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HomeMy WebLinkAbout1994 1 1 ' TOWN OF SOUTHOLD ' GENERAL PURPOSE FINANCIAL STATEMENTS December 31, 1994 1 1 1 1 REHN & FORE, CPRS FF ]RUP-HN & FORE ertified Public Accounf anf s 286 Main Street • East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 October 31, 1996 Mr. Gerald H. Thurman, CPA Executive Director of Auditing Services Sutfolk County Dept. of Audit and Control 7900 Veterans Memorial Hwy. Hauppauge, New York 11788 Dear Mr Thurman: Enclosed please find several letters which comply with your request of September 18, 1996, relating to the Town of Southold's financial statement and single audit reports for the years ended December 31, 1994 and December 31, 1995. Please accept our apologies for the delay in getting these corrections to you. If we can be of further assistance, do not hesitate to contact us. Sincerely, George R. Rehn, CPA Partner GIZR:aj •. Enclosures cc: John Cushman, Town of Southold OCT 02 '96 14:33 SOUTHOLD TOWN ACCOUNTING P. 1i2 Post4t°Fax Note 7671 °�/O �f6 a�gaS� To r. From yN CoJD69L - Co. L �� I Phone k Pnono a Fax q Fax R TOWN O!' i1 i rtl�, t ACCOUNTING to FJNAtti�E�„ C_ £�•.�' Y OFFICE OF THE COMPTROLLFER JOSEPH R. CAPUTO comrTROLL£R September 18, 1996 Mr.John Cushman Senior Accountant Town of Southold Accounting and Finance Department P.O. Box 1179 Southold,New York 11971-0959 Dear Mr. Cushman: We have recently conducted desk reviews of the Town of Southold's financial statements and single audit reports for the years ended December 31, 1994 and December 31, 1995. We noted the following deficiencies in the 1994 report which require corrective action: 1. The Schedule of Federal Financial Assistance has an incorrect CFDA number for the nutrition program. The number should be 93.045 instead of 13,635. 2. The Auditor's Report on Compliance with the General Requirements was not issued. 3. The Auditor's Report on Internal Controls does not state the definition of a material weakness and whether material weaknesses were found. • 4. The Auditor's Report on Internal Controls over Federal Financial Assistance: Programs does not state the reportable conditions found, and the definition of a material weakness. This report should also be corrected as to the percentage of total federal assistance expended under major programs. The percentage should be 9')% instead of 100%. We noted the following deficiencies in the 1995 report which require corrective action: pEPARTMENT OF: AUDIT AND CONTROL WOODLANDS OFFICE PARK 0 700 VETERANS MEMORIAL HIGHWAY ■ P.O. BOX 6100 ■ HAUPPAUGE, N.Y. 11748-0099 TELEPHONE (516) 863.6039 9 FAX TRA14SMITTAL (516) 853.5057 OCT 02 '96 14:33 SOUTHOLD TOWN ACCOUNTING P.2i2 Town of Southold Page 2 September 18, 1996 1, The two internal control reports do not state whether material weaknesses were noted. 2. The Schedule of Federal Financial Assistance has an incorrect CFDA number for the nutrition program. The number should be 93.045 instead of 13.635. Please contact the CPA firm and request corrective action on these issues and inform us as to when we may expect revised reports. If you have any questions, please contact Jean Trentini, Senior Auditor, at 853-5255. Very truly yours, GHT:df Crerald H. Thurman, CPA Executive Director of Auditing Services c: John J. D'Amico, Chief Auditor Jean Trentini, Senior Auditor TOWN OF SOUTHOLD • SCHEDULE OF FEDERAL FIN,><NCLkL ASSISTA-NCE December 31,1994 FEDERAL FUND FLrND FEDERAL GRVNTORPASS CFDA PROCR\-%( BALANCE REVENUE BAL:L`CE THROUGH GRLNTOR'PRO<;RL\( TITLE NUMBER kmou,,T 111,94 RECOC,NIZED EXPE`iDITLRES 1213 U94 U.S Department of A.cricu?ture Passed through Suffolk County: Cash-Rn-Lieu of Food Aw.uls 10.550 S38,536 50 $38,536 $38,536 SO U.S Department of Health&Human Services Passed throu4i Suffolk County: Nutrition 93.045 $74,442 SO $74,435 S74,435 So U.S Deo:ulment of Housing and Urban Develcrment Passed throuzh Suffolk County: Community Development Block Gram 14.218 S1,583,758 (1) SO S317,741 S317,741 So Federrl Emergency Management Aoene� Passed throudi the State of New York Hurrcar:e Bob 83.516 5456,753 SO S1,083 51,088 SO U.S Department of Transportation Federal Aviation Ad—ministntion Overlay Runways 12-30&7-25 No.3-36-0029-08-93 20.106 51,565,453 SO 51,205,206 S1,205,206 50 (1)Combin_Tion of subgrrnt awards s follows: Contrvt Date Program Year Commenced Amount XIII -1987 1/1,,87 5173,830 XIV -1988 4/118 159,000 Xv -1989 4A189 159,000 XVI -1990 4/U90 156,000 XVII -1991 VIM 183,000 XVIII 4992 5i(l92 288,000 XLY -1993 5/14193 233,928 }LY -1994 511 8i94 231,000 S1,583,758 The above program years are open as of December 31,1994 with the exception of Year XVIII-1992,which closed during 1994. NOTES TO THE FIN,A\C[AL STATEMENTS ARE AIN MTGRAL.PART OF THIS STATEMENT Page 71 U�4. ISHFORE Certified Public Accountants 286 Main Street • East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. We have applied procedures to test the Town of Southold's compliance with the following requirements applicable to federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1994: political activity, Davis- Bacon Act, civil rights, cash management, federal financial reports, allowable costs/cost principles, Drug-free Workplace Act, or administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Goveruarews. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Town of Southold's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to • items not tested, nothing came to our attention that caused us to believe that the Town of Southold had not complied, in all material respects, with those requirements. This report is intended for the information of the audit committee, management and others within the Town of Southold and its granting agencies. However, this report is a matter of public record and the distribution is not limited. Respectfully submitted, Rehn & Fore Certified Public Accountants JT'DTR.HN & FORE fl�. CerCified Public Accoun>Lan>Ls 286 Main Street • East Setauket • New York 11733-2844 • 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Town Board Town of Southold 53095 Main Road Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. We conducted our audit in accordance with generally accepted auditing standards, Government AUditing Standards, issued by the Comptroller General of the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Town of Southold, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Town of Southold, New York, for the year ended December 31, 1994, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Town Board, Town of Southold August 4, 1995 Page 2. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, and other within the Town of Southold and its granting agencies. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record. Respectfully submitted, Recut & Rehn& Fore Certified Public Accountants � s R ElH N & ]FO[R]E, CPRS REIN & FOIE Cer>Lilied Public Accounfan>Ls 286 Main Street - East Setauket - New York 11733-2844 . 516/751-3886 - Fax 516/751-2740 433 Pulaski Street - Riverhead - New York 11901-3033 - 516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold 53095 Main Road Southold, New York 11971 We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31,1994, and have issued our report thereon dated August 4, 1995. We have also audited the compliance of the Town of Southold with requirements applicable to major federal financial assistance programs and have issued our report hereon dated August 4, 1995. We conducted our audit in accordance with generally accepted auditing standards; Government Auditina Standardsissued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement, and about whethep'the Town of Southold complied with laws and regulations, noncompliance which would be material to a major federal financial assistance program. In planning and performing our audit for the year ended December 31, 1994, we considered the internal control structure of the Town of Southold, in order to determine our auditing procedures for the purpose of expressing our opinion on the Town of Southold's general purpose financial statements, with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 4, 1995. Town Board, Town of Southold August 4, 1995 Page 2. The Management of the Town of Southold, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that the federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Cash Receipts, Purchasing, Accounts Payable, Cash Disbursements, Payroll, Property and Equipment, General Ledger, and External Financial Reporting. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1994, the Town of Southold expended 93 percent of its total federal financial assistance under major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness or tlta ounign and operation At internnI control i.orm t«re polkshos and procedures that %ye have considered relevant to preventing or detecting; material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and' amounts claimed or used for matching; that are applicable. Our procedures were less an scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. R EIH N &- FORE, CP--ks Town Board, Town of Southold August 4, 1995 Page 3. Our consideration of the internal control structure policies and procedures used in administering federal awards would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relative low level the risk that noncompliance with laws and regulations that would be material to a federal award program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the audit committee, management, and others within the Town of Southold and its granting agencies. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record. Respectfully submitted, Rd* & 5;e Rehn & Fore Certified Public Accountants RF:aj REHN & FORE Certified Public Accountants ' -] 286 Main Street • East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT Town Board ' Town of Southold 53095 Main Road Southold,New York 11971 ' Members of the Board: ' We have audited the accompanying general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994. These general purpose financial statements are the ' responsibility of the Town of Southold'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 generally accepted accounting standards. Those standards require that we perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a ' test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement ' preparation. 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 Town of Southold as of December 31, 1994, and the results of its operations and changes in fund balances for the year then ended in conformity with ' generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial ' statements taken as a whole. The combining,individual fund,and individual account group financial statements and schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the ' Town of Southold. Such information has been subjected to the auditing procedures applied in the audit of general purpose financial statements, and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. Rd* & lone ' Relul & Fore Certified Public Accountants REHN & FORE Certified Public Accounfanfs ' 286 Main Street • East Setauket • New York 11733-2844 • 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 August 4, 1995 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF ' GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' Town Board Town of Southold 53095 Main Road Southold,New York 11971 ' Members of the Board: We have audited the general purpose financial statements of the Town of Southold,New York, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. We conducted our audit in accordance with generally accepted accounting standards and Government Audiling Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations,contracts, and grants applicable to the Town of Southold,New York, is the responsibility of the Town of Southold,New York's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Town of Southold,New York's compliance with certain provisions of laws, 1 regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. .' Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported 1 under Government Auditing Standards. This report is intended for the information of the audit committee, management and others within the Town of Southold and its granting agencies. However, this report is a matter of public record and its distribution is not limited. Rehn & Fore Certified Public Accountants REHN & FORE 1 Certified public Accountants ' 286 Main Street• East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 August 4, 1995 t INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH ' GOVERNMENT AUDITING STANDARDS Town Board ' Town of Southold 53095 Main Road Southold,New York 11971 ' Members of the Board: ' We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. ' We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards,issued by the Comptroller General of the United States. These standards require ' that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. ' The management of the Town of Southold, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and ' procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss form unauthorized use or disposition, and that transactions are executed in accordance with management's authorization ' and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any ' evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Town of ' Southold,New York, for the year ended December 31, 1994, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed ' in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. REHN & FORE Certified Public Accountants ' 286 Main Street - East Setauket - New York 11733-2844 . 516/751-3886 - Fax 516/751-2740 433 Pulaski Street - Riverhead - New York 11901-3033 - 516/727-3350 ' August 4, 1995 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL ' STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' Town Board Town of Southold 53095 Main Road ' Southold, New York 11971 Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. ' We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards,issued by the Comptroller General of the United States. These standards require ' that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. ' The management of the Town of Southold, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management ' are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss form unauthorized ' use or disposition,and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any ' evaluation of the structure to future periods is subject.to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation ' of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Town of ' Southold,New York, for the year ended December 31, 1994, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed ' in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Town Board, Town of Southold ' August 4, 1995 Page 2. ' Our consideration of the internal a control structure would not necessarily disclose all matters in the ' internal control structure that might be reportable conditions and, accordingly,would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. ' This report is intended for the information of the audit committee, management, and others within the Town of Southold and its granting agencies. This restriction is not intended to limit the ' distribution of this report which, upon acceptance by the Town of Southold, is a matter of public record. ' Respectfully submitted, ' Rehn& Fore Certified Public Accountants 1 ' R EIH N & FORE, C]PA§ REHN & FORE Cer>Lified Public Accountants ' 286 Main Street • East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 ' August 4, 1995 ' INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE ' Town Board Town of Southold ' 53095 Main Road Southold,New York 11971 ' Members of the Board: We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31, 1994, and have issued our report thereon dated August 4, 1995. These general purpose financial statements are the responsibility of the Town of Southold'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 generally accepted accounting standards, Government ' Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain ' reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and ' disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement preparation. We believe that our audit provides a ' reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial ' statements,taken as a whole. The accompanying schedule of federal finance assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied ' in the audit of general purpose financial statements, and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. �e��rz � done ' Rehn& Fore Certified Public Accountants 1 TD REHN & FORE Certified Public Accounfanfs t286 Main Street - East Setauket - New York 11733-2844 . 516/751-3886 - Fax 516/751-2740 433 Pulaski Street - Riverhead - New York 11901-3033 - 516/727-3350 ' August 4, 1995 ' INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Town Board Town of Southold ' 53095 Main Road Southold, New York 11971 We have audited the general purpose financial statements of the Town of Southold, as of and for the year ended December 31,1994, and have issued our report thereon dated August 4, 1995. ' We have also audited the compliance of the Town of Southold with requirements applicable to major federal financial assistance programs and have issued our report thereon dated August 4, 1995. ' We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of ' Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement, and about whether the Town of Southold complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audit for the year ended December 31, 1994, we considered the internal control structure of the Town of Southold, in order to determine our auditing procedures for the purpose of expressing our opinion on the Town of Southold's general purpose financial statements, with requirements applicable to major programs'and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 4, 1995. 1 ' Town Board, Town of Southold August 4, 1995 ' Page 2. The Management of the Town of Southold, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and ' procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization ' and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that the federal financial assistance programs are managed in ' compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also,projection of any evaluation of the structure to future periods is subject to the ' risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. ' For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Cash Receipts, Purchasing, Accounts Payable, Cash Disbursements, Payroll, Property ' and Equipment, General Ledger, and External Financial Reporting. For all of the internal control structure categories listed above, we obtained an understanding of the ' design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1994,the Town of Southold expended 100 percent of its total federal financial assistance under major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness ' of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. ' R EIH N & ]FORE, CPAS ' Town Board, Town of Southold August 4, 1995 ' Page 3. ' Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable ' conditions that are also considered to be material weaknesses as defined above. However, we believe none of the reportable conditions described above is a material weakness. ' This report is intended for the information of the audit committee, management, and others within the Town of Southold and its granting agencies. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Town of Southold, is a matter of public ' record. Respectfully submitted, ' Rehn& Fore Certified Public Accountants RF:a. J 1 ' IE E H N & ]FORE, CPRS REHN & FORE CerlLified Public Accountants ' 286 Main Street • East Setauket • New York 11733-2844 . 516/751-3886 • Fax 516/751-2740 433 Pulaski Street • Riverhead • New York 11901-3033 • 516/727-3350 1 ' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE ' PROGRAMS ' August 4, 1995 Town Board Town of Southold ' 53095 Main Road Southold,New York 11971 Members of the Board: We have audited the financial statements of the Town of Southold,New York, as of and for the year ' ended December 31, 1994, and have issued our report thereon dated August 4, 1995. We have also audited the Town of Southold's compliance with the requirements governing types of services allowed or unallowed;,Vligibility;matching,level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to ' each of its major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance, for the year ended December 31, 1994. The management of the Town of Southold,New York is responsible for the Town of Southold's compliance with those ' requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. ' We conducted our audit of compliance with those requirements in accordance with generally accepting auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget Circular A-128," Audits of State and ' Local Governments." Those standards and OMB Circular A-1,28 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence ' about the Town of Southold,New York's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. 1 ' Town Board, Town of Southold August 4, 1995 Page 2. ' In our opinion, the Town of p Southold, New York complied, in all material respects, with the ' requirements governing types of services allowed or unallowed;eligibility; matching, level of effort, or earmarking;reporting; special tests and provision; claims for advance and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial ' assistance programs for the year ended December 31, 1994. This report is intended for the information of the audit committee,management, and members of the ' Town of Southold Board. However,this report is a matter of public record and its distribution is not limited. ' Respectfully submitted, Re4* & done Rehm & Fore ' Certified Public Accountants RF:aj ' R E]H N & FORE, CPAs TOWN OF SOUTHOLD TABLE OF CONTENTS December 31, 1994 STATEMENTS Combined Balance Sheet- All Fund Types and Accounts Group 1-2 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balance -All Government Fund Types . . . . . . . . . . . . . . . . . . . . . . . . 3-4 ' Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - All Government Fund Types . . . . . . . . . . . . . . . . . 5-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: ' All General Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 All Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Capital and Special District Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 9 Combining Balance Sheets: General Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Programs for the Aging . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ' Special Revenue Funds . . . . . . . . . . . . . . . . . . . 12 Special District Funds . • ♦ . . . . • . . . . . . . • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-14 FiduciaryFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ' Combining Statement of Revenue, Expenditure, and Changes in Fund Balance: ' All General Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Programs for the Aging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Special District Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-20 SCHEDULES ' Schedule of Federal Financial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Schedule of Obligations Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 ' Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-39 t TOWN OF SOUTHOLD COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS-Page 1 of 2 December 31.1994 ---GOVERNMENTAL FUND TYPES- FIDUCIARY -ACCOUNT GROUPS- MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TRUST& GENERAL LONG TERM TOTALS GENERAL REVENUE PROJECTS DISTRICTS AGENCY FIXED ASSET DEBT 12/31/94 12/31/93 ASSETS Cash $598,731 $1,781,470 $1,450,870 $1,208,218 $252,686 $5,291,975 $4,776,928 Assessments Receivable 630 630 Due From Other Funds 33,925 178 58,487 482 93,072 28,549 Due from Other Governments 307,186 16,181 323,367 125,718 State and Federal Receivables 32,652 114,179 146,831 242,238 Accou:ds Receivable 12,823 30,252 201,809 244,884 145,071 Other Receivables 14,090 14,090 Supply Inventory 369 369 242 Deferred Expense 55,638 22,272 2,499 80,409 56,865 Deferred Compensation Assets 304,536 304,536 105,831 Land $4,117,564 4,117,564 3,663,546 Buildings 1,782,854 1,782,854 1,714,076 Equipment and Machinery 8,157,614 8,157,614 8,017,403 Provisions to be Made in Future Budgets $8,927,014 8,927,014 8,843,465 TOTAL ASSETS $1,041,324 $1,850,353 $1,450,870 $1,585,822 $571,794 $14,058,032 $8,927,014 $29,485,209 $27,719,932 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $110,006 $236,712 $37,633 $416,267 $800,618 $582,338 Accrued Liabilities 2,036 2,036 Due to Other Funds 178 29,612 4,268 482 $58,532 93,072 28,549 Due to Other Governments 938 332 567 1,837 709 Due to Pension System 13,488 Deferred Compensation 304,536 304,536 105,831 Deferred Revenues 33,198 6,548 39,746 21,491 Deposits Held 208,159 208,159 173,933 Compensated Absences $1,857,014 1,857,014 1,795,465 Due to New York State DEC 650,000 650,000 Obligations Payable 718,000 6,420,000 7,138,000 7,493,000 TOTAL LIABILITIES $144,320 $272,872 $759,901 $419,117 $571,794 $0 $8,927,014 $11,095,018 $10,214,804 Continued Page 1 goo m mm TOWN OF SOUTHOLD COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS-Page 2 of 2 December 31.1994 GOVERNMENTAL FUND TYPES— FIDUCIARY ACCOUNT GROUPS— MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TRUST& GENERAL LONG TERM TOTALS GENERAL REVENUE PROJECTS DISTRICTS AGENCY FIXED ASSET DEBT 12/31/94 12/31/93 TOTAL LIABILITIES-from Page 1 $144,320 $272,872 $759,901 $419,117 $571,794 $0 $8,927,014 $11,095,018 $10,214,804 FUND BALANCE Investment in Fixed Assets $14,058,032 $14,058,032 $13,395,025 Reserve for Bonded Debt $19,184 19,184 12,308 Appropriated Ensuing Yeats Budget $201,000 $416,000 $3,194,708 161,750 3,973,458 2,683,458 Unreserved-Unappropriated 696,004 1,161,481 985,771 2,843,256 1,846,855 Fund Deficit (2,503,739) (2,503,739) (432,518) TOTAL FUND BALANCE $897,004 $1,577,481 $690,969 $1,166,705 $0 $14,058,032 $0 $18,390,191 $17,505,128 TOTAL LIABILITIES AND FUND BALANCE $1,041,324 $1,850,353 $1,450,870 $1,585,822 $571,794 $14,058,032 $8,927,014 $29,485,209 $27,719,932 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 2 rr r rr r� rr r r �r rr rr r r r r r ri ■r r r TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE _ GOVERNEMENTAL FUND TYPES-Page 1 of 2 January 1-December 31,1994 MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TOTALS GENERAL REVENUE PROJECTS DISTRICTS 12/31/94 12/31/93 REVENUES Real Property Taxes $3,613,228 $6,963,223 $1,875,804 $12,452,255 $12,045,231 Real Property Tax Items 41,973 21,936 1,084 64,993 65,883 Non-property Tax Items 224,121 90,987 315,108 320,996 Departmental Income 110,438 317,939 2,812,745 3,241,122 2,576,947 Intergov-ental Charges 132,464 71,505 44,203 248,172 261,065 Use of Money&Property 312,142 182,449 $49,345 68,367 612,303 351,253 Premium on Obligations 1,985 Licenses a Permits 143,997 17,000 160,997 149,923 Fines&Forfeitures 77,805 77,805 77,091 PropertySales/Loss Compensation 1,449 26,956 17,492 45,897 18,925 Miscellaneous Local Sources 39,051 126,434 163,868 329,353 207,558 State Aid 940,326 274,907 180,000 68,912 1,464,145 783,688 Federal Aid 114,059 317,741 1,205,206 1,637,006 608,873 Obligations Authorized 3,372,999 In erfundTransfers 877,481 3,476 880,957 902,038 Notes Redeemed from Appropriations 67,511 67,511 141,000 TOTALREVENUES $5,526,932 $9,421,692 $300,332 $6,348,668 $21,597,624 $21,885,455 EXPENDITURES General Government Support $1,993,813 $223,202 $74,881 $123,218 $2,415,114 $4,933,197 Public Safety 181,122 3,844,276 159,160 4,184,558 4,213,480 Public Health 79,564 3,291 33,168 116,023 109,488 Transportation 315,099 2,249,598 230,832 2,260,953 5,056,482 3,574,555 Economic Assistance&Opportunity 489,980 489,980 483,942 Culture&Recreation 225,169 377,032 602,201 805,776 Home&Community Services 573,496 547,951 6,062 2,755,988 3,883,497 2,827,295 Employees Benefits 259,444 2,087,411 264,380 2,611,235 2,959,959 Debt Service 852,664 122,394 49,385 111,078 1,135,521 926,421 Int.erfundTransfers 358,787 443,258 78,912 880,957 902,038 TOTAL EXPENDITURES $5,329,138 $9,521,381 $361,160 $6,163,889 $21,375,568 $21,736,151 Continued Page 3 TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNEMENTAL FUND TYPES-Page 2 of 2 Jamar I-December 31,1994 MEMORANDUM ONLY SPECIAL CAPITAL SPECIAL TOTALS GENERAL REVENUE PROJECTS DISTRICTS 12/31/94 12/31/93 TOTAL REVENUES from Page 3 $5,526,932 $9,421,692 $300,332 $6,348,668 $21,597,624 $21,885,455 TOTAL EXPENDITUES from Page 3 $5,329,138 $9,52081 $361,160 $6,163,889 $21,375,568 $21,736,151 EXCESS REVENUE OVER(UNDER)EXPENDITURES 197,794 (99,689) (60,828) 184,779 222,056 149,304 RESIDUAL EQUITY TRANSFER (19,184) 19,184 FUND BALANCE-JANUARY 1,1994 $699,210 $1,677,170 $770,981 $962,742 $4,110,103 $3,960,799 FUND BALANCE-DECEMBER 31,1994 $897,004 $1,577,481 $690,969 $1,166,705 $4,332,159 $4,110,103 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 4 TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-ALL GOVERNEMENTAL FUND TYPES-Page 1 of 2 January 1-December 31,1994 SPECIAL CAPITAL SPECIAL TOTAL GENERAL REVENUE PROJECTS DISTRICTS BUDGETS ACTUAL VARIANCE REVENUES Real Property Taxes $3,613,228 $6,963,223 $1,875,755 $12,452,206 $12,452,255 $49 Real Property Tax Items 45,000 20,900 100 66,000 64,993 (1,007) Non-property Tax Items 260,000 260,000 315,108 55,108 Departmental Ise 145,896 323,000 2,998,200 3,467,096 3,241,122 (225,974) Intergovernmental Charges 144,366 74,255 40,000 258,621 248,172 (10,449) Use of Money&Property 306,308 168,400 $24,595 43,000 542,303 612,303 70,000 Licenses&Permits 68,000 16,500 84,500 160,997 76,497 Fines&Forfeitures 61,000 61,000 77,805 16,805 Property Sales/Loss mon 500 2,000 2,500 45,897 43,397 Miscellaneous Local Sources 33,760 79,529 30,000 135,906 279,195 329,353 50,158 State Aid 827,639 273,206 180,000 1,280,845 1,464,145 183,300 Federal Aid 112,977 433,937 64,790 611,704 1,637,006 1,025,302 Obligations Authorized 2,465,000 2,465,000 (2,465,000) Notes Redeemed from Appropriations 67,511 67,511 Interfund Transfers 877,000 3,476 1,205,009 2,085,485 880,957 (1,204,528) TOTAL REVENUES $5,358,674 $9,491,950 $2,703,071 $6,362,760 $23,916,455 $21,597,624 ($2,318,831) Appropriated Fund Balance 450,000 952,260 1,215,982 296,060 2,914,302 TOTAL REVENUES AND OTHER SOURCES $5,808,674 $10,444,210 $3,919,053 $6,658,820 $26,830,757 Continued Page 5 TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-ALL GOVERNEMENTAL FUND TYPES-Page 2 of 2 January I-December 31,1994 SPECIAL CAPITAL SPECIAL TOTAL GENERAL REVENUE PROJECTS DISTRICTS BUDGETS ACTUAL VARIANCE TOTAL REVENUES AND OTHER SOURCES-From Page 5 $5,808,674 $10,444,210 $3,919,053 $6,658,820 $26,830,757 EXPENDITURES General Government Support $2,153,727 $224,100 $3,208,116 $164,250 $5,750,193 $2,415,114 $3,335,079 Public Safety 192,700 3,874,909 159,600 4,227,209 4,184,558 42,651 Public Health 82,333 4,450 33,200 119,983 116,023 3,960 Transportation 329,500 2,666,814 260,000 2,371,799 5,628,113 5,056,482 571,631 Economic Assistance&Opportunity 552,827 552,827 489,980 62,847 Culture&Recreafion 324,799 385,950 710,749 602,201 108,548 Home&Community Services 614,616 679,737 401,552 3,045,588 4,741,493 3,883,497 857,996 Employees Benefft 293,294 2,401,100 296,400 2,990,794 2,611,235 379,559 Debt Service 902,578 124,100 49,385 122,557 1,198,620 1,135,521 63,099 Interfund Transfers 362,300 469,000 79,476 910,776 880,957 29,819 TOTAL EXPENDITURES $5,808,674 $10,444,210 $3,919,053 $6,658,820 $26,830,757 $21,375,568 $5,455,189 EXCESS REVENUE OVER(UNDER)EXPENDITURES (450,000) (952,260) (1,215,982) (296,060 ) (2,914,302 222,056 FUND BALANCE-JANUARY 1,1994 $699,210 $1,677,170 $770,981 $962,742 $4,110,103 $4,110,103 FUND BALANCE-DECEMBER 31,1994 $249,210 $724,910 ($445,001) $666,682 $1,195,801 $4,332,159 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 6 TOWN OF SOUTHOLD STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-ALL GENERAL FUND ' January 1-December 31,1994 ' BUDGET ACTUAL VARIANCE REVENUES Real Property Taxes $3,613,228 $3,613,228 $0 Real Property Tax Items 45,000 41,973 ($3,027) Departmental Income 145,896 110,438 ($35,458) Intergovernmental Charges 144,366 132,464 ($11,902) ' Use of Money&Property 306,308 312,142 $5,834 Licenses&Permits 68,000 143,997 $75,997 Fines&Forfeitures 61,000 77,805 $16,805 ' Property Sales/Loss Compensation 500 1,449 $949 Miscellaneous Local Sources 33,760 39,051 $5,291 State Aid 827,639 940,326 $112,687 Federal Aid 112,977 114,059 $1,082 Obligations Authorized $0 TOTAL REVENUES $5,358,674 $5,526,932 $168,258 ' Appropriated Fund Balance 450,000 TOTAL REVENUES AND OTHER SOURCES $5,808,674 EXPENDITURES General Government Support $2,153,727 $1,993,813 $159,914 ' Public Safety 192,700 181,122 $11,578 Public Health 82,333 79,564 $2,769 Transportation 329,500 315,099 $14,401 ' Economic Assistance&Opportunity 552,827 489,980 $62,847 Culture&Recreation 324,799 225,169 $99,630 Home&Community Services 614,616 573,496 $41,120 Employees Benefits 293,294 259,444 $33,850 Debt Service 902,578 852,664 $49,914 Interfund Transfers 362,300 358,787 $3,513 TOTAL EXPENDITURES $5,808,674 $5,329,138 $479,536 EXCESS REVENUE OVER(UNDER)EXPENDITURES (450,000) 197,794 ' RESIDUAL EQUITY TRANSFER FUND BALANCE-JANUARY 1,1994 $699,210 $699,210 FUND BALANCE-DECEMBER 31,1994 $249,210 $897,004 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT t Page 7 TOWN OF SOUTHOLD ' STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-ALL SPECIAL REVENUE FUND January 1-December 31,1994 1 BUDGET ACTUAL VARIANCE ' REVENUES Real Property Taxes $6,963,223 $6,963,223 $0 Real Property Tax Items 20,900 21,936 $1,036 ' Non-property Tax Items 260,000 224,121 ($35,879) Departmental Income 323,000 317,939 ($5,061) Intergovernmental Charges 74,255 71,505 ($2,750) ' Use of Money&Property 168,400 182,449 $14,049 Licenses&Permits 16,500 17,000 $500 Property Sales/Loss Compensation 2,000 26,956 $24,956 ' Miscellaneous Local Sources 79,529 126,434 $46,905 State Aid 273,206 274,907 $1,701 Federal Aid 433,937 317,741 ($116,196) Interfimd Transfers 877,000 877,481 $481 ' TOTAL REVENUES $9,491,950 $9,421,692 ($70,258) Appropriated Fund Balance 952,260 ' TOTAL REVENUES AND OTHER SOURCES $10,444,210 ' EXPENDITURES ' General Government Support $224,100 $223,202 $898 Public Safety 3,874,909 3,844,276 $30,633 Public Health 4,450 3,291 $1,159 ' Transportation 2,666,814 2,249,598 $417,216 Home&Community Services 679,737 547,951 $131,786 Employees Benefits 2,401,100 2,087,411 $313,689 ' Debt Service 124,100 122,394 $1,706 Interfund Transfers 469,000 443,258 $25,742 TOTAL EXPENDITURES $10,444,210 $9,521,381 $922,829 ' EXCESS REVENUE OVER(UNDER)EXPENDITURES (952,260) (99,689) ' FUND BALANCE-JANUARY 1,1994 $1,677,170 $1,677,170 FUND BALANCE-DECEMBER 31,1994 $724,910 $1,577,481 ' NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 8 TORN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-CAPITAL AND SPECIAL DISTRICT FUNDS January 1-December 31,1994 APIT ------SPECIAL DISTRICTS- BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE REVENUES Real Property Taxes $1,875,755 $1,875,804 $49 Real Property Tax Items 100 1,084 984 Non-property Tax Items 90,987 90,987 Departmental Income 2,998,200 2,812,745 (185,455) Intergovernmental Charges 40,000 44,203 4,203 Use of Money&Property $24,595 $49,345 $24,750 43,000 68,367 25,367 Property Sales(L oss Compensation 17,492 17,492 Miscellaneous Local Sources 30,000 (30,000) 135,906 163,868 27,962 State Aid 180,000 180,000 0 64,790 68,912 4,122 Federal Aid 1,205,009 1,205,206 197 Interfimd Transfers 3,476 3,476 0 TOTAL REVENUES $238,071 $232,821 ($5,250) $6,362,760 $6,348,668 ($14,092 Obligations Authorized 2,465,000 (2,465,000) Notes Redeemed from Appropriations 67,511 67,511 TOTAL $2,703,071 $300,332 ($2,402,739) $6,362,760 $6,348,668 ($14,092 Appropriated Fund Balance 1,215,982 296,060 TOTAL REVENUES AND OTHER SOURCES $3,919,053 $6,658,820 EXPENDITURES General Government Support $3,208,116 $74,881 $3,133,235 $164,250 $123,218 $41,032 Public Safety 159,600 159,160 440 Public Health 33,200 33,168 32 Transportation 260,000 230,832 29,168 2,371,799 2,260,953 110,846 Culture&Recreation 385,950 377,032 8,918 Home&Community Services 401,552 6,062 395,490 3,045,588 2,755,988 289,600 Employees Benefits 296,400 264,380 32,020 Debt Service 49,385 49,385 0 122,557 111,078 11,479 Interfund Transfers 79,476 78,912 564 TOTAL EXPENDITURES $3,919,053 $361,160 $3,557,893 $6,658,820 $6,163,889 $494,931 EXCESS REVENUE OVER(UNDER)EXPENDITURES (1,215,982) (60,828) (296,060) 184,779 RESIDUAL EQUITY TRANSFER (19,184) 19,184 FUND BALANCE-JANUARY 1,1994 $770,981 $770,981 $962,742 $962,742 FUND BALANCE-DECEMBER 31,1994 ($445,001) $690,969 $666,682 $1,166,705 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 9 TOWN OF SOUTHOLD ' COMBINING BALANCE SHEET GENERAL FUNDS December 31,1994 MEMORANDUM ONLY ' PROGRAMSFOR TOTALS TOWNWIDE THE AGING 12/31/94 12/31/93 ASSETS ' Cash $589,916 $8,815 $598,731 $635,971 Due From Other Funds 33,925 33,925 15,070 Due from Other Governments 271,381 35,805 307,186 24,504 t State and Federal Receivables 32,652 32,652 196,788 Accounts Receivable 12,489 334 12,823 113,079 Supply Inventory 369 369 242 Deferred Expense 55,638 55,638 6,242 TOTAL ASSETS $996,370 $44,954 $1,041,324 $991,896 ' LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $105,510 $4,496 $110,006 $273,558 ' Due to General/(From)Aging (39,520) 39,520 Due to Other Funds 178 178 Due to Other Governments 938 938 709 ' Deferred Revenues 33,198 33,198 18,419 TOTAL LIABILITIES $99,366 $44,954 $144,320 $292,686 ' FUND BALANCE Reserve for Bonded Debt $7,995 Unreserved-Appropriated $201,000 $201,000 450,000 ' Unreserved-Unappropriated 696,004 696,004 241,215 TOTAL FUND BALANCE $897,004 $0 $897,004 $699,210 ' TOTAL LIABILITIES AND FUND BALANCE $996,370 $44,954 $1,041,324 $991,896 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 10 TOWN OF SOUTHOLD COMBINED BALANCE SHEET PROGRAMS FOR THE AGING December 31,1994 ADULT DAY HOME AIDE/ NUTRITION CARE CHORE SNAP EISEP TOTALS ASSETS Cash $5,278 $1,405 $241 $1,589 $302 58,815 Due from Other Governments 16,231 2,980 6,275 6,777 3,542 35,805 Accounts Receivable 176 158 334 TOTAL ASSETS $21,509 $4,385 $6,692 $8,366 $4,002 $44,954 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $1,721 $268 $1,702 $805 $4,496 Due to General Fund 19,788 $3,515 6,424 6,596 3,197 39,520 Due to Other Governments 870 68 938 TOTAL LIABILITIES $21,509 54,385 $6,692 $8,366 54,002 544,954 FUND BALANCE 50 $0 50 50 50 50 TOTAL LIABILITIES AND FUND BALANCE $21,509 54,385 56,692 $8,366 54,002 544,954 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 11 TOWN OF SOUTHOLD COMBINED BALANCE SHEET SPECIAL REVENUE FUNDS December 31,1994 GENERAL -HIGHWAY FUNDS- SPECIAL RISK MEMORANDUM ONLY FUND GRANT RETENTION TOTALS PART TOWN TOWNWIDE PART TOWN FUND FUND 1251/94 12/31/93 ASSETS Cash $243,230 $86,484 $815,372 $636,384 $1,781,470 $1,665,072 Due From Other Funds 178 178 1,093 Due from Other Governments $16,181 16,181 101,214 State and Federal Receivables 45,433 Accounts Receivable 27,864 1,952 436 30,252 28,226 Deferred Expense 2,066 5,708 14,498 22,272 42,520 TOTAL ASSETS $273,338 $94,144 $830,306 $16,181 $636,384 $1,850,353 $1,883,558 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $97,113 $19,682 $35,391 $1,181 $83,345 $236,712 $202,223 Due to Other Funds 14,612 15,000 29,612 1,093 Deferred Revenues 6,548 6,548 3,072 TOTAL LIABILITIES $111,725 $19,682 $35,391 $16,181 $89,893 $272,872 $206,388 FUND BALANCE Reserve for Bonded Debt Unreserved-Appropriated $16,000 $400,000 $416,000 $760,000 Unreserved-Unappropriated $161,613 58,462 394,915 $546,491 1,161,481 $917,170 TOTAL FUND BALANCE $161,613 $74,462 $794,915 $0 $546,491 $1,577,481 $1,677,170 TOTAL LIABILITIES AND FUND BALANCE $273,338 $94,144 $830,306 $16,181 $636,384 $1,850,353 $1,883,558 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 12 TOWN OF SOUTHOLD COMBINED BALANCE SHEET SPECIAL DISTRICT FUNDS-Page 1 of 2 December 31,1994 WEST CREEK SOUTHOLD SHORECREST EAST-WEST FIRE WEST SOUTHOLD FISHERS SOLID WASTE FISHERS ISLAND IMPROVEMENT SHORES IMP. IMPROVEMENT PROTECTION GREENPORT WASTEWATER ISLAND SEWER MANAGEMENT REFUSE AND DISTRICT DISTRICT DISTRICT DISTRICT WATER DIST. DISTRICT DISTRICT DISTRICT GARBAGE DIST. ASSETS Cash $15,386 $3,798 $10,747 $344,265 $41,471 $27,318 $194,588 Assessments Receivable 630 Due From Other Funds State and Federal Receivables Accounts Receivable 2,668 7,807 191,334 Deferred Expense 2,499 TOTAL ASSETS $0 $15,386 $3,798 $10,747 $0 $346,933 $49,908 $221,151 $194,588 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $13,284 $2,886 $233,721 $16,399 Accrued Liabilities Due To Other Funds $482 Due to Other Governments TOTAL LIABILITIES $482 $0 $0 $13,284 $2,886 $233,721 $16,399 FUND BALANCE Reserve For Bonded Debt $15,386 $3,798 Appropriated $9,900 $100,000 Unappropriated ($482) 847 233,649 $47,022 ($12,570) $178,189 TOTAL FUND BALANCE ($482) $15,386 $3,798 $10,747 $0 $333,649 $47,022 ($12,570) $178,189 TOTAL LIABILITIES AND FUND BALANCE $0 $15,386 $3,798 $10,747 $0 $346,933 $49,908 $221,151 $194,588 Continued Page 13 I TOWN OF SOUTHOLD COMBINED BALANCE SHEET SPECIAL DISTRICT FUNDS-Page 2 of 2 December 31,1994 FISHERS CUTCHOGUE- SOUTHOLD ORIENT- MATTITUCK ORIENT MEMORANDUM ONLY ISLAND FERRY NEW SUFFOLK PARK EAST MARION PARK MOSQUITO TOTALS DISTRICT PARK DISTRICT DISTRICT PARK DISTRICT DISTRICT DISTRICT 12/31/94 12/31/93 ASSETS Cash $396,258 $26,935 $35,993 $41,488 $34,688 $35,283 $1,208,218 $1,029,350 Assessments Receivable 630 Due From Other Funds 58,487 58,487 12,386 State and Federal Receivables 114,179 114,179 Accounts Receivable 201,809 3,766 Deferred Expense 2,499 8,103 TOTAL ASSETS $568,924 $26,935 $35,993 $41,488 $34,688 $35,283 $1,585,822 $1,053,605 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $137,314 $2,899 $9,764 $416,267 $89,251 Accrued Liabilities $2,036 2,036 Due To Other Funds 482 1,612 Due to Other Governments 332 332 TOTAL LIABILITIES $137,314 $0 $2,899 $2,036 $10,096 $0 $419,117 $90,863 FUND BALANCE Reserve For Bonded Debt $19,184 $4,313 Appropriated $51,850 161,750 269,959 Unappropriated 379,760 $26,935 $33,094 $39,452 $24,592 $35,283 985,771 688,470 TOTAL FUND BALANCE $431,610 $26,935 $33,094 $39,452 $24,592 $35,283 $1,166,705 $962,742 TOTAL LIABILITIES AND FUND BALANCE $568,924 $26,935 $35,993 $41,488 $34,688 $35,283 $1,585,822 $1,053,605 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 14 TOWN OF SOUTHOLD COMBINING BALANCE SHEET FIDUCIARY FUNDS December 31,1994 AGENCY&TRUST MEMORANDUM ONLY FISHERS ISLAND TOTALS TOWN FERRY DISTRICT 12/31/94 12/31/93 ASSETS Cash $201,694 $50,992 $252,686 $195,510 Due From Other Funds 482 482 State and Federal Receivables 17 Other Receivables 30 14,060 14,090 1 Deferred Compensation Assets 286,596 17,940 304,536 105,831 TOTAL ASSETS $488,802 $82,992 $571,794 $301,358 1 LIABILITIES AND FUND BALANCE LIABILITIES Due to Other Funds $45 $58,487 $58,532 $8,106 1 Due to State&Federal Governments 567 567 Deferred Compensation 286,596 17,940 304,536 105,831 Due To Pension Systems 13,488 Deposits Held 201,594 6,565 208,159 173,933 TOTAL LIABILITIES $488,802 $82,992 $571,794 $301,358 TOTAL FUND BALANCE $0 $0 $0 $0 TOTAL LIABILITIES AND FUND BALANCE $488,802 $82,992 $571,794 $301,358 ' NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 15 TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE ALL GENERAL FUNDS January 1-December 31,1994 ' PROGRAMS MEMORANDUM ONLY WHOLE FOR THE TOTALS ' TOWN AGING 12/31/94 12/31/93 REVENUES Real Property Taxes $3,613,228 $3,613,228 $3,797,875 Real Property Tax Items 41,973 41,973 44,425 " Departmental Income 19,130 $91,308 110,438 1,247,569 Intergovernmental Charges 14,000 118,464 132,464 137,221 ' Use of Money&Property 312,142 312,142 98,166 Licenses&Permits' 143,997 143,997 133,863 Fines&Forfeitures 77,805 77,805 77,091 Property Sales/Loss Compensation 1,449 1,449 11,030 ' Miscellaneous Local Sources 39,051 39,051 17,609 State Aid 940,326 940,326 504,510 Federal Aid 1,088 112,971 114,059 240,457 ' Serial Bond Proceeds 141,873 TOTAL REVENUES $5,204,189 $322,743 $5,526,932 $6,451,689 ' EXPENDITURES General Government Support $1,992,263 $1,550 $1,993,813 $2,093,951 ' Public Safety 181,122 181,122 174,272 Public Health 79,564 79,564 76,234 Transportation 315,099 315,099 311,319 Economic Assistance&Opportunity 181,729 308,251 489,980 483,942 Culture&Recreation 225,169 225,169 417,569 Home&Community Services 573,496 573,496 1,161,784 Employees Benefits 246,502 12,942 259,444 467,082 t Debt Service 852,664 852,664 701,356 Interfund Transfers 358,787 358,787 455,816 ' TOTAL EXPENDITURES $5,006,395 $322,743 $5,329,138 $6,343,325 EXCESS REVENUE OVER(UNDER)EXPENDITURES $197,794 $0 $197,794 $108,364 ' RESIDUAL EQUITY TRANSFER 7,995 FUND BALANCE-JANUARY 1,1994 $699,210 $0 699,210 $582,851 FUND BALANCE-DECEMBER 31,1994 $897,004 $0 $897,004 $699,210 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT 1 Page 16 TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE PROGRAMS FOR THE AGING January 1-December 31,1994 ADULT DAY HOME AIDE/ NUTRITION CARE CHORE SNAP EISEP TOTALS REVENUES DepartrnentalIncome $49,650 $21,080 $1,138 $17,331 $2,109 $91,308 Intergovernmental Charges 22,267 16,584 23,974 31,442 24,197 118,464 Federal Aid 103,220 9,751 112,971 TOTAL REVENUES $175,137 $37,664 $25,112 $58,524 $26,306 $322,743 EXPENDITURES General Goverment Support $1,550 $1,550 Economic Assistance&Opportunity $168,937 $35,322 $23,569 55,539 $24,884 308,251 Employees Benefits 6,200 2,342 1,543 1,435 1,422 12,942 TOTAL EXPENDITURES $175,137 $37,664 $25,112 $58,524 $26,306 $322,743 EXCESS REVENUE OVER(UNDER)EXPENDITURES $0 $0 $0 $0 $0 $0 FUND BALANCE-JANUARY 1,1994 $0 $0 $0 $0 $0 $0 FUND BALANCE-DECEMBER 31,1994 $0 $0 $0 $0 $0 $0 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 17 TOWN OF SOUTHOLD COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL REVENUE FUNDS January 1-December 31,1994 GENERAL -HIGHWAY FUNDS- SPECIAL RISK MEMORANDUM ONLY FUND GRANT RETENTION TOTALS PART TOWN TOWNWIDE PART TOWN FUNDS FUND 12/31/94 12/31/93 REVENUES Real P-o"Taxes $4,276,016 $932,095 $1,755,112 $6,963,223 $7,024,950 Real Property Tax Items 13,545 2,831 5,560 21,936 21,010 Non-property Tax Items 224,121 224,121 320,996 DepartmratalIncome 317,939 317,939 305,789 Intergoveomental Charges 71,163 342 71,505 74,255 Use of Money&Property 92,684 14,288 58,174 $17,303 182,449 142,655 Licenses&Permits 17,000 17,000 16,060 Property Sales/1.mCompensation 24,229 2,727 26,956 7,895 Miscellaneous Local Sources 46,307 4,476 16,666 58,985 126,434 94,509 State Aid 86,459 188,448 274,907 278,674 Federal Aid $317,741 317,741 260,990 Serial Bond Proceeds 0 511,236 Interfund Transfers 877,481 877,481 870,044 TOTALREVENUES $5,169,463 $956,417 $2,024,302 $317,741 $953,769 $9,421,692 $9,929,063 EXPENDITURES General Government Support $142,054 $81,148 $223,202 $290,622 Public Safety 3,844,276 3,844,276 3,889,808 Public Health 3,291 3,291 3,500 Transportation $770,114 $1,479,484 2,249,598 2,159,447 Home&Community Services 230,210 $317,741 547,951 439,697 EmployeesBenefits 1,216,718 77,759 160,440 632,494 2,087,411 2,339,733 Debt Service 53,688 59,078 9,628 122,394 58,003 Interfund Transfers 190,020 57,122 196,116 443,258 446,222 TOTAL EXPENDITURES $5,680,257 $964,073 $1,845,668 $317,741 $713,642 $9,521,381 $9,627,032 EXCESS REVENUE OVER(UNDER)EXPENDITURES ($510,794) ($7,656) $178,634 $0 $240,127 ($99,689) $302,031 RESIDUAL EQUITY TRANSFER 0 0 FUND BALANCE-JANUARY 1,1994 $672,407 $82,118 $616,281 $0 $306,364 1,677,170 $1,375,139 FUND BALANCE-DECEMBER 31,1994 $161,613 $74,462 $794,915 $0 $546,491 $1,577,481 $1,677,170 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 18 TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL DISTRICT FUNDS-Page 1 of 2 JANUARY 1-DECEMBER 31.1994 WEST CREEK SOUTHOLD SHORECREST EAST-WEST FIRE WEST SOUTHOLD FISHERS SOLID FISHERS ISLAND IMPROVEMENT SHORES IMP. IMPROVEMENT PROTECTION GREENPORT WASTEWATER ISLAND SEWER WASTE REFUSE AND DISTRICT DISTRICT DISTRICT DISTRICT WATER DIST. DISTRICT DISTRICT DISTRICT GARBAGE DIST. REVENUES Real Property Taxes $8,248 $238,745 ($38) $278,250 $452,800 $343,750 Real Property Tax Items 4 109 128 208 458 Non-property Tax Items 90,987 Departmental Income 65,697 $25,930 1,671,573 8,644 Intergovernmental Charges 28,800 Use of Money and Property 14 3,276 14,712 1,201 8,324 7,304 Property Sales/Loss Compensation Miscellaneous Local Sources 27,549 State Aid Federal Aid Serial Bond Proceeds TOTAL REVENUES $8,266 $0 $0 $242,130 ($38) $387,587 $27,131 $2,251,441 $360,156 EXPENDITURES General Government Support $1,235 $15,885 $21,271 Public Safety $159,160 Public Health Transportation Culture and Recreation Home and Community Service 245,264 $6,677 2,114,720 216,211 Employee Benefits 73,079 62,283 1,429 Debt Service $8,765 3,439 Interfund Transfers 3,476 75,436 TOTAL EXPENDITURES $8,765 $0 $0 $232,239 $0 $253,414 $6,677 $2,268,324 $238,911 EXCESS REVENUE OVER (UNDER) EXPENDITURES ($499) $9,891 ($38) $134,173 $20,454 ($16,883) $121,245 RESIDUAL EQUITY TRANSFER $15,386 $3,798 $0 FUND BALANCE-JANUARY 1,1994 $17 $0 $0 $856 $38 $199,476 $26,568 $4,313 $56,944 FUND BALANCE-DECEMBER 31,1994 ($482) $15,386 $3,798 $10,747 $0 $333,649 $47,022 ($12,570) $178,189 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 19 TOWN OF SOUTHOLD COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL DISTRICT FUNDS-Page 2 of 2 JANUARY 1-DECEMBER 31,1994 FISHERS CUTCHOGUE- SOUTHOLD ORIENT- MATTITUCK ORIENT MEMORANDUM ONLY ISLAND FERRY NEW SUFFOLK PARK EAST MARION PARK MOSQUITO TOTALS DISTRICT PARK DISTRICT DISTRICT PARK DISTRICT DISTRICT DISTRICT 12/31/9 12/31/93 REVENUES Real Property Taxes $200,000 $46,000 $106,049 $16,000 $156,000 $30,000 $1,875,804 $1,222,406 Real Property Tax Items 92 72 13 1,084 448 Non-property Tax Items 90,987 Departmental Income 1,040,901 2,812,745 1,023,589 Intergovernmental Charges 15,403 44,203 49,589 Use of Money and Property 15,842 991 10,236 574 4,831 1,062 68,367 53,874 Property Sales/Loss Compensation 17,300 192 17,492 Miscellaneous Local Sources 129,906 180 6,233 163,868 95,440 State Aid 68,912 68,912 504 Federal Aid 1,205,206 1,205,206 107,426 Serial Bond Proceeds 0 0 24,890 TOTAL REVENUES $2,676,262 $46,991 $116,465 $16,574 $184,436 $31,267 $6,348,668 $2,578,166 EXPENDITURES General Government Support $84,827 $123,218 $115,379 Public Safety 159,160 149,400 Public Health $33,168 33,168 29,754 Transportation 2,260,953 2,260,953 1,103,789 Culture and Recreation $52,660 $97,251 $19,509 $207,612 377,032 388,207 Home and Community Service 173,116 2,755,988 685,128 Employee Benefits 127,589 264,380 153,144 Debt Service 98,874 111,078 111,718 Interfund Transfers 78,912 0 TOTAL EXPENDITURES $2,745,359 $52,660 $97,251 $19,509 $207,612 $33,168 $6,163,889 $2,736,519 EXCESS REVENUE OVER(UNDER) EXPENDITURES ($69,097) ($5,669) $19,214 ($2,935) ($23,176) ($1,901) $184,779 ($158,353) RESIDUAL EQUITY TRANSFER $19,184 $4,313 FUND BALANCE-JANUARY 1,1994 $500,707 $32,604 $13,880 $42,387 $47,768 $37,184 $962,742 $1,116,782 FUND BALANCE-DECEMBER 31,1994 $431,610 $26,935 $33,094 $39,452 $24,592 $35,283 $1,166,705 $962,742 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 20 TOWN OF SOUTHOLD SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE December 31,1994 FEDERAL FUND FUND FEDERAL GRANTOR/PASS CFDA PROGRAM BALANCE REVENUE BALANCE THROUGH GRANTORIPROGRAM TITLE NUMBER AMOUNT 1/1/94 RECOGNIZED EXPENDITURES 12/31/94 U.S Department of Agriculture Passed through Suffolk County: Cash-In-Lieu of Food Awards 10.550 $38,536 $0 $38,536 $38,536 $0 U.S Department of Health&Human Services Passed through Suffolk County: Nutrition 93.045 $74,442 $0 $74,435 $74,435 $0 U.S Department of Housing and Urban Development Passed through Suffolk County: Community Development Block Grant 14.218 $1,583,758 (1) $0 $317,741 $317,741 $0 Federal Emergency Management Agency Passed through the State of New York Hurricane Bob 83.516 $456,753 $0 $1,088 $1,088 $0 U.S Department of Transportation Federal Aviation Administration Overlay Runways 12-30&7-25 No.3-36-0029-08-93. 20.106 $1,565,453 $0 $1,205,206 $1,205,206 $0 (1) Combination of subgrant awards as follows: Contract Date Program Year Commenced Amount XIII -1987 1/1/87 $173,830 XIV -1988 4/1/88 159,000 XV -1989 4/1/89 159,000 XVI -1990 4/1/90 156,000 XVII -1991 5/1/91 183,000 XVIII -1992 5/1/92 288,000 XD{ -1993 5/14/93 233,928 XX -1994 5/18/94 231,000 $1,583,758 The above program years are open as of December 31,1994 with the exception of Year XVIII-1992,which closed during 1994. NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 21 1 TOWN OF SOUTHOLD SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE December 31,1994 FEDERAL FUND FUND FEDERAL GRANTORIPASS CFDA PROGRAM BALANCE REVENUE BALANCE THROUGH GRANTORIPROGRAM TITLE NUMBER AMOUNT 1/1/94 RECOGNIZED EXPENDITURES 12/31/94 U.S Department of Agriculture Passed through Suffolk County: Cash-In-Lieu of Food Awards 10.550 $38,536 SO $38,536 538,536 50 U.S Department of Health&Human Services Passed through Suffolk County: Nutrition 13.635 $74,442 50 $74,435 $74,435 50 U.S Department of Housing and Urban Development Passed through Suffolk County: , Community Development Block Grant 14.218 $1,583,758 (1) 50 5317,741 5317,741 SO Federal Emer a Management Agency Passed through the State of New York Hurricane Bob 83.516 5456,753 SO $1,088 $1,088 50 U.S Department of Transportation Federal Aviation Administration Overlay Runways 12-30&7-25 No.3-36-0029-08-93 20.106 $1,565,453 50 51,205,206 $1,205,206 SO (1) Combination of subgrant awards as follows: Contract Date Program Year Commenced Amount XIII -1987 1/1/87 5173,830 XIV -1988 4/1/88 159,000 XV -1989 4/1/89 159,000 XVI -1990 4/1/90 156,000 XVII -1991 5/1/91 183,000 XVIII -1992 5/1/92 288,000 XIX -1993 5/14/93 233,928 XX -1994 5/18/94 231,000 $1,583,758 The above program years are open as of December 31,1994 with the exception of Year XVIII-1992,which closed during 1994. NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 21 TOWN OF SOUTHOLD SCHEDULE OF OBLIGATIONS PAYABLE December,31,1994 Original Balance Issued Paid Balance issue Final Interest Outstanding in in Outstanding Purmse Date Mahu1 Rate 1/1/94 1994 1994 12/31/94 Purchase of Ferry Serial Bond Aug-77 Feb-97 5.90 140,000 35,000 105,000 Agricultural Land Rights Serial Bond Oct-84 Apr-05 9.10 1,085,000 75,000 1,010,000 Purchase of Feng Serial Bond Oct-84 Apr-05 9.10 325,000 25,000 300,000 Various Purposes Serial Bond Feb-91 Feb-I1 6.375 2,125,000 275,000 1,850,000 Various Purposes Serial Bond Apr-93 Feb-12 5.00 2,695,000 170,000 2,525,000 Pension Liability Serial Bond Oct-93 Oct-05 6.00 • 678,000 48,000 630,000 Various Purposes B.A.N. Nov-93 Nov-94 2.79 445,000 445,000 0 Various Purposes B.A.N. Nov-94 Nov-95 4.45 718,000 718,000 Total Obligations Payable 7,493,000 718,000 1,073,000 7,138,000 Variable Rate Bonds From To Rate Oct-93 Oct-01 6.00 Oct-01 Oct-03 6.10 Oct-03 Oct-05 6.125 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT Page 22 ' Town of Southold Notes To The Financial Statements ' For the Fiscal Year Ended December 31, 1994 L Summary of Sienificant Accounting Policies ' The financial statements of the Town of Southold have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for t establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below. ' A. Financial Reporting Entity The Town of Southold, which was established in 1640, is governed by its Charter, the Local Municipal Law and other general laws of the State of New York and various local ' laws. The Town Board is the legislative body responsible for overall operations, the Supervisor serves as Chief Executive Officer and as Chief Fiscal Officer. ' Basic services provided included Public Safety, Health, Transportation, Economic Assistance and Opportunity, Culture and Recreation, and Home and Community Services. ' All governmental activities and functions performed for the Town are its direct responsibility. No other governmental organizations have been included or excluded from the reporting entity. The financial reporting entity consists of (a) the primary government which is the Town of Southold, (b) organizations for which the primary government is financially accountable ' and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth in GASB Statement 14. The decision to include a potential component unit in the Town's reporting entity is based ' on several criteria set forth in GASB 14 including legal standing, fiscal dependency, and financial accountability. Based on the application of these criteria, the following is a brief review of certain entities considered in determining the Town of Southold reporting entity. 1. Included in the Reporting Entity ' a. The Fishers Island Ferry District was established in 1947 by the Town of Southold under special legislation of the New York State Legislature. The Ferry District owns, maintains and operates a public ferry for the transportation for hire ' of persons and vehicles, and goods, wares and merchandise, from Fishers Island across the waters of the Long Island Sound and other adjacent waters to points ' Page 23 1 twithin and without the state. In addition, the District operates and maintains an airport situated on Fishers Island. The District is administered by an elected board ' of commissioners consisting of five members who report to the Town Board of the Town of Southold. The Town of Southold is responsible for all fiscal matters of the District, including raising of taxes for District purposes, and issues all District ' indebtedness which is supported by the full faith and credit of the Town of Southold. The Ferry District is a component unit, part of the primary government, and is reported in the special district fund types. ' b. Various other districts established by the Town of Southold are operated under provisions of Article 12 of Town Law. Each district is administered by a separate ' board of commissioners elected by the qualified voters of each district. The Town of Southold raises taxes for each district and issues all district indebtedness which is supported by the full faith and credit of the Town. These district are component ' units, part of the primary government, and are reported in the special district fund types. These districts include the following: ' Orient Mosquito District, established in 1916 Fishers Island Garbage and Refuse District, established in 1952 ' Cutchogue-New Suffolk Park District, established in 1953 Orient-East Marion Park District, established in 1969 Southold Park District, established in 1907 ' Mattituck Park District, established in 1941 Complete financial statements of these component units can be obtained from their ' respective administrative offices: Orient Mosquito District Fishers Island Garbage ' Harrison Demarest, Treasurer & Refuse District Main Road Mildred Dixon, Treasurer Orient, NY 11957 Fishers Island, NY 06390 Cutchogue-New Suffolk Orient-East Marion Park District Park District ' Thomas Shalvey, Treasurer Alfred Norklun, Treasurer P.O. Box 311 Route 25 Cutchogue, NY 11935 Orient, NY 11957 ' Southold Park District Mattituck Park District Cheryl Crane, Treasurer John Cushman, Treasurer ' P.O. Box 959 P.O. Box 1413 Southold, NY 11971 Mattituck, NY 11952 ' Page 24 1 B. Basis of Pmsentation - Fund Accounting The accounts of the Town are organized on the basis of funds or account groups, each of ' which is considered a separate accounting entity. The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance/retained earnings, revenues and expenditures/expenses which are ' segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The various funds are summarized by type in the financial statements. (Certain funds of the local government ' are utilized to account for resources derived from, and/or expenditures applicable to an area less than the entire local government). The following fund types and account groups are used: ' 1. Fund Categories a. Governmental Funds - Governmental funds are those through which ' most governmental functions are financed. The acquisition, use and balance of expendable financial resources and the related liabilities are accounted for through governmental funds. The measurement focus of the governmental funds is upon ' determination of financial position and changes in financial position. The following are the Town's governmental fund types. ' General Fund - the principal operating fund which includes all operations not required to be recorded in other funds. ' Special Revenue Funds - used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The ' following Special Revenue Funds are utilized: Highway Funds-To maintain and operate highways. ' General Fund Part Town-To provide general services outside the Village of Greenport. Community Development Fund-Segregate and account for projects funded ' by special federal revenue. Risk Retention Fund-To provide health benefits to certain Town employees. ' Capital Projects Fund - used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by special assessment funds and trust funds). ' b. Fiduciary Funds - used to account for assets held by the local government in a trustee or custodial capacity: Trust and Agencv Funds - used to account for money received and held in the ' Page 25 capacity of trustee, custodian or agent. These include expendable trusts, non-expendable trusts, and agency funds. ' 2. Account Groups Account Groups are used to establish accounting control and accountability for general ' fixed assets and general long-term debt. The two account groups are not "funds". They are concerned with measurement of financial position and not results of operations. The General Fixed Assets Account Groun - used to account for land, buildings, improvements other than buildings, and equipment utilized for general government ' purposes, except those accounted for in proprietary funds. The General Long-Term Debt Account Group - used to account for all long-term debt except that accounted for in proprietary and special assessment funds. ' C. Basis of Accounting/Measumment Focus Basis of accounting refers to when revenues and expenditures and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Basis of ' accounting relates to the timing of the measurements made, regardless of the measurement focus. Measurement focus is the determination of what is measured, i.e. expenditures or expenses. ' Modified Accrual Basis - All governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. ' Under this basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be ' used to pay liabilities of the current period. Material revenues that are accrued include real property taxes, state and federal aid, ' sales tax and certain user charges. If expenditures are the prime factor for determining eligibility, revenues from federal and state grants are accrued when the expenditure is made. Expenditures are recorded when incurred except that: ' a. Expenditures for inventory-type items are recognized at the time of the disbursements. b. Principal and Interest on indebtedness are not recognized as an expenditure ' until due. c. Compensated absences, such as vacations and sick leave which vests or ' Page 26 accumulates, are charged as an expenditure when paid ( See Note I(n). ' Accrual Basis - Proprietary funds are accounted for on the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recorded when incurred. Fixed assets and long-term liabilities related to these activities are ' recorded within the funds. Account Groups - General fixed assets are recorded at actual or estimated cost or, in the case of gifts and contributions, at the fair market value at the time received. No provision for depreciation is made. General long-term debt liabilities are recorded at the par value of the principal amount. No liability is recorded for interest payable at ' maturity. D. Property Taxes ' County real property taxes are levied annually and become a lien on December 1. Taxes are collected during the period December 1 to May 31. Taxes for county purposes (apportioned to the area of the county inside the Town of Southold) are levied together ' with taxes for town and special district purposes as a single bill. The towns and special districts receive the full amount of their levies annually out of the first amounts collected on the combined bills. The county assumes enforcement responsibility for all taxes levied in the towns (and for unpaid county taxes in the Town). Unpaid village taxes and school district taxes are turned over to the county for ' enforcement. Any such taxes remaining unpaid at year end are relevied as county taxes in the subsequent year. E. Budgetary Data 1. Budget Policies - The budget policies are as follows: a. No later than October 1, the Supervisor submits a tentative budget to the Town Board for the fiscal year commencing the following fiscal year. The tentative ' budget includes the proposed means of financing for all funds. b. After public hearings are conducted to obtain taxpayer comments, no later than ' November 20, the Town Board adopts the budget. c. All modifications of the budget must be approved by the Town Board. 2. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other ' commitments for the expenditure of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations is employed in all Page 27 1 tfunds. Encumbrances are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Expenditures for such commitments are recorded ' in the period in which the liability is incurred. 3. Budget Basis of Accounting ' Budgets are adopted annually on a basis consistent with generally accepted accounting principles. Appropriations authorized for the current year are increased by the amount of encumbrances carried forward from the prior year. Budgetary controls for the ' special revenue funds are established in accordance with the applicable grant agreement which covers a period other than the Towns fiscal year. Budgets have been adjusted to reflect the Town's fiscal year. F. Changes in Accounting Policies As a result of the establishment of the Solid Waste Management District, effective ' January 1, 1994 all costs relating to activities at the Cutchogue landfill were chargeable to the Solid Waste Management District and no longer chargeable to the General Fund. ' As a result of the abolition of the Village of Greenport's Police Department, on November 17, 1994, the Town of Southold assumed Police activities within the Village. For the ' period from November 17, 1994 to December 31, 1994, the cost of Police activities was chargeable to the Special Revenue Fund since appropriations for Police activities had been provided for and were available in the Special Revenue Fund. Appropriations have been ' provided in the General Fund for all Police costs incurred after December 31, 1994.. G. Departures from Generally Accepted Accounting Pnnciples (GAAP) ' There are no departures from generally accepted accounting principles (GAAP). H. Property, Plant and Equipment - General t Fixed assets purchased for general governmental purposes are recorded as expenditures in the governmental funds and are capitalized at costs (or estimated historical costs for assets purchased prior to 1976) in the General Fixed Assets Account Group. Contributed fixed ' assets are recorded at fair market value at the date received. Fixed assets consisting of certain infrastructure type improvements other that buildings, ' including roads, bridges, curbs and gutters, streets and sidewalks, drainage and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the Town. Therefore, the purposes of stewardship for capital expenditures can be ' satisfied without recording these assets. No depreciation has been provided on general fixed assets, nor has interest on general fixed assets construction in progress been capitalized. ' Page 28 ' L Insurance The Town assumes the liability for most risk including, but not limited to, property damage and personal injury liability. Judgements and claims are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. 1 J. Vacation and Sick Leave and Compensatory Absences Town employees are granted vacation and sick leave and earn compensatory absences in ' varying amounts. In the event of termination or upon retirement, an employee is entitled to payment for accumulated vacation and sick leave and unused compensatory absences at various rates subject to certain maximum limitations. Estimated vacation and sick leave and compensatory absences accumulated by governmental fund type employees have been recorded in the general long-term ' obligations account group. Payment of vacation and sick leave recorded in the general long-term obligations account ' group is dependent upon many factors, therefore, timing of future payments is not readily determinable. However, management believes that sufficient resources will be made available for the payments of vacation and sick leave and compensatory absences when ' such payment becomes due. K. Post Retirement Benefits ' In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially, all Town ' employees may become eligible for these benefits if they reach normal retirement age while working for the Town. Health care benefits and survivors benefits are provided through either an insurance company or the Risk Retention Fund whose premiums are ' based on the benefits paid during the year. The Town recognizes the cost of providing benefits by recording its share of insurance premiums or the actual benefits paid from the Risk Retention Fund as an expenditure in the year paid. During the year, $849,109 was ' paid on behalf of 69 retirees and 171 active employees and is recorded as an expenditure in the Risk Retention Fund and the Special Revenue Fund. The cost of providing benefits for 69 retirees is not separable from the cost of providing benefits for the 171 active ' employees: L Landfill Closure and Postclosure Care Costs ' The Town ceased accepting waste at its Cutchogue landfill as of October 8, 1993. The Town entered into a stipulation of settlement with the New York State Department of Environmental Conservation in October, 1994 in which all charges of operational ' violations at the Cutchogue landfill were dropped. Under the stipulation, the Town agreed to close and place a final cover over the landfill and to pay a civil penalty of $650,000 ' Page 29 1 over the next seven years (See Note III (13)(3)). In addition to placement of the final cover on the landfill, state and federal regulations presently require the Town to perform ' certain maintenance and monitoring functions at the site for up to thirty years. Actual costs associated with the placement of the final cover and the post-closure monitoring are uncertain at this time pending final determination from the New York State Department of Environmental Conservation. The Town is presently awaiting regulatory relief on this matter. ' M. Total Columns on the General Purpose Financial Statements Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of the data. ' IL Stewardshi a. Compliance,li ance, AccountabiLty A. Material Violations of Finance Related Activities There are no material violations of finance-related provisions. ' B. Deficit Fund Balances 1. The Solid Waste Management District had a deficit fund balance at December 31, 1994 amounting to $12,570. The principal factors which caused this deficit include budgeted garbage removal fee revenues of $1,775,000 actual receipts of $1,573,993 and budgeted solid waste expenditures of $2,352,800 against actual expenditures of ' $2,268,324. An appropriation is included in the 1995 budget to fund this deficit. 2. The West Creek Estates Road Improvement District had a deficit fund balance at ' December 31, 1994 amounting to $482. This deficit is the result of a clerical error in preparing the 1994 budget. An appropriation is included in the 1995 budget to fund this deficit. ' C. Overdrawn Appropriations There are no overdrawn appropriations. ' Page 30 HL Detail Notes on all Funds and Account Groups ' A. Assets 1. Cash and Investments ' Town investment policies are governed by state statutes. In addition, the Town has its own written investment policy. Town monies are deposited in FDIC insured commercial banks or trust companies located within the state. The Supervisor is authorized to use demand accounts and certificates of deposits. Permissible investments include obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations of New York State or its localities. Collateral is required for demand deposits and certificates of deposit at 105 percent of all deposits not covered by federal deposit insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and school districts. ' The written investment policy requires that repurchase agreements be purchased from banks located within the State and that underlying securities must be obligations of the federal government. Underlying securities must have a market value of at least 105 ' percent of the cost of the repurchase agreement. Deposits. All deposits, including certificates of deposits, are carried at cost plus accrued interest. Deposits at year-end were entirely covered by federal depository insurance or by collateral held by the Town's custodial banks in the Towns name. ' 2. Changes in Fixed Assets Fixed assets increased from $13,395,025 to $14,058,032. B. Liabilities ' 1. Pension Plans General Information The Town participates in the New York Employees' Retirement System and the New ' York State Policemen's and Firemen's Retirement System. These are cost sharing multiple public employer retirement systems. Obligations of employers and employees to contribute and benefits to employees are governed by the New York ' State Retirement and Social Security Law (NYSRSSL). The systems offer 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. All benefits generally, vest after ten years of credited service. ' Page 31 The NYSRSSL provides that all participants in each system are jointly and severally liable for any actuarial unfunded amounts. Such amounts are collected through ' annual billings to all participating employers. Generally, all employees, except certain part-time employees, participate in the Systems. The Systems are noncontributory except for employees who joined the Employees' Retirement System after July 27, 1976 who contribute 3% of their salary. Employee contributions are deducted by employer's from employee's paychecks and are sent currently to the Employees' ' Retirement System. Employee Groups Covered ' Nearly all Town of Southold employees are eligible for membership in the systems. All employees employed in a full-time position after June 30, 1976 are mandatory members. The total payroll for all employees of the Town of Southold for fiscal year 1994 was $7,431,099, of which $4,334,628 was attributable to the Employees' Retirement System and $2,550,443 was attributable to the Policemen's and Firemen's Retirement System. Payments and Funding Status Through 1988, the Systems billed all participating employers by May 31 each year. ' Billings were based on salaries paid during the System's fiscal year which ended on March 31 of the previous calendar year, and in accordance with funding requirements determined by the System's actuary. Employers were required to remit in full by ' June 30. In 1989 and subsequent years, the System's billings have been based on Chapter 62 of ' the Laws of 1989 of the State of New York. This legislation requires participating employers to begin making payments on a current basis, while amortizing existing unpaid amounts relating to the System's fiscal years ending March 31, 1988 and 1989 ' (which otherwise were to have been paid on June 30, 1989 and 1990, respectively) over a 17 year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The Town of Southold elected to make the 1 full payment on December 15, 1993, by issuing serial bonds to replace this debt (See Note III(B)(3)). The actuarial cost method used by the System to determine the annual contributions from employees through March 31, 1990 was the aggregate cost method. Under this ' method the excess of the actuarial liabilities over the actuarial assets was funded by employees as a level percentage of salary over the current members' future working lifetimes. Effective April 1, 1990 the State legislature amended the Retirement and Social Security Law by enacting Chapter 210 Laws of 1990 which mandated a change to a Page 32 1 different actuarial funding method for the System. The System changed from the aggregate cost funding method to a modified projected unit credit method. This new method utilizes a rolling amortization period for differences between actuarial assets ' and actuarial accrued liabilities, of which approximately 17% of such differences are recognized each year in determining the funding amount. As a result of the legislated ' changes for the year ended March 31, 1994, ERS employer contributions were generally lower than would have been the case under the aggregate cost funding method. The anticipated future effect is that employer contributions will be, for a time, less than they would have been under the aggregate cost funding method. However, over the long-term, employer contributions are expected to be higher under the modified projected unit credit funding method than under the aggregate cost ' method. The legislation change from the aggregate funding method to the modified projected unit credit was found by a lower New York State Court to be unconstitutional. This decision was upheld by the State's highest court, the Court of Appeals. Consequently, the System returned to the aggregate method on April 1, 1994, using a four-year- phase-in in the ERS and immediate application in the PFRS. Contributions in ERS are capped at a percentage of payroll that increases each year during the phase-in as follows: 1994 0% 1995 1.5% ' 1996 3.0% 1997 4.5% 1998 Full Aggregate Cost ' Pursuant to Chapter 178 of the Laws of 1991, the State Legislature authorized local governments to make available a retirement incentive program with an estimated total cost of $362,080, of which $10,542 was charged to expenditures/expense in the governmental funds in the current fiscal year. The cost of the program is billed and paid over five years beginning December 15, 1992 and will include interest at 8.75%. The Pension Benefit Obligation (PBO) of credited projected benefits is a standardized disclosure measure of the actuarial present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of ' employees service to date. The retirement systems do not make separate measurements for individual employers. ' The PBO of credited projected benefits at March 31, 1994 for the Employee's ' Page 33 ' Retirement System, determined through an actuarial valuation performed as of that date, is $49.879 billion. The net assets available to pay benefits at that date is ' $50.835 billion. The Town's employer contribution requirement was less than 1% of total contributions required of all employers participating in this system. ' The PBO of credited projected benefits at March 31, 1994 for the Policemen's and Firemen's Retirement System determined through an actuarial valuation performed as of that date is $10.267 billion. The net assets available to pay benefits at that date is ' $9.287 billion. The-Town's employer contribution requirement was less than 1% of total contributions required of all employers participating in this system. ' Historical trend information showing the progress in accumulating sufficient assets to pay benefits when due is presented in the Annual Financial Report of the two systems. Additional detailed information concerning the systems may also be found in the ' Report. 2. Shod-Tenn Debt ' Liabilities for bond anticipation notes (BAN'S) are generally accounted for in the capital projects funds. Principal payments on BAN's must be made annually. State law requires that BAN'S issued for capital purposes be converted to long-term ' obligations within five years after the original issue date. However, BAN's issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions ' of principal are made. To Be Redeemed 1995 Interest Budget ' Description Amount Rate Appropriations Bonds Various Purposes $ 718,000 4.45 $143,600 $ 574,400 3. Long-Term Debt a. At December 31, 1994, the total outstanding indebtedness of the Town, excluding ' the above BAN's aggregated $6,420,000. Of this amount, $5,873,090 was subject to the constitutional debt limit and represented approximately 2.65% of its debt limit. ' b. Serial Bonds and Capital Notes - The Town borrows money in order to acquire land or equipment or construct buildings and improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers receiving the ' benefit of the capital assets. These long term liabilities, which are full faith and credit debt of the local government, are recorded in the General Long-Term Debt Account Group. The provision to be made in future budgets for capital indebtedness represents ' the amount exclusive of interest, authorized to be collected in future years from taxpayers and others for liquidation of the long-term liabilities. ' Page 34 ' c. Other Long-Term Debt - In addition to the above long-term debt, the local government had the following non-current liabilities: ' Due to New York State Department of Environmental Conservation (NYSDEC) - Represents the non-current portion of the liability due under the settlement in which all ' charges of operational violations at the Cutchogue landfill were dropped. Compensated Absences - Represents the value of earned and unused portion of the ' liability for compensated absences. d. Summary Long-Term Debt - The following is a summary of long-term liabilities ' outstanding at December 31, 1994 by fund type and account group: ' General Long Term Liabilily Debt Account Group Serial Bonds $6,420,000 ' Due to NYSDEC 650,000 ' Compensated Absences 1,857.014 Total Long-Term Debt $8,927,014 General-Long Term e. The following is a summary of changes in the long term liabilities for theP eriod ended December 31, 1994: ' Bonds and Due to Compensated Notes NYSDEC Absences ' Payable at beginning of $ 7,048,000 $ 1,795,465 Fiscal Year ' Additions 0 $ 650,000 Deletions 628.000 ' Payable at End of $ 6,420,000 $ 650,000 $ 1,857,014 Fiscal Year ' Additions and deletions to compensated absences are shown net since it is impracticable to determine these amounts separately. ' f. Long Term Debt Maturity Schedule - The following is a statement of serial bonds with corresponding maturity schedules: ' Page 3 5 Payable from: Special Revenue Fund Description: Fishers Island Ferry District ' Dated: August 1, 1977 Issue Amount: $ 589,000 Interest Rate: 5.9% Final Maturity Date: February 1, 1997 Balance as of December 31, 1994: $ 105,000 Payable from: General Fund, Special Revenue Fund Description: Various Purposes Dated: October 1, 1984 ' Issue Amount: $2,172,500 Interest Rate: 9.1% Final Maturity Date: April 1, 2005 ' Balance as of December 31, 1994: $1,310,000 Payable from: General Fund, Special Revenue Fund ' Description: Various Purposes Dated: February 15, 1991 Issue Amount: $2,708,500 ' Interest Rate: 6.375% Final Maturity Date: February 15, 2011 Balance as of December 31, 1994: $1,850,000 ' Payable from: n y General Fund, Special Revenue Fund ' Description: Various Purposes Dated: April 15, 1993 Issue Amount: $2,695,000 ' Interest Rate: 5.00% Final Maturity Date: February 15, 2012 Balance as of December 31, 1994: $2,525,000 tPayable from: General Fund, Special Revenue Fund, Special District Fund Description: Pension System ' Dated: October 1, 1993 Issue Amount: $ 678,000 Interest Rate: October 1, 1993 to October 1, 2001 - 6.000% ' October 1, 2001 to October 1, 2003 - 6.100% October 1, 2003 to October 1, 2005 - 6.125% Final Maturity Date: October 1, 2005 ' Balance as of December 31, 1994: $ 630,000 ' Page 36 g. The following table summarizes the Town's future debt service requirements for Serial Bonds as of December 31, 1994: Year Ending Principal Interest 1995 545,000 391,707 ' 1996 520,000 357,694 1997 495,000 325,276 ' 1998 410,000 295,764 1999 410,000 268,536 2000-2004 2,040,000 929,641 2005-2009 1,350,000 349,890 ' 2010-2012 650,000 46,500 ' h. The following table summarizes the Town's future payment requirements for the stipulation of settlement with the New York State Department of Environmental Conservation as of December 31, 1994: Year Ending Amount t1995 $ 200,000 1996 125,000 1997 65,000 1998 65,000 ' 1999 65,000 2000 65,000 ' 2001 65.000 Total $ 650,000 ' Page 37 C. Interfund Receivables and Payables Interfund receivables and payables at December 31, 1994 were as follows: ' Fund Interfund Interfund Receivables Pa, ams ' General Fund Whole Town 33,925 178 General Fund Part Town 178 14,612 Special Grant Fund 15,000 West Creek Imp. District 482 ' Capital Fund 4,268 ' Trust and Agency 482 45 Fishers Island Ferry District 58,487 Fishers Island Agency & Trust 0 58,487 Total Interfund 93,072 93,072 ' D. Fund Equity 1. Reserves The capital projects fund equity include 14 capital reserve funds established for varying purposes. ' E. Deferred Compensation Plan Employees of the Town may elect to participate in a Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. The plan, available to all ' employees, permits them to defer a portion of their salary until future years, usually after retirement. As of December 31, 1994, the market value of the assets of the plan totaled $304,536. Under the terms of the plan agreement, these monies are subject to the claims of the ' Town's general creditors. Accordingly, this amount is reflected as an Agency Fund asset along with a corresponding liability to the employees participating in the plan. Participating employees are general creditors of the Town with no preferential claim to ' deferred funds. ' Page 3 8 F. Lease Commitments and Leased Assets The Town leases property and equipment under operating leases. Total rental ' expenditures on such leases for the fiscal year ended December 31, 1994 were approximately $25,237. Future obligations over the primary terms of the Town's leases as of December 31, 1994 are as follows: Year Ended December 31 1995 20,716 1996 17,971 1997 14,281 1998 10,689 1999 10,689 2000 & thereafter 28.689 Total $ 103,035 VL Contingencies The Town has received grants which are subject to audit by agencies of the State and Federal Governments. Such audits may result in disallowances and a request for a return of funds to the federal and state governments. Based on past audits, the local government administration believes disallowances, if any, will be immaterial. VIL Other A. In the State Annual Update Document, three Road Improvement Districts are included ' in the Highway Fund Whole Town; in the audit report, these funds are included as Special Revenue Funds. B. The Town is the sponsor of a grant from the Federal Aviation Administration for airport improvements at Elizabeth Airfield. The Town has contracted with Calacerinos & Spina Engineers, P.C. to administer the grant. A copy of an audit report which includes a compliance audit is reviewed by the Town. These funds are shown in the audit report on the Schedule of Federal Assistance. ' Page 39