The URL can be used to link to this page

Home My WebLink About2008 FIFDSEP ] 6 2009 TOWN OF $OUTHOLI~ ACCOUNTING & FINANCE DEPT. FISHERS ISLAND FERRY DISTRICT A COMPONENT UNIT OF THE TOWN OF SOUTHOLD FINANCIAL STATEMENTS DECEMBER 31, 2008 AN ~ RTY p.a. I I I I I I I I I I I I I I I I I I I FISHERS ISLAND FERRY DISTRICT A COMPONENT UNIT OF THE TOWN OF SOUTHOLD FINANCIAL STATEMENTS DECEMBER 31, 2008 CONTENTS Independent Audttors 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. I I I I I I I I I I I I I I I I I I I CARL A. BANKS~ CPA STACEY L. GUALTIERI, CPA KATHLEEN A. STEAMER, CPA DAVID J. MICELI, CPA DOHERTY, BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 187 WILLIAMS STREET POST OFFICE BOX 59 NEW LONDON, CONNECTICUT 66320 (860) 443-2033 FAX (860) 444-7086 WWW.DBBCPA.COM 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, 2008, which collectively comprise the District's basic fmancial statements as listed in the table of contents. These fmancial 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the ovemll financial statement presentation. We believe that om 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, 2008, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. DOHERTY, BEALS & BANKS, P.C. August 27, 2009 -1- I I I I I I I I I I I I I I I I I I I FISHERS ISLAND FERRY DISTRICT COMPONENT UNIT OF TOWN OF SOUTHOLD STATEMENT OF NET ASSETS AS OF DECEMBER 31, 2008 ASSETS Cash and investments Other receivables Due from grants Due from other funds Prepaid expenses Land Buildings Machinery and equipmeht Less: accumulated depreciation 375,718 72,532 16,822 139,142 67,643 41,717 19,485,811 2,860,543 (6,683,194) TOTAL ASSETS $ 16,376,734 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable Other liabilities Due to other funds Judgements and claims payable Wages payable Bond anticipation notes General obligations bonds payable TOTAL LIABILITIES iNET ASSETS Investments in fixed assets Unrestricted (deficit) TOTAL NET ASSETS $ 144,910 163,642 64,670 93,102 165,077 1,200,000 2,400,000 4,231,401 15,704,877 (3,559,544) 12,145,333 $ 16,376,734 TOTAL LIABILITIESAND NET ASSETS -2- DOHERTY, BEALS & BANKS, P.C. I I I I I I I I I I I I I I I I I I I 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, 2008 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 Adnrfinistration Insurance claims TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE (EXPENSES) Interest income Capital grants Property taxes Interest expense TOTAL OPERATING REVENUE (EXPENSES) CHANGE IN NET ASSETS NET ASSETS - BEGINNING NET ASSETS - ENDING See notes to financial statements. -3- DOHERTY, BEALS & BANKS, P.C. $ 2,451,948 14,112 20,970 10,771 57,383 2,555,184 1,177,259 347,695 176,369 661,395 870,346 158,435 12,102 7,200 77,050 47,096 83,133 146,251 13,520 3,336 3,781,187 (1,226,003) 9,545 324,086 590,000 (5,713) 917,918 (308,085) 12,453,418 $ 12,145,333 I I FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 I I I I I I I I I I I I I I I I I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Purpose The Fishers Island Ferry District operates through the Town of Southold as an organization exempt from income tax. It is a component unit of the Town of Southold. The Fishers Island Ferry District's function is to provide residents of Fishers Island with transportation to and from Fishers Island, New York, and New London, Connecticut. Method of Accounting The Fishers Island Ferry District uses the accrual basis of accounting. Under this basis ofaccounting, 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 Accounfmg 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 f'mancinl 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 cuntingent assets and liabilities as of the date of the £mancial statements, and revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Organization considers all unrestricted highly liquid investments with a maturity of three months or less to be cash equivalents. Property and Equipment Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. Depreciation of the Organization's assets is calculated using the straight-line method over the estimated useful lives of the assets ranging from five to thirty 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 $250,000. At December 31, 2008, the Organization's unmsnsed cash balances total $16,086. PROPERTY AND EQUIPMENT Property, plant and equipment are recorded at cost and consist of the following classes of assets: Land Buildings Machinery and Equipment Total Property and Equipment -4- DOHERTY, BEALS & BANKS, P.C. $ 41,717 19,485,811 2,860,543 $ 22,388,071 I I FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 I I I I I I I I I I I I I I I I I 4. BONDSPAYABLE Serial Bonds dated March 8, 2005. Denominations maturing on September st 1 each year through 2021, interest rate is 3.75%. The outstanding balance on the bonds at year-end is $2,400,000. The maturities of the bonds for the next five years is as follows: 2009 $ 178,125 2010 178,125 2011 178,125 2012 178,125 2013 178,125 Bond Anticipation Note Bond anticipation notes (BAN's) are generally accounted for in the capital projects funds. The notes or renewal thereof may not extend more than two years beyond the original date of issue unless a portion is redeemed within two years and within each 12-month period thereafter. State law requires that BAN's issued for capital purposes 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 fmancing, provided that stipulated annual reductions of principal are made. Description New London Terminal Project Interest Budget Amount Rate Appropriations Bonds $ 1,200,000 2.75% $ $ 1,200,000 TOTAL $ 1,200,000 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 Policeman's and Firemen's Retirement System and the Public Employee's Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefit as well as death and disability benefits. The New York State Retirement and Social Security Law (NySRSSL) govern obligations of employers to contribute and benefits to employees. As set forth in the NYSRSSL, the Comptroller of the State of New York serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration and transactions of the business of the Systems and for the custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementa[y information. That report may be obtained by writing the New York State and Local Retirement System, Gov. Alfred E. Smith State Office Building, Albany, NY 12244. -5- DOHERTY, BEALS & BANKS, P.C. I I FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 I I I I I I I I I I I I I I I I I RETIREMENT SYSTEM(continued) 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. The Town's contributions made to the Systems were equal to 100% of the contributions required for each year. ~ae districts portion of the contribution was $ 89,756 in 2008. Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts relating to the Systems' fiscal years ending March 31, 1988, and 1989, (which otherwise were to have been paid on June 30, 1989, and 1990, respectively) over a 17-year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The Town elected to make the full payment on December 15, 1993, by issuing serial bonds to replace this debt. 6o 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 Distxict 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 aa 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 $162,537 was paid on behalf of 2 retirees and 19 active employees and is recorded as expenditures in the Special Revenue Fund. The cost of providing benefits for retirees is not separable from the cost of providing benefits for active employees. -6- DOHERTY, BEALS & BANKS, P.C.