDULE OF CASH - TREASURER
Ref.
Operating
Capital
Balance December 31, 2022
D
859,454.74
$
1,870,763.68
$
Increased by Receipts:
Water Utility Collector
3,041,825.11
$
Interest on Investments
2,117.05
Water Allocation Fees
8,455.00
Other Miscellaneous Revenue
4,056.45
Private Hydrants
7,755.00
Appropriation Refunds
11,883.72
Budget Appropriation:
Capital Improvement Fund
200,000.00
$
American Rescue Plan Act Grant
400,750.00
Due Water Utility Capital Fund:
Interest Earned
3,903.14
Due Water Utility Operating Fund:
Interest Earned
3,903.14
3,079,995.47
604,653.14
3,939,450.21
2,475,416.82
Decreased by Disbursements:
2023 Budget Appropriations
1,938,803.16
2022 Appropriation Reserves
137,636.99
Accrued Interest on Bonds
141,708.68
D-4
1 of 2
D-4
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY FUNDS
SCHEDULE OF CASH - TREASURER
Ref.
Operating
Capital
Decreased by Disbursements:
Improvement Authorizations Expenditures
568,680.27
$
Due Current Fund:
Sewer Collector
774,779.85
$
Due Water Utility Operating Fund
Interest Earned
3,903.14
2,992,928.68
$
572,583.41
$
Balance December 31, 2023
D
946,521.53
$
1,902,833.41
$
D-4
2 of 2
D-4A
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2023
Increased by Receipts:
Water Rents
2,247,078.46
$
Water Overpayments
12,235.32
Interest on Delinquent Accounts
7,731.48
Total Consumer Accounts Receivable
2,267,045.26
$
Due Current Fund:
Sewer User Fees
741,158.85
American Rescue Plan Act - Low Income Household
Water Assistance Program
22,091.13
Sewer Overpayments
6,542.20
Interest on Delinquent Sewer User Fees
4,987.67
774,779.85
Decreased by Disbursements:
Paid to Treasurer
3,041,825.11
$
D-5
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
ANALYSIS OF WATER CAPITAL CASH
Balance/
Balance
Budget
Improvement
Transfers
(Deficit)
Dec. 31, 2022
Appropriation
Miscellaneous
Authorizations
Miscellaneous
From
To
Dec. 31, 2023
Capital Fund Balance
17,316.18
$
17,316.18
$
Capital Improvement Fund
135,112.04
200,000.00
$
214,000.00
$
121,112.04
Due Water Utility Operating Fund
3,903.14
$
3,903.14
$
Due Current Fund
400,750.00
413,400.00
12,650.00
$
Reserve for Capital Improvements
150,063.08
40,000.00
110,063.08
Community Development Block Grant Receivable
125,000.00
(125,000.00)
Ord.
No.
Improvement Description
15-16
Various Water Utility Improvements
137,129.52
81,706.72
$
55,422.80
09-17
Various Water Utility Improvements
52,920.00
25,476.50
27,443.50
07-18
Various Water Utility Improvements
271,279.68
49,731.96
221,547.72
10-19
Acquisition and Installation of Generator
36,754.19
10,791
25,963.09
11-19
Various Water Utility Improvements
42,051.91
24,899.91
17,152.00
07-20
Various Water Utility Improvements
21,327.50
13,402.00
7,925.50
14-20
Water Main Improvements
39,270.85
39,270.85
12-21
Various Water Utility Improvements
171,694.93
1,694.93
170,000.00
20-21
Installation of Water Meters & Equipment
435,843.80
435,843.80
09-22
Installation of Water Main
360,000.00
85,905.89
274,094.11
12-23
Various Water Utility Improvements
275,071.26
12,650.00
792,400.00
504,678.74
1,870,763.68
$
200,000.00
$
404,653.14
$
568,680.27
$
3,903.14
$
805,050.00
$
805,050.00
$
1,902,833.41
$
Disbursements
Receipts
D-5
D-6
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Ref.
Balance December 31, 2022
D
244,728.56
$
Increased by:
Water Rents Levied
2,241,685.68
2,486,414.24
Decreased by:
Collections
2,247,078.46
$
Overpayments Applied
1,096.90
2,248,175.36
Balance December 31, 2023
D
238,238.88
$
D-7
1 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Additions By
Balance
Budget
Balance
Dec. 31, 2022
Capital Outlay
Dec. 31, 2023
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
78,470.36
78,470.36
General Structures
71,837.61
71,837.61
Meters, Meter Boxes and Vaults
384,623.86
384,623.86
Engineering
11,004.96
11,004.96
General Equipment
314,938.79
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
125,984.60
125,984.60
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
679,408.33
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
108,411.38
108,411.38
D-7
2 of 2
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Additions By
Balance
Budget
Balance
Dec. 31, 2022
Capital Outlay
Dec. 31, 2023
Computer Equipment
3,922.41
$
5,400.12
$
9,322.53
$
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
4,357.55
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
Well Rehabilitation
102,000.00
102,000.00
Generator for Well 6 and Well 6A
48,383.00
48,383.00
Main Street Booster Station Rehabilitation
40,938.00
40,938.00
Various Water Utility Improvements
417,000.00
417,000.00
Borough Hall Renovation
6,750.00
1,480.47
8,230.47
9,202,066.83
$
6,880.59
$
9,208,947.42
$
D
D
Water Budget Appropriations
2,400.12
$
Water Appropriation Reserves
4,480.47
6,880.59
$
D-8
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
Ord.
Balance
2023
Balance
No.
Improvement Description
Dec. 31, 2022
Authorizations
Dec. 31, 2023
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
936,586.00
936,586.00
10-19
Acquire and Install Generator
55,000.00
55,000.00
11-19
Various Water Utility Improvements
587,942.00
587,942.00
07-20
Various Water Utility Improvements
43,460.00
43,460.00
14-20
Water Main Improvements
500,000.00
500,000.00
12-21
Various Water Utility Improvements
280,000.00
280,000.00
20-21
Install Water Meters and Equipment
596,482.00
596,482.00
09-22
Installation of Water Main
360,000.00
360,000.00
12-23
Various Water Utility Improvements
792,400.00
$
792,400.00
4,784,725.42
$
792,400.00
$
5,577,125.42
$
D
D
D-9
BOROUGH OF ROCKAWAY
WATER UTILITY OPERATING FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2023
Balance
Balance
After
Paid or
Balance
Dec. 31, 2022
Modification
Charged
Lapsed
Operating:
Salaries and Wages
4,737.50
$
4,737.50
$
3,712.31
$
1,025.19
$
Other Expenses
170,858.98
189,444.21
189,444.21
Capital Outlay
51,250.00
32,664.77
4,480.47
28,184.30
Deferred Charges/Statutory Expenditures:
Statutory Expenditures:
Contribution to:
Public Employees' Retirment System
200.00
200.00
200.00
227,046.48
$
227,046.48
$
197,636.99
$
29,409.49
$
Ref.
Balance December 31, 2022:
Unencumbered
D
88,887.12
$
Encumbered
D
138,159.36
227,046.48
$
Cash Disbursements
137,636.99
$
Reserve for Carbon Filter Replacement
60,000.00
197,636.99
$
D-10
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Community
Reserve
Balance
Development
Capital
American
for Water
Balance
Ord.
Ordinance
Dec. 31, 2022
Block
Improvement
Rescue
Capital
Paid or
No.
Improvement Description
Date
Amount
Funded
Grant
Fund
Plan
Improvements
Charged
Funded
15-16
Various Water Utility Improvements
09/08/2016
774,000.00
$
137,129.52
$
81,706.72
$
55,422.80
$
09-17
Various Water Utility Improvements
05/10/2017
740,000.00
52,920.00
25,476.50
27,443.50
07-18
Various Water Utility Improvements
06/28/2018
1,206,470.00
271,279.68
49,731.96
221,547.72
10-19
Acquisition and Installation of Generator
07/11/2019
55,000.00
36,754.19
10,791.10
25,963.09
11-19
Various Water Utility Improvements
07/11/2019
1,098,000.00
42,051.91
24,899.91
17,152.00
07-20
Various Water Utility Improvements
06/11/2020
360,000.00
21,327.50
13,402.00
7,925.50
14-20
Water Main Improvements
10/22/2020
500,000.00
39,270.85
39,270.85
12-21
Various Water Utility Improvements
05/13/2021
280,000.00
171,694.93
1,694.93
170,000.00
20-21
Installation of Water Meters and Equipment
06/10/2021
596,482.00
435,843.80
435,843.80
09-22
Installation of Water Main
05/12/2022
360,000.00
360,000.00
85,905.89
274,094.11
12-23
Various Water Utility Improvements
06/08/2023
792,400.00
125,000.00
$
214,000.00
$
413,400.00
$
40,000.00
$
287,721.26
504,678.74
1,568,272.38
$
125,000.00
$
214,000.00
$
413,400.00
$
40,000.00
$
581,330.27
$
1,779,342.11
$
Ref.
D
D
Due Current Fund
12,650.00
$
Cash Disbursed
568,680.27
581,330.27
$
Dec. 31, 2023
2023 Authorizations
D-10
D-11
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2022
D
135,112.04
$
Increased by:
2023 Budget Appropriation
200,000.00
335,112.04
Decreased by:
Appropriated to Finance Improvement Authorizations
214,000.00
Balance December 31, 2023
D
121,112.04
$
D-12
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
Ord.
Date of
Balance
2023
Balance
No.
Improvement Description
Ordinance
Dec. 31, 2022
Authorizations
Dec. 31, 2023
09-22
Installation of Water Main
05/12/2022
360,000.00
$
360,000.00
$
12-23
Various Water Utility Improvements
06/08/2023
792,400.00
$
792,400.00
360,000.00
$
792,400.00
$
1,152,400.00
$
Ref.
D
D
D-12A
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
Ref.
Balance December 31, 2022
D
9,191,792.25
$
Increased by:
Capital Outlay:
2023 Budget Appropriations
2,400.12
$
2023 Appropriation Reserves
4,480.47
Serial Bonds Paid by Operating Budget
200,000.00
206,880.59
Balance December 31, 2023
D
9,398,672.84
$
D-13
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
YEAR ENDED DECEMBER 31, 2023
NOT APPLICABLE
D-14
1 of 2
Maturities of Bonds
Date of
Original
December 31, 2023
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2022
Matured
Dec. 31, 2023
Water Utility Refunding
Bonds of 2021
1/19/21
1,250,000.00
$
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%
1,170,000.00
$
75,000.00
$
1,095,000.00
$
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF WATER CAPITAL SERIAL BONDS
Outstanding
D-14
1 of 2
D-14
2 of 2
Outstanding
Date of
Original
December 31, 2023
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2022
Matured
Dec. 31, 2023
Water Utility Bonds of 2021
1/19/21
3,540,000.00
$
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%
3,265,000.00
$
125,000.00
$
3,140,000.00
$
4,435,000.00
$
200,000.00
$
4,235,000.00
$
Ref.
D
D
Maturities of Bonds
SCHEDULE OF WATER CAPITAL SERIAL BONDS
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
D-14
2 of 2
D-15
BOROUGH OF ROCKAWAY
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
YEAR ENDED DECEMBER 31, 2023
NOT APPLICABLE
BOROUGH OF ROCKAWAY
PART II
SINGLE AUDIT
YEAR ENDED DECEMBER 31, 2023
Schedule 1
Assistance
State
Grant
Amount
Federal
Listing
Pass Through
Grant Period
Award
Grant
Amount of
Cumulative
Paid to
Federal Funding Department/Cluster Cluster
Program
Number
Entity ID
From
To
Amount
Receipts
Expenditures
Expenditures
Subrecipients
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
03/03/21
12/31/24
656,900.00
$
334,702.06
$
520,697.77
$
Total U.S. Department of Treasury
334,702.06
520,697.77
U.S. Department of Health and Human Services:
(Passed through New Jersey Department
COVID-19 American Rescue Plan
of Community Affairs)
Act - Low Income Household
100-022-8050-
Water Assistance Program
93.499
030-052324
3/3/2023
12/31/24
22,091.13
22,091.13
$
22,091.13
22,091.13
Total U.S. Department of Treasury
22,091.13
22,091.13
22,091.13
TOTAL FEDERAL AWARDS
22,091.13
$
356,793.19
$
542,788.90
$
- 0 -
$
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2023
1
Schedule 2
1 of 3
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2023
New Jersey
Name of
State Grant
Grant Period
Grant
Amount
Amount of
Cumulative
Agency or Department
Program
Award Number
From
To
Award
Received
Expenditures
Expenditures
Department of Treasury:
Passed through the County of Morris:
Morris: Governor's Council on
Municipal Alliance to Prevent
100-082-2000-
Alcoholism and Drug Abuse
Alcoholism and Drug Abuse
044-995120
01/01/23
12/31/24
6,221.00
$
5,103.80
$
5,103.80
$
Subtotal - Department of Treasury
5,103.80
5,103.80
Department of Transportation:
Municipal Aid -
480-078-
Mount Pleasant Avenue
6320-AO1-606282 01/01/22
12/31/24
293,800.00
220,350.00
$
276,653.06
293,800.00
Municipal Aid - Crestwood Road
480-078-
and Addison Avenue
6320-APF-606283
01/01/23
12/31/24
199,815.00
149,861.25
173,264.36
173,264.36
Municipal Aid -
480-078-
Lakeside Road
6320-AN8-606280 01/01/20
12/31/24
209,368.26
48,529.57
209,368.26
Subtotal - Department of Transportation
418,740.82
449,917.42
676,432.62
Department of Environmental
Clean Communities Act
765-042-4900-
01/01/22
12/31/23
13,377.44
12,767.34
13,377.44
Protection
004-178910
01/01/23
12/31/24
11,500.00
11,500.00
645.31
645.31
01/01/23
12/31/24
3,504.43
3,504.43
15,004.43
13,412.65
14,022.75
Recycling Tonnage Grant
100-042-4910-
01/01/20
12/31/23
5,825.52
1,277.30
5,825.52
224-238940
01/01/21
12/31/23
8,635.06
5,700.06
8,635.06
01/01/22
12/31/23
14,067.73
5,825.52
4,371.59
4,371.59
01/01/23
12/31/24
9,909.66
4,084.14
9,909.66
11,348.95
18,832.17
2
Schedule 2
2 of 3
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2023
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 Environmental
Protection
(Passed through NJ Economic
Hazardous Discharge
100-042-4850-
Development Authority)
Site Remediation Fund
099-290400
01/01/23
12/31/24
123,060.47
$
123,060.47
$
123,060.47
$
123,060.47
$
123,060.47
123,060.47
123,060.47
Stormwater Assistance Grant
100-042-4850-
099-290400
01/01/23
12/31/24
15,000.00
15,000.00
15,000.00
Subtotal - Department of Environmental Protection
162,974.56
147,822.07
155,915.39
Department of Law and Public
Body Armor
718-066-1020-
01/01/23
12/31/23
2,841.60
2,841.60
2,841.60
Safety
Replacement Fund
100-090160
01/01/22
12/31/22
1,081.01
1,081.01
1,081.01
01/01/23
12/31/24
1,651.79
1,651.79
1,651.79
3,922.61
3,922.61
Safe and Secure
100-066-1020-
01/01/22
12/31/22
15,880.00
5,413.60
15,880.00
Communities
100-090940
01/01/23
12/31/23
15,228.00
4,560.00
15,228.00
15,228.00
9,973.60
15,228.00
31,108.00
Body-Worn Camera Program
495-066-1020-
100-092120
01/01/21
12/31/22
34,646.00
27,716.80
34,646.00
Subtotal - Department of Law and Public Safety
39,342.19
19,150.61
85,285.62
3
Schedule 2
3 of 3
BOROUGH OF ROCKAWAY
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2023
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 Community Affairs
100-304-8020-
Affairs
Lead Programs Assistance Grant
022-023110
01/01/23
12/31/24
2,200.00
$
2,200.00
$
Local Recreation
495-668-8030-
Improvement Grant
022-041190
01/01/23
12/31/24
75,000.00
75,000.00
75,000.00
$
75,000.00
$
Subtotal - Department of Community Affairs
77,200.00
75,000.00
75,000.00
TOTAL STATE AWARDS
698,257.57
$
696,993.90
$
997,737.43
$
SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
4
BOROUGH OF ROCKAWAY
NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED DECEMBER 31, 2023
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, 2023. 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.
5
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, 2023 and 2022, and the related notes to the financial statements and have issued our
report thereon dated May 13, 2024. 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 Borough’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Borough’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the Borough’s financial statements
will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not 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 2023-001, that we consider to be a significant deficiency.
6
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
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 13, 2024
NISIVOCCIA LLP
Kathryn L. Mantell
Certified Public Accountant
Registered Municipal Accountant No. 447
7
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2023
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, 2023 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 2023-001
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.
8
BOROUGH OF ROCKAWAY
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2023
(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 2023-001 (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.
9
BOROUGH OF ROCKAWAY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2023
The Borough’s prior year audit Finding 2022-001 regarding segregation of duties has not been resolved due to
budgetary constraints and is included as Finding 2023-001.
10
BOROUGH OF ROCKAWAY
PART III
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2023
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.
11
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4 (Cont’d)
The minutes indicated that bids were requested by public advertising per N.J.S. 40A:11-4. The minutes also
indicated that resolutions were adopted authorizing the awarding of contracts or agreements for "Professional
Services," per N.J.S. 40A:11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation
could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut
violations existed. None were noted.
Collection of Interest on Delinquent Taxes and Assessments
The statute provides the method for authorizing interest and the maximum rate to be charged for the nonpayment
of taxes or assessments on or before the date when they would become delinquent.
On January 3, 2023, 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, 2023, at the rate or rates heretofore governing, and
on all delinquents on and after January 1, 2023 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 at
year end; 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.
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
2023
16
2022
16
2021
15
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.
12
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 2023 and 2024 Taxes
20
Delinquent Taxes
15
Tax Title Liens
3
Payment of 2023 Water Rents
10
Payment of 2023 Sewer Rents
10
Delinquent Water Rents
10
Delinquent Sewer Rents
10
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.
13
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, 2023.
RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023
Balance
Balance
Dec. 31, 2022
Receipts
Disbursements
Dec. 31, 2023
Municipal Treasurer:
Fines and Costs
1,016.74
$
22,433.98
$
22,201.90
$
1,248.82
$
Parking Offense Adjudication Act
2.00
36.00
38.00
Interest:
Regular Account
10.67
167.60
178.27
Bail Account
8.09
8.09
Municipal Treasurer - Shared Court:
Public Defender
55.00
627.00
632.00
50.00
State Treasurer
730.39
11,925.15
12,011.32
644.22
County Treasurer
321.50
8,677.50
8,425.50
573.50
Weights and Measures
14,696.00
14,240.00
456.00
Bail Account
550.00
4,500.00
5,050.00
2,686.30
$
63,071.32
$
62,785.08
$
2,972.54
$
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 which
grants which will be collected and which grants should be canceled.
Governmental Accounting Standards Board (GASB) Statements
GASB Statement No. 101, Compensated Absences, is effective for the year ended December 31, 2024. This
statement required that the liability for compensated absences to be calculated for 1 – leave that has not been used
and 2 – leave that has been used but not yet paid. The liability should be recognized for leave that has not been used
if (a) – the leave is attributable to services already rendered, (b) the leave accumulates and (c) the leave is more
likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as
employment policies related to compensated absences and historical information about the use or payment of
compensated absences. Leave that is more likely than not to be settled through conversion to defined benefit
postemployment benefits should not be included in the liability for compensated absences. The Statement directs
that for leave that has not been used then calculation should generally use an employee’s pay rate as of the date of
the financial statements.
14
BOROUGH OF ROCKAWAY
COMMENTS AND RECOMMENDATIONS
(Continued)
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 these are 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.
The American Rescue Plan funding must be obligated by December 31, 2024 and the liquidation of the obligation
must be completed by December 31, 2026.
Status of Prior Year Recommendations
The Borough has initiated a corrective action plan to resolve comments and recommendations from the 2022 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.
15
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.
16
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Borough Clerk
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Chief Financial Officer/Treasurer/Administrator
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