TOWNSHIP OFEDISON COUNTY OFMIDDLESEX NEW JERSEY...ofNew Jersey,that demonstrate compliance with the modified accrual basis, with certainexceptions, andthe budget laws of New Jersey,

TOWNSHIP OF EDISONCOUNTY OF MIDDLESEX

NEW JERSEY

FINANCIAL STATEMENTSAND

SUPPLEMENTARY DATAAND INFORMATION

FOR THE YEAR ENDEDDECEMBER 31,2011

WITHREPORT OF INDEPENDENT AUDITORS

HODULIK & MORRISON, P.A.CERTIFIED PUBLIC ACCOUNTANTS

REGISTERED MUNICIPAL ACCOUNT ANTSHIGHLAND PARK, N.J.

PART I

TOWNSHIP OF EDISONMIDDLESEX COUNTY, NEW JERSEY

TABLE OF CONTENTS

PAGE(S)

1

Independent Auditor's Report 2-3

FINANCIAL STATEMENTS 4

AA- 1

A-2A-3BB- 1CC- 1

DD- 1

D-2D-3D-4EE- 1

E- 2E- 3E- 4FG

Current Fund - Balance Sheet - Regulatory Basis - December 31, 2011Current Fund - Statement of Operations and Change in

Fund Balance - Regulatory BasisCurrent Fund - Statement of Revenues - Regulatory BasisCurrent Fund - Statement of Expenditures - Regulatory BasisTrust Fund - Balance Sheet - Regulatory Basis - December 31, 2011Assessment Trust Fund - Statement of Fund Balance - Regulatory BasisGeneral Capital Fund - Balance Sheet - Regulatory Basis - December 31, 2011General Capital Fund - Statement of Change in Fund Balance -

Regulatory BasisWater Utility Fund - Balance Sheet - Regulatory Basis - December 31, 2011Water Utility Operating Fund - Statement of Operations and

Changes in Fund Balance - Regulatory BasisWater Utility Capital Fund - Statement of Fund Balance - Regulatory BasisWater Utility Operating Fund - Statement of Revenues - Regulatory BasisWater Utility Operating Fund - Statement of Expenditures - Regulatory BasisSewer Utility Fund - Balance Sheet - Regulatory Basis - December 31, 2011Sewer Utility Operating Fund - Statement of Operations and

Change in Fund Balance - Regulatory BasisSewer Utility Capital Fund - Statement of Change in Fund BalanceSewer Utility Operating Fund - Statement of Revenues - Regulatory BasisSewer Utility Operating Fund - Statement of Expenditures - Regulatory BasisPublic Assistance - Balance Sheet - Regulatory Basis - December 31, 2011Statement of Governmental Fixed Assets

5

6-78 - 1011 - 1920 - 212223

2425

2626272829

303132333435

36 - 69NOTES TO FINANCIAL STATEMENTS

70PART II - SUPPLEMENTARY SCHEDULES

SINGLE AUDIT SECTION 71

Report on Internal Control Over Financial Reporting and on Compliance and OtherMatters Based on an Audit of Financial Statements Performedin Accordance With Government Auditing Standards

Report on Compliance With Requirements Applicable to Each MajorProgram and Internal Control Over Compliance in AccordanceWith OMB Circular A-l33 and New Jersey OMB Circular 04-04

72 -73

74 -75


TABLE OF CONTENTS

SCHEDULE OF FEDERAL AND STATE EXPENDITURE AWARDS

PAGE(S)

76

Sch.A Schedule of Expenditures of Federal Awards 77

Notes to the Schedules of Expenditures of Federal Awards andState Financial Assistance

Sch. CSch.D

78

Schedule of Findings and Questioned CostsSummary Schedule of Prior Findings

79 - 8283

Current Fund

A-4A-5A-6

A-7A-8A-9A-lOA-IIA-12A-13A-14A-ISA-16A-17A-18A-19A-20A-21A-22A-23A-24A-25A-26A-27A-28

84

Schedule of Current Fund Cash and InvestmentsSchedule of Change FundsSchedule of Due from State of New Jersey - Senior Citizens

and Veterans Deductions per Ch. 73, P.L. 1976Schedule of Taxes Receivable and Analysis of Property Tax LevySchedule of Tax Title LiensSchedule of Property Acquired for Taxes at Assessed ValuationSchedule of Revenue Accounts ReceivableSchedule of Prepaid TaxesSchedule of Interfunds ReceivableSchedule of Interfunds PayableSchedule of Changes in Various ReservesSchedule of SFY 2010 Appropriation ReservesSchedule of Tax OverpaymentsSchedule of Reserve for Tax AppealsSchedule of Reserve for EncumbrancesSchedule of Reserve for Special Garbage DistrictSchedule of Accounts PayableSchedule of Due from Edison Sheltered WorkshopSchedule of Taxes PayableSchedule of Deferred ChargesSchedule of State and Federal Grants ReceivableSchedule of Due from Current Fund - State and Federal Grants FundSchedule of Reserve for State and Federal Grants - AppropriatedSchedule of Reserve for State and Federal Grants - UnappropriatedSchedule of Unallocated Receipts - State and Federal Grants Fund

8586

86878888

89 - 9091929394

95 - 100101101102102103103104105

106 - 107108

109 - 110111111

Trust Fund

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

112

Schedule of Trust Cash and Investments - TreasurerSchedule of Trust Cash - CollectorAnalysis of Assessment Trust Cash and InvestmentsSchedule of Assessment Lien Interest and CostsSchedule of Assessment LiensSchedule of Due from Dog Registrar - Animal Control FundSchedule of Accounts ReceivableSchedule of Reserve for Open Space

113-114115115116116117117118


TABLE OF CONTENTS

Trust Fuud (Cout'd.)

B-10

B-llB-12B-13B-14B-15B-16B-17B-18

Schedule of Reserve for Assessments, Liens and Interest and CostsAssessment Trust Fund

Schedule of Due to State of New Jersey - Animal Control FundSchedule of Reserve for Encumbrances - Animal Control FundSchedule of Reserve for Animal Control Expenditures - Animal Control FundSchedule of Other Escrow Funds - Trust-Other FundSchedule of Other Reserves - Trust-Other FundSchedule of Changes in Various ReservesSchedule of Interfunds ReceivableSchedule oflnterfunds Payable

Geueral Capital Fund

C-2C-3C-4C-5C-6C-7C-8C-9C-I0C-l1C-12C-13C-14C-15C-16C-17C-18

Schedule of General Capital Cash and Investments - TreasurerAnalysis of General Capital Cash and InvestmentsSchedule of Accounts Receivable - Edison Free Public LibrarySchedule of Interfunds PayableSchedule of Deferred Charges to Future Taxation - FundedSchedule of Deferred Charges to Future Taxation - UnfundedSchedule of Improvement AuthorizationsSchedule of Bond Anticipation NotesSchedule of Capital Improvement FundSchedule of Reserve for Payment of Future Debt Service CostsSchedule of Serial Bonds - General Capital FundSchedule of Serial Bonds - Type I School DistrictSchedule of Green Trust Program Loans PayableSchedule of Reserve for Grants ReceivableSchedule of Due from Various Grantor AgenciesSchedule of InfrastructureSchedule of Bonds and Notes Authorized but not Issued

Water Utility Fund

D-5D-6D-7

D-8

D-9D-10

D-llD-12D-13D-14

Schedule of Water Utility Cash and Investments - TreasurerAnalysis of Water Utility Capital Cash and InvestmentsSchedule of Reserve for Amortization - Water

Utility Operating FundSchedule of Due to/from Water Utility Capital Fund - Water Utility

Capital FundSchedule of Due to Current Fund - Water Utility Operating FundSchedule of Due to Water Utility Capital Fund - Water

Utility Operating FundSchedule of Fixed Capital - Water Utility Capital FundSchedule of Deferred Reserve for Amortization - Water Utility Capital FundSchedule of Bond Anticipation NotesSchedule of Accrued Interest on Bonds and Notes - Sewer Utility Operating Fund

PAGE(S)

118119119120

121 - 124125126127128

129

130131132132132

133 - 134135136137137138139139140140141

142 - 143

144

145145

146

146147

147148149149150


TABLE OF CONTENTS

Water Utility Fund (Cont'd.)PAGE(S)

D-15D-17

Schedule of Deferred ChargesSchedule of Bonds and Notes Authorized but Not Issued

151151

Sewer Utility Fund

E- 5E- 6E-7E-8E-9E-10E-11E-12E-13

E-14E-15E-16E-17E-18E-19E-20E-21E-22E-23E-24E-25E-26

152

Schedule of Sewer Utility Cash and Investments - TreasurerSchedule of Sewer Utility Cash - CollectorSchedule of Sewer Rents ReceivableSchedule of Sewer Rent LiensSchedule of Interfunds Receivable/PayableSchedule of Serial Bonds - Sewer Utility Capital FundSchedule of Fixed CapitalSchedule of Due from/to Sewer Utility Operating FundSchedule of Fixed Capital Authorized and Uncompleted - Sewer

Utility Capital FundSchedule of Reserve for EncumbrancesSchedule of Reserve for MCIA Lease Purchase PayableSchedule of Sewer Rent OverpaymentsSchedule of Reserve for Sewer Lien ForeclosuresSchedule of Accounts PayableSchedule of SFY 2010 Appropriation Reserves - Sewer Utility Operating FundSchedule of Accrued Interest on Bonds and NotesSchedule of Improvement Authorizations -Sewer Utility Capital FundSchedule of Capital Improvement FundSchedule of Reserve for AmortizationSchedule of Deferred Reserve for AmortizationSchedule of Bonds Anticipation NotesSchedule of Bonds and Notes Authorized but not Issued

153154155155156157158158

159160161161162162163164165166166167168169

Public Assistance Fund 170

F- 1F- 2F- 3F- 4

Schedule of Public Assistance Cash and Investments - TreasurerPublic Assistance Fund - Schedule of RevenuesPublic Assistance Fund - Schedule of ExpendituresSchedule of Reserve for Public Assistance

171172172172

PART III - SUPPLEMENTARY DATA 173

Length of Service Award Program (LOSAP) - (Unaudited) 174

Independent Accountant's Review Report 175

Exh. A Schedule of Length of Service Award Program (LOSAP) - (Unaudited)-Statement of Assets, Liabilities and Net Assets

Exh. B Statement of Revenues, Expenses and Other Changes in Net Assets176177

Notes to Financials Statements - Length of Service Award Program (LOSAP) 178 - 179


TABLE OF CONTENTS

PAGE(S)

Other Supplementary Data 180

Combined Balance Sheet - All Funds for the Year Ending December 31,2011Comparative Statement of Operations - Change in Fund Balance - Current FundComparative Statement of Operations - Change in Fund Balance - Sewer Utility FundComparative Schedule of Tax Rate InformationComparison of Tax Levies and Collection CurrentlyDelinquent Taxes and Tax Title LiensProperty Acquired for Tax Title Lien LiquidationComparison of Water and Sewer Utility Levies and CollectionsComparative Schedule of Fund BalancesRequired Supplementary Information - Postemployment Health BenefitsOfficials in Office and Surety Bonds

181182183184184184185185185186187

PART IV - GENERAL COMMENTS AND RECOMMENDATIONS 188

General CommentsRecommendationsAcknow ledgement

189 - 201202203

TOWNSHIP OF EDISON

MIDDLESEX COUNTY, NEW JERSEY

PART I

INDEPENDENT AUDITOR'S REPORT

FINANCIAL STATEMENTS

-1-

HODULIK & MORRISON,P.A.CERTIFIED PUBLIC ACCOUNTANTS

REGISTERED MUNICIPAL ACCOUNTANTS

PUBLIC SCHOOL ACCOUNTANTS

1102 RARITAN AVENUE, P.O. BOX 1450

HIGHLAND PARK, NJ 08904

(732) 393-1000

(732) 393-1196 (FAX)

REW G. HODULIK, CPA, RMA, PSA:iRT S. MORRISON, CPA, RMA, PSA

MEMBERS OF:AMERICAN INSTITUTE OF CPA'SNEW JERSEY SOCIETY OF CPA'S

REGISTERED MUNICIPAL ACCOUNTANTS OF N.J.\IN BOOS, CPA, PSA

INDEPENDENT AUDITOR'S REPORT

Honorable Mayor and Membersof the Municipal Council

Township of EdisonMiddlesex County, New Jersey

We have audited the accompanying balance sheets - regulatory basis of the various funds of the Township ofEdison, Middlesex County, New Jersey, as of and for the year then ended December 31, 2011 and the relatedstatements of operations and changes in fund balance - regulatory basis for the year then ended and the relatedstatements of revenues - regulatory basis and statements of expenditures - regulatory basis of the various fundsfor the year ended December 31,2011, which collectively comprise the Township's financial statements as listedin the table of contents. These financial statements are the responsibility of the Township's management. Ourresponsibility is to express an opinion on these financial statements based on our audit.

Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standardsgenerally accepted in the United State of America, the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States, and the auditrequirements prescribed by the Division of Local Government Service, Department of Community Affairs, Stateof New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

The financial statement referred to in the first paragraph include the Statement of Governmental Fixed Assets. Asdiscussed in Note 2 to the financial statements, the Statement of Governmental Fixed Assets is unaudited andrepresents 100 percent of the assets of the Governmental Fixed Assets.

The financial statements referred to above include the assets and liabilities of the Township's Length of ServiceAwards Program Plan (LOSAP), which by regulation, is subject to an accountant's review report and isunaudited. The Length of Service Awards Program Plan is included in the Trust Fund.

As described in Note 2, these financial statements were prepared in conformity with accounting principlesprescribed or permitted by the Division of Local Government Services, Department of Community Affairs, Stateof New Jersey, that demonstrate compliance with the modified accrual basis, with certain exceptions, and thebudget laws of New Jersey, which is a comprehensive basis of accounting other than accounting principlesgenerally accepted in the United States of America. These prescribed principles are designed primarily fordetermining compliance with legal provisions and budgetary restrictions, and as a means of reporting on thestewardship of public officials with respect to public funds. Accordingly, the accompanying financial statementsare not intended to present financial position and results of operations in accordance with accounting principlesgenerally accepted in the United States of America.

-2-

In our opinion, because the prescribed regulatory basis of accounting as described in the fifth paragraph is utilizedby the Township of Edison for the purpose of financial statement preparation, the financial statements referred toabove do not present fairly, in conformity with accounting principles generally accepted in the United States ofAmerica, the financial position of the Township of Edison as of and for the year ended December 31,2011 or theresults of its operations, or cash flows of its proprietary fund type for the year then ended.

However, in our opinion, except for the effects of such adjustments, if any, as might have been determined hadwe audited the Statement of Governmental Fixed Assets, the financial statements - regulatory basis referred toabove present fairly, in all material respects, the financial position - regulatory basis of the various funds of theTownship of Edison for the year ending December 31, 2011 and the results of operations and changes in fundbalance - regulatory basis for the year then ended and the revenues - regulatory basis and expenditures -regulatory basis of the various funds for the year ended December 31, 2011 on the basis of accounting describedin Note 2.

In accordance with Government Auditing Standards, we have also issued a report dated August 1, 2012 on ourconsideration of the Township of Edison's internal control over financial reporting and our tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing, and not to provide an opinion on the internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards and should be considered in assessing the results of our audit.

Our audit was made for the purpose of forming an opinion on the financial statements of the Township of Edison,County of Middlesex, New Jersey. The information included in Part III - Supplementary Schedules and Part IV -Supplementary Data, as listed in the table of contents, are presented for purposes of additional analysis and arenot a required part of the financial statements of the Township of Edison, County of Middlesex, New Jersey. Theinformation included in Part II- the accompanying schedule of expenditures of federal awards and are presentedfor purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-B3, Auditsof States, Local Governments, and Non-Profit Organizations, Single Audit Policy for Recipients of FederalGrants, State Grants and State Aid and are also not a required part of the financial statements. The Part II- theschedules of expenditures of federal awards and the Part III - Supplementary Schedules are the responsibility ofmanagement and were derived from and relate directly to the underlying accounting and other records used toprepare the financial statements. The information has been subjected to auditing procedures applied in the audit ofthe financial statements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the financial statements, or to the financialstatements themselves, and other additional procedures in accordance with auditing standards generally acceptedin the United States of America. In our opinion, the information is fairly stated, in all material respects, in relationto the financial statements - regulatory basis taken as a whole. . The schedules and information contained in PartIV - Supplementary Data have not been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, accordingly, we do not express an opinion or provide any assurance on them.

AlIIat£' r:' /tf{M(;/I(1 //1.HODULIK & MORRISON, P.A.Certified Public Accountants

~~rnnw

Robert S. MorrisonRegistered Municipal AccountantNo. 412

Highland Park, New JerseyAugust 1,2012

-3-

FINANCIAL STATEMENTS

-4-

Exhibit -ATOWNSHIP OF EDISON


CURRENT FUNDBALANCE SHEET - REGULATORY BASIS

DECEMBER 31, 2011 AND 2010

BALANCE BALANCE LIABILITIES, RESERVES BALANCE BALANCE

ASSETS REF. DEC. 31,2011 DEC. 31,2010 AND FUND BALANCE REF DEC. 31,2011 DEC. 31,2010

Cash and Investments - Treasurer A-4 $ 29,961,365.25 $ 32,445,761.70 Liabilities:Cash - Change Fund A-5 675.00 475.00 Appropriation Reserves A-3,A-15 $ 4,639,726.82 $ 6,213,065.01

Due to State ofNJ. per Ch. 20, P.L. 1976 A-6 8,900.82 10,500.00 Reserve for Encumbrances A-18 807,702.51 1,333,772.58Tax Overpayments A-16 59,267.78 443,738.07

29970941.07 32,456,736.70 Reserve for Tax Appeals A-17 1,500,000.00 2,450,000.00Special Emergency Note A-4 1,270,000.00

Receivables With Offsetting Reserves: Accounts Payable A-20 331,676.61 454,884.04

Real Estate Taxes Receivable A-7 32,311.44 78,384.59 Reserve for Special Garbage District A-19 4,517,249.42 4,361,643.41

Tax Title Liens A-8 459,732.74 465,866.43 Due to State ofN.1. per Ch. 20, P.L. 1976 A-6

Property Acquired for Taxes (At Prepaid Taxes A-11 2,124,746.74 1,377,316.12

Assessed Valuation) A-9 3,948,486.98 3,948,486.98 Reserve for Accrued Interest Payable -

Due from Shelterd Workshop A-21 62,981.83 Green Acres Debt A-14 377,741.65 377,741.65

Due from Developer's Escrow Trust A-12 304.75 Reserve for Maint. of Free Public

Due from Assessment Trust Fund A-12 18,760.00 18,760.00 Library with State Aid A-14 17,642.40 22,408.30

Due from Trust Fund A-12 2,934.80 Reserve for Police & Firemen Pension A-14 1,535.40 1,535.40

(J1Due from CDBG A-12 38,250.00 120,322.14 Reserve for Advanced Medical Claims A-14 1,660,130.48 1,660,130.48

Due from General Capital Fund A-12 3,654.26 6,238.92 Reserve for Public Defender A-14 29,118.28

Due from Animal Control Fund A-12 100.41 Reserve for NJ Environmental Infrastructure

Due from Water Operating Fund A-12 201.03 1,646.26 Trust Fund A-14 109,562.21 104,953.43Reserve for LOSAP A-14 100,000.00

4,501,496.86 4,705,926.70 Reserve for Condominium Services A-14 110,000.00Due to Sewer Operating Fund A-13 561.11 329.53

Deferred Charges: Due to Trust Fund A-13 30,995.10

Overexpenditures of Appropriations A-23 829,052.76 Due to Federal & State Grant Fund A-13 1,834,673.01 1,204,183.73

Special Emergency A-23 1,270,000.0019,493,211.24 20,034,820.03

1,270000.00 829052.76Reserve for Receivables Reserve 4,501,496.86 4,705,926.70

Total Regular Fund 35,742,437.93 37991,716.16 Fund Balance A-I 11 747 729.83 13,250,969.43

Total Regular Fund 35,742,437.93 37,991,716.16

State and Federal Grant Fund: State and Federal Grant Fund:

Grants Receivable A-24 1,155,097.93 2,339,481.93 Reserve for State and Federal Grants:

Due from Current Fund A-25 1 834673.01 1204,183.73 Appropriated A-26 1,403,925.40 2,861,631.80Unappropriated A-27 170,529.60 251,389.79

Total State and Federal Grant Fund 2,989770.94 3,543,665.66 Reserve for Encumbrances A-18 1,413,415.94 428,744.07Unallocated Receipts A-28 1,900.00 1,900.00

Total State and Federal Grant Fund 2989,770.94 3,543,665.66

$ 38,732,208.87 $ 41,535,381.82 $ 38,732,208.87 $ 41,535,381.82

Note: See Notes to Financial Statements

Exhibit - A-IPage 1 of2


CURRENT FUNDSTATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE

REGULATORY BASISFOR THE YEAR ENDED DECEMBER 31, 2011

REVENUE AND OTHER INCOME

Total Revenues

REF. 2011 2010

A-2 $ 9,889,276.83 $ 9,904,534.95A-2 29,094,484.63 32,100,318.95A-2 233,642.59 3,136,90l.25A-2 328,004,819.42 316,505,207.69A-2 1,270,432.21 1,282,084.86

A-21 62,981.83A-6 399,269.11A-13 12,360.51A-15 4,041,970.04 2,400,621.49A-20 315,392.14 249,407.31A-12 269533.17 27159.68

373: 182,532.86 366,017,865.80

Fund Balance UtilizedMiscellaneous Revenue AnticipatedReceipts from Delinquent TaxesReceipts from Current TaxesNon-Budget RevenueOther Credits to Income:Acct. Receivable - Edison ShelteredWorkshop (Net)

Senior Citizens and VeteransGrants Canceled (Net)Unexpend. Balance of Approp. Reserves

Accounts Payable CanceledInterfund Loans Returned (Net)

EXPENDITURES

Budget and Emergency Appropiations:Operations:Salaries and WagesOther Expenses

Capital ImprovementsMunicipal Debt ServiceDef. Charges and Regulatory Expend.For Local School Purposes

Special District TaxesLocal District School TaxCounty TaxCty. Share of Added and Omitted TaxesOpen Space TrustRefund of Prior Year RevenuesEdison Sheltered Workshop (Net)Cancelled Grants (Net)

Total Expenditures

A-3 $ 56,713,079.00 $ 59,915,610.76A-3 36,681,679.82 36,942,753.18A-3 100,000.00 100,000.00A-3 7,591,216.82 8,069,428.34A-3 20,273,109.11 12,189,751.95A-3 1,130,587.50 1,206,925.00A-19 9,017,457.01 9,369,750.10A-22 186,686,376.00 180,716,981.00A-22 51,314,222.88 47,212,283.88A-22 181,936.31 108,127.43A-13 713,954.93 732,228.20A-4 72,495.89A-21 4,192.02A-13 51417.88 4,900.00

370,455,037.26 356,645,427.75

2,727,495.60 9,372,438.05Excess in Revenues

- 6-


CURRENT FUNDSTATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE


Excess in Revenues (brought forward) $ 2,727,495.60 $

Add: Expenditures Included AboveWhich are by Statute DeferredCharges to Succeeding Years A- 3 5,658,541.63

Regulatory Excess to Fund Balance 8,386,037.23

FUND BALANCE

Balance - December 31 A 13,250,969.43

21,637,006.66

Decreased by:Utilized as Anticipated Revenue A-2 9,889,276.83

11,747,729.83 $ ===13::!ii,2=5=0,=96=9=.4=3Balance - December 31 A $


-7-

Exhibit - A-IPage 2 of2

9,372,438.05

829,052.76

10,201,490.81

12,954,013.57

23,155,504.38

9904534.95

Surplus Anticipated

Total Surplus Anticipated

Miscellaneous Revenues:Licenses:Alcoholic BeveragesOther

Fees and Permits:Other

Fines and Costs:Municipal CourtInterest and Costs on TaxesLatchkey Program FeesCable TV Franchise FeeInterest on Investments and DepositsTrailer Court FeesFalse Alarm FeesHost Community BenefitsRecreation FeesRailroad Station RentEnergy Receipts TaxGarden State Trust FundConstruction Code FeesUniform Fire Safety Act -Life HazardUse Fees

EMT Ambulance BillingCity Hotel TaxClean Communities ProgramDepartment of Energy - EECBG ProgramEmpire Recycling - Edison Environmental CommissionMiddlesex County Narcotics GrantMiddlesex County Oak Crest Swim Club GrantMunicipal Alliance Program - Summer Outreach ProgramMunicipal Alliance Program - Youth Service CommissionMunicipal Alliance Program - Competitive RFAGrantNJDOT - Highway Safety Fund GrantSafe & Secure Communities GrantMunicipal Alliance on Alcoholand Drug Abuse

Solid Waste SubsidyNJ Health Officers' Association - HINI GrantNJ Department of Health - HepatitisUS Dept of Energy AFG - FEMA GrantEdward Byrne Memorial Justice Assistance GrantPayment in lieu of Taxes - Tax Exempt PropertyMiddlesex County Nutrition Program


CURRENT FUNDSTATEMENT OF REVENUES - REGULATORY BASIS

FOR THE YEAR ENDED DECEMBER 31, 2011

ANTICIPATED201l N.J.S.A.

BUDGET 40A:4-87

A-I $ 9889,276.83 $ $

9,889,276.83

A-I0 104,000.00A-IO 358,000.00

A-I0 1,310,000.00

A-I0 510,000.00A-IO 350,000.00A-1O 1,575,000.00A-IO 270,000.00A-IO 374,452.73A-IO 9,800.00A-I0 45,000.00A-IO 475,200.00A-1O 122,000.00A-IO 118,000.00A-I0 16,042,726.00A-IO 15,371.00A-I0 1,550,000.00

A-I0 350,000.00A-I0 1,691,000.00A-I0 750,000.00A-24 144,149.14A-24 749,700.00A-24 1,000.00A-24 12,000.00A-24A-24 20,000.00A-24 7,000.00A-24A-24A-24 60,000.00

A-24 84,064.00A-24 259,194.81A-24 10,000.00A-24 5,000.00A-24 341,696.00A-24 37,897.00A-I0 280,000.00A-IO 6,000.00

100,000.00

5,000.0068,093.91

30,401.00

- 8-

REALIZED

ExbibitA- 2Page lof3

EXCESS OR(DEFICIT)

9,889276.83

9889,276.83 $ _

106,345.73457,276.27

1,239,800.11

760,452.01413,315.19

1,401,304.22278,350.00372,696.6010,855.6071,280.00

424,935.8689,273.3096,511.68

16,042,726.0015,371.00

1,543,614.01

366,581.701,433,873.97769,956.92144,149.14749,700.00

1,000.0012,000.00

100,000.0020,000.007,000.005,000.00

68,093.9160,000.00

84,064.00259,194.8110,000.005,000.00

341,696.0068,298.00

356,545.434,500.00

2,345.7399,276.27

( 70,199.89)

250,452.0163,315.19

( 173,695.78)8,350.00

( 1,756.13)1,055.60

26,280.00( 50,264.14)( 32,726.70)( 21,488.32)

( 6,385.99)

16,581.70( 257,126.03)

19,956.92

76,545.43( 1,500.00)

Exhibit A- 2Page 2 of3



FOR THE YEAR ENDED DECEMBER 31, 20 II

ANTICIPATED2011 NJ.SA EXCESS OR

BUDGET 40A:4-87 REALIZED (DEFICIT)

Miscellaneous Revenues: (Cont'd.)

Police Off-Duty Administration Fees - Due from Trust A-10 $ 275,000.00 $ $ 275,000.00 $Reimbursement - Open Space Trust Fund - Debt Service A-10 628,723.17 628,723.17

Total Miscellaneous Revenues A-I 28,941,973.85 203,494.91 29,094,484.63 { 50,984.132

Receipts from Delinquent Taxes A-I, A-2 75000.00 233,642.59 158642.59

Subtotal General Revenues 38,906,250.68 203494.91 39217,404.05 107658.46

Amount to be Raised by Taxation forSupport of Municipal Budget:Local Tax for Mun. Purposes A-7 73,406,079.04Addition to Local Dist. School Tax A-7 1,166,175.00Minimum Library Tax A-7 5243,514.96

Total Amount to be Raised by Taxesfor Support of Municipal Budget A-2 79815769.00 82,092,517.86 2,276,748.86

Total Budget Revenues 118,722,019.68 203,494.91 121,309,921.91 2,384,407.32

Non-Budget Revenues A-l,A-2 1,270,432.21 I 270,432.21

GRAND TOTALS $ 118,722,019.68 $ 203494.91 $ 122,580,354.12 $ 3,654,839.53

Ref A-3 A-3 A-I

-9-

Exhibit - A-2Page 3 of3




ANALYSIS OF REALIZED REVENUES

Receipts from Delinquent Taxes:Delinquent Tax CollectionsTax Overpayments AppliedTax Title Lien Collections

A-7A-7A-8

$ 38,343.4135,391.22159,907.96

A-2 $ ===2==33=,=64=2=.5=9

Allocation of Current Tax Collections:2011 Cash Collections A-7 $ 325,914,135.48Prepaid Taxes Applied A-7 1,377,316.12State Share for Sr. Citizenand Veteran Deductions A-7 713,367.82

A-I 328,004,819.42

Allocated to:School, County, Open Space andSpecial District Taxes A-13,A-19,A-22 247,913,947.13

80,090,872.29

Add: Res. for Uncollected Taxes A-3 2,001,645.57

A-2 $ 82,092,517.86


-10 -

TOWNSHIP OF EDISON Exhibit - A- 3MIDDLESEX COUNTY NEW JERSEY Page 1 of9

CURRENT FUNDSTATEMENT OF EXPENDITURES - REGULATORY BASIS

FOR THE YEAR ENDED DECEMBER 31 2011

BUDGET EXPENDED UNEXPENDED2011 AFTER PAID OR BALANCE

BUDGET MODIFICATION CHARGED ENCUMBERED RESERVED CANCELLEDOperations Within "CAPS"

GENERAL GOVERNMENT

Office of the MayorSalaries and Wages $ 39,984.00 $ 39,984.00 $ 39,983.86 $ $ 0.14 $Other Expenses 3,264.00 3,264.00 2,158.67 110.00 995.33

Municipal CouncilSalaries and Wages 34,680.00 34,680.00 34,218.58 461.42Other Expenses 1,681.00 1,681.00 1,305.69 155.00 220.31

Office of the Township ClerkSalaries and Wages 163,414.00 166,294.00 166,290.66 3.34Other Expenses 80,506.00 70,506.00 56,899.54 3,395.70 10,210.76

DEPARTMENT OF ADMINISTRATION

Office of the Business AdministratorSalaries and Wages 314,313.00 330,378.00 330,374.94 3.06Other Expenses 17,946.00 17,946.00 12,322.00 234.76 5,389.24

Division of Communication

'"""" Salaries and Wages 98,952.00 111,252.00 109,200.47 2,051.53'"""" Other Expenses 4,307.00 4,307.00 2,082.78 74.90 2,149.32

Division of Central PurchasesSalaries and Wages 115,938.00 145,938.00 145,795.26 142.74Other Expenses:Postage 107,678.00 97,678.00 57,815.23 39,862.77Centralized Stores 60,625.00 60,625.00 47,254.42 5,756.00 7,614.58Miscellaneous Other Expenses 1,143.00 1,143.00 1,143.00

Division of PersonnelSalaries and Wages 103,663.00 112,763.00 111,685.22 1,077.78Other Expenses 86,142.00 26,142.00 1,948.25 24,193.75

DEPARTMENT OF LAW

Office of the DirectorSalaries and Wages 43,138.00 43,138.00 42,598.09 539.91Other Expenses (Emergency - $1.270,000) 519,252.00 1,789,252.00 1,597,686.39 191,565.61

TOWNSHIP OF EDISON Exhibit - A- 3MIDDLESEX COUNTY, NEW JERSEY Page 2 of9


FOR THE YEAR ENDED DECEMBER 31 20 II



DEPARTMENT OF FINANCE

Office of the DirectorSalaries and Wages $ 86,142.00 $ 74,142.00 $ 73,153.30 $ 988.70 $Other Expenses 4,759.00 4,759.00 2,776.16 1,982.84Other Expenses -Audit Services 72,088.00 72,088.00 (36,992.00) 107,655.00 1,425.00

Division of Accounts and ControlsSalaries and Wages 34,298.00 34,298.00 33,923.85 374.15Other Expenses 46,667.00 36,667.00 22,257.00 14,410.00Other Expenses - Data Processing 51,531.00 41,531.00 27,249.65 5,373.70 8,907.65

Division of Custody and DisbursementsSalaries and Wages 176,584.00 182,844.00 182,842.29 1.71Other Expenses 1,938.00 1,938.00 186.55 1,466.10 285.35

Division of Tax CollectionsSalaries and Wages 215,137.00 251,237.00 251,233.53 3.47Other Expenses 34,394.00 14,394.00 8,287.73 5,115.90 990.37

Division of Assessment,...... Salaries and Wages 151,140.00 165,575.00 165,573.99 1.01IV Other Expenses 69,191.00 68,191.00 48,446.89 19,744.11

DEPARTMENT OF RECREATION & PARKS

Division of RecreationSalaries and Wages 1,441,146.00 1,475,856.00 1,475,851.63 4.37Other Expenses 515,520.00 505,520.00 431,670.48 32,973.55 40,875.97

Division of Public BuildingsOther Expenses:Telephones 159,770.00 159,770.00 158,299.92 1,397.95 72.13

Heat, Light and Power 882,660.00 864,590.00 615,721.35 13,620.06 235,248.59Division of ParksSalaries and Wages 735,000.00 680,000.00 659,848.17 20,151.83Other Expenses 88,700.00 79,700.00 47,497.10 9,117.25 23,085.65



FOR THE YEAR ENDED DECEMBER 31, 20 II



DEPARTMENT OF HEALTH ANDHUMAN RESOURCES

Division of HealthSalaries and Wages $ 1,236,150.00 $ 1,364,250.00 $ 1,358,491. 15 $ 5,758.85 $Other Expenses 85,000.00 60,000.00 42,291.63 5,924.11 11,784.26

Division of Human ResourcesSalaries and Wages 41,500.00 41,500.00 41,500.00Other Expenses 450.00 450.00 110.82 339.18

Division of Senior Citizen ServicesSalaries and Wages 318,000.00 343,500.00 338,316.28 5,183.72Other Expenses 32,000.00 24,500.00 21,708.70 1,806.62 984.68

Community ShuttleSalaries and Wages 44,455.00 59,455.00 57,114.89 2,340.11Other Expenses 10,000.00 5,000.00 2,704.51 289.53 2,005.96

BRIDGES Youth ProgramOther Expenses 25,000.00 25,000.00 16,555.19 21.35 8,423.46

'""'"' Division of PoliceU.J Salaries and Wages:

Police 24,180,337.00 24,400,242.00 24,400,239.65 2.35Emergency Dispatch - 911 1,600,000.00 1,685,650.00 1,685,635.86 14.14Police Vehicle Maintenance 203,000.00 195,500.00 193,909.34 1,590.66Other Expenses:Police 575,719.00 575,719.00 526,699.54 43,276.36 5,743.10Emergency Dispatch - 911 388,082.00 358,082.00 268,103.21 38,971.59 51,007.20Police Vehicle Maintenance 137,650.00 117,650.00 93,723.78 14,111.78 9,814.44

Uniform Fire Safety ActSalaries and Expenses 150,000.00 135,000.00 133,223.13 1,776.87Other Expenses 200,000.00 20,000.00 5,170.11 590.25 14,239.64

Division of FireSalaries and WagesFire 16,831,323.00 17,108,457.00 17,100,942.42 7,514.58Other Expenses:Fire 333,838.00 333,838.00 236,341.36 75,888.17 21,608.47Fire Hydrant Service 1,345,800.00 1,345,800.00 1,252,816.97 92,983.03Aid to Volunteer Fire Companies 110,000.00 110,000.00 40,000.00 69,912.08 87.92






DEPARTMENT OF PUBLIC WORKS

Office of the DirectorSalaries and Wages:

Municipal Garage $ 804,500.00 $ 719,500.00 $ 702,748.52 $ 16,75148 $Vehicle Impound Area 88,000.00 70,700.00 70,656.71 43.29

Other Expenses:Municipal Garage 68,714.00 48,714.00 31,854.88 7,99157 8,867.55Fuels & Lubricants for Municipally 735,399.00 809,415.00 723,574.87 75,621.03 10,219.10Vehicle Impound Area 4,900.00 4,900.00 3,008.86 231.86 1,659.28Street Lighting 1,000,000.00 1,000,000.00 979,393.41 20,606.59

Division of StreetsSalaries and Wages 1,600,000.00 1,480,000.00 1,451,335.34 28,664.66Other Expenses 330,500.00 400,500.00 291,161.33 55,487.36 53,851.31

Division of Public BuildingsSalaries and Wages 1,323,734.00 1,179,734.00 1,145,718.59 34,015.41Other Expenses 187,861.00 187,861.00 115,655.38 62,657.36 9,548.26

Division of Sanitation

"'""" Salaries and Wages:~Street Cleaning and Refuse and Garbage Collection 1,100,000.00 1,100,000.00 1,100,000.00

Other Expenses:Street Cleaning and Refuse and Garbage Collection 39,850.00 39,850.00 30,698.31 77.66 9,074.03

Public Defender (PL. 1997,c.256)Salaries and Wages 29,000.00Other Expenses 2,000.00 2,000.00 2,000.00

DEPARTMENT OF COMMUNITY DEVELOPMENT

Salaries and Wages:Division of Planning and Zoning 290,000.00 302,500.00 298,750.15 3,749.85Rent Control Board 7,500.00 11,500.00 11,358.87 141.13Division of Engineering 426,787.00 406,787.00 367,397.20 39,389.80

Other Expenses:Division of Planning and Zoning 1,575.00 1,575.00 411.84 1,163.16Planning Board 33,950.00 33,950.00 19,253.88 14,696.12Zoning Board Adjustment 33,450.00 25,450.00 21,143.70 4,306.30Rent Control Board 7,500.00 1,000.00 1,000.00Environmental Commission 300.00 300.00 280.00 20.00Division of Engineering 102,612.00 102,612.00 15,322.14 2,762.50 84,527.36






UNCLASSIFIED

Insurance:Group Insurance Plan for Employees $ 15,198,191.00 $ 15,198,191.00 $ 12,747,818.75 $ 2,450,372.25 $Other insurance and Surety bonds 1,507,113.00 1,507,113.00 1,247,401.03 12,277.94 247,434.03

First Aid Organizations-Aid and MaintenanceOther Expenses 105,000.00 105,000.00 105,000.00

Emergency Management ServicesOther Expenses 18,900.00 13,900.00 2,601.40 11,298.60Ethics Commission 10,000.00 1,000.00 577.00 423.00Reverse for Tax Appeals (Emergency $4,388,541.63) 1,500,000.00 5,888,541.63 5,888,541.63Condominium Services 110,000.00 110,000.00 110,000.00Employees Unemployment Insurance 350,000.00 350,000.00 350,000.00Celebration of Public Events 50,000.00 48,000.00 47,740.50 259.50Accumulated Leave Compensation 500,000.00 500,000.00 500,000.00Health Insurance Waiver

I Other Expenses 613,175.00 613,175.00 613,175.00

'""""CJl Municipal CourtSalaries and Wages 583,888.00 498,888.00 496,848.31 2,039.69Other Expenses 77,732.00 167,732.00 37,352.72 46,035.43 84,343.85

Uniform Construction CodeEdison Constr, Enforcing Agency:Salaries and Wages 750,000.00 811,505.00 811,502.85 2.15Other Expenses 965,000.00 665,000.00 552,656.06 2,439.11 109,904.83

Total Operations Within "CAPS" 84,968,726.00 90,486,557.63 85,530,128.41 702,819.53 4,253,609.69

Contingent 50,000.00 50,000.00 13,872.57 3,500.00 32,627.43

Total Operations Including Contingent Within "CAPS" 85,018,726.00 90 536,557.63 85,544,000.98 706,319.53 4286,237.12

DETAIL:Salaries and Wages 55,361,703.00 55,763,047.00 55,588,263.10 174,783.90Other Expenses 29,657,023.00 34773510.63 29955737.88 706,319.53 4,111,453.22





BUDGET MODIFICATION CHARGED ENCUMBERED RESERVED CANCELLED

DEFERRED CHARGES AND STATUTORY EXPENDITURESMUNICIPAL WITHIN "CAPS"

Deferred ChargesPrior Year Bills $ 3,469.00 $ 3,469.00 $ 3,319.00 $ $ $ 150.00Overexpenditure of Appropriations 829,052.76 829,052.76 829,052.76Projected Deficit - Water Utility Budget 14,452.73 14,452.73 14,452.72 O.oJPrior Year Bills - LOSAP 125,000.00 125,000.00 68,000.00 57,000.00

Statutory Expenditures:Contribution to:Public Employment Retirement System 1,643,447.00 1,643,447.00 1,634,795.82 8,651.18Social Security System (OAS.I.) 2,083,274.00 2,083,274.00 1,924,809.62 158,464.38Police and Firemen's Retirement System of N.J. 9,971,522.00 9,971,522.00 9,971,522.00DCRP Employer Contributions 1,500.00 1500.00 1 500.00

Total Deferred Charges and REGULATORY ExpendituresMunicipal Within "CAPS" 14671,717.49 14671717.49 14447451.92 167 115.56 57150.01

....... Total General Appropriations for Municipal0\ Purposes Within "CAPS" 99,690,443.49 105,208,275.12 99,991,452.90 706,319.53 4453,352.68 57,150.01

Operations Excluded from "CAPS"

OTHER OPERATIONS EXCLUDED FROM "CAPS"

Maintenance of Free Public Library 5,243,514.96 5,243,514.96 5,108,757.32 83,571.15 51,186.49Division of FireEMT ServicesSalaries and Wages 703,000.00 843,710.00 843,707.89 2.11Other Expenses 270,000.00 270,000.00 117,002.63 17,811.83 135,185.54

Length of Service Award Program (LOSAP)Other Expenses 100,000.00 100,000.00 100,000.00

Construction Code Enforcement-CCOSalaries and Wages 46,322.00 46,322.00 46,322.00Other Expenses 78,000.00 78 000.00 78,000.00

Total Other Operations Excludedfrom "CAPS" 6440,836.96 6581546.96 6293,789.84 101 382.98 186,374.14





BUDGET MODIFICATION CHARGED ENCUMBERED RESERVED CANCELLEDOperations Excluded from "CAPS"

STATEAND FEDERAL PROGRAMS OFFSET BY REVENUES

Clean Communities Act $ 144,149.14 $ 144,149.14 $ 144,149.14 $ $ $Empire Recycling - Edison Environmental Commission 1,000.00 1,000.00 1,000.00Middlesex County Narcotics Grant 12,000.00 12,000.00 12,000.00Middlesex County Oak Crest Swim Club Grant 100,000.00 100,000.00Municipal Alliance on Alcoholism and Drug Abuse 84,064.00 84,064.00 84,064.00Municipal Alliance Program - Summer Outreach Program 20,000.00 20,000.00 20,000.00Municipal Alliance Program - Youth Services Commission 7,000.00 7,000.00 7,000.00Municipal Alliance - Competitive RFA Grant 5,000.00 5,000.00NJ State Highway Safety Program - Safe Corridors 68,093.91 68,093.91Safe and Secure Communities 60,000.00 60,000.00 60,000.00Solid Waste Subsidies 259,194.81 259,194.81 259,194.81NJ Health Officers' Association - HINI Grant 10,000.00 10,000.00 10,000.00NJ Department of Health - Hepatitis 5,000.00 5,000.00 5,000.00

, US Dept of Energy AFG - FEMA Grant 341,696.00 341,696.00 341,696.00

;->. Edward Byrne Memorial Justice Assistance Grant 37,897.00 68,298.00 68,298.00

'l US Department of Energy - EECBG Program 749700.00 749700.00 749700.00

Total Public and Private Revenues Offsetby Revenues 1731700.95 I 935,195.86 1935,195.86

Total Operations Excluded from "CAPS" 8,172,537.91 8,516,742.82 8,228,985.70 101,382.98 186,374.14

DETAIL:Salaries and Wages 809,322.00 950,032.00 950,029.89 2.11

Other Expenses 7363,215.91 7,566,710.82 7278,955.81 101,382.98 186372.03

TOWNSHIP OF EDISON Exhibit - A- 3MIDDLESEX COUNTY, NEW JERSEY Page 80f9




BUDGET MODIFICATION CHARGED ENCUMBERED RESERVED CANCELLED

CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"

Capital Improvement Fund $ 100,000.00 $ 100,000.00 $ 100,000.00 $ $ $

Total Capital Improv. - Excl. from "CAPS" 100,000.00 100,000.00 100,000.00

Operations Excluded from "CAPS"

MUNICIPAL DEBT SERVICE - EXCLUDED FROM "CAPS"

Payment of Bond Principal 3,690,000.00 3,690,000.00 3,690,000.00

Payment of Bond Anticipation Notes and Capital NotesInterest on Bonds 2,575,327.38 2,575,327.38 2,575,327.32 0.06

Interest on Notes 78,572.33 78,572.33 78,572.26 0.07

Green Trust Prin. & Interest 254,226.00 254,226.00 254,225.57 0.43

M.C.LA. Capital Equipment Lease Payments 763,823.00 763,823.00 763,822.67 0.33

NJEIT Loan - Principal & Interest 229,269.00 229,269.00 229,269.00

I-' Total Mun. Debt Service - Excl. from "CAPS" 7,591,217.71 7,591,217.71 7,591,216.82 0.89

CIJ

Total General Appropriations for MunicipalPurposes Excluded from "CAPS" 15,863,755.62 16,207,960.53 $ 15,920,202.52 101,382.98 186,374.14 0.89

FOR LOCAL SCHOOL DISTRICT PURPOSESEXCLUDED FROM "CAPS"

Type I District School Debt ServicePayment of Bond Principal 1,095,000.00 1,095,000.00 1,095,000.00

Interest on Bonds 71,175.00 71,175.00 35,587.50 35,587.50

Total of Type I District School DebtService - Excluded from "CAPS" 1,166,175.00 1,166,175.00 1,130,587.50 35,587.50

Total General Appropriations excluded from "CAPS" 17,029,930.62 17,374,135.53 17,050,790.02 101,382.98 186,374.14 35,588.39

Subtotal General Appropriations 116720,374.11 122,582410.65 117,042,242.92 807702.51 4639,726.82 92,738.40

Reserve for Uncollected Taxes 2001645.57 2,001 645.57 2,001,645.57

Total General Appropriations $ 118,722,019.68 $ 124,584,056.22 $ 119,043,888.49 $ 807,702.51 $ 4,639,726.82 $ 92,738.40

Total General Appropriations (brought forward)

Adopted BudgetApprop. by N.J.S.A. 40A:4-87Emergency Appropriation

Reserve for Uncollected TaxesDisbursedReserve for State and Federal Grants AppropriatedReserve for LOSAPReserve for Condominium ServicesReserve for Tax AppealsDeferred Charges





A-2A-2A,A-I

BUDGET2011 AFTER PAID OR

BUDGET MODIFICATION CHARGED

$ 118,722,019.68 $ 124,584,056.22 $ 119,043,888.49 $

A-I

$ 118,722,019.68203,494.91

5658,541.63

$ 124,584,056.22

s 2,001,645.57112,567,994.30

1,935,195.86100,000.00110,000.00

1,500,000.00829052.76

$ 119,043,888.49

EXPENDED

A-2A-4A-13A-14A-14A-17A-23

ENCUMBERED

807,702.51 $

A-I, A-18

RESERVED

Exhibit - A- 3Page 9 0[9

UNEXPENDEDBALANCE

CANCELLED

A,A-I

4,639,726.82 $===9;:;2,=73=8=.4=0

TOWNSHIP OF EDISON Exhibit - BMIDDLESEX COUNTY, NEW JERSEY Page 1 of2

TRUST FUNDCOMPARATIVE BALANCE SHEET - REGULATORY BASIS

DECEMBER 31. 20ll AND 2010

BALANCE BALANCE LIABILITIES, RESERVES BALANCE BALANCE

ASSETS REF. DEC 31,20ll DEC 31.2010 AND FUND BALANCE REF. DEC 31,20ll DEC 31,2010

Assessment Fund: Assessment Fund:Assessment Liens B-6 $ 97,00 $ 97.00 Due to Current Fund B-18 $ 18,760.00 $ 18,760.00

Assessment Lien Interest and Costs B-5 74.00 74.00 Res. for Assessments, Liens andDue from Trust Other B-17 20,063.00 20,063.00 Interest and Costs B-I0 171.00 171.00

Fund Balance B-1 1303.00 I 303.00

Total Assessment Fund 20:234.00 20:234.00Total Assessment Fund 20,234.00 20234.00

Animal Control Fund: Animal Control Fund:Cash and Investments - Treasurer B-2 56.934.83 155 129.64 Due to State of New Jersey B-ll 7.80 76.20

Due to Current Fund B-18 100.41

Total Animal Control Fund 56,934.83 155 129.64 Reserves For Encumbrances B-12 16,685.58 11,978.73Reserve for Animal Control B-13 40141.04 143074.71

N Total Animal Control Fund 56,934.83 155 129.640

Trust-Other Fund: Trust-Other Fund:Cash and Investments - Treasurer B-2 21,392,860.74 19,984,458.14 Due To Assessment Trust B-18 20,063.00 20,063.00

Due from Current Fund B-17 30,995.10Due to Current Fund B-18 2,934.80

Total Trust-Other Fund 21:423:855.84 19:984:458.14 Other Escrow Funds B-14 1,809,966.34 1,801,751.61Tax Sale Redemption Funds B-16 1,245,643.18 707,073.39Premiums Received at Tax Sale B-16 2,130,154.11 990,058.69Reserve for:Open Space B-9 4,442,348.27 4,323,468.26Off Duty Public Safety B-16 298,980.30 345,856.92Other Reserves B-15 11,476,700.64 1l:793,251.47

Total Trust-Other Fund 21,423:855.84 19,984,458.14

Housing and Commununity Development Housing and Community Development

Act of 1974: Act of1974:Cash and Investments - Treasurer B-2 44,389.07 38,806.88 Reserve for Expenditures - HUD B-16 819,221.63 817,008.21

Accts. Receivable - U.S. Dept. of Reserve for Expenditures - HOPWA B-16 1,516,177.00

Housing and Urban Develop. B-8 991,080.66 1,223,631.05 Reserve for Encumbrances B-16 1,827,613.21 325,107.58

Accts. Receivable - HOPWA B-8 1,649,615.11 1516,177.00 Due to Current Fund B-18 38,250.00 120:322.14

Total Housing and Community Total Housing and CommunityDevelopment Act of 1974 2:685:084.84 2:778:614.93 Development Act of 1974 2:685:084.84 2:778:614.93

TOWNSIDP OF EDISON Exhibit - BMIDDLESEX COUNTY, NEW JERSEY Page 2 of2

TRUST FUNDCOMPARATIVE BALANCE SHEET - REGULATORY BASIS


BALANCE BALANCE LIABILITIES, RESERVES BALANCE BALANCEASSETS REF. DEC 31,2011 DEC 31,2010 AND FUND BALANCE DEC 31,2011 DEC 31,2010

REF.D.E.P. Landfill Closure Escrow Fund: D.E.P. Landfill Closure Escrow Fund:Cash and Investments - Treasurer B-2 $ 3,975,985.83 $ 3,852,354.60 Reserve for Landfill Closure Costs B-16 $ 3,975,985.83 $ 3,852,354.60

Total D.E.P. Landfill Closure Total D.E.P. Landfill ClosureEscrow Fund 3,975,985.83 3,852,354.60 Escrow Fund 3,975,985.83 3,852,354.60

Edison Landfill Closure Trust - Local Edison Landfill Closure Trust - LocalCash and Investments - Treasurer B-2 591,832.02 439,715.64 Reserve for Landfill Closure Costs B-16 591,832.02 439,715.64

Total Edison Landfill Closure Trust - Local Total Edison Landfill Closure Trust - LocalTrust - Local 591,832.02 439,715.64 Trust - Local 591,832.02 439,715.64

B.P.U. Landfill Closure Escrow Fund: B.P.U. Landfill Closure Escrow Fund:Cash and Investments - Treasurer B-2 11,070,983.22 10,764,909.42 Reserve for Landfill Closure Costs B-16 11,070,983.22 10,764,909.42

tv

"""" Total B.P.U. Landfill Closure Total B.P.U. Landfill ClosureEscrow Fund 11,070,983.22 10,764,909.42 Escrow Fund 11,070,983.22 10,764,909.42

SelfInsurance Trust Fund: SelfInsurance Trust Fund:Cash and Investments - Treasurer B-2 764723.59 830,911.95 Reserve for Payment ofInsur. Claims B-16 764,723.59 830911.95

Total SelfInsurance Trust Fund 764723.59 830911.95 Total SelfInsurance Trust Fund 764723.59 830911.95

Developer's Escrow Trust Fund: Developer's Escrow Trust Fund:Cash and Investments - Treasurer B-2 1,191,429.75 1,538,808.99 Developer's Escrow Funds B-16 1,191,429.75 1,538,504.24

Due To Current Fund B-18 304.75

Total Developer's Escrow Trust Fund 1,191,429.75 1,538,808.99Total Developer's Escrow Trust Fund 1,191,429.75 1,538,808.99

LOSAP Fund (Unaudited):Cash and Investments - Trustee B 195,603.24 196479.36 LOSAP Fund (Unaudited):

Res. for LOSAP Funds Held by Trustee B 195,603.24 196479.36

Total LOSAP Fund 195603.24 196,479.36Total LOSAP Fund 195,603.24 196,479.36

$ 41,976,667.16 $ 40,561,616.67 $ 41,976,667.16 $ 40,561 ,616.67


Exhibit - B- 1


ASSESSMENT TRUST FUNDSTATEMENT OF FUND BALANCE - REGULATORY BASIS

FOR THE YEAR ENDED DEC 31, 2011

Balance - December 31, 2010 B $ 1,303.00

Balance - December 31, 2011 B $ ===1,=30=3=.0=0


- 22-

Exhibit - C


GENERAL CAPITAL FUNDBALANCE SHEET - REGULATORY BASIS

DECEMBER 31,2011 AND 2010

BALANCE BALANCEASSETS REF. DEC. 31,2011 DEC. 31,2010

Cash and Investments - Treasurer C-2 $ 24,624,148.70 $ 12,199,876.49Accounts Receivable:Edison Free Public Library C-4 64,178.00 64,178.00

Grants Receivable C-16 228,687.48 228,687.48Deferred Charges to Future Taxation:Funded C-6 58,183,113.31 64,556,414.66Unfunded C -7 16,287,505.28 8,927,505.28

$ 99,387,632.77 $ 85,976,661.91

LIABILITIES, RESERVESAND FUND BALANCE

General Serial Bonds C-12 $ 54,170,500.00 $ 59,070,500.00School Serial Bonds C-13 1,095,000.00Green Trust Loans Payable C-14 1,783,209.45 1,998,535.58NJ Environmental Infrastructure Loan Payable C-17 2,229,403.86 2,392,379.08Bond Anticipation Notes C-9 7,331,485.00 7,331,485.00Due to Current Fund C-5 3,654.26 6,238.92Improvment Authorizations:Funded C-8 21,511,623.11 6,110,169.64Unfunded C-8 5,382,951.87 2,501,985.83

Reserve for Encumbrances C-8 1,592,725.20 2,021,854.27Reserve for:Capital Improv. Fund C-I0 481,281.51 381,281.51Payment of Future DebtService Costs C-11 2,633,338.57 2,545,698.57

Grants Receivable C-15 51,173.53 51,173.53Fund Balance C- 1 2,216,286.41 470,359.98

$ 99,387,632.77 $ 85,976,661.91

There were Bonds and Notes Authorized but not Issued on December 31,2011in the amount of $9,080,643.57 See Exhibit C-18).


- 23-

Balance - December 31,2010

Increased by:Premium on Bonds/BAN Sale

Balance - December 31, 2011


GENERAL CAPITAL FUNDSTATEMENT OF CHANGE IN FUND BALANCE


C

C-2

C


- 24-

Exhibit - C-l

$470,359.98

1,745,926.43

$2,216,286.41

TOWNSHIP OF EDISON Exhibit - DMIDDLESEX COUNTY, NEW JERSEY

WATER UTILITY FUNDBALANCE SHEET - REGULATORY BASIS

DECEMBER 31,2011 AND 2010

BALANCE BALANCE LIABILITIES, RESERVES BALANCE BALANCEASSETS REF. DEC. 31, 2011 DEC. 31, 2010 AND FUND BALANCE REF. DEC. 31, 2011 DEC. 31, 2010

Operating Fund: Operating Fund:Cash and Investments - Treasurer D-5 $ 122,540.30 $ 119,746.06 Due to Current Fund D- 9 $ 201.03 $ 1,646.26

Due to Water Utility Capital Fund D-I0 11,617.13 7,377.66122,540.30 119,746.06 Accrued Interest Payable D-14 4,817.58 4,817.58

Deferred Charges 16,635.74 13,841.50Overexpenditure of Appropriation D-15 4,817.58 4,817.58 Fund Balance D- 1 110,722.14 110722.14

Total Operating Fund 127357.88 124563.64 Total Operating Fund 127357.88 124563.64

Capital Fund:Fixed Capital D-ll 6,978,627.29 6,978,627.29 Capital Fund:Due from Water Utility Operating Fund D-8 11 617.13 7377.66 Bond Anticipation Notes D-13 963,515.00 963,515.00

Reserve for:tv Amortization D-7 5,926,294.51 5,926,294.51(Jl

Deferred Res. for Amortization D-12 88,818.00 88,818.00Fund Balance D- 2 11 616.91 7377.44

Total Capital Fund 6,990,244.42 6,986,004.95 Total Capital Fund 6,990,244.42 6,986,004.95

$ 7,117,602.30 $ 7,110,568.59 $ 7,117,602.30 $ 7,110,568.59

There were no Water Utility Bonds and Notes Authorized but not Issued at December 31,2011.



WATER UTILITY OPERATING FUNDSTATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE

REGULATORY BASISFOR THE YEAR ENDED DECEMBER 31, 20 II

REVENUE AND OTHER INCOME

Deficit (General Budget) D-3 $ __ ....;1:..,:4....:4:,;:.;52:::.:....:....:73;:_

Total Revenue 14452.73

EXPENDITURES

Debt ServiceDeferred Charges and Statutory Expenditures

D-4D-4

14,452.734,817.58

Total Expenditures 19,270.31

Deficit in Revenues 4,817.58

Add: Expenditures Included AboveWhich are by Statute Deferred Chargesto Future Budgets 4817.58D-4

Statutory Excess to Fund Balance

FUND BALANCE

Balance - Beginning of Year D 110722.14

Fund Balance - End of Year D $ ===1I:=0:l:::7::22=.::14=

WATER UTILITY CAPITAL FUNDSTATEMENT OF FUND BALANCE - REGULATORY BASIS


Balance - December 31,2010 D

Increased by:Premium on Sale of BAN's D-8

Balance - December 31, 2011 D

Note: See Notes to Financial Statements - 26-

Exhibit - D-1

Exhibit - D-2

$ 7,377.44

4239.47

$ ===11=,6=16=.9:=1=


WATER UTILITY OPERATING FUNDSTATEMENT OF REVENUES - REGULATORY BASIS


Exhibit - D-3

2011 REALIZED EXCESS ORREF. BUDGET IN 2011 (DEFICIT)

Deficit (General Budget) D-l $ 14,452.73 $ 14452.73 $

$ 14,452.73 $ 14,452.73 $

REF. D-4 D-5


- 27-

Debt Service:Interest on Notes

Deferred Charges and Statutory Expenditures:Deferred Charges:Emergency AuthorizationsOverexpenditures of Appropriations

Ns» Deferred Charges

Accrued Interest on Bonds



WATER UTILITY OPERATING FUNDSTATEMENT OF EXPENDITURES - REGULATORY BASIS


EXPENDED2011

BUDGETBUDGET AFTERMODIFICATION

PAID ORCHARGED ENCUMBERED RESERVED

$ 9,635.15 $ 9,635.15 $ 14,452.73 $ $

Exhibit - D-4

OVER-EXPENDITURES

$ 4,817.58

4817.58 4817.58 4817.58

$ 14452.73 $ 14,452.73 $ 19,270.31 $ $ $ 4817.58

Ref. D-3 D-3 D-l D-15

D-15 $ 4,817.58D-14 14,452.73

$ 192270.31

TOWNSHIP OF EDISON Exhibit- EMIDDLESEX COUNTY, NEW JERSEY

SEWER UTILITY FUNDBALANCE SHEET - REGULATORY BASIS


BALANCE BALANCE LIABILITIES, RESERVES BALANCE BALANCEASSETS REF. DEC. 31,2011 DEC. 31.2010 AND FUND BALANCE REF. DEC. 31.2011 DEC. 31.2010

Operating Fund: Operating Fund:Cash and Investments - Treasurer E-5 $ 3,980,215.37 $ 6,584,045.14 Liabilities:Special Emergency Note E-5 1,270,000.00 Appropriation Reserves E-4,E-19 $ 397,222.54 $ 1,044,053.87Due from Current Fund E-9 561.11 329.53 Due to Sewer Capital Fund E-9 155,467.50Due from Sewer Capital Fund E-9 93091.59 Reserve for Encumbrances E-14 162,399.15 71,897.51

Reserve for MCIA Purchase Payments E-15 253,000.00 253,000.005,343,868.07 6,584,374.67 Sewer Rent Overpayments E-16 65,546.40 54,471.98

Accounts Payable E-18 15,942.44 9,480.48Receivables with Offsetting Reserves: Accrued Interest Payable E-20 24390.73 22,395.42Sewer Rents Receivable E-7 42,349.88 321,047.92Sewer Rent Liens Receivable E-8 3551.15 17,329.35 918,501.26 1,610,766.76

45901.03 338,377.27 Reserve for Receivables Reserve 45,901.03 338,377.27Reserve for Sewer Lien Foreclosure E-17 5,020.64 5,020.64

N Deferred Charges Fund Balance E-l 4,436,941.48 4,968,587.27\0Overexpenditure of Appropriation E-4 16,595.31

Total Operating Fund 5,406,364.41 6,922,751.94Total Operating Fund 5,406,364.41 6,922,751.94

Capital Fund:Serial Bonds E-I0 2,176,500.00 2,221,500.00

Capital Fund: Due to Sewer Utility Operating Fund E-12 93,091.59Cash and Investments - Treasurer E-5 980,744.32 978,626.79 Bond Anticipation Notes E-25 3,780,000.00 3,780,000.00Fixed Capital E-ll 6,834,989.83 6,834,989.83 Encumbrances Payable E-21 85,795.00 164,663.20Fixed Capital Authorized & Uncompleted E-13 1,965,970.17 1,965,970.17 Improvement AuthorizationsDue from Sewer Utility Operating Fund E-12 155,467.50 Funded E-21 4,591.66 4,591.66

Unfunded E-21 991,713.48 1,181,725.77Total Capital Fund 9,781,704.32 9,935,054.29 Capital Improvement Fund E-22 524,500.00 524,500.00

Reserve for Amortization E-23 2,084,260.00 2,039,260.00Deferred Reserve for Amortization E-24 17,750.00 17,750.00Fund Balance E-2 23,502.59 1063.66

Total Capital Fund 9,781,704.32 9,935,054.29$ 15,188,068.73 $ 16,857,806.23

$ 15,188,068.73 $ 16,857,806.23

There were Bonds and Notes Authorized but not Issued on December 31,2011in the amount of $742,450.00 (See Exhibit - E-26).


Exhibit - E-l


SEWER UTILITY OPERATING FUNDSTATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE

REGULATORY BASISFOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

REVENUE AND OTHER INCOME REF. 2011 2010

Fund Balance Anticipated E-3 $ 2,043,246.00 $ 2,043,246.00Sewer Rents E-3 11,934,971.71 11,773,207.53Miscellaneous Revenues E-3 100,349.41 561,481.38Prior Year Voided Checks E-5 531.10Accounts Payable Cancelled E-18 20.00 7,947.85Unexpended Balance of Approp. Reserves E-19 627,281.72 915,029.91

Total Revenue 14,705,868.84 15,301,443.77

EXPENDITURES

Operating:Salaries and Wages E-4 1,825,000.00 1,800,000.00Other Expenses E-4 10,497,034.00 10,497,034.00

Capital Improvements E-4 185,000.00 185,000.00Debt Service E-4 315,855.44 398,425.50Deferred Charges and Statutory Expenditures E-4 386,992.00 296,303.70Refunds of Prior Year Revenues E-5 982.50 102,298.71

Total Expenditures 13,210,863.94 13:279,061.91

Excess in Revenues 1,495,004.90 2,022,381.86

Add: Expenditures Included AboveWhich are by Statute Deferred Chargesto Future Budgets E 16,595.31

Statutory Excess to Fund Balance 1,511,600.21 2,022,381.86

FUND BALANCE

Balance - Beginning of Year E 4,968,587.27 4,989,451.41

6,480,187.48 7,011,833.27Decreased by:Fund Balance Utilized E-l 2,043,246.00 2,043:246.00

Fund Balance - End of Year E $ 4,436,941.48 $ 4,968,587.27

Note: See Notes to Financial Statements - 30-


Increased by:Interest EarnedPremium on Sale of Bonds



SEWER UTILITY CAPITAL FUNDSTATEMENT OF CHANGE IN FUND BALANCE

REGULATORY BASISFOR THE YEAR ENDED DECEMBER 31,2011

E

E-5E-12

2,117.5320,321.40

E


- 31-

Exhibit - E-2

$1,063.66

22,438.93

$23,502.59

Exhibit - E-3


SEWER UTILITY OPERATING FUNDSTATEMENT OF REVENUES - REGULATORY BASIS


2011 REALIZED EXCESS ORREF. BUDGET IN 2011 (DEFICIT)

Fund Balance Anticipated E-1 $ 2,043,246.00 $ 2,043,246.00 $Sewer Rents E-1 11,150,040.13 11,934,971. 71 784,931.58Miscellaneous E-l 100,349.41 100,349.41

$ 13,193,286.13 $ 14,078,567.12 $ 885,280.99

REF. E-4

ANALYSIS OF REALIZED REVENUES Ref.

Sewer Rents:Sewer Rents Receivable:2011 Cash Collections:Collector E-7 11,886,416.19Sewer Rent Liens E-8 1,634.11Sewer Rent Overpayments Applied E-7 46,921.41

E-3 $ 11,934,971.71

Miscellaneous Revenues:Interest & Costs on RentsSewer Connection FeesMisc. Revenues

E-5E-5E-5

56,170.9923,148.6421,029.78

E-3 $ ===10=0:f:,3:::4:i::9=.4i::1


- 32-

Operating:Salaries and WagesOther ExpensesMiddlesex County Utilities Authority Charges

Capital Improvements:Capital Improvement Projects

Debt Service:Payment of Bond PrincipalInterest on BondsInterest on NotesMCIA Lease Purchase Payments

CN Deferred Charges and Statutory Expenditures:CN Statutory Expenditures:

Contribution to:Public Employees Retirement SystemSocial Security System (O.A.S.I.)Unemployment Compensation Insurance

DisbursedAccrued Interest on Bonds


Exhibit - E-4TOWNSHIP OF EDISON


SEWER UTILITY OPERATING FUNDSTATEMENT OF EXPENDITURES - REGULATORY BASIS


EXPENDED UNEXPENDEDBALANCE OVER-

CANCELLED EXPENDITURE2011

BUDGETBUDGET AFTERMODIFICATION

PAID ORCHARGED ENCUMBERED RESERVED

$ 1,825,000.00 $ 1,825,000.00 $ 1,526,348.92 $ $ 298,651.08 $3,400,000.00 3,400,000.00 3,297,408.95 77,399.15 25,191.907,097,034.00 7,097,034.00 7,097,034.00

185,000.00 185,000.00 100,000.00 85,000.00

45,000.00 45,000.00 45,000.0092,617.00 92,617.00 92,617.0029,200.00 29,200.00 45,795.31 16,595.31132,443.13 132,443.13 132,443.13

242,677.00 242,677.00 242,677.00132,315.00 132,315.00 58,935.44 73,379.5612,000.00 12000.00 12,000.00

$ 13,193,286.13 $ 13,193,286.13 $ 12,650,259.75 $ 162,399.15 $ 397,222.54 $ 16,595.31

Ref E-3 E-3 E-l E-I, E-14 E, E-I E, E-I

E-5 $ 12,511,847.44E-20 138,412.31

$ 12,650,259.75

Exhibit - F


PUBLIC ASSISTANCE FUNDCOMPARATIVE BALANCE SHEET - REGULATORY BASIS

DECEMBER 31, 2011 AND DECEMBER 31, 2010

BALANCE BALANCEDEC. 31, DEC. 31,

ASSETS REF. 2011 2010

Cash and Invest. - Treasurer F-1 $ 42,915.16 $ 42,749.73

$ 42,915.16 $ 42,749.73

LIABILITIES AND RESERVES

Reserve for Public Assistance F-4 $

$

42,915.16 $ _~4..::.;2,:..;_74...;,;;9....;".7;,.;;,3_

42,915.16 $ =====4=2,=74::9:::::,.7=3=


- 34-


STATEMENT OF GOVERNMENTAL FIXED ASSETSREGULATORY BASISDECEMBER 31, 2011

Governmental Fixed Assets:LandBuildings and ImprovementsVehicles, Machinery and Equipment

Total Governmental Fixed Assets

Investment in Governmental Fixed Assets

Nots: See Notes to Financial Statements

- 35-

Exhibit - G

BALANCEDECEMBER 31,

2011

$ 111,130,700.0018,656,800.0038,620,473.00

$ 168,407,973.00

$ 168,407,973.00


NOTES TO FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011

Note 1: FORM OF GOVERNMENT

The Township is managed under the Mayor - Council form of government authorized under Plan E of the"Faulkner Act of 1950". This form of government, adopted in 1957 by Township voters, provides for thedirect election of the Mayor and seven council members for staggered four-year terms. This form ofgovernment provides for the administrative function of government under the Mayor, supported by aBusiness Administrator and various department heads, and for the legislative function under the MunicipalCouncil.

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

Except as noted below, the basic financial statements of the Township of Edison include every board, body,officer or commission supported and maintained wholly or in part by funds appropriated by the Township ofEdison, as required by NJ.S.A. 40A:5-5. Accordingly, the basic financial statements the Township ofEdison do not include the operations of the municipal library, first aid organizations or volunteer firecompanies.

B. Description of Funds

The accounting policies of the Township of Edison conform to the accounting principles applicable tomunicipalities, which have been prescribed by the Division of Local Government Services, Department ofCommunity Affairs, State of New Jersey. Such principles and practices are designed primarily fordetermining compliance with legal provisions and budgetary restrictions and as a means of reporting on thestewardship of public officials with respect to public funds. Under this method of accounting, the Townshipof Edison accounts for its financial transactions through the following separate funds:

Current Fund - resources and expenditures for governmental operations of a general nature, includingFederal and State grant funds, except as otherwise noted.

Trust Fund - receipts, custodianship and disbursement of funds in accordance with the purpose for whicheach reserve was created. Pursuant to the provisions of NJ.S.A. 40A:4-39, the financial transactions of theHousing and Community Development Act of 1974 funds are reported within the Trust Fund. In addition,the financial transactions of the following funds and accounts are also reported within the Trust Fund:

Animal Control Trust FundLandfill Closure Escrow FundsUnemployment Compensation Trust FundDedicated Law Enforcement Trust FundSelf-Insurance Trust FundDeveloper Escrow Trust FundsDedicated Open Space Fund

- 36-

NOTES TO FINANCIAL STATEMENTS

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D):

B. Description of Funds (Cont'd.)

General Capital Fund - resources, including Federal and State Grants in aid of construction, andexpenditures for the acquisition of general capital facilities, other than those acquired through the CurrentFund, including the status of bonds and notes authorized for said purposes. Debt obligations authorized inconjunction with the Township's conversion to the state's fiscal year are also accounted for in the GeneralCapital Fund.

Water Utility Fund - resources and expenditures for the operations and acquisition of capital facilities of themunicipally owned Water Utility. See Note 13 for information relating to the privatization of water deliveryservices for periods commencing after June 30, 1997.

Sewer Utility Fund - resources and expenditures for the operations and acquisition of capital facilities of themunicipally owned Sewer Utility.

Public Assistance Fund - receipt and disbursement of funds that provide assistance to certain residents of theTownship pursuant to Title 44 of New Jersey Statutes.

The Governmental Accounting Standards Board (GASB) is the accepted standards-setting body forestablishing governmental accounting and financial reporting principles. GASB's Codification ofGovernmental Accounting and Financial Reporting Standards recognizes three fund categories asappropriate for the accounting and reporting of the financial position and results of operations in accordancewith generally accepted accounting principles (GAAP) to provide detailed information about thegovernmental unit. This structure of funds differs from the organization of funds prescribed under theregulatory basis of accounting utilized by the Township. The resultant presentation of financial position andresults of operations in the form of basic financial statements is not intended to present the general purposefinancial statements required by GAAP.

The regulatory basis of accounting utilized by the Township for financial reporting is inconsistent with theprovisions and standards established by Statement 34 of the GASB. Accordingly, the Township has notimplemented the provisions of GASB Statement 34.

C. Basis of Accounting

Basis of Accounting and Measurement Focus - The basis of accounting as prescribed by the Division ofLocal Government Services for its operating funds is generally a modified cash basis for revenue recognitionand a modified accrual basis for expenditures. The operating funds utilize a "current financial resources"measurement focus. The accounting principles and practices prescribed for municipalities by the Divisiondiffer in certain respects from generally accepted accounting principles (GAAP) applicable to localgovernment units. The most significant is the reporting of entity-wide financial statements, which are notpresented in the accounting principles prescribed by the Division. The other more significant differences areas follows:

Revenues - Revenues are recorded as received in cash except for regulatory reimbursements and grant funds,which are due from other governmental units. State and Federal grants, entitlements and shared revenuesreceived for operating purposes are realized as revenues when anticipated in the Township budget.Receivables for property taxes, water utility consumer charges and sewer utility consumer charges arerecorded with offsetting reserves within the Current Fund, Water Utility Fund and Sewer Utility Fund,respectively. Other amounts that are due to the Township, which are susceptible to accrual are recorded asreceivables with offsetting reserves. These reserves are liquidated and revenues are recorded as realizedupon receipt of cash. GAAP requires the recognition of revenues for general operations in the accountingperiod in which they become available and measurable, with the exception of utility consumer charges,which should be recognized in the period they are earned and become measurable.

- 37-



C. Basis of Accounting (Cont'd.)

Expenditures - For purposes of financial reporting, expenditures are recorded as "paid or charged" or"appropriation reserves". Paid or charged refers to the Township's "budgetary" basis of accounting.Generally, these expenditures are recorded when an amount is encumbered for goods or services through theissuance of a purchase order in conjunction with the encumbrance accounting system. Reserves forunliquidated encumbrances at the close of the year are reported as a cash liability. Encumbrances do notconstitute expenditures under GAAP. Appropriation reserves refer to unexpended appropriation balances atthe close of the year. Appropriation reserves are automatically created and recorded as a cash liability,except for amounts, which may be cancelled by the governing body. Appropriation reserves are availableuntil lapsed at the close of the succeeding year, to meet specific claims, commitments or contracts incurredand not recorded in the preceding fiscal year. Lapsed appropriation reserves are recorded as income.Generally, unexpended balances of budget appropriations are not recorded as expenditures under GAAP.Expenditures for compensated absences, i.e. accumulations of earned but unused vacations and sick leave,are recorded in the accounting period in which the payments are made. GAAP requires that expenditures berecorded in the governmental (Current) fund in an amount that would normally be liquidated with availablefinancial resources, and that expenditures be recorded in the enterprise (Water Utility and Sewer Utility)fund on a full accrual basis.

For the purposes of calculating the results of Current Fund operations, the regulatory basis of accountingutilized by the Township requires that certain expenditures be deferred and raised as items of appropriationin budgets of succeeding years. These deferred charges include the two general categories ofoverexpenditures and emergency appropriations. Overexpenditures occur when expenditures recorded as"paid or charged" exceed available appropriation balances. Emergency appropriations occur when,subsequent to the adoption of a balanced budget, the governing body authorizes the establishment ofadditional appropriations based on unforeseen circumstances or for other special purposes as defined bystatute. Overexpenditures and emergency appropriations are deducted from total expenditures in thecalculation of operating results and are established as assets for Deferred Charges on the Current Fundbalance sheet. GAAP does not permit the deferral of overexpenditures to succeeding budgets. In addition,GAAP does not recognize expenditures based upon the authorization of an appropriation. Instead, theauthorization of special purpose expenditures, such as the preparation of tax maps or the revaluation ofassessable real property, would represent the designation of fund balance.

The Local Budget Law (NJ.S.A. 40A:4-l et seq.) requires that certain operating transfers between funds,such as transfers from the Current Fund and Utility Operating Funds to a Self-Insurance Trust Fund,transfers of anticipated operating surpluses among the Current Fund, Water Utility Fund and Sewer UtilityFund, transfers from utility operating funds to capital funds (to finance capital projects) and transfers fromthe Current Fund to the Trust Funds or General Capital Fund are required to be included in the Township'sannual budgets as budget appropriations. Expenditures are recorded upon the adoption of the budget for anylegally required transfers, and upon the determination of availability of funds for any discretionary transfers.Under GAAP, operating transfers are not recognized as expenditures.

- 38-




Property Acquired for Taxes - Foreclosed property is recorded in the Current Fund at the assessed valuationwhen such property was acquired and is fully reserved. GAAP requires such property to be recorded ingovernmental fixed assets at the lower of cost or fair market value.

Self Insurance Reserves - Charges to self insurance reserves are recorded when payments of claims andrelated expenses are made. Increases to self insurance reserves are recorded from budgetary appropriationsin the accounting period in which budgetary expenditures are recorded. Earnings on investments andmiscellaneous reimbursements are credited to reserves when received in cash. GAAP requires that liabilitiesfor incurred claims be recorded as determined actuarially, and that operating transfers to self insurance fundsnot exceed the amount determined.

Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves, which arecreated by charges to operations. Income is recognized in the accounting period the receivables areliquidated. GAAP does not require the establishment of an offsetting reserve.

Inventories of Supplies - The cost of inventories of supplies for all funds are recorded as expenditures at thetime, individual items are purchased. The cost of inventories are not included on the various balance sheets.Although the expenditure method of accounting for purchases of supplies is in accordance with GAAP, thecost of inventory on hand at the close of the year should be reported on the balance sheet with an offsettingreserve for conformity with GAAP.

Sale of Municipal Assets - Cash proceeds from the sale of Township owned property may be realized asrevenue or reserved until utilized as an item of revenue in a subsequent year budget. Any year end balancesof reserved proceeds are reported as a cash liability in the Current Fund. At December 31, 2011, theTownship had no reserved proceeds. GAAP requires that revenue be recognized in the accounting periodthat the terms of the sales contracts become legally enforceable.

Defeasance of Utility Debt - The funding by a third party of an irrevocable trust fund established for thepurpose of debt defeasance pursuant to an agreement under the provisions of the New Jersey Water SupplyPublic-Private Contracting Act (NJSA 58:26-19 et seq.) is recorded as an increase to the Reserve forAmortization account. GAAP requires recognition of this funding arrangement as a deferred item, whichwould be amortized following the maturity schedule of the bonds.

Governmental Fixed Assets - Property and equipment acquired by the Current, Community DevelopmentBlock Grant and General Capital Funds are recorded as expenditures at the time of purchase and are notcapitalized. Property and equipment acquired by the Water Utility Fund and Sewer Utility Fund arerecorded in their respective capital accounts at cost and are adjusted for dispositions and abandonments.Contributions in aid of construction are not capitalized. The balances in the Reserve for Amortization andDeferred Reserve for Amortization accounts in the Water Utility Capital Fund and Sewer Utility CapitalFund represent charges to operations for the costs of acquisitions of property, equipment and improvementsplus any costs funded from sources other than bonded debt of the utility. The utility does not recorddepreciation on fixed assets. GAAP does not require the establishment of a reserve for amortization forutility fixed assets, but does require the recognition of depreciation of these assets as an operating expense ofthe utility.

- 39-




Recent Accounting Standards

GASB issued Statement No. 59, "Financial Instruments Omnibus" in June 2010. The objective of thisStatement is to update and improve existing standards regarding financial reporting and disclosurerequirements of certain financial instruments and external investment pools for which significant issues havebeen identified in practice.

GASB issued Statement No. 60, "Accounting and Financial Reporting for Service ConcessionArrangements" in November 2010. The objective of this Statement is to improve financial reporting byaddressing issues related to service concession arrangements (SCAs), which are a type of public-private orpublic-public partnership. As used in this Statement, an SCA is an arrangement between a transferor (agovernment) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveysto an operator the right and related obligation to provide services through the use of infrastructure or anotherpublic asset (a "facility") in exchange for significant consideration and (2) the operator collects and iscompensated by fees from third parties.

GASB issued Statement No. 61, "The Financial Reporting Entity: Omnibus-an amendment of GASBStatements No. 14 and No. 34" in November 2010. The objective of this Statement is to improve financialreporting for a governmental financial reporting entity. The requirements of Statement No. 14, TheFinancial Reporting Entity, and the related financial reporting requirements of Statement No. 34, BasicFinancial Statements-and Management's Discussion and Analysis-for State and Local Governments,were amended to better meet user needs and to address reporting entity issues that have arisen since theissuance of those Statements.

GASB issued Statement No. 62, "Codification of Accounting and Financial Reporting Guidance Containedin Pre-November 30,1989 FASB and AICPA Pronouncements" in December 2010. The objective of thisStatement is to incorporate into the GASB' s authoritative literature certain accounting and financialreporting guidance that is included in the following pronouncements issued on or before November 30,1989, which does not conflict with or contradict GASB pronouncements:

1. Financial Accounting Standards Board (FASB) Statements and Interpretations2. Accounting Principles Board Opinions3. Accounting Research Bulletins of the American Institute of Certified Public Accountants'

(AICPA) Committee on Accounting Procedure.

GASB issued Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflowsof Resources, and Net Position" in June 2011. The requirements of this Statement will improve financialreporting by standardizing the presentation of deferred outflows of resources and deferred inflows ofresources and their effects on a government's net position. It alleviates uncertainty about reporting thosefinancial statement elements by providing guidance where none previously existed.

GASB issued Statement No. 64, "Derivative Instruments: Application of Hedge Accounting TerminationProvisions-an amendment of GASB Statement No. 53" in June 2011. The objective of this Statement is toclarify whether an effective hedging relationship continues after the replacement of swap counterparty orswap counterparty's credit support provider. This Statement sets forth criteria that establish when theeffective hedging relationship continues and hedge accounting should continue to be applied.

The Township does not prepare its financial statements in accordance with generally accepted accountingprinciples. Unless these new standards are incorporated into the other comprehensive basis of accountingthat is utilized by the Township through legislation or rulemaking they will not become part of the standardsfollowed by the Township for financial reporting. The Division of Local Government Services has adoptedrules which require full disclosure in the Notes to Financial Statements of OPEB related matters, as set forthin GASB Statement No. 45, based upon the GASB implementation schedule. See Note 17 for a descriptionof matters relating to GASB 45.

- 40-


Note 3: DEFERRED COMPENSATION PLAN

The Edison Township Deferred Compensation Plan was established pursuant to Section 457 of the InternalRevenue Code and P.L. 1977, C. 381; P.L. 1978,C. 39; and P.L. 1980, C. 78 of the Statutes of New Jersey.The Plan is an arrangement whereby a public employer may establish a plan and permit its employees tovoluntarily authorize a portion of their current salary to be withheld and invested in one or more of the typesof investments permitted under the governing regulations. The Township has engaged a private contractorto administer the plan.

The Township passed a resolution on October 8,1997 amending its plan in accordance with the amendmentsto Section 457 of the Code included in the Small Business Job Protection Act of 1996. This legislationeliminated provisions of the law that required compensation, which was deferred under the plan to remainthe assets of the employer. The Plan amendment specifies that Plan assets are to be held "for the exclusivebenefit of Plan participants and their beneficiaries". Accordingly, the financial statements of the Plan are notincluded in the Township's financial statements for the year ending December 31,2011.

- 41-


Note 4: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION

A. Summary of Municipal Debt for Capital Projects

CY2011 CY 2010

Issued:General:Bonds & Notes $ 63,731,388.86 $ 68,794,364.08

N.J.D.E.P. GreenTrust Loans 1,783,209.45 1,998,535.58Type I School Debt:Bonds & Notes 1,095,000.00

Water Utility:Bonds & Notes 963,515.00 963,515.00

Sewer Utility:Bonds & Notes 5,956,500.00 6,001,500.00

Total Debt Issued 72,434,613.31 78,852,914.66

Authorized but not Issued:General:Bonds & Notes 9,080,643.57 1,720,643.57

Sewer Utility:Bonds & Notes 742,450.00 742,450.00

Total Authorized butnot Issued 9,823,093.57 2,463,093.57

Net Bonds & Notes Issuedand Authorized but notIssued $ 82,257,706.88 $ 81,316,008.23

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Note 4: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)

A. Summary of Municipal Debt for Capital Projects (Cont'd.)

Summarized below are the Township'S individual bond and loan issues which wereoutstanding at December 31, 2011:

Amount Amount Interest FinalIssued Outstanding Rates Maturity

General Improvement Debt

Genl. Improv. Bonds - 2002 $29,450,000.00 $1,800,000.00 4.500% 2012Genl. Improv. Bonds - 2003 10,000,000.00 9,610,000.00 Various 2023Genl. Oligation Bonds - 2007 29,675,500.00 26,220,500.00 4.125% 2022Genl. 0ligation Refunding Bonds - 2011 16,540,000.00 16,540,000.00 Various 2022Green Trust Program Loans 3,026,250.00 1,783,209.45 2.00% 2022NJ Environmental Infrastructure 1,211,111.00 810,000.00 Various 2022NJ Environmental Infrastructure 1,211,111.00 693,186.26 None 2022NJ Environmental Infrastructure 450,000.00 385,000.00 Various 2027NJ Environmental Infrastructure 441,780.10 341,217.60 None 2027Bond Anticipation Notes 6,280,000.00 6,280,000.00 1.25% 2012Bond Anticipation Notes 1,051,485.00 1,051,485.00 1.50% 2012

Water Utility Debt

Bond Anticipation Notes 963,515.00 963,515.00 1.50% 2012

Sewer Utility Debt

Sewer Utility Bonds - 2007 2,266,500.00 2,176,500.00 Various 2037Bond Anticipation Notes 2,580,000.00 2,580,000.00 1.25% 2012Bond Anticipation Notes 1,200,000.00 1,200,000.00 1.50% 2012

Total Debt for Capital ProjectOutstanding December 31, 2011 $72,434,613.31

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A. Summary of Municipal Debt for Capital Projects (Cont'd.)

Summarized below are the Township's individual bond and loan issues which wereoutstanding at December 31,2010:

Amount Amount Interest FinalIssued Outstanding Rates Maturity

General Improvement Debt

Genl. Improv. Bonds - 2002 $29,450,000.00 $21,350,000.00 Various 2022Genl. Improv. Bonds - 2003 10,000,000.00 9,710,000.00 Various 2023Genl. Oligation Bonds - 2007 29,675,500.00 28,010,500.00 4.125% 2022Green Trust Program Loans 3,026,250.00 1,998,535.58 2.00% 2022NJ Environmental Infrastructure 1,211,111.00 865,000.00 Various 2022NJ Environmental Infrastructure 1,211,111.00 756,770.48 None 2022NJ Environmental Infrastructure 450,000.00 405,000.00 Various 2027NJ Environmental Infrastructure 441,780.10 365,608.60 None 2027Bond Anticipation Notes 6,280,000.00 6,280,000.00 1.00% 2011Bond Anticipation Notes 1,051,485.00 1,051,485.00 1.50% 2011

Type I School Debt

School Bonds - 1991 20,095,000.00 1,095,000.00 6.50% 2011

Water Utility Debt

Bond Anticipation Notes 963,515.00 963,515.00 1.50% 2011

Sewer Utility Debt

Sewer Utility Bonds - 2007 2,266,500.00 2,221,500.00 Various 2037Bond Anticipation Notes 2,580,000.00 2,580,000.00 1.00% 2011Bond Anticipation Notes 1,200,000.00 1,200,000.00 1.50% 2011

Total Debt for Capital ProjectOutstanding December 31, 2010 $78,852,914.66

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B. Summary of Statutory Debt Condition - Annual Debt Statements - CY 2011

The summarized statement of debt condition which follows is reported in accordance with therequired method for preparation of the Annual Debt Statement and indicates a statutory netdebt of:

Gross Debt Deductions Net Debt

Local School DistrictDebt (1) $8,970,000.00 $8,970,000.00 $

Water Utility Debt 963,515.00 963,515.00Sewer Utility Debt 6,698,950.00 6,698,950.00General Debt 74,595,241.88 2,633,338.57 71,961,903.31

$91,227,706.88 $19,265,803.57 $71,961,903.31

Net Debt $73,961,903.31 Divided by Equalized Valuation Basis perN.J.S.A. 40A:2-2 as amended $15,558,406,914.67 = 0.46 %.

EQUALIZED VALUATION BASIS

2009 Equalized Valuation Basis of Real Property2010 Equalized Valuation Basis of Real Property2011 Equalized Valuation Basis of Real Property

$16,107,145,526.0015,721,206,852.0014,846,868,366.00

Average Equalized Valuation $15,558,406,914.67

BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED

3 112% of Equalized Valuation Basis MunicipalNet Debt

$544,544,242.0171,961,903.31

Remaining Borrowing Power $472,582,338.70

(1) Includes $8,970,000 of Type II School Bonds issued directly by the Board of Education. SchoolDebt does not include the unpaid principal balance of lease obligations for school district capitalprojects.

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B. Summary of Statutory Debt Condition - Annual Debt Statements - CY 2010

The summarized statement of debt condition which follows is reported in accordance with therequired method for preparation of the Annual Debt Statement and indicates a statutory netdebt of:

Gross Debt Deductions Net Debt

Local School DistrictDebt (1) $11,012,000.00 $11,012,000.00 $

Water Utility Debt 963,515.00 963,515.00Sewer Utility Debt 6,743,950.00 6,743,950.00General Debt 72,513,543.23 2,545,698.57 69,967,844.66

$91,233,008.23 $21,265,163.57 $69,967,844.66

Net Debt $69,967,844.66 Divided by Equalized Valuation Basis perN.J.S.A. 40A:2-2 as amended $15,966,228,109.33 = 0.44 %.

EQUALIZED VALUATION BASIS

2008 Equalized Valuation Basis of Real Property2009 Equalized Valuation Basis of Real Property2010 Equalized Valuation Basis of Real Property

$16,070,331,950.0016,107,145,526.0015,721,206,852.00

Average Equalized Valuation $15,966,228,109.33

BORROWING POWER UNDER NJ.S.A. 40A:2-6 AS AMENDED

3 112% of Equalized Valuation Basis MunicipalNet Debt

$558,817,983.8369,967,844.66

Remaining Borrowing Power $488,850,139.17

(1) Includes Type I School Debt issued by Township and oustanding at December 31, 2010 in theamount of$I,095,000 plus $9,917,000 of Type II School Bonds issued directly by theBoard of Education. School Debt does not include the unpaid principal balance of leaseobligations for school district capital projects.

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B. Summary of Statutory Debt Condition - Annual Debt Statements

Green Trust Program Loans (Cont'd.)

Woodland_AvePark II

Date of Loan AgreementLoan AmountInterest RateSemi-Annual Payment (Prin. & Int.)

to Amortize Loan PrincipalDue DatesNumber of PaymentsFinal Payment

July 11, 2003$712,500.00

2.00%

$44,305.52July 11& Jan. 11

39July 11,2022

Woodland AvePark I

Date of Loan AgreementLoan AmountInterest RateSemi-Annual Payment (Prin. & Int.)

to Amortize Loan PrincipalDue DatesNumber of PaymentsFinal Payment

October 26, 2007$1,230,000.00

2.00%

$124,297.10Oct 26 & Apr 26

22April 26, 2018

Woodland Grove

August 10, 2003$281,250.00

2.00%

$20,096.75Aug. 10 & Feb. 10

33February 10,2019

Mill Road Park

October 26, 2007$802,500.00

2.00%

$65,526.27Oct 26 & Apr 26

24April 26, 2019

Pursuant to the provisions ofN.J.S.A. 40A:2-1 et seq. the combined outstanding principal ofthese loans, in the amount of$I,783,209.45 has been included in the calculation of theTownship's statutory debt condition.

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Note 4: DEBT, DEBT SERVICE AND REGULATORY DEBT CONDITION (CONT'D.)

B. Summary of Regulatory Debt Condition - Annual Debt Statements (Cont'd.)

Deduction of Self-Liquidating Utility Debt for Regulatory Net Debt (NJ.SA. 40:2-45)

The calculation of "Self-Liquidating Purpose" for the Sewer Utility, per N.J.S.A. 40A:2-45 is as follows:

Cash Receipts from Fees, Rents or OtherCharges for Year $14,078,567.12

Deductions:Operating and Maintenance Costs 13,209,881.44

$868,685.68Excess in Revenues

The difference between the excess in revenues for debt statement purposes and the excess in revenues on acash basis for the Sewer Utility Fund is as follows:

Excess in Revenues - Cash Basis (E-l)

Add: Refund of Prior Year Revenue

$1,495,004.90

982.50

1,495,987.40

Deduct: Reserves CancelledAccounts Payable Cancelled

627,281.7220.00

Excess in Revenues per Debt Statement

627,301.72

$868,685.68

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B. Summary of Regulatory Debt Condition - Annual Debt Statements (Cont'd.)

Cash Receipts from Fees, Rents or OtherCharges for Year $14,378,466.01

Deductions:Operating and Maintenance Costs ] 3,176,763.20

$1,201,702.81Excess in Revenues

The difference between the excess in revenues for debt statement purposes and the excess in revenues on acash basis for the Sewer Utility Fund is as follows:

Excess in Revenues - Cash Basis (E-l)

Add: Refund of Prior Year Revenue

$2,022,381.86

102,298.71

2,124,680.57

Deduct: Reserves CancelledAccounts Payable Cancelled

915,029.917,947.85

Excess in Revenues per Debt Statement

922,977.76

$1201.702.8]

C. Schedule of Annual Debt Service for Principal and Interest for theNext Five Years for Bonded Debt Issued and Outstanding

General (1)Year Principal Interest Total

2012 $4,059,654 $2,387,668 $6,447,3222013 4,184,069 2,155,606 6,339,6752014 4,323,573 2,002,527 6,326,1002015 4,478,167 1,841,104 6,319,2712016 4,797,854 1,660,392 6,458,2462017-2021 26,531,242 4,961,133 31,492,3752022-2023 7,579,]50 267,143 7,846,293

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C. Schedule of Annual Debt Service for Principal and Interest for theNext Five Years for Bonded Debt Issued and Outstanding for the Sewer Utility

Year PrinciQal Interest Total

2012 $50,000 $90,658 $140,6582013 50,000 88,595 138,5952014 50,000 86,532 136,5322015 55,000 84,367 139,3672016 55,000 82,098 137,0982017-2021 320,000 372,850 692,8502022-2026 385,000 299,794 684,7942027-2031 480,000 208,144 688,1442032-2036 600,000 93,819 693,8192037 131,500 2,794 134,294

C. Schedule of Annual Debt Service for Principal and Interest for theNew Jersey Environmental Infrastructure Trust Loan at December 31, 2011

State Trust TrustYear PrinciQal PrinciQal Interest Total

2012 $85,555.32 $75,000.00 $57,593.75 $218,149.072013 86,368.79 80,000.00 53,843.75 220,212.542014 86,923.59 85,000.00 49,693.75 221,617.342015 84,075.25 85,000.00 45,443.75 214,519.002016 84,565.37 90,000.00 41,031.25 215,596.622017-2021 426,009.19 525,000.00 135,156.25 1,086,165.442022-2026 180,906.35 255,000.00 26,187.50 462,093.85

(1) Prior to the establishment of a separate Sewer Utility, the Township financed sewer infrastructureimprovements through the issuance of General Debt. All such debt is included above. However, annual debtservice on sewer improvements is raised in the Annual Budget of the Dedicated Sewer Utility. The aboveincludes the principal of, and interest on Green Trust Program Loans.

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Note 5: FUND BALANCES APPROPRIATED

Fund balances at December 31, 2011 and 2010 were appropriated and included as anticipated revenue intheir own respective funds for the year ending December 31, 2011 and 2010 as follows:

FUND BALANCEDECEMBER 31,2011

UTILIZED INSUCCEEDING BUDGET

Current FundSewer Utility Fund

$11,747,729.834,436,941.48

$8,309,881.103,650,156.54

FUND BALANCEDECEMBER 31,2010

UTILIZED INSUCCEEDING BUDGET

Current FundSewer Utility Fund

$13,250,969.434,968,587.27

$9,889,276.832,043,246.00

Note 6: DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS

Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, 2011 and2010 the following deferred charges are shown on the balance sheets of the various funds:

BALANCE AMOUNT AMOUNT BALANCEDECEMBER RAISED RESULTING DECEMBER

31, 2010 IN 2011 FROM 2011 31, 2011

Current Fund:Special Emergency Authorization $ 0.00 $ 0.00 $ 1,270,000.00 $ 1,270,000.00Overexpenditure of Appropriation 829,052.76 829,052.76 0.00 0.00

$829.052.76 $829.052.76 $1.270 .000 .00 $1.270.000.00

Water Utility Fund:Overexpenditure of Appropriation $4,817.58 $4,817.58 $4,817.58 $4,817.58

$4.817.59 $4,817.58 $4,817.58 $4,817.58

Sewer Utility Fund:Overexpenditure of Appropriation $0.00 $0.00 $16,595.31 $16,595.31

$0.00 $0.00 $16595.31 $16595.31

BALANCE AMOUNT AMOUNT BALANCEDECEMBER RAISED RESULTING DECEMBER

31, 2009 IN 2010 FROM 2010 31, 2010

Current Fund:Emergency Authorization $677,000.00 $677,000.00Overexpenditure of Appropriation 313,979.57 313,979.57 $829 ,052,76 $829 ,052.76

$990,979.57 $990,979.57 $829,052.76 $822,052.76

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Note 7: DEPOSITS AND INVESTMENTS

Deposits


New Jersey statutes permit the deposit of public funds in institutions located in New Jersey which areinsured by the Federal Deposit Insurance Corporation (FDIC) or by any other agencies of the United Statesthat insures deposits or the State of New Jersey Cash Management Fund. New Jersey statutes require publicdepositories to maintain collateral for deposit of public funds that exceed insurance limits as follows:

The market value of the collateral must equal 5 percent of the average daily balance of public funds; or if thepublic funds deposited exceed 75 percent of the capital funds of the depository, the depository must providecollateral having a market value equal to 100 percent of the amount exceeding 75 percent.

All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or abanking institution that is a member of the Federal Reserve System and has capital funds of not less than$25,000,000. The State of New Jersey Cash Management Fund is authorized by statute and regulations ofthe State Investment Council to invest in fixed income and debt securities, which mature within one year.Collateralization of Fund investments is generally not required. "Other Than State" participants contributeone and one-half percent per year of the value of the aggregate units owned by them to establish a ReserveFund, which is supplemented by the proportional interest of "Other Than State" participants in gains oninvestment transactions realized. The Reserve Fund is available to cover losses of "Other Than State"participants occasioned by the bankruptcy of an issuer of an investment held by the Fund and losses on salesof securities.

At December 31,2011 and 2010, the cash and cash equivalents and investments of the Township consistedof the following:

Cash (Demand Accts.)Change Funds (On-Hand)State of N.J. Cash Mgmt. FundUS Treasury/Agency ObligationsCertificates of DepositMoney Market Funds

2011

$78,091,769.60675.00

130,165.5915,046,969.05

201,423.365,330,740.55

$98.801.743.15Total

2010

$69,953,595.24475.00

130,024.5614,617,264.02

200,000.005,075,017.35

$89.976,376.17

During the period ended December 31, 2011 and 2010, the Township held investments in Certificates ofDeposit and the State of New Jersey Cash Management Fund. Under criteria established in GovernmentalAccounting Standards Board Statement No.9, the year-end balances in Certificates of Deposit, New JerseyCash Management Fund and the New Jersey Proceeds Management Fund are considered to be cashequivalents under GAAP.

Investments

New Jersey Statutes establish the following securities as eligible for the investment of Township funds:

1. Bonds or other obligations of the United States of America or obligations guaranteed by the UnitedStates;

2. Government money market mutual funds;

3. Any obligation that a federal agency or a federal instrumentality has issued in accordance with anact of Congress, which security has a maturity date not greater than 397 days from the date ofpurchase, provided such obligation bear a fixed rate of interest not dependent on any index or otherexternal factor;

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Note 7: DEPOSITS AND INVESTMENTS (CONT'D.)

Investments (Cont'd.)

4. Bonds or other obligations of the Township or bonds or other obligations of school districts of whichthe Township is a part and within which the school district is located.

5. Bonds or other obligations having a maturity date of not more than 397 days from the date ofpurchase that are approved by the Division of Investment of the Department of Treasury forinvestment by local units;

6. Local government investment pools;

7. Deposits with the State of New Jersey Cash Management Fund established pursuant to section 1 ofP.L. 1997, 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);b. the custody of collateral is transferred to a third party;c. the maturity of the agreement is not more than 30 days; andd. the underlying securities are purchased through a public depository as defined in section 1 of P.L.1970, c.236 (C.19:9-41) and for which a master repurchase agreement providing for the custody andsecurity of the collateral is executed.

Governmental Accounting Standards Board Statement No. 40 - Deposit and Investment Risk Disclosuresrequires the Township to disclose its deposits and investment policies regarding certain type of investmentrisks.

Moody's S&PInvestment Type Rating Rating

Federal National Mortgage Assoc. AAA AAAFederal Home Loan Mortgage AAA AAAFederal Home Loan Bank AAA AAAU.S. Treasury Notes AAA AAA

Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, theTownship's deposits may not be returned to it. The government does not have a deposit policy for custodialcredit risk. As of December 31, 2011, based upon the insured balances as provided by FDIC and NJGUDPAcoverage, none of the Township's bank balance of $100,060,092.31 was considered exposed to custodialrisk.

The Township's investments at year-end 2011 were as follow:

Investment Maturities (in Years)Investment Type Total Fair Less than

Value 1 1-5 6-10

U.S. Treasury Bills $9,924,936.76 $810,209.76 $ 5,041,820.12 $4,072,906.88Private Export Funding 224,137.15 0.00 224,137.15 0.00FFCB 1,263,105.65 664,594.40 598,511.25 0.00FNMA 1,517,509.52 0.00 1,517,509.52 0.00FHLB 653,837.61 0.00 504,034.40 149,803.21FHLM 1,208,165.17 104,956.95 1,103208.22 0.00NCUA Guaranteed Notes 69,902.70 0.00 69,902.70 0.00FAGO 185,618.24 185,618.24 0.00 0.00

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Note 7: DEPOSITS AND INVESTMENTS (CONT'D.)

Investments (Cont'd.)

The Township of Edison had the following depository accounts. All deposits are carried at cost plus accruedinterest. The government does not have a deposit policy.

Depository Account Bank Balance

Insured--FDICInsured-NJGUDPA (N.J.S.A. 17:941)

$ 2,499,369.4197,560,722.90

Total $ 100.060.092.31

New Jersey Cash Management Fund - All investments in the Fund are governed by the regulations of theInvestment Council, which prescribe specific standards designed to insure the quality of investments and tominimize the risks related to investments. In all the years of the Division of Investment's existence, theDivision has never suffered a default of principal or interest on any short-term security held by it due to thebankruptcy of a securities issuer; nevertheless, the possibility always exists, and for this reason a reserve isbeing accumulated as additional protection for the "Other-than-State" participants. In addition to theCouncil regulations, the Division sets further standards for specific investments and monitors the credit of alleligible securities issuers on a regular basis. As of December 31,2011, the Township had $130,165.59 ondeposit with the New Jersey Cash Management Fund.

Note 8: ASSESSMENT AND COLLECTION OF PROPERTY TAXES

New Jersey statutes require that taxable valuation of real property be prepared by the Township Assessor asof October 1 in each year and filed with the County Board of Taxation by January 10 of the following year.Upon the filing of certified adopted budgets by the Township, Local School District, County and SpecialDistricts, the tax rate is struck by the board based on the certified amounts in each of the taxing districts forcollection to fund the budgets. Pursuant to statute, this process is to be completed on or before May 3, with acompleted duplicate of the tax rolls to be delivered to the Township Tax Collector on or before May 13th.

Tax bills are prepared and mailed by the Collector of Taxes of the Township annually and set forth the finaltax for the tax year. The bill contains a credit for preliminary amounts billed previously with the balancepayable in equal installments on August 1st and November 1st of the tax year. In addition, the propertyowner receives a preliminary bill for the succeeding year based on one half of the prior year's tax. Thepreliminary payments are due and payable on February 1st and May 1st. The New Jersey Statutes allow agrace period of 10 days for each payment period and the Township granted this option to taxpayers. Taxesbecome delinquent if not paid on the installment dates and become subject to interest penalties of 8% to 18%of the amount delinquent, and if a delinquency (including interest) is in excess of $10,000.00 and remains inarrears after December 31, an additional flat penalty of 6% shall be charged against the delinquency. If taxesare delinquent on or after April 1st of the succeeding year, the delinquent amount is subject to "Tax Sale"which places a tax lien on the property allowing the holder to enforce the tax lien by collection orforeclosure. New Jersey property tax laws establish a tax lien on real estate as of January 1st of the currenttax year even though the amount due is not known.

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Note 9: PENSION AND RETIREMENT PLANS

Employees of the Township of Edison are enrolled in one of two cost sharing multiple-employer publicemployee retirement systems: the Public Employees Retirement System (PERS) or the Police and Firemen'sRetirement System (PFRS). The retirement systems' provide coverage to substantially all full timeemployees of the Township. The Division of Pensions, in the Department of Treasury, State of New Jersey,administers the PERS and PFRS plans. The Plans are funded annually based upon the projected benefitmethod with aggregate level normal cost and frozen initial unfunded accrued liability. The Plans, whichcover public employees throughout the state, do not maintain separate records for each reporting unit and,accordingly, the actuarial data for employees of the Township who are members of the Plans are notavailable. The contributions for the years ended December 31, 2011 and 2010, exclusive of contributionsfrom employees were $9,971,522 and $8,643,908, respectively for PFRS, and $2,289,401 and $1,808,407,respectively for PERS. The contributions for PFRS and PERS for SFY 2012 are $8,437,434 and $2,367,951,respectively.

The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits issues publiclyavailable financial reports that include the financial statements and required supplementary information forPERS and PFRS. These financial reports may be obtained by writing to the State of New Jersey,Department of the Treasury, Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ 08625-0295.

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Note 10: RISK MANAGEMENT

A. Liability and Workers Compensation

The Township, together with the neighboring Townships of Woodbridge and Piscataway, formed the CentralJersey Joint Insurance Fund (CJJIF), effective July 1,1998. During the most recent Fund Year, participantsin the CJJIF also included the Township of Franklin and Hillsborough, each of Somerset County, theTownships of Old Bridge and East Brunswick, both of Middlesex County, and the Borough of Belmar,Monmouth County. This Fund provides for a pooling of self-retained risks of insurable losses, as well ascost effective excess and reinsurance coverages. As part of Fund's program, reinsurance coverage relatingto losses reported by the Township at June 30, 1998 was procured, and the Township will be required tocontribute $227,000 per year towards the ultimate cost of settlement of these claims. The Township hadpreviously operated a risk management program, which included significant self-insured risk retention, andhad established a Self-Insurance Trust Fund to account for this activity. Reserves available in the Self-Insurance Trust Fund may be utilized to make contributions towards the settlement of the residual claims orthe Township may redirect these funds to any other lawful purpose.

At December 31,2011, the CJJIF reported net unrestricted assets of $1,352,252.

Summary of Risk Management Program

The CJJIF provides the following coverages to its participants:

1. Workers' Compensation

The Fund covers $300,000 Combined Single Limit (CSL)The Municipal Excess Liability Joint Insurance Fund (MEL) covers excess claims to thefollowing limits:

Workers' Compensation - statutoryEmployers' Liability - $6,700,000 excess of the Fund's $300,000USL&H - Included in Workers' Compensation.Harbor Marine/Jones Act - Included in Employer's Liability.Incidental Foreign Workers Compensation - IncludedCommunicable Disease Coverage - IncludedVoluntary Workers Compensation - Included

2. General Liability

The Fund covers $300,000 CSLThe MEL covers excess claims to the following limits:

General Liability $4,700,000 CSL excess of the Funds' $300,000. The $3,500,000excess of $1,500,000 layer is subject to a $3,500,000 per member local unitannual aggregate limit.

Police Professional- Included in MEL excess General Liability limits.Employee Benefits Liability - Included in MEL excess General Liability limits.Good Samaritan Liability - Included in MEL excess General Liability limitsEmergency Service Units & Auxiliaries - Included in MEL excess General

Liability limits.

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Note 10: RISK MANAGEMENT (CONT'D.)

A. Liability and Workers Compensation (Cont'd.)

Summary of Risk Management Program (Cont'd.)

2. General Liability (Cont'd.)

Other - $4,700,000 CSL excess of the Funds' $300,000. The $3,500,000 excess of$1,500,000 layer is included in the MEL's General Liability $3,500,000 excess$1,500,000 per member local unit annual aggregate limit.

Garage Keeper Liability- $1,700,000 CSL excess of the Funds' $300,000. - The$500,000 excess of $1,500,000 layer is included in the MEL's General Liability$3,500,000 excess $1,500,000 per member local unit annual aggregate limit.

Failure to Supply Liability- $4,700,000 CSL excess of the Funds' $300,000. The$3,500,000 excess of $1,500,000 layer is included in the MEL's General Liability$3,500,000 excess $1,500,000 per member local unit annual aggregate limit.

Riot/Civil Commotion - $4,700,000 CSL excess of the Funds' $300,000. The$3,500,000 excess of $1,500,000 layer is included in the MEL's General Liability$3,500,000 excess $1,500,000 per member local unit annual aggregate limit.

Dams (Class III and IV - Low Hazard) - $4,700,000 CSL excess of the Fund's$300,000. The $3,500,000 excess of $1,500,000 layer is included in the MEL'sGeneral Liability $3,500,000 excess $1,500,000 per member local unit annualaggregate limit.

Dams (Class I and II - High Hazard) - $700,000 CSL excess of the Fund's $300,000.Subsidence Property Damage Liability - $1,700,000 CSL excess of the Fund's 300,000.

The $500,000 excess of $1 ,500,000 layer is included in the MEL's General Liabilityand is subject to a $2,000,000 annual aggregate "all members" limit excess of the$1,500,000 each occurrence. There is no bodily injury liability sub-limit forsubsidence.

Sewer Back Up - $1,750,000 CSL excess of the Fund's 300,000. The $500,000 excessof $1,500,000 layer is included in the MEL's General Liability and is subject to a $2million annual aggregate "all members" limit excess of the $1,500,000 eachoccurrence. There is no bodily injury liability sub-limit for sewer back up.

Disinfecting Agents Release Hazard- $700,000 CSL excess of the Funds' $300,000Skateboard Facilities - $4,700,000 CSL excess of the Funds' $300,000. The $3,500,000

excess of $1,500,000 layer is included in the MEL's General Liability $3,500,000excess $1,500,000 per member local unit annual aggregate limit. (Note: RequiresFund approval)

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3. Automobile Liability

The Fund covers $300,000 CSL for bodily injury liability, property damage liability andPIP.

The Fund covers $15,0001$30,0001$5,000 for uninsuredlunderinsured motorist liability.The MEL covers Automobile Bodily Injury and Property Damage Liability claims excess of

the Fund's $300,000 CSL limit in the MEL's excess General Liability limit, except thatauto liability claims which penetrate the excess of $1 million layer are not subject to theaggregation limitation.

The JIF provides PIP limits of $250,000.The MEL does NOT provide excess PIP or Uninsured/Underinsured Motorists Coverage.

4. Non-Owned Aircraft

The MEL covers $5,000,000 CSL for Bodily Injury and Property Damage Liability, and$5,000 medical expense for each passenger.

5. Public Official Liability (POL)

The CJJIF, 100% commercially insured through XL Insurance, covers $2,000,000 in theaggregate on a claims made basis per member municipality for each Fund Year, subject to adeductible and coinsurance as outlined below. There is a combined POLlEPL $2,000,000 permember local unit annual aggregate.

$20,000 deductible per occurrence. Except that $75,000 deductible per occurrence appliesfor member local units with unfavorable loss experience. This applies to members thatreported 3 or more POLlEPL claims during the period of 2006 to 2010* and incurred a lossratio greater than 200%.

*Calculation will be based on the most recent five years. Each year thereafter, claimsreported during the year that just ended will be added and claims reported during the oldestyear will be deleted.

20% coinsurance of the first $250,000 of the loss.

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6. Employment Practices Liability (EPL)

The CJJIF, 100% commercially insured through XL Insurance, covers $2,000,000 in theaggregate on a claims made basis per member municipality for each Fund Year, subjectto a deductible and coinsurance as outlined below. There is a combined POLlEPL$2,000,000 per member annual aggregate.

For member local units with approved EPL Loss Control/Risk Management Programs:

$20,000 deductible per occurrence. Except that $75,000 deductible per occurrenceapplies for member local units with unfavorable loss experience. This applies tomembers that reported 3 or more POLlEPL claims during the period of 2006 to 2010*and incurred a loss ratio greater than 200%.

*Calculation will be based on the most recent five years. Each year thereafter, claimsreported during the year that just ended will be added and claims reported during theoldest year will be deleted.

20% coinsurance of the first $250,000 of the loss.

For member local units without approved EPL Loss Control/Risk ManagementPrograms:

$100,000 deductible per occurrence, except that $150,000 deductible per occurrenceapplies for member local units with unfavorable loss experience. This applies tomembers that reported 3 or more POLlEPL claims during the period of 2006 to 2010*and incurred a loss ratio greater than 200%.

*Calculation will be based on the most recent five years. Each year thereafter, claimsreported during the year that just ended will be added and claims reported during theoldest year will be deleted.

20% coinsurance (no cap) 1st $2 million of loss (not imposed against optional limits).

7. Directors and Officers Liability (D & 0) - Fire Company & EMS

The MEL provides optional $1,000,000 or $2,000,000 annual aggregate limits for FireCompanies or Emergency Service Units, subject to optional deductibles of $1,000, $2,000 or$5,000.

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8. Property

The Fund covers $50,000 per occurrence excess of applicable member deductibles.The MEL provides Excess Claims Coverage with the following limits

Basic Statewide Limit - $100,000,000/occurrenceEarthquake - $50,000,000 (annual aggregate)Flood - $50,000,000 (annual aggregate) except;Flood Inside 100 yr. Flood Zone - $2,500,000 per locationAsbestos Cleanup - $50,000 (annual aggregate)Boiler & Machinery - $100,000,000Extra Expense - $10,000,000Valuable Papers & records - $10,000,000Accounts Receivable - $10,000,000Demolition - $25,000,000Increased Construction Costs - $25,000,000Business Interruption - $5,000,000Transit - $1,000,000 per conveyance, $1 ,000,000 per occurrenceFine Arts - $2,000,000 (owned and non owned)Pollution and Contamination Cleanup (limited) - $250,000 (annual aggregate)Miscellaneous Unnamed Locations - $5,000,000Builders' Risk - $25,000,000Newly Acquired Locations - $25,000,000Cyber Secure Coverage - $1,000,000 annual aggregate (The deductible is a member entitydeductible of $100,000. The MELJIF and its member JIFs do not retain risk for thiscoverage.)Service Interruption - $10,000,000 for Service Interruption (TE and PD combined)including overhead transmission and distribution lines within 1,000 feet of the insured'spremises.Ingress/Egress - $5,000,000Leasehold Interest - $15,000,000Loss of Rents - $15,000,000Debris Removal- Lesser of $15,000,00 or 25% of lossExpediting Removal - $10,000,000Civil Authority - $5,000,000Soft Costs - $5,000,000Architects/Engineering Fees - $1,000,000Tenant Relocation - $750,000Loss Adjustment Expenses - $250,000

Property Deductibles:Standard Member Local Unit Deductible - $2,500/occurrenceBoiler & Machinery Member Local Unit Deductible - $5,000/occurrenceFlood Loss in 100 Yr. Flood Zone - $500,000 for buildings and $500,000 each building for

contents. Vehicles, pistol ranges, pumping stations and mobile equipment are subject tothe standard member local unit deductible. The flood loss deductible outside of the 100-year flood zone is the standard member local unit deductible.

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8. Property (Cont'd.)

Property Deductibles (Cont'd.):Named Storm Flood and Wind Loss - For properties within Cape May County; Atlantic

County; Ocean, Monmouth & Burlington Counties east of the Garden State Parkway aresubject to a deductible of 1% of the total insurable value (excluding vehicle values) of allcovered locations reporting loss damage in the loss, subject to a maximum deductible of$1 million per occurrence statewide. The Named Storm deductible for all other locationsis the standard member local unit deductible. Named Storm is defined as a storm that hasbeen declared by the National Weather Service to be a hurricane, typhoon, tropicalcyclone or tropical storm by the National Hurricane Center of the Center of the NationalOceanic and Atmospheric Administration's National Weather Service. Location isdefined as any building, yard, dock, wharf, pier or bulkhead (or any group of theforegoing) bounded on all sides by public streets, clear land space or open waterways,each not less than fifty feet wide. Any bridge or tunnel crossing street, space or waterwayshall render such separation inoperative for the purpose of this definition. If NamedStorm involves covered property within 100-year flood zone, the 100-year flood zonedeductible applies. If two or more deductibles provided in this Policy apply to a singleoccurrence, the total to be deducted shall not exceed the largest deductible applicableunless provided in the Policy. Piers, wharfs, docks, pilings, boardwalks andbuildings/structures thereon are covered on a named peril basis, including windstorm.There is NO coverage for flood on piers, wharfs, docks, pilings, boardwalks andbuildings/structures thereon.

9. Blanket Crime

The JIF provides a limit for $50,000 less the member entity deductible of $2,500. The MELprovides its member JIFs excess public employees bond coverage limits of $1,000,000 lessthe member JIF retention of $50,000.

10. Excess Public Officials Bond

The MEL provides excess employee dishonesty and faithful performance coverage(statutory positions only) for those employed positions which are required by law to beindividually bonded and where they have not applied and have not been approved forcoverage under the MELJIF Statutory Position Program at a limit of $1,000,000 less amember local unit's deductible, which is the higher of: (i) the amount said persons arerequired by Law to be individually bonded, whether or not such individual Bond is in placeor (ii) the amount of the individual Bond in place.

Each member local unit that has not applied for coverage under the MELJIF StatutoryPosition Bond is required to continue to purchase via the commercial market individualbonds providing primary coverage up to "at least the minimum limit required by law" forthose employed positions required by law to be individually bonded.

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11. Statutory Position Bond

The MEL provides employee dishonesty and faithful performance coverage for thoseemployed positions, which are required by law to be individually bonded and where theyhave applied and been approved for coverage at a limit of $1,000,000 per occurrence perposition less a member local unit's deductible of $2,500.

12. Optional Excess POLlEPL as follows:

a. $1 million CSL and per member local unit annual aggregate excess of $2 millionb. $2 million CSL and per member local unit annual aggregate excess of $2 millionc. $3 million CSL and per member local unit annual aggregate excess of $2 milliond. $4 million CSL and per member local unit annual aggregate excess of $2 millione. $4 million CSL and per member local unit annual aggregate excess of $6 million

13. Environmental Impairment Liability

The limits of liability as established in the E-JIF's Plan of Risk Management and coveragedocuments.

14. Optional Individual Self-Insured Retentions

East Brunswick Township - $100,000 CSL occurrence SIR for workers' compensation, autoliability and general liability . The Fund insures the workers' compensation, auto liability andgeneral liability at $200,00 excess of $100,000 layer.

15. Risk Retention Amounts for the Fund

a. Workers' Compensation (all coverages) - $300,000 CSLb. General Liability (all coverages) - $300,000 CSLc. Employment Practices Liability - none, 100% commercially insuredd. Non-Owned Aircraft - nonee. Automobile Liability

PD & BI - $300,000 CSLUnderinsured/Uninsured - $15,0001$30,0001$5,000 CSLPIP - $300,000 CSL

f. Public Officials Liability - none, 100% commercially insuredg. Optional Directors and Officials Liability - noneh. Property - $50,000 per occurrence less member deductiblesi. JIF Blanket Crime - $50,000 less member deductiblej. Optional Excess Liability - nonek. Environmental Impairment Liability - none, other than the risk of E-JIF assessment.I. Aggregate Retention - none, other than the risk of RCF assessment.m. MEL Crime - nonen. Optional Excess POLlEPL - none

The Central Jersey Joint Insurance Fund, issues publicly available financial reports that include the financialstatements and required supplementary information for insurance. The financial reports may be obtained bywriting to the Central Jersey Joint Insurance Fund, 9 Campus Drive Suite 16, Parsippany, New Jersey 07054.

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B. Employee Health Benefits

The Township has contracted with Horizon Blue Cross/Blue Shield of New Jersey for the provision of healthbenefits to eligible Township employees and retirees. The financial arrangement with the insurer provide forpayments of administrative fees, excess insurance premiums and actual claims costs, subject to theestablished self-insured limits.

For the year ended December 31, 2011, the stop-loss attachment points were as follows:$200,000 per individual125% of net projected claims of $1,073.92 per employee, per month aggregate

The Township provides a prescription drug plan and a dental plan to eligible employees and retirees throughself-insured programs and has engaged GS POPS and Horizon Healthcare Dental to administer each plan,respectively. In addition to the appropriations for these plans contained in the annual budgets of theTownship, the Township has established an additional reserve for payments in the event claims during afiscal year exceed the amounts budgeted. At December 31, 2011 the amount in this reserve was$1,660,130.48.

Note 11: ACCRUED SICK AND VACATION BENEFITS

The Township of Edison has established policies, which set forth the terms under which an employee mayaccumulate unused benefits. General Policy is as follows:

NONUNIONExisting employees upon retirement with twenty-five (25) years of pensionable service credit oremployees who have attained the age of sixty (60) shall be paid lump sum equivalent salary (base andlongevity, if applicable) for all:

1. Accumulated unused sick leave2. Unused vacation and current year personal days3. Terminal leave (if eligible)

Employees hired after December 23, 1992 shall be entitled to payment of sick leave at a rate equal to onehalf (112) of their daily rate of pay for accumulated unused sick time with said lump sum payment forsick leave, vacation, personal days and terminal leave to be capped at a maximum of fifteen thousanddollars ($15,000.00).

Those employees covered by Ordinance 0.1071-98, and hired after January 1, 1998 are not eligible forpayment of the following:

1. Accumulated unused sick leave2. Unused vacation and current year personal days3. Terminal leave (if eligible)

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Note 11: ACCRUED SICK AND VACATION BENEFITS (CONT'D.)

PBA

Each member shall be granted one and one-quarter (1 l;4) sick days per month for a total of fifteen (15) daysper year up to the time of termination of employment. Effective on January 1, 2010, each member shall begranted two thirds (2/3) sick days per month for a total of eight (8) days per year up which days shall notaccrue from year to year. One day shall equal eight (8) hours, regardless of employee's work schedule.Members will be paid at the time of retirement or termination for one half (1/2) of the total amount of sickdays accrued from the date of hire to December 31, 2004, if the termination occurs while in good standing.Calculation for entitlement under this article at retirement shall be based upon total hours accumulated timesthe rate of pay as of December 31, 2004, regardless of employee's work schedule or date of retirement.Payment made to each employee in accordance with this section shall not exceed Twenty-Thousand($20,000) Dollars. In the event an employee utilizes any of this amount for sick time the payment at the timeof retirement shall be reduced accordingly.

IAFF

1) If termination occurs while in good standing, employees will be paid for one half of the total amountof sick leave accrued, up to 2184 hours, at the rate equal to the highest salary attained at the time oftermination of employment by that employee, excluding overtime. Payments shall be made by lump sum onthe day of termination of employment or the next payday thereafter. Employees will be paid the remainingaccumulated sick leave as terminal leave.

2) Following a request of the employee, the Township may, in its discretion, subject to availableappropriations, pay the total amount due for accumulated sick leave in one lump sum payment.

3) Effective January 1, 2003, no employee shall receive payment for sick leave at the time ofretirement or termination in excess of 2184 hours or the amount of sick leave accumulated by the employeeas of December 31, 2002, which ever is greater.

EMTs

Upon retirement, employees shall be paid one hundred (lOO%) percent of all unused sick days, to amaximum ofTen Thousand Dollars ($10,000.00).

CARPENTERS

Upon retirement, employees shall be paid one hundred (100%) percent of all unused sick days, to amaximum of Twelve Thousand Five Hundred Dollars ($12,500.00).

NURSES

As of December 31, 1999 employees no longer can carryover sick time to be paid. Sick time can beaccumulated only for being sick. All sick time accumulated through December 31, 1999 and not used willbe reimbursed in full at the time of retirement or separation, at the then prevailing rate of pay.

DPW SUPERVISORS

Payment of one hundred percent of all accumulated sick leave to a maximum of Twenty Thousand Dollars($20,000.00). Any employee who has accumulated more than $20,000.00 in accumulated sick leave as ofJanuary 1,2004 shall be capped at the amount as of that date calculated using 2004 rates of pay.

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Note 11: ACCRUED SICK AND VACATION BENEFITS (CONT'D.)

AFSCME

A. When an employee retires after twenty-five (25) years of service or the age of sixty (60), he/she willreceive:1. 100% pay accumulated sick time not to exceed twenty thousand dollars ($20,000); and2. 100% pay for all accrued vacation time and any allowable remaining personal days.3. Retirement payoff will be made within thirty (30) working days from the last day of

employment.B. An employee who retires after fifteen (15) years of service, regardless of age will receive:

1. Twenty (20) days of their accumulated sick time at full pay; and2. 100% pay for all accrued vacation time and any allowable remaining personal days.3. Retirement payoff will be made within thirty (30) working days from the last day of

employment.

UAW

Thirteen (13) days paid sick leave each year shall be granted to all Employees, and the same shall becumulative from year to year. Employees having not used one or more of their sick days for that year willhave the option to be paid their current wage rate for up to six (6) of these unused days in lieu ofaccumulating same. Any employee who has more than six (6) days unused from a given year and wishes tobe paid wages for their remaining days, in lieu of accumulating same, may be paid one (1) day's current rateof pay for every two (2) unused sick days. The purpose of this provision is that, at the end of each calendaryear, an employee may elect to be paid for unused sick time. The rate of pay will be 100% for the first six(6) sick days unused, and 50% for next seven days of unused sick time.

The employee must notify the Employer on January 10th of his or her election, payment to be made in thefirst paycheck after February 15th of the year. Upon retirement, employees shall be paid on hundred (100%)percent of all unused sick days, to a maximum of Ten Thousand Dollars ($10,000.00), or the total amount ofaccumulated sick time as of January 1st, 2003 at 2003 rates, whichever is greater. Should the accumulatedsick time of any employee fall below the $10,000.00 provided in this Article as a result of subsequentutilization, that employee will be limited by the $10,000.00 cap.

Vacations - Vacation pay for permanent employees is accumulated in accordance with the approvedschedules for their respective units. Vacation days shall be taken during the current year and shall notaccumulate, except that vacation time may be carried over to the next succeeding year only. This_carryoverprovision is not applicable to Police and Fire Officers. An employee who has separated his/her employmentin good standing shall be entitled in time or in pay to any earned vacation accumulated and not previouslyused.

With the exception of the Police and Fire Departments, which maintain records for their employees, thepayroll office maintains up-to-date records of each employee's status relating to earned and unused sick andvacation pay. At December 31,2011, the total value of accumulated compensated absences, based upon thencurrent pay rates, was $14,961,428. This total is not intended to represent amounts that will ultimately bepaid to employees upon termination or retirement, as no adjustment has been made to reflect the limitationson lump sum payments. Expenditures for payment of accrued sick and vacation benefits are recorded in theperiod in which the payments are made.

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NOTES TO FINANCIAL STATEMENTSNote 12: LEASE COMMITMENTS

The Township has entered into lease/purchase agreements with the Middlesex County ImprovementAuthority (MCIA) for the acquisition of equipment and other capital projects. Financing for these programsis provided from the proceeds of sales of MCIA Bonds, which are guaranteed by the County of Middlesex.Lease payments are structured to match the maturing principal and interest on the underlying MCIA Bonds,which includes all costs of issuance, plus annual "Administrative" and "Trustee" fees. Interest rates on leasecommitments range from 3.7% to 6.5%.

Future lease payments and the present value of net minimum lease payments at December 31,2011

YearEnded, Amount

2012 $277,441

$277,441

11,620

$265,821

Total Minimum Lease Payments

Less: Amount Representing Interest

Present Value of Net Minimum Lease Payments

Note 13: PRIV ATIZA TION OF WATER DELIVERY SERVICES

On June 25, 1997, the Township entered into an agreement with the Edison Water Company (the"Operator") for Operation, Maintenance and Management Services for the Township's Municipal WaterSystem. This agreement sets forth an initial term of twenty (20) years and provides for up to two additionalfive year extensions at substantially similar terms. The agreement effectively provides for the privatizationof the Township's water system for the term of the agreement. The agreement is permitted under theprovisions of the New Jersey Water Supply Public-Private Contracting Act (NJSA 58:26-19 et seq.), andincludes provisions, which freeze the base rate structure for an initial period (generally, through June, 2002)and limit rates during the remainder of the agreement, subject to Unforeseen Events.

Upon the execution of the agreement, the Operator paid an initial concession fee of $4,954,763.75 to theTownship. This amount was deposited to the Township's Current Fund and recorded as a component ofMiscellaneous Revenues Not Anticipated for the year ended June 30, 1997. The agreement also requires theOperator to make scheduled payments to the Township during each year of the agreement. The scheduledpayments, which will be received in varying amounts per year, total to $9,593,794 and will be recorded asCurrent Fund revenues upon receipt.

The Township was not required to adopt a Water Utility Operating Budget for fiscal years, whichcommenced on or after July 1, 1998, and such budgets will not be required during the term of the agreement.Similarly, as the agreement anticipates that the Operator will maintain and improve the water system, nocapital projects relating to the system are anticipated in the Township's Capital Budget Program.

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Note 14: INTERFUNDS

The foIl owing interfund balances remained on the balance sheet date at December 31, 2011 :

Interfunds InterfundsFund Receivable Payable

Current Fund $60,965.70 $1 ,866,229.22Grant Fund 1,834,673.01Trust Funds 51,058.10 77,173.41General Capital Fund 3,654.26Water Utility Operating Fund 11,818.16Water Utility Capital Fund 11,617.13Sewer Utility Operating Fund 93,652.70Sewer Utility Capital Fund 93,091.59

Total $2,051,966,64 $2,051,966.64

These interfund balances are not an indication that the respective fund cannot meet its obligation. Theinterfund amounts are reflective of year-end closing journals and adjustments. The balances resulted fromthe time lag between the dates that (1) interfund goods and services are provided or reimbursableexpenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between fundsare made. Transfers are used to (1) move revenues from the funds New Jersey Statute or budget requires tocollect to fund the appropriation and the statute or budget to expend them.

Note 15: LENGTH OF SERVICE AWARD PROGRAM (LOSAP) - (UNAUDITED)

The Township has instituted a Length of Service Award Program (LOSAP) pursuant to Internal RevenueCode Section 457(e) and P.L. 1997, c.388 as amended by P.L 2001, c.272. The Program provides for fixedannual contributions to a deferred income account for volunteer firefighters and first aid and rescue squadmembers who meet specified service criteria. The Township sponsors the Program, which is administered bya private contractor. The LOSAP section of this document includes the relevant unaudited financialstatements and notes for the Program.

Note 16: CONTINGENT LIABILITIES

At December 31,2011, the Township had litigation pending. The majority of this litigation involves claimsagainst the Township relating to matters that traditionally would be covered through the procurement ofworkers' compensation and liability insurance policy coverages. As more fully described in Note 11, theTownship has participated in ajoint insurance fund since June 1998.

In regard to State Court Tax Appeals, those matters, as with all matters, are being vigorously defended andsettled when prudent. The Township has addressed, in its Budget, and has implemented procedures inaccordance with the applicable State finance and budget statutes and regulations to satisfy refunds and/orcredits required by settlements and/or judgements for State Court Tax Appeals. It is expected that thesettlements and/or judgements for these matters in the aggregate will result in significant reductions toassessed values and require refunds and/or credits that would be material to the Township's financialposition.

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Note 17: POST EMPLOYMENT BENEFIT PLANS OTHER THAN PENSION PLANS & POST RETIREMENTHEALTH CARE BENEFITS

The Township of Edison provides its retirees with health benefits, which are fully funded by the Township.These benefits are negotiated for through each bargaining unit's contract. In order to receive fully paidhealth benefits, retirees must have been enrolled in the Public Employees Retirement Fund or the Police andFiremen's Retirement Fund for 25 years. Retirees receive the same type of health insurance coverage thatthey were receiving prior to retirement. The annual cost of post-retirement health benefits has not beencalculated.

The contribution requirements of plan members and the participating agencies are established and may beamended by the MCJHIF Commissioners. The Township's annual postemployment benefit (OPEB) cost(expense) is calculated based on the annual required contribution of the employer (ARC), an amountactuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents alevel of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortizeany unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows thecomponents of the Township's annual OPEB cost for the year, any amounts contributed to the plan and theTownship's net OPEB obligation. For 2011, the Township's annual OPEB cost (expense) of $17,428,948was equal to the ARC.

TotalNet OPEB obligation - beginning of year $0Annual required contribution (ARC) 17,428,948Less: Contributions 0

Net OPEB obligation end of year $17,428,948

The funded status of the plan for the Township as of December 31, 2011, is as follows:

TotalActuarial accrued liability (AAL) $208,850,224Actuarial value of plan assets - 0 -

Unfunded actuarial accrued liability (UAAL) $208,850,224Funded ratio (actuarial value of planassets/AAL) 0.00%

Covered payroll (active plan members) $67,566,986UAAL as a percentage of covered payroll 391.83%

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Note 17: POST EMPLOYMENT BENEFIT PLANS OTHER THAN PENSION PLANS & POST RETIREMENTHEAL TH CARE BENEFITS (CONT'D.)

The projection of future benefits for an ongoing plan involves estimates of the value of reported amountsand assumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the health-care cost trend. Amounts determinedregarding the funded status of the plan and the annual required contributions of the employer are subject tocontinual revision as actual results are compared with past expectations and new estimates are made aboutthe future. The schedule of funding progress presented as required supplementary information following thenotes to the financial statements, presents trend information about whether the actuarial value of plan assetsis increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan and includes thetypes of benefits provided at the time of each valuation and the historical pattern of sharing benefit costsbetween the employer and plan members to that point. The actuarial methods and assumptions used includetechniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities andthe actuarial value of assets, consistent with the long-term perspective of the calculations.

In the December 31, 2008 actuarial valuation, the projected unit credit method was used. A rate of 4.50%was utilized as the discount rate and the amount of increase in the normal cost amount. The unfundedaccrued liability is being amortized as a level dollar amount using an open period of thirty (30) years.

Note 18: SUBSEQUENT EVENTS

Subsequent to December 31, 2011, the following item is reported subsequent to the balance sheet date.

The Township issued Bond Anticipation Notes dated April 26, 2012 and mature on August 31, 2012. TheBAN's were issued for $4,410,000 with an interest rate of 1.00%.

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TOWNSHIP OF EDISON


PART II

SUPPLEMENTARY SCHEDULES

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SINGLE AUDIT SECTION

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HODULIK & MORRISON, P .A.CERTIFIED PUBLIC ACCOUNTANTS



1102 RARITAN AVENUE,P.O. BOX 1450


(732) 393-1000(732) 393-1196 (FAX)

ANDREW G. HODULIK, CPA, RMA, PSAROBERT S. MORRISON, CPA, RMA, PSA


REGISTERED MUNICIPAL ACCOUNTANTS OF NJ.JO ANN BOOS, CPA, PSA

REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



We have audited the financial statements - regulatory basis of the Township of Edison, County ofMiddlesex, New Jersey as of and for the year ended December 31, 2011, which collectively comprise theTownship of Edison's financial statements and have issued our report thereon dated August 1,2012. Ourreport expressed a qualified opinion on the financial statements in conformity with this regulatory basisbecause we did not audit the Statement of Governmental Fixed Assets. Our report also expressed amodified opinion because of the departure from accounting principles generally accepted in the UnitedStates of America as disclosed in Note 2. Except as discussed above, we conducted our audit inaccordance with auditing standards generally accepted in the United States of America; the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States and audit requirements as prescribed by the Division of Local GovernmentServices, Department of Community Affairs, State of New Jersey.

Internal Control Over Financial Reporting

Management of the Township of Edison is responsible for establishing and maintaining effective internalcontrol over financial reporting. In planning and performing our audit, we considered the Township ofEdison's internal control over financial reporting as a basis for designing our auditing procedures for thepurpose of expressing our opinion on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of the Township of Edison's internal control over financial reporting.Accordingly, we do not express an opinion on the effectiveness of the Township of Edison's internalcontrol over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or combinationof deficiencies, in internal control such that there is reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.

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Our consideration of the internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and was not designed to identify all deficiencies in internal control overfinancial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did notidentify any deficiencies in internal control over financial reporting that we consider to be materialweaknesses, as defined above. However, we identified certain deficiencies in internal control overfinancial reporting, described in the accompanying schedule of findings and questioned cost that weconsider to be a significant deficiency in internal control over financial reporting. This matter has beenreferenced as FY2011-1. A significant deficiency is a deficiency, or combination of deficiencies ininternal control that is less severe than a material weakness, yet important enough to merit attention bythose charged with governance.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Township of Edison's financial statementsare 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 materialeffect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards and audit requirements as prescribed by theDivision of Local Government Services, Department of Community Affairs, State of New Jersey.However, we noted certain immaterial instances of noncompliance that we have reported to themanagement of the Township in the General Comments section of the Report of Audit.

We also noted other matters involving compliance and internal control over financial reporting that wehave reported to management of the Township of Edison in the General Comments section of the Reportof Audit.

This report is intended solely for the information and use of the Mayor and Township Council,management, the Division of Local Government Services and federal and state awarding agencies and isnot intended to be and should not be used by anyone other than these specified parties.

Maid c; /1~/Jl1 I!A.HODULIK & MORRISON, P.A.Certified Public AccountantsRegistered Municipal Accountants


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HODULIK & MORRISON,P.A.CERTIFIED PUBLIC ACCOUNTANTS



1102 RARITAN AVENUE,P.O.BOX 1450


(732) 393-1000(732) 393-1196 (FAX)

ANDREW G. HODULIK. CPA. RMA. PSAROBERT S. MORRISON. CPA. RMA. PSA


REGISTERED MUNICIPAL ACCOUNTANTS OF N.J.JO ANN BOOS. CPA. PSA

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTSTHAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCEWITH OMB CIRCULAR A-133 AND NEW JERSEY OMB CIRCULAR 04-04



Compliance

We have audited the compliance of the Township of Edison, County of Middlesex, New Jersey with thetypes of compliance requirements described in the "U.S. Office of Management and Budget (OMB)Circular A-133 Compliance Supplement" and the New Jersey Compliance Manual "State GrantCompliance Supplement" that are applicable to each of its major federal and state programs for the yearended December 31,2011. The Township of Edison's major federal and state programs are identified inthe summary of auditor's results section of the accompanying schedule of findings and questioned costs.Compliance with the requirement oflaws, regulations, contracts and grants applicable to each of its majorfederal and state programs is the responsibility of the Township of Edison's management. Ourresponsibility is to express an opinion on the Township of Edison's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; audit requirements as prescribed bythe Division of Local Government Services, Department of Community Affairs, State of New Jersey;OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations" and NewJersey OMB Circular 04-04. Those standards and circulars require that we plan and perform the audit toobtain reasonable assurance about whether noncompliance with the types of compliance requirementsreferred to above that could have a direct and material effect on a major federal or state program occurred.An audit includes examining, on a test basis, evidence about the Township of Edison's compliance withthose requirements and performing such other procedures, as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does notprovide a legal determination on the Township of Edison's compliance with those requirements.

In our opinion, the Township of Edison, complied, in all material respects, with the requirements referredto above that are applicable to each of its major federal and state programs for the year ended December31,2011.

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Internal Control Over Compliance

Management of the Township of Edison is responsible for establishing and maintaining effective internalcontrol over compliance with requirements of laws, regulations, contracts and grants applicable to federaland state programs. In planning and performing our audit, we considered the Township of Edison'sinternal control over compliance with the requirements that could have a direct and material effect on amajor federal or state program in order to determine our auditing procedures for the purpose of expressingour opinion on compliance and to test and report on internal control over compliance in accordance withOMB Circular A-133 and New Jersey OMB Circular 04-04, but not for the purpose of expressing anopinion on the effectiveness of internal control over compliance. Accordingly, we do not express anopinion on the effectiveness of the Township of Edison's internal control over compliance.

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

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

This report is intended solely for the information and use of the Mayor and Township Council,management, the Division of Local Government Services and federal and state awarding agencies and isnot intended to be and should not be used by anyone other than these specified parties.

/It;cluW~' iIM!tM/JL//~.HODULIK & MORRISON, P.A.Certified Public AccountantsRegistered Municipal Accountants


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SCHEDULE OF FEDERAL AND STATE EXPENDITURE AWARDS

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Schedule ATOWNSHIP OF EDISON

MIDDLESEX COUNTY NEW JERSEYSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


FEDERAL PASS-TIIROUGH PROGRAM RECEIPTS CUMULATIVEFEDERAL GRANTOR! CFDA GRANT ENTITY IDENTIFYING OR AWARD OR REVENUE EXPENDITURESPROGRAM TITLE NUMBER YEAR NUMBER AMOUNT RECOGNIZED EXPENDITURES DEC. 31 2011

Department of Housing & Urban Development:Direct Program:

CDBG - Entitlement Grants ClusterCommunity Development Block GrantlEntitlement Grant 14.218 7/1/06-6/30107 N/A $ 666,295.00 $ 224,160.92 $ 224,160.92 $ 634,304.26Community Development Block GrantlEntitlement Grant 14.218 7/1/07-6/30/08 N/A 638,158.00 33,530.85 33,530.85 590,488.98Community Development Block GrantlEntitlement Grant 14.218 7/1/08-6/30/09 N/A 644,679.00 147,826.34 147,826.34 565,531.91Community Development Block Grant/Entitlement Grant 14.218 7/1/09-6/30/10 N/A 695,024,00 314,478.19 314,478,19 308,133.19Community Development Block GrantlEntitlement Grant 14.218 7/1/10-6/30/11 N/A 578,197.00 90,751.09 91,514,00 91,514.00Community Development Block GrantlEntitlement Grant - ARRA 14,253 711109-6/30/10 N/A 173,348.00 39,273.45 39,273.45 160,689.42Housing Opportunities for Persons with AIDS 14.241 711109-6/30/10 N/A 1,516,177.00 1,353,202.89 1,353,202.89 1,353,202.89Housing Opportunities for Persons with AIDS 14.241 7/1/10-6/30/11 N/A 1,497,875.00 11,234.00 11,234.00 11,234.00

Department of Health and Human ServicesPass-through State ofNJ Department of Health

Public Health Emergency Preparedness - InfluenzaA-HINl Grant 93.069 10/01109-07/30/12 046-4230-100-480 218,538,00 1,274.00 210,538.00Public Health Emergency Preparedness - InfluenzaA-HlNI Grant 93.069 10/01111-07/30/14 046-4230-100-480 10,000,00 10,000,00 7,308.42 7,308.42Pandemic Flu Grant 93,069 07/01/07-06/30/08 046-4230-100-360 14,349,00 7,769.64

Department of EnergyEnergy Efficiency and Conservation Block Grant Program 81.128 08/14/09-08/13/12 N/A 999,700.00 756,000,00 2,033.79 42,873.34

Department of Transportation:'.J Highway Safety Cluster'.J Pass-through State ofNJ Department of Law and Public Safety

Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.601 7/1/08-06/30/09 066-1160-100-057 41,719,14 4,970.50 17,081.19Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.601 111109-12131109 066-1160-100-057 38,592.49 264,16 264.16

Department of Defense:Community Planning Assistance 12.607 7/1/08-6/30/09 N/A 60,000.00 15,119.00 13,861.00 27,211.70

Department of Homeland Security:Pass-through State ofNJ Department of Law and Public SafetyEmergency Management Performance Grant 97,042 7/1/1 0-6/30111 066-1200-100-726 5,000,00 5,000,00 5,000.00FY07 Buffer Zone Protection Program 97.078 7/1/08-6/30109 066-1005-100-009 192,500.00 56,616,78 39,261.62 192,132.30NJDHS - Buffer Zone Protection 97,078 2005 N/A 99,577.00 8,259.53 96,280.53FEMA -Assitance to Firefighters Grant 97.044 zou N/A 341,696.00 245,924,00 243,754.46 243,754,46Emergency Management Performance Grant - Exercise Support Prog 97.042 2010 066-1200-100-726 7,987,69 7,085.70 7,085,70Law Enforcement Block Grant - Technology 16.592 2002 N/A 61,293.90 17,451.19

Department of Justice:Pass-through State ofN] Department of Law and Public SafetyBulletproof Vest Partnership 16,607 7/1/06-6/30/07 N/A 10,740.49Juvenile Justice & Delinquency Prevention - Municipal Alliance Summer Outreach Grant 16,540 7/1/09-6/30/10 066-1500-100-026 20,000,00 10,000.00 17,949,85Edward Byrne Grant - Justice Assistant Grant 16.738 1/1/08-12131108 066-1020-100-364 ll,740.00 ll,113.38Edward Byrne Grant - Justice Assistant Grant 16.738 111/09-12131/09 066-1020-100-364 163,108.00 163,108.00 163,108,00 163,108,00Edward Byrne Grant - Justice Assistant Grant 16.738 1/1/09-12131/09 066-1020-100-364 39,556,00 39,556.00 39,556,00Edward Byrne Grant - Justice Assistant Grant 16.738 1/1/10-12131/10 066-1020-100-364 37,897.00 36,075.67 36,075,67Edward Byrne Grant - Justice Assistant Grant 16,738 111111-12131111 066-1020-100-364 30,401.00 30401.00 30401.00

$ 3510781.51 $ 2 777 878,49 $ 4888053.18

Footnotes:

NOTE: See accompanying Notes to Schedules of Expenditures of Awards.

The Township's federal grants are presented within the Township's overall financial statements onthe modified accrua1 basis of accounting with accounting principles prescribed by the Division ofLocal Government Services, Department of Community Affairs, State of New Jersey, which is acomprehensive basis of accounting other than generally accepted accounting principles.

N/A - Not Available


NOTES TO THE SCHEDULES OFEXPENDITURES OF FEDERAL AWARDS

DECEMBER 31, 2011

NOTE 1. GENERAL

The accompanying schedules of financial assistance present the activity of all federalfinancial assistance programs of the Township of Edison. The Township is defined in NoteleA) to the financial statements. All federal financial assistance received directly fromfederal agencies, as well as federal financial assistance passed through other governmentagencies is included on the schedule of federal financial assistance.

NOTE 2. BASIS OF ACCOUNTING

The accompanying schedules of financial award are presented using the cash basis ofaccounting.

NOTE 3. RELATIONSHIP TO GENERAL FINANCIAL STATEMENTS

Unless specifically noted, the amounts reported in the accompanying schedules agree withamounts reported in the Township'S financial statements.

NOTE 4. RELATIONSHIP TO FEERAL AND STATE FINANCIAL REPORTS

Unless specifically noted, the amounts reported in the accompanying schedule agree with theamounts reported in the related federal financial reports, where required.

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SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31,2011

Section 1 - Summary of Auditor's Results

Financial Statements

Type of auditor's report issued: Qualified

Internal Control over financial reporting:

I) Material weakness( es) identified? _.:...:X,--_No

2) Significant deficiencies identified thatare not considered to be material weaknesses? X Yes ___ No

Noncompliance material to general-purpose financialstatements noted? ___ Yes _=X'-----------'No

Federal Awards

Internal Control over major programs:

I) Material weakness( es) identified? Yes---- _"--'X'-----~N0

2) Significant deficiencies identified thatare not considered to be materialweaknesses? ____ yes _.:...:X'-----_N0

Type of auditor's report issued on compliance for major programs: unqualified

Any audit findings disclosed that are required to be reportedin accordance with section 510(a) of Circular A-133? Yes__ -'X;_;:__No

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

14.241 Housing Opportunities for Persons with AIDS

97.044 FEMA - Assistance to Firefighters Grant

Dollar threshold used to distinguish between type A and B programs: $300,000.00

Auditee qualified as low-risk auditee? Yes--- X No

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Schedule CPage 1 of 4



SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31, 2011

(continued)

Section 1 Summary of Auditor's Results(cont'd.)

State Awards - Not Applicable - expenditures below $500,000

Dollar threshold used to distinguish between type A and type B programs: $ _

Auditee qualified as low-risk auditee? ___ Yes ___ No

Type of auditor's report issued on compliance for major programs: unqualified

Internal Control over financial reporting:

I) Material weakness( es) identified? ____ yes

2) Significant deficiencies identified thatare not considered to be material weaknesses? ____ yes No

Any audit findings disclosed that are required to be reportedin accordance with NJOMB Circular Letter 04-04 yes No

Identification of major programs:

GMIS Number(s) Name of State Program

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SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31,2011

(continued)

Section II - Financial Statement Findings

Noncompliance

There were no instances noted of non-compliance.

Significant Deficiencies:

Finding FY2011-01 - Payroll function between Human Resources and Finance Department

Criteria:

The internal control environment should provide for a segregation of duties between personnel filemaintenance (Human Resources) and timekeeping and processing of pay (Payroll).

Condition:

The Human Resource Department has complete control over all personnel and payroll functions.

Context:

Either through cost saving measures or by the void created by recent turnovers in the CFO position, theHuman Resource Department has assumed complete control over all payroll functions.

Effect:

In the current environment, it is possible for a single person to completely control payroll processingwith no systemic checks built-in. This greatly increases the risks, both intentional and unintentional, thatincorrect or erroneous payments could be made for time not worked.

Cause:

Unknown

Recommendation

That the payroll processing function be re-established under the authority and supervision of the CFO.

Views of responsible officials and planned corrective action:

The Township agrees with the recommendation and will consider implementation of the aboverecommendation.

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SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31, 2011

(continued)

Section III - Federal Awards and State Financial Assistance Findings and Questioned Costs

Noncompliance:

FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE PROGRAMS:

None noted

Significant Deficiencies:

None notes

Questioned Costs:

None noted

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Schedule CPage 4 of4


SUMMARY SCHEDULE OF PRIOR FINDINGSFOR THE TRANSITION YEAR ENDED DECEMBER 31,2011

Section 1 - Summary of Prior Year State Findings

Finding FY2010-01 is repeated in the current year as Finding FY20 11-01.

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Schedule D

Current Fund

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Exhibit - A-4

SCHEDULE OF CURRENT FUND CASH AND INVESTMENTS

REF. CURRENT FUND

Balance - December 31, 2010 A $32,445,761.70

Increased by Receipts:State of New Jersey (Ch. 20, P.L. 1976) A-6 714,967.00Taxes Receivable A-7 325,952,478.89Tax Title Liens A-8 159,907.96Revenue Accounts Receivable A-I0 28,429,720.98Prepaid Taxes A-ll 2,124,746.74Special Emergency Note A 1,270,000.00Interfund Receipts:Animal Control Fund A-12 180,292.00Developers' Escrow Fund A-12 7,515.26Trust-Other Fund A-12 2,934.80CDBGFund A-12 120,322.14General Capital Fund A-12 2,584.66Water Utility Oper. Fund A-12 967,754.47Trust-Other Fund A-l3 3,455.77Sewer Utility Oper. Fund A-l3 8,049,964.13State and Federal Grant Fund A-13 2,077,979.22

State Library Aid A-14 46,067.00NJ ElT Loans Payable A-14 4,608.78Reserve for Public Defender Fees A-14 18,239.50Accounts Payable A-20 171,037.00Due from Edison Sheltered Workshop A-21 68,404.45Deferred Charges A-23 4,388,541.63

374,761,522.38

407,207,284.08

Decreased by Disbursements:Change Funds A 200.00Budget Expenditures A-3 112,567,994.30Interfund Disbursements:Animal Control Fund A-12 100.41Developers' Escrow Fund A-12 7,210.51CDBGFund A-12 38,250.00Water Utility Oper. Fund A-12 966,309.24Trust-Other Fund A-l3 7l3,014.86Sewer Utility Oper. Fund A-l3 8,049,732.55State and Federal Grant Fund A-l3 1,498,907.82

State Library Aid A-14 50,832.90Reserve for Public Defender Fees A-14 20,758.52Appropriation Reserves A-15 3,309,333.02Tax Overpayments A-16 349,079.07Reserve for Tax Appeals A-17 2,450,000.00Garbage District Taxes A-19 8,861,851.00Accounts Payable A-20 174,386.82Due from Edison Sheltered Workshop A-21 5,422.62Local District School Taxes A-22 186,686,376.00County Taxes A-22 51,330,459.56Due Cty. for Added and Omitted Taxes A-22 165699.63

377,245,918.83


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Exhibit - A-5

SCHEDULE OF CHANGE FUNDS

OFFICE


2010 2011

$400.00 $400.0050.00 50.0025.00 25.00

$475.00 $475.00

Ref. A A

Exhibit - A-6

Division of Tax CollectionsMunicipal CourtPolice Records Clerk

SCHEDULE OF DUE FROM STATE OF NEW JERSEYSENIOR CITIZENS AND VETERANS DEDUCTIONS

PER CHAPTER 73, P.L. 1976

Balance - December 31, 2010 A $10,500.00

Increased by:Deductions Allowed Per Tax Billings2011 Deductions Allowed by Collector

A-6 728,000.00A-6 12,750.00

740,750.00

751,250.00

A-6 27,382.18A-4 714,967.00

742,349.18

A $8,900.82

Decreased by:2011 Deductions Disallowed by CollectorPayment Received


Analysis of Senior Citizens, Veteransand Disability Deductions Realizedas Revenues in 2011

Deductions Allowed Per Tax Billings2011 Deductions Allowed by Collector

A-6A-6

$728,000.0012,750.00

740,750.00Less:2011 Deductions Disallowed by Collector A-6 27,382.18

Amount Realized as Revenue - 2011 A-7 $713,367.82

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SCHEDULE OF TAXES RECEIVABLE AND Exhibit - A-7ANALYSIS OF PROPERTY TAX LEVY

ST SHARE TAXSTATE BALANCE 2011 OVER REMITTED TRANSFER BALANCE

FISCAL DEC 31, ADDED COLLECTIONS BY COLLECTOR SR. CITIZEN PAYMENTS AND TO TAX DEC 31,

YEAR 2010 2011 LEVY TAXES 2010 2011 DEDUCTIONS APPLIED CANCELLED TITLE LIEN 2011

TY2009 $11,757.65 $ 773.80 $ $ 11,757.65 $ $ $ $773.80

CY2010 66626.94 1527.71 26585.76 35391.22 6177.67

78,38459 2,30151 38,343.41 35,391.22 6,951.47

CY 2011 328724,1 08.64 1377,316.12 325914135.48 713 367.82 521 121.42 172 807.83 25,359.97

$7838459 $328 724 108.64 $2301.51 $1377316.12 $325,952,478.89 $713 367.82 $35391.22 $521 121.42 $172 807.83 $32,311.44

Ref A Reserve Reserve A-2,A-ll A-2,A-4 A-2,A-6 A-2,A-16 Reserve A-8 A

Ref

Anal)'sis of 20 11 Property Tax LeY)':

Tax Yield:General Purpose Tax 318,576,126.93Special District Tax 8,983,875.78Added Taxes (54:4-63.1 et seq.) I 164 105.93

$328,724, I08.64

Tax Levy:Local District School Tax:Levy (Abstract) A-22 186,686,376.00

00 Add. to Local Dist. School Tax A-2 1166175.00"'l

Total Local District School Tax 187,852,551.00

County Tax:County Tax (Abstract) A-22 46,740,601.30County Open Space Preservation A-22 4,573,621.58Due Cty, for Added & Omitted Taxes A-22 181936.31

Total County Tax 51,496,159.19

Special District Taxes:Garbage District Taxes A-19 8,983,875.78Added and Omitted A-19 33581.23

Total Special District Taxes 9,017,457.01

Local Tax for Municipal Purposes A-2 73,406,079.04Minimum Library Tax A-2 5,243,514.96Municipal Open Space A-I 711,425.02Additional Taxes Levied 996922.42

Total Local Tax for Mun. Purposes 80 357 941.44

$328,724,108.64


Increased by:Transfers from Taxes ReceivableAdded Tax Title LiensInterest and Costs Accrued by Saleof Tax Title Liens

Decreased by:Cancellations2011 Collections - Collector




SCHEDULE OF TAX TITLE LIENS

A

A-7Reserve

172,807.835,106.71

SCHEDULE OF PROPERTY ACQUIRED FOR TAXES(AT ASSESSED VALUATION)

Reserve 238.16

ReserveA-2,A-4

24,378.43159,907.96

A

A

A

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Exhibit - A-8

$465,866.43

178,152.70

644,019.13

184,286.39

$459,732.74

Exhibit - A-9

$3,948,486.98

$3,948,486.98

SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE

BALANCE ACCRUED CASHREF. DEC. 31,2010 2011 RECEIPTS

Miscellaneous Revenues Anticipated:Alcoholic Beverage Licenses A-2 $ $ 106,345.73 $ 106,345.73 $Licenses - Other A-2 457,276.27 457,276.27Fees & Permits A-2 1,239,800.11 1,239,800.11Municipal Court Fines & Costs A-2 760,452.01 760,452.01Interest & Costs on Taxes A-2 413,315.19 413,315.19Interest on Investments and Deposits A-2 372,696.60 372,696.60Latchkey Program Fees A-2 1,401,304.22 1,401,304.22Cable TV Franchise Fees A-2 278,350.00 278,350.00Trailer Court Fees A-2 10,855.60 10,855.60False Alarm Fees A-2 71,280.00 71,280.00Host Community Benefits A-2 424,935.86 424,935.86NJS City Hotel Tax A-2 769,956.92 769,956.92

00 EMT Ambulance Billing A-2 1,433,873.97 1,433,873.97'-0 Payments in Lieu of Taxes - Tax Exempt A-2 356,545.43 356,545.43

Recreation Program Fees A-2 89,273.30 89,273.30Energy Receipts Tax A-2 16,042,726.00 16,042,726.00Garden State Trust Fund A-2 15,371.00 15,371.00Uniform Fire Safety Act A-2 366,581.70 366,581.70Middlesex County Nuitrition Program A-2 4,500.00 4,500.00Railroad Station Rent A-2 96,511.68 96,511.68Uniform Construction Code Fees A-2 1,543,614.01 1,543,614.01Police Off-Duty Administration Fees - Due from Trust A-2 275,000.00 275,000.00Reimbursement - Open Space Trust Fund - Debt Service A-2 628,723.17 628,723.17

27,159,288.77 27,159,288.77

Exhibit-A-10Page 1 of2

BALANCEDEC. 31,2011

SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE

Miscellaneous Revenue Not Anticipated:Culver Bus Shelter Franchise FeesAdministrative Fee Senior Citizen and Veterans ReimbursementDurgavine 2006 Kenmore DonationEdison Water Company PaymentIntermodel Study State Aid BalanceMcDonald's RentMiddlesex County College Radio SpectrumNJ-DR 1897 FED FEMA PaymentNJ State Snowstorm - 12/16 tp 12/27/2010NJ Juvenile RestitutionNJS Motor Vehicle Inspection FeesNJ Turnpike Contributions - Call ResponsePolice RecyclingRecycling FeesSale of Abandoned VehiclesSoil Import/Export Permit ApplicationSolar Renewable Energy CreditsSpecs and Plans - Bid DocumentsTax Sale Premium CostTownship Auction ProceedsVending Machine CommissionVerizon Annual Franchise FeeVerizon Cell Tower RentalBudget Appropriation RefundsMiscellaneous

A-2

BALANCE ACCRUED CASHDEC. 31,2010 2011 RECEIPTS

$ $ 3,596.21 $ 3,596.21 $14,299.34 14,299.342,000.00 2,000.00

477,398.04 477,398.0444,572.19 44,572.1911,279.88 11,279.8811,250.00 11,250.0036,452.17 36,452.17128,219.96 128,219.96

77.86 77.864,552.00 4,552.004,440.00 4,440.003,849.90 3,849.90

226,431.79 226,431.7933,840.00 33,840.006,050.00 6,050.004,680.00 4,680.009,755.00 9,755.00

70,510.52 70,510.5252,190.33 52,190.33

559.56 559.561,906.23 1,906.23

70,798.62 70,798.624,508.64 4,508.64

47,213.97 47,213.97

1,270,432.21 1,270,432.21

$ 28,429,720.98 $28,429,720.98

A Reserve A-4

Exhibit - A-I 0Page 2 of2

BALANCEDEC. 31,2011

A


Increased by:Cash Receipts

Decreased by:Transfer to Taxes Receivable


SCHEDULE OF PREPAID TAXES

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A

A-4

A-7

A

Exhibit - A-II

$1,377,316.12

2,124,746.74

3,502,062.86

1,377,316.12

$2,124,746.74

Exhibit - A-12

SCHEDULE OF INTERFUNDS RECEIVABLE

Developer's Animal Assessment Other General WaterEscrow Control Trust CDBG Trust Capital Operating

REF. Total Fund Fund Fund Fund Fund Fund Fund

Balance - December 31, 2010 A $150,206.87 $304.75 $18,760.00 $120,322.14 $2,934.80 $6,238.92 $1,646.26

Increased by:Statutory Excess Reserve A-I 180,292.00 180,292.00Cash Disbursements A-4 1,011,870.16 7,210.51 100.41 38,250.00 966,309.24

1,342,369.03 7,515.26 180,392.41 18,760.00 158,572.14 2,934.80 6,238.92 967,955.50

Decreased by:Cash Receipts A-4 1,281,403.33 7515.26 180,292.00 120,322.14 2,934.80 2,584.66 967,754.47

Balance - December 31, 2011 A $60965.70 $100.41 $18760.00 $38,250.00 $3654.26 $201.03

.oN

Exhibit - A-13

SCHEDULE OF INTERFUNDS PAYABLE

Other Federal &Trust Sewer Operating State Grant

REF. Total Fund Utili!):: Fund Fund

Balance - December 31, 2010 A $1,204,513.26 $329.53 $1,204,183.73

Increased by:Open Space Tax A-1,A-2 713,954.93 713,954.93Grants Receivable Cancelled A-I 960,740.45 960,740.45

2011 Grant Fund Appropriations A-3 1,935,195.86 1,935,195.86

Cash Receipts A-4 8,053,419.90 3,455.77 8,049,964.13

Grants Receivable A-4 1,907,449.62 1,907,449.62

Grants Unappropriated A-4 170,529.60 170,529.60

Public Defender Fees A-14 26,599.26 26,599.26

13 767 889.62 744009.96 8.049964.13 4973915.53

14,972,402.88 744,009.96 8,050,293.66 6,178,099.26

\0Decreased by:

(J.J Grants Appropriated Canceled A-I 909,322.57 909,322.57

Realized as Revenue - 2011 Budget A-2 1,935,195.86 1,935,195.86

Cash Disbursed by Current Fund A-4 10,261,655.23 713 014.86 8,049,732.55 1,498,907.82

13,106,173.66 713,014.86 8,049,732.55 4,343,426.25

Balance - December 31, 2011 A $1,866,229.22 $30,995.10 $561.11 $1,834,673.01

ExhibitA-14CURRENT FUND

SCHEDULE OF CHANGES IN VARIOUS RESERVES

Transfer from/(to) Cash Cash Due toDecember 31,2010 Budget Receipts Disbursements Trust Fund December 31, 2011

Reserve for:Green Acres Debt $ 377,741.65 $ 377,741.65Maintenance of Free Public Library 22,408.30 46,067.00 (50,832.90) 17,642.40Public Defender Fees 29,118.28 18,239.50 (20,758.52) (26,599.26)Police & Firemen Pension 1,535.40 1,535.40Advanced Medical Claims 1,660,130.48 1,660,130.48New Jersey Environmental InfrastructureLoans Payable 104,953.43 4,608.78 109,562.21

Condominium Services 110,000.00 110,000.00Length of Service Award Program (LOSAP) 100,000.00 100,000.00

Total $ 2,195,887.54 $ 210,000.00 $ 68,915.28 $ (71,591.42) $ (26,599.26) $ 2,376,612.14

Ref. A A-3 A-4 A-4 A-13 A

\.0t+>-

Exhibit - A-15SCHEDULE OF 2010 APPROPRIATION RESERVES Page 1 of6

BALANCE 2010 BALANCE AFTER PAID OR BALANCEDEC. 31,2010 ENCUMB MODIFICATION CHARGED LAPSED

GENERAL GOVERNMENT

Office of the MayorSalaries and Wages $ 11.68 $ $ 11.68 $ $ 11.68Other Expenses 123.57 239.80 363.37 161.20 202.17

Municipal CouncilSalaries and Wages 38.34 38.34 38.34Other Expenses 1,768.27 121.50 1,889.77 204.00 1,685.77

Office of the Township ClerkSalaries and Wages 15,074.27 15,074.27 15,074.27Other Expenses 23,491.77 1,385.65 19,877.42 11,794.54 8,082.88

DEPARTMENT OF ADMINISTRATION

Office of the Business AdministratorSalaries and Wages 26,615.83 26,615.83 2,244.85 24,370.98

-c Other Expenses 12,886.53 3,651.78 11,538.31 3,651.78 7,886.53CJl Division of Communication

Salaries and Wages 24,675.38 24,675.38 369.68 24,305.70Other Expenses 6,477.70 129.00 6,606.70 129.00 6,477.70

Division of Central PurchasesSalaries and Wages 34,550.92 34,550.92 980.72 33,570.20Other Expenses:Postage 8,917.63 8,917.63 1,137.47 7,780.16Centralized Stores 11,287.46 5,283.51 16,570.97 11,465.49 5,105.48Miscellaneous Other Expenses 428.50 275.00 703.50 275.00 428.50

Division of PersonnelSalaries and Wages 34,439.28 34,439.28 4,372.38 30,066.90Other Expenses 21,454.98 4,686.21 46,831.19 33,811.31 13,019.88

DEPARTMENT OF LAW

Office of the DirectorSalaries and Wages 9,039.93 9,039.93 9,039.93Other Expenses 136,891.31 6,829.08 143,720.39 143,720.39

DEPARTMENT OF FINANCEOffice of the DirectorSalaries and Wages 25,966.23 25,966.23 25,966.23Other Expenses 1,404.39 1,350.00 2,754.39 1,350.00 1,404.39Other Expenses -Audit Services 115,000.00 115,000.00 105,000.00 10,000.00

Exhibit-A-15SCHEDULE OF 2010 APPROPRIATION RESERVES Page 2 of6

BALANCE 2010 BALANCE AFTER PAID OR BALANCEDEC. 31, 2010 ENCUMB MODIFICATION CHARGED LAPSED

DEPARTMENT OF FINANCE (cont'd.)

Division of Accounts and ControlsSalaries and Wages $ 13,176.14 $ $ 13,176.14 $ $ 13,176.14Other Expenses 192.00 3,642.67 9,834.67 8,717.67 1,117.00Other Expenses - Data Processing 23,555.00 4,015.00 22,570.00 4,015.00 18,555.00

Division of Custody and DisbursementsSalaries and Wages 19,598.65 19,598.65 1,004.56 18,594.09Other Expenses 636.71 636.71 636.71

Division of Tax CollectionsSalaries and Wages 37,651.57 37,651.57 461.50 37,190.07Other Expenses 61,953.71 9,244.92 36,198.63 9,364.06 26,834.57

Division of AssessmentSalaries and Wages 1,953.07 1,953.07 1,534.72 418.35Other Expenses 3,377.37 15,800.00 19,177.37 9,415.40 9,761.97Other Expenses - Legal TaxAppeals 119,187.41 28,182.00 147,369.41 147,369.41

<o Division of Revenue Collection0\Salaries and Wages 42,152.19 42,152.19 42,152.19Other Expenses 1,911.04 1,911.04 1,911.04

DEPARTMENT OF RECREATION & PARKS

Division of RecreationSalaries and Wages 21,946.15 21,946.15 1,744.28 20,201.87Other Expenses 51,015.68 75,805.30 126,820.98 122,137.64 4,683.34

Division of Public BuildingsOther Expenses:Telephones 17,765.90 10,114.14 27,880.04 24,461.64 3,418.40Heat, Light and Power 139,804.90 87,892.85 247,007.75 246,989.31 18.44

Division of ParksSalaries and Wages 94,802.73 94,802.73 939.06 93,863.67Other Expenses 8,028.73 14,167.84 22,196.57 17,600.27 4,596.30

Exhibit-A-15SCHEDULE OF 2010 APPROPRIATION RESERVES Page 3 of6


DEPARTMENT OF HEALTH ANDHUMAN RESOURCES

Division of HealthOther Expenses $ 50,291.81 $ 8,119.95 $ 58,411.76 $ 10,321.98 $ 48,089.78

Division of Human ResourcesSalaries and Wages 4,657.46 4,657.46 4,657.46Other Expenses 450.00 450.00 450.00

Division of Senior Citizen ServicesSalaries and Wages 5,042.92 5,042.92 1,277.56 3,765.36Other Expenses 11,343.00 5,680.77 12,023.77 949.40 11,074.37

Community ShuttleSalaries and Wages 5,143.18 5,143.18 5,143.18Other Expenses 25,463.55 4,541.17 24,004.72 5,077.76 18,926.96

DEPARTMENT OF PUBLIC SAFETY\0'1 Division of Police

Salaries and Wages:Police (99,067.40) 99,067.40Other Expenses:Police 40,992.42 95,325.80 131,318.22 121,566.90 9,751.32Emergency Dispatch - 911 136,349.19 163,619.80 249,968.99 237,574.17 12,394.82Police Vehicle Maintenance 111,576.52 23,111.38 109,687.90 24,890.64 84,797.26

Uniform Fire Safety ActOther Expenses 6,247.30 562.00 6,809.30 562.00 6,247.30

Division of FireOther Expenses:Fire 24,491.97 66,502.79 90,994.76 (60,797.11) 151,791.87Fire Hydrant Service 20,199.35 103,199.35 103,199.35Aid to Volunteer Fire Companies 999.44 109,000.56 110,000.00 109,000.56 999.44

Exhibit -A-15SCHEDULE OF 2010 APPROPRIATION RESERVES Page 4 of6


DEPARTMENT OF PUBLIC WORKS

Office of the DirectorSalaries and Wages:Municipal Garage $ 72,193.22 $ $ 72,193.22 $ $ 72,193.22Vehicle Impound Area 538.38 538.38 538.38

Other Expenses:Municipal Garage 36,107.37 7,985.84 29,093.21 8,561.96 20,531.25Fuels & Lubricants for Municipally 12,009.76 102,605.20 146,014.96 133,444.28 12,570.68Vehicle Impound Area 2,204.42 753.67 2,958.09 753.67 2,204.42Street Lighting 156,974.76 101,256.64 258,231.40 258,230.62 0.78

Division of StreetsSalaries and Wages 44,591.88 44,591.88 44,591.88Other Expenses 11,959.84 93,386.04 125,845.88 108,905.81 16,940.07

Division of Public BuildingsOther Expenses 2,179.82 40,599.45 57,879.27 53,961.53 3,917.74

\0 Division of Sanitation00 Salaries and Wages:

Street Cleaning and Refuse and Garbage Collection 164,969.62 169.12 165,138.74 1,341.38 163,797.36Other Expenses:Street Cleaning and Refuse and Garbage Collection 47,381.99 5,585.54 37,967.53 37,967.53

Public Defender (P.L. 1997,c.256)Salaries and Wages 29,000.00 29,000.00 29,000.00Other Expenses 2,000.00 2,000.00 2,000.00

DEPARTMENT OF COMMUNITY DEVELOPMENT

Salaries and Wages:Division of Planning and Zoning 77,115.14 77,115.14 705.37 76,409.77Community Development 5,000.00 5,000.00 5,000.00Rent Control Board 579.78 579.78 579.78Division of Engineering 71,294.86 71,294.86 4,835.69 66,459.17

Other Expenses:Division of Planning and Zoning 947.20 947.20 947.20Planning Board 10,089.33 3,700.00 13,789.33 10,152.22 3,637.11Zoning Board Adjustment 15,574.23 3,630.67 14,204.90 8,929.77 5,275.13Rent Control Board 7,500.00 2,500.00 2,500.00Environmental Commission 20.00 20.00 20.00Division of Engineering 102,665.79 13,906.12 106,571.91 13,996.12 92,575.79

Exhibit-A-15SCHEDULE OF 2010 APPROPRlATION RESERVES Page 5 of6


UNCLASSIFIED

Insurance:Group Insurance Plan for Employees $ 2,486,323.96 $ $ 2,486,323.96 $ 876,900.05 $ 1,609,423.91Other insurance and Surety bonds 51,901.75 5,396.40 57,298.15 20,467.06 36,831.09

First Aid Organizations-Aid and MaintenanceOther Expenses 105,000.00 105,000.00 105,000.00

Emergency Management ServicesOther Expenses 9,373.60 5,956.47 15,330.07 10,956.47 4,373.60Ethics Commission 9,358.00 4,358.00 4,358.00Condominium Services 110,000.00 110,000.00 110,000.00Celebration of Public Events 17,601.15 17,601.15 17,601.15Municipal CourtSalaries and Wages 52,648.66 52,648.66 52,648.66Other Expenses 64,979.32 597.27 65,576.59 1,106.14 64,470.45

Uniform Construction Code\.0 Edison Constr. Enforcing Agency:\.0

Salaries and Wages 3,720.31 3,720.31 1,579.21 2,141.10Other Expenses 312,309.22 4,187.37 316,496.59 18,373.54 298,123.05

Total Operations Within "CAPS" 5,708,614.39 1,138,996.27 6,847,610.66 3,157,146.56 3,690,464.10

Contingent 35,685.65 5,075.00 40,760.65 35,963.23 4,797.42

Total Operations Including Contingent Within "CAPS" 5,744,300.04 1,144,071.27 6,888,371.31 3,193,109.79 3,695,261.52

DEFERRED CHARGES AND STATUTORYEXPENDITURESMUNICIPAL WITHIN "CAPS"

Statutory Expenditures:Contribution to:Public Employees' Retirement System 18,194.00 18,194.00 18,194.00Social Security System (O.A.S.I.) 72,965.93 72,965.93 72,965.93Police and Firemen's Retirement System 56092.00 56,092.00 56,092.00

Total Deferred Charges and Statutory ExpendituresMunicipal Within "CAPS" 147,251.93 147,251.93 147,251.93

Total General Appropriations for MunicipalPurposes Within "CAPS" 5:891,551.97 1,144,071.27 7,035,623.24 3,193,109.79 3,842,513.45

SCHEDULE OF 2010 APPROPRIATION RESERVES

OTHER OPERATIONS EXCLUDED FROM "CAPS"

Maintenance of Free Public LibraryDivision of FireEMT ServicesSalaries and WagesOther Expenses

Length of Service Award Program (LOSAP)Other Expenses

Total Other Operations Excludedfrom "CAPS"

Total General Appropriations $

Ref."""'00

Appropriation Reserves AReserve for Encumbrances A-18

Cash DisbursementsAccounts Payable

A-4A-20

BALANCEDEC. 31, 2010

$ 2,366.62 $

169,378.9249,767.50

100.000.00

321,513.04

2010ENCUMB

101,961.30 $

37,950.32

139,911.62

A

6,213,065.01 $ 1,283,982.89 $

A-18

BALANCE AFTERMODIFICATION

104,327.92 $

169,378.9287,717.82

100,000.00

461424.66

PAID ORCHARGED

102,383.58 $

3,340.3557,244.14

99,000.00

261968.07

Exhibit-A-15Page 6 of6

BALANCELAPSED

1,944.34

166,038.5730,473.68

1000.00

199456.59

7,497,047.90 $ 3,455,077.86 $ 4,041,970.04

A-I

$ 6,213,065.011,283,982.89

$ 7,497,047.90

$ 3,309,333.02145744.84

$ 3,455,077.86


Decreased by:RefundsApplied to Taxes Receivable

Applied to Taxes Receivable



Increased by:2011 Budget Appropriation

Decreased by:State Tax Appeal Judgment Refunds


SCHEDULE OF TAX OVERPAYMENTS

A

A-4A-7

349,079.0735,391.22

A-7

A

SCHEDULE OF RESERVE FOR TAX APPEALS

A

A-3

A-4

A

-101-

Exhibit - A-16

$443,738.07

384,470.29

$59,267.78

Exhibit - A-17

$2,450,000.00

1,500,000.00

3,950,000.00

2,450,000.00

$1,500,000.00

Exhibit - A-18

SCHEDULE OF RESERVE FOR ENCUMBRANCES

CURRENTFUND

GRANTFUND

Balance - December 31,2010 A $1,333,772.58 $428,744.07

Increased by:Charges to:2011 Budget Appropriations A-3State & Federal Grant Appropriations A-26

Decreased by:Reserve for Road Projects A-20Transferred to 2011 Approp. Reserves A-15Transferred to State & Federal Grant Appropriations A-26

807,702.511,413,415.94

2,141,475.09 1,842,160.01

49,789.691,283,982.89

428,744.07

1,333,772.58 428,744.07

$807,702.51 $1,413,415.94Balance - December 31, 2011 A

Exhibit - A-19

SCHEDULE OF RESERVE FOR SPECIAL GARBAGE DISTRICT

REF.

Balance - December 31,2010 A $4,361,643.41

Increased by:2011 Garbage District Tax Levy A-l,A-2,A-7 8,983,875.78Added and Omitted Taxes A-l,A-2,A-7 33,581.23

9,017,457.01

13,379,100.42Decreased by:Payments A-4 8,861,851.00


-102 -

SCHEDULE OF ACCOUNTS PAYABLE

Balance - December 31, 2010 A

Increased by:Cash Received - State ofNJ BOCA FeesTransfer from 20 I0 Appropriation ReservesTransfer from Reserve for Road Projects

A-4A-I5A-18

Decreased by:Prior Year Payables CanceledCash Disbursements

A-IA-4


171,037.00145,744.8449,789.69

315,392.14174,386.82

SCHEDULE OF DUE FROM EDISON SHELTERED WORKSHOP

Balance - December 31,2010 A

Increased by:Cash Disbursements A-1, A-4

Decreased by:Cash Receipts A-l,A-4


-103 -

Exhibit - A-20

$454,884.04

366,571.53

821,455.57

489,778.96

$331,676.61

Exhibit - A-21

$62,981.83

5,422.62

68,404.45

68,404.45

$0.00

CURRENT FUNDSCHEDULE OF TAXES PAYABLE

Dec. 31, Taxes Cash2010 Levied Disbursements

County - General $46,740,601.30 $46,740,601.30

County - Open Space 4,589,858.26 4,589,858.26

County - Added & Omitted 165,699.63 165,699.63

Local District School Taxes 186,686,376.00 186,686,376.00

Total $238,182,535.19 $238,182,535.19

Ref. A-1,A-2,A-7 A-4

-104 -

Exhibit A-22

Dec. 31,2011

A

Overexpenditures of Appropriations

Special Emergency - Accrued Sick

Special Emergency - Tax Appeals

I

......&iI

SCHEDULE OF DEFERRED CHARGES

BALANCEDEC. 31,2010

$ 829,052.76

RESULTS OFCY 2011

$1,270,000.00

4,388,541.63

$ 829,052.76 $ 5,658,541.63

A A-3

RAISED IN REFUNDED BYCY 2011 BUDGET ORDINANCE

$ 829,052.76

$4,388,541.63

$ 829,052.76 $ 4,388,541.63

A-3 A-4

Exhibit - A-23

BALANCEDEC. 31,2011

$

1,270,000.00

$ 1,270,000.00

A

Exhibit - A-24Page lof2

SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLESTATE AND FEDERAL GRANTS FUND

TRANSFERREDBALANCE 2011 FROM BALANCEDEC. 31, BUDGET UNAPPROP. CASH CANCELLED/ DEC. 31,

PROGRAM 2010 REVENUE GRANTS RECEIPTS ADJUSTMENT 2011

Aggressive Driving Enforcement Campaign $ 400.00 $ $ $ $ $ 400.00Bias Prevention & Education Grant 5,000.00 5,000.00Edward Byrne Grant - JAG 163,108.00 68,298.00 163,108.00 68,298.00Edward Byrne Grant - 2009 39,556.00 39,556.00Edward Byrne Grant - Local Solicitation 11,740.00 11,740.00CDBG - Recovery Act of2009 Program 51,932.03 39,273.45 12,658.58Cablevision Equipment Purchase Grant 10,000.00 10,000.00Clean Communities 144,149.14 136,606.41 7,542.73Cooperative Housing Inspection Program 83,621.00 38,173.00 45,448.00Drunk Driving Enforcement Grant 38,592.49 38,592.49Edison Sam's Club Donation 500.00 500.00Hepatitis B Inoculations Grant 5,000.00 5,000.00Homeland Security Grant - Buffer Zone Protection Program 56,620.40 56,616.78 3.62Jewish Renaissance Foundation - Summer Employment Prog 4,146.52 4,146.52

I-' Solid Waste Recycling Grant 259,194.81 247,481.77 11,713.0400\ Middlesex County LINCS 3,000.00 3,000.00

Middlesex County Narcotics Grant 12,000.00 12,000.00Middlesex County Oak Crest Swim Club Grant 100,000.00 100,000.00Middlesex County Strengthening Families Booster Prog 5,000.00 5,000.00Municipal Alliance Grant 84,064.00 3,908.02 80,155.98Municipal Alliance Summer Outreach Program 10,000.00 20,000.00 10,000.00 20,000.00Municipal Alliance ImpJ of After-School Programs 7,000.00 7,000.00Municipal Alliance Program - Youth Service Commission 7,000.00 6,300.00 700.00Municipal Alliance Program - Competitive RFA Grant 5,000.00 5,000.00NJ Community Shuttle Grant 30,000.00 30,000.00NJ DOD Community Planning Assitance 47,908.00 15,119.00 32,789.00NJ DOT Roxy Ave Resurfacing 250,000.00 187,500.00 62,500.00NJ DOT - New Dover Road Resurfacing 75,916.43 75,916.43NJ DOT - Municipal Road Aid - Feather Bed Lane 301,132.00 301,132.00NJ DOT - Highway Safety Fund Grant 68,093.91 68,093.91NJ Health Officers' Association - HINI Grant 10,000.00 10,000.00NJ Department of Health - Hepatitis 5,000.00 5,000.00Neighborhood Preservation Program - Balanced Housing 27,795.00 27,795.00Over the Limit and Under Arrest Grant 925.00 925.00Pedestrian Education & Enforcement Grant 2010 3,000.00 3,000.00Public Archives and Records Infras. Support Grant 40,178.06 15,117.00 25,061.06

Exhibit - A-24Page 2 of2

SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLESTATE AND FEDERAL GRANTS FUND

TRANSFERREDBALANCE 2011 FROM BALANCEDEC. 31, BUDGET UNAPPROP. CASH CANCELLED/ DEC. 31,

PROGRAM 2010 REVENUE GRANTS RECEIPTS ADJUSTMENT 2011

Empire Recycling - Edison Environmental Commission $ $ 1,000.00 $ $ $ 1,000.00 $Safe and Secure Communities Program 30,000.00 60,000.00 30,000.00 60,000.00Smart Growth Cross Acceptance 31,000.00 31,000.00State Livable Communities Local Library Aid Grant 45,000.00 45,000.00Tobacco Settlement Grant 6,711.00 6,711.00US Dept of Energy AFG - FEMA Grant 341,696.00 245,924.00 95,772.00US DOE - EECBG Program 954700.00 749,700.00 756000.00 749,700.00 198,700.00

$ 2,339,481.93 $ 1,935,195.86 $ 251,389.79 $ 1,907,449.62 $ 960,740.45 $ 1,155,097.93

Ref. A A-2,A-25 A-27 A-25 A-25 A

SCHEDULE OF DUE FROM CURRENT FUNDSTATE AND FEDERAL GRANTS FUND


Increased by:2011 Budgeted Grant AppropriationsGrant Proceeds Deposited to Current FundGrants Receivable CanceledUnapprop. Grants Deposited to Current Fund

Decreased by:2011 Budgeted Grant RevenuesGrants Expended by Current FundGrants Appropriated Canceled


-108 -

A

A-26A-24A-24A-27

1,935,195.861,907,449.62960,740.45170,529.60

A-24A-26A-26

1,935,195.861,498,907.82909,322.57

A

Exhibit - A-25

$1,204,183.73

4,973,915.53

6,178,099.26

4,343,426.25

$1,834,673.01

Exhibit - A-26SCHEDULE OF RESERVE FOR STATE AND Page I of2

FEDERAL GRANTS - APPROPRIATED

BALANCE TRANSFERRED BALANCEDEC. 31, FROM 2011 12/31110 PAID OR 12/31/11 DEC. 31,

PROGRAM 2010 BUDGET ENCUMBRANCE CHARGED ENCUMBRANCE CANCELED 2011

Alcohol Education and Rehabilitation Fund $5,561.82 $5,561.82Bias Prevention & Education Grant 5,000.00 5,000.00Body Armor Replacement Fund - 2005 8,543.30 $2,151.00 $10,694.30Body Armor Replacement Fund - 2009 19,236.64 1,854.07 21,090.71Body Armor Fund - 2009 5,188.24 5,188.24Body Armor Fund - 2010 15,244.39 3,996.37 11,248.02Bulletproof Vest Partnership Act 10,740.49 10,740.49 0.00Cablevision Equipment Purchase Grant 2,263.93 2,263.93Clean Communities Program(SFY2007) 64.22 64.22(CY2010) 28,625.18 4,871.93 31,733.94 38.00 1,725.17(CY2011) 144,149.14 96,699.54 6,661.50 7,542.73 33,245.37

Central Jersey JIF - Safety Incentive Grant 750.00 750.00Community Develop Block Grant - Recovery Act of2009 9,833.23 42,098.80 39,273.45 12,658.58Conservation Resources Inc Grant 26,928.92 28,722.60 30,582.60 2,640.00 22,428.92Dismal Swamp Stewardship Contribution 50,000.00 50,000.00Drunk Driving Enforcement Fund 67,534.94 666.00 5,234.66 26,981.71 35,984.57Edison Pedestrian Education & Enforcement Grant 10,000.00 10,000.00

I-' Edison Sam's Club 2,500.00 930.35 1,569.650 Edward Byrne Memorial Justice Assistance Grant - 2007 115.00 115.00<o

Edward Byrne Memorial Justice Assistance Grant - 2008 121.85 121.85Edward Byrne Grant (JAG) - 2009 163,108.00 163,108.00Edward Byrne Grant Local Solicitation 626.62 626.62Edward Byrne Grant (JAG) - 2010 37,897.00 36,075.67 1,821.33Edward Byrne Grant (JAG) - 2011 30,401.00 30,401.00Emergency Management Assistance Grant 5,000.00 5,000.00Empire Recycling - Edison Environmental Comm 1,000.00 1,000.00 145.19 1,000.00 854.81Enhanced 9-1-1 Equipment Grant 76,382.89 14,744.25 61,638.64Enhanced 9-1-1 General Assistance Grant 92,096.00 1,765.00 90,331.00Exercise Support Program FY2008 6,887.69 1,100.00 7,085.70 901.99Hepatitis B Inoculations 470.00 4,530.00 3,119.08 1,880.92Homeland Security Grant - Buffer Zone Protection Program 367.70 39,261.62 39,261.62 $3.62 364.08InfluenzaA-HINl Grant 10,000.00 9,274.00 8,582.42 8,000.00 2,691.58Jewish Renaissance Found. - Summer Employment Prog 6,732.05 206.00 6,526.05Keep Middlesex Moving 5,902.00 5,902.00Lead Identification Field Testing Grant 69.88 69.88Local Law Enforcement Block Grant - Technology 43,842.71 43,842.71Middlesex County Art Grant 310.00 310.00Middlesex County Lake Papaiannie Grant 267.76 8,376.84 8,644.60Middlesex County Memorial Tower 375,000.00 375,000.00Middlesex County Narcotics Grant 12,000.00 12,000.00Middlesex County Oak Crest Swim Club Grant 687,625.00 100,000.00 12,375.00 13,265.00 637,300.00 149,435.00Middlesex County Pedestrian Bike Grant 9,586.92 1,643.55 7,943.37Middlesex County Recycling Enhancement Grant 9,444.13 9,444.13

Exhibit - A-26SCHEDULE OF RESERVE FOR STATE AND Page 2 of2

FEDERAL GRANTS - APPROPRIATED

BALANCE TRANSFERRED BALANCEDEC. 31, FROM 2011 12/31110 PAID OR 12/31/11 DEC. 31,

PROGRAM 2010 BUDGET ENCUMBRANCE CHARGED ENCUMBRANCE CANCELED 2011

Middlesex County SEGIF Grant 13,450.00 13,450.00

Middlesex County Strengthening Families Booster Program 1,113.48 287.47 127.60 159.87 1,113.48

Municipal Alliance Program(SFY2006) 4,330.03 4,330.03

(SFY2008) 300.75 300.75

(SFY2009) 328.70 1,323.99 702.32 674.07 0.47 275.83

(SFY2010) 2.41 12,098.74 10,707.70 1,311.27 82.18

(SFY2011) 84,064.00 79,683.50 4,379.99 0.51 0.00

Municipal Alliance Summer Outreach 20,000.00 2,050.15 2,050.15 20,000.00

Municipal Alliance Implementation of After-School Programs 7,000.00 7,000.00

Municipal Alliance Program - Youth Services Commission 7,000.00 7,000.00

Municipal Alliance - Competitive RFA Grant 5,000.00 5,000.00

NJ DOD - Community Planning Assistance 14,264.30 32,385.00 13,861.00 32,788.30

NJ Department of Health - Hepatitis 5,000.00 5,000.00

NJ DOT Discretionary Aid- New Dover Road Resurfacing 144,286.59 144,286.59

NJDHS - Buffer Zone Protection 11,556.00 8,259.53 3,296.47

NJ Community Shuttle Grant 2,289.36 2,289.36

f-I NJ Transit Grant 20,000.00 20,000.00f-I Neighborhood Preservation Program 28,269.78 38,729.98 22,340.00 44,659.760

Non-Public School Nursing(SFY2007) 350.17 350.17

(TY2009) 27.84 27.80 0.04

OJJDP Title lIB Formula Grant 4,799.11 4,799.11

Pandemic Flu Grant 6,579.36 6,579.36

Public Archives and Records Infras. Support Grant 2,428.43 2,428.43

Public Health Priority Funding Act of 1977(SFY2008) 5,513.75 5,513.75

(SFY2009) 37.12 1,000.00 1,000.00 37.12

(CY2010) 20,030.00 16,890.39 3,139.61

Safe and Secure Communities Program(CY2011) 60,000.00 60,000.00

Safe Corridors Grant 5,282.97 68,093.91 930.00 63,388.00 10,918.88

Smart Growth Cross Acceptance Grant 23,819.16 23,819.16

Solid Waste Recycling Grant 1,799.69 259,194.81 4,866.00 77,288.81 11,713.04 176,858.65

Stormwater Management Grant 10,309.00 10,309.00

U.S. Fire Prevention & Safety Grant 1,422.73 1,422.73

US Dept of Homeland Security AFG - FEMA Grant 341,696.00 243,754.46 2,169.60 95,771.94

U.S. DOE - EECBG Program 953744.30 749,700.00 5 116.15 2033.79 649462.25 749,700.00 307364.41

$2,861,631.80 $1935,195.86 $428744.07 $1 498,907.82 $1,413 415.94 $909,322.57 $1 403 925.40

Ref. A A-3,A-25 A-18 A-25 A-18 A-25 A

Exhibit - A-27

SCHEDULE OF RESERVE FOR STATEANDFEDERAL GRANTS - UNAPPROPRIATED


PROGRAM 2010 INCREASE DECREASE 2011

ANJEC SGPA ERI Project Grant $10,000.00 $10,000.00Body Armor Fund 20 II 16,007.76 16,007.76CJ Joint Insurance Fund - Safety Incentive 1,000.00 1,000.00Local Law Enforcement Block Grant 206.63 206.63MCIA 2009 Recycling Grant $98,899.00 98,899.00Middlesex County Art Grant 750.00 750.00Middlesex County Narcotics Grant 3,000.00 3,000.00Municipal Alliance Grant 3,908.02 3,111.31 3,908.02 3,111.3 ISmart Growth Cross Acceptance Grant 15,000.00 15,000.00Solid Waste Recycling Grant 148,582.77 121,453.90 148,582.77 121,453.90

$25 I ,389.79 $170,529.60 $251,389.79 $170,529.60

Ref. A A-25 A-24 A

Exhibit - A-28

SCHEDULE OF UNALLOCATED RECEIPTSSTATEAND FEDERAL GRANTS FUND

Balance - December 31, 2010 A $1,900.00

Balance - December 3 I, 20 I 1 A $1,900.00

-111-

Trust Fund

-112 -

SCHEDULE OF TRUST CASH AND INVESTMENTS - TREASURER Exhibit - B-2Page lof2

HOUSING AND COMMUNITYDEVELOPMENT ACT LANDFILL CLOSURE - LOCAL

ANIMAL CONTROL FUND TRUST-OTHER FUND OF 1974 ESCROW FUND

REF.

Balance - December 31, 2010 B $155,129.64 $19,984,458.l4 $38,806.88 $439,715.64

Increased by Receipts:Collector B-3 35,395.28Accts. Receivable - U.S. Dept. ofHousing and Urban Development B-8 2,175,184.28

Reserve for Open Space B-9 830,320.04Municipal Animal Shelter Fees B-13 96,159.85Other Fees - Interest Earned B-13 1,114.14Escrow Funds B-14 19,850.00Other Reserves B-15 26,415,220.35Refunds on Redemp. of Tax Sale Certif. B-16 5,520,996.05Refunds on Redemp. of Tax Sale Premo B-16 1,652,800.00Reserve For Off Duty Public Safety B-16 1,987,340.74Landfill Closure - Local Escrow Fund B-16 152,116.38

, Interfunds B-17,B-18 38250.00

I-'I-' 132,669.27 36426,527.l8 2,213,434.28 152 116.38CJ.)

287,798.91 56,410,985.32 2,252,241.16 591,832.02

Decreased by Disbursements:Reserve for Open Space B-9 711,440.03State Dog License Fees B-11 4,054.60Expenditures Under R.S. 4:19.11 B-13 46,468.33Escrow Funds B-14 15,091.04

Other Reserves Disbursed B-15 26,758,370.44Refunds on Redemp. of Tax Sale Certif. B-16 4,982,426.26Refunds on Redemp. of Tax Sale Premo B-16 512,704.58Reserve For Off Duty Public Safety B-16 2,034,217.36Commun. Develop. Block Grant Expends. B-16 2,087,529.95

Interfunds B-17,B-18 180341.15 3874.87 120322.14

230,864.08 35,018,124.58 2,207,852.09

Balance - December 31, 20 II B $56,934.83 $21,392,860.74 $44,389.07 $591,832.02

SCHEDULE OF TRUST CASH AND INVESTMENTS - TREASURER Exhibit - B-2Page 2 of2

D.E.P. LANDFILL CLOSURE RP.U. LANDFILL CLOSURE SELF INSURANCE DEVELOPER'S ESCROWESCROW FUND ESCROW FUND TRUST FUND TRUST FUND

REF.

Balance - December 31, 20 I0 B $3,852,354.60 $10,764,909.42 $830,911.95 $1,538,808.99

Increased by Receipts:Investment Income:D.E.P. Landfill Closure Escrow Fund B-16 147,949.31RP.U. Landfill Closure Escrow Fund B-16 388,322.14

Cash Receipts - SelfInsuranceTrust Fund B-16 66,703.23

Developer's Escrow Fund Deposits B-16 416080.10

147,949.31 388,322.14 66,703.23 416,080.10

4,000,303.91 11,153,231.56 897,615.18 1,954,889.09

Decreased by Disbursements:D.E.P. Reserves For Landfill Closure B-16 24,318.08RP. U. Reserves For Landfill Closure B-16 82,248.34

I-" Payment of Insurance Claims & Costs B-16 132,891.59I-" Developer's Escrow Fund B-16 763,154.59;I::>.

Interfunds B-17,B-18 304.75

24318.08 82248.34 132891.59 763459.34

Balance - December 31, 2011 B $3,975,985.83 $11,070,983.22 $764,723.59 $1,191,429.75

Increased by:Dog Registrar

Decreased by:Paid to Treasurer

SCHEDULE OF TRUST CASH - COLLECTOR

B-7

B-2

ANALYSIS OF ASSESSMENT TRUST CASH AND INVESTMENTS

Fund BalanceDue from Trust-Other FundDue to Current Fund

BALANCEDEC 31,2010

$1,303.00(20,063.00)18,760.00

$0.00

B

-115 -

Exhibit - B-3

ANIMALCONTROL

FUND

$35,395.28

$35,395.28

Exhibit - B-4

BALANCEDEC 31,2011

$1,303.00(20,063.00)18,760.00

$0.00

B

SCHEDULE OF ASSESSMENT LIEN INTEREST AND COSTS

Balance - December 3 1, 2010 B

Balance - December 31, 2011 B

SCHEDULE OF ASSESSMENT LIENS

IMPROVEMENT DESCRIPTION

BALANCEDEC 31,20]0

Exhibit - B-5

$74.00

$74.00

Exhibit - B-6

BALANCEDEC 31,2011

57 ]966 Sanitary Sewers - Garfield, Ellis Pkwy. Area ======$9=7=.0=0======$=9=7.=00=

B

-116 -

B

Exhibit - B-7

SCHEDULE OF DUE FROM DOG REGISTRARANIMAL CONTROL FUND

Increased by:Municipal Dog Licenses B-B $35,395.28

Decreased by:Paid to Collector B-3 $35,395.28

Exhibit - B-8SCHEDULE OF ACCOUNTS RECEIVABLE

US DEPT OF HOUSING

Total

HOUSING AND OPPORTUNITIESURBAN FOR PEOPLE

DEVELOPMENT WITH AIDS

Balance - December 31, 2010 B $2,739,808.05 $1,223,631.05 $1,516,177.00

Increased by:Community Develop. Block Grant AllotmentProgram Year 2011 B-16

Housing Opportunities for People With AIDS B-16578,197.00 578,197.00

1,497,875.00 1,497,875.00

2,076,072.00 578 197.00 1497875.00

4,815,880.05 1,801,828.05 3,014,052.00

2,175,184.28 810747.39 1,364,436.89

2,175,184.28 810747.39 1364436.89

$2,640,695.77 $991080.66 $1,649,615.11

Decreased by:Cash Receipts B- 2

Balance - December 31,2011 B

-117 -

Exhibit - B-9

SCHEDULE OF RESERVE FOR OPEN SPACE

Balance - December 31,2010 B $4,323,468.26

Increased by:Cash Receipts B-2 830,320.04

5,153,788.30Decreased by:Cash Disbursements B-2 711,440.03

Balance - December 3 1, 2011 $4,442,348.27B

Exhibit - B-1 0

SCHEDULE OF RESERVE FOR ASSESSMENTS, LIENS ANDINTEREST AND COSTS

ASSESSMENT TRUST FUND

BALANCEDEC 31,2010

BALANCEDEC 31,2011

Assessment Liens:1966 Sanitary Sewers - Garfield, Ellis Pkwy. AreaSanitary Sewers - Madeline Drive Area $97.00 $97.00

Assessment Lien Interest and Costs 74.00 74.00

$171.00 $171.00

B B

-118 -

SCHEDULE OF DUE TO STATE OF NEW JERSEYANIMAL CONTROL FUND


Increased by:State Dog License Fees Collected B-13

Decreased by:Payments to State of New Jersey B-2


SCHEDULE OF RESERVE FOR ENCUMBRANCESANIMAL CONTROL FUND

REF.

Balance - December 31, 20 I0 B

Increased By:Charges to Reserve For AnimalControl Expenditures B-13


-119 -

Exhibit - B-11

$76.20

3,986.20

4,062.40

4,054.60

$7.80

Exhibit-B-12

$11,978.73

4,706.85

$16,685.58

SCHEDULE OF RESERVE FOR ANIMAL CONTROL EXPENDITURESANIMAL CONTROL FUND


Increased by:Municipal Animal Shelter FeesInterest EarnedDog and Cat Licences Fees

B-2B-2B-7

Decreased by:Expenditures Under R.S. 4: 19.11Due to State of New JerseyStatutory Excess Due to Current FundEncumbrances Payable

B-2B-l1B-18B-12


License Fees Collected:

Amount

TY 20092010

$8,321.6031,819.44

$40,141.04

Note: R.S. 4:19.11

" ..... there shall be transferred from such special account to the generalfunds of the municipality any amount then in such special account whichis in excess of the total amount paid into such special account during thelast two fiscal years next preceding."

-120 -

96,159.851,114.14

35,395.28

46,468.333,986.20

180,441.564,706.85

Exhibit - B-13

$143,074.71

132,669.27

275,743.98

235,602.94

$40,141.04

Exhibit - B-14Page 1 of4

SCHEDULE OF OTHER ESCROW FUNDSTRUST-OTHER FUND

BALANCE BALANCEDECEMBER 2011 2011 DECEMBER

31,2010 INCREASES DECREASES 31, 2011

All Purpose Management Co. $4,537.25 $4,537.25Anthony Constr. Co. 216.30 216.30Birchwood Estates (Temp. C of 0) 500.00 500.00Board of Health - Needy Families 211.00 211.00Brach (Performance Guarantee) 41,180.18 41,180.18Buchanen - Minnie Veal Center 50.00 50.00Caintree Construction Co. 3,000.00 3,000.00Center Valley Homes (Wst. Hms. Monuments) 600.00 600.00College Park Env. Investigation 4,335.00 4,335.00Concord Homes (In Lieu of Performance Bond) 775.15 775.15Conrail 5,816.40 5,816.40Constr. - Widening of Woodland Ave. 21,000.00 21,000.00Crime Prevention Fund 736.31 736.31Cyzner, Irv-escrow & grading 2,000.00 2,000.00Dan Barrie Realty (In Lieu of Perf. Bond) 951.04 951.04Dan Barrie Realty (In Lieu ofMaint. Bond) 3,057.75 3,057.75Dan Barrie (In Lieu of Bond - Nanci Terr.) 1,461.05 1,461.05Dan-Lap Realty (Dolco Pizza Site) 1,500.00 1,500.00Denwick Inc. (Temp. C of 0) 4,625.00 4,625.00Donation - Fire Department 250.00 250.00Donation - Public Library 2,500.00 2,500.00Donation - Police Department 2,500.00 2,500.00Donation - Oak Tree Pond Flag - Provident Bank 210.00 210.00Donation - Bullet Proof Vests 1,350.00 1,350.00Donation - Animal Shelter 373.00 373.00Donation - Stenukinas 35.00 35.00Donation - Fishing Derby Recreation 25.00 25.00Donation - Exxon Fire Safety Program 1,000.00 1,000.00Donation - Edison Rescue Squad - J. Keane 100.00 100.00Drummond Develop. Co. 181.10 181.10Edgewood Property 432.00 432.00Edison Manor (Monuments) 960.00 960.00Edison Tower Restoration (Pavers) 3,163.78 3,163.78Edison Tower Donation - C.Dammers 1,000.00 1,000.00Eliz. Van Sickle (Sidewalks) 1,800.00 1,800.00Farraro Constr. (Paving) 500.00 500.00Festival Donations 600.00 600.00Fire Donation - Dedicated for Fire Equip. 159.00 159.00Fire Donation - Commerce Bank 250.00 250.00Firestone Builders (In Lieu of Bond) 457.65 457.65Ford Motors - Reuse of Property 2,558.62 2,558.62Ford Motors - Environmental Escrow Funds 70,000.00 70,000.00Fred Adams (Curbs) 700.00 700.00Gash (In Lieu of Bond) 938.00 938.00Glendale Properties - Off Site Improvement 40,000.00 40,000.00Goodstanding Escrow 3,071.00 $8,150.00 7,000.00 4,221.00Graphics Materials 359.80 359.80Groveland Development (In Lieu) 242.75 242.75Guaranteed Constr-shade trees 200.00 200.00Guaranteed Constr-trees 420.00 420.00H.B. Snyder Sr. (In Lieu of Bond) 2,222.00 2,222.00Hands-On-Science 767.32 767.32Hartz Mountain 5,382.68 5,382.68Hawkeye (In Lieu ofImprov.) 6,384.00 6,384.00Health Fair Deposits 130.00 130.00Heatherwood Villas Sec. III (Monuments) 240.00 240.00

-121-


BALANCEDECEMBER

31, 2010

Heatherwood Villas (Monuments)Homeless DonationIndian Festival DepositsIrene Builder (In Lieu of Maint. Bond)J. Appezzaro Inc. (Grading, Curbs)J. Morris Constr. (In Lieu of Perf. Bond)J. Wagner - CurbingJade Dynasty (Landscaping)James Hansen (Curbs and Gutters)John Leahy-in lieu of bondJos. a. Hall (In Lieu of Bond)K. Land - Redevelopment EscrowKelliko Constr. (Monuments)Krauzers Realty - Fencing, LandscapeLenguy Constr. Co. (Paving, Trailer Removal)L'Honmedieu Donation (Van Purchase)Mathews (Improvements)Menlo Park MuseumMenlo Park Plaza-held in escrowMetroplex (Temp. C of 0 Hometown Bank)MilcsiklKalman (Site Improv., Sidewalks)Mili Develop. Corp. Phili EstatesMithilesh Metha - Escrow for 265 Wood Ave.Monument Escrow FundMorris Ind. Builders (Landscaping)Mr.Fix-it ProgramNew Durham Ind. Park (Offsite Improv.)(In Lieu of Maint. Bond)

N.J. Newsdealer Holding Co.O'Connor Mgmt. (Menlo Park-Oross)Paltuco Ind. Inc. (In Lieu of Maint. Bond)Petracca (In Lieu of Bond - Monuments)Phil Damico (Landscaping)Quality Care Before/After SchoolR. Catena - Construction Upgrade to Main St.Sal Pezzello-curbs & guttersSenior Citizens-DonationsSouth View Develop. (MonumentsSpragers/FHC Servo Inc.S. Prasa-In MemoryStacie Ann Builders (In Lieu of Maint. Bond)Summit Assoc. (Monuments)Talmadge Realty Assoc.Tax Collector Receipts-unallocatedTorsiello Constr. (Install Curbs)Vaccaro (In Lieu of Maintenance Bond)Visco-Heatherwood VillasVisco-Heatherwood Villas IVVisco-Heatherwood Villas (In Lieu of Bond)Visco - In Lieu of bondWalter Ostergaard (Sidewalks)Walmart EscrowWigwam (Woodside - Grading)Municipal Court-unallocatedMunicipal Court-unclaimed bail

$60.0015.00

1,000.00306.60600.00

14,730.00900.00250.00

1,300.008,294.403,910.008,091.04400.00500.00500.00

5,358.281,000.00210.00

4,012.5012,226.00

500.00343.30250.00

2,095.002,000.00218.35

1,910.002,280.502,825.001,020.001,086.00625.00

1,100.001,700.00

25,000.002,000.00(801.60)840.00

1,100.00300.00295.00

6,210.0025,000.00

101.001,000.00391.30120.00240.00180.00564.12300.00

1,000,000.001,300.003,188.738,150.53

-122 -

2011INCREASES

3,455.77

2011DECREASES

8,091.04


BALANCEDECEMBER

31, 2011

$60.0015.00

1,000.00306.60600.00

14,730.00900.00250.00

1,300.008,294.403,910.00

400.00500.00500.00

5,358.281,000.00210.00

4,012.5012,226.00

500.00343.30250.00

2,095.002,000.00218.35

1,910.002,280.502,825.001,020.001,086.00625.00

1,100.001,700.00

25,000.002,000.00(801.60)840.00

1,100.00300.00295.00

6,210.0025,000.00

101.001,000.00391.30120.00240.00180.00564.12300.00

1,000,000.001,300.003,188.7311,606.30


Sidewalk Waiver Fund-Abdul AzizSidewalk Waiver Fund-Alfred CackowskiSidewalk Waiver Fund - Anda BuildersSidewalk Waiver Fund - Ashkay PatelSidewalk Waiver Fund - Ashok PatelSidewalk Waiver Fund - Consolidated C.C.Sidewalk Waiver Fund - Custom Pro CorpSidewalk Waiver Fund - Dominick GuidoSidewalk Waiver Fund - Edgewood Estates BuilderSidewalk Waiver Fund - Emerald InvestSidewalk Waiver Fund - Erez ShimoniSidewalk Waiver Fund - Ferraro ConstructionSidewalk Waiver Fund - Fox & FoxxSidewalk Waiver Fund - Frank ZappiaSidewalk Waiver Fund - HawkeyeSidewalk Waiver Fund - Home PlusSidewalk Waiver Fund - Island HomeSidewalk Waiver Fund - 1. BurroSidewalk Waiver Fund - J. GrabowsiliSidewalk Waiver Fund - J. ImperialeSidewalk Waiver Fund - JC ConstructionSidewalk Waiver Fund - James KeaneSidewalk Waiver Fund - Jeffery ColemanSidewalk Waiver Fund - John RossiterSidewalk Waiver Fund - Jose CorreiaSidewalk Waiver Fund - Knock on WoodSidewalk Waiver Fund - Kula ConstructionSidewalk Waiver Fund - Leonard ConstructionSidewalk Waiver Fund - Manor HomesSidewalk Waiver Fund - M. BacalhauSidewalk Waiver Fund - M. DonatoSidewalk Waiver Fund - MBA HotelSidewalk Waiver Fund - Millenium PropertiesSidewalk Waiver Fund - Moda PaintingSidewalk Waiver Fund - N. 1st Millenium PropertiesSidewalk Waiver Fund - Nico Home ImprovementSidewalk Waiver Fund - Northside AssociatesSidewalk Waiver Fund - Paydar ConstructionSidewalk Waiver Fund - Pin Oak BuildersSidewalk Waiver Fund - R LipsonSidewalk Waiver Fund - River ViewSidewalk Waiver Fund - S. MaherSidewalk Waiver Fund - Shabco ConstructionSidewalk Waiver Fund - Suburban R. EstatesSidewalk Waiver Fund - Syed AliSidewalk Waiver Fund - V. HomesileSidewalk Waiver Fund - William GianpoloSidewalk Waiver Fund - Zemol Construction

BALANCEDECEMBER

31,2010

$7,708.006,564.009,092.003,864.003,280.003,600.0010,200.002,800.004,785.007,200.002,800.00

21,019.007,258.001,950.002,100.001,170.003,600.003,851.001,800.001,600.001,800.00

10,560.006,548.0012,790.003,807.005,300.008,645.527,200.005,120.003,610.002,592.001,200.006,852.002,550.006,400.953,200.003,648.006,340.005,840.001,800.002,790.001,200.00

31,793.553,060.006,845.004,599.006,944.0010,320.00

-123 -

2011INCREASES

8,820.00

2,880.00

2011DECREASES


BALANCEDECEMBER

31, 2011

$7,708.006,564.009,092.003,864.003,280.003,600.0010,200.002,800.004,785.007,200.002,800.00

21,019.0016,078.001,950.002,100.001,170.003,600.003,851.001,800.001,600.001,800.00

10,560.006,548.0012,790.003,807.008,180.008,645.527,200.005,120.003,610.002,592.001,200.006,852.002,550.006,400.953,200.003,648.006,340.005,840.001,800.002,790.001,200.00

31,793.553,060.006,845.004,599.006,944.0010,320.00


BAIR Develop. (Site Improvement)BSS (Site Improv.)Clara Barton Manor (Gulya - Site Improv.)Edison Constr. Co. (Site Improv.)Frederick Hill (Site Improvement)Garden St. Bldg. (Site lmprov.)Garlotti Const-site improvementGarlotti Const-site improvementGus Leontarakis-site improvLaura Estates (Site Improvements)Modular Structures (Site Improv.)Morris Compo (Site Improv.)OTRAssoc. (Site Improvement)Pribula (Site Improv.)Price Club (Site Improvements)Sudan Constr. (Site lmprov.)

TOTAL

Cash ReceiptsDue From Current Fund

B-2B-17

BALANCEDECEMBER

31,2010

$900.004,440.00

20,000.001,385.411,000.005,000.008,000.008,000.002,000.001,000.00

29,105.0015,900.0010,000.002,314.005,000.003,000.00

$1,801,751.61

B

2011INCREASES

$23,305.77

$19,850.003,455.77

$23,305.77

-124 -

2011DECREASES

$15,091.04

B-2


BALANCEDECEMBER

31, 2011

$900.004,440.00

20,000.001,385.411,000.005,000.008,000.008,000.002,000.001,000.00

29,105.0015,900.0010,000.002,314.005,000.003000.00

$1,809,966.34

B

Exhibit - B-15

SCHEDULE OF OTHER RESERVESTRUST- OTHER FUND

BALANCE BALANCEPURPOSE DEC 31,2010 INCREASES DECREASES DEC 31,2011

Washington ParkApartments $637,144.22 $ $ $637,144.22Accrued Sick Leave 1,770,000.00 1,577,119.44 192,880.56Affordable Housing 3,773,787.23 304,098.10 197,950.75 3,879,934.58Affordable Housing Loan Program 1,019,061.52 5,557.04 1,024,618.56Dedicated Municipal Alliance Funds 25,991.72 50,433.64 52,249.82 24,175.54Engineering Insp. 83,002.40 83,002.40Fall Family Spectacular 18,352.25 10,528.50 21,112.85 7,767.90Federal Forfeited Property 23,349.15 273,013.79 200.00 296,162.94Fire Escrows 1,534.00 1,534.00Fire Fines 13,951.85 8,200.00 22,151.85Law Enforcement Expenditures 86,941.38 17,256.35 11,157.00 93,040.73Park Improvements 134,961.92 56,857.15 38,605.87 153,213.20Parking Offense Adjudication Act 4,695.22 196.00 4,891.22Payroll Deductions and Contributions 550,255.84 22,425,747.23 22,203,310.02 772,693.05Performance Bonds 3,874,117.43 913,797.11 1,816,929.65 2,970,984.89Public Defender Fees 26,599.26 26,599.26Seized Assets 2,902.48 13.56 2,916.04Snow Removal 5,838.44 5,838.44Street Openings 194,567.57 24,335.00 12,078.00 206,824.57Towing Escrow 51,249.85 25,568.00 35,260.80 41,557.05Tax Lien Foreclosure Interest Trust 327,140.73 327,140.73Tree Fund 195,928.49 8,471.38 56,576.50 147,823.37Tree Planting Escrow 361,755.02 134,139.47 45,575.08 450,319.41Tower Homes Security Deposits 6,398.77 8.03 6,324.44 82.36UnemploymentCompo Claims 400,323.99 387,000.00 683,920.22 103403.77

$11,793,251.47 $26,441,819.61 $26,758,370.44 $11,476,700.64

REF. B B-2 B

Due from Current Fund B-17 $26,599.26Cash Receipts B-2 26,415,220.35

$26,441,819.61

-125 -

SCHEDULE OF CHANGES IN VARIOUS RESERVES

BALANCERef. DEC 31,2010 INCREASES

Reserve for:Housing and Commununity Development B $817,008.21 $578,197.00Housing Opportunities for People With AIDS B $1,516,177.00 1,497,875.00Deposit for Redemption of Tax Sale Premiums B 707,073.39 5,520,996.05Premiums Received at Tax Sale B 990,058.69 1,652,800.00Off-Duty Police B 345,856.92 1,987,340.74D.E.P. Landfill Closure Costs B 3,852,354.60 147,949.31Edison Landfill Closure Trust-Local B 439,715.64 152,116.38B.P.U. Landfill Closure Costs B 10,764,909.42 388,322.14Payment ofInsur. Claims B 830,911.95 66,703.23Developer's Escrow Funds B 1,538504.24 416080.10

Total $21,802,570.06 $12,408,379.95

Housing and Commununity Development B-8 $2,076,072.00~ Cash Receipts B-2 10,332,307.95tv0\

$12,408,379.95

Prior Year EncumbranceCurrent Year Encumbrance

BB

CASHDISBURSEMENTS

($723,093.06)($1,364,436.89)(4,982,426.26)(512,704.58)

(2,034,217.36)(24,318.08)

(82,248.34)(132,891.59)(763,154.59)

($10,619,490.75)

B-2

ADJUSTMENTS

$147,109.48($1,649,615.11)

($1,502,505.63)

B

$325,107.58(1,827,613.21)

($1,502,505.63)

Exhibit B-16

BALANCEDEC 31,2011

$819,221.63

1,245,643.182,130,154.11298,980.30

3,975,985.83591,832.02

11,070,983.22764,723.59

1 191429.75

$22,088,953.63

Exhibit - B-17

SCHEDULE OF INTERFUNDS RECEIVABLE

Due from Due fromTrust Other Current Fund

REF. Total Assessment Fund Trust Other

Balance - December 31, 2010 B $20,063.00 $20,063.00

Increased by:Cash Disbursements B-2 940.07 $940.07Other Escrows B-14 3,455.77 3,455.77Other Reserves B-15 26,599.26 26,599.26

30,995.10 30,995.10f-'N

Balance - December 31,2011 B $51,058.10 $20,063.00 $30,995.10'-.lI

Exhibit - B-18


Due to Due toDue to Current Fund Due to Assessment Due to Due to

Current Fund Animal Control Current Fund Trust Fund Current Fund Current FundREF. Total Assessment Fund Fund Trust Other Trust Other CDBGFund Devel0I!ers Escrow

Balance - December 31, 2010 B $162,384.69 $18,760.00 $2,934.80 $20,063.00 $120,322.14 $304.75

Increased by:Cash Receipts B-2 38,250.00 38,250.00Statutory Excess Due to Current Fund B-B 180441.56 180,441.56

218,691.56 180,441.56 38,250.00

381,076.25 18,760.00 180,441.56 2,934.80 20,063.00 158,572.14 304.75

Decreased by:Cash Disbursements B-2 303,902.84 180,341.15 2,934.80 120,322.14 304.75

303,902.84 180:341.15 2934.80 120,322.14 304.75,....N

$77:173.41 $18:760.00 $100.41 $20:063.00 $38:250.0000 Balance - December 31, 2011 B

General Capital Fund

-129 -

Exhibit - C-2

SCHEDULE OF GENERAL CAPITAL CASH AND INVESTMENTS - TREASURER

Balance - December 31,2010 $12,199,876.49

Increased by Receipts:Premium on BAN SaleInterfunds AdvancedDeferred Charges - UnfundedBond Anticipation NotesCapital Improvement FundFuture Debt Service Costs

C- 1C-5C-7C-9C-I0C-ll

1,745,926.4329,749,866.7716,540,000.007,331,485.00100,000.0087,640.00

55,554,918.20

67,754,794.69

Decreased by Disbursements:Improvement AuthorizationsInterfunds AdvancedBond Anticipation Notes

C-8C-5C-9

6,046,709.5629,752,451.437,331,485.00

43,130,645.99

Balance - December 31, 2011 C $24,624,148.70

-130 -

Exhibit - C-3

ANALYSIS OF GENERAL CAPITAL CASH AND INVESTMENTS

BALANCE BALANCEDEC. 31,2010 DEC. 31,2011

Fund Balance $ 470,359.98 $ 2,216,286.41Grants Receivable/Reserve (177,513.95) (177,513.95)Due to Current Fund 6,238.92 3,654.26Due from Free Public Library (64,178.00) (64,178.00)Capital Improvement Fund 381,281.51 481,281.51Reserve for Future DebtService Costs 2,545,698.57 2,633,338.57

Reserve for Encumbrances 2,021,854.27 1,592,725.20Excess BAN's Proceeds 124,623.29 124,623.29

CAPNO. IMPROVEMENT AUTHORIZATIONS

General Improvements:

312 Constr. of Drainage Improve. 255,340.58 300,869.14373 Amboy Ave. Revitalization Project 38,211.29 63,521.13374 Various Improvements 149,535.68 125,631.27382 Various Capital Improvements 117,043.04 265,925.74384 Amboy Avenue Revitalization 729.52 2,224.06387 Various Capital Improvements 28,473.27 221,826.11389 Various Park Improvements 185,755.67 224,588.07390 Acquisition of Open Space 748,594.45 812,800.18391 Various Capital Improvements 811,902.21 11,252.79392 Various Capital Improvements 294,679.72 294,679.72

394-403 Various Capital Improvements 2,723,087.94 2,270,710.63405 Various Improvements to Inman Ave and

Tingly Land Railroad Crossing 75,376.71 75,376.7108-1616 Various Capital Improvements 377,363.64 291,989.3109-1721 Various Roof Repairs and related improvements 324,863.91 323,483.9110-1754 Various Capital Improvements 760,554.27 471,441.3411-1773 General Refunding Bonds of 20 11 16,446,152.9311-1783 General Refunding Bonds of 20 11 - tax appeals {423882541.632

$ 12,199,876.49 $ 2426242148.70

Ref. C C

( ) Denotes Deficit

-131-

SCHEDULE OF ACCOUNTS RECEIVABLEEDISON FREE PUBLIC LIBRARY

Balance - December 31, 2010 C




Increased by:Cash Receipts C-2

Decreased by:Cash Disbursements C-2

Balance - December 31,2011 C

Exhibit - C-4

$64,178.00

$64,178.00

Exhibit - C-5

CurrentFund

$6,238.92

29,749,866.77

29,756,105.69

29,752,451.43

$3,654.26

Exhibit - C-6

SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED


Increased by:General Serial Bonds C-12

Decreased by:2011 Budget Approp. to Pay Bonds:General Serial BondsSchool Serial BondsGreen Acres Loan PayableNJ Environmental Infrastructure Loan

C-12C-13C-14C-17

21,440,000.001,095,000.00215,326.13162,975.22

Balance - December 31, 2011 -132<:

$64,556,414.66

16,540,000.00

81,096,414.66

22,913,301.35

$58,183,113.31

Exhibit - C-7Page I of2

SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATIONUNFUNDED

ANALYSIS OFBALANCE - DEC. 31 20 II

BOND UNEXPENDEDCAP DATE OF BALANCE 2011 2011 BALANCE ANTICIPATION BALANCE OFNO. IMPROVEMENT DESCRIPTION ORDINANCE DEC. 31 2010 AUTHOR. FUNDING DEC. 31 2011 NOTES EXPENDITURES IMPROV AUTH.


289 Constr. of a Comm. Ctr. & the Acquis. &Install. ofFumishings & Equip. 09/23/87 4,313.08 4,313.08 4,313.08

309 Install. of Traffic Signals - James St.at Grove Avenue 09113/89 6,532.08 6,532.08 6,532.08

311 Acquis. of Property - BI. 556, Lot 2K2 09/27/89 232.95 232.95 232.95320 Acquis. of Certain Veh. & Equip. & the

Constr. ofVar. Bldg. Improv. &Repairs & Var. Park Improv. for theDept. ofRec., Parks & Public Bldgs.& Grounds 10110/90 4,210.71 4,210.71 4,210.71

323 Acquis. of Traffic Signal-Kilmer Rd. &Truman Drive 03113191 155.94 155.94 155.94

324 Road Improv. at ihe Intersection ofBrunswick Ave. & Taylor Rd. 04/10/91 3,500.00 3,500.00 3,500.00

325 Constr. of an Addition to the WoodbridgeAve. Senior Citizens Rec. Center Bldg. 09/10/91 3,500.00 3,500.00 3,500.00

326 Constr., Reconstr. & Resurfacing- Var. Rds. 09/10/91 15,000.00 15,000.00 15,000.00,_.327 Repairs, Renovations & Improv. to Var.CJ.)

CJ.) Municipally Owned Bldgs., Groundsand Public Properties 09110/91 11,620.72 11,620.72 11,620.72

329 Design & Constr. ofMun. Landfill Improv. 12/11191 13,904.72 13,904.72 13,904.72330 Acquis. of Firefighter Apparatus & Equip. 12/26/91 247.63 247.63 247.63332 Acquis. & Install. of First Aid Squad

Communication Equip. 12/26/91 2,000.00 2,000.00 2,000.00334 Drainage Improv, - Plymouih & Liddle Aves. 12/26/91 106.79 106.79 106.79337 Traffic Improvements 06/23/92 794.00 794.00 794.00338 Traffic Improvements 11112/92 2,686.19 2,686.19 2,686.19342 Renovation of Fire Station 04/28/93 390.80 390.80 390.80343 Acquisition of Fire Prunper Trucks 04/28/93 11,982.65 11,982.65 11,982.65363 Acquis. of Property for Open Space 02/24/99 12,284.92 12,284.92 12,284.92365 Supplemental Approp. - Woodland Park Acquis. 02/24/99 1,136.00 1,136.00 1,136.00373 Amboy Avenue Revitalization Project 09/22/00 109,747.02 109,747.02 109,747.02

05115101375 Acquisition of Various Parcels of Property 05/15101 273,546.87 273,546.87 273,546.87377 Acquisition of Open Space 02/27/02 1,886.13 1,886.13 1,886.13379 Various Road Improvements 04/10102 235,370.22 235,370.22 235,370.22384 Amboy Avenue Revitalization 07/23/03 339,000.00 339,000.00 339,000.00386 Various Capital Improvements 12/22/03 202,375.00 202,375.00 202,375.00388 Acquisition of Open Space 05/12/04 220,707.60 220,707.60 220,707.60391 Various Capital Improvements 02124/05 33,006.25 33,006.25 33,006.25392 Various Capital Improvements 09/14/05 281,515.14 281,515.14 281,515.14

06/14/06 204,000.00 204,000.00 204,000.00404 Various Parcels of Land 05109/07 770,645.45 770,645.45 770,645.45405 Various Improvements to Inman Ave and

Tingly Land Railroad Crossing 09/26/07 1,050,000.00 1,050,000.00 1,050,000.00

CAPNO. IMPROVEMENT DESCRIPTION

General Improvements (Cont'd.)

08-1616 Various Capital Improvements09-1721 Various Street Improvements09-1721 Various Roof Repairs and related improvements11-1773 General Refunding Bonds of201111-1783 General Refunding Bonds of2011 - tax appeals

Local Improvements:

251 Constr. of Sidewalks Along Plainfield Ave.

Improvement Authorization - UnfundedLess: Unexpended Proceeds of BAN's Issued -Ordinance

40508-161609-1721

Exhibit - C-7Page 2 of2

SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATIONUNFUNDED

ANALYSIS OFBALANCE - DEC. 31 2011

DATE OF BALANCEORDINANCE DEC. 31 2010

2011AUTHOR.

2011FUNDING

BALANCEDEC. 31 2011

BONDANTICIPATION

NOTES

UNEXPENDEDBALANCE OF

EXPENDITURES IMPROV. AUTH.

04/28/08 3,577,106.42 3,577,106.42 2,823,731.26 753,375.16

10/28/09 643,500.00 643,500.00 643,500.0010128/09 867,500.00 867,500.00 867,500.0005/11111 18,900,000.00 16,540,000.00 2,360,000.00 2,360,000.00

12/28/11 5,000,000.00 5,000,000.00 4,388,541.63 611,458.37

09/26/84 23000.00 23000.00 23000.00

$8927 505.28 $23,900,000.00 $16540000.00 $16,287,505.28 $7206861.71 $4388541.63 $4 692101.94

Ref C C-8 C-2 C

$5,382,951.87

75,376.71291,989.31323,483.91

$4692 101.94

Exhibit - C-8SCHEDULE OF IMPROVEMENT AUTHORIZATIONS

CAP ORDINANCE BALANCE - DEC. 31 2010 20ll 12/31/10 PAID OR I213IIII BALANCE - DEC. 31 20llNO. IMPROVEMENT DESCRIPTION DATE AMOUNT FUNDED UNFUNDED AUTHORIZED ENCUMB CHARGED ENCUMB FUNDED UNFUNDED


312 Constr. of Drainage Improv. 06113/90 205,000.00(Amended 9/6/0 I) 09106/01 945,000.00 255,340.58 45,528.56 300,869.14

373 Amboy Avenue Revitalization 9122/001Project 5115/01 1,868,758.00 38,2ll.29 109,747.02 25,309.84 63,521.13 109,747.02

374 Various Improvements 041l210I 8,436,254.00 149,535.68 3,486.34 21,403.01 5,987.74 125,631.27382 Various Capital Improvements 02/26/03 6,244,625.00 ll7,043.04 230,559.67 72,358.37 9,318.60 265,925.74384 Amboy Avenue Revitalization 07/23103 355,950.00 729.52 339,000.00 1,494.54 2,224.06 339,000.00386 Various Capital Improvements 12/22/03 1,886,184.00 1,000.00 1,000.00387 Various Capital Improvements 04/14/04 5,374,788.00 28,473.27 218,440.76 25,087.92 221,826.ll389 Various Park Improvements 09/09/04 2,187,900.00 185,755.67 38,832.40 224,588.07390 Acquisition of Open Space 01/26/05 1,349,640.00 748,594.45 64,205.73 812,800.18391 Various Capital Improvements 02/24/05 6,129,799.00 8ll,902.21 33,00625 286,575. II 187,365.45 899,859.08 11,252.79 33,00625392 Various Capital Improvements 09/14105 2,342,119.00 290,941.72 355,474.83 49,989.53 301.03 49,688.50 294,679.72 351,736.83

06/14/06 400,000.00 133,778.31 133,778.31394-403 Various Capital Improvements 04/11/07 7,009,500.00 2,723,087.94 75,777.03 127,013.54 401,140.80 2,270,710.63405 Various Improvements to Inman Ave and

Tingly Land Railroad Crossing 09/26/07 1,310,000.00 75,376.71 75,376.7108-1616 Various Capital Improvements 04/28/08 4,068,000.00 1,130,738.80 29,209.03 103,023.66 1l,559.70 1,045,364.47

09-1721 Various Roof Repairs and related improvements 10/28/09 913,000.00 324,863.91 572,000.00 517,380.00 56,000.00 323,483.91

10-1754 Various Capital Improvements 10/27/10 1,140,000.00 760,55427 379,445.73 535,475.80 133,082.86 471,441.3411-1773 General Refunding Bonds of 2011 051l1/1l 18,900,000.00 18,900,000.00 93,847.07 16,446,152.93 2,360,000.00

11-1783 General Refunding Bonds of 2011 - tax appeals 12/28/11 5,000,000.00 5000000.00 4388541.63 611 458.37

$6110169.64 $2501 985.83 $23900,000.00 $202185427 $6 046 709.56 $1,592,725.20 $21,511,623.ll $5382951.87

"""'VJ Ref. C C C-7 C C-2 C C C(}l

Exhibit - C-9SCHEDULE OF BOND ANTICIPATION NOTES

DATE OFORD. ORIGINAL DATE OF DATE OF INTEREST BALANCE B.A.N.S BALANCENO. IMPROVEMENT DESCRIPTION ISSUE ISSUE MATURJTY RATE DEC. 31 2010 ISSUED DECREASED DEC. 31 2011

404 Various Parcels of Land 09/02/10 09/01111 08/31112 1.25% $770,645.45 $770,645.45 $770,645.45 $770,645.45405 Various Improvements to Inman Ave and

Tingly Land Railroad Crossing 09/02/10 09/01/11 08/31112 1.25% 1,174,623.29 1,174,623.29 1,174,623.29 1,174,623.2908-1616 Various Capital Improvements 09/02/10 09/01/11 08/31112 1.25% 2,823,731.26 2,823,731.26 2,823,731.26 2,823,731.2609-1721 Various Street Improvements 09/02110 09/01/11 08/31112 1.25% 643,500.00 643,500.00 643,500.00 643,500.0009-1721 Various Roof Repairs and related improvements 09/02110 09/01111 08/31/12 1.25% 867,500.00 867,500.00 867,500.00 867,500.00

251 Constr. of Sidewalks Along Plainfield Ave. 09/02110 09/01111 08/31/12 1.50% 23,000.00 23,000.00 23,000.00 23,000.00289 Constr. of Comm. Center and Acquis. & Install. of Furnishings & Equip. 09/02110 09/01/11 08/31/12 1.50% 4,313.08 4,313.08 4,313.08 4,313.08309 Install. of Traffic Signal- James St. at Grove Ave. 09/02/10 09/01/11 08/31/12 1.50% 6,532.08 6,532.08 6,532.08 6,532.08311 Acquis. of Property - Blk 556 Lot 2K2 09/02/10 09/01111 08/31/12 1.50% 232.95 232.95 232.95 232.95320 Acquis. of Certain Veh. & Equip. & the Constr. of Var. Bldg. Improv. & Repairs

& Var. Park Improv. for the Dept. of Rec., Parks & Public Bldgs. & Grounds 09/02110 09/01/11 08/31/12 1.50% 4,210.71 4,210.71 4,210.71 4,210.71323 Acquis. of Traffic Signal-Kilmer Rd. & Truman Drive 09/02/10 09/01111 08/31/12 1.50% 155.94 155.94 155.94 155.94324 Road Improv. at the Intersection of Brunswick Ave. & Taylor Rd. 09/02/10 09/01/11 08/31112 1.50% 3,500.00 3,500.00 3,500.00 3,500.00325 Constr. of an Addition to the Woodbridge Ave. Senior Citizens Rec. Center Bldg. 09/02/10 09/01/11 08/31/12 1.50% 3,500.00 3,500.00 3,500.00 3,500.00326 Constr., Reconstr. & Resurfacing- Var. Rds. 09/02/10 09/01/11 08/31/12 1.50% 15,000.00 15,000.00 15,000.00 15,000.00327 Repairs, Renovations & Improv. to Var. Municipally Owned Bldgs.,

Grounds and Public Properties 09/02/10 09/01/11 08/31/12 1.50% 11,620.72 11,620.72 11,620.72 11,620.72329 Design & Constr. of Mun. Landfill Improv. 09/02/10 09/01/11 08/31/12 1.50% 13,904.72 13,904.72 13,904.72 13,904.72330 Acquis. of Firefighter Apparatus & Equip. 09/02/10 09/01111 08/31112 1.50% 247.63 247.63 247.63 247.63332 Acquis. & Install. of First Aid Squad Communication Equip. 09/02/10 09/01111 08/31112 1.50% 2,000.00 2,000.00 2,000.00 2,000.00

I-'" 334 Drainage Improv. at Plymouth & Liddle Aves. 09/02110 09/01/11 08/31/12 1.50% 106.79 106.79 106.79 106.79VJ 337 Installation of Traffic Improvements 09/02110 09/01/11 08/31/12 1.50% 794.00 794.00 794.00 794.000\

338 Installation of Traffic Improvements 09/02/10 09/01111 08/31112 1.50% 2,686.19 2,686.19 2,686.19 2,686.19342 Renovation of Fire Station #6 09/02110 09/01111 08/31/12 1.50% 390.80 390.80 390.80 390.80343 Acquisition of Fire Pumper Trucks 09/02110 09/01/11 08/31/12 1.50% 11,982.65 11,982.65 11,982.65 11,982.65363 Acquis. of Property for Open Space 09/02110 09/01/11 08/31/12 1.50% 12,284.92 12,284.92 12,284.92 12,284.92365 Supplemental Approp. - Woodland Park Acquis. 09/02110 09/01/11 08/31/12 1.50% 1,136.00 1,136.00 1,136.00 1,136.00375 Acquisition of Various Parcels of Property 09/02/10 09/01/11 08/31/12 1.50% 273,546.87 273,546.87 273,546.87 273,546.87377 Supplemental Appropriation-Acquisition of Open Space 09/02110 09/01111 08/31/12 1.50% 1,886.13 1,886.13 1,886.13 1,886.13379 Various Road Improvements 09/02110 09/01/11 08/31112 1.50% 235,370.22 235,370.22 235,370.22 235,370.22386 Various Capital Improvements 09/02/10 09/01/11 08/31/12 1.50% 202,375.00 202,375.00 202,375.00 202,375.00388 Acquisition of Open Space 09/02/10 09/01/11 08/31112 1.50% 220,707.60 220707.60 220707.60 220707.60

$7331,485.00 $7,331,485.00 $7,331,485.00 $7,331485.00

Ref. C C-2 C-2 C


Increased by:2011 Budget Approp.



Increased by:Cash Receipts


SCHEDULE OF CAPITAL IMPROVEMENT FUND

C

C-2

C

SCHEDULE OF RESERVE FOR PAYMENT OFFUTURE DEBT SERVICE COSTS

C

C-2

C

-137 -

Exhibit - C-l 0

$381,281.51

100,000.00

$481,28l.51

Exhibit - C-ll

$2,545,698.57

87,640.00

$2,633,338.57

Exhibit - C-12SCHEDULE OF SERIAL BONDS - GENERAL CAPITAL FUND

MATURITIES OF BONDSDATE OF ORIGINAL OUTSTANDING - DEC. 31,2011 INTEREST BALANCE BALANCE

PURPOSE ISSUE ISSUE DATE AMOUNT RATE DEC. 31.2010 INCREASED DECREASED DEC. 31.2011

General Improv. Bonds of2002 02/01102 $29,450,000.00 02/01112 $1,800,000.00 4.50% $21,350,000.00 $19,550,000.00 $1,800,000.00

General Improv. Bonds of2003 03/15103 10,000,000.00 03/15/12 180,000.00 4.30% 9,710,000.00 100,000.00 9,610,000.0003/15113 250,000.00 4.40%03/15/14 280,000.00 5.36%03/15/15 390,000.00 5.36%03/15/16 430,000.00 5.36%03/15/17 470,000.00 5.36%03/15/18 530,000.00 5.36%03/15/19 1,230,000.00 5.36%03/15/20 1,320,000.00 5.36%03/15/21 1,420,000.00 5.36%03/15/22 1,510,000.00 5.36%03/15/23 1,600,000.00 5.36%

,_. General Improv. Bonds of2007 06/01107 29,675,000.00 06/01112 1,860,000.00 4.125% 28,010,500.00 1,790,000.00 26,220,500.00(jJ 06/01113 1,950,000.00 4.125%00

06/01114 2,085,000.00 4.125%06/01115 2,150,000.00 4.125%06/01116 2,450,000.00 4.125%06/01117 2,605,000.00 4.125%06/01118 2,770,000.00 4.125%06/01119 2,285,000.00 4.125%06/01120 2,440,000.00 4.125%06/01121 2,595,000.00 4.125%06/01122 3,030,500.00 4.125%

General Obligation Refunding Bonds, Series 20 II 6/23/11 16,540,000.00 02/01113 1,760,000.00 3.000% 16,540,000.00 16,540,000.0002/01/14 1,730,000.00 3.000%02/01115 1,705,000.00 3.000%02/01/16 1,680,000.00 4.000%02/01117 1,665,000.00 4.000%02/01118 1,655,000.00 5.000%02/01119 1,655,000.00 5.000%02/01120 1,650,000.00 5.000%02/01121 1,645,000.00 5.000%02/01/22 1,395,000.00 5.000%

$59,070,500.00 $16,540,000.00 $21,440,000.00 $54,170,500.00

Ref. C C-6 C-6 C

Exhibit - C-13SCHEDULE OF SERIAL BONDS - TYPE I SCHOOL DISTRICT

PURPOSEDATE OFISSUE

ORIGINALISSUE

MATURITIES OF BONDSOUTSTANDING -DEC 31,2011

DATE AMOUNTINTEREST

RATEBALANCE

DEC. 31.2010 DECREASEDBALANCE

DEC. 31,2011

School Bonds- Series 1991 06/01191 $20,095,000.00 $1,095,000.00 $1,095,000.00

$1,095,000.00 $1,095,000.00 =====

C C-6 C

Exhibit - C-14GREEN ACRES TRUST LOANS PAYABLE - GENERAL CAPITAL FUND

DRAWDOWN ANNUAL PAYMENTS* INTEREST BALANCE BALANCEPURPOSE DATE AMOUNT YEAR AMOUNT RATE DEC. 31,2010 DECREASED DEC. 31,2011

I-' (1) Woodland Ave. Park I 10/26/07 $1,230,000.00 2008-2018 $1,230,000.00 2.000% $861,692.86 $107,598.55 $754,094.31C;.)\0

(2) Woodland Ave. Park II 07/11/03 712,500.00 2005-2022 44,305.52 2.000% 470,599.70 35,067.99 435,531.712023 22,152.76

(3) Woodland Grove 08/10103 281,250.00 2005-2018 20,096.68 2.000% 156,374.84 17,054.03 139,320.812019 20,096.75

(4) Mill Road Park 10/26/07 802,500.00 2008-2019 65,526.27 2.000% 509,868.18 55,605.56 454,262.62

$1:998,535.58 $215:326.13 $1,783:209.45

Ref. C C-6 C

* Annual Payments are due in semi-annual installments of each year. Loan Amortization Schedule reflects a 2% interest rate.

(1) - Annual Payments are due in semi-annual installments on October 26 and April 26.

(2) - Annual Payments are due in semi-annual installments on July 11 and January 11.

(3) - Annual Payments are due in semi-annual installments on August 10 and February 10.

(4) - Annual Payments are due in semi-annual installments on October 26 and April 26.

Exhibit - C-15

SCHEDULE OF RESERVE FOR GRANTS RECEIVABLE

Balance - December 3 1, 2010 C $51,173.53

Balance - December 31, 2011 C $51,173.53

Analysis of Balance @ 12/31/11

OrdinanceNumber

GreenAcresD.O.T. Stony Road East

391379

$16,462.6434,710.89

$51,173.53

Exhibit - C-16

SCHEDULE OF DUE FROM VARIOUS GRANTOR AGENCIESGRANTS RECEIVABLE

GENERAL CAPITAL FUND

OrdinanceNumber

Balance BalanceDecember 31, December 31,

2010 2011

$16,462.64 $16,462.6434,710.89 34,710.8917,770.88 17,770.8812,000.00 12,000.0078,000.00 78,000.0017,765.16 17,765.167,577.91 7,577.91

24,400.00 24,400.0020,000.00 20,000.00

$228,687.48 $228,687.48

C C

Receivables:GreenAcres 391D.O.T. Stony Road East 379Local Domestic Preparedness Grant 382ADA Improvements 382Purchase of Closed Caption System 382D.O.T. Municipal Aid - Amboy Ave 382D.O.T. Municipal Aid - Grove Ave 387D.O.T. Municipal Aid - Central, Winthrop & Ovington 387Homeland Security Grant 392

Cash ReceiptsImprovement Authorizations Canceled

C-2C-9

-140 -

Exhibit - C-l7SCHEDULE OF INFRASTRUCTURE

TRUST LOAN PAYABLE

BALANCE BALANCEDATE OF AMOUNT OF INTEREST MATURITIES OF LOANS DEC. 31, DEC. 31,

DESCRIPTION ISSUE ISSUE RATE YEAR AMOUNT 2010 DECREASED 2011

New Jersey EnvironmentalInfrastructure Trust 2002 A Loan 1117102 $1,180,000.00 5.00% 2012 $55,000.00 $ 865,000.00 $ 55,000.00 $ 810,000.00

5.25% 2013 60,000.005.00%-5.25% 2014-2015 65,000.00

5.00% 2016-2017 70,000.005.00% 2018 75,000.005.00% 2019 80,000.005.00% 2020 85,000.005.00% 2021 90,000.004.75% 2022 95,000.00

New Jersey EnvironmentalInfrastructure Trust 2006 A Loan 1117106 450,000.00 5.00% 2012-2016 20,000.00 405,000.00 20,000.00 385,000.00

4.00%-4.125% 2017-2021 25,000.004.125%-5.00% 2022-2024 30,000.00

4.25% 2025-2026 35,000.00

New Jersey EnvironmentalInfrastructure Fund 2002 A Loan 1117102 $1,227,475.00 0.00% 2012 61,805.87 756,770.48 63,584.22 693,186.26

0.00% 2013 63,260.89f-' 0.00% 2014 64,457.24fl::>.f-' 0.00% 2015 62,250.46

0.00% 2016 63,382.130.00% 2017 61,118.920.00% 2018 62,088.800.00% 2019 62,897.130.00% 2020 63,543.800.00% 2021 64,028.810.00% 2022 64,352.21

New Jersey EnvironmentalInfrastructure Trust 2006 A Loan 1117106 441,780.10 0.00% 2012 23,749.45 365,608.60 24,391.00 341,217.60

0.00% 2013 23,107.900.00% 2014 22,466.350.00% 2015 21,824.790.00% 2016 21,183.240.00% 2017 23,749.450.00% 2018 23,107.900.00% 2019 22,466.350.00% 2020 21,824.790.00% 2021 21,183.240.00% 2022 23,729.400.00% 2023 22,935.480.00% 2024 22,117.500.00% 2025 24,362.930.00% 2026 23,408.83

$ 2,392,379.08 $ 162,975.22 $ 2229403.86

Ref. C C-6 C

SCHEDULE OF BONDS AND NOTES Exhibit - C-18AUTHORIZED BUT NOT ISSUED Page 1 of2

CAP. DATE OF BALANCE 2011 2011 2011 BAN.S BALANCE

NO. IMPROVEMENT DESCRIPTION ORDINANCE DEC. 31,2010 AUTHORIZED BAN.s FUNDING REDEEMED DEC. 31,2011


289 Constr. ofComm. Center and Acquis.& Install. of Furnishings & Equip. 09/23/87 4,313.08 4,313.08

309 Install. of Traffic Signal- James St. at Grove Ave. 09113/89 6,532.08 6,532.08

311 Acquis. of Property - BIk 556 Lot 2K2 09/27/89 232.95 232.95

320 Acquis. of Certain Veh. & Equip. & the Constr.ofVar. Bldg. Improv. & Repairs & Var. ParkImprov. for the Dept. ofRec., Parks & PublicBldgs. & Grounds 10110/90 4,210.71 4,210.71

323 Acquis. of Traffic Signal-Kilmer Rd. &Truman Drive 03113/91 155.94 155.94

324 Road Improv. at the Intersection ofBrunswickAve. & Taylor Rd. 04/10/91 3,500.00 3,500.00

325 Constr. of an Addition to the WoodbridgeAve. Senior Citizens Rec. Center Bldg. 09/10/92 3,500.00 3,500.00

326 Constr., Reconstr. & Resurfacing- Var. Rds. 09/10/91 15,000.00 15,000.00

327 Repairs, Renovations & Improv. to Var.Municipally Owned Bldgs., Grounds

..... and Public Properties 09/10/91 11,620.72 11,620.72

'""'" 329 Design & Constr. of Mun. Landfill Improv. 12/11191 13,904.72 13,904.72N

330 Acquis. of Firefighter Apparatus & Equip. 12/26/92 247.63 247.63

332 Acquis. & Install. of First Aid SquadCommunication Equip. 12/26/91 2,000.00 2,000.00

334 Drainage Improv. at Plymouth & Liddle Aves. 12/26/91 106.79 106.79

337 Installation of Traffic Improvements 09/23/92 794.00 794.00

338 Installation of Traffic Improvements 11112/92 2,686.19 2,686.19

342 Renovation of Fire Station #6 04/28/93 390.80 390.80

343 Acquisition of Fire Pumper Trucks 04/28/93 11,982.65 11,982.65

363 Acquis. of Property for Open Space 02/24/99 12,284.92 12,284.92

365 Supplemental Approp. - Woodland Park Acquis. 02/24/99 1,136.00 1,136.00

373 Amboy Avenue Revitalization Project 09/22/00 28,909.21 28,909.21

373 Amboy Avenue Revitalization Project 05115/01 80,837.81 80,837.81

375 Acquisition of Various Parcels of Property 05/15/01 273,546.87 273,546.87

377 Supplemental Appropriation-Acquisition of Open Space 02/27/02 1,886.13 1,886.13

379 Various Road Improvements 04110102 235,370.22 235,370.22

384 Amboy Avenue Revitalization 07/23/03 339,000.00 339,000.00

386 Various Capital Improvements 12/22/03 202,375.00 202,375.00

388 Acquisition of Open Space 05/12/04 220,707.60 220,707.60



404 Various Parcels of Land 05109/07 770,645.45 770,645.45

SCHEDULE OF BONDS AND NOTES Exhibit - C-18AUTHORIZED BUT NOT ISSUED Page 2 of2

CAP. DATE OF BALANCE 2011 2011 2011 B.A.N.S BALANCE

NO. IMPROVEMENT DESCRIPTION ORDINANCE DEC. 31,2010 AUTHORIZED BAN.S FUNDING REDEEMED DEC. 31,2011

General Iml1rovements (Cont'd.):

405 Various Improvements to Inman Ave andTingly Land Railroad Crossing 09/26/07 1,050,000.00 1,050,000.00

08-1616 Various Capital Improvements 04/28/08 753,375.16 2,823,731.26 2,823,731.26 753,375.16

09-1721 Various Street Improvements 10/28/09 643,500.00 643,500.00

09-1721 Various Roof Repairs and related improvements 10/28/09 867,500.00 867,500.00

11-1773 General Refunding Bonds of2011 05111111 18,900,000.00 16,540,000.00 2,360,000.00

11-1783 General Refunding Bonds of 20 11 - tax appeals 12/28111 5 000,000.00 5,000,000.00

Total Capital Fund 1,720,643.57 23,900,000.00 7,183,861.71 16,540,000.00 7,183,861.71 9,080,643.57

Local Iml1rovements:

251 Constr. of Sidewalks AlongPlainfield Ave. 09/26/84 23,000.00 23,000.00

Total Trust Fund 23,000.00 23,000.00

Grand Total $1,720,643.57 $23,900,000.00 $7,206,861.71 $16,540,000.00 $7,206,861.71 $9,080,643.57

~~ Ref. Footnote CC;J

Water Utility Fund

-144 -

SCHEDULE OF WATER UTILITY CASH ANDCASH AND INVESTMENTS - TREASURER


Increased by Receipts:Deficit (General Budget)Due to Current Fund - Interest EarnedInterfunds Receivable ReturnedBond Anticipation Notes

Decreased by Disbursements:Interfunds Payable ReturnedBond Anticipation NotesAccrued Interest Payable


D

D-3D-9D-IOD-l3

D-8,D-9D-l3D-14

D

OPERATING FUND

14,452.732,794.244,239.47

4,239.47

14,452.73

Exhibit - D-5

CAPITAL FUND

$119,746.06

21486.44

141,232.50

18692.20

$122,540.30

ANALYSIS OF WATER UTILITY CAPITAL CASH AND INVESTMENTS

Fund BalanceDue from Water Operating FundExcess BAN's

-145 -

963,515.00

963,515.00

$0.00

963515.00

963,515.00

963,515.00

$0.00

Exhibit - D-6

BALANCEDEC. 31,2011

$ 11,616.91(11,617.13)

0.22

$ 0.00

D

Exhibit - D- 7

SCHEDULE OF RESERVE FOR AMORTIZATIONWATER UTILITY CAPITAL FUND

Balance - December 31, 2010 D $5,926,294.51

Balance - December 31, 2011 D $5,926,294.51

Exhibit - D-8

SCHEDULE OF DUE TOIFROM WATER UTILITY OPERATING FUNDWATER UTILITY CAPITAL FUND

Balance - December 31,2010 D $7,377.66

Increased by:Premium on Sale of BAN's D-2 4,239.47

Balance - December 31,2011 D $11,617.13

-146 -

Exhibit - D-9

SCHEDULE OF DUE TO CURRENT FUNDWATER UTILITY OPERATING FUND

Due toREF. Total Current Fund

Balance - December 3 I, 2010 D $1,646.26 $1,646.26

Increased by:Cash Receipts D-5 2,794.24 2,794.24

4,440.50 4,440.50Decreased by:Cash Disbursements D-5 4,239.47 4,239.47

Balance - December 31, 2011 D $201.03 $201.03

Exhibit - D-l 0

SCHEDULE OF DUE TO WATER UTILITY CAPITAL FUNDWATER UTILITY OPERATING FUND

Balance - December 31, 2010 D $7,377.66

Increased by:Cash Receipts D-5 4,239.47

Balance - December 31, 2011 D $11,617.13

-147 -

Exhibit - D-l1

SCHEDULE OF FIXED CAPITALWATER UTILITY CAPITAL FUND


ACCOUNT 2010 2011

108 Pumping Sys. Land $1,350.00 $1,350.00110 Other Distrib. 6,450.00 6,450.00115 Springs and Wells 39,746.00 39,746.00118 Intake and Supply Main 57,817.00 57,817.00124 Chemical Treatment Plant 135.00 135.00127 Pumping Station Structure 60,999.00 60,999.00131 Elect. Power Equip. 20,573.00 20,573.00134 Trans. Main and Accessories 298,628.00 298,628.00135 Storage, Reservoirs, Tanks and Standpipe 19,798.00 19,798.00136 Distrib., Mains and Accessories 4,089,136.16 4,089,136.16138 Meters, Meter Boxes and Vaults 489,386.00 489,386.00139 Fire Hydrants 78,255.00 78,255.00141 General Structures 124,518.00 124,518.00142 General Equipment 104,507.00 104,507.00142A General Office Equip. 10,692.00 10,692.00142B General Shop Equip. 28,263.00 28,263.00142C General Store Equip. 1,623.00 1,623.00142D Autos-Trucks 260,891.00 260,891.00142E Misc. Equipment 81,621.00 81,621.00144 Engineering and Supervision 193,881.00 193,881.00145 Legal Expend. During Constr. 36,587.00 36,587.00148 Int. During Constr. 38,102.00 38,102.00149 Misc. Constr. Exp. 33,665.00 33,665.00150 Rights-of- Way 8,650.00 8,650.00151 Improvement and Replenishment of Water Main 18,300.08 18,300.08152 Construction, Reconstruction and Improvement

to the Vineyard Road Water Loop Closure andVarious Other Extensions and Loop Closures 16,168.00 16,168.00

153 Improvement to the Water Distribution System 858,886.05 858,886.05

$6,978,627.29 $6,978,627.29

Ref. D D

-148 -

CAPNO.

IMPROVEMENTDESCRIPTION

014 Construction, Reconstruction andImprove. to Vineyard Road WaterLoop Closure and Various other Revisions,Extensions and Loop Closures

015 Improvement to Water System

ORD.NO.

IMPROVEMENTDESCRIPTION

343-87 Improvement and Replacement of Water Main--Delores Drive and Douglass Drive

442-88 Improvement to the Water Distribution System709-93 Improvements to Water System

Exhibit - D-12

SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATIONWATER UTILITY CAPITAL FUND

DATE OF BALANCEORDINANCE DEC. 31,2010

BALANCEDEC. 31,2011

10/0919107/14/93

$16,167.9572 650.05

$16,167.9572 650.05

$88818.00 $88,818.00

D D

Exhibit - D-13

SCHEDULE OF BOND ANTICIPATION NOTES

ORIGINAL BALANCE BALANCEDATE OF RATE OF DATE OF DATE OF DECEMBER 31, DECEMBER 31,ISSUE INTEREST ISSUE MATURITY 2010 INCREASED DECREASED 2011

09/02/10 1.50% 09/01111 08/31112 $52,618.00 $52,618.00 $52,618.00 $52,618.00

09/02/10 1.50% 09/01/11 08/31112 124,661.00 124,661.00 124,661.00 124,661.00

09/02/10 1.50% 09/01111 08/31112 786236.00 786236.00 786236.00 786236.00

$963515.00 $963,515.00 $963,515.00 $963,515.00

D D-5 D-5 D

SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTESSEWER UTILITY OPERATING FUND


Increased by:Accrued Interest Charged to:2011 Budget Appropriation

Decreased by:Cash Disbursements


Analysis of Balance - December 31, 2011 :

PrincipalOutstanding12/31/11

Bond Anticipation Notes$963,515.00

InterestRate

1.500%

D

D-4

D-5

D

08/31111 12/31/11 4 months

-150 -

Exhibit - D-14

$4,817.58

14,452.72

19,270.30

14,452.72

$4,817.58

Amount

$4,817.58

Deferred Charges:Overexpenditure of Appropriation

Exhibit - D-15

SCHEDULE OF DEFERRED CHARGES

AMOUNT AMOUNTBALANCE IN 2011 RESULTING BALANCE

DEC. 31, 2010 BUDGET IN 2011 DEC. 31, 2011

$4,817.58 $4,817.58 $4,817.58 $4,817.58

$4,817.58 $4,817.58 $4,817.58 $4,817.58

Ref. D D-4 D-4 D

Exhibit - D-16

SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUEDWATER UTILITY CAPITAL FUND


012 Improvement and Replacement of Water Main--Delores Drive and Douglass Drive

013 Improvement to the Water Distribution System015 Improvements to Water System

DATE OFORDINANCE

BALANCEDEC. 31,2010

BALANCEBAN's BAN's DEC. 31,ISSUED REDEEMED 2011

$52,618.00 $52,618.00124,661.00 124,661.00786,235.78 786,235.78

$963,514.78 $963,514.78

Footnote D

03/25/8712/28/8807114/93

Sewer Utility Fund

-152 -

Exhibit - E-5

SCHEDULE OF SEWER UTILITYCASH AND INVESTMENTS - TREASURER

REF. OPERATING FUND CAPITAL FUND

Balance - December 31, 201O E $6,584,045.14 $978,626.79

Increased by Receipts:Int. on Investments & Deposits E- 2 2,117.53Miscellaneous Revenues E-3 100,349.41Sewer Utility Collector E- 6 11,955,104.98Due from Current Fund E- 9 329.53Due from Sewer Capital Fund E- 9 20,321.40Bond Anticipation Notes E-25 3,780,000.00

12,076,105.32 3,782,117.53,.....(J] 18,660,150.46 4,760,744.32CJ)

Decreased by Disbursements:Special Emergency Note E 1,270,000.00Refunds of Prior Year Revenues E- 1 982.50Budget Expenditures E-4 12,511,847.44Due to Current Fund E- 9 561.11Due from Sewer Capital Fund E- 9 268,880.49Sewer Rent Overpayment Refunds E-16 9,058.85Accounts Payable E-18 160.002010 Appropriation Reserves E-19 482,027.70Accrued Interest Payable E-20 136,417.00Bond Anticipation Notes E-25 3,780,000.00

14,679,935.09 3,780,000.00

Balance - December 31, 2011 E $3,980,215.37 $980,744.32

Increased by Receipts:Sewer RentsSewer Rent LiensSewer Rent Overpayments

Decreased by:Paid to Treasurer:Sewer Utility Fund

SCHEDULE OF SEWER UTILITY CASH - COLLECTOR

-154 -

E-7E- 8E-16

E-5

11,886,416.191,634.11

67,054.68

Exhibit - E-6

$11,955,104.98

$11,955,104.98

Exhibit - E- 7

SCHEDULE OF SEWER RENTS RECEIVABLE

Balance - December 3 1, 2010 E $321,047.92

Increased by:2011 Sewer Service Charges Reserve 11,654,802.59

11,975,850.51Decreased by:2011 Collections:Collector

Sewer Rent Overpayments AppliedTransfers to Sewer Rent Liens

E-3, E-6E-3, E-16

E-8

11,886,416.1946,921.41

163.03

11,933,500.63

Balance - December 31, 2011 E $42,349.88

Exhibit - E-8

SCHEDULE OF SEWER RENT LIENS

REF.


Increased by:Transfers from Sewer Rents Receiv. E-7 163.03Interest & Costs Accrued by Sale Reserve 11.00

174.03

17,503.38Decreased by:2011 Collections - Collector E-2, E-6 1,634.11Cancelled Reserve 12,318.12

13,952.23


-155 -

Exhibit - E-9

SCHEDULE OF INTERFUNDS RECEIVABLEIPAYABLE

SewerCurrent Capital

REF. Total Fund Fund

Balance - December 31, 2010 E ($155,137.97) $329.53 ($155,467.50)

Increased by:Cash Disbursements E- 5 269,441.60 561.11 268,880.49

114,303.63 890.64 113,412.99

Decreased by:Cash Receipts E- 5 20,650.93 329.53 20,321.40

I-'U10\

Balance - December 31,2011 E $93,652.70 $561.11 $93,091.59

Exhibit- E-I0SCHEDULE OF SERIAL BONDS - SEWER UTILITY CAPITAL FUND

MATURITIES OF BONDSDATE OF ORIGINAL OUTSTANDING - DEC. 31,20II INTEREST BALANCE BALANCE

PURPOSE ISSUE ISSUE DATE AMOUNT RATE DEC. 31,2010 DECREASED DEC. 3 1.20 II

Sewer Utility Bonds - 2007 6/112007 $2,266,500.00 06/01/12 $50,000.00 4.125% $2,221,500.00 $45,000.00 $2,176,500.0006/01113 50,000.00 4.125%06/01114 50,000.00 4.125%06101115 55,000.00 4.125%06/01116 55,000.00 4.125%06/01117 60,000.00 4.125%06/01118 60,000.00 4.125%06/01119 65,000.00 4.125%06/01120 65,000.00 4.125%06/01121 70,000.00 4.125%06/01122 70,000.00 4.125%06/01123 75,000.00 4.250%06/01124 75,000.00 4.250%06/01125 80,000.00 4.250%

~ 06/01126 85,000.00 4.250%CJl 06/01127 90,000.00 4.250%~ 06/01128 90,000.00 4.250%

06/01129 95,000.00 4.250%06/01130 100,000.00 4.250%06/01131 105,000.00 4.250%06/01132 IIO,OOO.OO 4.250%06/01133 II 5,000.00 4.250%06/01134 120,000.00 4.250%06101135 125,000.00 4.250%06/01136 130,000.00 4.250%06/01137 131,500.00 4.250%

$2,221,500.00 $45,000.00 $2,176,500.00

Ref. E E-23 E

SCHEDULE OF FIXED CAPITAL


Pump Station ImprovementsEngineering CostsMiscellaneous Costs

$5,877,696.25943,124.0414,169.54

$6,834,989.83

E

Exhibit - E-ll


$5,877,696.25943,124.0414,169.54

$6,834,989.83

E

Exhibit - E-12

SCHEDULE OF DUE FROM/TO SEWER UTILITY OPERATING FUND

Balance - December 31,2010(to)

E

Increased by:Premium on Sale of Bonds E-2

Decreased by:Improvement Authorizations E-21

Balance - December 31,2011(from)

E

-158 -

$155,467.50

20,321.40

175,788.90

268,880.49

($93,091.59)

SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETEDSEWER UTILITY CAPITAL FUND

BALANCE BALANCEORD.NO. IMPROVEMENT DESCRIPTION DEC. 31, 2010 DEC. 31, 2011

1 Improvement of Pump Station,Renovations and Upgrades at the WestSide, Evergreen and NationalRoad Pump Stations $79,170.17 $79,170.17

7 Wastewater Collection System-2005 1,200,000.00 1,200,000.00

8 Improvements to Sewer System - 2007 266,800.00 266,800.00

9 Purchase of Vehicles and Equipment - 2008 420,000.00 420,000.00

$1,965,970.17 $1,965,970.17

Ref. E E

-159 -

Exhibit - E-13

SCHEDULE OF RESERVE FOR ENCUMBRANCES


Increased by:Charges to 2011 Budget Approp. E-4

Decreased by:Transferred to 2010 Approp. Reserves E-19

Balance - December 31, 2011 E

-160 -

Exhibit - E-14

OPERATINGFUND

$71,897.51

162,399.15

234,296.66

71,897.51

$162,399.15

Exhibit - E-15

SCHEDULE OF RESERVE FOR MCIALEASE PURCHASE PAYABLE



Exhibit - E-16

SCHEDULE OF SEWER RENT OVERPAYMENTS

REF.

Balance - December 31,2010 E $54,471.98

Increased by:Cash Overpayments Collected -Collector E-6 67,054.68

121,526.66Decreased by:Refunds E-5 9,058.85Applied to Sewer Rents Receivable E-7 46,921.41

55,980.26


-161-

Exhibit - E-l 7

SCHEDULE OF RESERVE FOR SEWER LIEN FORECLOSURES

Balance - December 31,2010 E


SCHEDULE OF ACCOUNTS PAYABLE


Increased by:Transfer from 2010 Appropriation Reserves E-19

Decreased by:Canceled to Fund BalanceCash Disbursements

20.00160.00

E-lE-5

Balance - December 3 1, 2011 E

-162 -

$5,020.64

$5,020.64

Exhibit - E-18

$9,480.48

6641.96

16,122.44

180.00

$15,942.44

OPERATING:Salaries and WagesOther ExpensesMiddlesex County Utilities Authority Charges

CAPITAL IMPROVEMENTS:Capital Improvement Projects

STATUTORY EXPENDITURES:Social Security (O.A.S.L)

2010 Appropriation Reserves EEncumbrances Payable E-14

Cash Disbursements E- 5Accounts Payable E-18

Exhibit -E-19SCHEDULE OF 2010 APPROPRIATION RESERVES

SEWER UTILITY OPERATING FUND

BALANCEBALANCE 12/31110 AFTER PAID OR BALANCE

DEC. 31,2010 ENCUMB. MODIFICATION CHARGED LAPSED

$87,614.87 $87,614.87 $461.54 $87,153.33344,564.68 71,897.51 416,462.19 101,154.56 315,307.63387,053.56 387,053.56 387,053.56

185,000.00 185,000.00 185,000.00

39,820.76 39,820.76 39,820.76

$1,044,053.87 $71,897.51 $1,115,951.38 $488,669.66 $627,281.72

E E-14 E-l

$1,044,053.8771,897.51

$1,115,951.38

$482,027.706,641.96

$488,669.66

Exhibit - E-20

SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTESSEWER UTILITY OPERATING FUND

REF.


Increased by:Accrued Interest Charged to:2011 Budget Appropriations E-4 138,412.31

160,807.73

Decreased by:Cash Disbursements E-5 136,417.00


Analysis of Balance - December 31, 2011:

PrincipalOutstanding Interest

12/31111 Rate From To Period AmountBonds

$50,000.00 4.125% 12/01111 12/31/11 1 month $171.8850,000.00 4.125% 12/01111 12/31/11 1month 171.8850,000.00 4.125% 12/01/11 12/31/11 1month 171.8855,000.00 4.125% 12/01111 12/31111 1 month 189.0655,000.00 4.125% 12/01111 12/31/11 1month 189.0660,000.00 4.125% 12/01111 12/31/11 1 month 206.2560,000.00 4.125% 12/01111 12/31/11 1 month 206.2565,000.00 4.125% 12/01111 12/31111 1month 223.4465,000.00 4.125% 12/01/11 12/31/11 1 month 223.4470,000.00 4.125% 12/01/11 12/31/11 1 month 240.6370,000.00 4.125% 12/01111 12/31111 1month 240.6375,000.00 4.250% 12/01111 12/31111 1 month 265.6375,000.00 4.250% 12/01111 12/31/11 1 month 265.6380,000.00 4.250% 12/01111 12/31/11 1month 283.3385,000.00 4.250% 12/01111 12/31111 1month 301.0490,000.00 4.250% 12/01111 12/31/11 1 month 318.7590,000.00 4.250% 12/01/11 12/31/11 1 month 318.7595,000.00 4.250% 12/01/11 12/31111 1month 336.46100,000.00 4.250% 12/01/11 12/31111 1 month 354.17105,000.00 4.250% 12/01111 12/31/11 1 month 371.88110,000.00 4.250% 12/01/11 12/31111 1 month 389.58115,000.00 4.250% 12/01111 12/31/11 1 month 407.29120,000.00 4.250% 12/01111 12/31111 1month 425.00125,000.00 4.250% 12/01/11 12/31/11 1 month 442.71130,000.00 4.250% 12/01/11 12/31/11 1month 460.42131,500.00 4.250% 12/01111 12/31/11 1 month 465.73

BAN's1,200,000.00 1.500% 09/01111 12/31111 4 months 6,000.002,580,000.00 1.250% 09/01111 12/31/11 4 months 10,750.00

$5,956,500.00 -164 - $24,390.73

CAP.NO. IMPROVEMENT DESCRIPTION

Improvement of Pump StationRenovation and Upgrades At TheWest Side, Evergreen and NationalRoad Pump Stations

5 Wastewater Collection System-2003

7 Wastewater Collection System-2005

8 Improvements to Sewer System - 2007

9 Purchase of Vehicles and Equipment - 2008

Exhibit -E-21SCHEDULE OF IMPROVEMENT AUTHORIZATIONS

SEWER UTILITY CAPITAL FUND

ORDINANCEBALANCE

DECEMBER 31,2010BALANCE

DECEMBER 31 201112/31/11ENCUMB

12/31110ENCUMB

PAID ORCHARGED FUNDED UNFUNDEDFUNDED UNFUNDEDDATE AMOUNT

07114/93 $2,685,000.00 $79,170.17 $63,300.00 $15,870.17

02/26/03 1,200,000.00 86,555.67 86,555.67

04114/05 1,200,000.00 998,238.80 78,107.53 175,449.28 22,495.00 878,402.05

04111107 266,800.00 4,591.66 300.00 4,591.66 300.00

04/28/08 420,000.00 104016.80 6875.54 97141.26

$4591.66 $1 181 725.77 $164663.20 $268880.49 $85795.00 $4591.66 $991713.48

Ref. E E E E-12 E E E

Exhibit - E-22

SCHEDULE OF CAPITAL IMPROVEMENT FUND



Exhibit - E-23

SCHEDULE OF RESERVE FOR AMORTIZATION

Balance - December 31, 2010 E $2,039,260.00

Increased by:Serial Bonds E-IO 45,000.00

Balance - December 31,2011 E $2,084,260.00

-166 -

Exhibit - E-24

SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION


3 Repair, Replacement and Improve.to the Sewer System

-167 -

BALANCEDEC. 31,2010

$17,750.00

$17,750.00

E

BALANCEDEC. 31,2011

$17,750.00

$17,750.00

E

Exhibit - E-25SCHEDULE OF BOND ANTICIPATION NOTES

DATE OFOED. ORIGINAL DATE OF DATE OF INTEREST BALANCE B.A.N.S BALANCENO. IMPROVEMENT DESCRIPTION ISSUE ISSUE MATURITY RATE DEC. 31. 2010 ISSUED DECREASED DEC. 31 2011

1351-03 Wastewater Collection System-2003 09/02/10 09/01111 08/31/12 1.50% $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.001404-04 Wastewater Collection System-2004 09/02/10 09/01111 08/31112 1.25% 1,162,800.00 1,162,800.00 1,162,800.00 1,162,800.001451-05 Wastewater Collection System-2005 09/02/10 09/01111 08/31112 1.25% 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.001617-08 Purchase of Vehicles and Equipment - 2008 09/02/10 09/01111 08/31112 1.25% 417200.00 417200.00 417,200.00 417200.00

$3,780,000.00 $3,780,000.00 $3,780,000.00 $3 780,000.00

Ref. E E-12 E-11 E

Exhibit - E-26

SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED

ORD. BALANCE BAN'S BAN'S BALANCENO. IMPROVEMENT DESCRIPTION DEC. 31,2010 ISSUED REDEEMED DEC. 31.2011

Improvement of Pump Station Renovationand Upgrades At the West Side, Evergreenand National Road Pump Stations $152,100.00 $152,100.00

3 Repair, Replacement and Improvs.to the Sewer System 337,250.00 337,250.00

4 Wastewater Collection System 50,000.00 50,000.00

5 Wastewater Collection System-2003 $1,200,000.00 $1,200,000.00

6 Wastewater Collection System-2004 1,162,800.00 1,162,800.00

7 Wastewater Collection System-2005 200,000.00 1,000,000.00 1,000,000.00 200,000.00

8 Improvements to Sewer System - 2007 300.00 300.00

9 Purchase of Vehicles and Equipment - 2008 2,800.00 417200.00 417,200.00 2800.00

$742,450.00 $3,780,000.00 $3,780,000.00 $742,450.00

Footnote E

-169 -

Public Assistance Fund

-170 -

Exhibit - F-l

SCHEDULE OF PUBLIC ASSISTANCE CASHAND INVESTMENTS - TREASURER

REF. P.A.T.F. #1 Total

Balance - December 31, 2010 $ 42,749.73 $ 42,749.73

Increased by Receipts:Interest Earned F-2,F-4 165.43 165.43

Balance - December 31, 2011 F $ 42,915.16 $ 42,915.16

-171-

Exhibit - F-2

PUBLIC ASSISTANCE FUNDSCHEDULE OF REVENUES


Other RevenuesInterest Earned

P.A.T.F. P.A.T.F. FUNDACCT. #1 ACCT. #2 TOTAL

$ 165.43 $ $ 165.43

$ 165.43 $ $ 165.43

Ref. F- 1

Exhibit - F-3

Total Revenues

PUBLIC ASSISTANCE FUNDSCHEDULE OF EXPENDITURES


P.A.T.F.ACCT. #1

P.A.T.F.ACCT. #2

FUNDTOTAL

Total Expenditures =$==== =$==== =$====

Exhibit - F-4

PUBLIC ASSISTANCE FUNDSCHEDULE OF RESERVE FOR PUBLIC ASSISTANCE


REF.

Balance - December 31, 2010 $42,749.73

Increased by:Interest Earned F- 1 165.43

Balance - December 31, 2011 F $42,915.16

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TOWNSHIP OF EDISON


PART III

SUPPLEMENTARY DATA

-173 -

Length of Service Award Program (LOSAP) (Unaudited)

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HODULIK & MORRISON, P .A.CERTIFIED PUBLIC ACCOUNTANTS

REGISTERED MUNICIPAL ACCOUNT ANTS


1102 RARITAN AVENUE,P.O. BOX 1450


(732) 393-1000(732) 393-1196 (FAX)

ANDREW G. HODULIK, CPA, RMA, PSAROBERT S. MORRISON, CPA, RMA, PSA


REGISTERED MUNICIPAL ACCOUNTANTS OF N.J.JOANN BOOS,CPA,PSA

INDEPENDENT ACCOUNTANT'S REVIEW REPORT


Township of EdisonCounty of Middlesex, New Jersey

We have reviewed the accompanying statement of assets, liabilities and net assets of the Township ofEdison Length of Service Award Program (LOSAP) as of December 31, 2011, and the related statementof revenues, expenses and other changes in net assets for the year then ended. A review includes primarilyapplying analytical procedures to management's financial data and making inquiries of the administrationof the Township. A review is substantially less in scope than an audit, the objective of which is theexpression of an opinion regarding the financial statements as a whole. Accordingly, we do not expresssuch an opinion.

The management of the Township is responsible for the preparation and fair presentation of the financialstatements in accordance with accounting principles and practices prescribed by the Division of LocalGovernment Service, Department of Community Affairs, State of New Jersey, which is a comprehensivebasis of accounting other than accounting principles generally accepted in the United States of Americaand for designing, implementing, and maintaining internal control relevant to the preparation and fairpresentation of the financial statements.

Our responsibility is to conduct the review in accordance with Statements on Standards for Accountingand Review Services issued by the American Institute of Certified Public Accountants. Those standardsrequire us to perform procedures to obtain limited assurance that there are no material modifications thatshould be made to the financial statements. We believe that the results of our procedures provide areasonable basis for our report.

Based on our review, we are not aware of any material modifications that should be made to theaccompanying financial statements in order for them to be in conformity with the accounting principlesgenerally accepted in the United States of America.

&01~ ~ /1UUbtflt, //1HODULIK &MORRISON, P.A.Certified Public AccountantsRegistered Municipal Accountants


-175 -

Exhibit - ATOWNSHIP OF EDISON

LENGTH OF SERVICE AWARD PROGRAM (LOSAP)STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS

(UNAUDITED)AS AT DECEMBER 31, 2011

AssetsInvestments, at fair value $ __ 19_5......,6_0_3_.2_4

Total Assets $ ==1=9::::5,=60=3=.2=4

Net AssetsRestricted $ _----,-19;,...;;5-,-,6;,...;.0,.;...3.=24..;..

Total Net Assets $ ==19::::5=,6::::0:::3.::::24=

See Accompanying Notes and Accountant's Review Report

-176 -

Exhibit - BSCHEDULE OF LENGTH OF SERVICE

AWARD PROGRAM (LOSAP) - (UNAUDITED)STATEMENT OF REVENUES, EXPENSES AND OTHER CHANGES IN NET ASSETS


Balance - December 31, 2010 $ 196,479.36

Restricted Net AssetsInterest Earned 2,135.93Appreciation 567.84Withdrawls (3,579.89)

Increase in Net Assets (876.12)

Balance - December 31,2011 $ 195,603.24

See Accompanying Notes and Accountant's Review Report

-177 -

TOWNSHIP OF EDISONLENGTH OF SERVICE AWARD PROGRAM (LOSAP)

NOTES TO FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31,2011

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Nature of Activities

The Length of Service Award Program is a Township sponsored program and has no separatelegal status or existence. The program prepares its financial statements in conformity with theaccounting principles and practices prescribed by the Division of Local Government Service,Department of Community Affairs, State of New Jersey, which is a comprehensive basis ofaccounting other than generally accepted accounting principles. The Township of Edison Lengthof Service Award Program (LOSAP) is a qualified plan under Internal Revenue Code Section457(e) and pursuant to P.L. 1997, c.388. The Township established the LOSAP Program for the5 Edison Volunteer Fire Companies and the Edison 3 First Aid and Rescue Squads on June 26,2002 through Ordinance #1209-2000. LOSAP provides for fixed annual contributions to adeferred income account for volunteer firefighters and first aid and rescue squad members whomeet specified service criteria. LOSAP shall provide for annual contribution to each eligiblemember that meets the criteria as provided in the LOSAP Point System. The Township ofEdison sponsors LOSAP through an annual award appropriated through the municipal budget.

B. Basis of Presentation

The accounting policies of the Township of Edison (the "Township"), Length of Service AwardProgram (LOSAP) (the "Program") conform to the accounting principles and practicesprescribed by the Division of Local Government Services, Department of Community Affairs,State of New Jersey, which is a comprehensive basis of accounting other than accountingprinciples generally accepted in the United States of America.

C. Description of Program

The Program was created in accordance with the Internal Revenue Code Section 457. TheProgram is offered to all volunteer members that meet the criteria set by the Township, andprovides for fixed annual contributions for all eligible members. The deferred compensation isnot available to volunteer members until termination, retirement, death, or unforeseeableemergency. Earnings of the Program and contributions by the Township are subject to vestingprovisions of the plan and are exempt from income taxes until distribution to the participatingvolunteers.

The Program is offered by the Township to the participants through Variable Annuity LifeInsurance Company (VALIC).

All amounts of compensation deferred under the Program, all property and rights purchased withthose amounts, and all income attributable to those amounts, property, or rights, are (until paid ormade available to the volunteer or other beneficiary) solely the property and rights of theTownship (without being restricted to the provisions of benefits under the Program), subject onlyto the claims of the Township'S general creditors. Participant's rights under the Program areequal to those of general creditors of the Township in an amount equal to the fair market valueof the deferred account for each participant.

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

C. Description of Program (Cont'd.)

In accordance with standards established by the Governmental Accounting standards Board, theProgram balances are displayed in the Trust Fund of the Township. The Program is tax exemptin Internal revenue Code Section 4S7.

D. Amount of Contribution

The LOSAP shall provide for annual contributions of $1,000.00 to each eligible member whoshall be within the top SO% of responders in each volunteer organization.

NOTE 2: QUALIFICATIONS

The LOSAP shall provide for annual contributions for each eligible member who meets thecriteria as follows:

Shall provide for annual contributions of $1,000.00 to each eligible member who shall bewithin the top SO% of responders in each volunteer organization.

The estimated cost of the program has been calculated to be $100,000.00 for regular annualservices.

Eligible members will be ranked annually on an organizational list based upon the number ofcalls responded to. The LOSAP shall provide for annual contributions of $1,000.00 to eacheligible member who shall be within the top SO% of responders in each volunteer organization.Eligible members shall be those who:

a) Provide services on an ambulance at least one night a week or an equivalent forty (40)hours a month during weekdays or weekends;

b) Attend at least fifty (SO) percent of all regularly scheduled and special drills/trainingexercises (not less than twelve (12) a year) averaging two hours each;

c) Recertify every other year for CPR;

d) Complete forty-eight (48) hours of New Jersey State approved continuing educationcredits every three years;

e) Attend annual refresher courses in hazardous material, infectious disease control andambulance safety;

f) Attend annually an EMT-D refresher course;

g) Attend at least twenty-five (2S) percent of all regularly scheduled and special meetings ofthe squad, missing no more than three in a row.

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Other Supplementary Data

-180 -

TOWNSHIP OF EDISONMIDDLESEX COUNTY NEW JERSEY

COMBINED BALANCE SHEET ALL FUNDSFOR THE YEAR ENDING DECEMBER 31, 2011

MEMORANDUM ONLY TOTALSWATER SEWER PUBLIC GOVERNMENTAL DEC. 31, DEC. 31,

CURRENT GENERAL UTILITY UTILITY ASSISTANCE FIXED ASSETS 2011 2010ASSETS FUND TRUST FUND CAPITAL FUND FUND FUND FUND (ill:lAUDITED

Cash and Investments $29,962,040.25 $39,089,139.05 $24,624,148.70 $122,540.30 $4,960,959.69 $42,915.16 $98,801,743.15 $89,976,376.17Special Emergency Note 1,270,000.00 1,270,000.00Accounts Receivable:State and Federal Grants 1,155,097.93 2,640,695.77 228,687.48 4,024,481.18 5,312,457.56Due from State ofN.J. 8,900.82 8,900.82 10,500.00Taxes, Assmts., Liens andUtility Charges 492,044.18 171.00 45,901.03 538,116.21 882,799.29

Interfund Loans 1,895,638.71 51,058.10 11,617.13 93,652.70 2,051,966.64 1,537,628.29Other Accounts Receivable 64,178.00 64,178.00 127,159.83Property Acquired for Taxes atAssessed Value 3,948,486.98 3,948,486.98 3,948,486.98

Deferred Charges to Revenue ofSucceeding Years 1,270,000.00 4,817.58 16,595.31 1,291,412.89 833,870.34

Deferred Charges to Future TaxationGeneral Capital 74,470,618.59 74,470,618.59 73,483,919.94

Fixed Assets - General 168,407,973.00 168,407,973.00 168,407,973.00Fixed Capital - Utilities 6,978,627.29 6,834,989.83 13,813,617.12 12,613,617.12Fixed Capital Author. and Uncompl. -....... Utilities 1,965 970.17 1 965,970.17 3 165,970.17CIJ.......

Total Assets $38,732,208.87 $41,781,063.92 $99,387,632.77 $7,117,602.30 $15,188,068.73 $42915.16 $168407973.00 $370,657464.75 $360,300,758.69

LIABILITIES, RESERVESAND FUND BALANCE

Bonds, Loans and Notes Payable 1,270,000.00 65,514,598.31 963,515.00 5,956,500.00 $73,704,613.31 78,852,914.66Prepaid Taxes, Assmts. andUtility Charges 2,124,746.74 2,124,746.74 1,377,316.12

Tax, Assmt. Lien and Utility ChargeOverpayments 59,267.78 65,546.40 124,814.18 498,210.05

Appropriation Reserves 6,349,726.82 397,222.54 6,746,949.36 7,257,118.88Budgetary Encumb.fAccts. Payable 2,552,795.06 1,844,306.59 1,592,725.20 264,136.59 6,253,963.44 4,822,458.66Other Liabilities 1,900.00 3,375,797.29 4,817.58 24,390.73 3,406,905.60 1,726,245.08Amts. Pledged to Specific Purposes 8,258,316.56 33,480,916.54 3,165,793.61 782,520.64 42,915.16 45,730,462.51 50,707,184.80Escrow Funds 3,001,396.09 3,001,396.09 3,340,255.85Improvement Authorizations 26,894,574.98 996,305.14 27,890,880.12 9,798,472.90Interfund Loans 1,866,229.22 77,173.41 3,654.26 11,818.16 93,091.59 2,051,966.64 1,537,628.29Investments in Governmental Fixed Assets 168,407,973.00 168,407,973.00 168,407,973.00Res. for Amort. of Costs of FixedCapital Acquired or Author. 6,015,112.51 2,102,010.00 8,117,122.51 8,072,122.51

Reserve for Certain Assets Acquiredor Receivable and Inventories 4,501,496.86 171.00 45,901.03 4,547,568.89 5,044,474.97

Fund Balance 11,747,729.83 1,303.00 2,216,286.41 122,339.05 4,460444.07 18,548,102.36 18,858,382.92

Total Liabilities, Reservesand Fund Balance $38,732,208.87 $41,781,063.92 $99387,632.77 $7,117,602.30 $15,188,068.73 $42915.16 $168,407,973.00 $370 657 464.75 $360,300,758.69

COMPARATIVE STATEMENT OF OPERATIONS ANDCHANGE IN FUND BALANCE - CURRENT FUND

REVENUE AND OTHER YEAR 2011 YEAR 2010INCOME REALIZED AMOUNT % AMOUNT %

Fund Balance Utilized $9,889,276.83 2.65% $9,904,534.95 2.71%Miscellaneous - From Other ThanLocal Property Tax Levies 29,094,484.63 7.80% 32,100,014.20 8.77%

Collection of Delinquent Taxesand Tax Title Liens 233,642.59 0.06% 3,136,901.25 0.86%

Collection of Current Tax Levy 328,004,819.42 87.89% 316,505,207.69 86.47%Other Credits to Income 5,960,309.39 1.60% 4,370,902.96 1.19%

Total Income 373,182,532.86 100.00% 366,017,561.05 100.00%

EXPENDITURES

Budget Expenditures:Municipal Purposes 121,359,084.75 32.76% 117,217,544.23 32.87%Local School Purposes 1,130,587.50 0.31% 1,206,925.00 0.34%Special District Taxes 9,017,457.01 2.43% 9,369,750.1 0 2.63%County Taxes 51,496,159.19 13.90% 47,320,411.31 13.27%Local School Taxes 186,686,376.00 50.39% 180,716,981.00 50.67%Open Space Trust 713,954.93 0.19% 732,228.20 0.20%Other Charges to Income 51,417.88 0.01% 81,283.16 0.02%

Total Expenditures 370,455,037.26 100.00% 356,645,123.00 100.00%

Excess Revenues 2,727,495.60 9,372,438.05

Add: Expenditures Included AboveWhich are by Statute DeferredCharges to Succeeding Years 5,658,541.63 829,052.76

Statutory Excess to Fund Balance 8,386,037.23 10,201,490.81

Fund Balance January 1 13,250,969.43 12,954,013.57

21,637,006.66 23,155,504.38

Less:Utilization as AnticipatedRevenue 9,889,276.83 9,904,534.95

Fund Balance December 31 $112747,729.83 $13,250,969.43

-182 -

STATEMENT OF OPERATIONS AND CHANGE INFUND BALANCE - SEWER UTILITY OPERATING FUND

REVENUE AND OTHER YEAR 2011 YEAR 2010INCOME REALIZED AMOUNT % AMOUNT %

Fund Balance Anticipated $2,043,246.00 13.89% $2,043,246.00 13.36%Collection of Sewer Rents 11,934,971.71 81.16% 11,773,207.53 76.94%Sewer Connection Fees 23,148.64 0.16% 313,872.98 2.05%Miscelaneous Revenues 77,200.77 0.52% 248,139.50 1.62%Other Credits to Income 627,301.72 4.27% 922,977.76 6.03%

Total Income 14,705,868.84 100.00% 15,301,443.77 100.00%

EXPENDITURES

Budget Expenditures:Operating 12,322,034.00 93.27% 12,297,034.00 92.61%Debt Service 315,855.44 2.39% 398,425.50 3.00%Capital Improvements 185,000.00 1.40% 185,000.00 1.39%Deferred Charges and StatutoryExpenditures 386,992.00 2.93% 296,303.70 2.23%

Other Charges to Income 982.50 0.01% 102,298.71 0.77%

Total Expenditures 13,210,863.94 100.00% 13,279,061.91 100.00%

Excess In Revenues 1,495,004.90 2,022,381.86

Add: Expenditures Included AboveWhich are by Statute Deferred Chargesto Future Budgets 16,595.31

Statutory excess to Fund Balance 1,511,600.21 2,022,381.86

Fund Balance January 1 4,968,587.27 4,989,451.41

6,480,187.48 7,011,833.27

Decreased by:Utilized as Anticipated Revenue 2,043,246.00 2,043,246.00

Fund Balance December 31 $4,436,941.48 $4,968,587.27

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COMPARATIVE SCHEDULE OF TAX RATE INFORMATION

Tax Rate:

Apportionment of Tax Rate:

Municipal: (1) 1.041

0.073

0.722

2.642

Municipal Library

County: (2)

Local School:

Assessed Valuation (Taxable):

2011

2010

2009

$7,114,250,291

$7,305,565,860

$7,336,659,648

(I) Includes Open Spaces Tax(2) Includes Open Spaces Tax

Note: Under the provisions of Chapter 73, L.1976 (R.S. 54:4-46.1), the County Board of Taxationestimated the amount of Veterans' and Senior Citizens' tax deductions, etc., to be $728,000.00for the year 2011.

COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY

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

CURRENTLYPercentage

Cash ofYear Tax Levv Collections Collection

CY 2011 $328,724,109 $328,004,819 99.78%CY2010 319,760,759 318,844,895 99.71%TY2009 161,960,621 157,667,346 97.35%

DELINQUENT TAXES AND TAX TITLE LIENS

This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes andtax title liens, in relation to the tax levies of the last three years.

Amount of Amount of PercentageTax Title Delinquent Total of

Year Liens Taxes Delinquent Tax Leyy

CY 2011 $459,733 $32,311 $492,044 0.15%CY2010 465,866 78,385 544,251 0.17%TY2009 199,062 3,242,613 3,441,675 2.13%

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PROPERTY ACQUIRED FOR TAX TITLE LIEN LIQUIDATION

The value of property acquired by liquidation of tax title liens on December 31, on the basis of thelast assessed valuation of such properties was as follows:

Amount

CY2011CY2010TY2009

$3,948,487.003,948,487.003,932,030.00

COMPARISON OF SEWER UTILITY LEVIES AND COLLECTIONS

Fiscal SEWER UTILITYYear Levies Collections*

CY2011 $11,654,802.59 $11,933,500.63CY2010 11,207,651.25 11,773,206.39TY2009 5,506,794.74 5,347,217.41

*Inc1ude collections against prior year balances.

COMPARATIVE SCHEDULE OF FUND BALANCES

Sewer UtilityOperating Fund

Utilized inBudget of

Year SucceedingEnded Balance Year

CY2011 $11,747,729.83 $8,309,881.10CY 2010 13,250,969.43 9,889,276.83TY2009 12,954,013.57 9,904,534.95

CY 2011 $110,722.14 (1)

CY2010 110,722.14 (I)

TY2009 110,722.14 (1)

CY 2011 $4,436,941.48 $3,650,156.54CY2010 4,968,587.27 2,043,246.00TY2009 4,989,451.41 2,043,246.00

Current Fund

Water UtilityOperating Fund

(1) See Notes to Financial Statements regarding the privatization of the Water Utility.

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TOWNSHIP OF EDISONCOUNTY OF MIDDLESEX, NEW JERSEY

REQUIRED SUPPLEMENTARY INFORMATIONPOSTEMPLOYMNET HEALTH BENEFITSSCHEDULE OF FUNDING PROGRESS

Actuarial Actuarial Actuarial UAALas aValuation Value of accrued Unfunded AAL Funded Covered Percentage of

Date Assets Liability (AAL) (UAAL) Ratio Payroll Covered Payroll

12/31/08 $ $ 208,850,224 $ 208,850,224 0.00% $ 68,249,481 306.01%

12/31/11 264,749,908 264,749,908 0.00% 67,566,986 391.83%

OFFICIALS IN OFFICE AND SURETY BONDS

The following officials were in office on December 31, 2011:

Antonia Ricigliano

Robert DiehlRobert KarabinchakAlvaro GomezThomas LankeyWayne MascolaMelissa Peril steinSudhanshu Prasad

Maureen Ruane

Karl Kemm, Esq.

Thomas BryanLarry PollexDenise Halliwell

Jay P. ElliotJeff Roderman

Reina A. MurphyRichard LorentzenVictoria RiddleGary PriceKelly SommerLaura PopickLisa LaRue

- Mayor

- Council President- Council Vice President- Councilperson- Councilperson- Councilperson- Councilperson- Councilperson

- Business Administrator

- Director of Law, Township Attorney

- Chief of Police- Acting Chief Financial Officer, Director of Finance- Director of Parks & Recreation

- Health Officer, Director of Health & Human Resources- Director of Public Works

- Township Clerk, Supervisor of Elections- Tax Collector, Tax Search Officer- Tax Assessor- Presiding Municipal Magistrate- Court Administrator- Purchasing Agent- Construction Code Official

All of the above bonds were examined and found to be properly executed.

AMOUNTOF BOND NAME OF CORPORATE SURETY

$50,000.00 - Blanket Selective Insurance Company of America

50,000.00 - Blanket Selective Insurance Company of America

50,000.00 - Blanket Selective Insurance Company of America500,000.00 Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America

50,000.00 - Blanket Selective Insurance Company of America

50,000.00 - Blanket Selective Insurance Company of America780,000.00 Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America50,000.00 - Blanket Selective Insurance Company of America

TOWNSHIP OF EDISON


PART IV

GENERAL COMMENTS AND RECOMMENDATIONS

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TOWNSHIP OF EDISONCOUNTY OF MIDDLESEX, NEW JERSEY

YEAR ENDED DECEMBER 31, 2011

GENERAL COMMENTS

An audit of the financial accounts and transactions of the Township of Edison, County of Middlesex, NewJersey, for the transition year ended December 31, 2011, has been completed. The General Comments areherewith set forth:

Scope of Audit

The audit covered the financial transactions of the Finance Department and the other various offices anddepartments collecting fees within the Township of Edison, County of Middlesex, New Jersey.

The audit did not and could not determine the character of services rendered for which payment had beenmade or for which reserves had been set up, nor could it determine the character, proper price or quantity ofmaterials supplied for which claims had been passed. Cash on hand was counted and cash and investmentbalances were reconciled with independent certifications obtained directly from the depositories. Revenuesand receipts were established and verified as to source and amount insofar as the records permitted.

INTERNAL CONTROL MATTERS

In planning and performing our audit of the financial statements of Township of Edison, County ofMiddlesex, New Jersey as of and for the transition year ended December 31, 2011, in accordance withauditing standards generally accepted in the United States of America, we considered the Township's internalcontrol over financial reporting (internal control) as a basis for designing our auditing procedures for thepurpose of expressing our opinion on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of the Township's internal control. Accordingly, we do not express an opinion onthe effectiveness of the Township'S internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph andwould not necessarily identify all deficiencies in internal control that might be significant deficiencies ormaterial weaknesses.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatements ona timely basis.

A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affectsthe entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance withgenerally accepted accounting principles such that there is more than a remote likelihood that a misstatementof the entity's financial statements that is more than inconsequential will not be prevented or detected by theentity's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not be prevented ordetected by the entity's internal control.

With respect to the reporting of internal control matters, standards require that only a significant deficiencyand/or a material weakness need be reported in writing to management and those charged with governance.

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GENERAL COMMENTS

INTERNAL CONTROL MATTERS (CONT'D.)

The control deficiencies reported are not considered to be material weaknesses. In addition, except for item2011-1, these control deficiencies are not required to be reported in writing, however, control deficiencies arepresented to management and those charged with governance in this report as a means to present thosematters identified in review of the Township's internal controls and as a means to inform management andthose charged with governance as to the auditing standards requirements with respect to internal controls.

As indicated below, we identified certain deficiencies in internal control that we consider to be controldeficiencies.

In addition, during our audit, we noted certain matters involving the internal control and other operationalmatters that are presented for your consideration. This letter does not affect our report dated August 1, 2012on the financial statements of the Township of Edison. Our comments and recommendations, which havebeen discussed with appropriate members of management, are intended to improve the internal control orresult in other operating efficiencies.

Significant Deficiencies

We consider the following deficiency to be a significant deficiency in internal control:

2011-1 Payroll Function

We noted that any Finance Department oversight of the payroll function ceased during the current auditperiod, and the CFO was not provided any records relating to payroll and did not perform any review oroversight procedures for the time keeping and employee pay processing functions.

This matter is discussed more fully in a separate section of the general comments.

Control Deficiencies:

We consider the following deficiencies to be control deficiencies in internal control:

2011-2 Segregation of Duties

Conditions exist whereby the same person may collect, record and deposit cash receipts in the followingoffices - Licenses & Permits, Recreation, Animal Shelter, Engineering, Police Records Clerk, Health, andConstruction Code.

This condition is the result of the staffing levels of the respective offices.

2011-3 Documentation of Components ofInternal Control

As required by Statement on Auditing Standards No. 115, a new standard with an implementation schedule,which covers audits of financial statements for periods ending on or after December 15, 2006, entities subjectto audit are required to provide independent auditors with documentation of the various components of itsinternal controls.

The Township should consider documenting the various components of its internal controls. This matter isdiscussed more fully in a separate section of the general comments.

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GENERAL COMMENTS

INTERNAL CONTROL MATTERS (CONT'D.)

2011-4 Controls for Tracking of Compensated Absences

The Township's payroll processing system is the logical focal point for internal controls over the recordkeeping function for accumulated sick and vacation days. The system is capable of tracking days earned, usedand remaining, and can provide a payroll by payroll record to each employee of days used. The mathematicalintegrity of the system and its reporting capabilities make the system's control features superior to anyalternative recordkeeping process. However, and as has been the practice for many years, we noted that thePolice and Fire Divisions maintain the "official" records of compensated absences earned, used and availablefor each of their employees. These off-system records may be subject to the risk that errors and omissions inthe entries of activity could occur and remain undetected, as the payroll or finance offices perform no formalproofs. The Township has purchased a new financial/human resource module (Edmunds) software thatincludes record keeping of compensated absences that has yet to be fully implemented by the end of year2011. As discussed more fully in a subsequent comment, no effort has been undertaken to bring the trackingof police and fire compensated absences under the umbrella of the new system.

OTHER MATTERS

Contracts and Agreements Requiredto be Advertised Per NJ.S.A. 40A: 11-4

NJ.S.A. 40A: 11-4 states "every contract awarded by the contracting agent for the provision or performanceof any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded onlyby resolution of the governing body of the contracting unit to the lowest responsible bidder after publicadvertising for bids and bidder therefore, except as is provided otherwise in this act or specifically by anyother law. The governing body of a contracting unit may, by resolution approved by a majority of thegoverning body and subject to subsections b. and c. of this section, disqualify a bidder who would otherwisebe determined to be the lowest responsible bidder, if the governing body finds that it has had prior negativeexperience with the bidder. No work, materials or supplies shall be undertaken, acquired or furnished for asum exceeding in the aggregate $21,000.00 except by contract or agreement."

The governing body of the Municipality has the responsibility of determining whether the expenditures in anycategory will exceed $21,000.00 within the fiscal year. Where question arises as to whether any contract oragreement might result in violation of the statute, the Township Counsel's opinion should be sought before acommitment is made.

On June 9, 2010, the Local Public Contracts Law was amended, effective on January 1, 2011. Theamendments address the bid threshold (Section 7, NJ.S.A. 40A:1l-3), thereby increasing the amount from$21,000.00 to $26,000.00 under which a contract may be awarded without public advertising. Furthermore, ifthe Township's Purchasing Agent is "Qualified" the Council may increase the bid threshold from $29,000 to$36,000. On May 5, 2011, a revised Local Finance Notice was issued which reduced the threshold for Non-QPA municipalities from $26,000 to $17,500. Although the Township does have a QPA, the bid threshold hasbeen set by the governing body at $17,500.

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

Materials and Supplies:

Janitorial/Industrial/Hardware supplies; Office supplies; Medical supplies; Generator maintenance; Gasolineand diesel; Automated/Semi automated refuse containers; Ground materials; Art supplies and handicrafts;Infield mix

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GENERAL COMMENTS

Contracts and Agreements Requiredto be Advertised Per N.J.S.A. 40A:11-4 (cont'd.)

Equipment:

Sewer pump and generator rentals; Fire equipment and tools-supply and repair; Snow plows

Contracts:

Pavement miling and track coating; HVAC maintenance and repair; Jennifer Court sanitary sewer rehab;Emergency vehicle repair; Vineyard Road resurfacing; Bus services; Roof replacement at Toth Health Center;Pool renovations; Police division renovations

State Approved Contracts for the Following Purchases:

Automotive lubricants; Maintenance for emergency radio/telephone system; Tires and tubes; Purchase, repairand maintenance of radio communication equipment; Computer hardware, software and accessories;Automotive parts; Playground equipment; Ammunition; Police cruisers; Bullet resistant vests

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

Inasmuch as the system of records did not provide for an accumulation of payments for categories for theperformance of any work or the furnishing or hiring of any materials or supplies, the results of such anaccumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determinewhether any clear cut non-compliance existed. Our review revealed that the township is not renewing theprofessional contract agreements. While the responsibility of obtaining the professional contract agreementsrests with the township attorneys, the copies of the contracts and the resolutions should be filed with thePurchasing Agent to assure legal compliance prior to the payment of Township funds.

Any interpretation as to possible violation of N.J.S.A. 40A: 11-4 and N.J.A.C. 5:30-14 would be in theprovince of the municipal solicitor.

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GENERAL COMMENTS

Pay-to-Play and Business Registration Requirements

An anomaly exists in the "Pay-to-Play" statutes when they are matched with the LPCL requirements todetermine compliance requirements. The threshold for Pay-to-Play is set at $17,500, with no escalatorprovision. At the time c.271 was enacted, the bid threshold per the LPCL was also set at $17,500. However,effective July 1,2005, the bid threshold was increased to $21,000. Subsequent adjustments by the Governorpursuant to the enabling statute. This created a gap for compliance, as under c. 271, a contract not awardedusing a fair & open process and exceeding $17,500 triggers the filing of additional documentation relating toownership of the contracting entity and disclosure of political contributions. Since "Pay-to-Play" laws coverall contracts (not just professional services as some believe) any contract (or aggregation of purchases ofsimilar goods or services) that does not meet "fair and open" standards requires the Township to obtain thenecessary c. 271 documents. The provisions of c. 271 became effective on January 1, 2006. One of thebeneficial aspects of the Township's decision to operate its procurement function using a bid threshold of$17,500 is that the "Pay-to-Play" threshold and the LPCL threshold remain is synch.

Our audit indicated that the Township is not formally renewing the professional contract agreements forservices provided to the Planning Board. Greater coordination between the Planning Board Secretary, thePurchasing Agent, and the Township Attorney to assure all necessary forms are completed and resolutionspresented to the appropriate body for approval is indicated. While the responsibility of obtaining theprofessional contract agreements has been designated to the Township's attorneys, the copies of the contractsand the resolutions should be filed with the Purchasing Agent to assure legal compliance prior to payment ofTownship funds.

It is recommended that the Township obtain and file the renewed contracts for all professional servicevendors.

Collection of Interest on Delinquent Taxes and Assessments

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

The governing body, on January 27, 2010, adopted a resolution authorizing interest to be charged ondelinquent taxes and assessments, as follows:

8% Interest on Amounts up to $1,500.00 on Delinquent Tax and Assessment Accounts:

18% Interest on Amounts from $1,500.00 and above on Delinquent Tax andAssessment Accounts:

Ten (10) Day Grace Period

This resolution was subsequently amended pursuant to revisions to N.J.S.A. 54:4-67 to include a penalty of6% to be charged to delinquencies in excess of $10,000 at the end of the calendar year.

An examination of the collector's records indicated that interest on delinquencies was calculated inaccordance with the foregoing resolution, for items tested.

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GENERAL COMMENTS

Delinquent Taxes and Tax Title Liens

A tax sale was held on December 19,2011, and was complete. Properties that were in bankruptcy proceedingswere excluded from the sale. The status of these properties should be monitored to assure that the Townshipprotects its right to collect delinquent taxes and that these properties are exposed to tax sale proceedings at theearliest legal date.

The following comparison is made of the number of tax title liens receivable for December 31,2011 and forthe last two years:

Year Total Tax SewerLiens Liens Liens

CY 2011 66 64 2CY 2010 85 80 5TY 2009 43 41 2

The Township maintains a foreclosure program for tax title liens that become subject to In Rem Foreclosure.Subject liens have been assigned to attorneys and are in process of foreclosure.

State Tax Appeals

Based upon adjudication or settlement of taxpayer appeals filed with the New Jersey Tax Court, during 2011the Township of Edison paid refunds on State Tax Appeals in excess of $6,800,000.00. Of this total,$2,450,000 had been funded through prior year budget appropriations and "set-asides" from current taxcollections. The balance was financed over a five year term based upon a successful application to the LocalFinance Board. An additional appropriation of $2,000,000.00 was included in the Township's 2012 budget.

Based upon the provisions of the Tax Levy Cap Law, it has become increasingly difficult to fund the reservefor tax appeals through the budgetary process. Accordingly, funding of the reserve will likely be the result ofassessor certifications of tax collections from properties under appeal that have been reserved. This alternatefunding procedure is permitted by NJ.S.A. 54:3-27. Unfortunately, this method of funding results in a dollarfor dollar reduction in the Current Fund Balance available for budget balancing.

Although the Township has dramatically increased its provision for tax appeal losses, these efforts have notkept pace with the decline in the value of the Township's commercial and industrial ratable base.Furthermore, an equally large volume of appeals remain outstanding for the 2011 and 2012 assessment years.The harsh reality for the Township is that the impact of the economic recession on the commercial andindustrial tax base has been so severe that the tax appeal costs and settlements will demand an ever increasingpercentage of the Township's financial resources unless or until statutory relief is provided or a significanteconomic rebound occurs.

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GENERAL COMMENTS

Interfund Balances

At December 31, 2011 the balance sheets of the following funds include interfunds payable:

Current Fund:Due to Grant FundDue to Sewer Operating FundDue to Trust Fund

$1,834,673.01561.11

30,995.10

Trust-Other Fund:Due to Assessment Fund 20,063.00

Animal Control Fund:Due to Current Fund 100.41

Assessment Trust Fund:Due to Current Fund 18,760.00

Housing and Community Development Fund:Due to Current Fund 38,250.00

General Capital Fund:Due to Current Fund 3,654.26

Water Operating Fund:Due to Current FundDue to Water Utility Capital Fund

201.0311,617.13

Sewer Capital Fund:Due to Sewer Operating Fund 93,091.59

The amounts payable by the Sewer Capital Fund represents the cash transferred from the Operating Fund tofinance capital projects of the Utility. If permanent financing of this project through the issuance of debt isnot contemplated, the Township should consider a budget appropriation to eliminate the loan and finance thesewer project from the fund balance of the Water Operating Fund.

Subsequent to the balance sheet date, the Township liquidated the majority of the interfunds. As a result, norecommendation is made.

Investment of Idle Funds

The chief financial officer had most of the idle funds of the Township invested in the interest-bearinginvestments or accounts from January 1, 2011 to December 31, 2011. Earnings from the investments areshown as revenue in the various accounts of the Township as of December 31, 2011. The investmentprogram instituted by the finance officer was complete with minimal balances remaining in demand accounts.This policy complied with N.J.S.A. 40A: 5-14 in all respects.

All investments held by the Township were directly confirmed as of December 31,2011.

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GENERAL COMMENTS

Purchase Order System and Encumbrance System

The Township budgetary operation is on a full encumbrance system with the exception of payrolls and otherdirect costs. All purchases are made directly by the purchasing department or subsequently confirmed on anemergency basis. Tests of the system disclosed that compliance during 2011 was good. Blanket orders andother outstanding encumbrances were reviewed at the close of the year, and adjustments and cancellationswere made where appropriate to reflect actual commitments outstanding for budgetary control. Complianceto certification of availability of funds was reviewed and found to be good.

Other Officials Collecting Fees

Our reviews of the records maintained for other officials collecting fees were designed to determine thatminimum levels of internal controls and accountability were met, that cash receipts were deposited or turnedover to the Treasurer's accounts within a 48 hour period as required by N.J.S.A. 40A: 5-15, that amountscharged were in accordance with the provisions of the Township Code and that monthly financial reports arebeing submitted to the Finance Department timely. There were no exceptions noted for items tested.

Payment of Claims

The examination did not and could not determine the character of services rendered for which payment hadbeen made or for which reserves had been set up, nor could it determine the character, proper price or quantityof materials supplied for which claims had been passed. Authorization for payment of claims is delegated tothe Director of Finance and bill lists are submitted to the Township Council for approval and recorded as asupplement to the official minutes.

Claims were examined on a test basis for the year under review and were found to be in good order.

Sewer Utility Fund

The Sewer Utility operations for 2011 as shown on Exhibit "E-l" resulted in excess revenues of$1,495,004.90. The calculation of excess revenues for the purpose of preparing the Annual Debt Statementresulted in an excess of $868,685.68, which allows for the total deductions of the Sewer utility'S authorizeddebt of $6,698,950.00 in the calculation of statutory net debt. A reconciliation of excess revenues fromoperations (Exhibit E-l) and the excess in revenues for debt statement purposes is included in Note 4 of the"Notes to Financial Statements".

We noted that the Township did not issue bills to other municipalities and/or non-Edison homes andcommercial establishments that are connected to the Edison sanitary sewer system to transmit wastewater tothe MCUA treatment facility. We also noted that bills from other municipalities which accept Edison effluentwere not received or paid. Finally, we noted no audit evidence indicating any testing of effluent from theTownship's largest industrial sewer users for determination of pollutant loading or billings to these usersbased on the levels of pollutant loading indicated.

It is recommended:

That all sewerage form non-Edison origins be metered and billed in accordance with existing agreementsand/or the Township's sewer rate ordinance.

That the industrial and commercial pollutant loading testing program be reestablished and that billings to suchusers be generated based upon the results of such testing.

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GENERAL COMMENTS

Water Utility Fund

The operation of the Township's water supply facilities was privatized as of July 1, 1997, for a minimumperiod of twenty years. The financial records of the Water Utility indicate that at the time of privatization,that over $955,000 of capital costs had been temporarily financed with loans from the Township's sewerutility. This situation limits the use of sewer operating surplus to finance system improvements. Since there isno revenue stream to finance these costs, the Division of Local Government Services has indicated that theTownship needed to address this matter in the SFY 2010 budget. During 2011 and 2010, the Township issuedBond Anticipation Notes in the amount of $963,515.00 to liquidate the costs financed by the sewer utilityoperating fund.

The issuance of bond anticipation notes will require principal pay-downs commencing in 2013, whether ornot the notes are permanently financed. These payments will increase the amounts required to be fundedthrough the Township's general budget.

Personnel Records

The Township's personnel records have been maintained on a proprietary software package built "in-house"by former employees. This software is not integrated into the payroll system, and has had several issuesrelating to functionality and database maintenance. A review of these records revealed that the Township hasnot been able to maintain accurate records of employees eligible to receive health benefits. The Townshiphad the capability to compile a list of employees, active and retired, their dependents, and their coverage type.The program has not been working properly, and as result it has not been maintained in over three years.Essentially, this software problem has precluded the maintenance of a master list of those eligible for benefits.However, the absence of such a list would not eliminate the Township's ability to review claims for propriety,as it could verify information to active employees and recent retirees from the payroll system. However theinternal problem was compounded by the lack of detailed lists of claims paid by their health insurance carrierand as a result, there was no existing verification procedure to assure that claims were being paid only foractive employees, eligible retirees, or those paying for COBRA coverage.

The Township has continued to request and receive the detailed lists of claims being paid in order to verifythe accuracy of their health insurance bills.

We also noted that the terms of employment for a few management level employees have been establishedthrough individual employment agreements. The Township currently consults with its benefits experts andlegal advisors to assure that there are no conflicts with the anti-discrimination provisions of the internalrevenue code. We suggest that such consultations be memorialized by a writing as evidence of due diligenceregarding compliance with anti-discrimination requirements for any employee with a negotiated employmentagreement.

Financial and Budgetary Records

The Township maintains a detailed, computerized subsidiary ledger for each of its budgets. The softwarepackage permits the entry of non-cash charges and adjustments. These adjusting entries are made in thegeneral journal and are recorded in the general ledger control account.

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GENERAL COMMENTS

Financial and Budgetary Records (cont'd.)

We noted that there was one budget line item that was overexpended in the Sewer Utility Operating Fund andone budget line item was overexpended in the Water Utility Operating Fund. The amounts overexpendedwere raised in the 2012 budget.

We recommend that budget over expenditures be avoided in compliance with statute.

Effectively, in 2008, the payroll function was completely subsumed by the Human Resources division. Thisaction may have been taken as a cost savings measure, or it may have simply evolved in the void created bythe recent turnovers in the CFO position. However it developed, the effect of this change in organizationalstructure is a weakening of the Township's internal control structure. In an effective control environment,Human Resources would be responsible for establishing personnel files for all new hires, including pay ratesand ranges in pay based on collective bargaining agreements and other changes. Human Resources would alsobe responsible for deleting employees from active rosters upon retirement or separation of services. ThePayroll Division's responsibilities would include the periodic receipt of time sheets (attested to by supervisorystaff) and the processing of time worked, paid leave and unpaid leave during the period to produce employeepay checks/direct deposits. To optimize internal control, payroll personnel should never have the ability tocreate or modify employee files and pay rates, and Human Resource personnel should never have the abilityto process employee pay.

In the current environment, it is possible for a single person to completely control payroll processing with nosystemic checks built-in. This greatly increases the risks, both intentional and unintentional, that incorrect orerroneous payments could be made for time not worked.

Discussion with current management has indicated a willingness to address this matter in the next budgetcycle through the reassignment of tasks and personnel, if necessary.

It is recommended that the payroll processing function be re-established under the authority and supervisionof the CFO.

We also noted that, due to an apparent incompatibility between the payroll and financial accounting softwarethat payroll costs are required to be posted manually into the financial accounting records from payrolldistribution reports. We believe that the financial records need to capture the more detailed payroll costinformation from the payroll system, and this information needs to be posted concurrently with each payrollprocessed. To accomplish this objective, the payroll system will need to be integrated into the financialaccounting system, and the charts of accounts for payroll and budgetary accounting will need to be expandedand coordinated to capture detailed payroll data on a timely basis. Revisions to the Township's payroll systemare currently being explored. Efforts to fully integrate the systems are currently ongoing.

In addition it was noted the Township's financial statements included a Reserve for Green Acres Debt. Thereserve was established by a budget appropriation during SFY 2002. The purpose of the reserve was for theaccrued interest on the green acres projects. The final payment schedules were not finalized until 2008 andincluded the accrued interest in the draw down schedules. There have been no new loans pending and as aresult the balance of the reserve has remained unchanged. The current final maturities of the loans range from2018 through 2023. We suggest that the Township amortize the remaining balance of the reserve over the lifeof the loans and may include a portion as revenue in the subsequent budget periods.

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GENERAL COMMENTS

Condition of Records - Tax Collector's Office

The condition of the records maintained by the Division was good. Computerized cash receipt records wereproved to manual controls daily and in total monthly. The Comptroller obtains relevant reports relating tobillings, cash collections and balances from the Tax Collector each month and proves general ledger balancesto these records.

Dedication by Rider

During our audit we noted several Trust Fund reserves in which Dedication by Rider resolutions have notbeen prepared for Council approval in order to be submitted for approval by the Division of LocalGovernment Services. In certain instances, corrective actions have been taken in 2012.

It is recommended that all trust fund reserves that require Dedication by Rider approval by Council beprepared in order that the resolution can be submitted to the Division of Local Government Service for theirapproval.

Implementation of P.L. 2007, c.92 Changes

During 2007, the State enacted legislation that impacted the Township during its SFY 2009 budget andrequired a review of the status of the current employee rolls. This legislation created a new retirementprogram for certain classes of employees that is a defined contribution retirement program rather than thedefined benefit programs that the existing PERS and PFRS systems represent. The law also precludespension system participation for professionals providing services under professional services agreements. Ofadditional significance is the provision within this legislation that caps future accumulations of sick andvacation pay that may be paid to employees at separation from service, and limits carryovers of unusedvacation days to one year except for circumstances of declared statewide emergencies. It is essential that boththe Human Resource and Payroll divisions be fully conversant with the provisions of this legislation to assurethat new employees are properly enrolled and that compensated absences are capped as required.

In the prior year audit we noted that at a minimum, the Township should review its current employee rosterand identify any current employees who may be required to migrate to the new pension program, and identifypositions and personnel that, in the event of a break in service as defined in the law, would also be forced outof the existing system. The status of any employee subject to state licensure and not specifically exemptedform the law must be reviewed, in the context of both the IRS regulations for determination ofemployee/independent contractor status and the provisions of this legislation. In this environment, the notes tofuture financial statements relating to the accumulated liability should include dual reporting; First, the totalvalue of days earned and unused available to employees as leave, and, Second, the maximum terminal leavepayments that would be required at the close of each year based upon the new limitations imposed by thislaw. We would also suggest that the utilization of sick days continued to be monitored to determine if thisnew legislation has the unintended consequence of increased utilization of sick days. Should utilization ofsick days increase, the Township could face additional overtime costs or a need to increase staffing levels.The Township has begun the process mentioned above. Computerized spreadsheets are used to show theinformation on a department by department level. The individuals within the department are than shown withthe number of hours and the calculated balances. However, the police an fire departments continue tomaintain their own records and have not integrated into the new financial/human resource module (Edmunds)software.

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GENERAL COMMENTS

Administration and Accounting for State Grant Programs

During 2011, the Township operated programs, which were funded in whole or in part by state or federalgrant awards. As part of the acceptance of these funds, the Township is required to make assurances to thegrantor agency that it will comply, in its general operations as well as in the operation of grant fundedprograms, with various laws and regulations. In addition, the individual grant contracts impose specificcompliance requirements for the operations of each program. The examination of these grant programsindicated that the Township has expended grant funds during 2011 for the purposes authorized and nomaterial weaknesses in the internal control system or material instances of noncompliance were noted.

We noted that the Township continues to carry unexpended balances of state awards that are several yearsold. This condition may have resulted from the decentralized management of the various grant programs. Inthe current environment, it is possible that grant program coordinators may have reported expenditures thatwere not charged to grant program appropriations. We suggest that the Township continue to monitor prioryear unexpended grant funds and proper disposition should be made in compliance with the terms of grantawards.

It was also noted that the Schedules of Federal Awards were not complete in all respects. In addition, as withother local entities, due to weakness in the grant notification process followed by certain agencies, the pass-through federal and state assistance to the Township, the Township often does not receive accurate and timelyinformation with respect to the grant funding sources, along with the relevant CFDA and account numberinformation from its grantor agencies, which can inhibit the preparation of these financial assistanceschedules.

In accordance with OMB Circular A-l33 and NJ OMB Circular 04-04, the responsibility of preparing theSchedules of Federal Awards is that of the Township. At a minimum, the schedule shall (1) list individualfederal or state programs by agency, and (2) provide total awards expended for each individual Federal orState program and the CFDA or State account number.

The audit procedures, which were applied in the tests of grant programs, did not disclose material instances ofnoncompliance with the terms and conditions of the grant agreements and assurances made in acceptance ofthese grant funds.

Internal Control Documentation

The Township has initiated the process of documenting its internal controls. This course of action will servethe purpose of meeting certain requirements as set forth by the Statement on Auditing Standards 115. Wesuggest the Township continue this process and also consider utilizing the framework established by theCommittee of Sponsoring Organizations of the Treadway Commission (COSO) for its documentation, whichincludes the five components of internal controls, as follows: Control Environment; Risk Assessment; ControlActivities; Information and Communication; and Monitoring. In addition, we suggest the documentationshould also include the internal controls that exist over grant compliance.

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GENERAL COMMENTS

Compliance with New Jersey Administration Code 5:30:

The Local Finance Board, State of New Jersey, adopted the following requirements, previously identified as"technical accounting directives", as codified in the New Jersey Administration Code. A summary of thesecodes, including the status of the Township's compliance, is as follows:

N.J.A.C. 5:30-5.2 - Encumbrance Accounting: This directive requires the development and implementation ofaccounting systems, which can reflect the commitment of funds at the point of commitment. The Townshipof Edison is in full compliance with this directive.

N.J.A.C. 5:30-5.6 - Fixed Asset Accounting: This directive requires the development and implementation ofaccounting systems which assign values to covered assets and can track additions, retirements and transfers ofinventoried assets. The Township is not in compliance with this directive.

N.J.A.C. 5:30-5.7 - General Ledger Accounting System: This directive requires the establishment andmaintenance of a general ledger for, at least, the Current Fund. The Township is in full compliance with thisdirective, and maintains a general ledger for all of its Funds subject to audit.

Compliance with Local Finance Notices

Local Finance Notice (LFN) No. 92-15 requires that the Township prepares and files a corrective action planin accordance with the approved schedule. A corrective action plan was filed for CY 2010 as required.

In accordance with LFN No. CFO-lO, Uniform Construction Code expenditure records were tested forcompliance with N.J.A.C. 5-23.17(C) 2, and no exceptions were noted.

PENDING LITIGATION

At December 31,2011 and at the date of this report, the Township had pending litigation outstanding. Thislitigation is more fully discussed in Note 16.

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RECOMMENDA nONS

It is Recommended:

That the Township obtain and file the renewed contracts for all professional service vendors.

That all sewerage form non-Edison origins be metered and billed in accordance with existing agreementsand/or the Township's sewer rate ordinance.

That the industrial and commercial pollutant loading testing program be reestablished and that billings to suchusers be generated based upon the results of such testing.

That budget over expenditures be avoided in compliance with state statute.

That the payroll processing function be re-established under the authority and supervision of the CFO.

That all trust fund reserves that require Dedication by Rider approval by Council be prepared in order that theresolution can be submitted to the Division of Local Government Service for their approval.

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**********The Township has implemented corrective actions to resolve the prior audit findings.

During the course of our audit we received the complete cooperation of the various officials of the Township,and the courtesies extended to us were greatly appreciated.

Should any questions arise as to our comments or recommendations or should you desire assistance inimplementing our recommendations, please do not hesitate to contact us.

Respectfully submitted,~;~.A.Robert S. Morrison, CPA, RMANo. 412

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