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Executive Summary
The Township of Woolwich's audit report for the year ended December 31, 2019, provides an overview of the township's financial position and operations. The audit includes statements of assets, liabilities, reserves, and fund balances for various funds, including the Current Fund, Trust Funds, and General Capital Fund. It also covers statements of revenues, expenditures, and changes in fund balance on a regulatory basis, as well as notes to the financial statements, in accordance with the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
While the report expresses an adverse opinion on accounting principles generally accepted in the United States of America, it gives an unmodified opinion on the regulatory basis of accounting used by the Township, except for the general fixed asset group of accounts, which is qualified due to the lack of a maintained record of general fixed assets. The report includes a Schedule of Findings and Recommendations, addressing deficiencies in internal control and compliance. The audit was conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. The auditor’s report is dated December 11, 2020.
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Document Text
--- Document: Audit - 2019 Document ---
TOWNSHIP OF WOOLWICH
COUNTY OF GLOUCESTER
REPORT OF AUDIT
FOR THE YEAR ENDED DECEMBER 31, 2019
18700
TOWNSHIP OF WOOLWICH
TABLE OF CONTENTS
Exhibit No.
Page No.
PART 1
Independent Auditor's Report
2
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
In Accordance With Government Auditing Standards
5
CURRENT FUND
A
Statements of Assets, Liabilities, Reserves and Fund Balances--
Regulatory Basis
7
A-1
Statements of Operations and Changes in Fund Balance--
Regulatory Basis
9
A-2
Statement of Revenues--Regulatory Basis
11
A-3
Statement of Expenditures--Regulatory Basis
14
TRUST FUND
B
Statements of Assets, Liabilities, Reserves and Fund Balance--
Regulatory Basis
20
B-1
Municipal Open Space Fund -- Statement of Revenues--Regulatory Basis
22
B-2
Municipal Open Space Fund -- Statement of Expenditures--Regulatory Basis
23
GENERAL CAPITAL FUND
C
Statements of Assets, Liabilities, Reserves and Fund Balances--
Regulatory Basis
24
C-1
Statement of Fund Balance -- Regulatory Basis
25
Notes to Financial Statements
26
SUPPLEMENTAL EXHIBITS
CURRENT FUND
SA-1
62
SA-2
63
SA-3
64
SA-4
65
SA-5
66
SA-6
67
SA-7
69
SA-8
70
SA-9
70
SA-10
71
SA-11
71
SA-12
72
SA-13
Statement of Current Cash--Chief Financial Officer
Statement of Current Cash--Tax Collector
Statement of Taxes Receivable and Analysis of Property Tax Levy
Statement of Tax Title Liens
Statement of Revenue Accounts Receivable
Statement of Appropriation Reserves
Statement of Due State of New Jersey--Veterans' and Senior Citizens'
Deductions
Statement of Prepaid Taxes
Statement of Tax Overpayments
Statement of County Taxes Payable
Statement of Due to County for Added and Omitted Taxes
Statement of Local School District Tax
Statement of Regional High School District Tax
72
i
18700
TOWNSHIP OF WOOLWICH
TABLE OF CONTENTS (CONT'D)
Exhibit No.
Page No.
CURRENT FUND (CONT’D)
SA-14
Statement of Municipal Open Space Tax
73
SA-15
Statement of Amount Due to Municipal Open Space for Added and
Omitted Taxes
73
SA-16
Federal and State Grant Fund--Statement of Due Current Fund
74
SA-17
Federal and State Grant Fund--Statement of Federal and
State Grants Receivable
75
SA-18
Federal and State Grant Fund--Statement of Reserve for Federal
and State Grants--Unappropriated
76
SA-19
Federal and State Grant Fund--Statement of Reserve for Federal
and State Grants--Appropriated
77
TRUST FUND
SB-1
Statement of Trust Cash--Chief Financial Officer
79
SB-2
Statement of Trust Cash--Tax Collector
80
SB-3
Statement of Amount Due to Current Fund--Animal Control Fund
81
SB-4
Statement of Amount Due to State of New Jersey--Department of Health
81
SB-5
Statement of Reserve for Animal Control Fund
82
SB-6
Statement of Due Current Fund--Municipal Open Space Fund
83
SB-7
Statement of Due General Capital Fund--Municipal Open Space Fund
83
SB-8
Statement of Appropriation Reserves--Municipal Open Space Fund
84
SB-9
Statement of Reserve for Future Use--Municipal Open Space Fund
85
SB-10
Statement of Due Current Fund--Trust Other Fund
86
SB-11
Statement of Due to State--Uniform Construction Code Training Fees
87
SB-12
Statement of Miscellaneous Trust Reserves
88
SB-13
Statement of Reserve for Uniform Construction Code
89
GENERAL CAPITAL FUND
SC-1
Statement of General Capital Cash--Chief Financial Officer
91
SC-2
Analysis of General Capital Cash
92
SC-3
Statement of Deferred Charges to Future Taxation--Funded
93
SC-4
Statement of Deferred Charges to Future Taxation--Unfunded
94
SC-5
Statement of Due Current Fund
95
SC-6
Statement of State Aid Receivable
96
SC-7
Statement of Capital Improvement Fund
97
SC-8
Statement of Due Municipal Open Space Trust Fund
98
SC-9
Statement of Improvement Authorizations
99
SC-10
Statement of General Serial Bonds
100
SC-11
Statement of Green Trust Loan Payable
102
SC-12
Statement of Bonds Anticipation Notes
103
SC-13
Statement of Bonds and Notes Authorized But Not Issued
104
ii
18700
TOWNSHIP OF WOOLWICH
TABLE OF CONTENTS (CONT'D)
Exhibit No.
Page No.
PART 2
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
Schedule of Findings and Questioned Costs
106
Summary Schedule of Prior Year Audit Findings and Recommendations
as Prepared by Management
108
OFFICIALS IN OFFICE AND SURETY BONDS
110
APPRECIATION
111
iii
TOWNSHIP OF WOOLWICH
PART 1
REPORT OF AUDIT OF FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2019
-1-
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the Township Committee
Township of Woolwich
Woolwich, New Jersey 08085
Report on the Financial Statements
We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory basis
of the various funds of the Township of Woolwich, in the County of Gloucester, State of New Jersey, as of December
31, 2019, and the related statements of operations and changes in fund balance - regulatory basis for the year then
ended, and the related statement of revenues - regulatory basis and statement of expenditures - regulatory basis
for the year ended December 31, 2019, 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 the financial reporting provisions of the Division of Local Government Services, Department of Community
Affairs, State of New Jersey; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express 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; 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 as 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 entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
unmodified and qualified audit opinions.
-2-
6 North Broad Street I Suite 201 I Woodbury, NJ 08096 I P 856.853-0440 IF 856.845-4128 I www.bowmanllp.com
18700
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America
As described in note 1 to the financial statements, the financial statements are prepared by the Township 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 Accounting
Principles Generally Accepted in the United States of America” 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 of Woolwich, in the County of Gloucester, State of New Jersey, as
of December 31, 2019, or the results of its operations and changes in fund balance for the year then ended.
Basis for Qualified Opinion on General Fixed Asset Group of Accounts - Regulatory Basis
The financial statements referred to above do not included the general fixed asset group of accounts - regulatory
basis, as required by N.J.A.C. 5:30-5.6, because a record of general fixed assets was not maintained by the
Township. The amount that should be recorded in the general fixed asset group of accounts is not known.
Qualified Opinion on General Fixed Asset Group of Accounts - Regulatory Basis
In our opinion, as a result of the effects of the matter described in the “Basis for Qualified Opinion on General Fixed
Asset Group of Accounts - Regulatory Basis” paragraph, the general fixed asset group of accounts - regulatory
basis is not presented fairly, in all material respects, for the Township of Woolwich, in the County of Gloucester,
State of New Jersey, for the year ended December 31, 2019, 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.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to previously, except for the general fixed asset group of accounts
- regulatory basis, present fairly, in all material respects, the assets, liabilities, reserves and fund balance - regulatory
basis of the various funds of the Township of Woolwich, in the County of Gloucester, State of New Jersey, as of
December 31, 2019, and the results of its operations and changes in fund balance - regulatory basis of such funds
for the year then ended, and the revenues - regulatory basis and expenditures - regulatory basis of the various
funds, for the year ended December 31, 2019, 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.
Prior Period Financial Statements
The financial statements of the Township of Woolwich, County of Gloucester, as of December 31, 2018, were
audited by other auditors whose report dated August 26, 2019, expressed an adverse opinion under accounting
principles generally accepted in the United States of America and an unmodified opinion under the regulatory basis
of accounting.
-3-
18700
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 statements and schedules presented for the various
funds, as listed in the table of contents, 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 statements and schedules presented for the various funds are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the supplemental statements are fairly stated,
in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2020 on
our consideration of the Township of Woolwich, in the County of Gloucester, State of New Jersey, internal control
over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the Township of Woolwich’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Township of Woolwich’s internal control over financial reporting and compliance.
Woodbury, New Jersey
December 11, 2020
Respectfully submitted,
BOWMAN & COMPANY LLP
Certified Public Accountants
& Consultants
Michael J. Welding
Certified Public Accountant
Registered Municipal Accountant
-4-
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the Township Committee
Township of Woolwich
Woolwich, New Jersey 08085
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 the audit requirements as prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey, the financial statements prepared on a regulatory
basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey, of the Township of Woolwich, in the County of Gloucester, State of New Jersey, as of and for
the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise
the Township’s basic financial statements, and have issued our report thereon dated December 11, 2020. That
report indicated that the Township of Woolwich's financial statements were not prepared in accordance with
accounting principles generally accepted in the United States of America, but were prepared on a regulatory basis
of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey. In our report, our opinion was qualified because the financial statements did not include the general
fixed asset group of accounts - regulatory basis as required by New Jersey Administrative Code.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Township of Woolwich'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 of Woolwich's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Township of Woolwich'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 have not been identified.
We did identify certain deficiencies in internal control, as described in the accompanying Schedule of Findings and
Recommendations, as Finding No. 2019-001 and Finding No. 2019-002 that we consider to be material
weaknesses.
-5-
6 North Broad Street I Suite 201 I Woodbury, NJ 08096 I P 856.853-0440 IF 856.845-4128 I www.bowmanllp.com
18700
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Township of Woolwich'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 Findings and
Recommendations as Finding No. 2019-001 and Finding No. 2019-002.
The 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 Findings and Recommendations. 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 entity’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,
BOWMAN & COMPANY LLP
Certified Public Accountants
& Consultants
Michael J. Welding
Certified Public Accountant
Registered Municipal Accountant
Woodbury, New Jersey
December 11, 2020
-6-
18700
Exhibit A
Ref.
2019
2018
Assets:
Regular Fund:
Cash:
Chief Financial Officer
SA-1
$
6,380,697.06
$
6,636,149.42
Change Fund
A
650.00
650.00
6,381,347.06
6,636,799.42
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes Receivable
SA-3
553,998.14
585,120.13
Tax Title Liens Receivable
SA-4
242,379.56
219,601.12
Revenue Accounts Receivable
SA-5
11,852.78
8,980.76
Prepaid Regional School District Taxes
SA-13
-
100.40
Due from Dog License Fund
SB-3
94.24
94.24
Due from Municipal Open Space Fund
SB-6
4,132.38
335,042.50
Due from Trust Other Funds
SB-10
83,661.28
81,029.88
Due from General Capital Fund
SC-5
64,469.58
-
960,587.96
1,229,969.03
7,341,935.02
7,866,768.45
Federal and State Grant Fund:
Due from Current Fund
SA-16
274,954.30
74,644.57
Due from General Capital Fund
C
127,500.00
127,500.00
Grants Receivable
SA-17
122,292.45
308,946.70
524,746.75
511,091.27
$
7,866,681.77
$
8,377,859.72
(Continued)
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statements of Assets, Liabilities, Reserves, and Fund Balances - Regulatory Basis
As of December 31, 2019 and 2018
-7-
18700
Exhibit A
Ref.
2019
2018
Liabilities, Reserves and Fund Balance:
Regular Fund:
Appropriation Reserves
A-3,SA-6
$
439,626.81
$
515,053.38
Reserve for Encumbrances
A-3,SA-6
117,523.88
248,932.63
Accounts Payable
SA-6, SA-1
40,150.53
15,852.27
Accounts Payable - Tax Overpayments
SA-9
13,040.72
-
Due to State of New Jersey:
Senior Citizen's and Veteran's Deductions
SA-7
11,954.30
12,329.30
Marriage License Fees
SA-1
165.00
-
Prepaid Taxes
SA-8
274,340.77
351,870.05
Tax Overpayments
SA-9
19,844.28
48,617.03
Due County for Added and Omitted Taxes
SA-11
113,221.02
99,234.38
Local District School Taxes Payable
SA-12
2,602,401.48
2,776,955.47
Due to Federal and State Grant Fund
SA-16
274,954.30
74,644.57
Due to General Capital Fund
SC-5
-
77,190.13
Reserve for Master Plan
A
66,418.82
66,418.82
3,973,641.91
4,287,098.03
Reserves for Receivables
A
960,587.96
1,229,969.03
Fund Balance
A-1
2,407,705.15
2,349,701.39
7,341,935.02
7,866,768.45
Federal and State Grant Fund:
Encumbrances Payable
SA-19
4,505.00
12,395.45
Unappropriated Reserves
SA-18
79,275.40
13,582.41
Appropriated Reserves
SA-19
440,966.35
485,113.41
524,746.75
511,091.27
$
7,866,681.77
$
8,377,859.72
The accompanying Notes to Financial Statements are an integral part of this statement.
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statements of Assets, Liabilities, Reserves, and Fund Balances - Regulatory Basis
As of December 31, 2019 and 2018
-8-
Exhibit A-1
2019
2018
Revenue and Other Income Realized:
Fund Balance Utilized
$
1,870,000.00
$
2,288,661.70
Miscellaneous Revenues Anticipated
2,049,498.51
1,657,391.80
Receipts from Delinquent Taxes
526,722.49
390,236.89
Receipts from Current Taxes
44,059,702.65
42,902,055.37
Nonbudget Revenues
643,415.06
612,657.63
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
229,079.14
346,969.99
Interfund Returned
910.12
-
Prepaid Regional School Tax Liquidated
100.40
-
Tax Overpayments Cancelled
750.58
-
49,380,178.95
48,197,973.38
Expenditures:
Budget and Emergency Appropriations:
Appropriations Within "CAPS"
Operations:
Salaries and Wages
2,543,290.90
2,425,627.60
Other Expenses
3,771,981.45
3,546,742.42
Deferred Charges and Statutory Expenditures
905,540.00
796,110.44
Appropriations Excluded from "CAPS"
Operations:
Salaries and Wages
719,878.54
651,841.71
Other Expenses
38,857.38
86,194.89
Capital Improvements
100,000.00
-
Municipal Debt Service
1,531,400.76
1,543,100.74
Deferred Charges
-
125,000.00
County Taxes
9,807,710.03
9,389,980.53
Due County for Added and Omitted Taxes
113,422.61
-
Local District School Tax
16,025,811.00
16,374,919.00
Regional High School Tax
11,185,421.42
10,729,506.00
Municipal Open Space Tax
588,124.10
575,171.00
Due Municipal Open Space for Added and Omitted Taxes
6,786.02
6,078.61
Interfund Created
67,100.98
122,495.09
Senior and Veteran Deductions Disallowed
875.00
2,500.00
Refund Revenue
3,475.00
-
State Grant Receivable Adjustment
42,500.00
-
47,452,175.19
46,375,268.03
Excess in Revenues
1,928,003.76
1,822,705.35
(Continued)
For the Years Ended December 31, 2019 and 2018
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statements of Operations and Changes in Fund Balance - Regulatory Basis
-9-
Exhibit A-1
2019
2018
For the Years Ended December 31, 2019 and 2018
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statements of Operations and Changes in Fund Balance - Regulatory Basis
Regulatory Excess to Fund Balance
$
1,928,003.76
$
1,822,705.35
Fund Balance January 1
2,349,701.39
2,815,657.74
Total
4,277,705.15
4,638,363.09
Decreased by:
Utilization as Anticipated Revenue
1,870,000.00
2,288,661.70
Fund Balance December 31
$
2,407,705.15
$
2,349,701.39
The accompanying Notes to Financial Statements are an integral part of this statement.
-10-
18700
Exhibit A-2
Anticipated
Budget
Realized
Excess
Fund Balance Anticipated
$
1,870,000.00
$
1,870,000.00
Miscellaneous Revenues:
Fines and Costs:
Municipal Court
136,000.00
169,645.42
$
33,645.42
Interest and Costs on Taxes
97,000.00
111,280.52
14,280.52
Energy Receipts Tax (P.L. 1997, Chapters 162 & 167)
414,809.00
414,809.00
Garden State Trust Fund
5,939.00
5,939.00
Kingsway Regional High School District Interlocal
55,000.00
57,000.00
2,000.00
Borough of Swedesboro Interlocal:
Recreation Other Expenses
12,500.00
8,000.00
(4,500.00)
Police Coverage and Protection
664,878.54
664,878.54
Reserve to Pay Debt Service
88,588.65
88,588.65
Debt Service Contributions from Municipal Open Space Fund
175,000.00
175,000.00
Interfund Receivable - Open Space Fund
350,000.00
330,000.00
(20,000.00)
Public and Private Revenues Offset With Appropriations:
Recycling Tonnage Grant
13,582.41
13,582.41
Municipal Alliance
8,000.00
8,000.00
Body Armor Grant
2,774.97
2,774.97
2,024,072.57
2,049,498.51
25,425.94
Receipts from Delinquent Taxes
500,000.00
526,722.49
26,722.49
Subtotal General Revenues
4,394,072.57
4,446,221.00
52,148.43
Amount to be Raised by Taxes for Support to Municipal
Budget - Local Tax for Municipal Purposes
6,529,828.27
7,645,379.28
1,115,551.01
Budget Totals
10,923,900.84
12,091,600.28
1,167,699.44
Nonbudget Revenues
643,415.06
643,415.06
$
10,923,900.84
$
12,735,015.34
$
1,811,114.50
(Continued)
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Revenues - Regulatory Basis
For the Year Ended December 31, 2019
-11-
Exhibit A-2
Analysis of Realized Revenue:
Allocation of Current Tax Collections:
Revenue from Collections
$
44,059,702.65
Allocated to:
School, County and Open Space Taxes
37,727,275.18
Balance for Support of Municipal Budget Revenues
6,332,427.47
Add:
Appropriation: "Reserve for Uncollected Taxes"
1,312,951.81
Amount for Support of Municipal Budget Appropriations
$
7,645,379.28
Receipts from Delinquent Taxes:
Delinquent Tax Collections
$
503,910.11
Tax Title Lien Collections
22,812.38
Delinquent Tax Collections
$
526,722.49
(Continued)
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Revenues - Regulatory Basis
-12-
Exhibit A-2
Analysis of Realized Revenue (Continued):
Analysis of Non-Budget Revenue
Appropriation Refunds
$
10,493.67
Fees & Permits
80,256.33
Cable Franchise Fees
30,546.55
Community Garden
1,185.00
Interlocal Service Agreement - South Harrison Township
1,750.00
Interlocal Service Agreement - South Harrison Township Police
157,312.79
Interlocal Service Agreement - Swedesboro-Woolwich School District
63,310.31
Interest Earned - Treasurer
148,160.85
Junk Yard
1,639.65
Licenses - Alcoholic
6,000.00
Licenses - Other
200.00
Municipal Building Rentals
12,862.50
PILOT - The Oaks
44,112.74
PILOT - Eagle View
66,024.88
Prior Year Appropriation Refunds
1,210.00
Senior Citizen & Veteran Administrative Fee
1,007.50
Miscellaneous - Treasurer
17,342.29
$
643,415.06
Cash - Chief Financial Officer
$
638,736.32
Interfunds
4,678.74
$
643,415.06
The accompanying Notes to Financial Statements are an integral part of this statement.
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Revenues - Regulatory Basis
-13-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
OPERATIONS WITHIN "CAPS"
Department of Administration and Finance:
General Administration
Salaries and Wages
$
20,000.00
$
20,000.00
$
19,999.98
$
0.02
Other Expenses
4,500.00
4,500.00
3,590.47
$
94.04
815.49
Mayor and Township Committee
Salaries and Wages
30,500.00
30,500.00
30,500.00
Other Expenses
3,500.00
3,500.00
3,491.79
8.21
Municipal Clerk:
Salaries and Wages
118,366.81
118,366.81
117,154.44
1,212.37
Other Expenses
17,350.00
19,350.00
18,869.41
253.68
226.91
Financial Administration:
Salaries and Wages
153,000.00
117,700.00
111,015.33
6,684.67
Other Expenses
54,000.00
54,000.00
43,682.25
1,357.53
8,960.22
Audit Services:
Other Expenses
50,000.00
50,000.00
50,000.00
Revenue Administration:
Salaries and Wages
57,222.00
57,222.00
57,222.00
Other Expenses
8,250.00
8,250.00
8,246.33
3.67
Legal Services and Costs:
Other Expenses
250,000.00
250,000.00
178,130.44
54,999.81
16,869.75
Engineering Services and Costs:
Other Expenses
35,000.00
37,500.00
33,417.14
4,082.86
Economic Development
Other Expenses
10,000.00
10,000.00
2,313.75
5,860.00
1,826.25
Planning Board
Salaries and Wages
34,170.00
34,170.00
34,170.00
Miscellaneous Other Expenses
57,500.00
73,500.00
70,594.58
94.64
2,810.78
Zoning Board of Adjustment:
Salaries and Wages
39,000.00
49,000.00
47,950.29
1,049.71
Other Expenses
500.00
500.00
20.49
479.51
(Continued)
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
-14-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
OPERATIONS WITHIN "CAPS" (CONT'D)
Department of Administration and Finance (Cont'd):
Office of Community Development
Salaries and Wages
$
81,937.56
$
81,937.56
$
81,937.48
$
0.08
Other Expenses
1,000.00
1,000.00
992.13
7.87
Insurance
General Liability
128,982.00
129,132.00
129,132.00
Workers Compensation
224,573.00
224,573.00
224,561.00
12.00
Employee Group Health
675,000.00
655,000.00
642,135.43
$
1,790.00
11,074.57
Health Benefits Waiver
7,500.00
-
Employee Health Benefits - Optional Cash Payment
85,000.00
70,150.00
40,195.09
29,954.91
Public Safety Functions:
Police
Salaries and Wages
1,630,500.00
1,677,500.00
1,672,574.29
4,925.71
Other Expenses
111,747.09
118,247.09
96,157.14
20,184.86
1,905.09
Office of Emergency Management
Salaries and Wages
5,000.00
5,000.00
5,000.00
Other Expenses
2,500.00
1,500.00
989.25
510.75
Aid to Volunteer Fire Company
Other Expenses
91,388.00
91,388.00
87,557.21
2,790.79
1,040.00
Municipal Prosecutor
Salaries and Wages
18,955.17
20,205.17
20,162.96
42.21
Department of Public Works:
Streets and Roads Maintenance:
Other Expenses
53,500.00
48,500.00
33,808.19
3,361.70
11,330.11
Snow Removal
Salaries and Wages
2,500.00
2,500.00
-
2,500.00
Other Expenses
2,500.00
2,500.00
2,204.60
198.20
97.20
Solid Waste Collection
Other Expenses
706,483.80
678,983.80
553,289.59
2,310.00
123,384.21
(Continued)
-15-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
OPERATIONS WITHIN "CAPS" (CONT'D)
Department of Public Works (Cont'd):
Public Buildings and Grounds
Salaries and Wages
$
279,297.92
$
279,297.92
$
279,297.92
Other Expenses
82,550.00
82,550.00
56,039.07
$
10,000.92 $
16,510.01
Vehicle Maintenance
Other Expenses
41,000.00
51,000.00
28,757.51
7,358.39
14,884.10
Health & Human Services Functions:
Public Health Services
Salaries and Wages
7,650.00
7,650.00
7,649.99
0.01
Other Expenses
300.00
300.00
105.00
195.00
Environmental Committee
Other Expenses
3,000.00
3,000.00
2,511.38
350.00
138.62
Park & Recreation Functions:
Recreation Services and Programs:
Salaries and Wages
10,000.00
10,000.00
10,000.00
Other Expenses
9,000.00
9,000.00
9,000.00
Maintenance of Parks
Other Expenses
61,500.00
61,500.00
48,762.75
4,366.16
8,371.09
Other Common Operating Functions:
Celebration of Public Events
Other Expenses
1,500.00
1,500.00
1,326.49
173.51
Utilities:
Gasoline
102,000.00
102,000.00
90,824.58
11,175.42
Electricity
142,000.00
137,000.00
123,987.57
13,012.43
Telephone
30,000.00
28,500.00
24,490.05
4,009.95
Street Lighting
64,000.00
61,500.00
52,403.40
9,096.60
Water/Fire Hydrant Service
110,000.00
107,000.00
79,009.01
523.84
27,467.15
Heating
10,500.00
10,500.00
7,006.12
3,493.88
Cable TV & Internet
4,500.00
4,500.00
4,252.68
247.32
(Continued)
-16-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
OPERATIONS WITHIN "CAPS" (CONT'D)
Landfill/Solidwaste Disposal Costs
Other Expenses
$
375,000.00
$
377,250.00
$
304,316.01
$
72,933.99
Recycling
Other Expenses
75,000.00
100,000.00
99,558.55
441.45
Salary and Wage Adjustment Account
Salaries and Wages
7,500.00
3,000.00
2,470.77
529.23
Municipal Court:
Salaries and Wages
106,579.00
101,579.00
101,252.77
326.23
Other Expenses
20,870.00
20,870.00
13,009.33
$
1,530.32
6,330.35
Public Defender
Salaries and Wages
9,600.00
9,600.00
7,400.00
2,200.00
Total Operations Within "CAPS"
6,325,272.35
6,315,272.35
5,774,496.00
117,424.88
423,351.47
Detail:
Salaries and Wages
2,611,778.46
2,543,290.90
2,605,758.22
-
19,470.16
Other Expenses
3,713,493.89
3,771,981.45
3,168,737.78
117,424.88
403,881.31
DEFERRED CHARGES AND STATUTORY
EXPENDITURES - MUNICIPAL WITHIN "CAPS":
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
173,846.00
173,846.00
173,836.00
10.00
Social Security System (O.A.S.I.)
235,000.00
245,000.00
234,183.42
10,816.58
Defined Contributions Retirement Program
750.00
750.00
369.66
380.34
Police and Fireman's Retirement System
485,944.00
485,944.00
485,944.00
TOTAL DEFERRED CHARGES AND STATUTORY
EXPENDITURES - MUNICIPAL WITHIN "CAPS"
895,540.00
905,540.00
894,333.08
-
11,206.92
(Continued)
-17-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
TOTAL GENERAL APPROPRIATIONS FOR
MUNICIPAL PURPOSES WITHIN "CAPS"
$
7,220,812.35
$
7,220,812.35
$
6,668,829.08
$
117,424.88
$
434,558.39
OPERATIONS EXCLUDED FROM "CAPS"
Interlocal Municipal Services Agreements:
Kingsway Regional High School District:
Salaries and Wages
55,000.00
55,000.00
50,262.50
4,737.50
Borough of Swedesboro:
Recreation Other Expenses
12,500.00
12,500.00
12,070.08
99.00
330.92
Police Coverage and Protection
Salaries and Wages
664,878.54
664,878.54
664,878.54
Public and Private Programs Offset by Revenues:
Recycling Tonnage Grant
13,582.41
13,582.41
13,582.41
Body Armor Grant
2,774.97
2,774.97
2,774.97
Municipal Alliance on Alcoholism and Drug Abuse:
State Share
8,000.00
8,000.00
8,000.00
Local Share
2,000.00
2,000.00
2,000.00
TOTAL OPERATIONS - EXCLUDED FROM "CAPS"
758,735.92
758,735.92
753,568.50
99.00
5,068.42
Detail:
Salaries and Wages
719,878.54
719,878.54
715,141.04
-
4,737.50
Other Expenses
38,857.38
38,857.38
38,427.46
99.00
330.92
OPERATIONS EXCLUDED FROM "CAPS" (CONT'D)
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"
Capital Improvement Fund
100,000.00
100,000.00
100,000.00
(Continued)
-18-
Exhibit A-3
Appropriations
Expended
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Expenditures - Regulatory Basis
MUNICIPAL DEBT SERVICE -
EXCLUDED FROM "CAPS"
Payment of Bond Principal
$
1,015,000.00
$
1,015,000.00
$
1,015,000.00
Interest on Bonds
482,200.00
482,200.00
482,200.00
Green Trust Loan Program:
Loan Repayment for Principal and Interest
34,200.76
34,200.76
34,200.76
TOTAL MUNICIPAL DEBT SERVICE -
EXCLUDED FROM "CAPS"
1,531,400.76
1,531,400.76
1,531,400.76
-
-
TOTAL GENERAL APPROPRIATIONS FOR
MUNICIPAL PURPOSES EXCLUDED FROM "CAPS"
2,390,136.68
2,390,136.68
2,384,969.26
$
99.00
$
5,068.42
SUBTOTAL GENERAL APPROPRIATIONS
9,610,949.03
9,610,949.03
9,053,798.34
117,523.88
439,626.81
Reserve for Uncollected Taxes
1,312,951.81
1,312,951.81
1,312,951.81
TOTAL GENERAL APPROPRIATIONS
$
10,923,900.84
$
10,923,900.84
$
10,366,750.15
$
117,523.88
$
439,626.81
Budget
$
10,923,900.84
Federal and State Grants
$
26,357.38
Reserve for Uncollected Taxes
1,312,951.81
Cash Disbursements
9,027,440.96
$
10,923,900.84
$
10,366,750.15
The accompanying Notes to Financial Statements are an integral part of this statement.
-19-
18700
Exhibit B
Statements of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
Ref.
2019
2018
Assets:
Animal Control Fund:
Cash - Chief Financial Officer
SB-1
$
6,339.42
$
6,586.44
Municipal Open Space Fund:
Cash - Chief Financial Officer
SB-1
537,745.04
873,801.71
Other Funds:
Cash - Chief Financial Officer
SB-1
4,072,043.52
2,370,388.02
Cash - Tax Collector
SB-2
175,557.09
108,959.09
Due from Contractors
SB-12
123,069.16
-
Due from General Capital Fund
B
100,000.00
100,000.00
4,470,669.77
2,579,347.11
$
5,014,754.23
$
3,459,735.26
Liabilities, Reserves and Fund Balance:
Animal Control Fund:
Due to Current Fund
SB-3
$
94.24
$
94.24
Due to State of New Jersey
SB-4
3.20
-
Reserve for Encumbrances
SB-5
4,659.17
-
Reserve for Animal Control Fund Expenditures
SB-5
1,582.81
6,492.20
6,339.42
6,586.44
Municipal Open Space Fund:
Due to Current Fund
SB-6
4,132.38
335,042.50
Due to General Capital Fund
SB-7
154,356.64
204,356.64
Appropriation Reserves
B-2
23,732.18
-
Encumbrances Payable
B-2, SB-8
133,151.58
185,996.73
Reserve for Future Use
SB-9
222,372.26
148,405.84
537,745.04
873,801.71
(Continued)
TRUST FUND
As of December 31, 2019 and 2018
TOWNSHIP OF WOOLWICH
-20-
18700
Exhibit B
Statements of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
Ref.
2019
2018
TRUST FUND
As of December 31, 2019 and 2018
TOWNSHIP OF WOOLWICH
Liabilities, Reserves and Fund Balance (Cont'd):
Other Funds:
Due Current Fund
SB-10
$
83,661.28
$
81,029.88
Due to State:
Uniform Construction Code Training Fees
SB-11
6,251.00
4,609.00
Encumbrances Payable:
Miscellaneous Trust Reserves
SB-12
577,222.19
-
Reserve for Uniform Construction Code
SB-13
1,786.38
-
Miscellaneous Trust Reserves:
Public Defender
SB-12
4,221.26
3,351.26
Payroll Deductions Payable
SB-12
34,166.00
13,709.56
Site Plan Review Escrow
SB-12
2,095,616.04
774,150.38
Municipal Functions Donations
SB-12
38,707.14
35,677.96
Police Overtime
SB-12
-
65,964.31
P.O.A.A. - Parking Fines
SB-12
602.61
548.61
Police Forfeited Funds
SB-12
7,359.59
4,496.61
Developer's Open Space
SB-12
-
241.01
Developer's Tree Compensation
SB-12
304,099.79
324,196.25
Snow Removal
SB-12
51,160.83
3,210.18
Developer's Recreation Fees
SB-12
34,292.95
112,071.51
COAH Fees
SB-12
364,805.87
333,357.11
Election
SB-12
1,250.00
850.00
Woolwich Recreation Trust
SB-12
25,656.74
21,584.63
Unemployment Trust
SB-12
22.10
3,619.05
Deposits for Redemption of Tax Title Liens
SB-12
9,934.71
9,936.71
Tax Sale Premiums
SB-12
165,622.38
99,022.38
Reserve for Uniform Construction Code
SB-13
664,230.91
687,720.71
4,470,669.77
2,579,347.11
$
5,014,754.23
$
3,459,735.26
The accompanying Notes to Financial Statements are an integral part of this statement.
-21-
18700
Exhibit B-1
Excess or
Budget
Realized
(Deficit)
Amount to be Raised by Taxation
$
594,000.00
$
594,910.12
$
910.12
Reserve Funds:
Reserve for Future Use
31,000.00
31,000.00
Miscellaneous Revenues Not Anticipated
6,243.32
6,243.32
$
625,000.00
$
632,153.44
$
7,153.44
Analysis of Realized Revenues:
Amount to be Raised by Taxation:
Current Year Levy
$
594,000.00
Added Taxes
910.12
$
594,910.12
Miscellaneous Revenues Not Anticipated:
Interest Earned
$
6,243.32
$
6,243.32
Allocation:
Cash - Chief Financial Officer
$
600,243.32
Due Current Fund
910.12
$
601,153.44
The accompanying Notes to Financial Statements are an integral part of this statement.
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2019
MUNICIPAL OPEN SPACE FUND
-22-
18700
Exhibit B-2
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Development of Lands for Recreation & Conservation:
Salaries & Wages
$
150,000.00
$
150,000.00
$
130,156.08
$
19,843.92
Other Expenses
300,000.00
300,000.00
162,960.16
$
133,151.58
3,888.26
Debt Service:
Payment of Bonds
132,000.00
132,000.00
132,000.00
Interest on Bonds
43,000.00
43,000.00
43,000.00
$
625,000.00
$
625,000.00
$
468,116.24
$
133,151.58
$
23,732.18
The accompanying Notes to Financial Statements are an integral part of this statement.
Appropriations
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2019
MUNICIPAL OPEN SPACE FUND
-23-
18700
Exhibit C
GENERAL CAPITAL FUND
Statements of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
Assets:
Ref.
2019
2018
Cash
SC-1
$
2,940,741.96
$
90,986.20
State Aid Receivable
SC-6
170,156.12
363,156.12
Deferred Charges to Future Taxation:
Funded
SC-3
14,079,357.51
15,124,419.43
Unfunded
SC-4
21,221,750.00
20,400,000.00
Due from Current Fund
SC-5
-
77,190.13
Due from Open Space Fund
SC-8
154,356.64
204,356.64
$
38,566,362.23
$
36,260,108.52
Liabilities, Reserves and Fund Balance:
Due to Current Fund
SC-5
$
64,469.58
-
Due to Federal and State Grant Fund
C
127,500.00
$
127,500.00
Due to Trust Other Fund
C
100,000.00
100,000.00
Encumbrances Payable
SC-9
14,101,752.21
15,434,212.46
Capital Improvement Fund
SC-7
111,233.35
54,483.35
Reserve for Developer's Deposits
C
173,465.05
173,465.05
Reserve for Debt Service
SC-5
-
88,588.65
Improvement Authorizations:
Funded
SC-9
211,455.13
412,644.04
Unfunded
SC-9
3,008,877.27
4,723,623.41
General Serial Bonds
SC-10
13,895,000.00
14,910,000.00
Green Trust Loan Payable
SC-11
184,357.51
214,419.43
Bond Anticipation Notes
SC-12
6,500,000.00
-
Fund Balance
C-1
88,252.13
21,172.13
$
38,566,362.23
$
36,260,108.52
The accompanying Notes to Financial Statement are an integral part of this statement
As of December 31, 2019 and 2018
TOWNSHIP OF WOOLWICH
-24-
18700
Exhibit C-1
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Fund Balance - Regulatory Basis
Balance December 31, 2018
$
21,172.13
Increased by:
Premium on Sale of Bonds
67,080.00
Balance December 31, 2019
$
88,252.13
The accompanying Notes to Financial Statements are an integral part of this statement.
For the Year Ended December 31, 2019
-25-
18700
TOWNSHIP OF WOOLWICH
Notes to Financial Statements
For the Year Ended December 31, 2019
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Financial Reporting Entity - The Township of Woolwich (hereafter referred to as the
“Township”) was incorporated as a township by an act of the New Jersey legislature on March 17, 1767
from portions of Greenwich Township. The Township, located in Gloucester County, New Jersey, has a
total area of approximately twenty-one square miles, and is located approximately twenty miles southeast
of the City of Philadelphia. The Township borders Gloucester County Townships of East Greenwich,
Harrison, Logan, South Harrison and the Salem County Townships of Oldmans and Pilesgrove. The
Township also totally surrounds the Borough of Swedesboro. According to the 2010 census, the population
is 10,200.
The Township is governed under the Township Committee form of government, with a five-member
Committee. The Committee is elected directly by the voters in partisan elections to serve three-year terms
of office on a staggered basis, with one or two seats coming up for election each year. At an annual
reorganization meeting, the Committee selects one of its members to serve as Mayor and another as
Deputy Mayor. Legislative and executive power is vested in the Committee.
Measurement Focus, Basis of Accounting and Financial Statement Presentation - The financial
statements of the Township contain all funds and account groups in accordance with the Requirements of
Audit (the “Requirements”) 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
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 States of America applicable to local government
units. The more significant differences are explained in this note.
In accordance with the Requirements, the Township accounts for its financial transactions through the use
of separate funds and an account group which are described as follows:
Current Fund - The current fund accounts for resources and expenditures for governmental
operations of a general nature, including federal and state grant funds.
Trust Funds - The various trust funds account for receipts, custodianship, and disbursement of funds
in accordance with the purpose for which each reserve was created.
General Capital Fund - The general capital 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 Group of Accounts - The general fixed asset group of accounts is utilized to
account for property, land, buildings, and equipment that have been acquired by other governmental
funds.
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Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Budgets and Budgetary Accounting - The Township must adopt an annual budget for its current and
municipal open space funds 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 10 of each
year. At introduction, the governing body shall 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 the Division 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.
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. 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 authorities 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 (“GUDPA”), a multiple
financial institutional collateral pool, 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.
Inventories of Supplies - The costs 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.
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18700
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
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’s Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Part 200, §200.12), 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. No depreciation of general fixed assets is recorded. Donated general fixed
assets are recorded at 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 asset group of accounts, 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 include 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. Lastly, all fixed assets
must be adequately controlled to safeguard against loss, damage, or theft.
Foreclosed Property - Foreclosed property 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 municipality 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 asset group of accounts. If such property is converted to a municipal use, it
will be recorded in the general fixed asset group of accounts.
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.
Liens Sold for Other Governmental Units - Liens sold on behalf of other governmental units are not
recorded on the records of the tax collector until such liens are collected. Upon their collection, such liens
are recorded as a liability due to the governmental unit net of the costs of the initial sale. The related costs
of sale are recognized as revenue when received.
Fund Balance - Fund balances included in the current fund represent the amount available for anticipation
as revenue in future years’ budgets, with certain restrictions.
Revenues - Revenues are recorded when received in cash except for certain amounts which are due from
other governmental units. Revenue from federal and state grants is 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 to the Township
which are susceptible to accrual are also recorded as receivables with offsetting reserves and recorded
as revenue when received.
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18700
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Property Tax Revenues - 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 Swedesboro-Woolwich Consolidated School District and the Kingsway Regional
High School District. Unpaid property taxes are subject to tax sale in accordance with the statutes.
School Taxes - The Township is responsible for levying, collecting, and remitting school taxes for the
Swedesboro-Woolwich Consolidated School District and the Kingsway Regional High School District.
Operations is charged for the full amount required to be raised from taxation to operate the regional high
school district for the period from January 1 to December 31 and for the consolidated school district the
Township’s share of the amount required to be raised by taxation for the period from July 1 to June 30,
increased by the amount deferred at December 31, 2018 and decreased by the amount deferred at
December 31, 2019.
County Taxes - The municipality is responsible for levying, collecting, and remitting county taxes for the
County of Gloucester. County taxes are determined on a calendar year by the County Board of Taxation
based upon the ratables required to be certified to them on January 10 of each year. Operations is charged
for the amount due to the County for the year, based upon the ratables required to be certified to the
County Board of Taxation by January 10 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 10 of the
current year, and due to be paid to the County by February 15 of the following year.
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 - Expenditures are recorded on the "budgetary" basis of accounting. Generally,
expenditures are recorded when paid. However, for charges to amounts appropriated for “other
expenses”, an amount is encumbered through the issuance of a numerically controlled purchase order or
when a contract is executed in accordance with N.J.A.C. 5:30-5.2. When encumbered charges are 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 principal and interest payments on outstanding general capital bonds and notes are
provided on the cash basis.
Appropriation Reserves - Appropriation reserves covering unexpended appropriation balances are
automatically created at year-end and recorded as liabilities, except for amounts which may be canceled
by the governing body. Appropriation reserves are available, until lapsed at the close of the succeeding
year, to meet specific claims, commitments, or contracts incurred during the preceding year. Lapsed
appropriation reserves are 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.
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18700
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Compensated Absences and Postemployment Benefits - Compensated absences for vacation, sick
leave and other compensated absences are recorded and provided for in the annual budget in the year in
which they are paid, on a pay-as-you-go basis. Likewise, no accrual is made for postemployment benefits,
if any, which are also funded on a pay-as-you-go basis.
Note 2: CASH AND CASH EQUIVALENTS
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank
failure, the Township’s deposits might not be recovered. Although the Township does not have a formal
policy regarding custodial credit risk, N.J.S.A. 17:9-41 et seq. requires that governmental units shall
deposit public funds in public depositories protected from loss under the provisions of the Governmental
Unit Deposit Protection Act (GUDPA). Under the Act, the first $250,000.00 of governmental deposits in
each insured depository is protected by the Federal Deposit Insurance Corporation (FDIC). Public funds
owned by the municipality in excess of FDIC insured amounts are protected by GUDPA. However,
GUDPA does not protect intermingled agency funds such as salary withholdings, bail funds, or funds that
may pass to the municipality relative to the happening of a future condition. Such funds are classified as
uninsured and uncollateralized.
As of December 31, 2019, the Township’s bank balances of $14,347,540.23 were exposed to custodial
credit risk as follows:
Insured by FDIC and GUDPA
12,057,024.14
$
Uninsured and Uncollateralized
2,290,516.09
Total
14,347,540.23
$
Note 3: PROPERTY TAXES
The following is a five-year comparison of certain statistical information relative to property taxes and
property tax collections for the current and previous four calendar years:
Comparative Schedule of Tax Rates
Year Ended
2019
2018
2017
2016
2015
Tax Rate
3.756
$
3.741
$
3.668
$
3.632
$
3.549
$
Apportionment of Tax Rate:
Municipal
.555
$
.527
$
.507
$
.508
$
.498
$
Municipal Open Space
.050
.049
.050
.050
.050
County
.836
.810
.785
.768
.745
Local School
1.364
1.423
1.415
1.423
1.408
Regional School
.951
.932
.911
.883
.848
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18700
Notes to Financial Statements (Cont'd)
Note 3: PROPERTY TAXES (CONT’D)
Five-year comparison of certain statistical information relative to property taxes and property tax
collections for the current and previous four calendar years (cont’d):
Assessed Valuation
Year
Amount
2019
1,175,212,910.00
$
2018
1,150,342,410.00
2017
1,133,399,244.00
2016
1,122,915,247.00
2015
1,097,995,392.00
Comparison of Tax Levies and Collections
Percentage
Year
Tax Levy
Collections
of Collections
2019
44,660,055.80
$
44,059,702.65
$
98.66%
2018
43,505,864.81
42,902,055.37
98.61%
2017
42,121,133.56
41,667,531.79
98.92%
2016
41,102,034.54
40,485,057.57
98.50%
2015
40,120,233.89
39,458,612.91
98.35%
Delinquent Taxes and Tax Title Liens
Tax Title
Delinquent
Total
Percentage
Year
Liens
Taxes
Delinquent
of Tax Levy
2019
242,379.56
$
553,998.14
$
796,377.70
$
1.78%
2018
219,601.12
585,120.13
804,721.25
1.85%
2017
198,357.38
432,799.11
631,156.49
1.50%
2016
134,729.98
491,706.06
626,436.04
1.52%
2015
172,184.33
586,269.97
758,454.30
1.89%
The following comparison is made of the number of tax title liens receivable on December 31 for the current
and previous four calendar years:
Year
Number
2019
12
2018
9
2017
11
2016
13
2015
N/A
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18700
Notes to Financial Statements (Cont'd)
Note 4: FUND BALANCES APPROPRIATED
The following schedules detail 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:
Current Fund
Utilized in
Percentage
Balance
Budget of
of Fund
Year
December 31,
Succeeding Year
Balance Used
2019
2,407,705.15
$
1,895,000.00
$
78.71%
2018
2,349,701.39
1,870,000.00
79.58%
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 5: INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances were recorded on the various statements of assets, liabilities, reserves
and fund balance as of December 31, 2019:
Interfunds
Interfunds
Fund
Receivable
Payable
Current
152,357.48
$
274,954.30
$
Federal and State Grant
1,549,954.30
Trust - Animal Control
94.24
Trust - Municipal Open Space
158,489.02
Trust - Other
100,000.00
83,661.28
General Capital
154,356.64
1,439,469.58
Totals
1,956,668.42
$
1,956,668.42
$
The interfund receivables and payables above predominately resulted from collections and payments
made by certain funds on behalf of other funds. During the year 2020, the Township expects to liquidate
such interfunds, depending upon the availability of cash flow.
Note 6: PENSION PLANS
A substantial number of the Township's employees participate in one of the following defined benefit
pension plans: the Public Employees' Retirement System (“PERS”) and the Police and Firemen’s
Retirement System (“PFRS”), which are administered by the New Jersey Division of Pensions and
Benefits. In addition, several Township employees participate in the Defined Contribution Retirement
Program (“DCRP”), which is a defined contribution pension plan. This Plan is administered by Prudential
Financial for the New Jersey Division of Pensions and Benefits. Each Plan has a Board of Trustees that
is primarily responsible for its administration. The Division issues a publicly available financial report that
includes financial statements, required supplementary information and detailed information about the
PERS and PFRS plans’ fiduciary net position which can be obtained by writing to or at the following
website:
State of New Jersey
Division of Pensions and Benefits
P.O. Box 295
Trenton, New Jersey 08625-0295
https://www.state.nj.us/treasury/pensions/financial-reports.shtml
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
General Information about the Pension Plans
Plan Descriptions
Public Employees' Retirement System - The Public Employees' Retirement System is a cost-
sharing multiple-employer defined benefit pension plan which was established as of January 1, 1955,
under the provisions of N.J.S.A. 43:15A. The PERS’ designated purpose is to provide retirement,
death, disability and medical benefits to certain qualified members. Membership in the PERS is
mandatory for substantially all full-time employees of the Township, provided the employee is not
required to be a member of another state-administered retirement system or other state pensions fund
or local jurisdiction’s pension fund. The PERS’ Board of Trustees is primarily responsible for the
administration of the PERS.
Police and Firemen’s Retirement System - The Police and Firemen’s Retirement System is a cost-
sharing multiple-employer defined benefit pension plan which was established as of July 1, 1944,
under the provisions of N.J.S.A. 43:16A. The PFRS’ designated purpose is to provide retirement,
death, disability and medical benefits to certain qualified members. Membership in the PFRS is
mandatory for substantially all full-time police and firemen of the Township. The PFRS’ Board of
Trustees is primarily responsible for the administration of the PFRS.
Defined Contribution Retirement Program - The Defined Contribution Retirement Program is a
multiple-employer defined contribution pension fund established on July 1, 2007 under the provisions
of Chapter 92, P.L. 2007, and Chapter 103, P.L. 2007 (N.J.S.A. 43:15C-1 et. seq.). The DCRP is a
tax-qualified defined contribution money purchase pension plan under Internal Revenue Code (IRC)
§ 401(a) et seq., and is a “governmental plan” within the meaning of IRC § 414(d). The DCRP provides
retirement benefits for eligible employees and their beneficiaries. Individuals covered under DCRP are
employees enrolled in PERS on or after July 1, 2007, who earn salary in excess of established
“maximum compensation” limits; employees enrolled in New Jersey State Police Retirement System
(SPRS) or the Police and Firemen’s Retirement System (PFRS) after May 21, 2010, who earn salary
in excess of established “maximum compensation” limits; employees otherwise eligible to enroll in
PERS on or after November 2, 2008, who do not earn the minimum annual salary for tier 3 enrollment
but who earn salary of at least $5,000.00 annually; and employees otherwise eligible to enroll in PERS
after May 21, 2010 who do not work the minimum number of hours per week required for tiers 4 or 5
enrollment, but who earn salary of at least $5,000.00 annually.
Vesting and Benefit Provisions
Public Employees’ Retirement System - The vesting and benefit provisions are set by N.J.S.A.
43:15A. The PERS provides retirement, death and disability benefits. All benefits vest after 10 years
of service, except for medical benefits, which vest after 25 years of service or under the disability
provisions of the 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 21, 2010
4
Members who were eligible to enroll after May 21, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
General Information about the Pension Plans (Cont’d)
Vesting and Benefit Provisions (Cont’d)
Public Employees’ Retirement System (Cont’d) - Service retirement benefits of 1/55th of final
average salary for each year of service credit is available to tiers 1 and 2 members upon reaching age
60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final average
salary for each year of service credit is available to tier 4 members upon reaching age 62 and 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 years or more 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.
Police and Firemen’s Retirement System - The vesting and benefit provisions are set by N.J.S.A.
43:16A. The PFRS provides retirement, death and disability benefits. All benefits vest after 10 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
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service up to 30 years plus 1% for each year of service in
excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years.
Members may elect deferred retirement benefits after achieving ten years of service, in which case
benefits would begin at age 55 equal to 2% of final compensation for each year of service.
Defined Contribution Retirement Program - Eligible members are provided with a defined
contribution retirement plan intended to qualify for favorable Federal income tax treatment under IRC
Section 401(a), a noncontributory group life insurance plan and a noncontributory group disability
benefit plan. A participant's interest in that portion of his or her defined contribution retirement plan
account attributable to employee contributions shall immediately become and shall at all times remain
fully vested and non-forfeitable. A participant's interest in that portion of his or her defined contribution
retirement plan account attributable to employer contributions shall be vested and non-forfeitable on
the date the participant commences the second year of employment or upon his or her attainment of
age 65, while employed by an employer, whichever occurs first.
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
General Information about the Pension Plans (Cont’d)
Contributions
Public Employees’ Retirement System - The contribution policy is set by N.J.S.A. 43:15A and
requires contributions by active members and contributing employers. Pursuant to the provisions of
P.L. 2011, C. 78, the member contribution rate was 7.50% in State fiscal year 2019. The rate for
members who are eligible for the Prosecutors Part of PERS (P.L. 2001, C. 366) was 10.0% in State
fiscal year 2019. Employers’ contributions are based on an actuarially determined amount, which
includes the normal cost and unfunded accrued liability.
The Township’s contractually required contribution rate for the year ended December 31, 2019 was
13.99% of the Township’s covered payroll. This amount was actuarially determined as the amount
that, when combined with employee contributions, is expected to finance the costs of benefits earned
by employees during the year, including an additional amount to finance any unfunded accrued
liability.
Based on the most recent PERS measurement date of June 30, 2019, the Township’s contractually
required contribution to the pension plan for the year ended December 31, 2019 is $160,099.00, and
was payable by April 1, 2020. Due to the basis of accounting described in note 1, no liability has been
recorded in the financial statements for this amount. Based on the PERS measurement date of June
30, 2018, the Township’s contractually required contribution to the pension plan for the year ended
December 31, 2018 was $172,779.00, which was paid on April 1, 2019. Employee contributions to
the Plan during the year ended December 31, 2019 were $93,248.79.
Police and Firemen’s Retirement System - The contribution policy for PFRS is set by N.J.S.A
43:16A and requires contributions by active members and contributing employers. Pursuant to the
provisions of P.L. 2011, C. 78, the member contribution rate was 10.0% in State fiscal year 2019.
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.
Special Funding Situation Component - 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 nonemployer 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 or
deferred outflows or inflows to disclose in the notes to the financial statements of the local
participating employers related to this legislation.
The Township’s contractually required contribution rate for the year ended December 31, 2019 was
26.39% of the Township’s covered payroll. This amount was actuarially determined as the amount
that, when combined with employee contributions, is expected to finance the costs of benefits earned
by employees during the year, with an additional amount to finance any unfunded accrued liability.
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
General Information about the Pension Plans (Cont’d)
Contributions (Cont’d)
Police and Firemen’s Retirement System (Cont’d) - Based on the most recent PFRS measurement
date of June 30, 2019, the Township’s contractually required contribution to the pension plan for the
year ended December 31, 2019 is $535,283.00, and was payable by April 1, 2020. Due to the basis
of accounting described in note 1, no liability has been recorded in the financial statements for this
amount. Based on the PFRS measurement date of June 30, 2018, the Township’s contractually
required contribution to the pension plan for the year ended December 31, 2018 was $485,944.00,
which was paid on April 1, 2019. Employee contributions to the Plan during the year ended December
31, 2019 were $206,139.24.
The amount of contractually required contribution for the State of New Jersey’s proportionate share,
associated with the Township, for the year ended December 31, 2019 was 3.40% of the Township’s
covered payroll.
Based on the most recent PFRS measurement date of June 30, 2019, the State’s contractually
required contribution, on-behalf of the Township, to the pension plan for the year ended December
31, 2019 is $68,997.00, and was payable by April 1, 2020. Based on the PFRS measurement date of
June 30, 2018, the State’s contractually required contribution, on-behalf of the Township, to the
pension plan for the year ended December 31, 2018 was $54,108.00, which was paid on April 1, 2019.
Defined Contribution Retirement Program - The contribution policy is set by N.J.S.A. 43:15C-3 and
requires contributions by active members and contributing employers. In accordance with Chapter
92, P.L. 2007 and Chapter 103, P.L. 2007, Plan members are required to contribute 5.5% of their
annual covered salary. In addition to the employee contributions, the Township contributes 3% of the
employees' base salary, for each pay period, to Prudential Financial not later than the fifth business
day after the date on which the employee is paid for that pay period.
For the year ended December 31, 2019, employee contributions totaled $677.63, and the Township’s
contributions were $498.96. There were no forfeitures during the year.
Pension Liabilities, Pension (Benefit) Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
Public Employees’ Retirement System - At December 31, 2019, the Township’s proportionate share of
the PERS net pension liability was $2,965,688.00. The net pension liability was measured as of June 30,
2019, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2018. The total pension liability was calculated through the use of updated
procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2019.
The Township’s proportion of the net pension liability 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
employers, actuarially determined. For the June 30, 2019 measurement date, the Township’s proportion
was .0164591452%, which was a decrease of .0009112187% from its proportion measured as of June 30,
2018.
At December 31, 2019, the Township’s proportionate share of the PERS pension expense, calculated by
the Plan as of the June 30, 2019 measurement date is $170,084.00. This expense is not recognized by
the Township because of the regulatory basis of accounting as described in note 1; however, as previously
mentioned, for the year ended December 31, 2019, the Township’s contribution to PERS was
$172,779.00, and was paid on April 1, 2019.
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Pension Liabilities, Pension (Benefit) Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (Cont’d)
Police and Firemen’s Retirement System - At December 31, 2019, the Township’s and State of New
Jersey’s proportionate share of the PFRS net pension liability were as follows:
Township's Proportionate Share of Net Pension Liability
6,485,128.00
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Township
1,024,014.00
7,509,142.00
$
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2018. The total pension
liability was calculated through the use of updated procedures to roll forward from the actuarial valuation
date to the measurement date of June 30, 2019. The Township’s proportion of the net pension liability
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 employers and the State of New Jersey, actuarially
determined. For the June 30, 2019 measurement date, the Township’s proportion was .0529925141%,
which was an increase of .0032870647% from its proportion measured as of June 30, 2018. Likewise, at
June 30, 2019, the State of New Jersey’s proportion, on-behalf of the Township, was .0529925141%,
which was an increase of .0032870647% from its proportion, on-behalf of the Township, measured as of
June 30, 2018.
At December 31, 2019, the Township’s proportionate share of the PFRS pension expense, calculated by
the Plan as of the June 30, 2019 measurement date is $894,739.00. This expense is not recognized by
the Township because of the regulatory basis of accounting as described in note 1; however, as previously
mentioned, for the year ended December 31, 2019, the Township’s contribution to PFRS was $485,944.00,
and was paid on April 1, 2019.
At December 31, 2019, the State’s proportionate share of the PFRS pension expense, associated with the
Township, calculated by the Plan as of the June 30, 2019 measurement date is $118,982.00. This on-
behalf (benefit) expense is not recognized by the Township because of the regulatory basis of accounting
as described in note 1.
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Pension Liabilities, Pension (Benefit) Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (Cont’d)
Deferred Outflows of Resources and Deferred Inflows of Resources - At December 31, 2019, the
Township had deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
PERS
PFRS
Total
PERS
PFRS
Total
Differences between Expected
and Actual Experience
53,230.00
$
54,743.00
$
107,973.00
$
13,101.00
$
41,059.00
$
54,160.00
$
Changes of Assumptions
296,135.00
222,216.00
518,351.00
1,029,381.00
2,095,934.00
3,125,315.00
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
-
-
46,815.00
87,871.00
134,686.00
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
303,859.00
970,302.00
1,274,161.00
328,182.00
7,121.00
335,303.00
Township Contributions Subsequent to
the Measurement Date
80,050.00
267,642.00
347,692.00
-
-
-
733,274.00
$
1,514,903.00
$
2,248,177.00
$
1,417,479.00
$
2,231,985.00
$
3,649,464.00
$
Deferred Outflows of Resources
Deferred Inflows of Resources
$80,050.00 and $267,642.00 for PERS and PFRS, respectively, included in deferred outflows of
resources, will be included as a reduction of the net pension liability in the year ending December 31,
2020. These amounts were based on an estimated April 1, 2021 contractually required contribution,
prorated from the pension plans’ measurement date of June 30, 2019 to the Township’s year end of
December 31, 2019.
-38-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Pension Liabilities, Pension (Benefit) Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (Cont’d)
Deferred Outflows of Resources and Deferred Inflows of Resources (Cont’d) - The Township will
amortize the above other deferred outflow of resources and deferred inflows of resources related to
pensions over the following number of years:
Deferred
Deferred
Deferred
Deferred
Outflows of
Inflows of
Outflows of
Inflows of
Resources
Resources
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
-
-
June 30, 2015
5.72
-
-
5.53
June 30, 2016
5.57
-
-
5.58
June 30, 2017
5.48
-
5.59
-
June 30, 2018
-
5.63
5.73
-
June 30, 2019
5.21
-
-
5.92
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
6.17
-
June 30, 2015
5.72
-
5.53
-
June 30, 2016
5.57
-
5.58
-
June 30, 2017
-
5.48
-
5.59
June 30, 2018
-
5.63
-
5.73
June 30, 2019
-
5.21
-
5.92
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
-
5.00
June 30, 2015
5.00
-
5.00
-
June 30, 2016
5.00
-
5.00
-
June 30, 2017
-
5.00
-
5.00
June 30, 2018
-
5.00
-
5.00
June 30, 2019
-
5.00
-
5.00
Changes in Proportion and Differences
between Township Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
6.17
6.17
June 30, 2015
5.72
5.72
5.53
5.53
June 30, 2016
5.57
5.57
5.58
5.58
June 30, 2017
5.48
5.48
5.59
5.59
June 30, 2018
5.63
5.63
5.73
5.73
June 30, 2019
5.21
5.21
5.92
5.92
PERS
PFRS
-39-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Pension Liabilities, Pension (Benefit) Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (Cont’d)
Deferred Outflows of Resources and Deferred Inflows of Resources (Cont’d) - Other amounts
included as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in future periods as follows:
Year Ending
Dec 31,
PERS
PFRS
Total
2020
(74,156.00)
$
(18,057.00)
$
(92,213.00)
$
2021
(309,366.00)
(461,672.00)
(771,038.00)
2022
(247,850.00)
(331,454.00)
(579,304.00)
2023
(112,603.00)
(114,760.00)
(227,363.00)
2024
(20,280.00)
(58,781.00)
(79,061.00)
(764,255.00)
$
(984,724.00)
$
(1,748,979.00)
$
Actuarial Assumptions
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2018. The total pension
liability was calculated through the use of updated procedures to roll forward from the actuarial valuation
date to the measurement date of June 30, 2019. This actuarial valuation used the following actuarial
assumptions, applied to all periods included in the measurement:
PERS
PFRS
Inflation Rate:
Price
2.75%
2.75%
Wage
3.25%
3.25%
Salary Increases (1):
Through 2026
2.00% - 6.00%
Thereafter
3.00% - 7.00%
Through All Future Years
3.25% - 15.25%
Investment Rate of Return
7.00%
7.00%
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2014 - June 30, 2018
July 1, 2013 - June 30, 2018
(1) Based on Years of Service
-40-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Actuarial Assumptions (Cont’d)
For PERS, pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income
Employee mortality table with an 82.2% adjustment for males and 101.4% adjustment for females, and
with future improvement from the base year of 2010 on a generational basis. Post-retirement mortality
rates were based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a
91.4% adjustment for males and 99.7% adjustment for females, and with future improvement from the
base year of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were
based on the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males
and 117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2019.
For PFRS, pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table
with a 105.6% adjustment for males and 102.5% adjustment for females, and with future improvement
from the base year of 2010 on a generational basis. Post-retirement mortality rates were based on the
Pub-2010 Safety Retiree Below-Median Income Weighted mortality table with a 96.7% adjustment for
males and 96.0% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. For beneficiaries (contingent annuitants), the Pub-2010 General Retiree Below-
Median Income Weighted mortality table was used, unadjusted, and with future improvement from the
base year of 2010 on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled
Retiree mortality table with a 152.0% adjustment for males and 109.3% adjustment for females, and with
future improvement from the base year of 2010 on a generational basis. Mortality improvement is based
on Scale MP-2019.
For PERS and PFRS, in accordance with State statute, the long-term expected rate of return on Plan
investments (7.00% at June 30, 2019) 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’ and PFRS’ target asset allocation as of June 30,
2019 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Risk Mitigation Strategies
3.00%
4.67%
Cash Equivalents
5.00%
2.00%
U.S. Treasuries
5.00%
2.68%
Investment Grade Credit
10.00%
4.25%
High Yield
2.00%
5.37%
Private Credit
6.00%
7.92%
Real Assets
2.50%
9.31%
Real Estate
7.50%
8.33%
U.S. Equity
28.00%
8.26%
Non-U.S. Developed Markets Equity
12.50%
9.00%
Emerging Markets Equity
6.50%
11.37%
Private Equity
12.00%
10.85%
100.00%
-41-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Actuarial Assumptions (Cont’d)
Discount Rate - The discount rate used to measure the total pension liability at June 30, 2019 was 6.28%
for PERS and 6.85% for PFRS. For both PERS and PFRS, the respective single blended discount rates
were based on the long-term expected rate of return on pension plan investments of 7.00%, and a
municipal bond rate of 3.50% as of June 30, 2019, based on the Bond Buyer Go 20-Bond Municipal Bond
Index, which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or
higher. 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 based on 70% of the actuarially determined contributions for the State employer and 100% of
actuarially determined contributions for the local employers. Based on those assumptions, the Plans’
fiduciary net position was projected to be available to make projected future benefit payments of current
plan members through 2057 for PERS and 2076 for PFRS. Therefore, the long-term expected rate of
return on plan investments was applied to projected benefit payments through 2057 for PERS and 2076
for PFRS, and the municipal bond rate was applied to projected benefit payments after that date in
determining the total pension liability.
Sensitivity of Township’s Proportionate Share of Net Pension Liability to Changes in the Discount
Rate
Public Employees' Retirement System (PERS) - The following presents the Township’s proportionate
share of the net pension liability at June 30, 2019, the Plan’s measurement date, calculated using a
discount rate of 6.28%, 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% lower or 1% higher than the current rates
used:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.28%)
(6.28%)
(7.28%)
Township's Proportionate Share
of the Net Pension Liability
3,746,146.00
$
2,965,688.00
$
2,308,042.00
$
PERS
As previously mentioned, PFRS has a special funding situation, where the State of New Jersey pays a
portion of the Township’s annual required contribution. As such, the net pension liability as of June 30,
2019, the Plan’s measurement date, for the Township and the State of New Jersey, calculated using a
discount rate of 6.85%, as well as using a discount rate that is 1% lower or 1% higher than the current
rates used is as follows:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.85%)
(6.85%)
(7.85%)
Township's Proportionate Share
of the Net Pension Liability
8,765,530.00
$
6,485,128.00
$
4,597,767.00
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Township
1,384,094.00
1,024,014.00
725,996.00
10,149,624.00
$
7,509,142.00
$
5,323,763.00
$
PFRS
-42-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Pension Plan Fiduciary Net Position
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension (benefit) expense, information about the respective fiduciary
net position of the PERS and PFRS and additions to/deductions from PERS and PFRS’ respective
fiduciary net position have been determined on the same basis as they are reported by PERS and PFRS.
Accordingly, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value. For additional
information about PERS and PFRS, please refer to the Plan’s Comprehensive Annual Financial Report
(CAFR) which can be found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
Supplementary Pension Information
In accordance with GASBS 68, the following information is also presented for the PERS and PFRS
Pension Plans. These schedules are presented to illustrate the requirements to show information for 10
years; however, until a full 10-year trend is compiled, this presentation will only include information for
those years for which information is available.
Schedule of the Township’s Proportionate Share of the Net Pension Liability - Public Employees’
Retirement System (PERS) (Last Seven Plan Years)
2019
2018
2017
2016
Township's Proportion of the Net Pension Liability
0.0164591452%
0.0173703639%
0.0156472435%
0.0171765481%
Township's Proportionate Share of the Net Pension Liability
2,965,688.00
$
3,420,138.00
$
3,642,428.00
$
5,087,201.00
$
Township's Covered Payroll (Plan Measurement Period)
1,148,968.00
$
1,166,584.00
$
1,071,148.00
$
1,194,272.00
$
Township's Proportionate Share of the Net Pension
Liability as a Percentage of Covered Payroll
258.12%
293.18%
340.05%
425.97%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
56.27%
53.60%
48.10%
40.14%
2015
2014
2013
Township's Proportion of the Net Pension Liability
0.0171832657%
0.0149843718%
0.0157604803%
Township's Proportionate Share of the Net Pension Liability
3,857,299.00
$
2,805,484.00
$
3,012,141.00
$
Township's Covered Payroll (Plan Measurement Period)
1,168,244.00
$
1,052,628.00
$
1,093,608.00
$
Township's Proportionate Share of the Net Pension
Liability as a Percentage of Covered Payroll
330.18%
266.52%
275.43%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
47.93%
52.08%
48.72%
Measurement Date Ended June 30,
Measurement Date Ended June 30,
-43-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Supplementary Pension Information (Cont’d)
Schedule of the Township’s Contributions - Public Employees’ Retirement System (PERS) (Last
Seven Years)
2019
2018
2017
2016
Township's Contractually Required Contribution
160,099.00
$
172,779.00
$
144,955.00
$
152,594.00
$
Township's Contribution in Relation to the Contractually
Required Contribution
(160,099.00)
(172,779.00)
(144,955.00)
(152,594.00)
Township's Contribution Deficiency (Excess)
-
$
-
$
-
$
-
$
Township's Covered Payroll (Calendar Year)
1,144,425.00
$
1,150,333.00
$
1,119,521.00
$
1,061,308.00
$
Township's Contributions as a Percentage of
Covered Payroll
13.99%
15.02%
12.95%
14.38%
2015
2014
2013
Township's Contractually Required Contribution
147,730.00
$
123,529.00
$
118,752.00
$
Township's Contribution in Relation to the Contractually
Required Contribution
(147,730.00)
(123,529.00)
(118,752.00)
Township's Contribution Deficiency (Excess)
-
$
-
$
-
$
Township's Covered Payroll (Calendar Year)
1,202,760.00
$
1,174,569.00
$
1,098,554.00
$
Township's Contributions as a Percentage of
Covered Payroll
12.28%
10.52%
10.81%
Year Ended December 31,
Year Ended December 31,
-44-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Supplementary Pension Information (Cont’d)
Schedule of the Township’s Proportionate Share of the Net Pension Liability - Police and Firemen’s
Retirement System (PFRS) (Last Seven Plan Years)
2019
2018
2017
2016
Township's Proportion of the Net Pension Liability
0.0529925141%
0.0497054494%
0.0473899721%
0.0459970966%
Township's Proportionate Share of the Net Pension Liability
6,485,128.00
$
6,725,967.00
$
7,316,095.00
$
8,786,622.00
$
State's Proportionate Share of the Net Pension Liability
associated with the Township
1,024,014.00
913,611.00
819,464.00
737,858.00
Total
7,509,142.00
$
7,639,578.00
$
8,135,559.00
$
9,524,480.00
$
Township's Covered Payroll (Plan Measurement Period)
1,582,796.00
$
1,630,020.00
$
1,533,896.00
$
1,470,180.00
$
Township's Proportionate Share of the Net Pension
Liability as a Percentage of Covered Payroll
409.73%
412.63%
476.96%
597.66%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
65.00%
62.48%
58.60%
52.01%
2015
2014
2013
Township's Proportion of the Net Pension Liability
0.0417098663%
0.0392311073%
0.0411755980%
Township's Proportionate Share of the Net Pension Liability
6,947,410.00
$
4,934,909.00
$
5,473,924.00
$
State's Proportionate Share of the Net Pension Liability
associated with the Township
609,265.00
531,407.00
510,236.00
Total
7,556,675.00
$
5,466,316.00
$
5,984,160.00
$
Township's Covered Payroll (Plan Measurement Period)
1,320,876.00
$
1,239,108.00
$
1,383,104.00
$
Township's Proportionate Share of the Net Pension
Liability as a Percentage of Covered Payroll
525.97%
398.26%
395.77%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
56.31%
62.41%
58.70%
Measurement Date Ended June 30,
Measurement Date Ended June 30,
-45-
18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Supplementary Pension Information (Cont’d)
Schedule of the Township’s Contributions - Police and Firemen’s Retirement System (PFRS) (Last
Seven Years)
2019
2018
2017
2016
Township's Contractually Required Contribution
535,283.00
$
485,944.00
$
419,410.00
$
375,033.00
$
Township's Contribution in Relation to the Contractually
Required Contribution
(535,283.00)
(485,944.00)
(419,410.00)
(375,033.00)
Township's Contribution Deficiency (Excess)
-
$
-
$
-
$
-
$
Township's Covered Payroll (Calendar Year)
2,028,428.00
$
1,738,352.00
$
1,685,663.00
$
1,527,330.00
$
Township's Contributions as a Percentage of
Covered Payroll
26.39%
27.95%
24.88%
24.55%
2015
2014
2013
Township's Contractually Required Contribution
339,039.00
$
301,322.00
$
300,408.00
$
Township's Contribution in Relation to the Contractually
Required Contribution
(339,039.00)
(301,322.00)
(300,408.00)
Township's Contribution Deficiency (Excess)
-
$
-
$
-
$
Township's Covered Payroll (Calendar Year)
1,469,587.00
$
1,333,003.00
$
1,244,497.00
$
Township's Contributions as a Percentage of
Covered Payroll
23.07%
22.60%
24.14%
Year Ended December 31,
Year Ended December 31,
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Supplementary Pension Information (Cont’d)
Other Notes to Supplementary Pension Information
Public Employees’ Retirement System (PERS)
Changes in Benefit Terms
None
Changes in Assumptions
The Discount Rate changed at June 30th over the following years: 5.39% 2014, 4.90% 2015, 3.98% 2016,
5.00% 2017, 5.66% 2018, and 6.28% 2019.
The Long-term Expected Rate of Return changed at June 30th over the following years: 7.90% 2014 and
2015, 7.65% 2016, 7.00% 2017, 2018 and 2019.
For 2019, the assumed rates of retirement, mortality, salary increases, and inflation were updated based
on the July 1, 2014 - June 30, 2018 Experience Study. For pre-retirement mortality, the Pub-2010 General
Below-Median Income Employee mortality table with an 82.2% adjustment for males and 101.4%
adjustment for females, and with future improvement from the base year of 2010 on a generational basis
was used. For healthy retirees and beneficiaries, the Pub-2010 General Below-Median Income Healthy
Retiree mortality table with a 91.4% adjustment for males and 99.7% adjustment for females, and with
future improvement from the base year of 2010 on a generational basis was used. For disabled retiree
mortality, the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males,
and a 117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis was used. For mortality improvement, Scale MP-2019 was used.
For 2016, demographic assumptions were revised in accordance with the results of the July 1, 2011 - June
30, 2014 experience study and the mortality improvement scale incorporated the plan actuary's modified
MP-2014 projection scale. Further, salary increases were assumed to increase between 1.65% and 4.15%
(based on age) through fiscal year 2026 and 2.65% and 5.15% (based on age) for each fiscal year
thereafter.
Police and Firemen’s Retirement System (PFRS)
Changes in Benefit Terms
In 2017, Chapter 26, P.L. 2016 increased the accidental death benefit payable to children if there is no
surviving spouse to 70% of final compensation.
Changes in Assumptions
The Discount Rate changed at June 30th over the following years: 6.32% 2014, 5.79% 2015, 5.55% 2016,
6.14% 2017, 6.51% 2018 and 6.85% 2019.
The Long-term Expected Rate of Return changed at June 30th over the following years: 7.90% 2014 and
2015, 7.65% 2016, 7.00% 2017, 2018 and 2019.
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18700
Notes to Financial Statements (Cont'd)
Note 6: PENSION PLANS (CONT’D)
Supplementary Pension Information (Cont’d)
Other Notes to Supplementary Pension Information (Cont’d)
Police and Firemen’s Retirement System (PFRS) (Cont’d)
Changes in Assumptions (Cont’d)
For 2019, the assumed rates of retirement, mortality, salary increases, and inflation were updated based
on the July 1, 2013 - June 30, 2018 Experience Study. For pre-retirement mortality, the Pub-201 Safety
Employee mortality table with a 105.6% adjustment for males and 102.5% adjustment for females, and
with future improvement from the base year of 2010 on a generational basis was used. For healthy retirees,
the Pub-2010 Safety Retiree Below-Median Income Weighted mortality table with a 96.7% adjustment for
males and 96.0% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis was used. For beneficiaries mortality, the Pub-2010 General Retiree Below-Median
Income Weighted mortality table, unadjusted, and with future improvement from the base year of 2010 on
a generational basis was used. For disabled mortality, the Pub-2010 Safety Disabled Retiree mortality
table with a 152.0% adjustment for males and 109.3% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis was used. For mortality improvement,
Scale MP-2019 was used.
For 2016, the mortality improvement scale incorporated the plan actuary's modified 2014 projection scale.
Further, salary increases were assumed to increase between 2.10% and 8.98% (based on age through
fiscal year 2026 and 3.10% and 9.98% (based on age) for each fiscal year thereafter. For 2015,
demographic assumptions were revised in accordance with the results of the July 1, 2010 - June 30, 2013
experience study.
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18700
Notes to Financial Statements (Cont'd)
Note 7: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
General Information about the OPEB Plan
Plan Description and Benefits Provided - The Township does not provide postemployment benefits to
its retirees, however, the State of New Jersey (the “State”) provides these benefits to certain Township
retirees and their dependents under a special funding situation as described below.
The State of New Jersey, on-behalf of the Township, contributes to the State Health Benefits Local
Government Retired Employees Plan (the “Plan”), which is a cost-sharing multiple-employer defined
benefit other postemployment benefit (OPEB) plan with a special funding situation. It covers employees
of local government employers that have adopted a resolution to participate in the Plan. The Plan meets
the definition of an equivalent arrangement as defined in paragraph 4 of GASB Statement No. 75,
Accounting and Financial Reporting for the Postemployment Benefits Other Than Pensions (GASB
Statement No. 75); therefore, assets are accumulated to pay associated benefits. For additional
information about the Plan, please refer to the State of New Jersey (the State), Division of Pensions and
Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be found at
https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally
administered retirement system and a period of service of up to 25 years with the employer at the time of
retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of
service with the employer. Further, the law provides that the employer paid obligations for retiree coverage
may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides
medical and prescription coverage to local police officers and firefighters, who retire with 25 years of
service or on a disability from an employer who does not provide postretirement medical coverage. Local
employers were required to file a resolution with the Division in order for their employees to qualify for
State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree
health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter
271, P.L.1989.
Pursuant to Chapter 78, P.L. 2011, future retirees eligible for postretirement medical coverage who have
less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost
of their health care coverage in retirement provided they retire with 25 or more years of pension service
credit. The percentage of the premium for which the retiree will be responsible will be determined based
on the retiree’s annual retirement benefit and level of coverage.
Contributions - The funding policy for the OPEB plan is pay-as-you-go; therefore, there is no prefunding
of the liability. However, due to premium rates being set prior to each calendar year, there is a minimal
amount of net position available to cover benefits in future years. Contributions to pay for the health benefit
premiums of participating employees in the OPEB plan are collected from the State of New Jersey,
participating local employers, and retired members.
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Notes to Financial Statements (Cont'd)
Note 7: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
General Information about the OPEB Plan
Contributions (Cont’d) - Special Funding Situation Component - The State of New Jersey makes
contributions to cover those employees eligible under Chapter 330, P.L. 1997, as disclosed below. Local
employers remit employer contributions on a monthly basis. Retired member contributions are generally
received on a monthly basis. Partially funded benefits are also available to local police officers and
firefighters who retire with 25 years of service or on disability from an employer who does not provide
coverage under the provisions of Chapter 330, P.L. 1997. Upon retirement, these individuals must enroll
in the OPEB plan.
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local
police and firefighter retirees and dependents equal to 80% of the premium or periodic charge for the
category of coverage elected by the qualified retiree under the State managed care plan or a health
maintenance organization participating in the program providing the lowest premium or periodic charge.
The State also provides funding for retiree health benefits to survivors of local police officers and
firefighters who die in the line of duty under Chapter 271, P.L.1989.
Therefore, the Township is considered to be in a special funding situation as defined by GASB Statement
No. 75 and the State is treated as a nonemployer contributing entity. Since the Township does not
contribute under this legislation directly to the Plan, there is no net OPEB liability, deferred outflows of
resources or deferred inflows of resources to report in the financial statements of the local participating
employers related to this legislation. However, the Township is required disclose:
a) the State’s proportion (percentage) of the collective net OPEB liability that is associated with
the Township,
b) the State’s proportionate share of the collective net OPEB liability that is associated with the
Township, and
c) the State’s proportionate share of the OPEB (benefit) expense that is associated with the
Township.
The amount of actual contributions to the OPEB Plan made by the State, on-behalf of the Township, is not
known, however, under the Special Funding Situation, the State’s OPEB (benefit) expense, on-behalf of
the Township, is $66,336.00 for the year ended December 31, 2019 representing 3.27% of the Township’s
covered payroll.
OPEB Liability and OPEB (Benefit) Expense
OPEB Liability - At December 31, 2019 the State’s proportionate share of the net OPEB liability
associated with the Township is $5,004,533.00. The net OPEB liability was measured as of June 30, 2019,
and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of June 30, 2018, which was rolled forward to June 30, 2019.
The State’s proportion of the net OPEB liability, on-behalf of the Township, was based on the ratio of the
plan members of an individual employer to the total members of the Plan’s special funding situation during
the measurement period July 1, 2018 through June 30, 2019. For the June 30, 2019 measurement date,
the State’s proportion on-behalf of the Township was .090568% which was an increase of .002589% from
its proportion measured as of the June 30, 2018 measurement date.
OPEB (Benefit) Expense - At December 31, 2019, the State’s proportionate share of the OPEB (benefit)
expense, associated with the Township, calculated by the Plan as of the June 30, 2019 measurement date
is $66,336.00. This on-behalf (benefit) expense is not recognized by the Township because of the
regulatory basis of accounting as described in note 1.
-50-
18700
Notes to Financial Statements (Cont'd)
Note 7: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT’D)
Actuarial Assumptions
The actuarial assumptions vary for each plan member depending on the pension plan in which the member
is enrolled. The actuarial valuation at June 30, 2019 used the following actuarial assumptions, applied to
all periods in the measurement:
PERS mortality rates were based on Pub-2010 General classification headcount weighted mortality with
fully generational morality improvement projections from the central year using Scale MP-2019.
Actuarial assumptions used in the July 1, 2018 valuation were based on the results of the PFRS experience
study prepared for July 1, 2013 to June 30, 2018.
100% of active members are considered to participate in the Plan upon retirement.
All of the Plan’s investments are in the State of New Jersey Cash Management Fund (“CMF”). The New
Jersey Division of Investments manages the CMF, which is available on a voluntary basis for investment
by State and certain non-State participants. The CMF is considered to be an investment trust fund as
defined in GASB Statement No. 31, Certain Investments and External Investment Pools. The CMF invests
in U.S. Government and Agency Obligations, Commercial Paper, Corporate Obligations and Certificates
of Deposit. Units of ownership in the CMF may be purchased or redeemed on any given business day
(excluding State holidays) are the unit cost of value of $1.00. Participant shares are valued on a fair value
basis. The CMF pay interest to participants on a monthly basis.
Discount Rate - The discount rate used to measure the OPEB Liability at June 30, 2019 was 3.50%. This
represents the municipal bond return rate as chosen by the State. The source is the Bond Buyer Go 20-
Bond Municipal Bond Index, which includes tax-exempt general obligation municipal bonds with an
average rating of AA/Aa or higher. As the long-term rate of return is less than the municipal bond rate, it
is not considered in the calculation of the discount rate, rather the discount rate is set at the municipal
bond rate.
Health Care Trend Assumptions - For pre-Medicare medical benefits, the trend is initially 5.7% and
decreases to a 4.5% long-term trend rate after eight years. For post-65 medical benefits, the actual fully-
insured Medicare Advantage trend rates for fiscal year 2020 are reflected. The assumed post-65 medical
trend is 4.5% for all future years. For prescription drug benefits, the initial trend rate is 7.5% and decreases
to a 4.5% long-term trend rate after eight years.
Inflation Rate
2.50%
Salary Increases *
PERS:
Initial Fiscal Year Applied:
Rate Through 2026
2.00% to 6.00%
Rate Thereafter
3.00% to 7.00%
PFRS:
Rate for all Years
3.25% to 15.25%
* Salary Increases are Based on Years of Service
Within the Respective Plan
-51-
18700
Notes to Financial Statements (Cont'd)
Note 7: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT’D)
Sensitivity of the net OPEB Liability to Changes in the Discount Rate
As previously mentioned, the OPEB Plan has a special funding situation where the State of New Jersey
pays a portion of the Township’s contributions for certain eligible employees. As such, the proportionate
share of the net OPEB liability as of June 30, 2019, the Plan’s measurement date, for the Township and
the State of New Jersey, calculated using a discount rate of 3.50%, as well as using a discount rate that
is 1% lower or 1% higher than the current rates used, is as follows:
1%
Current
1%
Decrease
Discount Rate
Increase
(2.50%)
(3.50%)
(4.50%)
State of New Jersey's Proportionate Share
of the Net OPEB Liability Associated
with the Township
5,786,513.00
$
5,004,533.00
$
4,369,071.00
$
Sensitivity of the net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The net OPEB Liability as of June 30, 2019, the Plan’s measurement date, using a healthcare cost trend
rates that are 1% lower or 1% higher than the current healthcare cost trend rate used, is as follows:
1%
Healthcare Cost
1%
Decrease
Trend Rates
Increase
State of New Jersey's Proportionate Share
of the Net OPEB Liability Associated
with the Township
4,223,209.00
$
5,004,533.00
$
6,001,243.00
$
OPEB Plan Fiduciary Net Position
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB (benefit) expense, information about the respective fiduciary net
position of the State Health Benefits Local Government Retired Employees Plan and additions
to/deductions from the Plan’s respective fiduciary net position have been determined on the same basis
as they are reported by the Plan. Accordingly, contributions (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value. For additional information about the Plan, please refer to the Plan’s Comprehensive Annual
Financial Report (CAFR) which can be found at https://www.state.nj.us/treasury/pensions/financial-
reports.shtml.
Supplementary OPEB Information
In accordance with GASBS No. 75, the following information is also presented for the State Health Benefits
Local Government Retired Employees Plan. These schedules are presented to illustrate the requirements
to show information for 10 years; however, until a full 10-year trend is compiled, this presentation will only
include information for those years for which information is available.
-52-
18700
Notes to Financial Statements (Cont'd)
Note 7: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT’D)
Supplementary OPEB Information (Cont’d)
Schedule of the Township’s Proportionate Share of the net OPEB Liability (Last Three Plan Years)
2019
2018
2017
Township's Proportion of the Net OPEB Liability
0.00%
0.00%
0.00%
State's Proportion of the Net OPEB Liability
Associated with the Township
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Township's Proportionate Share of the Net OPEB Liability
-
$
-
$
-
$
State's Proportionate Share of the Net OPEB Liability
Associated with the Township
5,004,533.00
5,466,878.00
6,560,254.00
Total
5,004,533.00
$
5,466,878.00
$
6,560,254.00
$
Township's Covered Payroll (Plan Measurement Period)
1,907,457.00
$
1,730,364.00
$
1,568,308.00
$
Township's Proportionate Share of the Net OPEB
Liability as a Percentage of Covered Payroll
0.00%
0.00%
0.00%
State's Proportionate Share of the Net OPEB
Liability as a Percentage of Covered Payroll
262.367%
315.938%
418.301%
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability
1.98%
1.97%
1.03%
Measurement Date Ended June 30,
Schedule of the Township’s Contributions (Last Three Years)
The amount of actual contributions that the State made on-behalf of the Township is not known.
Other Notes to Supplementary OPEB Information
Changes in Benefit Terms
In 2019, there were slight changes to the Chapter 48 provisions.
Changes in Assumptions
In 2019, the discount rate changed to 3.50% from 3.87%, and there were changes in the assumed health
care cost trend, PPO/HMO future retiree elections, and excise tax assumptions. Further, decrements,
salary scale, and mortality assumptions were updated based on the July 1, 2013 - June 30, 2018 PFRS
and July 1, 2014 - June 30, 2018 PERS experience studies. For mortality related to PFRS members and
retirees, the Pub-2010 "Safety" classification headcount-weighted mortality table with fully generational
mortality improvement projections from the central year using Scale MP-2019 was used. For mortality
related to PERS members and retirees, the Pub-2010 "General" classification headcount-weighted
mortality table with fully generational mortality improvement projections from the central year using Scale
MP-2019 was used.
In 2018, the discount rate changed to 3.87% from 3.58%, there were changes in the census, claims and
premiums experience and a decrease in the assumed health care cost trend and excise tax assumptions.
In 2017, the discount rate changed to 3.58% from 2.85%.
-53-
18700
Notes to Financial Statements (Cont'd)
Note 8: COMPENSATED ABSENCES
Full-time employees are entitled to six paid sick leave days each year. Township employees may
accumulate and carry forward sick time to a maximum of 30 days. There is a maximum pay-out of
$10,000.00 and is paid at the rate of pay upon retirement. Up to 5 vacation days not used during the
year may be carried forward; however, no accumulation of vacation time is permitted. Employees are
paid for all accrued vacation time at retirement only.
Full-time police are entitled to up to 120 paid sick leave hours each year. Sick time may be accumulated
and carried forward to subsequent years; however, no sick time is paid upon termination or retirement.
Up to 4 vacation days not used during the year may be carried forward. Employees are paid for all accrued
vacation time at retirement only.
The Township does not record accrued expenses related to compensated absences. However, it is
estimated that, at December 31, 2019, accrued benefits for compensated absences are valued at
$117,553.35.
Note 9: 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 benefit 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.
Note 10: CAPITAL DEBT
General Obligation Bonds
General Obligation Refunding Bonds, Series 2015 - On April 15, 2015, the Township issued $4,580,000.00
in general obligation refunding bonds, with an interest rate of 3.0%, to advance refund $4,470,000.00 of
the outstanding 2006 general improvement bonds with an interest rate of 4.0%. The final maturity of the
bonds is December 15, 2025.
General Obligation Bonds, Series 2016 - On October 13, 2016, the Township issued $5,500,000.00 of
General Obligation Bonds, with interest rates ranging from 2.0% to 4.0%. The bonds were issued for the
purpose of funding the completion of various capital improvements and acquisition of various capital
equipment within the Township. The final maturity of the bonds is October 1, 2036.
General Obligation Refunding Bonds, Series 2017 - On August 23, 2017, the Township issued
$6,535,000.00 in general obligation refunding bonds, with interest rates ranging from 2.0% to 4.0%, to
advance refund $8,350,000.00 of the outstanding 2007guaranteed lease revenue bonds. The final
maturity of the bonds is June 1, 2032.
-54-
18700
Notes to Financial Statements (Cont'd)
Note 10: CAPITAL DEBT (CONT’D)
General Obligation Bonds (Cont’d)
The following schedule represents the remaining debt service, through maturity, for the general obligation
bonds:
Year
Principal
Interest
Total
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
1,145,000.00
344,600.00
1,489,600.00
2024
1,180,000.00
303,650.00
1,483,650.00
2025-2029
4,410,000.00
998,562.50
5,408,562.50
2030-2034
3,250,000.00
329,850.00
3,579,850.00
2035-2036
650,000.00
29,250.00
679,250.00
Totals
13,895,000.00
$
3,257,312.50
$
17,152,312.50
$
General Debt – Green Trust Loan Program
On January 4, 2002, the Township settled on a loan agreement with the New Jersey Department of
Environmental Protection in the amount of $150,000.00, at an interest rate of 2.0%. The proceeds were
used to partial fund the construction of the Locke Avenue Park. Semiannual debt payments are due July
12th and January 22th through 2022.
On April 26, 2007, the Township settled on a loan agreement with the New Jersey Department of
Environmental Protection in the amount of $400,000.00, at an interest rate of 2.0%. The proceeds were
used to partial fund the construction of the Delmonte Park Expansion. Semiannual debt payments are due
April 26th and October 26th through 2026.
The following schedule represents the remaining debt service, through maturity, for the New Jersey Green
Acres Trust loans:
Year
Principal
Interest
Total
2020
30,666.17
$
3,534.57
$
34,200.74
$
2021
31,282.56
2,918.18
34,200.74
2022
27,247.61
2,289.39
29,537.00
2023
23,084.91
1,788.35
24,873.26
2024
23,548.91
1,324.35
24,873.26
2025-2026
48,527.35
1,219.17
49,746.52
Totals
184,357.51
$
13,074.01
$
197,431.52
$
-55-
18700
Notes to Financial Statements (Cont'd)
Note 10: CAPITAL DEBT (CONT’D)
The following schedule represents the Township’s summary of debt for the current and two previous years:
2019
2018
2017
Issued
General:
Bonds, Loans and Notes
20,579,357.51
$
15,124,419.43
$
16,153,889.01
$
Authorized but not Issued
General:
Bonds, Loans and Notes
14,721,750.00
20,400,000.00
15,400,000.00
Net Debt
35,301,107.51
$
35,524,419.43
$
31,553,889.01
$
Summary of Statutory Debt Condition - Annual Debt Statement
The summarized statement of debt condition which follows is prepared in accordance with the required
method of setting up the annual debt statement and indicated a statutory net debt of 2.717%.
Gross Debt
Deductions
Net Debt
School Purposes
42,319,637.77
$
42,319,637.77
$
General
35,301,107.51
35,301,107.51
$
77,620,745.28
$
42,319,637.77
$
35,301,107.51
$
Net debt $35,301,107.51 divided by the equalized valuation basis per N.J.S.A.40A:2-2, as amended,
$1,299,201,137.00, equals 2.717%.
Borrowing Power Under N.J.S.A. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
45,472,039.80
$
Less: Net Debt
35,301,107.51
Remaining Borrowing Power
10,170,932.29
$
Note 11: SCHOOL TAXES
Kingsway Regional High School tax has been raised and the liability deferred by statutes, resulting in the
school tax payable set forth in the current fund liabilities as follows:
Balance December 31,
2019
2018
Balance of Tax
8,012,905.80
$
8,187,459.79
$
Deferred
5,410,504.32
5,410,504.32
Taxes Payable
2,602,401.48
$
2,776,955.47
$
-56-
18700
Notes to Financial Statements (Cont'd)
Note 12: 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.
New Jersey Unemployment Compensation Insurance - The Township has elected to fund its New
Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this
plan, the Township is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid
to its former employees and charged to its account with the State. The Township is billed quarterly for
amounts due to the State.
The following is a summary of Township contributions, reimbursements to the State for benefits paid and
the ending balance of the Township's trust fund for the current and previous two years:
Township
Employee
Interest
Amount
Ending
Year
Contributions
Contributions
Earnings
Reimbursed
Balance
2019
-
-
7.92
$
4,624.87
$
(997.90)
$
2018
5,000.00
$
-
2.07
3,818.28
3,619.05
2017
-
-
9.46
5,553.42
2,435.26
It is estimated that there were no unreimbursed payments on behalf of the Township at December 31,
2019.
Joint Insurance Pool - The Township of Woolwich is a member of the Gloucester, Salem, Cumberland
Counties Municipal Insurance Joint Insurance Fund. The Fund provides its members with the following
coverage:
Workers' Compensation including Employer's Liability
General Liability including Police Professional and Employee Benefit Liability
Automobile Liability
Blanket Crime including Public Employee Dishonesty
Property Including Boiler and Machinery
Public Officials and Employment Practices Liability
Volunteer Directors and Officers Liability
Cyber Liability
The following coverages are provided to the Fund’s member local units by their membership in the
Municipal Excess Liability Joint Insurance Fund (MEL):
Excess Workers' Compensation
Excess General Liability
Non-Owned Aircraft Liability
Excess Auto Liability
Fidelity and Performance (Blanket)
Excess Property including Boiler and Machinery
Crime including Excess Public Employee and Public Official Coverage
Environmental Impairment Liability coverage is provided to the Fund’s member local units by the Fund’s
membership in the New Jersey Municipal Environmental Risk Management Fund.
Contributions to the Fund, including a reserve for contingencies, are payable in two installments and are
based on actuarial assumptions determined by the Fund's actuary. The Commissioner of Banking and
Insurance may order additional assessments to supplement the Fund's claim, loss retention, or
administrative accounts to assure the payment of the Fund's obligations.
-57-
18700
Notes to Financial Statements (Cont'd)
Note 12: RISK MANAGEMENT (CONT’D)
Joint Insurance Pool (Cont’d) - 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, which is an insurance pool formed by all the other joint insurance funds.
For more information regarding claims, coverages and deductibles, the Fund publishes its own financial
report which can be obtained from:
Gloucester, Salem, Cumberland Counties Municipal Joint Insurance Fund
P.O. Box 490
Marlton, New Jersey 08053
Note 13: OPEN SPACE, RECREATION AND FARMLAND PRESERVATION TRUST
On November 4, 1997 pursuant to P.L. 1997, c. 24 (N.J.S.A. 40:12-15.1 et seq.), the voters of the
Township authorized the establishment of the Township of Woolwich Open Space, Recreation and
Farmland Preservation Trust Fund effective January 1, 2000, for the purpose of raising revenue for the
acquisition of lands and interests in lands for the conservation of farmland and open space. Overall, as a
result of the two referendums, the Township levies a tax not to exceed three cents per one hundred dollars
of equalized valuation. Amounts raised by taxation are assessed, levied and collected in the same manner
and at the same time as other taxes. Future increases in the tax rate or to extend the authorization must
be authorized by referendum. All revenue received is accounted for in a trust fund dedicated by rider
(N.J.S.A. 40A:4-39) for the purposed stated. Interest earned on the investment of these funds is credited
to the Township of Woolwich Open Space, Recreation and Farmland Preservation Trust Funds.
Note 14: CONTINGENCIES
Grantor Agencies - Amounts received or receivable from grantor agencies could be subject to audit and
adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time, although the Township expects such amount, if any, to
be immaterial.
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.
Note 15: CONCENTRATIONS
The Township depends on financial resources flowing from, or associated with, both the federal
government and the State of New Jersey. As a result of this dependency, the Township is subject to
changes in specific flows of intergovernmental revenues based on modifications to federal and State laws
and federal and State appropriations.
-58-
18700
Notes to Financial Statements (Cont'd)
Note 16: SUBSEQUENT EVENTS (CONT’D)
Authorization of Debt - Subsequent to December 31, the Township authorized additional bonds and
notes as follows:
Purpose
Adoption
Authorization
General Improvements
Completion of Various Road and Drainage Improvements
10/19/2020
3,325,000.00
$
COVID-19 - On January 30, 2020, the World Health Organization (“WHO”) announced a global health
emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”)
and the risks to the international community as the virus spreads globally beyond its point of origin. In
March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in
exposure globally.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is
uncertain as to the full magnitude that the pandemic will have on the Township’s financial condition,
liquidity, and future results of operations. Management is actively monitoring the global situation on its
financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of
the COVID-19 outbreak and the global responses to curb its spread, the Township is not able to estimate
the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for
calendar year 2020.
-59-
SUPPLEMENTAL EXHIBITS
-60-
SUPPLEMENTAL EXHIBITS
CURRENT FUND
-61-
Exhibit SA-1
Balance December 31, 2018
$
6,636,149.42
Increased by Receipts:
Tax Collector
$
44,596,092.54
Revenue Accounts Receivable
1,495,271.96
Miscellaneous Revenue Not Anticipated
638,736.32
Due from State of New Jersey
50,375.00
Federal and State Grants Receivable
234,204.62
Marriage Licenses Payable
1,415.00
Due Trust Other Fund
2,047.34
Due Municipal Open Space Trust Fund
330,000.00
Due General Capital Fund
593,000.00
47,941,142.78
54,577,292.20
Decreased by Disbursements:
2018 Appropriation Reserves
507,756.61
2019 Appropriations
9,027,440.96
County Taxes
9,807,710.03
Due County for Added and Omitted Taxes
99,435.97
Local District School Tax
16,200,364.99
Regional School District Tax
11,185,321.02
Municipal Open Space Tax
588,124.10
Due Municipal Open Space for Added and Omitted Taxes
5,875.90
Refund Tax Overpayments
42,522.61
Refund Revenue
3,475.00
Federal and State Grants Expenditures
78,394.89
Marriage Licenses Payable
1,250.00
Accounts Payable
2,852.00
Due General Capital Fund
646,071.06
48,196,595.14
Balance December 31, 2019
$
6,380,697.06
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Current Cash -- Chief Financial Officer
-62-
18700
Exhibit SA-2
Increased by:
Taxes Receivable
$
44,131,893.56
Tax Title Liens Receivable
22,812.38
Prepaid Taxes
274,340.77
Tax Overpayments
55,765.31
Revenue Accounts Receivable
111,280.52
$
44,596,092.54
Decreased by:
Payments to Chief Financial Officer
$
44,596,092.54
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Current Cash --Tax Collector
-63-
18700
Exhibit SA-3
Over-
Transferred
Balance
Added
Collections
Payments
To Tax
Balance
Year
Dec. 31, 2018
2019 Levy
Taxes
2018
2019
Applied
Cancelled
Title Liens
Dec. 31, 2019
2012
$
327.49
$
327.49
2013
4,277.22
4,277.22
2014
8,338.96
8,338.96
2015
8,776.68
8,776.68
2016
21,776.62
21,776.62
2017
2,660.39
$
1,557.13
1,103.26
2018
538,962.77
$
875.00
502,352.98
$
680.54
$
9,059.99
27,744.26
585,120.13
-
875.00
-
503,910.11
-
680.54
9,059.99
72,344.49
2019
$
44,660,955.80
$
351,870.05
43,679,608.45
$
28,224.15
93,848.37
25,751.13
481,653.65
$
585,120.13
$
44,660,955.80
$
875.00
$
351,870.05
$
44,183,518.56
$
28,224.15
$
94,528.91
$
34,811.12
$
553,998.14
Taxes Receivable
$
44,131,893.56
Senior Citizens and Veterans
51,625.00
$
44,183,518.56
Analysis of 2019 Property Tax Levy
Tax Yield:
General Property Tax
$
44,271,155.65
Added Taxes (54:4-63.1 et. seq.)
389,800.15
$
44,660,955.80
Tax Levy:
Local School District Tax
$
16,025,811.00
Regional School Tax
11,185,421.42
$
27,211,232.42
County Taxes:
County Tax
9,807,710.03
Due County for Added Taxes
113,422.61
9,921,132.64
Municipal Open Space Tax:
Municipal Open Space Tax:
588,124.10
Due Municipal Open Space for Added Taxes
6,786.02
594,910.12
Local Tax for Municipal Purposes
6,529,828.27
Add: Additional Tax Levied
403,852.35
6,933,680.62
$
44,660,955.80
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Taxes Receivable and Analysis of Property Tax Levy
For the Year Ended December 31, 2019
-64-
Exhibit SA-4
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Tax Title Liens
For the Year Ended December 31, 2019
Balance December 31, 2018
$
219,601.12
Increased by:
Transfers from Taxes Receivable
$
34,811.12
Prior Year Adjustments
9,030.12
Interest and Costs on Sale
1,749.58
45,590.82
265,191.94
Decreased by:
Collections
22,812.38
Balance December 31, 2019
$
242,379.56
18700
-65-
18700
Exhibit SA-5
Balance
Accrued
Balance
Dec. 31, 2018
In 2019
Collected
Dec. 31, 2019
Miscellaneous Revenue Anticipated:
Fines and Costs:
Municipal Court
$
8,980.76
$
172,517.44
$
169,645.42
$
11,852.78
Interest and Costs on Taxes
111,280.52
111,280.52
Energy Receipts Tax (P.L. 1997, Chapters 162 & 167)
414,809.00
414,809.00
Garden State Trust Fund
5,939.00
5,939.00
Kingsway Regional High School District Interlocal
57,000.00
57,000.00
Recreation Other Expenses
8,000.00
8,000.00
Police Coverage and Protection
664,878.54
664,878.54
Reserve to Pay Debt Service
88,588.65
88,588.65
Debt Service Contributions from Municipal Open Space Fund
175,000.00
175,000.00
Interfund Receivable - Open Space Fund
330,000.00
330,000.00
$
8,980.76
$
2,028,013.15
$
2,025,141.13
$
11,852.78
Chief Financial Officer
$
1,495,271.96
Tax Collector
111,280.52
Interfunds
88,588.65
Liquidation of Interfund Receivable
330,000.00
$
2,025,141.13
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Revenue Accounts Receivable
For the Year Ended December 31, 2019
-66-
Exhibit SA-6
Balance
After
Balance
Encumbered
Reserved
Modification
Disbursed
Lapsed
OPERATIONS -- WITHIN "CAPS"
General Administration
Salaries and Wages
$
0.02
$
0.02
$
0.02
Other Expenses
1,135.82
1,135.82
$
999.81
136.01
Mayor and Township Committee:
Other Expenses
24.13
24.13
24.13
Municipal Clerk:
Salaries and Wages
6,970.53
6,970.53
6,970.53
Other Expenses
$
114.41
65.10
179.51
151.37
28.14
Financial Administration:
Other Expenses
5,495.85
8,816.29
10,812.14
9,615.74
1,196.40
Audit Services:
Other Expenses
862.00
862.00
862.00
Revenue Administration:
Salaries and Wages
0.04
0.04
0.04
Other Expenses
50.00
1.18
51.18
50.00
1.18
Legal Services and Costs:
Other Expenses
4,457.80
43,350.98
27,808.78
27,805.69
3.09
Engineering Services and Costs:
Other Expenses
3,500.00
20,031.64
16,031.64
8,350.33
7,681.31
Economic Development:
Other Expenses
15.06
15.06
15.06
Planning Board
Miscellaneous Other Expenditures
8,191.50
3,534.37
15,725.87
15,461.90
263.97
Zoning Board:
Other Expenses
380.00
380.00
380.00
Office of Community Development
Other Expenses
9.00
9.00
9.00
Insurance:
General Liability
1,288.00
1,288.00
878.00
410.00
Worker's Compensation
974.19
974.19
974.19
Employee Group Health
2,486.49
5,439.50
7,925.99
7,925.99
Employee Health Benefits - Optional Cash Payment
27,953.41
27,953.41
11,644.89
16,308.52
Department of Public Safety:
Police:
Salaries and Wages
55,234.41
36,234.41
36,234.41
Other Expenses
69,669.28
22,901.10
92,570.38
81,064.23
11,506.15
Office of Emergency Management
Salaries and Wages
192.25
192.25
192.25
Other Expenses
641.25
15.75
657.00
657.00
Aid to Volunteer Fire Company
Other Expenses
29,609.86
540.04
30,149.90
18,999.25
11,150.65
Municipal Prosecutor:
Salaries and Wages
0.07
0.07
0.07
Department of Public Works:
Streets and Road Maintenance
Other Expenses
9,945.13
6,694.82
16,639.95
14,402.85
2,237.10
Snow Removal
Salaries and Wages
10,000.00
10,000.00
4,966.89
5,033.11
Other Expenses
9,832.16
68,136.43
122,968.59
108,103.31
14,865.28
Sanitation
Other Expenses
51,217.05
61,500.32
112,717.37
67,185.05
45,532.32
Public Building and Grounds
Salaries and Wages
6,164.00
6,164.00
6,164.00
Other Expenses
5,710.60
153.54
5,864.14
5,493.28
370.86
Health & Human Services Functions:
Public Health Services
Salaries and Wages
0.02
0.02
0.02
Other Expenses
186.10
186.10
186.10
Environmental Committee
Other Expenses
350.00
2,272.50
2,622.50
2,622.50
(Continued)
Dec. 31, 2018
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Appropriation Reserves
For the Year Ended December 31, 2019
Balance
-67-
Exhibit SA-6
Balance
After
Balance
Encumbered
Reserved
Modification
Disbursed
Lapsed
Dec. 31, 2018
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Appropriation Reserves
For the Year Ended December 31, 2019
Balance
OPERATIONS -- WITHIN "CAPS" (CONT'D)
Vehicle Maintenance:
Other Expenses
$
4,954.05
$
10,488.92
$
15,442.97
$
10,225.54
$
5,217.43
Recreation Services and Program
Other Expenses
5,346.85
229.08
5,575.93
3,666.34
1,909.59
Celebration of Public Events
Other Expenses
389.22
373.01
762.23
389.22
373.01
Unclassified:
Gasoline
9,091.38
8,341.38
3,550.53
4,790.85
Electricity
4,814.42
3,448.13
15,762.55
15,762.55
Telephone
874.74
6,452.56
4,827.30
1,877.23
2,950.07
Street Lighting
94.99
11,130.99
13,725.98
13,725.98
Water/Fire Hydrant Service
869.36
32,793.06
29,662.42
24,564.62
5,097.80
Heating
658.38
1,408.38
1,381.99
26.39
Cable TV & Internet
221.05
426.05
647.10
207.01
440.09
Landfill/Solidwaste Disposal Costs
Other Expenses
28,542.57
47,193.54
75,736.11
73,660.43
2,075.68
Salary and Wage Adjustment Account
Salaries and Wages
291.58
291.58
291.58
Municipal Court:
Salaries and Wages
888.41
888.41
888.41
Other Expenses
266.00
5,372.06
5,638.06
1,536.51
4,101.55
Public Defender:
Salaries and Wages
2,625.00
2,625.00
2,625.00
Total Operations Within "CAPS"
248,932.63
485,016.76
736,449.39
532,746.54
203,702.85
DEFERRED CHARGES AND STATUTORY
EXPENDITURES-WITHIN CAPS
Statutory Expenditures:
Contribution to:
Social Security System (O.A.S.I.)
4,660.33
2,160.33
2,160.33
Defined Contributions Retirement Program
264.81
264.81
264.81
Public Employee Retirement System
0.98
0.98
0.98
Total Deferred Charges and Statutory
Expenditures - Within "CAPS"
-
4,926.12
2,426.12
2,160.33
265.79
Total General Appropriations for
Municipal Purposes within "CAPS"
248,932.63
489,942.88
738,875.51
534,906.87
203,968.64
OPERATIONS EXCLUDED FROM "CAPS"
Borough of Swedesboro
Police Coverage and Protection
Other Expenses
25,110.50
25,110.50
-
25,110.50
Grand Total
$
248,932.63
$
515,053.38
$
763,986.01
$
534,906.87
$
229,079.14
Cash Disbursements
$
507,756.61
Accounts Payable
27,150.26
$
534,906.87
-68-
Exhibit SA-7
Balance December 31, 2018
$
12,329.30
Increased by:
Received from State of New Jersey
$
50,375.00
Deductions Disallowed by Collector - 2019 Taxes
250.00
Deductions Disallowed by Collector - 2018 Taxes
875.00
51,500.00
63,829.30
Decreased by:
Deductions per Tax Billing:
Senior Citizens
11,875.00
Veterans
38,750.00
Deductions Allowed by Collector - 2019 Taxes
1,250.00
51,875.00
Balance December 31, 2019
$
11,954.30
Analysis of Amount Realized:
Senior Citizens' and Veterans' Deductions Per Tax Billings
$
50,625.00
Senior Citizens' and Veterans'
Deductions Allowed by Tax Collector - 2019
1,250.00
$
51,875.00
Less:
Senior Citizens' and Veterans'
Deductions Disallowed by Tax Collector - 2019
250.00
$
51,625.00
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Due State of New Jersey - Veterans' And Senior Citizens' Deductions
-69-
Exhibit SA-8
Balance December 31, 2018
(2019 Taxes)
$
351,870.05
Increased by:
Collection (2020 Taxes)
274,340.77
626,210.82
Decreased by:
Application to 2019 Taxes
351,870.05
Balance December 31, 2019
(2020 Taxes)
$
274,340.77
Exhibit SA-9
Balance December 31, 2018
$
48,617.03
Increased by:
Overpayments Received
55,765.31
104,382.34
Decreased by:
Refunded
$
42,522.61
Refunded - Accounts Payable
13,040.72
Overpayments Applied
28,224.15
Overpayments Canceled
750.58
84,538.06
Balance December 31, 2019
$
19,844.28
For the Year Ended December 31, 2019
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Tax Overpayments
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Prepaid Taxes
-70-
Exhibit SA-10
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of County Taxes Payable
For the Year Ended December 31, 2019
Increased by:
2019 Levy -
County General
$
8,660,470.89
County Library
613,657.10
County Open Space
533,582.04
$
9,807,710.03
Decreased by:
Disbursements
$
9,807,710.03
Exhibit SA-11
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Amount Due to County for Added and Omitted Taxes
For the Year Ended December 31, 2019
Balance December 31, 2018
$
99,234.38
Increased by:
Added Taxes -- 2019 (R.S. 54:4-63.1 et seq.)
113,422.61
212,656.99
Decreased by:
Disbursements
99,435.97
Balance December 31, 2019
$
113,221.02
18700
-71-
Exhibit SA-12
Balance December 31, 2018
School Tax Payable
$
2,776,955.47
Deferred School Tax Payable
5,410,504.32
$
8,187,459.79
Increased by:
Levy-School Year July 1, 2019 to June 30, 2020
16,025,811.00
24,213,270.79
Decreased by:
Disbursements
16,200,364.99
Balance December 31, 2019
School Tax Payable
2,602,401.48
Deferred School Tax Payable
5,410,504.32
$
8,012,905.80
2019 Liability for Local School Tax:
Tax Paid
$
16,200,364.99
Tax Payable December 31, 2019
2,602,401.48
18,802,766.47
Less:
Tax Payable December 31, 2018
2,776,955.47
Amount Charged to 2019 Operations
$
16,025,811.00
Exhibit SA-13
Increased by:
Levy -- Calendar Year
$
11,185,421.42
Decreased by:
Disbursements
$
11,185,321.02
Prepayments Applied
100.40
$
11,185,421.42
18700
TOWNSHIP OF WOOLWICH
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Regional High School District Tax
CURRENT FUND
Statement of Local School District Tax
For the Year Ended December 31, 2019
-72-
Exhibit SA-14
Increased by:
Levy
$
588,124.10
Decreased by:
Disbursements
$
588,124.10
Exhibit SA-15
Increased by:
Added Taxes -- 2019 (R.S. 54:4-63.1 et seq.)
$
6,786.02
Decreased by:
Disbursements
$
5,875.90
Net with Interfund Receivable
910.12
$
6,786.02
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Amount Due to Municipal Open Space for Added and Omitted Taxes
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
CURRENT FUND
Statement of Municipal Open Space Tax
-73-
18700
Exhibit SA-16
Balance December 31, 2018
$
74,644.57
Increased by:
Grant Revenues Deposited to Current Fund
$
234,204.62
Local Match Due from Current Fund
2,000.00
Grant Receivable Adjustment
42,500.00
278,704.62
353,349.19
Decreased by:
Grant Expenditures paid by Current Fund
78,394.89
Balance December 31, 2019
$
274,954.30
TOWNSHIP OF WOOLWICH
FEDERAL AND STATE GRANT FUND
Statement of Due Current Fund
For the Year Ended December 31, 2019
-74-
Exhibit SA-17
Balance
Balance
Dec. 31, 2018
Accrued
Received
Adjustments
Dec. 31, 2019
Federal Grants
Click It or Ticket Grant
$
1,100.00
$
1,100.00
Distracted Driving Grant
2,420.00
2,420.00
CDBG
$
13,239.20
$
13,239.20
Total Federal Grants
13,239.20
3,520.00
3,520.00
-
13,239.20
State Grants:
Alcohol Education Rehabilitation and
Enforcement Grant
1,165.43
1,165.43
Body Armor Grant
515.56
2,774.97
2,774.97
515.56
Clean Communities Program
1,159.63
24,009.70
24,009.70
1,159.63
Drive Sober or Get Pulled Over
3,630.00
3,630.00
Drunk Driving Enforcement Fund
1,616.60
1,616.60
Municipal Alliance Grant
13,635.20
8,000.00
6,619.00
15,016.20
Recycling Tonnage Grant
46,950.27
46,950.27
Sustainable Jersey Small Grant
10,862.85
10,862.85
NJDOT - Bikeways
170,000.00
$
(170,000.00)
NJDOT - Shared Use Path
66,547.00
145,535.25
127,500.00
48,511.75
DVRPC - Master Plan
25,370.66
25,370.66
NJDEP - Recreation Trails Program
6,000.00
6,000.00
Total State Grants
295,707.50
86,530.37
230,684.62
(42,500.00)
109,053.25
$
308,946.70
$
90,050.37
$
234,204.62
$
(42,500.00)
$
122,292.45
18700
Program
TOWNSHIP OF WOOLWICH
FEDERAL AND STATE GRANT FUND
Statement of Federal and State Grants Receivable
For the Year Ended December 31, 2019
-75-
Exhibit SA-18
Federal and
Realized as
Balance
State Grants
Revenue in
Balance
Dec. 31, 2018
Receivable
2019 Budget
Dec. 31, 2019
Federal Grants
Click It or Ticket Grant
$
1,100.00
$
1,100.00
Distracted Driving Grant
2,420.00
2,420.00
Total Federal Grants
-
3,520.00
-
3,520.00
State Grants:
Alcohol, Education, Rehabilitation and
Enforcement Grant
1,165.43
1,165.43
Body Armor Grant
2,774.97
$
2,774.97
Clean Communities program
24,009.70
24,009.70
Drive Sober or Get Pulled Over
3,630.00
3,630.00
Municipal Alliance Grant
8,000.00
8,000.00
Recycling Tonnage Grant
$
13,582.41
46,950.27
13,582.41
46,950.27
Total State Grants
13,582.41
86,530.37
24,357.38
75,755.40
$
13,582.41
$
90,050.37
$
24,357.38
$
79,275.40
18700
Program
TOWNSHIP OF WOOLWICH
FEDERAL AND STATE GRANT FUND
Statement of Reserve for Federal and State Grants -- Unappropriated
For the Year Ended December 31, 2019
-76-
Exhibit SA-19
Transferred
from
2019 Budget
Balance
Encumbered
Appropriation
Disbursed
Encumbered
Dec. 31, 2019
Federal Grants
Community Development Block Grant
$
1,145.83
$
1,145.83
Municipal Stormwater Regulation Grant
588.50
588.50
NJDEP - Recreation Trails Program
24,000.00
24,000.00
Total Federal Grants
25,734.33
-
-
-
-
25,734.33
State Grants:
Alcohol, Education, Rehabilitation and
Enforcement Grant
5,968.52
$
1,028.61
4,939.91
Body Armor Grant
2,099.69
$
2,774.97
2,774.97
2,099.69
Clean Communities Program
46,947.99
$
4,650.00
20,892.02
$
3,805.00
26,900.97
Drunk Driving Enforcement Fund
1,180.08
1,180.08
DVRPC - Master Plan
621.46
621.46
Jersey Fresh Grant
600.00
600.00
Municipal Alliance Grant
29,584.05
10,000.00
10,474.46
700.00
28,409.59
Recycling Tonnage Grant
42,842.76
13,582.41
42,044.75
14,380.42
SHARE Grant
19,918.99
19,918.99
Drive Sober or Get Pulled Over
2,475.00
2,475.00
Sustainable Jersey Small Grant
3,215.00
3,215.00
NJDEP Recreational Trails Program
6,000.00
6,000.00
NJDOT - Shared Use Path
194,047.00
194,047.00
NJDOT - Bikeways
104,500.00
7,123.99
111,623.99
Total State Grants
459,379.08
12,395.45
26,357.38
78,394.89
4,505.00
415,232.02
$
485,113.41
$
12,395.45
$
26,357.38
$
78,394.89
$
4,505.00
$
440,966.35
Realized as Revenue in 2019 Budget
$
24,357.38
Local Match Due From Current Fund
2,000.00
$
26,357.38
Balance
Program
18700
Dec. 31, 2018
TOWNSHIP OF WOOLWICH
FEDERAL AND STATE GRANT FUND
Statement of Reserve for Federal and State Grants -- Appropriated
For the Year Ended December 31, 2019
Balance
-77-
SUPPLEMENTAL EXHIBITS
TRUST FUND
-78-
Exhibit SB-1
Animal Control
Open Space
Other Trust
Balance December 31, 2018
$
6,586.44
$
873,801.71
$
2,370,388.02
Increased by Receipts:
Animal Control Fees
$
4,356.00
State Dog License Fees
1,170.00
Due Current Fund
$
4,678.74
Reserve for Open Space Fund
$
600,243.32
Due to State of New Jersey
Uniform Construction Code Training Fees
26,541.00
Miscellaneous Trust Reserves
7,435,824.98
Reserve for Uniform Construction Code Official
437,688.57
5,526.00
600,243.32
7,904,733.29
12,112.44
1,474,045.03
10,275,121.31
Decreased by Disbursements:
Due to State of New Jersey
1,162.60
Animal Control Fund Expenditures
4,610.42
Due Current Fund
330,000.00
Due General Capital Fund
50,000.00
Municipal Open Space Fund Appropriations:
2019 Appropriations
468,116.24
2018 Appropriations
88,183.75
Due to State of New Jersey
Uniform Construction Code Training Fees
24,899.00
Miscellaneous Trust Reserves
5,718,786.80
Reserve for Uniform Construction Code Official
459,391.99
5,773.02
936,299.99
6,203,077.79
Balance December 31, 2019
$
6,339.42
$
537,745.04
$
4,072,043.52
18700
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Trust Cash - Chief Financial Officer
-79-
Exhibit SB-2
Balance December 31, 2018
$
108,959.09
Increased by Receipts:
Miscellaneous Reserves
234,152.89
343,111.98
Decreased by Disbursements:
Miscellaneous Reserves
167,554.89
Balance December 31, 2019
$
175,557.09
18700
TOWNSHIP OF WOOLWICH
TRUST FUND
For the Year Ended December 31, 2019
Statement of Trust Cash - Tax Collector
-80-
Exhibit SB-3
Balance December 31, 2019 and 2018
$
94.24
Exhibit SB-4
Increased by:
2019 State License Fees
$
1,170.00
Decreased by:
Due to State of New Jersey - Dog Fund
$
1,162.60
Adjustment - Due to State of NJ
4.20
1,166.80
Balance December 31, 2019
$
3.20
18700
TOWNSHIP OF WOOLWICH
TRUST FUND
Schedule of Amount Due to Current Fund -- Animal Control Fund
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Amount Due to State of New Jersey - Department of Health
For the Year Ended December 31, 2019
-81-
Exhibit SB-5
Balance December 31, 2018
$
6,492.20
Increased by:
Dog License Fees Collected
$
3,936.00
Late Fees Collected
420.00
Adjustment - Due to State of NJ
4.20
4,360.20
10,852.40
Decreased by:
Animal Control Fund Expenditures - Dog Fund
4,610.42
Encumbrances
4,659.17
9,269.59
Balance December 31, 2019
$
1,582.81
Year
Amount
2018
$
5,843.00
2017
6,777.00
$
12,620.00
License Fees Collected
For the Year Ended December 31, 2019
18700
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Reserve for Animal Control Fund
-82-
Exhibit SB-6
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Due Current Fund -- Municipal Open Space Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
$
335,042.50
Decreased by:
Disbursed to Current Fund
$
330,000.00
Added Open Space Taxes not Transferred
910.12
330,910.12
Balance December 31, 2019
$
4,132.38
Exhibit SB-7
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Due General Capital Fund -- Municipal Open Space Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
$
204,356.64
Decreased by:
Disbursed to General Capital Fund
50,000.00
Balance December 31, 2019
$
154,356.64
18700
-83-
18700
Exhibit SB-8
Balance
Dec. 31, 2018
Budget After
Paid or
Balance
Encumbered
Modification
Charged
Lapsed
Development of Lands for Recreation & Conservation
$
185,996.73
$
185,996.73
$
88,183.75
$
97,812.98
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Appropriation Reserves - Municipal Open Space Fund
For the Year Ended December 31, 2019
-84-
Exhibit SB-9
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Reserve for Future Use - Municipal Open Space Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
$
148,405.84
Increased by:
Amount to be Raised by Taxation
$
594,910.12
Miscellaneous Revenues Not Anticipated
6,243.32
Unexpended Balance of Appropriation Reserves
97,812.98
698,966.42
847,372.26
Decreased by:
2019 Budget Appropriations:
Development of Lands for Recreation & Conversation
450,000.00
Debt Service
175,000.00
625,000.00
Balance December 31, 2019
$
222,372.26
18700
-85-
Exhibit SB-10
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Due Current Fund -- Trust Other Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
$
81,029.88
Increased by:
Interest Earned on Investments - Treasurer
4,678.74
85,708.62
Decreased by:
Municipal Functions Receipt Deposited to Current Fund
$
1,847.34
Parks and Recreation Receipts Deposited to Current Fund
200.00
2,047.34
Balance December 31, 2019
$
83,661.28
18700
-86-
Exhibit SB-11
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Due to State - Uniform Construction Code Training Fees
For the Year Ended December 31, 2019
Balance December 31, 2018
$
4,609.00
Increased by:
Receipts
26,541.00
31,150.00
Decreased by:
Disbursements
24,899.00
Balance December 31, 2019
$
6,251.00
18700
-87-
18700
Exhibit SB-12
TOWNSHIP OF WOOLWICH
TRUST - OTHER FUND
Statement of Miscellaneous Trust Reserves
For the Year Ended December 31, 2019
Balance
Year-End
Balance
Dec. 31, 2018
Receipts
Disbursements
Encumbrances
Adjustments
Dec. 31, 2019
Public Defender
$
3,351.26
$
3,645.00
$
2,775.00
$
4,221.26
Payroll Deductions Payable
13,709.56
4,939,027.73
4,917,571.29
$
(1,000.00)
34,166.00
Site Plan Review Escrow
774,150.38
2,009,771.59
373,381.22
$
314,924.71
2,095,616.04
Municipal Functions Donations
35,677.96
33,547.51
21,248.70
9,269.63
38,707.14
Police Overtime
65,964.31
340,116.37
213,351.23
192,729.45
P.O.A.A. - Parking Fines
548.61
54.00
602.61
Police Forfeited Funds
4,496.61
2,864.98
2.00
7,359.59
Developer's Open Space
241.01
2.85
243.86
Developer's Tree Compensation
324,196.25
1,130.54
11,877.00
9,350.00
304,099.79
Snow Removal
3,210.18
100,000.00
43,547.49
8,501.86
51,160.83
Developer's Recreation Fees
112,071.51
842.40
38,964.96
39,656.00
34,292.95
COAH Fees
333,357.11
31,450.76
2.00
364,805.87
Election
850.00
13,200.00
12,800.00
1,250.00
Woolwich Recreation Trust
21,584.63
85,238.07
78,375.42
2,790.54
25,656.74
Unemployment Trust
3,619.05
27.92
4,624.87
1,000.00
22.10
Deposits for Redemption of Tax Title Liens
9,936.71
114,552.89
114,554.89
9,934.71
Tax Sale Premiums
99,022.38
119,600.00
53,000.00
165,622.38
Dedicated Trust Other
21.76
21.76
$
1,805,987.52
$
7,795,094.37
$
5,886,341.69
$
577,222.19
$
-
$
3,137,518.01
Treasurer
$
7,435,824.98
$
5,718,786.80
Tax Collector
234,152.89
167,554.89
Due from Contractor
123,069.16
Due To Current Fund
2,047.34
$
7,795,094.37
$
5,886,341.69
-88-
Exhibit SB-13
TOWNSHIP OF WOOLWICH
TRUST FUND
Statement of Reserve for Uniform Construction Code
For the Year Ended December 31, 2019
Balance December 31, 2018
$
687,720.71
Increased by:
Fees - Cash Receipts
437,688.57
1,125,409.28
Decreased by:
Expenditures:
Current Year Expenditures
$
459,391.99
Encumbrances Payable
1,786.38
461,178.37
Balance December 31, 2019
$
664,230.91
Analysis
Reserve
$
664,230.91
Encumbrances Payable
1,786.38
$
666,017.29
18700
-89-
SUPPLEMENTAL EXHIBITS
GENERAL CAPITAL FUND
-90-
18700
Exhibit SC-1
Balance December 31, 2018
$
90,986.20
Increased by Receipts:
Due Current Fund
$
646,071.06
Capital Improvement Fund
100,000.00
Due Municipal Open Space Trust Fund
50,000.00
Proceeds from Bond Anticipation Notes Issued
6,500,000.00
Bond Anticipation Note Premium
67,080.00
7,363,151.06
7,454,137.26
Decreased by Disbursements:
Due Current Fund
400,000.00
Improvement Authorizations
4,113,395.30
4,513,395.30
Balance December 31, 2019
$
2,940,741.96
For the Year Ended December 31, 2019
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of General Capital Cash - Chief Financial Officer
-91-
18700
Exhibit SC-2
Bond
Balance
Anticipation
Improvement
Balance
Dec. 31, 2018
Notes
Miscellaneous
Authorizations
Miscellaneous
From
To
Dec. 31, 2019
Fund Balance
$
21,172.13
$
67,080.00
$
88,252.13
Capital Improvement Fund
54,483.35
100,000.00
$
43,250.00
111,233.35
Encumbrances Payable
15,434,212.46
15,434,212.46
$
14,101,752.21
14,101,752.21
Due Current Fund
(77,190.13)
646,071.06
$
400,000.00
193,000.00
88,588.65
64,469.58
Due Municipal Open Space Trust Fund
(204,356.64)
50,000.00
(154,356.64)
Due Trust Other Fund - UCC
100,000.00
100,000.00
Due Grant Fund
127,500.00
127,500.00
Reserves for:
Reserve for Payment of Debt
88,588.65
88,588.65
Reserve for Developer's Deposits
173,465.05
173,465.05
Improvement Authorizations:
Ordinance
Number
2010-13
Russell Mill Road Phase 3 & 4
(100,370.60)
(100,370.60)
2010-25
Various Capital Improvements
$
12,638.37
12,638.37
2011-08
Public Works Equipment
505.20
505.20
2012-15
Field Drainage Improvements
12,485.00
12,485.00
2012-20
Public Works Garage
18,588.00
18,588.00
2014-03
Public Works & Fire Safety Equipment
13,105.15
10,000.00
3,104.70
0.45
2014-16
Acquisition of Real Property
17,160.50
17,160.50
2015-14
Public Works Equipment
2,542.82
2,542.82
2015-16
Roadway Improvements
1,021.63
552.46
1,574.09
2016-09
Acquisition of Transfer Development Rights
76,518.00
76,518.00
2016-10
Various Capital Improvements
8,952.85
16,284.79
55,620.33
63,423.73
471.46
2017-16
Various Roadway and Drainage Improvements
177,060.00
193,000.00
15,940.00
2017-19
Various Sewer Improvements
(15,246,654.59)
$
3,000,000.00
3,225,190.84
11,745,662.19
14,878,315.52
(12,339,192.10)
2018-05
Various Roadway Improvements
1.00
27,129.25
84,499.00
111,628.25
1.00
2018-09
Construction and Improvements of Open Space
for Recreation
(171,000.00)
2,500,000.00
123,026.88
776,475.30
314,502.18
1,744,000.00
2018-12
Various Capital Improvements
(258,722.00)
1,000,000.00
238,716.94
915,229.77
40,960.68
(371,708.03)
2019-11
Emergency Road and Drainage Repairs to Garwin
Road
234000.00
13,250.00
(220,750.00)
2019-14
Acquisition of Trash Carts
282,326.60
272,896.00
30,000.00
(525,222.60)
90,986.20
$
6,500,000.00
$
863,151.06
$
4,113,395.30
$
400,000.00
$
29,849,633.68
$
29,849,633.68
$
2,940,741.96
Transfers
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Analysis of General Capital Cash
For the Year Ended December 31, 2019
Receipts
Disbursements
-92-
18700
Exhibit SC-3
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Deferred Charges to Future Taxation -- Funded
For the Year Ended December 31, 2019
Balance December 31, 2018
$
15,124,419.43
Decreased by:
2019 Budget Appropriation to Pay
General Serial Bonds
$
1,015,000.00
Green Trust Loan Payable
30,061.92
1,045,061.92
Balance December 31, 2019
$
14,079,357.51
-93-
18700
Exhibit SC-4
Unexpended
Ordinance
Balance
2019
Balance
Financed by
Improvement
Number
Improvement Description
Dec. 31, 2018
Authorizations
Dec. 31, 2019
Notes
Expended*
Authorization
2017-19
Various Sewer Improvements
$
15,400,000.00
$
15,400,000.00
$
3,000,000.00
$
12,339,192.10
$
60,807.90
2018-09
Construction and Improvements of Open Space
for Recreation
3,000,000.00
3,000,000.00
2,500,000.00
500,000.00
2018-12
Various Capital Improvements
2,000,000.00
2,000,000.00
1,000,000.00
371,708.03
628,291.97
2019-11
Emergency Road and Drainage Repairs to
Garwin Road
$
251,750.00
251,750.00
220,750.00
31,000.00
2019-14
Acquisition of Trash Carts
570,000.00
570,000.00
525,222.60
44,777.40
$
20,400,000.00
$
821,750.00
$
21,221,750.00
$
6,500,000.00
$
13,456,872.73
$
1,264,877.27
Improvement Authorizations - Unfunded
$
3,008,877.27
Less Unexpended Proceeds of Bond Anticipation Notes Issued:
Ordinance Number 2018-09
1,744,000.00
$
1,264,877.27
* Includes Encumbrances Payable
Analysis of Balance
Dec. 31, 2019
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Deferred Charges to Future Taxation -- Unfunded
For the Year Ended December 31, 2019
-94-
18700
Exhibit SC-5
Balance December 31, 2018 (Due From)
$
77,190.13
Increased by:
Receipts deposited to Current Fund
$
193,000.00
Disbursed to Current Fund
400,000.00
593,000.00
670,190.13
Decreased by:
Received from Current Fund
646,071.06
Reserve for Debt Service Appropriated in Current Fund Budget
88,588.65
734,659.71
Balance December 31, 2019 (Due To)
$
64,469.58
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Due Current Fund
For the Year Ended December 31, 2019
-95-
18700
Exhibit SC-6
Balance December 31, 2018
$
363,156.12
Decreased by:
Cash Receipts Deposited to Current Fund
193,000.00
Balance December 31, 2019
$
170,156.12
Analysis:
New Jersey Department of Transportation - Russell Mill Road
$
170,156.12
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of State Aid Receivable
For the Year Ended December 31, 2019
-96-
18700
Exhibit SC-7
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Capital Improvement Fund
For the Year Ended December 31, 2019
Balance December 31, 2018
$
54,483.35
Increased by:
Budget Appropriation
100,000.00
154,483.35
Decreased by:
Appropriated to Finance Improvement Authorizations
43,250.00
Balance December 31, 2019
$
111,233.35
-97-
18700
Exhibit SC-8
Balance December 31, 2018
$
204,356.64
Decreased by:
Received from Open Space Trust Fund
50,000.00
Balance December 31, 2019
$
154,356.64
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Due Municipal Open Space Trust Fund
For the Year Ended December 31, 2019
-98-
18700
Exhibit SC-9
Ordinance
Prior Year
2019
Paid or
Current Year
Number
Improvement Description
Date
Funded
Unfunded
Encumbrances
Authorizations
Charged
Encumbrances
Funded
Unfunded
2010-13
Russell Mill Road Phase 3 & 4
5/17/10
$
420,000.00
$
69,785.52
$
4,070.50
$
4,070.50
$
69,785.52
2010-25a
Various Road Improvements
11/1/10
200,000.00
12,638.37
$
12,638.37
2011-08
Public Works Equipment
7/18/11
88,113.20
505.20
505.20
2012-15
Field Drainage Improvements
9/17/12
45,000.00
12,485.00
12,485.00
2012-20
Public Works Garage
12/3/12
324,797.71
18,588.00
18,588.00
2013-08
Various Capital Improvement and Equipment
9/16/13
380,000.00
7,099.14
7,099.14
2014-03
Public Works & Fire Safety Equipment
4/7/14
70,000.00
13,105.15
10,000.00
3,104.70
0.45
2014-16
Acquisition of Real Property
11/17/14
550,000.00
17,160.50
17,160.50
2015-14
Public Works Equipment
9/21/15
12,485.00
2,542.82
2,542.82
2015-16
Roadway Improvements
9/21/15
375,000.00
1,574.09
1,021.63
552.46
2016-09
Acquisition of Transfer Development Rights
8/1/16
2,100,000.00
76,518.00
76,518.00
2016-10
Various Capital Improvements
8/1/16
883,111.00
8,952.85
63,423.73
16,284.79
55,620.33
471.46
2017-16
Various Roadway and Drainage Impts.
8/21/17
193,000.00
193,000.00
177,060.00
15,940.00
2017-19
Various Sewer Improvements
12/18/17
15,400,000.00
$
153,345.41
14,878,315.52
3,225,190.84
11,745,662.19
$
60,807.90
2018-05
Various Roadway Improvements
5/7/18
147,000.00
1.00
111,628.25
27,129.25
84,499.00
1.00
2018-09
Construction and Improvements of Open
Space for Recreation
5/21/18
3,250,000.00
2,829,000.00
314,502.18
123,026.88
776,475.30
2,244,000.00
2018-12
Various Capital Improvements
8/20/18
2,125,000.00
1,741,278.00
40,960.68
238,716.94
915,229.77
628,291.97
2019-11
Emergency Road and Drainage Repairs to
Garwin Road
8/5/19
265,000.00
$
265,000.00
234,000.00
31,000.00
2019-14
Acquisition of Trash Carts
9/3/19
600,000.00
600,000.00
282,326.60
272,896.00
44,777.40
$
412,644.04
$
4,723,623.41
$
15,434,212.46
$
865,000.00
$
4,113,395.30
$
14,101,752.21
$
211,455.13
$
3,008,877.27
Capital Improvement Fund
$
43,250.00
Deferred Charges to Future Taxation - Unfunded
821,750.00
Cash Disbursements
$
4,113,395.30
$
865,000.00
$
4,113,395.30
Amount
Balance December 31, 2019
Balance December 31, 2018
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Improvement Authorizations
For the Year Ended December 31, 2019
Ordinance
-99-
18700
Exhibit SC-10
Maturities of
Amount of
Bonds Outstanding
Date of
Original
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2018
Decreased
Dec. 31, 2019
General Obligation Refunding
04/30/15
$
4,580,000.00
12/15/20
$
480,000.00
3.000%
Bonds - Series 2015
12/15/21
505,000.00
3.000%
12/15/22
515,000.00
3.000%
12/15/23
525,000.00
3.000%
12/15/24
535,000.00
3.000%
12/15/25
560,000.00
3.000%
$
3,580,000.00
$
460,000.00
$
3,120,000.00
General Obligation Bonds -
10/13/16
5,500,000.00
10/01/20
210,000.00
4.000%
Series 2016
10/01/21
215,000.00
4.000%
10/01/22
225,000.00
4.000%
10/01/23
230,000.00
4.000%
10/01/24
235,000.00
4.000%
10/01/25
240,000.00
4.000%
10/01/26
325,000.00
2.000%
10/01/27
325,000.00
2.000%
10/01/28
325,000.00
2.250%
10/01/29
325,000.00
2.250%
10/01/30
325,000.00
2.500%
10/01/31
325,000.00
2.500%
10/01/32
325,000.00
2.500%
10/01/33
325,000.00
2.750%
10/01/34
325,000.00
3.000%
10/01/35
325,000.00
3.000%
10/01/36
325,000.00
3.000%
5,135,000.00
205,000.00
4,930,000.00
(Continued)
December 31, 2019
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of General Serial Bonds
For the Year Ended December 31, 2019
-100-
18700
Exhibit SC-10
Maturities of
Amount of
Bonds Outstanding
Date of
Original
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2018
Decreased
Dec. 31, 2019
December 31, 2019
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of General Serial Bonds
For the Year Ended December 31, 2019
General Obligation Refunding
08/23/17
$
6,535,000.00
07/01/20
$
360,000.00
3.000%
Bonds - Series 2017
07/01/21
370,000.00
3.000%
07/01/22
380,000.00
3.000%
07/01/23
390,000.00
4.000%
07/01/24
410,000.00
4.000%
07/01/25
425,000.00
4.000%
07/01/26
445,000.00
4.000%
07/01/27
460,000.00
4.000%
07/01/28
480,000.00
4.000%
07/01/29
500,000.00
4.000%
07/01/30
520,000.00
4.000%
07/01/31
545,000.00
4.000%
07/01/32
560,000.00
4.000%
$
6,195,000.00
$
350,000.00
$
5,845,000.00
$
14,910,000.00
$
1,015,000.00
$
13,895,000.00
-101-
18700
Exhibit SC-11
GENERAL CAPITAL FUND
Statement of Green Trust Loan Payable
For the Year Ended December 31, 2019
Maturities of
Amount of
Loans Outstanding
Date of
Original
December 31, 2019
Interest
Balance
Balance
Purpose
Issue
Issue
Date
Amount
Rate
Dec. 31, 2018
Decreased
Dec. 31, 2019
Locke Avenue Park
1/4/02
$
150,000.00
2020
$
8,919.15
2021
9,098.43
2022
4,617.57
2.00%
$
31,378.56
$
8,743.40
$
22,635.16
Park Expansion
4/26/07
400,000.00
2020
21,747.02
2021
22,184.13
2022
22,630.04
2023
23,084.91
2024
23,548.91
2025
24,022.24
2025
24,505.11
2.00%
183,040.87
21,318.52
161,722.35
$
214,419.43
$
30,061.92
$
184,357.51
TOWNSHIP OF WOOLWICH
-102-
18700
Exhibit SC-12
GENERAL CAPITAL FUND
Statement of Bond Anticipation Notes
For the Year Ended December 31, 2019
Date of
Ordinance
Original
Date
Maturity
Interest
Balance
Number
Improvement Description
Issue
of Issue
Date
Rate
Increased
Dec. 31, 2019
2017-19
Various Sewer Improvements
6/5/19
6/5/19
6/5/20
2.75%
$
3,000,000.00
$
3,000,000.00
2018-09
Construction and Improvements of Open Space
for Recreation
6/5/19
6/5/19
6/5/20
2.75%
2,500,000.00
2,500,000.00
2018-12
Various Capital Improvements
6/5/19
6/5/19
6/5/20
2.75%
1,000,000.00
1,000,000.00
$
6,500,000.00
$
6,500,000.00
TOWNSHIP OF WOOLWICH
-103-
18700
Exhibit SC-13
TOWNSHIP OF WOOLWICH
GENERAL CAPITAL FUND
Statement of Bonds and Notes Authorized But Not Issued
For the Year Ended December 31, 2019
Ordinance
Balance
2019
Balance
Number
Improvement Description
Dec. 31, 2018
Authorizations
Issued
Dec. 31, 2019
2017-19
Various Sewer Improvements
$
15,400,000.00
$
3,000,000.00
$
12,400,000.00
2018-09
Construction and Improvements of Open Space for Recreation
3,000,000.00
2,500,000.00
500,000.00
2018-12
Various Capital Improvements
2,000,000.00
1,000,000.00
1,000,000.00
2019-11
Emergency Road and Drainage Repairs to Garwin Road
$
251,750.00
251,750.00
2019-14
Acquisition of Trash Carts
570,000.00
570,000.00
$
20,400,000.00
$
821,750.00
$
6,500,000.00
$
14,721,750.00
-104-
PART 2
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31, 2019
-105-
18700
TOWNSHIP OF WOOLWICH
Schedule of Findings and Recommendations
For the Year Ended December 31, 2019
Schedule of Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to
the financial statements that are required to be reported in accordance with Government Auditing Standards and
with audit requirements as prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey.
Finding No. 2019-001
Pursuant to N.J.A.C. 5:30-5.7, the general ledger, together with the books of original entry and supporting subsidiary
ledgers, shall constitute a complete accounting system which all local units shall have and maintain. Good internal
control practices dictate that a complete and accurate general ledger should be maintained for each fund to ensure
adequate control over the preparation of financial statements including the related footnotes.
Condition
Closing and adjusting audit entries were not posted to the general ledger for the year ended December 31, 2018.
In addition, reconciled cash balances for the current, general capital, open space, payroll, and developers’
recreation accounts did not agree with the general ledger account balances as of December 31, 2019.
Context
Adjustments were required to balance the current, general capital, open space, payroll, and developers’ recreation
general ledgers for the year ended December 31, 2019.
Effect
Without a properly maintained general ledger system, the immediate and current identification of assets, liabilities,
revenues, expenditures and fund balance cannot be achieved.
Cause
Proper internal control policies and procedures over financial transactions are not in place to properly maintain the
general ledger and corresponding subsidiary ledgers.
Recommendation
That the general ledger for each fund be accurately and completely maintained to ensure adequate control over the
preparation of financial statements including the related footnotes.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
-106-
18700
TOWNSHIP OF WOOLWICH
Schedule of Findings and Recommendations
For the Year Ended December 31, 2019
Schedule of Financial Statement Findings (Cont'd)
Finding No. 2019-002
Criteria or Specific Requirement
N.J.A.C. 5:30-5.6 requires that municipalities maintain a fixed asset accounting system that shall include asset
descriptions, estimated or historical costs and other such information as shall be required by the governing body
and updated each year with any additions or deletions. Proper internal control practices also dictate that complete
and accurate records should be maintained to ensure adequate control over the preparation of the financial
statements including the related footnotes.
Condition
The Township did not maintain a fixed asset accounting system in accordance with N.J.A.C. 5:30-5.6.
Context
The Township does not maintain a complete fixed asset accounting system as required by State Administrative
Code.
Effect
As a result of the non-existence of controls over the Township’s fixed asset records, the Statement of General Fixed
Assets Group of Accounts – Regulatory Basis could not be prepared and audited, resulting in a qualified opinion
being issued.
Cause
Internal control policies and procedures are not in place to properly maintain the fixed asset accounting system.
Recommendation
That internal control policies and procedures should be developed to properly maintain the general fixed asset
accounting system in accordance with N.J.A.C. 5:30-5.6.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
-107-
18700
TOWNSHIP OF WOOLWICH
Summary Schedule of Prior Year Audit Findings
and Recommendations as Prepared by Management
This section identifies the status of prior year findings related to the financial statements that are required to be
reported in accordance with Government Auditing Standards.
FINANCIAL STATEMENT FINDINGS
Finding No. 2018-001
Condition
Closing and adjusting entries are not being properly posted in the Township’s general ledger accounting system for
the Current Fund.
Current Status
A similar condition remains as Finding No. 2019-001.
Planned Corrective Action
See the corrective action plan detailed in Finding No. 2019-001.
Finding No. 2018-002
Condition
During the 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
The condition has been resolved.
Finding No. 2018-003
Condition
During the audit of the State and Federal Grant Fund and the General Capital Fund, it was noted that there were
several grant receivables that have been outstanding for several years.
Current Status
The condition has been resolved.
Finding No. 2018-004
Condition
During the audit, it was noted that quarterly pension payments for both PERS and PFRS were filed after the State’s
due date.
Current Status
The condition has been resolved.
-108-
18700
TOWNSHIP OF WOOLWICH
Summary Schedule of Prior Year Audit Findings
and Recommendations as Prepared by Management
FINANCIAL STATEMENT FINDINGS
Finding No. 2018-005
Condition
During the audit, it was noted that a fixed asset accounting system is not being maintained for land and buildings in
accordance with technical accounting directive no. 2 and N.J.A.C. 5:30-5.6.
Current Status
A similar condition remains as Finding No. 2019-002.
Planned Corrective Action
See the corrective action plan detailed in Finding No. 2019-002.
-109-
18700
TOWNSHIP OF WOOLWICH
Officials in Office and Surety Bonds
The following officials were in office during the period under audit:
Amount of
Name
Title
Surety Bond
Vernon R. Marino
Mayor
Natalie Matthias
Deputy Mayor
Daniel Battisti
Committee Member
Gina Marie Santore
Committee Member
Craig Frederick
Committee Member
Jane DiBella
Township Administrator/Clerk
(1)
William Pine
Chief Financial Officer
(1)
Kim Jaworski
Tax Collector
(1)
James Sabetta
Construction Code Official
(1)
Angela M. Kalnas
Court Administrator
(1)
William Golden
Court Magistrate
(1)
John A. Alice, Esq.
Solicitor
Remington & Vernick Engineers
Engineer
(1)
$1,000,000.00 per loss is covered by the Gloucester, Salem, Cumberland County Municipal Joint Insurance
Fund Excess Crime Policy, Public Employee Bond Declarations, and Excess Public Officials Bonds for all public
officials.
-110-
18700
APPRECIATION
I express my appreciation for the assistance and courtesies rendered by the Township’s officials during the course
of the audit.
Respectfully submitted,
BOWMAN & COMPANY LLP
Certified Public Accountants
& Consultants
Michael J. Welding
Certified Public Accountant
Registered Municipal Accountant
-111-
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