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HomeMy WebLinkAbout1994 & 1993 FIFD ht S .', USHERS ISLAND FERRY DISTRICT - t.. FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 OHERTV EALS 8c AN KS, P. C. - CERTIFIED PUBLIC ACCOUNTANTS FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 CONTENTS Independent Auditor's Report . . . . . . . . . . . . . . . . . 1 Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . 2 Statements of Revenue and Expenses . . . . . . . . . . . . . . 3 Statements of Fund Balance . . . . . . . . . . . . . . . . . . 4 Statements of Cash Flows . . . . . . . . . . . . . . . . . . . 5 Notes to Financial Statements . . . . . . . . . . . . . . . . . 6 Theater and Airfield Schedules of Revenue and Expenses . . . . . . . . . . . . . . . . . . . . . . . 11 Schedule of Federal Awards . . . . . . . . . . . . . . . . . 12 Independent Auditor's Report on Compliance with laws and regulations based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards . . . . . . . . . . . . 13 Independent Auditor's Report on Internal Control Structure Related Matters Noted in a Financial Statement Audit Conducted in Accordance with Government Auditing Standards . . . . . . . . . . . . . . 15 Independent Auditor's Report on the Internal Control Structure used in Administering Federal Financial Assistance Programs . . . . . . . . . . . . . . . . . . . 17 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs . . . . . . . . . . 20 Independent Auditor's Report on Compliance with General Requirements . . . . . . . . . . . . . . . . 22 DOHERTY, BEALS & BANKS. P. C. DOHERTY. BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS CARL A. BANKS. CPA STEPHEN R. DOHERTY. CPA 187 WILLIAMS STREET STACEY L. GUALTIERI. CPA POST OFFICE BOX 59 KAREN A. NAGEL. CPA !2031 443-2033 KATHLEEN A. STEAMER. CPA NEW LONDON. CONNECTICUT 06320 FAX 12031 444-7086 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 December 31, 1994, and 1993, 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, 1994, and 1993, 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 Awards 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. I DOHERT , BEALS & BANKS, P.C. May 9, 1995 - 1 - FISHERS ISLAND FERRY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 1994 AND 1993 ASSETS 1994 1993 CURRENT ASSETS Cash equivalents (note 2) $ 376,394 $ 394,429 Cash in banks 67,997 175,341 Imprest funds 1,450 1,450 Special cash deposits 1,409 46,143 TOTAL CASH AND CASH EQUIVALENTS 447,250 617,363 Traffic and car prepayments 14,060 7,382 Prepaid expenses 44,982 44,762 Grants receivable 114,179 TOTAL CURRENT ASSETS 620,471 669,507 PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment (note 3) 6,634,942 5,075,038 Less: accumulated depreciation (1,979,753) 11,726,5051 TOTAL PROPERTY, PLANT AND EQUIPMENT 4,655,189 3,348,533 OTHER ASSETS Property held for future use 634,068 634,068 TOTAL ASSETS $5,9� $4,652,108 LIABILITIES AND FOND BALANCE CURRENT LIABILITIES Current portion bonds payable $ 61,836 $ 61,760 Accounts payable 137,314 89,738 Retirement credits -- 1,065 Estimated liability for compensated absenses 94,554 121,304 TOTAL CURRENT LIABILITIES 293,704 273,867 LONG-TERM LIABILITIES Bonds payable (net of current portion above)(note 4) 366,294 428,130 TOTAL LIABILITIES 659,998 701,997 FUND BALANCE (page 4) 5,249,730 3,950,111 TOTAL LIABILITIES AND FUND BALANCE $5,909,728 $4,652,108 See notes to ffnancfal statements. - 2 - DOHERTY. BEALS Q BANKS. P.,C. FISHERS ISLAND PERRY DISTRICT STATEMENTS OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 OPERATING REVENUE Ferry service revenue $ 958,052 $ 859,649 Charter service 43,841 50,498 Mail revenue 14,500 16,032 Miscellaneous voyage revenue 17,564 14,322 TOTAL OPERATING REVENUE 1,033,957 940,501 OPERATING EXPENSES Building and equipment maintenance 26,049 17,055 Clerical salaries 40,920 40,477 Commissioners' and manager's salaries 71,366 70,438 Crew and purser salaries 450,922 442,821 Fuels and lubricants 84,431 80,080 Grounds maintenance -- 35,000 Insurance expense 156,170 158,930 Legal and accounting 5,515 12,750 Local transfers 3,349 4,475 Office supplies 5,152 7,273 Other terminal expense 775 855 Payroll taxes 34,899 40,212 Property taxes 9,417 9,398 Retirement payments -- 27,434 Stationery and printing 3,158 7,001 Supplies 22,440 19,872 Utilities 11,367 11,153 Vessel maintenance (net of insurance claim of $-0- in 1994 and $59,704 in 1993) 53,079 121.938 TOTAL OPERATING EXPENSES 979.009 1.107,162 EXCESS (DEFICIT) OF REVENUES OVER EXPENSES FROM VESSEL OPERATIONS BEFORE DEPRECIATION 54,948 (166,661) Less: depreciation (147,0851 (129,2601 EXCESS (DEFICIT) OF REVENUES OVER EXPENSES FROM VESSEL OPERATIONS (92,137) (295,921) OTHER REVENUE AND EXPENSES Property tax revenue 200,000 150,000 Interest income 15,842 18,325 Grant revenue (note 5) 1,274,118 104,403 Theater revenue (deficit) (net)(page 11) (2,987) 1,107 Airfield deficit (net)(page 11) (122,048) (41,993) Interest expense (37,114) (40,443) Theater donations 63,945 65,961 TOTAL OTHER REVENUE AND EXPENSES 1,391,756 257,360 EXCESS (DEFICIT) REVENUES OVER EXPENSES $1,2619 SS J38.5611 see notes to financial statements. 3 - DOHERTY. BEALS R BANKS. P:C. FISHERS ISLAND FERRY DISTRICT STATEMENTS OF FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 FUND BALANCE - BEGINNING $3,950,111 $3,988,672 EXCESS (DEFICIT) REVENUES OVER EXPENSES (page 3) 1,299,619 (38,5611 FUND BALANCE - ENDING $5,249.730 $3.9513.111 See notes to financial statements. 4 - DOHERTY, BEALS & BANKS, P. C. FISHERS ISLAND FERRY DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 CASH FLOWS FROM OPERATING ACTIVITIES Excess (deficit) revenue over expenses - per page 3 $1,299,619 $ (38,561) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation - operating 147,085 129,260 Depreciation - airfield 106,163 31,749 (Increase) decrease in: Prepaid expenses (6,898) 1,569 Receivables (114,179) 119,542 Increase (decrease) in: Accounts payable 47,576 24,169 Other liabilities (27,815) 8,102 NET CASH PROVIDED BY OPERATING ACTIVITIES 1,451,551 275,830 CASH FLOWS FROM INVESTING ACTIVITIES Improvements to property, plant and equipment (1,559,904) (278,877) CASH FLOWS FROM FINANCING ACTIVITIES Payments on bonds payable (61,760) (60,000) Proceed from new bond issue 24,890 NET CASH USED BY FINANCING ACTIVITIES (61,760) (35,110) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (170,113) (38,157) CASH AND CASH EQUIVALENTS - BEGINNING 617,363 655,520 CASH AND CASH EQUIVALENTS - ENDING S 447A2 S 6® See notes to financial statements. 5 DOHERTY, BEALS & BANKS. P. C. I FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 -1 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. 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, 1994, and 1993, is $253,248 and $161,009 respectively. 2. CASH EQUIVALENTS Cash Equivalents as used in the Statement of Cash Flows (page 5) are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash. The Fishers Island Ferry District maintains an account with MBIA - Municipal Investors Service Corp. Balances in this account are not insured. 6 - DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 (PAGE 2) 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following classes of assets: 1994 1993 Land $ 41,717 $ 41,717 Docks and dolphins 775,552 775,552 Vessel - Munnatauket 904,357 904,357 Vessel - Race Point 1,485,382 1,485,382 Buildings and improvements 3,072,116 1,565,383 Terminal expansion 264,935, 215,065 Office equipment 63,108 59,807 Terminal equipment 27,775 27,775 TOTAL COST $6,634,942 55,075.038 4. BONDS PAYABLE 1994 1993 Munnatacket Debt Service: Serial Bonds maturing and payable annually with interest at 5.98 per annum. Net book value of the Munnatacket is $378,509. $ 105,000 $ 140,000 Race Point Debt Service: Serial Bonds maturing and payable annually with interest at 9.18 per annum. Net book value of the Race Point is $950,083. 300,000 325,000 Pension System Serial Bonds: Serial Bonds maturing and payable annually with interest at 88 per annum. 23,130 24,890 TOTAL BONDS PAYABLE 42 � SS 489,89900 7 DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 (PAGE 3) 4. BONDS PAYABLE (Continued) The following are the maturities of bonds payable for each of the next five years. 1995 $ 61,836 1996 61,836 1997 61,836 1998 26,836 1999 26,836 Thereafter 188.950 $ 428,130 5. GRANT REVENUE 1994 1993 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 $1,205,206 $ 104,403 New York State Department of Transportation Grant The Fishers Island Ferry District received funds from the New York State Department of Transportation for the airport layout plan. Grant Amount 68.912 TOTAL GRANT REVENUE s1.2� S 10 .6403� 8 - DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 (PAGE 4) 6. PENSION The Fishers Island Ferry District participates in the New York State Employees Retirement System, a defined benefit plan. This is a cost sharing multiple public employer retirement system that covers substantially all of the Ferry District's employees. The system offers a wide range of plans and benefits which are related to years of service and final average salary, vesting of retirement benefits, death and disability benefits and optional methods of benefit payments. On April 1, 1994, the actuarial funding method used to compute the actuarially determined employer contribution requirements was changed to the aggregate cost funding method (from the modified projected unit credit funding method) using a four year phase-in. Generally, participating employers that have adopted the same benefit plans contribute at the same rate of payroll. The Fishers Island Ferry District's pension expense for the years ended December 31, 1994, and 1993, is $ -0- and $27,434 respectively. As of March 31, 1994, (the latest date for which audited information is available) the net assets available for benefits exceeded the pension benefit obligation by $956 million for the New York Employees' Retirement System as a whole as follows: Employees' Pension benefit obligation: Retirement Retirees and beneficiaries currently receiving System benefits, inactive members entitled to (Millions) benefits not yet receiving benefits and inactive members not vested $ 18,419 Current employees: Accumulated employee contributions including allocated investment income 2,463 Employer-financed vesting 25,275 Employer-financed nonvested 3,722 Total pension benefit obligation 49,879 Net assets available for benefits 50.835 Assets in excess of the pension benefit obligation ��956 9 - DOHERTY, BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 (PAGE 5) 7. SUPPLEMENTAL CASH FLOW INFORMATION Interest expense paid during the years ending December 31, 1994, and 1993, was $37,114 and $40,443 respectively. 8. RECLASSIFICATIONS In prior years, cash equivalents were included with cash in banks and property held for future use was included with property, plant, and equipment. 10 - DOHERTY, BEALS & BANKS, P. C. i FISHERS ISLAND FERRY DISTRICT i THEATER AND AIRFIELD SCHEDULES OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 1994 1993 THEATER OPERATION THEATER REVENUE $ 16,852 $ 18,147 THEATER EXPENSES Film rental 8,138 8,043 Payroll 4,977 5,005 Utilities 1,465 1,496 Repairs and maintenance 2,577 966 Miscellaneous 2,682 1,530 TOTAL EXPENSES 19,839 17.040 THEATER REVENUE (DEFICIT) (Net) S (2,987) $1,107 AIRFIELD OPERATION AIRFIELD REVENUE $ 2,275 $ 5,042 AIRFIELD EXPENSES Repairs and maintenance 13,097 9,411 Insurance 3,675 3,700 Utilities 1,388 2,175 Depreciation 106,163 31,749 TOTAL EXPENSES 124,323 47,035 AIRFIELD REVENUE (DEFICIT) (Net) S (122,048) S (41,993) See notes to financial statements. DOHERTY. BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT SCHEDULE OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 1994 Federal 1994 Grant Disbursements/ Number Expenditures PROGRAM TITLE Major Programs Department of Transportations Airport Improvement Program 20-106 $1,205,206 See notes to financial statements. - 12 - DOHERTY, BEALS & BANKS. P. C.