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Executive Summary
The Township of Woolwich's audit report for the year ending December 31, 2017, includes independent auditor's reports on the financial statements and internal control over financial reporting, as well as the financial statements themselves, prepared on a regulatory basis. The report expresses an adverse opinion on the financial statements when evaluated against accounting principles generally accepted in the United States of America, but an unmodified opinion on the regulatory basis of accounting prescribed by the New Jersey Division of Local Government Services. The audit identifies certain deficiencies in internal control and instances of noncompliance with laws, regulations, contracts, and grant agreements.
Key findings include issues related to posting entries in the General Capital Fund, the absence of a written Standard Operating Procedures manual, improper use of the Municipal Functions Donation Trust Fund, and the need for active collection of outstanding grant receivables. The audit report was issued on June 21, 2018, by Holman Frenia Allison, P.C.
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Document Text
--- Document: Audit - 2017 Document ---
TOWNSHIP OF WOOLWICH
AUDIT REPORT FOR THE YEAR
ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
COUNTY OF GLOUCESTER
CONTENTS
PART 1
PAGE
Independent Auditor’s Report
1
Independent Auditor’s Report on Internal Control Over Financial Reporting and
On Compliance and Other Matters Based on an audit of Financial Statements
Performed in Accordance with Governmental Auditing Standards
5
Financial Statements – Regulatory Basis: EXHIBITS
Current Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
A
9
Statements of Operations and Changes in
Fund Balance – Regulatory Basis
A-1
11
Statement of Revenues – Regulatory Basis
A-2
12
Statement of Expenditures – Regulatory Basis
A-3
13
Trust Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
B
17
Statement of Revenues – Regulatory Basis – Municipal
Open Space Fund
B-1
18
Statement of Expenditures – Regulatory Basis – Municipal
Open Space Fund
B-2
19
General Capital Fund:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
C
20
General Fixed Assets:
Statements of Assets, Liabilities, Reserves &
Fund Balance – Regulatory Basis
D
21
Notes to Financial Statements
25
Supplemental Exhibits:
Current Fund
Schedule of Cash and Investments - Treasurer
A-4
59
Schedule of Cash - Collector
A-5
60
Schedule of Taxes Receivable
A-6
61
Schedule of Tax Title Liens
A-7
62
Schedule of Revenue Accounts Receivable
A-8
63
Schedule of 2016 Appropriation Reserves
A-9
64
Schedule of Local District Tax
A-10
65
Schedule of Regional High School Tax Payable
A-11
65
Schedule of County Taxes Payable
A-12
66
(continued)
EXHIBITS PAGE
Current Fund (continued):
Schedule of State and Federal Grants Receivable
A-13
67
Schedule of Reserves for State and Federal Grants – Appropriated A-14
68
Schedule of Reserves for State and Federal Grants –
Unappropriated
A-15
69
Trust Fund:
Schedule of Cash – Treasurer
B-3
73
Schedule of Cash - Collector
B-4
74
Schedule of Reserve for Animal Control Expenditures
B-5
75
Schedule of Redemption of Tax Title Liens
B-6
76
Schedule of Premiums Received at Tax Sale
B-7
77
Schedule of Reserve for Municipal Open Space
B-8
78
Schedule of Miscellaneous Trust Reserves
B-9
79
General Capital Fund:
Schedule of Fund Balance
C-1
83
Schedule of Cash - Treasurer
C-2
83
Analysis of General Capital Cash
C-3
84
Schedule of Deferred Charges to Future Taxation –
Funded
C-4
85
Schedule of Deferred Charges to Future Taxation –
Unfunded
C-5
86
Schedule of Capital Improvement Fund
C-6
87
Schedule of Improvement Authorizations
C-7
88
Schedule of General Serial Bonds
C-8
89
Schedule of Green Acres Trust Loans
C-9
90
Schedule of Obligations Under Capital Lease
C-10
91
Schedule of Bonds and Notes Authorized but Not Issued
C-11
92
Schedule of Grants Receivable
C-12
93
PART II
Schedule of Findings and Questioned Costs – Government Auditing Standards:
Schedule of Findings and Questioned Costs
97
Summary Schedule of Prior Year Audit Findings and Questioned Costs
as Prepared by Management
100
PART III
Letter of Comments and Recommendations – Regulatory Basis:
Officials in Office
103
General Comments
105
Other Comments (Findings)
106
Recommendations
107
Acknowledgment
108
(concluded)
*****************
************
TOWNSHIP OF WOOLWICH
COUNTY OF GLOUCESTER
PART I
INDEPENDENT AUDITOR'S REPORTS
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
This page intentionally left blank
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members
of the Township Committee
Township of Woolwich
County of Gloucester
Woolwich, New Jersey
Report on the Financial Statements
We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory
basis of the various funds and account group of the Township of Woolwich as of December 31, 2017 and
2016, and the related statements of operations and changes in fund balance - regulatory basis for the years
then ended, the related statements of revenues - regulatory basis, and statements of expenditures -
regulatory basis for the year ended December 31, 2017 and the related notes to the financial statements,
which collectively comprise the Township’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles and practices prescribed by the Division of Local Government
Services, Department of Community Affairs, State 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 Responsibility
Our responsibility is to express opinions on these financial statements 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 in compliance with audit requirements prescribed by the
Division of Local Government Services, 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 Township’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. Accordingly, we express no such opinion. An audit also includes evaluating
1
Holman | Frenia
Allison, P.C.
HF
Certified Public Accountants & Consultants
680 Hooper Avenue, Bldg B, Toms River, NJ 08753 • Tel: 732.797.1333
618 Stokes Road, Medford, NJ 08055 • Tel: 609.953.0612
912 Highway 33, Suite 2, Freehold, NJ 07728 • Tel: 732.409.0800
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
www.hfacpas.com
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.
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of
America
As described in Note 1, the financial statements are prepared by the Township of Woolwich on the basis
of the financial reporting provisions 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.
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 Accounting Principles Generally Accepted in the United States of America
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on
U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do
not present fairly, in accordance with accounting principles generally accepted in the United States of
America, the financial position of the Township, as of December 31, 2017 and 2016, or the results of its
operations and changes in fund balance for the years then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets,
liabilities, reserves and fund balance - regulatory basis of the various funds of the Township, as of
December 31, 2017 and 2016, and the results of its operations and changes in fund balance - regulatory
basis of such funds for the years then ended, and the statements of revenues - regulatory basis, statements
of expenditures - regulatory basis of the various funds, and general fixed assets group of accounts –
regulatory basis, for the year ended December 31, 2017 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 Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Township’s basic financial statements. The supplemental schedules 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 are not a required part
of the basic financial statements.
The supplemental schedules presented for the various funds are the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
2
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 and 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 21, 2018
on our consideration of the Township'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 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 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 Township's internal control over
financial reporting and compliance.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P.C.
Michael Holt
Certified Public Accountant
Registered Municipal Accountant
RMA No. 473
Medford, New Jersey
June 21, 2018
3
This page intentionally left blank
4
INDEPENDENT AUDITOR’S 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
Honorable Mayor and Members
of the Township Committee
Township of Woolwich
County of Gloucester
Woolwich, New Jersey
We have audited, in accordance with the auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey, the financial
statements - regulatory basis of the Township of Woolwich, as of and for the year ended December 31,
2017, and the related notes to the financial statements, which collectively comprise the Township's basic
financial statements, and have issued our report thereon dated June 21, 2018. Our report indicated that the
Township’s financial statements were not prepared in accordance with accounting principles generally
accepted in the United States of America but rather prepared in accordance with the regulatory basis of
accounting prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Township's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Township’s internal control. Accordingly,
we do not express an opinion on the effectiveness of the Township’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 entity’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 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. We did identify certain deficiencies in internal control, described in the
5
Holman | Frenia
Allison, P.C.
HF
Certified Public Accountants & Consultants
680 Hooper Avenue, Bldg B, Toms River, NJ 08753 • Tel: 732.797.1333
618 Stokes Road, Medford, NJ 08055 • Tel: 609.953.0612
912 Highway 33, Suite 2, Freehold, NJ 07728 • Tel: 732.409.0800
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
www.hfacpas.com
accompanying schedule of financial statement findings that we consider to be material weaknesses as
Finding No. 2017-001.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Township's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to
be reported under Government Auditing Standards and audit requirements as prescribed by the Division
of Local Government Services, Department of Community Affairs, State of New Jersey and which are
described in the accompanying schedule of financial statement findings as Finding No’s. 2017-001, 2017-
002, 2017-003 and 2017-004.
Township of Woolwich’s Response to Findings
The Township of Woolwich’s response to the findings identified in our audit is described in the
accompanying schedule of financial statement findings. The Township’s response was not subjected to
the auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Township's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards and audit requirements as prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey in considering the
Township’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Respectfully Submitted,
HOLMAN FRENIA ALLISON, P.C.
Michael Holt
Certified Public Accountant
Registered Municipal Accountant
RMA No. 473
Medford, New Jersey
June 21, 2018
6
BASIC FINANCIAL STATEMENTS
7
This page intentionally left blank
8
EXHIBIT A
(Page 1 of 2)
CURRENT FUND
ASSETS
REFERENCE
2017
2016
Operating Fund:
Cash:
Treasurer
A-4
7,020,971.99
$
5,828,084.85
$
Investment - CRIM
A-4
1,048,068.76
1,029,915.73
Change Fund
A
83.67
83.67
Total Cash
8,069,124.42
6,858,084.25
Receivables & Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-6
432,799.11
591,706.06
Tax Title Liens Receivable
A-7
198,357.38
134,729.98
Revenue Accounts Receivable
A-8
13,775.84
10,769.77
Due from Capital Fund
C
-
1,653.50
Due from Municipal Open Space
B
185,188.00
-
Due from Animal Control Trust
B
94.24
94.24
Due from Trust Fund
B
93,795.90
93,795.90
Total Receivables
924,010.47
832,749.45
Deferred Charges:
Emergency Authorization
A
125,000.00
-
Total Deferred Charges
125,000.00
-
Total Operating Fund Assets
9,118,134.89
7,690,833.70
Federal & State Grant Fund:
Grants Receivable
A-13
311,496.70
542,387.68
Due from Capital Fund
C
127,500.00
-
Due from Current Fund
A
63,044.44
44,421.43
Total Federal & State Grant Fund Assets
502,041.14
586,809.11
Total Assets
9,620,176.03
$
8,277,642.81
$
TOWNSHIP OF WOOLWICH
DECEMBER 31, 2017 AND 2016
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
9
EXHIBIT A
(Page 2 of 2)
LIABILITIES RESERVES & FUND BALANCE
REFERENCE
2017
2016
Current Fund:
Appropriation Reserves
A-3/A-9
539,884.90
$
577,706.59
$
Reserve for Encumbrances
A-3
107,776.01
159,653.95
Prepaid Taxes
A-5
1,678,701.16
273,006.04
Accounts Payable
A-9
3,660.26
6,151.13
Tax Overpayments
A
62,226.29
35,058.73
Due County for Added & Omitted Taxes
A-12
115,130.12
66,468.51
Due Municipal Open Space Tax Fund
B
11,596.89
4,192.88
Local School Taxes Payable
A-10
2,604,985.49
2,580,506.47
Regional School Taxes Payable
A-11
0.10
0.12
Due to Federal and State Grant Fund
A
63,044.44
44,421.43
Due to General Capital Fund
C
113,587.90
115,968.08
Reserve for Master Plan
A
66,418.82
66,418.82
Due to State - Senior Citizen and Veterans Deductions
A
11,454.30
10,386.12
Total Operating Liabilities
5,378,466.68
3,939,938.87
Reserve for Receivables
A
924,010.47
832,749.45
Fund Balance
A-1
2,815,657.74
2,918,145.38
Total Operating Fund
9,118,134.89
7,690,833.70
Federal & State Grant Fund:
Reserve for State Grants:
Appropriated Reserves
A-14
465,272.00
514,579.21
Unappropriated Reserves
A-15
16,010.69
30,255.69
Encumbrances Payable
A-14
20,758.45
41,974.21
Total Federal & State Grant Fund
502,041.14
586,809.11
Total Liabilities Reserve & Fund Balance
9,620,176.03
$
8,277,642.81
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF WOOLWICH
CURRENT FUND
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2017 AND 2016
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
10
EXHIBIT A-1
2017
2016
Revenue & Other Income Realized:
Fund Balance Utilized
2,190,000.00
$
1,975,000.00
$
Miscellaneous Revenues Anticipated
1,683,509.69
1,734,994.82
Receipts From Delinquent Taxes
431,728.13
522,679.04
Receipts From Current Taxes
41,667,531.79
40,485,057.57
Nonbudget Revenues
462,872.16
470,944.10
Other Credits to Income:
Other
232.58
250.16
Interfunds Liquidated
-
39,779.86
Unexpended Balance of Appropriation Reserves
370,418.61
266,787.20
Total Revenue & Other Income
46,806,292.96
45,495,492.75
Expenditures:
Budget & Emergency Appropriations:
Appropriations Within "CAPS":
Operations:
Salaries and Wages
2,306,386.84
2,326,077.66
Other Expenses
3,386,297.00
3,285,667.30
Deferred Charges & Statutory Expenditures
726,739.00
716,269.00
Appropriations Excluded From "CAPS":
Operations:
Salaries and Wages
677,175.50
626,529.90
Other Expenses
80,607.43
286,640.67
Capital Improvement Fund
-
100,000.00
Municipal Debt Service
1,571,242.35
1,637,025.76
Deferred Charges
-
15,850.00
County Taxes
8,996,686.22
8,670,896.84
Local District School Tax
16,030,979.00
15,482,021.00
Regional High School Tax
10,333,009.00
9,917,919.00
Municipal Open Space
566,700.00
561,457.62
Municipal Open Space - Added Taxes
7,404.01
4,192.88
Interfund Loans Advanced
160,554.25
-
Total Expenditures
44,843,780.60
43,630,547.63
Excess/(Deficit) in Revenue
1,962,512.36
1,864,945.12
Adjustments to Income before Fund Balance
Expenditures Included Above Which Are by Statute Deferred Charges
to Budget of Succeeding Years
125,000.00
-
Statutory Excess to Fund Balance
2,087,512.36
1,864,945.12
Fund Balance - January 1
2,918,145.38
3,028,200.26
Total
5,005,657.74
4,893,145.38
Decreased by: Utilized as Anticipated Revenue
2,190,000.00
1,975,000.00
Fund Balance December 31, 2017
2,815,657.74
$
2,918,145.38
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF WOOLWICH
CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
STATEMENTS OF OPERATIONS AND CHANGES
IN FUND BALANCE - REGULATORY BASIS
11
EXHIBIT A-2
ANTICIPATED
ADDED BY
EXCESS OR
BUDGET
N.J.S.40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
2,190,000.00
$
-
$
2,190,000.00
$
-
$
Miscellaneous Revenues:
Municipal Court
120,000.00
-
172,226.36
52,226.36
Interest & Cost on Taxes
100,000.00
-
108,373.23
8,373.23
Energy Receipts Tax
414,809.00
-
414,809.00
-
Garden State Trust
5,939.00
-
5,939.00
-
Shared Service Agreements - Swedesboro:
Recreation
10,000.00
-
10,250.00
250.00
Police Coverage and Protection
639,061.00
-
639,061.50
0.50
Kingsway Regional School District
38,115.00
-
77,055.00
38,940.00
Debt Service Contribution from Open Space
185,188.00
-
185,188.00
-
Additional Revenues Offset With Appropriations:
Recycling Tonnage Grant
-
12,853.20
12,853.20
-
Clean Communities Program
26,470.09
22,488.00
48,958.09
-
Alcohol Education and Rehabilitation Fund
1,601.43
418.21
2,019.64
-
Body Armor Replacement Grant
2,184.17
-
2,184.17
-
Click It or Ticket Grant
-
2,200.00
2,200.00
-
Distracted Driving Grant
-
2,392.50
2,392.50
-
Total Miscellaneous
1,543,367.69
40,351.91
1,683,509.69
99,790.09
Receipts from Delinquent Taxes
538,614.00
-
431,728.13
(106,885.87)
Subtotal General Revenues
4,271,981.69
40,351.91
4,305,237.82
(7,095.78)
Amount to be Raised by Taxes for Support to Municipal
Budget - Local Tax for Municipal Purposes
5,756,643.00
-
6,978,281.56
1,221,638.56
Budget Totals
10,028,624.69
40,351.91
11,283,519.38
1,214,542.78
Nonbudget Revenues
-
-
462,872.16
462,872.16
Total
10,028,624.69
$
40,351.91
$
11,746,391.54
$
1,677,414.94
$
Allocation of Current Tax Collections:
Revenue From Collections
41,667,531.79
$
Allocated to - School, County & Special District Taxes
35,934,778.23
Balance for Support of Municipal Budget Revenues
5,732,753.56
Add: Appropriation - "Reserve for Uncollected Taxes"
1,245,528.00
Amount for Support of Municipal Budget Appropriations
6,978,281.56
$
Receipts From Delinquent Taxes:
Delinquent Tax Collections
412,498.85
$
Tax Title Lien Collections
19,229.28
Total Receipts From Delinquent Taxes
431,728.13
$
Analysis of Nonbudget Revenue:
Treasurer:
Licenses - Alcohol
6,350.00
$
Marriage Licenses
1,232.00
Junk Yard
7,747.83
Lien Demolition
4,549.44
Zoning Board Fees
41,340.00
Planning Board Fees
4,863.85
Other Fees
6,936.00
Construction Fee Reimbursement
174,643.77
Community Garden Plots
1,245.00
Poll Rentals
400.00
Municipal Building Rentals
14,437.50
Vacant Property Registration
58,900.00
DMV Inspection Fee
6,850.00
Interlocal - Aid Fire Company
13,545.00
Cancellation of Old Outstanding Checks
16,008.65
Payment in Lieu of Taxes
40,292.52
Cable TV Franchise Fees
35,571.35
2% Senior & Vet Admin Fee
1,066.36
Interest on Investments
15,426.15
Other
11,466.74
Total Analysis of Nonbudget Revenue
462,872.16
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
ANALYSIS OF REALIZED REVENUE
TOWNSHIP OF WOOLWICH
CURRENT FUND
STATEMENTS OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
12
EXHIBIT A-3
(Page 1 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
General Government:
General Administration:
Salaries and Wages
20,000.00
$
20,000.00
$
19,999.98
$
-
$
0.02
$
-
$
Other Expenses
5,500.00
6,000.00
5,089.59
117.29
793.12
-
Mayor and Committee:
Salaries and Wages
30,500.00
30,500.00
30,500.00
-
-
-
Other Expenses
3,000.00
3,000.00
2,818.64
-
181.36
-
Municipal Clerk:
Salaries and Wages
106,734.00
110,734.00
110,580.29
153.71
-
Other Expenses
16,611.00
16,111.00
14,591.18
24.38
1,495.44
-
Financial Administration (Treasury):
Salaries and Wages
122,000.00
128,500.00
128,045.91
-
454.09
-
Other Expenses
56,000.00
56,000.00
51,463.49
2,568.00
1,968.51
-
Audit Services:
Other Expenses
50,000.00
50,000.00
46,588.00
-
3,412.00
-
Revenue Administration (Tax Collection):
Salaries and Wages
55,000.00
55,000.00
54,999.93
-
0.07
-
Other Expenses
7,500.00
8,000.00
7,501.26
-
498.74
-
Legal Services and Costs:
Other Expenses
230,000.00
230,000.00
176,033.03
1,805.00
52,161.97
-
Litigation - Other Expenses
-
125,000.00
125,000.00
-
-
-
Engineering Services:
Other Expenses
40,000.00
50,000.00
40,779.80
-
9,220.20
-
Economic Development Agencies:
Other Expenses
1,000.00
1,000.00
508.97
105.48
385.55
-
Land Use Administration:
Planning Board:
Salaries and Wages
30,000.00
25,500.00
25,126.67
-
373.33
-
Other Expenses
50,000.00
59,000.00
53,125.41
210.00
5,664.59
-
Zoning Board of Adjustment:
Salaries and Wages
65,000.00
65,000.00
62,510.26
-
2,489.74
-
Other Expenses
500.00
500.00
-
-
500.00
-
Office of Community Development:
Salaries and Wages
75,429.00
76,179.00
75,990.94
-
188.06
-
Insurance:
General Liability
124,078.00
124,078.00
124,078.00
-
-
-
Workers' Compensation
194,997.00
191,997.00
186,662.00
-
5,335.00
-
Employee Group Health
665,000.00
665,000.00
611,069.47
-
33,930.53
20,000.00
Employee Health Insurance - Optional Cash Payment
95,000.00
95,000.00
39,761.92
40.00
55,198.08
-
EXPENDED
TOWNSHIP OF WOOLWICH
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
APPROPRIATIONS
13
EXHIBIT A-3
(Page 2 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Public Safety Functions:
Police Department:
Salaries and Wages
1,438,188.00
1,418,188.00
1,317,690.68
-
72,211.16
28,286.16
Other Expenses
99,937.00
99,937.00
61,954.76
19,122.14
18,860.10
-
Office of Emergency Management:
Salaries and Wages
5,000.00
5,000.00
5,000.00
-
-
-
Other Expenses
2,500.00
2,500.00
-
-
2,500.00
-
Aid to Volunteer Fire Company in
Adjoining Municipality
85,000.00
85,000.00
73,626.29
9,313.66
2,060.05
-
Municipal Prosecutor:
Salaries and Wages
18,500.00
18,600.00
18,561.61
-
38.39
-
Public Works Functions:
Streets & Roads Maintenance:
Other Expenses
44,700.00
44,700.00
17,789.67
18,906.35
8,003.98
-
Snow Removal:
Salaries and Wages
10,000.00
10,000.00
-
-
10,000.00
-
Other Expenses
35,000.00
35,000.00
1,832.70
11,562.25
21,605.05
-
Solid Waste Collection:
Other Expenses
479,297.00
474,297.00
458,374.17
-
15,922.83
-
Sanitation:
Other Expenses
13,000.00
13,000.00
210.00
-
12,790.00
-
Buildings & Grounds:
Salaries and Wages
240,715.00
240,715.00
240,226.93
-
488.07
-
Other Expenses
66,500.00
76,500.00
64,114.36
4,884.12
7,501.52
-
Vehicle Maintenance:
Other Expenses
45,000.00
45,000.00
22.27
35,269.86
9,707.87
-
Health & Human Services:
Public Health Services (Board of Health):
Salaries and Wages
4,590.00
4,590.00
4,590.00
-
-
-
Other Expenses
1,000.00
1,000.00
111.28
73.50
815.22
-
Environmental Committee:
Other Expenses
2,500.00
2,500.00
163.00
1,962.00
375.00
-
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
CURRENT FUND
APPROPRIATIONS
EXPENDED
14
EXHIBIT A-3
(Page 3 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Park & Recreation Functions:
Recreation Services & Programs:
Other Expenses
8,000.00
8,000.00
8,000.00
-
-
-
Maintenance of Parks:
Other Expenses
30,000.00
32,000.00
27,598.20
1,387.89
3,013.91
-
Celebration of Public Events:
Other Expenses
1,500.00
1,500.00
1,500.00
-
-
Utility Expenses & Bulk Purchases:
Electricity
125,000.00
136,000.00
121,062.12
-
14,937.88
-
Street Lighting
65,000.00
65,000.00
50,546.28
-
14,453.72
-
Telephone
30,000.00
30,000.00
27,736.46
-
2,263.54
-
Water - Fire Hydrant
108,000.00
108,000.00
82,008.78
-
25,991.22
-
Gasoline
65,000.00
63,500.00
63,263.35
236.65
-
Heating
7,000.00
7,000.00
4,498.22
-
2,501.78
-
Cable TV & Internet
4,500.00
4,500.00
4,069.17
-
430.83
-
Salary Adjustment
7,500.00
7,500.00
624.46
-
6,875.54
-
Landfill/Solid Waste Disposal Costs:
Other Expenses
378,857.00
370,007.00
282,539.34
-
87,467.66
-
Municipal Court:
Salaries and Wages
117,667.00
117,667.00
108,477.77
-
4,189.23
5,000.00
Other Expenses
20,670.00
20,670.00
14,678.61
375.31
5,616.08
-
Public Defender:
Salaries and Wages
6,000.00
6,000.00
5,375.00
-
625.00
-
Total Operations Within "CAPS"
5,609,970.00
5,745,970.00
5,059,070.22
107,727.23
525,886.39
53,286.16
Detail:
Salaries and Wages
2,352,823.00
2,339,673.00
2,208,300.43
-
98,086.41
33,286.16
Other Expenses
3,257,147.00
3,406,297.00
2,850,769.79
107,727.23
427,799.98
20,000.00
Deferred Charges & Statutory Expenditures -
Municipal Within "CAPS":
Statutory Expenditures:
Social Security System (O.A.S.I.)
232,560.00
221,560.00
186,646.98
-
9,913.02
25,000.00
Defined Contribution Retirement Program
1,500.00
1,500.00
498.46
-
1,001.54
-
Consolidated Police & Firemen's
Pension
375,033.00
375,033.00
375,033.00
-
-
-
Public Employees Retirement
System
153,646.00
153,646.00
153,646.00
-
-
-
Total Deferred Charges & Statutory
Expenditures Within "CAPS"
762,739.00
751,739.00
715,824.44
-
10,914.56
25,000.00
Total General Appropriations for Municipal
Purposes Within "CAPS"
6,372,709.00
6,497,709.00
5,774,894.66
107,727.23
536,800.95
78,286.16
EXPENDED
APPROPRIATIONS
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
CURRENT FUND
15
EXHIBIT A-3
(Page 4 of 4)
BUDGET AFTER
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCEL
Operations Excluded From "CAPS":
Public & Private Programs Offset by Revenues:
Recycling Tonnage Grant
-
12,853.20
12,853.20
-
-
-
Clean Communities Program
26,470.09
48,958.09
48,958.09
-
-
-
Alcohol Education and Rehabilitation Fund
1,601.43
2,019.64
2,019.64
-
-
-
Body Armor Replacement Grant
2,184.00
2,184.00
2,184.00
-
-
-
Distracted Driving Grant
-
2,392.50
2,392.50
-
-
-
Click It or Ticket Grant
-
2,200.00
2,200.00
-
-
-
Interlocal Municipal Service Agreements:
Borough of Swedesboro:
Recreation - Other Expenses
10,000.00
10,000.00
6,867.27
48.78
3,083.95
-
Police Coverage and Protection
Salaries & Wages
639,060.50
639,060.50
639,060.50
-
-
-
Kingsway Regional High School:
Police Coverage and Protection
Salaries & Wages
38,115.00
38,115.00
38,115.00
-
-
-
Total Operations Excluded from
"CAPS"
717,431.02
757,782.93
754,650.20
48.78
3,083.95
-
Detail:
Salaries and Wages
677,175.50
677,175.50
677,175.50
-
-
-
Other Expenses
40,255.52
80,607.43
77,474.70
48.78
3,083.95
-
Municipal Debt Service - Excluded From "CAPS":
Payment of Bond Principal
610,000.00
610,000.00
610,000.00
-
-
-
Interest on Bonds
287,186.67
287,186.67
287,186.67
-
-
-
Green Acres Trust Loan Program:
Principal & Interest
34,200.76
34,200.76
34,200.76
-
-
-
Capital Lease Obligcation Approved Prior to 7/1/2007
Principal
380,000.00
380,000.00
380,000.00
-
-
Interest
381,568.76
381,568.76
259,854.92
-
-
121,713.84
Total Municipal Debt Service Excluded
From "CAPS"
1,692,956.19
1,692,956.19
1,571,242.35
-
-
121,713.84
Total General Appropriations Excluded
From "CAPS"
2,410,387.21
2,450,739.12
2,325,892.55
48.78
3,083.95
121,713.84
Subtotal General Appropriations
8,783,096.21
8,948,448.12
8,100,787.21
107,776.01
539,884.90
200,000.00
Reserve For Uncollected Taxes
1,245,528.00
1,245,528.00
1,245,528.00
-
-
-
Total General Appropriations
10,028,624.21
$
10,193,976.12
$
9,346,315.21
$
107,776.01
$
539,884.90
$
200,000.00
$
Adopted Budget
10,028,624.21
$
Emergency Appropriation
125,000.00
Added by N.J.S.40A:4-87
40,351.91
Total
10,193,976.12
$
Federal & State Grants
70,607.43
$
Reserve for Uncollected Taxes
1,245,528.00
Refunds
(630,643.46)
Deferred Charges
125,000.00
Disbursed
8,535,823.24
Total
9,346,315.21
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
APPROPRIATIONS
EXPENDED
TOWNSHIP OF WOOLWICH
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
CURRENT FUND
16
EXHIBIT B
ASSETS
REFERENCE
2017
2016
Animal Control Fund:
Cash
B-3
7,893.07
$
7,559.10
$
Total Animal Control Fund
7,893.07
7,559.10
Municipal Open Space Trust Fund
Cash
B-3
667,059.03
747,944.18
Open Space Taxes Receivable
A
11,596.89
4,192.88
Total Municipal Open Space
678,655.92
752,137.06
Other Funds:
Cash - Treasurer
B-3
1,748,442.38
2,002,103.91
Cash - Collector
B-4
241,009.09
303,259.61
Investment - CRIM
B
800,000.00
800,000.00
Total Other Funds
2,789,451.47
3,105,363.52
Total Assets
3,476,000.46
$
3,865,059.68
$
LIABILITIES, RESERVES & FUND BALANCE
Animal Control Fund:
Due Current Fund
A
94.24
$
94.24
$
Reserve for Animal Control Expenditures
B-3
7,798.83
7,464.86
Total Animal Control Fund
7,893.07
7,559.10
Municipal Open Space Trust Fund:
Due to General Capital Fund
C
204,356.64
326,856.64
Due to Current Fund
A
185,188.00
-
Reserve for Open Space
B-8
289,111.28
425,280.42
Total Municipal Open Space Trust Fund
678,655.92
752,137.06
Other Funds:
Due to Current Fund
A
93,795.90
93,795.90
Deposits for Redemption of Tax Title Liens
B-6
9,886.71
10,138.82
Tax Sale Premiums
B-7
231,122.38
293,120.79
Due to State of NJ - DCA Training Fees
B
6,649.00
48,355.00
Reserves for:
Public Defender
B-9
2,751.26
3,043.88
Payroll Deductions Payable
B-9
20,602.98
1,936.79
Site Plan Review Escrow
B-9
737,678.90
679,550.92
Municipal Functions Developers Fees
B-9
152,219.93
125,129.07
Police Overtime
B-9
28,082.08
6,434.51
UCC Trust
B-9
688,416.41
933,047.18
P.O.A.A. - Parking Fines
B-9
524.61
498.07
Police Forfeited Funds
B-9
4,400.29
3,865.26
Open Space - Municipal Maintenance
B-9
6,490.09
18,267.95
Developers Tree Compensation
B-9
324,011.44
364,331.76
Snow Removal
B-9
19,738.20
31,936.44
Developers Recreation Fees
B-9
113,828.88
127,641.65
COAH Fees
B-9
322,506.78
314,766.35
Election
B-9
250.00
250.00
Woolwich Recreation Trust
B-9
24,060.37
41,273.96
Unemployment Trust
B-9
2,435.26
7,979.22
Total Other Funds
2,789,451.47
3,105,363.52
Total Liabilities, Reserves & Fund Balance
3,476,000.46
$
3,865,059.68
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF WOOLWICH
TRUST FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
DECEMBER 31, 2017 AND 2016
AND FUND BALANCE - REGULATORY BASIS
17
EXHIBIT B-1
ANTICIPATED
EXCESS OR
BUDGET
REALIZED
(DEFICIT)
Amount to be Raised by Taxation
566,700.00
$
574,104.01
$
7,404.01
$
For Future Use
435,138.00
122,500.00
(312,638.00)
Miscellaneous - Interest
-
841.91
841.91
Total
1,001,838.00
$
697,445.92
$
(304,392.08)
$
Amount to be Raised by Taxation:
Current Year Levy
566,700.00
$
Added/Omitted Levy
7,404.01
574,104.01
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
TOWNSHIP OF WOOLWICH
TRUST MUNICIPAL OPEN SPACE FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
ANALYSIS OF REALIZED REVENUE
18
EXHIBIT B-2
UNEXPENDED
BUDGET AFTER
BALANCE
OPERATIONS
BUDGET
MODIFICATION
PAID
ENCUMBERED
RESERVED
CANCELLED
Development of Lands for Recreation & Conservation:
Salaries and Wages
140,000.00
$
140,000.00
$
106,427.45
$
-
$
33,572.55
$
-
$
Other Expenses
300,000.00
300,000.00
274,360.95
-
25,639.05
-
Debt Service:
Payment of Bond Principal
153,827.00
153,827.00
153,827.00
-
-
-
Interest on Bonds
31,361.00
31,361.00
31,361.00
-
-
-
Reserve for Future Use
376,650.00
376,650.00
267,638.66
-
109,011.34
-
Total
1,001,838.00
$
1,001,838.00
$
833,615.06
$
-
$
168,222.94
$
-
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
EXPENDED
TOWNSHIP OF WOOLWICH
TRUST MUNICIPAL OPEN SPACE FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
APPROPRIATIONS
19
EXHIBIT C
REFERENCE
2017
2016
Cash & Cash Equivalents
C-2
1,206,770.39
$
1,405,448.25
$
Investment - CRIM
C-3
90,000.00
90,000.00
State Aid Receivable
C-12
400,008.35
207,008.35
Due from Gloucester County Improvement Authority
C
-
601,577.68
Due From Current Fund
A
113,587.90
115,968.08
Deferred Charges to Future Taxation:
Funded
C-4
16,153,889.01
10,257,777.93
Unfunded
C-5
15,400,000.00
-
Amount to be Provided for Retirement of Obligations
Under Capital Leases
C-10
-
8,730,000.00
Due from Municipal Open Space Trust
B
204,356.64
326,856.64
Total Assets
33,568,612.29
$
21,734,636.93
$
General Serial Bond
C-8
15,910,000.00
$
9,985,000.00
$
Green Acres Loan Payable
C-9
243,889.01
272,777.93
Due to Current Fund
A
-
1,653.50
Due to Grant Fund
A
127,500.00
-
Capital Improvement Fund
C-6
179,483.35
179,483.35
Obligations Under Capital Leases
C-10
-
8,730,000.00
Improvement Authorizations:
Funded
C-7
528,864.89
1,292,773.96
Unfunded
C-7
14,405,800.00
-
Reserve for Encumbrances
C-7
1,419,599.21
919,255.61
Reserve for Developers Deposits
C
173,465.05
173,465.05
Reserve To Pay Debt Service - Bonds
C
161,838.65
161,838.65
Fund Balance
C-1
418,172.13
18,388.88
Total Liabilities, Reserves & Fund Balance
33,568,612.29
$
21,734,636.93
$
There were bonds and notes authorized but not issued on December 31, 2017 of $15,400,000 and
on December 31, 2016 of $0.
The accompanying Notes to the Financial Statement are an integral part of this Statement.
LIABILITIES, RESERVES & FUND BALANCE
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
ASSETS
AND FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2017 AND 2016
STATEMENTS OF ASSETS, LIABILITIES, RESERVES
20
EXHIBIT D
2017
2016
Land and Buildings
11,609,300.00
$
11,609,300.00
$
Other Improvements
84,900.00
84,900.00
Machinery and Equipment
3,185,152.00
3,252,306.00
Total
14,879,352.00
$
14,946,506.00
$
Investment in Fixed Assets
14,879,352.00
$
14,946,506.00
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
FUND BALANCE
TOWNSHIP OF WOOLWICH
DECEMBER 31, 2017 AND 2016
FUND BALANCE - REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP
STATEMENTS OF FIXED ASSETS AND
ASSETS
21
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22
TOWNSHIP OF WOOLWICH
COUNTY OF GLOUCESTER
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
************
23
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24
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies
Description of Financial Reporting Entity
The Township of Woolwich, County of Gloucester, New Jersey (hereafter referred to as the “Township")
is comprised of five elected members who serve three-year terms. The Mayor and Deputy Mayor are
elected by the members of the committee and serve for a one-year term in these positions. The financial
statements of the Township include every board, body, officer or commission maintained wholly or in
part by funds appropriated by the Township, as required by the provision of N.J.S. 40A:5-5.
Component Units - GASB Statement 14, as amended by GASB Statements 39, 61 and 80, establishes
criteria to be used in determining the component units, which should be included in the financial
statements of a primary government. The financial statements of the Township are not presented in
accordance with GAAP (as discussed below). Therefore, the Township had no component units as
defined by GASB Statement No. 14, as amended by GASB Statements 39, 61 and 80.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the
Township contain all funds and account groups in accordance with the “Requirements of Audit” as
promulgated by the State of New Jersey, Department of Community Affairs, Division of Local
Government Services. The principles and practices established by the Requirements of Audit 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. Generally, the
financial statements are presented using the flow of current financial resources measurement focus and
modified accrual basis of accounting with minor exceptions as mandated by these “Requirements”. In
addition, the prescribed accounting principles previously referred to differ in certain respects from
accounting principles generally accepted in the United State of America applicable to local government
units. The more significant differences are explained further in this note.
In accordance with the “Requirements”, the Township accounts for its financial transactions through the
use of separate funds, which are described as follows:
Current Fund – This fund accounts for revenues and expenditures for governmental operations
of a general nature, including federal and state grant funds.
Trust Funds – These funds account for receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created.
General Capital Fund – This fund accounts for receipt and disbursement of funds for the
acquisition of general capital facilities, other than those acquired in the Current Fund.
General Fixed Asset Account Group – The Fixed Asset Account Group of accounts is utilized
to account for property, land, buildings, and equipment that have been acquired by other funds of
the Township.
25
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
Budgets and Budgetary Accounting - The Township must adopt an annual budget for its Current Fund
in accordance with N.J.S.A.40A:4 et seq. N.J.S.A.40A:4-5 requires the governing body to introduce and
approve the annual municipal budget no later than February 10th of each year. At introduction, the
governing body must fix the time and place for a public hearing on the budget and must advertise the time
and place at least ten days prior to the hearing in a newspaper published and circulating in the
municipality. The public hearing must not be held less than twenty-eight days after the date the budget
was introduced. After the hearing has been held, the governing body may, by majority vote, adopt the
budget or may amend the budget in accordance with N.J.S.A.40A:4-9. Amendments to adopted budgets,
if any are detailed in the statements of revenues and expenditures.
An extension of the statutory dates for introduction, approval and adoption of the municipal budget may
be granted by the Director of Local Government Services, with the permission of the Local Finance
Board. Budgets are adopted on the same basis of accounting utilized for the preparation of the
Township’s financial statements. Once a budget is approved it may be amended after November 1, by a
resolution adopted by the governing body.
Cash, Cash Equivalents and Investments - Cash and Cash equivalents include petty cash, change funds
and cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of
the date of maturity. Under GAAP, investments are reported at fair value but under regulatory basis of
accounting, investments are stated at cost. Therefore unrealized gains or losses on investments have not
been recorded.
New Jersey municipal units are required by N.J.S.A.40A:5-14 to deposit public funds in a bank or trust
company having its place of business in the State of New Jersey and organized under the laws of the
United States or of the State of New Jersey or in the New Jersey Cash Management Fund. N.J.S.A.40A:5-
15.1 provides a list of investments, which may be purchased by New Jersey municipal units. In addition,
other State statutes permit investments in obligations issued by local utilities and other state agencies.
N.J.S.A.17:9-41 et seq. establishes the requirements for the security of deposits of governmental units.
The statute requires that no governmental unit shall deposit public funds in a public depository unless
such funds are secured in accordance with the Governmental Unit Deposit Protection Act, which was
enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking
institution in New Jersey. Public depositories include State or federally chartered banks savings banks or
associations located in or having a branch office in the State of New Jersey, the deposits of which are
federally insured. All public depositories must pledge collateral, having a market value at least equal to
five percent of the average daily balance of collected public funds, to secure the deposits of Governmental
Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public
depositories, is available to pay the amount of their deposits to the Governmental Units.
The cash management plan adopted by the Township requires it to deposit funds in public depositories
protected from loss under the provisions of the Act.
Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded
by all funds affected by such transactions in the period in which the transaction is executed. 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.
26
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
Inventories and Supplies - The cost of inventories of supplies for all funds are recorded as expenditures
at the time individual items are purchased. The costs of inventories are not included on the various
statements of assets, liabilities, reserves and fund balance.
General Fixed Assets – Accounting for governmental fixed assets, as required by N.J.A.C.5:30-5.6,
differs in certain respects from accounting principles generally accepted in the United States of America.
In accordance with the regulations, all local units, including municipalities, must maintain a general fixed
assets reporting system that establishes and maintains a physical inventory of nonexpendable, tangible
property as defined and limited by the U.S. Office of Management and Budget Circular A-87 (Attachment
B, Section 19), except that the useful life of such property is at least five years. The Township has
adopted a capitalization threshold of $5,000.00, the maximum amount allowed by the Circular. Generally,
assets are valued at historical cost; however, assets acquired prior to December 31, 1985 are valued at
actual historical cost or estimated historical cost. In some instances, assets are valued at the assessed
valuation of the property at the time of acquisition, which approximates fair value. No depreciation of
general fixed assets is recorded. Donated general fixed assets are recorded at their acquisition value as of
the date of the transaction. Interest costs relative to the acquisition of general fixed assets are recorded as
expenditures when paid. Public domain ("infrastructure") general fixed assets consisting of certain
improvements such as roads, bridges, curbs and gutters, streets and sidewalks and drainage systems are
not capitalized. Expenditures for construction in progress are recorded in the capital funds until such time
as the construction is completed and put into operation. The Township is required to maintain a
subsidiary ledger detailing fixed assets records to control additions, retirements, and transfers of fixed
assets. In addition, a statement of general fixed assets, reflecting the activity for the year, must be
included in the Township's basic financial statements.
The regulations require that general fixed assets, whether constructed or acquired through purchase, grant
or gift be included in the aforementioned inventory. In addition, property management standards must be
maintained that includes accurate records indicating asset description, source, ownership, acquisition cost
and date, the percentage of federal participation (if any), and the location, use, and condition of the asset.
Periodically, physical inventories must be taken and reconciled with these records. All fixed assets must
be adequately controlled to safeguard against loss, damage, or theft.
Foreclosed property – Foreclosed Property or “Property Acquired for Taxes” is recorded in the Current
Fund at the assessed valuation when such property was acquired and is fully reserved. Ordinarily it is the
intention of the Township to resell foreclosed property in order to recover all or a portion of the
delinquent taxes or assessments and to return the property to a taxpaying basis. For this reason the value
of foreclosed property has not been included in the General Fixed Assets Account Group. If such
property is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group.
Deferred Charges – The recognition of certain expenditures is deferred to future periods. These
expenditures or deferred charges are generally overexpenditures of legally adopted budget appropriations
or emergency appropriations made in accordance with N.J.S.A.40A:4-46 et seq. Deferred charges are
subsequently raised as items of appropriation in budgets of succeeding years.
Fund Balance – Fund Balance included in the Current Fund represent the amount available for
anticipation as revenue in future year’s budgets, with certain restrictions.
27
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
Revenues – are recorded when received in cash except for certain amounts, which are due from other
governmental units. Revenue from Federal and State grants are realized when anticipated as such in the
Township’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement
of assets, liabilities, reserves and fund balance of the Township’s Current Fund; accordingly, such
amounts are not recorded as revenue until collected. Other amounts that are due the Township, which are
susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues
when received.
Property Tax Revenues – are collected in quarterly installments due February 1, May 1, August 1 and
November 1. The amount of tax levied includes not only the amount required in support of the
Township’s annual budget, but also the amounts required in support of the budgets of the County of
Gloucester, the Woolwich-Swedesboro Regional School District and the Kingsway Regional High
School. Unpaid property taxes are subject to tax sale in accordance with statutes.
County Taxes – The municipality is responsible for levying, collecting and remitting County taxes for
the County of Gloucester. Operations is charged for the amount due the County for the year, based upon
the ratables required to be certified to the County Board of Taxation by January 10th of the current year.
In addition, operations is charged for the County share of Added and Omitted Taxes certified to the
County Board of Taxation by October 10th of the current year and due to be paid to the County by
February 15th of the following year.
School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the
Woolwich-Swedesboro Regional School District and the Kingsway Regional High School. Operations
are charged for the full amount required to be raised from taxation to operate the regional school district
July 1 to June 30.
Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year
(July I to June 30) which remain unpaid at December 31 of the calendar year levied may be deferred to
fund balance to the extent of not more than 50% of the annual levy providing no requisition has been
made by the school district for such amount.
Reserve for Uncollected Taxes – The inclusion of the “Reserve for Uncollected Taxes” appropriation in
the Township’s annual budget protects the Township from taxes not paid currently. The Reserve, the
minimum amount of which is determined on the percentage of collections experienced in the immediate
preceding year, with certain exceptions, is required to provide assurance that cash collected in the current
year will provide sufficient cash flow to meet expected obligations.
Expenditures – are recorded on the “budgetary” basis of accounting. Generally, expenditures are
recorded when an amount is encumbered through the issuance of a numerically controlled purchase order
or when a contract is executed as required by Technical Accounting Directive No. 85-1. When an
expenditure is paid, the amount encumbered is simultaneously liquidated in its original amount.
Encumbrances are offset by an account entitled reserve for encumbrances. The reserve is classified as a
cash liability under New Jersey municipal accounting. At December 31, this reserve represents the
portion of appropriation reserves that has been encumbered and is subject to the same statutory provisions
as appropriation reserves. Appropriations for interest payments on outstanding general capital bonds and
notes are provided on the cash basis.
28
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 1. Summary of Significant Accounting Policies (continued):
Appropriation Reserves – Appropriation reserves covering unexpended appropriation balances are
automatically created at year-end and recorded as liabilities, except for amounts, which may be cancelled
by the governing body. Appropriation reserves and reserve for encumbrances at current year end are
available until December 31st of the succeeding year to meet specific claims, commitments or contracts
incurred during the preceding year. Any unspent balances at this time are lapsed appropriation reserves
and recorded as income.
Long-Term Debt - Long-Term Debt relative to the acquisition of capital assets, is recorded as a liability
in the General Capital Fund. Where an improvement is a “local improvement”, i.e. assessable upon
completion, long-term debt associated with that portion of the cost of the improvement to be funded by
assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the
improvement is fully and permanently funded.
Compensated Absences – Expenditures relating to obligations for unused vested accumulated vacation
and sick leave are not recorded until paid; however, municipalities may establish and budget reserve
funds subject to NJSA 40A:4-39 for the future payment of compensated absences.
Recent Accounting Pronouncements – The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles. GASB has recently adopted accounting statements to be used by governmental units when
reporting financial position and results of operations in accordance with accounting principles generally
accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do not
prepare financial statements in accordance with GAAP and thus do not comply with all of the GASB
pronouncements; and there have been no GASB pronouncements effective for the current year that have a
significant impact of the Township’s financial statements.
Note 2. Deposits and Investments
The Township is governed by the deposit and investment limitations of New Jersey state law.
Deposits
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank
failure, the Township’s deposits may not be returned. Although the Township does not have a formal
policy regarding custodial credit risk, NJSA 17:9-41 et seq. requires that the governmental units shall
deposit public funds in public depositories protected from loss under the provisions of the Governmental
Unit Deposit Protection Act (GUDPA). GUDPA is a supplemental insurance program set forth by the
New Jersey Legislature to protect the deposits of local governmental agencies. The program is
administered by the Commissioner of the New Jersey Department of Banking and Insurance. Under the
Act, the first $250,000 of governmental deposits in each insured depository is protected by FDIC. Public
funds owned by the Township in excess of FDIC insured amounts are protected by GUDPA. However,
GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds or funds that
may pass to the Township relative to the happening of a future condition. Such funds are shown as
Uninsured and Uncollateralized in the schedule below.
As of December 31, 2017, the Township’s bank balance of $10,530,607.39 was insured or collateralized
as follows:
29
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 2. Deposits and Investments (continued):
Insured under FDIC and GUDPA
10,562,165.46
$
Uninsured and Uncollateralized
2,656,391.38
13,218,556.84
$
Investments
Fair Value Measurement – The fair value measurements of investments are required to be reported based
on the hierarchy established by generally accepted accounting principles. Under GAAP, investments are
required to be categorized based on the fair value of inputs of Levels 1, 2 and 3. Under Level 1 inputs,
investments are required to be categorized based on quoted market prices in active markets for identical
investments. Level 2 inputs are based primarily on using observable measurement criteria, including
quoted market prices of similar investments in active and inactive markets and other observable
corroborated factors. Level 3 inputs are assets measured at fair value on a recurring basis using
significant unobservable measurement criteria based on the best information available.
Under regulatory basis of accounting, investments are measured at cost in the Township’s financial
statements. However, had the financial statements been prepared in accordance with GAAP, the
Township’s fair value, hierarchy level and maturities of its investments at December 31, 2017 would be
as followed:
Carrying
Less Than
Value
Level 1
Total
1 Year
1-5 Years
Investment type
Certificates of Deposit
1,938,068.76
$
1,938,068.76
$
1,938,068.76
$
1,393,068.76
$
545,000.00
$
1,938,068.76
$
1,938,068.76
$
1,938,068.76
$
1,393,068.76
$
545,000.00
$
Fund
Current Fund
1,048,068.76
$
1,048,068.76
$
1,048,068.76
$
503,068.76
$
545,000.00
$
Capital Fund
90,000.00
90,000.00
90,000.00
90,000.00
-
Trust Fund - Other
800,000.00
800,000.00
800,000.00
800,000.00
-
1,938,068.76
$
1,938,068.76
$
1,938,068.76
$
1,393,068.76
$
545,000.00
$
Investment Maturities (in Years)
Fair Value as of December 31, 2017
Custodial credit risk related to Investments - This is the risk that in the event of the failure of the
counterparty (e.g., broker-dealer) to a transaction, the Township will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. Other than the rules and
regulations promulgated by N.J.S.A. 40A:5-15.1, the Township has no investment policy to limit
exposure to custodial credit risk.
Interest rate risk - This is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. Other than the rules and regulations promulgated by N.J.S.A. 40A:5-
15.1, the Township does not have a formal investment policy that limits investment maturities as a means
of managing its exposure to fair value losses arising from increasing interest rates.
30
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 2. Deposits and Investments (continued):
Credit risk - Credit risk is the risk that an issuer to an investment will not fulfill its obligation to the holder
of the investment. This is measured by assignment of a rating by a nationally recognized rating
organization. U.S. Government securities or obligations explicitly guaranteed by the U.S. government are
not considered to have credit risk exposure.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude
of a government’s investment in a single issuer. Other than the rules and regulations promulgated by
N.J.S.A. 40A; 5-15.1, the Township’s investment policies place no limit in the amount the Township may
invest in any one issuer. More than 5% of the Township’s investments are in certificates of deposit. These
investments represent 100% of the Township’s total investments.
Note 3. Property Taxes
The following is a three-year comparison of certain statistical information relative to property taxes and
property tax collections for the current and previous two years.
Comparison Schedule of Tax Rates
2017
2016
2015
Tax Rate
3.668
$
3.632
$
3.549
$
Apportionment of Tax Rate:
Municipal
0.507
0.508
0.498
Municipal Open Space
0.050
0.050
0.050
County General
0.785
0.768
0.745
Local School
1.415
1.423
1.408
Regional School
0.911
0.883
0.848
Year
Amount
2017
1,133,399,244.00
$
2016
1,122,915,247.00
2015
1,097,995,392.00
Assessed Valuation
Comparison of Tax Levies and Collections
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2017
42,121,133.56
$
41,667,531.79
$
98.92%
2016
41,102,031.54
40,485,057.57
98.49%
2015
40,120,233.89
39,458,612.91
98.35%
31
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 3. Property Taxes (continued):
Delinquent Taxes and Tax Title Liens
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2017
198,357.38
$
432,799.11
$
631,156.49
$
1.50%
2016
134,729.98
591,706.06
726,436.04
1.77%
2015
172,184.33
586,269.97
758,454.30
1.89%
Year
Number
2017
11
2016
13
2015
N/A
Number of Tax Title Liens
The last tax sale was held on October 3, 2017.
Note: 4: Property Acquired By Tax Title Lien Liquidation
The Township had no properties acquired by liquidation of tax title liens as of December 31, 2017, 2016
or 2015.
Note 5. Fund Balances Appropriated
The following schedule details the amount of fund balances available at the end of the current year and
four previous years and the amounts utilized in the subsequent year’s budgets:
Utilized in
Percentage
Balance
Budget of
of Fund
Year
December 31,
Succeeding Year
Balance Used
Current Fund:
2017
2,815,657.74
$
2,288,662.00
$
81.28%
2016
2,918,145.38
2,190,000.00
75.05%
2015
3,028,200.26
1,975,000.00
65.22%
Note 6. Disaggregated Receivable and Payable Balances
There are no significant components of receivable and payable balances reported in the financial
statements.
32
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 7. Interfund Receivables, Payables and Transfers
The following interfund balances were recorded in the various statements of assets liabilities, reserves and
fund balances at December 31, 2017:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
279,078.14
$
188,229.23
$
State and Federal Grant Fund
190,544.44
-
Animal Control Trust
-
94.24
Municipal Open Space Trust
11,596.89
389,544.64
Trust Other Fund
-
93,795.90
Capital Fund
317,944.54
127,500.00
799,164.01
$
799,164.01
$
The interfund receivables and payables above predominately resulted from payment made by certain
funds on behalf of other funds. All interfund balances are expected to be repaid within one year.
A summary of interfund transfers is as follows:
Transfers
Transfers
Fund
In
Out
Current Fund
25,662.17
$
-
$
State and Federal Grant Fund
-
146,418.98
Trust Other Fund
-
129,243.19
Capital Fund
250,000.00
-
275,662.17
$
275,662.17
$
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to
other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no
bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted
revenue in another.
33
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 8. Fixed Assets
The following is a summary of changes in the General Fixed Assets Account Group for the year ended
December 31, 2017.
Balance
Balance
December 31,
December 31,
2016
Additions
Deletions
2017
Land and Buildings
11,609,300.00
$
-
$
-
$
11,609,300.00
$
Other Improvements
84,900.00
-
-
84,900.00
Machinery & Equipment
3,252,306.00
101,950.00
(169,104.00)
3,185,152.00
14,946,506.00
$
101,950.00
$
(169,104.00)
$
14,879,352.00
$
Note 9. Pension Obligations
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 PERS, please refer to
Division's
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
http://www.nj.gov/treasury/pensions/financial-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and
disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after
25 years of service or under the disability provisions of PERS.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4
members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are
available to tiers 1 and 2 members before reaching age 60, 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.
34
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by
employer (collectively, the Schedules) present amounts that are considered elements of the financial
statements of PERS or its participating employers. Accordingly, they do not purport to be a complete
presentation of the financial position or changes in financial position of PERS or the participating
employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted
accounting principles. Such preparation requires management of PERS to make a number of estimates
and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual
results could differ from those estimates.
Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by
active members and contributing employers. 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 unfunded accrued liability.
Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year
2017, the State's pension contribution was less than the actuarial 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
PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments
due in State fiscal year 2009. Such employers will be credited with the full payment and any such
amounts will not be included in their unfunded liability. The actuaries will determine the unfunded
liability of those retirement systems, by employer, for the reduced normal and accrued liability
contributions provided under this law. This unfunded liability will be paid by the employer in level
annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June
30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended
December 31, 2017, the Township’s contractually required contribution to PERS plan was $144,955.
Components of Net Pension Liability - At December 31, 2017, the Township’s proportionate share of
the PERS net pension liability was $3,642,428. The net pension liability was measured as of June 30,
2017. The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2016, which
was rolled forward to June 30, 2017. The Township’s proportion of the net pension liability was based on
the Township’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2017. The Township’s proportion measured as of June 30, 2017,
was 0.01565% which was a decrease of 0.00153% from its proportion measured as of June 30, 2016.
12/31/2017
12/30/2016
Actuarial valuation date (including roll forward)
June 30, 2017
June 30, 2016
Deferred Outflows of Resources
1,045,674
$
1,617,664
$
Deferred Inflows of Resources
1,060,764
80,329
Net Pension Liability
3,642,428
5,087,201
Township's portion of the Plan's total net pension Liability
0.01565%
0.01718%
Collective Balances at December 31, 2017 and December 31, 2016
35
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2017, the
Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2017
measurement date is $262,722. This expense is not recognized by the Township because of the regulatory
basis of accounting as described in Note 1, but as previously mentioned the Township contributed
$144,955 to the plan in 2017.
At December 31, 2017, the Township reported deferred outflows of resources and deferred inflows of
resources related to PERS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
85,767
$
-
$
Changes of Assumptions
733,824
731,133
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
24,802
-
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
201,281
329,631
1,045,674
$
1,060,764
$
The Township will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
36
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
June 30, 2015
5.72
5.72
June 30, 2016
5.57
5.57
June 30, 2017
5.48
5.48
37
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PERS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2018
101,132
$
2019
142,931
2020
80,453
2021
(228,118)
2022
(111,489)
(15,091)
$
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
2.25%
Salary Increases:
Through 2026
1.65% - 4.15% Based on Age
Thereafter
2.65% - 5.15% Based on Age
Investment Rate of Return
7.00%
Mortality Rate Table
RP-2000
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2011 - June 30, 2014
Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for
male and female active participants. For State employees, mortality tables are set back 4 years for males
and females. For local employees, mortality tables are set back 2 years for males and 7 years for females.
In addition, the tables provide for future improvements in mortality from the base year of 2013 using a
generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement
mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback
1 year for males and females) for service retirements and beneficiaries of former members and a one-year
static projection based on the mortality improvement Scale AA. In addition, the tables for service
retirements and beneficiaries of former members provide for future improvements in mortality from the
base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014
38
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000
Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not
exactly conform to these assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience
deviates, the larger the impact on future financial statements.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2017) 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 rates of return for each major asset class included in PERS’s target asset allocation as of June
30, 2017 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute Return/Risk Mitigation
5.00%
5.51%
Cash
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Markets Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
100.00%
39
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS)
Discount Rate - The discount rate used to measure the total pension liability was 5.00% as of June 30,
2017. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.58% as of June 30, 2017 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers will be made based on the contribution rate in the most recent fiscal
year. The State employer contributed 40% of the actuarially determined contributions and the local
employers contributed 100% of their actuarially determined contributions. Based on those assumptions,
the plan’s fiduciary net position was projected to be available to make projected future benefit payments
of current plan members through 2040. Therefore, the long-term expected rate of return on plan
investments was applied to projected benefit payments through 2040 and the municipal bond rate was
applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Township’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (4.00%) or 1-percentage-point higher (6.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(4.00%)
(5.00%)
(6.00%)
Township's Proportionate Share
of the Net Pension Liability
4,518,679
$
3,642,428
$
2,912,402
$
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 PFRS, please refer to
the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at
http://www.nj.gov/treasury/pensions/financial-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death
and disability benefits. All benefits vest after ten years of service, except disability benefits which vest
after four years of service.
The following represents the membership tiers for PFRS:
Tier
Definition
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
40
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1 % for each year if 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.
Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by
employer (collectively, the Schedules) present amounts that are considered elements of the financial
statements of PFRS or its participating employers. Accordingly, they do not purport to be a complete
presentation of the financial position or changes in financial position of PFRS or the participating
employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted
accounting principles. Such preparation requires management of PFRS to make a number of estimates and
assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results
could differ from those estimates.
Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by
active members and contributing employers. 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 cost and unfunded accrued liability. For fiscal year 2017, the State contributed an amount less
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 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 will be adjusted by the rate of return on the actuarial value of assets.
For the year ended December 31, 2017, the Township’s contractually required contributions to PFRS plan
was $419,410.
The employee contributions for PFRS are 10.00% of employees’ annual compensation, as defined.
Net Pension Liability and Pension Expense - At December 31, 2017 the Township’s proportionate
share of the PFRS net pension liability was $7,316,095. The net pension liability was measured as of June
30, 2017. The total pension liability used to calculate the net pension liability was determined using
update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2016,
to the measurement date of June 30, 2017. The Township’s proportion of the net pension liability was
based on the Township’s actual contributions to the plan relative to the total of all participating
employers’ contributions for the year ended June 30, 2017. The Township’s proportion measured as of
June 30, 2017, was 0.04739%, which was an increase of 0.00139% from its proportion measured as of
June 30, 2016.
41
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
12/31/2017
12/31/2016
Actuarial valuation date (including roll forward)
June 30, 2017
June 30, 2016
Deferred Outflows of Resources
1,800,913
$
2,537,726
$
Deferred Inflows of Resources
1,332,018
190,411
Net Pension Liability
7,316,095
8,786,622
Township's portion of the Plan's total net pension Liability
0.04739%
0.04600%
Collective Balances at December 31, 2017 and December 31, 2016
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2017, the
Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2017
measurement date was $663,519. This expense is not recognized by the Township because of the
regulatory basis of accounting as described in Note 1, but as previously mentioned the Township
contributed $419,410 to the plan in 2017.
At December 31, 2017, the Township had deferred outflows of resources and deferred inflows of
resources related to PFRS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
47,463
$
42,939
$
Changes of Assumptions
902,156
1,198,163
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
139,608
-
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
711,686
90,916
1,800,913
$
1,332,018
$
42
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
-
5.53
June 30, 2016
-
5.58
June 30, 2017
5.59
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.17
6.17
June 30, 2015
5.53
5.53
June 30, 2016
5.58
5.58
June 30, 2017
5.59
5.59
43
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PERS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2018
226,209
$
2019
352,106
2020
148,391
2021
(132,312)
2022
(125,498)
468,896
$
Special Funding Situation – Under N.J.S.A. 43:16A-15, local participating employers are responsible
for their own contributions based on actuarially determined amounts, except where legislation was passed
which legally obligated the State if certain circumstances occurred. The legislation which legally
obligates the state is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001,
Chapter 511, P.L, 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The
amounts contributed on behalf of the local participating employers under this legislation is considered to
be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a non-
employer contributing entity. Since the local participating employers do not contribute under this
legislation directly to the plan (except for employer specific financed amounts), there is no net pension
liability to report in the financial statements of the local participating employers related to this legislation.
Additionally, the State’s proportionate share of the PFRS net pension liability attributable to the
Township is $819,464 as of December 31, 2017. The net pension liability was measured as of June 30,
2017. The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2016, to the
measurement date of June 30, 2017. The State’s proportion of the net pension liability associated with the
Township was based on a projection of the Township’s long-term share of contributions to the pension
plan relative to the projected contributions of all participating members, actuarially determined. The
State’s proportion measured as of June 30, 2017 was 0.04739%, which was an increase of 0.00139% from
its proportion measured as of June 30, 2016, which is the same proportion as the Township’s. At
December 31, 2017, the Township’s and the State of New Jersey’s proportionate share of the PFRS net
pension liability were as follows:
Township's Proportionate Share of Net Pension Liability
7,316,095
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Township
819,464
8,135,559
$
44
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
At December 31, 2017, the State’s proportionate share of the PFRS expense, associated with the
Township, calculated by the plan as of the June 30, 2017 measurement date was $100,239.
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
2.25%
Salary Increases:
Through 2026
2.10% - 8.98% Based on Age
Thereafter
3.10% - 9.98% Based on Age
Investment Rate of Return
7.00%
Mortality Rate Table
RP-2000
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2010 - June 30, 2013
Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for
male and female active participants. For State employees, mortality tables are set back 4 years for males
and females. For local employees, mortality tables are set back 2 years for males and 7 years for females.
In addition, the tables provide for future improvements in mortality from the base year of 2013 using a
generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement
mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback
1 year for males and females) for service retirements and beneficiaries of former members and a one-year
static projection based on the mortality improvement Scale AA. In addition, the tables for service
retirements and beneficiaries of former members provide for future improvements in mortality from the
base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014
projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000
Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2010 to June 30, 2013.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2017) 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
45
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
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 rates of return for each major asset class included in PFRS’s target asset allocation as of June
30, 2017 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute Return/Risk Mitigation
5.00%
5.51%
Cash
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit Oriented Hedge Funds
1.00%
6.60%
Debt Related Private Equity
2.00%
10.63%
Debt Related Real Estate
1.00%
6.61%
Private Real Asset
2.50%
11.83%
Equity Related Real Estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. Developed Markets Equity
11.50%
9.00%
Emerging Markets Equity
6.50%
11.64%
Buyouts/Venture Capital
8.25%
13.08%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 6.14% as of June 30,
2017. The single blended discount rate was based on long-term expected rate of return on pension plan
investments of 7.00%, and a municipal bond rate of 3.58% as of June 30, 2017 based on the Bond Buyer
Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with
an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members will be made at the current member contribution rates and
that contributions from employers will be made based on the contribution rate in the most recent fiscal
year. The State employer contributed 40% of the actuarially determined contributions and the local
employers contributed 100% of their actuarially determined contributions. Based on those assumptions,
the plan’s fiduciary net position was projected to be available to make projected future benefit payments
of current plan members through 2057. Therefore, the long-term expected rate of return on plan
investments was applied to projected benefit payments through 2057 and the municipal bond rate was
applied to projected benefit payments after that date in determining the total pension liability.
46
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS)
Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Township’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.14%) or 1-percentage-point higher (7.14%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.14%)
(6.14%)
(7.14%)
Township's Proportionate Share
of the Net Pension Liability
9,639,558
$
7,316,095
$
5,407,106
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Township
1,079,711
819,464
605,641
10,719,269
$
8,135,559
$
6,012,747
$
Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued
by the Township.
47
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt
The following schedule represents the Township’s summary of debt, as filed in the Township’s Annual
Debt Statement required by the Local Bond Law of New Jersey for the current and two previous years:
2017
2016
2015
Issued:
General:
Bonds, Notes and Loans
16,153,889.01
$
18,987,777.93
$
17,211,969.62
$
Total Debt Issued
16,153,889.01
18,987,777.93
17,211,969.62
Authorized but not issued:
General:
Bonds, Notes and Loans
15,400,000.00
-
-
Total Authorized But Not Issued
15,400,000.00
-
-
Total Gross Debt
31,553,889.01
$
18,987,777.93
$
17,211,969.62
$
Deductions:
General:
Funds on Hand For Payment of Bonds and Notes:
Reserve for Debt Service
161,838.65
161,838.65
-
Capital Lease secured by GCIA
-
8,730,000.00
9,095,000.00
Total Deductions
161,838.65
8,891,838.65
9,095,000.00
Total Net Debt
31,392,050.36
$
10,095,939.28
$
8,116,969.62
$
Summary of Statutory Debt Condition - Annual Debt Statement
The following schedule is a summary of the previous schedule and is prepared in accordance with the
required method of setting up the Annual Debt Statement:
Gross Debt
Deductions
Net Debt
Regional School Debt
47,541,514.80
$
47,541,514.80
$
-
$
General Debt
31,553,889.01
161,838.65
31,392,050.36
79,095,403.81
$
47,703,353.45
$
31,392,050.36
$
Net Debt $31,392,050.36 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as
amended, $1,212,366,964.33, equals 2.589%. New Jersey statute 40A:2-6, as amended, limits the debt of
a Municipality to 3.5% of the last three preceding year’s average equalized valuations of real estate,
including improvements and the assessed valuation of Class II Railroad Property. The remaining
borrowing power in dollars at December 31, 2017 is calculated as follows:
48
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt (continued):
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
42,432,843.75
$
Net Debt
31,392,050.36
Remaining Borrowing Power
11,040,793.39
$
General Debt
A. Serial Bonds Payable
On April 15, 2015, the Township issued $5,260,000.00 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates of 3.00% and mature on December 15, 2025.
On October 13, 2016, the Township issued $5,500,000.00 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates varying from 2.00% to 4.00% and mature on October 1,
2036.
On August 23, 2017, the Township issued $6,535,000 of Refunding Bonds to refund the callable portion
of the outstanding $8,730,000 Obligations under Capital Lease. The Refunding Bonds generated
$1,151,948.04 in net present value savings. The Refunding Bonds were issued at interest rates varying
from 2.00% to 4.00% and mature on June 1, 2032.
Principal and interest due on the outstanding bonds is as follows:
Year
Principal
Interest
Total
2018
$ 1,000,000.00 $ 508,900.00 $ 1,508,900.00
2019
1,015,000.00 482,200.00 1,497,200.00
2020
1,050,000.00 451,300.00 1,501,300.00
2021
1,090,000.00 417,550.00 1,507,550.00
2022
1,120,000.00 382,550.00 1,502,550.00
2023-2027 5,105,000.00 1,330,150.00 6,435,150.00
2028-2032 4,230,000.00 579,075.00 4,809,075.00
2033-2036 1,300,000.00 96,687.50 1,396,687.50
15,910,000.00
$
4,248,412.50
$
20,158,412.50
$
B. Bond Anticipation Notes Payable – Short Term Debt
The Township had no bond anticipation notes outstanding in the General Capital Fund at December 31,
2017.
49
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 10. Municipal Debt (continued):
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2017, the Township had $15,400,000 in various General Capital bonds and notes
authorized but not issued.
D. Loans Payable
Green Acres Trust Program Loans
The Township has contracted with the State of New Jersey, Department of Environmental Protection for
Green Trust Program Loans to fund a portion of the costs incurred with the improvements to Locke
Avenue Park and Park Expansion Projects.
Principal and interest due on the outstanding loans is as follows:
Year
Principal
Interest
Total
2018
$ 29,469.58 $ 4,731.17 $ 34,200.75
2019
30,061.92 4,138.84 34,200.76
2020
30,666.17 3,534.58 34,200.75
2021
31,282.57 2,918.00 34,200.57
2022
27,247.61 2,289.40 29,537.01
2023-2027
95,161.16 4,331.95 99,493.11
243,889.01
$
21,943.94
$
265,832.95
$
Summary of Principal Debt
A summary of the changes in long-term and short term debt of the Township is as follows:
Balance
Balance
Balance
December 31,
Accrued/
Retired/
December 31,
Due Within
2016
Increases
Decreases
2017
One Year
General Capital:
General Bonds
9,985,000.00
$
6,535,000.00
$
610,000.00
$
15,910,000.00
$
1,000,000.00
$
Loans
272,777.93
-
28,888.92
243,889.01
29,469.58
Capital Leases
8,730,000.00
-
8,730,000.00
-
-
Authorized but Not Issued
-
15,400,000.00
-
15,400,000.00
-
18,987,777.93
$
21,935,000.00
$
9,368,888.92
$
31,553,889.01
$
1,029,469.58
$
50
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 11. Deferred Charges to be Raised in Succeeding Budgets
Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, 2017
the following deferred charges are shown on the statement of assets, liabilities, reserves and fund balances
of the following funds:
Balance
Balance to
December 31,
2018 Budget
Succeeding
Description
2017
Appropriation
Budgets
Current Fund:
Emergency Authorization (40A:4-47)
125,000.00
$
125,000.00
$
-
$
Note 12. Deferred School Taxes
School taxes have been raised and the liability deferred by statutes. The balance of unpaid local school
taxes levied, amount deferred and the amount reported as a liability (payable) at December 31, are as
follows:
Local Taxes
2017
2016
Total Balance of Local Tax
8,015,489.81
$
7,991,010.79
$
Deferred Taxes
5,410,504.32
5,410,504.32
Local Tax Payable
2,604,985.49
$
2,580,506.47
$
Balance, December 31,
Note 13. Deferred Compensation Salary Account
The Township offers its employees a Deferred Compensation Plan in accordance with Internal Revenue
Code Section 457 which has been approved by the Director of the Division of Local Government
Services. The Plan, available to all full time employees at their option, permits employees to defer a
portion of their salary to future years. The deferred compensation is not available to participants until
termination, retirement, death or unforeseeable emergency. Amounts deferred under Section 457 plans
must be held in trust for the exclusive benefits of participating employees and not be accessible by the
Township or its creditors. Since the Township does not have a fiduciary relationship with the Plan, the
balances and activities of the Plan are not reported in the Township’s financial statements.
51
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 14. Accrued Sick, Vacation and Compensation Time
As discussed in Note 1 and in accordance with accounting principles prescribed by the State of New
Jersey, the cash basis of accounting is followed for recording the Township’s liability related to unused
vacation, sick pay and compensation time. The Township permits certain employees within limits to
accumulate unused vacation, sick pay and compensation time, which may be taken as time off or paid at a
later date at an agreed upon rate. In accordance with New Jersey accounting principles, this unused
accumulated absences amount is not reported as a liability in the accompanying financial statements. It is
estimated that accrued benefits for compensated absences are valued at $140,556.79 at December 31,
2017.
Note 15. Risk Management
The Township 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. The Township maintains
commercial insurance coverage for property, liability and surety bonds through the Gloucester, Salem and
Cumberland Counties Municipal Joint Insurance Fund (“Fund”).
The Fund provides the Township with the following coverage:
Property Policy
Environmental Legal Liability Policy
Automobile Policy
Excess Liability Policy
Crime Policy and Excess Crime Policy Public Officials and Employment Liability
Casualty Policy
Volunteer Directors and Officers Policy
Workers’ Compensation and Excess Workers Compensation Policy
Contributions to the Fund, are payable in an annual premium and is based on actuarial assumptions
determined by the Fund’s actuary. The Township’s agreement with the pool provides that the pool will
be self-sustaining through member premiums and will reinsure through the Municipal Excess Liability
Joint Insurance Fund for claims in excess of $50,000 to $250,000 based on the line of coverage for each
insured event.
The Fund publishes its own financial report for the year ended December 31, 2017, which can be obtained
from:
Gloucester, Salem, Cumberland Counties Municipal Joint Insurance Fund
Post Office Box 488
Marlton, New Jersey 08053
52
TOWNSHIP OF WOOLWICH
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017
Note 16. Contingencies
Grantor Agencies
The Township receives financial assistance from the State of New Jersey and the U.S. government in the
form of grants. Entitlement to the funds is generally conditional upon compliance with terms and
conditions of the grant agreements and applicable regulations, including the expenditure of the funds for
eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial
and compliance audits by grantors. As a result of these audits, costs previously reimbursed could be
disallowed and require repayment to the grantor agency. As of December 31, 2017 the Township
estimates that no material liabilities will result from such audits.
Litigation
The Township is a defendant in several legal proceedings that are in various stages of litigation. It is
believed that the outcome, or exposure to the Township, from such litigation is either unknown or
potential losses, if any, would not be material to the financial statements.
Tax Appeals
Losses arising from tax appeals are recognized at the time a decision is rendered by an administrative or
judicial body; however, municipalities may establish reserves transferred from tax collections or by
budget appropriation for future payments of tax appeal losses. There are no significant pending tax
appeals as of December 31, 2017.
Note 17. Subsequent Events
The Township has evaluated subsequent events through June 21, 2018, the date the financial statements
were available to be issued and has noted the following:
During May of 2018, the Township approved two new bond ordinances. Ordinance 2018-05 was
approved to be used for various roadway improvements and preliminary costs for a total of $147,000.
The total amount of this project will be funded through the capital improvement fund. Ordinance 2018-
09 was approved to be used for the construction and improvement of municipally owned open space for
recreation for a total of $3,250,000 and authorized the issuance of debt in the amount of $3,000,000 in
bonds or notes.
53
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54
SUPPLEMENTARY EXHIBITS
55
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56
CURRENT FUND
57
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58
EXHIBIT A-4
Balance December 31, 2016
6,858,000.58
$
-
$
Increased by Receipts:
Taxes Collector
43,633,772.69
$
Revenue Accounts Receivable
1,319,340.86
Miscellaneous Revenue Not Anticipated
462,872.16
Refunds of Current Year Appropriations
630,643.46
Interest on Investment
18,153.03
Due to Trust Other
6,743.19
Due to State & Federal Grant Fund
18,855.98
Federal & State Grants Unappropriated
16,010.69
$
Federal & State Grants Receivable
144,038.86
Total Receipts
46,090,381.37
160,049.55
Subtotal
52,948,381.95
160,049.55
Decreased by Disbursements:
2017 Appropriations
8,535,823.24
Appropriation Reserves
208,427.82
Encumbrances Payable
159,653.95
County Taxes Payable
8,881,556.10
Due County for Added & Omitted Taxes
66,468.51
Local District School Tax
16,006,499.98
Regional High School Tax
10,333,009.02
Municipal Open Space Tax
566,700.00
Accounts Payable
7,625.75
Tax Overpayments
68,211.22
Refund of Prior Year Revenue
45,365.61
Interfund Disbursement - Grant
18,855.98
Federal & State Grants - Appropriated
141,193.57
Total Disbursements
44,879,341.20
160,049.55
Balance December 31, 2017
8,069,040.75
$
-
$
Cash
7,020,971.99
$
Investments
1,048,068.76
Total
8,069,040.75
$
CURRENT FUND
GRANT FUND
STATE & FEDERAL
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF CASH AND INVESTMENTS - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
59
EXHIBIT A-5
Balance - December 31, 2016
-
$
Increased by:
Interest and Cost on Taxes
108,373.23
$
Taxes Receivable
41,774,150.84
Tax Title Lien Redemptions
19,229.28
Senior & Vet Receipts
53,318.18
Prepaid Taxes
1,678,701.16
43,633,772.69
43,633,772.69
Decreased by:
Payments to Chief Financial Officer
43,633,772.69
43,633,772.69
Balance - December 31, 2017
-
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2017
60
EXHIBIT A-6
BALANCE
SENIOR
TRANSFERRED
TRANSFERRED
BALANCE
DECEMBER 31,
2017
ADDED
CITIZENS &
OVERPAYMENT
OVERPAYMENT
TO TAX
TO
DECEMBER 31,
YEAR
2016
LEVY
TAXES
2016
2017
VETERANS
APPLIED
CREATED
CANCELED
TITLE LIENS
ARREARS
2017
2012
337.49
$
-
$
-
$
-
$
10.00
$
-
$
851.53
$
-
$
(851.53)
$
-
$
-
$
327.49
$
2013
0.07
-
-
-
-
-
-
-
-
-
-
0.07
2014
-
-
-
-
-
18.53
84,318.53
84,300.00
-
-
-
2015
9,277.77
-
-
-
501.09
-
6,408.22
6,393.74
(14.48)
-
-
8,776.68
2016
565,739.25
-
-
-
493,682.42
(1,000.00)
18,570.59
19,566.63
1,623.61
41,670.70
(21,776.62)
8,981.94
ARREARS
16,351.48
-
-
-
3,735.37
-
-
-
-
-
21,776.62
34,392.73
Total
591,706.06
-
-
-
497,928.88
(1,000.00)
25,848.87
110,278.90
85,057.60
41,670.70
-
52,478.91
2017
-
41,580,424.40
540,709.16
273,006.04
41,276,221.96
53,250.00
162,920.60
97,866.81
41,542.36
31,739.21
-
380,320.20
Total
591,706.06
$
41,580,424.40
$
540,709.16
$
273,006.04
$
41,774,150.84
$
52,250.00
$
188,769.47
$
208,145.71
$
126,599.96
$
73,409.91
$
-
$
432,799.11
$
Tax Yield:
General Property Tax
41,580,424.40
$
Added Taxes (54:4-63.1 et. seq.)
540,709.16
42,121,133.56
$
Total Tax Yield
42,121,133.56
$
Tax Levy:
Local School District Tax (Abstract)
16,030,979.00
$
Regional High School Tax (Abstract)
10,333,009.00
Municipal Open Space (Abstract)
566,700.00
Municipal Open Space (Added)
7,404.01
County Taxes:
County Tax (Abstract)
7,801,147.44
$
County Library Tax (Abstract)
586,651.38
County Open Space
493,555.68
Due County for Added Taxes (54:4-63,1 et.seq.)
115,331.72
Total County Taxes
8,996,686.22
Local Tax for Municipal Purposes
5,756,643.00
Add: Additional Tax Levied
429,712.33
6,186,355.33
Total Tax Levy
42,121,133.56
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
COLLECTED
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
ANALYSIS OF 2017 PROPERTY TAX LEVY:
61
EXHIBIT A-7
Balance December 31, 2016
134,729.98
$
Increased by:
Transfers from Taxes Receivable
73,409.91
$
Interest & Costs Accrued by Sale
9,446.77
82,856.68
Subtotal
217,586.66
Decreased by:
Collections
19,229.28
Balance December 31, 2017
198,357.38
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF TAX TITLE LIENS
62
EXHIBIT A-8
BALANCE
BALANCE
DECEMBER 31,
ACCRUED IN
DECEMBER 31,
2016
2017
TREASURER
CANCELLED
2017
Miscellaneous Revenue Anticipated:
Municipal Court
10,769.77
$
175,232.43
$
172,226.36
$
-
$
13,775.84
$
Energy Receipts Tax
-
414,809.00
414,809.00
-
-
Garden State Trust
-
5,939.00
5,939.00
-
-
Shared Services - Swedesboro:
-
Police Coverage and Protection
-
639,061.50
639,061.50
-
-
Recreation
-
10,250.00
10,250.00
-
-
Kingsway Regional School District
-
77,055.00
77,055.00
-
-
Total
10,769.77
$
1,322,346.93
$
1,319,340.86
$
-
$
13,775.84
$
Cash Receipts
1,319,340.86
$
Total
1,319,340.86
$
TOWNSHIP OF WOOLWICH
FOR THE YEAR ENDED DECEMBER 31, 2017
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
CURRENT FUND
63
EXHIBIT A-9
BALANCE
BALANCE
PAID
DECEMBER 31,
AFTER
OR
BALANCE
2016
TRANSFERS
CHARGED
LAPSED
General Government:
General Administration:
Other Expenses
1,056.19
1,056.19
1,039.00
17.19
Mayor and Committee:
Other Expenses
112.54
112.54
109.78
2.76
Municipal Clerk:
Other Expenses
2,676.92
2,676.92
2,608.95
67.97
Financial Administration (Treasury):
Other Expenses
20,931.03
20,931.03
17,482.30
3,448.73
Audit Services:
Other Expenses
18,428.75
18,428.75
18,428.75
-
Revenue Administration (Tax Collection)
Other Expenses:
1,334.27
1,334.27
44.00
1,290.27
Legal Services (Legal Department)
Other Expenses
22,990.42
25,990.42
25,983.53
6.89
Engineering Services:
Other Expenses
56,812.55
56,812.55
42,957.05
13,855.50
Land Use Administration:
Planning Board:
Other Expenses
33,261.99
30,261.99
16,247.57
14,014.42
Insurance:
Workmen's Compensation Insurance
11,871.00
11,871.00
200.00
11,671.00
Employee Group Health
75,938.11
75,938.11
-
75,938.11
Health Benefit Waiver
33,186.90
33,186.90
1,482.79
31,704.11
Public Safety Functions:
Police Department:
Salaries and Wages
18,333.19
18,333.19
310.00
18,023.19
Other Expenses
15,929.00
15,929.00
11,707.60
4,221.40
Aid to Volunteer Fire Company:
Other Expenses
45,644.43
45,644.43
31,980.81
13,663.62
Municipal Court:
Other Expenses
5,997.95
5,997.95
565.24
5,432.71
Public Works Functions:
Snow Removal:
Salaries and Wages
30,000.00
30,000.00
30,000.00
-
Other Expenses
21,837.59
21,837.59
21,267.59
570.00
Solid Waste Sanitation:
Other Expenses
21,023.64
21,023.64
10,889.00
10,134.64
Streets & Road Maintenance:
Other Expenses
26,803.33
26,803.33
4,802.57
22,000.76
Buildings & Grounds:
Other Expenses
19,018.81
19,018.81
5,902.82
13,115.99
Vehicle Maintenance:
Other Expenses
6,476.31
6,476.31
3,429.76
3,046.55
Park & Recreation Functions:
Maintenance of Parks:
Other Expenses
36,982.33
36,982.33
33,107.53
3,874.80
Utility Expenses & Bulk Purchases:
Electricity
10,788.00
10,788.00
10,788.00
-
Street Lighting
9,968.97
9,968.97
9,968.97
-
Telephone
3,453.28
3,453.28
1,180.39
2,272.89
Water/Fire Hydrant Service
36,863.89
36,863.89
25,430.10
11,433.79
Heating
3,606.76
3,606.76
1,127.94
2,478.82
Gasoline
13,080.82
13,080.82
2,220.98
10,859.84
Landfill/Solid Waste Disposal Costs:
Sanitary Landfill
99,139.05
99,139.05
34,849.56
64,289.49
Interlocal Service Agreements - Swedesboro:
Recreation
7,935.36
7,935.36
5,587.61
2,347.75
Deferred Charges & Statutory Expenditures:
Social Security System (O.A.S.I.)
3,762.33
3,762.33
24.42
3,737.91
Defined Contribution Retirement Program
1,037.77
1,037.77
17.42
1,020.35
All Others
25,877.16
25,877.16
-
25,877.16
Total
742,160.64
742,160.64
371,742.03
370,418.61
2016 Appropriation Reserves
577,706.59
$
Cash
368,081.77
$
2016 Encumbrances
159,653.95
Accounts Payable
3,660.26
Total
737,360.54
$
Total
371,742.03
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF 2016 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2017
64
EXHIBIT A-10
Balance December 31, 2016:
School Tax Deferred
5,410,504.32
$
School Tax Payable
2,580,506.47
7,991,010.79
Increased by Levy:
School Year July 1, 2017 - June 30, 2018
16,030,979.00
Subtotal
24,021,989.79
Decreased by:
Payments
16,006,499.98
Subtotal
8,015,489.81
Balance December 31, 2017:
School Tax Deferred
5,410,504.32
School Tax Payable
2,604,985.49
Balance December 31, 2017
8,015,489.81
$
2017 Payments
16,006,499.98
$
Less School Taxes Payable at December 31, 2016
2,580,506.47
Plus School Taxes Payable at December 31, 2017
2,604,985.49
Amount Charged to 2017 Operations
16,030,979.00
$
EXHIBIT A-11
Balance December 31, 2016
0.12
$
Increased by:
Levy - Calendar Year
10,333,009.00
Subtotal
10,333,009.12
Decreased by:
Payments
10,333,009.02
Balance December 31, 2017
0.10
$
SCHEDULE OF REGIONAL HIGH SCHOOL TAX PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT TAX
FOR THE YEAR ENDED DECEMBER 31, 2017
ANALYSIS OF AMOUNT CHARGED TO OPERATIONS
65
EXHIBIT A-12
Balance, December 31, 2016
66,468.51
$
Increased by:
General County Taxes
7,801,147.44
$
County Library Taxes
586,651.38
County Open Space Preservation
493,555.68
County Added & Omitted Taxes
115,331.72
8,996,686.22
Subtotal
9,063,154.73
Decreased by:
Payments
8,948,024.61
Balance, December 31, 2017
115,130.12
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
YEAR ENDED DECEMBER 31, 2017
66
EXHIBIT A-13
BALANCE
TRANSFERRED
BALANCE
DECEMBER 31,
ANTICIPATED
FROM
DECEMBER 31,
GRANT
2016
REVENUE
RECEIVED
UNAPPROPRIATED
ADJUSTMENT
2017
State Grants:
Municipal Alliance for Drug and Alcohol Abuse
13,635.20
$
-
$
-
$
-
$
-
$
13,635.20
$
Body Armor Grant
515.56
2,184.17
-
2,184.17
-
515.56
Sustainable Jersey Small Grant
12,862.85
-
-
-
-
12,862.85
Recycling Tonnage Grant
12,525.26
12,853.20
25,378.46
-
-
-
Alcohol Education and Rehabilitation Grant
(295.97)
2,019.64
418.21
1,601.43
295.97
-
Clean Communities Program
1,159.63
48,958.09
22,488.00
26,470.09
-
1,159.63
DVRPC - Master Plan
89,452.35
-
64,081.69
-
-
25,370.66
NJ Department of Transportation - Bikeways
170,000.00
-
-
-
-
170,000.00
NJ Department of Transportation - Shared Use Path
194,047.00
-
127,500.00
-
-
66,547.00
NJDEP - Recreation Trails Program - match
6,000.00
-
-
-
-
6,000.00
Federal Grants:
Drunk Driving Enforcement Grant
5,246.60
-
3,080.00
-
-
2,166.60
Distracted Driving Grant
-
2,392.50
2,392.50
-
-
-
Click It or Ticket Grant
-
2,200.00
2,200.00
-
-
-
NJDEP - Recreation Trails Program
24,000.00
-
24,000.00
-
-
-
CDBG
13,239.20
-
-
-
-
13,239.20
Total
542,387.68
$
70,607.60
$
271,538.86
$
30,255.69
$
295.97
$
311,496.70
$
Cash Receipts
144,038.86
$
Due from Capital Fund
127,500.00
Total
271,538.86
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE
67
EXHIBIT A-14
BALANCE
BALANCE
DECEMBER 31,
2017 BUDGET
ENCUMBRANCES
DECEMBER 31,
APPROPRIATION
2016
APPROPRIATION
RECLASSIFIED
EXPENDED
ENCUMBRANCES
ADJUSTED
2017
State:
Recycling Tonnage Grant
50,308.18
$
12,853.20
$
300.00
$
61,579.40
$
11,216.00
$
28,381.78
$
19,047.76
$
SHARE Grant
19,918.99
-
-
-
-
-
19,918.99
Clean Communities Grant
62,914.44
48,958.09
-
26,195.56
1,797.00
(28,381.78)
55,498.19
Municipal Alliance for Drug and Alcohol Abuse
State Share
4,895.00
-
-
-
-
-
4,895.00
Municipal Share
17,582.31
-
-
-
-
-
17,582.31
Hazardous Site Remediation Grants:
Jersey Fresh Grant
600.00
-
-
-
-
-
600.00
Alcohol Education Rehabilitation Grant
Municipal Court - Salaries and Wages
4,160.17
2,082.64
-
970.00
-
-
5,272.81
Body Armor Replacement Grant
10,230.03
2,184.17
-
9,440.20
-
-
2,974.00
Sustainable Jersey Small Grant
3,250.00
-
-
-
-
-
3,250.00
DVRPC - Master Plan
-
-
621.46
-
621.46
-
-
NJDEP - Recreation Trails Program
Municipal Share
6,000.00
-
-
-
-
-
6,000.00
NJDOT - Shared Use Path
194,047.00
-
-
-
-
-
194,047.00
NJDOT - Bikeways
104,500.00
-
41,052.75
33,928.76
7,123.99
-
104,500.00
Total State
478,406.12
66,078.10
41,974.21
132,113.92
20,758.45
-
433,586.06
Federal:
Municipal Stormwater Regulation Grant
588.50
-
-
-
-
-
588.50
Drunk Driving Enforcement Fund
10,438.76
-
-
4,487.15
-
-
5,951.61
Distracted Driving Grant
-
2,392.50
-
2,392.50
-
-
-
Click It or Ticket Grant
-
2,200.00
-
2,200.00
-
-
-
NJDEP - Recreation Trails Program
24,000.00
-
-
-
-
-
24,000.00
Community Development Block Grant
1,145.83
-
-
-
-
-
1,145.83
Total Federal
36,173.09
4,592.50
-
9,079.65
-
-
31,685.94
Total
514,579.21
$
70,670.60
$
41,974.21
$
141,193.57
$
20,758.45
$
-
$
465,272.00
$
TOWNSHIP OF WOOLWICH
CURRENT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS - APPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2017
68
EXHIBIT A-15
TRANSFERRED
BALANCE
TO 2017
BALANCE
DECEMBER 31,
GRANT
DECEMBER 31,
GRANT
2016
APPROPRIATED
RECEIVED
2017
State Grants:
Recycling Tonnage Grant
-
$
-
$
13,582.41
$
13,582.41
$
Alcohol Education Rehabilitation Grant
1,601.43
1,601.43
-
-
Clean Communities Grant
26,470.09
26,470.09
-
-
Click It or Ticket
-
-
-
-
Body Armor Grant
2,184.17
2,184.17
2,428.28
2,428.28
Total Grants
30,255.69
$
30,255.69
$
16,010.69
$
16,010.69
$
SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
FEDERAL AND STATE GRANT FUND
69
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70
TRUST FUND
71
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72
EXHIBIT B-3
Balance December 31, 2016
2,002,103.91
$
747,944.18
$
7,559.10
$
Increased by Receipts:
Public Defender Fees
2,832.38
$
-
$
-
$
COAH Trust Funds
7,740.43
-
-
Unemployment Trust
9.46
-
-
Escrow Deposits
343,766.66
-
-
Woolwich Recreation Trust
91,654.49
-
-
Police Forfeited Funds
541.45
-
-
Deposits for Police Overtime
656,424.19
-
-
Municipal Open Space Tax
-
566,700.00
-
Developer's Tree Compensation
262.06
-
-
UCC Fees
425,510.40
-
-
Developer's Recreation Fees
150.13
-
-
Payroll
4,587,548.06
-
-
Snow Removal
42,717.29
-
-
POAA
26.54
-
-
Municipal Functions Developer's Fees
440,697.27
-
-
Developer's Open Space
2,434.81
-
-
Election
13,800.00
-
-
Interfunds Received
-
-
-
Dog License Fees
-
-
6,777.00
Interest
-
841.91
8.84
6,616,115.62
567,541.91
6,785.84
Subtotal
8,618,219.53
1,315,486.09
14,344.94
Decreased by Disbursements:
Animal Control Expenditures
-
-
6,451.87
Municipal Open Space
-
648,427.06
-
Woolwich Recreation Trust
108,874.50
-
-
Unemployment Trust
5,553.42
-
-
Developer's Tree Compensation
40,582.38
-
-
Police Overtime Expenses
634,776.62
-
-
Public Defender Fees
3,125.00
-
-
Municipal Functions Developer's Fees
413,606.41
-
-
Police Forfeited Funds
-
-
-
UCC Trust
711,847.17
-
-
Developer's Recreation Fees
13,962.90
-
-
Payroll
4,568,881.87
-
-
Snow Removal Trust
54,915.53
-
-
Escrow Disbursements
285,638.68
-
-
Developer's Open Space
14,212.67
-
-
Polling for Local Elections
13,800.00
-
-
6,869,777.15
648,427.06
6,451.87
Balance December 31, 2017
1,748,442.38
$
667,059.03
$
7,893.07
$
TRUST OTHER
ANIMAL CONTROL
TOWNSHIP OF WOOLWICH
TRUST FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
MUNICIPAL OPEN SPACE
73
EXHIBIT B-4
Balance - December 31, 2016
10,138.82
$
293,120.79
$
Increased by:
Premiums Received from Tax Sale
128,326.60
$
95,922.38
$
128,326.60
95,922.38
138,465.42
389,043.17
Decreased by:
Refund of Premium Upon Redemption
128,578.71
157,920.79
128,578.71
157,920.79
Balance - December 31, 2017
9,886.71
$
231,122.38
$
TOWNSHIP OF WOOLWICH
TRUST FUND
SCHEDULE OF CASH - COLLECTOR
FOR THE YEAR ENDED DECEMBER 31, 2017
TRUST FUND
TAX PREMIUM
TRUST FUND
TAX TITLE LIEN REDEMPTION
74
EXHIBIT B-5
Balance December 31, 2016
7,464.86
$
Increased by Receipts:
Dog License Fees
6,777.00
$
Interest
8.84
6,785.84
Subtotal
14,250.70
Decreased by Disbursements:
Disbursements to State of New Jersey
1,413.60
Disbursements for Dog License Expenses
5,038.27
6,451.87
Balance December 31, 2017
7,798.83
$
YEAR
AMOUNT
2016
7,429.00
$
2015
11,006.46
Total
18,435.46
$
TOWNSHIP OF WOOLWICH
TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2017
LICENSE FEES COLLECTED
75
EXHIBIT B-6
Balance December 31, 2016
10,138.82
$
Increased by:
Cash Receipts
128,326.60
Subtotal
138,465.42
Decreased by:
Disbursements
128,578.71
Balance December 31, 2017
9,886.71
$
TOWNSHIP OF WOOLWICH
TRUST FUND
SCHEDULE OF DEPOSITS FOR REDEMPTION OF TAX TITLE LIENS
FOR THE YEAR ENDED DECEMBER 31, 2017
76
EXHIBIT B-7
Balance December 31, 2016
293,120.79
$
Increased by:
Interest
222.38
$
Premiums Received at Tax Sale
95,700.00
95,922.38
Subtotal
389,043.17
Decreased by:
Cash Disbursements
157,920.79
Balance December 31, 2017
231,122.38
$
TOWNSHIP OF WOOLWICH
TRUST FUND
SCHEDULE OF PREMIUMS RECEIVED AT TAX SALE
FOR THE YEAR ENDED DECEMBER 31, 2017
77
EXHIBIT B-8
Balance December 31, 2016
425,280.42
$
Increased by:
Tax Levy Received
566,700.00
$
Added Taxes Due from Current Fund
7,404.01
Contribution from State - Purchase of Farmland
122,500.00
Interest
841.91
697,445.92
Subtotal
1,122,726.34
Decreased by:
Debt Service Payments Due to Current Fund
185,188.00
Expenditures for Open Space
648,427.06
833,615.06
Balance December 31, 2017
289,111.28
$
SCHEDULE OF RESERVE FOR MUNICIPAL OPEN SPACE
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
TRUST FUND
78
EXHIBIT B-9
BALANCE
BALANCE
DECEMBER 31,
INTEREST
DECEMBER 31,
2016
RECEIPTS
EARNINGS
OTHER
DISBURSEMENTS
OTHER
2017
Public Defender
3,043.88
$
2,830.00
$
2.38
$
-
$
3,125.00
$
-
$
2,751.26
$
Payroll Deductions Payable
1,936.79
4,587,548.06
-
-
4,568,881.87
-
20,602.98
Site Plan Review Escrow
679,550.92
342,701.65
1,065.01
-
285,638.68
-
737,678.90
Municipal Functions Donations
125,129.07
440,484.35
212.92
-
413,606.41
-
152,219.93
Police Overtime
6,434.51
656,365.52
58.67
-
634,776.62
-
28,082.08
UCC Trust
933,047.18
425,067.63
442.77
41,706.00
711,847.17
-
688,416.41
P.O.A.A. - Parking Fines
498.07
26.00
0.54
-
-
-
524.61
Police Forfeited Funds
3,865.26
535.45
6.00
-
-
6.42
4,400.29
Developer's Open Space
18,267.95
2,425.14
9.67
-
14,212.67
-
6,490.09
Developer's Tree Compensation
364,331.76
25.00
237.06
-
40,582.38
-
324,011.44
Snow Removal
31,936.44
42,667.92
49.37
-
54,915.53
-
19,738.20
Developer's Recreation Fees
127,641.65
-
150.13
-
13,962.90
-
113,828.88
COAH Fees
314,766.35
7,262.10
478.33
-
-
-
322,506.78
Election
250.00
13,800.00
-
-
13,800.00
-
250.00
Woolwich Recreation Trust
41,273.96
91,593.19
61.30
6.42
108,874.50
-
24,060.37
Unemployment Trust
7,979.22
-
9.46
-
5,553.42
-
2,435.26
2,659,953.01
$
6,613,332.01
$
2,783.61
$
41,712.42
$
6,869,777.15
$
6.42
$
2,447,997.48
$
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
SCHEDULE OF MISCELLANEOUS TRUST RESERVES
TRUST FUND
INCREASED BY
DECREASED BY
79
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80
GENERAL CAPITAL FUND
81
This page intentionally left blank
82
EXHIBIT C-1
Balance December 31, 2016
$18,388.88
Increased by:
Improvement Authorizations Cancelled
399,783.25
Balance December 31, 2017
$418,172.13
EXHIBIT C-2
Balance December 31, 2016
1,495,448.25
$
Increased by Receipts:
Interest on Investments
726.68
GCIA Receivable
601,577.68
Due to Grant Fund
127,500.00
Due to Municipal Open Space Fund
122,500.00
852,304.36
Subtotal
2,347,752.61
Decreased by Disbursements:
Improvement Authorizations
1,050,982.22
Bond Anticipation Notes Paid From Bond Proceeds
-
1,050,982.22
Balance December 31, 2017
1,296,770.39
$
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF FUND BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2017
83
EXHIBIT C-3
BALANCE
BALANCE
DECEMBER 31,
BOND
RECEIPTS
IMPROVEMENT
DECEMBER 31,
2016
PROCEEDS
MISCELLANEOUS
AUTHORIZATIONS
MISCELLANEOUS
TO
FROM
2017
Fund Balance
18,388.88
$
-
$
-
$
-
$
-
$
399,783.25
$
-
$
418,172.13
$
Due from Trust Other
(326,856.64)
-
122,500.00
-
-
-
-
(204,356.64)
Due to Grant Fund
-
-
127,500.00
-
-
-
-
127,500.00
Due from State of New Jersey
(207,008.35)
-
-
-
-
-
-
(207,008.35)
Due from State of New Jersey - DOT
-
-
-
-
-
-
193,000.00
(193,000.00)
Due from Gloucester County Improvement Authority
(601,577.68)
-
601,577.68
-
-
-
-
-
Capital Improvement Fund
179,483.35
-
-
-
-
-
-
179,483.35
Due to Current Fund
(114,314.58)
-
726.68
-
-
-
(113,587.90)
Reserve for Encumbrances
919,255.61
-
-
-
-
1,419,599.21
919,255.61
1,419,599.21
Reserve for Payment of Debt
161,838.65
-
-
-
-
-
-
161,838.65
Reserve for Developer's Deposits
173,465.05
-
-
-
-
-
-
173,465.05
IMPROVEMENT AUTHORIZATIONS:
ORDINANCE
NUMBER
05-29
69,800.44
-
-
-
-
-
69,800.44
-
05-30
142,078.76
-
-
-
-
142,078.76
-
05-30
36,031.76
-
-
-
-
-
36,031.76
-
07-16
19,145.50
-
-
-
-
-
19,145.50
-
08-10
332.16
-
-
-
-
-
332.16
-
08-12
129,700.52
-
-
-
-
129,700.52
-
10-13
122,650.52
-
-
12,600.00
-
-
40,265.00
69,785.52
10-25a
12,638.37
-
-
-
-
1,945.00
-
14,583.37
10-25b
13,023.06
-
-
-
-
-
-
13,023.06
11-08
505.20
-
-
-
-
-
-
505.20
11-08
321.76
-
-
-
-
-
321.76
-
11-08
1,619.29
-
-
-
-
-
1,619.29
-
12-14
753.06
-
-
-
-
-
753.06
-
12-15
12,485.00
-
-
-
-
-
-
12,485.00
12-20
18,588.00
-
-
-
-
-
-
18,588.00
13-08
2,738.82
-
-
27,500.00
-
34,599.14
7,099.14
2,738.82
14-03
29,212.45
-
-
9,212.00
-
-
6,895.30
13,105.15
14-16
17,160.50
-
-
-
-
-
-
17,160.50
15-14
2,542.82
-
-
-
-
-
-
2,542.82
15-16
45,035.27
-
-
-
-
-
-
45,035.27
16-09
76,518.00
-
-
607,753.36
-
607,753.36
-
76,518.00
16-10
539,892.70
-
-
393,916.86
-
274,958.11
371,139.77
49,794.18
17-16
-
-
-
-
-
193,000.00
-
193,000.00
17-19
-
-
-
-
-
-
994,200.00
(994,200.00)
Total
1,495,448.25
$
-
$
852,304.36
$
1,050,982.22
$
-
$
2,931,638.07
$
2,931,638.07
$
1,296,770.39
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
ANALYSIS OF CASH
AT DECEMBER 31, 2017
DISBURSEMENTS
TRANSFERS
84
EXHIBIT C-4
Balance December 31, 2016
10,257,777.93
$
Increased by:
2017 Serial Bonds Issued
6,535,000.00
Subtotal
16,792,777.93
Decreased by:
2017 Budget Appropriation to Pay General Serial Bonds
610,000.00
$
Green Trust Loan Bonds
28,888.92
638,888.92
Balance December 31, 2017
16,153,889.01
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
FOR THE YEAR ENDED DECEMBER 31, 2017
85
EXHIBIT C-5
BALANCE
BALANCE
UNEXPENDED
BOND
ORDINANCE
DECEMBER 31,
2017
DECEMBER 31,
IMPROVEMENT
ANTICIPATION
NUMBER
IMPROVEMENT DESCRIPTION
2016
AUTHORIZATIONS
REDUCTIONS
2017
AUTHORIZATION
EXPENDED
NOTES
17-19
Various Sewer Improvements
-
$
15,400,000.00
$
-
$
15,400,000.00
$
14,405,800.00
$
994,200.00
$
-
$
Total
-
$
15,400,000.00
$
-
$
15,400,000.00
$
14,405,800.00
$
994,200.00
$
-
$
Transferred to Bonds
-
$
Paid by Current Fund
-
Cancellation
-
-
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
FOR THE YEAR ENDED DECEMBER 31, 2017
BALANCE DECEMBER 31, 2017
ANALYSIS OF
86
EXHIBIT C-6
Balance December 31, 2016
179,483.35
$
Increased By:
Transfer from Current Fund Budget
-
Subtotal
179,483.35
Decreased By:
Appropriated to Finance Improvement Authorizations
-
Balance December 31, 2017
179,483.35
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
87
EXHIBIT C-7
RECLASSIFICATION
CURRENT YEAR
ORDINANCE
2017
PRIOR YEAR
ENCUMBRANCES
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
PAYABLES
EXPENDED
PAYABLE
CANCELLED
FUNDED
UNFUNDED
05-29
Acquisition of Land
8/15/2005
400,000.00
$
69,800.44
$
-
$
-
$
-
$
-
$
-
$
69,800.44
$
-
$
-
$
05-30, 06-28,
8/15/2005
07-45, 09-15
Locke Avenue Park Expansion
9/8/2009
4,250,000.00
142,078.76
-
-
-
-
-
142,078.76
-
-
05-30, 06-28,
8/15/2005
07-45, 09-15
PMC Building Construction
9/8/2009
250,000.00
36,031.76
-
-
-
-
-
36,031.76
-
-
07-16
2007 Road Program
5/21/2007
520,000.00
19,145.50
-
-
-
-
-
19,145.50
-
-
08-10
Acquisition of Public Works Equipment
6/2/2008
30,000.00
332.16
-
-
-
-
-
332.16
-
-
08-12
Acquisition of Land - Nike Base
7/7/2008
900,000.00
129,700.52
-
-
-
-
-
129,700.52
-
-
10-13
Russell Mill Road Phase 3 & 4
5/17/2010
420,000.00
122,650.52
-
-
-
12,600.00
40,265.00
-
69,785.52
-
10-25a
Various Road Improvements
11/1/2010
200,000.00
12,638.37
-
-
1,945.00
-
-
-
14,583.37
-
10-25b
Road Drainage Improvements
11/1/2010
100,000.00
13,023.06
-
-
-
-
-
-
13,023.06
-
11-8
Public Works Equipment
7/18/2011
88,113.20
505.20
-
-
-
-
-
-
505.20
-
11-8
Various Roadway Improvements - 2
7/18/2011
125,000.00
321.76
-
-
-
-
-
321.76
-
-
11-8
Various Roadway Improvements - 1
7/18/2011
177,644.00
1,619.29
-
-
-
-
-
1,619.29
-
-
12-14
Various Roadway Improvements
104,526.72
753.06
-
-
-
-
-
753.06
-
-
12-15
Various Road Improvements
266,000.00
-
-
-
-
-
-
-
-
-
12-15
Acquisition of Fire Truck
657,000.00
-
-
-
-
-
-
-
-
-
12-15
Field Drainage Improvements
45,000.00
12,485.00
-
-
-
-
-
-
12,485.00
-
12-15
Acquisition of Public Safety Equipment
40,000.00
-
-
-
-
-
-
-
-
-
12-15
Acquisition of Public Works Equipment
125,000.00
-
-
-
-
-
-
-
-
-
12-15
Acquisition of Public Safety Vehicles
81,000.00
-
-
-
-
-
-
-
-
-
12-20
Public Works Garage
324,797.71
18,588.00
-
-
-
-
-
-
18,588.00
-
13-08
Various Capital Improvements and Equipment
380,000.00
2,738.82
-
-
34,599.14
27,500.00
7,099.14
-
2,738.82
-
14-03
Public Works, Public & Fire Safety Equipment
70,000.00
29,212.45
-
-
-
9,212.00
6,895.30
-
13,105.15
-
14-16
Acquisition of Real Property
550,000.00
17,160.50
-
-
-
-
-
-
17,160.50
-
15-14
Public Works Equipment
9/21/2015
12,485.00
2,542.82
-
-
-
-
-
-
2,542.82
-
15-16
Roadway Improvements
9/21/2015
375,000.00
45,035.27
-
-
-
-
-
-
45,035.27
-
16-09
Acquisition of Transfer Development Rights
8/1/2016
2,100,000.00
76,518.00
-
-
607,753.36
607,753.36
-
-
76,518.00
-
16-10
Various Capital Improvements
8/1/2016
883,111.00
539,892.70
-
-
274,958.11
393,916.86
371,139.77
-
49,794.18
-
17-16
Various Roadway and Drainage Improvements
8/21/2017
193,000.00
-
-
193,000.00
-
-
-
-
193,000.00
-
17-19
Various Sewer Improvements
12/18/2017
15,400,000.00
-
-
15,400,000.00
-
-
994,200.00
-
-
14,405,800.00
Total
1,292,773.96
$
-
$
15,593,000.00
$
919,255.61
$
1,050,982.22
$
1,419,599.21
$
399,783.25
$
528,864.89
$
14,405,800.00
$
ORDINANCE
DECEMBER 31, 2016
DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2017
BALANCE
BALANCE
88
EXHIBIT C-8
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2016
INCREASED
DECREASED
2017
General Obligation Refunding
4/30/2015
5,260,000
12/15/2018
460,000.00
3.000%
4,485,000.00
$
-
$
445,000.00
$
4,040,000.00
$
Bonds - Series 2015
12/15/2019
460,000.00
3.000%
12/15/2020
480,000.00
3.000%
12/15/2021
505,000.00
3.000%
12/15/2022
515,000.00
3.000%
12/15/2023
525,000.00
3.000%
12/15/2024
535,000.00
3.000%
12/15/2025
560,000.00
3.000%
General Obligation Bonds - 2016
10/13/2016
$5,500,000
10/1/2018
200,000.00
3.000%
5,500,000.00
-
165,000.00
5,335,000.00
10/1/2019
205,000.00
4.000%
10/1/2020
210,000.00
4.000%
10/1/2021
215,000.00
4.000%
10/1/2022
225,000.00
4.000%
10/1/2023
230,000.00
4.000%
10/1/2024
235,000.00
4.000%
10/1/2025
240,000.00
2.000%
10/1/2026
325,000.00
2.000%
10/1/2027
325,000.00
2.250%
10/1/2028
325,000.00
2.250%
10/1/2029
325,000.00
2.250%
10/1/2030
325,000.00
2.500%
10/1/2031
325,000.00
2.500%
10/1/2032
325,000.00
2.500%
10/1/2033
325,000.00
2.750%
10/1/2034
325,000.00
3.000%
10/1/2035
325,000.00
3.000%
10/1/2036
325,000.00
3.000%
General Obligation Refunding
8/23/2017
$6,535,000
7/1/2018
340,000.00
2.000%
-
6,535,000.00
-
6,535,000.00
Bonds - Series 2017
7/1/2019
350,000.00
2.000%
7/1/2020
360,000.00
3.000%
7/1/2021
370,000.00
3.000%
7/1/2022
380,000.00
3.000%
7/1/2023
390,000.00
4.000%
7/1/2024
410,000.00
4.000%
7/1/2025
425,000.00
4.000%
7/1/2026
445,000.00
4.000%
7/1/2027
460,000.00
4.000%
7/1/2028
480,000.00
4.000%
7/1/2029
500,000.00
4.000%
7/1/2030
520,000.00
4.000%
7/1/2031
545,000.00
4.000%
7/1/2032
560,000.00
4.000%
Totals
9,985,000.00
$
6,535,000.00
$
610,000.00
$
15,910,000.00
$
Paid from Current Fund
610,000.00
$
Total
610,000.00
$
MATURITIES OF
DECEMBER 31, 2017
BONDS OUTSTANDING
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
FOR THE YEAR ENDED DECEMBER 31, 2017
89
EXHIBIT C-9
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2016
DECREASED
2017
Locke Avenue Park
1/4/2002
150,000.00
$
1/12/2018
4,264.24
2.00%
48,351.92
$
8,402.24
$
39,949.68
$
7/12/2018
4,306.88
2.00%
1/12/2019
4,349.95
2.00%
7/12/2019
4,393.45
2.00%
1/12/2020
4,437.39
2.00%
7/12/2020
4,481.76
2.00%
1/12/2021
4,526.58
2.00%
7/12/2021
4,571.86
2.00%
1/12/2022
4,617.57
2.00%
Park Expansion
4/26/2007
400,000.00
4/26/2018
10,397.24
2.00%
224,426.01
20,486.68
203,939.33
10/26/2018
10,501.22
2.00%
4/26/2019
10,606.23
2.00%
10/26/2019
10,712.29
2.00%
4/26/2020
10,819.41
2.00%
10/26/2020
10,927.61
2.00%
4/26/2021
11,036.88
2.00%
10/26/2021
11,147.25
2.00%
4/26/2022
11,258.73
2.00%
10/26/2022
11,371.31
2.00%
4/26/2023
11,485.03
2.00%
10/26/2023
11,599.88
2.00%
4/26/2024
11,715.88
2.00%
10/26/2024
11,833.03
2.00%
4/26/2025
11,951.36
2.00%
10/26/2025
12,070.88
2.00%
4/26/2026
12,191.60
2.00%
10/26/2026
12,313.50
2.00%
Total
272,777.93
$
28,888.92
$
243,889.01
$
MATURITIES OF
DECEMBER 31, 2017
BONDS OUTSTANDING
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF GREEN ACRES TRUST LOANS
FOR THE YEAR ENDED DECEMBER 31, 2017
90
EXHIBIT C-10
AMOUNT OF
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2016
DECREASED
2017
Municipal Complex Project
8/22/2007
11,225,000.00
$
8,730,000.00
$
8,730,000.00
$
-
$
Total
8,730,000.00
$
8,730,000.00
$
-
$
Paid by Current Fund
380,000.00
$
Paid by Bond Refunding
8,350,000.00
8,730,000.00
$
DECEMBER 31, 2017
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF OBLIGATIONS UNDER CAPITAL LEASE
FOR THE YEAR ENDED DECEMBER 31, 2017
MATURITIES OF
BONDS OUTSTANDING
91
EXHIBIT C-11
BALANCE
BALANCE
ORDINANCE
IMPROVEMENT
DECEMBER 31,
2017
2017
DECEMBER 31,
NUMBER
DESCRIPTION
2016
AUTHORIZATIONS
REDUCTIONS
CANCELLED
2017
17-19
Various Sewer Improvements
-
$
15,400,000.00
$
-
$
-
$
15,400,000.00
$
Total
-
$
15,400,000.00
$
-
$
-
$
15,400,000.00
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
AT DECEMBER 31, 2017
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
92
EXHIBIT C-12
Balance December 31, 2016
207,008.35
$
Increased By:
Current Year Grant Awards
193,000.00
Balance December 31, 2017
400,008.35
$
State Aid Receivable - Prior Years - unknown
207,008.35
$
NJDOT - Russell Mill Road/Cloverdale Road Improvements - Ord 2017-16
193,000.00
Total
400,008.35
$
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL GRANTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2017
Analysis of Grants Receivable
93
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94
TOWNSHIP OF WOOLWICH
PART II
SCHEDULE OF FINANCIAL STATEMENT FINDINGS -
GOVERNMENT AUDITING STANDARDS
FOR THE YEAR ENDED DECEMBER 31, 2017
95
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96
TOWNSHIP OF WOOLWICH
SCHEDULE OF FINANCIAL STATEMENT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2017
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance
related to the basic financial statements that are required to be reported in accordance with Government
Auditing Standards and with audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
Finding 2017-001:
Criteria or specific requirement:
That an accurate general ledger be maintained for all funds.
Condition:
Closing and adjusting entries are not being properly posted in the Township’s general ledger accounting
system for the General Capital Fund.
Cause:
Lack of resources in the finance office.
Effect or potential effect:
Ending balances in the client’s general ledger for the General Capital Fund do not accurately reflect
activity for the year.
Recommendation:
That the client posts all adjusting and closing entries to the general ledger at year end for the General
Capital Fund.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective
action plan.
Finding 2017-002:
Criteria or specific requirement:
That the Township have written standard operating procedures in place.
Condition:
In review of the Township’s internal control procedures, our audit revealed that no written Standard
Operating Procedures manual is in place.
Cause:
Lack of resources.
Effect or potential effect:
Internal control procedures not being effectively communicated to personnel.
97
TOWNSHIP OF WOOLWICH
SCHEDULE OF FINANCIAL STATEMENT FINDINGS (continued)
FOR THE YEAR ENDED DECEMBER 31, 2017
Finding 2017-002 (continued):
Recommendation:
The Township develop a Standard Operating Procedures manual and document the controls in place that
all employees should follow and the responsibilities of each position in the Township.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective
action plan.
Finding 2017-003:
Criteria or specific requirement:
That Trust Funds be used for purposes as approved by the Budget Rider filed with the State of New
Jersey Department of Community Affairs.
Condition:
During our audit of the Township’s Municipal Functions Donation Trust Fund, it was determined that the
Trust Fund is being used for purposes other than those approved by the Budget Rider filed with the State
of New Jersey Department of Community Affairs.
Cause:
General ledger incorrectly setup for this fund.
Effect or potential effect:
Activity posted to this Trust Fund does not accurately reflect the approved activity.
Recommendation:
That the Township utilizes the Municipal Functions Donations Trust Fund only for activities approved
under the Budget Rider.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective
action plan.
Finding 2017-004:
Criteria or specific requirement:
That the Township actively pursue all receivables due to the Township.
Condition:
During our audit of the State and Federal Grant Fund and the General Capital Fund, it was noted that
there are several grant receivables that have been outstanding for several years.
98
TOWNSHIP OF WOOLWICH
SCHEDULE OF FINANCIAL STATEMENT FINDINGS (continued)
FOR THE YEAR ENDED DECEMBER 31, 2017
Finding 2017-004 (continued):
Cause:
Not actively pursuing old grant receivables.
Effect or potential effect:
Inability to collect receivables due to the Township.
Recommendation:
That the Township actively pursue collection of all outstanding receivables.
View of responsible official:
The responsible official agrees with this finding and will address the matter as part of their corrective
action plan.
99
TOWNSHIP OF WOOLWICH
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2017
This section identifies the status of prior year findings related to the financial statements, federal awards
and state financial assistance that are required to be reported in accordance with Government Auditing
Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance), and
New Jersey OMB’s Circular 15-08.
Financial Statement Findings
Finding No. 2016-001
Condition:
Tax adjustments and other closing entries are not being properly posted in the Township’s General
Ledger accounting system for the Current Fund and General Capital Fund.
Current Status:
This finding has been partially corrected. See Finding 2017-001.
Finding No. 2016-002
Condition:
In review of the Township’s internal control procedures, our audit revealed that no written Standard
Operating Procedures manual is in place.
Current Status:
This finding has not been corrected. See Finding 2017-002.
Finding No. 2016-003
Condition:
During our audit of the Township’s Municipal Functions Donation Trust Fund, it was determined that the
Trust Fund is being used for purposes other than those approved by the Budget Rider filed with the State
of New Jersey Department of Community Affairs.
Current Status:
This finding has not been corrected. See Finding 2017-003.
FEDERAL AWARDS
N/A – No Federal Single Audit in prior year.
STATE FINANCIAL ASSISTANCE
N/A – No State Single Audit in prior year.
100
TOWNSHIP OF WOOLWICH
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
101
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102
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2017:
Name
Title
Alan Schwager
Mayor
Frank Rizzi
Deputy Mayor
John A. Carleton
Committee Member
Jordan Schlump
Committee Member
Dan Battisti
Committee Member
Jane DiBella
Township Administrator/Clerk
William Pine
Chief Financial Officer
Kim Jaworski
Tax Collector
James Sabetta
Construction Code Official
Angela Kalnas
Court Administrator
Maria Tiver
Deputy Court Administrator
William Golden
Court Magistrate
Mark Shoemaker, Esq.
Solicitor
The Alamio Group
Engineer
Note: All officials and employees are covered by the Joint Insurance Fund with
a bond in the amount of $1,000,000 each.
103
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104
Honorable Mayor and Members
of the Township Committee
Township of Woolwich
County of Gloucester
Woolwich, New Jersey
In accordance with requirements prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey, the following are the General Comments and
Recommendations for the year ended December 31, 2017.
GENERAL COMMENTS:
Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)
N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or
hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of
public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the
Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as
is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by
contract or agreement.
The bid threshold in accordance with N.J.S.A. 40A:11-4 was $40,000 for the year ended December 31, 2017.
It is pointed out that the governing body of the municipality has the responsibility of determining whether
the expenditures in any category will exceed the statutory minimum within the fiscal year. Where
question arises as to whether any contract or agreement might result in violation of the statute, the
solicitor's opinion should be sought before a commitment is made.
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.
Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid
threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” other
than those where bids had been previously sought by public advertisement or where a resolution had been
previously adopted under the provisions of N.J.S.A.40A:11-6.
105
Holman | Frenia
Allison, P.C.
HF
Certified Public Accountants & Consultants
680 Hooper Avenue, Bldg B, Toms River, NJ 08753 • Tel: 732.797.1333
618 Stokes Road, Medford, NJ 08055 • Tel: 609.953.0612
912 Highway 33, Suite 2, Freehold, NJ 07728 • Tel: 732.409.0800
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
www.hfacpas.com
Collection of Interest on Delinquent Taxes and Assessments
N.J.S.54:4-67, provides the method for authorizing interest and the maximum rates to be charged for the
nonpayment of taxes or assessments on or before the date when they would become delinquent.
The governing body on January 2, 2017 adopted the following resolution authorizing interest to be
charged on delinquent taxes:
NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non-
payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first
$1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of
$1,500.00; and
BE IT FURTHER RESOLVED, by the Township Committee of the Township of Woolwich, that
the Tax Collector shall allow that no interest will be charged on payments received and made by
the tenth calendar day following the date upon which the same became payable; and
BE IT FURTHER RESOLVED, by the Township Committee of the Township of Woolwich, that
the Tax Collector shall charge, in addition to the interest for delinquent taxes, as noted above, a
penalty of six (6%) percent of the amount of the delinquency in taxes in excess of $10,000.00 to a
taxpayer who fails to pay the delinquency prior to the end of the calendar year.
It appears from an examination of the Collector's record that interest was collected in accordance with the
foregoing resolution.
OTHER COMMENTS (FINDINGS):
*Finding 2017-01 (Finding 2017-001 in the Schedule of Financial Statement Findings section) - Closing
and adjusting entries are not being properly posted in the Township’s general ledger accounting system
for the General Capital Fund.
*Finding 2017-02 (Finding 2017-002 in the Schedule of Financial Statement Findings section) - In
review of the Township’s internal control procedures, our audit revealed that no written Standard
Operating Procedures manual is in place.
*Finding 2017-03 (Finding 2017-003 in the Schedule of Findings and Recommendations section) -
During our audit of the Township’s Municipal Functions Donation Trust Fund, it was determined that the
Trust Fund is being used for purposes other than those approved by the Budget Rider filed with the State
of New Jersey Department of Community Affairs.
Finding 2017-04 (Finding 2017-004 in the Schedule of Financial Statement Findings section) - During
our audit of the State and Federal Grant Fund and the General Capital Fund, it was noted that there are
several grant receivables that have been outstanding for several years.
*Denotes Prior Year Finding.
106
RECOMMENDATIONS:
Finding 2017-01 - That the Township posts all adjusting and closing entries to the general ledger at year
end for the General Capital Fund.
Finding 2017-02 - The Township develop a Standard Operating Procedures manual and document the
controls in place that all employees should follow and the responsibilities of each position in the
Township.
Finding 2017-03 - That the Township utilizes the Municipal Functions Donations Trust Fund only for
activities approved under the Budget Rider.
Finding 2017-04 - That the Township actively pursue collection of all outstanding receivables.
107
Appreciation
We express our appreciation for the assistance and courtesies extended to the members of the audit team.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P. C.
Michael Holt
Certified Public Accountant
Registered Municipal Accountant
RMA No. 473
Medford, New Jersey
June 21, 2018
108
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