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Home My WebLink About2001 & 2000 FIFD � 5 illii ��I FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS mW ° DECEMBER 31, 2001 AND 2000 I ii OHERTNe" ANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS i y FISHERS ISLAND FERRY DISTRICT FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 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 STACEY L.GUALTIERI,CPA NEW LONDON,CONNECTICUT 06320 KATHLEEN A.STEAMER,CPA EVELYN A.COOKE,CPA (860)443-2033 DAVID J.MICELI.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 general-purpose financial statements of the Fishers Island Ferry District as of and for the year ended December 31, 2001, and 2000, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Fishers Island Ferry District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with U.S. 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 general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Fishers Island Ferry District as of December 31, 2001, and 2000, and the results of its operations and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. DOHERTY BEALS & BANKS, P.C. June 5, 2002 - 1 - FISHERS ISLAND FERRY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 2001 AND 2000 ASSETS CURRENT ASSETS 2001 2000 Cash equivalents (note 1) $ 286,447 $ 176,934 Cash in banks 135,198 14,045 Imprest funds 1,450 1,450 Special cash deposits 6,455 742 Total Cash And Cash Equivalents 429,550 193,171 Prepaid expenses 27,126 21,120 Traffic and car receivable 63,389 71,612 Accrued interest receivable 134 TOTAL CURRENT ASSETS 520,065 286,037 PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment (note 2) 9,410,294 9,049,149 Less: accumulated depreciation (3,799,572) (3,502,035) NET PROPERTY, PLANT AND EQUIPMENT 5,610,722 5,547,114 TOTAL ASSETS $6,130,787 ,$5,833,151 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Current portion bonds payable $ 607,203 $ 31,836 Accounts payable 62,634 87,666 Liability for compensated absences 152,746 193,274 Deferred property tax revenue -- 12,929 TOTAL CURRENT LIABILITIES 822,583 325,705 LONG-TERM LIABILITIES Bonds payable (net of current portion above) (note 3) 97,711 130,283 TOTAL LIABILITIES 920,294 455,988 FUND BALANCE (page 4) 5,210,493 5,377,163 TOTAL LIABILITIES AND FUND BALANCE $6,130,787 $5,833,151 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, 2001 AND 2000 OPERATING REVENUE 2001 2000 Ferry service revenue $1,364,627 $1,298,984 Charter service 40,061 25,691 Mail revenue 17,552 17,528 Rental income 26,241 9,699 Miscellaneous income 3,775 TOTAL OPERATING REVENUE 1,452,256 1,351,902 OPERATING EXPENSES Clerical salaries 24,579 23,925 Commissioners' and manager's salaries 85,099 102,146 Crew and purser salaries 680,438 676,275 Fuels and lubricants 136,299 127,158 Insurance expense 150,958 174,194 Legal and accounting 7,300 5,800 Local transfers 5,800 5,100 Office supplies 8,061 7,622 Payroll taxes 61,061 57,237 Property taxes 24,336 24,669 Repairs and maintenance 213,459 128,876 Retirement payments 4,406 2,681 Stationery and printing 2,874 16,494 Terminal expense 20,094 27,047 Utilities 17,375 22,381 TOTAL OPERATING EXPENSES 1,442,139 1,401,605 DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS BEFORE DEPRECIATION 10,117 (49,703) Less: depreciation (206,952) (193,217) DEFICIT OF REVENUE OVER EXPENSES FROM OPERATIONS (196,835) (242,920) OTHER REVENUE AND EXPENSES Property tax revenue 315,101 310,000 Interest income 7,521 19,935 Capital grant revenue -- 640,000 Theater deficit (net) (page 9) (12,153) (17,320) Airfield deficit (net) (page 9) (108,074) (102,758) Interest expense (13,186) (15,796) Terminal expansion administration (159,044) -- TOTAL OTHER REVENUE AND EXPENSES 30,165 834,061 EXCESS (DEFICIT) OF REVENUE OVER EXPENSES {166,670) 591,141 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, 2001 AND 2000 2001 2000 FUND BALANCE - BEGINNING $5,377,163 $4,786,022 EXCESS (DEFICIT) OF REVENUE OVER EXPENSES (page 3) (166,670) 591,141 FUND BALANCE - ENDING $5,210,493 X5,377,163 See notes to financial statements. 4 - DOHERTY, BEALS & BANKS, P.C. I FISHERS ISLAND FERRY DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000 CASH FLOWS FROM OPERATING ACTIVITIES 2001 2000 Excess (deficit) of revenue over expenses - per page 3 $ (166,670) $ 591,141 Adjustments to reconcile deficit of revenue over expenses to net cash provided by operating activities: Depreciation - operating 206,953 193,217 Depreciation - theater/airfield 90,584 90,584 (Increase) decrease in: Prepaid expenses (6,006) 6,746 Receivables 8,357 (38,719) Increase (decrease) in: Accounts payable (25,032) 45,822 Liability for compensated absences (40,527) 10,593 Deferred property tax revenue (12,929) 12,929 NET CASH PROVIDED BY OPERATING ACTIVITIES 54,730 912,313 CASH FLOWS FROM INVESTING ACTIVITIES Improvements to property, plant and equipment (361,145) (1,290,344) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of bonds 575,000 -- Payments on bonds payable (32,206) (26,836) NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 542,794 (26,836) NET CHANGE IN CASH AND CASH EQUIVALENTS 236,379 (404,867) CASH AND CASH EQUIVALENTS - BEGINNING 193,171 598,038 CASH AND CASH EQUIVALENTS - ENDING $ 429,550 $ 193,171 See notes to financial statements. 5 - DOHERTY, BEALS & BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I 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, 2001, and 2000, is $297, 537 and $283, 801, 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 $16,159 is not insured. An investment account is also maintained with Fleet Bank and consists of a short-term Treasury Portfolio. The balance of $270,288 is not insured. Use of Estimates The preparation of financial statements in conformity with U.S. 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, 2001 AND 2000 2. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are recorded at cost and consist of the following classes of assets: 2001 2000 Land $ 41,717 $ 41,717 Docks and dolphins 2,107,994 2,107,994 Vessel - Munnatauket 904, 357 904, 357 Vessel - Race Point 1,485, 382 1,485,382 Buildings and improvements 3,743, 569 3, 743, 569 Terminal expansion 1,029,860 688,301 Office equipment 50, 054 50,054 Terminal equipment 47,360 27,775 TOTAL PROPERTY, PLANT AND EQUIPMENT $9,410,294 $9,049,149 3. BONDS PAYABLE 2001 2000 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 $693,211. $ 120, 000 $ 150,000 Pension System Serial Bonds Serial Bonds maturing and payable annually with interest at 8% per annum. 9, 914 12, 118 New London Wharf Project Serial Bonds maturing and payable annually with interest at 2 .47% per annum. 575,000 -- TOTAL BONDS PAYABLE L_704., 914 $ 162,118 The following are the maturities of bonds payable for each of the next four years. 2002 $ 607,203 2003 32, 571 2004 32,571 2005 32,569 $ 704, 914 7 - DOHERTY, BEALS & BANKS, P.C. FISHERS ISLAND FERRY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 AND 2000 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, 2001, and 2000, is $4,406 and $2,681 respectively. Additional required disclosure information is unavailable at this time. Any liability that may result from a withdrawal from the plan has not been determined. 5. SUPPLEMENTAL CASH FLOW INFORMATION Interest paid during the years ending December 31, 2001, and 2000, was $13,186 and $15,796 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, 2001 AND 2000 2001 2000 THEATER OPERATION THEATER REVENUE $ 16,775 $ 12,616 THEATER EXPENSES Film rental 6,569 6,082 Payroll 5,315 3,500 Utilities 3,693 4,234 Repairs and maintenance 1,234 4,095 Miscellaneous 728 636 Depreciation 11,389 11,389 TOTAL EXPENSES 28, 928 29,936 THEATER DEFICIT $ (12,153) $ (17,320) I I I I AIRFIELD OPERATION AIRFIELD REVENUE $ 10,000 $ 6,301 AIRFIELD EXPENSES Repairs and maintenance 33,801 24,628 Insurance 3,300 3,300 Utilities 1,778 1, 936 Depreciation 79,195 79,195 TOTAL EXPENSES 118,074 109,059 AIRFIELD DEFICIT $ (108,074) $ (102,758) See notes to financial statements. - 9 - DOHERTY, BEALS & BANKS, P.C.