HomeMy WebLinkAbout2009Fishers Island Fire District
ANNUAL FINANCIAL REPORT
UPDATE DOCUMENT
December 31, 2009
RECEIVED
~IAY 1 7 2010
~,eulhold Town Clerk
(~COMPANY
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT ......................................
ANNUAL FINANCIAL REPORT UPDATE DOCUMENT:
FINANCIAL SECTION ..............................................
SUPPLEMENTAL SECTION ..........................................
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT ........
PAGE
A
1
18
24
OFCOMPAIqY
COlVlPANY
A PROFESSIONAL CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS
www,$heehanc@a.eom
INDEPENDENT AUDITORS' REPORT
To the Board of Fire Commissioners
Fishers Island Fire District
Fishers Island, New York
We have audited the accompanying Annual Financial Report Update Document (Financial
Section) of Fishers Island Fire District, as of and for the year ended December 31, 2009, as listed
in the table of contents. This report is the responsibility of Fishers Island Fire District's
management. Our responsibility is to express an opinion on this report 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
Annual Financial Report Update Document is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the mounts and disclosures in the Annual
Financial Report Update Document. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
presentation. We believe that our audit provides a reasonable basis for our opinions.
As described more fully in Note 1, the Fishers Island Fire District prepares its Annual Financial
Report Update Document using accounting practices prescribed or permitted by the New York
State Office of the State Comptroller, which is a comprehensive basis of accounting other than
accounting principles generally accepted in the United States of America. The effects on the
Annual Financial Report Update Document of the variances between these regulatory accounting
practices and accounting principles generally accepted in the United States of America, although
not reasonably determinable, are presumed to be material.
In our opinion, the Annual Financial Report Update Document referred to above presents fairly,
in all material respects, the assets, liabilities and fund balances of Fishers Island Fire District, as
-of December 31, 2009 and the revenues it received and expenditures made for the year then
ended in conformity with the basis of accounting described in Note 1.
An Independent Member of the BDO Seidman Alliance
To the Board of Fire Commissioners
Fishers Island Fire District
Our audit was conducted for the purpose of forming an opinion on the Annual Financial Report
Update Document (Financial Section) taken as a whole. The Supplemental Section listed on
page two of the Annual Financial Report Update Document is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information,
except for the Fire District Questionnaire, has not been subjected to the auditing procedures
applied in the audit of the Annual Financial Report Update Document (Financial Section) and,
accordingly, we express no opinion on it.
In accordance with Government Auditing Standards, we have also issued our report dated March
25, 2010, on our consideration of the Fishers Island Fire District's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts
and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing 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 reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
March 25, 2010
C~COMPANY
All Numbers in This Report
Have Been Rounded To
The Nearest Dollar
ANNUAL FINANCIAL REPORT
UPDATE DOCUMENT
For The
FIRE DISTRICT of Fishers Island
County of Suffolk
For the Fiscal Year Ended 12/31/2009
AUTHORIZATION
ARTICLE 3, SECTION 30 of the GENERAL MUNICPAL LAW:
1. ***Every Municipal Corporation *** shall annually make a report of its
financial condition to the Comptroller. Such report shall be made by the
Chief Fiscal Officer of such Municipal Corporation ***
5. All reports shall be certified by the officer making the same and shall
be filed with the Comptroller *** It shall be the duty of the incumbent
officer at the time such reports are required to be filed with the
Comptroller to file such report
State of NEW YORK
Office of The State Comptroller
Division of Local Government and School Accountability
Albany, New York 12236
Page
FIRE DISTRICT OF Fishers Island
*** FINANCIAL SECTION ***
Financial Information for the following funds and account groups are included in the Annual Financial Report filed by
your government for the fiscal year ended 2008 and has been used by the OSC as the basis for preparing this
update document for the fiscal year ended 2009:
(A)GENERAL
(~ Resewe
~A)AGENCY
All amounts included in this update document for 2008 represent data filed by your government with
OSC as reviewed and adjusted where necessary.
*** ARRA SECTION ***
The American Recovery and Reinvestment Act (ARRA) section of your Annual Financial Report
is designed to report revenues and expenditures of federal stimulus money
for the current fiscal year ended.
*** SUPPLEMENTAL SECTION ***
The Supplemental Section includes the following sections:
1) Statement of Indebtedness
2) Schedule of Time Deposits and Investments
3) Bank Reconciliation
4) Local Government Questionnaire
5) Schedule of Employee and Retiree Benefits
6) Schedule of Energy Costs and Consumption
All numbers in this report will be rounded to the nearest dollar,
Page 2
Fishers island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Balance Sheet
Assets
Cash 487,497' A200 43*4,643
Cash In Time Deposits A201
!!
Page 3 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Balance Sheet
Fund Equi[7
Capita~ Reserve A878
Unreser~,ed Fund Balance Unappropriated 487,497 A911 434,643
Page 4 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Results of Operation
Revenues
Real Property Taxes 356,719 A1001 356,407
Interes[ And Earnings 2,130 A2401 1,277
Rental of Real Property 150 A2410
Sales of Equipment A2665 2,500
Refunds of Prior Year's Expenditures 3,526 A2701
Page 5 OSC Municipality Code 471179004000
Fishers island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Results of Operation
Expenditures
Payment of Mta Payroll Tax,contr Expend A19804 48
Fire, Pets Serv 16,966 A34101 20,092
Fire, Equip & Cap Outlay 12,493 A34102 6,947
Fire, Contr Expend 176,608 A34104 246,878
Locat Pension Fund, Empl Bnfts 84,116 A90258 85,606
Social Security, Employer Cont 1,491 A90308 1,537
Worker's Compensation, Empl Bnfts 4,996 A90408 6,217
Life Insurance, Empl Bnffs 18,462 A90458 19,213
Transfers, Other Funds 41,000 A99019 26,500
Page 6 OSC Municipality Code 471179004000
Fishers island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Changes in Fund Equity
ANALYSIS OF CHANGES IN FUND EQUITY
Fund Equity. Beginning of Year
Restated Fund Equity - Beg of Year
ADD ~ REVENUES AND OTHER SOURCES
DEDUCT ~ EXPENDITURES AND OTHER USES
Fund Equity-End of Year
481,103 A8021 487,497
481,103 A8022 487,497
362.525 360.184
356.131 413,038
487,497 A8029 434,643
Page 7 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annuat Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Budget Summary
Estimated Revenues
Est Rev- Real Property Taxes 356,400 A1049N 356,400
Est Rev - Use of Money And Property 3,300 A2499N 3,300
Estimated ~ Interfund Transfer 0 A5031N
Page 8 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(A) GENERAL
Budget Summary
Appropriations
App - Public Safety 220,900 A3999N 221,400
App - Employee Benefits 112,300 A9199N 112,300
App - Interfund Transfer 26,500 A9999N 26,000
Page 9 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(R) Reserve
Balance Sheet
Assets
Cash, Special Reserves 471,863 R230 499,712
Page 10 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(R) Resen/e
Balance Sheet
Fund EClUi~y
Capital Reserve 471,863 R878 499,712
Page 11 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(R) Reserve
Results of Operation
Revenues
Interest & Earnings .1,861 P,.240.1 '1,349
~nter~und Transfers ,41,000 R5031 26,500
· Page 12 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
Results of Operation
Page 13
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(R) Reserve
Changes in Fund Equity
ANALYSIS OF CHANGES IN FUND EQUITY
Fund Equity - Beginning of Year
Prior Period Adj - Dec To Fund Equity
Restated Fund Equity - Beg of Year
ADD - REVENUES AND OTHER SOURCES
Fund Equity - End of Year
429,003 R8021 471,863
R8015
429,003 R0022 471,863
42,861 27,849
471,863 R8029 499,712
Page 14 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(TA) AGENCY
Balance Sheet
Assets
Service Award Program Assets 854,994 TA461 908,918
~, ,
Page 15 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2009
(TA) AGENCY
Balance Sheet
Liabilities
Service Awards 854,994 TA13 908,918
Page 16 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Financial Comments
For the Fiscal Year Ending 2009
Page 17
Fishers Island FIRE DISTRICT
Statement of Indebtedness
For the Fiscal Year Ending 2009
Page 18
Fishers Island FIRE DISTRICT
Schedule of Time Deposits and Investments
For the Fiscal Year Ending 2009
CASH:
On Hand
Demand Deposits
Time Deposits
Total
COLLATERAL:
- FDIC Insurance
Collateralized with securities held in
possession of municipality or its agent
Total
EDP Code Amount
9Z2001 $0.00
9Z2011 $939,350.47
9Z2021 $0.00
$939,35O.47
9Z2014 $250,000.00
9Z2014A $723,818.81
$973,818.81
INVESTMENTS:
- Securities (450)
Book Value (cost)
Market Value at Balance Sheet Date
9Z4501
9Z4502
Collateralized with securities held in
possession of municipality or its agent
9Z4504A
- Repurchase Agreements (451)
Book Value (cost)
Market Value at Balance Sheet Date
Collateralized with securities held in
possession of municipality or its agent
9Z4511
9Z4512
9Z4514A
Page 19 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Bank Reconciliation
For the Fiscal Year Ending 2009
Include All Checking, Savings and C.D Accounts
Bank
Account
Number
*****-5498
..... -5654
· .....-5662
..... -5704
Add:
Bank Deposit
Balance In Transit
$5,965
$74,822
$424,890
$433,673
Total Adjusted Bank Balance
Betty Cash
Adjustments
Total Cash
Total Cash Balance All Funds
* Must be equal
Less:
Outstanding
Checks
$0 $4,995
$0 $0
$0 $0
$0 $0
9ZCASH *
9ZCASHB *
A~usted
Bank
Balance
$971
$74,822
$424,890
$433,673
$934,356
$.00
$.00
$934,356
$934,356
Page 20 OSC Municipality Code 471179004000
Fishers Island FIRE DISTRICT
Fire District Questionnaire
For the Fiscal Year Ending 2009
1) Has your district adopted a written procurement prolicy and is it complied with?
2) Has your district contracted to have an independent audit of its financial statements?
If not, has the Board of Fire Commissioners performed an internal audit of the
Treasurer's records and reports?
3) Does your district have a written travel policy and is it complied with?
4) Are monthly bank reconciliations performed?
5) What is your district's statutory spending limitation margin (amount) for the next fiscal
6) Does your district have a Length of Service Award Program
(LOSAP) for volunteer firefighters?
If so, how are the LOSAP funds invested?
Marketable Securities
Annuities
Life Insurance
Other (describe) Demand deposits
Response
Y
Y
Y
Y
$681,153
N
Y
Y
Y
· 7) Has your Fire District adopted an investment policy as required by General Municipal
Law, Section 39?
Page 21
Fishers Island FIRE DISTRICT
Employee and Retiree Benefits
For the Fiscal Year Ending 2009
Total Full Time Employees:
Total Part Time Employees: 3
Account Description Total # of Full # of Part # of Retirees
Code Expenditures Time Time
(All Funds) Employees Employees
9015~ Police and Fire Retirement I
i
--9~25~ £ocal Pensi'on Fund ,I $85,606.00
~- 90301 Social Secudty $1,537.00
9040~ Worker's Compensation $6,217.00 3
insurance
90451 Lite Insurance $19,213.00
90501 Unemployment insurance
9055~ Disability insurance
[
9060~ Hospital and Medical
(Dental) insurance !
9070~ Union Welfare Benefits i
I
9085~ Supplemental Benefit Payment tc
Disabled Fire Fightem
i 91§9( Other Empl°yee Benefits I
Tota,I $1t2,573.0(
~Computed Total From Financial I $t12,fi73.0[
~Section (comparative purposes only)
Page 22 dSC Municipality 471179004000
Fishers Island FIRE DISTRICT
Energy Costs and Consumption
For the Fiscal Year Ending 2009
Energy Type Total Total Volume Units Of Alternative
Expenditures Measure Units Of
Measure
~a.so[ine [ $37tj~
~Diesel Fuel ]. $850j~
2,534[ gallons
I cubic feet
Electricity I $6'302
oai I
25,179~ kilowatts
Page 23 OSC Municipality 471179004000
FIRE DISTRICT DEMOGRAPHICS
_Postal or Mailing Address:
IPO Box 222 IFishers island
Street Address or PO Box City
1(631) 788-7019
Fire District Telephone Number
~firedistdct@fishersisla nd.n [n/e
Official Email Address Website
Physical Address: (if Different From Posta~Address)
I
(631) 788-7094
Fire District Fax Number
Street Address City
N yr~.~--- [06390
State Zip
I I
State Zip
BOARD DEMOGRAPHICS
CHIEF FISCAL OFFICER
IKristen M, Paterson ~Treasurer
Name Title
tPO Box 222 iFishers Island
Street Address or PO Box City State
1(631) 788-7019
Telephone Number
~fi flredistrict@fishe rsisland, n
Email Address
J(631) 788-7094
Fax Number
I 00/00/0000
Term End Date
06390
Zip
~James Wall
Name
tPO Box 222
Street Address or PO Box
1(631)780-7019
Telephone Number
~fifiredistdct@fishersisland,n
Email Address
CHAIRMAN OF THE BOARD
IChairman of the Board
Title
IFishers Island
City
1(631)788-7094
Fax Number
J 00/00/0000
Term End Date
INY 106390
State Zip
I, IKristen Peterson hereby certify that I am the Chief Fiscal Officer of the
iFishem Island Fire District , and that the information provided in the annual
financial report of the IFishem island Fire District , for the fiscal year ended
112/3112009 , is true and correct to the best of my knowledge and belief By entering the personal
identification number assigned by the Office of the State Comptroller to me as the Chief Fiscal Officer
of the IFishem island Fire Distdct , and adopted by me as my signature for
use in conjunction with the filing of the rFishars Island Fire District 's annual
financial report, I am evidencing my express intent to authenticate my certification of the
rFishers Island Fire District 's annual financial report report for the fisoat year
ended112/31/2009 and flied by means of electronic data transmission.
I t I
Name of Repot[ Preparer Personal Identification Number Date
if different than Chief Fiscal Officer of Chief Fiscal Officer
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Summary of significant accounting oolicies:
The Annual Financial Report Update Document of the Fishers Island Fire District (the
District), as of and for the year ended December 31, 2009 has been prepared in
conformity with the cash regulatory basis of accounting as prescribed by the State
Comptroller's Office, which is a comprehensive basis of accounting other than United
States generally accepted accounting principles.
Financial reporting entiW,: The District is a governmental entity that provides fire
protection to the local community. The District receives most of its funding from
property taxes.
The District is governed by laws of the State of New York. The Board of Fire
Commissioners is the legislative body responsible for the overall operation of the
District. All activities and functions performed for the District are its direct
responsibility. The Treasurer serves as Chief Fiscal Officer of the District.
Basis of presentation: The Annual Financial Report Update Document provides
information about the District's funds, including fiduciary funds. The accounts of the
District are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are segregated for the purpose of carrying
on specific activities or attaining certain objectives in accordance with special
regulations, restrictions or limitations. The following fund types are used:
Governmental:
General Fund
The General Fund is the principal operating fund of the District and is used to
account for all financial resources except those required to be accounted for in
another fund. Debt service is also accounted for in the General Fund.
Equipment Reserve Fund
The Equipment Reserve Fund is used to account for and report financial resources
to be used for the acquisition of equipment needed by the District.
Capital Reserve Fund
The Capital Reserve Fund is used to account for and report financial resources to
be used for the acquisition, construction, or renovation of major capital facilities.
-24-
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Summary of significant accounting policies (continued):
Fiduciary Fund
Fiduciary funds are used to account for assets held by the District in a trustee or custodial
capacity. The District utilizes the following fund:
Agency Fund
The Agency Fund is used to account for and report assets held by the District in
the capacity of trustee, custodian or agent for individuals. Agency funds are
custodial in nature and do not involve measurement of results of operations.
Basis of accounting: The accompanying Annual Financial Report Update Document has
been prepared on the cash regulatory basis of accounting, which is a comprehensive basis
of accounting other than generally accepted accounting principles. Under that basis, the
only asset recognized is cash and no liabilities are recognized. All transactions are
recognized as either cash receipts or disbursements. Non-cash transactions are not
recognized in the financial statements.
Cash and cash equivalents: Cash and cash equivalents include demand deposits and
temporary investments with original maturities of three months or less from date of
acquisition.
Interfund transfers: The operations of the District give rise to certain transactions
between funds, including transfers of expenditures and revenues to provide services and
construct assets. This is either by budget, Board resolution, permissive referendum or
mandatory referendum.
Fund balance - reserves and designations: Portions of fund balance are reserved or
designated to either satisfy legal restrictions or to plan for future expenditures. The
following is a description of the reserve utilized by the District:
Reserve for equipment
equipment.
used for the acquisition of fire apparatus and
Reserve for capital - used for the acquisition, construction, or renovation of
major capital facilities.
-25-
COMPANY
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Summary of significant accounting policies (continued):
Real property taxes: All real property assessments are made by the Town of Southold.
Real property tax payments are due in two equal installments; the first half payable on
December 1 (lien and levy date) preceding the year for which the same is levied and the
second half payable May 10, with the first half payable without penalty to January 10 and
the second half payable without penalty to May 31. After May 31, all taxes must be paid
to the Suffolk County Treasurer with a 5% penalty charge and interest at the rate of 1%
per month from February 1.
The Town of Southold Receiver of Taxes collects all real estate taxes for the District.
The Town of Southold Receiver of Taxes distributes the tax collections to the District.
All payments made to the District are made in the year for which the tax has been levied.
The Town of Southold Receiver of Taxes turns over uncollected items to the Suffolk
County Treasurer who continues the collection of these items. Responsibility for the
collection of unpaid taxes rests with Suffolk County.
Budgetary data: The District prepares an operating budget for the General Fund each
year. The budget is adopted by the Board of Fire Commissioners as its final budget for
the coming year. The budget is not subject to referendum. All budget appropriations
lapse at the end of each year.
Use of estimates: The preparation of the Annual Financial Report Update Document in
conformity with the cash regulatory basis of accounting requires management to make
significant estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Deposits with financial institutions and investments:
The District's investment activities are governed by state statutes. Resources must be
deposited in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or
trust companies located within the state. Collateral is required for demand and time
deposits and certificates of deposit not covered by FDIC insurance.
-26-
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Deposits with financial institutions and investments (continued):
The District adopted a formal investment policy allowing investments in special time
deposit accounts, certificates of deposit, obligations of the United States of America,
obligations guaranteed by agencies of the United States of America where the payment of
principaI and interest are guaranteed by the United States of America, obligations of the
State of New York and obligations issued by a municipality, school district, or fire
district other than the District.
Custodial credit risk is the risk that in the event of a bank failure, the District's deposits
may not be returned to it. Governmental Accounting Standards Board (GASB) directs
that deposits be disclosed as exposed to custodial credit risk if they are not covered by
depository insurance and the deposits are either:
1. Insured by FDIC insurance.
2. Collateraiized by securities held by the pledging financial institution's trust
department or agent but not in the District's name.
3. Collateralized by securities held by the pledging financial institution but not
in the District's name.
4. Uncollateralized.
The District's deposits held by the banks are categorized, based on the above criteria, as
follows:
Category Amount
1 $250,000
2
3 723,819
4
Total $973.819
Length of Service Awards Program (LOSAP):
The information contained in this note is based on information for the LOSAP for the
plan year ending December 31, 2009, which is the most recent plan year for which
complete information is available. The funding detail is for the period January 1, 2008
through December 31, 2008.
-27-
~COMPA~Y
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Length of Service Awards Program (LOSAP) (continued):
The District established a defined benefit LOSAP for the active volunteer firefighters of
the District. The program took effect on January 1, 1993. The program was established
pursuant to Article 11-A of the General Municipal Law. The program provides
municipally-funded, pension-like benefits to facilitate the recruitment and retention of
active volunteer firefighters. The District is the sponsor of the program.
Program description:
Participation~ vesting and service credit: Active volunteer firefighters who have
reached the age of 18 and who have completed one year of service are eligible to
participate in the program. Participants acquire a nonforfeitable right to a service award
after being credited with 5 years of firefighting service or upon attaining the program's
entitlement age and completing one year of plan participation. The program's entitlement
age is 65. In general, an active volunteer 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 50 points. Points are granted for the performance of certain activities in
accordance with a system established by the sponsor on the basis of a statutory list
of activities and point values. A participant may also receive credit for 5 years of
firefighting service rendered prior to the establishment of the program.
Benefits: A participant's benefit under the program is the actuarial equivalent of a
monthly payment for life, with 10 years certain, equal to $20 multiplied by the person's
total number of years of firefighting service. The number of years of firefighting service
used to compute the benefit cannot exceed 30. Benefits are not payable until the first day
of the month coincident with or following the attainment of age 65 and completion of
one year of plan participation. Except in the case of disability or death, benefits are
payable when a participant reaches entitlement age. The program provides statutorily
mandated death and disability benefits.
Fiduciary investment and control: Service credit is determined by the governing board
of the sponsor, based on the information certified to the governing board by the fire
company. The fire company must maintain all required records on forms prescribed by
the governing board.
The governing board of the sponsor has retained and designated Hometown Insurance
Agency (Hometown)/RSA Consultants to assist in the administration of the program.
The designated program administrator's functions include providing basic annual
administration services as follows:
-28-
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
o
Length of Service Awards Program (LOSAP) (continued):
Program description (continued):
Fiduciary investment and control (continued):
a) providing participants enrollment forms
b) providing an annual reminder letter with a review list for the current anniversary
date
c) preparation of Explanation of Plan Benefits
d) calculation of Schedule of Benefits and cost annually
e) participants' benefit calculation at time of severance or retirement
f) Auxiliary Fund valuation and suggested deposit
g) summary of required annual contribution
h) annual actuarial review and recommended benefit enhancements
Disbursements of program assets for the payment of benefits or administrative expenses
must be approved. The following is an explanation of the process for approving
disbursements:
Payment of benefits:
Entitlement benefits - When a participant becomes eligible to receive entitlement
benefits, the Plan Sponsor prepares and submits an authorization letter to Hometown
indicating the participant's name, address, age, social security number, term of service
and other pertinent information. Hometown will then facilitate the disbursement of
entitlement benefits.
Death benefits - Upon notification from the Plan Sponsor of a participant's death,
Hometown forwards an individual claim form to the Plan Sponsor for completion.
The Plan Sponsor will then complete and return this form, accompanied by a death
certificate, to Hometown, authorizing the disbursement of a death benefit.
Disability benefits - When a participant becomes disabled, the Plan Sponsor will
notify Hometown in writing of a participant's total and permanent disability.
Hometown will then verify that the participant has been declared 100% disabled by
the Workers Compensation Board. Subsequent to this verification, Hometown will
facilitate the disbursement of disability benefits.
-29-
~C0MPANY
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
o
Length of Service Awards Program (LOSAP) (continued):
Payment of administrative expenses:
1. Per the executed Service Fee Agreement, the Plan Sponsor agrees to payment as
contracted.
Authority to invest program assets is vested in Genworth Financial, Inc. and Standard
Security Life Insurance Company. Subject to restrictions in the program document,
program assets are invested in accordance with a statutory "prudent person" rule. The
Sponsor has invested plan funds in Group Annuity Contracts with guaranteed floor rates
of interest of 3% per annum.
The Sponsor is required to retain an actuary to determine the amount of the Sponsor's
contributions to the plan. The actuary retained by the Sponsor for this purpose is
Harbridge Consulting Group, LLC. Portions of the following information are derived
from a report prepared by the actuary dated March 2009.
Program financial condition:
Assets and liabilities:
Actuarial present value of vested accrued
benefits at December 31, 2008:
Vested
Non-vested
Less assets available for benefits
% of Total
$1,042,253
21,767
$1,064,020
New York Commercial Trust
Standard Security armuity
Genworth Financial annuity
Cash value of life insurance
Total net assets available
for benefits
Total unfunded benefits
1.89%
28.05%
38.37%
41.69%
16,165
239,842
242,564
356,423
854,994
209,026
-30-
~fCO~PAN7
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
J
Length of Service Awards Program (LOSAP) (continued):
Program financial condition (continued):
Receipts and disbursements:
Plan net assets, beginning of year $799,952
Changes during the year:
Plan contributions $ 35,000
Investment income earned 19,050
Plan benefit withdrawals (40,920)
Cash value of life insurance 45,816
Life insurance premium (3,904) 55,042
Plan net assets, end of year $854.994
Contributions:
Range of Sponsor's contribution recommended by actuary $67,292 - $79,375
Amount of Sponsor's actual contribution $80,816
Administration fees:
Fees paid to designated program administrator from
separate District funds $ 3,300
Funding methodology and actuarial assumptions:
Normal costs: The actuarial valuation methodology used by the actuary to determine
the Sponsor's contribution is the Unit Credit Cost Method. The assumptions used by the
actuary to determine the Sponsor's contribution and the actuarial present value of benefits
are:
Assumed rate of return on investment 6%
Mortality table used for:
Pre-retirement: None
Post-retirement: 1994 Group Annuity - Male
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COMPA
Fishers Island Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Commitments and contingencies:
The District is exposed to various risks of loss related to torts; theft of; damage to; and
destruction of assets; injuries to employees; errors and omissions; natural disasters, etc.
These risks are covered by commercial insurance purchased fzom independent third
parties. Settled claims from these risks have not exceeded commercial insurance
coverage.
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eeCOM~A~