BOROUGH OF CORNWALL,PENNSYLVANIA  PRIMARY GOVERNMENT BASIC FINANCIALSTATEMENTS DECEMBER31,2021    BOROUGH OF CORNWALL, PENNSYLVANIA  MANCALSTATEMIENTS DECEMBER31,2021 TABLE OF CONTENTS  PAGEN NO. 1-3 4 5  INDEPENDENT AUDITOR'S REPORT Primary Government Basic Financial Statements Statement of Net Position Cash Basis December 31,2021 Statement of Activities- Cash Basis For the Year Ended December 31,2021  Statements of Assets, Liabilities and Fund Balances- Cash Basis  Governmental Funds December31,2021  6  Statements of Revenues Collected, Expenditures Paid, and Changes in Fund Balance Cash Basis Governmental Funds For the Year Ended December 31,2021 Statements ofNet Position - Cash Basis Proprietary Funds December 31,2 2021 Proprietary Funds Statement ofl Net Position Pension Trust Funds December. 31, 2021 Statement of Changes inl Net Position Pension Trust Funds For the Year Ended December 31,2021 Notes to Primary Government Financial Statements December31,2021 REQUIRED SUPPLEMENTARY INFORMATION Schedules of Changes in Plan's Net Pension Liability and Related Ratios Non-Uniform Pension Plan and Police Pension Plan Non-Uniform Pension Plan and Police Pension Plan  7 8  Statements of Revenues, Expenses and Changes in Net Position - Cash Basis  For the Year Ended December: 31, 2019  9  10 11 12-28  Last 101 Fiscal Years Schedule of Employer Contributions Last 101 Fiscal Years  29-30 31    BOROUGH OF CORNWALL,PENNSYLVANIA  FINANCIALSTATEMENTS DECEMBER31,2021 TABLE OF CONTENTS  PAGE: NO.  REQUIRED SUPPLEMENTARY INFORMATION (continued) Statement of Revenues Collected and Expenditures Paid Budget and Actual  Cash Basis General Fund For the Year Ended December 31, 2021 SUPPLEMENTARY INFORMATION Special Revenue Funds December 31,2021  32  Combining Statement of Assets and Liabilities Arising from Cash Transactions  33  Combining Statement of Revenues Collected and Expenditures Paid  and Changes inl Fund Balance- Cash Basis Special Revenue Funds For the Year Ended December: 31,2021  34  Combining Statement of Assets and Liabilities Arising From Cash Transactions  Capital Projects Funds December: 31,2021  35  Combining Statement of Revenues Collected and Expenditures Paid  and Changes in Fund Balances Cash Basis Capital Projects Funds For the Year Ended December 31,2021  36    STANILLA, SIEGEL and - AASER LLC  Thomas I.: Siegel, CPA Maxine R. Maser, CPA David H. Siegel, CPA Daniel S. Siegel, CPA Rachel L. Siegel, ,CPA Samuel R. Siegel, CPA  Certified Public. Accountants  INDEPENDENT AUDITOR'S REPORT  To the Members of] Borough Council BOROUGH OF CORNWALL, PENNSYLANIA Cornwall, Pennsylvania  We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the BOROUGH OF CORNWALL, PENNSYLVANIA, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the Borough's primary government finançial statements as listed in the Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting as described in Note 1; this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit ina accordance with auditing standards generally accepted ini the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment ofi the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall We believe that the audit evidençe we have obtained is sufficient and appropriate to provide a basis for our audit  table of contents.  Management's. Responsibility, for the Financial Statements  to fraud or error. Auditor's Responsibility  ofmaterial misstatement.  presentation of the financial statements.  opinions.  1  825 Norman Drive*Lebanon, PA 17042 . Telephone 717-273-1683- . Fax" 717-273-3576    Opinions  In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position - cash basis of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Borough of Cornwall, Pennsylvania, as of December 31, 2021, and the respective changes in financial position - cash basis for the year then ended in accordance with the cash  basis ofaccounting described in Note 1. Basis ofAccounting  We draw attention to Note 1 oft the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that  matter. Other Matters  Required Supplementary. Information  Accounting principles generally accepted in the United States of America require that the pension and budgetary comparison information on pages 24 through 29 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not Management has omitted the management discussion and analysis that accounting principles generally accepted int the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Borough of Cornwall, Pennsylvania's financial statements. The supplementary combining statements of special revenue and capital project funds are presented for purposes of additional analysis and are not a The supplementary combining statements of special revenue and capital project funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial  provide us with sufficient evidence to express an opinion or provide any assurance.  financial statements is not affected by this missing information.  Other Supplementary. Information  required part of the basic financial statements.  2    statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements of special revenue and capital project funds are fairly stated, in all material respects, in relation to the basic  financial statements as a whole. Stanilla, SiegelandMaser. LLC  Lebanon, Pennsylvania February 15, 2022  3    BOROUGH OF CORNWALL, PENNSYLVANIA STATEMENT OF NETI POSITION- CASH BASIS  December31,2021 Governmental Activities $ : 2,126,469 49,103 $ 2,175,572  Business-Type Activities $3,867,618  Total $5,994,087 49,103  ASSETS  Cash and Cash Equivalents Cash, Restricted for) Escrow Total Assets  $3 3,867,618 $6,043,190  LIABLILITIES  Payroll Liabilities Developer Escrow Total Liabilities  $  5,669 49,103 $ 54,772  $ $  -0- -0-  $ 5,669 49,103 $ 54,772  NET POSITION  Restricted - Public Safety Restricted - Liquid Fuels Restricted- - Community Programs Unrestricted Total Net Position  $ 48,255 31,438 276 2,040,831 2,120,800  48,255 31,438 276 5,908,449  3,867,618  $3,867,618 $5,988,418  See. Accompanying Notes to Primary Government Financial Statements  4    0  $A    BOROUGH OF CORNWALL, PENNSYLVANIA  STATEMENTS OF ASSETS, LIABILITIES AND FUND BALANCES-CASH BASIS  GOVERNMENTAL FUNDS December31,2020  Capital Reserve Fund  Total Funds 49,103 2,175,572  Non-Major Governmental  General $1,354,681 49,103 $1,403,784  Funds  ASSETS  Cash and Cash Equivalents Cash, Restricted for Escrow Total Assets  459,335 $ 312,453 $ 2,126,469  459,335 $ 312,453  LIABILITIES  Payroll Liabilities Developer Escrow Total Liabilities  $ 5,669 $ 49,103 $ 54,772 $  -0- $ -0- $  -0- $  5,669 49,103  -0- $ 54,772  FUND. BALANCES  Restricted Committed Assigned Unassigned Total Fund Balance  $  -0- $ 1,349,012  -0- $ 79,969 $ 79,969  118,653 113,831  118,653 573,166 1,349,012  459,335  $1,349,012 $459,335 $ 312,453 $ 2,120,800  Total Liabilities andl Fund Balance $1,403,784  459,335 $ 312,453 $ 2,175,572  See. Accompanying Notes To Primary Government Financial Statements  6    BOROUGH OF CORNWALL, PENNSYLVANIA STATEMENTS OF REVENUES COLLECTED, EXPENDITURESPAD AND CHANGES INI FUND BALANCE- CASH BASIS GOVERNMENTAL FUNDS For the Yearl Ended December: 31,2021  Capital Reserve Fund -0-$  Total Governmental Funds $ 2,025,311 108,511 9,490 532,602 320,922 739 19,347 3,016,922 $ 349,550 827,229 657,118 16,075 248,605 503,572 11,406 2,613,555 $ 403,367 $ 410,000 9,000 (200,000) 5,953 (410,000) (185,047)  Non-Major Funds -0- 174,104 26,250 138 7,904 -0- 9,558 237,542 6,312 54,143  General $2,025,311 $ 108,511 9,490 358,498 294,672 489 11,443 $2,808,414 $ 349,550 $ 817,671 419,576 9,763 194,462 503,572 11,406 $2,306,000 $ $ : 502,414 $ $ -0- 5,953 (440,000) $ (434,047) $ 150,000 $  REVENUES COLLECTED Taxes Licenses and Permits Fines and] Forfeits Intergovernmental Charges for Services Investment Earnings Miscellaneous Total Revenues Collected EXPENDITURESPAID General Government Public Safety Public Works-I Highways Culture- Recreation Debt Service Employer Paid] Benefits and" Taxes Miscellaneous Total Expenditures Paid Excess (Defiency) of Revenues Collected Over Expenditures Paid OTHER FINANCING SOURCES (USES) Operating" Transfers In Sale of Assets Loan tol Fire Company Refund ofPrior Year Expense Operating Transfers Out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues Collected and Other Financing Sources Over Expenditures Paid and Other Financing Uses Fund Balance- January 1,2021 Fund Balance - December. 31,2021  112  112 $ 208,396 -0-$ $  -0- $ 307,555 112 $ (99,159) 350,000 $ (200,000)  60,000 9,000 30,000 99,000  68,367  150,112  (159)  218,320 $ 1,902,480 2,120,800  $1,280,645 $ 309,223 $ 312,612 $ 1,349,012 $ 459,335 $ 312,453  See Accompanying Notes To Primary Government Financial Statements  7    BOROUGH OF CORNWALL, PENNSYLVANIA STATEMENTS OF NETI POSITION- CASH BASIS  PROPRIETARY: FUNDS December31,2021 Sewer Fund $ - 1,961,297 1,197 $ 1,962,494 $  Water Fund - 1,906,321 3,178 1 1,909,499  Total $ 3 3,867,618 4,375 $3,871,993 $ 4,375 $3,867,618 $3,871,993  ASSETS  Cash and Cash Equivalents Due from Other Fund Total Assets  LIABILITIES NETPOSITION  Due to Other Fund Unrestricted  3,178  $  1,197  $ 1,959,316 $ 1,962,494  $ 1,908,302 1,909,499  Total Liabilities and Net Position  See Accompanying Notes to Primary Government Financial Statements  8    BOROUGH OF CORNWALL, PENNSYLVANIA PROPRIETARY FUNDS For the Year Ended December 31, 2021  STATEMENTS OF REVENUES, EXPENSES. AND CHANGES INI NETI POSITION- CASH BASIS  Sewer Fund $ 829,283 4,900 5,570 $ 839,753 $ 101,822 48,560 121,678 6,877 17,719 6,099 451,721  Water Fund $ 770,780 102,225 11,732 -0- $ 884,737 $ 101,121 48,596 158,289 10,127 98,071 3,737 389,049  Total $ 1,600,063 107,125 11,732 5,570  OPERATING REVENUES User Charges Tapping Fees Reimbursements Miscellaneous Income Total Operating Revenue OPERATING EXPENSES Salaries and Wages Employer Paid Benefits and' Taxes General Operating Expenses General Administrative Expenses Maintenance and Repairs Professional Fees Water Purchase Sewer Usage Charge  $ 1,724,490 $  202,943 97,156 279,967 17,004 115,790 9,836 389,049 451,721  Total Operating Expenses Operating Income NON-OPERATING REVENUES (EXPENSES) Investment Income Operating Transfers In/(Out)  $ 754,476 $ 808,990  $ 1,563,466 $ 887 $ -0- 887 $ $ 76,634 $ 1,831,668 ) 1,908,302  $ 85,277 $ $ $ 86,177 1,873,139 1,959,316  $ 75,747 900 $ -0- 900 $  161,024 1,787 -0- 1,787 162,811 3,704,807 $ 3,867,618  Total Non-Operating Revenues (Expenses)  CHANGE. INI NET POSITION NET) POSITION- - BEGINNING OF YEAR NETI POSITION-I END OF YEAR  See Accompanying Notes tol Primary Government Financial Statements  9    BOROUGH OF CORNWALL, PENNSYLVANIA STATEMENT OF NET POSITION PENSION TRUST FUNDS December 31,2020  Police Pension Fund $ 82,899 2,860,939 3,830 2,947,668  Non-Uniform Pension Fund $  ASSETS  Cash and Cash Equivalents Investments Contributions Receivable Prepaid Pension Payments Total Assets LIABILITIES Due to Others Total Liabilities  50,238 2,000,008 10,386 2,060,632  $ $  -0- -0-  $ $  -0- -0-  NETPOSITION Restricted for pension benefits  2,947,668  2,060,632  See Accompanying Notes To Primary Government Financial Statements  10    BOROUGH OF CORNWALL, PENNSYLVANIA STATEMENT OF CHANGES INI NET: POSITION PENSION TRUST FUNDS For the Year Ended December31,2021  Police Pension Fund $  Non-Uniform Pension Fund $ 59,115 -0- 47,973 $ 107,088 $ 235,349 (13,287) $ 222,062 $ 329,150 $ 124,630  Additions Contributions: Cornwall Borough Contributions Employee Commonwealth ofPA  10,241 3,284 38,378 $ 51,903 $ 356,040 (19,999) $ 336,041 $ 387,944 $ 26,812 253,018 8,700 $ 288,530 99,414  Investment Income: Investment Expense Net Investment Income Total Net Additions  Net Apreciation in Fair Value of Investments  Deductions Benefits Paid DROP Distribution Administrative Expense Total Deductions Change inl Net Position Net Position - Restricted for Pension Benefits Beginning of Year End of Year  8,900 $ 133,530 $ 195,620  2 2,848,254 2 2,947,668  1,865,012 5 2 2,060,632  See Accompanying Notes Tol Primary Government Financial Statements  11    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTOF PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December 31,2021  NOTEI-SUMMARY OF SIGNIFIGANT ACCOUNTING POLICIES  Organization and Reporting Entity  The Borough of Cornwall is located in Lebanon County, Pennsylvania. The Borough is a municipal corporation and is governed by an elected Borough council and a mayor. The daily operations and management of the Borough are performed by the administrative staff of the Borough, headed by the Borough Manager, who is appointed by the Borough Council. Services provided by the Borough include public safety, public works, public health and welfare, Ar reporting entity is comprised ofthe primary government, component units, and other organizations that are included to ensure that the financial statements of the Borough are not misleading. The primary government consists of all As required by generally accepted accounting principles, these financial statements are to present the Borough of Cornwall (the primary government) and organizations for which the primary government is financially accountable. The Borough is financially accountable for an organization if the Borough appoints a voting majority of the organization's governing board and (1) the Borough is able to significantly influence the programs or services performed or provided by the organization; or (2) the Borough is legally entitled to or can otherwise access the organization's resources; the Borough is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the Borough is obligated for the debt of the organization. Component units may also include organizations that are financially dependent on the Borough in that  community planning, and culture and recreation.  funds, departments, boards, and agencies that are not legally separate from thel Borough.  the Borough approved the budget, the issuance of debt, or the levying ofta taxes.  Basis of Accounting  The Borough of Cornwall prepares its financial statements on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles, generally accepted in the United States of America. Under the cash basis of accounting, revenues are recognized when received rather than when earned, and expenses are recognized when paid rather than when incurred. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conformity with accounting principles generally The Pension Plan's financial statements in the Fiduciary Funds are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due, in accordance with Act 205, as amended by Act 189. Benefits and: refunds are: recognized when due and payable in accordance with the terms  accepted in the United States of America.  oft the Plan. Basis of Presentation  Government-wide Financial Statements:  The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in  part by fees charged to external parties for goods or services.  12    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTOPRIMARYCOVERMMENTI FINANCIALSTATEMENTS  December: 31,2021  NOTEI-SUMMARY OF SIGNIFIGANT ACCOUNTING POLICIES/continued)  The government-wide Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, serviçes, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements ofa particular function. Taxes and other items not  properly included among program revenues arei reported instead as general revenues.  Fund Financial Statements:  Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, cash receipts/revenues, and cash sluremettvependnures. The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories. Nonmajor funds by category are summarized into a single column. GASBS No. 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or expendituresexpenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The nonmajor  Funds are organized into three major categories: governmental, proprietary, and fiduciary.  funds are combined in a column in the fund financial statements.  Governmental Funds net income.  The focus of the govemmental funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon The General Fund is the primary operating fund of the Borough and is always classified as a major fund. Iti is used to account for all activities except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds ofs specific revenue sources that are: restricted or committed to disbursements for specified purposes other than debt service or capital projects. None of the special revenue funds are reported as major funds. Non-major special revenue funds are the Police Equipment Fund, Police Treasury Fund, Motor License Fund, DARE Fund, DTF Fund, and Recreation Capital Project Funds are used to account for financial resources to be used for capital outlays. None of the capital project funds are reported as major funds. Non-major capital project funds are the Capital  Fund.  Projects Fund, Capital Reserve Fund, and Highway Equipment Fund.  Enterprise Funds  Enterprise funds are: required to be used to account for operations for which a fee is charged to external users for goods or services and the activity (a)i is financed with debt that is solely secured by aj pledge oft the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The Township reports the Water Fund and the Sewer Fund as major proprietary funds. These funds account for the  water and sewer service operations oft the Township.  13    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES TOPRIMARYGOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTEI-SUMMARY OF SIGNIFIGANT ACCOUNTING POLICIES (continued):  Fiduciary Fund Trust and Agency Funds  Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support. Borough programs. The reporting focusi is on: net assets and changes in net assets. The Borough's fiduciary funds are presented in the fiduciary fund financial statements by type. Since by definition these assets are being held for the benefit of a third party and cannot be used to address activities or obligations oft the government, these funds are not incorporated into the government-wide statements.  Fund Equity  In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not  available for appropriation or are legally segregated for the specific purpose.  Net Position  Net position of the government-wide funds are categorized as restricted or unrestricted. The restricted category represents the balance of assets restricted by requirements externally imposed constraints or by legislation.  Cash and Cash Equivalents  Cash and cash equivalents consist of cash and short-term governmental securities.  Investments exchange rates. Capital Assets  Investments are stated at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current  Capital assets purchased are recorded as expenditures in the respective fund at the time of purchase. The  Borough has not maintained a record ofi its capital assets.  Operating Revenuesand Expenses  Operating revenues and expenses in the Proprietary Funds are those that result from providing services and  producing and delivering goods and/or services.  Pension Expenses  Investment expenses consist of investment management, custodial fees, and other significant investment related costs. Administrative expenses consist of consulting, actuarial, legal, and accounting services, along with any other significant Plan related costs. The above expenses are allowable pension Plan expenditures in accordance  with Act 205 and may be funded with Plan assets.  14    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES TO PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTEI-SUMMARY OF SIGNIFIGANT ACCOUNTING ouCES/continue!:  Government-wide Net Position  Government wide net position are divided into three components:  Net investment in capital assets consist of the historical cost of capital assets less accumulated depreciation and less any debt that remains outstanding that was used to finance those assets. The Restricted - consist of net position that is restricted by the state enabling legislation (through restrictions on shared revenues), by grantors (both federal and state), and by other contributors.  Borough does not maintain ai record ofits capital assets  Unrestricted all other net position is reported int this category.  Governmental Fund] Balances  Int the governmental fund financial statements, fund balances are classified as follows:  Nonspendable - Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. The Borough has no Restricted - Amounts that can be spent only for specific purposes because of enabling legislation, the Borough code, state or federal laws, or externally imposed conditions by grantors or creditors. Committed - Amounts that can be used only for specific purposes determined by a formal action Assigned- - Amounts that are designated by the Borough Council for a particular purpose. Unassigned - All amounts not included in other spendable classifications.  nonspendable amounts at December 31,2019.  by Borough Council ordinance or resolution.  Use of Restricted Resources  When an expense is incurred that can be paid using either restricted or unrestricted resources (net assets), the Borough's policy is to first apply the expense toward restricted resources and then toward unrestricted resources. In governmental funds, the Borough's policy is to first apply the expenditure toward restricted fund balance and then to other, less restrictive classifications committed and then assigned fund balances before using unassigned  fund balances. Risk Management  Thel Borough is exposed to various risks ofl loss related to torts; theft of, damage to, and destruction of assets, and  errors and omissions for which it carries commercial insurance.  Interfund Activity  Interfund activity is reported as reimbursements or transfers. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental funds are netted as part of the reconciliation tot the government-wide financial statements. Intercompany balances are present when there is ai time lag in the  reimbursement and/or transfer.  15    BOROUGH OF CORNWALL,PENNSYLVANIA  NOTES' TOI PRIMARY GOVERNMENTI FINANCIALSTATEMENTS  December 31,2021  NOTEL-SUMMARYOF SIGNIFIGANT ACCOUNTING POLICTESIcntinued):  Budgetary Data  The Borough follows these procedures in establishing the budgetary data reflected in the financial statements.  Int the fall of each year, the Borough Manager submits to the Borough Council a proposed operating Budget for the subsequent year. The operating budget includes proposed expenditures, Public Hearings are conducted to obtain citizen comments on the proposed budget. Prior to December 31 the budget is legally adopted by the passage ofa an ordinance by Borough Council  and the means of financing them.  The Borough prepares it's Budget on the cash basis ofaccounting.  The legal level of budgetary control is at the fund level. The Borough does not make budget transfers between expenditure accounts. The carryover fund balance from the prior year and the current year excess of revenues collected over expenditures paid are available for appropriation without formal budget revision.  Real Estate Taxes  The total taxable assessed real estate valuation for the year ended December 31, 2021, is $476,244,301. The The Borough is permitted by the Borough Code of the Commonwealth of Pennsylvania to levy taxes up to 30 mills of assessed valuation for general governmental services other than payment of principle and interest on debt and other special purposes. For 2021, Borough real estate taxes werel levied at the rate of2.25 mills ($2.25 oft tax A 2% discount is allowed on taxes paid by April 30. Taxes are payable at a face value during May and June, and  Borough's property tax is levied March 1.  on each $1,000 ofa assessed value).  a 10% penalty is added to taxes paid after June 30.  Use of] Estimates  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Since these financial statements  are prepared on the cash basis, no significant estimates have been used.  Subsequent Event Review available to be issued.  The Borough has evaluated subsequent events through February 15, 2022 the date the finançial statements were  16    BOROUGH IOF CORNWALL, PENNSYLVANIA  NOTESTO! PRIMARY GOVERNMENT FINANCIAL STATEMENTS  December. 31, 2021  NOTEI-STFWARDSHT, COMPLIANCE AND ACCOUNTABILITY Compliance with Finance Related Legal and Contractual Provisions Deficit Fund Balance or Retained Earnings of Individual Funds There are no deficits in fund balances or net assets. Excess ofE Expenditures Over Appropriations in] Individual Funds  Thel Borough! has no material violations of finance related legal and contractual provisions.  There were: no funds with legally adopted budgets that had an excess of expenditures over appropriations for the  year ended December 31,2021.  NOTE3- CASH AND CASH EQUIVALENTS  Custodial Credit Risk  The Borough is authorized by statute toi invest in government: securities and insured accounts or their equivalents. The Borough has no formal policy that addresses custodial risk. There were no deposit or investment transactions during the year that were in violation of either state statutes or Borough policy. The Borough deposits cash in local financial institutions. At the year-end, the Borough's carrying amount of deposits was $1,833,945, excluding $450 petty cash, and the bank balance was $1,871,859. Bank balances up to $250,000 are covered by federal depository insurance. The Borough had $1,562,764 in excess of FDIC coverage at December 31, 2021. Depositories pledge assets to secure deposits in excess ofFDIC coverage in accordance with Act 72. Cash equivalents of the Borough consist of funds deposited in the Pennsylvania Local Government Investment Trust (PLGIT). These funds are invested in federal securities. Book and bank balances at December 31, 2021, were $3,791,899. The cash equivalents are: not categorized by level of credit risk as they are pooled funds and securities are not used as evidence ofinvestment. Market values of the above instruments are at cost.  Thel Borough places no limit on1 the amounts invested in any one depository.  NOTE4-I INVESTMENTS  The Borough code provides for the deposit of governmental funds into certain authorized investment types including U.S. Treasury bills, U.S. Treasury notes, other short term U.S. and Pennsylvania government obligations or their agencies or instrumentalities and insured or collateralized time deposits and certificates of The Government Accounting Standards Board in Statement No. 3 (GASB 3), as amended by GASB No. 40, requires state and local governments to disclose certain risks associated with thej plan's deposits and investments. GASB 53 requires investment derivative instruments be reported at fair value and disclosed according to GASB  deposits. The Borough has no investments other than those held by its Pension Plans.  40r requirements.  17    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTO1 PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December3 31,2021  NOTE-INVESIMENTS: (continued) Method Used to Value Pension Investments last reported sales price at current exchange rates.  Investments are reported at fair value. Securities traded on a national or international exchange are valued at the  Investment Policy Summary  The Pension Plan's investment policy in regard to the allocation of invested assets is established and may be amended by Borough Council. The objective of the investment strategy is to reduce risk while maximizing returns through the prudent diversification of the portfolio in order to maintain a fully funded status and meet the benefit and expense obligations when due. The Plan's formal Investment Policy Statement which is revised periodically provides more comprehensive details on investment strategy and authorized investments. The Plan'si investment policy for both Plans establishes the following target allocation across asset classes:  Asset Class Domestic Equity International Equity Fixed Income Real Estate  Target 47.0% 8.0% 37.0% 5.0% 3.0% 4.21% 6.71%  Cash and Cash Equivalents  Total Net Blended Return Excluding 2.5%1 forl Inflation Long Term Expected Rate ofReturn Including Inflation  The long-term expected rate of return on the Plan's 's investments was determined using an asset allocation study conducted by the Plan's investment management consultant in December 2020 in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates ofreturn by the target asset allocation percentage and by adding expected inflation. Best-estimates or arithmetic real rates of return for each major asset class included in the Plan's target Concentration of credit risk is the risk of loss attributable to the magnitude of a Plan's investment in a single issuer. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this requirement. The Plan does have at formal investment policy that addresses concentration of credit risk. As of December 31, 2020, no investment in any one organization: represented five percent (5%) or more of the Plan's fiduciary net position.  asset allocation as of] December 31, 2020 are listed in the table above.  Concentration of Credit Risk  18    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES' TO PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTE4-I INVESTMENTS (continued)  Rate of] Return  For the year ended December 31, 2021, the annual money-weighted rate of return on pension plan investments, net of! pension plan investment expense, was 11.80 percent for the Police Pension Plan and 11.91 percent for the Non-Uniformed Pension Plan. The money-weighted rate of return expresses investment performance, net of The Plan' 's deposits andi investments are governed by Title 20 oft the Pennsylvania Consolidated Statutes, Chapter The Plan does not have a formal deposit policy that addresses custodial credit risk or foreign currency risk, however, the Plan held no deposits that were exposed to custodial credit risk or foreign currency risk as of Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Plan's investment policy that addresses credit risk states that in cases where the yield spread adequately compensates for additional risk, fixed income investments with B ratings can be purchased to achieve the high yield performance. The credit risk of a debt instrument as measured by a Nationally Recognized Statistical Rating Organization (NRSRO). (Morningstar for bond mutual funds or Moody's for bonds and mortgages) is as  investment expense, adjusted for the changing amounts actually yinvested.  Deposits and Investments  731 Municipalities Investments, Section 7302.  Deposits  December: 31,2021. Credit Risk  follows:  Police Plan Fair Value 172,903 375,228 259,894 259,207 $1,150,129  Non-Uniformed Plan Fair Value $120,873 $262,313 $181,671 $181,206 $5 50,238 $796,301  Investment Type Bond Mutual Funds Bond Mutual Funds Bond Mutual Funds Bond Mutual Funds Money Market Fund Total  Quality BBB BB B Not Rated Not Rated $ 82,899  Custodial Credit Risk  Custodial credit risk fori investments is the risk that in the event oft the failure oft the counterparty to a transaction, thel Plan will not be able to recover the value ofi investment or collateral securities that are in the possession ofan outside party. The Plan does not have a formal investment policy that addresses custodial credit risk, however, the Plan held no investments that were exposed to custodial credit risk at December 31,2021. Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The Plan does not have a formal investment policy that addresses foreign currency risk; however, the Plan held no investments that were exposed to foreign currency risk as ofDecember: 31, 2021.  Foreign Currency Risk  19    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES TO PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  Interest Rate Risk  Interest rate risk is the risk that changes in interest rates that will adversely affect the fair value of an investment or a deposit Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment or a deposit. The Plan does not have ai formal investment policy that limits investment maturities asa means of managing its exposure to fair value losses arising from increasing interest rates. As of December 31,  2021, thel Plan'si investment balance exposed to interest rate risk was as follows:  Investment Maturities (in Years) Less Than1 1-5  Investment Type Non-Uniform Plan: Police. Plan: Total  Fair Value  More Than 10  6-10  Bond Mutual Funds $ 746,063 $ -0- $ 181,671 $ 383,186 $ 181,206  Bond Mutual Funds 1.067.232  -0-  259.894  548.131 $ 259.207  $1,813,295 $-0- $441.565 $ 931,317 $440.413  NOTES-PENSIONPLANS  The Borough maintains two single-employer defined benefit pension plans covering substantially all employees. The Borough Council is responsible for management of plan assets for both the Non-Uniform and] Police Pension Plans. The Borough has delegated the authority to manage certain plan assets to Univest Municipal Pension Services who prepares a year-end financial statement of the pension plans, a copy of which is kept on file in the  Borough office. Refer to the plan document for a detailed description ofp plan benefits.  Non-Uniform Pension Plan  The Non-Uniform Pension Plan is a single-employer defined benefit pension plan, governed in accordance with Act 69 ofthe General Assembly oft the Commonwealth of Pennsylvania. The plan is controlled by the provisions of Ordinance 1996-4, as amended. The Plan covers full-time non-uniformed employees oft the Borough. The Plan provides retirement, survivor, and disability benefits to plan members and their beneficiaries. Refer to the Plan  document for a detailed description of plan benefits.  Police Pension Plan  The Police Pension Plan is a single-employer defined benefit retirement plan, governed in accordance with provisions pursuant to Act 12 of the General Assembly of the Commonwealth of Pennsylvania. The Plan covers full-time police officers and is controlled by the provisions ofaj joinder agreement. The Planj provides retirement, survivor, and disability benefits to plan members and their beneficiaries. Refer to the Plan document for a  detailed description of plan benefits.  20    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTO: PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTES-PENSIONPLANSIcontinue.)  AsofDecember 31, 2021, the most recent information. available as ofr report date, membership consisted of:  NON-UNIFORM PENSIONPLAN 9 4 9 22  POLICE PENSIONI PLAN 2 1   Inactive Plan! Members Currently Receiving Benefits Inactive Plan Members Entitled to but not yet Receiving  Benefits Active Plan Members Total Contributions and Funding Policy  Act 205 of 1984, the Municipal Pension Plan Funding Standard and Recovery Act, initiated actuarial funding requirements for Pennsylvania municipal pension plans. Under Act 205 provisions, a municipal budget must provide for the full payment of the minimum municipal obligation (MMO) to each employee pension fund oft the municipality. Act 189 of 1990 amended Act 205 and redefined the calculation used to determining the MMO to employee pension funds. The MMO is now defined as the total financial requirements to the pension fund, less funding adjustments and As a condition of participation in the non-uniform pension plan, non-uniform employees are not required to contribute to the plan. This contribution is governed by the Plan's ordinançes. In accordance with Act 205, as amended, the As a condition of participation in the Police Pension Plan, full-time officers are required to contribute 1% of their compensation into the plan. This contribution is governed by the Plan's ordinances and collective bargaining agreement. In: accordance with Act 205, as amended, the Borough was required to contribute $10,241 to the Plan for  estimated member contributions.  Borough was required to contribute $59,115t to the Plan fort the year 2021  the year 2021. Net Pension Liability  The components oft the net pension liability of the Plan as ofDecember. 31, 2021 were as follows:  NON-UNIFORM PENSIONPLAN $ - 2,314,105 2,060,632 253,473 89.0%  POLICE PENSIONPLAN $2 2,649,255 $ 2,947,668 $ (298,413) 111.3%  Total Pension Liability Plan Fiduciary Net Position Net Pension Liability Plan Fiduciary Net Position asal Percentage oft the total Pension Liability  Update procedures were used to roll forward to the plan's fiscal year ending Deçember 31, 2021. The total pension liability was determined as part of an actuarial valuation at January 1, 2021 and rolled forward to  December: 31,2021.  21    BOROUGH OF CORNWALL,PENNSYLVANIA  NOTEST TOPRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTE5-] PENSION PLANS (continued)  Actuarial Assumptions  An actuarial valuation of the total pension liability is performed biennially. This report was based upon the Plan's  actuarial assumptions, asset valuation method, and cost method as described' below:  Non-Uniformed Pension Plan Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of] Return Retirement Age Police Pension Plan Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age  January 1,2 2021 Entry Age Level Dollar 16 years Market Valuation 2.25% 5.00% 62  7.00% (Net of pension plan investment expense including inflation)  January 1, 2021 Entry Age Level Dollar N/A Market Value 2.25% 5.50% 55  7.00% (Net of pension plani investment expense including inflation)  Mortality rates were based on the PUBS-2010 Mortality Table projected 5 years past the valuation date using  scale MP-2020.  22    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES TO PRIMARY GOVERNMENT FINANCIAL: STATEMENTS  December 31,2021  NOTE 5-1 PENSIONPLANS (continued)  Discount Rate  The discount rate to measure the total pension liability was 7.00% for both Plans. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that municipal contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based upon the Plan's S current target investment allocation and the associated long-term expected investment return for its asset classes, the Plans' long-term returns may be less than its actuarial discount rate assumption use to determine its pension liability. This may result in future increased total and net pension liability. The actuary recommends that the governing body explore the costs of lowering the actuarial assumed investment rate of return going forward to be more consistent with  the plans' anticipated investment returns. Net Pension Liability Sensitivity  The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The tables below present the net pension liabilities calculated using the discount rates of 7.00% for both Plans as well as what the net pension liabilities would be if they were calculated using a discount rate that is 1 percentage point  lower or 1 percentage point higher than the current rates.  NON-UNIFORM PENSION PLAN  1% Decrease 6.00% $457,576  Current Discount Rate 7.00% $253,473  1% Increase 8.00% $77,680  Net Pension Liability  POLICE PENSION PLAN Current Discount Rate 7.00% ($298,413)  1%1 Decrease 6.00% $554  1% Increase 8.00% ($549,500)  Net Pension Liability  Act 44 Deferred Option Retirement Program (DROP)  An active member who has met the eligibility requirements for normal retirement may elect to participate in the DROP for aj period of up to 60 months. The monthly pension shall be calculated as of the date of participation in the DROP. The DROP plan account balance is distributed to the member in a lump sum at the termination of As of December 31, 2021, there was one DROP participant in the Police Pension Plan. The balance of the  DROP.  amount held by the Plan pursuant to the DROP was $262,128.  23    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES TOPRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTE 5-] PENSIONPLANS (continued) Changes in) Borough's Net Pension Liability information available as ofreport date, were as follows:  Changes in the Borough's net pension liability for the year ended December 31, 2021, the most recent  Increase/Decrease) Plan Fiduciary Net Position (b) $1,865,012 -0- -0- -0- -0- -0- 59,115 47,973 -0- 222,062 (124,630) (8,900) 195,620 $2,060,632 Increase/(Decrease) Plan Fiduciary Net Position (b) $2,848,254 -0- -0- -0- -0- -0- 10,241 38,378 3,284 336,041 (279,830) (8,700) -0- 99,414 $2,947,668  Total Pension Liability (a) $2,085,700 40,415 155,467 -0- (30,424) 187,577 -0- -0- -0- -0- (124,630) -0- 228,405 $2,314,105 Total Pension Liability (a) $2,530,336 48,949 182,469 -0- (76,657) 243,988 -0- -0- -0- -0- (279,830) -0- -0- 118,919 $2,649,255  Net Pension Liability (a)-(b) $220,688 40,415 155,467 -0- (30,424) 187,577 (59,115) (47,973) -0- (222,062) -0- 8,900 32,785 $253,473 Net Pension Liability (a)-(b) $(317,918) 48,949 182,469 -0- (76,657) 243,988 (10,241) (38,378) (3,284) (336,041) -0- 8,700 -0- 19,505 $(298,413)  NON-UNIFORM PENSION PLAN Balances at 12/31/2020 Changes for the year: Service Cost Interest Changes in BenefitTerms Experience Changes of Assumptions Contributions Employer Contributions- - State Aid Contributions - Member Net Investment Income Benefit Payments Administrative Expense Net Changes Balances a 12/31/2021  Differences Between Expected and Actual  POLICE PENSION. PLAN Balances at 12/31/2020 Changes for the year: Service Cost Interest Changes in Benefit Terms Changes ofA Assumptions Contributions - Employer Contributions - State. Aid Contributions - Member Net Investment Income Benefit Payments Administrative Expense Other Changes Net Changes Balances at 12/31/2021  Differences Between Expected. and Actual Experience  24    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTOPRIMARY GOVERNMENT FINANCIALSTATEMENTS  December31,2021  NOTE! 5- PENSION PLANS (continued) Plan Fiduciary Net Position  Detailed information about the Plan's fiduciary net position is available in the separately issued Cornwall Borough  Non-Uniform Pension Plan and Cornwall Borough Police Pension Plan financial reports. Pension Expense, Deferred Outflows of] Resources. and Deferred Inflows of] Resources  The Borough of Cornwall prepares its financial statements on the cash basis of accounting, which is a comprehensive basis ofaccounting other than accounting principles, generally accepted in the United States of America. Asar result, the Borough did not include entries for pension expense, deferred outflows of resources, or deferred inflows of resources in its financial statements for the year ended December 31, 2021. On the accrual basis of accounting, it would have recognized pension expense of $55,511 for the Non-uniformed Plan and ($29,137) for the Police Pension Plan, and at December 31, 2021, the most recent information available as of report date, the Borough would have reported deferred outflows or resources and deferred inflows of resources related to pensions from the following  sources:  Deferred Outflows of Resources $ -0- 157,027 -0- $ 157,027 $ -0- 208,512 -0- $ 208,512  Deferred Inflows of Resources $ (14,738) -0- (149,818) $ (164,556) (200,085) -0- (227,906) $ (427,991)  NON-UNTFORM PENSIONI PLAN Differences between Expected and Actual Experience Changes in Assumptions Net Difference between Projected and Actual Earnings on Pension Plan Investments Total POLICEI PENSIONI PLAN Changes in Assumptions Pension Plan Investments Total  Differences between Expected and Actual Experience Net Difference between Projected and Actual Earnings on  Amounts reported as deferred outflows of resources and deferred inflows of resources would have been recognized in  pension expense as follows:  NON-UNIFORM PENSION. PLAN $ 3,404 (39,318) (7,525) 6,732 25,595 3,583  POLICE PENSIONPLAN $ (55,041) (118,218) (59,130) (4,211) 17,121 -0-  Year Ended December: 31:  2022 2023 2024 2025 2026 Thereafter  25    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTESTO PRIMARY GOVERNMENT FINANCIALSTATEMENTS  December. 31,2021  NOTE6-DEBT  To pay settlement amounts as a result of an EIT. judgement that was finalized in 2016 the Borough entered into an agreement with Jonestown Bank & Trust for the issuance ofa General Obligation Note Series 2017. The Borough borrowed $1,740,000 at an interest rate of1 1.90% through May 2022, at which time the rate will be variable equal to 60% of the Prime Rate, but not more than 3.75% per annum. Principal and interest payments are due semi-annually on June 1 and December 1 beginning. June 1,2017, through December 1, 2026. The outstanding balance at December 31,2021, was $893,000. The full faith, credit, and taxing power oft the Borough are pledged as security for the note. In April 2017 the Borough signed a capital lease agreement with Municipal Capital Finance for a new dump truck. The dump truck was delivered in January 2018 and the down payment of $28,673 was made at that time. The total lease is $127,656, and payments of$34,713 were due annually through. April 2021. The lease has been fully paid. In August 2019 the Borough signed a capital lease agreement with F.N.B. Equipment Finance for a new tractor, at which time a down payment of $28,103 was made. The total lease is $147,348, and payments of $27,519 are due Inl February 2020, thel Borough signed a capital lease agreement for $102,387 with Santander Bank, N.A. for a dump truck with an initial payment of$19,430. Payments of$19,430 plus implied interest are due annually through 2024.  annually through 2024.  Debt service requirements for the next five years and thereafter are as follows:  Year Ended 2022 2023 2024 2025 2026 Thereafter  Principal $ 219,356 226,192 234,059 194,000 155,000 -0- $1,028,607  Interest 29,838 22,566 15,034 8,371 2,906 -0- $78.715  Total $ 249,194 248,758 249,093 202,371 157,906 -0- $1,107.322  The following is a summary of debt transactions for the Borough for the year ended December 31,2021:  Long Term_ $ 1,274,710 -0- (246,103) $ 1,028,607  Debt at. January 1,2021 Proceeds of Debt Issuance Principal Retired Debt at December: 31,2021  26    NOTESTOPRIMARYCOVERMMENT FINANCIALSTATEMENTS  December31,2021  NOTE7 7-1 FUND BALANCE REPORTING  At December 31, 2021, fund balances are: made up oft the following:  Restricted - Motor License  $ 31,438 43,598 1,940 276 2.717 79,969 $118.653 $ : 560,960 12.206 $573,166  Police Equipment Police Treasury DARE/Community Needs DTF  Committed - Recreation Assigned Capital Needs  DARE/Community Needs  NOTE8-I FIRE COMPANY. ADVANCE  In 2021, the Borough advanced the Community Fire Company of Cornwall Borough (Fire Company), $200,000 in anticipation of the Fire Company obtaining a Pennsylvania Emergency Management Agency (PEMA) loan to purchase ai fire truck. Within 30 days of receipt ofthe PEMA loan proceeds, thel Fire Company will repay the Borough at 0.00% interest. The Borough has agreed to make an annual contribution to the Fire Company in the amount oft the  debt service payments ofthe PEMA loan. NOTE9-DESIGNATED NET ASSETS  Borough Council has designated funds received from tapping fees be placed into capital improvement accounts. The Council has also designated funds be set aside for sinkhole repair and future vehicle needs. These funds are: reported as unrestricted net position on the Statement of Net Position. As of December 31,2021, designated unrestricted net  position consists ofthe following: Unrestricted, designated: Sinkhole repairs Meter replacement Valves and hydrants Waterline ROW cleaning Main Repair /R Replacement Chlorination System N. C Cornwall (Dairy Road) Update Act 5371 Plan Future EDU purchases Total Unrestricted, designated Unrestricted, other Total unrestricted net position  Water Fund $ 15,000 90,000 45,000 5,000 650,000 120,000 -0- -0- -0- $ 925,000 984,457 $ 1,909,457  Sewer Fund $ 15,000 90,000 -0- 5,000 30,000 500,000 20,000 150,000 $ 810,000 1,149,316 1,959,316  27    BOROUGH OF CORNWALL, PENNSYLVANIA  NOTES' TO: PRIMARY GOVERNMENTFINANCIALSTATEMENTS  December31,2021  NOTE 10-1 INTERMUNICIPALAGREEMENT  The Borough entered into a joint municipal agreement for law enforcement services with the Township of West Cornwall (W. Comwall) and contracts continue service through December 31, 2021, with an option to renew through December 31, 2022. The Borough agrees to provide law enforcement services to W. Cornwall and W. Cornwall agrees to pay specific incremental amounts to the Borough for these services. For the year ended December 31,2021, The Borough entered into aj joint municipal agreement for law enforcement services with the Borough of Mt. Gretna, through December 31, 2022. The Borough agrees to provide law enforcement services to the Borough of Mount Gretna. The Borough of Mount Gretna agrees toj pay specific incremental amounts to the Borough for these services. In October 1990, the Authority entered into a 20-year agreement with the City ofLebanon in which the City provides all water for the Authority's system at the City ofl Lebanon rate for thet then-current year. The agreement provides for two-yeare extensions after the first twenty: years with either party giving two years notice ifthey wish to terminate. In. January 1990, the Authority entered into an agreement with the City ofLebanon Authority to obtain capacity at the city wastewater treatment plant to process the Borough's wastewater. Capacity at the plant has been secured for 20 years, after which the City can claim unused capacity with 30 days written notice. The charge for this service shall be The Authority entered into an agreement dated December 1990 (amended 1992 and 1999) with North Cornwall Township Authority providing for the Cornwall Borough sewer system to discharge sewage into the North Cornwall sewer system, providing for the North Cornwall Township to purchase a joint interest in a portion of the Cornwall sewer line and providing sewer capacity for the parties in the Cornwall sewer line and the North Cornwall Township sewer system. The agreement provides for the shared maintenance oft the jointly used sewer lines and facilities. The agreement will remain in effect for an indefinite period unless Cornwall flows exceed certain capacity set forth in the agreement. The charge for the service is to be paid on a quarterly basis to North Cornwall Township Authority and  thel Borough received $176,493.  For the year ended December 31, 2021, the Borough received $39,109.  in accordance with the City's rates and can change to reflect the cost of operation.  can change to reflect the cost of operations. NOTE11- ECONOMICI DEPENDENCY wastewater as discussed in Note 10.  The City of Lebanon Authority provides the water for the system and the treatment of the Borough of Cornwall's  NOTE 12- REIMBURSEMENT AGREEMENT  The Authority entered into an agreement June 2009 with a developer/customer in which the Authority will receive $2,700 annually for 15 years in exchange for including certain developments on the high-pressure water system supplied by the Authority. Reimbursement began January 2010 and continue through. January 2023.  28    REQUIRED SUPPLEMENTARY INFORMATION    &  46    o  48    1    BOROUGH OF CORNWALL, PENNSYLVANIA REQUIRED SUPPLEMENTARY INFORMATION  STATEMENT OF REVENUES COLLECTED AND EXPENDITURESPAID-BUDGETTOACTUAL  CASH BASIS- GENERAL FUND For the Year Ended December31,2021  Variance from Final Budget Positive (Negative)  Original Budget 102,100 8,000 141,612 233,902 2,000 50,000  Final Budget 102,100 8,000 141,612 233,902 2,000 50,000  Actual 108,511 9,490 358,498 294,672 489 11,443  REVENUES COLLECTED Taxes Licenses and Permits Fines and Forfeits Intergovernmental Charges for Services Investment Earnings Miscellaneous  $1 1,773,000 $ 1,773,000 $ 2,025,311 $ 252,311  6,411 1,490 216,886 60,770 (1,511) (38,557)  Total Revenues Collected EXPENDITURES PAID General Government Public Safety Public Works- Highway Culture Recreation Debt Service Employer Paid Benefits and' Taxes Miscellaneous Total Expenditures Paid Excess (Defiency) of Revenues Collected Over Expenditures Paid OTHER FINANCING SOURCES (USES) Operating Transfers In Refund of Prior Year Expenses Operating Transfers Out  $2 2,310,614 $ 2,310,614 $ 2,808,414 $ 497,800 $ 321,583 $ 321,583 $ 349,550 $  (27,967) 24,371 80,122 (3,763) (462) 8,135 (5,406) 75,030  842,042 499,698 6,000 194,000 511,707 6,000  842,042 499,698 6,000 194,000 511,707 6,000  817,671 419,576 9,763 194,462 503,572 11,406  $2,381,030 $ 2,381,030 $ 2,306,000 $  $ (70,416) $ (70,416) $ 502,414 $ 572,830  $  -0- $ 1,000  -0- $ 1,000  -0-$ 5,953  -0- 4,953 (225,000)  (215,000) (215,000) (440,000)  Total Other Financing Sources (Uses) S ( (214,000) $ (214,000) $ (434,047) $ (220,047)  Excess (Deficiency) of Revenues Collected and Other Financing Sources Over Expenditures Paid and Other Financing Uses  $ (284,416) $ (284,416) $ 68,367 $ 352,783  32    SUPPLEMENTARY INFORMATION    $    $A  $A 2  6A!  6A  - CAl -  6A  6A! $A  6A    6A  $A  Al A  $A  6AI  5   $  $A    0  4  4 7  + &  4  - P  a  &  4  4 à  à  d0  0 &  13  A &    BOROUGH OF CORNWALL, PENNSYLVANIA SUPPLEMENTARY INFORMATION  COMBINING STATEMENT OF ASSETS AND LIABILITIES ARISING FROM  CASHTRANSACTIONS: - CAPITAL PROJECTSI FUNDS  December31,2021  Capital Projects Fund $ $  Capital Reserve Fund  Highway Equipment Fund  Total  ASSETS  Cash and Cash Equivalents Total Assets  594 $ 459,335 $ 101,031 $ 560,960 594 $ 459,335 $ 101,031 $ 560,960  FUND. BALANCE  Assigned  $ $  594 $ 459,335 $ 101,031 $ 560,960 594 $ 459,335 $ 101,031 $ 560,960  Total Fund Balance  35    BOROUGH OF CORNWALL, PENNSYLVANIA SUPPLEMENTARY INFORMATION AND CHANGES. INI FUNDI BALANCES-CASH BASIS CAPITALI PROJECTSFUNDS Year Ended December. 31, 2021  COMBINING: STATEMENTS OF REVENUES COLLECTED, EXPENDITURESPAID  Capital Projects Fund $ $ $  Capital Reserve Equipment Fund  Highway Fund  Total 123 -0- 123 -0- 54,143 -0-  REVENUES COLLECTED Interest Intergovernmental Total Revenues Collected EXPENDITURESPAID Equipment Purchases Capital Leasel Payments Miscellaneous Total Expenditures Paid Excess (Deficency) of Revenues Collected Over Expenditures Paid OTHER FINANCING SOURÇES (USES) Operating Transfers In Loan tol Fire Company Operating Transfers Out Total Other Financing Sources(Uses) Excess (Deficency) of Revenues Collected and Other Financing Sources Over Expenditures Paid and Other) Financing Uses  -0- $ 112 $ -0- $ 112 $ -0- $  11 $ 11 $ -0- $ 54,143  -0- $  $  -0- $  -0- $ - 54,143 $ 54,143  $ $  -0- $ 112 $ (54,132) $ (54,020) -0- $ 350,000 $ 60,000 $ 410,000  (200,000) 150,000  (200,000) -0-  -0-  60,000 $ 210,000  $  -0- I 150,112 $ 5,868 $ 155,980  Fund Balance January 1,2021 Fund Balance December 31, 2021  594 $ 594  309,223  95,163  404,980  459,335 $ 101,031 $ 560,960  36