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Home My WebLink About1995 , . I I RECEIVED SEP 9 1996 I SouthoId TOWn CIer/( I I TOWN OF SOUTH OLD I GENERAL PURPOSE FINANCIAL STA TEMENTS December 31. 1995 I I I I I I I 1 I I REHN & FORE, CPA. ."- ., (:12.. J{J)y ~Qy / . . REHN & FORE Certified Puhlic Accountants 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead . New York 11901-3033 . 516/727 -3350 October 3 1, 1996 !vir. Gerald H. Thurman, CPA Executive Director of Auditing Services Suffolk County Dept. of Audit and Control 7900 Veterans Memorial Hwy. Hauppauge, New York 11788 Dear Mr Thurman: Enclosed please find several letters which comply with your request of September 18, 1996, relating to the Town of Southold's financial statement and single audit reports for the years ended December 31, 1994 and December 31, 1995. Please accept our apologies for the delay in getting these corrections to you. If we can be of further assistance, do not hesitate to contact us. S incere!y, ~Y?c>i~ " ~. -, \... . . George R. Rehn, CPA Partner GRR:aj . Enclosures cc: John Cushman, Town of Southold .... , . OCT 02 '96 14:33 SOUTHOLD TOWN ACCOUNTING P.V2 Post-It" Fax Note 7671 COlO/c:7. To . :; . ;&'C:W..J From ~. ~"~,'..:'I~~',;,':-'\ . ~ - r,' @' c""~<r CoJCop,. Co. "D''' ~ "" '0 \"1 m '~\ I'~::""./ ..-...... I Phano .. II \ :...--- ! Pnonoj ~: ,..- ~! .1':: ; FAx; Fa.. . ,-", L. .,.. , , ! '.)-' .... . :~ I ___....J l 10W'1 Oi- SOUi~C~~ \ ACCOUNTiNG & F\NA~CE nEI'1' ..l - OFFICE OF THE COMPTROLLER JOSE"" R. CAPlJ'fO September 18, 1996 COMr'\"'Rou.9 Mr. John Cushman Senior Accountant Town of Southold Accounting and Finance Department P.O. Box 1179 Southold, New York 11971-0959 Dear Mr. Cushman: ... We have recently conducted desk reviews of the Town of Southold's financial statements and single audit reports for the years ended December 31,1994 and December 31,1995. We noted the following deficiencies in the 1994 report which require corrective action: 1. The Schedule of Federal Financial AssisLanCe bas an incorrect CFDA number for tM nutrition program. The number should be 93.045 instead of 13.635. 2. The Auditor's Report on Compliance with the General Requirements was not issued. 3. The Auditor's Report on Internal Can!l'ols does not state the definition of a material weakness and whether material weaknesses were found. 4. The Auditor's Report on Intemal Con!l'ols over Federal financial Assistance Programs does not state the reportable conditions found, and the definition of a matt:rial weakness. This report should also be corrected as to the percentage of total federal assistance expended \1l1der major programs. The percentage should be 93% instead of 100%. We noted the following deficiencies in the 1995 report which require corrective action: DEPARTMENT OF AUDIT AND CONTROL :.'OC~:"....~cs ':~::"~:;::'~RK . 700 '/E.T!;;RANS ~,,1H/IOAIAL I-iIGMW~Y . ?O. SOX 5100 . HAUPPAUGE, N.Y. 117dS-009S -:~..;:?~cr~.: '~~~i;S::>)O'::$i ..-:.:;.,~( ~;:::';..JS:--.1iTTAL ;5"16) 353-;;057 4- - , . OCT 02 '96 14:33 SOUTHOLD TOWN ACCOUNTING P.2/2 ? Town of Southold Page 2 September 18, 1996 1. The twO internal control reports do not state whether material we;:aknesses were, nored. ~, 2. The Schedule ofFedera1 Financial Assistance has an incorrect CFDA number for the nutrition program. The number should be 93.045 instead of13.635. Please contact the CPA firm and request corrective action on these issues and inform US as to when we may expect revised repons. If you have any questions, please;: contact Jean Trentini, Senior Auditor, at 853-5255. Very truly yours, GHT:df b~ Gerald H. Thurman, CPA ..- --_.._~. "Executive'Director of Auaiting Services c: John J. D'Amico, Chief Auditor Jean Trentini, Se;:nior Auditor . . . - REHN & JFORE Certified Public ..'-\ccountants 286 Main Street. East Setauket . New York 11733-2844 . 516/751-3886 . Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 .516/727-3350 August 28, 1996 INDEPENDENT AUDITORS' REPORT ON iNTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENT PERFORMED iN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Town Board Town of South old 53095 Main Road Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 3 I, 1995, and have issued our report thereon dated August 28, 1996. We conducted our audit in accordance with generally accepted auditing standards, Government Auditinl! Standards. issued by the Comptroller General of the United States. These standards require that we plan and pertolm the audit to obtain reasonable assurance about whether the general purpose tinancial statements are free of material misstatement. The management of the Town of South old, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by man.lgemcnt are required to assess the expected benefIts and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss Irom unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to pernlit the preparation of financial statements in accordance with generally accepted accounting principle~_ Because of inherent limitations in any internal control structure, errors or irregularities may ncveJ1hdess occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the etfcctiveness of tht; design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose tinancial statements of the Town of Southold, New York, for the year ended December 31, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed central risk in erd'-'r to d'-'tcnnill'-' our auditing procedures Jor the purpose of expressing our opinion on the general purpose linancial statements and not to provide an opinion on the internal control structure, Accordingly, we cia not express such an opinion. . , . Town Board, Town of Southold August 28, 1996 Page 2. Our consideration of the internal control structure would not necessarily disclose all matters in The internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned tunctions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, the U.S. Depanment of Agriculture, the U.S. Department of Health and Human Services, I-IUD, the U.S. Department of Justice, DOT, FAA, and the SBA. This restriction is not intended to limit the distribution oft/us report which, upon acceptance by the Town of Southoid, is a matter of public record. Respectfully submitted, 7!!eht- & 7rne Rehn & Fore Certified Public Accountants I REJl-IN 8, FO'R''R I'P ~ . ' ... ~ "'.._~. _... . ..s . , . REHN & JFORE Certified Puhlic Accountants 286 Main Street. East Selauket . New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 August 28, 1996 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold 53095 Main Road Southold, New York 11971 We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31,1995, and have issued our report thereon dated August 28, 1996, We conducted our audit in accordance with generally accepted auditing standards; Government Auditin~ Standards. issued by the Comptroller General of the United States; and Onice of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial sTatements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1995, we considered the internal control structure of the Town of South old, in order to determine our auditing procedures for the purpose of "xpressing our opinion on the Town of Southold's general purpose financial statements, with -requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-12S. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal tinancial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpo>c timIDcial statements in a scpam,,: report dated AU\lust 28, 1 <)<)6. . , . Town Board, Town of Southold August 28, 1996 Page 2. The Management of the Town of South old, is responsible for establishing and maintaining an internal control structure. In ful1ilJing this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with. reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization and recorded properly to pennit the preparation of financial statements in accordance with generally accepted accounting principles, and that the federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or [hat the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Cash Receipts, Purchasing, Accounts Payable, Cash Disbursements, Payroll, Property and Equipment, General Ledger, and External Financial Reporting. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1995, the Town of Southold expended 100 percent of its total tederal financial assistance under the following nonmajor federal financial assistance programs: U.S. Ovpnnml!nl0f AMnll'llIure. U,R, DIII'n111118nl AfHellllh & Humnn Se.....illll.. Hue. U,S, Dwpnrtment of Justice, 00,\, FAA, and SllA. . We performed tests of controls, as required by O!v1B Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and ,U110unts claimed or used for mmching that are applicable. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. REHN & FO'P h i"D.:.\ s ....... - ...----. .......... .. .... , ' . Town Board, Town of Southold August 28, 1996 Page 3. Our consideration of the internal control structure policies and procedures used in administering federal awards would not necessarily disclose all matters in the internal control structure that might. constitute material weaknesses under standards established by the American Institute of Cenitied Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relative low level the risk that noncompliance with laws and regulations that would be material to a federal award program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. Tlus report is intended for the information of the audit corrunittee, management, the U.S. Department of Agriculture, the U.S. Department of Health & Human Services, !-!UD, the U.S. Depanment of Justice, DOT, FAA, and SBA. Tlus restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of South old, is a matter of public record. Respectfully submitted, 7<ek- & 7tYte Rehn & Fore Cenified Public Accountants RF:aj , RJEJP1N & FORE. CPA. . ' . ~ . . . ~ ... c: ~ '" .. c: c: ... ;:j ~ '" ~~~9[~ n i '" '" ::: " ~ ~ ~ ~ ~ ~ ~ ~ n i '" n ~ Z ~ '" g- . !i . ~ ,. o 0 ~ ~ ~ ~. c; ;:0 < t ~ :!: j;" .::. ;X ;::; 'i '" ~ . ~ ~ ~ ~ ~ ~ ~ ~ I~ I ~ ." 0 B <'. - ... ] 0\ "< 0'1 "< ~ i:; ~ it ~. C a 8 - '" 6 !: 6 ::0 o' '" ;0 ~ Sf.S~i .:< '" - ~ ~ ~ ~ ~ ~ ~ ~ = .... C 0 Ii' C 0 ~ ~ ~ ~ ;: ~ . w _ 0 ~ ~ ~ ~ '" . '" 9. [ ~ Qq ~ ~ . 7. ... '< n g. -<: ~ 0 ... 0 S '" e ;S'~ .0;:; . 1 Q S' ~ ~ ~~~~~~~~~~~ i W . if ~ a i:> _ _ _ _ _ . ~ o' ~ a : c; -~~-'--" a. 8- ~ ~ ~ ~ ~ ~ ~ - a . 0 ~ ~ w - 0 ~ ~ ~! f p, = o' .. '" ~ '" 1:;] ~ .:I "- ~ c:: ~ g: <I- ;0 ;;j ~ ~ ,.,- s [ '" s: r.f) 0 .... t: '" "' 3. .... ~ .- "'Ii:' ;r ~ o ~to.:f~~_____ 2- 3. < .. ... ~8~wf:~~~\:jo 0- .. a ::j ~f"ot.."o"'~"o"o"o"'a~~ iJ 0 ... ~ r ~ 8 8 ~ 8 8 8 ~ .. '" it '2 .::: '" ~ :. ::z .., g () :g ~ ~ ~ '" F ,.. - '" s: ~ >> >> '" ;; g; , ~ '" p p '" .. W '" '" :!' 0 ;; :;; :... ;.. 0 Co ;., F ... 0 .. ;:; ;;; .. ::: '" ~~ ~ '" '" ~ 0 ." .... '..,. ~ ~ ~ .. ... 0 ~ S 'C 1:: '" ~ '" ~ ;.. ~ '- ... ~ '" ~ ~ g ... W >> '" .. o ~ I't :"11 'J.. ~ ,'" ~ ~ '" >> ~ :: (i:I 0 " w '.. " " '", v. Si;:a f' F "1 ~~ '" .. ;;; '" ~ ~ ::; '" ~ '" ~ ~ ~ ~ ., c _ w ~ ;~ ,; - ~.J: ~ ~ - 1': ... ;~ ~ :;g " ::: = tit r"'J C ".. <'"' r ~.., ~" o - - c:: ... ~ ,; ~ ~ ~ ;;.. !..A ri ~ ~ .. ~ ~ ~ ~ ~ ~ ~ jg '" <J. ~- .... .... - ~ ~ ~ o :i: <'1 ." '" '" ;1>- ... ... g ;i >> ... '" = ... ~ in ~ '" ... ,iZ ;: >> ~ :L: ~ ~ ~ N N ~ N ~ VI-=:: ':-0 >> 1.. "0 ;.. '" v. .... '" '" 0> ~ '" ;:; .. ~ ::; '" '" '" '" '" '" '" '" '" " ;;j8 '" S 51 '" '" ?:\~ " .. '" !2 ." ~~ ia ~ ill ;g 1:3 ~ .:: ~ - ~ , c ;.. .~ , '" ~ '" '" 0> '" .., ;:; b': ~ ::; :;: '" '" '" '" '" '" ~ '" . i I;:; ~ .., ~ ~ ~ ~ ::f ri " " ~ jg jg ~ ~ ~ jg '" .. ;;; ~ J' . REHN & FORE Certified Puhlic Account,mts 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033.516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUlREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thcreon dated August 4, 1995. We have applied procedures to test the Town of Southold's compliance with the following requirements applicable to federal financial assistance progran1s, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31,1994: political activity, Davis- Bacon Act, civil rights, cash management, federalilnancial reports, allowable costs/cost principles, Drug-free Workplace Act, or administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance SupplemeTll jor Single Audils oj Slale and Local Governmenls. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Town of Southold's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Town of Southold had not complied, in all material respects, with those requirements. This report is intended for the information ofthe audit committee, management and others within the Town of Southold and its granting agencies. However, this report is a matter of public record and the distribution is not limited. Respectfully submitted, ~~ & 7fPte. Rehn & Fore Certified Public Accountants --"-'- , ' . . REHN & FORE Certified Public i\..ccountants 286 Main S!reet. Eas! Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead . New York 11901-3033 .516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDiT OF GENERAL PUlU'OSE OR BASIC FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDiTING STANDARDS Town Board Town of South old 53095 Main Road Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. We conducted our audit in accordance with generally accepted auditing standards, Government Auditin!! Standards. issued by the Comptroller General ofthe United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Town of South old, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss trom unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to p~nnit the preparation of tinancial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irre1:,'Ularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the etfectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose' financial statements of the Town of Sou!hold, New York, for the yenr ended D.."..mber J 1, ! 994, we obtnined "n \.Inderstnnding of!he internal control structure. With respect to the internal control structure, we obtained an ,understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financi:1I statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. . . . Town Board, Town of Southold August 4, 1995 Page 2. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, and other within the Town of Southold and its granting agencies. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record. Respectfully submitted, ;eekt, & 7tYte Rehn & Fore Certified Public Accountants REJbIN & FORE, CP As . REHN & FORE Certified PUblic i\.ccountants 286 Main Street. East Set:luket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead . New York 11901-3033 .516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTElUNG FEDEUAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold 53095 Main Road Southold, New York 11971 We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31,1994, and have issued our report thereon dated August 4, 1995. We have also audited the compliance of the Town of Southold with requirements applicable to major tederal tinancial assistance programs and have issued our report hereon dated August 4, 1995. We conducted our audit in accordance with generally accepted auditing standards; Government Auditin!! Standards issued by the Comptroller General of the United States; and Oftice of Management and Budget (OMB) Circular A-128, Audits ofStme and I.ocal Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain rea.sonable assurance about wl1ether the general purpose financial statemcnts are tree of material misstatement, and about whethev 'the Town of Southold complied with laws and regulations, noncompliance which would be material to a major federal financial assistance program. In planning and performing our audit for the year cnded Dccember 31, 1994, we considered the internal control structure ofthc Town of South old, in order to determine our auditing procedures for the purpose of expressing our epinion en the Town of Southold's general purpose financial statements, with requirements applicable to major programs and to report o'n the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of .internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general pllfpOSC tinancial statcments in a separate report dated August 4, ] 995. . . Town Board, Town of Southold August 4, 1995 Page 2. The Management of the Town of South old, is responsible for establishing and maintaining an internal control structure. In fulfUling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation oftinancial statements in accordance with generally accepted accounting principles, and that the federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal tinancial assistance programs in the following categories: Cash Receipts, Purchasing, Accounts Payable, Cash Disbursements, Payroll, Property and Equipment, General Ledger, and External Financial Reponing. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1994, the Town of Southold expended 93 percent of its total federal tinanciul assistance under major federal financial assistance programs, which are identitied in the accompanying Schedule of Federal Financial Assistance. We performed teats of controls. as required by OMB Circular A-128, to evaluate the effectiveness at' tho ,Io.i~n IInd pperlltlan Qf lnlernnl oalllrnl ,U'\IQturo I1QlllliOI 1\0.1 proQlldurOI Ihl\l wo have considered relevant to preventing or detecting materiul noncompliance with specitic requirements, general requirements, tmd requirements governing cluims for adv,mces and reimbursements and <unounts claimed or used for matching that are applicable. Our procedures were less in scope than would be necessary to render an opinion on these internul control structure policies and procedures. Accordingly, we do not express such an opinion. REH:N & FORE, CP As . Town Board, Town of Southold August 4, 1995 Page 3. Our consideration of the internal control structure policies and procedures used in administering federal awards would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relative low level the risk that noncompliance with laws and regulations that would be mnterial to a federal award program may occur and not be detected within a timely period by employees in the normal course of pertorming their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, and others within the Town of Southold and its granting agencies. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record. Respectfully submitted, i€ek, & 7tYte Rehn & Fore Certitied Public Accountants RF:aj 'Q'T;'1-1N Q, '~OR~ CP.c" _...~JJ......." ___ _ ~,.... .. ...03 tj ~I 5: a a a 5: = z ~ S ~ r:; ~ ';! N .. - ,,, ~ '-0 .... -- "" 'C' 0:: ..... M ..,. DC' 0 ~ ; :. ;::. ::. ~ t:: ~ t;; ;::; ~ ~ o '" 7. ~ '" ~ ~ " -i ~ 0\0 '" - ~ \C' g:: ~ WLoJ ..... M ..,. OC' 0 - l- N ...... """. ..... 0. N. eo tn ;:;:J _ De .,. ..... __ '" .~ tI1 Eg ~ t; ~ "J :. :a ~ Ij :;!u .. 1 ~ ~ :;! ~ .... ,c ~ ~ a 5: a a a ~~ '" 0 tj ~I · ;;J ~ ~~~ ~ O:! ",:;J r;::;J;;; ~ D -' "" - ~ o u..,. = ~ 2; ~ ~ ~ . I- ., - z ;:.t ;r: _ - < ;; pc:r:....~ \C' N 00 ,.., ..... n ~ u .'.F} ~" :-; r. .... .,. '" ..... '" >- ::( :r .... ,*".0 !:Eo ~ '" -+- .... .... ..,. - CI.o o tX E r.,;: 0 00 .,." 1'"'1" \0" ...... 0 ~ ri ~ t ~ ~ t:! t;; 5 ~ 3 .~ @ ot:Q Q,," VI "" eo ..... ~ ~ ~ ~ o 0..... OCI \0 \0 ~ -( b;J .....,. 0 ";I I- ....J ~ t( "': C! '"'! ""!. -s (I) 5 .J 4'f' LoJ 0 "'" ~ M 10 'I::' -3 Q ~c:io - 0-. - 011 N :s: .:J '" "'.... ~ . u 1:1:1 QU;i & z ~ ~ z - ~ 1j oooooo~o~"'i ~ W .. M 0 (:) (:) 10 C> NO..... 14 ~ ~ ~qqqqq~q~ x t:: 8 ,g~j'PS!:S!:~::1::::::;;;;::1 ....0 '""" op _____1"'41"'41"'4...... L.. ~ &S:; ..., ...: r- ::i V) '- fI') ~ ~ ~ ~ ~ -!1 ~ c;:' ~.. F. 0 !I'J:;' co ,g C ~ ~ g.... 00 0.. 0 _ N !:i ~ Q. Z tn '" ~ ';I 0 ~ \> 00 00 00 0.. p.. P' "'..... 0 ..., - · "'''0 1..~,:;",:;;;:,:;,:;,,~. ....r, ~ S'"';I Q _............-..__:::~ ;::! -~"'9. J"'''' -~~~~~~~ IZ. ~ ;.> , . _ 0\ JJ o t... v ~''''oO ~ u ~ t '0 ~......... f~ .....0 t--OOcr-.O-Nf"'I-.t ;.... " Q ......... ~ ~ "" i:.) 00 oc 0\ 0.. 0.. 0"> 0.. [ ~ . ~ 0 c ~ S C 0\ 0\ 0\ 0.. 0.. 0.. 0\ 0\ ci -"'2 ~ co"," -gY~I-:-:-:-:-:-:-:-: u ~ . "'.;J '" -~] fi '" 0 .oJ ,~g ~ ~ 5 ~ '> ;;-" ,5 g ::: t5. ;i .~ .Jj g "'.Jj'~ ,<"to;: 1<.> ~~>!>!;~~x ~ ::; z ~u 1!~= 1!oz u ~~x><><S<~x ~ w U) "":if ia tI)-g - " 1&0 :):)0. b.oD..:iLl.. - ~ . . I REHN & FORE I Certified Public Accountants I 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I August 28, 1996 INDEPENDENT AUDITORS' REPORT I Town Board Town of Southold I 53095 Main Road Southold, New York 11971 I Members of the Board: We have audited the accompanying general purpose financial statements of the Town of Southold, I as of and for the year ended December 31, 1995, These general purpose financial statements are the responsibility of the Town of South old's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. I We did not audit the financial statements of Fishers Island Ferry District, which represents 37%, 27%, 32% and 4%, respectively, of the assets and revenues of the special district fund, assets of General I Fixed assets and assets of Long Term Debt. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts I included for Fishers Island Ferry District, is based on the report of the other auditors, We conducted our audit in accordance with generally accepted accounting standards, Those I standards require that we pelform the audit to obtain reasonable assurance about whether the general purpose financial statements are fi-ee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements, I An audit also includes assessing the accounting principles used and significant estimates made by managcment, as well as evaluating the overall general purpose financial statement preparation, Wle belie\'e that our audit provides a reasonable basis for our opinion, I In our opinion, based on our audit and the report of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Town I of South old as of December 31, 1995, and the results of its operations and changes in fund balances for the year then ended in conformity with generally accepted accounting principles, I Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the accompanying table of contents are presented for purposes of I additional analysis and are not a required part of the general purpose financial statements of the Town of Southold, Such information has been subjected to the auditing procedures applied in the audit of general purpose financial statements, and, in our opinion, is fairly presented in all material respects I in relation to the general purpose financial statements taken as a whole, I . . I I Town of Southold I August 28, ] 996 Page 2 I As discussed in Note I (N) to the financial statements, cerain errors resulting in understatement of previously reported assets and liabilities as of December 3], 1995 were discovered by management I during the current year. Accordingly, the 1994 financial statements have been restated to correct the error. I ;1:?ek- & '?~ I Rehn & Fore Certified Public Accountants I I I I I I I I I I I I REHN & FORE, CPA. . . I REHN & JFORE I Certified Public Accountants I 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I August 28, ] 996 I INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL I STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS I Town Board Town of Southold 53095 Main Road I Southold, New York 1] 971 Members of the Board: I We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1995, and have issued our report thereon dated August 28, 1996, I We conducted our audit in accordance with generally accepted auditing standards, Government I Auditing Standards, issued by the Comptroller General of the United States, These standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. I The management of the Town of South old, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are I required to assess the expected benefits and related costs of internal control structure policies and procedures, The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss form unauthorized I use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, I errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and I procedures may deteriorate, J n planning and performing our audit of the general purpose financial statements of the Town of I Southold, New York, for the year ended December 31, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed I in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an I opinion on the internal control structure. Accordingly, we do not express such an opinion, , I I I Town Board, Town of Southold I August 28, 1996 Page 2, I A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relative low level the risk that errors or I irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions, I Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily I disclose all rep0l1able conditions that are also considered to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, the U,S, Department I of Agriculture, the U.S, DepaJ1ment of Health and Human Services, HUD, the U.S Department of Justice, DOT, FAA, and the SBA. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of South old, is a matter of public record. I Respectfully submitted, I ~ek- & '?a-u I Rehn & Fore Certified Public Accountants I I I I I I I REHN & FORE, CP As . . I REHN & FORE I Certified Puhlic Accountants I 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I August 28, 1996 I I INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS I I Town Board Town of Southold I 53095 Main Road Southold, New York 11971 I We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31,1995, and have issued our report thereon dated August 28, ] 996, I We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A- ]28, Audits of State and Local Governments. Those I standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. I In planning and performing our audit for the year ended December 31, 1995, we considered the internal control stllJcture of the Town of Southold, in order to determine our auditing procedures for the purpose of expressing our opinion on the Town of Southold's general purpose financial I statements, with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of I internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs, We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated I August 28, 1996, I I I . . I I Town Board, Town of Southold August 28, 1996 I Page 2. I I The Management of the Town of South old, is responsible for estabtishing and maintaining an internal control structure, In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and I procedures, The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization I and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that the federal financial assistance programs are managed in compliance with applicable laws and regulations, Because of inherent limitations in any internal I control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected, Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the I effectiveness of the design and operation of policies and procedures may deteriorate, I For the purpose of this report, we have classified the significant internal control structme policies and procedures used in administering federal fmancial assistance programs in the following categories: Cash Receipts, Purchasing, Accounts Payable, Cash Disbursements, Payroll, Property and Equipment, I General Ledger, and External Financial Reporting, For all of the internal control structure categories listed above, we obtained an understanding of the I design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk, I During the year ended December 31, 1995, the Town of Southold expended 100 percent of its total federal financial assistance under the following nonmajor federal financial assistance programs U S Department of Agriculture, US, Department of Health & Human Services. HUD, US Department I ofJustice, DOT, FAA, and SBA. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness I of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and I amounts claimed or used for matching that are applicable, Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures, Accordingly, we do not express such an opinion, I I . REHN & FORE, CP As I . . I I Town Board, Town of Southold I August 28, 1996 Page 3. I I A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance I program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable I conditions that are also considered to be material weaknesses as defined above, This rep0l1 is intended for the information of the audit committee, management, the U. S, Depm1ment I of Agriculture, the US Department of Health & Human Services, HUD, the US, Depal1ment of .Justice, DOT, FAA, and SBA. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record, I Respectfully submitted, I i!:ek- & ?~ I Rehn & Fore Certified Public Accountants I RFai I I I I I I REHN & FORE, CPAs . . I REHN & FORE I Certified Public Accountants I 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I August 28 1996 I INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORl\1ED IN I ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Town Board I T own of Southold 53095 Main Road Southold, New York] 197] I Members of the Board: I We have audited the general purpose tinancial statements of the Town of South old, New York, as of and for the year ended December 31, 1995, and have issued our report thereon dated August 28, 1996, I We conducted our audit in accordance with generally accepted accounting standards and Government Allditing Standards, issued by the Comptroller General of the United States, Those standards require I that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. I Compliance with laws, regulations, contracts, and grants applicable to the Town of Southold, New York, is the responsibility of the Town of Southold, New York's management. As part of obtaining reasonable assurance about whether the financial statements are tree of material misstatement, we I performed tests of the Town of Southold, New York's compliance with certain provisions oflaws, regulations, contracts, and grants, However, the objective of our audit of the general purpose I financial statements was not to provide an opinion on overall compliance with such provisions Accordingly, we do not express such an opinion, I The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Allditing Standard" I This report is intended for the information of the audit committee, management and the US, Department of Agriculture, the U,S, DepaJ1ment of Health and Human Services, HUD, U,S. Depal1ment ofJustice, DOT, FAA, and the SBA However, this report is a matter of public record I and its distribution is not limited, I ~~ & ?(VU. Rehn & Fore Certified Public Accountants I , . I REHN & FORE I Certified Public Accountants I 286 Main Street. East Setauket. New York 11733-2844' 516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I August 28, ] 996 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL I REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS I Town Board Town of South old 53095 Main Road I Southold, New York] 1971 Members of the Board: I We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 3 1, ] 995, and have issued our report thereon dated August 28, 1996, I We have applied procedures to test the Town of Southold's compliance with the following requirements applicable to federal financial assistance programs, which are identified in the Schedule I of Federal Financial Assistance, for the year ended December 3], 1995 political activity, Davis- Bacon Act, civil rights, cash management, federal financial reports, allowable costs/cost principles, I Drug-fyee Workplace Act, or administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and I Budget's COII/pliancc Supplclllcnt for Singlc Audits of Statc and Local Govcl'/lll/cnts, Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Town of Southold's compliance with the requirements listed in the preceding I paragraph, Accordingly, we do not express such an opinion, With respect to the items tested, the results of those procedures disclosed no material instances of I noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Town of Southold had not complied, in alllnaterial respects, with those requirements, I This rep0I1 is intended for the information of the audit committee, management and the U.S, Department of Agriculture, the US Department of Health and Human Services, BUD, the US I Depm1ment of Justice, DOT, FAA. and the SBA. Respectfully submitted, I i€ekt & 7o~ I Rchn & Fore Certified Public Accountants I , . . I REHN & FORE I Certified Puhlic Accountants I 286 Main Street. East Setauket. New York 11733-2844. 516n51-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC I REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS I August 28, 1996 I Town Board I Town of Southold 53095 Main Road Southold, New York 1] 971 I Members of the Board: I We have audited the general purpose financial statements of the Town of Southold, New York, as of and for the year ended December 31, 1995, and have issued our rep0l1 thereon dated August 28, I 1996, In connection with our audit of the general purpose financial statements of the Town of Southold and I with our consideration of the Town of Southold's control structure used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A-128, A IIdits of Stote and LOGol Governments, we selected certain transactions applicable to certain I nonmajor federal financial assistance program for the year ended December 31, 1995, As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed: eligibility; and special tests and I provisions (if any) that are applicable to thuse transactions, Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Town of Southold's compliance with these requiremcnts. Accordingly, we do not express such an opinion, I With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed ;in the preceding paragraph With respect to items not I tested, nothing came to our attention that caused us to believe that the Town of Southold had not complied, in all material respects, with those requirements, I I I . . I I Town of Southold August 28, 1996 I Page 2. I I This report is intended for the information of the audit committee, management, the Department of I Agriculture, the Depm1ment of Health and Human Services, HUD, the U.S, Department of Justice, DOT, FAA, and the SBA However, this report is a matter of public record and its distribution is not limited, I Respectfully submitted, I ;::~ & '?fVte I Rel111 & Fore Certified Public Accountants I RF<lj I I I I I I I I I REHN & FORE, CPAs ----.. . I & I REHN FORE Certified Public Accountants I 286 Main Street. East Setauket. New York 11733-2844.516/751-3886. Fax 516/751-2740 433 Pulaski Street. Riverhead. New York 11901-3033 . 516/727-3350 I I August 28, 1996 I INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE I Town Board Town of Southold 53095 Main Road I Southold, New York 11971 I Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the I year ended December 3], 1995, and have issued our report thereon dated August 28, 1996. These general purpose financial statements are the responsibility of the Town of South oJ d's management. Our responsibility is to express an opinion on these general purpose financial statements based on our I audit. We conducted our audit in accordance with generally accepted accounting standards, Government I Auditin!! Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-] 28, "Audits of State and Local Governments," Those standards and OMB Circular A-] 28 require that we plan and perform the audit to obtain reasonable I assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements, An audit also includes assessing the accounting principles used I and significant estimates made by management, as well as evaluating the overall general purpose financial statement preparation, We believe that our audit provides a reasonable basis for our opinion, I Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements, taken as a whole, The accompanying schedule of federal Jinance assistance is presented I for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of general purpose financial statements, and, in our opinion, is fairly presented in all I ,material respects in relation to the general purpose financial statements taken as a whole, 7<ek- & '?O-'te- I Rehn & Fore I Certified Public Accountants . . I I TOWN OF SOUTHOLD I TABLE OF CONTENTS December 31.1995 I STATEMENTS Combined Balance Sheet - All Fund I Types and Account Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-2 Combined Statement of Revenues, Expenditures and I Changes in Fund Balance - Governmental Fund Types. . . . . . . . . . . . . . . .. 3-4 Combined Statement of Revenues, Expenditures and Changes in I Fund Balance - Budget and Actual- All Governmental Fund Types. . . ',' .. 5-6 I Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: I All General Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 All Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Capital and Special District Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 I Combining Balance Sheets: I Special Revenue Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . 10 Special District Funds. . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12 Fiduciary Funds. . . . . . . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . . . . . . 13 I Combined Statement of Revenues, Expenditures and Changes in Fund Balance: I Special Revenue Funds. . . . , , . . . . . . . . . . . . . , , . . . . . . . . . . . . . . . 14 Special District Funds. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15-16 I SCHEDULES I Schedule of Federal Financial Assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Schedule of Obligations Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 I Notes to the Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19-34 I I I - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD . COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS - Pagel on Dettmber 31.1995 ------GOVERNMENTAL FUND TYPES FIDUCIARY -ACCOUNT GROUPS- MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TRUST '" GENERAL LONG TERM TOTALS GENERAL REVENUE PROJECI'S DISTRICTS AGENCY FIXED ASSET !m!!I ~ 12131/94 ASSETS Cash $1,548,635 $1,648,360 $2,981,864 $I,657,4Q2 $234.123 $8,070,384 $5,291,975 ft~~---1iZ Receivable $12,821 12,821 630 Due From Other Funds 714 53,220 25,000 39,413 118,347 93,072 Due ftom Other Governments 257,413 10,926 268,339 323,367 State and Federal Receivables 53,598 ' 4Q,266 93,864 146,831 Account.s Receivable 17,126 28,144 146,296 191.566 244,884 Other Receivables 16,053 16.053 14,090 Supply Invenlory 203 203 369 Defcn-ed Expense 24,949 60 25,009 80,409 Defcn-ed Compensation _ 631,187 631,187 304,536 Land $4,159,281 4,159,281 4,159.281 Buildings 6,739,773 6,739,773 6,697.747 Equipment and Machinery 11,803,290 11,803.290 11,495.547 Provisions to be Made in Future Budgets $10,315.886 10,315,886 9,147,612 TOTAL ASSETS $1,915.459 $1,780,916 $3,006,864 $1,843,171 $881.363 $22,702,344 $10,315,886 $42,446,003 $38.000,350 LIABILITIES AND FUND BALANCE LIABILITIES ~ Payable $326,117 $309,545 $1.518 $292,643 $929,823 $800,618 A=ued Liabilities 0 $2,036 Due 10 Other Funds 53,220 666 $64,461 118,347 93,072 Due to Other Govemments 1,105 329 1,434 1,837 Defcn-ed Compensation 631,187 631,187 304,536 Defcn-ed RevalUes 10,205 10.205 39,746 Depooits Held 21,732 185,715 207,447 208,159 Compensated Aboences $2,240,886 2,240,886 2,077,612 Due to New Yark State DEe 450,000 450,000 650,000 Obligations Payable 1,111,210 7,625,000 8,736,210 7,138,000 TOTAL LIABILITIES $327,222 $372,970 $1,134,460 $293,638 $881,363 $0 $10,315,886 $13,325,539 $11,315,616 Con1inued Page 1 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS - POCe 2 on December 31. 1995 ----GOVERNMENTAL FUND TYPES FIDUCIARY -ACCOUNT GROUPS- MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TRUST " GENERAL WNGTERM TOTALS GENERAL REVENUE PROJECTS DISTRICTS AGENCY FIXED ASSET !m!!! ~ ~ TOTAL LlABILtTIES - from Poce. $327,222 ' $372,970 SI,134,460 S293,638 S881,363 $0 S10,315.886 S13,325.539 S1I,315,616 FUND BALANCE Investment in Fixed Assets S22,702.344 S22,702,344 S22,352,575 Reserve for Bonded Debt $4,369 4,369 19,184 Appropriated Ensuing Y.... Budget $767,274 S588,175 S2,622,598 241,939 4,219,986 3,973,4S8 Unreservcd.Unapproprialed 820,963 819,771 1,303,225 2,943,959 2,843,256 Fund Deficit (750,194) (750,194) (2,503,739) TOTAL FUND BALANCE SI.588,237 SI,407,946 S1,872,404 S1,549,533 SO 822,702,344 $0 829,120,464 $26,684,734 TOTAL LIABILITIES AND FUND BALANCE 81.915,459 81,780,916 83,006,864 81,843,171 8881,363 822,702,344 810,315,886 $42.446,003 838,000,350 NOTES TOTIJE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF TillS STATEMENT Page 2 - - - - - - - - - - - - - - - - - - - TOWN OF SOUTHOLD . COMBtNED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNEMENTAL FUND TYPES - Pagel on . Jouarv 1 - December 31.1995 MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TOTALS GENERAL REVENUE PROJECTS DtSTRICfS ~ ~ REVENUES Real Property Taxes $8,679,194 $2,682,033 $2,114,300 $13,475,527 $12,452,255 Real Property Taxi"'" 61,166 10,392 747 72,305 64.993 Noo-property Taxi"'" 210,968 59,171 61,300 33t,439 315,108 Depanmemal- 230,287 303,587 2,605,025 3.138,899 3,241.122 lntergov.....-.! Charges 167, loW 19,544 44,737 23t,421 248,172 Use ofMooey & Property 499,586 165,260 $84,054 127,498 876,398 612,303 Licenses & Permits 149,479 5,400 154,879 160,997 Fines " Forfeitures 69,738 69,738 77,805 Property SaleslLoss Compensation 25,675 35,624 60.000 194,283 315,582 45,897 Miscellaneous Local Sources 53,986 160,651 23,208 237,845 329,353 State Aid 471,669 284,283 42,811 56,485 855,248 1,464,145 Federal Aid 138,207 111,246 18,656 268,109 1,637.006 Obligations Authorized 1,750,000 1.750,000 1nterfimd Transfen 692,936 25,000 717,936 880.957 N_ Redeemed ftom Approprill1ions 165,809 165,809 67,511 TOTAL REVENUES $10,757,095 $4,530,127 $2,127,674 $5,246,239 $22,661,135 $21,597,624 EXPENDITURES Gcncral Government SuppM $2,loW,777 $159,884 $328,673 $93,219 $2,722,553 $2,415,114 Public Safety 4,023,669 189,995 168.oW8 4.382,072 4,184,558 Public Health 39.879 3,500 44.073 87,452 116,023 Transportation 314,300 2,283,224 3,488 874.945 3,475.957 5,056,482 Economic ABsisIance & Opportunity 536,480 536,480 489,980 Cu1ture& Recreation 376,698 oW8,337 785,035 602,201 Home & Community Services 197.912 422,684 553,805 2,803,771 3,978,172 3,883.497 Employ... Benefits 1,196.106 1,292,714 266.319 2,755.139 2.611,235 Debt Service 848,195 81,491 60,273 144.419 1,134.378 1,135,521 1nterfimd Transfen 391,846 266,170 59.920 717.936 880.957 TOTAL EXPENDITURES $10,065.862 $4,699,662 $946,239 $4,863.411 $20,575,174 $21,375,568 Continued Pago 3 I - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE . GOVERNEMENT AL FUND TYPES - Pac. 2 or 2 Januarv 1 - Duember 31. 1995 MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TOTALS GENERAL REVENUE PRO.JEcrS DISTRIct'S 12131/95 12131/94 TOTAL REVENUES Irom Pal' 3 $10,7S7,09' $4.'30,127 82,127.674 8',246,239 $22,661,13' $21,'97.624 TOTAL EXPENDITUES from Pac. 3 810,06',862 $4,699,662 $946,239 $4,863,411 $20,'7',174 $21,37','68 EXCESS REVENUE OVER (UNDER) EXPENDITURES 691,233 (169,'3') 1,181,43' 382,828 2,08',961 222.0'6 FUND BALANCE - JANUARY I, 1995 8897,004 $1,'77,481 $690,969 $1.166,70' $4,332,1'9 $4,110,103 FUND BALANCE - DECEMBER 31,1995 $1,'88,237 $1,407,946 $1,872,404 $1,'49,'33 $6,418,120 $4,332,1 '9 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF TInS STATEMENT Page 4 - - - - - - - - - - - - - - - - ------- ---..- ----- --..---- -- ----- ----- TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND &\LANCE BUDGET AND ACTUAL - ALL GOVERNEMENTAL FUND TYPES - Pac. 1 on Januarv 1. December 31. 1995 SPECIAL CAPITAL SPECIAL TOTAL GENERAL REVENUE PROJECTS DISTRICTS BUDGETS ACTUAL VARIANCE REVENUES Real Property Taxes $8,679,194 $2,682,033 $2,114.250 $13,475,477 $13,475,527 $50 Real Property Tax Items 54,300 9,800 100 64,200 72,305 8,105 NOD..propetty Tax Items 195,000 63,000 62,000 320,000 331,439 11,439 Departmenul1ncome 243,900 300,500 2,807,700 3,352,100 3,138,899 (213,201) 1mergovemmentaJ Charges 167.352 52,500 219,852 231,421 11.569 Use ofMonoy & Property 437,734 88,000 $35.522 37,100 598,356 876,398 278,042 Licenses &, Pennits 165,400 4,400 169,800 154,879 (14,921) Fines & ForfeitUres 76,000 76,000 69,738 (6,262) Property SaleslLoss ~i"" 26,468 5,000 78,500 109,968 315,582 205,614 MisceUancoUl Local Sources 40,662 135,900 30,000 4,600 211,162 237,845 26,683 Stale Aid 523,179 334,168 857,347 855,248 (2,099) Federal Aid 119,678 309,634 429,312 268,109 (161,203) Obligations Authorized 3,079,448 3,079,448 1,750.000 (1,329,448) Notes Rodeemed ftom Appropriations 165.809 165,809 lnU:rfund T.....r... 906.000 906,000 717,936 (188,064) TOTAL REVENUES $10,728,867 $4,838.435 $3,144.970 $5,156,750 $23,869,022 $22,661,135 ($1,207,887) AppropriaIed Fund Balance 201.000 542,181 765.969 251,595 1,760,745 TOTAL REVENUES AND OTHER SOURCES $10,929,867 $5,380,616 $3,910.939 $5,408.345 $25,629,767 Continued Page 5 - - - - - - - - - - - - - - - - - - - . . ~ ~ ~ &J t:J '" '" en 6J~!=~~:,<~~~e; oj f ~ f i f I i r ! ! r~ ~ ~ ~ " " en ~ ~ e; ~ ~ oj ~ - ~ ~ 0 e ~ ~ 9 ~ '" ~ en~ SInn" ~ ~. ~-~= ~ 2~ ill .. .. ~ ~ I ~ ~ ~ ~ f ~ ~ ~ ~ ~ ~ ~ ~ [ ~~~I ~~~~ I ~ en " ~ l g ~ g ~ ~ ~ ~ ~ < en ~ oj ~ t:J a - 8 ~ ;p ~ [ti~j"r~~r ~ 0 ~ ~~ .citg 51 &J ~ 6. ~ $i! i.!' ~ 8 g !!. 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'" '" '" ~ '2 ~ 1 t > 8 ~ z z '" '" ~ '" '" Q ~ ~ ~ '" ~ :z: B " r' ~ '" ~ z '" ... - " '" ~ .... r' ~ ~ [S ... > '" ~ - ~ q: .... ~ '" ~ ~ ::; ~ ~ 0 ~ - ~ ~ ~ '" r ~ ::; ~ ? ~ ~ ; [S " ~ II' .. ~ ~ ~ " ; ~ ~ ~ .. ~ .. .. r n 8 8 b ~ ~ -.., .. ~ u. ~ 1.> w t.. 0'0 v- .... IV 1.> ~ ;., ~ ... ... - ... '" ~ ~ ~ '" ~ ... -.I .. " o OCI \D IV W \0 W " .. ... ... ... " o '" " '" ~ .-.1 t 0 -...I ...... .... ..... 0 W W -...I 0 !" " ~ .. VI VI "'" 00 o W \0 IV 1.> .. '" ".,:..Q..Nic'o\ov.Oo '" :;;; t'; "8eJ;:8'g~o v.~"oo"o .... 0 " " a; VI \0 VI ".. .... VI 00 .- a; g 8:: .. 0 - .::: .. .... ..... 00 0"1 0 -..I VI - ~ .co. OCI 0 0 8 ~ ~ ~ 0 Q ~ ~ ... r r 5J ~ ~ ~ - .., - ~ n ~ u. a; '" IV t.,)"",\.J U. CJ'o .... IV .... .... 1M 0.- ~ ai f,;J -.I '" 0'. 00 \0 to.J 00 " ~ ... \0 .... 00 0"1 W CJ'o"" 0 VI .... 00 .-.1 -.I '" '" 0'\ .... IV IV W W \0 \0 P IV .... .. 0 VI VI VI \0 W \0 0 W ; '" .. u. ~ ___.'"...J"eJ.,'Nv.ic"oo ~~tt~~~~V.~~~8 .... '" ;::; .. " ... z ~ . ~ ~ 8 ~ ~ :. '" - ~ .., -.I 0"1 0'\ W .... "'" 0 0 t ..... .... IV W I:! I ~ ~ ~ ~ ~ .. .. .. ....~ ~ ~~~ ~~ ... ~~~::Jt!Mt.It~f:!- " 0 0 :-"~.OC~VI~...,J r~w.."", " ww..oo~\O.....o.:-..:j:-c.. ,.t:t.. &J '" IV IV VI N 0'1 VI \0 1.> ~ w 00 -..I CJ'o g IV VI 0 00 VI ~ ~ :5 ~ ~ ~ ~ ~ ~ 0 00 00 VI).J 0'\ t co a-J \0 ~ .. ~ A 00 VI ...... 0 ..... \0 IV '-' '-' - '-' - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINED BALANCE SHEET SPECIAL REVENUE FUNDS . December 31.1995 GENERAL -HtGHWAYFUNDS-- SPECIAL RISK MEMORANDUM ONLY FUND GRANT RETENTION TOTALS PART TOWN TOWNWIDE PART TOWN FUND Em!!! ~ ~ ASSETS Cash $301,741 $291,514 $617,843 $437,262 $1,648,360 $1,781,470 Due From Other Funds 53,220 53,220 178 Due ftom Other OOv......... $10,926 10,926 16.181 State and Federal Receivables 38,148 2.118 40,266 AocowIIs Receivable 26,217 442 1,485 28.144 30,252 Defemo! E><peooe 22,272 TOTAL ASSETS $327,958 $330,104 $674,666 $10,926 $437,262 $1,780,916 $1,850.353 LIABILITIES AND FUND BALANCE LIABILITIES AocowIIs Payable $67,820 $58,545 $14,421 $10,926 $157,833 $309,545 $236.712 Due to Other Funds 51,102 2,118 53,220 29,612 Deferred hvenues 10,205 10,205 6,548 TOTAL LIABILITIES $67,820 $109,647 $16.539 $10.926 $168,038 $372,970 $272,872 FUND BALANCE Reserve for Booded Debt Unreserved-Appropriated $138,453 $137,267 $312,455 $588,175 $416,000 Unreserved-Uoappropria!ed 121,685 83,190 345,672 $269,224 819,771 $1,161,481 TOTAL FUND BALANCE $260,138 $220,457 $658,127 $0 $269,224 $1,407,946 $1,577,481 TOTAL LIABILITIES AND FUND BALANCE $327,958 $330,104 $674.666 $10,926 $437.262 $1.780,916 $1,850,353 NOTES TO TIiE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 10 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINED BALANCE SHEET SPECIAL DISTRICf FUNDS - POle I on December 31.199!i WEST CREEK SOUTHOLD SHORECREST EAST-WEST FIRE WEST SOUTHOLD FISHERS SOLID WASTE FISHERS ISLAND IMPROVEMENT SHORES IMP. IMPROVEMENT PROTECTION GREENPORT WASTEWATER ISLAND SEWER MANAGEMENT REFUSE AND DISTRICf DISTRICf DISTRICf DISTRICf WATERDIST. DISTRICf DISTRICf DISTRICf GARBAGE DIST. ASSETS Cash $43 51,971 52,398 577,213 $427,807 529,989 539,387 5293.347 1'- -Pftht Receivable Due From other Fuods State one! Fedenl Ra:civabl.. Aocounts Roceivable 2,832 7,307 134,304 Deferred E_ 60 TOTAL ASSETS $43 51,971 52,398 577,2t3 $0 $430,639 $37,496 5193,93t 5293,347 LIABILITIES AND FUND BALANCE LIABILITIES Aocounts Payable 573,079 53,288 5323 5131,002 51,399 Aoaued Liabiliti.. Due To other F\mds 666 Due to Other Govemments TOTAL LIABILITIES $0 573,079 $0 53,934 5323 5131,002 51,399 FUND BALANCE Reserve For Bonded Debt 51,971 52,398 AppropriaIed $42 52,400 5117,000 $42,802 Unappropriated 1 1,734 307,683 536,973 147 5292,148 TOTAL FUND BALANCE $43 51,971 52,398 $4,134 $0 $424,683 $36,973 $42,949 5292.148 TOTAL LIABILITIES AND FUND BALANCE $43 51,971 52,398 577.213 $0 $430,639 $37,496 5193,931 5293,347 Cootinued Pagall - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBtNED BALANCE SHEET , SPECIAL DISTRICT FUNDS - Pale 2 of2 December 31.1995 FISHERS CUTCHOGUE- SOUTHOLD ORlENT- MATTITUCK ORIENT MEMORANDUM ONLY tSLAND FERRY NEW SUFFOLK PARK EAST MARION PARK MOSQUITO TOTALS DISTRICT PARK DISTRICT DISTRICT PARK DISTRICT DISTRICT DISTRICT 12/31195 llLlli2f ASSETS Cash $647,8SS S2S,133 $22,6SS $3S,460 SlO,S48 $23,196 SI,6S7,402 SI,208.218 .1>....._ nW'!Ots Receivable 630 Due From Other Funds 39,413 39,413 S8,487 State and Fedcnl Receivables 114,179 Aocoums Receivable 1,6S3 146,296 201.809 DcfetTcd Expenoc 60 2,499 TOTAL ASSETS $687,268 $2S,133 $22,6SS $3S,460 S12,201 $23,196 SI.843,171 SI.S8S.822 LIABILITIES AND FUND BALANCE LIABILITiES Accounts Payable SSS,ISI S1,230 S2,963 S2.008 S292,643 $416,267 A=oed Liabilities 2,036 Due To Other Funds 666 482 Due to Other Govemmenta 329 329 332 TOTAL LIABILITiES SSS,1S1 $0 SI.230 S2.963 S2,337 $0 S293.638 $419,117 FUND BALANCE Reserve For Bonded Debt S4,369 SI9,184 Appropriatod S73,69S $6,000 241,939 161,7S0 Unappropriatod SS8,422 S2S.133 $21,42S $32,497 3,864 S23,I96 1,303,22S 98S,771 TOTAL FUND BALANCE $632,117 $2S.133 $21,42S $32,497 S9,864 $23,196 SI,S49,S33 SI.166,70S TOTAL LIABILITiES AND FUND BALANCE $687.268 $2S.133 $22,6SS $3S,460 S12,201 $23,196 SI,843,171 SI.S8S,822 NOTES TO mE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF TIllS STATEMENT Page 12 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINING BALANCE SHEET FIDUCIARY FUNDS December 31.1995 -AGENCY" TRUST- MEMORANDUM ONLY FtSHERS ISLAND TOTALS ~ FERRY DISTRIct' 12/31/95 ~ ASSETS Cash $178,878 $55,245 $234.123 $252,686 Due From Other Funds 482 Other Receivables 16,053 16,053 14.090 Defemd Compensation Assets 574,63 [ 56,556 631,187 304.536 TOTAL ASSETS $753,509 $127.854 $881,363 $571,794 LIABILITIES AND FUND BALANCE LIABILITIES Due to Other Funds $25,048 $39,413 $64,461 $58,532 Due to State" Federal 00_ 567 Defemd Compensation 574,631 56,556 63[,187 304,536 Deposits He[d [53,830 31.885 185,715 208,159 TOTAL LIABILITIES $753.509 $127,854 $881,363 $571,794 TOTAL FUND BALANCE $0 $0 $0 $0 TOTAL LIABILITIES AND FUND BALANCE $753.509 $127.854 $881,363 $571,794 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF 11IIS STATEMENT Page 13 - - - - - - - - - -- - - - - - - - - TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE . SPECIAL REVENUE FUNDS Januanr 1 - December 31. 1995 GENERAL -WGHWAY FUNDS-- SPECIAL RISK MEMORANDUM ONLY FUND GRANT RETENTION TOTALS PART TOWN TOWNWIDE PART TOWN FUNDS f!!!m ~ ~ REVENUES Real Property Taxes $252,233 $1,031,100 $1,398,700 $2,682,033 $6,963,223 Real Property Tax 1..... 1,828 3,500 5,064 10,392 21,936 Non-property Tax Items 59,171 59,171 224,121 Departmental1ncomc 303,587 303,587 317,939 intA:c80vemmeota1 Charges 19,544 19,544 71,505 Use of Money &; Property 16,981 39,014 78,961 $30,304 165.260 182,449 U"""'" &; Permits 5,400 5,400 17,000 Property SalellLoss CoInJ-'...tion 35,624 35.624 26,956 Miscellaneous Loc;:a1 Sources 51,233 17,005 35,309 57,104 160.651 126,434 S1ate Aid 66,548 38,148 179,587 284,283 274,907 Fedenl Aid $111,246 111,246 317,741 Int.erfund Tnnsf... 692,936 692.936 877.481 TOTAL REVENUES $812,149 $1,128,767 $1,697,621 $111,246 $780,344 $4,530.127 $9,421,692 EXPENDITURES General Government Support $73,619 $86,265 $159.884 $223,202 Public Safety 189,995 189,995 3.844,276 Public Hoa1th 3,500 3,500 3.291 Transportation $794,710 $1,488,514 2,283,224 2.249,598 Home & Community Services 311,438 $111,246 422,684 547,95 t Employ... Benefits 60,628 80,583 180,157 971,346 1,292,714 2,087,411 DebtSeMce 6,391 65,393 9,707 81,491 122,394 Int.erfund Tnnsf... 68,053 42,086 156,031 266,170 443,258 TOTALEXPENDtTURES $713,624 $982,772 $1.834,409 $111,246 $1,057.611 $4,699.662 $9,521,381 EXCESS REVENUE OVER (UNDER) EXPENDITURES $98,525 $145,995 ($136,788) $0 ($277,267) ($169,535) ($99,689) FUND BALANCE - JANUARY 1, 1995 $161.613 $74,462 $794,915 $0 $546,491 1,577.481 $1,677,170 FUND BALANCE - DECEMBER 31, 1995 $260.138 8220,457 $658,127 $0 8269,224 $1,407,946 $1,577,48t NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 14 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL DISTRICT FUNDS - Page I ofZ . JANUARY I - DECEMBER 3t. t995 WEST CREEK SOUTHOLD SHORECREST EAST-WESTFtRE WEST SOUTHOLD FISHERS SOLID FISHERS ISLAND IMPROVEMENT SHORES IMP, IMPROVEMENT PROTECTION GREENPORT WASTEWATER ISLAND SEWER WASTE REFUSE AND DISTRICT DISTRICT DISTRICT DtSTRICT WATER DlST, DISTRICT DISTRICT DISTRICT GARBAGE DlST. REVENUES Real Property Taxes $8,755 $7,450 $13,700 $228,570 $0 $193,900 $754,665 $335,500 Real Property Tax Items 4 4 6 107 90 351 N""1'f'OPCIIY Tax Items 61,300 DepaJ1mcnIal- 78,657 $18,067 1,417,991 12,132 IDtergovOltl1JX:t1!81 Charges 28,800 Use of Money and Property 21 1,116 848 6,197 26,310 2,512 20,497 17,567 Property SaJesII...o68 ~4I:IItiOJl 194,283 M;scellaneous Loca1 Soun:es 12,131 SIaIeAid Federal Aid TOTAL REVENUES $8,780 $8,570 $14,554 $234,874 $0 $327,757 $20,579 $2,461,218 $365,199 EXPENDITURES Geoeral Government Support $666 $1.427 Public Safely $168.408 Public Health Tnmsportation $9 $76 Culture and Recreation Home and Conununity Service 232,305 $30,628 2,277,510 $251,240 Employee Bendils 73,079 66,842 Debt Service $8,255 21,976 15,878 3,750 Imemmd Transfen 59,920 TOTAL EXPENDITURES $8,255 $21,985 $15,954 $241,487 $0 $236.721 $30,628 $2,405,699 $251,240 EXCESS REVENliEOVER (UNDER) EXPENDITURES $525 ($13,415) ($1,400) ($6,613) $0 $91,036 ($10,049) $55,519 $113,959 RESIDUAL EQUITY TRANSFER $0 FUND BALANCE - JANUARY 1,1995 ($482) $15,386 $3,798 $10.747 $0 $333,649 $47,022 ($12.570) $178,189 FUND BALANCE - DECEMBER 31, 1995 $43 $1,971 $2,398 $4.134 $0 $424,685 $36,973 $42.949 $292,148 NOTES TO TIIE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 15 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL DISTRICT FUNDS - Page 2 of2 . JANUARY 1- DECEMBER 31.1995 FISHERS CUTCHOGUE- SOUTHOLD ORIENT- MATTtTUCK ORIENT MEMORANDUM ONLY ISLAND FERRY NEW SUFFOLK PARK EAST MARION PARK MOSQUITO TOTALS DISTRICT PARK DISTRICT DISTRICT PARK DISTRICT DtSTRICT DISTRICT 12131/95 ~ REVENUES Real Property T""", $200,000 $50,000 $107,050 $16,000 $168,710 $30,000 $2,114,300 $1,875,804 Real Property Tax Items 93 78 14 747 1,084 Non-pn>petIy Tax Items 61,300 90,987 Departmeu1a1 Income 1,077,597 581 2,605,025 2,812,745 Inlergovemmenlal Charges 15,937 44,737 44,203 Use ofMooey and Property 30,771 979 12,635 892 5,762 1.391 127,498 68,367 Property SaleoILoss Compeosatioo 194.283 17.492 Miscellaneous LocaJ Sourocs 1,360 174 9,543 23.208 163,868 Stale Aid 56,485 56,485 68.912 Federal Aid 18,656 18,656 1,205.206 TOTAL REVENUES $1,399.539 $52,339 $119,859 $16.892 $184,093 $31,986 $5.246,239 $6,348,668 . EXPENDITURES General Govcmmem SuppM $91,126 $93,219 $123,218 Public Safety 168,408 159,160 Public Health $44,073 44,073 33,168 Transporta1ioo 874,860 874,945 2,260,953 Culture and _00 $54,141 $131.528 $23,847 $198.821 408,337 377,032 Home and Cammunity Service 12,088 2,803,771 2,755,988 Employee Benefits 126,398 266,319 264,380 Debt Service 94,560 t44,419 111,078 Jnterfimd Tranaf... 59,920 78,912 TOTAL EXPENDITURES $1,199,032 $54,141 $131,528 $23,847 $198,821 $44,073 $4,863,411 $6,163,889 EXCESS REVENUE OVER (UNDER) EXPENDITURES $200,507 ($1,802) ($11,669) ($6,955) ($14,728) ($12,087) $382,828 $184,779 RESIDUAL EQUITY TRANSFER $0 $19,184 FUND BALANCE -JANUARY 1, 1995 $431,610 $26,935 $33,094 $39,452 $24,592 $35.283 $1.166,705 $962,742 FUND BALANCE - DECEMBER 31, 1995 $632,117 $25,133 $21,425 $32,497 $9,864 $23,196 $1,549,533 $1,166,705 NOTES TOTIiE FINANCIAL STATEMENTS ARE AN lNTEGRAL PART OF TIllS STATEMENT Page 16 , I - - - - - - - - - - - - - - - - - - - TOWN OF SOUTHOLD . SCHEDULE OF FEDERAL FINANCIAL ASStSTANCE _1>or31.1995 FEDERAL FUND FUND . FEDERAL GRANTORlPASS CFDA PROGRAM BALANCE REVENUE BALANCE THROUGH GRANrORlPROGRAM...." NUMBER AMOUNT ~ RECOGNIZED EXPENDITURES ~ U.S DeooI1ment of Amcu!tun: Passed ....."" Suffolk Countv: Cub-In-Li... of Food Awords 10.550 538,5t7 $0 $38,5]7 538.517 $0 U.S DeooI1ment ofHoaIth II. Humao Scniooo Passed ....."" Suffolk Countv: . Nulrilion 13,635 572,678 $0 $72,678 $72.678 $0 U.S DeooI1ment ofHousine and Urban - . ..I\nf Passed ....."" Suffolk Countv: Conmnmity Dovelopmenl Block 0.. 14,2]8 51,499,058 (]) $0 511I,246 5111.246 $0 U.S DeoartmentofJustioe Office ofCommunitv Oriented PolicinR: s..a. OOPS FAST 16.7]0 575,000 $0 522,0]2 522,012 $0 U.S Deoortmeot ofTl'InSDOI'Wioo Fcdera1 Aviation Administration OvcrIayRunwa)' 12-30 II. 7-25 No, 3-36-0029~8-93 20.106 51,223,416 $0 514,396 514.396 $0 Runway Lighting Systems No, 3-36-0029~5-92 20.106 $430,848 $0 $4.260 $4,260 $0 U.S Small Business Administration Passed 1broum New Yori< Stale: SmoII Business Tree Planting J>ro&>- 59.045 55.000 $0 55,000 55.000 $0 5268.109 5268,109 (I) Combinatiooofsubgnmtawords.._: ~ Dato ".... Year Commenced - xm -1987 111/87 sm,830 XIV -1988 4/1/88 "',000 XV -1989 4/1/89 159.000 XVI -1990 4/1/90 DS.OOO ),,'\'11 -1991 5/1/91 aJ.OOO , XJX -1993 5/14/93 m,928 , XX -1994 5/]8/94 :zn.ooo , XXI -1995 513/95 ]113,300 ~,058 'The above program yeus are opal as""""'" 3], ]995. Program years xm (1987), XIV (]988), XV (J 989), XVI(I990) and XVII(I991) all were cJosod durio& 1995, NOTESlDllJE FlNANCtAL STATEMENTS ARE AN INTEGRAL PART OF TInS STATEMENT Page] 7 - - - - - - - - - - - - - - - - - - - . TOWN OF SOUTHOLD SCHEDULE OF OBLIGATIONS PAYABLE Decomher.31.1995 Oripd Bolan.. Ismed PaId IIoImce Ism. FInal Interest OutstIIndInr bt bt 0utstIIndInr ~ ~ ~ Rate ~ 1m 1995 ~ Purclwc ofFony Serial Bood AJJg-77 F,b-97 S,90 10S,OOO 3S,OOO 70,000 Agricultural Land Rights Serial Bood Oct-84 Ap<-OS 9.10 1,010.000 8S,OOO 92S,OOO Purchase ofFony Serial Bond Oct-84 Ap<-OS 9.10 300.000 2.5,000 27S,OOO Various Purposes Serial Bond F,b-91 Feb-II 6,37S 1,8S0,OOO 17S,OOO 1,67S,OOO Various Purposes Serial Bond Ap<-93 F.b-12 S.OO 2,S2S,000 17S,OOO 2,3S0.OOO Pension Uability Serial Bood Oct-93 Oct-OS 6.00 . 630,000 SO,OOO S80,OOO Agricultural Land Rights Serial Bond Nov-9.5 Nov-!S S.OO .. 0 1,7.50,000 0 1,7S0.OOO NYS Environmenta1 Facilities Corp, Sop-9S Sop-97 0.00 0 236,210 0 236,2tO Various Purpooos BAN. Nov-94 Nov-9S 4.4S 718,000 718,000 0 Payioooder & Truck Tractor BAN. May-9S May-96 4.38 0 2SS,Ooo 0 2SS.OOO Various Purpooos BAN. Nov~9S Nov-96 3.96 0 620,000 0 620,000 Total Obligationa Payabl. 7,138,000 2,861,210 1,263,000 8,736.210 . Variable Rate Bonds .. Variable Rate Bonds From To Rate E!!!!!! To Rate Oct-93 Oct-OI 6.00 Nov-9S Nov-97 S.OO Oct-O I Oct-03 6.10 Nov-97 Nov-08 S,IO Oct-03 Oct-OS 6.12S Nov-08 Nov-09 S,20 Nov-09 Nav-IO S.30 Nov-tO Nov-II S.37S Nov-ll Nov-12 SAO Nov-I2 Nov-IS S.SO NOTES TO TIlE FlNANCtAL STATEMENTS ARE AN \NTEGRAL PART OF THIS STATEMENT Page 18 I . . I I Town of Southold Notes To The Financial Statements For the Fiscal Year Ended December 31, 1995 I I. Summary of Silmificant Accountin2 Policies The financial statements of the Town of South old have been prepared in conformity with I generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for I establishing governmental accounting and financial reporting principles, The more significant of the government's accounting policies are described below. I A. Financial Reporting Entity The Town of South old, which was established in 1640, is governed by its Charter, the Local Municipal Law and other general laws of the State of New York and various local laws. The I Town Board is the legislative body responsible for overall operations, the Supervisor serves as Chief Executive Officer and as Chief Fiscal Officer. I Basic services provided included Public Safety, Health, Transportation, Economic Assistance and Opportunity, Culture and Recreation, and Home and Community Services, I All governmental activities and functions performed for the Town are its direct responsibility, No other governmental organizations have been included or excluded from the reporting entity. I The financial reporting entity consists of (a) the primary government which is the Town of Southold, (b) organizations for which the primary government is financially accountable and I (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial I statements to be misleading or incomplete as set forth in GASB Statement 14, The decision to include a potential component unit in the Town's reporting entity is based on I several criteria set forth in GASB 14 including legal standing, fiscal dependency, and financial accountability. Based on the application of these criteria, the following is a brief review of certain entities considered in determining the Town of Southold reporting entity, I 1. Included in the Reporting Entity a. The Fishers Island Ferry District was established in 1947 by the Town of South old I under special legislation of the New York State Legislature. The Ferry District owns, maintains and operates a public ferry for the transportation 'for hire of persons and vehicles, goods, wares and merchandise, from Fishers Island across the waters of the Long I Island Sound and other adjacent waters to points within and without the state. In addition, the District operates and maintains an airport situated on Fishers Island. The District is administered by an elected board of commissioners consisting of five members I Page 19 I I . . I who report to the Town Board of the Town of South old, The Town of South old is I responsible for all fiscal' matters of the District, including raising of taxes for District purposes, and issues all District indebtedness which is supported by the full faith and credit of the Town of South old. The Ferry District is a component unit, part of the primary I government, and is reported in the special district fund types. b, Various other districts established by the Town of Southold are operated under I provisions of Article 12 of Town Law, Each district is administered by a separate board of commissioners elected by the qualified voters of each district. The Town of Southold raises taxes for each district and issues all district indebtedness which is supported by the I full faith and credit of the Town. These districts are component units, part of the primary government, and are reported in the special district fund types. These districts include the following: I Orient Mosquito District, established in 1916 Fishers Island Garbage and Refuse District, established in 1952 I Cutchogue-New Suffolk Park District, established in 1953 Orient-East Marion Park District, established in 1969 Southold Park District, established in 1907 I Mattituck Park District, established in 1941 I Complete financial statements of these component units can be obtained ftom their respective administrative offices: I Orient Mosquito District Fishers Island Garbage Harrison Demarest, Treasurer & Refuse District Main Road Mildred Dixon, Treasurer I Orient, NY 11957 Fishers Island, NY 06390 Cutchogue-New Suffolk Orient-East Marion I Park District Park District Thomas Shalvey, Treasurer Alfted Norklun, Treasurer P.O. Box 311 Route 25 I Cutchogue, NY 11935 Orient, NY 11957 . Southold Park District Mattituck Park District I Cheryl Crane, Treasurer John Cushman, Treasurer P.O. Box 959 P.O. Box 1413 . Southold, NY 11971 Mattituck, NY 11952 I I I Page 20 I I . . I I B. Basis of Presentation - Fund Accounting The accounts of the Town are organized on the basis of funds or account groups, each of I which is considered a separate accounting entity. The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance/retained earnings, revenues and expenditures/expenses which are segregated for the I purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The various funds are summarized by type in the financial statements. (Certain funds of the local government are utilized to account for I resources derived from, and/or expenditures applicable to an area less than the entire local government). The following fund types and account groups are used: I 1. Fund Categories a. Governmental Funds - Governmental funds are those through which most governmental functions are financed, The acquisition, use and balance of expendable I financial resources and the related liabilities are accounted for through governmental funds. The measurement focus of the governmental funds is upon determination of financial position and changes in financial position. The following are the Town's I governmental fund types. General Fund - the principal operating fund which includes all operations not I required to be recorded in other funds. I Special Revenue Funds - used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes, The following Special Revenue Funds are utilized: I Highway Funds - To maintain and operate highways. I General Fund Part Town - To provide general services outside the Village of Greenport. I Special Grant Fund - Segregate and account for projects funded by Community Development revenue. I Risk Retention Fund - To provide health benefits to certain Town employees. CaDital Proiects Fund - used to account for financial resources to be used for the I acquisition or construction of major capital facilities (other than those financed by special assessment funds and trust funds). I b. Fiduciary Funds - used to account for assets held by the local government in a trustee or custodial capacity: I I Page 21 il i . I I Trust and Agencv Funds - used to account for money received and held in the capacity of trustee, custodian or agent. These include expendable trusts, I non-expendable trusts, and agency funds. 2. Account Groups I 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. I The General Fixed Assets Account Group - used to account for land, buildings, improvements other than buildings, and equipment utilized for general government I purposes, except those accounted for in proprietary funds. The General Long-Term Debt Account Group - used to account for all long-term I debt except that accounted for in proprietary and special assessment funds. C. Basis of AccountingIMeasurement Focus I Basis of accounting refers to when revenues and expenditures and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement I focus. Measurement focus is the determination of what is measured, i,e. expenditures or expenses. I Modified Accrual Basis - All governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. I 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 I used to pay liabilities of the current period. Material revenues that are accrued include real property taxes, state and federal aid, I sales tax and certain user charges, If expenditures are the prime factor for determining eligibility, revenues ITom federal and state grants are accrued when the expenditure is made. I Expenditures are recorded when incurred except that: I a. Expenditures for inventory-type items are recognized at the time of the disbursements. I b. Principal and Interest on indebtedness are not recognized as an expenditure until due. I I Page 22 I . . I I c. Compensated absences, such as vacations and sick leave which vests or accumulates, are charged as an expenditure when paid ( See Note 1(1)). I Account Groups - General fixed assets are recorded at actual or estimated cost or, in the case of gifts and contributions, at the fair market value at the time received, No I provision for depreciation is made, Generallong-terrn debt liabilities are recorded at the par value of the principal amount. No liability is recorded for interest payable at maturity, I D. Property Taxes Real property taxes for the ensuing year are levied annually and become a lien on December 1. I Taxes are collected during the period December 1 to May 31, with the first half due January 10 and the second half due May 31, Tax payments made during the period December 1 to December 31 are recognized as revenue in the subsequent year. I Taxes for county purposes (apportioned to the area of the couilty inside the Town of Southold) are levied together with taxes for town and special district purposes as a single bill, I The towns and special districts receive the full amount of their levies annually out of the first amounts collected on the combined bills. The county assumes enforcement responsibility for all taxes levied in the towns (and for unpaid county taxes in the Town), I Unpaid village taxes and school district taxes are turned over to the county for enforcement. I Any such taxes remaining unpaid at year end are relevied as county taxes in the subsequent year. I E. Budgetary Data 1. Budget Policies - The budget policies are as follows: I a. No later than October 1, the Supervisor submits a tentative budget to the Town Board for the fiscal year commencing the following fiscal year. The tentative budget includes the proposed means of financing for all funds. I b. After public hearings are conducted to obtain taxpayer comments, no later than November 20, the Town Board adopts the budget. I c. All modifications of the budget must be approved by the Town Board. I 2. Encumbrances . Encumbrance accounting, under which purchase orders, contracts and other co1}lmitments for the expenditure of monies are recorded for budgetary control purposes to reserve that I portion of the applicable appropriations is employed in all funds. Encumbrances are reported as reservations of fund balances since they do not constitute expenditures or I I Page 23 I . . I I liabilities. Expenditures for such commitments are recorded in the period in which the liability is incurred. I 3. Budget Basis of Accounting Budgets are adopted annually on a basis consistent with generally accepted accounting principles. Appropriations authorized for the current year are increased by the amount of I encumbrances carried forward ITom the prior year. Budgetary controls for the special revenue funds are established in accordance with the applicable grant agreement which covers a period other than the Towns fiscal year. Budgets have been adjusted to reflect I the Town's fiscal year, F. Changes in Accounting Policies I As a result of the abolition of the Village of Greenport's Police Department, effective January 1, 1995 all costs relating to Police activities were chargeable to the General Fund and were no I longer chargeable to the Special Revenue Fund. G. Departures from Generally Accepted Accounting Principles (GAAP) I There are no departures ITom generally accepted accounting principles (GAAP), H. Property, Plant and Equipment - General I Fixed assets purchased for general governmental purposes are recorded as expenditures in the governmental funds and are capitalized at costs (or estimated historical costs for assets purchased prior to 1976) in the General Fixed Assets Account Group, Contributed fixed I assets are recorded at fair market value at the date received. Fixed assets consisting of certain infrastructure type improvements other than buildings, I including roads, bridges, curbs and gutters, streets and sidewalks, drainage and lighting systems, have not been capitalized, Such assets normally are immovable and of value only to the Town. Therefore, the purposes of stewardship for capital expenditures can be satisfied I without recording these assets, No depreciation has been provided on general fixed assets, nor has interest on general fixed I assets construction in progress been capitalized. I. Insurance I The Town assumes the liability for most risk including, but not limited to, property damage and personal injury liability, Judgments and claims are recorded when it is probable that an I asset has been impaired or a liability has been incurred and the amount ofloss can be reasonably estimated. I J. Vacation and Sick Leave and Compensatory Absences Town employees are granted vacation and sick leave and earn compensatory absences in varying amounts, In the event of termination or upon retirement, an employee is entitled to I Page 24 I I . . I I payment for accumulated vacation and sick leave and unused compensatory absences at various rates subject to certain maximum limitations. I Estimated vacation and sick leave and compensatory absences accumulated by governmental fund type employees have been recorded in the general long-term obligations account group. I Payment of vacation and sick leave recorded in the general long-term obligations account group is dependent upon many factors, therefore, timing of future payments is not readily I determinable. However, management believes that sufficient resources will be made available for the payments of vacation and sick leave and compensatory absences when such payment becomes due. I K. Post Retirement Benefits I In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for retired employees and their survivors, Substantially, all Town employees may become eligible for these benefits if they reach normal retirement age while I working for the Town. Health care benefits and survivors benefits are provided through either an insurance company or the Risk Retention Fund whose premiums are based on the benefits paid during the year. The Town recognizes the cost of providing benefits by recording its I share of insurance premiums or the actual benefits paid from the Risk Retention Fund as an expenditure in the year paid. During the year, $1,241,169 was paid on behalf of68 retirees and 182 active employees and is recorded as an expenditure in the Risk Retention Fund and I the General Fund. The cost of providing benefits for 68 retirees is not separable from the cost of providing benefits for the 182 active employees. I L. Landfill Closure and Postclosure Care Costs The Town ceased accepting waste at its Cutchogue landfill as of October 8, 1993. The Town entered into a stipulation of settlement with the New York State Department of I Environmental Conservation in October, 1994 in which all charges of operational violations at the Cutchogue landfill were dropped. Under the stipulation, the Town agreed to close and I place a final cover over the landfill and to pay a civil penalty of $650,000 over the next seven years (See Note III (B)(3)). In addition to placement of the final cover on the landfill, state and federal regulations presently require the Town to perform certain maintenance and I monitoring functions at the site for up to thirty years. Actual costs associated with the placement of the final cover and the post-closure monitoring are uncertain at this time pending final determination from the New York State Department of Environmental Conservation. I The Town is presently awaiting regulatory relief on this matter. M. Total Columns on the General Purpose Financial Statements I Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis, Data in these columns do not present financial position, results of operations or changes in financial position I I Page 25 I . . I I in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation, Interfund elimination's have not been made in the aggregation of the data. I N. Prior-Period Adjustments Certain errors, resulting in understatement of previously reported assets and liabilities, were I discovered during the prior year, The following is a schedule detailing the nature and amount of each error: I Understatement of Land $ 41,717 Understatement of Buildings 4,914,893 I Understatement of Equipment 3,337,933 Understatement of Provisions to be I made in Future Years Budgets 220,598 Understatement of Compensated Absences (220.598) $ 8 294 543 I II. Stewardshio. Comoliance. Accountabilitv I A. Material Violations of Finance Related Activities There are no material violations of finance-related provisions. I B. Deficit Fund Balances ,..,' There are no deficit fund balances. I C. Overdrawn Appropriations There are no overdrawn appropriations. I m. Detail Notes on all Funds and Account Grouos A. Assets I 1. Cash and Investments I Town investment policies are governed by state statutes, In addition, the Town has its own written investment policy. Town monies are deposited in FDIC insured commercial banks or trust companies located within the state. The Supervisor is authorized to use I demand accounts and certificates of deposits. Permissible investments include obligations of the u.s. Treasury and U.S. Agencies, repurchase agreements, and obligations of New York State or its localities. I Collateral is required for demand deposits and certificates of deposit at 105 percent of all deposits not covered by federal deposit insurance. Obligations that may be pledged as I I Page 26 I . . I I collateral are obligations 'of the United States and its agencies and obligations of the State and its municipalities and school districts. I The written investment policy requires that repurchase agreements be purchased fTom banks located within the State and that underlying securities must be obligations of the federal government. Underlying securities must have a market value of at least 105 I percent of the cost of the repurchase agreement. Deposits. All deposits, including certificates of deposits, are carried at cost plus accrued I interest. Deposits at year-end were entirely covered by federal depository insurance or by collateral held by the Town's custodial banks in the Town's name. I 2. Changes in Fixed Assets Fixed assets increased fTom $22,352,575 to $22,702,344. I B. Liabilities 1. Pension Plans I General Information The Town participates in the New York Employees' Retirement System and the New I York State Policemen's and Firemen's Retirement System, These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits, Obligations of employers and employees to contribute and I benefits to employees are governed by the New York State Retirement and Social Security Law (NYSRSSL). 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. I 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 I statements and required supplementary information, That report may be obtained by writing the New York State and Local Retirement System, Gov, AlfTed E. Smith State Office Building, Albany, NY 12244, I Funding Policy The Systems are noncontributory except for employees who joined the New York State I 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 I rates expressed as proportions of payroll of members, which shall be used in computing the contributions required to be made by employers to the pension accumulation fund. I The Town of Southold is required to contribute at an actuarially determined rate. The I Page 27 I I . . I I required contributions for the current year and two preceding years were as follows: I 1995 $ 356,258 1994 $ 573,318 1993 $ 970,346 I The Town's contributions made to the Systems were equal to 100% of the contributions required for each year, I 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 I 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, I The Town elected to make the full payment on December 15, 1993, by issuing serial bonds to replace this debt (See Note III(B)(3)). I Pursuant to Chapter 178 of the Laws of 1991 and Chapter 12 of the laws of 1995, the State Legislature authorized local governments to make available a retirement incentive I program with estimated total costs of $105,799, of which $10,542 was charged to expenditures/expense in the governmental funds in the current fiscal year, The cost of the programs will be billed and paid over five years beginning December 15, 1992 for Chapter I 178 and December 15, 1996 for Chapter 12 and will include interest at 8,75%. 2. Short-Term Debt I a. Liabilities for bond anticipation notes (BAN's) are generally accounted for in the capital projects funds. Principal payments on BAN's must be made annually. I 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, BAN's issued for assessable improvement projects may be renewed for periods equivalent to the I maximum life of the permanent financing, provided that stipulated annual reductions of principal are made, To Be Redeemed 1996 I Interest Budget Description Amount Rate AODroDriations Bonds Payloader & Truck Tractor $ 255,000 4.38% $ 51,000 $ 204,000 I Various Purposes 620.000 3.96% 173.900 446.100 Total $875 000 $ 224 900 $ 650100 I b. At December 31, 1995, the outstanding indebtedness of the Town for the project financed under the New York State Water Pollution Control Revolving Fund Short- I Term Financing Program aggregated $236,210, and is accounted for in the capital I Page 28 I . I I projects fund. This is a zero interest loan. State law requires that obligations issued under this program be converted to long-term obligations within two years of the I original issue date, This obligation has been converted to a long-term obligation in the amount of$300,000 on February 15, 1996 (See Note VII). I 3. Long-Term Debt a. At December 31, 1995, the total outstanding indebtedness of the Town, excluding the above obligations aggregated $7,625,000. Of this amount, $7,112,000 was subject I to the constitutional debt limit and represented approximately 2.94% of its debt limit. b, Serial Bonds and Capital Notes - The Town borrows money in order to acquire I land or equipment or construct buildings and improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers receiving the benefit of the capital assets. These long term liabilities, which are full faith and credit I debt of the local government, are recorded in the General Long-Term Debt Account Group. The provision to be made in future budgets for capital indebtedness represents the amount exclusive of interest, authorized to be collected in future years fTom I taxpayers and others for liquidation of the long-term liabilities. c. Other Long-Term Debt - Tn addition to the above long-term debt, the local I government had the following non-current liabilities: Due to New York State Department of Environmental Conservation (NYSDEC)- I Represents the non-current portion of the liability due under the settlement in which all charges of operational violations at the Cutchogue landfill were dropped. I Compensated Absences - Represents the value of earned and unused portion of the liability for compensated absences. I d, Summary Long-Term Debt - The following is a summary oflong-term liabilities outstanding at December 31, 1995 by fund type and account group: I General Long Term Liability Debt Account Group I Serial Bonds $ 7,625,000 Due to NYSDEC 450,000 I Compensated Absences 2.240.886 I Total Long-Term Debt $10,315,886 General-Long Term I I Page 29 I -- . . I I e, The following is a summary of changes in the long term liabilities for the period ended December 31, 1995: I Bonds and Due to Compensated Notes NYSDEC Absences Payable at beginning of $ 6,420,000 $ 650,000 $ 2,077,612 I Fiscal Year Additions 1,750,000 I Deletions 545.000 200.000 I Payable at End of Fiscal $ 7,625,000 $ 450,000 $ 2,240,886 Year I Additions and deletions to compensated absences are shown net since it is impracticable to determine these !IIIlounts separately, I f, Long Term Debt Maturity Schedule - The following is a statement of serial bonds with corresponding maturity schedules: I Payable ttom: Special Revenue Fund Description: Fishers Island Ferry District I Dated: August 1, 1977 Issue Amount: $ 589,000 Interest Rate: 5.9% I Final Maturity Date: February 1, 1997 Balance as of December 31,1995: $ 70,000 I Payable ttom: General Fund, Special Revenue Fund Description: Various Purposes Dated: October 1, 1984 I Issue Amount: $2,172,500 Interest Rate: 9.1 % Final Maturity Date: April 1, 2005 I Balance as of December 31, 1995: $1,200,000 I Payable ttom: General Fund, Special Revenue Fund Description: Various Purposes Dated: February 15, 1991 I Issue Amount: $2,708,500 Interest Rate: 6.375% Final Maturity Date: February 15, 2011 I Balance as of December 31, 1995: $1,675,000 I Page 30 I . . I I I Payable from: General Fund, Special Revenue Fund Description: Various Purposes I Dated: April 15, 1993 Issue Amount: $2,695,000 Interest Rate: 5,00% I Final Maturity Date: February 15, 2012 Balance as of December 31,1995: $2,350,000 I Payable from: General Fund, Special Revenue Fund, Special District Fund I Description: Pension System Dated: October 1, 1993 Issue Amount: $ 678,000 I Interest Rate: October 1, 1993 to October 1, 2001 - 6,000% October 1, 2001 to October 1, 2003 - 6.100% October 1, 2003 to October 1, 2005 - 6.125% I Final Maturity Date: October I, 2005 Balance as of December 31,1995: $ 580,000 I Payable from: General Fund Description: Agricultural Land Development Rights I Dated: November 1, 1995 Issue Amount: $1,750,000 Interest Rate: November 1, 1995 to November 1, 1997 - 5,00% I November 1, 1997 to November 1, 2008 - 5.10% November 1, 2008 to November 1, 2009 - 5.20% November 1,2009 to November 1, 2010 - 5,30% I November 1, 2010 to November 1, 2011 - 5,375% November 1, 2011 to November 1, 2012 - 5.40% November 1, 2012 to November 1, 2015 - 5,50% I Final Maturity Date: November 1, 2015 Balance as of December 31,1995: $1,750,000 I I I I Page 31 I . . I I g. The following table summarizes the Town's future debt service requirements for I Serial Bonds as of December 31,1995: Year Ending Princioal Interest I 1996 520,000 449,094 1997 570,000 416,676 I 1998 485,000 383,414 I 1999 490,000 352,361 2000 490,000 321,052 I 2001-2005 2,475,000 1,128,864 2006-2010 1,655,000 498,383 I 2011-2015 940,000 108,043 I h, The following table summarizes the Town's future payment requirements for the stipulation of settlement with the NYS Dept. of Environmental Conservation as of December 31, 1995: I Year Ending Amount I 1996 $ 125,000 1997 65,000 I 1998 65,000 1999 65,000 I 2000 65,000 2001 65.000 I Tetai $ 450 000 I I I I Page 32 I . . I I C. Interfund Receivables and Payables I Interfund receivables and payables at December 31, 1995 were as follows: Fund InteIfund InteIfund I Receivables Pavables General Fund Whole Town $ 714 I Highway Fund Whole Town $ 51,102 Highway Fund Part Town 53,220 2,118 I Southold Wastewater District 666 I Capital Fund 25,000 Trust and Agency 25,048 I Fishers Island Ferry District 39,413 Fishers Island Agency & Trust 39.413 I Total InteIfund $118347 $1]8347 I D. Fund Equity 1. Reserves I The capital projects fund equity include 12 capital reserve funds established for varying purposes. I E. Deferred Compensation Plan Employees of the Town may elect to participate in a Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. The plan, available to all employees, I permits them to defer a portion of their salary until future years, usually after retirement. As of December 31,1995, the market value of the assets of the plan totaled $631,187, I Under the terms of the plan agreement, these monies are subject to the claims of the Town's general creditors. Accordingly, this amount is reflected as an Agency Fund asset I along with a corresponding liability to the employees participating in the plan. Participating employees are general creditors of the Town with no preferential claim to deferred funds. I F. Lease Commitments and Leased Assets The Town leases property and equipment under operating leases, Total rental expenditures I on such leases for the fiscal year ended December 31,1995 were approximately $31,809, I Page 33 I . . I I Future obligations over the primary terms of the Town's leases as of December 31, 1995 are as follows: I Year Ended December 31 1996 $ 34,104 I 1997 29,474 1998 17,940 1999 10,695 I 2000 10,695 2001 & thereafter 18.015 Total $ 120923 I VI. Continllencies The Town has received grants which are subject to audit by agencies of the State and Federal I Governments. Such audits may result in disallowance's and a request for a return of funds to the federal and state governments, Based on past audits, the local government administration believes disallowances, if any, will be immaterial. I vn. Subseauent Events I On February 15, 1996, the outstanding indebtedness of the Town for the project financed under the New York State Water Pollution Control Revolving Fund Short-Term Financing Program was converted to the New York State Environmental Facilities Corporation, Revolving Fund Revenue I Bonds, Series 1996A. The Town's portion of this obligation is in the amount of $300,000, The interest rate on the Town's portion of the bonds increases ITom 2.95% through December 15, 1996 to 5.20% through December 15, 2014. The final maturity date of the Town's portion of the I bonds is December 15, 2014, vm. Other I A. In the State Annual Update Document, four Road Improvement Districts are included in the Highway Fund Whole Town; in the audit report, these funds are included as Special Revenue Funds, I B. The Town is the sponsor of a grant ITom the Federal Aviation Administration for airport improvements at Elizabeth Airfield. The Town has contracted with Calacerinos & Spina I Engineers, P.C, to administer the grant. A copy of an audit report which includes a compliance audit is reviewed by the Town. These funds are shown in the audit report on the Schedule of Federal Assistance. I I I I Page 34 I