HomeMy WebLinkAbout2010 FI Waste Management DistrictF' he I I dWasteM g D' '
IS rs s afl Rna ement istrlct
P.O. Box 22
Fishers Island, NY 06390
Tele 631-788-7455
Fax 631-788-7451
&t~xt Rq#krty, (;hair
Tim Patterson, 7>easurer
Sarah Malinou~ski
.lt),s'eph ]Iirsc~/kM
October 5, 20~.1
John Cushman
53095 Route 25
PO Box 1:1.79
Southold NY 11.971-0959
JohFI,
John Patterson mentioned that you were interested in seeing the 20:[0 financial
statement of FIWMD, :[ have enclosed it,
Thank you,
Beth Stern
FISHERS ISLAND WASTE MANAGEMENT
A COMPONENT UNIT OF
THE TOWN OF SOUTI][OLD
FINANCIAL STATEMENTS
DECEMBER 31, 2010
FINANCIAL SECTIOI~
Independent Auditor's Report ...........................................................................................................
~UIILED SUPPLEMENTARY INFORMATIONJ
Management's Discussion and Analysis ................................................................................................ 2-3
~3ASIC FiNANCIAL STATEMENTSJ
Statement of Net Assets ................................................................................................................ 4
Statement of Activities .................................................................................................................. 5
Balance Sheet- Governmental Funds .................................................................................................. 6
Reconciliation of the Government Funds
Balance Sheet to the Statement of Net Assets ............................................................................. 7
Statement of Revenues, Expenditures, and Changes
In Fund Balances- Governmental Funds .................................................................................. 8
Reconciliation of the Government Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
To the Statement of Activities ..............................................................................................9
Notes to the Financial Statements ................................................................................................... 10
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND
ANALYSIS
Schedule of Revenues, Expenses, and Changes in Net Assets- Budget and Actual .......................................... 16
DOHERTY, BEALS & BANKS, P.C.
Board of Commissioners
Fishers Island Waste Management
Fishers Island, NY 06390
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying financial statements of the Fishers Island Waste Management, (a component unit
of The Town of Southold) as of and for the year ended December 31, 20l 0, which collectively comprise FIWM's
basic financial statements as listed in the table of contents. These financial statements are the responsibility of the
Fishers Island Waste Management'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 overall financial statement presentation.
We believe that our audit provides a reasonable basis tbr our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of the Fishers Island Waste Management as of December 31, 2010, 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.
July 7, 2011
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Stacey L. Guattied, CPA
Kathleen A. Steamer, CPA
David J. Miceli, CPA
AudreyA. Leone, CPA
187 Williams Street I New London, CT 06320 I (v) 860.443.2033 I (0 860.444.7086 I www. dbbcpa.com
FISHERS ISLAND WASTE MANAGEMENT
MANAGEMENT'S DISCUSSION AND ANALYSES
December 31, 2010
The following is a discussion and analysis of the Fishers Island Waste Management's financial performance,
providing an overview of the Fishers Island Waste Management's financial activities for the year ended December 3 I,
2010. Use this section in conjunction with the Fishers Island Waste Management's basic financial statements.
FINANCIAL ANALYSIS OF THE FISHERS ISLAND WASTE MANAGEMENrF
Our analysis below focuses on the net assets and changes in net assets of the Fisbers Island Waste Management's
activities.
Condensed Statement of Net Assets
Primary Activities
December 31, 2010 and 2009
Assets
Current and other assets
Capital assets
Total assets
Liabilities
Current and other liabilities
Total liabilities
2010 2009
$ 879,043 $ 921,706
2,857,205 2,927,481
3,736,248 3,849,187
12,239 8,901
I2,239 8,901
3,724,009 3,840,286
$ 3,724,00~9 $ 3,840,28~6
Net Assets
Umestricted (deficit)
Total net assets
Changes in Net Assets
Fishers Island Waste Management
For the years ended December 3 I, 2010 and 2009
Program Revemles
Charges for services
General Revenues
Property taxes
Interest earnings
2010 2009
$ 39,177 $ 34,805
39,177 34,805
381,950 399,800
5,080 4,637
387,030 404,437
Total Revenues 426,207 439,242
Program Expenses
Operating expenses
Total Expenses
Increase (decrease) in Net Assets
542,484 581,198
542,484 581,198
$ (116,277) $ (141,956)
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2010
FINANCIAL ANALYSIS OF THE FISHERS ISLAND WASTE MANAGEMENT (continued)
The following schedule presents a summary of Fishers Island Waste Management revenues and expenses for the year
ended December 3 I, 2010 and the amount of change and percentage of total in relation to the prior year.
2010 2009 (Decrease) Change
Revenues
Charges for services $ 39,177 $ 34,805 $ 4,372 12.56%
Property taxes 381,950 399,800 (17,850) (4.46%)
Interest earnings 5,080 4,637 443 9.55%
Total Revenues $ 426,207 $ 439,242 $ (13,035) (2.97)%
Program Expenses
Operating expenses $ 542,484 $ 581,198 $ (38,714)
Total Expenses $ 542,484 $ 581,198 $ (38,714)
(6.67%)
(6.67%)
BUDGETARY HIGHLIGHTS
Over the course of the year, the Fishers Island Waste Management revises the budget as needed so that expenditures
do not exceed appropriations. Various transfers between appropriations were approved for this purpose.
CONTACTING THE DISTRICT
This financial report is designed to provide t/~e reader with a general overview of FIWM's finances and to
demonstrate FIWM's accountability for the funds it receives. Requests for additional information can be directed to:
Cynthia Riley
Chairperson
Fishers Island Waste Management
Fishers Island, NY 06390
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2010
WITH COMPARATIVE TOTALS FOR 2009
CURRENT ASSETS
Cash and cash equivalents
Accom~ts receivable
Prepaid expenses
TOTAL CURRENT ASSETS
ASSETS
2010 2009
$ 15,822 $ 26,290
915 3,400
9,590 24,692
26,327 54,382
PROPERTY AND EQUIPMENT
Garbage facilities and improvements
Equipment
Less: accumulated depreciation
NET PROPERTY AND EQUIPMENT
3,225,675 3,225,675
319,499 287,299
3,545,174 3,512,974
(687,969) (585,493)
2,857,205 2,927,481
OTHER ASSETS
Invesanents-Fixedlncome
TOTAL ASSETS
852,716 867,324
$ 3,736,248 $ 3,849,187
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Payroll taxes payable
TOTAL CURRENT LIABILITIES
$ 8,380 $ 5,803
3,859 3,098
12,239 8,901
NET ASSETS
3,724,009 3,840,286
TOTAL LIABILITIES AND NET ASSETS
See notex to financial ~tatement~.
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DOHERTY, BEALS & BANKS, P.C.
$ 3,736,248. $ 3,849,187
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2010
WITH COMPARATIVE TOTALS FOR 2009
REVENUE
Town of Southold
Interest
Realized gain(loss) on investments
Unrealized gain(loss) on investments
Landfill revenue
Re~nds
TOTAL REVENUE
EXPENSES
Accounting
Bank charges
Building maintenance
Building utilities
Casual labor
Commissioners' fees
Compost equipment maintenance
Compost station utilities
Consultants
Depreciation
Employee benefits
Equipment maintenance
Ferry transportation
Fines and penalties
Garbage tipping fees and hauling
Hazardous waste removal
Insurance
Landfill expense
Landfill maintenance
Legal fees
Office expense
Payroll expenses
Professional - other
Transfer station maintenance
Transfer station utilities
Wages
Workmans compensation insurance
2010 2009
381,950 $ 399,800
5,928 4,637
(411)
(437)
39,177 33,408
1,397
426,207 439,242
9,I51 8,070
2,685 1,550
675 5,978
5}351 5,487
1,356 2,234
16,509 14,132
8,515 7,682
2,789 2,680
322 7,393
102,476 I09,902
35,168 34,502
10, I63 19,765
59,545 43,243
205 42
84,285 84,273
12,149 15,270
19,358 23,255
8,600
6,950 23,690
1,600
4,554 4,212
12,749 10,393
10,380
1,259
3,389 3,341
I35,744 I29,382
8,396 2,883
TOTAL EXPENSES
542,484 581,198
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
(116,277) (141,956)
3,840,286 3,982,242
NET ASSETS - ENDING
$ 3,724,009 $ 3,840,286
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
BALANCE SHEET- GOVERNMENTAL FUNDS
AS OF DECEMBER 31, 2010
ASSETS
Cash and investments
Accounts receivables
Prepaid expenses
Total assets
LIABILITIES
Current Liabilities
Accounts payable
Payroll taxes payable
Total liabilities
FUND BALANCES
Unrestricted (deficit)- Undesignated
Total fm~d balances
Total liabilities and net assets
Total
Governmental
General Fund
$ 868,538 $ 868,538
915 915
9,590 9,590
$ 879,043 $ 879,043
$ 8,380 $ 8,380
3,859 3,859
12,239 12,239
866,804 866,804
866,804 866,804
$ 879,043 $ 879,043
See notes to financia! statements.
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DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENT FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 2010
Total Governmental Fund Balances
$ 866,804
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
The cost of building and acquiring capital assets (land, buildings, equipment)
financed from the governmental funds are reported as expenditures in the year
they are incurred, and the assets do not appear on the balance sheet. However,
the Statement of Net Assets includes those capital assets among the assets of Fishers Island
Waste Management as a whole, and their original costs are expensed over their useful lives.
Original cost of capital assets
Accumulated depreciation
3,545,I74
(687,969)
2,857,205
$ 3,724,009
Total net assets
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2010
Total
Governmental
REVENUES General Fund
Real property taxes $ 381,950 $ 381,950
Landfill revenue 39,177 39,177
Use of' money and property 5,080 5,080
Total reveaues 426,207 426,207
EXPENDITURES
General government support 48,025 48,025
LandfilI operation 276,125 276,125
Transportation 59,545 59,545
Employee benefits 56,313 56,313
Capital outlay 32,200 32,200
Total expenditures
Excess (Deficiency) of Revenues over Expenditures
472,208 472,208
(46,00I) (46,001)
912,805 912,805
$ 866,804 $ 866,804
Fund balances- beginning oftheyear
Fund balances- end oftheyear
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
COMPONENT UNIT OF TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENT FUNDS STATEMENT REVENUES~
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF
ACTIVITIES
AS OF DECEMBER 31, 2010
Net Change in Fund Balances
Amounts reported for govetranental activities in the
Statement of Activities are different because:
$ (46,001)
Capital Related Differences
Capital outlays to purchase or build capital assets are reported in governmental ftmds
as expenditures. However, for governmental activities those costs are capitalized and
shown in the statement of net assets and allocated over their useful lives as amlual
depreciation expenses in the Statement of activities
Capital outlays
Depreciation expense
32,200
(102,476)
(70,276)
$ (116,277)
Total change in net assets
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DOHERTY~ BEALS & BANKS, P.C.
HSHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Fishers Island Waste Management (FIWM) have been prepared in conformity
with accounting principles generally accepted in the United States of America (GAAP) for govermnental
units. The GovenunentaI Accounting Standards Board (GASB) is the standard-setting body for establishing
governmental accounting and financial reporting principles. Significant accounting principles and policies
used by FIWM are as follows:
A. Reporting Entity
FIWM is governed by fl~e laws of New York State. FIWM is an independent entity governed by an
elected Board of Commissioners consisting of five members. The Board is responsible for, and
controls all activities within FIWM. Board members have authority to make decisions, power to
appoint management, and primary accountability for ail fiscal matters.
The £mancial reporting entity is based on criteria set forth by GASB Statement No. 14, The
Financial Reporting Entity and No. 39, Determining Whether Certain Organizations are
Component Units. The financial reporting entity consists of the primary government, organizations
for which the primary government is financially accountable and other organizations for which the
nature and significance of their relationship with the primary government am such that exclusion
would cause the reporting entity's financial statements to be misleading or incomplete.
The accompanying financial statements present the activities of FIWM. FIWM is a component unit
of The Town of S outhold, another reporting entity.
Basis of Presentation
Fund Financial Statements
The fund financial statements provide information about FIWM's funds. The emphasis of fund
financial statements is on major governmental funds as defined by GASB. The Financial statements
reflect the following fund category:
Governmental Fund:
General Fund - is the general operating fund and is used to account for all financial
transactions except those required to be accounted for in another fund.
Basis of Accounting and Measurement Focus
The statement of activities and the statement of net assets are reported on the accrual basis
of accounting using the economic resources measurement focus. Revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred, regardless of
when the related cash transaction takes place. On an accrual basis, revenue from real
property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from
ferry operations and grants are recognized in the fiscal year in which all eligibility
requirements have been satisfied and the related expenditures are incurred
DOHERTY, BEALS & BANKS1 P.C.
FISHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The fund statements are reported on the modified accrual basis of accounting using the current
financial resources measurement focus. Revenues are recognized whnn measurable and available.
FIWM considers all revenues reported in the governmental funds to be available if the revenues are
collected within 180 days after the end of the fiscal year, except for real property taxes, which are
considered to be available if they are collected within 60 days after the end of the fiscal year.
Expenditures are recorded when the related fund liability is incurred, except for principal and
interest on general long-term debt, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions are
reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions
under capital leases are reported as other financing sources.
D. Real Property Taxes
Calendar
Real property taxes are levied annually by the Town of Southold no later than October 1~ and
become a lien on December 1st. Taxes were collected by the Town of Southold and remitted to
FIWM from December to June.
Enforcement
Uncollected real property taxes are subsequently enforced by the County of Suffolk in June.
Restricted Resources
When an expense is incurred for purposes for which both restricted and unrestricted net assets are
available, FIWM's policy concerning which to apply first varies with the intended use, and with
associated legal requirements, many of which are described elsewhere in these Notes to Financial
Statements.
F. 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported revenues and expenses during the reporting period.
Accordingly, actual results could differ from those estimates. Estimates and assumptions are made
in a variety of areas, including computation of encumbrances, compensated absences, potential
contingent liabilities and useful lives of longdived assets.
Cash and Cash Equivalents/h~vestments
Cash and cash equivalents consist of cash on hand and bank deposits with a maturity date of tltree
months or less from date of acquisition.
Receivables
Receivables include amounts due from customers for services provided by the FIWM. Receivables
are recorded and revenues recognized as earned or as specific program expenditures are incurred.
DOHERT¥, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 31~ 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. Prepaid Items
Prepaid items represent payments made by FIWM for which benefits extend beyond year~end.
These payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in the fund financial statements. A current asset for the prepaid amounts is recorded at
the time of purchase and an expense/expenditure is reported in the year the goods or services are
consumed.
J. Capital Assets
Capital assets purchased or acquired with an original cost of $5,000 or more are reported at
historical cost or estimated historical cost. Contributed assets are reported at fair market value as of
the date received. Additions, improvements, and other capital outlays that significantly extend the
useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed
as incurred. Depreciation on all assets is provided on the straight-line basis over the following
estimated useful lives:
Buildings 10-40 years
Improvements and other 20 years
Machinery and equipment 5-10 years
Infrastmctm-e 20-30 years
Infrastructure assets, consisting of certain improvements other than buildings including roads, curbs,
sidewalks, bridges and street lighting are capitalized along with other capital assets.
In the fund financial statements, capital assets are recorded as capital outlay expenditures in the
governmental fund upon acquisition.
Deferred Revenue
Deferred revenue arises when potential revenues do not meet both the measurable and available
criteria for recognition in the current period. Deferred revenues also arise when resources are
received by FIWM before it has a legal claim to them, as when grant monies are received prior to
the incurrence of qualifying expenditures. In subsequent periods, when both recognition criteria are
met, or when FIWM has legal claim to the resources, the liability for deferred revenues is removed
and revenues are recognized.
Accrued Liabilities and Long-Term Obligations
In the governmental funds, payables and accrued liabilities are paid in a timely manner and in full
from current financial resources.
Equity Classifications
In the Government-wide Statements, equity is classified as net assets:
Unrestricted net assets - All other net assets that do not meet the definition of "restricted"
or "invested in capital assets, net of related debt."
-12-
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 3122010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the Fund Statements, govermuental fund equity is classified as fund balance. Fund balance is
further classified as reserved and unreserved, with unreserved further split between designated and
undesignated. Amounts reserved for encumbrances, inventory, insurance claims and debt service
represent portions of fund equity, which are required to be segregated in accordance with state law
or GAAP. Designations of fund balances in governmental funds indicate the utilization of these
resources in the suhsequent year's budget or tentative plans for future use. There are no such funds
for current year.
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENTS AND THE DISTRICT-WIDE STATEMENTS
Due to the differences in the measurement focus and basis of accounting used in the governmental fund
statements and the district-wide statements, certain financial transactions are treated differently. The basis
financial statements contain a full reconciliation of these items. The differences result primarily from the
economic resource measurement focus of the Statement of Activities, compared with the current financial
resource measurement focus of the governmental funds.
A. Total Fund Balances of Govermmental Funds vs. Net Assets of Govenunental Activities
Total fund balances of FIWM's governmental funds differ from "net assets" of goverumentaI
activities reported in the Statement of Net Assets. This difference primarily results from the
additional long-term economic focus of the Statement of Net Assets versus the solely current
financial resources focus of the governmental fund Balance Sheets.
B. Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement of Activities
Differences between the Statement of Revenues, Expenditures and Changes in Fund Balance and
the Statement of Activities fall into one of three broad categories.
Long-Term Revenue and Expense Differences
Long-term revenue differences arise because governmental funds report revenues only when they
are considered "available," whereas the Statement of Activities reports revenues when earned.
Differences in long-term expenses arise because governmental funds report on a modified accrual
basis, whereas the accrual basis of accounting is used on the Statement of Activities.
Capital Related Differences
Capital related differences include the difference between proceeds for the sale of capital assets
reported on fund statements and the gain or loss on the sale of assets as reported on the Statement of
Activities, and the difference between recording an expenditure for the purchase of capital items in
the fund statements and depreciation expense on those items as recorded in the Statement of
Activities.
-13~
DOHERTY~ BEALS & BANKS~ P.C.
FISHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENTS AND THE DISTRICT-WIDE STATEMENTS (Continned)
Long-Term Debt Transaction Differences
Long-term debt transaction differences occur because the issuance of long-term debt provides
current financial resources to governmental funds, but is recorded as a liability in the Statement of
Net Assets. In addition, both interest and principal payments are recorded as expenditures in the
fund statements when due and payable, whereas interest expense is recorded iu the Statement of
Activities as it accrues, and principal payments are recorded as a reduction of liabilities in the
Statement of Net Assets. There are no Long-Term Debt Transaction differences in current year.
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgets
The FIWM administration prepares a proposed budget for approval by tbe Board of Commissions
for the general fund, the only fund with a legally adopted budget.
Appropriations are adopted at tbe program line item level.
Appropriations established by the adoption of the budget constitute a limitation on expenditures
(and encumbrances) that may be incurred. Appropriations lapse at the end of the fiscal year unless
expended or enanmbered. Encumbrances will lapse if not expended in the subsequent year.
Appropriations authorized for the current year are increased by the planned use of specific reserves,
and budget amendments approved by the Board of Commissions as a result of selected new revenue
sources not included in the original budget (when permitted by law), These supplemental
appropriations may occur subject to legal restrictions, if the Board approved them because of a need
that exists wbich was not determined at the time the budget was adopted.
Budgets are adopted annnally on a basis consistent with GAAP. Appropriations authorized for the
year are increased by the amount of encumbrances carried forward from tbe prior year.
Budgets are established and used for individual capital project funds expenditures as approved by a
special referendum of FlWM's voters. The maxinmm project amount authorized is based primarily
upon the cost of the project, plus any requirements for external borrowings, not annual
appropriations. These budgets do not Iapse and are carried over to subsequent fiscal years until the
completion of the projects.
B. Encumbrances
Encumbrance accounting is used for budget control and monitoring purposes and is reported as a
part of the governmental funds. Under this method, purchase orders, contracts and other
commitments for the expenditure of monies are recorded to reserve applicable appropriations.
Outstanding encumbrances as of year-end are presented as reservations of fund balance and do nnt
represent expenditures or liabilities. These commitments will be honored in the subsequent period.
Related expenditures are recognized at that time, as tbe liability is incurred or the cormnitment is
paid.
~ 14-
DOHERTY, BEALS & BANKS, P.C.
FISHERS ISLAND WASTE MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
DEPOSITS WITH FiNANCIAL iNSTITUTIONS AND INVESTMENTS
The FIWM's investment policies 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 obligations of the U.S. Treasury and U.S. Agencies,
repumhase agreements and obligations of New York State or its localities. Collateral is required for demand
and time deposits and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged
as collateral are obligations of the United States and its Agencies and obligations of New York State and its
municipalities. Investments are stated at fair value.
Custodial credit risk is the risk that in the event of a bank failure, FIWM's deposits may not be returned to it.
GASB directs that deposits be disclosed as exposed to custodial credit risk if tfiey are not covered by
depository insurance and the deposits are either:
Uncollateralized,
Collateralized by securities held by the pledging financial institution, or
Collateralized by securities held by the pledging financial institution's trust department or agent but
not in FIWM's name.
None of FIWM's aggregate bank balances, not covered by depository insurance, were exposed to custodial
bredit risk as described above at year-end.
The District did not have any investments at year-end or during the year. Consequently, FIWM was not
exposed to any material interest rate risk or foreign currency risk.
CAPITAL ASSETS
Capital asset balances and activity for the year ended December 31, 2010 were as follows:
Balance Balance
1/1/2010 Additions Reductions 12/31/10
Govenunental activities
Capital assets not being depreciated
Land $ 517,262
Total capital assets
not being depreciated 517,262
Capital assets being depreciated
Buildings and improvements
Machinery and equipment
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Total capital assets,
being depreciated, net
Capital assets, net
$ $
$ 517,262
517,262
2,708,413 2,708,413
287,299 32,200 319,499
2,995,712 32,200 3,027,912
365,390 90,000 455,390
220,103 12,476 232,579
585,493 102,476 687,969
2,410,219_ (70,276)
$ 2,927,481 $ (70,276)
DOHERT¥, BEALS&BANKS, P.C.
2,339,943
$2,857,205
FISHERS ISLAND WASTE MANAGEMENT
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES
IN NET ASSETS- BUDGET AND ACTUAL
December 31, 2010
Charges for services
Property taxes
Interest earnings
Total Revenues
Program Expenses
Operating expenses
Total Expenses
Original
Budget Final Budget 2010
Variance with
Final Budget
Positive/(Negative)
25,000 $ 25,000 $ 39,177
381,950 381,950 381,950
5,080
$ 406,950 $ 406,950 $ 426,20~7
$ 14,177
5,080
$ 19,257
556,950 556,950 472,208 $
(84,742)
$ 556,950 $ 556,950 $ 472,208 $
(84,742)
~16-
DOHERTY, BEALS & BANKS~ P.C.