HomeMy WebLinkAbout2016 FI Waste Management District Sep 151707:199 1:::IVVMD 6317887451 p.2
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
State of New York
FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION WITH
INDEPENDENT AUDITOR'S REPORT
December 31,2016
Sep 15 1707:19a FIVV1/ID 6317887451 p3
FISHERS ISLAND WAST-E MANAGEMENT DISTRICT
TABLE OF CONTENTS
Ua I we
Independent Auditor's Report I
Management's Discussion and Analysis(MD&A) 3
Basic Financial Statements:
Statement of Net Position 9
Statement of Activities 10
Balance Sheet-Governmental Funds 11
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 12
Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds :1.3
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance to the Statement of Activities 14
Notes to the Financial Statements is
Required Supplementary Information other than
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual-General Fund 22
Seep 15 1707:20a F=IVVIMD 631 7887451 pA
VINCI,N°r I).CULM,r:N,CPA
CERTIFIED PUBLIC ACCOUNTANTS r-rr„zr;rtODImMEZ,CPA
I ELY,S,SAN LTE 16,CPA
DONALD J. IDF'Fl�4ANN CPA
CHRISTOPHEY V,REINO GPA
AJL IN YU CPA
INDEPENDENT 1 ' T
To the Board of Commissioners
-.w... Fishers Island Waste Management District
Fishers Island,New York
We have audited the accompanying financial statements of the governmental activities and each major fund of the
Fishers Island Waste Management District (District), a component unit of the Town of Southold, New York, as of and
for the year ended December 31, 2016,. d the related notes to the financial statements,which collectively comprise
the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
ivinagement is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes 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. 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 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 entity's preparation and fair presentation of the Financial
statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of
expressing an opinion on the ef-ectiveness of the entity's internal control. Accordingly,we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
_ e believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
16SO ROLYPIT 11.2,F'CoR'r JE T=GSt SON"kT TION,NEW YORr:1.1776-3060
PHONE:631-473-3400 -FAX-631-473 063 w WW°VVWW".CD1, RNLT
Sep 151707:20a FIWMD 6317887451 P.5
Opinions
In Our opinion,the financial statements referred to previously present fairly, in all material respects, the respective
financial position of the governmental activities and each major fund of the Fishers Island Waste Management
District as of December 31, 2016, and the respective changes in financial position for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
Other Matters-Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and
analysis and budgetary comparison information on pages 3 through 8 and 22,be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementar)y information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
r L)---10
May 12,2017
- 2 ,
Sep 15170(,20a FIVVI\AD 6317887451 p.6
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
11u,! Fishers Island Wast(,� Managolnent District*s (Disvrkll) and an,',ilysis 0�r tjj(�
-11),e 1' 31, 2 016� i n
an overall rI,.,vjcw of the Distdct's fin;'Incial ,Ictivjties for the fiscol ye or ended Decen,
with the year ended Mcornber `il, 2015, �,vjjj (),n 1he current year. The intent Ofthis
diSCUNSiMl and analysis is ic� took at (Jie District's Financial wjjr)Jc, "I'lijs sjj(m1d tw reod in
conjunction unction with the financial statements, which immediaAelY lollow thissr�(Jjcfl).
1. F.)N.AN_CJA1,,,,_1_,LRAJ IJ QI—ErS
Key financial highlights for fiscal year 2016 are as follows:
• The District's total net position, as reflected in the government-wide financial statements, decreased
by $251,111, This was due to an excess of expenses over revenues using the economic resources
measurenic',nil"' focus and the accrual basis of accountriig. The District's total net position was
$3,082,573 at December 31, 2016.
• The District's general fund total fund balance, as reflected in the fund financial statements, decreased
by $107,225. This was due to an excess of experaflorres over revenues the cruxitt financial
resources measurement focus and the modified accrual basis of accountirig. Tfif, District's flf!neral
fund total fund balance was $478,787 at December 31, 2016.
2. QV1Lj3.V_I
This annual report consists of three parts - Management's Discussion and Analysis (MD&A) (this section),the
basic fiiiancial statements, and required supplementary infOrniation. The basic financial statements consist of
gDVernn1F,-.,,Ijt-wide financial statements, fund financial sutenivI)B, and notes to the fin,.Incial statements. A
graphic display of the relationship of these statements follows:
......... . ......................... .........
A. Government-Wide Financial Statements
The V -standing of the fiscal
fillancial, stateri'lents are organizeci to provide an undoi,
per fornipnce of the District racy iJ wilole III a niallner silylilar to a private sector business There are two
gover n III ent-wido finarlc'iod the St;iternent of Net Position and the Statement of Activities
an j(,)Ijgj-terrn view of the District's finances.
3
Sep 15 17 0 7:20a FIVVMD 631 78874 51 p.7
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
These statements utilize the accrual basis of accounting. 'Chis basis of accounting recognizes the financial
effects of events when they occur,without regard to the timing of cash flows related to the events.
The Statement of Net Position presents information on all of the District's assets and liabilities, with the
difference between the two reported as net position. Increases or decreases in net position may serve as
a useful indicator of whether the financial position of the District is improving or deteriorating,
c_.-ti
The Statement of Activities presents information showing the change in net position during the fiscal
year. All changes in net position are recorded at the time the underlying financial event occurs.
Therefore, revenues and expenses are reported in the state m(-.-,nt for some iterns that will result in cash
flow in future fiscal periods.
B. Fund Financial Statements
The fund financial statements provide more detailed information about the District's funds, not the District
as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The District may use fund accounting to ensure
compliance with finance-related legal requirements. The funds of the District are reported in the
governmental funds.
These statements utilize the modified accrual basis of accounting. This basis of accounting recognizes
revenues in the period that they become measurable and available. It recognizes expenditures in the
period in which the Distntl incurs the liability, except for certain exponditures relatcA to long-term
liabilities,which are recognizc!d as expenditures to the extent the rf.Iatod licibilities miatures each period.
Governniental funds are used to accc)unt for ussi.ntLflly the same functions rq,,)ort.ed as j,-;c)vcrmnen1,a1
acfivitles in the govern anent-wide financial stiAements. However, the governmen.tal I'Lind Financial
statements focus on shorter term inflows and outflows of spendable resources, as well as on balances of
spendable resources av,dlable at the end of the fiscal year for spending in future years. Consequently,the
governMentcaI t"(1111d stacr ments provide a deLoiled short-term view of the District's olierilduiis and the
services it provides.
Because the focus of governmental funds is narrower than that of government-wide financial statements,it
is useful to compare the information presented for governivental funds with similar information presented
for govermnental. activities in the government-wide financial stawinents. By doing so, you may bettel-
understand the longtermimpact of the District's near-term financing decisions. Both the governmental
funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in
Fund Balance provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The District maintains one individual governmental fund,the general fund.
3. AN-A.Wth(ALE
A. Net Position
The District's total net position decreased by$251,111 between fiscal year 2016 and 2015.A summary of
the District's Statements of Net Position is as follows:
4
Sep 15 170T21 a IFIVVMD 6317887451 p.8
1 iSHERS ISLAND WASTE IWiAi'vAUEIV ENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
" Increase Percentage
2016 2015 ('IJecrease�^ _ ^Change ,..._
Current and Other Assets $ 608,812 $ 726,043 $ (117,231) (5.6,1 )%
__�........._ 14.3..886
Ca�Itallssets,Net 2,6037362,747,672 (5.24)%
_......_...... _.._ -......
Cotal Assets .. 3,452,598 I,47:1 Y.�i 261,3.17) (7.S2)%
Current and other Liabilities ..... _.._... . 1.40,031.
Net Position
Net Investment in Capital Assets 2,603,786 2,747,672 (143,886) (5.24)%
Unrestricted 478,787 586,012 1,107,2251 (18.30)0/o
Total Net Position lg if,Ofii 4,°77'1._ S 3,333,(01, $ (251111.)y (7,53)%
Current and other assets decreased by $117,231, primarily as a result of a reduction in the principal
amount invested in certificates of deposit with maturities greater than three months.
Current and other liabilities decreased by $10,006 as a result of a decrease in payroll taxes payable an
unearned credits offset by an increase in accounts payable.
Capital assets, net and the net investment in capital assets in the amount of$2,603,786 relates to capital
assets at cost less depreciation. This number decreased over the prior year as a result of the recognition of
depreciation expense.
B. Changes in NetPosition
The results of this year's operations as reported in the Statement of Activities are as follows;
Increase Percentage
2016 2015Cl7ecrease) Chane
Revenues
Program Revenues
Charges for Services $ 63,460 $ 43,559 $ 19,901 45.69 %
General Revenues
_ Real Properly Taxes 562,729 55I3,653 4,076 0.73
Other 3 1,999 5.,724• 86.24 %
629,91_ _. _ - - ..
Revenues 2 604,211 25,701 4.25 %
Expenses
_..._ 881023 763,807 117,216
General government support _ . 15.35
(Decrease in Net Positron —$ =E51-41=1) _„$—X159,596) .r- _(91 515) 57,34 °/a
The District primarily relies on real property taxes to support its operations. The net increase in total
revenues in 2016 as compared to 2015 was $25,701 as shown above.
_ 5..
Sep 15 1707:21 a FIVVMD 631788 74 51 P 9
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
The total expenses in 2016 were $117,216 or 15.350/c) greater than 2015. In 2016, the District had
increased consultingb expenses of$4-9,262, health insurance expenses of'$8,533, hazardous waste removal
expenses of$18,201, and salaries of$39,688.
4I ANCR
AN, - A-LANAjY5 j0j,�_- 110 ]SVRICA'S I'
At December 31, 2016, the general fund, which is the only governmental fund, reported a fund balance of
$478,787, which is a decrease of$107,225 from the prior year. This decrease is due to expenditures in excess
of revenues for the fiscal year,and is the same as the change in unrestricted net position.
Increase
2016 X91.5
lea cr case
GeneralFund
Nonspendable:Prepaids $ 24,928 $ 18,OS7 $ 6,871
Assigned:Designated 300,552 387,846 (87,294)
Unassigned: Fund balance 153,307 180,109 .......
$ 470,787 $ S86,012
A. 2016 Budget
The District's general fund original budget for the year ended December 31, 2016 was 5614,871.
The budget was primarily funded by real property taxes.
B. Change in General Fund's Unassigned Fund Balance (Budget to Actual)
The general fund's unassigned fund balance is the component of total fund balance that is the residual of
prior years' excuss reventies civer exp ei,idtures, net of transfers to restricted fund alances arid
"Is's , to fund Lhe subsequent year's budget and amounts classified as
igninents, S�.,Ich as alnoun[,�s
chanpo in this balance dertionstrated through a comparison of the actual revenues and
exp(""Ilditures,for theyc;,,ir coinp;,irod tot-wriget f'ollows:
Opening,Unassigned Fund Balance $ 180,109
Revenues Over Budget 15,041
Expenditures Over Budget (122,266)
Change in Nonspendable Fund Balance (6,871)
Net Change in Assigned Fund Balance 87,294
Closing, Unassigned Fund Balance $ ---153,307
The $180,109 shown in the table is the portion of the District's December 31,2015 fund balance that was
unassigned.
-6-
Sep 151 707:21a F:IVVMD 6317887451 PAA
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISC€JSSI®N AND ANALYSIS
(Continued]
_m Rove � eos�Ilvc�:�;.
`rhe 2016 budget for revenues was $614,871.. Actual revenues received for the year were $629,912.
Actual revenues were more than estimated or budgeted revenues by $15,041. This difference increases
the unassigned portion of the general fund - Fund balance from December 31, 2015 to December 31,
20160
The 2016 budget for expenditures was $614,871. ,Actual expenditures for 2016 were $737,137. The final
budget was over expended by $122,266° This over expenditure was primarily the result of higher than
anticipated personnel costs and related benefits and consulting costs. This over expenditure decreases
the unassigned portion of the general fund - fund balance from December 31, 2015 to December 31.,
2016.
t_r.rr+l I?rrfl1� ce
The District prepaid various insurance policies at December 31., 2016. This resulting balance sheet asset
(prepaids) cannot be spent because it is not in a spendable form, meaning it will not be converted to cash.
Accordingly, an equal amount of fund balance is classified as nonspendable. The increase in
nonspendable fund balance decreases unassigned fund balance.
hadr,rrgL ,ig11,�t N
Mxttrull...l3lr °qys
Assigned fund balance includes amounts earmarked for specific purposes. The decrease in assigned fund
balance increase unassigned fund.balance.
igj!.passign C, I R1,t�nl ..L rtl rzn�_t
Based upon the summary changes shown in the above table, the District will begin the 2017 fiscal year
with an unassigned fiend balance of$153,307. This is a $26.802 decrease from,the prior year unassigned
fund balance.
6. 4A,f?[l�iLl�S'�l liITANDl [ING_..MulRIllli:lw
At December 31., 2016, the District had invested in a broad range of capital assets, as indicated its the table
belovn The net decrease in capital assets is due to depreciation of$143,886 for the year ended December 31,
2016. A summary of the District's capital. assets, net of depreciation at December 31, 2016 and 2015 is as
follows:
~" Increase
101.6 2015 (Decrease)
Land $ 517,262 $ 517,262 $
Buildings and improvements 1,769,026 1,861,778 (92,752)
Machinery and equipment v_- 317,498 368,632 (51.,1.:,1)
..._
Capital assets,net $ 2,603,786 $ 2,747,672 $ (143,886)
The District has no outstanding long-term debt.
..7 m
Sep 151 707:22a I:::::IVVI\4D 631 7887451 I,..a.11
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
CT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
7. I CCI,NQMIC FA p QI� l" )X!`,' r 1,Yl, ,R 13 1 GET
A. Subsequent Year's Budget
The general fund budget for the year ending December 31, 2017 is $813,000. This is an increase of
$198,129 or 32.22% from the previous year's budget. The District budgeted property tax revenues at a
53,827 increase (0.68®/x) over the prior years estimate.
Em Tax Ca
New York State law limits the increase in the property tax levy of local governments to the lesser of 2% or
the rate of inflation. There are additional statutory adjustments in the law. Local governments may
override the tax levy limit by first passing a local law that allows for the tax levy limit to be exceeded.. The
— override vote requires a 60%vote of the total voting power of the governing board. The District's 2017 tax
levy is within the tax levy limit.
8.
This financial report is designed to provide the reader with a general overview of the District's finances and to
demonstrate the District's accountability for the funds it receives. Requests for additional information can be
directed to:
Greg Thibodeau, Chairman
Fishers Island Waste Management District
P.D. Box 22
Fishers Island, NY 063941
Sep 151707:22a 1Z,I VV M 6317887451 p,12
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Statement of Net Position
December 31,2016
ASSETS $ 43,678
Cash
Investments 4-44,83095,376
Due front Town of Southold 24,928
Prepaids
Capital assets: 517,262
Not being depreciated- land
Being depreciated,net of accumulated depreciation2,086,524
.................
Total Assets3,212,598
LIABILITIES
Payables 34,119
Accounts payable 530
Payroll taxes payable
Unearned credits 95,376
Collections in advance ..................-
1
Total Liabilities 30,025
NET POSITION 2,603,786
Net investment in capital assets 478,787
Unrestricted
Total Stylet Position 3 082, 73
See Notes to Financial Statements
Sep 15 17 0 T22a RVVIVII..) 6317887451 p.13
FISHERS 1SLAND WASTE MANAGEMENT DISTRICT
Statement of Activities
For The Year Ended December 31,2016
Net(Expense)
Program Revenues Revenue and
Charges for Changes in
_ ExpqqsesServices Net Position
.......................... ... ------
FUNIONS/PRO GRAISS
General government support $ 881,023 $ $ C881,023)
Compost facility 63,460 63,460
Total Functions and Programs $ 881,023 $ 63,460 .. ..... _(817,563)
GENERAL REVENUES
Real property taxes 562,729
Use of money and property 3,723
Total General Revenues 566,452
Change in Net Position (251,111)
Total Net Position-Beginning of Year 3,333,684
............ -----I.
Total Net Position-End of Year S 3,082,573
See Notes to Financial Statements - 10-
Sep 15 17 0 7:22a FIVVMD 6317887451 P'l 4
FiSHERS 1SLAND WASTE MANAGEMENT DISTRICT
Balance Sheet®Governmental Funds
December 31,201.6
Total
Governmental
General Funds
............
............................
ASSETS
Cash $ 43,678 S 43,678
Investments 444,830 144,830
Due from other governments 95,376 95,376
Prepaids24,928 —-------------212.928
"Total Ass(..,ts $ 608,812 608,812
LIABILITIES
Payables $ 34,119 34,119
Accounts payable
Payroll taxes payable 530 530
Unearned credits
Collections in advance 9S,376 95,376
Total Liabilities130,025 .130,025
..........
FUND BALANCE
Nonspendable: Prepaids 24,928 24,928
Assigned,Designated for:
Compost facility/monitoring 102,350 102,35D
Compost facility/equipment 22,500 22,500
Other equipment 41,989 41,989
Wages 100,000 100,000
Consulting 33,713 33,713
Unassigned: Fund balance 153,307 153,307
Total Fund Balance478,787v =787
Total Liabilities and Fund Balance 608,81.2 608,812
... .........
See Notes to Financial Statements
Sep 15 1707,22a FIVVMD 6317887451 p15
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31,2016
Total Governmental Fund Balance $ 478,787
Amounts reported for goverrmental activities in the Statement of Net Position
are different because:
The cost of building and acquiring capital assets(land,buildings,
equipment) financed fro in the governmental funds are reported as
expenditures in the year they are incurred,and the assets do not appear
on the Balance Sheet,However,the Statement of Net Position includes
those capital assets among the assets of the DisLTict as a whole,and their
ori-0inal costs are expensed annually over their useful lives.
Original cost of capital assets $ 4,017J42
1
Accumulated depreciation __... , 0
2,63,786
.........................-,—--.-
$ 3,082,573
Total Net Position
See Notes to Financial Statements
Sep 15 17 07:23a FIWMD 6317887451 P16
FISHERS ISLAND WAST E MANAGEMENT DISTRICT
Statement of Revenues,Expenditures
and Changes in Fund Balance-Governmental Funds
Fol-Tile Yea t Eraled Dc(vw1)e1'3"l,2016
Total
Governmental
General Funds
REVENUES
Real property taxes $ 562,729 562,729
Use of money and property 3,723 3,723
Compost facility63,460 63,460
............-.-........ ..........
Total Revenues 629,912629,912
——-------------—--
EXPENDITURES
General government support 599,SO4 S99,SO4
Transportation 60,689 60,689
Employee benefits 76,944 76.944
Total Expenditures 737,137 737,137
Deficiency of Revenues Over Expenditures (107,225] (1.07,225)
Fund Balances-
Beginning of Year 586,012S$6,012
...................
End of Year $ 478,787 $ 478,787
See Notes to Fin2ncial Statements
Sep 15 170723a HVVMD 6317887451 pA 7
FISHERS]ISLAND WASTE MANAGEMENT DIS TRiCT
Reconciliation of the Governmental Funds Statement of Revenues,Expenditures and
Changes in Fund Balance to the Statement of Activities
For The Year Ended December 31,2016
Net Change in Fund Balance $ C107,225)
Amounts reported for governmental activities in the Statement of Activities
are different because;
Capital outlays to purchase or build capital assets are reported in
governmental funds as expenditures. However,for governmental
activities those costs are capitalized and shovm in the Statement of Net
Position and allocated over their useful lives as annual depreciation
expenses in the Statement of Activities.This is the amount by which
depreciation exceeded capital outlays in the period.
Capital outlays $
Depreciation expenseL 4 3,8 8 6)
Change in Net Position of Governmental Activities
See Notes to Financial Statements 14
Sep 15 17 07:23a RVVMD 6317887451 p.18
FISHERS ii LAN WASTE KAINAGiMENTI DISTRICT
NOTES TO FINANCIAL STATEMENTS
'!L-ANTACC0(jNjtN_(.j)()
J
Fishers Island Waste Management District (District) is 1",overned IwTowrl L-aw and olhor gc?riic�ral laws ofthe
State of New York. The Board of Commissioners is the lcgrslatjVe body respollsible for ovet"111 operation's. TlleM
Board of Commissioners consists of five members. Tiw pronary functiori of the Distrjc-�t is to pri:wide sr,,J'c ailcl
efficient disposal of household garbage, furniture, appliance-s, re(-,yclabICS, C(MstrUCflo " Wast(�, and yan"I and
landscaping debris.
The financial statements of the District have been prepared in conformity with accounting principles
generally accepted in the United States of Asnerica (GAAP) for governmental units. The Governmental
Accounting S[,wdlads Board (GASB) is the standard-setting body for establishing governmental accounting
and financial reporting principles. The more significant of these accounting policies are as follows;
A. Financial Reporting Entity
The Town of Southold, New York (Town) is financially accountable, as a result of fiscal dependency, for the
District. Long-term debt and operating deficits (if any) of the District, which are backed by the full faith
and credit of the Town, and other Fiscal matters, result in a fiscal interdependency with the Town.
Accordingly, the District has been determined to be a component unit of the Town of Southold, New York.
B, Basis of Presentation
(,-Lo v c,ri M d L S-til t e1nc_pt�?,
The Statement of Net Position and the Statement of Activities present information about the overall
govt^.rrunenuil finailcial actrvitieof tlht, District. Tfie Statement of Net Position presents the financial
position of the at fiscal year eiid. 'file SUtement of Activities presents a comparison between
PXpensc's 1"or w',-,jL,;tC (Jisposal anct revoqjues ft)rthe 1"iscal year. Program revenues include fees charged for
disposal ser vices, Revenues tha'fl are t"Ot clossified as program revenues, including real property
taxes,are presented as general revenues.
I qq ,i I I'Z I I c.i�,I I S I llsjLLc I Lt
The fund financial statements provide information about the District's funds. The District only has one
fund, the general fund. The general fund is the principle operating fund of the District and is used to
account for all financial transactions of the District except those required to be accounted for in another
fund, of which there are none,
C Measurement Focus and Basis of Accounting
Accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements,
The govern ment-wi cle financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred, regardless of when the related cash transaction takes place. Non-exchange
transactions, in which the District gives or receives value without directly receiving or giving Pqual value in
exchange, include real property taxes. On an accrual basis, revenue from real property taxes is recognized
in the fiscal year for which the taxes are levied.
Selo 15 17 0 723a FIVVVID 6317887451 P19
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTESTO FINANCIAL STATEMENTS
The fund financial statements are reported using the current financial resources ineasurernent focus and
the modified accrual basis of accounting. Revenues are recognized when measurable and available, The
District considers all revenues reported in the general fund 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 certain expenditures related to long-term liability, if any, which are recognized as
expenditures to the extent they have matured. General capital asset acquisitions are reported as
expenditures in the governmental funds.
D. Real Proper-ty Taxes
Property taxes are collected by the Town of Southold Receiver of'faxes on behalf of the District.The Town
of Southold Receiver of Taxes collects all property taxes for the Town, Suff"a.flk County, Town Special
Districts and School Districts. Town and County taxes are levied annually, andare duce by October 151. The
Town remits the amount of real property tax levied to the District from December to June. Responsibility
for collection of unpaid taxes is assumed by Suffolk County.AL December 31, 2016, $9.5,376 was due From
the Town.
E. 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 ;imount of assets, and liobilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported revenues and expenses during the reporting period.
Accordingly, actual results could differ from those estimates. Estimates and assumptions are made in a
variety of areas, including potential contingent liabilities.
F. Cash and Cash E q u iva lents/Investments
Cash and cash equivalents consist of cash on hand, bank deposits and investments with a maturity date of
three months or less from date of acquisition.
Investments consist of certificates of deposit with maturity dates of more than three months from date of
acquisition and are reported at fair value, based on quoted market prices,
G. Prepaid Items
Prepaid itenis ropre�cjlt payments inade by the District for -Bich benefits (wnd beyorldycar-en(j, Thu.se
payrnents to Vendors r(Alect costs applicable to hltaru accoll,1101,Lg I
and are recorded as issets )n
the S U.,Ite I'll e n t 4A Net Position airld Balance Sheet using, the C()HSL)uAj)ti01l lnvthod. (Jndt�r the cousumption
method, a current asset for the prepaid amotilas is recolrded at tlw time of purchase aad ;ln
expense/expenditure is reported in the year the goods or services are consumed,
H® Capital Assets
Capital assets are reflected in the district-wide financial statements. Capital assets purchased or acquired
with an original cost of$10,000 or more are required to be capitalized according to District policy and are
reported at actual cost, when the information is available, or estimated historical cost based on
professional third-party information. Donated assets are reported at estimated fair market value at the
date of donation.
Sep 15 1707:24a FIWMD 6317887451 p.20
HS--ERS 1SLAND WASTE MANAGEMENT DIS TRIG17
NOTES TO FINANCIAL STATEMENTS
All capital assets, except land and construction in progress, are depreciated on a straight line basis over
their estimated useful lives. Costs incurred for repairs and maintenance are expensed as incurred.
Estimated useful lives of capital assets as reported in the district-wide statements are as follows:
Esti mated
Useful Life
..................
Buildings 20-40 years
improvements and other 15-30 years
Machinery and equipment E-10 years
Infrastl-LICtUVO 25 years
1. Collections in Advance
Collections in advance arise when resources are received by the District before it has a legal claim to them,
as when grants monies are received prior to the incurrence of qualifying expenditures or when charges for
services monies are received in advance from payers prior to the services being rendered by the District,
These amounts are recorded as liabilities in the financial statements, The liabilities are removed and
revenues are recognized in subsequent periods when the District has legal C12iM to the resources.
Equity Classifications
st v, I I
In the government-wide statements there are three potential classes of net position:
Net investment in capital assets - consists of net capital assets (cost less accumulated depreciation)
reduced by outstanding balances of related debt obligations from the acquisitions, construction and
improvements of those assets.
Restricted - reports net position when constraints placed on the assets or deferred outflows of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments, orimposed by law through constitutional
provisions or enabling legislation.
Unrestricted - reports the balance of net position that does not meet the definition of the above two
classifications.
The District's net position consists of net investment in capital assets and unrestricted resources.
Fund Statements
.....................
The 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:
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.
Sop 151 70725a FWMID 631788745121
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
Restricted - Consists of amounts that are subject to externally enforceable legal purpose restrictions
imposed by creditors, grantors, contributors, or laws and regulation of other governments; or through
constitutional provisions or enabling legislation. The District has no restricted fund balance.
Assfgned- 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
narrower than the purpose of the general fund.
Unassigned - represents the residual classification for the District's general fund and could report a
surplus or deficit.
ts-
Any portion of fund balance may be applied or transferred For a specific purpose by law,voter approval if
required by law or by formal action of the Board of Commissioners if voter approval is not required.
Amendments oi- modification to the applied or transferred fund balance must also be approved by formal
action of the Board of Commissioners.
In circumstances where an expenditure is incurred for a purpose for which amounts are available in
multiple fund balance classifications (that is restricted, assigned or unassigned) the expenditure is to be
spent first from the restricted fund balance to the extent appropriated by either the original budget or a
board approved budget revision and then from the assigned fund balance to the extent that there is an
assignment and then from the unassigned fund balance.
TT fj,'INT) STATE'M.E,NTS AND TJ,lE_G0VERNM L'Wr..
2. ............................. .......................I................................
EMU,
NIV I DE rA!I,,.M --N—J'S
Due to the differences in the measurement focus and basis of accounting used in the fund statements and the
government-wide statements, certain Financial transactions are treated differently. The basic financial
statements contain a full reconciliation of these items. The differences result primarily from the economic
resource measurement focus of the government-wide statements, compared with the current financial
resources measurement focus of the fund statements.
A. Total Fund Balances of General Fund vs® Net Position of Governmental Activities
Total fund balances of the District's general fund differ from net position of governmental activities
reported in the Statement of Net Position. This difference primarily results from the long-term economic
focus of the Statement of Net Position versus the current financial resources focus of the governmental
fund Balance Sheet.
B. Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement of Activities
Differences between the Statement of Revenues, Expenditures and Changes in Fund Balance and the
Statement of Activities can fall into any of three broad categories.
Long-term revenue differences arise because governmental funds report revenues only when they are
considered"available", �.vhereas the Statement of Activities reports revenues when earned, Differences in
long-term expenses arise because governmental funds report on a modified accrual basis, whereas the
accrual basis of accounting is used on the Statement of Activities,
Sept 151707;26a 1=IVVIV1C) 6317887451 p.22
FISHERS ISLAND WASTE MiAN1'iGEMEIVT DIST_iC T
INCITES TO FINANCIAL STATEMENTS
t�:wrlkrtpl,.lBerl uCrl.tl lltli��;,at t'ur,a
Capital related differences include the difference between proceeds from the sale of capital assets
trru.�trts an( the gain or loss on the sale of assets as reported on the S rt.uu°�ment of
reported on fund st:.r4a
ActivAies, and the differ,�nce between recording an expenditure for the purctlase of capital items in the
fund statements and depreciation expense on those items as recorded in the Statement of Activities.
1, ct,r, r, l t'i iri 1a lit 1 r.°,Iirr�,t.q iri lI0' r I.Itc
Long-term debt transaction differences occur because the issuance of long-term debt provides current
financial resources to governmental funds, but is recorded as a liability in flit• Statein nt gal Net l`ta,itittn.
ue
In addition, both interest and principal are recorded as expenditures in th(,', hind st, -on]t1rtt�.s wlrerr r'
and payable, whereas interest cxpense is recorded in the Statement of Activities as it accrues, and
principal payments are recorded r,�r reduction of liabilities in the Statement of Net. Position.
3.
AND t (SLU 6�1,.,�PA_li:l l l.I lA
A. Budgets
The District ad ninistratr)n iri elxares a proposc,"d budget 1or approval by the Board of Commissioners, for
the llt�ni Carl fund, the only Crrnil whir a legally -adoptedIuttull.r�i 'll�t+.� hudget is then submitted to the Town,
southold 1"or hicluslonin fhe.l"own bua,l[Vt public hearing is hold thereon,
Appropriations are adopted at the program line item level.
Appropriations established by the adoption of the budget constitute a limitation on expenditures (and
encumbrances) that may be incurred. Appropriations 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 by the Board of 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
approves them because of a need that exists which was not determined at the time the budget was
adopted. No supplemental appropriations occurred during t to year.
Budgets are adopted annually on a basis consistent with GAAP.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded for budgetary control purposes to reserve that portion of the
applicable appropriations, is employed int e general fund. Encumbrances are reported as assignments of
fund balance, since they do riot constitute expenditures or liabilities. Expenditures for such commitments
are recorded in the period in which the liability is incurred. Encumbrances are shown in the fund financial
statements only. There were no encumbrances at December 31, 2016.
C. Over Expenditure of the Budget
Certain general fund appropriations were over expended. In addition, the general fund budget was over
expended in total.
19-
Sep 151707:26a FIWMD 6317887451 p.23
FISHERS ISLAND-WASTEMANAGEMENT DISTRICT'
_.....- NOTES TO FINANCIAL IAL STATEMENTS
4, D 1"t, SY11m 1,11.fN AN.CTt"�1 INS 1".I,El�I fI( 1±G, 1Jx) l�l. � 5'11 1 1"1"
The District's i11vCs14nWt1t policies are governed by siat€, art.,rattltes ar"ri°l District l: olie�r, l"'.esources must he
deposited in Fc cleral D opi;)sit Insurance Corporation fh"1 JC) ins. ,Jrocl com inerciaal banks or I.rLl�s compam es
located within the state. Permissible investments include Oblig,'Idons of tfie I).S. "Treasury, AgeniJe.s,
repurchase agreements and obligations c New York State a r its lo(Alities° Col iteral is irod for clerrrand
and time deposits and certificates of deposit not covered by FDIC insur rrir:r:��!„ C}rrlig..ations that may be tale aged
as collateral are obligations of the United. States and its Agencies and ohligatinns of New York State and its
Municipalities.Investments are stated at fair value.
Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned
to it. GASD directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by
depository insurance and the deposits a,r(:� K:,js follows:
A. Uncollat:eralized,
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 and certificates of deposit ere covered by FDIC insurance at year end.
The Districtwas not exposed to any material interest rate risk or foreign currency risk.
Capital asset balances and activity for the year ended December 31, 2016 were as follows;
Balance Balance
J
Additions s
tions uon
1...... .... _. � .......Red_cti� ... -' --
Governmental activities
Capi Lal assets not being depreciated
Land7,2
162 $ 517,262
$
5 ........ ...... ......._. ............. _- ..___.- ....
"rota[ capital assets
not being depreciated 517,262 517,262
Capital assets being depreciated
Buildings and improvements 2,777,258 2,7 77,258
Machinery and equipment 722,622 722,622
Total capital assets
being depreciated 3,499,880
Less accumulated depreciation for:
Buildings and improvements 915,480 92,752 1,008,232
m Machinery and equipment 353,990 51134- 405,1.:4
_. .....-. _— _. .. .
Total accumulated depreciation 1269,470143 886 1,413,356
Total capital assets,
p 0 7,0€3 524
.--
being depreciateraet 1 230,4
Capital ital assets,net2,747,672 °
p , , 143 8561 2 G03 7t3C
Depreciation expense was$143,886,
- 20-
Sep 151707:27a FIVVMD 6317887451 p.24-
FISHERS ISLAND WASTE WIANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
6. R(SK M,ANAG.EMI,',Nr
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. 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}rears®
® 1,RI,1)111 NJI
The District has evaluated subsequent events through May 12, 2017, which is the date the financial statements
were available to be issued,noting no additional matters requiring financial statement disclosure.
Sep 151707:27a FIVVN/ID 6317887451 p25
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Schedule of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual-General Fund
For The Year Ended December 31,2016
Final Budget
Original Final Variance with
................. Actual Actual
REVENUES
Local Sources
Real PropertyTaxes $ 562,721 $ 562,721. $ 562,729 $ 8
Use ofMoney&Property 3,900 3,900 3,723 (177)
.......... Compost Facility 48,250 48,250 63,460 15,210
..........
.............
Total Revenues 16'M,87 1, 6 14629912
,871 1-13,()4
,
............... ............
EXPENDITURES
Accounting $ 11,000 $ 11,000 11,000 $
Bank Charges 2,300 2,300 2,868 (568)
Building Maintenance 10,000 I0,000 4,810 S,1-90
Buildin- Utilities 12r000 12,000 10,427 1,573
Casual Labor 3,000 3,000 3,000
Commissioner's Fees 10,500 10,500 8,655 1,845
Compost Equipment Maintenance 11,000 11,000 3.793 7,207
Compost Facility Maintenance 7,250 (7,250)
Compost Facility Utilities 3,500 3,500 2,719 781.
Consultants 82,123 (82,123)
Employee Benefits,Taxes&Wages 328,615 328,61.5 379,483 (S0,868)
EmployeeTraining 5,000 5,000 6,392 (1,392)
Equipment Maintenance 15,000 15,000 12,601 2,399
Ferry Transportation 50,000 SO'Doo 60,689 (10,689)
Garbage Tipping Fees&Hauling 78,000 78,000 81,993 (3,993)
Hazardous Waste Removal 17,800 17,800 18,210 (41.0
Insurance 27,400 j
27,40D 29,004 (1,604)
Legal Fees 2,221 2,221 2,526 (605)
Office Expense 4,435 4,435 1,053 3,`382,
Research and Development 1,000 1,000 1,000
Transfer Station Utilities 4,000 4,000 3,642 358
Transfer Station Improvements 8,500 8,500 2,989 5,511
Workers'Compensation, 9,600 9,600 4,610 4,990
Total Expenditures $ 614,87l 14,87 1 737,137 $ ra
....................-
Net Change in Fund Balance (107,225)
Fund Balance- Beginning of Year 586,012
Fund Balance- End of Year 4,7 8,,787
....... .....
Note to Required Supplementary Information
Budgets are adopted an the modified accrual basis of accounting consistent with accounting principles generally accepted
in the United States of America,
See Paragraph on Required Supplernentary Information Included in Auditor's Report 22 -
Sep 1517O727e F|VVK8D 6317887451 p26
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