EXHIBIT B-1
(Page 1 of 2)
MIDDLETOWN TOWNSHIP BOARD OF EDUCATION
COMBINED BALANCE SHEET
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2004
(With Comparative Totals for June 30, 2003)
TOTALS
SPECIAL CAPITAL DEBT (MEMORANDUM ONLY)
GENERAL REVENUE PROJECTS SERVICE PERMANENT JUNE 30, JUNE 30,
ASSETS FUND FUND FUND FUND FUND 2004 2003
  Cash and Cash Equivalents $11,889,476 1,402,214 8,058,254 618,903 21,968,847 28,767,763
  Receivables, Net 76,044 35,820 111,864 122,047
  Due From Other Funds 210,854 210,854 632,252
  Receivables From Other Governments 438,630 15,286 139,878 593,794 1,126,149
  Other Receivables 395,800 395,800 10,531
  Restricted Cash & Cash Equivalents           204,136
   
Total Assets $12,799,950 1,453,320 8,198,132 210,854 618,903 23,281,159 30,862,878
LIABILITIES & FUND BALANCES
   Liabilities:
      Cash Overdraft 42,076 42,076 599,328
      Accounts Payable $2,292,874 37,101 183,544 2,513,519 3,128,653
      Intergovernmental - Accounts Payable 35,820 35,820 38,395
      Other Liabilities 658,955 220,678 879,633 859,481
      Interfund Payable 16,909 210,854 227,763 632,252
      Deferred Revenue 1,159,721 1,159,721 1,545,720
             
    Total Liabilities 2,968,738 1,453,320 394,398 42,076   4,858,532 6,803,829
   Fund Balances:
     Reserved for:
         Encumbrances 2,222,109 7,229,109 9,451,218 15,204,519
         Capital Reserve Account 204,136
         Excess Surplus 1,177,310 1,177,310
         2005-06 per S-1701 1,000,000 1,000,000
         I.B.N.R. 1,721,700 1,721,700 1,473,200
EXHIBIT B-1
(Page 2 of 2)
MIDDLETOWN TOWNSHIP BOARD OF EDUCATION
COMBINED BALANCE SHEET
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2004
(With Comparative Totals for June 30, 2003)
TOTALS
SPECIAL CAPITAL DEBT (MEMORANDUM ONLY)
GENERAL REVENUE PROJECTS SERVICE PERMANENT JUNE 30, JUNE 30,
LIABILITIES & FUND BALANCES FUND FUND FUND FUND FUND   2004   2003
  Fund Balances (continued):
      Unreserved - Reported in:
         Unrestricted - Designated for
            Subsequent Year's Expenditures 1,836,490 1,836,490 1,500,000
          General Fund 1,873,603 1,873,603 4,367,096
          Debt Service Fund 168,778 168,778 3,918
          Capital Projects Fund 574,625 574,625 667,034
          Permanent Fund 618,903 618,903 639,146
             
    Total Fund Balances 9,831,212   7,803,734 168,778 618,903 18,422,627 24,059,049
   
Total Liabilities & Fund Balances $12,799,950 1,453,320 8,198,132 210,854 618,903
Amounts reported for governmental activities in the statement of
 net assets (A-1) are different because:
   Capital assets used in governmental activities are not financial
     resources and therefore are not reported in the funds.  The cost 
     of the assets is $134,990,282 and the accumulated depreciation   
      is $32,027,216. 102,963,066 97,311,235
    Accrued interest payable is not recorded in the fund financial
     due to the fact that payable is not due in the current period. (3,059,550) (3,267,801)
   Long-term liabilities, including bonds payable, are not due and 
     payable in the current period and therefore are not reported as
     liabilities in the funds (see Illustrative Note 5) (95,048,882) (99,308,017)
 
   Net assets of Governmental Activities $23,277,261 18,794,466
See Accompanying Notes to Financial Statements