HomeMy WebLinkAbout2006
Southold Fire District
PO Box 908
Southold, New York 11971
631-765-3385
RECEIVED
JUL - 3 2007
Southold Town C1er'
July 3, 2007
Mrs. Elizabeth Neville
Southold Town Clerk
Main Road
Southold, New York 11971
Re: Audit of the Southold Fire District
December 31, 2006
Dear Ms. Neville:
.
Enclosed please find our most recent completed independent auditors report
and management letter for the year ended December 31, 2006 for your records.
Thank you for your attention to this matter.
Sincerely yours,
Karen A. Helinski, CPA
District Treasurer
Ene.
Hand Delivered
COUGHLIN FOUNDOTOS
o 0
CULLEN & DANOWSKI. UP
VINCENT D. CULLEN. CPA
lAMES E. DANOWSKI. CPA
IILL S. FICHTER. CPA
CHRISTOPHfIZ V REINl} CPA
PETER F. RODRIGUEZ. CPA
STFPHEN I WAGNER. CPA
ALAN YU. CPA
February 1, 2007
The Board of Fire Commissioners
Southold Fire District
Southold, New York
Dear Members of the Board:
In planning and performing our audit of the financial statements of the Southold Fire District (District) as of and for the
year ended December 31, 2006, in accordance with auditing standards generally accepted in the United States of
America, we considered Southold Fire District's internal control over financial reporting (internal control) as a basis for
designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not
express an opinion on the effectiveness of the District's internal control.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's
ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial
statements that is more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
entity's internal control.
Our consideration of internal control was for the limited purpose described in the first paragraph and would not
necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses.
We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above.
However, during our audit we became aware of several matters that are opportunities for strengthening internal
controls and suggestions concerning those matters. The following paragraphs summarize our comments and
suggestions concerning those matters.
STATUS OF PRIOR YEAR COMMENTS
Based on the current year audit, the following comment from the prior year audit was found to have been adequately
addressed by District personnel:
. The District implemented procedures over the receipt of goods
T:\OfIice\20,OOO's\25400\2006\Mgmt Letter 2006.doc
1650 ROUTE 112, PORT JEFfERSON STATION. NEW YORK 11776-3060
o 0
PHONE: 631-473-3400 . FAX: 631-473-4863 . WWWCFCD.COM
Southold Fire District
For the Year Ended December 31,2006
The following comment included in the prior year management letter still remains pertinent for the year ended
December 31, 2006:
District Credit Card
The District has muiti-use credit cards issued in the District's name for use by its officials for travel expenses incurred
in the performance of their duties. The claims submitted by the credit card company must be paid within a reasonable
amount of time to avoid incurring unnecessary service charges and/or interest charges. In conjunction with timely
remittance of credit card invoices, the Board is required to audit all claims submitted by the credit card company and
to do so, adequate documentation in the form of detailed receipts is necessary to substantiate the charges.
During our prior year's audit and again during the current year, we noted that charges to the District's credit card were
not always supported by adequate documentation.
We recommend that the District require that detailed receipts be received to support all charges on the District's credit
card. Attaching detailed receipts would allow the District to demonstrate that credit card charges are legitimate
District expenditures and that the goods are actually received.
CURRENT YEAR COMMENTS
Fixed Assets
The responsibility of safeguarding the District's investment in fixed assets is important to sound fiscal management.
The responsibilities can only be discharged through adequate fixed asset accounting. In addition to maintaining this
record for accountability purposes, the District also needs this information for financial reporting and insurance
purposes.
During the current year audit, we noted that the following with regards to fixed assets:
. The District does not have a capitalization policy.
. The additions list maintained by the District includes only the name of the equipment. No other identifying
information such as purchase price or location is on this list.
. Two instances in which items were not tagged.
. The District maintains the asset values at replacement cost.
. One instance in which a washer and dryer were not included on the current year additions list.
We recommend that the Board consider having an independent appraisal of its fixed assets in the GASB format. This
format will present the District's assets at cost, which is required by generally accepted accounting principles. The
appraisal also includes a comprehensive fixed asset listing each year rather than just a report of additions and
deletions.
PurchasinQ - Quotes and Bids
Purchasing is the largest and one of the most important aspects of the District's financial operations. It is based on
the Board's adoption of a policy, procedures and various state and local laws. The procurement of all goods and
services must be made in accordance with the applicable laws and the District's policy.
During the current year audit, we noted the following:
. Three instances where there was no indication of quotes being obtained.
. The policy for quotes starts at $250 which can be cumbersome. This limit appears low.
. One instance in which a sole source vendor was used for items subject to bid; however, this was not
documented in the Board minutes.
. One instance in which items that met the bidding requirements were not put out for bid.
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Southold Fire District
For the Year Ended December 31,2006
We recommend that the District ensure that bids and quotes are obtained in accordance with law and Board policy,
and that sole source vendors be documented in the Board minutes. We also recommend that the District reevaluate
its current quote policy to ensure that the limits originally set are conducive to conducting Fire District business.
District Policies
General Municipal Law as well as other various state and local laws govern the policies that the Board of Fire
Commissioners must adopt and the District must follow. District policies are essential to the Board's oversight and
ensure the District has clear and concise guidance on how to conduct business in accordance with the law. In
addition, policies should be reviewed and re-adopted annually In order to keep them current with the law and the
needs of the District.
During our audit, we noted the following with regards to District policies:
. There is no policy with regards to refreshments or meals at meetings
. The District has not adopted a code of ethics policy
. The investment policy adopted by the Board is outdated and includes banks that are no longer in existence.
We recommend that the District adopt, by resolution, a Code of Ethics policy by June 1, 2007. This is a mandatory
policy that must be adopted pursuant to the new laws which were recently enacted. In addition, the District should
adopt a policy governing refreshments and meals at meetings and update the investment policy so that it reflects the
financial institutions currently used by the District.
Bank Reconciliations - Cancelled Checks
At the end of every month, the bank accounts should be reconciled and any necessary adjustments should be made
to the books. This reconciliation should include a comparison of the actual cancelled check or facsimile provided by
the bank to the payee, and dollar amount recorded in the books. The comparison of cancelled checks to recorded
information ensures that transactions have been properly recorded on the District's books.
During the current year audit, we noted that the District does not receive copies of the backs of cancelled checks.
We recommend the District inform the banks that they need copies of both the front and back of cancelled checks.
We further recommend that the District implement a procedure for the comparison of the cancelled checks to the
District's records to ensure agreement.
********************************************
The preceding comments and recommendations are intended solely for the information and use of the Board of Fire
Commissioners and the management of the Southold Fire District and should not be used by anyone other than these
specified parties.
Very truly yours,
c;.'61'4:~.. (.:-~-42 ...~4~p
Coughlin Foundotos Cullen & Danowski, LLP
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SOUTHOLD FIRE DISTRICT
FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS' REPORT
December 31, 2006
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SOUTH OLD FIRE DISTRICT
Table of Contents
December 31, 2006
Paae
Independent Auditors' Report
Report
Basic Financial Statements
Annual Financial Report Update Document
Notes to Financial Statements
29
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
38
Other Supplementary Information
Schedule of Revenues, Expenditures and Encumbrances
- Budget and Actual - General Fund
39
T :\Offlce\20,OOO's\25400\2006\Audit\FinanCial 200B_doc
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COUGHLIN FOUNDOTOS
o 0
CULLEN & DANOWSKI. UP
VINCENT D. CULLEN. CPA
JAMES E. DANOWSKI. CPA
JILL S. FICHTER. CPA
CHRISTOPHER V REI NO. CPA
PETER F RODRIGUEZ. CPA
STEPHEN J. WAGNER. CPA
ALAN YU. CPA
INDEPENDENT AUDITORS' REPORT
To the Board of Fire Commissioners
Southold Fire District
Southold, New York
We have audited the accompanying Annual Financial Report Update Document of the Southold Fire District, as of and for
the year ended December 31, 2006, which are the District's basic financial statements. These financial statements are
the responsibility of Southold Fire District's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States. 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 examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
As described more fully in Note 1, the Southold Fire District has prepared these financiai statements using accounting
practices prescribed and permitted by the New York State Office of the State Comptroller, which practices differ from
accounting principles generally accepted in the United States of America. The effects on the financial statements of the
variances between these regulatory accounting practices and accounting principles generally accepted in the United
States of America, although not reasonably determinable, are presumed to be material.
In our opinion, because of the effects of the matter discussed in the preceding paragraph, the financial statements
referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of
America, the financial position of the Southold Fire District, as of December 31, 2006, and the changes in its financial
position for the year then ended.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and
fund balances of each fund of the Southold Fire District, as of December 31, 2006, and their respective revenues and
expenditures for the year then ended, on the basis of accounting described in Note 1.
In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2007, on our
consideration of the Southold Fire District's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an
integrai part of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The other supplementary information is not a required part of the basic financial statements but it is provided for additional
analysis. We have applied certain limited procedures, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the other supplementary information. However, we did not audit the
information and express no opinion on it.
C-~I/:., ~,,~~-'<< -4~p
February 1 , 2007
1650 ROUTE 112. PORT JEFFERSON STATION. NEW YORK 11776-3060
o 0
PHONE: 631.473.3400' FAX: 631-473-4863' WWWCFCD.COM
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All Numbers in This Report
Have Been Rounded To
The Nearest Dollar
ANNUAL FINANCIAL REPORT
UPDATE DOCUMENT
For The
FIRE DISTRICT of Southold
County of Suffolk
For the Fiscal Year Ended 12/31/2006
*************************************************************************************************************************************
AUTHORIZATION
ARTICLE 3, SECTION 30 of the GENERAL MUNICPAL LAW:
1. ...Every Municipal Corporation ... shall annually make a report of its
financial condition to the Comptroller. Such report shall be made by the
Chief Fiscal Officer of such Municipal Corporation ...
5. All reports shall be certified by the officer making the same and shall
be filed with the Comptroller within sixty days after the close of the fiscal
year of such Municipal Corporation ... It shall be the duty of the
incumbent officer at the time such reports are required to be filed with
the Comptroller to file such report ...
State of NEW YORK
Office of The State Comptroller
Division of Local Government Services and Economic Development
Albany, New York 12236
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FIRE DISTRICT OF Southold
... FINANCIAL SECTION ...
Financial Information for the following funds and account groups are included in the Annual Financial Report filed by
your government for the fiscal year ended 2005 and has been used by the OSC as the basis for preparing this
update document for the fiscal year ended 2006:
(A) GENERAL
(H) CAPITAL PROJECTS
(K) GENERAL FIXED ASSETS
(TA) AGENCY
lYVl GENERAL LONG-TERM DEBT
All amounts included in this update document for 2005 represent data filed by your government with
OSC as reviewed and adjusted where necessary.
... SUPPLEMENTAL SECTION ...
The Supplemental Section includes the following sections:
1) Statement of Indebtedness
2) Schedule of Securities for Collateralization
3) Schedule of Time Deposits and Investments
4) I nvestment Certification
5) Bank Reconciliation
6) Local Government Questionnaire
All numbers in this report will be rounded to the nearest dollar.
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I (A) GENERAL
Balance Sheet
I Assets
Cash
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South old FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
.- -
154,894 A200
448,167
194 A380
136
19,726 A391
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(A) GENERAL
Balance Sheet
~_ lIttII:I!-w
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Non-Current Government Assets
Accounts Payable
69,225
A600
35.747
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A601
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Reserve For Encumbrances
AB21
20,000
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(A) GENERAL
Results of Operation
.!il'i -- -
Detail Revenues And Other Sources
Real Property Taxes 1,206,783 A1001
Interest And Earnings 14,646 A2401
Rental of Real Property 11,000 A2410
Sales of Equipment 2,025 A2665
Insurance Recoveries A2680
Refunds of Prior Year's Expenditures 398 A2701
Unclassified (specify) 290 A2770
Interfund Revenues A2801
St Aid - Other (specify) A3089
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1,337,409
1,:137,40,0
30,097
18,315
11,658
4,556
25,000
. 25,000
5,000
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Interfund Transfers
A5031
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449
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OSC Municipality Code 471179008000
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South old FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(AI GENERAL
Results of Operation
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Detail Expenditures And Other Uses
Fire, Pers Serv
Fire, Equip & Cap Outlay
Fire, GantT Expend
179,529
155,587
466,100
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State Retirement System
Local Pension Fund, Empl Bntts
Social Security, Employer Cont
Worker's Compensation, Empl Bntts
Hospital & Medical (dental) Ins, Empl 8nft
16,522
241,944
14,514
41,514
14,762
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Debt Principal, Serial Bonds
100,000
Ii -
A34101
A341 02
A341 04
A90108
A90258
A90308
A90408
A90608
A971 06
179,764
119,883
402,160
701,807
701,807
17,354
277, 660
15,173
42,348
14,965
367,500
100,000
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Debt Interest, Serial Bonds
65,775
62,025
A97107
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Transfers, Other Funds
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A99019
349
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OSC Municipality Code 471179008000
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(A) GENERAL
Changes in Fund Equity
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ANALYSIS OF CHANGES IN FUND EQUITY
Fund Equity-Beginning of Year
Prior Period Adj - Decrease In Fund Equity
Restated Fund Equity - Beg of Year
ADD - REVENUES AND OTHER SOURCES
DEDUCT - EXPENDITURES AND OTHER USES
Fund Equity-End of Year
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
Page 7
Z\II", --- ..
121,061 A8021 59,956
A8015
121,061 A8022 59,956
1,235,142 1,432,484
1,296,247 1,231,681
59,956 A8029 260,759
OSC Municipality Code 471179008000
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South old FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(A) GENERAL
Budget Summary
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Estimated Revenues And Other Sources
Est Rev - Real Property Taxes
Est Rev - Use of Money And Property
1,337,392
21,000
A1049N
A2499N
1,479,335
33,540
1,512;875
1,512,875
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OSC Municipality Code 471179008000
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I (A) GENERAL
Budget Summary
I Appropriations And Other Uses
App - Public Safety
App - Employee Benefits
I App - Debt Service
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
-.-
[;-R-~-!f.~iI
-'I
793,000
395,392
170,000
A3999N
A9199N
A9699N
965,400
369,200
156,275
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OSC Municipality Code 471179008000
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I (H) CAPITAL PROJECTS
Balance Sheet
I Assets
Cash
I Due From Other
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
~1I!o,.
17,064 H200
40,018 H391
40,018
222,597 H230
506
205,842
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(H) CAPITAL PROJECTS
Balance Sheet
iU~R= III il"_
Non-Current Government Assets
Accounts Payable
.._.,muml!llmIJ_' .
Z\.mi;"
,~-
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H600
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(H) CAPITAL PROJECTS
Results of Operation
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Detail Revenues And Other Sources
Interest And Earnings
13,480 H2401
9,694
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Interfund Transfers
382,000 H5031
27,147
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(H) CAPITAL PROJECTS
Results of Operation
___fill _d___
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Detail Expenditures And Other Uses
Fire, Equip & Cap Outlay
594,845 H34102
38,499
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Transfers, Other Funds
382,000 H99019
27,247
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OSC Municipality Code 471179008000
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(H) CAPITAL PROJECTS
Changes in Fund Equity
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ANALYSIS OF CHANGES IN FUND EQUITY
Fund Equity - Beginning of Year
Restated Fund Equity ~ Beg of Year
ADD - REVENUES AND OTHER SOURCES
DEDUCT - EXPENDITURES AND OTHER USES
Fund Equity - End of Year
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
- - -- -
816,365 H8021 235,000
816,365 H8022 235,000
395,480 36,841
976,845 65,746
235,000 H8029 206,095
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
(K) GENERAL FIXED ASSETS
Balance Sheet
-
Assets
Land
Buildings
Machinery & Equipment
206,892 K101
5,264,956 K102
4,498,550 K104
206,892
5,303,454
4,618,433
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Page 15
OSC Municipality Code 471179008000
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I (K) GENERAL FIXED ASSETS
Balance Sheet
I Non-Current Government Assets
Total Non-Current Govt Assets
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South old FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
~_~JI!LI1!
.............,il!!.l\ _--
9,970,398
K1S9
10,128,779
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OSC Municipality Code 471179008000
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I (TAl AGENCY
Balance Sheet
I Assets
Service Award Program Assets
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
-.--
-
2,058,382 TA461
2,252,530
458
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(TA) AGENCY
Balance Sheet
~
I~-'-
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Non-Current Government Assets
Service Awards
Guaranty & Bid Deposits
Deposit of Securities By Bank
Other Funds (specify)
2,058,382
24,700
TA13
TA30
TA32
TA85
2,252,530
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458
458
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OSC Municipality Code 471179008000
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South old FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
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(W) GENERAL LONG-TERM DEBT
Balance Sheet
__w..- _~"lIlm__~~_."--
Assets
Total Non-Current Govt liabilities 1,600,000 W129
1,500,000
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Page 19
OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2006
0fV) GENERAL LONG-TERM DEBT
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Balance Sheet
Non-Current Government Assets
Bonds Payable
1,600,000 W628
1,500,000
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Page 20
OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Financial Comments
For the Fiscal Year Ending 2006
(A) GENERAL
d"ustment Reason
Account Code A8015 "
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Page 21
OSC Municipality Code 471
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Southold FIRE DISTRICT
Statement of Indebtedness
For the Fiscal Year Ending 2006
debtedness Not Exempt From Constitutional Debt Limit
end No.200300000~--- ------ ~ .-- - ---- ~
Month and Year of Issue .~~=_ _ -=--~~. EDPC~DE .-:-~.. 12~~200u~
.urpos~of IssuEl__._.~ ___ .._ ement~ to El!<isting FH
urrent Interest Rate 3.750
< -- ,._-~._.~~'
o~~~~n~~~rn:~;~n~::;a~~::~r.__._.~. .-- ~.18771. ~-=---1,~~0,~~00~
a~~ob~~~~.~~u:~i~~:~~::rhereL._.-_-._-_..- _.~- .... . P1~773 .:':-.=:__l
do not include renewals here) ._____.____ P18775 . -- '106;000
.utstanding End of the Fiscal Year.. ....._~_.____~. F'.1877?_T~':~'=I~Qg~Q-~
r:~_al M:turity Date ~ --:-==--=---: - _-=- -=_:=-]1" =.._1~/1/~~1Z:
~~~;~~g Begin~in~f Year .. .. : - _ ~__ _.~_ _ -=l__:_~-_ _f=.~-~=1':90~~On~
~~~e.<!QuringFiscaIYe.ar_ _ _--=1 __.__ _'_ ___"I
~~~~~~~ ~~~a~~~:=-___-=--.. -'==t=---=-.T :-':=:..J,~~~~~~
I
c==== --]
**.******........*.***.***.***********************************************************.************************************************
**********************.****************************************************************************************************************
lotal of All Indebtedness
Includes Total of Bonds and Notes - Exempt and Not Exempt
~i~t~~-;:i~~i~-~e:--.'-~--=~.~'--- '-Il ~: ... --:-f------ ---1 ,~tou~
~ued Durinaf:1scal Year . -=--~=--. . _==~ --] =li- --- -- --q
J~t~t~~~~~:~::r ---=--=--_~==---" { :--- --{=-~.= 1,~~~:~~~
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OSC Municipality Code 471179008000
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South old FIRE DISTRICT
Maturity Schedule
For the Fiscal Year Ending 2006
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South old FIRE DISTRICT
Schedule of Securities for Collateralization
For the Fiscal Year Ending 2006
a;eneral Municipal Law, Section 10 as amended by chapter 708 Laws of 1992 lists the types of securities which
"'ay be pledged for collateralization. Please click in the response box next to the type(s) of securities used by
banks as collateral for your deposits.
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Yes 1.
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No
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Obligations issued by the United States of America, an agency thereof or a United States sponsored
corporation or obligations fully insured or guaranteed as to the payment of principal and interest by the
United States of America, an agency thereof or a United States government sponsored corporation.
2. Obligations issued or fully guaranteed by the International Bank for Reconstruction and Development,
the Inter-American Development Bank, the Asian Development Bank and the African Development
3. Obligations partially insured or fully guaranteed by any agency of the United States of America, at a
proportion of the market value of the obligation that represents the amount of the insurance or
4.
Obligations issued or fully insured or guaranteed by this state, obligations by a municipal corporation,
school district or district corporation of this state or obligations of any public benefit corporation which
under a specific state statute may be accepted as security for deposit of public moneys.
5. Obligations issued by states (other than this state) of the United States rated in one of the three highest
rating categories by at least one nationally recognized statistical rating organization.
6. Obligations of Puerto Rico rated in one of three highest rating categories by at least one nationally
recognized statistical rating organization.
7. Obligations of counties, cities, and other governmental entities of another state having the power to
levy taxes that are backed by the full faith and credit of such governmental entity and rated in one of
the three highest rating categories by at least one nationally recognized statistical rating organization.
8. Obligations of domestic corporations rated in one of the two highest rating categories by at least one
nationally recognized statistical rating organization.
9. Any mortgage related securities, as defined in the Securities Exchange Act of 1934, as amended,
which may be purchased by banks under the limitations established by federal bank regulatory
agencies.
10. Commercial paper and bankers' acceptances issued by a bank (other than the bank with which the
money is being deposited or invested) rated in the highest short-term category by at least one
nationally recognized statistical rating organization and having maturities of not longer than sixty days
from the date they are pledged.
11. Zero-coupon obligations of the United States government marketed as "Treasury Strips".
12. Letters of Credit.
13. Surety bonds.
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Schedule of Time Deposits and Investments
For the Fiscal Year Ending 2006
EDP Code
Amount
CASH:
On Hand
Demand Deposits
Time Deposits
Total
9Z2001
9Z2011
9Z2021
$16.00
----~-_._-
u __.~180"595.00
_ $~82,5!i2.00
. ~66~1~~QO
COLLATERAL:
- FDIC Insurance
Collateralized with securities held in
possession of municipality or its agent
Total
9Z2014
__$200~00000
9Z2014A
$479,474.00
_$6:[9,474.00
INVESTMENTS:
- Securities (450)
Book Value (cost)
Market Value at Balance Sheet Date
9Z4501
9Z4502
Collateralized with securities held in
possession of municipality or its agent
9Z4504A
- Repurchase Agreements (451)
Book Value (cost)
Market Value at Balance Sheet Date
9Z4511
9Z4512
Collateralized with securities held in
possession of municipality or its agent
9Z4514A
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OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Investment Certification
For the Fiscal Year Ending 2006
DEFINITIONS:
I Repurchase Agreement - A generic term for an agreement in which a government entity
(buyer-lender) transfers cash to a broker-dealer or financial institution (seller-borrower);
the broker-dealer or financial institution transfers securities to the entity and promises to repay
I the cash plus interest in exchange for the same securities or for different securities.
Reverse Repurchase Agreement - An agreement in which a broker-dealer or financial institution
(buyer-lender) transfers cash to a government entity (seller-borrower); the entity transfers securities
I to the broker-dealer of financial institution and promises ro repay the cash plus interest in exchange
for the same securities or different securities.
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RESPONSE
1) Has your Local Government adopted an investment policy as Yes
required by General Municipal Law, Section 39?
2) The following investments are permitted by your investment policy.
* Obligations of the UNITED STATES Yes
* Obligations of the U.S. Government Agencies, guaranteed by Yes
the UNITED STATES Government
* Obligations of the STATE of NEW YORK Yes
* Obligations of other NEW YORK STATE Local Governments Yes
* Other No
3)
4)
Do you engage in reverse repurchase agreements?
Are Repurchase Agreements authorized by your investment
policy?
No
No
Name:
Title:
Phone Number:
Karen Helinsky .
Treasurer
(631) 765-4305 .
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JSC Municipality Code 471179008000
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Bank
Account
Number
500025531
1----------
500028014
- - ..-
500032347
I ;-8000135~ -=--=
NA-01-0564-0001
--------..,.-" -
I NA-()1-0564-0002
NA-01-0564-0003
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Southold FIRE DISTRICT
Bank Reconciliation
For the Fiscal Year Ending 2006
Include All Checking, Savings and C.D. Accounts
Bank
Balance
__ $180,59_5
$0
$0
-.,---..--------- "",-
___~104,221
$172,483
---
____$176,95~
_~.28,883
Add:
Deposit
In Transit
$0
-----.,------'--
-----~
$0
- -- ---,'-
______ __j.o
__.1.0
----~Q -
$0
Total Adjusted Bank Balance
E'elty Cash
Adjustments
Total Cash
Total Cash Balance All Funds
* Must be equal
Page 27
Less:
Outstanding
Checks
Adjusted
Bank
Balance
___....19L154_
___ __ $0
$0
$0
$0
_ ____~O
$0
__ ___ $171,441
.1Q
$0
--'-,----
$104,227
_$172,483
$17~-,-959
$28,883
9ZCASH
9ZCASHB
__ ____$653,993
$16.00
-------.".-----'.--------..- -
$.00
------ ------
* ___ _ _$654,0.09
_ $654 ,009
*
OSC Municipality Code 471179008000
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Southold FIRE DISTRICT
Fire District Questionnaire
For the Fiscal Year Ending 2006
11)
2)
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Has your district adopted a written procurement prolicy and is it complied with?
Has your district contracted to have an independent audit of its financial statements?
If not, has the Board of Fire Commissioners performed an internal audit of the
Treasure~s records and reports?
13)
4)
15)
6)
Does your district have a written travel policy and is it complied with?
Are monthly bank reconciliations performed?
What is your district's FYE 2007 statutory spending limitation margin (amount)?
Does your fire district have a Length of Service Award
Program (LOSAP) for volunteer firefighters?
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If so, how are the LOSAP funds invested?
Marketable Secu rities
Annuities
Life Insurance
Other (describe)
LI Commercial Bank Money Market
Response
Y
Y
N
Y
Y
$2,063,389
Y
N
Y
-_.._~_..-------
Y
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OSC Municipality Code 471179008000
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SOUTH OLD FIRE DISTRICT
Notes to Financial Statements
December 31,2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Southold Fire District (District), as of and for the year ended December 31, 2006,
have been prepared using accounting practices prescribed and permitted by the New York State Office of the
State Comptroller, which differs from accounting principles generally accepted in the United States of America
(GAAP) as applied to governmental units. The financial statements of the District have been prepared using the
modified accrual basis of accounting. This method differs from GAAP, which requires the accrual basis of
accounting to be used. The accrual basis of accounting requires the capitalization and depreciation of property
and equipment and the recording of long-term liabilities. Under the modified accrual basis of accounting, property
and equipment are recorded as an expenditure when purchased and long-term liabilities are recognized when
paid. In addition, GAAP requires the financial statements to be prepared in accordance with the Governmental
Accounting Standards Board (GASB) No. 34, Basic Financial Statements - and Management's Discussion and
Analysis - for State and Local Governments. GASB 34 financial statements require the presentation of
government-wide financial statements and management's discussion and analysis. The accounting practices used
to prepare these financial statements does not require compliance with GASB 34.
The significant accounting policies of the District are described below:
A. Financial Reporting Entity
The District is a district corporation and political subdivision of the State of New York, distinct from the
municipalities in which it is located. In general, the District is governed by an elected board of fire commissioners
(Board) and is required to have a treasurer and secretary. The District has the legal authority to levy taxes on real
property and to borrow in its own name. The District is governed by General Municipal Law and other laws of the
State of New York and its subdivisions. The scope of activities included in the accompanying financial statements
are the transactions which comprise the District's operations.
The primary function of the District is to provide fire-protection, rescue and emergency services to the
community. Services such as firefighting, fire prevention and public education support the primary function.
The financial reporting entity includes all funds, functions and organizations over which the District's Board
exercise oversight responsibility. Oversight responsibility is determined on the basis of financial
interdependency, selection of governing authority, designation of management, ability to significantly influence
operations and accountability for fiscal matters.
B. Basis of Presentation
Fund Financial Statements
The District uses funds to report on its financial position and the results of its operations. Fund accounting is
designed to demonstrate legal compliance and to assist 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.
The District records its transactions in the fund types described below:
Governmental Fund Types
Governmental funds are those through which most governmental functions are financed. The acquisition, use
and balances of expendable financial resources and the related liabilities are accounted for through
governmental funds. The measurement focus of the governmental funds is based upon determination of
financial position and changes in financial position. The following are the District's governmental fund types:
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
General Fund - the general fund is the principal operating fund of the District. It is used to account for all
financial resources except those required to be accounted for in another fund.
Capital Projects Fund - the capital projects fund is used to account for the accumulation of financial
resources and the disbursements for the acquisition, construction or renovation of major capital facilities,
or equipment.
Fiduciary Fund Types
Fiduciary Funds are used to account for assets held by the District in a trustee or custodial capacity.
Agency Fund - used to account for money (and/or property) received and held in the capacity of trustee,
custodian, or agent.
Account Groups
Account Groups are used to establish accounting control and accountability for the Fire District's general fixed
assets and general long-term obligations. The two account groups are not 'funds'. They are accounting
entities, not fiscal entities, and are concerned only with the measurement of financial position, and not with the
results of operations.
General Fixed Assets Account Group - the general fixed assets account group is used to account for
land, buildings, improvements and equipment owned by the Fire District.
General Long-Term Debt Account Group - the general long-term debt account group is used to
account for all long-term debt and other obligations of the Fire District.
C. Measurement Focus and Basis of Accounting
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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 focus. Measurement focus is the determination of
what is measured (i.e., expenditures or expenses).
Modified Accrual Basis - All governmental funds are accounted for using 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. Revenues are considered to be available if collected within 60 days after the end of the calendar year.
Expenditures are recorded when incurred except that expenditures for prepaid expenses and inventory-type
items are recognized at the time of purchase; principal and interest on indebtedness are not recognized as
expenditures until due; and compensated absences, such as vacation and sick leave which vests or
accumulates, are charged as expenditures when paid.
D. Property Taxes
Real property taxes are levied annually by the District no later than November 1" and become a lien on December
1". The District's tax levy is collected by the Town of Southold and then remitted to the District. The County of
Suffolk is responsible for all uncollected taxes.
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SOUTH OLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
E. Interfund Transactions
The operations of the District give rise to certain transactions between funds, including transfers of expenditures
and revenues to provide services and construct assets. Interfund transfers and the related receivables and
payables (i.e., due from/to other funds) have been recorded in the funds where applicable.
F. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported revenues and expenses during the reporting period. Accordingly, actual results could differ from
those estimates. Estimates and assumptions are made in a variety of areas, including computation of
encumbrances, compensated absences, potential contingent liabilities and useful lives of long-lived assets.
G. Cash and Cash Equivalents/Investments
Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original
maturities of three months or less from date of acquisition.
Investments are reported at fair value, based on quoted market prices.
H. Accounts Receivable
Accounts receivable are shown gross. Uncollectible amounts are recognized under the direct write-off method.
I. Prepaid Items
Prepaid items represent payments made by the District for which benefits extend beyond year end. These
payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
the financial statements. A current asset for the prepaid amounts is recorded at the time of purchase and an
expenditure is reported in the year the goods or services are consumed.
J. General Fixed Assets
The modified accrual basis of accounting requires that general fixed assets be recorded at cost as expenditures in
the respective governmental funds at the time of purchase. These assets are accounted for in the General Fixed
Assets section of the Annual Update Document (Generai Fixed Asset Account Group) at replacement value.
K. Short-Term Debt
The District may issue bond anticipation notes (BAN), in anticipation of proceeds from the subsequent sale of
bonds. These notes are recorded as current liabilities of the funds that will actually receive the proceeds from
the issuance of bonds. State law requires that BANs issued for capital purposes be converted to long-term
financing within five years after the original issue date.
L. Accrued Liabilities and Long-Term Obligations
In the fund financial statements, liabilities are reported only to the extent that they are due for payment during the
current year.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
M. Fund Balance - Reserves and Designations
Portions of fund balance are reserved or designated to either satisfy legal restrictions or to plan for future
expenditures. Interest earned on reserve fund resources becomes part of the respective reserve fund. While a
separate bank account is not necessary for each reserve fund, a separate identity for each reserve fund must be
maintained. The following is a description of the reserves utilized by the District:
Reserve for Encumbrances
Reserve for encumbrances represents the amount of outstanding encumbrances at the end of the calendar
year. The reserve is accounted for in the general fund and capital projects fund.
Reserve for Prepaid
Reserve for prepaid is used to restrict that portion of fund balance, which is not available for appropriation. The
reserve is accounted for in the general fund.
Reserve for Capital
Reserve for capital is used to finance all or part of the cost of construction, reconstruction or acquisition of a
specific or type of capital improvement or acquisition of a specific item or items or type of equipment. The
reserve is accounted for in the capital projects fund.
2. STEWARDSHIP. COMPLIANCE. ACCOUNTABILITY
Budgetary Data
Budqet Policies
The District administration prepares a proposed general fund budget for approval by the Board in September of
each year. Upon Board approval, the budget is effective for the next calendar year.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure
of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations, is
employed as a control in preventing over expenditure of established appropriations. Open encumbrances are
reported as reservations of fund balances since they do not constitute expenditures or liabilities and will be
honored through budget appropriations in the subsequent year. Expenditures for such commitments are
recorded in the period in which the liability is incurred.
Budqet Basis of Accountinq
Budgets are adopted annually by the Board in accordance with New York State law. Appropriations authorized
for the current year are increased by the amount of encumbrances carried forward from the prior year.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS
I
The District's investment policies are governed by state statutes and District policy. Resources must be deposited
in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or trust companies located within the
state. Permissible investments include obligations of the U.S. Treasury and U.S. Agencies, repurchase
agreements and obligations of New York State or its localities. Collateral is required for demand and time deposits
and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged as collateral are
obligations of the United State and its Agencies and obligations of New York State and its municipaiities.
Investments are stated at fair value.
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Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it.
GASB directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository
insurance and the deposits are either:
A. Uncollateralized,
B. Collateralized by securities held by the pledging financial institution, or
C. Collateralized by securities held by the pledging financial institution's trust department or agent but not in
the District's name.
None of the District's aggregate bank balances, not covered by depository insurance, were exposed to custodial
credit risk as described above at year end.
The District did not have any investments at year end or during the year. Consequently, the District was not
exposed to any material interest rate risk.
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Investment pool:
The District participates in a multi-municipal cooperative investment pool agreement pursuant to New York State
General Municipal Law Article 5-G, ~119-0, whereby it holds a portion of the investments in cooperation with
other participants. The investments are highly liquid and are considered to be cash equivalents.
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Total investments of the cooperative as of year end are $1,244,295,721, which consisted of $619,056,314, in
repurchase agreements, $237,180,026 in U.S. Treasury Securities, $13,309,381 in U.S. Government Guaranteed
Securities and $374,750,000 in collateralized bank deposits, with various interest rate and due dates.
The following amounts are included as unrestricted cash in the District's funds:
General fund
Capital funds
$
172,483
205,842
$ 378,325
The above amounts represent the cost of the investment pool shares, and are considered to approximate market
value. The investment pool is categorically exempt from the New York State collateral requirements. Additional
information concerning the cooperative is presented in the annual report of MBIA, Inc.
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SOUTH OLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31,2006
4. CHANGES IN FIXED ASSETS
Capital asset balances and activity for the year ended December 31, 2006 were as follows:
Balance Balance
January 1 , December 31,
2006 Additions Deletions 2006
land $ 206,892 $ $ $ 206,892
Buildings 5,264,956 38,498 5,303,454
Equipment 4,498,550 119,883 4,618,433
$ 9,970,398 $ 158,381 $ $ 10,128,779
Assets are valued at current replacement cost.
5. INTERFUND TRANSACTIONS
Interfund balances at December 31, 2006 are as follows:
Interfund Interfund Interfund Interfund
Receivable Payable Revenues Expenses
General Fund $ $ 711 $ 449 $ 349
Trust and Agency 458
Capital Fund 506 253 27,147 27,247
$ 964 $ 964 $ 27,596 $ 27,596
The District transfers from the general fund to the reserve funds in accordance with the general fund budget. The
District may also transfer general fund surplus based on Board resolution.
6. PENSION PLANS
A. New York State and local Employees' Retirement System
Plan Description
The District elected to participate In the New York State and Local Employees' Retirement System (ERS). This
system is a cost-sharing, multiple-employer, defined benefit pension plan. The system offers retirement and
disability benefits, annual cost of living increases, and death benefits to plan members and beneficiaries.
The ERS is established pursuant to the New York State Retirement and Social Security Law to provide benefits
for the state, local governments, and their employees. ERS plan benefits are guaranteed by state constitution.
The system Issues publicly available financial reports that include financial statements and required
supplementary information. These reports may be obtained by writing or calling the system at the following
location: NYS and Local Retirement Systems, Gov. Alfred E. Smith State Office Building, Albany, NY 12244.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
Fundinq Policv
The system is noncontributory except for employees who joined the retirement system after July 27, 1976 with
less than ten years of service, who contribute 3% of their salary. Regardless of start date, all members may
elect to make member contributions.
The New York State Comptroller shall certify annually the rates expressed as proportions of the members'
payroll, which shall be used In computing the contributions required to be made by employers to the pension
accumulation fund. The District is required to contribute on an annual basis. Contributions are generally made
to the ERS on December 15, for the period April 1 to March 31 of the following year based on estimated eligible
employees' salaries. Contributions are adjusted in the following year based on actual salaries.
The following represents the District's regular pension contribution to the system based on annual covered
payroll:
2006
2005
2004
District Contributions
$
$
$
13,327
17,354
16,525
The District's contribution to the system is actuarially determined and is established and may be amended by
the ERS Board of Trustees.
B. Service Award Program
The District voters approved a Length of Service Award Program (Service Award Program) effective January 1,
1993, which is an unqualified deferred compensation plan. Under the state enabling legislation, the Service
Award Program was specifically excluded from the state's retirement system.
Plan Descriotion
The Service Award Program has no minimum months of service requirement for participation in the plan. All
members who are credited with sufficient "Service Award Points" are eligible. The minimum age of a participant
is 18; completion of one year of participation in the plan is required to collect benefits. Participants are fully
vested in the fifth year of the plan. Benefits begin on the anniversary date following attainment of age 62.
Benefits
The benefits provided to members of the Service Award Program are established by the plan. The benefit at
entitlement date is $20 per month multiplied by the total years of service. Total years of service cannot exceed
40 years and service prior to January 1, 1993 is limited to five years. The maximum monthly benefit is $800.
The normal form of the benefit is in monthly payments for life (with payments guaranteed for at least 10 years).
The death benefit represents the present value of accrued benefits. The accrued benefit represents $20 per
month multiplied by the total years of credited service as of the determination date, and is payable beginning at
the entitlement date. Individuals who are collecting benefits will continue to earn additional years of credit in the
program for a maximum of 10 years, provided the total entitlement does not exceed the maximum dollar amount
established by the plan.
The termination benefits are 0% vesting for less than five years and 100% thereafter.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
District Information
The following represents information relating to the District's participation in the above pension plan as of
December 31, 2005. The information for the year ended December 31, 2006 is currently not available.
Present Value of Benefits
Less: Assets Available for Benefits
$ 4,989,512
2,057,882
Total Unfunded Benefits
Less: Unfunded Liability for Prior Service
2,931,630
1,728,888
Normal Cost of Unfunded Benefits
$ 1 ,202,742
Contribution Requirements
The District contributes to the Service Award Program based on a group funding calculation. The assumptions
for determining the contributions and present value of accrued benefits are as follows:
Pre-retirement - interest rate:
Post-retirement - annuity factors:
Mortality:
6.0% compounded annually
6.0% compounded annually
1994 group annuity table - male
The District's contribution to the Service Award Program for the years ended December 31, 2006, 2005 and
2004, was $277,660, $225,962 and $231,068, respectively.
7. SHORT-TERM DEBT
The District had no short-term borrowings for the year ended December 31, 2006.
8. LONG-TERM LIABILITIES
Serial Bonds
The District borrows money in order to acquire 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 debt of the local government, are
recorded in the Schedule of Non-current Governmental Liabilities The provision to be made in future budgets for
capital indebtedness represents the amount exclusive of interest, authorized to be collected in future years from
taxpayers and others for liquidation of the long-term liabilities.
The changes in the District's Long-Term indebtedness during the year ended December 31, 2006 are
summarized as follows:
Amounts
Balance Balance Due Within
1/1/2006 Additions Reductions 12/31/2006 One Year
Long-term debt:
Bonds Payable $ 1,600,000 $ $ 100,000 $ 1,500,000 $ 100,000
$ 1,600,000 $ $ 100,000 $ 1,500,000 $ 100,000
The general fund has typically been used to liquidate long-term liabilities. Additions and reductions to
compensated absences are shown net since it is impractical to separately determine these amounts.
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SOUTHOLD FIRE DISTRICT
Notes to Financial Statements (Continued)
December 31, 2006
Bonds payable are comprised of the following:
Issue Final Interest Outstanding at
Description Date Maturity Rate December 31,2006
Bond 6/24/2002 7/9/2017 3.7 - 4.2% $ 1,500,000
$ 1,500,000
The following is a summary of debt service requirements:
Fiscal Year Ending December 31, Principal Interest Total
2007 $ 100,000 $ 58,275 $ 158,275
2008 125,000 54,525 179,525
2009 125,000 49,837 174,837
2010 125,000 45,150 170,150
2011 125,000 40,462 165,462
2012-2017 900,000 127,575 1,027,575
Total $ 1,500,000 $ 375,824 $ 1,875,824
Interest on long-term debt for the year was $62,025. The maturity of compensated absences is not
determinable.
9. COMMITMENTS AND CONTINGENCIES
Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
injuries to employees; errors and omissions; natural disasters, etc. These risks are covered by commercial
insurance purchased from independent third parties. Settled claims from these risks have not exceeded
commercial insurance coverage for the past three years.
10. SPENDING LIMITATION
The District did not exceed the statutory spending limitation imposed by New York State Law for the year ended
December 31, 2006 and the budget for the year ending December 31, 2007.
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COUGHLIN FOUNDOTOS
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CULLEN & DANOWSKI, UP
VI NCENT D. CULLEN, CPA
JAMES E. DANOWSKI, CPA
JILL S. FICHTER. CPA
CHRISTOPHER V. REINO, CPA
PETER F. RODRIGUEZ, CPA
STEPHEN J. WAGNER. CPA
ALAN YU, CPA
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Fire Commissioners
Southold Fire District
Southold, New York
We have audited the Annual Financial Report Update Document of the Southold Fire District, as of and for the year ended
December 31, 2006, which comprise the District's basic financial statements, and have issued our report thereon dated
February 1, 2007, We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States,
Internal Control Over Financial ReportinQ
In planning and performing our audit, we considered the Southold Fire District's internal control over financial reporting
in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements
and not to provide an opinion on the internal control over financial reporting, Our consideration of the internal control
over financial reporting wouid not necessarily disclose all matters in the internal control that might be material
weaknesses, A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected,
We noted no matters involving the internal control over financial reporting and its operation that we consider to be
material weaknesses,
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Southold Fire District's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, noncompliance with which couid have a direct and material effect on the determination of financial
statement amounts, However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards,
We noted certain matters that we reported to the Board of Fire Commissioners of the Southold Fire District in a
separate letter dated February 1, 2007,
This report is intended solely for the information and use of the Board of Fire Commissioners and the management of
the Southold Fire District and is not intended to be and should not be used by anyone other than these specified
parties,
G-'O/l4; ~,,~~.IJ< ",-./;,~~p
February 1, 2007
1650 ROUTE 112, PORT] EFFERSON STATION, NEW YORK 11776-3060
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PHONE: 631-473-3400' FAX: 631-473-4863 . WWWCFCD,COM
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SOUTH OLD FIRE DISTRICT
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - General Fund
For the Year Ended December 31, 2006
Variance
Original Final Year End Favorable
Budget Budget Actual Encumbrances (Unfavorable)
REVENUES
Real property taxes $ 1,337,392 $ 1,337,392 $ 1,337,409 $ $ 17
Interest and earnings 3,000 3,000 30,097 27,097
Rental of real property 18,000 18,000 18,315 315
Sale of equipment 11,658 11,658
Insurance recoveries 4,556 4,556
Miscellaneous 25,000 25,000
Grant revenue 5,000 5,000
Transfers in 449 449
Total Revenues $ 1,358,392 $ 1,358,392 $ 1,432,484 $ $ 74,092
EXPENDITURES
Personal services $ 195,000 $ 195,000 $ 179,764 $ $ 15,236
Equipment and capital outlay 128,000 128,000 119,883 8,117
Fire protection 480,000 480,000 402,160 20,000 57,840
State retirement 22,392 22,392 17,354 5,038
Service award program 275,000 275,000 277 ,660 (2,660)
Social security 20,000 20,000 15,173 4,827
Workers' compensation 50,000 50,000 42,348 7,652
Medical and accident Insurance 18,000 18,000 14,965 3,035
Debt service - principal 100,000 100,000 100,000
Debt service - interest 70,000 70,000 62,025 7,975
Operating transfer out 349 (349)
Total Expenditures $ 1,358,392 $ 1,358,392 $ 1,231,681 $ 20,000 $ 106,711
See Independent Auditors' Report
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