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." CJ\ Illtl II 0\ 110\ 0\
~r"Im I I I Ir--.......-t No 11 I I I I I No I IN No
II III .. .... .. .. .. ..
~~ MMr-- 0 0 0 0
"'" ..,.~m M M M M
~ m..,. .... ..,. ..,. ..,.
.. .. .... .. .. .. ...
O~ ~N 0\ 0\ 0\ 0\
~0 (I) (/) (I)
'"
NO\ M ....r-- M M
MCIOI IIII N IOril1 IN I III N
~ >..lJlnr"ll 11110\ INr"'-I I 10\ I III 0\
e-oU~O ~~~~ ~' I""'IN ~ ~
~ .~M~ r-- r-- r-- r--
H... In E-<
I>:e-o 0<
e-otJ ..
000 M (/) (I) (I) (I)
HtII 0
Q 0
....e-o'"
:>< Ofil .
I>: fiI....
I>:Z:>::'" ~ ~
~~OO~ No No MOM ....anCJ\ No
~O III!I a)l0\11 11110'\ COIIOIICO I 01""'1 CO 0\
E-Ir:c1e r-I.&Jlnll 1111111 IDitOl 11.0 I \DLnO an N
~~u~~ ~m~gM ~ ~ ~ 0 O~~ ~
~ U ~~CIO CO r-- CO 0 0\ CO
H ~ ~O 111 In In....
Z A " I< ~
tIItJ t)I>o
H ~~ (I) ~ (I) (I)
tilt ~
gj~ 0<
:>::0
~~ \D ..,. 0 .... 0.... \DID 0
1%.0 NIO II1I M MillO I".. 110\0\ M
tJ r-IC)"IIIIN IIII \D \DIIIO 1\0 110\0\ \D
II :S.. .. .. .. .... .. .. ..
~~r-- M CO No 0 No In In CO
UGM 0 M \D M 0\ ........ M
e>M ..,. r-- M M MM r--
Pot)
<II I>: OJ
(/) (I) (I) (I) ~
<::
., OJ <IJ
.: +J ~
" 1M <IJ +J
E .: E-< II OS
s:: OM .j.J H (jJ to .u
10-1 s:: b Q) m tQ
d.I QJ Q) QI +.I
OJ >'<1 E 0 '<1 r;
JJ Om 01 I!I!I s:: OJ m IV >a (t$
s:: mSoo"M ~ OJ .: ~H M E-< ~ ~
G.J OJ "d OJ!:: 0 ...-1
SG.J G.J~ ~ G.J G.JOG.J~ ~ ~ ~ U
~r-i~.QG.J G.J r-i3...-I...-I;j~G.JH ()I tf.I: ~
m.Qm ~ .Q~~~!::mr-i~ !:: "d~
G.J m e 0 "'0 "C m ...-1 m U) 01.Q H -M m G.J II!I .t::
> >..... +J ;:!.: e >. H .-< 0. > ..... !!'. jq " "'" ~~ ~ .;::
~...-I~ _ m ~ mG.J...-I~G.Jr-i~~ mu 'v ~
'..-1 G.J P. m Q) tf.I: p...c:: .Q u ~ .Q ~.!":! ~ !:: ~ ~ ~ ~ 0
u r::= m>, L.o ...... ~m..-4 0-.... ~s::m IJ1 HH .,
"'OG.JSO~ 1J1~ ~ --mo~u"d ~G.Jr-i'.-4 b
':l<o~E .:" ~ ~~+J .-<.:".-<~~ HE"'!~~ ~(JI OJ
m ~DJ;j '.-4S::::! ~~r::=o Cd~m~~ pJJl:!lm"tj~...1I!I Q)
~~~ "d~ HH;jU~ ~~B (JIDJ ~ -~ ~
..c::G.J >~"tjr-i..c:: 0 Q)"tjG.lGJ 0 fI)'tJG.li-OO....
~1I~<lJO ':~U.:l ~~u~~.:~.: E-< ~>.:ADE-< .:I~ 8
~"'+J::>H "'''''' 0< jqjqU::>+JO"" ~.:" 0<
<IIUOA~ ~~~ E-< o<o<~AO~AC> H~ E-< <IJ
tf.I: 0 HH 0 G.J
0< E-< .:1.:1 E-< ~
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
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.