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