HomeMy WebLinkAbout2014Cutchogue Fire District
ANNUAL FINANCIAL REPORT
December 31, 2014
W.OMPANY
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT ........................................ A
ANNUAL FINANCIAL REPORT UPDATE DOCUMENT:
FINANCIAL SECTION ............................................... 1
SUPPLEMENTAL SECTION .......................................... 14
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT......... 28
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF ANNUAL FINANCIAL
REPORT UPDATE DOCUMENT PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS ...................................... 42
ff COWANY
COAV llY 1
437 Madison Avenue, 29th Floor
New York, NY 10022 • 212.962.4470
165 Orinoco Drive, Briglitwaters, NY 11718
631.665.7040 • Fax: 631.665.7014
15 South Bayles Avenue, Pon Washington, NY 11050
516.883.5510 0 Fax: 516.767.7438
A PROFESSIONAL CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS www.shechancpa.com
INDEPENDENT AUDITOR'S REPORT
To the Board of Fire Commissioners
Cutchogue, New York
Report on the Annual Financial Report Update Document (Financial Section)
We have audited the accompanying Annual Financial Report Update Document (Financial
Section) of Cutchogue Fire District, as of and for the year ended December 31, 2014, and the
related notes to the Annual Financial Report Update Document, as listed in the table of contents.
Management's Responsibility for the Annual Financial Report Update Document
Management is responsible for the preparation and fair presentation of the Annual Financial
Report Update Document in conformity with accounting practices prescribed or permitted by the
New York State Office of the State Comptroller (regulatory basis), which is a special purpose
framework of accounting other than United States of America generally accepted accounting
principles; this includes the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the Annual Financial Report Update Document that is
free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on the Annual Financial Report Update Document
based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the Annual Financial Report Update Document is free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the Annual Financial Report Update Document. The procedures selected depend
on the auditor's judgment, including the assessment of risks of material misstatement of the
Annual Financial Report Update Document, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Cutchogue Fire District's
FA
To the Board of Fire Commissioners
Cutchogue, New York
preparation and fair presentation of the Annual Financial Report Update Document in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Cutchogue Fire District's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the Annual Financial Report
Update Document.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
As described more fully in Note 1, the Cutchogue Fire District prepares its Annual Financial
Report Update Document using accounting practices prescribed or permitted by the New York
State Office of the State Comptroller, which is a special purpose framework of accounting other
than accounting principles generally accepted in the United States of America. The effects on the
Annual Financial Report Update Document of the variances between these regulatory accounting
practices and accounting principles generally accepted in the United States of America, although
not reasonably determinable, are presumed to be material.
Opinions
In our opinion, the Annual Financial Report Update Document (Financial Section) referred to
above presents fairly, in all material respects, the assets, liabilities and fund balances of
Cutchogue Fire District, as of December 31, 2014 and the revenues it received and expenditures
made for the year then ended in conformity with the basis of accounting described in Note 1.
Our audits were conducted for the purpose of forming opinions on the Annual Financial Report
Update Document (Financial Section) taken as a whole. The Supplemental Section listed on page
two of the Annual Financial Report Update Document is presented for purposes of additional
analysis and is not a required part of the basic financial statements.
The information, except for the Fire District Questionnaire, has not been subjected to the
auditing procedures applied in the audit of the Annual Financial Report Update Document and,
accordingly, we express no opinion on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 27, 2015, on our consideration of Cutchogue Fire District's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, grant agreements and other matters. The purpose of that report is to
W.OMPANY
To the Board of Fire Commissioners
Cutchogue, New York
describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering Cutchogue Fire District's internal control
over financial reporting and compliance.
<S/ -)
7- (/�ZO7
Brightwaters, New York
February 27, 2015
WYl1UmANv
Ir
All Numbers in This Report
Have Been Rounded To
The Nearest Dollar
ANNUAL FINANCIAL REPORT
UPDATE DOCUMENT
For The
FIRE DISTRICT of Cutchogue
County of Suffolk
For the Fiscal Year Ended 12/31/2014
*************************************************************************************************************************************
AUTHORIZATION
ARTICLE 3, SECTION 30 of the GENERAL MUNICPAL LAW.-
1.
AW
1. ***Every Municipal Corporation *** shall annually make a report of its
financial condition to the Comptroller. Such report shall be made by the
Chief Fiscal Officer of such Municipal Corporation ***
5. All reports shall be certified by the officer making the same and shall
be filed with the Comptroller *** It shall be the duty of the incumbent
officer at the time such reports are required to be filed with the
Comptroller to file such report ***
State of NEW YORK
Office of The State Comptroller
Division of Local Government and School Accountability
Albany, New York 12236
Page 1
FIRE DISTRICT OF Cutchogue
*** FINANCIAL SECTION ***
Financial Information for the following funds and account groups are included in the Annual Financial Report filed
by your government for the fiscal year ended 2013 and has been used by the OSC as the basis for preparing this
update document for the fiscal year ended 2014:
(A) GENERAL
(H) CAPITAL PROJECTS
(TA) AGENCY
(W) GENERAL LONG-TERM DEBT
All amounts included in this update document for 2013 represent data filed by your government with
OSC as reviewed and adjusted where necessary.
*** SUPPLEMENTAL SECTION ***
The Supplemental Section includes the following sections:
1) Statement of Indebtedness
2) Schedule of Time Deposits and Investments
3) Bank Reconciliation
4) Local Government Questionnaire
5) Schedule of Employee and. Retiree Benefits
6) Schedule of Energy Costs and Consumption
7) Schedule of Other Post Employment Benefits (OPEB)
All numbers in this report will be rounded to the nearest dollar.
Page 2
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(A) GENERAL
Balance Sheet
Assets
Cash 379,809 A200 409,807
.�,r.t A.^•-�.x.>e.: ° e.:ra 9s... a'�, 3';'*�aa, t,:a•-, u*�`.�a,r'i'x e'er` ` `,.,e¢"�'''. rwry' T'ti";;y�r"%` * {x :.;.:—aroa„,-•"" �- `�' a." t'`kx-'°''" °-?
Cash Special Reserves 1,598,098 A230 1,751,390
Page 3
OSC Municipality Code 471179002500
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(A) GENERAL
Balance Sheet
0000escripti n; #, �6fi 3' . r� < ,tdpGoer `vJJpp
Accounts Payable 29,570 A600 29,562
Accrued Liabilities �
13,999 A601 15,675
Deferred Inflows of Resources
Deferred Inflow of Resources A691 1,000
Fund Balance
Capital Reserve 1,598,098 A878 1,751,390
Assigned Appropriated Fund Balance A914
Assigned Unappropriated Fund Balance 38,108 A915 44,631
Unassigned Fund Balance 298,132 A917 318,939
Page 4 OSC Municipality Code 471179002500
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(A) GENERAL
Results of Operation
Revenues
Real Property Taxes 1,230,742 A1001 1,321,108
' '• 4t`^•„ ,�;;.. v �z'� �a .. �, x x'iss^x �r�k. ^^* � a'�r �' '�:ra �", F2^�'rrY^z'�,.:�=�r,-s�^:x 4 �"S"sx ,*t €"�`��1^—x*e�a��;g.:r ^�;
TOTAL ReaI'Peoperty Taxes zR iE= r k 1,230;742 .ti1;321>;108b
z. .,�k,'knM sl.s.. .++_:._u -v., � ,4, n..,. ..n L.t,u'w...xi„_n.....J.x„askE.e,...-ti$.�.mi3"w,t �rw�.::ti:.�,.L,�..r:.:..`'�ev..•.�:�.w.�h..�'..;ti �c�,a....a..M.�.ir�3�9. .3i6,a...a. Pa,�...r� 1sk'zt�z.x �s4..t,^',x..+u>. a°l..-u..m9 mu'mau..SaLre...,.A.za:.a.,#.'*.5�'�La't
Interest And Earnings 5,285 A2401 5,284
Rental of Real Property 225 A2410 1,000
"-�- nl?. f r F 7=.:x � .n �, T T �'. t rs•3 wY + �..v �'-c'n �,� 7 �<�:��3 .a b^e�`�"'.�zz�-r'v.4'�a-n ,G; �..-ragt r3+'^!�'T^w+c}"5.i*'
,....m.��.,u........:..:..w ... �...... .. .._._:a�_..„..��.<,_.1�...r..,3Y.......w�Pz..:..�ta�....�x�.'.1.s�.�u+i.3o���_-,..N..S.;�,..uyr.,.,..ia.�u����-'.:.'�,....Sys.iJ�.w.��:,�:.&tr�,..,.....-,u..:•%:�,..�R�r-..�it..�.w�.r.,i..=��:.
Sales of Equipment 7,050 A2665 509
•.r�.Frt-.:r y .:-�°. .�...:s..,-x t ,.:, .. !4 lu ;ni:4;:`;;:.. �,'S'�.. t"�•v y';mt?'� nf;^}"",�"�.,,^ x`Yh^;�,. r t� � +a. r; n:� r K �rrv.+*tr ,, sn rv,.,�. .
s,..�.a..,...�,..u_:�,rz+,sdsll�srt: � �ia.�..�..b.�.....sa��.,as. ' .,.a,�.�.. 3 ^t:����^`u�..�r�,.,�;wx ..«t�``�:s�:i°�7�cv'.a.•k���.�.`�,u::�dv��.�.,�.c�.#.:.rsi;;wt�`
Refunds of Prior Year's Expenditures 2 A2701 360
Gifts And Donations 75 A2705
Unclassified (specify) 45 A2770
TOTAL Mis ellaneo s Local Sources � ; � ��' s ���” ���+ �� � c' t �- •��� ��.�� ,� ;� -��;�f �"�122 `ti�"��x � �k� �� ���.� �' �380.a
St Aid Emergency Disaster Assistance A3960
Fed Aid, Emergency Disaster Assistance 6,256 A4960
ke
T07AL Revenues K 3f r,, r t <f` "`a
ea 1 249 680Y x
.G....�.a..lz...s.v...n.✓..i,i.u..a..bw...,..a.,.-u.`,brf...w.
Page 5 OSC Municipality Code 471179002500
uaFIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2O14
KVoswsPmL
Results of Operation
Expenditures
Payment of Mta Payroll Tax,contr Expend Al 9804
Fire, Pers Gem
184,002
A341 01
197,407
Fire, Equip & Cap Outlay
140,542
A34102
125,207
Fire, Cvnt,Expend
409.386
834104
384.772
State Retirement System
21.e58
890108
20.242
Local Pension Fund, Emp|an#a
288.898
AnOuno
3*3.711
Social Security, Employer Cont
14.076
x90808
15.136
Worker's Compensation, Emp|onftn
47.906
a90408
48.077
Unemployment Insurance, Emn/anMo
1.586
x90508
1.5e3
Disability Insurance, smp|anfto
326
A90558
359
Hospital & Medical (dontoVIns, smp/Bnft
10.245
AaoVou
10.845
T? Rif
2�2UZ CO. -
14
Page O8CMunicipality Code 47117SOO25UO
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(A) GENERAL
Analysis of Changes in Fund Balance
�,#", w ut,, ' ur
1R 71e§Q'=1ji 10' ' #' •w .. , - w� .
Analysis of Changes in Fund Balance
Fund Balance - Beginning of Year 1,803,343 A8021 1,934,338
Restated Fund Balance - Beg of Year 1,803,343 A8022 1,934,338
ADD - REVENUES AND OTHER SOURCES 1,249,680 1,328,261
DEDUCT- EXPENDITURES AND OTHER USES 1,118,685 1,147,639
Fund Balance - End of Year 1,934,338 A8029 2,114,960
Page 7 OSC Municipality Code 471179002500
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2O14
Budget Summary
Estimated Revenues
Est Rev ' Real Property Taxes 1,321.100 Al 049N 1,349,633
Est Rev - Use of Money And Property 1,000 A2499N 1,000
Appropriated Fund Balance 0 A599N
Page O8CMunicipality Code 47117SOU25OO
•
•
(A) GENERAL
Budget Summary
,Cgde�,Descr��o,�
Appropriations
•
App - Public Safety
N
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
820,600 A3999N 803,633
App - Employee Benefits 401,500 A9199N 447,000
,;:,n:,., � F ., .e;31. sg .: �.�.,,,w �` r � "`� 4%r k �� t'.R M1 "�"—'�"... �P.'?'x f"4Y�s'+��. �' k �.�'�`,�'.ci „r � '� §'� '�`"� .a✓�"^�t pa !� ;�.rms'
T_OTA��A
App - Interfund Transfer 100,000 A9999N 100,000
Page 9 OSC Municipality Code 471179002500
Balance Sheet
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
Page 10
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
Balance Sheet
010�.Ption � fi � , r,.:. � � T, „IN
Page 11
is
I*
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(H) CAPITAL PROJECTS
Results of Operation
Other Sources
Installment Purchase Debt H5785 71,341
`I1,341
a.,.x. �.
�� :d:ar;% ,krat .moi»x' i �' r �}"� d6 ,�: a § a'�' •," x .'��k'�,£. 3< � i � S e� x'�'.: k � �r "§b""a'r"�-yu`"ea ,� � ,� `�' + '�'. N� "a'�e du a31-Ti`�"?<, r ^x ,-�r^,^.�^'>»-,�rs
C�.N.... �a�v ..... ..._ . ....,a .... �-,.�r_s; �1, `"�,��... �...�,u,.. v.. ..��.�` .. .. a_,k...,.4�5 w=s•� a1.�w�c.,aax.�n��s�.k,,..�.:vc<.�?,d:�lrc�,.�i�s';{�� � �r.z;:u_.Sut`��.+, �..+�`r..�t�s�.a.�a
.GM i gy zr T'. . a �,q'iT"but'D64'-'k
1
Page 12
OSC Municipality Code 471179002500
(H) CAPITAL PROJECTS
Results of Operation
Expenditures
Fire, Equip & Cap Outlay
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
H34102 71,341
Page 13 OSC Municipality Code 471179002500
(H) CAPITAL PROJECTS
Analysis of Changes in Fund Balance
Analysis of Changes in Fund Balance
Fund Balance - Beginning of Year
Restated Fund Balance - Beg of Year
ADD - REVENUES AND OTHER SOURCES
DEDUCT - EXPENDITURES AND OTHER USES
Fund Balance - End of Year
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
H8021
H8022
H8029
71,341
71,341
Page 14 OSC Municipality Code 471179002500
(TA) AGENCY
Balance Sheet
Assets
Service Award Program Assets
uaFIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2D14
Page 15
1.175,414 lA461 1,425,242
OGCMunicipality Code 471179OO25OO
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(TA) AGENCY
Balance Sheet
OfiB��eSC[ p IOJ,� :`t^£"hxm,. t ,��"�`{a�',us �'%a ., ���t "^"';.��".� e "i�on� 'S.,`t�y,r�?:i�'""`�z dna � a�d'���e#�� �" ..� ," O1 ,.�, �, t,� COLI@�'"
.Y
10, �.k , tx ,.� s �.., A . k _ �d .. xr P, ' as...an.. �>
Service Awards 1,175,414 TA 13 1,425,242
Page 16 OSC Municipality Code 471179002500
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(W) GENERAL LONG-TERM DEBT
Balance Sheet
90:1-0 tlo.X r , a ^ ' s ' `¢kgI 41. � . pd a
,.fix„
Assets
Total Non -Current Govt Liabilities
No
to
r
W129 71,341
Page 17 OSC Municipality Code 471179002500
I•
Cutchogue FIRE DISTRICT
Annual Update Document
For the Fiscal Year Ending 2014
(W) GENERAL LONG-TERM DEBT
Balance Sheet
VNe G'S 11 0�-"e n
Installment Purchase Debt wRaF 71 saa
Page 18 OSC Municipality Code 471179002500
v111cc U, u,c JLatU �UinNuvcrol
%—ULU11OgUC Clift, "10tH//./
Statement of Indebtedness
For the Fiscal Year Ending 2014
02/23/2015
County of: Suffolk
Municipal Code: 471179002500
First Debt Cops Comp Date of Date of Int.
Year Code Description Flag Flag Issue Maturity Rate Var?
Amt. Ong.
Issued
O/S Beg.
of Year
Paid Redeemed
Dur. Year Bond Proc.
Prior Yr. Accreted
Adjust. Interest
O/S End
of Year
2014 IPC E EMS equipment 11/18/2014 12/18/2019 1.90%
$71,341
$0
$0
$0
$71,341
'otal for Type/Exempt Status - Sums Issued Amts only made in AFR Year
$71,341
$0
$0 $0
$0 $0
$71,341
AFR Year Total for All Debt Types - Sums Issued Amts only made in AFR Year $71,341
Pagl "9
$0 $0 $0
$0 $0 $71,341
Cutchogue FIRE DISTRICT
Schedule of Time Deposits and Investments
For the Fiscal Year Ending 2014
CASH:
On Hand
Demand Deposits
Time Deposits
Total
COLLATERAL:
- FDIC Insurance
Collateralized with securities held in
possession of municipality or its agent
Total
INVESTMENTS:
- Securities (450)
Book Value (cost)
Market Value at Balance Sheet Date
Collateralized with securities held in
possession of municipality or its agent
- Repurchase Agreements (451)
Book Value (cost)
Market Value at Balance Sheet Date
Collateralized with securities held in
possession of municipality or its agent
r
r
M
EDP Code
Amount
9Z2001
9Z2011
$2,165,983.00
9Z2021
$2,165,983.00
9Z2014
$250,000.00
9Z2014A
$2,013,314.00
$2,263,314.00
9Z4501
9Z4502
9Z4504A
9Z4511
9Z4512
9Z4514A
Page 20 OSC Municipality Code 471179002500
M
a
r0
i•
Cutchogue FIRE DISTRICT
Bank Reconciliation
For the Fiscal Year Ending 2014
Include All Checking, Savings and C. D. Accounts
Add:
Less:
Bank
Bank Deposit
Account
Outstanding
Number
Balance In Transit
*****-2534
~
*****-2609
$32,032
*****-2617
$4,786
*****-2591
$369,561
*****-6570
$0
$369,561
r0
i•
Cutchogue FIRE DISTRICT
Bank Reconciliation
For the Fiscal Year Ending 2014
Include All Checking, Savings and C. D. Accounts
Add:
Less:
Adjusted
Bank Deposit
Outstanding
Bank
Balance In Transit
Checks
Balance
$32,032
$0
$4,786
$27,246
$369,561
$0
$0
$369,561
$933,871
$0
$0
$933,871
$447,519
$0
$0
$447,519
$370,000
$0
$0
$370,000
$13,000
$0
$0
$13,000
Total Adjusted Bank Balance
$2,161,197
Petty Cash
$.00
Adjustments
$.00
Total Cash
9ZCASH *
$2,161,197
Total Cash Balance All Funds
9ZCASHB *
$2,161,197
* Must be equal
Page 21 OSC Municipality Code 471179002500
Cutchogue FIRE DISTRICT
Fire District Questionnaire
For the Fiscal Year Ending 2014
Response
1) Has your district adopted a written procurement prolicy and is it complied with? Y
2) Has your district contracted to have an independent audit of its financial statements? Y
If not, has the Board of Fire Commissioners performed an internal audit of the
Treasurer's records and reports?
3) Does your district have a written travel policy and is it complied with? Y
4) Are monthly bank reconciliations performed? Y
5) What is your district's statutory spending limitation margin (amount) for the next fiscal $1,135,344
6) Does your district have a Length of Service Award Program
(LOSAP) for volunteer firefighters?
If so, how are the LOSAP funds invested?
Marketable Securities N
Annuities Y
Life Insurance Y
Other (describe)
7) Has your Fire District adopted an investment policy as required by General Municipal Y
Law, Section 39?
Page 22
Cutchogue FIRE DISTRICT
Employee and Retiree Benefits
For the Fiscal Year Ending 2014
Total Full Time Employees:
2
Total Part Time Employees:
13
Account
Code
Description
Total
Expenditures
(All Funds)
# of Full
Time
Employees
# of Part
Time
Employees
# of Retirees
90108
State Retirement System
$20,242.0
90158
Police and Fire Retirement
90258
Local Pension Fund
$343,711.0
90308
Social Security
$15,136.00
2
1
90408
Worker's Compensation
Insurance
$48,377.00
2
1
90458
Life Insurance
90508
Unemployment Insurance
$1,583.00
2
1
90558
Disability Insurance
$359.00
2
1
90608
Hospital and Medical
(Dental) Insurance
$10,845.0
2
90708
Union Welfare Benefits
9085
Supplemental Benefit Payment to
Disabled Fire Fighters
9189
Other Employee Benefits
Total
$440,253.00
Computed Total From Financial
Section (comparative purposes only)
$440,253.0
Page 23 OSC Municipality 471179002500
Cutchogue FIRE DISTRICT
Energy Costs and Consumption
For the Fiscal Year Ending 2014
Energy Type Total Total Volume Units Of Alternative
Expenditures Measure Units Of
Measure
Gasoline
$13,57
4,20
gallons
Diesel Fuel
$5,77
1,71
gallons
Fuel Oil
Igallons
Natural Gas
$8,55
7,04
cubic feet herms
Electricity
$22,13
112,812
kilowatt-hours
Foal
tons
Page 24 OSC Municipality 471179002500
Cutchogue FIRE DISTRICT
Schedule of Other Post Employment Benefits (OPER)
For the Fiscal Year Ending 2014
Annual OPEB Cost and Net OPEB Obligation
1. Type of Other Post Employment Benefits Plan
2. Annual Required Contribution(ARC)
3. Interest on Net OPEB Obligation
4. Adjustment to Annual Required Contribution
5. Annual OPEB Expense
6. Less: Actual Contribution Made
7. Increase in Net OPEB Obligation
8. Net OPEB Obligation - beginning of year
9. Net OPEB Obligation - end of year
10. Total Other Post Employment Benefits as reported in Accounts 683 in
Financial Section, Current Fiscal Year
11. Percentage of Annual OPEB Cost Contributed (Actual Contribution
Made/Annual OPEB Cost)
Funded Status and Funding Process
12. Actuarial Accrued Liability(AAL)
13. Less: Actuarial Value of Plan Assets
14. Unfunded Actuarial Accrued Liability(UAAL)
15. Funded Ratio(Actuarial Value of Plan Assets/AAL)
16. Annual Covered Payroll (of active employees covered by the plan)
17. UAAL as Percentage of Annual Covered Payroll
Other OPEB Information
18. Date of most recent actuarial valuation
19. Actuarial method used
20. Assumed rate of return on investments discount rate
21. Amortization period of UAAL(in years)
.00%
Page 25 OSC Municipality 471179002500
Ir�
FIRE DISTRICT DEMOGRAPHICS
Postal or Mailina Address:
260 New Suffolk Road
Cutchogue NY 11935
Street Address or PO Box
City State Zip
(631)734-6907
1(631 ) 734-7079
Fire District Telephone Number
Fire District Fax Number
cutfdtreas@optonline.net
www.cutchoguefiredept.org
Official Email Address
Website
Physical Address: (If Different From Postal Address)
Street Address
Peter J. Zwerlein
Name
260 New Suffolk Road
Street Address or PO Box
631)734-6907
Telephone Number
cutfdtreas@optonline.net
Email Address
James Fogarty, Jr.
Name
260 New Suffolk Road
Street Address or PO Box
(631)734-6907
Telephone Number
cutfdtreas@optonline.net
Email Address
City
BOARD DEMOGRAPHICS
CHIEF FISCAL OFFICER
State Zip
Treasurer
Title
Cutchogue NY 11935
City State Zip
(631)734-7079
Fax Number
12/31 /2015
Term End Date
CHAIRMAN OF THE BOARD
Commissioner
Title
Cutchogue NY 11935
City State Zip
(631)734-7079
Fax Number
12/31/2015
Term End Date
I, JPeter J. Zwerlein hereby certify that I am the Chief Fiscal Officer of the
Cutchogue Fire District , and that the information provided in the annual
financial report of the Cutchogue Fire District , for the fiscal year ended
12/31/2014 . , is true and correct to the best of my knowledge and belief. By entering the personal
identification number assigned by the Office of the State Comptroller to me as the Chief Fiscal Officer
of the Cutchogue Fire District , and adopted by me as my signature for
use in conjunction with the filing of the Cutchogue Fire District 's annual
financial report, I am evidencing my express intent to authenticate my certification of the
Cutchogue Fire District 's annual financial report report for the fiscal year
ended 12/31/2014 and filed by means of electronic data transmission.
02/23/2015
Name of Report Preparer Personal Identification Number Date
if different than Chief Fiscal Officer of Chief Fiscal Officer
Page 26
Cutchogue FIRE DISTRICT
Financial Comments
For the Fiscal Year Ending 2014
Page 27
I (J
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
1. Summary of significant accounting policies:
The Annual Financial Report Update Document (AUD) of the Cutchogue Fire District
(the District), as of and for the year ended December 31, 2014 has been prepared in
conformity with accounting practices prescribed or permitted by the New York State
Office of the State Comptroller (regulatory basis), which is a special purpose framework
of accounting other than U.S. generally accepted accounting principles.
Financial reporting entity: The District is a governmental entity that provides fire
protection to the local community. The District receives most of its funding from
property taxes.
The District is governed by laws of the State of New York. The Board of Fire
Commissioners is the legislative body responsible for the overall operation of the
District. All activities and functions performed for the District are its direct responsibility.
The Treasurer serves as Chief Fiscal Officer of the District.
Basis of presentation: The AUD provides information about the District's funds,
including fiduciary funds. The accounts of the District are organized on the basis of
funds, each of which is considered a separate accounting entity. The operations of each
fund are segregated for the purpose of carrying on specific activities or attaining certain
objectives in accordance with special regulations, restrictions or limitations. The
following fund types are used:
Governmental:
General Fund
The General Fund is the principal operating fund of the District and is used to account
for all financial resources except those required to be accounted for in another fund.
Debt service is also accounted for in the General Fund.
Equipment Reserve Fund
The Equipment Reserve Fund is used to account for and report financial resources to
be used for the acquisition of equipment needed by the District.
Building Reserve Fund
The Building Reserve Fund is used to account for and report financial resources to be
used for the acquisition, construction or renovation of major capital facilities.
-28-
PRrnAAPAATV
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
1. Summary of significant accounting policies (continued):
Governmental (continued):
For AUD purposes, these funds are all combined and shown as the General Fund.
Fiduciary Fund
Fiduciary funds are used to account for assets held by the District in a trustee or custodial
capacity. The District utilizes the following fund:
Agency Fund
The Agency Fund is used to account for and report assets held by the District in the
capacity of trustee, custodian or agent for individuals. Agency funds are custodial in
nature and do not involve measurement of results of operations.
Basis of accounting: The accompanying AUD has been prepared on the regulatory basis
of accounting using the current financial resources measurement focus. Revenues are
recognized when measurable and available. "Available" means collectible within the
current period or within 60 days after year end. Expenditures are generally recognized
under the modified accrual basis of accounting when the related liability is incurred. The
' exception to this general rule is that principal and interest on general obligation long-term
debt, if any, is recognized when due.
Cash and cash equivalents: Cash and cash equivalents include demand deposits and
temporary investments with original maturities of three months or less from the date of
acquisition.
Interfund transfers: The operations of the District give rise to certain transactions
between funds, including transfers of expenditures and revenues to provide services and
construct assets. This is either by budget, Board resolution, permissive referendum or
mandatory referendum.
Encumbrances: Encumbrance accounting is used for budget control and monitoring
purposes and is -reported as part of the governmental funds. Under this method, purchase
orders, contracts and other commitments for the expenditures of monies are recorded to
reserve applicable appropriations. Outstanding encumbrances as of year end are
presented as assigned unappropriated fund balance and do not represent expenditures or
liabilities. These commitments will be honored in the subsequent period. Related
expenditures are recognized at that time, as the liability is incurred or the commitment is
paid.
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PR rn A w A T%Tv
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
1. Summary of significant accounting policies (continued):
Fund balance: In accordance with Governmental Accounting Standards Board (GASB)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions,
(GASB 54), GASB Statement 54, fund balance is broken down into five different
classifications: non -spendable, restricted, committed, assigned and unassigned.
Non -spendable consists of assets that are inherently non -spendable in the current period
either because of their form or because they must be maintained intact, including prepaid
items, inventories, long-term portions of loan receivable, financial assets held for resale
and principal of endowments.
Restricted consists of amounts that are subject to externally enforceable legal purpose
restrictions imposed by creditors, grantors, contributors or laws and regulations of other
governments or through constitutional provisions or enabling legislation.
Committed consists of amounts that are subject to a purpose constraint imposed by a
formal action of the government's highest level of decision-making authority before the
end of the fiscal year and that require the same level of formal action to remove the
constraint. The Board of Fire Commissioners is the decision-making authority that can,
by Board resolution, prior to the end of the fiscal year, commit fund balance.
Assigned consists of amounts that are subject to a purpose constraint that represents an
intended use established by the government's highest level of decision-making authority
or by their designated body or official. The purpose of the assignment must be narrower
than the purpose of the General Fund and in funds other than the General Fund, assigned
fund balance represents the residual amount of fund balance. The Board of Fire
Commissioners, by Board resolution, can authorize the Treasurer to assign fund balance.
Unassigned represents the residual classification for the government's General Fund and
could report a surplus or deficit. In funds other than the General Fund, the unassigned
classification should be used only to report a deficit balance resulting from overspending
for specific purposes for which amounts had been restricted, committed or assigned.
-30-
i'MAPAnry
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
1. Summary of significant accounting policies (continued):
Fund balance (continued):
When resources are available from multiple classifications, the District spends funds in
the following order:
Restricted amounts are deemed to have been spent when an expenditure is
incurred for purposes for which both restricted and unrestricted (committed,
assigned or unassigned) amounts are available.
• Within unrestricted fund balance, expenditures are deemed to be spent first from
committed amounts, followed by assigned amounts and then unassigned amounts
when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.
Real property taxes: All real property assessments are made by the Town of Southold.
Real property tax payments are due in two equal installments; the first half payable on
December 1 (lien and levy date) preceding the year for which the same is levied and the
second half payable May 10, with the first half payable without penalty to January 10 and
the second half payable without penalty to May 31. After May 31, all taxes must be paid
,
to Suffolk County Treasurer with a 5% penalty charge and interest at the rate of 1% per
month from February 1.
The Town of Southold Receiver of Taxes collects all real estate taxes for the District.
The Town of Southold Receiver of Taxes distributes the tax collections to the District.
All payments made to the District are made in the year for which the tax has been levied.
The Town of Southold Receiver of Taxes turns over uncollected items to the Suffolk
County Treasurer who continues the collection of these items. Responsibility for the
collection of unpaid taxes rests with Suffolk County.
In June 2011, New York State passed Chapter 97 of the Laws of 2011 (Tax Cap Law).
This law applies to all local governments in New York State. The Tax Cap Law restricts
the amount of real property taxes that may be levied by the District in a particular year,
beginning with the 2012 - 2013 fiscal year. The growth in annual levy is limited to the
lesser of 2% or annual change in the national unadjusted Consumer Price Index for All
Urban Consumers - All Items (CPI -U), subject to certain exceptions and adjustments.
-31-
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
1. Summary of significant accounting policies (continued):
Budgetary data: The District prepares an operating budget for the General Fund each
year. The budget is adopted by the Board of Fire Commissioners as its final budget for
the coming year as it relates to total spending. The District can adjust the budget as
needed by transferring certain budgeted amounts between accounts. The budget is not
subject to referendum. All budget appropriations lapse at the end of each year.
Use of estimates: The preparation of the AUD in conformity with the regulatory basis of
accounting requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
2. Deposits with financial institutions and investments:
The District's investment policies are governed by state statutes and District policy.
Resources must be deposited in Federal Deposit Insurance Corporation (FDIC) insured
commercial banks or trust companies located within the state. Permissible investments
where the payment and interest are guaranteed by the United States of America and
includes special time deposit accounts, certificates of deposit, obligations of the United
States of America, obligations guaranteed by agencies of the United States of America
and obligations of the State of New York. Collateral is required for demand and time
deposits and certificates of deposit not covered by FDIC insurance.
Custodial credit risk is the risk that in the event of a bank failure, the District's deposits
may not be returned to it. The District's risk exposure can be categorized as follows:
1. Insured by FDIC insurance.
2. Collateralized by securities held by the pledging financial institution's trust
department or agent, but not in the District's name.
3. Collateralized by securities held by the pledging financial institution, but not
in the District's name.
4. Uncollateralized.
The District's deposits held by the banks are categorized, based on the above criteria, as
follows:
Category
Amount
1 •
$ 250,000
2.
2,013,314
3.
_
4.
_
Total
$2,263,314
-32
Pirnnrtnerav
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
2. Deposits with financial institutions and investments (continued):
The District did not have any investments at year end or during the year. Consequently,
the District was not exposed to any material interest rate risk.
3. Long-term liabilities:
Long-term liability activity for the year ended December 31, 2014 was as follows:
Beginning Ending
Balance Additions Reductions Balance
Installment purchase $ - $ 71,341 $ - $ 71,341
Total 71341 $-
71341
Emergency Medical Service (EMS) installment lease: In 2014, the District entered
into a 5 year lease purchase financing agreement with U.S. Bank Equipment Finance for
the purchase of EMS equipment. The value of the equipment at the inception of the lease
was $71,341. Interest and principal payments are being provided for in the General Fund.
Interest is at an annual rate of 1.90%.
Maturities of long-term indebtedness, principal and interest, at December 31, 2014, are as
follows:
EMS Equipment installment lease:
Due in Fiscal Year Ended
Principal
Interest
Total
2015
$13,749
$1,195
$14,944
2016
14,004
940
14,944
2017
14,263
681
14,944
2018
14,528
417
14,945
2019
14,797
147
14,944
71 341
3 380
74 721
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PdrnAmAxTvN
C
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
4. Pension Plan:
Plan description: The District participates in the New York State and Local Employees'
Retirement System (ERS). This is a cost-sharing, multiple -employer retirement system.
The System provides retirement benefits as well as death and disability benefits.
Obligations of employers and employees to contribute and benefits to employees are
governed by the New York State Retirement and Social Security Law (NYSRSSL). As
set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller)
serves as sole trustee and administrative head of the System. The Comptroller shall adopt
and may amend rules and regulations for the administration and transaction of the
business of the System and for the custody and control of their funds. The System issues
a publicly available financial report that includes financial statements and required
supplementary information. That report may be found at
http://www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the
New York State and Local Employees' Retirement Systems, 110 State Street, Albany,
New York 12244.
Funding policy: The System is non-contributory except for employees who joined the
ERS on or after July 27, 1976 who generally contribute 3% of their salary for the first 10
years of membership and employees who joined on or after January 1, 2010 (ERS) who
generally contribute between 3% of their salary for the entire length of service, and on or
after April 1, 2012 (ERS) who generally contribute between 3% and 6% (based on annual
wage) for the entire length of service.
Under the authority of the NYSRSSL, the Comptroller annually certifies the actuarially
determined rates expressed used in computing the employers' contributions based on
salaries paid during the System's fiscal year ending March 31. Contributions for the
current year and two preceding years were equal to 100% of the contributions required
and were as follows:
Year Ending December 31, Amount
2014
$20,242
2013
21,658
2012
18,064
-34-
PdrnA4PAATv
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
4. Pension Plan (continued):
Funding Policy (continued):
Chapter 57 of the Laws of 2013 of the State of New York was enacted that allows local
employers to amortize a portion of their retirement bill for up to 12 years in accordance
with the following stipulations:
■ The maximum amount an employer can amortize is the difference between the
normal annual contribution (total bill, excluding payments for deficiency, group
life, previous amortizations, incentive costs and prior year adjustments) and the
graded contribution.
■ For subsequent State fiscal years (SFYs), the graded rate will increase or decrease
by up to one-half of one percent depending on the gap between the increase or
decrease in the System's average rate and the previous graded rate.
■ The interest rate will be set annually and will be comparable to a 12 year U.S.
Treasury Bond plus 1 percent.
■ For subsequent SFYs in which the System's average rates are lower than the
graded rates, the employer will be required to pay the graded rate. Any additional
contributions made will first be used to pay off existing amortizations and then
any excess will be deposited into a reserve account and will be sued to offset
future increases in contribution rates.
This law requires participating employers to make payments on a current basis, while
amortizing existing unpaid amounts relating to the System's fiscal years when the local
employer opts to participate in the program.
The District's total pension liability was paid as of December 31, 2014.
5. Length of Service Award Program (LOSAP):
The District's AUD is for the year ended December 31, 2014. However, the information
contained in this note is based on information for the LOSAP for the plan year ending on
February 28, 2015, which is the most recent plan year for which complete information is
available. The funding detail is for the period March 1, 2013 through February 28, 2014.
The District established a defined benefit LOSAP for the active volunteer firefighters of
the District. The Program took effect on March 1, 1993. The Program was established
pursuant to Article 11-A of the General Municipal Law. The Program provides
municipally funded pension -like benefits to facilitate the recruitment and retention of
active volunteer firefighters. The District is the sponsor of the Program.
-35-
firnA PAW
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
5. Length of Service Award Program (LOSAP) (continued):
Program description
Participation, vesting and service credit: Active volunteer firefighters who have
reached the age of 17 and who have completed their probationary period are eligible to
participate in the Program. Participants acquire a nonforfeitable right to a service award
after being credited with 5 years of firefighting service or upon attaining the Program's
entitlement age. The Program's entitlement age is age 65. In general, an active volunteer
firefighter is credited with a year of firefighting service for each calendar year after the
establishment of the Program in which he or she accumulates 50 points. Points are
t granted for the performance of certain activities in accordance with a system established
by the sponsor on the basis of a statutory list of activities and point values. A participant
may also receive credit for 5 years of firefighting service rendered prior to the
establishment of the Program.
Benefits: A participant's benefit under the Program is the actuarial equivalent of a
monthly payment for life equal to $20 multiplied by the person's total number of years of
firefighting service. The number of years of firefighting service used to compute the
benefit cannot exceed 30. Benefits are not payable until the first day of the month
coincident with or following the attainment of age 65 and completion of 1 year of plan
participation. Except in the case of disability or death, benefits are payable when a
participant reaches entitlement age. The Program provides statutorily mandated death and
disability benefits.
Fiduciary investment and control: Service credit is determined by the Governing
Board of the sponsor, based on information certified to the Governing Board by each fire
company having members who participate in the Program. Each fire company must
maintain all required records on forms prescribed by the Governing Board.
The Governing Board of the sponsor has retained and designated Volunteers Firemen's
Insurance Services, Inc. (VFIS) to assist in the administration of the Program. The
designated Program administrator's functions include providing basic annual
administration services as follows:
a) Providing participant enrollment forms;
b) Providing an annual reminder letter with a review list for the current anniversary
date;
c) Preparation of Explanation of Plan Benefits;
d) Calculation of Schedule of Benefits and costs annually;
e) Participants' benefit calculation at time of severance or retirement;
-36-
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
5. Length of Service Award Program (LOSAP) (continued):
Fiduciary investment and control (continued):
f) Auxiliary Fund valuation and suggested deposit;
g) Summary of required annual contribution;
L; h) Annual actuarial review and recommended benefit enhancements.
C,
Disbursements of Program assets for the payment of benefits or administrative expenses
must be approved. The following is an explanation of the process for approving
disbursements:
Payment of benefits:
1. Entitlement benefits - VFIS prepares and submits to the plan sponsor a
Verification of Benefits statement and an Annuity Enrollment form for
participants active at entitlement age and for vested participants upon termination
from the plan. Following review for accuracy, the plan sponsor signs and returns
the paperwork to VFIS authorizing VFIS to disburse entitlement benefits.
2. Death benefits - Upon notification from the plan sponsor of a participant's death,
VFIS prepares a Verification of Benefits statement and a Lump -Sum Death
Benefit form. Following review for accuracy, the plan sponsor signs and returns
the paperwork accompanied by a death certificate to VFIS authorizing VFIS to
disburse a death benefit.
3. Disability benefits - Upon notification from the plan sponsor of a participant's
total and permanent disability, VFIS prepares a Verification of Benefits statement,
a Physician Statement form and a Lump -Sum Disability Benefit form. Following
review for accuracy, the plan sponsor signs and returns the paperwork authorizing
VFIS to disburse a disability benefit.
Payment of administrative expenses:
1. Per the executed Service Fee Agreement, the plan sponsor agrees to payment as
contracted.
-37-
R mADAMV
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
5. Length of Service Award Program (LOSAP) (continued):
Payment of administrative expenses (continued):
Authority to invest Program assets is vested in Mass Mutual Financial Group. Subject to
restrictions in the Program document, Program assets are invested in accordance with a
statutory "prudent person" rule. The sponsor invested plan funds in a Group Annuity
Contract with guarantees of both principal and interest.
The sponsor is required to retain an actuary to determine the amount of sponsor's
contributions to the plan. The actuary retained by the sponsor for this purpose is
Glatfelter Specialty Benefits. Portions of the following information were derived from a
report prepared by the actuary dated April 28, 2014.
Program financial condition:
Assets and Liabilities
% of Total
Actuarial present value of accrued benefits at
February 28, 2014:
Vested
Non -vested
Less: Assets available for benefits:
Group Annuity Fixed Funds 100% $1,173,867*
Total net assets available for benefits
Total unfunded normal benefits
-3 8-
fflrnmpm
$2,294,431
26,923
2,321,354
1,173,867
1,147,487
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
5. Length of Service Award Program (LOSAP) (continued):
Program financial condition (continued):
Receipts and Disbursements
C Plan net assets, beginning of year
Changes during the year (increases/(decreases)):
Plan contributions
Fixed investment gain
Cash value surrender policies
Death claim
Plan benefit withdrawals
Administrative and other fees/charges
Life insurance premium
Plan net assets, end of year
$ 955,297
$288,898
41,330
8,491
1 0, 144
(110,296)
(3,790)
(16,307 218,470
1 173 767*
*The difference of $100 between the Group Annuity Fixed Funds available for benefits
and the Plan net assets, end of year, is due to a Monthly Entitlement Benefit due and
unpaid to a designated beneficiary.
Contributions
Amount of sponsor's contribution recommended by actuary 266 575
Amount of sponsor's actual contribution 288 898
Contributions paid in excess of recommended amount are for administration fees and
other adjustments.
Administration Fees
Fees paid to designated program administrator
-39-
ff?rnnfiPAXTV
3 790
5.
6.
Cutchogue Fire District
NOTES TO ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
Length of Service Award Program (LOSAP) (continued):
Funding methodology and actuarial assumptions:
Normal costs: The actuarial valuation methodology used by the actuary to determine the
sponsor's contribution is Entry Age Normal Frozen Initial Liability. The assumptions
used by the actuary to determine the sponsor's contribution and the actuarial present value
of benefits are:
Assumed rate of return on investment 4.75%
Mortality tables used for:
Pre -retirement
Male
Female
Post-retirement
Male
Female
Commitments and contingencies:
1984 Unisex Pensioners -1
1984 Unisex Pensioners -1
1984 Unisex Pensioners -1
1984 Unisex Pensioners -1
Encumbrances: In the current year, the District has reported, as assigned un-
appropriated fund balance, $44,631 for encumbrances. This amount represents open
purchase orders the District had at year end for equipment and capital outlay.
Legal: The District is exposed to various risks of loss related to torts, theft of, damage to
and destruction of assets, injuries to employees, errors and omissions, natural disasters,
etc. These risks are covered by commercial insurance purchased from independent third -
parties. Settled claims from these risks have not exceeded commercial insurance
coverage.
.N
Sheehan
437 Madison Avenue, 29th Floor
New York, NY 10022 • 212.962.4470
165 Orinoco Drive, Brightwaters, NY 11718
631.665.7040 • Fax: 631.665.7014
15 South Bayles Avenue, Port Washington, NY 11050
516.883.5510 • Fax: 516.767.7438
A PROFESSIONAL CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS www.sheehanepa.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF ANNUAL FINANCIAL REPORT UPDATE DOCUMENT
PERFORMED IN ACCORDANCE WITH GOVERIVMENTAUDITING STANDARDS
To the Board of Fire Commissioners
Cutchogue, New York
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the Annual Financial Report
Update Document of Cutchogue Fire District, as of and for the year ended December 31, 2014
and the related notes to the Annual Financial Report Update Document (Financial Section) and
have issued our report thereon dated February 27, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the Annual Financial Report Update Document, we
considered the Cutchogue Fire District's internal control over financial reporting (internal
control) to determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the Annual Financial Report Update Document but not for
the purpose of expressing an opinion on the effectiveness of Cutchogue Fire District's internal
control. Accordingly, we do not express an opinion on the effectiveness of Cutchogue Fire
District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the District's Annual Financial Report Update
Document will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with
governance.
-41-
An Independent Member of the BDn Alliance TTSA
To the Board of Fire Commissioners
Cutchogue, New York
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's Annual Financial Report
Update Document is free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of Annual Financial Report
Update Document amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instance of noncompliance or other matters that are required to
be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of
the District's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Brightwaters, New York
February 27, 2015
CA/4 �cr
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ff COMPANY