HomeMy WebLinkAbout2003 FIFDFISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2003
AHERTY
ALS &
NKS. P.O.
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2003
CONTENTS
Independent Auditor's Report ........................................................................................................................................ 1
Statement of Net Assets ................................................................................................................................................. 2
Statement of Revenues, Expenses, and
Changes in Net Assets ................................................................................................................................................ 3
Notes to Financial Statements ....................................................................................................................................... 4
DOHERTY, BEALS & BANKS, P.C.
CARL A, BANKS, CPA
~ITACEY L. GUALTIERI, CpA
KATHLEEN A. STEAI+~ER, CPA
DOHERTY, BEALS & BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
Board of Commissioners
Fishers Island Ferry District
Fishers Island, NY 06390
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying financial statements of the Fishers Island Ferry District, a component unit of The
Town of Southold as of and for the year ended December 31, 2003, 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 Government Auditing Standards, issued by the Comptroller
General of the United Stated. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are fi'ee of material misstatement. An audit includes examining, on a
· test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The District has implemented a new financial reporting model as required by the provisions of Government Accounting
Standards Board Statement No. 34, Basic Financial Statements - and Management 's Discussion and Analysis- for State
and Local Governments, as of December 31, 2003. This results in a change in the format and content of the basic
financial statements.
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, 2003, and the results of its operations for the year then 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 April 29, 2004, 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. 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.
April 29, 2004
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FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT TOWN OF SOUTHOLD
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2003
ASSETS
Cash and investments
Other receivables
Due from grants
Prepaid expenses
Land
Buildings
Machinery and equipment
Less accumulated depreciation
2,593,112
103,659
481,075
35,977
41,717
8,385,776
2,510,700
(4,409,889)
TOTAL ASSETS
$ 9,742,127
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
Other liabilities
Wages payable
Bond anticipation notes
General obligations bonds payable
TOTAL LIABILITIES
NET ASSETS
Investments in fixed assets
Unrestricted (deficit)
TOTAL NET ASSETS
$ 777,648
63,697
198,374
3,000,000
65,141
4,104,860
6,528,305
(891,037)
5,637,267
$ 9,742,127
TOTAL LIABILITIES AND NET ASSETS
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DOHERTY. BEALS & BANKS, P.C.
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, 2003
OPERATING REVENUES
Operations
Charters
Mail
Theater
Other revenues
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
Capital grants
Prope~y taxes
Capital project administration
TOTAL OPERATING REVENUE(EXPENSE)
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
$ 1,619,704
20,946
17,528
14,695
54,312
1,727,185
966,197
247,694
106,018
237,131
317,471
36,587
18,403
5,700
57,411
26,770
57,647
14,853
24,687
6,250
2,122,819
(395,635)
9,384
549,718
380,000
(146,393)
792,709
397,074
5,240,193
$ 5,637,267
NET ASSETS - ENDING
See notes to financial statements
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
to
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Basis of Accounting
The Fishers Island Ferry District uses the accrual basis of accounting. Under this basis of accoanting, 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.
Change in Financial Presentation
As of December 31, 2003 the District has elected to adopt GASB No. 34. Under GASB No. 34 the District has
changed it's reporting from the modified accrual basis of accounting to the accrual basis of accounting. In prior
years the modifications to the accrual method were:
· Revenues were 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. Material revenues that are
accrued include state and federal aid, sales tax and certain user charges.
· Expenditures were recorded when incurred except principal and interest on indebtedness were recognized
when due, and compensated absences, such as vacations and sick leave, which vests or accumulates, were
charged as an expenditure when paid.
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 revenue and expenses during the reporting period. Actual results could differ from those
estimates.
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recorded at cost and consist o£the following classes o£assets:
Land $ 41,717
Docks and dolphins 2,117,745
904,357
Vessel - Munnatauket 1,499,850
Vessel - Race Point 3,907,674
Buildings and improvements 2,360,357
Terminal expansion 52,720
Office equipment 53~773
Terminal equipment
TOTAL PROPERTY, PLANT AND EQUIPMENT
$ 10,938,193
BONDSPAYABLE
Race Point Debt Service
Serial Bonds maturing and payable annually with interest at 9.1% per annum.
Net book value of the Race Point is $693,211.
Pension System Serial Bonds
Serial Bonds maturing and payable annually with interest at 8% per annum.
$ 60,000
5,141
$ 65,141
The following arethe maturities ofbonds payable foreach ofthe next two years.
2004
2005
$ 35,141
30,000
$ 65,141
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
BONDS PAYABLE (Continued)
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.
To Be Redeemed in 2004
Interest Budget
Description Amount Rate Appropriations Bonds
New London Terminal Project $ 550,000 2.47% $ 25,000 $ 3,000,000
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 of the State of New York (Comptroller) serves as sole
trustee and administrative head of the Systems. The Comptroller shall adopt and may amend roles 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. Alfi'ed 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% of their salary. Under the authority of the 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.
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
RETIREMENT SYSTEM (Continued)
The Town's contributions made to the Systems were equal to 100% of the contributions required for each year.
The districts portion of the contribution was $37,122 in 2003.
Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 of the State oflqew York.
This legislation requires participating employers to make payments on a current basis, while amortizing existing
unpaid mounts 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.
5. 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 $140,710 was paid on behalf of 8 retirees and 14 active employees and is recorded as expenditures in the
Special Revenue Fund. The cost of previding benefits for retirees is not separable from the cost of providing
benefits for active employees.
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DOHERTY, BEALS & BANKS, P.C.
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, 2003
[~~.H ERTY
LS &
NKS. P.C.
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, 2003
CONTENTS
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 ...................................................................................................................................................... l
Schedule of Expenditures of Federal Awards ................................................................................................................ 3
Notes to the Schedule of Expenditures
of Federal 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 Auditing Standards .................................................................................................... 7
DOHERTY, BEALS 8{ BANKS, P.C.
DOHERTY, BEALS & BANKS, P.C.
CERTIFIED PUnLIC ACCOUNTANTS
Board of Directors
Fishers Island Ferry District,
A component unit of the Town of Southold
New London, CT 06320
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 Southold with the
types of compliance requirements described in the U.S. O~ce 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 31,2003.
The major federal programs are identified in the summary of auditors' results section of the accompanying schedule of
findings and questioned easts. 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, A component unit of the Town
of Southold's management. Our responsibilit~ is to express an opinion on the Fishers Island Ferry District, A component
unit of the Town of Southold'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, A component unit of the Town of Southold'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, A component unit of the Town of Southold's compliance with those requirements.
In our opinion, the Fishers Island Ferry District, A component unit of the Town of Southold 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, 2003.
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Internal Control Over Compliance
The management of the Fishers Island Ferry District, A component unit of the Town of Southold is responsible for
establishing and maintaining effective internal control over compliance with the requirements of laws, regulations,
contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Fishers
Island Ferry District, A component unit of the Town of Southold'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-I 33.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control
that might be material weaknesses. A material weakness is a 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 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, A component unit of the Town of
Southold as of and for the year ended December 31, 2003, and have issued our report thereon dated April 29, 2004. Our
audit was performed for the purpose of forming 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 Directors, and cognizant audit
agencies and is not intended to be and should not be used by anyone other than these specified parties.
DOHERTY(~BEALS & BANKS, P.C.
April 29, 2004
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT,
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2003
Federal Grantor
Pass-through Grantor
Program Title
Federal Pass-Through
CFDA Grantor's
Number Number
Federal
Expenditures
U.S. Department of Transportation
Direct:
Airport Improvement Program
20.106 N/A $ 120,622
Pass Through Connnecticut Department
of Transportation
Ferry Boat Discretionary Program
20.500 94-2t2 425335
' TOTAL EXPENDITURES OF FEDERAL AWARDS
545.957
See notes to schedule.
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DOHERTY, BEALS 8{ BANKS, P.C.
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, 2003
BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the 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 of OMB Circular
A-133, ~4udits 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.
FISHERS ISLAND FERRY DISTRICT,
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2003
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?
Reportable condition(s) identified that are
not considered to be material weaknesses?
Noncompliance material to financial statements
noted?
__ yes ~ none reported
__ yes ~X none reported
__yes ~Xno
Federal A wards
Internal control over major programs:
Material weakness(es) identified?
Reportable condition(s) identified that are
not considered to be material weakness(es)?
yes ~X none reported
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 510(a)
of Circular A- 1332
__ yes ~X no
Identification of major programs:
CFDA Number(s)
93.600
Name of Federal Program or Cluster
Early Head Start
Dollar threshold used to distinguish between
type A and type B programs:
Auditee qualified as low-risk auditee?
$300,000.00
~_Xyes _no
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DOHERTY. BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT,
A COMPONENT UNIT OF THE TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2003
SECTION II - Financial Statement Findings
No findings or questioned costs are reported.
SECTION III - Federal Award Findings and Questioned Costs
No findings or questioned costs are reported.
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DOHERTY, BEALS & BANKS, P.C.
DOHERTY, BEALS & BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
187 WILLIAMS STREET
pOST OFF~CE BOX 59
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, A component unit of the Town of Southold
New London, CT 06320
We have audited the financial statements of the Fishers Island Ferry District, A component unit of the Town of Southold
as of and for the year ended December 31,2003, and have issued our report thereon dated April 29, 2004. 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 &the
United States.
Compliance
As part of obtaining reasonable assurance about whether the Fishers Island Ferry District, A component unit of the Town
of Southold's financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grants, 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
in planning and performing our audit, we considered the Fishers Island Ferry District, A component unit of the Town of
Southold'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 assurance 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 over financial reporting that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level
the risk that misstatements 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 directors, management, and cognizant audit agencies.
However, this report is a matter of public record and its distribution is not limited.
April 29, 2004
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