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Qwertyuiopasdfghjklzxcvbnmqw Qwertyuiopasdfghjklzxcvbnmqwertyu iopasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyuiopaCITY OF PATERSON NEW JERSEY REPORT OF AUDIT sdfghjklzxcvbnmqwertyuiopasdfghjklz FOR THE YEARS ENDED xcvbnmqwertyuiopasdfghjklzxcvbnmqJUNE 30, 2015 AND 2014 wertyu iopasdfghjklzxcvbnmqwertyuiopasdfg hjklasdfghjklzxcvbnmqwertyuiopasdfg c vbnmqwertyuio CITY OF PATERSON AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS JUNE 30, 2015 PAGE EXHIBIT TABLE SCHEDULE FINANCIAL SECTION Independent Auditor's Report ………………………………………………………… 1 Current Fund Comparative Balance Sheet - Regulatory Basis ………………………………… 5 ………… A Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis ………………………………… 7 ………… A-1 Statement of Revenues - Regulatory Basis ……………………………………… 9 ………… A-2 Analysis of Budget Revenues ………………………………………………… 14 …………… A-2a Analysis of Non-Budget Revenues ……………………………………………16 ………… A-2b Statement of Appropriations - Regulatory Basis ………………………………… 18 ………… A-3 Analysis of Modified Budget and Paid or Charged ………………………… 31 ………… A-3a Trust Funds Comparative Balance Sheet - Regulatory Basis ………………………………… 32 ………… B Comparative Statement of Changes in Fund Balance - Regulatory Basis ……… 34 ………… B-1 General Capital Fund Comparative Balance Sheet - Regulatory Basis ………………………………… 35 ………… C Comparative Statement of Changes in Fund Balance - Regulatory Basis ……… 36 ………… C-1 General Fixed Assets Comparative Balance Sheet - Regulatory Basis ………………………………… 37 ………… D Notes to Financial Statements ………………………………………………………… 38 SUPPLEMENTARY DATA SECTION Current Fund Schedule of: Cash - Treasurer ………………………………………………………………105 ………… A-4 Cash - Collector ……………………………………………………………… 107 ………… A-5 Change Fund ………………………………………………………………… 107 ………… A-6 Taxes Receivable and Analysis of Property Tax Levy ……………………… 108 ……………A-7 Due from State of New Jersey for Senior Citizens and Veterans Deductions …………………………………109 ……………A-8 Tax Title Liens Receivable ……………………………………………………111 ……………A-9 Sewer Charges Receivable ……………………………………………………112 ……………A-10 Sewer Liens Receivable ………………………………………………………113 ……………A-11 Demolition Liens Receivable …………………………………………………113 ……………A-12 Property Acquired for Taxes at Assessed Valuation ………………………… 114 ……………A-13 Sales Contracts Receivable - Property Acquired for Taxes ………………… 114 ……………A-14 Revenue Accounts Receivable ……………………………………………… 115 ……………A-15 Deferred Charges …………………………………………………………… 120 ……………A-16 Interfunds Receivable (Payable) ………………………………………………121 ……………A-17 Appropriation Reserves ……………………………………………………… 122 ……………A-18 Requisitions and Accounts Payable ………………………………………… 129 ……………A-19 Prepaid Taxes …………………………………………………………………129 ……………A-20 Tax Overpayments …………………………………………………………… 130 ……………A-21 Other Reserves ……………………………………………………………… 131 ……………A-22 Prepaid Sewers ……………………………………………………………… 132 ……………A-23 Sewer Overpayments ………………………………………………………… 132 ……………A-24 Local District School Taxes Payable ………………………………………… 133 ……………A-25 County Taxes Payable ……………………………………………………… 134 ……………A-26 Special Emergency Notes Payable ……………………………………………135 ……………A-27 i CITY OF PATERSON AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS JUNE 30, 2015 PAGE EXHIBIT TABLE SCHEDULE SUPPLEMENTARY DATA SECTION (continued) Current Fund - continued Schedule of: Reserve for Accrued Sick and Vacation Time ……………………………… 137 ……………A-28 Reserve for Deposits on Sale of Property Acquired for Taxes ……………… 137 ……………A-29 Reserve for State Library Aid …………………………………………………138 ……………A-30 Reserve for Library Fines and Donations …………………………………… 138 ……………A-31 Reserve for ABC License Surcharge ………………………………………… 139 ……………A-32 Reserve for State Tax Appeals ……………………………………………… 139 ……………A-33 Reserve for Revaluation ………………………………………………………139 ……………A-34 Federal and State Grants Fund Schedule of: Federal and State Grants Receivable ………………………………………… 140 ……………A-35 Interfunds Payable ……………………………………..…………………… 147 ……………A-36 Reserve for Federal and State Grants - Appropriated …………………………148 ……………A-37 Reserve for Federal and State Grants - Unappropriated ………………………155 ……………A-38 Reserve for Grant Overpayments …………………………………………… 155 ……………A-39 Trust Funds Schedule of: Receipts and Disbursements - Treasurer …………………………………… 156 ……………B-2 Taxes Receivable - Special Improvement Districts ………………………… 157 ……………B-3 Due to Special Improvement Districts ……………………………………… 157 ……………B-4 Grants Receivable …………………………………………………………… 158 ……………B-5 Due to State of New Jersey - Animal Control Registration Fees …………… 159 ……………B-6 Reserve for Off-Duty Police Officers …………………………………………159 ……………B-7 Reserve for Administration Off-Duty Police Officers ……………………… 160 ……………B-8 Due from Municipal Utility Authority ……………………………………… 160 ……………B-9 Reserve for Municipal Utility Authority Receivable …………………………160 ……………B-10 Reserve for Animal Control Expenditures ……………………………………161 ……………B-11 Redevelopment / CDBG Held Property ………………………………………161 ……………B-12 Reserve for Redevelopment / CDBG Held Property ………………………… 161 ……………B-13 Reserve for Parking Offense Adjudication Act ……………………………… 162 ……………B-14 Reserve for Weights and Measures ………………………………………… 162 ……………B-15 Reserve for Public Defender Fees …………………………………………… 162 ……………B-16 Reserve for Other Deposits ……………………………………………………163 ……………B-17 Tax Overpayments - Special Improvement Districts ………………………… 164 ……………B-18 Tax Title Liens Receivable - Special Improvement District ………………… 164 ……………B-19 Prepaid Revenue - Special Improvement Districts ……………………………165 ……………B-20 Reserve for Taxes Receivable - Special Improvement Districts ………………165 ……………B-21 Reserve for Payroll Agency ………………………………………………… 166 ……………B-22 Due to Current Fund ………………………………………………………… 166 ……………B-23 Reserve for Various Grants ……………………………………………………167 ……………B-24 General Capital Fund Schedule of Cash - Treasurer …………………………………………………… 168 ……………C-2 Analysis of General Capital Cash and Investments……………………………… 169 ……………C-3 Schedule of: Grant Funds Receivable ………………………………………………………171 ……………C-4 Deferred Charges to be Raised by Future Taxation - Funded ……………… 172 ……………C-5 Deferred Charges to be Raised by Future Taxation - Unfunded …………… 173 ……………C-6 Analysis of Ending Balance Deferred Charges To Future Taxation - Unfunded …………………………………………174 ……………C-6a ii CITY OF PATERSON AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS JUNE 30, 2015 PAGE EXHIBIT TABLE SCHEDULE SUPPLEMENTARY DATA SECTION (continued) General Capital Fund - continued Bond Sale Proceeds Due from New Jersey Environmental Infrastructure Trust Fund ………………………………… 175 ……………C-7 Due from Current Fund ……………………………………………………… 175 ……………C-8 Improvement Authorizations ………………………………………………… 176 ……………C-9 General Serial Bonds ………………………………………………………… 178 ……………C-10 Environmental Infrastructure Loan Payable ………………………………… 180 ……………C-11 Bond Anticipation Notes Payable …………………………………………… 185 ……………C-12 Green Acres Trust Loan Payable …………………………………………… 186 ……………C-13 Capital Improvement Fund ……………………………………………………189 ……………C-14 Bonds and Notes Authorized but not Issued ………………………………… 190 ……………C-15 General Fixed Assets Schedule of Changes in Fixed Assets by Class ……………………………………191 ……………D-1 Schedule of Reserve for Fixed Assets …………………………………………… 191 ……………D-2 STATISTICAL SECTION Tables: Comparative Statement of Operations and Changes in Fund Balance - Current Fund …………………………………… 192 ………………………. 1 Tax Rate and Apportionment of Tax Rate ……………………………………… 193 ………………………. 2 Delinquent Taxes and Tax Title Liens …………………………………………… 193 ………………………. 3 Tax Levies and Collections ……………………………………………………… 194 ………………………. 4 Property Acquired by Tax Title Lien Liquidation ……………………………… 194 ………………………. 5 Percentage of Net Assessed Value to Estimated Full Cash Valuation ……………194 ………………………. 6 Officials in Office …………………………………………………………………… 195 ADDITIONAL INFORMATION RELATING TO INTERNAL CONTROL AND COMPLIANCE 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 ……197 Independent Auditor's Report on Compliance for Each Major Federal and State Program and on Internal Control Over Compliance Required by OMB Circular A-133 and New Jersey OMB Circular 15-08 ………………… 200 Schedule of: Expenditures of Federal Awards ………………………………………………… 203 ……………………………………………………… 1 Expenditures of State Financial Assistance ……………………………………… 210 ……………………………………………………… 2 Expenditures of Other Financial Assistance ………………………………………217 ……………………………………………………… 3 Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance ……………………………………………………220 Schedule of Findings and Questioned Costs: Section 1 - Summary of Auditors' Results ……………………………………… 223 Section 2 - Schedule of Financial Statement Findings ……………………………225 Section 3 - Schedule of Federal Awards and State Financial Assistance - Findings and Questioned Costs ……………………………………………… 226 Summary Schedule of Prior Year Audit Findings and Questioned Costs as Prepared by Management …………………………………………………… 227 General Comments …………………………………………………………………… 230 Comments and Recommendations …………………………………………………… 234 iii qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer CITY OF PATERSON tyuiopasdfghjklzxcvbnmqwertyuiopasREPORT OF AUDIT FY 2015 dfghjklzxcvbnmqwertyuiopasdfghjklzxFINANCIAL SECTION cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxc vbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty
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