HomeMy WebLinkAbout2017 FI Waste Management District Aug 22 18 07:23a FIWMD 6317887451 p.2
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
State of New York
FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION WITH
INDEPENDENT AUDITOR'S REPORT
December 31, 2017
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FISHERS ISLAND WASTE MANAGEMENT DISTRICT
TABLE OF CONTENTS
Page
Independent Auditor's Report 1
- 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 13
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 1S
Required Supplementary Information other than MD&A:
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual-General Fund 21
Aug 22 18 07:23a FIWMD 6317887451 p.4
VINCrNT D.CULLEN,CPA
(195(1-2013)
CULLE N &_ DANOWSKI, LLP JAMES E.DANOWSKI,CPA
....................- —--------. ....................................
CERTIFIED PUBLIC ACCOUNTANTS PETER F.RO DRIGU EZ,CPA
)ILLS,SANDERS,CPA
DONALD I.HOPPMANIN,CPA
CHRISTOPBERV.REINO,CPA
ALAN YLI,CPA
INDEPENDENT AUDITOR'S REPORT
To the Board of Commissioners
Fishers Island Waste Management District
Fishers Island,New York
We hove audited the accompanying financial staLeolentS Of the 9a, activides arId eacl�,) major fund of the
Fishers Island Waste Management District (District), as Component 11ilit of the 'J'own of Southold, New York,as ofand
for the year ended December 31, 2017, and the related notes to the linanciai statements,whici-i collectively Comprise
the Districts basic F1 nandal state ni Cnts as listecl in the table of contents.
Management's Responsibility for the Financial Statements
Manar these I n I statements ift acc()I`dance with
,enwrtt is responsible for the preparation atid fair presentati on of t' 's fi ia cia
accounting principles gellerally accepted in the United States of Ai-nerica; this includes the design, imillewentatiorl,
and niaintenance of internal controlrelevantto the preparation and fair prPsenuation of finandal,statements that are,
free from material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these fir andal stateinents based on our auditWe conducted our audit in
accordance with auditing standards generally accepted in the tinned Stares cf'Anwrica.7'liose sti.indards r N� tlil-e'that
we plan and perform the audit to obtain reasonable assurance �11)oljt whether the fwaricial statenients are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
SLACTnents. The procedures selected depend on the amlitor's judgment, including the assessment of the risks of
material misstatement of the firiancial statements,whether due to fraud-or error. In making those risk assessments,
the audit-or considers iriternal Control relevant to the entitys preparation and fiiir prffientation of the financial
statements in order to design aucht procedures that are appropriate in the circunist:ances,but not for the purpose of
expressing an opinion On the effectiveness of the entity's internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the apprnpriateTiess of accounting policies Used aud the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the fimincial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
1650 ROUTE 112,FORT JEFFERSON STATION,N EW TORIC 11776-3060
C�_
PHONE:631-473-3400-FAX: 631-473-4863-WWAMCDLLP.NET
Aug 22 18 07:23a FIWMD 6317887451 p.5
µw 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, 2017, 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 21,be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America,which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of the
basic financial statements.We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
April 18, 2018
Z..
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FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Fishers Island Waste Management District's (District) discussion and analysis of the financial performance
_ provides an overall review of the District's financial activities for the fiscal year (,,nded December 31, 2017, in
conala�aj•ison with the year ended December 31, 2016, with emphasis on the cu resit year. The intent of ties
discussion and analysis is to look at the District's financial performance as a whole. rh.is should br read in
conjunction with the financial statements,which immediately follow this section.
Key financial highlights for fiscal year 2017 are as follows:
• The District's total net position, as reflected in the government-wide financial statements, decreased
by $281,668. This was due to an excess of expenses over revenues using the economic resources
measurement focus and the accrual basis of accounting. The District's total net position was
$2,800,905 at December 31, 2017.
• The District's general fund total fund balance, as reflected in the fund Financial statements, decreased
by $171,061. This was due to an excess of expenclitures over revenues using the current filaancial
resources measurement focus and the modified at:crual basis of accounting. The District's peneral
fundtotal fundbalance was$307,726 at December 31, 2017.
2. fIVERVI"I~lt f mIFMFNT'S.
This annual report consists of three parts —Management's Discussion and Analysis (MD&A) (this section),the
basic financial statements, and required supplementary information.The basic financial statements consist of
government-wide financial statements, fund financial statements, and notes to the financial statements. A
graphic display of the relationship of these statements follows:
a__
b a wi a u w.
.1.
log.
4:
...,,,,
A. Government-Wide Financial Statements
The government-wide financial statements are organized to provide an understanding of the fiscal
performance of the District as a whole in a manner similar to a private sector business. There are two
- government-wide financial statements - the Statement of Net Position and the Statement of Activities.
These statements provide both an aggregate and long-term view of the District's finances.
-3-
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FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
These statements utilize the accrual basis of accounting. This basis of accounting recognizes the financial
effects of events when they occur,without regard to the timing of cash flows related to the events.
__...w :,i'lie Steil: mttmtt rrt,pd Nest Pos lion,
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.
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 tirne the underlying financial event occurs.
Therefore, revenues and expenses are repotted in the statement for some it:erns 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 aver 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 District incurs the liability, except for certain expenditures related to long-term
liabilities, which are recognized as expenditures to the extent the related lial-Alibes matures each period,
,additionally, capital asset additions are reported as expenditures in governmental funds,whereas they are
capitalized and depreciated in the governt'nent-wide financial statements.
Governmental funds are used to account for essentially the same functions reported as goveriunciltal
` activities in the government-wide financial strxtenient . However, the governmental fund financial
statements focus on shorter terin inflows acre] outflows of.spend.rble resources, as well as on balances: of
sf'wndizibler resources available at the end of the fiscal year fdtspending in Future years. CorIsequell tl ^, the
-its provide detailed short-terata Griew of the, District's opet�al:ions arld they
governmental fierce] sttrtera
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 governmental funds with similar information presented.
l-'or° governme�atal activities in the government-wide financial statenie nts. By doing so, you may better
understand the long-term impact 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.
4-
Aug 22 18 07:23a FIWMD 6317887451 P.8
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
3. .I d I NG,, : �, LYSIS-0- "'TlIED '1�14:�G AS 1 m
A. Net Position
The District's total net position decreased by$281,668 between fiscal year 2017 and 2016.A summary of
the District's Statements of Net Position is as follows:
Increase Percentage
m, .... 2017 2.016 _... 0 .a w � Change
Current and Other Assets S 328,721 $ 608,812 $ (280,091) (46,01)%
pi ....... ..........�mm_403,786 (110,607] (4.25)%
Capital Assets,Net 2,493 179 2,6 w_
Total Assets 2,821,900... 3,212,598 (390,698) (12.16)%
Current and Other Liabilities y 20,995 130,025 X1139 C1#CIS (83.85)%
Net Position
Net Investment in Capital Assets 2,493,179 2,603,786 (110,607) (4.25)%
_. Unrestricted 307,726 478,787 (171,061 (35.73)0/o
Total Net Position $ 2,800,905 $ 3,082,573lr 781 ��68 -
(9.14)%
(
Current and other assets decreased by$280,091, as compared to the prior year. The decrease is primarily
related to decreases in amounts due from the Town of Southold of$95,376 and in the principal amount
invested in certificates of deposit with maturities greater than three months of$202,730. The decrease in
the due from the Town of Southold results from the Town forwarding all real property taxes collected on
behalf of the District to the District as of December 31, 2017. In 2016, the Town had collected $95,376 of
2017 District real property taxes which had not been remitted to the District at December 31, 2016.
Capital assets, net decreased by $1.10,607, as compared to the prior year. This decrease is due to
depreciation expense in excess of capital asset additions. The accompanying Notes to the Financial
Statements, Note 5 "Capital Assets"provides additional information.
Current and other liabilities decreased by $109,030, as compared to the prior year. This decrease is
attributable to a $95,376 reduction in the amount real property taxes collected in advance and accounts
payable decreasing $14,037. At December 31, 2016, the District recognized a liability for 2017 real
property taxes collected in advance,which did not occur in the current year.Accounts payable decrease is
mainly due to timing differences of bills paid at year end,
The net investment in capital assets is the investment in capital assets at cost such as land, buildings and
improvements, and machinery and equipment, net of depreciation. This number decreased over the prior
year because depreciation expense of$142,806 was in excess of capital asset additions of$32,199,
_ . The unrestricted amount of$307,726 relates to the balance of the District's net position.
- 5-
Aug 22 18 07:24a FIWMD 6317887451 p.9
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
B. Changes in Net Position
The results of this year's operations as reported in the Statement of Activities are as follows:
_ Increase Percentage
2017
2016Drese Change
�
Revenues
Program Revenues
Charges for Services $ 56,188 $ 63,460 $ (7,272) (11.46)%
Operating Grants 8,726 8,726 N/A
General Revenues
Real Property Taxes 566,554 562,729 3,825 0.68 %
Other 23,057 1.x,33'4• 100.00 %
a
Total Revenues 651,525 629,912 24,613 3.91 %
Expenses
General Government Support 936,193 881,023 55,170 6.26 %
Decrease in Net Position � 28J af�8 _ _._ 251 111 $_„”„mm( ,"5„ 12.17 %
The District primarily relies on real property taxes to st:rpport its operations. The net increase in total
revenues in 2017 as compared to 2016 was $24,61.3 as shown above. The increase is due to the District
receiving a Household Hazardous Waste grant for $8,726 and insurance recoveries of$19,022 for repairs
to a piece of the District's equipment.
The toLau expetrses in 2017 were $55,170 or 6,26%greater than 2016. In 2017, the District had increased
workers compensation exp(.nses of $10,763, health insurance expenses of $11,473, heavy equipment
rrsa.inte:nazice (�xpt.nses of$26,186, and salaries of$8,139.
4. I Ilvf I I AISAI." Sla 4II IwI'I°a I7I S' "Itl ...I ") ,
At December 31, 2017, the general fund, which is the only governmental fund, reported a fund balance of
$307,726,which is a decrease of$171,061 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
2017 2016 (Decrease)
General Fund
Nonspendable:Prepaids $ 22,449 $ 24,928 $ (2,479)
Assigned:Designated 237,355 300,552 (63,197)
Unassigned:Fund balance 47,922 153,307 ��5,3e5
.1J307,726 .__ $ X71,061.
_.. 478 717: ._
6F
Aug 22 18 07:24a FIWMD 6317887451 p.10
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Continued)
5. _CtiI�1 �C tllwll lxl�I 1x1*"1 C "I'.:IIGI l�l�'.1
A. 2017 Budget
The District's general fund original budget for the year ended December 31,2017 was $813,000.
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 balata,ce is the component of total fund balance that is the residual of
prior years' excess revenues over expenditures, net of transfers to restricted fund balances and
assignments, such as
amounts classified as nonspendable.The change in this balance demonstrated through a comparison of the
actual revenues and expenditures for the year compared to budget follows:
Opening,Unassigned Fund Balance $ 153,307
Revenues Under Budget (158,175)
Expenditures Over Budget (12,586)
Change in Nonspendable Fund Balance 2,479
Net Change in Assigned Fund Balance 63,197
Closing,Unassigned Fund Balance $ 47,922
()pet � tg f�lllzlt' I_lrpcl Na�a_px
The $153,307 shown in the table is the portion of the District's December 31, 2016 fund balance that was
unassigned.
9CVe0A (113, er -0gc(
The 2017 budget for revenues was $€113,000. Actual revenues received for the year were $654,525.
Actual revenues were less than estimated or budgeted revenues by$1.58,475. This difference decreases
the unassigned portion of the general fund - Fund balance from December 31, 2016 to December 31,
2017.
EN ac;pIrlit pp r�c�s (1�'�.:.11pzd .eft
The 2017 budget for expenditures W as$813,000. Actual expenditures for 2017 were $82S,586,The final
budget was over expended by $12,586. ]'his over expenditure was primarily the result of higher thau
anticipated equipment mainterjance, costs. This over expenditure decreases ases the timassigned portion of
the gcneral fataad - fund balance from Decerraper 31, 2016 to December 31, 2017.
C la aaal rt, Non 1s _ a lr.uracf 1.3 aliMcµe
The District prepaid various insurance policies at December 31, 2017. This resulting balance sheet asset
prep aids) cannot be spent tuec arse it is not in a spendahle form, meaning it will neat:be converted to cash.
Accordingly, an equal amount of fund, balance is classified as non.spend«able. The decrease in
nonspendtable fund balance incr,-eases aaurausslgaaed .fund balance.
-7-
Aug 22 18 07:25a FIWMD 6317887451 PA 1
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
_.- (Continued)
f9..v1 Char ,uk 1 ,.::Ai1j„g"ped
Assigned fund balance includes amounts earmarked for specific purposes. The decrease in assigned fund
balance increases unassignedfund balance.
.. �rr�llu��,c
P-ased upon the star,aaniary changes shown in the above table, the DisLrict will begin the 2018 fiscal year
with an unassigned fund balance. of$4-7,922. This is a $105,385 decrease from the prior year unassigned
fund balance.
6. GA-111 X L A-5E1 Al`ti111 l C)Il"� -"li"I,11M V UR I
At Decernlrer 31, 1017, the Dista ict: laad invested in a broad range Of capital assets, as indicated in the, table
_.._ below. The net decrease in capital asses is due to depreciation of$1.4.1,806 un, excess of capital additions of
" - " l
$32,1.91 recorded for the year ended Decernber 31, 2017.. A sun`inaary of the District's capital assets, suet: of
depreciation at llc°cemher°31.,2017 and 2016 is as follows;
Increase
2017 2016 _ Dr'CTa ,
-- Land $ 517,262 $ 517,262 $ -
Buildings and improvements 1,676,702 1,769,026 (92,324)
Machinery-and equipment 299,215317,498
Capital assets,net $ 2,493 179 it 2,603,786
The District has no outstanding long-term debt.
.. 7. l CC1 QMC�,,1�'�tCCTt'� Il UEAE�` It' 13UPFI:
A. Subsequent Year's Budget
The general fund budget for the year ending December 31, 2018 is $908,975. This is an increase of
$95,975 or 11.8% from the previous year's budffet. The District budgeted property tax revenues at a
$289,027 increase (510/6) over the prior year's estimate.
B. Tax Cap
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 a djus trn e tits in the law, Local governments may
override the tax levy limit by first massing a local lav 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 2018 tax
levy required an override vote.
8. NjACTING TLII 1 ISTI1,ICCT
Thisfinancial report is designed to provide the reader with a.general uverview ofthe District's finances and to
p g
-
demonstrate the District's accountability for the funds it receives. Requests for additional infornaation can be
directed to:
Greg Thibodeau, Chairman
Fishers Island Waste Management District
P.O. Box 22
Fishers Island, NY 06390
Aug 22 18 07:25a FIWMD 6317887451 p.12
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Statement of Net Position
_. December 31,2017
ASSETS
Cash � 64'172
Investments 242,100
Prepaids 22,449
Capital assets:
Not being depreciated-land 517,262
Being depreciated,net of accumulated depreciation 1 AS,�317-..
Total Assets 2,821900
LIABILITIES
Payables
422
Accounts payable 20,573 573
Payroll taxes payable ....
Total Liabilities 20,995
NET POSITION
179
Net investment in capital assets 2,493,
Unrestricted 307,726
Total Net Position 2°00I�S
See Motes to Financial Statements - 9 -
Aug 22 18 07:25a FIWMD 6317887451 p,13
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Statement of Activities
_. For The Year Ended December 31,2017
Net(Expense)
Program Revenues Revenue and
Charges for Operating Changes in
'..es Services � Grants Net Position
�
FUNCTIONS/PROGRAMS
General government support $ 936,193 $ $ $ (936,193]
Compost facility 56,188 8,726 64,914
19 3:
Total Functions and Programs 1� 936 56,188 f172 ._ -... (871,279�-- w..�.
GENERAL REVENUES
Real property taxes 566,554
Use of money and property 4,D35
Sale of property and compensation for loss 19,022
- Total General Revenues 389!611
Change in Net Position (281,668)
r.,M.
Total Net Position-Beginning of Year 3,082,573
Total Net Position-End of Year $ 2,800,905
See Notes to Financial Statements - 10-
Aug 22 18 07:25a FIWMD 6317887451 p.14
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Balance Sheet-Governmental Funds
December 31,2017
Total
Governmental
General Fends
ASSETS
Cash $ 64,172 $ 64,172
Investments 242,100 242,100
Prepaids22.449 22,449
..-�_._...._
Total Assets 328 221 - 32B.721
LIABILITIES
Payables
- Accounts payable $ 20,422 $ 20,422
Payroll taxes payable _ 573 -- 573
Total Liabilities 20,995 20„995
FUND BALANCE
Nonspendable:Prepaids 22,449 22,449
Assigned,Designated for:
Compost facility/monitoring 95,400 95,400
Compost facility/equipment 22,500 22,500
Other equipment 19,455 19,455
Wages 100,000 100,000
Unassigned:Fund balance 47,922 47,922
Total Fund Balance 307,726 307,726
Total Liabilities and Fund Balance $ 328,721_ $ 328,721
See Notes to Financial Statements -11-
Aug 22 18 O7;26a FIWMD 6317887451 p.15
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31,2017
Total Governmental Fund Balance S 307,726
Amounts reported for governmental activities in the Statement of Net Position
are different because:
The cost of building and acquiring capital assets(land,buildings,
equipment) financed from the governmental funds are reported as
expenditures in the year they are incurred,and the assets do no t appear
on the Balance Sheet.However,the Statement of Net Position includes
those capital assets among the assets of the District as a whole,and their
original costs are expensed annually over their useful lives.
Original cost of capital assets $ 4,049,341
Accumulated depreciation (1,556,162)
2,49 3,179
Total Net Position $ 2,800,905
See Notes to Financial Statements - 12 -
Aug 22 18 07:26a FIWMD 6317887451 p.16
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Statement of Revenues,Expenditures
and Changes in Fund Balance-Governmental Funds
For The Year Ended December 31,2017
Total
Governmental
General Funds
REVENUES
Real prop ertytaxes $ 566,554 $ 566,554
Use of money and property 4,035 4,035
Compost facility 56,188 56,188
Sale of property and compensation for loss 14,022 19,022
Grants8,726 8,726
Total Revenues 654,525 654,525
EXPENDITURES
General government support 671,083 671,083
Transportation 64,610 64,610
Employee benefits
� ..... 89,893 89,643
Total Expenditures mm mITIT..„825,586 825,586
Net Change in Fund Balance (171,061) (171,061)
Fund Balances-
Beginning of Year 478,787 478,787
End of Year $ :101 77 f $ 307,726
See Notes to Financial Statements - 13-
Aug 22 18 07:26a FIWMD 6317887451 p.17
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
Reconciliation of the Governmental Funds Statement of Revenues,Expenditures and
Changes in Fund Balance to the Statement of Activities
For The Year Ended December 31,2017
Net Change in Fund Balance $ (171,061)
Amounts reported for governmental activities in the Statement of Activities
are different because:
Caaital fZel.k1tg(LL)� es
Capital outlays to purchase or build capital assets are reported in
governmental funds as expenditures.However,for governmental
activities those costs are capitalized and shown in the Statement of Net
Position and allocated over their useful lives as annual depreciation
expense in the Statement of Activities.This is the amount by which
depreciation exceeded capital outlays in the period.
Capital outlays $ 32,199
Depreciation expense1142,8061_
(110,607 .
Change in Net Position of Governmental Activities ( 81,668
See Notes to Financial Statements - 14 -
Aug 22 18 07:26a FIWMD 6317887451 p.18
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
_._ NOTES TO FINANCIAL STATEMENTS
1. StU MAl jffr,lSj NIFICyAIU F Ct t IJ T I" 1 't ,w>'C11'.IC1I'S
Fishers Island Waste Management District (District) is governed by Town Law and other general laws of the
State of New York. The Board of Commissioners is the legislative body responsible for overall operations.The
Board of Commissioners consists of five members. The primary function of the District is to provide safe and
efficient disposal of household garbage, furniture, appliances, recyclables, construction waste, and yard and
landscaping debris.
The financial statements of the District have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) for governmental units. The Governmental
Accounting Standards 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
Governinynt 'w i ii.jiciai Stateme)t.i
The Statement of Net Position and the Statement of Activities present information about the overall
governmental financial activities of the District. The Statement of Net Position presents the financial
position of the District at fiscal year end. The Statement of Activities presents a comparison between
expenses for waste disposal and revenues for the fiscal year. Program revenues include fees charged for
certain disposal services and operating grants. Revenues that are not classified as program revenues,
including real property taxes,are presented as general revenues.
9wUj:L Finaa ill Sthite etjtm
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 government-wide 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 equal 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.
- 15-
Aug 22 18 07:27a FIWMD 6317887451 p.19
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FCNANCIAL STATEMENTS
(Continued)
The fund financial 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 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 Property Taxes
Property taxes are collected by the Town of Southold Receiver of Taxes on behalf of the District.The Town
of Southold Receiver of Taxes collects all property taxes for the Town, Suffolk County, Town Special
Districts and School Districts.Town and County taxes are levied annually, and are due by October 15t. 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. There was no amount due from the Town at
December 31, 2017.
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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported revenues and expenses/expenditures 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 Equivalents/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 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 Statement of Net Position and Balance Sheet using the consumption method, Under the consumption
method, a current asset for the prepaid amounts is recorded at the time of purchase and an
expense/expenditure is reported in the year the goods or services are consumed.
H. Capital Assets
Capital assets are reflected in the government-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 acquisition value at the date of
donation.
- 16-
Aug 22 18 07:27a FIWMD 6317887451 p.20
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
[Continued)
- 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 government-wide statements are as follows:
Estimated
Us eful Li fe
Buildings 20-40 years
Improvements and other 15-30 years
Machinery and equipment 8-10 years
Infrastructure 25 years
1. Equity Classifications
G DW! . L1 .-Wi(l a11c in idk:A
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, or imposed 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,
k'tri d to ttjl L l
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,
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.
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
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.
_17_
Aug 22 18 07;28a FIWMD 6317887451 p.21
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
(Continued)
Fund Balance I'slLiif_jc cion
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 or modification to the applied or transferred fund balance must also be approved by formal
action of the Board of Commissioners.
[n 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.
2. Ip T ' ae_l e f, u O , Cl�1`I 11'�l-; fI-I, 7 Q" " III_! I F l! "lJJE FUND S"l"y
WIDE STATEMENTS
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.
Lon-Terni Revenue and I�xnense Differ Aggs
Long-term revenue differences arise because governmental funds report revenues only when they are
considered"available", whereas 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.
,..� wCwcfl�r�.�r I [t e 1�teff l. a f"��tr•c�: .
Capital related differences include the difference between proceeds from the sale of capital assets
— reported on fund statements and the gain or loss on the sale of assets as reported on the Statement of
Activities, and the difference between recording an expenditure for the purchase of capital items in the
fund statements and depreciation expense on those items as recorded in the Statement of Activities.
Le r ai e.Ul_I t,"cz saction Differences,
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 the Statement of Net Position.
In addition, both interest and principal are recorded as expenditures in the fund statements when due
- 18-
Aug 22 18 07:29a FIWMD 6317887451 p.22
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
(Continued)
wW... and payable, whereas interest expense is recorded in the Statement of Activities as it accrues, and
principal payments are recorded as a reduction of liabilities in the Statement of Net Position.
I STEIMAIIDSIIIF'.C+DI�II I I l:' 3N1 '.. I ;(I[l l'�( 11;ITY
A. Budgets
The District administration prepares a proposed budget for approval by the Board of Commissioners for
the general fund,the only fund with a legally adopted budget.The budget is then submitted to the Town of
Southold for inclusion in the Town budget and a public hearing is held 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 the year.
_._. Budgets are adopted annually on a basis consistent with GAAP.
B. 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 in the general fund. Encumbrances are reported as assignments of
fund balance, since they do not 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 31,2017.
C. Over Expenditure of the Budget
Certain general fund appropriations were over expended. In addition, the general fund budget was over
expended in total.
4. IFOSI"I"S' TIT'Ill l IIIANC lAL INS I"U lN" C 'I9VESTMENTS
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,
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 may be pledged
as collateral are obligations of the United States and its Agencies and obligations 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. GASB directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by
depository insurance and the deposits are as follows:
- 19-
Aug 22 18 07:29a FIWMD 6317887451 p.23
FISHERS ISLAND WASTE MANAGEMENT DISTRICT
NOTES TO FINANCIAL STATEMENTS
(Continued)
A. Uncollateralized,
B. Collateralized bysecurities,held by the pled gingfinancial institution, or
C. Collateralized by securities held by the pledging financial institution's trust department or agent but
not in the District's narrie.
The District's aggregate bank balances and certificates of deposit were covered by FDIC insurance at year end.
The District was not exposed to any material interest rate risk or foreign currency risk.
S. QA P IT AJ-.ASs
Capital asset balances and activity for the year ended December 31, 2017 were as follows:
Balance Balance
12/31/16 Additions --Reductions 12/31ZI7
Governmental activities
Capital assets notbeing depreciated
Land517,262 1 $ $ 517.262
Total capital assets
not being depreciated17t262
. . ...... 517,262
Capital assets being depreciated
Buildings and improvements 2,777,258 2,777,258
Machinery and equipment 722,622 32,199 754,821
Total capital assets
being depreciated 3,499,880
32,199
- 3,532,079
.........
Less accumulated depreciation for:
Buildings and improvements 1,008,232 92,324 1,100,556
Machinery and equipment -105,124 50,482
Total accumulated depreciation 1,413,356 14.2 5,1306 5,1 62,606
6
Total capital assets,
being depreciated,net 1,975,917
Capital assets, net ��B 6 2 49 3,179
,
Depreciation expense was$142,806.
6. IRI S X BA NA Qr-,M U,N
_T
The District is exposed to various� risics of 1c)ss r(,,Iated to torts; theft of", damage to, and destruction ()fassets;
injuries to enIP)Oyces,- errors and oniissicins; and natUl'al disasters. These risks al-e Covered by conunercial
irISUrance purchased From independent third pal-ties, Settled claims from these risl�s have not exceeded
COMM01-cial insurance coverage for the past,three years.
7. 10113- t1 EU VE N
J S
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.
-20®
Aug 22 18 07:30a FIWMD 6317887451 p.24
FISHlslls ISLAND WASTE MANAGEMENT DISTRICT
Schedule ofllevennies,Expenditures and Changes in Fund Balance
Budget and Actual-General Fund
For The Year Ended December 31,2017
Final Budget
Original Final
REVENUES Budget BuVariance with
d e t . �Aual Actual
Real Property Taxes $ S66,548 $ 566,548 $ 566,554 $ 6
Use of Money&Property 3,400 3,400 4,035 635
Compost Facility 243,052 243,052 56,188 (186,864)
Sale of Property and
Compensation for Loss 19,022
Grants 19,022
8
Total Revenues87 3000 654,S25 $ X158,I
EXPENDITURES
Accounting $ 11,000 $ 11,000 11,000 $
Bank Charges 3,100 3,100 3,180 (80)
Building Maintenance 15,500 15,500 9,590 5,910
Building Utilities 8,000 8,000 9,401 (1,401)
Commissioner's Fees 13,000 13,000 9,105 3,895
Compost Equipment Maintenance 4,215 4,215 6,960 (2,745)
Compost Facility Maintenance 6,950 (6,950)
Compost Facility Utilities 2,800 2,800 3,541 (741)
Consultants 100,000 100,000 71,866 28,134
Employee Benefits,Taxes&Wages 443,245 443,245 400,576 42,669
Employee Training 4,000 4,000 6,560 (2,560)
Equipment Maintenance 11,500 11,500 73,781 (62,281)
Ferry Transportation 60,000 60,000 64,610 4,610
Garbage Tipping Fees&Hauling 77,000 77,000 83,457 (6,457)
Insurance 24,870 24,870 23,782 1,088
Legal Fees 10,000 10,000 229
Office Expense 9,771
5,270 5,270 12,490 (7,220)
Transfer Station Utilities 3,500 3,500 9,589 (6,089)
Transfer Station Improvements 4,000 4,000 3,545 455
Workers' Compensation 12,000 12,,000__ 15,374
Total Expenditures 0o S 83:3 00iI 825,586 $ (12,586
p $ 11"110
Net Change in Fund Balance (171,061)
Fund Balance-Beginning of Year 478,787
Fund Balance-End of Year 307,726
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 Supplementary Information Included in Auditor's Report -21 -