HomeMy WebLinkAbout2016 MATTITUCK FIRE DISTRICT
AUDITED FINANCIAL STATEMENTS
Year Ended December 31, 2016
TABLE OF CONTENTS
Page No.
INDEPENDENT AUDITORS' REPORT.................................................................................................... 1-2
FINANCIAL STATEMENTS
Balance Sheet—Governmental Fund........................................................................................................ 3
Statement of Revenues, Expenditures and Changes in
Fund Balance—Governmental Fund.................................................................................................... 4
Statement of Fiduciary Assets and Liabilities—Fiduciary Fund............................................................... 5
Notes to Financial Statements................................................................................................................... 6-23
REQUIRED SUPPLEMENTARY INFORMATION
General Fund—Schedule of Revenues, Expenditures and
Changes in Fund Balance- Budget and Actual.................................................................................... 24
General Fund—Schedule of Detailed Expenditures and
Appropriations........................................................................................................................................ 25-26
OTHER REPORT
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards.......................... 27-28
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CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
I To the Board of Fire Commissioners
Mattituck Fire District
Mattituck, New York
Report on the Financial Statements
l We have audited the accompanying financial statements of the Mattituck Fire District, New York which comprise
the Balance Sheet–Governmental Fund, Statement of Revenues, Expenditures and Changes in Fund Balance–
Governmental Fund, the Statement of Fiduciary Assets and Liabilities – Fiduciary Fund and the related notes to
the financial statements as of and for the year ended December 31,2016.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting practices prescribed or permitted by the Office of the New York State Comptroller's, Uniform
System of Accounts for Fire Districts. Management is also responsible for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement,whether due to error or fraud.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements 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
I' about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors'judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Mattituck Fire District, New York's preparation
and fair presentation of the financial statements 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 Mattituck Fire District,
New York'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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
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ALBRECHT,VIGGIANO,ZURECK&COMPANY, P.C.
245 PARK AVENUE,39TH FLOOR 25 SUFFOLK COURT
NEW YORK, NY 10167 HAUPPAUGE, NY 11788-3715
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Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1C, these financial statements are prepared on the accounting practices prescribed or
permitted by the Office of the New York State Comptroller's, Uniform System of Accounts for Fire Districts which is
a basis of accounting other than accounting principles generally accepted in the United States of America. The
effects on the financial statements of the variances between the regulatory basis of accounting described in Note
1C and accounting principles generally accepted in the United States of America, although not reasonably
determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on U.S.
Generally Accepted Accounting Principles" paragraph, the financial statements referred to above do not present
fairly, in accordance with accounting principles generally accepted in the United States of America, the financial
position of the Mattituck Fire District, New York as of December 31, 2016, or changes in financial position for the
year then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the
assets, liabilities and fund balance of the Mattituck Fire District, New York as of December 31, 2016, and the
change in fund balance for the year then ended, in accordance with accounting practices prescribed or permitted
by the Office of the New York State Comptroller's, Uniform System of Accounts for Fire Districts as described in
Note 1C.
Other Matters
Required Supplementary Information
The accounting practices prescribed or permitted by the Office of the New York State Comptroller's, Uniform
System of Accounts for Fire Districts which is a basis of accounting other than accounting principles generally
accepted in the United States of America requires that the accompanying financial information listed as required
supplementary information in the table of contents be presented to supplement the financial statements. Such
information, although not a part of the financial statements, is required by the accounting practices prescribed or
permitted by the Office of the New York State Comptroller's, Uniform System of Accounts for Fire Districts which
is a basis of accounting other than accounting principles generally accepted in the United States of America,
which consider it to be an essential part of financial reporting for placing the financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the financial
statements, and other knowledge we obtained during our audit of the financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 27, 2017 on our
consideration of the Mattituck Fire District, New York's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to 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 the Mattituck Fire District, New York's internal control over financial reporting and
compliance. p
Hauppauge, New York
April 27,2017
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MATTITUCK FIRE DISTRICT
GOVERNMENTAL FUND
GENERALFUND
BALANCE SHEET
December 31, 2016
ASSETS
Cash $ 907,719
Cash in special reserves 979,719
Other receivables 4,102
Prepaid items 3,110
Total Assets $ 1,894,650
LIABILITIES
Accounts payable $ 45,297
Accrued expenses 4,530
Total Liabilities 49,827
FUND BALANCE
Nonspendable 3,110
Restricted 979,091
Assigned 140,286
Unassigned 722,336
Total Fund Balance 1,844,823
Total Liabilities and Fund Balance $ 1,894,650
See notes to financial statements.
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MATTITUCK FIRE DISTRICT
GOVERNMENTAL FUND
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2016
REVENUES
Real property taxes $ 1,911,231
Use of money and property 18,350
Miscellaneous income 10
Total Revenues 1,929,591
EXPENDITURES
Personal services 188,957
Equipment and capital outlay 1,238,048
Fire protection 525,680
Employee benefits 402,292
Debt service 213,670
Total Expenditures 2,568,647
Net Change in Fund Balance (639,056)
Fund Balance at Beginning of Year 2,483,879
Fund Balance at End of Year $ 1,844,823
See notes to financial statements.
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MATTITUCK FIRE DISTRICT
FIDUCIARY FUND
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
December 31, 2016
ASSETS
Service award program assets $ 3,836,734
Total Assets $ 3,836,734
LIABILITIES
Service awards $ 3,836,734
Total Liabilities $ 3,836,734
See notes to financial statements.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mattituck Fire District (the "District"), which was established in 1905, is governed by Town Law and other
general laws of the State of New York. The governing body of the District is the Board of Fire Commissioners
which consists of five commissioners all of whom are elected to five year terms. The primary function of the
District is to provide fire protection services to the community. Services such as firefighting,fire prevention, and
public education support the primary function.
The more significant of the District's accounting policies are described below.
A. REPORTING ENTITY
The financial reporting entity includes all functions and activities over which the elected officials exercise
responsibility. No other governmental organizations have been included or excluded from the reporting
entity.
B. FUND FINANCIAL STATEMENTS
The financial statements of the District have not been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to governmental units. The District
prepares these financial statements on a prescribed basis of accounting that demonstrates compliance
with the regulatory basis of accounting and budget laws of the State of New York, which is a
comprehensive basis of accounting other than accounting principles generally accepted in the United
States of America.
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 accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund balances, revenues, and expenditures, 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 presented by type in the fund
financial statements.Accordingly,the District maintains the following fund types:
Governmental Funds-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
upon determination of financial position and changes in financial position.
The District reports the following governmental fund:
General Fund — the principal operating fund of the District which includes all receipts and
disbursements not required to be included in other funds.
Fiduciary Fund — the Fiduciary,Fund is used to account for assets held by the District in a trustee
capacity or as an agent for individuals, private organizations, and other governments.
The District reports the following fiduciary fund:
Agency Fund — used to account for money (and/or property) received and held in a custodial
capacity of trustee, custodian, or agent.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting
relates to the timing of the measurement made, regardless of the measurement focus applied.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
(continued)
The District follows the Uniform System of Accounts as described in the Fire District Accounting and
Reporting Manual issued by the Office of the New York State Comptroller. Under this system the District's
governmental activities use a current financial resources measurement focus and are accounted for using
the modified accrual basis of accounting. Under this basis of accounting, revenues are recognized in the
accounting period in which they are available and measurable, and expenditures will generally be
recognized in the accounting period in which the liability is actually incurred. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. This
basis of accounting differs from accounting principles generally accepted in the United States of America
for governments as promulgated by the Government Accounting Standards Board(GASB).
D. ASSETS, LIABILITIES AND FUND EQUITY
1. CASH IN SPECIAL RESERVES
Cash balances of the Capital Reserve for Building and Grounds and the Capital Reserve for Apparatus
are classified as cash in special reserves because the use of these funds is restricted by New York
State General Municipal Law.
2. RECEIVABLES
Receivables are recorded and revenues recognized as earned or as specific program expenditures are
incurred.
3. PREPAID ITEMS
Prepaid items represent insurance benefits that will benefit a future period.
4. CAPITAL ASSETS
All capital assets with an original cost of $1,000 or more are valued at historical cost or estimated
historical costs if actual is unavailable, except for donated capital assets which are recorded at their
estimated fair value at the date of donation. Depreciation is provided over the assets' estimated useful
lives using the straight-line method of depreciation.The range of estimated useful lives by type of asset
is as follows:
Buildings 20-50 years
Infrastructure 40 years
Vehicles and related equipment 5-20 years
Equipment 5-20 years
In accordance with the Accounting and Reporting Manual for Fire Districts, issued by the Office of the
New York State Comptroller, depreciation expense is not recorded in the District's governmental funds
and instead it is disclosed in the notes to the financial statements along with the District's changes in
capital assets. Additional information related to capital assets is disclosed in Note 3B to the financial
statements.
5. PROPERTY TAXES
Property taxes are collected by the Town of Southold on behalf of the District. Payments from the Town
of Southold are normally received at various intervals during the year.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. ASSETS, LIABILITIES AND FUND EQUITY(continued)
6. FUND EQUITY
In the fund financial statements, governmental funds report aggregate amounts for five classifications
of fund balances based on the constraints imposed on the use of these resources; they are 1)
nonspendable,2) restricted 3)committed,4)assigned, or 5) unassigned.
1) Nonspendable fund balance includes amounts that cannot be spent because they are either(a)
not in spendable form (i.e. prepaid items or inventories), or(b)will not convert to cash within the
current period (i.e. long term receivables and financial assets held for resale), or (c) legally or
contractually required to be maintained intact(i.e.the principal of a permanent fund).
The spendable portion of the fund balance comprises the remaining four classifications: restricted,
committed, assigned,and unassigned.
2) Restricted fund balance reflects the constraints imposed on resources either (a) externally by
creditors, grantors, contributors, or laws or regulations of other governments; or(b) imposed by
law through constitutional provisions or enabling legislation.
The District has established the following restricted funds balances:
Capital Reserve for Buildings and Grounds (GML 46-g) —The reserve is established by a
resolution of the Board of Fire Commissioners and may not take effect until approved by a
vote of the qualified electors of the District (i.e., mandatory referendum). The reserve
established for the construction and repair of District buildings and grounds is funded by
budgetary appropriations and revenues not required by law to be paid into any other fund or
account.The reserve is accounted for in the General Fund.
Capital Reserve for Apparatus (GML 66-g)—The reserve is established by a resolution of the
Board of Fire Commissioners and may not take effect until approved by a vote of the
qualified electors of the District(i.e., mandatory referendum).The reserve established for the
purchase and repair of District equipment and apparatus is funded by budgetary
appropriations and revenues not required by law to be paid into any other fund or account.
The reserve is accounted for in the General Fund.
3) Committed fund balance reflects amounts that can only be used for specific purposes by a
government using its highest and most binding level of decision making authority. The Board of
Fire Commissioners is not empowered to establish local law; accordingly, the District will not
have committed fund balance.
4) Assigned fund balance reflects the amounts constrained by the District's "intent" to be used for
specific purposes, but are neither restricted nor committed. The Board of Fire Commissioners
has the authority to assign amounts to be used for specific purposes.
5) Unassigned fund balance includes all other General Fund amounts that do not meet the
definition of the above four classifications and are deemed to be available for general use by the
District.
When both restricted and unrestricted resources are available for use, the District uses restricted
resources first, and then unrestricted resources—assigned and unassigned-in order as needed.
i
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
a 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
E. ENCUMBRANCES
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded for budgetary control purpose, is employed in the governmental funds.
Encumbrances are reported as restrictions, commitments, or assignments 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.
F. USE OF ESTIMATES
The preparation of financial statements in conformity with a prescribed basis of accounting that
demonstrates compliance with the regulatory basis of accounting and budget laws of the State of New
York,which is a comprehensive basis of accounting other than accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts and disclosures. Actual results could differ from those estimates.
G. SUBSEQUENT EVENTS
Management has evaluated subsequent events for disclosure and/or recognition in the financial
statements through the date of the financial statements.
2. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
The District prepares an annual budget for the General Fund which is approved by the Board of Fire
Commissioners. The budget is then submitted to the Town of Southold for inclusion in the Town Budget
and a public hearing is held thereon.The budget is not subject to referendum. Any revisions to the annual
budget are adopted by resolution of the Board of Fire Commissioners.
The budget is adopted annually on a prescribed basis of accounting that demonstrates compliance with
the regulatory basis of accounting and budget laws of the State of New York, which is a comprehensive
basis of accounting other than accounting principles generally accepted in the United States of America.
Appropriations authorized for the current year are increased by the amount of encumbrances, if any,
carried forward from the prior year.
B. REAL PROPERTY TAX LEVY CAP
New York State has enacted Chapter 97, Laws of 2011 Real Property Tax Levy Cap and Mandate Relief
Provisions, which includes a property tax cap for fire districts. For fiscal years, beginning in 2012 and
lasting through at least June 15, 2020, annually, fire districts cannot increase their property tax levy by
more than 2.00%or the rate of inflation (whichever is less) plus additional adjustments unless a resolution
approved by a vote of 60% of the total voting power of the Board of Fire Commissioners is obtained to
override the property tax levy limit for the coming fiscal year. The District has complied with this law in
adopting its 2016 budget.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
2. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY(continued)
C. FUND BALANCE
The following table provides the detail regarding fund balance categories and classifications for the
General Fund nonspendable, restricted and assigned fund balance. The unassigned fund balance is also
shown.
Fund Balances:
Nonspendable:
Prepaid items $ 3,110
Restricted for: \
Capital Reserve for Buildings and Grounds 439,119
Capital Reserve for Apparatus 539,972
Total Restricted 979,091
Assigned to:
Buildings and Grounds 50,000
Apparatus 55,000
Length of Service Award Program Contribution 5,000
Purchases on order 30,286
Total Assigned 140,286
Unassigned 722,336
Total Fund Balance $ 1,844,823
D. CAPITAL RESERVES
The District has established a Capital Reserve for Buildings and Grounds and a Capital Reserve for
Apparatus.A summary of activity in each of the District's Capital Reserve Funds is as follows:
Capital Reserve for Building and Grounds
The Board of Fire Commissioners established a capital reserve for construction and repairs to
building and grounds. A summary of activity in the Building and Grounds Capital Reserve Fund for
the year ended December 31,2016 is as follows:
Fund Balance at beginning of year $ 657,005
Transfer from General Fund appropriations 190,000
Interest earned on reserve cash 353
Expenditures (408,239)
Fund balance at end of year 439,119
Amount due to General Fund for reimbursement of costs 199
Cash balance at end of year $ 439.318
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
2. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY(continued)
D. CAPITAL RESERVES(continued)
Capital Reserve for Apparatus
The Board of Fire Commissioners established a capital reserve for purchases and repairs
associated with apparatus and equipment. A summary of activity in the Apparatus Reserve Fund for
the year ended December 31,2016 is as follows:
Fund Balance at beginning of year $ 1,107,446
Transfer from General Fund appropriations 195,000
Rental income 16,800
Interest earned on reserve cash 470
Expenditures (779,744)
Fund Balance at end of year 539,972
Amount due to General Fund for reimbursement of costs 429
Cash balance at end of year $ 540,401
3. DETAILED NOTES
A. CASH AND CASH IN SPECIAL RESERVES
The District's investment policies are governed by State statutes. In addition, the District has its own
investment policy. District monies must be deposited in FDIC-insured commercial banks or trust
companies located within the State.
Collateral is required for demand and time deposits at 105%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 or its municipalities.
Custodial Credit Risk- Deposits - Custodial credit risk for deposits exists when, in the event of the failure
of a depository financial institution, a government may be unable to recover deposits, or recover collateral
securities that are in possession of an outside agency. Deposits are required to be disclosed as exposed
to custodial credit risk if they are not covered by depository insurance, and the deposits are either:
• Uncollateralized;
• Collateralized with securities held by the pledging financial institution in the District's name;or
• Collateralized with securities held by the pledging financial institution's trust department or agent,
but not in the District's name.
At December 31, 2016, the District's bank balances were $2,048,069. Of the District's bank balances,
$417,264 was covered by federal deposit insurance and$1,630,805 was secured by collateral held by the
District's agent, a third party financial institution, in the District's name.
The District does not typically purchase investments for long enough duration to cause it to believe that it
is exposed to any material interest rate risk.
The District does not typically purchase investments dominated in a foreign currency, and is not exposed
to foreign currency risk.
The District does not have any investments subject to credit risk or concentration of risk.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
B. CAPITAL ASSETS
Capital assets consist of the following at December 31,2016:
Balance Balance
1/1/16 Additions Deletions 12/31/16
Capital assets, not being depreciated:
Land $ 386,000 $ 386,000
Total capital assets,not being depreciated 386,000 $ -0- $ -0- 386,000
Capital assets,being depreciated:
Buildings 2,632,088 226,287 51,200 2,807,175
Infrastructure 437,750 437,750
Vehicles and related equipment 4,238,536 776,459 5,014,995
Equipment 918,806 235,303 64,475 1,089,634
Total capital assets,being depreciated 8,227,180 1,238,049 115,675 9,349,554
Less accumulated depreciation for:
Buildings 1,078,469 68,113 27,450 1,119,132
Infrastructure 318,928 8,249 327,177
Vehicles and related equipment 2,757,860 205,769 2,963,629
Equipment 669,340 55,520 64,475 660,385
Total accumulated depreciation $ 4,824,597 $ 337,651 $ 91,925 5,070,323
Total capital assets,being depreciated, net 4,279,231
Total capital assets, net $ 4,665,231
Total depreciation expense $ 337,651
The District evaluates prominent events or changes in circumstances affecting capital assets to determine
whether impairment of a capital asset has occurred.The District's policy is to record an impairment loss in
the period when the District determines that the carrying amount of the asset will not be recoverable.At
December 31, 2016,the District has not recorded any such impairment losses.
C. INDEBTEDNESS
LONG TERM DEBT
The following is a summary of changes in long-term debt transactions for the year ended December 31,
2016:
*(Restated)
Balance Balance
1/1/16 Increases Reductions 12/31/16
General obligation serial bonds $ 411,000 $ 100,000 $ 311,000
Capital lease obligations 94,645 94,645 -0-
$ 505,645 $ -0- $ 194,645 $ 311,000
*The beginning balance of the capital lease obligation has been increased by $5,566 to reflect
reallocations of principal and interest by the bank over the term of the lease.
4
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
C. INDEBTEDNESS(continued)
LONG TERM DEBT (continued)
General Obligation Serial Bonds - The District borrows money in order to acquire land, equipment,
construct buildings or make 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 are
full faith and credit debt of the District. 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. General obligation serial bonds of the District will be repaid
from tax revenues. General obligation serial bonds bear interest at 3.70% and 4.20% and have final
maturity dates through 2019.
The following is a summary of maturity of general obligation serial bonds:
Final Interest Outstanding
Issue Date Maturity Rate 12/31/16
2004 2019 3.70% $ 245,000
2005 2019 4.20% 66,000
$ 311,000
Future principal and interest payments to maturity are as follows:
Year Principal Interest Total
2017 $ 101,000 $ 10,357 $ 111,357
2018 102,000 6,515 108,515
2019 108,000 2,539 110,539
$ 311,000 $ 19,411 $ 330,411
CAPITAL LEASE OBLIGATIONS
The District entered into a contract to acquire a 95 Foot Aerial Platform fire truck under a capital lease
agreement. The liability for this obligation was payable annually and matured in May 2016. The interest
' rate is 5.15%.The cost for the underlying equipment was$764,478.
D. RETIREMENT SYSTEM
Plan Description
The District participates in the New York State and Local Employees' Retirement System (the "System").
This is a cost-sharing multiple-employer retirement system.The System provides retirement benefits as well
as death and disability benefits. The net position of the System is held in the New York State Common
Retirement Fund (the"Fund"),which was established to hold all net assets and record changes in plan net
position allocated to the System. The Comptroller of the State of New York serves as the trustee of the
Fund and is the administrative head of the System. The Comptroller is an elected official determined in a
direct System benefits are established under the provisions of the New York State Retirement and Social
Security Law ("RSSL"). Once a public employer elects to participate in the System, the election is
irrevocable.
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MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES(continued)
D. RETIREMENT SYSTEM (continued)
The New York State Constitution provides that pension membership is a contractual relationship and plan
benefits cannot be diminished or impaired. Benefits can be changed for future members only by
enactment of a State statute. The District also participates in the Public Employees' Group Life Insurance
Plan (CLIP), which provides death benefits in the form of life insurance. The System is included in the
State's financial report as a pension trust fund. That report, including information with regard to benefits
provided, may be found at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the
New York State and Local Retirement System, 110 State Street,Albany, NY 12244.
Benefits Provided
The System provides retirement benefits as well as death and disability benefits.
Tiers 1 and 2
Eligibility: Tier 1 members, with the exception of those retiring under special retirement plans, must be at
least age 55 to be eligible to collect a retirement benefit, there is no minimum service requirement. Tier 2
members, with the exception of those retiring under special retirement plans, must have five years of
service and be at least age 55 to be eligible to collect a retirement benefit. The age at which full benefits
may be collected for Tier 1 and Tier 2, is 55 and 62 respectively.
Benefit calculation: Generally, the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If the member retires with 20 or more years of service,the benefit is
2% of final average salary for each year of service. Tier 2 members with five or more years of service can
retire as early as age 55 with reduced benefits. Tier 2 members age 55 or older with 30 or more years of
service can retire with no reduction in benefits. As a result of Article 19 of the RSSL,Tier 1 and 2 members
who worked continuously from April 1, 1999 through October 1, 2000 received an additional month of
service credit for each year of credited service they have at retirement, up to a maximum of 24 additional
months.
Final average salary is the average of the wages earned in the three highest consecutive years. For Tier 1
members who joined on or after June 17, 1971, each year of final average salary is limited to no more than
20% of the previous year. For Tier 2 members, each year of final average salary is limited to no more than
20%of the average of the previous two years.
Tiers 3, 4, and 5
Eligibility: Tier 3 and 4 members, with the exception of those retiring under special retirement plans, must
have five years of service and be at least age 55 to be eligible to collect a retirement benefit. Tier 5
members,with the exception of those retiring under special retirement plans, must have ten years of service
and be at least 55 to be eligible to collect a retirement benefit.The full benefit age for Tiers 3, 4 and 5 is 62.
Benefit calculation: Generally the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If a member retires with between 20 and 30 years of service, the
benefit is 2%of final average salary for each year of service. If a member retires with more than 30 years of
service, an additional benefit of 1.5% of final average salary is applied for each year of service over 30
years.Tier 3 and 4 members with five or more years of service and Tier 5 members with ten or more years
of service can retire as early as age 55 with reduced benefits.Tier 3 and 4 members age 55 or older with 30
or more years of service can retire with no reduction in benefits.
Final average salary is the average of the wages earned in the three highest consecutive years. For Tier 3,
4, and 5 members, each year of final average salary is limited to no more than 10% of the average of the
previous two years.
- 15-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
D. RETIREMENT SYSTEM (continued)
Tier 6
Eligibility:Tier 6 members,with the exception of those retiring under special retirement plans, must have ten
years of service and be at least age 55 to be eligible to collect a retirement benefit. The full benefit age for
Tier 6 members is age 63 for ERS members.
Benefit calculation: Generally, the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If a member retires with 20 years of service,the benefit is 1.75%of
final average salary for each year of service. If a member retires with more than 20 years of service, an
additional benefit of 2 % of final average salary is applied for each year of service over 20 years. Tier 6
members with ten or more years of service can retire as early as age 55 with reduced benefits.
Final average salary is the average of the wages earned in the five highest consecutive years. For Tier 6
members, each year of final average salary is limited to no more than 10% of the average of the previous
four years.
Ordinary Disability Benefits
Generally, ordinary disability benefits, usually one-third of salary, are provided to eligible members after ten
years of service; in some cases,they are provided after five years of service.
Accidental Disability Benefits
For all eligible Tier 1 and Tier 2 members, the accidental disability benefit is a pension of 75% of final
average salary, with an offset for any workers' compensation benefits received. The benefit for eligible Tier
3, 4 and 5 members is the ordinary disability benefit with the years-of-service eligibility requirement
dropped.
Ordinary Death Benefits
Death benefits are payable upon the death, before retirement, of a member who meets eligibility
requirements as set forth by law. The first$50,000 of an ordinary death benefit is paid in the form of group
life term life insurance.The benefit is generally three times the member's annual salary. For most members,
there is also a reduced post-retirement ordinary death benefit available.
Post-Retirement Benefit Increases
A cost-of-living adjustment is provided annually to: 1) all pensioners who have attained age 62 and have
been retired for five years; 2) all pensioners who have attained age 55 and have been retired for ten years;
3) all disability pensioners, regardless of age, who have been retired for five years; 4) recipients of an
accidental death benefit, regardless of age, who have been receiving such benefit for five years; and 5)the
spouse of a deceased retiree receiving a lifetime benefit under an option elected by the retiree at
retirement. An eligible spouse is entitled to one-half the cost-of-living adjustment amount that would have
been paid to the retiree when the retiree would have met the eligibility criteria.This cost-of-living adjustment
is a percentage of the annual retirement benefit of the eligible member as computed on a base benefit
amount not to exceed $18,000 of the annual retirement benefit.The cost-of-living percentage shall be 50%
of the annual consumer price index as published by the U.S. Bureau of Labor, but cannot be less than 1%
or exceed 3%.
Contributions
Plan members who joined the system before July 27, 1976 are not required to make contributions.
Those joining after July 27, 1976 and before January 1, 2010 with less than ten years of membership
are required to contribute 3%of their annual salary.
- 16-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
D. RETIREMENT SYSTEM (continued)
Those joining on or after January 1, 2010 and before April 1, 2012 are required to contribute 3% of their
salary for NYSERS members throughout active membership. Those joining on or after April 1, 2012 are
required to contribute between 3% and 6%, depending upon their salary, throughout active membership.
Under the authority of the NYSRSSL, the Comptroller shall certify annually the actuarially determined
rates expressly used in computing the employers' contributions based on salaries paid during the
System's year ended March 31.
Contributions for the current year and two preceding years were equal to 100% of the contributions
required, and were as follows:
Year ERS
2016 $ 28,663
2015 37,652
2014 37,205
Pension Assets, Liabilities, Pension Expense, and Deferred Outflows and Inflows of Resources Related to
Pensions
At December 31, 2016, the District reported a liability of $70,242 for its proportionate share of the net
pension liability for the System. The net pension liability was measured as of March 31, 2016 for ERS and
the total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of April 1, 2015. The District's proportion of the net pension liability was based on a projection of the
District's projected contributions of all participating members, actuarially determined. Below is the
proportionate share of the net pension liability of the System and the related employer allocation
percentage as of March 31, 2016 (measurement date).
ERS
Net pension liability $ 70,242
District's portion of the Plan's total
net pension liability 0.0004376%
Change in allocation of the System's
total Net Pension Liability since the
prior measurement date -0.0000007%
There was no significant change to the District's proportion from March 31, 2015 to March 31, 2016.
At December 31, 2016, the District had deferred outflows of resources related to pension from the
following sources:
Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 355 $ 8,326
Changes of assumptions 18,731
Net difference between projected and actual earnings
on pension plan investments 41,671
Changes in proportion and differences between the
District's contributions and proportionate
share of contributions 19,342 14
District's contribution subsequent to the measurement date 28,663
Total $ 108,762 $ 8,340
- 17-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
D. RETIREMENT SYSTEM (continued)
The District's contribution subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows of
resources related to pensions will be recognized as follows:
` ERS
Years Ending December 31, 2017 $ 18,739
2018 18,739
2019 18,739
2020 15,543
Actuarial Assumptions
The total pension liability as of the measurement date of March 31, 2016 was determined by using an
actuarial valuation as of April 1, 2015 with update procedures used to roll forward the total pension liability
to the measurement date.
Significant actuarial assumptions used in the valuations were as follows:
ERS
Measurement date March 31, 2016
Actuarial valuation date April 1, 2015
Interest rate 7,0%
Salary scale 3,8%
Decrement tables April 1, 2010- March 31, 2015
System's Experience
Inflation rate 2,5%0
Annuitant mortality rates are based on April 1, 2010 — March 31, 2015 System's experience with
adjustments for mortality improvements based on the Society of Actuaries'Scale MP-2014.
The actuarial assumptions used in the April 1, 2015 valuation are based on the results of an actuarial
experience study for the period April 1, 2010—March 31,2015.
The long term rate of return on pension plan investments was determined using a building block method in
which best estimate ranges of expected future real rates of return (expected returns net of investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long term expected rate of return by weighting the expected future real rates of return by each of the
target asset allocation percentages and by adding expected inflation. Best estimates of the arithmetic real
rates of return for each major asset class included in the target asset allocation are summarized below:
ERS
Long-term
Target Expected Rate
Allocation of Return
Asset type
Domestic equity 38.0% 7.30%
International equity 13.0% 8.55%
Private equity 10.0% 11.00%
Real estate 8.0% 8.25%
Absolute return strategies 3.0% 6.75%
Oportunistic portfolio 3.0% 8.60%
Real assets 3.0% 8.65%
Bonds and mortgages 18.0% 4.00%
Cash 2.0% 2.25%
Inflation indexed bonds 2.0% 4.00%
100.0%
- 18-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
3. DETAILED NOTES (continued)
D. RETIREMENT SYSTEM (continued)
Discount Rate
The discount rate used to calculate the total pension liability was 7.0%. The projection of cash flows used
to determine the discount rate assumes that contributions from plan members will be made at the current
contribution rates and that contributions from employers will be made at statutorily required rates,
actuarially. Based upon the assumptions,the System's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore,the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Asset/ (Liability) to the Discount Rate
Assumption
The following presents the District's proportionate share of the net pension liability calculated using the
discount rate of 7.0%, as well as what the District's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1% point lower(6.0%) or 1% point higher(8.0%) than
the current rate:
1% Current 1%
Decrease Assumption Increase
(6.0%) (7.0%) (8.0%)
Employer's proportionate share
of the net pension asset/(liability) $ (158,390) $ (70,242) $ 4,240
Pension Plan Fiduciary Net Position
The components of the current-year net pension liability of the employers participating in the system as of
March 31,2016,were as follows:
(Dollars in Thousands)
Valuation date April 1, 2015
Employers'total pension liability $ 172,303,544
Plan Fiduciary Net Position (156,253,265)
Employers' net pension asset/(liability) $ 16,050,279
Ratio of plan fiduciary net position to the
Employers'total pension liability 90.70%
Detailed information about the pension plan's fiduciary net position is available in the System's separately
issued financial statements.
4. COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
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 for the past two years. Management believes that all claims
currently pending are either adequately covered by insurance or will not materially affect the financial
position or results of operations of the District.
-19-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
4. COMMITMENTS AND CONTINGENCIES (continued)
B. LENGTH OF SERVICE AWARD PROGRAM(LOSAP)
The District's financial statements are for the year ended December 31, 2016. The information contained
in this note is based on information for the District's Length of Service Award Program (the "Plan") as of
January 1, 2017 for the Plan year ended December 31, 2016, which is the most recent Plan year for which
complete information is available. Actuarial values are calculated as of January 1, 2017 based upon
information and service accruals earned through December 31,2016 under the Plan.
The District established a defined benefit Plan (referred to as "LOSAP" — Length of Service Award
Program — under Section 457(e)(11) of the Internal Revenue Code) for active volunteer firefighters of the
Mattituck Fire Department. The program took effect on January 1, 1992. The Plan was established
pursuant,to Article 11-A of New York State General Municipal Law. The Plan provides municipally-funded
pension-like benefits to facilitate the recruitment and retention of active volunteer firefighters.The District is
the sponsor of the Plan and the Plan administrator(administration assistance provided by Penflex, Inc.).
Plan Description:
Participation. Vesting and Service Credit
Active volunteer firefighters who have reached the age of 18 and who have completed one year of
firefighting service are eligible to participate in the Plan. Participants acquire a nonforfeitable right to a
service award after being credited with five years of firefighting service or upon attaining the Plan's
entitlement age. The Plan's entitlement age is age 62. In general, an active volunteer firefighter is credited
with a year of firefighting service for each calendar year after the establishment of the Plan in which they
accumulate fifty points. Points are granted for the performance of certain activities in accordance with a
system ("Point System") established by the District on the basis of a statutory list of activities and point
values. A Participant may also receive service credit for five years of active volunteer firefighting service
rendered prior to the establishment of the Plan.
Benefits
A Participant's benefit under the Plan is the actuarial equivalent of a monthly payment for life equal to$20
multiplied by the Participant's total number of years of firefighting service. The number of years of
firefighting service used to compute the benefit cannot exceed forty. Except in the case of Pre-Entitlement
Age death or total and permanent disablement, a Participant's benefit will not be paid until the Participant
reaches the Entitlement Age ("EA') of 62. A Participant's benefit is paid as a ten-year certain and
continuous monthly payment life annuity. Currently, there are no other forms of payment of a Participant's
earned Plan benefit.
The Plan provides statutorily mandated death and disability benefits. The Plan also provides optional line
of duty disability benefits. Should a volunteer firefighter of the District become totally and temporarily
disabled, or partially and permanently disabled, as certified by the Workers' Compensation Board or other
competent authority approved by the Board of Fire Commissioners, and the disability occurs during the
course of service as a volunteer, while actively engaged in providing line of duty services, as defined in
subdivision one of section five of the Volunteer Firefighters' Benefit Law, the firefighter shall receive five
points for each complete calendar month of such disability under the Point System up to the earlier of the
date such volunteer'is no longer totally and temporarily or partially and permanently disabled or attains the
EA. However, if such disability becomes a permanent and total disability and a Mattituck Fire District
Service Award Program Total and Permanent Disability is awarded on account of such disablement, then
no future points shall be credited under this special line of duty disability benefit provision after the date of
the awarding of such Total and Permanent Disability by the Board of Fire Commissioners.
-20-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
4. COMMITMENTS AND CONTINGENCIES (continued)
B. LENGTH OF SERVICE AWARD PROGRAM(LOSAP)(continued)
Plan Description: (continued)
Benefits (continued)
If a Participant is awarded a Total and Permanent Service Award Program Disability by the Board of Fire
Commissioners before attaining the EA for a disability commencing after December 31, 1991, the
Participant is entitled to receive an amount equal to the Participant's Accrued Service Award earned as of
the date such disability payment is awarded by the Board of Fire Commissioners and payable on the first
day of every month for the lifetime of the Participant or for ten years, whichever is greater. Once a
Participant is awarded a Total and Permanent Service Award Program Disability under the Plan
provisions,such Participant shall no longer be eligible to participate in the District's Plan.
If a Participant dies before attaining the EA, a lump-sum shall be paid to the Participant's designated
beneficiary equal to the discounted actuarial present value of the Participant's Accrued Service Award
earned as of the date of death. If the Participant was an active volunteer firefighter of the District as of the
date of death, the minimum death benefit payable to the Participant's designated beneficiary shall be
$20,000.
Participants who are active after attaining the EA and who have commenced receiving their Plan benefit
have the opportunity to earn Plan credit and to thereby increase their Plan payments. In addition,
Participants who are active at the time of reaching EA receive an additional death benefit of$20,000.
Fiduciary Investment and Control
Service credit is determined based on information certified to the Board of Fire Commissioners by the `
Chief of each fire company having members who participate in the Plan. Each fire company must maintain
all required records on forms prescribed by the Board of Fire Commissioners.
The Board of Fire Commissioners of the District has retained and designated Penflex, Inc. to assist in the
administration of the Plan. The designated Plan administrator's functions include calculating the amount to
be contributed at the end of each year based upon the criteria set forth in the Plan Document.
Disbursements of Plan assets for the payment of benefits or administrative expenses must be approved
by the Board of Fire Commissioners and delivered to the Custodian through a Payment Schedule. The
Board of Fire Commissioners of the District has retained and designated Nationwide Life Insurance as the
Custodian of the Plan's assets. Nationwide Life Insurance shall make payments to Plan Participants and
their beneficiaries in accordance with the Payment Schedule.
Plan assets are required to be held in trust by Length of Service Award Program legislation, for the
exclusive purpose of providing benefits to Participants and their beneficiaries or for the purpose of
defraying the reasonable expenses of the operation and administration of the Plan.The trust agreement is
_ dated January 1, 1992 as amended, and the trustees are the Board of Fire Commissioners of the District.
Authority to invest Plan assets is vested in the Board of Fire Commissioners of the District. Subject to
restrictions in the Plan document, Plan assets are invested in accordance with a statutory"prudent person"
rule. The Plan document restricts the Trustee from investing in securities or obligations issued by the
Mattituck Fire District, other than a de minimis amount held in common investment vehicles in which the
Trustee invests. The District is required to retain an actuary to determine the amount of the District's
contributions to the plan. The actuary retained by the District for this purpose is Craig Relyea, ASA of
Penflex, Inc. Portions of the following information are derived from a report prepared by the actuary dated
February 15,2017.
-21 -
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
L 4. COMMITMENTS AND CONTINGENCIES(continued)
B. LENGTH OF SERVICE AWARD PROGRAM(LOSAP) (continued)
Plan Financial Condition
Assets and Liabilities:
r
Actuarial present value of benefits at December 31, 2016 $ 4,813,413
Less: assets available for benefits
Cash (Other) $ 385,187
Specialty 194,384
Internationals stocks 268,428
Mid-cap stocks 300,345
Large-cap stocks 959,456
Balanced 1,728,934
Benefits payable (43,327)
r
Total net assets available for benefits 3,793,407
Total unfunded benefits $ 1,020,006
Prior Service Costs
There are no prior service costs associated with the Plan.
Separately Amortized Costs
The unfunded liability for additional benefits earned after attainment of the EA is being amortized over
three years at 5.50%.
+- The unfunded liability for the other unfunded accrued liability is being amortized over fifteen years at
5.50%.
Receipts and Disbursements
Plan net assets, January 1, 2016 $ 3,641,966
Changes during the year:
Plan contributions $ 250,000
Changes in fair market value of investments 136,169
Plan benefit withdrawals (234,728)
Plan net assets, December 31, 2016 $ 3,793,407
Contributions
Amount of District's contribution recommended by actuary: $ 208,559
Amount of District's actual contribution: $ 250,000
Administration Fees
Fees paid to designated Plan administrator/actuary: $ 4,259
-22-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
4. COMMITMENTS AND CONTINGENCIES(continued)
B. 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 District's contribution is the
"Attained Age Normal Cost Method". Under this cost method,there are two components to the annual cost
each year. The first component, the "normal cost", is equal to the level annual payment required to fund
the current Participant's projected benefits based on their service credit earned after the effective date of
the Plan and before the EA. The second component,the annual amortization cost, equals the level annual
payments required to fund over the amortization period(s), the Participant's benefits, if any based on (1)
service credit earned before the effective date of the Plan, (2) service credit earned after the attainment of
the EA, and(3) other unfunded accrued liability.
Amortization period for liability for service after EA—3 years
Amortization period for re-established unfunded liability—15 years
Under the Attained Age Normal Cost Method, the unfunded accrued liability is calculated using the Unit
Credit Cost Method. Actuarial gains and losses are amortized over the future years of firefighting service
before the EA for the group of firefighters participating in the Plan on the valuation date. Higher than
expected investment income, for example, in any one particular year will reduce the normal cost in that
year and in each of the future years based upon the ages of the current firefighters participating in the
+ program on the valuation date. Likewise, losses to the Plan's Trust Fund will result in an increase in the
future annual normal cost.
The assumptions used by the actuary to determine the District's contribution and the actuarial present
value of benefits are:
Assumed rate of return on investment 5.50%
Mortality Tables used for:
Withdrawal: None
Disability: None
t Retirement: 100%at Entitlement Age
Death (Active): RP-2014 Mortality Table without projection for calculation of Pre-EA self-insured
death benefit only
Death (Inactive): RP-2014 Male Mortality Table without projection
C. LEASE AGREEMENTS
The District leases training space in Mattituck, New York under an operating lease agreement which
commenced June 1, 2005 and was amended on September 27, 2006. The amended lease agreement
expires May 31, 2031.The District has the option to renew this lease for one (1)additional twenty-five (25)
year period. The lease payments are $200 per month payable annually on the anniversary date of the
initial lease term and increases to $800 per month on the renewal date. Expenditures under this operating
lease for the year ended December 31,2016 were$2,400.
-23-
MATTITUCK FIRE DISTRICT
NOTES TO FINANCIAL STATEMENTS
4. COMMITMENTS AND CONTINGENCIES (continued)
C. LEASE AGREEMENTS(continued)
The District leases communication tower space in Sag Harbor, New York for a radio signal repeater under
an operating lease agreement which commenced May 27, 2009. The term of the lease agreement is for a
five (5) year period with 4 automatic renewal terms for an additional five(5) year period. The lease expires
May 31, 2033. The lease payments are $500 per month increased on the anniversary of the
commencement date by an annual escalator of three (3) percent. In addition, there is an annual site
inspection fee of$500 increased on the anniversary of the commencement date by the three (3) percent
annual escalator. Expenditures under this operating lease for the year ended December 31, 2016 were
approximately$7,300. ,
Minimum annual commitments under the operating leases described above are as follows:
Year ended December 31, 2017 9,894
2018 10,117
2019 10,352
2020 10,592
2021 10,839
2022-2026 58,139
2027-2031 64,108
2032 -2033 16,617
$ 190,658
REQUIRED SUPPLEMENTARY INFORMATION
-24-
MATTITUCK FIRE DISTRICT
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 2016
Variance
Original Final Positive
REVENUES Budget Budget Actual Encumbrances (Negative)
Real property taxes $ 1,911,189 $ 1,911,189 $ 1,911,231 $ 42
Use of money and property 18,350 1'8,350
Miscellaneous income 10 10
Total Revenues 1,911,189 1,911,189 1,929,591 18,402
EXPENDITURES
Personal services 211,804 211,804 188,957 $ 12,500 10,347
Equipment and capital outlay 112,500 1,300,483 1,238,048 2,786 59,649
Fire protection 633,190 644,370 525,680 15,000 103,690
Employee benefits 420,026 420,026 402,292 17,734
Debt service 213,669 218,669 213,670 4,999
Total Expenditures 1,591,189 2,795,352 2,568,647 30,286 196,419
Net Change in Fund Balance* $ 320,000 $ (884,163) (639,056) _L_L30,2861 $ 214,821
Fund Balance at Beginning of Year 2,483,879
Fund Balance at End of Year $ 1,844,823
*The difference in the net change in fund balance for the original budget and the final budget is due to budget amendments for$16,180 related
to the carryforward of prior year encumbrances and$1,187,983 in unbudgeted capital reserve expenditures incurred during the year that were
approved via permissive referendums.
-25-
MATTITUCK FIRE DISTRICT
GENERALFUND
SCHEDULE OF DETAILED EXPENDITURES AND APPROPRIATIONS
Year Ended December 31, 2016
Variance
Original Final Positive
Budget Budget Actual Encumbrances (Negative)
Personal Services $ 211,804 $ 211,804 $ 188,957 $ 12,500 $ 10,347
Equipment and Capital Outlay 112,500 1,300,483 1,238,048 2,786 59,649
Fire Protection Services
Administrative Expenses
Office supplies 17,000 20,700 20,321 379
Association dues 1,250 1,260 1,259 1
Legal and audit fees 74,500 76,070 62,824 13,246
Publications 7,750 8,150 2,059 6,000 91
Election expense 1,000 1,000 443 557
Total Administrative Expenses 101,500 107,180 86,906 6,000 14,274
Utility and Water Expenses
Gas and electric 59,000 56,500 42,318 14,182
Telephone 14,500 14,500 14,206 294
Hydrant rental 28,000 30,500 30,419 81
Total Utility and Water Expenses 101,500 101,500 86,943 -0- 14,557
Firefighters Expense
Uniforms 10,000 10,700 9,026 1,674
Medical exams 34,000 34,000 33,929 71
Inspection dinner 20,000 19,300 17,998 1,302
Total Firefighters Expense 64,000 64,000 60,953 -0- 3,047
Travel and Convention Expenses 19,500 19,500 14,259 -0- 5,241
Building Costs
Building repairs 107,500 116,500 78,311 38,189
Total Building Costs 107,500 116,500 78,311 -0- 38,189
Fire Equipment and Alarm
Fire alarm service 2,500 2,500 2,500
Gas and diesel 20,000 19,000 11,160 7,840
Repairs and maintenance 124,704 127,204 118,027 9,000 177
Medical supplies 25,000 20,000 14,080 5,920
Total Fire Equipment and Alarm 172,204 168,704 143,267 9,000 16,437
Insurance Costs
Vehicle and property 66,986 66,986 55,041 11,945
Total Insurance Costs 66,986 66,986 55,041 -0- 11,945
Total Fire Protection Services 633,190 644,370 525,680 15,000 103,690
(continued)
-26-
MATTITUCK FIRE DISTRICT
GENERALFUND
SCHEDULE OF DETAILED EXPENDITURES AND APPROPRIATIONS
Year Ended December 31, 2016
Variance
Original Final Positive
Budget Budget Actual Encumbrances (Negative)
Employee Benefits
Social security 16,203 16,203 14,449 1,754
State retirement system 37,750 37,750 28,663 9,087
Service award program 250,000 255,000 254,259 741
Workers'compensation insurance 49,003 44,003 43,493 510
Unemployment insurance 1,050 1,050 779 271
Life insurance 13,000 13,800 13,712 88
Medical and accident insurance 53,020 52,220 46,937 5,283
Total Employee Benefits 420,026 420,026 402,292 -0- 17,734
Debt Service
Principal 189,309 194,709 194,645 64
Interest 24,360 23,960 19;025 4,935
Total Debt Service 213,669 218,669 213,670 -0- 4,999
Totals $ 1,591,189 $ 2,795,352 $ 2,568,647 $ 30,286 $ 196,419
OTHER REPORT
-27-
0 -
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
To Board of Fire Commissioners
Mattituck Fire District
Mattituck, New York
We have audited, in accordance with the 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 Balance Sheet — Governmental Fund, Statement of
Revenues, Expenditures and Changes in Fund Balance — Governmental Fund, the Statement of Fiduciary
Assets and Liabilities — Fiduciary Fund information and the related notes to the financial statements of the
Mattituck Fire District, New York, as of and for the year ended December 31, 2016, which collectively comprise
the Mattituck Fire District, New York's financial statements, and have issued our report thereon dated April 27,
2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Mattituck Fire District, New
York'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 opinion on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the Mattituck Fire District, New York's internal
control. Accordingly, we do not express an opinion on the effectiveness of the Mattituck Fire District, New
' York'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 Mattituck Fire
District's financial statements 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.
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. 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.
PERSONAL SERVICE.TRUSTED ADVICE.
ALBRECHT,VIGGIANO,ZURECK&COMPANY, P.C.
245 PARK AVENUE,39TH FLOOR 25 SUFFOLK COURT
NEW YORK, NY 10167 HAUPPAUGE, NY 11788-3715
T 212.792 4075 T 631 434 9500 F:631.434 9518
www avz.com
INDEPENDENT MEMBER OF BKR INTERNATIONAL
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether Mattituck Fire District, New York's financial
statements are 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 financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express such
an opinion.The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
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 results of that testing, and not to provide an opinion on the effectiveness of the Mattituck Fire 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 Mattituck Fire District's internal control and compliance.
Accordingly,this communication is not suitable for any other purpose.
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( Hauppauge, New York
April 27,2017