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TOWNSHIP OF JACKSON

AUDIT REPORT FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON COUNTY OF OCEAN TABLE OF CONTENTS

EXHIBIT PAGE

PART I

Independent Auditor’s Report

Government Auditing Standards

Financial Statements – Regulatory Basis:

Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis A

Statements of Operations and Changes in Fund Balance – Regulatory Basis A-1

Statement of Revenues – Regulatory Basis A-2

Statement of Expenditures – Regulatory Basis A-3

Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis B

Statements of Operations and Changes in Fund Balance – Regulatory Basis B-1

Statement of Revenues – Regulatory Basis B-2

Statement of Expenditures – Regulatory Basis B-3

Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis C

Statement of Fund Balance C-1

Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis D

Statements of Fixed Assets & Fund Balance - Regulatory Basis E

Statements of Assets & Liabilities - Regulatory Basis F

Notes to Financial Statements

Supplemental Exhibits:

Schedule of Cash & Cash Equivalents A-4

Schedule of Due from State - P.L. 1971, C.20 A-5

Schedule of Taxes Receivable & Analysis of Property Tax Levy A-6

Schedule of Tax Title Liens A-7

Schedule of Property Acquired for Taxes A-8

Schedule of Revenue Accounts Receivable A-9

Schedule of 2017 Appropriations Reserves A-10

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TOWNSHIP OF JACKSON COUNTY OF OCEAN

TABLE OF CONTENTS

Schedule of Accounts Payable A-11

	EXHIBIT	PAGE
Schedule of Accounts Payable	A-11	84
Current Fund (continued):
Schedule of Reserve for Encumbrances	A-12	84
Schedule of Prepaid Taxes	A-13	85
Schedule of Tax Overpayments	A-14	85
Schedule of County Taxes Payable	A-15	86
Schedule of Local School District Tax Payable	A-16	86
Schedule of Special District Taxes Payable	A-17	87
Schedule of Due to State of New Jersey – Construction Fees	A-18	87
Schedule of Due to State of New Jersey – Marriage Licenses	A-19	87
Schedule of Reserve for Revaluation Program	A-20	88
Schedule of Due to Municipal Open Space Trust Fund	A-21	88
Schedule of Reserve for Garden State Trust Fund	A-22	88
Schedule of Reserve for State Board of Taxation Appeals	A-23	89
Schedule of Reserve for Master Plan	A-24	89
Schedule of Reserve Other	A-25	89
Schedule of Reserve for COAH State Plan	A-26	90
Schedule of Reserve for FEMA Reimbursement	A-27	90
Schedule of Reserve for Police Cars	A-28	90
Schedule of Interfunds – Other Funds	A-29	91
Schedule of Federal & State Grant Fund Due from Current	A-30	92
Schedule of State & Federal Grants Receivable	A-31	93
Schedule of State & Federal Grants Appropriated	A-32	94
Schedule of State & Federal Grants Unappropriated	A-33	96
Schedule of Reserve for Encumbrances	A-34	96
Trust Fund:
Schedule of Cash - Treasurer	B-4	99
Schedule of Due to State of New Jersey – Animal Control	B-5	100
Schedule of Reserve for Animal Control Expenditures	B-6	100
Schedule of Interfund – Current Fund	B-7	101
Schedule of Due from County of Ocean – Community Development Block Grant	B-8	101
Schedule of Various Reserves	B-9	102
Schedule of Funds Held by Trustee - LOSAP	B-10	103
Schedule of Reserve for Length of Service Award Program	B-11	103
General Capital Fund:
Schedule of Cash & Cash Equivalents	C-2	107
Analysis of Cash & Cash Investments	C-3	108
Schedule of Due From Jackson MUA for Shared Services Agreement	C-4	109
Schedule of Deferred Charges to Future Taxation – Funded	C-5	109
Schedule of Deferred Charges to Future Taxation – Unfunded	C-6	110
Schedule of General Serial Bonds	C-7	111
Schedule of Improvement Authorizations	C-8	112

Schedule of Reserve for Encumbrances A-12

Schedule of Prepaid Taxes A-13

Schedule of Tax Overpayments A-14

Schedule of County Taxes Payable A-15

Schedule of Local School District Tax Payable A-16

Schedule of Special District Taxes Payable A-17

Schedule of Due to State of New Jersey – Construction Fees A-18

Schedule of Due to State of New Jersey – Marriage Licenses A-19

Schedule of Reserve for Revaluation Program A-20

Schedule of Due to Municipal Open Space Trust Fund A-21

Schedule of Reserve for Garden State Trust Fund A-22

Schedule of Reserve for State Board of Taxation Appeals A-23

Schedule of Reserve for Master Plan A-24

Schedule of Reserve Other A-25

Schedule of Reserve for COAH State Plan A-26

Schedule of Reserve for FEMA Reimbursement A-27

Schedule of Reserve for Police Cars A-28

Schedule of Interfunds – Other Funds A-29

Schedule of Federal & State Grant Fund Due from Current A-30

Schedule of State & Federal Grants Receivable A-31

Schedule of State & Federal Grants Appropriated A-32

Schedule of State & Federal Grants Unappropriated A-33

Schedule of Reserve for Encumbrances A-34

Schedule of Cash - Treasurer B-4

Schedule of Due to State of New Jersey – Animal Control B-5

Schedule of Reserve for Animal Control Expenditures B-6

Schedule of Interfund – Current Fund B-7

Schedule of Due from County of Ocean – Community Development Block Grant B-8

Schedule of Various Reserves B-9

Schedule of Funds Held by Trustee - LOSAP B-10

Schedule of Reserve for Length of Service Award Program B-11

Schedule of Cash & Cash Equivalents C-2

Analysis of Cash & Cash Investments C-3

Schedule of Due From Jackson MUA for Shared Services Agreement C-4

Schedule of Deferred Charges to Future Taxation – Funded C-5

Schedule of Deferred Charges to Future Taxation – Unfunded C-6

Schedule of General Serial Bonds C-7

Schedule of Improvement Authorizations C-8

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TOWNSHIP OF JACKSON COUNTY OF OCEAN

TABLE OF CONTENTS

Schedule of Reserve for Encumbrances C-9

Schedule of Capital Improvement Fund C-10

Schedule of Reserve for Debt Service - Open Space Bonds C-11

Schedule of Reserve for Debt Service - Other C-12

Schedule of Reserve for Fire Damage - Annex Building C-13

Schedule of NJEIT Loan Payable C-14

Schedule of Bond Anticipation Notes C-15

Schedule of Bonds and Notes Authorized But Not Issued C-16

Schedule of Cash D-1

Schedule of Reserve for Public Assistance D-2

Schedule of Investment in Fixed Assets E-1

PART II

Schedule of Financial Statement Findings

Summary Schedule of Prior Year Audit Findings

PART III

Officials in Office and Surety Bonds

General Comments

Other Comments

Recommendations

Acknowledgement

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TOWNSHIP OF JACKSON COUNTY OF OCEAN

PART I

INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

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INDEPENDENT AUDITOR'S REPORT

Honorable Mayor and Members of the Township Council Township of Jackson Jackson, New Jersey

Report on the Financial Statements

We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory basis of the various funds and account group of the Township of Jackson as of December 31, 2018 and 2017, and the related statements of operations and changes in the fund balance - regulatory basis for the years then ended, the related statements of revenues - regulatory basis, and statements of expenditures - regulatory basis for the year ended December 31, 2018 and the related notes to the financial statements, which collectively comprise the Township's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

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

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

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Opinions

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

As discussed in Note 1 to the financial statements, the Township prepares its financial statements using accounting practices that demonstrate compliance with regulatory basis of accounting and budget laws of the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the State of New Jersey.

The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Township, as of December 31, 2018 and 2017, or the results of its operations and changes in fund balance for the years then ended.

Unmodified Opinion on Regulatory Basis of Accounting

In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, reserves and fund balance - regulatory basis of the various funds of the Township, as of December 31, 2018 and 2017, and the results of its operations and changes in fund balance - regulatory basis of such funds for the years then ended, and the statements of revenues - regulatory basis, statements of expenditures - regulatory basis of the various funds, and general fixed assets group of accounts – regulatory basis, for the year ended December 31, 2018 in conformity with accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note 1.

Emphasis of Matter

Change in Accounting Principle

As discussed in Note 1 to the financial statements, during the year ended December 31, 2018 the Township adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions - an Amendment of GASB Statement No. 45, 57, & 74. Our opinion is not modified with respect to this matter.

Other Matters

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements referred to in the first paragraph as a whole. The supplemental schedules presented for the various funds and letter of comments and recommendations section are presented for purposes of additional analysis as required by the Division of Local Government Services, Department of Community Affairs, State of New Jersey and is not a required part of the basic financial statements.

The supplemental schedules presented for the various funds are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and

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certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account group taken as a whole.

The letter of comments and recommendations section has not been subject to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2019 on our consideration of the Township's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Township's internal control over financial reporting and compliance.

Respectfully submitted,

HOLMAN FRENIA ALLISON, P.C.

Jerry W. Conaty

Certified Public Accountant

Registered Municipal Accountant

RMA No. 581

Toms River, New Jersey

July 31, 2019

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INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Mayor and Members of the Township Council Township of Jackson County of Ocean Jackson, New Jersey

We have audited, in accordance with the auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, the financial statements - regulatory basis of the Township of Jackson, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the Township's basic financial statements, and have issued our report thereon dated July 31, 2019. Our report indicated that the Township's financial statements were not prepared in accordance with accounting principles generally accepted in the United States of America but rather prepared in accordance with the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

Internal Control Over Financial Reporting

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain

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deficiencies in internal control, described in the accompanying schedule of financial statement findings that we consider to be a significant deficiency as Finding No. 2018-001.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Township's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey and which are described in the accompanying schedule of financial statement findings as Finding No. 2018-001.

We also noted certain other matters that are not required to be reported under Governmental Auditing Standards, that we reported to management in the accompanying letter of comments and recommendations section of this report as required by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

Township of Jackson's Response to Findings

The Township of Jackson’s response to the findings identified in our audit is described in the accompanying schedule of financial statement findings. The Township’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Township's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey in considering the Township's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Respectfully Submitted,

HOLMAN FRENIA ALLISON, P.C.

Jerry W. Conaty

Jerry W. Conaty Certified Public Accountant Registered Municipal Accountant RMA No. 581

Toms River, New Jersey July 31, 2019

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BASIC FINANCIAL STATEMENTS

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

	REFERENCE	2018	2017
ASSETS
Regular Fund:
Cash -Treasurer	A-4	$ 18,907,922.56	$ 19,832,132.40
Cash - Change Fund	A	1,465.00	1,135.00
Due from State of New Jersey:
Senior Citizen & Veteran Deductions	A-5	9,517.69	15,297.14
Total Regular Fund		18,918,905.25	19,848,564.54
Receivables & Other Assets With Full Reserves:
Delinquent Property Taxes Receivable	A-6	1,814,819.70	1,732,507.60
Tax Title Liens Receivable	A-7	3,357,833.01	2,995,943.38
Property Acquired for Taxes at Assessed Valuation	A-8	6,306,200.00	6,306,200.00
Revenue Accounts Receivable	A-9	32,504.07	37,857.26
Interfunds Receivable	A-29	1,189.21	17,599.48
Total Receivables & Other Assets With Full Reserves		11,512,545.99	11,090,107.72
Total Regular Fund, Receivables & Other Assets With Full Reserves		30,431,451.24	30,938,672.26
State & Federal Grants:
Grants Receivable	A-31	255,199.51	147,049.02
Due from Current Fund	A-30	1,084,108.11	471,796.36
Total State & Federal Grants		1,339,307.62	618,845.38
Total Assets		$ 31,770,758.86	$ 31,557,517.64

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

REFERENCE 2018 2017

LIABILITIES RESERVES & FUND BALANCE

Regular Fund:
Liabilities:
Appropriation Reserves	A-3,A-10	$ 2,187,619.08	$ 2,062,135.87
Reserves for Encumbrances	A-12	1,383,951.00	1,243,167.54
Accounts Payable	A-11	462,709.36	419,909.75
Prepaid Taxes	A-13	811,065.83	3,767,751.28
Tax Overpayments	A-14	31,100.33	502,605.91
County Taxes Payable	A-15	69,159.46	148,672.62
Due State of New Jersey - Construction Fees	A-18	18,327.00	12,980.00
Due State of New Jersey - Marriage License Fees	A-19	1,700.00	1,450.00
Reserve for Revaluation Program	A-20	5,743.40	5,743.40
Reserve for Garden State Trust Fund	A-22	0.95	0.95
Reserve for State Board of Taxation Appeals	A-23	313,782.95	313,782.95
Reserve for Master Plan	A-24	23,106.23	23,106.23
Reserve Other	A-25	2,117.88	2,742.88
Reserve for COAH State Plan	A-26	915,250.00	915,250.00
Reserve for FEMA Reimbursements	A-27	56,727.20	66,933.15
Reserve for Police Cars	A-28	98,183.77	112,113.95
Reserve for Skate Park	A	2,118.00	2,118.00
Interfund Payable	A-29	1,084,530.02	472,121.36
Total Liabilities		7,467,192.46	10,072,585.84
Reserve for Receivables & Other Assets	A	11,512,545.99	11,090,107.72
Fund Balance	A-1	11,451,712.79	9,775,978.70
Total Regular Funds		30,431,451.24	30,938,672.26
Federal & State Grants:
Appropriated Reserves	A-32	568,988.66	546,184.90
Unappropriated Reserves	A-33	17,481.58	60,816.52
Reserves for Encumbrances	A-34	752,837.38	11,843.96
Total State & Federal Grants		1,339,307.62	618,845.38
Total Liabilities, Reserves & Fund Balance		$ 31,770,758.86	$ 31,557,517.64

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

		2018	2017
Revenue & Other Income Realized:
Fund Balance Utilized	A-2	$ 3,703,000.00	$ 2,785,000.00
Miscellaneous Revenue Anticipated	A-2	9,119,370.71	7,108,161.00
Receipts From Delinquent Taxes	A-2	1,571,974.85	1,339,819.32
Receipts From Current Taxes	A-2	158,928,545.16	154,686,183.07
Nonbudget Revenue	A-2	916,981.95	1,679,640.77
Other Credits to Income:
Unexpended Balance of Appropriation Reserves	A-10	1,945,394.66	2,000,360.70
Cancelled Accounts Payable	A-11	158,376.70	8,193.13
Prior Year Senior Citizen Deductions Allowed	A-5	-	250.00
Prior Year Interfunds Liquidated	A-1	16,410.27	-
Cancellation of Grant Appropriation Reserves	A-29	36,531.30	33,331.38
Total Revenue & Other Income Realized		176,396,585.60	169,640,939.37
Expenditures:
Operations Within "CAPS":
Salaries and Wages	A-3	19,765,045.54	18,694,113.11
Other Expenses	A-3	12,085,159.35	12,044,354.42
Deferred Charges & Statutory Expenditures Within "CAPS"	A-3	4,988,203.08	4,677,830.64
Operations Excluded from "CAPS":
Salaries and Wages	A-3	370,682.50	368,212.50
Other Expenses	A-3	1,156,937.97	349,430.59
Capital Improvements - Excluded from "CAPS":	A-3	450,000.00	110,000.00
Municipal Debt Service Excluded From "CAPS"	A-3	3,685,207.83	3,763,135.55
Deferred Charges - Municipal - Excluded From "CAPS"	A-3	-	326.70
Local District School Taxes	A-16	89,966,447.00	87,640,356.00
Fire District Taxes	A-17	6,404,942.00	6,160,152.00
County Taxes	A-15	30,689,790.76	29,046,948.97
Amount Due County for Added & Omitted Taxes	A-15	69,159.47	148,672.63
Municipal Open Space Taxes	A-21	1,355,404.55	1,352,748.88
Prior Year Interfunds Advanced	A-1	-	1,999.88
Prior Year Senior Citizen Deductions Disallowed	A-5	4,669.18	10,032.19
Cancellation of Grant Receivable	A-29	26,202.28	26,050.32
Total Expenditures		171,017,851.51	164,394,364.38
Statutory Excess to Fund Balance		5,378,734.09	5,246,574.99
Fund Balance January 1	A	9,775,978.70	7,314,403.71
Total		15,154,712.79	12,560,978.70
Decreased by: Utilized as Revenue	A-2	3,703,000.00	2,785,000.00
Balance December 31	A	$ 11,451,712.79	$ 9,775,978.70

The Accompanying Notes to the Financial Statements are an integral part of this Statement.

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF REVENUES FOR THE YEAR ENDED DECEMBER 31, 2018

	ANTICIPATED BUDGET	ADDED PER N.J.S.40A:4-87	REALIZED	EXCESS OR (DEFICIT)
Fund Balance Anticipated	$ 3,703,000.00	$ -	$ 3,703,000.00	$ -
Miscellaneous Revenue:
Licenses:
Alcoholic Beverages	37,050.00	-	39,050.00	2,000.00
Other	30,000.00	-	31,459.00	1,459.00
Fees & Permits	160,000.00	-	247,710.06	87,710.06
Fines & Costs:
Municipal Court	470,000.00	-	495,854.04	25,854.04
Interest & Cost on Taxes	380,000.00	-	380,530.96	530.96
Interest on Investments & Deposits	130,000.00	-	354,193.58	224,193.58
Housing & Commercial CCO's	150,000.00	-	99,200.00	(50,800.00)
Energy Receipts Taxes	3,352,149.00	-	3,352,149.00	-
Garden State Trust	56,290.00	-	56,290.00	-
Uniform Construction Code Fees	1,200,000.00	-	1,972,934.10	772,934.10
Shared Service Agreement - BOE	102,000.00	69,360.00	171,360.00	-
Clean Communities Program	-	106,770.16	106,770.16	-
Recycling Tonnage Grant	48,115.29	-	48,115.29	-
Municipal Alliance on Alcoholism & Drug Abuse	-	33,124.00	33,124.00	-
Safe & Secure Communities Program	-	28,805.00	28,805.00	-
Body Armor Replacement Grant-State	7,811.40	-	7,811.40	-
Cops in Shops/College Fall Initiative	4,400.00	-	4,400.00	-
Alcohol Education and Rehabilitation Fund	4,889.83	-	4,889.83	-
Drunk Driving Enforcement Fund	13,292.69	-	13,292.69	-
Drive Sober or Get Pulled Over - Statewide Crackdown	-	5,500.00	5,500.00	-
Distracted Driving Crackdown - Text	-	6,600.00	6,600.00	-
Handicapped Recreation Opportunities Grant	15,000.00	-	15,000.00	-
NJDOT Municipal Aid Program- Woodlane/New Central	-	775,000.00	775,000.00	-
OC Office of Senior Services Information Assistance	17,710.00	7,000.00	24,710.00	-
Bulletproof Vest Program	-	7,222.60	7,222.60	-
Reserve for Debt Service - General Capital Fund	550,000.00	-	550,000.00	-
Reserve for Recycling - Trust Other Fund	50,000.00	-	50,000.00	-
Cablevision Franchise Fee	237,399.00	-	237,399.00	-
Total	7,016,107.21	1,039,381.76	9,119,370.71	1,063,881.74
Receipts from Delinquent Taxes	1,100,000.00	-	1,571,974.85	471,974.85
Amount to be Raised by Support of Municipal Budget:
Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes	32,354,549.88	-	33,154,598.96	800,049.08
Budget Totals	44,173,657.09	1,039,381.76	47,548,944.52	2,335,905.67
Nonbudget Revenues	-	-	916,981.95	916,981.95
Total	$ 44,173,657.09	$ 1,039,381.76	$ 48,465,926.47	$ 3,252,887.62

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF REVENUES FOR THE YEAR ENDED DECEMBER 31, 2018

ANALYSIS OF REALIZED REVENUES

Allocation of Current Tax Collections:
Revenue From Collections	$	158,928,545.16
Net Revenue From Collections	158,928,545.16
Allocated to School, County, Municipal Open Space & Special Districts	128,485,743.78
Balance for Support of Municipal Budget Appropriations	30,442,801.38
Increased by Appropriation for Uncollected Taxes	2,711,797.58
Amount for Support of Municipal Budget Appropriations	$	33,154,598.96
Receipts from Delinquent Taxes:
Delinquent Tax Collections	$	1,537,301.67
Tax Title Lien Collections	34,673.18
Total	$	1,571,974.85
Construction Code Official:
Construction Code Official:
Plumbing Fees & Permits	$	253,255.00
Electrical Fees & Permits	671,434.00
Building Inspector Fees & Permits	698,916.00
Fire Inspection Fees & Permits	83,210.00
TCO, CCO & COMM	45,767.00
Building Fines & Penalties	35,800.00
Misc Other	184,552.10
Total Construction Code Official	$	1,972,934.10
Other Fees & Permits:
Public Works	$	49,650.00
Forester	6,120.00
Police Department	30,658.56
Zoning Board	34,390.00
Planning Board	103,181.50
Vital Statistics	23,710.00
Total Other Fees & Permits	$	247,710.06

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TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF REVENUES FOR THE YEAR ENDED DECEMBER 31, 2018

ANALYSIS OF NONBUDGET REVENUE

Miscellaneous Revenue Not Anticipated:
Administration Fees	$ 326.00
Administrative Fee - Senior Citizen's & Veteran's	9,053.67
Auction Proceeds	138,038.85
Bid Fees	550.00
Clerk	10,774.60
Gas & Fuel Reimbursements	44,373.42
Insurance Reimbursement	24,861.29
Library Water	1,250.00
Miscellaneous	2,006.58
Motor Vehicle Inspection Fines	2,777.34
Non Sufficient Funds	200.00
Ocean County Rent of Polling Places	1,400.00
Ocean County Joint Insurance Fund 2017 Dividend	43,375.00
Planning & Zoning	1,028.32
Police Alarm Fines	2,645.00
Rental Registration	103,800.00
Resolution Fees	4,800.00
Shared Services	8,771.98
Subdivision Fees	9,798.80
Surcharge O/S Employment	167,035.00
Tax Collector Fees	121,317.05
Telephone Revenue	37,682.11
Tower Rental	100,355.04
Vacant Property Registration	80,500.00
Vending Machines	261.90
Total Miscellaneous Revenue Not Anticipated	$ 916,981.95

14

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15

The Accompanying Notes to the Financial Statements are an integral part of this Statement.

	APPROPRIATIONS		EXPENDED			CANCELLED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERSERVED	RESERVED	CANCELLED
OPERATIONS - Within "CAPS"
General Government:
Administrative Executive:
Salaries and Wages	$276,084.00	$282,754.52	$282,597.09	$-	$157.43	$-
Other Expenses	65,850.00	65,850.00	53,079.81	11,303.40	1,466.79	-
Township Council:
Salaries and Wages	44,340.00	44,340.00	44,339.88	-	0.12	-
Other Expenses	850.00	850.00	207.76	240.00	402.24	-
Mayor:
Salaries and Wages	29,500.00	29,500.00	29,499.96	-	0.04	-
Other Expenses	4,600.00	4,600.00	2,334.00	-	2,266.00	-
Human Services:
Salaries and Wages	108,615.73	112,569.01	110,102.24	-	2,466.77	-
Other Expenses	13,151.00	13,151.00	9,150.83	1,591.49	2,408.68	-
Municipal Clerk:
Salaries and Wages	275,908.00	286,995.22	265,422.44	-	21,572.78	-
Other Expenses	30,000.00	30,000.00	22,371.32	1,122.80	6,505.88	-
Election:
Salaries and Wages	3,500.00	3,500.00	3,209.06	-	290.94	-
Other Expenses	6,000.00	6,000.00	6,000.00	-	-	-
Financial Administration:
Salaries and Wages	337,486.00	350,291.37	325,710.61	-	24,580.76	-
Other Expenses	37,403.00	29,403.00	14,032.46	14,536.33	834.21	-
Audit Services:
Other Expenses	45,800.00	45,800.00	-	45,800.00	-	-
Data Processing:
Salaries and Wages	121,220.00	134,464.27	132,963.40	-	1,500.87	-
Other Expenses	30,000.00	35,200.00	29,140.45	447.48	5,612.07	-
Collection of Taxes:
Salaries and Wages	294,903.00	303,264.58	298,546.17	2,139.37	2,579.04	-
Other Expenses	35,945.00	35,945.00	17,266.53	11,071.34	7,607.13	-

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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APPROPRIATIONS EXPENDED CANCELLED

BUDGET BUDGET AFTER MODIFICATION PAID OR CHARGED ENCUMBERSRED RESERVED

Assessment of Taxes:

Salaries and Wages 366,473.00 369,240.75 351,774.85 2,068.16 15,397.74 -

Other Expenses 17,710.00 17,710.00 9,588.85 7,413.48 707.67 -

Purchasing: -

Salaries and Wages 101,643.00 101,643.00 98,122.68 1,294.50 2,225.82 -

Other Expenses 34,811.88 34,811.88 29,422.77 3,315.65 2,073.46 -

Legal Services & Costs:

Other Expenses 495,000.00 470,500.00 385,930.64 37,073.46 47,495.90 -

Engineering Services & Costs:

Salaries and Wages 209,466.00 216,774.78 201,415.72 2,411.39 12,947.67 -

Other Expenses 133,150.00 133,150.00 61,327.95 49,227.86 22,594.19 -

Historical Commission:

Other Expenses 100.00 100.00 - - 100.00 -

Community Alliance-Alcoholism & Drugs:

Salaries and Wages 1,140.00 1,140.00 - - 1,140.00 -

Other Expenses 100.00 100.00 - - 100.00 -

Mayor's Community Advisory Board:

Other Expenses 50.00 50.00 - - 50.00 -

Economic Development Advisory Board:

Other Expenses 1,175.00 1,175.00 - - 1,175.00 -

Land Use Administration:

Planning/Zoning Boards:

Salaries and Wages 225,480.90 229,683.93 225,905.62 1,604.32 2,173.99 -

Other Expenses 63,900.00 69,900.00 54,388.31 2,910.79 12,600.90 -

Maintenance of Tax Maps:

Other Expenses 22,000.00 22,000.00 8,925.50 - 13,074.50 -

Code Enforcement - Other:

Rent Leveling Board:

Salaries and Wages 3,145.00 3,145.00 1,375.00 - 1,770.00 -

Other Expenses 50,000.00 50,000.00 33,132.55 4,270.85 12,596.60 -

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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17

The Accompanying Notes to the Financial Statements are an integral part of this Statement.

	APPROPRIATIONS		EXPENDED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERS	RESERVED	CANCELLED
Code Enforcement - Other:
Salaries and Wages	312,793.00	314,359.78	280,018.69	1,352.52	32,988.57	-
Other Expenses	14,805.00	14,805.00	10,185.68	927.26	3,692.06	-
Commercial Building Standards:
Salaries and Wages	12,000.00	12,000.00	10,000.00	-	2,000.00	-
Other Expenses	1,100.00	1,100.00	677.76	299.22	123.02	-
Unsafe Structures Committee
Other Expenses	20,000.00	20,000.00	-	-	20,000.00	-
Insurance:
General Liability	732,100.00	792,100.00	721,242.25	58,622.43	12,235.32	-
Workers Compensation	524,000.00	524,000.00	523,883.73	-	116.27	-
Employee Group Health	4,482,000.00	4,471,300.00	4,119,915.00	1,476.20	349,908.80	-
Health Benefit Waiver	42,240.00	42,240.00	34,320.00	-	7,920.00	-
Unemployment Trust Fund	10,000.00	10,000.00	-	-	10,000.00	-
Public Safety Functions:
Police Department:
Salaries and Wages	11,594,534.61	11,499,588.45	11,083,681.64	-	415,906.81	-
Other Expenses	658,830.47	758,830.47	562,679.88	155,212.03	40,938.56	-
Police Dispatch/911:
Salaries and Wages	546,337.50	554,190.59	484,543.87	-	69,646.72	-
Emergency Management:
Salaries and Wages	12,346.00	12,346.00	6,565.94	-	5,780.06	-
Other Expenses	21,000.00	21,000.00	2,222.96	14,999.41	3,777.63	-
Municipal Prosecutor:
Other Expenses	50,000.00	50,000.00	36,666.63	3,333.36	10,000.01	-
Juvenile Conference Committee:
Salaries and Wages	1,300.00	1,300.00	-	-	1,300.00	-
Other Expenses	25.00	25.00	-	-	25.00	-
Public Works Functions:
Streets & Roads Maintenance:
Salaries and Wages	1,532,751.80	1,464,284.54	1,410,867.82	3,832.58	49,584.14	-
Other Expenses	251,550.00	251,550.00	154,143.19	60,524.02	36,882.79	-

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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APPROPRIATIONS EXPENDED CANCELLED

BUDGET BUDGET AFTER MODIFICATION PAID OR CHARGED ENCUMBERSRED RESERVED

Snow Removal:

Other Expenses 459,000.00 459,000.00 458,462.25 537.75 - -

Shade Tree Commission:

Salaries and Wages 1,250.00 1,250.00 1,000.00 - 250.00 -

Other Expenses 9,050.00 9,050.00 4,276.50 - 4,773.50 -

Solid Waste Collection:

Salaries and Wages 52,067.00 144,527.41 139,158.83 - 5,368.58 -

Other Expenses 570,300.00 570,300.00 521,634.22 47,396.00 1,269.78 -

Buildings & Grounds:

Salaries and Wages 890,594.00 894,261.89 681,406.17 - 212,855.72 -

Other Expenses 271,773.00 271,773.00 174,806.25 83,535.11 13,431.64 -

Vehicle Maintenance:

Salaries and Wages 408,202.00 414,446.53 371,086.57 - 43,359.96 -

Other Expenses 259,650.00 259,650.00 163,544.85 57,088.08 39,017.07 -

Community Services Act:

Other Expenses 175,000.00 175,000.00 - 175,000.00 - -

Health & Human Services Functions:

Public Health Services:

Salaries and Wages 7,500.00 7,500.00 7,499.90 - 0.10 -

Other Expenses 1,200.00 1,200.00 344.00 - 856.00 -

Environmental Health Services-Environmental Commission:

Salaries and Wages 1,300.00 1,300.00 1,050.00 - 250.00 -

Other Expenses 425.00 425.00 33.00 - 392.00 -

Animal Control Services:

Salaries and Wages 142,469.00 146,173.24 135,680.19 - 10,493.05 -

Other Expenses 42,350.00 42,350.00 33,340.78 4,153.89 4,855.33 -

Going Green Committee:

Other Expenses 100.00 100.00 - - 100.00 -

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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The Accompanying Notes to the Financial Statements are an integral part of this Statement.

	APPROPRIATIONS		EXPENDED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERS	RESERVED	CANCELLED
Parks & Recreation Functions:
Recreation Services & Programs:
Salaries and Wages	129,214.00	130,375.82	128,224.97	903.13	1,247.72	-
Other Expenses	11,800.00	11,800.00	6,953.45	4,724.48	122.07	-
Office for the Golden Age:
Salaries and Wages	307,697.00	313,423.63	244,664.70	1,220.00	67,538.93	-
Other Expenses	24,975.00	24,975.00	21,292.14	1,898.06	1,784.80	-
Handicapped Committee:
Salaries and Wages	29,745.00	29,745.00	10,370.84	-	19,374.16	-
Other Expenses	7,500.00	7,500.00	1,898.24	204.53	5,397.23	-
Park Maintenance:
Other Expenses	22,500.00	22,500.00	19,186.10	1,800.00	1,513.90	-
Municipal Court Functions:
Municipal Court:
Salaries and Wages	368,403.00	370,474.39	305,781.57	-	64,692.82	-
Other Expenses	28,440.00	28,440.00	19,920.10	853.86	7,666.04	-
Public Defender:
Other Expenses	8,000.00	8,000.00	8,000.00	-	-	-
Other Common Operating Functions:
Salary & Wage Adjustment:
Salaries and Wages	166,704.00	25,240.76	-	-	25,240.76	-
Postage & Photocopy:
Other Expenses	70,700.00	70,700.00	54,963.23	1,730.40	14,006.37	-
Accumulated Leave Compensation-Sick Trust:
Other Expenses	200,000.00	200,000.00	200,000.00	-	-	-
Utility Expenses & Bulk Purchases:
Electricity	494,000.00	480,000.00	279,918.62	178,963.13	21,118.25	-
Street Lighting	335,000.00	335,000.00	319,062.32	15,937.68	-	-
Telecommunication Costs	80,000.00	80,000.00	47,703.43	13,903.33	18,393.24	-
Natural Gas	120,000.00	120,000.00	83,285.25	35,980.18	734.57	-
Fuel & Petroleum Products	565,000.00	551,000.00	302,930.70	155,387.32	92,681.98	-
Water	1,000.00	1,000.00	-	-	1,000.00	-

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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	APPROPRIATIONS		EXPENDED			CANCELLED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERS	RESERVED	CANCELLED
Landfill/Solid Waste:
Landfill/Solid Waste Disposal Costs:
Other Expenses	227,000.00	227,000.00	190,020.37	31,922.38	5,057.25	-
Legler Landfill - Postclosure Monitoring:
Other Expenses	36,000.00	36,000.00	33,778.46	141.54	2,080.00	-
Uniform Construction Code-Appropriations Offset by Dedicated Revenues(NJAC5:23-4.17):
Construction Code Department:
Salaries and Wages	948,933.00	958,951.08	867,234.34	7,937.41	83,779.33	-
Other Expenses	69,150.00	69,150.00	42,909.53	10,172.00	16,068.47	-
Total Operations Including Contingent Within "CAPS"	31,850,204.89	31,850,204.89	28,430,321.36	1,331,811.96	2,088,071.57	-
Detail:
Salaries and Wages	19,865,045.54	19,765,045.54	18,539,820.76	24,763.38	1,200,461.40	-
Other Expenses	11,985,159.35	12,085,159.35	9,890,500.60	1,307,048.58	887,610.17	-
Deferred Charges & Statutory Expenditures
Municipal Within "CAPS":
Statutory Expenditures:
Public Employees' Retirement System	930,110.38	930,110.38	930,110.38	-	-	-
Social Security System (O.A.S.I.)	1,514,319.28	1,514,319.28	1,423,532.19	1,894.40	88,892.69	-
Police & Firemen's Retirement System	2,530,291.00	2,530,291.00	2,530,291.00	-	-	-
Defined Contribution Retirement Program	11,500.00	11,500.00	7,246.35	-	4,253.65	-
Public Employees' Retirement System:
Delayed Appropriation	1,704.00	1,704.00	1,704.00	-	-	-
Police and Firemen's Retirement System:
Delayed Appropriation	278.42	278.42	278.42	-	-	-

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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The Accompanying Notes to the Financial Statements are an integral part of this Statement.

APPROPRIATIONS EXPENDED

BUDGET BUDGET AFTER MODIFICATION PAID OR CHARGED ENCUMBERS RESERVED CANCELLED

Total Deferred Charges & Statutory Expenditures Within "CAPS" 4,988,203.08 4,988,203.08 4,893,162.34 1,894.40 93,146.34 -

Total General Appropriations for Municipal Purposes Within "CAPS" 36,838,407.97 36,838,407.97 33,323,483.70 1,333,706.36 2,181,217.91 -

OPERATIONS - EXCLUDED FROM "CAPS"

Service Contracts:

Sewer & Water Purposes - MUA 3,600.00 3,600.00 3,600.00 - - -

Implementation of 911 Emergency:

Salaries & Wages 182,112.50 182,112.50 182,112.50 - - -

Relocation Assistance:

Other Expenses 2,000.00 2,000.00 - - 2,000.00 -

LOSAP 46,000.00 46,000.00 - 46,000.00 - -

Recycling Tonnage Tax 10,000.00 10,000.00 8,354.19 1,244.64 401.17 -

Shared Service Agreement-BOE/Police SRO 102,000.00 171,360.00 171,360.00 - - -

Supplemental Fire Services Programs:

Fire District Tax Obligations 13,026.00 13,026.00 13,026.00 - - -

Public & Private Programs Offset by Revenues:

OC Office of Senior Services-Information Assistance:

Salaries and Wages 17,210.00 17,210.00 17,210.00 - - -

Other Expenses 500.00 7,500.00 7,500.00 - - -

Safe & Secure Communities Program - 70,210.00 70,210.00 - - -

State of NJ Body Armor Grant 7,811.40 7,811.40 7,811.40 - - -

Drunk Driving Enforcement Fund 13,292.69 13,292.69 13,292.69 - - -

Matching Funds for Grants 15,281.00 7,000.00 - 3,000.00 4,000.00 -

Distracted Driving Crackdown - 6,600.00 6,600.00 - - -

Alcohol Education and Rehabilitation 4,889.83 4,889.83 4,889.83 - - -

COPS in Shops Summer Shore Initiative 4,400.00 4,400.00 4,400.00 - - -

Drive Sober or Get Pulled Over - 112,270.16 112,270.16 - - -

Federal Bureau of Justice Bulletproof Vest Partner - 7,222.60 7,222.60 - - -

NJDOT Municipal Aid Grant - 775,000.00 775,000.00 - - -

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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	APPROPRIATIONS		EXPENDED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERSRED	RESERVED	CANCELLED
Handicapped Recreation Opportunities Grant:					-
State Share	15,000.00	15,000.00	15,000.00	-	-	-
Local Share	3,000.00	3,000.00	3,000.00	-	-	-
Recycling Tonnage Grant	48,115.29	48,115.29	48,115.29	-	-	-
Total Operations Excluded from "CAPS"	488,238.71	1,527,620.47	1,470,974.66	50,244.64	6,401.17	-
Detail:
Salaries and Wages	301,322.50	370,682.50	370,682.50	-	-	-
Other Expenses	186,916.21	1,156,937.97	1,100,292.16	50,244.64	6,401.17	-
Capital Improvements - Excluded from "CAPS":
Capital Improvement Fund	450,000.00	450,000.00	450,000.00	-	-	-
Total Capital Improvement Excluded from "CAPS"	450,000.00	450,000.00	450,000.00	-	-	-
Municipal Debt Service - Excluded from "CAPS":
Payment of Bond Principal	3,190,000.00	3,190,000.00	3,190,000.00	-	-	-
Interest on Bonds	473,825.00	473,825.00	473,825.00	-	-	-
Loan Repayment for Principal and Interest
Jet Vac/Sweeper	21,387.83	21,387.83	21,382.83	-	-	5.00
Total Capital Improvements, Municipal
Debt Service, Deferred Charges &
Judgements Excluded from "CAPS"	3,685,212.83	3,685,212.83	3,685,207.83	-	-	5.00

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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STATEMENT OF EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2018
APPROPRIATIONS			EXPENDED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	ENCUMBERSERVED	RESERVED	CANCELLED
Total General Appropriations Excluded from "CAPS"	4,623,451.54	5,662,833.30	5,606,182.49	50,244.64	6,401.17	5.00
Subtotal General Appropriations	41,461,859.51	42,501,241.27	38,929,666.19	1,383,951.00	2,187,619.08	5.00
Reserve For Uncollected Taxes	2,711,797.58	2,711,797.58	2,711,797.58	-	-	-
Total General Appropriations	$ 44,173,657.09	$ 45,213,038.85	$ 41,641,463.77	$ 1,383,951.00	$ 2,187,619.08	$ 5.00
Budget		$ 44,173,657.09
Added by N.J.S. 40A:4-87		1,039,381.76
Total		$ 45,213,038.85
Reserve for Uncollected Taxes			$ 2,711,797.58
Appropriated Reserves for Federal & State Grants			1,092,521.97
Refunds			(1,156,025.10)
Cash Disbursements			38,993,169.32
Total			$ 41,641,463.77

TOWNSHIP OF JACKSON CURRENT FUND STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON TRUST FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

	REFERENCE	2018	2017
ASSETS
Animal Control Trust Fund:
Cash	B-4	$ 115,961.64	$ 130,250.89
Total Animal Control Trust Fund		115,961.64	130,250.89
Open Space Trust Fund:
Cash	B-4	4,797,099.11	4,172,884.03
Total Open Space Trust Fund		4,797,099.11	4,172,884.03
Trust Other Funds:
Cash	B-4	12,435,342.82	12,360,836.48
Interfund - Current Fund	A	421.91	-
Due from County of Ocean - Community Development Block Grant	B-8	277,890.03	221,374.20
Total Trust Other Funds		12,713,654.76	12,582,210.68
Length of Service Awards Program (LOSAP)
Investments Held by Trustee	B-10	114,399.98	116,553.25
Total Assets		$ 17,741,115.49	$ 17,001,898.85

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TOWNSHIP OF JACKSON TRUST FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

REFERENCE 2018 2017

	REFERENCE	2018	2017
LIABILITIES & RESERVES
Animal Control Trust Fund:
Due to State of New Jersey	B-5	$ 16.80	$ 65.40
Due to Current Fund	A	-	15,061.67
Reserve for Animal Control Expenditures	B-6	115,944.84	115,123.82
Total Animal Control Trust Fund		115,961.64	130,250.89
Open Space Trust Fund:
Reserve for Open Space	B-1	4,797,099.11	4,172,884.03
Total Open Space Trust Fund		4,797,099.11	4,172,884.03
Trust Other Funds:
Various Reserves	B-9	12,712,465.55	12,579,997.87
Interfund - Current Fund	A	1,189.21	2,212.81
Total Trust Other Funds		12,713,654.76	12,582,210.68
Length of Service Awards Program (LOSAP)
Reserve for LOSAP	B-11	114,399.98	116,553.25
Total Liabilities & Reserves		$ 17,741,115.49	$ 17,001,898.85

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TOWNSHIP OF JACKSON OPEN SPACE TRUST FUND STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

	2018	2017
Revenue & Other Income Realized:
Amount to be Raised by Taxation	$ 1,352,343.81	$ 1,345,833.37
Added & Omitted Levy	3,060.74	6,915.51
Miscellaneous Revenue Not Anticipated	31,541.12	19,867.43
Total Revenue & Other Income Realized	1,386,945.67	1,372,616.31
Expenditures:
Development of Lands for Recreation & Conservation	B-3	5,830.59
Debt Service	B-3	756,900.00
Total Expenditures	762,730.59	791,530.75
Statutory Excess to Fund Balance	624,215.08	581,085.56
Fund Balance January 1	B	4,172,884.03
Balance December 31	B	$ 4,797,099.11

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TOWNSHIP OF JACKSON OPEN SPACE TRUST FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

	ANTICIPATED BUDGET	REALIZED	EXCESS OR (DEFICIT)
Amount to be Raised by Taxation	$ 1,352,343.81	$ 1,352,343.81	$ -
Added & Omitted Levy	-	3,060.74	3,060.74
Miscellaneous Revenue Not Anticipated	-	31,541.12	31,541.12
Total	$ 1,352,343.81	$ 1,386,945.67	$ 34,601.86

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	APPROPRIATIONS		EXPENDED
	BUDGET	BUDGET AFTER MODIFICATION	PAID OR CHARGED	RESERVED	CANCELLED
Development of Lands for Recreation and Conservation:
Other Expenses	$ 100,000.00	$ 100,000.00	$ 5,830.59	$ -	$ 94,169.41
Total Development of Lands for Recreation and Conservation	100,000.00	100,000.00	5,830.59	-	94,169.41
Debt Service:
Payment of Bond Principal	650,000.00	650,000.00	650,000.00	-	-
Interest on Bonds	106,900.00	106,900.00	106,900.00	-	-
Total Debt Service	756,900.00	756,900.00	756,900.00	-	-
Reserve for Future Use	495,443.81	495,443.81	-	-	495,443.81
Total	$ 1,352,343.81	$ 1,352,343.81	$ 762,730.59	$ -	$ 589,613.22

TOWNSHIP OF JACKSON OPEN SPACE TRUST FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS	REFERENCE	2018	2017
Cash & Cash Equivalents	C-2	$ 5,550,019.78	$ 2,407,348.64
MUA Shared Services Agreement Receivable	C-4	-	395.00
Deferred Charges to Future Taxation:
Funded	C-5	15,726,336.95	19,581,439.78
Unfunded	C-6	6,481,502.50	4,372,731.50
Total Assets		$ 27,757,859.23	$ 26,361,914.92
LIABILITIES, RESERVES & FUND BALANCE
General Serial Bond	C-7	$ 15,455,000.00	$ 19,295,000.00
NJEIT Loans Payable	C-14	271,336.95	286,439.78
Bond Anticipation Notes	C-15	4,372,000.00	-
Improvement Authorizations:
Funded	C-8	1,432,747.94	1,660,977.58
Unfunded	C-8	3,353,319.76	2,240,052.36
Reserve for Encumbrances	C-9	1,047,949.11	964,677.31
Capital Improvement Fund	C-10	426,385.08	574.08
Reserve for Debt Service - Open Space Bonds	C-11	1,203,770.57	1,753,770.57
Reserve for Debt Service - Other	C-12	78,070.22	43,135.22
Reserve for Fire Damage - Annex Building	C-13	3,217.61	3,226.03
Fund Balance	C-1	114,061.99	114,061.99
Total Liabilities, Reserves & Fund Balance		$ 27,757,859.23	$ 26,361,914.92

There were bonds and notes authorized but not issued on December 31, 2018 of $2,109,502.50 and on December 31, 2017 there was $4,372,731.50.

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND STATEMENT OF FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 and 2017

$ 114,061.99

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TOWNSHIP OF JACKSON PUBLIC ASSISTANCE FUND STATEMENTS OF ASSETS AND RESERVES - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS	REFERENCE	2018	2017
Cash & Cash Equivalents	D-1	$ 27,790.57	$ 27,582.93
Total Assets		$ 27,790.57	$ 27,582.93
RESERVES
Reserve for Public Assistance	D-2	$ 27,790.57	$ 27,582.93
Total Reserves		$ 27,790.57	$ 27,582.93

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TOWNSHIP OF JACKSON GENERAL FIXED ASSETS ACCOUNT GROUP STATEMENTS OF GENERAL FIXED ASSETS AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS	REFERENCE	2018	2017
Land	E-1	$ 56,320,100.00	$ 56,970,100.00
Building & Building Improvements	E-1	49,798,905.00	49,798,905.00
Machinery & Equipment	E-1	14,296,035.00	15,316,240.00
Total		$ 120,415,040.00	$ 122,085,245.00
INVESTMENT IN FIXED ASSETS
Investment in Fixed Assets	E	$ 120,415,040.00	$ 122,085,245.00

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TOWNSHIP OF JACKSON PAYROLL FUND STATEMENTS OF ASSETS AND LIABILITIES - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS	2018	2017
Cash	$ 3,888.11	$ 5,114.73
Total Assets	$ 3,888.11	$ 5,114.73
LIABILITIES
Payroll Deductions Payable	$ 3,888.11	$ 5,114.73
Total Liabilities	$ 3,888.11	$ 5,114.73

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TOWNSHIP OF JACKSON COUNTY OF OCEAN

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

*****

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies

Description of Financial Reporting Entity

This report includes the financial statements of the Township of Jackson (the “Township”), within the County of Ocean, in the State of New Jersey and reflects the activities of the municipality which is under the control of the Mayor and Township Council. The financial statements of the Board of Education, First Aid Organization and Fire Districts are reported separately since their activities are administered by separate boards.

The Township’s governing body is also responsible for appointed the board members of the Jackson Municipal Utilities Authority, but the Township’s accountability for this organization does not extend beyond making the appointments.

Component Units - GASB Statement 14, as amended by GASB Statements 39, 61 and 80, establishes criteria to be used in determining the component units, which should be included in the financial statements of a primary government. The financial statements of the Township are not presented in accordance with GAAP (as discussed below). Therefore, the Township had no component units as defined by GASB Statement No. 14, as amended by GASB Statements 39, 61 and 80.

Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the Township contain all funds and account groups in accordance with the “Requirements of Audit” as promulgated by the State of New Jersey, Department of Community Affairs, Division of Local Government Services. The principles and practices established by the Requirements of Audit are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Generally, the financial statements are presented using the flow of current financial resources measurement focus and modified accrual basis of accounting with minor exceptions as mandated by these “Requirements”. In addition, the prescribed accounting principles previously referred to differ in certain respects from accounting principles generally accepted in the United States of America applicable to local government units. The more significant differences are explained further in this note.

In accordance with the “Requirements”, the Township accounts for its financial transactions through the use of separate funds, which are described as follows:

Current Fund – This fund accounts for revenues and expenditures for governmental operations of a general nature, including federal and state grant funds.

Trust Funds – These funds account for receipts, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created.

General Capital Fund – This fund accounts for receipt and disbursement of funds for the acquisition of general capital facilities, other than those acquired in the Current Fund.

Public Assistance Fund – This fund accounts for receipt and disbursement of funds that provide assistance to certain residents of the Township.

General Fixed Asset Account Group – The Fixed Asset Account Group of accounts is utilized to account for property, land, buildings, and equipment that have been acquired by other funds of the Township.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued)

Payroll Fund – This fund accounts for the receipt and disbursements of funds used to meet obligations to employees and payroll tax liability.

Budgets and Budgetary Accounting - The Township must adopt an annual budget for its Current Fund in accordance with N.J.S.A.40A:4 et seq. N.J.S.A.40A:4-5 requires the governing body to introduce and approve the annual municipal budget no later than February 10th of each year. At introduction, the governing body must fix the time and place for a public hearing on the budget and must advertise the time and place at least ten days prior to the hearing in a newspaper published and circulating in the municipality. The public hearing must not be held less than twenty-eight days after the date the budget was introduced. After the hearing has been held, the governing body may, by majority vote, adopt the budget or may amend the budget in accordance with N.J.S.A.40A:4-9. Amendments to adopted budgets, if any are detailed in the statements of revenues and expenditures.

An extension of the statutory dates for introduction, approval and adoption of the municipal budget may be granted by the Director of Local Government Services, with the permission of the Local Finance Board. Budgets are adopted on the same basis of accounting utilized for the preparation of the Township’s financial statements. Once a budget is approved it may be amended after November 1, by a resolution adopted by the governing body.

Cash, Cash Equivalents and Investments - Cash and Cash equivalents include petty cash, change funds and cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of the date of maturity. Under GAAP, investments are reported at fair value but under regulatory basis of accounting, investments are stated at cost. Therefore, unrealized gains or losses on investments have not been recorded.

New Jersey municipal units are required by N.J.S.A.40A:5-14 to deposit public funds in a bank or trust company having its place of business in the State of New Jersey and organized under the laws of the United States or of the State of New Jersey or in the New Jersey Cash Management Fund. N.J.S.A.40A:5-15.1 provides a list of investments, which may be purchased by New Jersey municipal units. In addition, other State statutes permit investments in obligations issued by local utilities and other state agencies.

N.J.S.A.17:9-41 et seq. establishes the requirements for the security of deposits of governmental units. The statute requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in accordance with the Governmental Unit Deposit Protection Act, which was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking institution in New Jersey. Public depositories include State or federally chartered banks savings banks or associations located in or having a branch office in the State of New Jersey, the deposits of which are federally insured. All public depositories must pledge collateral, having a market value at least equal to five percent of the average daily balance of collected public funds, to secure the deposits of Governmental Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the amount of their deposits to the Governmental Units.

The cash management plan adopted by the Township requires it to deposit funds in public depositories protected from loss under the provisions of the Act.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued)

Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded by all funds affected by such transactions in the period in which the transaction is executed. Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created by charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves.

Inventories and Supplies - The cost of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The costs of inventories are not included on the various statements of assets, liabilities, reserves and fund balance.

General Fixed Assets – Accounting for governmental fixed assets, as required by N.J.A.C.5:30-5.6, differs in certain respects from accounting principles generally accepted in the United States of America. In accordance with the regulations, all local units, including municipalities, must maintain a general fixed assets reporting system that establishes and maintains a physical inventory of nonexpendable, tangible property as defined and limited by the U.S. Office of Management and Budget Circular A-87 (Attachment B, Section 19), except that the useful life of such property is at least five years. The Township has adopted a capitalization threshold of $5,000.00, the maximum amount allowed by the Circular. Generally, assets are valued at historical cost; however, assets acquired prior to December 31, 1985 are valued at actual historical cost or estimated historical cost. In some instances, assets are valued at the assessed valuation of the property at the time of acquisition, which approximates fair value. No depreciation of general fixed assets is recorded. Donated general fixed assets are recorded at their acquisition value as of the date of the transaction. Interest costs relative to the acquisition of general fixed assets are recorded as expenditures when paid. Public domain ("infrastructure") general fixed assets consisting of certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks and drainage systems are not capitalized. Expenditures for construction in progress are recorded in the capital funds until such time as the construction is completed and put into operation. The Township is required to maintain a subsidiary ledger detailing fixed assets records to control additions, retirements, and transfers of fixed assets. In addition, a statement of general fixed assets, reflecting the activity for the year, must be included in the Township's basic financial statements.

The regulations require that general fixed assets, whether constructed or acquired through purchase, grant or gift be included in the aforementioned inventory. In addition, property management standards must be maintained that includes accurate records indicating asset description, source, ownership, acquisition cost and date, the percentage of federal participation (if any), and the location, use, and condition of the asset. Periodically, physical inventories must be taken and reconciled with these records. All fixed assets must be adequately controlled to safeguard against loss, damage, or theft.

Foreclosed property – Foreclosed Property or “Property Acquired for Taxes” is recorded in the Current Fund at the assessed valuation when such property was acquired and is fully reserved. Ordinarily it is the intention of the Township to resell foreclosed property in order to recover all or a portion of the delinquent taxes or assessments and to return the property to a taxpayer basis. For this reason, the value of foreclosed property has not been included in the General Fixed Assets Account Group. If such property is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group.

Deferred Charges – The recognition of certain expenditures is deferred to future periods. These expenditures or deferred charges are generally overexpenditures of legally adopted budget appropriations or emergency appropriations made in accordance with N.J.S.A.40A:4-46 et seq. Deferred charges are subsequently raised as items of appropriation in budgets of succeeding years.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued)

Fund Balance – Fund Balance included in the Current Fund represent the amount available for anticipation as revenue in future year's budgets, with certain restrictions.

Revenues – are recorded when received in cash except for certain amounts, which are due from other governmental units. Revenue from Federal and State grants are realized when anticipated as such in the Township’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement of assets, liabilities, reserves and fund balance of the Township’s Current Fund; accordingly, such amounts are not recorded as revenue until collected. Other amounts that are due the Township, which are susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues when received.

Property Tax Revenues – are collected in quarterly installments due February 1, May 1, August 1 and November 1. The amount of tax levied includes not only the amount required in support of the Township’s annual budget, but also the amounts required in support of the budgets of the County of Ocean and the Township of Jackson School District. Unpaid property taxes are subject to tax sale in accordance with statutes.

County Taxes – The municipality is responsible for levying, collecting and remitting County taxes for the County of Ocean. Operations is charged for the amount due the County for the year, based upon the ratables required to be certified to the County Board of Taxation by January 10th of the current year. In addition, operations is charged for the County share of Added and Omitted Taxes certified to the County Board of Taxation by October 10th of the current year and due to be paid to the County by February 15th of the following year.

School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the Township of Jackson School District. Operations are charged for the full amount required to be raised from taxation to operate the local school district July 1 to June 30.

Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year (July 1 to June 30) which remain unpaid at December 31 of the calendar year levied may be deferred to fund balance to the extent of not more than 50% of the annual levy providing no requisition has been made by the school district for such amount.

Reserve for Uncollected Taxes – The inclusion of the “Reserve for Uncollected Taxes” appropriation in the Township’s annual budget protects the Township from taxes not paid currently. The Reserve, the minimum amount of which is determined on the percentage of collections experienced in the immediate preceding year, with certain exceptions, is required to provide assurance that cash collected in the current year will provide sufficient cash flow to meet expected obligations.

Expenditures – are recorded on the “budgetary” basis of accounting. Generally, expenditures are recorded when an amount is encumbered through the issuance of a numerically controlled purchase order or when a contract is executed as required by Technical Accounting Directive No. 85-1. When an expenditure is paid, the amount encumbered is simultaneously liquidated in its original amount. Encumbrances are offset by an account entitled to reserve for encumbrances. The reserve is classified as a cash liability under New Jersey municipal accounting. At December 31, this reserve represents the portion of appropriation reserves that has been encumbered and is subject to the same statutory provisions as appropriation reserves. Appropriations for interest payments on outstanding general capital bonds and notes are provided on the cash basis.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued)

Appropriation Reserves – Appropriation reserves covering unexpended appropriation balances are automatically created at year-end and recorded as liabilities, except for amounts, which may be cancelled by the governing body. Appropriation reserves and reserve for encumbrances at current year end are available until December 31st of the succeeding year to meet specific claims, commitments or contracts incurred during the preceding year. Any unspent balances at this time are lapsed appropriation reserves and recorded as income.

Long-Term Debt - Long-Term Debt relative to the acquisition of capital assets, is recorded as a liability in the General Capital Fund. Where an improvement is a “local improvement”, i.e. assessable upon completion, long-term debt associated with that portion of the cost of the improvement to be funded by assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the improvement is fully and permanently funded.

Compensated Absences – Expenditures relating to obligations for unused vested accumulated vacation and sick leave are not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39 for the future payment of compensated absences.

Recent Accounting Pronouncements – The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. GASB adopts accounting statements to be used by governmental units when reporting financial position and results of operations in accordance with accounting principles generally accepted in the United States of America (GAAP). The municipalities in the State of New Jersey do not prepare their financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements. The following GASB pronouncement effective for the current year did have a significant impact on the Township’s financial statements.

Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions. This Statement replaces the requirements of Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agency Employers and Agent Multi-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB Plans.

Note 2. Deposits and Investments

The Township is governed by the deposit and investment limitations of New Jersey state law.

Deposits

Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank failure, the Township’s deposits may not be returned. Although the Township does not have a formal policy regarding custodial credit risk, NJSA 17:9-41 et seq. requires that the governmental units shall deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA). GUDPA is a supplemental insurance program set forth by the New Jersey Legislature to protect the deposits of local governmental agencies. The program is administered by the Commissioner of the New Jersey Department of Banking and Insurance. Under the Act, the first $250,000 of governmental deposits in each insured depository is protected by FDIC. Public funds owned by the Township in excess of FDIC insured amounts are protected by GUDPA. However,

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 2. Deposits and Investments (continued)

GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds or funds that may pass to the Township relative to the happening of a future condition. Such funds are shown as Uninsured and Uncollateralized in the schedule below.

As of December 31, 2018, the Township’s bank balance of $41,841,496.02 was insured or collateralized as follows:

Insured under FDIC and GUDPA	$ 24,409,827.91
NJ Cash Management Fund	59.49
Uninsured and Uncollateralized	17,431,608.62
	$ 41,841,496.02

Investments

Fair Value Measurement – The fair value measurements of investments are required to be reported based on the hierarchy established by generally accepted accounting principles. Under GAAP, investments are required to be categorized based on the fair value of inputs of Levels 1, 2 and 3. Under Level 1 inputs, investments are required to be categorized based on quoted market prices in active markets for identical investments. Level 2 inputs are based primarily on using observable measurement criteria, including quoted market prices of similar investments in active and inactive markets and other observable corroborated factors. Level 3 inputs are assets measured at fair value on a recurring basis using significant unobservable measurement criteria based on the best information available.

Under regulatory basis of accounting, investments are measured at cost in the Township’s financial statements. However, had the financial statements been prepared in accordance with GAAP, the Township’s fair value, hierarchy level and maturities of its investments at December 31, 2018 would be as followed:

	Carrying Value	Fair Value as of December 31, 2018			Investment Maturities (in Years)
	Carrying Value	Level 1	Level 3	Total	Less Than 1 Year
Investment type
Mutual Funds	$ 81,844.92	$ 81,844.92	$ -	$ 81,844.92	$ 81,844.92
Fixed Account Investment Contract	32,555.06	-	32,555.06	32,555.06	32,555.06
	$ 114,399.98	$ 81,844.92	$ 32,555.06	$ 114,399.98	$ 114,399.98
Fund
Trust Fund - LOSAP	$ 114,399.98	$ 81,844.92	$ 32,555.06	$ 114,399.98	$ 114,399.98
	$ 114,399.98	$ 81,844.92	$ 32,555.06	$ 114,399.98	$ 114,399.98

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 2. Deposits and Investments (continued)

Custodial credit risk related to Investments - This is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, the Township will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Other than the rules and regulations promulgated by N.J.S.A. 40A:5-15.1, the Township has no investment policy to limit exposure to custodial credit risk.

Interest rate risk - This is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Other than the rules and regulations promulgated by N.J.S.A. 40A:5-15.1, the Township does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit risk - Credit risk is the risk that an issuer to an investment will not fulfill its obligation to the holder of the investment. This is measured by assignment of a rating by a nationally recognized rating organization. U.S. Government securities or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk exposure. As of December 31, 2018, the Township’s investments had the following ratings:

	Standard & Poor's	Moody's
Investment type
Mutual Funds	AAA	Aaa
Fixed Account
Investment Contract	AAA	Aaa

Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. Other than the rules and regulations promulgated by N.J.S.A. 40A; 5-15.1, the Township’s investment policies place no limit in the amount the Township may invest in any one issuer. More than 5% of the Township’s investments are in mutual funds and fixed account investment contract. These investments represent 100% of the Township’s total investments.

Note 3. Property Taxes

The following is a three-year comparison of certain statistical information relative to property taxes and property tax collections for the current and previous two years.

Comparison Schedule of Tax Rates	2018	2017	2016
Tax Rate	$ 2.283	$ 2.227	$ 2.192
Apportionment of Tax Rate:
Municipal	0.478	0.473	0.462
Municipal Open Space	0.020	0.020	0.020
County General	0.454	0.431	0.419
Local School	1.331	1.303	1.291

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 3. Property Taxes (continued)

Year	Amount
Assessed Valuation
2018	$ 6,761,719,027.00
2017	6,729,001,558.00
2016	6,687,122,747.00

Comparison of Tax Levies and Collections

Year	Tax Levy	Cash Collections	Percentage Of Collection
2018	$ 161,192,721.46	$ 158,928,545.16	98.59%
2017	156,848,375.95	154,686,163.07	98.62%
2016	153,289,434.50	151,261,683.46	98.67%
Delinquent Taxes and Tax Title Liens
Year	Tax Title Liens	Delinquent Taxes	Total Delinquent
2018	$ 3,357,833.01	$ 1,814,819.70	$ 5,172,652.71
2017	2,995,943.38	1,732,507.60	4,728,450.98
2016	2,737,303.00	1,777,235.27	4,514,538.27
Number of Tax Title Liens
Year		Number
2018		155
2017		163
2016		155

The last tax sale was held on October 5, 2018.

Note 4. Property Acquired By Tax Title Lien Liquidation

The value of properties acquired by liquidation of tax title liens based on the last assessed valuation of such properties as of December 31, was as follows:

Year Amount

2018 $ 6,306,200.00

2017 6,306,200.00

2016 6,306,200.00

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 5. Fund Balances Appropriated

The following schedule details the amount of fund balances available at the end of the current year and four previous years and the amounts utilized in the subsequent year's budgets:

	Balance December 31,	Utilized in Budget of Succeeding Year	Percentage of Fund Balance Used
Year	$ 11,451,712.79	$ 3,703,000.00	32.34%
Current Fund:	$ 9,775,978.70	$ 3,703,000.00	37.88%
2016	7,314,403.71	2,785,000.00	38.08%

Note 6. Disaggregated Receivable and Payable Balances

There are no significant components of receivable and payable balances reported in the financial statements.

Note 7. Interfund Receivables, Payables and Transfers

The following interfund balances were recorded in the various statements of assets liabilities, reserves and fund balances at December 31, 2018:

Fund	Interfund Receivable	Interfund Payable
Current Fund	$ 1,189.21	$ 1,084,530.02
State and Federal Grant Fund	1,084,108.11	-
Trust Other Fund	421.91	1,189.21
	$ 1,085,719.23	$ 1,085,719.23

The interfund receivables and payables above predominately resulted from payment made by certain funds on behalf of other funds. All interfund balances are expected to be repaid within one year.

A summary of interfund transfers is as follows:

	Transfers	Transfers
Fund	In	Out
Current Fund	$ 2,477,316.86	$ 1,848,497.93
State and Federal Grant Fund	1,409,965.76	2,022,277.51
Animal Control Trust	-	15,061.67
Trust Other Fund	438,532.17	439,977.68
	$ 4,325,814.79	$ 4,325,814.79

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 7. Interfund Receivables, Payables and Transfers (continued)

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted revenue in another.

Note 8. Fixed Assets

The following is a summary of changes in the General Fixed Assets Account Group for the year ended December 31, 2018.

	Balance December 31, 2017	Additions	Deletions	Balance December 31, 2018
Land	$ 56,970,100.00	$ -	$ (650,000.00)	$ 56,320,100.00
Buildings and Improvements	49,798,905.00	-	-	49,798,905.00
Machinery & Equipment	15,316,240.00	1,058,336.00	(2,078,541.00)	14,296,035.00
	$ 122,085,245.00	$ 1,058,336.00	$ (2,728,541.00)	$ 120,415,040.00

Note 9. Pension Obligations

A. Public Employees' Retirement System (PERS)

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

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

The following represents the membership tiers for PERS:

Tier	Definition
1	Members who were enrolled prior to July 1, 2007
2	Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3	Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4	Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5	Members who were eligible to enroll on or after June 28, 2011

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

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

Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by employer (collectively, the Schedules) present amounts that are considered elements of the financial statements of PERS or its participating employers. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of PERS or the participating employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of PERS to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members and contributing employers. State legislation has modified the amount that is contributed by the State. The State's pension contribution is based on an actuarially determined amount, which includes the employer portion of the normal cost and an amortization of the unfunded accrued liability. Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year 2018, the State's pension contribution was less than the actuarial determined amount. The local employers' contribution amounts are based on an actuarially determined rate, which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended December 31, 2018, the Township's contractually required contribution to PERS plan was $996,194.

Components of Net Pension Liability - At December 31, 2018, the Township’s proportionate share of the PERS net pension liability was $19,719,532. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, which was rolled forward to June 30, 2018. The Township’s proportion of the net pension liability was based on the Township’s actual contributions to the plan relative to the total of all participating employers’

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

contributions for the year ended June 30, 2018. The Township’s proportion measured as of June 30, 2018, was 0.1001525200% which was an increase of 0.0004686062% from its proportion measured as of June 30, 2017.

A. Public Employees' Retirement System (PERS) (continued)

Collective Balances at December 31, 2018 and December 31, 2017

	12/31/2018	12/30/2017
Actuarial valuation date (including roll forward)	June 30, 2018	June 30, 2017
Deferred Outflows of Resources	$ 4,531,660	$ 6,485,889
Deferred Inflows of Resources	6,707,145	4,853,096
Net Pension Liability	19,719,532	23,204,822
Township's portion of the Plan's total net pension Liability	0.10015%	0.09968%

Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2018, the Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2018 measurement date is $1,320,061. This expense is not recognized by the Township because of the regulatory basis of accounting as described in Note 1, but as previously mentioned the Township contributed $996,194 to the plan in 2018.

At December 31, 2018, the Township reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

	Deferred Outflows of Resources	Deferred Inflows of Resources
Differences between Expected and Actual Experience	$ 376,054	$ 101,680
Changes of Assumptions	3,249,452	6,305,258
Net Difference between Projected and Actual Earnings on Pension Plan Investments	-	184,970
Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions	906,154	115,237
	$ 4,531,660	$ 6,707,145

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

The Township will amortize the above sources of deferred outflows and inflows related to PERS over the following number of years:

	Deferred Outflow of Resources	Deferred Inflow of Resources
Differences between Expected and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014	-	-
June 30, 2015	5.72	-
June 30, 2016	5.57	-
June 30, 2017	5.48	-
June 30, 2018	5.63	-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014	6.44	-
June 30, 2015	5.72	-
June 30, 2016	5.57	-
June 30, 2017	-	5.48
June 30, 2018	-	5.63
Net Difference between Projected and Actual Earnings on Pension Plan Investments
Year of Pension Plan Deferral:
June 30, 2014	-	5.00
June 30, 2015	-	5.00
June 30, 2016	5.00	-
June 30, 2017	5.00	-
June 30, 2018	5.00	-
Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions Year of Pension Plan Deferral:
June 30, 2014	6.44	6.44
June 30, 2015	5.72	5.72
June 30, 2016	5.57	5.57
June 30, 2017	5.48	5.48
June 30, 2018	5.63	5.63

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

The following is a summary of the deferred outflows of resources and deferred inflows of resources related to PERS that will be recognized in future periods:

Year Ending

Dec 31,	Amount
Year Ending
2019	$ (69,104)
2020	(118,754)
2021	(482,441)
2022	(1,167,530)
2023	(337,656)
	$ (2,175,485)

Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. The actuarial valuations used the following actuarial assumptions:

Inflation	2.25%
Salary Increases:
Through 2026	1.65% - 4.15% Based on Age
Thereafter	2.65% - 5.15% Based on Age
Investment Rate of Return	7.00%
Mortality Rate Table	RP-2000
Period of Actuarial Experience
Study upon which Actuarial Assumptions were Based	July 1, 2011 - June 30, 2014

Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State employees, mortality tables are set back 4 years for males and females. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirements and beneficiaries of former members and a one-year

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

static projection based on the mortality improvement Scale AA. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary's modified MP-2014 projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).

The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements.

Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in PERS's target asset allocation as of June 30, 2018 are summarized in the following table:

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued) A. Public Employees’ Retirement System (PERS) (continued)

Asset Class	Target Allocation	Long-Term Expected Real Rate of Return
Risk Mitigation Strategies	5.00%	5.51%
Cash Equivalents	5.50%	1.00%
U.S. Treasuries	3.00%	1.87%
Investment Grade Credit	10.00%	3.78%
High Yield	2.50%	6.82%
Global Diversified Credit	5.00%	7.10%
Credit Oriented Hedge Funds	1.00%	6.60%
Debt Related Private Equity	2.00%	10.63%
Debt Related Real Estate	1.00%	6.61%
Private Real Asset	2.50%	11.83%
Equity Related Real Estate	6.25%	9.23%
U.S. Equity	30.00%	8.19%
Non-U.S. Developed Markets Equity	11.50%	9.00%
Emerging Markets Equity	6.50%	11.64%
Buyouts/Venture Capital	8.25%	13.08%
	100.00%

Discount Rate - The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. The single blended discount rate was based on long-term expected rate of return on pension plan investments of 7.00%, and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 50% of the actuarially determined contributions and the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2046. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2046 and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the Discount Rate - The following presents the Township’s proportionate share of the net pension liability calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.66%) or 1-percentage-point higher (6.66%) than the current rate:

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

	1% Decrease (4.66%)	Current Discount Rate (5.66%)	1% Increase (6.66%)
Township's Proportionate Share of the Net Pension Liability	$ 24,795,039	$ 19,719,532	$ 15,461,506

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

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

The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after four years of service.

The following represents the membership tiers for PFRS:

Tier

1 Members who were enrolled prior to May 22, 2010.

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

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

Definition

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

Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by employer (collectively, the Schedules) present amounts that are considered elements of the financial statements of PFRS or its participating employers. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of PFRS or the participating employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of PFRS to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members and contributing employers. State legislation has modified the amount that is

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

contributed by the State. The State's contribution amount is based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. For fiscal year 2018, the State contributed an amount less than the actuarially determined amount. The Local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended December 31, 2018, the Township's contractually required contributions to PFRS plan was $2,800,048.

The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.

Net Pension Liability and Pension Expense - At December 31, 2018 the Township’s proportionate share of the PFRS net pension liability was $38,755,556. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The Township’s proportion of the net pension liability was based on the Township’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2018. The Township’s proportion measured as of June 30, 2018, was 0.2864067548%, which was an increase of 0.0005041302% from its proportion measured as of June 30, 2017.

Collective Balances at December 31, 2018 and December 31, 2017

	12/31/2018	12/31/2017
Actuarial valuation date (including roll forward)	June 30, 2018	June 30, 2017
Deferred Outflows of Resources	$ 4,763,241	$ 8,132,992
Deferred Inflows of Resources	10,478,308	7,709,393
Net Pension Liability	38,755,556	44,137,838
Township's portion of the Plan's total net pension Liability	0.28641%	0.28590%

Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2018, the Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2018 measurement date was $3,556,702. This expense is not recognized by the Township because of the regulatory basis of accounting as described in Note 1, but as previously mentioned the Township contributed $2,800,048 to the plan in 2018.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

At December 31, 2018, the Township had deferred outflows of resources and deferred inflows of resources related to PFRS from the following sources:

Deferred Outflows of Resources Deferred Inflows of Resources

Differences between Expected and Actual Experience $ 394,287 $ 160,380

Changes of Assumptions 3,326,643 9,932,380

Net Difference between Projected and Actual Earnings on Pension Plan Investments - 212,028

Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions 1,042,311 173,520

$ 4,763,241 $ 10,478,308

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the following number of years:

	Deferred Outflow of Resources	Deferred Inflow of Resources
Differences between Expected and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014	-	-
June 30, 2015	-	5.53
June 30, 2016	-	5.58
June 30, 2017	5.59	-
June 30, 2018	5.73	-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014	6.17	-
June 30, 2015	5.53	-
June 30, 2016	5.58	-
June 30, 2017	-	5.59
June 30, 2018	-	5.73
Net Difference between Projected and Actual Earnings on Pension Plan Investments
Year of Pension Plan Deferral:
June 30, 2014	-	5.00
June 30, 2015	-	5.00
June 30, 2016	5.00	-
June 30, 2017	5.00	-
June 30, 2018	5.00	-
Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions Year of Pension Plan Deferral:
June 30, 2014	6.17	6.17
June 30, 2015	5.53	5.53
June 30, 2016	5.58	5.58
June 30, 2017	5.59	5.59
June 30, 2018	5.73	5.73

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

The following is a summary of the deferred outflows of resources and deferred inflows of resources related to PERS that will be recognized in future periods:

Year Ending

Dec 31,	Amount
2019	$ 1,363,961
2020	(331,911)
2021	(2,534,592)
2022	(3,580,488)
2023	(632,037)
	$ (5,715,067)

Special Funding Situation – Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State if certain circumstances occurred. The legislation which legally obligates the state is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L., 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a non-employer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan (except for employer specific financed amounts), there is no net pension liability to report in the financial statements of the local participating employers related to this legislation.

Additionally, the State’s proportionate share of the PFRS net pension liability attributable to the Township is $5,264,301 as of December 31, 2018. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The State’s proportion of the net pension liability associated with the Township was based on a projection of the Township’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. The State’s proportion measured as of June 30, 2018 was 0.2864067548%, which was an increase of 0.0005041302% from its proportion measured as of June 30, 2017, which is the same proportion as the Township’s. At December 31, 2018, the Township’s and the State of New Jersey’s proportionate share of the PFRS net pension liability were as follows:

Township's Proportionate Share of Net Pension Liability $ 38,755,556

State of New Jersey's Proportionate Share of Net Pension Liability Associated with the Township 5,264,301

5,264,301 $ 44,019,857

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

At December 31, 2018, the State’s proportionate share of the PFRS expense, associated with the Township, calculated by the plan as of the June 30, 2018 measurement date was $623,548.

Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. The actuarial valuations used the following actuarial assumptions:

Inflation	2.25%
Salary Increases:
Through 2026	2.10% - 8.98% Based on Age
Thereafter	3.10% - 9.98% Based on Age
Investment Rate of Return	7.00%
Mortality Rate Table	RP-2000
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based	July 1, 2010 - June 30, 2013

Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State employees, mortality tables are set back 4 years for males and females. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary's modified MP-2014 projection scale. Post-retirement mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirements and beneficiaries of former members and a one-year static projection based on the mortality improvement Scale AA. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary's modified MP-2014 projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (setback 3 years for males and set forward 1 year for females).

The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, 2013.

Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in PFRS's target asset allocation as of June 30, 2018 are summarized in the following table:

Asset Class	Target Allocation	Long-Term Expected Real Rate of Return
Risk Mitigation Strategies	5.00%	5.51%
Cash Equivalents	5.50%	1.00%
U.S. Treasuries	3.00%	1.87%
Investment Grade Credit	10.00%	3.78%
High Yield	2.50%	6.82%
Global Diversified Credit	5.00%	7.10%
Credit Oriented Hedge Funds	1.00%	6.60%
Debt Related Private Equity	2.00%	10.63%
Debt Related Real Estate	1.00%	6.61%
Private Real Asset	2.50%	11.83%
Equity Related Real Estate	6.25%	9.23%
U.S. Equity	30.00%	8.19%
Non-U.S. Developed Markets Equity	11.50%	9.00%
Emerging Markets Equity	6.50%	11.64%
Buyouts/Venture Capital	8.25%	13.08%
	100.00%

Discount Rate - The discount rate used to measure the total pension liability was 6.51% as of June 30, 2018. The single blended discount rate was based on long-term expected rate of return on pension plan investments of 7.00%, and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 40% of the actuarially determined contributions and the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2057. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2057 and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 9. Pension Obligations (continued)

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

Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the Discount Rate - The following presents the Township’s proportionate share of the net pension liability calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.51%) or 1-percentage-point higher (7.51%) than the current rate:

	1% Decrease (5.51%)	Current Discount Rate (6.51%)	1% Increase (7.51%)
Township's Proportionate Share of the Net Pension Liability	$ 51,869,502	$ 38,755,556	$ 27,863,292
State of New Jersey's Proportionate Share of Net Pension Liability associated with the Township	7,045,614	5,264,301	3,784,767
	$ 58,915,116	$ 44,019,857	$ 31,648,059

Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued by the Township.

Note 10. Postemployment Benefits Other Than Pensions

General Information about the OPEB Plan

The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple-employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It covers employees of local government employers that have adopted a resolution to participate in the Plan. For additional information about the Plan, please refer to the State of New Jersey (the State), Division of Pensions and Benefits' (the Division) Comprehensive Annual Financial Report (CAFR), which can be found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.

The Plan provides medical and prescription drug to retirees and their covered dependents of the participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local government employers electing to provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for employer paid health benefits coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement as established by the employer; or

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Postemployment Benefits Other Than Pensions (continued):

retired and reached the age of 65 with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of

retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of service with the employer. Further, the law provides that the employer paid obligations for retiree coverage may be determined by means of a collective negotiations agreement.

In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides medical and prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L.1989.

Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost of their health care coverage in retirement provided they retire with 25 or more years of pension service credit. The percentage of the premium for which the retiree will be responsible will be determined based on the retiree's annual retirement benefit and level of coverage.

Basis of Presentation

The schedule of employer and nonemployer allocations and the schedule of OPEB amounts by employer and nonemployer (collectively, the Schedules) present amounts that are considered elements of the financial statements of its participating employers or the State as a nonemployer contributing entity. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of the participating employers or the State. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of the Plan to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Allocation Methodology

GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred inflows of resources, and collective OPEB expense. The special funding situation’s and nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are based on separately calculated total OPEB liabilities. For the special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year ended June 30, 2018 were $6,338,578,586 and $9,642,524,641, respectively. The nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are further allocated to employers based on the ratio of the plan members of an individual employer to the total members of the Plan’s nonspecial funding situation during the measurement period July 1, 2017 through June 30, 2018. Employer and nonemployer allocation percentages have been rounded for presentation purposes; therefore, amounts presented in the schedule of OPEB amounts by employer and nonemployer may result in immaterial differences.

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Postemployment Benefits Other Than Pensions (continued):

Special Funding Situation

Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for the category of coverage elected by the qualified retiree under the State managed care plan or a health maintenance organization participating in the program providing the lowest premium or periodic charge. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L.1989.

Therefore, these employers are considered to be in a special funding situation as defined by GASB Statement No. 75 and the State is treated as a nonemployer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan, there is no net OPEB liability, deferred outflows of resources or deferred inflows of resources to report in the financial statements of the local participating employers related to this legislation. However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities' total proportionate share of the collective net OPEB liability that is associated with the local participating employer.

The participating employer allocations included in the supplemental schedule of employer special funding allocations and the supplemental schedule of special funding amounts by employer for each employer are provided as each employer is required to record in their financial statements, as an expense and corresponding revenue, their proportionate share of the OPEB expense allocated to the State of New Jersey under the special funding situation and include their proportionate share of the collective net OPEB liability in their respective notes to their financial statements. For this purpose, the proportionate share was developed based on eligible plan members subject to the special funding situation. This data takes into account active members from both participating and non-participating employer locations and retired members currently receiving OPEB benefits.

Additionally, the State’s proportionate share of the OPEB liability attributable to the Township is $29,520,981.00 as of December 31, 2018. The OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the OPEB liability was determined using update procedures to roll forward the total OPEB liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The State’s proportion of the OPEB liability associated with the Township was based on a projection of the Township’s long-term share of contributions to the OPEB plan relative to the projected contributions of all participating members, actuarially determined. The State’s proportion measured as of June 30, 2018 was 0.475084%, which was an increase of 0.011639% from its proportion measured as of June 30, 2017, which is the same proportion as the Township’s. At December 31, 2018, the Township’s and the State of New Jersey’s proportionate share of the OPEB liability were as follows:

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Postemployment Benefits Other Than Pensions (continued):

State of New Jersey's

Proportionate Share of OPEB Liability Associated with the Township 29,520,981.00

At December 31, 2018, the State’s proportionate share of the OPEB expense, associated with the Township, calculated by the plan as of the June 30, 2018 measurement date was $893,635.00.

Note 11. Municipal Debt

The following schedule represents the Township’s summary of debt, as filed in the Township’s Annual Debt Statement required by the Local Bond Law of New Jersey for the current and two previous years:

	2018	2017	2016
Issued:
General:
Bonds, Notes and Loans	$ 20,098,336.95	$ 19,581,439.78	$ 28,936,326.00
Total Debt Issued	20,098,336.95	19,581,439.78	28,936,326.00
Authorized but not issued:
General:
Bonds, Notes and Loans	2,109,502.50	4,372,731.50	3,357,232.50
Total Authorized But Not Issued	2,109,502.50	4,372,731.50	3,357,232.50
Total Gross Debt	$ 22,207,839.45	$ 23,954,171.28	$ 32,293,558.50
Deductions:
General:
Funds Temporarily Held
to pay Bonds & Notes	1,281,840.79	1,796,905.79	7,757,905.79
Open Space Trust (40A:2-44h)	2,810,000.00	3,460,000.00	4,105,000.00
Total Deductions	4,091,840.79	5,256,905.79	11,862,905.79
Total Net Debt	$ 18,115,998.66	$ 18,697,265.49	$ 20,430,652.71

Summary of Statutory Debt Condition - Annual Debt Statement

The following schedule is a summary of the previous schedule and is prepared in accordance with the required method of setting up the Annual Debt Statement:

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued)

	Gross Debt	Deductions	Net Debt
Local School Debt	$ 61,640,973.00	$ 61,640,973.00	$-
General Debt	22,207,839.45	4,091,840.79	18,115,998.66
	$ 83,848,812.45	$ 65,732,813.79	$ 18,115,998.66

Net Debt $18,115,998.66 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as amended, $7,336,462,648.33, equals 0.247% New Jersey statute 40A:2-6, as amended, limits the debt of a Municipality to 3.5% of the last three preceding year's average equalized valuations of real estate, including improvements and the assessed valuation of Class II Railroad Property. The remaining borrowing power in dollars at December 31, 2018 is calculated as follows:

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

3 1/2% of Equalized Valuation Basis (Municipal)	$ 256,776,192.69
Net Debt	18,115,998.66
Remaining Borrowing Power	$ 238,660,194.03

General Debt

A. Serial Bonds Payable

On July 23, 2014, the Township issued $5,845,000 of General Obligation Bonds. The General Obligation Bonds were issued at interest rates varying from 2.00% to 3.00% and mature in 2025.

On February 2, 2016, the Township issued $7,100,000 of General Bonds. The General Refunding Bonds were issued at interest rates varying from 2.00% to 4.00% and mature in 2028.

During 2016, the Township issued $5,858,000 of General Bonds. The General Obligation bonds were issued at interest rates varying from 2.00% to 4.00% and mature in 2023.

Principal and interest due on the outstanding bonds is as follows:

Year	Principal	Interest	Total
2019	$ 3,485,000.00	$ 446,125.00	$ 3,931,125.00
2020	$ 3,520,000.00	$ 341,575.00	$ 3,861,575.00
2021	$ 1,875,000.00	$ 217,275.00	$ 2,092,275.00
2022	$ 1,890,000.00	$ 156,475.00	$ 2,046,475.00
2023	$ 1,980,000.00	$ 115,950.00	$ 2,095,950.00
2024-2028	$ 2,705,000.00	$ 177,512.50	$ 2,882,512.50
	$ 15,455,000.00	$ 1,454,912.50	$ 16,909,912.50

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued)

B. Bond Anticipation Notes Payable – Short Term Debt

The following is a summary of bond anticipation notes payable accounted for in the General Capital Fund at December 31, 2018:

Description	Date of Issue	Date of Maturity	Rate	Balance December 31, 2018
Series 2018 A	8/7/2018	8/7/2019	2.75%	$ 4,372,000.00
				$ 4,372,000.00

C. Bonds and Notes Authorized But Not Issued

As of December 31, 2018, the Township had $2,109,502.50 in various General Capital bonds and notes authorized but not issued.

D. Loans Payable

New Jersey Environmental Infrastructure Trust

In 2017 the Township finalized one loan agreement with the State of New Jersey Department of Environmental Protection, pursuant to the 2017A-1 New Jersey Environmental Infrastructure Trust Financing Program.

The loan consists of two agreements, a Trust Loan Agreement of $145,000 to be repaid over a 14 year period at interest rates ranging from 3.00% to 5.00%, and a no interest Fund Loan Agreement of $148,175 to be repaid over a 14 year period. The proceeds of the loans are to provide for the acquisition of a Jet Vac and Sweeper for use by the Township.

Year Principal Interest Total

2019 $ 20,102.83 $ 5,600.00 $ 25,702.83

2020 20,102.83 5,100.00 25,202.83

2021 20,102.83 4,600.00 24,702.83

2022 20,102.83 4,100.00 24,202.83

2023 20,102.83 3,600.00 23,702.83

2024-2028 100,514.15 11,100.00 111,614.15

2029-2031 70,308.65 2,550.00 72,858.65

$ 271,336.95 $ 36,650.00 $ 307,986.95

Summary of Principal Debt

A summary of the changes in long-term and short term debt of the Township is as follows:

	Balance December 31, 2017	Accrued/ Increases	Retired/ Decreases	Balance December 31, 2018	Balance Due Within One Year
General Capital:
General Bonds	$ 19,295,000.00	$ -	$ 3,840,000.00	$ 15,455,000.00	$ 3,485,000.00
Bond Anticipation Notes	-	4,372,000.00	-	4,372,000.00	4,372,000.00
Loans	286,439.78	-	15,102.83	271,336.95	20,102.83
	$ 19,581,439.78	$ 4,372,000.00	$ 3,855,102.83	$ 20,098,336.95	$ 7,877,102.83

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 12. Deferred Compensation Salary Account

The Township offers its employees a Deferred Compensation Plan in accordance with Internal Revenue Code Section 457 which has been approved by the Director of the Division of Local Government Services. The Plan, available to all full time employees at their option, permits employees to defer a portion of their salary to future years. The deferred compensation is not available to participants until termination, retirement, death or unforeseeable emergency. Amounts deferred under Section 457 plans must be held in trust for the exclusive benefits of participating employees and not be accessible by the Township or its creditors. Since the Township does not have a fiduciary relationship with the Plan, the balances and activities of the Plan are not reported in the Township’s financial statements.

Note 13. Accrued Sick, Vacation and Compensation Time

As discussed in Note 1 and in accordance with accounting principles prescribed by the State of New Jersey, the cash basis of accounting is followed for recording the Township’s liability related to unused vacation, sick pay and compensation time. The Township permits certain employees within limits to accumulate unused vacation, sick pay and compensation time, which may be taken as time off or paid at a later date at an agreed upon rate. In accordance with New Jersey accounting principles, this unused accumulated absences amount is not reported as a liability in the accompanying financial statements. It is estimated that accrued benefits for compensated absences are valued at $2,913,963.14 at December 31, 2018.

The Township has established a Trust Fund in accordance with NJSA 40A:4-39 to set aside funds for future payments of compensated absences. As of December 31, 2018, the Township has reserved in the Other Trust Fund $417,396.07 to fund compensated absences in accordance with NJSA 40A:4-39.

Note 14. Risk Management

The Township is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

Joint Insurance Pool

The Township is a member of the Municipal Excess Liability Joint Insurance Fund. The Fund provides the Township with the following coverage

Worker's Compensation	$ 1,700,000
General Liability	$ 20,000,000
Employer's Liability	$ 1,700,000
Auto Liability	$ 300,000
Flood	$ 100,000,000
Property/Boiler and Machinery	$ 125,000,000
Public Officials Liability	$ 2,000,000
Environmental Impairment Liability	$ 1,000,000

Contributions to the Funds are payable in one installment and are based on actuarial assumptions determined by the Funds' actuaries. The Fund publishes its own financial report for the year ended December 31, 2018 which can be obtained on the Fund's website.

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Note 14. Risk Management (continued)

New Jersey Unemployment Compensation Insurance

The Township has elected to fund its New Jersey Unemployment Compensation Insurance under the “Reimbursement Method”. Under this plan, the Township is required to reimburse the New Jersey Unemployment Trust Fund, dollar-for-dollar, for unemployment benefits paid to its former employees who were laid off or furloughed and charged to its account with the State. The Township is billed quarterly for amounts due to the State. The following is a summary of Township contributions, reimbursements to the State for benefits paid and the ending balance of the Township’s unemployment trust fund for the current and previous two years:

Year Contributions Amount

2018 $ 27,538.39 $ 6,636.31 $ 301,089.59

2017 26,451.98 5,830.69 280,187.51

2016 24,993.22 28,445.81 259,566.22

Reimbursed Ending Balance

Note 15. Contingencies

Grantor Agencies

The Township receives financial assistance from the State of New Jersey and the U.S. government in the form of grants. Entitlement to the funds is generally conditional upon compliance with terms and conditions of the grant agreements and applicable regulations, including the expenditure of the funds for eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial and compliance audits by grantors. As a result of these audits, costs previously reimbursed could be disallowed and require repayment to the grantor agency. As of December 31, 2018 the Township estimates that no material liabilities will result from such audits.

Litigation

The Township is a defendant in several legal proceedings that are in various stages of litigation. It is believed that the outcome, or exposure to the Township, from such litigation is either unknown or potential losses, if any, would not be material to the financial statements.

Tax Appeals

Losses arising from tax appeals are recognized at the time a decision is rendered by an administrative or judicial body; however, municipalities may establish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses.

As of December 31, 2018 there were certain tax appeals on file against the Township related to 2015 through 2018 tax years. The Township has estimated the potential exposure to the Township from such appeals is approximately $313,782.95

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 16. Tax Abatements

The Township is authorized by the New Jersey Housing and Mortgage Financing Act Law of 1983, N.J.S.A. 55:14K-1 et seq. (hereinafter “HMFA Law”), and a Resolution of the Council dated March 13, 2007, to enter into property tax abatement agreements for the purpose of attracting affordable housing. The exemption of the projects from real property taxation subject to this law shall not extend beyond the date on which the Agency Mortgage is paid in full, which according to the HMFA Law, may not exceed fifty (50) years.

For the year ended December 31, 2018, the Township abated property taxes totaling $254,272.09 under this program, including the following tax abatement agreement that exceeded 10 percent of the total, which is the percentage the Township considers to be material for purposes of individual disclosure:

Recipient	Purpose	Amount Abated	Pilot Billings
Windsor Crescent LLC	Affordable Housing	$ 254,272.09	$ 78,882.94
		$ 254,272.09	$ 78,882.94

Note 17. Length of Service Awards Program

The ‘Township’s length of service awards program (“LOSAP”) is reported in the Township’s trust fund Statement of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis. The LOSAP provides tax deferred income benefits to active volunteer firefighters and emergency medical personnel.

The tax deferred income benefits for the active volunteer firefighters and emergency medical personnel serving the residents the of the Township come from contributions made solely by the governing body of the Township, on behalf of those volunteers who meet the criteria of a plan created by that governing body. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.

Contributions - If an active member meets the year of active service requirement, a length of service awards program must provide a benefit between the minimum contribution of $100 and a maximum contribution of $1,150 per year. While the maximum amount is established by statute, it is subject to periodic increases that are related to the consumer price index (N.J.S.A. 40A:14-185(f)). The Division of Local Government Services of the State of New Jersey will issue the permitted maximum annually. The Township elected to contribute $0.00 for the year ended December 31, 2018 per eligible volunteer, into the Plan, depending on how many years the volunteer has served. During the year ended December 31, 2018, the Township contributed a total of $2,6214.68 to the plan. Participants direct the investment of the contributions into various investment options offered by the Plan. The Township has no authorization to direct investment contributions on behalf of eligible volunteers nor has the ability to purchase or sell investment options offered by the Plan. The types of investment options, and the administering of such investments, rests solely with the plan administrator.

Participant Accounts - Each participant’s account is credited with the Township’s contribution and Plan earnings, and charged with administrative expenses. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. The Township has placed the amounts deferred, including earnings, in a trust maintained by a third-party administrator for the exclusive benefit of the plan participants and their beneficiaries. Such funds, although subject to the claims of the

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TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 17. Length of Service Awards Program (continued)

Township’s creditors until distributed as benefit payments, are not available for funding the operations of the Township. The funds may also be used to pay the administrative fees charged by the Plan Administrator. Lincoln Financial Group (“Plan Administrator”), an approved Length of Service Awards Program provider, is the administrator of the Plan. The Township’s practical involvement in administering the Plan is essentially limited to verifying the eligibility of each participant and remitting the funds to the Plan Administrator.

Vesting - Benefits, plus actual earnings thereon, are one hundred percent (100%) vested after five (5) years of service.

Payment of Benefits - Upon retirement or disability, participants may select various payout options, which include lump sum, periodic, or annuity payments. In the case of death, with certain exceptions, any amount invested under the participant's account is paid to the beneficiary or the participant's estate. In the event of an unforeseeable emergency, as outlined in the Plan document, a participant or a beneficiary entitled to vested accumulated deferrals may request the local plan administrator to payout a portion of vested accumulated deferrals. During the year ended December 31, 2018 payouts of $-0- were made to vested participants.

Forfeited Accounts – During the year ended December 31, 2018, no accounts were forfeited.

Plan Information - Additional information about the Township's length of service awards program can be obtained by contacting the Plan Administrator.

Note 18. Subsequent Events

Management has reviewed and evaluated all events and transactions that occurred between December 31, 2018 and July 31, 2019, the date that the financial statements were available for issuance, for possible disclosure and recognition in the financial statements. No items have come to the attention of the Township that would require disclosure.

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SUPPLEMENTAL EXHIBITS

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CURRENT FUND

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF CASH AND CASH EQUIVALENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017		$ 19,832,132.40
Increased by Receipts:
Nonbudget Revenues	$ 916,981.95
2018 Budget Refunds	1,156,025.10
Taxes Receivable	155,880,095.35
Tax Title Liens	34,673.18
Revenue Accounts Receivable	8,037,504.74
Prepaid Taxes	791,407.33
State of New Jersey (Ch.29, P.L.1971)	444,183.56
Interfunds	1,358,592.61
Reserve for Police Cars	72,920.00
Due to State of New Jersey - Construction Fees	94,275.00
Due to State of New Jersey - Marriage Licenses	6,750.00
Total Receipts		168,793,408.82
Subtotal		188,625,541.22
Decreased by Disbursements:
2018 Appropriations	38,993,169.32
2017 Reserved Appropriations	1,139,928.94
Accounts Payable	18,803.50
Tax Overpayments	76,920.17
County Taxes Payable	30,838,463.39
Local School District Tax	89,966,447.00
Special District Taxes	6,404,942.00
Municipal Open Space Trust Fund Taxes	1,355,404.55
Change Fund	330.00
Reserve for Police Cars	86,850.18
Reserve for FEMA Reimbursements	10,205.95
Due to State of New Jersey - Construction Fees	88,928.00
Due to State of New Jersey - Marriage Licenses	6,500.00
Interfunds	730,725.66
Total Disbursements		169,717,618.66
Balance December 31, 2018		$ 18,907,922.56

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF DUE FROM STATE - P.L. 1971, C.20 FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 15,297.14
Increased by:
Deductions per Tax Duplicate:
Senior Citizens	$ 58,500.00
Veterans	391,000.00
Deductions Allowed by Tax Collector:
2018 Senior Citizen Deductions	3,500.00
2018 Veteran Deductions	7,000.00 460,000.00

475,297.14
Decreased by:
Received from State of New Jersey	444,183.56
Deductions Disallowed by Tax Collector:
Current Year Senior Citizens & Veterans	16,926.71
Prior Years Senior Citizens & Veterans	4,669.18 465,779.45
Balance December 31, 2018	$ 9,517.69

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General Purpose		$ 154,426,186.88
Special District Tax		6,404,942.00
Added Taxes (54:4-63.1 et seq.)		361,592.58
Total		$ 161,192,721.46
TAX LEVY:
Local School Tax		$ 89,966,447.00
County Taxes (Abstract)	$ 30,689,790.76
County Added & Omitted Taxes	69,159.47	30,758,950.23
Special District Taxes		6,404,942.00
Municipal Open Space		1,355,404.55
Local Tax for Municipal Purposes	32,354,549.88
Add: Additional Taxes Levied	352,427.80	32,706,977.68
Total		$ 161,192,721.46

ANALYSIS OF 2018 PROPERTY TAX LEVY

YEAR	BALANCE DECEMBER 31, 2017	2018 LEVY	ADDED TAXES	COLLECTED			DUE FROM STATE OF NEW JERSEY	OVERPAYMENTS CREATED	OVERPAYMENTS APPLIED	CANCELED	TRANSFERRED TO TAX TITLE LIENS	BALANCE DECEMBER 31, 2018
YEAR	BALANCE DECEMBER 31, 2017	2018 LEVY	ADDED TAXES	2017	2018	2017	DUE FROM STATE OF NEW JERSEY	OVERPAYMENTS CREATED	OVERPAYMENTS APPLIED	CANCELED	TRANSFERRED TO TAX TITLE LIENS	BALANCE DECEMBER 31, 2018
2011	$ 7,925.49	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ 7,925.49	$ -
2012	8,028.32	-	-	-	-	-	-	-	-	-	8,028.32	-
2013	8,320.54	-	-	-	-	-	-	-	-	-	8,320.54	-
2014	7,203.57	-	-	-	-	-	-	-	-	-	7,203.57	-
2015	10,957.99	-	-	-	2,179.36	2,179.36	-	-	-	-	8,778.63	-
2016	25,231.00	-	-	-	13,298.44	13,298.44	-	44,873.10	-	44,853.10	8,932.64	3,019.92
2017	1,664,840.69	-	-	-	1,566,696.97	1,566,696.97	(4,669.18)	-	-	70,326.94	14,531.94	17,954.02
Total	1,732,507.60	-	-	-	1,582,174.77	1,582,174.77	(4,669.18)	44,873.10	-	115,180.04	63,721.13	20,973.94
2018	-	160,831,128.88	361,592.58	3,767,751.28	154,297,920.58	443,073.29	40,971.19	460,771.20	160,682.12	309,648.42	1,793,845.76
Total	$ 1,732,507.60	$ 160,831,128.88	$ 361,592.58	$ 3,767,751.28	$ 155,880,095.35	$ 438,404.11	$ 85,844.29	$ 460,771.20	$ 275,862.16	$ 373,369.55	$ 1,814,819.70

TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF TAX TITLE LIENS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017		$ 2,995,943.38
Increased by:
Transfer from Taxes Receivable	$ 373,369.55
Interest & Costs on Taxes	$ 23,193.26	$ 396,562.81
		3,392,506.19
Decreased by:
Cash Collections		$ 34,673.18
Balance December 31, 2018		$ 3,357,833.01

EXHIBIT A-8

SCHEDULE OF PROPERTY ACQUIRED FOR TAXES FOR THE YEAR ENDED DECEMBER 31, 2017

Balance December 31, 2018 and 2017 $ 6,306,200.00

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	ACCRUED IN 2018	BALANCE DECEMBER 31, 2018
Clerk:
Alcoholic Beverage Licenses	$ -	$ 39,050.00	$ 39,050.00	$ -
Other Licenses	-	31,459.00	31,459.00	-
Fees & Permits	-	247,710.06	247,710.06	-
Municipal Court:
Fines & Costs	37,857.26	490,500.85	495,854.04	32,504.07
Tax Collector:
Interest & Costs on Taxes	-	380,530.96	380,530.96	-
Interest on Investments & Deposits	-	354,193.58	354,193.58	-
Energy Receipts Tax	-	3,352,149.00	3,352,149.00	-
Garden State Trust Fund	-	56,290.00	56,290.00	-
Uniform Construction Code Fees	-	1,972,934.10	1,972,934.10	-
Cablevision Franchise Fee	-	237,399.00	237,399.00	-
Shared Service Agreement - BOE	-	171,360.00	171,360.00	-
Reserve for Debt Service - General Capital Fund	-	550,000.00	550,000.00	-
Reserve for Recycling - Trust Other Fund	-	50,000.00	50,000.00	-
Total	$ 37,857.26	$ 8,032,776.55	$ 8,038,129.74	$ 32,504.07

Cash Receipts	$ 8,037,504.74
Reserve Other	625.00
Total	$ 8,038,129.74

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	RESERVE FOR ENCUMBRANCES	BALANCE AFTER TRANSFERS	PAID OR CHARGED	BALANCE LAPSED
General Government:
Administrative Executive:
Salaries and Wages	$ 4,641.30	$ -	$ 4,641.30	$ -	$ 4,641.30
Other Expenses	52,846.19	1,171.76	51,717.95	14,819.22	36,898.73
Human Services:
Salaries and Wages	332.63	-	1,332.63	1,049.75	282.88
Other Expenses	379.56	368.80	748.36	369.50	378.86
Township Council:
Salaries and Wages	0.12	-	0.12	-	0.12
Other Expenses	697.08	-	697.08	55.00	642.08
Election:
Salaries and Wages	407.23	-	407.23	-	407.23
Other Expenses	236.84	-	236.84	-	236.84
Municipal Clerk:
Salaries and Wages	10,106.16	-	10,106.16	-	10,106.16
Other Expenses	2,321.23	1,589.09	3,910.32	1,729.89	2,180.43
Mayor Office:
Salaries and Wages	0.04	-	0.04	-	0.04
Other Expenses	3,365.50	-	3,365.50	-	3,365.50
Financial Administration:
Salaries and Wages	27,509.39	-	27,509.39	-	27,509.39
Other Expenses	5,509.88	13,172.57	18,682.45	9,597.57	9,084.88
Audit Services:
Other Expenses	-	44,500.00	44,500.00	44,500.00	-
Data Processing:
Salaries and Wages	1,500.25	-	1,500.25	-	1,500.25
Other Expenses	6,599.72	2,312.41	8,912.13	2,180.41	6,731.72
Collection of Taxes:
Salaries and Wages	9,006.21	2,097.42	11,103.63	2,097.42	9,006.21
Other Expenses	4,413.42	11,951.27	16,364.69	11,716.48	4,648.21
Assessment of Taxes:
Salaries and Wages	33,181.40	2,027.61	35,209.01	2,027.61	33,181.40
Other Expenses	9,563.78	1,169.56	10,733.34	579.11	10,154.23
Purchasing:
Salaries and Wages	10,820.52	1,269.11	12,089.63	2,323.61	9,766.02
Other Expenses	164.94	424.48	589.42	370.05	219.37
Legal Services & Costs:
Other Expenses	167,056.49	23,458.86	190,515.35	38,091.44	152,423.91
Engineering Services & Costs:
Salaries and Wages	27,473.45	2,364.10	29,837.55	3,698.62	26,138.93
Other Expenses	32,828.68	48,357.73	81,186.41	29,791.34	51,395.07
Historical Commission:
Other Expenses	125.00	-	125.00	-	125.00
Community Alliance-Alcoholism & Drugs:
Salaries and Wages	1,140.00	-	1,140.00	-	1,140.00
Other Expenses	100.00	-	100.00	-	100.00
Mayor's Community Advisory Board:
Other Expenses	50.00	-	50.00	-	50.00
Economic Development Advisory Board:
Other Expenses	1,175.00	-	1,175.00	-	1,175.00

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	RESERVE FOR ENCUMBRANCES	BALANCE AFTER TRANSFERS	PAID OR CHARGED	BALANCE LAPSED
Planning/Zoning Boards:
Salaries and Wages	151.53	1,572.87	1,724.40	1,572.87	151.53
Other Expenses	23,081.61	819.13	23,900.74	21,385.62	2,515.12
Maintenance of Tax Maps:
Other Expenses	13,028.19	-	13,028.19	10,229.25	2,798.94
Rent Leveling Board:
Salaries and Wages	1,845.00	-	1,845.00	96.80	1,748.20
Other Expenses	27,792.80	-	27,792.80	7,280.90	20,511.90
Code Enforcement - Other:
Salaries and Wages	14,098.36	1,326.00	15,424.36	2,377.65	13,046.71
Other Expenses	4,976.87	1,911.75	6,888.62	2,393.18	4,495.44
Commercial Building Standards:
Salaries and Wages	4,150.00	-	4,150.00	-	4,150.00
Other Expenses	520.56	-	520.56	(12.32)	532.88
Unsafe Structures Committee:
Other Expenses	21,000.00	-	21,000.00	-	21,000.00
Insurance:
General Liability	14,424.59	-	14,424.59	14,199.55	225.04
Employee Group Health	156,132.27	9,620.41	165,752.68	10,082.49	155,670.19
Health Benefit Waiver	5,120.00	-	5,120.00	-	5,120.00
Unemployment Trust Fund	10,000.00	-	10,000.00	-	10,000.00
Police Department:
Salaries and Wages	142,265.23	-	142,265.23	32,913.72	109,351.51
Other Expenses	54,521.78	283,339.15	337,860.93	302,589.73	35,271.20
Police Dispatch/911:
Salaries and Wages	66,484.27	-	66,484.27	5,154.20	61,330.07
Emergency Management:
Salaries and Wages	289.29	-	289.29	14.52	274.77
Other Expenses	12,815.45	4,653.25	17,468.70	4,733.26	12,735.44
Municipal Prosecutor:
Other Expenses	0.04	6,666.66	6,666.70	6,666.70	-
Juvenile Conference Committee:
Salaries and Wages	1,300.00	-	1,300.00	-	1,300.00
Other Expenses	25.00	-	25.00	-	25.00
Streets & Roads Maintenance:
Salaries and Wages	96,350.05	3,757.43	100,107.48	9,456.49	90,650.99
Other Expenses	36,990.58	47,308.50	84,299.08	38,509.00	45,790.08
Snow Removal:
Other Expenses	3,950.00	79,567.82	83,517.82	35,814.91	47,702.91
Shade Tree Commission:
Salaries and Wages	345.00	-	345.00	-	345.00
Other Expenses	3,004.00	-	3,004.00	351.00	2,653.00
Solid Waste Collection:
Salaries and Wages	3,713.25	-	3,713.25	-	3,713.25
Other Expenses	189.37	46,622.00	46,811.37	46,622.00	189.37
Buildings & Grounds:
Salaries and Wages	23,305.03		23,305.03	1,502.60	21,802.43
Other Expenses	17,801.90	31,944.70	49,746.60	40,703.01	9,043.59
Vehicle Maintenance:
Salaries and Wages	25,192.98	-	25,192.98	-	25,192.98
Other Expenses	19,452.24	69,867.84	89,320.08	56,772.62	32,547.46
Community Services Act:
Other Expenses	-	175,000.00	175,000.00	175,000.00	-

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	RESERVE FOR ENCUMBRANCES	BALANCE AFTER TRANSFERS	PAID OR CHARGED	BALANCE LAPSED
Public Health Services:
Salaries and Wages	6,396.94	-	6,396.94	-	6,396.94
Other Expenses	1,110.43	-	1,110.43	-	1,110.43
Environmental Health Services-Environmental Commission:
Salaries and Wages	145.00	-	145.00	-	145.00
Other Expenses	425.00	-	425.00	-	425.00
Animal Control Services:
Salaries and Wages	416.17		1,716.17	1,462.73	253.44
Other Expenses	14,712.71	911.62	15,624.33	2,376.87	13,247.46
Going Green Committee:
Other Expenses	100.00	-	100.00	-	100.00
Recreation Services & Programs:
Salaries and Wages	5,633.66		5,633.66	1,108.85	4,524.81
Other Expenses	1,261.33	1,581.76	2,843.09	1,740.45	1,102.64
Office for the Golden Age:
Salaries and Wages	42,482.99		42,482.99	3,735.06	38,747.93
Other Expenses	3,396.20	1,105.02	4,501.22	3,255.97	1,245.25
Handicapped Committee:
Salaries and Wages	9,901.68	-	9,901.68	807.72	9,093.96
Other Expenses	6,629.53	-	6,629.53	89.70	6,539.83
Park Maintenance:
Other Expenses	210.14	3,590.00	3,800.14	117.10	3,683.04
Municipal Court:
Salaries and Wages	47,979.64	-	47,979.64	1,570.74	46,408.90
Other Expenses	8,963.81	1,256.76	10,220.57	1,300.86	8,919.71
Salary & Wage Adjustment
Salaries and Wages	10,890.10	-	10,890.10	-	10,890.10
Postage & Photocopy:
Other Expenses	5,796.43	4,293.75	10,090.18	3,837.00	6,253.18
Utility Expenses & Bulk Purchases:
Electricity	77,710.58	96,561.64	174,272.22	137,538.80	36,733.42
Street Lighting	1,744.87	18,862.50	20,607.37	20,268.03	339.34
Telecommunication Costs	6,093.76	17,773.47	23,867.23	8,268.16	15,599.07
Telecommunication
Costs - Lease Obligations	21,715.08	-	21,715.08	-	21,715.08
Natural Gas	14,287.96	32,046.38	46,334.34	31,784.66	14,549.68
Fuel & Petroleum Products	269,352.97	55,611.72	324,964.69	34,792.70	290,171.99
Water	1,000.00	-	1,000.00	-	1,000.00
Landfill/Solid Waste Disposal Costs:
Other Expenses	34,920.52	15,077.18	49,997.70	40,355.03	9,642.67
Legler Landfill - Postclosure Monitoring:
Other Expenses	-	5,716.41	5,716.41	4,943.50	772.91
Uniform Construction Code:
Construction Code Department:
Salaries and Wages	111,299.09	7,781.78	119,080.87	9,904.68	109,176.19
Other Expenses	62,179.69	17,911.97	80,091.66	15,388.59	64,703.07
Statutory Expenditures:
Social Security System (O.A.S.I.)	58,360.30	1,698.02	60,058.32	3,254.78	56,803.54
Defined Contribution
Retirement Program	3,903.25	-	3,903.25	-	3,903.25

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TOWNSHIP OF JACKSON CURRENT FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2018
	BALANCE DECEMBER 31, 2017	RESERVE FOR ENCUMBRANCES	BALANCE AFTER TRANSFERS	PAID OR CHARGED	BALANCE LAPSED
Service Contracts:
Sewer & Water Purposes - MUA	-	600.00	600.00	600.00	-
Relocation Assistance	2,000.00	-	2,000.00	-	2,000.00
LOSAP	-	40,000.00	40,000.00	40,000.00	-
Shared Service Agreement BOE	2,684.29	575.28	3,259.57		3,259.57
Matching Funds for Grants	10,562.50	-	10,562.50	-	10,562.50
Total General Appropriations	$ 2,062,135.87	$ 1,243,167.54	$ 3,305,303.41	$ 1,359,908.75	$ 1,945,394.66
	Cash Disbursements		$ 1,139,928.94
	Accounts Payable		219,979.81
	Total		$ 1,359,908.75

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF ACCOUNTS PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 419,909.75
Increased by:
Appropriation Reserves Charged	219,979.81
	639,889.56
Decreased by:
Cash Disbursed	$ 18,803.50
Cancelled	158,376.70 177,180.20
Balance December 31, 2018	$ 462,709.36

SCHEDULE OF RESERVE FOR ENCUMBRANCES FOR THE YEAR ENDED DECEMBER 31, 2018
BALANCE DECEMBER 31, 2017	EXHIBIT A-12
BALANCE DECEMBER 31, 2017	$ 1,243,167.54
INCREASED BY:
2018 Budget Appropriations	1,383,951.00
SUBTOTAL	2,627,118.54
DECREASED BY:
Transfer to Appropriation Reserves	1,243,167.54
BALANCE DECEMBER 31, 2018	$ 1,383,951.00

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF PREPAID TAXES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017		$ 3,767,751.28
Increased by:
2018 Tax Collectionsions on 2019 Taxes	$ 791,407.33
Overpayments Transferred to 2019 Taxes	33,751.10	825,158.43
		4,592,909.71
Decreased by:
Transfer to Overpayment	14,092.60
Applied to 2018 Taxes Receivable	3,767,751.28	3,781,843.88
Balance December 31, 2018		$ 811,065.83

EXHIBIT A-14

SCHEDULE OF TAX OVERPAYMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 502,605.91
Increased by:
Overpayments Created	99,936.89
	602,542.80
Decreased by:
Overpayments Applied	$ 460,771.20
Overpayments Transferred to Prepaid Taxes	33,751.10
Cash Refunds	76,920.17 571,442.47
Balance December 31, 2018	$ 31,100.33

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF COUNTY TAXES PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 148,672.62
Increased by:
County Tax	$ 25,940,725.55
County Library Tax	2,830,305.83
County Health Tax	1,022,000.48
County Open Space Preservation Tax	896,758.90
Due County for Added & Omitted Taxes	69,159.47
	30,758,950.23
	30,907,622.85
Decreased by:
Payments	30,838,463.39
Balance December 31, 2018	$ 69,159.46

SCHEDULE OF LOCAL DISTRICT SCHOOL TAX PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018
BALANCE DECEMBER 31, 2017	EXHIBIT A-16
BALANCE DECEMBER 31, 2017	$ -
INCREASED BY:
Levy - Calendar Year 2018	89,966,447.00
	89,966,447.00

Balance December 31, 2017	$ -
Increased by:
Levy - Calendar Year 2018	89,966,447.00
	89,966,447.00
Decreased by:
Disbursed	89,966,447.00
Balance December 31, 2018	$ -

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF SPECIAL DISTRICT TAXES PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

Increased by:
Fire Districts Levy:
Cassville Fire District #2	$ 1,829,075.00
Hulses Corner Fire District #3	2,999,727.00
Jackson Mills Fire District #4	1,576,140.00
		6,404,942.00
		6,404,942.00
Decreased by:
Disbursed		6,404,942.00
Balance December 31, 2018	$ -

EXHIBIT A-18 SCHEDULE OF DUE TO STATE OF NEW JERSEY - CONSTRUCTION FEES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 12,980.00
Increased by:
Collections	94,275.00
	107,255.00
Decreased by:
Disbursed	88,928.00
Balance December 31, 2018	$ 18,327.00
SCHEDULE OF DUE TO STATE OF NEW JERSEY - MARRIAGE LICENSE FEES FOR THE YEAR ENDED DECEMBER 31, 2018
Balance December 31, 2017	$ 1,450.00
Increased by:
Collections	6,750.00
	8,200.00
Decreased by:
Disbursed	6,500.00
Balance December 31, 2018	$ 1,700.00

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF RESERVE FOR REVALUATION PROGRAM FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 and 2017 $5,743.40

EXHIBIT A-21

SCHEDULE OF DUE TO MUNICIPAL OPEN SPACE TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ -
Increased by:
Open Space Tax	$ 1,352,343.81
Added & Omitted Taxes	3,060.74
	1,355,404.55
	1,355,404.55
Decreased by:
Cash Disbursed	1,355,404.55
Balance December 31, 2018	$ -

SCHEDULE OF RESERVE FOR GARDEN STATE TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2018

EXHIBIT A-22

Balance December 31, 2018 and 2017

$ 0.95

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF RESERVE FOR STATE BOARD OF TAXATION APPEALS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 and 2017

$ 313,782.95

EXHIBIT A-24

SCHEDULE OF RESERVE FOR MASTER PLAN FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE DECEMBER 31, 2018 BALANCE DECEMBER 31, 2017 BALANCE DECEMBER 31, 2016

SCHEDULE OF RESERVE OTHER FOR THE YEAR ENDED DECEMBER 31, 2018 EXHIBIT A-25

Balance December 31, 2018 BALANCE DECEMBER 31, 2017 BALANCE DECEMBER 31, 2016

Decreased by: Accrued as Revenue BALANCE DECEMBER 31, 2018 BALANCE DECEMBER 31, 2017

Balance December 31, 2018 BALANCE DECEMBER

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EXHIBIT A-26

TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF RESERVE FOR COAH STATE PLAN FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 and 2017 $ 915,250.00

SCHEDULE OF RESERVE FOR FEMA REIMBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

EXHIBIT A-27

Balance December 31, 2017 $ 66,933.15

Decreased by: Cash Disbursements 10,205.95

Balance December 31, 2018 $ 56,727.20

EXHIBIT A-28

SCHEDULE OF RESERVE FOR POLICE CARS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 112,113.95

Increased by: Cash Receipts 72,920.00

185,033.95

Decreased by: Cash Disbursements 86,850.18

Balance December 31, 2018 $ 98,183.77

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TOWNSHIP OF JACKSON CURRENT FUND SCHEDULE OF INTERFUNDS - OTHER FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018

	FEDERAL & STATE GRANT FUND	DOG TRUST	TRUST OTHER	TOTAL
Balance December 31, 2017
Interfunds Receivable (Payable)	$ (471,796.36)	$ 15,061.67	$ 2,212.81	$ (454,521.88)
Subtotal	(471,796.36)	15,061.67	2,212.81	(454,521.88)
Increased by:
Anticipated Revenue	1,081,240.97	-	-	1,081,240.97
Cash Disbursements	292,193.49	-	438,532.17	730,725.66
Cancellation of Appropriation Reserves	36,531.30	-	-	36,531.30
Subtotal	1,409,965.76	-	438,532.17	1,848,497.93
Decreased by:
Cash Collections:
Grants Receivable	766,008.83	-	-	766,008.83
Unappropriated Funds	137,544.43	-	-	137,544.43
Interfunds Liquidated	-	15,061.67	439,977.68	455,039.35
Grant Appropriations	1,092,521.97	-	-	1,092,521.97
Cancellation of Grant Receivables	26,202.28	-	-	26,202.28
Subtotal	2,022,277.51	15,061.67	439,977.68	2,477,316.86
Balance December 31, 2018
Interfunds Receivable (Payable)	$ (1,084,108.11)	$ -	$ 767.30	$ (1,083,340.81)
Due From Developers Escrow			$ 1,189.21
Due to General Trust			(201.91)
Due To Parks & Recreation			(220.00)
Total			$ 767.30

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TOWNSHIP OF JACKSON FEDERAL AND STATE GRANT FUND SCHEDULE OF DUE FROM CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

$ 471,796.36

Balance December 31, 2017

Increased by:
Deposited in Current Fund:
Unappropriated Reserves	$ 137,544.43
Grants Receivable	766,008.83
Cancellation of Grants Receivable	26,202.28
2018 Budget Appropriations	1,092,521.97
		2,022,277.51
		2,494,073.87
Decreased by:
Disbursed by Current Fund:
Appropriated Reserves	292,193.49
Cancellation of Appropriated Reserves	36,531.30
2018 Anticipated Revenue	1,081,240.97
		1,409,965.76

1,409,963.76

Balance December 31, 2018 $ 1,084,108.11

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	BALANCE DECEMBER 31, 2017	2018 ANTICIPATED REVENUE	CASH RECEIVED	TRANSFER FROM UNAPPROPRIATED RESERVE	CANCELLED	BALANCE DECEMBER 31, 2018
State Grants:
NJ-DOT Municipal Aid-Wright Debow '14	$ 82,241.75	$ -	$ 82,241.75	$ -	$ -	$ -
NJ-DOT Municipal Aid- Woodlane/New Central '18	-	775,000.00	581,250.00	-	-	193,750.00
Recycling Tonnage - 2018	-	48,115.29		48,115.29	-	-
966 Emergency Grant - 2017	1,796.84	-	1,731.41	-	65.43	-
NJ Handicapped Recreational Opportunities - 2018	-	15,000.00	15,000.00	-	-	-
Municipal Alliance Alcohol & Drug Alliance - 2017	33,124.00	-	10,930.67	-	22,193.33	-
Municipal Alliance Alcohol & Drug Alliance - 2018	-	33,124.00	-	-	-	33,124.00
Safe & Secure Neighborhood - 2017	15,602.91	-	15,602.91	-	-	-
Safe & Secure Neighborhood - 2018	-	28,805.00	13,202.09	-	-	15,602.91
Alcohol Education and Rehabilitation Fund - 2018	-	4,889.83	-	4,889.83	-	-
Clean Communities - 2018	-	106,770.16	-	106,770.16	-	-
Body Armor Replacement Grant - 2018	-	7,811.40	-	7,811.40	-	-
Drunk Driving Enforcement Fund - 2018	-	13,292.69	-	13,292.69	-	-
Total State	132,765.50	1,032,808.37	719,958.83	180,879.37	22,258.76	242,476.91
Federal Grants:
Bullet Proof Vest 2018	-	7,222.60	-	-	-	7,222.60
Drive Sober or Get Pulled Over - 2018	-	5,500.00	-	-	-	5,500.00
FEMA Hazard Mitigation - Townhall Generator	3,943.52	-	-	-	3,943.52	-
Drive Sober or Get Pulled Over - 2017	5,500.00	-	5,500.00	-	-	-
OC Office of Senior Services - Information Assistance Gr	-	24,710.00	24,710.00	-	-	-
Cops in Shops Fall Initiative - 2017	4,840.00	-	4,840.00	-	-	-
Cops in Shops Summer/Shore Initiative - 2018	-	4,400.00	4,400.00	-	-	-
Distracted Drive Crackdown - 2018	-	6,600.00	6,600.00	-	-	-
Total Federal	14,283.52	48,432.60	46,050.00	-	3,943.52	12,722.60
Total	$ 147,049.02	$ 1,081,240.97	$ 766,008.83	$ 180,879.37	$ 26,202.28	$ 255,199.51

TOWNSHIP OF JACKSON FEDERAL AND STATE GRANT FUND SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

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	BALANCE DECEMBER 31, 2017	TRANSFERRED FROM 2018 BUDGET	PRIOR YEAR ENCUMBRANCES	EXPENDED	RESERVE FOR ENCUMBRANCES	CANCELLED	BALANCE DECEMBER 31, 2018
State Grants:
Recycling Tonnage Grant - 2009	$ 34,748.21	$ -	$ -	$ 19,750.89	$ 6,230.95	$ -	$ 8,766.37
Recycling Tonnage Grant - 2010	44,674.71	-	-	-	-	-	44,674.71
Recycling Tonnage Grant - 2011	66,707.04	-	-	-	-	-	66,707.04
Recycling Tonnage Grant - 2012	49,031.10	-	-	-	-	-	49,031.10
Recycling Tonnage Grant - 2013	2,168.87	-	-	2,160.00	-	-	8.87
Recycling Tonnage Grant - 2014	26,388.18	-	-	13,761.97	-	-	12,626.21
Recycling Tonnage Grant - 2015	100,249.26	-	-	-	-	-	100,249.26
Recycling Tonnage Grant - 2016	76,648.12	-	-	-	-	-	76,648.12
Recycling Tonnage Grant - 2018	-	48,115.29	-	-	-	-	48,115.29
Body Armor Replacement Grant - 2013	884.75	-	-	708.00	-	-	176.75
Body Armor Replacement Grant - 2017	6.20	-	-	-	-	-	6.20
Body Armor Replacement Grant - 2018	-	7,811.40	-	7,811.40	-	-	-
Drunk Driving Enforcement Fund -2014	2,988.85	-	-	2,875.89	-	-	112.96
Drunk Driving Enforcement Fund -2015	9,634.34	-	-	7,431.46	222.50	-	1,980.38
Drunk Driving Enforcement Fund -2017	22,417.47	-	-	-	-	-	22,417.47
Drunk Driving Enforcement Fund -2018	-	13,292.69	-	-	-	-	13,292.69
Alcohol Education & Rehabilitation -2013	2,790.01	-	-	-	-	-	2,790.01
Alcohol Education & Rehabilitation -2016	2,534.13	-	-	-	-	-	2,534.13
Alcohol Education & Rehabilitation -2017	3,142.43	4,889.83	-	-	-	-	8,032.26
Clean Communities Program -2017	27,488.29	-	4,801.36	32,199.89	55.15	-	34.61
Clean Communities Program -2018	-	106,770.16	-	59,214.12	2,626.00	-	44,930.04
Green Communities-2013	2,269.48	-	-	-	-	2,269.48	-
Recycling Mini Grant	2,906.35	-	-	-	-	-	2,906.35
Stormwater Management	371.60	-	-	-	-	-	371.60
Going Green Sustainable/Small Cities 2012	1,000.00	-	-	-	-	-	1,000.00
NJ-DOT Municipal Aid-Woodlane/New Central '18	-	775,000.00	-	39,586.11	735,413.89	-	-
966 Emergency Management Grant -2017	65.43	-	-	-	-	65.43	-
Municipal Alliance -2017/2018	28,866.44	-	1,453.26	8,126.37	-	22,193.33	-
Municipal Alliance -2018/2019	-	33,124.00	-	3,334.11	661.62	-	29,128.27
Safe and Secure Neighborhood -2017	15,602.91	-	-	15,602.91	-	-	-
Safe and Secure Neighborhood -2018	-	28,805.00	-	13,202.09	-	-	15,602.91
Handicapped Recreation Opportunities -2018	-	15,000.00	-	15,000.00	-	-	-
Total State Grants	523,584.17	1,032,808.37	6,254.62	240,765.21	745,210.11	24,528.24	552,143.60

TOWNSHIP OF JACKSON FEDERAL AND STATE GRANT FUND SCHEDULE OF STATE AND FEDERAL GRANTS - APPROPRIATED FOR THE YEAR ENDED DECEMBER 31, 2018

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	BALANCE DECEMBER 31, 2017	TRANSFERRED FROM 2018 BUDGET	PRIOR YEAR ENCUMBRANCES	EXPENDED	RESERVE FOR ENCUMBRANCES	CANCELLED	BALANCE DECEMBER 31, 2018
Federal Grants:
Ocean County Office of Senior Services - Information Systems Grant 2017	0.66	-	5,589.34	5,589.34	-	0.66	-
Information Systems Grant 2018	-	24,710.00	-	18,228.56	6,481.44	-	-
Townhall Generator	6,454.07	-	-	-	-	6,454.07	-
Bulletproof Vest Partnership - 2018	-	7,222.60	-	-	-	-	7,222.60
Cops in Shops Fall Initiative - 2017	4,840.00	-	-	4,840.00	-	-	-
Cops in Shops Summer/Shore Initiative - 2018	-	4,400.00	-	4,400.00	-	-	-
Drive Sober or Get Pulled Over - 2017	3,025.00	-	-	3,025.00	-	-	-
Drive Sober or Get Pulled Over - 2018	-	5,500.00	-	2,750.00	-	-	2,750.00
Distracted Driving Crackdown '18	-	6,600.00	-	6,600.00	-	-	-
Total Federal Grants	14,319.73	48,432.60	5,589.34	45,432.90	6,481.44	6,454.73	9,972.60
Local Grants:
Municipal Alliance - 2017/2018 - Local Match	8,281.00	-	-	2,732.67	-	5,548.33	-
Municipal Alliance - 2018/2019 - Local Match	-	8,281.00	-	262.71	1,145.83	-	6,872.46
Handicapped Recreation Opportunities - 2018	-	3,000.00	-	3,000.00	-	-	-
	8,281.00	11,281.00	-	5,995.38	1,145.83	5,548.33	6,872.46
Totals	$ 546,184.90	$ 1,092,521.97	$ 11,843.96	$ 292,193.49	$ 752,837.38	$ 36,531.30	$ 568,988.66

TOWNSHIP OF JACKSON FEDERAL AND STATE GRANT FUND SCHEDULE OF STATE AND FEDERAL GRANTS - APPROPRIATED FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON FEDERAL AND STATE GRANT FUND SCHEDULE OF STATE AND FEDERAL GRANTS - UNAPPROPRIATED FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE			BALANCE
	DECEMBER 31, 2017	RECEIVED 2018	ANTICIPATED AS REVENUE	DECEMBER 31, 2018
State Grants:
Alcohol Education & Rehabilitation	$ 4,889.83	$ 4,174.25	$ 4,889.83	$ 4,174.25
NJ Body Armor	7,811.40	-	7,811.40	-
Clean Communities	-	106,770.16	106,770.16	-
Drunk Driving Enforcement Fund	-	26,600.02	13,292.69	13,307.33
Recycling Tonnage	48,115.29	-	48,115.29	-
Total	$ 60,816.52	$ 137,544.43	$ 180,879.37	$ 17,481.58

EXHIBIT A-34

SCHEDULE OF RESERVE FOR ENCUMBRANCES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 11,843.96
Increased by:
Charged to Appropriation Reserves	752,837.38
	764,681.34
Decreased by:
Applied to Appropriated Reserves	11,843.96
Balance December 31, 2018	$ 752,837.38

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TRUST FUND

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	ANIMAL CONTROL TRUST FUND		OPEN SPACE TRUST FUND		TRUST OTHER FUND
Balance December 31, 2017		$ 130,250.89		$ 4,172,884.03		$ 12,360,836.48
Increased by Receipts:
Reserve for Animal Control Trust Fund
Expenditures	$ 49,829.91		$ -		$ -
Interfund Due Current	-		-		438,532.17
Various Reserves	-		-		5,733,307.14
Due from Ocean County Community
Development Block Grant	-		-		87,484.17
Reserve for Open Space	-		1,386,945.67		-
Due to State of New Jersey	6,048.00		-		-
Total Receipts		55,877.91		1,386,945.67		6,259,323.48
Total		186,128.80		5,559,829.70		18,620,159.96
Decreased by Disbursements:
Due to State of New Jersey	6,096.60		-		-
Animal Control Trust Fund Expenditures (R.S.4:19015.11)	49,008.89		-		-
Interfund - Current Fund	15,061.67		-		439,977.68
Community Development Block Grant	-		-		144,000.00
Various Reserves	-		-		5,600,839.46
Reserve for Open Space	-		762,730.59		-
Total Disbursements		70,167.16		762,730.59		6,184,817.14
Balance December 31, 2018		$ 115,961.64		$ 4,797,099.11		$ 12,435,342.82

TOWNSHIP OF JACKSON TRUST FUND SCHEDULE OF CASH - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON ANIMAL CONTROL TRUST FUND SCHEDULE OF DUE TO STATE OF NEW JERSEY FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 65.40
Increased by:
Cash Receipts	6,048.00
Subtotal	6,113.40
Decreased by:
Cash Disbursements	6,096.60
Balance December 31, 2018	$ 16.80

EXHIBIT B-6

SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 115,123.82
Increased by:
2018 Dog License Fees Collected	49,829.91
Subtotal	164,953.73
Decreased by:
Expenditures Under R.S.4:19-15:11 - Cash	49,008.89
Balance December 31, 2018	$ 115,944.84

LICENSE FEES COLLECTED

YEAR	AMOUNT
2017	$ 58,379.00
2016	$ 57,604.82
Total	$ 115,983.82

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TOWNSHIP OF JACKSON TRUST OTHER FUND SCHEDULE OF INTERFUND - CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $2,212.81

Increased by:
Cash Receipts	438,532.17
	440,744.98
Decreased by:
Cash Disbursements	439,977.68
Balance December 31, 2018	$ 767.30

EXHIBIT B-8 SCHEDULE OF DUE FROM COUNTY OF OCEAN COMMUNITY DEVELOPMENT BLOCK GRANT FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 221,374.20
Increased by:
Grant Awards 2018	144,000.00
	365,374.20
Decreased by:
Cash Receipts	87,484.17
Balance December 31, 2018	$ 277,890.03
Analysis of Balance, December 31, 2018
CT-1512-16	$ 9,415.03
CT-1512-17	124,475.00
CT-1512-18	144,000.00
	$ 277,890.03

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TOWNSHIP OF JACKSON TRUST OTHER FUND SCHEDULE OF VARIOUS RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	INCREASES	DECREASES	BALANCE DECEMBER 31, 2018
Reserve for:
Municipal Alliance	$ 1,519.27	$ -	$ -	$ 1,519.27
Developer Escrow	4,537,341.90	1,130,863.13	1,209,492.37	4,458,712.66
Recreation Trust	214,991.70	463,891.99	487,029.68	191,854.01
Handicapped Commission	13,917.87	20,266.22	21,589.07	12,595.02
Tax Title Liens Premiums/ Redemptions	1,694,792.17	1,803,600.27	2,008,282.99	1,490,109.45
Unemployment Trust	280,187.51	27,538.39	6,636.31	301,089.59
Parking Offense Adjudication Act	2,410.00	94.00	-	2,504.00
Recycling Trust	372,489.95	64,465.63	178,376.57	258,579.01
Harmony Trust	474.00	-	-	474.00
Special Law Enforcement Fund	116,340.43	48,862.17	66,881.75	98,320.85
Public Defender Fees	21,888.14	25,307.00	27,108.05	20,087.09
Tree Escrow	529,394.43	42,815.20	46,063.64	526,145.99
Sick Leave Trust Fund	330,939.70	200,000.00	113,543.63	417,396.07
Off Duty Police	85,578.69	934,272.50	857,970.00	161,881.19
Youth Advisory	71.87	-	-	71.87
Management of Feral Cats	47.44	-	-	47.44
Snow Removal	1,210,154.84	313,887.11	210,197.43	1,313,844.52
C.O.A.H.	2,145,920.18	471,003.62	175,383.79	2,441,540.01
Clean Communities Donation	6.92	-	-	6.92
Developers Contribution Curbs & Sidewalks	234,884.80	38,135.00	20,000.00	253,019.80
Detention Basin	593,659.91	4,160.64	63,187.21	534,633.34
Section 125 Flex Spending	165.80	1.27	-	167.07
Community Development Block Grant	192,820.35	144,000.00	109,096.97	227,723.38
Police Donations	-	143.00	-	143.00
Total	$ 12,579,997.87	$ 5,733,307.14	$ 5,600,839.46	$ 12,712,465.55

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TOWNSHIP OF JACKSON LENGTH OF SERVICE AWARD PROGRAM FUND ("LOSAP") SCHEDULE OF FUNDS HELD BY TRUSTEE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017		$ 116,553.25
Increased by:
Township Contributions		2,614.68
		119,167.93
Decreased by:
Account Fees	$ 475.00
Unrealized Loss on Investments	4,292.95	4,767.95
Balance December 31, 2018		$ 114,399.98

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SCHEDULE OF RESERVE FOR LOSAP FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017		$ 116,553.25
Increased by:
Township Contributions		2,614.68
		119,167.93
Decreased by:
Account Fees	$ 475.00
Unrealized Loss on Investments	4,292.95	4,767.95
Balance December 31, 2018		$ 114,399.98

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GENERAL CAPITAL FUND

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF CASH AND CASH EQUIVALENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 2,407,348.64
Increased by:
Bond Anticipation Notes	$ 4,372,000.00
Reserve for Debt Service - Other	34,935.00
Capital Improvement Fund	450,000.00
	4,856,935.00

Decreased by:	7,264,283.64
Reserve for Fire Damage - Annex Building	8.42
Reserve for Debt Service - Open Space Bonds	550,000.00
Improvement Authorizations	1,164,255.44
	1,714,263.86
Balance December 31, 2018	$ 5,550,019.78

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND ANALYSIS OF GENERAL CAPITAL CASH AND INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE DECEMBER 31, 2018

Capital Improvement Fund $ 426,385.08

Reserve for Encumbrances 1,047,949.11

Capital Fund Balance 114,061.99

Reserve for Debt Service - Open Space Bonds 1,203,770.57

Reserve for Building Department Facilities 3,217.61

Reserve for Debt Service - Other 78,070.22

Improvement Authorizations:

Ordinance Number: DESCRIPTION

09-07(i) Municipal Park Facilities (Recreation Fields) 1,637.08

09-07(iii) Construction of Public Works Storage Building 32,649.43

09-07(iv)/28-07 Acquisition of Security, Telecommunications & GPS Equipment 24,828.24

09-07(vi) Improvements to Library & Municipal Facilities 31,687.58

29-08(ii) Telephone/Data System Upgrade 31,433.04

19-09(ii) Public Water Service Installation 81,039.70

19-09(iv) Implementation of Recycling Center 409.83

19-09(vi) Acquisition of Equipment for Public Works 5,002.00

19-09(vii) Acquisition of Passenger Bus for Senior Center 4,861.73

25-10 Municipal Capital Improvements 104,902.58

25-10 Township Recycling Center 27,419.90

25-10 Technology Upgrades 11,287.93

25-10 Police Department Equipment 17,471.24

25-10 Public Works Equipment 71,147.03

03-12 DPW Equipment 81,970.35

03-12 Ambulance 35,154.39

03-12 Non-Passenger Vehicles 8,522.42

18-13(i) Acquisition of DPW Equipment 11,263.48

18-13(iii) Record Retention/Microfilming 26.15

18-13(vi) Various Road/Drainage and Sidewalk Improvements 127,810.27

20-14(i) Acquisition of DPW Equipment 84,676.53

20-14(ii) Various Road/Drainage and Sidewalk Improvements 124.66

20-14(iii) Acquisition of Senior Center Bus 5,317.70

20-14(iv) Acquisition of UCC non-passenger Vehicles 3,989.58

20-14 Section 20 Costs 180,489.50

21-15 DPW Equipment/Road Repair 4,317.91

21-15 Police Equipment 127,227.43

21-15 Various Park Improvements 13,274.25

21-15 Various Building Improvements 1,438.04

21-15 Municipal Court Equipment 38,029.06

21-15 Section 20 Costs 239,445.50

17-16 DPW Equipment/Gas Boy - Cap Project 69,958.12

17-16 Misc. Public Works Projects/Repairs 15,432.00

17-16 Justice Complex 84,977.14

17-16 Police CAD/Vehicles 63,389.08

17-16 Section 20 Costs 307,726.50

09-17 Road/SW/Drainage 79,898.61

09-17 DPW Projects & Repairs 511,938.51

09-17 Assessor Vehicle 473.00

09-17 Section 20 Costs 262,576.00

18-18 SR CTR Mini-Bus 1,271.64

18-18 Police Vehicles (128,388.53)

18-18 Engineering 5,238.19

18-18 Various Park Improvements 2,380.99

18-18 Various Building Improvements 2,380.99

18-18 DPW Roads/Claw (13,316.67)

18-18 Section 20 Costs 2,345.10

19-18 Section 20 Costs (570.00)

$ 5,550,019.78

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF DUE FROM JACKSON MUA FOR SHARED SERVICES AGREEMENT FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 395.00
Decreased by:
Cancelled	395.00
Balance December 31, 2018	$ -

EXHIBIT C-5

SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED FOR THE YEAR ENDED DECEMBER 31, 2018

December 31, 2017	$ 19,581,439.78
Decreased by:
Budget Appropriation to Pay Bonds	$ 3,190,000.00
Paid by Open Space Trust Fund	650,000.00
Budget Appropriation to Pay NJEIT Loans Payable	15,102.83
	3,855,102.83
Balance December 31, 2018	$ 15,726,336.95

Balance December 31, 2017

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$1,967,227.30

1,386,092.46

Improvement Authorizations - Unfunded $ 3,353,319.76

Less: Unexpended Proceeds of Bond Anticipation Notes - Issued:

Ordinance 17-16 $ 531,206.34

Ordinance 09-17 854,886.12

ORDINANCE NUMBER IMPROVEMENT DESCRIPTION BALANCE DECEMBER 31, 2017 BALANCE DECEMBER 31, 2018 BALANCE DECEMBER 31, 2018 BOND ANTICIPATION NOTES DECEMBER 31, 2018 UNEXPENDED IMPROVEMENT AUTHORIZATIONS

AUTHORIZATIONS DECREASED DECEMBER 31, 2018 DECREASED DECEMBER 31, 2018 EXPENDITURES UNEXPENDED IMPROVEMENT AUTHORIZATIONS

17-16 DPW Equipment/Gas Boy - Cap Project $ 545,300.00 $ - - - $ 545,300.00 $ 545,300.00 - - $ - -

17-16 Misc. Public Works Projects/Repairs 66,500.00 - - - 66,500.00 66,500.00 - - - -

17-16 Justice Complex 109,250.00 - - - 109,250.00 109,250.00 - - - -

17-16 Police CAD/Vehicles 313,500.00 - - - 313,500.00 313,500.00 - - - -

17-16 Roads/Sidewalks/Drainage 950,000.00 - - - 950,000.00 950,000.00 - - - -

17-16 Section 20 Costs 297,682.50 - - - 297,682.50 297,450.00 - - 232.50 -

09-17 Roads/Sidewalks/Drainage 949,984.12 - - - 949,984.12 949,984.12 - - - -

09-17 DPW Projects & Repairs 584,735.92 - - - 584,735.92 584,735.92 - - - -

09-17 Assessor Vehicle 23,750.00 - - - 23,750.00 23,750.00 - - - -

09-17 Police Equipment & Vehicle 259,355.18 - - - 259,355.18 259,355.18 - - - -

09-17 Section 20 Costs 272,673.78 - - - 272,673.78 272,174.78 - - 499.00 -

18-18 SR CTR Mini-Bus - 25,432.36 - - 25,432.36 - - - 25,432.36 -

18-18 Police Vehicles - 128,571.24 - - 128,571.24 - 128,388.53 - 182.71 -

18-18 Engineering - 104,761.81 - - 104,761.81 - - - 104,761.81 -

18-18 Various Park Improvements - 47,619.01 - - 47,619.01 - - - 47,619.01 -

18-18 Various Building Improvements - 47,619.01 - - 47,619.01 - - - 47,619.01 -

18-18 DPW Roads/Claw - 66,666.67 - - 66,666.67 - 13,316.67 - 53,350.00 -

18-18 Section 20 Costs - 63,100.90 - - 63,100.90 - - - 63,100.90 -

19-18 Road/SW/Drainage - 1,300,000.00 - - 1,300,000.00 - - - 1,300,000.00 -

19-18 Section 20 Costs - 325,000.00 - - 325,000.00 - 570.00 - 324,430.00 -

Total $ 4,372,731.50 $ 2,108,771.00 - 6,481,502.50 $ 4,372,000.00 $ 142,275.20 - 1,967,227.30 - -

ANALYSIS OF BALANCE

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED FOR THE YEAR ENDED DECEMBER 31, 2018

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$3,840,000.00

IMPROVEMENT DESCRIPTION MATURITIES OF BONDS OUTSTANDING BALANCE INTEREST RATE ISSUED BALANCE DECEMBER 31, 2018

ORIGINAL AMOUNT OF ISSUE ORIGINAL DATE OF ISSUE DECEMBER 31, 2018

PAYMENT DATE PAYMENT AMOUNT DECEMBER 31, 2017 ISSUED PAID REFUNDED BALANCE DECEMBER 31, 2018

Open Space Bonds $ 5,918,000.00 12/01/2003 N/A N/A N/A $ 500,000.00 - 500,000.00 - -

General Improvements 16,102,000.00 12/01/2008 N/A N/A N/A 2,085,000.00 - 2,085,000.00 - -

Open Space Bonds 3,739,000.00 12/01/2008 N/A N/A N/A 130,000.00 - 130,000.00 - -

General Obligation - Series 2014 5,485,000.00 7/23/2014 6/1/2019 500,000.00 3.00% 4,335,000.00 - 500,000.00 - 3,835,000.00

6/1/2020 500,000.00 2.00%

6/1/2021 515,000.00 2.00%

6/1/2022 520,000.00 2.00%

6/1/2023 600,000.00 2.125%

6/1/2024 600,000.00 2.25%

6/1/2025 600,000.00 2.375%

Bonds - General - Series 2016 4,210,000.00 2/2/2016 12/1/2019 2,040,000.00 3.00% 4,165,000.00 - 5,000.00 - 4,160,000.00

12/1/2020 2,120,000.00 4.00%

General Bonds - Open Space - Series 2016 2,890,000.00 2/2/2016 12/1/2019 245,000.00 3.00% 2,830,000.00 - 20,000.00 - 2,810,000.00

12/1/2020 250,000.00 4.00%

12/1/2021 260,000.00 2.50%

12/1/2022 270,000.00 2.50%

12/1/2023 280,000.00 2.50%

12/1/2024 285,000.00 2.75%

12/1/2025 295,000.00 2.75%

12/1/2026 300,000.00 3.00%

12/1/2027 310,000.00 3.00%

12/1/2028 315,000.00 3.00%

General Obligation - Series 2016 5,858,000.00 11/30/2016 12/1/2019 700,000.00 3.00% 5,250,000.00 - 600,000.00 - 4,650,000.00

12/1/2020 650,000.00 3.00%

12/1/2021 1,100,000.00 4.00%

12/1/2022 1,100,000.00 2.125%

12/1/2023 1,100,000.00 2.25%

Total $ 19,295,000.00 $ - $ 3,840,000.00 $ - $ 15,455,000.00

Current Fund Budget Appropriation $ 3,190,000.00

Open Space Trust Appropriation 650,000.00

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF GENERAL SERIAL BONDS FOR THE YEAR ENDED DECEMBER 31, 2018

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ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	BALANCE DECEMBER 31, 2017		2018 AUTHORIZATIONS	RECLASS PRIOR YEAR ENCUMBRANCES	PAID OR CHARGED	RESERVE FOR ENCUMBRANCES	AUTHORIZATION CANCELLED	BALANCE DECEMBER 31, 2018
ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	FUNDED	UNFUNDED	2018 AUTHORIZATIONS	RECLASS PRIOR YEAR ENCUMBRANCES	PAID OR CHARGED	RESERVE FOR ENCUMBRANCES	AUTHORIZATION CANCELLED	FUNDED	UNFUNDED
09-07(iii)	Construction of Public Works Storage Building	$ 1,637.08	$-	$-	$-	$-	$-	$-	$ 1,637.08	$-
28-07A	Telecommunications & GPS Equipment	32,649.43	-	-	-	-	-	-	32,649.43	-
09-07(vi)	Improvements to Library & Municipal Facilities	24,828.24	-	-	-	-	-	-	24,828.24	-
29-08(i)	Various Road Improvements	-	-	-	-	(31,687.58)	-	-	31,687.58	-
29-08(ii)	Telephone/Data System Upgrade	63,120.62	-	-	-	31,687.58	-	-	31,433.04	-
19-09(ii)	Public Water Service Installation	81,039.70	-	-	-	-	-	-	81,039.70	-
19-09(iv)	Implementation of Recycling Center	7,718.54	-	-	-	-	7,308.71	-	409.83	-
19-09(vi)	Acquisition of Equipment for Public Works	18,685.78	-	-	-	-	13,683.78	-	5,002.00	-
10-09(vii)	Acquisition of Passenger Bus for Senior Center	4,861.73	-	-	-	-	-	-	4,861.73	-
25-10	Municipal Capital Improvements	104,902.58	-	-	-	-	-	-	104,902.58	-
25-10	Township Recycling Center	27,419.90	-	-	-	-	-	-	27,419.90	-
25-10	Technology Upgrades	11,287.93	-	-	3,390.00	3,390.00	-	-	11,287.93	-
25-10	Police Department Equipment	17,471.24	-	-	-	-	-	-	17,471.24	-
25-10	DPW Equipment	71,955.62	-	-	-	-	808.59	-	71,147.03	-
403R-10	DOT Municipal Aid 2011 - Patterson Road	4,732.20	-	-	-	4,337.20	-	395.00	-	-
03-12	Road Improvements	81,970.35	-	-	-	-	-	-	81,970.35	-
03-12	DPW Equipment	35,154.39	-	-	-	-	-	-	35,154.39	-
03-12	Ambulance	8,522.42	-	-	-	-	-	-	8,522.42	-
03-12	Non-Passenger Vehicles	11,263.48	-	-	-	-	-	-	11,263.48	-
18-13(ii)	Acquisition of Pool Equipment	26.15	-	-	-	-	-	-	26.15	-
18-13(iii)	Record Retention/Microfilming	127,810.27	-	-	-	-	-	-	127,810.27	-
18-13(vii)	Section 20 Costs	84,676.53	-	-	33,170.50	33,170.50	-	-	84,676.53	-
20-14(i)	Acquisition of DPW Equipment	128,785.66	-	-	22,021.51	82,021.51	68,661.00	-	124.66	-
20-14(iii)	Acquisition of Senior Center Bus	5,317.70	-	-	-	-	-	-	5,317.70	-
20-14(iv)	Acquisition of UCC non-passenger Vehicles	3,989.58	-	-	-	-	-	-	3,989.58	-
20-14	Section 20 Costs	180,489.50	-	-	-	-	-	-	180,489.50	-
21-15	DPW Equipment/Road Repair	4,317.91	-	-	66,516.13	65,863.63	652.50	-	4,317.91	-
21-15	Roads/Sidewalks/Drainage	-	-	-	133,786.61	133,786.61	-	-	-	-
21-15	Police Equipment	147,222.83	-	-	-	-	19,995.40	-	127,227.43	-
21-15	Various Park Improvements	34,029.17	-	-	-	20,754.92	-	-	13,274.25	-
21-15	Various Building Improvements	29,023.77	-	-	14,976.23	14,976.23	27,585.73	-	1,438.04	-
21-15	Municipal Court Equipment	38,029.06	-	-	-	-	-	-	38,029.06	-
21-15	Section 20 Costs	242,970.50	-	-	-	3,525.00	-	-	239,445.50	-

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

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ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	BALANCE DECEMBER 31, 2017		2018 AUTHORIZATIONS	RECLASS PRIOR YEAR ENCUMBRANCES	PAID OR CHARGED	RESERVE FOR ENCUMBRANCES	AUTHORIZATION CANCELLED	BALANCE DECEMBER 31, 2018
ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	FUNDED	UNFUNDED	2018 AUTHORIZATIONS	RECLASS PRIOR YEAR ENCUMBRANCES	PAID OR CHARGED	RESERVE FOR ENCUMBRANCES	AUTHORIZATION CANCELLED	FUNDED	UNFUNDED
17-16	DPW Equipment/Gas Boy - Cap Project	-	81,277.87	-	286,905.38	246,221.13	52,004.00	-	-	69,958.12
17-16	Misc. Public Works Projects/Repairs	-	20,000.00	-	50,000.00	26,236.00	28,332.00	-	-	15,432.00
17-16	Justice Complex	-	84,977.14	-	30,022.86	30,022.86	-	-	-	84,977.14
17-16	Police CAD/Vehicles	-	63,389.08	-	-	-	-	-	-	63,389.08
17-16	Roads/Sidewalks/Drainage	-	53,308.37	-	-	53,308.37	-	-	-	-
17-16	Section 20 Costs	10,276.50	297,682.50	-	5,391.00	5,391.00	-	-	10,276.50	297,682.50
09-17	Road/SW/Drainage	-	772,990.71	-	-	15,641.99	677,450.11	-	-	79,898.61
09-17	DPW Projects & Repairs	-	570,002.91	-	45,497.09	103,561.49	-	-	-	511,938.51
09-17	Assessor Vehicle	1,250.00	23,750.00	-	-	24,527.00	-	-	-	473.00
09-17	Police Equipment & Vehicle	-	-	-	273,000.00	273,000.00	-	-	-	-
09-17	Section 20 Costs	13,541.22	272,673.78	-	-	23,140.00	-	-	-	263,075.00
18-18	SR CTR Mini-Bus	-	-	26,704.00	-	-	-	-	1,271.64	25,432.36
18-18	Police Vehicles	-	-	135,000.00	-	-	134,817.29	-	-	182.71
18-18	Engineering	-	-	110,000.00	-	-	-	-	5,238.19	104,761.81
18-18	Various Park Improvements	-	-	50,000.00	-	-	-	-	2,380.99	47,619.01
18-18	Various Building Improvements	-	-	50,000.00	-	-	-	-	2,380.99	47,619.01
18-18	DPW Roads/Claw	-	-	70,000.00	-	-	16,650.00	-	-	53,350.00
18-18	Section 20 Costs	-	-	66,256.00	-	810.00	-	-	2,345.10	63,100.90
19-18	Road/SW/Drainage	-	-	1,300,000.00	-	-	-	-	-	1,300,000.00
19-18	Section 20 Costs	-	-	325,000.00	-	570.00	-	-	-	324,430.00
Total	$ 1,660,977.58	$ 2,240,052.36	$ 2,132,960.00	$ 964,677.31	$ 1,164,255.44	$ 1,047,949.11	$ 395.00	$ 1,432,747.94	$ 3,353,319.76

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 964,677.31

Increased by: Charged to Improvement Authorizations 1,047,949.11

Decreased by: Prior Year Encumbrance Canceled 964,677.31

Balance December 31, 2018 $ 1,047,949.11

EXHIBIT C-10

SCHEDULE OF CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $574.08

Increased by: 2018 Budget Appropriation 450,000.00

450,574.08 Decreased by:

Decreased by: Appropriated to Finance Improvement Authorizations 24,189.00

Balance December 31, 2018 $ 426,385.08

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR DEBT SERVICE - OPEN SPACE BONDS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 1,753,770.57
Decreased by:
Cash Disbursement	550,000.00
Balance December 31, 2018	$ 1,203,770.57
SCHEDULE OF RESERVE FOR DEBT SERVICE - OTHER FOR THE YEAR ENDED DECEMBER 31, 2018	EXHIBIT C-12
Balance December 31, 2017	$ 43,135.22
Increased by:
Premium from Bond Anticipation Notes & Bonds Issued	34,935.00
Balance December 31, 2018	$ 78,070.22

SCHEDULE OF RESERVE FOR FIRE DAMAGE - ANNEX BUILDING FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 3,226.03
Decreased by:
Cash Disbursement	8.42
Balance December 31, 2018	$ 3,217.61

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DESCRIPTION

2017 Fund Loan

2017 Trust Loan

DATE OF ISSUE ORIGINAL ISSUES MATURITIES OF LOAN OUTSTANDING BALANCE DECEMBER 31, 2017 BALANCE DECEMBER 31, 2018

DECEMBER 31, 2018 INTEREST RATE

DATE AMOUNT DECREASES

5/25/2017 $ 148,175.00 2/1/19-31 $ 3,367.61 N/A $ 141,439.78 $ 10,102.83 $ 131,336.95

8/1/19-31 6,735.22 N/A

5/25/2017 145,000.00 8/1/19-25 10,000.00 5.00% 145,000.00 5,000.00 140,000.00

8/1/26-29 10,000.00 3.00%

8/1/30-31 15,000.00 3.00%

Total $ 286,439.78 $ 15,102.83 $ 271,336.95

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF NJEIT LOAN PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

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ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	DATE OF ORIGINAL NOTE	DATE OF ISSUE	DATE OF MATURITY	INTEREST RATE	BALANCE DECEMBER 31, 2017	INCREASED	BALANCE DECEMBER 31, 2018
17-16	Acquisition, Construction, Repair & Installation of Various Capital Improvements	8/07/2018	8/07/2018	8/07/2019	2.75%	$-	$ 2,282,000.00	$ 2,282,000.00
09-17	Acquisition, Construction, Repair & Installation of Various Capital Improvements	8/07/2018	8/07/2018	8/07/2019	2.75%	$-	2,090,000.00	2,090,000.00
				Total		$-	$ 4,372,000.00	$ 4,372,000.00

TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF BOND ANTICIPATION NOTES FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON GENERAL CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED AT DECEMBER 31, 2018

ORDINANCE NUMBER	IMPROVEMENT DESCRIPTION	BALANCE DECEMBER 31, 2017	2018 AUTHORIZATIONS	BANS ISSUED	BALANCE DECEMBER 31, 2018
17-16	DPW Equipment/Gas Boy - Cap Project	$ 545,300.00	$ -	$ 545,300.00	$ -
17-16	Misc. Public Works Projects/Repairs	66,500.00	-	66,500.00	-
17-16	Justice Complex	109,250.00	-	109,250.00	-
17-16	Police CAD/Vehicles	313,500.00	-	313,500.00	-
17-16	Roads/Sidewalks/Drainage	950,000.00	-	950,000.00	-
17-16	Section 20 Costs	297,682.50	-	297,450.00	232.50
09-17	Road/Sidewalks/Drainage	949,984.12	-	949,984.12	-
09-17	DPW Projects & Repairs	584,735.92	-	584,735.92	-
09-17	Assessor Vehicle	23,750.00	-	23,750.00	-
09-17	Police Equipment & Vehicle	259,355.18	-	259,355.18	-
09-17	Section 20 Costs	272,673.78	-	272,174.78	499.00
18-18	SR CTR Mini-Bus	-	25,432.36	-	25,432.36
18-18	Police Vehicles	-	128,571.24	-	128,571.24
18-18	Engineering	-	104,761.81	-	104,761.81
18-18	Various Park Improvements	-	47,619.01	-	47,619.01
18-18	Various Building Improvements	-	47,619.01	-	47,619.01
18-18	DPW Roads/Claw	-	66,666.67	-	66,666.67
18-18	Section 20 Costs	-	63,100.90	-	63,100.90
19-18	Road/SW/Drainage	-	1,300,000.00	-	1,300,000.00
19-18	Section 20 Costs	-	325,000.00	-	325,000.00
	Total	$ 4,372,731.50	$ 2,108,771.00	$ 4,372,000.00	$ 2,109,502.50

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PUBLIC ASSISTANCE FUND

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TOWNSHIP OF JACKSON PUBLIC ASSISTANCE FUND SCHEDULE OF CASH FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 27,582.93
Increased by:
Interest Earned	207.64
Balance December 31, 2018	$ 27,790.57

EXHIBIT D-2

SCHEDULE OF RESERVE FOR PUBLIC ASSISTANCE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017	$ 27,582.93
Increased by:
Interest Earned	207.64
Balance December 31, 2018	$ 27,790.57

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GENERAL FIXED ASSETS

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TOWNSHIP OF JACKSON GENERAL FIXED ASSETS GROUP SCHEDULE OF INVESTMENTS IN GENERAL FIXED ASSETS FOR THE YEAR ENDED DECEMBER 31, 2018

	BALANCE DECEMBER 31, 2017	ADDITIONS	DELETIONS	BALANCE DECEMBER 31, 2018
Land	$ 56,970,100.00	$ -	$ 650,000.00	$ 56,320,100.00
Building & Building Improvements	49,798,905.00	-	-	49,798,905.00
Machinery & Equipment	15,316,240.00	1,058,336.00	2,078,541.00	14,296,035.00
Total	$ 122,085,245.00	$ 1,058,336.00	$ 2,728,541.00	$ 120,415,040.00

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TOWNSHIP OF JACKSON COUNTY OF OCEAN

PART II

LETTER OF COMMENTS AND RECOMMENDATIONS - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

*****

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TOWNSHIP OF JACKSON

PART II

SCHEDULE OF FINANCIAL STATEMENT FINDINGS - GOVERNMENT AUDITING STANDARDS FOR THE YEAR ENDED DECEMBER 31, 2018

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TOWNSHIP OF JACKSON SCHEDULE OF FINANCIAL STATEMENT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2018

This section identifies the significant deficiencies, material weaknesses and instances of noncompliance related to the basic financial statements that are required to be reported in accordance with Government Auditing Standards and with audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

Finding 2018-001

Criteria or specific requirement:

For sound financial reporting the appropriate internal control procedures for requisitions of purchase orders should be followed to ensure compliance with public contract law.

Condition:

The Township was inconsistent with following internal control procedures in place for obtaining quotes and obtaining the approval of requisitions for purchase orders before the receipt of a good or service.

Cause:

Management oversight at the applicable department level.

Effect or potential effect:

Weakening of internal control over financial reporting.

Recommendation:

It is recommended that all requisitions for purchase orders are approved by the appropriate parties and all quotes are received at the time of requisitioning process and that no order is placed for goods or services until a Purchase Order is printed and approved.

View of responsible official:

The responsible official agrees with this finding and will address the matter as part of their corrective action plan.

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TOWNSHIP OF JACKSON SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2018

This section identifies the status of prior year findings related to the financial statements, federal awards and state financial assistance that are required to be reported in accordance with Government Auditing Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance), and New Jersey OMB's Circular 15-08.

Financial Statement Findings

Finding No. 2017-001

Condition:

The Township was inconsistent with following internal control procedures in place for obtaining quotes and obtaining the approval of requisitions for purchase orders before the receipt of a good or service.

Current Status:

This finding has not been corrected. See Finding 2018-001

FEDERAL AWARDS

N/A – No Federal Single Audit in prior year.

STATE FINANCIAL ASSISTANCE

N/A – No State Single Audit in prior year.

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TOWNSHIP OF JACKSON

PART III

LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

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OFFICIALS IN OFFICE AND SURETY BONDS

The following officials were in office at December 31, 2018:

Name

Title

Michael Reina	Mayor
Robert Nixon	Council President
Barry Calogero	Council Vice President
Kenneth Bressi	Councilmember
Alex Sauickie III	Councilmember
Andrew Kern	Councilmember
Terence Wall	Administrator
Sharon Pinkava	Chief Financial Officer
Janice Kisty	Township Clerk/Search Officer
Daniel Sahin	Magistrate
Camille Elluzzi	Court Administrator
Gilmore & Monahan	Attorney

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Honorable Mayor and Members of the Township Council Township of Jackson County of Ocean Jackson, New Jersey

In accordance with requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, the following are the General Comments and Recommendations for the year ended December 31, 2018.

GENERAL COMMENTS:

Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)

N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by contract or agreement.

The bid threshold in accordance with N.J.S.A. 40A:11-4 was $40,000 for the year ended December 31, 2018.

It is pointed out that the governing body of the municipality has the responsibility of determining whether the expenditures in any category will exceed the statutory minimum within the fiscal year. Where question arises as to whether any contract or agreement might result in violation of the statute, the solicitor's opinion should be sought before a commitment is made.

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

Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” other than those where bids had been previously sought by public advertisement or where a resolution had been previously adopted under the provisions of N.J.S.A.40A:11-6.

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Collection of Interest on Delinquent Taxes and Assessments

N.J.S.54:4-67, provides the method for authorizing interest and the maximum rates to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent.

The governing body on January 2, 2018 adopted the following resolution authorizing interest to be charged on delinquent taxes:

NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non-payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first $1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of $1,500.00; and

BE IT FURTHER RESOLVED, by the Township Council of the Township of Council, that the Tax Collector shall allow that no interest will be charged on payments received and made by the tenth calendar day following the date upon which the same became payable; and

BE IT FURTHER RESOLVED, by the Township Council of the Township of Jackson, that the Tax Collector shall charge, in addition to the interest for delinquent taxes, as noted above, a penalty of six (6%) percent of the amount of the delinquency in taxes in excess of $10,000.00 to a taxpayer who fails to pay the delinquency prior to the end of the calendar year.

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

OTHER COMMENTS (FINDINGS):

Finding 2018-01* (Finding 2018-001 in the Schedule of Financial Statement Findings section)

The Township was inconsistent with following internal control procedures in place for obtaining quotes and obtaining the approval of requisitions for purchase orders before the receipt of a good or service.

RECOMMENDATIONS:

Finding 2018-01* (Finding 2018-001 in the Schedule of Financial Statement Findings section)

It is recommended that all requisitions for purchase orders are approved by the appropriate parties and all quotes are received at the time of requisitioning process and that no order is placed for goods or services until a Purchase Order is printed and approved.

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Appreciation

We express our appreciation for the assistance and courtesy extended to the members of the audit team.

Respectfully submitted,

HOLMAN FRENIA ALLISON, P. C.

Jerry W. Conaty

Jerry W. Conaty Certified Public Accountant Registered Municipal Accountant RMA No. 581

Toms River, New Jersey July 31, 2019

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