HomeMy WebLinkAbout2006 FIFD
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RECEIVED
JUL 20 2007
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Soulhold TClwn Clerk
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31,2006
c)H~RTV
~ALS &
AN KS7 P.C.
C!;:RTII=I!;:D PUBLIC
ACCOUNTANTS
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FISHERS ISLAND FERRY DISTRICT
}'INANCIAL STATEMENTS
DECEMBER 31, 2006
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Independent Auditor's Report...
Statement of Net Assets........
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2006
CONTENTS
................................................................ I
.... ..................................................................................................................2
Statement of Revenues, Expenses, and
Changes in Net Assets .............
Notes to Financial Statements .........
..............................................................................................3
....4
DOHERTY, BEALS & BANKS, P.c.
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DOHERTY, BEALS & BANKS, P.c.
CARL A. BANKS, CPA
STACEY L. GUALTIERI, CPA
KATHLEEN A. STEAMER, CPA
DAVID J. MICELI, CPA
CERTIFIED PlJBLlC ACCOl:NTANTS
187 WILLlAJ\.IS STREEt
POST OIit'lCE BOX 59
NEW l.ONDON. CONNECTICUT 06320
(860)443-2033
FAX (860) 444.7086
WWW.DBBCPA.COI\I
Board of Commissioners
Fishers Island Ferry District
Fishers Island, NY 06390
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying tinancial statements ofthe Fishers [sland Ferry District, (a component unit of The Town
of Southold) as of and for the year ended December 3 I, 2006, which collective[y comprise the District's basic tinancial
statements as listed in the table of contents. These tinancia[ statements are the responsibility of the Fishers Island Ferry
District's management. Our responsibility is to express an opinion 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 tinancial audits contained in Government Auditing Standards, issued by the Comptroller Genera[ 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
the 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 opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the
Fishers Island Ferry District as of December 31,2006, and the results of its operations for the yearthen ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 22, 2007, on our
consideration of the District's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grants. 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 integral part of an audit performed in
accordance with Government A uditing Standards and should be read in conjunction with this report in considering the results
of our audit.
n "t...t . .6~4 t ..:h..)..L/ jJ, G .
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DOHERTY, BEALS & BANKS, P.c.
May 22, 2007
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FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT OF TOWN OF SOUTH OLD
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2006
ASSETS
Cash and investments
Other receivables
Due from grants
Due from other funds
Prepaid expenses
Land
Buildings
Machinery and equipment
Less accumulated depreciation
TOTAL ASSETS
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
Other liabilities
Due to other funds
Judgements and claims payable
Wages payable
Bond anticipation notes
General obligations bonds payable
TOTAL LIABILITIES
NET ASSETS
Investments in fixed assets
Unrestricted (deficit)
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
See notes to financial statements.
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DOHERTY, BEALS & BANKS, P.c.
$ 266,669
76,426
237,056
182,783
68,900
41,7]7
]8,277,528
2,787,] 14
(5,339,945)
$ 16,598,248
$ 109,664
364,384
1]5,994
200,000
250,350
1,625,000
2,700,000
5,365,392
15,766,414
(4,533,558)
1] ,232,856
$ 16,598,248
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FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT OF TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,2006
OPERATING REVENUES
Operations $ 1,925,100
Charters 22,948
Mail 18,905
Theater 15,467
Other revenues 60,830
TOTAL OPERATING REVENUES 2,043,250
OPERATING EXPENSES
Personnel 1,110,773
Employee benefits 332,474
Equipment maintenance 135,169
Contractual services 489,637
Depreciation 350,587
Airport 27,124
Theater 18,602
Mail 3,300
Insurance 70,952
Property tax 45,706
Repai rs - docks 34,661
Bond payments 154,867
Administration 20,463
Insurance claims 4,667
TOTAL OPERA TlNG EXPENSES 2,798,982
OPERATING INCOME (LOSS) (755,732)
NONOPERATING REVENUE (EXPENSES)
Interest income 14,332
Capital grants 810,646
Property taxes 400,000
Judgements and claims (200,000)
Interest expense (14)
TOTAL OPERA TlNG REVENUE (EXPENSE) 1,024,964
CHANGE IN NET ASSETS 269,232
NET ASSETS - BEGINNING 10,963,624
NET ASSETS - ENDING $ 11,232,856
See notes to financial statements.
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DOHERTY, BEALS & BANKS, r.c.
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FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purpose
The Fishers Island Ferry District operates through the Town of South old as an organization exempt trom income tax.
It is a component unit of the Town of South old. 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.
Method of Accounting
The Fishers Island Ferry District uses the accrual basis of accounting. Under this basis of accounting, revenues
are recognized when measurable and earned. Expenditures are recorded when measurable and incurred.
Financial Statement Presentation
Financial statement presentation follows the recommendation of Statement No. 34 of the Government Accounting
Standards Board, Basic Financial Statements- and Management's Discussion and Analysis- for State and Local
Governments. Under GASB No. 34, the District is required to report information regarding its financial position and
activities using the economic resources measurement focus and the accrual basis of accounting.
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 amounts of assets
and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and
reveuue and expenses during the reporting period. Actual results could differ from those estimates.
Cash Equivalents
The Organization considers all unrestricted highly liquid investments with a maturity of three months or less to be
cash equivalents.
Property and Equipment
Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation.
Depreciation ofthe Organization's assets is calculated using the straight-line method over the estimated useful lives
of the assets ranging from five to thirty years.
2.
CONCENTRATION OF CREDIT RISK
The Organization maintains cash balances at several financial institutions. Accounts at each institution are insured by
the Federal Deposit Insurance Corporation up to $100,000. At December 31, 2006, the Organization's uninsured
cash balances total $135.030.
3.
SUBSEQUENT EVENTS
During 2007 The Fishers Island Ferry District had been charged with civil violations of the Federal Rivers and
Harbors Act, which prohibits discharges of waste from any ship into navigable waters. In March of2006 the District
agreed to pay a fine of$186, 417 plus interest to settle the lawsuit filed against the District for dumping raw sewage
into Long Island Sound and the Thames River between 2000 and 2004.
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DOHERTY, BEALS & BANKS, P.c.
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FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
4.
PROPERTY AND EQUIPMENT
Property, plant and equipment are recorded at cost and consist of the following classes of assets:
Land
Buildings
Machinery and Equipment
$ 47,717
18,277,528
2,787,114
Total Property and Equipment
$ 21,112,359
5.
BONDS PAYABLE
Serial Bonds dated March 8, 2005. Denominations maturing on September I" each year through 2021,
interest rate is 3.75%. The outstanding balance on the bonds at year-end is $2,700,000.
The maturities of the bonds for the next five years is as follows:
2008
2009
2010
2011
2012
$ 178,125
178,125
178,125
178,125
178,125
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
Interest
Rate
Bonds
Budget
Appropriations
Amount
New London Terminal Project
$ 1,625,000
$
2.75%
$ 1,625,000
TOTAL
$ 1,625,000
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DOHERTY, BEALS & BANKS, P.c.
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FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2006
6.
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 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 financial 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% oftheir salary. Underthe 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 Southold is required to contribute at an actuarially determined rate.
The Town's contributions made to the Systems were equal to 100% ofthe contributions required for each year. The
districts portion of the contribution was $ 99,882 in 2006.
Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 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 I 7-year period, with an 8.75% interest factor added.
Local governments 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.
7.
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
$150,346 was paid on behalf of 3 retirees and 17 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 & BANKS, P.c.
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f~.;'LL:'\/tD
JUl 20 2007
S"""I,+J T!,wn Clerk
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF
THE TOWN OF SOUTHOLD
SUPPLEMENTAL FINANCIAL REPORTS
IN ACCORDANCE WITH THE
OMB CIRCULAR A-133
DECEMBER 31,2006
OH~RTV
~ALS &
AN KSp P.C.
C!;:RTII=I!;:D PUBLIC
ACCOUNTANTS
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT Of'
THE TOWN OF SOUTHOLD
SUPPLEMENTAL FINANCIAL REPORTS
IN ACCORDANCE WITH THE
OMB CIRCULAR A-I33
DECEMBER 31, 2006
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF
THE TOWN OF SOUTHOLD
SUPPLEMENTAL FINANCIAL REPORTS
IN ACCORDANCE WITH THE
OMB CIRCULAR A-I33
DECEMBER 31, 2006
CONTENTS
Report on Compliance with Requirements Applicable
to each Major Program, on Internal Control
over Compliance in Accordance with OMB Circular
A-l33, and on the Schedule of Expenditures
afFederal Awards... . .. ............................. ....
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Schedule of Expenditures of Federal Awards
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Notes to the Schedule of Expenditures
offederal Awards
......................4
Schedule of Findings and Questioned Costs
... ..................................................5
Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit
Of Financial Statements Performed in
Accordance with Government A IIditing Standards
..................................................................7
DOHERTY, BEALS & BANKS, P.c.
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DOHERTY, BEALS & BANKS, P.C.
CARL A. DANKS, CPA
STACEY L. GUALTIERI, CPA
KATHLEEN A. STEAJ\1ER, CPA
DA VID J. MICELI, CPA
CERTIFIED PUBLIC ACCOUNTANTS
187 WILLIA\lS STREET
POST OFFICE BOX 59
NEW LO:-.rVON, CO~~'ECTICVr 06320
(860) 44]~2033
FAX (860) 444-7086
WWW.DBBCPA.COM
Board of Commissioners
Fishers Island Ferry District
Fishers Island, NY 06390
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM, ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133, AND ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Compliance
We have audited the compliance of the Fishers Island Ferry District, a component unit of the Town of South old, with the
types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31,2006.
The major federal programs arc identified in the summary of auditors' results section ofthe accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs is the responsibility of the Fishers Island Ferry District's management. Our
responsibility is to express an opinion on the Fishers Island Ferry District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-
profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that
could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about the Fishers Island Ferry District's, compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion. Our audit does not provide a legal determination of the Fishers Island Ferry District's, compliance with
those requirements.
In our opinion, the Fishers Island Ferry District complied, in all material respects, with the requirements referred to above
that are applicable to each of its major federal programs for the year ended December 31, 2006.
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Internal Control Over Compliance
The management orthe Fishers Island Ferry District is responsible for establishing and maintaining effective internal
control over compliance with the requirements oflaws, regulations, contracts and grants applicable to federal programs.
In planning and performing our audit, we considered the Fishers Island Ferry District's internal control over compliance
with requirements that could have a direct and material effect on a major federal program in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control
over compliance in accordance with OMB Circular A-133.
Our consideration afthe internal control over compliance would not necessarily disclose all matters in the internal control
that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one
or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in
relation to a major federal program being audited may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions. We noted no matters involving the internal control over
compliance and its operation that we consider to be material weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the basic financial statements of the Fishers Island Ferry District as of and for the year ended December
31,2006, and have issued our report thereon dated May 22,2007. Our audit was performed for the purpose offorming
an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of
the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial
statements taken as a whole.
This report is intended solely for the information and use of the management, Board of Commissioners, and cognizant
audit agencies, is not intended to be, and should not be used by anyone other than these specified parties.
,5::-dL~-.. &J~> ~ A'",y~ / /, ( .
DOHERTY, BEALS & BANKS, r.c.
May 22, 2007
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DOHERTY, BEALS & BANKS, P.c.
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF THE TOWN OF SOUTH OLD
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2006
Federal Grantor
Pass-through Grantor
Program Title
Federal
CFDA
Number
Pass-Through
Grantor's
Number
U.S. Department of Transportation
Direct:
Airport Improvement Program
20.106
N/A
U.S. Department of Homeland Security
Pass through New York Department of Transportation
Urban Areas Security Initiative
Project 504 -New London Project 97.008
N/A
TOTAL EXPENDITURES OF FEDERAL A WARDS
See notes to schedule.
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DOHERTY, BEALS & BANKS, r.c.
Federal
Expenditures
$555,308
$235.275
$ 790.583
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
fOR THE YEAR ENDED DECEMBER 31, 2006
BASIS Of PRESENT A nON
The accompanying schedule of expenditures offederal awards includes the federal grant activity ofthe Fishers
Island Ferry District, a component unit of the Town of Southold, and is presented on the accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements ofOMB Circular
A-I33, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
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DOHERTY, BEALS & BANKS, P.c.
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2006
SECTION I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: unqualified
Internal control over financial reporting:
Material weakness(es) identified?
_ yes X none reported
Reportable condition(s) identified that are
not considered to be material weaknesses?
_ yes X none reported
Noncompliance material to financial statements
noted?
yes X no
Federal AH'ards
Internal control over major programs:
Material weakness(es) identified?
__yes Xno
Reportable condition(s) identified that arc
not considered to be material weakncss(es)?
_ yes X none reported
Type of auditor's report issued on compliance for major programs: unqualified
Any audit findings disclosed that are required to be
reported in accordance with section 51 O(a)
of Circular A-133?
.__ yes X no
Identification of major programs:
CFDA Number(s)
Name of Federal Program or Cluster
20.106
Airport I mprovernent Program
Dollar threshold used to distinguish between
type A and type B programs:
$300,00000
Auditee qualified as low-risk auditec?
Ayes ~no
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DOHERTY, BEALS & BANKS, P.c.
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2006
SECTION II - Financial Statement Findings
No findings or questioned costs are reported.
SECTION 111- Federal Award Findings and Questioned Costs
No findings or questioned costs are reported.
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DOHERTY, BEALS & BANKS, p,c.
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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Board of Directors
Fishers Island Ferry District
Fishers Island, NY 06390
We have audited the financial statements of the Fishers Island Ferry District, a component unit of the Town of South old,
as of and for the year ended December 31,2006, and have issued ourreport thereon dated May 22,2007. 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fishers Island Ferry 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 could 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 that are required to be reported under Government Auditing Standards.
Internal Control over Financial Reporting
]n planning and performing our audit, we considered the Fishers Island Ferry District's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion 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 would not necessarily disclose all matters in the internal control that might be
material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or
fraud in amounts that would be material in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to be material
weaknesses.
This report is intended for the information of the board of commissioners, management, and cognizant audit agencies and
is (tU:t,/ldced to be and ShOU,ld no~, he ~S~d by:nyone other than these specified parties.
U{tL~t; L~L < /.~j~, oJ <
J/ ,
DOHERTY, BEALS & BANKS, PC
May 22. 2007
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DOHERTY, BEALS & BANKS, P.c.