AUDIT - 2017
BOROUGH OF MILFORD
SUMMARY OR SYNOPSIS OF AUDIT REPORT FOR PUBLICATION
Attention is directed to the fact that a summary or synopsis of the audit report, together with the
recommendations, is the minimum required to be published pursuant to N.J.S. 40A : 5 - 7.
Summary or Synopsis of the 2017 Audit Report of the Borough of Milford,
as required by N.J.S. 40A : 5 - 7.
December 31 December 31
ASSETS
Year 2017
Year 2016
Cash, Investments and Prepaid Debt Service Taxes, Assessments, Liens and Utility Charges Receivable Accounts Receivable ( and Inventory )
4,473,326.40
4,227,131.25
319,510.90 97,794.50 5,194,984.00 5,922,500.00 6,511,625.41
417,323.73 197,169.85 5,457,415.80 6,872,500.00 5,909,101.71
General Fixed Assets
Fixed Capital Authorized and Uncompleted - Utility
Fixed Capital - Utility
Deferred Charges to Future Taxation - General Capital
643,021.05
704,021.05
TOTAL ASSETS
23,162,762.26 23,784,663.39
LIABILITIES, RESERVES AND FUND BALANCES
Bond and Notes Payable Improvement Authorizations
6,205,408.19 1,011,848.18 1,869,395.89 5,194,984.00 6,777,717.22 347,082.59 1,756,326.19
6,451,120.51 1,435,023.74 3,722,578.63 5,457,415.80 4,590,885.75 417,323.73 1,710,315.23
Other Liabilities and Special Funds Investment in General Fixed Assets Amortization of Debt for Fixed Capital Acquired or Authorized Reserve for Certain Assets Receivable
Fund Balance
TOTAL LIABILITIES, RESERVES AND SURPLUS
23,162,762.26 23,784,663.39
BOROUGH OF MILFORD, N.J. COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN SURPLUS - CURRENT FUND
2017
2016
Revenue and Other Income Realized
Fund Balance Utilized
155,800.00
155,801.00
Miscellaneous - From Other Than Local Property Tax Levies Collection of Delinquent Taxes and Tax Title Liens
385,745.86
325,001.52
88,323.66
114,159.99 3,813,031.57 111,647.48 4,519,641.56
Collection of Current Tax Levy
3,979,715.05 181,895.52 4,791,480.09
Other Credits to Income
Total Income
Expenditures
Budget Expenditures: Municipal Purpose
1,324,141.08 414,417.80 2,822,915.00
1,147,391.31 415,032.21 2,671,594.00
County Taxes
Local and Regional School Taxes
Other Expenditures Total Expenditures
0.00
97,441.50
4,561,473.88
4,331,459.02
Excess in Revenue
230,006.21
188,182.54
Fund Balance January 1
823,314.85 1,053,321.06
790,933.31 979,115.85
Less: Utilized as Anticipated Revenue
155,800.00
155,801.00
Fund Balance December 31
897,521.06
823,314.85
BOROUGH OF MILFORD, N.J. COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN SURPLUS - WATER UTILITY FUND
2017
2016
Revenue and Other Income Realized
Fund Balance Utilized Collection of Water Rents
35,710.00 367,787.47 17,135.59
44,351.00 373,468.22 18,385.70
Miscellaneous - From other than Water Rents
Other Credits to Income
9,782.06
4,728.54
Total Income
430,415.12
440,933.46
Expenditures
Budget Expenditures: Operating
216,600.00 20,000.00 149,210.00 14,900.00
210,229.00 15,000.00 140,797.00 11,325.00
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures
Other Expenditures Total Expenditures
7,049.44
407,759.44
377,351.00
Statutory Excess to Surplus
22,655.68
63,582.46
Fund Balance January 1
70,376.29 93,031.97
51,144.83 114,727.29
Less: Utilized as Anticipated Revenue
35,710.00
44,351.00
Fund Balance December 31
57,321.97
70,376.29
BOROUGH OF MILFORD, N.J. CHANGE IN SURPLUS - SEWER UTILITY FUND COMPARATIVE STATEMENT OF OPERATIONS AND
2017
2016
Revenue and Other Income Realized
Fund Balance Utilized Collection of Sewer Rents
71,785.00 331,729.50 421,516.94 16,655.77 841,687.21
81,090.50 341,732.47 438,101.61
Miscellaneous - From other than Sewer Rents
Other Credits to Income
Total Income
860,924.58
Expenditures
Budget Expenditures: Operating
424,431.00 50,000.00 223,849.00 17,444.00 715,724.00
414,409.00 50,000.00 257,033.00 13,665.00 735,107.00
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures
Total Expenditures
Statutory Excess to Surplus
125,963.21
125,817.58
Fund Balance January 1
695,550.28 821,513.49
650,823.20 776,640.78
Less: Utilized as Anticipated Revenue
71,785.00
81,090.50
Fund Balance December 31
749,728.49
695,550.28
RECOMMENDATIONS
1. That the Borough consider strengthening Internal Controls.
A Corrective Action Plan outlining actions to be taken by the Borough of Milford to correct the above findings will be prepared in accordance with federal and state guidelines. A copy of the plan will be on file and available for public inspection with the Municipal Clerk in the Borough of Milford no later than 45 days from when the audit was received in compliance with directives from the Division of Local Government Services.
* * * * * *
The above Synopsis was prepared from the Report of Audit of the Borough of Milford, County of Hunterdon, for the calendar year 2017. This Report of Audit, submitted by Thomas M. Ferry, C.P.A., R.M.A. of Ferraioli, Wielkotz, Cerullo & Cuva, P.A., is on file at the Municipal Clerkâs Office and may be inspected by any interested person.
Karen Dysart
Clerk
REPORT OF AUDIT BOROUGH OF MILFORD COUNTY OF HUNTERDON DECEMBER 31, 2017
BOROUGH OF MILFORD, N.J. TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2017
PART I
Page
Exhibit
1 - 4
Independent Auditor's Report
CURRENT FUND A
5 - 6
Comparative Balance Sheet - Current Fund
A-1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis - Current Fund
7
8 - 9
A-2 A-3
Statement of Revenues - Regulatory Basis Statement of Expenditures - Regulatory Basis
10 - 15
TRUST FUND B
16
Comparative Balance Sheet - Regulatory Basis
GENERAL CAPITAL FUND C
17 18
Comparative Balance Sheet - Regulatory Basis
Comparative Schedule of Fund Balance - Regulatory Basis
C-1
WATER UTILITY FUND D
19 - 20
Comparative Balance Sheet - Regulatory Basis
D-1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis D-2 Comparative Statement of Fund Balgice - Regulatory Basis
21 22 22 23
Statement of Revenues - Regulatory Basis Statement of Expenditures - Regulatory Basis
D-3 D-4
SEWER UTILITY FUND E
24 - 25
Comparative Balance Sheet - Regulatory Basis Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis Comparative Statement of Fund Balance - Regulatory Basis
E-1
26 27 27 28
E-2 E-3 E-4
Statement of Revenues - Regulatory Basis Statement of Expenditures - Regulatory Basis
PUBLIC ASSISTANCE FUND F
29
Comparative Balance Sheet - Regulatory Basis
FIXED ASSETS G Comparative Statement of General Fixed Assets - Regulatory Basis
30
Page
Exhibit
31 60
NOTES TO FINANCIAL STATEMENTS
SUPPLEMENTARY DATA
61 62 63
Officials in Office and Surety Bonds
Schedule of Expenditures of Federal Awards - Schedule 1 Schedule of Expenditures of State Financial Assistance- Schedule 2
64 - 68
Comparative Schedules
CURRENT FUND A-4
69 70 71 72 73
Schedule of Cash - Treasurer
Schedule of Cash - Tax Collector - Change Fund
A-5 A-6 A-7 A-8 A-9
Schedule of Taxes Receivable and Analysis of Property Tax Levy
Schedule of Tax Title Liens Receivable Schedule of Revenue Accounts Receivable
Schedule of Amount Due to State of New Jersey for Veterans and Senior Citizens Deductions
74 75
Schedule of Interfunds Receivables/(Payables)
A-10 A-11 A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 A-20 A-21
76 77
Schedule of Appropriation Reserves
78 79 80 81 82 83 84 85 86
Schedule of Various Cash Liabilities and Reserves
Schedule of Prepaid Taxes
Schedule of County Taxes Payable
Schedule of Local School District Taxes Payable Schedule of Regional High School Taxes Payable Schedule of Interfunds - Federal and State Grant Fund Schedule of Grants Receivable - Federal and State Grant Fund
Schedule of Appropriated Reserves for Grants Schedule of Unappropriated Reserves for Grants
87
Schedule of Encumbrances Payable
TRUST FUNDS B-1
88 89 90 90 91
Schedule of Cash
Reserve/(Deficit) for Animal Control Trust Fund Expenditures
B-2 B-3 B-4 B-5
Schedule of Interfunds
Schedule of Due to State Department of Health
Schedule of Other Trust Funds
Page
Exhibit
GENERAL CAPITAL FUND C-2 Schedule of Cash C-3 Analysis of Cash
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
100
WATER UTILITY FUND D-5 Schedule of Cash
101 102 103 104 105 106 107 108 109 110 112 113 114 115 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 132 133
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 Loans 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
134
Page
Exhibit
PUBLIC ASSISTANCE FUND F-1
135 136 137 137 138 138
Schedule of Cash - Treasurer
Schedule of Cash and Reconciliation Schedule of Revenues - Cash Basis Schedule of Expenditures - Cash Basis Schedule Reserve for Public Assistance Schedule of Interfund Current Fund
F-2 F-3 F-4 F-5 F-6
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
141
Schedule of Findings and Responses
142
Summary Schedule of Prior Year Audit Findings
GENERAL COMMENTS
143 143 144 145 145 145
Cash Balances
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
146
Segregation of Duties
147
RECOMMENDATIONS
147
STATUS OF PRIOR YEAR'S AUDIT FINDINGS/RECOMMENDATIONS
BOROUGH OF MILFORD
PART I
REPORT OF AUDIT ON FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA
YEAR ENDED DECEMBER 31, 2017
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
Newton Office 100B Main Street Newton, N.J. 07860 973-579-3212 Fax 973-579-7128
Certified Public Accountants 401 Wanaque Avenue Pompton Lakes, New Jersey 07442 973-835-7900 Fax 973-835-6631
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
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, 2017 and 2016, 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, 2017, 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 ofNew 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 opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the 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 perform 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. 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 deteiminable, are presumed to be material. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
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, 2017 and 2016, or changes in financial position for the years then ended.
2
Honorable Mayor and Members of the Borough Council Page 3
Opinion on Regulatory Basis of Accounting
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, 2017 and 2016, 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, 2017 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 information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such infotmati on 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 22, 2018, 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 M. Ferry, C.P.A. Registered Municipal Accountant No. 497
7orlaiale, 2aieffeary, emieea ea a, Prit FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A. Certified Public Accountants
Newton, New Jersey
June 22, 2018
4
A Page 1 of 2
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Current Fund
December 31,
Ref.
2017
2016
Assets Current Fund: Cash
A-4 A-5
1,507,833.74
1,241,897.34
Change Fund
50.00
50.00
1,507,883.74
1,241,947.34
Receivables and Other Assets with Full Reserves: Delinquent Taxes Receivable
A-6 A-7
100,603.62 109,252.70
84,506.56 102,744.80
Tax Title Liens Receivable Interfund Receivables: Federal and State Grant Fund Animal Control Trust Fund
A-10 A-10 A-10
20,265.19
34,536.00
174.83
245.70
General Capital
82.23
94,910.11 316,943.17 1,558,890.51
230,378.57 1,738,262.31
Federal and State Grant Fund: Interfund Receivable - General Capital
A-17
40,000.00
40,000.00
1,778,262.31
1,598,890.51
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.
2017
2016
Liabilities, Reserves and Fund Balance
Current Fund: Appropriation Reserves Unencumbered
A-3;A-11 A-3;A-11
134,493.60 36,633.10
50,070.95 40,741.13
Encumbered
Due to State of New Jersey: Senior Citizen and Veteran Deductions
5,893.20
5,893.20
A-9
Interfunds Payable: Other Trust Sewer Operating Water Operating
A-10 A-10 A-10 A-12 A-12 A-12 A-13 A-14 A-15 A-16
25,593.94
64,556.54
33.42
3,472.76
Due to State of New Jersey: Marriage Surcharge
50.00
75.00
4,918.80 4,644.00 75,653.94 1,220.39 98,062.83 219,692.70 610,362.68 230,378.57 897,521.06 1,738,262.31
Tax Overpayments Accounts Payable
4,083.36
18,381.71
Prepaid Taxes
County Taxes Payable
37.94
75,464.96 159,327.70 418,632.49 316,943.17 823,314.85 1,558,890.51
District School Taxes Payable Regional School Taxes Payable
Reserve for Receivables
Contra
Fund Balance
A-1
Federal and State Grant Fund: Interfund Payable - Current Fund Appropriated Reserve for Grants
A-17 A-19 A-20 A-21
20,265.19 6,979.00 6,389.42 6,366.39 40,000.00
34,536.00 1,250.00 4,214.00
Unappropriated Reserve for Grants
Encumbrances Payable
40,000.00
1,778,262.31
1,598,890.51
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,
2016
2017
Ref.
Revenues and Other Income: Fund Balance Utilized
155,801.00 325,001.52 114,159.99 3,813,031.57
155,800.00 385,745.86 88,323.66 3,979,715.05
A-2 A-2 A-2 A-2 A-2
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
21,321.15
109,169.56
A-10
2,500.00
245.18
174.83
A-10
71,107.60
51,229.98
A-11
25.00
4,519,641.56
4,791,480.09
178,869.00 654,472.00
186,836.00 668,324.00
A-3 A-3
Other Expenses
Deferred Charges and Statutory Expenditures - Municipal - Within Caps
68,550.31
64,946.00
A-3
Operations - Excluded From CAPS: Other Expenses
89,500.00 156,000.00
162,909.00 171,000.00 70,126.08 414,417.80 1,931,752.00 891,163.00 4,561,473.88
A-3 A-3
Capital Improvements - Excluded from Caps Municipal Debt Service - Excluded from Caps A-3
97,441.50 415,032.21 1,901,163.00 770,431.00 4,331,459.02
Interfund Advances
A-14 A-15 A-16
County Taxes including Added Taxes
Local District School Tax Regional High School Tax
Total Expenditures
188,182.54
230,006.21
Excess (Deficit) Revenue Over Expenditures
790,933.31 979,115.85
823,314.85 1,053,321.06
A
Fund Balance, January 1,
Decreased by: Fund Balance Utilized as Budget Revenue
155,801.00
155,800.00
823,314.85
897,521.06
A
Fund Balance, December 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, 2017
Special N.J.S.A. 40A:4-87
Excess or (Deficit)
Realized
Ref.
Budget
155,800.00
155,800.00
A-1
Fund Balance Anticipated
Miscellaneous Revenues: Licenses: Alcoholic Beverages
187.73
5,800.00
5,987.73
A-8
Fines and Costs:
4,879.70 20,348.85 1,468.57 38,423.00 239,891.00
(120.30)
5,000.00 19,500.00
A-8 A-8 A-8 A-8 A-8 A-8
Municipal Court
848.85 868.57
Interest and Costs on Taxes
600.00
Interest on Investments and Deposits
38,423
Consolidated Municipal Property Tax Relief Act
239,891.00
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: Hazardous Discharge Site Remediation - A&L Oil Company
24,695.00
24,695.00 4,214.00
A-18 A-18
4,214.00
Clean Communities
Other Special Items: Cell Tower Lease
29,573.00 350,922.00 71,660.00 578,382.00
37,917.01 385,745.86 88,323.66 629,869.52
8,344.01 10,128.86 16,663.66 26,792.52
A-8 A-1
24,695.00
Total Miscellaneous Revenues
Receipts from Delinquent Taxes
A-1;A-2
24,695.00
Subtotal General Revenues
Amount to be Raised by Taxes for Support of Municipal Budget-Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes
862,057.25
21,289.25
840,768.00
A-2
48,081.77
1,419,150.00
24,695.00 1,491,926.77
Budget Totals
21,321.15
21,321.15
Non-Budget Revenue
A-1;A-2
69,402.92
24,695.00 1,513,247.92
1,419,150.00
A-3
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 Basis Current Fund For Year Ended December 31, 2017
Ref.
Analysis of Realized Revenues
3,979,715.05
A-1;A-6
Revenue from Collections
3,237,332.80
A-6
Allocated to School and County Taxes
Balance for Support of Municipal Budget Appropriations
742,382.25
Add : Appropriation - Reserve for Uncollected Taxes
119,675.00
A-3
Amount for Support of Municipal Budget Appropriations
862,057.25
A-2
Receipts from Delinquent Taxes: Delinquent Taxes Taxes Receivable
87,188.70 1,134.96 88,323.66
A-6 A-7 A-2
TTL Receivable
Analysis of Non-budget Revenues
Miscellaneous Revenues Not Anticipated: Fire Inspection Fees Board of Health/Registrar of Vital Statistics
4,088.45 2,146.00
450.00
Planning, Zoning, & Land Use
5,775.00
Cable T.V. Franchise Fee
245.00
Senior Citizen And Veterans Administrative Fee
8,616.70
Miscellaneous
21,321.15
A-4
A-2
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
9
A-3
Unexpended Balance
Reserved Cancelled
Page 1 of 6
Municipal Land Use Law (N.J.S.A. 40:55 D-1 Et Seq.) Planning Board Salaries and Wages 5,000.00 5,000.00 4,999.87 0.13 Other Expenses 12,030.00 14,530.00 13,489.94 1,040.06
Salaries and Wages 13,091.00 13,091.00 13,091.00 Other Expenses 2,000.00 2,000.00 1,504.80 495.20
Financial Administration Salaries and Wages 5,000.00 5,000.00 4,615.36 384.64 Other Expenses 21,000.00 21,000.00 10,940.80 10,059.20
Assessment of Taxes Salaries and Wages 11,897.00 11,897.00 11,897.00 Other Expenses 2,100.00 2,100.00 1,863.78 236.22
Engineering Services and Costs Other Expenses 5,500.00 5,500.00 3,661.00 1,839.00
Public Buildings and Grounds Other Expenses 26,000.00 26,000.00 23,850.11 2,149.89
Administrative and Executive Salaries and Wages 69,000.00 74,564.00 73,046.59 1,517.41 Other Expenses 34,000.00 34,000.00 27,608.93 6,391.07
Legal Services and Costs: Other Expenses 50,000.00 47,500.00 26,614.60 20,885.40
Paid or
Charged
After
Budget
Modification
Year Ended December 31, 2017 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.
Collection of Taxes
General Government:
A-3
Unexpended Balance
Reserved Cancelled
Page 2 of 6
First Aid Organization - Contribution 45,000.00 45,000.00 45,000.00 Emergency Management Services Salaries and Wages 1,549.00 1,549.00 1,549.00 Other Expenses 1,000.00 1,000.00 75.00 925.00 Streets and Roads
Fire Prevention Bureau Uniform Fire Safety Inspect. (P.L. 1983, Ch. 383) Salaries and Wages 5,668.00 5,668.00 5,668.00 Other Expenses 500.00 500.00 500.00 Police - Crossing Guards Salaries and Wages 14,700.00 14,700.00 13,315.12 1,384.88 Other Expenses 500.00 500.00 500.00
Road Repair and Maintenance Salaries and Wages 51,000.00 51,000.00 48,337.35 2,662.65 Other Expenses 60,000.00 49,000.00 32,347.98 16,652.02
Salaries and Wages 4,367.00 4,367.00 4,367.00
Fire Hydrant Service 13,860.00 13,860.00 13,860.00 Aid to Milford Volunteer Fire Company 44,500.00 44,500.00 44,500.00
Paid or
Charged
After
Budget
Modification
Year Ended December 31, 2017 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
A-3
Unexpended Balance
Reserved Cancelled
Page 3 of 6
Employee Group Health 104,797.00 115,797.00 97,198.14 18,598.86 Health Benefit Waiver 5,564.00 Electricity 5,000.00 5,000.00 4,010.12 989.88 Street Lighting 21,000.00 21,000.00 14,833.68 6,166.32
Recreation and Education Parks and Playgrounds Other Expenses 2,500.00 2,500.00 1,830.00 670.00 Insurance
General Liability 78,039.00 78,039.00 77,689.00 350.00
Garbage and Trash Removal Other Expenses 101,000.00 101,000.00 82,857.49 18,142.51 Dog Regulations Other Expenses 2,500.00 2,500.00 2,199.97 300.03
Total Operations Including Contingent- Within "Caps" 855,160.00 855,160.00 742,319.63 112,840.37 Detail: Salaries and Wages A-1 181,272.00 186,836.00 180,886.29 5,949.71 Other Expenses (Including Contingent) A-1 673,888.00 668,324.00 561,433.34 106,890.66
Workers Compensation 35,498.00 35,498.00 35,498.00
Paid or
Charged
After
Budget
Modification
Year Ended December 31, 2017 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
A-3
Unexpended Balance
General Appropriations Ref. Budget Modification Charged Reserved Cancelled Deferred Charges and Statutory Expenditures- Municipal - Excluded from "Caps" Statutory Expenditures Contribution to: Public Employees' Retirement System 43,046.00 43,046.00 43,046.00 Social Security System (O.A.S.I.) 18,500.00 18,500.00 16,399.13 2,100.87
Page 4 of 6
Total Other Operations - Excluded From Caps 110,000.00 110,000.00 56,077.84 53,922.16 Shared Service Agreements Municipal Court: Other Expenses 24,000.00 24,000.00 22,821.52 1,178.48 24,000.00 24,000.00 22,821.52 1,178.48
Other Operations Excluded from "CAPS" Council on Affordable Housing (COAH) 10,000.00 10,000.00 7,920.78 2,079.22 Maintenance of Free Public Library 50,000.00 50,000.00 48,157.06 1,842.94 Refund of Tax Appeals 50,000.00 50,000.00 50,000.00
Expenditures - Municipal within "CAPS" A-1 64,946.00 64,946.00 61,760.31 3,185.69 Total General Appropriations for Municipal Purposes- Within "CAPS" 920,106.00 920,106.00 804,079.94 116,026.06
Unemployment Compensation Insurance 3,400.00 3,400.00 2,315.18 1,084.82
After Paid or
Budget
Current Fund
Borough of Milford, N.J.
Year Ended December 31, 2017
Statement of Expenditures - Regulatory Basis
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Total Deferred Charged and Statutory
Total Capital Improvements Excluded from "CAPS" A-1 171,000.00 171,000.00 171,000.00 Municipal Debt Services Payment of Bond Anticipation Notes 61,000.00 61,000.00 61,000.00 Interest on Notes 9,155.00 9,155.00 9,126.08 28.92
Total Municipal Debt Service Excluded from "caps" A-1 70,155.00 70,155.00 70,126.08 28.92 Total General Appropriations - Excluded From "Caps" 404,064.00 404,064.00 348,934.44 55,100.64 28.92 The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
A-3
Unexpended Balance
General Appropriations Ref. Budget Modification Charged Reserved Cancelled Public and Private Programs Offset By Revenues A&L Site Remediation Other Expenses 24,695.00 24,695.00 24,695.00 Clean Communities Other Expenses 4,214.00 4,214.00 4,214.00
Page 5 of 6
Total Public and Private Programs Offset By Revenues 28,909.00 28,909.00 28,909.00 Total Operations - Excluded from "CAPS" A-1 162,909.00 162,909.00 107,808.36 55,100.64 Capital Improvements - Excluded From "Caps" Capital Improvement Fund 135,000.00 135,000.00 135,000.00 Purchase of Fire Apparatus 25,000.00 25,000.00 25,000.00 Purchase of Ambulance 11,000.00 11,000.00 11,000.00
After Paid or
Budget
Current Fund
Borough of Milford, N.J.
Year Ended December 31, 2017
Statement of Expenditures - Regulatory Basis
28.92
28.92
A-3
Unexpended Balance
Cancelled
Page 6 of 6
36,633.10
171,126.70
Reserved
134,493.60
171,126.70
171,126.70
28,909.00
Paid or
119,675.00
Charged
119,675.00
1,272,689.38
1,124,105.38
1,272,689.38
1,153,014.38
After
24,695.00
Budget
119,675.00
1,419,150.00
1,443,845.00
1,443,845.00
1,324,170.00
Modification
Budget
119,675.00
1,443,845.00
1,324,170.00
Current Fund
A
A
A-2
A-4
A-2
A-2
Ref.
Ref.
A-19
Borough of Milford, N.J.
Year Ended December 31, 2017
Statement of Expenditures - Regulatory Basis
General Appropriations
Analysis of Paid or Charged
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Analysis of Modified Budget
Analysis of Appropriation Reserve
Reserve for Uncollected Taxes Unencumbered Encumbered
Added by N.J.S.A. 40A:4-87 Cash Disbursed
Original Budget
Reserve for Federal and State Grants
Total General Appropriations
Subtotal General Appropriations
Reserve for Uncollected Taxes
B
Borough of Milford, N.J.
Comparative Balance Sheet - Regulatory Basis
Trust Funds
December 31,
Ref.
2017
2016
Assets
Animal Control Trust Fund: Cash
B-1
1,989.43
2,236.90
Other Trust Funds: Cash
B-1 B-3
153,118.52 25,593.94 178,712.46
163,160.68 64,556.54 227,717.22
Interfund - Current Fund
180,701.89
229,954.12
Liabilities, Reserves & Fund Balance
Animal Control Fund: Reserve for Animal Control Trust Fund Expenditures
B-2 B-3 B-4
1,795.20
1,965.20
Interfund - Current Fund
174.83
245.70
Due to State Department of Health
19.40
26.00
1,989.43
2,236.90
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
63,467.84 19,613.30 29,700.00
63,297.22 19,624.28 67,500.00
POAA
2.00
2.00
Public Defender Outside Liens
450.00
450.00
6,290.96 59,188.36 178,712.46
19,425.16 57,418.56 227,717.22
COAH
229,954.12
180,701.89
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.
2017
2016
Assets
551,618.12 643,021.05 1,194,639.17
584,725.86 704,021.05 1,288,746.91
C-2;C-3
Cash
C-5
Deferred Charges to Future Taxation - Unfunded
Liabilities, Reserves and Fund Balance
40,000.00
40,000.00 94,910.11
C-4 C-4 C-4 C-6
Interfund - Federal and State Grant Fund
82.23
Interfund - Current Fund
7,249.45
Interfund - Water Capital Fund Capital Improvement Fund Improvement Authorizations: Funded
135,000.00
41,081.23
171,314.52 32,511.19
137,648.02 36,900.19
C-7 C-7
Unfunded
Reserve for: Fire Apparatus and Equipment
C-8 C-8 C-8 C-9 C-1
190,661.60 12,301.00 40,000.00 549,000.00 16,519.18 1,194,639.17
165,661.60 77,000.00
Ambulance Debt Service
610,000.00 85,545.76 1,288,746.91
Bond Anticipation Notes Payable
Fund Balance
There were Bonds and Notes Authorized But Not Issued in the amount of $134,600.00 and $134,600.00 on December 31, 2017 and 2016 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,
2016
Ref.
2017
85,545.76
80,419.64
C
Balance - January 1,
Increased by: Improvement Authorizations Cancelled C-7
13,888.32 99,434.08
Decreased by: 2017 Improvement Authorizations
82,914.90
C-7
85,545.76
16,519.18
C
Balance - December 31,
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,
2017
2016
Ref
Assets
Operating Fund: Cash-Treasurer
D-5 D-7
102,746.23
116,943.56
Cash-Change Fund
50.00
50.00
102,796.23
116,993.56
Receivables with Full Reserves: Consumers Account Receivable
37,129.64
33,966.56
D-9
Interfund Receivable: Water Capital Fund
3,576.68 3,472.76 44,179.08
D-10 D-10
Current Fund
33,966.56
Total Operating Fund
146,975.31
150,960.12
Capital Fund: Cash
D-5;D-8
346,206.79
374,824.90
Due from Water Operating Fund Due from General Capital Fund
D-10 D-10 D-12 D-13 D-14
3,517.85
7,249.45
3,605,268.94 310,000.00
2,052,745.24 2,210,000.00
Fixed Capital*
Fixed Capital Authorized and Uncompleted*
Grants Receivable
61,961.00
4,268,725.18
4,703,048.99
Total Capital Fund
4,854,009.11
Total Assets
4,415,700.49
* 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
2017
2016
Ref.
Operating Fund:
Appropriation Reserve: Unencumbered
22,104.82
17,491.31 7,409.17 19,479.79 1,093.99
D-4;D-15
D-4
Encumbered
D-16 D-11
19,433.21 1,561.39
Accrued Interest on Loans and Notes
Water Overpayments Interfund Payable: Water Capital
D-10
3,517.85 46,617.27 33,966.56 70,376.29 150,960.12
45,474.26
44,179.08 57,321.97 146,975.31
Contra
Reserve for Receivables
D-1
Fund Balance
Total Operating Fund
Capital Fund:
D-10
3,576.68
Due to Water Operating
Improvement Authorizations: Funded
D-17 D-17 D-18 D-19 D-20 D-21 D-22
265,138.92
717,591.98 1,298,333.79 1,999,595.45 68,098.78 482,000.00 132,816.00
Unfunded
1,270,285.47 1,846,087.47 80,127.65 737,000.00 61,896.00
Loans Payable
Reserve for Amortization Reserve for Capital Outlay
Reserve for Deferred Amortization Bond Anticipation Notes Payable
4,612.99
4,612.99
D-2
Fund Balance
4,703,048.99
4,268,725.18
Total Capital Fund
4,415,700.49
4,854,009.11
Footnote D: There were Bonds and Notes Authorized But Not Issued in the Amount of $0 and $350,000.00 on December 31, 2017 and 2016 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,
2016
2017
Ref.
Revenue and Other Income Realized: Operating Surplus Anticipated
44,351.00 373,468.22 17,760.00
35,710.00 367,787.47 16,100.00
D-3 D-3 D-3 D-3
Rents
Fire Hydrant Services
625.70
1,035.59
Miscellaneous
Other Credits to Income: Unexpended Balance of Appropriation Reserves
4,728.54
9,782.06
D-15
440,933.46
430,415.12
Total Income
Expenditures: Operating
210,229.00 15,000.00 140,797.00
216,600.00 20,000.00 149,210.00 14,900.00 7,049.44 407,759.44
D-4 D-4 D-4
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures Interfunds Advanced
11,325.00
D-4
D-10
377,351.00
Total Expenditures
63,582.46
22,655.68
Excess in Revenue over Expenditures
51,144.83 114,727.29
70,376.29 93,031.97
D;D-1
Fund Balance - January 1,
Decreased by: Utilized as Anticipated Revenue
44,351.00
35,710.00
70,376.29
57,321.97
D
Fund Balance - December 31,
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,
2017
2016
Ref.
4,612.99
4,612.99
D
Balance - January 1,
4,612.99
4,612.99
D
Balance - December 31,
D-3
Statement of Revenues - Regulatory Basis
Water Utility Operating Fund
Year Ended December 31, 2017
Excess
(Deficit)
Realized
Anticipated
Ref.
35,710.00 367,787.47 16,100.00
35,710.00 350,000.00 15,000.00
D-1
Operating Surplus Anticipated
17,787.47 1,100.00 1,035.59 19,923.06
D-1;D-9 D-1;D-6 D-1;D-3
Rents
Fire Hydrant Services
1,035.59
Miscellaneous Budget Totals
420,633.06
400,710.00
D-4
Analysis of Realized Revenues Miscellaneous: Interest on Deposits: Water Operating Fund
317.94
D-5
36.25
D-10
Water Capital Fund
681.40
D-6
Miscellaneous
1,035.59
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
22
Unemployment Compensation Insurance 700.00 700.00 415.97 284.03 Total Deferred Charges and Statutory Expenditures D-1 14,900.00 14,900.00 13,927.68 972.32 400,710.00 400,710.00 375,809.52 24,900.48 D-3 Ref. Analysis of Paid or Charged Cash Disbursed D-5 325,569.52 Accrued Interest D-16 50,240.00 375,809.52 Unencumbered D 17,491.31 Encumbered D 7,409.17 24,900.48
Deferred Charges and Statutory Expenditures Statutory Expenditures: Contribution to: Public Employees' Retirement System 6,000.00 6,000.00 6,000.00 Social Security System (O.A.S.I.) 8,200.00 8,200.00 7,511.71 688.29
D-4
Salaries and Wages 107,100.00 107,100.00 102,051.88 5,048.12 Other Expenses 109,500.00 109,500.00 90,619.96 18,880.04
Total Operating D-1 216,600.00 216,600.00 192,671.84 23,928.16
Charged Reserved
Expended
Payment of Bond Anticipation Notes and Capital Notes 70,920.00 70,920.00 70,920.00 Interest on Notes 2,195.00 2,195.00 2,195.00 USDA-Rural Development Loan Principal 28,050.00 28,050.00 28,050.00 USDA-Rural Development Loan Interest 48,045.00 48,045.00 48,045.00 Total Debt Service D-1 149,210.00 149,210.00 149,210.00
Total Capital Improvements D-1 20,000.00 20,000.00 20,000.00 Debt Service:
Capital Improvements Capital Outlay 20,000.00 20,000.00 20,000.00
Paid or
After
Budget
Modification
Ref. Budget
Borough of Milford, N.J.
Water Utility Operating Fund
Year Ended December 31, 2017
Statement of Expenditures - Regulatory Basis
Analysis of Appropriation Reserve
The accompanying "Notes to Financial Statements" are an integral part of these financial statements.
Operating:
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