BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
| Fiscal Year |
Borough Contributions and Interest |
Employee Contributions |
Amount Reimbursed |
Ending Balance |
|---|---|---|---|---|
| Fiscal Year2021 | Borough Contributions and Interest $3,092.17 |
Employee Contributions $5,131.71 |
Amount Reimbursed $457.98 |
Ending Balance $100,922.23 |
| Fiscal Year2020 | Borough Contributions and Interest 4,609.99 |
Employee Contributions 7,650.65 |
Amount Reimbursed | Ending Balance 93,156.33 |
| Fiscal Year2019 | Borough Contributions and Interest 9,687.72 |
Employee Contributions 7,747.12 |
Amount Reimbursed | Ending Balance 80,895.69 |
The Borough has authorized a Length of Service Award Program (LOSAP) pursuant to section 457 (e) of the Internal Revenue Code and P.L. 1997, C. 388 as amended by P.L. 2001, C. 272 of the Statutes of New Jersey. The program provides for fixed annual contributions to a deferred income account for volunteer firefighters and first aid and rescue squad members who meet specified service criteria. The Borough sponsors the Program, which is administrated by a private contractor. The LOSAP Program is subject to an annual review in accordance with AICPA standards for attestation engagements. LOSAP review reports are available in the office of the Borough Clerk during scheduled working hours.
The Borough participates in several federal awards and state financial assistance grant programs. Entitlement to the funds is generally conditioned upon compliance with terms and conditions of the grant agreements and applicable regulations, including the expenditures of funds for eligible purposes. These programs are also subject to compliance and financial audits by the grantors or their representatives. As of December 31, 2021, the Borough does not believe that any material liabilities will result from such audits.
As of December 31, 2021, the Borough of Somerville was a party to various construction contracts and commitments that totaled $620,715 in its General Capital Fund.
As of the date of this report, the Borough has litigation pending that traditionally would be covered through the procurement of liability insurance coverages.
As of December 31, 2021, there were tax appeals pending before the New Jersey Tax Court of an undetermined amount. Judgments favorable to the taxpayers generally extend to two years following the year adjudicated and would also subject the Borough to a liability for statutory interest on the amount of taxes refunded from the date of payment to the date of refund (R.S. 54:3-27.2).
County taxes paid on the reductions in assessed valuations are subject to credits against the County tax levy of the year subsequent to the year in which the appeals are adjudicated.
As of December 31, 2021 and 2020, the Borough has $128,287.06 and $53,287.06, respectively, set aside for potential tax appeals.