2010 Audit Report - The Borough of Pennsgrove

Transcription

2010 Audit Report - The Borough of Pennsgrove
BOROUGH OF PENNS GROVE
COUNTY OF SALEM
REPORT OF AUDIT
FOR THE YEAR ENDED DECEMBER 31, 2010
19400
BOROUGH OF PENNS GROVE
TABLE OF CONTENTS
Exhibit No.
Page No.
PART I
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
4
CURRENT FUND
A
A-1
A-2
A-3
Statements of Assets, Liabilities and Reserves and Fund Balances-Regulatory Basis
Statements of Operations and Changes in Fund Balance-Regulatory Basis
Statement of Revenues--Regulatory Basis
Statement of Expenditures--Regulatory Basis
6
8
10
13
TRUST FUND
B
Statements of Assets, Liabilities and Reserves--Regulatory Basis
18
GENERAL CAPITAL FUND
C
Statements of Assets, Liabilities and Reserves--Regulatory Basis
19
GENERAL FIXED ASSET ACCOUNT GROUP
F
Schedule of General Fixed Assets Group of Accounts
20
Notes to Financial Statements
21
SUPPLEMENTAL EXHIBITS
CURRENT FUND
SA-1
SA-2
SA-3
SA-4
SA-5
SA-6
SA-7
SA-8
SA-9
SA-10
SA-11
SA-12
SA-13
SA-14
SA-15
Statement of Current Cash
Statement of Taxes Receivable and Analysis of Property Tax Levy
Statement of Tax Title Liens
Statement of Revenue Accounts Receivable
Statement of Due from State of New Jersey--Senior Citizens' and Veterans'
Deductions
Statement of Appropriation Reserves
Statement of Tax Overpayments
Statement of Prepaid Taxes
Statement of Amount Due County for Added and Omitted Taxes
Statement of Due County Taxes
Statement of Regional School District Tax
Statement of Accounts Payable
Statement of Reserve for POAA
Statement of Reserve for Recycling
Statement of Reserve for Revaluation
i
35
36
37
38
39
40
42
42
43
43
44
45
45
45
46
19400
BOROUGH OF PENNS GROVE
TABLE OF CONTENTS (CONT'D)
Exhibit No.
Page No.
CURRENT FUND (CONT’D)
SA-16
SA-17
SA-18
SA-19
SA-20
SA-21
SA-22
Statement of Notes Payable--Special Emergencies
46
Statement of Loan Receivable—HUD Special Purpose Grant
47
Statement of Reserve for Program Income
47
Federal and State Grant Fund--Statement of Due to Current Fund
48
Federal and State Grant Fund—Statement of Federal and State Grants Receivable 49
Federal and State Grant Fund—Statement of Reserve for Federal and State Grants—
Unappropriated
50
Federal and State Grant Fund—Statement of Reserve for Federal and State Grants—
Appropriated
51
TRUST FUND
SB-1
SB-2
SB-3
SB-4
SB-5
SB-6
Statement of Trust Cash
Trust--Animal Control Fund--Statement of Reserve for Dog Fund Expenditures
Trust--Animal Control Fund--Statement of Due from Current Fund
Trust--Animal Control Fund--Statement of Due to State of New Jersey
Trust--Other Funds--Statement of Due from Current Fund
Trust--Other Funds--Statement of Changes in Reserves
53
54
54
55
56
57
GENERAL CAPITAL FUND
SC-1
SC-2
SC-3
SC-4
SC-5
SC-6
SC-7
SC-8
SC-9
SC-10
SC-11
Statement of General Capital Cash
Analysis of General Capital Cash
Statement of Reserve for Riverwalk Project
Statement of Deferred Charges to Future Taxation--Funded
Statement of Deferred Charges to Future Taxation--Unfunded
Statement of Capital Improvement Fund
Statement of Due from Current Fund
Statement of Improvement Authorizations
Statement of Green Trust Loan Payable
Statement of Bond Anticipation Notes
Statement of Bonds and Notes Authorized But Not Issued
59
60
61
61
62
63
63
64
65
67
68
PART 2
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
Schedule of Financial Statement Findings
70
Summary Schedule of Prior Year Audit Findings and Questioned Cosats
As Prepared by Management
72
OFFICIALS IN OFFICE AND SURETY BONDS
73
APPRECIATION
74
ii
BOROUGH OF PENNS GROVE
PART 1
REPORT OF AUDIT OF FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2010
-1-
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the Borough Council
Borough of Penns Grove
Penns Grove, New Jersey 08069
We have audited the accompanying statements of assets, liabilities, reserves and fund balance-- regulatory basis
of the various funds of the Borough of Penns Grove, in the County of Salem, State of New Jersey as of December
31, 2010 and 2009, and the related statements of operations and changes in fund balance-- regulatory basis for
the years then ended, and the related statement of revenues-- regulatory basis, statement of expenditures-regulatory basis for the year ended December 31, 2010. These financial statements are the responsibility of the
Borough's management. Our responsibility is to express an opinion on these financial statements based on our
audit.
Except as discussed in the following paragraph, 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 of material misstatement. An audit includes
consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Borough’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
The financial statements referred to above do not include the general fixed assets group of accounts, as required
by N.J.A.C. 5:30-5.6, because a record of general fixed assets was not maintained by the Borough. The amount
that should be recorded in the general fixed assets group of accounts is not known.
As described in Note 1, the financial statements previously referred to have been prepared in conformity with
accounting practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey, which differ from accounting principles generally accepted in the United States of America.
The effects on the financial statements of the variances between these regulatory accounting practices and
accounting principles generally accepted in the United States of America, although not reasonably determinable,
are presumed to be material.
-2-
-3-
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
The Honorable Mayor and
Members of the Borough Council
Borough of Penns Grove
Penns Grove, New Jersey 08069
We have audited the financial statements (regulatory basis) of the Borough of Penns Grove, in the County of
Salem, State of New Jersey, as of and for the year ended December 31, 2010, and have issued our report
thereon dated November 7, 2011, which indicated that the 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 the report, the opinion was qualified because the general fixed assets group of accounts
was not presented. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Borough of Penns Grove's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Borough’s
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Borough’s internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting
that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the
accompanying Schedule of Findings and Recommendations, we identified one deficiency in internal control over
financial reporting that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Borough’s financial
statements will not be prevented, or detected and corrected on a timely basis. We consider the following
deficiency described in the accompanying Schedule of Findings and Recommendations to be a material
weakness: 2010-04.
-4-
-5-
19400
Exhibit A
BOROUGH OF PENNS GROVE
CURRENT FUND
Statements of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
As of December 31, 2010 and 2009
Ref.
2010
2009
ASSETS:
Regular Fund:
Cash - Treasurer
Cash - Tax Collector
Due from State of New Jersey
SA-1
SA-1
SA-4
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes Receivable
Tax Title Liens
Foreclosed Property
Revenue Accounts Receivable
Due from Redevelopment Agency
Prepaid School Taxes
Due from Federal and State Grant Fund
Due from Trust -- Animal Control Fund
Due from Trust -- Other Funds
$
SA-2
SA-3
SA-10
SA-5
SA-1
SA-11
SA-17
SB-3
SB-5
Deferred Charges:
Special Emergencies
Revaluation
Tax Map Revisions
SA-14
SA-14
Total Regular Fund
Federal and State Grant Fund:
Cash
Due from Current Fund
Federal and State Grants Receivable
Loans Receivable
SA-1
SA-17
SA-18
SA-15
Total Federal and State Grant Fund
$
1,078,820.38
247,995.89
1,305.88
$
764,475.05
357,696.89
3,094.92
1,328,122.15
1,125,266.86
408,705.24
116,579.08
263,600.00
23,633.12
16,500.00
313.35
14,257.52
422,296.32
102,414.66
289,200.00
14,329.31
11,500.00
21,423.00
22,671.93
292.72
-
843,588.31
884,127.94
120,000.00
6,000.00
160,000.00
8,000.00
126,000.00
168,000.00
2,297,710.46
2,177,394.80
194,999.34
4,701.56
591,219.91
72,480.76
220,123.01
175,425.35
31,056.33
863,401.57
426,604.69
3,161,112.03
$
2,603,999.49
(Continued)
-6-
19400
Exhibit A
BOROUGH OF PENNS GROVE
CURRENT FUND
Statements of Assets, Liabilities, Reserves and Fund Balance -- Regulatory Basis
As of December 31, 2010 and 2009
Ref.
2010
2009
LIABILITIES, RESERVES AND FUND BALANCE:
Regular Fund:
Liabilities:
Appropriation Reserves
Reserve for Encumbrances
Accounts Payable
Tax Overpayments
Prepaid Taxes
Regional School Taxes Payable
Due to Federal and State Grant Fund
Due to Trust -- Other Funds
Due to General Capital Fund
Reserve for Tax Map Revisions
Reserve for LOSAP
Reserve for Revaluation
Notes Payable:
Special Emergencies
Revaluation
Tax Map Revisions
A-3, SA-6 $
A-3, SA-6
SA-12
SA-7
SA-8
SA-11
SA-17
SB-5
SC-7
A
A
SA-13
SA-14
SA-14
Reserves for Receivables and Other Assets
Fund Balance
A
A-1
Total Regular Fund
Federal and State Grant Fund:
Due to Current Fund
Due to General Capital Fund
Unappropriated Reserves
Appropriated Reserves
Reserve for Receivables
Reserve for Program Income
SA-17
A
SA-20
SA-19
SA-15
SA-16
Total Federal and State Grant Fund
$
183,379.25
68,525.92
15,873.07
1,110.23
57,310.88
233,443.42
4,701.56
56,292.57
10,000.00
9,613.91
48,922.50
173,580.27
143,054.54
7,476.88
6,283.81
67,968.67
1,850.33
36,377.71
10,000.00
9,613.91
58,922.50
120,000.00
6,000.00
160,000.00
8,000.00
815,173.31
683,128.62
843,588.31
638,948.84
884,127.94
610,138.24
2,297,710.46
2,177,394.80
40,000.00
3,798.28
634,491.51
72,480.76
112,631.02
22,671.93
40,000.00
8,543.47
187,982.12
31,056.33
136,350.84
863,401.57
426,604.69
3,161,112.03
The accompanying Notes to Financial Statements are an integral part of this statement.
-7-
$
$
2,603,999.49
19400
Exhibit A-1
BOROUGH OF PENNS GROVE
CURRENT FUND
Statements of Operations and Changes in Fund Balance -- Regulatory Basis
For the Years Ended December 31, 2010 and 2009
2010
Revenue and Other Income Realized:
Fund Balance Anticipated
Miscellaneous Revenues Anticipated
Receipts from Delinquent Taxes and Tax Title Liens
Receipts from Current Taxes
Non-Budget Revenue
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
Cancellation of Tax Overpayments
Cancellation of Accounts Payable
Cancellation of Grants (Net)
Interfunds Liquidated
Prepaid School Taxes Liquidated
$
500,760.00
3,528,554.05
435,304.66
5,587,124.75
54,638.20
2009
$
292,000.00
3,213,570.89
466,506.73
5,330,124.01
41,680.91
117,036.69
89,377.09
22,671.93
21,423.00
10,644.16
2,635.99
7,276.02
-
10,356,890.37
9,364,438.71
2,256,558.00
2,271,740.00
260,730.09
2,252,380.00
2,291,170.00
255,013.00
642,567.38
560,761.00
127,984.65
42,000.00
1,567,632.30
2,062,622.54
20,480.98
5,000.00
9,242.83
-
12,810.21
153,132.11
139,000.00
96,638.79
42,100.00
1,632,113.26
2,072,247.58
3,984.55
11,500.00
21,423.00
750.00
9,827,319.77
8,984,262.50
Statutory Excess of Fund Balance
529,570.60
380,176.21
Fund Balance January 1
610,138.24
521,962.03
1,139,708.84
902,138.24
500,760.00
292,000.00
Total Income
Expenditures:
Budget Appropriations:
Within "CAPS":
Operations:
Salaries and Wages
Other Expenses
Deferred Charges and Statutory Expenditures
Excluded from "CAPS":
Operations:
Salaries and Wages
Other Expenses
Capital Improvements
Municipal Debt Service
Deferred Charges
County Taxes
Regional High School Tax
Interfunds Created
Redevelopment Agency Receivable Created
Prepaid School Taxes Created
Refund of Prior Year Revenue
Prior Year Seniors' Citizens and Veterans' Deductions Disallowed
Total Expenditures
Decreased by:
Utilization as Anticipated Revenue
Fund Balance December 31
$
The accompanying Notes to Financial Statements are an integral part of this statement.
-8-
638,948.84
$
610,138.24
19400
Exhibit A-2
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2010
Budget
Surplus Anticipated
Miscellaneous Revenues
Licenses:
Alcoholic Beverages
Other
Fees and Permits
Fines and Costs - Municipal Court
Interest and Costs on Taxes
Payment in Lieu of Taxes
Penns Grove Gardens
Penn Village
Consolidated Municipal Property Tax Relief Aid
Energy Receipts Tax (P.L. 1997, Chapters 162 & 167)
Transitional Aid
Uniform Construction Code Fees
Public and Private Revenues Offset
N.J. Transportation Trust Fund Authority Act
NJ Senior Citizen and Disabled Resident
Transportation Act
Recycling Tonnage Grant
Body Armor Replacement
Over the Limit Under Arrest
Click it or Ticket 2010
Alcohol Rehab & Education Fund
Clean Communities
Small Cities Grant
Penns Grove Sewerage Authority Contribution
$
Anticipated
Special N.J.S.
40A: 4-87
500,760.00
$
500,760.00
4,000.00
86,000.00
60,000.00
140,000.00
75,000.00
5,757.76
104,314.00
84,982.53
124,388.32
73,386.98
123,000.00
42,000.00
526,736.00
718,118.00
1,000,000.00
22,000.00
152,000.00
42,500.00
526,736.00
718,118.00
1,000,000.00
6,443.39
150,761.00
150,761.00
1,757.76
18,314.00
24,982.53
(15,611.68)
(1,613.02)
29,000.00
500.00
(15,556.61)
79,295.32
4,979.64
866.27
4,400.00
4,000.00
100.55
8,074.29
400,000.00
37,450.00
26,582.98
3,528,554.05
41,772.98
400,000.00
435,304.66
35,304.66
Amount to be Raised by Taxes for
Support of Municipal Budget:
Local Tax for Municipal Purposes
including Reserve for Uncollected Taxes
2,407,781.00
2,572,422.22
164,641.22
Budget Totals
6,768,739.09
7,037,040.93
241,718.86
54,638.20
54,638.20
Receipts from Delinquent Taxes
$
$
26,582.98
Total Miscellaneous Revenues
52,712.34
4,979.64
866.27
4,400.00
4,000.00
100.55
8,074.29
400,000.00
37,450.00
Excess or
(Deficit)
Realized
3,460,198.09
26,582.98
Non-Budget Revenue
$ 6,768,739.09
$
26,582.98
$ 7,091,679.13
$
296,357.06
(Continued)
-9-
19400
Exhibit A-2
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2010
Analysis of Realized Revenue
Allocation of Current Tax Collections:
Revenue from Collections
Allocated to:
County and School Taxes
$
5,587,124.75
3,630,254.84
Amount for Support of Municipal Budget Appropriations
1,956,869.91
Add: Appropriation "Reserve for Uncollected Taxes"
615,552.31
Amount for Support of Municipal Budget Appropriations
Receipts from Delinquent Taxes:
Delinquent Tax Collections
Tax Title Lien Collections
Licenses - Other:
Vendor Licenses
Cat Licenses
Landlord Licenses
Fees and Permits:
Municipal Improvement Searches
Street Opening Permits
Park Rental
Yard Sale
Planning
Registrar Fees
Zoning Bd. of Adjustments
Taxi / Limousines
Housing
OPRA Fees
Police Clerk Fees
Miscellaneous
Cable Fee
Trash Collection
Clerks Interest
$
2,572,422.22
$
402,390.37
32,914.29
$
435,304.66
$
745.00
819.00
102,750.00
$
104,314.00
$
20.00
14,990.00
100.00
252.00
820.63
10,533.80
180.22
625.00
12,894.38
49.82
786.08
30,786.94
10,213.10
2,598.00
132.56
$
84,982.53
(Continued)
-10-
19400
Exhibit A-2
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Revenues -- Regulatory Basis
For the Year Ended December 31, 2010
Analysis of Non-Budget Revenues
Miscellaneous Revenue not Anticipated:
Senior Citizens' and Veterans' Deductions Admin. Fee
Interest on Investments and Deposits - Current Fund Account
Forfeited Tax Sale Premiums
Miscellaneous
Sale of Property
$
905.00
2,313.19
22,367.33
175.16
5,176.50
Total Treasurer -- Cash Collections
30,937.18
Journal Entries
Interest on Investments and Deposits - Trust - Animal Control Fund
Interest on Investments and Deposits - Trust - Other Funds
Interest on Investments and Deposits - General Capital Fund
Interest on Investments and Deposits - Federal and State Grant Fund
Forfeited Tax Sale Premiums
20.63
672.40
85.14
245.77
21,682.28
Total Treasurer
53,643.40
Interest Earnings
Miscellaneous - Tax Collector
774.80
220.00
Total Tax Collector -- Cash Collections
994.80
Total Non-Budget Revenues
$
The accompanying Notes to Financial Statements are an integral part of this statement.
-11-
54,638.20
19400
Exhibit A-3
BOROUGH OF PENNS GROVE
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2010
Appropriations
Budget After
Budget
Modification
OPERATIONS -- WITHIN "CAPS"
General Government Functions
Mayor and Council:
Salaries and Wages
Other Expenses
Municipal Clerk:
Salaries and Wages
Other Expenses
Financial Administration:
Salaries and Wages
Other Expenses
Audit Services:
Other Expenses
Tax Assessment Administration:
Salaries and Wages
Other Expenses
Revenue Administration:
Other Expenses
Liquidation of Tax Title Liens and Foreclosed Property:
Other Expenses
Legal Services and Costs:
Other Expenses
Economic Development Agencies:
Salaries and Wages
Other Expenses
Engineering Services and Costs:
Other Expenses
Land Use Administration
Planning Board:
Salaries and Wages
Other Expenses
Insurance
General Liability
Workers Compensation
Employee Group Health
Unemployment Insurance
Accumulated Leave Compensation
Other Expenses
$
27,060.00
2,000.00
$
25,060.00
1,000.00
Expended
Paid or
Charged
$
24,961.74
366.00
Encumbered
Reserved
$
$
100.00
98.26
534.00
80,000.00
24,650.00
78,080.00
24,650.00
71,861.26
24,310.03
205.00
6,218.74
134.97
110,900.00
15,000.00
110,900.00
15,000.00
105,131.36
10,360.55
921.52
5,768.64
3,717.93
42,000.00
42,000.00
42,000.00
15,029.00
2,175.00
15,029.00
2,695.00
14,590.32
2,031.62
504.00
438.68
159.38
6,375.00
7,775.00
6,482.81
7,000.00
1,000.00
93,000.00
123,000.00
121,600.61
500.00
22,325.00
500.00
34,325.00
19,825.00
11,270.00
500.00
3,230.00
40,500.00
38,500.00
9,788.88
26,700.00
2,011.12
5,465.00
9,000.00
5,465.00
9,000.00
5,463.60
1,525.00
1.40
7,475.00
142,494.00
236,303.00
957,263.00
8,300.00
142,494.00
236,303.00
957,263.00
8,300.00
142,494.00
231,803.00
956,678.72
7,178.98
4,500.00
584.28
1,121.02
4,000.00
4,000.00
4,000.00
Unexpended
Balance
Canceled
1,292.19
1,000.00
1,399.39
(Continued)
-12-
19400
Exhibit A-3
BOROUGH OF PENNS GROVE
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2010
Appropriations
Budget After
Budget
Modification
Public Safety Functions
Fire:
Fire Hydrant Service
Other Expenses
Police:
Salaries and Wages
Other Expenses
Aid to Ambulance:
Other Expenses
Aid to YMCA:
Other Expenses
Office of Emergency Management:
Other Expenses
Municipal Prosecutor:
Salaries and Wages
Municipal Court
Municipal Court:
Salaries and Wages
Other Expenses
Public Defender:
Salaries and Wages
Public Works Functions
Street and Road Maintenance:
Salaries and Wages
Other Expenses
Public Buildings and Grounds:
Salaries and Wages
Other Expenses
Shade Tree Commission:
Other Expenses
Solid Waste Collection:
Salaries and Wages
Other Expenses
Demolition:
Other Expenses
Vehicle Maintenance:
Other Expenses
$
29,275.00
28,875.00
$
29,775.00
26,875.00
Expended
Paid or
Charged
$
29,275.00
14,751.88
Encumbered
$
441.34
146.16
Reserved
$
Unexpended
Balance
Canceled
58.66
11,976.96
1,715,000.00
78,000.00
1,690,000.00
68,000.00
1,654,807.97
48,030.65
373.81
3,292.67
34,818.22
16,676.68
21,360.00
22,360.00
21,016.36
529.48
814.16
500.00
500.00
500.00
500.00
500.00
12,460.00
12,460.00
12,455.52
95,290.00
14,500.00
103,790.00
14,500.00
103,178.08
13,927.43
8,870.00
8,870.00
2,560.09
78,000.00
24,500.00
78,000.00
24,500.00
77,218.85
22,250.05
995.70
781.15
1,254.25
4,200.00
40,475.00
4,200.00
42,475.00
4,166.60
39,501.91
1,311.45
33.40
1,661.64
3,800.00
3,800.00
3,635.00
165.00
62,000.00
1,000.00
62,000.00
1,000.00
61,558.06
914.00
441.94
86.00
8,000.00
2,000.00
54,000.00
50,000.00
500.00
4.48
290.25
611.92
282.32
6,309.91
2,000.00
40,296.38
4,474.07
5,229.55
(Continued)
-13-
19400
Exhibit A-3
BOROUGH OF PENNS GROVE
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2010
Appropriations
Budget After
Budget
Modification
Health and Human Services
Board of Health:
Salaries and Wages
Other Expenses
Safety Coordinator:
Salaries and Wages
Other Expenses
Animal Control:
Other Expenses
Senior Citizen Transportation:
Other Expenses
$
500.00
1,825.00
$
500.00
1,825.00
Expended
Paid or
Charged
$
Encumbered
463.67
133.16
Reserved
$
Unexpended
Balance
Canceled
36.33
1,691.84
620.00
1,000.00
620.00
1,000.00
999.90
620.00
0.10
20,200.00
20,200.00
18,270.00
1,930.00
700.00
700.00
6,000.00
6,000.00
4,419.62
1,580.38
60,000.00
60,000.00
58,246.27
1,753.73
148,500.00
35,000.00
3,000.00
46,000.00
2,300.00
148,500.00
41,000.00
3,000.00
44,000.00
2,300.00
128,286.28
39,051.43
1,099.67
34,315.33
1,230.17
23,270.00
4,500.00
23,270.00
4,500.00
21,406.68
1,801.78
37,814.00
5,125.00
37,814.00
5,125.00
32,769.45
1,344.62
220.00
5,044.55
3,560.38
Total Operations -- Within "CAPS"
4,528,298.00
4,528,298.00
4,296,335.34
68,525.92
163,436.74
-
Detail:
Salaries and Wages
Other Expenses (Including Contingent)
2,276,978.00
2,251,320.00
2,256,558.00
2,271,740.00
2,192,593.25
2,103,742.09
373.81
68,152.11
63,590.94
99,845.80
-
Recreation and Education
Recreation Services and Programs:
Other Expenses
Landfill/Solid Waste Disposal Costs
Sanitary Landfill:
Other Expenses
Utility Expenses and Bulk Purchases
Electricity and Natural Gas
Telecommunications
Water
Petroleum Products
Sewage Processing & Disposal
Code Enforcement and Administration
Construction Officials:
Salaries and Wages
Other Expenses
Other Code Enforcement Functions:
Salaries and Wages
Other Expenses
700.00
$
7,341.96
1,749.54
7,658.97
12,871.76
199.03
1,900.33
2,025.70
1,069.83
1,863.32
2,698.22
(Continued)
-14-
19400
Exhibit A-3
BOROUGH OF PENNS GROVE
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2010
Appropriations
Budget After
Budget
Modification
Expended
Paid or
Charged
Encumbered
Reserved
Unexpended
Balance
Canceled
DEFERRED CHARGES AND STATUTORY
EXPENDITURES -- WITHIN "CAPS"
Statutory Expenditures
Contribution to:
Social Security System (O.A.S.I.)
Public Employees' Retirement System
Police and Firemen's Retirement System of NJ
Total Deferred Charges and Statutory
Expenditures -- Municipal -- Within "CAPS"
Total General Appropriations for Municipal
Purposes Within -- "CAPS"
OPERATIONS -- EXCLUDED FROM "CAPS"
Employee Group Health
Contribution to:
Public Employees Retirement System
Police and Firemens Retirement System
Aid to Library (N.J.S.A. 40:54-35)
LOSAP
Total Other Operations -- Excluded from "CAPS"
Interlocal Municipal Service Agreements
Revenue Administration (Tax Collection)
Other Expenses
Public Work Function: Other Costs
Other Expenses
Total Interlocal Municipal Service Agreements
Public and Private Programs Offset by Revenues
NJ Senior Citizen and Disabled Resident Transportation Act
Recycling Tonnage Grant
Body Armor Replacement
Municipal Alliance on Alcoholism and Drug Abuse
Click it or Ticket 2010
Over the Limit Under Arrest
Alcohol Rehab & Education Fund
Clean Communities
Total Public and Private Programs Offset by Revenues
$
84,315.00
41,854.22
134,560.87
$
84,315.00
41,854.22
134,560.87
$
78,098.44
41,854.22
134,560.87
$
-
6,216.56
260,730.09
260,730.09
254,513.53
4,789,028.09
4,789,028.09
4,550,848.87
25,843.00
25,843.00
17,518.05
33,782.47
144,868.13
6,268.00
5,400.00
33,782.47
144,868.13
6,268.00
5,400.00
33,782.47
144,868.13
6,268.00
216,161.60
216,161.60
202,436.65
51,491.50
51,491.50
51,491.00
0.50
271,480.00
271,480.00
271,479.50
0.50
322,971.50
322,971.50
322,970.50
52,712.34
4,979.64
866.27
1,718.21
4,000.00
4,400.00
100.55
8,074.29
79,295.32
4,979.64
866.27
1,718.21
4,000.00
4,400.00
100.55
8,074.29
79,295.32
4,979.64
866.27
1,718.21
4,000.00
4,400.00
100.55
8,074.29
76,851.30
103,434.28
103,434.28
$
68,525.92
6,216.56
-
169,653.30
-
8,324.95
5,400.00
-
-
-
13,724.95
1.00
-
-
-
(Continued)
-15-
19400
Exhibit A-3
BOROUGH OF PENNS GROVE
Statement of Expenditures -- Regulatory Basis
For the Year Ended December 31, 2010
Appropriations
Budget After
Budget
Modification
Total Operations -- Excluded from "CAPS"
$
Salaries and Wages
Other Expenses
615,984.40
$
642,567.38
Expended
Paid or
Charged
$
Encumbered
628,841.43
-
615,984.40
642,567.38
628,841.43
10,000.00
150,761.00
400,000.00
10,000.00
150,761.00
400,000.00
10,000.00
150,761.00
400,000.00
560,761.00
560,761.00
560,761.00
67,000.00
18,564.29
42,422.00
67,000.00
18,564.29
42,422.00
67,000.00
18,564.20
42,420.45
127,986.29
127,986.29
127,984.65
42,000.00
42,000.00
42,000.00
42,000.00
42,000.00
42,000.00
17,427.00
17,427.00
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
1,364,158.69
1,390,741.67
1,359,587.08
Subtotal General Appropriations
Reserve for Uncollected Taxes
6,153,186.78
615,552.31
6,179,769.76
615,552.31
5,910,435.95
615,552.31
$
68,525.92
6,768,739.09
$ 6,795,322.07
$ 6,525,988.26
$
68,525.92
CAPITAL IMPROVEMENTS -- EXCLUDED FROM "CAPS"
Capital Improvement Fund
NJ Transportation Trust Fund - Reconstruction of Barber Avenue
Small Cities CDBG Grant - Installation of Wind Turbine at Sewerage Auth.
Total Capital Improvements -- Excluded from "CAPS"
MUNICIPAL DEBT SERVICE -- EXCLUDED FROM "CAPS"
Payment of Bond Anticipation Notes and Capital Notes
Interest on Notes
Green Trust Loan Program - Loan Repayments for Principle & Interest
Total Municipal Debt Service -- Excluded from "CAPS"
DEFERRED CHARGES -- EXCLUDED FROM "CAPS"
Special Emergency Authorizations - 5 Years (N.J.S.40A:4-55)
Total Deferred Charges -- Excluded from "CAPS"
Transferred to Board of Education for Use of Local Schools
Total
$
Budget
Appropriation by 40A:4-87
Reserve for Federal and State Grant Fund--Appropriated
Reserve for Uncollected Taxes
Cash Disbursed
$
The accompanying Notes to Financial Statements are an integral part of this statement.
-16-
$
-
13,725.95
-
13,725.95
-
-
-
$
-
-
-
-
0.09
1.55
1.64
17,427.00
$ 6,768,739.09
26,582.98
$ 6,795,322.07
Reserved
Unexpended
Balance
Canceled
654,195.28
615,552.31
5,256,240.67
$ 6,525,988.26
-
$
13,725.95
17,428.64
183,379.25
17,428.64
183,379.25
$ 17,428.64
19400
Exhibit B
BOROUGH OF PENNS GROVE
TRUST FUNDS
Statements of Assets, Liabilities and Reserves -- Regulatory Basis
As of December 31, 2010 and 2009
Ref.
2010
2009
ASSETS:
Animal Control Fund:
Cash
SB-1
Other Funds:
Cash
Due from Current Fund
SB-1
SB-5
$
Total Other Funds
5,490.80
$
5,206.68
221,863.46
-
240,908.20
1,850.33
221,863.46
242,758.53
$
227,354.26
$
247,965.21
$
313.35
63.60
5,113.85
$
292.72
32.40
4,881.56
LIABILITIES AND RESERVES:
Animal Control Fund:
Due to Current Fund
Due to State of New Jersey Board of Health
Reserve for Dog Fund Expenditures
SB-3
SB-4
SB-2
Total Animal Control Fund
5,490.80
Other Funds:
Due to Current Fund
Reserve for:
Dedicated Uniform Fire Fees
Forfeiture
Builder Deposits
Compensated Balances
Payroll
Public Defender Fees
POAA
Outside Employment of Officers
Tax Title Lien Redemptions
SB-5
14,257.52
SB-6
SB-6
SB-6
SB-6
SB-6
SB-6
SB-6
SB-6
SB-6
2,625.00
6.73
46,147.91
30,299.10
20,912.37
0.00
372.00
3.92
107,238.91
140,545.12
221,863.46
242,758.53
Total Other Funds
$
227,354.26
The accompanying Notes to Financial Statements are an integral part of this statement.
-17-
5,206.68
2,625.00
6.70
40,293.15
33,931.10
22,549.27
2,480.19
328.00
$
247,965.21
19400
Exhibit C
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statements of Assets, Liabilities and Reserves -- Regulatory Basis
As of December 31, 2010 and 2009
ASSETS:
Ref.
Cash
Due from Current Fund
Due from Federal and State Grant Fund
Deferred Charges to Future Taxation:
Funded
Unfunded
SC-1
SC-7
C
2010
$
SC-4
SC-5
27,727.33
56,292.57
40,000.00
2009
$
576,836.79
852,724.92
37,930.43
36,377.71
40,000.00
607,263.36
796,745.00
$
1,553,581.61
$
1,518,316.50
$
64,387.83
576,836.79
633,500.00
$
48,413.74
607,263.36
700,800.00
LIABILITIES AND RESERVES
Capital Improvement Fund
Green Trust Loan Payable
Bond Anticipation Notes
Improvement Authorizations:
Funded
Unfunded
Reserve for Heating System
Reserve for Riverwalk Project
Reserve for Payment of Notes
SC-6
SC-9
SC-10
SC-8
SC-8
C
SC-3
C
35,500.00
199,500.00
25,000.00
64.80
18,792.19
$
1,553,581.61
The accompanying Notes to Financial Statements are an integral part of this statement.
-18-
41,474.09
76,520.08
25,000.00
53.04
18,792.19
$
1,518,316.50
19400
BOROUGH OF PENNS GROVE
Notes to Financial Statements
For the Year Ended December 31, 2010
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Financial Reporting Entity - The Borough of Penns Grove is located in southwest
New Jersey in the County of Salem along the Delaware River approximately twenty miles southeast of
the City of Philadelphia. The population according to the 2000 census is 4,886 and estimated to be
4,676 for 2009.
The Borough has a Mayor-Council form of government in accordance with N.J.S.A. 40A:60-1. The
Mayor is separately elected every four years. Executive and administrative responsibility rests with the
Mayor, who is assisted by the Borough Clerk. Council members are elected to three-year terms.
Component Units - The financial statements of the component units of the Borough of Penns Grove
are not presented in accordance with Governmental Accounting Standards Board Statement No. 14. If
the provisions of GASBS No. 14 had been complied with, the financial statements of the following
component units would have been either blended or discretely presented with the financial statements
of the Borough, the primary government:
Penns Grove Sewerage Authority
81 Beach Avenue
Penns Grove, New Jersey 08069
Penns Grove Redevelopment Agency
1 State Street
Penns Grove, New Jersey 08069
Annual financial reports may be inspected directly at the offices of these component units during regular
business hours.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of
the Borough of Penns Grove contain all funds and account groups in accordance with the
"Requirements of Audit" as promulgated by the State of New Jersey, Department of Community Affairs,
Division of Local Government Services. The principles and practices established by the Requirements
of Audit are designed primarily for determining compliance with legal provisions and budgetary
restrictions and as a means of reporting on the stewardship of public officials with respect to public
funds. Generally, the financial statements are presented using the flow of current financial resources
measurement focus and modified accrual basis of accounting with minor exceptions as mandated by
these "Requirements". In addition, the prescribed accounting principles previously referred to differ in
certain respects from accounting principles generally accepted in the United States of America
applicable to local government units. The more significant differences are explained in this Note.
In accordance with the "Requirements", the Borough of Penns Grove accounts for its financial
transactions through the use of separate funds 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.
-19-
19400
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Budgets and Budgetary Accounting - The Borough of Penns Grove must adopt an annual budget for
its current fund in accordance with N.J.S.A. 40A:4 et seq. N.J.S.A. 40A:4-5 requires the governing
body to introduce and approve the annual municipal budget no later than February 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 Borough'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. Consequently, unrealized gain or
loss on investments has not been recorded in accordance with Governmental Accounting Standards
Board Statement No. 31.
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 Borough of Penns Grove 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.
-20-
19400
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
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.
General Fixed Assets - Accounting for Governmental Fixed Assets, as required by N.J.A.C. 5:30-5.6,
differs in certain respects from accounting principles generally accepted in the United States of
America. In accordance with the regulations, all local units, including municipalities, must maintain a
general fixed assets reporting system that establishes and maintains a physical inventory of
nonexpendable, tangible property as defined and limited by the U.S. Office of Management and Budget
Circular A-87 (Attachment B, Section 19), except that the useful life of such property is at least five
years. The Borough has adopted a capitalization threshold of $5,000, 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 their estimated fair
market value on the acquisition date. 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 Borough is
required to maintain a subsidiary ledger detailing fixed assets records to control additions, retirements
and transfers of fixed assets. In addition, a Statement of General Fixed Assets, reflecting the activity
for the year, must be included in the Borough’s basic financial statements.
The regulations require that general fixed assets, whether constructed or acquired through purchase,
grant or gift be included in the aforementioned inventory. In addition, property management standards
must be maintained that includes accurate records indicating asset description, source, ownership,
acquisition cost and date, the percentage of Federal participation (if any), and the location, use, and
condition of the asset, Periodically, physical inventories must be taken and reconciled with these
records. 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 Assets Account Group. If such property is converted to a municipal
use, it will be recorded in the General Fixed Assets Account Group.
Deferred Charges - The recognition of certain expenditures is deferred to future periods. These
expenditures, or deferred charges, are generally overexpenditures of legally adopted budget
appropriations or emergency appropriations made in accordance with N.J.S.A. 40A:4-46 et seq.
Deferred charges are subsequently raised as items of appropriation in budgets of succeeding years.
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 Balance included in the current fund represent amounts available for anticipation
as revenue in future years budgets, with certain restrictions.
-21-
19400
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
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 are realized when anticipated
as such in the Borough's budget. Receivables for property taxes are recorded with offsetting reserves
on the statement of assets, liabilities, reserves and fund balance of the Borough's Current Fund;
accordingly, such amounts are not recorded as revenue until collected. Other amounts that are due the
Borough which are susceptible to accrual are also recorded as receivables with offsetting reserves and
recorded as revenue when received.
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 Borough's annual budget, but also the amounts required in support of the budgets of the
County of Salem and the Penns Grove Carney’s Point Regional School District. Unpaid property taxes
are subject to tax sale in accordance with the statutes.
School Taxes - The municipality is responsible for levying, collecting and remitting school taxes for the
Penns Grove Carney’s Point Regional School District. Operations is charged for the full amount
required to be raised from taxation to operate the school district for the period from January 1 to
December 31.
County Taxes - The municipality is responsible for levying, collecting and remitting county taxes for the
County of Salem. Operations is charged for the amount due the County for the year, based upon the
ratables required to be certified to the County Board of Taxation by January 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 Borough's annual budget protects the Borough 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 payments on outstanding general capital bonds and notes are provided on
the cash basis; interest on general capital indebtedness is 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 fiscal
year. Lapsed appropriation reserves are recorded as income.
-22-
19400
Notes to Financial Statements (Cont'd)
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Long-Term Debt - Long-Term Debt, relative to the acquisition of capital assets, is recorded as a liability
in the General Capital Fund. Where an improvement is a “local Improvement”, i.e. assessable upon
completion, long-term debt associated with that portion of the cost of the improvement to be funded by
assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the
improvement is fully and permanently funded.
Compensated Absences 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 Borough’s deposits might not be recovered. Although the Borough 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 of governmental deposits in each
insured depository is protected by the Federal Deposit Insurance Corporation (FDIC). Public funds
owned by the Borough in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA
does not protect intermingled trust funds such as salary withholdings or funds that may pass to the
Borough relative to the happening of a future condition. Such funds are shown as Uninsured and
Uncollateralized in the schedule below.
As of December 31, 2010, the Borough’s bank balances of $2,180,505.18 were completely insured and/or
collateralized.
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 years.
Comparative Schedule of Tax Rates
2010
Tax Rate
Apportionment of Tax Rate:
Municipal
County
County Open Space Preservation
Local School
2009R
2008
2007
2006
$3.363
$3.218
$6.190
$5.716
$5.390
$1.340
0.854
0.020
1.149
$1.153
0.888
0.021
1.156
$2.122
1.692
0.038
2.338
$1.802
1.521
0.034
2.359
$1.622
1.440
0.030
2.298
Assessed Valuation
2010
2009R
2008
2007
2006
$179,563,917.00
179,351,597.00
91,779,679.00
91,510,515.00
89,939,456.00
R = Revaluation
-23-
19400
Notes to Financial Statements (Cont'd)
Note 3: PROPERTY TAXES (CONT'D)
Comparison of Tax Levies and Collections
Year
2010
2009
2008
2007
2006
Tax Levy
Percentage
Of Collections
Collections
$6,038,735.18
5,783,915.08
5,781,576.02
5,250,610.10
4,923,239.79
$5,587,124.75
5,330,124.01
5,273,997.46
4,843,935.48
4,537,913.54
92.52%
92.15%
91.22%
92.25%
92.17%
Delinquent Taxes and Tax Title Liens
Year
2010
2009
2008
2007
2006
Tax Title
Liens
$116,579.08
102,414.66
27,923.85
147,784.98
124,763.32
Delinquent
Taxes
Total
Delinquent
$408,705.24
422,296.32
495,757.85
396,302.65
374,612.68
$525,284.32
524,710.98
523,681.70
544,087.63
499,376.00
Percentage
of Tax Levy
8.70%
9.07%
9.06%
10.36%
10.14%
The following comparison is made of the number of tax title liens receivable on December 31 of the last
five years:
Year
2010
2009
2008
2007
2006
Number
49
47
14
183
182
Note 4: PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on the basis of the last
assessed valuation of such properties, for the current and previous four years was as follows:
Year
2010
2009
2008
2007
2006
Amount
$263,600.00
289,200.00
289,200.00
-----
Prior to 01/01/08, all available foreclosed property was transferred to the Penns Grove Redevelopment
Agency.
-24-
19400
Notes to Financial Statements (Cont'd)
Note 5: FUND BALANCES APPROPRIATED
The following schedule details the amount of fund balances available at the end of the current year and
four previous years and the amounts utilized in the subsequent year's budgets.
Utilized
In Budget of
Succeeding Year
Balance
Dec. 31
Year
Current Fund
2010
2009
2008
2007
2006
$638,948.84
610,138.24
521,962.03
428,635.13
710,033.43
$500,760.00
500,760.00
292,000.00
415,000.00
620,000.00
Percentage
of Fund
Balance Used
78.37%
82.07%
55.94%
96.82%
87.32%
Note 6: 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, 2010:
Interfunds
Receivable
Fund
Current Fund
Federal and State Grant Fund
Trust – Animal Control Fund
Trust -- Other Funds
General Capital Fund
$14,570.87
4,701.56
Interfunds
Payable
$60,994.13
40,000.00
313.35
14,257.52
96,292.57
$115,565.00
$115,565.00
Note 7: PENSION PLANS
The Borough of Penns Grove contributes to two cost-sharing multiple-employer 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, certain future Borough employees will participate in the Defined Contribution Retirement
Program (DCRP), which is a defined contribution pension plan and is also administered by 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 and required supplementary information. That report may be obtained by writing
to:
State of New Jersey
Division of Pensions and Benefits
P.O. Box 295
Trenton, New Jersey 08625-0295
Public Employees’ Retirement System – The PERS was established in 1955. The PERS provides
retirement, death, and disability, and medical benefits to qualified members. Vesting and benefit
provisions are established by N.J.S.A. 43:15A and 43:3B.
-25-
19400
Notes to Financial Statements (Cont'd)
Note 7: PENSION PLANS (CONT’D)
The contribution requirements of plan members are determined by State statute. In accordance with
Chapter 62, P.L. 1994, plan members enrolled in the Public Employees' Retirement System were
required to contribute 5% of their annual covered salary. Effective July 1, 2008, however, 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. For employees enrolled in the retirement system prior
to July 1, 2008, the increase is effective with the payroll period that begins immediately after July 1,
2008. The State Treasurer has the right under the current law to make temporary reductions in
member rates based on the existence of surplus pension assets in the retirement system; however, the
statute also requires the return to the normal rate when such surplus pension assets no longer exist.
The Borough is billed annually for it normal contribution plus any accrued liability. These contributions,
equal to the required contributions, were as follows:
Year
Normal
Contribution
Accrued
Liability
2010
2009
2008
$35,794.00
33,611.00
33,516.00
$34,924.00
30,657.00
25,829.00
Total
Liability
$70,718.00
64,268.00
59,345.00
Funded
by State
Pension
Deferral
----$11,869.00
--$28,581.50
---
Paid by
Borough
$70,718.00
35,686.50
47,476.00
(1)
Police and Firemen’s Retirement System – The PRFS was established in 1944. The PFRS provides
retirement, death, and disability, and medical benefits to qualified members. Vesting and benefit
provisions are established by N.J.S.A. 43:16A and 43:3B.
The contribution requirements of plan members are determined by State statute. In accordance with
Chapter 204, P.L. 1989, plan members enrolled in the Police and Firemen’s Retirement System are
required to contribute 8.5% of their annual covered salary. The State Treasurer has the right under the
current law to make temporary reductions in member rates based on the existence of surplus pension
assets in the retirement system; however, statute also requires the return to the normal rate when such
surplus pension assets no longer exist.
The Borough is billed annually for its normal contribution plus any accrued liability. These contributions,
equal to the required contributions, were as follows:
Year
2010
2009
2008
Normal
Contribution
$168,801.00
151,885.00
140,046.00
Accrued
Liability
$110,628.00
98,256.00
82,757.00
Total
Liability
$279,429.00
250,141.00
222,803.00
Pension
Deferral
--$120,130.50
---
Paid by
Borough
$279,429.00
130,010.50
222,803.00
Pension Deferral – Public Law 2009, c.19 (S-21) was enacted on March 17, 2009 and allowed the
Division of Pensions and Benefits to provide non-state government pension system employers the
option of paying the full amount, or an amount that reflects a 50 percent reduction of the normal and
accrued liability component of the PERS and PFRS obligations for payments due in the State fiscal
year ending June 30, 2009. The payments were due on April 1, 2009 (with a grace period until April
30). The amount will be repaid starting in April of 2012 over a 15 year period. The amount will fluctuate
based on pension system investment earnings on the deferred amount.
The Borough applied for and received approval from the Local Finance Board to defer a portion of the
2009 liability due for both PERS and PFRS.
-26-
19400
Notes to Financial Statements (Cont'd)
Note 7: PENSION PLANS (CONT’D)
Related Party Investments - The Division of Pensions and Benefits does not invest in securities
issued by the Borough.
________________________
(1) Under the provisions of Chapter 108, P.L. 2003 the Borough’s share of the total normal contribution and accrued liability will
increase approximately 20% per year until the Borough is paying 100% of the total normal contribution and accrued liability.
Note 8: COMPENSATED ABSENCES
Employees of the Borough are entitled to paid vacation and sick days based on job description,
collective bargaining agreements and other factors.
The Borough has established a Compensated Absences Trust Fund to set aside funds for future
payments of compensated absences. At December 31, 2010 the balance of the fund was $30,299.10.
It is estimated that, at December 31, 2010, accrued benefits for compensated absences are valued at
$144,394.80.
Note 9: DEFERRED COMPENSATION SALARY ACCOUNT
The Borough 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 Borough or its creditors. Since the Borough does not have a
fiduciary relationship with the Plan, the balances and activities of the Plan are not reported in the
Borough’s financial statements.
Note 10: LENGTH OF SERVICE AWARD PROGRAM
The Borough’s Length of Service Awards Program (LOSAP) was created by a Borough Ordinance 9917 pursuant to Section 457 (e)(11)(13) of the Internal Service Code of 1986, as amended, except for
provisions added by reason of the Length of Service Award Program as enacted into federal law in
1997. The voters of the Borough of Penns Grove approved the adoption of the LOSAP at the general
election held on November 2, 1999, and the first year of eligibility for entrance into the LOSAP by
qualified volunteers was calendar year 2000. The LOSAP provides tax deferred income benefits to
active volunteer firefighters and emergency medical personnel.
Amounts deferred under Section 457 plans must be held in trust for the exclusive benefit of participating
employees and not be accessible by the Borough or its creditors. Since the Borough does not have a
fiduciary relationship with the LOSAP, the balances and activities of the LOSAP are not reported in the
Borough’s financial statements.
-27-
19400
Notes to Financial Statements (Cont'd)
Note 11: CAPITAL DEBT
Summary of Debt
Year 2010
Issued
General: Bonds and Notes
Year 2009
Year 2008
$1,210,336.79
$1,308,063.36
$1,366,390.40
Deductions
Reserve to Pay Notes
(18,792.19)
(18,792.19)
(18,792.19)
Authorized but not Issued
General: Bonds and Notes
219,224.92
95,945.00
96,045.00
$1,410,769.52
$1,385,216.17
$1,443,643.21
Net Debt
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 .79%.
Gross Debt
Regional School District
General
Deductions
Net Debt
$ 1,654,084.62
1,429,561.71
$ 1,654,084.62
18,792.19
--$ 1,410,769.52
$ 3,083,646.33
$ 1,672,876.81
$ 1,410,769.52
Net Debt $ 1,410,769.52 divided by the Equalized Valuation Basis per N.J.S.A.40A:2-2 as amended,
$178,615,802.00 equals 0.79%.
Borrowing Power Under N.J.S.A.40A:2-6 As Amended
3 ½% of Equalized Valuation Basis (Municipal)
Net Debt
$ 6,251,553.07
1,410,769.52
Remaining Borrowing Power
$ 4,840,783.55
Schedule of Annual Debt Service for Principal and Interest for Bonded Debt Issued and
Outstanding
Year
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
Principal
$31,038.14
31,662.00
32,298.40
32,947.60
33,609.85
166,109.49
170,509.41
78,661.90
Interest
$11,382.32
10,758.45
10,122.05
9,472.85
8,810.61
33,888.45
17,384.14
2,310.66
-28-
Total
$42,420.46
42,420.45
42,420.45
42,420.45
42,420.46
199,997.94
187,893.55
80,972.56
19400
Notes to Financial Statements (Cont'd)
Note 12: JOINT INSURANCE POOL
The Borough of Penns Grove is a member of the Gloucester, Salem, Cumberland Counties Municipal
Joint Insurance Fund. The Fund provides its members with the following coverage:
Workers' Compensation and Employer's Liability
Liability other than Motor Vehicles
Property Damage other than Motor Vehicles
Motor Vehicles
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 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.
The Fund provides the Borough with the following coverage:
Workers' Compensation and Employer's Liability
General and Automobile Liability
Public Officials Liability
Casualty and Crime Coverage
Property – Blanket Buildings and Grounds
Contributions to the Fund, are payable in an annual premium and is based on actuarial assumptions
determined by the Fund's actuary. The Borough's agreement with the pool provides that the pool will
be self-sustaining through member premiums and will reinsure through commercial insurance for claims
in excess of $500,000 for each insured event.
The Fund publishes its own financial report, which can be obtained from:
Gloucester, Salem, Cumberland Counties Municipal Insurance Fund
P.O. Box 490
Marlton, New Jersey 08053
Note 13: DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Certain expenditures are required to be deferred to budgets of succeeding years. At December 31,
2010, the following deferred charges are shown on the statement of assets, liabilities, reserves and
fund balance of the following fund:
Balance
Dec. 31, 2010
Current Fund:
Special Emergency Authorizations
$ 126,000.00
2011 Budget
Appropriation
$ 42,000.00
The appropriations in the 2011 Budget as adopted are not less than that required by the statutes.
-29-
19400
Notes to Financial Statements (Cont'd)
Note 14: DEBT SERVICE AGREEMENT
The Borough has entered into a debt service agreement with the Penns Grove Sewerage Authority.
The Borough adopted Ordinance No. 07-11 in the amount of $300,000.00 to provide the Authority with
additional funding to complete the rehabilitation project of the wastewater treatment plant. The Authority
shall repay the Borough principal and interest that has accrued at a rate equal to the rate incurred by
the Borough in connection with the borrowing of funds. The Sewerage Authority shall utilize the funds
exclusively for the project and shall provide the Borough with written reports and records evidencing
compliance with same. At December 31, 2010, the Borough had $195,000.00 in outstanding debt
covered by this agreement.
Note 15: OTHER POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 7, the Borough currently pays a variety of
insurance premiums for 15 retired employees. The Borough currently accounts for and finances such
expenditures on a pay as you go basis. The expense for these benefits for the year ended December
31, 2010 was approximately $280,000.00. The calculation of Other Post Employment Benefits (OPEB)
costs and liabilities generally requires a study of long-term projections of program participation and
health care costs. The Borough has not engaged an actuary to perform this study as required by GASB
45.
Note 16: LITIGATION
The Borough is a defendant in several legal proceedings that are in various stages of litigation. It is
believed that the outcome, or exposure to the Borough, from such litigation is either unknown or
potential losses, if any, would not be material to the financial statements.
-30-
SUPPLEMENTAL EXHIBITS
-31-
SUPPLEMENTAL EXHIBITS
CURRENT FUND
-32-
19400
Exhibit SA-1
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Current Cash
For the Year Ended December 31, 2010
Federal and State
Grant Fund
Regular Fund
Treasurer
Balance December 31, 2009
Increased by Receipts:
From Tax Collector
Taxes Receivable
Tax Title Liens
Tax Overpayments
Prepaid Taxes
Senior Citizens' and Veterans' Deductions
Miscellaneous Revenue Anticipated
Miscellaneous Revenue Not Anticipated
Due Federal & State Grant Fund - Collected for
Due Trust -- Other Funds - Collector for
Due General Capital Fund - Received from
Due Current Fund
Reserve for Program Income
Loans Receivable - HUD Special Purpose Grant
Contra
Decreased by Disbursements:
To Treasurer
Appropriations
Appropriation Reserves
County Taxes Payable
Local School Taxes Payable
Tax Overpayments
Due from Redevelopment Agency
Reserve for Revaluation
Due Federal & State Grant Fund - Disbursed for
Appropriated Grants
Reserve for Program Income
Refund of Prior Year Revenue
Contra
$
$
Tax Collector
764,475.05
$
$
220,123.01
6,347,566.00
$
45,250.00
2,608,190.00
30,937.18
229,151.96
44.00
20,000.00
5,878,085.49
32,914.29
672.56
57,310.88
267,886.98
994.80
$
245.77
16,389.54
9,390.64
139,279.00
9,420,418.14
6,237,865.00
26,025.95
10,184,893.19
6,595,561.89
246,148.96
6,347,566.00
5,256,240.67
191,201.93
1,567,632.30
1,807,756.12
5,846.14
5,000.00
10,000.00
113,873.82
1,149.62
50,000.00
9,242.83
139,279.00
9,106,072.81
Balance December 31, 2010
357,696.89
$
1,078,820.38
-33-
6,347,566.00
$
247,995.89
51,149.62
$
194,999.34
19400
Exhibit SA-2
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Taxes Receivable and Analysis of Property Tax Levy
For the Year Ended December 31, 2010
Balance
Dec. 31, 2009
Prior
2009
$
2010
Levy
2009
2010
9,223.54
413,072.78
$
422,296.32
2010
$
Collected
422,296.32
-
-
$ 6,038,735.18
$
67,968.67
$ 6,038,735.18
$
67,968.67
Analysis of 2010 Property Tax Levy
Tax Yield:
General Purpose
Added / Omitted Taxes
382.75
402,007.62
-
5,475,695.12
5,878,085.49
$
6,038,735.18
-
$
$
-
2,062,622.54
$ 1,531,878.13
35,754.17
1,567,632.30
Local Tax for Municipal Purposes
Add: Additional Tax Levied
Transferred
to Liens
Balance
Dec. 31, 2010
$
402,390.37
$
Adjustments
and
Canceled
$
$ 6,038,735.18
Tax Levy:
Regional School Tax
County Taxes:
County Tax
County Open Space Tax
Due County for Added and Omitted Taxes
Due from
State of
New Jersey
Overpayments
Applied
2,407,781.00
699.34
2,408,480.34
$ 6,038,735.18
-34-
-
10,392.60
8,840.79
0.00
672.56
10,392.60
8,840.79
35,338.18
399,864.45
672.56
$
43,460.96
$
16,407.80
$
43,460.96
$
17,080.36
$
$
45,730.78
$
408,705.24
19400
Exhibit SA-3
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Tax Title Liens
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Interest and Costs
Transfers from Taxes Receivable
$
102,414.66
1,347.93
45,730.78
47,078.71
149,493.37
Decreased by:
Collections
32,914.29
Balance December 31, 2010
$
-35-
116,579.08
19400
Exhibit SA-4
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Due from State of New Jersey
Senior Citizens' and Veterans' Deductions
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
2010 Levy -- Deductions per Tax Billing
2010 Senior Citizens' and Veterans' Deductions
Granted by Tax Collector
$
3,094.92
47,000.00
125.00
$
2010 Senior Citizens' and Veteran's Deductions
Disallowed by Tax Collector
47,125.00
(3,664.04)
43,460.96
46,555.88
Decreased by:
Cash Received
Prior Year Senior Citizens' and Veterans' Deductions
Disallowed by Tax Collector
45,250.00
none
45,250.00
Balance December 31, 2010
$
-36-
1,305.88
19400
Exhibit SA-5
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Revenue Accounts Receivable
For the Year Ended December 31, 2010
Balance
Dec. 31, 2009
Licenses:
Alcoholic Beverages
Other
Fees and Permits
Fines and Costs - Municipal Court
Interest and Costs on Taxes
Payment in Lieu of Taxes:
Penns Grove Gardens
Penn Village
Consolidated Municipal Property Tax Relief Aid
Energy Receipts Tax
Transitional Aid
Uniform Construction Code Fees
Public and Private Revenues Offset
N.J. Transportation Trust Fund Authority Act
NJ Senior Citizen and Disabled Resident Transportation Act
Recycling Tonnage Grant
Body Armor Replacement
Over the Limit Under Arrest
Click it or Ticket 2010
Alcohol Rehab & Education Fund
Clean Communities
Small Cities Grant
Penns Grove Sewerage Authority Contribution
Accrued
$
$
4,176.17
8,995.39
1,157.75
$
14,329.31
Treasurer
Public and Private Revenues Offset
Tax Collector
5,757.76
104,314.00
86,322.80
122,239.31
73,386.98
Collected/Applied
$
5,757.76
104,314.00
84,982.53
124,388.32
73,386.98
152,000.00
42,500.00
526,736.00
718,118.00
1,000,000.00
16,555.94
152,000.00
42,500.00
526,736.00
718,118.00
1,000,000.00
6,443.39
150,761.00
79,295.32
4,979.64
866.27
4,400.00
4,000.00
100.55
8,074.29
400,000.00
37,450.00
150,761.00
79,295.32
4,979.64
866.27
4,400.00
4,000.00
100.55
8,074.29
400,000.00
37,450.00
$ 3,537,857.86
$ 3,528,554.05
$ 2,608,190.00
652,477.07
267,886.98
$ 3,528,554.05
-37-
Balance
Dec. 31, 2010
$
5,516.44
6,846.38
11,270.30
$
23,633.12
19400
Exhibit SA-6
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Appropriation Reserves
For the Year Ended December 31, 2010
Balance
After
Modification
Balance December 31, 2009
Encumbered
Reserved
Paid or
Charged
Lapsed to
Fund Balance
OPERATIONS -- WITHIN "CAPS"
General Government Functions
Mayor and Council:
Salaries and Wages
Other Expenses
Municipal Clerk:
Salaries and Wages
Other Expenses
$
Financial Administration:
Salaries and Wages
Other Expenses
Revenue Administration
Other Expenses
Tax Assessment Administration
Salaries and Wages
Other Expenses
Legal Services and Costs
Other Expenses
Engineering Services and Costs
Other Expenses
Economic Development Agencies
Other Expenses
Audit Services:
Other Expenses
Liquidation of Tax Title Liens and Foreclosed Property
Other Expenses
Land Use Administration
Planning Board:
Salaries and Wages
Other Expenses
Public Safety Functions
Fire:
Fire Hydrant Service
Miscellaneous Other Expenses
Police:
Salaries and Wages
Other Expenses
Aid to Ambulance:
Other Expenses
Office of Emergency Management
Other Expenses
Municipal Prosecutor:
Salaries and Wages
Municipal Court
Municipal Court:
Salaries and Wages
Other Expenses
Public Defender:
Salaries and Wages
Insurance
Workers Compensation
Employee Group Health
Unemployment Insurance
Public Works Functions
Street and Road Maintenance
Salaries and Wages
Other Expenses
Public Buildings and Grounds:
Salaries and Wages
Other Expenses
Shade Tree Commission:
Other Expenses
$
253.44
1,524.10
$
253.44
1,524.10
2,127.51
5,584.96
1,447.65
1,584.96
3,575.16
3,189.76
66.16
665.61
56.70
$
253.44
1,524.10
3,243.81
1,584.96
331.35
66.16
3,855.37
3,627.46
66.16
227.91
320.63
377.33
376.70
0.63
79.63
1,305.00
79.63
1,305.00
680.00
79.63
625.00
5,850.00
10,631.36
16,481.36
10,575.00
5,906.36
2,316.01
4,005.91
6,321.92
5,839.12
482.80
173.06
1,462.25
635.31
173.06
462.25
3,345.00
3,345.00
345.00
$
4,810.00
4,810.00
1,552.50
1.40
4,569.00
1.40
6,121.50
2,102.50
1.40
4,019.00
4,898.18
8,652.98
6,244.96
7,898.18
14,897.94
7,565.10
8,637.48
333.08
6,260.46
8,318.44
6,508.64
21,656.20
27,318.44
13,164.84
8,318.44
5,851.69
19,000.00
7,313.15
180.30
4,637.72
2,818.02
180.30
2,637.72
500.00
500.00
500.00
4.48
4.48
4.48
1,252.29
1,636.78
1,252.29
3,203.93
8,870.00
870.00
1,941.00
13,870.17
1,422.05
1,941.00
4,120.17
1,422.05
8,362.87
607.00
3,362.87
41,415.55
41,415.55
348.00
348.00
9,313.58
8,680.27
348.00
633.31
610.00
150.00
460.00
1,567.15
250.00
31,808.55
5,313.58
150.00
460.00
4,810.00
1,453.15
1,252.29
1,750.78
870.00
(139.74)
1,941.00
4,259.91
1,422.05
3,362.87
(Continued)
-38-
19400
Exhibit SA-6
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Appropriation Reserves
For the Year Ended December 31, 2010
Balance
After
Modification
Balance December 31, 2009
Encumbered
Reserved
Paid or
Charged
Lapsed to
Fund Balance
OPERATIONS -- WITHIN "CAPS" (CONT'D)
Public Works Functions (Cont'd)
Solid Waste Collection:
Salaries and Wages
Other Expenses
Demolition
Other Expenses
Vehicle Maintenance:
Other Expenses
$
$
1,269.00
2,900.52
1,000.36
$
2,900.52
2,269.36
$
$
1,307.81
2,900.52
961.55
500.00
500.00
5,408.05
16,379.61
22.97
945.00
22.97
945.00
2,339.00
3,049.00
700.00
700.00
700.00
1,587.89
1,248.82
87.89
1,248.82
87.89
1,248.82
2,434.60
479.95
2,914.55
2,609.60
304.95
Landfill/Solid Waste Disposal Costs
Sanitary Landfill:
Other Expenses
19,357.22
11,431.41
30,788.63
28,843.41
1,945.22
Utility Expenses and Bulk Purchases
Electricity and Natural Gas
Telecommunications
Water
Petroleum Products
Sewage Processing & Disposa
12,169.35
2,988.43
77.45
9,524.07
117.50
986.56
1,305.21
11,302.81
977.50
26,655.91
3,988.43
1,382.66
14,826.88
1,095.00
26,641.17
3,755.05
144.68
9,524.07
117.50
14.74
233.38
1,237.98
5,302.81
977.50
112.00
497.42
1,266.88
497.42
1,378.88
112.00
497.42
1,266.88
65.00
880.22
1,935.83
880.22
2,000.83
65.00
880.22
1,935.83
5,182.25
0.50
0.50
5,182.25
0.50
0.50
5,400.00
6,740.00
5,400.00
6,740.00
Health and Human Services
Safety Coordinator:
Salaries and Wages
Other Expenses
Animal Control:
Other Expenses
Senior Citizen Transportation
Other Expenses
Board of Health
Salaries and Wages
Other Expenses
Recreation and Education
Recreations Services and Programs
Other Expenses
Code Enforcement and Administration
Construction Code Official:
Salaries and Wages
Other Expenses
Other Code Enforcement Functions:
Salaries and Wages
Other Expenses
10,971.56
710.00
Statutory Expenditures
Social Security System (O.A.S.I.)
Public Employees' Retirement System
Police and Firemen's Retirement System of NJ
500.00
10,352.86
6,026.75
22.97
945.00
710.00
2,339.00
5,182.25
0.50
0.50
OPERATIONS -- EXCLUDED FROM "CAPS"
LOSAP
Revenue Administration (Tax Collection
$ 143,054.54
$ 173,580.27
Cash Disbursed
Accounts Payable
-39-
$
316,634.81
3,340.08
$
199,598.12
$
191,201.93
8,396.19
$
199,598.12
2,059.92
6,740.00
$
117,036.69
19400
Exhibit SA-7
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Tax Overpayments
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Tax Overpayments
6,283.81
672.56
6,956.37
Decreased by:
Refunded
5,846.14
Balance December 31, 2010
$
1,110.23
Exhibit SA-8
CURRENT FUND
Statement of Prepaid Taxes
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Collections -- 2011 Taxes
67,968.67
57,310.88
125,279.55
Decreased by:
Applied to 2010 Taxes Receivable
67,968.67
Balance December 31, 2010
$
-40-
57,310.88
19400
Exhibit SA-9
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Due County Taxes
For the Year Ended December 31, 2010
Increased by:
County General Share of 2010 Levy
County Open Space Preservation Share of 2009 Levy
$ 1,531,878.13
35,754.17
$ 1,567,632.30
Decreased by:
Disbursements
$ 1,567,632.30
19400
Exhibit SA-10
CURRENT FUND
Statement of Foreclosed Property
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Decreased by:
Sales
Adjustment
$
289,200.00
5,176.50
20,423.50
25,600.00
Balance December 31, 2010
$
-41-
263,600.00
19400
Exhibit SA-11
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Regional School District Tax
For the Year Ended December 31, 2010
Balance December 31, 2009
Prepaid
$
Increased by:
Calendar Year School Levy
21,423.00
2,062,622.54
2,041,199.54
Decreased by:
Disbursements
1,807,756.12
Balance December 31, 2010
Payable
$
233,443.42
Exhibit SA-12
CURRENT FUND
Statement of Accounts Payable
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Transferred from Appropriation Reserves
7,476.88
8,396.19
Balance December 31, 2010
$
-42-
15,873.07
19400
Exhibit SA-13
BOROUGH OF PENNS GROVE
CURRENT FUND
Statement of Reserve for Revaluation
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Decreased by:
Disbursements
58,922.50
10,000.00
Balance December 31, 2010
$
48,922.50
Exhibit SA-14
CURRENT FUND
Statement of Notes Payable - Special Emergencies
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Decreased by:
Budget Appropriation
168,000.00
42,000.00
Balance December 31, 2010
$
126,000.00
Analysis of Balance
Revaluation
Tax Map Revisions
$
120,000.00
6,000.00
$
126,000.00
-43-
19400
Exhibit SA-15
BOROUGH OF PENNS GROVE
FEDERAL AND STATE GRANT FUND
Statement of Loan Receivable - HUD Special Purpose Grant
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Loans
Interest on Loans
31,056.33
$ 50,000.00
1,315.07
51,315.07
82,371.40
Decreased by:
Due from Current Fund
Collections
500.00
9,390.64
9,890.64
Balance December 31, 2010
$
72,480.76
Exhibit SA-16
FEDERAL AND STATE GRANT FUND
Statement of Reserve for Program Income
For the Year Ended December 31, 2010
Balance December 31, 2009
$ 136,350.84
Increased by:
Interest Earnings
Receipts
$ 189.54
16,200.00
$ 16,389.54
Collections of Loans Receivable HUD Special Purpose Grant by Current Fund
Collections of Loans Receivable - HUD Special Purpose Grant
500.00
9,390.64
26,280.18
162,631.02
Decreased by:
Disbursements:
Loans
50,000.00
Balance December 31, 2010
$ 112,631.02
-44-
19400
Exhibit SA-17
BOROUGH OF PENNS GROVE
FEDERAL AND STATE GRANT FUND
Statement of Due Current Fund
For the Year Ended December 31, 2010
Balance December 31, 2009 (Due to)
$
Increased by:
Federal & State Grant Fund Interest Earnings
Disbursed by Current Fund
Cancellation of Appropriated Reserves
$
22,671.93
245.77
113,873.82
91,401.69
205,521.28
228,193.21
Decreased by:
Collected by Current Fund:
Receipts
Federal & State Grants Receivable
Federal & State Grants Unappropriated
$
500.00
224,853.68
3,798.28
229,151.96
Cancellation of Grants Receivable
Budget Appropriation Matching Grant Funds
2,024.60
1,718.21
232,894.77
Balance December 31, 2010 (Due from)
$
-45-
4,701.56
19400
Exhibit SA-18
BOROUGH OF PENNS GROVE
FEDERAL AND STATE GRANT FUND
Statement of Federal and State Grants Receivable
For the Year Ended December 31, 2010
Decreased by:
Program
Federal Grants:
NJ Transportation Trust West Harmony III
NJ Transportation Trust West Pitman Street I
NJ Transportation Trust West Pitman Street II
NJ Transportation Trust West Pitman Street III
NJ Transportation Trust West Pitman Street IV
NJ Transportation Trust Barber Avenue
Small Cities CDBG Grant Installation of Wind Turbine at Sewerage Authority
Over the Limit Under Arrest
Click It or Ticket
Safety Seat Belt Initiative Grant
Balance
Dec. 31, 2009
$
Revenue
Anticipated
Canceled
34,119.54
34,503.50
31,083.05
30,839.35
41,044.55
Balance
Dec. 31, 2010
Received
$
34,119.54
$
550.00
150,761.00
400,000.00
4,400.00
4,000.00
$
559,161.00
State Grants:
Clean Communities
Recycling Tonnage
Body Armor
NJ Senior Citizen and Disabled Transportation
Municipal Court Alcohol Education & Rehabilitation
Neighborhood Preservation - Home
1,958.66
Total State Grants Receivable
1,958.66
93,316.07
175,425.35
$ 652,477.07
8,074.29
4,979.64
866.27
79,295.32
100.55
$
400,000.00
950.00
4,000.00
4,000.00
1,326.70
173,466.69
34,503.50
31,083.05
30,839.35
41,044.55
$ 150,761.00
Total Federal Grants Receivable
Total Grants Receivable
Transferred
from
Unappropriated
-
1,326.70
1,326.70
145,086.49
586,214.50
8,074.29
$
4,979.64
866.27
70,726.08
100.55
5,005.41
1,958.66
79,767.19
5,005.41
$
3,285.36
$ 224,853.68
$
1,260.76
2,024.60
3,563.83
1,958.66
Federal and State Grants - Appropriated
Fund Balance
Current Fund
8,543.47
$
8,543.47
$ 224,853.68
$
-46-
3,285.36
$ 224,853.68
$
591,219.91
19400
Exhibit SA-19
BOROUGH OF PENNS GROVE
FEDERAL AND STATE GRANT FUND
Statement of Reserve for Federal and State Grants -- Appropriated
For the Year Ended December 31, 2010
Transferred
from
Budget
Appropriation
Appropriated
Balance
Dec. 31, 2009
Program
Federal Grants:
NJ Transportation Trust West Harmony III
NJ Transportation Trust West Pitman Street I
NJ Transportation Trust West Pitman Street II
NJ Transportation Trust West Pitman Street III
NJ Transportation Trust West Pitman Street IV
NJ Transportation Trust Barber Avenue
Small Cities CDBG Grant Installation of Wind Turbine at Sewerage Authority
Over the Limit Under Arrest
Click It or Ticket
Safety Seat Belt Initiative Grant
$
Canceled
$
$
3,570.60
$
150,761.00
400,000.00
4,400.00
4,000.00
2,800.00
1,260.76
84,872.66
559,161.00
21,852.51
9,132.27
8,343.27
5,045.34
4,233.64
2,980.79
0.21
6,155.65
9,225.05
29,725.97
8,792.23
2,405.72
1,475.35
7,514.97
8,079.00
8,074.29
4,979.64
866.27
79,295.32
100.55
1,718.21
7,407.32
2,850.00
3,259.27
74,997.26
103,109.46
95,034.28
187,982.12
15,768.60
150,761.00
400,000.00
3,200.00
4,000.00
4,000.00
1,260.76
$
Appropriated
Balance
Dec. 31, 2010
13,625.31
15,159.75
9,408.98
12,996.75
10,281.91
$
State Grants:
Clean Communities
Recycling Tonnage
Body Armor
NJ Senior Citizen and Disabled Transportation
Municipal Court Alcohol Education & Rehabilitation
Municipal Alliance on Alcoholism and Drug Abuse
Drunk Driving Enforcement
Hazardous Discharge Site - Tyrone Street
Hazardous Discharge Site
Hazardous Discharge Site - Broad Street School
State & Local Hazard Operation Plan
Domestic Violence Training
Salem County - Recycling Incentive Grant
Stormwater Management
Realized as Revenue in Budget
Local Match - Due from Current Fund
Federal and State Grants Receivable
Fund Balance
Disbursed by Current Fund
Disbursed by Federal & State Grant Fund
13,625.31
18,730.35
9,408.98
12,996.75
26,050.51
Cash
Disbursements
52,451.55
569,729.60
9,799.24
10,472.91
2,652.34
8,531.70
3,081.34
1,718.21
1,149.62
0.21
5,006.03
9,225.05
29,725.97
8,792.23
2,405.72
1,475.35
5,725.72
1,789.25
8,079.00
$
654,195.28
$
652,477.07
1,718.21
$
-47-
654,195.28
93,170.93
$
115,023.44
$
113,873.82
1,149.62
$
115,023.44
40,210.90
$
92,662.45
$
1,260.76
91,401.69
$
92,662.45
64,761.91
$
634,491.51
19400
Exhibit SA-20
BOROUGH OF PENNS GROVE
FEDERAL AND STATE GRANT FUND
Statement of Reserve for Federal and State Grants -- Unappropriated
For the Year Ended December 31, 2010
Balance
Dec. 31, 2009
State Grants:
Recycling Tonnage
Body Armor
NJ Senior Citizen and Disabled Transportation
$
4,979.64
Received
$
2,194.42
1,603.86
Realized as
Miscellaneous
Revenue in
2010
Budget
Balance
Dec. 31, 2010
$
$
2,194.42
1,603.86
$
3,798.28
3,563.83
$
8,543.47
-48-
4,979.64
3,563.83
$
3,798.28
$
8,543.47
SUPPLEMENTAL EXHIBITS
TRUST FUND
-49-
19400
Exhibit SB-1
BOROUGH OF PENNS GROVE
TRUST FUNDS
Statement of Trust Cash
For the Year Ended December 31, 2010
Animal Control
Balance December 31, 2009
Increased by Receipts:
Dog License Fees Collected
Due Current Fund
Reserve for:
Forfeiture
Builder Deposits
Compensated Balances
Payroll
Public Defender Fees
Outside Employment of Officers
Tax Title Lien Redemptions
Decreased by Disbursements:
Due State Department of Health
Expenditures Under R.S. 4:19-15.11
Due Current Fund
Reserve for:
Builder Deposits
Compensated Balances
Payroll
Public Defender Fees
Outside Employment of Officers
Tax Title Lien Redemptions
$
$
Other
5,206.68
4,702.00
20.63
$
$
240,908.20
672.40
0.03
8,679.64
4,167.76
2,737,619.02
2,978.00
15,244.06
614,813.64
4,722.63
3,384,174.55
9,929.31
3,625,082.75
787.80
3,650.71
6,202.83
2,824.88
7,799.76
2,739,255.92
5,458.19
15,240.14
626,437.57
4,438.51
Balance December 31, 2010
$
-50-
5,490.80
3,403,219.29
$
221,863.46
19400
Exhibit SB-2
BOROUGH OF PENNS GROVE
TRUST -- ANIMAL CONTROL FUND
Statement of Reserve for Dog Fund Expenditures
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Dog License Fees Collected
4,881.56
4,702.00
9,583.56
Decreased by:
Due to State of New Jersey Board of Health
Expenditures Under R.S.4:19- 15.11
$
819.00
3,650.71
4,469.71
Balance December 31, 2010
$
License Fees Collected
Year
5,113.85
Amount
2009
2008
$
2,945.00
2,804.00
$
5,749.00
Exhibit SB-3
TRUST -- ANIMAL CONTROL FUND
Statement of Due to Current Fund
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Receipts - Interest on Deposits
292.72
20.63
Balance December 31, 2010
$
-51-
313.35
19400
Exhibit SB-4
BOROUGH OF PENNS GROVE
TRUST -- ANIMAL CONTROL FUND
Statement of Due to State of New Jersey
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Transferred from Reserve for Dog Fund Expenditures
32.40
819.00
851.40
Decreased by:
Disbursements
787.80
Balance December 31, 2010
$
-52-
63.60
19400
Exhibit SB-5
BOROUGH OF PENNS GROVE
TRUST -- OTHER FUNDS
Statement of Due Current Fund
For the Year Ended December 31, 2010
Balance December 31, 2009 (Due from)
$
Increased by:
Collected by Current Fund
Disbursed to Current Fund as MRNA
$
1,850.33
44.00
6,202.83
6,246.83
8,097.16
Decreased by:
Escheated Tax Sale Premiums
Receipts - Interest Earned on Deposits
21,682.28
672.40
22,354.68
Balance December 31, 2010 (Due to)
$ 14,257.52
Analysis of Balance Dec. 31, 2010
Builder Deposits
Payroll
POAA
Tax Title Lien Redemptions
$
(70.56)
(14,526.80)
372.00
(32.16)
$ 14,257.52
-53-
19400
Exhibit SB-6
BOROUGH OF PENNS GROVE
TRUST -- OTHER FUNDS
Statement of Changes in Reserves
For the Year Ended December 31, 2010
Increased by
Balance
Dec. 31, 2009
Reserve for:
Dedicated Uniform Fire Fees
Forfeiture
Builder Deposits
Compensated Balances
Payroll
Public Defender Fees
POAA
Outside Employment of Officers
Tax Title Lien Redemptions
$
$
2,625.00
6.70
40,293.15
33,931.10
22,549.27
2,480.19
328.00
140,545.12
242,758.53
Interest
Earnings
$
Decreased by
Receipts
Other
Other
Balance
Dec. 31, 2010
$
2,625.00
6.73
46,147.91
30,299.10
20,912.37
0.00
372.00
3.92
107,238.91
$
207,605.94
0.03
$
167.76
8,679.64
4,000.00
2,737,619.02
2,978.00
$
$
16.66
$
Disbursements
184.45
44.00
15,227.40
614,813.64
$ 3,383,317.70
-54-
$
2,824.88
7,799.76
2,739,255.92
5,458.19
44.00
15,240.14
626,437.57
$
21,682.28
$ 3,397,016.46
$
21,682.28
SUPPLEMENTAL EXHIBITS
GENERAL CAPITAL FUND
-55-
19400
Exhibit SC-1
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of General Capital Cash
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by Receipts:
Capital Improvement Fund Budget Appropriation - Current Fund
Due Current Fund
Reserve for Riverwalk Project
$
37,930.43
10,000.00
85.14
11.76
10,096.90
48,027.33
Decreased by Disbursements:
Due Current Fund
Bond Anticipation Notes
20,000.00
300.00
20,300.00
Balance December 31, 2010
Analysis of Balance
Capital Account
Green Trust Account
Fenwick Commons LLC Escrow
-56-
$
27,727.33
$
19,886.15
1,289.26
6,551.92
$
27,727.33
19400
Exhibit SC-2
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Analysis of General Capital Cash
For the Year Ended December 31, 2010
Receipts
Balance
(Deficit)
Dec. 31, 2009
Capital Improvement Fund
Due to Current Fund
Due from Federal & State Grant Fund
Reserve for Heating System
Reserve for Riverwalk Project
Reserve for Payment of Notes
Improvement Authorizations:
Ordinance
Number
97-03
97-16
03-16
05-04
05-05
05-06
05-09
07-12
10-15
$ 48,413.74
(36,377.71)
(40,000.00)
25,000.00
53.04
18,792.19
Miscellaneous
Disbursements
Bond
Anticipation
Notes
Miscellaneous
$ 10,000.00
85.14
$ 20,000.00
Transfers
To
From
$ 16,474.09
$ 10,500.00
11.76
(19,380.92)
2,375.90
6,292.95
402.24
2,903.00
25,000.00
4,500.00
(44.00)
$ 64,387.83
(56,292.57)
(40,000.00)
25,000.00
64.80
18,792.19
(19,380.92)
2,375.90
6,292.95
402.24
2,903.00
25,000.00
4,500.00
$
300.00
(344.00)
10,500.00
10,500.00
$ 37,930.43
Balance
(Deficit)
Dec. 31, 2010
$ 10,096.90
$
300.00
-57-
$ 20,000.00
$ 26,974.09
$ 26,974.09
$ 27,727.33
19400
Exhibit SC-3
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Reserve for Riverwalk Project
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Fenwick Commons Account - Interest Earnings
53.04
11.76
Balance December 31, 2010
$
64.80
Exhibit SC-4
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Deferred Charges to Future Taxation -- Funded
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Decreased by:
Budget Appropriation - Payment of Green Trust Principal
Balance December 31, 2010
30,426.57
$
-58-
607,263.36
576,836.79
19400
Exhibit SC-5
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Deferred Charges to Future Taxation -- Unfunded
For the Year Ended December 31, 2010
Analysis of Balance
Dec. 31, 2010
Increased by:
Ordinance
Number
97-03
97-16
06-28
07-09
07-11
07-12
10-15
Improvement Description
Purchase of Ambulance and Trash Truck
Various Improvements
Construction of a Riverfront Walk
Construction of a Riverfront Walk
Rehabilitation of the Penns Grove Wastewater
Treatment Plant
Acquisition of a Street Sweeper
Acquisition of Refuse Truck
Balance
Dec. 31, 2009
$
Decreased by:
2010
Authorizations
78,835.00
9,910.00
228,000.00
100,000.00
Canceled
$
59,454.08
9,910.00
7,156.00
$
199,500.00
$
199,500.00
$
76,520.08
-59-
Balance
Dec. 31, 2010
$
$
228,000.00
152,000.00
$ 796,745.00
Payment
of
Notes
$
19,380.92
6,000.00
12,000.00
222,000.00
88,000.00
33,000.00
16,000.00
195,000.00
128,844.00
199,500.00
67,000.00
$ 852,724.92
Expenditures
$
Financed by
Bond
Anticipation
Notes
Unexpended
Improvement
Authorization
19,380.92
$ 222,000.00
88,000.00
344.00
195,000.00
128,500.00
$ 199,500.00
$
19,724.92
$ 633,500.00
$ 199,500.00
19400
Exhibit SC-6
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Capital Improvement Fund
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Cancelled Improvement Authorizations
Budget Appropriation - Current Fund
$
48,413.74
16,474.09
10,000.00
26,474.09
74,887.83
Decreased by:
Improvement Authorization
10,500.00
Balance December 31, 2010
$
64,387.83
Exhibit SC-7
GENERAL CAPITAL FUND
Statement of Due from Current Fund
For the Year Ended December 31, 2010
Balance December 31, 2009
$
Increased by:
Disbursed to Current Fund
36,377.71
20,000.00
56,377.71
Decreased by:
Interest Earnings
85.14
Balance December 31, 2010
$
-60-
56,292.57
19400
Exhibit SC-8
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Improvement Authorizations
For the Year Ended December 31, 2010
Improvement Description
Purchase of Ambulance and Trash Truck
Various Improvements
Reconstruction of West Harmony Street
Upgrade of Police Computers
Installation of New Phone System
Paving of Borough Parking Lot
Acquisition of an Emergency Response Vehicle
Acquisition of a Street Sweeper
Acquisition of Refuse Truck
Balance
Dec. 31, 2009
Funded
Unfunded
Ordinance
Number
Amount
97-03
97-16
03-16
05-04
05-05
05-06
05-09
07-12
10-15
$ 240,000.00
135,000.00
15,000.00
25,000.00
20,000.00
25,000.00
141,000.00
160,000.00
210,000.00
$
2,375.90
6,292.95
402.24
2,903.00
25,000.00
4,500.00
2010
Authorizations
$ 59,454.08
9,910.00
Canceled
$ 59,454.08
12,285.90
6,292.95
402.24
2,903.00
$ 25,000.00
4,500.00
7,156.00
7,156.00
$ 210,000.00
$ 41,474.09
$ 76,520.08
Deferred Charges to Future Taxation - Unfunded
Capital Improvement Fund
-61-
Balance
Dec. 31, 2010
Funded
Unfunded
$ 210,000.00
$ 92,994.17
$ 199,500.00
10,500.00
$ 76,520.08
16,474.09
$ 210,000.00
$ 92,994.17
10,500.00
$ 199,500.00
$ 35,500.00
$ 199,500.00
19400
Exhibit SC-9
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Green Trust Loan Payable
For the Year Ended December 31, 2010
Purpose
Barber Avenue Park
Construction of Riverwalk
Date of
Issue
Amount of
Original
Issue
2004
$ 58,866.99
2007
99,900.00
Maturities of
Bonds Outstanding
December 31, 2010
Date
Amount
Interest
Rate
Balance
Dec. 31, 2009
2011
2012
2013
2014
2015
2016
2017
2018
4,191.29
4,275.53
4,361.46
4,449.13
4,538.56
4,629.79
4,722.84
2,396.92
2.00%
$ 37,674.22
4,789.11
4,885.37
4,983.57
5,083.74
5,185.92
5,290.16
5,396.49
5,504.97
5,615.62
5,728.48
5,843.63
5,961.08
6,080.91
6,203.13
6,327.82
3,211.45
2.00%
90,786.20
$
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Payments
$
Balance
Dec. 31, 2010
4,108.70
$ 33,565.52
4,694.75
86,091.45
(Continued)
-62-
19400
Exhibit SC-9
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Green Trust Loan Payable
For the Year Ended December 31, 2010
Purpose
Construction of Riverwalk
Date of
Issue
Amount of
Original
Issue
2008
$ 500,000.00
Maturities of
Bonds Outstanding
December 31, 2010
Date
Amount
Interest
Rate
Balance
Dec. 31, 2009
Payments
Balance
Dec. 31, 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2.00%
$ 478,802.94
$ 21,623.12
$ 457,179.82
$ 607,263.36
$ 30,426.57
$ 576,836.79
$ 22,057.74
22,501.10
22,953.37
23,414.73
23,885.37
24,365.46
24,855.21
25,354.80
25,864.44
26,384.31
26,914.63
27,455.62
28,007.48
28,570.42
29,144.69
29,730.50
30,328.08
15,391.87
-63-
19400
Exhibit SC-10
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Bond Anticipation Notes
For the Year Ended December 31, 2010
Ordinance
Number Improvement Description
06-28
07-09
07-11
07-12
Construction of a Riverfront Walk
Construction of a Riverfront Walk
Rehabilitation of the Penns Grove
Wastewater Treatment Plant
Acquisition of a Street Sweeper
Date of
Issue of
Original
Note
Date of
Issue
Date of
Maturity
Interest
Rate
5/25/07
5/25/07
5/20/09
5/19/10
5/19/10
5/19/11
2.44%
2.13%
5/25/07
5/25/07
5/20/09
5/19/10
5/19/10
5/19/11
2.44%
2.13%
100,000.00
12/28/07
12/28/07
12/17/09
12/16/10
12/16/10
12/16/11
1.95%
1.20%
228,000.00
12/28/07
12/28/07
12/17/09
12/16/10
12/16/10
12/16/11
1.95%
1.20%
144,800.00
Balance
Dec. 31, 2009
$
-64-
228,000.00
Decrease
$
$
$ 222,000.00
100,000.00
88,000.00
228,000.00
195,000.00
195,000.00
144,800.00
128,500.00
700,800.00
Balance
Dec. 31, 2010
228,000.00
222,000.00
88,000.00
$
Paid by Budget Appropriations
Cash
Renewals
Increase
$
633,500.00
$
633,500.00
$
633,500.00
128,500.00
$
700,800.00
$
67,000.00
300.00
633,500.00
$
700,800.00
$ 633,500.00
19400
Exhibit SC-11
BOROUGH OF PENNS GROVE
GENERAL CAPITAL FUND
Statement of Bonds and Notes Authorized But Not Issued
For the Year Ended December 31, 2010
Ordinance
Number
97-03
97-16
07-12
10-15
Balance
Dec. 31, 2009
Purchase of Ambulance and Trash Truck
Various Improvements
Acquisition of a Street Sweeper
Acquisition of Refuse Truck
$
Increased by:
2010
Note
Authorizations
Not Renewed
78,835.00
9,910.00
7,200.00
Decreased by
Cancellation
$
$
300.00
$
300.00
59,454.08
9,910.00
7,156.00
$
76,520.08
$ 219,224.92
$ 199,500.00
$
95,945.00
-65-
$ 199,500.00
$
Balance
Dec. 31, 2010
19,380.92
344.00
199,500.00
BOROUGH OF PENNS GROVE
PART 2
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
-66-
19400
BOROUGH OF PENNS GROVE
Schedule of Findings and Recommendations
For the Year Ended December 31, 2010
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. 2010-01
Criteria or Specific Requirement
Government Accounting Standards Board, Statement No. 45, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other than Pensions, requires all local governments to establish standards for the
measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note
disclosures, and, if applicable, required supplementary information (RSI) in the financial report of the local
government.
Condition
The Borough did not obtain an actuarial valuation of its Other Post Employment Benefits (OPEB) required for
footnote disclosure. For CY 2010, the Borough provided its employees and retirees, health insurance coverage
through Horizon Blue Cross Blue Shield of New Jersey.
Effect
The Borough’s note disclosure for Other Post Employment Benefits Other than Pensions does not comply with
the provisions of Government Accounting Standards Board, Statement No. 45.
Cause
The Borough did not obtain the required actuarial valuation of its OPEB.
Recommendation
That the Borough obtain an actuarial valuation of its Other Post Employment Benefits (OPEB) for proper footnote
disclosure.
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.
-67-
19400
BOROUGH OF PENNS GROVE
Schedule of Findings and Recommendations
For the Year Ended December 31, 2010
Schedule of Financial Statement Findings (Cont'd)
Finding No. 2010-02
Criteria or Specific Requirement
Fees collected during a month should be remitted to the Treasurer within a reasonable time period in the following
month.
Condition
All receipts collected by the Construction Office were not transferred to the Treasurer in the following month.
Effect
Understatement of Current Fund Construction Revenues.
Cause
Lack of established internal control policies and procedures.
Recommendation
That all receipts collected by the Construction Office be transferred to the Treasurer in the following month.
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.
Finding No. 2010-03
Criteria or Specific Requirement
N.J.A.C. 5:23-4.17.
Condition
2010 Uniform Construction Code Annual Report was not provided for examination.
Effect
Non-compliance with N.J.A.C. 5:23-4.17.
Cause
Unknown.
Recommendation
That the Uniform Construction Code Annual Report be provided for examination when requested.
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.
-68-
19400
BOROUGH OF PENNS GROVE
Schedule of Findings and Recommendations
For the Year Ended December 31, 2010
Schedule of Financial Statement Findings (Cont'd)
Finding No. 2010-04
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 financial
statements including the related footnotes.
Condition
A general fixed asset accounting system was not properly maintained for the year 2010.
Effect
As the result of the non existence of controls over the Borough’s fixed asset records, the General Fixed Asset
Account Statements could not be prepared and audited resulting in a qualified opinion being issued on the
General Fixed Assets Account Group.
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 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.
-69-
19400
BOROUGH OF PENNS GROVE
Summary Schedule of Prior Year Audit Findings and
Questioned Costs as Prepared by Management
This section identifies the status of prior year findings related to the financial statements and Federal Awards and State
Financial Assistance that are required to be reported in accordance with Government Auditing Standards, OMB Circular
A-133 and State of New Jersey Circular 04-04-OMB.
FINANCIAL STATEMENT FINDINGS
Finding No. 2009-01
Condition
Supporting bid documentation for the purchase of gasoline was unavailable for audit.
Current Status
This condition has been resolved.
Finding No. 2009-02
Condition
Records reflect some landlords paying a registration fee one year but not the following year, with tax records showing no
change in property ownership.
Current Status
This condition has been resolved.
Finding No. 2009-03
Condition
The Borough did not obtain an actuarial valuation of its Other Post Employment Benefits (OPEB) required for footnote
disclosure. For CY 2009, the Borough provided its employees and retirees, health insurance coverage through Horizon
Blue Cross Blue Shield of New Jersey.
Current Status
This condition has not been resolved and is current year finding 2010-01.
Corrective Action Plan
The Borough will obtain actuarial valuation if funds are available.
FEDERAL AWARDS
None
STATE FINANICAL ASSISTANCE PROGRAMS
None
-70-
19400
BOROUGH OF PENNS GROVE
Officials in Office and Surety Bonds
The following officials were in office during the period under audit:
Name
John A. Washington
Tami L. King
Eric Meyers
Carol Mincey
Mark Oliver
Clifford E. Poindexter
Joseph Venello
Sharon Williams
Stephen Labb
Marie Danks
Patricia Capasso Gallo
Marie Louise Procacci
Jeryl Goff
Nicholas T. Lacovara
Sharon O. Bye
Charmaine Bennefield
Adam Telsey
Mark Brunermer
David Avedissian
Gary Salber
Title
Mayor
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Borough Clerk, Municipal Improvement Search Officer,
Registrar of Vital Statistics
Chief Financial Officer
Deputy Treasurer
Tax Collector, Tax Search Officer
Tax Assessor
Construction Code Official
Municipal Judge
Court Administrator
Deputy Court Administrator
Solicitor
Engineer
Borough Prosecutor
Public Defender
All employees are covered under a Blanket Surety Bond from the Joint Insurance Fund in the amount of
$1,000,000.
-71-
-72-