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HomeMy WebLinkAbout2001 FIFD I r I. ~ .-: FISHERS ISLAND FERRY DISTRICT . .: . , 110'. " : ":,11" , "* I!t!$' r' '~" FINANCIAL STATEMENTS " " " I.~ .~ .' "~."". , " III: h ~ ~. DECEMBER 31, 2001 " " ~, .. , i , , .., , , ~ OHERTV , EALS_& ANKS, P.C. , CERTIFIED PUBLIC ACCOUNTANTS RECEIVED V 'I , , OGT 8 2002 SOllthold Towo Clert . . FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 2001 \ CONTENTS Independent Auditor's Report 1 Balance Sheet 2 Combined Statement of Revenues, Expenses, and Changes in Fund Balance 3 Combined Statement of Revenues, Expenses, and Changes in Fund Balance - Budget and Actual - Special Revenue Fund 4 Notes to Financial Statements 5 DOHERTY, BEALS 8< BANKS, P,C, DOHERTY, BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS '87 WILLIAMS STREET CARL A. BANKS. CPA POST OFFICE BOX 58 STACEY L. GUALTIERI, CPA NEW LONDON, CONNECTICUT 08320 KATHLEEN A.. STaAMER, CPA EVELYN A. COOKE, CPA leeo) 443-2033 DAVID J. MICIILI, CPA FAX (880) 444-7086 Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 INDEPENDENT AUDITOR'S REPORT We have audited the accompanying general-purpose financial statements of the Fishers Island Ferry District, a component unit of The Town of Southold as of and for the year ended December 31, 2001, and 2000. These general-purpose financial statements are the responsibility of the Fishers Island Ferry District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Fishers Island Ferry District as of December 31, 2001, and 2000, and the results of its operations and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. ~~E~~~S~ June 5, 2002 Revised September 13, 2002 - 1 - ., .Q ..,...,. ..,. ..,. ..,. _'II Mill 1""'1 IIIII...-IM I III ri riA'11 0\111 0\ 111110\0\ I III 0\ " e .... .. ... .. ~ 0\ 0\ 0\0\ 0\ G No N NoN No ~~~ M M MM M " ~ ~ g0 (I) (/) (I) C> 0 .:I ., .: 11 II U ~ r-- ..,. M ..,. .... ..,. ..,. u e,11 .......N." 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FISHERS ISLAND FERRY DISTRICT COMPONENT UNIT TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 3 ~, 200~ Special Capital REVENUES Revenue Proiects Operations $1,368,402 $ -- Charters 40,06~ -- Airport 10,000 - - Mail ~7,552 -- Theater 16,775 -- Rents 26,24~ - - Interest 6,106 1,515 Property taxes 315,000 -- TOTAL REVENUES 1.800,~37 1,5~5 EXPENDITURES Operations - ferry ~78.~84 -- Payroll 835,958 - - Office expense 8,061 -- Commissioner fees 5,950 -- Accounting 7,300 - - Theater ~7.539 -- Airport 38,879 -- Mail 5,800 - - Insurance 44.141 -- Bond - principal and interest 45,390 - - Property tax 24.336 -- Repairs - ferry 150,8~5 - - Repairs - docks 62,644 - - New London terminal project 6,777 500,604 Social security 61,061 - - Health insurance 107,643 -- NYS retirement 4,406 -- Insurance claims 5,180 - - TOTAL EXPENDITURES 1,6~0,064 500,604 EXCESS (DEPICIENCY) OP REVENUES OVER EXPENDITURES 190,073 (499,089) FUND BALANCE - BEGJ:NNING 164.321 -- FUND BALANCE - ENDING $ 354.394 $ (499,089) See notes to financial statements. - 3 - DOHERTY, BEALS 8< BANKS, P.C. FISHERS ISLAND FERRY DISTRICT COMPONENT UNIT TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31, 2001 VARIANCE FAVORABLE REVENUES BUDGET ACTUJIL (UNFAVORABLE) Operations $1,310,000 $1,364,627 $ 54,627 Charters 10,000 40,061 30,061 Airport 18,600 10,000 (8,600) Mail 17,600 17,552 (48) Theater 15,000 16,775 1,775 Rents 9,750 26,241 16,491 Interest 20,000 6,106 (13,894) Property taxes 315,000 315,000 - - Other revenue -- 3,775 3,775 TOTJIL REVENUES 1,715,950 1,800,137 84,187 EXPENDITURES Operations - ferry 200,000 178,184 21,816 Payroll 825,000 835,958 (10,958) Office expense 6,000 8,061 (2,061) Commissioner fees 6,000 5,950 50 Accounting 6,000 7,300 (1,300) Theater 14,000 17,539 (3,539) Airport 25,000 38,879 (13,879) Mail 5,400 5,800 (400) Insurance 55,000 44,141 10,859 Bond - principal and interest 45,500 45,390 110 Property tax 26,000 24,336 1,664 Attorney's fees 5,000 - - 5,000 Repairs - ferry 80,000 150,815 (70,815) Repairs - docks 170,000 62,644 107,356 New London terminal project 200,000 6,777 193,223 Social security 63,200 61,061 2,139 Health insurance 100,000 107,643 (7,643) NYS retirement 8,000 4,406 3,594 Insurance claims 4,000 5,180 (1,180) TOTAL EXPENDITURES 1,844,100 1,610,064 234,036 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (128,150) 190,073 $ 318,223 FUND BALANCE - BEGINNING 164,321 FUND BALANCE - ENDING $ 354,394 See notes to financial statements. - 4 - DOHERTY, BEALS 8< BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Fishers Island Ferry District operates through the Town of Southold as an organization exempt from income tax. It is a component unit of the Town of Southold. The Fishers Island Ferry District's function is to provide residents of Fishers Island with transportation to and from Fishers Island, New York, and New London, Connecticut. Fund Accounting The District uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, however I is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The District records its transactions in the fund types and account groups described below. Fund Categories Special Revenue Fund - used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Capital Projects Fund - used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by special assessment funds and trust funds) . Trust and Agency Funds - used to account for money received and held in the capacity of trustee, custodian or agent. These include expendable trusts, non-expendable trusts, and agency funds. Account Groups Account Groups are used to establish accounting control and accountability for general fixed assets and general long-term debt. The two account groups are not "funds." They are concerned with measurement of financial position and not results of operations. - 5 - DOHERTY, BEALS 8< BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Account Groups (continued) The General Fixed Assets Account Group - used to account for land, buildings, improvements other than buildings, and equipment utilized for general government purposes. The General Long-Term Debt Account Group - used to account for all long-term debt. Basis of Accounting The Fishers Island Ferry District uses the modified accrual basis of accounting. Under this basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Material revenues that are accrued include state and federal aid, sales tax and certain user charges. Expenditures are recorded when incurred except principal and interest on indebtedness are recognized when due, and compensated absences, such as vacations and sick leave, which vests or accumulates I are charged as an expenditure when paid. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and revenue and expenses during the reporting period. Actual results could differ from those estimates. - 6 - DOHERTY, BEALS 8< BANKS. P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 2. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recorded at cost and consist of the following classes of assets: Land $ 41,717 Docks and dolphins 2,107,994 Vessel - Munnatauket 904,357 Vessel - Race Point 1,485,382 Buildings and improvements 3,743,569 Terminal expansion 1,029,860 Office equipment 50,054 Terminal equipment 47,360 TOTAL PROPERTY, PLANT AND EQUIPMENT $9,410,294 3. BONDS PAYABLE Race Point Debt Service Serial Bonds maturing and payable annually with interest at 9.1% per annum. Net book value of the Race Point is $693,211. $ 120,000 Pension System Serial Bonds Serial Bonds maturing and payable annually with interest at 8% per annum. 9.914 TOTAL BONDS PAYABLE $ 129,914 The following are the maturities of bonds payable for each of the next four years. 2002 $ 32,203 2003 32,571 2004 32,571 2005 32.569 $ 129.914 - 7 - DOHERTY. BEALS 8< BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 3. BONDS PAYABLE (Continued) Bond Anticipation Note Bond anticipation notes (BAN's) are generally accounted for in the capital projects funds. The notes or renewal thereof may not extend more than two years beyond the original date of issue unless a portion is redeemed within two years and within each 12-month period thereafter. State law requires that BAN's issued for capital purposes be converted to long-term obligations within five years after the original issue date. However I BAN's issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made. To Be Redeemed in 2001 Interest Budget Description Amount Rate Appropriations Bonds New London Terminal Project $ 575,000 2.47% $ 200,000 $ 375,000 4. RETIREMENT SYSTEM Plan Description The Fishers Island Ferry District, a component unit of the Town of Southold, participates in the New York Employee's Retirement System, the New York State Policemen's and Firemen's Retirement System and the Public Employee's Group Life Insurance Plan (Systems) . These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefit as well as death and disability benefits. The New York State Retirement and Social Security Law (NYSRSSL) govern obligations of employers to contribute and benefits to employees. As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration and transactions of the business of the Systems and for the custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing the New York State and Local Retirement System, Gov. Alfred E. Smith State Office Building, Albany, NY 12244. - 8 - DOHERTY, BEALS 8< BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 4. RETIREMENT SYSTEM (Continued) Funding POlicy The Systems are noncontributory except for employees who joined the New York State and Local Employees' Retirement System after July 27, 1976, who contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of payroll of members I which shall be used in computing the contributions required to be made by employers to the pension accumulation fund. The Town of Southold is required to contribute at an actuarially determined rate. The required contributions for the current year and two preceding years were as follows: ERS PFRS 2001 $ 61,327 $ 63,568 2000 32,226 86,149 1999 24,343 67,993 The Town's contributions made to the Systems were equal to 100% of the contributions required for each year. The districts portion of the contribution was $4,406 in 2001. Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts relating to the Systems' fiscal years ending March 31, 1988, and 1989, (which otherwise were to have been paid on June 30, 1989, and 1990, respectively) over a 17-year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The Town elected to make the full payment on December 15, 1993, by issuing serial bonds to replace this debt. Pursuant to Chapter 30 of the Laws of 1996, the State Legislature authorized local governments to make available a retirement incentive program with total costs of $9,500 plus interest, of which $1,900 was charged to expenditures/expense in the governmental funds in the current fiscal year. The cost of the programs are billed and paid over five years and began December 15, 1997. Furthermore, another incentive was made available pursuant to Chapter 47 of the Laws of 199B with a total estimated cost of $32,494 plus interest I of which $6,468 was charged to expenditures/expense in the governmental funds in the current year. The cost of the programs are billed and paid over five years and began December 15, 1999. - 9 - DOHERTY, BEALS It BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECI!MI!ER 31, 2001 AND 2000 5. POST RETIREMENT BENEFITS In addition to providing pension benefits, the District provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially, all District employees may become eligible for these benefits if they reach normal retirement age while working for the District. Heath care benefits and survivors' benefits are provided through either an insurance company or a self-funded plan whose premiums are based on the benefits paid during the year. The District recognizes the cost providing benefits by recording its share of insurance premiums or the actual benefits paid from the Special Revenue Fund as expenditure in the year paid. During the year, $107,643 was paid on behalf of 3 retirees and 17 active employees and is recorded as expenditures in the Special Revenue Fund. The cost of providing benefits for retirees is not separable from the cost of providing benefits for active employees. 6. REISSUE The financial statement presentation was changed to reflect the Ferry District's operations as a component unit of The Town of Southold. The original presentation was that of a proprietary fund. - 10 - DOHERTY, BEALS 8< BANKS, P.C.