BOROUGH OF BERLIN COUNTY OF CAMDEN REPORT OF AUDIT FOR THE YEAR 2017

COUNTY OF CAMDEN REPORT OF AUDIT FOR THE YEAR 2017

16800 TABLE OF CONTENTS Exhibit No. Page No. PART I Independent Auditor's Report 2 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 5 CURRENT FUND A Statements of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis 7 A-1 Statements of Operations and Changes in Fund Balance - Regulatory Basis 9 A-2 Statement of Revenues - Regulatory Basis 10 A-3 Statement of Expenditures - Regulatory Basis 12 TRUST FUND B Statements of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis 18 B-1 Trust - Municipal Open Space Fund - Statements of Operations and Changes in Reserve for Future Use - Regulatory Basis 20 B-2 Trust - Municipal Open Space Fund - Statement of Revenues - Regulatory Basis 21 B-3 Trust - Municipal Open Space Fund - Statement of Expenditures - Regulatory Basis 22 GENERAL CAPITAL FUND C Statements of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis 23 WATER UTILITY FUND D Statements of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis 24 D-1 Water Utility Operating Fund - Statements of Operations and Changes in Operating Fund Balance - Regulatory Basis 26 D-2 Water Utility Operating Fund - Statement of Revenues - Regulatory Basis 27 D-3 Water Utility Operating Fund - Statement of Expenditures - Regulatory Basis 28 i

16800 TABLE OF CONTENTS (CONT'D) Exhibit No. Page No. SEWER UTILITY FUND E Statements of Assets, Liabilities, Reserves and Fund Balance - Regulatory Basis 29 E-1 Statements of Operations and Changes in Operating Fund Balance - Regulatory Basis 30 E-2 Statement of Revenues - Regulatory Basis 31 E-3 Statement of Expenditures - Regulatory Basis 32 FIXED ASSET ACCOUNT GROUP F Statement of General Fixed Asset Account Group - Regulatory Basis 33 Notes to Financial Statements 34 SUPPLEMENTAL EXHIBITS CURRENT FUND SA-1 Statement of Current Cash Per N.J.S. 40A:5-5 - Chief Financial Officer 71 SA-2 Statement of Current Cash Per N.J.S. 40A:5-5 - Collector 72 SA-3 Schedule of Change Funds 72 SA-4 Statement of Taxes Receivable and Analysis of Property Tax Levy 73 SA-5 Statement of Revenue Accounts Receivable 74 SA-6 Statement of Due to State of New Jersey - Veterans and Senior Citizens Deductions 75 SA-7 Statement of 2016 Appropriation Reserves 76 SA-8 Statement of Due to State of New Jersey - State Training Fees 78 SA-9 Statement of Tax Title Liens Receivable 78 SA-10 Statement of Prepaid Taxes 79 SA-11 Statement of Tax Overpayments 79 SA-12 Statement of Due County for Added and Omitted Taxes 80 SA-13 Statement of County Taxes Payable 80 SA-14 Statement of Reserve for Encumbrances 80 SA-15 Statement of Local District School Tax 81 SA-16 Statement of Due to Municipal Open Space Fund 81 SA-17 Statement of Regional High School Tax 82 SA-18 Statement of Deferred Charges N.J.S. 40A:4-55 - Special Emergency Authorizations 83 SA-19 Statement of Reserve for Preparation of Master Plan 83 SA-20 SA-21 SA-22 Federal and State Grant Fund - Statement of Federal and State Grants Receivable 84 Federal and State Grant Fund - Statement of Reserve for Federal and State Grants - Unappropriated 85 Federal and State Grant Fund - Statement of Reserve for Federal and State Grants--Appropriated 86 ii

16800 TABLE OF CONTENTS (CONT'D) Exhibit No. Page No. SUPPLEMENTAL EXHIBITS TRUST FUND SB-1 Statement of Trust Cash Per N.J.S. 40A:5-5 - Chief Financial Officer 88 SB-2 Trust - Other Fund - Statement of Trust Other Cash Per N.J.S. 40A:5-5 - Collector 89 SB-3 Trust - Other Fund - Statement of Reserve for Animal Control Expenditures 89 SB-4 Trust - Other Fund - Statement of Due from Camden County - Community Development Block Grant 90 SB-5 Trust - Other Fund - Statement of Due from Camden County - Municipal Drug Alliance 90 SB-6 Trust - Other Fund - Statement of Due to Current Fund 91 SB-7 Trust - Other Fund - Statement of Trust Other Reserves 92 SB-8 Animal Control Trust Fund - Statement of Due To State of New Jersey 93 GENERAL CAPITAL FUND SC-1 Statement of General Capital Cash Per N.J.S.40A:5-5 - Chief Financial Officer 95 SC-2 Statement of General Capital Cash 96 SC-3 Statement of Deferred Charges to Future Taxation - Funded 97 SC-4 Statement of Deferred Charges to Future Taxation - Unfunded 98 SC-5 Statement of Capital Improvement Fund 99 SC-6 Statement of Improvement Authorizations 100 SC-7 Statement of Contracts Payable 101 SC-8 Statement of Due from Current Fund 101 SC-9 Statement of General Serial Bonds 102 SC-10 Statement of Bond Anticipation Notes 103 SC-11 Statement of Green Acres Loan 104 SC-12 Statement of Bonds and Notes Authorized But Not Issued 105 iii

16800 Exhibit No. TABLE OF CONTENTS (CONT'D) SUPPLEMENTAL EXHIBITS WATER UTILITY FUND Page No. SD-1 Statement of Water Utility Cash Per N.J.S.40A:5-5 - Chief Financial Officer 107 SD-2 Water Utility Operating Fund - Statement of Water Utility Operating Cash Per N.J.S.40A:5-5 - Collector 107 SD-3 Water Utility Capital Fund - Analysis of Water Capital Cash 108 SD-4 Water Utility Operating Fund - Statement of Water Rents Receivable 109 SD-5 Water Utility Operating Fund - Statement of Fire Hydrants and Sprinkler Rents Receivable 109 SD-6 Water Utility Operating Fund - Statement of Water Overpayments 110 SD-7 Water Utility Operating Fund - Statement of Appropriation Reserves 110 SD-8 Water Utility Capital Fund - Statement of Fixed Capital Authorized and Uncompleted 111 SD-9 Water Utility Capital Fund - Statement of Fixed Capital 112 SD-10 Water Utility Operating Fund - Statement of Accrued Interest on Bonds, Loans and Notes and Analysis of Balance 113 SD-11 Water Utility Capital Fund - Statement of Improvement Authorizations 114 SD-12 Water Utility Capital Fund - Statement of Reserve for Amortization 115 SD-13 Water Utility Capital Fund - Statement of Deferred Reserve for Amortization 115 SD-14 Water Utility Capital Fund - Statement of Water Serial Bonds 116 SD-15 Water Utility Capital Fund - Statement of New Jersey Environmental Infrastructure Trust Loan Payable 117 SD-16 Water Utility Capital Fund - Statement of Water Bond Anticipation Notes 118 SD-17 Water Utility Capital Fund - Statement of Water Bond and Notes Authorized but not Issued 119 SEWER UTILITY FUND SE-1 Statement of Sewer Utility Cash Per N.J.S. 40A:5-5 - Chief Financial Officer 121 SE-2 Sewer Utility Operating Fund - Statement of Sewer Utility Operating Cash Per N.J.S. 40A:5-5 - Collector 121 SE-3 Sewer Utility Capital Fund - Analysis of Sewer Utility Capital Cash 122 SE-4 Sewer Utility Operating Fund - Statement of Sewer Rents Receivable 123 SE-5 Sewer Utility Operating Fund - Statement of Appropriation Reserves 123 SE-6 Sewer Utility Capital Fund - Statement of Fixed Capital 124 SE-7 Sewer Utility Capital Fund - Statement of Fixed Capital Authorized and Uncompleted 125 SE-8 Statement of Accrued Interest on Bonds 126 SE-9 Sewer Utility Capital Fund - Statement of Improvement Authorizations 127 SE-10 Sewer Utility Capital Fund - Statement of Reserve for Amortization 128 SE-11 Sewer Utility Operating Fund - Statement of Sewer Overpayments 128 SE-12 Sewer Utility Capital Fund - Statement of Deferred Reserve for Amortization 128 SE-13 Sewer Utility Capital Fund - Statement of Sewer Serial Bonds 129 SE-14 Sewer Utility Capital Fund - Statement of Bond Anticipation Notes 129 SE-15 Sewer Utility Capital Fund - Statement of Sewer Bonds and Notes Authorized But Not Issued 130 iv

16800 TABLE OF CONTENTS (CONT'D) Exhibit No. Page No. PART 2 Schedule of Findings and Recommendations 132 Summary Schedule of Prior Year Audit Findings and Recommendations as Prepared by Management 133 OFFICIALS IN OFFICE AND SURETY BONDS 134 APPRECIATION 135 v

PART 1 REPORT OF AUDIT OF FINANCIAL STATEMENTS FOR THE YEAR 2017

INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the Borough Council Borough of Berlin Berlin, New Jersey 08009 Report on the Financial Statements We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory basis of the various funds of the Borough of Berlin, in the County of Camden, State of New Jersey, as of December 31, 2017 and 2016, and the related statements of operations and changes in fund balance - regulatory basis for the years then ended, and the related statement of revenues - regulatory basis, statement of expenditures - regulatory basis, and statement of general fixed asset group of accounts - regulatory basis for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the Borough 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 the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of New Jersey; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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; 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 as 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 Borough 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 Borough 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. 2

16800 Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America As described in note 1 to the financial statements, the financial statements are prepared by the Borough on the basis of the financial reporting provisions 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 Accounting Principles Generally Accepted in the United States of America 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 Borough of Berlin, in the County of Camden, State of New Jersey, as of December 31, 2017 and 2016, or the results of its operations and changes in fund balance for the years then ended. Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to previously present fairly, in all material respects, the assets, liabilities, reserves and fund balance - regulatory basis of the various funds of the Borough of Berlin, in the County of Camden, State of New Jersey, as of December 31, 2017 and 2016, and the results of its operations and changes in fund balance - regulatory basis of such funds for the years then ended, and the revenues - regulatory basis and expenditures - regulatory basis of the various funds, and general fixed asset group of accounts - regulatory basis, for the year ended December 31, 2017, 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. Other Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Borough s basic financial statements. The supplemental statements and schedules presented for the various funds, as listed in the table of contents, 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 are not a required part of the basic financial statements. The supplemental statements and schedules presented for the various funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental statements and schedules described in the previous paragraph are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3

16800 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2018 on our consideration of the Borough of Berlin, in the County of Camden, State of New Jersey, 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 solely 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 effectiveness of the Borough of Berlin s 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 Borough of Berlin s internal control over financial reporting and compliance. Respectfully submitted, BOWMAN & COMPANY LLP Certified Public Accountants & Consultants Voorhees, New Jersey June 13, 2018 Daniel M. DiGangi Certified Public Accountant Registered Municipal Accountant 4

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 INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the Borough Council Borough of Berlin Berlin, New Jersey 08009 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 the audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, the financial statements prepared on a regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, of the Borough of Berlin, in the County of Camden, State of New Jersey, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the Borough s basic financial statements, and have issued our report thereon dated June 13, 2018. That report indicated that the Borough of Berlin's financial statements were not prepared in accordance with accounting principles generally accepted in the United States of America, but were prepared on a 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 Borough of Berlin'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 Borough of Berlin's internal control. Accordingly, we do not express an opinion on the effectiveness of the Borough of Berlin'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. However, material weaknesses may exist that have not been identified. 5

16800 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Borough of Berlin'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 no 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. 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 entity 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 Borough s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Respectfully submitted, BOWMAN & COMPANY LLP Certified Public Accountants & Consultants Voorhees, New Jersey June 13, 2018 Daniel M. DiGangi Certified Public Accountant Registered Municipal Accountant 6

16800 Exhibit A CURRENT FUND Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 ASSETS Ref. Dec. 31, 2017 Dec. 31, 2016 Regular Fund: Cash SA-1 $ 3,533,663.42 $ 2,703,006.18 Cash--Change Funds SA-3 600.00 600.00 3,534,263.42 2,703,606.18 Receivables and Other Assets with Full Reserves: Delinquent Property Taxes Receivable SA-4 305,241.24 362,685.03 Tax Title Liens Receivable SA-9 16,915.37 Revenue Accounts Receivable SA-5 53,036.93 38,344.35 Due from Federal and State Grant Fund A 125,910.33 Due from Water Utility Operating Fund D 1,197.76 Due from Sewer Utility Operating Fund E 1,197.76 Due from Trust Other Fund SB-6 4,275.14 3,927.56 379,468.68 533,262.79 Deferred Charges: Special Emergency Authorizations SA-18 68,000.00 85,000.00 3,981,732.10 3,321,868.97 Federal and State Grant Fund: Cash SA-1 200,624.81 Federal and State Grants Receivable SA-20 192,031.65 244,375.00 392,656.46 244,375.00 $ 4,374,388.56 $ 3,566,243.97 (Continued) 7

16800 Exhibit A CURRENT FUND Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 LIABILITIES, RESERVES AND FUND BALANCE Ref. Dec. 31, 2017 Dec. 31, 2016 Regular Fund: Liabilities: Appropriation Reserves A-3;SA-7 $ 354,480.38 $ 287,804.34 Reserve for Encumbrances SA-14 96,776.44 97,921.57 Due to State of New Jersey: Senior Citizens and Veterans Deductions SA-6 27,427.08 24,071.62 State Training Fees SA-8 2,569.00 2,669.00 Prepaid Taxes SA-10 851,360.83 244,433.30 Tax Overpayments SA-11 1,635.42 5,432.40 Reserve for Preparation of Master Plan SA-19 47,006.63 71,533.00 County Taxes Payable SA-13 91,528.30 Due County for Added and Omitted Taxes SA-12 15,390.62 3,044.18 Local District School Taxes Payable SA-15 289,318.00 621,724.00 Regional High School Taxes Payable SA-17 361,760.25 191,422.42 Due to Water Utility Operating Fund D 2,243.38 Due to Sewer Utility Operating Fund E 1,484.01 Due to Open Space Trust Fund SA-16 335,171.83 224,128.36 Due to General Capital Fund SC-8 65,000.00 65,000.00 2,451,623.87 1,930,712.49 Reserves for Receivables and Other Assets A 379,468.68 533,262.79 Fund Balance A-1 1,150,639.55 857,893.69 3,981,732.10 3,321,868.97 Federal and State Grant Fund: Unappropriated Reserves SA-21 10,471.66 906.47 Appropriated Reserves SA-22 220,544.72 116,467.01 Due to Current Fund A 125,910.33 Due to Trust Other Fund A 236.07 236.07 Reserve for Encumbrances SA-1;SA-22 12,965.00 393.90 Contracts Payable SA-1;SA-22 148,439.01 461.22 The accompanying Notes to Financial Statements are an integral part of this statement. 392,656.46 244,375.00 $ 4,374,388.56 $ 3,566,243.97 8

16800 Exhibit A-1 CURRENT FUND Statements of Operations and Changes in Fund Balance--Regulatory Basis For the Years Ended December 31, 2017 and 2016 Dec. 31, 2017 Dec. 31, 2016 Revenue and Other Income Realized Fund Balance Utilized $ 740,000.00 $ 937,000.00 Miscellaneous Revenues Anticipated 2,127,995.42 2,372,075.46 Receipts from Delinquent Taxes 358,292.35 237,027.16 Receipts from Current Taxes 22,868,020.63 22,253,703.90 Non-Budget Revenue 285,159.43 384,207.40 Other Credits to Income: Unexpended Balance of Appropriation Reserves 262,189.68 195,242.52 Cancellation of Reserve for Revaluation of Real Property 26,984.90 Liquidation of Reserve for: Due Water Operating Fund 1,197.76 Due Sewer Operating Fund 1,197.76 Due Federal & State Grant Fund 125,910.33 Total Income 26,769,963.36 26,406,241.34 Expenditures Budget Appropriations: Within "CAPS": Operations -- Salaries and Wages 2,708,216.00 2,628,805.00 Operations -- Other Expenses 2,423,111.00 2,343,826.00 Deferred Charges and Statutory Expenditures 667,768.00 650,985.00 Excluded from "CAPS": Operations -- Salaries and Wages 182,650.63 225,552.56 Operations -- Other Expenses 566,389.54 829,022.16 Capital Improvements--Excluded from "CAPS" 50,000.00 50,000.00 Municipal Debt Service--Excluded from "CAPS" 1,343,584.82 1,344,223.16 Deferred Charges--Municipal--Excluded from "CAPS" 17,000.00 Transfer to Local School Districts 44,065.00 43,531.00 Regional High School Tax 4,149,132.00 3,808,453.00 Local District School Tax 7,300,760.00 7,532,399.00 Municipal Open Space Tax 110,767.00 111,265.00 Due Municipal Open Space for Added and Omitted Taxes 276.47 52.29 County Taxes 6,155,758.84 6,036,687.57 Due County for Added and Omitted Taxes 15,390.62 3,044.18 Other Debits to Expenditures: Refund of Prior Year Revenue 18,498.81 Prior Year Senior and Veteran Deductions Disallowed 2,000.00 1,392.85 Creation of Reserve for: Due Trust Other Fund 347.58 494.81 Due Water Operating Fund 1,197.76 Due Sewer Operating Fund 1,197.76 Due Federal and State Grant Fund 88,992.27 Total Expenditures 25,737,217.50 25,719,620.18 Excess in Revenues 1,032,745.86 686,621.16 Adjustments to Income Before Fund Balance: Expenditures included above which are by Statute Deferred Charges to Budget of Succeeding Year - 85,000.00 Statutory Excess to Fund Balance 1,032,745.86 771,621.16 Fund Balance Balance Jan. 1 857,893.69 1,023,272.53 1,890,639.55 1,794,893.69 Decreased by: Utilized as Revenue 740,000.00 937,000.00 Balance Dec. 31 $ 1,150,639.55 $ 857,893.69 The accompanying Notes to Financial Statements are an integral part of this statement. 9

16800 Exhibit A-2 CURRENT FUND Statement of Revenues--Regulatory Basis Anticipated Special N.J.S. Excess or Budget 40A: 4-87 Realized (Deficit) Fund Balance Anticipated $ 740,000.00 - $ 740,000.00 - Miscellaneous Revenues: Licenses: Alcoholic Beverages 11,000.00 11,864.00 $ 864.00 Other 40,000.00 62,587.00 22,587.00 Fees and Permits 61,000.00 28,360.01 (32,639.99) Fines and Costs -- Municipal Court 235,000.00 307,542.98 72,542.98 Interest and Costs on Taxes 74,000.00 97,192.05 23,192.05 Interest on Investments and Deposits 10,000.00 16,500.62 6,500.62 Payment in Lieu of Taxes -- Virtua Hospital 40,000.00 40,000.00 Payment in Lieu of Taxes -- Jet Associates 12,000.00 15,124.19 3,124.19 Cable TV Franchise Fee 110,000.00 119,133.84 9,133.84 Rental of Borough Property: U.S. Post Office 11,000.00 15,000.00 4,000.00 Bell Telephone / Verizon Rental 58,000.00 58,348.72 348.72 Cable T.C. Co. (AT&T) 23,000.00 23,846.40 846.40 69 South White Horse Pike 10,000.00 12,041.04 2,041.04 Consolidated Municipal Property Tax Relief Act 15,032.00 15,032.00 Energy Receipts Taxes 681,665.00 681,665.00 Dedicated Uniform Construction Code Fees Offset With Appropriations (N.J.S.40A:4-36 and N.J.A.C.5:23-4.17): Uniform Construction Code Fees 120,000.00 133,748.50 13,748.50 Special Items of General Revenue Anticipated with Prior Written Consent of the Director of the Division of Local Government Services: State and Federal Revenue Off-Set with Appropriations: Recycling Tonnage Grant 9,903.39 9,903.39 Drunk Driving Enforcement Fund $ 6,509.32 6,509.32 Clean Communities Grant 15,867.80 15,867.80 Safe and Secure Communities Program-P.L. 1993, Chapter 220 60,000.00 60,000.00 Body Armor Replacement Grant 1,865.87 1,865.87 Bulletproof Vest Grant 1,786.91 1,786.91 Alcohol Education and Rehabilitation Grant 906.47 1,544.16 2,450.63 New Jersey Department of Transportation 187,000.00 187,000.00 County Historic Preservation 50,000.00 50,000.00 County DWI Grant 1,500.00 1,500.00 Certified Local Government Grant 24,999.00 24,999.00 Other Special Items: Uniform Fire Safety Act 60,000.00 77,015.15 17,015.15 Rental and Inspection Fees 40,000.00 51,111.00 11,111.00 1,684,006.86 289,573.06 2,127,995.42 154,415.50 Receipts from Delinquent Taxes 293,000.00-358,292.35 65,292.35 Amount to be Raised by Taxes for Support of Municipal Budget: Local Tax for Municipal Purposes including Reserve for Uncollected Taxes 5,176,633.25 5,315,747.70 139,114.45 Minimum Library Tax 245,307.25 245,307.25 5,421,940.50-5,561,054.95 139,114.45 Budget Totals 8,138,947.36 289,573.06 8,787,342.72 358,822.30 Non-Budget Revenue - - 285,159.43 285,159.43 $ 8,138,947.36 $ 289,573.06 $ 9,072,502.15 $ 643,981.73 10 (Continued)

16800 Exhibit A-2 CURRENT FUND Statement of Revenues--Regulatory Basis Analysis of Realized Revenue Allocation of Current Tax Collections: Revenue from Collections $ 22,868,020.63 Allocated to County, School, and Open Space Taxes 17,732,084.93 Amount for Support of Municipal Budget Appropriations 5,135,935.70 Add: Appropriation "Reserve for Uncollected Taxes" 425,119.25 Amount for Support of Municipal Budget Appropriations $ 5,561,054.95 Receipts from Delinquent Taxes: Receipts -- Delinquent Tax Collections $ 358,292.35 Revenue Accounts Receivable Fees and Permits--Other: Clerk $ 9,429.00 Searches for Municipal Improvements 10.00 Planning 4,625.00 Zoning 3,260.00 Police 2,946.01 Registrar of Vital Statistics 8,090.00 $ 28,360.01 Analysis of Non-Budget Revenues Miscellaneous Revenue not Anticipated: Receipts -- Treasurer: Senior Citizen and Veteran Administrative Fee $ 1,418.86 Homestead Rebate Administrative Fee 1.78 Refund of Prior Year Expenditures 2,649.84 MVC Inspection Fees 1,550.00 Insurance Refunds 1,474.79 Camp Fees 27,285.00 Police Outside Service Administrative Fees 5,296.18 Copy Fees 145.00 Sale of Municipal Assets 15,365.50 Sale of Trash Cans 3,315.00 Community Center Fees 28,208.00 Property Registration 65,700.00 Miscellaneous 14,086.17 Revenue Accounts Receivable: Rental of Borough Property -- PNC 10,939.97 Receipts -- Collector: Tax Search Fees 160.00 PILOT Program -- Lonaconing 21,047.36 Revenue Accounts Receivable: Property Maintenance Charges 13,325.00 Duplicate Tax Bills 120.00 Miscellaneous 73,070.98 $ $ 177,436.09 107,723.34 285,159.43 The accompanying Notes to Financial Statements are an integral part of this statement. 11

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled OPERATIONS--WITHIN "CAPS" General Government Mayor and Council Salaries and Wages $ 7,500.00 $ 7,500.00 $ 7,404.24 $ 95.76 Other Expenses 6,850.00 6,850.00 4,836.69 $ 32.00 1,981.31 Administrative and Executive Salaries and Wages 32,166.00 32,166.00 28,291.28 3,874.72 Other Expenses 64,950.00 59,950.00 48,641.30 518.13 10,790.57 Financial Administration Salaries and Wages 60,000.00 60,000.00 55,781.34 4,218.66 Other Expenses 39,600.00 38,600.00 25,162.18 927.03 12,510.79 Audit Services Other Expenses 25,000.00 25,000.00 18,343.18 6,656.82 Engineering Services Other Expenses 27,000.00 32,000.00 10,834.16 7,372.05 13,793.79 Collection of Taxes Salaries and Wages 37,000.00 37,000.00 35,025.18 1,974.82 Other Expenses 10,650.00 10,650.00 7,240.19 575.25 2,834.56 Public Employees' Award Program (NJSA 40A:9-8) (NJSA 40A:5-31) Other Expenses 1,500.00 1,500.00 641.73 57.00 801.27 Assessment of Taxes Salaries and Wages 11,600.00 11,600.00 11,550.24 49.76 Other Expenses 3,650.00 3,650.00 3,011.95 388.51 249.54 Municipal Court Salaries and Wages 98,000.00 98,000.00 93,900.80 4,099.20 Other Expenses 11,400.00 12,400.00 11,653.31 530.02 216.67 Legal Services and Costs Other Expenses 65,000.00 65,000.00 60,240.91 4,759.09 Municipal Land Use Law (NJSA 40:55D-1): Planning Board Salaries and Wages 2,000.00 2,000.00 1,100.00 900.00 Other Expenses 9,635.00 9,635.00 6,126.37 1,415.84 2,092.79 Zoning Enforcement Officer Salaries and Wages 6,500.00 6,500.00 3,000.95 3,499.05 Other Expenses 1,200.00 1,200.00 135.53 162.74 901.73 Historic Committee Other Expenses 3,000.00 3,200.00 3,166.60 33.40 12 (Continued)

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled OPERATIONS--WITHIN "CAPS" (CONT'D) General Government (Cont'd) Insurance Health Benefit Waiver $ 17,000.00 $ 17,000.00 $ 14,530.87 $ 2,469.13 Workers Compensation 72,000.00 72,000.00 71,021.60 978.40 Other Insurance 97,000.00 101,000.00 98,584.76 2,415.24 Unemployment Compensation Insurance 13,000.00 13,000.00 10,234.28 2,765.72 Group Insurance for Employees 780,000.00 780,000.00 763,318.68 16,681.32 Public Safety Police Salaries and Wages 1,713,600.00 1,691,600.00 1,630,781.86 60,818.14 Other Expenses: Leasing of Vehicles 12,100.00 12,100.00 12,100.00 Miscellaneous Other Expenses 92,900.00 102,900.00 71,462.94 $ 21,470.21 9,966.85 Fire Aid to Volunteer Fire Company 29,000.00 29,000.00 29,000.00 Miscellaneous Other Expenses 74,900.00 74,900.00 52,112.41 16,329.06 6,458.53 Aid to Volunteer Ambulance/Emergency Squad Other Expenses 31,000.00 31,000.00 31,000.00 Public Defender Other Expenses 7,000.00 7,000.00 3,499.98 3,500.02 Uniform Fire Safety Act (P.L. 1983 CH 383): Fire Salaries and Wages 60,000.00 60,000.00 56,369.56 3,630.44 Other Expenses 5,675.00 8,675.00 6,784.00 753.67 1,137.33 Emergency Management Services Other Expenses 750.00 750.00 270.00 480.00 Municipal Prosecutor Other Expenses 15,000.00 16,000.00 16,000.00 Streets and Roads Road Repairs and Maintenance Salaries and Wages 170,000.00 170,000.00 166,611.54 3,388.46 Other Expenses 33,250.00 30,250.00 22,958.68 3,692.35 3,598.97 Public Buildings and Grounds Salaries and Wages 88,600.00 88,600.00 80,549.30 8,050.70 Other Expenses 75,000.00 75,000.00 67,973.46 4,755.72 2,270.82 Garbage and Trash Collection Salaries and Wages 249,000.00 249,000.00 233,889.03 15,110.97 Other Expenses 19,300.00 19,300.00 6,796.31 2,202.00 10,301.69 13 (Continued)

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled OPERATIONS--WITHIN "CAPS" (CONT'D) Streets and Roads (Cont'd) Vehicle and Equipment Maintenance Salaries and Wages $ 62,450.00 $ 62,450.00 $ 59,571.71 $ 2,878.29 Other Expenses 85,200.00 95,200.00 85,091.16 $ 9,900.99 207.85 Recreation and Education Senior Citizen Coordinator Salaries and Wages 100.00 100.00 100.00 Other Expenses 10,000.00 10,000.00 8,427.37 1,572.63 Animal Control Other Expenses 1.00 1.00 1.00 Parks and Playgrounds Salaries and Wages 19,000.00 24,000.00 23,008.48 991.52 Other Expenses 18,700.00 13,700.00 12,857.90 842.10 Celebration of Public Event, Anniversary or Holiday Other Expenses 5,000.00 5,000.00 5,000.00 Uniform Construction Code -- Appropriations Offset by Dedicated Revenues (N.J.A.C. 5:23-4.17) Construction Official Salaries and Wages 53,200.00 55,200.00 51,913.94 3,286.06 Other Expenses 5,800.00 5,800.00 3,297.95 1,318.00 1,184.05 Other Code Enforcement 28,600.00 28,600.00 27,570.56 1,029.44 Sub-Code Officials: Fire Salaries and Wages 5,500.00 5,500.00 5,200.32 299.68 Unclassified Electricity 60,000.00 60,000.00 48,502.77 11,497.23 Water Service 7,000.00 11,000.00 9,230.00 1,770.00 Sewer Service 6,500.00 6,500.00 5,485.72 1,014.28 Telephone 30,000.00 40,000.00 32,868.53 200.00 6,931.47 Gas / Fuel Oil 25,000.00 25,000.00 21,449.13 605.40 2,945.47 Trash Disposal 268,000.00 256,800.00 214,175.07 22,658.23 19,966.70 Street Lighting 146,000.00 143,000.00 132,165.19 10,834.81 Gasoline / Motor Fuel 85,000.00 80,000.00 64,949.57 15,050.43 Accumulated Sickleave 30,000.00 30,000.00 30,000.00 5,131,327.00 5,131,327.00 4,710,602.76 95,864.20 324,860.04 - Detail: Salaries and Wages 2,723,216.00 2,708,216.00 2,588,480.64 119,735.36 Other Expenses 2,408,111.00 2,423,111.00 2,122,122.12 95,864.20 205,124.68 14 (Continued)

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled DEFERRED CHARGES AND STATUTORY EXPENDITURES --MUNICIPAL--WITHIN "CAPS" Statutory Expenditures: Contribution to: Police and Firemen's Retirement System of N.J. $ 344,134.00 $ 344,134.00 $ 344,134.00 Public Employees Retirement System 100,634.00 100,634.00 100,634.00 Defined Contribution Retirement Program 1,000.00 1,000.00 $ 1,000.00 Social Security System (O.A.S.I.) 222,000.00 222,000.00 208,703.52 13,296.48 Total Deferred Charges and Statutory Expenditures Within--"CAPS" 667,768.00 667,768.00 653,471.52-14,296.48 - Total General Appropriations for Municipal Purposes Within--"CAPS" 5,799,095.00 5,799,095.00 5,364,074.28 $ 95,864.20 339,156.52 - OPERATIONS-- EXCLUDED FROM "CAPS" Solid Waste Disposal Recycling Tax (P.L. 2007, c. 311) 10,400.00 10,400.00 9,394.65 912.24 93.11 Maintenance of Free Public Library Contribution 245,307.25 245,307.25 245,307.25 Storm Water Management Salaries and Wages 38,000.00 38,000.00 30,019.25 7,980.75 Other Expenses 8,250.00 8,250.00 4,000.00 4,250.00 State and Federal Programs Off-set by Revenues: Recycling Tonnage Grant Other Expenses 9,903.39 9,903.39 9,903.39 Clean Communities Grant Other Expenses (NJSA 40A:4-87 $15,867.80) 15,867.80 15,867.80 Drunk Driving Enforcement Grant Other Expenses (NJSA 40A:4-87 $6,509.32) 6,509.32 6,509.32 Body Armor Replacement Grant Other Expenses (NJSA 40A:4-87 $1,865.87) 1,865.87 1,865.87 Bulletproof Vest Grant Other Expenses (NJSA 40A:4-87 $1,786.91) 1,786.91 1,786.91 New Jersey Department of Transportation Other Expenses (NJSA 40A:4-87 $187,000.00) 187,000.00 187,000.00 Certified Local Government Grant Other Expenses (NJSA 40A:4-87 $24,999.00) 24,999.00 24,999.00 15 (Continued)

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled OPERATIONS-- EXCLUDED FROM "CAPS" (CONT'D) State and Federal Programs Off-set by Revenues (Cont'd): Alcohol Education and Rehabilitation Grant Salaries and Wages (NJSA 40A:4-87 $1,544.16) $ 906.47 $ 2,450.63 $ 2,450.63 Camden County DWI Grant Salaries and Wages 1,500.00 1,500.00 1,500.00 County Historic Preservation Other Expenses (NJSA 40A:4-87 $50,000.00) 50,000.00 50,000.00 Safe and Secure Communities Program Salaries and Wages 142,200.00 142,200.00 142,200.00 Matching Funds for Grants 3,000.00 3,000.00 $ 3,000.00 Total Operations--Excluded from "CAPS" 459,467.11 749,040.17 732,804.07 $ 912.24 15,323.86 - Detail: Salaries and Wages 181,106.47 182,650.63 174,669.88 7,980.75 Other Expenses 278,360.64 566,389.54 558,134.19 912.24 7,343.11 CAPITAL IMPROVEMENTS--EXCLUDED FROM "CAPS" Downpayments on Improvements 49,410.00 49,410.00 49,410.00 Capital Improvement Fund 590.00 590.00 590.00 Total Capital Improvements--Excluded from "Caps" 50,000.00 50,000.00 50,000.00 - - - MUNICIPAL DEBT SERVICE--EXCLUDED FROM "CAPS" Payment of Bond Principal 1,025,000.00 1,025,000.00 1,025,000.00 Interest on Bonds 258,731.00 258,731.00 258,730.85 $ 0.15 Interest on Notes 28,000.00 28,000.00 27,385.93 614.07 Green Trust Loan Program: Loan Repayments for Principal and Interest 32,470.00 32,470.00 32,468.04 1.96 Total Municipal Debt Service--Excluded from "CAPS" 1,344,201.00 1,344,201.00 1,343,584.82 - - 616.18 DEFERRED CHARGES--MUNICIPAL-- EXCLUDED FROM "CAPS" Special Emergency Authorizations--5 Year 17,000.00 17,000.00 17,000.00 - - - 16 (Continued)

16800 Exhibit A-3 CURRENT FUND Statement of Expenditures--Regulatory Basis Appropriations Expended Unexpended Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled TRANSFERRED TO BOARD OF EDUCATION FOR USE OF LOCAL SCHOOLS (NJSA 40:48-17.1 & 17.3) $ 44,065.00 $ 44,065.00 $ 44,065.00 - - - Total General Appropriations for Municipal Purposes Excluded from "CAPS" 1,914,733.11 2,204,306.17 2,187,453.89 $ 912.24 $ 15,323.86 $ 616.18 Subtotal General Appropriations 7,713,828.11 8,003,401.17 7,551,528.17 96,776.44 354,480.38 616.18 Reserve for Uncollected Taxes 425,119.25 425,119.25 425,119.25 - - - Total $ 8,138,947.36 $ 8,428,520.42 $ 7,976,647.42 $ 96,776.44 $ 354,480.38 $ 616.18 Adopted Budget $ 8,138,947.36 Appropriation by NJSA 40A:4-87 289,573.06 $ 8,428,520.42 Disbursed $ 7,204,361.92 Refunds (120,039.58) Reserve for Uncollected Taxes 425,119.25 Reserve for Federal and State Grants Appropriated 444,082.92 Due Water Utility Operating Fund 3,441.14 Due Sewer Utility Operating Fund 2,681.77 Deferred Charges -- Special Emergency Appropriations 17,000.00 $ 7,976,647.42 The accompanying Notes to Financial Statements are an integral part of this statement. 17

16800 Exhibit B TRUST FUNDS Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 ASSETS Ref. 2017 2016 Animal Control Fund: Cash SB-1 $ 12,899.96 $ 10,727.16 Open Space Fund: Cash SB-1 12,563.13 124,914.82 Due from Current Fund B-2 335,171.83 224,128.36 347,734.96 349,043.18 Other Funds: Cash -- Treasurer SB-1 1,170,146.27 1,159,735.15 Cash -- Collector SB-2 222,300.00 283,900.00 Due from Federal and State Grant Fund B 236.07 236.07 Police Outside Services Receivable SB-1;SB-7 8,228.96 6,070.00 Due from Developers SB-7 9,682.81 Due from Camden County Community Development SB-4 18,100.00 58,900.00 Due from Camden County Municipal Drug Alliance SB-5 9,362.84 10,105.00 1,438,056.95 1,518,946.22 $ 1,798,691.87 $ 1,878,716.56 18 (Continued)

16800 Exhibit B TRUST FUNDS Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 LIABILITIES, RESERVES AND FUND BALANCE Ref. 2017 2016 Animal Control Fund: Due to State of New Jersey SB-1 $ 1.20 Reserve for Encumbrances SB-1;SB-3 $ 1,725.00 1,135.00 Due Municipal Clerk B 138.60 138.60 Reserve for Animal Control Fund Expenditures SB-3 11,036.36 9,452.36 12,899.96 10,727.16 Open Space Fund: Reserve for Future Use B-1 297,734.96 349,043.18 Due to General Capital Fund B-3;SB1 50,000.00 347,734.96 349,043.18 Other Funds: Reserve for Recreation Facilities SB-7 70,304.48 70,304.48 Reserve for Parking Offenses Adjudication Act SB-7 780.10 730.10 Reserve for Accumulated Leave SB-7 40,000.00 10,000.00 Reserve for Celebration SB-7 5,123.24 4,026.28 Reserve for Payroll Deductions Payable SB-7 61,548.67 57,580.68 Reserve for Affordable Housing SB-7 502,200.31 494,129.99 Reserve for COAH Fees SB-7 4,834.47 5,017.50 Reserve for Developers' Escrow Deposits SB-7 122,052.12 169,485.59 Reserve for Municipal Alliance SB-7 17,814.68 18,121.14 Reserve for Premiums Received at Tax Sale SB-7 222,300.00 283,900.00 Reserve for Recycling Funds SB-7 24,089.15 29,759.32 Reserve for Community Development Block Grant SB-7 7,311.51 29,850.01 Reserve for Bid Bonds SB-7 470.00 470.00 Reserve for Security Deposits SB-7 6,043.85 3,340.00 Reserve for Encumbrances SB-7 543.91 976.00 Reserve for Public Defender SB-7 8,750.00 9,416.25 Reserve for Performance Bonds SB-7 278,313.21 277,106.89 Reserve for Storm Recovery SB-7 18,433.00 18,433.00 Reserve for Investigation Fund SB-7 45.00 45.00 Reserve for Fire Safety SB-7 4,462.00 3,962.00 Reserve for Police Donation SB-7 714.96 1,105.19 Reserve for Police Outside Services SB-7 6,526.00 8,030.65 Reserve for Special Law Enforcement SB-7 4,163.81 5,235.98 Due State of NJ - VCCB SB-7 26,957.34 13,992.61 Due to Current Fund SB-6 4,275.14 3,927.56 The accompanying Notes to Financial Statements are an integral part of this statement. 1,438,056.95 1,518,946.22 $ 1,798,691.87 $ 1,878,716.56 19

16800 Exhibit B-1 TRUST -- MUNICIPAL OPEN SPACE FUND Statements of Operations and Changes in Reserve for Future Use --Regulatory Basis For the Years Ended December 31, 2017 and 2016 Revenue and Other Income Realized 2017 2016 Reserve for Future Use $ 100,000.00 $ 735.00 Amount to be Raised by Taxation 111,043.47 111,317.29 Interest Income 245.60 464.43 Total Income 211,289.07 112,516.72 Expenditures Operating 62,597.29 60,824.13 Capital Improvement 100,000.00 Total Expenditures 162,597.29 60,824.13 Excess (Deficit) in Revenue 48,691.78 51,692.59 Statutory Excess to Reserve 48,691.78 51,692.59 Reserve for Future Use Balance Jan. 1 349,043.18 298,085.59 397,734.96 349,778.18 Utilized as Revenue: Reserve for Future Use 100,000.00 735.00 Balance Dec. 31 $ 297,734.96 $ 349,043.18 The accompanying Notes to Financial Statements are an integral part of this statement. 20

16800 Exhibit B-2 TRUST -- MUNICIPAL OPEN SPACE FUND Statement of Revenues--Regulatory Basis Anticipated Excess Budget Realized (Deficit) Amount to be Raised by Taxation $ 110,767.00 $ 111,043.47 $ 276.47 Interest Income 50.00 245.60 195.60 Reserve for Future Use 100,000.00 100,000.00 Budget Totals $ 210,817.00 $ 211,289.07 $ 472.07 Analysis of Realized Revenues Analysis of Current Tax Collections: Due Current Fund: Open Space Tax Levy $ 110,767.00 Added / Omitted Taxes 276.47 $ 111,043.47 Analysis of Miscellaneous Revenue: Receipts: Interest on Deposits $ 245.60 The accompanying Notes to Financial Statements are an integral part of this statement. 21

16800 Exhibit B-3 TRUST -- MUNICIPAL OPEN SPACE FUND Statement of Expenditures--Regulatory Basis Unexpended Original Budget After Paid or Balance Budget Modification Charged Encumbered Reserved Canceled Operating: Salaries and Wages $ 57,360.00 $ 57,360.00 $ 57,360.00 Other Expenses 53,457.00 53,457.00 5,237.29 $ 48,219.71 Total Operating 110,817.00 110,817.00 62,597.29 - - 48,219.71 Capital Improvements: Down Payments on Improvements 100,000.00 100,000.00 100,000.00 - - - Total Open Space Appropriations $ 210,817.00 $ 210,817.00 $ 162,597.29 - - $ 48,219.71 Disbursed $ 62,597.29 Due General Capital 100,000.00 $ 162,597.29 The accompanying Notes to Financial Statements are an integral part of this statement. 22

16800 Exhibit C GENERAL CAPITAL FUND Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 ASSETS Ref. 2017 2016 Cash SC-1 $ 1,726,665.28 $ 1,275,995.48 Due from State of New Jersey C 23,531.40 23,531.40 Due from Current Fund SC-8 65,000.00 65,000.00 Due from Open Space Trust Fund SC-5;SC-6 50,000.00 Deferred Charges to Future Taxation: Funded SC-3 6,290,427.34 7,344,098.44 Unfunded SC-4 6,509,640.00 3,664,900.00 LIABILITIES, RESERVES AND FUND BALANCE $ 14,665,264.02 $ 12,373,525.32 General Serial Bonds SC-9 $ 6,122,119.00 $ 7,147,119.00 Bond Anticipation Notes SC-10 6,509,390.00 3,664,650.00 Green Acres Loan Payable SC-11 168,308.34 196,979.44 Improvement Authorizations: Funded SC-6 56,701.00 61,630.45 Unfunded SC-6 1,476,677.76 934,061.42 Contracts Payable SC-7 154,464.93 185,217.00 Reserve For Encumbrances SC-1;SC-6 107,750.87 114,605.89 Capital Improvement Fund SC-5 2,186.00 1,596.00 Fund Balance C 67,666.12 67,666.12 $ 14,665,264.02 $ 12,373,525.32 The accompanying Notes to Financial Statements are an integral part of this statement. 23

16800 Exhibit D WATER UTILITY FUND Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 ASSETS Ref. 2017 2016 Operating Fund: Cash -- Treasurer SD-1 $ 1,374,358.51 $ 1,504,515.93 Due From Current Fund SD-1 2,243.38 1,376,601.89 1,504,515.93 Receivables with Full Reserves: Water Rents Receivable SD-4 272,837.20 216,401.94 Fire Hydrant and Sprinkler Rents Receivable SD-5 33,329.49 50,564.47 306,166.69 266,966.41 Total Operating Fund 1,682,768.58 1,771,482.34 Capital Fund: Cash -- Treasurer SD-1 788,783.38 1,079,946.51 Fixed Capital SD-9 17,724,642.44 17,724,642.44 Fixed Capital Authorized and Uncompleted SD-8 3,748,705.49 3,563,705.49 Total Capital Fund 22,262,131.31 22,368,294.44 $ 23,944,899.89 $ 24,139,776.78 24 (Continued)

16800 Exhibit D WATER UTILITY FUND Statements of Assets, Liabilities, Reserves and Fund Balance--Regulatory Basis As of December 31, 2017 and 2016 LIABILITIES, RESERVES AND FUND BALANCE Ref. 2017 2016 Operating Fund: Liabilities: Water Overpayments SD-6 $ 7,876.60 $ 5,465.01 Reserve for Encumbrances D-3;SD-7 12,742.73 97,772.51 Due to Current Fund SD-1 1,197.76 Appropriation Reserves D-3;SD-7 291,326.33 192,911.76 Accrued Interest on Bonds and Notes SD-10 25,849.43 28,624.13 337,795.09 325,971.17 Reserve for Receivables D 306,166.69 266,966.41 Fund Balance D-1 1,038,806.80 1,178,544.76 Total Operating Fund 1,682,768.58 1,771,482.34 Capital Fund: Serial Bonds SD-14 1,737,881.00 2,112,881.00 New Jersey Environmental Trust Loan SD-15 1,593,296.75 1,786,978.45 Bond Anticipation Notes SD-16 609,500.00 609,500.00 Improvement Authorizations: Funded SD-11 117,781.56 138,281.56 Unfunded SD-11 940,585.31 981,971.81 Capital Improvement Fund SD-1 56,915.71 31,915.71 Reserve for Payment of Debt D 303,274.53 333,274.53 Contracts Payable SD-1;SD-11 2,205.00 33,730.06 Reserve for Encumbrances SD-1;SD-11 12,940.65 20,692.22 Reserve for Amortization SD-12 16,705,862.41 16,137,180.71 Deferred Reserve for Amortization SD-13 164,922.77 164,922.77 Fund Balance D 16,965.62 16,965.62 Total Capital Fund 22,262,131.31 22,368,294.44 $ 23,944,899.89 $ 24,139,776.78 The accompanying Notes to Financial Statements are an integral part of this statement. 25

16800 Exhibit D-1 WATER UTILITY OPERATING FUND Statements of Operations and Changes in Operating Fund Balance--Regulatory Basis For the Years Ended December 31, 2017 and 2016 Revenue and Other Income Realized 2017 2016 Operating Surplus Anticipated $ 344,191.00 $ 326,503.00 Water Rents 2,270,049.14 2,536,627.61 Fire Hydrant and Sprinkler Service 456,199.11 406,243.63 Miscellaneous 134,431.15 188,392.79 Reserve for Payment of Debt 30,000.00 33,200.00 Other Credits to Income: Unexpended Balance of Appropriation Reserves 177,105.64 138,638.46 Total Income 3,411,976.04 3,629,605.49 Expenditures Operating 2,405,100.00 2,318,680.00 Debt Service 672,542.00 685,363.66 Deferred Charges and Statutory Expenditures 104,881.00 102,253.00 Capital Improvements 25,000.00 25,000.00 Total Expenditures 3,207,523.00 3,131,296.66 Excess (Deficit) in Revenue 204,453.04 498,308.83 Adjustments to Income Before Fund Balance: Expenditures Included Above Which are by Statute Deferred Charges to Budget of Succeeding Years - - Statutory Excess to Fund Balance 204,453.04 498,308.83 Fund Balance Balance Jan. 1 1,178,544.76 1,006,738.93 1,382,997.80 1,505,047.76 Decreased by: Utilized as Revenue in Water Utility Fund 344,191.00 326,503.00 Balance Dec. 31 $ 1,038,806.80 $ 1,178,544.76 The accompanying Notes to Financial Statements are an integral part of this statement. 26