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HomeMy WebLinkAbout2001RECEIVED MAY 16 2002 Southold Town Clerk Southold Fire District General Purpose Financial Statements -ule port ,q - f�lU RECEIVED 11 Southold Town Clerk SOUTHOLD FIRE DISTRICT P.O. BOX 908. SOUTHOLD, N.Y. 11971 (631) 765-4305 FAX (631) 765-5076 May 14, 2002 Mrs. Elizabeth Neville Southold Town Clerk Southold Town Hall Main Road Southold, New York 11971 Gentlemen: I am enclosing the independent auditor's report for the year ended December 31, 2001 for the Southold Fire District. Thank you very much for your attention to the enclosed. Sincerely yours, / jren A. Helinski Certified Public Accountant District Treasurer KAH/bs Enc. 1 ten- 1 1 1 1 1 1 1 1 t' 1 1 1 1 1 1 1 1 1 SOUTHOLD FIRE DISTRICT GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULE WITH INDEPENDENT AUDITORS' REPORT December 31, 2001 TABLE OF CONTENTS December 31, 2001 1Page INDEPENDENT AUDITORS' REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet — All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Equity — All Governmental Fund Types 3 Statement of Revenues, Expenditures and Changes in Fund Equity — Budget and Actual — General Fund 4 Notes to General Purpose Financial Statements 5 SUPPLEMENTARY SCHEDULE Schedule of Fire Protection Expenditures — Budget and Actual — General Fund 13 1 i 1 1 1 r SOUTHOLD FIRE DISTRICT 11 r L Coughlin Foundotos Cullen & Danowski, LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Fire Commissioners Southold Fire District Southold, New York Vincent D. Cullen, CPA James E. Danowski, CPA Jill S. Fichter, CPA George T. Foundotos, CPA Peter F. Rodriguez, CPA We have audited the accompanying general purpose financial statements of the Southold Fire District as of December 31, 2001 and for the year then ended. These financial statements are the responsibility of the Fire District's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior -year summarized comparative information has been derived from the District's December 31, 2000 financial statements and, in our report dated February 4, 2001; we expressed an unqualified opinion on those financial statements, except for the effects on the general purpose financial statements of not valuing general fixed assets at historical cost. We conducted our audit in accordance with auditing standards generally accepted in the United -States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As explained in Note II, the general fixed assets are reported essentially at appraised replacement values, which ' is a departure from generally accepted accounting principles in the United States of America. The effect of that departure on the combined balance sheet is not reasonably determinable. In our opinion, except for the effects on the general purpose financial statements of not valuing general fixed ' assets at historical cost as explained in Note II, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Southold Fire District at December 31, 2001, and results of its operations and changes in fund equity for the year then ended, in conformity with generally ' accepted accounting principles in the United States of America and the requirements mandated by the State of New York in its Uniform System of Accounts for Fire Districts (State System). ' Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying supplementary schedule listed in the table of contents is presented for purposes of additional analysis, and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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. January 15, 2002 Ten Roosevelt Avenue • Port Jefferson Station, New York 11776-3337 0 Tel: (631) 473-3400 • Fax: (631) 473-4863 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 2001 Totals (Memorandum Only) 2001 2000 $ 105,192 $ 212,254 381,017 315,513 210 5,645 Fiduciary 137,000 1,834 1,953 1,213,448 1,068,130 7,385,544 Governmental Funds Fund Account Groups General Capital Capital Trust And General Long -Term General Projects Reserves Agency Fixed Assets Debt ASSETS Unrestricted cash $ 105,192 $ $ $ $ $ Restricted cash 381,017 Accounts receivable 210 Due from other funds 36,433 100,000 Prepaid expenditures 1,834 Service award program assets 1,213,448 Land, buildings and equipment 7,385,544 Amount to be provided for retirement of long-term debt 20,000 Total Assets $ 143,669 $ - $ 481,017 $ 1,213,448 $ 7,385,544 $ 20,000 LIABILITIES Accounts payable $ 7,107 $ $ $ $ $ Accrued liabilities 5,798 Due to other funds 100,000 36,433 Service awards 1,213,448 Bonds payable 20,000 Total Liabilities 112,905 36,433 1,213,448 - 20,000 FUND EQUITY Investment in general fixed assets 7,385,544 Fund balances: Reserved for capital projects 481,017 Unreserved - undesignated 30,764 (36,433) - Total Fund Equity 30,764 (36,433) 481,017 - 7,385,544 - Total Liabilities and Fund Equity $ 143,669 $ - $ 481,017 $ 1,213,448 $ 7,385,544 $ 20,000 Totals (Memorandum Only) 2001 2000 $ 105,192 $ 212,254 381,017 315,513 210 5,645 136,433 137,000 1,834 1,953 1,213,448 1,068,130 7,385,544 6,984,801 20,000 40,000 $ 9,243,678 $ 8,765,296 $ 7,107 $ 44,055 5,798 7,083 136,433 137,000 1,213,448 1,068,130 20,000 40,000 1,382,786 1,296,268 7,385,544 6,984,801 481,017 452,513 (5,669) 31,714 7,860,892 7,469,028 $ 9,243,678 $ 8,765,296 See Notes to General Purpose Financial Statements Page 2 SOUTHOLD FIRE DISTRICT ■■r m 4mm m m m a m im ;tet rpt M M MM MMM COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUITY- ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31, 2001 Governmental Funds Capital Capital Reserves General _ Project Building Equipment REVENUES Real property taxes $ 1,047,440 $ $ $ Interest and earnings 16,860 790 17,517 Sale of equipment 7,062 Insurance recoveries - Refund of prior year expenditures 17,631 Miscellaneous Total Revenues EXPENDITURES Personal services Equipment and capital outlay Fire protection State retirement system Service award program Social security Workers' compensation Medical and accident insurance Principal retirement Interest payment Total Expenditures Excess (Deficiency) of Revenues Over ExRenditures OTHER SOURCES AND USES Operating transfers in Operating transfers (out) Total Other Sources (Uses) Excess (Deficiencv) of Revenues and Other Sources Over Expenditures and Other Uses Fund Equity - Beginning of Year Fund Equity - End of Year 1,089,309 - 790 17,517 117,522 87,119 36,433 262,733 125 246,069 9,766 27,942 11,863 20,000 2,120 785,259 36,433 304,050 (36,433) 294,803 294,803 790 (277,286) 100,000 205,000 (305,000) (305,000) - 100,000 205,000 (950) (36,433) 100,790 (72,286) 31,714 20,885 431,628 $ 30,764 $ (36,433) $ 121,675 $ 359,342 Totals (Memorandum Only) 2001 2000 $ 1,047,440 $ 984,208 35,167 39,157 7,062 - - 9,801 17,631 1319 RAI; 1,107,616 1,0;33,t331 117,522 94,827 418,355 41,420 262,733 260,657 125 50 246,069 245,015 9,766 8,041 27,942 21,947 11,863 11,128 20,000 20,000 2,120 3,180 1,116,495 706,265 (8,879) 327,566 305,000 337,000 (305,000) 337,000 (8,879) 327,566 484,227 156,661 $ 475,348 $ 484,227 See Notes to General Purpose Financial Statements Page 3 SOUTHOLD FIRE DISTRICT M � M M M M M M M r M M M M M M M M STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2001 Variance Modified Favorable Budget Actual (Unfavorable) REVENUES Real property taxes Interest and earnings Sale of equipment Insurance recoveries Refund of prior year's expenditures Miscellaneous Total Revenues EXPENDITURES Personal services Equipment and capital outlay Fire protection State retirement system Service award program Social security Workers' compensation Medical and accident insurance Principal retirement Interest payment Total Expenditures Excess of Revenues Over Expenditures OTHER SOURCES AND USES Operating transfers in Operating transfers (out) Total Other Uses Excess (Deficiency) of Revenues Over Expenditures and Other Uses Fund Equity - Beginning of Year Fund Equity - End of Year $ 1,047,420 $ 1,047,440 $ 20 10,000 16,860 6,860 - 7,062 7,062 50 17,631 17,631 - 316 316 1,057,420 1,089,309 31,889 24,000 21,947 2,053 130,051 117,522 12,529 88,000 87,119 881 301,307 262,733 38,574 125 125 - 246,100 246,069 31 9,899 9,766 133 27,950 27,942 8 11,868 11,863 5 20,000 20,000 - 2,120 2,120 - 837,420 785,259 52,161 220,000 304,050 84,050 (220,000) (305,000) (85,000) (220,000) (305,000) (85,000) (950) (950) 31,714 31,714 $ $ 30,764 $ 30,764 (Memorandum Only) 2000 Variance Modified 2000 Favorable Budget Actual (Unfavorable) $ 984,180 $ 984,208 $ 28 8,000 30,888 22,888 9,801 9,801 665 665 992,180 1,025,562 33,382 121,909 94,827 27,082 46,000 41,420 4,580 311,872 260,657 51,215 50 50 - 246,000 245,015 985 8,041 8,041 - 24,000 21,947 2,053 11,128 11,128 - 20,000 20,000 - 3,180 3,180 - 792180 706,265 85,915 200,000 319,297 119,297 (200,000) (337,000) (137,000) (200,000) (3$7,000) (137,000) (17,703) (17,703) 49,417 49,417 $ - $ 31,714 $ 31,714 See Notes to General Purpose Financial Statements Page 4 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The general purpose financial statements of the Southold Fire District have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standards setting body for establishing governmental accounting and financial reporting principles. The more significant of the Fire Districts accounting policies are described below. A. Financial Reporting Entity The Fire District is governed by the Municipal Law and other laws of the State of New York. The scope of activities included within the accompanying financial statements are those transactions which comprise Fire District operations, and are governed by, or significantly influenced by, the Board of Fire Commissioners. The primary function of the Fire District is to provide fire protection to the community. Services such as fire fighting, fire prevention and public education support the primary function. The financial reporting entity includes all funds, account groups, functions and organizations over which the Fire District officials exercise oversight responsibility. Oversight responsibility is determined on the basis of financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. ' B. Basis of Presentation The accounts of the Fire District are organized on the basis of funds and account groups, each of which is considered to be a separate accounting entity. These funds and account groups are based upon the requirements of GAAP for local governmental units as prescribed by GASB as well as the Uniform System of Accounts for Fire Districts (the State System). The operations of each fund are accounted for within a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity for both the funds and account groups and the revenues and expenditures for the funds. Governmental resources are allocated to and accounted for in individual funds 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 grouped in the financial statements in the following fund types and accoi int groups: 1. Govemmental Fund Types Governmental funds are those through which most governmental functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The measurement focus of the governmental funds is based upon determination of financial position and changes in financial position. The following are the Fire Districts governmental fund 1 types: a) General Fund - the general fund is the principal operating fund of the Fire District. It is used to account for all financial resources except those required to be accounted for in another fund. b) Capdal Protects Fund the capital projects fund is used to account for the accumulation of financial resources and the disbursements for the acquisition, construction or renovation of major capital facilities, or equipment. Page 5 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS ■� (Continued) 2. Fiduciary Fund Types ' Fiduciary funds are used to account for assets held by the Fire District in a trustee or custodial capacity: Trust and Agency Fund - the trust and agency fund is used by the Fire District to account for and report assets ' held by the Fire District in a trustee capacity, or as custodian or agents for individuals, private organizations, other governments, and/or funds. These include expendable trusts, non -expendable trusts and agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 3. Account Groups Account groups are used to establish accounting control and accountability for the Fire Districts general fixed assets and general long-term obligations. The two account groups are not "funds". They are accounting entities, not fiscal entities, and are concerned only with the measurement of financial position, and not with the results of operations. a) General Fixed Assets Account Group - the general fixed assets account group is used to account for land, buildings, improvements and equipment owned by the Fire District. b) General Long -Terre Debt Account Group - the general long-term debt account group is used to account for all long-term debt and other obligations of the Fire District. Long-term indebtedness includes obligations ' such as bonds, bond anticipation notes and capital notes. Other obligations include unbilled retirement liabilities and vested or accumulated vacation and/or sick leave which will be funded in future budgets. C. Measurement Focus/Basis of Accounting rMeasurement focus is the determination of what is measured. Measurement focus is a concept that embraces the objective of financial accounting and reporting. The objective of financial accounting and reporting is to 1 measure the flow of resources through the Fire District. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are included in the fund types on the balance sheet. Operating statements of these fund types present increases (i.e. revenues and other sources) and decreases (i.e. expenditures and other uses) in fund equity. ' The basis of accounting determines when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The State System gives the Fire District the option to adopt either the modified accrual basis or cash basis of accounting for recording transactions in its governmental and agency fund types as applicable. The Fire District reports its financial activities on the modified accrual basis of accounting. Under the modified accrual 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. If expenditure is the primary factor for determining reimbursement under the terms of a grant, revenue is recognized when the expenditure is incurred. Expenditures are recorded when the liability is incurred except: 1. Expenditures for prepaid expenses are recognized at the time of the disbursements when the Fire District is liable for payments. 2. Expenditures for principal and interest on long-term debt are not recognized until due. 3. Expenditures for pension costs for which funding has not yet been provided are recognized in the year that they are billed by the State and/or insurance carrier. 4. Expenditures for compensated absences such as unused vacation and sick days for which funding has not yet been provided are recognized in the year that they are paid. These compensated absences are as follows: Page 6 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) i ' The Fire District may recognize a liability for vacation leave and other compensated absences with similar characteristics and additional salary -related payments as the benefits are earned by the employees, based on the rendering of past service and the probability that the employees will be compensated for the benefits through paid time off or some other means. This includes vacation leave and other compensated absences with similar characteristics that were earned but not used during the current or prior periods and for which employees can receive compensation in a future period. Amounts do not include leave expected to lapse and do include leave that employees will eventually qualify for. D. Property Taxes Real property taxes are levied annually by the Fire District no later than November 1st and become a lien on December 1 St. Real property taxes are payable without penalty and interest in two equal installments by January 1 Oth and May 31 st. The Fire District's tax levy is collected by the Town of Southold. Tax collections are remitted in full to the Fire District in accordance with the Suffolk County Tax Act. Suffolk County is responsible for all uncollected taxes. E. Budgetary Data ' 1. Budget Policies ' The Fire District administration prepares a proposed general fund budget for approval by the Board of Fire Commissioners in September of each year. Upon Board approval, the budget is effective for the next calendar year. 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 as a control in preventing overexpenditure of established appropriations. Open encumbrances are reported as reservations of fund balance since they do not constitute expenditures or liabilities and will be honored through budget appropriations in the subsequent year. 3. Budget Basis of Accounting Budgets are adopted annually by the Board of Fire Commissioners in accordance with State law. Appropriations authorized for the current year are increased by the amount of encumbrances carried forward from the prior year. F. General Fixed Assets The State System requires that general fixed assets be recorded at cost as expenditures in the respective funds at the time of purchase and accounted for in the General Fixed Assets Account Group. However, except for land, which is recorded at cost, the Fire District records these fixed asset values at appraised replacement values (see Note II). Donated amounts are valued at estimated fair market value when given. G. General Long -Term Debt ' General Obligation Debt Long-term debt used to finance various capital projects is accounted for in the General Long -Term Debt Account Group. No liability is recorded for interest payable to maturity. I Page 7 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) H. Interfund Transfers The operations of the Fire 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 or permissive referendum. I. Fund Equity Reserves and designations of fund equity are segregated for future or restricted use and are, therefore, not available for appropriation or expenditure. Designation of unreserved fund equity indicates the use of this resource in the ensuing year's budget or tentative plans for future use. J. Use of Estimates The preparation of general purpose financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. K. Total Columns on Combined Statements Total columns on the general purpose financial statements and the supplementary schedule are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. The data in these columns does not present financial position or results of operations in conformity with accounting principles generally accepted in the United States of America. Neither is the data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. L. Comparative Data Comparative total data for the prior year have been presented in selected sections of the accompanying general purpose financial statements in order to provide an understanding of the changes in the government's financial position and operations. Il. DEPARTURE FROM ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA Accounting principles generally accepted in the United States of America require that long-lived assets be capitalized in the General Fixed Assets Account Group and recorded at historical cost. Except for land which is recorded at cost the Fire District has recorded these assets at appraised replacement value based on an independent appraisal report, dated October 31, 1998, together with additions and disposals through December 31, 2001. The effect of not valuing these assets at historical cost on the general purpose financial statements as of December 31, 2001 has not been determined. 111. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets 1. Cash and Investments The Fire District's investment policies are governed by State statutes. The Fire Districts monies must be deposited in FDIC -insured commercial banks or trust companies located within the State. The treasurer is authorized to use time and demand accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and its subdivisions, repurchase agreements, and obligations of New York State and its subdivisions. Page 8 SOUTHOLD FIRE DISTRICT ' NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) ' Collateral is required for demand and time deposits as well as certificates of deposit not covered by Federal Deposit Insurance. Obligations that may be pledged as collateral include obligations of the United States and its agencies and obligations of the State and its municipalities. Deposits are valued at cost or cost plus interest and are categorized as either (1) insured, or collateralized with securities held by the Fire District or the Fire District's agent in the Fire District's name, (2) collateralized with securities held by the financial institution's trust department in the Fire District's name, (3) collateralized with securities that are held by the financial institution or its trust department but not in the Fire District's name, or uncollateralized. The Fire District's bank balances as of December 31, 2001 were fully collateralized under category (1). ' 2. Changes in Fixed Assets ' A summary of changes in general fixed assets per an independent appraisal report dated October 31, 1998, together with additions and disposals through December 31, 2001 is as follows: Balance Balance January 1, Net December 31, 2001 Change 2001 ' Land $ 206,892 $ $ 206,892 Buildings 3,044,188 4,450 3,048,638 Equipment 3,733,721 396,293 4,130,014 ' Total $ 61984,801 $ 400,743 $ 7,385,544 Land, purchased in previous years, is recorded at original cost. B. Liabilities and Fund Equity ' 1. New York State and Local Employees' Retirement System a) Plan Description Effective January 1, 1997, the Fire District participated in the New York State and Local Employees' Retirement System (ERS). This system is a cost-sharing, multiple -employer, defined benefit pension plan. The system offers retirement and disability benefits, annual cost of living increases, and death benefits to plan members and beneficiaries. The ERS is established pursuant to the New York State Retirement and Social Security Law to provide benefits for the state, local governments, and their employees. ERS plan benefits are guaranteed by the state constitution. The system issues publicly available financial reports that include financial statements and required supplementary information. These reports may be obtained by writing or calling the system at the following location: NYS and Local Retirement Systems, Governor Smith State Office Building, Albany, New York 12244, (518) 474-1101. i I Page 9 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) ' b) Funding Policy The System is noncontributory except for employees who joined the retirement system after July 27, 1976 with less than ten years of service, who contribute 3% of their salary. Regardless of start date, all members ' may elect to make member contributions. The Comptroller shall certify annually the expressed as proportions of the members' payroll, which shall be ' used in computing the contributions required to be made by employers to the pension accumulation fund. The Fire District is required to contribute on an annual basis. Contributions are generally made to the ERS on December 15, for the period April 1 to March 31 of the following year based on estimated eligible employees' salaries. Contributions are adjusted in the following year based on actual salaries. ' The following represents the Fire District's regular pension contribution to the system based on annual covered payroll: ' 2001 2000 1999 District Contributions Rate 0.0% 0.0% 0.0% District Contributions $ - $ - $ 2. Pension Plan - Service Award Program ' General Information The Fire District voters approved a Service Award Program effective January 1, 1993 which is an unqualified deferred compensation plan. Under the State enabling legislation, the Service Award Program was specifically excluded from the state's retirement system. a) Plan Description The Service Award Program has no minimum months of service requirement for participation in the plan. All members who are credited with sufficient "Service Award Points" are eligible. The minimum ' age of a participant is 18; completion of one year of participation in the plan is required to collect benefits. Participants are fully vested in the fifth year of the plan. Benefits begin on the anniversary date following attainment of age 65. The maximum number of past service years credit is five. b) Benefits The benefits provided to members of the program are established by the plan. The benefit at entitlement date is $20 per month multiplied by the total years of service. Total years of service can not exceed 38 years and service prior to January 1, 1990 is limited to 5 years. The maximum monthly benefit is $400. The normal form of the benefit is in monthly payments for life (with payments guaranteed for at least 10 years). The death benefit represents the present value of accrued benefits. The accrued benefit represents $20 per month multiplied by the total years of credited service as of the determination date, and is payable beginning at the entitlement date. The termination benefits are 0% vesting up to 4 years and 100% thereafter. I Page 10 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) c) District Information The following represents information relating to the Fire District's participation in the above pension plan as of December 31, 2000, as determined by the actuarial received May 2001. The calendar year 2001 information is not available yet. ' Present Value of Benefits $ 1,849,211 Less: Assets Available for Benefits 1,166,892 ' Total Unfunded Benefits 682,319 Less: Unfunded Liability for Prior Service 171,913 ' Present Value of Future Normal Cost $ 510,406 d) Contribution Requirements ' The Fire District contributes to the plan based on a group funding calculation. The assumptions for determining the contributions and present value of accrued benefits are as follows: ' Pre -retirement — interest rate: 7% of compounded annually Pre -retirement — annuity factor: 7% compounded annually ' 3. Indebtedness a) Long -Term Debt ' Serial Bonds The Fire District borrows money in order to acquire 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 Fire District, 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. Unissued Debt ' On June 12, 2001, the voters of the Fire District authorized the Fire District to make improvements to the existing firehouse at a maximum cost of $1,100,000. Funding for the project is to be provided by the issuance of serial bonds. At December 31, 2001, no bonds had been issued and $36,433 of architectural expenditures had been incurred. b) Changes in Indebtedness The changes in the Fire District's long-term indebtedness during the year ended December 31, 2001 are summarized as follows: ' Page 11 SOUTHOLD FIRE DISTRICT Balance Balance January 1, December 31, 2001 (Reductions) 2001 ' Serial Bonds $ 40,000 $ (20,000) $ 20,000 ' Page 11 SOUTHOLD FIRE DISTRICT NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) c) Maturity of Long Term Indebtedness Serial Bonds The following is a summary of maturity of bonded indebtedness: ' Page 12 SOUTHOLD FIRE DISTRICT Outstanding Final Interest December 31, Issue Date Maturity Rate 2001 1992 2002 5.30% $ 20,000 ' The following is a summary of maturing debt service requirements for the general obligation bonds: ' Year Principal Interest Total 2002 $ 20,000 $ 1,060 $ 21,060 IV. SPENDING LIMITATION ' The District did not exceed the statutory spending limitation imposed by State Law. ' Page 12 SOUTHOLD FIRE DISTRICT SUPPLEMENTARY SCHEDULE - SCHEDULE OF FIRE PROTECTION EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2001 ' (Memorandum Only) Variance Modified Favorable 2000 ' Budget Actual (Unfavorable) Actual Administrative Office Supplies & Computers $ 17,225 $ 4,842 $ 12,383 $ 2,839 Legal Fees & Expenses 10,200 10,200 9,850 Auditing & Accounting 6,350 6,350 _ 6,350 Miscellaneous 8,275 8,267 8 3,482 Total Administrative 42,050 29,659 12,391 -22,521 ' Utilities Utilities & Telephone 37,082 28,860 8,222 36,692 Hydrant Rental 37,875 34,864 3,011 34,932 ' Total Utilities 74,957 63,724 11,233 71,624 Travel, Conventions, Etc. 11,000 10,939 61 12,060 ' Insurance 33,400 33,377 23 30,987 Firefighters Expense Medical Exams 7,200 7,172 28 7,773 Fire Training Seminars 6,375 6,375 - 8,048 Dept. Dinners & Awards 7,525 7,505 20 7,480 Total Firefighters Expense 21,100 21,052 48 23,301.00 Building Building Maintenance 47,800 47,782 18 37,206 Building - Substation 18,000 17,954 46 17,911 Total Building 65,800 65,736 64 ' Fire Equipment & Alarm Apparatus Maintenance 35,000 24,334 10,666 26,665 Equipment Maintenance 18,000 13,912 4,088 18,383 ' Total Fire Equipment & Alarm Total Fire Protection Expenditures 53,000 38,246 14,754 45,048 $ 301,307 $ 262,733 $ 38,574 $ 205,541 See Paragraph on Supplementary Information Included in Independent Auditors' Report ' Page 13 SOUTHOLD FIRE DISTRICT WIN Southold Fire District • General Purpose Hnancial Statements • Supplementary Schedule • Independent Audit Report For the Year Ended December 31, 2001