TOWNSHIP OF FAIRFIELD REPORT OF AUDIT FOR THE YEAR ENDED DECEMBER 31, 2014

TOWNSHIP OF FAIRFIELD REPORT OF AUDIT FOR THE YEAR ENDED DECEMBER 31, 2014

TOWNSHIP OF FAIRFIELD TABLE OF CONTENTS Exhibit Page No. PART I Independent Auditor's Report 1-3 CURRENT FUND A Comparative Balance Sheet - Regulatory Basis 4-5 A - 1 Comparative Statement of Operations and Changes in Fund Balance - Regulatory Basis 6-7 A - 2 Statement of Revenues - Regulatory Basis 8-10 A - 3 Statement of Expenditures - Regulatory Basis 11-16 TRUST FUND B Comparative Balance Sheet - Regulatory Basis 17 GENERAL CAPITAL FUND C Comparative Balance Sheet - Regulatory Basis 18 C - 1 Statement of Fund Balance - Regulatory Basis 19 GENERAL FIXED ASSET ACCOUNT GROUP D Comparative Balance Sheet - Regulatory Basis 20 NOTES TO FINANCIAL STATEMENTS - REGULATORY BASIS 21-33 SUPPLEMENTARY INFORMATION Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements - Regulatory Basis Performed in Accordance with Government Auditing Standards 34-35 Schedule of Federal and State Awards 36 Notes to Schedule of Federal and State Awards 37

TOWNSHIP OF FAIRFIELD TABLE OF CONTENTS Exhibit CURRENT FUND Page No. A - 4 Schedule of Cash - Treasurer 38 A - 5 Schedule of Cash - Collector 39 A - 6 Schedule of Taxes Receivable and Analysis of Property Tax Levy 40 A - 7 Schedule of Tax Title Liens 41 A - 8 Schedule of Revenue Accounts Receivable 42 A - 9 Schedule of Appropriation Reserves - Prior Year 43-46 A - 10 Schedules of School Tax 47-48 A - 11 Schedule of Federal and State Grants Receivable 49 A - 12 Schedule of Appropriated Reserves for Federal and State Grants 50 A - 13 Schedule of Reserves for Federal and State Grants - Unappropriated 51 TRUST FUND B - 1 Schedule of Dog Trust Cash - Treasurer 52 B - 2 Schedule of Other Trust Cash - Treasurer 53 B - 3 Schedule of Reserve for Animal Control Expenditures 54 B - 4 Schedule of Due to State of New Jersey 55 B - 5 Schedule of Other Reserves 56 GENERAL CAPITAL FUND C - 2 Schedule of Cash - Treasurer 57 C - 3 Analysis of Cash 58 C - 4 Schedule of Capital Improvement Fund 59 C - 5 Schedule of Deferred Charges to Future Taxation - Funded 60 C - 6 Schedule of Deferred Charges to Future Taxation - Unfunded 61 C - 7 Schedule of Improvement Authorizations 62 C - 8 Schedule of Serial Bonds Payable 63 C - 9 Schedule of Bond Anticipation Notes n/a C - 10 Schedule of Bonds and Notes Authorized But Not Issued 64 PART II General Comments 65-67 Findings and Recommendations 68-69 Status of Prior Year Findings 70-71

TOWNSHIP OF FAIRFIELD PART I REPORT ON AUDIT OF FINANCIAL STATEMENTS - REGULATORY BASIS DECEMBER 31, 2014

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To the Honorable Mayor and Members of Township Committee Township of Fairfield County of Cumberland, New Jersey Report on the Financial Statements INDEPENDENT AUDITOR S REPORT We have audited the accompanying balance sheets - regulatory basis of the various funds and account group of the Township of Fairfield, as of December 31, 2014 and 2013, the related statement of operations and changes in fund balance - regulatory basis for the years then ended, and the related statement of revenues - regulatory basis and statement of expenditures - regulatory basis of the various funds for the year ended December 31, 2014, 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 the basis of accounting 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 misstatements, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion 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 audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division ), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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. 1

Basis for Adverse Opinion on U.S Generally Accepted Accounting Principles. As described in Note 1 of the financial statements, the financial statements are prepared by the Township of Fairfield on the basis of the financial reporting provisions prescribed by 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 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 U.S. Generally Accepted Accounting Principles 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 each fund of the Township of Fairfield as of December 31, 2014 and 2013 or changes in financial position for the years then ended. Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the regulatory basis balances sheets and account group as of December 31, 2014 and 2013, the regulatory basis statements of operations for the year then ended and the regulatory basis statements of revenues and expenditures for the years ended December 31, 2014 and 2013 in accordance with the basis of financial reporting 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 Township of Fairfield s basic financial statements. The supplementary information listed in the table of contents and the general comments and findings and recommendations section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental information listed in the table of contents is the responsibility of management and was derived from and relates 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. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental information listed in the table of contents is presented for the purposes of additional analysis and is not a required part of the financial statements. Because of the significance of the variances between the regulatory basis of accounting and accounting principles generally accepted in the United States of America, it is inappropriate to and we do not express an opinion on the supplementary information referred to above. The general comments and recommendations section has not been subject to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 2

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2015 on our consideration of the Township of Fairfield 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 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 of Fairfield s internal control over financial reporting and compliance. Ford, Scott & Associates, L.L.C. FORD, SCOTT & ASSOCIATES, L.L.C. CERTIFIED PUBLIC ACCOUNTANTS Kenneth W. Moore Kenneth W. Moore Certified Public Accountant Registered Municipal Accountant No. 231 February 20, 2015 3

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EXHIBIT - A CURRENT FUND

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CURRENT FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS AS OF DECEMBER 31, Exhibit A Sheet 1 ASSETS 2014 2013 Regular Fund: Cash: Cash Treasurer $ 2,312,447.96 1,055,297.65 Cash - Collector - 1,294,667.88 Cash - Change 300.00 300.00 Total Cash 2,312,747.96 2,350,265.53 Due from State: Seniors and Veterans 4,018.76 - Receivables and Other Assets with Full Reserves: Delinquent Property Taxes Receivable 533,918.51 551,544.00 Tax Title and Other Liens 431,683.31 333,221.20 Property Acquired for Taxes - at Assessed Valuation 426,250.00 426,250.00 Revenue Accounts Receivable - 2,816.60 Interfund Receivable: Due from Trust Other Payroll 33,762.52 Due from Federal & State Grant Fund 66,792.70 6,273.46 Total Receivables and Other Assets 1,492,407.04 1,320,105.26 Deferred Charges: Emergency Appropriation - 90,000.00 Special Emergency Appropriation 9,564.00 57,752.00 Expenditure Without an Appropriation 36,830.09 13,647.38 Total Deferred Charges 46,394.09 161,399.38 Total Regular Fund 3,855,567.85 3,831,770.17 Federal and State Grant Fund: Cash - - Federal and State Grants Receivable 199,100.88 302,727.41 Deferred Charge-Overexpenditure 6,966.59 - Total Federal and State Grant Fund 206,067.47 302,727.41 Total Current Fund $ 4,061,635.32 4,134,497.58 The accompanying Notes to the Financial Statements are an integral part of this statement. 4

CURRENT FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS AS OF DECEMBER 31, Exhibit A Sheet 2 LIABILITIES, RESERVES AND FUND BALANCE 2014 2013 Regular Fund: Liabilities: Appropriation Reserves $ 89,195.43 226,788.17 Reserve for Encumbrances 65,995.80 56,905.56 Accounts Payable Prepaid Taxes 98,261.45 104,792.02 Overpaid Taxes 18,054.85 44,097.80 Local School Tax Payable 439,117.99 462,701.99 Regional School Tax Payable 319,785.18 285,044.31 County Added Tax Payable 3,483.39 4,534.93 Due to State: Seniors and Veterans 6,645.11 Interfund Payable: Animal Control Fund 204.20 477.00 Capital Fund 261,694.78 231,994.78 Trust Other 11,246.06 14,723.23 1,307,039.13 1,438,704.90 Reserve for Receivables and Other Assets 1,492,407.04 1,320,105.26 Fund Balance 1,056,121.68 1,072,960.01 Total Regular Fund 3,855,567.85 3,831,770.17 Federal and State Grant Fund: Unappropriated Reserves 2,898.77 3,384.48 Appropriated Reserves 136,309.11 290,419.51 Encumbrances Payable 66.89 2,649.96 Due to Current Fund 66,792.70 6,273.46 Total Federal and State Grant Fund 206,067.47 302,727.41 Total Current Fund $ 4,061,635.32 4,134,497.58 The accompanying Notes to the Financial Statements are an integral part of this statement. 5

CURRENT FUND COMPARATIVE STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, Exhibit A - 1 Sheet 1 2014 2013 Revenue and Other Income Realized Fund Balance $ 532,000.00 506,000.00 Miscellaneous Revenue Anticipated 814,337.35 1,000,680.67 Receipts from Delinquent Taxes 455,402.78 415,163.94 Receipts from Current Taxes 6,657,506.68 6,471,572.20 Non Budget Revenue 138,033.96 321,221.69 Other Credits to Income: Unexpended Balance of Appropriation Res. 199,260.62 180,288.74 Escheated Funds 17,832.67 - Total Income 8,814,374.06 8,894,927.24 Expenditures Budget and Emergency Appropriations: Appropriations Within "CAPS" Operations: Salaries and Wages 618,950.00 647,390.78 Other Expenses 952,048.00 1,016,719.00 Deferred Charges & Statutory Expenditures 132,794.38 101,602.00 Appropriations Excluded from "CAPS" Operations: Salaries and Wages - - Other Expenses 40,228.04 228,419.21 Capital Improvements 20,000.00 51,600.00 Debt Service 312,525.02 315,068.77 Deferred Charges 155,450.00 121,688.00 Local District School Tax 1,229,395.00 1,244,058.00 Regional District School Tax 1,527,829.00 1,458,347.00 County Tax 3,207,151.27 3,091,560.41 County Share of Added Tax 3,483.39 4,534.93 Interfund Created 94,008.96 6,273.46 Other: Prior Year Senior Citizens and Veterans Deductions Disallowed 3,750.00 3,000.00 Miscellaneous 1,599.33 - Total Expenditures 8,299,212.39 8,290,261.56 Excess/(Deficit) in Revenue 515,161.67 604,665.68 The accompanying Notes to the Financial Statements are an integral part of this statement. 6

CURRENT FUND COMPARATIVE STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, Exhibit A - 1 Sheet 2 2014 2013 Adjustments to Income before Fund Balance: Expenditures included above which are by Statute Deferred Charges to Budgets of Succeeding Year Emergency Appropriation - 90,000.00 Total Adjustments - 90,000.00 Statutory Excess to Fund Balance 515,161.67 694,665.68 Fund Balance January 1 1,072,960.01 884,294.33 1,588,121.68 1,578,960.01 Decreased by: Utilization as Anticipated Revenue 532,000.00 506,000.00 Fund Balance December 31 $ 1,056,121.68 1,072,960.01 The accompanying Notes to the Financial Statements are an integral part of this statement. 7

CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A-2 Anticipated Excess or Budget N.J.S. 40A:4-87 Realized (Deficit) Fund Balance Anticipated $ 532,000.00 532,000.00 - Total Fund Balance Anticipated 532,000.00-532,000.00 - Miscellaneous Revenues: Section A: Local Revenues Licenses: Alcoholic Beverages 2,250.00 4,575.00 2,325.00 Fees and Permits 100,000.00 93,510.00 (6,490.00) Fines and Costs: Municipal Court 41,000.00 40,529.40 (470.60) Interest and Costs on Taxes 50,000.00 89,951.64 39,951.64 Cell Tower Lease 17,000.00 20,331.57 3,331.57 Cable T.V. Franchise Fees 12,000.00 13,381.70 1,381.70 Total Section A: Local Revenues 222,250.00-262,279.31 40,029.31 Section B: State Aid Without Offsetting Appropriations Consolidated Municipal Property Tax Relief 16,598.00 16,598.00 - Energy Receipts Tax 424,720.00 424,720.00 - Garden State Preservation Trust Fund 38,491.00 38,491.00 - Total Section B: State Aid Without Offsetting Appropriations 479,809.00-479,809.00 - Section C: Uniform Construction Code Fees Uniform Construction Code Fees 8,000.00 32,243.00 24,243.00 Total Section C: Uniform Construction Code Fees 8,000.00-32,243.00 24,243.00 The accompanying Notes to the Financial Statements are an integral part of this statement. 8

CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A-2 Anticipated Excess or Budget N.J.S. 40A:4-87 Realized (Deficit) Section F: Special Items - Public and Private Programs Off-Set with Appropriations Recycling Tonnage Grant 3,384.48 3,384.48 - Clean Communities Program 11,621.56 11,621.56 - Total Section F: Special Items - Public and Private Programs Off-Set with Appropriations 3,384.48 11,621.56 15,006.04 - Section G: Other Special Items Uniform Fire Safety Act - - - Reserve for Payment of Debt Service 25,000.00 25,000.00 - Total Section G: Other Special Items 25,000.00-25,000.00 - Total Miscellaneous Revenues: 738,443.48 11,621.56 814,337.35 64,272.31 Receipts from Delinquent Taxes 400,000.00 455,402.78 55,402.78 Amount to be Raised by Taxes for Support of Municipal Budget Local Tax for Municipal Purposes 1,208,111.65 1,346,354.29 138,242.64 Total Amount to be Raised by Taxes for Support of Municipal Budget 1,208,111.65-1,346,354.29 138,242.64 Budget Totals 2,878,555.13 11,621.56 3,148,094.42 257,917.73 Non- Budget Revenues: Other Non- Budget Revenues: 138,033.96 138,033.96 2,878,555.13 11,621.56 3,286,128.38 395,951.69 The accompanying Notes to the Financial Statements are an integral part of this statement. 9

CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 2 Analysis of Realized Revenues Allocation of Current Tax Collections: Revenue from Collections 6,657,506.68 Less: Reserve for Tax Appeals Pending - Net Revenue from Collections 6,657,506.68 Allocated to: School, County and Other Taxes 5,967,858.66 Balance for Support of Municipal Budget Appropriations 689,648.02 Increased by: Appropriation "Reserved for Uncollected Taxes" 656,706.27 Amount for Support of Municipal Budget Appropriations 1,346,354.29 Receipts from Delinquent Taxes: Delinquent Tax Collection 442,963.50 Tax Title Lien Collections 12,439.28 Total Receipts from Delinquent Taxes 455,402.78 Analysis of Non-Budget Revenue: Miscellaneous Revenue Not Anticipated: Other Licenses - Bank Interest 35.96 Ambulance Fees 37,200.37 JIF 8,585.00 Site Plan 900.00 Property Lists 30.00 Vital Statistics 128.70 Cash Accounts 45,482.15 Zoning Fees 990.00 Senior & Veterans Administrative Fees 1,410.00 Tax Collector 2,034.89 Uniform Fire 774.15 Sewer Charges 18,703.00 Miscellaneous 21,759.74 Total Miscellaneous Revenue Not Anticipated: 138,033.96 The accompanying Notes to the Financial Statements are an integral part of this statement. 10

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 3 (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled OPERATIONS WITHIN "CAPS" GENERAL GOVERNMENT: General Administration Salaries and Wages $ 79,000.00 72,000.00 70,478.68 1,521.32 - Other Expenses 12,500.00 12,500.00 12,101.49 379.54 18.97 - Public Relations Other Expenses 1,000.00 1,000.00 717.86 52.00 230.14 - Mayor and Committee Salaries and Wages 28,100.00 28,100.00 27,274.92 825.08 - Other Expenses 2,200.00 2,200.00 1,910.45 200.00 89.55 - Municipal Clerk Salaries and Wages 40,000.00 40,000.00 39,624.83 375.17 - Other Expenses 20,000.00 18,000.00 16,155.27 1,184.36 660.37 - Financial Administration Salaries and Wages 21,000.00 24,200.00 24,071.55 128.45 - Other Expenses - Miscellaneous Other Expenses 10,000.00 10,000.00 8,397.92 882.49 719.59 - Audit Services Other Expenses 31,000.00 31,000.00 31,000.00 - - Computerized Data Processing Other Expenses 2,000.00 2,000.00 608.00 1,392.00 - Revenue Administration Salaries and Wages 45,000.00 50,000.00 50,000.00 - - Other Expenses 12,000.00 9,500.00 8,314.62 261.49 923.89 - Assessment of Taxes Salaries and Wages 21,250.00 21,850.00 21,774.23 75.77 - Other Expenses 11,500.00 11,500.00 9,489.02 2,010.98 - (0.00) Other Expenses 20,000.00 5,000.00-3,703.67 1,296.33 - Legal Services Other Expenses 65,000.00 70,000.00 64,229.65-5,770.35 - Other Expenses - TTL & Foreclosed Property 3,000.00 - - - Engineering Services and Costs Other Expenses 30,000.00 39,500.00 35,734.14 362.75 3,403.11 - LAND USE ADMINISTRATION Planning Board Other Expenses 10,000.00 16,250.00 14,482.43 475.29 1,292.28 - The accompanying Notes to the Financial Statements are an integral part of this statement. 11

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 3 PUBLIC SAFETY FUNCTION (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled School Crossing Guards Salaries and Wages 9,700.00 12,700.00 12,512.25 187.75 - Other Expenses 170.00 170.00-170.00 - Office of Emergency Management Salaries and Wages 3,400.00 3,400.00 3,346.98 53.02 - Other Expenses 4,700.00 1,700.00 810.00-890.00 - Aid to Volunteer Fire Companies Aid to Volunteer Fire Company No. 1 45,000.00 45,000.00 45,000.00 - - Aid to Volunteer Fire Company No. 2 45,000.00 45,000.00 45,000.00 - - Ambulance Service Salaries and Wages 148,000.00 158,000.00 156,437.38 1,562.62 - Other Expenses 20,000.00 20,000.00 18,045.77 1,136.25 817.98 - Fire Department Salaries and Wages - - - - - Other Expenses 6,000.00 6,000.00 6,000.00 - - Other Expenses - Equipment 12,000.00 12,000.00 7,652.87 4,347.13 - Municipal Prosecutor Other Expenses 15,000.00 15,000.00 13,750.00 1,250.00 - - PUBLIC WORKS Streets and Roads Maintenance Salaries and Wages 95,000.00 100,000.00 99,644.22 355.78 - Other Expenses 58,000.00 58,000.00 45,755.93 3,586.28 8,657.79 - Buildings and Grounds Other Expenses 41,500.00 41,500.00 37,770.59 2,689.73 1,039.68 - Convenience Center Salaries and Wages 9,000.00 9,100.00 9,084.50 15.50 - Other Expenses 92,000.00 82,000.00 76,730.48 2,695.30 2,574.22 - HEALTH AND HUMAN SERVICE Environmental Commission Other Expenses 3,500.00 2,500.00 2,084.00 21.84 394.16 - Animal Control Other Expenses 18,500.00 14,500.00 11,717.82 1,510.00 1,272.18 - - The accompanying Notes to the Financial Statements are an integral part of this statement. 12

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 3 (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled RECREATION Senior Citizen Center Salaries and Wages 19,500.00 20,000.00 19,766.14 233.86 - Other Expenses 2,200.00 2,200.00 1,522.17 677.83 - Recreation Services and Programs Other Expenses 7,000.00 3,000.00 2,268.87-731.13 - Parks and Playgrounds Other Expenses 1,500.00 9,000.00 8,849.88 150.12 - MUNICIPAL COURT Municipal Court Administration Salaries and Wages 46,500.00 36,600.00 36,161.96 438.04 - Other Expenses 11,000.00 8,750.00 2,437.78 180.00 6,132.22 - Public Defender Other Expenses 5,000.00 5,000.00 1,025.00-3,975.00 - INSURANCE Other 42,000.00 42,000.00 42,000.00 - - Employee Group Insurance 53,778.00 43,778.00 36,399.83 7,091.71 286.46 - Worker's Compensation 74,000.00 81,000.00 79,996.00 323.44 680.56 - SEWER UTILITY Other Expenses Maintenance 8,000.00 8,000.00 7,663.59 275.00 61.41 - Treatment 11,000.00 9,000.00 8,700.42 299.58 - UNIFORM CONSTRUCTION CODE State Uniform Construction Code Construction Official Salaries and Wages 40,000.00 23,000.00 22,765.25-234.75 - Other Expenses 3,000.00 30,000.00 29,689.17-310.83 - Code Enforcement Salaries and Wages 20,000.00 20,000.00 19,925.75 74.25 - The accompanying Notes to the Financial Statements are an integral part of this statement. 13

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 3 (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled UNCLASSIFIED Electric 36,000.00 36,000.00 33,669.74 1,834.75 495.51 - Telephone 7,000.00 10,000.00 7,904.77 518.27 1,576.96 - Gasoline 39,000.00 31,000.00 25,025.79 3,557.25 2,416.96 - Natural Gas 10,000.00 10,000.00 7,907.67 1,639.51 452.82 - Street Lighting 47,000.00 47,000.00 41,695.73 4,873.90 430.37 - Heating Oil 4,500.00 2,500.00 1,835.19 664.81 - Economic Development 2,000.00 2,000.00 900.00 1,100.00 - Salary Adjustments - - - - - TOTAL OPERATIONS WITHIN "CAPS" 1,580,998.00 1,570,998.00 1,465,818.55 42,695.80 62,483.65 (0.00) Contingent - TOTAL OPERATIONS INCLUDING CONTINGENT WITHIN "CAPS" 1,580,998.00 1,570,998.00 1,465,818.55 42,695.80 62,483.65 (0.00) Detail: Salaries and Wages 625,450.00 618,950.00 612,868.64-6,081.36 - Other Expenses 955,548.00 952,048.00 852,949.91 42,695.80 56,402.29 (0.00) DEFERRED CHARGES AND STATUTORY EXPENDITURES: Deferred Charges: Emergency Authorizations 37,438.00 37,438.00 37,438.00 - - Overexpenditure of Grant 13,647.38 13,647.38 13,647.38 - - Statutory Expenditures: - Contributions to: - Public Employees' Retirement System 26,709.00 26,709.00 23,986.00 2,723.00 - Social Security System (O.A.S.I.) 45,000.00 45,000.00 41,711.22-3,288.78 - Unemployment Compensation Insurance 10,000.00 10,000.00 10,000.00 - - TOTAL DEFERRED CHARGES AND STATUTORY EXPENDITURES: 132,794.38 132,794.38 126,782.60-6,011.78 - TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL PURPOSES WITHIN "CAPS" 1,713,792.38 1,703,792.38 1,592,601.15 42,695.80 68,495.43 (0.00) Exhibit A - 3 The accompanying Notes to the Financial Statements are an integral part of this statement. 14

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled OPERATIONS - EXCLUDED FROM "CAPS" (A) Operations - Excluded from "CAPS" Employee Group Health 1,222.00 1,222.00 1,222.00 - - Emergency Service Volunteer Length of Service Award Program 14,000.00 24,000.00-23,300.00 700.00-15,222.00 25,222.00 1,222.00 23,300.00 700.00 - (A) Public and Private Programs Off-Set by Revenues Clean Communities Program - 11,621.56 11,621.56 - - Recycling Tonnage Grant 3,384.48 3,384.48 3,384.48 - - Total Public and Private Programs Off-Set by Revenues 3,384.48 15,006.04 15,006.04 - - - Total Operations - Excluded from "CAPS" 18,606.48 40,228.04 16,228.04 23,300.00 700.00 - Detail: Salaries and Wages - - - - - - Other Expenses 18,606.48 40,228.04 16,228.04 23,300.00 700.00 - (C) Capital Improvements Capital Improvement Fund - - - - - Demolition of Township Owned Property 20,000.00 20,000.00-20,000.00 - Total Capital Improvements 20,000.00 20,000.00 - - 20,000.00 - (D) Debt Service Payment of Bond Principal 180,000.00 180,000.00 180,000.00 - - Interest on Bonds 134,000.00 134,000.00 132,525.02 1,474.98 Total Debt Service 314,000.00 314,000.00 312,525.02 - - 1,474.98 The accompanying Notes to the Financial Statements are an integral part of this statement. 15

CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014 Exhibit A - 3 (Over expended) Appropriations Expended Unexpended Budget After Paid or Balance Budget Modifications Charged Encumbered Reserved Cancelled (E) Deferred Charges Emergency Authorizations 52,562.00 52,562.00 52,562.00 - Special Emergency Authorizations - 5 years 48,188.00 48,188.00 48,188.00 - - Deferred Charges to Future Taxation Unfunded - Ord 2007-3 22,500.00 22,500.00 22,500.00 - - Unfunded - Ord 2011-05 15,000.00 15,000.00 15,000.00 - - Unfunded - Ord 2012-14 17,200.00 17,200.00 17,200.00 - - Total Deferred Charges 155,450.00 155,450.00 155,450.00 - - - TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL PURPOSES EXCLUDED FROM "CAPS" 508,056.48 529,678.04 484,203.06 23,300.00 20,700.00 1,474.98 SUBTOTAL GENERAL APPROPRIATIONS 2,221,848.86 2,233,470.42 2,076,804.21 65,995.80 89,195.43 1,474.98 (M) Reserve for Uncollected Taxes 656,706.27 656,706.27 656,706.27 - TOTAL GENERAL APPROPRIATIONS $ 2,878,555.13 2,890,176.69 2,733,510.48 65,995.80 89,195.43 1,474.98 Budget 2,878,555.13 Cancelled 1,474.98 Appropriations by 40A:4-87 11,621.56 Overexpended (0.00) Emergency Appropriations - 2,890,176.69 1,474.98 Reserve for Uncollected Taxes 656,706.27 Federal and State Grants 15,006.04 Deferred Charges 206,535.38 Due to Unemployment Trust 9,312.17 Disbursements 1,845,950.62 2,733,510.48 The accompanying Notes to the Financial Statements are an integral part of this statement. 16

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EXHIBIT - B TRUST FUND

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Exhibit B TRUST FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS AS OF DECEMBER 31, ASSETS DOG TRUST FUND 2014 2013 Cash $ 1,608.40 606.10 Due from Current Fund 204.20 477.00 OTHER TRUST FUND 1,812.60 1,083.10 Cash and Investments 253,495.30 371,910.71 Interfunds and Receivables: Due from Current Fund 11,246.06 14,723.23 Consortia Grant - Loans Receivable 61,034.00 61,034.00 Small Cities Loans - Receivable 136,785.00 136,785.00 LIABILITIES, RESERVES AND FUND BALANCE DOG TRUST FUND 462,560.36 584,452.94 464,372.96 585,536.04 Reserve for Dog Fund Expenditures 1,812.00 1,054.30 Due to State of New Jersey 0.60 28.80 OTHER TRUST FUND 1,812.60 1,083.10 Due to Current Fund 33,762.52 Reserve for: Unemployment Compensation 30,565.13 31,424.13 Payroll - 34,840.07 Sanitary Landfill 14,895.72 14,895.72 Developers Escrow 56,613.31 57,083.57 Uniform Fire Safety Fees 2,765.38 2,765.38 Tax Sale Premiums 73,400.00 145,450.00 Redemption of Tax Title Liens 15,403.24 66,283.01 Consortia Grant 8,860.06 8,860.06 Small Cities Grant 28,476.00 25,032.00 Loans Receivable: Consortia 61,034.00 61,034.00 Small Cities 136,785.00 136,785.00 462,560.36 584,452.94 $ 464,372.96 585,536.04 The accompanying Notes to the Financial Statements are an integral part of this statement. 17

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EXHIBIT - C GENERAL CAPITAL FUND

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Exhibit C GENERAL CAPITAL FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS AS OF DECEMBER 31, ASSETS 2014 2013 Cash $ 401.28 401.28 Deferred Charges to Future Taxation - Funded 2,976,000.00 3,156,000.00 Unfunded 217,123.20 271,823.20 Interfunds and Receivables Due from Current Fund 261,694.78 231,994.78 LIABILITIES, RESERVES AND FUND BALANCE 3,455,219.26 3,660,219.26 Serial Bonds Payable 2,976,000.00 3,156,000.00 Improvement Authorizations: Funded 10,861.51 10,861.51 Unfunded 51,319.75 51,319.75 Reserve for Landfill Closure 11,755.00 11,755.00 Reserve for Payment of Debt 252,891.00 277,891.00 Capital Improvement Fund 152,392.00 152,392.00 Fund Balance - - $ 3,455,219.26 3,660,219.26 There were bonds and notes authorized but not issued at December 31 (C - 10) 2013 271,823.20 2014 217,123.20 The accompanying Notes to the Financial Statements are an integral part of this statement. 18

Exhibit C - 1 2014 2013 Beginning Balance January 1 $ - - Increased by: None Decreased by: None GENERAL CAPITAL FUND COMPARATIVE STATEMENT OF FUND BALANCE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, Ending Balance December 31 $ - - The accompanying Notes to the Financial Statements are an integral part of this statement. 19

EXHIBIT - D GENERAL FIXED ASSET ACCOUNT GROUP

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Exhibit D GENERAL FIXED ASSET ACCOUNT GROUP COMPARATIVE BALANCE SHEET - REGULATORY BASIS AS OF DECEMBER 31, ASSETS 2014 2013 Land Buildings and Improvements $ 3,027,800.00 3,027,800.00 Machinery and Equipment 2,163,906.45 2,139,192.00 5,191,706.45 5,166,992.00 LIABILITIES, RESERVES AND FUND BALANCE Investment in General Fixed Assets $ 5,191,706.45 5,166,992.00 The accompanying Notes to the Financial Statements are an integral part of this statement. 20

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TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity Except as noted below, the financial statements of the Township of Fairfield include every board, body, office or commission supported and maintained wholly or in part by funds appropriated by the Township of Fairfield, as required by N.J.S. 40A:5-5. Component units are legally separate organizations for which the entity is financially accountable. The entity is financially accountable for an organization if the entity appoints a voting majority of the organization s governing board and (1) the entity is able to significantly influence the programs or services performed or provided by the organization; or (2) the entity is legally entitled to or can otherwise access the organization s resources; the entity is legally obligated or has otherwise assumed the responsibility to finance the deficits of or provide financial support to the organization; or the entity is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the entity in that the entity approves the budget, the issuance of debt or the levying of taxes. The entity has no component units. The Township of Fairfield was incorporated in 1798. The Township is located in Cumberland County approximately forty-five miles southeast of the City of Philadelphia. The population according to the 2010 Federal Census is 6,295. The Township operates under a five member Township Committee. The Township Committee appoints the Mayor at the annual reorganization meeting. The Mayor is the Chief Executive Officer of the Township and is assisted by the Township Committee. B. Description of Funds The accounting policies of the Township of Fairfield conform to the accounting principles applicable to municipalities which have been prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Such principles and practices 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 the respect to public funds. Under this method of accounting, the Township of Fairfield accounts for its financial transactions through the following separate funds: Current Fund -- resources and expenditures for governmental operations of a general nature, including Federal and State grant funds. Trust Funds -- receipts, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created. General Capital Fund -- receipt and disbursement of funds for the acquisition of general facilities, other than those acquired in the Current Fund. General Fixed Assets Account Group All fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets account group, rather then in governmental funds. 21

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued C. Basis of Accounting The accounting principles and practices prescribed for municipalities by the State of New Jersey differ in certain respects from generally accepted accounting principles applicable to local governmental units. The more significant policies in New Jersey follow. A modified accrual basis of accounting is followed with minor exceptions. Revenues -- are recorded as received in cash except for certain amounts, which are due from other governmental units. Receipts from Federal and State grants are realized as revenue when anticipated in the entity budget. Receivables for property taxes are recorded with offsetting reserves on the balance sheet of the entity's Current Fund. Other amounts that are due to the entity which are susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenue when received. Expenditures -- are recorded on the "budgetary" basis of accounting. Generally expenditures are recorded when an amount is encumbered for goods or services through the issuance of a purchase order in conjunction with the Encumbrance Accounting System. Outstanding encumbrances at December 31 are reported as a cash liability in the financial statements. Appropriation reserves covering unencumbered appropriation balances are automatically created at December 31st of each year and recorded as liabilities, except for amounts which may be canceled by the Governing Body. Appropriation reserves are available, until lapsed at the close of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding fiscal year. Lapsed appropriation reserves are recorded as income. Appropriations for principal payments on outstanding general capital bonds and notes are provided on the cash basis; interest on general capital indebtedness is on the cash basis; interest on utility capital indebtedness is on the accrual basis. Compensated absences are treated on a pay as you go basis with no amount charged to operations in the year incurred. Foreclosed Property -- Foreclosed property is recorded in the Current Fund at the assessed valuation when such property was acquired and is fully reserved. Interfunds -- 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 of Supplies - The cost of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The cost of inventories is not included on the various balance sheets. General Fixed Assets -- The entity has developed a fixed assets accounting and reporting system, as promulgated by the Division of Local Government Services, which differs in certain respects from generally accepted accounting principles. As required by New Jersey Statutes, foreclosed property is reported in the current operating fund of the municipality. Fixed assets used in governmental operations (general fixed assets) are accounted for in the General Fixed Assets Account Group. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, such as roads, bridges, curbs and gutters, streets and sidewalks and drainage systems are not capitalized. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for land which is valued at estimated market value on the date of acquisition. 22

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued Expenditures for long lived assets with an original cost in excess of $500.00 are capitalized. No depreciation has been provided for in the financial statements. Expenditures for construction in progress are recorded in the Capital funds until such time as the construction is completed and put into operation. Fixed assets acquired through grants in aid or contributed capital have not been accounted for separately. Levy of Taxes -- The County Board of Taxation certifies the tax levy of the municipality each year. The tax levy is based on the assessed valuation of taxable property within the municipality. Taxes are payable on the first day of February, May, August, and November. Any taxes that have not been paid by 11th day of the 11th month in the fiscal year levied are subject to being included in the tax sale and the lien enforced by selling the property in accordance with NJSA 54:5 et. seq. The municipality is responsible for remitting 100% of the school and county taxes to the respective agency. The loss for delinquent or uncollectible accounts is borne by the municipality and not the school district or county. Interest on Delinquent Taxes It is the policy of the Township of Fairfield to collect interest for the nonpayment of taxes or assessments on or before the date when they would become delinquent. The Tax Collector is authorized to charge eight percent (8%) per annum on the first $1,500.00 of taxes becoming delinquent after due date and eighteen percent (18%) per annum on any amount of taxes in excess of $1,500.00 becoming delinquent after due date and if a delinquency is in excess of $10,000.00 and remains in arrears beyond December 31st, an additional penalty of six percent (6%) shall be charged against the delinquency. There is a ten day grace period. Capitalization of Interest -- It is the policy of the Township of Fairfield to treat interest on projects as a current expense and the interest is included in the current operating budget. Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles or the statutory basis of accounting requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. D. Required Financial Statements The State of New Jersey requires the following financial statements to be presented for each fund on the regulatory basis of accounting: Balance Sheet, Statement of Operations and Changes in Fund Balance, Statement of Revenue and Statement of Expenditures. These statements differ from those presented under Generally Accepted Accounting Principles, which requires a Statement of Net Position and Statement of Activities in addition to the fund financial statements. E. Comparative Data Comparative total data for the prior year has been presented in the accompanying Balance Sheets and Statement of Operations in order to provide an understanding of changes in the entity's financial position. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in the Statement of Revenue-Regulatory Basis and Statement of Expenditures-Regulatory Basis since their inclusion would make the statements unduly complex and difficult to read. 23

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued F. Recent Accounting Pronouncements Not Yet Effective In June 2012, the Governmental Accounting Standards Board (GASB) issued Statement No. 68 Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27. This statement, which is effective for fiscal periods beginning after June 15, 2014, will not have any effect on the entity s financial reporting. However, the provisions of this statement will require significant modifications to the disclosure requirements related to the entity s proportionate share of the cost-sharing defined benefit plans reported at the State of New Jersey level. In January 2013, the Governmental Accounting Standards Board (GASB) issued Statement No. 69 Government Combinations and Disposals of Government Operations. This statement, which is effective for fiscal periods beginning after December 15, 2013, will not have any effect on the entity s financial reporting. In November 2013, Governmental Accounting Standards Board (GASB) issued Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68. The provisions of this statement are required to be applied simultaneously with the provisions of Statement 68 which is effective for periods beginning after June 15, 2014. The provisions of this statement will require significant modifications to the disclosure requirements related to the Borough s proportionate share of the cost-sharing defined benefit plans reported at the State of New Jersey level Note 2: BUDGETARY INFORMATION Under New Jersey State Statutes, the annual budget is required to be a balanced cash basis document. To accomplish this, the municipality is required to establish a reserve for uncollected taxes. The 2014 and 2013 statutory budgets included a reserve for uncollected taxes in the amount of $656,706.27 and $659,724.17. To balance the budget, the municipality is required to show a budgeted fund balance. The amount of fund balance budgeted to balance the 2014 and 2013 statutory budgets was $532,000.00 and $506,000.00. The Chief Financial Officer has the discretion of approving intra department budgetary transfers throughout the year. Inter department transfers are not permitted prior to November 1. After November 1 these transfers can be made in the form of a resolution and approved by The Township Committee. The following significant budget transfers were approved in the 2014 and 2013 calendar years: 24

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 NJSA 40A:4-87 permits special items of revenue and appropriations to be inserted into the annual budget when the item has been made available by any public or private funding source and the item was not determined at the time of budget adoption. During 2014 and 2013, the following significant budget insertions were approved: The entity may make emergency appropriations, after the adoption of the budget, for a purpose which was not foreseen at the time the budget was adopted or for which adequate provision was not made therein. This type of appropriation shall be made to meet a pressing need for public expenditure to protect or promote the public health, safety, morals or welfare or to provide temporary housing or public assistance prior to the next succeeding fiscal year. Emergency appropriations, except those classified as a special emergency, must be raised in the budgets of the succeeding year. Special emergency appropriations are permitted to be raised in the budgets of the succeeding three or five years. The entity approved a special emergency appropriation in 2009 and 2012 for $225,000.00 and $15,940.00. The emergencies were for a revaluation within the entity and the Master Plan. The unfunded balances as of December 31, 2014 are $0.00 and $9,564. Note 3: INVESTMENTS As of December 31, 2014 and 2013, the municipality held no investments. 25

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 4: CASH Custodial Credit Risk Deposits. Custodial credit risk is the risk that in the event of a bank failure, the government s deposits may not be returned to it. The municipality s policy is based on New Jersey Statutes requiring cash be deposited only in New Jersey based banking institutions that participate in the New Jersey Governmental Depository Protection Act (GUDPA) or in qualified investments established in New Jersey Statutes 40A:5-15.1(a) that are treated as cash equivalents. Under the act, all demand deposits are covered by the Federal Deposit Insurance Corporation (FDIC). Public funds owned by the municipality in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds or fund that may pass to the municipality relative to the happening of a future condition. As of December 31, 2014 and 2013, $0 of the municipality s bank balance of $2,626,008.88 and $2,717,823.61 was exposed to custodial credit risk. Note 5: FIXED ASSETS The following schedules are a summarization of the changes in general fixed assets for the calendar years ended December 31, 2014 and 2013: Note 6: SHORT-TERM OBLIGATIONS As of December 31, 2014 the entity has authorized but not issued bonds in the amount of $217,123.20. 26

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 Note 7: LONG TERM DEBT Long-term debt as of December 31, 2014 and 2013 consisted of the following: Outstanding bonds whose principal and interest are paid from the Current Fund Budget of the Township: $4,131,000 General Improvement Bond dated December 15, 2006 payable in annual installments through 2027. Interest is paid annually varying from 4.25% to 4.375% per annum. The balance remaining as of December 31, 2014 is $2,976,000.000. Schedule of Annual Debt Service for Principal and Interest for Bonded Debt and Issued and Outstanding 27

TOWNSHIP OF FAIRFIELD NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013 As of December 31, 2014 the carrying value of the above bonds and notes approximates the fair value of the bonds. No interest was charged to capital projects during the year and the total interest charged to the current budget was $132,525.02. Note 7: LONG TERM DEBT - Continued Summary of Statutory Debt Condition - Annual Debt Statement The summarized statement of debt condition which follows is prepared in accordance with the required method of setting up the Annual Debt Statement and indicates a statutory net debt of 0.964%. Net Debt $2,940,232.2 Equalized Valuation Basis per N.J.S.A. 40A:2-2 as amended, $305,148,554 = 0.964%. Borrowing Power Under N.J.S.A. 40A:2-6 as Amended Note 8: FUND BALANCES APPROPRIATED Fund balances at December 31, 2013 and 2012, which were appropriated and included as anticipated revenue in the respective fund for the year ending December 31, 2014 and 2013 were as follows: 2014 2013 Current Fund $ 532,000.00 506,000.00 28