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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 -1- 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. -2 - . 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. - 3- . 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. -4- 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. - 5 - 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 - 6- 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 -7 - 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. - 8- DOHERTY, BEALS 8< BANKS, P.C.