Docstoc

BOROUGH OF OAKLAND County of Bergen_ New Jersey

Document Sample
BOROUGH OF OAKLAND County of Bergen_ New Jersey Powered By Docstoc
					         BOROUGH OF OAKLAND
       County of Bergen, New Jersey

  Comprehensive Annual Financial Report
        Year Ended December 31, 2008
(With Independent Auditors' Reports Thereon)
BOROUGH OF OAKLAND
Comprehensive Annual Financial Report
Table of Contents
Year Ended December 31, 2008




Reference                                                                         Page

        INTRODUCTORY SECTION

        Roster of Officials                                                           1
        Independent Auditors' Report                                                3-4

        FINANCIAL SECTION

A-1     Combined Statement of Assets, Liabilities, Reserves and Fund Balance --
        All Fund Types and Account Groups                                            5
A-2     Combined Statement of Revenues, Expenses and Changes in Fund Balance --
        Statutory Basis                                                              6
A-3     Combined Statement of Revenues, Expenses and Changes in Fund Balance --
        Statutory Basis - Budget and Actual - Current Fund                           7
A-4     Combined Statement of Revenues, Expenses and Changes in Fund Balance --
        Statutory Basis - Budget and Actual - Water Utility Operating Fund           8
A-5     Combined Statement of Revenues, Expenses and Changes in Fund Balance --
        Statutory Basis - Budget and Actual - Sewer Utility Operating Fund            9
        Notes to Financial Statements                                             10-46

        Supplementary Data

        Current Fund
B-1     Statement of Assets, Liabilities and Fund Balance - Statutory Basis          47
B-2     Statement of Revenues and Other Credits to Income - Statutory Basis       48-49
B-3     Statement of Expenditures and Other Charges to Income - Statutory Basis   50-55

        Federal and State Grant Fund
C-1     Statement of Assets, Liabilities and Reserves - Statutory Basis             56
C-2     Statement of Grants Receivable                                              57
C-3     Statement of Appropriated Reserves                                          58
C-4     Statement of Unappropriated Reserves                                        59

        Trust Fund
D-1     Statement of Assets, Liabilities and Reserves - Statutory Basis             60
BOROUGH OF OAKLAND
Comprehensive Annual Financial Report
Table of Contents
Year Ended December 31, 2008




Reference                                                                                      Page

        FINANCIAL SECTION (Continued)

        Supplementary Data (Continued)

        General Capital Fund
E-1     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      61
E-3     Statement of Deferred Charges to Future Taxation - Unfunded                              62
E-4     Statement of Improvement Authorizations                                                  63
E-5     Statement of Serial Bonds Payable                                                        64
E-6     Statement of Bond Anticipation Notes Payable                                             65
E-7     Statement of Bonds and Notes Authorized but not Issued                                   66

        Water Utility Fund
F-1     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      67
F-2     Statement of Revenues and Other Credits to Income - Statutory Basis                      68
F-3     Statement of Expenditures and Other Charges to Income - Statutory Basis                  69
F-4     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      70

        Sewer Utility Fund
G-1     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      71
G-2     Statement of Revenues and Other Credits to Income - Statutory Basis                      72
G-3     Statement of Expenditures and Other Charges to Income - Statutory Basis                  73
G-4     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      74
G-5     Statement of Assets, Liabilities and Fund Balance - Statutory Basis                      75

        General Fixed Asset Account Group
H-1     Statement of Assets and Fund Balance - Statutory Basis                                   76
H-2     Statement of Reserve for General Fixed Assets                                            77

        STATISTICAL SECTION

J-1     Adopted Budgets                                                                        79-81
J-2     Fund Balance Summary                                                                      82
J-3     Tax Levy and Collection Data                                                              83
J-4     Assessed and County Equalized Valuation Data                                              84
J-5     Tax Requirement and Rate Data                                                             85
J-6     Ratio of Gross and Net Debt to County Equalized Value and Debt Per Capita                 86
J-7     Legal Debt Margin                                                                         87
J-8     Direct and Overlapping Debt                                                               88
J-9     Ratio of Annual Debt Service Appropriations to Total Adopted Current Fund Appropriat      89
J-10    Demographic Statistics                                                                    90
J-11    Ten Largest Taxpayers by Assessment                                                       91
J-12    Value of New Construction, Improvements, Alterations and Demolitions                      92
BOROUGH OF OAKLAND
Comprehensive Annual Financial Report
Table of Contents
Year Ended December 31, 2008




Reference                                                                               Page

        SINGLE AUDIT SECTION

K-1     Report on Compliance and on Internal Control Structure Over Financial           94-95
        Reporting Based on an Audit of Financial Statements Performed in Accordance
        With Government Auditing Standards
K-3     Schedule of Expenditures of Federal Financial Assistance                           96
K-4     Schedule of Expenditures of State Financial Assistance                          97-98
K-5     Notes to Schedules of Federal and State Financial Assistance                   99-100
K-6     Schedule of Findings and Questioned Costs                                     101-105
K-7     Summary of Prior Audit Findings                                                   106

        GENERAL COMMENTS AND RECOMMENDATIONS

        Cash Cycle                                                                       108
        Revenues Cycle                                                                   109
        Expenditures Cycle                                                               110
        Payroll Cycle                                                                    111
        Other Significant Matters                                                        112
        Water Utility                                                                    113
        Sewer Utility                                                                    114
        Recommendations                                                                  115
        Status of Prior Years' Recommendations                                           116
      BOROUGH OF OAKLAND

Comprehensive Annual Financial Report

         Introductory Section
BOROUGH OF OAKLAND
Roster of Officials
Year Ended December 31, 2008


                                                                         Term
                Name                                    Title           Expires

John P. Szabo, Jr.                      Mayor                           12/31/11
Christopher Visconti                    Councilman                      12/31/09
Pasquale Pignatelli                     Councilman                      12/31/09
Frank Di Pentima                        Councilman                      12/31/11
Elizabeth Stagg                         Councilwoman                    12/31/11
Karen F. Marcalus                       Councilwoman                    12/31/10
Donald T. Burns                         Councilman                      12/31/10
Richard Kunze                           Administrator
Lisa Duncan                             Municipal Clerk
                                        Assessment Search Officer
James Mangin                            Chief Financial Officer
                                        Treasurer
Ellen Amorino                           Tax Collector
                                        Utility Collector
                                        Tax Search Officer
Nancy Lightbody                         Water/Sewer Account Clerk
Marjorie Angermueller                   Payroll Supervisor
Karin Dubowick                          Registrar of Vital Statistics
Brian Chewcaskie, Esq.                  Borough Attorney
Gluck, Walrath et als, Esq.             Bond Counsel
Scott Holzhauer                         Tax Assessor
Boswell McClave Engineering             Borough Engineer
Edward Kasper                           Chief of Police
John A. Conte Jr., Esq.                 Municipal Court Judge           12/31/11
Tiffany Burns                           Municipal Court Administrator
                                        Deputy Court Administrator
Thomas Buonocore, Esq.                  Prosecutor
Robert Fortunato, Esq.                  Public Defender
Daniel Hagberg                          Construction Code Official
                                        Building Sub-Code Official
                                        Fire Official
Thomas Zaconie                          Plumbing Sub-Code Official
Christopher Walthour                    Electrical Sub-Code Official
Thomas Dillon                           Fire Sub-Code Official
Professional Insurance Associates, Inc. Risk Management Consultants




                                                                                   1
      BOROUGH OF OAKLAND

Comprehensive Annual Financial Report

          Financial Section




                                        2
Di Maria & Di Maria LLP
Public Accountants & Consultants


                                                                    245 Union Street
                                                             Lodi, New Jersey 07644
                                                                 Voice 973.779.6890
                                                             Facsimile 973.779.6891
                                                          www.dimariaanddimaria.com




Independent Auditors' Report

Honorable Mayor and Members of the Borough Council
Borough of Oakland, County of Bergen, New Jersey

We have audited the accompanying financial statements of the various funds of the
Borough of Oakland, State of New Jersey, as of and for the years ended December 31,
2008 and 2007, as listed in the table of contents. These financial statements are the
responsibility of the Borough's management. Our responsibility is to express an opinion
on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States; and the audit requirements
       ib d b the Di i i      f L    l G
prescribed by th Division of Local Government Services, Department of Community
                                                 t S i        D     t  t f C         it
Affairs, State of New Jersey. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.

As discussed in Note 1, the Borough of Oakland prepares its financial statements on a
basis of accounting prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey, that demonstrates compliance
with a modified accrual basis, with certain exceptions, and the budget laws of the State
of New Jersey, which is a comprehensive basis of accounting other than generally
accepted accounting principles.

In our opinion, because of the Borough of Oakland's policy to prepare it's financial
statements on the basis of accounting discussed in preceding paragraph, the financial
statements above do not present fairly, in conformity with generally accepted
accounting principles, the financial position of the various funds of the Borough of
Oakland, State of New Jersey, as of December 31, 2008 and 2007 or the results of it's
operations or cash flows for the years then ended.




                                                                                           3
Di Maria & Di Maria LLP



Independent Auditors' Report (Continued)


However, in our opinion, the financial statements present fairly, in all material respects,
the financial position of the various funds of the Borough of Oakland, State of New
Jersey at December 31, 2008 and 2007, and the results of its operations and the
changes in fund balance of the individual funds for the years then ended, and the
revenues, expenditures and fund balance for the years ended December 31, 2008 and
2007 on the basis of accounting described in Note 1.

In accordance with Government Auditing Standards, we have also issued our report
dated June 30, 2009 on our consideration of the Borough of Oakland, State of New
Jersey internal control structure and report dated June 30, 2009 on its compliance with
laws, regulations, contracts and grants.

Our audit was conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying schedules of expenditures of federal
awards and/or state financial assistance are presented for the purpose of additional
analysis as required by the U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations and State of New
Jersey's Office of Management and Budget Circular 04-04, Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid, and are not a required part of
              statements.       addition,
the financial statements In addition the supplementary financial statement presented
for the various funds are presented for purposes of additional analysis as required by
the Division of Local Government Services, Department of Community Affairs, State of
New Jersey. Such information has been subjected to the auditing procedures applied
in the audit of the financial statements and, in our opinion, is fairly stated in all material
respects, in relation to the financial statements taken as a whole.



DI MARIA & DI MARIA LLP
Public Accountants and Consultants


Frank R. Di Maria
Frank R. Di Maria
Registered Municipal Accountant
RMA No. CR00463

June 30, 2009




                                                                                                 4
                                                                                                                                                                                                                             A-1




BOROUGH OF OAKLAND
COMBINED STATEMENT OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2008
(With Comparative Totals for 2007)




                                                       Federal and                       General      Water Utility   Water Utility   Sewer Utility   Sewer Utility     Sewer      Fixed Asset               Totals
                                           Current     State Grant        Trust          Capital       Operating       Capital         Operating        Capital       Assessment     Account            (Memorandum Only)
                                            Fund          Fund            Fund            Fund          Fund            Fund             Fund            Fund            Trust        Group             2008        2007

ASSETS AND OTHER DEBITS

Cash                                   $ 3,358,542     $   152,623   $ 3,405,242     $      714,103   $   268,492     $ 1,462,442     $    35,645     $         -     $        -   $            -   $ 9,397,089    $ 8,175,036
Deferred Compensation Assets                     -               -       328,551                  -             -               -               -               -              -                -       328,551        398,746
Assessment Receivable                            -               -             -                  -             -               -               -               -          1,800                -         1,800          1,800
Consumer Accounts Receivable                     -               -             -                  -        74,159               -          39,670               -              -                -       113,829         49,229
Interfunds Receivable                      220,304           4,650       394,223            205,000        60,118               -          29,898               -              -                -       914,193      3,974,141
Intergovernmental Receivable                     -         150,000             -            544,330             -               -               -               -              -                -       694,330        615,163
Other Receivables                        1,530,560               -             -                  -            29               -               -               -              -                -     1,530,589      1,494,432
Deferred Charges                           106,602               -             -         15,972,993       120,564               -           3,933               -              -                -    16,204,092     12,271,270
Fixed Capital Authorized & Uncompleted           -               -             -                  -             -       1,538,587               -         282,000              -                -     1,820,587      3,261,822
Fixed Capital                                    -               -             -                  -             -      10,589,757               -          74,100              -                -    10,663,857     10,663,857
Fixed Assets                                     -               -             -                  -             -               -               -               -              -       24,937,791    24,937,791     24,937,791

 Total Assets and Other Debits           $ 5,216,008   $   307,273   $ 4,128,016     $17,436,426      $   523,362     $13,590,786     $   109,146     $   356,100     $    1,800   $24,937,791      $66,606,708    $65,843,287


LIABILITIES, RESERVES AND FUND BALANCE

Interfunds Payable                     $ 253,740       $         -   $     221,461   $      292,338   $    58,339     $      60,118   $    28,197     $         -     $        -   $            -   $   914,193    $ 3,974,141
Deferred Revenues                               -          165,599               -                -             -                 -             -               -              -                -       165,599        208,586
Accounts/Contracts Payable                 70,253          141,674               -          444,543             -            28,276             -         203,697              -                -       888,443        622,518
Other Liabilities and Reserves          1,748,575                -       3,904,996          563,527        82,714         1,373,415        38,584               -              -                -     7,711,811      7,425,580
Improvement Authorizations                      -                -               -        3,426,328             -         1,317,936             -          78,303              -                -     4,822,567      7,182,145
Intergovernmental Payable                  10,046                -           1,559                -             -                 -             -               -              -                -        11,605         16,210
Serial Bonds Payable                            -                -               -        6,063,000             -         2,694,000             -               -              -                -     8,757,000      9,992,000
Bond Anticipation Notes Payable                 -                -               -        6,271,925             -                 -             -               -              -                -     6,271,925              -
Loan Payable                                    -                -               -           51,666             -                 -             -               -              -                -        51,666         71,623
Reserve for Receivables and Other Ass   1,750,864                -               -                -        74,159                 -        39,670               -          1,800                -     1,866,493      2,596,121
Reserve for Investment in Fixed Assets          -                -               -                -             -                 -             -               -              -       24,937,791    24,937,791     24,937,791
Reserve for Amortization                        -                -               -                -             -         7,895,757             -          74,100              -                -     7,969,857      7,609,857
Fund Balance                            1,382,530                -               -          323,099       308,150           221,284         2,695               -              -                -     2,237,758      1,206,715

 Total Liabilities, Reserves and
 Fund Balance                           $ 5,216,008    $   307,273   $ 4,128,016     $ 17,436,426     $   523,362     $ 13,590,786    $   109,146     $   356,100     $    1,800   $ 24,937,791     $ 66,606,708   $ 65,843,287




    The accompanying Notes to Financial Statements
    are an integral part of this statement.                                                                                                                                                                                       5
                                                                                                                                  A-2

              BOROUGH OF OAKLAND
              COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE -
              STATUTORY BASIS
              Year Ended December 31, 2008




                                                                                  Water             Sewer
                                                                Current           Utility           Utility
                                                                 Fund             Fund              Fund              Total

              REVENUES AND OTHER CREDITS TO INCOME
              Revenues:
               Fund Balance Anticipated                  $    445,000         $    35,000       $     25,000      $    505,000
               Utility Rents                                        -           1,576,092            308,623         1,884,715
               Miscellaneous                                3,644,993              46,652                  -         3,691,645
               Defecit (General Budget)                             -              25,000                  -            25,000
               Receipts from Delinquent Taxes                 403,676                   -                  -           403,676
               Amount to be Raised by Taxation             12,880,241                   -                  -        12,880,241
              Total Revenues                               17,373,910           1,682,744            333,623        19,390,277
              Other Credits to Income                      39,549,226             202,256             31,377        39,782,859
              Total Revenues and Other Credits to Income $ 56,923,136         $ 1,885,000       $    365,000      $ 59,173,136


              EXPENDITURES AND OTHER CHARGES TO INCOME
              Expenditures:
               Within "CAPS":
                 Operations:
                   Salaries and Wages                        $ 5,853,851      $             -   $             -   $ 5,853,851
                   Other Expenses                               6,256,925                   -                 -     6,256,925
                 Deferred Charges and Statutory Expenditures      459,168                   -                 -       459,168
               Excluded From "CAPS":
                 Operations:
                   Salaries and Wages                               4,025         510,318             84,671           599,014
                   Other Expenses                               2,203,958         835,759            241,829         3,281,546
                 Capital Improvements                             100,000               -                  -           100,000
                 Debt Service                                   1,158,251         479,195                  -         1,637,446
                 Deferred Charges and Statutory Expenditures      887,843          59,728             13,500           961,071
               Judgments                                                -               -                  -                 -
               Deficit in Operations in Prior Years                     -               -                  -                 -
               Surplus (General Budget)                                 -               -             25,000            25,000
               Reserve for Uncollected Taxes                      605,522               -                  -           605,522
              Total Expenditures                               17,529,543       1,885,000            365,000        19,779,543
              Other Charges to Income                          38,256,887               -                  -        38,256,887
              Total Expenditures and Charges to Income       $ 55,786,430     $ 1,885,000       $    365,000      $ 58,036,430

              Statutory Excess to Fund Balance                  1,136,706                   -                 -       1,136,706

              Deferred Charges to Budget of Succeeding Year               -                 -                 -               -

              Fund Balance, January 1                             690,824          343,150             27,695         1,061,669
                                                                1,827,530          343,150             27,695         2,198,375
              Decreased by:
              Utilization as Anticipated Revenue                  445,000           35,000             25,000         505,000
              Fund Balance, December 31                       $ 1,382,530     $    308,150      $       2,695     $ 1,693,375




The accompanying Notes to Financial Statements
are an integral part of this statement.                                                                                            6
                                                                                                               A-3

             BOROUGH OF OAKLAND
             COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
             STATUTORY BASIS - BUDGET AND ACTUAL -- CURRENT FUND
             Year Ended December 31, 2008




                                                               Budget
                                                             as Modified       Actual           Variance

             REVENUES AND OTHER CREDITS TO INCOME
             Revenues:
              Fund Balance Anticipated                  $    445,000       $    445,000     $         -
              Miscellaneous Revenues                       4,068,754          3,644,993        (423,761)
              Receipts from Delinquent Taxes                 380,000            403,676          23,676
              Amount to be Raised by Taxation             12,635,789         12,880,241         244,452
             Total Revenues                               17,529,543         17,373,910        (155,633)
             Other Credits to Income                      37,632,429         39,549,226       1,916,797
             Total Revenues and Other Credits to Income $ 55,161,972       $ 56,923,136     $ 1,761,164


             EXPENDITURES AND OTHER CHARGES TO INCOME
             Expenditures:
              Within "CAPS":
                Operations:
                  Salaries and Wages                      $ 5,853,851      $ 5,853,851      $              -
                  Other Expenses                             6,256,925       6,256,925                     -
              Deferred Charges and Statutory Expenditures      459,168         459,168                     -
              Excluded From "CAPS":
                Operations:
                  Salaries and Wages                             4,025            4,025                 -
                  Other Expenses                             2,203,958        2,203,958                 -
              Capital Improvements                             100,000          100,000                 -
              Municipal Debt Service                         1,158,251        1,158,251                 -
              Deferred Charges                                 887,843          887,843                 -
              Reserve for Uncollected Taxes                    605,522          605,522                 -
             Total Expenditures                             17,529,543       17,529,543                 -
             Other Charges to Income                        37,632,429       38,256,887           624,458
             Total Expenditures and Charges to Income     $ 55,161,972     $ 55,786,430     $     624,458

             Statutory Excess to Current Fund Balance                          1,136,706

             Deferred Charges to Budget of Succeeding Year                              -

             Fund Balance, January 1                                           690,824
                                                                           $ 1,827,530
             Decreased by:
             Utilization as Anticipated Revenue                                445,000
             Fund Balance, December 31                                     $ 1,382,530




The accompanying Notes to Financial Statements
are an integral part of this statement.                                                                         7
                                                                                                               A-4

             BOROUGH OF OAKLAND
             COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
             STATUTORY BASIS - BUDGET AND ACTUAL -- WATER UTILITY OPERATING FUND
             Year Ended December 31, 2008




                                                               Budget
                                                             as Modified       Actual           Variance

             REVENUES AND OTHER CREDITS TO INCOME
             Revenues:
              Fund Balance Anticipated                  $    35,000        $    35,000      $           -
              Rents                                       1,785,000          1,576,092           (208,908)
              Miscellaneous                                  40,000             46,652              6,652
              Defecit (General Budget)                       25,000             25,000                  -
             Total Revenues                               1,885,000          1,682,744           (202,256)
             Other Credits to Income                              -            202,256            202,256
             Total Revenues and Other Credits to Income $ 1,885,000        $ 1,885,000      $           -


             EXPENDITURES AND OTHER CHARGES TO INCOME
             Expenditures:
              Operations:
                Salaries and Wages                    $   510,318          $   510,318      $              -
                Other Expenses                            835,759              835,759                     -
              Capital Improvements                              -                    -                     -
              Debt Service                                479,195              479,195                     -
              Deferred Charges                             14,728               14,728                     -
              Statutory Expenditures                       45,000               45,000                     -
              Judgments                                         -                    -                     -
              Deficit in Operations in Prior Years              -                    -                     -
              Surplus (General Budget)                          -                    -                     -
             Total Expenditures                         1,885,000            1,885,000                     -
             Other Charges to Income                            -                    -                     -
             Total Expenditures and Charges to Income $ 1,885,000          $ 1,885,000      $              -

             Statutory Excess to Current Fund Balance                                   -

             Deferred Charges to Budget of Succeeding Year                              -

             Fund Balance, January 1                                            343,150
                                                                                343,150
             Decreased by:
             Utilization as Anticipated Revenue                                  35,000
             Fund Balance, December 31                                     $    308,150




The accompanying Notes to Financial Statements
are an integral part of this statement.                                                                         8
                                                                                                               A-5

             BOROUGH OF OAKLAND
             COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
             STATUTORY BASIS - BUDGET AND ACTUAL -- SEWER UTILITY OPERATING FUND
             Year Ended December 31, 2008




                                                               Budget
                                                             as Modified       Actual           Variance

             REVENUES AND OTHER CREDITS TO INCOME
             Revenues:
              Fund Balance Anticipated                  $        25,000    $     25,000     $           -
              Rents                                             340,000         308,623           (31,377)
              Miscellaneous                                           -               -                 -
              Defecit (General Budget)                                -               -
             Total Revenues                                     365,000         333,623           (31,377)
             Other Credits to Income                                  -          31,377            31,377
             Total Revenues and Other Credits to Income $       365,000    $    365,000     $           -


             EXPENDITURES AND OTHER CHARGES TO INCOME
             Expenditures:
              Operations:
                Salaries and Wages                    $  84,671            $     84,671     $              -
                Other Expenses                          241,829                 241,829                    -
              Capital Improvements                            -                       -                    -
              Debt Service                                    -                       -                    -
              Deferred Charges                                -                       -                    -
              Statutory Expenditures                     13,500                  13,500                    -
              Judgments                                       -                       -                    -
              Deficit in Operations in Prior Years            -                       -                    -
              Surplus (General Budget)                   25,000                  25,000                    -
             Total Expenditures                         365,000                 365,000                    -
             Other Charges to Income                          -                       -                    -
             Total Expenditures and Charges to Income $ 365,000            $    365,000     $              -

             Statutory Excess to Current Fund Balance                                   -

             Deferred Charges to Budget of Succeeding Year                              -

             Fund Balance, January 1                                             27,695
                                                                           $     27,695
             Decreased by:
             Utilization as Anticipated Revenue                                  25,000
             Fund Balance, December 31                                     $      2,695




The accompanying Notes to Financial Statements
are an integral part of this statement.                                                                         9
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 1 - Reporting Entity, Organization and Function

A. Introduction

The Borough of Oakland (the "Borough") is a municipal corporation of the State of New
Jersey located in the county of Bergen and is located approximately 20 miles west of
the City of New York. The Borough's population according to the 2000 census is
12,466.

The Borough operates under a "Mayor-Council" form of government. The Mayor is the
chief executive officer. The Borough operates on a calendar fiscal year, January 1 to
December 31.

The municipal budget includes the following generally stated municipal services:

   General Government Functions
   Land Use Administration Functions
   Public Safety Functions
   Health and Human Service Functions
   Park and Recreation Functions
   Educational Functions
   Code Enforcement Functions
   Municipal Court Functions
   Capital Improvements
   Debt Service


B. Component Units

The financial statements of the component units of the municipality are not presented
in accordance with Governmental Accounting Standards Board Statement No. 14. If
the provisions of GASBS No. 14 had been complied with, the financial statements of
the following component units would have been either blended or discretely presented
with the financial statements of the municipality:

Volunteer Fire Department
Volunteer Ambulance Corp.
Free Public Library




                                                                                        10
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies

Financial Statement Reporting

The financial statements contain all applicable funds and account groups in
accordance with the "Requirements of Audit" and the "N.J. Comprehensive Annual
Financial Report" as promulgated by the State of New Jersey, Department of
Community Affairs, Division of Local Government Services. Such principles and
practices are designed primarily for determining compliance with legal provisions and
budgetary restrictions and as a means of reporting on the stewardship of public
officials with respect to public funds. Under this method of accounting, the municipality
accounts for its financial transactions through the following separate funds which
differs from the funds required by generally accepted accounting principles (GAAP).


Basis of Accounting

A modified accrual basis of accounting is followed with minor exceptions. Accounting
principles prescribed for New Jersey municipalities by the Department of Community
Affairs, Division of Local Government Services differ in certain respects from generally
     p
accepted accounting p        p     pp
                     g principles applicable to local g
                                                      government units.


Use of Estimates

The preparation of the financial statements requires management to make certain
estimates and assumptions that affect assets, liabilities, revenues and expenditures
during and as of the end of the reporting period. Accordingly, actual results may differ
from those estimates.


Reclassifications and Restatements

Certain reclassifications and restatements have been made to 2007 and prior
amounts.




                                                                                            11
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

A. Funds and Account Groups

The accounts are organized into the following funds and account groups:

Current Fund - The Current Fund accounts for resources and expenditures for
governmental operations of a general nature.

Federal and State Grant Fund - The Federal and State Grant Fund accounts for the
budgeted and unbudgeted revenue/receipt, expenditure/disbursement of federal and
state grants which qualify for accounting treatment more closely related to GAAP.

Trust Fund - The various Trust Funds account for receipts, custodianship and
disbursement of funds in accordance with the purpose for which each reserve was
created.

General Capital Fund - The General Capital fund accounts for receipt and
disbursement of funds for the acquisition of general capital facilities, other than those
acquired in the Current Fund. It is also the only fund, other than the Current Fund, that
                                            debt.
possesses the statutory authority to issue debt

General Fixed Asset Account Group - The General Fixed Asset Account Group
accounts for Township owned real and personal property in accordance with Technical
Accounting Directive #85-2.

Water & Sewer Utility Funds - The Water and Sewer Utility Funds are used to account
for the revenues and expenditures for the operation of the water and sewer utilities
and the related assets and liabilities. Acquisition or improvement of capital facilities
and assets are accounted for in the capital section of the funds.




                                                                                            12
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

B. Budgets and Budgetary Accounting

The municipality must adopt an annual budget in accordance with N.J.S.A. 40A:4 et al.
N.J.S.A. 40A:4-5 requires the governing body to introduce and approve the annual
municipal budget no later than February 10 of each year. At introduction, the
governing body shall fix the time and place for a public hearing on the budget and must
advertise the time and place at least ten (10) days prior to the hearing in a newspaper
published and circulated in the municipality. The public hearing must not be held less
than twenty-eight (28) days after the date the budget was introduced. After the
hearing has been held, the governing body may, by majority vote, adopt the budget or
may amend the budget in accordance with N.J.S.A. 40A:4-9. An extension of the
statutory dates for introduction, approval and adoption of the municipal budget may be
granted by the Director of the Division of Local Government Services, with the
permission of Local Finance Board. Budgets are adopted on the same basis of
accounting utilized for the preparation of the municipalitie's financial statements.

C. Cash and Investments

New J
N                 i i l it           i d b N.J.S.A. 40A:5-14 t d         it bli f d
      Jersey municipal units are required by N J S A 40A 5 14 to deposit public funds
in a bank or trust company having its place of business in the State of New Jersey and
organized under the laws of the United States or of the State of New Jersey or New
Jersey Cash Management Fund. N.J.S.A. 40A:5-15.1 provides a list of securities
which may be purchased by New Jersey municipal units.

The cash management plan adopted by the municipality requires that funds be
deposited 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.

N.J.S.A. 17:9-42 requires government units to deposit public funds only in public
depositories located in New Jersey, where the funds are secured in accordance with
the Act. Public funds are defined as the funds of any government unit. Public
depositories include banks (both state and national banks), savings and loan
institutions and savings banks, the deposits of which are federally insured. All public
depositories pledge collateral, having a market value of 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 in the collateral pool, is available to pay the full amount of their
deposits to the governmental units. All certificates of deposit are recorded as cash
regardless of date of maturity.



                                                                                             13
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

D. Interfunds

Interfund receivables and payables that arise from transactions between funds are
recorded by all funds affected by such transactions in the period in which the
transaction is executed. Interfund receivables in the Current Fund are recorded with
offsetting reserves which are created by charges to operations. Income is recognized
in the year the receivables are liquidated. Interfund receivables in the other funds are
not offset by reserves. GAAP does not require the establishment of an offsetting
reserve.

E. Inventories of Supplies

The costs of inventories of supplies for all funds are recorded as expenditures at the
time individual items are purchased. The costs of inventories are not included on the
various balance sheets.


F. General Fixed Assets

Property and equipment purchased by the Current and the General Capital Funds are
recorded as expenditures at the time of purchase and are not capitalized. Accounting
for Governmental Fixed Assets, as promulgated by Technical Accounting Directive No.
2 as issued by the Division of Local Government Services, differs in certain respects
from generally accepted accounting principles. The following is a brief description of
the provisions of the Directive. Fixed assets used in governmental operations (general
fixed assets) are accounted for in the General Fixed Assets Account Group. Public
domain ("infrastructure") general fixed assets consisting of certain improvements other
than buildings, such as roads, bridges, curbs and gutters, streets and sidewalks and
drainage systems are not capitalized. No depreciation on general fixed assets is
recorded in the financial statements. Expenditures for construction in progress are
recorded in the Capital Funds until such time as the construction is completed and put
into operation. Fixed assets acquired through grants-in-aid or contributed capital have
not been accounted for separately.




                                                                                           14
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

G. Foreclosed Property

Foreclosed property is recorded in the Current Fund at the assessed value when such
property was acquired and is fully reserved. Ordinarily it is the intention of the
municipality to resell foreclosed property in order to recover all or a portion of the
delinquent taxes or assessments and to return the property to a taxpaying basis. For
this reason the value of foreclosed property has not been included in the General
Fixed Asset Account Group. If such property is converted to a municipal use, it will be
capitalized in the General Fixed Asset Account Group. GAAP requires property to be
recorded in the General Fixed Asset Account Group at the market value at the time of
acquisition.

H. Deferred Charges

The recognition of certain expenditures is deferred to future periods. These
expenditures, or deferred charges, are generally overexpenditures of legally adopted
budget appropriations or emergency appropriations made in accordance with N.J.S.A.
40A:4-46 et al. Deferred charges are subsequently raised as items of appropriation in
                       years.
budgets of succeeding years

I. Appropriation Reserves

Appropriation reserves covering unexpended appropriation balances are automatically
created at year end and recorded as liabilities, except for amounts which may be
canceled by the governing body. Appropriation reserves are available, until lapsed at
the close of the succeeding year, to meet specific claims, commitments or contracts
incurred during the preceding fiscal year. Lapsed appropriation reserves are recorded
as income. Appropriation Reserves are not established under GAAP.


J. Liens Sold for Other Governmental Units

Liens sold on behalf of other governmental units are not recorded on the records of the
tax collector until such liens are collected. Upon their collection, such liens are
recorded as a liability due to the governmental unit net of the costs of the initial sale.
The related costs of sale are recognized as revenue when received.

K. Fund Balance

Fund Balances included in the current fund represent amounts available for
anticipation as revenue in future years budgets, with certain restrictions.




                                                                                             15
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

L. Revenues

Revenues are recorded when received in cash except for certain amounts which are
due from other governmental units. Revenue from Federal and State grants are
realized as and when anticipated as such in the Township's budget. Other amounts
that are due the Township which are susceptible to accrual are also recorded as
receivables with offsetting reserves and recorded as revenue when received. GAAP
generally requires that grant revenues be recognized when the actual expenditures
financed by the grant are made.


M. Property Tax Revenues

Property tax revenues are collected in quarterly installments due February 1, May 1,
August 1, and November 1. Property taxes unpaid on April 1 of the year following their
final due date are subject to tax sale in accordance with the statutes. The amount of
taxes levied includes not only the amount required in support of the Township's annual
budget, but also the amounts required in support of the budgets of the entities that
follow. Receivables for property taxes are recorded with offsetting reserves on the
balance sheet of the Township's Current Fund; accordingly, such amounts are not
recorded as revenue until collected. GAAP requires such revenue to be recognized
when available and measurable reduced by an allowance for doubtful accounts.

N. School Taxes

The municipality is responsible for levying, collecting and remitting school taxes for the
Local School District. Operations are charged for the full amount required to be raised
from taxation to operate the local school district for the period from July 1 to June 30.
GAAP would require the recording of a deferred revenue.

O. County Taxes

The municipality is responsible for levying, collecting and remitting county taxes for the
County. Operations are charged for the amount due the County for the year, based
upon the ratables required to be certified to the County Board of Taxation by January
10 of the current year. In addition, operations are charged for the County share of
Added and Omitted Taxes certified to the County Board of Taxation by October 10 of
the current year and due to be paid to the County by February 15 of the following year.




                                                                                             16
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

P. Reserve for Uncollected Taxes

The inclusion of the "Reserve for Uncollected Taxes" appropriation in the
municipalitie's annual budget protects from taxes not paid currently. The reserve, the
minimum amount of which is determined on the percentage of collections experienced
in the immediate preceding year, is required to provide assurance that cash collected
in the current year will provide sufficient cash flow to meet expected obligations. A
Reserve for Uncollected Taxes is not established under GAAP.

Q. Expenditures

Expenditures are recorded on the "budgetary" basis of accounting. Generally,
expenditures are recorded when an amount is encumbered for goods or services
through the issuance of a purchase order in conjunction with the encumbrance
accounting system. Outstanding encumbrances at June 30, are recorded as a cash
liability. Appropriations for principal payments on outstanding general capital bonds
and notes are provided on the cash basis; interest on general capital indebtedness is
on the cash basis. GAAP requires expenditures to be recognized in the accounting
                                        incurred,  measurable,
period in which the fund liability is incurred if measurable except for unmatured
interest on long term debt which is recognized when due.


R. Compensated Absences and Postemployment Benefits

Compensated absences for vacation, sick leave and other compensated absences are
recorded and provided for in the annual budget in the year in which they are paid, on a
pay-as-you-go basis. Likewise, no accrual is made for postemployment benefits, if
any, which are also funded on a pay-as-you-go basis. GAAP requires that the amount
that would normally be liquidated with expendable financial resources be recorded as
an expenditure in the operating funds and the remaining obligations be recorded as
long term obligations.

S. Total Columns on Combined Statements

Total columns are captioned "memorandum only" to indicate that they are presented
only to facilitate financial analysis. Data in these columns do not present financial
position, results of operations, or changes in financial position in conformity with
generally accepted accounting principles. Neither is such data comparable to a
consolidation. Interfund eliminations have not been made in the aggregation of this
data.




                                                                                          17
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 2 - Summary of Significant Accounting Policies (Continued)

T. Use of Estimates

The preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Accordingly, actual
results could differ from those estimates.

U. New Reporting Standard(s)

In June 1999, the Governmental Accounting Standards Board (GASB) issued
Statement 34 "Basic Financial Statements and Management's Discussion and Analysis
for State and Local Governments." This Statement establishes new financial reporting
requirements for state and local governmental units throughout the United States.
Implementation will require new information and restructuring of information presented
in past years, affecting comparability of annual reports. The Township will follow
direction from the Division of Local Government Services concerning implementation
dates, as they may not coincide with national requirements. The Township has not yet
determined the impact of adoption of this standard on the financial statements.

In July 2004, the Governmental Accounting Standards Board (GASB) adopted
statement number 45, "Accounting and Financial Reporting by Employers for Post
Employment Benefits Other than Pensions". This statement will become effective for
governmental entities on a phased in basis based on the entities total annual
revenues. This phase in began with fiscal years beginning after December 15, 2006
and continued thru December 15, 2008 depending on annual revenues. The Borough's
effective date is the year beginning January 1, 2009. This statement will require
Governmental entities to report the future cost of other post employment benefits
(OPEB) on a present value basis instead of the present "pay as you go" method. The
Township has not yet determined the impact of adoption of this standard on the
financial statements.




                                                                                             18
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 3 - Cash and Cash Equivalents

Change funds, petty cash, cash in banks, certificates of deposit and funds on deposit with the New Jersey
Cash Management Fund are considered cash and cash equivalents.

A. Deposits

New Jersey Statutes permit the deposit of public funds in institutions located in New Jersey which are
insured by the Federal Deposit Insurance Corporation (FDIC), or by any other agencies of the United
States that insures deposits, or the New Jersey Cash Management Fund.

All bank deposits as of the balance sheet date are entirely insured or collateralized by a collateral pool
maintained by public depositories as required by the Governmental Unit Deposit Protection Act. In
general, bank deposits are classified as to credit risk by the three categories described below:

Category 1 - Insured or collateralized with securities held by the municipality or by its agent in the
municipalitie's name.
Category 2 - Collateralized with securities held by the pledging public depository's trust department or
agent in the municipalitie's name.
Category 3 - Uncollateralized, including any deposits that is collateralized with securities held by the
pledging public depository, or by its trust department or agent but not in the municipalitie's name.

At December 31, the municipality's deposits categorized by level of risk are summarized as follows:



                     Bank                                 Category                          Carrying
      Year          Balance                1                 2                 3            Amount
      2008        $ 10,092,778      $   10,092,778    $              -   $            -   $  9,397,089
      2007        $    8,230,891    $    8,230,891    $              -   $            -   $    8,175,036
      2006        $   16,099,054    $   16,099,054    $              -   $           -    $   15,650,429
      2005        $    5,329,594    $    5,329,594    $              -   $           -    $    5,071,963
      2004        $    6,887,696    $    5,220,136    $              -   $   1,667,560    $    6,103,500

B. New Jersey Cash Management Fund

The State of New Jersey Cash Management Fund is managed by the State of New Jersey, Division of
Investment under the Department of Treasury. It consists of U.S. Treasury obligations, government
agency obligations, certificates of deposit and commercial paper.




                                                                                                             19
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 4 - Investments

New Jersey Statutes permit the municipality to purchase the following types of
securities for investment:

a. Bonds or other obligations of the United States or obligations guaranteed by the
United States of America.
b. Government Money Market Mutual Funds.
c. Any obligation that a federal agency or federal instrumentality has issued, which
security has a maturity date not greater than 397 days from the date of purchase,
provided that such obligation bears a fixed rate of interest.
d. Bonds or other obligations of municipalities or bonds or other obligations of school
districts.
e. Bonds or other obligations, having a maturity date of not more than 397 days from
the date of purchase that are approved by the New Jersey Department of Treasury,
Division of Investments.
f. Local government investment pools.
g. Agreement for the repurchase of fully collateralized securities, if transacted in
accordance with N.J.S.A. 40A:5-15.1(8a-8e).

                                        31 2008.
No investments were held as of December 31, 2008




                                                                                          20
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 5 - Receivables

New Jersey municipal accounting procedures require accrued receivables to be off-set with a
reserve originating with a charge to operations. Exceptions to this requirement include those
grants used to fund capital projects reflected in the General Capital Fund, amounts due from the
State of New Jersey for Veterans and Senior Citizens Deductions and public and private
programs qualifying for grant accounting treatment in the Federal and State Grant Fund.




                                                                                                   21
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 6 - Commitments

The municipality is entered into a number of operating leases which vary on cancellation
provisions and other terms. Annual requirements are provided for in appropriate department
budget appropriations. Complete lease information is on file and available with the municipality.




                                                                                                    22
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 7 - Fixed Assets

The following is a summary of general fixed asset additions, deletions and adjustments:

2008
                      Beginning                                                                       Ending
                       Balance          Additions           Deletions           Adjustments           Balance

Land              $     9,854,476   $               -   $               -   $                 -   $    9,854,476

Buildings and
Improvements            5,246,212                   -                   -                     -        5,246,212

Equipment               7,274,056                   -                   -                     -        7,274,056


Construction in
Progress                2,563,047                   -                   -                     -        2,563,047

                  $    24,937,791 $                 -   $               -   $                 -   $   24,937,791

2007
                      Beginning                                                                       Ending
                       Balance          Additions           Deletions           Adjustments           Balance

Land              $     9,854,476   $               -   $               -   $                 -   $    9,854,476

Buildings and
Improvements            5,246,212                   -                   -                     -        5,246,212

Equipment               7,274,056                   -                   -                     -        7,274,056


Construction in
Progress                2,563,047                   -                   -                     -        2,563,047

                  $    24,937,791 $                 -   $               -   $                 -   $   24,937,791




                                                                                                                   23
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt

A. Types of Municipal Debt

Capital Debt

The "Local Bond Law" of New Jersey Statutes governs the issuance of bonds and notes to finance
capital expenditures, and are permitted only from the General Capital Fund. Bonds and Notes are
backed by the full faith and credit of the municipality. Capital projects under financed under the Local
Bond Law must have a minimum useful life of five years.

Bond Anticipated Notes - Bond Anticipation Note ("BANs") are issued to temporarily finance projects
prior to the issuance of permanent bonds. Generally, the term of BANs can not exceed one year, but
may be renewed from time to time for periods not exceeding one year, and ultimately paid or
permanently financed no lated than the first day of the fifth month following the close of the tenth fiscal
year following the original issue date of the BAN. New Jersey Statutes require that on or before the
third anniversary date of the original BAN issue date, an amount at least equal to the first legally
payable installment must be paid towards the BAN upon each renewal until permanently funded or
retired.

Bonds - Bonds issued are retired in serial installments within statutory periods of usefulness. New
Jersey Statutes limit installment increments unless approval for a non-conforming maturity schedule is
approved by the Local Finance Board.




                                                                                                              24
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt (Continued)

B. Comparative Summary of Debt and Remaining Borrowing Power

The following comparative information summarizes the statutory debt calculations of the municipality
as reported on the municipality's Annual Debt Statement.


                                                                      2008                2007

Issued:
School Bonds and Notes                                                9,534,279      $    8,695,615
General Bonds and Notes                                              15,080,591          10,063,623
                                                                $    24,614,870      $   18,759,238

Authorized but not Issued:
General Bonds and Notes                                         $     2,027,500      $    5,377,744

Gross Debt                                                      $    26,642,370      $   24,136,982

Deductions                                                      $     9,613,820      $   15,605,938

Net Debt                                                        $    17,028,550      $    8,531,044


 q
Equalized Valuation Basis                                       $ 2,665,957,743      $ 2,540,298,167

Statutory Net Debt Percentage                                                0.64%               0.34%

3-1/2% of Equalized Valuation Basis                             $    93,308,521      $   88,910,436

Remaining Borrowing Power                                       $    76,279,971      $   80,379,392




                                                                                                         25
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt (Continued)

C. Long-Term Bonded Debt Service Requirements to Maturity

The annual debt service requirement for long-term obligations requirements to maturity, including
principal and interest as of December 31, 2008 are as follows:


Loans and General Bonds
                                        10/01/02                             12/01/06 - A
                              General Improvement Bonds              General Improvement Bonds
     Calendar Year            Principal          Interest            Principal           Interest
         2009             $        450,000 $         106,558     $         60,000 $           29,668
         2010                      450,000             91,708              60,000             26,135
         2011                      575,000             76,858              65,000             24,489
         2012                      580,000             57,882              65,000             21,523
         2013                      590,000             38,742              70,000             19,063
         2014                      584,000             19,272              70,000             16,048
         2015                             -                 -              75,000             13,579
         2016                             -                 -              75,000               9,774
         2017                             -                 -              80,000             17,840
         2018                             -                 -              85,000             14,640
         2019                             -                 -              90,000             11,240
         2020                             -                 -              95,000               7,640
         2021                             -                 -              96,000               3,840
                          $      3,229,000 $         391,020     $        986,000 $          215,479


                                                                               12/01/98
                                  1993 N.J.D.E.P. Loan               General Improvement Bonds
     Calendar Year            Principal           Interest           Principal          Interest
         2009             $         20,358 $               932   $        250,000 $          20,170
         2010                       20,768                 523            248,000            10,044
         2011                       10,540                 106                   -                -
                          $         51,666 $             1,561   $        498,000 $          30,214


                                      12/01/06 - C
                              General Improvement Bonds                         Total
     Calendar Year            Principal           Interest           Principal           Interest
         2009                      130,000              72,932   $        910,358 $          230,260
         2010                      140,000              66,108            918,768            194,518
         2011                      150,000              58,687            800,540            160,140
         2012                      160,000              50,738            805,000            130,143
         2013                      170,000              42,137            830,000             99,942
         2014                      185,000              33,000            839,000             68,320
         2015                      200,000              22,825            275,000             36,404
         2016                      215,000              11,825            290,000             21,599
         2017                             -                  -             80,000             17,840
         2018                             -                  -             85,000             14,640
         2019                             -                  -             90,000             11,240
         2020                             -                  -             95,000               7,640
         2021                             -                  -             96,000               3,840
                          $      1,350,000 $          358,252    $      6,114,666 $          996,526



                                                                                                        26
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt (Continued)

C. Long-Term Bonded Debt Service Requirements to Maturity (Continued)

Water Utility Bonds
                                       12/01/98                              12/01/02
                             General Improvement Bonds             General Improvement Bonds
     Calendar Year           Principal          Interest           Principal          Interest
         2009            $        180,000 $           14,378   $        115,000 $          51,216
         2010                     175,000              7,088            130,000            47,422
         2011                            -                 -            315,000            43,132
         2012                            -                 -            325,000            32,736
         2013                            -                 -            330,000            22,012
         2014                            -                 -            337,000            11,122
         2015                            -                 -                   -                -
         2016                            -                 -                   -                -
                         $        355,000 $           21,466   $      1,552,000 $         207,640


                                       12/01/06
                             General Improvement Bonds                        Total
     Calendar Year           Principal          Interest           Principal          Interest
         2009            $         80,000 $           39,327   $        375,000 $         104,921
         2010                      85,000             37,610            390,000            92,120
         2011                      90,000             33,818            405,000            76,950
         2012                      95,000
                                   95 000             30,972
                                                      30 972            420,000
                                                                        420 000            63 708
                                                                                           63,708
         2013                     100,000             27,432            430,000            49,444
         2014                     105,000             24,072            442,000            35,194
         2015                     110,000             19,541            110,000            19,541
         2016                     122,000             15,947            122,000            15,947
                         $        787,000 $         228,719    $      2,694,000 $         457,825




                                                                                                    27
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt (Continued)

D. Summary of Changes in Municipal Debt

During the fiscal year ended December 31, 2008, the following changes occurred in liabilities reported
as general long-term debt:


Loans and General Bonds
                               Beginning                                                    Ending
                                Balance             Issued               Retired            Balance

Short-Term Debt:
 Tax Anticipation Notes    $               -   $                -   $               -   $             -
 Emergency Notes                           -                    -                   -                 -
                           $               -   $                -   $               -   $             -

Long-Term Debt:
 Serial Bonds            $        6,938,000    $              -     $       (875,000) $      6,063,000
 Loan Payable                        71,623                   -              (19,957)           51,666
 Bond Anticipation Notes                  -           6,271,925                    -         6,271,925
 Authorized but not
 Issued                           1,521,421           6,112,695           (6,460,867)        1,173,249
                         $        8,531,044    $     12,384,620     $     (7,355,824) $     13,559,840

                           $      8,531,044    $     12,384,620     $     (7,355,824) $     13,559,840


                                                   Amounts
                               Ending              Due within           Long-term
                               Balance             One Year               Portion

Short-Term Debt:
 Tax Anticipation Notes    $               -                        $               -
 Emergency Notes                           -                                        -
                           $               -   $                -   $               -

Long-Term Debt:
 Serial Bonds            $        6,063,000    $        890,000     $      5,173,000
 Loan Payable                        51,666              20,358               31,308
 Bond Anticipation Notes          6,271,925                   -            6,271,925
 Authorized but not
 Issued                          1,173,249                    -            1,173,249
                         $      13,559,840     $        910,358     $     12,649,482

                           $    13,559,840     $        910,358     $     12,649,482




                                                                                                          28
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 8 - Municipal Debt (Continued)

D. Summary of Changes in Municipal Debt (Continued)

Water Utility Bonds
                              Beginning                                                    Ending
                               Balance             Issued               Retired            Balance

Short-Term Debt:
 Tax Anticipation Notes   $               -   $                -   $               -   $             -
 Emergency Notes                          -                    -                   -                 -
                          $               -   $                -   $               -   $             -

Long-Term Debt:
 Serial Bonds            $      3,054,000     $                -   $       (360,000) $      2,694,000
 Loan Payable                           -                      -                  -                 -
 Bond Anticipation Notes                -                      -                  -                 -
 Authorized but not
 Issued                         3,856,323              570,000                    -         4,426,323
                         $      6,910,323     $        570,000     $       (360,000) $      7,120,323

                          $     6,910,323     $        570,000     $       (360,000) $      7,120,323



                                                  Amounts
                              Ending              Due within           Long-term
                              Balance             One Year               Portion

Short-Term Debt:
 Tax Anticipation Notes   $               -                        $               -
 Emergency Notes                          -                                        -
                          $               -   $                -   $               -

Long-Term Debt:
 Serial Bonds            $      2,694,000     $        375,000     $      2,319,000
 Loan Payable                           -                    -                    -
 Bond Anticipation Notes                -                    -                    -
 Authorized but not
 Issued                         4,426,323                    -            4,426,323
                         $      7,120,323     $        375,000     $      6,745,323

                          $     7,120,323     $        375,000     $      6,745,323




                                                                                                         29
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 9 - Risk Management

The Borough is exposed to various risks of loss related to general liability, automobile
coverage, damage and destruction of assets; errors and omissions; injuries to
employees; and natural disasters. The Borough has obtained insurance coverage to
guard against these events which will provide minimum exposure to the Borough
should they occur. The Borough of South Hackensack is a member of the Bergen
County Municipal Joint Insurance Fund (BJIF) and Municipal Excess Liability Joint
Insurance Fund (MEL). The joint insurance funds are both an insured and self-
administered group of municipalities established for the purpose of insuring against
property damage, general liability, motor vehicles and equipment and worker's
compensation. The BJIF and MEL coverage amounts are on file with the Borough.
The relationship between the Borough and respective insurance funds is governed by
a contract and by-laws that have been adopted by resolution of each unit's governing
body. The Borough is contractually obligated to make all annual and supplementary
contributions to insurance, to report claims on a timely basis, cooperate with the
management of the Fund, its claims investigation and settlement, and to follow risk
management procedures as outlined by the insurance pools. Members have a
contractual obligation to fund any deficit of the insurance fund attributable to a
membership year during which the municipality was a member. The funds provide its
                                  services,
members with risk management services including the defense of and settlement of
claims, and established reasonable and necessary loss reduction and preventive
procedures to be followed by the members. There has been no significant reduction in
insurance coverage from the previous year nor have been there been any settlements
in excess of insurance coverage in any of the prior three years. Contributions to the
Funds, including a reserve for contingencies, are payable in four installments and are
based on actuarial assumptions determined by the Fund's actuary. The Commissioner
of Insurance may order additional assessments to supplement the Fund's claim, loss
retention or administrative accounts to assure the payment of the Fund's obligations.


The Borough has elected to fund its New Jersey Unemployment Compensation
Insurance under the "Benefit Reimbursement Method". Under this plan the State of
New Jersey provides the administration of payments to former employees of the
Borough. The Borough is billed quarterly for benefits paid to former employees.




                                                                                           30
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 10 - Interfunds

As of December 31, interfund balances on the Borough's various balance sheets were as
follows:
                                                          Interfunds        Interfunds
                                                          Receivable         Payable

2008

Current Fund                                          $       220,304   $       253,740
Federal and State Grant Fund                                    4,650                 -
Trust Fund                                                    394,223           221,461
General Capital Fund                                          205,000           292,338
Water Utility Operating Fund                                   60,118            58,339
Water Utility Capital Fund                                          -            60,118
Sewer Utility Operating Fund                                   29,898            28,197
Sewer Assessment Trust Fund                                         -                 -

                                                      $       914,193   $       914,193
                                                                                      -
2007

Current Fund                                          $     1,050,660   $     2,474,848
Federal and State Grant Fund                                        -                 -
Trust Fund                                                  1,697,707            44,270
General Capital Fund                                                -           976,247
Water Utility Operating Fund                                  245,209           284,995
Water Utility Capital Fund                                    917,895           178,373
Sewer Utility Operating Fund                                   62,670            15,408
Sewer Assessment Trust Fund                                         -                 -

                                                      $     3,974,141   $     3,974,141




                                                                                          31
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 11 - Deferred Charges to be Raised in Succeeding Budgets

Certain expenditures are required to be deferred to budgets of succeeding years. At
December 31, the following deferred charges are shown on the balance sheet of the Current
Fund:
                                                         Appropriated in
                                          Balance         Subsequent           Balance to
                                        December 31,     Year's Budget         Succeeding

2008

Current Fund:
 Overexpenditures                       $       28,602   $       28,602    $                -
 Expenditures Without Appropriations                 -                -                     -
 Deficit in Operations                               -                -                     -
 Emergency Authorizations                            -                -                     -
 Special Emergency
 Authorizations (40A:4-55)                      78,000           46,000             32,000

                                        $      106,602   $       74,602    $        32,000

2007

Current Fund:
 Overexpenditures                       $       19,197   $       19,197    $                -
 Expenditures Without Appropriations             1,971            1,971                     -
 Deficit in Operations                               -                -                     -
 Emergency Authorizations                            -                -                     -
 Special Emergency
 Authorizations (40A:4-55)                     224,000          146,000             78,000

                                        $      245,168   $      167,168    $        78,000




                                                                                                32
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans

Those employees who are eligible for pension coverage are enrolled in either the Public Employees
Retirement System of New Jersey (PERS) or the Police and Firemans' Retirement System of New Jersey
(PFRS) and the Defined Contribution Retirement Program (DCRP). The systems are cost-sharing
multiple-employer contributory defined benefit pension plans, and are component units of the State of
New Jersey. Each retirement system has a Board of Trustees which is responsible for its organization
and administration.

A. Public Employees' Retirement System (PERS)

Description of the System - The State of New Jersey Public Employees’ Retirement System (the System;
PERS) is a cost-sharing multipleemployer contributory defined benefit plan which was established as of
January 1, 1955, under the provisions of N.J.S.A. 43:15A. The System is included along with other state-
administered pension trust and agency funds in the basic financial statements of the State of New Jersey.

At June 30, 2007 and 2006, the dates of the most recent actuarial valuations, participating employers
consisted of the following:


                                                          2007              2006
                State of New Jersey                                1                 1
                County Agencies                                   65                66
                Municipalities                                   580               576
                School Districts                                 558               588
                Other Public Agencies                            487               446
                Total                                           ,
                                                               1,691              ,
                                                                                 1,677

The System’s designated purpose is to provide retirement, death, disability and medical benefits to
certain qualified members. Membership in the System is mandatory for substantially all full-time
employees of the State of New Jersey 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 pension fund or local jurisdiction’s pension fund. The System’s Board of Trustees is primarily
responsible for the administration of the System.

According to the State of New Jersey Administrative Code, all obligations of the System will be assumed
by the State of New Jersey should the System terminate.

The system adopted Governmental Accounting Standards Board (GASB) Statement No. 43, "Financial
Reporting for Postemployment Benefit Plans Other than Pension Plans " (OPEB) as of July 1, 2006. Prior
to the adoption, the Post-Retirement Medical Fund (PRM) of PERS was reported as a trust fund and was
combined with the PERS pension trust fund plan. As a result of the implementation of GASB Statement
No. 43, PRM of PERS is combined with the State Health Benefits Program Fund (SHBP) and the
Prescription Drug Program Fund (PDP) and reported as Health Benefit Program Funds. Specifically,
SHBP-State, PDP-State, and PRM of PERS are combined and reported as a trust fund classified as a
single employer plan. Certain amounts included in the PERS PRM are legally required to be transferred
to the SHBP and are recorded as additions and deductions in PERS PRM and SHBP. All interfund
transactions have been eliminated in the financial statements of the SHBP.

In 2008, the System adopted the provisions of GASB Statement No. 50, "Pension Disclosures ."




                                                                                                             33
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

A. Public Employees' Retirement System (PERS) (Continued)

Vesting and Benefit Provisions - The vesting and benefit provisions are set by N.J.S.A. 43:15A and
43:3B. The PERS provides retirement, death and disability benefits, as well as medical benefits for
certain qualified members. All benefits vest after eight to ten years of service, except for medical benefits,
which vest after 25 years of service or under the disability provisions of the System. Retirement benefits
for age and service are available at age 60 and are generally determined to be 1/55 of final average
salary for each year of service credit (as defined). Final average salary equals the average salary for the
final three years of service prior to retirement (or highest three years’ compensation if other than the final
three years). Members may seek early retirement after achieving 25 years service credit, as defined, or
they may elect deferred retirement after achieving eight to ten years of service credit, in which case
benefits would begin the first day of the month after the member attains normal retirement age.

Members are always fully vested for their own contributions and, after three years of service credit,
become vested for earnings on their contributions at 2% per annum. In the case of death before
retirement, members’ beneficiaries are entitled to full interest credited to the members’ accounts.

Eligible retirees receiving monthly benefits are entitled to cost-of-living increases equal to 60% of the
change in the average consumer price index for the calendar year in which the pensioner retired as
compared to the average consumer price index for a 12-month period ending with each August 31st
immediately preceding the year in which the adjustment becomes payable. The regular retirement
allowance is multiplied by the 60% factor as developed and results in a dollar amount of the adjustment
payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement.



Chapter 353, P.L. 2001 provided an increase in the special veterans’ retirement allowance and the
ordinary and accidental disability retirement allowances. The special veterans retirement allowance
increased from 50% to 54.5% of the members’ compensation during the highest-paid year of service. The
minimum ordinary disability retirement allowance increased from 40% to 43.6% of final average
compensation, and the accidental disability retirement allowance increased from 66.66% to 72.7% of the
actual annual compensation at the time of the accident. Existing retirees and beneficiaries are eligible for
the increases, which was effective October 2001.

Chapter 133, P.L. 2001 increased the retirement benefits under service, deferred, and early retirement by
changing the formula from 1/60 to 1/55 of final compensation for each year of service. This legislation
also increased the retirement benefit for veteran members with 35 or more years of service and reduced
the age qualification from 60 to 55. Existing retirees and beneficiaries received a comparable percentage
increase in their retirement allowances. This benefit enhancement was effective with the November 1,
2001 benefit payments.

Chapter 103, P.L. 2007 amended the early retirement reduction formula for members hired on or after
July 1, 2007 and retiring with 25 years of service to be reduced by 1 percent for every year under age 60
to age 55 plus 3 percent for every year under age 55.

Chapter 103, P.L. 2007, certain parts effective July 1, 2007, provides for the following: changes
contribution rates of PERS to 5.5% of annual compensation; imposes an annual maximum wage
contribution base; and amended the early retirement reduction formula for the new members. If a person
became a member on or after July 1, 2007, that person must be at least 60 years of age in order to retire
without a reduction in their retirement allowance. The legislation also eliminated the funding for the
postretirement medical benefits through the PERS.




                                                                                                                 34
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

A. Public Employees' Retirement System (PERS) (Continued)


Chapter 92, P.L. 2007 implements certain recommendations contained in the December 1, 2006 report of
the Joint Legislative Committee on Public Employee Benefits Reform. Effective July 1, 2007, the
legislation closed the Workers' Compensation Judges Part of the PERS to new members. Effective
January 1, 2008, the new pension loan interest rate became 4.69% per year, and an $8.00 processing
fee per loan was charged. The legislation also removed language from existing law that permits the State
Treasurer to reduce employer pension contributions needed to fund the system when excess assets are
available.

Chapter 21, P.L. 2008, effective June 24, 2008, provided early retirement incentive program to eligible
State employees in the Executive Branch of State government and eligible Judiciary employees in the
Judicial Branch of State government who apply to retire on or after March 1, 2008 but by July 15, 2008
and retire by August 1, 2008.

Membership in the system consisted of the following at June 30, 2007 and 2006, the dates of the most
recent actuarial valuations:



                                                                           2007              2006
Retirees and beneficiaries currently receiving
  benefits and terminated employees entitled to benefits
  but not yet receiving them                                                 130,686           126,592
Active Members:
  Vested                                                                     140,400           140,306
  Non-Vested                                                                 178,853           177,434
     Total Active Members                                                    319,253           317,740
     Total                                                                   449,939           444,332




                                                                                                           35
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

B. Police and Firemen's Retirement System (PFRS)

Description of the System

State of New Jersey Police and Firemen’s Retirement System (the System; PFRS) is a cost-sharing
multipleemployer contributory defined benefit plan which was established as of July 1, 1944, under the
provisions of N.J.S.A. 43:16A. The System is included along with other state-administered pension trust
and agency funds in the basic financial statements of the State of New Jersey.

At June 30, 2007 and 2006, the dates of the most recent actuarial valuations, participating employers
consisted of the following:

                                                                            2007              2006
State of New Jersey                                                                  1                    1
Municipalities                                                                     582                  587
Total                                                                              583                  588

The System’s designated purpose is to provide retirement, death and disability benefits to its members.
Membership in the System is mandatory for substantially all full-time county and municipal police or
firemen, and state firemen or officer employees with police powers appointed after June 30, 1944. The
System’s Board of Trustees is primarily responsible for its administration.

According to State of New Jersey Administrative Code, all obligations of the System will be assumed by
the State of New Jersey should the System terminate.

   2008,
In 2008 the System adopted the provisions of Governmental Accounting Standards Board (GASB)
Statement No. 50, "Pension Disclosures ."




                                                                                                              36
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

B. Police and Firemen's Retirement System (PFRS) (Continued)

Vesting and Benefit Provisions

The vesting and benefit provisions are set by N.J.S.A. 43:16A and 43:3B. The System provides
retirement as well as death and disability benefits. All benefits vest after ten years of service except
disability benefits which vest after four years of service. Retirement benefits for age and service are
available at age 55 and are generally determined to be 2% of final compensation for each year of
creditable service, as defined, up to 30 years plus 1% for each year of service in excess of 30 years.
Final compensation equals the compensation for the final year of service prior to retirement. Members
may seek special retirement after achieving 25 years of creditable service or they may elect deferred
retirement after achieving ten years of service, in which case benefits would begin at age 55 equal to 2%
of final compensation for each year of service. The annual benefit under special retirement is 65% of the
member’s final compensation plus 1% for each year of creditable service over 25 years but not to exceed
30 years. The maximum allowance is therefore 70 percent of final compensation.

Widow/widowers of members retired since December 18, 1967 receive 50% of the retiree’s final
compensation. The minimum annual widow/widower’s benefits of an accidental disability retiree prior to
December 18, 1967 and of all retirees since December 18, 1967 is $4,500.

Members are always fully vested for their own contributions. In the case of death before retirement,
members’ beneficiaries are entitled to full payment of members’ contributions providing no survivor death
benefits are payable.


Eligible retirees receiving monthly benefits are entitled to cost-of-living increases equal to 60% of the
change in the average consumer price index for the calendar year in which the pensioner retired as
compared to the average consumer price index for a 12-month period ending with each August 31st
immediately preceding the year in which the adjustment becomes payable. The regular retirement
allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjustment
payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement.
The cost-of-living increases are funded by the retirement system and are included in the annual actuarial
calculations of the required state and state-related employer contributions.

Chapter 130, P.L. 2003 provided early retirement incentive benefits to local employees.

Chapter 4, P.L. 2001 provided increased benefits to certain members who retired prior to December 29,
1989 with at least 25 years of creditable service. The maximum amount of the increase was 5% of the
retiree’s final compensation. For those with 30 or more years of service, the total pension benefit would
increase from 65% to 70% of final compensation.




                                                                                                            37
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

B. Police and Firemen's Retirement System (PFRS) (Continued)

Significant Legislation:

Chapter 92, P.L. 2007 implements certain recommendations contained in the December 1, 2006 report of
the Joint Legislative Committee on Public Employee Benefits Reform. Effective January 1, 2008, the new
pension loan interest rate became 4.69% per year, and an $8.00 processing fee per loan was charged.
The legislation also removed language from existing law that permits the State Treasurer to reduce
employer pension contributions needed to fund the system when excess assets are available.

Membership in the System consisted of the following at June 30, 2007 and 2006, the dates of the most
recent actuarial valuations:


                                                                          2007             2006

Retirees and beneficiaries currently receiving
  benefits and employees entitled to benefits
  but not yet receiving them                                                 31,837           30,487

Active members:
  Vested                                                                     28,668           28,236
  Non-vested                                                                 16,463           16,589
Total active members                                                         45,131           44,825

Total                                                                        76,968           75,312




                                                                                                         38
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

C. Defined Contribution Retirement Program (DCRP)

The Defined Contribution Retirement Program (DCRP) was established July 1, 2007, under the
provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007, and expanded under the provisions of
Chapter 89, P.L. 2008.

The DCRP provides eligible members with a tax-sheltered, defined contribution retirement benefit, along
with life insurance and disability coverage.

Eligibility

Individuals eligible for membership in the DCRP include:
1) State or local officials who are elected or appointed on or after July 1, 2007
2) Employees enrolled in the Public Employees Retirement System (PERS) or Teachers Pension and
Annuity Fund (TPAF) on or after July 1, 2007, who earn salary in excess of established “maximum
compensation” limits; and
3) Employees otherwise eligible to enroll in the PERS or TPAF on or after November 2, 2008, who do not
earn the minimum annual salary for PERS or TPAF Membership Tier 3 enrollment ($7,500 in 2009,
subject to adjustment in future years) but who earn salary of at least $1,500 annually.)


Employees enrolled in the PERS or TPAF on or after July 1, 2007 are subject to a maximum
compensation limit for PERS and TPAF pension contributions. The maximum compensation is based on
the annual maximum wage for Social Security (see chart below) and is subject to change at the start of
each calendar year.

Enrollment

Eligible PERS or TPAF members are enrolled in the DCRP when the annual salary exceeds the
maximum compensation limit. This may occur either:

Upon enrollment into the PERS or TPAF when an annual base salary is reported on the Enrollment
Application that will exceed the maximum compensation; or when a PERS or TPAF member’s annual
salary is increased to where it will exceed the maximum compensation and it is reported by the employer
to the Division of Pensions and Benefits (either by directly contacting the Division, or when submitted by
the employer on the Quarterly Report of Contributions). When enrolled in the DCRP, members contribute
5.5% of the base salary in excess of the maximum compensation limit to a tax-deferred investment
account established with Prudential Financial, which jointly administers the DCRP investments with the
Division of Pensions and Benefits. Member contributions are matched by a 3% employer contribution
based on the salary in excess of the maximum compensation limit.

It is important that an employer enroll a DCRP eligible PERS or TPAF member as soon as it is known that
the employee’s annual salary will exceed the maximum compensation, so that the DCRP account can be
established in advance of collection of any required contributions.




                                                                                                             39
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

C. Defined Contribution Retirement Program (DCRP)

Retirement

Six months before retirement, a member should contact the employer and Prudential Financial for
information regarding DCRP benefits and options.

A DCRP member may elect to receive all or a portion of his/her account in a lump-sum distribution, or in a
variety of periodic payment methods. Please contact your administrative services provider for more
information. All returns of contributions and earnings are considered taxable in the year they are received;
therefore, the type of payout plan should be considered carefully prior to retirement.

There is no minimum retirement age under the DCRP. The member will automatically be considered
retired, regardless of age, if there is any distribution of mandatory contributions.

A member may take a distribution at any time after termination of employment; however, if you return to
public employment in New Jersey, you cannot participate in any State-administered retirement system.




                                                                                                               40
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

D. Contributions Required by Employer

                                     Pension        Percentage        Pension
                     Year             Cost          Contributed      Obligation

Police and Firemens' Retirement System
                      2008        $    610,668           100.00% $       610,668
                      2007        $    395,031            80.00% $       493,789

Public Employees Retirement System
                     2008        $        199,093         80.00% $       248,866
                     2007        $        103,389         60.00% $       172,315

Defined Contribution Retirement Program
                      2008        $             -        100.00% $                -
                      2007        $             -        100.00% $                -




                                                                                      41
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 12 - Retirement Plans (Continued)

E. Trend Information

Historical trend information showing the plan's progress in accumulating sufficient assets to pay benefits
when due are presented in the State of New Jersey's PERS, PFRS and DCRP financial reports. Those
reports may be obtained by writing to the State of New Jersey, Department of Treasury Division of
Pensions, Trenton, New Jersey.




                                                                                                             42
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 13 - Deferred Compensation Plan

A. Description

The Borough offers its qualifying volunteers participation in a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, which is administered by an outside contractor,
permits participants to defer a portion of their Borough contributions on behalf of volunteers until future years.
Amounts deferred under the plan are not available to employees until termination, retirement, death or
unforeseeable emergency.

All amounts of compensation deferred under the plan and all income attributable to those amounts are (until
paid or made available to the employee or other beneficiary) solely the property and rights of the Borough's
subject only to the claims of the Borough's general creditors. Participants' rights under the plan are equal to
those of general creditors of the Borough in an equal amount to the fair value of the deferred account for each
participant.

It is the opinion of the Borough's legal counsel that the Borough has no liability for losses under the plan. Under
the plan, participants select investments from alternatives offered by the plan administrators, who manages the
plan on behalf of the Borough. Investment selection by the participants may change from time to time, as the
Borough manages none of the investment selections. By making the selection, participants accept and assume
all risks that adhere in the plan and its administration.



Information pertaining to the plan offered by the Borough is as follows:

Lincoln National Life Insurance Co.


This plan administers Borough contributions towards its Volunteer Length of Service Award Program (LOSAP).


                                                                                                       2008
Assets, Beginning of Year (Market Value)                                                          $       398,746
Municipal Contribution                                                                                     72,025
Earnings and Adjustments to Market Value                                                                 (136,976)
Payments to Eligible Employees                                                                             (2,983)
Charges and Credits                                                                                        (2,261)
Assets, Ending of Year (Market Value)                                                             $       328,551




                                                                                                               43
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 14 - Other Post Retirement Benefits

A. Compensated Absences (Unaudited)

The Borough has permitted certain employees and bargaining units to accumulate
(with certain restrictions) unused vacation benefits, personal leave and sick pay which
may be taken in cash (with certain limitations), upon death, retirement or by extended
time off immediately preceding retirement. A detail of amounts due is on file in the
Office of the Borough Clerk - Municipal Plaza, Oakland, NJ 07436 - (201) 337-8111.
In accordance with accounting practices prescribed by the Division of Local
Government Services, this amount is not recorded as either an expenditure or a
liability. The Borough approximates this liability at December 31, 2008 to be $500,000.




                                                                                          44
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 15 - Contingencies

A. Litigation

The Borough is a party to various legal proceedings which normally occur in the operation
of government. These proceedings are not likely to have a materially adverse affect on
the various funds of the Borough.

B. Tax Appeals

Various tax appeal cases were pending in the New Jersey Tax Court at December 31,
2008 and 2007. Amounts claimed have not yet been determined. The Borough is
vigorously defending its assessments in each case. Under the accounting principles
prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey, the Borough does not recognize a liability, if any, until these
cases have been adjudicated. The Borough expects such amounts, if any, to be material.
As of December 31, 2008 and 2007, the Borough did not record reserves in the Current
Fund for tax appeals pending in the New Jersey Tax Court. Funding of any ultimate liability
would be provided for in succeeding years' budgets, from fund balance or by issuance of
refunding bonds.

C. Federal and State Grants

The Borough participates in a number of federal and state programs that are fully or
partially funded by grants received from other governmental units. Expenditures financed
by grants are subject to audit by the appropriate grantor agency. If expenditures are
disallowed, the Borough may be required to reimburse the grantor agency. As of
December 31, 2008, significant amounts of grant expenditures have not been audited.
The Borough believes that any future disallowed expenditures will not have a material
effect on its financial position.




                                                                                                45
BOROUGH OF OAKLAND
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2008




Note 16 - Subsequent Events

As of the date of this report, the following are considered material subsequent events:

A. Subsequent Year Capital Projects

The Borough's 2009 Capital Budget currently includes the following:

                                                                           CIF and
                                                                         Other Funded     Bonds & Notes
                      Purpose                              Total           Sources          Authorized

As of the date of this report, the Borough has not authorized any capital projects.



B. Bond Anticipation Notes

On February 11, 2009 the Borough issued Bond Anticipation Notes in the amount of $6,226,925 to
temporarily finance expenditures related to various capital projects. The Borough has awarded the sale
of said notes to Sovereign Securities at a gross interest rate of 2.00% receiving a premium of $26,340
producing an effective interest rate of 1.577%. These notes will mature on February 11, 2010.




                                                                                                          46
                                                                                                                   B-1


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                                                          2008           2007           2006
ASSETS AND OTHER DEBITS

Cash:
 Current Account                                                      $ 3,036,012    $ 4,308,244    $ 8,465,781
 Current Account                                                               34             34             33
 Current Account                                                           12,558         12,905          1,800
 N.J. Cash Management Account                                             309,516        302,030        287,140
 Petty Cash Funds                                                             147            147            147
 Change Funds                                                                 275            275            275
                                                                      $ 3,358,542    $ 4,623,635    $ 8,755,176

Interfunds Receivable:
  Animal Control Trust Fund                                           $          -   $     8,717    $     8,717
  Trust & Escrow Deposit Fund                                               4,293         35,036          4,293
  Net Payroll Trust Fund                                                         -            23               -
  Payroll Agency Trust Fund                                                      -           116               -
  Lien Redemption Trust Fund                                                   20               -              -
  Unemployment Trust Fund                                                        -             8               -
  COAH Trust Fund                                                           3,881               -              -
  Federal/State Grant Fund                                                       -              -              -
  Open Space Trust Fund                                                     3,247               -              -
  General Capital Fund                                                    167,338        851,247               -
  Water Utility Operating Fund                                             28,328        154,473        104,410
  Water Capital Fund                                                             -           632               -
  Sewer Utility Operating Fund                                             13,197            408         20,000
                                                                      $   220,304    $ 1,050,660    $   137,420

Intergovernmental Receivable:
  State of N.J. for Vets and Senior Citizen Deductions                $          -   $          -   $          -

Other Receivables:
 Delinquent Property Taxes Receivable                                 $   393,549    $   370,101    $   438,341
 Tax Title Liens Receivable                                                81,584         69,381         69,381
 Property Acquired for Taxes - Assessed Valuation                       1,054,950      1,054,950      1,054,950
 Due From Bank of America                                                     477               -              -
 Revenue Accounts Receivable                                                     -              -              -
 Other Accounts Receivable                                                       -              -              -
 Prepaid Regional High School Tax                                                -              -              -
                                                                      $ 1,530,560    $ 1,494,432    $ 1,562,672

Deferred Charges:
 Overexpenditures                                                     $    28,602    $    19,197    $    39,429
 Expenditures Without Appropriations                                             -         1,971          3,732
 Operating Deficit                                                               -              -              -
 Emergency Authorizations (40A:4-55)                                             -              -              -
 Special Emergency Authorizations (40A:4-53)                               78,000        224,000        370,000
                                                                      $   106,602    $   245,168    $   413,161

Total Assets and Other Debits                                         $ 5,216,008    $ 7,413,895    $ 10,868,429

LIABILITIES, RESERVES AND FUND BALANCE

Interfunds Payable:
  Trust & Escrow Deposit Fund                                         $        50    $   926,859    $ 1,976,859
  Municipal Open Space Trust Fund                                         253,681        622,701        622,700
  Health Benefits Trust Fund                                                     -           810            810
  SUI Trust Fund                                                                9          6,855               -
  General Capital Fund                                                           -              -       104,763
  Water Utility Operating Fund                                                   -        67,468         41,305
  Water Capital Fund                                                             -       800,000               -
  Sewer Utility Operating Fund                                                   -        50,155         20,012
  Length of Service Award Program                                                -              -              -
                                                                      $   253,740    $ 2,474,848    $ 2,766,449

Accounts Payable                                                      $    70,253    $   115,656    $          -

Other Liabilities and Reserves:
 Appropriation Reserves                                               $ 1,180,216    $ 1,109,232    $ 1,626,112
 Reserve for Encumbrances                                                 380,231        139,841        199,607
 Reserve for Petty Cash Expenditures                                          147            147            147
 Reserve for Tax Appeals                                                         -              -              -
 Reserve for State Building Fees                                                 -              -              -
 Reserve for Sale of Land                                                        -              -              -
 Pre-Paid Taxes                                                           142,671        142,968        139,458
 Local District School Taxes Payable                                             -       180,636               -
 Prepaid Revenue                                                                 -              -              -
 Special Emergency Notes Payable                                                 -              -              -
 Tax Overpayments                                                          45,310               -              -
 Tax Anticipation Notes Payable                                                  -              -     3,800,000
                                                                      $ 1,748,575    $ 1,572,824    $ 5,765,324

Intergovernmental Payable
  Due County for Added & Omitted Taxes                                $     8,671    $    13,134    $    12,731
  Due to State of New Jersey                                                1,375          1,517          4,816
                                                                      $    10,046    $    14,651    $    17,547

Reserve for Receivables and Other Assets                              $ 1,750,864    $ 2,545,092    $ 1,700,092

Fund Balance                                                          $ 1,382,530    $   690,824    $   619,017

Total Liabilities, Reserves and Fund Balance                          $ 5,216,008    $ 7,413,895    $ 10,868,429


                                                                                                                   47
                                                                                                          B-2

BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF REVENUES AND OTHER CREDITS TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                         Budget                           Excess/
                                                       As Modified        Realized        (Deficit)
REVENUES

Fund Balance Anticipated                               $   445,000    $     445,000   $               -

Miscellaneous Revenues:
 Alcoholic Beverage Licenses                           $    24,000    $    24,450     $         450
 Other Licenses                                             15,000         28,476            13,476
 Fees and Permits                                          800,000        502,074          (297,926)
 Municipal Court Fines and Costs                           180,000        210,914            30,914
 Interest and Costs on Taxes                               100,000        114,734            14,734
 Interest on Investments and Deposits                      400,000        119,366          (280,634)
 Anticipated Utility Operating Surplus                      25,000         25,000                 -
 Consolidated Municipal Property Tax Relief                323,796        329,232             5,436
 Legislative Initiative Municipal Block Grant                    -              -                 -
 Energy Receipts Tax                                     1,362,552      1,362,552                 -
 Supplemental Energy Receipts Tax                                -              -                 -
 Garden State Trust Fund                                     1,663          1,663                 -
 Municipal Homeland Security Assistance                     70,000         70,000                 -
 Municipal Property Tax Assistance                               -              -                 -
 Uniform Construction Code Fees                            115,000        186,683            71,683
 Clean Communities Program                                  15,724         15,724                 -
 Body Armor Replacement Program                              2,676          2,676                 -
 Municipal Alliance on Alcoholism and Drug Abuse            11,500         11,500                 -
 B.C.U.A. Municipal Recycling Assistance Program             8,648          8,648                 -
 Drunk Driving Enforcement Fund                              4,025          4,025                 -
 Recycling Tonnage Grant                                     9,672          9,672                 -
 N.J. Motor Vehicle Service - Police Fees                  112,000        112,000                 -
 N.J. DOT                                                  150,000        150,000                 -
 Private Donation                                            1,005          1,005                 -
 Private Donation                                           19,650         19,650                 -
 Uniform Fire Safety Act                                    29,000         29,253               253
 Reserve for Payment of Debt service                             -              -                 -
 General Capital Fund Balance                              141,843        141,843                 -
 Cellular Tower Lease                                       68,000         77,004             9,004
 Cable T.V. Franchise Fee                                   40,000         44,447             4,447
 Real Property Lease                                        38,000         42,402             4,402
   Total Miscellaneous Revenues                        $ 4,068,754    $ 3,644,993     $    (423,761)

Receipts From Delinquent Taxes                         $   380,000    $     403,676   $       23,676

Amount to be Raised by Taxation for Municipal Budget   $ 12,635,789   $ 12,880,241    $     244,452

Total Revenues                                         $ 17,529,543   $ 17,373,910    $    (155,633)




                                                                                                          48
                                                                                                      B-2

BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF REVENUES AND OTHER CREDITS TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                  Budget                              Excess/
                                                As Modified          Realized         (Deficit)
OTHER CREDITS TO INCOME

Miscellaneous Revenues Not Anticipated          $            -   $     135,844    $     135,844
Unexpended Balances of Appropriation Reserves                -         799,190          799,190
Interfund Loans Returned                                     -         882,679          882,679
Cancellations & Non-Cash Adjustments                         -          99,084           99,084
Taxes Allocated to School and County:
  Local District School Tax                         22,741,261       22,741,261                   -
  Regional High School Tax                           9,698,905        9,698,905                   -
  County Tax Levy                                    4,662,797        4,662,797                   -
  County Open Space                                    267,114          267,114                   -
  Municipal Open Space Preservation                    253,681          253,681                   -
  Added County Taxes                                     8,190            8,190                   -
  Added County Open Space                                  481              481                   -

Total Other Credits to Income                   $ 37,632,429     $ 39,549,226     $ 1,916,797

Total Revenues and Other Credits to Income      $ 55,161,972     $ 56,923,136     $ 1,761,164




                                                                                                      49
                                                                                                                          B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                          Appropriated                      Expended            Unexpended
                                       2008      Budget After         Paid or                     Balance
                                      Budget      Modification        Charged     Reserved       Canceled  Overexpended

OPERATIONS - WITHIN "CAPS"

General Government Functions
General Administration:
  Salaries and Wages              $    363,015    $    363,015    $     363,006   $         9   $        -   $       -
  Other Expenses                        69,793          67,793           58,491         9,302            -           -
Communication Committee:
  Salaries and Wages                          -              -                -             -            -           -
  Other Expenses                         21,770         20,770           12,846         7,924            -           -
Mayor and Council:
  Salaries and Wages                     42,075         42,075           41,669           406            -           -
  Other Expenses                         64,500         62,000           55,310         6,690            -           -
Municipal Clerk:
  Salaries and Wages                     84,473         82,473           80,903         1,570            -           -
  Other Expenses                         18,895         21,695           19,817         1,878            -           -
Elections:
  Salaries and Wages                      3,150          3,150            3,261             -            -         111
  Other Expenses                         20,500         14,500           11,582         2,918            -           -
Financial Administration:
  Salaries and Wages                   143,017         141,017          139,423         1,594            -           -
  Other Expenses                        23,900          23,900           23,276           624            -           -
Audit Services:
  Other Expenses                         37,000         37,000           31,581         5,419            -           -
Revenue Administration:
  Salaries and Wages                     87,165        101,165           95,744         5,421            -           -
  Other Expenses                         15,750         15,750           12,671         3,079            -           -
Tax Assessment Administration:
  Salaries and Wages                   105,062         105,062          104,311           751            -           -
  Other Expenses                        20,000          19,000           13,575         5,425            -           -
Legal Services:
  Other Expenses                       175,000         209,000          189,688        19,312            -           -
Engineering Services:
  Other Expenses                         30,000         28,000            9,133        18,867            -           -

Land Use Administration
Planning Board:
 Salaries and Wages                      27,968         27,968           27,297           671            -           -
 Other Expenses                          22,500         22,500           11,187        11,313            -           -
Zoning Board of Adjustment:
 Salaries and Wages                      14,129         14,129           14,033           96             -           -
 Other Expenses                           9,100          9,100            8,929          171             -           -

Insurance
General Liability                       205,000         205,000          76,184       128,816            -           -
Worker Compensation Insurance           220,000         195,000         101,219        93,781            -           -
Employee Group Health                 2,283,963       2,278,963       1,926,327       352,636            -           -




                                                                                                                          50
                                                                                                                                B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                  Appropriated                   Expended             Unexpended
                                               2008      Budget After      Paid or                      Balance
                                              Budget      Modification     Charged     Reserved        Canceled  Overexpended

OPERATIONS - WITHIN "CAPS" (Continued)

Public Safety Functions
Police:
  Salaries and Wages                        $ 3,525,675   $ 3,517,175    $ 3,499,265   $   17,910     $        -   $        -
  Other Expenses                                165,350       161,350        153,278        8,072              -            -
Aid to Volunteer Ambulance Companies:
  Other Expenses                                 25,000        25,000         25,000              -            -            -
Flood Control Committee:
  Salaries and Wages                              4,000          4,200         4,200            -              -            -
  Other Expenses                                  2,000          2,000             -        2,000              -            -
Office of Emergency Management:
    Salaries and Wages                            5,500         5,500          5,000          500              -            -
  Other Expenses                                 11,450        11,450          4,579        6,871              -            -
Fire Department:
  Salaries and Wages                             43,744        43,744         43,351         393               -            -
  Other Expenses                                123,200       123,200        122,724         476               -            -
Municipal Prosecutor:
  Salaries and Wages                             25,292        25,292         21,430        3,862              -            -

Public Works Functions
Streets and Road Maintenance:
 Salaries and Wages                             562,926       595,926        618,783            -              -       22,857
 Other Expenses                                 196,400       166,400        114,628       51,772              -            -
Shade Tree Commission:
 Other Expenses                                  17,100        15,100         10,552        4,548              -            -
Solid Waste Collection:
 Garbage and Trash Removal - Contractual      1,295,000     1,295,000      1,233,348       61,652              -            -
Buildings and Grounds:
 Salaries and Wages                             180,379       180,379        179,750          629              -            -
 Other Expenses                                 148,100       143,100        129,447       13,653

Health and Human Services
Occupational Safety and Health Act                3,000          3,000         3,280              -            -         280

Health and Human Services
Board of Health:
 Salaries and Wages                              55,171        55,171         55,171            -              -            -
 Other Expenses                                 152,658       152,958         80,320       72,638              -            -
Environmental Health Services Commission:
 Salaries and Wages                               1,200          1,200         1,200           -               -            -
 Other Expenses                                     760            760           500         260               -            -




                                                                                                                                51
                                                                                                                                        B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                       Appropriated                       Expended            Unexpended
                                                    2008      Budget After          Paid or                     Balance
                                                   Budget      Modification         Charged     Reserved       Canceled  Overexpended

OPERATIONS - WITHIN "CAPS" (Continued)

Park and Recreation Functions
Board of Recreation Commissioners
(R.S. 40:12-1 et seq.):
  Salaries and Wages                           $    143,540    $    153,240     $     148,852   $     4,388   $        -   $        -
  Other Expenses                                    287,458         277,458           273,314         4,144            -            -
Senior Citizens Activities
  Salaries and Wages                                  56,780          56,780           56,363           417            -            -
  Other Expenses                                      38,850          38,850           32,269         6,581            -            -

Other Common Operating Functions
Celebration of Public Events, Anniversary or Holiday (R.S. 50:48-5.4):
 Other Expenses                                       15,800           15,800          14,030         1,770            -            -

Municipal Court
Municipal Court Administration:
 Salaries and Wages                                 136,242         135,242           132,009         3,233            -            -
 Other Expenses                                      13,400          13,400             6,846         6,554            -            -
Public Defender (P.L. 1997, C.256):
 Salaries and Wages                                    8,699           8,699            8,674           25             -            -

Code Enforcement Administration
Uniform Construction Code Enforcement Functions:
 Salaries and Wages                              191,249            191,249           193,337             -            -        2,088
 Other Expenses                                   10,128              9,128             5,459         3,669            -            -

Utility Expenses and Bulk Purchases
Gasoline                                            180,000         180,000           151,131        28,869            -            -
Diesel Fuel                                               -               -                 -             -            -            -
Electricity                                         106,000         123,000           112,003        10,997            -            -
Telephone and Telegraph                              85,000          85,000            77,365         7,635            -            -
Natural Gas                                          41,000          40,000             9,799        30,201            -            -
Street Lighting                                     140,000         140,000           143,266             -            -        3,266

Total Operations - Within "CAPS"               $ 12,105,776    $ 12,105,776     $ 11,101,986    $ 1,032,392   $        -   $   28,602
Contingent                                            5,000           5,000                -          5,000            -            -
Total Operations Including Contingent - Within $ 12,110,776    $ 12,110,776     $ 11,101,986    $ 1,037,392   $        -   $   28,602

Detail:
 Salaries and Wages                            $ 5,810,451     $ 5,853,851      $ 5,837,032     $    41,875   $        -   $   25,056
 Other Expenses                                $ 6,300,325     $ 6,256,925      $ 5,264,954     $   995,517   $        -   $    3,546




                                                                                                                                        52
                                                                                                                                      B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                      Appropriated                     Expended             Unexpended
                                                   2008      Budget After        Paid or                      Balance
                                                  Budget      Modification       Charged     Reserved        Canceled  Overexpended

DEFERRED CHARGES AND STATUTORY EXPENDITURES - WITHIN "CAPS"

Deferred Charges
Emergency Authorizations                      $           -   $         -    $           -   $          -   $        -   $        -
Deficit in Animal Control Fund                            -             -                -              -            -            -
Overexpenditures of Appropriations                   19,197        19,197           19,197              -            -            -
Expenditure Without Appropriation                     1,971         1,971            1,971              -            -            -
Water Utility                                        25,000        25,000           25,000              -            -            -

Statutory Expenditures
Public Employees' Retirement System                      -              -                -             -             -            -
Social Security System (O.A.S.I.)                  413,000        413,000          403,011         9,989             -            -
Consolidated Police and Fire Pension Fund                -              -                -             -             -            -
Police and Firemen's Retirement System                   -              -                -             -             -            -

Total Deferred Charges and Statutory Expendi $     459,168    $   459,168    $     449,179   $     9,989    $        -   $        -

Total General Appropriations for Municipal Pur $ 12,569,944   $ 12,569,944   $ 11,551,165    $ 1,047,381    $        -   $   28,602




                                                                                                                                      53
                                                                                                                                      B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                      Appropriated                     Expended             Unexpended
                                                   2008      Budget After        Paid or                      Balance
                                                  Budget      Modification       Charged     Reserved        Canceled  Overexpended

OPERATIONS - EXCLUDED FROM "CAPS"

Insurance
Employee Group Insurance                     $            -   $          -   $           -    $         -   $        -   $       -

Statutory Expenditures
Police & Firemen's Retirement System               610,668        610,668          610,668              -            -           -
Public Employees Retirement System                 199,093        199,093          199,093              -            -           -

Other Public Works Functions
Stormwater Management                                75,000        75,000           31,849         43,151            -           -

Public Safety
"9-1-1 System"                                       14,000        14,000           12,466          1,534            -           -

Education
Maintenance of Free Public Library                 884,446        884,446          884,446              -            -           -

Statutory Expenditures
Length of Service Awards Program (LOSAP)             85,000        85,000           (1,150)        86,150            -           -

Public and Private Programs Offset by Revenues
Cash Match for Grants                                2,000          2,000                -          2,000            -           -
B.C.U.A. Municipal Recycling Assistance Prog         8,648          8,648            8,648              -            -           -
Smart Growth Grant - Local                               -              -                -              -            -           -
Clean Communities Program                           15,724         15,724           15,724              -            -           -
Drunk Driving Enforcement Fund                       4,025          4,025            4,025              -            -           -
Body Armor Replacement Program                       2,676          2,676            2,676              -            -           -
Bullet Proof Vest Program (Federal)                      -              -                -              -            -           -
Municipal Alliance on Alcoholism and Drug Abu       11,500         11,500           11,500              -            -           -
Municipal Alliance on Alcoholism and Drug Abu        2,875          2,875            2,875              -            -           -
Recycling Tonnage Grant                              9,672          9,672            9,672              -            -           -
N.J. Motor Vehicle Services                        112,000        112,000          112,000              -            -           -
Private Donations-Other Expenses                    19,650         19,650           19,650              -            -           -
Private Donations-Other Expenses                     1,006          1,006            1,006              -            -           -
NJDOT Grant                                        150,000        150,000          150,000              -            -           -
Recreation Opportunities for Individuals With D          -              -                -              -            -           -

Total Operations Excluded from "CAPS"        $ 2,207,983      $ 2,207,983    $ 2,075,148      $   132,835   $        -   $       -

Detail:
 Salaries and Wages                          $     4,025      $     4,025    $     4,025      $         -   $        -   $       -
 Other Expenses                              $ 2,203,958      $ 2,203,958    $ 2,071,123      $   132,835   $        -   $       -




                                                                                                                                      54
                                                                                                                                         B-3


BOROUGH OF OAKLAND
CURRENT FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                                         Appropriated                     Expended             Unexpended
                                                      2008      Budget After        Paid or                      Balance
                                                     Budget      Modification       Charged     Reserved        Canceled  Overexpended

CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"

Capital Improvement Fund                         $    100,000    $   100,000    $     100,000   $          -   $        -   $        -
Master Plan                                                 -              -                -              -            -            -

Total Capital Improvements - Excluded From " $        100,000    $   100,000    $     100,000   $          -   $        -   $        -

DEBT SERVICE - EXCLUDED FROM "CAPS"

Municipal Debt Service
Bond Principal                                   $    875,000    $   875,000    $     875,000   $          -   $        -   $        -
Bond Interest                                         261,960        261,960          261,960              -            -            -
Note Interest                                               -              -                -              -            -            -

Green Trust Loan Program:
Loan Repayments of Principal and Interest               21,291        21,291           21,291              -            -            -

Total Debt Service - Excluded From "CAPS"        $ 1,158,251     $ 1,158,251    $ 1,158,251     $          -   $        -   $        -

DEFERRED CHARGES - EXCLUDED FROM "CAPS"

Deferred Charges to Future Taxation-Unfunded $        741,843    $   741,843    $     741,843   $          -   $        -   $        -
Special Emergency Authorizations - 5 Years (N         146,000        146,000          146,000              -            -            -

Total General Appropriations for Municipal Pur $ 4,354,077       $ 4,354,077    $ 4,221,242     $   132,835    $        -   $        -

Subtotal General Appropriations                  $ 16,924,021    $ 16,924,021   $ 15,772,407    $ 1,180,216    $        -   $   28,602
Reserve for Uncollected Taxes                         605,522         605,522        605,522              -             -            -
Total General Appropriations                     $ 17,529,543    $ 17,529,543   $ 16,377,929    $ 1,180,216    $        -   $   28,602

Budget Appropriations - Adopted Budget        $ 17,378,538       $ 17,378,538
Budget Appropriations - Added by N.J.S. 40A:4      151,005            151,005
Emergency Appropriations                                 -                  -
                                              $ 17,529,543       $ 17,529,543

Other Charges to Income:
Interfund Advances Originating in Current Year                   $          -   $      63,343
Refund of Prior Year's Revenue                                              -         561,115
Taxes Allocated to School and County:
  Local District School Tax                                        22,741,261     22,741,261
  Regional High School Tax                                          9,698,905      9,698,905
  County Tax Levy                                                   4,662,797      4,662,797
  County Open Space                                                   267,114        267,114
  Municipal Open Space Preservation                                   253,681        253,681
  Added County Taxes                                                    8,190          8,190
  Added County Open Space                                                 481            481
                                                                 $ 37,632,429   $ 38,256,887




                                                                                                                                         55
                                                                                  C-1

BOROUGH OF OAKLAND
FEDERAL AND STATE GRANT FUND
STATEMENT OF ASSETS, LIABILITIES AND RESERVES - STATUTORY BASIS




                                         2008           2007           2006

ASSETS

Cash                                 $   152,623    $   137,753    $    96,289

Interfund Receivable:
  Trust & Escrow Deposit Fund        $     4,650    $          -   $          -

Intergovernmental Receivable:
  Grants Receivable                  $   150,000    $    70,833    $    89,450

Total Assets                         $   307,273    $   208,586    $   185,739


LIABILITIES AND RESERVES

Accounts/Contracts Payable           $   141,674    $          -   $          -

Interfund Payable:
  Current Fund                       $          -   $          -   $          -

Deferred Revenue:
 Appropriated Reserves               $   122,873    $   167,840    $   151,636
 Unappropriated Reserves                  42,726         40,746         34,103
                                     $   165,599    $   208,586    $   185,739

Total Liabilities and Reserves       $   307,273    $   208,586    $   185,739




                                                                                  56
                                                                                                                                                      C-2


BOROUGH OF OAKLAND
FEDERAL AND STATE GRANT FUND
STATEMENT OF GRANTS RECEIVABLE
Year Ended December 31, 2008




                                                    Balance                                                                            Balance
                                                  December 31,       Revenue                           Unappropriated                December 31,
                    Program                          2007            Realized           Received       Reserve Applied   Adjustments    2008

Federal:
2005 Body Armor Replacement Program               $     1,900    $              -   $              -   $             -   $    (1,900) $           -

State
2008 Clean Communities Program                     $        -    $      15,724      $           -      $       15,724                   $         -
2004 Municipal Stormwater                                   -                -              2,552                   -         2,552               -
2008 Over The Limit Under Arrest                            -                -              3,234                   -         3,234               -
2008 Drunk Driving Enforcement Fund                         -            4,025                  -               4,025                             -
2008 Body Armor Replacement Program                         -            2,676                  -               2,676                             -
2008 N.J. Motor Vehicle Police Fees                         -          112,000            112,000                   -                             -
2007 N.J. Motor Vehicle Police Fees                     9,334                -              9,334                   -                             -
2006 N.J. Motor Vehicle Police Fees                    18,667                -                  -                   -        (18,667)             -
2007 Recreation Opportunities for Individuals With      4,460                -              2,389                   -         (2,071)             -
2008 Recycling Tonnage Grant                                -            9,672                  -               9,672                             -
2008 N.J.D.O.T. Municipal Aid                               -          150,000                  -                   -                       150,000
                                                   $   32,461    $     294,097      $     129,509      $       32,097    $   (14,952) $     150,000

Other
2008 BCUA Municipal Recycling Assistance Progra $           -    $       8,648      $           -      $         8,648                  $         -
2008 Municipal Alliance on Alcoholism & Drug Abus           -           11,500                  -                    -       (11,500)             -
2007 Municipal Alliance on Alcoholism & Drug Abus      11,500                -              9,717                    -        (1,783)             -
2006 Municipal Alliance on Alcoholism & Drug Abus       3,377                -                  -                    -        (3,377)             -
Private Donations                                           -           20,655             20,655                    -                            -
Recreation Commission                                  21,595                -                  -                    -       (21,595)             -
                                                  $    36,472    $      40,803      $      30,372      $         8,648   $   (38,255) $           -

Grand Total                                       $    70,833    $     334,900      $     159,881      $       40,745    $   (55,107) $     150,000




                                                                                                                                                      57
                                                                                                                                   C-3

BOROUGH OF OAKLAND
FEDERAL AND STATE GRANT FUND
STATEMENT OF APPROPRIATED RESERVES
Year Ended December 31, 2008




                                                      Balance                                                         Balance
                                                    December 31,                        Paid or                     December 31,
                     Program                           2007            Budget           Charged       Adjustments      2008

Federal
2005 Body Armor Replacement Program                 $      1,900   $            -   $             -   $     (1,900) $          -

State
2008 Clean Communities Program                       $         -   $     15,724     $           -     $          - $     15,724
2007 Clean Communities Program                            12,363              -                 -                -       12,363
2006 Clean Communities Program                               351              -                 -                -          351
2003 Clean Communities Program                             4,618              -             3,420                -        1,198
2008 Body Armor Replacement Program - State                    -          2,676                 -                -        2,676
2006 Body Armor Replacement Program - State                2,174              -                 -                -        2,174
2006 Body Armor Replacement Program - State                1,974              -                 -                -        1,974
2003 Body Armor Replacement Program - State                2,732              -             2,335                -          397
2008 Drunk Driving Enforcement Fund                            -          4,025               316                -        3,709
2003 DEP Trail Cleanup Grant - State                       9,887              -                 -           (9,887)           -
2003 DEP Trail Cleanup Grant - Local                       3,750              -                 -           (3,750)           -
2005 Smart Growth Grant                                   45,000              -                 -          (45,000)           -
2006 Municipal Stormwater                                  7,655              -                 -           (7,655)           -
2006 Municipal Stormwater                                    293              -                 -             (293)           -
2008 Recycling Tonnage Grant                                   -          9,672                 -                -        9,672
2007 Recycling Tonnage Grant                              10,090              -                 -                -       10,090
2006 Recycling Tonnage Grant                               6,668              -             4,671                -        1,997
2008 N.J. Motor Vehicle Police Fees                            -        112,000           103,970                -        8,030
2007 N.J. Motor Vehicle Police Fees                        3,077              -             3,077                -            -
2007 Recreation Opportunities for Individuals With D       6,862              -                 -           (6,862)           -
State Legislative Grant - Public Safety                      313              -                 -             (313)           -
2008 N.J.D.O.T. Municipal Aid                                  -        150,000           148,540                -        1,460
2003 GIS Grant                                             1,875              -                 -           (1,875)           -
                                                     $   119,682   $    294,097     $     266,329     $    (75,635) $    71,815

Other
2008 BCUA Municipal Recycling Assistance Program$              -   $      8,648     $           -     $          - $      8,648
2007 BCUA Municipal Recycling Assistance Program           9,476              -                 -                -        9,476
2006 BCUA Municipal Recycling Assistance Program           9,987              -                 -                -        9,987
2005 BCUA Municipal Recycling Assistance Program           5,471              -             2,781                -        2,690
Recreation Commission                                      3,037              -                 -           (3,037)           -
2008 Municipal Alliance on Alcoholism & Drug Abuse             -         11,500                 -          (11,500)           -
2008 Municipal Alliance on Alcoholism & Drug Abuse             -          2,875                 -           (2,875)           -
2007 Municipal Alliance on Alcoholism & Drug Abuse         4,691              -                 -           (4,691)           -
2007 Municipal Alliance on Alcoholism & Drug Abuse         2,875              -                 -           (2,875)           -
2006 Municipal Alliance on Alcoholism & Drug Abuse         2,177              -             1,614             (563)           -
2003 Municipal Alliance on Alcoholism & Drug Abuse         8,544              -             8,544                -            -
2008 Private Donations                                         -         20,655               398                -       20,257
                                                   $      46,258   $     43,678     $      13,337     $    (25,541) $    51,058

Grand Total                                         $    167,840   $    337,775     $     279,666     $   (103,076) $   122,873




                                                                                                                                   58
                                                                                                                          C-4

BOROUGH OF OAKLAND
FEDERAL AND STATE GRANT FUND
STATEMENT OF UNAPPROPRIATED RESERVES
Year Ended December 31, 2008




                                                Balance                                                      Balance
                                              December 31, Appropriated       Received                     December 31,
                     Program                     2007        in 2008           in 2008       Adjustments      2008

State
Clean Communities Program                     $    15,724   $    15,724   $      16,438      $         -   $    16,438
Body Armor Replacement Program                      2,676         2,676           2,625                -         2,625
Recycling Tonnage Grant                             9,672         9,672          20,116                -        20,116
Alcohol Education & Rehabilitation Grant                -             -             589                -           589
Drunk Driving Enforcement Fund                      4,026         4,026           2,958                -         2,958
                                              $    32,098   $    32,098   $      42,726      $         -   $    42,726

Other
BCUA Municipal Recycling Assistance Program   $     8,648   $     8,648   $              -   $         -   $          -

Grand Total                                   $    40,746   $    40,746   $      42,726      $         -   $    42,726




                                                                                                                          59
                                                                                                                    D-1


BOROUGH OF OAKLAND
TRUST FUND
STATEMENT OF ASSETS, LIABILITIES AND RESERVES - STATUTORY BASIS




                                                                          2008           2007            2006

ASSETS

Cash:
 Trust & Escrow Deposit Account                                   $ 1,247,616 $   221,042           $      86,858
 Unemployment Account                                                  14,795         617                   7,398
 Unemployment Certificate of Deposit                                  230,000     230,000                 230,000
 Municipal Open Space Trust Account                                   878,447     252,500                       -
 Landfill Closure Account                                               2,069       2,027                   2,016
 Health Benefits Account                                               99,262      78,686                  80,882
 Net Payroll Account                                                  (57,562)        309                   2,170
 Payroll Agency Account                                                49,080         551                     554
 Animal Control Account                                                10,326       7,018                   1,479
 Animal Control Change Fund                                                50          50                      50
 Clerk Dog Account                                                        135           -                       -
 COAH Trust Fund                                                      773,509     732,565                       -
 Library Settlement Trust Fund                                        101,583     100,217                       -
 Lien Redemption Trust Fund                                            48,544      52,244                       -
 Green Trust Account                                                        1           -                       -
 Bond Coupon Account                                                    7,324           -                       -
 P.A.T.F. #I                                                               53          53                      53
 P.A.T.F. #II                                                              10          10                      10
                                                                  $ 3,405,242 $ 1,677,889           $     411,470



Interfund Receivable:
  Current Fund                                                    $       253,740   $ 1,557,224     $ 2,600,369
  Sewer Utility Operating Fund                                             15,000        15,000          15,000
  General Capital Fund                                                    125,000       125,000         125,000
  Trust & Escrow Deposit Fund                                                 370           370               -
  Water Utility Operating Fund                                                113           113             113
                                                                  $       394,223   $ 1,697,707     $ 2,740,482

Deferred Compensation Plan Assets:
 Lincoln Financial Group                                              $ 328,551         $ 398,746       $ 305,092

Total Assets                                                      $ 4,128,016       $ 3,774,342     $ 3,457,044



LIABILITIES AND RESERVES

Interfunds Payable:
  Current Fund                                                    $        11,441   $      43,900   $      13,010
  Federal & State Grant Fund                                                4,650               -               -
  General Capital Fund                                                    205,000               -               -
  Animal Control Fund                                                         370             370               -
                                                                  $       221,461   $      44,270   $      13,010

Intergovernmental Payable:
  State of N.J.                                                   $         1,559   $       1,559   $       1,559

Other Liabilities and Reserves:
 Reserve for Animal Control Expenditures                              $10,859  $    (1,166) $    (6,705)
 Reserve for Clerk Dog Expenditures                                       135            -            -
 Reserve for Developers and Escrow Deposits                         1,376,795    1,250,936    2,197,495
 Reserve for Net Payroll                                              (57,562)         286        2,170
 Reserve for Payroll Deductions                                        49,080          435          554
 Reserve for Landfill Closure                                           2,069        2,027        2,016
 Reserve for Municipal Open Space                                     923,881      875,200      622,700
 Reserve for Unemployment Claims                                      244,803      237,464      237,398
 Reserve for P.A.T.F. I Expenditures                                       53           53           53
 Reserve for P.A.T.F. II Expenditures                                      10           10           10
 Reserve for COAH Expenditures                                        769,627      732,565            -
 Reserve for Library Settlement Expenditures                          101,583      100,217            -
 Reserve for Lien Redemption Expenditures                              48,525       52,244            -
 Reserve for Health Benefit Claims                                     99,262       79,496       81,692
 Reserve for Green Trust Expenditures                                       1            -            -
 Reserve for Bond Coupon Expenditures                                   7,324            -            -
 Reserve for Deferred Compensation                                    328,551      398,746      305,092
                                                                  $ 3,904,996 $ 3,728,513 $ 3,442,475

Total Liabilities and Reserves                                    $ 4,128,016       $ 3,774,342     $ 3,457,044


                                                                                                                    60
                                                                                              E-1

BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                                      2008          2007           2006

ASSETS

Cash:
 General Capital Account                         $    714,103   $   106,820    $ 3,838,774

Interfund Receivable:
  Current Fund                                    $         -   $          -   $   104,763
  Municipal Open Space Trust Fund                     205,000              -             -
  Trust & Escrow Deposit Fund                               -              -             -
  Water Utility Operating Fund                              -              -             -
                                                 $    205,000   $          -   $   104,763

Intergovernmental Receivable:
  Grants Receivable                              $    544,330   $   544,330    $   419,330

Deferred Charges:
 Funded                                          $ 6,114,666    $ 7,009,623    $ 8,092,187
 Unfunded                                           9,858,327      5,001,751      4,023,146
                                                 $ 15,972,993   $ 12,011,374   $ 12,115,333

Total Assets                                     $ 17,436,426   $ 12,662,524   $ 16,478,200


LIABILITIES AND FUND BALANCE

Accounts/Contracts Payable                       $    444,543   $    95,185    $          -

Interfund Payable:
  Current Fund                                   $    167,338   $   851,247    $         -
  Trust & Escrow Deposit Fund                         125,000       125,000        125,000
  Water Utility Capital Fund                                -             -              -
                                                 $    292,338   $   976,247    $   125,000

Other Liabilities and Reserves:
 Capital Improvement Fund                        $    153,574   $   163,689    $   132,074
 Reserve for Encumbrances                             337,348       352,834        352,834
 Reserve for Grant Receivable                          72,605        72,605         72,605
 Reserve for Allerman Brook                                 -             -              -
 Reserve for Debt Service                                   -             -        264,510
                                                 $    563,527   $   589,128    $   822,023

Improvement Authorizations:
  Funded                                         $    48,718    $   118,582    $   497,618
  Unfunded                                         3,377,610      3,731,917      2,994,651
                                                 $ 3,426,328    $ 3,850,499    $ 3,492,269

Serial Bonds Payable                             $ 6,063,000    $ 6,938,000    $ 8,001,000

Bond Anticipation Notes Payable                  $ 6,271,925    $          -   $ 3,844,840

Loan Payable                                     $     51,666   $    71,623    $    91,187

Fund Balance                                     $    323,099   $   141,842    $   101,881

Total Liabilities and Reserves                   $ 17,436,426   $ 12,662,524   $ 16,478,200

                                                                                              61
                                                                                                                                                                              E-3



BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Year Ended December 31, 2008




                                                                         Balance                                                            Serial                       Balance
                                                                       December 31,                          Receipts   BANs Paid By       Bonds                       December 31,
                            Improvement                                   2007              Authorized       Applied      Budget           Issued        Cancellations    2008

#01-418 Various Capital Improvements                                   $      470,600   $            -   $     (350,478) $         -   $             -   $   (120,122) $           -
#02-440 Various Capital Improvements                                          939,240                -         (391,365)           -                 -       (142,520)       405,355
#04-475 Various Capital Improvements                                        1,153,768                -                -            -                 -       (233,127)       920,641
#05-512 Various Capital Improvements                                        1,135,028                -                -            -                 -        (18,507)     1,116,521
#06-544 Various Capital Improvements                                           76,190                -                -            -                 -              -         76,190
#07-558 Various Capital Improvements                                          229,425                -                -            -                 -              -        229,425
#07-561 Various Capital Improvements                                          997,500                -                -            -                 -              -        997,500
#08-567 Acquisition of Real Property                                                -        5,045,000                -            -                 -              -      5,045,000
#08-586 Various Capital Improvements                                                -        1,067,695                -            -                 -              -      1,067,695

                                                                       $    5,001,751   $    6,112,695   $     (741,843) $         -   $             -   $   (514,276) $   9,858,327

                                        Bond Anticipation Notes Payable $           -                                                                                 $    6,271,925
                         Bond Anticipation Notes Paid With Capital Cash     3,480,330                                                                                      2,413,153
                            Bonds and Notes Authorized but not Issued       1,521,421                                                                                      1,173,249
                                                                        $   5,001,751                                                                                 $    9,858,327




                                                                                                                                                                               62
                                                                                                                                                                                                            E-4




BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Year Ended December 31, 2008



                                                                                 Capital      Municipal Open
                                                 Balance - January 1, 2008     Improvement     Space Trust     Bonds & Notes                                                          Balance - December 31, 2008
                Description                      Funded          Unfunded         Fund            Fund           Authorized        Expended          Refunded     Cancellations         Funded        Unfunded

#97-330 1997 Road Resurfacing Program        $        9,745   $            -   $          -   $           -    $           -   $           491   $            -   $      2,488    $          6,766   $           -
#97-341 Replacement of Curbs & Sidewalks             11,852                -              -               -                -                 -                -         11,852                   -               -
#99-361/369 & #00-394 Various Capital Improv         29,476                -              -               -                -                 -                -         29,476                   -               -
#99-363 Flood Control Project                             -           45,032              -               -                -                 -                -         45,032                   -               -
#00-376 Purchase of Fire Truck                       50,000                -              -               -                -                 -                -         50,000                   -               -
#00-383 Street/Sidewalk Improvements                 15,809           45,833              -               -                                  -                -         61,642                   -               -
#01-404 Resurfacing of Yawpo Avenue                       -            1,689              -               -                -                 -                -          1,689                   -               -
#01-405 Acquision of Property                             -           14,088              -               -                -                 -                -         14,088                   -               -
#01-418 Various Capital Improvements                      -          120,122              -               -                -                 -                -        120,122                   -               -
#01-423 Various Capital Improvements                      -           11,143              -               -                -                 -                -         11,143                   -               -
#02-440 Various Capital Improvements                      -          156,321              -               -                -                 -                -        142,521                   -          13,800
#02-446 Construction of Playground                    1,700           18,790              -               -                -                 -                -         20,490                   -               -
#03-462 Various Capital Improvements                      -           46,114              -               -                -             5,650                -         40,464                   -               -
#04-469 Acquision of Property                             -            1,642              -               -                -                 -                -          1,642                   -               -
#04-475 Various Capital Improvements                      -          713,326              -               -                -            66,867                -        233,126                   -         413,333
#05-512 Various Capital Improvements                      -          442,247              -               -                -           206,615                -         18,507                   -         217,125
#05-518 Acquisition of Fire Equipment                     -            2,523              -               -                -             1,780                -            743                   -               -
#06-534 Flood Control Allerman Brook                      -          416,400              -               -                -                 -                -              -                   -         416,400
#06-538 Various Capital Improvements                      -          340,130              -               -                -             1,498                -              -                   -         338,632
#07-558 Various Capital Improvements                      -          202,017              -               -                -           178,382                -              -                   -          23,635
#07-561 Various Capital Improvements                      -        1,154,500              -               -                -           448,746           12,251              -                   -         718,005
#08-567 Acquisition of Real Property                      -                -              -         205,000        5,045,000         5,137,210                -              -                   -         112,790
#08-582 Various Capital Improvements                      -                -         53,920               -                -            11,968                -              -              41,952               -
#08-586 Various Capital Improvements                      -                -         56,195               -        1,067,695                 -                -              -                   -       1,123,890

                                            $       118,582   $    3,731,917   $    110,115   $     205,000    $   6,112,695   $     6,059,207   $       12,251   $    805,025    $         48,718   $   3,377,610




                                                                                                                                                                                                             63
                                                                                                                         E-5

BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
STATEMENT OF SERIAL BONDS PAYABLE
Year Ended December 31, 2008




                                            Total        Balance                             Paid by       Balance
                                           Amount      December 31,        Issued In         Budget      December 31,
         Date of Issue - Purpose           of Issue       2007               2008          Appropriation    2008

12/01/98 General Improvement Bonds       $ 2,528,000   $     748,000   $               -   $   250,000   $     498,000
09/26/02 General Improvement Bonds         4,494,000       3,679,000                   -       450,000       3,229,000
12/01/06 General Improvement Bonds (A)     1,096,000       1,041,000                   -        55,000         986,000
12/01/06 General Improvement Bonds (C)     1,580,000       1,470,000                   -       120,000       1,350,000

                                                       $ 6,938,000     $               -   $   875,000   $ 6,063,000




                                                                                                                         64
                                                                                                                                                                            E-6



BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES PAYABLE
Year Ended December 31, 2008




                                      Amount of   Date of                                       Balance                                                        Balance
                                       Original   Original   Date of    Date of    Interest   December 31,                                                   December 31,
     Improvement Description            Note       Note       Issue     Maturity     Rate        2007          Issued      Decreased           Paydown          2008

#07-558 Various Capital Improvement    229,425    02/11/08   02/11/08   02/11/09   2.25%                -        229,425               -                 -       229,425

#07-561 Various Capital Improvement    997,500    02/11/08   02/11/08   02/11/09   2.25%                -        997,500               -                 -       997,500

#08-567 Various Capital Improvement 5,045,000     03/27/08   03/27/08   02/11/09   2.50%                -      5,045,000               -                 -      5,045,000

                                                                                              $         -    $ 6,271,925   $           -   $             -   $ 6,271,925




                                                                                                                                                                            65
                                                                                                                                  E-7

BOROUGH OF OAKLAND
GENERAL CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Year Ended December 31, 2008




                                     Balance                                                                         Balance
                                   December 31,                         BANs           Bonds        Cancellations/ December 31,
     Improvement Description          2007            Authorized       Issued          Issued        Adjustments      2008

#98-360 Acquisition of a Senior Bus $     2,194   $            -   $           -   $            -   $          - $     2,194
#00-383 Street/Sidewalk Improvemen       77,856                -               -                -        (77,856)          -
#01-404 Resurfacing of Yawpo Aven        63,586                -               -                -        (63,586)          -
#01-405 Acquision of Property            47,500                -               -                -        (47,500)          -
#02-430 Construction of Library           9,555                -               -                -              -       9,555
#02-442 Purchase of Telecom Equip        16,000                -               -                -              -      16,000
#04-475 Various Capital Improvemen          591                -               -                -              -         591
#06-534 Flood Control Allerman Broo         575                -               -                -              -         575
#06-538 Various Capital Improvemen          449                -               -                -              -         449
#06-544 Various Capital Improvemen       76,190                -               -                -              -      76,190
#07-558 Various Capital Improvemen      229,425                -         229,425                -              -           -
#07-561 Various Capital Improvemen      997,500                -         997,500                -              -           -
#08-567 Acquisition of Real Property          -        5,045,000       5,045,000                -              -           -
#08-586 Various Capital Improvemen            -        1,067,695               -                -              -   1,067,695

                                   $ 1,521,421    $ 6,112,695      $ 6,271,925     $            -   $   (188,942) $ 1,173,249




                                                                                                                                  66
                                                                                       F-1

BOROUGH OF OAKLAND
WATER UTILITY OPERATING FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                             2008            2007           2006

ASSETS

Cash:
 Operating Account                       $   129,160     $   131,398    $   256,289
 N.J. Cash Management Account                137,032         328,881        312,668
 Meter Deposit Account                         2,250           2,249          2,246
 Change Funds                                     50              50             50
                                         $   268,492     $   462,578    $   571,253

Consumer Accounts Receivable             $    74,159     $    33,033    $   119,029

Due From TD BankNorth                    $          29   $          -   $          -

Interfund Receivable:
  Current Fund                           $         -     $    67,468    $    41,305
  Water Utility Capital Fund                  60,118         177,741        177,856
  Sewer Utility Operating Fund                     -               -              -
                                         $    60,118     $   245,209    $   219,161

Deferred Charges:
 Overexpenditures                        $     9,495     $    11,098    $         -
 Expenditures Without Appropriation                -           3,630         54,457
 Operating Deficit                           111,069               -              -
                                         $   120,564     $    14,728    $    54,457

Total Assets                             $   523,362     $   755,548    $   963,900



LIABILITIES AND FUND BALANCE

Interfund Payable:
  Current Fund                           $    28,328     $   154,473    $   104,410
  Animal Control Fund                            113             113            113
  General Capital Fund                             -               -              -
  Water Utility Capital Fund                       -         117,895        117,895
  Sewer Utility Operating Fund                29,898          12,514            102
                                         $    58,339     $   284,995    $   222,520

Other Liabilities and Reserves:
 Accrued Interest on Bonds               $     8,743     $    41,538    $    21,294
 Appropriation Reserves                       30,076          32,079         62,087
 Meter Deposits                                1,902           1,902          1,902
 Reserve for Encumbrances                     41,993          18,851          8,087
                                         $    82,714     $    94,370    $    93,370

Reserve for Receivables                  $    74,159     $    33,033    $   119,029

Fund Balance                             $   308,150     $   343,150    $   528,981

Total Liabilities and Reserves           $   523,362     $   755,548    $   963,900

                                                                                       67
                                                                                              F-2

BOROUGH OF OAKLAND
WATER UTILITY OPERATING FUND
STATEMENT OF REVENUES AND OTHER CREDITS TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                            Anticipated                       Excess/
                                             Budget           Realized        (Deficit)

Operating Surplus Anticipated              $     35,000   $      35,000   $               -

Rents                                      $ 1,785,000    $ 1,576,092     $    (208,908)

Miscellaneous:
 Interest on Delinquent Accounts           $     40,000   $      46,652   $        6,652
 Hydrants                                             -               -
 Reserve for Debt Service                             -               -
 Total Miscellaneous                       $     40,000   $      46,652   $        6,652

                                           $ 1,860,000    $ 1,657,744     $    (202,256)

Other Credits to Income:
 Unexpended Balance of Appropriation Reserv $         -   $           -   $               -
 Deficit (General Budget)                        25,000          25,000                   -
 Cancellations and Adjustments                        -               -                   -
                                            $    25,000   $      25,000   $               -

Total Revenues and Credits to Income       $ 1,885,000    $ 1,682,744     $    (202,256)




                                                                                              68
                                                                                                                               F-3

BOROUGH OF OAKLAND
WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                             Appropriations                   Expended             Unexpended
                                         Adopted     Budget After       Paid or                     Balance
                                         Budget      Modification       Charged     Reserved        Canceled Overexpenditure

Operating:
 Salaries and Wages                  $     510,318 $      510,318 $       508,225 $            -   $    5,000 $       2,907

 Other Expenses:
  Other Expenses                     $     222,428 $      222,428 $       169,822 $     23,106 $       29,500 $           -
  Utilities                                274,000        274,000         259,533        6,967          7,500             -
  Group Insurance                          297,331        297,331         294,113            -          8,000         4,782
  Other Insurance                           42,000         42,000          43,274            -              -         1,274
                                     $     835,759 $      835,759 $       766,742 $     30,073 $       45,000 $       6,056

Capital Improvements:
 Capital Improvement Fund            $            -   $         -   $           -   $          -   $        -   $         -

Debt Service:
 Payment of Bonds                    $     360,000 $      360,000 $       360,000 $            -   $        -   $         -
 Interest on Bonds                         119,195        119,195         119,192              3            -             -
 Interest on Notes                               -              -               -              -            -             -
                                     $     479,195 $      479,195 $       479,192 $            3   $        -   $         -

Deferred Charges:
 Emergency Authorizations            $           - $           - $              - $            -   $        -   $         -
 Emergency Authorizations (N.J.S.                -             -                -              -            -             -
 Expenditure Without Appropriation           3,630         3,630            3,630              -            -             -
 Overexpenditures                           11,098        11,098           11,098              -            -             -
                                     $      14,728 $      14,728 $         14,728 $            -   $        -   $         -

Statutory Expenditures:
 Public Employees Retirement System $            - $           - $              - $            -   $        -   $        -
 Social Security System                     45,000        45,000           45,532              -            -          532
 Unemployment Compensation                       -             -                -              -            -            -
                                    $       45,000 $      45,000 $         45,532 $            -   $        -   $      532

Surplus (General Budget)             $            -   $         -   $           -   $          -   $        -   $         -

Total Appropriations                 $ 1,885,000 $ 1,885,000 $ 1,814,419 $              30,076 $       50,000 $       9,495



Other Charges to Income:
 Refund of Prior Year's Revenue                                     $           -




                                                                                                                               69
                                                                                      F-4

BOROUGH OF OAKLAND
WATER UTILITY CAPITAL FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                             2008           2007           2006

ASSETS

Cash:
 Operating Account                       $ 1,462,442    $ 1,148,598    $ 1,946,331

Interfund Receivable:
  General Capital                        $          -   $         -    $         -
  Current                                           -       800,000              -
  Water Utility Operating                           -       117,895        117,895
                                         $          -   $   917,895    $   117,895

Fixed Capital Authorized & Uncompleted   $ 1,538,587    $ 3,261,822    $ 3,803,822

Fixed Capital                            $10,589,757    $10,589,757    $ 9,657,757

Total Assets                             $ 13,590,786   $ 15,918,072   $ 15,525,805


LIABILITIES AND FUND BALANCE

Accounts Payable                         $    28,276    $   411,677    $   499,568

Interfund Payable:
  Current                                $         -    $       632    $         -
  Water Utility Operating                     60,118        177,741        177,856
                                         $    60,118    $   178,373    $   177,856

Other Liabilities and Reserves:
 Capital Improvement Fund                $   765,604    $   795,604    $   715,104
 Reserve for Amortization                  7,895,757      7,535,757      7,195,757
 Reserve for Debt Service                    155,879        155,879        155,879
 Reserve for Deferred Amortization           337,500        337,500        318,000
 Reserve for Encumbrances                    114,082        114,082        114,082
 Reserve for Sale of Municipal Assets            350            350            350
                                         $ 9,269,172    $ 8,939,172    $ 8,499,172

Improvement Authorizations:
  Funded                                 $         -    $   664,734    $ 1,104,499
  Unfunded                                 1,317,936      2,666,912      1,847,506
                                         $ 1,317,936    $ 3,331,646    $ 2,952,005

Serial Bonds Payable                     $ 2,694,000    $ 3,054,000    $ 3,394,000

Fund Balance                             $   221,284    $     3,204    $     3,204

Total Liabilities and Reserves           $ 13,590,786   $ 15,918,072   $ 15,525,805



                                                                                      70
                                                                              G-1

BOROUGH OF OAKLAND
SEWER UTILITY OPERATING FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                       2008          2007           2006

ASSETS

Cash:
 Operating Account                 $    35,620   $    17,738    $    31,258
 Change Funds                               25            25             25
                                   $    35,645   $    17,763    $    31,283

Consumer Accounts Receivable       $    39,670   $    16,196    $    44,787

Interfund Receivable:
  Current Fund                     $         -   $    50,155    $    20,012
  Water Utility Operating Fund          29,898        12,515            102
  Sewer Utility Assessment Fund              -             -              -
                                   $    29,898   $    62,670    $    20,114

Deferred Charges:
 Operating Deficit                 $     3,933   $          -   $     6,695
 Overexpenditures                            -              -        20,598
                                   $     3,933   $          -   $    27,293

Total Assets                       $   109,146   $    96,629    $   123,477


LIABILITIES AND FUND BALANCE

Interfunds Payable:
  Current Fund                     $    13,197   $       408    $    20,000
  Trust & Escrow Deposit                15,000        15,000         15,000
                                   $    28,197   $    15,408    $    35,000

Other Liabilities and Reserves:
 Appropriation Reserves            $    24,252   $    28,895    $    12,938
 Consumer Deposits                           -             -              -
 Reserve for Encumbrances               14,332         8,435         13,885
                                   $    38,584   $    37,330    $    26,823

Reserve for Receivables            $    39,670   $    16,196    $    44,787

Fund Balance                       $     2,695   $    27,695    $    16,867

Total Liabilities and Reserves     $   109,146   $    96,629    $   123,477




                                                                               71
                                                                                                      G-2

BOROUGH OF OAKLAND
SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES AND OTHER CREDITS TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                             Anticipated                              Excess/
                                              Budget               Realized           (Deficit)

Operating Surplus Anticipated               $     25,000       $      25,000      $               -

Rents                                       $    340,000       $     308,623      $      (31,377)

Miscellaneous:
 Interest on Delinquent Accounts            $              -   $              -   $               -
 Deficit (General Budget)                                  -                  -                   -
 Total Miscellaneous                        $              -   $              -   $               -

                                            $    365,000       $     333,623      $      (31,377)

Other Credits to Income:
 Non-Budget Revenues                         $             -   $              -   $               -
 Unexpended Balance of Appropriation Reserve               -                  -                   -
 Cancellations and Adjustments                             -                  -                   -
                                             $             -   $              -   $               -

Total Revenues and Credits to Income        $    365,000       $     333,623      $      (31,377)




                                                                                                       72
                                                                                                                             G-3

BOROUGH OF OAKLAND
SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES AND OTHER CHARGES TO INCOME - STATUTORY BASIS
Year Ended December 31, 2008




                                           Appropriations                   Expended             Unexpended
                                        Adopted    Budget After       Paid or                      Balance
                                        Budget     Modification       Charged     Reserved        Canceled Overexpenditure

Operating:
 Salaries and Wages                 $      84,671   $    84,671   $      84,671   $          -   $        -   $         -

 Other Expenses:
  Other Expenses                    $     136,154   $   128,154   $     109,425   $   18,729     $        -   $         -
  Utilities                                37,500        45,000          41,566        3,434              -             -
  Group Insurance                          68,675        68,675          66,586        2,089              -             -
  Other Insurance                               -             -               -            -              -             -
                                    $     242,329   $   241,829   $     217,577   $   24,252     $        -   $         -

Capital Improvements:
 Capital Improvement Fund           $           -   $         -   $           -   $          -   $        -   $         -

Debt Service:
 Payment of Bonds                   $           -   $         -   $           -   $          -   $        -   $         -
 Interest on Bonds                              -             -               -              -            -             -
 Interest on Notes                              -             -               -              -            -             -
                                    $           -   $         -   $           -   $          -   $        -   $         -

Deferred Charges:
 Emergency Authorizations           $           -   $         -   $           -   $          -   $        -   $         -
 Emergency Authorizations (N.J.S.               -             -               -              -            -             -
 Overexpenditures                               -             -               -              -            -             -
                                    $           -   $         -   $           -   $          -   $        -   $         -

Statutory Expenditures:
 Public Employees Retirement System $           -   $         -   $           -   $          -   $        -   $         -
 Social Security System                    13,000        13,500          13,500              -            -             -
 Unemployment Compensation                      -             -               -              -            -             -
                                    $      13,000   $    13,500   $      13,500   $          -   $        -   $         -

Surplus (To Current)                $      25,000   $    25,000   $      25,000   $          -   $        -   $         -

Total Appropriations                $     365,000   $   365,000   $     340,748   $   24,252     $        -   $         -


Other Charges to Income:
 Refund of Prior Year's Revenue                                   $           -




                                                                                                                              73
                                                                                     G-4

BOROUGH OF OAKLAND
SEWER UTILITY CAPITAL FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                             2008          2007           2006

ASSETS

Fixed Capital Authorized & Uncompleted   $   282,000   $          -   $          -

Fixed Capital                            $    74,100   $    74,100    $    74,100

Total Assets                             $   356,100   $    74,100    $    74,100


LIABILITIES AND FUND BALANCE

Accounts Payable                         $   203,697   $          -   $          -

Other Liabilities and Reserves:
 Reserve for Amortization                $    74,100   $    74,100    $    74,100

Improvement Authorizations:
  Funded                                 $         -   $          -   $          -
  Unfunded                                    78,303              -              -
                                         $    78,303   $          -   $          -

Total Liabilities and Reserves           $   356,100   $    74,100    $    74,100




                                                                                      74
                                                                                G-5

BOROUGH OF OAKLAND
SEWER ASSESSMENT TRUST FUND
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE - STATUTORY BASIS




                                       2008           2007           2006

ASSETS

Cash:
 Operating Account                 $          -   $          -   $          -

Assessment Receivable              $     1,800    $     1,800    $     1,800

Total Assets                       $     1,800    $     1,800    $     1,800


LIABILITIES AND FUND BALANCE

Interfund Payable:
  Water Utility Operating Fund     $          -   $          -   $          -

Reserve for Receivables            $     1,800    $     1,800    $     1,800

Total Liabilities and Reserves     $     1,800    $     1,800    $     1,800




                                                                                 75
                                                                            H-1

BOROUGH OF OAKLAND
GENERAL FIXED ASSET ACCOUNT GROUP
STATEMENT OF ASSETS AND FUND BALANCE - STATUTORY BASIS




                                     2008          2007          2006

ASSETS

Land                              $ 9,854,476   $ 9,854,476   $ 9,854,476
Buildings and Improvements          5,246,212     5,246,212     5,246,212
Equipment                           7,274,056     7,274,056     7,274,056
Construction in Progress            2,563,047     2,563,047     2,563,047

                                  $24,937,791   $24,937,791   $24,937,791

FUND BALANCE

Reserve for Investment in
General Fixed Assets              $24,937,791   $24,937,791   $24,937,791




                                                                            76
                                                                                                           H-2

BOROUGH OF OAKLAND
GENERAL FIXED ASSET ACCOUNT GROUP
STATEMENT OF CHANGES IN RESERVE FOR GENERAL FIXED ASSETS




                               Balance                                                        Balance
                             December 31,                                                   December 31,
                                2007            Additions       Retirements   Adjustments      2008

Land                         $ 9,854,476    $               -   $         -   $         -   $ 9,854,476
Buildings and Improvements     5,246,212                    -             -             -     5,246,212
Equipment                      7,274,056                    -             -             -     7,274,056
Construction in Progress       2,563,047                    -             -             -     2,563,047

                             $ 24,937,791   $               -   $         -   $         -   $ 24,937,791




                                                                                                           77
      BOROUGH OF OAKLAND

Comprehensive Annual Financial Report

          Statistical Section




                                        78
                                                                                                            J-1

BOROUGH OF OAKLAND
Adopted Budgets
(Unaudited)




                                    2008            2007           2006           2005           2004

       CURRENT FUND

REVENUES
Fund Balance                    $    445,000    $    290,000   $          -   $    700,000   $    725,000
Miscellaneous Revenues             4,068,754       3,817,348      4,692,111      3,872,836      4,327,255
Receipts From Delinquent Taxes       380,000         400,000        360,000        300,000        250,000
Amount to be Raised by Taxation   12,635,789      11,657,044     10,626,801      9,325,820      8,400,141
Total Revenues                  $ 17,529,543    $ 16,164,392   $ 15,678,912   $ 14,198,656   $ 13,702,396


APPROPRIATIONS
Within "CAPS":
 Operations:
   Salaries and Wages            $ 5,853,851    $ 5,086,656    $ 5,237,908    $ 5,214,615    $ 4,875,652
   Other Expenses                  6,256,925      6,399,253      3,804,524      2,925,107      2,653,857
 Deferred Charges                     46,168         99,866        484,129        494,215        392,466
 Statutory Expenditures              413,000        382,500              -              -              -
 Judgments                                 -              -              -              -              -
Excluded From "CAPS":
 Operations:
   Salaries and Wages                   4,025              -         35,000         45,000        176,270
   Other Expenses                   2,203,958      1,762,566      3,891,662      3,123,379      2,629,656
 Capital Improvements                 100,000        136,612        100,000        100,000        100,000
 Municipal Debt Service             1,158,251      1,575,785      1,183,821      1,166,237      1,224,495
 Deferred Charges                     887,843        146,000        430,000        130,000        100,000
 Reserve for Uncollected Taxes        605,522        575,154        511,868      1,000,103      1,550,000
Total Appropriations             $ 17,529,543   $ 16,164,392   $ 15,678,912   $ 14,198,656   $ 13,702,396
                                            -              -              -              -              -




                                                                                                            79
                                                                                                 J-1

BOROUGH OF OAKLAND
Adopted Budgets
(Unaudited)




                               2008          2007          2006          2005          2004

    WATER UTILITY FUND

REVENUES
Fund Balance Anticipated   $    35,000   $   235,000   $         -   $         -   $   350,000
Rents                        1,785,000     1,700,000     1,805,000     1,451,352     1,213,318
Deficit (General Budget)        25,000             -             -             -             -
Miscellaneous                   40,000        10,000        10,000       168,658        12,759
Total Revenues             $ 1,885,000   $ 1,945,000   $ 1,815,000   $ 1,620,010   $ 1,576,077


APPROPRIATIONS
Operations:
 Salaries and Wages        $   510,318   $   466,174   $   480,000   $   480,052   $   457,600
 Other Expenses                835,759       762,188       731,293       641,813       639,313
Capital Improvements                 -       100,000       100,000       100,000        81,754
Municipal Debt Service         479,195       467,181       456,540       356,145       355,410
Deferred Charges                14,728        54,457        10,367             -             -
Statutory Expenditures          45,000        45,000        36,800        42,000        42,000
Judgments                            -             -             -             -             -
Surplus (General Budget)             -        50,000             -             -             -
Deficit in Operations                -             -             -             -             -
Total Appropriations       $ 1,885,000   $ 1,945,000   $ 1,815,000   $ 1,620,010   $ 1,576,077
                                     -             -             -             -             -




                                                                                                 80
                                                                                                 J-1

BOROUGH OF OAKLAND
Adopted Budgets
(Unaudited)




                               2008          2007          2006          2005          2004

    SEWER UTILITY FUND

REVENUES
Fund Balance Anticipated   $    25,000   $         -   $    20,000   $    30,540   $         -
Rents                          340,000       325,000       283,000       284,136       285,981
Miscellaneous                        -             -             -         5,718         5,267
Deficit (General Budget)             -        50,000             -             -             -
Total Revenues             $   365,000   $   375,000   $   303,000   $   320,394   $   291,248


APPROPRIATIONS
Operations:
 Salaries and Wages        $    84,671   $   110,259   $   110,705   $   103,000   $    99,848
 Other Expenses                241,829       224,449       181,741       203,000       179,400
Capital Improvements                 -             -             -             -             -
Municipal Debt Service               -             -             -             -             -
Deferred Charges                     -        20,597         2,054             -             -
Statutory Expenditures          13,500        13,000         8,500        13,000        12,000
Surplus (General Budget)        25,000             -             -             -             -
Deficit in Operations                -         6,695             -         1,394             -
Total Appropriations       $   365,000   $   375,000   $   303,000   $   320,394   $   291,248




                                                                                                 81
                                                                                                      J-2

BOROUGH OF OAKLAND
Fund Balance Summary
(Unaudited)




                              2008            2007          2006          2005           2004

      CURRENT FUND

Fund Balance, Beginning   $     690,824 $      619,017 $    573,165   $   1,273,165 $    1,293,232
Generated Current Year        1,136,706        361,807       45,852               -        704,933
Utilized Current Year          (445,000)      (290,000)           -        (700,000)      (725,000)

Fund Balance, Ending      $   1,382,530   $   690,824   $   619,017   $    573,165   $   1,273,165



   WATER UTILITY FUND

Fund Balance, Beginning   $    343,150 $       528,981 $    462,702   $    125,253   $     364,556
Generated Current Year               -          49,169       66,279        337,449         110,697
Utilized Current Year          (35,000)       (235,000)           -              -        (350,000)

Fund Balance, Ending      $    308,150    $   343,150   $   528,981   $    462,702   $    125,253



   SEWER UTILITY FUND

Fund Balance, Beginning   $      27,695 $      16,867   $     36,867 $      51,643 $       51,643
Generated Current Year                -        10,828              -        15,764              -
Utilized Current Year           (25,000)            -        (20,000)      (30,540)             -

Fund Balance, Ending      $      2,695    $    27,695   $    16,867   $     36,867   $     51,643




                                                                                                      82
                                                                                                                      J-3

BOROUGH OF OAKLAND
Tax Levy and Collection Data
(Unaudited)




                                      2008             2007             2006             2005             2004

CURRENT YEAR % COLLECTION RATES

Current Tax Levy                $    50,362,212   $   48,406,730   $   45,556,641   $   42,275,231   $   39,644,108

Current Collections             $    49,907,149   $   48,024,958   $   45,132,501   $   41,779,757   $   39,157,974

Percentage of Collections            99.10%           99.21%           99.07%           98.83%           98.77%




DELINQUENT TAX %

Delinquent Taxes                 $     393,549    $     370,101    $     438,341    $     495,473    $     355,901
Tax Title Liens                         81,584           69,381           69,381           69,381           75,547
Total Delinquent                $      475,133    $     439,482    $     507,722    $     564,854    $     431,448

Tax Levy                        $    50,362,212   $   48,406,730   $   45,556,641   $   42,275,231   $   39,644,108

Percentage of Tax Levy               0.94%            0.91%            1.11%            1.34%            1.09%




PROPERTY ACQUIRED BY MUNICIPALITY FOR NON-PAYMENT OF TAXES

Recorded at - Assessed Valuation $    1,054,950   $    1,054,950   $    1,054,950   $    1,054,950   $    1,054,950




                                                                                                                      83
                                                                                                                                                                                                  J-4



BOROUGH OF OAKLAND
Assessed and County Equalized Valuation Data
(Unaudited)




                                                      2008                           2007                           2006                       2005**                            2004
                                         # of                           # of                           # of                           # of                          # of
             Description                Parcels          Value         Parcels          Value         Parcels          Value         Parcels         Value         Parcels          Value

NET VALUATIONS TAXABLE
Vacant Land                                193 $    44,786,500            193 $    45,082,600            203 $    50,027,500            198 $    57,551,100           259 $    29,915,900
Residential                               4413   2,135,944,700           4415   2,128,715,000           4410   2,120,500,400           4411   2,113,284,400          4376     936,779,700
Farm (Regular)                               4       3,578,600              4       3,578,600              4       3,578,600              5       4,855,200             7       2,609,900
Farm (Qualified)                             8          65,800              8          25,800              8          25,800              9          29,400            10          33,100
Commercial                                 140     173,664,700            140     172,988,100            140     174,877,400            139     174,470,800           140     102,739,300
Industrial                                  59     174,344,700             59     172,016,600             58     172,195,400             57     172,170,700            56     102,303,400
Apartments                                   0               -              0               -              0               -              0               -             0               -
   Sub-Total                              4817   2,532,385,000           4819   2,522,406,700           4823   2,521,205,100           4819   2,522,361,600          4848   1,174,381,300
Personal Property                                    4,422,455                      4,588,960                      3,708,659                      2,286,750                     2,594,717
  Net Valuations Taxable                         2,536,807,455                  2,526,995,660                  2,524,913,759                  2,524,648,350                 1,176,976,017

Bergen County Equalization Adjustment                   134,336,033                     77,560,134                   (134,660,402)                 (419,544,911)                   701,192,247

Bergen County Equalized Valuations                $ 2,671,143,488                $ 2,604,555,794                $ 2,390,253,357                $ 2,105,103,439               $ 1,878,168,264

Bergen County Equalization Ratio                              95.23%                         97.29%                        105.95%                      120.33%                          62.83%

Average Improved Residential Assessment           $          484,012             $          482,155             $          480,839             $        479,094              $          214,072

**Revaluation Year




                                                                                                                                                                                                  84
                                                                                                             J-5

BOROUGH OF OAKLAND
Tax Requirement and Rate Data
(Unaudited)




                            2008             2007             2006             2005**           2004

TAX REQUIREMENTS
County                  $    4,662,797   $    4,437,288   $    4,230,763   $    3,974,395   $    3,715,430
County Open Space              267,114          260,455          239,025          210,510          187,817
Local School                22,741,261       22,002,323       20,780,983       19,754,160       18,874,318
Regional High School         9,698,905        9,583,163        9,140,589        8,575,981        8,108,765
Municipal Open Space           253,681          252,500          252,500          252,500          117,700
Municipal                   12,635,789       11,657,044       10,626,801        9,325,821        8,400,141
 Total Tax Requirements $   50,259,547   $   48,192,773   $   45,270,661   $   42,093,367   $   39,404,171



TAX RATES
County                          0.184            0.176            0.168            0.157            0.316
County Open Space               0.011            0.010            0.010            0.010            0.010
Local School                    0.896            0.871            0.823            0.782            1.604
Regional High School            0.382            0.379            0.362            0.340            0.689
Municipal Open Space            0.011            0.010            0.010            0.010            0.010
Municipal                       0.499            0.464            0.427            0.371            0.721
 Total Tax Rates                 1.98             1.91             1.80             1.67             3.35

**Revaluation Year




                                                                                                             85
                                                                                                                       J-6

BOROUGH OF OAKLAND
Ratio of Gross and Net Debt to County Equalized Value and Debt Per Capita
(Unaudited)




                                  2008              2007              2006              2005              2004

Population                           13,312            13,315            13,331            13,459            13,548

County Equalized Valuation $ 2,671,143,488     $ 2,604,555,794   $ 2,390,253,357   $ 2,105,103,439   $ 1,878,168,264

Gross Debt                    $   26,642,370   $   24,136,982    $   24,345,195    $   20,914,805    $   23,749,548

Gross Debt Per Capita         $        2,001   $        1,813    $        1,826    $        1,554    $        1,753

Ratio of Gross Debt to
County Equalized Valuations            1.00%            0.93%             1.02%             0.99%             1.26%

Net Debt                      $   17,028,550   $    8,531,044    $   12,154,742    $   14,837,647    $   11,599,549

Ratio of Net Debt to
County Equalized Valuations            0.64%            0.33%             0.51%             0.70%             0.62%

Net Debt per Capita           $        1,279   $           641   $           912   $        1,102    $           856




                                                                                                                       86
                                                                                                                        J-7

BOROUGH OF OAKLAND
Legal Debt Margin
(Unaudited)




                                          2008             2007            2006            2005            2004

Equalized Valuation Basis (State)     $ 2,665,957,743 $ 2,540,298,167 $ 2,346,571,678 $ 2,105,378,877 $ 1,872,415,959

Municipal Borrowing Power:
3 1/2% of Equalized Valuation Basis   $   93,308,521 $    88,910,436 $    82,130,009 $    73,688,261 $     65,534,559
Net Debt                                  17,028,550       8,531,044      12,154,742      14,837,647       11,599,549
Remaining Borrowing Power             $   76,279,971 $    80,379,392 $    69,975,267 $    58,850,614 $     53,935,010

School Borrowing Power:
3% of Equalized Valuation Basis       $   79,978,732 $    76,208,945 $    70,397,150 $    63,161,366 $     56,172,479
Net School Debt                            9,534,279       8,695,615       8,796,453       6,077,158        6,551,109
School Borrowing Margin Available     $   70,444,453 $    67,513,330 $    61,600,697 $    57,084,208 $     49,621,370




                                                                                                                        87
                                                                                                                              J-8


BOROUGH OF OAKLAND
Direct and Overlapping Debt
(Unaudited)




                                     2008               2007              2006               2005              2004

DIRECT DEBT
Municipal Debt                 $     17,028,550   $      8,531,044   $     12,154,742   $    14,837,647   $     11,599,549
Local School Debt                     3,750,000          2,733,000          2,733,000                 -                  -
Regional School Debt                  5,784,279          5,962,615          6,063,453         6,077,158          6,551,109
                               $     26,562,829   $     17,226,659   $     20,951,195   $    20,914,805   $     18,150,658
                                              -                  -                  -                 -                  -

OVERLAPPING DEBT
County of Bergen               $     16,097,574   $     16,425,135   $     12,796,765   $    12,450,935   $     10,032,493




(1) County Debt:

Municipal Equalized Valuations    $ 2,671,143,488 $ 2,604,555,794 $ 2,390,253,357 $ 2,105,103,439 $ 1,878,168,264
Total County Equalized Valuations $ 182,767,512,263 $ 172,863,500,734 $ 153,984,695,626 $ 136,528,998,442 $ 121,601,699,827
                                              1.46%             1.51%             1.55%             1.54%             1.54%
X's Outstanding County Debt           1,102,573,565     1,087,757,268       825,597,736       808,502,305       651,460,590
                                  $      16,097,574 $      16,425,135 $      12,796,765 $      12,450,935 $      10,032,493




                                                                                                                              88
                                                                                                                         J-9

BOROUGH OF OAKLAND
Ratio of Annual Debt Service Appropriations to Total Adopted Current Fund Appropriations
(Unaudited)




                                        2008             2007             2006             2005             2004

Serial Bonds:
 Principal                          $     875,000    $    1,063,000   $     860,000    $     820,000    $     785,000
 Interest                                 261,960           300,495         227,530          263,446          298,204
Notes:
 Principal                                       -               -                -                -          100,000
 Interest                                        -         191,000           75,000           61,500           20,000
Loans:
 Principal                                  19,958           19,564           19,179           18,801           18,430
 Interest                                    1,333            1,726            2,112            2,490            2,861
                                    $    1,158,251   $    1,575,785   $    1,183,821   $    1,166,237   $    1,224,495

Total Current Fund
Budget Appropriations               $   17,529,543   $   16,164,392   $   15,678,913   $   14,198,656   $   13,702,396

Ratio of Debt Service to
Current Fund Budget Appropriation       6.61%            9.75%            7.55%            8.21%            8.94%




                                                                                                                         89
                                                                                                                        J-10

BOROUGH OF OAKLAND
Demographic Statistics
(Unaudited)




                                              2008*            2007           2006              2005          2004

Average Labor Force Estimates by Municipality:
 Labor Force                                       7,250         7,220            7,241           7,155         7,058
 Employment                                        7,011         7,037            7,036           6,959         6,847
 Unemployment                                        239           182              205             196           212
 Unemployment Rate                                  3.3%          2.5%             2.8%            2.7%          3.0%



Per Capital Personal Income - Bergen Cty. $       67,125   $    67,125    $     62,007    $      56,877   $    54,288




                                                                      Estimates as of July 1,
Subcounty Population Estimates:
 Oakland BORO                                     13,312        13,315          13,331           13,459        13,548
 County of Bergen                                894,840       890,064         888,834          890,237       892,429

* Latest Data Available




                                                                                                                         90
                                                                                        J-11

BOROUGH OF OAKLAND
Ten Largest Taxpayers by Assessment
(Unaudited)




                                                                      As a Percent of
                                                          2008            Total Net
                                                        Assessed         Valuations
                           Taxpayer                     Valuation     $ 2,536,807,455

   1   Washington Square Owner, LLC                 $    16,100,000       0.63%
   2   Jayare Associates, LLC                            14,035,900       0.55%
   3   40 Potash Road Associates, LLC                    13,688,900       0.54%
   4   Shiseido America, Inc.                            12,766,900       0.50%
   5   Oakland Care Ctr Real Estate Co., LLC             10,750,800       0.42%
   6   5 Thorton Road Associates, LLC                    10,203,700       0.40%
   7   The Realty Associates Fund VII, L.P.               9,900,000       0.39%
   8   PSEG Services Corp. - Corp. Property Dept.         7,611,800       0.30%
   9   Ramapo Valley Resources, LTD.                      6,864,100       0.27%
  10   Bi-County Development Corp. - 4 Properties         6,305,100       0.25%

                                                    $ 108,227,200         4.27%




                                                                                         91
                                                                                                      J-12

BOROUGH OF OAKLAND
Value of New Construction, Improvements, Alterations and Demolitions
(Unaudited)




                         2008            2007            2006            2005            2004

# of Permits Issued             761             806             965             980             976

Value of Construction $ 13,495,793    $ 9,569,674     $ 17,246,498    $ 19,235,756    $ 16,063,955




                                                                                                       92
      BOROUGH OF OAKLAND

Comprehensive Annual Financial Report

         Single Audit Section




                                        93
                                                                                          K-1

Di Maria & Di Maria LLP
Public Accountants & Consultants


                                                                    245 Union Street
                                                             Lodi, New Jersey 07644
                                                                 Voice 973.779.6890
                                                             Facsimile 973.779.6891
                                                          www.dimariaanddimaria.com




Report on Compliance and on Internal Control Structure Over Financial
Reporting Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards


Honorable Mayor and Members of the Borough Council
Borough of Oakland, County of Bergen, New Jersey

We have audited the financial statements of the Borough of Oakland in the County of
Bergen, State of New Jersey, as of and for the years ended December 31, 2008 and
2007, and have issued our report thereon dated June 30, 2009. Our report disclosed
that, as described in Note 1 to the financial statements on a basis of accounting
prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey, that demonstrates compliance with a modified accrual
       ,                      y,                     p
basis and the budget laws of the State of New Jersey, which is a comprehensive basis
of accounting other than generally accepted accounting principles. We conducted our
audit in accordance with generally accepted auditing standards, 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 Division of Local Government Services, Department of Community Affairs, State of
New Jersey.

Compliance

As part of obtaining reasonable assurance about whether the Borough's financial
statements are free of material misstatement, we performed tests of it's compliance
with certain provisions of laws, regulations, contracts, and grants, 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 instances of noncompliance that are
required to be reported under Government Auditing Standards which are described in
the accompanying schedule of findings and questioned costs.




                                                                                          94
                                                                                              K-1

Di Maria & Di Maria LLP



Report on Compliance and on Internal Control Structure Over Financial
Reporting Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards (Continued)


Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Borough's internal control over
financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over
financial reporting that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We believe the lack of maintaining a
General Fixed Asset accounting system to be a material weakness.

This report is intended solely for the information and use of the Borough's
management, and council members, others within the organization, the Division of
                      Services,
Local Government Services and federal and state awarding agencies and pass       pass-
through entities, and is not intended to be and should not be used by anyone other than
these specific parties.


DI MARIA & DI MARIA LLP
Public Accountants and Consultants



Frank R. Di Maria

Frank R. DiMaria
Registered Municipal Accountant
RMA No. CR00463

June 30, 2009




                                                                                              95
                                                                                                                                                                                                                                                                              K-3
                                                                                                                                                                                                                                                                       Schedule A




BOROUGH OF OAKLAND
SCHEDULE OF EXPENDITURES OF FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 2008


                                                                                                                                                                                                                                             (Accounts     Deferred      Due to
                                                     Federal                                          State                                      Balance                                                                       Repayment of Receivable)    Revenue     Grantor at
                                                     C.F.D.A.                                        Project        Award       Grant Period   December 31,      Carryover            Cash           Budgetary                  Prior Years December 31, December 31, December 31,
Catalog of Federal Domestic Assistance Program Title Number         State Aid/Grant Program Titles   Number         Amount     From       To      2007            Amount             Received       Expenditures   Adjustments   Balances      2008         2008         2008

Federal and State Grant Fund

State of N.J., Department of Law and Public Safety --
Body Armor Replacement Program                                     Body Armor Replacement Program               $      1,900 01/01/05 12/31/05 $     (1,900) $               -   $              -   $          -   $    1,900   $         -   $       -   $        -     $          -




*Expenditures less than $500,000; U.S. Office of Management and Budget (OMB) Circular A-133 Audit not applicable.




       See Accompanying Notes to Schedules of Federal and State Financial Assistance.                                                                                                                                                                                         96
                                                                                                                                                                                                                                                       K-4
                                                                                                                                                                                                                                                Schedule B




BOROUGH OF OAKLAND
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
Year Ended December 31, 2008



                                                                                                                                                                                                                  (Accounts     Deferred      Due to
                                                                                                                      Balance                                                                       Repayment of Receivable)    Revenue     Grantor at
                                                     Grant or State           Award             Grant Period        December 31,    Carryover            Cash         Budgetary                      Prior Years December 31, December 31, December 31,
          State Grantor / Program Title              Project Number           Amount         From          To          2007          Amount             Received     Expenditures    Adjustments      Balances      2008         2008         2008

State of N.J., Department of Community Affairs --
Consolidated Municipal Property Tax Relief Aid          082-495-6020      $    329,232     01/01/08      12/31/08   $         - $               -   $     329,232 $      (329,232)   $         - $            -   $        -   $        -   $          -
Legislative Initiative Municipal Block Grant            022-495-6020                 -     01/01/08      12/31/08             -                 -               -               -              -              -            -            -              -
Homeland Security Grant                                 022-100-6020            70,000     01/01/08      12/31/08             -                 -          70,000         (70,000)             -              -            -            -              -
LEA Rebates                                             022-100-6120                 -     01/01/08      12/31/08             -                 -          29,253         (29,253)             -              -            -            -              -
Municipal Property Tax Assistance                                                    -     01/01/08      12/31/08             -                 -               -               -              -              -            -            -              -
Recreation Opportunities for Individuals With Disabilities                       2,402     01/01/07      12/31/07         2,402                 -           2,389               -         (4,791)             -            -            -              -
Smart Growth Grant                                                              45,000     01/01/05      12/31/05        45,000                 -               -               -        (45,000)             -            -            -              -

State of N.J., Department of Treasury --
Energy Receipts Tax                                   082-100-6020            1,152,451    01/01/08      12/31/08             -                 -        1,152,451     (1,152,451)             -              -            -            -              -
Supplemental Energy Receipts Tax                      082-100-6020              210,101    01/01/08      12/31/08             -                 -          210,101       (210,101)             -              -            -            -              -
Veterans & Senior Citizens                            082-495-6020              150,195    01/01/08      12/31/08             -                 -          150,195       (150,195)             -              -            -            -              -

State of N.J., Department of Environmental Protection --
Clean Communities Program                          042-4900-765-004             15,724  01/01/08         12/31/08   $         - $               -   $      15,724 $             -    $         - $            -   $        -   $   15,724 $            -
Clean Communities Program                          042-4900-765-004             12,363  01/01/07         12/31/07        12,363                 -               -               -              -              -            -       12,363              -
Clean Communities Program                          042-4900-765-004                351  01/01/06         12/31/06           351                 -               -               -              -              -            -          351              -
Clean Communities Program                          042-4900-765-004             15,238  01/01/03         12/31/03         4,618                 -               -          (3,420)             -              -            -        1,198              -
DEP Trail Cleanup Grant                                                          9,887  01/01/03         12/31/03         9,887                 -               -               -         (9,887)             -            -            -              -
DEP Trail Cleanup Grant - Local                                                  3,750  01/01/03         12/31/03         3,750                 -               -               -         (3,750)             -            -            -              -
GIS Grant                                                                        1,875  01/01/03         12/31/03         1,875                 -               -               -         (1,875)             -            -            -              -
Municipal Stormwater                                                             2,552  01/01/04         12/31/04        (2,552)                -           2,552               -              -              -            -            -              -
Municipal Stormwater                                                             7,655  01/01/06         12/31/06         7,655                 -               -               -         (7,655)             -            -            -              -
Municipal Stormwater                                                               578  01/01/06         12/31/06           293                 -               -               -           (293)             -            -            -              -
Municipal Stormwater                                                                    01/01/08         12/31/08             -                 -           2,552               -         (2,552)             -            -            -              -
Recycling Tonnage Grant                              042-752-6020               10,090 Non-Expiring                           -                 -           9,672               -              -              -            -        9,672              -
Recycling Tonnage Grant                              042-752-6020                8,381 Non-Expiring                       6,668                 -               -          (4,670)             -              -            -        1,998              -
Recycling Tonnage Grant                              042-752-6020               10,090 Non-Expiring                      10,090                 -               -               -              -              -            -       10,090              -

State of N.J., Department of Law and Public Safety --
Body Armor Replacement Program                     066-1020-718-001              2,174    Non-Expiring                    2,174                 -               -               -              -              -            -        2,174              -
Body Armor Replacement Program                     066-1020-718-001              2,676    Non-Expiring                        -                 -           2,676               -              -              -            -        2,676              -
Body Armor Replacement Program                     066-1020-718-001              2,447    Non-Expiring                    1,974                 -               -               -              -              -            -        1,974              -
Body Armor Replacement Program                     066-1020-718-001              2,732    Non-Expiring                    2,732                 -               -          (2,335)             -              -            -          397              -
State Legislative Grant - Public Safety                                            313    Non-Expiring                      313                 -               -               -           (313)             -            -            -              -
Drunk Driving Enforcement Fund                                                   4,026     01/01/08      12/31/08             -                 -           4,026            (317)             -              -            -        3,709              -
Over The Limit Under Arrest                                                      3,234     01/01/08      12/31/08             -                 -           3,234               -         (3,234)             -            -            -              -




      See Accompanying Notes to Schedules of Federal and State Financial Assistance.                                                                                                                                                                   97
                                                                                                                                                                                                                                                   K-4
                                                                                                                                                                                                                                            Schedule B




BOROUGH OF OAKLAND
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
Year Ended December 31, 2008



                                                                                                                                                                                                               (Accounts     Deferred      Due to
                                                                                                                    Balance                                                                      Repayment of Receivable)    Revenue     Grantor at
                                                     Grant or State         Award             Grant Period        December 31,    Carryover            Cash        Budgetary                      Prior Years December 31, December 31, December 31,
          State Grantor / Program Title              Project Number         Amount         From          To          2007          Amount             Received    Expenditures    Adjustments      Balances      2008         2008         2008

State of N.J., Department of Transportation --
N.J. Motor Vehicle Police Fees                                                112,000    01/01/07     12/31/07          (6,256)               -           9,333         (3,077)             -              -              -          -             -
N.J. Motor Vehicle Police Fees                                                112,000    01/01/06     12/31/06         (18,667)               -               -              -         18,667              -              -          -             -
N.J. Motor Vehicle Police Fees                                                112,000    01/01/08     12/31/08               -                -         112,000       (103,970)             -              -              -      8,030             -
Municipal Aid                                                                 150,000    01/01/08     12/31/08               -                -               -       (148,541)             -              -       (150,000)     1,459             -

State of N.J., Department of State --
Per Capita Library State Aid                          100-074-6010             10,113 Non-Expiring                           -                -          10,113        (10,113)             -              -              -          -             -

State of N.J., Department of Human Services --
 Passed thru the County of Bergen --
Municipal Alliance on Alcoholism & Drug Abuse                                  11,500    01/01/03     12/31/03           8,544                -               -         (8,544)             -              -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                   3,990    01/01/04     12/31/04          (3,990)               -           3,990              -              -              -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                  11,500    01/01/05     12/31/05               -                -               -              -              -              -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                   3,446    01/01/06     12/31/06          (3,377)               -               -              -          3,377              -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                   2,427    01/01/06     12/31/06           2,177                -               -         (1,614)          (563)             -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                  11,500    01/01/07     12/31/07          (6,809)               -               -              -          6,809              -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                   2,875    01/01/07     12/31/07           2,875                -               -              -         (2,875)             -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                  11,500    01/01/08     12/31/08               -                -          11,500         (9,717)        (1,783)             -              -          -             -
Municipal Alliance on Alcoholism & Drug Abuse                                   2,875    01/01/08     12/31/08               -                -           2,875              -         (2,875)             -              -          -             -

                                                                                  Total State Financial Assistance $   84,090 $               -   $    2,133,868 $ (2,237,550)    $   (58,593) $           -   $   (150,000) $   71,815 $          -

*Expenditures less than $500,000; N.J. Office of Management and Budget (OMB) Circular 04-04 Audit not applicable.




      See Accompanying Notes to Schedules of Federal and State Financial Assistance.                                                                                                                                                               98
                                                                                                            K-5

BOROUGH OF OAKLAND
NOTES TO SCHEDULES OF STATE AND FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 2008


Note 1 - General

The accompanying schedules of expenditures of federal awards and state financial assistance include
federal and state award activity of the Borough of Oakland, County of Bergen, State of New Jersey.
The Borough of Oakland is defined in Note l to the basic financial statements. All federal and state
awards 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 basic financial statements. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of, the basic financial statements.


Note 3 - Relationship to General-Purpose Finacial Statements

Organization
The Borough of Oakland, New Jersey is the prime sponsor and recipient of various federal and state
grant funds. The Borough has delegated the general administration of grant programs and the
reporting function to the Borough Treasurer. Substantially all grant and program cash funds are
commingled with the Borough's other funds, although each grant is accounted for separately within the
Borough's financial records. The Borough Treasurer's office performs accounting functions for all
grants.

Basis of Accounting
The Borough's grants are presented on the modified accrual basis of accounting utilizing the following
methods:

Current Fund Grants -
In accordance with a directive from the State Department of Community Affairs, Division of Local
Government Services, all grant revenues and expenditures are fully realized within the current fund
budget and corresponding receivables and spending reserves are recorded to account for grant
activity.

Trust Fund and Capital Fund Grants -
In accordance with accounting principles prescribed by the State of New Jersey, grant receivables are
offset with grant spending reserves.

Local Contributions
Local matching contributions are raised in the current fund budget. The percentage of matching
contributions varies with each program. Local and state shares of grants are reflected in total on the
Schedule of State Financial Assistance.




                                                                                                            99
                                                                                                       K-5

BOROUGH OF OAKLAND
NOTES TO SCHEDULES OF STATE AND FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 2008



Note 3 - Relationship to General-Purpose Finacial Statements (continued)

Expenditures
Expenditures, as reported on the accompanying schedules of federal and state grants, reflect actual
cash disbursements charged directly to a grant program and, in certain instances, do not include
allocated expenses or accrued expenses. Differences between budget and actual cash disbursements,
as well as differences between budget revenues and actual cash receipts, are transferred to current
fund balance when the grant is closed out.

Expenditures per Financial Reports
Expenditures, as reported on the accompanying schedules of federal and state grants, reflect the sum
of all expenditures including allocated expenses and accrued expenses reported to the grant funding
agency from January 1, 2008 to December 31, 2008.



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 - Federal and State Loans Outstanding

The municipality did not have any federal and state loans outstanding at of December 31, 2008.

Note 6 - Contingencies

Each of the grantor agencies reserve the right to conduct additional audits of the Borough's grant
programs for economy, efficiency and program results.




                                                                                                       100
                                                                                            K-6

BOROUGH OF OAKLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2008


Section I -- Summary of Auditors' Results

Financial Statements

A) Type of auditors' report issued:                 Unqualified

B) Internal control over financial reporting:

    1.   Material weakness(es) identified?              X         yes       no

    2.   Reportable condition(s) identified that are
         not considered to be material weakness(es)?              yes   X   none reported

C) Noncompliance material to financial statements
   noted?                                                         yes   X   no




                                                                                            101
                                                                                                     K-6

BOROUGH OF OAKLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2008


Section I -- Summary of Auditors' Results (Continued)

Federal Awards

                     **NOT APPLICABLE - EXPENDITURES UNDER $500,000**

A) Internal control over major programs:

    1.   Material weakness(es) identified?                     yes                   no

    2.   Reportable condition(s) identified that are
         not considered to be material weakness(es)?           yes                   none reported

B) Type of auditors' report issued on compliance
   for major programs:

C) Any audit findings disclosed that are required
   to be reported in accordance with
   section 510(a) of Circular A-133?                           yes                   no

D) Identification of major programs:

             CFDA Number(s)                         Name of Federal Program or Cluster




E) Dollar threshold used to distinguish between
   type A and type B programs:

F) Auditee qualified as low-risk auditee?                      yes                   no




                                                                                                     102
                                                                                                       K-6

BOROUGH OF OAKLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2008


Section I -- Summary of Auditors' Results (Continued)

State Awards

                     **NOT APPLICABLE - EXPENDITURES UNDER $500,000**

A) Internal control over major programs:

    1.   Material weakness(es) identified?                     yes                     no

    2.   Reportable condition(s) identified that are
         not considered to be material weakness(es)?           yes                     none reported

B) Type of auditors' report issued on compliance
   for major programs:

C) Any audit findings disclosed that are required
   to be reported in accordance with
   NJ OMB Circular Letter 98-07?                               yes                     no

D) Identification of major programs:

             Program Number(s)                      Name of State Program or Cluster




E) Dollar threshold used to distinguish between
   type A and type B programs:

F) Auditee qualified as low-risk auditee?                      yes                     no




                                                                                                       103
                                                                                                           K-6

BOROUGH OF OAKLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2008


Section II -- Financial Statement Findings

1.   The Chief Financial Officer did not implement and maintain a general fixed asset accounting system.
            Technical Accounting Directive #85-02




                                                                                                           104
                                                                       K-6

BOROUGH OF OAKLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2008


Section III -- Federal and State Award Findings and Questioned Costs

Current Year

Federal Awards:

    There were no findings or questioned costs identified.

State Awards:

    There were no findings or questioned costs identified.


Prior Year

Federal Awards:

    There were no prior year findings or questioned costs.

State Awards:

    There were no prior year findings or questioned costs.




                                                                       105
                                                                           K-7

BOROUGH OF OAKLAND
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended December 31, 2008




1.   There were instances of expenditures made creating deferred charges
     to budgets of succeeding years for the following:
       Deficit in Animal Control Fund
       Expenditures without Appropriation
       Overexpenditures of Appropriations

     Status - Corrected




                                                                           106
          BOROUGH OF OAKLAND

    Comprehensive Annual Financial Report

General Comments and Recommendations Section




                                               107
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Cash Cycle                                                                             Ref.

Chief Financial Officer

Significant delays were noted in reconciling the Employee Health Benefits (old) bank    #2
account.




                                                                                              108
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Revenues Cycle                                                                        Ref.

Municipal Court

The Municipal Court Administrator issued manual receipts when the ATS system was      #10
available.*

There were tickets over six (6) months old that have not been issued with regard to   #11
traffic tickets.

There were instances of "Tickets Not Assigned" with regard to traffic tickets.        #12

A difference of $1,750 exists between the Monthly Bail Cash Book (Bail on Account)    #13
and the bank balance.

A unidentified balance of $187.90 exists in the General Account.                      #14

Deposits were not made within 48 hours of receipt.                                    #15

The cash balance in the municipal court Bail Account was not reconciled to the        #16
balance reflected in the ACS Criminal Bail System.


The cash balance in the municipal court General Account was not reconciled to the     #17
balance reflected in the ATS Cashbook System.




                                                                                             109
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Expenditures Cycle                     Ref.

None




                                              110
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Payroll Cycle                                                              Ref.

Net payroll and agency accounts were not maintained on an imprest basis.    #3




                                                                                  111
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Other Significant Matters                                                                Ref.

The Chief Financial Officer did not clear interfund balances on the various fund          #4
balance sheets prior to year end.

Not all Trust Accounts were maintained in accordance with State Regulations               #5
regarding Dedications by Rider.


The Chief Financial Officer did not maintain any record of operating lease obligations    #6
committed by the Borough.

The Chief Financial Officer did not maintain any record of compensated absences           #7
accrued or paid.

Recreation program equipment/uniform deposits are received and not remitted to the        #9
Borough.




                                                                                                112
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Water Utility                                                                           Ref.

It is suggested that rate increases be implemented as early as possible in the fiscal   N/A
year in order to maximize revenue collections, and keep rates consistent throughout
the fiscal year.

There were a significant number of billing errors, and unnecessary estimated             #8
readings noted during the fiscal year.




                                                                                               113
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Sewer Utility                                                                           Ref.

It is suggested that rate increases be implemented as early as possible in the fiscal   N/A
year in order to maximize revenue collections, and keep rates consistent throughout
the fiscal year.




                                                                                               114
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




      Recommendations

1.    That the Chief Financial Officer implement and maintain a fixed asset
      accounting system in accordance with Technical Accounting Directive #85-02.*

2.    That the Chief Financial Officer ensure the Employee Health Benefits (old)
      bank account be reconciled promptly after month-end.*
3.    That the Chief Financial Officer ensure net payroll and agency accounts are
      maintained on an imprest basis.*
4.    That the Chief Financial Officer ensure interfund balances be cleared prior to
      year-end.*
5.    That the Chief Financial Officer maintain all Trust Accounts in accordance with
      State Regulations regarding Dedication by Rider.*
6.    That the Chief Financial Officer ensure the maintenance of a centralized
      record of operating leases.*
7.    That the Chief Financial Officer ensure the maintenance of a centralized
      record of compensated absences accrued and used.*
8.    That control procedures be implemented to avoid water utility billing errors and
      unnecessary estimated readings.
9.    The the practice of receiving and holding equipment/uniform deposits for
      recreation programs be discontinued.
10.   That the Municipal Court Administrator be prohibited from issuing manual
      receipts except when the ATS system is off-line and unavailable in accordance
      with Municipal Court Administrative Procedures.*
11.   That the Municipal Court Administrator recall all tickets over six (6) months old
      and reissue new tickets in place thereof in accordance with Municipal Court
      Administrative Procedures.
12.   That the Municipal Court Administrator clear all "Tickets Not Assigned" in
      accordance with Municipal Court Administrative Procedures.
13.   That the $1,750 difference between the Monthly Bail Cash Book (Bail on
      Account) and bank balance be identified and properly adjusted.
14.   That the $187.90 unidentified cash receipt in the General Account be identified
      and turned over to the Current Account.
15.   That all deposits be made within 48 hours of receipt.
16.   That the Municipal Court Administrator reconcile the cash balance in the
      municipal court Bail Account to the ACS Criminal Bail System; and any
      unidentified balance be remitted to the Current Fund.
17.   That the Municipal Court Administrator reconcile the cash balance in the
      municipal court Operating Account to the ATS Cashbook System; and any
      unidentified balance be remitted to the Current Fund.


                                                                                          115
BOROUGH OF OAKLAND
GENERAL COMMENTS AND RECOMMENDATIONS
Year Ended December 31, 2008




Status of Prior Years' Recommendations

A review was made of all prior year's recommendations, and corrective action was
taken on all with the exception of those denoted with an asterisk.


The synopsis of this report, together with the recommendations must be published as
required by statute. We wish to express our appreciation of the assistance and
courtesies extended by the Municipal Officials during the course of the audit.


DI MARIA & DI MARIA LLP
Public Accountants and Consultants

Frank R. Di Maria
Frank R. Di Maria
Registered Municipal Accountant
RMA No. CR00463

June 30, 2009




                                                                                  116

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:2/8/2013
language:English
pages:121