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12
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/s/ LAZAR
LEVINE & FELIX LLP
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NEW
JERSEY RESOURCES CORPORATION
|
|
EMPLOYEES’
RETIREMENT SAVINGS PLAN
|
|
STATEMENTS OF NET ASSETS AVAILABLE FOR
BENEFITS
|
|
AS
OF DECEMBER 31, 2007 AND 2006
|
|
2007
|
2006
|
|||||||
|
ASSETS:
|
||||||||
|
Investments
at Fair Value
|
||||||||
|
Cash
|
$ | 329,144 | $ | 97,280 | ||||
|
Participant
directed investments:
|
||||||||
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Union
Bond and Trust Stable Value Fund
|
12,390,983 | 10,368,993 | ||||||
|
Wachovia
Diversified Bond Group Trust
|
2,662,823 | 2,518,839 | ||||||
|
Fidelity
Puritan Fund
|
5,535,436 | 4,958,191 | ||||||
|
Harbor
Capital Appreciation Fund
|
1,457,070 | 1,111,462 | ||||||
|
Wachovia
Enhanced Stock Market Fund
|
8,969,615 | 8,243,400 | ||||||
|
Vanguard
Windsor II Fund
|
7,773,545 | 7,458,655 | ||||||
|
T
Rowe Price Small Cap Value Fund
|
2,670,914 | 2,687,841 | ||||||
|
Franklin
Small Cap Growth Fund II
|
1,886,733 | 2,038,541 | ||||||
|
American
Funds Capital World Growth and Income Fund
|
6,422,200 | 4,499,423 | ||||||
|
Dodge
& Cox International Stock Fund
|
4,887,793 | 3,701,088 | ||||||
|
NJR
Common Stock 401(k) Fund
|
5,788,036 | 5,530,596 | ||||||
|
Total
Participant-directed investments
|
60,445,148 | 53,117,029 | ||||||
|
Non-participant-directed
investments:
|
||||||||
|
NJR
Common Stock ESOP
|
24,808,290 | 25,372,260 | ||||||
|
Union
Bond and Trust Stable Value Fund
|
109,695 | 86,692 | ||||||
|
Fidelity
Puritan Fund
|
23,863 | — | ||||||
|
Total
Non-participant-directed investments
|
24,941,848 | 25,458,952 | ||||||
|
Participant
Loans
|
2,500,909 | 2,285,321 | ||||||
|
Total
investments
|
88,217,049 | 80,958,582 | ||||||
|
Receivables:
|
||||||||
|
Employer
contributions
|
52,371 | 45,142 | ||||||
|
Total
receivables
|
52,371 | 45,142 | ||||||
|
Total
assets
|
88,269,420 | 81,003,724 | ||||||
|
LIABILITIES:
|
||||||||
|
Payables
for securities purchased
|
329,144 | 97,280 | ||||||
|
Total
liabilities
|
329,144 | 97,280 | ||||||
|
NET
ASSETS REFLECTING ALL INVESTMENTS AT FAIR VALUE
|
87,940,276 | 80,906,444 | ||||||
|
Adjustments
from fair value to contract value:
|
||||||||
|
Union
Bond and Trust Stable Value Fund
|
100,994 | 205,905 | ||||||
|
NET
ASSETS AVAILABLE FOR BENEFITS
|
$ | 88,041,270 | $ | 81,112,349 | ||||
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NEW
JERSEY RESOURCES CORPORATION
|
|
EMPLOYEES’
RETIREMENT SAVINGS PLAN
|
|
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
|
|
FOR
THE YEARS ENDED DECEMBER 31, 2007 AND
2006
|
|
2007
|
2006
|
|||||||
|
ADDITIONS:
|
||||||||
|
Investment
income:
|
||||||||
|
Interest
|
$ | 189,212 | $ | 138,128 | ||||
|
Dividends
|
4,103,818 | 2,479,957 | ||||||
|
Net
appreciation in fair value of investments
|
1,012,303 | 8,385,478 | ||||||
|
Net
investment income
|
5,305,333 | 11,003,563 | ||||||
|
Contributions:
|
||||||||
|
Employer
contributions
|
1,308,008 | 1,179,275 | ||||||
|
Employee
contributions
|
4,268,418 | 3,881,959 | ||||||
|
Employee
rollover contributions
|
379,563 | 53,574 | ||||||
|
Total
contributions
|
5,955,989 | 5,114,808 | ||||||
|
Total
additions
|
11,261,322 | 16,118,371 | ||||||
|
DEDUCTIONS:
|
||||||||
|
Benefits
paid to participants
|
4,019,585 | 4,593,666 | ||||||
|
Administrative
expenses
|
207,905 | 182,310 | ||||||
|
Total
deductions
|
4,227,490 | 4,775,976 | ||||||
|
INCREASE
IN NET ASSETS
|
7,033,832 | 11,342,395 | ||||||
|
(Decrease)
increase in the change of fair value to contract value
|
(104,911 | ) | 19,637 | |||||
|
NET
ASSETS AVAILABLE FOR BENEFITS:
|
||||||||
|
BEGINNING
OF YEAR
|
81,112,349 | 69,750,317 | ||||||
|
END
OF YEAR
|
$ | 88,041,270 | $ | 81,112,349 | ||||
|
NEW
JERSEY RESOURCES CORPORATION
|
|
EMPLOYEES’ RETIREMENT
SAVINGS PLAN
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
1. PLAN
DESCRIPTION
|
|
New
Jersey Resources Corporation Employees’ Retirement Savings Plan (the Plan)
is administered through a Benefits Administration Committee (the
Committee) appointed by New Jersey Resources Corporation’s (the Company or
NJR) Board of Directors and administers the Plan in accordance with the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
|
|
The
following description of the Plan is provided for general information
only. Participants should refer to the Plan document for more complete
information. The Plan is a defined contribution plan.
|
|
The
Plan contains a savings component and an employee stock ownership plan
component, as described below.
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Savings
Component
|
|
General -
The Savings component is represented by deferred pre-tax
contributions, after-tax contributions and employer matching
contributions.
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All
employees of the Company and its subsidiaries who have completed 30 days
of service are eligible to participate on a voluntary
basis.
|
|
Contributions
- Under the Savings component, eligible employees may make
contributions of between 1% and 30% of base compensation to the Plan and
shall be permitted as pre-tax contributions provided that they are within
the calendar year dollar limit in effect for 401(k) contributions. The
Company contributes an amount equal to 50% of the first 6% of contributing
participants’ base compensation, subject to certain exceptions as
described in the Plan. The participants' contributions, plus actual
earnings thereon, are fully vested at all times. The Company's
contributions vest on the basis of service ranging from 25% after two
years, 50% after three years, 75% after four years, and 100% after five
years. Any forfeiture is treated as a reduction to employer
contributions.
|
|
Effective
October 1, 2000, certain employees of NJR Home Services Company who are
not covered by the Plan for Retirement Allowances for Represented
Employees of New Jersey Natural Gas Company and have one or more year(s)
of service receive an annual Company contribution equal to 2% of base
compensation for employees with less than five years of service and a 3%
contribution for employees with five or more years of service. The
contribution is invested automatically in the Union Bond and Trust Stable
Value Fund and cannot be reallocated to other investments nor is it
eligible for employee loans. The Company contributed $52,371 and $45,142
related to these employees for the Plan years ended December 31, 2007 and
2006, respectively and the amounts are included in employer contributions
receivable in the Statement of Net Assets Available for
Benefits.
|
|
Effective
January 1, 2002, employees who have both reached the minimum age of 50 and
the 401K elective deferral limit by the end of the Plan year, may elect to
contribute up to an additional $5,000 in pre-tax non-matchable
contributions for both of the plan years ended December 31, 2007 and
2006.
|
|
Contributions
by employees are made primarily through payroll deductions. The Plan also
accepts qualified roll-over contributions from eligible employees. As
directed by the Committee, contributions by employees and the Company are
transferred to a Trustee and held in the Plan's Trust Fund for investment
and other transactions.
|
|
Payment of
Benefits - Participants, prior to retirement or termination of
service with the Company, may withdraw their contributions from the
Savings component subject to certain limitations as described in the Plan.
Participants may not withdraw the Company's contributions until they
become vested. Withdrawal of deferred contributions may generally be made
only upon disability, hardship or the attainment of age
59-1/2.
|
|
Distributions
made upon retirement or death may be made either in a lump sum or in equal
installments over a period not to exceed five years. All other
distributions are made in a lump sum payment. Benefits to participants are
recorded when they are eligible to be
received.
|
|
Participant
Loans - The Plan may loan to a participant an amount that shall not
exceed the lesser of 50% of the value of the vested portion of such
participant's account, or $50,000. The minimum participant loan must be
for $1,000 and no participant may have more than two loans outstanding at
any time. No loan shall be for a term of more than five years except for
loans used to acquire the participant's principal residence, which term
shall not exceed ten years. The loans are secured by the balance in the
participant’s account. Interest rates range from 5% - 10% at December 31,
2007 and 2006.
|
|
Principal
and interest are paid ratably through payroll deductions. A participant
may repay any such loan in full by check at any time in accordance with
such rules as may be prescribed by the Committee. Payments of principal
and interest on loans shall be credited to the participant's account(s)
from which the loan was funded and shall be reinvested in investment funds
in accordance with the participant's then current investment
selection.
|
|
The
interest rate for loans will be the current prime lending rate of Wachovia
Bank N.A. (the Plan Directed Trustee) plus 1% or such other rate as is
prescribed by the Committee based on periodic re-evaluations of the
adequacy of such rate. The fixed rate of interest shall apply to the term
of each loan.
|
|
Participant
Accounts - Individual accounts are maintained for each Plan
participant. Each participant’s account is credited with the participant’s
contribution, Company’s matching contribution, and Plan earnings, and
charged with withdrawals and an allocation of Plan losses and
administrative expenses. Allocations are based on participant earnings or
account balances, as defined. The benefit to which a participant is
entitled is the benefit that can be provided from the participant’s vested
account.
|
|
Investments
- Participants direct the investment of their contributions into various
investment options offered by the Plan. Except as previously noted,
Company contributions are invested at the same percentage in the same
investment options as the participant directed investments. The Plan
currently offers eleven investment options for
participants.
|
|
Forfeited
Accounts - At December 31, 2007 and 2006, forfeited non-vested
accounts totaled $29,357 and $5,446 respectively. Forfeited amounts are
used to reduce employer contributions in the following year. During the
years ended December 31, 2007 and 2006, employer contributions were
reduced by $5,446 and $18,855, respectively from forfeited, non-vested
accounts.
|
|
Employee Stock
Ownership Plan Component (ESOP)
|
|
General
- Effective October 1, 1994, investment in the ESOP was closed to future
employees. The ESOP component is represented by amounts held by the Plan
Trustee in Company stock (NJR Common Stock). Until September 30, 1994, all
employees of the Company and its subsidiaries who had attained age 21 and
completion of one year of service were eligible to participate. All
participants’ respective shares of NJR Common Stock are 100%
vested.
|
|
Payment of
Benefits - Distributions to ESOP participants may be made in the
case of separation of service or attainment of age 55 and completion of at
least 10 years of participation, and may be in the form of full shares of
the Company's common stock and cash in lieu of fractional shares. ESOP
participants may also elect to receive their total distribution in cash.
Effective January 1, 2006, ESOP participants will also be able to transfer
all or part of their account balance to any of the other 401(k) plan
investment options, including NJR Common Stock. If and when the
participants make a transfer, they will be able to use that money for the
allowable in-service withdrawals and plan
loans.
|
|
The
following amounts related to the ESOP were included in dividend income and
net appreciation in fair value of investments for the years ended December
31:
|
|
2007
|
2006
|
||||||||
|
Dividend
income
|
$ | 773,459 | $ | 786,077 | |||||
|
Net
appreciation in fair value of investments
|
$ | 693,561 | $ | 3,682,269 | |||||
|
2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
||
|
Basis of
Accounting - The accompanying financial statements have been
prepared in accordance with accounting principles generally accepted in
the United States of America.
|
||
|
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 the
reported amounts of assets, liabilities, and changes therein and
disclosure of contingent assets and liabilities. Actual results could
differ from those estimates.
|
||
|
Risks and
Uncertainties -
The Plan utilizes various investment instruments, including mutual
funds and investment contracts. Investment securities, in general, are
exposed to various risks, such as interest rate, credit, and overall
market volatility. Due to the level of risk associated with certain
investment securities, it is reasonably possible that changes in the
values of investment securities will occur in the near term and such
changes could materially affect the amounts reported in the financial
statements.
|
||
|
Investment
Valuation and Income Recognition - The Plan’s
investments in mutual funds and common stock are stated at fair value.
Quoted market prices are used to value investments. Shares of mutual funds
are valued at quoted market prices, which represent the net asset value of
shares held by the Plan at year end. Participant loans are valued at the
outstanding loan balances.
|
||
|
Purchases
and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. Dividends on NJR Common Stock in both the Savings
Component and ESOP are automatically reinvested unless the participant
elects a distribution.
|
||
|
Management
fees and operating expenses charged to the Plan for investments in the
mutual funds are deducted from income earned on those investment funds and
are not separately stated. Consequently, management fees and operating
expenses are reflected as a reduction of investment return for such
investments.
|
||
|
Valuation
of Investments (Securities with No Quoted Market Prices) - Amounts
for securities that have no quoted market price represent estimated fair
value. Many factors are considered in arriving at that fair value.
Investments in common collective trusts include the Diversified Bond (DB)
Fund of Wachovia, the Enhanced Stock Market (ESM) Fund of Wachovia and the
Stable Value (SV) Fund of the Union Bond and Trust Company formerly known
as Gartmore Morely. The DB and ESM funds are valued at the net asset value
of the shares held by the Plan at year end, which is based on the fair
value of the underlying assets. The values recorded in the Plan’s
financial statements for such funds were $2,662,823 and $8,969,615 at
December 31, 2007 and $2,518,839 and $8,243,400 at December 31, 2006,
respectively.
|
||
|
The
SV fund invests in a series of guaranteed and synthetic guaranteed
investment contracts, which are designed to provide a high level of
return, consistent with and providing for stability of investment returns,
preservation of capital, liquidity to pay plan benefits, high credit
quality and reasonable tracking of interest rates. The guaranteed
investment contracts or synthetic investment contracts (collectively, “the
contracts”) are issued by life insurance companies, banks and other
financial institutions. The characteristics of these contracts allow for
their principal value to remain stable regardless of the volatility of the
bond market. The S&P and Moody’s credit ratings of the issuers of the
contracts range from AAA to AA- and Aaa to Aa3,
respectively.
|
||
|
As
of December 31, 2007 and 2006, respectively, all investment contracts held
by the SV fund were deemed fully benefit-responsive within the meaning of
the FSP AAG INV-1, Reporting of Fully
Benefit-Responsive Investment Contracts Held by Certain Investment
Companies Subject to the AICPA Investment Company Audit Guide and
Defined-Contribution Health and Welfare and Pension Plans (the
FSP), which requires that the investment contracts be reflected at
contract value.
|
||
|
The
change in the difference between the fair value and the contract value of
the SV fund’s fully benefit-responsive investment contracts as of December
31 were as follows (in thousands,
unaudited):
|
|
2007
|
2006
|
||||||||
|
Investments
at Fair Value
|
$ | 3,593,114 | $ | 3,697,489 | |||||
|
Adjustment
to Contract Value
|
28,167 | 71,245 | |||||||
|
Investments
at Contract Value
|
$ | 3,621,281 | $ | 3,768,734 | |||||
|
The
Plan’s participant investment balances held in the SV fund had a fair
value of approximately $12.5 million and $10.5 million as of December 31,
2007 and 2006, respectively. The corresponding approximate contract value,
based on the underlying contract value of the SV as provided by the fund,
is approximately $12.6 million and $10.7 million as of December 31, 2007
and 2006, respectively.
|
|
Administrative
Expenses - Certain administrative expenses of the Plan are paid by
the Company as provided in the Plan Document.
|
|
Payment of
Benefits - Benefit payments to participants are recorded upon
distribution. Amounts allocated to accounts of persons who have elected to
withdraw from the plan but have not yet been paid were $729 and $1,787 as
of December 31, 2007 and 2006, respectively.
|
|
3. ACCOUNTING
PRONOUNCEMENTS
|
|
In
September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements,”
(SFAS 157), which defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and
expands disclosures about fair value measurements. SFAS 157 applies
whenever other standards require (or permit) assets or liabilities to be
measured at fair value, and therefore, does not expand the use of fair
value in any new circumstances. Fair value refers to the price that would
be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants in the market in which the Plan
transacts. SFAS 157 clarifies that fair value should be based on the
assumptions market participants would use when pricing an asset or
liability and establishes a fair value hierarchy that prioritizes the
information used to develop those assumptions. The fair value hierarchy
gives the highest priority to quoted prices in active markets and the
lowest priority to unobservable data. SFAS 157 requires fair value
measurements to be separately disclosed by level within the fair value
hierarchy. While not expanding the use of fair value, SFAS 157 may change
the measurement of fair value. Any change in the measurement of fair value
would be considered a change in estimate and included in the results of
operations in the period of adoption. SFAS 157 is effective for fiscal
years beginning after November 15, 2007. Accordingly, the Plan expects to
adopt the provisions of SFAS 157 for the year ended December 31, 2008. The
Plan does not expect the adoption of the provisions of SFAS 157 to have a
material effect on the Plan’s financial condition and results of
operations.
|
|
4. INVESTMENTS
|
|
The
following investments represent five percent or more of the fair market
value of the Plan’s net assets as of December 31, 2007 and
2006:
|
|
2007
|
2006
|
||
|
NJR
Common Stock ESOP*, 968,828 and 1,020,224 units,
respectively
|
$24,808,290
|
$25,372,260
|
|
|
NJR
Common Stock 401K Fund, 254,060 and 247,556 units,
respectively
|
$ 5,788,036
|
$ 5,530,597
|
|
|
Union
Bond and Trust Stable Value Fund
**, 602,715 and 530,830 shares, respectively
|
$12,500,678
|
$10,445,685
|
|
|
Wachovia
Enhanced Stock Market Fund, 85,298 and 83,000 shares,
respectively
|
$ 8,969,615
|
$ 8,243,400
|
|
|
Vanguard
Windsor II Fund, 140,089 and 120,905 shares, respectively
|
$ 7,773,545
|
$ 7,458,655
|
|
|
Fidelity
Puritan Fund, 292,133 and 248,282 shares, respectively
|
$ 5,559,299
|
$ 4,958,191
|
|
|
American
Fund, 143,963 and 107,308 shares, respectively
|
$ 6,422,200
|
$ 4,499,423
|
|
|
Dodge
& Cox International Stock Fund, 106,210 shares in 2007
***
|
$ 4,887,793
|
—
|
|
|
*
|
Non-participant
directed
|
|
**
|
A
portion of this investment is non-participant directed. See Note 5 for
more information
|
|
***
|
Balance
at December 31, 2006 represented less than five percent of the Plan’s net
assets
|
|
During
the years ended December 31, 2007 and 2006, the Plan’s investments
(including gains and losses on investments bought and sold, as well as
held during the year) appreciated (depreciated) in value as
follows:
|
|
2007
|
2006
|
||
|
Common
Trust Funds
|
$ 618,912
|
$1,295,013
|
|
|
Common
Stock Funds
|
914,818
|
4,427,847
|
|
|
Fidelity
Puritan Fund
|
(281,785)
|
299,926
|
|
|
T
Rowe Price Small Cap Value Fund
|
(347,256)
|
231,992
|
|
|
Franklin
Small Cap Growth Fund II
|
(288,299)
|
(25,787)
|
|
|
MFS
Massachusetts Investors Growth Stock Fund
|
—
|
(15,320)
|
|
|
Templeton
Foreign Fund
|
—
|
151,750
|
|
|
American
Funds Capital World Growth and Income Fund
|
253,820
|
519,230
|
|
|
Union
Bond and Trust Stable Value Fund
|
586,015
|
360,192
|
|
|
Harbor
Capital Appreciation
|
120,235
|
69,342
|
|
|
Vanguard
Windsor II Fund
|
(762,820)
|
686,094
|
|
|
Dodge
& Cox International Stock
|
198,663
|
385,199
|
|
|
Net
Appreciation
|
$1,012,303
|
$8,385,478
|
|
|
5. NON-PARTICIPANT
DIRECTED INVESTMENTS
|
|
Information
about the net assets and the significant components of the changes in net
assets relating to the non-participant-directed investments as of December
31, 2007 and 2006, and for the years ended December 31, 2007 and 2006 is
as follows:
|
|
2007
|
2006
|
|||||||
|
Net
assets:
|
||||||||
|
NJR
Common Stock ESOP
|
$ | 24,808,290 | $ | 25,372,260 | ||||
|
Union
Bond and Trust Stable Value Fund
|
109,695 | 86,692 | ||||||
|
Fidelity
Puritan Fund
|
23,863 | — | ||||||
|
Total
non-participant directed investments
|
$ | 24,941,848 | $ | 25,458,952 | ||||
|
Changes
in net assets:
|
||||||||
|
NJR Common Stock
ESOP
|
||||||||
|
Net
appreciation in fair value of investments
|
$ | 1,494,835 | $ | 4,472,365 | ||||
|
Benefits
paid to participants
|
(1,679,036 | ) | (1,574,169 | ) | ||||
|
Transfers
to participant-directed investments
|
(379,769 | ) | (1,228,262 | ) | ||||
|
Net
change
|
(563,970 | ) | 1,669,934 | |||||
|
NJR
Common Stock ESOP – beginning of year
|
25,372,260 | 23,702,326 | ||||||
|
NJR
Common Stock ESOP – end of year
|
$ | 24,808,290 | $ | 25,372,260 | ||||
|
Union Bond and Trust
Stable Value Fund
|
||||||||
|
Net
appreciation in fair value of investments
|
$ | 1,614 | $ | 2,392 | ||||
|
Administrative
expenses
|
(36 | ) | (11 | ) | ||||
|
Employer
contributions
|
21,425 | 29,373 | ||||||
|
Net
change
|
23,003 | 31,754 | ||||||
|
Union
Bond and Trust Stable Value Fund – beginning of year
|
86,692 | 54,938 | ||||||
|
Union
Bond and Trust Stable Value Fund – end of year
|
$ | 109,695 | $ | 86,692 | ||||
|
Fidelity Puritan
Fund
|
||||||||
|
Net
appreciation in fair value of investments
|
$ | 150 | — | |||||
|
Administrative
expenses
|
(4 | ) | — | |||||
|
Employer
contributions
|
23,717 | — | ||||||
|
Net
change
|
23,863 | — | ||||||
|
Fidelity
Puritan Fund – beginning of year
|
— | — | ||||||
|
Fidelity
Puritan Fund – end of year
|
$ | 23,863 | — | |||||
|
6. FEDERAL
INCOME TAX STATUS
|
|
The
Internal Revenue Service has determined and informed the Plan by letter
dated July 17, 2003, that the Plan and related trust were designed in
accordance with the applicable sections of the Internal Revenue Code (the
Code). The Plan has been amended since receiving the determination letter;
however, the Plan Administrator and the Plan’s tax counsel believe that
the Plan is designed and is currently being operated in compliance with
the applicable requirements of the Code, and that the Plan and the related
trust continue to be tax-exempt. Therefore, no provision for income taxes
has been included in the Plan’s financial statements.
|
|
7. PLAN
TERMINATION
|
|
Although
it has not expressed any intention to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions set forth in ERISA. In the
event that the Plan is terminated, participants would become 100% vested
in their accounts, including unvested Company
contributions.
|
|
8. RECONCILIATION
OF FINANCIAL STATEMENTS TO FORM 5500
|
|
The
financial statements have been prepared on the accrual basis in conformity
with generally accepted accounting principles in the United States of
America. The Form 5500 is presented on the cash basis.
|
|
The
following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500.
|
|
December
31,
|
|||||||||
|
2007
|
2006
|
||||||||
|
Net
assets available for benefits per the financial statements
|
$ | 88,041,270 | $ | 81,112,349 | |||||
|
Less:
Amounts due from employer per the financial statements
|
(52,371 | ) | (45,142 | ) | |||||
|
Less:
Adjustments from contract value to fair value
|
(100,994
|
) |
—
|
||||||
|
Net
assets available for benefits per Form 5500
|
$ |
$87,887,905
|
$ | 81,067,207 | |||||
|
December
31,
|
|||||||||
|
2007
|
2006
|
||||||||
|
Contributions received from employer per the financial
statements
|
$ | 1,308,008 | $ | 1,179,275 | |||||
|
Less: Contributions receivable from employer per the financial
statements
|
(52,371 | ) | (45,142 | ) | |||||
|
Add: Contributions receivable from employer per the financial
statements
|
45,142 | 29,373 | |||||||
|
Contributions received from employer per Form
5500
|
$ | 1,300,779 | $ | 1,163,506 | |||||
|
9. EXEMPT
PARTY-IN-INTEREST TRANSACTIONS
|
|
Certain
Plan investments are shares of mutual funds managed by Wachovia. Wachovia
is the Plan Trustee and certain plan assets are invested in the Wachovia
Common Trust Funds, therefore, these transactions qualify as exempt
party-in-interest transactions.
|
|
Fees
paid by the Plan to the Trustee amounted to $207,905 and $182,310 for the
years ended December 31, 2007 and 2006, respectively.
|
|
At
December 31, 2007 and 2006, the Plan held 1,222,887 units and 1,267,780
units, respectively, of common stock of New Jersey Resources Corporation,
the sponsoring employer, with a cost basis of $16,701,672 and $16,647,369,
respectively. During the years ended December 31, 2007 and 2006, the Plan
recorded dividend income of $969,029 and $942,881,
respectively.
|
|
Certain
employees and officers of the Company, who may also be participants in the
Plan, perform administrative services to the Plan at no cost to the Plan.
These party-in-interest transactions are not deemed prohibited because
they are covered by statutory or administrative exemptions from the Code
and ERISA’s rules on prohibited
transactions.
|
|
NEW
JERSEY RESOURCES CORPORATION
|
|
EMPLOYEES’
RETIREMENT SAVINGS PLAN
|
|
FORM 5500, SCHEDULE H, PART IV, LINE
4i---
|
|
SCHEDULE
OF ASSETS (HELD AT END OF YEAR)
|
|
AS
OF DECEMBER 31, 2007
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
Lessor,
or Similar Party Identity of Issue, Borrower
|
Description
of Investment, Including Maturity Date, Rate of Interest, Collateral, and
Par or Maturity Value
|
Cost
|
Current
Value
|
||
|
Banks
|
Cash
|
**
|
$ 329,144
|
||
|
*
|
NJR
Common Stock 401(K) Fund
|
Common
Stock
|
**
|
5,788,036
|
|
|
*
|
Wachovia
Bank, N.A. Diversified Bond Group Trust
|
Common
Trust Funds
|
**
|
2,662,823
|
|
|
*
|
Wachovia
Bank, N.A. Enhanced Stock Market Fund
|
Common
Trust Funds
|
**
|
8,969,615
|
|
|
Union
Bond and Trust Stable Value Fund
|
Common
Trust Funds
|
**
|
12,390,983
|
||
|
Fidelity
Puritan Fund
|
Mutual
Funds
|
**
|
5,535,436
|
||
|
Franklin
Small Cap Growth Fund II
|
Mutual
Funds
|
**
|
1,886,733
|
||
|
Harbor
Capital Appreciation Fund
|
Mutual
Funds
|
**
|
1,457,070
|
||
|
T
Rowe Price Small Cap Value Fund
|
Mutual
Funds
|
**
|
2,670,914
|
||
|
Vanguard
Windsor II Fund
|
Mutual
Funds
|
**
|
7,773,545
|
||
|
American
Funds Capital World Growth and Income Fund
|
Mutual
Funds
|
**
|
6,422,200
|
||
|
Dodge
& Cox International Stock Fund
|
Mutual
Funds
|
**
|
4,887,793
|
||
|
*
|
Various
participants
|
Participant
loans (maturing 2008-2015 at interest rates of 5%-10.5%)
|
**
|
2,500,909
|
|
|
*
|
NJR
Common Stock ESOP
|
Common
Stock
|
$10,962,057
|
24,808,290
|
|
|
Union
Bond and Trust Stable Value Fund
|
Common
Trust Funds
|
109,695
|
109,695
|
||
|
Fidelity
Puritan Fund
|
Mutual
Funds
|
23,863
|
23,863
|
||
|
$11,095,615
|
$88,217,049
|
||||
|
*
|
Party-in-interest
|
|||
|
**
|
Cost
information is not required for participant-directed investment and,
therefore, is not included
|
|||
|
New Jersey Resources
Service Corporation
|
||
|
Employees’ Retirement
Savings Plan
|
||
|
Date: June
18, 2008
|
By:
|
/s/ Deborah G.
Zilai
|
|
Deborah
G. Zilai
|
||
|
Plan
Administrator
|
||
|
/s/ Glenn C.
Lockwood
|
||
|
Glenn
C. Lockwood
|
||
|
Plan
Sponsor
|
|
|
EXHIBIT INDEX
|
|
|
Exhibit
Number
|