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2022 - Audit Report

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Executive Summary

This document is the Annual Comprehensive Financial Report (ACFR) for the Borough of Roosevelt, New Jersey, for the year ended December 31, 2022. The report includes financial statements, supplemental schedules, and an independent auditor's report from Samuel Klein and Company, LLP. The report covers the Borough's financial position, results of operations, and compliance with accounting practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The report is divided into four sections: Introductory, Financial, Statistical, and Auditor's Comments and Recommendations. It details the financial activities of various funds, including the Current Fund and the Water-Sewer Utility Fund. The report also addresses present and future challenges, such as maintaining stable tax rates and dealing with water-sewer infrastructure problems.

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--- Document: 2022 - Audit Report Document ---
ANNUAL COMPREHENSIVE FINANCIAL REPORT OF
BOROUGH OF ROOSEVELT
33 North Rochdale Avenue
Roosevelt, New Jersey 08555
FOR THE YEAR ENDED DECEMBER 31, 2022
Presented by
George Lang
Chief Financial Officer
Borough of Roosevelt
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2022
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
10-13
14-15
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
16-17
18-20
A-2
Statement of Change in Fund Balance - General Capital Fund -
Regulatory Basis
21
A-3
Statement of Change in Fund Balance
Water-Sewer Utility
Capital Fund - Regulatory Basis
22
Notes to Financial Statements
23-62
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)
63
64
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
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
65-66
B-1
Comparative Statement of Operations and Changes in Fund
Balance - Regulatory Basis
67-68
B-2
Statement of Revenues - Regulatory Basis
69
B-3
Statement of Expenditures - Regulatory Basis
70-74
B-4
Schedule of Cash - Treasurer
75
B-5
Statement of Taxes Receivable and Analysis of Property Tax
Levy
76-77
B-6
Statement of Foreclosed Property
78
B-7
Statement of 2021 Appropriation Reserves
79-80
B-8
Statement of Local District School Taxes Payable
81
B-9
Statement of Grants Receivable - Grant Fund
82
B-10
B-11
Statement of Appropriated Reserves - Grant Fund
Statement of Unappropriated Reserves - Grant Fund
83
84
Trust and Agency Fund:
C
Combining Balance Sheets - Regulatory Basis
C-1
Schedule of Trust Cash - Treasurer
C-2
Statement of Reserve for Animal Control Expenditures
C-3
Statement of Reserve for Trust Deposits
C-4
Statement of Payroll Deductions
85
86
87
88
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
Schedule of General Capital Fund Cash - Treasurer
92
D-3
D-4
Statement of Intergovernmental Accounts Receivable
Statement of Deferred Charges to Future Taxation, Unfunded
93
94
D-5
Statement of Improvement Authorizations
95
D-6
Statement of Capital Improvement Fund
96
D-7
Statement of Bonds Payable
97
D-8
Statement of Bond Anticipation Note
98
D-9
Statement of Bonds and Notes Authorized but Not Issued
99
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
FINANCIAL SECTION (CONTINUED)
Exhibit
Number
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS STATEMENTS
Page
(CONTINUED)
Water-Sewer Utility Operating Fund:
E
Comparative Statement of Assets, Liabilities, and Reserves
Regulatory Basis
100
E-1
Comparative Statement of Operations and Change in
Operating Fund Balance - Regulatory Basis
101
E-2
Statement of Revenues - Regulatory Basis
102
E-3
E-4
E-5
Statement of Expenditures - Regulatory Basis
Schedule of Utility Cash - Collector/Treasurer
Statement of Consumer Accounts Receivable
103
104
105
E-6
Statement of 2021 Appropriation Reserves
106
E-7
Schedule of Accrued Interest on Bonds, Loans and Notes
107
Water-Sewer Utility Capital Fund:
F
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
108-109
F-1
Analysis of Cash and Cash Equivalents
110
F-2
Schedule of Utility Capital - Cash
111
F-3
Statement of Fixed Capital
112
F-4
Statement of Fixed Capital Authorized and Uncompleted
113
F-5
Statement of Loan Payable – MCIA
114
F-6
Statement of Loans Payable - NJIBank
115-117
F-7
Statement of Farmer's Home Administration Loan
118
F-8
Statement of Bond Anticipation Notes
119
F-9
Statement of Improvement Authorizations
120
F-10
Statement of Bonds and Notes Authorized But Not Issued
121
Capital Asset:
G
Comparative Statement of Capital Assets
122
SUPPLEMENTARY & STATISTICAL DATA
Comparative Statement of Operations and Change in Fund Balance - Current
Fund
123
Comparative Statement of Operations and Change in Fund Balance - Water
and Sewer Utility Operating Fund
124
Exhibit
Number
STATISTICAL SECTION
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
Page
H-1
Current Fund Expenditures by Function
125
H-2
Current Fund Revenues by Function
126
H-3
Water-Sewer Utility Operating Fund Expenditures by Function
127
H-4
Property Tax Rates Per $100 of Assessed Valuation
128
H-5
Municipal Property Tax Levies and Collections
129
H-6
Delinquent Taxes and Tax Title Liens
130
H-7
Assessed and Estimated Actual Value of Taxable Property
131
H-8
Schedule of Ten Largest Taxpayers
132
H-9
Computation of Legal Debt Margin
133
H-10
Ratio of Bonded Debt, Bond Anticipation Notes and Loans to
Equalized Value and Net Debt Per Capita
134
H-11 Calculation of "Self-Liquidating Purpose" Per N.J.S. 40A:2-45
Water-Sewer Utility Operating Fund
135
H-12 Demographic Statistics
136
H-13 Miscellaneous Statistics
137
AUDITOR'S COMMENTS AND RECOMMENDATIONS
General Comments:
Contracts and Agreements Required to be Advertised for N.J.S. 40A:11-4
Collection of Interest on Delinquent Taxes and Utility Charges
138
139
Delinquent Taxes and Tax Title Liens
140
Water-Sewer Utility Receivables
140
Cash Balances
140
Revenues
140
Expenditures
141
Payroll
141
Miscellaneous Comments
141
Surety Bond Coverage
141
Municipal Court
141
Technical Directives - State of New Jersey
141
Capital Funds
142
Interfund Receivable/Payable
142
Other Matters
142
Appreciation
142
Following-up on Prior Year Recommendation
142
Recommendations
143
INTRODUCTORY SECTION
U.B.
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
September 23, 2024
TO:
The Honorable Mayor and Council Members
RE: Annual Comprehensive Financial Report for the
Year Ended December 31, 2022
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 Annual Comprehensive Financial Report (ACFR) is presented in four (4) sections:
Introductory, Financial, Statistical and Auditor's Comments and Recommendations. The
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, LLP, 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 2022 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 2022, our Current Fund, which encompasses the general government functions of the
Borough, had revenues exclusive of fund balance utilized of $1,330,699.08 incurred
expenditures of $1,229,797.72, resulting in a decrease of $33,906.86 in fund balance at year-
end. The Current Fund total revenues increased $35,817.57, or 2.18% compared to 2021
caused primarily by an increase in tax collections.
Local Sources:
Fund Balance Utilized
Current Tax Revenue
Delinquent Tax Revenue
Nonbudget Revenues
Other Credits to Income
Total Revenues from Local Sources
State Aid
Grants
Total Current Fund Revenues
2022
$
2021
Increase/(Decrease)
Amount
Percent
356,000.00 $ 373,135.73 $ (17,135.73) (4.59) %
940,892.64
22,833.34
33,718.66
229,948.09
898,595.35
84,534.06
45,336.08
152,089.26
42,297.29
4.71
(61,700.72) (72.99)
(11,617.42) (25.63)
77,858.83
51.19
$ 1,583,392.73 $ 1,553,690.48 $ 29,702.25
1.91 %
86,118.56
7,187.79
81,849.00
5,342.03
4,269.56
5.22
1,845.76
34.55
$ 1,676,699.08 $ 1,640,881.51 $ 35,817.57
2.18 %
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 to Income - These are items that are not budgeted
as revenue items, however, are included in the overall revenue.
- 2 -
The increase in expenditures in 2022 compared to 2021 was $6,682.96, or 0.55%. Below is a
comparison of the Current Fund expenditures:
Within "CAPS":
General Government
Land Use
Insurance
Public Works
Health and Human Services
Parks and Recreation
Utilities
Other Common Functions
Public Safety
Sanitation
Deferred Charges and Statutory
Expenditures
Total Expenditures within "CAPS"
Increase/(Decrease)
2022
2021
Amount
Percent
$
383,254.00 $
371,349.00 $
11,905.00
3.21 %
25,900.00
27,300.00
(1,400.00)
(5.13)
44,000.00
43,100.00
900.00
2.09
161,023.00
158,773.00
2,250.00
1.42
16,260.00
13,200.00
3,060.00
23.18
13,700.00
12,900.00
800.00
6.20
29,100.00
28,500.00
600.00
2.11
4,000.00
2,500.00
1,500.00
60.00
16,600.00
16,600.00
0.00
0.00
37,000.00
37,000.00
0.00
0.00
42,541.93
63,773.73
(21,231.80)
(33.29)
$
773,378.93 $
774,995.73 $
(1,616.80)
(0.21)%
Outside "CAPS":
Public Safety
$
106,433.00 $
88,070.00
18,363.00
20.85
Sanitation
72,348.00
70,957.00
1,391.00
1.96
Health & Human Services
9,000.00
9,000.00
100.00
Grants
7,187.79
5,342.03
1,845.76
34.55
Capital Improvements
40,000.00
65,000.00
(25,000.00)
(38.46)
Debt Service
13,450.00
13,750.00
(300.00)
(2.18)
Total Expenditures outside 'CAPS"
$
248,418.79 $
243,119.03 $
5,299.76
2.18 %
Reserve for Uncollected Taxes
$
208,000.00 $
205,000.00 $
3,000.00
1.46
$ 1,229,797.72 $ 1,223,114.76 $
6,682.96
0.55 %
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
2022 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 $1,038,324.55, expenditures of $907,527.11, resulting in an increase in fund balance of
$126,797.44. The increase in operating expenses in 2022 compared to 2021 was $34,782.37,
or 3.99%. The following schedule summarizes revenues and expenses for 2022 and 2021.
2022
2021
Increase/(Decrease)
Amount
Percent
Revenues
Fund Balance Utilized
$
62,086.00 $
66,086.00 $
(4,000.00)
Rents
743,701.25
759,897.44
(16,196.19)
(6.05) %
(2.13)
Cell Tower Fees
136,631.52
132,149.22
4,482.30
3.39
Interest on Delinquent Rents
Nonbudget Revenue
8,929.16
2,432.13
1,078.15
7,851.01
728.19
1,608.52
823.61
51.20
Other Credits to Income:
Unexpended Balance of
Appropriation Reserves
146,630.49
56,489.98
90,140.51
159.57
$ 1,100,410.55 $ 1,017,309.31 $
83,101.24
8.17%
Expenditures
Operating
$
596,225.00 $ 536,225.00 $
60,000.00
11.19 %
Capital Improvements
25,000.00
25,000.00
0.00
0.00
Debt Service
286,302.11
311,519.74
(25,217.63)
(8.10)
$
907,527.11 $ 872,744.74 $
34,782.37
3.99 %
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 808 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 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, 2022, 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 2022, 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
ACCOUNTING AND BUDGET INFORMATION
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 $6,539,391.67, of which
$5,101,841.67 is attributed to the Water-Sewer Utility and $1,473,550.00 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 ACFR.
Respectfully submitted,
George Lang
George Lang
Chief Financial Officer
-7-
BOROUGH OF ROOSEVELT
ROSTER OF OFFICIALS
DECEMBER 31, 2022
Governing Body
Peggy Malkin, Mayor
Michael Hamilton, Council President
Robert Atwood, Council Member
Louis Esakoff, Council Member
Constance Herrstrom, Council Member
Steven E. Macher, Council Member
Joseph Trammell, Council Member
Other Officials
Kathleen Hart, Borough Clerk, Registrar of Vital Statistics'
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
Sonia K. Fernandez, Municipal Court Administrator
Michele Donato, Planning Board Attorney
-8-
BOROUGH OF ROOSEVELT
CONSULTANTS AND ADVISORS
DECEMBER 31, 2022
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 & Cannon, 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, LLP
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
Opinions
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, 2022, and the related statement of operations and change in fund balance
basis for the year then ended, the related statement of revenues
of expenditures - regulatory basis, and the related notes to the financial statements for the year
then ended.
regulatory
regulatory basis, statement
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,
2022, and change in financial position thereof for the year then ended.
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 New Jersey which is a basis of accounting other
than accounting principles generally accepted in the United States of America, to meet the
requirements of the State of New Jersey.
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
www.samuelklein-cpa-rma.com
10-
INDEPENDENT AUDITORS' REPORT (CONTINUED)
The effects on 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 New Jersey which is a basis of accounting other than accounting
principles generally accepted in the United States of America, to meet the requirements of the
State of New Jersey.
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, 2022,
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, 2022 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.
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 Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
regulatory basis as a whole are free from material misstatements, 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 generally accepted auditing standards, Government Auditing
Standards and auditing standards prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey 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.
-11-
INDEPENDENT AUDITORS' REPORT (CONTINUED)
In performing an audit in accordance with generally accepted auditing standards and
Government Auditing Standards, we:
Π
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements
regulatory basis, 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 of Roosevelt, State of New
Jersey'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 - regulatory basis.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Borough of Roosevelt, State of New
Jersey'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

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"...es and Tax Title Liens 140 Water-Sewer Utility Receivables 140 Cash Balances 140 Revenues 140 Expenditures 141 Payroll 141 Miscellaneous Comments 141 Surety Bond Coverage 141 Municipal Court 141 Technical Directives - State of New Jersey 141 Capital Funds 142 Interfund Receivable/Payable 142 Other Matters 142..."

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