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NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
(A Component Unit of the State of New Jersey)
Agreed Upon Procedures Bond Resolutions Report
June 30, 2012
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
(A Component Unit of the State of New Jersey)
Table of Contents
June 30, 2012
Page Nwnber
INDEPENDENT AUDITORS' REPORT...................
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREEIFUPON PROCEDURES.......................................................................................................................
2-3
DEBT SERVICE RESERVE FUNDS REQUIRED BALANCES....
1MERCAdIEN, RC. (. I i i
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of the New Jersey Environmental Infrastructure Trust
We have audited, in accordance with auditing standards generally accepted in the United States of America, the balance sheet of the New Jersey Environmental Infrastructure Trust (the "Trust"), a component unit of the State of New Jersey, as of June 30, 2012, and the related statements of revenues, expenses and changes in net assets and cash flows for the year then ended and have issued our report thereon dated October 23, 2012.
In connection with our audit, no knowledge of any default in the fulfillment of any of the terms, covenants or provisions of the various Bond Resolutions of the Trust was obtained, except for the matter discussed in Note Ito the financial statements, or that the balance in the Trust's debt service reserve fund failed to meet the debt service reserve requirement. As discussed in Note I, an event of default on the part of one of the Trust's borrower's currently exists under the terms of the indenture pursuant to which the Trust issued its Environmental Infrastructure Revenue Bonds (Bergen County Improvement Authority-En Cap Golf Holdings, LLC Project), Series 2005 (the "NJEIT-En Cap Bonds"). However, our audit was not directed primarily toward obtaining knowledge of such noncompliance.
This report is intended solely for the information and use of the Board of Directors, audit committee, management of the New Jersey Environmental Infrastructure Trust
AU INDEEHDENFLY OVNEC M(N8ER. and US Bank and is not intended to be and should not be used by anyone other than MCE.AOREY ALLIVIsCE these sDecified parties.
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P.O. Box 7648 • Princeton. NJ 08543-7648 • 609689.971)0 • Fsx 609.689.9720
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INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
To the Board of Directors of the New Jersey Environmental Infrastructure Trust
We have performed the procedures enumerated below, which were agreed to by the management of the New Jersey Environmental Infrastructure Trust (the "Trust"), solely to assist you in evaluating management's assertion that the Trust complied with Section 8.04 of the Trust's Bond Resolutions with US Bank, for the year ended June 30, 2012. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
Procedures
We obtained the Trust's schedule of Debt Service Reserve Funds - Required Balances as of June 30, 2012, which is attached.
We obtained the detailed general ledger for the year ended June 30, 2012, and traced the required debt service reserve funds balances per the schedule to the general ledger without exception.
We then traced the debt service reserve funds - required balances by bond issue and RN INDEPENDEMLY OwIILO MEMB year to the required principal balances per the official statements by bond issue MCGLADREY ALLIANCE without exception. .MEFICM INE1WIE OF
CBp.nF ED PUBLIC COUNT&N1S
tEW JERSEY Soc'EH OF
CEPMIED PUBLIC CCOUN1KRTS
EW YORK SOcIEH OF
CYRTIB IE PUBL:C 4CCCNTAN1S
PEHI1SYt'ANIA ITSTIIUIE OF
We obtained the detailed general ledger for the year ended June 30, 2012, and prepared a schedule of the debt service reserve funds account balances by bond issue. The balances listed per this schedule were then traced to the trustee bank account statements by bond issue as of June 30, 2012, and supporting detail for unrecorded accrued interest earned without exception.
CERnF ED PUBLIC CCOU WRITS
•ICPA'S PRATE CC ES 'RACTICE We compared the debt service reserve funds account balances in the previous
SEION paragraph with the debt service reserve funds - required balances in order to
• ICPNs CEWER FOR AUDIT OURLILY determine whether the Debt Service Reserve Funds account balances meet the Debt
• REGSR(D HE PCAO Service Reserve Requirements.
P.O. Box 7648 • Pnnceton, NJ 08543-7648 • 609.689.9700 • Fx 609.689.9720
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INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES (CONTINUED)
Finding
We deterwirted that the Debt Service Reserve Funds account balances met or exceeded the Debt Service Reserve Requirements as of June 30, 2012.
We were not engaged to and did not perform an examinalion, the objective of which would be the expression of an opinion on manaemenVs assertion that the New Jersey Enviromnental Infrastructure Trust complied with Section 8.04 of the Trust's Bond Resolutions w'ith US Bank, for the year ended June 30, 2012. Accordingly. we do not express such an opinion. Had we performed additionai procedures, other matters might have come to out attention that would have been reported to you.
This report is intended solely for the information and use of the Board of Directors, Audit Committee, and management of the New Jersey Environmental Infrastructure Trust and US Bank, and is not intended to be and should not be used by anyone other than these specified parties.
4 w —pc Lktt Lez &cnmtadt
October 23, 2012
2006 2006A NSRF 2006A cwSRF 2006A DWSRF 20063 CWSRF 200613 DWSRF
2007 2007A 200713 20070 2007D 2008
2008A
527,215 9,683,463 2,57,466 1,590,389
133.680
NONE REQUIRED NONE REQUIRED NONE REQUIRED
NONE REQUiRED
2009 2009A NONE REQUIRED 2009B NONE REQUIRED
2010 201 OA NONE REQUIRED 20 lOB NONE REQUIRED 20100 NONE REQUIRED
2011 2011A NONE REQUIRED 2011B NONE REQUIRED 2011C NONE REQUiRED
202
201 2A NONE REQUIRED
20128 NONE REQUIRED
2012C NONE REQUIRED
New Jersey Environmental Infrastructure Trust Debt Service Reserve Funds
Required Balances June 30,2012
YEAR! REQUIRED ISSUE BALANCE
2004 2004A NSRF $ 92777 2004A CWSRF 8,405,890 2004A DWSRF 1,267,958 200413 CWSRF 357,669 200413 DWSRF 1,157,631
2005 200SANSRP 480,765 2005k CWSRF 7,369,436 2005k DWSRF 1,963,287 2005D CWSRF 197,547 2005B DWSRF 57,339
YEAR! REQUIRED ISSUE - BALANCE
1993 1993 $ 5,452,440
1994 I 994A 1.599,766 1994B 2,636,160
1995 1995A NSRF 730,000 1995A SRF 2,115,830 19958 215,750
1996 1996A 3,795170 19968 417,894
1997 1997 NSRF 379,087 1997 SRF 2,699,367
1998 1998A NSRF 369,608 1998A CWSRF 2,592,829 1998A DWSRF 950,910
1999 I999ANSRF 536,017 1999A CWSRF 2,632,028 1999A DWSRF 1, 520,64%
2000
2000A CWSRF 5,926,298 2000A DWSRF 1,659,963 200B CWSRF 413,212
2001 200 IA NSRF 3,Ofl,890 2001,\ CWSRF 7520,637 200 IA DWSRF 1,522,923 200113 CWSRF 706,967 200113 DWSRF 1,724,533 2001C CWSRF 122,125
2002 2002A NSRF 491,498 2002A CWSRF 5,620993 2002A DWSRF 1,541,021
2003 2003A CWSRF 3,988,907
2003k DWSRF 1,631,441
GRAND TOTAL ALL ISSUES
Report put together from bond official statements received from client.
99988524
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