AUDIT - 2016
REPORT OF AUDIT BOROUGH OF MILFORD COUNTY OF HUNTERDON DECEMBER 31, 2016
BOROUGH OF MILFORD, N.J. TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2016
PART I
Exhibit
Page
Independent Auditor's Report
1 - 4
CURRENT FUND A Comparative Balance Sheet- Current Fund
5 - 6
A-1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis - Current Fund A-2 Statement of Revenues - Regulatory Basis A-3 Statement of Expenditures - Regulatory Basis
7
8 - 9
10 - 15
TRUST FUND B Comparative Balance Sheet - Regulatory Basis
16
GENERAL CAPITAL FUND C Comparative Balance Sheet - Regulatory Basis
17 18
C-1 Comparative Schedule of Fund Balance - Regulatory Basis
WATER UTILITY FUND D Comparative Balance Sheet - Regulatory Basis
19 - 20
D-1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis D-2 Comparative Statement of Fund Balance - Regulatory Basis
21 22 22 23
D-3 Statement of Revenues - Regulatory Basis D-4 Statement of Expenditures - Regulatory Basis
SEWER UTILITY FUND E Comparative Balance Sheet - Regulatory Basis E-1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis E-2 Comparative Statement of Fund Balance - Regulatory Basis
24 - 25
26 27 27 28
E-3 Statement of Revenues - Regulatory Basis E-4 Statement of Expenditures - Regulatory Basis
PUBLIC ASSISTANCE FUND F Comparative Balance Sheet - Regulatory Basis
29
FIXED ASSETS G Comparative Statement of General Fixed Assets - Regulatory Basis
30
Exhibit
Page
NOTES TO FINANCIAL STATEMENTS
31 - 59
SUPPLEMENTARY DATA
Officials in Office and Surety Bonds
60 61 62
Schedule of Expenditures of Federal Awards - Schedule 1 Schedule of Expenditures of State Financial Assitance- Schedule 2
Comparative Schedules
63 - 67
CURRENT FUND A-4 Schedule of Cash - Treasurer
68 69 70 71 72
A-5 Schedule of Cash - Tax Collector - Change Fund
A-6 Schedule of Taxes Receivable and Analysis of Property Tax Levy
A-7 Schedule of Tax Title Liens Receivable A-8 Schedule of Revenue Accounts Receivable
A-9 Schedule of Amount Due to State of New Jersey for Veterans and Senior Citizens Deductions
73 74
A-10 Schedule of Interfunds Receivables/(Payables)
A-11 Schedule of Appropriation Reserves
75 76
A-12 Schedule of Various Cash Liabilities and Reserves
77 78 79 80 81 82 83 84 85 86 87 88 89 89 90
A-13 Schedule of Deferred Charges A-14 Schedule of Prepaid Taxes A-15 Schedule of County Taxes Payable
A-16 Schedule of Local School District Taxes Payable A-17 Schedule of Regional High School Taxes Payable A-18 Schedule of Interfunds - Federal and State Grant Fund A-19 Schedule of Grants Receivable - Federal and State Grant Fund
A-20 Schedule of Appropriated Reserves for Grants A-21 Schedule of Unappropriated Reserves for Grants
TRUST FUNDS B-1 Schedule of Cash
B-2 Reserve/(Deficit) for Animal Control Trust Fund Expenditures
B-3 Schedule of Interfunds
B-4 Schedule of Due to State Department of Health
B-5 Schedule of Other Trust Funds
Exhibit
Page
GENERAL CAPITAL FUND C-2 Schedule of Cash C-3 Analysis of Cash
91 92 93 94 95 96 97 98 99
C-4 Schedule of Interfund Accounts Receivable (Payable) C-5 Schedule of Deferred Charges to Future Taxation - Unfunded
C-6 Schedule of Capital Improvement Fund C-7 Schedule of Improvement Authorizations
C-8 Schedule of Various Reserves
C-9 Schedule of Bond Anticipation Notes Payable
C-10 Schedule of Bonds and Notes Authorized But Not Issued
WATER UTILITY FUND D-5 Schedule of Cash
100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 131 132 133
D-6 Schedule of Water Utility Collector Cash
D-7 Schedule of Change Fund
D-8 Schedule of Water Utility Capital Cash D-9 Schedule of Consumer Accounts Receivable D-10 Schedule of Interfund Accounts Receivable (Payable)
D-11 Schedule of Water Overpayments
D-12 Schedule of Fixed Capital
D-13 Schedule of Fixed Capital Authorized and Uncompleted
D-14 Schedule of Grants Receivable D-15 Schedule of Appropriation Reserves
D-16 Schedule of Accrued Interest on Loan And Notes D-17 Schedule of Improvement Authorizations D-18 Schedule of USDA-Rural Development Loan Payable
D-19 Schedule of Reserve for Amortization
D-20 Schedule of Reserves
D-21 Schedule of Deferred Reserve for Amortization D-22 Schedule of Bond Anticipation Notes Payable D-23 Schedule of Bonds and Notes Authorized but Not Issued
SEWER UTILITY FUND E-5 Schedule of Cash
E-6 Schedule of Sewer Utility Collector Cash E-7 Schedule of Sewer Utility Capital Cash E-8 Schedule of Consumer Accounts Receivable E-9 Schedule of Interfund Accounts Receivable (Payable)
E-10 Schedule of Sewer Overpayments
E-11 Schedule of Fixed Capital
E-12 Schedule of Fixed Capital Authorized and Uncompleted
E-13 Schedule of Appropriation Reserves
E-14 Schedule of Accrued Interest on Loans and Notes E-15 Schedule of Sewer Capital Bond Anticipation Notes E-16 Schedule of U.S.D.A. Development Loan E-17 Schedule of Improvement Authorizations E-18 Schedule of Capital Improvement Fund E-19 Schedule of Reserve for Amortization E-20 Schedule of Deferred Reserve for Amortization E-21 Schedule of Various Reserve for Sewer Capital
Exhibit
Page
PUBLIC ASSISTANCE FUND F-1 Schedule of Cash -Treasurer
134 135 136 137 137 138 138
F-2 Schedule of Cash and Reconciliation Per N.J.S. 40A:5-5
F-3 Schedule of Cash and Reconciliation F-4 Schedule of Revenues - Cash Basis F-5 Schedule of Expenditures - Cash Basis F-6 Schedule Reserve for Public Assistance F-7 Schedule of Interfund Current Fund
PART II
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards
139 - 140
Schedule of Findings and Responses
141
Summary Schedule of Prior Year Audit Findings
142
GENERAL COMMENTS
Cash Balances
143 143 144 145 145 145
Contracts and Agreements Required
Collection of Interest on Delinquent Taxes and Assessments
Delinquent Taxes and Tax Title Liens
Verification of Delinquent Taxes and Other Charges
Municipal Court
OTHER COMMENTS
Segregation of Duties
146 146 146 146 147
Interfunds
Finance
Animal Control Municipal Clerk
RECOMMENDATIONS
148
STATUS OF PRIOR YEAR'S AUDIT FINDINGS/RECOMMENDATIONS
148
BOROUGH OF MILFORD
PART I
REPORT OF AUDIT ON FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA
YEAR ENDED DECEMBER 31, 2016
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
Newton Office 100B Main Street Newton, N.J. 07860 973-579-3212 Fax 973-579-7128
Charles J. Ferraioli, Jr., MBA, CPA, RMA Steven D. Wielkotz, CPA, RMA James J. Cerullo, CPA, RMA Paul J. Cuva, CPA, RMA Thomas M. Ferry, CPA, RMA
Certified Public Accountants 401 Wanaque Avenue Pompton Lakes, New Jersey 07442 973-835-7900 Fax 973-835-6631
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of the Borough Council Borough of Milford Milford, New Jersey 08848
Report on the Financial Statements
We have audited the accompanying balance sheets - regulatory basis of the various funds and account group of the Borough of Milford in the County of Hunterdon, as of December 31, 2016 and 2015, the related statement of operations and changes in fund balance - regulatory basis for the years then ended, and the related statement of revenues - regulatory basis and statement of expenditures - regulatory basis of the various funds for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the Borough's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance 'with auditing standards generally accepted in the United States of America, the audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfotin the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
1
Honorable Mayor and Members of the Borough Council Page 2
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements, the financial statements are prepared by the Borough of Milford on the basis of the financial reporting provisions prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of New Jersey. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles" paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of each fund of the Borough of Milford as of December 31, 2016 and 2015, or changes in financial position for the years then ended.
Basis for Qualified Opinion on Regulatory Basis Accounting Principles
We are unable to obtain sufficient evidence to support the cost of fixed assets. As more fully describe in Note 1, due to the length of time over which these fixed assets were acquired, it is not practical to determine their actual costs. We are, therefore, unable to express an opinion as to the general fixed assets account group at at December 31, 2016, and 2015, stated as $5,457,415.80 and $5,207,642.00.00, respectively.
2
Honorable Mayor and Members of the Borough Council Page 3
Qualified Opinion on Regulatory Basis ofAccounting
In our opinion, except for the effects of the matter described in "Basis for Qualified Opinion on Regulatory Basis Accounting Principles" paragraph, the financial statements referred to above present fairly, in all material respects, the regulatory basis balances sheets as of December 31, 2016 and 2015, the regulatory basis statements of operations for the years then ended and the regulatory basis statements of revenues and expenditures for the year ended December 31, 2016 in accordance with the basis of financial reporting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note 1.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Borough of Milford's basic financial statements. The supplementary information listed in the table of contents and the letter of comments and recommendations section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental information listed in the table of contents are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such infoimation has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such infoimation directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The letter of comments and recommendations section has not been subject to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
3
Honorable Mayor and Members of the Borough Council Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2017, on our consideration of the Borough of Milford's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Borough of Milford's internal control over financial reporting and compliance.
Thomas Merry, C.P.A. Registered Municipal Accountant No. 497 eitaide, 7eieeffecry, &tact & pi4 FERRAIOLL WIELKOTZ, CERULLO & CUVA, P.A. Certified Public Accountants
Newton, New Jersey
June 23, 2017
4
A Page 1 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Current Fund
December 31,
Ref.
2016
2015
Assets Current Fund: Cash
A-4 A-5
1,241,897.34
1,248,603.06
Change Fund
50.00
50.00
1,241,947.34
1,248,653.06
1,241,947.34
1,248,653.06
Receivables and Other Assets with Full Reserves: Delinquent Taxes Receivable
A-6 A-7
84,506.56 102,744.80
110,341.08 95,137.64
Tax Title Liens Receivable Interfund Receivables: Federal and State Grant Fund Animal Control Trust Fund
A-10 A-10 A-10
34,536.00
32,250.00
245.70
0.31
General Capital
94,910.11 316,943.17
237,729.03
Deferred Charges: Over-expenditure of Appropriation
A-13
1,830.31
1,558,890.51
1,488,212.40
Federal and State Grant Fund: Interfund Receivable - General Capital
A-18
40,000.00
40,000.00
1,598,890.51
1,528,212.40
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
5
A Page 2 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Current Fund
December 31,
Ref.
2016
2015
Liabilities, Reserves and Fund Balance
Current Fund: Appropriation Reserves Unencumbered
A-3;A-11
50,070.95 40,741.13
111,108.07
Encumbered
A-3
Due to State of New Jersey: Senior Citizen and Veteran Deductions
A-9
5,893.20
5,869.23
Interfunds Payable: General Capital Fund
A-10 A-10 A-10 A-10
66,741.20 34,876.08 6,706.80 4,515.27
Other Trust
64,556.54
Sewer Operating Water Operating
Due to State of New Jersey: Marriage Surcharge
A-12 A-12
75.00
100.00
Tax Overpayments
4,083.36
10,791.30
Reserve for: Prepaid Taxes
A-14 A-15 A-16 A-17
18,381.71
24,228.70
County Taxes Payable
37.94
47.41
District School Taxes Payable Regional School Taxes Payable
75,464.96 159,327.70 418,632.49 316,943.17 823,314.85 1,558,890.51
65,343.30 129,222.70 459,550.06 237,729.03 790,933.31 1,488,212.40
Reserve for Receivables
Contra
Fund Balance
A-1
Federal and State Grant Fund: Interfund Payable - Current Fund Appropriated Reserve for Grants
A-18 A-20 A-21
34,536.00 1,250.00 4,214.00 40,000.00
32,250.00 1,250.00 6,500.00 40,000.00
Unappropriated Reserve for Grants
1,598,890.51
1,528,212.40
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
6
A-1
Borough of Milford, N.J.
Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis
Current Fund
Years Ended December 31,
Ref.
2016
2015
Revenues and Other Income: Fund Balance Utilized
A-2 A-2 A-2 A-2 A-2
155,801.00 325,001.52 114,159.99 3,813,031.57
120,000.00 333,662.20 152,259.17 3,698,725.12
Miscellaneous Revenue Anticipated Receipts from Delinquent Taxes Receipts from Current Taxes Non-Budget Revenue Other Credits to Income: Interfunds Returned Appropriated Grants Cancelled Unexpended Balance of Appropriation Reserves Various Reserves Cancelled Total Revenues and Other Income Expenditures: Budget and Emergency Appropriations: Operations - Within Caps: Salaries and Wages Statutory Excess - Animal Control Trust
37,769.70
45,984.95
6,820.25
A-10 A-10
2,500.00
245.18
A-11 A-12
71,107,60
65,203.74
25.00
4,519,641.56
4,422,655.43
A-3 A-3
178,869.00 654,472,00
184,091.00 655,780.00
Other Expenses
Deferred Charges and Statutory Expenditures - Municipal - Within Caps
A-3
68,550.31
64,229.00
Operations - Excluded From CAPS: Other Expenses
A-3 A-3
89,500.00 156,000,00
88,677.18 86,000.00
Capital Improvements - Excluded from Caps Deferred Charges and Statutory Expenditures - Municipal - Excluded from Caps
98,156.00
Interfund Advances
A-10 A-15 A-16 A-17
97,441.50 415,032.21 1,901,163.00 770,431.00 4,331,459,02
0.18
County Taxes including Added Taxes
387,610.52 1,912,406.00 712,110.00 4,189,059.88
Local District School Tax Regional High School Tax
Total Expenditures
Excess (Deficit) Revenue Over Expenditures
188,182,54
233,595.55
Fund Balance, January 1,
A
790,933.31 979,115.85
677,337.76 910,933.31
Decreased by: Fund Balance Utilized as Budget Revenue
155,801.00
120,000.00
Fund Balance, December 31,
A
823,314.85
790,933.31
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
7
A-2
Borough of Milford, N.J.
Page 1 of 2
Statement of Revenues - Regulatory Basis Current Fund For Year Ended December 31, 2016
Excess or (Deficit)
Ref.
Budget
Realized
Fund Balance Anticipated
A-1
155,801.00
155,801.00
Miscellaneous Revenues: Licenses: Alcoholic Beverages
A-8
5,800.00
5,987.73
187.73
Fines and Costs:
Municipal Court
A-8 A-8 A-8 A-8 A-8 A-8
5,000.00 23,000.00
5,501.03 19,963.57
501.03
Interest and Costs on Taxes
(3,036.43)
Interest on Investments and Deposits
525.00
814.19
289.19
Consolidated Municipal Property Tax Relief Act
39,908.00 238,406.00
39,908.00 238,406.00
Energy Receipts Tax Garden State Trust
7,921.00
7,921.00
Special Items of General Revenue Anticipated With Prior Written Consent of Director of
Local Government Services: Public and Private Revenues: Keeping America Beautiful
A-19 A-19
2,500.00 4,000.00
2,500.00 4,000.00
Clean Communities
Total Miscellaneous Revenues
A-1
327,060.00
325,001.52
(2,058.48)
Receipts from Delinquent Taxes
A-1;A-2
110,000.00 592,861.00
114,159.99 594,962.51
4,159.99 2,101.51
Subtotal General Revenues
Amount to be Raised by Taxes for Support of Municipal Budget-Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes
A-2
826,382.00
858,895.36
32,513.36
Budget Totals
1,419,243.00
1,453,857.87
34,614.87
Non-Budget Revenue
A-1;A-2
37,769.70
37,769.70
1,419,243.00
1,491,627.57
72,384.57
A-3
' The accompanying "Notes to Financial Statements" are an integral part of these financial statements. 8
A-2
Borough of Milford, N.J.
Page 2 of 2
Statement of Revenues - Regulatory Current Fund For Year Ended December
Basis
31, 2016
Analysis of Realized Revenues
Ref.
Revenue from Collections
A-1;A-6
3,813,031.57
Allocated to School and County Taxes
A-6
3,086,626.21
Balance for Support of Municipal Budget Appropriations
726,405.36
Add : Appropriation - Reserve for Uncollected Taxes
A-3
132,490.00
Amount for Support of Municipal Budget Appropriations
A-2
858,895.36
Receipts from Delinquent Taxes: Delinquent Taxes Taxes Receivable
A-2;A-6
114,159.99
Analysis of Non-budget Revenues
Miscellaneous Revenues Not Anticipated: Rentals
17,250.94 4,413.70 1,095.00
Fire Inspection Fees
Board of Health/Registrar of Vital Statistics
Planning, Zoning, & Land Use Cable T.V. Franchise Fee
750.00
5,555.00 6,461.39
FEMA
Scrap Metal
28.50
Senior Citizen And Veterans Administrative Fee
255.48
Miscellaneous
1,959.69
A-4
37,769.70
A-2
The accompanying "Notes to Financial Statements" are an integral part of these financial statements. 9
A-3
Unexpended Balance
Cancelled
Page 1 of 6
1.00
53.63
533.78
384.64
223.65
3,076.47
3,616.50
5,453.07
1,352.00
12,519.64
13,823.34
Reserved
946.37
8,380.36
4,615.36
1,776.35
3,383.50
9,038.00
6,815.50
66,466.22
26,923.53
11,330.00
12,468.00
Paid or
36,176.66
18,546.93
Charged
5,000.00
1,000.00
2,000.00
7,000.00
9,039.00
8,167.50
After
67,000.00
30,000.00
11,330.00
20,900.00
12,468.00
50,000.00
Budget
24,000.00
Modification
5,000.00
1,000.00
2,000.00
7,000.00
8,775.00
7,000.00
67,000.00
30,000.00
18,900.00
11,330.00
12,468.00
50,000.00
Budget
24,000.00
Current Fund
Ref.
Borough of Milford, N.J.
Year Ended December 31, 2016
Statement of Expenditures - Regulatory Basis
General Appropriations
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Municipal Land Use Law (N.J.S.A. 40:55 D-1 Et Seq.) Planning Board Salaries and Wages Other Expenses
Administrative and Executive Salaries and Wages Other Expenses Other Expenses
Financial Administration Salaries and Wages
Assessment of Taxes Salaries and Wages Other Expenses
Salaries and Wages Other Expenses
Legal Services and Costs: Other Expenses
Engineering Services and Costs Other Expenses
Public Buildings and Grounds Other Expenses
Collection of Taxes
General Government:
. o
A-3
Unexpended Balance
Reserved Cancelled
Page 2 of 6
Fire Prevention Bureau Uniform Fire Safety Inspect. (Pl. 1983, Ch. 383) Salaries and Wages 5,398.00 5,398.00 5,398.00 Other Expenses 500.00 500.00 445.00 55.00 Police - Crossing Guards Salaries and Wages 14,000.00 14,000.00 11,699.69 2,300.31 Other Expenses 500.00 500.00 95.16 404.84
First Aid Organization - Contribution 38,331.00 38,331.00 38,331.00 Emergency Management Services Salaries and Wages 1,475.00 1,475.00 1,475.00 Other Expenses 1,000.00 1,000.00 57.60 942.40 Streets and Roads
Road Repair and Maintenance Salaries and Wages 49,000.00 49,000.00 48,442.15 557.85 Other Expenses 60,000.00 55,568.50 37,819.68 17,748.82
Salaries and Wages 4,159.00 4,159.00 4,159.00
Fire Hydrant Service 14,080.00 14,080.00 14,080.00 Aid to Milford Volunteer Fire Company 42,500.00 42,500.00 42,500.00
Paid or
Charged
After
Budget
Modification
Year Ended December 31, 2016 General Appropriations Ref. Budget
Current Fund
Borough of Milford, N.J.
Statement of Expenditures - Regulatory Basis
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Zoning Officer
Public Safety: Fire Other Expenses
Total Operations Including Contingent- Within "Caps" 834,341.00 833,341.00 748,522.02 84,818.98 Detail: Salaries and Wages A-1 178,605.00 178,869.00 175,091.42 3,777.58 Other Expenses (Including Contingent) A-1 655,736.00 654,472.00 573,430.60 81,041.40 Deferred Charges and Statutory Expenditures- Municipal - Excluded from "Caps" Expenditure Without an Appropriation 1,831.00 1,831.00 1,830.31 0.00 0.69
A-3
Unexpended Balance
Cancelled
Page 3 of 6
Garbage and Trash Removal Other Expenses 101,000.00 101,000.00 90,609.29 10,390.71 Dog Regulations Other Expenses 2,500.00 2,500.00 2,199.96 300.04
Recreation and Education Parks and Playgrounds Other Expenses 2,500.00 2,500.00 1,706.70 793.30 Insurance
General Liability 76,619.00 76,619.00 76,369.00 250.00
Employee Group Health 113,000.00 113,000.00 109,496.39 3,503.61 Health Benefit Waiver 2,782.00 2,782.00 2,782.00 Electricity 5,200.00 5,200.00 3,145.99 2,054.01 Street Lighting 21,000.00 21,000.00 16,519.63 4,480.37
Charged Reserved
Workers Compensation 34,324.00 34,324.00 34,324.00
Paid or
After
Budget
Modification
Year Ended December 31, 2016 General Appropriations Ref Budget
Current Fund
Borough of Milford, N.J.
Statement of Expenditures - Regulatory Basis
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Sanitation
Expenditures - Municipal within "CAPS" A-1 68,551.00 68,551.00 63,788.48 4,761.83 0.69 Total General Appropriations for Municipal Purposes- Within "CAPS" 902,892.00 901,892.00 812,310.50 89,580.81 0.69
A-3
Other Operations Excluded from "CAPS" Council on Affordable Housing (COAH) 10,000.00 1 0, 0 0 0 . 0 0 10,000.00 Maintenance of Free Public Library 48,000.00 49,000.00 47,928.19 1,071.81 Refund of Tax Appeals 50,000.00 50,000.00 50,000.00
Unexpended Balance
Total Other Operations - Excluded From Caps 108,000.00 109,000.00 57,928.19 1,071.81 50,000.00 Shared Service Agreements Municipal Court: Other Expenses 24,000.00 24,000.00 23,840.54 159.46
General Appropriations Ref. Budget Modification Charged Reserved Cancelled
Page 4 of 6
Unemployment Compensation Insurance 3,400.00 3,400.00 2,076.77 1,323.23
Public Employees' Retirement System 43,820.00 43,820.00 43,820.00 Social Security System (O.A.S.I.) 19,500.00 19,500.00 16,061.40 3,438.60
Public and Private Programs Offset By Revenues Clean Communities 4,000.00 4,000.00 4,000.00 Other Expenses
After Paid or
Budget
Current Fund
Borough of Milford, N.J.
Year Ended December 31, 2016
Statement of Expenditures - Regulatory Basis
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Statutory Expenditures Contribution to:
Total Deferred Charged and Statutory
Total Capital Improvements Excluded from "CAPS" A-1 156,000.00 156,000.00 156,000.00 Deferred Charges Ord #753-09 79,756.00 79,756.00 79,756.00 Ord #794-12 9,605.00 9,605.00 9,605.00 Total Deferred Charges 89,361.00 89,361.00 89,361.00
Total Public and Private Programs Offset By Revenues 6,500.00 6,500.00 6,500.00 Total Operations - Excluded from "CAPS" 138,500.00 139,500.00 88,268.73 1,231.27 50,000.00 Detail: Other Expenses A-1 138,500.00 139,500.00 88,268.73 1,231.27 50,000.00
A-3
Unexpended Balance
Cancelled
Total General Appropriations - Excluded From "Caps" 383,861.00 384,861.00 244,268.73 1,231.27 139,361.00 Subtotal General Appropriations 1,286,753.00 1,286,753.00 1,056,579.23 90,812.08 139,361.69
Page 5 of 6
Charged Reserved
Keep America Beautiful Other Expenses 2,500.00 2,500.00 2,500.00
Capital Improvements - Excluded From "Caps" Capital Improvement Fund 120,000.00 120,000.00 120,000.00 Purchase of Fire Apparatus 25,000.00 25,000.00 11,000.00 Purchase of Ambulance 11,000.00 11,000.00 25,000.00
Paid or
After
Budget
Modification
Year Ended December 31, 2016 General Appropriations Ref Budget
Current Fund
Borough of Milford, N.J.
Statement of Expenditures - Regulatory Basis
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Z.
A-3
Unexpended Balance
Cancelled
1,419,243.00 1,419,243.00 1,189,069.23 90,812.08 139,361.69 A-2 132,490.00 1,045,748.92 2,500.00 1,830.31 6,500.00 1,189,069.23
Page 6 of 6
Analysis of Appropriation Reserve Unencumbered A 50,070.95 Encumbered A 40,741.13 90,812.08
Charged Reserved
Paid or
132,490.00 132,490.00 132,490.00
After
Budget.
Modification
Year Ended December 31, 2016 General Appropriations Ref. Budget
Current Fund
A-2
A-4
Ref
A-10
A-13
A-20
Borough of Milford, N.J.
Statement of Expenditures - Regulatory Basis
Analysis of Paid or Charged
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Reserve for Uncollected Taxes Cash Disbursed Interfunds
Deferred Charges - Overexpenditure Reserve for Federal and State Grants
Reserve for Uncollected Taxes
Total General Appropriations
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Trust Funds
December 31,
Ref.
2016
2015
Assets
Animal Control Trust Fund: Cash
B-1
2,236.90
1,553.69
Other Trust Funds: Cash
B-1 B-3
163,160.68 64,556.54 227,717.22
146,468.12 34,876.08 181,344.20
Interfund - Current Fund
229,954.12
182,897.89
Liabilities, Reserves & Fund Balance
Animal Control Fund: Reserve for Animal Control Trust Fund Expenditures
B-2 B-3 B-4
1,965.20
1,533.78
Interfund - Current Fund
245.70
0.31
Due to State Department of Health
26.00
19.60
2,236.90
1,553.69
Other Trust Fund: Reserve for:
Escrow Deposits Payroll Deductions Tax Sale Premiums
B-5 B-5 B-5 B-5 B-5 B-5 B-5
63,297.22 19,624.28 67,500.00
33,407.09 19,624.66 39,200.00
POAA
2.00
2.00
Public Defender Outside Liens
450.00
450.00
19,425.16 57,418.56 227,717.22
COAH
88,660.45 181,344.20
229,954.12
182,897.89
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
16
C
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
General Capital Fund
December 31,
Ref.
2016
2015
Assets
Cash
C-2;C-3
584,725.86
320,222.67 66,741.20 903,350.00 1,290,313.87
Interfund - Current
C-4 C-5
Deferred Charges to Future Taxation - Unfunded
704,021.05 1,288,746.91
Liabilities, Reserves and Fund Balance
Interfund - Federal and State Grant Fund
C-4 C-4 C-6
40,000.00 94,910.11 41,081.23
40,000.00
Interfund - Current Fund Capital Improvement Fund Improvement Authorizations: Funded
C-7 C-7
137,648.02
190,003.09 773,229.54
Unfunded
36,900.19.
Reserve for: Fire Apparatus and Equipment
C-8 C-8 C-9 C-1
165,661.60 77,000.00 610,000.00 85,545.76 1,288,746.91
140,661.60 66,000.00
Ambulance
Bond Anticipation Notes Payable
Fund Balance
80,419.64
1,290,313.87
There were Bonds and Notes Authorized But Not Issued in the amount of $134,600.00 and $903,350.00 on December 31, 2016 and 2015 per Exhibit C-10.
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
17
C-1
Borough of Milford, N.J.
Comparative Schedule of Fund Balance - Regulatory Basis
General Capital Fund
Year Ended December 31,
Ref.
2016
2015
Balance - Januar), 1,
C
80,419.64
172,559.20
Increased by: Premium on Bond Anticipation Note
C-4
5,126.12
Balance - December 31,
C
85,545.76
80,419.64
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
18
D Page 1 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Water Utility Fund
December 31,
Ref
2016
2015
Assets
Operating Fund: Cash-Treasurer
D-5 D-7
116,943.56
99,402.85
Cash-Change Fund
50.00
50.00
116,993.56
99,452.85
Interfund Receivable: Current Fund
D-10
4,515.27
116,993.56
103,968.12
Receivables with Full Reserves: Consumers Account Receivable
D-9
33,966.56
32,513.77
Total Operating Fund
150,960.12
136,481.89
Capital Fund: Cash
D-5;D-8
374,824.90
358,041.68
Due from Water Operating Fund
D-10 D-12 D-13 D-14
3,517.85
5,348.83
Fixed Capital*
2,052,745.24 2,210,000.00
2,052,745.24 2,155,000.00 120,371.00 4,691,506.75
Fixed Capital Authorized and Uncompleted*
Grants Receivable
61,961.00
Total Capital Fund
4,703,048.99
Total Assets
4,854,009.11
4,827,988.64
* The fixed capital reported is taken from the municipal records and does not necessarily reflect the true condition of such fixed capital.
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
19
D Page 2 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Water Utility Fund
December 31,
Liabilities, Reserves and Fund Balance
Ref.
2016
2015
Operating Fund:
Appropriation Reserve: Unencumbered
D-4;D-15
12,831.36 9,273.46 19,433.21 1,561.39 3,517.85 46,617.27 33,966.56 70,376.29 150,960.12 717,591.98 1,298,333.79 1,999,595.45 68,098.78 482,000.00 132,816.00
19,235.34
Encumbered
D-4
Accrued Interest on Loans and Notes
D-16 D-11
27,607.02
Water Overpayments Interfund Payable: Water Capital
632.10
D-10
5,348.83 52,823.29 32,513.77 51,144.83 136,481.89
Reserve for Receivables
Contra
Fund Balance
D-1
Total Operating Fund
Capital Fund: Improvement Authorizations: Unfunded
D-17 D-18 D-19 D-20 D-21 D-22
723,280.17 1,325,311.48 1,901,697.76 105,868.35 427,000.00 203,736.00
Loans Payable
Reserve for Amortization Reserve for Capital Outlay
Reserve for Deferred Amortization Bond Anticipation Notes Payable
Fund Balance
D-2
4,612.99
4,612.99
Total Capital Fund
4,703,048.99
4,691,506.75
4,854,009.11
4,827,988.64
Footnote D: There were Bonds and Notes Authorized But Not Issued in the Amount, of $350,000.00 on December 31, 2016 and 2015 as per Exhibit D-23
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
20
D-1
Borough of Milford, N.J.
Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis
Water Utility Operating Fund
Years Ended December 31,
Ref.
2016
2015
Revenue and Other Income Realized: Operating Surplus Anticipated
D-3 D-3 D-3 D-3
44,351.00 373,468.22 17,760.00
36,944.00 342,305.62 15,100.00
Rents
Fire Hydrant Services
Miscellaneous
625.70
1,005.05
Other Credits to Income: . Unexpended Balance of Appropriation Reserves
D-15
4,728.54
19,031.47 414,386.14
Total Income
440,933.46
Expenditures: Operating
D-4 D-4 D-4
210,229.00 15,000.00 140,797.00
197,733.43
Capital Improvements
Debt Service
160,708.75
Deferred Charges and Statutory Expenditures
D-4
11,325.00 377,351.00
10,501.57 368,943.75
Total Expenditures
Statutory Excess to Surplus
63,582.46
45,442.39
Fund Balance - January 1,
D;D-1
51,144.83 114,727.29
42,646.44 88,088.83
Decreased by: Utilized as Anticipated Revenue
44,351.00
36,944.00
Fund Balance - December 31,
D
70,376.29
51,144.83
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
21
D-2
Borough of Milford, N.J.
Comparative Statement of Fund Balance - Regulatory Basis
Water Utility Capital Fund
Years Ended December 31,
2016
2015
Ref.
Balance - January 1,
D
4,612.99
16,687.99
Increased by: Cancellation of Improvement Authorizations
200.00 16,887.99
Decreased by: Appropriated to Finance Improvement Authorizations
12,275.00
Balance - December 31,
4,612.99
4,612.99
D-3
Statement of Revenues - Regulatory Basis
Water Utility Operating Fund
Year Ended December 31, 2016
Excess
Ref.
Anticipated
Realized
(Deficit)
Operating Surplus Anticipated
D-1
44,351.00 318,000.00 15,000.00
44,351.00 373,468.22 17,760.00
Rents
D-1;D-9 D-1;D-6 D-1;D-3
55,468.22 2,760.00
Fire Hydrant Services
Miscellaneous Budget Totals
625.70
625.70
377,351.00
436,204.92
58,853.92
D-4
Analysis of Realized Revenues Miscellaneous: Interest on Deposits: Water Operating Fund
D-5
203.12
Water Capital Fund
D-10
22.58
Miscellaneous
D-6
400.00
625.70
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
22
D-4
Borough of Milford, N.J.
Statement of Expenditures - Regulatory Basis
Water Utility Operating Fund
Year Ended December 31, 2016
Budget After
Expended
Paid or Charged
Ref.
Budget
Modification
Reserved
Operating:
Salaries and Wages
102,229.00 108,000.00 210,229.00
102,229.00 108,000.00 210,229.00
102,229.00 86,040.57 188,269.57
Other Expenses
21,959.43 21,959.43
Total Operating
D-1
Capital Improvements Capital Outlay
15,000.00 15,000.00
15,000.00 15,000.00
15,000.00 15,000.00
Total Capital Improvements
D-1
Debt Service: Payment of Bond Anticipation Notes and Capital Notes
70,920.00 26,968.00 42,909.00 140,797.00
70,920.00 26,977.69 42,899.31 140,797.00
70,920.00 26,977.69 42,899.31 140,797.00
USDA-Rural Development Loan Principal USDA-Rural Development Loan Interest
Total Debt Service
D-1
Deferred Charges and Statutory Expenditures Statutory Expenditures: Contribution to: Public Employees' Retirement System
3,000.00 7,825.00
3,000.00 7,821.65
3,000.00 7,676.26
Social Security System (O.A.S.I.)
145.39
Unemployment Compensation Insurance
500.00
503.35
503.35
Total Deferred Charges and Statutory Expenditures
D-1
11,325.00
11,325.00
11,179.61
145.39
377,351.00
377,351.00
355,246.18
22,104.82
D-3
Ref.
Analysis of Paid or Charged
D-5 Cash Disbursed Interfund - Water Capital Fund D-10
308,806.44
3,540.43
Accrued Interest D-16
42,899.31 355,246.18
Analysis of Appropriation Reserve Unencumbered
D D
12,831.36 9,273.46 22,104.82
Encumbered
The accompanying "Notes to Financial Statements" are an integral part of these financial statements. 23
E
Page 1 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Sewer Utility Fund
December 31,
Ref.
2016
2015
Assets
Operating Fund: Cash-Treasurer
E-5 E-9
815,224.33
714,235.43
Due from Current Fund
6,706.80
815,224.33
720,942.23
Receivables with Full Reserves: Consumers Account Receivable
E-8
66,414.00
63,551.86
Total Operating Fund
881,638.33
784,494.09
Capital Fund: Cash
E-5;E-7
926,505.48 27,134.46 3,856,356.47 4,662,500.00 9,472,496.41
925,702.00
Due from Sewer Operating Fund
E-9
634.30
Fixed Capital*
E-11 E-12
3,856,356.47 4,662,500.00 9,445,192.77
Fixed Capital Authorized and Uncompleted*
Total Capital Fund
Total Assets
10,354,134.74
10,229,686.86
* The fixed capital reported is taken from the municipal records and does not necessarily reflect the true condition of such fixed capital.
The accompanying "Notes to Financial Statements" are an integral part of these financial statements. 24
E
Page 2 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Sewer Utility Fund
December 31,
Ref.
2016
2015
Liabilities, Reserves and Fund Balance
Operating Fund:
Appropriation Reserve: Unencumbered
E-4;E-13
16,685.67 22,229.06
15,853.62
Encumbered
E-4
Interfund Payable:
Sewer Capital Fund Sewer Overpayments
E-9
27,134.46 1,925.93 51,698.93 119,674.05
634.30
E-10 E-14
1,453.27 52,177.84 70,119.03
Accrued Interest on Loans and Notes.
Reserve for Receivables
Contra
66,414.00 695,550.28
63,551.86 650,823.20
Fund Balance
E-1
Total Operating Fund
881,638.33
784,494.09
Capital Fund: Bond Anticipation Note Payable
E-15 E-16
20,000.00
70,000.00
USDA Loan Payable
4,389,970.72
4,463,500.13
Improvement Authorizations: Funded
E-17 E-17 E-18 E-19 E-20 E-21
3,103.00
3,103.00
Unfunded
539,780.55 48,538.75 4,081,385.75 27,500.00 331,595.14 30,622.50 9,472,496.41
539,780.55 48,538.75 3,957,856.34 27,500.00 304,291.50 30,622.50 9,445,192.77
Capital Improvement Fund Reserve for Amortization
Reserve for Deferred Reserve for Amortization
Reserve for Various Reserves
Fund Balance
E-2
Total Capital Fund
Total Liabilities, Reserves and Fund Balances
10,354,134.74
10,229,686.86
Footnote: There were no Bonds and Notes Authorized But Not Issued for the years ended December 31, 2016 and December 31, 2015.
The accompanying "Notes to Financial Statements" 25
are an integral part of these financial statements.
E-1
Borough of Milford, N.J.
Comparative Statement of Operations and Changes, in Fund Balance - Regulatory Basis
Sewer Utility Operating Fund
Years Ended December 31,
Ref
2016
2015
Revenue and Other Income Realized: Operating Surplus Anticipated
E-3 E-3 E-3 E-3
81,090.50 341,732.47 200;000.00
73,662.00 357,286.23 332,439.89
Sewer Service Charges
Holland Township Share of Operating
Interest on Deposits
832.70
676.20
Holland Township Share of Debt Service
E-3
103,441.00
103,441.00 999,237.06
Reserve for Debt Service - Sewer Capital
Miscellaneous
E-3
133,827.91
811.54
Other Credits to Income: Unexpended Balance of Appropriation Reserves
2,410.88
Total Income
860,924.58
1,869,964.80
Expenditures: Operating
E-4 E-4 E-4
414,409.00 50,000.00 257,033.00
406,940.00 50,000.00 256,120.00
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures
E-4
13,665.00 735,107.00
1,013,400.00 1,726,460.00
Total Expenditures
Statutory Excess to Surplus
125,817.58
143,504.80
Fund Balance - January 1,
E;E-1
650,823.20 776,640.78
580,980.40 724,485.20
Decreased by: Utilized as Anticipated Revenue
81,090.50
73,662.00
Fund Balance - December 31,
E
695,550.28
650,823.20
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
26
E-2
Borough of Milford, N.J.
Comparative Statement of Fund Balance - Regulatory Basis
Sewer Utility Capital Fund
Years Ended December 31,
2016
2015
Ref.
E
30,622.50
30,622.50
Balance - January 1,
E
30,622.50
30,622.50
Balance - December 31,
E-3
Statement of Revenues - Regulatory Basis
Sewer Utility Operating Fund
Year Ended December 31, 2016
Excess (Deficit)
Anticipated
Realized
Ref.
81,090.50 341,732.47 200,000.00
81,090.50 350,000.00 200,000.00
E-1
Operating Surplus Anticipated
(8,267.53)
E-1;E-8 E-1;E-6
Sewer Service Charges
Holland Township Share of Operating
332.70
500.00
832.70
E-1
Interest on Deposits
Holland Township Share of USDA Debt Service
103,441.00 133,827.91 860,924.58
(75.50)
103,516.50
E-1;E-6 E-1;E-3
133,827.91 125,817.58
Miscellaneous Budget Totals
735,107.00
E-4
Analysis of Realized Revenues Interest on Deposits: Sewer Operating Fund
663.52 169.18
E-5 E-9 E-3
Sewer Capital Fund
832.70
Analysis of Realized Revenues Miscellaneous
133,807.91
Additional Fees from Holland Township
20.00
Bid Specification
133,827.91
E-3;E-5
The accompanying "Notes to Financial Statements" are an integral part of these financial statements. 27
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