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HomeMy WebLinkAbout1983TOWN OF SOUTHOLD AUDIT RE~ORT DECES~ER 31, 1983 E. F. W~,'~.nOR, C.P.A., P.C. RECEIVED JUN 1 9 l)84 Town Clerk Southold June 18, 1984 Town Board Town of Southold 53095 Main Road Southold, NY 11971 Members of the Board: We have examined the combined financial statements of the Town of Southold for the year ended December 31, 1983. Our examination was made in accordance with generally accepted auditing standards as set forth in OMB Circular A-102, and accordingly, included such tests of the accounting records, tests of the internal financial control systems, and other such auditing procedures as was consid- ered necessary in the circumstances. With regard to Federal Funds, please note that the Town's fi- nancial 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 proce- dures have been established to meet the objectives of the programs. Financial reports submitted to County and Federal governments contained accurate and reliable financial information. Our examination was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The Supplementary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such informa- tion has been subjected to the auditing procedures applied in the ex- amination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic finan- cial statements taken as a whole. The G.A.A.F.R. differs in certain respects from generally accepted municipal accounting principles (G~%P) as follows: GA3~P provides for recognition of all revenue susceptible to accrual, i.e., measurable and available to meet ex- penditures incurred in cu:rent operations. 2. GAAP provides for expenditures to be recognized when Ii- abilities are incurred and that encumbrances be recognized as expenditures. GAAP provides that capital projects be accounted for on a full accrual basis of accounting, reflect- ing only the actual fiscal activity of the fund with the nominal accounts being closed at the end of the fiscal year to fund balance. In our opinion, with the exception of the aforementioned dif- ferences from GAAP, the combined financial statements present fairly the financial position of the Town of Southold at December 31, 1983, and the results of its operations for the year then ended in confor- mity with generally accepted accounting principles applied on a basis consistent with that of the preceeding year. Respectfully submitted, ELAINE F. KALDOR Certified Public Accountant EFK:mm INDEX Statements Combined Balance Sheet- Ail Fund Types & Account Groups Combined Statement of Revenues, Expenditures & Changes in Fund Balance - All Governmental Fund Types Combined Statement of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual All Governmental Fund Types Combining Statements of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual General Fund Special Revenu~ Fund Special Assessment Combining General Special Balance Sheets Funds Revenue Funds Combining Expenses General Special Statement of Revenues, & Changes in Fund Balance Funds Revenue Funds 3 4 5 6 7 8 INDEX Schedules Schedule of 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 Notes to Report 11 12 13 14 14 15 16 16 17 4 19 TOWN OF SOUTHOLD COMBINED BALANCE SHEETS ALL FUND TYPES & ACCOUNT GROUPS DECEMBER 31, 1983 Assets Cash State & Federal Receivables Due from Other bunds Due from Other Governments Deferred Assessments Land Buildings Equipment & Machinery Amount to be Provided for Long Term Debt Total Assets Governmental Fund Types Special Capital General Revenue Projects $253,544 $338.510 $204,598 2,835 1,125 4,351 960 80,186 54,000 $258,855 $421)531 $259,723 Fiduciary Fund T~pes Account Grpups ~emorandum Only Special Trust & General Long Term Total Total Assessment ~3ency Fixed Assets Debt 12/31/83 12/31/82 $59,505 $ 856,157 $ 6IG,352 3,960 Liabilities & Fund Balances Liabilities Accounts Payable Due to Other Funds Due to Other Governments Due to Pension System Deposits & Deferrals Obligations Payable 19,000 33,043 3,649 702 Total Liabilities } 19~000 $ 36,692 $ 702 Pund Balances Investment in General Fixed Assets Reserved for Encumbrances Other Reserves 6,600 37,567 74,314 259,021 Appropriated - Ensuing Year's Budget 160,000 174,204 Unappropriated 73,255 98t754 Total Fund Balances $239~855 $384~83~ Total Liabilities & Fund Balances $258.85~ $4.31,531 $1,687 46,058 5,719 7,728 $59,505 S25R,72~ }1,687 $59,505 -0~ 1,129,400 $4,648,8~5 $4,648)825 $1,129,400 $ 52,043 $ ~,985 4.351 1!,462 46,058 3!,970 5,719 5,237 7,728 12,395 1~246,986 795,249 $4,648,825 $4,280,139 44,187 45,246 333,335 G0,516 334,204 460,517 172~009 (314,859) $5)532,540 $4,531,559 $6,779~526 $5~326)808 Notes to Financial Statements are an integral part of this Statement. TONN OF SOUTHOLO COMBINED STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES ~ANUARY 1 - DECEMBER 31, 1983 Real Property Taxes Real Property Tax Items Departmental Income Intergovernmental Charges Use of Money & Property Licenses & Permits Fines & Forfeitures Sale of Property 6 Loss Compensation Miscellaneous Local Sources State Aid Federal Aid Interfund Transfers Proceeds o~ Obligations Expenditures General Government Support Public Safety Health Transportation Economic Assistance & Opportunity Culture & Recreation Home & Community Services Employee Benefits Oebt Service Interfund Transfers Total Expenditures Excess Revenue Over Expense (Expense Over Revenue) Fund Balance January 1, 1983 Adjustment of Prior Year Accruals Fund Balance December 31, 1983 Governmental Fund Types Special Capital Special General Revenue Projects Assessment $2,698,462 $1,285,520 $ $],872 29,]05 54,000 27,642 185,902 76,349 467,782 80,963 $3)626,112 $2,3]4,226 $1~376,586 $1r872 725,614 1,498,505 33,100 7,233 2]2,866 ],244,216 118,234 12,298 133,792 162,051 310,273 275,899 669,222 756,058 228,313 17,216 1.872 80~963 $3,684,898 $2t013)499 $ 787,456 $1,872 (58,786) 100.727 589,130 -0- 298,641 280,639 (327,8Bg) -0- -0- 3,473 (2~250) -0- $ 239,856 $ 384,839 $ 259~021 -0- Memorandum Only Total Total 12/3]/83 12/3]/82 $3,985,854 $3,443,441 ]5,556 13,175 194,171 108,310 960 2,472 235,029 291,520 42,454 29,728 18,906 13,32I 54,467 24,424 ]39,418 83,167 27,642 26,949 726,194 572,202 467,782 442,715 80,963 56,583 1,129,400 -0- $7,118,796 $5~108~007 725~614 660,143 1,531,605 1,478,718 7,233 6,717 1,575,316 1,342,879 146,090 142,281 162,051 167,945 1,255,394 658,072 984,371 872,355 19,088 10,297 80~963 56,583 $6~487~725 $5~385,990 63],071 (277,983) 291,421 535,192 1~223 (5,788) $ 883~715 $ 25I~421 Notes to Financial Statement are an integral part of this Statement. TOMN OF SOUTUOLD COMBINED STAT£~ENT OF REYENUES~ EXPENDITURES & CHANGES IN FUND BALANCES BUDGET & ACTUAL - ALL GOVERNMENTAL FUND TYPES JANUARY ] - DECE~B£R 31, ]983 Peal Property Taxes Real Property Tax Items Departmental Income Intergovernmental Charges U~e of Money & Property Licenses & Permits Fines & Forfeitures Sale of Property & Loss Compensation Miscellaneous Local Sources Interfund Revenues State Aid Federal Aid Interfund Transfers Proceeds of Obligations Total Revenues Appropriated Fund Balance Total Governmental Fund Type Budgets Special Capital Special Revenue ~rojects Assessment $2,698,462 $1,885,520 $ $ ],872 $3,985,854 $3,985,854 ]3,000 13,000 15,556 78,400 32,895 22,995 ]34,290 ]94,17] 1,000 l,OOD 960 121,360 65,392 186,752 235,029 34,500 34,500 48,454 14,600 14.600 18,906 24,100 24,100 54,467 35,600 25,995 56,33] ]17,826 139,418 2,500 ]6,000 18,500 27,642 402,500 187,800 222,048 812,348 726,194 745,436 ],415,250 2,160.686 467,782 80,263 80,963 80,963 $3,425,922 $2,359,038 $3,013,862 $ 1.872 $8,800,694 ~7,118,79~6 292,145 171.939 -D- -0- 464.084 $3.718,067 $2,530,977 ~ 5 1,872' ~ Expenditures · $ 6,600 General Government Support $ 736,196 $ $ $ $ 736,196 $ 725,614 Public Safety 1,513,000 33,100 1,546,100 1,831,605 Health 7,370 7,370 7,233 Transportation 213,295 1,335,825 175,138 ],724,258 1,575,316 25,509 Economic Assistance & Opportunity 12,500 133,792 146,292 146,090 Culture & Recreation 162,820 162,820 162,05] Home & Community Services 314,036 663,424 2,838,724 3,816,184 1,255,394 12,058 Employee Benefits 758,850 252,516 1,011,366 984,371 Debt Service 31,357 ],872 33,229 19,088 Interfund Transfers 80~263 80,963 80,963 Total Expenditures $3,718,067 $2,530,977 $3,013,862 $ 1,872 $9,264,778 $6~487,725 $ 44,167 Excess Revenue Over Expense (Expense Over Revenue) (292,]45) (171,939) -0- -0- (464,084) 631,071 $ (44~187) Fund Balances January 1, 1983 298,641 280,639 (327,859) *0- 25],4E1 251,421 Adjustment of Prior Year Accruals -D- 3~473 (2~250) -0- __ 1~223 lt2~3 Fund Balance December 31, 1983 6~49~ $ 112~]73 $ (330~109 -0- $ (211~440) $ 883t715 2,556 59,88I (40) 48,277 7,954 4,3D6 )0,367 21,992 9,142 ~6,154) (1,622,904) (E6,875) 5!1~651,898) 5 3,982 137 202 769 2,548,732 26,995 14,14] $2~732~886 $1~050,988 Notes to Financial Statement are an integral part of this statement. TOWN OF SOUTHOLD STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCES BUDGET AND ACTUAL - SPECIAL REVENUE FUND TYPES JANUARY 1 - DECEMBER 31, 1983 Revenues Real Property Taxes Departmental Income Use of Money & Property Miscellaneous Local Sources Interfund Revenues State Aid Federal Aid Total Revenues Appropriated Fund Balance Total Budget Actual Variance ~avorable Encumbrances :{Unfav.) $1,285,520 $1,285,520 $ -0- 32,895 31,855 (1,040) 65,392 86,420 21,028 25,995 29,105 3,110 16,000 27,642 11,642 187,800 185,902 (1,898) 745,436 467,782 (277,654 $2,359,038 $2,114,226 171,939 $2,530,977 $ (244,812) Expenditures Public Safety Transportation Economic Assistance & Opportunity Home & Community Services Employee Benefits Debt Service Interfund Transfers Total Expenditures Excess Revenue Over Expense (Expense Over Revenue) Fund Balances January 1, 1983 Adjustment of Prior Year Accrual Fund Balance December 31, 1983 $ 33,100 $ 33,100 $ $ -0- 1,335,825 1,244,216 25,509 66,100 133,792 133,792 -0- 663,424 275,899 12,058 375,467 252,516 228,313 24,203 31,357 17,216 14,141 80,963 80,963 -0- $2,530,977 $2,013,499 $ 37,567 $ 479,911 $ (171,939) $ 100,727 280,639 280,639 3,473 3~473 $ 112,173 $ 384,839 $ 37,567 $ 235,099 Notes to Financial Statement are an integral part of this Statement. Tt)WN OF SOUTHOLD STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCES BUDGET & ACTUAL - CAPITAL & SPECIAL ASSESSMENT FUNDS JANUARY I - DECEMBER 31, 1983 Revenues Real Property Taxes Departmental Income Use of Money & Property Local Sources State Aid Interfund Transfers Proceeds of Obligations Federal Aid Total Revenues Capital Fund Budget Actual Variance $ 22,995 $ 26,363 $ 3,368 9,511 9,511 56,331 54,000 (2,331) 222,048 76,349 (145,699) 80,963 80,963 -0- 1,216,275 1,129,400 {86,875} 1,415,250 -0- {1,415,250) $3,013,862 $1,376,586 $(1,637,276} Special Assessment Fund Budget. Actual Variance $1,872 $1,872 -0- $1~872 $1,872 -0- Expenditures Transportation' Home & Community Services Debt Service Total Expenditures Excess Revenue Over ExPenses (Expense Over Revenue) Fund Balance.January 1,-1§83 ' -- Adjustment of Prior Year Receivable Fund Balance December 31, 1983 $ 175,138 $ 118,234 2,838,724 669,222 $3,0~3,862 $ 787,456 -0- $ 589,130 (327,859) (327,859) (2,2so) (2,2so) (330,109) $ 259,021 $ 56,904 2,169,502 $2,226,406 $ 589,130 Notes to Financial Statement are as integral part of this statement. $1,872 $1,872 -0- $1,872 $1~872 -0- -0- -0- -0- -0- -0- TOWN OF SOUTHOLD COMBINING BALANCE SHEETS ' ALL GENERAL FUNDS DECEMBER 31, 1983 Assets £ash ~ue from Other Funds Due from Other Governments Memorandum Only Town Part Totals Wide Tqwn 12/31/83 12/31/82 $143,203 $110,341 $253,544 $285.191 4,351 4,351 11,459 960 ... 960 1,991 Total Assets $148~514 $110,341 $258~855 $298,641 Liabilities & Fund Balances Accounts Payable Total Liabilities 19,000 $ -0- $ 19,000 $ -0- 19,000 $ -0- $ 19~000 $ -0- Fund Balances Reserved for Encumbrances Unreserved - Appropriated for Ensuing Year's Budget - Unappropriated Total Fund Balances $ 6,600 $ -0- $ 6,600 $ 37,145 100,000 60,000 160,000 256,000 22~914 50~341 73~255 6~496 $129,514 $110~341 $239~855 $298,641 Total Liabilities & Fund Balance $148)514 $110~341 $258~855 $298,641 Notes to Financial Statement are an integral part of this statement. -7~ Federal Highway Revenue Fund Sharing Assets Cash $259,987 $ 73,629 State & Federal Receivables Due from Other Funds Due from Other Governments Total Assets $259,987 $ 73,629 TOWN OF SOUTHOLD COHIBTNING BALANCE SHEET ALL SPECIAL REVENUE FUNDS DECEMBER 31, 1983 Special Delinquency Memorandum Only Grant Nutrition Diversion Rome Aid Totals Fund Fund Program Program 32/31/83 12/31/82 $ 1,457 $ 3,381 $ 56 $338,510 $267,617 2,B35 2,835 3 66~241 11,215 2,730 80~186 23~276 $ 67~698 $ 17,431 -0- $ 2~786 $421,531 $290~896 Liabilities & Fund Balances Liabilities Account Payable Deferrals Due to Other Funds Due to Other Governments $ 17,468 Total Liabilities $ 17~468 -O- Fund Balances Reserved for Encumbrances $ 25,510 $ 12,057 Reserve for CHIPS 74,314 Appropriated - Ensuing Tear's Budget 77,684 30,000 Unreserved 65,071 31,572 Total Fund Balance $242~519 $ 73~629 Total Liabilities & Fund Balances $259,987 $ 73~629 $ $ 15,575 $ $ 33,043 $ 4,713 3,578 1,118 2,031 500 3,649 3 $ $ $ 37,567 $ 8,100 74,314 60,517 66,880 174,204 184,323 (175) 2,286 98,754 27~699 66t580 $ (175) -0- $ 2~886 $384,B39 $280,639 67)698 $ 17~431 -0- $ 2)786 $421)531 $290~896 Notes to Financial Statement are an integral part of this statement. TO~N OF SOUTNOLD STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS JANUARy I - DECEMBER 31, 1983 Real Property Taxes Departmental Income Use of Money & Property Miscellaneous Local Sources Interfund Revenues State Aid Federal Aid Interfund Transfers Total qevenues General Government Support Public Safety Transportation Economic Assistance & Opportunity Culture & ~ecreation Home & Community Service Employee 9enefits Debt Service Interfund Transfers Total Expenditures Excess Revenue 0ver Expense {Expense Over Revenue} Fund Balance January 1, 1983 Adjustment of Prior Year Accruals Fund Balance December 31, 1983 Federal Special Delinquency H~e Highway Revenue Grant Nutritiom Diversion Aid Fund Sharing Fund Fun~ Program Program Memorandum Only Totals for Years Ended 12/31/83 12/~/82 $1,285,520 31,855 79,517 6,511 392 12,384 27,642 105,484 80,418 11,779 148,667 281,239 26,097 16,721 $1,285,520 $1,024,125 31,858 26,255 86.420 94,888 29,105 27,261 27,642 26,949 185,902 188,134 467,782 367,715 -0- 25~983 $1)522~326 $ 155~178 $ 281~239 $ 138,762 -0- $ 16,721 $2~114,226 $1,781,310 $ $ $ 33,100 1,244,216 39,888 217,998 222,304 8,800 8,416 27)000 53~963 $1,502,320 $ 135,367 $ 217,99~ 20,006 19,811 63,241 222,513 53,818 3,339 $ 242)51g L 73,629 $~ 66,580 $ s $ -o- . $ 31 33,100 48,000 1,244,216 1,069,882 133,792 133,792 131,380 -0- 3,829 18,013 275,899 241,814 6,009 228,313 200,882 17,216 6,825 80,963 __56~g83 139,801 -0- $ 18,013 $2,0~3,dgg $1,756,226 (l,039) -0- (1,292) 100,727 25,084 984 (15) -0- 280,639 255,556 (180) 15 3~578 __ 3t473 -0- (175) -0- $ 2,286 $ 384,839 $ 280,639 Notes to Financial Statement are an integral part of this statement. .TOWN OF SOUTHOLD DETAIL OF INDEBTEDNESS DECEMBER 31, 1983 Bond Anticipation Original Notes Issue Maturity Interest Rate Paid During Year Outstanding 12/31/83 Road Improvement 4/80 4/84 Landfill Equipment 5/80 4/85 Highway Equipment 5/81 5/86 Land Acquisition 3/82 3/87 Front End Loader 6/82 6/87 Landfill Purchase 12/82 12/87 Wastewater Treatment 6/83 6/84 Landfill Building 11/83 11/88 8.50 $ 1,600 8.50 15,000 8.50 15,600 8.25 19,000 8.73 11,400 6.20 21,000 5.73 -0- 5.58 -0- 1,600 27,000 46,800 76,000 45,600 84,000 250,000 600,000 Total. $83,600 $1,131,000 Notes to Financial Statement are an integral part of this statement. -11- -FISHEB'S ISLAND FERRY DISTRICT COMBINED BALANCE SHEET BECEMBEB 31~ 1983 Assets Cash Due from Other Funds Amount to be Provided for Long Te~ Debt Total Assets Liabilities ~ Fund Balance Deposits 8eld Serial Bonds Payable Total Liabilities Long Term General Capital Trust & Debt Account Fund Fund Agenc~ Stoup $ 770,155 $ 188,669 $ 7,595 $ 465,000 $ 770,155 $ 188)669 $ 7,595 $ 465,O00 Memorandum Only Totals $ 966,419 $ 568,022 46,483 465,000 490~D00 $1,431,419 $1,104)505 $ 7,595 $ 7,595 $ 7,4D3 $ 465~000 465)0Q0 490,00~ -O- -0- $ 7 5~95 $ 465~00D $ 472~585 $ 497~403 Fund Balance Reserved $ 22,71g Unreserved 747~436 Total Fund Balances $ 770~155 $ 188,669 $ 188,669 -O- -0- $ 188~669 $ 7~595 $ ¢65,000 Total Liabilities & Fund Balance $ 770~155 $ 211,388 $ 60,158 747~436 __646~944 L958)824 $ 607,102 FISHER'S ISLAND FERRY DISTRICT COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE JANUARY 1 - DECEMBER 31, 1983 Revenues Real Property Taxes Department Income Use of Honey & Property Sale of Property & Loss Compensation Interfund Transfers Gifts & Donations State Aid Total Revenues General Capital Fund Fund 124,293 $ 638,736 60,802 268 47,062 $ 871,161 $ 1,584 187,085 188,669 Memorandum Only Totals for Years Ending 12/31/83 12/31/82 $ 124,293 $ 155,000 638,736 629,194 62,386 57,513 268 -0- 47,062 93,900 187,085 -0- -0- 223,617 $1,059,830 $1,159,224 Expenditures Personal Services Contractual Expense Capital Outlay Employee Benefits Debt Service Principal Interest Interfund Transfers Total Expenditures $ 58,395 521,958 12,488 14,331 25,000 28,240 $ 660,412 $ 658 47,062 47,720 $ 58,395 $ 55,712 521,958 647,478 13,146 229,235 14,331 18,773 25,000 25,000 28,240 29,690 47,062 -0- $ 708,132 $1,005,888 Excess Revenues Over Expense (Expense Over Revenues) Fund Balances January 1, 1983 Prior Year Adjustments Fund Balances December 31, 1983 $ 210,749 $ 140,949 $ 351,698 $ 153,336 559,406 47,696 607,102 407,283 -0- 24 24 46,483 $ 770,155 $ i88,669 $ 958,824 $ 607,102 Notes to Financial Statement are an integral part of this statement. -13- · TOWN OF SOUTHOLD DEPARTMENTAL BANK RECONCILIATIONS DECEMBER 31, 1983 T~wn Clerk - Judith T. Terry Bank Balance 12/31/83 Add: Deposit in Transit Less: Outstanding Checks Ledger Balance 12/31/83 11,304.71 908.70 12,213.41 Tax Receiver - George Mellas Bank Balance 12/31/83 Add: Deposit in Transit Less: Outstanding Checks $2,940,810.39 2,682.60 $2,943,494.99 Ledger Balance 12/31/83 Add: 12/31/83 Interest $2,940,911.63 2,581.36 $2,943,492.99 Notes to Financial Statement are an integral part of this statement. -14- TOWN OF SOU?HOLD JUSTICES OF THE PEACE - BANK RECONCILIATIONS DECEMBER 31, 1983 Justice Tedeschi Bank Balance 12/31/83 Add: Deposit in Transit Less: Outstanding Checks Bank Error on Deposit Justice's Ledger - Bail Money $4,315.00 - Due to Comproller 1,527.00 - Civil Fees Pending 3.00 $7,351.00 1,478.00 .28.00 $5,845. O0 $5,845.00 Justice Price Bank Balance 12/31/83 - Checking Account - Bail Account Add: Deposit in Transit Less: Outstanding Checks Justice's Ledger - Bail Money $ 970.00 - Partial Fine Paid 50.00 - Due to Comptroller 2,044.00 $2,094.00 970.00 $3,064.00 $3,064.00 $3,064.00 Justice Edwards Bank Balance 12/31/83 $ 250.00 Add: Deposit in Transit 335.00 Less: Outstanding Checks -0- Justice's Ledger - Due to Comproller $ 335.00 - Bail Money 250.00 $ 585.00 $ 585.00 Notes to Financial Statement are an integral part of this statement. -15- ~OWN OF SOUTHOLD ~IDUCIARY BANK RECONCILIATIONS DECEMBER 31, 1983 ~ayroll Account Bank Balance 12/31/83 Add: Deposit in Transit Bank Error Less: Outstanding Checks $ 82,617.35 14,87 82,632.22 Ledqer Balance $ -0- Supervi sot' s Tax Account Bank Balance 12/31/83 Add: Deposit in Transit Less: Outstanding Checks $10g,073.25 109,073.25 Ledger Balance $ -0- Notes to Financial Statement are an integral part of this statement. -16- TOWN OF SOUTHOLD NOTES TO FINANCIAL STATEMENT DECEMBER 31, 1983 Note 1: Summary of Significant Account Policies A. Fund Accounting The accounts of the town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into three basic fund types: Governmental Funds {1) The General Fund- to account for all financial resources except those required to be accounted for in another fund. (2) Special Revenue Funds - to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes. (3) Capital Projects Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds, Special Assessment Funds, and Trust Funds). (4) Special Assessment Funds - to account for the financing of public improvements of services deemed to benefit the properties against which special assessments are levied. Proprietary Funds - None Fiduciary Funds (5) Trust and Agency Fund - to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include, (a) Expendable Trust Funds, (b) Nonexpendable Trust Funds, {c) Pension Trust Funds, and {d) Agency Funds. B. General Fixed Assets and Lonq Term Debt Acquisitions of equipment and capital facilities are treated as expenditures in the various funds of the town,and are also reflected in the general fixed asset group of accounts. General Fixed Assets consisting of land, buildings, improvements and equipment are valued at historical costs or estimated historical cost if actual cost is not available. No depreciation has been provided on General Fixed Assets. -17- Long-term liabilities expected to be financed from governmental funds are accounted for in the general Long-Term Debt 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 of the town are as follows: 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 all 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 11. 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 Debt Account Group. Note 6: Comparative Data Prior year comparative figures are contained in this report for memorandum purposes only. As stated in Note 5, no eliminations have been made for inter- fund revenues of expensesor for liabilities reported in Long Term Debt Account Group. Note 7: Encumbrances Encumbrances outstanding in the amount of $44,167 have been reserved in fund balance account. Such encumbrances have not been recognized as current year expenditures. 18 No~8 The town has been audited by Nm York State for years ended Dec~,i~_r 31, 1981 and 1982. To date, the Audit Report has not ~--~.n received, but scme of the cc~rents and suggestlc~s made at the Exit Confereno~ are as follows: (1) Monthly bank reconciliations should be done by an (mployee who does not issue' checks f£~,, the acco~%t. (2) Employees in the Bookkeeping Depazbl~nt shoul~ be b~'~led. (3) Although the key to the check signing machin~ is kept in 'a locked file, the key to this file is not always in a locked file or safe. (4) Other than Payroll and Trust & Agency transfers, all checks over $2,000.00 should be hand signed by the Supervisor. (5) Although minimal balances are maintained in checking accotmts, these accounts should be transfezz=d to interest earning accounts. (6) Ordering of sUpPlies should be c~,~leted by early December to reduce the accruing and encurabering of bills at the end of each year. (7) Tax m~ties must be paid out rafably to the varying Districts. The To~n should not satisfy its own 'receivable in total before paying out tax monies to the Districts. (8) Competitive bidding should be held for Nutrition Center's milk purchases even though there isonly one local dairy. (9) Recording of Fixed Assets should be handled by the Town rather than America~ Appraisal Co. to provide for th~ timely updating of the records. (10) (ll) Accrued Vacatic~ and sick pay and amounts due the Retirement System should be shown in the Lc~g Term Debt account Police and Hig~ay department gas pumps should be -visible the offices to prevent any unauthorized use of gas.