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2018 - Audit Report

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Executive Summary

This is a Comprehensive Annual Financial Report (CAFR) for the Borough of Roosevelt, New Jersey, for the year ended December 31, 2018. The report includes financial statements and supplemental schedules, and is presented in four sections: Introductory, Financial, Statistical, and Auditor's Comments and Recommendations. The financial statements were audited by Samuel Klein and Company, and their report expresses an unqualified opinion on the regulatory basis, stating that the financial statements are presented fairly in conformity with the accounting principles prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The Current Fund had revenues of $1,410,682.72 and expenditures of $1,125,429.41 in 2018, resulting in an increase in fund balance of $285,253.26. The Water-Sewer Utility Operating Fund generated operating revenues of $880,238.86 and incurred operating expenses of $880,238.86. The Borough is actively involved in decisions regarding the operation of the Borough and is searching for new and innovative ways to provide cost-efficient services to its residents, and entered into a contract with an outside service vendor to oversee the operation of the water and sewer utility in order to improve operational efficiencies and savings. The Borough has gross debt authorized and outstanding of $5,202,716.79, with $4,716,466.79 attributed to the Water-Sewer Utility and $486,250.00 to the General Capital Fund.

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--- Document: 2018 - Audit Report Document ---
COMPREHENSIVE ANNUAL FINANCIAL REPORT OF
BOROUGH OF ROOSEVELT
33 North Rochdale Avenue
Roosevelt, New Jersey 08555
FOR THE YEAR ENDED DECEMBER 31, 2018
Presented by
George Lang
Chief Financial Officer
Borough of Roosevelt
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2018

INTRODUCTORY SECTION
Letter of Transmittal
Roster of Officials
Consultants and Advisors
FINANCIAL SECTION
Independent Auditors' Report
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
Exhibit
Number
GENERAL PURPOSE FINANCIAL STATEMENTS

Page
1-7
8
9

10-12

13-14
A
A-1

Combined Statement of Assets, Liabilities, Reserves and Fund
Balance - All Funds and Accounts - Regulatory Basis
Combined Statement of Revenues, Expenses and Changes in
Fund Balance Regulatory Basis Budget and Actual
Current and Water-Sewer Utility Operating Funds
15-16

17-19
A-2

Statement of Change in Fund Balance - General Capital Fund
Regulatory Basis
20
A-3

Statement of Change in Fund Balance
Capital Fund - Regulatory Basis
Water-Sewer Utility
21
Notes to Financial Statements
22-65
REQUIRED SUPPLEMENTARY INFORMATION
RSI-1 Schedule of Borough Contributions Public Employees
Retirement System (PERS)
RSI-2 Schedule of Borough's Proportionate Share of Net Pension
Liability - Public Employees Retirement System (PERS)
66

67
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2018

FINANCIAL SECTION (CONTINUED)
Exhibit
Number
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS
STATEMENTS

Current Fund:
Page
B
Comparative Statement of Assets, Liabilities and Fund
Balance - Regulatory Basis
68-69
B-1

Comparative Statement of Operations and Changes in Fund
Balance - Regulatory Basis
70-71
B-2
Statement of Revenues - Regulatory Basis
72
B-3
Statement of Expenditures - Regulatory Basis
73-77
B-4

Statement of Taxes Receivable and Analysis of Property Tax
Levy
78-79
B-5
Statement of Foreclosed Property
80
B-6
Statement of 2017 Appropriation Reserves
81-82
B-7
Statement of Local District School Taxes Payable
83
B-8
Statement of Grants Receivable - Grant Fund
84
B-9
Statement of Appropriated Reserves - Grant Fund
85
Trust and Agency Fund:
C
Combining Balance Sheets - Regulatory Basis
86
C-1
Statement of Reserve for Animal Control Expenditures
87
C-2
Statement of Reserve for Trust Deposits
88
C-3
Statement of Payroll Deductions
89
General Capital Fund:
D
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
90
D-1
Analysis of Cash and Cash Equivalents
91
D-2
Statement of Intergovernmental Accounts Receivable
92
D-3
Statement of Deferred Charges to Future Taxation, Unfunded
93
D-4
Statement of Improvement Authorizations
94
D-5
Statement of Capital Improvement Fund
95
D-6
Statement of Bonds Payable
96
D-7
Statement of Bonds and Notes Authorized but Not Issued
97
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2018

FINANCIAL SECTION (CONTINUED)
Exhibit
Number
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS
STATEMENTS (CONTINUED)

Water-Sewer Utility Operating Fund:
Page
E
Comparative Statement of Assets, Liabilities, and Reserves
Regulatory Basis
98
E-1

Comparative Statement of Operations and Change in
Operating Fund Balance - Regulatory Basis
99
E-2
Statement of Revenues - Regulatory Basis
100
E-3
Statement of Expenditures - Regulatory Basis
101
E-4
Statement of Consumer Accounts Receivable
102
E-5
Statement of 2017 Appropriation Reserves
103
E-6
Schedule of Accrued Interest on Bonds and Loans
104
Water-Sewer Utility Capital Fund:
F
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
105-106
F-1
Analysis of Cash and Cash Equivalents
107
F-2
Statement of Fixed Capital
108
F-3
Statement of Fixed Capital Authorized and Uncompleted
109
F-4
Statement of Loans Payable – MCIA
110
F-5
Statement of Loans Payable - NJIBank
111-113
F-6
Statement of Farmer's Home Administration Loan
114
F-7
Statement of Bond Anticipation Notes
115
F-8
Statement of Improvement Authorizations
116
F-9
Statement of Bonds and Notes Authorized But Not Issued
117
Capital Asset:
G
Comparative Statement of Capital Assets
118
STATISTICAL SECTION

H-1
Current Fund Expenditures by Function
119
H-2 Current Fund Revenues by Function
120
H-3
Water-Sewer Utility Operating Fund Expenditures by Function
121
H-4
Property Tax Rates Per $100 of Assessed Valuation
122
H-5
Municipal Property Tax Levies and Collections
123
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2018

Page
Exhibit
Number
STATISTICAL SECTION (CONTINUED)

H-6 Delinquent Taxes and Tax Title Liens
124
H-7
Assessed and Estimated Actual Value of Taxable Property
125
H-8
Schedule of Ten Largest Taxpayers
126
H-9

H-10
Computation of Legal Debt Margin
Ratio of Bonded Debt, Bond Anticipation Notes and Loans to
Equalized Value and Net Debt Per Capita
127

128
H-11
Calculation of "Self-Liquidating Purpose" Per N.J.S. 40A:2-45
Water-Sewer Utility Operating Fund
129
H-12 Demographic Statistics
130
H-13 Miscellaneous Statistics
131
AUDITOR'S COMMENTS AND RECOMMENDATIONS

General Comments:
Contracts and Agreements Required to be Advertised for N.J.S. 40A:11-4
132
Collection of Interest on Delinquent Taxes and Utility Charges
133-134
Delinquent Taxes and Tax Title Liens
134
Water-Sewer Utility Receivables
134
Cash Balances
134
Revenues
135
Expenditures
135
Payroll
135
Miscellaneous Comments
135
Surety Bond Coverage
135
Municipal Court
136
Interfund Receivable/Payable
136
Other Matters
136
Appreciation
136
Following-up on Prior Year Recommendation
Recommendations
136
INTRODUCTORY SECTION
U. S.
Borough of Roosevelt
Jersey Homestead Historic District
P.O. BOX 128 33 N. ROCHDALE AVENUE
ROOSEVELT, NEW JERSEY 08555
OFFICE: (609) 448-0539 . FAX: (609) 448-8716
July 2, 2020
TO:
The Honorable Mayor and Council Members
RE:
Comprehensive Annual Financial Report for the
Year Ended December 31, 2018
The Comprehensive Annual Financial Report for the Borough of Roosevelt, County of
Monmouth, State of New Jersey, is submitted herewith and includes financial statements and
supplemental schedules. I believe that it is accurate in all material respects; that it is presented
in a manner designed to set forth fairly the financial position and results of operations of the
Borough of Roosevelt as measured by the financial activity of its various funds and account
groups; and that all disclosures necessary to enable the reader to gain maximum understanding
of the Borough's financial affairs have been included.
The Comprehensive Annual Financial Report (CAFR) is presented in four (4) sections:
The Introductory, Financial, Statistical and Auditor's Comments and Recommendations.
Introductory Section includes this transmittal letter, the Borough's Organizational Chart and a
Roster of Officials. The Financial Section includes the annual financial statements and
individual fund financial schedules, as well as the Independent Auditors' Report. The Statistical
Section includes selected financial, economic and demographic information, generally
presented on a multi-year basis. Responsibility for completeness and clarity of the report,
including disclosures, rests with the Chief Financial Officer and ultimately with the Mayor and
Council. The fourth and final section is prepared by the Independent Auditor and contains their
required annual comments and recommendations, if any, to the Mayor and Council. The Mayor
and Council are required to adopt a plan of action on the implementation of any audit
recommendations.,
The financial statements have been audited by Gerard Stankiewicz, CPA, RMA of Samuel Klein
and Company, Certified Public Accountants, whose opinion is expressed in the Financial
Section. Please note that the Independent Auditors' Report on the regulatory basis is
unqualified and states that the financial statements - regulatory basis, are presented fairly in
conformity with the basis of accounting as prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
-1-
PRESENT AND FUTURE CHALLENGES
During the 2017 calendar year, the Borough of Roosevelt has made progress in a number of
operational and financial areas; however, this administration is clearly aware of the issues and
problems that continue to demand our attention and improvement. While we take pride in the
accomplishments of the past year, we are mindful of the issues that continue to face us.
CURRENT FUND
In 2018, our Current Fund, which encompasses the general government functions of the
Borough had revenues, exclusive of fund balance utilized of $1,410,682.72 expenditures of
$1,125,429.41 and an increase of $285,253.26 in fund balance at year-end. The increase was
caused by interfund advance charges from 2017 returned to fund balance that created
revenues. The Current Fund total revenues increased approximately $80,838.64, or 4.89%
compared to 2017 caused primarily by increases in other credits.
Local Sources:
2018
2017
Increase/(Decrease)
Amount
Percent
Fund Balance Utilized
$
323,900.00 $ 345,000.00 $ (21,100.00)
(6.12)%
Current Tax Revenue
Delinquent Tax Revenue
792,752.02
66,543.49
762,496.52
48,904.30
14,590.00
30,255.50
17,639.19
3.97
36.07
Miscellaneous Revenues Anticipated
14,590.00
#DIV/0!
Nonbudget Revenues
Other Credits to Income
43,915.29
406,438.66
43,869.53
367,087.08
45.76
39,351.58
0.10
10.72
Total Revenues from Local Sources $ 1,648,139.46 $ 1,567,357.43 $
80,782.03
5.15%
State Aid
Grants
81,849.00
4,594.26
81,849.00
4,537.65
0.00
56.61
0.00
1.25
Total Current Fund Revenues
$ 1,734,582.72 $ 1,653,744.08 $
80,838.64
4.89 %
1. Current and Delinquent Taxes - These are the collections on taxes levied on all property
owners residing in the Borough.
2. State Aid and Grants - This represents funds received from the State of New Jersey or the
Federal Government in the form of grants or direct aid.
3. Miscellaneous Revenues Anticipated - This represents all of the miscellaneous revenues of
the Borough including fees, fines, licenses, interest and other direct charges, except those
detailed separately above.
4. Nonbudget Revenue and Other Credits - These are items that are not budgeted as revenue
items, however, are included in the overall revenue.
-2-
The decrease in expenditures in 2018 compared to 2017 was $7,002.43 or .62%. Below is a
comparison of the Current Fund expenditures:
Within "CAPS":
General Government
Land Use
Increase/(Decrease)
2018
2017
Amount
Percent
$
295,136.00 $
359,486.00 $
(64,350.00)
(17.90) %
30,200.00
30,700.00
(500.00)
(1.63)
Insurance
36,500.00
58,500.00
(22,000.00)
(37.61)
Public Works
169,450.00
123,250.00
46,200.00
37.48
Health and Human Services
14,800.00
16,200.00
(1,400.00)
(8.64)
Parks and Recreation
30,300.00
29,200.00
1,100.00
3.77
Utilities
29,800.00
29,500.00
300.00
1.02
Other Common Functions
2,200.00
1,500.00
700.00
46.67
Public Safety
36,600.00
38,600.00
(2,000.00)
(5.18)
Sanitation
32,000.00
32,000.00
0.00
0.00
Deferred Charges and Statutory
Expenditures
115,033.00
78,000.00
37,033.00
47.48
Total Expenditures within "CAPS"
$
792,019.00 $
796,936.00 $
(4,917.00)
(0.62)%
Outside "CAPS":
Public Safety
$
37,421.00 $
26,171.00
11,250.00
42.99
Sanitation
66,945.20
65,660.00
1,285.20
1.96
Grants
4,594.26
4,537.65
56.61
1.25
Capital Improvements
30,000.00
30,000.00
0.00
0.00
Deferred Charges and Statutory
Expenditures
1,000.00
15,377.24
(14,377.24)
(93.50)
Debt Service
13,450.00
13,750.00
(300.00)
(2.18)
Total Expenditures outside 'CAPS"
$
153,410.46 $
155,495.89 $
(2,085.43)
(1.34)%
Reserve for Uncollected Taxes
$
180,000.00 $
180,000.00 $
0.00
0.00
$ 1,125,429.46 $ 1,132,431.89 $
(7,002.43)
(0.62) %
For the foreseeable future, our elected and appointed leaders will have to deal with the need to
maintain stable tax rates, and deal with serious water-sewer infrastructure problems. The
governing body and the administration will have to introduce new ideas and creative solutions to
solve these problems.
The remainder of this transmittal letter will provide greater details relating to our progress during
2018 and some of our plans for the future.
-3-
WATER-SEWER UTILITY FUND
Our Water-Sewer Utility Operating Fund generated operating revenues exclusive of fund
balance $880,238.86 and incurred operating expenses of $880,238.86. The decrease in
operating expenses from 2018 to 2017 was 17.609.04 or 2.04%. The following schedule
summarizes revenues and expenses for 2018 and 2017.
2018
2017
Increase/(Decrease)
Amount
Percent
Revenues
Fund Balance Utilized
$
21,975.11 $ (21,975.11)
(100.00) %
Rents
750,750.73
$
713,820.20
36,930.53
5.17
Cell Tower Fees
84,574.66
79,612.29
4,962.37
6.23
Deficit General Budget
1,469.25
20,231.88
Interest on Delinquent Rents
13,979.32
10,254.58
3,724.74
36.32
Nonbudget Revenue
533.21
111.57
421.64
377.92
Other Credits to Income:
Unexpended Balance of
Appropriation Reserves
28,931.69
16,624.19
12,307.50
74.03
$ 880,238.86 $
862,629.82 $
36,371.67
4.22 %
Expenditures
Operating
$
584,139.00 $
566,349.33 $
17,789.67
3.14 %
Debt Service
276,499.86
273,709.49
2,790.37
1.02
Deferred Charges and
Statutory Expenditures
19,600.00
22,571.00
(2,971.00)
(13.16)
$
880,238.86 $ 862,629.82 $ 17,609.04
2.04 %
STATUTORY AUTHORITY
The Borough is organized and administered in accordance with the provisions of New Jersey
State Law and consists of an elected Mayor and a six (6) member Council responsible for
providing all basic governmental services, except education, to its 882 local residents.
The Borough, pursuant to law, has the authority to levy taxes and issue debt.
In accordance with accounting principles generally accepted in the United States of America, as
prescribed by the Governmental Accounting Standards Board, the Borough, for reporting entity
determination purposes, is considered an independent government entity.
-4-
MAJOR ACTIVITIES AFFECTING BUDGET/FINANCIAL CONDITIONS
The Borough Council is actively involved in all decisions of the operation of the Borough and
has expressed a genuine concern for all residents. The Governing Body is consistently
searching for new and innovative ways to provide cost efficient services to its residents.
The Borough maintains its own Water and Sewer Treatment Plant.
The Borough's Water-Sewer Utility Budget is always under review and evaluation of the user
charges to support the budget is done frequently in order for the utility to remain solvent. Major
repairs and upkeep are done after careful scrutiny and with great concern by the Borough's
Governing Body.
The Borough also annually appropriates funds for road reconstruction; however, the funding
mix usually includes NJDOT grants.
The Borough provides for emergency response dispatching through Monmouth County 911.
The Borough of Roosevelt is unique in that it was designated as a historic district by the State
of New Jersey since the forefathers of the town were part of a social experiment in the 1930's
post-depression era. The Borough is trying to maintain the charming character of the
community as the millennium began. The Borough is also known for many of its artistic
residents.
The Borough recently after much study and thought entered into a contract with an outside
service vendor to oversee the operation of the water and sewer utility. It is anticipated that
there will be operational efficiencies and savings.
The Borough is a participant in the State of New Jersey Infrastructure Trust, NJI Bank, a low
interest loan program which is utilized to do major repairs to the Borough water tower.
CASH MANAGEMENT
Bank balances are insured up to $250,000.00 in the aggregate by the Federal Deposit
Insurance Corporation for each bank. In addition, the State of New Jersey Unit Deposit
Protection Act insures the remaining balance of funds on deposit in registered depositories. At
December 31, 2018, all cash funds on deposit were in registered depositories and were
covered by these insurers.
The Borough invests all surplus funds for appropriate periods of time as determined by the
Chief Financial Officer. During 2018, idle funds were invested in a money market fund. The
Chief Financial Officer of the Borough monitors available cash balances for investment on an
ongoing basis in order to maximize earnings on invested cash. The Borough has not entered
into any compensating balance agreements.
-5-
ACCOUNTING AND BUDGET INFORMATION
Accounting
The Borough maintains a computerized accounting system to record all financial transactions.
In developing and evaluating the Borough's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss
from unauthorized use or disposition; and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable
assurance recognizes that (1) the cost of controls should not exceed the benefits expected to
be derived; and (2) the evaluation of costs and benefits requires estimates and judgment by
management.
Management of the Borough is responsible for establishing and maintaining an adequate
internal control structure.
Budget
The local budget law for the State of New Jersey requires every local unit to adopt an Operating
Budget in the form required by the Division of Local Government Services (the "Division"),
Department of Community Affairs of the State of New Jersey. Certain items of revenue and
appropriation are regulated by law and the proposed budget must be certified by the Director of
the Division prior to final adoption. The Budget Law requires each local unit to appropriate
sufficient funds for the payment of current debt service, and the Director is required to review
the adequacy of such appropriations, unless a specific amount is required by law. The review
function, focusing on anticipated revenues, serves to protect the solvency of all local units.
Section 5:30-4 of the New Jersey Administrative Code provides that every local unit that
proposes to spend $25,000.00 or more on capital equipment, construction or improvements
must prepare a Capital Budget. If the Borough's population exceeds 10,000 the Capital
Program shall include by title all projects anticipated for the budget year and the five
succeeding years, with the estimated costs and the anticipated financing by sources and
amounts.
A Capital Budget Section included with the Annual Budget does not in itself confer any
authorization to raise or expend funds. Rather, it is a document used as part of the local unit's
planning and management program. Specific authorization to expend funds for purposes
described in the Capital Budget must be granted separately, through the adoption of a bond
ordinance, by appropriating funds from the Capital Improvement Fund, or other lawful means.
The budget of the Borough is categorized into appropriations by function. Each appropriation
represents a service program or division within the Borough. Funds are appropriated to each of
the budget lines by the Mayor and Council in accordance with procedures prescribed by the
State of New Jersey Local Budget Law.
-6-
Distinct appropriations are required for "salaries and wages" and for "other expenses". The
Borough delineates each appropriation into sub accounts by budget codes.
The Chief Financial Officer monitors expenditures throughout the fiscal year to ensure that
spending remains within the amounts of funds authorized. Budget modifications are processed
in the last two months of the year to transfer funds from one area to another as needed.
DEBT ADMINISTRATION
The authorized bonded indebtedness of municipalities in the State of New Jersey is limited by
statute to an amount equal to 32% of their equalized value. The equalized valuation basis of
the Borough is set by statute as the average for the last three years of the equalized value of all
taxable real property and improvements and certain railroad property within its boundaries as
annually determined by the State Board of Taxation.
The Borough has gross debt authorized and outstanding of $5,202,716.79 of which
$4,716,466.79 is attributed to the Water-Sewer Utility and $486,250.00 is attributed to the
General Capital Fund.
RISK MANAGEMENT
The Borough, like many other municipalities in the early '80's, was faced with an insurance
crisis. It was unable to obtain coverage at any price. The Borough banded together with other
municipalities to form the Monmouth County Municipal Joint Insurance and the New Jersey
Municipal Excess Liability Funds. These Funds procure insurance on a pooled basis, generally
self-insuring the initial level of loss for workers' compensation, property, general liability and
automobile. The Funds provide their members with risk management services, including the
defense of and settlement of claims and establish reasonable and necessary loss reduction and
prevention procedures to be followed by the members.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not be accomplished without the efficient
and dedicated services of the entire staff of the Administration Department and the Finance
Department. I would also like to express my appreciation to Gerard Stankiewicz, CPA, RMA of
Samuel Klein and Company for his help and assistance in preparation of the Borough's CAFR.
Respectfully submitted,
George Lang
George Lang
Chief Financial Officer
-7-
BOROUGH OF ROOSEVELT
ROSTER OF OFFICIALS
DECEMBER 31, 2018
Governing Body
Peggy Malkin, Mayor
Joseph Trammell, Council President
Steven Bowen, Council Member (effective April 23, 2018)
Luke Dermody (effective November 26, 2018)
Louis Esakoff (effective November 26, 2018)
Michael Hamilton, Council Member
Deirdre Sheean, Council Member
Other Officials
Kathleen Hart, Borough Clerk
George J. Lang, Chief Financial Officer
Ana Debevec, Treasurer
Salvatore P. Cannizzaro, Tax Collector and Water-Sewer Utility Collector
Donna Taylor, Tax Assessor
Carmela Roberts, Borough Utility Engineer
Gregory J. Cannon, Esq., Borough Attorney
Nicole Sonnenblick, Municipal Court Judge
Diane Canzanella, Municipal Court Administrator (through May 31, 2018)
Sonia K. Paxtor, Municipal Court Administrator (effective June 23, 2018)
Michele Donato, Planning Board Attorney
-8-
BOROUGH OF ROOSEVELT
CONSULTANTS AND ADVISORS
DECEMBER 31, 2018
AUDIT FIRM
Gerard Stankiewicz, CPA, RMA, PSA
of the firm
Samuel Klein and Company
36 West Main Street
Suite 303
Freehold, New Jersey 07728
ATTORNEY
Gregory J. Cannon, Esq.
Sobel Han, LLP
105 Reids Hill Road
Aberdeen, NJ 07747
BOND COUNSEL
Gluck Walrath LLP
11 Wharf Avenue
Red Bank, NJ 07701
OFFICIAL DEPOSITORY
1st Constitution Bank
-9-
FINANCIAL SECTION
SAMUEL KLEIN AND COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
550 BROAD STREET, 11TH FLOOR
NEWARK, N.J. 07102-9969
PHONE (973) 624-6100
FAX (973) 624-6101
36 WEST MAIN STREET, SUITE 303
FREEHOLD, N.J. 07728-2291
PHONE (732) 780-2600
FAX (732) 780-1030
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Roosevelt
County of Monmouth
State of New Jersey
To the Honorable Mayor and Members of the Borough Council:
Report on the Financial Statements
We have audited the financial statements regulatory basis of the various funds and account groups of
the Borough of Roosevelt, County of Monmouth, State of New Jersey as of December 31, 2018, and the
related statement of operations and change in fund balance regulatory basis for the year then ended,
the related statement of revenues regulatory basis, statement of expenditures regulatory basis, and
the related notes to the financial statements for the year then ended.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
regulatory basis, in accordance with accounting principles and practices prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements regulatory basis, based on our
audit. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States and auditing standards prescribed by
the Division of Local Government Service, Department of Community Affairs, State of New Jersey. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control.
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
www.samuelklein-cpa-rma.com
10-
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements regulatory basis, the financial statements are
prepared by the Borough on a basis of the financial reporting provisions of the regulatory basis of the
accounting and budget laws of the Division of Local Government Services, Department of Community
Affairs, State of Jersey which is a basis of accounting other than accounting principles generally accepted
in the United States of America, to meet the requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting
described in Note 1 and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matters discussed in the "Basis for Adverse Opinion on
the United States Generally Accepted Accounting Principles" paragraph, the financial statements referred
to above do not present fairly in accordance with accounting principles generally accepted in the United
States of America, the financial position of each fund of the Borough of Roosevelt, County of Monmouth,
State of New Jersey as of December 31, 2018, and change in financial position or cash flows thereof for
the year then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects the
financial statements regulatory basis of the various funds and account groups of the Borough of
Roosevelt, County of Monmouth, State of New Jersey, as of December 31, 2018, and the results of its
operations and change in fund balance of such funds regulatory basis for the year then ended, and the
revenues - regulatory basis, expenditures - regulatory basis of the various funds and account groups for
the year ended December 31, 2018 in conformity with accounting principles and practices prescribed by
the Division of Local Government Services, Department of Community Affairs, State of New Jersey as
described in Note 1.
Other Information
Our audit was made for the purpose of forming an opinion on the financial statements regulatory basis
referred to in the first paragraph as a whole. The supplemental financial statements presented for the
various funds are presented for purposes of additional analysis as required by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey and is not a required part
of the above 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 financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing the reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements of each of the respective
individual funds and account group taken as a whole.
- 11-
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Report on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that pension plan
information, include the Notes thereto, (Required Supplementary Information), as listed in the table of
contents be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements is required by the Governmental Accounting Standards

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"...es and Tax Title Liens 134 Water-Sewer Utility Receivables 134 Cash Balances 134 Revenues 135 Expenditures 135 Payroll 135 Miscellaneous Comments 135 Surety Bond Coverage 135 Municipal Court 136 Interfund Receivable/Payable 136 Other Matters 136 Appreciation 136 Following-up on Prior Year Recommendation Recomm..."

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