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Home My WebLink About2003I I I I I I I I I ! I I I I I I I I I SOUTHOLD FIRE DISTRICT GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULE WITH INDEPENDENT AUDITORS' REPORT December 31,2003 I I TABLE OF CONTENTS December 31, 2003 I I I I I I I I I I I I I I ! I INDEPENDENT AUDITORS' REPORT GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Equity - All Governmental Fund Types Statement of Revenues, Expenditures and Changes in Fund Equity - Budget and Actual - General Fund Notes to General Purpose Financial Statements SUPPLEMENTARY SCHEDULE Schedule of Fire Protection Expenditures - Budget and Actual - General Fund Pa~e 1 2 3 4 5 13 I SOUTHOLD FIRE DISTRICT COUGHLIN FOUNDOTOS I° CULLEN & DANOWSKI, LLP VINCENT D CULLEN CPA JAMES E. DANOWSKI CPA JILL S. FICHTER. CPA GEORGE Z FOUNDOTL)S CPA PETER F. RODRIGUEZ, CPA INDEPENDENT AUDITORS' REPORT I I I i i I I I I I I I To the Board of Fire Commissioners Southold Fire District Southold, New York We have audited the accompanying general purpose financial statements of the Southold Fire District as of December 31, 2003 and for the year then ended. These financial statements are the responsibility of the Fire 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 significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As explained in Note II, the general fixed assets are reported essentially at appraised replacement values, which is a departure from generally accepted accounting principles in the United States of Amedca. The effect of that departure on the combined balance sheet is not reasonably determinable. In our opinion, except for the effects on the general purpose financial statamants of not valuing general fixed assets at historical cost as explained in Note II, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Southold Fire District at December 31, 2003, and results of its operations and changes in fund equity for the year then ended, in conformity with generally accepted accounting principles in the United States of America and the requirements mandated by the State of New York in its Uniform System of Accounts for Fire Districts (State System). Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying supplementary schedule listed in the table of contents is presented for purposes of additional analysis, and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. February 4, 2003 I 'FEN ROOSEVELT AVENUE. PORT JEFFERSON STATION, NEW YORK 11776 3337o O PHONE: 631-473 3400 ' FAX: 631-473-4863 ' WWW. CFCD.COM COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 2003 GoveromentalFunds Fiducia~ Fund Capital Capital Trust And General Projects Reserves A0ency ASSETS Unrestricted cash $ 191,434 $ $ $ Restricted cash 1,315,870 624,744 Accounts receivable Due from other funds 17,171 50,000 25,158 Prepaid expenditures 1 Service award program assets 1,880,629 Land, buildings and equipment Amount to be provided for retirement of long-term debt Account Groups General General Long-Term Fixed Asseta Debt $ $ 7,702,471 1,800,000 Total Assets $ 209,904 $ 1,315,870 $ 674,744 $ 1,905,787 $ 7,702,471 $ 1,800,000 LIABILITIES Accounts payable $ 60,300 $ 129,140 $ $ Accrued liabilities 1,575 Due to other funds 50,458 41,871 Service awards 1,880,629 Bonds payable Other liabilities 25,158 Total Liabilities 112,333 171,011 1,905,787 FUND EQUITY Investment in general fixed assets Fund balances: Reserved for encumbrances Reserved for capital projects Unreserved - undesignated TotalFundEquity $ $ 1,800,000 45,538 1,028,631 52,033 116,228 Totals (Memorandum Only} 2003 1,940,814 92,329 1,299 1,880,629 7,702,471 1,800,000 $ 13,608,778 1,575 92,329 1,880,629 1,800,000 25,158 674,744 7,702,471 1,800,000 1,074,169 674,744 168,261 97,571 1,144,859 674,744 7,702,471 Total Liabilities and Fund Equity $ 209,904 $ 1,315,870 $ 674,744 $ 1,905,787 $ 7,702,471 $ 1,800,000 $ 13,608,776 See Notes to General Purpose Financial Statements Page 2 SOUTHOLD FIRE DISTRICT COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUITY- ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31,2003 REVENUES Real property taxes Interest and earnings Sale of equipment Rentals Refund of prior year expenditures Miscellaneous Total Revenues EXPENDITURES Personal services Equipment and capital outlay Fire protection State retirement system Service award program Social security Workers' compensation Medical and accident insurance Principal retirement Interest payment Total Excenditures Excess (Deficiency) of Revenues Over Expenditures OTHER SOURCES AND USES Oper~ing transfers in Operating transfers (out) Proceeds from issuance of debt Total Other Sources (Uses} Excess (Deficiency) of Revenues and Other Sources Over ExDenditures and Other Uses Fund Equity - Beginning of Year Fund Equity- End of Year General $ 1,113,012 $ 19,035 1,000 140 1,133,187 140,906 102,816 335,450 4,163 231,068 11,533 38,278 14,469 100,000 73,275 1,051,958 81,229 Govsrnmental Funds Capital Project Capital Reserves Buildin~l Equipment $ $ 1,048 3,330 1,048 3,330 597,745 87,515 597,745 87,515 (597,745) 1,048 (84,185) 5O,O00 Totals (Memorandum Only) 1,113,012 23,413 1,000 140 1,137,565 140,906 788,076 335,450 4,163 231,068 11,533 38,278 14,469 100,000 73,275 1,737,218 (599,653) 50,000 (50,000) (50,000) (50,000) 6o,ooo 31,229 (597,745) 1,048 (34,185) (599,653) 66,342 1,742,604 123,338 584,543 2,516,827 $ 97,571 $ 1,144,859 $ 124,386 $ 550,358 $ 1,917,174 See Notes to General Purpose Financial Statements Page 3 SOUTHOLD FIRE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2003 REVENUES Real property taxes Interest and earnings Sale of equipment Rentals Refund of prior year's expenditures Miscellaneous Total Revenues E~ENDITURES Personal services Equipment and capital outlay Fire protection State retirement system Service award program Social security Workers' compensation Medical and accident insurance Principal retirement Interest payment Total Expenditures Excess of Revenues Over Expenditures OTHER SOURCES AND USES Operating transfers (out) Total Other Uses Excess ~Deflciencv) of Revenues Over Expenditures and Other Uses Fund Equity - Beginning of Year Fund Equity- End of Year Variance Modified Favorable Budget Actual (Unfavorable) $ 1,113,000 $ 1,113,012 $ 12 15,000 19,035 4,036 1,000 1,000 140 140 1,128,000 1,133,187 5,187 145,000 140,906 4,094 127,988 102,816 25,172 401,019 335,450 65,569 4,239 4,163 76 232,000 231,068 932 12,000 11,533 467 40,000 38,278 1,722 15,200 14,469 731 100,O00 100,000 86,800 73,275 13,525 1,164,246 1,051,958 112,288 (36,246) 81,229 117,475 (50,000) (50,000) (50,0o0) (50,000) (36,246) 31,229 67,475 38,246 66,342 30,096 $ $ 97,571 $ 97,571 See Notes to General Purpose Financial Statements Page 4 $OUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS I I I i I I I I I I I I I I I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The general purpose financial statements of the Southold Fire District have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standards setting body for establishing governmental accounting and financial reporting principles. The more significant of the Fire District's accounting policies are described below. Financial Reporting Entity The Fire District is governed by the Municipal Law and other laws of the State of New York. The scope of activities included within the accompanying financial statements are those transactions which compdse Fire District operations, and are governed by, or significantly influenced by, the Board of Fire Commissioners. The primary function of the Fire District is to provide fire protection to the community. Services such as fire fighting, fire prevention and public education support the primary function. The financial reporting entity includes all funds, account groups, functions and organizations over which the Fire District officials exercise oversight responsibility. Oversight responsibility is determined on the basis of financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. B. Basis of Presentation The accounts of the Fire District are organized on the basis of funds and account groups, each of which is considered to be a separate accounting entity. These funds and account groups are based upon the requirements of GAAP for local governmental units as prescribed by GASB as well as the Uniform System of Accounts for Fire Districts (the State System). The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity for both the funds and account groups and the revenues and expenditures for the funds. Governmental resources are allocated to and accounted for in individual funds segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The various funds are grouped in the financial statements in the following fund types and account groups: 1. Governmental Fund Types Governmental funds are those through which most governmental functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The measurement focus of the governmental funds is based upon determination of financial position and changes in financial position. The following are the Fire DistriCs governmental fund types: a) General Fund - the general fund is the principal operating fund of the Fire District. It is used to account for all financial resources except those required to be accounted for in another fund. b) Capital Projects Fund - the capital projects fund is used to account for the accumulation of financial rasources and the disbursements for the acquisition, construction or renovation of major capital facilities, or equipment. I Page 5 SOUTHOLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) ! I I I I I I I I I I I I I I Fiduciary Fund Types Fiduciary funds are used to account for assets held by the Fire District in a trustee or custodial capacity: Trust and Agency Fund - the trust and agency fund is used by the Fire District to account for and report assets held by the Fire District in a trustee capacity, or as custodian or agents for individuals, private organizations, other governments, and/or funds. These include expendable trusts, non-expendable trusts and agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 3. Account Groups Account groups are used to establish accounting control and accountability for the Fire District's general fixed assets and general long-term obligations. The two account groups are not '~;unds". They are accounting entities, not fiscal entities, and are concerned only with the measurement of financial position, end not with the results of operations. a) General Fixed Assets Account Grouo - the general fixed assets account group is used to account for land, buildings, improvements and equipment owned by the Fire District. b) General Lono-Term Debt Account Grout - the general long-term debt account group is used to account for all long-term debt and other obligations of the Fire District. Long-term indebtedness includes obligations such as bonds, bond anticipation notes and capital notes. Other obligations include unbilled retirement liabilities and vested or accumulated vacation and/or sick leave which will be funded in future budgets. C. Measurement Focus/Basis of Accounting Measurement focus is the determination of what is measured. Measurement focus is a concept that embraces the objective of financial accounting and reporting. The objective of financial accounting and reporting is to measure the flow of resoumes through the Fire District. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are included in the fund types on the balance sheet. Operating statements of these fund types present increases (i.e. revenues and other soumes) and decreases (i.e. expenditures and other uses) in fund equity. The basis of accounting determines when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The State System gives the Fire District the option to adopt either the modified accrual basis or cash basis of accounting for recording transactions in its governmental and agency fund types as applicable. The Fire District reports its financial activities on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the currant period. If expenditure is the pdmary factor for determining reimbursement under the terms of a grant, revenue is recognized when the expenditure is incurred. Expenditures are recorded when the liability is incurred except: 1. Expenditures for prepaid expanses are recognized at the time of the disbursements when the Fire District is liable for payments. 2. Expenditures for principal and interest on long-term debt are not recognized until due. 3. Expenditures for pension costs for which funding has not yet been provided are recognized in the year that they are billed by the State and/or insurance carrier. 4. Expenditures for compensated absences, such as vacation leave and sick leave, for which funding has not yet been provided are recognized in the year that they are paid. I Page 6 SOUTHOLD FIRE DISTRICT I ! NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I i i I I I I I I I D. Property Taxes Real property taxes are levied annually by the Fire District no later than November 1st and become a lien on December 1st. Real property taxes are payable without penalty and interest in two equal installments by January 10th and May 31st. The Fire District's tax levy is collected by the Town of Southold. Tax collections are remitted in full to the Fire District in accordance with the Suffolk County Tax Act. Suffolk County is responsible for all uncollected taxes. E. Budgetary Data 1. Budget Policies The Fire District administration prepares a proposed general fund budget for approval by the Board of Fire Commissioners in September of each year. Upon Board approval, the budget is effective for the next calendar year. 2. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations, is employed es a control in preventing overexpanditure of established appropriations. Open encumbrances are reported as reservations of fund balance since they do not constitute expenditures or liabilities and will be honored through budget appropriations in the subsequent year. 3. Budget Basis of Accounting Budgets are adopted annually by the Board of Fire Commissioners in accordance with State law. ,a~opropriations authedzed for the current year are increased by the amount of encumbrances carried forward from the prior year. F. General Fixed Assets The State System requires that general fixed assets be recorded at cost as expenditures in the respective funds at the time of purchase and accounted for in the General Fixed Assets Account Group. However, except for land, which is recorded at cost, the Fire District records these fixed asset values at appraised replacement values (see Note II). Donated amounts are valued at estimated fair market value when given. G. General Long-Term Debt General Obligation Debt Long-term debt used to finance various capital projects is accounted for in the General Long-Term Debt Account Group. No liability is recorded for interest payable to maturity. H. Interfund Transfers The operations of the Fire 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 or permissive referendum. I Page 7 SOUTHOLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I I I ! I I I I I I I. Fund Equity Reserves and designations of fund equity are segregated for future or restricted use and are, therefore, not available for appropriation or expenditure. Designation of unreserved fund equity indicates the use of this resource in the ensuing year's budget or tentative plans for future use. J. Use of Estimates The preparation of general purpose financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. K. Total Columns on Combined Statements Total columns on the general purpose financial statements and the supplementary schedule are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. The data in these columns does not present financial position or results of operations in conformity with accounting principles generally accepted in the United States of America. Neither is the data comparable to a consclidation. Interfund eliminations have not been made in the aggregation of this data. L. Comparative Data Comparative total data for the prior year have been presented in selected sections of the accompanying general purpose financial statements in order to provide an understanding of the changes in the govemment's financial position and operations. II. DEPARTURE FROM ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA Accounting principles generally accepted in the United States of America require that long-lived assets be capitalized in the General Fixed Assets Account Group and recorded at historical cost. Except for land which is recorded at cost the Fire District has recorded these assets at appraised replacement value based on an independent appraisal report, dated October 31, 1998, together with additions and disposals through December 31, 2003. The effect of not valuing these assets at historical cost on the general purpose financial statements es of December 31, 2003 has not been determined. III. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets 1. Cash and Investments The Fire District's investment policies are governed by State statutes. The Fire District's monies must be deposited in FDIC-insured commemial banks or trust companies located within the State. The treasurer is authorized to use time and demand accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and its subdivisions, repumhase agreements, and obligations of New York state and its subdivisions. Collateral is required for demand and time deposits as well as certificates of deposit not covered by Federal Deposit Insurance. Obligations that may be pledged as collateral include obligations of the United States and its agencies and obligations of the State and its municipalities. Deposits are valued at cost or cost plus interest and are categorized as either (1) insured, or collateralized with securities held by the Fire District or the Fire District's agent in the Fire District's name, (2) collateralized with I Page 8 SOU'I¥1OLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I I I I I I I I I I securities held by the financial institution's trust department in the Fire District's name, (3) collateralized w~ securities that are held by the financial institution or its trust department but not in the Fire District's name, or uncollateralized. The Fire District's bank balances, totaling $2,175,064 as of December 31,2003, were fully collateralized under category (1). 2. Changes in Fixed Asse~s A summary of changes in general fixed assets per an independent appraisal report dated October 31, 1998, together with additions and disposals through December 31, 2003, is as follows: Balance Balance January 1, Net December 31, 2003 __ Change 2003 Land $ 206,892 $ $ 206,892 Buildings 3,048,638 3,048,638 Equipment 4,250,656 196,285 4,446,941 Total $ 7,506,186 $ 196,285 $ 7,702,471 Land, pumhased in previous years, is recorded at original cost. B. Liabilities and Fund Equity 1. New York State and Local Employees' Retirement System a) Plan OescriDfion Effective January 1, 1997, the Fire District participated in the New York State and Local Employees' Retirement System (ERS). This system is a cost-sharing, multiple-employer, defined benefit pension plan. The system offers retirement and disability benefits, annual cost of living increases, and death benefits to plan members and beneficiaries. The ERS is established pursuant to the New York State Retirement and Social Security Law to provide benefits for the state, local governments, and their employees. ERS plan benefits are guaranteed by the state constitution. The system issues publicly available financial reports that include, financial statements and required supplementary information. These reports may be obtained by writing or calling the system at the following location: NYS and Local Retirement Systems, Govemor Smith State Office Building, Albany, New York 12244, (518) 474-1101. b) Fundino Policy The System is noncontributory except for employees who joined the retirement system after July 27, 1976 with less than ten years of service, who contribute 3% of their salary. Regardless of start date, all members may elect to make member contributions. The Comptroller shall certify annually the expressed as proportions of the members' payroll, which shall be used in computing the contributions required to be made by employers to the pension accumulation fund. The Fire District is required to contribute on an annual basis. Contributions are generally made to the ERS I Page 9 SOUTHOLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I I I I I I I I I I on December 15, for the period April I to March 31 of the following year based on estimated eligible employees' salaries. Contributions are adjusted in the following year based on actual salaries. The following represents the Fire District's regular pension contribution to the system based on annual covered payroll: District Contributions Rate District Contributions 2. Pension Plan - Service Award Program 2003 2002 4.9% 0.6% 5,320 498 General Information The Fire District voters approved a Service Award Program effective January 1, 1993 which is an unqualified deferred compensation plan. Under the State enabling legislation, the Service Award Program was specifically excluded from the state's retirement system. a) Plan Descriotion The Service Award Program has no minimum months of service requirement for participation in the plan. All members who are credited with sufficient "Service Award Points" are eligible. The minimum age of a participant is 18; completion of one year of participation in the plan is required to collect benefits. Participants are fully vested in the fifth year of the plan. Benefits begin on the anniversary date following attainment of age 65. The maximum number of past service years credit is five. b) Benefits The benefits provided to members of the program are established by the plan. The benefit at entitlement date is $20 per month multiplied by the total years of service. Total years of service can not exceed 38 years and service prior to January 1, 1990 is limited to 5 years. The maximum monthly benefit is $400. The normal form of the benefit is in monthly payments for life (with payments guaranteed for at least 10 years). The death benefit represents the present value of accnJed benefits. The accrued benefit represents $20 per month multiplied by the total years of credited service as of the determination date, and is payable beginning at the entitlement date. The termination benefits are 0% vesting up to 4 years and 100% thereafter. c) District Information The following represents information relating to the Fire District's participation in the above pension plan as of December 31, 2002, as determined by the actuarial report received in 2003. The calendar year 2003 information is not available yet. The Fire District contributes to the plan based on a group funding calculation. determining the contributions and present value of accrued benefits are as follows: Present Value of Benefi~ $ 3,331,661 Less: Assets Available for Benefits 1,789,195 The assumptions for Total Unfunded Benefits 1,542,466 Less: Unfunded Liability for Prior Service $ 1,542,466 Present Value of Future Normal Cost I Page 10 SOUTHOLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I I I I I I I I I I d) Contribution Requirements Pre-retirement- interest rate: 7% of compounded annually Pre-retirement- annuity factor: 7% compounded annually 3. Indebtedness a) Lonq-Term Debt Serial Bonds The Fire District borrows money in order to acquire or construct buildings and improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers receiving the benefit of the capital assets. These long-term liabilities, which are full faith and credit debt of the Fire District, are recorded in the General Long-Term Debt Account Group. The provision to be made in future budgets for capital indebtedness represents the amount exclusive of interest, authorized to be collected in future years from taxpayers and others for liquidation of the long-term liabilities. b) Chanqas in Indebtedness The changes in the Fire District's long-term indebtedness during the year ended December 31, 2003 are summarized as follows: Balance Balance January 1, December 31, 2003 Additions Reductions 2003 Serial Bonds 1,900,000 $ 1,900,000 $ $ (100,000) 1,800,000 (lOO,OOo) _$ 1,8oo,ooo c) Maturitv of Lona Term Indebtedness Serial Bonds The following is a summary of maturity of bonded indebtedness: Final Issue Date Maturity 2002 2017 Outstanding Interest December 31, Rate 2003 3.7% - 4.2% 1,800,000 The following is a summary of maturing debt service requirements for the general obligation bonds: Fiscal Year Ending December31, Principal Interest Total 2004 $ 100,000 $ 69,525 $ 169,525 2005 100,000 65,775 165,775 2006 100,000 62,025 162,025 2007 100,000 58,275 158,275 2008 125,000 54,525 179,525 2009 and Thereafter 1,275,000. 263,025 1,538,025 $ 1,800,000 $ 573,150 $ 2,373,150 I Page 11 SOUTHOLD FIRE DISTRICT I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I I I I I I I I I I I I I I I I IV. SPENDING LIMITATION The District did not exceed the statutory spending limitation imposed by State Law. V. REVISED BUDGET The Fire District's 2002 budget was revised as follows: Original Budget $ 1,128,000 Prior year encumbrances 36,246 Revised budget $ 1,164,246 VI. COMMITMENTS AND CONTINGENCIES A. Risk Financing and Related Insurance The Fire 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 commemial insurance purchased from independent third parties. Settled claims from these risks have not exceeded commemial insurance coverage for the past two years. '1 Page 12 SOU1HOLD FIRE DISTRICT I I SUPPLEMENTARY SCHEDULE - SCHEDULE OF FIRE PROTECTION EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31,2003 I I I I I I I I I I I I I I I I I Administrative Office supplies & computers Legal fees & expenses Auditing & accounting Miscellaneous Total Administrative Utilities Utilities & telephone Hydrant rental Total Utilities Travel, conventions, etc. Insurance Firefightars expense Medical exams Fire training seminars Dept. dinners & awards Total Firefighters expense Building Building maintenance Building - substation Total Building Fire equipment & alarm Apparatus maintenance Equipment maintenance Total Fire equipment & alarm Total Fire Protection Exoenditures Variance Modified Favorable Budget Actual (Unfavorable) $ 7,600 $ 7,514 $ 86 11,900 10,200 1,700 12,000 7,275 4,725 5,000 1 ~965 3,035 36,500 261954 9t546 41,000 40,544 456 64,000 63,372 628 105,000 103,916 1,084 20,000 11,750 8,250 52,000 45,962 6,038 8,050 8,044 6 10,450 10,422 28 9,600 9~600 28,100 28~066 34 76,286 54,175 22,111 23~000 22,912 88 99~286 77,087 22~ 199 36,500 31,236 5,264 23,633 10~479 13~154 60,133 41,715 18,418 $ 401 ~019 $ 335r450 $ 651569 (Memorandum Only) See Paragraph on Supplementary Information Included in Independent Auditors' Report Page 13 SOU'I'HOLD FIRE DISTRICT