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Home My WebLink About1997 & 1996 FIFD B , R _ TOWN OF SOUTHOLD ACCOUNTING&FINANCE DEPT FISHERS ISLAND FERRY DISTRICT i `. FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 OH ERTY EALS 8c AN KS, P. C. CERTIFIED PUBLIC ACCOUNTANTS FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DOHERTY, BEALS & BANKS, P. C. DOHERTY, BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 187 WILLIAMS STREET CARL A. BANKS,CPA POST OFFICE BOX 59 STEPHEN R. DOHERTY,CPA NEW LONDON,CONNECTICUT 06320 STACEY L.GUALTIERI,CPA KAREN A. NAGEL,CPA KATHLEEN A.STEAMER,CPA (860)443-2033 EVELYN M.COOKE,CPA FAX(860)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, 1997, and 1996, 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. 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, 1997, and 1996, 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 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. DOHERTY, BEALS & BANKS, P.C. April 29, 1998 - 1 - FISHERS ISLAND FERRY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 1997 AND 1996 ASSETS 1997 1996 CURRENT ASSETS Cash equivalents (note 1) $ 586,835 $ 624,950 Cash in banks 13,390 56,796 Imprest funds 1,450 1,450 Special cash deposits 9,735 5,129 Total Cash And Cash Equivalents 611,410 688,325 Traffic and car receivable 19,956 21,890 Grants receivable -- 6,568 Prepaid expenses 32,092 31,279 TOTAL CURRENT ASSETS 663,458 748,062 PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment (note 2) 6,874,363 6,753,223 Less: accumulated depreciation (2,741,265) (2,492,492) NET PROPERTY, PLANT AND EQUIPMENT 4,133,098 4,260,731 OTHER ASSETS Property held for future use 634,068 634,068 TOTAL ASSETS $5,430,624 $5,642,861 LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Current portion bonds payable $ 26,836 $ 61,836 Accounts payable 18,083 86,050 Estimated liability for compensated absences 172,004 147,255 Deferred property tax revenue -- 13,665 TOTAL CURRENT LIABILITIES 216,923 308,806 LONG-TERM LIABILITIES Bonds payable (net of current portion above) (note 3) 215,791 242,628 TOTAL LIABILITIES 432,714 551,434 FUND BALANCE (page 4) 4,997,910 5,091,427 TOTAL LIABILITIES AND FUND BALANCE $5,430,624 $55,642861 See notes to financial statements. 2 - DOHERTY, BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT STATEMENTS OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 1997 1996 OPERATING REVENUE Ferry service revenue $ 992,845 $ 964,402 Charter service 46,916 46,307 Mail revenue 15,956 15,932 Miscellaneous voyage revenue 18,347 18,575 Rental income 10,666 14,081 TOTAL OPERATING REVENUE 1,084,730 1,059,297 OPERATING EXPENSES Clerical salaries 45,853 43,805 Commissioners' and manager's salaries 81,667 80,967 Crew and purser salaries 542,736 540,792 Fuels and lubricants 92,790 96,346 Insurance expense 149,266 143,324 Legal and accounting 6,300 51900 Local transfers 4,800 4,800 Office supplies 5,726 4,523 Other terminal expense 5,429 12,128 Payroll taxes 49,128 49,092 Property taxes 9,294 9,638 Repairs and maintenance 114,311 89,980 Retirement payments 6,309 11,476 Stationery and printing 2,124 1,393 Supplies 24,972 25,695 Utilities 13,102 10,817 TOTAL OPERATING EXPENSES 1,153,807 1,130,676 DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS BEFORE DEPRECIATION (69,077) (71,379) Less: depreciation (159,630) (141,294) DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS (228,707) (212,673) OTHER REVENUE AND EXPENSES Property tax revenue 220,139 220,000 Interest income 32,368 34,069 Grant revenue -- 10,382 Theater deficit (net) (page 8) (14,004) (12,949) Airfield deficit (net) (page 8) (79,358) (157,668) Interest expense (23,955) (28,274) Theater donations 7,400 TOTAL OTHER REVENUE AND EXPENSES 135,190 72,960 DEFICIT OF REVENUE OVER EXPENSES S (93,517) S (139,713) See notes to financial statements. 3 - DOHERTY, BEALS & BANKS. P. C. FISHERS ISLAND FERRY DISTRICT STATEMENTS OF FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 1997 1996 FUND BALANCE - BEGINNING $5,091,427 $5,231,140 DEFICIT OF REVENUE OVER EXPENSES (page 3) (93,517) (139,713) FUND BALANCE - ENDING $4,997,910 $5,091,427 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, 1997 AND 1996 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Deficit of revenue over expenses - per page 3 $ (93,517) $ (139,713) Adjustments to reconcile deficit of revenue over expenses to net cash provided by operating activities: Depreciation - operating 159,630 141,294 Depreciation - theater/airfield 89,143 144,630 (Increase) decrease in: Prepaid expenses (813) 12,630 Receivables 8,502 (12,405) Increase (decrease) in: Accounts payable (67,967) 30,899 Estimated liability for compensated absences 24,749 (2,286) Deferred property tax revenue (13,665) 13,665 NET CASH PROVIDED BY OPERATING ACTIVITIES 106,062 188,714 CASH FLOWS FROM INVESTING ACTIVITIES Improvements to property, plant and equipment (121,140) (141,653) CASH FLOWS FROM FINANCING ACTIVITIES Payments on bonds payable (61,837) (61,836) NET DECREASE IN CASH AND CASH EQUIVALENTS (76,915) (14,775) CASH AND CASH EQUIVALENTS - BEGINNING 688,325 703,100 CASH AND CASH EQUIVALENTS - ENDING $ 611,410 g_688,325 See notes to financial statements. 5 - DOHERTY, BEALS& BANKS, P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Fishers Island Ferry District operates through the Town of Southold as an organization exempt from income tax. It is a component unit of the Town of Southold. 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, 1997, and 1996, is $248, 773 and $285,924, respectively. 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 investment account with MBIA - Municipal Investors Service Corp. The balance of $16, 187 is not insured. An investment account is also maintained with Fleet Bank and consists of a short-term Treasury Portfolio. The balance of $570,648 is not insured. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and revenue and expenses during the reporting period. Actual results could differ from those estimates. - 6 - DOHERTY, BEALS& BANKS, P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 2. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following classes of assets: 1997 1996 Land $ 41, 717 $ 41,717 Docks and dolphins 985,363 884, 751 Vessel - Munnatauket 904,357 904,357 Vessel - Race Point 1,485,382 1,485,382 Buildings and improvements 3,029,261 3,029,261 Terminal expansion 338,309 317, 781 Office equipment 62,199 62,199 Terminal equipment 27,775 27,775 TOTAL PROPERTY, PLANT AND EQUIPMENT $6,874,363 $6,753,223 3. BONDS PAYABLE 1997 1996 Munnatawket Debt Service Serial Bonds maturing and payable annually with interest at 5.9% per annum. Net book value of the Munnatawket is $308,881. $ -- $ 35,000 Race Point Debt Service Serial Bonds maturing and payable annually with interest at 9.1W per annum. Net book value of the Race Point is $809,890. 225, 000 250, 000 Pension System Serial Bonds Serial Bonds maturing and payable annually with interest at 8W per annum. 17,627 19,464 TOTAL BONDS PAYABLE $ 242,627 $ 304,464 The following are the maturities of bonds payable for each of the next five years. 1998 $ 26,836 1999 26,836 2000 26,836 2001 26,836 2002 26,836 Thereafter 108,447 $ 242,627 7 - DOHERTY, BEALS& BANKS, P. C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 4. 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. The Fishers Island Ferry District's pension expense for the years ended December 31, 1997, and 1996, is $6,309 and $11,476 respectively. Additional required disclosure information is unavailable at this time. S. SUPPLEMENTAL CASH FLOW INFORMATION Interest expense paid during the years ending December 31, 1997, and 1996, was $23, 955 and $28,274 respectively. 8 - DOHERTY, BEALS & BANKS, P. C. FISHERS ISLAND FERRY DISTRICT THEATER AND AIRFIELD SCHEDULES OF REVENUE AND EXPENSES FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 1997 1996 I THEATER OPERATION THEATER REVENUE $ 14,310 $ 15,036 THEATER EXPENSES Film rental 6,902 7,984 Payroll 3,548 4,373 Utilities 3,494 2,452 Repairs and maintenance 2,058 1,849 Miscellaneous 1,278 1,033 Depreciation 11,034 10,294 TOTAL EXPENSES 28,314 27,985 THEATER DEFICIT $ (14,004) $ (12,949) AIRFIELD OPERATION AIRFIELD REVENUE $ 7,725 $ -- AIRFIELD EXPENSES Repairs and maintenance 1,475 17,399 Insurance 3,000 3,675 utilities 1,637 2,258 Miscellaneous 2,862 -- Depreciation 78,109 134,336 TOTAL EXPENSES 87,083 157,668 AIRFIELD DEFICIT $ (79,358) $ (157,668) See notes to financial statements. 9 - DOHERTY, BEALS& BANKS, P. C.