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HomeMy WebLinkAbout2007 FIFD 1 RECEIVED ' AL'G 5 2008 Southold Toem Cie ' FISHERS ISLAND FERRY DISTRICT ' A COMPONENT UNIT OF THE TOWN OF SOUTHOLD FINANCIAL STATEMENTS ' DECEMBER 31, 2007 1 O H E RTY ' EA LS 8~ A N KS, P_C_ CERTIFIED PUBLIC ' ACCOUNTANTS 1 1 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 1 Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 1 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. ~ e /J~ ' DOHER ,-BEALS & BANKS, P.C. ' May 29, 2008 1 1 I 1 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. -2- 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 1 t 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. -3- 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 -4- ' 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 1 C 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. -5- DOHERTY, BEALS & BANKS, P.C. ' FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 1 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. 1 1 1 ' -6- t DOHERTY, BEALS & BANKS, P.C.