township of denville county of morris report of audit

TOWNSHIP OF DENVILLE

COUNTY OF MORRIS

REPORT OF AUDIT

2011

NISIVOCCIA LLP CERTIFIED PUBLIC ACCOUNTANTS


COUNTY OF MORRIS

REPORT OF AUDIT

2011

TOWNSHIP OF DENVILLE TABLE OF CONTENTS

YEAR ENDED DECEMBER 31. 2011

Part I - Financial Statements and Supplementary Data Independent Auditors' Report

Financial Statements Current Fund

Comparative Balance Sheet Comparative Statement of Operations and Change in Fund Balance Statement of Revenue Statement of Expenditures

Trust Funds Comparative Balance Sheet Statement of Fund Balance - Assessment Trust Fund Statement of Revenue - Assessment Trust Fund (Not Applicable) Statement of Expenditures - Assessment Trust Fund (Not Applicable)

General Capital Fund Comparative Balance Sheet Statement of Fund Balance

Water Utility Fund Comparative Balance Sheet Comparative Statement of Operations and Change in Fund Balance

- Water Utility Operating Fund Statement of Capital Fund Balance - Water Utility Capital Fund Statement of Revenue - Water Utility Operating Fund Statement of Expenditures - Water Utility Operating Fund

Sewer Utility Fund Comparative Balance Sheet Comparative Statement of Operations and Change in Fund Balance

- Sewer Utility Operating Fund Statement of Fund Balance - Sewer Assessment Trust Fund Statement of Capital Fund Balance - Sewer Utility Capital Fund Statement of Revenue - Sewer Utility Operating Fund Statement of Revenue - Sewer Assessment Trust Fund (Not Applicable) Statement of Expenditures - Sewer Utility Operating Fund Statement of Expenditures - Sewer Assessment Trust Fund (Not Applicable)

Public Assistance Fund Comparative Balance Sheet

Bond and Interest Fund (Not Applicable) General Fixed Assets Account Group (Unaudited)

Comparative Balance Sheet (Unaudited)

Notes to Financial Statements

Page 1-2

Exhibit

A A-I A-2 A-3

B B-1 B-2 B-3

C C-I

D

D-I D-IA

D-2 D-3

E

£-1 E-IA E-IB

E-2 E-2A

E-3 E-3A

F

H

Page 1-19

TOWNSHlP OF DENVILLE TABLE OF CONTENTS

YEAR ENDED DECEMBER 31, 2011 (Continued)

Part I - Financial Statements and Supplementary Data (Cont'd) Supplementary Data

Officials in Office and Surety Bonds Current Fund

Schedule of Cash - Treasurer Schedule of Cash - Collector Schedule of Cash - Grant Funds (Not Applicable) Schedule of Taxes Receivable and Analysis of Property Tax Levy Schedule of Tax Title Liens Schedule of Revenue Accounts Receivable Schedule of Trash Collection Fees Receivable Schedule of 20 1 0 Appropriation Reserves Schedule of Local School District Taxes Payable Schedule of Regional High School Taxes

Trust Funds Schedule of Cash - Treasurer Schedule of Cash - Animal Control Collector Analysis of Cash - Assessment Trust Fund (Not Applicable) Schedule of Reserve for Animal Control Fund Expenditures

General Capital Fund Schedule of Cash - Treasurer Analysis of General Capital Cash Schedule of Deferred Charges to Future Taxation - Unfunded Schedule of Improvement Authorizations Schedule of Capital Improvement Fund Schedule of Bond Anticipation Notes Schedule of General Serial Bonds Schedule of Morris County Improvement Authority Leases Payable Schedule of Bonds and Notes Authorized but not Issued

Water Utility Fund Schedule of Cash - Treasurer - Water Utility Fund Schedule of Cash - Collector - Water Utility Operating Fund Analysis of Water Capital Cash - Water Utility Capital Fund Schedule of Consumer Accounts Receivable - Water Utility Operating Fund Schedule of Water Liens Receivable - Water Utility Operating Fund Schedule of Inventory - Water Utility Operating Fund Schedule of Fixed Capital- Water Utility Capital Fund Schedule of Fixed Capital Authorized and Uncompleted - Water Utility Capital Fund Schedule of 20 1 0 Appropriation Reserves - Water Utility Operating Fund Schedule of Improvement Authorizations - Water Utility Capital Fund Schedule of Capital Improvement Fund - Water Utility Capital Fund Schedule of Deferred Reserve for Amortization - Water Utility Capital Fund Schedule of Reserve for Amortization - Water Utility Capital Fund Schedule of Bond Anticipation Notes - Water Utility Capital Fund (Not Applicable) Schedule of Water Capital Serial Bonds - Water Utility Capital Fund (Not Applicable) Schedule of Morris County Improvement Authority Leases Payable

- Water Utility Capital Fund Schedule of Bonds and Notes Authorized but not Issued - Water Utility Capital Fund

Schedule

1

A-4 A-5 A-6 A-7 A-8 A-9

A-lO A-ll A-12 A-13

B-4 B-4A

B-5 B-6

C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9

C-lO

D-4 D-4A

D-5 D-6

D-6A D-6B

D-7 D-8 D-9

D-IO D-li D-l2

D-l2A D-13 D-l4

D-l5 D-l6



Part I - Financial Statements and Supplementary Data (Cont'd) Supplementary Data (Cont'd)

Sewer Utility Fund Schedule of Cash - Treasurer - Sewer Utility Fund Schedule of Cash - Collector - Sewer Utility Operating Fund Analysis of Sewer Assessment Trust Cash - Sewer Assessment Trust Fund Analysis of Sewer Capital Cash - Sewer Utility Capital Fund Schedule of Consumer Accounts Receivable - Sewer Utility Operating Fund Schedule of Sewer Liens Receivable - Sewer Utility Operating Fund Schedule of Inventory - Sewer Utility Operating Fund Schedule of Prospective Assessments Raised by Utility Revenue - Sewer Assessment

Trust Fund (Not Applicable) Schedule of Utility Share of Sewer Assessment Bonds Issued - Sewer Assessment Trust Fund (Not Applicable)

Schedule of Amount to be Raised by Future Revenue for Cancelled Assessments -Sewer Assessment Trust Fund (Not Applicable)

Schedule of Assessments Receivable - Sewer Assessment Trust Fund Schedule of Fixed Capital- Sewer Utility Capital Fund Schedule of Fixed Capital Authorized and Uncompleted - Sewer Utility Capital Fund Schedule of 20 1 0 Appropriation Reserves - Sewer Utility Operating Fund Schedule of Reserve for Assessments and Liens - Sewer Assessment Trust Fund Schedule of Improvement Authorizations - Sewer Utility Capital Fund Schedule of Capital Improvement Fund - Sewer Utility Capital Fund Schedule of Reserve for Amortization - Sewer Utility Capital Fund Schedule of Deferred Reserve for Amortization - Sewer Utility Capital Fund Schedule of Morris County Improvement Authority Leases Payable

- Sewer Utility Capital Fund Schedule of New Jersey Environmental Wastewater Trust Loans Payable

- Sewer Utility Capital Fund Schedule of Bond Anticipation Notes - Sewer Utility Capital Fund Schedule of Sewer Assessment Serial Bonds - Sewer Assessment Trust Fund (Not Applicable) Schedule of Serial Bonds - Sewer Utility Capital Fund .. .. Schedule of Bonds and Notes Authorized but not Issued - Sewer Utility Capital Fund

Public Assistance Fund Schedule of Cash - Treasurer

Part II Single Audit Schedule of Expenditures of Federal Awards Schedule of Expenditures of State Awards Notes to Schedules of Expenditures of Federal and State Awards Independent Auditors' Report on Internal Control Over Financial Reporting on Compliance

and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Independent Auditors' Report on Compliance with Requirements Applicable That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 and New Jersey's OMB Circular NJOMB 04-04

Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings

Schedule

E-4 E-4A

E-5 E-5A

E-6 E-6A E-6B

E-7

E-8

E-8A E-9

E-IO E-ll E-12 E-13 E-14 E-15 E-16

E-I6A

E-17

E-17A E-18 E-19

E-I9A E-20

F-l

Page 1

2-3 4

5-6

7-8 9-10

11



Part III - Comments and Recommendations Comments and Recommendations Summary of Recommendations

Page 12-15

16


PART!

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


ON I S I V 0 eel A LLP Certified Public Accountants & Advisors

The Honorable Mayor and Members of the Township Council

Township of Denville Denville, New Jersey

Independent Auditors' Report

Mount Arlington Corporate'Center 200 Valley Road, Suite 300

Mt Arlington, NJ 07856 973-328-18251973-328-0507 Fax

Lawrence Business Center 11.. Lawrence Road Newton, NJ 07860

973-383-6699 I 973-383-6555 Fax

We have audited the financial statements-regulatory basis of the various funds of the Township of Denville in the County of Morris (the "Township") as of and for the years ended December 31, 2011 and 2010, as listed in the table of contents. These financial statements are the responsibility of the Township's management. Our responsibility is to express opinions on these fmancial statements based on our audits.

Except as discussed in the fourth paragraph, we conducted our audits 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 fmancial 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinions.

As described in Note I, these financial statements have been prepared in conformity with accounting principles prescribed by the Division that demonstrate compliance with the modified accrual basis, with certain exceptions, and the budget laws of New Jersey, which is a comprehensive 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 statutory basis of accounting and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

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. We are, therefore, unable to express an opinion as to the general fixed assets account group at December 31, 2011 and 2010 stated at $25,699,099 and $25,353,484, respectively.

In our opinion, because the Township prepares its financial statements on the basis of accounting discussed in the third paragraph, the financial statements referred to in the first paragraph, do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the Township as of December 31, 2011 and 2010, and the results of its operations for the years then ended.

'I-I'vV'vV.nislvoccia.com Independent Member of BKR International

1


Township of Denville Page 2

However, in our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had the general fixed assets account group been audited, the fmancial statements-regulatory basis referred to above, present fairly, in all material respects, the financial position of the various funds of the Township of Denville at December 31, 2011 and 2010, and the results of operations and changes in fund balance, where applicable, of such funds, thereof for the years then ended, in conformity with accounting principles prescribed by the Division, as described in Note 1.

In accordance with Government Auditing Standards, we have also issued our report dated April 6, 2012, on our consideration of the Township of Denville's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits.

Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the Township'S financial statements as a whole. The information included in the supplementary data schedules listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. The accompanying schedules of expenditures of federal and state awards are also presented for purposes of additional analysis and are required by U.S. Office of Management and Budget Circular A-l33, Audits of States, Local Governments and Nonprofit Organizations; and New Jersey's OMB Circular NJOMB-04-04, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, and are not a required part of the financial statements. The supplementary data schedules listed in the table of contents 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. The information has been subjected to the auditing procedures applied in the audit of the fmancial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole on the basis of accounting described in Note 1 to the financial statements and Note B to the schedules of expenditures of federal and state awards.

April 6, 2012 NISIVOCCIA LLP Mount Arlington, New Jersey

Registered Municipal Accountant No. 383

2


COUNTY OF MORRIS 2011

CURRENT FUND

TOWNSHIP OF DENVILLE CURRENT FUND

COMPARATIVE BALANCE SHEET

A lof2

December 31,

Cash and Cash Equivalents:

Treasurer Change Funds

ASSETS

Due From State of New Jersey Senior Citizen and Veterans Deductions

Receivables and Other Assets With Full Reserves: Delinquent Property Taxes Receivable

Tax Title Liens Receivable Property Acquired for Taxes - Assessed Valuation Revenue Accounts Receivable

Trash Collection Fees Receivable Due from Other Trust Fund Due from Animal Control Trust Fund

Due from General Capital Fund

Total Receivables and Other Assets

Deferred Charges: Emergency Authorizations (40A: 4-54)

TOTAL ASSETS

2011

A-4 $ 6,554,225.76

350.00

6,554,575.76

16,387.93

A-7 701,022.35 A-8 661,274.30

546,132.00 A-9 37,312.50

A-tO 193,220.25 B 449.61 B 20.56 C 673.39

2,140,104.96

257,086.00

$ 8,968,154.65

2010

$ 6,812,570.84

350.00

6,812,920.84

18,357.11

689,689.46

576,779.57 546,132.00 159,063.73 148,698.17

41.01

2,120,403.94

$ 8,951,681.89

A 20f2



December 31

Ref. 2011 2010 LlABlLITIES, RESERVES AND FUND BALANCE

Appropriation Reserves: Unencumbered A-3;A-ll $ 631,541.35 $ 808,829.22

Encumbered A-3;A-ll 328,738.01 422,532.76

Total Appropriation Reserves 960,279.36 1,231,361.98

Accounts Payable - Vendors 68,550.00 20,498.75

Tax Sale Premiums 290,200.00 165,200.00

Tax Overpayments 19,159.29 46,139.52

Prepaid Taxes 329,775.35 298,606.36

Third Party Tax Title Lien Redemptions 2,258.88 907.99 Due to State of New Jersey - Building Surcharge Fees 5,078.00 5,901.00

Due to General Capital Fund C 30,000.00

Due County for Added & Omitted Taxes 14,744.61 20,441.02

Reserve for Pending Tax Appeals 475,000.00 375,000.00 Reserve for Revaluation of Real Property 16,560.00 16,560.00

Reserve for Garden State Preservation Trust Fund 6,771.00

Reserve for Storm Related Expenses - Emergency 136,682.87

Reserve for Forfeited Bail 9,844.17 8,267.89

Appropriated Grant Reserves: Municipal Alcohol Education & Rehab Grant 5,175.00

Atlantic Health Child Passenger Safety 45.02

Recreational Trails Program Grant 7,247.16

ANJEC Grant 3,000.00

Unappropriated Grant Reserves: Recycling Tonnage Grants 58,993.45 64,132.88 Alcohol Education Rehabilitation Grants 4,458.17 8,736.68

Energy Audit 3,647.00

Body Armor Replacement Fund 3,142.23 3,180.80

Drunk Driving Enforcement Funds 11,974.50 12,459.99

Kid Safe Pedestrian Crosswalk Grant 500.00 Atlantic Health Child Passenger Safety Grant 500.00 Clean Communities Grant 5,516.09 5,801.54 Bulletproof Vest Partnership Grant 76.28 76.28

2,435,031.43 2,317,419.68

Reserve for Receivables and Other Assets A 2,140,104.96 2,120,403.94

Fund Balance A-I 4,393,018.26 4,513,858.27

TOTAL LlABlLITIES, RESERVES AND FUND BALANCE $ 8,968,154.65 $ 8,951,681.89

THE ACCOMP ANYlNG NOTES TO FlNANClAL STATEMENTS

ARE AN lNTEGRAL PART OF THIS STATEMENT


A-I

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE

Revenue and Other Income Realized Fund Balance Utilized Miscellaneous Revenue Anticipated Receipts from Delinquent Taxes Receipts from Current Taxes Nonbudget Revenue Other Credits to Income:

Unexpended Balance of Appropriation Reserves Interfunds Returned Cancellation of Tax Sale Premiums Cancellation of Tax Overpayments

Total Income

Expenditures Budget and Emergency Appropriations:

Municipal Purposes County Taxes Local District School Tax Regional High School Tax Municipal Open Space Tax Prior Year Veterans and Senior Citizens Disallowed Increase in Reserve for Pending Tax Appeals Interfunds Advanced

Total Expenditures

Excess in Revenue

Adjustment to Excess Before Fund Balance: Expenditures included above which are by Statute

Deferred Charges to Budget of Succeeding Year

Statutory Excess to Fund Balance

Fund Balance Balance January 1

Decreased by: Utilization as Anticipated Revenue

Balance December 3 1

Ref. Year Ended December 31,

A

2011 2010

$ 2,522,911.00 6,129,073.44

689,285.45 62,415,009.70

694,880.51

211,424.24 41.01

37.09

72,662,662.44

18,889,100.23 8,056,162.11

25,539,181.50 17,129,049.14

685,357.26

217,683.65 1,143.56

70,517,677.45

2,144,984.99

257,086.00

2,402,070.99

4,513,858.27 6,915,929.26

2,522,911.00

$ 4,393,018.26

$ 2,377,852.00 5,257,272.17

747,817.97 60,722,890.50

499,946.21

339,747.28 39.96

18,600.00 1,862.45

69,966,028.54

17,691,388.04 7,822,050.73

25,003,886.00 16,066,658.53

688,916.97 1,750.00

149,697.16 41.01

67,424,388.44

2,541,640.10

2,541,640.10

4,350,070.17 6,891,710.27

2,377,852.00

$ 4,513,858.27

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT

Fund Balance Anticipated

Miscellaneous Revenue:

Licenses:

Alcoholic Beverage

Other Fees and Pennits

Municipal Court Fines and Costs

Interest and Costs on Taxes

Parking Meters

Interest on Investments & Deposits

Off-Street Parking Pennits

Senior Citizens' Committee

Board of Health:

Licenses

Fees and Pennits

User Fee - Collection of Garbage

Energy Receipts Taxes

Unifonn Construction Code Official

Boonton Township Health Service

Morris Hills High School SRO Services

Mountain Lakes Court Services

Morris Plains Animal Control Services

Library Note Principal

Library Note Interest


CURRENT FUND

STATEMENT OF REVENUE


Anticipated

Added by

Budget NJ.S.A 40A:4-87

$ 2,522,911.00

30,316.00

5,200.00

40,113.00

320,000.00

100,000.00

13,000.00

17,600.00

55,400.00

1,500.00

62,000.00

27,000.00

1,605,700.00

1,805,216.00 320,000.00

24,120.00

48,205.00

55,263.00

12,000.00

878,772.00

21,300.00

Realized

$ 2,522,911.00

30,566.00 $ 4,800.00

84,721.76

366,720.04

175,053.36

9,776.55

41,821.62

91,173.00

1,817.35

76,281.94

39,203.67 1,669,837.34

1,805,216.00

395,854.55

12,701.32

48,205.00

55,263.00

12,000.00

878,771.44

21,300.00

Excess or

Deficit *

A-2

lof4

250.00

400.00 * 44,608.76

46,720.04

75,053.36

3,223.45 * 24,221.62

35,773.00

317.35

14,281.94

12,203.67 64,137.34

75,854.55

11,418.68 *

0.56 *

-0;:" "">, .(>.N


CURRENT FUND

STATEMENT OF REVENUE YEAR ENDED DECEMBER 31. 2011

(Continued)

Anticipated

Added by Budget N.J.S.A 40A:4-87

Miscellaneous Revenue:

Reserve to Pay Debt Service $ 158,000.00 Reserve for Recycling Tonnage Grant 65,000.00 Reserve for Drunk Driving Enforcement Fund 11,000.00 Reserve for Clean Communities 5,801.00 Reserve for Body Armor Replacement Fund Grant 3,180.00 Reserve for Atlantic Health Child Passenger Safety Grant 500.00 Reserve for Alcohol Rehabilitation Grant 8,000.00 Clean Communities 26,464.00 Division of Highway Safety - Click It or Ticket Grant $ 4,000.00 Reserve for Energy Audit 3,647.00 Municipal Alliance on Alcoholism and Drug Abuse 13,062.00 Bullet Proof Vest Partnership 5,148.00 NACCHO Health Grant 10,000.00 ANJEC Grant 3,000.00

Total Miscellaneous Revenue 5,751,860.00 7,647.00

Receipts from Delinquent Taxes 452,000.00

Amount to be Raised by Taxes for Support of Municipal Local Tax for Municipal Library 1,132,408.00 Local Tax for Municipal Purposes 10,673,648.00

Budget Totals 20,532,827.00 7,647.00

Nonbudget Revenue

Totals $ 20,532,827.00 $ 7,647.00

Realized

$ 158,000.00

65,000.00

11,000.00

5,801.00 3,180.00

500.00

8,000.00 26,464.00

4,000.00 3,647.00

7,489.20 $ 5,148.00

9,760.30

6,129,073.44

689,285.45

1,132,408.00 11,781,309.69

22,254,987.58

694,880.51

$ 22,949,868.09 $

A-2

20f4

Excess or

Deficit *

5,572.80 *

239.70 * 3,000.00 *

369,566.44

237,285.45

1,107,661.69

1,714,513.58

694,880.51

2,409,394.09 tv 0:> "'" .... tv


CURRENT FUND

STATEMENT OF REVENUE


(Continued)

Allocation of Current Tax Collections:

Revenue from Collections Allocated to School, County and Open Space Taxes

Balance for Support of Municipal Budget Appropriations

Add: Appropriation "Reserve for Uncollected Taxes"

Realized for Support of Municipal Budget Appropriations

Receipts from Delinquent Taxes:

Delinquent Tax Collections

Fees and Permits - Other:

Township Clerk

Police Department

Planning and Zoning

Fire Official

Tax Search Fees and Other Fees

Interest on Investments & Deposits:

Collections

Due from Other Trust Funds

Due from Animal Control Trust Fund

Due from General Capital Fund

$ 5,484.65

7,649.95

35,367.16

36,200.00

20.00

A-2

30f4

$ 62,415,009.70

51,409,750.01

11,005,259.69

1,908,458.00

$ 12,913,717.69

$ 689,285.45

$ 84,721.76

$

$

31,075.88

4,163.98

358.49 6,223.27

41,821.62

Analysis of Non budget Revenue:


STATEMENT OF REVENUE YEAR ENDED DECEMBER 31, 2011

(Continued)

Miscellaneous Revenue Not Anticipated:

Cable TV Franchise Fee Unifonn Fire Safety Fees Interest on Garbarge Fees Payment In Lieu of Taxes

$ 222,938.29

FEMA Reimbursements 20 I 0 Stonns

Hotel Tax Recycling Reimbursement

Other

Revenue Accounts Receivable: Collection of Prior Year Grants

Over the Limit Grant Highlands Initial Assessment Grant Municipal Alliance

Tax Collector Various Reserves Cancelled - Due from Other Trust Funds

Less: Refunded

35,826,67 11,544,87 46,231,00 67,264,95 66,328,86 25,336,50 70,822,83

5,000,00 22,683,75

8,334,87


A-2 40f4

$ 546,293,97

36,018.62

7,587.85 107,907.24 697,807.68

2,927.17

$ 694,880.51

Operations Within "CAPS":

GENERAL GOVERNMENT: Department of Administration:

Salaries and Wages Other Expenses

Division of Human Resources:


Office of the Mayor: Salaries and Wages Other Expenses

Municipal Council and Township Clerk's Office: Salaries and Wages

Other Expenses

Financial Administration: Salaries and Wages

Other Expenses Audit Services:

Other Expenses Collection of Taxes:


Assessment of Taxes: Salaries and Wages

Other Expenses Legal Services and Costs:

Other Expenses


STATEMENT OF EXPENDITURES


Appropriations

Budget After Budget Modification

$ 187,973.00 187,973.00 47,700.00 39,700.00

18,760.00 18,760.00 31,700.00 31,700.00

6,000.00 6,000.00 12,200.00 12,200.00

162,970.00 166,770.00 43,500.00 34,700.00

135,520.00 135,520.00

16,250.00 16,250.00

28,481.00 28,481.00

72,309.00 72,309.00 19,240.00 14,240.00

113,936.00 113,936.00 34,200.00 24,200.00

161,500.00 161,500.00

$

Expended By Paid or Charged

187,568.08 32,487.69

17,801.38 31,545.92

6,000.00 12,124.64

165,061.07 20,407.71

129,781.59

14,020.13

25,697.00

72,259.05

10,576.88

111,115.60

20,340.86

134,085.05

$

Reserved

404.92 7,212.31

958.62 154.08

75.36

1,708.93 14,292.29

5,738.41

2,229.87

2,784.00

49.95

3,663.12

2,820.40

3,859.14

27,414.95

A-3

I of 10

Unexpended

Balance Cancelled

-o ""> - , ow

Operations Within "CAPS":

GENERAL GOVERNMENT:

Engineering Services and Costs:

Salaries and Wages

Other Expenses

Municipal Land Use Law (N.I.S.A. 40:55D-l):

Planning Board:

Salaries and Wages

Other Expenses

Zoning Board of Adjustment:

Salaries and Wages

Other Expenses

PUBLIC SAFETY:

Municipal Court:

Salaries and Wages

Other Expenses

Public Defender:

Other Expenses

Police Department:

Salaries and Wages (N.I.S.A 40A:4-54, +$31,602.00)

Other Expenses

Police Dispatchl911:

Salaries and Wages

Other Expenses


CURRENT FUND


YEAR ENDED DECEMBER 31, 2011

(Continued)

$

Appropriations

Budget

75,694.00 $

85,500.00

26,964.00

63,350.00

58,546.00

42,750.00

198,707.00

24,650.00

9,500.00

3,774,365.00

305,594.00

351,520.00

22,000.00

Budget After

Modification

70,694.00 $

85,500.00

26,964.00

59,350.00

58,546.00

38,750.00

198,707.00

21,650.00

9,500.00

3,799,967.00

294,594.00

351,520.00

18,000.00

Expended By

Paid or

Charged

66,947.44 $

83,933.63

21,597.23

55,912.86

54,743.08

27,385.98

196,964.89

14,356.11

8,750.00

3,793,346.23

271,069.36

336,289.86

16,061.93

Reserved

3,746.56

1,566.37

5,366.77

3,437.14

3,802.92

11,364.02

1,742.11

7,293.89

750.00

6,620.77

23,524.64

15,230.14

1,938.07

A-3

20fl0

Unexpended

Balance

Cancelled

N 0 "";J> - , OW

Operations Within IICAPSII :

PUBLIC SAFETY: Office of Emergency Management:


Aid to Volunteer Fire Companies: Salaries and Wages:

Fire Chief Clerical

Other Expenses

Aid to Volunteer Ambulance Companies: Other Expenses

Uniform Fire Safety Act:


Municipal Prosecutor's Office: Salaries and Wages Other Expenses

PUBLIC WORKS: Streets and Roads Maintenance:

Salaries and Wages (N.J.S.A 40A:4-54, +$71,303.00) Other Expenses

Snow Removal: Salaries and Wages

Other Expenses (N.J.S.A 40A:4-54, +$25,000.00) Maintenance of Off-Street Parking Meters:

Other Expenses


STATEMENT OF EXPENDITURES YEAR ENDED DECEMBER 31, 2011

(Continued)

Appropriations


$ 8,155.00 $ 8,155.00 $ 4,500.00 4,500.00

3,000.00 3,000.00 27,225.00 27,225.00

130,000.00 130,000.00

56,300.00 56,300.00

44,576.00 44,576.00 4,150.00 4,150.00

34,880.00 34,880.00 1,000.00 1,000.00

869,012.00 940,315.00 251,750.00 275,750.00

135,000.00 135,000.00

178,400.00 203,400.00

11,800.00 11,800.00

Expended By

Paid or Charged

8,155.00 2,145.08 $

3,000.00 26,070.00

129,880.32

56,049.38

42,178.80 2,661,66

34,880.00 84.10

907,516.42

274,290.06

132,167.85

203,298.93

5,462.05

Reserved

2,354.92

1,155.00

119.68

250.62

2,397.20

1,488.34

915.90

32,798.58

1,459.94

2,832.15 101,07

6,337.95

A-3

3 of 10

Unexpended

Balance Cancelled

W 0 ...,> - , OW

Operations Within "CAPS tr:

PUBLIC WORKS:

Solid Waste Collections: Salaries and Wages Other Expenses

Building and Grounds: Salaries and Wages Other Expenses

Beautification Committee: Other Expenses

Shade Tree: Other Expenses (N,J,S,A 40A:4-54, +$16,415,00)

Mosquito/Insect Control: Other Expenses

HEALTH AND HUMAN SERVICES: Division of Health:

Salaries and Wages

Other Expenses Animal Control Services:

Salaries and Wages

Other Expenses

Administration of Public Assistance: Salaries and Wages Other Expenses

Environmental Commission: Other Expenses


CURRENT FUND STATEMENT OF EXPENDITURES

YEAR ENDED DECEMBER 31, 20 II (Continued)

$ 130,940,00

735,000,00

42,847,00

155,600,00

8,500,00

39,500,00

1,000,00

225,746,00

28,200,00

10,267,00 9,000,00

28,625.00

3,500.00

5,400.00

$

Budget After

Modification

130,940,00 735,000,00

37,847,00 155,600,00

8,500,00

58,415,00

1,000,00

215,946,00 33,000,00

10,267,00 9,000,00

28,625.00 3,500,00

5,400.00

$

Expended By Paid or Charged

110,641.75 700,497,16

34,262,55

155,094,62

6,542,96

57,868,00

312,00

206,820.46

28,641.71

10,267,00

7,186.49

28,358.97

1,342.16

951.00

Reserved

20,298,25 34,502,84

3,584.45 505,38

1,957,04

547,00

688,00

9,125,54 4,358,29

1,813.51

266.03 2,157.84

4,449.00

A-3

40flO

Unexpended Balance

Cancelled

..,. 0 ....,:> ~ , ow

Operations Within "CAPS"; PARKS AND RECREATION FUNCTIONS:

Recreation Services: Salaries and Wages

Other Expenses

Maintenance of Parks:

Salaries and Wages

Other Expenses

OTHER COMMON OPERATING FUNCTIONS:

Accumulated Leave Compensation:

Salaries and Wages

Senior Citizens' Commission: Salaries and Wages

Other Expenses

Celebration of Public Events:

Other Expenses

Community Television:

C?ther Expenses

UTILITY EXPENSE AND BULK PURCHASES:

Electricity

Street Lighting

Telephone

Water


CURRENT FUND


YEAR ENDED DECEMBER 31. 20 II (Continued)

$

Appropriations

Budget

119,866.00 $ 41,850.00

125,671.00

198,375.00

80,000.00

82,554.00

21,100.00

15,000.00

3,750.00

211,500.00

175,000.00

89,200.00

5,500.00

Budget After

Modification

109,866.00 $ 32,850.00

126,671.00

197,375.00

80,000.00

82,554.00

21,100.00

15,000.00

3,750.00

211,500.00

175,000.00

89,200.00

5,500.00

Expended By

Paid or

Charged

107,011.18 $ 23,623.88

125,184.84

171,407.34

55,464.35

78,738.91

17,215.87

9,531.80

680.73

182,016.80

167,179.26

75,364.52

4,705.23

Reserved

2,854.82

9,226.12

1,486.16

25,967.66

24,535.65

3,815.09

3,884.13

5,468.20

3,069.27

29,483.20

7,820.74

13,835.48

794.77

A-3

50f1O

Unexpended

Balance

Cancelled

'" 0 "";p. ~ , ow

Operations Within "CAPSII: UTILITY EXPENSE AND BULK PURCHASES:

Natural Gas

Sewerage Processing and Disposal

Solid Waste Disposal Costs (N.I.S.A 40A:4-54, +$112,766.00)

Storm Water Management:

Other Expenses

STATE UNIFORM CONSTRUCTION CODE: Construction Official:

Salaries and Wages

Other Expenses

Insurance: General Liability

Workers Compensation

Employee Group Health

Unemployment Insurance

Total Operations Within "CAPS" Contingent

Total Operations Including Contingent Within "CAPS"

Detail:

Salaries and Wages

Other Expenses




(Continued)

$

Appropriations

Budget

78,000.00 $

3,000.00

675,000.00

5,000.00

303,284.00

22,750.00

167,000.00

159,000.00

1,002,500.00

15,000.00

12,915,152.00

200.00

12,915,352.00

7,454,912.00

5,460,440.00

Budget After

Modification

78,000.00 $

3,000.00

855,266.00

5,000.00

303,284.00

22,750.00

167,000.00

159,000.00

1,002,500.00

15,000.00

13,172,238.00

200.00

13,172,438.00

7,526,817.00

5,645,621.00

Expended By

Paid or Charged

52,445.92 $

2,999.00

821,991.51

1,000.00

289,611.19

20,105.52

148,481.68

158,080.06

1,002,174.91

15,000.00

12,644,872.23

12,644,872.23

7,359,804.77

5,285,067.46

Reserved

25,554.08

1.00 33,274.49

4,000.00

13,672.81

2,644.48

18,518.32

919.94

325.09

527,365.77

200.00

527,565.77

167,012.23

360,553.54

A-3

6 of 10

Unexpended

Balance

Cancelled

0\ o '""> - , ow




Appropriations


Deferred Charges and Statutory Expenditures - Municipal within "CAPS": Statutory Expenditures:

Contributions to:

Police & Firemens' Retirement System $ 367,880.00 $ 367,880.00 Public Employees' Retirement System 935,830.00 935,830.00 Public Employees' DCRP System 4,000.00 4,000.00 Social Security System (O.A.S.L) 467,900.00 467,900.00

Total Deferred Charges and Statutory Expenditures -Municipal Within "CAPS" 1,775,610.00 1,775,610.00

Total General Appropriations for Municipal Purposes Within "CAPS" 14,690,962.00 14,948,048.00

Operations Excluded from "CAPS":

Maintenance of Free Public Library (PL 1988, Ch.82): Other Expenses 1,132,408.00 1,132,408.00

InterIocal Agreement Boonton Township: Health Services 24,120.00 24,120.00

InterIocal Agreement Morris Plains Borough: Animal Control Services 12,000.00 12,000.00

Public & Private Programs Offset by Revenue: Reserve for Drunk Driving Enforcement Fund 11,000.00 11,000.00 Clean Communities Program - Board of Health 26,464.00 26,464.00 Reserve Clean Communities Program-Board of Health 5,801.00 5,801.00 Recycling Tonnage Grant 65,000.00 65,000.00 Body Armor Replacement Grant 3,180.00 3,180.00 Atlantic Health Child Passenger Safety 500.00 500.00

Expended By Paid or Charged Reserved

$ 367,879.00 $ 1.00

935,830.00 4,000.00

429,876.03 38,023.97

1,737,585.03 38,024.97

14,382,457.26 565,590.74

1,132,408.00

14,863.20 9,256.80

12,000.00

11,000.00

26,464.00 3,043.44 2,757.56

65,000.00 3,180.00

499.97 0.03

A-3

7 of 10

Unexpended Balance

Cancelled

-.J 0 ...,,> ~ , ow

Public & Private Programs Offset by Revenue (Cont'd): New Jersey Division of Highway Safety:

Click -It or Ticket Grant (N.J.S.A 40A:4-87, +$4,000.00) Bulletproof Vest Partnership Municipal Alcohol Education & Rehab Grant ANJECGrant

NACCHO Grant

Energy Audit (N.J.S.A 40A:4-87, +$3,647.00) Municipal Alliance Grant

Municipal Alliance Grant Match

Total Operations - Excluded from "CAPS"

Detail: Other Expenses

Capital Improvements - Excluded from "CAPS": Capital Improvement Fund Acquisition of Fire Gear Evaluation of Cook's Pond Dam

Curbside Replacement Program Indian Lake Wall Drainage Projects

Fire Escape Sidewalk

Total Capital Improvements - Excluded from "CAPS"



YEAR ENDED DECEMBER 31,2011 (Continued)

Appropriations Budget After

Budget Modification

$ 4,000.00 $ 5,148.00 5,148.00

8,000.00 8,000.00 3,000.00 3,000.00

10,000.00 10,000.00 3,647.00

13,062.00 13,062.00 3,266.00 3,266.00

1,322,949.00 1,330,596.00

1,322,949.00 1,330,596.00

9,900.00 9,900.00 17,500.00 17,500.00 10,000.00 10,000.00 10,000.00 10,000.00 15,000.00 15,000.00 10,000.00 10,000.00 5,000.00 5,000.00

77,400.00 77,400.00

A-3

8 of 10

Expended By Unexpended Paid or Balance Charged Reserved Cancelled

$ 4,000.00 2,347.50 $ 2,800.50 7,600.00 400.00

3,000.00

10,000.00 3,647.00

13,062.00 3,219.53 46.47

1,312,334.64 18,261.36

1,312,334.64 18,261.36

9,900.00 17,250.75 249.25

10,000.00

10,000.00 15,000.00 10,000.00

2,560.00 2,440.00

29,710.75 47,689.25

DO

0

'""> - , ow

Municipal Debt Service - Excluded from "CAPS": Payment of Bond Principal Payment of Bond Anticipation Notes Interest on Bonds

Interest on Notes

Morris County Improvement Authority Lease Principal Morris County Improvement Authority Lease Interest Payment of Bond Anticipation Notes and Capital Notes - Library Interest on Notes - Library

Total Municipal Debt Service - Excluded from "CAPS"

Deferred Charges - Excluded from "CAPS": Deferred Charges to Future Taxation - Unfunded

Total Deferred Charges - Excluded from "CAPS"

Total General Appropriations - Excluded from "CAPS"

Subtotal General Appropriations

Reserve for Uncollected Taxes

Total General Appropriations




Appropriations

Budget After

Budget Modification

$ 360,500,00 $ 360,500,00

275,000,00 275,000,00

24,553,00 24,553,00 34,938,00 34,938,00

398,178,00 398,178,00

439,817,00 439,817,00 878,772,00 878,772.00 21,300,00 21,300,00

2,433,058,00 2,433,058,00

100,000,00 100,000,00

100,000,00 100,000,00

3,933,407,00 3,941,054,00

18,624,369,00 18,889,102,00

1,908,458,00 1,908,458,00

$ 20,532,827,00 $ 20,797,560,00

Ref,

Expended By

$

Paid or Charged

360,500,00 275,000,00

24,553,00

34,937.43 398,178,00 439,816,36

878,771.44 21,300,00

2,433,056,23

100,000,00

100,000,00

3,875,101.62

18,257,558,88

1,908,458,00

$ 20,166,016,88

Reserved

$ 65,950,61

631,541.35

$ 631,541.35

A

$

$

A-3

90flO

Unexpended Balance

Cancelled

'" o

0.57

0,64 0,56

1.77

1.77

1.77

1.77

...,;> - , ow


CURRENT FUND


(Continued)

Analysis of

Adopted Budget

Added by NJSA 40A:4-54

Added by N.J.S.A. 40A:4-87

Cash Disbursed

Encumbrances

Due Other Trust Fund

Due General Capital Fund

Reserve for Storm Related Expenses

Reserve for Uncollected Taxes

Less: Appropriation Refunds

A

Budget After

Modification

$ 20,532,827.00

257,086.00

7,647.00

$ 20,797,560.00

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

ARE AN INTEGRAL PART OF THIS STATEMENT

$

$

A-3

10 of 10

Paid or

Charged

18,357,729.77

328,738.01

27,000.00

3,647.00

136,682.87

1,908,458.00

20,762,255.65

596,238.77

20,166,016.88


COUNTY OF MORRIS

2011

TRUST FUNDS

TOWNSHIP OF DENVILLE COMPARATfVEBALANCESHEET-TRUSTFUNDS

B

lof2

December 31

ASSETS

Assessment Trust Fund: Due Sewer Assessment Fund

Animal Control Fund: Cash and Cash Equivalents:

Treasurer

Other Trust Funds: Cash and Cash Equivalents Due Animal Control Fund

TOTAL ASSETS

LIABILITIES, RESERVES AND FUND BALANCE

Assessment Trust Fund: Fund Balance

Animal Control Fund: Reserve for Animal Control Expenditures

Due Current Fund Due Other Trust Funds

Ref.

E

B-4

B-4 B

B-1

B-6

A

B

2011

$ 1,321.16 1,321.16

57,188.55 57,188.55

3,302,365.24

3,302,365.24

$ 3,360,874.95

$ 1,321.16 1,321.16

57,167.99 20.56

57,188.55

$

2010

1,321.16 1,321.16

76,496.14 76,496.14

3,754,850.10 27,185.83

3,782,035.93

$ 3,859,853.23

$ 1,321.16 1,321.16

49,310.31

27,185.83 76,496.14

B 20f2

TOWNSHIP OF DENVILLE COMPARATrvEBALANCESHEET-TRUSTFUNDS

December 31

Ref. 2011 LIABILITIES, RESERVES AND FUND BALANCE

Other Trust Funds: Due Current Fund A $ 449,61

Due General Capital Fund C 8,000,00

Special Deposits Developers Deposits - Escrow 234,664,69

Developers Deposits - Affordable Housing 969,825.01 Miscellaneous Deposits 954.04 Planning and Zoning Deposits 55,120.82 Reserve for:

Road Openings Site Engineering Fees Tree Harvesting Unemployment Compensation Insurance 71,649.66 Open Space 884,500.23

Norman Dean Beautification 8,333.00 Denville Beautification 300.00 Community Park 20,000,00 Community Police 13,20 Police Outside Services 22,975,79 Parking Offense Adjudication Act 4,300,94 Accrued Sick & Vacation 400,647,68 Snow Removal 262,897.05

Denville Television 39,823.52

Tsunami Recovery Fund Junior Police Academy 8,466.61 Animal Park Donations 33,523.62 Curtis Property Sewer Assessment Escrow 85,000.00 Recreation - General Activities 107,451.38 Recreation - Cook's Pond Activities 27,214.39 Municipal Alliance Committee 740,00

The Needy Donations 55,514,00 3,302,365.24

TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 3,360,874,95

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF TillS STATEMENT

2010

$ 41.01 301,060.40

65,821.09 220,733.81

1,344,972.69 954.04

36,183.52

10,000.00 31,086.15

1,000.00 38,029.33

626,178.84

8,333,00

20,000,00 13.20

29,264.24 3,822.94

513,141.84 355,952.38

39,823.52 3,670.81 8,432.80

27,185.83

73,251.71 19,127,95

740,00

3,214.83 3,782,035.93

$ 3,859,853.23

Balance December 31, 20 I 0

Balance December 31, 20 II


ASSESSMENT TRUST FUND

STATEMENT OF FUND BALANCE

B

B



B-1

$ 1,321.16

$ 1,321.16

TOWNSHIP OF DENVILLE ASSESSMENT TRUST FUND

STATEMENT OF REVENUE YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

TOWNSHIP OF DENVILLE ASSESSMENT TRUST FUND

STATEMENT OF EXPENDITURES YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE


B-2

B-3

TOWNSHIP OF DENVILLE COUNTY OF MORRIS

2011

GENERAL CAPITAL FUND

TOWNSHIP OF DENVILLE GENERAL CAPITAL FUND


C

December 31,

Cash and Cash Equivalents Grants Receivable:

ASSETS

Department of Transportation New Jersey Block Grant Morris County Open Space Protect our Wetlands, Water and Woods Grant

State of New Jersey Green Acres Grant Due from Current Fund Due from Other Trust Fund Deferred Charges to Future Taxation:

Funded Unfunded

TOTAL ASSETS


Serial Bonds Payable Bond Anticipation Notes Payable Morris County Improvement Authority Leases Payable Due to Current Fund Improvement Authorizations:

Funded Unfunded

Capital Improvement Fund

Reserve: To Pay Debt Service For Police Pistol Range

For Flood Control For Improvement of Drainage Facilities - Savage Road

For Preliminary Expenses - Pedestrian Cross Walk For Senior Center HV AC For Donations - South Shore Park

Fund Balance

TOTAL LIABILITIES, RESERVES AND FUND BALANCE

Ref,

C-2

A. B

C-4

C-8 C-7 C-9

A

C-5 C-5

C-6

C-I

2011

$ 2,731,960,66

20,000,00

344,000,00

8,000,00

10,817,810,20 6,564,472.42

$ 20,486,243,28

$ 505,000,00 6,344,090,00

10,312,810,20

673.39

1,343,113.21 1,545,390,75

216,843,72

95,663.69 1,000.00

15,000.00 20,865.00

10,000.00 3,500.00 1,101.00

71,192,32

$ 20,486,243.28


2010

$ 1,163,463,11

225,000,00

700,000,00 3,000,00

250,000,00 30,000,00

301,060.40

11,730,988,20 7,572,222.42

$ 21,975,734,13

$ 1,020,000,00 6,544,340,00

10,710,988,20

1,204,167,13

1,951,031.16 170,911.08

271,250.00 1,000,00

15,000,00 20,865,00 10,000,00

1,101.00 55,080.56

$ 21,975,734.13

Balance December 31,2010

Increased by:




C

Premium on Bond Anticipation Notes

Decreased by: Appropriation to Finance Improvement Authorizations

Balance December 31, 2011 C



C-l

$ 55,080.56

66,111.76

121,192.32

50,000.00

$ 71,192.32


2011 WATER UTILITY FUND

D

lof2


WATER UTILITY FUND


December 31

Ref. 2011 2010

ASSETS

Operating Fund:

Cash and Cash Equivalents:

Treasurer D-4 $ 1,581,973.09 $ 917,297.27

Change Fund 200.00 200.00

1,582,173.09 917,497.27

Due from Water Utility Capital Fund D 226.41

1,582,399.50 917,497.27

Receivables and Other Assets with Full Reserves:

Consumer Accounts Receivable D-6 192,271.59 119,576.50

Water Liens Receivable D-6A 2,007.14 1,887.14

Inventory D-6B 57,240.13 59,782.95

251,518.86 181,246.59

Total Operating Fund 1,833,918.36 1,098,743.86

Capital Fund:

Cash and Cash Equivalents D-4 664,888.96 464,662.55

Fixed Capital D-7 9,103,258.47 8,929,449.73

Fixed Capital Authorized and Uncompleted D-8 1,762,000.00 1,187,000.00

Total Capital Fund 11,530,147.43 10,581,112.28

TOTAL ASSETS $ 13,364,065.79 $ 11,679,856.14

TOWNSHIP OF DENVILLE WATER UTILITY FUND


D 20f2

December 31

Ref. 2011 LlABILITIES. RESERVES AND FUND BALANCE

Operating Fund: Appropriation Reserves:

Unencumbered D-3; D-9 $ 410,493.14

Encumbered D-3A; D-9 54,068.31 464,561.45

Accounts Payable - Vendors 15,300.00

Accrued Interest on Leases 9,281.61

Water Rent Overpayments 21,978.83 511,121.89

Reserve for Receivables and Inventory D 251,518.86

Fund Balance D-1 1,071,277.61

Total Operating Fund 1,833,918.36

Capital Fund: Morris County Improvement Authority Leases Payable D-15 671,094.90

Improvement Authorizations:

Funded D-10 172,780.69

Unfunded D-lO 590,362.74

Capital Improvement Fund D-11 700,456.32

Due to Water Utility Operating Fund D 226.41 Reserve for Preliminary Costs - Engineering Fees

Deferred Reserve for Amortization D-12 755,000.00

Reserve for Amortization D-12A 8,432,163.57

Fund Balance D-IA 208,062.80

Total Capital Fund 11,530,147.43

TOTAL LlABILITIES, RESERVES AND FUND BALANCE $ 13,364,065.79



2010

$ 228,807.68

90,093.56 318,901.24

9,540.19 6,082.50

334,523.93 181,246.59

582,973.34

1,098,743.86

697,005.90

2,780.69

185,362.74 700,456.32

5,450.00 555,000.00

8,232,443.83

202,612.80

10,581,112.28

$ 11,679,856.14


WATER UTILITY OPERATING FUND

D-l

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE

Year Ended December 31,

Ref. 2011

Revenue and Other Income Realized

Fund Balance Utilized $ 500,000.00

Water Rents 3,132,640.51

Miscellaneous 50,539.50 Nonbudget Revenue 4,870.64 Other Credits to Income:

Unexpended Balance of Appropriation Reserves 151,179.62

Total Income 3,839,230.27

Expenditures

Budget Expenditures:

Operating 2,067,026.00 Capital Improvements 387,000.00

Debt Service 54,273.00 Deferred Charges and Statutory Expenditures 342,627.00

Total Expenditures 2,850,926.00

Excess Revenue/Statutory Excess to Fund Balance 988,304.27

Fund Balance

Balance January I D 582,973.34

1,571,277.61

Decreased by: Utilized by Water Utility Operating Budget 500,000.00

Balance December 31 D $ 1,071,277.61

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF TIDS STATEMENT

2010

$ 905,240.00 2,054,664.97

46,442.27 4,264.37

239,739.57

3,250,351.18

2,130,802.00 291,500.00

52,717.80 310,220.00

2,785,239.80

465,111.38

1,023,101.96 1,488,213.34

905,240.00

$ 582,973.34

Balance December 31, 2010

Increased by:

TOWNSHIP OF DENVILLE WATER UTILITY CAPITAL FUND

STATEMENT OF CAPITAL FUND BALANCE

Reserve for Premlinary Costs Cancelled


Ref.

D

D


D-1A

$ 202,612.80

5,450.00

$ 208,062.80

Fund Balance Anticipated Rents Miscellaneous Revenue Anticipated

Nonbudget Revenue

Analysis of Revnue . Rents

Collections Overpayments Applied

Nonbudget Revenue:

Treasurer: Interest on Investments

Collector: Interest on Investments

TOWNSHIP OF DENVILLE WATER UTILITY OPERATING FUND


Anticipated Realized

$ 500,000.00 $ 500,000.00 2,317,426.00 3,132,640.51

33,500.00 50,539.50 2,850,926.00 3,683,180.01

4,870.64

$ 2,850,926.00 $ 3,688,050.65

$ 3,126,558.01 6,082.50

$ 3,132,640.51

$ 2,061.96

648.06 Due from Water Utility Capital Fund:

Interest on Investments 2,160.62

$ 4,870.64


D·2

Excess

$ 815,214.51 17,039.50

832,254.01 4,870.64

$ 837,124.65

D-3

lof2 TOWNSHIP OF DENVILLE

WATER UTILITY OPERATING FUND STATEMENT OF EXPENDITURES


Appropriation Expended by

Budget Unexpended After Paid or Balance

Budget Modification Charged Reserved Cancelled Operating:

Salaries and Wages $ 714,438.00 $ 714,438.00 $ 659,223.32 $ 55,214.68 Other Expenses 607,110.00 607,110.00 555,408.42 51,701.58

Group Insurance Plan for Employees 395,478.00 395,478.00 387,591.53 7,886.47

Morris County Municipal Utility Authority:

Purchase of Water 350,000.00 350,000.00 270,486.66 79,513.34

Capital hnprovements:

Capital hnprovement Fund 50,000.00 50,000.00 50,000.00 Capital Outlay 337,000.00 337,000.00 144,207.74 192,792.26

Debt Service:

Morris County Municipal Utility Authority -

Loan Principal and Interest 54,273.00 54,273.00 54,273.00 Deferred Charges and Statutory Expenditures:

Deferred Charges to Future Revenue 150,000.00 150,000.00 150,000.00

Statutory Expenditures:

Contribution to:

Public Employees' Retirement System 122,627.00 122,627.00 122,627.00 Unemployment Insurance 65,000.00 65,000.00 41,615.19 23,384.81 Social Security System (O.A.S.L) 5,000.00 5,000.00 5,000.00

$ 2,850,926.00 $ 2,850,926.00 $ 2,440,432.86 $ 410,493.14 $ -0-

Ref. D -o d ...." NW



(Continued)

D-3

20f2

Analysis of Ref. Paid or Charged

Cash Disbursed $ 2,463,284.27 28,362.00 Accrued Interest on Leases

Encwnbrances Payable D 54,068.31 2,545,714.58

Less: Appropriation Refunds 105,281.72


ARE AN INTEGRAL PART OF TIllS STATEMENT

$ 2,440,432.86


2011 SEWER UTILITY FUND

TOWNSHIP OF DENVILLE SEWER UTILITY FUND


Operating Fund: Cash and Cash Equivalents:

Treasurer Due from Sewer Utility Capital Fund Due from Sewer Utility Assessment Fund

Receivables and Other Assets with Full Reserves: Consumer Accounts Receivable Sewer Liens Receivable Inventory

Total Operating Fund

Assessment Trust Fund: Cash and Cash Equivalents Assessments Receivable Due from Sewer Utility Capital Fund

Total Assessment Trust Fund

Capital Fund: Cash and Cash Equivalents Due from New Jersey Environmental Infrastructure Trust

Fixed Capital Fixed Capital Authorized and Uncompleted

Total Capital Fund

E-4

E E

E-6

E-6A E-6B

E-4 E-9

E

E-4

E-I0 E-11

$

E 10f3

December 31, 2011 2010

1,677,877.55 $ 1,848,555.55 225.22 366.89 270.25

1,678,469.66 1,848,825.80

130,374.93 106,589.88 5,550.00 5,250.00

274.54 404.09

136,199.47 112,243.97

1,814,669.13 1,961,069.77

1,632,743.46 514,107.18 1,076,974.63 1,445,336.27

1,500,000.00

2,709,718.09 3,459,443.45

689,382.05 1,948,091.14 540,177.79 771,235.79

23,161,447.05 23,156,197.05 8,085,480.00 8,085,480.00

32,476,486.89 33,961,003.98

TOTAL ASSETS $ 37,000,874.11 $ 39,381,517.20


SEWER UTILITY FUND COMPARATIVE BALANCE SHEET

(Continued)


Operating Fund: Appropriation Reserves:

Unencumbered Encumbered

Total Appropriation Reserves Accounts Payable - Vendors

Accrued Interest on Bonds Accrued Interest on Notes Accrued Interest on Loans Accrued Interest on Leases

Due City of Jersey City

Reserve for Receivables and Inventory

Fund Balance

Total Operating Fund

Assessment Trust Fund: Due to Developer - Italian Chalet

Due to Trust Assessment Fund Due to Sewer Utility Operating Fund Reserve for Assessments and Liens Fund Balance

Total Assessment Trust Fund

E-3;E-12 E-3;E-12

E

E-I

B E

E-!3 E-IA

$

E

20f3

December 31 2011 2010

161,058.90 $ 190,488.46 72,590.25 40,192.03

233,649.15 230,680.49 13,500.00

219.88 609.38 2,663.64 2,175.76

40,640.42 42,712.43 9,281.61 9,540.19

10,766.70 10,766.70 310,721.40 296,484.95 136,199.47 112,243.97

1,367,748.26 1,552,340.85

1,814,669.13 1,961,069.77

21,105.63 21,105.63 1,321.16 1,321.16

366.89 270.25 1,076,974.63 1,445,336.27 1,609,949.78 1,991,410.14

2,709,718.09 3,459,443.45

TOWNSHIP OF DENVILLE SEWER UTILITY FUND


(Continued)

E 30f3

December 31

2011 LIABILITIES, RESERVES AND FUND BALANCE

Capital Fund: Serial Bonds E-I9A $ 45,000,00

Bond Anticipation Notes Payable E-18 887,880,00

Morris County Improvement Authority Leases Payable E-17 671,094,90

Environmental Infrastructure Trust Loan E-17A 5,207,418.53

Improvement Authorizations: Funded E-14 656,560.55

Unfunded E-14 369,942.20

Capital Improvement Fund E-15 154,646,84

Due to Sewer Utility Operating Fund E 225.22 Due to Sewer Utility Assessment Fund E

Reserve for Sewer Improvements 63,222,00

Reserve to Pay Debt Service Reserve for Amortization E-16 22,719,225,87

Deferred Reserve for Amortization E-I6A 1,526,328.47

Fund Balance E-IB 174,942.31

Total Capital Fund 32,476,486,89

TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 37,000,874.11


2010

$ 125,000,00 1,087,880,00

697,005,90

5,494,129.24

628,380,99 522,366,67 129,646,84

1,500,000,00 63,222,00

100,000,00

22,321,354.16 1,126,328.47

165,689,71

33,961,003,98

$ 39,381,517.20

TOWNSHIP OF DENVILLE SEWER UTILITY OPERATING FUND

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN

FUND BALANCE

E-l

Year Ended December 31 2011 2010

Revenue and Other Income Realized

Fund Balance Utilized Sewer Service Charges - Fees

Capacity Charges Reserve to Pay Debt Service Sewer Assessment Fund Balance Nonbudget Revenue Other Credits to Income:

Unexpended Balance of Appropriation Reserves

Total Income

Expenditures

Budget Appropriations:

Operating Capital Improvements Debt Service Deferred Charges and Statutory Expenditures Refund of Prior Year Revenue

Total Expenditures

Excess Revenue/Statutory Excess to Fund Balance

Fund Balance

Balance January 1

Decreased by: Utilized by Sewer Utility Operating Budget

Balance December 31

E

E

$ 609,612.00 1,953,371.21

13,933.00 100,000.00 749,822.00

91,391.15

110,180.68

3,628,310.04

1,978,440.00 95,000.00

748,068.63 381,782.00

3,203,290.63

425,019.41

1,552,340.85 1,977,360.26

609,612.00

$ 1,367,748.26


$ 798,615.00 1,958,284.82

36,852.00

520,000.00 119,167.70

136,554.25

3,569,473.77

1,933,243.00 122,500.00 657,673.09 352,934.00

2,700.00

3,069,050.09

500,423.68

1,850,532.17 2,350,955.85

798,615.00

$ 1,552,340.85


Increased by:

TOWNSHIP OF DENVILLE SEWER ASSESSMENT TRUST FUND


E

Collection of Un pledged Assessments

Decreased by: Anticipated Revenue - Sewer Utility Budget

Balance December 31, 20 II


Increased by:

E


SEWER UTILITY CAPITAL FUND STATEMENT OF FUND BALANCE

Ref.

E

Premium on Bond Anticipation Notes

Balance December 31, 20 II E


E-IA

$ 1,991,410.14

368,361.64 2,359,771.78

749,822.00

$ 1,609,949.78

E-IB

$ 165,689.71

9,252.60

$ 174,942.31



Anticipated Realized

Fund Balance Anticipated $ 609,612,00 $ 609,612,00

Sewer Service Charges 1,750,000.00 1,953,371.21

Sewer Capacity Charges 9,000.00 13,933.00

Reserve to Pay Debt Service 100,000.00 100,000.00

Sewer Assessment Surplus 749,822.00 749,822.00 3,218,434.00 3,426,738.21

Nonbudget Revenue 91,391.15

$ 3,218,434.00 $ 3,518,129.36

Nonbudget Revenue:

Treasurer: Interest on Investments $ 5,367.86

Due from Sewer Assessment Trust Fund:

Interest on Investments 4,025.49

Interest on Assessments 65,027.06 69,052.55

Due from Sewer Utility Capital Fund: Interest on Investments 6,062.61

Collector: Interest on Sewer Rents 9,459.24

Miscellaneous Sewer Fees 1,165.00

Interest on Investments 283.89 10,908.13

$ 91,391.15



E-2

Excess or Deficit*

$ 203,371.21 4,933.00

208,304.21 91,391.15

$ 299,695.36



NOT APPLICABLE


E-2A

E-3 lof2



Appropriation Expended by

Budget Unexpended

After Paid or Balance

Budget Modification Charged Reserved Cancelled Operating:

Salaries and Wages $ 622,293,00 $ 622,293,00 $ 591,989,24 $ 30,303,76 Other Expenses 450,300.00 450,300.00 384,990.52 65,309.48 Group Insurance Plan for Employees 395,478.00 395,478.00 389,549.94 5,928.06 RVRSA (R.S. 40:14A - Contribution) 510,369.00 510,369.00 507,672.10 2,696.90

Capital Improvements: Capital Improvement Fund 25,000,00 25,000.00 25,000.00 Capital Outlay 70,000.00 70,000.00 38,818.89 31,181.11

Debt Service: Payment of Bond Principal 80,000,00 80,000.00 80,000.00 Payment of Bond Anticipation Notes and Capital Notes 200,000.00 200,000.00 200,000.00 Payment of Lease Principal 25,911.00 25,911.00 25,911.00 Interest on Bonds 4,583.00 4,583.00 4,193.50 $ 389.50 Interest on Notes 10,879.00 11,379.00 11,366.88 12.12 Interest on Lease 28,362.00 28,362.00 28,362.00 Environmental Infrastructure Loan - Principal & Interest 413,477.00 412,977.00 398,235.25 14,741.75

Deferred Charges and Statutory Expenditures: Deferred to Future Revenue 200,000.00 200,000.00 200,000.00 Statutory Expenditures:

Contribution to: Public Employee Retirement System 122,627.00 122,627.00 122,627.00 Unemployment Compensation Insurance 5,000.00 5,000.00 5,000.00 Social Security System (O.A.S.L) 54,155.00 54,155.00 28,515.41 25,639.59

Total Sewer Utility Appropriations $ 3,218,434.00 $ 3,218,434.00 $ 3,042,231.73 $ 161,058.90 $ 15,143.37

Ref. E o t:r1 >-+', NW


SEWER UTILITY OPERATING FUND


(Continued)

E-3

2 of2

Aoalysis of Ref, Paid or Charged

Cash Disbursed

Encumbrances Payable

Accrued Interest on Leases Payable

Accrued Interest on Bonds

Accrued Interest on Notes Accrued Interest on Infrastructure Loan

Less: Appropriation Refunds

E



$ 2,834,716,52

72,590,25

28,362,00

4,193,50

11,366,88

111,524,54

3,062,753,69

20,521.96

$ 3,042,231.73



NOT APPLICABLE


E-3A


COUNTY OF MORRIS 2011

PUBLIC ASSISTANCE FUND


PUBLIC ASSISTANCE FUND


December 31,

2011

ASSETS

Cash and Cash Equivalents F-1 $ 37,991.78

TOTAL ASSETS $ 37,991.78

LIABILITIES AND RESERVES

Reserve for Public Assistance $ 37,991.78

TOTAL LIABILITIES AND RESERVES $ 37,991.78



$

$

$

$

F

2010

54,937.43

54,937.43

54,937.43

54,937.43


2011

BOND AND INTEREST FUND

NOT APPLICABLE


COUNTY OF MORRIS

2011

GENERAL FIXED ASSETS ACCOUNT GROUP

(UNAUDITED)


GENERAL FIXED ASSETS ACCOUNT GROUP


(UNAUDITED)

H

December 31,

Land

Buildings and Improvements

Equipment

TOTAL ASSETS

ASSETS

LIABILITIES AND RESERVES

Reserve for Fixed Assets

TOTAL LIABILITIES AND RESERVES

2011

$ 7,898,331.00

4,646,344.00

13,154,334.00

$ 25,699,009.00

$ 25,699,009.00

$ 25,699,009.00



2010

$ 7,898,331.00

4,511,851.00 12,943,302.00

$ 25,353,484.00

$ 25,353,484.00

$ 25,353,484.00

Note 1:

TOWNSHIP OF DENVILLE NOTES TO FINANCIAL STATEMENTS


Summary of Significant Accounting Policies

A. Reporting Entity

1

Except as noted below, the financial statements of the Township of Denville include every board, body, officer or commission supported and maintained wholly or in part by funds appropriated by the Township of Denville, as required by N.J.S. 40A:5-5. Accordingly, the financial statements of the Township of Denville do not include the operations of the municipal library, or volunteer fire and first aid squads.

Governmental Accounting Standards Board ("GASB") Codification of Government Accounting and Financial Reporting Standards. Section 2100, "Defining the Financial Reporting Entity" establishes standards to determine whether a governmental component unit should be included in the fmancial reporting entity. The basic criterion for inclusion or exclusion from the financial reporting entity is the exercise of oversight responsibility over agencies, boards and commissions by the primary government. The exercise of oversight responsibility includes financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. fu addition, certain legally separate tax-exempt entities that meet specific criteria (i.e., benefit of economic resources, access/entitlement to resources and significance) should be included in the fmancial reporting entities. As the financial reporting entity was established in accordance with New Jersey statutes, the requirements ofGASB 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.

B. Description of Funds

The accounting policies of the Township of Denville conform to the accounting principles applicable to municipalities which have been prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"). Such principles and 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 Township of Denville accounts for its fmancial 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 - Receipts, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created.

General Capital Fund - Receipt and disbursement of funds for the acquisition of general capital facilities, other than those acquired in the Current Fund.

Water Utility Operating and Capital Funds - Account for the operations and acquisition of capital facilities of the municipally owned water utility.



Note I: Summary of Significant Accounting Policies (Cont'd)

B. Description of Funds (Cont'd)

2

Sewer Utility Operating and Capital Funds - Account for the operations and acquisition of capital facilities of the municipally owned sewer utility.

Public Assistance Fund - Receipt and disbursement of funds that provide assistance to certain residents of the municipality pursuant to Title 44 of New Jersey statutes.

General Fixed Assets Account Group (Unaudited) - Estimated values of land, buildings and certain fixed assets of the Township as discussed in Note IE - "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 measurement made, regardless of the measurement focus applied.

The accounting policies of the Township of Denville conform to the accounting principles applicable to municipalities which have been prescribed by the Division which differ in certain respects from accounting principles generally accepted in the United States of America applicable to local governmental units. The more significant 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. Federal and state grants are generally recognized on the cash basis, except for certain assistance which is not realized until anticipated in the Township's budget in the Current Fund. Grant revenue is realized in the Capital Funds when improvements are authorized. The amounts recorded as property taxes receivable have not been included in revenue. Amounts that are due to the municipality, which are susceptible of accrual, are recorded as receivables with offSetting reserves in the Current Fund.

Expenditures are generally charged to operations based on budgeted amounts. Exceptions to this general rule include:

I. Accumulated unpaid vacation, sick pay and other employee benefit 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.

TOWNSHIP OF DENVILLE NOTES TO FINANCL\L STATEMENTS


Note 1: Sununary of Significant Accounting Policies (Cont'd)

C.' Basis of Accounting (Cont'd)

3

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.

Had the Township'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 received; inventories would not be reflected as expenditures at the time of purchase and fixed assets purchased by the Utility Funds would be depreciated.

The cash basis of accounting is followed in the Trust and Capital Funds.

D. Deferred Charges to Future Taxation

The General Capital Fund balance sheet includes both funded and unfunded deferred charges. Funded means that bonds have been issued and are being paid off on a serial basis. Unfunded means that the debt has been authorized but not permanently financed. A municipality 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 lease purchase agreements.

E. Other significant accounting policies include:

Management Estimates - The preparation of [mancial statements requires management to make estimates and assumptions that affect the reported amounts of revenue and expenditures/expenses during the period reported. 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 a cost or amortized cost, which approximates market.

Grants Receivable - Grants receivable represent total grant awarded less amounts collected to date. Because the amount of grant funds to be collected are dependent on the total costs eligible for reimbursement, the actual amount collected may be less than the total amounts awarded.

TOWNSHIP OF DENVILLE NOTES TO FINANCLAL STATEMENTS

YEAR ENDED DECEMBER 31. 2011 (Continued)

Note 1: Summary of Significant Accounting Policies (Cont'd)

E. Other significant accounting policies include: (Cont'd)

4

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.

Foreclosed Property - Foreclosed property is recorded in the Current Fund at the assessed valuation when such property was acquired and is fully reserved.

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.

Inventories of Supplies - The costs of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The costs of inventories are not included on the various balance sheets, except for the Utility Operating Funds. The amounts reflected as inventories on the Utility Fund balance sheets are offset by reserves.

General Fixed Assets <Unaudited) - In accordance with Teclmical Accounting Directive No. 85-2, Accounting for Governmental Fixed Assets, as promulgated by the Division of Local Government Services, the Township has developed a fixed assets accounting and reporting system based on the following:

General fixed assets are recorded at cost, except for land which is recorded at estimated historical cost. Infrastructure assets are not included in general fixed assets, as per state directive. Maj or 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. No depreciation has been provided for on general fixed assets. 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, General Capital Fund, and Water Utility and Sewer Utility Funds. The values recorded in the general fixed assets account group and the current and capital funds may not always agree due to differences in valuation methods, timing of recognition of assets, and the recognition of infrastructures. Capital assets are reviewed for impairment.

Property and equipment purchased by the Water and Sewer Utility Funds are recorded in the capital account at cost and are adjusted for disposition and abandonment. The amounts shown do not purport to represent replacement costs or current value. Contributions in aid of construction are not capitalized. The balances in the Reserve for Amortization and Deferred Reserve for Amortization accounts in the Utility Capital Funds represent charges to operations for the costs of acquisitions of property, equipment and improvements. The Utility Funds do not record depreciation on fixed assets.



Note I: Summary of Significant Accounting Policies (Cont'd)

F. BudgetlBudgetary Controls:

5

Annual appropriated budgets are usually prepared in the first quarter for current operating, utility, assessment and Open Space Trust Funds. The budgets are submitted to the governing body and the Division of Local Government Services. Budgets are prepared using the cash basis of accounting. The legal level of budgetary control is established at the line item accounts within each fund. Line item accounts are defmed as the lowest (most specific) level of detail as established pursuant to the flexible chart of accounts referenced in N.J.S.A. 40A. All budget amendments/transfers must be approved by the Township during the year.

Note 2: Long-Tenn Debt

The Local Bond Law governs the issuance of bond to fmance general Township capital expenditures. All bonds are retired in serial installments within the statutory period of usefulness. All bonds issued by the Township are general obligation bonds. The Township's full faith and credit and taxing power has been pledged to the payment of the general obligation debt principal and interest.

Summary of Municipal Debt

December 31 , 2011 2010 2009

Issued General: Bonds, Notes and Leases $ 17,161,900 $ 18,275,328 $ 18,638,588

Water Utility: Bonds, Loans, Notes and Leases 671,095 697,006 720,326

Sewer Utility: Bonds, Loans, Notes and Leases 6,811,394 7,404,016 7,788,918

Total Issued 24,644,389 26,376,350 27,147,832

Authorized but not Issued: General: Bonds and Notes 220,382 1,027,882 320,382

Water Utility: Bonds and Notes 1,007,000 632,000 782,000

Sewer Utility: Bonds and Notes 189,979 389,979 597,959

Total Authorized but not Issued 1,417,361 2,049,861 1,700,341

Note 2:

6 TOWNSHIP OF DENVILLE

NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2011

(Continued)

Long-Term Debt (Cont'd)

Summary of Municipal Debt (Cont'd)

December 31, 2011 2010 2009

Less: General:

Reserve to Pay Debt Service $ 95,664 $ 271,250 $ 429,250 Debt Authorized by Another Public Body

Guaranteed by the Municipality 10,312,810 10,710,988 11,069,348 Water Utility:

Debt Authorized by Another Public Body Guaranteed by the Municipality 671,095 697,006 720,326

Sewer Utility: Reserve to Pay Debt Service 100,000 Debt Authorized by Another Public Body

Guaranteed by the Municipality 671,095 697,006 720,326 11,750,664 12,476,250 12,939,250

Net Bonds, Notes, Loans and Leases Issued and Authorized but not Issued $ 14,311,086 $ 15,523,924 $ 14,972,322

Summary of Statutorv Debt Condition - Annual Debt Statement

The summarized statement of debt condition, which follows, is prepared in accordance with the required method of setting up the Annual Debt Statement as of December 31, 2011 and indicates a statutory net debt of.21 %.

Gross Debt Deductions Net Debt

School District Debt $ 16,052,768 $ 16,052,768 Water and Sewer Utility Debt 8,679,468 8,679,468 General Debt 17,382,283 10,408,474 $ 6,973,809

$ 42,114,519 $ 35,140,710 $ 6,973,809

Net Debt $6,973,809 divided by Equalized Valuation Basis per NJ.S. 40A:2-2 as amended, $3,378,614,831 = .21%.

Even though the $11,655,000 of leases payable with the Morris County Improvement Authority is deductible to arrive at net debt, the amount is guaranteed by the municipality by ad valorem taxes and should be considered when evaluating the municipality's net debt situation.



Note 2: Long-Tenn Debt (Cont'd)

Borrowing Power Under N.J.S. 40A:2-6 As Amended

3-112% Average Equalized Valuation of Real Property

Net Debt

Remaining Borrowing Power

Calculation of "Self-Liquidating Purpose". Water Utilitv Per N.J.S. 40A:2-45

Cash Receipts from Fees, Rents or Other Charges for Year

Deductions: Operating and Maintenance Costs Debt Service

Excess in Revenue

$ 2,409,653 54,273

Calculation of "Self-Liquidating Purpose". Sewer Utility Per N.J.S. 40A:2-45

Cash Receipts from Fees, Rents or Other Charges for Year

Deductions: Operating and Maintenance Costs Debt Service

Excess in Revenue

$ 2,360,222 748,069

7

$ 118,251,519

6,973,809

$ 111,277,710

$ 3,688,051

2,463,926

$ 1,224,125

$ 3,518,129

3,108,291

$ 409,838

Footnote: If there is an "excess in revenue", all such utility debt is deductible. If there is a "deficit", then utility debt is not deductible to the extent of 20 times such deficit amount, or the total amount of debt service for that fund, whichever is less.

The foregoing debt infonnation is in agreement with the Annual Debt Statement filed by the Chief Financial Officer.



Note 2: Long-Tenn Debt (Cont'd) Sununary of Municipal Debt Issued and Outstanding - Prior Year

Fund

Serial Bonds: General Capital Fund Sewer Utility Capital Fund

Bond Anticipation Notes: General Capital Sewer Utility Capital Fund

Loans Payable: Sewer Utility Capital Fund: Infrastructure Trust Loan

Leases Payable: General Capital Fund Water Utility Capital Fund Sewer Utility Capital Fund

Balance 12/3112009

$ 1,535,000 205,000

6,034,240 1,087,880

5,775,713

11,069,348 720,326 720,326

$ 27,147,833

Additions Retirements

$ 515,000 80,000

$ 6,544,340 6,034,240 1,087,880 1,087,880

281,583

358,360 23,320 23,320

$ 7,632,220 $ 8,403,703

Sununary of Municipal Debt Issued and Outstanding - Current Year

Fund

Serial Bonds: General Capital Fund Sewer Utility Capital Fund

Bond Anticipation Notes: General Capital Sewer Utility Capital Fund

Loans Payable: Sewer Utility Capital Fund: Infrastructure Trust Loan

Leases Payable: General Capital Fund Water Utility Capital Fund Sewer Utility Capital Fund

Balance 12/3112010

$ 1,020,000 125,000

6,544,340 1,087,880

5,494,130

10,710,988 697,006 697,006

$ 26,376,350

Additions Retirements

$ 515,000 80,000

$ 7,894,240 8,094,490 887,880 1,087,880

286,711

398,178 25,911 25,911

$ 8,782,120 $ 10,514,081

8

Balance 12/3112010

$ 1,020,000 125,000

6,544,340 1,087,880

5,494,130

10,710,988 697,006 697,006

$ 26,376,350

Balance 12/3112011

$ 505,000 45,000

6,344,090 887,880

5,207,419

10,312,810 671,095 671,095

$ 24,644,389

TOWNSHIP OF DENVILLE NOTES TOFINANCLAL STATEMENTS


Note 2: Long-Term Debt (Cont'd)

9

At December 31, 2011, the Township had capital debt issued and outstanding described as follows:

Final Maturity

06/01112

Final Maturity

10/20/12

Final Maturity

09/01123

Final Maturity

09/01123

Final Maturity

6/112012

Final Maturity

10121112

Final Maturity

08/01126 09/01126

General Capital Serial Bonds Rate

4.50%-4.60%

General Capital Bond Anticipation Notes Rate

1.50%

General Capital Leases Payable Rate

3.00-5.00%

Water Capital Leases Payable Rate

.90-1.82%

Sewer Capital Serial Bonds Rate

5.85%

Sewer Capital Bond Anticipation Notes Rate

1.50%

Sewer Capital Wastewater Treatment Loans Rate

0% 4.00-5.00%

Sewer Capital Leases Payable Rate

$ 505,000

6,344,090

10,312,810

671,095

45,000

887,880

2,437,419 2,770,000

Final Maturity

09/01123 3.00-5.00% 671,095

Total Debt Issued and Outstanding $ 24,644,389



Note 2: Long-Term Debt (Cont'd)

10

Schedule of Annual Debt Service For Principal and Interest for the Next Five Years and Thereafter for Bonded Debt Issued and Outstanding

Calendar Year

2012

General Principal Interest

$ 505,000 $ 11,615

$ 505,000 $ 11,615

Sewer Utility* Principal Interest Total

$ 45,000 $ 1,316 $ 562,931

$ 45,000 $ 1,316 $ 562,931

*Principal on assessment bonds is not included, as it is expected to be paid from assessment collections,

Infrastructure Loans

On September I, 2006, the Township of Denville entered into two loan agreements with the State of New Jersey, acting by and through a New Jersey Department of Environmental Protection Fund (the "Fund"), and the New Jersey Infrastructure Trust (the "Trust"), in the revised aggregate amount of $7,479,246, which represents direct obligations of the Township, The loan agreements were obtained to fmance a portion of the OpenakilKitchel Road sewer improvement project.

At December 31,2011, the Township has borrowed or "drawn down" $5,775,713 for this project. The difference or unexpended proceeds of the "Trust" loan will be retired by New Jersey Infrastructure Trust from funds on hand, and the unexpended proceeds of the "Fund" will be reduced from future debt service payments, Principal payments to the "Fund" will COmmence February I, 2009, and will continue on a semiannual basis over 20 years at zero interest. Principal payments to the "Trust" will commence on September I, 2009, and will continue on a semiannual basis over 20 years, It is expected that interest will be paid from trust bond proceeds on deposit in the capitalized interest account (as defmed in the bond resolution), and earnings thereon on the debt service reserve fund (as defined in the bond resolution) transferred to such capitalized interest account. The Township will nonetheless be responsible for all such interest payments to the extent such trust bond proceeds and interest earnings are not available from the capitalized interest account.

Also, an annual administrative fee of fifteen one hundredths of one percent (,15%) of the initial principal amount of the loan or such lesser amount, if any, as the Trust may approve from time to time is payable on these loans.



Note 2: Long-Tenn Debt (Cont'd)

11

Schedule of Annual Debt Service For Princillal and Interest for the Next Five Years and Thereafter for Loans Issued and Outstanding

Calendar Infrastructure Trust Loan Year Principal Interest Total

2012 $ 290,914 $ 122,588 $ 413,502 2013 303,144 116,088 419,232 2014 306,870 109,088 415,957 2015 318,622 101,838 420,459 2016 321,870 94,088 415,957

2017-2021 1,727,153 396,638 2,123,790 2022-2026 1,938,844 199,369 2,138,213

$ 5,494,128 $ 1,268,531 $ 6,762,660

Morris County Imllrovement Authority Leases Payable

On May 17, 2005, the Township of Denville entered into a lease agreement with the Morris County Improvement Authority in the amount of $13,425,000. The lease was to fund existing ordinances in the amount of $4,964,985, the renovation of the municipal building of $7,730,000 (allocated among the General Capital Fund, Water Utility Capital Fund, and the Sewer Utility Fund), and $730,015 of equipment for the municipal building. Principal payments to the Improvement Authority commenced on February 1, 2007 and will continue on a semiannual basis over 18 years. The following is a schedule of the future minimum lease payments under the capital lease, and the present value of the net minimum lease payments at December 31, 2011.

General Water Utility Sewer Utility Year Capital Fund Capital Fund Capital Fund Total

2012 $ 865,867 $ 56,345 $ 56,345 $ 978,557 2013 1,148,053 74,708 74,708 1,297,469 2014 1,150,363 74,859 74,859 1,300,081 2015 1,146,762 74,624 74,624 1,296,010 2016 1,147,425 74,667 74,667 1,296,759

2017-2021 5,735,400 373,226 373,226 6,481,852 2022-2023 2,291,868 149,141 149,141 2,590,150

13,485,738 877,570 877,570 15,240,878 Less: Amount representing interest (3,172,928) (206,475) (206,475) (3,585,878)

Present value of net minimum lease payments $ 10,312,810 $ 671,095 $ 671,095 $ 11,655,000

TOWNSHIP OF DENVILLE NOTES TO FINANClAL STATEMENTS


Note 3: Fund Balances Appropriated

12

Fund balances at December 31,2011, which was included in the introduced budget as appropriated and as anticipated revenue for the year ending December 31, 2011 budget, were as follows:

Current Fund Water Utility Operating Fund Sewer Utility Operating Fund

$ 2,347,079 500,000 600,00

Also, $825,000 of the $1,609,950 Sewer Assessment Trust Fund balance at December 31, 2011, was anticipated as revenue in the 2012 Sewer Utility Operating Fund budget.

Note 4: Sewer Assessment Fund Balance

During 1995, the Township confirmed (or levied) an $115 million sewer assessment on a sewer extension project which is known as the "Norton Project", Collections of this assessment have been pledged directly to sewer assessment debt, whereby, all collections accrue to sewer assessment fund balance, At December 31, 2011, this fund balance amounts to $1,609,950, A portion of the fund balance will be anticipated in future Sewer Utility budgets in an amount equal to the related debt service principal which matures in each fiscal year,

Note 5: Deferred Charges to be Raised in Succeeding Years

Certain expenditures are required to be deferred to budgets of the succeeding years, At December 31, 2011, the Township had the following deferred charge on the Current Fund balance sheet which needs to be raised in the succeeding year,

Emergency Appropriation

Note 6: School District Taxes

Balance at Dec, 31,2011

$ 257,086,00

Tobe Raised in

2012 Budget

$ 257,086,00

Balance to Succeeding

Years Budgets

$ -0-

Regulations provide for the deferral of not more than 50% of the annual levy when school taxes are raised for a school year and have not been requisitioned by the school district. The Township of Denville has not elected to defer school taxes.

Note 7: Pension Plans

Township employees are enrolled in one of two cost sharing multiple-employer public employee retirement systems: the Public Employees' Retirement System (PERS) or the Police and Firemen's Retirement System (PFRS) of New Jersey or the Defined Contribution Retirement Program (DCRP), The State of New Jersey sponsors and administers the PERS and the PFRS which cover substantially all Township employees. Prudential Financial jointly administrators the DCRP investment with the NJ Division of Pension and Benefits. As a general rule, all full-time employees are eligible to join the PERS or the PFRS. However, if an employee is ineligible to enroll in the PERS or PFRS the employee may be eligible to enroll in the DCRP.

Employees who are members of PERS and retire at a specified age according to the relevant tier category for that employee are entitled to a retirement benefit based upon a formula which takes

Note 7: Pension Plans (Cont'd)



13

"Final average salary" during years of creditable service. Vesting occurs after 8 to 10 years of service. Enrolled PFRS members may retire at age 55 with a minimum of 10 years of service required for vesting. The DCRP provides eligible members with a tax sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. Vesting is immediate upon enrollment for members of the DCRP.

The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available financial reports that include the financial statements and required supplementary information of the above systems. The financial reports may be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey 08625-0295.

The contribution policy is set by New Jersey State Statutes and, in most retirement systems, contributions are required by active members and contributing employers. Plan member and employer contributions may be amended by State of New Jersey legislation. Employee contributions are based on a percentage of 5.5% DCRP and 8.5% for PFRS of employees annual compensation as defined. Effective with the first payroll to be paid on or after October 1, 2011 the employee contributions for PERS went from 5.5% to 6.50% while the employee contributions for PFRS increased to 10.00% from 8.5% of employees' annual compensation, as defined. Employers are required to contribute at an actuarially detennined rate in both funds. The actuarially determined employer contribution includes funding for cost-of- living adjustments and noncontributory death benefits. The DCRP was established July I, 2007, under the provisions of Chapter 92,P.L.2007 and Chapter 103,P.L 2007 and expanded under the provisions of Chapter 89,P.L. 2008. Employee contributions for DCRP are matched by a 3% employer contribution.

Township contributions to PERS amounted to $613,133, $497,297, and $403,485 and $312,133 for 2011, 2010 and 2009, respectively. Township contributions to PFRS amounted to $935,830, $730,525, and $688,395 for 2011,2010 and 2009, respectively

The employee and employer contributions for the DCRP for the years ended December 31 2011, 2010 and 2009 were $4,000, $-0- and $-0- respectively.

Note 8: Selected Tax Rate Information

Property taxes are levied as of January 1 on property values assessed as of the previous calendar year. The tax levy is divided into two billings. The first billing is an estimate of the current year's levy based on the prior year's taxes. The second billing reflects adjustments to the current year's actual levy. The final tax bill is usually mailed on or before June 14th along with the first half estimated tax bills for the subsequent year. The first half estimated taxes are divided into two due dates, February 1 and May 1. The fmal tax bills are also divided into two due dates, August 1 and November 1. A ten-day grace period is usually granted before the taxes are considered delinquent and there is an imposition of interest charges. A penalty may be assessed for any unpaid taxes in excess of $10,000 at December 31 of the current year. Unpaid taxes of the prior years may be placed in lien at a tax sale held after April 1 and through December 10. Unpaid taxes of the current year may be placed in lien at a tax sale held after December 10.



Note 8: Selected Tax Rate Information (Cont'd)

2011 2010 Tax Rate $ 2.772 $

Apportionment of Tax Rate Municipal 0.546 County 0.354 Local School 1.120 Regional High School 0.752

Assessed Valuations 2011 $ 2,280,491,100

2.682

0.547 0.341 1.092 0.702

2010 $ 2,290,419,754 2009

ComQarison of Tax Levies and Collections Currently

A study of this tabulation could indicate a possible trend in future tax levies.

14

2009 $ 2.641

0.527 0.354 1.079 0.681

$ 2,288,704,288

A decrease in the percentage of current collection could be an indication of a probable increase in future tax levies.

Year 2011 2010 2009

Tax Levy $ 63,327,680

61,589,530 60,697,926

Currently Cash Percentage of

Collections Collection $ 62,415,010 98.56%

60,722,891 98.59% 59,829,493 98.57%

Also, increases in future tax levies can also be warranted if revenue sources outside of those directly generated by the municipality, such as federal or state aid, should decline without corresponding decreases in budgeted expenditures.

Note 9: Cash and Cash Equivalents

Cash and cash equivalents include petty cash, 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, which approximates market. The Township 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 Statement No. 40, Governmental Accounting Standards Board Deposit and Investment Risk Disclosures requires disclosure of the level of custodial credit risk assumed by the Township in its cash, cash equivalents and investments, if those items are uninsured or unregistered. Custodial risk is the risk that in the event of bank failure, the government's deposits may not be returned.

Interest Rate Risk - In accordance with its cash management plan, the Township ensures that any deposit or investments 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.

TOWNSlllP OF DENVILLE NOTES TO FINANCIAL STATEMENTS


Note 9: Cash and Cash Equivalents (Cont'd)

15

Credit Risk - The Township limits its investments to those authorized in its cash management plan which are permitted under state statutes as detailed on the following pages.

Deposits:

New Jersey statutes permit the deposit of public funds in institutions located in New Jersey, which are insured by the Federal Deposit Insurance Corporation (FDIC), or by any other agencies of the United States that insure deposits or the State of New Jersey Cash Management Fund.

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 equal5% of the average daily balance of public funds; and

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 Township to purchase the following types of securities:

(I) 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, approved by the Division of Investment of the Department of the Treasury for investment by local units;

(6) Local government investment pools;

(7) Deposits with the State of New Jersey Cash Management Fund; or



Note 9: Cash and Cash Equivalents (Cont'd)

(8) Agreements for the repurchase of fully collateralized securities if:

16

(a) the underlying securities are permitted investments pursuant to paragraphs (I) and (3) above;

(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 statute; and

(e) a master repurchase agreement providing for the custody and security of collateral is executed.

As of December 31, 2011, cash and cash equivalents of the Township of Denville consisted of the following:

Checking Cash on Fund Accounts Hand Totals

Current $ 6,554,225.76 $ 350.00 $ 6,554,575.76 Animal Control Trust 57,188.55 57,188.55 Other Trust 3,302,365.24 3,302,365.24 General Capital 2,731,960.66 2,731,960.66 Water Utility Operating 1,581,973.09 200.00 1,582,173.09 Water Utility Capital 664,888.96 664,888.96 Sewer Utility Operating 1,677,877.55 1,677,877.55 Sewer Utility Assessment 1,632,743.46 1,632,743.46 Sewer Utility Capital 689,382.05 689,382.05 Public Assistance 37,991.78 37,991.78

$ 18,930,597.10 $ 550.00 $ 18,931,147.10

The carrying amount of the Township of Denville's cash and cash equivalents at cost at December 31,2011, was $18,931,147.10 and the bank balance was $17,346,831.23.

Note 10: Accrued Sick and Vacation Benefits

The Township has permitted employees to accrue unused sick pay, which may be taken as time off or paid upon retirement or separation at the employee's current rate upon such termination. It is estimated that the current cost of such unpaid compensation would approximate $1,700,000. This amount is not reported either as an expenditure or liability. However, it is expected that the cost of such unpaid compensation would be included in the Township's budget operating expenditures in the year in which it is used. This amount is partially reserved in the Reserve for Accrued Sick and Vacation of $400,647.68 on the Trust Funds balance sheet at December 31,2011.

Note 11: Risk Management

TOWNSHIP OF DENVILLE NOTES TO FiNANCIAL STATEMENTS


17

The Township is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Health benefits are provided to employees through the State of New Jersey health benefits plan.

The Township of Denville is a member of the Morris County Municipal Joint Insurance Fund. This fund is both an insured and self-administered group of municipalities established for the purpose of providing certain low-cost insurance coverage for member municipalities in order to keep local property taxes at a minimum.

The following coverages are offered by these funds to its members: a.) Workers' Compensation and Employers' Liability b.) Liability Other Than Motor Vehicles c.) Property Damage Other Than Motor Vehicles d.) Motor Vehicle e.) Environmental

As a member of this Fund, the Township could be subject to supplemental assessments in the event of deficiencies. If the assets of the Funds were to be exhausted, members would become responsible for their respective shares of the Fund's liabilities.

This Fund can declare and distribute dividends to members upon approval of the State of New Jersey Department of Banking and Insurance. These distributions are divided amongst the members in the same ratio as their individual assessment relates to the total assessment of the membership body. In accordance with Statement No. 10 of the Government Auditing Standards Board, these distributions are used to reduce the amount recorded for membership expense in the year in which the distribution was declared.

Selected financial information for the Fund as of December 31, 2010 is as follows:

Total Assets

Net Assets

Total Revenue

Total Expenses

Change in Net Assets

Net Assets Distribution to Participating Members

Morris County Municipal Joint Insurance Fund

$ 24,002,469

$ 11,288,204

$ 16,068,417

$ 16,968,383

$ (899,966)

$ -0-

Financial statements for the Fund are available at the offices of the Fund's Executive Director: PERMA Risk Management Services 9 Campus Drive, Suite 16 Parsippany, NJ 07054 (201) 881-7632

TOWNSHIP OF DENVILLE NOTES TO FlNANCIAL STATEMENTS


18

Note II: Risk Management (Cont'd)

Note 12:

Note 13:

New Jersey Unemployment Compensation Insurance

The Township has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan, the Township is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its former employees and charged to its account with the State. The Township is billed quarterly for amounts due to the State.

The following is a sununary of Township and employee contributions, interest earned and reimbursements to the State for benefits paid and the ending balance of the Township's trust fund for the current and previous two years:

State Refund Township of Employee Employee Amount Ending

Year Contributions Contributions Contributions Reimbursed Balance

2009 $ 29,350.00 $ 32,481.10 $ 3,653.57 $ 23,699.47 $ 55,496.96 2010 1,500.00 17,194.45 36,162.08 38,029.33 2011 60,000.00 12,610.44 38,990.11 71,649.66

Contingencies

The Township is periodically involved in lawsuits arising in the normal course of business, including claims for disputes over contract awards. In the opinion of management, the ultimate outcome of these lawsuits will not have a material adverse effect on the Township's financial position as of December 31, 20 II.

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 Township 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 Township officials expect such amounts, if any, to be immaterial.

The Township has been advised that a number of tax appeals have been filed. Potential refunds on tax appeals could be as much as $475,000. A reserve for pending tax appeals in the amount of $475,000 has been recorded as a liability as of December 31,2011.

The Township also is involved with several condemnations/easements as a result of the current Sewer project. The amounts of these settlements will be raised as an amendment to the existing Sewer Utility Capital ordinance.

Open Space Trust Fund

The Township of Denville created an Open Space Trust Fund with a tax levy of $.03 per $100 of assessed valuation in 2003. The funds collected are used to acquire and maintain open space property in the Township. The balance of the Open Space Trust Fund at December 31,2011 and 2010 was $884,500.23 and $626,178.84, respectively.

Note 14:

Note 15:

Note 16:

TOWNSHll' OF DENVILLE NOTES TO FINANCLAL STATEMENTS

YEAR ENDED DECEMBER 31, 2011 (Continned)

Economic Dependency

19

The Township of Denville receives a substantial amount of support from federal and state governments. A significant reduction in the level of support, if this were to occur, may have an effect on the Township'S programs and activities,

Interfund Receivables and Payables

The following interfund balances remained on the balance sheet at December 31, 2011:

Interfund Interfund Fund Receivable Payable

Current Fund $ 1,143.56 Assessment Trust Fund 1,321.16 Animal Control Trust Fund $ 20.56 Other Trust Fund 8,449.61 General Capital Fund 8,000.00 673.39 Water Utility Operating Fund 226.41 Water Utility Capital Fund 226.41 Sewer Utility Operating Fund 592.11 Sewer Utility Assessment Fund 1,688,05 Sewer Utility Capital Fund 225.22

$ 11,283.24 $ 11,283.24

The Current Fund interfund receivable represents the December interest earnings in the Animal Control Trust Fund, Other Trust and General Capital Funds due to the Current Fund, The interfund between the Other Trust Funds and the General Capital Fund represents Open Space funding for an improvement authorization. The interfund between the Water Utility Operating and Water Utility Capital Funds represents the December interest earnings in the Water Utility Capital fund, The interfund between the Sewer Utility Operating Fund and the Sewer Utility Assessment Fund represents the balance of interest on delinquent sewer assessment collections due to the Sewer Utility Operating Fund. The interfund between the Sewer Utility Operating and Sewer Utility Capital Funds represents the December interest earnings in the Sewer Utility Capital fund.

Deferred Compensation Plan

The Township offers its employees a deferred compensation plan created in accordance with Internal Revenue Code 457. This plan, which is administered by Nationwide, permits participants to defer a portion of their salary until future years. Amounts deferred under the plans are not available to employees until termination, retirement, death or unforeseeable emergency.


SUPPLEMENTARY DATA

Name

P. Ted Hussa Thomas Andes Christopher Golinski Gene Fitzpatrick

Donald Kuser Deborah Ann Smith Nicholas Stecky Howard Shaw

Steven Ward Marie Goble Michael Guarino Donna I. Costello

Kathleen Costello

Ann Marie Hopler Leslie Evans Kathleen Ward Fred Semaru

TOWNSHIP OF DENVILLE OFFICIALS IN OFFICE AND SURETY BONDS


Title

Mayor Council President - Ward 1 Council - Ward 2

Council - Ward 3 Council - Ward 4 Council - At Large Council - At Large Council - At Large

Administrator Finance Director (to August 31, 2011) Finance Director (from September 1, 2011) Township Clerk; Assessment Lien Searcher Deputy Township Clerk; Deputy Assessment Lien Searcher Tax Collector; Tax Search Officer Tax Clerk Utilities Collector Township Attorney

$

$

Amount of Bond

* * * *

* 1,000,000,00

* 1,000,000,00

Name of Corporate or

Personal Surety

MCMJIFIMELnF

MCMJIFIMELJIF

Schedule 1 Iof2

r:n g. ~o.

o =",>" N~

Name

Arnold Miniman Lorrie Garabrant Donna Capone Walter Stefanacci Frank Ritchie Virginia Klein Christopher Wagner John Egbert

TOWNSHIP OF DENVILLE OFFICIALS IN OFFICE AND SURETY BONDS

YEAR ENDED DECEMBER3!. 2011

Arnountof Title Bond

Magistrate * Court Administrator * Deputy Court Clerk * Construction Official * Plumbing Inspector * Township Assessor * Police Chief * Public Works Supervisor *

All bonds were examined and were properly executed.

Name of Corporate or Personal Surety

* All employees, who are not specifically bonded, are covered under $50,000 and $950,000 Faithful Performance Bonds provided by the Morris County Municipal Joint Insurance Fund and the Municipal Excess Liability Joint Insurance Fund, respectively.

Schedule I

20f2

en

~ NOoS ""CD N~


COUNTY OF MORRIS

2011

CURRENT FUND


Increased by Receipts:


CURRENT FUND

SCHEDULE OF CASH - TREASURER

A

Tax Collector

Petty Cash

$ 63,562,099.74

Miscellaneous Revenue Not Anticipated

Revenue AccoUv-ts Receivable

Trash Collection Fees Receivable

State of New Jersey-

Senior Citizens' and Veterans' Deductions

Appropriation Refunds

Due State of New Jersey - Building Surcharge Fees

Due General Capital Fund

Due Other Trust Funds

Due Animal Control Trust Fund

Municipal Library

Reserve for Forfeited Bail

Reserve for Garden State Preservation Fund

Unappropriated Grant Reserves:

Alcohol Education and Rehabilition

State Body Armor Replacement Fund

Clean Communities Grant

Kid Safe Pedestrian Crosswalk Grant

Drunk Driving Enforcement Fund

Recycling Tonnage Grant

1,200.00

546,293.97 4,212,307.62

1,669,837.34

158,469.18

596,238.77 23,360.00

4.14 84,662.62

337.93

568,439.80

1,576.28

6,771.00

3,721.49

3,141.43

5,515.55

500.00

10,514.51

59,860.57

A-4

lof2

$ 6,812,570.84

71,514,851.94

78,327,422.78

Decreased by Disbursements: 2011 Appropriations 2010 Appropriation Reserves

Petty Cash Refund of Tax Overpayments

County Taxes Local School District Taxes Regional High School Taxes

Municipal Library


SCHEDULE OF CASH-TREASURER (Continued)

Ref.

$ 18,357,729.77 935,920.56

1,200.00

59,102.93 8,061,858.52

25,539,181.50 17,129,049.14

568,439.80 Due State ofNJ - Building Surcharge Fees 24,183.00

Accounts Payable 20,498.75

Reserve for Pending Tax Appeals 117,683.65

Open Space Tax Levy 685,357.26

Due General Capital Fund 28,101.26

Third Party Tax Title Lien Redemptions 204,263.71

Refund of Tax Sale Premiums 37,700.00 Refund of Miscellaneous Revenue 2,927.17

Balance December 31,2011 A

$

$

A-4

20f2

71,773,197.02

6,554,225.76


Interest and Costs on Taxes

Taxes Receivable

Tax Search Fees and Other Fees

Miscellaneous

2012 Prepaid Taxes

Tax Overpayments

Tax Sale Premiums

Third-Party Lien Redemptions

Decreased by:


CURRENT FUND

SCHEDULE OF CASH - COLLECTOR YEAR ENDED DECEMBER 31, 2011

Amount Turned Over to Treasurer


CURRENT FUND SCHEDULEOFCASH-GRANTFUNDS


NOT APPLICABLE

A-5

$ 175,053.36 62,649,188,79

20,00

7,587,85

329,775.35

32,159,79

162,700,00

205,614,60

63,562,099,74

$ 63,562,099,74

A-6


SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY

Balance Year Dec. 31,2010 2011 Levy

2010 $ 689,689.46 2011 $ 63,327,679.75

Total $ 689,689.46 $ 63,327,679.75

Ref. A

Analysis of 20 II Property Tax Levv Tax Yield:

General Purpose Tax Business Personal Property Taxes Added, Omitted and Rollback Taxes

Tax Levy: Regional High School Taxes Local School District Taxes County Taxes County Open Space Taxes County Added & Omitted Taxes

Local Taxes for Open Space - Due Other Trust Funds

Local Tax for Municipal Purposes Local Taxes for Municipal Library Add: Additional Tax Levied

Collections 2010

$ 298,606.36

$ 298,606.36

$ 7,441,916.14 599,501.36

14,744.61

10,673,648.00 1,134,396.07

109,885.67

2011

$ 688,285.45

61,960,903.34

$ 62,649,188.79

$ 63,074,919.63 140,294.20 112,465.92

$ 63,327,679.75

$ 17,129,049.14 25,539,181.50

8,056,162.11 685,357.26

51,409,750.01

11,917,929.74

$ 63,327,679.75

Senior Citizen & Veteran Taxes

Deductions Cancelled

$ 1,000.00

155,500.00 $ 127,556.98

$ 156,500.00 $ 127,556.98

A-7

Transferred to Tax Balance

Title Liens Dec. 31,2011

$ 404.01 84,090.72 $ 701,022.35

$ 84,494.73 $ 701,022.35

A

~ -..l


Increased by: Transfer from Taxes Receivable

Interest and Costs on Tax Sale



CURRENT FUND SCHEDULE OF TAX TITLE LIENS

A

$

A

84,494.73

87.32

A-8

$ 576,779.57

84,494.73

$ 661,274.30

Clerk:

Licenses: Alcoholic Beverage Other

Fees and Peffili ts Police Department:

Fees and Pennits Planning and Zoning:

Fees and Pennits Fire Official:

Fees and Pennits Tax Search Officer:

Fees and Pennits Municipal Court:

Fines and Costs Interest and Costs on Taxes Parking Meters

Interest on Investments and Deposits

Off-Street Parking Pennits Senior Citizens' Committee Health Officer:

Licenses Fees and Pennits

Unifonn Construction Code Official Reserve to Pay Debt Service Library Note Principal

Library Note Interest Energy Receipts Taxes


CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE

Balance Accrued In Collected by

Dec. 31, 2010 2011 Collector Treasurer

$ 30,566.00 $ 30,566.00 $ 350.00 4,450.00 4,800.00

23.28 5,461.37 5,484.65

7,649.95 7,649.95

35,367.16 35,367.16

36,200.00 36,200.00

20.00 $ 20.00

24,167.41 342,552.63 366,720.04

175,053.36 175,053.36

9,776.55 9,776.55 31,075.88 31,075.88

25,943.00 65,230.00 91,173.00 1,817.35 1,817.35

4,781.60 71,500.34 76,281.94 8,305.00 30,898.67 39,203.67

28,335.55 367,519.00 395,854.55

158,000.00 158,000.00 878,771.44 878,771.44

21,300.00 21,300.00

1,805,216.00 1,805,216.00

Cancelled

A-9 lof2

Balance

Dec. 31, 2011

-0> >+', N'"

Boonton Township Health Service Morris Hills High School SRO Services

Mountain Lakes Court Services Morris Plains Animal Control Services Click It or Ticket Grant

Over the Limit Grant

Atlantic Health Child Passenger Safety Grant Recreation Trails Grant ANJEC Grant - 2010 ANJEC Grant - 2011 Highlands Planning Assistance Grant NACCHO Health Grant Municipal Alliance - 2010

Municipal Alliance - 2011 Clean Communities Bullet Proof Vest Partnership

Ref.


CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEN ABLE

Balance Accrued In Collected by Dec. 31, 2010 2011 Collector Treasurer

$ 12,701.32 $ 12,701.32 48,205.00 48,205.00 55,263.00 55,263.00 12,000.00 12,000.00 4,000.00 4,000.00

$ 5,000.00 5,000.00 500.00

25,000.00

3,000.00

3,000.00 22,683.75 22,683.75

10,000.00 9,760.30 10,974.14 8,334.87

13,062.00 7,489.20 26,464.00 26,464.00

5,148.00 5,148.00

$ 159,063.73 $ 4,268,269.02 $ 175,073.36 $ 4,212,307.62

A

Cancelled

$

$ 2,639.27

$ 2,639.27 $

A-9 20f2

Balance

Dec. 31, 2011

500.00 25,000.00

3,000.00 3,000.00

239.70

5,572.80

37,312.50

A

N

0> '"'" N\O


CURRENT FUND

SCHEDULE OF TRASH COLLECTION FEES RECEIVABLE

Ref.

Balance December 31,2010 A

Increased by:

Billings

Decreased by:

Collections

Balance December 31, 2011 A

A-10

$ 148,698.17

1,714,359.42

1,863,057.59

1,669,837.34

$ 193,220.25

GENERAL GOVERNMENT: Department of Administration:

Salaries and Wages

Other Expenses Division of Human Resources:

Salaries and Wages

Other Expenses Office of the Mayor:

Other Expenses

Clerk's Office: Salaries and Wages Other Expenses

Financial Administration: Salaries and Wages

Other Expenses Audit Services:

Other Expenses

Collection of Taxes: Salaries and Wages Other Expenses

Assessment of Taxes: Salaries and Wages Other Expenses

Legal Services and Costs: Miscellaneous Other Expenses

Engineering Services and Costs: Salaries and Wages

Other Expenses


CURRENT FUND SCHEDULE OF 2010 APPROPRIATION RESERVES


Balance Balance After

Dec. 31, 2010 Modification

$ 3,925.15 $ 5,424.15 20,794.35 10,794.35

258.39 258.39 15,885.77 5,885.77

7,605.54 7,605.54

2,939.29 4,650.29 13,654.29 3,654.29

3,700.54 3,700.54 5,146.28 45,146.28

28,481.00 28,481.00

10,258.41 10,258.41 4,311.63 4,311.63

5,091.22 5,091.22 27,621.86 17,621.86

30,950.55 20,950.55

1,741.74 3,527.74 6,112.99 6,1l2.99

Municipal Land Use Law (N.J.S.A.40:55D-1): Planning Board:

Salaries and Wages 5,308.52 5,308.52 Other Expenses 16,821.68 16,821.68

Zoning Board of Adjustment: Salaries and Wages 1,184.68 1,184.68 Other Expenses 13,726.68 3,726.68

Paid or Charged

$ 5,424.15

4,364.37

240.28

2,696.12

1,668.84

4,650.29 2,971.24

3,700.54

37,650.53

28,481.00

10,258.41 1,841.48

5,091.22

4,695.83

19,578.93

3,508.68 3,407.92

5,308.52

15,853.91

1,155.13 2,381.35

$

A-11

lof5

Balance Lapsed

6,429.98

18.11 3,189.65

5,936.70

683.05

7,495.75

2,470.15

12,926.03

1,371.62

19.06 2,705.07

967.77

29.55

1,345.33


CURRENT FUND

SCHEDULE OF 2010 APPROPRIATION RESERVES

YEAR ENDED DECEMBER 31, 20 II

Balance

Balance After Dec, 31, 2010 Modification

PUBLIC SAFETY:

Municipal Court:

Salaries and Wages $ 4,784,71 $ 4,784,71

Other Expenses 3,548,64 3,548,64

Public Defender:


Police Department:

Salaries and Wages 95,538.24 114,205.24 Other Expenses 55,340,99 40,340,99

Police Dispatch/911:

Salaries and Wages 8,026.33 10,126.33


Office of Emergency Management:

Salaries and Wages 742,21 742,21

Other Expenses 4,451.72 4,451.72 Aid to Volunteer Fire Companies:

Salaries and Wages:

Fire Chief 885,12 885,12

Other Expenses 8,839.54 8,839.54

Aid to Volunteer Ambulance Companies:

Other Expenses 17,695.26 17,695,26

Uniform Fire Safety Act:

Salaries and Wages 2,599,89 2,599,89


Municipal Prosecutor's Office:

Other Expenses 750,00 750,00

PUBLIC WORKS:

Streets and Roads Maintenance:


Other Expenses 15,196,50 15,196.50

Snow Removal:

Salaries and Wages 15,038,29 37,813.29

Other Expenses 53,856,85 118,856,85

Maintenance of Off-S treet

Parking Meters:


Paid or

Charged

$ 4,678,62

1,034,83

114,205,24

30,693,68

10,126.33 4,449,80

500,00

4,07U3

800,00

8,268,83

8,990,81

2,599,89

58,73

24,363.21

14,579,68

37,813,29

118,856,85

5,91

$

A-11

20f5

Balance

Lapsed

106,09

2,513,81

1,000,00

9,647,31

3,990,21

242.21

380.59

85,12

570,71

8,704.45

1,654,17

750,00

616,82

2,491.05


CURRENT FUND



Balance

Balance After

Dec. 31, 2010 Modification

PUBLIC WORKS:

Building and Grounds:

Salaries and Wages $ 25,776.65 $ 25,776.65

Other Expenses 40,058.95 40,058.95

Solid Waste Collections: Salaries and Wages 8,263.38 8,263.38

Other Expenses 114,943.28 84,943.28 Beautification Committee:


Shade Tree


Mosquitollnsect Control

Other Expenses 714.00 714.00

HEALTH AND HUMAN SERVICES:

Division of Health:


Animal Control Services:

Salaries and Wages 736.55 736.55 Other Expenses 1,022.29 1,022.29

Enviromnental Commission: Other Expenses 3,902.50 3,902.50

Administration of Public Assistance:

Salaries and Wages 315.55 840.55


PARKS AND RECREATION FUNCTIONS:

Recreation Services: Salaries and Wages 4,088.74 4,088.74 Other Expenses 17,431.84 17,431.84

Maintenance of Parks:

Salaries and Wages 21,680.35 21,680.35

Other Expenses 23,311.25 23,311.25


Accumulated Leave Compensation:

Salaries and Wages 18,299.41 78,299.41 Senior Citizens' Commission:


Paid or

Charged

$ 25,776.65

29,547.14

8,263.38

71,291.57

2,254.65

26.00

7,865.39

1,114.58

700.00

767.66

2,980.00

800.00

15.45

4,088.74

6,469.03

21,680.35

22,514.61

78,299.41

3,368.00

274.84

$

A-11

30f5

Balance

Lapsed

10,511.81

13,651.71

94.99

1,795.00

688.00

4,522.25

36.55

254.63

922.50

40.55

2,617.95

10,962.81

796.64

192.33

5,583.64


CURRENT FUND

SCHEDULE OF 2010 APPROPRlATION RESERVES


Balance

Balance After Dec, 31, 2010 Modification


Celebration of Public Events:

Other Expenses $ 2,527.47 $ 2,527.47 Community Television:


UTILITY EXPENSE AND BULK PURCHASES:

Electricity 10,694,09 10,694,09

Street Lighting 11,983,77 11,983,77

Telephone 12,159,66 12,159,66

Water 262,21 262,21

Natural Gas 34,746,07 19,573,07

Sewerage Processing 1,683,17 1,683,17

Solid Waste Disposal Costs 73,039.31 53,039,31

Stonn Water Management:

Other Expenses 10,000,00 10,000,00

STATE UNIFORM CONSTRUCTION CODE:

Construction Official:


Other Expenses 12,442,91 7,442,91

Insurance: General Liablitiy 10,742,70 742,70

Employee Group Health 36,618,07 21,618.07

Workman's Compensation 1.00 1.00 Unemployment Insurance 15,000,00

Contingent 1,000,00 1,000,00

DEFERRED CHARGES:

Contribution to:

Social Security System (O,A,S,L) 66,469.41 7,469.41

OPERATIONS EXCLUDED FROM "CAPS"

Interlocal Agreement Boonton Township:

Health Services 3,649,32 3,649,32

PUBLIC & PRIVATE PROGRAMS OFFSET

BY REVENUE:

Drunk Driving Enforcement Fund 2,452,73 2,452,73

Body Annor Replacement Grant 320,00 320,00

Paid or

Charged

$

$ 4,074,37

10,236,05

8,043,05

4,819,26

7,615,81

50,122,73

13,588,96

3,720,09

1,500,00

15,000,00

3,228,11

2,452,73

320,00

A-11

40f5

Balance

Lapsed

2,527.47

4,035,88

458,04

3,940,72

7,340.40

262,21

11,957,26

1,683,17

2,916,58

10,000,00

3,722,82

742,70

20,lI8,07

1.00

1,000,00

7,469.41

421.21


CURRENT FUND


YEAR ENDED DECEMBER 31, 20 II

PUBLIC & PRIVATE PROGRAMS OFFSET

BY REVENUE:

Clean Communities Grant

Reserve for Clean Communities Grant

Municipal Alliance Grant

Municipal Alliance Grant Match

Municipal Alcohol Education & Rehab Grant

Recreational Trails Program Grant

Atlantic Health Child Passenger Safety

ANJECGrant

Federal Body Armor Grant

NJ Division of Highway Safety :

Over the Limit

CAPITAL IMPROVEMENTS

Purchase of Police Equipment

Acquisition of Fire Gear

Improvements to Sr, Citizens Center

Purchase Parks Dept. Equipment

Drainage Projects

Balance

Dec, 31, 2010

$ 8,337.43 4,643,60

1,800,22

3,860,03

5,175,00

11,243,80

45,02

3,000,00

1,726,00

375,00

385,00

7,075,00

7,000,00

1O.Q4

3,233,00

$

Balance

After

Modification

8,337.43 4,643,60

1,800,22

3,860,03

5,175,00

11,243,80

45,02

3,000,00

1,726,00

375,00

385,00

7,075,00

7,000,00

10,04

3,233,00

$

Paid or

Charged

8,335,93

4,643,60

1,800,22

3,760,14

5,175,00

11,243,80

45,02

3,000,00

1,726,00

375,00

6,179,85

7,000,00

2,809,00

$

A-11

50f5

Balance

Lapsed

1.50

99,89

385,00

895,15

10,04

424,00

$ 1,231,361.98 $ 1,231,361.98 $ 1,019,937,74 $ 211,424,24

Analysis of Balance December 31. 2010

Unencumbered

Encumbered

Analysis of Paid or Charged:

Cash Disbursed

Accounts Payable

Transferred to Appropriated Grant Reserves:

Municipal Alcohol Education & Rehab Grant

Atlantic Health Child Passenger Safety

Recreational Trails Program Grant

ANJECGrant

A $ 808,829,22

A 422,532,76

$ 1,231,361.98

$ 935,920,56

68,550,00

5,175,00

45,02

7,247,16

3,000,00

$ 1,019,937,74


SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE

Increased by:

Levy - Calendar Year 20 II

Decreased by: Payments to School District

Increased by: Levy - Calendar Year 2011

Decreased by:


SCHEDULE OF REGIONAL mGH SCHOOL TAXES YEAR ENDED DECEMBER 31. 2011

Payments to School District

A-12

$ 25,539,181.50

$ 25,539,181.50

A-13

$ 17,129,049.14

$ 17,129,049.14


2011 TRUST FUNDS



Animal Control Collector

Due Animal Control Trust Fund Due Current Fund:

Interest Eamed

Open Space Trust Fund:

Interest Earned Open Space Levy

Other Deposits

Developers Deposits - Escrow

Developers Deposits - Affordable Housing Planning and Zoning Deposits

Tsunami Recovery Fund Junior Police Academy

Parking Offense Adjudication Act

Franz Rutgers Beautification Snow Removal

Unemployment Compensation Insurance Recreation General Activities

Recreation Cook's Pond Activities Police Outside Services Accrued Sick and Vacation

The Needy Donations Animal Park Donations

Curtis Property Sewer Assessment Escrow

Denville Beautification Donations

TOWNSHIP OF DENVILLE TRUST FUNDS

SCHEDULE OF CASH-TREASURER

Ref. Animal Control Fund

B $ 76,496.14

$ 49,349.60

20.56

49,370.16 125,866.30

$

B-4

lof2

Other Trust Funds

$ 3,754,850.10

27,185.83

4,161.57

2,197.20 685,357.26

69,451.60 23,885.60

68,288.73

46,049.18

13.38 33.81

478.00

1,000.00 87,307.32

72,610.44

161,474.36 51,316.00

71,805.28 192,088.86

440,160.36 8,106.30

85,000.00

300.00 2,098,271.08

5,853,121.18 -o ttl ...." N-""

Decreased by Disbursements:

Animal Control Expenditures

Due to Other Trust Funds Due Current Fund

Open Space Trust Fund Expenditures Due General Capital Fund

Developers Deposits - Escrow

Developers Deposits - Affordable Housing

Planning and Zoning Deposits Tsunami Recovery Fund

Accrued Sick and Vacation

Unemployment Insurance Payments Franz Rutgers Beautification Snow Removal

Police Outside Services Recreation General Activities

Recreation Cook's Pond Activities

The Needy Donations

Animal Park Donations



TRUST FUNDS


B-4 20f2

Ref. Animal Control Fund Other Trust Funds

$

B

41,491.92

27,185.83

$

$

$ 84,662.62 498,684.67

293,060.40

9,951.00 443,436.41

27,113.19

3,684.19

304,583.02

38,990.11

1,000.00 180,362.65

78,093.73 127,274.69 70,229.56

387,861.19

1,768.51

68,677.75 $ 2,550,755.94

57,188.55 $ 3,302,365.24

tv o O;j '"'>, tv'"

TOWNSHIP OF DENVILLE ~ALCONTROLFUND

SCHEDULE OF CASH - ANIMAL CONTROL COLLECTOR

Ref.

Balance December 31, 2010 B


Dog License Fees - Municipal $ 31,215.60 Dog License Fees - State 3,488.40 Recovery, Late and Other Fees 8,719.00 Cat License Fees 9,415.00

Decreased by Disbursements: Disbursed to Treasurer:

Animal Control Fund 49,349.60 Disbursed to State Board of Health 3,488.40

Balance December 31, 2011 B

B-4A

$ -0-

52,838.00 52,838.00

52,838.00

$ -0-


ASSESSMENT TRUST FUND

ANALYSIS OF CASH


NOT APPLICABLE

B-5

TOWNSHIP OF DENVILLE ANmMAL CONTROL FUND

SCHEDULE OF RESERVE FOR ANmMAL CONTROL FUND EXPENDITURES


Increased by: Dog License Fees Collected Recovery, Late and Other Fees Cat License Fees Collected

Decreased by: Expenditures Under R.S. 4:19-15.11


2009 2010

Ref.

B

B

License Fees Collected

Maximum Allowable Reserve

$ 31,215.60

8,719.00 9,415.00

Amount

$ 49,587.00 40,514.20

$ 90,101.20

B-6

$ 49,310.31

49,349.60 98,659.91

41,491.92

$ 57,167.99


COUNTY OF MORRIS

2011


C-2 TOWNSHIP OF DENVILLE

GENERAL CAPITAL FUND SCHEDULE OF CASH - TREASURER

Ref.

Balance December 31, 2010 C $ 1,163,463.11

Increased by:

Budget Appropriation: Capital Improvement Fund $ 9,900.00 Payment of Bond Anticipation Notes 275,000.00 Payment of Bond Anticipation Notes - Library 878,771.44 Payment of Bond Anticipation Notes - Open Space 100,000.00

Bond Anticipation Notes 7,894,240.00 Due Current Fund:

Interest on Investments 6,223.27 Interfunds Advanced 62,047.00

Capital Fund Balance - Premium on Bond Anticipation Notes 66,111.76 Due from Open Space Trust 354,060.40 State of New Jersey Department of Transportation ·160,419.00 Morris County Open Space 1,495,000.00 Morris County Municipal Utilities Authority 90,000.00 New Jersey Department of Environmental Protection- Green Acres 250,000.00 Protect our Wetlands, Water and Woods Grant 3,000.00 Reserve for Senior Center HV AC 3,500.00

11,648,272.87 12,811,735.98

Decreased by:

Improvement Authorizations 1,765,454.12 Bond Anticipation Notes 8,094,490.00 Due Current Fund:

Reserve to Pay Debt Service Anticipated as Revenue 158,000.00 Return ofInterfund 33,949.88

Reserve to Pay Debt Service 27,881.32

10,079,775.32

Balance December 31, 20 II C $ 2,731,960.66

Balance Bond (Deficit) Anticipation

Dec. 31, 2010 Noles

Fund Balance $ 55,080.56 Capital Improvement Fund 170,911 .08 Stale of New Jersey Grants Receivable:

Department of Transportation (225,000.00) Green Acres (250,000.00) Block Grant

Protect our Wetlands, Water and Woods Grant (3,000.00) Morris County Open Space Grant (700,000.00) Morris County Municipal Utilities Authority Due Current Fund (30,000.00) Due Other Trust Funds (301,060.40)

Reserve for:

Pay Debt Service 271,250.00 Senior Center HV AC Police Pistol Range 1,000.00 Flood Control 15,000.00 Preliminary Costs - Savage Rd. Drainage 20,865.00 Preliminary Costs - Pedestrian Cross Walk 10,000.00 Donations - South Shore Park 1,101.00

~ ImE:rovement DescriE:tion

04-03 Various Capital Improvements 31,857.09 19-03 Acquisition of Fire Truck (220,382.42) 10-04 Various Improvements 80,717.75 16-05 Various Capital Improvements 10,599.29 32-05 Various Equipment $ 440,000.00 14-06 Various Capital Improvements 35,295.01 981,250.00 10-07 Various Capital Improvements 6,150.80 701,290.00 08-08 Various Capital Improvements 98,339.42 1,485,300.00

13-08 Library Improvements 541,228.56

TOWNSHIP OF DENVILLE GENERAL eAPIT AL FUND

ANALYSIS OF CASH

ReceiE:ls Disbursements Bond

Budget Improvement Anticipation AE:E:roE:riation Miscellaneous Authorizations Noles Miscellaneous

$ 66,11 1.76

$ 9,900.00

160,419.00 250,000.00

3,000.00 1,495,000.00

90,000.00 68,270.27 $ 33,949.88

354,060.40

185,881.32

3,500.00

$ 10,599.29

50,000.00 $ 515,000.00 58,000.00 1,039,250.00

167,000.00 868,290.00 100,000.00 405.81 1,585,300.00

878,771.44 1,420,000.00

Transfers

From To

$ 50,000.00 87,636.00 $ 123,668.64

64,581.00 344,000.00 20,000.00

795,000.00

90,000.00

3,647.00 61,000.00

25,000.00 35,295.01

31,857.09

80,717.75

25,000.00 35,295.01

6,150.80

C-3 10f2

Balance (Deficit)

Dec. 31,201 I

$ 71,192.32 216,843.72

(344,000.00) (20,000.00)

673.39 (8,000.00)

95,663.69

3,500.00

1,000.00

15,000.00 20,865.00

10,000.00 1,101.00

(220,382.42)

97,933.61

~

o (l

'"'" NW


ANALYSIS OF CASH

Recei21s Balance Bond (Deficit) Anticipation Budget Improvement

Dec. 31,2010 Noles A22ro2riation Miscellaneous Authorizations

Oed. No. Improvement Description ---IS-OS Acquistion of Property $ 1,000,000.00 $ 1,000,000.00 04-09 Improvements to Field Houses 4,943.00 13-09 Various Capital Improvements 105,599.30 $ 930,050.00 70,958.02 19-10 Various Capital Improvements 356,918.07 929,100.00 270,270.1 7 21-10 Emergency Replacement of Air

Conditioning System - Server Room 33,550.00 32,950.00 26-10 Renovations to the Police Department 42,500.00 1,615,000.00 42,728.76 33-10 Lighting and HVAC Energy Updates 66,019.79 01-11 Acquistion of Property 02-11 Acquistion of Property OS-II Various Capital Improvements 812,250.00 271,522.28 II-II Field House Improvements

$ 1,163,463.1 I $ 7,894,240.00 $ 1,263,671.44 $ 2,490,361.43 $ 1,765,454.12

Disbursements Transfers Bond

Anticipation Noles Miscellaneous From To

$ 4,943.00

$ 930,050.00 929,100.00 64,581.00

807,500.00 $ 68,533.00

450,000.00 840,000.00 42,750.00 50,000.00

$ 8,094,490.00 $ 219,831.20 $ 1,699,827.65 $ 1,699,827.65

C-3 20f2

Balance

(Deficit) Dec. 31, 2011

$ 34,641.28 22,066.90

600.00 807,271.24

2,513.21 450,000.00 840,000.00 583,477.72

__ 5_0,000.00

$ 2,731,960.66

tv o () ....."

NVJ

Ord. No.

19-03 32-05 14-06 10-07 08-08 13-08 13-09 19-10 26-10 08-11


GENERAL CAPITAL FUND SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED

Balance 2011 Improvement Description Dec. 31,2010 Authorizations

Acquisition of Fire Truck $ 220,382.42 Various Equipment 515,000.00 Various Capital Improvements 1,039,250.00 Various Capital Improvements 868,290.00 Various Capitallmprovements 842,650.00 Library Improvements 1,420,000.00 Various Capital hnprovements 930,050.00 Various Capitallmprovements 929,100.00 Renovations to the Police Department 807,500.00 Various Capilallmprovements $ 812,250.00

$ 7,572,222.42 $ 812,250.00

Ref. C

Budget Appropriations Reserve to Pay Debt Service

Improvement Authorizations - Unfunded Less: Unexpended Proceeds of Bond Anticipation Notes Issued:

Ordinance #08-08 Various Capital Improvements Ordinance # 13-09 Various Capital Improvements Ordinance # 19-1 0 Various Capital Improvements Ordinance #26-10 Renovations 10 the Police Department

Funded by Budget

Appropriation

$ 75,000.00 58,000.00

167,000.00 100,000.00 878,771.44

$ 1,278,771.44

$ 1,253,771.44 25,000.00

$ 1,278,771.44

$

$

Transferred to Reserve to Pay

Cancelled Debt Service

35,295.01 $ 35,295.01

541,228.56

576,523.57 $ 35,295.01

Bond Balance Anticipation

Dec. 31, 2011 Notes

$ 220,382.42 440,000.00 $ 440,000.00 981,250.00 981,250.00 701,290.00 701,290.00 742,650.00 742,650.00

930,050.00 930,050.00 929,100.00 929,100.00

807,500.00 807,500.00

812,250.00 812,250.00

$ 6,564,472.42 $ 6,344,090.00

C

Analysis of Balance December 31, 20 II

~enditures

$ 220,382.42

$ 220,382.42

C-4

Unexpended Improvement

Authorizations

$ -0-

$ 1,545,390.75

$

(97,933.61) (34,641.28) (22,066.90)

(807,271.24) (583,477.72)

-0-

n .),.

C-5 TOWNSHIP OF DENVILLE


SCHEDULE OF IMPROVEMENT AUTHORIZATIONS

2011 Authorizations Deferred

Charges to Oed. Improvement Ordinance Balance December 31, 2010 Other Future Taxation Paider Authorization Balance December 31, 2011 No. Description Date Amount Funded Unfunded Sources - Unfunded Charged Cancelled Funded Unfunded

04-03 Various Capital Improvements 041[5103 $ 764,700.00 $ 3[,857.09 $ 3[,857.09 10-04 Various Improvements 04120104 94,706.62 80,7[7.75 80,7[7.75 [6-05 Various Capital Improvements (MCIA) 05103105 6,9[4,0[5.00 10,59929 $ 10,599.29 [4-06 Various Capital Improvements 051[6106 [,20[,000.00 $ 35,295.0[ 35,295.0[ 10-07 Various Capital Improvements 041[7107 [,390,305.00 6,[50.80 6,[50.80 08-08 Various Capital Improvements 05120108 1,0[7,000.00 98,339.42 405.8[ $ 97,933.6[ 13-08 Library Improvements 08113108 [,600,000.00 54[,228.56 54[,228.56 [8-08 Acquistion of Property 1012[108 [,000,000.00 1,000,000.00 [,000,000.00 04-09 Improvements to Field Houses 03123109 30,000.00 4,943.00 4,943.00 [3-09 Various Capital Improvements 06125109 [,[49,000.00 105,599.30 70,958.02 34,641.28 [9-10 Various Capital Improvements 0610[110 [,203,000.00 356,918.07 270,270.[ 7 64,581.00 22,066.90 2[-10 Emergency Replacement of Air

Conditioning System - Server Room 081[7110 35,000.00 33,550.00 32,950.00 $ 600.00 26-10 Renovations to the Police Department 10105110 850,000.00 42,500.00 807,500.00 42,728.76 807,271.24 33-10 Lighting and HV AC Energy Updates 01/24/1 [ 68,533.00 $ 68,533.00 66,0[9.79 2,513.2[ 0[-1 [ Acquistion of Property 02115111 450,000.00 450,000.00 450,000.00 02-[ [ Acquistion of Property 03101/11 840,000.00 840,000.00 840,000.00 08-11 Various Capital Improvements 041051[ [ 855,000.00 42,750.00 $ 8[2,250.00 271,522.28 583,477.72 ll-[ [ Field House Improvements 071[211 [ 50,000.00 50,000.00 50,000.00

$ 1,204,167.[3 $ [,95[,031.16 $ [,45[,283.00 $ 8[2,250.00 $ [,765,454.[2 $ 764,773.2[ $ [,343,[[3.2[ $ [,545,390.75

Ref. C· C C C

Capital Improvement Fund $ 87,636.00 Capital Fund Balance 50,000.00

New Jersey Block Grant 20,000.00 Reserve for Energy Audit M Due from Current Fund 3,647.00

Morris County Open Space 795,000.00 Green Acres Grant 344,000.00

Morris County Municipal Utilities Authority 90,000.00 Open Space Trust 61,000.00

$ [,451,283.00

Department of Transportation Grant Receivable $ 64,581.00 Capital Improvement Fund 123,668.64

Deferred Cbarges to Future Taxation Unfunded 576.523.57

$ 764,773.2 [

() , V>


fucreased by: Budget Appropriation


GENERAL CAPITAL FUND SCHEDULE OF CAPITAL lMPROVEMENT FUND

Ref.

C

$ 9,900.00 Fully Funded Improvement Authorizations Cancelled 123,668.64

Decreased by: Appropriation to Finance Improvement Authorizations

Balance December 31, 20 II C

C-6

$ 170,911.08

133,568.64 304,479.72

87,636.00

$ 216,843.72

C-7 TOWNSHIP OF DENVILLE GENERAL CAPITAL FUND

SCHEDULE OF BOND ANTICIPATION NOTES

Date of Issue of

Ord. Original Interest Balance Balance No. Improvement Authorization Note Issue Maturity Rate Dec. 31, 2010 Issued Matured Dec. 31, 2011

32-05 Various Equipment 10/25/06 10/21/10 10121/11 l.00% $ 515,000.00 $ 515,000.00 10/20/11 10120112 l.50% $ 440,000.00 $ 440,000.00

14-06 Various Capital Improvements 10/25/06 10/21/10 10121111 l.00% 1,039,250.00 1,039,250.00 10/20111 10/20/12 1.50% 981,250.00 981,250.00

10-07 Various Capital Improvements 10/24/07 10/21110 10/21111 l.00% 868,290.00 868,290.00 10/20/11 10/20/12 l.50% 701,290.00 701,290.00

08-08 Various Capital Improvements 04/09/09 04/08/10 04/08111 l.50% 842,650.00 842,650.00 04/07/11 10/21111 l.55% 742,650.00 742,650.00 10/20111 10/20/12 1.50% 742,650.00 742,650.00

13-08 Library Improvements 04/09/09 04/08/10 04/08/11 l.50% 1,420,000.00 1,420,000.00

13-09 Various Capital Improvements 10/22/09 10/21110 10/21111 l.00% 930,050.00 930,050.00 10/20/11 10/20/12 1.50% 930,050.00 930,050.00

19-10 Various Capital Improvements 10/21110 10/21110 10/21111 l.00% 929,100.00 929,100.00 10/20/11 10/20/12 1.50% 929,100.00 929,100.00

26-10 Renovations to the Police Department 04/08/11 04/08/11 10/21111 1.55% 807,500.00 807,500.00 10/20/11 10/20/12 1.50% 807,500.00 807,500.00

08-11 Various Capital Improvements 10/20/11 10/20111 10/20/12 l.50% 812,250.00 812,250.00

$ 6,544,340.00 $ 7,894,240.00 $ 8,094,490.00 $ 6,344,090.00

Ref. C C

Renewed $ 6,274,490.00 $ 6,274,490.00 Issued for Cash 1,619,750.00 Redeemed 541,228.56 Paid by Budget Appropriation - Library 878,77l.44 Paid by Budget Appropriation - Open Space Trust 100,000.00 Paid by Budget Appropriation 275,000.00 Reserve to Pay Debt Service 25,000.00 n ,

$ 7,894,240.00 $ 8,094,490.00 -l

Purpose

General Improvements

Date of

Amount of

Original Issue Issue

06/01/98 $ 7,415,000.00



SCHEDULE OF GENERAL SERIAL BONDS

Maturities of Bonds

Outstanding Dec. 31, 20 II Interest

Date Amount Rate

06/01/2012 505,000.00 4.60%

Ref.

Paid by Operating Budget

Paid by Open Space Budget

C-8

Balance Balance

Dec. 31,2010 Matured Dec. 31,2011

$ 1,020,000.00 $ 515,000.00 $ 505,000.00

$ 1,020,000.00 $ 515,000.00 $ 505,000.00

C C

$ 360,500.00

154,500.00

$ 515,000.00

<;"1 00

C-9


SCHEDULE OF MORRIS COUNTY IMPROVEMENT AUTHORITY LEASES PAYABLE

Balance Balance

Improvement Description Dec. 31, 2010 Matured Dec. 31, 2011

Municipal Building Renovations and Other Capital Improvements $ 10,710,988.20 $ 398,178.00 $ 10,312,810.20

Ref. C C

SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS OUTSTANDING DECEMBER 31, 2011

Due Interest Lease Lease Balance

Date Rate Interest Principal of Loan

$ 10,312,810.20

02/01112 3.25% $ 213,935.51 10,312,810.20

09/01112 3.25% 213,935.51 $ 437,995.80 9,874,814.40

02/01113 3.30% 206,818.08 9,874,814.40

09/01113 3.30% 206,818.08 734,417.20 9,140,397.20

02/01114 3.40% 194,700.19 9,140,397.20

09/01114 3.40% 194,700.19 760,962.40 8,379,434.80

02/01115 5.00% 181,839.04 8,379,434.80

09/01115 5.00% 181,839.04 783,083.40 7,596,351.40

02/01116 3.70% 162,261.96 7,596,351.40

09/01116 3.70% 162,261.96 822,901.20 6,773,450.20

02/01117 3.75% 147,038.29 6,773,450.20

09/01117 3.75% 147,038.29 853,870.60 5,919,579.60

02/01118 4.25% 131,028.21 5,919,579.60

09/01118 4.25% 131,028.21 884,840.00 5,034,739.60

02/01119 4.25% 112,225.36 5,034,739.60

09/01119 4.25% 112,225.36 924,657.80 4,110,081.80

02/01120 4.50% 92,576.39 4,110,081.80

09/01120 4.50% 92,576.39 960,051.40 3,150,030.40

02/01121 4.50% 70,975.23 3,150,030.40

09/01121 4.50% 70,975.23 1,004,293.40 2,145,737.00

02/01122 4.50% 48,378.63 2,145,737.00

09/01/22 4.50% 48,378.63 1,048,535.40 1,097,201.60

02/01123 4.50% 24,687.04 1,097,201.60

09/01123 4.50% 24,687.04 1,097,201.60 -0-

$ 3,172,927.85 $ 10,312,810.20

Ord. No.

19-03 32-05 14-06 10-07 08-08 13-08 13-09 19-10 26-10 08-11


GENERAL CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED

2011 Funded by Improvement Transferred Balance Improvement Various Authorization to Reserve to Pay

Improvement Description Dec. 3 1,2010 Authorizations Sources Cancelled Debt Service

Acquisition of Fire Truck $ 220,382.42 Various Equipment $ 75,000.00 Various Capital Improvements 58,000.00 $ 35,295.01 $ 35,295.01 Various Capital Improvements 167,000.00 Various Capital Improvements 100,000.00 Library Improvements 878,771.44 541,228.56 Various Capital Improvements Various Capital Improvements Renovations to the Police Department 807,500.00 Various Capital Improvements $ 812,250.00

$ 1,027,882.42 $ 812,250.00 $ 1,278,771.44 $ 576,523.57 $ 35,295.01

Paid by Budget Appropriation $ 878,771.44 Paid by Budget Appropriation - Open Space Trust 275,000.00 Paid by Budget Appropriation - Library 100,000.00 Paid by Reserve to Pay Debt Service 25,000.00

$ 1,278,771.44

C-I0

Bond Bond

Anticipation Anticipation Notes Notes Balance Issued Redeemed Dec. 31, 2011

$ 220,382.42 $ 440,000.00 $ 515,000.00

981,250.00 1,039,250.00

701,290.00 868,290.00 1,485,300.00 1,585,300.00

1,420,000.00 930,050.00 930,050.00 929,100.00 929,100.00

1,615,000.00 807,500.00 812,250.00

$ 7,894,240.00 $ 8,094,490.00 $ 220,382.42

\1 ~

o


COUNTY OF MORRIS

2011

WATER UTILITY FUND


Increased by Receipts: Water Utility Collector Interest on Investments Appropriation Refunds Due Water Utility Capital Fund Due Water Utility Operating Fund:

2011 Budget Appropriations Deferred Charge to Future Revenue Interest on Investments

Decreased by Disbursements:

2011 Budget Appropriations 2010 Appropriation Reserves Accrued Interest on Lease Payment Due Water Utility Operating Fund



WATER UTILITY FUNDS SCHEDULE OF CASH-TREASURER

Ref. Operating

D $

$ 3,199,724.40 2,061.96

105,281.72 1,934.21

2,463,284.27 152,421.62 28,620.58

D $

D-4

Capital

917,297.27 $ 464,662.55

$ 50,000.00 150,000.00

2,160.62

3,309,002.29 202,160.62

4,226,299.56 666,823.17

1,934.21

2,644,326.47 1,934.21

1,581,973.09 $ 664,888.96

tl , .,.


Water Rents

Connection Charges

Other Water Fees

Water Overpayments

Interest on Delinquent Accounts



SCHEDULE OF CASH - COLLECTOR


$ 3,126,558.01

5,000.00

33,483.61

21,978.83

12,055.89

Total Consumer Accounts Receivable $ 3,199,076.34

Interest on Investments 648.06

Decreased by Disbursements: Paid to Treasurer

D-4A

$ 3,199,724.40

$ 3,199,724.40

Balance!

(Deficit) Dec. 31, 2010

Capital Fund Balance $202,612.80 Capital Improvement Fund 700,456.32 Due Water Utility Operating Fund Reserve for Engineering Fees 5,450.00

Ord. No. Improvement Description

15-06 Various Water Main Projects 2,780.69 11-08!06-09 Various Capital Improvements (446,637.26)

09-11 Beaver Brook Main Project

$464,662.55


WATER UTILITY CAPITAL FUND ANALYSIS OF WATER CAPITAL CASH

Receipts Disbursements Budget Improvement

Appropriation Miscellaneous Authorizations Miscellaneous

$ 50,000.00

$ 2,160.62 $ 1,934.21

120,000.00

30,000.00

$ 200,000.00 $ 2,160.62 $ -0- $ 1,934.21

D-5

Balance! Transfers (Deficit)

From To Dec. 31, 2011

$ 5,450.00 $208,062.80 $ 50,000.00 700,456.32

226.41 5,450.00

122,780.69 (416,637.26)

50,000.00 50,000.00

$ 55,450.00 $ 55,450.00 $664,888.96

tl , V>

Balance

Dec. 31, 2010

Water Rents $ 119,576.50 $ Miscellaneous

$ 119,576.50 $

Ref. D

Miscellaneous:


SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE

2011 Overpayments Charges Collections Applied

3,205,455.60 $ 3,126,558.01 $ 6,082.50 50,539.50 50,539.50

3,255,995.10 $ 3,177,097.51 $ 6,082.50

Sprinkler Systems, Fire Hydrant Service and Other Water Fees $ 33,483.61

Water Tap Charges 5,000.00 Interest on Delinquent Rents 12,055.89

$ 50,539.50

D-6

Transferred To Balance

Water Liens Dec. 31, 2011

$ 120.00 $ 192,271.59

$ 120.00 $ 192,271.59

D

t:I , 0..


Increased by:



SCHEDULE OF WATER LIENS RECEIVABLE

Transfer from Consumer Accounts Receivable


D-6A

D $ 1,887.14

120.00

D $ 2,007.14


Decreased by: Adjustment to Physical Inventory

Listing of December 31, 2011



SCHEDULEOF~NTORY

D

D

D-6B

$ 59,782.95

(2,542.82)

$ 57,240.13

Services Tool Shop and Garage Equipment Transmission and Distribution Mains Tank and Well Site Land Tanks and Standpipes Service Pipes and Stops Valves and Valve Boxes Meters and Meter Boxes New Construction Wells Pumping System Land Storage Reservoir Pumping Stations Intake and Supply Mains Water Diversion Rights Distribution System Land Storage Buildings Improvements to Public Works Garage

Hydrants Organizational Expenses Transportation Equipment General Equipment and Improvements

Office Furniture and Equipment Power Operated Equipment Water Pipe Lines Water Treatment Equipment Miscellaneous Equipment & Supplies

TOWNSHIP OF DENVILLE WATER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL

Additions By Balance Budget

Dec. 31, 2010 Capital Outlay

$ 36,048.95 lO,680.63

2,028,099.66 6,047.61

138,531.06 92,562.49 11,239.02

671,798.15 $ 41,772.50 157,830.79 799,951.37

9,593.08 611,702.42 151,771.29

210.00 400.00

1,991.00 lO,338.81 23,928.50 54,858.88

161,739.25 12,411.00 207,727.04

1,853,408.06 31,060.51

48,722.21 261,493.97

89,642.04 119,196.88

Municipal Building Design and Improvements 794,732.00

Vehicles 171,237.09

Water Study 5,523.32

Water Facility Maintenance 96,204.00

Acquisition of Truck Wash Recycling Unit 19,750.00 Meadow Street Water Main 158,882.15

$

Balance

D-7

lof2

Dec. 31, 2011

36,048.95 10,680.63

2,028,099.66

6,047.61 138,531.06 92,562.49 11,239.02

713,570.65 157,830.79 799,951.37

9,593.08 611,702.42 151,771.29

2lO.00 400.00

1,991.00 10,338.81 23,928.50 54,858.88

174,150.25 207,727.04

1,853,408.06 31,060.51 48,722.21

261,493.97 89,642.04

119,196.88 794,732.00 171,237.09

5,523.32 96,204.00 19,750.00

158,882.15

Route 10 Water Main Generator Backhoe

2010 Appropriation Reserves 2011 Appropriations

TOWNSHIP OF DENVILLE WATER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL

Additions By Balance Budget

Dec. 31, 2010 Capital Outlay

$ 114,375.24

$ 39,900.00 52,647.50 5,250.00

$ 8,929,449.73 $ 173,808.74

D $ 29,601.00

144,207.74

$ 173,808.74

$

$

Balance

D-7

20f2

Dec. 31, 2011

114,375.24 39,900.00 57,897.50

9,103,258.47

D

Ord. No.

15-06 1l-08; 06-09

09-ll


SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED

Balance 20ll Improvement Description Dec. 31, 2010 Authorizations

Various Water Main Projects $ 600,000.00 Various Capital Improvements 587,000.00 Beaver Brook Main Proj ect $ 575,000.00

$ 1,187,000.00 $ 575,000.00

D

D-8

Transfer to Balance Fixed Capital Dec. 31, 20ll

$ 600,000.00 587,000.00 575,000.00

$ -0- $ 1,762,000.00

D

o , 00




Balance

Balance After Dec. 31, 2010 Modification

Operating:

Salaries and Wages $ 25,853.24 $ 87,853.24 $ Other Expenses 109,584.84 99,584.84

Gronp Insurance Plan for Employees 2,348.00 2,348.00

Morris County Municipal Utility

Authority - Purchase of Water 117,959.68 55,959.68

Capital Improvements: Capital Outlay 59,233.69 59,233.69

Deferred Charges/Statutory Expenditures:

Statutory Expenditures: Contribution to:

Unemployment Insurance 10,000.00 Social Security System (OASI) 3,921.79 3,921.79

$ 318,901.24 $ 318,901.24 $

Ref. Balance December 3 I, 20 I 0

Unencumbered D $ 228,807.68

Encumbered D 90,093.56

$ 318,901.24

Cash Disbursed $ Accounts Payable

$

D-9

Paid or Balance Charged Lapsed

29,397.00 $ 58,456.24 82,662.26 16,922.58

2,348.00

16,061.36 39,898.32

29,601.00 29,632.69

10,000.00 3,921.79

167,721.62 $ 151,179.62

152,421.62 15,300.00

167,721.62

Ord.

No. Improvement Description

15-06 Various Water Main Projects 11-08; Various Capital 06-09 Improvements 09-11 Beaver Brook Main Project


WATER UTILITY CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS

2011 Authorizations Deferred

Capital Charges to Ordinance Balance Dec. 3 I, 2010 Improvement Future

Date Amount Funded Unfunded Fund Revenue

05116/2006 600,000.00 2,780.69 $ 120,000.00 06110/2008 517,000.00 04/2712009 70,000.00 65,362.74 0611412011 575,000.00 $ 50,000.00 $ 525,000.00

$ 2,780.69 $ 185,362.74 $ 50,000.00 $ 525,000.00

Ref. D D

D-I0

Paid or Balance Dec. 31, 20 I 1 Charged Funded Unfunded

$ 122,780.69

$ 65,362.74 50,000.00 525,000.00

$ -0- $ 172,780.69 $ 590,362.74

D D

tl , -o


Increased by: 2011 Budget Appropriation

Decreased by:


SCHEDULE OF CAPITAL IMPROVEMENT FUND

Ref.

D

Appropriated to Finance Improvement Authorizations

Balance December 31, 2011 D

D-ll

$ 700,456.32

50,000.00 750,456.32

50,000.00

$ 700,456.32

Ord. No.

15-06

11-08; 06-09

09-11


WATER UTILITY CAPITAL FUND

SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION

Date of Balance 2011 Improvement Description Ordinance Dec. 31, 2010 Authorizations

Various Water Main Projects 05/16/2006 $ 480,000.00 Various Capital Improvements 06/10/2008 75,000.00 Beaver Brook Main Project 06/14/2011 $ 50,000.00

$ 555,000.00 $ 50,000.00

Ref. D

D-12

Paid by

Budget Balance Appropriation Dec. 31, 2011

$ 120,000.00 $ 600,000.00

30,000.00 105,000.00

50,000.00

$ 150,000.00 $ 755,000.00

D

tl , ~

N


Increased by:


SCHEDULE OF RESERVE FOR AMORTIZATION

D

Morris County Improvement Authority Leases Paid by Operating Budget $ 25,911.00

173,808.74 Capital Outlay

Balance December 31, 20 II D

D-12A

$ 8,232,443.83

199,719.74

$ 8,432,163.57


SCHEDULE OF BOND ANTICIPATION NOTES YEAR ENDED DECEMBER 31, 2011

NOT APPLICABLE

D-13


SCHEDULE OF WATER CAPITAL SERIAL BONDS YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

D-14

Ord. No.

16-05


D-15

SCHEDULE OF MORRIS COUNTY IMPROVEMENT AUTHORITY LEASES PAYABLE

Balance Balance

Improvement Description Dec. 31, 2010 Matured Dec. 31, 2011

Municipal Building Renovations $ 697,005.90 $ 25,911.00 $ 671,094.90

Ref. D D

SCHEDULE OF PRlNCIP AL AND INTEREST PAYMENTS OUTSTANDING DECEMBER 31, 2011

Due Interest Lease Lease Balance

Date Rate Interest Principal of Loan

02/01112 3.25% $ 13,921.62 $ 671,094.90

09101112 3.25% 13,921.62 $ 28,502.10 642,592.80

02/01113 3.30% 13,458.46 642,592.80

09101113 3.30% 13,458.46 47,791.40 594,801.40

02/01114 3.40% 12,669.90 594,801.40

09101114 3.40% 12,669.90 49,518.80 545,282.60

02/01115 5.00% 11,832.98 545,282.60

09101115 5.00% 11,832.98 50,958.30 494,324.30

02/01116 3.70% 10,559.02 494,324.30

09101116 3.70% 10,559.02 53,549.40 440,774.90

02/01117 3.75% 9,568.36 440,774.90

09101117 3.75% 9,568.36 55,564.70 385,210.20

02/01118 4.25% 8,526.52 385,210.20

09101118 4.25% 8,526.52 57,580.00 327,630.20

02/01119 4.25% 7,302.94 327,630.20

09101119 4.25% 7,302.94 60,171.10 267,459.10

02/01120 4.50% 6,024.31 267,459.10

09101120 4.50% 6,024.31 62,474.30 204,984.80

02/01121 4.50% 4,618.64 204,984.80

09101121 4.50% 4,618.64 65,353.30 139,631.50

02/01122 4.50% 3,148.19 139,631.50

09101/22 4.50% 3,148.19 68,232.30 71,399.20

02/01123 4.50% 1,606.48 71,399.20

09101123 4.50% 1,606.48 71,399.20 -0-

$ 206,474.83 $ 671,094.90

Ord. No.

15-06 11-08; 06-09

09-11


WATER UTILITY CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED

2011 Funded by Balance Improvement Budget

Improvement Description Dec. 31, 2010 Authorizations Appropriation

Various Water Main Projects $ 120,000.00 $ 120,000.00 Various Capital Improvements 512,000.00 30,000.00 Beaver Brook Main Project $ 525,000.00

$ 632,000.00 $ 525,000.00 $ 150,000.00

$

$

D-16

Balance

Dec. 31, 2011

482,000.00 525,000.00

1,007,000.00

tl , -0\


COUNTY OF MORRIS

2011

SEWER UTILITY FUND



Sewer Utility Collector Nonbudget Revenue 20 II Budget Appropriation:

Capital Improvement Fund Deferred Charges to Future Revenue

2011 Appropriation Refunds Improvement Authorizition Refunds Due from New Jersey Environmental

Infrastructure Trust Sewer Assessment Collections Sewer Assessment Interest Due Sewer Operating Fund

Due Sewer Assessment Trust Fund: Interest on Assessments Interest on Investments Fund Balance Anticipated

Due Sewer Utility Capital Fund:

Ref.

E

Reserve to Pay Debt Service Anticipated Interfund Returned

Interest on Investments Fund Balance - Premium on Note Sale Bond Anticipation Notes

TOWNSHIP OF DENVILLE SEWER UTILITY FUNDS

SCHEDULE OF CASH-TREASURER

Operating Assessment Trust

$ 1,978,212.34 5,367.86

20,521.96

65,459.69 3,496.22

749,822.00

100,000.00

5,837.39

$ 1,848,555.55

2,928,717.46 4,777,273.01

$ 368,361.64 65,027.06

4,025.49

1,500,000.00

$ 514,107.18

1,937,414.19 2,451,521.37

Capital

E-4

lof2

$ 1,948,091.14

$ 25,000.00 400,000.00

48,750.00

231,058.00

6,062.61

9,252.60 887,880.00

1,608,003.21 3,556,094.35

~

o tI1 '"'" tv ..

Decreased by Disbursements: 2011 Budget Appropriations

2010 Appropriation Reserves Accrued Interest on Bonds Accrued Interest on Leases Accrued Interest on Notes Accrued Interest on Loan Improvement Authorizations Due Sewer Utility Operating Fund:

Fund Balance Anticipated

Ref.

Reserve to Pay Debt Service Anticipated Assessment Interest Interest on Investments

Due Sewer Utility Assessment Fund: Interfund Returned

Bond Anticipation Notes

Balance December 31, 2011 E

TOWNSHIP OF DENVILLE SEWER UTILITY FUNDS


Operating Assessment Trust

$ 2,834,716.52 106,999.81

4,583.00

28,620.58 10,879.00

113,596.55

$ 3,099,395.46

$ 1,677,877.55

$ 749,822.00

65,459.69 3,496.22

$ 818,777.91

$ 1,632,743.46

E-4 20f2

Capital

$ 172,994.91

100,000.00

5,837.39

1,500,000.00 1,087,880.00

$ 2,866,712.30

$ 689,382.05

N

o t"d >-<>, N.,.


Sewer Rents Capacity Charges Miscellaneous Sewer Fees Interest on Delinquent Accounts

TOWNSHIP OF DENVILLE SEWER UTILITY OPERATING FUND SCHEDULE OF CASH - COLLECTOR YEAR ENDED DECEMBER 31. 2011

$ 1,953,371.21 13,933.00

1,165.00

9,459.24 Total Consumer Accounts Receivable $ 1,977,928.45

Interest on Investments 283.89

Decreased by Disbursements: Paid to Treasurer

E-4A

$ 1,978,212.34

$ 1,978,212.34

Fund Balance

Due Trust Assessment Fund

Due Sewer Utility Operating Fund

Due Sewer Utility Capital Fund

Due Developer - Italian Chalet


SEWER ASSESSMENT TRUST FUND

ANALYSIS OF SEWER ASSESSMENT TRUST CASH

Balance/ Receipts (Deficit) Assessments Assessment

Dec. 31, 2010 Receivable Interest Miscellaneous

$1,991,410.14 $ 368,361.64

1,321.16

270.25 $ 65,027.06 $ 4,025.49 (1,500,000.00) 1,500,000.00

21,105.63

$ 514,107.18 $ 368,361.64 $ 65,027.06 $ 1,504,025.49

E-5

Disbursements Balance/

(Deficit) Miscellaneous Dec. 31,2011

$ 749,822.00 $1,609,949.78

1,321.16

68,955.91 366.89

21,105.63

$ 818,777.91 $1,632,743.46

tp V>

E-5A


SEWER UTILITY CAPITAL FUND

ANALYSIS OF SEWER CAPITAL CASH

Receipts Disbursements Balance! Bond Bond Balance!

(Deficit) Anticipation Budget Anticipation Improvement (Deficit) Dec. 31, 2010 Notes Appropriation Miscellaneous Notes Authorizations Miscellaneous Dec. 31, 2011

Fund Balance $ 165,689.71 $ 9,252.60 $ 174,942.31 Capital Improvement Fund 129,646.84 $ 25,000.00 154,646.84 Due New Jersey Environmental Infrastructure

Loans Receivable (771,235.79) 231,058.00 (540,177.79) Due Sewer Utility Operating Fund 6,062.61 $ 5,837.39 225.22 Due Sewer Utility Assessment Fund 1,500,000.00 1,500,000.00 Reserve for Sewer Improvements 63,222.00 63,222.00 Reserve to Pay Debt Service 100,000.00 100,000.00

Ord.

No. Improvement Description

16-06 Various Sewer Improvements 628,380.99 95,559.00 48,750.00 $ 116,129.44 656,560.55 17-06 Acquisition of Sewer Vehicle (294,420.28) 104,441.00 (189,979.28) 12-09 Various Sewer Improvements 426,807.67 $ 887,880.00 200,000.00 $ 1,087,880.00 56,865.47 369,942.20

$ 1,948,091.14 $ 887,880.00 $ 425,000.00 $ 295,123.21 $ 1,087,880.00 $ 172,994.91 $ 1,605,837.39 $ 689,382.05

tp V>

:>



SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE

Rents Capacity Charges

Miscellaneous

Balance

Dec. 31, 2010

$ 106,589.88

$ 106,589.88

Ref. E

Miscellaneous Revenue Anticipated:

Interest on Sewer Rents

Sewer Tap/Connection Fees

Interest on Investments

Sewer Billings

Levied

$ 1,977,456.26

13,933.00 10,908.13

$ 2,002,297.39

Collections

$ 1,953,371.21

13,933.00

10,908.13

$ 1,978,212.34

$ 9,459.24 1,165.00

283.89

$ 10,908.13

Transferred to Sewer Liens

$ 300.00

$ 300.00

E-6

Balance

Dec. 31,2011

$ 130,374.93

$ 130,374.93

E


Increased by:


SCHEDULE OF SEWER LIENS RECEIVABLE

Transfer from Consumer Accounts Receivable


E-6A

E $ 5,250.00

300.00

E $ 5,550.00


Increased By: Adjustment to Physical Inventory

Listing of December 31, 2011



SCHEDULE OF INVENTORY

E

E

E-6B

$ 404.09

(129.55)

$ 274.54


SCHEDULE OF PROSPECTIVE ASSESSMENTS RAISED BY UTILITY REVENUE FOR THE YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

E-7


SCHEDULE OF UTILITY SHARE OF SEWER ASSESSMENT BONDS ISSUED FOR THE YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

TOWNSIDP OF DENVILLE SEWER ASSESSMENT TRUST FUND

E-S

E-SA

SCHEDULE OF AMOUNT TO BE RAISED BY FUTURE REVENUE FOR CANCELLED ASSESSMENTS FOR THE YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

Ord. Date of No. Improvement Description Confirmation

28-87 Sanitary Sewer Extension - 02/07/95 22-93 Norton Project


SCHEDULE OF ASSESSMENTS RECEIVABLE

Annual Balance Installments Due Dates Dec. 31,2010

20 04/07/95 03/07/96-14 $ 1,445,336.27 $

$ 1,445,336.27 $

Ref. E

E-9

Balance Balance Pledged to

Collected Dec. 31, 2011 Reserve

368,361.64 $ 1,076,974.63 $ 1,076,974.63

368,361.64 $ 1,076,974.63 $ 1,076,974.63

E

::;

Sewer Collection System Sewer Capacity Rights General Equipment and Vehicles Office Furniture and Equipment Pumping Station Equipment Transportation Equipment Meter Chamber Additions and Improvements Engineering Land

TOWNSIDP OF DENVILLE

SEWER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL

Balance Dec. 31, 2010

$ 16,619,844.12 224,384.49 378,301.90

1,020.20 8,981.36

57,244.90 6,200.00

2,080,848.95 217,740.84

44,304.40 Municipal Building Design & Improvements 794,732.00

Truck Wash Recycling Unit 19,750.00

Pumping Stations 708,354.94

Sewer Evaluation Study 222,269.26

Sewer Extension 25,151.91

Refunding Existing Debt 1,400,000.00

Sewer Utility Vehicles 294,420.28

Backhoe 52,647.50 $

$ 23,156,197.05 $

Ref. E

20 I 0 Appropriation Reserves $

E-IO

Additions By Budget- Balance

Capital Outlay Dec. 31,2011

$ 16,619,844.12 224,384.49 378,301.90

1,020.20 8,981.36

57,244.90 6,200.00

2,080,848.95 217,740.84

44,304.40 794,732.00

19,750.00 708,354.94 222,269.26

25,151.91 1,400,000.00

294,420.28 5,250.00 57,897.50

5,250.00 $ 23,161,447.05

E

5,250.00

Ord. No.

16-06 12-09

TOWNSHIP OF DENVILLE SEWER UTILITY CAPITAL FUND

SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED

Balance Improvement Description Dec. 31, 2010

General Improvements: Various Sewer Improvements $ 6,897,600.00 $ Various Sewer Improvements 1,187,880.00

$ 8,085,480.00 $

Ref. E

E-ll


6,897,600.00 1,187,880.00

8,085,480.00

E



SCHEDULE OF 2010 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2011

Balance

Dec. 31, 2010

Balance

After

Modification

Paid or

Charged

Operating:

Salaries and Wages

Other Expenses

Group Insurance Plan for Employees

RVRSA (R.S. 40:14A - Contribution)

Capital Improvements:

Capital Outlay

Statutory Expenditures:

Contribution to:

Unemployment Insurance

Social Security System (OASI)

$ 71,422.38

112,258.28

3,537.00

6.32

37,352.50

6,104.01

$ 84,959.38

92,258.28

3,537.00 6.32

33,815.50

10,000.00

6,104.01

$ 31,116.98

74,132.83

5,250.00

10,000.00

$

E-12

Balance

Lapsed

53,842.40

18,125.45

3,537.00

6.32

28,565.50

6,104.01

$ 230,680.49 $ 230,680.49 $ 120,499.81 $ 110,180.68

Balance December 31. 2010

Unencumbered

Encumbered

E $ 190,488.46

E 40,192.03

$ 230,680.49

Cash Disbursed $ 106,999.81

Accounts Payable 13,500.00

$ 120,499.81

Ordinance Number

28-87122-93


SCHEDULE OF RESERVE FOR ASSESSMENTS AND LIENS

Balance Collections to

Improvement Description Dec. 31, 2010 Fund Balance

Assessments Receivable:

Sewer Extension - Norton Projects $ 1,445,336.27 $ 368,361.64

$ 1,445,336.27 $ 368,361.64

Ref. E

E-l3


$ 1,076,974.63

$ 1,076,974.63

E

Ord. No. Improvement Description

General Improvements:

12-09 Various Sewer Improvements

Local Improvements:

16-06 Various Sewer Improvements

Date


SCHEDULE OF IMPROVEMENT AUTHORIZATIONS

Ordinance Balance December 31, 2010 Amount Funded Unfunded

05/25109 $1,187,880.00 $ 426,807.67

05/16/06 6,897,600.00 $ 628,380.99 95,559.00

$ 628,380.99 $ 522,366.67

Ref. E E

Paid or Charged

$ 56,865.47

67,379.44

$ 124,244.91

Cash Disbursed $ 172,994.91 Less: Refunds (48,750.00)

$ 124,244.91

E-14


Funded Unfunded

$ 369,942.20

$ 656,560.55

$ 656,560.55 $ 369,942.20

E E

t,n -..


Increased by: 20ll Budget Appropriation



SCHEDULE OF CAPITAL IMPROVEMENT FUND

E

E

E-15

$ 129,646.84

25,000.00

$ 154,646.84


SCHEDULE OF RESERVE FOR AMORTIZATION

Balance December 31, 20 I 0 E

Increased by: Serial Bonds Paid by Operating Budget $ 80,000.00 Morris County Improvement Authority Leases

Paid by Operating Budget 25,911.00 New Jersey Environmental Infrastructure Loans

Paid by Operating Budget 286,710.71 Capital Outlay 5,250.00

Balance December 31, 20 II E

E-16

$ 22,321,354.16

397,871.71

$ 22,719,225.87

Ord. No.

16-06 12-09


SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION

Paid Date of Balance By Budget

Improvement Description Ordinance Dec. 31, 2010 Appropriation

Various Sewer Capital Improvements 05/16/06 $1,026,328.47 $ 95,559.00 Various Sewer Improvements 05/25/09 100,000.00 304,441.00

$1,126,328.47 $ 400,000.00

Ref. E

E-l6A

Balance Dec. 31,2011

$1,121,887.47 404,441.00

$1,526,328.47

E

E-17 TOWNSHIP OF DENVILLE

SEWER UTILITY CAPITAL FUND SCHEDULE OF MORRIS COUNTY IMPROVEMENT AUTHORITY LEASES PAYABLE

Ord. Balance Balance No. Improvement Description Dec. 31, 2010 Matured Dec. 31, 2011

16-05 Municipal Building Renovations $ 697,005.90 $ 25,911.00 $ 671,094.90

Ref. E E

SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS OUTSTANDING DECEMBER 31. 2011

Due Interest Lease Lease Balance Date Rate Interest Principal of Loan

02101112 3.25% $ 13,921.62 $ 671,094.90 09/01112 3.25% 13,921.62 $ 28,502.10 642,592.80 02101113 3.30% 13,458.46 642,592.80 09/01113 3.30% 13,458.46 47,791.40 594,801.40 02/01114 3.40% 12,669.90 594,801.40 09/01114 3.40% 12,669.90 49,518.80 545,282.60 02/01115 5.00% 11,832.98 545,282.60 09/01115 5.00% 11,832.98 50,958.30 494,324.30 02/01116 3.70% 10,559.02 494,324.30 09/01116 3.70% 10,559.02 53,549.40 440,774.90 02101117 3.75% 9,568.36 440,774.90 09/01117 3.75% 9,568.36 55,564.70 385,210.20 02/01118 4.25% 8,526.52 385,210.20 09/01118 4.25% 8,526.52 57,580.00 327,630.20 02/01119 4.25% 7,302.94 327,630.20 09/01119 4.25% 7,302.94 60,171.10 267,459.10 02/01120 4.50% 6,024.31 267,459.10 09/01120 4.50% 6,024.31 62,474.30 204,984.80 02/01121 4.50% 4,618.64 204,984.80 09/01121 4.50% 4,618.64 65,353.30 139,631.50 02101122 4.50% 3,148.19 139,631.50 09/01/22 4.50% 3,148.19 68,232.30 71,399.20 02/01123 4.50% 1,606.48 71,399.20 09/01123 4.50% 1,606.48 71,399.20 -0-

$ 206,474.83 $ 671,094.90

Ord.

TOWNSIllP OF DENVILLE SEWER UTILITY CAPITAL FUND

SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOAN PAYABLE

E-17A

10f3

No. Improvement Description Balance

Dec. 31, 2010 Matured Balance

Dec. 31,2011

16-06 Various Sewer Improvements $ 5,494,129.24 $ 286,71 0.71 $ 5,207,418.53

E E

SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOAN PAYABLE - FUND SCHEDULE OF PRlNCIPAL PAYMENTS OUTSTANDING DECEMBER 31. 2011

Balance Year Principal of Loan

$ 2,437,418.53 2/1/2012 $ 39,048.03 2,398,370.50 8/1/2012 121,866.34 2,276,504.16 2/1/2013 36,977.57 2,239,526.59 8/1/2013 126,166.52 2,113,360.07 2/1/2014 34,747.85 2,078,612.22 8/1/2014 127,122.12 1,951,490.10 2/1/2015 32,438.49 1,919,051.61 8/1/2015 131,183.40 1,787,868.21 2/1/2016 29,969.87 1,757,898.34 8/1/2016 131,900.10 1,625,998.24 2/1/2017 27,421.62 1,598,576.62 8/1/2017 135,722.48 1,462,854.14 2/1/2018 25,255.60 1,437,598.54 8/1/2018 136,741.78 1,300,856.76 2/1/2019 23,025.87 1,277,830.89 8/1/2019 140,882.70 1,136,948.19 2/1/2020 20,668.74 1,116,279.45 8/1/2020 141,710.88 974,568.57 2/1/2021 18,247.89 956,320.68 8/1/2021 142,475.36 813,845.32 2/1/2022 15,685.70 798,159.62 8/1/2022 146,283.81 651,875.81 2/1/2023 12,992.12 638,883.69 8/1/2023 149,960.86 488,922.83



E-17A

20f3


(Continued)

SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOAN PAYABLE - FUND

SCHEDULE OF PRINCIPAL PAYMENTS OUTSTANDING DECEMBER 31. 2011

Balance

Year Principal of Loan

$ 488,922.83

2/1/2024 $ 10,081.53 478,841.30

8/1/2024 153,420.91 325,420.39

2/1/2025 6,498.05 318,922.34

8/1/2025 156,208.07 162,714.27

2/1/2026 3,316.71 159,397.56

8/1/2026 159,397.56 -0-

$ 2,437,418.53



E-17A

30f3


(Continued)

SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOAN PAYABLE - TRUST

SCHEDULE OF PRINCIPAL PAYMENTS OUTSTANDING DECEMBER 31. 2011

Year Interest

3/1/2012 $ 61,293.75 9/1/2012 61,293.75 3/1/2013 58,043.76 9/1/2013 58,043.76

3/1/2014 54,543.75

9/1/2014 54,543.75

3/1/2015 50,918.75

9/1/2015 50,918.76

3/1/2016 47,043.76

9/1/2016 47,043.75

3/1/2017 43,043.75 9/1/2017 43,043.75 3/1/2018 39,643.75 9/1/2018 39,643.75 3/1/2019 36,143.75 9/1/2019 36,143.75 3/1/2020 32,443.75

9/1/2020 32,443.75

3/1/2021 28,643.75

9/1/2021 28,643.75

3/1/2022 24,621.88

9/1/2022 24,621.88

3/1/2023 20,393.75 9/1/2023 20,393.75 3/1/2024 15,825.00

9/1/2024 15,825.00

3/1/2025 10,200.00

9/1/2025 10,200.00

3/1/2026 5,206.25

9/1/2026 5,206.25

$ 1,056,018.79

Principal

$ 130,000.00

140,000.00

145,000.00

155,000.00

160,000.00

170,000.00

175,000.00

185,000.00

190,000.00

195,000.00

205,000.00

215,000.00

225,000.00

235,000.00

245,000.00

$ 2,770,000.00

Balance

of Loan

$ 2,770,000.00

2,770,000.00

2,640,000.00

2,640,000.00 2,500,000.00

2,500,000.00

2,355,000.00

2,355,000.00

2,200,000.00

2,200,000.00

2,040,000.00

2,040,000.00

1,870,000.00

1,870,000.00

1,695,000.00

1,695,000.00

1,510,000.00

1,510,000.00

1,320,000.00

1,320,000.00

1,125,000.00

1,125,000.00

920,000.00

920,000.00

705,000.00

705,000.00

480,000.00

480,000.00

245,000.00

245,000.00

-0-

Issue of Ord. Original No. Improvement Authorization Note

12-09 Various Sewer Improvements 10/22/09


SEWER UTILITY CAPITAL FUND SCHEDULE OF BOND ANTICIPATION NOTES

Date of

Issue Maturity

10120/10 10/21111 10/20111 10/21112

Interest

Rate

1.00% 1.50%


$ 1,087,880.00 $

Issued

887,880.00

QQ7 QRO.OO $ 1,087,880.00 $ ~~. ,~. -

E

Matured

$ 1,087,880.00

$ 1,087,880.00

Renewed $ 887,880.00 $ 887,880.00

Paid by Budget Appropriation 200,000.00

$ 887,880.00 $ 1,087,880.00

$

$

E-18


887,880.00

887,880.00

E

tIl , -00


SCHEDULE OF SEWER ASSESSMENT SERIAL BONDS FOR THE YEAR ENDED DECEMBER 31. 2011

NOT APPLICABLE

E-19

Amount of

Date of Original Purpose Issue Issue

Sewer Bonds 06/01192 $ 1,325,000.00



SCHEDULE OF SERIAL BONDS

Maturities of Bonds

Outstanding Dec. 31, 2011 Interest Date Amount Rate

6/1/2012 $ 45,000.00 5.85%

Ref.

Paid by Budget Appropriation

E-I9A

Balance Balance Dec. 31, 2010 Matured Dec. 31,2011

$ 125,000.00 $ 80,000.00 $ 45,000.00

$ 125,000.00 $ 80,000.00 $ 45,000.00

E E

$ 80,000.00

tp ~

~

Ord.

No.

16-06 17-06

12-09



SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED

Improvement Description

General Improvements:

Various Sewer Improvements Acquisition of Sewer Vehicle

Various Sewer Improvements

Balance

Dec. 31, 2010

$ 95,559.00

294,420.28

$ 389,979.28

Funded by

Budget

Appropriation

$ 95,559.00

104,441.00

200,000.00

$ 400,000.00

Bond

Anticipation

Notes

Issued

$ 887,880.00

$ 887,880.00

Bond

Anticipation

Notes

Redeemed

$ 1,087,880.00

$ 1,087,880.00

E-20

Balance

Dec. 31, 2011

$ 189,979.28

$ 189,979.28

~ o


2011 PUBLIC ASSISTANCE FUND


Increased by Receipts: State Aid Transfer from Public Assistance I Transfer from Public Assistance II Donations Interest Earned

Total Receipts and Balances

Decreased by Disbursements: Public Assistance Payments:

Eligible for State Aid: Reported

Supplemental Security Income

TOWNSHIP OF DENVILLE PUBLIC ASSISTANCE FUND


Ref. Total

F $ 54,937.43

73,400.00 30,000.00 10,000.00 3,775.00

227.05

172,339.48

93,538.44

Ineligible Public Assistance Expenses 809.26 Transfer to Public Assistance I 10,000.00 Transfer to Public Assistance II 30,000.00

Total Disbursements 134,347.70

Balance December 31, 2011 F $ 37,991.78

F-I

P.A.T.F. I P.A.T.F. II

$ 51,244.89 $ 3,692.54

73,400.00 30,000.00

10,000.00 170.00 3,605.00 143.62 83.43

61,558.51 110,780.97

93,538.44

809.26 10,000.00

30,000.00

30,809.26 103,538.44

$ 30,749.25 $ 7,242.53


PART II

SINGLE AUDIT



SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED DECEMBER 31. 2011

Grant Federal Pass Through Grant Period Award Grant Amount of Cumulative

Federal Funding Department Program CFDA# Entity ID From To Amount Receipts Expenditures Expenditures

U.S. Department of Justice: Bulletproof Vest 16.607 N/A 01101108 12/31111 4,376.28 $ 1,726.00 $ 4,300.00 Office of Justice Program Partnership Grant 01101111 12/31111 5,148.00 $ 5,148.00 2,347.50 2,347.50

Total Department of Justice 5,148.00 4,073.50 __ 6,647.50

U.S. Department of Environmental Protection (Passed through New Jersey Department Recreation Trails

of Environmental Protection) Program 20.219 N/A 01101110 12/31111 25,000.00 3,996.64 17,752.84

Total Department of Environmental Protection 3,996.64 17,752.84

U.S. Department of Health and Human Sservices: National Association of County and

City Heath Officials NACCHO 93.008 N/A 01101111 12/31111 10,000.00 9,760.30 10,000.00 10,000.00

Total Department of Health and Human Sservices 9,760.30 10,000.00 10,000.00

U.S. Department of Transportation State Highway Safety 20.205 6320-480-078-6320 (Passed through New Jersey AKE-TCAP-6040 01101110 12/31111 160,419.00 160,419.00 160,419.00

Department of Law and Public Safety)

Over the Limit 20.605 100-066-1160

142-YHTS-6010 01101110 12/31111 5,000.00 5,000.00 375.00 5,000.00

Click It or Ticket 20.614 100-066-1160

142-YHTS-6010 01101111 12/31111 4,000.00 4,000.00 4,000.00 4,000.00

Total Department of Transportation 169,419.00 4,375.00 169,419.00

TOTAL FEDERAL AWARDS $ 184,327.30 $ 22,445.14 $ 203,819.34

N/A - Not Available

SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS

-

2


SCHEDULES OF EXPENDITURES QF STATE AWARDS


State Grant Grant

Account Grant Period Award Grant Grant Cumulative State Funding Department State Program Number From To Amount Receipts Expenditures Expenditures

Department of Environmental Protection Clean Communities Program 765-042-4900 01101110 12/31111 $ 26,464.00 $ 12,979.53 $ 26,462.50

-004-178910 01/01110 12/31111 5,801.54 3,043.44 3,043.44

01/01111 12/31111 26,464.00 $ 26,464.00 26,464.00 26,464.00

01101111 12/31112 5,515.55 5,515.55

Environmental Infrastructure 100-042-4860 05116/06 12/31111 6,052,041.00 231,058.00 83,088.00 5,363,893.21

Trust and Fund Program 006-093050

Grcen Acres Grant 533-042-4800

003-852000 01101109 12/31111 250,000.00 250,000.00 250,000.00 250,000.00

Recycling Tonnage Grant 452-042-4900 01/01110 12/31111 64,132.88 64,132.88 64,132.88

001-V42Y 01/01111 12/31111 59,860.57 59,860.57 867.12 867.12

Total Department of Environmental Protection & Energy 572,898.12 440,574.97 5,734,863.15

Department of Health and Senior Services Alcohol, Education, Rehabilitation Trust Fund 760-046-4240-001 01/01111 12/31/11 8,336.68 7,600.00 7,600.00

01101111 12/31112 3,721.49 3,721.49

Total Department of Health and Senior Services 3,721.49 7,600.00 7,600.00

Board of Public Utilities Agency:

NJ Clean Energy Program Energy Audit NlA 06/01110 05/30111 3,647.00 3,647.00 3,647.00

3,647.00 3,647.00

Department of Human Services General Assistance 100-054-7550

Program -121-158010 01/01111 12/31111 93,538.44 73,400.00 93,538.44 93,538.44

Total Department of Human Services 73,400.00 93,538.44 93,538.44

N

3 TOWNSHIP OF DENVILLE

SCHEDULES OF EXPENDITURES OF STATE AWARDS


State Grant Grant

Account Grant Period Award Grant Grant Cumulative State Funding Department State Program Number From To Amount Receipts Expenditures ~enditures

Department of Law and Public Safety Body Annor Replacement 1020-718-066- 01101110 12/31111 $ 1,354.63 $ 320.00 $ 1,354.63 Fund 1020-001-6120 01101110 12/31111 3,180.80 3,180.00 3,180.00

01101111 12/31111 3,141.43 $ 3,141.43

Drunk Driving Enforcement 1110-206- 01101109 12131111 9,808.61 2,971.51 9,808.61

Fund 030225-60 01101109 12131111 11,941.21 10,481.22 10,481.22

01101111 12131111 10,514.51 10,514.51

Total Department of Law & Public Safety 13,655.94 16,952.73 24,824.46

New Jersey Department of Highlands

Water Protection and Planning Council Planning Assistance Grant NIA 01101109 12131110 48,480.00 22,683.75 48,480.00

Total- Department of the Highlands Council 22,683.75 48,480.00

Department of the Treasury Governor's Council on 200-475- 01101110 12131111 12,922.73 8,334.87 1,800.22 12,922.73 Passed through Morris County Alcoholism and Drug Abuse 665120-60 01101111 12131111 13,062.00 7,489.20 13,062.00 13,062.00

Total Department of tile Treasury 15,824.07 14,862.22 25,984.73

TOTAL STATE AWARDS $ 702,183.37 $ 577,175.36 $ 5,938,937.78

Nt A - Not Available

SEE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS

w

Note I.

Note 2.

Note 3.

Note 4.

TOWNSHIP OF DENVILLE NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS


GENERAL

4

The accompanying schedules of expenditures of federal and state awards present the activity of all federal and state award programs of the Township of Denville. The Township of Denville is defined in Note 1 to the Township's financial statements. All federal and state awards received directly from federal and state agencies, as well as federal and state financial assistance passed through other government agencies are included on the schedules of expenditures offederal and state awards.

BASIS OF ACCOUNTING

The accompanying schedules of expenditures of federal and state awards are presented using the cash basis of accoWlting. The information in these schedules is presented in accordance with the requirements of federal OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Therefore, some amounts presented in the schedules may differ from amoWlts presented in, or used in the preparation of, the financial statements.

RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amoWlts reported in the related federal and state fmancial reports.

STATE LOANS OUTSTANDING

The Township of Denville has the following loans outstanding as of December 31, 2011:

New Jersey Environmental Infrastructure Trust Loan $ 5,207,418.53

The Township entered into an agreement with the New Jersey Environmental Infrastructure Trust in November of the 2007 to borrow $6,052,041.00 to finance the OpenakilKitchel Road sewer improvement project. As of December 31, 2011, a total of $5,363,893.21 has been expended by the Township and $540,177.79 is receivable.

ON I S I V 0 eel A LLP Certified Public Accountants & Advisors

Mount Arlington Corporate Center 200 Valley Road, Suite 300

Mt. Arlington, NJ 07856 973-328-1825 I 973-328-0507 Fax

Lawrence Business Center 11 Lawrence Road Newton, NJ 07860

973-383-6699 I 973-383-6555 Fax

Independent Auditors' Report on Internal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements

Perfonned in Accordance with Governmental Auditing Standards

The Honorable Mayor and Members of the Township Committee


We have audited the financial statements of the Township of Denville, in the County of Morris (the "Township") as of and for the years ended December 31, 20 II and 2010, and have issued our report thereon dated April 6, 2012, which indicated that the financial statements have been prepared on an other comprehensive basis of accounting. That report also indicated that the scope of our audit did not include the general fixed assets account group. We conducted our audits 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, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Township's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing our opinion on the effectiveness of the Township's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Township's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the nonnal course of perfonning 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 Township's financial statements will not be prevented, or detected and corrected on a timely basis_

Our consideration of the internal control over fmancial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defmed above. However, we identified a certain deficiency in internal control over financial reporting, described in the accompanying Schedule of Findings and Questioned Costs as Finding 2011-01 that we consider to be a significant deficiency in internal control over financial reporting. 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.

www.nisivoccia.com Independent Member of BKR International

5



Compliance and Other Matters

6

As part of obtaining reasonable assurance about whether the Township'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 fmancial 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. However, we noted certain matters that we reported to management in the comments and recommendations section of this report.

The Township's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. We did not audit the Township's response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of management, the Mayor and Members of the Township Committee, others within the Township and to meet the requirements for filing with the Division of Local Govermnent Services, and federal and state awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.

April 6, 2012 NISIVOCCIA LLP Mount Arlington, New Jersey

Certified Public Accountant Registered Municipal Accountant No. 383

I) N I S I V 0 eel R llP Certified Public Accountants & Advisors

Mount Arlington Corporate Center 200 Valley Road, Suite 300

Mt. Arlington, NJ 07856 973-328-18251973-328-0507 Fax

Lawrence Business Center 11 Lawrence Road Newton, NJ 07860

973-383-6699 I 973-383-6555 Fax

Independent Auditors' Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with

OMB Circular A-133 and New Jersey's OMB Circular NJOMB 04-04

The Honorable Mayor and Members ofthe Township Committee


Compliance

We have audited the compliance of the Township of Denville, in the County of Morris (the "Township") with the types of compliance requirements described in the U.S. Office of Management and Budget (the "OMB") Circular A-J33 Compliance Supplement and the New Jersey State Aid/Grant Compliance Supplement that could have a direct and material effect to its major state program for the year ended December 31,2011. The Township's major state program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to its major state program is the responsibility of the Township's management. Our responsibility is to express an opinion on the Township's compliance based on our audit.

We conducted our audit of compliance 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"); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments and Nonprofit Organizations, and New Jersey's OMB Circular NJOMB 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Those standards, OMB Circular A-133 and New Jersey's OMB Circular NJOMB 04-04 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the Township'S compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Township's compliance with those requirements.

In our opinion, the Township complied, in all material respects, with the requirements referred to above that could have a direct and material effect on the Township's major state program for the year ended December 31,2011.

W'NW.nisivoccia.com Independent Member of BKR International

7

The Honorable Mayor and Members of the Township Committee

Township of Denville Denville, New Jersey Page 2

Internal Control Over Compliance

8

The management of the Township is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal and state programs. In planning and performing our audit, we considered the Township's internal control over compliance with requirements that could have a direct and material effect on a major state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the New Jersey State Aid/Grant Compliance Supplement, but not for the purpose of expressing our opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Township's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal or state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of management, the Mayor and Members of the Township Committee, and to meet the requirements for filing with the Division of Local Govermnent Services, federal and state awarding agencies and pass-through entities, and is not intended to be, and should not be, used by anyone other than these specified parties.

Mount Arlington, New Jersey April 6, 2012

NlSNOCCIA LLP

~ ~elli Registered Municipal Accountant #383 Certified Public Accountant

TOWNSHIP OF DENVILLE SCHEDULE OF FINDINGS AND OUESTIONED COSTS


Summary of Auditors' Results:

9

A qualified report was issued on the Township's financial statements prepared on an other comprehensive basis of accounting. The scope of our audit did not include an audit of the general fixed assets account group, since there was not sufficient evidential matter to support the historical value of general fixed assets.

The audit did not disclose any material weaknesses or significant deficiencies in the internal controls of the Township.

The audit did not disclose any noncompliance which is material in relation to the fmancial statements of the Township.

The audit did not disclose any material weaknesses or significant deficiencies in the internal controls of the Township's major state program.

An unqualified report was issued on the Township's compliance for its major state program.

The audit did not disclose any audit findings which are required to be reported in accordance with New Jersey's OMB Circular NJOMB 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid Payments.

The Township was not subject to the single audit provisions of Federal OMB Circular A-133 for 2011 as grant expenditures were less than the single audit thresholds of $500,000 identified in the Circular.

The Township's major state program for the year ended December 31, 2011 consisted of the following award:

State

Green Acres Grant

Grant Number

533-042-4800-003-852000

Grant Period

Award Amont

01/01109 -12/31111 $ 250,000.00

The threshold for distinguishing Type A and B programs was $300,000.

Budgetary Expenditures

$ 250,000.00

The Township qualified as a "low risk" auditee under the provisions of Section 530 of the Circular.

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 Government Auditing Standards, except as noted on the following page:

Finding 2011-1

TOWNSHIP OF DENVILLE SCHEDULE OF FINDINGS AND OUESTIONED COSTS


10

The Township does not maintain an adequate segregation of duties with respect to collecting and recording functions. Segregation of duties refers to separating those functions that place too much control over a transaction or class of transactions that would enable a person to misappropriate funds and prevent detection within a reasonable period of time. The various departments/offices of the Township are responsible for the issuance of permits and licenses; collection of taxes, permit and license fees; and recording of collections. The Finance Director is responsible for recording transactions, authorizing disbursements, reconciling cash and receivables, and preparing the general ledger. This is due, in part, to the limited number of personnel of the Township and the decentralized nature of governmental collection procedures. Accordingly, management and the Township Committee should be aware of these and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.

Management's Response:

The fmding was evaluated, however due to budgetary constraints no resolution can be made at this time.

Findings and Ouestioned Costs for Federal Awards:

Not Applicable - Grant expenditures were below the single audit threshold.

Findings and Ouestioned Costs for State Awards:

The audit did not disclose any fmdings or questioned costs for state awards as defined in Section 51O(a) of the federal circular and NJ OMB Circular NJOMB 04-04.

TOWNSHIP OF DENVILLE SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

FOR THE YEAR ENDED DECEMBER 31, 2011

11

The prior year finding 2010-1 regarding segregation of duties has not been corrected and is included in the audit for the year ended December 31, 2011.


PARTID

COMMENTS AND RECOMMENDATIONS


TOWNSHIP OF DENVILLE 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:

12

a. "When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a contract year the total swn of $17,500, the contract may be awarded by a purchasing agent when so authorized by ordinance or resolution, as appropriate to the contracting unit, of the governing body of the contracting unit without public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of 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 bid threshold may be up to $25,000. Such authorization may be granted for each contract or by a general delegation of 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, except that contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection (I) of section 5 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 the methods 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 every fifth year beginning in the fifth year after the year in which P.L. 1999, C.440 takes effect, adjust the threshold amount and the higher threshold amount which the governing body is permitted to establish, as set forth in subsection a. of this section, or the threshold amount resulting from any adjustment under this subsection, in direct 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 than June 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall become effective on July I 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 provlSlon 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 January I, 2011 and thereafter the bid threshold in accordance with NJ.S.A. 40A:11-3 is $17,500, and with a qualified purchasing agent the threshold may be up to $36,000.

The governing body of the municipality 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 Township Counsel's opinion should be sought before a commitment is made.


(Continued)

Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:11-4 (Cont'd)

13

The minutes indicated that bids were requested by public advertising per NJ.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:Il-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.

Collection of Interest on Delinquent Taxes and Assessments

The statute provides the method for authorizing interest and the maximum rates to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent.

On January I, 2011, the governing body adopted the following resolution authorizing interest to be charged on delinquent taxes:

"The interest penalty for delinquent taxes to be charged by the Chief Revenue Collector for tax payment delinquencies shall be 8% per annum of the first $1,500 (tax bill) and 18% per annum on any amount in excess of $1,500 payable from tax due dates. A penalty of up to 6% may be charged on any delinquency in excess of $1 0,000 if not paid by the end of the fiscal year."

"No interest shall be charged if payment of any installment is made within ten (1O) days after the date on which same is payable, said ten (10) days to be straight calendar days and ifthe tenth day falls on a Saturday, Sunday or Legal Holiday, then the grace period shall be extended to the next business day. After the ten (10) day "GRACE PERIOD", interest is charged from the due date."

It appears from tests of the Collector's records that interest was collected in accordance with the foregoing resolution.

Delinquent Taxes and Tax Title Liens

The last tax sale was held on December 2,2011, and included all items which were eligible for sale.

The following comparison is made of the number of tax title liens receivable on December 31, of the last three years:

Year

2011 2010 2009

Number of Liens

37 34 35

It is essential to good management that all means provided by statute be utilized to liquidate tax title liens in order to get such properties back on a taxpaying basis. Therefore it is recommended that action be taken to pursue collection of tax title liens.

Management's Response

The Tax Collector is currently reviewing all properties for possible foreclosure during 2012.


(Continued)

Verification of Delinquent Taxes and Other Charges

14

A test verification of delinquent charges and current payments was made in accordance with the regulations of the Division of Local Government Services, consisting of verification notices as follows:

Type

Payments of 20 11 Taxes Payments of 20 1 0 Taxes Payments of Utility Charges Delinquent Taxes Delinquent Utility Charges Tax Title Liens Sewer Assessments

Technical Accounting Directives

Number Mailed

20 20 20 15 60 5 10

The Division of Local Government Services has established three (3) technical accounting directives which are prescribed by the revision of 1987 draft "Requirements of Audit and Accounting". They are as follows:

I. Maintenance of an encumbrance accounting system. 2. Fixed assets accounting and reporting system. 3. General ledger accounting system.

The Township maintains an encumbrance accounting system, a fixed asset accounting and reporting system and a general ledger accounting system.

Municipal Court

The report of the Municipal Court has been forwarded to the Division of Local Government Services and the Township Magistrate under separate cover. Reflected below is a summary of Receipts and Disbursements for the year ended December 31, 2011.

Balance Balance Dec. 31, 2010 Receipts Disbursements Dec. 31, 2011

State of New Jersey $ 28,454.09 $ 338,280.87 $ 344,092.59 $ 22,642.37 County of Morris 10,102.50 146,383.00 144,614.00 11,871.50 Municipality 24,162.41 342,557.63 341,892.91 24,827.13 Municipality - POAA 291.00 5,265.00 4,884.00 672.00 Conditional Discharge 6,100.00 30,345.00 33,995.00 2,450.00 Weights and Measures 139.00 139.00 Transcript Fee 41.00 903.00 903.00 41.00

$ 69,151.00 $ 863,873.50 $ 870,520.50 $ 62,504.00

Board of Health


(Continued)

15

Our review of the records and monthly reports of the Board of Health revealed that the records maintained were not always in agreement with the monthly reconciliations. As a result, additional analysis was required to properly allocate funds between animal control fees, marriage fees, burial fees and other various health licenses, fees and permits, and other miscellaneous items. One summary report is maintained for all of the various types of receipts collected by the Health Department which is cumbersome and error prone. By preparing a detailed separate analysis for a variety of fees collected, the Health Department could ensure that the summary monthly reporting and bank reconciliation are accurate and reflective of all cash receipts of the Health Department.

It is recommended that the Board of Health prepare additional monthly analyses by receipt type to ensure the accuracy of the monthly reports and the bank reconciliations.

Management's Response

Administration will review the procedures with the Health Department to implement some additional summary worksheets to prove the monthly reports and bank reconciliations.

Corrective Action Plan

The Township has initiated a corrective action plan to resolve comments and recommendations from the 2010 audit report. The prior year recommendation regarding segregation of duties has not been resolved and is included in the current year's report.

It is recommended that:

TOWNSHIP OF DENVILLE SUMMARY OF RECOMMENDATIONS

16

1. An adequate segregation of duties be maintained with respect to the recording and treasury functions.

2. Action be taken to pursue collection of tax title liens.

3. The Board of Health prepare additional monthly analyses by receipt type to ensure the accuracy of the monthly reports and the bank reconciliations.

********

township of denville county of morris report of audit

Documents