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HomeMy WebLinkAbout2007 FIFD (2) 1 1 FISHERS ISLAND FERRY DISTRICT ' A COMPONENT UNIT OF THE TOWN OF SOUTHOLD ' SUPPLEMENTAL FINANCIAL REPORTS IN ACCORDANCE WITH THE OMB CIRCULAR A-133 ' DECEMBER 31,2007 OH ERTY EA LS 8� AN KS, P.C. CERTIFIED PUBLIC ' ACCOUNTANTS 1 1 1 ' FISHERS ISLAND FERRY DISTRICT A COMPONENT UNIT OF THE TOWN OF SOUTHOLD ' SUPPLEMENTAL FINANCIAL REPORTS IN ACCORDANCE WITH THE OMB CIRCULAR A-133 tDECEMBER 31, 2007 1 CONTENTS Report on Compliance with Requirements Applicable to each Major Program and on Internal Control ' over Compliance in Accordance with OMB Circular A-133, and on the Schedule of Expenditures ofFederal Awards......................................................................................................................................................1 1 Schedule of Expenditures of Federal Awards................................................................................................................3 ' Notes to the Schedule of Expenditures ofFederal Awards......................................................................................................................................................4 Schedule of Findings and Questioned Costs..................................................................................................................5 1 Report on Internal Control Over Financial Reporting ' and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards....................................................................................................7 ' DOHERTY,BEALS&BANKS,P.C. ' DOHERTY, BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 187 WILLIAMS STREET POST OFFICE BOX 59 CARL A.BANKS,CPA (860)443-2033 NEW LONDON,CONNECTICUT 06320 ' STACEY L.GUALTIERI,CPA FAX(860)444-7086 KATHLEEN A.STEAMER,CPA WWW.DBBCPA.COM DAVID J.MICELI,CPA Board of Commissioners ' Fishers Island Ferry District Fishers Island,NY 06390 ' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133,AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ' Compliance We have audited the compliance of the Fishers Island Ferry District,(a component unit of the Town of Southold),with ' the types of compliance requirements described in the U.S. Office of Management and Budget(OMB)Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31,2007. The Fishers Island Ferry District's major federal programs are identified in the summary of auditors'results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Fishers Island Ferry District's management. Our responsibility is to express an opinion on the Fishers Island Ferry District's compliance ' based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the ' Comptroller General of the United States;and OMB Circular A-I33,Audits of States, Local Governments, and Non- profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that ' could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,evidence about the Fishers Island Ferry District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Fishers Island Ferry District's compliance with ' those requirements. In our opinion,the Fishers Island Ferry District complied,in all material respects,with the requirements referred to above ' that are applicable to each of its major federal programs for the year ended December 31, 2007. 1 ' - 1 - ' Internal Control Over Compliance The management of the Fishers Island Ferry District is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws,regulations,contracts and grants applicable to federal programs. In planning and performing our audit,we considered the Fishers Island Ferry District's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance,but not for the purpose of expressing an ' opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Fishers Island Ferry District's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does ' not allow management or employees,in the normal course of performing their assigned functions,to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency,or combination of significant deficiencies,that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or ' material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. ' Schedule of Expenditures of Federal Awards We have audited the basic financial statements of the Fishers Island Ferry District as of and for the year ended December ' 31,2007,and have issued our report thereon dated May 29,2008. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of ' the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. ' This report is intended solely for the information and use of the management,Board of Commissioners,and cognizant audit agencies and is not intended to be and should not be used by anyone other than these specified parties. t DOH BEALS&BANKS P.C. May 29,2008 -2 - ' DOHERTY,BEALS&BANKS,P.C. FISHERS ISLAND FERRY DISTRICT ' A COMPONENT UNIT OF THE TOWN OF SOUTHOLD SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31,2007 ' Federal Grantor Federal Pass-Through Pass-through Grantor CFDA Grantor's Federal ' Program Title Number Number Expenditures U.S.Department of Transportation Direct: Airport Improvement Program 20.106 N/A $ 915,442 U.S.Department of Homeland Security ' Pass through New York Department of Transportation Urban Areas Security Initiative Project 504—New London Project 97.008 N/A 192,320 ' TOTAL EXPENDITURES OF FEDERAL AWARDS S 1,107.762 See notes to schedule. -3 - ' DOHERTY,BEALS&BANKS,P.C. s _ 1 FISHERS ISLAND FERRY DISTRICT ' A COMPONENT UNIT OF THE TOWN OF SOUTHOLD NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31,2007 1 ' BASIS OF PRESENTATION ' The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Fishers Island Ferry District, a component unit of the Town of Southold, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. -4- ' DOHERTY,BEALS&BANKS,P.C. r FISHERS ISLAND FERRY DISTRICT r A COMPONENT UNIT OF THE TOWN OF SOUTHOLD SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31,2007 r SECTION I- Summary of Auditor's Results rFinancial Statements rType of auditor's report issued: unqualified Internal control over financial reporting: rMaterial weakness(es) identified? —yes X none reported Significant defiency(ies) identified that are rnot considered to be material weaknesses? yes X none reported Noncompliance material to financial statements rnoted? _yes X no Federal Awards rInternal control over major programs: rMaterial weakness(es) identified? yes X no Significant defiency(ies) identified that are rnot considered to be material weakness(es)? yes X none reported Type of auditor's report issued on compliance for major programs: unqualified rAny audit findings disclosed that are required to be reported in accordance with section 510(a) rof Circular A-133? _yes X no r Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster r20.106 Airport Improvement Program rDollar threshold used to distinguish between type A and type B programs: $500,000.00 rAuditee qualified as low-risk auditee? X yes _no r -5 - rDOHERTY,BEALS&BANKS,P.C. FISHERS ISLAND FERRY DISTRICT ' A COMPONENT UNIT OF THE TOWN OF SOUTHOLD SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31,2007 SECTION II-Financial Statement Findings No findings or questioned costs are reported. SECTION III-Federal Award Findings and Questioned Costs No findings or questioned costs are reported. 1 1 1 -6 - ' DOHERTY,BEALS&BANKS,P.C. DOHERTY, BEALS & BANKS, P.C. CERTIFIED PUBLIC ACCOUNTANTS ' 187 WILLIAMS STREET CARL A.BANKS,CPA POST OFFICE BOX 59 (860)443-2033 NEW LONDON,CONNECTICUT 06320 ' STACEY L.GUALT[ERI,CPA FAX(860)444-7086 KATHLEEN A.STEAMER,CPA WWW.DBBCPA.COM DAVID J.MICELI,CPA ' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS 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, (a component unit of the Town of Southold),as of and for the year ended December 31,2007,and have issued our report thereon dated May 29,2008. We ' conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. ' Internal Control over Financial Reporting In planning and performing our audit,we considered the Fishers Island Ferry District's internal control over financial ' reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fishers Island Ferry District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the ' normal course of performing their assigned functions,to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency,or combination of control deficiencies,that adversely affects the organization's ability to initiate,authorize,record,process,or report financial data reliably in accordance with generally accepted accounting principles,such that there is more than a remote likelihood that a misstatement of the organization's financial statements ' that is more than inconsequential will not be prevented or detected by the organization's internal control. A material weakness is a significant deficiency, or combination of deficiencies, that results in more than a remote ' likelihood that a material misstatement of the financial statements will not be prevented or detected by the organization's internal control. ' Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. -7- Compliance and Other Matters ' As part of obtaining reasonable assurance about whether the Fishers Island Ferry District's financial statements are free of material misstatement,we performed tests of its compliance with certain provisions of laws,regulations,contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination of financial ' statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards ' This report is intended for the information of the board of commissioners management,and cognizant audita agencies an P g g g d is not intended to be Dand should not be used by anyone other than these specified parties. DOOH'ERi�Y, BEALS &BANKS,P.C. ' May 29, 2008 1 - 8 - ' DOHERTY,BEALS&BANKS,P.C.