Egg Harbor Township

SCHOOL DISTRICT

OF

EGG HARBO

R

TOWNSHIP

Egg Harbor Township Board of Education

Egg Harbor Township, New Jersey

Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2021

INTRODUCTORY SECTION Page

Letter of Transmittal 1-6

Organizational Chart 7

Roster of Officials 8

Consultants and Advisors 9

FINANCIAL SECTION

Independent Auditor's Report 10-12

Required Supplementary Information - Part I

Management's Discussion and Analysis 13-22

Basic Financial Statements

A District-wide Financial Statements:

A-1 Statement of Net Position 23

A-2 Statement of Activities 24

B Fund Financial Statement

Governmental Funds:

B-1 Balance Sheet 25

B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 26

B-3 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Funds to the Statement

of Activities 27

Proprietary Funds:

B-4 Statement of Net Position 28

B-5 Statement of Revenues, Expenses, and Changes in Net Position 29

B-6 Statement of Cash Flows 30

Fiduciary Funds:

B-7 Statement of Fiduciary Net Position N/A

B-8 Statement of Changes in Fiduciary Net Position N/A

Notes to the Financial Statements 31-60

TABLE OF CONTENTS

Required Supplemental Information - Part II Page

C Budgetary Comparison Schedules

C-1 Budgetary Comparison Schedule - General Fund 61-72

C-1a Combining Schedule of Revenues, Expenditures, and Changes

in Fund Balance - Budget to Actual N/A

C-1b Community Development Block Grant - Budget and Actual N/A

C-2 Budgetary Comparison Schedule - Special Revenue Fund 73-74

Notes to the Required Supplementary Information

C-3 Budget-to-GAAP Reconciliation 75

Required Supplementary Information - Part III

L Schedules Related to Accounting and Reporting for Pensions (GASB 68)

L-1 Schedule of the District's Proportionate Share of the Net Pension

Liability (PERS) 76

L-2 Schedule of District Contributions (PERS) 77

L-3 Schedule of the District's Proportionate Share of the Net Pension

Liability (TPAF) 78

M Schedules Related to Accounting and Reporting for OPEB (GASB 75)

M-1 Schedule of the District's Proportionate Share of the Net

OPEB Liability - PERS & TPAF 79

Other Supplementary Information

D School Based Budget Schedules

D-1 Combining Balance Sheet N/A

D-2 Blended Resource Fund - Schedule of Expenditures

Allocated by Resource Type - Actual N/A

D-3 Blended Resource Fund - Schedule of Blended

Expenditures - Budget and Actual N/A

E Special Revenue Fund:

E-1 Combining Schedule of Program Revenues and

Expenditures Special Revenue Fund - Budgetary Basis 80-82

E-2 Preschool Education aid Schedule of

Expenditures - Budgetary Basis 83

F Capital Projects Fund:

F-1 Summary Schedule of Project Expenditures 84

F-2 Summary Schedule of Revenues, Expenditures, and Changes

in Fund Balance - Budgetary Basis 85

F-2a -

F-2b Schedules of Project Revenues, Expenditures, Project Balance,

and Project Status - Budgetary Basis 86

G Proprietary Funds

Enterprise Fund:

G-1 Combining Statement of Net Position N/A

G-2 Combining Statement of Revenues, Expenses, and

Changes in Fund Net Position N/A

G-3 Combining Statement of Cash Flows N/A

TABLE OF CONTENTS (continued)

Page

Internal Service Fund:

G-4 Combining Statement of Net Position N/A

G-5 Combining Statement of Revenues, Expenses, and

Changes in Fund Net Position N/A

G-6 Combining Statement of Cash Flows N/A

H Fiduciary Funds:

H-1 Combining Statement of Fiduciary Net Position N/A

H-2 Combining Statement of Changes in Fiduciary Net Position N/A

H-3 Student Activity Agency Fund Schedule of Receipts and

Disbursements N/A

H-4 Payroll Agency Fund Schedule of Receipts and

Disbursements N/A

I Long-Term Debt:

I-1 Schedule of Serial Bonds 87

I-2 Schedule of Obligations under Capital Leases 88

I-3 Debt Service Fund Budgetary Comparison Schedule 89

STATISTICAL SECTION (Unaudited)

Introduction to the Statistical Section

Financial Trends

J-1 Net Position by Component 90

J-2 Changes in Net Position 91-93

J-3 Fund Balances - Governmental Funds 94

J-4 Changes in Fund Balances - Governmental Funds 95-96

J-5 General Fund Other Local Revenue by Source 97

Revenue Capacity

J-6 Assessed Value and Estimated Actual Value of Taxable Property98

J-7 Direct and Overlapping Property Tax Rates 99

J-8 Principal Property Taxpayers 100

J-9 Property Tax Levies and Collections 101

Debt Capacity

J-10 Ratios of Outstanding Debt by Type 102

J-11 Ratios of General Bonded Debt Outstanding 103

J-12 Direct and Overlapping Governmental Activities Debt 104

J-13 Legal Debt Margin Information 105

TABLE OF CONTENTS (continued)

Page

STATISTICAL SECTION (Unaudited) - continued

Demographic and Economic Information

J-14 Demographic and Economic Statistics 106

J-15 Principal Employers 107

Operating Information

J-16 Full-time Equivalent District Employees by Function/Program 108

J-17 Operating Statistics 109

J-18 School Building Information 110-111

J-19 Schedule of Required Maintenance Expenditures

by School Facility 112

J-20 Insurance Schedule 113-114

SINGLE AUDIT SECTION

K-1 Report on Internal Controls over Financial Reporting and on 115-116

Compliance and other Matters Based on an Audit of

Financial Statements Performed in Accordance with Government

Audit Standards

K-2 Report on Compliance with Requirements Applicable to

Each Major Program and on Internal Control Over 117-118

Compliance in Accordance with OMB Uniform Guidance

and New Jersey OMB Circular Letter 15-08

K-3 Schedule of Expenditures of Federal Awards, Schedule A 119

K-4 Schedule of Expenditures of State Financial Assistance,

Schedule B 120

K-5 Notes to the Schedules of Awards and Financial Assistance 121-123

K-6 Schedule of Findings and Question Costs

Part I - Summary of Auditor's Results 124-125

Part 2 - Schedule of Financial Statement Findings 126

Part 3 - Schedule of State Award Findings and Questioned Costs 126

K-7 Summary Schedule of Prior Audit Findings 126

TABLE OF CONTENTS (continued)

Introductory Section

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Egg Harbor Township Schools

www.eht.k12.nj.us

Administration Offices

13 Swift Drive

Egg Harbor Township, NJ 08234

Dr. Kimberly A. Gruccio Ms. Chandra D. Anaya, CPA

Superintendent Business Administrator/Board Secretary

February 21, 2022

Citizens, Honorable President and

Members of the Board of Education

Township of Egg Harbor School District

Atlantic County, NJ

The comprehensive annual financial report of the Egg Harbor Township School District (District) for the fiscal

year ended June 30, 2021 is hereby submitted. Responsibility for both the accuracy of the data and completeness

and fairness of the presentation, including all disclosures, rests with the management of the Board of Education

(Board). To the best of our knowledge and belief, the data presented in this report is accurate in all material respects

and is reported in a manner designed to present fairly the financial position and results of operation of the various

funds of the District. All disclosures necessary to enable the reader to gain an understanding of the District’s financial

activities have been included.

The comprehensive annual financial report is presented in four sections: introductory, financial, statistical and single

audit. The introductory section includes this transmittal letter, the District’s organizational chart and a list of principal

officials. The financial section includes the Management’s Discussion and Analysis, basic financial statements and

schedules, as well as the auditor’s report thereon. The statistical section includes selected financial and demographic

information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in

conformity with the provisions of the Single Audit Act Amendment of 1996 and the US Office of Management and

Budget Uniform Guidance, and the New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal

Grants, State Grants and State Aid Payments. Information related to this single audit, including the auditor’s report

on the internal control structure and compliance with applicable laws and regulations and findings and

recommendations, are included in the single audit section of this report.

1) REPORTING ENTITY AND ITS SERVICES: The Egg Harbor Township School District is a pre-

kindergarten through twelfth grade system of quality public education serving approximately 7,500 students.

There are three Pre-K facilities, (two outside partnerships with providers), two K to 3rd grade schools, one

4th and 5th grade school, two middle schools, and one high school that meets alternative school student

needs. The school district covers over 64 square miles and is considered the largest school district in Atlantic

County. Egg Harbor Township is home to a diverse population, with housing ranging from million-dollar

homes to federally funded housing units. The population consists of 42% white students, 23% Hispanic, 14%

Asian, 10% black, 11% multi-racial/other. District data shows that at least 55 different languages are spoken

in students’ homes.

The district is governed by a nine-member Board of Education elected at large. Their mission is to Embrace

students and their families, support the Engagement students with relevant learning resources in safe

learning environments, and provide an Education to students that contains rigorous and relevant 21st

Century Learning standards and best practices. These standards and best practices look to develop

academic scholarship, integrity, leadership, citizenship, and the unique learning style of each student while

encouraging them to develop a strong work ethic and to act responsibly in their school community and

everyday society. The district operates its own transportation, custodial, security, maintenance, technology,

and food service departments.

2) ECONOMIC CONDITION AND OUTLOOK: Historically, the casino industry has generated job

opportunities for residents. Economical changes and downfalls have caused the Atlantic County Economic

Alliance to focus on aviation. The Egg Harbor Township School District recognizes the new mission of the

Atlantic County Economic Alliance for business retention, business growth, and business attraction. They

are looking to form different partnerships that are molding schools to meet the future economic needs of

Atlantic County.

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The FAA Technical Center and the Atlantic City International Airport, located here in Egg Harbor Township,

along with the Embry Riddle Aeronautical University, are now focusing their efforts on building partnerships

with advanced aviation sciences and job opportunities for Atlantic County residents. The future job market

in this area has been predicted to increase from 2.1% to 19.5%.

3) MAJOR INITIATIVES: During the 2020-2021 school year the Egg Harbor Township School

District began to implement a focus on student success, social and emotional learning, S.T.R.E.A.M.

(Science, Technology, Reading, Engineering, Art, and Mathematics), climate and culture, and community

partnerships by implementing the following mission statement and district goals:

Mission Statement:

To build a culture and climate that embraces, engages and educates individual students

and their learning needs.

District Goals:

A. Improve Student Achievement – Prioritize Literacy for all; meet the social and emotional learning

needs of individuals; create innovative learning experiences with STREAM education.

B. Support Climate, Culture and #EHTPride – Administrators, teachers, students, parents and

community members will support positive learning environments, where all are recognized and

rewarded for achievement, progress, good character, work ethic and a respect for diversity. We

will continue to expand our school environment to focus on cultural proficiency, student agency,

and ensuring equity in our schools.

C. Enhance Community Pride – Reach out to the community by creating partnerships and cultivating

relationships with all stakeholders.

The district implemented a variety of program components and emphasized the use of student

achievement data in both the formative and summative forms as well as through local, state and federal

assessment tools and data. The Egg Harbor Township Board of Education and Administration continue to

navigate the challenging times in our 21

st

Century and we will work to prepare students for the vast global

society. We believe that this can be accomplished by building relationships with students and their families

where we look to embrace their needs, engage students by providing relevant learning experiences, and

offering an education that includes rigorous learning opportunities aligned with best practices and relevant

resources.

Curriculum and professional development activities:

The curriculum is standards-driven and aligned to the New Jersey Student Learning Standards. A

balanced literacy framework guides instruction in reading and writing. Math emphasizes problem -solving

and authentic investigations. Science is aligned to the Next Generation Science standards and

encompasses S.T.R.E.A.M. and the engineering design process. Social Studies is aligned to standards

and offers relevant learning opportunities. The World Language curriculum offers instruction in Latin,

German, Spanish, and French as well as a chance for students to earn a Seal of Biliteracy in their language

of choice and Global Learning experiences during a study abroad summer program. Physical Education,

Health, and Fine and Performing Arts are required courses for students to provide fitness, exploration, and

to reveal student talent. Career and Technical Education program provides courses in computer science

and programming, business, family and consumer science, industrial technology, engineering, and

aviation. Our high school offers four-year learning academies in Medical Science, Law and Business,

Communications, and Aviation. These academies offer relevant learning experiences in career related

courses and prepare students for higher education and career opportunities.

Professional Learning Communities (PLCs) provide time to collaborate to focus on student learning,

creation of common assessments, data analysis, and discuss strategies for improved student learning.

The District continues to use a modified version of the Charlotte Danielson Framework for Teaching

and Learning (as agreed upon through collaboration with the District Evaluation Advisory Committee).

Partnerships have been developed with Atlantic Cape Community College, Richard Stockton College of

NJ, and Rowan University for teacher preparation. Additional partnerships include Southern Regional

Institute & Educational Technology Training Center (SRI&ETTC) and online and on-site professional

development course offerings from New Jersey Education Association.

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Information Technology Services

HARDWARE:

● A district wide inventory of hardware with the focus of maintaining the minimum 2:1 student to computer

ratios across the District was performed This was accomplished via desktop computers and over

Chromebook utilizing the District WiFi network with approximately 99% coverage within the schools

with access to over 240 access points.

● Repairs tickets documented in the IT Direct application totaled over 1,100. The number of Help Desk

calls during the 2020-2021 school year totaled over 2,400.

● Focus shifted to support and growth of Hybrid and Remote Instruction due to COVID-19 and planning

for possible remote and hybrid instruction to continue for the 2021-2022 School Year. This included

planned projects such as Wi-Fi system upgrades and access points, upgrades to the Wide Area

Network, Fiber Backbone increase, and Internet Bandwidth Increase from 2Gbps to 5Gbps. To meet

remote learning and hybrid instruction demands, we also began increasing Wi-Fi Density with any

available access points.

● Continued replacement plan of District Data Network equipment such as Switching Devices and

Servers.

COMMUNICATIONS

● The district utilizes a combination of school messenger notification, the District and Building

Websites, social media, etc. to communicate emergencies, school events, informational

messages, etc.

ETTC:

● The district regularly conducts building level and district level technology and instructional training

in coordination and with the assistance of the professional development committee and

cooperation from the Southern New Jersey Regional Educational Technology Training Center

(ETTC). During the 2020-2021 school year, we fully utilized the hours attributed to our district.

EHT TV2:

● The community/district broadcast channel, EHT TV2 has continued to provide excellent

programming 2020-2021 school These productions range from various High School sports and

performing arts productions, informative sessions such as the “Pursuing Public Health” and

township productions such as the “Mayor’s Forum” and the filming of town hall meetings.

● The department utilizes the Telvue Video Message Board System and digital video servers for

video programming. This also includes PEGTV video archives for distribution on the internet, live

internet distribution of the EHTTV2 video channels and other emergency management features

through the new interface. During the 2020-2021 school year, EHT TV2 responded quickly to

emergency snow closures, township notifications and information, as well as school events and

programming.

● The department utilizes other forms of communication for marketing, productions, and other

district events, and student, parent, and staff training such as; YouTube, Facebook, and other

social media services.

SOFTWARE/ASSESSMENTS/NJSLA:

● Support of software assessments used for Benchmark assessments and other testing such as

WIDA ELL, DLM, etc.

SECURITY:

● Installation of new school vestibule visitor door camera/buzzer visitor system.

.

NJSMART (NJ Standards Measurement and Resource for Teaching)

●

Successfully completed, with no errors, all NJ Smart Reporting requirements such as Fall

Submissions, Staff Submission, Evaluations, Course Roster, etc.

STUDENT INFORMATION SYSTEM:

● Standard support and upgrades of Infinite Campus were conducted throughout the 2020-2021

school year. This included implementation of the Online Registration System.

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Extended Enrichment

The Office of Extended Enrichment K-5 is a newly created department within the district that implements

and oversee the before and after school programs, Talent and Learning of NextGen Students and the

After School Program for Instruction, Recreation and Enrichment. Both programs employ caring and

nurturing school day teachers and paraprofessionals as well as community members and offer homework

help a variety of extended enrichment opportunities that are aligned with school-day curricula.

T.A.L.O.N.S. Talent and Learning of NextGen Students, T.A.L.O.N.S., is the district’s fee for service

before and after school enrichment program for Kindergarten through fifth grades. T.A.L.O.N.S. operates

every day that school is open including ½ days. The hours of operation are 6:30am until the start of school

at three locations. After school sessions begin at the end of the school day until 6:00pm at one location,

the Dr. Joyanne D. Miller Elementary School. T.A.L.O.N.S includes an 8-week summer camp component

which offers weekly themes and includes Science, Technology, Engineering, Reading, Art, Math,

Sports/Recreation and Cooking classes as well as weekly off-site educational field trips. T.A.L.O.N.S.

participants are provided a complete supper meal through our partnership with the Community Food Bank

of New Jersey and the Child and Adult Care Food Program funded by the USDA at no additional cost to

the family. Average daily attendance for before and after school sessions is approximately 125 students

each.

A.S.P.I.R.E.

The Egg Harbor Township School District has implemented a comprehensive after school program funded

by the 21st Century Community Learning Center grant at one location, the Dr. Joyanne D. Miller

Elementary School and serves a minimum of 250 students in grades 4th and 5th. The After School

Program for Instruction, Recreation, & Enrichment aka A.S.P.I.R.E offers academic remediation;

homework help and tutoring, academic enrichment, health, nutrition and fitness education, culture and the

arts, positive youth development and a parental involvement component.

A.S.P.I.R.E. employs school day and district staff in order to align itself with school and district goals and

initiatives, including "Literacy for All" and STREAM. A.S.P.I.R.E. incorporates curriculum from several

sources including Too Good for Drugs and Violence, NASA, and Engineering is Elementary. Science,

Technology and Math are infused across the curriculum as we are a STREAM themed program.

A.S.P.I.R.E. operates on most days that school is open and running on a full day schedule as well as in

the summer. The goals of this summer camp experience is to prevent “summer slide” and offers one hour

each of English Language Arts and Math enrichment as well as organized recreation, art and technology.

Summer camp operates four days a week, Monday through Thursday, five hours a day for four weeks and

includes off-site educational field trips as well as breakfast and lunch at no cost to the family through our

partnership with the Community Food Bank of New Jersey and the Child and Adult Care Food Program

funded by the USDA.

Perkins/CTE Grant Implementation

Perkins is a federal education program that invests in secondary career and technical education (CTE)

programs. The purpose is to increase learner access to high skill, high wage, and in demand occupations.

FY 2021 Perkins/CTE funds paid for program supplies and professional development opportunities for

staff. The current programming includes Graphics Design, Web Design, CAD/Engineering,

Telecommunications and Networking, Business Administration, Child Development, and Culinary Arts.

Individuals with Disabilities Education Act (IDEIA) Grant Implementation

FY 2021 IDEIA funds paid for in out of district tuition placements for EHT disabled students from preschool

through grade 12. Funds were also used to pay for substitutes for teachers to attend annual review

meetings as well as to provide for CST services throughout the summer and to fund the Extended School

Year program for those students who exhibit significant regression and require a long time to recoup the

information.

IDEA funds also were used to pay for professional development in the area of literacy and reading

instruction for middle and high school special education staff and for Crisis Prevention training (CPI) of all

new special education staff.

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ESSA-NCLB Grant Implementation

An ESSA-NCLB program team facilitated the grant application development as well as program

articulation, implementation, and supervision under Title I, II-A, III and III-Immigrant. Student achievement

goals focused on the improvement of learning for the identified at-risk population in the areas of English

Language Arts (ELA) and Mathematics.

Below are some focused programs funded by ESSA-NCLB funds approved by the Board of

Education:

1. Two part-time Title 1 teachers were hired to service students at Alder Avenue and Fernwood

Avenue Middle Schools in the areas of ELA and Math. This additional personnel addressed

learning gaps and needs for students who transitioned from Title 1 programs in elementary school

into middle school.

2. Title I parent coordinators were hired at Davenport Primary/Elementary School and Miller

Elementary School to educate Title I parents regarding the reading and math curricula and pacing

guides in each grade level. They also instructed parents in NJSLA, helping children with

homework, and how to meaningfully participate in parent-teacher conferences. Mandated Title I

Needs Assessment, Parent-Student-Teacher compact, Parent’s Right to Know and

District/Building Board Policies on Parental Involvement were also discussed and received

parental input.

3. The Egg Harbor Township ESSA/NCLB website was improved to increase parent, teacher,

student and administrator knowledge of ESSA/NCLB. NJSLA results and Understanding NJSLA

results, as well as, the addition of Google translate for parents who are non-English speakers and

other academic websites were updated to increase parent participation and knowledge of

ESSA/NCLB, along with various resources. NJSLA information increases parental awareness of

the standards and test skills needed by their children.

Title IIA funds were utilized for professional development activities and supplies. Activities covered areas

specific to math and ELA, and data analysis.

Title III funds were utilized to pay for two split funded English Language Learners (ELL) teachers as well

as for instructional supplies. During 2019-2020, ELL students district-wide, received ELL services

consistent with Title III. We continue to implement a four year “cycle” for coursework with ELL high school

students. This is designed to help ELL students meet required state test standards as well as the revised

WIDA standards which are assessed by the ACCESS testing, additional state testing for ELL students.

4) INTERNAL ACCOUNTING CONTROLS: Management of the District is responsible for establishing

and maintaining internal controls designed to ensure that the assets of the District are protected from loss,

theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of

financial statements in conformity with generally accepted accounting principles (GAAP). Internal control

is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept

of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to

be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

As a recipient of federal awards and state financial assistance, the District also is responsible for ensuring

that an adequate internal control structure is in place to ensure compliance with applicable laws and

regulations related to those programs. This internal control structure is also subject to periodic evaluation

by the District management.

As part of the District’s single audit described earlier, tests are made to determine the adequacy of the

internal control structure, including that portion related to federal awards and state financial assistance

programs, as well as to determine that the District has complied with applicable laws and regulations.

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5) BUDGETARY CONTROLS: In addition to internal accounting controls, the District maintains

budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions

embodied in the annual appropriated budget approved by the voters of the municipality. Annual

appropriated budgets are adopted for the general fund, the special revenue fund, and the debt service

fund. Project-length budgets are approved for capital improvements accounted for in the capital projects

fund. The final budget amount as amended for the fiscal year is reflected in the financial section.

An encumbrance accounting system is used to record outstanding purchase commitments on a line item

basis. Open encumbrances at year-end are either canceled or are included as re-appropriations of fund

balance in the subsequent year. Those amounts to be re-appropriated are reported as reservations of

fund balance at June 30, 2021.

6) ACCOUNTING SYSTEM AND REPORTS: The District’s accounting records reflect generally accepted

accounting principles, as promulgated by the Governmental Accounting Standards Board (GASB). The

accounting system of the District is organized on the basis of funds and account groups. These funds and

account groups are explained in “Notes to the Financial Statements,” Note 1.

7) DEBT ADMINISTRATION: At June 30, 2021, the District’s outstanding debt issues included

53,920,000 in bonds. The proceeds of these bond issues were to provide funds for capital improvement to

the District’s buildings. These improvements include repairs and renovations to the High School, Davenport,

Slaybaugh and Swift elementary schools, additions to the High School and Swift elementary school, the

construction of two new elementary schools as well as another addition to the High School, boiler and chiller

replacements, window replacements, roof replacements, solar panel installation, upgrades to the high school

athletic complex, and the construction of a fueling canopy.

8) OTHER INFORMATION:

Independent Audit – State statutes require an annual audit by independent certified public accountants or

registered municipal accountants. The accounting firm of Ford, Scott & Associates, LLC, CPAs was selected

by the Board. In addition to meeting the requirements set forth in state statutes, the audit also was designed

to meet the requirements of the Single Audit Act of 1996 and the related OMB Uniform Guidance and New

Jersey OMB Circular 15-08. The auditor’s report on the general-purpose financial statements and combining

and individual fund statements and schedules are included in the financial section of this report. The auditor’s

reports related specifically to the single audit are included in the single audit section of this report.

9) ACKNOWLEDGMENTS: We would like to express our appreciation to the members of the Egg

Harbor Township Board of Education for their concern in providing fiscal accountability to the citizens and

taxpayers of the school district and thereby contributing their full support to the development and

maintenance of our financial operations. The preparation of this report could not have been accomplished

without the efficient and dedicated services of our financial and accounting staff.

Respectfully submitted,

Kimberly A. Gruccio, Ed. D. Chandra D. Anaya, CPA

Superintendent School Business Administrator/

Board Secretary

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7

Term

Members of the Board of Education

Expires

Pete Castellano, President 2021

Tamika Gilbert-Floyd, Vice President 2023

Terre Alabarda 2021

Kristi Bird 2021

Lou Della Barca 2022

Patrick Ireland 2023

Michael Price 2023

Marita Sullivan 2022

Barbara Szilagyi 2021

Other Officials

Kimberly Gruccio, Ed.D., Superintendent

Chandra D. Anaya, CPA, Board Secretary/Business Administrator

Amy Houck-Elco, Esq., Solicitor

EGG HARBOR TOWNSHIP BOARD OF EDUCATION

EGG HARBOR TOWNSHIP, NEW JERSEY

ROSTER OF OFFICIALS

June 30, 2021

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Architect

Fraytak Veisz Hopkins Duthie, PC

1515 Lower Ferry Rd.

Ewing, NJ 08616

Audit Firm

Ford Scott & Associates, LLC

Certified Public Accountants

1535 Haven Avenue

Ocean City, NJ 08226

Attorney

Cooper Levenson April Neidleman Wagenheim

1125 Atlantic Avenue

Atlantic City, NJ 08401

Bond Counsel

Wilentz, Goldman & Spitzer, P.A.

90 Woodbridge Center Drive

Woodbridge, NJ 07095

Official Depository

OceanFirst Bank

1184 Ocean Heights Avenue/3003 Fire Road

Egg Harbor Township, NJ 08234

EGG HARBOR TOWNSHIP BOARD OF EDUCATION

Consultants and Advisors

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Financial Section

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

Independent Auditor’s Report

Honorable President and

Members of the Board of Education

Egg Harbor Township School District

County of Atlantic, New Jersey

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type

activities, each major fund, and the aggregate remaining fund information of the Egg Harbor Township

School District, Egg Harbor Township, New Jersey, as of and for the fiscal year ended June 30, 2021,

and the related notes to the financial statements, which collectively comprise the District’s basic financial

statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; 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 audit requirements as prescribed by the Office of School

Finance, Department of Education, State of New Jersey. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free from

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing and 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.

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

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

audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, the business-type activities, each major fund,

and the aggregate remaining fund information of the Egg Harbor Township School District, Egg Harbor

Township, New Jersey, as of June 30, 2021, and the respective changes in financial position and, where

applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles

generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s

Discussion and Analysis and Budgetary Comparison Information identified in the table of contents be

presented to supplement the basic financial statements. Such information, although not a part of the

basic financial statements, is required by the Governmental Accounting Standards Board who considers it

to be an essential part of financial reporting for placing the basic financial statements in an appropriate

operational, economic, or historical context. We have applied certain limited procedures to the required

supplementary information in accordance with auditing standards generally accepted in the United States

of America, which consisted of inquiries of management about the methods of preparing the information

and comparing the information for consistency with management’s responses to our inquiries, the basic

financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited

procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively

comprise the Egg Harbor Township School District’s basic financial statements. The introductory section,

combining and individual nonmajor fund financial statements, schedule of expenditures of federal awards,

as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,

Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the schedule of state

financial assistance as required by NJ OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal

Grants, State Grants and State Aid, and statistical information are presented for purposes of additional

analysis and are not a required part of the basic financial statements.

The introductory section, combining statements, and individual nonmajor fund financial statements,

schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part

200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

(Uniform Guidance), the schedule of state financial assistance as required by NJ OMB’s Circular 15-08,

and statistical information 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. In our opinion, the combining and

individual nonmajor fund financial statements, schedule of expenditures of federal awards, as required by

Title 2 U.S. Code of Federal Regulations Part 200, Uniform Admini

strative Requirements, Cost Principles,

and Audit Requirements for Federal Awards (Uniform Guidance), the schedule of state financial

assistance as required by NJ OMB’s Circular 15-08 is fairly stated, in all material respects, in relation to

the basic financial statements as a whole.

11



The introductory and statistical sections have 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.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated February 21,

2022 on our consideration of the Egg Harbor Township School District'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 Egg Harbor

Township School District’s internal control over financial reporting and compliance.

Very truly yours,

Ford, Scott & Associates, L.L.C.

FORD, SCOTT & ASSOCIATES, L.L.C.

CERTIFIED PUBLIC ACCOUNTANTS

Leon P. Costello

Certified Public Accountant

Licensed Public School Accountant

No. 767

February 21, 2022



12

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Required Supplementary Information

Part I

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

MANAGEMENT’S DISCUSSION AND ANALYSIS

This section of the Egg Harbor Township School District (“District”) annual financial report

presents our discussion and analysis of the District’s financial performance during the fiscal year

that ended on June 30, 2021. Please read it in conjunction with the transmittal letter at the front

of this report and the District’s financial statement.

FINANCIAL HIGHLIGHTS

 In the District’s Governmental Activities, the net position of the District increased

$5,098,948. This increase is the result of the District realizing revenues in excess of

expenditures. The State of New Jersey continued to defer both June state aid payments

until July 2021.

 The State of New Jersey reimbursed the District $19,427,455 during the fiscal year

ended June 30, 2021 for the employer’s share of social security contributions and

pension contributions for TPAF members as calculated on their base salaries. Also, the

State of New Jersey paid $4,728,904 on behalf of the District for TPAF Post-Employment

Benefits Contributions. These amounts, which are not budgeted, are included as both a

revenue and appropriation in the financial statements.

 In accordance with New Jersey State Statutes, the unassigned fund balance of the

general fund is limited to the greater of 4% of the total general fund expenditures or

$250,000. Any excess is required to be designated as Restricted Fund Balance –

Excess Surplus and included in next year’s budget as budgeted fund balance. As of

June 30, 2021 the District had excess surplus of $6,554,012, or approximately 4.7% of

the district’s general fund budget, of which $5,596,864 was applied to the 2021-22

budget.

 During the fiscal year ended June 30, 2021, the District’s General Fund revenue realized

was $2,060,292 more than total expenditures. The District realized more revenue due to

unanticipated tuition revenue, unanticipated miscellaneous revenue, as well as an

increase in property tax revenue. The District’s 2020-21 budget anticipated using

$3,000,000 of surplus.

 In the District’s business-type activities, net position increased $312,779 during fiscal

year 2021 as compared to a net decrease of $358,738 in fiscal year 2020. The increase

is attributable to the increase in Federal and State reimbursement rates as well as

increased participation. There was an increase because of the SSO program allowing all

students to eat breakfast and lunch at school at no cost. The Enterprise Fund also

includes the T.A.L.O.N.S. latchkey program which operated at a profit of $164,851 for the

fiscal year ended June 30, 2021. During 2020 the District created a new enterprise fund

titled Eagle Enterprises as an extension of the school store but it hasn’t been able to fully

operate due to COVID. The District anticipates revenue generation for the 22/23 school

year.

{This space intentionally left blank}

13

OVERVIEW OF THE FINANC

IAL STATEMENTS

This annual report consists of four parts – management’s discussion and analysis (this section),

the basic financial statements, required supplementary information, and an optional section that

presents combining statements for special revenue, proprietary, and fiduciary funds. The basic

financial statements include two kinds of statements that present different views of the District.

 The first two statements are government-wide financial statements that provide

both

long-te

rm and short-term information about the District’s overall financial status.

 The remaining statements are fund financial statements that focus on individual parts of

the District’s government, reporting on the District’s operations in more detail than

the

govern

ment-wide statemen

ts.



The governmental funds statements tell how general government services like

instruction were financed in the short term as well as what remains for futur

e

spe

nding

.

 Propri

etary fund statements offer short- and long-term financial information abo

ut

the ac

tivities the District operates like businesses, such as the food service area.

 Fiduciary fund statements provide information about the financial relationships –

like the unemployment trust fund – in which the District acts solely as a trustee or

agent for the benefit of others, to whom the resources in question belong.

The financial statements also include notes that explain some of the information in the financial

statements and provide more detailed data. The statements are followed by a section of required

supplementary information that further explains and supports the formation in the financial

statements. The following schedule shows how the required parts of this annual report are

arranged and relate to one another.

The following table summarizes the major features of the District’s financial statements, including

the portion of the District’s government they cover and the types of information they contain. The

remainder of this overview section of management’s discussion and analysis explains the

structure and contents of each of the statements.

{This space intentionally left blank}

14

Ma

j

or Features of E

gg

Harbor Township Board of Education’s

Government-wide and Fund Financial Statements

Fund Statements

Government wide Governmental Proprietar

y

Fiduciar

y

Statements Funds Funds Funds

Scope Entire District

(except fiduciary

funds)

The activities of

the District that

are not

proprietary or

fiduciary, such as

food service and

student activities

Activities the

District operates

similar to private

businesses; food

service and

latchkey

Instances in which

the District is the

trustee or agent for

someone else’s

resources, such as

payroll agency and

student activities.

Required

financial

statements

Statement of net

position

Statement of

activities

Balance sheet

Statement of

revenues,

expenditures,

and changes in

fund balances

Statement of net

position

Statement of

revenues,

expenses, and

changes in net

position

Statement of

cash flows

Statement of

fiduciary net position

Statement of

changes in fiduciary

net position

Accounting basis

and

measurement

focus

Accrual accounting

and economic

resources focus

Modified accrual

accounting and

current financial

resources focus

Accrual

accounting and

economic

resources focus

Accrual accounting

and economic

resources focus

Type of

asset/liability

information

All assets and

liabilities, both

financial and capital,

and short-term and

long-term.

Only assets

expected to be

used up and

liabilities that

come due during

the year or soon

thereafter; no

capital assets

included.

All assets and

liabilities, both

financial and

capital, and

short-term and

long-term.

All assets and

liabilities, both short-

term and long-term.

Type of

inflow/outflow

information

All revenues and

expenses during the

year, regardless of

when cash is

received or paid.

Revenues for

which cash is

received during

or soon after the

end of the year;

expenditures

when goods or

services have

been received

and payment is

due during the

year or soon

thereafter

All revenues and

expenses,

regardless of

when cash is

received or paid.

All revenues and

expenses during

year, regardless of

when cash is

received or paid.

15

Gover

nment-wide Statements

The government-wide statements report information about the District as a whole using

accounting methods similar to those used by private-sector companies. The statement of net

position includes all of the government’s assets and liabilities. All of the current year’s revenues

and expenses are accounted for in the statement of activities regardless of when cash is received

or paid.

The two government-wide statements report the District’s net position and how it has changed.

Net position – the difference between the District’s assets and liabilities – is one way to measure

the District’s financial health, or position.

 Over time, increases or decreases in the District’s net position are an indicator of whethe

r

its financi

al health is improving or deteriorating, respectively.

 To assess the overall health of the District you need to consider additional nonfinancial

factors such as changes in the Township’s property tax base and the condition of the

District’s facilities

.

The government-wide financial statements of the District are divided into two categories:

 Governmental activities – most of the District’s basic services are included here, such as

instruction, transportation, administration, and plant operations. Property taxes and

state

and federal grants finance most of these activities.

 Busine

ss-type activities – the District charges fees to customers to help it cover the cost

s

of

certain services it provides. The District’s food service and latchkey programs ar

e

included here.

Fund Financial Statements

The fund financial statements provide more detailed information about the District’s most

significant funds – not the District as a whole. Funds are accounting devices that the District uses

to keep track of specific sources of funding and spending for particular purposes.

The District has three kinds of funds:

 Governmental funds – Most of the District’s basic services are included in governmental

funds, which focus on (1) how cash and other financial assets that can readily be

converted to cash flow in and out and (2) the balances left at year-end that are avail

able

for

spending. Consequently, the governmental funds statements provide a detaile

d

s

hort-term view that helps you determine whether there are more or fewer financial

resources that can be spent in the near future to finance the District’s programs

.

Becau

se this information does not encompass the additional long-term focus of t

he

govern

ment-wide statements, we provide additional information at the bottom of the

governmental funds statement that explains the relationship (or differences) between

them.

 Propri

etary funds –

Services for which the District charges customers a fee are generally

reported in proprietary funds. Proprietary funds, like the government-wide statements,

provide both long- and short-term financial information. In fact, the District’s enterpris

e

funds

(one type of proprietary fund) are the same as its business-type activities, but

provide more detail and additional information, such as cash fl

ows.

FINANCI

AL ANALYSIS OF THE DISTRICT AS A WHOLE

Net position. During the 2020-2021 school year, net position for governmental activities

increased by $5,098,948. This net increase is due to the overall increase in revenue, in particular

property taxes levied on properties within the District offset by depreciation expense. The

16

expenditures of the District remained stable between the 2021 and 2020 fiscal years. The

financial condition of the District, excluding depreciation expense, improved during the 2021 fiscal

year with $957,148 in excess fund balance available to apply to the 2023 fiscal year budget.

The business-type activities net position increased due to an excess of revenue over expenses

primarily in the Food Service and Latch Key Programs.

Business- Business-

Governmental T

y

pe Total Governmental T

y

pe Total

A

ctivities

A

ctivities 2021

A

ctivities

A

ctivities 2020

Current and other

assets $20,666,592 983,169 21,649,761 $15,400,658 688,815 16,089,473

Capital assets 153,474,640 215,826 153,690,466 158,699,701 205,422 158,905,123

Total assets 174,141,232 1,198,995 175,340,227 174,100,359 894,237 174,994,596

Deferred outflows

of resources 9,158,713 9,158,713 11,264,135 11,264,135

Long-term

liabilities 97,317,299 65,754 97,383,053 108,539,329 60,268 108,599,597

Other liabilities 5,183,815 177,234 5,361,049 3,749,236 188,415 3,937,651

Total liabilities 102,501,114 242,988 102,744,102 112,288,565 248,683 112,537,248

Deferred inflows

of resources 15,668,856 15,668,859 14,934,446 14,934,446

Net position

Invested in

capital assets 94,979,615 215,826 95,195,441 91,851,310 205,422 92,056,732

Restricted 10,145,466 10,145,466 473,736 473,736

Unrestricted

(

39,995,106

)

740,181

(

39,254,925

)

(

34,183,563

)

440,132

(

33,743,431

)

Total net

position $65,129,975 957,007 66,085,982 $58,141,483 645,554 58,787,037

Changes in net position. The total governmental activities revenue of the District increased by

$26,854,582 when compared to the prior fiscal year. During the 2021 fiscal year, the District

realized an increase in taxes levied on the property owners of the Township and an increase in

the revenue recognized related to the implementation of GASB 68 and GASB 75. The local tax

levy is 43.24% of total revenues. The municipality levies this tax on properties located in the

Township and remits the collections on a monthly basis to the District.

Approximately 25.92% of the District’s revenue comes from the State of New Jersey in the form

of non-restricted state aid. This aid is based on the District’s enrollment as well as other factors.

The District expenses are primarily related to instruction, administration, and plant operations.

17

Governmental Activities

2021

2020

A

moun

t

Percenta

g

e

A

moun

t

Percenta

g

e

Propert

y

taxes 86,609,104 43.24% 85,038,452 49.03%

Federal and State aid

Unrestricted 51,909,524 25.92% 49,285,702 28.42%

Restricted 3,242,453 1.62% 3,235,262 1.87%

Tuition 634,522 0.32% 586,091 0.34%

Operatin

g

rants and

Contributions 57,439,295 28.68% 34,423,905 19.84%

Other 455,752 0.22% 866,656 0.50%

Totals 200,290,650 100.00% 173,436,068 100.00%

The following schedule summarizes the governmental and business-type activities of the District

during the 2021 and 2020 fiscal years.

Govern- Business- Govern- Business-

Mental T

y

pe 2021 Mental T

y

pe 2020

A

ctivities

A

ctivities Total

A

ctivities

A

ctivities Total

Revenues

Pro

g

ram revenue

Char

g

es for srvs $634,522 339,282 973,804 $586,091 982,751 1,568,842

Federal

g

rants 7,764,118 2,836,528 10,600,646 4,274,627 1,657,762 5,932,389

State grants and

Entitlements 49,675,177 77,447 49,752,624 30,149,278 30,414 30,179,692

General revenues

Propert

y

taxes 86,609,104 86,609,104 85,038,452 85,038,452

State aid

Entitlements 55,151,977 55,151,977 52,520,964 52,520,964

Other 455,752 3,411 459,163 866,656 9,658 876,314

Total revenues 200,290,650 3,256,668 203,547,318 173,436,068 2,680,585 176,116,653

{This spac

e intentionally left blank}

18

Govern- Business- Govern- Business-

mental T

y

pe 2021 mental T

y

pe 2020

A

ctivities

A

ctivities Total

A

ctivities

A

ctivities Total

Expenses

Instruction:

Re

g

ular $78,713,191 78,713,191 $67,402,875 67,402,875

Special Education 21,697,686 21,697,686 17,807,976 17,807,976

Other special instr. 4,442,135 4,442,135 3,769,208 3,769,208

Other Instruction 2,408,302 2,408,302 2,328,317 2,328,317

Nonpublic school

pro

g

rams 190,591 190,591 170,125 170,125

Support services:

Tuition 1,822,358 1,822,358 5,041,378 5,041,378

Student & instr

related services 32,782,700 32,782,700 29,799,591 29,799,591

School admin srvs 8,926,174 8,926,174 7,417,681 7,417,681

General & business

admin services 5,986,623 5,986,623 5,143,538 5,143,538

Plant operations &

maintenance 22,093,289 22,093,289 18,960,802 18,960,802

Pupil transpor

t

13,349,402 13,349,402 13,712,720 13,712,720

Interest on Lon

g

Term De

bt 2,779,251 2,779,251 3,114,493 3,114,493

Business-t

y

pe

A

ctivities 2,946,215 2,946,215 3,079,323 3,079,323

Total expenses 195,191,702 2,946,215 198,137,917 174,668,704 3,079,323 177,748,027

Excess/

(

Deficit

)

Before special

Items 5,098,948 310,453 5,409,401

(

1,232,636

)

(

398,738

)

(

1,631,374

)

Special items - - - - - -

Increase/

(

Decrease

)

in net position 5,098,948 310,453 5,409,401

(

1,232,636

)

(

398,738

)

(

1,631,374

)

Business-type Activities

Operating

revenues of the District’s business-type activities decreased $643,469 from the

previous year while expenses decreased by $133,108. Factors contributing to these results

included:

 Increased participation in the food service program with an increase in reimbursed rates

for each meal from both the State and Federal Program. The T.A.L.O.N.S. program also

functioned more efficiently during COVI

D.

FINA

NCIAL ANALYSIS OF THE DISTRICT’S FUNDS

For of the year ended June 30, 2021, the governmental funds reported a combined fund balance

of $16,588,783, which is $1,799,420 higher than the beginning of the year. This increase is due

to additional revenues realized during the fiscal year, in particular additional taxes and tuition

revenue, offset by current year expenditures.

The business-type enterprise fund reported a combined net position of $956,007 as of June 30,

2021. This is $310,453 higher than the prior fiscal year.

19

General Fund Budgetary Highlights

As further explained in the Notes to the Financial Statements, annual appropriated budgets are

prepared in the spring of each year for the general, special revenue and debt service funds. The

budgets are submitted to the County office and, as a Type II School District that has elected to

have November elections, requires approval by the voters only when statutory limits are

exceeded. Transfers of appropriations may be made by Board resolution at any time during the

fiscal year and are subject to two-thirds majority vote by the board and under certain

circumstances require approval by the County Executive Superintendent of Schools. The District

is permitted to encumber funds throughout the year for purchases ordered but not yet received.

Any open encumbrances as of June 30

th

carry over to the next fiscal year and are added to the

appropriation reflected in the certified budget.

After adjusting total revenue reported on Exhibit C-1 for the Reimbursed TPAF Social Security

Contribution and on-behalf TPAF Pension Contributions, which are not budgeted, the District’s

budgeted revenue exceeded the actual by $1,847,478. This is a result of additional extraordinary

aid as well as realizing additional miscellaneous revenue and tuition offset by a decrease in state

aid after the budget was adopted. Again, after adjusting for the Reimbursed TPAF Social

Security Contribution, on-behalf TPAF Pension Contributions and capital leases, actual

expenditures were below the budgeted appropriations by $6,546,948. The most significant

variances occurred as a result of the continued decreases in tuition costs to special services

school districts, savings in energy costs, decreases in transportation costs, and decreases in

employee health benefits.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At the end of 2021, the District had invested $153,690,466, net of accumulated depreciation, in a

broad range of capital assets, including land, buildings, vehicles and machinery. This amount

represents a net decrease (including additions and deductions) of $5,214,657, or 3%, over last

year. The decrease is due largely to current year depreciation expense.

Govern- Business- Govern- Business-

Mental T

y

pe 2021 Mental T

y

pe 2020

Activities

Activities Total

A

ctivities Activities Total

Land $1,836,300 1,836,300 $1,836,300 1,836,300

Const in

Pro

g

ress 757,169 757,169 1,142,940 1,142,940

Buildin

g

s &

Bld

g

improv 140,393,781 140,393,781 146,226,987 146,226,987

Machiner

y

&

equipmen

t

3,621,391 183,259 3,804,651 3,519,766 205,422 3,725,188

Vehicles 6,865,999 32,566 6,898,565 5,973,708 5,973,708

Total $153,474,640 215,826 153,690,466 $158,699,701 205,422 158,905,123

20

Long-term Debt

All bonds are authorized in accordance with State law by the voters of the District. At the end of

the current fiscal year, the District had total bonded debt outstanding of $53,920,000 and

obligations under capital leases of $4,575,025.

Balance Retired/ Balance

6/30/20 Issued

A

d

j

usted 6/30/21

Governmental Activities:

Bonds pa

y

able 60,250,000 6,330,000 53,920,000

Obli

g

ations under

Capital leases 6,598,391 2,023,366 4,575,025

Compensated absences

Pa

y

able 1,327,130 236,404 79,696 1,483,838

Prem on Refundin

g

Bonds 1,943,012 112,831 1,830,181

Net Pension Liabilit

y

38,420,796 2,912,541 35,508,255

Total Governmental Activities 108,539,329 236,404 11,458,434 97,317,299

Business-T

y

pe Activities

Compensated absences

Pa

y

able 60,268 9,799 4,313 65,754

Total Business-T

y

pe Activities 60,268 9,799 4,313 65,754

Total 108,599,597 246,203 11,462,747 97,383,053

More detailed information about the District’s long-term debt is presented in the notes to the

financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

The district’s 2021-22 tax levy was not required to be approved by the voters due to the district

moving the annual election to November, in accordance with State statute. The statute provides

districts the option to move their school elections to the general election in November, and tax

levies within the statutory cap. The 2021-22 tax levy is $81,038,032, which is equal to the levy

due to the District for 2020-2021 creating banked cap. The District’s 2021-2022 state aid of

$59,945,704 increased by $9,872,997 from the 2020-21 amended allocation due to additional

funding required to ensure fair funding.

In addition, the district’s share of state aid continues to be reduced because of revenue growth

caps. The 2020-21 state aid calculated and uncapped should be $74,341,720, but the actual aid

received was $50,072,707. For 2021-22, state aid calculated and uncapped should be

$76,756,483, but the actual aid received was $59,945,704. Under the school funding formula, the

required local share to be raised by taxes for 2020-21 was $64,481,174 and $62,925,420 for

2021-22. The actual tax levy was $81,038,032 for each year, which reflects an additional tax

burden to the local tax payers.

The housing market and economy have stabilized over the past few years. In 2020-21, district

began operating full day kindergarten program versus the historical half day program as well as

implementing full day preschool. The District is expanding free preschool for 3 and 4-year-old

students annually with preschool funding from the State for general education students and the

local budget providing funding for special education preschool students.

EFFECTS OF COVID-19 ON THE DISTRICT’S OPERATIONS

There has been a significant delay in learning and the District recognizes the making up the

learning loss in our students due to school virtual and hybrid learning for about a year. This will

21

require additional intervention and resources to support the students during afterschool and

summers for years to come.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to present users (residents, receiving districts, and creditors) with

a general overview of the District’s finances and to demonstrate the District’s accountability. If

you have questions about the report or need additional financial information, contact the District’s

business administrator at 13 Swift Drive, Egg Harbor Township, New Jersey 08234.

22

DISTRICT - WIDE FINANCIAL STATEMENTS

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Exhibit A-1

Governmental Business-type

Activities Activities

Total

ASSETS

Cash and cash equivalents 15,463,642$ 453,298 15,916,940

Other Assets - SREC 151,264 151,264

Receivables, net 2,400,414 2,400,414

Internal balances (78,037) 78,037 -

Due from other governments 2,729,309 346,205 3,075,514

Inventory 105,629 105,629

Capital assets not being depreciated

Construction in progress 757,169 757,169

Land 1,836,300 1,836,300

Capital assets, net 150,881,171 215,826 151,096,997

Total Assets 174,141,232 1,198,995 175,340,227

DEFERRED OUTFLOWS OF RESOURCES

Loss on bond issue refunding 3,275,485 3,275,485

Deferred outflows related to pensions 5,883,228 5,883,228

Total Deferred Outflows of Resources 9,158,713 - 9,158,713

LIABILITIES

Accounts payable 2,115,924 13,749 2,129,673

Other liabilities 1,402,049 86,637 1,488,686

Due to Trust & Agency -

Payable to state government 18,602 18,602

Unearned revenue 1,647,240 76,848 1,724,088

Noncurrent liabilities:

Due within one year 8,756,197 8,756,197

D

ue beyond one year 53,052,847 65,754 53,118,601

Net Pension Liability 35,508,255 35,508,255

Total liabilities 102,501,114 242,988 102,744,102

DEFERRED INFLOWS OF RESOURCES

Gain on bond issue refunding 675,641 675,641

Deferred inflows related to pensions 14,993,215 14,993,215

Total Deferred Inflows of Resources 15,668,856 - 15,668,856

NET POSITION

Invested in capital assets, net of related debt 94,979,615 215,826 95,195,441

Restricted for:

Debt service 2 2

Capital projects 191,281 191,281

Other purposes 9,954,183 9,954,183

Unrestricted (39,995,106) 740,181 (39,254,925)

Total net position 65,129,975$ 956,007 66,085,982

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Net Position

June 30, 2021

The accompanying notes are an integral part of these financial statements

23

Exhibit A-2

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Activities

For the Year Ended June 30, 2021

Net (Expense) Revenue and

Program Revenues Changes in Net Position

Indirect Operating

Expenses Charges for Grants and Governmental Business-type

Functions/Programs Expenses Allocation Services Contributions Activities Activities Total

Governmental activities:

Instruction:

Regular 56,655,313$ 22,057,337 634,522 25,741,086 (52,337,042) (52,337,042)

Special education 15,577,056 6,120,480 5,371,945 (16,325,591) (16,325,591)

Other special instruction 3,098,489 1,343,615 1,179,291 (3,262,813) (3,262,813)

Other instruction 1,797,895 610,390 535,739 (1,872,546) (1,872,546)

Nonpublic school programs 190,591 (190,591) (190,591)

Support services:

Tuition 1,822,358 - - (1,822,358) (1,822,358)

Student & instruction related services 23,589,153 9,193,320 10,923,150 (21,859,323) (21,859,323)

School administrative services 5,846,151 3,079,947 2,703,269 (6,222,829) (6,222,829)

General and business administrative services 4,165,659 1,820,920 1,598,222 (4,388,357) (4,388,357)

Plant operations and maintenance 15,480,333 6,612,794 5,804,049 (16,289,078) (16,289,078)

Pupil transportation 9,268,908 4,081,742 3,582,544 (9,768,106) (9,768,106)

Unallocated benefits 54,920,545 (54,920,545)

Interest on long-term debt 2,779,251 (2,779,251) (2,779,251)

Total governmental activities 195,191,702 - 634,522 57,439,295 (137,117,885) - (137,117,885)

Business-type activities:

Food Service 2,779,434 11,914 2,913,975 146,455 146,455

Child Care 164,455

327,368

- 162,913 162,913

Eagle Enterprises 2,326 (2,326) (2,326)

Total business-type activities 2,946,215 - 339,282 2,913,975 307,042 307,042

Total primary government 198,137,917$ - 973,804 60,353,270 (137,117,885) 307,042 (136,810,843)

General revenues:

Taxes:

Property taxes, levied for general purposes, net 81,038,032 81,038,032

Taxes levied for debt service 5,571,072 5,571,072

Federal and State aid not restricted 51,909,524 51,909,524

Federal and State aid restricted 3,242,453 3,242,453

Investment Earnings 3,000 3,411 6,411

Miscellaneous Income 601,660 601,660

Other financing sources/(uses):

Gain/(Loss) on disposal of capital assets (148,908) - (148,908)

Total general revenues and special items 142,216,833 3,411 142,220,244

Change in Net Position 5,098,948 310,453 5,409,401

Net Position—beginning 58,141,483 645,554 58,787,037

Restatement 1,889,544 1,889,544

Net Position—beginning (Restated) 60,031,027 645,554 60,676,581

Net Position—ending 65,129,975$ 956,007 66,085,982

The accompanying notes are an integral part of these financial statements

24

FUND FINANCIAL STATEMENT

S

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Exhibit B-1

Special Capital Debt Total

General Revenue Projects Service Governmental

Fund Fund Fund Fund Funds

ASSETS

Cash and cash equivalents 14,039,497$ 1,232,862 191,281 2 15,463,642

Other Assets - SRECS 151,264 151,264

Receivables, net 62,188 2,338,226 2,400,414

Due from other funds 1,297,123 - 1,297,123

Receivables from other governments 2,722,825 6,484 - - 2,729,309

Total assets 18,272,897 3,577,572 191,281 2 22,041,752

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable 1,514,733 601,191 - 2,115,924

Due to other governments 18,602 18,602

Due to other funds 280,020 1,095,140 - - 1,375,160

Other liabilities 120,937 120,937

Payroll Deductions and Withholdings 16,022 16,022

Unemployment Compensation Claims 159,084 159,084

Unearned revenue 18,374 1,628,866 - 1,647,240

Total liabilities 2,109,170 3,343,799 - - 5,452,969

Fund Balances:

Restricted for:

Excess Surplus 957,148 957,148

Excess Surplus - Designated for

Subsequent Year's Expenditures 5,596,864 5,596,864

Capital Reserve Fund 567,220 567,220

Maintenance Reserve Fund 392,000 392,000

Emergency Reserve 1,000,000 1,000,000

Unemployment Compensation 1,440,951 1,440,951

C

apital Projects 191,281 191,281

Debt service fund 2 2

Conduit 55,648 55,648

Student Activities/Athletics 461,712 461,712

Assigned to:

Encumbrances 816,277 816,277

Designated for subsequent year's

expenditures 3,500,000 - 3,500,000

Unassigned, reported in:

General fund 1,893,267 1,893,267

Special Revenue fund (283,587) (283,587)

Total Fund balances 16,163,727 233,773 191,281 2 16,588,783

Total liabilities and fund balances 18,272,897$ 3,577,572 191,281 2

Amounts reported for governmental activities in the statement

of net position (A-1) are different because:

Capital assets used in governmental activities are not financial

resources and therefore are not reported in the funds. 153,474,640

Deferred inflow of resources

Gain on 10/1/04 refunding bond issue (675,641)

Deferred outflows of resources

Loss on 1/6/16 refunding bond issue 1,976,912

Loss on 6/1/16 refunding bond issue 1,268,715

Loss on 12/1/12 refunding bond issue 29,858

Long-term pension liabilities are not due and payable in the current

period and therefore are not reported in the funds (44,618,242)

Long-term liabilities, including bonds payable, are not due and

payable in the current period and therefore are not reported

in the funds.

Bond payable (53,920,000)

Premium on Refunding Bonds (1,830,181)

Capital leases (4,575,025)

Accrued interest payable (1,106,006)

Compensated absences (1,483,838)

Net position of governmental activities 65,129,975$

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Balance Sheet

Governmental Funds

June 30, 2021

The accompanying notes are an integral part of these financial statements

25

Exhibit B-2

Special Capital Debt Total

General Revenue Projects Service Governmental

Fund Fund Fund Fund Funds

REVENUES

Local tax levy 81,038,032$ 5,571,072 86,609,104

Tuition Charges 634,522 634,522

Interest 3,000 3,000

Miscellaneous 601,660 - 601,660

Local sources 464,590 464,590

State sources 75,795,126 1,277,584 3,242,453 80,315,163

Federal sources 270,757 7,493,361 7,764,118

Total revenues 158,343,097 9,235,535 - 8,813,525 176,392,157

EXPENDITURES

Current:

Regular instruction 39,866,617 7,254,254 47,120,871

Special education instruction 11,847,366 11,847,366

Other special instruction 2,279,718 2,279,718

Other instruction 1,425,936 1,425,936

Nonpublic school programs 190,591 190,591

Support services and undistributed costs:

Tuition 1,822,358 1,822,358

Student & instruction related services 15,132,766 2,854,173 17,986,939

School administrative services 3,969,297 3,969,297

Other administrative services 3,056,029 3,056,029

Plant operations and m

aintenance 11,450,637 11,450,637

Pupil transportation 6,781,582 6,781,582

Unallocated Benefits 54,920,545 54,920,545

Debt service:

Principal 6,330,000 6,330,000

Interest and other charges 2,483,525 2,483,525

Capital outlay 2,883,820 43,523 - 2,927,343

Total expenditures 155,436,671 10,342,541 - 8,813,525 174,592,737

Excess (Deficiency) of revenues

over expenditures 2,906,426 (1,107,006) - - 1,799,420

OTHER FINANCING SOURCES (USES)

Capital leases (non-budgeted) - -

Transfers in 846,134 846,134

Transfers out (846,134) (846,134)

Total other financing sources and uses (846,134) 846,134 - - -

Net change in fund balances 2,060,292 (260,872) - - 1,799,420

Fund balance—July 1 12,708,536 - 191,281 2 12,899,819

Restatement 1,394,899 494,645 1,889,544

Fund balance—July 1, Restated 14,103,435 494,645 191,281 2 14,789,363

Fund balance—June 30 16,163,727$ 233,773 191,281

2 16,588,783

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Revenues, Expenditures, And Changes in Fund Balances

Governmental Funds

For the Year Ended June 30, 2021

The accompanying notes are an integral part of these financial statements

26

Exhibit B-3

Total net change in fund balances - governmental funds (from B-2) 1,799,420

$

Amounts reported for governmental activities in the statement

of activities (A-2) are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statement of

activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.

This is the amount by which capital outlays exceeded depreciation in the period.

Depreciation expense (9,343,819)

Loss on disposition of capital assets (148,908)

Capital outlays 4,267,666 (5,225,061)

Proceeds of capital leases are recognized as a revenue and expenditure in the governmental funds,

however the funds had not been received by June 30 and are recognized as a receivable in the statement

of activities. -

Repayment of long term debt is an expenditure in the governmental funds, but the repayment reduces

long-term liabilities in the statement of net position and is not reported in the statement of activities. 8,353,366

In the statement of activities, interest on long-term debt in the statement of activities is accrued,

regardless of when due. In the governmental funds, interest is reported when due. The accrued

interest is a subtraction in the reconciliation. (-) 142,391

In the statement of activies, certain operating expenses, e.g. pension expense are

measured under full accrual accounting. In the governmental funds, however, expenditures

are reported on the amounts actually billed by the State.

District pension contributions 2,382,003

Cost of benefits earned, net of employee contributions (2,301,487) 80,516

In the statement of activities, certain operating expenses, e.g., compensated absences (vacations) are

measured by the amounts earned during the year. In the governmental funds, however, expenditures

for these items are reported in the amount of financial resources used (paid). When the earned amount

exceeds the paid amount, the difference is reduction in the reconciliation (-);when the paid amount

exceeds the earned amount the difference is an addition to the reconciliation (+).

Compensated absences (156,708)

Amortization of gain on 2004 refunding bond issue 146,855

Amortization of loss on 2016 refunding bond issue (139,645)

Amortization of loss on 2012 refunding bond issue (15,017)

Amortization of premium on 2016 refunding bond issue 112,831

Change in net position of governmental activities 5,098,948

$

For the Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Funds

to the Statement of Activities

The accompanying notes are an integral part of these financial statements

27

Exhibit B-4

Business-type Activities -

Enterprise Funds

Food Latchkey Eagle

Service Program Enterprises Total

ASSETS

Current assets:

Cash and cash equivalents 77,852

$ 370,072 5

,374 453,298

Accounts receivable 332,452

1

3,753 346,205

Interfund Receivable 78,037

- 7

8,037

Inventories 105,629 105,629

Total current assets 593,970

383,825 5

,374 983,169

Noncurrent assets:

Furniture, machinery & equipment 989,217

3

4,892 1,024,109

Less accumulated depreciation (805,957) (2,326)

(808,283)

T

otal noncurrent assets 183,260

- 3

2,566 215,826

Total assets 777,230 383,825 37,940 1,198,995

LIABILITIES

Current liabilities:

Accounts payable 1,905

1

1,844 13,749

Interfund payable - - -

S

tudent Deposits 75,445

1

1,192 86,637

Deferred revenue 76,848

- 7

6,848

Total current liabilities 154,198 23,036 - 177,234

N

oncurrent liabilities:

Compensated absences 65,754 65,754

Total noncurrent liabilities 65,754

- - 6

5,754

Total liabilities 219,952 23,036 - 242,988

N

ET POSITION

Invested in capital assets 183,260

183,260

U

nr

estricted 374,018

360,789 3

7,940 772,747

Total net position 557,278$ 360,789 37,940 956,007

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Net Position

June 30, 2021

Proprietary Funds

The accompanying notes are an integral part of these financial statements

28

Exhibit B-5

Food Latchkey Eagle

Service Program Enterprises Total

Operating revenues:

Charges for services:

Daily sales - reimbursable programs -$ -

Daily sales - non-reimbursable programs 2,709 2,709

Special functions 9,205 9,205

Latchkey program revenue 327,368 327,368

Total operating revenues 11,914 327,368 - 339,282

Operating expenses:

Cost of sales - Reimbursable 1,013,694 1,013,694

Salaries 1,341,288 149,009 1,490,297

Employee benefits 343,233 10,655 353,888

General supplies & materials 55,568 4,791 60,359

Depreciation 25,651 2,326 27,977

Total Operating Expenses 2,779,434 164,455 2,326 2,946,215

Operating income/(loss) (2,767,520) 162,913 (2,326) (2,606,933)

Nonoperating revenues:

State sources:

State school lunch program 77,447 77,447

Federal sources:

National school lunch program 1,596,269 1,596,269

National school breakfast program 784,161 784,161

Special milk program - -

Food distribution program 304,817 304,817

P-EBT Administrative Cost Reimbursement 3,063 3,063

Emergency Operational Costs Reimbursement Program 148,218 148,218

Interest and investment revenue 1,207 1,938 266 3,411

Total nonoperating revenues 2,915,182 1,938 266 2,917,386

Gain/(Loss) before contributions & transfers 147,662 164,851 (2,060) 310,453

Other financing sources:

Transfer in from Student Activities - -

Change in net position 147,662 164,851 (2,060) 310,453

Total net position—beginning 409,616 195,938 40,000 645,554

Total net position—ending 557,278$ 360,789 37,940 956,007

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Revenues, Expenses, and Changes in Fund Net Position

Proprietary Funds

For the Year Ended June 30, 2021

Business-type Activities -

Enterprise Fund

The accompanying notes are an integral part of these financial statements

29

Exhibit B-6

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Statement of Cash Flows

Proprietary Funds

Food Latchkey Eagle

Service Program Enterprises Total

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 10,598$ 321,358 331,956

Payments to employees (1,341,288) (139,536) (1,480,824)

Payments for employee benefits (337,747) (10,655) (348,402)

Payments to suppliers (55,568) (4,791) (60,359)

Payments to cost of sales (712,827) (712,827)

Net cash (used for) operating activities (2,436,832) 166,376 - (2,270,456)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State Sources 76,860 76,860

Federal Sources 2,282,993 2,282,993

Payments from other funds (96,429) - (96,429)

Net cash provided by/(used for) non-capital financing activities 2,263,424 - - 2,263,424

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

Acquisition of capital assets (3,489) (34,892) (38,381)

Net cash (used for) capital financing activities (3,489) - (34,892) (38,381)

CASH FLOWS FROM INVESTING ACTIVITIES

Interest and dividends 1,207 1,938 266 3,411

Net cash provided by investing activities 1,207 1,938 266 3,411

Net (decrease) in cash and cash equivalents (175,690) 168,314 (34,626) (42,002)

Balances—beginning of year 253,542 201,758 40,000 495,300

Balances—end of year 77,852 370,072 5,374 453,298

Reconciliation of operating (loss) to net cash (used)

by operating activities:

Operating Income/loss) (2,767,520) 162,913 (2,326)

(2,604,607)

Adjustments to reconcile (loss) to net cash (used for) operating activities

Depreciation and net amortization 25,651 2,326 25,651

Federal commodities 304,817 304,817

(Increase) in receivables 697 (7,792) (7,095)

(Increase) in inventories 16,473 16,473

(Decrease) in accounts payable (4,403) 9,473 5,070

Increase in student deposits (2,013) 1,782 (231)

Increase in deferred revenue (16,020) (16,020)

Increase in compensated absences 5,486 5,486

Total adjustments 330,688 3,463 2,326 334,151

Net cash (used for) operating activities (2,436,832)$ 166,376 - (2,270,456)

For the Year Ended June 30, 2021

Business-type Activities -

Enterprise Funds

The accompanying notes are an integral part of these financial statements

30

Notes to the Financial Statements

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Egg Harbor Township School District is an instrumentality of the State of New Jersey, established to

function as an educational institution. The Board consists of elected officials and is responsible for the

fiscal control of the District. A superintendent is appointed by the Board and is responsible for the

administrative control of the District.

The financial statements of the Board of Education (Board) of the Egg Harbor Township School District

(District) have been prepared in conformity with generally accepted accounting principles (GAAP) as

applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted

standard-setting body for establishing governmental accounting and financial reporting principles. In its

accounting and financial reporting, the District follows the pronouncements of the Governmental

Accounting Standards Board (GASB). The more significant accounting policies established in GAAP and

used by the District are discussed below.

A. REPORTING ENTITY:

The Egg Harbor Township School District is a Type II district located in the County of Atlantic, State of

New Jersey. As a Type II District, the School District functions independently through a Board of

Education. The board is comprised of nine members elected to three-year terms. The purpose of the

district is to educate students in grades K-12. The Egg Harbor Township School District had an

enrollment at June 30, 2021 of 7,155 students.

The primary criterion for including activities within the District's reporting entity, as set forth in Section

2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards, is

whether:

 the organization is legally separate (can sue or be sued in their own name)

 the District holds the corporate powers of the organization

 the District appoints a voting majority of the organization’s board

 the District is able to impose its will on the organization

 the organization has the potential to impose a financial benefit/burden on the District

 there is a fiscal dependency by the organization on the District

Based on the aforementioned criteria, the District has no component units.

B. BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE STATEMENTS:

The District’s basic financial statements include both government-wide (reporting the District as a whole)

and fund financial statements (reporting the District’s major funds). Both the government-wide and fund

financial statements categorize primary activities as either governmental or business type. The District’s

general, special revenue, capital projects, and debt service activities are classified as governmental

activities. The District’s food service, Talons (latchkey) and Eagle Enterprises program are classified as

business-type activities.

In the governmental-wide Statement of Net Position, both the governmental and business-type activities

columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,

economic resource basis, which recognizes all long-term assets and receivables as well as long-term

debt and obligations. The District’s net position are reported in three parts-invested in capital assets, net

of related debt; restricted net position; and unrestricted net position. The District first utilizes restricted

resources to finance qualifying activities.

31

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

The government-wide Statement of Activities reports both the gross and net cost of each of the District’s

functions and business-type activities (food service and latchkey). The functions are also supported by

general government revenues (property taxes, tuition, certain intergovernmental revenues, etc.). The

Statement of Activities reduces gross expenses (including depreciation) by related program revenues,

operating and capital grants. Program revenues must be directly associated with the function (regular

instruction, vocational programs, student & instruction related services, etc.) or a business-type activity.

Operating grants include operating-specific and discretionary (either operating or capital) grants while the

capital grants column reflects capital-specific grants.

The net costs (by function or business-type activity) are normally covered by general revenue (property

taxes, tuition, interest income, etc.).

a. The District does allocate indirect costs such as on-behalf TPAF Pension Contributions, and

Reimbursed TPAF Social Security Contributions.

The government-wide focus is more on the sustainability of the District as an entity and the change in the

District’s net position resulting from the current year’s activities. Fiduciary funds are excluded from the

government-wide financial statements.

C. BASIC FINANCIAL STATEMENTS – FUND FINANCIAL STATEMENTS

The financial transactions of the District are reported in individual funds in the fund financial statements.

Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its

assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. The various funds are

reported by generic classification within the financial statements.

The emphasis in fund financial statements is on the major funds in either the governmental or business-

type activities categories. Nonmajor funds by category are summarized into a single column. GASBS

sets forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of

either fund category or the governmental and enterprise combined) for the determination of major funds.

The nonmajor funds are combined in a column in the fund financial statements. The State of New Jersey

Department of Education has mandated that all New Jersey School districts must report all governmental

funds a major, regardless of the fund meeting the GASB definition of a major fund. However, the criteria

are applied to proprietary funds.

The following fund types are used by the District:

1. Governmental Funds:

The focus of the governmental funds’ measurement (in the fund statements) is upon determination of

financial position and changes in financial position (sources, uses, and balances of financial resources)

rather than upon net income. The following is a description of the governmental funds of the District.

a. General fund is the general operating fund of the District. It is used to account for all financial

resources except those required to be accounted for in another fund.

b. Special revenue funds are used to account for the proceeds of specific revenue sources that are

legally restricted to expenditures for a specific purpose. The special revenue fund is specifically

used to account for state and federal grant monies that have been allocated to the District.

c. Capital projects funds are used to account for all financial resources to be used for the

acquisition or construction of major capital facilities. The financial resources are derived from

32

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

temporary notes or serial bonds that are specifically authorized by the voters as a separate

question on the ballot either during the annual election or at a special election.

d. Debt service funds are used to account for the accumulation of resources for, and the payment

of principal and interest on bonds issued to finance major property acquisition, construction and

improvement programs.

Fund Balances – Governmental Funds

In the fund financial statements, governmental funds report the following classifications of fund balance:

 Nonspendable – includes amounts that cannot be spent because they are either not spendable in

form or are legally or contractually required to be maintained intact.

 Restricted – includes amounts restricted by external sources (creditors, laws of other

governments, etc.) or by constitutional provision or enabling legislation.

 Committed – includes amounts that can only be used for specific purposes. Committed fund

balance is reported pursuant to resolutions passed by the Board of Education, the District’s

highest level of decision making authority. Commitments may be modified or rescinded only

through resolutions approved by the Board of Education.

 Assigned – includes amounts that the District intends to use for a specific purpose, but do not

meet the definition of restricted or committed fund balance. Under the District’s policy, amounts

may be assigned by the Business Administrator.

 Unassigned – includes amounts that have not been assigned to other funds or restricted,

committed or assigned to a specific purpose within the General Fund. The District reports all

amounts that meet the unrestricted General Fund Balance Policy described below as unassigned:

The details of the fund balances are included in the Governmental Funds Balance Sheet. When an

expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available,

the District considers restricted funds to have been spent first. When an expenditure is incurred for which

committed, assigned, or unassigned fund balance are available, the District considers amounts to have

been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed.

2. Proprietary Funds:

The focus of proprietary fund measurement is upon determination of operating income, changes in net

position, financial position, and cash flows. The generally accepted accounting principles applicable are

those similar to businesses in the private sector. The following is a description of the proprietary funds of

the District:

a. Enterprise funds are required to be used to account for operations for which a fee is charged to

external users for goods or services and the activity (a) is financed with debt that is solely

secured by a pledge of the net revenues, (b) has third party requirements that the cost of

providing services, including capital costs, be recovered with fees and charges or (c) establishes

fees and charges based on a pricing policy designated to recover similar costs.

Food Services Fund – provides for the operation of food services in all

schools within the school district.

Latchkey – accounts for the operation of an after-school program for all

children within the district.

33

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Eagle Enterprises – provides for the operation of a printing service.

3. Fiduciary Funds:

Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore are

not available to support District programs. The reporting focus is on net position and changes in net

position, and are reported using accounting principles similar to proprietary funds.

The District’s fiduciary funds are presented in the fiduciary fund financial statements by type (pension,

private purpose and agency). Since by definition these assets are being held for the benefit of a third

party (other local governments), private parties, pension participants, etc.) and cannot be used to address

activities or obligations of the government, these funds are not incorporated into the government-wide

statements.

D. BASIS OF ACCOUNTING

Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the

accounts and reported in the financial statements. It relates to the timing of the measurements made

regardless of the measurement focus applied.

1. Accrual:

Both governmental and business-type activities in the government-wide financial statements and the

proprietary and fiduciary fund financial statements are presented on the accrual basis of accounting.

Revenues are recognized when earned and expenses are recognized when incurred.

2. Modified Accrual:

The governmental fund financial statements are presented on the modified accrual basis of accounting.

Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e.,

both measurable and available. “Available” means collectible within the current period or within 60 days

after year end. Expenditures are generally recognized under the modified accrual basis of accounting

when the related liability is incurred. The exception to this general rule is that principal and interest on

general obligation long-term debt, if any, is recognized when due.

E. FINANCIAL STATEMENT AMOUNTS

1. Cash and Cash Equivalents:

Cash and cash equivalents include petty cash, change funds, cash in banks and all highly liquid

investments with a maturity of three months or less at the time of purchase and are stated at cost plus

accrued interest. U.S. Treasury and agency obligations and certificates of deposit with maturities of one

year or less when purchased are stated at cost. All other investments are stated at fair value.

New Jersey school districts are limited as to the types of investments and types of financial institutions

they may invest in. New Jersey statute 18A:20-37 provides a list of permissible investments that may be

purchased by New Jersey school districts.

Additionally, the District has adopted a cash management plan that requires it to deposit public funds in

public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection

Act (“GUDPA”). GUDPA was enacted in 1970 to protect Governmental Units from a loss of funds on

deposit with a failed banking institution in New Jersey.

34

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NJSA 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units.

The statute requires that no governmental unit shall deposit public funds in a public depository unless

such funds are secured in accordance with the Act. Public depositories include Savings and Loan

institutions, banks (both state and national banks) and savings banks the deposits of which are federally

insured. All public depositories must pledge collateral, having a market value at least equal to five

percent of the average daily balance of collected public funds, to secure the deposits of Governmental

Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public

depositories, is available to pay the full amount of their deposits to the Governmental units.

2. Investments:

Investments, including deferred compensation and pension funds, are stated at fair value, (quoted market

price or the best available estimate). Interest earned in the Capital Projects Fund is recognized in the

District’s General Fund.

3. Inventories:

Inventories in the general fund consist of expendable supplies held for the District’s use and are carried at

cost using the first-in, first-out method. Inventories in the enterprise fund are valued at cost, which

approximates market, using the first-in, first –out method. As of June 30, 2019, the District did not have

inventory in the general fund and had the following inventory in the enterprise fund:

Food $ 93,678

Supplies 11,951

$ 105,629

The value of Federal donated commodities as reflected on Schedule A (required by the Single Audit Law

of 1996) is the difference between market value and cost of the commodities at the date of purchase and

has been included as an item of nonoperating revenue in the financial statements. The value of

commodities included in the food service inventory on June 30, 2021 is $76,848.

4. Capital Assets:

Capital assets purchased or acquired with an original cost of $2,000 or more are reported at historical

cost or estimated historical cost. Contributed assets are reported at fair market value as of the date

received. Additions, improvements and other capital outlays that significantly extend the useful life of an

asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.

Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives:

Buildin

g

s 20-50

y

ears

Machiner

y

and equipmen

t

5-10

y

ears

Improvements 10-20

y

ears

Infrastructure assets include roads, parking lots, underground pipe, etc. All infrastructure assets are

reported in the financial statements and are being depreciated over their useful lives.

35

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

5. Revenues:

Substantially all governmental fund revenues are accrued. Property taxes are susceptible to accrual and

under New Jersey State Statutes a municipality is required to remit to its school district the entire balance

of taxes in the amount voted upon or certified, prior to the end of the school year. The District records the

entire approved tax levy as revenue (accrued) at the start of the fiscal year, since the revenue is both

measurable and available. Subsidies and grants to proprietary funds, which finance either capital or

current operations, are reported as non operating revenue. In respect to grant revenues, the provider

recognizes liabilities and expenses and recipient recognizes receivables and revenue when the

applicable eligibility requirements, including time requirements are met. Resources transmitted before the

eligibility requirements are met are reported as advances by the provider and deferred revenue by the

recipient. Program revenues, including tuition revenue, are reported as reductions to expenses in the

Statement of Activities.

6. Expenditures:

Expenditures are recognized when the related fund liability is incurred. Inventory costs are reported in

the period when inventory items are used, rather than in the period purchased.

7. Compensated Absences:

Compensated absences are those absences for which employees will be paid, such as vacation, sick

leave, and sabbatical leave. A liability for compensated absences that are attributable to services already

rendered, and that are not contingent on a specific event that is outside the control of the District and its

employees, is accrued as the employees earn the rights to the benefits. Compensated absences that

relate to future services, or that are contingent on a specific event that is outside the control of the District

and its employees, are accounted for in the period in which such services are rendered or in which such

events take place.

In governmental and similar trust funds, compensated absences that are expected to be liquidated with

expendable available financial resources are reported as an expenditure and fund liability in the fund that

will pay for the compensated absences. The remainder of the compensated absences liability is reported

in the District-wide Financial Statements as a Governmental Activity.

In proprietary and similar trust funds, compensated absences are recorded as an expense and liability of

the fund that will pay for them.

8. Interfund Activity:

Interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are

reported as interfund receivables and payables as appropriate and are subject to elimination upon

consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues

and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate

benefiting fund and reduces its related costs as reimbursement. All other interfund transactions are

treated as transfers. Transfers between governmental or proprietary funds are netted as part of the

reconciliation to the government-wide financial statements. All funds internal activity is eliminated when

carried to the Government-wide statements.

36

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

9. Budgets/Budgetary Control:

Annual appropriated budgets are prepared in the spring of each year for the general, special revenue and

debt service funds. The budgets are submitted to the county office for approval and, as long as the

District budget is within State mandated CAPs, there is no public vote on the budget. If the budget

exceeds State mandated CAPs, the voters have an opportunity approve or reject the budget at the

regular election held in November. Budgets are prepared using the modified accrual basis of accounting,

except for the special revenue fund as described later. The legal level of budgetary control is established

at line item accounts within each fund. Line item accounts are defined as the lowest (most specific) level

of detail as established pursuant to the minimum chart of accounts referenced in N.J.A.C. 6:23-2.2(f).

Transfers of appropriations may be made by School Board resolution at any time during the fiscal year

and are subject to two-thirds majority vote by the School Board and under certain circumstances require

approval by the Executive County Superintendent of Schools. The Board of Education approved the

following significant budgetary appropriation transfers during the 2021 fiscal year:

From To

Regular Programs - Inst. - Salaries - Preschool 239,000

Regular Programs - Inst. - Salaries - Kindergarten 207,386

Regular Programs - Inst. - Salaries - Grades 1-5 181,630

Regular Programs - Inst. - Salaries - Grades 9-12 189,044

Regular Programs - Undist. Inst. - Salaries 166,000

Regular Programs - Undist. Inst. - Purch Prof-Ed Svc 1,237,135

Regular Programs - Undist. Inst. - General Supplies 383,266

Special Ed - Multi. Disabilities - Other Salaries 815,862

Other Inst.- Basic Skills - Salaries of Teachers 199,849

Tuition to CSSD & Regional Day Schools 502,505

Tuition to Private Schools for the Disabled - Within State 1,228,088

Undist Expend - Related Svc - Salaries 247,646

Undist Expend - Extra Svc - Salaries 947,589

Undist Expend - Extra Svc - Purch Prof/Ed Svc 465,000

Undist Expend - Required Maint. - Cleaning, Repairs 138,256

Undist Expend - Custodial - Insurance 129,031

Undist Expend - Custodial - Energy (Electricity) 165,646

Undist Expend - Trans - Sal - Regular 153,200

Undist Expend - Trans - Sal - Spec Ed. 180,000

Undist Expend - Trans - Sal - Oth Between Home & School 138,000

Undist Expend - Trans - Between Home & School - Contract 235,551

Undist Expend - Trans - Between Home & School - Vendors 318,869

Undist Expend - Trans - Special Ed Students - Vendors 310,000

Undist Expend - Trans - Special Ed Students - Joint Agree 1,033,331

Undist Expend - Transportation - Supplies 433,508

Undist Expend - Unallocated Benefits - Social Security 155,560

Undist Expend - Unallocated Benefits - PERS 145,000

Undist Expend - Unallocated Benefits - Health Benefits 812,969

Undist Expend - Facilities Acquisition - Const. Svc. 1,866,660

Trans to Special Revenue Fund 846,134

37

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Formal

budgetary integration into the accounting system is employed as a management control device

during the year. For governmental funds there are no substantial differences between the budgetary

basis of accounting and generally accepted accounting principles with the exception of the legally

mandated revenue recognition of one or more June state aid payments for budgetary purposes only and

the special revenue fund as noted below. Encumbrance accounting is also employed as an extension of

formal budgetary integration in the governmental fund types. Unencumbered appropriations lapse at

fiscal year end.

The accounting records of the special revenue fund are maintained on the grant accounting budgetary

basis. The grant accounting budgetary basis differs from GAAP in that the grant accounting budgetary

basis recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the

GAAP basis does not. Sufficient supplemental records are maintained to allow for the presentation of

GAAP basis financial reports.

10. T

uition Receivable

Tuition charges were established by the Board of Education based on estimated costs. The charges are

subject to adjustment when the final costs have been determined.

11. T

uition Payable

Tuition charges for the fiscal year 2018/19 were based on rates established by the receiving district.

These rates are subject to change when the actual costs have been determined.

12. Use o

f Estimates

The preparation of financial statements in conformity with generally accepted accounting principles

requires management to make estimates and assumptions that affect certain reported amounts and

disclosures. Accordingly, actual results could differ from those results.

13. Allocation of Costs

In

the government-wide statement of activities, the District has allocated unallocated benefits to various

programs based on the original budgetary expenditures by program.

14. Pensions

For purposes of measuring the net pension liabilit

y, deferred outflows of resources and deferred inflows of

resources related to pensions, and pension expense, information about the fiduciary net position of the

Teachers’ Pension and Annuity Fund (TPAF) and Public Employee Retirement System (PERS) and

additions to/deductions from the fiduciary net position have been determined on the same basis as they

are reported by the TPAF and PERS. For this purpose, benefit payments (including refunds of employee

contributions) are recognized when due and payable in accordance with the benefit terms. Investments

are reported at fair value.

F. RECENT

ACCOUNTING PRONOUNCEMENTS

In May 2019, the Governmental Accounting Standards Board (GASB) issued Statement No. 91, “Conduit

Debt Obligations”. This statement is effective for fiscal periods beginning after December 15, 2020, will

not have any effect on the District’s financial reporting.

38

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

In March 2020, the Governmental Accounting Standards Board (GASB) issued Statement No. 94,

“Public-Private Partnerships and Availability Payment Arrangements”. This statement is effective for

fiscal periods beginning after June 15, 2022, will not have any effect on the District’s financial reporting.

In May 2020, the Governmental Accounting Standards Board (GASB) issued Statement No. 96,

“Subscription-Based Information Technology Arrangements”. This statement is effective for fiscal periods

beginning after June 15, 2022 and will not have any effect on the District’s financial reporting.

In June 2020, the Governmental Accounting Standards Board (GASB) issued Statement No. 97, “Certain

Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457

Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a

supersession of GASB Statement No. 32”. This statemen is effective for fiscal periods beginning after

June 15, 2021, with certain exceptions, and will not have any effect on the District’s financial reporting.

In October 2021, the Governmental Accounting Standards Board (GASB) issued Statement No. 98, “The

Annual Comprehensive Financial Report”. This statement is effective for fiscal periods ending after

December 15, 2021, and will change the title of the “Comprehensive Annual Financial Report” to “The

Annual Comprehensive Financial Report.”

NOTE 2. INVESTMENTS

As of June 30, 2021, the Di

strict had no investments.

Interest Rate Risk. The District does not have a formal investment policy that limits investment

maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

However, New Jersey Statutes 18A:20-37 limits the length of time for most investments to 397 days.

Credit Risk. New Jersey Statutes 18A:20-37 limits District investments to those specified in the Statutes.

The type of allowable investments are Bonds of the United States of America or of the District or the local

units in which the District is located; obligations of federal agencies not exceeding 397 days; government

money market mutual funds; the State of New Jersey Cash Management Plan; local government

investment pools; or repurchase of fully collateralized securities.

Concentration of Credit Risk. The District places no limit on the amount the District may invest in any

one issuer.

NOTE 3. CASH

Cus

todial 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 District’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) which mandates the collateralization of all

government deposits, or in qualified investments established in New Jersey Statutes 18A:20-37 that are

treated as cash equivalents. As of June 30, 2021, $1,210,371 of the District’s bank balance of

$18,685,458 was exposed to custodial credit risk.

39

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 4. CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2021 was as follows:

Balance

June 30, 2020

A

dditions

Disposals/

A

d

j

ustments

Balance

June 30, 2021

Governmental Activities:

Capital assets that are not

bein

g

depreciated:

Construction in pro

g

ress $1,142,940 415,820

(

801,591_ 757,169

Land 1,836,300 1,836,300

Total capital assets not being

depreciated 2,979,240 415,820

(

801,591

)

2,593,469

Bld

g

and bld

g

improve 293,531,779 1,773,750 295,305,529

Machiner

y

& equipmen

t

12,031,821 840,529

(

287,980

)

12,584,370

Vehicles 13,493,090 2,039,158

(

1,293,426

)

14,238,822

Total at historical cos

t

319,056,690 4,653,437

(

1,581,406

)

322,128,721

Less accum depr

(

163,336,229

)

(

9,343,819

)

1,432,498

(

171,247,550

)

Total capital assets being

depr, net of accum depr 155,720,461

(

4,690,382

)

(

148,908

)

150,881,171

Governmental activities

capital assets, net $158,699,701

(

4,274,562

)

(

950,499

)

153,474,640

Business-t

y

pe activities:

Equipmen

t

$985,728 3,488 989,217

Vehicles 34,892 34,892

Less accum depr for:

Equipmen

t

(

780,306

)

(

27,977

)

(

808,283

)

Business-type activities

capital assets, net $258,567 10,403 215,826

Depreciation expense charged to governmental functions is as follows:

Re

g

ular instruction $ 3,752,747

Special education 1,041,314

Other special instruction 228,597

Other instruc

t

ion 103,849

Student & instruction related services 1,564,115

School administrative expenses 524,010

General and business administration 309,804

Plant operations and maintenance 1,125,074

Student transportation services 694,309

$ 9,343,819

40

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

No

interest on debt was capitalized during the year and the amount of interest expense paid on long term

debt was $2,483,525.

NOTE 5. CAPITAL RESERVE ACCOUNT

A capital reserve account was established by the Egg Harbor Township Board of Education on October

28, 1997 for the accumulation of funds for use as capital outlay expenditures in subsequent fiscal years.

During the 2008 fiscal year, the District transferred $2,140,725 from the unreserved fund balance in order

to fund the capital reserve fund. A capital reserve account is maintained in the general fund and its

activity is included in the general fund annual budget.

Funds placed in the capital reserve account are restricted to capital projects in the district’s approved

Long Range Facilities Plan (LRFP). Upon submission of the LRFP to the department, a district may

increase the balance in the capital reserve by appropriating funds in the annual general fund budget

certified for taxes or by transfer by board resolution at year end (June 1 to June 30) of any unanticipated

revenue or unexpended line-item appropriation amounts, or both. A district may also appropriate

additional amounts when the express approval of the voters has been obtained either by a separate

proposal at budget time or by a special question at one of the four special elections authorized pursuant

to NJSA 19:60-2. Pursuant to NJAC 6A:23A-14.1(g), the balance in the account cannot at any time

exceed the local support costs of uncompleted capital projects in its approved LRFP.

The activity of the capital reserve for the 2021 fiscal year is as follows:

$ 2,437,219

(

1,869,999

)

Beginning balance, July 1

Withdrawals

Board resolution

Ending balance, June 30

$ 567,220

NOTE 6. MAINTENA

NCE RESERVE ACCOUNT

New Jersey Statute 18A:7G-9 permits districts to accumulate funds for the required maintenance of a

facility in accordance with the Educational Facilities Construction and Financing Act (EFCFA). The

balance may be increased through an appropriation in the annual general fund budget certified for taxes

or a resolution of the Board at the June meeting. This reserve may be used at any time during the year,

by resolution, to transfer to the required maintenance budget lines for use on required maintenance

activities for a school facility as reported in the comprehensive maintenance plan. Funds withdrawn from

the maintenance reserve account are restricted for use on required maintenance appropriations and may

not be transferred to any other line-item account. Per resolution made on June 27, 2017, the district

established a Maintenance Reserve Account and transferred current year surplus of $392,000 to

Maintenance Reserve. As of June 30, 2021 the District has reserved $392,000 for maintenance.

41

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 7. TRANFERS TO CAPITAL OUTLAY

During the year ended June 30, 2021, the District transferred $1,869,999 to the capital outlay accounts.

The transfer was made from the general fund capital reserve account to fund various capital projects.

NOTE 8. GENERAL LONG-TERM DEBT

Long

-term liability activity for the year ended June 30, 2021 was as follows:

Amounts

Balance Balance Due Within

06-30-2

0 Issued

Retired 6-30-21 One year

Governmental Activities

Bonds & loans pa

y

able:

School bonds $60,250,000 6,330,000 53,920,000 6,620,000

Obli

g

ations under capital

Leases 6,598,391 2,023,366 4,575,025 2,147,196

66,848,391 8,353,366 58,495,025 8,767,196

Other liabilities:

Compensated absences

Pa

y

able 1,327,130 236,404 79,696 1,483,838

Premium on Refundin

g

Bonds 1,943,012 112,831 1,830,181 164,487

Net Pension Liabilit

y

38,420,796 2,912,541 35,508,255

Governmental activities lon

g

-

Term liabilities 108,539,329 236,404 11,458,434 97,317,299 8,931,683

Business-t

y

pe Activities:

Compensated absences

Pa

y

able 60,268 9,799 4,313 65,754

Business-t

y

pe activities lon

g

-

Term-liabilities $60,268 9,799 4,313 65,754

Bonds a

nd loans payable are budgeted and paid through the general fund operating budget.

A. Bonds Payable:

Bonds are authorized in accordance with State law by the voters of the District through referendums. All

bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the

Board are general obligation bonds.

Long-term debt as of June 30, 2021 consisted of the following:

$50,735,000 Refunding Bonds dated October 1, 2004 payable in annual installments on January 15,

2005 and each July 15 thereafter commencing in 2012 and continuing through 2025. Semi-annual

interest payments are due, at rates ranging from 3.00% to 5.75%, on January 15 and July 15,

commencing January 15, 2005. The total savings to the District was $1,588,925, or 3.021% as a result of

refunding the 2001 bond issue. The refunding bonds are not subject to redemption prior to their stated

maturities. The balance remaining as of June 30, 2021 was $22,375,000.

42

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

On

November 15, 2012 the District issued $6,805,000 in refunding school bonds. These bonds were

authorized by a board of education approved refunding bond ordinance in September 2012 which

provided for the refunding of all or a portion of the callable portion of the $23,052,000 issue dated April 1,

2005. The total savings to the District was $403,186, or 6.03% as a result of refunding the 2005 bond

issue. The callable portion refunded includes the bonds maturing on April 1, 2016 and annually thereafter

through April 1, 2024 and total $6,685,000. Semi-annual interest payments are due, at rates ranging from

2.00% to 4.00%, on April 1 and October 1, commencing April 1, 2013. The bonds will mature annually on

April 1, commencing in 2013 through 2024. Refunding bonds maturing on or after April 1, 2023 are

subject to redemption prior to maturity at the option of the Board on any date on or after April 1, 2022.

The balance remaining as of June 30, 2021 was $1,690,000.

On January 6, 2016 the District issued $14,365,000 in refunding school bonds. These bonds were

authorized by a board of education approved refunding bond ordinance in November 2015 which

provided for the refunding of all or a portion of the callable portion of the $15,410,000 issue dated

December 5, 2006. The total savings to the District was $1,013,330, or 7.05% as a result of refunding the

2006 bond issue. The callable portion refunded includes the bonds maturing on April 1, 2017 and

annually thereafter through April 1, 2030 and total $14,675,000. Semi-annual interest payments are due,

at rates ranging from 2.00% to 5.00%, on April 1 and October 1, commencing April 1, 2016. The bonds

will mature annually on April 1, commencing in 2016 through 2030. Refunding bonds maturing on or after

April 1, 2026 are subject to redemption prior to maturity at the option of the Board on any date on or after

April 1, 2025. The balance remaining as of June 30, 2021 was $13,980,000.

On June 1, 2016 the District issued $19,320,000 in refunding school bonds. These bonds were

authorized by a board of education approved refunding bond ordinance in April 2016 which provided for

the refunding of all or a portion of the callable portion of the $27,924,000 issue dated September 15,

2008. The total savings to the District was $1,138,616, or 6.01% as a result of refunding the 2008 bond

issue. The callable portion refunded includes the bonds maturing on September 15, 2019 and annually

thereafter through September 15, 2028 and total $18,950,000. Semi-annual interest payments are due,

at rates ranging from 2.00% to 5.00%, on March 15 and September 15, commencing September 15,

2016. The bonds will mature annually on September 15, commencing in 2016 through 2028. The

balance remaining as of June 30, 2021 was $15,875,000.

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

Principal Interest Total

Year endin

g

June 30,

2022 $ 6,620,000 2,182,950 8,802,950

2023 6,905,000 1,847,738 8,752,738

2024 7,270,000 1,452,428 8,752,438

2025 7,680,000 1,126,056 8,806,056

2026 7,960,000 756,269 8,716,269

2027-2030 17,485,000 1,146,831 18,631,831

$ 53,920,000 8,542,281 62,462,281

B. Bonds Authorized But Not Issued:

As of June 30, 2021, the Board had authorized but not issued bonds in the amount of $1,357.

43

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

C. Capital Leases Payable:

The District is leasing various equipment, vehicles, and facilities totaling $10,882,409 under capital

leases. Semiannual lease payments are made to First Niagara, SunTrust Leasing Co., U.S. Bank Corp.,

Banc of America, JP Morgan Chase Bank, NA and TD Equipment Finance, and include interest at a rate

of 1.260% to 2.950% per annum. The following is a schedule of the future minimum lease payments

under this capital lease and the net minimum lease payments at June 30, 2021.

A

mount

Year endin

g

June 30,

2022 $ 1,825,502

2023 1,827,344

2024 778,094

2025 290,513

2026 0

Total minimum lease payments 4,721,453

Less amount representing interest 146,428

Present value of lease pa

y

ments $ 4,575,025

The following schedule lists the equipment, along with the accumulated depreciation, that has been

obtained through capital leases:

A

ccumulated Remainin

g

Description Cost Depreciation Value

Transportation Equipment $ 3,624,028 2,621,943 1,722,515

Equipment 7,258,381 1,901,513 4,636,438

Transportation Equipment $ 10,882,409 4,523,456 6,358,953

NOTE 9. PENSION PLANS

Description of Plans

All required employees of the District are covered by either the Public Employees’ Retirement System or

the Teacher’s Pension and Annuity Fund cost-sharing multiple-employer defined benefit pension plans

which have been established by state statute and are administered by the New Jersey Division of

Pension and Benefits (Division). According to the State of New Jersey Administrative Code, all

obligations of both Systems will be assumed by the State of New Jersey should the Systems terminate.

The Division issues a publicly available financial report that includes the financial statements and required

supplementary information for the Public Employees Retirement System and the Teachers’ Pension and

Annuity Fund. These reports may be obtained by writing to the Division of Pensions and Benefits, PO

Box 295, Trenton, New Jersey, 08625 or the reports can be accessed on the internet at:

http://www.state.nj.us/treasury/pensions/financial-rpts-home.shtml.

Teachers' Pension and Annuity Fund

The Teachers' Pension and Annuity Fund was established in January, 1955 under the provisions of

N.J.S.A. 18A:66 to provide retirement benefits, death, disability and medical benefits to certain qualified

members. The Teachers’ Pension and Annuity Fund is considered a cost-sharing multiple-employer plan

with a special funding situation, as under current statute, all employer contributions are made by the State

of New Jersey on behalf of the District and the system’s other related non-contributing employers.

44

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Membership is mandatory for substantially all teachers or members of the professional staff certified by

the State Board of Examiners, and employees of the Department of Education who have titles that are

unclassified, professional and certified.

Public Employees' Retirement System

The Public Employees' Retirement System was established in January, 1955 under the provisions of

N.J.S.A. 43:15A to provide retirement, death, disability and medical benefits to certain qualified members.

The Public Employees’ Retirement System is a cost-sharing multiple-employer plan. Membership is

mandatory for substantially all full time employees of the State or any county, municipality, school district

or public agency provided the employee is not required to be a member of another State-administered

retirement system or other state or local jurisdiction.

Defined Contribution Retirement Program (DCRP)

The Defined Contribution Retirement Program (DCRP) was established as of July 1, 2008 under the

provisions of Chapter 92, P.L. 2008 and Chapter 103, P.L. 2008 (NJSA 43:15C-1 et seq). The DCRP is a

cost-sharing multiple-employer defined contribution pension fund. The DCRP provides eligible members,

and their beneficiaries with a tax-sheltered, defined contribution retirement benefit, along with life

insurance and disability coverage. Vesting and benefit provisions are established by NJSA 43:15C-1 et

seq.

Funding Policy

The cont

ribution policy is set by N.J.S.A. 43:15A, Chapter 62, P.L. of 1994, Chapter 115, P.L. of 1997 and

N.J.S.A. 18:66, and requires contributions by active members and contributing employers. Plan member

and employer contributions may be amended by State of New Jersey legislation. TPAF and PERS

provide for employee contributions of 7.5% of employees’ annual compensation, as defined. Employers

are required to contribute at an actuarially determined rate in both TPAF and PERS. The current TPAF

rate is 35.24% and the PERS rate is 15.98% of covered payroll. The School District’s contributions to

TPAF for the years ending June 30, 2021, 2020, and 2019 were $15,089,788, $11,300,284, and

$10,057,008, respectively, and paid by the State of New Jersey on behalf of the board, equal to the

required contributions for each year. The School District’s contributions to PERS for the years ending

June 30, 2021, 2020, and 2019 were $2,387,200, $2,086,522, and $2,091,802, respectively, equal to the

required contributions for each year.

The Board’s total payroll for the years ended June 30, 2021, 2020, and 2019 was $82,685,129,

$81,118,158, and $78,003,413, covered payroll was $59,954,097, $58,575,783, and $55,340,573 for

TPAF; and $16,421,731, $16,048,524, and $15,522,832 for PERS.

Significant Legislation

Chapter 78, P.L. 2011, effective June 28, 2011 made various changes to the manner in which the Public

Employees’ Retirement System (PERS) and the Teacher’s Pension and Annuity Fund (TPAF) operate

and to the benefit provisions of those systems.

Chapter 78’s provisions impacting employee pension and health benefits include:

 New members of the PERS and TPAF hired on or after June 28, 2011 (Tier 5 memb

ers) will need

30

years of creditable service and age 65 for receipt of the early retirement benefit without a

reduction of ¼ of 1% for each month that the member is under age

65.

45

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

 The eligibility age to qualify for a service retirement in the systems is increased from age 63 to 65

for Tier 5 members.

 Increases in active member contribution rates. PERS active member rates increase from 5.5% of

annual compensation to 6.5% plus an additional 1% phased-in over 7 years; PFRS active

member rate increase from 8.5% to 10%. For fiscal year 2013, the member contribution rates

increased in October 2012. The phase-in of the additional incremental member contribution rates

for PERS members will take place in July of each subsequent fiscal year.

 The payment of automatic cost-of-living adjustment (COLA) additional increases to current and

future retirees and beneficiaries is suspended until reactivated as permitted by this law.

 New employee contribution requirements towards the cost of employer-provided health benefit

coverage. Employees are required to contribute a certain percentage of the cost of coverage.

The rate of contribution is determined based on the employee’s annual salary and the selected

level of coverage. The increased employee contributions will be phased in over a 4-year period

for those employed prior to Chapter 78’s effective date with a minimum contribution required to be

at least 1.5% of salary.

 In addition, this new legislation changes the method for amortizing the pension systems’

unfunded accrued liability (from a level percent of pay method to a level dollar of pay).

Chapter 1, P.L. 2010, effective May 21, 2010, made a number of changes to the State-administered

retirement systems concerning eligibility, the retirement allowance formula, the definition of

compensation, the positions eligible for service credit, the non-forfeitable right to a pension, and employer

contributions to the retirement systems.

Also, Chapter 1, P.L. 2010 changed the membership eligibility criteria for new members of PERS from the

amount of annual compensation to the number of hours worked weekly. Also, it returned the benefit

multiplier for new members of PERS and TPAF to 1/60

th

from 1/55

th

, and it provided that new members of

PERS and TPAF have the retirement allowance calculated using the average annual compensation for

the last five years of service instead of the last three years of service. New members of PERS and TPAF

will no longer receive pension service credit from more than one employer. Pension service credit will be

earned for the highest paid position only. The law also requires the State to make its full pension

contribution, defined a 1/7

th

of the required amount, beginning in fiscal years 2012.

Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement

for new members of the PERS with disability insurance coverage similar to that provided by the State to

individuals enrolled in the State’s Defined Contribution Retirement Program.

Chapter 92, P.L. 2007 implemented certain recommendations contained in the December 1, 2006 report

of the Joint Legislative Committee on Public Employee Benefits Reform; established a DCRP for elected

and certain appointed officials, effective July 1, 2007; the new pension loan interest rate became 4.69%

per year, and an $8.00 processing fee per loan was charged, effective January 1, 2008. The legislation

also removed language from existing law that permits the State Treasurer to reduce employer pension

contributions needed to fund the Funds and Systems when excess assets are available.

NOTE 10. PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)

At June 30, 2021, the District reported a liability of $35,508,255 for its proportionate share of the net

pension liability. The net pension liability was measured as of June 30, 2020, and the total pension

liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

The District’s proportion of the net pension liability was based on a projection of the District’s long-term

share of contributions to the pension plan relative to the projected contributions of all participating

employers, actuarially determined. At June 30, 2020, the District’s proportion was 0.21774340250%,

which was an increase of 2.12% from its proportion measured as of June 30, 2019.

46

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

For

the year ended June 30, 2021, the District recognized pension expense of $2,301,487. At June 30,

2021, the District reported deferred outflows of resources and deferred inflows of resources related to

PERS from the following sources:

Deferred Outflows Deferred Inflows

of Resources of Resources

Differences between expected and actual experience 646,547$ 125,573

Changes of assumptions 1,151,928 14,867,642

Net difference between projected and actual earnings

on pension plan investments 1,213,701

Changes in proportion and differences between District

contributions and proportionate share of contributions 2,871,052

District contributions subsequent to the measurement date 2,382,003

Total 8,265,231$ 14,993,215

$2,382,003 reported as deferred outflows of resources related to pensions resulting from school district

contributions subsequent to the measurement date (June 30, 2020) will be recognized as a reduction of

the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of

resources and deferred inflows of resources related to pensions will be recognized in pension expense as

follows:

Year ended

June 30,

2021 (3,345,649)$

2022 (3,116,407)

2023 (1,789,814)

2024 (716,812)

2025

(141,305)

Total

(9,109,987)$

Actuarial As

sumptions

The total pension liability for the June 30, 2020 measurement date was determined by an actuarial

valuation of July 1, 2019, which was rolled forward to June 30, 2020. This actuarial valuation used the

following assumptions, applied to all period in the measurement:

Inflation rate:

Price

2

.75%

Wage 3.25%

47

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Salary increases:

T

hrough 2026 2.00% - 6.00% (based on years of service)

Thereafter 3.00% - 7.00% (based on years of service)

Investment rate of return: 7.00%

Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee

mortality table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future

improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were

based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%

adjustment for males and 99.7% adjustment for females, and with future improvement from the base year

of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were based on

the Pub-2010 Non-Safety Disable Retiree mortality table with a 127.7% adjustment for males and 117.2%

adjustment for females, and with future improvement from the base year of 2010 on a generational basis.

Mortality improvement is based on Scale MP-2020.

The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial

experience study for the period July 1, 2014 to June 30, 2018.

In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at

June 30, 2020) is determined by the State Treasurer, after consultation with the Directors of the Division

of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long

term expected rate of return was determined using a building block method in which best-estimate ranges

of expected future real rates of return (expected returns, net of pension plan investment expense and

inflation) are developed for each major asset class. These ranges are combined to produce the long-term

expected rate of return by weighting the expected future real rates of return by the target asset allocation

percentage and by adding expected inflations. Best estimates of arithmetic real rates of return for each

major asset class included in PERS’s target asset allocation as of June 30, 2020 are summarized in the

following table:

Long-Term

Target Expected Real

Asset Class Allocation Rate of Return

US Equity 27.00% 7.71%

Non-U.S. Developed Markets Equity 13.50% 8.57%

Emerging Markets Equity 5.50% 10.23%

Private Equity 13.00% 11.42%

Real Assets 3.00% 9.73%

Real Estate 8.00% 9.56%

High Yield 2.00% 5.95%

Private Credit 8.00% 7.59%

Investment Grade Credit 8.00% 2.67%

Cash Equivalents 4.00% 0.50%

U.S. Treasuries 5.00% 1.94%

Risk Mitigation Strategies 3.00% 3.40%

48

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Dis

count Rate

The discount rate used to measure the total pension liability was 7.00% as of June 30, 2020. The

projection of cash flows used to determine the discount rate assumed that contributions from plan

members will be made at the current member contribution rates and that contributions from employers will

be made based on 78% of the actuarially determined contributions for the State employer and 100% of

actuarially determined contributions for the local employers. Based on those assumptions, the plan’s

fiduciary net position was projected to be available to make all projected future benefit payments of

current plan members. Therefore, the long-term expected rate of return on plan investments was applied

to projected benefit payments through 2057 and the municipal bond rate was applied to all projected

benefit payments to determine the total pension liability.

Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate.

The following presents the collective net pension liability of the participated employers as of June 30,

2020, calculated using the discount rate as disclosed above as well as what the collective net pension

liability would be if it was calculated using a discount rate that is 1-percentage point lower or 1-percentage

point higher than the current rate:

1% Current Discount 1%

Decrease Rate Increase

(6.00%) (7.00%) (8.00%)

District's proportionate share of

the net pension liability 42,290,234$ 35,508,255$ 29,760,961$

Pension plan fiduciary net position.

Detailed information about the pension plan’s fiduciary net position is available in the separately issued

PERS financial report.

Additional Information

Collective balances of the local group at June 30, 2020 are as follows:

Deferred outflows of resources $ 2,347,583,337.00

Deferred inflows of resources 7,849,949,467.00

Net pension liability 16,435,616,426.00

District's proportion

35,508,255

Collective pension expense for the Local Group for the measurement period ended June 30, 2020 is

$407,705,399.

The average of the expected remaining service lives of al employees that are provided with pension

through the pension plan (active and inactive employees) determined at June 30, 2020, 2019, 2018,

2017, 2016, 2015, and 2014 is 5.16, 5.21, 5.63, 5.48, 5.57, 5.72 and 6.44 years, respectively.

49

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 11. TEACHERS’ PENSION AND ANNUITY FUND (TPAF)

At June 30, 2021, the District reported a liability for its proportionate share of the net pension liability that

reflected a reduction for State pension support provided to the District. The amount recognized by the

District as its proportionate share of the net pension liability, the related State support, and the total

portion of the net pension liability that was associated with the District were as follows:

District's proportionate share of the net pension liability -$

State's proportionate share of the net position liability

associated with the District 333,278,609

Total 333,278,609$

The net pension liability was measured as of June 30, 2020 and the total pension liability to calculate the

net pension liability was determined by an actuarial valuation as of that date. The District’s proportion of

the net pension liability was based on a projection of the District’s long-term share of contributions to the

pension plan relative to the projected contributions of all participating school districts and the State,

actuarially determined. At June 30, 2020, the District’s proportion was 0.00%, which was no change from

its proportion measured as of June 30, 2019.

For the year ended June 30, 2021, the District recognized pension expense of $9,255,700 and revenue of

$9,255,700 for support provided by the State.

Actuarial assumptions. The total pension liability in the June 30, 2020 actuarial valuation was determined

by an actuarial valuation as of July 1, 2019, which was rolled forward to June 30, 2020. This actuarial

valuation used the following assumptions, applied to all period included in the measurement:

Inflation Rate

Price 2.75%

Wage 3..25%

Salary increases

Through 2026 1.55% - 4.55% (based on years of service)

Thereafter 2.75% - 5.65% (based on years of service)

Investment rate of return 7.00%

Pre-retirement mortality rates were based on the Pub-2010 Teachers Above-Median Income Employee

mortality table with a 93.9% adjustment for males and 85.3% adjustment for females, and with future

improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were

based on the Pub-2010 Teachers Above-Medan Income Healthy Retiree mortality table with a 114.7%

adjustment for males and 99.6% adjustment for females, and with future improvement from the base year

of 2010 on a generational basis. Disability mortality rates were based on the Pub-2010 Non-Safety

Disabled Retiree mortality table with a 106.3% adjustment for males and 100.3% adjustment for females,

and with future improvement from the base year of 2010 on a generational basis. Mortality improvement

is based on Scale MP-2020.

50

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial

experience study for the period July 1, 2015 to June 30, 2018.

Long-Term Expected Rate of Return

In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at

June 30, 2020) is determined by the State Treasurer, after consultation with the Directors of the Division

of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-

term expected rate of return was determined using a building block method in which best-estimate ranges

of expected future real rates of return (expected returns, net of pension plan investment expense and

inflation) are developed for each major asset class. These ranges are combined to produce the long-term

expected rate of return by weighting the expected future real rates of return by the target asset allocation

percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each

major asset class included in TPAF’s target asset allocation as of June 30, 2020 are summarized in the

following table:

Long-Term

Target Expected Real

Asset Class Allocation Rate of Return.

US Equity 27.00% 7.71%

Non-U.S. Developed Markets Equity 13.50% 8.57%

Emerging Markets Equity 5.50% 10.23%

Private Equity 13.00% 11.42%

Real Assets 3.00% 9.73%

Real Estate 8.00% 9.56%

High Yield 2.00% 5.95%

Private Credit 8.00% 7.59%

Investment Grade Credit 8.00% 2.67%

Cash Equivalents 4.00% 0.50%

U.S. Treasuries 5.00% 1.94%

Risk Mitigation Strategies 3.00% 3.40%

Disco

unt rate. The discount rate used to measure the total pension liability was 5.40% as of June 30,

2020. This single blended discount rate was based on the long-term expected rate of return on pension

plan investments of 7.00%, and a municipal bond rate of 2.21% as of June 30, 2020, based on the Bond

Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds

with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount

rate assumed that contributions from plan members will be made at the current member contribution rates

and that contributions from employers will be based on 78% of the actuarially determined contributions for

the State. Based on those assumptions, the plan’s fiduciary net position was projected to be available to

make projected future benefit payments of current plan members through 2062. Therefore, the long-term

expected rate of return on plan investments was applied to projected benefit payments through 2062, and

the municipal bond rate was applied to projected benefit payments after that date in determining the total

pension liability.

51

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate.

The following presents the District’s proportionate share of the net pension liability calculated using the

discount rate of 5.40% as well as what the District’s proportionate share of the net pension liability would

be if it were calculated using a discount rate that is 1-percentage point lower (4.40%) or 1-percentage

point higher (6.40%) than the current rate:

1% Current Discount 1%

Decrease Rate Increase

(4.40%) (5.40%) (6.40%)

District's proportionate share of the

net pension liabiltiy -$ - -

Pension plan fiduciary net position.

Detailed information about the pension plan’s fiduciary net position is available in the separately issued

TPAF financial report.

Additional Information

Collective balances of the local group at June 30, 2020 are as follows:

Deferred outflows of resources $ 9,626,548,228

Deferred inflows of resources 14,591,988,841

Net pension liablity 65,993,498,688

Collective pension expense for the plan for the measurement period ended June 30, 2019 is

$4,103,756,770.

The average of the expected remaining service lives of all employees that are provided with pension

through the pension plan (active and inactive employees) determined at June 30, 2020, 2019, 2018,

2017, 2016, 2015, and 2014 is 7.99, 8.04, 8.29, 8.30, 8.30, 8.30, and 8.5 years, respectively.

52

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 12. LABOR CONTRACTS

As of June 30, 2021, the District’s employees are organized in two collective bargaining units.

Bar

g

ainin

g

Unit Emplo

y

ees Covered Expiration

EHT Education Association

All regularly employed certified

personnel, secretarial, and

clerical personnel, and

paraprofessional. This contract

also includes regularly employed

custodial, grounds, maintenance,

and cafeteria personnel, except

supervisors.

June 30, 2022

Principals’ and Supervisors’

Association

All certified administrative

personnel, excluding the

Superintendent, Asst

Superintendents, Business

Administrator, and all employees

considered confidential b

y

law.

June 30, 2021

In addition to the above contracts, the Board of Education has entered into individual employment

agreements with the Superintendent, Assistant Superintendents, Business Administrator and Central

Office employees. The expiration of these contracts will vary depending on the position.

NOTE 13. OTHER POST-RETIREMENT BENEFITS

General Information about the OPEB Plan

The State of New Jersey Provides employer-paid coverage to members of the TPAF who retire from a

board of education or county college with 25 year of service or on a disability retirement. Under the

provision of Chapter 126, P.L. 1992, the State also provides employer-paid coverage to members of

PERS and Alternate Benefits Program (ABP) who retire from a board of education or county college with

25 years of service or on a disability retirement if the member’s employer does not provide this coverage.

Certain local participating employers also provide post-retirement medical coverage to their employees.

Retirees who are not eligible for employer paid health coverage at retirement can continue in the program

if their employer participates in this program or if they are participating in the health benefits plan of their

former employer and are enrolled in Medicare Parts A and B by paying the cost of the insurance for

themselves and their covered dependents. In Fiscal Year 2020, the State paid PRM benefits for 143,053

State and local retirees.

The State funds post-retirement medical benefits on a “pay-as-you-go” basis, which means that the State

does not pre-fund, or otherwise establish a reserve or other pool of assets against the PRM expenses

that the State may incur in future years. For Fiscal Year 2020, the State contributed $1.578 billion to pay

for pay-as-you-go PRM benefit costs incurred by covered retirees. The State’s “pay-as-you-go”

contributions have decreased from Fiscal Year 2019 amounts. Reductions are attributable to various cost

savings initiatives implemented by the State, including new Medicare Advantage contracts. The State has

appropriated $1.775 billion in Fiscal Year 2021 as the State’s contribution to fund pay-as-you-go PRM

costs.

In accordance with the provisions of GASB Statement No. 75, Accounting and Financial Reporting for

Postemployment Benefits Other Than Pensions, the State is required to quantify and disclose its

53

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

obligations to pay Other Postemployment Benefits (OPEB) to retired plan members. This new standard

supersedes the previously issued guidance, GASB Statement No. 45, Accounting and Financial

Reporting for Postemployment Benefits Other Than Pensions, effective for Fiscal Year 2018. The State is

now required to accrue a liability in all instances where statutory language names the State as the legal

obligor for benefit payments. The Fiscal Year 2020 total State OPEB liability to provide these benefits is

$65.5 billion, a decrease of $10.5 billion or 13.8 percent from the $76 billion liability recorded in Fiscal

Year 2019.

Additional information on Pensions and OPEB can be accessed at state.nj.us/treasury/pensions/financial-

reports.shtml.

Total OPEB Liability

The State, a non-employer contributing entity, is the only entity that has a legal obligation to make

employer contributions to OPEB for qualified retired PERS and TPAF participants. The LEA’s

proportionate share percentage determined under paragraphs 193 and 203 through 205 of GASBS No.

75 is zero percent. Accordingly, the LEA did not recognize any portion of the collective net OPEB liability

on the Statement of Net Position. Accordingly, the following OPEB liability note information is reported at

the State’s level and is not specific to the board of education/board of trustees. Note that actual numbers

will be published in the NJ State CAFR on the Office of Management and Budget webpage:

https://www.nj.gov/treasury/omb/cafr.shtml.

Actuarial assumptions and other imputes:

The total OPEB liability in the June 30, 2020 actuarial valuation reported by the State in the State’s most

recently issued CAFR was determined using the following actuarial assumptions and other inputs, applied

to all periods included in the measurement, unless otherwise specified:

Inflation rate – 2.50%

Salary Increases –

TPAF/ABP PERS PFRS

Through2026 1.55‐4.45% 2.00‐6.00% 3.25‐15.25%

basedonserviceyears basedonserviceyears basedonserviceyears

Thereafter 1.55‐4.45% 3.00‐7.00% Appliedtoall

basedonserviceyears basedonserviceyears futureyears

54

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Mortality Rates –

Preretirement mortality rates were based on the Pub-2010 Healthy “Teachers”

(TPAF/ABP), “General” (PERS), and “Safety” (PFRS) classification headcount-

weighted mortality table with fully generational mortality improvement projections

from the central year using Scale MP-2020. Postretirement mortality rates were

based on the Pub-2010 “General” classification headcount-weighted mortality

table with fully generational mortality improvement projections from the central

year using Scale MP-2020. Disability mortality was based on the Pub-2010

“General” classification headcount-weighted disabled mortality table with fully

generational mortality improvement projections from the central year using Scale

MP-20.

The actuarial assumptions used in the June 30, 2019 valuation were based on

the results of actuarial experience studies for the period July 1, 2015 – June 30,

2018, July 1, 2014 – June 30, 2018, and July 1, 2013 – June 30, 2018 for TPAF,

PERS, and PFRS, respectively.

Health Care Trend Assumptions –

For pre-Medicare medical benefits, the trend rate is initially 5.6% and decreases

to a 4.5% long-term trend rate after seven years. For post-65 medical benefits,

the actual fully insured Medicare Advantage trend rates for fiscal year 2021 are

reflected. The assumed post-65 medical trend is 4.5% for all future years. For

prescription drug benefits, the initial trend rate is 7.0% and decreases to a 4.5%

long-term trend rate after seven years. For the Medicare Part B reimbursement,

the trend rate is 5.0%.

Discount Rate –

The discount rate for June 30, 2020 was 2.21%. This represents the municipal

bond return rate as chosen by the Division. The source is the Bond Buyer Go 20-

Bond Municipal Bond Index, which includes tax-exempt general obligation

municipal bonds with an average rating of AA/Aa or higher. As the long-term rate

of return is less than the municipal bond rate, it is not considered in the

calculation of the discount rate, rather the discount rate is set at the municipal

bond rate.

Changes in the Total OPEB Liability reported by the State of New Jersey

Balance at 6/30/19 41,729,081,045.00$

Changes for the year:

Service cost 1,790,973,822.00

Interest 1,503,341,357.00

Differences between Expected & Actual Experiences 11,544,750,637.00

Changes in assumptions or other inputs 12,386,549,981.00

Contributions: Member 35,781,384.00

Benefit payments (1,180,515,618.00)

Net changes 26,080,881,563.00

Balance at 6/30/20 67,809,962,608.00$

55

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Sensitivity of the total OPEB liability to changes in the discount rate:

The following presents the total OPEB liability as of June 20, 2020, respectively, calculated using

a discount rate as disclosed above as well as what the total nonemployer OPEB would be if it

was calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher

than the current discount rate:

1% Decrease Discount Rate 1% Increase

(1.21%) (2.21%) (3.21%)

Total OPEB Liability

(School Retirees) 81,748,410,002.00 67,809,962,608.00 56,911,439,160.00

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates.

The following presents the total OPEB liability as of June 30, 2020c calculated using the

healthcare trend rate as disclosed above as well as what the total OPEB liability would be if it

were calculated using healthcare cost trend rates that are 1 percentage point lower or 1

percentage point higher than the current healthcare cost trend rates:

Healthcare Cost

1% Decrease Trend Rates 1% Increase

Total OPEB Liability

(School Retirees) 54,738,488,540.00 67,809,962,608.00 83,375,182,975.00

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to

OPEB

For the year ended June 30, 2021, the District recognized OPEB expense of $14,791,701 determined by

the State as the total OPEB liability for benefits provided through a defined OPEB plan that is not

administered through a trust that meets the criteria in paragraph 4 of GASB 75 and in which there is a

special funding situation.

In accordance with GASB 75, the board of education’s proportionate share of school retirees OPEB is

zero, there is no recognition of the allocation of proportionate share of deferred outflows of resources and

deferred inflows of resources. At June 30, 2020, the State reported deferred outflows of resources and

deferred inflows of resources related to retired school employees’ OPEB from the following sources:

Deferred Outflows Deferred Inflows

of Resources of Resources

Differences between expected and actual experience 10,295,318,750.00$ (9,170,703,615.00)

Changes of assumptions 11,534,251,250.00 (7,737,500,827.00)

Total 21,829,570,000.00$ (16,908,204,442.00)$

Amounts reported as deferred outflows of resources and deferred inflows of resources related to retired

school employees’ OPEB will be recognized in OPEB expense as follows:

56

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

(Contributions made after June 30, 2020 are reported as deferred outflow of resources but are not

amortized in the expense.)

Detailed information about the plan’s fiduciary net position is available in the separately issued OPEB

financial report.

NOTE 14. SPECIAL PAY DEFERRAL PLAN

Effective July 1, 2003 the District implemented a Special Pay Deferral Plan in accordance with Section

403(b) of the Internal Revenue Code. This plan will allow employees who are 50 years of age or older

and have a minimum accumulated leave of $1,000 to contribute the value of these benefits to a Tax-

Sheltered Custodial Account for distribution after the participant reaches age 70 1/2. Distribution may be

made in the form of a life annuity, 50% qualified joint and survivor annuity, installments, or as a lump sum

distribution.

NOTE 15. DEFERRED COMPENSATION

The Board offers its employees a deferred compensation plan created in accordance with Internal

Revenue Code Section 403(b). The plans, which are administered by the entities listed below, permits

participants to defer a portion of their salary until future years. Amounts deferred under the plans are not

available to employees until termination, retirement, death or unforeseeable emergency. The plan

administrators are as follows:

Equitable Van

g

uard

Lincoln Investment Plannin

g

Retirement Annuit

y

Consultants, Inc.

Siracusa Benefits Pro

g

ram TSA Consultin

g

Group

NOTE 16. COMPENSATED ABSENCES

The District accounts for compensated absences (e.g. sick leave) as directed by Governmental

Accounting Standards Board Statement No. 16 (GASB 16), “Accounting for Compensated Absences”. A

liability for compensated absences attributable to services already rendered and not contingent on a

specific event that is outside the control of the employer and employee is accrued as employees earn the

rights to the benefits.

District employees are granted vacation and sick leave in varying amounts under the District’s personnel

policies. Sick leave benefits provide for ordinary sick pay and is capped based on the various employee

contracts.

Year ended

June 30,

2021 43,440,417.00$

2022 43,440,417.00

2023 43,440,417.00

2024 43,440,417.00

2025 43,440,417.00

Thereafter 4,704,163,473.00

Total 4,921,365,558.00$

57

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

In the district-wide Statement of Net Position, the liabilities whose average maturities are greater than one

year should be reported in two components – the amount due within one year and the amount due in

more than one year.

The liability for vested compensated absences of the proprietary fund types is recorded within those funds

as the benefits accrue to employees.

NOTE 17. LITIGATION

From time to time, the District is a defendant in legal proceedings relating to its operations as a school

district. In the best judgment of the District’s management, there are potential legal proceedings that may

have a material affect on the accompanying financial statements.

NOTE 18. FUND BALANCE APPROPRIATED

General Fund (Exhibit B-1) – Of the $16,163,727 General Fund balance at June 30, 2021, $816,277 is

committed for encumbrances; $6,554,012 is restricted as excess surplus in accordance with NJSA

18A:7F-7 ($5,596,864 of the total restricted for excess surplus has been appropriated and included as

anticipated revenue for the year ending June 30, 2022);$1,440,951 has been restricted for unemployment

claims; $567,220 has been restricted in the Capital Reserve Account; $392,000 has been restricted in the

Maintenance Reserve Account; $1,000,000 has been restricted in the Emergency Reserve; $3,500,000

has been appropriated and included as anticipated revenue for the year ending June 30, 2021; and

$1,893,267 is unassigned.

Special Revenue Fund – Of the $233,773 Special Revenue fund balance a June 30, 2021, $55,648 has

been restricted for conduit activities; $461,712 has been restricted for student activities and ($283,587) is

an unassigned deficit.

Debt Service Fund – Of the $2 Debt Service Fund balance at June 30, 2021, $2 is restricted in

accordance with N.J.S.A. 7F-41c(2).

NOTE 19. CALCULATION OF EXCESS SURPLUS

The designation for Restricted Fund Balance – Excess Surplus is a required calculation pursuant to

N.J.S.A. 18A:7F-7, as amended. New Jersey school districts are required to restrict General Fund fund

balance at the fiscal year end of June 30 if they did not appropriate a required minimum amount as

budgeted fund balance in their subsequent years’ budget. The excess fund balance at June 30, 2021 is

$6,554,012, of which $5,596,864 has been included in the 2021-22 budget.

NOTE 20. ECONOMIC DEPENDENCY

The District is heavily reliant on local property taxation and State Aid to fund the District operations and

debt service. During the 2020-21 fiscal year, 98% of the Districts operations were funded through

property taxes and State aid.

NOTE 21. RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of

assets; errors and omissions; injuries to employees; and natural disasters.

58

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

Property and Liability Insurance – The District maintains commercial insurance coverage for property,

liability and surety bonds. During the fiscal year ended June 30, 2021 the District did not incur claims in

excess of their coverage and the amount of coverage did not significantly decrease.

New Jersey Unemployment Compensation Insurance – The District has elected to fund its New Jersey

Unemployment Compensation Insurance under the “Benefit Reimbursement Method”. Under this plan,

the District is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its

former employees and charged to its account with the State. The District is billed quarterly for amounts

due to the State. The following is a summary of District contributions, employee contributions,

reimbursements to the State for benefits paid and the ending balance of the District’s fund for the current

and prior year:

Distric

t

Emplo

y

ee

A

moun

t

Endin

g

Fiscal Year Contributions Contributions Reimbursed Balance

2020-2021 None 189,433 11,098 1,440,951

2019-2020 None 132,983 17,804 1,394,899

2018-2019 None 95,233 10,896 1,347,043

Worker’s Compensation Fund – Through February 1, 1999, the District retained risk through an

established self-funded workers compensation fund with Berkley Risk Managers, Inc. Premiums were

paid into the fund and were available to pay claims, claim reserves and administrative costs of the

program. The Board currently maintains traditional insurance for its worker’s compensation coverage.

Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be

reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.

Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including

frequency and amount of payouts and other economic and social factors. The workers compensation

account is reported in the general fund. Only amounts that are current liabilities have been included as a

charge against the budget line item. For the fiscal year ended June 30, 2021, $0 was charged to the

worker’s compensation budget line item. The balance of estimated unpaid claims and settlement

expense as of June 30, 2021 and 2020 was $65,729 and $65,729, respectively. There is a potential

contingent liability that exceeds the amount the District has in the worker’s compensation fund.

Fiscal Year Balance Received Claims Claims Balance

Ended

Be

g

innin

g

of Year From Carrier Incurred Paid End of Year

6/30/21 119,883 1,054 - - 120,937

6/30/20 117,933 1,950 - - 119,883

6/30/19 65,729 52,504 - - 117,933

59

Egg Harbor Township School District

Notes to Financial Statements

June 30, 2021

NOTE 22. INTERFUND RECEIVABLES AND PAYABLES

As of June 30, 2021, several interfunds remained on the various balance sheets of the Egg Harbor

Township Board of Education.

FromTo

General Fund:

Special Revenue Fund 1,095,140

Enterprise Fund 78,037

Special Revenue Fund:

General Fund 1,095,140

Enterprise Fund:

General Fund 78,037

$1,173,117 1,173,177

All interfunds are created as a result of timing differences between cash requirements in various funds

and the receipt of cash from funding agencies. It is anticipated that all interfunds will be liquidated during

the fiscal year.

NOTE 23. RESTATEMENT OF PRIOR YEAR BALANCES

Net Position and Fund Balance have been restated as required by the implementation of GASB 84.

Governmental Special

Activities Net General Revenue

Position Fund Balance Fund Balance

Beginning fund balance as previously reported at June 30, 2020

58,141,483$ 12,708,536 -

Implementation GASB 84 - Restatement of Prior Year Balances Required

Conduit Fund 95,578 95,578

Student Activities 399,067 399,067

Unemployment Fund 1,394,899 1,394,899

Total restatement 1,889,544 1,394,899 494,645

Fund Balance as restated, July 1, 2020 60,031,027$ 14,103,435 494,645

NOTE 24. SUBSEQUENT EVENTS

The District has evaluated subsequent events through February 21, 2022, the date which the financial

statements were available to be issued and no items were noted for disclosure or adjustment.

60

Required Supplementary Information

Part II

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

BUDGETARY COMPARISON SCHEDULES

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

REVENUES:

Local Sources:

Local Tax Levy 81,038,032$ 81,038,032 81,038,032 -

Tuition - Individuals 96,000 96,000 - (96,000)

Tuition - Other LEA's within the State 203,000 203,000 409,897 206,897

Tuition from Other Government Sources - - 224,625 224,625

Rents and Royalties 50,000 50,000 19,162 (30,838)

Interest Earned on Capital Reserve Funds 2,000 2,000 2,000 -

Interest Earned on Maintenance Reserve Funds 1,000 1,000 1,000 -

Other Restricted Miscellaneous Revenue - 46,052 46,052

Miscellaneous 397,000 - 397,000 536,446 139,446

Total - Local Sources 81,787,032 - 81,787,032 82,277,214 490,182

State Sources:

Equalization Aid 44,917,202 (4,108,310) 40,808,892 40,808,892 -

Categorical Special Education Aid 4,443,028 4,443,028 4,443,028 -

Categorical Transportation Aid 3,273,116 3,273,116 3,273,116 -

Unde

r Adequacy Aid - - -

Categorical Security Aid 1,547,671 1,547,671 1,547,671 -

Extraordinary Aid 400,000 400,000 1,958,338 1,558,338

PARCC Readiness - - -

Per Pupil Growth Aid - - -

Professional Learning Community Aid - - -

Lead Water Testing for Schools Aid - - -

Nonpublic School Transportation Aid - - 112,483 112,483

On-Behalf TPAF Pension Contributions (non-budgeted) - - 15,089,788 15,089,788

On-Behalf TPAF Post-Retirement Medical Contribution (non-budgeted) - - 4,728,904 4,728,904

On-Behalf TPAF Long-Term Disability Ins. Contribution (non-budgeted) - - 6,444 6,444

Reimbursed TPAF Social Security Contributions (non-budgeted) - - 4,331,223 4,331,223

Total - State Sources 54,581,017 (4,108,310) 50,472,707 76,299,887 25,827,180

Federal Sources:

Medical Assistance Program 170,928 170,928 270,757 99,829

ARRA/SEMI Unrestricted - - -

Total - Federal Sources 170,928 - 170,928 270,757

99,829

Total Revenues 136,538,977 (4,108,310) 132,430,667 158,847,858 26,417,191

61

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

EXPENDITURES:

Current Expense:

Regular Programs - Instruction:

Salaries of Teachers:

Preschool 495,326 (239,000) 256,326 249,413 6,913

Kindergarten 1,915,586 (207,386) 1,708,200 1,707,377 823

Grades 1-5 12,026,493 (181,630) 11,844,863 11,639,950 204,913

Grades 6-8 8,921,768 (8,517) 8,913,251 8,803,407 109,844

Grades 9-12 12,081,971 (189,044) 11,892,927 11,830,975 61,952

Regular Programs - Home Instruction:

Salaries of Teachers 298,087 (120,612) 177,475 19,262 158,213

Purchased Professional - Educational Services 29,909 - 29,909 9,885 20,024

Regular Programs - Undistributed Instruction:

Other Salaries for Instruction 311,913 (166,000) 145,913 145,404 509

Purchased Professional - Educational Services 1,373,939 1,237,135 2,611,074 2,559,997 51,077

Other Purchased Services 17,500 - 17,500 769 16,731

General Supplies 1,339,621 (383,266) 956,355 622,664

333,691

T

extbooks 137,629 (86,138) 51,491 34,730 16,761

Total Regular Programs 38,949,742 (344,458) 38,605,284 37,623,833 981,451

Special Education - Instruction:

Multiple Disabilities

Salaries of Teachers 1,726,158 (62,570) 1,663,588 1,663,588 -

Other Salaries for Instruction 61,315 815,862 877,177 877,177 -

General Supplies 33,678 (10,674) 23,004 14,017 8,987

Textbooks 5,395 - 5,395 - 5,395

Total Multiple Disabilities 1,826,546 742,618 2,569,164 2,554,782 14,382

62

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Resource Room/Resource Center

Salaries of Teachers 8,265,483 - 8,265,483 7,815,129 450,354

Other Salaries for Instruction 303,222 74,379 377,601 377,601 -

General Supplies 54,734 (33,421) 21,313 14,582 6,731

Textbooks 3,590 - 3,590 1,593 1,997

Total Resource Room/Resource Center 8,627,029 40,958 8,667,987 8,208,905 459,082

Preschool Disabilities - Full Time

Salaries of Teachers 472,702 - 472,702 442,327 30,375

Other Salaries for Instruction 792,150 - 792,150 635,378 156,772

General Supplies 56,400 (25,000) 31,400 5,974 25,426

Total Preschool Disabilities - Full Time 1,321,252 (25,000) 1,296,252 1,083,679 212,573

Total Special Education - Instruction 11,774,827 758,576 12,533,403 11,847,366 686,037

Basic Skills/Remedial - Instruction

Salaries of Teachers 1,675,598 (199,849) 1,475,749 1,430,952 44,797

General Supplies - - - -

T

otal Basic Skills/Remedial - Instruction 1,675,598 (199,849) 1,475,749 1,430,952 44,797

Bilingual Education - Instruction:

Salaries of Teachers 917,766 (17,862) 899,904 839,529 60,375

General Supplies 6,619 1,510 8,129 5,009 3,120

Textbooks 1,420 8,439 9,859 4,228 5,631

Total Bilingual Education - Instruction 925,805 (7,913) 917,892 848,766 69,126

63

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

School Sponsored Cocurricular Activities - Instruction:

Salaries 291,811 - 291,811 228,574 63,237

Purchased Services 6,885 - 6,885 4,018 2,867

Supplies and Materials 17,975 (7,789) 10,186 7,246 2,940

Other Objects 1,000 - 1,000 675 325

Total School Sponsored Cocurricular Activities - Instruction 317,671 (7,789) 309,882 240,513 69,369

School-Sponsored Athletics - Instruction

Salaries 590,041 (43,649) 546,392 513,026 33,366

Purchased Services 26,790 - 26,790 19,275 7,515

Supplies and Materials 117,768 (27,847) 89,921 83,036 6,885

Other Objects 38,625 - 38,625 16,680 21,945

Transfers to Cover Deficit (Agency Funds) 82,899 (11,581) 71,318 40,440 30,878

Total School-Sponsored Athletics - Instruction 856,123 (83,077) 773,046 672,457 100,589

Alternative Education Program

Salaries 499,201 1,000 500,201 500,201 -

Purchased Professional & Technical Services 7,000 - 7,000 -

7,000

General Supplies 20,655 - 20,655 12,765 7,890

Textbooks - - - -

Total Alternative Education Program 526,856 1,000 527,856 512,966 14,890

Total Instruction 55,026,622 116,490 55,143,112 53,176,853 1,966,259

Undistributed Expenditures - Instruction:

Tuition to Other LEAs Within the State - Regular 157,874 - 157,874 140,011 17,863

Tuition to Other LEAs Within the State - Special - 2,766 2,766 2,766 -

Tuition to County Voc. School Dist. - Regular 1,307,707 - 1,307,707 1,307,707 -

Tuition to County Voc. School Dist. - Special 141,277 (21) 141,256 141,255 1

Tuition to CSSD & Regional Day Schools 1,184,007 (502,505) 681,502 118,078 563,424

Tuition to Private Schools for the Disabled - Within State 2,136,011 (1,228,088) 907,923 - 907,923

Tuition to Private Schools Disabled & Other LEAs-

Special - Outside State - 38,138 38,138 - 38,138

Tuition - State Facilities 177,541 - 177,541 112,541 65,000

Total Undistributed Expenditures - Instruction 5,104,417

(1,689,710) 3,414,707 1,822,358 1,592,349

64

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Undistributed Expenditures - Attendance and Social Work:

Salaries 307,940 1,168 309,108 309,108 -

Other Purchased Services 3,348 - 3,348 2,960 388

Supplies and Materials 5,877 (2,942) 2,935 2,828 107

Total Undistributed Expenditures - Attendance and Social Work 317,165 (1,774) 315,391 314,896 495

Undistributed Expenditures - Health Services:

Salaries 1,078,562 - 1,078,562 1,057,871 20,691

Purchased Professional and Technical Services 42,290 - 42,290 30,064 12,226

Supplies and Materials 14,713 (3,678) 11,035 9,859 1,176

Total Undistributed Expenditures - Health Services 1,135,565 (3,678) 1,131,887 1,097,794 34,093

Undistributed Expenditures - Other Support Services -

Students - Related Services:

Salaries of Other Professional Staff 2,017,990 (247,646) 1,770,344 1,770,344 -

Purchased Professional - Educational Services 239,150 - 239,150 226,563 12,587

Supplies and Materials 35,621 (8,905) 26,716 21,126 5,590

Total Undistributed Expenditures - Other Support Services -

Students - Related Services 2,292,761 (256,551) 2,036,210 2,018,033 18,177

Undistributed Expenditures - Other Support Services -

St

udents - Extra Services:

Salaries 4,225,044 (947,589) 3,277,455 3,031,536 245,919

Purchased Professional - Educational Services 798,645 (465,000) 333,645 295,299 38,346

Supplies and Materials 10,379 (2,500) 7,879 1,753 6,126

Total Undistributed Expenditures - Other Support Services -

Extra Services 5,034,068 (1,415,089) 3,618,979 3,328,588 290,391

65

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Undistributed Expenditures - Other Support Services -

Guidance

Salaries of Other Professional Staff 2,314,422 (763) 2,313,659 2,098,634 215,025

Salaries of Secretarial and Clerical Assistants 194,976 763 195,739 195,739 -

Other Purchased Professional and Technical Services 14,768 (1,167) 13,601 10,554 3,047

Other Purchased Services 103 1,167 1,270 1,270 -

Supplies and Materials 16,618 (4,062) 12,556 4,749 7,807

-

Total Undistributed Expenditures - Other Support Services -

Guidance 2,540,887 (4,062) 2,536,825 2,310,946 225,879

Undistributed Expenditures - Other Support Services -

Child Study Teams

Salaries of Other Professional Staff 2,544,645 - 2,544,645 2,486,055 58,590

Salaries of Secretarial and Clerical Assistants 511,609 - 511,609 456,617 54,992

Other Salaries 1,050 - 1,050 1,000 50

Other Purchased Professional and Technical Services 86,000 - 86,000 64,043 21,957

Other Purchased Services 64,259 - 64,259 31,881 32,378

Supplies and Materials 31,049 (5,410) 25,639 24,889 750

Total Undistributed Expenditures - Other Support Services -

Child Study Teams 3,238,612 (5,410)

3,233,

202 3,064,485 168,717

Undistributed Expenditures - Improvement of Instruction Services:

Salaries of Supervisors of Instruction 1,256,189 - 1,256,189 1,211,644 44,545

Salaries of Other Professional Staff 286,250 - 286,250 286,250 -

Supplies and Materials 4,000 (1,000) 3,000 284 2,716

Total Undistributed Expenditures - Improv. of Instr. Services 1,546,439 (1,000) 1,545,439 1,498,178 47,261

66

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Undistributed Expenditures - Educational Media Services -

School Library

Salaries 1,012,696 (14,892) 997,804 944,308 53,496

Salaries of Technology Coordinators 105,480 - 105,480 105,277 203

Purchased Professional and Technical Services 309,550 (100,514) 209,036 - 209,036

Other Purchased Services 13,912 1,018 14,930 13,910 1,020

Supplies and Materials 120,549 (34,593) 85,956 32,000 53,956

Other Objects 18,950 - 18,950 5,093 13,857

Total Undistributed Expenditures - Educational Media Services -

School Library 1,581,137 (148,981) 1,432,156 1,100,588 331,568

Undistributed Expenditures - Instructional Staff Training Services

Salaries of Supervisors of Instruction 148,320 - 148,320 147,825 495

Salaries of Other Professional Staff 77,560 (50,000) 27,560 15,345 12,215

Purchased Professional - Educational Services 279,959 (13,000) 266,959 234,470 32,489

Other Purchased Services 12,500 - 12,500 1,369 11,131

Supplies and Materials 8,000 (2,000) 6,000 249 5,751

Total Undistributed Expenditures - Instructional Staff Training Srvc 526,339 (65,000) 461,

339 399,258 62,081

Undistributed Expenditures - Support Services - Gen. Admin.:

Salaries 779,112 14,337 793,449 793,449 -

Legal Services 340,140 - 340,140 256,874 83,266

Audit Fees 45,000 (2,612) 42,388 36,000 6,388

Architectural/Engineering Services 20,000 2,612 22,612 3,000 19,612

Other Purchased Professional Services 22,495 - 22,495 22,464 31

Communications/Telephone 217,899 (14,336) 203,563 191,079 12,484

Miscellaneous Purchased Services 371,986 (40,283) 331,703 316,299 15,404

General Supplies 9,880 (2,560) 7,320 7,082 238

BOE In-House Training/Meeting Supplies 5,000 (1,250) 3,750 2,585 1,165

Miscellaneous Expenditures 16,000 1,155 17,155 12,754 4,401

BOE Membership Dues and Fees 40,000 - 40,000 27,508 12,492

Total Undistributed Expenditures - Support Services - Gen. Admin. 1,867,512 (42,937) 1,824,575 1,669,094 155,481

67

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Undistributed Expenditures - Support Serv. - School Admin.:

Salaries of Principals/Assistant Principals/Prog Dir 2,143,394 (37,068) 2,106,326 2,090,932 15,394

Salaries of Other Professional Staff 373,017 - 373,017 354,646 18,371

Salaries of Secretarial and Clerical Assistants 1,294,929 - 1,294,929 1,277,630 17,299

Purchased Professional and Technical Services 42,300 2,031 44,331 44,330 1

Other Purchased Services 148,899 (4,674) 144,225 130,442 13,783

Supplies and Materials 50,295 (9,899) 40,396 30,521 9,875

Other Objects 55,060 - 55,060 40,796 14,264

Total Undistributed Expenditures - Support Serv. - School Admin. 4,107,894 (49,610) 4,058,284 3,969,297 88,987

Undistributed Expenditures - Central Services

Salaries 744,476 (6,000) 738,476 738,383 93

Purchased Technical Services 57,428 (8,600) 48,828 42,277 6,551

Miscellaneous Purchased Services (400-500 series) 162,403 (7,935) 154,468 149,829 4,639

Supplies and Materials 15,000 (3,750) 11,250 8,933 2,317

Other Objects 8,000 -

8,000 3,025 4,975

Total Undistributed Expenditures - Central Services 987,307 (26,285) 961,022 942,447 18,575

Undistributed Expenditures - Administrative Information Technology

Salaries 363,993 13,935 377,928 377,928 -

Purchased Technical Services 38,630 4,540 43,170 43,163 7

Supplies and Materials 76,400 (52,500) 23,900 23,397 503

Total Undistributed Expenditures - Admin. Information Technology 479,023 (34,025) 444,998 444,488 510

Undistributed Expenditures - Required Maint for School Facilities

Salaries 764,421 15,222 779,643 779,381 262

Cleaning, Repair, and Maintenance Services 953,973 138,256 1,092,229 967,990 124,239

General Supplies 184,310 2,660 186,970 181,780 5,190

Other Objects 2,250 606 2,856 2,856 -

Total Undistributed Expenditures - Required Maint for

School Facilities 1,904,954 156,744 2,061,698 1,932,007 129,691

68

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Undistributed Expenditures - Custodial Services

Salaries 4,466,482 - 4,466,482 4,461,406 5,076

Cleaning, Repair and Maintenance Services 261,821 (36,751) 225,070 213,827 11,243

Rental of Land & Building Other than Lease Purch Agmt 1,043,679 8,258 1,051,937 1,051,936 1

Other Purchased Property Services 184,683 (79,824) 104,859 103,691 1,168

Insurance 509,008 (129,031) 379,977 377,476 2,501

Miscellaneous Purchased Services 400 - 400 - 400

General Supplies 307,665 80,967 388,632 380,940 7,692

Energy (Natural Gas) 553,100 59,288 612,388 611,437 951

Energy (Electricity) 1,542,339 (165,646) 1,376,693 1,331,115 45,578

Energy (Oil) 1,866 - 1,866 819 1,047

Other Objects 2,835 (606) 2,229 2,219 10

Total Undistributed Expenditures - Custodial Services 8,873,878 (263,345) 8,610,533 8,534,866 75,667

Undistributed Expenditures - Care & Upkeep of Grounds

Sa

laries 425,069 (20,222) 404,847 397,222 7,625

Cleaning, Repair and Maintenance Services 42,562 (6,572) 35,990 32,805 3,185

General Supplies 101,672 (18,718) 82,954 82,708 246

Total Undistributed Expenditures - Care & Upkeep of Grounds 569,303 (45,512) 523,791 512,735 11,056

Undistributed Expenditures - Security

Salaries 464,487 (104,293) 360,194 315,618 44,576

Cleaning, Repair and Maintenance Services 183,907 (17,100) 166,807 146,847 19,960

General Supplies 12,400 (2,900) 9,500 7,458 2,042

Other Objects 3,495 (1,404) 2,091 106 1,985

Total Undistributed Expenditures - Security 664,289 (125,697) 538,592 470,029 68,563

Total Undistributed Expenditures - Oper & Main of Plant Services 12,012,424 (277,810) 11,734,614 11,449,637 284,977

Undistributed Expenditures - Student Transportation Services:

Sal for Pupil Transp (Between Home and School)-Reg. 2,724,473 (153,200) 2,571,273 2,496,598 74,675

Sal for Pupil Transp (Between Home and School)-Sp Ed 535,084 (180,

000) 355,084 345,160 9,924

Sal for Pupil Transp (Other than Bet. Home & School) 208,475 (138,000) 70,475 50,988 19,487

Other Purchased Professional and Technical Services 23,938 (1,228) 22,710 22,709 1

Cleaning, Repair, and Maintenance Services 186,983 (602) 186,381 116,757 69,624

Lease Purchase Payments - School Buses 1,034,778 55,331 1,090,109 1,090,108 1

69

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Contracted Services - (Between Home and School) - Joint Agree. 386,733 (235,551) 151,182 120,134 31,048

Contracted Services - (Between Home and School) - Vendors 16,800 318,869 335,669 335,669 -

Contracted Services - (Special Ed Students) - Vendors 50,000 310,000 360,000 357,096 2,904

Contracted Services - (Special Ed Students) - Joint Agree. 2,253,860 (1,033,331) 1,220,529 1,170,300 50,229

Contracted Services - Aid in Lieu of Payments - Nonpublic Schools 223,900 - 223,900 143,358 80,542

Contracted Services - Aid in Lieu of Payments - Charter School 29,000 - 29,000 4,430 24,570

Contracted Services - Aid in Lieu of Payments - Choice School 22,000 - 22,000 8,580 13,420

Miscellaneous Purchased Services - Transportation 157,638 - 157,638 157,509 129

Supplies and Materials 8,300 (2,075) 6,225 5,545 680

Transportation Supplies 884,528 (433,508) 451,020 348,850 102,170

Miscellaneous Expenditures 10,450 - 10,450 7,791 2,659

Total Undistributed Expenditures - Student Transportation Serv. 8,756,940 (1,493,295) 7,263,645 6,781,582 482,063

U

nallocated Benefits:

Social Security Contributions 1,635,402 (155,560) 1,479,842 1,459,452 20,390

Other Retirement Contributions - PERS 2,533,800 (145,000) 2,388,800 2,387,200 1,600

Other Retirement Contributions - Regular 85,251 1,389 86,640 86,639 1

Workmen's Compensation 1,400,866 (2,045) 1,398,821 1,398,821 -

Health Benefits 24,082,209 812,969 24,895,178 24,895,177 1

Tuition Reimbursement 108,443 5,560 114,003 95,730 18,273

Other Employee Benefits 289,500 (73,000) 216,500 216,392 108

Unused Sick Payment to Terminated/Retied Staff 237,336 (12,000) 225,336 224,775 561

Total Unallocated Benefits 30,372,807 432,313 30,805,120 30,764,186 40,934

On-behalf TPAF Pension Contributions (non-budgeted) 15,089,788 (15,089,788)

On-Behalf TPAF Post-Retirement Medical Contribution (non-budgeted) 4,728,904 (4,728,904)

On-Behalf TPAF Long-Term Disability Ins. Contribution (non-budgeted) 6,444 (6,444)

Reimbursed TPAF Social Security Contributions (non-budgeted) 4,331,223 (4,331,223)

T

otal On-behalf Contributions - - - 24,156,359 (24,156,359)

Total Undistributed Expenditures 81,901,297 (5,082,904) 76,818,393 97,132,214 (20,313,821)

Interest Earned on Maintenance Reserve 1,000 - 1,000 1,000 -

Total Current Expense 136,928,919 (4,966,414) 131,962,505 150,310,067 (18,347,562)

Capital Outlay:

Interest Deposit to Capital Reserve 2,000 - 2,000 2,000 -

Total Interest Deposit to Capital Reserve 2,000 - 2,000 2,000 -

70

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Equipment:

Undistributed Expenditures:

Grades 1-5 - - - -

Grades 6-8 5,000 1,941 6,941 6,940 1

Grades 9-12 17,800 (14,505) 3,295 3,295 -

Support Services - Regular - - - -

Undist. Expend. - Instruction 22,975 - 22,975 - 22,975

Undist. Expend. - Attendance & Social Work - - -

Undist. Expend. - Admin Info Tech. 54,558 - 54,558 54,558 -

Undist. Expend. - Required Maint for School Facilities 36,553 13,588 50,141 50,140 1

Undist. Expend. - Care and Upkeep of Grounds - 10,542 10,542 10,542 -

Undist. Expend. - Security - 5,404 5,404 - 5,404

Undist. Expend. - Student Trans. - Non Ins 66,584 (5,000) 61,584 61,584 -

Total Equipment 203,470 11,970 215,440 187,059 28,381

Facilities Acquisition and Construction Services:

Architectural/Engineering Services 6,115 3,339 9,454 6,836 2,618

Construction Services 635,594 1,866,660 2,502,254 2,144,784 357,470

Other Objects - Debt Service Assessment 543,141 - 543,141 543,

141 -

Total Facilities Acquisition and Construction Services 1,184,850 1,869,999 3,054,849 2,694,761 360,088

Assets Acquired Under Capital Leases (non-budgeted):

Undistributed Expenditures:

Instructional Equipment - - -

Total Assets Acquired Under Capital Leases (non-budgeted) - - - - -

Total Capital Outlay 1,390,320 1,881,969 3,272,289 2,883,820 388,469

Transfer to Charter Schools 2,593,957 - 2,593,957 2,242,784 351,173

Total Expenditures 140,913,196 (3,084,445) 137,828,751 155,436,671 (17,607,920)

Excess (Deficiency) of Revenues Over (Under) Expenditures (4,374,219) (1,023,865) (5,398,084) 3,411,187 8,809,271

71

Exhibit C-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2021

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

Other Financing Sources (Uses):

Transfers Out:

Special Revenue Fund - Inclusive Students (846,134) (846,134) (846,134) -

Capital Reserve transfer to capital outlay 1,869,999 1,869,999 1,869,999 -

Capital Reserve transfer to capital projects - (1,869,999) (1,869,999)

Excess (Deficiency) of Revenues and Other Financing Sources

Over (Under) Expenditures and Other Financing Uses (4,374,219) - (4,374,219) 2,565,053 6,939,272

Fund Balances, July 1 17,232,541 - 17,232,541 17,232,541 -

Restatement 1,394,899 1,394,899 1,394,899 -

Fund Balances, July 1, Restated 18,627,440 - 18,627,440 18,627,440 -

Fund Balances, June 30 14,253,221$ - 14,253,221 21,192,493 6,939,272

Recapitulation of Fund Balance:

Restricted Fund Balance:

Reserve for Excess Surplus 957,148

Excess Surplus-Designated for Subsequent Year's Expenditures 5,596,864

Reserve for Capital Reserve 567,220

Reserve for Maintenance Reserve 392,000

Reserve for Emergency Reserve 1,000,000

Reserve for Unemployment Compensation 1,440,951

Assigned Fund Balance:

Year-end Encumbrances 816,277

Designated for Subsequent Year's Expenditures 3,500,000

Unassigned Fund Balance 6,922,033

21,192,493

Reconciliation to Governmental Funds Statements (GAAP)

Last State Aid Payment Not Recognized on GAAP Basis (5,028,

766)

16,163,727$

72

Exhibit C-2

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

REVENUES:

Local Sources:

Revenue from Local Sources 49,732$ 3,744 53,476 464,859 411,383

Total - Local Sources 49,732 3,744 53,476 464,859 411,383

State Sources:

Preschool Expansion Grant - 2,835,866 2,835,866 1,600,081 (1,235,785)

Nonpublic aid 188,021 95,945 283,966 265,364 (18,602)

Total - State Sources 188,021 2,931,811 3,119,832 1,865,445 (1,254,387)

Federal Sources:

Title I 1,030,459 425,287 1,455,746 1,378,878 (76,868)

Title II 270,386 41,204 311,590 208,432 (103,158)

Title III 42,128 29,457 71,585 59,073 (12,512)

Title IV - 21st Century 609,719 609,719 335,797 (273,922)

Title VI - - -

CARES Act 486,020 656,501 1,142,521 1,137,323 (5,198)

Nonpublic Corona Relief Fund Techhology 18,793 18,793 18,689

(104)

Digital Divide 663,860 663,860 663,258 (602)

Corona Virus Relief Fund 596,083 596,083 596,083 -

CARES Act - ESSER II 4,247,076 4,247,076 1,098,100 (3,148,976)

Learning Acceleration Grant 272,555 272,555 33,389 (239,166)

CTE Bridge Externship 17,500 17,500 7,905 (9,595)

Mental Health Grant 45,000 45,000 - (45,000)

I.D.E.A., Part B 1,430,593 623,210 2,053,803 1,936,797 (117,006)

Vocational Education 48,230 10,490 58,720 52,602 (6,118)

Total - Federal Sources 3,307,816 8,256,735 11,564,551 7,526,326 (4,038,225)

Total Revenues 3,545,569 11,192,290 14,737,859 9,856,630 (4,881,229)

EXPENDITURES:

Instruction

Salaries of Teachers 1,927,881 331,063 2,258,944 1,628,001 630,943

Other Salaries for Instruction 708,740 708,740 246,826 461,914

Purchased Professional and Technical Services 454,704 454,704

147,513 307,191

Other Purchased Services (400-500 series) 1,603,062 3,928,188 5,531,250 3,622,870 1,908,380

General Supplies 2,936,899 2,936,899 1,773,156 1,163,743

Textbooks 14,626 11,765 26,391 26,358 33

Other objects 18,200 18,200 - 18,200

Total instruction 3,545,569 8,389,559 11,935,128 7,444,724 4,490,404

For the Fiscal Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

Special Revenue Fund

73

Exhibit C-2

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

For the Fiscal Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

Special Revenue Fund

EXPENDITURES (CONT'D):

Support Services

Salaries of Supervisors of Instruction 15,000 15,000 15,000 -

Salaries of Program Directors 45,000 45,000 12,131 32,869

Salaries of Other Professional Staff 633,250 633,250 511,527 121,723

Salaries of Secretarial and Clerical Assistants 20,000 20,000 17,561 2,439

Other Salaries 59,324 59,324 46,976 12,348

Salaries of Masters Teachers 70,000 70,000 69,540 460

Personal Services - Employee Benefits 979,811 979,811 715,810 264,001

Purchased Professional/Educational Services 842,106 842,106 686,765 155,341

Purchased Technical Services 137,074 137,074 48,368 88,706

Purchased Property Services - -

Travel 3,128 3,128 - 3,128

Other purchased Services (400-500 series) 295,112 295,112 191,612 103,500

Supplies & Materials 203,354 203,354 141,947 61,407

Other Objects - - -

Conduit Expenses -

44,378 (44,378)

Student Activities/Athletics - 393,804 (393,804)

Total support services - 3,303,159 3,303,159 2,895,419 407,740

Facilities acquisition and construction services:

Instructional Equipment 331,706 331,706 327,657 4,049

Noninstructional Equipment 14,000 14,000 12,249 1,751

Total facilities acquisition and construction services - 345,706 345,706 339,906 5,800

Transfers to Charter Schools - - -

Total expenditures 3,545,569 12,038,424 15,583,993 10,680,049 4,903,944

Other Financing Sources (Uses)

General Fund - Preschool Education 846,134 846,134 846,134 -

Excess (Deficiency) of Revenues Over (Under) Expenditures -$ - - 22,715 22,715

Fund Balance, July 1 -

Restatement 494,645.00

Fund Balance , July 1 (Restated) 494,645.00

Fund Balance, June 30 517,360.00

Recapitulation:

Restricted:

Conduit 55,648.00

Stuident Activities 461,712.00

Total Fund Balance 517,360.00

74

Exhibit C-3

Note A - Explanation of Difference between Budgetary Inflows and

Outflows and GAAP Revenues and Expenditures

General Special

Fund Revenue

Sources/inflows of resources

Actual amounts (budgetary basis) "revenue" from the budgetary

comparison schedule 158,847,858$ 9,856,630

Difference - budget to GAAP:

Grant accounting budgetary basis differs from GAAP in that

encumbrances are recognized as expenditures, and the

related revenue is recognized

Prior year 5,310

Current year (342,818)

State aid payment rcognized for GAAP statements in

the current year, previously recognized for budgetary

purposes. 4,524,005 -

State aid payment recognized for budgetary purposes,

not recognized for GAAP statements until the

subsequent year. (5,028,766) (283,587)

Total revenues reported on the statement of revenues,

expenditures and changes in fund balances -

governmental funds 158,343,097 9,235,535

Uses/outflows of resources

Actual amounts (budgetary basis) "total outflows" from the

budgetary comparison schedule 155,436,671 10,680,049

Differences - budget to GAAP:

Encumbrances for supplies and equipment ordered but

not received are reported in the year the order is placed

for budgetary purposes, but in the year the supplies

are received for financial reporting purposes

Prior year 5,310

Current year (342,818)

Pension expense recognized for GAAP but not for

budgetary purposes. -

Total expenditures as reported on the statement of revenues,

expenditures, and changes in fund balances -

governmental funds 155,436,671$ 10,342,541

For the Fiscal Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Required Supplementary Information

Budgetary Comparison Schedule

Notes to Required Supplementary Information

75

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Required Supplementary Information

Part III

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

L-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Schedule of the District's Proportionate Share of the Net Pension Liability

Public Employee Retirement System

Last Eight Fiscal Years

2020 2019 2018 2017 2016 2015 2014 2013

District's proportion of the net pension

liability (asset) 0.2177434025% 0.2132299176% 0.2088348448% 0.2016466656% 0.1929449075% 0.1846447919% 0.1823522927% 0.1762768420%

District's proportionate of the net pension

liability (asset) 35,508,255$ 38,420,796$ 41,118,540$ 46,940,121$ 57,144,747$ 32,618,264$ 34,141,337$ 33,690,007$

District's covered payroll 16,421,731$ 16,048,524$ 14,784,203$ 14,455,418$ 13,586,006$ 12,921,914$ 12,372,353$ 12,234,369$

District's proportionate share of the net

pension liability (asset) as a percentage

of its covered-employee payroll 216.23% 239.40% 278.12% 324.72% 420.61% 252.43% 275.95% 275.37%

Plan fiduciary net position as a

percentage of the total pension

liability 58.32% 56.27% 53.60% 48.10% 40.14% 47.93% 52.08% 48.72%

Source: GASB 68 report on Public Employees' Retirement System; District records

Note: This schedule is required by GASB 68 to show information for a 10 year period.

However, information is only available for eight years.

Additional years will be presented as they become available.

76

L-2

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Schedule of District Contributions

Public Employee Retirement System

Last Eight Fiscal Years

2020 2019 2018 2017 2016 2015 2014 2013

Contractually required contribution 2,382,003$ 2,074,099$ 2,077,232$ 1,868,041$ 1,587,450$ 1,407,927$ 1,328,210$ 1,223,404$

Contributions in relation to the contractually

required contribution 2,382,003$ 2,074,099$ 2,077,232$ 1,868,041$ 1,587,450$ 1,407,927$ 1,328,210$ 1,223,404$

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$

District's covered-employee payroll 16,421,731$ 16,048,524$ 14,784,203$ 14,455,418$ 13,586,006$ 12,921,914$ 12,372,353$ 12,234,369$

Contributions as a percentage of

covered-employee payroll 14.51% 12.92% 14.05% 12.92% 11.68% 10.90% 10.74% 10.00%

Source: GASB 68 report on Public Employees' Retirement System; District records

Note: This schedule is required by GASB 68 to show information for a 10 year period.

However, information is only available for eight years.

Additional years will be presented as they become available.

77

L-3

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Schedule of the District's Proportionate Share of the Net Pension Liability

Teachers' Pension and Annuity Fund

Last Eight Fiscal Years

2020 2019 2018 2017 2016 2015 2014 2013

District's proportion of the net pension

liability (asset) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

District's proportionate of the net pension

liability (asset) -$ -$ -$ -$ -$ -$ -$ -$

State's proportionate share of the net pension

liability (asset) associated with the District 333,278,609 307,385,652 317,534,753 336,336,183 386,076,269 253,846,482 259,337,251 244,617,946

Total 333,278,609$ 307,385,652$ 317,534,753$ 336,336,183$ 386,076,269$ 253,846,482$ 259,337,251$ 244,617,946$

District's covered payroll 59,911,964$ 58,575,783$ 54,138,997$ 52,830,893$ 51,825,604$ 50,023,842$ 49,227,235$ 49,131,489$

District's proportionate share of the net

pension liability (asset) as a percentage

of its covered-employee payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Plan fiduciary net position as a

percentage of the total pension

liability 24.60% 26.95% 26.49% 25.41% 22.33% 28.71% 33.64% 33.76%

Source: GASB 68 report on Public Employees' Retirement System; District records

Note: This schedule is required by GASB 68 to show information for a 10 year period.

However, information is only available for eight years.

Additional years will be presented as they become available.

78

M-1

2020 2019 2018 2017 2016

District's proportion of the net OPEB

liability (asset) 0.00% 0.00% 0.00% 0.00% 0.00%

District's proportionate of the net OPEB

liability (asset) -$ -$ -$ -$ -$

State's proportionate share of the net OPEB

liability (asset) associated with the District 367,951,049$ 219,723,797$ 241,842,377$ 281,709,974$ 303,957,290$

Total 367,951,049$ 219,723,797$ 241,842,377$ 281,709,974$ 303,957,290$

District's covered payroll 76,333,695 74,624,307 68,923,200 67,286,311 65,411,610

District's proportionate share of the net

OPEB liability (asset) as a percentage

of its covered-employee payroll 0.00% 0.00% 0.00% 0.00% 0.00%

Plan fiduciary net position as a

percentage of the total OPEB

liability 0.00% 0.00% 0.00% 0.00% 0.00%

State's proportionate share of OPEB

associated with the District:

Service Cost 10,007,808 10,270,686 11,553,517 13,930,911

Interest Cost 7,932,839 9,631,333 10,388,061 8,970,885

Differences between Expected & Actual 69,286,160 (38,751,771) (27,813,275) -

Changes in Assumptions 67,212,013 3,276,100 (27,752,623) (38,864,378)

Member Contributions 194,157 199,937 223,502 240,267

Benefit Payments (6,405,725) (6,744,865) (6,466,779) (6,525,001)

Change in Total Opeb Liability 148,227,252 (22,118,580) (39,867,597) (22,247,316)

State's proportionate share of the net OPEB

liability (asset) associated with the District -

Beginning Balance 219,723,797 241,842,377 281,709,974 303,957,290

Ending Balance 367,951,049$ 219,723,797$ 241,842,377$ 281,709,974$

State's proportionate share of the net OPEB

liability associated with the District -

as a percentage of its covered-employee

payroll 482.03% 294.44% 350.89% 418.67%

Source: GASB 75 report on State of New Jersey State Health Benefits Program; District records

Note: This schedule is required by GASB 75 to be show information for a 10 year period.

However, information is only currently available for five years.

Additional years will be presented as they become available.

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Schedule of the District's Proportionate Share of the Net OPEB Liability

Public Employee Retirement System and Teachers' Pension and Annuity Fund

Last Five Fiscal Years

79

SPECIAL REVENUE FUND

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

E-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT Pa

g

e 1

Special Revenue Fund

Combining Schedule of Program Revenue and Expenditures

Budgetary Basis

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Nonpublic Nonpublic

A

uxiliar

y

Aid Handicapped Aid Preschool Total I.D.E.A. I.D.E.A.

Nonpublic Compensator

y

Examination & Corrective Supplemental Nonpublic Nonpublic Education State Part - B Part - B

Textbooks Education Classification Speech Instruction Nursin

g

Securit

y

A

id Funds Basic Preschool

REVENUES:

State Sources 26,358$ 59,221 30,365 10,572 27,668 42,682 68,498 1,600,081 1,865,445

Federal Sources 1,894,255$ 40,697

Local Sources 846,134 846,134

Total revenues 26,358 59,221 30,365 10,572 27,668 42,682 68,498 2,446,215 2,711,579 1,894,255 40,697

EXPENDITURES:

Instruction:

Salaries of teachers 442,899 442,899 55,355 26,438

Other Salaries for Instruction 209,625 209,625 11,367

Purchased prof. and technical services 59,221 30,365 10,572 27,668 9,600 137,426

Other purchased services - 1,550,943

General supplies 288,515 288,515

Textbooks 26,358 26,358

Total instruction 26,358 59,221 30,365 10,572 27,668 - - 950,639 1,104,823 1,606,298 37,805

Support services:

Salaries of Supervisors of Instruction 15,000 15,000

Salaries of pro

g

ram directors 12,131 12,131

Salaries of Other Professional Staf

f

42,682 25,429 115,946 184,057 73,518

Salaries of Secretarial and Clerical Assistants 17,561 17,561

Other Salaries 24,312 24,312

Salaries of Masters Teachers 69,540 69,540

Personal services- emplo

y

ee benefits 1,945 296,585 298,530 9,859

Purchased Professional/Educational Services 2,850 626,965 629,815 2,892

Purchased technical services - 45,438

Miscellaneous purchased services - 159,142

Supplies and materials 38,274 8,904 47,178

Conduit Expenses -

Student Activities/Athletics -

Total support services - - - - - 42,682 68,498 1,186,944 1,298,124 287,957 2,892

Facilities acquisition and const. serv.:

Instructional equipment 296,383 296,383

Noninstructional equipment 12,249 12,249

Total facilities acquisition and construction services - - - - - - - 308,632 308,632 - -

Transfer to charter schools -

Total expenditures 26,358 59,221 30,365 10,572 27,668 42,682 68,498 2,446,215 2,711,579 1,894,255 40,697

Excess

(

Deficienc

y)

of Revenues Over

(

Under

)

Expenditures and Other Financin

g

Sources

(

Uses

)

- - - - - - - - - - -

Fund Balance, Jul

y

1 - - - - - - - - - - -

Restatement - - - - - - - - - - -

Fund Balance , Jul

y

1

(

Restated

)

- - - - - - - - - - -

Fund Balance, June 30 -$ - - - - - - - - - -

80

REVENUES:

State Sources

Federal Sources

Local Sources

Total revenues

EXPENDITURES:

Instruction:

Salaries of teachers

Other Salaries for Instruction

Purchased prof. and technical services

Other purchased services

General supplies

Textbooks

Total instruction

Support services:

Salaries of Supervisors of Instruction

Salaries of pro

g

ram directors

Salaries of Other Professional Staf

f

Salaries of Secretarial and Clerical Assistants

Other Salaries

Salaries of Masters Teachers

Personal services- emplo

y

ee benefits

Purchased Professional/Educational Services

Purchased technical services

Miscellaneous purchased services

Supplies and materials

Conduit Expenses

Student Activities/Athletics

Total support services

Facilities acquisition and const. serv.:

Instructional equipment

Noninstructional equipment

Total facilities acquisition and construction services

Transfer to charter schools

Total expenditures

Excess

(

Deficienc

y)

of Revenues Over

(

Under

)

Expenditures and Other Financin

g

Sources

(

Uses

)

Fund Balance, Jul

y

1

Restatement

Fund Balance , Jul

y

1

(

Restated

)

Fund Balance, June 30

E-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT Pa

g

e 2

Special Revenue Fund

Combining Schedule of Program Revenue and Expenditures

Budgetary Basis

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Title III

En

g

lish Carl D. I.D.E.A. 21st Centur

y

Brid

g

in

g

the Coronavirus Nonpublic

Title I Title II Lan

g

ua

g

e Title III Perkins Part - B CLC Di

g

ital Relie

f

COVID CARES

Part A Part A Enhancement Immi

g

rant Vocational Supplemental Pro

g

ram Divide Fund Technolo

gy

A

ct

1,378,878 208,432 51,594 7,479 52,602 1,845 335,797 663,258 596,083 18,689 1,137,323

919,702 20,000 6,130 157,477

25,834

10,087

976,787

81,766 9,386 1,000 5,610 1,648 27,112 663,258 596,083 18,689 42,142

1,001,468 - 29,386 7,130 15,697 1,648 210,423 663,258 596,083 18,689 1,018,929

127,928 3,720 80,679 41,625

4,944 9,815

369,473 9,786 9,329 349 285 15,015 3,184

25,332 1,476 27,250

2,930

31,942 150 378

2,993 13,444 134 197 2,052 73,585

377,410 208,432 22,208 349 5,631 197 125,374 - - - 118,394

31,274

- - - - 31,274 - - - - - -

-

1,378,878 208,432 51,594 7,479 52,602 1,845 335,797 663,258 596,083 18,689 1,137,323

- - - - - - - - - - -

81

REVENUES:

State Sources

Federal Sources

Local Sources

Total revenues

EXPENDITURES:

Instruction:

Salaries of teachers

Other Salaries for Instruction

Purchased prof. and technical services

Other purchased services

General supplies

Textbooks

Total instruction

Support services:

Salaries of Supervisors of Instruction

Salaries of pro

g

ram directors

Salaries of Other Professional Staf

f

Salaries of Secretarial and Clerical Assistants

Other Salaries

Salaries of Masters Teachers

Personal services- emplo

y

ee benefits

Purchased Professional/Educational Services

Purchased technical services

Miscellaneous purchased services

Supplies and materials

Conduit Expenses

Student Activities/Athletics

Total support services

Facilities acquisition and const. serv.:

Instructional equipment

Noninstructional equipment

Total facilities acquisition and construction services

Transfer to charter schools

Total expenditures

Excess

(

Deficienc

y)

of Revenues Over

(

Under

)

Expenditures and Other Financin

g

Sources

(

Uses

)

Fund Balance, Jul

y

1

Restatement

Fund Balance , Jul

y

1

(

Restated

)

Fund Balance, June 30

E-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT Pa

g

e 3

Special Revenue Fund

Combining Schedule of Program Revenue and Expenditures

Budgetary Basis

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

CRSSA Learnin

g

CTE Total Student Total

ESSER

A

cceleration Brid

g

e Federal

A

tlantiCare Sustainable Gro Tan

g

e

r

Conduit

A

ctivities/Athletics

A

ll Othe

r

II Grant Externship Funds Grant Schools More Good Kids Fund Fund Funds Totals

- 1,865,445

1,098,100 33,389 7,905 7,526,326 - 7,526,326

1,384 1,364 926 288 4,448 456,449 464,859 1,310,993

1,098,100 33,389 7,905 7,526,326 1,384 1,364 926 288 4,448 456,449 464,859 10,702,764

1,185,102 - 1,628,001

37,201 - 246,826

10,087 - 147,513

1,095,140 3,622,870 - 3,622,870

1,960 33,389 1,482,043 1,384 926 288 2,598 1,773,156

- - 26,358

1,097,100 33,389 - 6,337,303 1,384 - 926 288 - - 2,598 7,444,724

- - 15,000

- - 12,131

327,470 - 511,527

- - 17,561

7,905 22,664 - 46,976

- - 69,540

417,280 - 715,810

56,950 - 686,765

48,368 - 48,368

191,612 - 191,612

1,000 93,405 1,364 1,364 141,947

- 44,378 44,378 44,378

- 393,804 393,804 393,804

1,000 - 7,905 1,157,749 - 1,364 - - 44,378 393,804 439,546 2,895,419

31,274 - 327,657

- - 12,249

- - - 31,274 - - - - - - - 339,906

1,098,100 33,389 7,905 7,526,326 1,384 1,364 926 288 44,378 393,804 442,144 10,680,049

- - - - - - - -

(

39,930

)

62,645 22,715 22,715

- - - - - - - - - - - -

- - - - - - - - 95,578 399,067 494,645 494,645

- - - - - - - - 55,648 461,712 517,360 517,360

82

E-2

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Special Revenue Fund

Schedule of Preschool Education Aid

Budgetary Basis

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Budgeted Actual Variance

EXPENDITURES:

Instruction:

Salaries of Teaches $ 673,487.00 442,899.00 230,588.00

Other Salaries for Instruction 596,957.00 209,625.00 387,332.00

Purchased Professional and Educational Svc 36,000.00 9,600.00 26,400.00

Other Purchased Services (400-500 series) -

General Supplies 497,461.00 288,515.00 208,946.00

Other Objects -

Total Instruction 1,803,905.00 950,639.00 853,266.00

Support Services:

Salaries of Supervisors of Instruction 15,000.00 15,000.00 -

Salaries of Program Directors 45,000.00 12,131.00 32,869.00

Salaries of Other Professional Staff 140,000.00 115,946.00 24,054.00

Salaries of Secretarial and Clerical Assistants 20,000.00 17,561.00 2,439.00

Other Salaries 24,312.00 24,312.00 -

Salaries of Masters Teachers 70,000.00 69,540.00 460.00

Personal Services - Employee Benefits 500,000.00 296,585.00 203,415.00

Purchased Professional - Educational Services 737,983.00 626,965.00 111,018.00

Contracted Svc - Transportation -

Contracted Svc - Transportation - Field Trips -

Travel -

Supplies and Materials 11,800.00 8,904.00 2,896.00

Total Support Services 1,564,095.00 1,186,944.00 377,151.00

Facilities Acquisition and Construction Services

Instructional equipment 300,000.00 296,383.00 3,617.00

Noninstructional equipment 14,000.00 12,249.00 1,751.00

Total Facilities Acquisition and Construction Ser. 314,000.00 308,632.00 5,368.00

Contribution to Charter Schools

None -

Total Expenditures $ 3,682,000.00 2,446,215.00

1,235,785.00

Total 2020-21 Preschool Education Aid Allocation

$ 2,835,866.00

Add: Actual Carryover June 30, 2020 -

2,835,866.00

Add: Budgeted Transfer from the General Fund 846,134.00

Total Preschool Education Aid Funds Available for 2020/2021 Budget 3,682,000.00

Less: 2020/2021 Budgeted Preschool Education Aid - Prior Year Budget Carryover (3,682,000.00)

Available & Unbudgeted Preschool Education Aid Funds, June 30, 2021 -

Add: June 30, 2021 Unexpended Preschool Education Aid 1,235,785.00

2020-2021 Carryover - Preschool Education Aid $ 1,235,785.00

2020-21 Preschool Education Carryover Budgeted for

Preschool Programs 2021-2022 $ 1,000,000.00

CALCULATION OF BUDGET & CARRYOVER

83

CAPITAL PROJECTS FUND

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

F-1

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Capital Projects Fund

Summary Schedule of Project Expenditures

Year Ended June 30, 2021

Original Expenditures to Date Unexpended

Number Issue/Project Title Date Appropriations Prior Years Current Year Balance

SP#200324 Construction of elementary school 3/28/00 21,670,374$ 21,479,093 - 191,281

Total

s

21,670,37

4

$ 21,479,09

3

- 191,281

84

F-2

Revenues and other Financing Sources

State sources -

School Facilities Grant Program -$

NJ Department of Treasury Grant -

NJ Economic Development Authority -

Bond proceeds and transfers -

Township of Egg Harbor -

Transfer from capital reserve -

Transfer from capital outlay -

Total revenues -

Expenditures and other Financing Uses

Salaries -

Purchased professional and technical services -

Legal services -

Land and improvements -

Construction services -

Equipment purchases -

Total expenditures -

Excess (deficiency) of revenues over (under) expenditures -

Fund balance - beginning 191,281

Fund balance - ending 191,281$

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Capital Projects Fund

Sumary Schedule of Revenues, Expenditures, and Changes

For the Year Ended June 30, 2021

in Fund Balance - Budgetary Basis

85

F-2a

Revised

Prior Current Authorized

Periods Year Totals Costs

Revenues and other Financing Sources

State sources -

School Facilities Grant Program -

NJ Department of Treasury Grant -

NJ Economic Development Authority -

Bond proceeds and transfers 21,670,374$ 21,670,374 21,670,374

Township of Egg Harbor -

Transfer from capital reserve -

Transfer from capital outlay -

Total revenues 21,670,374 - 21,670,374 21,670,374

Expenditures and other Financing Uses

Salaries -

Purchased professional and technical services 74,592 74,592 74,592

Legal services 21,528 21,528 21,528

Contingency 57,505 57,505 57,505

Construction services 20,555,254 20,555,254 20,746,535

Furniture & equipment purchases 770,214 770,214 770,214

Total expenditures 21,479,093 - 21,479,093 21,670,374

Excess (deficiency) of revenues

over (under) expenditures 191,281$ - 191,281 -

Additional project information:

Project number SP-200324

Grant Date N/A

Bond Authorization Date 3/28/00

Bonds Authorized 21,800,000

Bonds Issued 21,800,000

Original Authorized Cost 21,800,000

Additional/Reduction in Authorized Cost (129,626)

Revised Authorized Cost 21,670,374

Percentage Increase over Original

Authorized Cost -0.59%

Percentage Completion 100.00%

Original target completion date 9/1/03

Revised target completion date 6/30/17

From Inception and for the Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Capital Projects Fund

Schedule of Project Revenues, Expenditures, Project Balance, and Project Status - Budgetary Basis

Construction of Dr. Joyanne D. Miller Elementary School

86

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

LONG-TERM DEBT

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

EGG HARBOR TOWNSHIP SCHOOL DISTRICT I-1

Long-Term Debt

Schedule of Serial Bonds

June 30, 2021

Date of Amount of Annual Maturities Interest Balance Refunded/ Balance

Issue Issue Issue Date Amount Rate July 1, 2020 Issued Retired June 30, 2021

General Obligation -

Refunding Bonds 10/1/04 50,735,000$ 7/15/21 3,995,000 5.500%

7/15/22 4,220,000 5.500%

7/15/23 4,460,000 5.500%

7/15/24 4,715,000 5.750%

7/15/25 4,985,000 5.750%

26,150,000$ 3,775,000 22,375,000

General Obligation -

Refunding Bonds 12/5/12 6,805,000 4/1/23 835,000 4.000%

4/1/24 855,000 3.500%

2,540,000 850,000 1,690,000

General Obligation - 1/6/16 14,365,000 4/1/22 910,000 5.000%

Refunding Bonds 4/1/23 60,000 2.000%

4/1/24 65,000 2.000%

4/1/25 995,000 5.000%

4/1/26 955,000 5.000%

4/1/27 2,300,000 4.000%

4/1/28 2,515,000 3.000%

4/1/29 3,205,000 3.000%

4/1/30 2,975,000 3.000%

14,035,000 55,000 13,980,000

General Obligation - 6/1/16 19,320,000 9/15/21 1,525,000 2.000%

Refunding Bonds 9/15/21 190,000 4.000%

9/15/22 1,790,000 5.000%

9/15/23 1,890,000 5.000%

9/15/24 1,970,000 2.000%

9/15/25 2,020,000 2.125%

9/15/26 2,090,000 4.000%

9/15/27 2,170,000 2.375%

9/15/28 2,230,000 2.500%

17,525,000 1,650,000 15,875,000

60,250,000$ - 6,330,000 53,920,000

87

EGG HARBOR TOWNSHIP SCHOOL DISTRICT I-2

Long-Term Debt

Schedule of Obligations under Capital Leases

June 30, 2021

Amount of Amount Amount

Date of Interest Original Outstanding Issued Retired Outstanding

Series Inception Rate Payable Issue June 30, 2020 Current Year Current Year June 30, 2021

TD Equipment Finance

54 passenger buses (10) 7/15/15 1.570% 910,000$ 146,458 146,458 -

TD Equipment Finance

54 passenger buses (12) 12/15/16 1.600% 1,217,258 654,825 139,523 515,302

TD Equipment Finance

Various buses, vehicles & equipment 10/13/17 1.700% 2,703,662 1,385,090 453,936 931,154

TD Equipment Finance

54 passenger buses (8) 5/31/18 2.950% 816,770 395,520 128,026 267,494

ITS Equipment 5/31/18 2.773% 726,475 243,254 243,254 -

Banc of America

Various buses & equipment 7/14/19 1.946% 1,918,179 1,483,179 360,146 1,123,033

U.S. Bancorp

Buses 12/15/19 2.167% 680,000 380,000 94,750 285,250

JP Morgan Chase Bank, NA

Various buses & equipment 6/15/20 1.260% 1,910,065 1,910,065 457,273 1,452,792

6,598,391$ - 2,023,366 4,575,025

88

Exhibit I-3

Variance

Original Budget Final Under/(Over)

Budget Transfers Budget Actual Final to Actual

REVENUES:

Local Sources:

Local Tax Levy 5,571,072$ - 5,571,072 5,571,072 -

Other Miscellaneous -

5,571,072 - 5,571,072 5,571,072 -

State Sources:

Debt Service Aid Type II 3,242,453 - 3,242,453 3,242,453 -

Total - State Sources 3,242,453 - 3,242,453 3,242,453 -

Total Revenues 8,813,525 - 8,813,525 8,813,525 -

EXPENDITURES:

Regular Debt Service:

Interest 2,483,526 - 2,483,526 2,483,525 1

Redemption of Principal 6,330,000 - 6,330,000 6,330,000 -

Total Regular Debt Service 8,813,526 - 8,813,526 8,813,525 1

Total expenditures 8,813,526 - 8,813,526 8,813,525 1

Excess (Deficiency) of Revenues Over (Under) Expenditures (1) - (1) - 1

Fund Balance, July 1 2 - 2 2 -

Fund Balance, June 30 1$ - 1 2 1

Recapitulation of Fund Balance:

Designated for Subsequent Year's Expenditures -

Restricted Fund Balance 2

2

For the Fiscal Year Ended June 30, 2021

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Budgetary Comparison Schedule

Debt Service Fund

89

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Statistical Section

Financial Trends (J-1 through J-5)

These schedules contain trend information to help the reader understand

how the School District's financial position has changed over time.

Revenue Capacity (J-6 through J-9)

These schedules contain information to help the reader understand and

assess the factors affecting the School District's ability to generate

its most significant local revenue source, the propery tax.

Debt Capacity (J-10 through J-13)

These schedules present information to help the reader assess the affordability

of the School District's current levels of outstanding debt and the School

District's ability to issue additional debt in the future.

Demographic and Economic Information (J-14 and J-15)

These schedules offer economic and demographic indicators to help the

reader understand the environment within which the School District's

financial activities take place and to provide information that facilitates

comparisons of financial information over time and among governments.

Operating Information (J-16 through J-20)

These schedules contain service and infrastructure data to help the reader

understand how the information in the School District's financial report

relates to the services the School District provides and the activities it performs.

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

J-1

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Governmental activities

Net investment in capital assets $ 107,596,509 106,080,616 104,590,050 104,910,948 98,617,866 94,537,783 90,630,148 94,073,351 91,851,310 94,979,615

Restricted 4,661,596 3,937,303 2,635,593 1,685,301 1,077,373 1,916,722 387,165 561,482 473,736 10,145,466

Unrestricted* 3,448,528 5,512,921 (23,453,834) (19,965,011) (23,503,022) (28,846,773) (28,488,720) (35,260,714) (34,183,563) (39,995,106)

Total governmental activities net position 115,706,633 115,530,840 83,771,809 86,631,238 76,192,217 67,607,732 62,528,593 59,374,119 58,141,483 65,129,975

Business-type activities

Net investment in capital assets 113,406 147,741 151,742 169,101 193,910 227,654 258,567 216,086 205,422 215,826

Unrestricted 1,628,015 1,338,792 1,301,455 1,244,294 1,225,389 1,142,623 997,010 788,206 440,132 740,181

Total business-type activities net position 1,741,421 1,486,533 1,453,197 1,413,395 1,419,299 1,370,277 1,255,577 1,004,292 645,554 956,007

District-wide

Net investment in capital assets 107,709,915 106,228,357 104,741,792 105,080,049 98,811,776 94,765,437 90,888,715 94,289,437 92,056,732 95,195,441

Restricted 4,661,596 3,937,303 2,635,593 1,685,301 1,077,373 1,916,722 387,165 561,482 473,736

10,145,466

Unrestricted 5,076,543 6,851,713 (22,152,379) (18,720,717) (22,277,633) (27,704,150) (27,491,710) (34,472,508) (33,743,431) (39,254,925)

Total district net position $ 117,448,054 117,017,373 85,225,006 88,044,633 77,611,516 68,978,009 63,784,170 60,378,411 58,787,037 66,085,982

Note:

As a result of implementing Governmental Accounting Standards Board (GASB) Statement No. 63 and 65, the District

has restated the June 30, 2012 Governmental Activities Unrestricted net position. The restatment resulted in an increase

of $68,083 to net position.

As a result of implementing Governmental Accounting Standards Board (GASB) Statement No. 68, the District

has restated the June 30, 2014 Governmental Activities Unrestricted net position. The restatment resulted in a decrease

of $32,364,797 to net position.

Source: CAFR Scehdule A-1

Unaudited

Last Ten Fiscal Years

Net Position by Component,

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

90

J-2

Page 1 of 3

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Expenses

Governmental activities

Instruction

Regular $ 48,007,801 50,851,116 50,450,298 54,824,412 62,992,932 70,490,116 72,213,619 65,807,348 67,402,875 78,712,650

Special education 10,277,868 11,368,892 11,493,725 12,629,713 15,301,873 17,501,382 18,030,639 17,135,710 17,807,976 21,697,536

Other special education 3,194,760 3,139,061 3,252,789 3,499,661 3,597,262 3,772,492 3,831,228 3,710,830 3,769,208 4,442,104

Other instruction 1,795,683 1,925,211 1,771,611 1,892,096 2,199,347 2,369,267 2,417,604 2,545,964 2,328,317 2,408,285

Nonpublic school programs 228,312 89,559 228,199 174,675 141,130 194,888 194,769 152,145 170,125 190,591

Support Services:

Tuition 5,595,481 6,355,186 6,214,391 7,960,177 8,518,177 4,862,379 4,918,423 4,350,963 5,041,378 1,822,358

Student & instruction related services 17,002,463 19,522,106 19,490,668 22,037,455 26,161,293 28,170,831 31,061,444 31,103,432 29,799,591 32,782,473

General administrative services 3,956,528 4,368,385 4,276,394 4,581,496 5,308,159 5,701,273 6,039,246 5,718,580 5,143,538 5,986,579

School administrative services 5,484,702 6,006,631 5,867,838 6,570,957 7,747,451 8,816,177 9,020,644 8,230,590

7,417,681 8,926,098

Plant operations and maintenance 13,904,927 13,998,124 13,966,789 14,758,183 16,965,477 18,712,027 19,893,048 19,964,864 18,960,802 22,093,127

Pupil transportation 9,806,929 10,075,822 10,273,699 11,138,585 12,675,554 14,027,054 14,841,206 14,798,076 13,712,720 13,350,650

Special Schools

Interest on long-term debt 4,679,467 4,333,013 4,742,049 4,565,316 4,359,240 3,966,799 3,685,474 3,370,398 3,114,493 2,779,251

Capital Outlay 2,000 - - - - - - -

Total governmental activities expenses 123,934,921 132,033,106 132,030,450 144,632,726 165,967,895 178,584,685 186,147,344 176,888,900 174,668,704 195,191,702

Business-type activities:

Food service 2,924,766 3,423,983 3,307,547 3,254,280 3,207,090 3,205,149 3,265,814 3,221,677 2,889,665 2,779,434

Child Care 319,206 342,188 329,321 347,520 350,893 378,739 319,273 283,288 189,658 164,455

Eagle Enterprises 2,326

Total business-type activities expense 3,243,972 3,766,171 3,636,868 3,601,800 3,557,983 3,583,888 3,585,087 3,504,965 3,079,323 2,946,215

Total district expenses 127,178,893 135,799,277 135,667,318 148,234,526 169,525,878 182,168,573 189,732,431 180,393,865 177,748,027 198,137,917

Program Revenue

s

Governmental activities:

Charges for services:

Special schools

Tuition 503,161 723,162 758,420 786,941 786,941 757,355 1,100,072 1,069,048 586,091 634,522

Operating grants and contributions 11,672,736 13,904,322 12,593,881 25,360,104 25,360,104 46,519,012 52,322,651 41,125,290 34,423,905 57,439,295

Total governmental activities program revenues 12,175,897 14,627,484 13,352,301 26,147,045 26,147,045 47,276,367 53,422,723 42,194,338 35,009,996 58,073,817

Unaudited

Changes in Net Position, Last Ten Fiscal Years

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

91

J-2

Page 2 of 3

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Business-type activities:

Charges for services

Food service 1,508,441 1,370,924 1,352,940 1,225,494 1,230,505 1,173,642 1,097,969 1,052,374 705,367 11,914

Child care 338,588 325,824 318,293 311,977 315,708 265,522 269,421 228,012 277,384 327,368

Operating grants and contributions 1,669,251 1,811,708 1,874,069 2,023,917 2,006,187 2,094,060 2,044,895 1,993,374 1,688,176 2,913,975

Total business type activities program revenues 3,516,280 3,508,456 3,545,302 3,561,388 3,552,400 3,533,224 3,412,285 3,273,760 2,670,927 3,253,257

Total district program revenues 15,692,177 18,135,940 16,897,603 29,708,433 29,699,445 50,809,591 56,835,008 45,468,098 37,680,923 61,327,074

Net (Expense)/Revenu

e

Governmental activities (111,759,024) (117,405,622) (118,678,149) (118,485,681) (139,820,850) (131,308,318) (132,724,621) (134,694,562) (139,658,708) (137,117,885)

Business-type activities 272,308 (257,715) (91,566) (40,412) (5,583) (50,664) (172,802) (231,205) (408,396) 307,042

Total district-wide net expense (111,486,716) (117,663,337) (118,769,715) (118,526,093) (139,826,433) (131,358,982) (132,897,423) (134,925,767) (140,067,104) (136,810,843)

General Revenues and Other Changes in Net Position

Governmental activities:

Property taxes levied for general purposes, net 64,566,957 67,204,500 69,175,095 71,015,418 72,986,000 74,445,720 75,615,712 77,128,026 79,449,051 81,038,032

Taxes levied for debt service 5,115,855 5,738,984 5,731,780 5,711,491 5,751,186 5,674,577 5,565,859 5,551,811 5,589,401 5,571,072

Unrestricted grants and contributions 39,589,730 40,238,195 40,929,772 40,923,098 40,948,861 41,803,805 42,802,324 45,062,043 49,285,702 51,909,524

Federal and state aid restricted 30,542,358 3,250,869 3,253,736 3,259,532 3,262,441 3,269,108 3,179,765 3,229,297 3,235,262 3,242,453

Transportation charges

Investment earnings 94,849 40,643 37,315 41,339 55,169 75,759 2,000 3,000 3,000 3,000

Miscellaneous income 573,821 926,211 1,340,948 397,613 979,474 924,923 568,294 914,441 1,491,844 601,660

Special items 433,797

(167,573) (1,186,731) (3,381) (1,651,769) (3,470,059) (88,472) (348,530) (628,188) (148,908)

Transfers

Total governmental activities 140,917,367 117,231,829 119,281,915 121,345,110 122,331,362 122,723,833 127,645,482 131,540,088 138,426,072 142,216,833

Business-type activities:

Investment earnings 5,542 2,827 2,265 1,912 1,753 1,642 2,050 5,179 9,658 3,411

Special items 55,965 (1,302) 9,734 - 56,052 (25,259) 40,000 -

Transfers - - - -

Total business-type activities 5,542 2,827 58,230 610 11,487 1,642 58,102 (20,080) 49,658 3,411

Total district-wide 140,922,909 117,234,656 119,340,145 121,345,720 122,342,849 122,725,475 127,703,584 131,520,008 138,475,730 142,220,244

Unaudited

Changes in Net Position, Last Ten Fiscal Years

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

92

J-2

Page 3 of 3

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Change in Net Position

Governmental activities 29,158,343 (173,793) 603,766 2,859,429 (17,489,488) (8,584,485) (5,079,139) (3,154,474) (1,232,636) 5,098,948

Business-type activities 277,850 (254,888) (33,336) (39,802) 5,904 (49,022) (114,700) (251,285) (358,738) 310,453

Total district $ 29,436,193 (428,681) 570,430 2,819,627 (17,483,584) (8,633,507) (5,193,839) (3,405,759) (1,591,374) 5,409,401

Source: CAFR Schedule A-2

Unaudited

Changes in Net Position, Last Ten Fiscal Years

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

93

J-3

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

General Fund

Restricted $ 5,918,996 9,035,850 15,672,131 16,822,512 16,019,118 13,156,094 13,754,862 10,022,868 12,426,083 9,954,183

Committed 5,388,432 3,379,001 - - - - - - - -

Assigned 471,036 152,937 - 347,890 735,069 1,869,581 800,070 756,454 282,453 4,316,277

Unassigned (195,438) - - - - - - 1,893,267

Total general fund 11,778,464 12,567,788 15,476,693 17,170,402 16,754,187 15,025,675 14,554,932 10,779,322 12,708,536 16,163,727

All Other Governmental Funds

Restricted 2,731,142 3,149,561 453,308 191,301 246,833 335,375 227,924 191,282 191,283 708,643

Committed 749,999 2,144,542 1,132,546 95,471 - - - - -

Assigned 729,708 - 37,743 13,564 - - - - - -

Unassigned 2 37,743 - - - - - - - (283,587)

Unreserved, reported in:

Special revenue fund

Capital projects fund

Debt service fund -

Total all other governmental funds $ 3,460,852 3,937,303 2,635,593 1,337,411 342,304 335,375

227,924 191,282 191,283 425,056

Source: CAFR Schedule B-1

Unaudited

Last Ten Fiscal Years

Fund Balances, Governmental Funds,

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

94

J-4

Page 1 of 2

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Revenues

Tax levy $ 69,682,812 72,943,484 74,906,875 76,726,909 78,737,186 80,120,297 81,181,571 82,679,837 85,038,452 86,609,104

Tuition charges 503,161 723,162 758,420 786,941 717,238 757,355 1,100,072 1,069,048 586,091 634,522

Transportation charges

Interest earnings 94,849 40,643 37,315 41,339 33,859 33,859 33,859

Rentals 55,169 75,759 2,000 3,000 3,000 3,000

Miscellaneous 573,821 926,211 1,340,948 397,613 731,845 1,104,834 534,435 914,441 1,491,844 601,660

Local sources 83,696 80,932 36,455 15,751 2,169 22,306 4,266 29,903 25,433 464,590

State sources 76,949,960 53,791,957 53,384,159 54,745,251 56,551,128 59,029,044 62,259,611 66,859,615 72,221,467 80,315,163

Federal sources 4,771,168 3,520,497 3,356,773 3,492,013 3,763,699 3,532,315 4,271,930 4,175,657 4,274,627 7,764,118

Total revenue 152,659,467 132,026,886 133,820,945 136,205,817 140,592,293 144,675,769 149,387,744 155,731,501 163,640,914 176,392,157

Expenditures

Instruction

Regular Instruction 34,587,035 35,102,304 35,205,925

35,101,944 36,989,169 38,060,970 38,511,889 39,390,980 41,469,477 47,120,871

Special education instruction 7,076,809 7,581,713 7,585,720 7,835,258 8,516,160 9,369,001 9,426,133 9,452,324 10,772,118 11,847,366

Other special instruction 2,197,648 2,032,077 2,075,277 2,057,868 1,939,201 1,941,032 1,934,150 2,018,450 2,232,876 2,279,718

Other instruction 1,355,886 1,417,191 1,313,499 1,316,270 1,423,881 1,409,775 1,458,668 1,613,925 1,565,079 1,425,936

Nonpublic school programs 228,312 89,559 228,199 174,675 141,130 194,888 194,769 152,145 170,125 190,591

Support Services:

Tuition 3,204,415 3,822,196 3,724,846 4,722,724 4,161,898 4,862,379 4,918,423 4,350,963 5,041,378 1,822,358

Student & instruction related services 11,809,563 13,168,955 13,233,770 13,793,357 14,789,363 14,511,556 16,166,263 17,402,076 18,042,592 17,986,939

General administrative services 2,618,284 2,808,404 2,839,377 2,778,659 2,894,089 2,817,613 2,958,324 3,082,141 2,998,297 3,056,029

School Administrative services 3,367,287 3,501,399 3,509,442 3,622,601 3,726,199 3,851,581 3,841,837 3,857,385 3,796,751 3,969,297

Plant operations and maintenance 9,136,762 8,802,111 9,266,653 8,783,610

9,348,054 9,516,462 9,778,417 10,790,616 10,979,147 11,450,637

Pupil transportation 6,558,242 6,524,541 6,838,838 6,550,746 6,894,685 6,931,748 7,208,272 8,011,872 7,767,492 6,781,582

Unallocated employee benefits 30,220,266 34,608,681 33,907,585 36,239,815 39,221,873 41,783,949 43,373,118 47,815,600 45,569,440 54,920,545

Special Schools

Capital outlay 30,696,942 2,353,522 3,719,997 4,291,997 5,647,612 3,532,222 5,589,507 2,787,526 6,990,509 2,927,343

Debt service:

Principal 3,410,000 4,429,226 4,620,000 4,815,000 5,030,000 5,400,000 5,525,000 5,755,000 6,040,000 6,330,000

Interest and other charges 4,817,207 4,522,886 4,365,516 4,193,766 3,956,659 3,445,292 3,328,075 3,062,750 2,784,662 2,483,525

Total expenditures 151,284,658 130,764,765 132,434,644 136,278,290 144,679,973 147,628,468 154,212,845 159,543,753 166,219,943 174,592,737

Excess (Deficiency) of revenues

over (under) expenditures 1,374,809 1,262,121 1,386,301 (72,473) (4,087,680) (2,952,699) (4,825,101) (3,812,252) (2,579,029) 1,799,420

Unaudited

Last Ten Fiscal Years

Changes in Fund Balances, Governmental Funds,

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

95

J-4

Page 2 of 2

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Other Financing sources (uses)

Capital leases (non-budgeted) - - 374,534 468,000 2,676,358 1,217,258 4,246,907 - 4,508,244 -

Debt service assessment

Cancellation of prior year receivables (153,640) - - - - - -

Cancellation of prior year payables 79,016 3,654

Proceeds of refunding debt 6,805,000

Payment to refunded debt escrow agent (6,805,000)

Recoveries for storm damage

Insurance 398,700

FEMA 74,883

Expenses related to storm damage

Insurance (398,700)

FEMA (74,883)

Transfers in 466,600 1,406,400

Transfers out (466,600) (1,406,400)

Total other financing sources (uses) 79,016 3,654 220,894 468,000 2,676,358 1,217,258 4,246,907 - 4,508,244 -

Net change in fund balances $ 1,453,825 1,265,775 1,607,195 395,527 (1,411,322) (1,735,441) (578,194) (3,812,252) 1,929,215 1,799,420

Debt service as a percentage of

noncapital expenditures 6.82% 6.97% 6.98% 6.83% 6.46% 6.14% 5.96% 5.63% 5.54% 5.13%

Source: CAFR Schedule B-2

Unaudited

Last Ten Fiscal Years

Changes in Fund Balances, Governmental Funds,

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

96

J-5

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

General Fund Other Local Revenue by Source

Last Ten Fiscal Years

Unaudited

Adult Evening Refund of

Fiscal Year School Prior Year Lawsuit Use of Sale of

Ended June 30, Tuition Expenditures Settlements Facilities SRECS Misc. Total

2012 2,032 17,455 44,143 475,378 34,813 573,821

2013 2,025 10,964 621,319 44,328 196,135 51,440 926,211

2014 2,790 1,046,090 88,597 172,175 17,732 1,327,384

2015 106,761 82,979 184,200 23,653 397,593

2016 26,631 564,170 196,594 787,395

2017 22,849 675,324 435,371 1,133,544

2018 7,113 386,297 119,643 513,053

2019 104,248 539,644 188,403 832,295

2020 123,518 644,782 696,173 1,464,473

2021 5,448 283,700 247,298 536,446

Source: District Records

97

J-6

TOWNSHIP OF EGG HARBOR SCHOOL DISTRIC

T

A

ssessed Value and Actual Value of Taxable Property

Last Ten Fiscal Years

Unaudite

d

Fiscal

Year

Ended

June 30, Vacant Land Residential Farm Reg.

Qfarm

Commercial Industrial

Apartment

Total Assessed

Value

Less: Tax-

Exempt Property

Class I

Railroad Public Utilities

a

Net Valuation Taxabl

e

Total Direct

School Tax Rate

b

Estimated Actual

(County Equalized

Value)

2012 108,161,300 1,980,745,900 3,730,300 439,800 430,765,500 28,633,700 8,210,400 2,560,686,900 15,300 6,465,890 2,567,168,090 2.52 4,739,095,606

* 2013 177,625,200 3,022,057,300 5,717,200 535,300 797,608,100 47,398,600 16,192,000 4,067,133,700 15,300 10,299,734 4,077,448,734 1.79 7,045,876,506

2014 166,478,000 3,046,695,000 5,084,900 554,100 798,150,900 43,509,200 16,192,000 4,076,664,100 15,300 8,175,829 4,084,855,229 1.83 4,188,735,879

2015 151,264,300 3,060,824,300 5,457,400 734,300 787,632,800 43,509,200 16,192,000 4,065,614,300 15,300 8,586,762 4,074,216,362 1.90 4,166,224,052

2016 141,631,800 3,079,654,400 5,116,300 819,700 793,693,100 43,509,200 16,192,000 4,080,616,500 15,300 8,434,662 4,089,066,462 1.93 4,189,172,382

2017 144,125,200 3,098,196,000 5,122,700 713,700 755,978,515 43,120,500 16,192,000 4,063,448,615 15,300 8,514,802 4,071,978,717 2.00 4,104,024,465

2018 128,740,600 3,090,670,100 5,577,800 784,400 777,298,250 40,806,400 15,841,500 4,059,719,050 - 8,661,779 4,068,380,829 2.02 4,050,620,528

2019 124,068,100 3,089,318,200 5,317,300 683,000 761,849,150 40,806,400 15,841,500 4,037,883,650 - 8,798,245 4,046,681,895 2.03 4,067,353,658

2020 121,930,400 3,088,852,500 5,530,500 685,900 762,644,550 40,806,400 15,841,500 4,036,291,750 - 8,234,896 4,044,526,646 2.12 4,344,809,120

2021 112,745,100 3,099,354,500 5,530,500 685,800 760,807,250 40,806,400 23,126,000 4,043,055,550 - 8,277,539 4,051,333,089 2.14 4,445,866,088

Source: District records Tax list summar

y

& Municipal Tax Assesso

Note:

* Reassessment occurs when ordered b

y

the Count

y

Board of Taxatio

n

a Taxable Value of Machiner

y

, Implements and Equipment of Telephone, Tele

g

raph and Messen

g

er S

y

stem Compani

e

b Tax rates are per $100

Real property is required to be assessed at some percentage of true value (fair or market value) established by each county board of taxation.

98

J-7

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Direct and Overlapping Property Tax Rates

Rate per $100 of Assessed Value

Last Ten Fiscal Years

Unaudited

Basic Rate

a

General

Obligation Deb

t

Service

b

Total

Direct

Egg

Harbor

Township

Atlantic

County

Total Direct and

Overlapping Tax

Rate

Fiscal

Year

Ended

June 30,

2012 2.609 0.224 2.833 0.755 0.664 4.252

2013 1.646 0.167 1.813 0.754 0.641 3.208

* 2014 1.71

7

0.141 1.85

8

0.51

9

0.481 2.85

8

2015 1.768 0.140 1.908 0.538 0.508 2.954

2016 1.783 0.141 1.924 0.550 0.505 2.979

2017 1.863 0.139 2.002 0.560 0.523 3.085

2018 1.878 0.138 2.016 0.570 0.559 3.145

2019 1.937 0.137 2.074 0.598 0.539 3.211

2020 1.985 0.138 2.124 0.608 0.569 3.301

2021 2.000 0.139 2.139 0.633 0.590 3.362

Source: District Records and Municipal Tax Collector

Note:

NJSA 18A:7F-5d limits the amount that the district can submit for a general fund tax levy . The levy when added to other

components of the district's net budget may not exceed the prebudget year net budget by more than the spending growth

limitation calculation.

* A revaluation of properties was performed in order to bring the property values in line with their true value. This

revaluation was effective for the 2013 tax year.

a The district's basic tax rate is calculated from the A4F form which is submitted with the budget and the Net valuation taxable.

b Rates for debt service are based on each year's requirements.

Egg Harbor Township Board of Education

99

J-8

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Principal Property Tax Payers,

Current Year and Nine Years Ago

Unaudited

Taxable % of Total Taxable % of Total

Assessed Rank District Net Assessed Rank District Net

Taxpayer Value [Optional] Assessed Value Value [Optional] Assessed Value

Atlanticare Health Services, Inc. 34,911,500 1 0.86% 10,405,000 4 0.41%

US Realty Financial Corp 28,834,400 2 0.71%

English Creek LLC 16,857,800 3 0.42% 10,252,600 5 0.40%

AHIP NJ 15,311,000 4 0.38%

Lowe's Home Centers, Inc. 14,700,000 5 0.36% 9,010,200 6 0.35%

Home Depot Development Co of MD 10,500,000 6 0.26% 6,265,200 10 0.24%

PAMCNJ Real Estate, LP 9,981,600 7 0.25%

Margate Bridge Company 9,721,800 8 0.24%

Egg Harbor Associates, LLC 9,613,100 9 0.24%

Spencer Gifts, Inc. 9,415,000 10 0.23%

Shore Mall Associates 30,000,000 1 1.17%

Atlantic City Electric Co. 14,060,400 2 0.55%

Trocki Hotels LP 10,714,300 3 0.42%

Hidden Creek Golf Club, LLC 8,742,400 7 0.34%

Bellevue Prop Group (6550 Delilah Rd.) 6,557,900 8 0.26%

Cardiff Center, LLC 6,500,000 9 0.25%

Total 159,846,200 3.95% 112,508,000

4.38%

District Net Assessed Value 4,051,333,089 2,567,168,090

Source: District CAFR & Municipal Tax Assessor

District Total Taxable Value

2021 201

2

100

J-9

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Property Tax Levies and Collections,

Last Ten Fiscal Years

Unaudited

Amount

Percentage of

Levy

2012 69,682,812 69,682,812 100% -

2013 72,943,484 72,943,484 100% -

2014 74,906,875 74,906,875 100% -

2015 76,726,909 76,726,909 100% -

2016 78,737,186 78,737,186 100% -

2017 80,120,297 80,120,297 100% -

2018 81,181,571 81,181,571 100% -

2019 82,679,837 82,679,837 100% -

2020 85,038,452 85,038,452 100% -

2021 86,609,104 86,609,104 100% -

Source: District records including the Certificate and Report of School Taxes (A4F form)

Note: School taxes are collected by the Municipal Tax Collector. Under New Jersey State Statute,

a municipality is required to remit to the school district the entire property tax balance, in the

amount voted upon or certified prior to the end of the school year.

Fiscal

Year

Ended

June 30,

Taxes Levied for

the Fiscal Year

Collected within the Fiscal Year of

the Levy

Collections in

Subsequent

Years

101

J-10

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Ratios of Outstanding Debt by Type

Last Ten Fiscal Years

Unaudited

Business-Type

Activities

Fiscal

Year

Ended

June 30,

General

Obligation

Bonds

Capital

Leases Capital Leases Total District

Percentage of

Personal

Income

a

Per Capita

a

2012 101,804,000 1,530,055 55,965 103,390,020 5.63% 2,370

2013 97,495,000 964,674 55,965 98,515,639 5.33% 2,246

2014 92,875,000 856,512 - 93,731,512 5.07% 2,136

2015 88,060,000 826,842 - 88,886,842 4.78% 2,027

2016 82,970,000 2,646,482 - 85,616,482 4.50% 1,951

2017 77,570,000 3,081,473 27,680 80,679,153 4.24% 1,839

2018 72,045,000 5,925,167 40,802 78,010,969 4.50% 1,951

2019 66,290,000 4,401,751 - 70,691,751 3.57% 1,660

2020 60,250,000 6,598,391 - 66,848,391 3.25% 1,582

2021 53,920,000 4,575,025 - 58,495,025 2.74% 1,389

Source: District CAFR Schedules I-1, I-2

Note: Details regarding the district's outstanding debt can be found in the notes to the financial statements.

a See Exhibit NJ J-14 for personal income and population data. These ratios are calculated using personal income and

population for the prior calendar year.

Governmental Activities

102

J-11

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Ratios of Net General Bonded Debt Outstanding

Last Ten Fiscal Years

Unaudited

Fiscal

Year

Ended

June 30,

General

Obligation

Bonds Deductions

Net General

Bonded Debt

Outstanding

Percentage of

Actual Taxable

Value

a

of

Property

Per Capita

b

2012 101,804,000 101,804,000 3.97% 2,333

2013 97,495,000 97,495,000 2.39% 2,222

2014 92,875,000 92,875,000 2.27% 2,117

2015 88,060,000 88,060,000 2.16% 2,008

2016 82,970,000 82,970,000 2.03% 1,891

2017 77,570,000 77,570,000 1.90% 1,783

2018 72,045,000 72,045,000 1.77% 1,656

2019 66,290,000 66,290,000 1.64% 1,531

2020 60,250,000 60,250,000 1.49% 1,426

2021 53,920,000 53,920,000 1.33% 1,281

Note: Details regarding the district's outstanding debt can be found in the notes to the financial statements.

a See Exhibit NJ J-6 for property tax data.

b Population data can be found in Exhibit NJ J-13.

General Bonded Debt Outstanding

103

J-12

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Ratios of Overlapping Governmental Activities Debt

As of June 30, 2021

Unaudited

Governmental Unit

Debt

Outstanding

Estimated

Percentage

Applicable

a

Estimated

Share of

Overlapping

Debt

Debt repaid with property taxes

Township of Egg Harbor $ 28,144,550 100.00% 28,144,550

Other debt

Egg Harbor Township Golf Corporation 5,565,000 100.00% 5,565,000

Atlantic County 176,676,327 13.65% 24,110,580

Subtotal, overlapping debt 57,820,130

Township of Egg Harbor School District debt 53,920,000 100.00% 53,920,000

Total direct and overlapping debt $ 111,740,130

Sources: Township of Egg Harbor Finance Officer and Atlantic County Finance Office

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District.

This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and

businesses of Egg Harbor Township. This process recognizes that, when considering the District's ability to issue and repay long-term debt,

the entire debt burden borne by the residents and businesses should be taken into account. However this does not imply that

every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping payment.

a For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.

Applicable percentages were estimated by determining the portion of another governmental unit's taxable value that is within the

district's boundaries and dividing it by each unit's total taxable value.

104

J-13

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Legal Debt Margin Information,

Last Ten Fiscal Years

Unaudite

d

Legal Debt Margin Calculation for Fiscal Year 2020

Equalized valuation basis

2020

2019 4,325,068,177

2018 4,071,526,477

8,396,594,654

A

verage equalized valuation of taxable property 2,798,864,885

111,954,595

Net bonded school debt 53,920,000

Legal debt margin 58,034,595

2012 2013 2014 2015 2016 2017 2018 2019 2020

2021

Debt limit $ 189,401,983 178,813,680 173,469,679 169,614,370 168,846,486 165,525,868 164,023,701 162,775,023 165,826,838 111,954,595

Total net debt applicable to limit 101,804,000 97,495,000 92,875,000 88,060,000 82,970,000 77,570,000 64,755,000 66,290,000 60,250,000 53,920,000

Legal debt margin $ 87,597,983 81,318,680 80,594,679 81,554,370 85,876,486 87,955,868 99,268,701 96,485,023 105,576,838 58,034,595

Total net debt applicable to the limit

as a percentage of debt limit 53.75% 54.52% 53.54% 51.92% 49.14% 46.86% 39.48% 40.72% 36.33% 48.16%

Source:

A

bstract of Ratables and District Records CAFR Schedule J-11

Debt limit (4% of average)

105

J-14

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Demographic and Economic Statistics

Last Ten Fiscal Years

Unaudited

Year

Population

a

Personal

Income

(thousands of

dollars)

b

Per Capita

Personal

Income

c

Unemployment

Rate

d

2012 43,628 1,836,695 42,099 11.60%

2013 43,872 1,846,967 42,099 12.20%

2014 43,872 1,846,967 42,099 10.80%

2015 43,851 1,860,37

9

42,425 9.70%

2016 43,882 1,901,670 43,336 8.70%

2017 43,504 1,900,907 43,695 6.70%

2018 43,296 1,916,021 44,254 6.40%

2019 42,578 1,982,304 46,557 5.30%

2020 42,249 2,056,174 48,668 4.50%

2021 42,105 2,131,81

8

50,631 17.80%

Source:

a Population information provided by the NJ Dept of Labor and Workforce Development

b Personal income is calculated by multiplying per capita income by the population

c Per Capita Income US Department of Commerce, Bureau of Economic Analysis, November 17, 2016

d Unemployment data provided by the NJ Dept of Labor and Workforce Development

106

J-15

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Principal Employers

,

Prior Year and Ten Years Ag

o

Unaudite

d

Employer Employees

Rank

(Optional)

Percentage of

Total

Employment

Employees

Rank (Optional)

Percentage of

Total

Employment

Federal Aviation Administration 3,500 1 16% 3,500 1 16%

Egg Harbor Township School District 1,168 2 5% 1,168 2 5%

AtlantiCare 546 3 2% 546 3 2%

Air National Guard 400 4 2% 400 4 2%

Boscov's 275 5 1% 275 5 1%

U.S. Coast Guard 255 6 1% 255 6 1%

Home Depot 248 7 1% 248 7 1%

Egg Harbor Township 246 8 1% 246 8 1%

Spencer Gifts 210 9 1% 210 9 1%

Lowe's 208 10 1% 208 10 1%

7,056 32% 7,056 32%

GASB requires this table present the principal taxpayers for the current year and nine years ago, however information from 2021 was not available.

Also, the Township does not update this information on an annual basis, therefore the most recent information is reported.

Source: Township of Egg Harbor Official Statements

2017 2008

107

J-16

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Function/Program

Instruction

Regular 450.0 454.0 474.0 461.5 466.0 467.5 445.0 436.0 440.0 444.0

Special education 118.5 131.5 160.0 162.0 169.5 176.0 174.0 165.0 171.0 172.0

Vocational 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0

Other instruction 51.5 51.5 - - - - - - -

Support Services:

Student & instruction related services 169.0 176.0 227.0 246.0 264.0 283.5 305.0 329.9 363.1 359.0

General administrative services 8.0 8.5 8.5 8.0 9.0 8.5 10.0 9.0 9.0 8.0

School administrative services 50.0 50.5 51.0 52.5 51.5 52.5 49.0 49.9 48.0 50.0

Central services 9.0 9.0 8.0 10.0 10.0 10.0 10.0 10.0 10.0 11.0

Administrative information technology 6.0 6.0 5.0 4.0 5.0 5.0 5.0 6.0 6.0 5.0

Plant operations and maintenance 117.5 122.5

117.5 119.0 127.0 125.0 118.0 125.5 121.5 125.0

Pupil transportation 123.0 120.5 116.5 115.5 111.0 109.5 110.0 106.0 110.5 107.5

Food Service 30.5 30.5 42.0 42.0 42.0 42.0 41.0 41.5 38.5 33.5

Total 1,139.0 1,166.5 1,215.5 1,226.5 1,261.0 1,285.5 1,273.0 1,284.8 1,323.6 1,321.0

1:1 paraprofessionals charged to Support Services: Student & instruction related services were not

included as full-time equivalents prior to the 2014 fiscal year.

Source:

District Personnel Records

Unaudited

Last Ten Fiscal Years

Full-time Equivalent District Employees by Function/Program,

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

108

J-17

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Operating Statistics

Last Ten Fiscal Years

Unaudite

d

Fiscal

Year Enrollment

Operating

Expenditures

a

Cost Per

Pupil

Percentage

Change

Teaching Staff

b

Elementary Middle School High School

Average

Daily

Enrollment

(ADE)

c

Average Daily

Attendance

(ADA)

c

% Change in

Average Daily

Enrollment

Student

Attendance

Percentage

2012 7,866

112,360,509 14,284

6.10% 676 11.9:1 9.65:1 11.2:1 7,732 7,373

-2.41%

95.36%

2013 7,859 119,459,131

15,200

6.41% 691 10.6:1 10.0:1 10.0:1 7,685 7,324

-0.61%

95.30%

2014 7,715 119,729,131

15,519

2.10% 661 11.5:1 11.0:1 10.0:1 7,508 7,174

-2.30%

95.55%

2015 7,639 122,977,527

16,099

3.74% 711 11.5:1 11.0:1 10.0:1 7,489 7,130

-0.25%

95.21%

2016 7,429 130,045,702

17,505

8.74% 695 11.5:1 11.0:1 10.0:1 7,349 6,990

-1.87%

95.11%

2017 7,470 135,250,954

18,106

3.43% 650 11.6:1 11.2:1 10.3:1 7,395 7,026

0.63%

95.01%

2018 7,344 153,841,064

20,948

15.70% 650 11.6:1 11.7:1 11.7:1 7,383 7,014

-0.16%

95.00%

2019 7,279 147,938,477

20,324

-2.98% 607 12.2:1 11.7:1 11.9:1 7,326 6,946

-0.77%

94.81%

2020 7,113 150,404,772

21,145

4.04% 617 11.2:1 12.0:1 11.6:1 7,289 7,019

-0.51%

96.30%

2021 7,155 162,851,869

22,761

7.64% 622 11.4:1 11.4:1 11.7:1 7,189 6,819

-1.37%

94.85%

Sources: District records, ASSA and Schedules J-12, J-14

Note: Enrollment based on annual October district count.

a Operating expenditures equal total expenditures less debt service and capital outlay; Schedule J-1

b Teaching staff includes only full-time equivalents of certificated staff.

c Average daily enrollment and average daily attendance are obtained from the School Register Summary (SRS).

Pupil/Teacher Ratio

109

J-18

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

District Building

Elementary

H. Russell Swift School (1956, 1967, 1970, 2003)

Square Feet 83,229 83,229 83,229 83,229 83,229 83,229 83,229 83,229 83,229 83,229

Capacity (students) 525 525 525 525 525 525 525 525 525 525

Enrollment 461 448 485 470 438 432 436 410 410 482

E. H. Slaybaugh School (1970, 1989)

Square Feet 77,430 77,430 77,430 77,430 77,430 77,730 77,730 77,730 77,730 77,730

Capacity (students) 586 586 586 586 586 586 586 586 586 586

Enrollment 438 476 457 413 400 389 405 418 418 583

E. H. Slaybaugh Primary School (2007)

Square Feet 58,807 58,807 58,807 58,807 58,807 58,807 58,807 58,807 58,807 58,807

Capacity (students) 500 500 500 500 500 500 500 500 500 500

Enrollment 448 428 402 396 452 466 439 445 445 249

C. J. Davenport School (1976)

Square Feet

89,718 89,718 89,718 89,718 89,718 89,718 89,718 89,718 89,718 89,718

Capacity (students) 657 657 657 657 657 657 657 657 657 657

Enrollment 428 473 479 506 401 391 375 377 377 418

C. J. Davenport Primary School (2007)

Square Feet 57,646 57,646 57,646 57,646 57,646 57,646 57,646 57,646 57,646 57,646

Capacity (students) 500 500 500 500 500 500 500 500 500 500

Enrollment 478 417 402 378 390 387 374 383 383 325

Dr. Joy Miller Elementary School (2003)

Square Feet 154,538 154,538 154,538 154,538 154,538 154,538 154,538 154,538 154,538 154,538

Capacity (students) 1,194 1,194 1,194 1,194 1,194 1,194 1,194 1,194 1,194 1,194

Enrollment 1,206 1,176 1,140 1,175 1,150 1,140 1,110 1,099 1,099 1,033

Middle School

Fernwood Avenue (1992)

Square Feet 203,439 203,439 203,439 203,439 203,439 203,439 203,439 203,439 203,439 203,439

Capacity (students) 1,321 1,321 1,321 1,321 1,321 1,321 1,321 1,321 1,321 1,321

Enrollment 986 997 950 934 920 959 970 911 911 883

Alder Avenue (1992, 2007)

Square Feet 169,174 169,174 169,174 169,174 169,174 169,174 169,174 169,174 169,174 169,174

Capacity (students) 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389

Enrollment 827 883 911 933 891 866 877 851 851 834

Unaudited

Last Ten Fiscal Years

School Building Information

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

110

J-18

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Unaudited

Last Ten Fiscal Years

School Building Information

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

High Schoo

l

EHT High School (1983, 2003,, 2012)

Square Fee

t

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

444,71

5

Capacity (students

)

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

2,80

0

Enrollmen

t

2,45

8

2,44

6

2,39

9

2,32

3

2,27

9

2,31

9

2,30

9

2,34

6

2,34

6

2,30

8

Eagle Academy

Square Feet 6,924 6,924 6,924 6,924 6,924 6,924 6,924 6,924 6,924 6,924

Capacity (students) 60 60 60 60 60 60 60 60 60 60

Enrollmen

t

53 39 22 37 39 37 49 39 39 40

Other

Central Administration Building (1969)

(sold in 2016)

Square Feet 9,744 9,744 9,744 9,744 - - - - - -

District Warehouse (1976)

(sold in 2016)

Square Feet 1,400 1,400 1,400 1,400 - - - - - -

Transportation (1980)

Square Feet 8,495 8,495 8,495 8,495 8,495 8,495 8,495 8,495 8,495 8,495

Maintenance Building (1980)

Square Feet 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160

Grounds Building (1980)

Square Feet 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360

High School Field House (1995, 2014)

Square Feet 5,200 5,200 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400

Number of Schools at June 30, 2021

Elementary = 6

Middle School = 2

High School = 2

Source: District records, ASSA

Note: Year of original construction, or major renovation, is shown in parentheses. Increases in square footage and capacity are the result of

additions. Enrollment is based on the annual October district count.

111

J-19

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

General Fund

Schedule of Required Maintenance for School Facilities

Last Ten Years

Unaudited

School Facilities Project # (s) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

H. Russell Swift Elementary School N/A 281,729$ 109,153$ 64,555$ 58,768$ 76,933$ 55,707$ 79,675$ 91,498$ 69,403 54,377

E.H. Slaybaugh Elementary School N/A 255,989 239,019 145,445 157,319 122,615 104,529 103,901 114,872 116,636 117,528

Clayton J. Davenport Elementary School N/A 254,016 191,699 134,376 116,088 138,505 90,456 101,354 113,232 132,929 128,963

Joy D. Miller Elementary School N/A 140,899 136,206 126,391 169,159 121,094 119,977 107,967 118,068 117,911 154,280

Fernwood Avenue Middle School N/A 213,663 163,314 164,168 166,181 158,515 251,170 132,567 125,207 168,401 156,685

Alder Avenue Middle School N/A 185,705 165,024 130,041 166,110 125,151 199,289 107,601 119,539 116,781 134,686

Eagle Academy N/A 22,698 7,498 55,034 7,267 8,683 7,778

Egg Harbor Township High School N/A 569,112 441,207 613,447 440,310 438,310 323,047 287,826 413,320 274,289 393,555

Total School Facilities 1,923,811 1,453,120 1,433,457 1,281,202 1,189,806 1,151,953 920,891 1,095,736 996,350 1,140,074

Other Facilities

8,196 8,255 34,673 56,213 59,626 17,351 17,691 7,175 12,509 11,452

Grand Total 1,932,007$ 1,461,375$ 1,468,130$ 1,337,415$ 1,249,432 1,169,304 938,582 1,102,911 1,008,859 1,151,526

UNDISTRIBUTED EXPENDITURES - REQUIRED MAINTENANCE FOR SCHOOL FACILITIES

11-000-261-XXX

112

J-20

Page 1 of 2

Coverage Deductible

Property, Inland Marine and Automobile Physical Damages

A. Limit of Liability 125,000,000

ACCASBOJIF Self Insured Retention, per occurrence 250,000

Members District Deductible, per occurrence 500

Perils Included "All Risk"

B. Property Valuation

Buildings and Contents Replacement Cost

Contractors Equipment Actual Cash Value

Automobiles Replacement Cost

Boiler and Machinery

A. Limit of Liability 125,000,000

ACCASBOJIF Self Insured Retention None

Members District Deductible 1,000

Crime

A. Limit of Liability 500,000

ACCASBOJIF Self Insured Retention 250,000

Members District Deductible 500

General and Automobile Liabilit

y

A. Limit of Liability 20,000,000

ACCASBOJIF Self Insured Retention 250,000

Members District Deductible None

Workers' Compensation

A. Limit of Liability Statutory

ACCASBOJIF Self Insured Retention 250,000

Members District Deductible None

Educator's Legal Liabilit

y

A. Limit of Liability 20,000,000

ACCASBOJIF Self Insured Retention 175,000

Members District Deductible None

TOWNSHIP OF EGG HARBOR SCHOOL DISTRICT

Insurance Schedule

June 30, 2021

Unaudited

113

J-20

Page 2 of 2

Coverage Deductible

Pollution Legal Liability/Mold Legal Liabilit

y

A. Limit of Liability

Pollution 3,000,000

ACCASBOJIF Self Insured Retention None

Members District Deductible

Pollution 25,000

Mold 100,000

Cyber Liability

A. Limit of Liability 1,000,000

ACCASBOJIF Self Insured Retention None

Members District Deductible 25,000

V

iolent Malicious Acts

Limit of Liability, each occurrence 1,000,000

ACCASBOJIF Self Insured Retention None

Members District Deductible 15,000

Disaster Management Services

A. Limit of Liability 2,000,000

ACCASBOJIF Self Insured Retention None

Members District Deductible 15,000

Student Activity Polic

y

All Students and Athletes 6,000,000 None

Student Disability 1,500,000 None

Athletic Disability 1,500,000 None

Source: District Records (Coverage is through the Atlantic & Cape May Counties

Association of School Business Officials Joint Insurance Fund (ACCASBOJIF).

June 30, 2021

Unaudited

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Insurance Schedule

114

{THIS PAGE IS INTENTIONALLY LEFT BLANK}

Single Audit Section



K-1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable President and

Members of the Board of Education

Egg Harbor Township School District

County of Atlantic

Egg Harbor Township, New Jersey

We have audited, in accordance with the auditing standards generally accepted in the United States of

America, the standards applicable to financial audits contained in Government Auditing Standards issued

by the Comptroller General of the United States, and audit requirements as prescribed by the Office of

School Finance, Department of Education, State of New Jersey, the financial statements

of the

governmental activities, the business-type activities, each major fund, and the aggregate remaining fund

information of the Egg Harbor Township School District, as of and for the year ended June 30, 2021, and

the related notes to the financial statements, which collectively comprise the Egg Harbor Township

School District’s basic financial statements, and have issued our report thereon dated February 21, 2022.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Egg Harbor Township

School District’s 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 Egg Harbor

Township School District’s internal control. Accordingly, we do not express an opinion on the

effectiveness of District’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.

115



Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Egg Harbor Township School District’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 Office of School Finance, Department of Education, 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 in considering the entity’s internal control and compliance. Accordingly,

this communication is not suitable for any other purpose.

Very truly yours,

Ford, Scott & Associates, L.L.C.

FORD, SCOTT & ASSOCIATES, L.L.C.

CERTIFIED PUBLIC ACCOUNTANTS

Leon P. Costello

Certified Public Accountant

Licensed Public School Accountant

No. 767

February 21, 2022



116



K-2 REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE IN ACCORDANCE WITH OMB UNIFORM GUIDANCE

AND NEW JERSEY OMB CIRCULAR LETTER 15-08

Honorable President and

Members of the Board of Education

Egg Harbor Township School District

County of Atlantic, New Jersey

Report on Compliance for Each Major Federal & State Program

We have audited the Egg Harbor Township School District’s compliance with the types of compliance

requirements described in the Uniform Guidance and NJ OMB 15-08 that could have a direct and material

effect on each of the Egg Harbor Township School District’s major federal and state programs for the year

ended June 30, 2021. The Egg Harbor Township School District’s major federal and state programs are

identified in the summary of auditor’s results section of the accompanying schedule of findings and

questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants

applicable to its federal and state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the Egg Harbor Township School

District’s major federal and state programs based on our audit of the types of compliance requirements

referred to above. We conducted our audit of compliance 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; OMB Uniform

Guidance, New Jersey Circular 15-08 Single Audit Policy for Recipients of Federal Grants, State Grants

and State Aid, and the audit requirements as prescribed by the Office of School Finance, Department of

Education, State of New Jersey. Those standards and Circulars require that we plan and perform the audit

to obtain reasonable assurance about whether noncompliance with the types of compliance requirements

referred to above that could have a direct and material effect on a major federal or state program occurred.

An audit includes examining, on a test basis, evidence about the Egg Harbor Township School District’s

compliance with those requirements and performing such other procedures as we considered necessary in

the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal

and state program. However, our audit does not provide a legal determination of the Egg Harbor Township

School District’s compliance.

117



Opinion on Each Major Federal and State Program

In our opinion, the Egg Harbor Township School District complied, in all material respects, with the types

of compliance requirements referred to above that could have a direct and material effect on each of its

federal and major state programs for the year ended June 30, 2021.

Report on Internal Control Over Compliance

Management of the Egg Harbor Township School District is responsible for establishing and maintaining

effective internal control over compliance with the types of compliance requirements referred to above. In

planning and performing our audit of compliance, we considered the Egg Harbor Township School District’s

internal control over compliance with the types of requirements that could have a direct and material effect

on each major federal and state program to determine the auditing procedures that are appropriate in the

circumstances for the purpose of expressing an opinion on compliance for each major federal and state

program and to test and report on internal control over compliance in accordance with Uniform Guidance

and NJ OMB Circular 15-08, but not for the purpose of expressing an opinion on the effectiveness of internal

control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Egg Harbor

Township School District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over

compliance does not allow management or employees, in the normal course of performing their assigned

functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state

program on a timely basis. A material weakness in internal control over compliance is a deficiency, or

combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility

that material noncompliance with a type of compliance requirement of a federal or state program will not be

prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over

compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type

of compliance requirement of a federal or state program that is less severe than a material weakness in

internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first

paragraph of this section and was not designed to identify all deficiencies in internal control over compliance

that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal

control over compliance that we consider to be material weaknesses. However, material weaknesses may

exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing

of internal control over compliance and the results of that testing based on the requirements of Uniform

Guidance and NJ OMB Circular 15-08. Accordingly, this report is not suitable for any other purpose.

Very truly yours,

Ford, Scott & Associates, L.L.C.

FORD, SCOTT & ASSOCIATES, L.L.C.

CERTIFIED PUBLIC ACCOUNTANTS

Leon P. Costello

Certified Public Accountant

Licensed Public School Accountant

No. 767

February 21, 2022



118

EGG HARBOR TOWNSHIP SCHOOL DISTRICT K-3

Schedule of Expenditures of Federal Awards Schedule A

For the Fiscal Year Ended June 30, 2021

Budgetary Expenditures Balance at June 30, 2021

Federal Federal Program or Balance (MEMO) Repayment

Federal Grantor/Pass-Through Grantor/ CFDA FAIN Grant or State Award Grant at Carryover Cash Source Pass Through of Prior Years' (Accounts Deferred Due to

Program Title Number Number Project Number Amount Period June 30, 2020 Amount Received Pass Through Direct Total to Sub-Recipients Adjustments Balances Receivable) Revenue Grantor

U. S. Department of Agriculture

Passed-through State Department of Education:

Enterprise Fund:

Food Distribution Program

10.555 201NJ304N1099 N/A 312,843 7/1/19 - 6/30/20 92,868 (92,868) (92,868) -

Food Distribution Program

10.555 211NJ304N1099 N/A 288,797 7/1/20 - 6/30/21 288,797 (211,949) (211,949) 76,848

National School Breakfast Program 10.553 201NJ304N1099 N/A 261,587 7/1/19 - 6/30/20 (66,086) 26,644 - 39,442 -

National School Breakfast Program 10.553 211NJ304N1099 N/A 784,161 7/1/20 - 6/30/21 740,376 (784,161) (784,161) (43,785)

National School Lunch Program 10.555 201NJ304N1099 N/A 1,119,819 7/1/19 - 6/30/20 (105,137) 42,389 - 62,748 -

National School Lunch Program 10.555 211NJ304N1099 N/A 1,596,269 7/1/20 - 6/30/21 1,473,584 (1,596,269) (1,596,269) (122,685)

P-EBT Administrative Cost Reimbursement 10.629 202121S900941 N/A 3,063 7/1/20 - 6/30/21 (3,063) (3,063) (3,063)

Emergency Operational Costs Reimbursement Program

10.555 202121H170341 N/A 148,218 7/1/20 - 6/30/21 (148,218) (148,218) (148,218)

Total U.S. Department of Agriculture (78,355) - 2,571,790 (2,836,528) - (2,836,528) - 102,190 - (317,751) 76,848 -

U.S. Department of Health and Human Services

Passed-through State Department of Health and Human Services:

General Fund:

Medical Assistance Program 93.778 2005NJ5MAP N/A 246,151 7/1/19 - 6/30/20 (9,645) 9,645 -

Medical Assistance Program 93.778 2105NJ5MAP N/A 270,757 7/1/20 - 6/30/21 270,757 (270,757) (270,757) -

Total General Fund (9,645) - 280,402 (270,757) - (270,757) - - - -- -

U.S. Department of Education

Passed-through State Department of Education:

Special Revenue Fund:

Title I, Part A 84.010 S010A190030 ESSA-1310-20 1,373,945 7/1/19 - 9/30/20 (449,625) 449,625 -

Title I, Part A

84.010 S010A200030 ESSA-1310-21 1,444,446 7/1/20 - 9/30/21 826,899 (1,367,578) (1,367,578) (540,679)

Title I, SIA 84.010 S010A200030 ESSA-1310-21 11,300 7/1/20 - 9/30/21 - (11,300) (11,300) (11,300)

Total ESSA, Title I, Part A (449,625) - 1,276,524 (1,378,878) - (1,378,878) - - - (551,979) - -

Title II, Part A 84.367A S367A190029 ESSA-1310-20 360,515 7/1/19 - 9/30/20 (30,017) 30,017 -

Title II, Part A 84.367A S367A200029 ESSA-1310-21 311,590 7/1/20 - 9/30/21 175,684 (208,432) (208,432) (32,748)

Total ESSA, Title II, Part A, Innovative Programs (30,017) - 205,701 (208,432) - (208,432) - - - (32,748) - -

Title III, English Language Enhancement 84.365A S365A190030 ESSA-1310-20 45,705 7/1/19 - 9/30/20 (13,770)

13,770 -

Title III, English Language Enhancement 84.365A S365A200030 ESSA-1310-21 53,160 7/1/20 - 9/30/21 30,847 (51,594) (51,594) (20,747)

Title III, Immigrant 84.365 S365A190030 ESSA-1310-20 10,466 7/1/19 - 9/30/20 - -

Title III, Immigrant 84.365 S365A200030 ESSA-1310-21 18,425 7/1/20 - 9/30/21 3,125 (7,479) (7,479) (4,354)

Total ESSA, Title III (13,770) - 47,742 (59,073) - (59,073) - - - (25,101) - -

I.D.E.A. Part B - Basic 84.027 H027A190100 IDEA2020 1,792,584 7/1/19 - 9/30/20 (243,538) 243,538 -

I.D.E.A. Part B - Basic 84.027 H027A200100 IDEA2021 1,934,439 7/1/20 - 9/30/21 1,620,738 (1,894,255) (1,894,255) (273,517)

I.D.E.A. Part B - Basic - 21st Century 84.027 H027A190100 IDEA2020 27,403 9/1/19 - 8/31/20 - -

I.D.E.A. Part B - Basic - 21st Century 84.027 H027A200100 IDEA2021 25,000 9/1/20 - 8/31/21 - (1,845)

(1,845) (1,845)

I.D.E.A. Part B - Preschool 84.173 H173A190114 IDEA2020 87,471 7/1/19 - 9/30/20 - -

I.D.E.A. Part B - Preschool 84.173 H173A200114 IDEA2021 94,364 7/1/20 - 9/30/21 37,805 (40,697) (40,697) (2,892)

Total IDEA Part B (243,538) - 1,902,081 (1,936,797) - (1,936,797) - - - (278,254) - -

Carl Perkins Vocational PL #101-392 84.048 V048A190030 PERK012020 64,306 7/1/19 - 6/30/20 (15,272) 15,272 - -

Carl Perkins Vocational PL #101-392 84.048 V048A200030 PERK012021 58,720 7/1/20 - 6/30/21 50,330 (52,602) (52,602) (2,272)

CTE Teacher Pathway Initiative Grant 84.048 V048A200030 N/A 17,500 9/1/19 - 7/31/22 4,920 (7,905) (7,905) (2,985)

Total Carl Perkins Vocational PL #101-392 (15,272) - 70,522 (60,507) -

(60,507) - - - (5,257) - -

21st Century Community Learning Centers 84.287 S287C190030 N/A 500,000 9/1/19 - 8/31/20 (121,577) 196,659 (75,082) (75,082) -

21st Century Community Learning Centers 84.287 S287C200030 N/A 500,000 9/1/20 - 8/31/21 217,274 (260,715) (260,715) (43,441)

Total 21st Century Community Learning Centers (121,577) - 413,933 (335,797) - (335,797) - - - (43,441) - -

CARES Emergency Relief Grant 84.425D S425D200027 N/A 1,142,521 3/13/20 - 9/30/23 (12,965) 912,075 (1,137,323) (1,137,323) (238,213)

Elementary and Secondary School Emergency Relief Fund 84.425D S425D200027 N/A 4,247,076 3/13/20 - 9/30/23 - (1,098,100) (1,098,100) (1,098,100)

Learning Acceleration Grant 84.425D S425D200027 N/A 272,555 3/13/20 - 9/30/23 -

(33,389) (33,389) (33,389)

Total CARES Emergency Relief Grant (12,965) - 912,075 (2,268,812) - (2,268,812) - - - (1,369,702) - -

Bridging the Digital Divide 21.019 SLT0007 N/A 663,860 7/16/20 - 10/31/20 663,258 (663,258) (663,258) -

Nonpublic COVID Technology 21.019 SLT0007 N/A 18,793 7/16/20 - 10/31/20 18,689 (18,689) (18,689) -

Total Bridging the Digital Divide - -681,947 (681,947) - (681,947) - - - -- -

COVID Relief Fund 21.019 SLT0007 N/A 596,083 3/1/20 - 12/31/20 596,083 (596,083) (596,083) -

Total COVID Relief Fund - -

596,083 (596,083) - (596,083) - - - -- -

Total Special Revenue Fund (886,764) - 6,106,608 (7,526,326) - (7,526,326) - - - (2,306,482) - -

Total Federal Financial Awards (974,764)$ - 8,958,800 (10,633,611) - (10,633,611) - 102,190 - (2,624,233) 76,848 -

The accompanying notes to Schedules of Expenditures of Awards and Financial Assistance are an integral part of this statement

119

EGG HARBOR TOWNSHIP SCHOOL DISTRICT K-4

Schedule of Expenditures of State Financial Assistance Schedule B

For the Fiscal Year Ended June 30, 2021

MEMO

Deferred

Deferred Repayment Revenue/ Cumulative

Federal Grantor/Pass-Through Grantor/ Grant or State Award Grant Revenue Due to Carryover Cash Budgetary Transfer/ of Prior Year's (Accounts Interfund Due to Budgetary Total

Program Title Project Number Amount Period (Accts Receivable) Grantor Amount Received Expenditures Adjustment Balances Receivable) Payable Grantor Receivable Expenditures

State Department of Education

General Fund:

Equalization Aid 21-495-034-5120-078 40,808,892 7/1/20-6/30/21 40,808,892 (40,808,892) 4,098,408 40,808,892

Categorical Special Education Aid 21-495-034-5120-089 4,443,028 7/1/20-6/30/21 4,443,028 (4,443,028) 446,210 4,443,028

Security Aid 21-495-034-5120-084 1,547,671 7/1/20-6/30/21 1,547,671 (1,547,671) 155,431 1,547,671

Total State Aid Public Cluster - - - 46,799,591 (46,799,591) - - - - - 4,700,049 46,799,591

Categorical Transportation Aid 21-495-034-5120-014 3,273,116 7/1/20-6/30/21 3,273,116 (3,273,116) 328,717 3,273,116

Extraordinary Special Education Aid 20-495-034-5120-044 1,060,982 7/1/19-6/30/20 (1,212,483) 1,212,483 - 1,060,982

Extraordinary Special Education Aid 21-495-034-5120-044 1,958,338 7/1/20-6/30/21 (1,958,338) (1,958,338) 1,958,338

Nonpublic School Transportation Aid N/A 42,027 7/1/19-6/30/20 (42,027) 42,027 - 42,027

Nonpublic School Transportation Aid N/A 112,483 7/1/20-6/30/21 (112,483) (112,483) 112,483

Reimbursed TPAF Social Security Contributions 20-495-034-5095-003 3,966,940 7/1/19-6/30/20 (211,119) 211,119 - 3,966,940

Reim

bursed TPAF Social Security Contributions 21-495-034-5095-003 4,331,223 7/1/20-6/30/21 4,116,375 (4,331,223) (214,848) 4,331,223

On-Behalf TPAF Pension Contributions 21-495-034-5095-002 15,089,788 7/1/20-6/30/21 15,089,788 (15,089,788) 15,089,788

On-Behalf TPAF Post Retirement Medical 21-495-034-5095-001 4,728,904 7/1/20-6/30/21 4,728,904 (4,728,904) 4,728,904

On-Behalf TPAF Non-contributory Insurance 21-495-034-5095-004 6,444 7/1/20-6/30/21 6,444 (6,444) 6,444

.

Total General Fund (1,465,629) - - 75,479,847 (76,299,887) - - (2,285,669) - - 5,028,766 81,369,836

Special Revenue Fund:

Preschool Expansion Aid 21-495-034-5120-086 2,835,866 7/1/20-6/30/21 2,835,866 (1,600,081) 1,235,785 283,587 1,600,081

New Jersey Nonpublic Aid:

Textbook Aid 20-100-034-5120-064 19,502 7/1/19-6/30/20 904 (904) - 18,598

Textbook Aid 21-100-034-5120-064 26,391 7/1/20-6/30/21 26,391 (26,358) 33 26,358

Auxiliary Services:

Compensatory Education 20-100-034-5120-067 49,159 7/1/19-6/30/20 (5,564) 5,564 - 49,159

Compensatory Education 21-100-034-5120-067 59,221 7/1/20-6/30/21 59,221 (59,221) - 59,221

ESL 20-100-034-5120-067 827 7/1/19-6/30/20 827 (827) -

Home Instruction 20-100-034-5120-067 1,453 7/1/19-6/30/20 (1,453) 1,453 - 1,453

Handicapped Services:

Ex

amination and Classification 20-100-034-5120-066 37,529 7/1/19-6/30/20 (7,757) 12,917 7,757 (12,917) - - 24,612

Examination and Classification 21-100-034-5120-066 34,566 7/1/20-6/30/21 34,566 (30,365) 4,201 30,365

Corrective Speech 21-100-034-5120-066 10,572 7/1/20-6/30/21 10,572 (10,572) - 10,572

Supplemental Instruction 20-100-034-5120-066 29,951 7/1/19-6/30/20 4,291 (4,291) - 25,660

Supplemental Instruction 21-100-034-5120-066 29,951 7/1/20-6/30/21 29,951 (27,668) 2,283 27,668

Nursing 20-100-034-5120-070 37,345 7/1/19-6/30/20 2,734 (2,734) - 34,611

Nursing 21-100-034-5120-070 45,390 7/1/20-6/30/21 45,390 (42,682) 2,708 42,682

Technology 20-100-034-5120-373 13,320 7/1/19-6/30/20 2,483 (2,483) - 10,837

Security 20-100-034-5120-509 57,750 7/1/19-6/30/20 5,350 (5,350) - 52,400

Security 21-100-034-5120-509 77,875 7/1/20-6/30/21 77,875 (68,498) 9,377 68,498

Total Special Revenue Fund (14,774) 29,506 - 3,134,606 (1,865,445) - (29,506) - 1,235,785 18,602 283,587 2,084,228

Debt Service Fund:

Debt Service Aid Type II 21-495-034-5120-075 3,242,453 7/1/20-6/30/21 3,242,453

(3,242,453) 3,242,453

Total Debt Service Fund - - - 3,242,453 (3,242,453) - - - - - - 3,242,453

State Department of Agriculture

Enterprise Fund:

State School Lunch Program 20-100-010-3350-023 30,414 7/1/19-6/30/20 (9,089) 8,103 986 - 30,414

State School Lunch Program 21-100-010-3350-023 77,447 7/1/20-6/30/21 68,757 (77,447) (8,690) 77,447

(9,089) - - 76,860 (77,447) 986 - (8,690) - - - 107,861

Total State Financial Assistance (1,489,492)$ 29,506$ - 81,933,766 (81,485,232) 986 (29,506) (2,294,359) 1,235,785 18,602 5,312,353 86,804,378

Less: On-Behalf TPAF Pension Contributions (19,825,136)

(61,660,096)

Balance at June 30, 2021Balance at June 30, 2020

The accompanying notes to Schedules of Expenditures of Awards and Financial Assistance are an integral part of this statement

120

Egg Harbor Township Board of Education

Notes to the Schedules of Financial Assistance

June 30, 2021

NOTE 1. GENERAL

The accompanying schedules of expenditures of federal awards and state financial assistance include

federal and state award activity of the Board of Education, Egg Harbor Township School District. The

Board of Education is defined in Note 1(A) to the Board's basic financial statements. All federal awards

and state financial assistance received directly from federal and state agencies, as well as federal awards

and state financial assistance passed through other government agencies is included on the schedule of

expenditures of federal awards and state financial assistance.

NOTE 2. BASIS OF ACCOUNTING

The accompanying schedules of expenditures of awards and financial assistance are presented on the

budgetary basis of accounting with the exception of programs recorded in the food service fund, which

are presented using the accrual basis of accounting. These bases of accounting are described in Note 1

to the Board's basic financial statements. The information in this schedule is presented in accordance

with the requirements of OMB Uniform Guidance. Therefore, some amounts presented in this schedule

may differ from amounts presented in, or used in the preparation of, the basic financial statements. The

District has elected not to use the 10% de minimis indirect cost rate.

NOTE 3. RELATIONSHIP TO GENERAL PURPOSE FINANCIAL STATEMENTS

The basic financial statements present the general fund and special revenue fund on a GAAP basis.

Budgetary comparison statements or schedules (RSI) are presented for the general fund and special

revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by

law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not

recognized until the subsequent year or when expenditures have been made.

The general fund is presented in the accompanying schedules on the modified accrual basis with the

exception of the revenue recognition of the one or more deferred June state aid payment in the current

budget year, which is mandated pursuant to NJSA 18A:22-44.2. For GAAP purposes that payments are

not recognized until the subsequent budget year due to the state deferral and recording of the one or

more June state aid payments in the subsequent year. The special revenue fund is presented in the

accompanying schedules on the grant accounting budgetary basis which recognizes encumbrances as

expenditures and also recognizes the related revenues, whereas the GAAP basis does not. The special

revenue fund also recognizes the last state aid payment in the current budget year, consistent with NJSA

18A:22-44.2.

The net adjustment to reconcile from budgetary basis to GAAP basis is ($504,761) for the general fund

and ($620,826) for the special revenue fund. See the following schedule for a reconciliation of the

budgetary basis to the modified accrual basis of accounting for the general and special revenue funds.

Awards and financial assistance revenues are reported in the Board's basic financial statements on a

GAAP basis as follows:

{This space intentionally left blank}

121

Egg Harbor Township Board of Education

Notes to the Schedules of Financial Assistance

June 30, 2021

Special Deb

t

General Revenue Service Food

Fund

Fund Fund Service Total

State Assistance:

Actual amounts

(budgetary) “revenues”

from the Schedule of

Expenditures of State

Financial Assistance $76,299,887 1,865,445 3,242,453 77,447 81,485,232

Difference – budget to

“GAAP”

Grant accounting

budgetary basis differs

from GAAP in that

encumbrances are

recognized as

expenditures, and the

related revenue is

reco

g

nized.

(

304,274

)

(

304,274

)

The last state aid

payment is recognized as

revenue for budgetary

purposes, and differs

from GAAP which does

not recognize this

revenue until the

subsequent year when

the State recognizes the

related expense (GASB

33

)

.

(

504,761

)

(

283,587

)

(

788,348

)

Total State revenue as

reported on the

statement of revenues,

expenditures and

changes in fund

balances $75,795,126 1,277,584 3,242,453 77,447 80,392,610

122

Egg Harbor Township Board of Education

Notes to the Schedules of Financial Assistance

June 30, 2021

General Special Food

Fund

Revenue Fund Service Total

Federal Assistance:

Actual amounts (budgetary)

“revenues” from the Schedule of

Expenditures of Federal Awards $270,757 7,526,326 2,836,528 10,633,611

Difference

–

bud

g

et to “GAAP”

Grant accounting budgetary basis

differs from GAAP in that

encumbrances are recognized as

expenditures, and the related

revenue is reco

g

nized.

(

32,965

)

(

32,965

)

Total Federal revenue as reported

on the statement of revenue,

expenditures, and changes in fund

balances $270,757 7,493,361 2,836,528 10,600,646

NOTE 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amounts reported in the related federal

and state financial reports.

NOTE 5. OTHER

Revenues and expenditures reported under the Food Distribution Program represent current year value

received and current year distributions, respectively. The amounts reported as TPAF Pension

Contributions and OPEB – GASB 75 represent the amount paid by the State on behalf of the district for

the year ended June 30, 2021. TPAF Social Security Contributions represents the amount reimbursed by

the State for the employer’s share of social security contributions for TPAF members for the year ended

June 30, 2021.

123

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Part I -- Summary of Auditor's Results

Financial Statement Section

Type of auditor's report issued: Unmodified

Internal control over financial reporting:

1) Material weakness(es) identified? yes X no

2) Significant deficiencies identified

that are not considered to be material

weaknesses? yes X none reported

Noncompliance material to basic financial

statements noted? yes X no

Federal Awards Section

Internal Control over major programs:

1) Material weakness(es) identified? yes X no

2) Significant deficiencies identified yes X none reported

Type of auditor's report on compliance for

major programs Unmodified

Any audit findings disclosed that are required

to be reported in accordance with

Uniform Guidance yes X no

Identification of major programs:

CFDA Number(s)

Name of Federal Program or Cluster

Child Nutrition Cluster

10.553 School Breakfast Program

10.555 National School Lunch Program

10.555

Food Distribution Program

10.555 Emergency Operational Costs Reimbursement Program

10.629

P - EBT Administration

21.019 Coronavirus Relief Fund

21.019 Digital Divide

21.019 Non Public Covid Technology

84.425 CARES Emergency Relief Grant

84.425 ESSER

84.425 Learning Acceleration

Dollar threshold used to determine Type A programs: $750,000

Auditee qualified as low-risk auditee? X yes no

124

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Part I -- Summary of Auditor's Results

State Awards Section

Internal Control over major programs:

1) Material weakness(es) identified? yes X no

2) Significant deficiencies identified yes X none reported

Type of auditor's report on compliance for

major programs Unmodified

Any audit findings disclosed that are required

to be reported in accordance NJOMB Circular

Letter 15-08? yes X no

Identification of major programs:

GMIS Number(s)

Name of State Program

21-495-034-5120-078 Equalization Aid

21-495-034-5120-089 Special Education Aid

21-495-034-5120-084 Security Aid

21-495-034-5120-044 Extraordinary Special Education Aid

21-495-034-5120-075 Debt Service Aid Type II

N) Dollar threshold used to determine Type A programs: $1,849,803

O) Auditee qualified as low-risk auditee? X yes no

125

EGG HARBOR TOWNSHIP SCHOOL DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT’D)

FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Part 2 – Schedule of Financial Statement Findings

NONE

Part 3 – Schedule of Federal and State Award Findings and Questioned Costs

NONE

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT

FOR THE FISCAL YEAR ENDED JUNE 30, 2020

STATUS OF PRIOR YEAR FINDINGS

NONE

126