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Home My WebLink About1984 162 Grifftng Avenue June 17, 1985 Town Board Toqn of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have examined the general purpose financial statements of the Town of Southold for the year ended December 31, 1984. Our examina.tion was made in accordance with generally accepted auditing stan.dards as set forth in OMB Circular A-102, and ~ccordingly, included such tests of the accounting records, tests of the internal financial control systems, and other such auditing procedures as was considered necessary in the circumstances. With regard to Federal Funds, please note that the Town's financial operations are conducted properly, the financial statements are presented fairly, the Town has complied with laws and regulations affecting the expenditure of Federal Funds and that internal procedures have been established to meet the objectives of the programs. Financial reports submitted to County and Federal governments contained accurate and reliable financial information. Report on ~ederal Grant Activities is shown on pages 19-21. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The Supplementary Schedules are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the examin~. ation of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The G.A.A.F.R. differs in certain respects from generally accepted municipal accounting principles (GAAP) as follows: GAAP provides for recognition of all revenues susceptible to accrual, i.e., measurable and available to meet expenditures incurred in current'operations. Town Board Town of Southold June 17, 1985 Page Two GAAP provides for expenditures to be recog- nized when liabilities are incurred and that encumbrances be recognized as expenditures. GAAP provides that capital projects be accounted for on a full accrual basis of accounting, reflecting only the actual fiscal activity of the fund with the nominal accounts being closed at the end of the fiscal year to fund balances. In our opinion, with the exception of the aforementioned differences from GAAP, the general purpose financial statements present fairly the financial position of each of the fund types and account groups of the Town of Southold at December 31, 1984 and the results of operations of such fund types for the year .then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the pre- ceding year. Respectfully submitted, ELAINE F. KALDOR Certified Public Accountant EFK/vemc TOWN OF SOUTHOLD INDEX STATEMENTS Combined Balance Sheet Ail Fund T~pes & Account Groups Combined Statement of Revenues, Expenditures & Changes in Fund Balance - Ail Governmental Fund Types Combined Statement of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual Ail Governmental Fund Types Combining Statements of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual General Funds Special Revenue Funds Special Assessment & Capital Funds Combining Balance Sheets General Funds Special Revenue Funds Combining Statement of Revenues, Expenditures & Changes in Fund Balance General Funds Special Revenue Funds 4 5 6 7 8 9 10 SCHEDULES Schedule o~ Long Term Debt Fisher's Island Ferry District - Balance Sheet Statement of Revenues, Expenditures & Changes in Fund Balance Departmental Bank Reconciliations Town Clerk Tax Receiver Justices of the Peace Fiduciary Bank Reconciliations Payroll Account Supervisor's Tax Account E-W Water District 11 12 13 14 14 15 16 16 16 -continued- TOWN OF SOUTHOLD INDEX CONTINUED Report on Internal Accounting Control Report of Federal Grant Activities Schedule of Federal Grant Activity Notes to Report 27-18 19-20 21 22-24 YOTAL ASSETS LIABILITIES & FLeD BALANCE Accounts Payable Due to Other Gove~ments TOTP~L LI*kBILITIES TOWN OF SOUTHOLD COMBINED BALANCE SSEET ALL FUND TYPES & ACCOUNT GROUPS DECEMBER 31, 1984 GENERAL $440,510 $299,904 $3,587,331 2,423 1,6OO 960 3,732 $43,754 $ $ $643,070 $306.059 $3,587~331 $ -0- $43~75~4 $ 60,137 $ 42,424 $ $ $ 1,600 15,157 18,125 24,584 6,055 19,201 $ 841721 $ 59,181 $ -0- $ -0- $43,381 $ 373 $ 373 $43,754 $ $ 9,500 3,587,331 225,000 145,390 123t849 101~488 $358~349 $246,678 $3,587,331 575,995 1,578,387 3,336,637 5,176,098 12/31/84 12/31/83 $ 4,371,699 $ 856,157 $ $ $ 102,561 $ 52,043 1,600 a.351 33,282 &6,058 205,471 230,055 503,227 509,282 5,719 19,201 7,728 4,467,600 41467t400 1,131,067 9,500 ~4,i67 3,587,704 333,335 370,390 333,204 M~MOP, ANDL~ ONLy SPECIAL TOTALS ASSESSMENT 12/31/84 12/31/83 $3,205,507 $1,436,050 $ $1,687 $ 4,643,244 $3,985,854 16,986 16,586 15,556 189,228 31,667 220,895 194,171 960 960 960 187,836 108,330 101,454 397,620 235,029 48,067 48,067 &2,454 21,296 21,296 18,906 126,739 772 127,511 54~467 46,838 24,953 71,791 139,418 19,936 19,936 27,642 618,991 179,247 25,240 823,476 726,194 517,541 278,720 796,261 467,762 -0- 80,963 3~590~000 3,990,000 1,129,400 $4!462,048 $2~318~496 $3~995~414 $1~687 $10~777,6~5 $7,118,796 $ 920,322 $ $ 98,502 $ $ 1,018,824 $ 725,614 1,685,233 7,000 1,692,233 1,531,605 10,000 10,000 7,233 237,715 1,404,814 3,384 1,645,913 1,575,316 21,906 143,971 165,477 146,090 159,208 159,208 162,051 399,962 409,724 565,217 1,370,903 1,259,394 832,987 246,671 1,079,298 984,371 76,636 248,142 1,687 326,465 19,088 15 (535) (1) -0- (521) 1~223 Excess Revenue Over (Under) l:xpendttures $ (297,323) $ (299,694) $ (10,478) $ -0- $ (607,495) $ 3,309,364 STATEMENT BALANCE TOWN OF SOUTHOLD OF REVENUES, EXPENDITURES AND CHANGES IN FUND BUDGET AND ACTUAL - GENERAL FUND TYPES JANUARY 1 - DECEMBER 31, 1984 BUDGET ACTUAL ENCUMBRANCE REVENUES Real Property Taxes $3,205,507 $3,205,507 Real Property Tax Items 17,000 16,586 Departmental Income 144,825 189,228 Intergovernmental Charges 1,000 960 Use of Money & Property 137,100 187,836 Licenses & Permits 48,650 48,067 Fines & Forfeitures 18,600 21,296 Property Sales & Loss Compensation 61,150 126,739 Miscellaneous Local Sources 59,200 46,838 Interfund Revenues 2,500 -0- State Aid 364,158 618,991 TOTAL REVENUES Appropriated Fund Balance TOTAL $4,059,690 297,323 $4,357,013 $4,462,048 VARIANCE FAVORABLE(UNFAVORABLE $ (414) 44,403 (4O) 50,736 (583) 2,696 65,589 (12,362) (2,500) 254,833 $402,358 EXPENDITURES General Government Support $ 921,331 $ 920,322 Public Safety 1,685,902 1,685,233 Health 10,000 10,000 Transportation 238,093 237,715 Economic Assistance & Opportunity 21,987 21,906 Culture & Recreation 159,721 159,208 Home & Community Services 410,043 399,962 Employee Benefits 833,300 832,587 Debt Service 76,636 76,636 TOTAL EXPENDITURES Excess Revenue Over (Under) Expenditures $ (297,323) $ 118,479 Fund Balance January 1, 1984 239,855 239,855 Adjustment of Prior Year Accrual 15 15 9,500 $4,357,013 $4,343,569 $9~500 FUND BALANCE DECEMBER 31, 1984 $ (57,453) $ 358,349 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT --4-- $ 1,009 669 378 81 513 581 713 · $ 3,944 STATEMENT TOWN OF SOUTHOLD OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE BUDGET & ACTUAL - SPECIAL REVENUE FUND TYPES JANUARY 1 DECEMBER 31, 1984 VARIANCE BUDGET ACTUAL ENCUMBRANCE FAVORABLE (UNFAVORABLE) REVENUES Real Property Taxes $1,436,050 Departmental Income 32,985 Use of Money & Property 64,084 Property Sales & Loss Compensation -0- Miscellaneous Local Sources 56,681 Interfund Revenues 16,570 State Aid 181,229 Federal Aid 759,192 TOTAL REVENUES $2,546,791 Appropriated Fund Balance 299,694 TOTAL $2,846,485 $1,436~050 31,667 $ (1,318)~ 108,330 44,246 772 772 24,953 (31,728) 19,936 3,366 179,~47 (1,982) 517,541 (241,651) $2,318,496 $(228,295) EXPENDITURES General Government Support $ 500 $-O- Public Safety 7,000 7,000 Transportation 1,512,246 1,404,814 Economic Assistance & Opportunity 143,633 143,571 Home & Community Services 657,557 405,724 Employee Benefits 277,373 246,671 Debt Service 248,176 248,142 TOTAL EXPENDITURES Excess Revenue Over (Under) Expenditures Fund Balance January 1, 1984 $2,846,485 $2,455,922 -0- (299,694) (137,426) 384,839 384,839 Adjustment of Prior Year Accrual (535) (535) $ 500 107,432 62 251,833 30,702 34 $ 390,563 FUND BALb2qCE DECEMBER 31, 1984 $ 84,610 $ 246,878 NOTES TO FINANCIAL 'STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -5- TOWN OF SOUTHOLD STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE BUDGET & ACTUAL - CAPITAL AND SPECIAL ASSESSMENT FUNDS JANUARY 1 - DECEMBER 31, 1984 REVENUES Real Property Taxes Use of Money & Property Miscellaneous Local Sources State Aid Federal Aid -CAPITAL FUNDS- BUDGET ACTUAL VARIANCE $ $ 101,454 101,454 54,000 (54,000) 212,959 25,240 (187,719) 2,176,762 278,720 (1,898,042) -SPECIAL ASSESSMENT FUND- BUDGET ACTUAL VARIANCE $1,687 $1,687 $ -0- TOTAL REVENUES Proceeds of Obligations Appropriated Fund Balance $2,443,721 $ 405,414 $(2,038,307) 3,238,597 3,590,000 351,403 10,478 $1,687 $1,687 $ -0- TOTAL $5,692,796 $3,995,414 $(1,686,904) $1,687 $1,687 $ -0- EXPENDITURES General Government Support Transportation Home & Community Service Debt Service TOTAL EXPENDITURES Excess Revenues Over (Under) Expenditures Fund Balance January 1, 1984 Adjustment of Prior Period Accrual $1,840,000 $ 98,502 $ 1,741,498 290,842 3,384 287,458 3,561,954 565,217 2,996,737 $5,692,796 $ 6~7,103 $ 5,025,693 $ (10,478) $3,328,311 259,021 259,021 (1) (1) $ $ 1,687 1,687 -0- $1,687 $1,687 $ -0- $ -o- $ -o- -0- -0- -0- -0- FUND BALANCE DECEMBER 31, 1984 $ 248,542 $3,587,331 $ -0- $ -0- NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT · OWN OF SOUTHOLD COMBINING BALANCE SHEETS ALL GENERAL FUNDS DECEMBER 31, 1984 TOWN WIDE ASSETS Cash $312,682 Dui from Other Funds 1,600 Due from Other Govern- ments 960 PART TOWN $127,828 MEHORANDUH ONLY TOTALS 12/31/84 12/31/83 $440,510 $253,544 1,600 4,351 960 960 TOTAL ASSETS $315,242 $127,828 $443,07,0 $258~855 LIABILITIES & FU~D BALANCES Accounts Payable Compensated Absences TOTAL LIABILITIES $ 56,163 $ 3,974 $ 60,137 $ 19,000 24~584 -0- 24,584 -0- $ 80,747 $ 3,974 $ 84~721 $ 19~000 FUND BALANCES Reserved for Encum- brances $ 9,500 Unreserved - Appropriated for Ensuing Year's Budget 155,000 -Unappropriated 69~995 $ -0- $ 9,500 $ 6,600 70,000 225,000 160,000 53~854 123~849 73~255 TOTAL FUND BALANCES $234~495 $123~854 $358~349 $239~8~5 TOTAL LIABILITIES & FUND BALANCES $315,242 $127,828 $443,070 $258,855 NOTES TO FINANCIAL~ STATEMENT ARE AN INTEGRAL PART OF, THIS STATEMENT -7- TOTAl. ASSETS $ $ $ $ $ $ $ TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE JANUARY 1 - DECEMBER 31, 1984 TOWN PART WIDE TOWN MEMORANDUM ONLY ~OTALS 12/31/84 12/31/83 REVENUES Real Property Taxes $1,277,288 Real Property Tax Items 16,586 Departmental Income 53,811 Intergovernmental Charges 960 Use of Money & Property 77,188 Licenses & Permits 38,386 Fines & Forfeitures 21,296 Property Sales & Loss Com- pensation 126,739 Miscellaneous Local Sources 3,755 State Aid 508,758 $1,928,219 $3,205,507 $21698,462 16,586 15,556 135,417 189,228 135,953 960 960 110,648 187,836 139,098 9,681 48,067 42,454 21,296 18,906 126,739 54,467 43,083 46,838 56,313 110,233 618,991 463,943 TOTAL REVENUES $2,124,767 $2,337,281 $4,462,048 $3,626,112 EXPENDITURES General Government Support $ 877,768 $ 42,554 Public Safety 88,170 1,597,063 Health 7,000 3,000 Transportation 23~,715 Economic Assistance & Opportunity 21,906 Culture & Recreation 159,208 Home & Community Service 269,902 130,060 Employee Benefits 281,496 551,091 Debt Service 76,636 TOTAL EXPENDITURES Excess Revenues Over (Under) Expenditures Fund Balance January 1, 1984 Adjustment of Prior Year Accruals $2,019,801 $2,323,768 $ 920,322 $ 725,614 1,685,233 1,498,505 10,000 7,233 ~237,715 212,866 21,906 12,298 159,208 162,051 399,962 310,273 832,587 756,058 76,636 $4,343,569 $3,684,898 104,966 13,513 118,479 (58,786) 129,514 110,341 239,855 298,641 15 15 FUND BAI2%NCE DECEMBER 31, 1984 $ 234,495 $ 123,854 $ 358,349 $ 239,855 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF 'THIS STATEMENT -9- 16,770 $16,770 2,500 64,325 $66,825 TOTAL TOWN OF SOUTBOLD DETAIL OF INDEBTEDNESS DECEMBER 31, 1984 ORIGINAL FINAL ISSUE DATE MATURITY 4/80 4/84 5/80 3/85 5/81 5/86 3/82 3/87 6/82 5/87 12/82 12/87 11/83 11/88 6/83 6/88 8/84 8/89 8/84 8/89 10/84 10/89 2/84 2/89 INTEREST OUTSTANDING ISSUED PAID OUTSTANDING RATE 1/1/84 IN 1984 IN 1984 12/31/84 8.50 $ 1,600 $ $ 1,600 $ 5.50 27,000 15,000 12,000 6.25 46,800 15,600 31,200 6.05 76,000 19,000 57,000 6.50 A5,600 11,400 54,200 6.27 84.000 21,000 63,000 6.84 600,000 120,000 480,000 6.89 250,000 50,000 200,000 7.14 500,000 500,000 7.17 500,000 500,000 7.00 750,000 750,000 5.69 90,000 90,000 4/84 4/86 7.22 87,500 87,500 4/84 4/2005 9.10 1,662,500 1,662,500 NOTES TO FINANCIAL STATEMENT ARE AR INTEORAL PANT OF T11]S STATEME~ $3,590,000 8253,600 $4)467~400 ASSETS Cash Amount to be Provided for Long Term Debt FISHERS ISLAND FERRY DISTRICT COMBINED BALANCE SHEET DECEMBER 31, 1984 GENERAL CAPITAL FUND FUND TRUST & AGENCY $2,518 $2,518 $1,111,203 $ LONG:TERM. MEMORANDUM ONLY DEBT ACCOUNT TOTALS GROUP 12f31/84 12/31/83 $ $1,113,721 $ 966,419 950~000 950,000 465,000 TOTAL ASSETS $1,111,203 $ -0- $950,000 $2,063,721 $1,431,419 LIABILITIES & FUND BALANCE LIABILITIES Deposits Held Serial Bonds Payable $ $2,518 $2,518 $ $ $2~518 $ $ 2,518 $ 7,595 950,000 950,000 465,000 $950,000 $ 952,518 $ 472,595 $ $ 1,970 $ 211,388 1,109,233 747,436 $ -0- $1,111,203 $ 958,824 $950,000 $2,063,721 ' $1,431,419 TOTAL LIABILITIES $ -0- $ -0- FUND BALANCE Reserved Unreserved $ 1,970 $ 1,109,233 TOTAL FUND BALANCE $1,111,203 $ -0- TOTAL LIABILITIES & FUND BALANCE $1,111,203 $ -0- NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT FISHERS ISLAND FERRY DISTRICT COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE JANUARY 1 - DECEMBER 31, 1984 GENERAL CAPITAL FUND FUND MEMOP~NDUM ONLY TOTALS 12/31/84 12/31/83 REVENUES Real Property Taxes DeRartmental Income Use of Money & Property Property Sales & Loss Compensation Interfund Transfers Gifts & Donations Proceeds of Obligations $ 129,947 $ 674,724 89,302 27 24,447 510,000 8,559 326,454 129,947 $ 124,293 674,724 638,736 97,861 62,386 27 268 24,447 47,062 326,454 187,085 510,000 TOTAL REVENUE $1,428,447 $ 335,013 $1,763,460 $1,059,830 EXPENDITURES Personal Services $ 249,514 $ Contractual Expense 337,263 Capital Outlay 413,833 499,235 Employee Benefits 35,021 Debt Service 51,768 Interfund Transfers 24,447 249,514 $ 58,395 337,263 521,958 913,068 13,146 35,021 14,331 51,768 53,240 24,447 47,062 TOTAL EXPENDITURES $1,087,399 $ 523,682 $1,611,081 $ 708,132 Excess Revenues Over (Under) Expenditures $ 341,048 $(188,669) $ 152,379 $ 351,698 Fund Balance January 1, 1984 770,155 188,669 958,824 607,102 Adjustment for Prior Year Accrual -0- -0- -0- 24 FUND BALANCE DECEMBER 31, 1984 $1,111,203 $ -0- $1,111,203 $ 958,824 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -13- TOWN OF SOUTHOLD DEPARTMENTAL BANK RECONCILIATIONS DE~CEMBER 31, 1984 TOWN CLERK - JUDITH T. TERRY Bank Balance 12/31/84 Add: Deposit in Transit Less: Outstanding Checks Ledger Balance Add: 12/31/84 Interest $ 22,615.93 928.95 23,452.17 92.71 $ 23,544.88 $ 23,544.88 TAX RECEIVER - GEORGE MELLAS Checking Account Bank Balance 12/31/,~4 Add: Deposit in Transit Less: Outstanding Checks Less: Bank Error In Deposit $1,000,567.96 1,000,460.63 107.33 Savings Account 12/31/84 TOTAL Bank Balance $2,583,459.70 $2,583,459.70 Ledger Balance Add: 12/31/84 Interest $2,581,734.66 1,725.04 $2,583,459.70 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -14- TOWN OF SOUTHOLD JUSTICES OF THE PEACE - BANK RECONCILIATIONS DECEMBER 31, 1984 JUSTICE TEDESCHI Bank Balance 12/31/84 Add: Deposit in Transit Less: Outstanding Checks Justice's Ledger - Bail Money - Due to Comptroller - Civil Fees Pending $2,150.00 1,676.00 5.00 ~3,981.00 150.00 $3,831.00 $3,831.00 JUSTICE PRICE Bank Balance 12/31/84 - Checking Account - Bail Account Add: Deposit in Transit Less: Outstanding Checks Justice's Ledger - Bail Money Partial Find Paid Due to Comptroller $2,061.26 250.00 2,179.50 $2,429.50 2,061.26 $4,490.76 -0- $4,490.76. $4,490.76 JUSTICE EDWARDS Bank Balance 12/31/84 Add: Deposit in Transit Less: Outstanding Checks Justice's Ledger - Bail Money $ 250.00 $ 250.00 $ 250.00 $ 250.00 NOTES TO FINANCIAL 'STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -15- TOWN OF SOUTHOLD FIDUCIARY BANK RECONCILIATIONS DECEMBER 31, 1984 PAYROLL ACCOUNT Bank Balance 12/31/84 Add: Deposit in Transit Less: Outstanding Checks Bank Error LEDGER BALANCE $ 87,626.98 87,626.78 .20 SUPERVISOR'S TAX ACCOUNT Bank Balanae 12/31/84 Add: Deposit in Transit Less: Outstanding Checks LEDGER BALANCE 1,000,000.00 1,000,000.00 E-W WATER DISTRICT Bank Balance 12/31/84 Add: Deposit in Transit Less: Outstanding Checks LEDGER BALANCE ~NTEREST EARNED DUE TO DISTRICT 20.39 $ 20.39 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -16- E. F. KALDOR, C.P.A, P.C. 162 Grilling Ave. June 17, 1985 REPORT ON INTERNAL ACCOUNTING CONTROL COMPLIANCE FOR FEDERAL GRANT ACTIVITIES 1/1-12/31/84 Town Board Town of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have '~xamined the general purpose financial statements of the Town of Southold for the year ended December 31, 1984 and have issued our report thereon dated June 17, 1985. As a part of our examination, we have made a study and evaluation of the Town's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the Town's financial statements. The Town Board of the Town of Southold is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and Judge- ments by the Board are required to asses.s the expected benefits and related costs of control procedures. The objectives of a system are to provide the Board with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthor- ized use or disposition, and that transactions are executed in accordance with the Board'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 system of interal accounting controls, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that pro- cedures may become inadequate because of changes in conditions ~r that the degree of compliance with the procedures may deterio- rate. -17- Report on Internal Accounting Control Compliance for Federal Grant Activities June 17, 1985 Page Two In our~ opinion, the system of internal accounting controls of the Town of Southold that existed during the year ended Decem- ber 31, 1984, taken as a whole, was sufficient to meet objectives stated above insofar as those objectives pertain to the preven- tion o~ detection of errors or irregularities in amounts that would be material in relation to the financial statements of the Town' of Southold. This report is intended solely for the use of the Town Board and the cognizant agency and should not be used for any other purpose. Very truly yours, EFK/vemc ELAINE F. KALDOR Certified Public Accountant F. K~r.r~oR, C.P.A., 162 Grilling Avenue June 17, 1985 REPORT ON FEDERAL GRANT ACTIVITIES 1/1/84 -12/31/84 Town Board Town of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have examined the combined financial statements of the Town of Southold as of December 31, 1984 and for the year then ended and have issued our opinion thereon dated June 17, 1985. In addition, we have examined the accompanying Schedule of Federal Grant Activity. Our examination was made in accordance with generally accepted auditing standards, the provisions of Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, promulgated by the Comptroller General, which pertain to financial and compliance audits; the Office of Management and Budget's (OMB) Major Compliance Features of Programs Administered by State and Local Governments (the approved compliance supplement); the provisions of OMB's Attachment P, Audit Requirements to its Circular A-102, Uniform Administrative Requirements for Grants- in-Aid to State and Local Governments; and the Guidelines for Financial and Compliance Audits of Federally Assisted Programs; and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Attachment P requires that the examination include a determination of whether the Federal financial reports (in- cluding financial status reports, cash reports, and claims for advances and reimbursements) prepared by the Town of Southold contain accurate and reliable financial data. We have been in- formed that OMB interprets the phrase "accurate and reliable financial data"to mean that the Federal financial reports pre- sent the underlying financial data of the grants within limits that are reasonable and practicable to attain under the circum- stances. -19- Report on Grant Activities June 17, 1985 Page Two In our opinion, for the tested operations and records, the Town of Southold complied with the material terms and conditions of its Federal grants, contracts and agreements, and the Schedule of Federal Grant Activity presents the underlying financial data of the grants within the limits described in the preceding paragraph. Further, based upon our examination and procedures referred to above, nothing came to our attention to indicate that the Town of Southold had not complied with the comp'liance matters referred to above, or that the Federal financial reports do not present the underlying financial data of the grants within the limits described in the preceding para- graph. This report is intended solely for the use of the Town of Southold, t~e cognizant agency and other Federal audit agencies and should not be used for any other purpose. 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. Very truly yours, ELAINE F. Certified KALDOR Public Accountant EFK/vemc -20- TOWN OF SOUTHOLD SCHEDULE OF FEDERAL GRANT ACTIVITY JANUARY 1 - DECEMBER 31, 1984 Departmental Income Use of Money & Property State Aid Federal Aid Proceeds of Obligations TOTAL REVENUES FEDERAL SPECIAL REVENUE GRANT NUTRITION FAA SHARING FUND FUND STUDY $ 9,293 147,899 308,308 WASTEWATER TREATMENT PLANT 31,667 $ $ 584 60,130 74,679 1,327 23,360 44,564 16,770 278,720 1,750,000 $157,192 $308~308 $151~494 $18,097 $2,112,210 EXPENDITURES General Government Support $ Transportation Economic Assistance Opportunity Home & Community Services Employee Benefits Debt Service TOTAL EXPENDITURES Excess Revenues Over (Under) Expenditures Fund Balance January 1, 1984 Adjustment of Prior Year Accrual 7,000 $ $ 10,227 143,571 15,004 367,926 7,796 151,351 $ $ 16,770 444,094 $183,582 $367,926 $151,367 $16,770 $ 444,094 $(26,390) $(59,618) $ 127 $ 1,327 $1,668,116 73,629 66,580 (175) -0- 116,334 -0- -o- (91o) -0- -0- FUND BALANCE DECEMBER 31, 1984 $ 47,239 $ 6~962 $ (958) $ 1,327 $1,784,450 NOTES TO FINANCIAL STATEMENT ARE AN INTEGRAL PART OF THIS STATEMENT -21- Long-term liabilities expected to be financed from governmental funds are accounted for in the general Long-Term Oebt Accounts Group, rather than Governmental Funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. C. Bases of Accounting The bases of accounting promulgated by the Uniform System of Accounts' relative to the recording of transactions in the respective funds Qf the town are as follows: (1) GOVERNMENTAL FUND revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable. (2) FIDUCIARY FUND - Trust and Agency Fund assets and liabilities are accounted for on the modified accrual basis. (3).TRANSFERS are recognized in the accounting period in which the interfund receivable and payable arise. Note 2: Changes in Accounting Principles There have been no changes in accounting principles. Note 3: PensiOn The town provides retirement benefits for substantially ail of its regular full-time employees through contributions to the New York State Employees' Retirement System. This system provides various plans and options to the participants, some of which requine employee contributions. Note 4: Indebtedness Details of Indebtedness are shown on the attached schedule on page Note 5: Combined Statements All current and prior year totals on Combined statements are for memorandum purposes only. No eliminations have been made for tnterfund revenues or expenses, or for liabilities reported in Long Term Oebt Account Group. Note 6: ComParative Data Prior year comparative figures are contained in this reporf for meqorandum, · purposes only. As stated in Note S, no eliminations have been made for inter- fund revenues of expensesor for liabilities reported in Long Term Oebt Account Group. Note 7~ Encumbrances Encumbrances outstanding in the amount of $9,500. have been reserved in fund balance account. Such encumbrances have not been recognizedas current year expenditures. ~23- ~ote 8: Audit report dated 9/26/84 issued by New York State in- cluded a comment regarding the order of payment of tax collections. Changes have been made to conform the Town's procedure to that recommended by the examiner. Subsequent to 2/14/85, payments to school districts have been 8o made as to limit their receipts to no more than 50% of the total collected. Note 9: It is suggested that all 1985 vouchers be submitted to the ac.counting department no later than 12/15/85 in order to be charged to the 1985 budget. Any budgeted amounts not ex- pended by that date will lapse. The accounting department needs the last 15 ds~s of the year to process the vouchers and finalize its accounts for closing purposes. Note 10: In response to new regulations promulgated by the State, the Town is in the process of drafting new Investment Policies. Such policies will require the securities pledged by the banks as collateral for Town deposits to be held by a custodial agent rather than by the pledging banks. -24-