BOROUGHOFLITTLE FERRY BERGENCOUNTY, NEWJERSEY … · basis ofthe Current Fund for the year ended December 31, 2009 on the basis ofaccounting described in Note 1. In accordance with

BOROUGH OF LITTLE FERRY

BERGEN COUNTY, NEW JERSEY

REPORT OF AUDIT

YEAR ENDED DECEMBER 31,2009

Exhibits

AA-I

A-2A-3BCC-I

D

A-4A-5A-6A-7

A-8A-9A-lOA-llA-12A-13A-14A-15A-16A-17A-18A-19A-20A-21A-22A-23

BOROUGH OF LITTLE FERRYTABLE OF CONTENTS

PART I

Independent Auditors' Report

Comparative Balance Sheets - Regulatory Basis - Current FundComparative Statements of Operations and Changes in Fund Balance -

Regulatory Basis - Current FundStatement ofRevenues - Regulatory Basis - Current FundStatement of Expenditures - Regulatory Basis - Current FundComparative Balance Sheets - Regulatory Basis - Trust FundsComparative Balance Sheets - Regulatory Basis - General Capital FundComparative Statements of Changes in Fund Balance -

Regulatory Basis - General Capital FundComparative Balance Sheets - Regulatory Basis - General Fixed Assets Account Group

Notes to Financial Statements

Current Fund

Statement of Current Cash - TreasurerStatement of Current Cash - CollectorStatement of Grants ReceivableStatement ofDue To State ofNew Jersey Senior Citizens' and

Veterans' DeductionsStatement of Taxes Receivable and Analysis ofProperty Tax LevyStatement ofProperty Acquired for Taxes (At Assessed Valuation)Statement ofDeferred ChargesStatement of Revenue Accounts ReceivableStatement of Special Emergency Notes PayableStatement of 2008 Appropriation ReservesStatement ofMiscellaneous Deposits and ReservesStatement of Encumbrances PayableStatement ofCounty Taxes PayableStatement ofLocal District School TaxesStatement of Reserve for State Tax AppealsStatement ofPrepaid TaxesStatement ofReserve for Grants - UnappropriatedStatement ofReserve for Grants - AppropriatedStatement ofAccounts PayableStatement of Tax Overpayments

1-2

3-4

56-7

8-1415-16

17

1819

20-45

464647

474849495050

51-5354555556575758585959

Exhibits

B-1B-2B-3B-4B-5B-6B-7B-8B-9B-1OB-IIB-12B-13B-14B-15B-16B-17

C-2C-3C-4C-5C-6C-7C-8C-9C-IOC-llC-12C-13C-14C-15C-16


Trust Fund

Statement ofTrust CashStatement ofDue From Current Fund - Other Trust FundStatement of Escrow and Miscellaneous DepositsStatement ofReserve for Animal Control Fund ExpendituresStatement ofDue to State Department ofHealth - Animal Control FundStatement of Due To Current Fund - Animal Control FundStatement of Reserve for POAA - Expenditures - Other Trust FundStatement of Due To General Capital Fund - Other Trust FundStatement ofReserve for Affordable Housing - Other Trust FundStatement ofReserve for Indian Lake Fund - Other Trust FundStatement ofReserve for Municipal Alliance Fund - Other Trust FundStatement ofDue to Community Development Trust Flmd - Other Trust FundStatement ofPayroll Deductions Payable - Other Trust FundStatement ofDue to General Capital Fund - Community Development Trust FundStatement ofReserve for Recreation Fees - Other Trust FundStatement ofReserve for Accumulated Leave Compensation - Other Trust FundStatement ofReserve for Veteran's Park - Other Trust Fund

General Capital Fund

Statement of General Capital Cash - TreasurerAnalysis of General Capital CashStatement ofDue From/To Current FundStatement ofDeferred Charges to Future Taxation - FundedStatement of Deferred Charges to Future Taxation - UnfundedStatement ofGrants/Accounts ReceivableStatement of hnprovement AuthorizationsStatement of Encumbrances/Contracts PayableStatement of Capital hnprovement FundStatement of Due from Community Development Trust FundStatement of Green Acres Loan PayableStatement of Reserve for Payment ofBondsStatement of General Serial BondsStatement of Bond Anticipation NotesStatement ofBonds and Notes Authorized But Not Issued

6061616162626262636363636464646565

66676868

69-707172737374747475

76-7778

Exhibits

Schedule ASchedule B


Part II

Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit ofFinancial Statements Performed inAccordance with Government Auditing Standards

Schedule of Expenditures of Federal AwardsSchedule of Expenditures of State Financial Assistance

Notes to the Schedules of Expenditures ofFederal Awards andState Financial Assistance

Partm

Comparative Statement of Operations and Changes in Fund Balance -Current Fund

Comparative Schedule of Tax Rate InformationComparison ofTax Levies and Collection CurrentlyDelinquent TaxesProperty Acquired by Tax Title Lien LiquidationComparative Schedule ofFund BalancesOfficials in Office and Surety BondsGeneral CommentsRecommendations

79-80

8182

83-84

85868686878788

89-9091

LERCH, VINCI & HIGGINS, LLP

CERTIFIED PUBLIC ACCOUNTANTS

REGISTERED MUNICIPAL ACCOUNTANTS

DIETER P. LERCH, CPA, RMA, PSA

GARY J, VINCI, CPA, RMA, PSA

GARY W. HIGGINS, CPA, RMA, PSA

JEFFREY C. BLISS, CPA, RMA, PSA

PAULJ.LERCH,CPA,RMA,PSA

DONNA L. JAPHET, CPA, PSA

JULIUS B. CONSONI, CPA, PSA

Honorable Mayor and Membersof the Borough Council

Borough of Little FerryLittle Ferry, New Jersey

17 - 17 ROUTE 208

FAIR LAWN, NJ 07410

TELEPHONE (201) 791-7100

FACSIMILE (201) 791-3035

WWW.LVHCPA.COM

INDEPENDENT AUDITORS' REPORT

ELIZABETH A. SHICK, CPA, RMA, PSA

ANDREW PARENTE, CPA, RMA, PSA

ROBERT W. HAAG, CPA, PSA

DEBORAH KOZAK, CPA, PSA

DEBRA GOLLE, CPA

CINDY JANACEK, CPA, RMA

RALPH M. PICONE, CPA, RMA, PSA

We have audited the accompanying balance sheets - regulatory basis of the various funds and account group of the Boroughof Little Ferry as of December 31, 2009 and 2008 and the related statements of operations and changes in fund balance regulatory basis for the years then ended and the related statement of revenues - regulatory basis and statement ofexpenditures - regulatory basis of the Current Fund for the year ended December 31, 2009. These financial statements arethe responsibility of the Borough of Little Ferry's management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

Except as discussed in the fourth paragraph, we conducted our audits in accordance with auditing standards generallyaccepted in the United States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptrol1er General of the United States; and audit requirements prescribed by the Division ofLocal Government Services, Department of Community Affairs, State of New Jersey. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes consideration of internal control over financial reporting as a basis for designing auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Borough of Little Ferry's internal control over financial reporting. Accordingly, we express no such opinion. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As described more ful1y in Note I, the Borough has prepared these financial statements using accounting practices thatdemonstrate compliance with the regulatory basis of accounting and budget laws prescribed or permitted by the Division ofLocal Government Services, Department of Community Affairs, State ofNew Jersey, which practices differ from accountingprinciples generally accepted in the United States of America. The effect on the financial statements of the variancesbetween these regulatory accounting practices and accounting principles general1y accepted in the United States of America,although not reasonably determinable, are presumed to be material.

In addition, the financial statements of the Length of Service Awards Program (LOSAP) Fund have not been audited, and wewere not required by the Division of Local Government Services, Department of Community Affairs, State ofNew Jersey, toaudit nor were we engaged to audit the LOSAP Fund financial statements as part of our audit ofthe Borough's financialstatements. The LOSAP Fund financial activities are included in the Borough's Trust Fund, and represent 52 percent and 41percent of the assets and liabilities, respectively, of the Borough's Trust Funds as of December 31,2009 and 2008

1

INDEPENDENT AUDITORS' REPORT (Continued)

In our opinion, because of the effects of the Borough preparing its financial statements on the basis of accounting discussedin the third paragraph, the financial statements referred to previously do not present fairly, in conformity with accountingprinciples generally accepted in the United States of America, the financial position of the Borough of Little Ferry as ofDecember 31, 2009 and 2008, or the changes in its financial position for the years then ended. Further, the Borough has notpresented a management's discussion and analysis that accounting principles generally accepted in the United States ofAmerica has determined is necessary to supplement, although not required to be part of, the basic financial statements.

However, in our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessaryhad the LOSAP Fund financial statements been audited, the financial statements - regulatory basis referred to previouslypresent fairly, in all material respects, the financial position - regulatory basis of the various funds and account group of theBorough of Little Ferry as of December 31, 2009 and 2008 and the results of operations and changes in fund balance regulatory basis of such funds for the years then ended and the revenues - regulatory basis and the expenditures - regulatorybasis of the Current Fund for the year ended December 31, 2009 on the basis of accounting described in Note 1.

In accordance with Government Auditing Standards, we have also issued a report dated June 30, 2010 on our considerationof the Borough of Little Ferry's internal control over financial reporting and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describethe scope of our testing of internal control over financial reporting and compliance and the results of that testing and not toprovide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of anaudit performed in accordance with Government Auditing Standards and should be considered in assessing the results of ouraudit.

Our audit was conducted for the purpose of forming an opinion on the financial statements of the Borough of Little Ferry.The supplementary schedules listed in the table of contents are presented for purposes of additional analysis and are not arequired part of the financial statements of the Borough of Little Ferry. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, inrelation to the financial statements taken as a whole on the basis of accounting described in Note 1.

;if#"//~~.". ;:JLcL.t:.R- )-/ Me. ". WM/~/

CERCH, VINCI & HlG , LLPCertified Public AccountantsRegistere~}1unjYip I Ac

//"

. LerchRegistered Muni Ipal AccountantRMA Number R00398

Fair Lawn, New JerseyJune 30, 2010

2

BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS - CURRENT FUND

AS OF DECEMBER 31,2009 AND 2008

EXHIBIT APage I

Reference 2009 2008ASSETS

Cash A-4 $ 5,545,386 $ 6,350,664Grants Receivable A-6 118,186 113,869

5,663,572 6,464,533

Receivables and Other Assets with Full ReservesDelinquent Property Taxes Receivable A-8 552,221 536,348Property Acquired for Taxes -

Assessed Valuation A-9 1,062,600 1,062,600Revenue Accounts Receivable A-II 14,203 123,052Due from General Capital Fund C-4 174Due from Animal Control Fund B-6 1,838 11,234

1,631,036 1,733,234Deferred Charges

Special Emergency- Tax Map A-1O 11,600Special Emergency- Revaluation A-IO 46,000Special Emergency- Codification of Ordinances A-IO 10,000

67,600

Total Assets $ 7,294,608 $ 8,265,367

The Accompanying Notes are an Integral Part of these Financial Statements3

BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS - CURRENT FUND


EXHIBIT APage 2

Reference 2009 2008

LIABILITIES, RESERVES AND FUND BALANCE

Liabilities

Appropriation Reserves A-3,A-13 $ 561,395 $ 423,239Encumbrances Payable A-15 320,530 341,366Accounts Payable A-22 5,382 6,879Due to State - Senior Citizens and Veterans A-7 17,476 24,087Special Emergency Notes Payable A-12 46,000Miscellaneous Deposits and Reserves A-14 102,114 164,947Local School District Taxes Payable A-17 2,309,753 2,772,073Reserve for State Tax Appeals A-18 25,499 25,499Prepaid Taxes A-19 431,491 427,101Reserve for Grants Appropriated A-21 166,443 219,325Reserve for Grants - Unappropriated A-20 22,323 20,115Due to General Capital Fund C-4 74,441Due to Other Trust Fund B-2 244,495 256,175

4,206,901 4,801,247

Reserve for Receivables A 1,631,036 1,733,234Fund Balance A-I 1,456,671 1,730,886

Total Liabilities, Reserves and Fund Balance $ 7,294,608 $ 8,265,367


EXHIBIT A-IBOROUGH OF LITTLE FERRY

COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE-REGULATORY BASIS - CURRENT FUND

FOR THE YEARS ENDED DECEMBER 31,2009 AND 2008

Reference Year 2009 Year 2008REVENUE AND OTHER INCOME REALIZED

Fund Balance Utilized A-2 $ 1,500,000 $ 1,700,000Miscellaneous Revenue Anticipated A-2 2,422,482 2,316,715Receipts from Delinquent Taxes A-2 527,041 582,703Receipts from Cunent Taxes A-2 26,251,739 25,799,326Non-Budget Revenue A-2 252,749 313,305Other Credits to Income

Statutory Excess - Animal Control B-6 1,838 1,601Interfunds Returned A 11,234 2,340Cancel Prior Year Accounts Payable A-23 35,697Cancel Prior Year Reselve A-14 76,100 500Unexpended Balance of Appropriation Reserves A-13 343,339 456,604

Totallncome 31,386,522 31,208,791

EXPENDITURESBudget and Emergency Appropriations

OperationsSalaries and Wages A-3 5,028,798 4,918,141Other Expenses A-3 5,848,011 6,297,570

Deferred Charges and StatutoryExpenditures - Municipal A-3 645,363 294,730

Capital Improvements A-3 25,000 90,000Municipal Debt Service A-3 1,113,379 1,057,466

County Taxes Payable A-16 2,514,866 2,432,959Due County for Added and Omitted Taxes A-16 6,409 4,155Local District School Taxes Payable A-17 14,975,609 14,673,133Establish Reserve for Interfunds A 2,012 1,601Prior Year Senior Citizen Deduction Disallowed A-7 250 140Refund Prior Year Revenue A-4 1,040 1,008

Total Expenditures 30,160,737 29,770,903

Statutory Excess to Fund Balance 1,225,785 1,437,888

Fund Balance, January 1 A 1,730,886 1,992,998

2,956,671 3,430,886Decreased by:Utilization as Anticipated Revenue A-I 1,500,000 1,700,000

Fund Balance, December 31 A $ 1,456,671 $ 1,730,886


EXHIBIT A-2Page I

BOROUGH OF LITTLE FERRYSTATEMENT OF REVENUES - REGULATORY BASIS

CURRENT FUNDFOR THE YEAR ENDED DECEMBER 31, 2009

Added by2009 N.J.S. 2009 Excess or

Reference Budget 40A:4-87 Realized (Deficit)

FUND BALANCE ANTICIPATED A-I $ 1,500,000 $ 1,500,000

MISCELLANEOUS REVENUESLicenses

Alcoholic Beverages A-II 25,000 35,789 $ 10,789Other A-2 45,000 51,600 6,600

Fees and Permits A-2 12,000 10,275 (1,725)Fines and Costs

Municipal Court A-II 155,000 195,572 40,572Interest and Costs on Taxes A-11 119,300 114,565 (4,735)Energy Receipts Tax A-II 841,947 841,947Consolidated Municipal Property Tax Relief Act A-II 337,624 337,624Unifonn Fire Safety Act A-11 28,500 32,434 3,934Uniform Construction Code Fees A-II 81,300 83,432 2,132State and Federal Revenues Offset with

AppropriationsMunicipal Alliance A-6 11,017 11,017NJ Meadowlands Commission Grant - MAP A-6 20,000 $ 100,000 120,000Clean Communities A-6 11,200 11,200Reserve for Body Annor Replacement Program A-20 2,721 2,721Reserve for NJ Municipal Storrnwater Reg. Program A-20 2,552 2,552Reserve for NJ Meadowlands Comm. - Tax Sharing A-20 1,325 1,325Reserve for Municipal Recycling Assistance A-20 5,305 5,305Reserve for Alcoliol Education & Rehab A-20 696 696Reserve for Drunk Driving Enforcement Fund A-20 7,516 7,516

Other Specialltems:Hotel Tax A-II 55,000 41,748 (13,252)Cell Tower Rents A-II 31,400 32,664 1,264Prior Year BCUA Interlocal Service Agreement Reimb A-11 110,000 110,000Interlocal Agreement - BCUA A-11 110,000 110,000Interlocal Agreement - Teterboro Police Svcs. A-II 260,000 262,500 2,500

Total Miscellaneous Revenues A-I 2,263,203 111,200 2,422,482 48,079

RECEIPTS FROM DELINQUENT TAXES A-I,A-8 530,000 527,041 (2,959)

AMOUNT TO BE RAISED FOR SUPPORTOF MUNICIPAL BUDGET

Local Tax For Municipal Purposes A-2 9,188,198 9,186,905 (1,293)

Total General Revenues A-3 $ 13,481,401 $ 111,200 13,636,428 $ 43,827

Non-Budget Revenue A-I,A-2 252,749

$13,889,177


BOROUGH OF LITTLE FERRYSTATEMENT OF REYENUES - REGULATORY BASIS

CURRENT FUNDFOR THE YEAR ENDED DECEMBER 31, 2009

Reference

EXHIBIT A-2Page 2

ANALYSIS OF REALIZED REVENUESAJlocation of Current Tax Collection

Revenue from Collections

Allocated to School and County Taxes

Add Appropriation "Reserve for Uncollected Taxes"

Amount for Support of Municipal Budget Appropriations

A-8

A-16, A-17

A-3

A-2

$ 26,251,739

17,996,884

8,254,855

932,050

$ 9,186,905

OTHER LICENSESBorough ClerkBoard of Health/Registrar

FEES AND PERMITSBorough ClerkBoard of Health/Regisb-arPolicePlanning/ZoningTax Collector

A-2,A-11

A-2,A-ll

$

$

$

$

43,7957,805

51,600

3,0212,3243,0081,867

55

10,275

ANALYSIS OF NON-BUDGET REVENUESInterest on Deposits and InvestmentsCable Franchise TaxBC J1F DividendAdmin Fees - Private Detail & CobraVerizon Franchise FeeBergen Municipal Shared SurplusSenior Citizen 2% Administrative PaymentsMiscellaneous

Cash CollectedDue from General Capital FundDue from Other Trust Fund


A-2

A-4C-4B-2

$ 151,14623,684

6,95118,21217,9513,1038,134

23,568

$ 252,749

$ 242,9359,001

813

$ 252,749

EXHIBIT A-3Page 1

BOROUGH OF LITTLE FERRYSTATEMENT OF EXPENDITURES - REGULATORY BASIS - CURRENT FUND

FOR THE YEAR ENDED DECEMBER 31,2009

2009 Appropriations 2009 Expended

Budget After Paid orBudget Modification Charged Reserved Cancelled

OPERATIONS - WITHIN "CAPS"

GENERAL GOVERNMENTGeneral Administration

Salaries & Wages $ 150,800 $ 152,400 $ 152,398 $ 2Other Expenses - Postage 13,400 13,400 12,803 597Other Expenses - Miscellaneous 13,725 22,425 21,915 510Other Expenses - CDL Drug Testing 750 750 116 634

Mayor & CouncilSalaries & Wages 41,450 41,450 41,450

Other Expenses 19,500 19,500 17,539 1,961

Municipal ClerkSalaries & Wages 96,879 96,879 96,389 490

Other Expenses 14,225 14,225 11,875 2,350

Other Expenses - Elections 8,500 7,800 7,614 186Financial Administration (Treasury)

Salaries & Wages 94,474 89,474 85,880 3,594

Other Expenses 41,000 31,000 25,200 5,800

Audit Services

Other Expenses 37,500 37,500 37,500Revenue Administration (Tax Collection)

Salaries & Wages 51,829 51,829 48,767 3,062

Other Expenses 12,150 15,350 13,798 1,552

Assessment of TaxesSalaries & Wages 22,273 22,273 21,955 318Other Expenses 35,575 20,575 7,615 12,960

Legal Services & CostsSalaries & Wages 85,000 85,000 85,000

Other Expenses - Fees and Costs 15,500 10,500 10,500

Other Expenses - Special Counsel 10,000 10,000 9,957 43Engineering Services & Costs

Other Expenses 34,200 21,700 19,760 1,940

Historic SocietyOther Expenses 100 100 100

Planning Boardl Zoning BoardSalaries & Wages 13,245 13,245 12,716 529Other Expenses 44,525 38,205 26,737 11,468

InsuranceUnemployment 31,000 31,000 30,497 503Other Insurance Premiums 402,500 397,100 361,111 35,989

Group Insurance for Employees 1,008,100 998,100 974,317 23,783

PUBLIC SAFETYAid to Volunteer Ambulance First Aid Squad 24,000 24,000 24,000

FireSalaries & Wages 11,839 11,839 8,150 3,689

Salaries & Wages - Uniform Fire Safety 18,300 19,900 19,214 686Other Expenses - Clothing Allowance 55,000 55,000 52,425 2,575

Other Expenses - Miscellaneous 66,900 66,900 53,377 13,523

Other Expenses - Tuition 1,000 1,000 504 496Other Expenses - Physical Examinations 1,600 1,600 1,600Other Expenses - Uniform Fire Safety 18,950 18,950 14,808 4,142

Other Expenses - Fire Hydrant Services 77,000 85,400 85,344 56


EXHIBIT A-3Page 2


FOR THE YEAR ENDED DECEMBER 31, 2009

2009 Appromiations 2009 Expended

Budget After Paid or

OPERAnONS - WITHIN "CAPS" (Cont'd) Budget Modification Charged Reserved CancelledPUBLIC SAFETY (Cont'd)

PoliceSalaries & Wages $ 3,068,161 $ 3,068,161 $ 2,964,360 $ 103,801

Other Expenses - Miscellaneous 43,950 43,950 27,367 16,583

Other Expenses - Acquisition ofYehicles 10,000 10,000 3,489 6,511

Municipal Prosecutor's OfficeSalaries & Wages 5,500 5,500 4,500 1,000

Office of Emergency ManagementOther Expenses 2,500 2,500 2,500

PUBLIC WORKSStreets & Roads Maintenance

Salaries & Wages 802,939 802,939 793,667 9,272

Other Expenses 60,100 62,700 42,555 20,145

Other Public Works FunctionsOther Expenses - Sewer System 5,800 5,800 5,208 592Other Expenses - Drainage 9,750 9,750 9,750

Other Expenses- Beautification Comm. 1,250 1,250 661 589

Buildings and GroundsSalaries & Wages 53,165 53,165 37,261 15,904

Other Expenses 37,550 37,550 29,934 7,616

Other Expenses - Environmental Testing 500 500 500

Vehicle MaintenanceOther Expenses 40,800 40,800 35,570 5,230

Solid Waste CollectionOther Expenses - Garbage - Contractual 225,000 225,000 200,180 24,820

HEALTH AND HUMAN SERVICESBoard of Health

Salaries & Wages 10,199 10,199 10,161 38Other Expenses 53,825 62,125 62,100 25

Animal Control ServicesSalaries & Wages 2,900 2,900 2,900Other Expenses- Bergen County Animal Shelter 16,400 16,420 16,416 4

PARK AND RECREATION FUNCTIONSRecreation Services and Programs

Salaries & Wages 22,000 22,700 22,633 67

Other Expenses 22,650 22,650 15,118 7,532

Maintenance of Parks and Playgrounds

Other Expenses 15,650 15,650 9,973 5,677


EXHlBlT A-3Page 3



2009 Appropriations 2009 ExpendedBudget After Paid or

OPERATIONS - WITHIN "CAPS" (Cont'd) Budget Modification Charged Reserved CancelledOTHER COMMON OPERATING FUNCTIONS (Cont'd)

Celebration of Public EventsOther Expenses $ 10,950 $ 10,950 $ 3,420 $ 7,530

Senior Citizen ProgramOther Expenses 11,600 11,600 6,926 4,674

Senior Citizen I Community BusingSalaries & Wages 6,500 6,500 5,186 1,314

Municipal CourtSalaries and Wages 84,419 83,919 75,855 8,064Other Expenses 8,090 8,590 8,503 87

Public Defender (P.L. 1997, C.256)Salaries and Wages 2,000 2,000 2,000

Uniform Construction Code Enforcement Functions

Appropriations Offset by DedicatedRevenues (N.J.A.C. 5:23-4-17)CODE ENFORCEMENT AND ADMINISTRATIONUniform Construction Code Enforcement Functions

Construction Code OfficialSalaries & Wages 78,001 78,001 78,001Other Expenses 6,375 6,375 3,975 2,400

Other Code Enforcement FunctionsRent Leveling Board

Salaries & Wages 1,525 1,525 1,525Other Expenses 50 50 50

Properly Maintenance CodeOther Expenses 400 400 400

Unclassified:UTILITY EXPENSES AND BULK PURCHASES

Electricity 220,000 255,000 245,664 9,336Street Lighting 124,000 124,000 123,995 5Telephone 35,850 35,850 30,087 5,763Water 8,400 8,400 8,400Gasoline 150,000 150,000 86,910 63,090

LANDFILL/SOLID WASTE DISPOSAL COSTSGarbage - Tipping Fees 346,500 346,500 302,589 43,911Recycling - Leaf Disposal 38,700 38,700 38,700

Total Operations Within "CAPS" 8,216,738 8,216,938 7,708,370 508,568

Detail:Salaries & Wages 4,723,398 4,721,798 4,569,968 151,830Other Expenses 3,493,340 3,495,140 3,138,402 356,738


EXHIBIT A-3Page 4



2009 AppropriationsBudget After

Budget Modification

2009 ExpendedPaid or

Charged Reserved Cancelled

DEFERRED CHARGES I REGULATORYEXPENDITURES - MUNICIPAL WITHIN "CAPS"

Statutory ChargesSocial Security System (O.A.S.L)Public Employees Retirement SystemConsolidated Police & Fire Retirement SystemPolice & Firemens' Retirement

Pension Adjustment Fund

Total Deferred Charges & Statutory

Expenditures - Municipal within "CAPS"

Total General Appropriations for MunicipalPurposes Within "CAPS"

$ 180,000 $ 180,000 $ 179,995 $ 574,974 75,959 75,335 624

100 100 100317,889 318,799 318,799

5,000 2,905 1,119 1,786

577,963 577,763 575,248 2,515

8,794,701 8,794,701 8,283,618 511,083

OPERATIONS - EXCLUDED FROM "CAPS"

Police Dispatch/9IlOther ExpensesReverse 911

Educational FunctionsMaintenance of Free Public Library (P.L.1985 C.82)

Hackensack Meadowlands Adjustment Tax

Sewerage Processing and Disposal CostsBergen County Utilities Authority-Contractual

South Hackensack Sewer ChargesRecycling Tax

Public Safety FunctionsLOSAP- Fire Dept.

Total Other Operations Excluded from

"CAPS"

8,750 8,750 8,100

750 750

445,053 445,053 435,230

445,423 445,423 445,423

975,000 975,000 972,41535,000 35,000 19,12610,000 10,000 7,615

107,400 107,400 97,348

2,027,376 2,027,376 1,985,257

650750

9,823

2,58515,8742,385

10,052

42,119

Interlocal Municipal Services AgreementBergen County Utilities Authority

Salaries & Wages

Teterboro PoliceSalaries & WagesOther Expenses

Total Interlocal Municipal Service Agreements

110,000

197,00063,000

370,000

110,000

197,00063,000

370,000

110,000

197,00062,892

369,892

108

108


EXHlBlT A-3Page 5



2009 AppropriationsBudget After

Budget Modification

2009 ExpendedPaid or

Charged Reserved CancelledOPERATIONS - EXCLUDED FROM "CAPS"

(CONT'D.)Public and Private Programs Offset by Revenues

Drunk Driving Enforcement FundAlcohol Ed. & RehabNJ Mun. Stann Water Reg. ProgramMunicipal AllianceNJ Meadowlands CommissionRecycling Tonnage GrantBody AnnaT Replacement ProgramNJ Meadowlands Commission- Tax SharingClean CommunitiesMunicipal Alliance - Local Share

$ 7,516 $ 7,516 $ 7,516696 696 696

2,552 2,552 2,55211,017 11,017 11,01720,000 120,000 111,915 $ 8,085

5,305 5,305 5,3052,721 2,721 2,7211,325 1,325 1,325

11,200 11,2002,875 2,875 2,875

Total Public and Private Programs Offset byRevenues

Total Operations Excluded from "CAPS"

Detail:Salaries & WagesOther Expenses

CAPITAL IMPROVEMENTSEXCLUDED FROM "CAPS"

Capital Improvement Fund

Total Capital Improvements Excluded

from "CAPS"

54,007

2,451,383

307,0002,144,383

25,000

25,000

165,207

2,562,583

307,0002,255,583

25,000

25,000

157,122

2,512,271

307,0002,205,271

25,000

25,000

8,085

50,312

50,312

MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS"

Payment of Bond PrincipalPayment of Bond Anticipation and Emergency NotesInterest on BondsInterest on NotesGreen Trust Loan Repayments - Prine. & Interest

Total Municipal Debt Service Excluded

from "CAPS"

625,000 625,000 625,000160,000 160,000 160,000155,570 155,570 155,570152,091 152,091 152,09120,718 20,718 20,718

1,113,379 1,113,379 1,113,379



STATEMENT OF EXPENDITURES - REGULATORY BASIS - CURRENT FUNDFOR THE YEAR ENDED DECEMBER 31, 2009

EXHIBIT A-3Page 6

DEFERRED CHARGES - Excluded from CAPSSpecial Emergency Authorizations (5 Years)

Total Deferred Chargcs- Excluded from "CAPS"

Transferred to RO.E. for Use of Local Schools

(NJ.SA 40A8-17.1 & 17.3)

Total General Appropriations Excluded

from "CAPS"

Subtotal General Appropriations

Reserve for Uncollected Taxes

Total General Appropriations

2009 Appropriations 2009 ExpendedBudget After Paid or

Budget Modification Charged Reserved Cancelled

$ 67,600 $ 67,600 $ 67,600

67,600 67,600 67,600

97,288 97,288 97,288

3,754,650 3,865,850 3,815,538 $ 50,312 $

12,549,351 12,660,551 12,099,156 561,395

932,050 932,050 932,050

$ 13,481,401 $ 13,592,601 $ 13,031,206 $ 561,395 $

Reference A-2 A-3 A-I A,A-l




EXHIBIT A-3Page 7

Budget as AdoptedAppropriations Added by 40A:4-87

Cash DisbursedEncumbrances PayableTransfer to Appropriated Grant ReservesDeferred Charges - Special Emergency AuthorizationsReserve for Uncollected Taxes

Reference

A-3A-3A-3

A-4A-15A-21A-IOA-2

$ 13,481,401111,200

AppropriationsBudget AfterModification

$ 13,592,601

ExpendedPaid or

Charged

$ 11 ,562,291312,143157,12267,600

932,050

$ 13,031,206


EXHIBITBPage I

BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS - TRUST FUNDS


Reference 2009 2008

ASSETS

ANIMAL CONTROL FUNDCash B-1 $ 4,829 $ 13,672

4,829 13,672

OTHER TRUST FUND

Cash B-1 374,907 432,308Due from Current Fund B-2 244,495 256,175

619,402 688,483

COMMUNITY DEVELOPMENT TRUST FUND

Cash B-1 100 100Due from Other Trust Fund B-12 100 100

200 200

LENGTH OF SERVICE AWARD PROGRAMTRUST FUND-(LOSAP)-(UNAUDITED)

Investments B 566,324 392,616Contribution Receivable B 107,332 97,348

673,656 489,964

Total Assets $ 1,298,087 $ 1,192,319


BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS - TRUST FUNDS

AS OF DECEMBER 31, 2009 AND 2008

EXHIBITBPage 2

Reference 2009 2008


ANIMAL CONTROL FUNDReserve for Animal Control Fund Expenditures B-4 $ 2,991 $ 2,414Due to State ofNew Jersey B-5 24Due to Current Fund B-6 1,838 11,234

4,829 13,672

OTHER TRUST FUNDEscrow and Miscellaneous Deposits B-3 174,834 180,640Due to General Capital Fund B-8 2,711 2,711Payroll Deductions Payable B-13 61,156 143,734Reserve for POAA B-7 1,638 1,116Reserve for Indian Lake Fund B-IO 100 100Reserve for Municipal Alliance Flmd B-II 15,143 8,296Reserve for Recreation Fees B-15 131,660 108,890Reserve for Veteran's Park B-17 4,139 4,133Reserve for Accumulated Leave Compensation B-16 227,896 238,763Reserve for Affordable Housing B-9 25Due to Community Developmeut Trust Fund B-12 100 100

619,402 688,483

COMMUNITY DEVELOPMENT TRUST FUNDDue to General Capital Fund B-14 200 200

200 200

LENGTH OF SERVICE AWARDS PROGRAMTRUST FUND (LOSAP) (UNAUDITED)

Reserve for LOSAP B 673,656 489,964

Total Liabilities, Reserves andFund Balance $ 1,298,087 $ 1,192,319


BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS

GENERAL CAPITAL FUNDAS OF DECEMBER 31,2009 AND 2008

EXHIBITC

Reference 2009 2008

ASSETS

Cash C-2,C-3 $ 1,226,683 $ 1,889,880Grants/Accounts Receivable C-7 136,514 397,172Deferred Charges to Future Taxatiou

Funded C-5 3,926,681 4,528,729Unfunded C-6 7,661,902 6,951,664

Due from Community Development Trust Fund C-11 200 200Due from Current Fund C-4 74,441Due from Other Trust Fund B-8 2,711 2,711

Total Assets $ 12,954,691 $ 13,844,797


General Serial Bonds PayableBond Anticipation Notes PayableGreen Acres Loan PayableImprovement Authorizations

FundedUnfunded

Encnmbrances/Contracts PayableDue to Current FundReserve for Grants/Accounts ReceivableReserve for Payment of BondsCapital Improvement FnndFund Balance

Total Liabilities, Reserves and Fund Balance

C-14 $ 3,756,000 $ 4,341,000C-15 4,763,500 5,500,000C-12 170,681 187,729

C-8 447,796 256,012C-8 2,350,013 1,789,771C-9 1,195,534 1,191,265C-4 174C-7 9,612 222,023

C-13 90,960 108,935C-I0 15,646 90,000C-I 154,775 158,062

$ 12,954,691 $ 13,844,797

There were bonds and notes authorized but not issued at December 31, 2009 and 2008 amountiug to$3,153,593 and $2,114,154 respectively. (Exhibit C-16)


EXHIBIT C-I

BOROUGH OF LITTLE FERRYCOMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS

GENERAL CAPITAL FUNDFOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

Reference 2009 2008

Balance, January 1 C $ 158,062 $ 109,756

Increased by:Premium on Sale ofBondslNotes C-4 91,713 48,306

249,775 158,062Decreased by:

Appropriated to Finance Improvement Authorizations C-8 95,000

95,000

Balance, December 31 C $ 154,775 $ 158,062


BOROUGH OF LITTLE FERRYCOMPARATIVE BALANCE SHEETS - REGULATORY BASIS

GENERAL FIXED ASSETS ACCOUNT GROUPAS OF DECEMBER 31,2009 AND 2008

ASSETS

LandBuildings and Building ImprovementsMachinery and Equipment

Total Assets

FUND BALANCE

Investment in General Fixed Assets


EXHIBITD

$ 7,879,746 $ 7,879,74616,886,802 16,886,8023,397,065 3,288,645

$ 28,163,613 $ 28,055,193

$ 28,163,613 $ 28,055,193

NOTES TO FINANCIAL STATEMENTS

BOROUGH OF LITTLE FERRYNOTES TO FINANCIAL STATEMENTSYEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Borough of Little Ferry have been prepared on a basis of accounting in confonnity withaccounting principles and practices prescribed or permitted by the Division of Local Government Services, Departmentof Community Affairs, State of New Jersey (the "Division") which is a regulatory basis of accounting other thanaccounting principles generally accepted in the United States of America (GAAP). Such principles and practices aredesigned primarily for detennining compliance with legal provisions and budgetary restrictions and as a means ofreporting on the stewardship of public officials with respect to public funds. Under this method of accounting, theBorough accounts for its financial transactions through separate funds, which differ from the fund structure required byGAAP.

The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles. GASB has adopted accounting statements to be used bygovernmental units when reporting financial position and results of operations in accordance with accounting principlesgenerally accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do notprepare financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements.

A. Reporting Entity

The Borough of Little Ferry (the "Borough") was incorporated in 1894 and operates under an elected Mayor/Councilfonn of government. The Borough's major operations include public safety, road repair and maintenance, sanitation,fire protection, recreation and parks, health services, and general administrative services.

GASB requires the financial reporting entity to include both the primary government and component units. Componentunits are legally separate organizations for which the Borough is financially accountable. The Borough is financiallyaccountable for an organization if the Borough appoints a voting majority of the organization's governing board and (I)the Borough is able to significantly influence the programs or services perfonned or provided by the organization; or (2)the Borough is legally entitled to or can otherwise access the organization's resources; the Borough is legally obligatedor has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization;or the Borough is obligated for the debt of the organization. Component units may also include organizations that arefiscally dependent on the Borough in that the Borough approves the budget, the issuance of debt or the levying of taxes.The Borough is not includable in any other reporting entity as a component unit.

The financial statements contained herein include only those boards, bodies, officers or commissions as required byNJS 40A:5-5. Accordingly, the financial statements of the Borough do not include the municipal library, volunteer firedepartment or volunteer ambulance squad, which are considered component units under GAAP. Complete financialstatements of the above component units can be obtained by contacting the Treasurer of the respective entity.

20

BOROUGH OF LITTLE FERRYNOTES TO FINANCIAL STATEMENTSYEARS ENDED DECEMBER 31,2009 AND 2008

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Measurement Focus, Basis of Accounting and Basis of Presentation

The Borough uses funds, as required by the Division, to report on its financial position and the results of its operations.Fund accounting is designed to demonstrate legal compliance and to aid financial administration by segregatingtransactions related to certain Borough functions or activities. The Borough also uses an account group, which isdesigned to provide accountability for certain assets that are not recorded in those Funds.

The Borough lias the following funds and account group:

Current Fund - This fund is used to account for the revenues and expenditures for governmental operations of ageneral nature and the assets and liabilities related to such activities, including Federal and State grants notaccounted for in another fund.

Trust Funds - Trust Funds are used to account for assets held by the government in a trustee capacity. Funds held bythe Borough as an agent for individuals, private organizations, or other governments are recorded in the Trust Funds.

Animal Control Fund - This fund is used to account for fees collected from dog and cat licenses andexpenditures which are regulated by NJS 4: 19-15.11.

Other Trust Fund - This fund is established to account for the assets and resources, which are held by theBorough as a trustee or agent for individuals, private organizations, other governments and/or other funds.These funds include dedicated fees/proceeds collected, developer deposits, payroll related deposits andfunds deposited with the Borough as collateral.

Community Development Block Grant Fund - This fund is used to account for grant proceeds and relatedexpenditures for Block grant entitlements.

Length o(Service Awards Program Fund (LOSAP) - This fund is established to account for the tax-deferredincome benefits to active volunteer members of emergency service organizations of the Borough.

General Capital Fund - This fund is used to account for the receipt and disbursement of funds used and relatedfinancial transactions related to the acquisition or improvement of general capital facilities and other capital assets,other than those acquired in the Current Fund.

General Fixed Assets Account Group - This account group is used to account for all general fixed assets of theBorough. The Borough's infrastructure is not reported in the account group.

The Borough of Little Ferry follows a modified accrual basis of accounting. Under this method of accounting,revenues, except StatelFederal Aid, are recognized when received and expenditures are recorded when incurred. Theaccounting principles and practices prescribed or permitted for mtmicipalities by the Division ("regulatory basis ofaccounting") differ in certain respects from accounting principles generally accepted in the United States of America(GAAP) applicable to local government units. The more significant differences are as follows:

21



B. Measurement Focus, Basis of Acconnting and Basis of Presentation (Continned)

Property Tax Revenues - Real property taxes are assessed locally, based upon the assessed value of the property. Thetax bill includes a levy for Municipal, County, and School purposes. The bills are mailed aunually in June for thatcalendar year's levy. Taxes are payable in four quarterly installments on February I, May I, August 1, and November I.The amounts of the first and second installments are determined as one-quarter of the total tax levied against theproperty for the preceding year. The installment due the third and fourth quarters is determined by taking the currentyear levy less the amount previously charged for the first and second installments, with the remainder being dividedequally. If unpaid on these dates, the amount due becomes delinquent and subject to interest at 8% per annum, or 18%on any delinquency amount in excess of $1,500. A penalty of up to 6% of the delinquency may be imposed on ataxpayer with a delinquency in excess of $1 0,000 who fails to pay that delinquency prior to the end of the fiscal year inwhich the charges become delinquent. The school levy is turned over to the Board of Education as expenditures areincurred, and the balance, if any, must be transferred as of June 30, of each fiscal year. County taxes are paid quarterlyon February IS, May IS, August IS and November IS, to the County by the Borough. When unpaid taxes or anymunicipal lien, or part thereof, on real property, remains in arrears on April first in the year following the calendar yearlevy when the same became in arrears, the collector in the municipality shall, subject to the provisions of the NewJersey Statutes, enforce the lien by placing the property on a standard tax sale. The Borough also has the option whenunpaid taxes or any municipal lien, or part thereof, on real property remains in arrears on the II th day of the eleventhmonth in the fiscal year when the taxes or lien became in arrears, the collector in the municipality shall, subject to theprovisions of the New Jersey Statutes, enforce the lien by placing property on an accelerated tax sale, provided that thesale is conducted and completed no earlier than in the last month of the fiscal year. The Borough may institute annualin rem tax foreclosure proceedings to enforce the tax collection or acquisition of title to the property. In accordancewith the accounting principles prescribed by the State of New Jersey, current and delinquent taxes are realized asrevenue when collected. Since delinquent taxes and liens are fully reserved, no provision has been made to estimatethat portion of the tax receivable and tax title liens that are uncollectible. GAAP requires property tax revenues to berecognized in the accounting period when they become susceptible to accrual (i.e., when they are both levied andavailable), reduced by an allowance for doubtful accounts.

Miscellaneous Revenues - Miscellaneous revenues are recognized on a cash basis. Receivables for the miscellaneousitems that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the Borough's CurrentFund. GAAP requires such revenues to be recognized in the accounting period when they become susceptible toaccrual (i.e., when they are both measurable and available).

Grant and Similar Award Revenues - Federal and State grants, entitlements or shared revenues received for purposesnormally financed through the Current Fund are recognized when anticipated in the Borough's budget. GAAP requiressuch revenues to be recognized as soon as all eligibility requirements imposed by the grantor or provider have been met.

Budgets and Bndgetary Acconnting - An annual budget is required to be adopted and integrated into the accountingsystem to provide budgetary control over revenues and expenditures. Budget amounts presented in the accompanyingfinancial statements represent amounts adopted by the Borough and approved by the State Division of LocalGovernment Services per N.J.S.A. 40A:4 et seq.

22



B. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)

Budgets and Budgetary Accouutiug (Continued)

The Borough is not required to adopt budgets for the following funds:

Trust FundsGeneral Capital Fund

The governing body is required to introduce and approve the annual budget no later than February 10, of the fiscal year.The budget is required to be adopted no later than March 20, and prior to adoption must be certified by the Division ofLocal Government Services, Department of Community Affairs, State of New Jersey. The Director of the Division ofLocal Government Services, with the approval of the Local Finance Board may extend the introduction and approvaland adoption dates of the municipal budget. The budget is prepared by fund, function, activity and line item (salary orother expense) and includes information on the previous year. The legal level of control for appropriations is exercisedat the individual line item level for all operating budgets adopted. The governing body of the municipality mayauthorize emergency appropriations and the inclusion of certain special items of revenue to the budget after its adoptionand detennination of the tax rate. During the last two months of the fiscal year, the governing body may, by a 2/3 vote,amend the budget through line item transfers. Management has no authority to amend the budget without the approvalof the Governing Body. Expenditures may not legally exceed budgeted appropriations at the line item level. During2009 the Borough Council increased the original budget by $111,200. The Borough did not increase the original 2008budget. The increase was funded by additional aid allotted to the Borough. In addition, the governing body approvedseveral budget transfers during 2009 and 2008.

Expenditures - Expenditures are recorded on the "budgetary" basis of accounting. Generally, expenditures arerecorded when an amount is encumbered for goods or services through the issuance of a purchase order in conjunctionwith an encumbrance accounting system. Outstanding encumbrances at December 31, are reported as a cash liability inthe financial statements. Unexpended or uncommitted appropriations, at December 31, are reported as expendituresthrough the establishment of appropriation reserves unless cancelled by the governing body. GAAP requiresexpenditures to be recognized in the accounting period in which the fund liability is incurred, if measurable, except forunmatured interest on general long-term debt, as well as expenditures related to compensated absences and claims andjudgements, which are recognized when due.

Encumbrauces - Contractual orders outstanding at December 31, are reported as expenditures and liabilities throughthe establishment of an encumbrance payable. Encumbrances do not constitute expenditures or liabilities under GAAP.

Appropriatiou Reserves - Appropriation reserves are recorded as liabilities and are available, until lapsed at the closeof the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding year. Lapsedappropriation reserves are recorded as additions to income. Appropriation reserves do not exist under GAAP.

Compensated Absences - Expenditures relating to obligations for unused vested accumulated vacation and sick leaveare not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39for the future payment of compensated absences. GAAP requires that the amount that would normally be liquidatedwith expendable available financial resources be recorded as an expenditure in the operating funds and the remainingobligations are recorded as a long-term obligation in the government-wide financial statements.

23




Property Acquired for Taxes - Property acquired for taxes is recorded in the Current Fund at the assessed valuationwhen such property was acquired, and is fully reserved. GAAP requires such property to be recorded as a capital assetin the government-wide financial statements at fair value on the date of acquisition.

Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created bycharges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in theother funds are not offset by reserves. GAAP does not require the establishment of an offsetting reserve for interfundsand, therefore, does not recognize income in the year liquidated.

Cash and Investments - Cash includes amounts in demand deposits as well as short-term investments with a maturitydate within three months of the date acquired by the government. Investments are reported at cost and are limited byN.J.S.A. 40A:5-l5.1 et seq. with the exception of LOSAP Trust Fund investments which are reported at fair value andare limited by N.JA.C. 5:30-14.19. GAAP requires that all investments be reported at fair value.

Tax Appeals and Other Contingent Losses - Losses arising from tax appeals and other contingent losses arerecognized at the time a decision is rendered by an administrative or judicial body; however, municipalities mayestablish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses.GAAP requires such amounts to be recorded when it is probable that a loss has been incurred and the amount of suchloss can be reasonably estimated.

Deferred School Taxes - School taxes raised in the Current Fund for a school fiscal year (July I to June 30) whichremain unpaid at December 31 of the calendar year levied may be deferred to fund balance to the extent of not morethan 50% of the annual levy providing no requisition has been made by the school district for such amount. GAAPdoes not permit the deferral of unpaid school taxes to fund balance at year end.

General Fixed Assets - In accordance with NJAC 5:30-5.6, Accounting for Governmental Fixed Assets, the Boroughof Little Ferry has developed a fixed assets accounting and reporting system. Fixed assets are defined by the Boroughas assets with an initial, individual cost of $2,000 and an estimated useful life in excess of two years.

Fixed assets used in governmental operations (general fixed assets) are accounted for in the General Fixed AssetsAccount Group. Public domain ("infrastructure") general fixed assets consisting of certain improvements other thanbuildings, such as roads, bridges, curbs and gutters, streets and sidewalks are not capitalized.

Fixed Assets are stated as follows:

Land and BuildingsMachinery and Equipment

No depreciation has been provided for in the financial statements.

24

Assessed ValueReplacement Cost (Purchased Prior toDecember 31, 2002)

Historical Cost (Purchased AfterJanuary 1,2003)




General Fixed Assets (Continued)

Expenditures for construction in progress are recorded in the Capital Funds until such time as the construction iseompleted and put into operation.

GAAP requires that capital assets be recorded in proprietary-type funds as well as the government-wide financialstatement at historical or estimated historical cost if actual historical cost is not available. 1n addition, GAAP requiresdepreciation on capital assets to be recorded in proprietary-type funds as well as in the government-wide financialstatements.

Use of Estimates - The preparation of financial statements requires management of the Borough to make estimatesand assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of accrued revenues and expendituresduring the reporting period. Accordingly, actual results could differ from those estimates.

Reclassifications - Certain reclassifications have been made to the December 31, 2008 balances to conform to theDecember 31, 2009 presentation.

Comparative Data - Comparative data for the prior year has been presented in the accompanying fmancial statementsin order to provide an understanding of changes in the Borough's financial position and operations. However,comparative data have not been presented in all statements because their inclusion would make certain statementsunduly complex and difficult to understand.

C. Basic Financial Statements

The GASB Codification also requires the financial statements of a governmental unit to be presented in the basicfinancial statements in accordance with GAAP. The Borough presents the financial statements listed in the table ofcontents which are required by the Division and which differ from the financial statements required by GAAP. 1naddition, the Division requires the financial statements listed in the table of contents to be referenced to thesupplementary schedules. This practice differs from reporting requirements under GAAP.

NOTE 2 DEPOSITS AND INVESTMENTS

The Borough considers petty cash, change funds, cash in banks, certificates of deposit and deposits with the New JerseyCash Management Fund as cash and cash equivalents.

25


NOTE 2 DEPOSITS AND INVESTMENTS (Continned)

Deposits

The Borough's deposits are insured through either the Federal Deposit Insurance Corporation (FDIC), SecuritiesInvestor Protection Corporation (SIPC) or New Jersey's Governmental Unit Deposit Protection Act (GUDPA). TheBorough is required to deposit their funds in a depository which is protecting such funds pursuant to GUDPA. TheNew Jersey Governmental Unit Deposit Protection Act requires all banks doing business in the State of New Jersey tomaintain additional collateral in the amount of 5% of the average public deposits and to deposit these amounts with theFederal Reserve Bank for all deposits not covered by the FDIC.

Bank balances are insured up to $250,000 in the aggregate by the FDIC for each bank for a temporary period endingDecember 31, 2013. SIPC replaces cash claims up to a maximum of $100,000 for each failed brokerage firm. AtDecember 31, 2009 and 2008, the book value of the Borough's deposits were $7,151,905 and $8,686,624 and bank andbrokerage firm balances of the Borough's deposits amounted to $7,430,055 and $9,015,016, respectively. TheBorough's deposits which are displayed on the various fund balance sheets as "cash" are categorized as:

Bank BalanceDepository Account

Insured $ 7,430,055 ;;;$~~9,;;,0;;;15;c<'0;;,;1",,6

Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, thegovernment's deposits may not be returned to it. The Borough does not have a formal policy for custodial creditrisk, however, all the Borough's deposits appear adequately insured.

Investments

The Borough is permitted to invest public funds in accordance with the types of securities authorized by N.J.S.A.40A:5-15.1. Investments include bonds or other obligations of the United States or obligations guaranteed by theUnited States of America, Government Money Market Mutual Funds, bonds or other obligations of the Borough orbonds or other obligations of the school districts which are a part of the Borough or school districts located within theBorough, Local Government investment pools, and agreements for the repurchase of fully collateralized securities, iftransacted in accordance with NJSA 40A:5-15.1 (8a-8e). In addition, the Borough is permitted to invest LOSAP Fundswith the types of eligible investments authorized in NJAC 5:30-14.19. LOSAP investments include interest bearingaccounts or securities, in which savings banks of New Jersey are authorized to invest their funds, New Jersey CashManagement Fund, fixed and variable individual or group annuity contracts, mutual fund shares or fixed and variablelife insurance contracts.

As ofDecember 31,2009 and 2008, the Borough had the following investments:Fair Value(LOSAP)

Investment:Lincoln Financial Group LOSAPInvestment Fund (Unaudited)

26

$ 566,324 ~$~~~3;;,;92;:,;,6;;,;1~6


NOTE 2 DEPOSITS AND INVESTMENTS (Continued)

Custodial Credit Risk - Investments - For an investment, this is the risk, that in the event of the failure of thecounterparty, the Borough will not be able to recover the value of its investments or collateral securities that are heldby an outside party. The Borough does not have a policy for custodial risk. As of December 31, 2009 and 2008,$566,324 and $392,616 of the Borough's investments was exposed to custodial credit risk as follows:

Fair Value(LOSAP)

Uninsured and Collateralized:

Collateral held by pledging financial institution's trust departmentbut not in the Borough's name (unaudited) $ 566,324 ;;;..$~~;;;..39:;;;2",,6:;;;1~6

Interest Rate Risk - The Borough does not have a formal investment policy that limits investment maturities as ameans of managing it's exposure to fair value losses arising from increasing interest rates.

Credit Risk - State law limits investments as noted above (N.J.S.A. 40A:5-15.1). The Borough does not have aninvestment policy that would further limit its investment choices. As of December 31, 2009 and 2008, theBorough's investment in Lincoln Financial Group was rated Baa2 and Baa2, respectively, by Moody's InvestorsServices.

Concentration of Credit Risk - The Borough places no limit in the amount the Borough may invest in anyoneissuer. More than five (5) percent of the Borough's investments are in Lincoln Financial Group. Theseinvestments are 100% of the Borough's total investments.

The fair value of the above-listed investments were based on quoted market prices by Lincoln Financial Group.

Interest earned in the General Capital Fund, Animal Control Fund and certain Other Trust Funds are assigned to theCurrent Fund in accordance with the regulatory basis of accounting.

NOTE 3 TAXES RECEIVABLE

Receivables at December 31, 2009 and 2008 consisted of the following:

CurrentProperty Taxes mU21 $53.6,348

In 2009 and 2008, the Borough collected $527,041 and $582,703 from delinquent taxes, which represented 98% and99% of the prior year delinquent taxes receivable balance.

27


NOTE 4 MUNICIPAL DEBT

The Local Bond Law governs the issuance of bonds and notes used to finance capital expenditures. General obligationbonds have been issued for the general capital fund. All bonds are retired in serial installments within the statutoryperiod of usefulness. Bonds issued by the Borough are general obligation bonds, backed by the full faith and credit ofthe Borough. Bond anticipation notes, which are issued to temporarily finance capital projects, must be paid off withinten years and four months or retired by the issuance ofbonds.

The Borough's debt is summarized as follows:

IssuedGeneral

Bonds, Notes and Loans

Less Funds Temporarily Held to Pay Bondsand Notes

Net Debt Issued

Authorized But Not IssuedGeneral

Bonds and Notes

$ 8,690,181 $

346,151

8,344,030

3,153,593

10,028,729

771,435

9,257,294

2,114,154

Net Bonds and Notes Issued and AuthorizedBut Not Issued $ 11,497,623 ;:;.$~~1.:;1,~37;.;1~,4~4~8

The statement of debt condition that follows is extracted from the Borough's Annual Debt Statement and indicates astatutory net debt of .88% and .88% at December 31, 2009 and 2008, respectively.

Gross Debt Deductions Net Debt2009General Debt $ 11,843,774 $ 346,151 $ 11,497,623

School Debt 2,309,655 2,309,655

Total $ 14,153,429 $ 2,655,806 $ 11,497,623

28


NOTE 4 MUNICIPAL DEBT (Continued)Gross Debt Deductions Net Debt

2008General Debt $ 12,142,883 $ 771,435 $ 11,371,448

School Debt 2,584,656 2,584,656

Total $ 14,727,539 $ 3,356,091 $ 11,371,448

The Borough's remaining borrowing power under N.J.S. 40A:2-6, as amended, at December 31, was as follows:

3-1/2% of Equalized Valuation Basis (Municipal)Net Debt

$ 45,487,820 $11,497,623

45,008,18511,371,448

Remaining Borrowing Power $ 33,990,197 ;:;.$~,;;,:33~,6:;,;3,;;,,6,,;;;73;,;.7

The Borough's long-term debt consisted of the following at December31:

General Obligation Bonds

The Borough levies ad valorem taxes to pay debt service on general obligation bonds. General obligation bondsoutstanding at December 31 are as follows:

$2,710,000,1999 Bonds, due in annualinstallments of $135,000 to $180,000through August 2017, interest at 5.00%

(Refunded by 2009 Refunding Bond)

$3,726,000,2002 Bonds, due in annualinstallments of $200,000 to $320,000through August 2016, interest at 4.00% to 4.60%

$1,815,000,2003 Refunding Bonds, due in an annual

installments of$215,000 through August 2009,

interest at 3.00% to 3.25%

$1,650,000, 2009 Refunding Bonds, due in annual

installments of$180,000 to $200,000

through August 2017, interest at 3.00% to 4.00%

$ 2,236,000

1,520,000

$ 1,610,000

2,516,000

215,000

$

29

3,756,000 ~$~~4,,,,3~41,,,,0;.;0c;;.0


NOTE 4 MUNICIPAL DEBT (Continued)

General Intergovernmeutal Loans Payable

The Borough has entered into loan agreements with the State of New Jersey for the financing relating to the Borough'sWetlands Acquisition Project and the mdian Lake Project, respectively. The Borough levies ad valorem taxes to paydebt service on general intergovernmental loans issued. General intergovemmentalloans outstanding at December 31are as follows:

$210,462, 2000 Loan due in Semi-annualinstallments of$6,544 through May, 2018,

interest at 2.00%

$122,710,2000 Loan due in Semi-annualinstallments of $3,815 throughJuly 2019, interest at 2.00%

$ 101,833 $

68,848

112,720

75,009

$ 170,681 ;;.$~~.;,1;;;.87~, 7;...;2;;;.9

The Borough's principal and interest for long-term debt issued and outstanding as ofDecember 31, 2009 is as follows:

Calendar General Green Acres LoanYear Principal Interest Principal mterest Total

2010 $ 520,000 $ 138,586 $ 17,391 $ 3,327 $ 679,3042011 515,000 119,386 17,740 2,978 655,1042012 515,000 100,336 18,097 2,621 636,0542013 510,000 81,086 18,461 2,257 611,8042014 510,000 60,486 18,832 1,886 591,204

2015-2019 1,186,000 63,204 80,160 3,796 1,333,160

Total $ 3,756,000 $ 563,084 $ 170,681 $ 16,865 $ 4,506,630

30



Changes in Long-Term Municipal Debt

The Borough's long-term capital debt activity for the years 2009 and 2008 were as follows:

Balance, Balance, Due

December 31, December 3I , Within

2008 Additions Reductions 2009 One Year

2009General Capital Fund

Bonds Payable $ 4,341,000 $ 1,650,000 $ 2,235,000 $ 3,756,000 $ 520,000Intergovernmental Loans Payable 187,729 17,048 170,681 17,391

General Capital Fund Long-TermLiabilities $ 4,528,729 $ 1,650,000 $ 2,252,048 $ 3,926,681 $ 537,391

Balance,

December 31,

2007 Additions Reductions

Balance,

December 31,

2008

Due

Within

One Year

2008General Capital Fund

Bonds PayableIntergovernmental Loans Payable

$ 4,986,000204,441

$ 645,000 $16,712

4,341,000 $187,729

625,00017,048

General Capital Fund Long-TennLiabilities

Short-Term Debt

$ 5,190,441 ;:;.$~~~ $ 661,712 $ 4,528,729 $ 642,048

The Borough's short-term capital debt activity for the years 2009 and 2008 was as follows:

Balance,

December 31,


Balance,

December 31,

2009

2009Bond Anticipation Notes

General Capital Fund $ 5,500,000 $ 4,763,500 $ 5,500,000 $ 4,763,500

31



Short-Term Debt (Continued)

Balance,December 3I,


Balance,December 3I ,

20082008Bond Anticipation Notes

General Capital Fund $ 3,808,000 $ 5,500,000 $ 3,808,000 $ 5,500,000

In addition to the debt shown in the above schedule, municipalities may issue debt to finance emergency or specialemergency appropriations or to meet cash flow needs (Tax Anticipation Notes) to temporarily finance operatingexpenditures. This debt which is not included in the Borough's statutory debt limit calculation is reported in theCurrent Fund for the years 2009 and 2008 as follows:




20092009Special Emergency Notes $ 46,000 ;;;",$ _ $ 46,000 ;;;",$ ~



Balance,December 31,

20082008Special Emergency Notes $ 92,000 $

32

46,000 $ 92,000 ;;;",$_~46"",0""0,,,,0


NOTE 5 FIXED ASSETS

General Fixed Assets

The following is a summary of changes in the general fixed assets account group for the years 2009 and 2008.

Balance Balance,December 31, December 3 I,

2008 Additions Retirements 2009

2009

Land $ 7,879,746 $ 7,879,746

Buildings and Building Improvement 16,886,802 16,886,802

Machinery and Equipment 3,288,645 $ 108,420 3,397,065

$ 28,055,193 $ 108,420 $ $ 28,163,613

Balance Balance,

December 31, December 31,2007 Additions Retirements 2008

2008Land $ 7,879,746 $ 7,879,746

Buildings and Building Improvement 16,886,802 16,886,802

Machinery and Equipment 3,133,941 $ 280,337 $ 125,633 3,288,645

$ 27,900,489 $ 280,337 $ 125,633 $ 28,055,193

33


NOTE 6 DUE TO/FROM OTHER FUNDS

As of December 31, interfund receivables and payables that resulted from various interfund transactions were asfollows:

2009 2008Due from Due to Due from Due to

Other Funds Other Funds Other Funds Other Funds

Current Fund $ 2,012 $ 244,495 $ 11,234 $ 330,616

Trust FundsAnimal Control Fund 1,838 11,234

Other Trust Fund 244,495 2,811 256,175 2,811

Community Development Trust Fund 100 200 100 200General Capital Fund 2,911 174 77,352

Total $ 249,518 $ 249,518 $ 344,861 $ 344,861

The above balances are the result of expenditures being paid by one fund on behalf of another and/or receipts beingdeposited in one fund on behalf of another fund.

The Borough expects all interfund balances except the balance between Current Fund and Other Trust Fund (Reservefor Accumulated Leave Compensation) to be liquidated within one year.

NOTE 7 FUND BALANCES APPROPRIATED

Under the regulatory basis of accounting, fund balances in the Current Fund and Utility Operating Fund(s) arecomprised of cash surplus (fund balance) and non-cash surplus (fund balance). All or part of cash surplus as ofDecember 31 may be anticipated in the subsequent year's budget. The non-cash surplus portion of fund balance may beutilized in the subsequent year's budget with the prior written consent of the Director of the Division of LocalGovernment Services if certain guidelines are met as to its availability. Fund balances at December 31, which wereappropriated and included as anticipated revenue in their own respective fund's budget for the succeeding year were asfollows:

Current FundCash SurplusNon-Cash Surplus

FundBalance

December 31,

2009

$ 1,338,485118,186

$ 1,456,671

Utilized

in SubsequentYear's Budget

$ 1,250,000

$ 1,250,000

FundBalance

December 3I,

2008

$ 1,595,417135,469

$ 1,730,886

Utilized

in SubsequentYear's Budget

$ 1,500,000

$ 1,500,000

The above fund balance amounts appropriated represents the surplus anticipated in the 20 I0 introduced municipalbudget. The 2010 municipal budget has not been legally adopted as of the date of audit.

34


NOTE 8 DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS

Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, the followingdeferred charges are reported on the balance sheets of the following funds:

THERE ARE NONE.

Balance,December 3 I ,

Subsequent Year

BudgetAppropriation

Balance to

SucceedingBudgets

2008Current Fund

Special Emergency - Tax Map $

Special Emergency - RevaluationSpecial Emergency - Codification of Ordinances

$

NOTE 9 COMPENSATED ABSENCES

11,600 $46,00010,000

67,600 $

11,60046,00010,000

67,600 ~$ ~

Under the existing policies and labor agreements of the Borough, employees are allowed to accumulate (with certainrestrictions) unused vacation benefits and sick leave over the life of their working careers and to redeem such unusedleave time in cash (with certain limitations) upon death, retirement or by extended absence immediately precedingretirement.

It is estimated that the current cost of such unpaid compensation and salary related payments would approximate$1,237,339 and $1,162,993 at December 31, 2009 and 2008, respectively. These amounts which is are consideredmaterial to the financial statements, are not reported either as an expenditure or liability.

As of December 31, 2009 and 2008, the Borough has reserved $227,896 and $238,763, respectively to fundcompensated absences in accordance with NJSA 40A:4-39,

NOTE 10 EMPLOYEE RETIREMENT SYSTEMS

The State of New Jersey sponsors and administers the following contributory defined benefit public employeeretirement systems (retirement systems) covering substantially all state and local government employees whichincludes those Borough employees who are eligible for pension coverage.

35


NOTE 10 EMPLOYEE RETIREMENT SYSTEMS (Continned)

Consolidated Police and Firemen's Pension fnnd (CPFPF) - established in January 1952, under the provisions ofN.J.S.A. 43:16 to provide coverage to municipal police and firemen who were appointed prior to July I, 1944. Thefund is a closed system with no active members.

Police and Firemen's Retirement System (PFRS) - established in July 1944, under the provisions of NJ.S.A.43:16A to provide coverage to substantially all full time county and municipal police or firemen and State firemenappointed after June 30, 1944. Membership is mandatory for such employees with vesting occurring after 10 yearsofmembership.

Pnblic Employees' Retirement System (PERS) - established in January 1955, under the provisions ofN.J.S.A.43:15A to provide coverage, including post-retirement healthcare for those eligible employees whose localemployers elected to do so, to substantially all full-time employees of the State or any county, municipality, schooldistrict, or public agency provided the employee is not a member of another State-administered retirement system.Membership is mandatory for such employees and vesting occurs after 8 to 10 years of service for pension benefitsand 25 years for post-retirement healthcare coverage.

The State of New Jersey sponsors and administers the following defined contribution public employee retirementprogram covering certain state and local government employees which include those Borough employees who areeligible for pension coverage.

Defined Contribntion Retirement Program (DCRP) - established under the provisions of Chapter 92, P.L. 2007and Chapter 103, P.L. 2008 to provide coverage to elected and certain appointed officials, effective July I, 2007.Membership is mandatory for such individuals with vesting occurring after one (I) year ofmembership.

Other Pension Fnnds

The state established and administers a Supplemental Annuity Collective Trust Fund (SACT) which is available toactive members of the State-administered retirement systems to purchase annuities to supplement the guaranteedbenefits provided by their retirement system. The state or local governmental employers do not appropriate funds toSACT.

The State also administers the Pensions Adjustment Fund (PAF) whicli provides cost of living increases, equal to 60percent of the change in the average consumer price index, to eligible retirees in some State-sponsored pensionsystems which includes the CPFPF. This benefit is funded by the State as benefit allowances become payable.

The cost of living increase for PFRS and PERS are funded directly by each of the respective systems and areconsidered in the annual actuarial calculation of the required contributions for the system.

According to state law, all obligations of each retirement system will be assumed by the State of New Jersey shouldany retirement system be terminated.

The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly availablefinancial reports that include the financial statements and required supplementary information of each of the abovesystems, funds, and trust. The financial reports may be accessed via the New Jersey Division of Pensions andBenefits website at }'LWW.state.n j,usi1r:,asJ'D'l""Dsion.

36


NOTE 10 EMPLOYEE RETIREMENT SYSTEMS (Continned)

Basis of Acconnting

The financial statements of the retirement systems are prepared on the accrual basis of accounting. Employercontributions are recognized when payable to the retirement systems. Benefits or refunds are recognized when dueand payable in accordance with the terms of the retirement systems.

Investment Valnation

Investments are reported at fair value. Securities traded on a national or international exchange are valued at the lastreported sales price at current exchange rates. Mortgages are valued on the basis of future principal and interestpaymcnts, and are discounted at prevailing interest rates for similar instruments. The fair value of real estateinvcstments is based on independent appraisals. Investments that do not have an established market are reported atestimated fair values.

The State of New Jersey, Department of the Treasury, Division of Investment, issues publicly available financialreports that include the financial statements of the State of New Jerscy Cash Management Fund, Common PensionFund A, Common Pension Fund B, Common Pension Fund D and Common Pension Fund E. The financial reportsmay be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Investment, P.O.Box 290, Trenton, New Jersey 08625-0290.

Significant Legislation

P.L. 2009, c. 19, effective March 17, 2009 provides an option for local employers to contribute 50 percent of thenormal and accrued liability contribution amounts certified by the PERS and PFRS for payments due in State fiscalyear 2009. This law also provides that a local employer may pay 100 percent of the required contribution. Such anemployer will be credited with the full payment and any such amounts will not be included in their unfundedliability. The actuaries for PERS and PFRS will determine the unfunded liability of those retirement systems, byemployer, for the reduced normal and accrued liability contributions provided under this law. This unfundedliability will be paid by the employer in level annual payments over a period of 15 years beginning with thepayments due in the State fiscal year ending June 30, 2012 and will be adjusted by the rate of return on the actuarialvalue of assets.

PL. 2008, c. 89, effective November 1,2008, increased the PERS eligibility age for unreduced benefits from age 60to age 62 for members hired on or after November I, 2008; changed the early retirement provisions; increased theminimum annual compensation required for membership eligibility for new members on or after the effective date ofthis law.

P.L. 2007, c. 103, certain parts effective July 1,2007, provided for the following: changed contribution rates ofPERS and Defined Contribution Retirement Program (DCRP) to 5.5 percent of annual compensation; imposed anannual maximum wage contribution base and a new retirement age to new employees; implemented changes to StateHealth Benefits Program (SI-IBP) which included the creation of the School Employees' Health Benefit Program(SEHBP) and established an employee contribution of 1.5 percent of the employee's base salary.

37


NOTE 10 EMPLOYEE RETIREMENT SYSTEMS (Continued)

Funded Status and Funding Progress

As of June 30, 2008, the most recent actuarial valuation date, the aggregate funded ratio for all the Stateadministered retirement systems, including PERS and PFRS, is 72.6 percent with an unfunded actuarial accruedliability of $34.4 billion. The aggregate funded ratio and unfunded accrued liability for the State-funded systems is69.6 percent and $23.0 billion, and the aggregate funded ratio and unfunded accrued liability for local PERS andPFRS is 77.2 percent and $11.4 billion.

The funded status and funding progress of the retirement systems is based on actuarial valuations which involveestimates of the value of reported amounts and assumptions about the probability of events far into the future.These amounts are subject to continual revision as actual results are compared to past expectations and newestimates are made about the probability of future events.

Actuarial calculations reflect a long-term perspective and are based on the benefits provided under the terms of theretirement systems in effect at the time of each valuation and also consider the pattern of the sharing of costsbetween the employer and members at that point in time. The projection of benefits for financial reporting purposesdoes not explicitly incorporate the potential effects of legal or contractual limitations on the pattern of cost sharingbetween the employer and members in the future.

Actuarial Methods and Assumptions

In the June 30, 2008 actuarial valuation, the projected unit credit was used as the actuarial cost method, and the fiveyear average of market value was used as the asset valuation method for the retirement systems. The actuarialassumptions included (I) 8.25 percent for investment rate of return for all the retirement systems except CPFPF; and(2) 5.45 percent for projected salary increases for all the retirement systems except PFRS.

Employer and Employee Pension Contributions

The contribution policy is set by laws of the State of New Jersey and contributions are required by active membersand participating employers. Plan members and employer contributions may be amended by State of New Jerseylegislation, with the amount of contributions by the State of New Jersey contingent upon the annual AppropriationsAct. As defined, the various retirement systems require employee contributions based on 5.5% for PERS, 8.50% forPFRS and 5.5% for DCRP of employees' annual compensation.

Annual Pension Cost (APC)

Per the requirements of GASB Statement No. 27 for the year ended June 30, 2009 for CPFPF, which is a costsharing plan with special funding situations, the annual pension cost differs from the annual required contribution.For PFRS and PERS, which are cost sharing multi-employer defined benefit pension plans, annual pension costequals contributions made. However, due to the enactment of P.L. 2009, c.19, the Borough opted to contribute aPFRS and PERS amount that reflected a 50 percent reduction of the normal and accrued liability component of thePFRS and PERS obligations due in the year ended December 31, 2009. The unpaid or deferred amount of $293,734for PFRS and $60,046 for PERS will be paid with interest starting in the 2012 year over a 15 year period. TheBorough is allowed to payoff the deferred pension obligations at any time. In the DCRP, which is a definedcontribution plan, member contributions are matched by a 3% employee contribution.

38


NOTE 10 EMPLOYEE RETIREMENT SYSTEMS (Continued)

Annual Pension Cost (APC) (Continued)

During the years ended December 31, 2009, 2008 and 2007, the Borough, except for the amounts defen-ed duringthe year ended December 31, 2009, was required to contribute for normal cost pension contributions the followingamounts which equaled the required contributions for each year:

Year EndedDecember 31 CPFPF PFRS PERS DCRP

2009 $ 100 $ 318,799 $ 75,959 $ 1,1192008 43 561,374 88,7892007 77 363,339 64,434

NOTE 11 POST-RETIREMENT MEDICAL BENEFITS

The State of New Jersey sponsors and administers the post-retirement health benefit program plans for participatingmunicipalities including the Borough. The Plans are cost-sharing multiple employer-defined benefit plans.

As a result of implementing Governmental Accounting Standards Board (GASB) Statement No. 43, FinancialReporting for Post-employment Benefit Plans Other than Pension Plans (OPEB), effective for Fiscal Year 2007, theState Health Benefits Program (SHBP), and the Prescription Drug Program (PDP), and Post-Retirement Medical (PRM)of the PERS and the Teachers Pension and Annuity (TPAF) are combined and reported as Pension and Other EmployeeBenefit Trust Funds in the State's Comprehensive Annual Financial Report (CAFR). Specifically, SHBP-State, PDPState, and the PRM of the PERS are combined and reported as a--fufltl Health Benefits Program Fund - State Class. TheSHBP-Local, PDP-Local, and the PRM of the TPAF are combined and reported as a separate fund (Health BenefitsProgram Fund -Local) in the State's CAFR. The post-retirement benefit programs had a total of4M 484 state and localparticipating employers and contributing entities for Fiscal Year 2009.

The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly availablefinancial reports that include the financial statements and required supplementary information of each of the aboveFunds. The financial reports may be assessed via the New Jersey Division of Pensions and Benefits website atwww.state.nj.us/treasury/pensions.

Basis of Accounting

The financial statements of the health benefit programs are prepared on the accrual basis of accolmting. Employercontributions are recognized when payable to the health benefit programs. Benefits or refunds are recognized when dueand payable in accordance with the terms of the health benefit programs.

Investment Valuation

Investments are reported at fair value. Investments that do not have an established market are reported at estimated fairvalues.

39


NOTE 11 POST-RETIREMENT MEDICAL BENEFITS (Continned)

Fnnded Statns and Fnnding Progress

As of June 30, 2008, the most recent actuarial valuation date, the State had a $55.9 billion unfunded actuarial liabilityfor other postemployment benefits (OPEB) which is made up of $19.8 billion for state active and retired members and$36.1 billion for education employees and retirees that become the obligation of the State of New Jersey uponretirement.

The funded status and funding progress of the OPEB is based on actuarial valuations which involve estimates of thevalue of reported amounts and assumptions about the probability of events in the future. These amounts are subject tocontinual revision as actual results are compared to past expectations and new estimates are made about the probabilityof future events.

Actuarial calculations reflect a long-term perspective and are based on the benefits provided under the terms of theOPEB in effect at the time of each valuation and also consider the pattern of the sharing of costs between the employerand members at the point in time. The projection of benefits for financial reporting purposes does mot explicitlyincorporate the potential effects of legal contractual funding limitations on the pattern of cost sharing between theemployer and members in the future.

Actuarial Methods and Assumptions

In the June 30, 2008 actuarial valuation, the projected unit credit was used as the actuarial cost method, and the marketvalue was used as asset valuation method for the OPEB. The actuarial assumptions included 4.50 percent forinvestment rate ofreturn for the OPEB.

Post-Retirement Medical Benefits Contribntion

P.L. 1987, c. 384 and P.L. 1990, c.6 required the Public Employees' Retirement System to fund post-retirement medicalbenefits for those State and participating local government employees who retire after accumulating 25 years of creditedservice or on a disability retirement. As of June 30, 2009, there were 84,590 retirees receiving post-retirement medicalbenefits. The cost of these benefits is funded through contributions by the State and participating local governments inaccordance with PL. 1994, c.62. Funding of post-retirement medical benefits changed from a pre-funding basis to apay-as-you-go basis beginning in fiscal year 1994.

P.L. 1977, c. 136 provides for the State and participating local governments to pay health benefits on a pay-as-you-gobasis for all enrolled retired employees, regardless of retirement date, under two provisions. The first is for employeeswhose pensions are based on 25 years or more of credited service (except those who elect a deferred retirement). Thesecond is for retired employees who are eligible for a disability retirement regardless of years of service. The State andparticipating local governments contributed $87.0 million for 7,255 eligible retired members for fiscal year 2009.

40


NOTE 11 POST-RETIREMENT MEDICAL BENEFITS (Continued)

P.L. 1997, c. 330 provides paid post-retirement health benefits to qualified retirees of the Police and Firemen'sRetirement System and the Consolidated Police and Firemen's Pension Fund and to dependents of qualified retirees.The State and participating local governments are responsible for 80 percent of the premium for the category ofcoverage elected by the retiree under the State managed care plan or a health maintenance organization participating inthe program, whichever provides the lower charge. The State and participating local governments contributed $24.4million in fiscal year 2009 to provide benefits under Chapter 330 to qualified retirees.

The State sets the employer contribution rate based on a pay-as-you-go basis rather than the annual requiredcontribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASBStatement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costeach year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceedthirty years. The Borough's contributions to the State Health Benefits Program Fund for post-retirement benefits for theyears ended December 31, 2009 and 2008 were $257,503 and $133,897, respectively, which equaled the requiredcontributions for each year. The contribution for the year 2007 was not available. During the year ended 2007, theBorough previously provided post-retirement medical benefits to its eligible retirees through a single-employee definedbenefit plan administered by the Borough. The Borough joined the New Jersey State Health Program effective June 1,2008.

NOTE 12 RISK MANAGEMENT

The Borough is exposed to various risks of loss related to general liability, automobile coverage, theft of, damage to anddestruction of assets; errors and omissions; injuries to employees; termination of employees and natural disasters. TheBorough has obtained commercial insurance coverage to guard against these events to minimize the exposure to theBorough should they occur.

The Borough of Little Ferry is a member of the Bergen County Municipal Joint Insurance Fund (BJIF), South BergenMunicipal Joint Insurance Fund (SBJIF), and Municipal Excess Liability Joint Insurance Fund (MEL). The jointinsurance funds are both an insured and self-administered group of municipalities established for the purpose ofinsuring against property damage, general liability, motor vehicles and equipment liability and worker's compensation.The Funds are risk-sharing public entity pools. The BJIF, SBJIF and MEL coverage amounts are on file with theBorough.

The relationship between the Borough and respective insurance funds is governed by a contract and by-laws that havebeen adopted by resolution of each unit's governing body. The Borough is contractually obligated to make all annualand supplementary contributions to the insurance funds, to report claims on a timely basis, to cooperate with themanagement of the funds, its claims administrator and attorneys in claims investigation and settlement, and to followrisk management procedures as outlined by the funds. Members have a contractual obligation to fund any deficit of thefunds attributable to a membership year during which the municipality was a member.

41


NOTE 12 RISK MANAGEMENT (Continued)

The funds provide its members with risk management services, including the defense of and settlement of claims, andestablished reasonable and necessary loss reduction and prevention procedures to be folIowed by the members.Complete financial statements of the funds can be obtained by contacting the respective fund's Treasurer.

There has been no significant reduction in insurance coverage from the previous year nor have there been anysettlements in excess of insurance coverage in any of the prior three years.

The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the "BenefitReimbursement Method". Under this plan the Borough is required to reimburse the New Jersey Unemployment TrustFlmd for benefits paid to its former employees and charged to its account with the State. The Borough is billedquarterly for amounts due to the State. The folIowing is a summary of Borough contributions, employee contributions,reimbursements to the State for benefits paid and the ending balance of the Borough's unemployment compensationtrust fund for the current and previous two years:

Year EndedDecember 31

AmountReimbursed

200920082007

NOTE 13 CONTINGENT LIABILITIES

$ 30,49729,50028,000

The Borough is a party defendant in some lawsuits, none of a kind unusual for a municipality of its size and scope ofoperation. In the opinion of the Borough's Attorney, the potential claims against the Borough not covered by insurancepolicies would not materialIy affect the financial condition of the Borough.

Pending Tax Appeals - Various tax appeal cases were pending in the New Jersey Tax Court at December 31, 2009 and2008. Amounts claimed have not yet been determined. The Borough is vigorously defending its assessments in eachcase. Under the accounting principles prescribed by the Division of Local Government Services, Department ofcommunity Affairs, State of New Jersey, the Borough does not recognize a liability, if any, until these cases have beenadjudicated. The Borough expects such amounts, if any, could be material. As of December 31, 2009 and 2008, theBorough reserved $25,499 and $25,499, respectively in the Current Fund for tax appeals pending in the New Jersey TaxCourt. Funding ofany ultimate liability would be provided for in succeeding years' budget or from fund balance.

Federal and State Awards - The Borough participates in a number of federal and state programs that are fulIy orpartialIy funded by grants received from other governmental units. Expenditures financed by grants are subject to auditby the appropriate grantor government. If expenditures are disalIowed due to noncompliance with grant programregulations, the Borough may be required to reimburse the grantor government. As of December 31, 2009 and 2008,significant amounts of grant expenditure have not been audited by the various grantor agencies but the Boroughbelieves that disalIowed expenditures, if any, based on subsequent audits wilI not have a material effect on the overalIfinancial position ofthe Borough.

42


NOTE 14 FEDERAL ARBITRAGE REGULATIONS

The Borough is subject to Section 148 of the Internal Revenue Code as it pertains to the arbitrage rebate on all taxexempt obligations, both long and short-term debt. Under the 1986 Tax Reform Act, the Internal Revenue Service(IRS) required that all excess earnings from investment proceeds be rebated to the IRS. Arbitrage, for purposes oftheseregulations, is defined as the difference between the yield on the investment and the yield on the obligations issued. Ifthere are excess earnings, this amount may be required to be rebated to the IRS. At December 31, 2009 and 2008, theBorough has not estimated its estimated arbitrage earnings due to the IRS, if any.

NOTE 15 LENGTH OF SERVICE AWARD PROGRAM (LOSAP)-UNAUDITED

The Borough of Little Ferry Length of Service Award Program (the Plan) was created by a Borough ordinanceadopted on August 8, 2000 pursuant to 457 (e)(ll)(13) of the Internal Service Code of 1986, as amended, except forprovisions added by reason of the Length of Service Award Program as enacted into federal law in 1997. The votersof the Borough of Little Ferry approved the adoption of the Plan at the general election held on November 7, 2000.

The first year of eligibility for entrance into the Plan was calendar year 2001. The tax deferred income benefits foremergency services volunteers, consisting of the Volunteer Fire Department and the First Aid Organization, comefrom contributions made solely by the Borough on behalf of those volunteers who meet the criteria of a plan createdby the governing body.

If an active member meets the year of active service requirement, a LOSAP must provide a benefit between theminimum contribution of $100 and a maximum contribution of $1,150 per year. While the maximum amount isestablished by statute, it is subject to periodic increases that are related to the consumer price index (N.J.S.A.40A:14-l85(f). The Division of Local Government Services issues the permitted maximum increase annually.

The Borough of Little Ferry has contributed $1,248 and $1,248 for 2009 and 2008, respectively, for each eligiblevolunteer fire department member and volunteer first aid squad members into the Plan.

In accordance with the amendments to Section 457 of the Internal Revenue Code and the State Deferred RevenueRegulations, the Borough has placed the amounts deferred, including earnings, in a trust for the exclusive benefit ofthe plan participants and their beneficiaries.

All earnings, dividends and other distributions of the account shall be automatically reinvested.

Vesting and Benefits

A volunteer is eligible to receive a distribution of funds upon completing 5 (five) cumulative years as an activemember of the volunteer organization. Certain restrictions and tax implications may result in the event of awithdrawal of funds from the Plan.

If a volunteer member does not vest and terminates their association with the emergency service organization, thefunds are returned to the sponsoring agency's surplus.

43


NOTE 15 LENGTH OF SERVICE AWARD PROGRAM (LOSAP)-UNAUDITED (Continued)

Reporting Requirements

The New Jersey Administrative Code NJAC 5:30-14.49 requires that the Borough perfonn a separate review report ofthe plan in accordance with the American Institute of Certified Public Accountants (AICPA) Statements on Standardsfor Accounting and Auditing Review Services. Since a review does not constitute an audit, the financial statementspertaining to the Plan are presented as unaudited in this report as part of the Borough's Trust Fund.

NOTE 16 DEFERRED SCHOOL TAXES

Regulations provide for the deferral of not more than 50% of the annual levy when school taxes are raised for a schoolyear and have not been requisitioned by the school district.

2009 2008Local District Local District

School School

Balance of Tax $ 7,764,997 $ 7,727,317

Deferred 5,455,244 4,955,244

Taxes Payable $ 2,309,753 $ 2,772,073

NOTE 17 CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS

As ofDecember 31, the Borough had the following commitments with respect to unfinished capital projects:

Capital Project2009Improvements to MerhofParkRenovation Police Dispatch AreaL.L. Boys' Club Field Repair

2008Improvements to Merhof ParkWashington Ave. Sewer Replacement

44

ConstructionCommitment

$31,17789,64517,826

108,48866,207

EstimatedDate of

Completion

201020102010

20092009


NOTE 18 DEFEASANCE OF DEBT

Current Refunding

On June 30, 2009, the Borough issued $1,650,000 in General Obligation Refunding Bonds having an interest rate of3.00% to 4.00%. These Bonds were issued in order to currently refund certain principal maturities of GeneralImprovement Bonds of the Borough. The total principal currently refunded was $1,610,000. This current refundingresulted in the issuance of an additional $40,000 in bonds and resulted in an increase of cash flows over the life of thesebonds issues in the amount $93,410; however, the economic gain (difference between the present value ofthe old andnew debt service payments) was $93,336. The current refunding was undertaken to reduce total debt service paymentsover the next 7 years by $93,410.

NOTE 19 SUBSEQUENT EVENTS

Bond Anticipation Notes

On April 29, 2010, the Borough issued Bond Anticipation Notes in the amount of $5,500,000 to temporarily financeexpenditures related to various capital projects. The Borough has awarded the sale of said notes at an interest rate of0.97%. These notes dated May 7, 2010 will mature on September 7, 2010.

Debt Anthorized

On June I, 2010, the Borough adopted a Bond Ordinance authorizing the issuance of $405,000 in Bonds or BondAnticipation Notes to fund improvements to Franklin Street. As of the date of this report, the Borough has not issuednor awarded the sale of said bonds or notes.

On June 1, 2010, the Borough adopted a bond ordinance authorizing the issuance of $20,900 in Bonds or BondAnticipation Notes to fund the construction of certain sidewalks. As of the date of this report, the Borough has notissued nor awarded the sale of said bonds or notes.

Refnnding Bonds

On June 16,2010, the Borough adopted an ordinance for the issuance of $2,000,000 Refunding Bonds for the purposeof refunding all or a part of the Borough's $1,596,000 General Improvement Bonds dated October 1,2002. As of thedate of this report, the Borough has not issued nor awarded the sale of said bonds.

45

CURRENT FUND

BOROUGH OF LITTLE FERRYSTATEMENT OF CURRENT CASH - TREASURER

Balance, December 31, 2008

Increased by Receipts:Tax CollectorRevenue Accounts ReceivableMiscellaneous Revenue Not AnticipatedDue from State of New Jersey - Senior

Citizens! and Veterans' DeductionsReserve for Grants - UnappropriatedGrant ReceiptsReceipts from Animal Control FundReceipts from General CapitalReceipts Due to Current Fund

Decreased by Disbursements:2009 Budget Appropriations2008 Appropriation ReservesMiscellaneous ReservesAccounts PayableCounty Taxes PayableLocal District School Taxes PayableSpecial Emergency NotesOther Trust Fund Expenditures Paid by Current FundGeneral Capital Fund Expenditures Paid by Current FundReserve for Grants AppropriatedTax OverpaymentsRefund of Prior Year Revenue


STATEMENT OF CURRENT CASH - COLLECTOR

EXHIBIT A-4

$ 6,350,664

$ 26,832,1282,145,585

242,935

89,13922,323

137,90011,234

472,630177,713

30,131,587

36,482,251

11,562,291401,481

6,5181,497

2,521,27515,437,929

46,00010,867

715,957201,617

30,3931,040

30,936,865

$ 5,545,386

EXHIBIT A-5

Increased by Receipts:Taxes ReceivableRevenue Accounts Receivable2010 Prepaid TaxesTax Overpayments

Decreased by Disbursements:Payments to Treasurer

46

$ 26,255,679114,565431,491

30,393$ 26,832,128

$ 26,832,128

EXHIBIT A-6

BOROUGH OF LITTLE FERRYSTATEMENT OF GRANTS RECEIVABLE

Balance, Balance,December 31, Realized Cash December 31,

2008 2009 Receipts 2009

Municipal Alliance $ 6,700 $ 11,017 $ 6,700 $ 11,017NJ Meadowlands Commission Grant 42,169 42,169NJ Meadowlands Commission-Fair Housing 25,000 25,000NJ Meadowlands Commission-MAP 120,000 120,000Clean Communities 11,200 11,200Smart Future Planning Grant 40,000 40,000

$ 113,869 $ 142,217 $ 137,900 $ 118,186

EXHIBIT A-7STATEMENT OF DUE TO STATE OF NEW JERSEY

SENIOR CITIZENS' AND VETERANS' DEDUCTIONS


Increased by:Cash Received from State2008 Senior Citizens' Deductions Disallowed

Decreased by:Senior Citizens' Deductions Per Tax BillingsVeterans' Deductions Per Tax Billings


47

$ 89,139250

30,50065,500

$

$

24,087

89,389

113,476

96,000

17,476

BOROUGH OF LITTLE FERRYSTATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY

Senior Senior

Citizens' and Citizens' and

Balance, Added Veterans' Veterans' Balance,

December 31, Tax Tax Deductions Collected In Deductions December 31,

Year 2008 1= Levv Disallowed 2008 2009 Allowed Cancelled 2009

2008 $ 536,348 $ 145 $ 250 $ 527,041 $ 9,7022009 $ 27,178,673 69,033 427,101 25,728,638 96,000 453,448 542,519

$ 536,348 $ 27,178,673 $ 69,178 $ 250 $ 427,101 $ 26,255,679 $ 96,000 $ 453,448 $ 552,221

Analysis of2009 Property Tax LewTax Yield

General Purpose Tax $27,178,673.. Added Taxes (54:4-63.1 et seq.) 69,17800 $ 27,247,851

Tax LevyLocal District School Tax (Abstract) $15,475,609

County Taxes

County Taxes (Abstract) $ 2,381,578

County Open Space ( Abstract) 133,288

Due County for Added Taxes(54:63.1 et seq.) 6,409

2,521,275

Local Tax for Municipal Purposes 9,186,905Add Additional Tax Levied 64,062

9,250,967

$ 27,247,851

EXHffiIT A-8

EXHIBIT A-9

BOROUGH OF LITTLE FERRYSTATEMENT OF PROPERTY ACQUIRED FOR TAXES (AT ASSESSED VALUAnON)



41414246

67.0271.01

72102

106.01106.01106.01106.01106.01

$ 1,062,600

$ 1,062,600

AnalysisAssessed

Lot Valuation

53 $ 11,70062 57,6005 2,0008 691,0003 22,40014 55,50040 70018 8,0002 53,5003 60,10012 49,300

13.05 41,20013.08 9,600

$ 1,062,600

EXHIBIT A-IO

STATEMENT OF DEFERRED CHARGES


2008

AmountRaised in

2009 Budget

Balance,December 3I ,

2009

Special Emergency-Master PlanSpecial Emergency-Prep ofTax Map $ 11,600 $ 11,600Special Emergency-Revaluation 46,000 46,000Special Emergency-Codification of Ordinances 10,000 10,000Emergency Authorizations-Capital Improvement Fund

$ 67,600 $ 67,600 $

49

BOROUGH OF LITTLE FERRYSTATEMENT OF RIi:VIi:NUIi: ACCOUNTS RECIi:IVABLE

EXHIBIT A-II


2008Accruedin 2009

Collected By

TaxCollector Treasurer


2009

LicensesAlcoholic Beverages $ 35,789 $ 35,789

OtherBorough Clerk 43,795 43,795Board of Health/Registrar 7,805 7,805

Fees and Pennits

Borough Clerk 3,021 3,021Board of Health/Registrar 2,324 2,324Police 3,008 3,008Planning/Zoning 1,867 1,867Tax Collector 55 55

Construction Code Fees 83,432 83,432Municipal Court

Fines and Costs $ 13,052 196,723 195,572 $ 14,203Uniform Fire Safety Act 32,434 32,434Interest and Costs on Taxes 114,565 $ 114,565Interlocal Service Agreement - Teterboro 262,500 262,500Prior Year Interlocal Service Agreement - BCUA 11 0,000 110,000Interlocal Service Agreement - BCUA 11 0,000 110,000Cell Tower Rents 32,664 32,664Hotel Tax 41,748 41,748Energy Receipts Tax 841,947 841,947Consolidated Municipal Purpose Tax Relief Aid 337,624 337,624

$ 123,052 $ 2,151,301 $ 114,565 $ 2,145,585 $ 14,203

EXHIBIT A-12

STATEMENT OF SPECIAL EMERGENCY NOTES PAYABLE


Decreased by:Cash Disbursements


50

$

$

46,000

46,000

BOROUGH OF LITTLE FERRYSTATEMENT OF 2008 APPROPRIATION RESERVES


EXHIBIT A-13Page I

BalanceAfter

Balance Transfers and UnexpendedDecember 31, Encumbrances Paid or Balance

f00 8 Cancelled Charged Lapsed

$ 17 $ 17 $ 171,2252,346 4,048 $ 1,549 2,499

620 620 620750 750

1,019 1,019 1,019126 978 899 79

100 100 10085 2,291 2,282 910 7,910 7,871 39

140 140 1405,438 7,115 3,657 3,458

7 7 7714 1,137 423 714

108 108 1082,440 2,440 2,440

3,831 3,125 706

21 9,522 9,405 117

100 100 100

259 259 2594,705 4,747 4,042 705

1,070 1,07011,578 73,974 61,051 12,9236,704 97,068 90,364 6,704

GENERAL GOVERNMENTGeneral Administration

Salaries & WagesPostageMiscellaneousMiscellaneous- COL Drug TestingEmployee Safety Award

Mayor & CouncilSalaries & WagesOther Expenses

Municipal ClerkSalaries & WagesOther ExpensesOther Expenses - Elections

Financial AdministrationSalaries & WagesOther Expenses

Revenue Administration (Collection ofTaxes)Salaries & WagesOther Expenses

Assessment ofTaxesSalaries & WagesOther Expenses

Legal Services & CostsOther Expenses - Fees and Costs

Engineering Services & CostsOther Expenses

Historic SocietyOther Expenses

Planning BoardSalaries & WagesOther Expenses

InsuranceUnemploymentGroup InsuranceOther Insurance Premiums

PUBLIC SAFETYAid to Volunteer Ambulance First Aid SquadFire

Salaries & WagesSalaries & Wages- Uniform Fire SafetyOther Expenses - Clothing AllowanceOther Expenses - MiscellaneousOther Expenses - Physical ExaminationsOther Expenses - Uniform Fire SaretyOther Expenses - Fire Hydrant Services

PoliceSalaries & WagesOther Expenses - MiscellaneousOther Expenses - Junior Safety Patrol

Office of Emergency ManagementOther Expenses

51

16,916 16,916

4 487 88

14,122 18,3066419 641

684 684

105,880 105,8807,561 15,987

300 300

2 1,502

3,554

410

8,358

16,916

488

14,752

231684

105,8807,629

300

1,502

BOROUGH OF LITTLE FERRYSTATEMENT OF 2008 APPROPRlATION RESERVES

FOR THE YEAR ENDED DECEMBER3I, 2009

Balance

December 31,

2008

Balance

After

Transfers and

Encumbrances

Cancelled

Paid or

Charged

EXHlBlT A-13

Page 2

UnexpendedBalance

Lapsed

PUBLIC WORKS

Streets & Roads Maintenance

Salaries & Wages

Other ExpensesGrass Collection

Other Public Works Functions

Other Expenses - Sewer SystemOther Expenses - Drainage

Other Expenses- Beautification Comm.

Buildings and GroundsSalaries & Wages

Other ExpensesOther Expenses-Environmental Testing

Vehicle Maintenance

Other Expenses

Solid Waste CollectionOther Expenses - Garbage - Contractual

HEALTH AND HUMAN SERVICES

Board of Health

Salaries & WagesOther Expenses

Animal Control Service

Salaries & WagesOther Expenses- Bergen County Animal Shelter

PARK AND RECREATION FUNCTIONS

Recreation Services and Programs

Salaries & WagesOther Expenses

Maintenance of Parks and Playgrounds

Other ExpensesPark Trees Maintenance

OTHER COMMON OPERATING FUNCTIONS

Celebration of Public EventsOther Expenses

Senior Citizen Program

Other ExpensesSenior Citizen / Community Busing

Salaries & WagesMunicipal COUlt

Salaries & Wages

Other ExpensesPublic Defender (P.L. 1997, C.256)

Salaries & Wages

$ 57,826 $7,013

3,646

398

2245,657

650

691

1,558

293

7,613

198124

33436

4,821

1,741

7,286

6,196

1449

60

52

57,826 $6,679

51

1,223

3,646

398

2246,005

650

1,479

19,259

2937,750

198

124

333,480

4,321

500

1,741

7,286

6,196

12,359

60

27,654 $1,045

3,572

1,040

17,684

138

3,043

2,214

30,172

5,634

51

1,2233,646

398

2242,433

650

439

1,575

293

7,612

198

124

33437

4,321SOD

1,741

7,286

6,196

1145

60

EXHII3IT A-13Pagc 3

BOROUGH OF LITTLE FERRYSTATEMENT OF 2008 APPROPRIAnON RESERVES


BalanccAftcr

Balance Transfers and UncxpendedDecember 31, Encumbrances Paid or Balance

fOOS Cancelled Charged ~QS!

Unifonn Construction Code Enforcement FunctionsAppropriations Offset by DedicatedRevenues (NJ.A.C. 5:23-4-17)CODE ENFORCEMENT AND ADMINISTRAnONUnifOlm Construction Code Enforcement FunctionsConstruction Code Official

Salaries & Wages $ 749 $ 749 $ 749

Other Expenses 804 1,084 $ 486 598Othcr Code Enforcement Functions

Salaries & Wages 46 46 46Othcr Expenses 50 50 50

Propelty Maintenance CodeSalaries & Wages 59 59 59

Unclassified:UTILITY EXPENSES AND BULK PURCHASES

Electricity 13,160 28,160 22,170 5,990Street Lighting 671 11,021 10,629 392Telephone 1,463 1,889 369 1,520

Water 228 708 428 280Gasoline 14,861 18,408 3,547 14,861

LANDFlLUSOLlD WASTE DISPOSAL COSTSGarbage - Tipping Fees 32,878 84,840 54,286 30,554Recycling- Leaf Disposal 27

DEFERRED CHARGES I STATUTORYEXPENDITURESStatutory Charges

Social Security System (O.A.S.T.) 1,314 1,314 1,314Pension Adjustment Fund 38 38 38

OPERATIONS -EXCLUDED FROM "CAPS"Police Dispatch/911

Other Expenses 800 800 800Reverse 911 1,000 1,000 1,000

Educational FunctiOllsMaintenanec of Free Public Library (P.L. 1985 C82) - Salaries & Wages 3,390 3,390Maintenance of Free Public Library (P.L. 1985 C82) - Other Expenses 15,032 19,130 19,130

Hackensack Meadowlands Adjustment Tax 4,554 4,554 4,554Sewerage Processing and Disposal Costs

Bergen County Utilities Authority- Contractual 16,225 47,724 30,837 16,887South Hackensack Sewer Charges 664

Public Employees Retirement System 7,000 7,000 7,000Public Safety Functions

LOSAP 8,300 8,300 8,300Teterboro Police

Other Expenses 13,000 13,000 13,000

$ 423,239 $ 764,605 $ 421,266 $ 343,339

Appropriation Reserves, December 31,2008 $ 423,239Encumbrances Reappropriated 341,366

$ 764,605

Cash Disbursements $ 401,481Transfer to Reserve for LOSAP 8,300Transfer to Reserve for Main!. of Library _11,482,

$ 421,266

53

BOROUGH OF LITTLE FERRYSTATEMENT OF MISCELLANEOUS DEPOSITS AND RESERVES

EXHIBIT A,14

TransferBalance, from Balance,

December 31, Appropriation Cash December 31,2008 Reserves Disbursements Cancelled 2009

Hartz Mountain $ 10,000 $ 10,000Police Honor Guard 2,054 2,054Insurance Costs 76,100 $ 76,100Codification of Ordinances 24,565 $ 6,518 18,047Tax Map 40,255 40,255Recreation Activities 11,973 11,973LOSAP $ 8,300 8,300Maintenance of Library 11,485 11,485

$ 164,947 $ 19,785 $ 6,518 $ 76,100 $ 102,114

54

BOROUGH OF LITTLE FERRYSTATEMENT OF ENCUMBRANCES PAYABLE

EXHIBIT A-15

Balance, December 31, 2008 $ 341,366

Increased by:Charges to 2009 Budget Appropriations $ 312,143Charges to Appropriated Grant Reserves 8,387

320,530

661,896Decreased by:

Transferred to Appropriated Reserves 341,366


EXHIBIT A-16

STATEMENT OF COUNTY TAXES PAYABLE


Increased by:2009 Tax Levy

County Tax (Abstract)County Open Space PreservationCounty Tax for Added Taxes (54:4-63.1)

Decreased by:Payments


55

$ 2,381,578133,288

6,409

$

2,521,275

2,521,275

2,521,275

$

BOROUGH OF LITTLE FERRYSTATEMENT OF LOCAL DISTRICT SCHOOL TAXES

EXHIBIT A-17

Balance, December 31, 2008School Tax Deferred $ 4,955,244School Tax Payable 2,772,073

$ 7,727,317Increased by:

Levy - School Year July 1,2008 toJune 30, 2009 15,475,609

23,202,926Decreased by:

Payments 15,437,929

Balance, December 31, 2009School Tax Deferred 5,455,244School Tax Payable 2,309,753

$ 7,764,997

2009 Liability for Local School TaxTax PaidTax Payable December 31, 2009

Less Tax Payable December 31, 2008

Amount Charged to 2009 Operations

56

$ 15,437,9292,309,753

17,747,682

2,772,073

$ 14,975,609

BOROUGH OF LITTLE FERRYSTATEMENT OF RESERVE FOR STATE TAX APPEALS

EXHIBIT A-18



$

$

25,499

25,499

STATEMENT OF PREPAID TAXES

EXHIBIT A-19


Increased by:Collection of2010 Taxes 431,491


Applied to 2009 Taxes Receivable 427,101


57

EXHIBIT A-20

BOROUGH OF LITTLE FERRYSTATEMENT OF RESERVE FOR GRANTS - UNAPPROPRIATED

Balance, Appropriated Balance,December 31, In December 31 ,

2008 2009 Budget Receipts 2009

Drunk Driving Enforcement $ 7,516 $ 7,516

Recychng Tonnage 5,305 5,305 $ 9,935 $ 9,935Body Almor Replacement 2,721 2,721Alcohol Education and Rehabilitation 696 696 93 93NJ Municipal StonTIwater 2,552 2,552

NJ Meadowlands Tax Sharing 1,325 1,325 9,205 9,205Clean Communities Grant 3,090 3,090

$ 20,115 $ 20,115 $ 22,323 $ 22,323

EXHIBIT A-2 I

STATEMENT OF RESERVE FOR GRANTS - APPROPRIATED

TransferBalance, from Balance,

December 31, 2009 Paid or December 31,

2008 Appropriations Charged 2009

Drunk Driving Enforcement Fund $ 20,000 $ 7,516 $ 2,012 $ 25,504BCUA Recycling Grant 5,305 2,499 2,806Clean Communities Grant 14,649 11,200 11,253 14,596Municipal Recycling Grant 842 842Municipal Alliance - County 5,955 13,892 16,924 2,923Alcohol Education and Rehabilitation Fund 1,272 696 1,968Reserve for Alcohol Education and Rehab 282 78 204Body Armor Replacement 4,075 2,721 6,796Police Vehicles Computers 116 116FEMAGrant 5,613 5,613OEM Grant 2,406 2,406NJ Municipal StOlm Water Program 2,552 2,552Smart Growth Future Planning Grant 13,200 12,913 287NJ Meadowlands Commission 123,694 111,915 158,963 76,646NJ Meadowlands Commission-Tax Shming 6,706 1,325 8,031Reserve for HMDC Grant 1,000 1,000Reserve for Environmental Commission Grant 5,000 5,000Protection and Prevention Special Grant 14,515 14,515

$ 219,325 $ 157,122 $ 210,004 $ 166,443

Cash Disbursements $ 201,617Encumbrances Payable 8,387

$ 210,004

58

BOROUGH OF LITTLE FERRYSTATEMENT OF ACCOUNTS PAYABLE

EXHffiIT A-22




$

$

6,879

1,497

5,382


STATEMENT OF TAX OVERPAYMENTS

EXHffiIT A-23

Increased by:Cash Receipts



59

$

$

30,393

30,393

30,393

TRUST FUND

BOROUGH OF LITTLE FERRYSTATEMENT OF DUE FROM CURRENT FUND

OTHER TRUST FUND

Balance, December 3I, 2008

Decreased by:Expenditnres Paid by Current FundInterest Ealned


EXHIBIT B-2

$ 256, I75

$ 10,867813

11,680

$ 244,495

EXHIBIT B-3

STATEMENT OF ESCROW AND MISCELLANEOUS DEPOSITS


Increased by:Cash Receipts 207,122


Cash Disbursements 212,928


Tax Sale Premiums $ 14,380Police Private Detail 35,425Escrow Deposits 73,137General Trust 51,892

$ 174,834

EXHIBIT B-4

STATEMENT OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES


Increased by:Animal Control Fees Collected

Decreased by:Expenditnres Under R.S. 4: 19-15.1Due to Cunent Fund-Statutory Excess


61

$ 2,414

3,239

5,653

$ 8241,838

2,662

$ 2,991

BOROUGH OF LITTLE FERRYSTATEMENT OF DUE TO STATE DEPARTMENT OF HEALTH

ANIMAL CONTROL FUND

EXHIBIT B-5


Increased by:State Fees Collected

Decreased by:Payments to State


$

$

24

531

555

555

STATEMENT OF DUE TO CURRENT FUND - ANIMAL CONTROL FUND

EXHIBITB-6


Increased by:Statutory Excess 1,838

13,072Decreased by:

Payments to Cnrrent Fnnd 11,234


EXHIBITB-7

STATEMENT OF RESERVE FOR POAA - EXPENDITURESOTHER TRUST FUND


Increased by:Cash Receipts 682

1,798Decreased by:

Cash Disbursements 160


EXHIBIT B-8

STATEMENT OF DUE TO GENERAL CAPITAL FUNDOTHER TRUST FUND



62

$

$

2,711

2,711

BOROUGH OF LITTLE FERRYSTATE OF RESERVE FOR AFFORDABLE HOUSING

OTHER TRUST FUND

EXHIBIT B-9




$

$

29,675

29,650

25

STATEMENT OF RESERVE FOR INDIAN LAKE FUNDOTHER TRUST FUND

EXHIBIT B-IO



$

$

100

100

STATEMENT OF RESERVE FOR MUNICIPAL ALLIANCE FUNDOTHER TRUST FUND

EXHIBIT B-II



15,196Decreased by:

Cash Disbursements 53

Balance, December 31,2009 $ 15,143

EXHIBIT B-12

STATEMENT OF DUE TO COMMUNITY DEVELOPMENT TRUST FUNDOTHER TRUST FUND



63

$

$

100

100

BOROUGH OF LITTLE FERRYSTATEMENT OF PAYROLL DEDUCTIONS PAYABLE

OTHER TRUST FUND

EXHIBIT B-13


Increased by:Payroll Deposits 5,985,671

6,129,405Decreased by:

Payroll Expenditures 6,068,249


EXHIBIT B-14

STATEMENT OF DUE TO GENERAL CAPITAL FUNDCOMMUNITY DEVELOPMENT TRUST FUND

Balance, December 31, 2008 $ 200

Increased by:Grant Receipts 139,916


Payments to General Capital Fnnd 139,916

Balance, December 31, 2009 $ 200

EXHIBIT B-15

STATEMENT OF RESERVE FOR RECREATION FEESOTHER TRUST FUND




Cash Disbursements 71,585


64

BOROUGH OF LITTLE FERRYSTATEMENT OF RESERVE FOR ACCUMULATED LEAVE COMPENSATION

OTHER TRUST FUND


Decreased by:Paid by Current Fund


STATEMENT OF RESERVE FOR VETERAN'S PARKOTHER TRUST FUND

EXHIBIT B-16

$ 238,763

10,867

$ 227,896

EXHIBIT B-17




65

$

$

4,133

6

4,139

GENERAL CAPITAL FUND

BOROUGH OF LITTLE FERRYSTATEMENT OF GENERAL CAPITAL CASH - TREASURER


EXHIBITC-2

$ 1,889,880

Increased by Receipts:Interest on Investments and DepositsBudget Appropriation: Capital Improvement FundGrant ReceiptsDeferred Charges Unfunded - Grant ReceiptsReceipts for Payment of Bonds

Decreased by Disbursements:Improvement AuthorizationsEncumbrances PayableDisbursements to Current FundCapital Improvement Fund


66

$ 9,00125,000

226,134336,000

35,982632,117

2,521,997

670,685125,520472,630

26,4791,295,314

$ 1,226,683

BOROUGH OF LITTLE FERRYANALYSIS OF GENERAL CAPITAL CASH

Fund BalanceDue to CutTent FundDue from Other TrustDue from Community Development FundGrants ReceivableReserve for Payment of BondsEncumbrance/Contracts PayableCapital Improvement FundExcess Note Proceeds

EXHIBIT C-3


2009

$ 154,775174

(2,711 )(200)

(126,902)90,960

1,195,53415,646

255,191

Ord.No.

636/6506867389069581017/10851032/1 078/11191056/11111065/1133107510771106/1122111311151132113811391144

1153/1202

11651166

11681187

1188

11891194

1217

12321236/1241/1275

1273

12831286

Improvement Authorizations

Purchase and Installation of New Fuel TanksImprovement to Sanitary Sewer SystemImprovement to Louis StreetBarrier Free CurbsAcquisition of Municipal BuildingImprovements to Washington AvenueStorm Water Pump Station - Depeyster GreekBeautification of Main StreetAcquisition of Land and Expansion of LibraryVarious Capital ImprovementsPurchase of Street SignsVarious Capital ImprovementsVarious Capital ImprovementsEquipment AcquisitionVarious Drainage Culvelis/PipesAcquisition of EquipmentImprovements to and Replacement of Sewer PipesVarious Improvements and Acquisition of Various Equip.

Various Capital Improvements

Roof Repairs at the Department of Public Works


Groundwater Sampling & Related Work

Purchase of Equipment

Acquisition of Ambulance/ EMS Vehicle

Acquisition of DPW, Police & Fire Equipment & Vehicles

Acquisition of Land


Improvements to Mehrhof Park


Rental Rehabilitation Program

Various Capital ImprovementsRenovations to Police Dispatch Area

67

(50)(400)

(] 0,000)(193)

18,227308,770

17,612125,13664,68122,662

7749,9648,1502,662

26(39,828)(71,236)

28986,262

(18,894)

(53,785)136

5,59440,048

21,354(128,713)

40,0]2

1,890(666,982)

19,051

(163,858)4,855

$ 1,226,683

BOROUGH OF LITTLE FERRYSTATEMENT OF DUE FROM/TO CURRENT FUND

EXHIBIT CA

Ba]ance, December 3],2008 (Due from) $ 74,441

Increased by:Receipts deposited in Current Fund

Premium on bonds/notesBond Anticipation Notes Issued

Cash Disbursement to Current Fund

Decreased by:Interest on InvestmentsExpenditures Paid by Current Fund

Reserve for Payment of DebtBond Anticipation Notes

Ba]ance, December 3 I, 2009 (Due to)

$ 91,71386,000

$ ]77,713472,630

650,343

724,784

$ 9,001

$ 53,957662,000

7]5,957

724,958

$ 174

EXHIBIT C-5

STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED


Increased by:BCIA Refunding Bonds

$ 4,528,729

1,650,000

6,178,729

Decreased by:Budget Appropriation to Pay BondsBudget Appropriation to Loan RepaymentsBonds Refunded

Balance, December 3 ], 2009

68

$ 625,00017,048

1,6] 0,0002,252,048

$ 3,926,68]

EXHIBIT C-6

Page 1

BOROUGH OF LITTLE FERRYSTATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED

Balance, Paid by Balance, Analysis of Balance. December 31 2009December 31, 2009 Budget Funded by December 31, Financed Improvement

Ord. No. Improvement Description 2008 Authorizations Appropriation Grants 2009 by BAN's Expenditures Authorization

650 Installation ofNew Fuel Tanks $ 50 $ 50 $ 50686 Improvement to Sanitary Sewer System 400 400 400738 Improvement to Louis Street 10,000 10,000 10,000906 Barrier - Free Curbs 193 193 193101711085 Impvts. To Washington Avenue 218,390 $ 3,950 $ 146,686 67,754 $ 63,200 $ 4,55410321107811119 Storm Water Pump Station 24,989 2,000 22,989 22,9891056 Beautification of Main Street 52 52 521065/1133 Acquisition of Land and Expansion of Library 963,517 27,900 935,617 935,6171075 Various Capital Improvements 51,500 16,850 34,650 34,6501086 2002 Road Resurfacing Program 95,750 3,900 91,850 91,8501087 Improvements to Robby Road Park 17,196 850 16,346 16,346110611 122 Various Capital Improvements 81,800 4,850 76,950 76,9501107 Improvements to Lakeview Park 32,008 1,200 30,808 30,8081108 Road Resurfacing Program 174,094 10,600 163,494 163,4941113 Various Capital Improvements 90,250 3,050 87,200 87,2001138 Acquisition of Equipment 39,828 39,828 39,8281139 Impvts. To & Replacement of Sewer Pipes 71,250 71,250 71,236 14

114611167 2004 Road Improvement Project 113,700 3,550 110,150 110,[50

115311202 Various Capital Improvements 917,600 35,800 881,800 798,200 83,600~~ 1165 Roof Repairs at the Department of Public Works 57,000 57,000 18,894 38,106

1166 Various Capital Improvements 1,002,250 7,500 994,750 568,050 53,785 372,9151169/1208/1210 Improvements to Various Parks 146,315 6,850 17,343 122,122 122,122

1188 Acquisition of Ambulance! EMS Vehicle 32,522 17,950 14,572 14,5721189 Acquisition ofDPW, Police & Fire Equip. & Vehicles 118,750 13,200 105,550 105,5501194 Acquisition ofLand 242,250 112,500 129,750 128,713 1,0371217 Various Capital Improvements 452,500 7,500 445,000 445,0001232 Various Public Improvements to MehrhofPark 365,250 230,348 134,902 134,902

1236/1241/1275 Various General Improvements 1,632,250 $ 28,500 1,660,750 686,659 666,982 307,1091273 Rental Rehab Program 380,000 380,000 380,000

1283 Various Capital Improvements 976,125 976,125 163,858 817,267

$ 6,951,654 $ 1,384,625 $ 160,000 $ 514,377 $ 7,661,902 $ 4,508,309 $ 1,153,939 $ 1,999,654

Grants Receivable $ 178,377Cash Receipts 336,000

$ 514,377

EXHIBITC-6Page 2

BOROUGH OF LITTLE FERRYSTATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED

Analysis of Balance, December 31, 2009Financed Improvementby BAN's Authorization

Bond Anticipation Notes

Less: Excess Note Proceeds

ard. 1210

ard. 1217

ard. 1232

Improvement Authorizations - UnfundedLess: Unexpended Proceeds of Bond

Anticipation Notes Issued:

$ 4,763,500

$ 17,343

7,500

230,348

255,191

$ 4,508,309

$ 2,350,013

ard.101711085 $ 63,200

ard. 106511133 64,681

ard. 1075 22,662

ard. 110611122 9,964

ard.ll13 8,150

ard. 115311202 86,262

ard.1188 14,572

ard. 1189 21,354

ard. 103211 07811119 17,612

ard.1217 40,012

ard. 1232 1,890

350,359

$ 1,999,654

70


STATEMENT OF GRANTS/ACCOUNTS RECEIVABLE

EXHIBIT C-7

Dept of

Transportation

Ord.1017 Dept of Due from Dept. of

Road Green Transportation Little Ferry Due from Transportation

Improvements Acres FEMA Ord 1166 First Aid CDBG BCUA Ord. 1217

Total Washington Ave Ord. 1153 Ord. 1153 MehrofRd. Ord.1188 Ord. 1232 Ord. 1232 Pickens St.

Balance, December 31, 2008 $ 397,172 $ 130,000 $ 29,550 $ 10,326 $ 105,715 S 34,524 S 29,557 $ 50,000 S 7,500

Increased by:

Grants Awarded

397,172 130,000 29,550 10,326 105,715 34,524 29,557 50,000 7,500

Decreased by:

Grants Received 226,134 120,388 18,689 29,557 50,000 7,500

Cancel1ed 34,524 34,524:::l

260,658 120,388 18,689 34,524 29,557 50,000 7,500

Balance, December 31, 2009 $ 136,514 $ 9,612 S 10,861 $ 10,326 S 105,715 $ S S $

Analysis of Balance

Reserve for ReceivableOrd.1017 $ 9,612

$ 9,612

Pledged to Ordinance

Ord. 1153 21,187Ord.1166 105,715

$ 136,514

EXHIBIT C-8BOROUGH OF LITTLE FERRY

STATEMENT OF IMPROVEMENT AUTHORIZATIONS

2009 Authorizations

DeferredCharges to

Balance, Capital Future Capital Contracts Balance,December3I 2008 Improvement Taxation Fund Payable Paid or December 31 2009

Ord. No. Improvements Funded Unfunded Fund Unfunded Balance Cancelled Charged Funded Unfunded

958/97611001/1005 Acquisition/Renovation of Municipal Bldg. $ 18,227 $ 1&,2271017/1085 lmpvts. To Washington Avenue 95,005 219,150 5 831 245,570 $ 67,7541055/1165 Various Capital Improvements 38,106 38,1061056/1111 Beautification of Main Street 125,837 52 701 125,136 521065/1133 Acquisition of land & Expansion of Library 64,681 64,6811075 Various Capital Improvements 27,306 4,644 22,6621077 Purchase of Street Signs 774 7741032/1078/1119 Storm Water Pump Station- Depeyster Creek 17,612 17,612110611122 Various Improvements 10,004 40 9,9641113 Various Acquisitions 8,150 8,1501115 Equipment Acquisition 2,662 2,662

~1132 Various Drainage Culverts/Pipes 1,331 1,305 26

" 1139 Improvements to and Replacement of Sewer Pipes 14 14

1144 Various Improvements and Acquisition of Various Equip 2,072 1,783 289115311202 Various Capital Improvements 203,757 33,895 169,8621166 Various Capital Improvements 527,383 154,468 372,9151168 Groundwater Sampling & Related Work 136 136116911208/1210 Improvements to Various Parks 1,029 1,0291187 Purchase of Equipment 8,406 2,812 5,5941188 Acquisition of Ambulance! EMS Vehicle 40,048 25,476 14,5721189 Acquisition ofDPW, Police & Fire Equip. & Vehicles 35,522 14,168 21,3541194 Acquisition of land 1,037 1,0371211 Monitoring Test Wells 1,562 1,5621217 Various Capital Improvements 55,659 15,647 40,0121232 Improvements to MehrhofPark 2 1,888 1,8901236/1241/1275 Varions Capital Improvements 540,259 $ 1,500 5 28,500 263,150 307,1091273 Rental Rehabilitation Program 20,000 380,000 949 19,051 380,0001283 Various Capital Improvements 51,375 976,125 215,233 812,2671286 Renovations to Police Dispatch Area $ 95,000 90,145 4,855

$ 256,012 1,789,771 7? ,875 S 1,384,625 $ 95,000 S 1,888 $ 802,362 S 447,796 $ 2,350,013

Cash Disbursements 5 670,685Contracts Payable 131,677

S 802,362

BOROUGH OF LITTLE FERRYSTATEMENT OF ENCUMBRANCES/CONTRACTS PAYABLE

EXHIBITC-9


Increased by:Charges to Improvement Authorizations

Decreased by:PaymentsCancelled


$ 1,191,265

131,677

1,322,942

$ 125,5201,888

127,408

$ 1,195,534

EXHIBIT C-l 0

STATEMENT OF CAPITAL IMPROVEMENT FUND


Increased by:2009 Budget Appropriation

Decreased by:Preliminary Expenses - Cash DisbursementsAppropriated to Finance Improvement Authorizations


73

$ 90,000

25,000

115,000

$ 26,47972,875

99,354

$ 15,646

EXHIBIT C-II

BOROUGH OF LITTLE FERRYSTATEMENT OF DUE FROM COMMUNITY DEVELOPMENT TRUST FUND



$

$

200

200

EXHIBIT C-12

STATEMENT OF GREEN ACRES LOAN PAYABLE


Decreased by:Loan Principal Paid by Budget Appropriation


STATEMENT OF RESERVE FOR PAYMENT OF BONDS


Increased by:Cash Receipt

Decreased by:

Expenditures Paid by Current Fund

$ 187,729

17,048

$ 170,681

EXHIBIT C-13

$ 108,935

35,982

144,917

53,957


74

$ 90,960

EXHIBIT C- 14

BOROUGH OF LITTLE FERRYSTATEMENT OF GENERAL SERIAL BONDS

Maturities of BondsOutstanding Balance, Balance,

Date of Original December 31. 2009 Interest December 31, December 31,Purpose Issue Issue Date Amount Rate 2008 Increased Decreased 2009

General Improvements of 1999 81111 999 $ 2,710,000 S 1,610,000 $ 1,610,000

General Improvements 0[2002 511/2002 3,726,000 8115/10-15 $ 320,0008115/2016 316,000 4.00% to

4.60% 2,516,000 280,000 $ 2,236,000

General Improvement Refunding of 2003 8/112003 1,815,000 215,000 215,000

General Improvement Refunding of 2009 (BCIA) 6/30/2009 1,650,000 8/15/2010 200,000 3.00% to8115/2011-12 195,000 4.00%

8115/2013-14 190,000

'" 8115/2015-16 185,000~

811 5/2017 180,000 $ 1,650,000 130,000 1,520,000

$ 4,341,000 $ 1,650,000 S 2,235,000 $ 3,756,000

Paid by Budget Appropriation $ 625,000Refunded 1,610,000

$ 2,235,000

EXHIBIT C-15

BOROUGH OF LITTLE FERRYSTATEMENT OF BOND ANTICIPATION NOTES

Date of Balance, Balance,

Ord. Original Date of Date of Interest December 31, December 31,

No. Improvement Description Issue Issue Maturitv Rate 2008 Increased Decreased 2009

1032/107811119 Stonn Water Pump Station 7122/2005 7118/2008 7/1912009 2.75 $ 24,989 $ 24,989

5/11/2009 5/1112010 1.25 $ 22,989 $ 22,989

106511133 Acquisition of Land & Expansion of Library 912512002 7/1812008 7/1912009 2.75 437,500 437,500

511112009 5/1112010 1.25 424,700 424,700

10651J 133 Acquisition of Land & Expansion of Library 9/24/2003 7/18/2008 7/19/2009 2.75 437,500 437,500

5/11/2009 511112010 1.25 424,700 424,700

1065/1133 Acquisition of Land & Expansion of Library 7120/2007 7/18/2009 7119/2009 2.75 88,517 88,517511112009 511112010 1.25 86,217 86,217

1075 Various Capital Improvements 712312003 7/1812008 7/1912009 2.75 51,500 51,5005/11/2009 5/1112010 1.25 34,650 34,650

101711085 Improvement of Washington Ave Stonn Drain 7/2312003 7/18/2008 711912009 2.75 67,150 67,150

5/11/2009 5/1112010 1.25 63,200 63,200

1086 Road Resurfacing Program 7123/2003 7/1812008 7119/2009 2.75 95,750 95,750

5/11/2009 5/1112010 1.25 91,850 91,850

1087 Improvements to Robby Road Park 712312003 7118/2008 7/19/2009 2.75 17,]96 17,196

5/1112009 5/11/2010 1.25 16,346 16,346

~1106/1122 Various Capital Improvements 7/23/2003 7/18/2008 711912009 2.75 81,800 81,800

~ 511112009 511112010 1.25 76,950 76,950

1107 Improvements to Lakeview Park 712312003 7/1812008 7119/2009 2.75 32,008 32,008

511112009 511112010 1.25 30,808 30,808

1108 Road Resurfacing Program 7/2112006 7/1812008 711912009 2.75 174,094 174,094

5/11/2009 5/1112010 1.25 163,494 163,494

1113 Various Improvements 7121/2006 7/1812008 7/19/2009 2.75 62,000 62,000

5/1112009 5/11/2010 1.25 58,950 58,950

1113 Various Improvements 7120/2007 711812008 7/19/2009 2.75 28,250 28,2505/11/2009 5/1112010 1.25 28,250 28,250

1146 2004 Road Improvements 7/21/2006 7118/2008 7119/2009 2.75 113,700 113,7005111/2009 5/11/2010 1.25 110,150 110,150

115311202 Various Capital Improvements 7/2112006 7118/2008 7/]9/2009 2.75 834,000 834,000

511112009 511 ]12010 1.25 798,200 798,200

1166 Various Capital Improvements 7/22/2005 7/20/2007 7/1812008 4.25 575,050 575,050

5111/2009 5/11/2010 1.25 500,000 500,000

EXHIBIT C-15


STATEMENT OF BOND ANTICIPATION NOTES

Date of Balance, Balance,

Ord. Oribrinal Date of Date of Interest December 31, December 3 I,

No. Improvement Description Issue Issue Maturitv Rate 2008 Increased Decreased 2009

1166 Various Capital Improvements 712012007 511112009 5111/2010 1.25 $ 68,050 $ 68,050

1169/1208/

1210 Improvements to Various Parks 712112006 7/18/2008 7/1912009 2.75 $ 146,315 S 146,315

5/1112009 5/1112010 1.25 139,465 139,465

1188 Acquisition of Ambulance/EMS Vehicle 7/20/2007 7118/2008 7/19/2009 2.75 32,522 32,522

51l1/2009 5/1112010 1.25 14,572 14,572

1189 Acquisition ofDPW, Police & Fire Equipment 7/2012007 71l8/2008 7/19/2009 2.75 118,750 118,750

5/11/2009 511112010 1.25 105,550 105,550

1217 Various Capital Improvements 7/18/2008 711812008 7/1912009 2.75 475,000 475,000

5/1112009 5/1112010 1.25 452,500 452,500

1232 Improvements to MehrhofPark 7/18/2008 7/1812008 7/1912009 2.75 1,005,250 1,005,250

5/11/2009 511112010 1.25 365,250 365,250

1236/124l/ Various Capital Improvements 7/1812008 7/1812008 7/19/2009 2.75 600,659 600,659

1275 5/1112009 5/1112010 1.25 600,659 600.659

1236/12411 Various Capital Improvements 511 1/2009 5/11/2009 5/1112010 1.25 86,000 86,000

$ 5,499,500 $ 4,763,500 $ 5,499,500 $ 4,763,500

~Paid by Current Fund S 662,000

~ Due from Current Fund $ 86,000Paid by Budget Appropriation 160,000Renewed 4,677,500 4,677,500

$ 4,763,500 S 5,499,500

BOROUGH OF LITTLE FERRYSTATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED

EXHIBIT C- I 6

Balance, Bond Balance,Ord. December 3 I, Grant Anticipation December 31,No. Improvement Description 2008 Authorizations Receipts Notes Issued 2009

650 Installation of Gasoline Tanks $ 50 $ 50686 Improvement to Sanitary Sewer 400 400738 Improvements to Louis Street 10,000 10,000906 Construction of Barrier - Free Curbs 193 193105511165 Roof Repairs at DPW Building 57,000 57,0001056 Beautification of Main Street 52 521085 Improvements to Washington Ave Storm Drain 151,240 $ 146,686 4,5541138 Acquisition of Equipment 39,828 39,8281139 Improvements to and Replacement of Sewer Pipes 71,250 71,2501153 Various Capital Improvements 83,600 83,6001166 Various Capital Improvements 426,700 $ 86,000 340,700

-...) 1194 Acquisition of Land 242,250 112,500 129,75000

1236/1241 Various General Improvements 1,031,591 $ 28,500 1,060,0911273 Rental Rehabilitation Program 380,000 380,000

1283 Various Capital Improvements 976,125 976,125

$ 2,114,154 $ 1,384,625 $ 259,186 $ 86,000 $ 3,153,593


COUNTY OF BERGEN

PART II

GOVERNMENT AUDITING STANDARDS

YEAR ENDED DECEMBER 31,2009

LERCH, VINCI & HIGGINS, LLP

CERTIFIED PUBLIC ACCOUNTANTS

REGISTERED MUNICIPAL ACCOUNTANTS

DIETER P. LERCH, CPA, RMA, PSA

GARY J. VINCI, CPA, RMA, PSA

GARY w. HIGGINS, CPA, RMA, PSA

JEFFREY C. BLISS, CPA, RMA, PSA

PAULJ.LERCH,CPA,RMA,PSA

DONNA L. JAPHET, CPA, PSA

JULIUS B. CONSONl, CPA, PSA

17·17 ROUTE 208

FAIR LAWN, NJ 07410

TELEPHONE (201) 791-7100

FACSIMILE (201) 791-3035

WWW.LVHCPA.COMELIZABETH A. SHICK, CPA. RMA, PSA

ANDREW PARENTE, CPA, RMA, PSA

ROBERT W. HAAG, CPA, PSA

DEBORAH KOZAK, CPA, PSA

DEBRA GOLLE, CPA

CINDY JANACEK, CPA, RMA

RALPH M. PICONE, CPA. RMA, PSA

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Mayor and Membersof the Borough Council

Borough ofLittle FerryLittle Ferry, New Jersey

We have audited the financial statements - regulatory basis of the Borough of Little Ferry as of and for the yearended December 31, 2009, and have issued our report thereon dated June 30, 2010 which indicated that the financialstatements were not prepared in accordance with accounting principles generally accepted in the United States ofAmerica but rather prepared using the regulatory basis of accounting prescribed or permitted by the Division ofLocal Government Services, Department of Community Affairs, State of New Jersey as described in Note I. Inaddition, our report on the financial statements - regulatory basis was qualified because of the presentation of theunaudited LOSAP Trust Fund. Except as discussed in the preceding sentence, we conducted our audit in accordancewith auditing standards generally accepted in the United States of America; the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of the United States andaudit requirements prescribed by the Division of Local Government Services, Department of Community Affairs,State of New Jersey.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Borough of Little Ferry's internal control over financialreporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the Borough's internal controlover financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Borough's internalcontrol over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internalcontrol such that there is a reasonable possibility that a material misstatement of the Borough's financial statementswill not be prevented, or detected and corrected on a timely basis.

79

Our consideration of internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and was not designed to identifY all deficiencies in internal control over financial reportingthat might be deficiencies, significant deficiencies or material weaknesses. We did not identifY any deficiencies ininternal control over financial reporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Borough of Little Ferry's financial statements are freeof 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 thedetermination of financial statement amounts. However, providing an opinion on compliance with those provisionswas not an objective of our audit, and accordingly, we do not express such an opinion. The results of our testsdisclosed no instances of noncompliance or other matters that are required to be reported under GovernmentAuditing Standards and audit requirements as prescribed by the Division ofLocal Government Services, Departmentof Community Affairs, State ofNew Jersey.

However, we noted certain matters that we reported to management of the Borough of Little Ferry in Part ill of thisreport of audit entitled "Letter of Comments and Recommendations".

This report is intended solely for the information and use of the governing body, management, New JerseyDepartment of Community Affairs and federal and is not intended to be and should not be used by anyone other than

these specified parties. _~_ ,,-,,:;/ "~' ' <)

~uL~("~.I<,,~h!/LERCH, VINCI & HIG ~, LLPCertified Public AccountanRegist",rei(':urii~" al c ntants

~./-'/ c'

fi2'I3f~l-t:'.Lerch

Registered MuniCIpal AccountantRMA Number CR00398

Fair Lawn, New JerseyJune 30, 2010

80

BOROUGH OF LITTLE FERRYSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Schedule A

MemoGrant or Federal 2009 Grant Balance, Balance, Cumulative

State Project Grant CFDA Grant Award January 1, Revenue Expendi~ December 3 I, TotalNumber Year Number Receipts Amount 2009 Realized tures 2009 Expenditures

u.S. Department of Housing and UrbanDevelopment (Passed through County Dept.of Community Development

Community Development Block GrantsImpvt. To MehrhofPark - Ord. 1232

Federal Emergency AdministrationFEMA - Emergency Black~Out Grant

2007

2004

14.219

N/A

$ 29,557

$ 5,613 $ 5,613

$ 84,450

Note: This schedule is not subject to Single Audit requirements ofOMB A-l33.

N/A - Not Available

$ 5,613 $ 5,613 ~$~_8;::4c:,4",5,,0

Schedule BBOROUGH OF LITTLE FERRY

SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCEFOR THE YEAR ENDED DECEMBER31, 2009

Memo

2009 Balance, Balance, CumulativeGrant Grant Grant January 1, December 31, Total

State Grant Program Grant Number y,~ Award Receipts 2009 Revenue Expended 2009 Expenditures

Alcohol Education and Rehabilitation Pgm. NfA 2006 766 5 441 441 7662005 1,418 831 831 1,4182008 282 78 204 782009 696 696 696 696

Clean Communities Grant 4900-765-004 2007 9,691 1,007 1,007 9,6912008 11,139 13,642 10,246 3,396 10,2462009 11,200 11,200 11,200 11,200

Dept. of Environmental Protection 4910-759-690-50 2007 3,848 112 112 3,848(Passed Through County of Bergen) 2006 4,052 638 638 4,052Municipal Recycling Assistance Program 4900-752-001 2008 8,592 92 92 8,592

Drunk Driving Enforcement Fund NfA 2008 21,281 20,000 2,012 17,988 3,2932009 7,516 7,516 7,516

Body Armor Replacement Program 1020-718-001 2007 2,546 2,546 2,5462005 4,973 1,072 1,072 3,9012008 457 4572009 2,721 2,721 2,721

HMDC Recycling Grant NfA 2008 1,000 1,000

~ Environmental Commission NfA 2008 5,000 5,000

Municipal Stormwater Grant 4850-100-118 2009 2,552 2,552 2,552 2,552

Smart Future Planning Grant

Redevelopment of Waterfront Sites NfA 2004 70,000 13,200 12,913 287 69,713

Special Legislative Grant 8030-100-02280-30 2001 200,000 116 116

Municipal Alliance Program NfA 2007 13,000 6,646 6,162 6,162 13,0002008 11,500 54 11,5002009 11,017 13,892 10,969 2,923

SLAHEOP (OEM) Grant NfA 2004 2,406 2,406 2,406

Green Acres Trust Grant NfA 2004 29,550 18,689 29,550 18,689 10,861

New Jersey Meadowlands Commission (Pass-TllTough)Tax Sharing NfA 2005 6,706 6,706 6,706Tax Sharing 2009 1,325 1,325 1,325Municipal Assistance Program 2007 100,000 23,694 23,694 100,000Municipal Assistance Program 2008 100,000 100,000 100,000 100,000

Municipal Assistance Program 2009 120,000 120,000 120,000 43,354 76,646 43,354

Protection and Prevention Special Grant N/A 2005 28,753 14,515 14,515 3,290

Department of TransportationImpYL to Washington Ave.-Ord. 1017/1085 6320-480-6013-61 2000 130,000 120,388 129,004 ~ 9,612

372,473~~ 5 178,497 389,990

N/A - Not Available

Note: This schedule is not subject to Single Audit requirements ofNJ OMB 04-04,

NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDSAND STATE FINANCIAL ASSISTANCE

BOROUGH OF LITTLE FERRYNOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDSAND STATE FINANCIAL ASSISTANCEYEAR ENDED DECEMBER 31, 2009

NOTE 1 GENERAL

The accompanying schedules present the activity of all federal awards and state financial assistance programs of theBorough of Little Ferry. The Borough is defined in Note leA) to the Borough's financial statements. All federalfinancial assistance received directly from federal agencies, as well as federal awards and state financial assistancepassed through other government agencies is included on the schedule of expenditures of federal awards and statefinancial assistance.

NOTE 2 BASIS OF ACCOUNTING

The accompanying schedules are presented using the regulatory basis of accounting as prescribed or permitted formunicipalities by the Division of Local Government Services, Department ofCornrnunity Affairs, State of New Jerseywhich differ in certain respects from accounting principles generally accepted in the United States of America (GAAP)applicable to local government units. This basis of accounting is described in Note I(B) to the Borough's financialstatements.

NOTE 3 RELATIONSHIP TO FINANCIAL STATEMENTS

Amounts reported in the accompanying schedules agree with amounts reported in the Borough's financial statements.Financial assistance revenues are reported in the Borough's financial statements on a basis of accounting describedabove as follows:

Current Fund $ 159,902

NOTE 4 RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules may not necessarily agree with the amounts reported in the relatedfederal and state financial reports due to timing differences between the Borough's fiscal year and grant program year.

83

BOROUGH OF LITTLE FERRYNOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDSAND STATE FINANCIAL ASSISTANCEYEAR ENDED DECEMBER 31,2009

NOTE 5 FEDERAL AND STATE LOANS OUTSTANDING

The Borough's federal and state loans outstanding at December 31, 2009, which are not required to be reported on theschedules of expenditures of federal awards and state financial assistance, are as follows:

Loan Program

Green Trust ProgramGreen Tmst Program

State Account Number

0230-092-0810230-092-082

84

$101,83368,848

$170681


PART ill

SUPPORTING DATA

LETTER OF COMMENTS AND RECOMMENDATIONS

YEAR ENDED DECEMBER 31, 2009

BOROUGH OF LITTLE FERRYSUPPORTING DATA

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE-CURRENT FUND

Year 2009 Year 2008Amount Percent Amount Percent

REVENUE AND OTHER INCOME REALIZED

Fund Balance Utilized $ 1,500,000 4.78 % $ 1,700,000 5.45 %Miscellaneous - From Other Than Local

Property Tax Levies 2,675,231 8.52 2,630,020 8.43Collection of Current and Delinquent Taxes 26,778,780 85.32 26,382,029 84.54Other Credits to Income 432,511 1.38 496,742 1.58

Total Income 31.386,522 100.00 % 31,208,791 100.00 %

EXPENDITURES

Budget Expenditures

Municipal Purposes 12,660,551 41.98 % 12,657,907 42.52 %

County Taxes 2,521,275 8.36 2,437,114 8.19Local School Taxes 14,975,609 49.65 14,673,133 49.29Other Expenditures 3,302 .01 2,749

Total Expenditures 30,160,737 100.00 % 29,770,903 100.00 %

Statutory Excess to Fund Balance 1,225,785 1,437,888

Fund Balance, January I 1,730,886 1,992,998

2,956,671 3,430,886

Less Utilization as Anticipated Revenue 1,500,000 1,700,000

Fund Balance, December 31 $ 1,456,671 $ 1,730,886

85


Comparative Schedule Of Tax Rate Information

Tax Rate

Apportionment of Tax Rate

MunicipalCountyLocal School

Assessed Valuation

2009

2008

.752

.2071.267

$1.221.281,687

.724

.2011.235

.694

.1801.186

2007

Comparison Of Tax Levies And Collection Currently

~ 1.233.15(i,~27

A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage ofcurrent collection could be an indication of a probable increase in future tax levies.

Year

2009

2008

2007

Delinquent Taxes

Percentage

of

Tax Levy Cash Collections Collection

$ 27,247,851 $ 26,251,739 96.34%

26,552,020 25,799,326 97.16%

25,446,102 24,777,915 97.37%

This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes in relationto the tax levies of the last three years.

Arnountof Percentage

December 31 Delinquent of

Year Taxes Tax Levy

2009 $ 552,221 2.03%

2008 536,348 2.02%

2007 583,872 2.29%

86


Property Acquired By Tax Title Lien Liquidation

No properties have been acquired in 2009 by foreclosure or deed, as a result of liquidation of tax titleliens. The value of property acquired by liquidation of tax title liens at December 31, on the basis of the lastassessed valuation of such properties, was as follows:

Amount

Comparative Schedule Of Fund Balances

2009

2008

2007

$1,062,600

1,062,600

1,062,600

UtilizedBalance, In Budget of

Year December 31 Succeeding Year

Current Fund 2009 $1,456,671 $1,250,000

2008 1,730,886 1,500,000

2007 1,992,998 1,700,000

2006 1,855,230 1,600,000

2005 1,593,628 1,300,000

The 2009 Fund Balance appropriated represents the surplus anticipated in the 2010 introduced municipal budget.The 2010 municipal budget has not been adopted as of the date of audit.

87


OFFICIALS IN OFFICE AND SURETY BONDS

The fol1owing officials were in office during the period under audit:

Amount ofBond

CorporateSurety

Mauro RaguseoGeorge Mul1erRoberta HenriquezThomas SarloRonald AnzaloneSue SchuckPeggy SteinhilberKenneth Gabbert

Guiseppe RandazzoLeonard NicolosiBarbara MaldonadoFrank BerardoJoseph MonaghanKenneth JobCheryl AshleyCharles BatchRichard BolanDavid LudwigDebbie BrothersAmy WayElsbeth CrusilsMichael PurvinRalph VerdiGeorge ReggoMark Musel1a

MayorCouncil PresidentCouncilwomanCouncilmanCouncilmanCouncilwomanCouncilwomanBorough Administrator (1/1/09-11/2/09)

TreasurerMagistrateChiefFinancial OfficerBorough ClerkTax Col1ectorBorough AttorneyBorough EngineerLibrarianFire Sub-Code OfficialConstruction Code OfficialPlumbing InspectorCourt ClerkDeputy Court ClerkBorough ProsecutorBorough ProsecutorChiefof PoliceTax AssessorPublic Defender

(I)(I)

(1)

(I)(I)(I)(I)(I)(1)

(1)(1)(I)

(I) Bergen County Municipal Joint Insurance FundBlanket Bond. Limit is $1,000,000 per occurrence

88


GENERAL COMMENTS

Current Year Findings

Our audit revealed that the Borough attorney is enrolled in the Public Employees Retirement System, howeverattorneys are required to be enrolled in the Defined Contribution Retirement Program as promulgated by the LocalFinance Notice from the Division of Local Government. It is recommended that the Borough obtain a writtenconfirmation from the NJ Division of Pensions to confirm that all employees enrolled in the Public EmployeesRetirement System are currently eligible for coverage.

Certain grant receivable balances in the Current Fund and General Capital Fund are several years' old and relatedprojects which appear to be complete. Continued efforts should be made to collect prior year grant receivablebalances for completed projects.

Certain instances were noted where goods/services received in 2008 were charged to the 2009 budgetappropriations. In addition, a certain item ordered/received in 2009 was charged to the 2008 appropriationreserves. It is recommended that internal controls be enhanced to ensure that expenditures be charged to theproper budget year.

Our audit revealed that purchases in excess of the bid threshold made utilizing the State Contract CooperativePurchasing Program were not approved by resolution of the Governing Body. It is recommended that allpurchases in excess of the bid threshold made utilizing the State Contract Cooperative Purchasing Program beapproved by resolution of the Governing Body.

Contracts And Agreements Required To Be Advertised For N.J.S. 40A:11-4

NJS 40A: 11-4 states "Every contract or agreement, for the performance of any work or the furnishing or hiring ofany materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds notincluded within the terms of Section 3 of this act, shall be made or awarded only after public advertising for bidsand bidding therefore, except as is provided otherwise in this act or specifically by any other law. No work,materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate $21,000,except by contract or agreement."

The Governing Body of the Municipality has the responsibility of determining whether the expenditures in anycategory will exceed $21,000 within the fiscal year. Where a question arises as to whether any contract agreementmight result in violation of the statute, the Borough Counsel's opinion should be sought before a commitment ismade.

The minutes indicate that bids were requested by public advertising for the following items:

Solid Waste Disposal2009 Road Improvement ProgramSkid Steer MachineGrass Collection

Improvements to Washington AvenueFull Moldboard Trip Power Reversible Plows

with Integral ShieldsMason Dump Truck with Snow Plow

The minutes indicate that resolutions were adopted and advertised authorizing the awarding of contracts oragreements for "Professional Services" per N.J.S. 40A: 11-5.

89


Contracts And Agreements Reqnired To Be Advertised For N.J.S. 40A:11-4 (Continned)

Our examination of expenditures did not reveal instances wliere individual payments exceeded of $21 ,000 "for tlieperformance of any work, or the furnisliing or hiring of any materials or supplies," where bids had not beenpreviously sought by public advertisement or where a resolution had been previously adopted under the provisionsofNJS 40A: 11-6.

Inasmuch as the system of records did not provide for an accumulation of payments for categories for theperformance of any work or the furnishing or hiring of any materials or supplies, the results of such anaccumulation could not reasonably be ascertained. Disbursements were reviewed, however, to detennine whetherany clear-cut violations existed.

Collection Oflnterest On Delinqnent Taxes And Assessments

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

The Governing Body on January 2, 2009 adopted the following resolution authorizing interest to be charged ondelinquent taxes:

"BE IT RESOLVED by the Mayor and Council of the Borough of Little Ferry, New Jersey, Countyof Bergen, that the rate of interest on all taxes delinquent is set at eight (8) percent for the first($1,500) fifteen hundred dollars, and eighteen (18) percent on any amount in excess of ($1,500)fifteen hundred dollars, and

BE IT FURTHER RESOLVED, that a 6% penalty for a delinquency over $10,000 ifnot paid prior tothe end of the calendar year, and

"BE IT FURTHER RESOLVED, that no interest shall be charged if payment of any installment ismade within ten (10) days after the date upon which the same is payable, and

"BE IT RESOLVED, that in any case where the tax is not paid within those extended days the fullpenalty from this date due attaches."

It appears from our examination of the Collector's record that interest was collected in accordance with theforegoing resolution.

Delinqnent Taxes And Tax Title Liens

There was a tax sale held on December 2,2009.

There were no Borough owned tax title liens receivable as of December 31, 2009.

The following comparison is made of the number of tax title liens receivable on December 31 of the last threeyears.

Number of Liens

200920082007

ooo

90


RECOMMENDATIONS

It is recommended that:

1. The Borough obtain a written confinnation from the NJ Division of Pensions to confinn that all employeesenrolled in the Public Employees Retirement System are currently eligible for coverage.

2. Continued efforts should be made to collect prior year grant receivable balances for completed projects.

3. Internal controls be enhanced to ensure that all expenditures be charged to the proper budget year,

4. All purchases in excess of the bid threshold made utilizing the State Contract Cooperative Purchasing Programbe approved by resolution ofthe Governing Body.

Status of Prior Year's Audit FindingslRecommendations

A review was perfonned on all prior year's recommendations, Corrective action was taken on the prior yearrecommendation.

********

The recommendations noted in our review were not of such magnitude that they would affect our ability to expressan opinion on the financial statements taken as a whole.

Should any questions arise as to our comments or recommendations, or should you desire assistance in

implementing our recommendations, please do not hesitate to call us,-... ~.. '/, ..~., ";/

L~L;;:;iL-C f" C £t//~ERCH, VINCI & HIGGIN LP

Certified Public AccountantsRegistered Mun' i al Ac tants

Registered Mun'cipal AccountantRMA Number CR00398

91

Documents

BOROUGHOFLITTLE FERRY BERGENCOUNTY, NEWJERSEY … · basis ofthe Current Fund for the year ended December 31, 2009 on the basis ofaccounting described in Note 1. In accordance with