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MORRIS COUNTY PARK COMMISSION
COUNTY OF MORRIS
REPORT OF AUDIT
2019
NISIVOCCIA LLP CERTIFIED PUBLIC ACCOUNTANTS
MORRIS COUNTY PARK COMMISSION
COUNTY OF MORRIS
REPORT OF AUDIT
2019
MORRIS COUNTY PARK COMMISSION TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2019 Page PART I Independent Auditors' Report 1-3 Financial Statements Exhibit Current Fund 4 Comparative Balance Sheet – Regulatory Basis 5-6 Comparative Statement of Operations and Change in Fund Balance – Regulatory Basis 7 Statement of Revenue – Regulatory Basis 8-10 Statement of Expenditures – Regulatory Basis 11 General Capital Fund 12 Comparative Balance Sheet – Regulatory Basis 13 Statement of Fund Balance – Regulatory Basis 14 Trust and Other Restricted Trust Funds 15 Comparative Balance Sheet – Regulatory Basis 16 Statement of Fund Balance – Park Improvement Trust Fund – Regulatory Basis 17 General Fixed Assets Account Group (Unaudited) 18 Comparative Balance Sheet (Unaudited) – Regulatory Basis 19 Page Notes to Financial Statements 20-45 Schedule Supplementary Data 46 Officials in Office and Surety Bonds 47 Exhibit Current Fund 48 Schedule of Cash – Current Fund 49 Schedule of Cash – Federal and State Grant Fund 50 Schedule of Change Funds 51 Schedule of Golf Merchandise Inventory (Not Applicable) 52 Schedule of 2018 Appropriation Reserves 53 Schedule of Federal and State Grants Receivable 54 Schedule of Appropriated Reserves – Federal and State Grant Fund 55 Schedule of Unappropriated Reserves – Federal and State Grant Fund (Not Applicable) 56 General Capital Fund 57 Schedule of Cash 58 Analysis of Cash 59 Schedule of Deferred Charges to Future Taxation – Unfunded 60 Schedule of Improvement Authorizations 61 Schedule of Capital Improvement Fund 62 Schedule of Serial Bonds Payable 63-64 Schedule of Green Acres Loans Payable 65 Schedule of Bonds and Notes Authorized but Not Issued 66
MORRIS COUNTY PARK COMMISSION TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Page PART I (Cont'd) Supplementary Data (Cont'd) Trust and Other Restricted Trust Funds 67 Schedule of Cash - Park Improvement Trust Fund 68-70 Schedule of Reserve for Park Improvements 71-72 Schedule of Reserve for Park Trust 73-74 Schedule of Reserve for Restricted Trust Funds 75 PART II 76 Schedule of Expenditures of Federal Awards 77 Schedule of Expenditures of State Awards 78 Notes to Schedules of Expenditures of Federal and State Awards 79 Independent Auditors' 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 80-81 Schedule of Findings and Responses 82 Summary Schedule of Prior Audit Findings 83 PART III 84 Comments and Recommendations 85-86 Summary of Recommendations 87
MORRIS COUNTY PARK COMMISSION
PART I
INDEPENDENT AUDITOR’S REPORT AND FINANCIAL
STATEMENTS AND SUPPLEMENTARY SCHEDULES
YEAR ENDED DECEMBER 31, 2019
Independent Auditors' Report
The Honorable Members of the Park Commission Morris County Park Commission Morristown, New Jersey
Report on the Financial Statements
We have audited the financial statements – regulatory basis of the various funds of the Morris County Park Commission, (the "Commission"), a component unit of the County of Morris, as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”) to demonstrate compliance with the Division's regulatory basis of accounting, and the budget laws of New Jersey; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, audit requirements prescribed by 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 audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission’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 Commission’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.
Page 1
The Honorable Members of the Park Commission Morris County Park Commission Page 2 May 29, 2020 Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 1, the financial statements are prepared by the Commission on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America. 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 the 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 and account group of the Commission as of December 31, 2019 and 2018, or the changes in financial position where applicable, thereof for the years then ended. Basis for Qualified Opinion The Commission’s general fixed assets account group is stated at historical cost or estimated historical cost in the accompanying financial statements. We were unable to obtain sufficient evidence to support the cost of the fixed assets of the general fixed assets account group. As more fully described 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. Therefore, based upon the underlying accounting records, we have not audited the general fixed assets account group. Qualified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the various funds and account group of the Morris County Park Commission as of as of December 31, 2019 and 2018, and the results of operations and changes in fund balance, where applicable, of such funds, thereof for the years then ended on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division’s regulatory basis of accounting and the budget laws of New Jersey, as described in Note 1.
Other Matters Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements of the various funds that collectively comprise the Commission’s financial statements. The supplementary data schedules listed in the table of contents and the schedules of expenditures of federal and state awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and New Jersey’s OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis and are not a required part of the financial statements.
Page 2
The Honorable Members of the Park Commission Morris County Park Commission Page 3 May 29, 2020 The supplementary data schedules and the schedules of expenditures of federal and state awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the various fund financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the various fund financial statements or to the various fund financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary data schedules and the schedules of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 29, 2020 on our consideration of the Morris County Park Commission’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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Morris County Park Commission’s internal control over financial reporting and compliance.
Mount Arlington, New Jersey NISIVOCCIA May 29, 2020 John J. Mooney Certified Public Accountant Registered Municipal Accountant No. 560
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MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 CURRENT FUND
Page 4
A1 of 2
MORRIS COUNTY PARK COMMISSIONCURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,Ref. 2019 2018
ASSETS
Regular Fund:Cash and Cash Equivalents A-4 13,295,516.39$ 12,867,628.25$ Change Funds A-5 10,050.00 10,050.00
13,305,566.39 12,877,678.25
Receivables and Other Assets WithFull Reserves:
Due from:Federal and State Grant Fund A 48,675.83 County of Morris 5,938.02 5,529.73
5,938.02 54,205.56
Total Regular Fund 13,311,504.41 12,931,883.81
Federal and State Grant Fund:Cash and Cash Equivalents A-4a 95,519.96 5,090.93 Grants Receivable A-8 1,441,161.04 1,071,328.00
Total Federal and State Grant Fund 1,536,681.00 1,076,418.93
TOTAL ASSETS 14,848,185.41$ 14,008,302.74$
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A2 of 2
MORRIS COUNTY PARK COMMISSIONCURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
December 31,Ref. 2019 2018
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:Appropriation Reserves:
Unencumbered A-3,7 2,467,412.83$ 2,819,062.22$ Encumbered A-3,7 130,991.73 230,597.28
2,598,404.56 3,049,659.50 Due to Billy Casper Golf - Sales Tax 59,752.46 55,916.88 Due to State of NJ - Sales Tax 1,177.73 963.98 Due to Park Improvement Trust Fund C 6,000,000.00 4,000,000.00 Due to Park Trust Fund C 800,000.00 800,000.00 Due to Restricted Trust Fund C 200,000.00 200,000.00 Due to Golf Shops 52,073.74 50,140.67 Accounts Payable - Vendor 22,755.18 22,755.18 Credit Card Refundable Deposits 250.00 450.00 Reservations - Refundable Deposits 34,212.34 26,075.34 Bid Guarantee 4,095.00 1,000.00 Deferred Revenue - VSI Holding Account 13,831.98 19,506.70 Deferred Revenue - Golf Course Gift Cards 131,808.27 126,358.76 Deferred Revenue - All Sites Gift Cards 60.00 35.00 Deferred Revenue - Mennen Gift Cards 7,736.94 6,368.94 Reserve for Contracts and Settlements 105,000.00 Reserve for Performance Bond Deposit 85,883.14 85,883.14 Reserve for Central Park Turf Replacement 293,852.70 293,852.70
10,410,894.04 8,738,966.79
Reserve for Receivables and Other Assets 5,938.02 54,205.56 Fund Balance A-1 2,894,672.35 4,138,711.46
Total Regular Fund: 13,311,504.41 12,931,883.81
Federal and State Grant FundAppropriated Reserves A-9 1,028,827.10 983,313.00 Reserve for Encumbrances A-9 257,853.90 44,430.10 Due to Current Fund A 48,675.83 Due to Park Improvement Trust Fund C 250,000.00
Total Federal and State Grant Fund 1,536,681.00 1,076,418.93
TOTAL LIABILITIES, RESERVES AND FUND BALANCE 14,848,185.41$ 14,008,302.74$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
Page 6
A-1MORRIS COUNTY PARK COMMISSION
CURRENT FUNDCOMPARATIVE STATEMENT OF OPERATIONS AND CHANGE
IN FUND BALANCE - REGULATORY BASIS
Year Ended December 31,Ref. 2019 2018
Revenue and Other Income Realized
Fund Balance Utilized 3,489,125.00$ 3,468,673.00$ Golf Revenue 7,314,613.84 6,604,677.27 Other Revenue 6,639,114.72 5,868,300.53 County Appropriation 13,975,000.00 13,675,000.00 Rents 504,476.07 508,012.07 Interest Earned on Investments 104,232.16 30,838.53 Other Credits to Income:
Interfunds and Other Receivables Returned 54,205.56 3,012.99 Cancellation of Federal and State Grant Appropriations 4,462.03 23,738.00 Appropriation Reserves Lapsed 2,099,013.88 2,376,122.60
34,184,243.26 32,558,374.99
Expenditures
Budget Appropriations 31,931,895.00 31,046,238.00 Interfunds and Other Accounts Receivable Advanced 5,938.02 54,205.56 Cancellation of Federal and State Grants Receivable 1,306.35 1,136.00 Refund of Prior Year Revenue 18.00 495.00 Total Expenditures 31,939,157.37 31,102,074.56
Excess in Revenue 2,245,085.89 1,456,300.43
Fund Balance
Balance January 1 4,138,711.46 6,151,084.03 6,383,797.35 7,607,384.46
Decreased by: Utilized as Anticipated Revenue 3,489,125.00 3,468,673.00
Balance December 31 A 2,894,672.35$ 4,138,711.46$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
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A-21 of 3
MORRIS COUNTY PARK COMMISSIONCURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASISYEAR ENDED DECEMBER 31, 2019
BudgetAfter Excess or
Modification Realized Deficit *
Fund Balance Anticipated 3,489,125.00$ 3,489,125.00$
Flanders Valley Golf Course 2,546,853.00 2,290,161.57 256,691.43$ *Sunset Valley Golf Course 1,881,754.00 1,779,608.85 102,145.15 *Pinch Brook Golf Course 1,658,622.00 1,593,278.87 65,343.13 *Berkshire Valley Golf Course 1,647,053.00 1,651,564.55 4,511.55
Total Golf Course 7,734,282.00 7,314,613.84 419,668.16 *
William G. Mennen Sports Arena 4,020,700.00 4,008,602.64 12,097.36 *Lake Recreation 122,000.00 149,270.15 27,270.15 Lee's Park Marina 264,850.00 243,010.00 21,840.00 *Recreation 130,000.00 183,655.18 53,655.18 Central Park 450,000.00 567,770.37 117,770.37 Historic Sites 90,000.00 90,702.49 702.49 Visitor Services 250,000.00 343,370.36 93,370.36 Historic Speedwell 25,000.00 25,953.00 953.00 Horticulture Education 80,000.00 110,886.93 30,886.93 Miscellaneous Revenue 125,000.00 183,336.10 58,336.10 Natural Resource Education 120,000.00 124,044.50 4,044.50 Natural Resource Management 15,000.00 17,575.00 2,575.00 Body Armor 6,248.00 6,248.00 Distracted Driving 5,500.00 5,500.00 FEMA - Hazard Mitigation Grant 144,900.00 144,900.00 Friends of Frelinghuysen Arboretum 4,500.00 4,500.00 Historic GOS Grant 75,917.00 75,917.00 Morris County Historic Preservation 325,267.00 325,267.00 NJ Makers Day Mini Grant 700.00 700.00 National Endowment for Humanities 10,000.00 10,000.00 Drive Sober or Get Pulled Over 5,500.00 5,500.00 Watershed: Roots and Rivers 12,406.00 12,406.00
Total Other Revenue 6,283,488.00 6,639,114.72 355,626.72
County Appropriation 13,975,000.00 13,975,000.00 Rents 450,000.00 504,476.07 54,476.07 Interest Earned on Investments 104,232.16 104,232.16
14,425,000.00 14,583,708.23 158,708.23
31,931,895.00$ 32,026,561.79$ 94,666.79$
Page 8
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Page 9
A-23 of 3
MORRIS COUNTY PARK COMMISSIONCURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASISYEAR ENDED DECEMBER 31, 2019
(CONTINUED)
Analysis of Other Revenue:Cash Received 6,046,711.72$ Grants 590,938.00 Gift Cards Redeemed 1,465.00
6,639,114.72$
Analysis of William G. Mennen Sports Arena Revenue
General Sessions 189,893.00$ Skate Rentals 68,094.44 Figure Skating 1,535,527.95 Ice Time Rental 1,953,910.12 Non Ice Time Rental 57,501.46 Coupons & Locker Room 15,833.25 High School and College Hockey Spectators 83,289.00 Hockey School 11,180.00 Concessions 70,505.17 Party Package 20,128.25 Miscellaneous 1,275.00 Gift Cards Redeemed 1,465.00
4,008,602.64$
Analysis of Golf Course RevenueCash Received 7,226,138.56$ Gift Cards Redeemed 88,475.28
7,314,613.84$
Analysis of Rental IncomeCash Collections 504,476.07$
Analysis of Interest on InvestmentsCurrent Fund 77,242.67$ Federal and State Grant Fund 1,004.89 General Capital Fund 25,984.60
104,232.16$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
Page 10
A-3MORRIS COUNTY PARK COMMISSION
CURRENT FUNDSTATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2019
Appropriations Expended ByBudget After Paid or
Budget Modification Charged Reserved
Salaries and Wages: 12,587,293.00$ 12,587,293.00$ 11,387,435.53$ 1,199,857.47$
Other Expenses:Administration 8,960,396.00 8,960,396.00 8,652,773.55 307,622.45 Development 16,611.00 16,611.00 7,928.39 8,682.61 Information Technology Services 205,000.00 205,000.00 197,059.68 7,940.32 Visitor Services 214,689.00 214,689.00 131,291.12 83,397.88 Berkshire Valley Golf Course/Shops 1,230,900.00 1,230,900.00 1,212,459.20 18,440.80 Flanders Valley Golf Course/Shops 1,874,132.00 1,874,132.00 1,831,657.87 42,474.13 Pinch Brook Golf Course/Shops 966,067.00 966,067.00 951,076.56 14,990.44 Sunset Valley Golf Course/Shops 1,019,897.00 1,019,897.00 1,004,675.62 15,221.38 Lee's County Park Marina 81,444.00 81,444.00 58,084.91 23,359.09 William G. Mennen Sports Arena 2,009,963.00 2,009,963.00 1,760,502.80 249,460.20 Buildings and Construction 477,400.00 477,400.00 328,155.42 149,244.58 Engineering 34,339.00 34,339.00 26,863.25 7,475.75 Horticulture 255,532.00 255,532.00 189,545.29 65,986.71 Park Maintenance 724,845.00 724,845.00 596,297.18 128,547.82 Horticulture Education 86,905.00 86,905.00 70,015.95 16,889.05 Environmental Education 71,329.00 71,329.00 60,128.37 11,200.63 Historic Sites 178,010.00 178,010.00 148,437.86 29,572.14 Natural Resource Education 32,350.00 32,350.00 28,003.87 4,346.13 Park Police 313,855.00 313,855.00 231,151.75 82,703.25 Body Armor 6,248.00 6,248.00 Distracted Driving 5,500.00 5,500.00 FEMA - Hazard Mitigation Grant 144,900.00 144,900.00 Friends of Frelinghuysen Arboretum 4,500.00 4,500.00 Historic GOS Grant 75,917.00 75,917.00 Morris County Historic Preservation 325,267.00 325,267.00 NJ Makers Day Mini Grant 700.00 700.00 National Endowment for Humanities 10,000.00 10,000.00 Drive Sober or Get Pulled Over 5,500.00 5,500.00 Watershed: Roots and Rivers 12,406.00 12,406.00
18,753,664.00 19,344,602.00 18,077,046.64 1,267,555.36
31,340,957.00$ 31,931,895.00$ 29,464,482.17$ 2,467,412.83$
Ref. ACash Disbursed 29,541,051.73$
Due to Federal and State Grant Fund 590,938.00 A Encumbrances 130,991.73
30,262,981.46
Less: Refunds 798,499.29 29,464,482.17$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
Page 11
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 GENERAL CAPITAL FUND
Page 12
B
MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
Ref. 2019 2018ASSETS
Cash and Cash Equivalents B-2 2,538,290.08$ 2,346,025.08$
Deferred Charges to Future Taxation:
Funded 8,243,600.85 8,399,078.11
TOTAL ASSETS 10,781,890.93$ 10,745,103.19$
LIABILITIES, RESERVES AND FUND BALANCE
Serial Bonds Payable B-7 8,188,000.00$ 8,322,000.00$
Green Acres Loans Payable B-8 55,600.85 77,078.11
Improvement Authorizations:
Funded B-5 2,320,628.46 2,128,363.46
Fund Balance B-1 217,661.62 217,661.62
TOTAL LIABILITIES, RESERVES AND FUND BALANCE 10,781,890.93$ 10,745,103.19$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
December 31,
Page 13
B-1MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUNDSTATEMENT OF FUND BALANCE - REGULATORY BASIS
Ref.
Balance December 31, 2018 B 217,661.62$
Balance December 31, 2019 B 217,661.62$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
Page 14
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 TRUST AND OTHER RESTRICTED FUNDS
Page 15
CMORRIS COUNTY PARK COMMISSION
TRUST AND OTHER RESTRICTED FUNDSCOMPARATIVE BALANCE SHEET - REGULATORY BASIS
ASSETS Ref. 2019 2018
Park Improvement Trust Fund:Cash and Cash Equivalents C-2 800,529.83$ 3,250,863.54$ Due Current Fund A 6,000,000.00 4,000,000.00 Due Federal and State Grant Fund A 250,000.00
7,050,529.83 7,250,863.54
Park Trust Fund:Cash and Cash Equivalents C-2 590,138.15 479,392.90 Due Current Fund A 800,000.00 800,000.00
1,390,138.15 1,279,392.90
Restricted Trust Funds:Cash and Cash Equivalents C-2 157,539.57 109,823.67 Due Current Fund A 200,000.00 200,000.00
357,539.57 309,823.67
TOTAL ASSETS 8,798,207.55$ 8,840,080.11$
LIABILITIES, RESERVES AND FUND BALANCE
Park Improvement Trust Fund:Reserve for Park Improvements C-3 5,853,276.14$ 6,089,558.68$ Reserve for Encumbrances C-3 1,081,365.86 760,700.71 Fund Balance C-1 115,887.83 400,604.15
7,050,529.83 7,250,863.54
Park Trust Fund:Reserve for Park Trust Funds C-4 1,370,315.16 1,257,020.81 Reserve for Encumbrances C-4 19,822.99 22,372.09
1,390,138.15 1,279,392.90 Restricted Trust Funds:
Reserve for Restricted Trust Funds C-5 357,539.57 309,823.67
357,539.57 309,823.67
TOTAL LIABILITIES, RESERVES AND FUND BALANCE 8,798,207.55$ 8,840,080.11$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
December 31,
Page 16
C-1MORRIS COUNTY PARK COMMISSION
PARK IMPROVEMENT TRUST FUNDSTATEMENT OF FUND BALANCE - REGULATORY BASIS
Ref.
Balance December 31, 2018 C 400,604.15$
Increased by:Interest Earned on Investments 115,283.68
515,887.83 Decreased by:
Improvement Trust Authorizations 400,000.00
Balance December 31, 2019 C 115,887.83$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
Page 17
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 GENERAL FIXED ASSETS ACCOUNT GROUP
(UNAUDITED)
Page 18
D
2019 2018
Assets:Land 47,334,971.95$ 47,334,971.95$ Land Improvements 24,492,047.22 24,492,047.22 Buildings 40,576,428.70 40,576,428.70 Machinery and Equipment 21,197,114.89 19,800,003.36
Total Assets 133,600,562.76$ 132,203,451.23$
Reserves:Reserve for General Fixed Assets 133,600,562.76$ 132,203,451.23$
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTSARE AN INTEGRAL PART OF THIS STATEMENT
December 31,
MORRIS COUNTY PARK COMMISSIONGENERAL FIXED ASSETS ACCOUNT GROUP
COMPARATIVE BALANCE SHEET - REGULATORY BASIS(Unaudited)
Page 19
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 Note 1: Summary of Significant Accounting Policies A. Reporting Entity
Governmental Accounting Standards Board ("GASB") Codification Section 2100, "Defining the Financial Reporting Entity" establishes standards to determine whether a governmental component unit should be included in the financial reporting entity. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (1) it is able to impose its will on that organization or (2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A legally separate, tax-exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents. (2) The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. (3). The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. As the financial reporting entity was established in accordance with New Jersey statutes, the requirements of GASB Codification Section 2100 were not followed and, accordingly, the reporting entity could be different from accounting principles generally accepted in the United States of America. The Commission is a component unit of the County of Morris under the provisions of GASB Codification Section 2100.
B. Description of Funds The accounting policies of the Commission conform to the accounting practices applicable to
municipalities which have been prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"). Such practices 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. Under this method of accounting, the Commission accounts for its financial transactions through the following separate funds.
Current Fund - Resources and expenditures for governmental operations of a general nature,
including federal and state grant funds. Trust Funds/Other Restricted Trust Funds - Receipt, custodianship and disbursement of funds
in accordance with the purpose for which each reserve was created, some of which are for the acquisition, development, or improvement of Park lands and educational programs pursuant to N.J.S.A. 40:37-11.3.
General Capital Fund - Receipt and disbursement of funds for the acquisition of general
capital facilities, other than those acquired in the Current Fund.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 1: Summary of Significant Accounting Policies (Cont’d) B. Description of Funds (Cont.) General Fixed Assets Account Group (unaudited) – These accounts were established at cost
or estimated historical cost of land, land improvements, buildings and machinery and equipment of the Commission as discussed under the caption “Basis of Accounting.”
C. Basis of Accounting Basis of accounting refers to when revenue and expenditures or expenses are recognized in
the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.
The more significant accounting policies in New Jersey follow. Revenue is recorded when received in cash except for certain amounts which may be due from
the State of New Jersey and for the prepayment of future years' revenue. Grant revenue is realized in the Current Fund when it is budgeted, in the Trust Funds when it is received and in the Capital Fund when improvements are authorized.
Expenditures are charged to operations based on budgeted amounts. Exceptions to this
general rule include: 1. Accumulated unpaid vacation, sick pay and other employee amounts are not accrued. 2. Prepaid expenses, such as insurance premiums applicable to subsequent periods, are
charged to current budget appropriations in total. 3. Principal and interest on long-term debt are recognized when due. Expenditures, if any, in excess of appropriations, appropriation reserves or ordinances become
deferred charges which must be raised by future taxes. Outstanding encumbrances at December 31 are reported as a cash liability in the financial statements and constitute part of the statutory appropriation reserve balance. Appropriation reserves covering unexpended appropriation balances are automatically created at December 31 of each year and recorded as liabilities, except for amounts which may be cancelled 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.
Deferred Charges to Future Taxation – The General Capital Fund balance sheet can include
both funded and unfunded deferred charges. Funded means that bonds have been issued and are being paid off on a serial basis. Unfunded means the debt has been authorized but not permanently financed. A commission can eliminate an unfunded deferred charge by raising it in the budget or collecting a grant. The unfunded deferred charge may also be funded by selling bonds, by loans or by capital leases.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 1: Summary of Significant Accounting Policies (Cont’d)
C. Basis of Accounting (Cont’d)
Had the Commission's financial statements been prepared under accounting principles generally accepted in the United States of America, encumbrances would not be considered as expenditures; appropriation reserves would not be recorded; revenue susceptible to accrual would have been reflected without offsetting reserves and Federal and State grants and assistance would be recognized when earned, not when awarded and inventories would not be reflected as expenditures at the time of purchase, the Commission’s net OPEB liability and net pension liability and related deferred inflows and outflows, where applicable, would be recorded.
The cash basis of accounting is followed in the General Capital Fund.
Other significant accounting policies include:
Interfunds - 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.
Management Estimates – The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents – Amounts include petty cash, change funds, amounts on deposit, and short-term investments with original maturities of three months or less.
Investments – Investments are stated at cost.
Grants Receivable – Grants receivable represent total grant awards less amounts collected to date. Because the amount of grants funds to be collected are dependent on the total costs eligible for reimbursement, the actual amount collected may be less than the total amount awarded.
Allowance for Uncollectible Accounts – No allowance for uncollectible accounts has been recorded as all amounts are considered collectible.
Compensated Absences – Expenditures relating to unused vested accumulated vacation and sick pay are not recorded until paid.
General Fixed Assets (Unaudited) – general fixed assets are recorded at cost or estimated historical cost. Infrastructure assets are not included in general fixed assets, as per state directive. Major renewals and betterments are charged to the asset accounts; maintenance and minor repairs and replacements, which do not improve or extend the lives of the respective assets, are expensed currently. Donated fixed assets are valued at their fair market value on the date donated. The total value recorded for general fixed assets is offset by a “Reserve for General Fixed Assets”. When properties are retired or otherwise disposed of, the asset and the reserve are adjusted accordingly. Assets recorded in the General Fixed Assets Account Group may also be recorded in the Current Fund and General Capital Fund. The values recorded in the General Fixed Assets Account Group and the Current Fund and the General Capital Fund may not always agree due to differences in valuation methods, timing of recognition of assets, and the recognition of infrastructure. Fixed assets are reviewed for impairment.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 2: Long-Term Debt
Summary of Park Commission Debt
The Local Bond Law governs the issuance of bonds to finance general Commission capital expenditures. All bonds are retired in serial installments within the statutory period of usefulness. All bonds issued by the County on behalf of the Commission are general obligation bonds. The County of Morris’s full faith and credit and taxing power have been pledged to the payment of the general obligation principal and interest where such principal and interest is not funded by other sources.
December 31,2019 2018 2017
Serial Bonds Payable 8,188,000.00$ 8,322,000.00$ 8,465,000.00$ Green Acres Loans Payable 55,600.85 77,078.11 98,132.18
Net Bonds, Notes and Loans Issuedand Authorized but not Issued 8,243,600.85$ 8,399,078.11$ 8,563,132.18$
Summary of Commission Debt Outstanding - Current Year
Balance Balance12/31/2018 Additions Retirements 12/31/2019
Serial Bonds:Park Capital Fund 8,322,000.00$ 1,787,000.00$ 1,921,000.00$ 8,188,000.00$
Loans Payable:Park Capital Fund:
Green Trust Loans 77,078.11 21,477.26 55,600.85
Total 8,399,078.11$ 1,787,000.00$ 1,942,477.26$ 8,243,600.85$
Summary of Commission Debt Outstanding - Prior Year
Balance Balance12/31/2017 Additions Retirements 12/31/2018
Serial Bonds:Park Capital Fund 8,465,000.00$ 1,715,000.00$ 1,858,000.00$ 8,322,000.00$
Loans Payable:Park Capital Fund:
Green Trust Loans 98,132.18 21,054.07 77,078.11
Total 8,563,132.18$ 1,715,000.00$ 1,879,054.07$ 8,399,078.11$
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 2: Long-Term Debt (Cont’d) Summary of Park Commission Debt (Cont’d)
Purpose Interest Rate Maturity Date Amount
Park Bonds 2012 2.000% 12/15/2020-2022 845,000.00$
Park Bonds 2015A 4.000% 5/01/2020 330,000.004.000% 5/01/2021-2022 670,000.005.000% 5/01/2023 340,000.005.000% 5/01/2024 280,000.00
1,620,000.00
Park Bonds 2016 4.000% 10/15/2020-2023 680,000.00 4.000% 10/15/2024 171,000.00 2.000% 10/15/2025 180,000.00 2.000% 10/15/2026 180,000.00
1,211,000.00
Park Bonds 2017 3.000% 1/15/2020-2024 1,000,000.00 3.000% 1/15/2025 210,000.00
1,210,000.00
Park Bonds 2018 2.000% 1/15/2020 195,000.002.000% 1/15/2021 215,000.003.000% 1/15/2022-2024 645,000.004.000% 1/15/2025-2026 460,000.00
1,515,000.00
Park Bonds 2019 3.000% 2/1/2020-2022 767,000.002.000% 2/1/2023-2026 1,020,000.00
1,787,000.00
Total Serial Bonds 8,188,000.00$
Park Serial Bonds
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 2: Long-Term Debt (Cont’d)
Years Principal Interest Total
2020 1,442,000.00$ 263,821.50$ 1,705,821.50$ 2021 1,465,000.00 215,115.00 1,680,115.00 2022 1,440,000.00 171,090.00 1,611,090.00 2023 1,180,000.00 122,415.00 1,302,415.00 2024 1,121,000.00 77,465.00 1,198,465.00
2025-2026 1,540,000.00 52,750.00 1,592,750.00
8,188,000.00$ 902,656.50$ 9,090,656.50$
Schedule of Annual Debt Service for the Next Five Years andThereafter for Bonded Debt
Green Acres Loans Payable On January 16, 1985, the County became the first local unit in the State to be approved for the Green
Acres Trust Program. The program was developed by the New Jersey Department of Environmental Protection to provide low interest loans to local governments for the acquisition, preservation and improvement of land for recreation.
Through December 31, 2019, the County has borrowed funds under three separate projects, two of
which were retired in 2013. The loan balance for the remaining project as of the end of the year is as follows:
Green Acres Loans Payable
Patriots Path/Schooley's Mountain 55,600.85$
Payments of principal and interest on the loan are required to be made once the funds earmarked for a specific project have been completely drawn down. Payments are to commence nine months after the final drawdown date and are to continue on a semi-annual basis over a period of 10 to 20 years. Interest, on the loan, is at the rate of 2% annually on the outstanding balance. The County has appropriated $22,915.00 in its 2020 budget to fund principal and interest payments for 2020 for the above project.
Net Pension Liability
The State of New Jersey Public Employees’ Retirement System’s (PERS) net pension liability was calculated to be $23,330,608 at December 31, 2018. The State of New Jersey Police and Firemen’s Retirement System’s (PFRS) net pension liability was calculated to be $7,881,610 at December 31, 2018. See Note 4 for further information on the PERS and PFRS.
Net OPEB Liability The Commission’s Net OPEB was calculated to be $114,576,012. See Note 15 for further information on the net OPEB liability.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 3: Fund Balance Appropriated
Fund balance of $2,894,672.35 at December 31, 2019 has been appropriated as revenue in the 2020 Current Fund budget.
Note 4: Pension Plans
Commission employees participate in one of the two contributory, defined benefit public employee retirement systems: The State of New Jersey Public Employee’s Retirement System (PERS) or the State of New Jersey Police and Firemen’s Retirement System (PFRS).
A. Public Employees’ Retirement System (PERS)
Plan Description The State of New Jersey, Public Employees’ Retirement System (PERS) is a cost-sharing multiple-employer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and Benefits (the Division). For additional information about the PERS, please refer to the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/pensions/financial-reports.shtml. Benefits Provided The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of PERS. The following represents the membership tiers for PERS: Tier
1 Members who were enrolled prior to July 1, 20072 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 20083 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 20104 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28. 20115 Members who were eligible to enroll on or after June 28, 2011
Definition
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to Tiers 1 and 2 members upon reaching age 60 and to Tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final average salary for each year of service credit is available to Tier 4 members upon reaching age 62 and to Tier 5 members upon reaching age 65. Early retirement benefits are available to Tiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 with 25 or more years of service credit before age 62 and Tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d) A. Public Employees’ Retirement System (PERS) (Cont’d)
Contributions
The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members and contributing members. The local employers’ contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability is being paid by the employer in level annual payments over a period of 15 years, which began with the payments due in the fiscal year ended June 30, 2012 and are adjusted by the rate of return on the actuarial value of assets. Commission contributions to PERS amounted to $1,075,627.25 for 2019. The employee contribution rate was 7.50% effective July 1, 2018. Pension Liabilities and Pension Expense At June 30, 2018, the Commission’s liability was $23,330,608 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. The Commission’s proportion of the net pension liability was based on a projection of the Commission’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the Borough's proportion was 0.1026%, which was a decrease of 0.0044% from its proportion measured as of June 30, 2017. The Borough has rolled forward the net pension liability as of June 30, 2018 with no adjustments. The State of New Jersey Public Employees’ Retirement System (PERS)’ valuation cycle is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of valuation. The Division of Local Government Services, Department of Community Affairs, State of New Jersey is permitting municipalities to include the June 30, 2018 pension information in the Notes to the Financial Statements as the June 30, 2019 pension information has not been released as of the date of this audit. For the year ended December 31, 2018, the Commission recognized actual pension expense in the amount of $1,075,627.25.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d) A. Public Employees’ Retirement System (PERS) (Cont’d)
Actuarial Assumptions The total pension liability for the June 30, 2018 measurement date was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the following actuarial assumptions: Inflation Rate 2.25% Salary Increases: Through 2026 1.65 – 4.15% based on age Thereafter 2.65 – 5.15% based on age Investment Rate of Return 7.00% Pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for male and female active participants. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2013 using a generational approach based on the Conduent modified 2014 projection scale. Post-retirement mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (set back 1 year for males and females) for service retirements and beneficiaries of former members. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from 2012 to 2013 using Projection Scale AA and using a generational approach based on the Conduent 2014 projection scale thereafter. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward one year for females).
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements. Long Term Expected Rate of Return In accordance with State statute, the long-term expected rate of return on pension plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PERS’ target asset allocation as of June 30, 2018 are summarized in the following table:
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d) A. Public Employees’ Retirement System (PERS) (Cont’d)
Long Term Expected Rate of Return (Cont’d)
Long-TermTarget Expected Real
Asset Class Allocation Rate of Return
Risk Management Strategies 5.00% 5.51%Cash Equivalents 5.50% 1.00%U.S. Treasuries 3.00% 1.87%Investment Grade Credit 10.00% 3.78%High Yield 2.50% 6.82%Global Diversified Credit 5.00% 7.10%Credit Oriented Hedge Funds 1.00% 6.60%Debt Related Private Equity 2.00% 10.63%Debt Related Real Estate 1.00% 6.61%Private Real Asset 2.50% 11.83%Equity Related Real Estate 6.25% 9.23%U.S. Equity 30.00% 8.19%Non-U.S. Developed Market Equity 11.50% 9.00%Emerging Markets Equity 6.50% 11.64%Buyouts/Venture Capital 8.25% 13.08%
Discount Rate The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00% and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based upon the contribution rate in the most recent fiscal year. The local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through June 30, 2046. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through June 30, 2046, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d) A. Public Employees’ Retirement System (PERS) (Cont’d)
Sensitivity of the Borough's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Borough's proportionate share of the collective net pension liability as of June 30, 2018 calculated using the discount rate as disclosed below, as well as what the Borough's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:
30-Jun-18At 1% At Current At 1%
Decrease Discount Rate Increase(4.66%) (5.66%) (6.66%)
Commission's proportionate share of the Net Pension Liability 29,335,552$ 23,330,608$ 18,292,845$ Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued PERS financial statements. B. Police and Firemen’s Retirement System (PFRS)
Plan Description The State of New Jersey, State of New Jersey Police and Firemen’s Retirement System (PFRS), is a cost-sharing multiple-employer defined benefit pension plan administered by the State of New Jersey Division of Pensions and Benefits (the Division). For additional information about the PFRS, please refer to the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at www.nj.gov/treasury/pensions/financial-reports.shtml. Benefits Provided The vesting and benefit provisions are set by N.J.S.A. 43:16A. The PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after 4 years of service.
The following represents the membership tiers for PFRS:
Tier
1 Members who were enrolled prior to May 22, 20102 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 20113 Members who were eligible to enroll on or after June 28, 2011
Definition
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d) Benefits Provided (Cont’d) Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in which case benefits would begin at age 55 equal to 2% of final compensation for each year of service. The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members and contributing members. The Local employers’ contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of the retirement system, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability is being paid by the employer in level annual amounts over a period of 15 years, which began with the payments due in the fiscal year ended June 30, 2012 and are adjusted by the rate of return on the actuarial value of the assets. Special Funding Situation Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State if certain circumstances occurred. The legislation, which legally obligates the State, is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a nonemployer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan (except for employer specified financed amounts), there is no net pension liability or deferred outflows or inflows to report in the financial statements of the local participating employers related to this legislation. However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities’ total proportionate share of the collective net pension liability that is associated with the local participating employer. The June 30, 2018 State special funding situation net pension liability amount is the accumulated difference between the annual actuarially determined State obligation under the special funding situation and the actual State contribution through the valuation date. The State special funding situation pension expense for the fiscal year ended June 30, 2018 is the actuarially determined contribution amount that the State owes for the fiscal year ending June 30, 2018. The pension expense is deemed to be a State administrative expense due to the special funding situation.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d) B. Police and Firemen’s Retirement System (PFRS) (Cont’d)
Special Funding Situation (Cont’d)
Commission contributions to PFRS amounted to $569,438 for the year ended December 31, 2019. During the fiscal year ended June 30, 2018, the State of New Jersey contributed $63,405 to the PFRS for normal pension benefits on behalf of the Commission, which is less than the contractually required contribution of $122,606. The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Pension Liabilities and Pension Expense
At June 30, 2018, the Commission’s liability for its proportionate share of the net pension liability was $7,881,610. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. The Commission’s proportion of the net pension liability was based on a projection of the Commission’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the Commission’s proportion was .0582%, which was an increase of .0003% from its proportion measured as of June 30, 2017. The Commission has rolled forward the net pension liability as of June 30, 2018 with no adjustments. The State of New Jersey Police and Firemen’s Retirement System (PFRS)’ valuation cycle is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of valuation. The Division of Local Government Services, Department of Community Affairs, State of New Jersey is permitting municipalities to include the June 30, 2018 pension information in the Notes to the Financial Statements as the June 30, 2019 pension information has not been released as of the date of this audit. Additionally, the State’s proportionate share of the net pension liability attributable to the Commission is $1,070,586 as of June 30, 2018. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. The State's proportionate share of the net pension liability associated with the Commission was based on a projection of the Commission’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the State's proportion was .0582%, which was an increase of .0003% from its proportion measured as of June 30, 2017 which is the same proportion as the Commission’s. The Commission has rolled forward the net pension liability as of June 30, 2018 with no adjustments. The State of New Jersey Police and Firemen’s Retirement System (PFRS)’ valuation cycle is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of valuation.
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MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d) Pension Liabilities and Pension Expense (Cont’d) Commission's Proportionate Share of the Net Pension Liability 7,881,610$
State's Proportionate Share of the Net Pension Liability Associated with the Commission 1,070,586
Total Net Pension Liability 8,952,196$
For the year ended December 31, 2019, the Commission recognized total pension expense of $569,438.
Actuarial Assumptions:
The total pension liability for the June 30, 2018 measurement date was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the following actuarial assumptions:
Inflation Rate 2.25% Salary Increases: Through 2026 2.10% - 8.98% based on age Thereafter 3.10% - 9.98% based on age
Investment Rate of Return 7.00%
Pre-retirement mortality rates were based on the RP-2000 Combined Healthy mortality tables projected on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014 projection scale thereafter. For pre-retirement accidental mortality, a custom table with representative rates was used and there is no mortality improvement assumed. Post-retirement mortality rates for male service retirements are based on the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection Scale AA from base year of 2012 to 2013 and the Conduent modified 2014 projection scale thereafter. Post-retirement mortality rates for female service retirements and beneficiaries were based on the RP-2000 Combined Healthy Mortality Tables projected on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014 projection scales thereafter. Disability retirement rates were based on a custom table with representative rates and no mortality improvement assumed. The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, 2013.
Page 33
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d) Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PFRS’ target asset allocation as of June 30, 2018 are summarized in the table on the following page.
Long-Term
Target Expected RealAsset Class Allocation Rate of Return
Risk Management Strategies 5.00% 5.51%Cash Equivalents 5.50% 1.00%U.S. Treasuries 3.00% 1.87%Investment Grade Credit 10.00% 3.78%High Yield 2.50% 6.82%Global Diversified Credit 5.00% 7.10%Credit Oriented Hedge Funds 1.00% 6.60%Debt Related Private Equity 2.00% 10.63%Debt Related Real Estate 1.00% 6.61%Private Real Asset 2.50% 11.83%Equity Related Real Estate 6.25% 9.23%U.S. Equity 30.00% 8.19%Non-U.S. Developed Market Equity 11.50% 9.00%Emerging Markets Equity 6.50% 11.64%Buyouts/Venture Capital 8.25% 13.08%
Page 34
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 4: Pension Plans (Cont’d)
B. Police and Firemen’s Retirement System (PFRS) (Cont’d) Discount Rate – PFRS The discount rate used to measure the total pension liability was 6.51% as of June 30, 2018. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00% and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers and the nonemployer contributing entity will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 50% of the actuarially determined contributions and the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through June 30, 2062. Therefore, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through June 30, 2062, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Total Net Pension Liability (including the State’s proportionate share of the net pension liability attributable to the Borough) to Changes in the Discount Rate
The following presents the total net pension liability (including the State’s proportionate share of the net pension liability attributable to the Commission) as of June 30, 2018 calculated using the discount rate as disclosed above, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:
June 30, 2018
At 1% At Current At 1%Decrease Discount Rate Increase(5.51%) (6.51%) (7.51%)
Commission's proportionate share of the NPL and the State's proportionate share of the Net Pension Liability associated with the Commission 11,981,404$ 8,952,196$ 6,453,652$ Pension Plan Fiduciary Net Position - PFRS
Detailed information about the PFRS's fiduciary net position is available in the separately issued PFRS financial statements.
Page 35
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 5: Accrued Sick and Vacation Benefits The Commission permits employees to accrue a limited amount of unused vacation and sick pay,
which may be taken as time off or paid upon retirement or separation at an agreed-upon rate. Employees will be reimbursed for accumulated sick time between 20% to 50% of the present day value of accumulated sick time up to a maximum of between $5,000 and $12,000 in accordance with the respective contractual agreements of the various Commission employees.
Employees are also permitted to accumulate into the next calendar year any unused earned annual
vacation time which is not taken or granted by reason of the pressure of work. Accumulation after one calendar year shall not be permitted.
It is estimated that the current cost of such unpaid compensation would approximate
$403,033.47. This amount is not reported either as an expenditure or a liability. It is expected that the cost of such unpaid compensation would be included in the Commission’s budget operating expenditures in the year in which it is used.
Note 6: Cash and Cash Equivalents and Investments Cash and cash equivalents include change funds, amounts in deposits, money market accounts, and
short-term investments with original maturities of three months or less. Investments are stated at cost. The Commission classifies certificates of deposit which have original
maturity dates of more than three months but less than twelve months from the date of purchase, as investments.
GASB requires disclosure of the level of custodial credit risk assumed by the Commission in its cash,
cash equivalents and investments, if those items are uninsured or unregistered. Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned.
Interest Rate Risk – In accordance with its cash management plan, the Commission ensures that any
deposit or investment matures within the time period that approximates the prospective need for the funds, deposited or invested, so that there is not a risk to the market value of such deposits or
investments. Credit Risk – The Commission limits its investments to those authorized in its cash management plan
which are those permitted under state statue as detailed on the following page. Custodial Credit Risk – The Commission’s policy with respect to custodial credit risk requires that the
Commission ensure that Commission funds are only deposited in financial institutions in which NJ municipalities are permitted to invest their funds.
Deposits: New Jersey statutes permit the deposit of public funds in public depositories located in New Jersey
which are insured by the Federal Deposit Insurance Corporation, or by any other agency of the United States that insures deposits or the State of New Jersey Cash Management Fund.
Page 36
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 6: Cash and Cash Equivalents and Investments (Cont’d) Deposits (Cont’d) New Jersey statutes require public depositories to maintain collateral for deposits of public funds that
exceed insurance limits as follows: The market value of the collateral must equal 5% of the average daily balance of collected
public funds on deposit, and
In addition to the above collateral requirement, if the public funds deposited exceed 75% of the capital funds of the depository, the depository must provide collateral having a market value at least equal to 100% of the amount exceeding 75%.
All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board
or a banking institution that is a member of the Federal Reserve System and has capital funds of not less than $25,000,000.
Investments: New Jersey statutes permit the Commission to purchase the following types of securities: (1) Bonds or other obligations of the United States of America or obligations guaranteed by
the United States of America; (2) Government money market mutual funds; (3) Any obligation that a federal agency or a federal instrumentality has issued in accordance
with an act of Congress, which security has a maturity date not greater than 397 days from the date of purchase, provided that such obligation bears a fixed rate of interest not dependent on any index or other external factor;
(4) Bonds or other obligations of the local unit or bonds or other obligations of school districts
of which the local unit is a part or within which the school district is located; (5) Bonds or other obligations, having a maturity date not more than 397 days from the date
of purchase, issued by New Jersey school districts, municipalities, counties, and entities subject to the “Local Authorities Fiscal Control Law” P.L. 1983, c. 313 (C.40A:5A-1 et seq.) Other bonds or obligations having a maturity date not more than 397 days from the date of purchase may be approved by the Division of Local Government Services in the Department of Community Affairs for investment by local units;
(6) Local government investment pools; (7) Deposits with the State of New Jersey Cash Management Fund established pursuant to
section 1 of P.L. 1977, c.281 (C.52:18A-90.4); or
Page 37
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 6: Cash and Cash Equivalents and Investments (Cont’d) Investments: (Cont’d) (8) Agreements for the repurchase of fully collateralized securities if:
(a) the underlying securities are permitted investments pursuant to paragraphs (1) and
(3) of this subsection a. or are bonds or other obligations, having a maturity date not more than 397 days from the date of purchase, issued by New Jersey school districts, municipalities, counties and entities subject to the “Local Authorities Fiscal Control Law”, P.L. 1983 c.313 (C.40A:5A-1 et seq.);
(b) the custody of collateral is transferred to a third party
(c) the maturity of the agreement is not more than 30 days; (d) the underlying securities are purchased through a public depository as defined in
section 1 of P.L. 1970, c.236 (C.17:9-41); and (e) a master repurchase agreement providing for the custody and security of collateral is
executed.
As of December 31, 2019, cash and cash equivalents of the Morris County Park Commission consisted of the following:
Cash on CheckingFund Hand Accounts Totals
Current Fund 10,050.00$ 13,295,516.39$ 13,305,566.39$ Federal and State Grant Fund 95,519.96 95,519.96 Trust Funds 1,548,207.55 1,548,207.55 General Capital Fund 2,538,290.08 2,538,290.08
10,050.00$ 17,477,533.98$ 17,487,583.98$
During the period ended December 31, 2019, the Commission did not hold any investments. The carrying amount of the Morris County Park Commission's cash and cash equivalents at December 31, 2019, was $17,487,584.98 and the bank balance was $18,468,691.78.
Note 7: Risk Management
The Commission manages its risks through a combination of insurance pool membership and self-insurance.
The Commission is a member of the Morris County Insurance Fund. The Fund provides its members with Liability, Property, and Automobile Insurance. The Fund is a risk-sharing public entity risk pool that is both an insured and self-administered group of governmental entities established for the purpose of providing low-cost insurance coverage for their respective members in order to keep local property taxes at a minimum.
Page 38
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 7: Risk Management (Cont’d)
As a member of the Fund, the Commission could be subject to supplemental assessments in the event of deficiencies. If the assets of the Fund were to be exhausted, members would become responsible for their respective shares of the Fund’s liabilities.
The Fund can declare and distribute dividends to members upon approval of the Insurance Commissioners. These distributions are divided amongst the members in the same ratio as their individual assessment relates to the total assessment of the membership body.
The December 31, 2019 audit report for the Fund is not filed as of the date of this report. Summarized, selected financial information for the years ended December 31, 2018 and 2017 for the Fund is as follows on the following page:
2018 2017
Total Assets 11,357,228$ 10,981,513$
Net Position 7,136,110$ 7,087,996$
Total Revenue 3,464,242$ 3,309,385$
Total Expenses 3,416,128$ 3,106,211$
Changes in Net Position 48,114$ 203,174$
Members Dividends -0-$ -0-$
Financial statements for the Fund are available at office of the Morris County Treasurer:
County of Morris Administration & Records Building 4th Floor, CN 900 Morristown, NJ 07963
Note 8: Health Benefits Insurance
The County currently maintains medical and prescription health care insurance with Cigna through a minimum premium arrangement. The County advances funds to Cigna to pay medical and prescription claims for County employees. As of December 31, 2019, the County has $9,002,741 in contracts payable and a 2019 appropriation reserve amount of $13,649,570 to pay any run-off reserves.
Page 39
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 9: Interfund Receivables and Payables
The following interfund balances remained on the balance sheet at December 31, 2019.
Interfund InterfundFund Receivable Payable
Current Fund 7,000,000.00$ Federal and State Grant Fund 250,000.00 Trust Fund 7,250,000.00$
7,250,000.00$ 7,250,000.00$
The interfund receivable in the Trust Fund is for cash advanced to the Current Fund and Federal and State Grant Fund at year end.
Note 10: Commitments and Contingencies
Various suits and claims arising in the ordinary course of the Commission’s operations are pending against the Commission. The ultimate effect of such litigation cannot be ascertained at this time since they are currently in various stages of discovery. In the opinion of management, the ultimate outcome of these lawsuits will not have a material adverse effect on the Commission's financial position and operations as of December 31, 2019.
Amounts received or receivable from grantors, principally the federal and state governments are subject to regulatory requirements and adjustments by the agencies. Any disallowed claims, including amounts previously recognized by the Commission as revenue would constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantors cannot be determined at this time, although Commission officials expect such amounts, if any, to be immaterial.
Note 11: Accounts Payable and Accrued Expenses:
Payables as of December 31, 2019 were:
CurrentFund
Vendors 22,755.18$
Note 12: Deferred Compensation
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, which is administered by Great-West, permits participants to defer a portion of their salary until future years. Amounts deferred under the plan are not available to employees until termination, retirement, death or unforeseeable emergency.
Page 40
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 13: Open Space Trust Fund
On December 22, 1992, the Morris County Open Space and Farmland Preservation Trust Fund (the “Trust Fund”) was created. Collection of funds for the Trust Fund commenced on July 1, 1993 with a tax equal to one-half cent per $100 of the total county equalized real property valuation. The County Freeholders review the tax rate annually and may set the tax anywhere from $.00 to $.05. The levies for 2019 and 2018 were respectively $.01 and $.01.
15% of the Trust Fund is allocated to the Morris County Park Commission.
Note 14: Economic Dependency
The Commission receives a substantial amount of its support from the county, federal and state governments. A significant reduction in the level of support, if this were to occur, may have an effect on the Commission’s programs and activities.
Note 15: Post Retirement Benefits Other Than Pensions (OPEB)
General Information about the Commission’s OPEB Plan
Plan Description and Benefits Provided
The Commission provides post-retirement benefits, as follows, to Commission employees who meet the following criteria:
1. Retire after 25 or more years of service with a New Jersey State Retirement System and with
at least 15 years of service with the Commission;
2. Retire after attainment of age 62 with at least 15 or more years of service with the Commission and/or County of Morris, for employees hired on or before November 1, 2012 (or later for certain collective bargaining agreements); or
3. Retire under a disability retirement from the New Jersey State Retirement System.
Benefits are provided to the retiree and, if the retiree was hired prior to a certain date, the spouse as well depending on the employee’s union affiliation or whether the employee is not affiliated with a union. If the spouse is covered, benefits continue to the surviving spouse after the death of the retiree. Certain employees hired after certain dates are not eligible for postretirement healthcare benefits. This depends on the union the employee is affiliated with or whether the employee is not affiliated with a union. Medical benefits are provided thru fully-insured, minimum premium plans with CIGNA. There are two plans offered to retirees: a PPO plan and an HMO plan. Prescription benefits are provided through a fully-insured, minimum premium plan with CIGNA. Effective January 1, 2018, prescription drug coverage changed to self-funded. There is a 3-tier co-pay of $1/$20/$35 for retail and $2/$40/$70 for mail-order. Medicare benefits coordinate with Medicare primary and the Commission plan secondary for retirees eligible for Medicare. Medicare eligible retirees and dependents are required to enroll in Medicare Part B. The Commission reimburses Medicare eligible retirees and spouses for the full cost of the Medicare Part B premium.
Page 41
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 15: Post Retirement Benefits Other Than Pensions (OPEB) (Cont’d)
General Information about the Commission’s OPEB Plan (Cont’d)
Plan Description and Benefits Provided (Cont’d) Contributions
The Commission’s portion of postretirement benefits is funded on a pay-as-you-go basis from the Current Fund operating budget. During 2019, the Commission had approximately 127 employees who met eligibility requirements and recognized expenses of approximately $2,474,779.01.
Any employee who retirees after satisfying the eligibility requirements who had less than 20 years of NJ State Retirement System service as of June 28, 2011, shall be required to contribute toward the cost of postretirement healthcare. The retiree contributions are based on a percentage of the postretirement healthcare cost. The contribution percentages vary based on coverage tier and pension amounts, based on the below table:
Retirees Share of Benefit Related Costs
Pension Range Single Member/Spouse
less than $20,000 4.50% 3.50%$20,000- $24,999.99 5.50% 3.50%$25,000- $29,999.99 7.50% 4.50%$30,000- $34,999.99 10.00% 6.00%$35,000- $39,999.99 11.00% 7.00%$40,000- $44,999.99 12.00% 8.00%$45,000- $49,999.99 14.00% 10.00%$50,000- $54,999.99 20.00% 15.00%$55,000- $59,999.99 23.00% 17.00%$60,000- $64,999.99 27.00% 21.00%$65,000- $69,999.99 29.00% 23.00%$70,000- $74,999.99 32.00% 26.00%$75,000- $79,999.99 33.00% 27.00%$80,000- $94,999.99 34.00% 28.00%$95,000- $99,999.99 35.00% 30.00%
$100,000 35.00% 35.00% Employees Covered by Benefit Terms
As of January 1, 2018, there was a total of 262 active employees and retirees, reflecting the sum of 138 active employees and 124 retirees and surviving spouses.
Page 42
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 15: Post Retirement Benefits Other Than Pensions (OPEB) (Cont’d)
Total OPEB Liability
The Commission’s OPEB liability of $114,576,012 was measured as of December 31, 2019 and was determined by an actuarial valuation as of January 1, 2018.
Actuarial Assumptions and Other Inputs
The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate 4.25% at December 31, 2018 2.75% at December 31, 2019 Salary Increases 3.00% per year
Inflation Assumptions 2.50% per year
The selected discount rate was based on the Bond Buyer 20 Bond GO Index as of the measurement date, which represents the average of certain general obligation municipal bonds maturing in 20 years and having an average rating equivalent of Moody’s Aa2 and Standard & Poor’s AA.
Health Care Pre 65 Post 65 Prescription MedicareTrend Rates Year Medical * Medical * Drug Part B
Year 1 Trend 2019 5.65% 4.50% 9.25% 5.00%Ultimate Trend 2023 & Later 5% 4.50% 5.00% 5.00%Grading per Year 0.10% None 0.50% None
* - The ultimate trend for Pre 65 Medical is reached in 2023 and the ultimate trend for Prescription drug is reached in 2022. Mortality rates were based on the following: Pre-Retirement: U.S. Public Pension Plan Mortality (2010) Headcount-Weighted Healthy Employee Male/Female Mortality Projected with Scale MP-2019.
Post-Retirement: U.S. Public Pension Plan Mortality (2010) Headcount-Weighted Healthy Annuitant Male/Female Mortality Projected with Scale MP-2019.
Disabled: U.S. Public Pension Plan Mortality (2010) Headcount-Weighted Disabled Employee Male/Female Mortality Projected with Scale MP-2019.
Page 43
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 15: Post Retirement Benefits Other Than Pensions (OPEB) (Cont’d)
Changes in the Total OPEB Liability
Total OPEB Liability
Balance at January 1, 2019 93,351,604$
Changes for Year: Service Cost 1,424,771 Interest Cost 3,973,839 Benefit Payments (2,548,555) Actuarial Assumption Changes 18,366,875 Actuarial Demographic Gain 7,478
Net Changes 21,224,408
Balance at December 31, 2019 114,576,012$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Commission as well as what the Commission’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage lower (1.75 percent) or 1 percentage higher (3.75 percent) than the current discount rate:
December 31, 20191% 1%
Decrease Discount Rate Increase(1.75%) (2.75%) (3.75%)
Total OPEB Liability 138,178,311$ 114,576,012$ 96,396,961$ Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the Commission as well as what the Commission’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage lower or 1 percentage higher than the valuation healthcare cost trend rates:
December 31, 2019
Valuation1% Healthcare 1%
Decrease Trend Rates Increase
Total OPEB Liability 93,676,007$ 114,576,012$ 142,341,367$
Page 44
MORRIS COUNTY PARK COMMISSION NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2019 (Continued)
Note 15: Post Retirement Benefits Other Than Pensions (OPEB) (Cont’d)
OPEB Expense For the year ended December 31, 2019, the Commission’s OPEB expense was $5,700,964 as determined by the actuarial valuation. The Commission’s actual post retirement payments in 2019 for 127 retiree employees were $2,474,779.01.
Page 45
MORRIS COUNTY PARK COMMISSION
SUPPLEMENTARY DATA
Page 46
MORRIS COUNTY PARK COMMISSIONOFFICALS IN OFFICE AND SURETY BONDS
YEAR ENDED DECEMBER 31, 2019
The following officials were in office during the period under audit:
Amount of Name of Corporate orName Title Bond Personal Surety
Stuart Lasser President
Richard Seabury, III Vice-President
Anthony Abrantes Sr. Member
Julie C. Baron Member
Betty Cass-Schmidt Member
William Cogger Member
Edward G. McCarthy Member
Jonathan Kalafer Member
Matthew Tal Member
Joseph A. Kovalcik, Jr. Treasurer (To 11/6/2019) 1,000,000.00$ * Great American
Beti Bauer Acting Treasurer (From 11/7/2019) 1,000,000.00$ * Great American
David D. Helmer Executive Director 1,000,000.00$ * Great American
Richard Vitale Deputy Executive Director 1,000,000.00$ * Great American
John Suminski Park Counsel
* The Morris County Park Commission maintains a blanket bond for coverageof all employees in the amount of $1,000,000.
Page 47
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 CURRENT FUND
Page 48
A-4MORRIS COUNTY PARK COMMISSION
CURRENT FUNDSCHEDULE OF CASH
Ref.Balance December 31, 2018 A 12,867,628.25$
Increased by Receipts:Rents 504,476.07$ County Appropriation 13,975,000.00 Golf Course Revenue 7,226,138.56 Other Revenue 6,046,711.72 Interest Earned on Investments 77,242.67 Due From Park Capital Fund:
Interest Earned 25,984.60 Due Federal and State Grant Fund:
Interest Earned 1,070.07 Interfund Returned 71,611.33
Other Receivables:Due from Golf Courses 136,038.39
Due County of Morris 133,031.94 Due from Park Improvement Trust 2,000,000.00 Due to Billy Casper Golf - Sales tax 846,929.57 Due State of New Jersey - Sales Tax 4,535.37 Appropriation Refunds 798,499.29 Reservations - VSI Holding Account 17,636.75 Reservations - Refundable Deposits 31,044.00 Bid Guarantee 55,130.00 Gift Certificates Sold:
Golf Course 93,924.79 Mennen Arena 2,833.00 All Sites 25.00
32,047,863.12 44,915,491.37
Decreased by Disbursements:2019 Appropriation Expenditures 29,541,051.73 2018 Appropriation Reserve Expenditures 845,645.62 Due State of New Jersey - Sales Tax 4,321.62 Due to Billy Casper Golf - Sales tax 843,093.99 Due County of Morris 133,440.23 Refund of Prior Year Revenue 18.00 Reservations - Refundable Deposits 22,907.00 Bid Guarantee 52,035.00 Reservations - VSI Holding Account 23,311.47 Due From Federal and State Grant Fund:
Appropriated Reserves 19,845.00 Due from Golf Courses 134,105.32 Credit Card Refundable Deposits Returned 200.00
31,619,974.98
Balance December 31, 2019 A 13,295,516.39$
Page 49
A-4aMORRIS COUNTY PARK COMMISSIONFEDERAL AND STATE GRANT FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2018 A 5,090.93$
Increased by Receipts:Federal and State Grants Receivable 219,798.61$ Due Current Fund:
Interest Earned 1,004.89 Due Park Improvement Trust Fund:
Interfund Advanced 250,000.00 470,803.50 475,894.43
Decreased by Disbursements:Federal and State Grant Fund Expenditures 307,693.07 Due Current Fund:
Interfund Returned 71,611.33 Interest Earned 1,070.07
380,374.47
Balance December 31, 2019 A 95,519.96$
Page 50
A-5MORRIS COUNTY PARK COMMISSION
CURRENT FUNDSCHEDULE OF CHANGE FUNDS
Ref.Balance December 31, 2018 A 10,050.00$
Balance December 31, 2019 A 10,050.00$
Analysis of Balance December 31, 2019Berkshire Valley Golf Course 1,500.00$ Cooper Grist Mill 200.00 Flanders Valley Golf Course 3,000.00 Fosterfields Living Historical Farm 500.00 Great Swamp Outdoor Education Center 200.00 Historic Speedwell 300.00 Horticultural Education 200.00 Pinch Brook Gold Course 1,500.00 Pyramid Mountain 200.00 Sunrise Lake 250.00 Sunset Valley Golf Course 1,500.00 William G. Mennen Sports Arena 700.00
10,050.00$
Page 51
A-6MORRIS COUNTY PARK COMMISSION
CURRENT FUNDSCHEDULE OF GOLF MERCHANDISE INVENTORY
YEAR ENDED DECEMBER 31, 2019
(NOT APPLICABLE)
Page 52
A-7MORRIS COUNTY PARK COMMISSION
CURRENT FUNDSCHEDULE OF 2018 APPROPRIATION RESERVES
YEAR ENDED DECEMBER 31, 2019
Balance Balance After Paid or BalanceDec. 31, 2018 Modification Charged Lapsed
Salaries and Wages: 1,309,426.68$ 1,234,626.68$ 374,840.42$ 859,786.26$
Other Expenses:Administration 708,451.59 708,451.59 117,886.39 590,565.20 Development 11,837.56 11,737.56 607.45 11,130.11 Information Technology Services 22,546.93 22,446.93 10,200.00 12,246.93 Visitor Services 91,240.00 91,240.00 30,899.66 60,340.34 Berkshire Valley Golf Course/Shops 77,616.50 77,616.50 9,289.07 68,327.43 Flanders Valley Golf Course/Shops 108,367.64 108,367.64 9,022.37 99,345.27 Pinch Brook Golf Course/Shops 23,995.90 23,995.90 5,385.80 18,610.10 Sunset Valley Golf Course/Shops 21,634.10 21,634.10 6,561.35 15,072.75 Lee's County Park Marina 32,510.96 32,510.96 4,544.85 27,966.11 William G. Mennen Sports Arena 138,418.86 213,418.86 163,685.22 49,733.64 Buildings and Construction 133,924.74 133,924.74 37,777.82 96,146.92 Engineering 10,386.55 10,386.55 2,925.76 7,460.79 Horticulture 89,293.97 89,293.97 12,852.63 76,441.34 Park Maintenance 140,957.04 140,957.04 98,401.81 42,555.23 Education and Interpretive Services 10,645.50 10,645.50 5,768.71 4,876.79 Historic Sites 25,668.96 25,668.96 19,920.09 5,748.87 Natural Resource Education 23,329.40 23,329.40 7,499.21 15,830.19 Park Police 69,406.62 69,406.62 32,577.01 36,829.61
3,049,659.50$ 3,049,659.50$ 950,645.62$ 2,099,013.88$
Ref.
Unencumbered A 2,819,062.22$ Encumbered A 230,597.28
3,049,659.50$
Cash Disbursed 845,645.62$ Reserve for Contracts and Settlements 105,000.00
950,645.62$
Analysis of Balance at December 31, 2018
Page 53
A-8
2019
Bud
get
Bal
ance
Rev
enue
Cas
hB
alan
ceD
ec. 3
1, 2
018
Rea
lize
dR
ecei
ved
Can
cell
edD
ec. 3
1, 2
019
Bod
y A
rmor
Rep
lace
men
t Gra
nt:
20
183,
229.
96$
3,
229.
96$
2019
3,01
8.04
3,01
8.04
$
Dri
ve S
ober
or
Get
Pul
led
Ove
r:
2018
5,50
0.00
$
5,50
0.00
20
195,
500.
00
4,
345.
00
1,
155.
00$
Dis
trac
ted
Dri
ving
5,50
0.00
5,50
0.00
P
ark
All
ianc
e -
2012
3,17
7.00
3,17
7.00
New
Jer
sey
His
tori
cal C
omm
issi
on:
20
1935
,810
.00
35
,810
.00
2020
75,9
17.0
0
37,9
59.0
0
37,9
58.0
0
Rec
reat
ion
Tra
ils
Gra
nt:
20
1124
,700
.00
24
,700
.00
U
rban
and
Com
mun
ity
For
estr
y G
rant
3,70
0.00
3,70
0.00
Fri
ends
of
Fre
ling
huys
en A
rbor
etum
4,50
0.00
4,50
0.00
N
ew J
erse
y H
isto
rica
l Tru
st:
H
isto
ric
Tru
st P
rese
rvat
ion
- 20
1611
0,00
0.00
110,
000.
00
His
tori
c T
rust
Pre
serv
atio
n -
2019
325,
267.
00
32
5,26
7.00
NJD
OT
Tra
nspo
rtat
ion
Alt
erna
tive
Pro
gram
:
2017
669,
000.
00
66
9,00
0.00
2018
219,
441.
00
21
9,44
1.00
NJ
Mak
ers
Day
Min
i Gra
nt70
0.00
70
0.00
Nat
iona
l End
owm
ent f
or H
uman
itie
s10
,000
.00
10
,000
.00
W
ater
shed
: Roo
ts a
nd R
iver
s12
,406
.00
12
,254
.65
15
1.35
0.
00
F
EM
A -
Haz
ard
Mit
igat
ion
Gra
nt14
4,90
0.00
144,
900.
00
1,07
1,32
8.00
$ 59
0,93
8.00
$
219,
798.
61$
1,
306.
35$
1,
441,
161.
04$
AA
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NF
ED
ER
AL
AN
D S
TA
TE
GR
AN
T F
UN
DS
CH
ED
UL
E O
F S
TA
TE
AN
D F
ED
ER
AL
GR
AN
TS
RE
CE
IVA
BL
E
Page 54
A-9
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NF
ED
ER
AL
AN
D S
TA
TE
GR
AN
T F
UN
DS
CH
ED
UL
E O
F A
PP
RO
PR
IAT
ED
RE
SE
RV
ES
Pri
or Y
ear
Tra
nsfe
rred
Bal
ance
Enc
umbr
ance
sfr
omC
ash
Bal
ance
Dec
. 31,
201
8R
etur
ned
2019
Bud
get
Dis
burs
edC
ance
lled
Enc
umbe
red
Dec
. 31,
201
9
Bod
y A
rmor
Gra
nt:
2017
1,95
5.35
$
1,95
5.35
$
20
183,
229.
96$
3,22
9.96
20
193,
018.
04
3,01
8.04
$
Dru
nk D
rivi
ng E
nfor
cem
ent G
rant
:
2013
3,15
5.68
3,15
5.68
$
Dri
ve S
ober
or
Get
Pul
led
Ove
r:
2018
5,50
0.00
5,50
0.00
2019
5,50
0.00
4,
345.
00
1,15
5.00
Dis
trac
ted
Dri
ving
:
2019
5,50
0.00
5,
500.
00
Fri
ends
of
Fre
ling
huys
en A
rbor
etum
:
2018
4,
500.
00$
4,50
0.00
2019
4,
500.
00
4,50
0.00
Gre
en C
omm
issi
on -
Urb
an a
nd C
omm
unit
y F
ores
try:
2017
3,70
0.00
3,70
0.00
Dod
ge F
oste
r F
ield
s G
rant
:
2013
2,00
0.00
2,00
0.00
New
Jer
sey
His
tori
cal C
omm
issi
on:
20
1853
,860
.97
60
0.00
54,4
60.9
7
2019
75,9
17.0
0
13,0
02.9
4
292.
00$
62
,622
.06
N
ew J
erse
y H
isto
rica
l Tru
st:
20
1639
,330
.10
39
,330
.10
20
2032
5,26
7.00
61,4
80.0
0
263,
787.
00
NJD
OT
Tra
nspo
rtat
ion
Alt
erna
tive
Pro
gram
:20
1766
9,00
0.00
66
9,00
0.00
20
1821
9,44
1.00
58
,485
.60
16
0,95
5.40
Rec
reat
ion
Tra
ils
Gra
nt24
,700
.00
24
,700
.00
N
J M
aker
s D
ay M
ini G
rant
700.
00
70
0.00
Nat
iona
l End
owm
ent f
or H
uman
itie
s10
,000
.00
10
,000
.00
W
ater
shed
: Roo
ts a
nd R
iver
s12
,406
.00
12
,254
.65
15
1.35
0.
00
F
EM
A -
Haz
ard
Mit
igat
ion
Gra
nt14
4,90
0.00
119,
773.
50
25
,126
.50
983,
313.
00$
44,4
30.1
0$
590,
938.
00$
32
7,53
8.07
$
4,46
2.03
$
257,
853.
90$
1,
028,
827.
10$
Ref
.A
AA
A
Cas
h D
isbu
rsed
in C
urre
nt F
und
19,8
45.0
0$
Cas
h D
isbu
rsed
in F
eder
al a
nd S
tate
Gra
nt F
und
307,
693.
07
327,
538.
07$
Page 55
A-10MORRIS COUNTY PARK COMMISSIONFEDERAL AND STATE GRANT FUND
SCHEDULE OF UNAPPROPRIATED RESERVESFOR THE YEAR ENDING DECEMBER 31, 2019
NOT APPLICABLE
Page 56
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 GENERAL CAPITAL FUND
Page 57
B-2MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUNDSCHEDULE OF CASH
Ref.
Balance December 31, 2018 B 2,346,025.08$
Increased by Receipts:Capital Improvement Fund 91,000.00$ Serial Bond Proceeds 1,787,000.00 Due Current Fund:
Interest on Investments 25,984.60 1,903,984.60 4,250,009.68
Decreased by Disbursements:Improvement Authorization Expenditures 1,685,735.00 Due Current Fund:
Interest on Investments 25,984.60 1,711,719.60
Balance December 31, 2019 B 2,538,290.08$
Page 58
B-3
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NG
EN
ER
AL
CA
PIT
AL
FU
ND
AN
AL
YS
IS O
F C
AP
ITA
L C
AS
H
Dis
burs
emen
tsC
apit
alB
alan
ce o
rS
eria
lIm
prov
emen
t
Impr
ovem
ent
Tra
nsfe
rsB
alan
ceD
ec. 3
1, 2
018
Bon
dsF
und
M
isce
llan
eous
Aut
hori
zati
ons
Mis
cell
aneo
usT
oF
rom
Dec
. 31,
201
9
Fun
d B
alan
ce21
7,66
1.62
$
21
7,66
1.62
$
Cap
ital
Im
prov
emen
t Fun
d91
,000
.00
$
91,0
00.0
0$
D
ue C
urre
nt F
und
25,9
84.6
0$
25
,984
.60
$
O
rd.
Impr
ovem
ent A
utho
riza
tion
s:N
o.
Im
prov
emen
ts o
f M
orri
s C
ount
y P
ark
Com
mis
sion
Fac
ilit
ies
209
300.
00
300.
00
Var
ious
Cap
ital
Pro
ject
s U
nder
the
Juri
sdic
tion
of M
orri
s C
ount
y P
ark
Com
mis
sion
215
1,79
2.74
1,79
2.74
Var
ious
Pav
ing
Pro
ject
s fo
r th
e M
orri
s C
ount
yP
ark
Com
mis
sion
217
7,28
0.00
1,53
7.50
$
5,74
2.50
Pav
ing
Pro
ject
s at
Var
ious
Loc
atio
ns a
t the
Mor
ris
Cou
nty
Par
k C
omm
issi
on L
ocat
ions
219
116,
570.
22
111,
850.
22
4,
720.
00
V
ario
us P
avin
g P
roje
cts
at M
orri
s C
ount
y P
ark
Com
mis
sion
220
37,8
28.0
7
30
,077
.18
7,
750.
89
P
urch
ase
and
Upg
rade
s of
Var
ious
Veh
icle
and
Equ
ipm
ent
221
2,31
7.91
587.
87
1,73
0.04
Ren
ovat
ion
Cos
ts o
f P
avil
ion
at L
ee's
Par
kM
arin
a22
214
9,70
0.00
149,
700.
00
R
enov
atio
n of
the
Pav
ilio
n at
Lee
's C
ount
y P
ark
Mar
ina
223
323,
444.
03
323,
444.
03
R
esur
faci
ng a
nd I
mpr
ovem
ents
of
Par
k S
yste
ms
Roa
dway
s, P
arki
ng A
reas
, and
Pav
ed T
rail
s22
448
,155
.41
58.0
0
48
,097
.41
P
urch
ase
of V
ehic
les
and
Equ
ipm
ent f
or P
ark
Sys
tem
Ope
rati
ons
225
38,7
51.2
6
35
,526
.58
3,
224.
68
P
urch
ase
of V
ario
us V
ehic
les
and
Equ
ipm
ent
226
46,8
30.4
8
35
,818
.34
11
,012
.14
P
avin
g P
roje
cts
at V
ario
us L
ocat
ions
W
ithi
n th
e P
ark
Sys
tem
227
67,9
81.7
6
67
,981
.76
Fin
al P
hase
of
the
Ren
ovat
ion
of th
e P
avil
ion
at L
ee's
Par
k M
arin
a22
832
4,00
0.00
32
4,00
0.00
Pur
chas
e of
Var
ious
Veh
icle
s an
d E
quip
men
t22
956
6,42
6.69
45
0,40
7.25
116,
019.
44
P
avin
g P
roje
cts
at V
ario
us L
ocat
ions
at t
heO
ffic
e of
the
Cle
rk o
f th
e B
oard
230
396,
984.
89
143,
182.
40
25
3,80
2.49
Rep
lace
Veh
icle
s &
Equ
ipm
ent
231
1,19
1,00
0.00
$
718,
375.
21
60
,000
.00
$
532,
624.
79
R
enov
ate
Lee
's P
ark
Pav
ilio
n23
231
0,00
0.00
89
,332
.69
16
,000
.00
236,
667.
31
P
avin
g P
roje
cts
Var
ious
Par
ks23
328
6,00
0.00
1,
000.
00
15
,000
.00
300,
000.
00
2,34
6,02
5.08
$
1,78
7,00
0.00
$
91,0
00.0
0$
25
,984
.60
$
1,68
5,73
5.00
$ 25
,984
.60
$
91,0
00.0
0$
91
,000
.00
$
2,53
8,29
0.08
$
Rec
eipt
s
Page 59
B-4
SerialOrd. 2019 BondsNo. Improvement Description Authorizations Issued
231 Replace Vehicles & Equipment 1,191,000.00$ 1,191,000.00$
232 Renovate Lee's Park Pavilion 310,000.00 310,000.00
233 Paving Projects Various Parks 286,000.00 286,000.00
1,787,000.00$ 1,787,000.00$
MORRIS COUNTY PARK COMMISSIONGENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDEDFOR THE YEAR ENDED DECEMBER 31, 2019
Page 60
B-5
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NG
EN
ER
AL
CA
PIT
AL
FU
ND
SC
HE
DU
LE
OF
IM
PR
OV
EM
EN
T A
UT
HO
RIZ
AT
ION
S
Bal
ance
,C
apit
alD
efer
red
Cha
rges
Bal
ance
,O
rdin
ance
Dec
. 31,
201
8Im
prov
emen
tto
Fut
ure
Tax
atio
nD
ec. 3
1, 2
019
No.
Dat
eA
ppro
pria
tion
Fun
ded
Fun
d-
Unf
unde
dE
xpen
ded
Fun
ded
Impr
ovem
ent o
f M
orri
s C
ount
y P
ark
Com
mis
sion
Fac
ilit
ies
209
05/2
7/09
1,40
0,00
0.00
$ 30
0.00
$
300.
00$
Var
ious
Cap
ital
Pro
ject
s U
nder
the
Juri
sdic
tion
of M
orri
s C
ount
y P
ark
Com
mis
sion
215
06/1
3/12
1,30
0,00
0.00
1,79
2.74
1,79
2.74
Var
ious
Pav
ing
Pro
ject
s fo
r th
e M
orri
s C
ount
yP
ark
Com
mis
sion
217
04/2
4/13
406,
509.
00
7,28
0.00
1,53
7.50
$
5,74
2.50
Pav
ing
Pro
ject
s at
Var
ious
Loc
atio
ns a
t the
Mor
ris
Cou
nty
Par
k C
omm
issi
on L
ocat
ions
219
06/2
5/14
300,
000.
00
116,
570.
22
11
1,85
0.22
4,72
0.00
Var
ious
Pav
ing
Pro
ject
s at
Mor
ris
Cou
nty
Par
kC
omm
issi
on22
006
/24/
1530
0,00
0.00
37
,828
.07
30
,077
.18
7,
750.
89
P
urch
ase
and
Upg
rade
s of
Var
ious
Veh
icle
and
Equ
ipm
ent
221
06/2
4/15
750,
000.
00
2,31
7.91
587.
87
1,73
0.04
Ren
ovat
ion
Cos
ts o
f P
avil
ion
at L
ee's
Par
k M
arin
a22
206
/24/
1515
0,00
0.00
14
9,70
0.00
149,
700.
00
R
enov
atio
n of
the
Pav
ilio
n at
Lee
's C
ount
y P
ark
Mar
ina
223
09/1
4/16
325,
000.
00
323,
444.
03
32
3,44
4.03
Res
urfa
cing
and
Im
prov
emen
ts o
f P
ark
Sys
tem
sR
oadw
ays,
Par
king
Are
as, a
nd P
aved
Tra
ils
224
09/1
4/16
400,
000.
00
48,1
55.4
1
58.0
0
48,0
97.4
1
Pur
chas
e of
Veh
icle
s an
d E
quip
men
t for
Par
kS
yste
m O
pera
tion
s22
509
/14/
161,
000,
000.
00
38
,751
.26
35
,526
.58
3,
224.
68
P
urch
ase
of V
ario
us V
ehic
les
and
Equ
ipm
ent
226
02/2
2/17
1,01
5,00
0.00
46,8
30.4
8
35,8
18.3
4
11,0
12.1
4
Pav
ing
Pro
ject
s at
Var
ious
Loc
atio
ns22
702
/22/
1730
0,00
0.00
67
,981
.76
67
,981
.76
-
F
inal
Pha
se o
f R
enov
atio
n of
the
Pav
ilio
n at
Lee
'sP
ark
Mar
ina
228
02/2
2/17
325,
000.
00
324,
000.
00
32
4,00
0.00
Pur
chas
e of
Var
ious
Veh
icle
s an
d E
quip
men
t22
904
/25/
181,
401,
000.
00
56
6,42
6.69
450,
407.
25
11
6,01
9.44
Pav
ing
Pro
ject
s at
Var
ious
Loc
atio
ns a
t the
Off
ice
of th
e C
lerk
of
the
Boa
rd23
005
/07/
1840
1,00
0.00
39
6,98
4.89
143,
182.
40
25
3,80
2.49
Rep
lace
Veh
icle
s &
Equ
ipm
ent
231
05/0
6/19
1,25
1,00
0.00
60,0
00.0
0$
##
####
####
#71
8,37
5.21
532,
624.
79
R
enov
ate
Lee
's P
ark
Pav
ilio
n23
205
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1932
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00
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ario
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arks
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00
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0
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####
####
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####
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Ref
.B
B
2019
Aut
hori
zati
ons
Page 61
B-6MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUNDSCHEDULE OF CAPITAL IMPROVEMENT FUND
Increased by:Received from County in 2019 91,000.00$
Decreased by:Appropriated to Finance Improvement Authorizations 91,000.00$
FOR THE YEAR ENDED DECEMBER 31, 2019
Page 62
B-7
1 of
2
Mat
urit
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. 31,
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sued
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ured
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. 31,
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k B
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10
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211,
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00
10
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Page 63
B-7
2 of
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Mat
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ance
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. 31,
201
8Is
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ured
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. 31,
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9
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Ref
.B
B
GE
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RA
L C
AP
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UN
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CH
ED
UL
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F S
ER
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BO
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AY
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N
Page 64
B-8MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUNDSCHEDULE OF GREEN ACRES LOANS PAYABLE
Ref.
Balance December 31, 2018 B 77,078.11$
Decreased by:Loan Repayments in 2019 21,477.26
Balance December 31, 2019 B 55,600.85$
Patriots Path/Schooley's Mountain Department of Environmental Protection Loan:
Payment PrincipalNumber Date Interest Rate Amount
35 1/24/2020 2.00% 10,899.98$ 36 7/24/2020 2.00% 11,008.98 37 1/24/2021 2.00% 11,119.07 38 7/24/2021 2.00% 11,230.26 39 1/24/2022 2.00% 11,342.56
55,600.85$
SCHEDULE OF PRINCIPAL PAYMENTSOUTSTANDING DECEMBER 31, 2019
Page 65
B-9MORRIS COUNTY PARK COMMISSION
GENERAL CAPITAL FUNDSCHEDULES OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
FOR THE YEAR ENDED DECEMBER 31, 2019
Ord. 2019 BondsNo. Improvement Description Authorizations Issued
231 Replace Vehicles & Equipment 1,191,000.00$ 1,191,000.00$
232 Renovate Lee's Park Pavilion 310,000.00 310,000.00
233 Paving Projects Various Parks 286,000.00 286,000.00
1,787,000.00$ 1,787,000.00$
Page 66
MORRIS COUNTY PARK COMMISSION COUNTY OF MORRIS
2019 TRUST AND OTHER RESTRICTED FUNDS
Page 67
C-21 of 3
MORRIS COUNTY PARK COMMISSIONPARK IMPROVEMENT TRUST FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 2018 C 3,250,863.54$
Increased by:2019 Tax Assessment 2,375,000.00$ Refunds and Reimbursements 31,770.00 Interest Earned on Investments 115,283.68
2,522,053.68 5,772,917.22
Decreased by:Reserve for Park Improvement Trust Account 2,722,387.39 Due Current Fund: Interfunds Advanced 2,000,000.00 Due Federal and State Grant Fund: Interfunds Advanced 250,000.00
4,972,387.39
Balance December 31, 2019 C 800,529.83$
Page 68
C-22 of 3
MORRIS COUNTY PARK COMMISSIONPARK TRUST FUND
SCHEDULE OF CASH
Ref.Balance December 31, 2018 C 479,392.90$
Receipts:Cottage Gift Shop 881.47$ Donations: All Park Facilities 2,684.00 Equipment and Vehicle Replacement 73,535.58 Frelinghuysen Arboretum 12,174.83 Friends of the Frelinghuysen Arboretum 165.00 Friends of Fosterfield 5,000.00 Green Vest Conservation Easements 16,620.00 Hammond Wildflower Trail 436.04 Henderson Scholarship 311.46 Henry Tubbs 11,500.00 IMLA Sensory Tools Project 2,000.00 Loantaka Brook Reservation 40,000.00 Promotional Public Programs 6,013.50 Memorial Donations 8,528.37 Recreational Programming 2,500.00 Ruth Gilbert Memorial Fund 519.53 Scherer Garden Trust 250.00 Willowwood 275.00
183,394.78 662,787.68
Disbursements:Branching out 950.00 Cottage Gift Shop 6,137.09 Columbia Gas 100.00 Donations Memorial 1,746.85 Egers Memorial Garden 575.00 Environmental Education Trust 1,538.40 Equipment & Vehicle Replacement 11,479.19 Friends of Frelinghuysen Arboretum 7,223.10 Golf Now Contributions 786.04 Hammond Wildflower Trail 164.00 Henry Tubbs 10,162.26 Memorial Donations 4,915.36 Natural Resource-PSE&G 8,000.00 Promotional Public Programs 18,872.24
72,649.53
Balance December 31, 2019 C 590,138.15$
Page 69
C-23 of 3
MORRIS COUNTY PARK COMMISSIONRESTRICTED TRUST FUNDS
SCHEDULE OF CASH
Ref.
Balance December 31, 2018 C 109,823.67$
Receipts:Deposits 51,285.90
161,109.57
Disbursements:Maintenance and Improvements 3,570.00
Balance December 31, 2019 C 157,539.57$
Page 70
C-3
1 of
2
Acc
ount
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ance
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get
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Page 71
C-3
2 of
2
Acc
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Bal
ance
Ref
unds
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rior
Yea
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ear
Bal
ance
Num
ber
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crip
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Dec
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ling
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prov
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17
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10
Q
-750
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pgro
und
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ovem
ents
- M
DR
37,5
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1
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3
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ay C
ente
r Im
prov
emen
ts34
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10
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4,
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19
2,
344.
50
38
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-752
Nat
ural
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ourc
es I
mpr
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ents
355,
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24
185,
000.
00
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00
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1
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56
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0$
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8
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61
Q-7
53Im
prov
emen
ts to
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igm
eur
53,5
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0
850.
00
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0
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54M
ount
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e M
iner
s C
hurc
h29
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29
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Q
-755
His
tori
c S
peed
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l Im
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emen
t59
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38
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253,
298.
98
18,9
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0
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279.
29
Q-7
56S
afet
y an
d S
ecur
ity
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ovem
ents
25,6
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8
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0
12,1
96.0
0
61,9
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0
17,9
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0
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8
Q-7
57C
entr
al P
ark
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ovem
ents
18,3
76.7
6
80,0
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0
22,8
59.1
3
75,5
17.6
3
Q-7
58A
DA
Im
prov
emen
ts22
2,89
5.76
14
1.83
22
2,75
3.93
Q
-759
Par
k S
yste
m F
acil
ity
and
Gro
unds
Im
prov
emen
ts23
2,49
0.05
7,
700.
00
(8
5,00
0.00
)
82,6
28.4
5
57,1
61.6
0
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9,55
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$
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0.00
$
431,
770.
00$
76
0,70
0.71
$
2,72
2,38
7.39
$
-0-
$
1,08
1,36
5.86
$
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3,27
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$
Ref
.C
CC
C
400,
000.
00$
F
und
Bal
ance
31,7
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0
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und
and
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mbu
rsm
ents
431,
770.
00$
PA
RK
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PR
OV
EM
EN
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ND
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SE
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E F
OR
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PR
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EM
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TS
(Con
tinu
ed)
MO
RR
IS C
OU
NT
Y P
AR
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OM
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SIO
N
Page 72
C-4
1 of
2
Bal
ance
Cas
hE
ncum
bran
ces
Cas
hE
ncum
bran
ces
Bal
ance
Par
k T
rust
Fun
d:D
ec. 3
1, 2
018
Rec
eipt
sR
etur
ned
Dis
burs
edP
ayab
leD
ec. 3
1, 2
019
Acc
umul
ated
Abs
ence
Lia
bili
ty75
,000
.00
$
75
,000
.00
$
B
rail
le T
rail
Fun
d85
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85
5.20
B
ranc
hing
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5,47
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00$
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terf
ly G
arde
n F
und
829.
25
829.
25
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rk C
resc
ent G
arde
n2,
205.
08
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olum
bia
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nsm
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on4,
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00
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0.00
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900.
00
C
omm
unit
y F
ound
atio
n of
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Jer
sey
1,66
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tage
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t Sho
p6,
137.
09
88
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$
6,
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09
88
1.47
D
onat
ions
: All
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k F
acil
itie
s2,
684.
00
2,
684.
00
M
emor
ial D
onat
ions
15,1
77.7
5
8,52
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4,91
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34.3
7
Dor
othy
Mar
ie M
cCoy
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oria
l Don
atio
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00
1,
000.
00
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gers
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oria
l Gar
den
2,26
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575.
00
1,68
9.02
Env
iron
men
tal E
duca
tion
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st71
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1,
538.
40
69
,997
.88
E
quip
men
t and
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icle
Rep
lace
men
t18
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3.93
73
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8,
491.
56$
11
,479
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6,
500.
00
25
2,33
1.88
F
arm
Hou
se P
rese
rvat
ion
200.
00
200.
00
Fri
ends
of
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terf
ield
5,00
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ling
huys
en A
rbor
etum
215,
023.
78
12,1
74.8
3
227,
198.
61
Fri
ends
of
the
Fre
ling
huys
en A
rbor
etum
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52.7
6
165.
00
7,22
3.10
554.
07
6,64
0.59
Gir
alda
Far
ms
Ste
war
dshi
p37
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.00
37
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G
olf
Now
Con
trib
utio
ns3,
298.
60
78
6.04
2,
512.
56
G
reen
Ves
t Con
serv
atio
n E
asem
ent
16,6
20.0
0
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0
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mon
d W
ildf
low
er T
rail
13,0
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9
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04
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00
13,2
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3
Hen
ders
on S
chol
arsh
ip6,
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31
31
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977.
77
H
enry
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bs11
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11
,500
.00
1,
299.
00
10
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3.56
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isto
ric
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es A
ucti
on P
roce
eds
4,68
9.29
4,68
9.29
Hor
ticu
ltur
e E
duca
tion
al P
rogr
amm
ing
30,6
96.9
1
30,6
96.9
1
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NP
AR
K T
RU
ST
FU
ND
SC
HE
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OF
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SE
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E F
OR
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US
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Incr
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ased
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Page 73
C-4
2 of
2
Bal
ance
Cas
hE
ncum
bran
ces
Cas
hE
ncum
bran
ces
Bal
ance
Par
k T
rust
Fun
d:D
ec. 3
1, 2
018
Rec
eipt
sR
etur
ned
Dis
burs
edP
ayab
leD
ec. 3
1, 2
019
IML
S S
enso
ry T
ools
Pro
ject
2,00
0.00
$
2,00
0.00
$
Jona
than
Woo
ds23
,808
.53
$
23
,808
.53
L
and
Div
ersi
ons
31,5
95.0
0
31,5
95.0
0
Loa
ntak
a B
rook
Res
erva
tion
- P
osun
ka40
,000
.00
40
,000
.00
M
emor
ial D
onat
ions
35,0
63.1
5
1,74
6.85
$
33,3
16.3
0
Nat
ural
Res
ourc
e -P
SE
&G
25,7
09.1
3
25,7
09.1
3
Nat
ural
Res
ourc
e R
esto
rati
on29
,390
.22
8,
000.
00
21
,390
.22
P
rom
otio
nal P
ubli
c P
rogr
ams
46,6
67.6
0
6,01
3.50
3,04
8.00
$
18,8
72.2
4
3,04
8.00
$
33,8
08.8
6
Pyr
amid
Mou
ntai
n60
,270
.50
60
,270
.50
R
ecre
atio
nal P
rogr
amm
ing
31,5
66.6
8
2,50
0.00
9,53
3.53
8,16
4.53
35,4
35.6
8
Res
tora
tion
of
The
Wil
low
woo
d C
onse
rvat
ory
11,6
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0
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0
Rut
h G
ilbe
rt M
emor
ial F
und
10,7
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6
519.
53
11,2
66.6
9
Sch
erer
Gar
den
Tru
st29
,487
.41
25
0.00
29
,737
.41
S
torm
Rec
over
y43
,388
.42
43
,388
.42
T
rail
Rec
reat
ion
10,9
75.5
4
10,9
75.5
4
Uti
lity
Im
prov
emen
t Inc
enti
ve31
,277
.39
31
,277
.39
W
hole
Foo
ds P
rogr
am S
uppo
rt15
5.02
15
5.02
W
illo
ww
ood
16
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.23
27
5.00
16
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.23
1,25
7,02
0.81
$
183,
394.
78$
22,3
72.0
9$
72,6
49.5
3$
19,8
22.9
9$
1,37
0,31
5.16
$
Ref
.C
C
MO
RR
IS C
OU
NT
Y P
AR
K C
OM
MIS
SIO
NP
AR
K T
RU
ST
FU
ND
SC
HE
DU
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SE
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OR
PA
RK
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US
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Incr
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yD
ecre
ased
By
Page 74
C-5
Park Police CarolineRef. Total Trust Fund Foster Trust
Balance December 31, 2018 C 309,823.67$ 69,451.41$ 240,372.26$
Increased by:Miscellaneous Revenue 51,285.90 48,499.11 2,786.79
51,285.90 48,499.11 2,786.79 Decreased by:
Maintenance and Improvements 3,570.00 3,570.00 3,570.00 3,570.00
Balance December 31, 2019 C 357,539.57$ 114,380.52$ 243,159.05$
MORRIS COUNTY PARK COMMISSIONRESTRICTED TRUST FUND
SCHEDULE OF RESERVE FOR RESTRICTED TRUST FUNDS
Page 75
MORRIS COUNTY PARK COMMISSION
PART II
SINGLE AUDIT
YEAR ENDED DECEMBER 31, 2019
Page 76
1M
OR
RIS
CO
UN
TY
PA
RK
CO
MM
ISS
ION
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AW
AR
DS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
019
Gra
ntT
otal
Am
ount
sN
ame
of F
eder
alS
tate
Acc
ount
CF
DA
Aw
ard
Gra
nt P
erio
dC
urre
nt Y
ear
Cum
ulat
ive
Pro
vide
d to
A
genc
y or
Dep
artm
ent
Nam
e of
Pro
gram
Num
ber
Num
ber
Am
ount
Fro
mT
oR
ecei
pts
Exp
endi
ture
sE
xpen
ditu
res
Sub
reci
pien
ts
U.S
. Dep
artm
ent o
f H
omel
and
Sec
urit
y -
Fed
eral
Em
erge
ncy
Man
agem
ent A
genc
y -
Dis
aste
r G
rant
s-(P
asse
d th
roug
h th
e N
J D
epar
tmen
t of
Haz
ard
Mit
igat
ion
FE
MA
-DR
-L
aw a
nd P
ubli
c S
afet
y)P
rogr
am40
86-N
J-62
7-R
97.0
3914
4,90
0.00
$
3/27
/201
83/
27/2
021
119,
773.
50$
11
9,77
3.50
$
Tot
al U
.S. D
epar
tmen
t of
Hom
elan
d S
ecur
ity
119,
773.
50
11
9,77
3.50
U.S
. Dep
artm
ent o
f T
rans
port
atio
n -
Pat
riot
's P
ath
on
(Pas
sed
thro
ugh
the
NJ
Dep
artm
ent o
fG
reat
Gre
enw
ay20
18-D
T-D
LA
-505
20.2
0521
9,44
1.00
3/21
/201
84/
30/2
021
58,4
54.6
0
58
,454
.60
Hig
hway
Tra
ffic
Saf
ety)
Pro
ject
(Pas
sed
thro
ugh
the
NJ
Dep
artm
ent o
f10
0-06
6-11
60-
20.6
1610
,120
.00
1/1/
2018
12/3
1/20
195,
500.
00$
5,
500.
00
10,1
20.0
0
H
ighw
ay T
raff
ic S
afet
y)15
7-03
1030
5,50
0.00
1/
1/20
1912
/31/
2019
4,34
5.00
4,34
5.00
4,
345.
00
Tot
al U
.S. D
epar
tmen
t of
Hig
hway
Saf
ety
9,84
5.00
68,2
99.6
0
72
,919
.60
Tot
al F
eder
al A
war
ds9,
845.
00$
18
8,07
3.10
$
192,
693.
10$
-0
-$
SE
E A
CC
OM
PA
NY
ING
NO
TE
S T
O S
CH
ED
UL
ES
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AN
D S
TA
TE
AW
AR
DS
Impa
ired
Dri
ving
C
ount
erm
easu
re
Page 77
2M
OR
RIS
CO
UN
TY
PA
RK
CO
MM
ISS
ION
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F S
TA
TE
AW
AR
DS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
019
Gra
ntT
otal
Nam
e of
Sta
teS
tate
Aw
ard
Cur
rent
Yea
rC
umul
ativ
eA
genc
y or
Dep
artm
ent
Nam
e of
Pro
gram
Acc
ount
No.
Am
ount
Fro
mT
oR
ecei
pts
Exp
endi
ture
sE
xpen
ditu
res
Dep
artm
ent o
f L
aw a
nd P
ubli
c S
afet
yB
ody
Arm
or G
rant
718-
066-
1020
-2,
910.
35$
1/
1/20
1712
/31/
2019
1,95
5.35
$
2,91
0.35
$
001-
6120
3,22
9.96
1/1/
2018
12/3
1/20
193,
229.
96$
3,
229.
96
3,
229.
96
3,22
9.96
5,18
5.31
6,14
0.31
Dru
nk D
rivi
ng E
nfor
cem
ent
6460
-000
-201
4-00
05,
500.
00
1/
1/20
1912
/31/
2019
5,50
0.00
5,50
0.00
5,50
0.00
5,50
0.00
5,50
0.00
5,50
0.00
Tot
al D
epar
tmen
t of
Law
and
Pub
lic
Saf
ety
8,72
9.96
10,6
85.3
1
11
,640
.31
New
Jer
sey
His
tori
c T
rust
His
tori
cal T
rust
8049
-001
F00
0-61
1025
0,00
0.00
1/
1/20
1812
/31/
2019
110,
000.
00
39,3
30.1
0
25
0,00
0.00
Tot
al N
ew J
erse
y H
isto
ric
Tru
st11
0,00
0.00
39
,330
.10
250,
000.
00
Dep
artm
ent o
f S
tate
Gen
eral
Ope
rati
ng S
uppo
rt G
rant
100-
074-
2540
-71
,620
.00
1/
1/20
1712
/31/
2019
35,8
10.0
0
54
,460
.97
71,6
20.0
0
10
5-07
7700
75,9
17.0
0
1/1/
2018
12/3
1/20
2037
,959
.00
13,0
02.9
4
13
,002
.94
Tot
al D
epar
tmen
t of
Sta
te73
,769
.00
67,4
63.9
1
84
,622
.94
Tot
al S
tate
Aw
ards
####
####
####
####
####
####
####
##
Gra
nt P
erio
d
SE
E A
CC
OM
PA
NY
ING
NO
TE
S T
O S
CH
ED
UL
ES
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AN
D S
TA
TE
AW
AR
DS
Page 78
MORRIS COUNTY PARK COMMISSION NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED DECEMBER 31, 2019 Note 1: BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal and state awards (the “Schedules) includes the federal and state grant activity of the Morris County Park Commission under programs of the federal and state governments for the year ended December 31, 2019. The information in these schedules is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules present only a selected portion of the operation of the Commission, they are not intended to and do not present the financial position, changes in fund balance or cash flows of the Commission.
Note 2: SUMMARY OF SIGINFICANT ACCOUNTING POLICIES Expenditures reported on the accompanying schedules of expenditures of federal and state
awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are presented where available. The Commission has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Amounts reported in the accompanying schedules agree with the amounts reported in the related
federal and state financial reports. Note 4: GREEN ACRES LOANS PAYABLE
At December 31, 2019, the County had $55,600.85 of Green Acres Loans Payable outstanding which are recorded in the Park Capital Fund. The project which related to the loan is completed and there were no current year receipts or expenditures on the outstanding loan.
Page 79
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Independent Auditors' Report
The Honorable Members of the Park Commission Morris County Park Commission Morristown, New Jersey
We have audited in accordance with auditing standards generally accepted in the United States of America, 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, the financial statements - regulatory basis - of the various funds of the Morris County Park Commission, in the County of Morris (the "Commission") as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements and have issued our report thereon dated May 29, 2020. These financial statements have been prepared in accordance with accounting practices prescribed or permitted by the Division, to demonstrate compliance with the Division’s regulatory basis of accounting, and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America. That qualified report also indicated that we did not audit the general fixed assets account group.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Commission’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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The Honorable Members of the Park Commission Morris County Park Commission Page 2 May 29, 2020
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commission’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Mount Arlington, New Jersey May 29, 2020
NISIVOCCIA
John J. Mooney Certified Public Accountant Registered Municipal Accountant No. 560
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MORRIS COUNTY PARK COMMISSION SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2019
Summary of Auditors' Results:
- The Independent Auditors’ Report expresses a qualified opinion on the Commission’s financial statementsprepared in accordance with accounting practices prescribed or permitted by the Division of LocalGovernment Services, Department of Community Affairs, State of New Jersey to demonstrate compliancewith the Division’s regulatory basis of accounting and the budget laws of New Jersey, as the general fixedassets account group was not audited.
- There were no material weaknesses or significant deficiencies disclosed during the audit of the financialstatements as reported in the Independent Auditors’ Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards.
- No instances of noncompliance material to the financial statements of the Commission which would berequired to be reported in accordance with Government Auditing Standards, were disclosed during theaudit.
- The Commission was not subject to the single audit provisions of the Uniform Guidance and New Jersey’sOMB Circular 15-08 for the year ended December 31, 2019 as both state and federal grant expenditureswere less than the single audit thresholds of $750,000 identified in the Uniform Guidance and NJOMB 15-08.
Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally Accepted Government Auditing Standards:
- The audit did not disclose any findings required to be reported under Generally Accepted GovernmentAuditing Standards.
Findings and Questioned Costs for Federal Awards:
- Not Applicable since federal expenditures were below the Single Audit threshold.
Findings and Questioned Costs for State Awards:
- Not Applicable since federal expenditures were below the Single Audit threshold.
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MORRIS COUNTY PARK COMMISSION SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED DECEMBER 31, 2019
The Commission had no findings or questioned costs in the year ended December 31, 2018.
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MORRIS COUNTY PARK COMMISSION
PART III
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2019
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MORRIS COUNTY PARK COMMISSION COMMENTS AND RECOMMENDATIONS
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4
N.J.S.A. 40A:11-3 states:
a. " When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceedin a contract year the total sum of $17,500, the contract may be awarded by a purchasing agent when soauthorized by ordinance or resolution, as appropriate to the contracting unit, of the governing body of thecontracting unit without public advertising for bids, except that the governing body of any contracting unitmay adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitationof competitive quotations. If the purchasing agent is qualified pursuant to Subsection b. of Section 9 of P.L.1971, C.198 (N.J.S.A. 40A:11-9), the governing body of the contracting unit may establish that the bidthreshold may be up to $25,000. Such authorization may be granted for each contract or by a general delegationof the power to negotiate and award such contracts pursuant to this section.
b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, exceptthat contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of section5 of P.L. 1971, C.198 (N.J.S.A. 40A:11-5) may be awarded for a period not exceeding 12 consecutive months.The Division of Local Government Services shall adopt and promulgate rules and regulations concerning themethods of accounting for all contracts that do not coincide with the contracting unit’s fiscal year.
c. The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of everyfifth year beginning in the fifth year after the year in which P.L.1999, C.440 takes effect, adjust the thresholdamount and the higher threshold amount which the governing body is permitted to establish, as set forth insubsection a. of this section, or the threshold amount resulting from any adjustment under this subsection, indirect proportion to the rise or fall of the index rate as that term is defined in section 2 of P.L. 1971, C.198(N.J.S.A. 40A:11-2), and shall round the adjustment to the nearest $1,000. The Governor shall, no later thanJune 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall becomeeffective on July 1 of the year in which it is made.”
N.J.S.A. 40A: 11-4 states: “Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded only by resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. The governing body of a contracting unit may, by resolution approved by a majority of the governing body and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body finds that it has had prior negative experience with the bidder.”
Effective July 1, 2015 and thereafter the bid threshold in accordance with N.J.S.A. 40A:11-3 is $17,500, and with a qualified purchasing agent the threshold may have been up to $40,000.
The governing body of the Commission has the responsibility of determining whether the expenditures in any category will exceed the bid threshold within the fiscal year. Where question arises as to whether any contract or agreement might result in violation of the statute, the Commission Attorney’s opinion should be sought before a commitment is made.
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MORRIS COUNTY PARK COMMISSION COMMENTS AND RECOMMENDATIONS
(Continued)
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4 (Cont’d)
The minutes indicated that bids were requested by public advertising per N.J.S.A. 40A:11-4. The minutes also indicated that resolutions were adopted and advertised authorizing the awarding of contracts or agreements for "Professional Services" and "Extraordinary Unspecifiable Services" per N.J.S.A. 40A:11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut violations existed. None were noted.
New Jersey Administrative Code Accounting Requirements
The Division of Local Government Services has established three (3) accounting requirements which are prescribed by the New Jersey Administrative Code. They are as follows:
1. Maintenance of an encumbrance accounting system.
2. Fixed asset accounting and reporting system.
3. General ledger accounting and record system.
The Commission maintains encumbrance, fixed assets and general ledger accounting systems.
Confirming orders
During the course of our audit testing, we noted several instances where purchases were made, or services were rendered prior to the preparation/approval of purchase orders.
Recommendation
It is recommended that purchase orders are prepared/approved prior to the purchase of goods or services to ensure the availability of funds.
Management’s Response
All purchase orders will be prepared/approved prior to the purchase of goods or services to ensure the availability of funds.
Status of Prior Year Comments and Recommendations
There were no prior year recommendations.
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MORRIS COUNTY PARK COMMISSION SUMMARY OF RECOMMENDATIONS
It is recommended that purchase orders are prepared/approved prior to the purchase of goods or services to ensure the availability of funds.
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