HomeMy WebLinkAbout2004 FIFDFISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2004
COpy-
FISHERS ISLAND FERRY DISTRICT
FINANCIAL STATEMENTS
DECEMBER 31, 2004
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
DOHERTY, BEALS & BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
~ 87 WILLIAMS STREET
Board of Commissioners
Fishers Island Ferry District
Fishers Island, NY 06390
COpy,
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, 2004, 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 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 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, 2004, 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 May 25, 2005, 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.
ALS & BANKS, P.C.
May 25, 2005
-l-
FISHERS ISLAND FERRY DISTRICT
COMPONENT UNIT TOWN OF SOUTHOLD
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2004
ASSETS
Cash and investments
Other receivables
Due from grants
Prepaid expenses
Land
Buildings
Machinery and equipment
Less accumulated depreciation
1,195,872
82,501
83,092
42,637
41,717
15,472,775
2,694,103
(4,662,578)
TOTAL ASSETS
$ 14,950,119
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
Other liab fiities
Wages payable
Bond anticipation notes
General obligations bonds payable
TOTAL LIABILITIES
NET ASSETS
Investments in fixed assets
Unrestric~d (deficit)
TOTAL NET ASSETS
293,889
315,400
290,720
4,725,000
32,570
5,657,579
13,546,018
(4,253,478)
9,292,540
$ 14,950,119
TOTAL LIABILITIES AND NET ASSETS
See notes to financial statements.
-2-
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, 2004
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
Property taxes
Capital project administration
TOTAL OPERATING REVENUE(EXPENSE)
CHANGE IN NET ASSETS
NET ASSETS-BEGINNING
PRIOR PERIOD ADJUSTMENT (NOTE 7)
NET ASSETS - ENDING
See notes to financial statement&
-3-
$ 1,695,516
13,324
17,964
13,047
46,915
1,786,765
1,071,803
300,076
45,190
277,914
323,848
19,777
19,534
5,550
69,525
26,453
51,352
29,304
15,734
11,988
2,268,048
(481,283)
12,556
2,780,889
390,000
(9,271)
3,174,174
2,692,891
5,637,267
962,382
$ 9,292,540
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
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 lsland, New York, and New London,
Connecticut.
Basis of Accounting
The Fishers Island Ferry District uses the accrual basis of accounting. Under this basis of accounting, revenues
are recognized when measurable and earned. Expenditures are recorded when measurable and incurred.
Financial Statement Presentation
Financial statement presentation follows the recommendation of Statement No. 34 of the Government Accounting
Standards Board, Basic Financial Statements- and Management's Discussion and Analysis- for State and Local
Governments. Under GASB No. 34, the District is required to report information regarding its financial position
and activities using the economic resources measurement focus and the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial
statements, and 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 thir~ years.
CONCENTRATION OF CREDIT RISK
The Organization maintains cash balances at several financial institutions. Accounts at each institution are
insured by the Federal Deposit Insurance Corporation up to $100,000. At December 31, 2004, the Organization's
uninsured cash balances total $1,037,838.
-4-
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
3. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recorded at cost and consist of the following classes of assets:
Land
Buildings
Machiner and equipment
TOTAL PROPERTY, PLANT AND EQUIPMENT
41,717
15,472,775
2,694,103
$ 18,208,595
BONDS PAYABLE
Race Point Debt Service
Serial Bonds maturing and payable annually with interest at 9.1% per annum.
$ 30,000
Pension System Serial Bonds
Serial Bonds maturing and payable annually with interest at 8% per annum.
2,570
$ 32,570
$ 32,570
The followingarethe m~uritiesofbondspayableforeach ofthe nextyear.
2005
-5-
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
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
a~er 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.
Interest Budget
Description Amount Rate Appropriations Bonds
New London Terminal Project $ 550,000 1.17% $ $ 1,000,000
1.40% 2,975,000
2.00% 25,000 750,000
Total $ 4,725,000
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 &their
funds. The Systems issue a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing the New York State and Local Retirement
System, Gov. Alfred E. Smith State Office Building, Albany, NY 12244.
Funding Policy
The Systems are noncontributory except for employees who joined the New York State and Local Employees'
Retirement System after July 27, 1976, who contribute 3% of their salary. Under the authority of the NYSRSSL,
the Comptroller shall certi~ 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.
-6-
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND FERRY DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
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 $61,448 in 2004.
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 other, vise 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.
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 $166,333 was paid on behalf of 8 retirees and 14 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.
7. PRIOR PERIOD ADJUSTMENT
During the preliminary phase of the New London Terminal Project start-up costs were expensed due to the
viability and timeframe of the project. The project is nearing completion and the start-up costs initially expensed
have been restated and recorded as a fixed asset on the Statement of Net Assets. This adjustment has increased
buildings by $962,382.
8. SUBSEQUENTEVENTS
The operations manager of the Ferry District has recently plead guilty to criminal charges of allowing the
dumping of raw sewage from onboard the toilets of the two ferry's owned by the Ferry District into the
Thames River and Long Island Sound from 2000 to 2004. Although no additional parties have been named, as
of the issuance of these financial reports the Coast Guard and the U.S. attorney for Connecticut has not
concluded their ongoing investigation into this matter.
-7-
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, 2004
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, 2004
CONTENTS
Report on Compliance with Requirements Applicable
to each Major Program, on Internal Control
over Compliance in Accordance with OMB Circulal
A- 133, and on the Schedule of Expenditures
of Federal Awards ....................................................................................................................................................... 1
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 ....................................................................................................
DOHERTY, BEALS & BANKS, P.C.
CARL A, BANKS. CPA
STACEY L. GUALTIERI, CPA
KATHLEEN A. STEAMER, CPA
DAVfD J. MICELI, CPA
DOHERTY, BEALS & BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
187 WILLIAMS STREET
Board of Directors
Fishers Island Ferry District,
A component unit of the Town of Southold
New London, CT 06320
COPY
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 L(S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its maj or federal programs for the year ended December 31,2004.
The major federal programs are identified in the summary of anditors' results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs is the responsibility of the Fishers Island Ferry Dislrict, A component unit of the Town
of Southold' s management. Our responsibility is to express an opinion on the Fishers lsland 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 Govermnents, 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 detemfination 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, 2004.
-1-
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-133.
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 Iow level the risk that noncompliance with applicable
requirements of laws, regulations, contracts and grants that would be material ih 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 31,2004, and have issued our report thereon dated May 25, 2005. 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 ihformation has been subjected to
the auditing procedures applied in the audit of the basic financial statements and, th out' 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.
ALS & BANKS.. PA~ ' '
May 25, 2005
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, 2004
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 $ 49,674
Pass Through Connnecticut Department
of Transportation
Ferry Boat Discretionary Program
20.500 94-212 2~73L215
TOTAL EXPENDITURES OF FEDERAL AWARDS
$ 2.780.88~9
See notes to schedule.
DOHERTY, BEALS & 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, 2004
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, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
-4-
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, 2004
SECTION 1 - 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?
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)?
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-1337
Identification of major programs:
CFDA Number(s)
20.5
Dollar threshold used to distinguish between
type A and type B progrmns:
Auditee qualified as Iow-risk aaditee?
-5-
yes X none reported
yes X none reported
yes _X_ no
yes ~X nonereported
yes X none reported
_ 5,es ~X_ no
Name of Federal Program or Cluster
FelTy Boat Discretionar5 Program
$3~00,000.00
_X_ yes _ no
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, 2004
SECTION 1I - 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.
-6-
DOHERTY, BEALS & BANKS, P.C.
CARL A. BANKS, CPA
EiTACEY L, GUALTIERI, CPA
KATH[.EEN A, STEAMER, CPA
DAVID J, MICELI, CPA
DOHERTY~ BEALS & BANKS, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING 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 31,2004, and have issued our report thereon dated May 25, 2005. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Compliance
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 repine, ed 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 low 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.
LS & BANKS, P.C.
May 25, 2005
-7-