HomeMy WebLinkAbout1975-1980 FIFD f
REPORT OF EXAMINATION
OF '
FISHERS ISLAND FERRY DISTRICT
TOWN OF SOUTHOLD
OFFICE1='STATS OM ROLLER
E WDA D �REG::
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2.
Fishers Island Ferry District
Town of Southold
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AUDIT FINDINGS
Board of Commissioners
Purchase of New Ferry
In 1977 the district advertised for bids for the construction of a new
ferry. The only bid submitted was for $846,000.00, less $110,000.00 in trade
for the old ferry, or a net of $736,000.00. This was in excess of the $730,000.00
authorized by the voters to be borrowed to finance the project. The district
negotiated with the sole bidder and agreed to a revision in the specifications
and a revised bid of $741,100.00 less $152,100.00 in trade, or a net of $589,000.00.
Subsequently, the district paid this firm an additional $47,400.00 for a bow
thruster and life rafts, which had been deleted from the original specifications.
After the original bid had been rejected, the district .should have revised
the specifications and re-advertised for bids. Purchase of the bow thruster for
$36,400.00 and the life raft for $11,000.00, both in excess of $5,000.00, should
have been awarded to the lowest responsible bidder after public advertisement
for. bids (General Municipal Law, §103).
Professional Services
The board engaged the services of a naval architect for design and inspection
services relating to the construction of a ferry.
Minutes of the board indicated estimated costs as $13,550.00. Total payments
to the architect amounted to $19,492.75 (included in this amount was $1,228.69
for travel, blue prints and telephone costs).
No written contract was executed to establish the basis of the charges nor
did the invoices of the architect detail the changes. No record could be found
to support the increase cost in excess of the amount authorized by the board.
It is recommended that contracts for professional services specify what
services are to be rendered and the basis for any changes.
Payroll Procedures
A review of internal controls covering employee leave indicated that no time
or leave records were kept for employees. The final check for the business
manager, who resigned in 1980, included payment for twenty days unused vacation
and thirty days unused sick leave for which no supporting record was available.
We recommend that leave records be maintained for each employee.
STATE OF NEW YORK
OFFICE OF THE STATE COMPTROLLER
DIVISION OF MUNICIPAL AFFAIRS
1.
STATE OF NEW YORK
OFFICE OF THE STATE COMPTROLLER
L .
ALBANY,NEW YORK
• _ 12236
EDWARD V.REGAN 81M-532
STATE COMPTROLLER
January 1, 1975 - December 31, 1980
Report Filed - December 14, 1981
TO THE CHAIRMAN AND MEMBERS OF THE
BOARD OF COMMISSIONERS OF THE
FISHERS ISLAND FERRY DISTRICT
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK:
Pursuant to Article 3 of the General Municipal Law, we have examined the
transactions of the Fishers Island Ferry District for the period January 1, 1975
through December 31, 1980, for compliance with various statutes and regulations.
The financial statements of the various funds and account groups of the
Fishers Island Ferry District for the fiscal years ended December 31, 1975,
1976, 1977, 1978, 1979 and 1980 were audited by independent accountants and
copies of these reports are on file in the town hall in Southold.
Comments with respect to our examination are set forth on the following
page of this report.
Very truly yours,
OFFICE OF THE STATE COMPTROLLER
DIVISION OF MUNICIPAL AFFAIRS