City of Jersey City New Jersey Audit of Financial
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CITY OF JERSEY CITY NEW JERSEY AUDIT OF FINANCIAL STATEMENTS AND FEDERAL AND STATE GRANT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 2011 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2010 WITH REPORTS OF INDEPENDENT AUDITORS AND LETTERS OF COMMENTS AND RECOMMENDATIONS CITY OF JERSEY CITY AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS DECEMBER 31, 2011 PAGE EXHIBIT TABLE SCHEDULE FINANCIAL SECTION Report of Independent Auditors 1 - 3 Current Fund Comparative Balance Sheet - Regulatory Basis 4 - 5 A Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis 6 - 7 A-1 Statement of Revenues - Regulatory Basis 8 - 10 A-2 Statement of Revenues - Analysis of Budget Revenues - Regulatory Basis 11 A-2a Statement of Revenues - Analysis of Non-Budget Revenues - Regulatory Basis 12 - 13 A-2b Statement of Appropriations - Regulatory Basis 14 - 25 A-3 Trust Funds Comparative Balance Sheet - Regulatory Basis 26 - 29 B General Capital Fund Comparative Balance Sheet - Regulatory Basis 30 C Statement of Fund Balance - Regulatory Basis 31 C-1 General Fixed Assets Comparative Balance Sheet - Regulatory Basis 32 D Notes to Financial Statements 33 - 92 SUPPLEMENTARY DATA SECTION Current Fund Schedule of: Cash - Treasurer 93 - 94 A-4 Petty Cash 95 A-5 Change Fund 96 A-6 Taxes Receivable and Analysis of Property Tax Levy 97 A-7 Due from State of New Jersey for Senior Citizens' and Veterans' Deductions 98 A-8 Tax Title Liens Receivable 99 A-9 Property Acquired for Taxes at Assessed Valuation 99 A-10 Revenue Accounts Receivable 100 - 101 A-11 Due from JMCUA - Franchise Extension Fees 102 A-12 Lot Cleaning Charges and Liens Receivable 102 A-13 Sales Contracts Receivable - Property Acquired for Taxes 103 A-14 Security Board Receivable 103 A-15 Prepaid Debt Service 104 A-16 Deferred Charges - Special Emergency Authorization 104 A-17 Interfunds Receivable / (Payable) 105 A-18 Transition Year Appropriation Reserves 106 - 113 A-19 Reserve for Encumbrances 114 A-20 Contracts Payable 115 A-21 Accounts Payable 115 A-22 Prepaid Taxes 116 A-23 i CITY OF JERSEY CITY AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS DECEMBER 31, 2011 PAGE EXHIBIT TABLE SCHEDULE SUPPLEMENTARY DATA SECTION (continued) Current Fund Schedule of: Tax Overpayments 116 A-24 Prepaid Payments in Lieu of Taxes 117 A-25 Local District School Taxes Payable 117 A-26 County Taxes Payable 118 A-27 Pilot Fees Due to County 118 A-28 Due to Special Improvement Districts 119 A-29 Surcharges Due to State of New Jersey 120 A-30 Reserve for Deposits on Sale of Property Acquired for Taxes 121 A-31 Other Reserves 122 A-32 Reserve for Arbitrage Rebate 123 A-33 Emergency Notes Payable 124 A-34 Trust Funds Schedule of: Cash and Cash Equivalents - Assessment Fund 125 B-1 Cash and Cash Equivalents - Animal Control Fund 125 B-1A Cash and Cash Equivalents - Other Trust Fund 126 B-1B Cash and Cash Equivalents - Insurance Fund 126 B-1C Cash and Cash Equivalents - Payroll Clearing 127 B-1D Cash and Cash Equivalents - Unemployment Insurance Trust 127 B-1E Cash and Cash Equivalents - Law Enforcement Trust Fund 128 B-1F Cash and Cash Equivalents - Community Development Block Grant 128 B-1G Cash and Cash Equivalents - Home Investments Partnership Program 129 B-1H Cash and Cash Equivalents - Evertrust 129 B-1I Cash and Cash Equivalents - Housing Opportunities for Persons with AIDS 130 B-1J Cash and Cash Equivalents - Martin Luther King Trust Fund 130 B-1K Cash and Cash Equivalents - State and Federal Grants Fund 131 B-1L Fund Balance - Assessment Fund 132 B-2 Reserve for Encumbrances - Other Trust Funds 132 B-3 Reserves and Special Deposits - Other Trust Funds 133 - 134 B-4 Vouchers Payable - Other Trust Funds 135 B-5 Interfunds Receivable / (Payable) - Other Trust Funds 135 B-6 Vouchers Payable - Insurance Fund 136 B-7 Miscellaneous Reserves - Insurance Fund 136 B-8 Due to Library - Payroll Clearing Fund 13 B-9 Interfunds Receivable - Payroll Clearing Fund 138 B-10 Reserve for Payroll Deductions - Payroll Clearing Fund 139 B-11 Vouchers Payable - Unemployment Insurance Trust 139 B-12 Reserve for Expenditures - Unemployment Insurance Trust 140 B-13 Vouchers Payable - Law Enforcement Trust Fund 140 B-14 Reserve for Expenditures - Law Enforcement Trust Fund 141 B-15 Reserve for Federal Forfeitures - Law Enforcement Trust Fund 142 B-16 Reserve for Encumbrances - Law Enforcement Trust Fund 143 B-17 Federal Grants Receivable - Community Development Block Grant 143 B-18 Interfunds Payable - Community Development Block Grant 144 B-19 ii CITY OF JERSEY CITY AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS DECEMBER 31, 2011 PAGE EXHIBIT TABLE SCHEDULE SUPPLEMENTARY DATA SECTION (continued) Trust Funds Schedule of: Allotment Receivable - Community Development Block Grant 144 B-20 Vouchers Payable - Community Development Block Grant 145 B-21 Reserve for Encumbrances - Community Development Block Grant 145 B-22 Reserve for Expenditures - Community Development Block Grant 146 B-23 Federal Grants Receivable - Home Investments Partnership Program 146 B-24 Interfunds Payable - Home Investments Partnership Program 147 B-25 Reserve for Other - Home Investments Partnership Program 147 B-26 Vouchers Payable - Home Investments Partnership Program 148 B-27 Reserve for Program Income - Home Investments Partnership Program 148 B-28 Reserve for Encumbrances - Home Investments Partnership Program 149 B-29 Reserve for Expenditures - Home Investments Partnership Program 149 B-30 Reserve for Encumbrances - Evertrust 150 B-31 Reserve for Expenditures - Evertrust 150 B-32 Federal Grants Receivable - Housing Opportunities for Persons with AIDS 150 B-33 Interfunds Payable - Housing Opportunities for Persons with AIDS 151 B-34 Vouchers Payable - Housing Opportunities for Persons with AIDS 151 B-35 Reserve for Encumbrances - Housing Opportunities for Persons with AIDS 152 B-36 Reserve for Expenditures - Housing Opportunities for Persons with AIDS 152 B-37 Other Reserves - Housing Opportunities for Persons with AIDS 153 B-38 Federal Grants Receivable - Martin Luther King Trust Fund 153 B-39 Reserve for Expenditures - Martin Luther King Trust Fund 153 B-40 State and Federal Grants Receivable - State and Federal Grants Fund 154 - 162 B-41 Due from Jersey City MUA - State and Federal Grants Fund 163 B-42 Due to Grantor - State and Federal Grants Fund 163 B-43 Interfunds Receivable / (Payable) - State and Federal Grants Fund 164 B-44 Reserve for Encumbrances - State and Federal Grants Fund 165 B-45 Reserve for Other - State and Federal Grants Fund 166 B-46 Reserve for State and Federal Grants - Appropriated - State and Federal Grants Fund 167 - 177 B-47 Reserve for State and Federal Grants - Unappropriated - State and Federal Grants Fund 178 B-47a Vouchers Payable - Animal Control Fund 179 B-48 Due to State of New Jersey - Animal Control Fund 179 B-49 Reserve for Expenditures - Animal Control Fund 180 B-50 Interfunds Payable - Animal Control Fund 181 B-51 Reserve for Encumbrances - Animal Control Fund 181 B-52 Capital Fund Schedule of Cash - Treasurer 182 C-2 Analysis of Cash and Cash Equivalents 183 - 189 C-3 Analysis of Cash and Cash Equivalents Ending Balance 190 - 196 C-3a Schedule of: Deferred Charges to Future Taxation - Funded 197 C-4 iii CITY OF JERSEY CITY AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS DECEMBER 31, 2011 PAGE EXHIBIT TABLE SCHEDULE SUPPLEMENTARY DATA SECTION (continued) Capital Fund Schedule of: Deferred Charges to Future Taxation - Unfunded 198 - 199 C-5 Deferred Charges to Future Water Rents 200 - 201 C-6 Due from State and Federal Government 202 C-7 Due from Municipal Utilities Authority 203 C-8 School Building Property 203 C-9 Due (To) / From Current Fund 204 C-10 Improvement Authorizations 205 - 211 C-11 School Serial Bonds 212 - 213 C-12 General Serial and Term Bonds 214 - 221 C-13 Pension Refunding Bonds 222 - 223 C-14 Water Serial Bonds 224 - 226 C-15 Hudson County Improvement Authority Pooled Loan Payable 227 C-16 Green Trust Loan Payable 228 - 236 C-17 Bond Anticipation Notes Payable 237 C-18 Tax Refunding Notes Payable 238 C-19 Capital Improvement Fund 239 C-20 Miscellaneous Reserves 240 - 241 C-21 Bonds and Notes Authorized but not Issued 242 - 244 C-22 General Fixed Assets Schedule of Changes in Fixed Assets by Class 245 D-1 Schedule of Reserve for Fixed Assets 245 D-2 ADDITIONAL INFORMATION RELATING TO INTERNAL CONTROL AND COMPLIANCE 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 246 - 247 Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on OMB Circular A-133 and New Jersey OMB Circular 04-04 248 - 250 Schedule of: Expenditures of Federal Awards 251 - 255 1 Expenditures of State Financial Assistance 256 - 260 2 Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance 261 - 262 Schedule of Findings and Questioned Costs: Section 1 - Summary of Auditors' Results 263 - 264 Section 2 - Summary of Financial Statement Findings 265 - 267 Section 3 - Schedule of Federal Awards and State Financial Assistance - Findings and Questioned Costs 268 - 269 Summary Schedule of Prior Year Audit Findings and Questioned Costs as Prepared by Management 270 iv CITY OF JERSEY CITY AUDIT OF FINANCIAL STATEMENTS TABLE OF CONTENTS DECEMBER 31, 2011 PAGE EXHIBIT TABLE SCHEDULE STATISTICAL SECTION Tables: Five - Year History of Governmental Expenditures 271 1 Five - Year History