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Home My WebLink About1998 & 1997 FIFD =a FISHERS ISLAND FERRY DISTRICT R- FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 = f OHERTY s- EALS 8c AN KS, P. C. CERTIFIED PUBLIC ACCOUNTANTS FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 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 POST OFFICE BOX 59 NEW LONDON, CONNECTICUT 06320 CARL A. BANKS. CPA 18601 443-2033 STACEY L.GUALTIERI. CPA FAX 18601 444-7086 KAREN A. NAGEL. CPA KATHLEEN A. STEAMER. CPA EVELYN M. COOKE. CPA 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, 1998, and 1997, 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, 1998, and 1997, 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. DOHERTtJ, BEALS & BANKS, P.C. May 3, 1999 - 1 - FISHERS ISLAND FERRY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 1998 AND 1997 ASSETS CURRENT ASSETS 1998 1997 Cash equivalents (note 1) $ 666,613 $ 586,835 Cash in banks 28,992 13,390 Imprest funds 1,450 1,450 Special cash deposits 2,351 9,735 Total Cash And Cash Equivalents 699,406 611,410 Traffic and car receivable 21,149 19,956 Prepaid expenses 27,813 32,092 TOTAL CURRENT ASSETS 748,368 663,458 PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment (note 2) 7,566,746 7,508,431 Less: accumulated depreciation (2,973,803) (2,741,265) NET PROPERTY, PLANT AND EQUIPMENT 4,592,943 4,767,166 TOTAL ASSETS $5,341,311 $5,430,624 LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Current portion bonds payable $ 26,836 $ 26,836 Accounts payable 69,698 18,083 Estimated liability for compensated absences 150,447 172,004 TOTAL CURRENT LIABILITIES 246,981 216,923 LONG-TERM LIABILITIES Bonds payable (net of current portion above) (note 3) 188,955 215,791 TOTAL LIABILITIES 435,936 432,714 FUND BALANCE (page 4) 4,905,375 4,997,910 TOTAL LIABILITIES AND FUND BALANCE $5,341,311 $5,430, 624 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, 1998 AND 1997 OPERATING REVENUE 1998 1997 Ferry service revenue $1,001,743 $1,011,192 Charter service 28,416 46,916 Mail revenue 17,995 15,956 Rental income 12,175 10,666 TOTAL OPERATING REVENUE 1,060,329 1,084,730 OPERATING EXPENSES Clerical salaries 47,149 45,853 Commissioners' and manager's salaries 88,370 81,667 Crew and purser salaries 558,428 542,736 Fuels and lubricants 66,691 92,790 Insurance expense 143,358 149,266 Legal and accounting 6,000 6,300 Local transfers 5,100 4,800 Office supplies 4,583 5,726 Payroll taxes 52,241 49,128 Property taxes 9,452 9,294 Repairs and maintenance 103,506 114,311 Retirement payments 5,353 6,309 Stationery and printing 3,730 2,124 Terminal expense 25,689 30,401 Utilities 8,701 13,102 TOTAL OPERATING EXPENSES 1,128,351 1,153,807 DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS BEFORE DEPRECIATION (68,022) (69,077) Less: depreciation (159,837) (159,630) DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS (227,859) (228,707) OTHER REVENUE AND EXPENSES Property tax revenue 220,110 220,139 Interest income 33,985 32,368 Grant revenue 3,891 -- Theater deficit (net) (page 9) (15,835) (14,004) Airfield deficit (net) (page 9) (86,290) (79,358) Interest expense (20,537) (23,955) TOTAL OTHER REVENUE AND EXPENSES 135,324 135,190 DEFICIT OF REVENUE OVER EXPENSES S (92,535) $ (93,517) 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, 1998 AND 1997 1998 1997 FUND BALANCE - BEGINNING $4,997,910 $5,091,427 DEFICIT OF REVENUE OVER EXPENSES (page 3) (92,535) (93,517) FUND BALANCE - ENDING $4,905,375 $4,997,910 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, 1998 AND 1997 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Deficit of revenue over expenses - per page 3 $ (92,535) $ (93,517) Adjustments to reconcile deficit of revenue over expenses to net cash provided by operating activities: Depreciation - operating 159,837 159,630 Depreciation - theater/airfield 89,538 89,143 (Increase) decrease in: Prepaid expenses 4,279 (813) Receivables (1,193) 8,502 Increase (decrease) in: Accounts payable 51,615 (67,967) Estimated liability for compensated absences (21,557) 24,749 Deferred property tax revenue -- (13,665) NET CASH PROVIDED BY OPERATING ACTIVITIES 189,984 106,062 CASH FLOWS FROM INVESTING ACTIVITIES Improvements to property, plant and equipment (75,152) (121,140) CASH FLOWS FROM FINANCING ACTIVITIES Payments on bonds payable (26,836) (61,837) NET CHANGE IN CASH AND CASH EQUIVALENTS 87,996 (76,915) CASH AND CASH EQUIVALENTS - BEGINNING 611,410 688,325 CASH AND CASH EQUIVALENTS - ENDING $ 699,406 $ 611,410 See notes to financial statements. 5 - DOHERTY. BEALS & BANKS. P. C. I FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 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, 1998, and 1997, is $249,375 and $248, 773, 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 $10, 756 is not insured. An investment account is also maintained with Fleet Bank and consists of a short-term Treasury Portfolio. The balance of $655,858 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, 1998 AND 1997 2. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following classes of assets: 1998 1997 Land $ 41, 717 $ 41, 717 Docks and dolphins 985,363 985,363 Vessel - Munnatauket 904, 357 904,357 Vessel - Race Point 1,485,382 1,485,382 Buildings and improvements 3, 702,407 3,663,329 Terminal expansion 369,691 338,309 Office equipment 50, 054 62,199 Terminal equipment 27, 775 27, 775 TOTAL PROPERTY, PLANT AND EQUIPMENT $7, 566, 746 $7, 508,431 3. BONDS PAYABLE 1998 1997 Race Point Debt Service Serial Bonds maturing and payable annually with interest at 9.19. per annum. Net book value of the Race Point is $809,890. $ 200, 000 $ 225, 000 Pension System Serial Bonds Serial Bonds maturing and payable annually with interest at 8% per annum. 15, 791 17,627 TOTAL BONDS PAYABLE $ 215,791 $ 242, 627 The following are the maturities of bonds payable for each of the next five years. 1999 $ 26, 836 2000 26, 836 2001 31,836 2002 31,836 2003 31, 836 Thereafter 66,611 $ 215, 791 7 - DOHERTY, BEALS & BANKS, P. C. I =y FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 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, 1998, and 1997, is $5, 353 and $6, 309 respectively. Additional required disclosure information is unavailable at this time. 5. SUPPLEMENTAL CASH FLOW INFORMATION Interest paid during the years ending December 31, 1998, and 1997, was $20, 537 and $23, 955 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, 1998 AND 1997 1998 1997 THEATER OPERATION THEATER REVENUE $ 14,709 $ 14,310 THEATER EXPENSES Film rental 6,782 6,902 Payroll 4,881 3,548 Utilities 4,591 3,494 Repairs and maintenance 3,256 3,336 Depreciation 11,034 11,034 TOTAL EXPENSES 30,544 28,314 THEATER DEFICIT $ (15,835) $ (14,004) AIRFIELD REVENUE $ 10,772 $ 7,725 AIRFIELD EXPENSES Repairs and maintenance 13,534 4,337 Insurance 3,000 3,000 Utilities 2,024 1,637 Depreciation 78,504 78,109 TOTAL EXPENSES 97,062 87,083 AIRFIELD DEFICIT $ (86,290) $ (79,358) See notes to financial statements. 9 - DOHERTY. BEALS & BANKS. P. C.