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HomeMy WebLinkAbout1993 & 1992 FIFD FISHERS ISLAND FERRY DISTRICT \ . FINANCIAL STATEMENTS :\ \\ DECEMBER 31, 1993 AND 1992 \/\ C>H E RT Y /y E/\LS . _ » /\N KS. P. (:::-. §§ CERTIFIED PUBLac A c c O U MTA NTS FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 T A B L E O F C O N T E N T S Independent Auditor's Report Balance Sheets EXHIBIT A Statements of Revenue and Expenses EXHIBIT B Statements of Fund Balance EXHIBIT C Statements of Cash Flows EXHIBIT D Notes to Financial Statements Theater and Airfield Schedules of Revenue and Expenses SCHEDULE 1 Schedule of Federal Awards SCHEDULE 2 Independent Auditor's Report on Compliance with laws and regulations based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report on Internal Control Structure Related Matters Noted in a Financial Statement Audit Conducted in Accordance with Government Auditing Standards Independent Auditor's Report on the Internal Control Structure used in Administering Federal Financial Assistance Programs Independent Auditor's Report on Compliance with Requirements Applicable to Non-major Federal Financial Assistance Programs Independent Auditor's Report on Compliance with General Requirements DOHERTY. BEALS & BANKS. P. C. (203) 443-2033 FAX (203) 444-7086 DOHERTY, BEALS & BANKS, P. C. CARL A BANKS. CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R. DOHERTY CPA STACEY L GUALTIERI. CPA 187 WILLIAMS STREET KAREN A. NAGEL, CPA KATHLEEN A STEAMER. CPA POST OFFICE BOX 59 NEW LONDON. CONNECTICUT 06320 Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 INDEPENDENT AUDITOR'S REPORT We have audited the accompanying Balance Sheets of the Fishers Island Ferry District as of and for the years ended December 31, 1993, and 1992, and the related Statements of Revenue and Expenses, Fund Balance, and Cash Flows for the years then ended. These financial statements are the responsibility of the Fishers Island Ferry 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fishers Island Ferry District as of December 31, 1993, and 1992, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The Theater and Airfield Schedules of Revenue and Expenses and Schedule of Federal Financial Assistance are presented for the purposes of additional analysis and are not a required part of the financial statements of the Fishers Island Ferry District. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. iO1EJ1TBEALS & BANKS P.C. June 6, 1994 EXHIBIT A FISHERS ISLAND FERRY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 1993 AND 1992 ASSETS 1993 1992 CURRENT ASSETS• Cash in Banks $ 569,770 $ 652,557 Imprest Funds 1,450 1,450 Special Cash Deposits 46,143 1,513 Grant Receivable -- 119,191 Traffic and Car Prepayments 7,382 7,733 Prepaid Expenses 44,762 46,331 Total Current Assets $ 669,507 $ 828,775 PROPERTY, PLANT, AND EQUIPMENT: Property, Plant, and Equipment $5,709,106 $5,430,229 Less: Accumulated Depreciation (1,726,505) (1,565,496) Total Property, Plant and Equipment $3,982,601 53,864,733 TOTAL ASSETS $4,652,108 $4,693,508 LIABILITIES AND FUND BALANCES CURRENT LIABILITIES: Current Portion Bonds Payable $ 61,760 $ 60,000 Accounts Payable 89,738 65,569 Retirement Credits 1,065 -- Deferred Property Tax Revenue -- 5,094 Accrued Wages 121,304 109,173 Total Current Liabilities $ 273,867 $ 239,836 LONG-TERM LIABILITIES: Bonds Payable (Net of Current Portion Above) 428,130 465,000 TOTAL LIABILITIES $ 701,997 $ 704,836 FUND BALANCE: (Exhibit C) 3,950,111 3,988,672 TOTAL LIABILITIES AND FUND BALANCE $4,652,108 $4,693,508 (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY. BEALS & BANKS. P. C. EXHIBIT B FISHERS ISLAND FERRY DISTRICT STATEMENTS OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 OPERATING REVENUE: Ferry Service Revenue $ 859,649 $ 826,805 Charter Service 50,498 74,408 Mail Revenue 16,032 14,936 Miscellaneous Voyage Revenue 14,322 14,655 Total Operating Revenue $ 940,501 $ 930,804 OPERATING EXPENSES: Building and Equipment Maintenance $ 17,055 $ 9,204 Clerical Salaries 40,477 38,874 Commissioners' and Manager's Salaries 70,438 65,579 Crew and Purser Salaries 442,821 411,311 Fuels and Lubricants 80,080 85,230 Grounds Maintenance 35,000 -- Insurance Expense 158,930 133,994 Legal and Accounting 12,750 4,800 Local Transfers 4,475 3,850 Office Supplies 7,273 4,674 Other Terminal Expense 855 678 Payroll Taxes 40,212 38,168 Property Taxes 9,398 4,854 Retirement Payments 27,434 -- Stationery and Printing 7,001 1,210 Supplies 19,872 21,276 Utilities 11,153 12,126 Vessel Maintenance (Net of insurance claim of $59,704) 121,938 48,828 Total Operating Expense $1,107,162 $ 884,656 EXCESS (DEFICIT) OF REVENUES OVER EXPENSES FROM VESSEL OPERATIONS BEFORE DEPRECIATION $ (166,661) $ 46,148 Less Depreciation (129,260) (129,278) EXCESS (DEFICIT) OF REVENUES OVER EXPENSES FROM VESSEL OPERATIONS $ (295,921) $ (83,130) OTHER REVENUE AND EXPENSES: Property Tax Revenue $ 150,000 $ 130,600 Interest Income 18,325 25,512 Grant Revenue 104,403 475,844 Theater Revenue (Net) (Schedule 1) 1,107 2,093 Airfield Deficit (Net) (Schedule 1) (41,993) (29,059) Interest Expense (40,443) (44,564) Theater Donations 65,961 -- Total Other Revenue and Expenses $ 257,360 $ 560,426 EXCESS (DEFICIT) REVENUES OVER EXPENSES $ (38,561) $ 477,296 (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY. BEALS & BANKS. P. C. EXHIBIT C FISHERS ISLAND FERRY DISTRICT STATEMENTS OF FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 FUND BALANCE - BEGINNING $3,988,672 $3,620,549 PRIOR PERIOD ADJUSTMENT (Accrued Vacation and Sicktime not previously recorded) -- (109,173) FUND BALANCE - ADJUSTED $3,988,672 $3,511,376 EXCESS (DEFICIT) _REVENUE OVER EXPENDITURES (Exhibit B) (38,561) 477,296 FUND BALANCE - ENDING $3,950,111 $3,988,672 (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY, BEALS & BANKS. P. C. EXHIBIT D FISHERS ISLAND FERRY DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 CASH FLOWS FROM OPERATING ACTIVITIES: Excess (Deficit) Revenue over Expenses - per Exhibit B $ (38,561) $ 477,296 Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: Depreciation - Operating 129,260 129,278 Depreciation - Airfield 31,749 30,228 (Increase) Decrease in: Receivables 119,542 (92,347) Prepaid Expenses 1,569 (11,073) Increase (Decrease) in: Accounts Payable 24,169 43,156 Other Liabilities 8,102 (6,969) Net Cash Provided By Operating Activities $ 275,830 $ 569,569 CASH FLOWS FROM INVESTING ACTIVITIES: Improvements to Property, Plant and Equipment $ (278,877) $ (745,236) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on Bonds Payable $ (60,000) $ (60,000) Proceed from New Bond Issue 24,890 Net Cash Used By Financing Activities $ (35,110) $ (60,000) NET INCREASE (DECREASE) IN CASH $ (38,157) $ (235,667) CASH BALANCE BEGINNING 655,520 891,187 CASH BALANCE ENDING $ 617,363 $ 655,520 (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The Fishers Island Ferry District operates through the Town of Southold as an organization exempt from income tax. The Fishers Island Ferry District's function is to provide residents of Fishers Island with transportation to and from Fishers Island, New York and New London, Connecticut. BASIS OF ACCOUNTING: The Fishers Island Ferry District uses the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. CASH EQUIVALENTS: Cash Equivalents as used in the Statement of Cash Flows (Exhibit D) are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash. DEPRECIATION• Depreciation of property and equipment is charged to income over their estimated lives using the straight-line method. Depreciation for the years ended December 31, 1993, and 1992, is $161,009 and $159,506 respectively. PENSION• The Fishers Island Ferry District contributed to the New York State Employees Retirement System for substantially all full-time employees. Pension expense for the years ended December 31, 1993, and 1992, is $27,434 and $ -0- respectively. DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 (PAGE 2) 2. BONDS PAYABLE: 1993 1992 Munnatacket Debt Service: Serial Bonds maturing and payable annually with interest at 5.9% per annum. Net book value of the Munnatacket is $398,206. $ 140,000 $ 175,000 Race Point Debt Service: Serial Bonds maturing and payable annually with interest at 9.1% per annum. Net book value of the Race Point is $1,008,414. 325,000 350,000 Pension System Serial Bonds: Serial Bonds maturing and payable annually with interest at 8% per annum. 24,890 -- Total Bonds Payable 489,890 1 525,000 The following are the maturities of bonds payable for each of the next five years. 1994 $ 61,760 1995 61,836 1996 61,836 1997 61,836 1998 26,836 Thereafter 215,786 1_4.a 9,890 3. GRANT REVENUE: 1993 1992 Federal Aviation Administration Grant: The Fishers Island Ferry District received funds from the Federal Aviation Administration for reimbursement of the airport's engineering and construction. Grant Amount $ 104,403 $ 475,022 DOHERTY, BEALS & BANKS. P. C. l FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 (PAGE 3) 3. GRANT REVENUE: 1993 1992 New York State Department of Transportation Grant: The Fishers Island Ferry District received funds from the New York State Department of Trans- portation for the airport layout plan. Grant Amount -- -- Federal Disaster Relief Grant -- 822 Total Grant RevenueS 475,844 87,894 4. PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment consists of the following classes of assets: 1993 1992 Land $ 41,717 $ 41,717 Docks and Dolphins 775,552 757,644 Vessel - Munnatauket 904,357 904,357 Vessel - Race Point 1,485,382 1,485,382 Buildings and Improvements 2,199,451 2,042,541 Terminal Expansion 215,065 111,006 Office Equipment 59,807 59,807 Terminal Equipment 27,775 27,775 Total Cost 55,709,106 55,430,229 DOHERTY. BEALS & BANKS. P. C. r SCHEDULE 1 FISHERS ISLAND FERRY DISTRICT THEATER AND AIRFIELD SCHEDULE OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 THEATER OPERATION THEATER REVENUE $ 18,147 $ 18,215 THEATER EXPENSES: Film Rental $ 8,043 $ 7,639 Payroll 5,005 4,865 Utilities 1,496 723 Repairs and Maintenance 966 2,272 Miscellaneous 1,530 623 Total Expenses $ 17,040 $ 16,122 THEATER REVENUE (Net) $ 1,107 $ 21093 AIRFIELD OPERATION AIRFIELD REVENUE $ 5,042 $ 15,602 AIRFIELD EXPENSES: Repairs and Maintenance $ 9,411 $ 6,227 Insurance 3,700 7,500 Utilities 2,175 706 Depreciation 31,749 30,228 Total Expense $ 47,035 $ 44,661 AIRFIELD REVENUE (DEFICIT) (Net) $ (41,993) $ (29,059) (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY. BEALS & BANKS. P. C. SCHEDULE 2 FISHERS ISLAND FERRY DISTRICT SCHEDULE OF FEDERAL AWARDS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 Federal 1993 1992 Grant Disbursements/ Disbursements/ Number Expenditures Expenditures PROGRAM TITLE Major Programs Department of Transportation: Airport Improvement Program 20-106 $ -- $ 475,844 Nonmaior Programs Department of Transportation: Airport Improvement Program 20-106 104,403 -- TOTAL $ 104,403 $ 475,844 (SEE NOTES TO FINANCIAL STATEMENTS) DOHERTY. BEALS & BANKS. P. C. (203) 4432033 FAX (203) 4447086 DOHERTY, BEALS & BANKS, P. C. CARL A. BANKS. CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R. DOHERTY. CPA STACEY L GUALTIERI. CPA 187 WILLIAMS STREET KAREN A NAGEL. CPA KATHLEEN A. STEAMER. CPA POST OFFICE BOX 59 NEW LONDON. CONNECTICUT 06320 June 8, 1994 INDEPENDENT AUDITORS REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 We have audited the financial statements of the Fishers Island Ferry District as of and for the year ended December 31, 1993, and have issued our report thereon dated June 6, 1994 . We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Fishers Island Ferry District is the responsibility of the Fishers Island management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Fishers Island Ferry District compliance with certain provisions of laws, regulations, contract, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the Fishers Island Ferry District complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Fishers Island Ferry District had not complied, in all material respects, with those provisions. I Board of Commissioners June 8, 1994 Page 2 This report is intended for the information of the Board of Commissioners, management, and the Federal Aviation Administration. However, this report is a matter of public record and its distribution is not limited. O , B LS & BANKS, P.C. SLG:pl DOHERTY. BEALS & BANKS. P. C. (203) 443-2033 FAX (203) 444-7086 DOHERTY, BEALS & BANKS. P. C. CARL A BANKS. CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R DOHERTY. CPA STACEY L GUALTIERI. CPA 187 WILLIAMS STREET ' KAREN A. NAGEL. CPA POST OFFICE BOX 59 KATHLEEN A STEAMER. CPA 1 NEW LONDON. CONNECTICUT 06320 June 8, 1994 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 We have audited the financial statements of the Fishers Island Ferry District as of and for the year ended December 31, 1993 , and have issued our report thereon dated June 6, 1994 . We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of the Fishers Island Ferry District for the year ended December 31, 1993 , we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the Fishers Island Ferry District is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may Board of Commissioners June 8, 1994 Page 2 nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future period is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash and Cash Equivalents Receivables Property, Plant and Equipment Payables and Liabilities Debt Fund Balances Government Financial Assistance Programs General and Specific Requirements Reporting Requirements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, and the Department of Transportation. However, this report is a matter of public record and its distribution is not limited. i 1 F 1:��dV1W OHER REALS & BANKS, P.C. SLG:pl DOHERTY, BEALS & BANKS. P. C. (203) 443-2033 FAX (203) 4447086 DOHERTY, BEALS & BANKS, P. C. CARL A BANKS CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R. DOHERTY, CPA STACEY L GUALTIERI. CPA 187 WILLIAMS STREET KAREN A NAGEL. CPA POST OFFICE BOX 59 KATHLEEN A STEAMER. CPA NEW LONDON. CONNECTICUT 06320 June 8, 1994 INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 We have audited the financial statements of Fishers Island Ferry District as of and for the year ended December 31, 1993 , and have issued our report thereon dated June 6, 1994 . We conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments. " Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the Fishers Island Ferry District complied with laws and regulations, noncompliance with which would be material to a federal financial assistance program. In planning and performing our audits for the year ended December 31, 1993, we considered the internal control structure of the Fishers Island Ferry District, in order to determine our auditing procedures for purpose of expressing our opinion on the financial statements of the Fishers Island Ferry District, and report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the financial statements in a separate report dated June 6, 1994. The management of the Fishers Island Ferry District is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related Board of Commissioners June 8, 1994 Page 2 costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future period is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements - Political activity - Davis-Bacon Act - Civil rights - Cash management - Relocation assistance and real property acquisition - Federal financial reports - Allowable costs/cost principles - Drug-free Workplace Act - Administrative requirements Specific Requirements - Types of services - Matching, level of effort - Special reporting - Special Tests DOHERTY. BEALS & BANKS. P. C. Board of Commissioners June 8, 1994 Page 3 Claims for Advances and Reimbursements Amounts Claimed or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1993, the Fishers Island Ferry District had no major federal financial assistance programs and expended 100% of its total federal financial assistance under the Airport Improvement Program. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned non-major programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly we do not express such an opinion. This report is intended for the information of the audit committee, management, and Department of Transportation. However, this report is a matter of public record and its distribution is not limited. OHERT � BEALS & BANKS, P.C. SLG;pl DOHERTY. BEALS & BANKS. P. C. (203) 443-2033 FAX (203) 444-7086 DOHERTY, BEALS & BANKS, P. C. CARL A BANKS. CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R DOHERTY. CPA .i STACEY L GUALTIERI. CPA 187 WILLIAMS STREET KAREN A NAGEL. CPA KATHLEEN A STEAMER, CPA POST OFFICE BOX 59 NEW LONDON, CONNECTICUT 06320 June 8, 1994 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO NON-MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 We have audited the general purpose financial statements of the Fishers Island Ferry District as of and for the year ended December 31, 1993 , and have issued our report thereon dated June 6, 1994. In connection with our audit of the general purpose financial statements of the Fishers Island Ferry District and with our consideration of the District's internal control systems used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments, " we selected certain transactions applicable to certain non-major federal financial assistance programs for the year ended December 31, 1993 . As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or not allowed; and any special tests and provisions that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the District's compliance with these requirements. Accordingly we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the District has not complied, in all material respects, with those requirements. This report is intended for the information of the audit committee, management, and the Department of Transportation. However, this report is a matter of public record and its distribution is not limited. Loll 6atk DOHERT BEALS & BANKS, P.C. ■ (203) 443-2033 *, FAX (203) 444-7086 J DOHERTY, BEALS & BANKS. P. C. CARL A BANKS. CPA CERTIFIED PUBLIC ACCOUNTANTS STEPHEN R. DOHERTY. CPA STACEY L GUALTI£R1, CPA 187 WILLIAMS STREET KAREN A NAGEL. CPA KATHLEEN A. STEAMER CPA POST OFFICE BOX 59 NEW LONDON. CONNECTICUT 06320 June 8, 1994 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH GENERAL REQUIREMENTS Board of Commissioners Fishers Island Ferry District Fishers Island, NY 06390 We have audited the financial statements of the Fishers Island Ferry District as of and for the year ended December 31, 1993, and have issued our report thereon dated June 6, 1994. We have applied procedures to test the Fishers Island Ferry District's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1993 : Political activity Davis-Bacon Act Civil rights Cash management Federal Financial Reports Allowable costs/cost principles Drug-free Workplace Act Administrative requirement Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments. " Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Fishers Island Ferry District's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Fishers Island Ferry District had not complied, in all material respects, with those requirements. Board of Commissioners June 8, 1994 Page 2 This report is intended for the information of the audit committee, management and the Department of Transportation. However, this report is a matter of public record and its distribution is not limited. :�DOHER , BEALS & BANKS, P.C. SLG:pl F DOHERTY. BEALS & BANKS. P. C.