GREENWICH TOWNSHIP COUNTY OF WARREN REPORT OF …

GREENWICH TOWNSHIP

COUNTY OF WARREN

REPORT OF AUDIT

2017

NISIVOCCIA LLP CERTIFIED PUBLIC ACCOUNTANTS

GREENWICH TOWNSHIP

COUNTY OF WARREN

REPORT OF AUDIT

2017

GREENWICH TOWNSHIP TABLE OF CONTENTS

YEAR ENDED DECEMBER 31, 2017

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

Financial Statements Current Fund

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

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

General Capital Fund Comparative Balance Sheet - Regulatory Basis Statement of Fund Balance - Regulatory Basis

Water Utility Fund (Not Applicable) Sewer Utility Fund

Comparative Balance Sheet - Regulatory Basis Comparative Statement of Operations and Changes in Fund Balance - Sewer Utility

Operating Fund - Regulatory Basis Statement of Sewer Capital Fund Balance - Regulatory Basis (Not Applicable) Statement of Revenue - Regulatory Basis Statement of Expenditures - Regulatory Basis

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

Balance Sheet - Regulator Basis

Notes to Financial Statements

Supplementary Data Officials in Office and Surety Bonds Current Fund

Schedule of Cash Schedule of Cash - Collector Schedule of Cash - Grant Funds (Not Applicable) Schedule of Taxes Receivable and Analysis of Property Tax Levy Schedule of Tax Title Liens Schedule of Revenue Accounts Receivable Schedule of Grants Receivable - Federal and State Grant Fund Schedule of 2016 Appropriation Reserves Schedule of School District Taxes Payable (Not Applicable) Schedule of Local School Taxes Payable Schedule of Appropriated Grant Reserves - Federal and State Grant Fund Schedule of Unappropriated Grant Reserves - Federal and State Grant Fund

Page 1-3

Schedule A

A-1 A-2 A-3

B

c C-1

E

E-1 E-lA

E-2 E-3

H

Page 1-24

Schedule 1

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

A-10 A-11 A-12 A-13 A-14 A-15

GREENWICH TOWNSHIP TABLE OF CONTENTS

YEAR ENDED DECEMBER 31, 2017 (Continued)

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

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

General Capital Fund Schedule of Cash Analysis of Cash Schedule of Deferred Charges to Future Taxation - Unfunded Schedule of Improvement Authorizations Schedule of Capital Improvement Fund Schedule of Bond Anticipation Notes Payable Schedule of Serial Bonds Payable Schedule of Bonds and Notes Authorized But Not Issued

Water Utility Fund (Not Applicable) Sewer Utility Fund

Schedule of Cash - Treasurer Schedule of Cash - Collector (Not Applicable) Analysis of Capital Cash Schedule of Consumer Accounts Receivable Schedule of Fixed Capital (Not Applicable) Schedule of Fixed Capital Authorized and Uncompleted (Not Applicable) Schedule of 2016 Appropriation Reserves Schedule oflmprovement Authorizations (Not Applicable) Schedule of Capital Improvement Fund Schedule of Deferred Reserve for Amortization (Not Applicable) Schedule of Reserve for Amortization (Not Applicable) Schedule of Bond Anticipation Notes Payable (Not Applicable) Schedule of Serial Bonds Payable (Not Applicable) Schedule of Bonds and Notes Authorized But Not Issued (Not Applicable)

Public Assistance Fund (Not Applicable) Bond and Interest Fund (Not Applicable)

PART II - Single Audit Schedule of Expenditures of Federal A wards Schedule of Expenditures of State A wards Notes to the Schedule of Expenditures of Federal and State Awards Independent Auditors' Report on Internal Control Over Financial Reporting and on

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

Schedule of Findings and Responses Summary Schedule of Prior Audit Findings

PART III - Comments and Recommendations Comments and Recommendations Summary of Recommendations

Schedule

B-4

B-5

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

E-4 E-4A

E-5 E-6 E-7 E-8 E-9

E-10 E-11 E-12 E-13 E-14 E-15 E-16

Page 1 2 3

4-5 6-7

8

9-13 14

GREENWICH TOWNSHIP

PART I

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


o N 1 s 1 v a c: c: 1 A LLP Certified Public Accountants & Advisors

The Honorable Mayor and Members of the Township Committee

Greenwich Township Stewartsville, New Jersey

Report on the Financial Statements

Independent Auditors' Report

Mount Arlington Corporate Center 200 Valley Road, Suite 300

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

Lawrence Business Center 11 Lawrence Road Newton, NJ 07860

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

We have audited the financial statements - regulatory basis of the various funds of Greenwich Township, in Warren County (the "Township") as of and for the years ended December 31, 2017 and 2016, and the related notes to the financial statements, as listed in the foregoing table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division") to demonstrate compliance with the Division's regulatory basis of accounting, and the budget laws of New Jersey; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, audit requirements prescribed by the Division, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Township's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Township's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

www.nisivoccia.com Independent Member of BKR International

1


Greenwich Township Page2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generatly Accepted Accounting Principles

As described in Note 1, the financial statements are prepared by the Township on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for the Adverse Opinio'IJ on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly in accordance with accounting principles generally accepted in the United States of America the financial position of each fund of the Township as of December 31, 2017 and 2016, or the changes in financial position or where applicable, cash flows thereof for the years then ended.

Basis for Qualified Opinion

The financial statements - regulatory basis - of the various funds of the Township do not include the general fixed assets account group as of December 31, 2016, which should be included to conform with the accounting practices prescribed or permitted by the Division. As described in Note l, the amount that should be recorded in the general fixed assets account group as of December 31, 2016 cannot be determined.

Qualified Opinion on Regulatory Basis of Accounting

In our opinion, except for the effects on the December 31, 2017 and 2016 financial statements of the matter described in the Basis for Qualified Opinion paragraph, the financial statements - regulatory basis - referred to above present fairly, in all material respects, the financial position of the various funds of Greenwich Township as of December 31, 2017 and 2016, and the results of operations and changes in fund balance, where applicable, of such funds, thereof for the years then ended, and account group on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, as described in Note l.

Other Matters

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the :financial statements of the various funds that collectively comprise the Township's financial statements. The supplementary data schedules listed in the table of contents and the schedules of expenditures of federal and state awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis and are not a required part of the financial statements.

2


Greenwich Township Page 3

The supplementary data schedules and the schedules of expenditures of federal and state awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the various fund financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the various fund financial statements or to the various fund financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary data schedules and the schedules of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2018 on our consideration of Greenwich Township's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Greenwich Township's internal control over financial reporting and compliance.

Mount Arlington, New Jersey March 26, 2018

NISIVOCCIA, LLP

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3

GREENWICH TOWNSHIP

COUNTY OF WARREN

2017

CURRENT FUND

GREENWICH TOWNSHIP

CURRENT FUND

A

1 of2

COMPARATIVE BALANCE SHEET- REGULATORY BASIS

ASSETS

Regular Fund:

Cash and Cash Equivalents:

Treasurer

Due from State ofNew Jersey:

Senior Citizens and Veterans Deductions

Receivables and Other Assets With Full Reserves:

Delinquent Property Taxes Receivable

Tax Title Liens Receivable

Revenue Accounts Receivable

Property Acquired for Taxes

Due from Animal Control Fund

Due from Other Trust Funds

Due from General Capital Fund

Due from Sewer Utility Operating Fund

Due from Payroll Account

Total Receivables and Other Assets With Full Reserves

Deferred Charges:

Emergency Authorization (N.J.S.A. 40A: 4-48)

Total Deferred Charges

Total Regular Fund

Federal and State Grant Fund:

Due from Current Fund

Federal and State Grants Receivable

Total Federal and State Grant Fund

TOTAL ASSETS

A-4

A-7

A-8

A-9

B

B

c E

A

A-10

December 31,

2017

$ 5,116,239.36

1,371.75

5,117,611.11

335,308.12

4,713.53

316,200.00

14.43

0.75

41,043.79

138,186.79

835,467.41

5,953,078.52

194,240.10

194,240.10

$ 6,147,318.62

2016

$ 5,003,190.72

5,003,190.72

262,341.18

75,876.19

4,544.38

3.62

1.67

93.46

5,043.79

88,186.79

436,091.08

95,000.00

95,000.00

5,534,281.80

191,769.93

165,426.16

357,196.09

$ 5,891,477.89

GREENWICH TOWNSHIP CURRENT FUND


(Continued)

A 2 of2

December 31,

Ref. 2017 2016

LIABILITIES, RESERVES AND FUND BALANCE

Regular Fund: Appropriation Reserves:

Encumbered A-3;A-11 $ 9,779.63 $ 46,881.81

Unencumbered A-3;A-11 97,794.83 388,622.11

107,574.46 435,503.92

Prepaid Taxes 657,680.91 95,300.79

Tax Overpayments 75,148.70 22,347.61

Accounts Payable - Vendors 311.75

School Taxes Payable A-13 2,858,916.48 2,951,842.02

County Taxes Payable 40,947.42 4,435.40

Due to State of New Jersey: Marriage License Fees 75.00 625.00

Senior Citizens and Veterans Deductions 4,842.98

Due to Federal and State Grant Fund A 194,240.10 191,769.93

Due to Other Trust Funds B 16.20

Due to Other Trust Funds - Open Space B 1,037.88 Due to Other Trust Funds - Tax Sale Premiums B 69,700.00

Reserve for: Codification of Ordinances 12,356.00 20,000.00

Pedestrian Crossing 138,207.00

Third Party Liens 39,806.57 23,160.90

Payment of Debt Service 96,389.16

Tax Sale Premiums 82,200.00

4, 154,200.63 3,970,235.55

Reserve for Receivables and Other Assets A 835,467.41 436,091.08

Fund Balance A-1 963,410.48 1,127,955.17

Total Regular Fund 5,953,078.52 5,534,281.80

Federal and State Grant Fund: Due to General Capital Fund c 56,737.03 45,000.00

Appropriated Reserve for Grants A-14 113,844.43 295,462.74

Unappropriated Reserve for Grants A-15 23,658.64 16,733.35

Total Federal and State Grant Fund 194,240.10 357,196.09

TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 6,147,318.62 $ 5,891,477.89

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

GREENWICH TOWNSHIP

CURRENT FUND

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE- REGULATORY BASIS

A-1

Year Ended December 31,

Ref. 2017 2016 Revenue and Other Income Realized

Fund Balance Utilized $ 975,000.00 $ 848,250.00 Miscellaneous Revenue Anticipated 467,065.35 887,025.98 Receipts from:

Delinquent Taxes 262,365.84 256,291.00 Current Taxes 19,025,000.57 18,655,804.02

Nonbudget Revenue 207,422.27 123,327.99 Other Credits to Income:

Unexpended Balance of Appropriation Reserves 127,251.14 261,632.39 Cancellation of Appropriated Grant Reserves 142,431.92 Increase in Deferred School Tax 250,000.00 350,000.00 Reserve for Pedestrian Crossing Cancelled 138,207.00 lnterfunds Returned 173,458.05

Total Income 21,594,744.09 21,555,789.43

Expenditures

Municipal Purposes 4,070,676.55 4,458,453.12 County Taxes 5,238,480.63 5,228,757.24 Local School District Taxes 10,982,349 .00 10,688,200.00 Municipal Open Space Taxes 241,415.35 238,445.26 Senior Citizen Deductions Disallowed 24.66 Interfunds Advanced 85,916.43 93,329.33 Cancellation of Grants Receivable 165,426.16

Total Expenditures 20, 784,288. 78 20,707,184.95

Statutory Excess to Fund Balance 810,455.31 848,604.48

Adjustment to Excess Before Fund Balance:

Expenditures included above which are by Statute

Deferred Charges to Budget of Succeeding Year 95,000.00

Statutory Excess to Fund Balance 810,455.31 943,604.48 Fund Balance

Balance January 1 1,127,955.17 1,032,600.69 1,938,410.48 1,976,205.17

Decreased by:

Utilized as Anticipated Revenue 975,000.00 848,250.00

Balance December 31 A $ 963,410.48 $ 1,127,955.17



A-2 1 of3

STATEMENT OF REVENUE - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2017

Fund Balance Anticipated

Miscellaneous Revenue:

Municipal Co\lrt - Fines and Costs Interest on Investments Interest and Costs on Taxes Energy Receipts Tax Public and Private Revenues

Offset with Appropriations:

Body Armor Replacement Fund Clean Communities Grant

Receipts from Delinquent Taxes

Amount to be Raised by Taxes for Support of Municipal Budget: Local Tax for Municipal Purposes

Total Amount to be Raised by Taxes

Budget Totals

Nonbudget Revenue

$

Budget

975,000.00

45,000.00 3,000.00

52,000.00 315,438.00

1,221.79 15,511.56

432,171.35

260,000.00

2,838,066.71

2,838,066. 71

4,505,238.06

Added by NJSA 40A:4-87

$ 4,505,238.06 $ -0-======

$

Realized

975,000.00

81,136.18 3,240.12

50,517.70 315,438.00

1,221.79 15,511.56

467,065.35

Excess or Deficit*

$ 36,136.18 240.12

1,482.30

34,894.00

262,365.84 2,365.84

2,997,194.30 159,127.59

2,997,194.30 159,127.59

4,701,625.49 $ 196,387.43

207,422.27

$ 4,909,047.76

*


STATEMENT OF REVENUE-REGULATORY BASIS YEAR ENDED DECEMBER 31, 2017

(Continued)

Allocation of Current Tax Collections: Revenue from Collection of Current Taxes Allocated to:

Regional School Taxes County Taxes Local Municipal Open Space Tax Levy

Balance for Support of Municipal Budget

Add: Appropriation "Reserve for Uncollected Taxes"

Realized for Support of Municipal Budget

Analysis of Interest on Investments: Collected/Received by Treasurer Due from Animal Control Trust Fund Due from Other Trust Fund Due from General Capital Fund

$ 10,982,349.00 5,238,480.63

241,415.35

A-2 2 of3

$ 19,025,000.57

16,462,244.98 2,562,755.59

434,438.71

$ 2,997,194.30

$ 1,480.50 10.81

392.13 1,356.68

$ 3,240.12


STATEMENT OF REVENUE - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2017

(Continued)

Analysis ofNonbudget Revenue: Treasurer:

Alcoholic Beverage Licenses Cable Television Franchise Fees Fees:

Smoke Detector Planning Board Fees Zoning Permits Police Clerk

2% Administration Fee - Senior Citizens and Veterans Deductions Prior Year Unanticipated Grant Revenue Other Miscellaneous

Tax Collector: Miscellaneous

$ 8,525.00 15,496.00

3,336.00 4,468.38 1,592.00 5,095.12 5,432.09

634.51 90,000.00 72,066.72


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A-3 7 of 8

GREENWICH TOWNSHIP

CURRENT FUND

STATEMENT OF EXPENDITURES-REGULATORY BASIS


(Continued)

Analysis of

Adopted Budget

Cash Disbursed

Reserve for Uncollected Taxes

Reserve for Encumbrances

Deferred Charges:

Emergency Appropriation

Transfer to Appropriated Grant Reserves:

Federal and State Grants

Local Matching Funds

Less: Appropriation Refunds

A

Budget After

Modification

$ 4,505,238.06

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

ARE AN INTEGRAL PART OF THIS STATEMENT

$

$

Paid or

Charged

A-3

8 of8

3,941,168.87

434,438.71

9,779.63

95,000.00

16,733.35

1,612.75

4,498,733.31

91,412.88

4,407,320.43

GREENWICH TOWNSHIP COUNTY OF WARREN

2017 TRUST FUNDS

B

GREENWICH TOWNSHIP

COMPARATIVE BALANCE SHEET-TRUST FUNDS - REGULATORY BASIS

December 31,

ASSETS

Animal Control Fund:

Cash and Cash Equivalents:

Treasurer

Open Space Trust Fund:

Cash and Cash Equivalents

Due From Current Fund

Other Trust Funds:

Cash and Cash Equivalents

Due From Current Fund

Due From Current Fund - Tax Sale Premiums

Due from General Capital Fund

TOTAL ASSETS


Animal Control Fund:

Due to Current Fund

Due to the State ofNew Jersey

Reserve for Animal Control Expenditures

Open Space Trust Fund:

Due to General Capital

Reserve for Open Space Expenditures

Other Trust Funds:

Due To Current Fund

Reserve for:

Recreation Commission

Small Cities Grant

Escrow Deposits

Council on Affordable Housing

Tax Sale Premiums

Community Day

Storm Recovery

Public Defender

Fire Inspection Penalties

Parking Offenses Adjudication Act

TOTAL LIABILITIES, RESERVES AND FUND BALANCE

B-4

B-4

A

B-4

A

A

c

A

B-5

c

A

$

$

$

2017

1,911.91

1,911.91

866,653.90

1,037.88

867,691.78

629,974.18

16.20

69,700.00

923,815.38

1,623,505.76

2,493,109.45

14.43

53.40

1,844.08

1,911.91

48,500.00

819,191.78

867,691.78

49,011.47

75,453.35

210,051.04

1,179,135.47

99,890.01

528.37

1,265.92

5,143.05

2,615.08

412.00

1,623,505.76

$ 2,493,109.45

THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

ARE AN INTEGRAL PART OF THIS STATEMENT

2016

$ 1,377.87

1,377.87

1,494,586.22

1,494,586.22

636,818.05

923,815.38

1,560,633.43

$ 3,056,597.52

$ 3.62

10.80

1,363.45

1,377.87

1,494,586.22

1,494,586.22

1.67

42,254.34

75,129.84

213,008.76

1,189,305.70

30,190.01

1,847.06

1,265.92

3,401.05

3,837.08

392.00

1,560,633.43

$ 3,056,597.52


2017

GENERAL CAPITAL FUND

c GREENWICH TOWNSHIP

GENERAL CAPITAL FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS

December 31, Ref. 2017

ASSETS

Cash and Cash Equivalents C-2 $ 2,462,585.47

Due from Federal and State Grant Fund A 56,737.03 Due from Open Space Trust Fund B 48,500.00

Due from State of New Jersey: Department of Transportation 45,000.00

Deferred Charges to Future Taxation: Funded 950,000.00 Unfunded C-4 3,001,375.00

TOTAL ASSETS $ 6,564, 197 .50


Serial Bonds Payable C-8 $ 950,000.00

Bond Anticipation Notes Payable C-7 3,001,375.00

Improvement Authorizations: Funded C-5 90,879.19

Unfunded C-5 1,161,600.29

Due to Current Fund A 0.75 Due to Other Trust Funds B 923,815.38

Capital Improvement Fund C-6 42,974.00

Reserve For: Encumbrances 338,716.62

Recreational Facility Improvements 4,275.50

Fund Balance C-1 50,560.77

TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 6,564,197.50


2016

$ 443,790.58 45,000.00

45,000.00

1,015,000.00 798,325.00

$ 2,347,115.58

$ 1,015,000.00

42,379.19 324,849.28

93.46 923,815.38

10,424.00

4,275.50 26,278.77

$ 2,347,115.58

GREENWICH TOWNSHIP

GENERAL CAPITAL FUND STATEMENT OF FUND BALANCE - REGULATORY BASIS

Balance December 31, 2016 c

Increased by: Bond Anticipation Notes Premium



C-1

$ 26,278.77

24,282.00

$ 50,560.77

GREENWICH TOWNSIIlP

COUNTY OF WARREN

2017 WATER UTILITY FUND

NOT APPLICABLE

GREENWICH TOWNSHIP

COUNTY OF WARREN 2017

SEWER UTILITY FUND

E GREENWICH TOWNSHIP SEWER UTILITY FUND


December 31, Ref. 2017 2016

ASSETS

Operating Fund: Cash and Cash Equivalents E-4 $ 1,253,727.96 $ 1,248,660.07 Due From Sewer Utility Capital Fund E 96,164.00 94,455.74 Receivable with Full Reserve:

Consumer Accounts Receivable E-6 308,477.83 297,421.04

Total Operating Fund 1,658,369.79 1,640,536.85

Capital Fund: Cash and Cash Equivalents E-4 512,802.12 411,093.86

Total Capital Fund 512,802.12 411,093.86

TOTAL ASSETS $ 2,171,171.91 $ 2,051,630.71


Operating Fund: Appropriation Reserves:

Unencumbered E-3;E-9 $ 199,257.20 $ 91,464.08

Encumbered E-3;E-9 386.00 372.83 Total Appropriation Reserves 199,643.20 91,836.91 Prepaid Sewer Rents 21,378.99 7,070.81

Sewer Overpayments 2,065.76 16,336.95 Due to Current Fund A 41,043.79 5,043.79

Total Liabilities 264,131.74 120,288.46

Reserve for Receivables E 308,477.83 297,421.04 Reserve for Sewer Buybacks 19,740.87 Fund Balance E-1 1,066,019.35 1,222,827.35

Total Operating Fund 1,658,369.79 1,640,536.85

Capital Fund: Capital Improvement Fund E-11 409,592.62 309,592.62 Due to Sewer Utility Operating Fund E 96,164.00 94,455.74 Reserve for Preliminary Costs 7,045.50 7,045.50

Total Capital Fund 512,802.12 411,093.86

TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 2,171,171.91 $ 2,051,630.71


GREENWICH TOWNSHIP SEWER UTILITY OPERA TING FUND

COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE - REGULATORY BASIS

E-1

Year Ended December 31

Ref. 2017

Revenue and Other Income Realized

Fund Balance Utilized $ 254,500.00

Rents 579,794.68

Nonbudget Revenue 15,052.91

Other Credits to Income: Unexpended Balance of Appropriation Reserves 83,573.22

Total Income 932,920.81

Expenditures Budget Expenditures:

Operating 746,000.00

Capital Improvements 100,000.00

Statutory Expenditures 3,500.00

Total Expenditures 849,500.00

Excess in Revenue/Statutory Excess to Fund Balance 83,420.81

Fund Balance

Balance January 1 1,222,827.35 1,306,248.16

Decreased by: Utilized as Anticipated Revenue 254,500.00

Balance December 31 E $ 1,051,748.16


2016

$ 271,500.00

616,931.81 5,998.37

27,093.76

921,523.94

763,000.00 100,000.00

3,500.00

866,500.00

55,023.94

1,439,303.41

1,494,327.35

271,500.00

$ 1,222,827.35

GREENWICH TOWNSHIP SEWER UTILITY CAPITAL FUND

STATEMENT OF SEWER CAPITAL FUND BALANCE- REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE


E-IA

GREENWICH TOWNSHIP

SEWER UTILITY OPERA TING FUND

STATEMENT OF REVENUE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2017

Anticipated Realized

Operating Surplus Anticipated $ 254,500.00 $ 254,500.00

Sewer Rents 595,000.00 579,794.68

849,500.00 834,294.68

Nonbudget Revenue 15,052.91

$ 849,500.00 $ 849,347.59

Analysis of Sewer Rents: Collections $ 572,723.87

Prepaid Sewer Rents Applied 7,070.81

$ 579,794.68

Analysis of Non budget Revenue

Treasurer: Interest on Investments - Sewer Utility Operating Fund $ 1,156.25

Interest on Investments - Sewer Utility Capital Fund 1,708.26

Miscellaneous 6,865.41

9,729.92

Collector:

Interest on Sewer Rents 5,322.99

$ 15,052.91


E-2

Excess or

Deficit*

$ 15,205.32 *

15,205.32 15,052.91

$ 152.41 *

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PUBLIC ASSISTANCE FUND

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GREENWICH TOWNSHIP


GENERAL FIXED ASSETS ACCOUNT GROUP

ASSETS

Land Buildings

GREENWICH TOWNSHIP GENERAL FIXED ASSETS ACCOUNT GROUP

BALANCE SHEET - REGULATORY BASIS

Equipment and Vehicles

TOT AL ASSETS

RESERVES

Reserve for Fixed Assets

TOTAL RESERVES


December 31, 2017

H

$ 3,539,800.00 377,400.00

3,539,871.00

$ 7,457,071.00

$ 7,457,071.00

$ 7,457,071.00

Note 1:

GREENWICH TOWNSHIP NOTES TO FINANCIAL STATEMENTS


Summary of Significant Accounting Policies

A. Reporting Entity

1

Except as noted below, the financial statements of Greenwich Township include every board, body, officer or commission supported and maintained wholly or in part by funds appropriated by Greenwich Township, as required by N.J.S. 40A:5-5. Accordingly, the financial statements of Greenwich Township do not include the operations of the Volunteer Fire and First Aid Squads.

Governmental Accounting Standards Board ("GASB") Codification Section 2100, "Defining the Financial Reporting Entity" establishes standards to determine whether a governmental component unit should be included in the financial reporting entity. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (1) it is able to impose its will on that organization or (2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A legally separate, tax-exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents. (2) The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. (3 ). The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. As the financial reporting entity was established in accordance with New Jersey statutes, the requirements of GASB Codification Section 2100 were not followed and, accordingly, the reporting entity could be different from accounting principles generally accepted in the United States of America.

B. Description of Funds

The accounting policies of Greenwich Township conform to the accounting practices applicable to municipalities which have been prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"). Such practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, Greenwich Township accounts for its financial transactions through the following separate funds:

Current Fund - Resources and expenditures for governmental operations of a general nature, including federal and state grant funds.

Trust Fund - Receipt, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created.

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

Sewer Utility and Capital Funds - Account for the operations, resources and expenditures for the payment of and acquisition of capital facilities of the municipally owned Sewer Utility.

Note 1:



Summary of Significant Accounting Policies (Cont'd)

B. Description of Funds (Cont'd)

2

General Fixed Assets Account Group - Estimated values of land, buildings and certain fixed assets of the Township discussed in Note IE.

C. Basis of Accounting

Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

The more significant accounting policies in New Jersey follow.

Revenue is recorded when received in cash except for certain amounts which may be due from the State of New Jersey and for the prepayment of future years' revenue. Grant revenue is realized in the operating funds when it is budgeted and in the capital funds when improvements are authorized. The amounts recorded as property taxes and consumer accounts receivable have not been included in revenue. Amounts that are due to the municipality, which are susceptible of accrual, are recorded as receivables with offsetting reserves in the Current Fund.

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

1. Accumulated unpaid vacation, sick pay and other employee amounts are not accrued.

2. Prepaid expenses, such as insurance premiums applicable to subsequent periods, are charged to current budget appropriations in total.

3. Principal and interest on long-term debt are recognized when due.

Expenditures, if any, in excess of appropriations, appropriation reserves or ordinances become deferred charges which must be raised by future taxes. Outstanding encumbrances at December 31 are reported as a cash liability in the financial statements and constitute part of the statutory appropriation reserve balance. Appropriation reserves covering unexpended appropriation balances are automatically created at December 3 1 of each year and recorded as liabilities, except for amounts which may be cancelled by the governing body. Appropriation reserves are available, until lapsed at the close of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding fiscal year. Lapsed appropriation reserves are recorded as income.

GREENWICH TOWNSHIP NOTES TO FINANCIAL ST A TEMENTS


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

C. Basis of Accounting (Cont'd)

3

Had the Township's financial statements been prepared under generally accepted accounting principles, encumbrances would not be considered as expenditures; appropriation reserves would not be recorded; revenue susceptible to accrual would have been reflected without offsetting reserves; Federal and State grants and assistance would be recognized when earned, not when awarded; and inventories would not be reflected as expenditures at the time of purchase, investments would generally be stated at fair value, fixed assets purchased by the Sewer Utility Capital Fund would be depreciated, and the Township's net pension liability and related deferred inflows and outflows would be recorded.

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

D. Deferred Charges to Future Taxation

The General Capital Fund balance sheet includes both funded and unfunded deferred charges. Funded deferred charges represent improvement authorizations where permanent financing has been obtained. Unfunded deferred charges represent improvement authorizations where no or temporary financing has been obtained. A municipality can permanently finance unfunded deferred charges through budget appropriation, grant funds, or by issuing bonds, loans or capital lease purchase agreements.

E. Other significant accounting policies include:

Management Estimates - The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of revenue and expenditures/expenses during the period reported. Actual results could differ from those estimates.

Cash and Cash Equivalents - Amounts include petty cash, change funds, amounts on deposit, and short-term investments with original maturities of three months or less.

Investments - Investments are stated a cost.

Allowance for Uncollectible Accounts - No allowance for uncollectible accounts has been recorded as all amounts are considered collectible.

Compensated Absences - Expenditures relating to unused vested accumulated vacation and sick pay are not recorded until paid.

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

Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves which are created by charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves.



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

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

4

Inventories of Supplies - The cost of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The cost of inventories is not included on the various balance sheets.

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

General Fixed Assets- In accordance with New Jersey Administrative Code accounting requirements, as promulgated by the Division of Local Government Services, the Town has developed a fixed assets accounting and reporting system based on the following:

General fixed assets are recorded at historical cost as estimated by the independent appraisal company which conducted the inventory of the Township's assets in 2017. Infrastructure assets are not included in general fixed assets, as per state directive. Major renewals and betterments are charged to the asset accounts; maintenance and minor repairs and replacements, which do not improve or extend the lives of the respective assets, are expensed currently. Donated fixed assets are valued at their fair market value on the date donated. No depreciation has been provided for on general fixed assets. The total value recorded for general fixed assets is offset by a reserve. When properties are retired or otherwise disposed of, the asset and the reserve are adjusted accordingly. Assets recorded in the general fixed assets account group may also be recorded in the current fund, general capital fund and sewer utility fund. The values recorded in the general fixed assets account group, the current fund, the general capital fund and sewer utility fund may not always agree due to differences in valuation methods, timing of recognition of assets, and the recognition of infrastructures. Fixed assets are reviewed for impairment.

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

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

Note 2: Long-Term Debt



5

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

Summary of Municipal Debt

Issued General:

Bonds and Notes

Authorized but not Issued: General:

Bonds and Notes Subtotal Debt

Less: Reserve to Pay Debt Service

Net Bonds and Notes Issued and Authorized but not Issued

2017

$ 3,951,375.00

3,951,375.00

96,389.16

$ 3,854,985.84

Summary of Statutory Debt Condition - Annual Debt Statement

December 31, 2016

$ 1,015,000.00

798,325.00 1,813,325.00

- 0 -

$ 1,813,325.00

2015

$ 1,075,000.00

798,325 1,873,325.00

- 0 -

$ 1,873,325.00

The summarized statement of debt condition, which follows, is prepared in accordance with the required method of setting up the Annual Debt Statement and indicates a statutory net debt of 0.569%.

School Debt General Debt

Gross Debt

$ 3,586,843.00 3,951,375.00

$ 7,538,218.00

Deductions

$ 3,586,843.00 96,389.16

$ 3,683,232.16

NetDebt

$ 3,854,985.84

$ 3,854,985.84

Net Debt: $3,854,985.84 divided by Average Equalized Valuations of $693,982,937.33 of Real Property= 0.569%.



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

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

3-1/2% Average Equalized Valuation of Real Property

Net Debt

Remaining Borrowing Power

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

Cash Receipts from Fees, Rents or Other Charges for Year

Deductions:

Operating and Maintenance Costs

Excess in Revenue

$ 24,289,402.81

3,854,985. 84

$ 20,434,416.97

$ 849,347.59

749,500.00

$ 99,847.59

6

Footnote: If there is an "excess in revenue", all such utility debt is deductible. If there is a "deficit", then utility debt is not deductible to the extent of 20 times such deficit amount.

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

Summary of Municipal Debt Issued and Outstanding - Current Year

Balance Balance 12/31/2016 Retirements 12/31/2017

Serial Bonds: General Capital Fund $ 1,015,000.00 $ 65,000.00 $ 950,000.00

$ 1,015,000.00 $ 65,000.00 $ 950,000.00

Summary of Municipal Debt Issued and Outstanding- Prior Year

Balance Balance 12/31/2015 Retirements 12/31/2016

Serial Bonds: General Capital Fund $ 1,075,000.00 $ 60,000.00 $ 1,015,000.00

$ 1,075,000.00 $ 60,000.00 $ 1,015,000.00



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

Schedule of Annual Debt Service for Principal and Interest for Bonded Debt Issued and Outstanding

Calendar Year

2018 $

2019

2020

2021

2022

2023-2027

2028-2029

$

General Capital Principal

70,000.00

80,000.00

80,000.00

80,000.00

80,000.00

400,000.00

160,000.00

950,000.00

$

Interest

34,650.00

32,900.00

30,500.00

28,100.00

25,600.00

80,000.00

9,600.00

$ 241,350.00

Total

$ 104,650.00

112,900.00

110,500.00

108,100.00

105,600.00

480,000.00

169,600.00

$ 1,191,350.00

7

The Township's bonded debt and notes issued and outstanding on December 31, 2017 is described as follows:

General Capital Serial Bonds Final Maturity

Purpose

General Improvement Bonds General Improvement Term Bonds

- Sinking Funds

Date Interest Rate

7/15/2029 2.125-4.000%

7/15/2026 4.000%

General Capital Bond Anticipation Notes Final Maturity

Purpose

Various Capital Improvements

Total Debt Issued and Outstanding

Net Pension Liability

Date Interest Rate

10/11/2018 2.25%

Balance Outstanding Dec. 31, 2017

$ 550,000.00

400,000.00 $ 950,000.00

Balance Outstanding Dec. 31,2017

$ 3,001,375.00

$ 3,951,375.00

The State of New Jersey Public Employees' Retirement System's (PERS) net pension liability was calculated to be $1,166,468 at December 31, 2016. The State of New Jersey Police and Firemen's Retirement System's (PFRS) net pension liability was calculated to be $4,907,143 at December 31, 2016. See Note 5 for further information on the PERS and PFRS.

Note 3: Fund Balances Appropriated

Fund balances at December 31, 2017, which will be appropriated and included as anticipated revenue in the Current Fund and Sewer Utility Fund budgets for the year ending December 31, 2018, are not known as of the date of this report.

Note 4: Local School Taxes



8

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

Local School Taxes have been raised and the liability deferred by statute, resulting in the school taxes payable set forth in the Current Fund Liabilities as follows:

Balance of Tax Amount Deferred

Local School District Tax Payable

Note 5: Pension Plans

Local School Tax Balance

Dec. 31, 2017

$ 5,511,165.48 2,652,249. 00

$ 2,858,916.48

Balance Dec. 31, 2016

$ 5,354,091.02 2,402,249.00

$ 2,951,842.02

Increase/ (Decrease)

$ 157,074.46 250,000.00

$ (92,925.54)

Township employees participate in one of the two contributory, defined benefit public employee retirement systems: the State of New Jersey Public Employee's Retirement System (PERS) or the State of New Jersey Police and Firemen's Retirement System (PFRS).

A. Public Employees' Retirement System (PERS)

Plan Description

The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-sharing multipleemployer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and Benefits (the Division). For additional information about the PERS, please refer to the Division's Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/pensions/annrprts.shtml.

Benefits Provided

The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of PERS. The following represents the membership tiers for PERS

Tier Defmition

1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 20( 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22,

2010 4 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011



Note 5: Pension Plans (Cont'd)

A. Public Employees' Retirement System (PERS) (Cont'd)

9

Service retirement benefits of 1/551h of final average salary for each year of service credit is available to Tiers 1 and 2 members upon reaching age 60 and to Tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final average salary for each year of service credit is available to Tier 4 members upon reaching age 62 and to Tier 5 members upon reaching age 65. Early retirement benefits are available to Tiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 before age 62 with 25 or more years of service credit and Tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.

Contributions

The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members and contributing members. The local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. Township contributions to PERS amounted to $34,989 for 2017.

The employee contribution rate was 7.20% effective July 1, 2016 and increased to 7.34% effective July 1, 2017. Subsequent increases after October 1, 2011 are being phased in over 7 years effective on each July 1st to bring the total pension contribution rate to 7 .5% of base salary as of July 1, 2018.

Pension Liabilities and Pension Expense

At December 31, 2016, the Township's liability was $1,166,468 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015 which was rolled forward to June 30, 2016. The Township's proportion of the net pension liability was based on a projection of the Township's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2016, the Township's proportion was 0.011%, which was a decrease of 0.001% from its proportion measured as of June 30, 2015. The Township has rolled forward the net pension liability to December 31, 2016 with no adjustments. The State of New Jersey Public





10

Employee's Retirement System (PERS)' valuation cycle is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of valuation. The Division of Local Government Services, Department of Community Affairs, State of New Jersey is permitting municipalities to include the June 30, 2016 pension information in the Notes to the Financial Statements as the June 30, 2017 pension information has not been released as of the date of this audit.

For the year ended December 31, 2017, the Township recognized actual pension expense in the amount of $34,989.

Actuarial Assumptions

The total pension liability for the June 30, 2016 measurement date was determined by an actuarial valuation as of July 1, 2015 which was rolled forward to June 30, 2016. This actuarial valuation used the following actuarial assumptions:

Inflation Rate Salary Increases: Through 2026 Thereafter

Investment Rate of Return

3.08%

1.65 - 4.15% based on age 2.65 - 5.15% based on age 7.65%

Pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for male and female active participants. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2013 using a generational approach based on the plan actuary's modified MP-2014 projection scale. Post-retirement mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (set back 1 year for males and females) for service retirements and beneficiaries of former members and a one year static projection based on mortality improvement Scale AA. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from the base year of 2013 using a generational approach based on the plan actuary's modified MP-2014 projection scale. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward one year for females).

The actuarial assumptions used in the July 1, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements.

Long Term Expected Rate of Return

In accordance with State statute, the long-term expected rate of return on pension plan investments (7.65% at June 30, 2016) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These





11

ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PERS' target asset allocation as of June 30, 2016 are summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return

Cash 5.00% 0.87%

U.S. Treasuries 1.50% 1.74%

Investment Grade Credit 8.00% 1.79%

Mortgages 2.00% 1.67%

High Yield Bonds 2.00% 4.56%

Inflation-Indexed Bonds 1.50% 3.44%

Broad U.S. Equities 26.00% 8.53%

Developed Foreign Equities 13.25% 6.83%

Emerging Market Equities 6.50% 9.95%

Private Equity 9.00% 12.40%

Hedge Funds/ Absolute Return 12.50% 4.68%

Real Estate (Property) 2.00% 6.91%

Commodities 0.50% 5.45%

Global Debt ex. U.S. 5.00% -0.25%

REIT 5.25% 5.63%

Discount Rate

The discount rate used to measure the total pension liability was 3.98% as of June 30, 2016. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.65% and a municipal bond rate of 2.85% as of June 30, 2016 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based upon the contribution rate in the most recent fiscal year. The local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2034. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2034, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.


YEAR ENDED DECEMBER 3 I, 20I 7 (Continued)



I2

Sensitivity of the Township's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the Township's proportionate share of the collective net pension liability as of December 3 I, 20 I 6 calculated using the discount rate as disclosed below, as well as what the Township's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage-point lower or I-percentage-point higher than the current rate:

Township's proportionate share of the Net Pension Liability

Pension Plan Fiduciary Net Position

December 3I, 2016 1%

Decrease (2.98%)

$ l,429,37I

Current I% Discount Rate Increase

(3.98%) (4.98%)

$ I,166,468 $ 949,420

Detailed information about the pension plan's fiduciary net position is available in the separately issued PERS financial statements.

B. Police and Firemen's Retirement System (PFRS)

Plan Description

The State of New Jersey, State of New Jersey Police and Firemen's Retirement System (PFRS), is a cost-sharing multiple-employer defined benefit pension plan administered by the State of New Jersey Division of Pensions and Benefits (the Division). For additional information about the PFRS, please refer to the Division's Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/pensions/annrprts.shtml.

Benefits Provided

The vesting and benefit provisions are set by N.J.S.A. 43:I6A. The PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after 4 years of service.

GREENWICH TOWNSHIP NOTES TO FINANCIAL ST A TEMENTS




Benefits Provided (Cont'd)

The following represents the membership tiers for PFRS:

Tier Defmition

1 Members who were enrolled prior to May 22, 2010 2 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28,

2011 3 Members who were eligible to enroll on or after June 28, 2011

13

Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30 years plus 1 % for each year of service in excess of 30 years.

Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final compensation plus I% for each year of creditable service over 25 years but not to exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in which case benefits would begin at age 55 equal to 2% of final compensation for each year of service.

Contributions

The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members and contributing members. The Local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual amounts over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of the assets.

Special Funding Situation

Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State . if certain circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a nonemployer contributing entity. The June 30, 2016 State special funding situation net pension liability amount is the accumulated difference between the annual




B. Police and Firemen's Retirement System (PFRS) (Cont'd)

14

actuarially determined State obligation under the special funding situation and the actual State contribution through the valuation date. The fiscal year ending June 30, 2016 State special funding situation pension expense is the actuarially determined contribution amount that the State owes for the fiscal year ending June 3 0, 2016. The pension expense is deemed to be a State administrative expense due to the special funding situation. Since the local participating employers do not contribute under this legislation directly to the plan (except for employer specific funded amounts), there is no net pension liability or deferred outflows or inflows to report in the financial statements of the local participating employers related to this legislation. However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities' total proportionate share of the collective net pension liability that is associated with the local participating employer.

Township contributions to PFRS amounted to $209,448 for the year ended December 31, 2017. During the fiscal year ended June 30, 2016, the State of New Jersey contributed $15,790 to the PFRS for normal pension benefits on behalf of the Township, which is less than the contractually required contribution of $52,632.

The employee contributions for PFRS are I 0.00% of employees' annual compensation, as defined.


At December 31, 2016, the Township's liability for its proportionate share of the net pension liability was $4,907, 14 3. The net pension liability was measured as of June 3 0, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015 which was rolled forward to June 30, 2016. The Township's proportion of the net pension liability was based on a projection of the Township's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2016, the Township's proportion was 0.026%, which was an increase of 0.003% from its proportion measured as of June 30, 2015. The Township has rolled forward the net pension liability to December 31, 2016 with no adjustments. The State of New Jersey Police and Firemen's Retirement System (PFRS)' valuation cycle is July 1 instead of December 31. The roll forward methodology puts them a year in arrears in terms of valuation. The Division of Local Government Services, Department of Community Affairs, State of New Jersey is permitting municipalities to include the June 30, 2016 pension information in the Notes to the Financial Statements as the June 30, 2017 pension information has not been released as of the date of this audit.

Additionally, the State's proportionate share of the net pension liability attributable to the Township is $4,907,143as of June 30, 2016. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015 which was rolled forward to June 30, 2016. The State's proportionate share of the net pension liability associated with the Township was based on a projection of the Township's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2016, the State's proportion was 0.026%, which was an increase of 0.003% from its proportion measured as of June 30, 2015 which is the same proportion as the Township's. The Township has rolled forward the net pension liability to December 31, 2016 with no adjustments. The State of New Jersey Police and Firemen's Retirement System (PFRS) valuation cycle is July I instead of






December 31. The roll forward methodology puts them a year in arrears in terms of valuation.

Township's Proportionate Share of the Net Pension Liability

State's Proportionate Share of the Net Pension Liability Associated

with the Township

Total Net Pension Liability

$

$

4,907,143

412,078

5,319,221

15

For the year ended December 31, 2017, the Township recognized total pension expense of $209,448.

Actuarial Assumptions

The total pension liability for the June 30, 2016 measurement date was determined by an actuarial valuation as of July 1, 2015 which was rolled forward to June 30, 2016. This actuarial valuation used the following actuarial assumptions:

Inflation Rate Salary Increases:

Through 2026 Thereafter

Investment Rate of Return

3.08%

2.10% - 8.98% based on age 3.10% - 9.98% based on age 7.65%

Pre-retirement mortality rates were based on the RP-2000 Pre-retirement mortality tables projected thirteen years using Projection Scale BB and then projected on a generational basis using the plan actuary's modified 2014 projection scales. Post-retirement mortality rates for male service retirements and beneficiaries are based on the RP-2000 Combined Healthy Mortality Tables projected one year using Projection Scale AA and two years using the plan actuary's modified 2014 projection scales, which was further projected on a generational basis using the plan actuary's modified 2014 projection scales. Post-retirement mortality rates for female service retirements and beneficiaries are based on the RP-2000 Combined Healthy Mortality Tables projected thirteen years using Projection Scale BB and then two years using the plan actuary's modified 2014 projection scales, which was further projected on a generational basis using the plan actuary's modified 2014 projection scales. Disability retirement rates were based on the special mortality tables used for the period after disability retirement.

The actuarial assumptions used in the July 1, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, 2013.




B. Police and Firemen's Retirement System CPFRS) (Cont'd)

Long Term Expected Rate of Return

16

In accordance with State statute, the long-term expected rate of return on pension plan investments (7.65% at June 30, 2016) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PFRS' target asset allocation as of June 30, 2016 are summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return

Cash 5.00% 0.87% U.S. Treasuries 1.50% 1.74% Investment Grade Credit 8.00% 1.79% Mortgages 2.00% 1.67% High Yield Bonds 2.00% 4.56% Inflation-Indexed Bonds 1.50% 3.44% Broad U.S. Equities 26.00% 8.53% Developed Foreign Equities 13.25% 6.83% Emerging Market Equities 6.50% 9.95% Private Equity 9.00% 12.40% Hedge Funds/Absolute Return 12.50% 4.68% Real Estate (Property) 2.00% 6.91% Commodities 0.50% 5.45% Global Debt ex. U.S. 5.00% -0.25% REIT 5.25% 5.63%

Discount Rate - PFRS

The discount rate used to measure the total pension liability was 5.55% as of June 30, 2016. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.65% and a municipal bond rate of 2.85% as of June 30, 2016 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers and the nonemployer contributing entity will be made based on the contribution rate in the most recent fiscal year. The


YEAR ENDED DECEMBER3I, 20I7 (Continued)



Discount Rate (Cont'd)

I7

State employer contributed 30% of the actuarially determined contributions and the local employees contributed I 00% of their actuarially determined contributions. Based on those assumptions, the pension plan's_fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2050. Therefore, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through 2050, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

Sensitivity of the Total Net Pension Liability (including the State's proportionate share of the net pension liability attributable to the Township) to Changes in the Discount Rate

The following presents the total net pension liability (including the State's proportionate share of the net pension liability attributable to the Township) as of December 3 I, 20I6 calculated using the discount rate as disclosed above, as well as what the collective net pension liability would be if it were calculated using a discount rate that is I-percentage-point lower or I-percentage-point higher than the current rate:

December 31, 20I6

Township's proportionate share of the NPL and the State's proportionate share of the Net

Pension Liability associated with the Township

Pension

Plan Fiduciary Net Position - PFRS

$

I%

Decrease (4.55%)

6,858,745

Current

Discount Rate (5.55%)

$ 5,3I9,22I $

I% Increase (6.55%)

4,063,83I

Detailed information about the PFRS's fiduciary net position is available in the separately issued PFRS financial statements.

Note 6: Accrued Sick and Vacation Benefits

The Township has permitted employees to accrue unused vacation and sick pay, which may be taken as time off or paid at a later date at an agreed-upon rate. It is estimated that the current cost of such unpaid compensation would approximate $350,778.34. However, it is expected that the cost of such unpaid compensation would be included in the Township's budget operating expenditures in the year in which it is used.



Note 7: Selected Tax Information

18

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

Tax Rate

Apportionment of Tax Rate

Municipal

County

Regional School

Assessed Valuations

2017

2016

2015

2017

$ 3.216

0.513

0.869 1.834

$ 598,128,790.00

Comparison of Tax Levies and Collections Currently

2016

$ 3.176

0.504 0.878

1.794

$ 595,612,061.00

2015

$ 3.117

0.484

0.897

1.736

$ 595,025,740.00

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

Current~

Cash Percentage of Year Tax Levy Collections Collections

2017 $ 19,407,124.01 $ 19,025,000.57 98.03%

2016 18,932,446.38 18,655,804.02 98.53% 2015 18,573,279.53 18,225,595.54 98.12%

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



Note 8: Cash and Cash Equivalents

19

Cash and cash equivalents include change funds, amounts on deposit, and short-term investments with original maturities of three months or less.

Investments are stated at cost. The Township classifies certificates of deposit which have original maturity dates of more than three months but less than twelve months from the date of purchase, as investments.

GASB requires disclosure of the level of custodial credit risk assumed by the Township in its cash, cash equivalents and investments, if those items are uninsured or unregistered. Custodial risk is the risk that in the event of bank failure, the government's deposits may not be returned.

Interest Rate Risk - In accordance with its cash management plan, the Township ensures that any deposit or investments matures within the time period that approximates the prospective need for the funds, deposited or invested, so that there is not a risk to the market value of such deposits or investments.

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

Custodial Credit Risk - The Township's policy with respect to custodial credit risk requires that the Township ensures that Township funds are only deposited in financial institutions in which NJ municipalities are permitted to invest their funds.

Deposits:

New Jersey statutes require that municipalities deposit public funds in public depositories located in New Jersey which are insured by the Federal Deposit Insurance Corporation, or by any other agency of the United States that insures deposits made in public depositories.

New Jersey statutes require public depositories to maintain collateral for deposits of public funds that exceed insurance limits as follows:

The market value of the collateral must equal 5% of the average daily balance of collected public funds on deposit, and

In addition to the above collateral requirement, if the public funds deposited exceed 75% of the capital funds of the depository, the depository must provide collateral having a market value at least equal to 100% of the amount exceeding 75%

All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or a banking institution that is a member of the Federal Reserve System and has capital funds of not less than $25,000,000.



20

Note 8: Cash and Cash Equivalents (Cont'd)

Investments

New Jersey statutes permit the Township to purchase the following types of securities:

(1) Bonds or other obligations of the United States of America or obligations guaranteed by the United States of America;

(2) Government money market mutual funds;

(3) Any obligation that a federal agency or a federal instrumentality has issued in accordance with an act of Congress, which security has a maturity date not greater than 397 days from the date of purchase, provided that such obligation bears a fixed rate of interest not dependent on any index or other external factor;

(4) Bonds or other obligations of the local unit or bonds or other obligations of school districts of which the local unit is a part or within which the school district is located;

(5) Bonds or other obligations, having a maturity date not more than 397 days from the date of purchase, approved by the Division of Local Government Services in the Department of Community Affairs for investment by local units;

( 6) Local government investment pools;

(7) Deposits with the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L. 1977, c.281 (C.52:18A-90.4); or

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

(a) the underlying securities are permitted investments pursuant to paragraphs (1) and (3) above;

(b) the custody of collateral is transferred to a third party;

(c) the maturity of the agreement is not more than 30 days;

( d) the underlying securities are purchased through a public depository as defined in section 1ofP.L.1970, c.236 (C.17:9-41); and

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



Note 8: Cash and Cash Equivalents (Cont'd)

Investments (Cont'd)

21

As of December 31, 2017, cash and cash equivalents of the Greenwich Township consisted of the following:

NJ Cash Checking Management

Fund Accounts Fund Total

Current Fund $ 5,116,239.36 $ 5,116,239.36 Animal Control Trust Fund 1,911.91 1,911.91 Other Trust Fund 629,974.18 629,974.18 Open Space Trust Fund 866,653.90 866,653.90 GeneralCaprtalFund 2,461,995.43 $ 590.04 2,462,585.47 Sewer Utility Operating Fund 1,253,727.96 1,253,727.96 Sewer Utility Caprtal Fund 512,802.12 512,802.12

$ 10,843,304.86 $ 590.04 $ 10,843,894.90

During the period ended December 31, 2017, the Township did not hold any investments. The carrying amount of the Township's cash and cash equivalents at December 31, 2017, was $10,843,894.90 and the bank balance was $11,420,678.27. The $590.04 invested with the State of New Jersey Cash Management Fund is uninsured and/or unregistered.

Note 9: Risk Management

The Township is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Health benefits are obtained through the State Health Benefits Plan.

Greenwich Township is a member of the Public Alliance Insurance Coverage Fund, (the "Fund"). The Fund provides its members with workers' compensation, employers' liability, liability other than motor vehicles, property damages other than motor vehicles, motor vehicle and environmental msurance coverage.

The Fund is a risk-sharing public entity risk pool that is both an insured and self-administered group of municipalities established for the purpose of providing low-cost insurance coverage for their members in order to keep local property taxes at a minimum.

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



Note 9: Risk Management (Cont'd)

22

The Fund can declare and distribute dividends to members upon approval of the State of New Jersey Department of Banking and Insurance. These distributions are divided amongst the members in the same ratio as their individual assessment relates to the total assessment of the membership body.

The December 31, 2017 audit report of the Public Alliance Insurance Coverage Fund is not filed as of the date of this audit. Selected summarized financial information for the Fund as of December 31, 2016 is as follows:

Public Alliance

Insurance Coverage Fund

Total Assets $ 17,307,071

Net Position $ 11,569,538

Total Revenue $ 6,157,624

Total Expenditures $ 4,163,154

Change in Net Position $ 1,994,470

Member Dividends $ -0-

Financial statements for this fund are available at the Office of the Executive Director:

Public Alliance Insurance Coverage Fund Public Entity Group Administrative Services 51 Everett Drive West Windsor, NJ 08550 (609) 275-1155

New Jersey Unemployment Compensation Insurance

The Township has elected to fund its New Jersey Unemployment Compensation Insurance under the "Contributory Method". Under this plan, the Township is required to remit employee withholdings to the State on a quarterly basis. All the Township's claims are paid by the State.



Note 10: Interfund Receivables and Payables

The following interfund balances remain on the balance sheet at December 31, 2017: Interfund Interfund

Fund Receivables Pa~ables

Current Fund: $ 41,058.97 $ 264,994.18

Federal and State Grant Fund 194,240.10 56,737.03

Animal Control Fund 14.43

Other Trust Funds 994,569.46 48,500.00

General Capital Fund 105,237.03 923,816.13

Sewer Utility Operating Fund 96,164.00 41,043.79

Sewer Utility Capital Fund 96,164.00

$ 1,431,269.56 $ 1,431,269.56

23

The interfunds receivable in the Current Fund due from the Other Trust Funds, Animal Control Fund, and Sewer Utility Operating Fund represents interest earned in those funds and amounts paid through Current Fund on behalf of these funds which were not transferred to the Current Fund by December 31. The interfund payable from the Current Fund to the Federal and State Grant Fund represents the balance of grant receipts net of expenditures in the Current Fund which were not transferred by December 31. The interfund receivable in the Sewer Utility Operating Fund due from the Sewer Utility Capital Fund represents amounts paid through Sewer Utility Operating Fund on behalf of the Sewer Utility Capital Fund which were not transferred to the Sewer Utility Operating Fund by December 31.

Note 11: Contingent Liabilities

The Township is periodically involved in various lawsuits arising in the normal course of business, including claims for property damage, personal injury, and various contract disputes. The Township vigorously contests these lawsuits and believes the ultimate resolution would not have a material adverse effect on their financial position. The Township is aware of a potential liability of approximately $300,000 due to pending tax appeals which may be a liability in the 2018 year. The Township plans on funding these appeals during 2018 in the event that they are realized.

Amounts received or receivable from grantors, principally the federal and state governments are subject to regulatory requirements and adjustments by the agencies. Any disallowed claims, including amounts previously recognized by the Township as revenue, would constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantors cannot be determined at this time, although Township officials expect any such amounts would be immaterial.

Note 12: Economic Dependency

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



Note 13: Deferred Compensation Plans

24

The Township offers its employees deferred compensation plans (the "plans") created in accordance with Section 457 of the Internal Revenue Code. The plans, which are administered by V ALIC and AXA Equitable, are available to all Township employees and permit participants to defer a portion of their salary. The deferred compensation is not available to employees until termination, retirement, unforeseeable emergency or upon death to their beneficiaries.

Note 14: Open Space Trust Fund

On November 2, 1997, the Township created an Open Space Trust Fund with a tax levy of up to $.02 per $100 of assessed valuation. In 2000, the Township elected to increase the maximum Open Space Trust Fund tax levy up to $.03 per $100 of assessed valuation. In 2004, the Township elected to increase the maximum Open Space Trust Fund tax levy up to $.04 per $100 of assessed valuation. The tax levy for the calendar year 2017 was established at $.04 per $100 of assessed valuation. The funds collected are used to acquire and maintain open space property in the Township. As of December 31, 2017, the balance in the Open Space Trust Fund was $819,191.78.

Note 15: Accounts Payable

As of December 31, 2017, the Township had $311.75 of accounts payable to vendors in the Current Fund.

GREENWICH TOWNSHIP

SUPPLEMENTARY DATA

TOWNSHIP OF GREENWICH

OFFICIALS IN OFFICE AND SURETY BONDS YEAR ENDED DECEMBER 31, 2017

Schedule 1

Name Title

Amount of Bond Name of Corporate Surety

Robert Barsony

Paul Beam Frank Marchetta

William Spencer William Kanyuk

Kimberley Cooney

Kathleen Reinalda Bonnie Flemming

Eloise Hagaman

Joseph Mecsey, III

David Barretto Maria Andrews

David Barretto Amanda Wojcik

Michael Finelli Michael Lavery

Mayor

Deputy Mayor

Committeeman

Committeeman Committeeman Municipal Clerk/Registrar of Vital Statistics

Chief Financial Officer

Tax Collector/Sewer Rent Collector

Tax Assessor Emergency Management Coordinator

Zoning Officer

Land Use Board Secretru-Y

Fire Official Animal Control Officer Engineer

Municipal Attorney

All bonds were examined and were properly executed.

$1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF 1,000,000.00 * MELJIF

*A Public Employee Faithful Performance Blanket Position Bond is in force for $1,000,000 with the MELJIF. This bond

covers all employees.


2017 CURRENT FUND

A-4 GREENWICH TOWNSHIP

CURRENT FUND SCHEDULE OF CASH

Ref.

Balance December 31, 2016 A $ 5,003,190.72

Increased by Receipts: Tax Collector $ 20,128,144.04 Revenue Accounts Receivable 398,054.68 Miscellaneous Revenue Not Anticipated 206,645.82 Due Federal and State Grant Fund:

Unappropriated Grant Reserves 23,658.64 Due Other Trust Fund - Deposit in Error 410.00 Due General Capital Fund:

Bond Anticipation Notes 3,025,657.00 Interest 1,449.39

Due State of New Jersey: Marriage License Fees 300.00 Veterans and Senior Citizens' Deductions 31,090.83

Appropriation Refunds 91,412.88 Reserve to Pay Debt Service:

Insurance Proceeds 96,389.16 24,003,212.44 29 ,006,403 .16

Decreased by Disbursements: 2017 Appropriation Expenditures 3,941,168.87 2016 Appropriation Reserves 307,941.03 Local School Taxes 10,825,274.54 County Taxes 5,201,968.61 Tax Sale Premiums 61,500.00 Due Federal and State Grant Fund:

Appropriated Reserves 45,795.46 Transfer to Payroll Account 50,000.00 Due Open Space Trust Fund:

Open Space Tax Levy 240,377.47 Due General Capital Fund:

Bond Anticipation Note Sale 3,025,657.00 Due Sewer Utility Operating Fund 36,000.00 Due State of New Jersey:

Marriage License Fees 850.00 Third Party Lien Redemptions 140,365.14 Reserve for Codification of Ordinaces 7,644.00 Tax Overpayments Refunded 5,621.68

23,890,163.80

Balance December 31, 2017 A $ 5,116,239.36

Increased by Receipts: Taxes Receivable


SCHEDULE OF CASH - COLLECTOR FOR THE YEAR ENDED DECEMBER 31, 2017

Third Party Lien Redemptions Interest and Costs on Taxes 2018 Prepaid Taxes

$ 19,132,387.79 157,010.81 50,517.70

657,680.91

80,770.38 49,000.00

776.45

Tax Overpayments Tax Sale Premiums Other Miscellaneous

Total Receipts

Decreased by Disbursements: Paid to Municipal Treasurer

SCHEDULE OF CASH - GRANT FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

A-5

$ 20,128,144.04

$ 20,128,144.04

A-6

Yea

r

2016

2017

Bal

ance

D

ec. 3

1, 2

016

$ 26

2,34

1.18

$ 26

2,34

1.18

A

2017

Lev

y

$ 19

,407

,124

.01

$ 19

,407

,124

.01

Ana

lysi

s o

f20

17

Pro

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Pur

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Tax

A

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and

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Tax

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Cou

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Tax

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Cou

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Cou

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Tax

Lev

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Loc

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A A-7

GREENWICH TOWNSHIP

CURRENT FUND SCHEDULE OF TAX TITLE LIENS

FOR THE YEAR ENDED DECEMBER 31, 2017

Balance December 31, 2016 A

Increased by:

Transfer from 2017 Taxes Receivable

Decreased by: Foreclosures - Property Acquired for Taxes

A-8

$ 75,876.19

10,169.00

86,045.19

$ 86,045.19

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A

A-9

GREENWICH TOWNSHIP FEDERAL AND STATE GRANT FUND

SCHEDULE OF GRANTS RECEIVABLE


2017 Budget Transfer from

Balance Revenue Unappropriated

Dec. 31, 2016 Realized Grant Reserves

Highlands Plan Conformance Grant $ 17,968.83

Highlands Plan Assessment Grant 462.47

Highlands Water Protection Act 3,842.05

Body Armor Grant $ 1,221.79 $ 1,221.79

Over the Limit Under Arrest - 2011 2,238.56

New Jersey Department of Transportation: Safe Routes to School 135,700.00

Drive Sober or Get Pulled Over 5,000.00

Clean Communities Grant 214.25 15,511.56 15,511.56

$ 165,426.16 $ 16,733.35 $ 16,733.35

Ref. A

A-10

Cancelled

$ 17,968.83

462.47 3,842.05

2,238.56

135,700.00

5,000.00

214.25

$ 165,426.16

GENERAL GOVERNMENT: General Administration:

Other Expenses Mayor & Council:

Salaries & Wages Other Expenses

Municipal Clerk: Salaries & Wages Other Expenses Elections

Financial Administration: Salaries & Wages Other Expenses Payroll Services Audit Fees

Assessment of Taxes: Salaries & Wages Other Expenses


SCHEDULE OF 2016 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2017

Balance Balance After Dec. 31, 2016 Modification

$ 5,428.42 $ 6,359.42

0.26 0.26 434.03 434.03

92.65 92.65 3,939.13 3,939.13

287.50 287.50

5,249.96 5,249.96 3,678.37 3,678.37 4,164.14 4,164.14 1,550.00 1,550.00

1.06 1.06 3,464.77 3,464.77

Revenue Administration (Tax Collection): Salaries & Wages 4,517.18 4,517.18 Other Expenses 901.89 901.89

Legal Services and Costs: Other Expenses 56,858.42 56,858.42

Environmental Commission: Other Expenses 450.00 450.00

Engineering Services: Other Expenses 4,403.75 4,403.75

COAH Officer: Salaries & Wages 1.04 1.04 Other Expenses 3,000.00 3,000.00

Municipal Land Use Law: Planning Board:

Salaries & Wages 1,358.13 1,358.13 Other Expenses 407.02 407.02

PUBLIC SAFETY: Aid to Volunteer Fire Companies 2,887.66 2,887.66 Fire Hydrant Service: 165.24 23,821.24

Paid or Charged

$ 6,359.23 $

75.17 728.35

276.29

74.81

36,239.07

2,127.50

405.50

23,820.60

A-11 1 of3

Balance Lapsed

0.19

0.26 434.03

92.65 3,939.13

287.50

5,249.96 3,603.20 3,435.79 1,550.00

1.06 3,188.48

4,517.18 827.08

20,619.35

450.00

2,276.25

1.04 3,000.00

1,358.13 1.52

2,887.66 0.64

A-11

2 of3

GREENWICH TOWNSHIP

CURRENT FUND

SCHEDULE OF 2016 APPROPRIATION RESERVES

YEAR ENDED DECEMBER 31. 2017

(Continued)

Balance Balance After Paid or Balance

Dec. 31, 2016 Modification Charged Lapsed

PUBLIC SAFETY (Cont'd):

Police:

Salaries & Wages $ 63,422.73 $ 63,422.73 $ 63,422.73

Other Expenses 15,57331 15,573.31 14,726.93 $ 846.38

Police Dispatch/911 Coordinator:

Salaries & Wages 1.02 1.02 1.02

School Crossing Guard:

Salaries & Wages 2,279.20 2,279.20 2,279.20

Other Expenses 44.57 44.57 44.57

Municipal Court:

Salaries & Wages 131.00 131.00 131.00

First Aid Organization - Aid and Maintenance:

Other Expense 8.51 8.51 8.51

Office of Emergency Management:


Other Expenses 425.00 425.00 425.00

Fire and Safety Code Enforcement:


Other Expense 1,910.00 1,910.00 400.00 1,510.00

Municipal Prosecutor:

Other Expenses 200.00 200.00 200.00

STREETS AND ROADS:

Road Repairs and Maintenance:

Salaries & Wages 46,104.90 4,546.90 4,546.90

Other Expenses 39,756.95 39,756.95 19,128.87 20,628.08

Public Building and Grounds:

Other Expenses 16,523.53 32,094.53 31,794.20 300.33

HEALTH AND WELP ARE:

Animal Control:


Other Expenses 2,697.00 2,697.00 366.77 2,330.23

Environmental Health Services:

Other Expenses 175.00 175.00 175.00

A-11 3 of3


SCHEDULE OF 2016 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2017

(Continued)

Balance Balance After Paid or Balance Dec. 31, 2016 Modification Charged Lapsed

RECREATION AND EDUCATION:

Maintenance of Parks: Other Expenses $ 723.88 $ 723.8°8 $ 723.88

Recreation Services and Programs:

Salaries & Wages 1.00 1.00 1.00 Other Expenses 1,000.00 1,000.00 1,000.00

Celebration of Public Events: Other Expenses 5.74 5.74 5.74

UNIFORM CONSTRUCTION CODE: Fire Inspector:

Salaries & Wages 1.04 1.04 1.04 UNCLASSIFIED:

Utilities: Street Lighting 4,319.34 5,719.34 $ 5,719.16 0.18 Electricity 6,731.08 6,731.08 4,449.88 2,281.20 Telephone 5,324.12 5,324.12 2,479.44 2,844.68 Water 11.21 11.21 11.21 Gasoline & Diesel Fuel 11,879.55 11,879.55 2,731.67 9,147.88

Employee Group Insurance 10,353.10 10,353.10 2,701.84 7,651.26 General Liability Insurance 388.00 388.00 388.00 STATUTORY EXPENDITURES:

Social Security System (O.A.S.1.) 4,135.19 4,135.19 4,135.19 State Unemployment Insurance 3,225.77 3,225.77 3,225.77

CAPITAL IMPROVEMENTS:

Capital Projects - Road Improvements 91,274.69 91,274.69 90,024.77 1,249.92 Capital - Purchase of Vehicles 523.06 523.06 523.06

Shared Services Agreement: Pohatcong Court 1.00 1.00 1.00

Greenwich Township School District: Lawn & Field Cutting 3,110.00 3,110.00 3,110.00

$ 435,503.92 $ 435,503.92 $ 308,252.78 $ 127,251.14

Analysis of Balance at December 31, 2016: Ref.

Encumbered A $ 46,881.81 Unencumbered A 388,622.11

$ 435,503.92

Cash Disbursed $ 307,941.03 Accounts Payable 311.75

$ 308,252.78


SCHEDULE OF REGIONAL SCHOOL DISTRICT TAXES PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

A-12

GREENWICH TOWNSHIP

CURRENT FUND

SCHEDULE OF LOCAL SCHOOL TAXES PAYABLE

Balance December 31, 2016: Ref.

School Taxes Deferred

School Taxes Payable A

Increased by:

Levy-School Year July 1, 2017

through June 30, 2018

Decreased by:

Payments to Local School District

Balance December 31, 2017:

School Taxes Deferred

School Taxes Payable A

Analysis oflncrease - Deferred School Tax:

Balance December 31, 2017


Net Increase Credited to Operations

A-13

$ 2,402,249.00

2,951,842.02

5,354,091.02

10,982,349 .00

16,336,440.02

10,825,274.54

2,652,249.00

2,858,916.48

$ 5,511,165.48

$ 2,652,249.00

2,402,249.00

$ 250,000.00

A-14

GREENWICH TOWNSHIP FEDERALANDSTATEGRANTFUND

SCHEDULE OF APPROPRIATED RESERVES

Transferred from

Balance 2017 Budget Cancelled Balance Dec. 31, 2016 Appropriations Expended Reserves Dec. 31, 2017

Body Armor Replacement Fund - 2014 $ 685.97 $ 685.97 Body Armor Replacement Fund - 2015 1,341.94 1,237.43 $ 104.51

Body Armor Replacement Fund - 2017 $ 1,221.79 1,221.79

Fire Safety 3,989.00 3,989.00 Gypsy Moth 782.00 $ 782.00 Bike Path Phase II 1,364.00 1,364.00 Emergency Management Support Grant 27,724.00 11,737.03 15,986.97

Drunk Driving Enforcement Fund - 2013 1,821.71 1,821.71 Drunk Driving Enforcement Fund - 2014 1,322.00 1,322.00 South Main Street 19,809.00 19,809.00 Stormwater Regulation 484.00 484.00 WalMart 1,000.00 1,000.00 Highlands Plan Assessment Grant 615.03 615.03 New Jersey Clean Energy Grant 34,149.35 8,071.46 26,077.89 Clean Communities Grant - 2010 264.18 264.18 Clean Communities Grant - 2012 129.71 129.71 Clean Communities Grant - 2013 186.15 I 86.15 Clean Communities Grant- 2015 9,020.98 7,132.28 1,888.70 Clean Communities Grant- 2016 13,563.78 5,146.64 8,417.14

Clean Communities Grant - 2017 15,511.56 15,511.56 Over the Limit- 201 I 2,447.99 2,447.99 Drive Sober or Get Pulled Over 9,291.33 9,291.33 New Jersey Department of Transportation:

Safe Routes to School Grant 102,359.92 102,359.92 Willow Grove 92.25 92.25

Alcohol Education and Rehabilitation Fund 13,184.26 13, 184.26 Recycling Tonnage Grant- 2015 13,741.09 3,132.64 10,608.45 Recycling Tonnage Grant- 2016 8,597.70 8,597.70 Greenwich Street Bike Path 14,957.00 14,957.00 Warren County Legal Services 2,500.00 2,500.00 Safe and Secure Program - Local Share 10,038.40 10,038.40 Municipal Alliance - Matching Funds 1,612.75 1,612.75

$295,462. 74 $ 18,346.10 $ 57,532.49 $ 142,431.92 $ 113,844.43

Ref. A A

Federal Grants $ 31,546.03 State Grants $ 16,733.35 25,986.46 $ 142,431.92 Local Matching Funds 1,612.75

$ 18,346.10 $ 57,532.49 $ 142,431.92

Expended by: Current Fund $ 45,795.46 General Capital Fund 11,737.03

$ 57,532.49

GREENWICH TOWNSHIP FEDERALANDSTATEGRANTFUND

SCHEDULE OF UNAPPROPRIATED RESERVES

Transferred to Balance Cash 2017 Budget

Dec. 31, 2016 Receipts Revenue

Recycling Tonnage Grant $ 9,096.80 Body Armor Replacement Fund $ 1,221.79 1,383.80 $ 1,221.79 Clean Communities Grant 15,511.56 13,178.04 15,511.56

$ 16,733.35 $ 23,658.64 $ 16,733.35

A

A-15

Balance Dec. 31, 2017

$ 9,096.80 1,383.80

13,178.04

$ 23,658.64

A

GREENWICH TOWNSHIP


TRUST FUNDS

B-4 GREENWICH TOWNSHIP

TRUST FUNDS SCHEDULE OF CASH-TREASURER

Ref. Animal Control Fund Other Trust Funds Open Space

Balance December 31, 2016 B $ 1,377.87 $ 636,818.05 $ 1,494,586.22

Increased by Receipts:

Due Current Fund: Interest on Investments $ 10.81 $ 392.13

Dog License Fees 1,747.00 Dog License State Share 264.60 Miscellaneous 35.00 Open Space Trust:

Interest on Investments $ 3,951.66 Miscellaneous 10,349.50 Tax Levy 240,377.47

Reserve for: COAH 7,452.78

Recreation Commisson 67,756.52

Small Cities 323.51 Escrow Deposits 67,353.09

POAA 20.00 Public Defender 2,532.00

2,057.41 145,830.03 254,678.63 3,435.28 782,648.08 1,749,264.85

Decreased by Disbursements: Open Space Trust:

Open Space Expenditures 882,610.95 Expenditures Under R.S. 4:19-15.11 1,301.37 Dog License State Share 222.00 Reserve for:

COAH 17,623.01

Recreation Commisson 60,999.39 Community Day 1,318.69

Fire Inspection Penalties 1,222.00 Public Defender 1,200.00 Escrow Deposits 70,310.81

1,523.37 152,673.90 882,610.95

Balance December 31, 2017 B $ 1,911.91 $ 629,974.18 $ 866,653.90

GREENWICH TOWNSHIP

ANIMAL CONTROL FUND

SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES

Ref.

Balance December 31, 2016 B

Increased by:

Dog License Fees:

Collected in Current Year $ 2,011.60

Miscellaneous 35.00

Decreased by: Expenditures Under R. S. 4: 19-15 .11 1,301.37

Due to State of New Jersey 264.60

Balance December 31, 2017 B

License Fees Collected Amount

Year

2015 $ 1,274.40

2016 2,374.20

Maximum Allowable Reserve $ 3,648.60

B-5

$ 1,363.45

2,046.60

3,410.05

1,565.97

$ 1,844.08

GREENWICH TOWNSHIP

COUNTY OF WARREN

2017



Increased by Receipts: Bond Anticipation Notes Issued

Bond Anticipation Notes Premium

Due Current Fund:

Interest Earned

GREENWICH TOWNSHIP


SCHEDULE OF CASH

Ref.

c

Capital Improvement Fund - Budget Appropriation

Decreased by Disbursements: Improvement Authorizations

Due Current Fund: Interest Earned

Due from Grant Fund - Interfund Advanced


C-2

$ 443,790.58

$ 3,001,375.00

24,282.00

1,356.68

100,000.00

3,127,013.68

3,570,804.26

1,095,032.3 7

1,449.39

11,737.03

1,108,218.79

$ 2,462,585.47

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NE

RA

L C

AP

ITA

L F

UN

D

SC

HE

DU

LE

OF

IM

PR

OV

EM

EN

T A

UT

HO

RIZ

AT

ION

S

Bal

ance

Dec

embe

r 31

, 201

6

Fun

ded

Unf

unde

d

35,1

45.3

0

265.

34

151.

67

2,67

7.50

4, 1

39.3

8

$ 32

4,84

9.28

42,3

79.1

9 $

324,

849.

28

c c

Cap

ital

Impr

ovem

ent

Fun

d

$ 67

,450

.00

$ 67

,450

.00

2017

Aut

hori

zati

ons

$

Def

erre

d C

harg

es

to F

utur

e T

axat

ion

Unf

unde

d

1,28

1,55

0.00

921,

500.

00

$ 2,

203,

050.

00

Ope

n S

pace

Tru

st F

und

Oth

er

Sou

rces

$ 48

,500

.00

$ 48

,500

.00

A

$ 48

,500

.00

Cas

h D

isbu

rsed

Enc

umbr

ance

s

Pai

d o

r

Cha

rged

$ 27

5,02

8.06

1,15

8,72

0.93

$ 1,

433,

748.

99

$ 1,

095,

032.

37

338,

716.

62

$ 1,

433,

748.

99

$ $

C-5

Bal

ance

Dec

embe

r 31

, 201

7

Fun

ded

Unf

unde

d

35,1

45.3

0

265.

34

151.

67

2,67

7.50

4,13

9.38

$ 49

,821

.22

190,

279.

07

48,5

00.0

0 92

1,50

0.00

90,8

79.1

9 $

1,1

61

,60

0.2

9

c c

C-5


Increased by:

GREENWICH TOWNSHIP

GENERAL CAP IT AL FUND

SCHEDULE OF CAPITAL IMPROVEMENT FUND

Ref.

c

Current Fund Budget Appropriation

Decreased by:

Appropriated to Finance Improvement Authorizations


C-6

$ 10,424.00

100,000.00

110,424.00

67,450.00

$ 42,974.00

Ord

. N

o.

2015

-02

2015

-03

2017

-04

2017

-05

GR

EE

NW

ICH

TO

WN

SH

IP

GE

NE

RA

L C

AP

ITA

L F

UN

D

SC

HE

DU

LE

OF

BO

ND

AN

TIC

IPA

TIO

N N

OT

ES

PA

Y A

BL

E

FO

R T

HE

YE

AR

EN

DE

D D

EC

EM

BE

R 3

1, 2

017

Dat

e o

f Is

sue

of

Ori

gina

l In

tere

st

Impr

ovem

ent D

escr

ipti

on

Not

e Is

sue

Mat

urit

y R

ate

Roa

d Im

prov

emen

ts

1011

2117

l 0

/12/

17

10/1

1/18

2.

25%

V

ario

us I

mpr

ovem

ents

10

/12/

17

10/1

2/17

10

/11/

18

2.25

%

Var

ious

Im

prov

emen

ts

1011

2117

10

/12/

17

10/1

1/18

2.

25%

O

pen

Spa

ce -

Tho

mas

Ste

war

t Par

k 10

/12/

17

10/1

2/17

10

/11/

18

2.25

%

Ref

.

C-7

Bal

ance

Is

sued

D

ec.

31,

2017

$ 38

,000

.00

$ 38

,000

.00

760,

325.

00

760,

325.

00

1,28

1,55

0.00

1,

281,

550.

00

921,

500.

00

921,

500.

00

$ 3,

001,

375.

00

$ 3,

001,

375.

00

c

C-7

C-8

GR

EE

NW

ICH

TO

WN

SH

IP

GE

NE

RA

L C

AP

ITA

L F

UN

D

SC

HE

DU

LE

OF

SE

RIA

L B

ON

DS

PA

Y A

BL

E

Mat

urit

ies

of B

onds

D

ate

of

Ori

gina

l O

utst

andi

ng D

ec.

31, 2

017

Inte

rest

B

alan

ce

Bal

ance

Pur

pose

Is

sue

Issu

e D

ate

Am

ount

R

ate

Dec

. 31

, 201

6 M

atur

ed

Dec

. 31

, 201

7

Gen

eral

Im

prov

emen

t Bon

ds

07/0

9/11

$

865,

000.

00

7/15

/201

8 $

70,0

00.0

0 2.

500%

$

615,

000.

00

$ 65

,000

.00

$ 55

0,00

0.00

7/15

/201

9 80

,000

.00

3.00

0%

7/15

/202

0 80

,000

.00

3.00

0%

7115

/202

1 80

,000

.00

3.12

5%

7/15

/202

7 80

,000

.00

4.00

0%

7/15

/202

8 80

,000

.00

4.00

0%

7/15

/202

9 80

,000

.00

4.00

0%

Gen

eral

Im

prov

emen

t Ter

m B

onds

Sin

king

Fun

ds

07/0

9/11

40

0,00

0.00

7/

15/2

022

80,0

00.0

0 4.

000%

40

0,00

0.00

40

0,00

0.00

7/15

/202

3 80

,000

.00

4.00

0%

7/15

/202

4 80

,000

.00

4.00

0%

7/15

/202

5 80

,000

.00

4.00

0%

7/15

/202

6 80

,000

.00

4.00

0%

$ 1,

015,

000.

00

$ 65

,000

.00

$ 95

0,00

0.00

C-8

Ord.

No.

2015-02

2015-03

2017-04

2017-05

GREENWICH TOWNSHIP GENERAL CAPITAL FUND

SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED FOR THE YEAR ENDED DECEMBER 31, 2017

Balance 2017

Purpose Dec. 31, 2016 Authorizations

Road Improvements $ 38,000.00

Various Improvements 760,325.00

Various Improvements $ 1,281,550.00

Open Space - Thomas Stewart Park 921,500.00

$ 798,325.00 $ 2,203,050.00

C-9

Bond

Anticipation

Notes

Issued

$ 38,000.00

760,325.00 1,281,550.00

921,500.00

$ 3,001,375.00

GREENWICH TOWNSHIP


WATER UTILITY FUND

NOT APPLICABLE

GREENWICH TOWNSHIP

COUNTY OF WARREN

2017

SEWER UTILITY FUND

Bal

ance

Dec

embe

r 31

, 201

6

Incr

ease

d by

Rec

eipt

s:

Sew

er R

ents

Pre

paid

Sew

er R

ents

Res

erve

for

Sew

er B

uyba

cks

Due

Fro

m S

ewer

Uti

lity

Ope

rati

ng F

und:

Cap

ital

Im

prov

emen

t F

und

Mis

cell

aneo

us R

even

ue N

ot A

ntic

ipat

ed:

Inte

rest

on

Inv

estm

ents

Mis

cell

aneo

us

Inte

rest

on

Sew

er R

ents

Dec

reas

ed b

y D

isbu

rsem

ents

:

2017

Bud

get A

ppro

pria

tion

s

2016

App

ropr

iati

on R

eser

ves

Bal

ance

Dec

embe

r 31

, 201

7

GR

EE

NW

ICH

TO

WN

SH

IP

SE

WE

R U

TIL

ITY

FU

ND

SC

HE

DU

LE

OF

CA

SH

-T

RE

AS

UR

ER

Ope

rati

ng

E

$ 1,

248,

660.

07

$ 57

2,72

3.87

21,3

78.9

9

19,7

40.8

7

1,15

6.25

6,86

5.41

5,

322.

99

627,

188.

38

1,87

5,84

8.45

613,

856.

80

8,26

3.69

622,

120.

49

E

$ 1,

253,

727.

96

E-4

Cap

ital

$ 41

1,09

3.86

$ 10

0,00

0.00

1,70

8.26

101,

708.

26

512,

802.

12

$ 51

2,80

2.12

E-4

GREENWICH TOWNSHIP SEWER UTILITY OPERATING FUND SCHEDULE OF CASH - COLLECTOR


NOT APPLICABLE

E-4A

Capital Improvement Fund

Due Sewer Utility Operating Fund

Reserve for Preliminary Costs


ANALYSIS OF SEWER CAPITAL CASH

Receipts Balance Budget

Dec. 31, 2016 Appropriation

$ 309,592.62 $ 100,000.00 94,455.74 $ 7,045.50

$ 411,093.86 $ 100,000.00 $

Ref. E

E-5

Interest Balance

Earned Dec. 31, 2017

$ 409,592.62 1,708.26 96,164.00

7,045.50

1,708.26 $ 512,802.12

E

GREENWICH TOWNSHIP

SEWER UTILITY OPERATING FUND SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE

Ref.

Balance December 31, 2016 E

Increased by:

Sewer Rents Levied $ 607,188.42

Interest on Delinquent Sewer Rents 5,322.99

Decreased by Collections:

Sewer Rents 572,723.87

Prepaid Rents Applied 7,070.81

Interest on Delinquent Sewer Rents 5,322.99

Balance December 31, 2017 E

E-6

$ 297,421.04

612,511.41 909,932.45

585,117.67

$ 324,814.78


SCHEDULE OF FIXED CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-7


SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-8

GREENWICH TOWNSHIP SEWER UTILITY OPERA TING FUND

SCHEDULE OF 2016 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2017

Balance Balance After Dec. 31, 2016 Transfers

Operating:

Other Expenses $ 50,679.74 $ 50,679.74 Contractual - Town of Phillipsburg 37,657.17 37,657.17

Statutory Expenditures:

Contribution to: Social Security System (O.A.S.I.) 2,800.00 2,800.00 Unemployment Compensation Insurance 700.00 700.00

$

$ 91,836.91 $ 91,836.91 $

Ref. Analysis of Balance at December 31, 2016:

Unencumbered E $ 91,464.08 Encumbered E 372.83

$ 91,836.91

E-9

Paid or Balance Charged Lapsed

6,528.19 $ 44,151.55

1,735.50 35,921.67

2,800.00 700.00

8,263.69 $ 83,573.22


SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-10


Increased by:

2017 Budget Appropriation


GREENWICH TOWNSHIP

SEWER UTILITY CAPITAL FUND SCHEDULE OF CAPITAL IMPROVEMENT FUND

E-11

E $ 309,592.62

100,000.00

E $ 409,592.62


SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-12


SCHEDULE OF RESERVE FOR AMORTIZATION FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-13


SCHEDULE OF BOND ANTICIPATION NOTES PAY ABLE FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-14

GREENWICH TOWNSHIP

SEWER UTILITY CAPITAL FUND

SCHEDULE OF SERIAL BONDS PAY ABLE


NOT APPLICABLE

E-15

GREENWICH TOWNSHIP

SEWER UTILITY CAPITAL FUND

SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED FOR THE YEAR ENDED DECEMBER 31, 2017

NOT APPLICABLE

E-16


2017 PUBLIC ASSISTANCE FUND

NOT APPLICABLE

GREENWICH TOWNSHIP


BOND AND INTEREST FUND

NOT APPLICABLE

GREENWICH TOWNSHIP

PART II

SINGLE AUDIT


Fed

eral

Fun

ding

Dep

artm

ent

U.S

. D

epar

tmen

t of H

omel

and

Sec

urit

y

(Pas

sed

thro

ugh

NJ

Dep

t.

of L

aw &

Pub

lic

Saf

ety)

Fed

eral

Pro

gram

Dis

aste

r G

rant

s

Pub

lic

Ass

ista

nce

F.E

.M.A

.

Tot

al U

.S.

Dep

artm

ent o

f Hom

elan

d S

ecur

ity

U.S

. D

epar

tmen

t of T

rans

port

atio

n:

(Pas

sed

thro

ugh

NJ

Dep

t. o

f Tra

nspo

rtai

on)

Tra

nspo

rtat

ion

Tru

st

Fun

d A

utho

rity

Act

-S

outh

Mai

n S

tree

t

Tot

al U

.S.

Dep

artm

ent o

f Tra

nspo

rtat

ion

TO

TA

L F

ED

ER

AL

A W

AR

DS

GR

EE

NW

ICH

TO

WN

SH

IP

SC

HE

DU

LE

OF

EX

PE

ND

ITU

RE

S O

F F

ED

ER

AL

AW

AR

DS

FO

R T

HE

YE

AR

EN

DE

D D

EC

EM

BE

R 3

1, 2

017

Pas

s T

hrou

gh

CF

DA

#

Ent

ity

ID

Gra

nt P

erio

d F

rom

T

o A

war

d A

mou

nt

Am

ount

of

Exp

endi

ture

s

97.0

36

NIA

01

/01/

14

12/3

1/18

$

27,7

24.0

0 $

11,7

37.0

3

20.2

05

082-

2078

-49

5-00

4 01

/01/

14

12/3

1/17

11,7

37.0

3

19,8

09.0

0 19

,809

.00

19,8

09.0

0

$ 31

,546

.03

SE

E N

OT

ES

TO

SC

HE

DU

LE

S O

F E

XP

EN

DIT

UR

ES

OF

FE

DE

RA

L A

ND

ST

AT

E A

WA

RD

S

Cum

ulat

ive

Exp

endi

ture

s

$ 11

,737

.03

11,7

37.0

3

19,8

09.0

0

19,8

09.0

0

$ 31

,546

.03

Sch

edul

e A

Am

ount

Pro

vide

d to

S

ubre

cipi

ents

$ -0

-

1

Sch

edul

e B

GR

EE

NW

ICH

TO

WN

SH

IP

SC

HE

DU

LE

OF

EX

PE

ND

ITU

RE

S O

F ST

A T

E A

WA

RD

S

FO

R T

HE

YE

AR

EN

DE

D D

EC

EM

BE

R 3

1, 2

017

New

Jer

sey

Nam

e o

f S

tate

Gra

nt

Gra

nt P

erio

d G

rant

A

mou

nt

Am

ount

of

Cum

ulat

ive

Age

ncy

or D

epar

tmen

t P

rogr

am

Aw

ard

Num

ber

Fro

m

To

Aw

ard

Rec

eive

d E

xpen

ditu

res

Exp

endi

ture

s

Dep

artm

ent o

f E

nvir

onm

enta

l

Pro

tect

ion

Cle

an C

omm

unit

ies

Act

76

5-04

2-49

00-

01/0

1/10

12

/311

17

$ 2,

037.

29

$ 26

4.18

$

2,03

7.29

004-

V42

Y-6

020

01/0

1112

12

/31/

17

10,3

56.8

3 12

9.71

10

,356

.83

01/0

1/13

12

/31/

17

10,3

26.2

8 18

6.15

10

,326

.28

01/0

1/14

12

/31/

18

11,1

69.5

6 7,

132.

28

9,28

0.86

01/0

1/15

12

/31/

18

13,5

63.7

8 5,

146.

64

5,14

6.64

01/0

1/17

12

/31/

18

13, 1

78.0

4 $

13, 1

78.0

4

Sub

tota

l -

Cle

an C

omm

unit

ies

Gra

nt

13,1

78.0

4 12

,858

.96

37,1

47.9

0

Cle

an E

nerg

y A

udit

76

5-04

2-49

00

044-

1945

2 01

/01/

13

12/3

1/18

34

,149

.35

8,07

1.46

8,

071.

46

Sub

tota

l -

Cle

an E

nerg

y A

udit

8,

071.

46

8,07

1.46

Rec

ycli

ng T

onna

ge G

rant

75

2-04

2-49

00

01/0

1/15

12

/31/

18

24,9

88.1

8 3,

132.

64

14,3

79.7

3

001-

6020

01

/01/

17

12/3

1/18

9,

096.

80

9,09

6.80

Sub

tota

l -

Rec

ycli

ng T

onna

ge G

rant

9,

096.

80

3,13

2.64

14

,379

.73

Sub

tota

l -

Dep

artm

ent o

f Env

iron

men

tal

Pro

tect

ion

22,2

74.8

4 24

,063

.06

51,5

27.6

3

Dep

artm

ent o

f Law

and

Pub

lic

Saf

ety

Bod

y A

rmor

Rep

lace

men

t 71

8-06

6-10

20

01/0

1/14

12

/31/

17

1,64

1.97

68

5.97

1,

641.

97

Fun

d 00

1-Y

CJS

-612

0 01

/01/

15

12/3

1/18

1,

341.

94

1,23

7.43

1,

237.

43

01/0

1/17

12

/31/

18

1,38

3.80

1,

383.

80

1,38

3.80

1,

923.

40

2,87

9.40

Dru

nk D

rivi

ng E

nfor

cem

ent F

und

100-

066-

1110

-

260-

YY

YY

01

/01/

13

12/3

1/17

6,

554.

71

4,73

3.00

4,73

3.00

Sub

tota

l -

Dep

artm

ent

of L

aw a

nd P

ubli

c S

afet

y 1,

383.

80

1,92

3.40

5,

758.

80

TO

TA

L S

TA

TE

AW

AR

DS

$

23,6

58.6

4 $

25,9

86.4

6 $

57,2

86.4

3

SE

E A

CC

OM

PA

NY

ING

NO

TE

S T

O S

CH

ED

UL

ES

OF

EX

PE

ND

ITU

RE

S O

F F

ED

ER

AL

AN

D S

TA

TE

AW

AR

DS

2

Note 1.

Note 2.

Note 3.

GREENWICH TOWNSHIP NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AW ARDS


BASIS OF PRESENTATION

3

The accompanying schedules of expenditures of federal and state awards (the "Schedules") includes the federal and state grant activity of Greenwich Township under programs of the federal and state governments for the year ended December 31, 2017. The information in these schedules is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid Because the schedules present only a selected portion of the operations of the Township, they are not intended to and do not present the financial position, changes in fund balance or cash flows of the Township.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are presented where available. The Township has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.

N 1 s 1 v a c c 1 A LLP Certified Public Accountants & Advisors

Report on Internal Control Over Financial Reporting

4

Mount Arlington Corporate Center 200 Valley Road, Suite 300

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

Lawrence Business Center 11 Lawrence Road Newton, NJ 07860

973-383-6699 I 973-383-6555

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

The Honorable Mayor and Members of the Township Committee Greenwich Township Stewartsville, New Jersey

Independent Auditors' Report

We have audited, in accordance with auditing standards generally accepted in the United States of America, audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey ("the Division"), and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements - regulatory basis - of the various funds of Greenwich Township, in Warren County (the "Township") as of and for the years ended December 31, 2017 and 2016, and the related notes to the financial statements and have issued our report thereon dated March 26, 2018. These financial statements have been prepared in accordance with accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting, and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America. That report contained a qualified opinion on the financial statements as the amount that should be recorded in the general fixed assets account group as of December 31, 2016 could not be determined.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Township's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Township's internal control. Accordingly, we do not express an opinion on the effectiveness of the Township's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Township's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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The Honorable Mayor and Members of the Township Committee Greenwich Township Page2

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Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weakness or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Responses as Findings 2017-01, which we consider to be a significant deficiency.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Township's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The Township's Response to the Finding

The Township's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. The Township's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Township's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Township's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Mount Arlington, New Jersey March 26, 2018

Registered Municipal Accountant No. 560

GREENWICH TOWNSHIP SCHEDULE OF FINDINGS AND RESPONSES


Summary of Auditors' Results:

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The Independent Auditors' Report expresses a qualified opm10n on the Township's financial statements, prepared in accordance with accounting practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, as the amount that should be recorded in the general fixed assets account group could not be determined.

A significant deficiency disclosed during the audit of the financial statements as of December 31, 2016 is reported in the Independent Auditors ' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. No material weaknesses are reported.

No instances of noncompliance material to the financial statements of the Township which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit.

The Township was not subject to the single audit provisions of the Uniform Guidance and New Jersey's OMB Circular 15-08 for the year ended December 31, 2017 as both state and federal grant expenditures were less than the single audit thresholds of $750,000 identified in the Uniform Guidance and New Jersey's OMB Circular 15-08.

Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally Accepted Government Auditing Standards:

The audit disclosed the following significant deficiency required to be reported under Generally Accepted Government Auditing Standards:

Finding 2017-01

Segregation of Duties

Criteria

Concentration of duties and responsibilities m a limited number of individuals 1s not desirable from a control point of view.

Condition

The Township does not maintain an adequate segregation of duties with respect to the recording and treasury functions. The various departments and offices of the Township are responsible for the issuance of permits and licenses; collection of taxes, and permit and license fees; and recording of these collections. Also, the reconciliation of the bank accounts, the disbursement of funds, and the preparation of the general ledger are all performed by the Chief Financial Officer.

Cause

This is due, in part, to the limited number of personnel of the Township and the decentralized nature of governmental collection procedures.

Effect or Potential Effect

Segregation of duties refers to separating those functions that place too much control over a transaction or class of transactions that would enable a person to perpetuate errors and prevent detection within a reasonable period of time.

GREENWICH TOWNSHIP SCHEDULE OF FINDINGS AND RESPONSES


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Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally Accepted Government Auditing Standards: (Cont'd)

Finding 2017-01 (Cont'd)

Effect or Potential Effect

Segregation of duties refers to separating those functions that place too much control over a transaction or class of transactions that would enable a person to perpetuate errors and prevent detection within a reasonable period of time.

Management's Response

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

Findings and Questioned Costs for Federal Awards:

Not applicable since federal expenditures were below the Single Audit threshold.

Findings and Questioned Costs for State Awards:

Not applicable since state expenditures were below the Single Audit threshold.

GREENWICH TOWNSHIP SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


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The Township's prior year audit finding 2016-01 regarding segregation of duties was not resolved due to budgetary constraints and is included as finding 2017-01 in the current year audit. The Township's prior year audit finding 2016-02 regarding fixed asset reporting has been resolved and is not included in the current year audit.

GREENWICH TOWNSHIP

PART III

COMMENTS AND RECOMMENDATIONS


GREENWICH TOWNSHIP COMMENTS AND RECOMMENDATIONS

Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:l 1-4

N.J.S. 40A:l 1-3 states:

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a. " When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a contract year the total sum of $17 ,500, the contract may be awarded by a purchasing agent when so authorized by ordinance or resolution, as appropriate to the contracting unit, of the governing body of the contracting unit without public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. If the purchasing agent is qualified pursuant to subsection b. of section 9 of P .L. 1971, c.198 (C.40A:ll-9), the governing body of the contracting unit may establish that the bid threshold may be up to $25,000. Such authorization may be granted for each contract or by a general delegation of the power to negotiate and award such contracts pursuant to this section.

b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, except that contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of section 5 of P.L. 1971, c.198 (C.40A: 11-5) may be awarded for a period not exceeding 12 consecutive months. The Division of Local Government Services shall adopt and promulgate rules and regulations concerning the methods of accounting for all contracts that do not coincide with the contracting unit's fiscal year.

c. The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of every fifth year beginning in the fifth year after the year in which P .L.1999 c.440 takes effect, adjust the threshold amount and the higher threshold amount which the governing body is permitted to establish, as set forth in subsection a. of this section, or the threshold amount resulting from any adjustment under this subsection, in direct proportion to the rise or fall of the index rate as that term is defined in section 2 of P .L.1971, c.198 (C.40Al 1-2), and shall round the adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made."

N.J.S. 40A: 11-4 states: "Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded only by resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. The governing body of a contracting unit may, by resolution approved by a majority of the governing body and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body finds that it has had prior negative experience with the bidder."

Effective July 1, 2015 and thereafter the bid threshold in accordance with N.J.S.A. 40A: 11-3 is $17 ,500, and with a qualified purchasing agent the threshold may be up to $40,000.

The governing body of Greenwich Township has the responsibility of determining whether the expenditures in any category will exceed the bid threshold within the fiscal year and where question arises as to whether any contract or agreement might result in violation of the statute, the Township Attorney's opinion should be sought before a commitment is made.


(Continued)

Contracts and Agreements Required to be Advertised for N.J.S.A. 40A:l 1-4 (Cont'd)

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The minutes indicated that bids were requested by public advertising per N.J.S. 40A:l 1-4. The minutes also indicated that resolutions were adopted authorizing the awarding of contracts or agreements for "Professional Services," perN.J.S. 40A:ll-5.

Inasmuch as the system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut violations existed. No exceptions were noted.

Collection oflnterest on Delinquent Taxes, Sewer Rents and Assessments

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

On January 3, 2017, the governing body adopted the following resolution authorizing interest to be charged on delinquent taxes and sewer charges:

BE IT RESOLVED by the Mayor and Committee of Greenwich Township, Warren County, New Jersey, that the rate of interest charges on delinquent taxes and sewer charges in this Township shall be as follows:

On all delinquents to and including December 31, 2017, at the rate or rates heretofore governing, and on all delinquents on and after January 1, 201 7 at the rate of 8% per annum for and upon the first $1,500 of the delinquency, the rate of 18% per annum for and upon any amount of the delinquency in excess of $1,500, and the rate of 6% per annum for and upon any amount in excess of $10,000 at year end; and that a grace period of 10 days will be allowed on taxes and sewer charges due February 1, May 1, August 1, and November 1. If taxes are not paid by the 10th, interest shall be charged from the due date.

BE IT RESOLVED, that the collector of the Township be and hereby directed to collect interest on all taxes and sewer rents accordingly.

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

Delinquent Taxes and Tax Title Liens

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

Year

2017 2016 2015

Tax Title Liens

0

6 9


(Continued)

Verification of Delinquent Taxes and Other Charges

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

Type

Payment of 2017 and 2018 Taxes

Delinquent Taxes

Payment of 2017 Sewer Rents

Delinquent Sewer Rents

Number Mailed

20

10 10 10

Verification notices were mailed to confirm balances and payments as of December 31, 2017. The items that were returned were checked and in agreement with the Township's records. For receivable items not returned, alternative procedures were performed.

New Jersey Administrative Code Accounting Requirements

The Division of Local Government Services has established three (3) accounting requirements which are prescribed in the New Jersey Administrative Code. They are as follows:

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

The Township currently complies with these accounting requirements.

Federal and State Grants Fund

There are several grants receivable and unexpended appropriated grant reserve balances in the Federal and State Grant Fund that have not been fully collected or fully expended. Also, there are some grants that now appear to be complete, and the remaining balances should be canceled. It is recommended that the Township investigate all grants receivable and unexpended appropriated grant reserve balances, and cancel any balances determined to no longer be collectable or cancel reserve balances as deemed necessary.

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COMMENTS AND RECOMMENDATIONS (Continued)

Municipal Court

The report of the Municipal Court has been forwarded to the Division of Local Government Services and the Township's Magistrate under separate cover. Reflected below is a summary of receipts and disbursements for the year ended December 31, 2017.

RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017

BALANCE CASH CASH BALANCE

AGENCY 12/31/2016 RECEIVED DISBURSED 12/31/2017

State of New Jersey $ 26,033.38 $ 533,108.51 $ 529,303.53 $ 29,838.36

County of Warren 1,984.00 38,975.75 38,032.75 2,927.00

Municipality - Greenwich 4,260.42 81,589.29 81,136.18 4,713.53

Municipality - Pohatcong 3,313.54 61,497.53 60,097.55 4,713.52

Parking Offense

Adjudication Act 31.00 29.00 2.00

Weights and Measures 50.00 7,000.00 6,600.00 450.00 Conditional Discharge 70.00 410.00 355.00 125.00

Restitution 75.00 554.98 529.98 100.00

Public Defender 200.00 2,742.00 2,942.00

Bail Account 41,383.00 35,083.00 6,300.00

TOTAL $ 35,986.34 $ 767,292.06 $ 754,108.99 $ 49,169.41

Marriage License Fees

During the course of our audit, it was discovered that amounts being received for marriage licenses which were due to the State of New Jersey were not being sent to the State. It is recommended that marriage license fees due to the State or New Jersey be paid to the State on at least a quarterly basis.


The Township will remit all marriage license fees collected which are due to the State of New Jersey on at least a quarterly basis in the future.

Payroll Agency Account

During the course of our audit, it was found that an analysis of the balance of the Payroll Agency Account is not being maintained. Failure to maintain an analysis of the balance of the Payroll Agency Account makes it impossible to determine that the balance of the account is correct, and that no amounts are due to or from the Current Fund. It is recommended that an analysis of balance for the Payroll Agency Account be prepared on a monthly basis.


The Township will prepare an analysis of the balance of the Payroll Agency Account on a monthly basis.

Clerk Records


(Continued)

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It was found that although the Clerk did not maintain a cash receipts ledger throughout the year, there was a ledger that was prepared at the end of the year and made available for the audit which only appeared to contain partial information for the actual receipts that the Clerk had for the year. It is recommended that the Clerk maintain a ledger throughout the year and submit the ledger to the Chief Financial Officer on at least monthly basis, and reconcile the activity recorded.


The Clerk's office will prepare and maintain a receipt ledger throughout the year and reconcile turnovers to the records of the CFO on at least a monthly basis.

Status of Prior Year Recommendations

The recommendations from the 2016 audit concerning old grants receivable and appropriated grant reserve balances, property tax sale procedures, a fixed asset accounting and recording system being implemented, and timely deposit of tax receipts were resolved in the current year and are not included in the current year's audit report. The recommendations from the 2016 audit concerning an adequate segregation of duties, marriage license fees being remitted to the State of New Jersey, and the preparation of an analysis of the Payroll Agency account balance were not resolved and are included in the current year's audit report.

It is recommended that:

GREENWICH TOWNSHIP SUMMARY OF RECOMMENDATIONS

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

2. Marriage license fees due to the State or New Jersey be remitted to the State on at least a quarterly basis.

3. An analysis of balance for the Payroll Agency Account be prepared on a monthly basis.

4. The Clerk maintain a ledger throughout the year and submit the ledger to the Chief Financial Officer on at least a monthly basis, and reconcile the activity recorded.

Documents

GREENWICH TOWNSHIP COUNTY OF WARREN REPORT OF …