HomeMy WebLinkAbout2007 FIFD
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RECEIVED
' AL'G 5 2008
Southold Toem Cie
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FISHERS ISLAND FERRY DISTRICT
' A COMPONENT UNIT OF
THE TOWN OF SOUTHOLD
FINANCIAL STATEMENTS
' DECEMBER 31, 2007
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O H E RTY
' EA LS 8~
A N KS, P_C_
CERTIFIED PUBLIC
' ACCOUNTANTS
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FISHERS ISLAND FERRY DISTRICT
A COMPONENT UNIT OF
THE TOWN OF SOUTHOLD
FINANCIAL STATEMENTS
DECEMBER 31, 2007
CONTENTS
Independent Auditor's Report ........................................................................................................................................ l
Statement of Net Assets .................................................................................................................................................2
Statement of Revenues, Expenses, and
Changes in Ne[ Assets ................................................................................................................................................3
Notes to Financial Statements .......................................................................................................................................4
DOHERTY, BEALS & BANKS, P.C.
CARL A. BANKS, CPA
STACEYL CUALTIERI, CPA
1 KATHLEEN A. STEAMER, CPA
DAVID 3. MICELI, CPA
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Board of Commissioners
Fishers Island Ferry District
Fishers Island, NY 06390
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DOHERTY, BEALS 4Sc BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
I87 WILLIAMS STREET
POST OFFICE BOX 59
NEW LONDON, CONNECTICUT 06320
INDEPENDENT AUDITOR'S REPORT
(860)447-2035
FAX (860) 444-7086
W W W.DBBCPA.COM
' We have audited the accompanying financial statements of the Fishers Island Ferry District, (a component unit of TheTown
of Southold) as of and for the year ended December 31, 2007, which collectively comprise the District's basic financial
statements as listed in the table of contents. These financial 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 financial audits contained in GovernmentAuditingStandards,issued bythe 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
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, 2007, and the results of its operations for the year then ended inconformity
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 29, 2008, 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, grants 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 no[ 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
considering the results of our audit.
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' DOHER ,-BEALS & BANKS, P.C.
' May 29, 2008
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FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT OF TOWN OF SOUTHOLD
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2007
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
Dtie to other funds
Judgements and claims payable
Wages payable
Bond anticipation notes
Genera] obligations bonds payable
TOTAL LIABILITIES
NET ASSETS
Investments in fixed assets
Unrestricted (deficit)
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
See notes to fdnancia! statements.
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DOHERTY, BEALS & BANKS, BC.
$ 635,005
64,422
933,870
205,649
66,068
41,717
19,485,811
2,952,873
(5,922,553)
$ 18,462,862
$ 1,081,073
440,371
34,367
150,000
253,633
1,500,000
2,550,000
6,009,444
16,557,849
(4,104,431)
12,453,418
$ 18,462,862
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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, 2007
OPERATING REVENUES
Operations
Charters
Mail
Theater
O[herrevenues
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Personnel
Employee benefits
Equipment maintenance
Contractual services
Depreciation
Airport
Theater
Mail
Insurance
Property tax
Repairs -docks
Bond payments
Administration
Insurance claims
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES)
Interest income
Capital grants
Property taxes
Interest expense
TOTAL OPERATING REVENUE (EXPENSES)
CHANGE [N NET ASSETS
NET ASSETS -BEGINNING
NET ASSETS -ENDING
See notes to financial statements.
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DOIiERTY', BEALS & BANKS, P.C.
$ 2,453,526
16,014
18,475
13,382
53,383
2,554,780
1,156,584
332,711
158,002
530,409
582,608
18,959
16,405
10,200
71,446
45,389
73,373
153,650
29,658
7,153
3,186,547
(631,768)
22,479
1,248,109
590,000
(8,258)
1,852,330
1,220,562
11,232,856
$ 12,453,418
' FISHERS ISLAND FERRY DISTRICT
NOTES TO F[NANCIAL STATEMENTS
' DECEMBER 31, 2007
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
' Purpose
The Fishers Island Ferry District operates through the Town of Southold as an organization exempt from income tax.
It is a component unit of the Town of Southold. The Fishers Island Ferry District's function is to provide residents of
Fishers Island with transportation to and from Fishers Island, New York, and New London, Connecticut.
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 StatementNo. 34 of the Government Accounting
Standards Boazd, 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 prepazation 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 ofassets
and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and
revenue and expenses during the reporting period. Actual results could differ from those estimates.
' 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 of the Organization's assets is calculated using the straight-line method over the estimated useful lives
of the assets ranging from five to thirty yeazs.
2. CONCENTRATION OF CREDIT RISK
' The Organization maintains cash balances at several financial institutions. Accounts at each institution aze insured by
the Federal Deposit Insurance Corporation up to $100,000. At December 31, 2007, the Organization's uninsured
cash balances total $529,818.
' 3. PROPERTY AND EQUIPMENT
' Property, plant and equipment are recorded at cost and consist of the following classes of assets:
Land $ 47,717
Buildings 19,485,811
Machinery and Equipment 2,952,873
Total Property and Equipment $ 22,486,401
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' DOHERTY, BEALS & BANKS, P.C.
' FISHERS ISLAND FERRY DISTRICT
t NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007
' 4. BONDS PAYABLE
' Serial Bonds dated March 8, 2005. Denominations maturing on September 1"each year through 2021,
interest rate is 3.75%. The outstanding balance on [he bonds at year-end is $2,550,000.
' The maturities of the bonds for the next five years is as follows:
2008 $ L78,125
2009 178,125
' 2010 178,125
2011 178,125
20]2 178,125
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 beconverted tolong-term obligations within five years after
' the original issue date. However, BAN's issued for assessable improvement projects maybe renewed for periods
equivalent to the maximum life ofthe permanent financing, provided that stipulated annual reductions of principal are
made.
' Interest Budget
Description Amount Rate Appropriations Bonds
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New London Terminal Project
TOTAL
5. RETHtEMENT SYSTEM
Plan Description
$ 1,500,000 2.75%
$ 1,500,000
$ 1,500,000
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 of the 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.
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DOHERTY, BEALS & BANKS, P.C.
' FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007
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5. RETIREMENT SYSTEM(continued)
t Funding Policy
The Systems are noncontributory except for employees who joined the New York State and Local Employees'
Retirement System afterJuly27,1976, who contribute3%oftheirsalary. Under the authorityoftheNYSRSSL,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 [o 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 $ 92,029 in 2007.
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 17-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.
' 6. 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 aself-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
$152,378 was paid on behalf of 2 retirees and 19 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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t DOHERTY, BEALS & BANKS, P.C.