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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 -I- 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) -2- 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 -3- 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~. -4- 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 -5- 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. -6- 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 -9- 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.