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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
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' 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
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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
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Schedule of Expenditures of Federal Awards................................................................................................................3
' Notes to the Schedule of Expenditures
ofFederal Awards......................................................................................................................................................4
Schedule of Findings and Questioned Costs..................................................................................................................5
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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.
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' 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.
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DOH BEALS&BANKS P.C.
May 29,2008
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' 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.
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' DOHERTY,BEALS&BANKS,P.C.
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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
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' 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.
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' DOHERTY,BEALS&BANKS,P.C.
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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
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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.
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' 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.
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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
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' DOHERTY,BEALS&BANKS,P.C.