SYNOPSIS OF 2025 AUDIT REPORT OF
BOROUGH OF ELMWOOD PARK
AS REQUIRED BY N.J.S. 40A:5-7
COMBINED COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
AS OF DECEMBER 31, 2025 AND 2024
2025 2024
ASSETS
Cash and Investments $ 19,552,075 $ 25,114,694
Taxes, Assessments, Liens and Utility Charges Receivable 1,836,027 1,252,800
Property Acquired for Taxes-Assessed Value 23,450 23,450
Accounts Receivable 2,168,813 2,815,764
Fixed Capital - Authorized and Uncompleted Utility 4,985,000 4,985,000
Fixed Capital - Utility 8,652,408 8,652,408
Deferred Charges to Future Taxation-General Capital 29,118,665 29,628,611
Deferred Charges to Revenue of Succeeding Years 566,263 1,462,235
Land, Buildings, Machinery, and Equipment 38,175,260 36,615,221
TOTAL ASSETS $ 105,077,961 $ 110,550,183
LIABILITIES, RESERVES AND FUND BALANCE
Bonds, Notes and Loans Payable $ 22,514,567 $ 23,305,690
Improvement Authorizations 6,397,454 7,840,891
Other Liabilities and Special Funds 12,601,303 15,440,236
Amortization of Debt for Fixed Capital
Acquired or Authorized 12,172,700 12,445,055
Reserve for Certain Assets Receivable 3,126,535 2,300,807
Investments in General Fixed Assets 38,175,260 36,615,221
Fund Balance 10,090,142 12,602,283
TOTAL LIABILITIES, RESERVES AND
FUND BALANCE $ 105,077,961 $ 110,550,183
BOROUGH OF ELMWOOD PARK
COMPARATIVE STATEMENTS OF OPERATIONS
AND CHANGES IN FUND BALANCE - CURRENT FUND
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
2025 2024
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized $ 5,285,000 $ 5,670,149
Miscellaneous-From Other Than
Local Property Taxes 10,270,569 9,796,777
Collection of Delinquent Taxes
and Tax Title Liens 563,183 719,171
Collection of Current Tax Levy 70,105,598 66,816,684
Other Credits to Income 1,436,583 823,415
TOTAL INCOME 87,660,933 83,826,196
EXPENDITURES
Budget Appropriations:
Municipal Purposes 37,303,499 35,962,974
County Taxes 7,652,553 6,902,608
Local School Taxes 38,150,204 37,534,767
Other Expenditures 87,295 738,157
TOTAL EXPENDITURES 83,193,551 81,138,506
Excess in Revenue 4,467,382 2,687,690
Adjustments to Income before Surplus:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year - 570,000
Statutory Excess to Surplus 4,467,382 3,257,690
Fund Balance, January 1 7,713,605 10,126,064
12,180,987 13,383,754
Less: Utilization as Anticipated Revenue 5,285,000 5,670,149
Fund Balance, December 31 $ 6,895,987 $ 7,713,605
BOROUGH OF ELMWOOD PARK
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES
IN FUND BALANCE - WATER UTILITY OPERATING FUND
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
2025 2024
REVENUE AND OTHER INCOME REALIZED
Surplus Anticipated $ 396,665
Miscellaneous-From Other Than Local Water Rents $ 118,332 286,397
Collection of Water Rents 4,429,234 4,651,283
Other Credits 375,833 174,898
TOTAL INCOME 4,923,399 5,509,243
EXPENDITURES
Budget Expenditures:
Operating 3,660,000 4,010,000
Debt Service 379,856 390,459
Deferred Charges and Statutory and Expenditures 80,000 69,029
TOTAL EXPENDITURES 4,119,856 4,469,488
Excess in Revenue 803,543 1,039,755
Fund Balance, January 1 4,639,318 6,296,228
5,442,861 7,335,983
Decreased by:
Utilization by Current Fund Budget 2,381,000 2,300,000
Utilization by Water Operating Budget - 396,665
Fund Balance, December 31 $ 3,061,861 $ 4,639,318
BOROUGH OF ELMWOOD PARK
RECOMMENDATIONS
It is recommended that:
- Unfunded improvement authorizations that are over five years old, where projects have been
completed, be funded through either a budget appropriation or through the issuance
of temporary or permanent debt.
- All cash receipts/revenue collections be properly recorded within the accounting software
to facilitate a more accurate reflection of departmental revenue and subsequent postings
to the general ledger.
- Purchase orders be encumbered when contracts are awarded and prior to the ordering of
goods and services.
- With respect to contracts awarded in excess of the bid threshold subject to the Local Public Contracts Law, it is recommended that:
- Emergency contract be ratified by the governing body and included in the official minutes.
- Requirements for the awarding of contract through the use of national cooperative purchasing agreements be adhered to in accordance with NJSA 52:34-6.2.
- All contracts and change orders approved by the governing body be encumbered when awarded.
- A report of accumulated sick and vacation time by employee be maintained on a current basis and be made available for audit on a timely basis.
The above synopsis was prepared from the audit of the Borough of Elmwood Park, for the year 2025.
This report of audit, submitted by Paul J. Lerch, Registered Municipal Accountant, is on file
at the Borough Clerk's office and may be inspected by any interested person.
Borough of Elmwood Park
Shanee Morris, RMC, CMR
Borough Clerk
