HomeMy WebLinkAbout2002 FIFD
RECEIVED
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2002
AUG 1 1 2003
South old Town Clerk
OHERTY
EALS_&
ANKS, P.C.
CERTIFIED PUBLIC
ACCOUNTANTS
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2002
CONTENTS
Independent Auditor's Report....... ............................... ............ .................................. .................. ............... ................... I
Balance Sheet .... ......................................... .... ................ ......................... ....................... .............................. ................. 2
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balance....................................... ............ .................................... ....................... ........... .................. 3
Combined Statement of Revenues I Expenditures, and
Changes in Fund Balance - Budget and
Actual - Special Revenue Fund.......................... ............ ..................................................... ..................... ......... .........4
Notes to Financial Statements.. ...... ........ ..................... ......................... ............................ ................. ............................ 5
DOHERTY, BEALS & BANKS, P.C.
DOHERTY, BEALS & BANKS, P.C.
CARL A.. BANKS, CPA
STACEY L. GUALTIERI, CPA
KATHLEEN A. STEAMER, CPA
EVELYN A. COOKE. CPA
DAVID J. MICELI, CPA
CERTIFIED PUBLIC ACCOUNTANTS
187 WILLIAMS STREET
POST OFFICE BOX 59
NEW LONDON, CONNECTICUT 08320
(880) 443.2033
FAX (B80) 444-7086
Board of Conunissioners
Fishers Island Ferry District
Fishers Island, NY 06390
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying general-purpose financial statements of the Fishers Island Ferry District, a component
unit of The Town of Southold as of and for the year ended December 3 I, 2002. These general-purpose financial
statements are the responsibility of the Fishers Island Ferry District's management. Our responsibility is to express an
opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes exanrining, on a test basis, evidence supporting the
amounts and disclosures in the [mancial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall [mancial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the
financial position of the Fishers Island Ferry District as of December 3 1,2002, and the results of its operations for the
year then ended in conformity with accounting principles generally accepted in the United States of America.
D~~~~S~C~
June 13, 2003
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FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT TOWN OF SOUTHOLD
BALANCE SHEET
AS OF DECEMBER 31, 2002
FUNDS ACCOUNT GROUPS
Special Capital Agency General General Long
ASSETS Revenue Projects & Trust Fixed Assets Term Debt
Cash and investments $ 443,979 $ $ 91,083 $ $
Other receivables 48,499
Due from grants 16,559
Due from primary government 519,041 28,719
Provisions to be made in future budgets 97,710
0 Land 41,717
0 Buildings 7,003,275
J:
'" Machinery and equipment 2,510,700
;Jl
-l
;< TOTAL ASSETS $ 979,579 $ 28,719 $ 139,582 $ 9,555,692 $ 97,710
to
'"
l>
r LIABILITIES AND FUND EQillTY
Ul
~ LIABILITIES
to Accounts payable $ 53,751 $ 29,846 $ $ $
l> Due to other funds 28,719 139,041
z
;A Other liabilities 541
Ul
" Bond anticipation notes 550,000
0 Deferred revenue 380,000
General obligations bonds payable 97,710
TOTAL LIABILITIES 462,470 579,846 139,582 97,710
FUND EQillTY
Investments in fixed assets 9,555,692
Fund Balances
Designated (551,529)
Undesignated 517,109 402
TOTAL FUND EQillTY 517,109 (551,127) 9,555,692
TOTAL LIABILITIES AND FUND EQillTY $ 979,579 $ 28,719 $ 139,582 $ 9,555,692 $ 97,710
See notes to financial statements.
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.
FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT OF TOWN OF SOUTHOLD
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2002
Special
Revenue
REVENUES
Operations
Charters
Airport
Mail
Theater
Rents
Interest
Property taxes
Interfund transfers
Other revenues
$ 1,466,257
44,840
8,500
17,552
15,212
28,701
5,855
330,000
75,416
TOTAL REVENUES
1,992,333
EXPENDITURES
Operations - ferry
Payroll
Office expense
Commissioner fees
Accounting
Theater
Airport
Mail
Insurance
Bond - principal and interest
Property tax
Repairs - ferry
Repairs - docks
New London terminal project
Social security
Health insurance
NYS retirement
Insurance claims
Interfund transfers
177,679
915,690
14,225
5,600
6,500
11,257
52,320
5,175
51,421
79,768
24,595
51,738
47,934
68,219
132,118
7,715
2,664
175,000
TOTAL EXPENDITURES
1,829,618
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
162,715
FUND BALANCE - BEGINNING
354,394
FUND BALANCE - ENDING
$ 517,109
See notes to financial statements.
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. DOHERTY, BEALS & BANKS, P.C.
Capital
Projects
$
402
175,000
25,000
200,402
1,916
250,524
252,440
(52,038)
(499,089)
$ (551,127)
FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT TOWN OF SOUTHOLD
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31,2002
VARIANCE
FAVORABLE
REVENUES BUDGET ACTUAL (UNFAVORABLE)
Operations $ 1,575,000 $ 1,466,257 $ (108,743)
Charters 35,000 44,840 9,840
Airport 18,600 8,500 (10,100)
Mail 17,600 17,552 (48)
Theater 15,000 15,212 212
Rents 10,000 28,701 18,701
Interest 5,000 5,855 855
Property taxes 330,000 330,000
Other revenue 75,416 75,416
TOTAL REVENUES 2,006,200 1,992,333 (13,867)
EXPENDITURES
Operations - ferry 220,000 177,679 42,321
Payroll 916,000 915,690 310
Office expense 14,500 14,225 275
Commissioner fees 6,000 5,600 400
Accounting 7,500 6,500 1,000
Theater 15,000 11,257 3,743
Airport 53,000 52,320 680
Mail 5,400 5,175 225
Insurance 55,000 51,421 3,579
Bond - principal and interest 104,800 79,768 25,032
Property tax 26,000 24,595 1,405
Attorney's fees 5,000 5,000
Repairs - ferry 70,000 51,738 18,262
Repairs - docks 120,000 47,934 72,066
Insurance claims 4,000 2,664 1,336
Social security 68,500 68,219 281
Health insurance 132,500 132,118 382
NYS retirement 8,000 7,715 285
Interfund transfers 175,000 175,000
TOTAL EXPENDITURES 2,006,200 1,829,618 176,582
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES $ $ 162,715 $ 162,715
FUND BALANCE - BEGINNING 354,394
FUND BALANCE - ENDING $ 517,109
See notes to financial statements.
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DOHERTY, BEALS 8< BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2002
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fishers Island Ferry District operates through the Town of South old as an organization exempt from income
tax. It is a component unit of the Town of Southold. The Fishers Island Ferry District's function is to provide
residents of Fishers Island with transportation to and from Fishers Island, New York, and New London,
Connecticut.
Fund Accounting
The District uses funds and account groups to report on its financial position and the results of its operations.
Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating
transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, however, is a
financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded
in the funds because they do not directly affect net expendable available financial resources.
The District records its transactions in the fund types and account groups described below.
Fund Categories
Special Revenue Fuud - used to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specific purposes.
Capital Projects Fuud - used to account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by special assessment funds and trust
funds).
Trust and Agency Funds - used to account for money received and held in the capacity of trustee,
custodian or agent. These include expendable trusts, non-expendable trusts, and agency funds.
Account Groups
Account Groups are used to establish accounting control and accountability for general fixed assets and
general long-term debt. The two account groups are not "funds." They are concerned with measurement
of financial position and not results of operations.
The General Fixed Assets Account Group - used to account for land, buildings, improvements other
than buildings, and equipment utilized for general government purposes.
The General Loug- Term Debt Account Group - used to account for all long-term debt.
Basis of Accounting
The Fishers Island Ferry District uses the modified accrual basis of accounting. Under this basis of accounting,
revenues are recorded when measurable and available. Available means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period. Material revenues that are accrued
include state and federal aid, sales tax and certain user charges.
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DOHERTY, BEALS Be BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2002
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Accounting (continued)
Expenditures are recorded when incurred except principal and interest on indebtedness are recognized when due,
and compensated absences, such as vacations and sick leave, which vests or accumulates, are charged as an
expenditure when paid.
Use of Estimates
The preparation of financial statements in confonnity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial
statements, and revenue and expenses during the reporting period. Actual results could differ from those
estimates.
2. PROPERTY, PLANT AND EQillPMENT
Property, plant and equipment are recorded at cost and consist of the following classes of assets:
Land $
Docks and dolphins
Vessel - Munnatauket
Vessel - Race Point
Buildings and improvements
T enninal expansion
Office equipment
Tenninal equipment
41,717
2,117,745
904,357
1,499,850
3,774,759
1,110,771
52,720
53,773
TOTAL PROPERTY, PLANT AND EQillPMENT
$ 9,555,692
3. BONDS PAYABLE
Race Point Debt Service
Serial Bonds maturing and payable annually with interest at 9.1 % per annum.
Net book value of the Race Point is $693,211.
$ 90,000
Pension System Serial Bonds
Serial Bonds maturing and payable annually with interest at 8% per annum.
7,710
$ 97,710
The following are the maturities of bonds payable for each of the next three years.
2003
2004
2005
$ 35,140
32,570
30,000
$ 97,710
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DOHERTY. BEALS 8< BANKS. P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2002
3. BONDS PAYABLE (Continued)
Bond Anticipation Note
Bond anticipation notes (BAN's) are generally accounted for in the capital projects funds. The notes or renewal
thereof may not extend more than two years beyond the original date of issue unless a portion is redeemed within
two years and within each 12-month period thereafter.
State law requires that BAN's issued for capital purposes be converted to long-term obligations within five years
after the original issue date. However, BAN's issued for assessable improvement projects may be renewed for
periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of
principal are made.
Description
Amount
Interest
Rate
To Be Redeemed in 2003
Budget
Appropriations Bonds
New London Terminal Project
$ 550,000
2.47%
$
25,000
$ 525,000
4. RETIREMENT SYSTEM
Plan Description
The Fishers Island Ferry District, a component unit of the Town of Southold, participates in the New York
Employee's Retirement System, the New York State Policemen's and Firemen's Retirement System and the
Public Employee's Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement
systems. The Systems provide retirement benefit as well as death and disability benefits. The New York State
Retirement and Social Security Law (NYSRSSL) govern obligations of employers to contribute and benefits to
employees. As set forth in the NYSRSSL, the Comptroller ofthe State of New York (Comptroller) serves as sole
trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations
for the administration and transactions of the business of the Systems and for the custody and control of their
funds. The Systems issue a publicly available financial report that includes [mancial statements and required
supplementary information. That report may be obtained by writing the New York State and Local Retirement
System, Gov. Alfred E. Smith State Office Building, Albany, NY 12244.
Funding Policy
The Systems are noncontributory except for employees who joined the New York State and Local Employees'
Retirement System after July 27, 1976, who contribute 3% of their salary. Under the authority ofthe NYSRSSL,
the Comptroller shall certify annually the 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.
The Town of South old is required to contribute at an actuarially determined rate. The required contributions for
the current year and two preceding years were as follows:
2002
2001
2000
$ 99,200
61,327
32,226
$ 65,087
63,568
86,149
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2002
4. RETIREMENT SYSTEM (Continued)
The Town's contributions made to the Systems were equal to 100% of the contributions required for each year.
The districts portion of the contribution was $7,715 in 2002.
Since 1989, the Systems' billings have been based on Chapter 62 ofthe Laws of1989 of the State of New York.
This legislation requires participating employers to make payments on a current basis, while amortizing existing
unpaid amounts relating to the Systems' fiscal years ending March 31, 1988, and 1989, (which otherwise were to
have been paid on June 30, 1989, and 1990, respectively) over a 17-year period, with an 8.75% interest factor
added. Local goverrunents were given the option to prepay this liability. The Town elected to make the full
payment on December 15,1993, by issuing serial bonds to replace this debt.
5. POST RETIREMENT BENEFITS
In addition to providing pension benefits, the District provides health insurance coverage and survivor benefits for
retired employees and their survivors. Substantially, all District employees may become eligible for these benefits
if they reach normal retirement age while working for the District. Health care benefits and survivors' benefits are
provided through either an insurance company or a self-funded plan whose premiums are based on the benefits
paid during the year. The District recognizes the cost of providing benefits by recording its share of insurance
premiums or the actual benefits paid from the Special Revenue Fund as expenditures in the year paid. During the
year $132,118 was paid on behalf of? retirees and 14 active employees and is recorded as expenditures in the
Special Revenue Fund. The cost of providing benefits for retirees is not separable from the cost of providing
benefits for active employees.
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DOHERTY, BEALS 8< BANKS, P.C.