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HomeMy WebLinkAbout2007 RECEIVED L „~- `~ Southold Town Clem ' Southold Fire District Financial Statements (Regulatory Basis) with Independent Auditors' Report December 31, 2007 i 1 t SOUTHOLD FIRE DISTRICT Table of Contents December 31, 2007 Page Independent Auditors' Report Basic Financial Statements (Regulatory Basis) Annual Financial Report Update Document ~ Notes to Financial Statements 2g Other Supplementary Information Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual -General Fund 3g 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 40 Summary Schedule of Prior Findings 42 Schedule of Findings 43 Corrective Action Plan 44 L10ffce120,000's1254001FInancia1120071Financia107.doc vl~~~_i ~~~r a ~~ui i r~ cr,~ COUG H LI N FOU N DOTOS ~~~~~~~ ~ ~,~~~,~~~I Ci;~ CULLEN & DANOWSKI, LLI' ulr.laTOrun;~ rii~~~.cr~ CERTIFIED PUBLIC ACCOUNTANTS PI'N'K I. ROI~RIGUf/_CPrA AIAV 1'U. CI'A INDEPENDENT AUDITORS' REPORT t 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 (District), as of and for the year ended December 31, 2007, which are the District's basic financial statements. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on the 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 consideration of ' internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting. Accordingly, we express no such opinion. 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 financial statements using accounting practices prescribed and permitted by the New York State Office of the State Comptroller, which is a comprehensive basis of accounting other than 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, 2007, 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, 2007, 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 May 20, 2008, on our consideration of the Southold Fire District's internal control over financial reporting and 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 integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in assessing the results of our audit. The other supplementary information on page 39 is not a required part of the basic financial statements but 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. Io~O Rlril Il 112. I UI:I Illl I I:u~~ Sf VI-IC1N. ill AA 1'tlla Il~;o-30r,U I'llc)iA'L: 031 -4~ i33U0 ~ I VA b31 -I, 3 Itio3 ~ lVAAA1C~fU)C C~~~1 ' Our audit was conducted for the purpose of forming opinions on the Southold Fire District basic financial statements. The accompanying summary schedule of prior findings and corrective action plan are presented for purposes of additional analysis as required by Government Auditing Standards and are not a required part of the basic financial statements of Southold Fire District. The summary schedule of prior findings and corrective action plan have not been ' subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. ' May 20, 2008 i 1 1 1 1 i D n U ' All Numbers in This Report Have Been Rounded To The Nearest Dollar LJ t ANNUAL FINANCIAL REPORT UPDATE DOCUMENT For The FIRE DISTRICT of Southold County of Suffolk For the Fiscal Year Ended 12/31/2007 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 Page 1 1 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 2006 and has been used by the OSC as the basis for preparing this update document for the fiscal year ended 2007: (A) GENERAL (H) CAPITAL PROJECTS ' (K) GENERAL FIXED ASSETS (TA) AGENCY (W) GENERAL LONG-TERM DEBT ' All amounts included in this update document for 2006 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) Investment Certification 5) Bank Reconciliation 6) Local Government Questionnaire All numbers in this report will be rounded to the nearest dollar. Page 2 r r i 1 1 1 1 1 1 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Balance Sheet Code DdsGr~piion 2046 pCade ', 21307 Assets Cash 448.167 A200 399,640 TOTAL Cash 448,167 399,640 Accounts Receivable 136 A380 TOTAL Other Receivables (neq 136 0 Due From Other Funds A391 TOTAL due From Othpd: Funds 0 ~ Prepaid Expenses 14,181 A480 14,222 TOTAL Prepaid Expenses 14)181 14,222 TOTAL Assets 482,484 413,864 Page 3 OSC Municipality Code 471179008000 ' Southold FIRE DISTRICT Annual Update Document ' For the Fiscal Year Ending 2007 (A) GENERAL Balance Sheet Code pescripGOn 2Q08 EdpCode 200 Liabilities And Fund Equity Accounts Payable 35,747 A600 56,172 TOTAL A,~,counts Payable 35,747 b6,172 Accrued Liabilities 4.686 A601 5,139 TOTAL Accrdetl Liabilities 4,686 5,139 Due To Other Funds 711 A630 711 TOTAL Oue:ToOtber Funds 711 711 ' Deferred Revenues 160,581 A691 TO7`AL Referred Revenues 160,581; 0 TOTA!-Liabilities 201,725 62,022 Reserve For Encumbrances 20,000 A821 58,53C TOTAL Reserve For Encumbrances 20;000 58,530 Miscellaneous Reserve (specify) A889 14,222 ' TOTAL-Special Resewes OF 14,222 Unreserved Fund Balance Unappropriated 240,759 A911 279,08E TOTAL~tTnreservackFuntl Balance -~Jnappropriated 240,758 ~ 278,08E TOTAL Funtl Equity 260,759 351;841 TOTAL Liabilities And Fund Equity. 462,484,. 413,86: 1 ' Page 4 OSC Municipality Code 471179008000 Southold FIRE DISTRICT ' Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation Cede DescrptSOn 2006 EdpCode 2007 Detail Revenues And Other Sources Real Property Taxes 1,337,409 A1001 1,479.355 TOTAL:f{ealprpperty Taxes 1,337,409 1,479,355 Interest And Earnings 30,097 A2401 44,223 Rental of Real Property 18,315 A2410 17,229 TOTAL Use of Monay And Property 48,412 61,452 ' Sales of Equipment 11,658 A2665 Insurance Recoveries 4,556 A2680 3,000 TOTAL Sale of Property And Compensation For Loss ' ' 16,214 3,000 ' Refunds of Prior Year's Expenditures A2701 Unclassified (specify) 25,000 A2770 TOTAL Miscellaneous Locaf Sources 25,000 0 Interfund Revenues A2801 TOTAL Intertuntl.Revenues - 0 8 St Aid Other (specify) 5 000 A3089 ' TOTAL State Afdr. 5,000 4 TOTAL. Revenues 1,432,035 ... 1,543,807 Interfund Transfers 449 A5031 TOTALinterfund Transfers 449 t TOTAL Other Sources A49 f ' TOTAL Detail Revenues And Other Sources 1,432,484 1,543,801 1 Page 5 OSC Municipality Code 471179008000 r Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation Code OescripEian 2006 Ed¢Code '. 2007 Detail Expenditures And O[her Uses Fire, Pers Serv 179,764 A34101 202,400 Fire, Equip & Cap Outlay 119,883 A34102 97,401 Fire, Contr Expend 402,160 A34104 438,843 TOTAL Eire 701,607 738,844 TOTAL Public Safety 701;807 738'644 State Retirement System 17,354 A90108 13,303 Local Pension Fund Empl Bnfts 277,660 A90258 265,116 Social Security, Employer Cont 15,173 A90308 16.234 Worker's Compensation, Empl Bnfts 42,348 A90408 43,354 Hospital & Medical (dental) Ins, Empl Bnft 14,965 A90608 17,800 TOTAI.,Employee Benefits Debt Principal, Serial Bonds 387,500 355,807 100,000 A97106 100,000 TOTAL 08bt. pr[ncipai .100;000 1D0,000 Debt Interest, Serial Bonds 62,025 A97107 58,275 TOTAL Debt Interest fi2,025 58,275 TOTAL Expenditures 1,231,332 1,252,726 Transfers, Other Funds 349 A99019 200,000 TOTAL Operating Transfers 349 2D0,000 TOTAL Other Uses 349 200,000 TOTAL DetptFExpenditures MdOther Uses 1,231,681 1,452,726 Page 6 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Changes in Fund Equity Gradei)eserlp8an 2008 EdpCade 2007 ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year 59,956 A8021 260,759 Prior Period Adj -Decrease In Fund Equity A8015 Restated Fund Equity -Bey of Year 59,956 A8022 260,759 i ADD -REVENUES AND OTHER SOURCES 1,432,484 1,543.807 DEDUCT -EXPENDITURES AND OTHER USES 1,231,681 1,452,726 Fund Equi4y-End of Year 260,759 A8029 351,840 1 Page 7 OSC Municipality Code 471179008000 i >~ 1 1 (A) GENERAL Budget Summary Code Oescrptian Estimated Revenues And Other Sources Est Rev -Real Property Taxes Est Rev -Use of Money And Property TOTAL. Estimated Revenues TOTAL. Estimated Revenues And Other Sources Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 2007 EdpCode i 2008: 1,479,335 A1049N 1.598,025 33,540 A2499N 33,000 :7;812,875 1;ff31,026 1,512,875 1,831,025 Page 8 OSC Municipality Code 471179008000 (A) GENERAL Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 Budget Summary _ bode Oeseriptian I2007 J EdPCode 2008" Appropriations And Other Uses App -Public Safety 985,400 A3999N 1,040,500 App -Employee Benefits 369.200 A9199N 411.000 App -Debt Service 158,275 A9899N 179,525 TOTAL Flppropriations ~ 1,51,2,875 1,631,0?~,5 ' TOTAL Appropriations AndOther Uses 1,512;675 1,631,025 ~~ 1 Page 9 OSC Municipality Code 471179008000 1 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Balance Sheet ~aa~ oesa~a5an _ 2t1f~i ~~eoae 2007 Assets Due From Other Funds 506 H391 253 TOTAL Due From Other Funds 606: 263 Cash Special Reserves 205,842 R230 416,731 TOTAL,Restrif;ted A~s~ks 205,842 416,731 TOTAL Assets206,348 475,984 Page 10 OSC Municipality Code 471179008000 i 1 i 1 1 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Balance Sheet Code DescnpGCn _ 20tt6 +Ede>Code ', 200 Liabilities And Fund Equity Due To Other Funds 253 H630 TOTAL Due: To Other Funds 263 0 TOTAL Uabifities 263 0 Capital Reserve 206,095 H878 416,984 TOTAL Special Reserves 206,095 416,984 Unreserved Fund Balance Unappropriated H911 TOTAL Unreserved Fund Balance -Unappropriated 0 0 TOTAL Fund Equity - - 206,095 415,984 TOTAGLiabilitiesAnd Fund Equity 206,348 416,984 Page 11 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Results of Operation Co<9e Qescriptidn 2006 EdpCOde 2007 Detail Revenues And Other Sources Interest Antl Earnings 9.694 H2401 10,889 TOTAL Use of Money And Property 9,694 10,869 TOTAL Revenues 9,894 10,889 Intertund Transfers 27,147 H5031 200,000 TOTAL Interfund.Ttansfars 27,147 200,000 TOTAL Otllerr5oilrces 27,147 200,000 TOTAL Detail Reventes And Other Sources 36,841 210,889 1 1 Page 12 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Results of Operation Code OescrpGan 2006 EdpCode 2007 '.. Detail Expenditures And Other Uses Fire, Equip & Cap Outlay 38.499 H34102 TOTAL Fire 38,499 0 Ti;k'TAL Public Safety 38,498 0 TOTAL Expentlitures 38,499 0 Transfers, Other Funds 27,247 H99019 TOTAL, Operating Transfers 27,247 0 TOTAL Other Uses 27,247 0 T07AL OBtaiL Expenditures And Other Uses `85,746 0 Page 13 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Changes in Fund Equity Code Pesar{ptian 2006 EdpCade 2007 ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity -Beginning of Year 235,000 H8021 206,095 Restatrd Fund Equity -Beg of Year 235,000 H0022 206,095 ADD -REVENUES AND OTHER SOURCES 36,841 210.889 DEDUCT -EXPENDITURES AND OTHER USES 65.746 Fund Equity -End of Year 206,095 H8029 416,984 CJ i~~ ~I Page 14 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 ' (K) GENERAL FIXED ASSETS Balance Sheet Cody CJescr(~i€ion 26p6 >wt~pGbde ~; 2A07 Assets Land 206,892 K101 258,752 Buildings 5,303,454 K102 3,098278 Machinery & Equipment 4,618,433 K104 2,830,590 ' TOTAL Eixed Assets (net) 16,128,779 6,997,620 TOTAL Assets 96,728,779 6,~9Sfi,626 ~i Page 15 OSC Municipality Code 471179008000 ' Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (K) GENERAL FIXED ASSETS Balance Sheet Code pesuriptron 24Q6 ~dpC6dz 200 Liabilties And Fund Equity Total NOn-Current Govt Assets 10,128,779 K159 6.187,620 T~JTALinvestments in Non-Current Government Assets i0,t28,77Q:. 6,187,620 TOTAL Fund Equity ~ '0,128,779 6,187,840 TOTAL Liabilities And Fund Equity 10,128,779' 6,187,620 ~J 1 1 Page 16 OSC Municipality Code 471179008000 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (TA) AGENCY Balance Sheet Code pescriptEOn 2RQ& dpCode 2Qfl7 Assets Service Award Program Assets 2,252,530 TA461 2,377,025 TOTAL Investments 2,262,630 2,37T,p2'_ ' Due From Other Funds 458 TA391 45F TOTAL Due From OCltier Funds 458 459 TOTAL Assets ~' 2;262,986 2,377,483 C ' Page 17 OSC Municipality Code 471179008000 1 Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 (TA) AGENCY Balance Sheet Code 1)escripUan 2406 EdpCode 2447" Liabilities And Fund Equity Service Awards 2,252,530 TA13 2,377.025 Other Funds (specify) 458 TA85 458 TOTAL Agency Liabilities 2,252;988 2,377,483 TOTAL. Liatii3ifles 2,252,988 2,377,483 TOTAL Lidptlities AbdFund Equity 2,?62,988 2,377,483 Page 18 OSC Municipality Code 471179008000 ' Southold FIRE DISTRICT Annual Update Document ' For the Fiscal Year Ending 2007 (W)GENERAL LONG-TERM DEBT Balance Sheet Code OeSerpGon 2PQ6 £dpCode 2007 Assets Total Non-Current Govt Liabilities 1,500,000 W129 1,400,000 TOTAL Provision Tolle Made In Future Budgets 1,500,000 1,400,000 TOTAL Assef5 1,500,000 1,400,000 C LJ ' Page 19 OSC Municipality Code 471179008000 ' (W) GENERAL LONG-TERM DEBT Southold FIRE DISTRICT Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet G4de Lfescridtion 2pt38 >»dpCOde ', 2007 .. Liabilities And Fund Equity ' Bonds Payable 1,500,000 W628 1,400.000 TOTAL Bond And Long Term Liabilities 1.,500,000 1,400,000 ' TOTAL Liabitities- 1,500,000.:. 1,400,000 TOTAL Liabilities And FundEquity 1,500,000 1,A00,000 CJ 1 1 lJ l_ J ' Page 20 OSC Municipality Code 471179008000 Southold FIRE DISTRICT ' Financial Comments For the Fiscal Year Ending 2007 ~A) GENERAL A_diustment Reason Account Code A8015 No prior period adjustments were made in 2007. 1 Page 21 OSC Municipality Code 47' ' Southold FIRE DISTRICT Statement of Indebtedness For the Fiscal Year Ending 2007 Indebtedness Not Exempt From Constitution al Debt Limit ' Bond No. 2003000001 EDPCODE Amount. Month and Year of Issue 12/1/2002 ' Purpose of Issue +ements to e xisting FH Current Interest Rate 3.7500 Outstanding Beginning of Year 2P18771 1,500,000 Issued During the Fiscal Year ' (do not include renewals here) 2P18773 0 Paid During the Fiscal Year (do not include renewals here) 2P18775 100,000 , Outstanding End of the Fiscal Year 2P18777 1,400,000 Final Maturity Date 12/1/2017 'Total Bond Amount Outstanding Beginning of Year 1,500,000 Issued During Fiscal Year 0 ,Paid During Fiscal Year 100,000 Outstanding End of Year 1,400,000, t 0 ' Total of Alllndebtedness.>.~....~ ....................>..,........,......_..,..._..«~,........,._,....~..,....,.,,..=.w.~,.......,. Includes Total of Bonds and Notes -Exempt and Not Exempt Total Bond ' Outstanding Beginning of Year Issued During Fiscal Year Paid During Fiscal Year ' Outstanding End of Year 1 L J Amount 1, 500, 000 0 100,000 1,400, 000 Page 22 OSC Municipality Code 47117900800 C t I~ Southold FIRE DISTRICT Maturity Schedule For the Fiscal Year Ending 2007 Page 23 ' Southold FIRE DISTRICT Schedule of Securities for Collateralization t For the Fiscal Year Ending 2007 i General Municipal Law, Section 10 as amended by chapter 708 Laws of 1992 lists the types of securities which may 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. ' Yes 1. 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. ' Page 24 OSC Municipality Code 471179008000 1 1 Southold FIRE DISTRICT Schedule of Time Deposits and Investments For the Fiscal Year Ending 2007 EDP Code Amount CASH: On Hand 922001 $16.00 Demand Deposits 922011 $254,287.00 Time Deposits 922021 $585,787.00 Total $840,090.00 COLLATERAL FDIClnsurance 922014 $129.421.00 Collateralized with securities held in possession of municipality or its agent 9Z2014A $785,169.00 Total $914, 590.00 INVESTMENTS: -Securities (450) Book Value (cost) Market Value at Balance Sheet Date 924501 924502 Collateralized with securities held in possession of municipality or its agent Repurchase Agreements (451) Book Value (cost) Market Value at Balance Sheet Date Collateralized with securities held in possession of municipality or its agent 9Z4504A 924511 924512 9Z4514A Page 25 OSC Municipality Code 471179008000 LI Southold FIRE DISTRICT Investment Certification For the Fiscal Year Ending 2007 DEFINITIONS: Repurchase Agreement - A generic term for an agreement in which a government entity (buyer-lender) transfers cash to abroker-dealer or financial institution (seller-borrower); ' the broker-dealer or financial institution transfers securities to the entity and promises to repay the cash plus interest in exchange for the same securities or for different securities. Reverse Repurchase Agreement - An agreement in which abroker-dealer or financial institution (buyer-lender) transfers cash to a government entity (seller-borrower); the entity transfers securities to the broker-dealer of financial institution and promises ro repay the cash plus interest in exchange for the same securities or different securities. i 1 1) Has your Local Government adopted an investment policy as required by General Municipal Law, Section 397 2) The following investments are permitted by your investment policy. Obligations of the UNITED STATES `Obligations of the U.S. Government Agencies, guaranteed by the UNITED STATES Government `Obligations of the STATE of NEW YORK Obligations of other NEW YORK STATE Local Governments ` Other 3) Do you engage in reverse repurchase agreements? q) Are Repurchase Agreements authorized by your investment policy? Name: Title: Phone Number: Karen Helinski Treasurer (631)765-4305 RESPONSE Yes Yes Yes Yes Yes No No ' Page 26 CSC Municipality Code 471179008000 Southold FIRE DISTRICT Bank Reconciliation For the Fiscal Year Ending 2007 Include All Checking, Savings and C.D. Accounts Bank Add: Less: Adjusted Account Bank Deposit Outstanding Bank Number Balance In Transit Checks Balance ' 500025531 $29,421 $0 $23,719 $5,702 580001352 $224,866 $0 $0 $224,866 ' NY-01-0564-0001 $169,056 $0 $0 $0 $169,056 433 $386 NY-01-0564-0002 $386,433 $0 , NY-01-0564-0003 $30,298 $0 $0 $30,298 ' Total Adjusted Bank Balance $816,355 Petty Cash $16.00 ' Adjustments $.00 Total Cash 9ZCASH $816,371 Total Cash Balance All Funds 9ZCASHB $816,371 ' 'Must be equal 471179008000 Page 27 OSC Mun icipality Code Southold FIRE DISTRICT Fire District Questionnaire For the Fiscal Year Ending 2007 I Response 1) Has your district adopted a written procurement prolicy and is it complied with? Y ' 2) Has your district contracted to have an independent audit of its financial statements? Y If not, has the Board of Fire Commissioners performed an internal audit of the Treasurer's records and reports? ' 3) Does your district have a written travel policy and is it complied with? Y 4) Are monthly bank reconciliations performed? Y 5) What is your districPs FYE 2007 statutory spending limitation margin (amount)? $2,585,720 g) Does your fire district have a Length of Service Award Y Program (LOSAP) for volunteer firefighters? 1 If so, how are the LOSAP funds invested? Marketable Securities N Annuities Y Life Insurance Y Other (describe) i 1 1 1 1 1 1 D 1 ' Page 28 OSC Municipality Code 471179008000 i SOUTHOLD FIRE DISTRICT Notes to Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Southold Fire District (District), as of and for the year ended December 31, 2007, have been prepared using accounting practices prescribed and permitted by the New York State Office of the State Comptroller, which is a comprehensive basis of accounting other than 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 only the modified accrual basis of accounting. This method differs from GAAP, which requires the preparation of additional financial statements using the accrual basis of accounting. The accrual basis financial statements require 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 do 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 a 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 is 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 exercises 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 aself-balancing set of accounts. The District records its transactions in the fund types described below: ' Governmental Funds Governmental funds are those through which mast 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: 29 - ri ._~ SOUTHOLD FIRE DISTRICT ' Notes to Financial Statements (Continued) 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 Funds 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 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 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 District. C. Basis of Accounting and Measurement Focus 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). All governmental funds are accounted for using a current financial resources focus. With this measurement focus, only current assets and current liabilities are included on the balance sheet. Operating statements present increases (i.e., revenues and other financing ' sources) and decreases (i.e., expenditures and other financing uses) in fund balance. 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 the related liability is incurred except that expenditures for prepaid expenses and inventory-type items are recognized at the time of purchase, and principal and interest on indebtedness and compensated absences, such as vacation and sick leave which vests or accumulates, are not recognized as expenditures until due and payable. ' D. Property Taxes Real propert~ 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 from January to June. The county of Suffolk is responsible for all uncollected taxes. -30- SOUTHOLD FIRE DISTRICT ' Notes to Financial Statements (Continued) E. Interfund Transactions The operations of the District include transactions between funds. These transactions may be temporary in nature, such as with interfund borrowings. The District typically loans resources between funds for the purpose of providing cash flow. These interfund receivables and payables are expected to be repaid within one year. Permanent transfers of funds include transfers to provide financing or other services. This includes the transfer of unrestricted general fund revenues to finance various programs that the District must account for in other funds in ' accordance with budgetary authorizations. A detailed disclosure by individual fund for interfund receivables, payables, transfers in and transfers out is provided subsequently in these Notes to Financial Statements. F. Use of Estimates ' The preparation of financial statements in conformity with a comprehensive basis of accounting other than 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. G. Cash ' Cash consists of cash on hand, demand deposits and short-term investments with original maturities of three months or less from date of acquisition. H. 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. 1 I. General Fixed Assets The General Fixed Assets section of the Annual Financial Report Update Document (General Fixed Asset ' Account Group) reports the District's capital assets at original cost. Capital thresholds, the dollar value above which asset acquisitions are added to the capital asset accounts are reported as follows: Capitalization Threshold Buildings and improvements ~ 1,000 Site improvements 1,000 Furniture and equipment 1,000 ' J. Long-Term Obligations The liabilities reported in the general long-term debt account group include the District's general obligation bonds, obligations under lease /purchase and other financing arrangements and other long-term liabilities including compensated absences. The District issues general obligation bonds, which are full faith and credit debt, to fund the acquisition or construction of capital assets (land, buildings, improvements and equipment). This enables the cost of these assets to be borne by the present and future taxpayers receiving the benefit of the capital assets. -31- l' SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) K. fund Balance -Reserves and Designations Fund balance reserves are created to satisfy legal restrictions, plan for future expenditures or relate to resources not available for general use or appropriation. These reserve funds are established through Board action or voter approval and a separate identity must be maintained for each reserve. Earnings on the invested resources become part of the respective reserve funds; however, separate bank accounts are not necessary for each reserve fund. Fund balance reserves currently in use by the District include the following: 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. Reserve for Prepaid I' L~ 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 specific or type of capital improvement or acquisition reserve is accounted for in the capital projects fund. cost of construction, reconstruction or acquisition of a of a specific item or items or type of equipment. The 2. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY '' A. Budgets C~ The District administration prepares a proposed budget for approval by the Board for the general fund.. the only fund with a legally adopted budget. Budgets are adopted annually on a basis consistent with GAAP. Appropriations are adopted at the program line item level. Appropriations established by the adoption of the budget constitute a limitation on expenditures (and encumbrances) that may be incurred. Appropriations authorized for the year are increased by the amount of encumbrances carried forward from the prior year. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbrances will lapse if not expended in the subsequent year. Appropriations authorized for the current year are increased by the planned use of specific reserves, and budget amendments approved by the Board as a result of selected new revenue sources not included in the original budget (when permitted by law). These supplemental appropriations may occur subject to legal restrictions, if the Board approves them because of a need that exists which was not determined at the time the budget was adopted. No supplemental appropriations occurred during the year. A summary of the general fund budget is as follows: Budget approved by Board of Commissioners $ 1,512,875 Encumbrances from prior year 20,000 Final budget $ 1,532,875 B. 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. -32- SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) 1 3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS ' 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 i[s 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 municipalities. Investments are stated at fair value. 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. Investment pool: The District participates in amulti-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. Total investments of the cooperative as of December 31, 2007 are $1,244,361,431, which consisted of $357,671,333 in repurchase agreements, $651,999,174 in U.S. Treasury Securities, $9,690,924 in U.S. Government Guaranteed Securities and $225,000,000 in collateralized bank deposits, with various interest rate and due dates. The following amounts are included as cash in the District's funds: Carrying Fund Amount General fund $ 169,057 Capital projects fund 416,731 $ 585,788 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. 33 - General fund $ Capital projects fund Fiduciary fund _ ~j LJ IJ 4. GENERAL FIXED ASSETS SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) On May 21, 2008, the District obtained an independent appraisal of its land, buildings and equipment which valued those assets at original cast. Capital asset balances and activity for the year ended December 31, 2007, were as follows: Balance Balance January 1. December 31, 2007 Additions Deletions 2007 Land $ 206,892 $ 51,860 $ - $ 258,752 Buildings 5,303,454 (2,205,176) 3,098,278 Equipment 4,618,433 - (1,787,843) 2,830,590 $ 10,128,779 $ 51,860 $ (3,993,019) $ 6,187,620 The overall decrease in value in capital assets is based on the reporting change from replacement cost value to original cost. 5. INTERFUND TRANSACTIONS Interfund balances at December 31, 2007, are as follows: Interfund Receivables Payables Transfers In Transfers Out $ 711 $ $ 200,000 253 200,000 458 $ 711 $ 711 $ 200,000 $ 200,000 The District transfers from the general fund to the capital projects fund 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 acast-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, 110 State Street, Albany, NY 12244. 34 - SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) Funding Poles 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 annually certify 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: 2007 2006 2005 ' District contributions $ 12,472 $ 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. Length of Service Award Program (LOSAP) The District established a defined benefit LOSAP for the active volunteer firefighters of the Southold Fire Department. The program took effect on January 1, 1993. The program was established pursuant to Article 11-A of the General Municipal Law. The program provides municipally-funded pension-like benefits to facilitate the recruitment and retention of active volunteer firefighters. The District is the sponsor of the program. The information contained in this note is based on information for the Length of Service Award Program for the plan year ending on December 31, 2007, which is the most recent plan year for which complete information is available. ' Program Description Participation, Vesting and Service Credit ' Active volunteer firefighters who have reached the age of 18 and who have completed 1 year of firefighting service are eligible to participate in the program. Participants acquire a nonforfeitable right to a service award after being credited with 5 years of firefighting services or upon attaining the program's entitlement age. The program's entitlement age is age 62. In general, an active firefighter is credited with a year of firefighting service i t fif i P n s ty po nts. o for each calendar year after the establishment of the program which he or she accumulates are granted for the performance of certain activities in accordance with a system established by the sponsor on the basis of a statutory list of activities and point values. A participant may also receive credit for 5 years of firefighting service rendered prior to the establishment of the program, provided the total entitlement does not exceed the maximum dollar amount established by the Plan. ' Benefits A participant's benefit under the program is the actuarial equivalent of a monthly payment for life equal to $20 multiplied by the person's total number of years of firefighting service. The number of years of firefighting ' service used to compute the benefit cannot exceed forty. Benefits are not payable until the Plan anniversary date of the month after the participant's 62"tl birthday, except in the case of disability or death. The program provides statutorily mandated death and disability benefits. ' -35- SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) ' Fiduciary Investment and Control Service credit is determined by the governing board of the sponsor, based on information certified to the ' governing board by each fire company having members who participate in the program. Each fire company must maintain all required records on forms prescribed by the governing board. The governing board of the sponsor has retained and designated Hometown/RSA Consultants to assist in the ' administration of the program. The designated program administrator's primary responsibility is to administer the plan for the exclusive benefit of the participants and their beneficiaries. Such duties include, but are not limited to, determining eligibility of firefighters to participate in the plan, compute participant entitlement, authorize disbursements to participants, compute necessary contribution amounts, maintain all necessary records and consult with the sponsor and the trustee on long-term investment plans. Disbursements of program assets for the payment of benefits or administrative expenses must be reviewed by the trustee (i.e. the Board of Fire Commissioners) and signed by at least two board members prior to being disbursed by the administrator. ' Program assets are required to be held in trust by LOSAP legislation, for the exclusive purpose of providing benefits to participants and their beneficiaries or for the purpose of defraying the reasonable expenses of the ' operation and administration of the program. The trust agreement is dated February 8, 2005, and the trustee is the Board of Fire Commissioners. Authority to invest program assets is vested in the administrator, with the Board of Fire Commissioners' prior ' written approval. Subject to restrictions in the program document, program assets are invested in accordance with a statutory "prudent person" rule. The program document calls for all investment decisions to be chosen and approved by the trustee, the Board of Fire Commissioners, prior to being invested by the administrator. The sponsor is required to retain an actuary to determine the amount of the sponsor's contributions to the plan. The actuary retained by the sponsor for this purpose is Harbridge Consulting Group, LLC. Portions of the following information are derived from a report prepared by the actuary dated March 14, 2008. Program Financial Condition Assets and Liabilities Actuarial Present Value of Benefits at December 31, 2007 $ 3,361,766 Less: Assets Available for Benefits of total Trust 1.739% $ 41,341 Annuity 75.282% 1,789,470 ' Insurance contracts 22.979% 546,214 Total Net Assets Available for Benefits ' fit T l U f d d B t n un e ene s o a ' Less: Unfunded Liability for Prior Service Unfunded Normal Benefits Prior Service Costs Prior service costs are being amortized over 19 years at a discount rate of 6.00%. 2,377.025 984,741 (984,741) 36 - SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) i Di b t pts and s ursemen s Rece ' Plan Net Assets, Beginning of Year $ 2,252,530 Changes during the year ' + Plan contributions 261,515 + Investment income earned 70,186 +/-Changes in fair market value of investments 3,356 ' -Plan benefit withdrawals (214,162) + Administrative and other fees/charges 3,600 124,495 ' $ 2 377 025 Plan Net Assets, End of Year , , Contributions Maximum amount of sponsor's contribution recommended by actuary: $ 302,229 ' Minimum amount of sponsor's contribution recommended by actuary: 262,355 Amount of sponsor's actual contribution: 261,515 ' Administration Fees Fees paid to designated program administrator ' Fees paid to trustee Fees paid for investment management (if separate from fee paid to trustee) 1 Fee paid to actuary 3,600 Other administration fees (list) ' Normal Costs The actuarial valuation methodology used by the actuary to determine the sponsor's contribution is the unit credit cost method. The assumptions used by the actuary to determine the sponsor's contribution and the ' actuarial present value of benefits are: Assumed rate of return on investment 6.00% Mortality tables used for Withdrawal Disability Retirement Death (actives) Death (nactives) Other None 1994 Group Annuity -Male None None None -37- SOUTHOLD FIRE DISTRICT Notes to Financial Statements (Continued) ' 7. LONG-TERM LIABILITIES Lang-term liability balances and activity for the year are summarized below: Balance Balance Amounts January 1, December 31, Due Within 2007 Additions Reductions 2007 One Year ' Long-term debt: Bonds payable $ 1,500,000 $ $ 100,000 $ 1,400,000 $ 125,000 ' biliti l li ong-term a es. The general fund has typically been used to liquidate ' Bonds payable are comprised of the following: Outstanding at Issue Final Interest December 31. Description Date Maturity Rate 2007 Band 6/24/2002 7/9/2017 3.7 - 4.2% 8 1,400,000 able: for bonds a i t f d bt i i p y ce requ remen s e serv The following s a summary o Fiscal Year Ending December 31, Principal Interest Total 2008 $ 125,000 $ 54,525 $ 179,525 ' 2009 125,000 49,837 2010 125,000 45,150 174,837 170,150 2011 125,000 40,462 165,462 2012 125,000 35,775 160,775 2013 2017 775,000 91,800 866,800 Total $ 1,400,000 $ 317.549 $ 1,717.549 COMMITMENTS AND CONTINGENCIES 8. ' 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; and 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. ' 9. SPENDING LIMITATION The District did not exceed the statutory spending limitation imposed by New Y ork State Law for the year ended December 31, 2007, and the budget for the year ending December 31, 2008. LJ 38 - ' SOUTHOLD FIRE DISTRICT Schedule of Revenues, Expenditures and Encumbrances Budget and Actual -General Fund For the Year Ended December 31, 2007 Final Budget Original Final Variance with Budget Budget Actual Actual REVENUES Real property taxes $ 1,479,335 $ 1,479,335 $ 1,479,355 $ 20 Rental of real property 18,540 18,540 17,229 (1,311) Interest and earnings 15,000 15,000 44,223 29.223 Insurance recoveries 3,000 3,000 Total Revenues 1,512,875 1,512,875 1,543,807 $ 30,932 ' Final Budget Variance with Year End Actual and Encumbrances Encumbrances EXPENDITURES Personal services Equipment 8 capital outlay 204,000 68,000 204,000 68,000 202,400 97,401 $ $ 1,600 (29,401) Fire protection 491,400 491,400 438,843 58.530 (5,973) State retirement 25,000 25,000 13,303 11,697 ' Service award program 300,000 300,000 265,116 34,884 Social security 17,000 17,000 16,234 766 Workers' compensation 50,000 50,000 43,354 6,646 ' Medical & accident insurance 19,200 19,200 17,800 1,400 Debt Service Principal 100,000 100,000 100,000 Interest 58,275 58,275 58,275 - Total Expenditures 1,332,875 1,332,875 1,252,726 58,530 21,619 OTHER USES Operating transfers out 200,000 200,000 200,000 - Total Expenditures and Other Uses 1,532,875 1,532,875 1.452,726 $ 58,530 $ 21,619 Net Change in Fund Balances (20,000) (20,000) 91,081 Fund Balances - Beginning of Year 20,000 20,000 260,759 Fund Balances - ' End of Year $ - $ - $ 351,840 See Independent Auditors' Report 39 vmanr ~ an l r~ r~i;v o COUGH LI N FOU N DOTOS 1~~,~~ I' I>,v~t,v,>~~ ~-1;v CULLEN & DANOWSKI, ~~P "" ~ ~"""'``~"v c i naslon leav-. itFi~ucz c rn CERTIFIED PUBLIC ACCOUNTANTS I't1l.R II RODRI~1~[L. CI'A \I~\~V lC. C~I'\ ' 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, 2007, and have issued our report thereon dated May 20, 2008. As described more fully in Note 1, the Southold Fire District has prepared these financial statements using accounting practices prescribed and permitted by the New York State Office of the State Comptroller, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. 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 Reporting In planning and performing our audit, we considered the Southold Fire District's internal control over financial reporting ' as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Southold Fire District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Southold Fire District's internal control over financial reporting. 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 District's ability to initiate, authorize, record, process, or report financial data reliably in accordance with accounting practices as described more fully in Note 1, such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconsequential will not be prevented or detected by the District'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 District's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first ' paragraph of this section 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 over financial reporting that we consider to be material weaknesses, as defined above. ' 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 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 or other matters that are required to be reported under Government Auditing Standards. 16U RUIiII 112. I'UI:T IPPI'I R~UAi SI.AIII~N. ~'I ti LURK II,.6-3060 -40- I'IIU,AI ail--173 tl0tl ~ 11A till T73~863 ~ lVlVAV.CICf)CC)~41 C~ We noted certain matters that we have reported to the Board of Fire Commissioners and management of the Southold Fire District in a separate letter dated May 20, 2008. This report is intended solely for the use and information of the Board of Fire Commissioners and management of the ' Southold Fire District and the New York State Office of the State Comptroller and is not intended to be and should not be used by anyone other than these specified parties. (:..,.. Q~ ~.. ~5rc.. Q~, e., +~, ww. ~i,~ LLB ' May 20, 2008 ~J CJ ' 41 1 1 1 There were no prior findings. SOUTHOLD FIRE DISTRICT Summary Schedule of Prior Findings For the Year Ended December 31, 2007 42 - ' SOUTHOLD FIRE DISTRICT ' Schedule of Findings For the Year Ended December 31, 2007 ' There are no findings to be reported. 1 1 -43- ' SOUTHOLD FIRE DISTRICT Corrective Action Plan For the Year Ended December 31, 2007 ' A corrective action plan is not required. LJ 1 1 ' 44 -