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HomeMy WebLinkAbout2008RCCENED ORIENT FIRE I)ISTRICT FINANCIAL STATEMENTS December 31~ 2008 ORIENT FIRE DISTRICT TABLE OF CONTENTS I)ecember 3L 2008 Pa~e INDEPENDENT AUDITOR'S REPORT ........................................................................................... GENERAL I:'URI'OSE FINANCIAl. STATEMENTS Balance Sheet - Govermnental Funds (Regulatory Basis) ............................................................. 2 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds (Regulatory Basis) ................................................ 3-4 Slalcmcnt of Fiduciary Net Asscts Agency Funds (Regulatory Basis) ............................... 5 Budgetary Comparison Schedule General Fund (Regulatory Basis) ................................. 6 Notes to Financial Stalemcnt ..................................................................................................... 7-13 Report on Internal Control over Financial Repo~ling and on Compliance and other Matters Based on an Audit o[ Financial Statements [>crkmned in Accordance with Govermz~ez~t Atlditi~g Slamhtr& . .......... I 4-15 ! or e R. Rehn i IIGR ] G_ _e Certified Public Accountant i~ ?ii~ _ul~S3it;~[ 310-12 Bay Walk I : ?~x'~:;~; 17: 31-32740 (63 l~;es~-0B;6a8ch* I INDEPENI)ENT AUDITOR'S REPORT Board of Fire Commissioners Orient Fire District 23300 Main Road Orient, NY 11957 I have audited tile accompanying financial statements of thc Orient Fire District as of and tile year ended December 31, 2008. as listed in the table of contents. These financial statements are the responsibility of Orient Fire District managenrent. My responsibility is to express au opinion on these financial statements based on my audit. I conducted 1ny audit in accordance with auditing standards generally accepted in the United States of America and thc standards applicable to financial audits contaiucd in Governmen! .4udtting Standard& issued by the Comptroller General of thc United States. Those standards require that I plan and perfnrm the audit to obtain rcasonable assurance about whether the financial statements are frcc of material misstatement. An audit includes examining, on a test basis, evidence supporfing the amounts and disclosures in thc financial statements. All audit also includes asscssing the accounting principles used and significant cstimates made by mauageurent, as well as evaluating the overall financial statement presentation. I bclicve that my audit provides a reasonable basis for my opinion. As described more fully in Note I, thc Orient Fire District prepares its financial statemeuts using accounting practices prescribed or permitted by the New York State Office of the State Comptroller. which is a comprehensive basis of acconnting other than accounting principles generally accepted itl the Uuited States of America, although not reasonably determinable, are presumed to be materiah In my opinion, the financial statements and budgetary comparison schedule referred to above present Fairly, in all material respects, the assets, liabilities and fund balances of thc Orient Fire District as of December 3 I. 2008, and the revenues it received and expenditures il made for thc year then ended in conformity with the basis ofaccouuting described in Note I. Ill accordance with (Jovernmenl A ~tdilin,g Slanda/~d*', I have also issued my report dated June 29, 2009, on my consideration of the Orient Fire District's internal control over financial reporting and oil my test of its compliance with certain provisions of laws, regulations, contracts and grant agreemeuts and other matters. The purpose of that report is to describe the scope of my tesfing 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 repmting or on compliance. That report is an integral part of an audit performed in accordance with (Jovernlnent Audilin~g ,~landrlrds' and should be considered in assessing the results of my audit. This report is intended solely for the infbrmation and use of tile Board of Fire Commissioners, mauagement. others within tile Organization and the New York State Of/ice of the State Comptroller and is not intended to be and should not be used by anyone olher than these specified parties. Certified Public Accountant June 29, 2009 Setauket, N.Y. I ORIENT FIRE I)ISTRICT~ NEW YORK BALANCE SHEET - GOVERNMENTAL FUNDS ( REGULATORY BASIS) Assets: Cash Iotal Assets Fund balances: Reserve f'or capital prqiects Unreserved undesignated Total fund balances Total liability andl'und balances December 31, 2008 Capital Truck Improve- General Reserve ment Fund Fund Fund Total $ 1,785 $266.031 $133,067 $ 1,785 $266.031 $133,067 $ -- $266,031 $133,067 1.785 .... 1.785 266,031 133,067 $1,785 $266,031 $133,067 2 See notes to financial statements $400,883 $400,883 $399,098 1,785 400.883 $400,883 ORIENT FIRE I)ISTRICT~ NEW YORK STATEMENT OF REVENUES, EXPENDITURES AND CItANGES IN FUND BALANCES - GOVERNMENTAL FUNDS (REGULATORY BASIS) Real property taxes Interest and earnings Rental income hlsurance recoveries Retired of prior year's expenditures Total revenues For the Year Ended December 31~ 2008 Truck Capital General Reserve Improve- Fund Fund ment Fund Total Expenditures: $438.673 .... $438.673 1.920 4,264 1,372 7.556 59.650 .... 59.650 7,668 7.668 3,524 -- 3.524 511.435 4,264 1,372 517,071 Persolla[ services Equipment and capital outlay Contractual expenditures I~oca[ service award pension Social security Workers compensation and employee benefits Total cxpeaditurcs Excess (dclicicncy) of revenues over expenditures 36.870 .... 36.870 56.065 35.000 10,800 101,865 256.508 - -- 256,508 92,500 .... 92.500 1.535 .... t.535 16,389 .... 16.389 459,867 35,000 10.800 505,667 51,568 (30,736) (9,428) 11,404 3 ~ee IlO|eS to tinancial statements ORIENT FIRE DISTRICT~ NEW YORK STATEMENT OF REVENUES~ EXPENI)ITURES AND CHANGES 1N FUND BALANCES - GOVERNMENTAL FUNDS (REGULATORY BASIS1 Fur the Year Ended December 31~ 2008 Capital General Truck Improvement Fund Reserve Fuud Fuud Other financing sources (uses): Tranfers in Transfer out Total other financing resources (uses) Net changes in ruud balances Fund balance, beginning of year Fund balance, end of year Total 4 See notes to financial statements -- 25,000 25,000 50,000 50,000 .... (50,000) (50,000) 25,000 25,000 -- 1,568 (5,736) 15.572 11,404 217 271,767 117.495 389~479 $1,785 $266,031 $133,067 $400,883 ORIENT FIRE DISTRICT~ NEW YORK STATEMENT OF FIDUCIARY NET ASSETS - AGENCY FUND (REGULATORY BASIS) December 31, 2008 Agency Fund Assets.' Service award program assets $426,533 $426,533 $426,533 $426,533 Total assets Liabilities: Service award prograln liability Total liabilities 5 See notes to financial stalements ORIENT FIRE DISTRICT, NEW YORK BUDGETARY COMPARISON SCHEI)ULE GENERAL FUND (REGULATORY BASIS) For thc Year Ended December 3L 2008 Budget Actual Variance With Budget Favorable Revenues ?,cai property taxes Interest and earnings Rcntal income Insnrance recover]cs Refund of prior year's expenditures Amounts available for appropriatiou $438,668 $438,673 $5 2,000 1,920 (80) 43~272 59,650 16,378 -- 7,668 7,668 -- 3,524 3,524 483.940 511,435 27,495 Expenditures [)crsolla] SCl'ViCeS Equipment and capital outlay Contractual expenditures I,ocal service award pension Social security Workers compensation and employee benefits 35,140 36,870 11.730) 48.000 56,065 18,065) 261,500 256,508 4,992 70,000 92,500 (22,500) 4,000 1,535 2,465 15,300 16,389 11,089) Total expenditures 433,940 459,867 (25,927) Other financing sources (uses): l'ransfcrs out Iota] other financing sources (uscs) (50,000) (50,000) 0 150~000) (50,000) 0 Iixccss ofrcvcnues over expenditures $1.568 6 Scc notcs to financial statements ORIENT FIRE DISTRICT~ NEW YORK NOTES TO FINANCIAL STATEMENTS December 31,2008 Note 1 - Summary of Significant Accounting Policies: The financial statements of tbc Orient Fire District (tbe "District"), as of and kit the year ended December 3 I. 2008 have been prepared in conformity with modified accrual regulatory basis of accounting as prescribe by the State Comptroller's Office, which is a co~nprehcnsive basis of accoanting otbcr than United States generally accepted accotmting principles. Financial repurting entity: Tbe Districl is a governmental entity tbat provides fire )rotcction to thc local community. Tbc District receives most of its lhnding fi-om property taxes. ']'lie District is governed by laws of Ibe State of New York. The Board of Fire Commissioners is tbe legislative body responsible [bt the overall operation of the District. All activities and functions performed lkgr the District arc its direct responsibility. Tim Treasurer serves as chief fiscal officer of the District. Basis of presentation: The I'und financial statements provide information about the District's fimds, including fiduciary funds. The accounts of the District are organized on tbe basis of funds, each of whicb is considered a separate accounting entity. The operations of each fired are segregated for the purpose of carrying on specific activities or attaining certain ol~iectivcs in accordance witb special regulations, restrictions or limitations. Thc following fund types are used: Governmental: General Fund The General Fund is thc principal operating fund of the District and is used to acconnt for all financial resources except those required to bc accounted for in another fitnd. Debt service is also acconnted for ii] the Gencra] I:und. Capital impruvement Fund The Capital hnprovcmcnt Fnnd is used to account fbr and repotS. I'inancial resources to be used Ibr thc acquisition, constraction, or renovation of major capital fhcilities. Truck Reserve Fund I'he Truck Reserve Fnnd is used to account for and report financial resources to bc used for the acquisition of all large equipmcnt. Fiduciary Fund Fiduciary funds are nsed to accounl lbr assets bcld by tim District in a trustee or custodial capacity. The District utilizes thc folk)wing fuad: ORIENT FIRE DISTRICT~ NEW YORK NOTES TO FINANCIAL STATEMENTS December SIT 2008 Agency Fund The Agency Fund is used to account tkn- and repot1 assets held by the District in the capacity of trustee, custodian or agent [hr iudividuals. Agency funds arc custodial in uaturc and do not involve mcasnrement of results of operations. Basis of accounting: The accompanying governmental fund financial statements are reported on the ~nodificd accrual regulatory basis of accounting using the current financial resources measurement focus. Revcuncs are recognized when measurable and available. '~Availablc" means collectible within the current period or within 60 days after year-end. Expenditnres are generally recognized under thc modified accrnal basis of accounting when thc related liability is incurred. The exception to this general rule is that principal and interest on general obligation long-term debt, il:any, is recognized when dne. Cash and cash equivalents: Cash and cash equivalents include demand deposits and temporary investments with original maturities of three months or less t'rom date of acquisition. Interfund transfers: The operations of the District give risc to certain transactions between f'unds, including transl'ers of expenditures and revenues to provide services and construct assets. This is either by budget, Board resolution or permissive referendnm. Fund balance - reserves and designations: I>o~ions of fired balance arc reserved or designated to eilher satislS' legal restrictions or to plan lbr future expenditnres. The lbllowing is a description of the reserves ntilized by the District: Reserve for Capital hnprovements used for thc acquisition constrnction or renovation of ma:jor capital facilities. Reserve for Truck used fin' thc acquisition of large equipment. Real property' taxes: All real property assessments are made by the Town o£ Southold, Real property tax payments are duc in two equal installments; the first half payable ou December l (lien and levy date) preceding the year tbr which thc same is levied and thc second half payable May ~0, with the first hall' payable without penalty to January 10 aud the secoud half payable without penalty to May 3 l. After May 3 I, all taxes must be paid to the Suffolk County Treasurer with a 5% penahy charge and interest at the rate of ]% per month tbr February I. ORIENT FIRE DISTRICT~ NEW YORK NOTES TO FINANCIAL STATEMENTS December 31, 2008 The Toxw~ of' Southold Receiver of Taxes collects all real estate taxes for thc District. Thc 'l'own of Southold Receiver ol"['axes distribntcs thc tax collcctions to thc District. All payments made to the District are made in the year Ibr which the tax has been levied. The Town of Soutbold P, eceiver of Taxes turns over uncollected items to the Suffolk County Treasurer who continues tile collection of these items. Responsibility lbr thc collection of unpaid taxes rests with Snffolk County. Budgetary data: Thc District prepares an operating bndgel t'or Ibe (ieneral Ftmd each year. '¥he bndget is adopled by the Board of Fire Commissioners itl tile prior year fbr tile coming year. The bndget is not sul~ject to referendtnn. All budget appropriations lapsc at the end of the year. Use of estimates: The preparation of financial state~nents iu confimnity with tile modified accrual regulatory basis ot~ accounting requires management to make estimates and assnmptions that affect certain reported amounts and disclosures. Accordiugly, actual resnlts could differ fl'o~n those estimates. Deposits with financial institutions and investments: The District's investment polices 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 special time deposit accouuts, certificates of deposit, and obligations of thc United States of America, obligalions guaranteed by agencies of the United States of America where the payment and interest are guaranteed by the United States of America, and obligations of thc State of New York. Collateral is rcqnircd fbr demand and time deposits. Custodial credit risk is the risk that iu thc event ora bank failure, thc l)istrict's deposits may not be returned to it. GASB directs that deposits be disclosed as exposed to cnstodial credit risk ii' they are not covered by depository insurance and thc deposits arc either: 2. 3. 4. Insured by Fl)lC insurance Collateralized by securities held by the pledging financial institution's trnst department or agent bnt ]Jot in tile District's name. Collatcralizcd by securities held by the pledging tqnancial institution but nol in the District's name. [Jncollateralized. 9 ORIENT FIRE DISTR1CT~ NEW YORK NOTES TO FINANCIAl, STATEMENT DECEMBER 31~ 2008 The District's deposits held by tile banks are categorized, based on thc above criteria, as tbllows: Category Amnunt I $250,000 3 333,693 I'otal $583,693 Length of Service Awards Program - LOSAP The Orient Fire District financial statements are for thc year ended l)ecember 31, 2008, The information contained m this uole is based on intbrmation fi)r the Lenglh of Service Awards Program for thc plan year ending on December 31, 2008. The Oricut Fire District established a defined benefit LOSAP for tine active w)lLmteer firefighlers of the Orient Fire Department. 'lhe program took eft'em on January 1, 1995. The program was established pursnant to Article I1-A of the General Municipal l,ax~. The program provides muuicipally-flmded pension-like benefits to facilitate the recruitment and retention of aclive volunteer firefighters. The Orient Fire District is the sponsor of thc program. Program Description Participation~ vestinR and service credit Active volunteer firelighters who havc reached the age of 18 and who have completed I year ot' firefighliug service are eligible to participate ia the program. Participants acquire a nonforfcitablc right to a service award after being credited with 5 years of firefighting service or upon attaining tile progrmn's entitlemcut age, Tile program's entitlement age is age 65. Iu general, all aclivc voluotccr firefighter is credited with a year of firefighting service for each calendar year after the establishment of the program in which he or she accumulates filly points. Points are granted for the perlbrmance of certain activities in accordance with a system established by thc sponsor on the basis ora statutory list of activities and point values. A pmlicipaut may also receive credit Jbr 5 years of firefigl~ting scrvicc rendered prior to the establishment of the program. 10 ORIENT FIRE DISTRICT~ NEW YORK NOTES TO FINANCIAL STATEMENT DECEMBER 3L 2008 Benefits A participant's beoefit under the program is a [itc annuity witll ten years certain cqual to $20.00 multiplied by the person's total nunlber of years of fircfigbting service. The number of years of firefigbting service used to compute thc benefit cannot exceed twenty. Benefits arc not payable until entitlelnent age. On and after that date, except itl the case of disability or death, benefits are payable when a participant reaches entitlement age. The program provides statatorily mandated death and disability benefits. Fiduciary' Investment and Control Scrvicc credit is determined by the governing board of the sponsor, based on infornlation certified to tile goveraing board by each llre co~npany }laving members wbo pmlicipate ill tile program. Each fire company must maintain all required records on forms prescribed by the governing board. The governing board of the sponsor has retaiued and designated Wachovia Securities to assist in the administration of tbc program. The designated program administrator's fimctions include record keeping and payment calculation and verification. Disbursements of program assets lbr thc payment of' benefits or administrative expenses must be approved by tile Orient Fire District Board of Commissioners. Program assets arc required to be held ill trust by LOSAP legislation. Ibr Ibe exclusive purpose of providing benefits to participants and their beneficiaries or for thc purpose of defi'aying tile reasonable expeuses of the operation and administration of the program. The trust agreement is dated January 1, 1995, and the trustee is Orient Fire District Commissioners. Authority to invest program assets is vested in Orient Fire District Commisskmers. Program assets are invested in accordance with a statutory "prudent person" rule. The sponsor is required to retain all actuary to detertnine the amonnt of tile sponsor's contributions to tile plan. The actuary retained by thc sponsor for this purpose is Barlow & Young. Portions of the following intbrmation arc derived from a report prepared by thc actuary. Il ORIENT FIRE I)ISTRICT~ NEW YORK NOTES TO FINANCIAL STATEMENT DECEMBER 31 ~ 2008 Program Financial Condition Assets and Liabilities Actuarial Present Value of Benefits at December 3 I. 2008 Less: Assets Available for Benefits % of'total Cash & cash equivalents Fixed income fimds Pooled equity fund l,ess: l,iabilities Total Net Assets Available for Benefits Total Unfm~dcd [?,cnefits Less: Unfunded Liability lbr Prior Service Unflmded Normal benefits 8.41% $ 35,879 60.80% 259.309 30.79% 131,345 100% 426,533 Prior Service Costs Prior service costs are being amortized over 10 years at a discount rate of 7%. 12 $803,203 426.533 376,670 156,696 $ 2~974 ORIENT FIRE DISTR1CT~ NEW YORK NOTES TO FINANCIAL STATEMENT DECEMBER 3L 2008 Receipts and Disbursements Plan Net Assets, beginning of year $ 515,621 Changes during tile year: + Plan contributions $70,000' + Investment income earned 157 +/- Changes in fair market value of investments ( 1 [ 9,955) - Plau Benefit Withdrawals (33,027) - Administrative and Other Fees/Charges (6,263) Plan Net Assets, end of year (89,088) $ 426,533 Contributions Amount of spousor's contribution l'ccommended by actaary: Amount of sponsor's aclual contribution: $76,120 $92,500 Administration Fees Fees paid to trustee: $ -- Fees paid for investment management (it' separate Ii'om tee paid to trustee): Fees paid to actuary and program administrator 6,263 Otber administration tees *Excludes $22,500 contribution made 12/31/2008 Funding Mcthodnlogy and Actuarial Assumptions Normal Costs Tile actuarial valuation methodology used by the actuary to determine tine sponsor's contribution is thc entry age normal-fi'ozen initial liability cost metbod. The assnmptions used by the actuary to determine thc sponsor's cootribution and the actuarial present value of benefits are: AssulBcd rate of reltlrn on investlllent 7% Mortality Tables used for Withdrawal Disability Retirement Dcatb (Actives) Death (In-actives) 1971 Group Annuity Mortality Table 1971 Group Annuity Mortality Table 1971 Group Annuity Mollality Table 1971 Group Anuuity Mo~lality Table 1971 Group Annuity Mortality Table 13 I ! ! Certified Public Accountant 310-12 Bay Walk Ocean Beach · New York 11770 (631) 583-0268 · Fax(631) 583-0229 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 A UDITING STANDARDS Board of Fire Commissioners Orient Fire District 23300 Main Road Oricnt, NY 11957 I have audited thc financial statemcnts of Orient Firc District for the ycar cndcd December 31, 2008, and have issued my report thcrcon dated June 29, 2009. I conducted my audit in accordancc with auditing standards generally accepted in the United States of America and the standards applicable to financial audits containcd in Governmer~t Auditing ,~l~tndardx, issued by the Comptroller General of the United States. lntcrnal Control over Financial Reporting In planning and pcrforming my audit, I considered thc District's internal control over financial rcporting as a basis tbr designing my auditing procedures for the purpose of exprcssing my opinions on the financial statements, but not for thc purpose of' expressing an opinion on the effectiveness of the District's intcrnal control over financial rcporting. Accordingly, I do not express an opinion on the effectiveness of the districts internal control ovcr financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employccs, in the normal course of performing their assigned functions. to prevent or dctcct misstatelnents on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconscquential will not be prcvcnted or detcctcd by the District's internal control. 14 A material weakness is a signilicant dcficiency, or combination of signilicant deficicncies, that results in more than a remote likelihood that a material misstatement of a financial statemcnt will not be prevented or detectcd by the District's internal control. My consideration of internal control over financial reporting was for the limited purpose described in thc first paragraph of this section and would not necessarily identi~' all deficicncies in internal control that might be significant deficiencies or material weaknesses. I did not identify any dcficiencies in internal control over financial reporting that I consider to bc material weakness, as defined above. Compliance and Other Matters As part ol' obtaining reasonable assurance about whether Thc District's financial statements arc free o1' material misstatcment, I pcrlbrmed tests of its compliance v, ith certain provisions of laws, regulations, contracts, and grant agreements, noncompliancc with which could have a dircct and material effect on the determination of financial statement amounts. Iloxvcver, providing an opinion on compliance with those provisions was not an ol/jective of this audit, and accordingly, l do not cxpress such an opinion. The results of my tests disclosed no instance of noncompliance or other matters that are required to be reportcd under Governmen! ~quditing Slandard~. This report is intended solely Ibr thc inlbrmation and use of Board o1' Fire Comlnissioners of Orient Fire District and is not intended to be and should not be uscd by anyone other than these specific parties. June 29, 2009 Sctauket, New York 15