HomeMy WebLinkAbout2019 I %3THO4,0
AN 4
RF DIST NO
SOUTHOLD FIRE DISTRICT
P.O. BOX 908. SOUTHOLD, N.Y. 11971
(631) 765-4305
FAX (631) 765-5076
RECEIVED
August 19, 2020
AUG 3 1 2020
Town of Southold Southold Town Clerk
Southold Town Hall
Main Road, P.O. Box 1179
Southold,New York 11971
Re: Southold Fire District
Dear Sir/Madam:
In connection with the above matter, enclosed herewith please find a copy of the
Auditor's Report prepared by Cullen&Danowski, LLP for the fiscal period beginning on
January 1, 2019 and ending on December 31, 2019.
If you have should have any questions or problems, please do not hesitate to
contact me at 765-4305, x 27.
Sincerely,
o . Miller
Fire District Secretary
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Southold Fire District
Financial Statements (Regulatory Basis)
with Independent Auditor's Report
December 31, 2019
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SOUTHOLD FIRE DISTRICT
Table of Contents
December 31,2019
Page
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Independent Auditor's Report 1
Basic Financial Statements(Regulatory Basis)
Balance Sheet-Governmental Funds and Account Groups 3
Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds 4
Statement of Fiduciary Net Position-Fiduciary Fund 5
Notes to Financial Statements 6
Other Supplementary Information
Schedule of Revenues,Expenditures and Changes in Fund Balance
-Budget and Actual-General Fund-Operating 22
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Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 23
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� VINCENT D.CULLEN,CPA
(1950-2013)
CULLENA, DA�NQWWSK1, LLP 10
CERTIFIEDPUBI!ICLACC NTANTS JAMES ,CPA
_ PETER F..RODRIGUDRIGUEZ,CPA
JILL S.SANDERS,CPA
DONALD J.HOFFMANN,CPA
p CHRISTOPHER V.REINO,CPA
INDEPENDENT AUDITOR'S REPORT ALAN YU,CPA
To the Board of Fire Commissioners
- Southold Fire District
Southold,New York
j Report on Financial Statements
We have audited the accompanying financial statements (regulatory basis) of the Southold Fire District,as of
and for the year ended December 31, 2019, and the related notes to the financial statements, as listed in the
table of contents.
} Management's Responsibility for the Financial Statements
sou
Management is responsible for the preparation and fair presentation of these financial statements in
7 accordance with the financial reporting provisions of the New York State Office of the State Comptroller, as
described in Note 1,to meet the reporting requirements of New York State. 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 to fraud or error.
-° Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in GovernmentAuditing Standards,issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
j financial statements. The procedures selected depend on the auditor's judgment,including the assessment of
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 District'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 District'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 presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Basis for Adverse Opinion on U.S.Generally Accepted Accounting Principles
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As described in Note 1,the financial statements are prepared by the Southold Fire District, on the basis of the
financial reporting provisions of the New York State Office of the State Comptroller, which is a basis of
accounting other than accounting principles generally accepted in the United States of America, to meet the
- requirements of the New York State Office of the State Comptroller.
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1650 ROUTE 112,PORT JEFFERSON STATION,NEW YORK 11776-3060
PHONE:631-473-3400•FAX:631-473-4863•WWW.CDLLP.NET
The effects on the financial statements of the variances between the regulatory basis of accounting described
i in Note 1 and accounting principles generally accepted in the United States of America,although not reasonably
determinable,are presumed to be material.
Adverse Opinion on U.S.Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on U.S.
Generally Accepted Accounting Principles" paragraph, the financial statements referred to above do not
present fairly,in accordance with accounting principles generally accepted in the United States of America,the
financial position of the Southold Fire District,as of December 31,2019,and the respective changes in financial
position for the year then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective
financial position of each fund and account group of the Southold Fire District, as of December 31, 2019, and
their respective changes in financial position for the year then ended,in accordance with the financial reporting
provisions of the New York State Office of the State Comptroller as described in Note 1.
Other Matters
Other Information
' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Southold Fire District's basic financial statements. The other supplementary information on page
22 is presented for purposes of additional analysis and is not a required part of the basic financial statements.
The other supplementary information is the responsibility of management and was derived from and relates
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 statement's
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial 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 other supplementary information is fairly stated,
in all material respects, in relation to the basic financial statements as a whole on the basis of accounting
described in Note 1.
Other Reporting Required by Government Auditing Standards
In accordance with GovernmentAuditing Standards,we have also issued our report dated June 29,2020,on our
- consideration of the Southold Fire District's internal control over financial reporting and our tests of its
_ compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
�! The purpose of that report is solely to describe the scope of our testing of internal control over financial
1 reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of
_ the Southold Fire District's internal control over financial reporting or on compliance.That report is an integral
} ( part of an audit performed in accordance with Government Auditing Standards in considering Southold Fire
District's internal control over financial reporting and compliance.
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_� June 29,2020
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SOUTHOLD FIRE DISTRICT
Balance Sheet-Governmental Funds and Account Groups
December 31,2019
Governmental Funds Account Groups
Non-Current Non-Current
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General Capital Governmental Governmental
Fund Projects Assets Liabilities Total
ASSETS
1 Cash
Unrestricted $ 899,476 $ 100 $ $ $ 899,576
Restricted 1,465,642 79,322 1,544,964
_ Due from other funds 3,437 3,437
102,862
102,862
Prepaids 715,686
r Land 715,686
Buildings and improvements 5,264,488 5,264,488
Equipment 4,317,774 4,317,774
Amount to be provided for
retirement of long-term debt 1,533,379 1,533,379
- Total Assets $ 2,471,417 $ 79,422 $ 10,297,948 $ 1,533,379 $ 14,382,166
LIABILITIES
Accounts payable $ 83,774 $ $ $ $ 83,774
Accrued liabilities 6,829 6'829
Due to other funds 3,437 3,437
Bonds payable 1,500,000 1,500,000
Compensated absences payable 8,332 8,332
Net pension liability-
proportionate share
25,047 25,047
i- Total Liabilities 90,603 3,437 - 1,533,379 1,627,419
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FUND BALANCE
Investment in non-current
governmental assets 10,297,948 10,297,948
i Nonspendable 102,862 102,862
Restricted:
Debt service 3,337 3,337
Capital,equipment 1,432,754 1,432,754
Capital,building 32,888 32'888
Unspent bond proceeds 75,985 75,985
Assigned:Unappropriated 328,566 328,566
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Unassigned 480,407 480,407
Total Fund Balance 2,380,814 75,985 10,297,948 - 12,754,747
Total Liabilities and Fund Balance $ 2,471,417 $ 79,422 $ 10,297,948 $ 1,533,379 $ 14,382,166
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See Notes to Financial Statements -3
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SOUTHOLD FIRE DISTRICT
Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds
For the Year Ended December 31,2019
General Fund Total
Capital Capital Governmental
Operating Reserves Total Projects Funds
REVENUES
Real property taxes $ 1,980,754 $ $ 1,980,754 $ $ 1,980,754
Interest and earnings 18,055 21,783 39,838 39,838
Rentals 22,771 22,771 22,771
Refund of prior year expenditures 2,379 2,379 2,379
Miscellaneous 225 225 225
(�I Total Revenues 2,024,184 21,783 2,045,967 2,045,967
EXPENDITURES
Personal services 293,689 293,689 293,689
f Equipment and capital outlay 104,340 104,340 271,818 376,158
Fire protection 644,906 644,906 644,906
State retirement system 28,841 28,841 28,841
Service award program 360,983 360,983 360,983
f Social security 22,186 22,186 22,186
Workers'compensation 67,546 67,546 67,546
Medical and accident insurance 38,078 38,078 38,078
Debt service-principal 100,000 100,000 100,000
Debt service-interest 34,366 34,366 34,366
Total Expenditures 1,694,935 - 1,694,935 271,818 1,966,753
l' Excess(Deficiency)of Revenues Over Expenditures 329,249 21,783 351,032 (271,818) 79,214
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OTHER FINANCING SOURCES(USES)
Operating transfers in 237,000 237,000 237,000
Operating transfers out (237,000) (237,000) (237,000)
Total Other Financing Sources(Uses) (237,000) 237,000 -
Net Change in Fund Balance 92,249 258,783 351,032 (271,818) 79,214
-- Fund Balance-Beginning of Year 822,923 1,206,859 2,029,782 347,803 2,377,585
Fund Balance-End of Year $ 915,172 $ 1,465,642 $ 2,380,814 $ 75,985 $ 2,456,799
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See Notes to Financial Statements
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SOUTHOLD FIRE DISTRICT
Statement of Fiduciary Net Position-Fiduciary Fund
December 31,2019
Agency
- ASSETS
Service award program assets $ 4,217,396
Total Assets $ 4,217,396
r— LIABILITIES
1 Service awards $ 4,217,396
Total Liabilities $ 4,217,396
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See Notes to Financial Statements
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
1 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Southold Fire District(District) as of and for the year ended December 31,
2019,have been prepared in accordance with the financial reporting provisions of the New York State Office
{ I of the State Comptroller (Regulatory Basis), which is a comprehensive basis of accounting other than
accounting principles generally accepted in the United States of America (GAAP) for governmental units.
j- The Governmental Accounting Standards Board (GASB) is the standard setting body for establishing GAAP
for governmental units. The financial statements of the District have been prepared using only the current
financial resources measurement focus and the modified accrual basis of accounting. This method differs
from GAAP,which requires the preparation of additional financial statements using the economic resources
measurement focus and the accrual basis of accounting. GAAP basis financial statements require the
capitalization and depreciation of property and equipment and the recording of long-term liabilities.Under
-- the regulatory basis of accounting, property and equipment are recorded as an expenditure when
purchased,the proceeds of long-term debt are reported as other financing sources and the payment of long-
term debt and other long-term liabilities are recognized to the extent that the liabilities mature during the
year. In addition,GAAP requires the financial statements to be prepared in accordance with GASB Statement
No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local
—f Governments. GASB 34 financial statements require the presentation of government-wide financial
statements and management's discussion and analysis. The accounting practices used to prepare these
�i financial statements do not require compliance with GASB 34.
The significant accounting policies of the District are described below:
i_ A. Financial Reporting Entity
The District is a district corporation and political subdivision of the state of New York,distinct from the
municipalities in which it is located. In general, the District is governed by an elected board of
commissioners (Board) and is required to have a treasurer and a secretary. The District has the legal
- authority to levy taxes on real property and to borrow in its own name. The District is governed by
General Municipal Law and other laws of the state of New York and its subdivisions. The scope of
activities included in the accompanying financial statements is the transactions which comprise the
District's operations.
The primary function of the District is to provide fire-protection, rescue and emergency services to the
- , community. Services such as firefighting, fire prevention and public education support the primary
function.
The financial reporting entity includes all funds, functions and organizations over which the District's
Board exercises oversight responsibility. Oversight responsibility is determined on the basis of financial
interdependency, selection of governing authority, designation of management, ability to significantly
influence operations and accountability for fiscal matters.
B. Basis of Presentation
i r Fund Financial Statements
The District uses funds to report on its financial position and the results of its operations. Fund
F, accounting is designed to demonstrate legal compliance and to assist management by segregating
I transactions related to certain government functions or activities. A fund is a separate accounting entity
with a self-balancing set of accounts.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
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(Continued)
The District records its transactions in the fund types described below:
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Governmental Funds
Governmental funds are those through which most governmental functions are financed. The
acquisition, use and balances of expendable financial resources and the related liabilities are
accounted for through governmental funds. The measurement focus of the governmental funds is
4 based upon determination of financial position and changes in financial position. The following are
the District's governmental fund types:
i General Fund - the general fund is the principal operating fund of the District. It is used to
account for all financial resources except those required to be accounted for in another fund.
Capital Projects Fund - is primarily used to account for the financial resources used for the
1- acquisition,construction,renovation or major repair of capital facilities and other capital assets,
such as equipment.
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Fiduciary Funds
�! Fiduciary funds are used to account for assets held by the District in a trustee or custodial capacity.
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Agency Fund- the agency fund is used to account for money (and/or property) received and
j held in the capacity of trustee,custodian,or agent.
Account Groups
Account groups are used to establish accounting control and accountability for the District's capital
assets and general long-term obligations. The two account groups are not "funds". They are
accounting entities, not fiscal entities and are concerned only with the measurement of financial
position,and not with the results of operations. The District utilizes the following account groups:
- Non-Current Governmental Assets Account Group - the non-current governmental assets
I, account group is used to account for land,buildings,improvements and equipment owned by the
District.
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Non-Current Governmental Liabilities Account Group - the non-current governmental
- liabilities account group is used to account for all long-term debt and other obligations of the
District.
I� C. Measurement Focus and Basis of Accounting
` The governmental fund statements are reported using the current financial resources measurement
- focus and the modified accrual basis of accounting. Revenues are recognized when measurable and
available. The District considers all revenues reported in the governmental funds to be available if the
revenues are collected within 60 days after the end of the fiscal year. Expenditures are recorded when
—� the related fund liability is incurred, except for principal and interest on general long-term debt, claims
and judgments, pension costs and compensated absences,which are recognized as expenditures to the
extent they have matured.Capital asset acquisitions are reported as expenditures in governmental funds.
�! Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing
sources.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
D. Real Property Taxes
Real property taxes are levied annually by the District no later than November 1St and become a lien on
December 1St. The District's tax levy is collected by the Town of Southold and then remitted to the District
L) from January to June. The County of Suffolk is responsible for all uncollected taxes.
F( E. Interfund Transactions
L The operations of the District include transactions between funds.These transactions may be temporary
(7 in nature, such as with interfund borrowings. The District typically loans resources between funds for
Uthe purpose of providing cash flow.These interfund receivables and payables are expected to be repaid
within one year. Permanent transfers of funds include transfers to provide financing for the acquisition,
construction or renovation of major capital facilities or equipment.
'—' A detailed disclosure by individual fund for interfund receivables, payables, transfers in and transfers
out is provided subsequently in these Notes to Financial Statements.
F. Use of Estimates
The preparation of financial statements in conformity with a comprehensive basis of accounting other
than accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amount of assets,liabilities, and disclosure of
4` t contingencies at the date of the financial statements and the reported revenues and expenditures during
the reporting period. Accordingly, actual results could differ from those estimates. Estimates and
assumptions are made in a variety of areas, including actuarial assumptions and methods underlying
pension reporting.
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G. Cash
Cash consists of cash on hand, demand deposits and short-term investments with original maturities of
three months or less from date of acquisition.
Certain cash balances are restricted by various legal and contractual obligations,such as legal reserves.
H. Prepaid Items
Prepaid items represent payments made by the District for which benefits extend beyond year end.
These payments to vendors reflect costs applicable to future accounting periods and are recorded as
assets on the Balance Sheet using the consumption method. Under the consumption method, a current
asset for the prepaid item is recorded at the time of receipt and/or purchase and an expenditure is
_ reported in the year the goods or services are consumed.
A portion of fund balance has been classified as nonspendable to indicate that prepaids do not constitute
available spendable resources.
I. Capital Assets
Capital assets are reported in the non-current governmental assets account group at original cost,when
{ the information is available, or estimated historical cost based on professional third-party information.
Donated assets are reported at acquisition value at the date of donation.The capital threshold,the dollar
value above which asset acquisitions are added to the capital assets accounts,is$1,000 for all assets.
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SOUTHOLD FIRE DISTRICT
-- Notes to Financial Statements
(Continued)
{ J. Employee Benefits-Compensated Absences
Compensated absences consist of unpaid accumulated sick leave.
Sick leave eligibility and accumulation is specified in District policy. Upon retirement, resignation or
death,employees may contractually receive a credit towards their health insurance obligation.
The liability for compensated absences has been calculated using the vesting and an accrual for that
liability is included in the non-current governmental liabilities account group. The compensated
- absences liability is calculated based on the pay rates in effect at year-end.
In the fund financial statements, a liability is reported only for payments due for unused compensated
absences for those employees that have obligated themselves to separate from service with the District
by December 31st.
K. Other Benefits
Eligible District employees participate in the New York State and Local Employees'Retirement System.
Eligible volunteer firefighters and ambulance volunteers participate in the District sponsored Length of
Service Award Program.
District employees may choose to participate in the District's elective deferral compensation plan
1_1 established under Internal Revenue Code Section 457.
L. Fund Balance
The governmental fund statements report fund balance classifications according to the relative strength
of spending constraints placed on the purpose for which resources can be used,as follows:
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Nonspendable - Consists of amounts that are inherently nonspendable in the current period either
because of their form or because they must be maintained intact.Nonspendable fund balance consists
of prepaids,which are recorded in the general fund.
Restricted-Consists of amounts that are subject to externally enforceable legal purpose restrictions
imposed by creditors, grantors, contributors, or laws and regulations of other governments; or
' -' through constitutional provisions or enabling legislation. The District has established the following
F-1 restricted fund balances:
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Debt Service
I� Unexpended balances of proceeds of borrowings for capital projects; interest and earnings from
�- investing proceeds of obligations, and premium and accrued interest are recorded in the debt
service fund and held until appropriated for debt payments.These restricted amount are accounted
�( for in the general fund.
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_I Capital Reserve
A Capital Reserve (General Municipal Law Section 6-g) is used to finance all or part of the costs of
construction, reconstruction, or acquisition of "specific" or "type" capital improvements or
equipment. The establishment of any capital reserve is subject to mandatory referendum (voter
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_- SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
approval). Expenditures from a "specific" reserve require a resolution by the Board of Fire
Commissioners. Expenditures from a "type" reserve require a resolution by the Board of Fire
Commissioners,subject to permissive referendum.These reserves are accounted for in the general
- fund.
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Unspent Bond Proceeds
Unspent bond proceeds are recorded as restricted fund balance because they are subject to
external constraints contained in the bond agreement. These restricted funds are accounted for in
the capital projects fund.
Assigned-Consists of amounts that are subject to a purpose constraint that represents an intended
use established by the District's Board of Commissioners. The purpose of the assignment must be
lir narrower than the purpose of the general fund, and in funds other than the general fund, assigned
fund balance represents the residual amount of fund balance. Assigned fund balance includes
encumbrances not classified as restricted at the end of the fiscal year.
Unassigned-represents the residual classification for the District's general fund and could report a
surplus or deficit. In funds other than the general fund,the unassigned classification should be used
only to report a deficit fund balance resulting from overspending of available resources.
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Fund Balance Classification
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,_J Any portion of fund balance may be applied or transferred for a specific purpose either by voter
approval if required by law or by formal action of the Board of Fire Commissioners if voter approval is
�^ not required. Amendments or modification to the applied or transferred fund balance must also be
approved by formal action of the Board of Fire Commissioners.
The Board of Fire Commissioners shall retain the authority to assign fund balance.
In circumstances where an expenditure is incurred for a purpose for which amounts are available in
--, multiple fund balance classifications (e.g., expenditures related to reserves) the expenditure is to be
j spent first from the restricted fund balance to the extent that an approved permissive referendum is in
place or the reserve has been appropriated by the Board of Fire Commissioners, and then from the
assigned fund balance to the extent that there is an appropriation and then from the unassigned fund
balance.
n 2. STEWARDSHIP.COMPLIANCE AND ACCOUNTABILITY
'! A. Budgets
P The District administration prepares a proposed budget for approval by the Board of Fire Commissioners
for the general fund,the only fund with a legally adopted budget. Budgets are adopted annually on the
modified accrual basis of accounting.
_ Appropriations are established by the adoption of the budget,are recorded at the program line item level,
and constitute a limitation on expenditures (and encumbrances) that may be incurred.Appropriations
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authorized for the year are increased by the amount of encumbrances carried forward from the prior
year.Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbrances
will lapse if not expended in the subsequent year. Appropriations authorized for the current year can be
funded by the planned use of specific reserves, and can be increased by budget amendments approved
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
by the Board of Fire Commissioners as a result of selected new revenue sources not included in the
original budget (when permitted by law) and appropriation of fund balances. These supplemental
appropriations may occur subject to legal restrictions,if the Board of Fire Commissioners approves them
because of a need that exists which was not determined at the time the budget was adopted. A summary
of the general fund budget is as follows:
Budget approved by the Board of Fire Commissioners $ 2,007,158
Encumbrances from prior year 23,295
�- Use of prior year's surplus:
Transfer to equipment reserve 150,000
4 Purchase of console equipment 100,000
-r Final Budget $ 2,280,453
—" B. Encumbrances
Encumbrance accounting is used for budget control and monitoring purposes and is reported as a part
of the governmental funds. Under this method, purchase orders, contracts and other commitments for
the expenditure of monies are recorded to reserve applicable appropriations. Outstanding
encumbrances as of year-end are presented as part of assigned fund balance, unless classified as
restricted, and do not represent expenditures or liabilities. These commitments will be honored in the
subsequent period. Related expenditures are recognized at that time, as the liability is incurred or the
commitment is paid.
3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS
The District's investment policies are governed by state statutes and District policy. Resources must be
deposited in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or trust companies
" located within the State.Permissible investments include obligations of the U.S.Treasury and U.S.Agencies,
1,2 repurchase agreements and obligations of New York State or its localities.Collateral is required for demand
and time deposits and certificates of deposit not covered by FDIC insurance.Obligations that maybe pledged
as collateral are obligations of the United States and its Agencies and obligations of New York State and its
y municipalities.Investments are stated at fair value.
Custodial credit risk is the risk that in the event of a bank failure, the District may be unable to recover
deposits or collateral securities that are in possession of an outside agency. GASB directs that deposits be
disclosed as exposed to custodial credit risk if they are not covered by depository insurance and the deposits
FI are as follows:
A. Uncollateralized,
r B. Collateralized by securities held by the pledging financial institution,or
C. Collateralized by securities held by the pledging financial institution's trust department or agent but
not in the District's name.
The District's aggregate bank balances were covered by FDIC insurance or fully collateralized by letters of
credit on the District's behalf at year end.
The District did not have any investments at year end or during the year.Consequently,the District was not
exposed to any material interest rate risk.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
r (Continued)
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Investment pool:
The District participates in the Cooperative Liquid Assets Securities System — New York (NYCLASS), a
— multi-municipal cooperative investment pool agreement pursuant to New York State General Municipal
Law Article 3-A and 5-G, whereby it holds a portion of the investments in cooperation with other
participants.The investments are highly liquid and are considered to be cash equivalents.All NYCLASS
investment and collateral policies are in accordance with General Municipal Law,Sections 10 and 11.
Total investments of the cooperative at December 31, 2019 are $3,164,837,874, which consisted of
$464,226,404 in repurchase agreements collateralized by a U.S. Government Agency Security,
$352,894,682 in U.S. Treasury Securities, $2,111,154,808 in Treasury Bills, and $236,561,980 in
collateralized bank deposits,with various interest rates and due dates.
The following amounts are included as cash:
Carrying
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Fund Amount
General fund $ 402,153
General fund-Capital reserves 853,160
$ 1,255,313
The above amounts represent the cost of the investment pool shares,which approximates market value.
The Lead Participant of NYCLASS is the Village of Potsdam.Additional information concerning NYCLASS,
including the annual report,can be found on its website at www.newyorkclass.org.
4. CAPITAL ASSETS
jCapital assets balances and activity for the year ended December 31, 2019,were as follows:
Balance Balance
December 31, December 31,
`J 2018 Additions Deletions 2019
Land $ 670,752 $ 44,934 $ $ 715,686
— Construction work in progress 1,373,797 (1,373,797) -
Buildings and improvements 3,511,540 1,781,726 (28,778) 5,264,488
Equipment 4,277,485 126,918 (86,629) 4,317,774
$ 9,833,574 $ 1,953,578 $ (1,489,204) $ 10,297,948
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
S. CAPITAL RESERVES
Activity for the capital reserves during the year under audit is as follows:
Building Equipment
Reserve Reserve Total
r Reserve Balance-Beginning of Year $ 32,217 $ 1,174,642 $ 1,206,859
_ Additions to Reserve:
Interest 671 21,112 21,783
Budgeted transfer to reserve 87,000 87,000
Transfer of prior year's surplus 150,000 150,000
Reserve Balance-End of Year $ 32,888 $ 1,432,754 $ 1,465,642
6. INTERFUND TRANSACTIONS
,J
Interfund balances at December 31,2019,are as follows:
Interfund
Receivables Payable
General fund $ 3,437 $
Capital projects fund 3,437
j $ 3,437 $ 3,437
The balance payable from the capital projects fund to the general fund represents $100 transferred to
initially open a checldng account plus $3,337 of interest earned on bond proceeds that is now being
accounted for in the debt service reserve.
7. LONG-TERM LIABILITIES
Long-term liability balances and activity for the year are summarized below:
—r
Balance Balance Amounts
December 31, December 31, Due Within
2018 Additions Reductions 2019 One Year
J� Long-term debt:
r-�
Bonds payable $ 1,600,000 $ $ 100,000 $ 1,500,000 $ 100,000
Other long-term liabilities
r-.
Compensated absences 8,332 8,332 -
$ 1,600,000 $ 8,332 $ 100,000 $ 1,508,332 $ 100,000
The general fund has typically been used to liquidate long-term liabilities. Additions and reductions to
compensated absences are shown net since it is impractical to separately determine these amounts. The
maturity of compensated absences is not determinable.
- 13-
- SOUTHOLD FIRE DISTRICT
- Notes to Financial Statements
ti (Continued)
A. Bonds Payable
Bonds payable are comprised of the following:
Outstanding at
t Issue Final Interest December 31,
Description Date Maturity Rate 2019
` Serial bond-improvements
—" to Fire District facilities 12/1/2017 6/1/2032 2.236% $ 1,500,000
The following is a summary of debt service requirements for bonds payable:
Year Ending December 31, Principal Interest Total
I 2020 $ 100,000 $ 32,422 $ 132,422
2021 100,000 30,186 130,186
-- 2022 100,000 27,950 127,950
2023 100,000 25,714 125,714
-� 2024 100,000 23,478 123,478
2025-2029 625,000 76,862 701,862,
2030-2032 375,000 12,578 387,578
Total $ 1,500,000 $ 229,190 $ 1,729,190
it
Interest on long-term debt for the year was$34,366.
�j 8. PENSION PLAN—NEW YORK STATE
A. General Information
i
Plan Description
The District participates in the New York State and Local Employees' Retirement System(ERS). This is
a cost-sharing,multiple-employer defined benefit retirement system.The system provides retirement,
disability,withdrawal and death benefits to plan members and beneficiaries related to years of service
and final average salary.
Provisions and Administration
Obligation of employers and employees to contribute and benefits to employees are governed by the
New York State Retirement and Social Security Law (NYSRSSL).The net position of ERS is held in the
1 New York State Common Retirement Fund(the Fund),which was established to hold all net assets and
record changes in plan net position allocated to the ERS.As set forth in the NYSRSSL,the Comptroller
of the State of New York serves as the trustee of the Fund and is the administrative head of ERS.Once a
public employer elects to participate in ERS, the election is irrevocable. The New York State
Constitution provides that pension membership is a contractual relationship and plan benefits cannot
be diminished or impaired. Benefits can be changed for future members only by enactment of a State
statute.The District also participates in the Public Employees'Group Life Insurance Plan(GLIP),which
provides death benefits in the form of life insurance.The ERS is included in the State's financial report
as a pension trust fund. That report, including information with regard to benefits provided may be
iI
found at www.osc.state.ny.us/retire/publications/index or maybe obtained by writing to: New
York State and Local Employees' Retirement System, 110 State Street,Albany,NY 12244.
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t�
SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
} (Continued)
Funding Policies
Plan members who joined the system before July 27, 1976, are not required to make contributions.
Those joining on or after July 27, 1976,and before January 1,2010,with less than ten years of credited
services are required to contribute 3% of their salary. Those joining on or after January 1, 2010 and
before April 1, 2012, are required to contribute 3% of their salary throughout active membership.
Those joining on or after April 1, 2012, are required to contribute between 3% and 6% dependent on
their salary throughout active membership. Employers are required to contribute at an actuarially
determined rate based on covered salaries paid. For the ERS, the Comptroller annually certifies the
actuarially determined rates expressly used in computing the employers' contributions for the ERS'
fiscal year ended March 315, and employer contributions are either paid by December 15th less a 1%
discount or by February 15t.The District paid 100% of the required contributions as billed by the ERS
for the current year.The District's average contribution rate was 15.05%of covered payroll for the ERS'
fiscal year ended March 31,2020.
The Comptroller annually certifies the actuarially determined rates expressly used in computing the
�i employers' contributions based on salaries paid during the ERS' fiscal year ending March 31. The
resulting contributions paid in the current year and two preceding years were equal to 100 percent of
the contributions required,and were as follows:
2019 2018 2017
District contributions paid $ 28,841 $ 28,140 $ 28,222
B. Pension Liabilities
`Li At December 31, 2019,the District reported the following liability for its proportionate share of the net
pension liability for ERS in the non-current governmental liabilities account group. The net pension
p liability was measured as of March 31,2019.The total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The Districts proportion of the net
pension liabilitywas based on a projection of the District's long-term share of contributions to the system
— relative to the projected contributions of all participating members, actuarially determined. This
information was provided by the ERS in reports provided to the District.
--- Measurement date March 31,2019
District's proportionate share of
the net pension liability $ 25,047
District's portion of the Plan's total
net pension liability 0.0003535%
Change in proportion since the
r prior measurement date (0.0000783)
Y �
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-J SOUTHOLD FIRE DISTRICT
- Notes to Financial Statements
! (Continued)
Actuarial Assumptions
The total pension liability as of the measurement date was determined by using an actuarial valuation as
noted in the table below,with update procedures used to roll forward the total pension liability to the
measurement date.The actuarial valuations used the following actuarial assumptions:
Measurement date March 31,2019
Actuarial valuation date April 1,2018
Inflation 2.5%
Salary increases 4.2%
Investment rate of return(net of investment
expense,including inflation) 7.0%
Cost of living adjustments 1.3%
Annuitant mortality rates are based on system experience with adjustments for mortality improvements
based on the Society of Actuaries'Scale MP-2014. The actuarial assumptions were based on the results
of an actuarial experience study for the period April 1,2010-March 31, 2015.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return(expected return,net
of investment expenses and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates
^I of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of the arithmetic real rates of return for each major asset class
are summarized as follows:
Long-term
r-- Target Expected Rate
Allocation of Return
Measurement date March 31,2019
Asset type
Domestic equity 36.00 % 4.55 %
} International equity 14.00 % 6.35 %
Real estate 10.00 % 5.55 %
Private equities 10.00 % 7.50 %
Alternative investments 8.00 % 3.75-5.68%
Bonds and mortgages 17.00 % 1.31 %
Cash 1.00 % (0.25)%
Inflation indexed bonds 4.00 % 1.25 %
1J100.00 %
Real rates of return are net of long-term inflation assumption of 2.5%.
IJ;
7� - 16-
SOUTHOLD FIRE DISTRICT
_ dotes to Financial Statements
(Continued)
Discount Rate
The discount rate used to calculate the total pension liability was 7.0%.The projection of cash flows used
to determine the discount rate assumes that contributions from plan members will be made at the
current contribution rates and that contributions from employers will be made at statutorily required
rates, actuarially determined. Based upon the assumptions, the System's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore,the long-term expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.
t ' Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate Assumption
r The following presents the District's proportionate share of the net pension liability calculated using the
discount rate of 7.0% for ERS, as well as what the District's proportionate share of the net pension
—` asset/(liability) would be if it were calculated using a discount rate that is 1 percentage point lower
(6.0%) or 1 percentage point higher(8.0%)than the current rate:
Current
1%Decrease Assumption 1%Increase
(6.00)% (7.00)% (8.00)%
District's proportionate share of
-- the net pension asset(liability) $ (109,509) $ (25,047) $ 45,907
Pension Plan Fiduciary Net Position
j The components of the current-year net pension liability of the employers, rounded to the nearest
thousand,as of the measurement date were as follows:
(Dollars in Thousands)
Measurement date March 31,2019
i Employers'total pension liability $ (189,803,429)
Plan fiduciary net position 182,718,124
Employers'net pension liability $ (7,085,305)
Ratio of plan fiduciary net position to the
employers'total pension liability 96.27%
r
Prepayment to the Pension Plan
Employer contributions are paid annually based on the System's fiscal year,which ends on March 31St.
Annual payments are due February 1St.An employer can elect to prepay the amount due by December
15th to receive a 1% discount. The District paid the annual invoice in December, which resulted in a
prepayment of$7,273 for the period January 1, 2020 through March 31, 2020. Employee contributions
are remitted monthly.
l - 17-
SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
�J
(Continued)
9. LENGTH OF SERVICE AWARD PROGRAM(LOSAP)
The District established a defined benefit LOSAP for the active volunteer firefighters of the Southold Fire
Department.The program took effect on January 1,1993. The program was established pursuant to Article
11-A of the General Municipal Law. The program provides municipally-funded pension-like benefits to
facilitate the recruitment and retention of active volunteer firefighters. The District is the sponsor of the
program. The information contained in this note is based on information for the Length of Service Award
Program for the plan year ending on December 31,2019.
Program Description
tj
Participation, Vesting and Service Credit
Active volunteer firefighters who have reached the age of 18 and who have completed 1 year of
- firefighting service are eligible to participate in the program.Participants acquire a non-forfeitable right
to a service award after being credited with 5 years of firefighting services or upon attaining the
program's entitlement age.The program's entitlement age is age 62 and completion of 1 year of service.
In general,an active firefighter is credited with a year of firefighting service for each calendar year after
the establishment of the program which he or she accumulates fifty points. Points are granted for the
performance of certain activities in accordance with a system established by the sponsor on the basis of
a statutory list of activities and point values. A participant may also receive credit for 5 years of
firefighting service rendered prior to the establishment of the program. A participant becomes 100%
vested upon earning 5 years of service credit, attaining'the entitlement age while an active member,
becoming totally or permanently disabled, or upon death. Benefits are forfeited when a participant's
membership is terminated and the participant has less than 5 years of credited service.
Benefits
A participant's benefit under the program is life annuity with 10 years certain equal to$20 multiplied by
the person's total number of years of firefighting service.The number of years of firefighting service used
to compute the benefit cannot exceed 40,and except in the case of disability or death,benefits are payable
when a participant reaches entitlement age. The program provides statutorily mandated death and
disability benefits.
- , Fiduciary Investment and Control
Service credit is determined by the governing board of the sponsor,based on information certified to the
governing board by each fire company having members who participate in the program. Each fire
company must maintain all required records on forms prescribed by the governing board.
The governing board of the sponsor has retained and designated Hometown/Firefighters Services to
assist in the administration of the program. The designated program administrators primary
responsibility is to administer the plan for the exclusive benefit of the participants and their beneficiaries.
Such duties include,but are not limited to,determining eligibility of firefighters to participate in the plan,
compute participant entitlement, authorize disbursements to participants, compute necessary
_ contribution amounts, maintain all necessary records and consult with the sponsor and the trustee on
long-term investment plans. Disbursements of program assets for the payment of benefits or
iadministrative expenses must be reviewed by the trustee,the Board of Fire Commissioners, and signed
by at least two board members prior to being disbursed by the administrator.
j ` - 18-
II
SOUTHOLD FIRE DISTRICT
_ Notes to Financial Statements
(Continued)
i
Program assets are required to be held in trust by LOSAP legislation, for the exclusive purpose of
providing benefits to participants and their beneficiaries or for the purpose of defraying the reasonable
expenses of the operation and administration of the program.The trust agreement is dated February 8,
2005,and the trustee is the Board of Fire Commissioners.
Authority to invest program assets is vested in the administrator,with the Board of Fire Commissioners'
prior written approval.Subject to restrictions in the program document,program assets are invested in
accordance with a statutory "prudent person" rule. The program document calls for all investment
decisions to be chosen and approved by the trustee,prior to being invested by the administrator.
The sponsor is required to retain an actuary to determine the amount of the sponsor's contributions to
the plan.The actuary retained by the sponsor for this purpose is BPAS Actuarial&Pension Services,LLC.
Portions of the following information are derived from a report prepared by the actuary dated March
2020 for the plan year ended December 31, 2019.
Program Financial Condition
_ Assets and Liabilities
Actuarial Present Value of Benefits at December 31,2019 $ 5,254,677
Less:
Assets Available for Benefits
%of total
Cash 2.98% $ 125,602
Trust 26.60% 1,121,924
Annuities 48.79% 2,057,619
Insurance contracts 21.63% 912,251
Total Net Assets Available for Benefits 4,217,396
Total Unfunded Benefits 1,037,281
Less:Unfunded Liability for Prior Service (1,037,281)
Unfunded Normal Benefits $ -
Prior Service Costs
Prior service costs are being amortized over a range of 7 to 10 years at a discount rate of 5.00%.
l !
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
Receipts and Disbursements
Plan Net Assets,Beginning of Year $ 4,070,301
Changes during the year
+Plan contributions $ 302,000
+Insurance premiums paid 53,183
�— +Investment income earned 114,667
+Insurance receipts 89,218
�4 +/-Change in value of insurance contracts (25,339)
-Insurance payments (45,367)
-Plan benefit withdrawals (335,467)
-Administrative fees (5,800)
147,095
Plan Net Assets,End of Year $ 4,217,396
1
Contributions
Maximum amount of sponsor's contribution recommended by actuary: $ 387,375
Minimum amount of sponsor's actual contribution: 359,442
Amount of sponsor's actual contribution: 302,000
Normal Costs
The actuarial valuation methodology used by the actuary to determine the sponsor's contribution is the
unit credit cost method. The assumptions used by the actuary to determine the sponsor's contribution
and the actuarial present value of benefits are:
L1
Assumed rate of return on investment 5.00%
Mortality tables used for
- Withdrawal None
Disability None
Retirement RP-2000 Combined-Unisex
Death(actives) None
Death(inactives) None
I Y� Other None
10. DEFERRED COMPENSATION PLAN
The District has established a deferred compensation plan in accordance with Internal Revenue Code§457
for all employees. The District makes no contributions in this Plan. The amount deferred by eligible
employees for the year ended December 31,2019 totaled$4,033.
a �
-20-
I �I
SOUTHOLD FIRE DISTRICT
Notes to Financial Statements
(Continued)
i 11. COMMITMENTS AND CONTINGENCIES
A. Encumbrances
All encumbrances are classified as either restricted or assigned fund balance. At December 31,2019,the
District encumbered the following amounts:
Assigned:Fund Balance
General Fund
_ Equipment and capital outlay $ 307,066
Fire protection 21,500
$ 328,566
B. Risk Management
r1 The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; injuries to employees; errors and omissions; and natural disasters, etc. These risks are covered
by commercial insurance purchased from independent third parties. Settled claims from these risks have
not exceeded commercial insurance coverage for the past three years.
C. Litigation
The District is not aware of any material,pending or threatened litigation claims against the District.The
District is also unaware of any unasserted claims or assessments that would require financial statement
disclosure.
12. SPENDING LIMITATION
The District did not exceed the statutory spending limitation imposed by New York State Law for the year
ended December 31, 2019,and the budget for the year ending December 31,2020.
13. SUBSEQUENT EVENT
� i
The District has evaluated subsequent events through the date of the auditor's report,which is the date the
financial statements were available to be issued. No significant events were identified that would require
adjustment of or disclosure in the financial statements,except for the following:
A. Significant Contracts:
On January 28,2020,the Board of Fire Commissioners accepted a bid to purchase a District vehicle
for$46,833.
On February 25, 2020,the Board of Fire Commissioners approved a quote for a curbing project for
a cost totaling$17,240.
UOn March 24,2020,the Board of Fire Commissioners approved a driveway replacement project for
costs totaling$30,350.
i
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I } -21-
SOUTHOLD FIRE DISTRICT
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual-General Fund-Operating
For the Year Ended December 31,2019
Board- Final Budget
Approved Final Variance with
Budget Budget Actual Actual
REVENUES
Real property taxes $ 1,980,725 $ 1,980,725 $ 1,980,754 $ 29
Interest and earnings 18,055 18,055
Rentals 26,433 26,433 22,771 (3,662)
Refund of prior year expenditures 2,379 2,379
Miscellaneous 225 225
Total Revenues 2,007,158 2,007,158 2,024,184 $ 17,026
APPROPRIATED FUND BALANCE
Prior year's encumbrances 23,295
Prior year's surplus 250,000
Y - 273,295
Total Revenues and
Appropriated Fund Balance $ 2,007,158 $ 2,280,453
Final Budget
Variance with
Year End Actual and
Encumbrances Encumbrances
EXPENDITURES
Personal services $ 315,000 $ 293,689 293,689 $ $ -
Equipment and capital outlay 100,000 411,487 104,340 307,066 81
Fire protection 797,115 674,211 644,906 21,500 7,805
State retirement system 29,000 29,091 28,841 250
Service award program 363,000 361,932 360,983 949
Social security 22,385 22,385 22,186 199
Workers'compensation 70,000 70,000 67,546 2,454
Medical and accident insurance 46,000 46,000 38,078 7,922
Debt service-principal 100,000 100,000 100,000
Debt service-interest 34,658 34,658 34,366 292
Total Expenditures 1,877,158 2,043,453 1,694,935 328,566 19,952
OTHER FINANCING USES
Operating transfers out 130,000 237,000 237,000
Total Expenditures and
Other Financing Uses $ 2,007,158 $ 2,280,453 1,931,935 $ 328,566 $ 19,952
� Net Change in Fund Balance
92,249
Fund Balance-Beginning of Year 822,923
Fund Balance-End of Year $ 915,172
i_l Note to Other Supplementary Information
-� Budget Basis of Accountine
Budgets are adopted on the modified accrual basis of accounting.
See Paragraph on Other Supplementary Information Included in Auditor's Report -22-
VINCENT D.CULLEN,CPA
�lJf lL- (1 950-2013)
- , CULLEN j&,"DA [OWS K1, LLP
JAMES E DANOWSKI,CPA
CERTIFIED'PVBtIdACCC+°UNTANTS PETER F.RODRIGUEZ,CPA
JILL S SANDERS,CPA
` J DONALD J.HOFFMANN,CPA
CHRISTOPHER V.REINO,CPA
ALAN YU,CPA
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND-OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
r ! To the Board of Fire Commissioners
Southold Fire District
- Southold,New York
We have audited,in accordance with auditing standards generally accepted in the United States of America and
I the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States,the financial statements of the Southold Fire District (District), as of
and for the year ended December 31,2019,and the related notes to financial statements,as listed in the table of
contents,which collectively comprise the District's basic financial statements and have issued our report thereon
dated June 29, 2020.As described more fully in Note 1,the Southold Fire District has prepared these financial
statements in accordance with financial reporting provisions of the New York State Office of the State
Comptroller,which is a comprehensive basis of accounting other than accounting principles generally accepted
in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Southold Fire District's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not
for the purpose of expressing an opinion on the effectiveness of the Southold Fire District's internal control.
Accordingly,we do not express an opinion on the effectiveness of the Southold Fire District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis.A material weakness is a deficiency,or a combination of deficiencies,in internal
control, such that there is a reasonable possibility that a material misstatement of the District's financial
—f statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet
important enough to merit attention by those charged with governance.
�t Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies.Given these limitations,during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses.However,material weaknesses may exist that have not been
_. identified.
I '
1650 ROUTE 112,PORT JEFFERSON STATION,NEW YORK 11776-3060 -23 -
PHONE:
23 -
PHONE:631-473-3400•FAX:631-473-4863 9 WWW.CDLLP.NET
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Southold Fire District's financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect
on the determination of financial statement amounts. However,providing an opinion on compliance with those
provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results of
our tests disclosed no instances of noncompliance or other matters that are required to be reported under
C_J Government Auditing Standards.
We noted certain matters that we have reported to the Board of Fire Commissioners and management of the
Southold Fire District in a separate letter dated June 29,2020.
--I Purpose of this Report
J
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing,and not to provide an opinion on the effectiveness of the District's internal control or
on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District's internal control and compliance.Accordingly,this communication is not
suitable for any other purpose.
June 29,2020
it
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i j - 24-