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HomeMy WebLinkAbout1991 audit EVFCD Ij h , \ .I I U � r.+ � A A��,i kVJU���''vv�^w��76�pTQtr��i 1'V,r,dGYjw�C�'�r{�� VV iW�l�ur�^P:��1y l; i�� 17S ��7dlG6�`I'w(E np�1Pl '.0 ylv d{rl"/',{pl,�'r p \lV�1r H �"''Rr�4�11 nBii41°Id:i�9�t�i�+nf .��i 1 r , +hldri.^I IdtPt\aiNrdxyptd IF,.ti4rRa'apyh,l ;� fii« Tai r6y/+d,i IN4 y , V w.I tieYrvrvt�dl"Qa"i Snto,�i 4Yr a��{aR YA,I,« ' i' t VrdVv yaha�y� '.'a 'tim,g at I �" f„� f p1 9!4l lF4N F 4 y(/ jll 1 ' ENFIELD VOLUNTEER FIRE COMPANY, INC. DECWER 31 1991 Accountants' Review Report ................ -••.••••-•••.-••• .............. 1 ' I. .. .... .. 2 Balance Sheet ................... ................ -Statement of -Support, Revenues, Expenses and e" Changes in Fund Balance ...... .-..•........... ... .._•-_.- 4 Combined Statement of CashFlows .................................. Notes to Financial Statements ......_.............. ..- 1 1 ' Frederick I Ciaschi, CPA. John li_ Dietershagen, C.P.A. John E: Little, C.P.A. Jerry E. Mickelson, C.P.A. ' Thomas= K. Van Derzee, C.P.A. Debbie A_ Conley, C.PA. - Reginald E. Malley; CPA -- Boa rd .PA_Board of-Directors- Enfield f Directors Enfield Volunteer -F ' Enfield, New York We have reviewea -tine--accumpaiiyiiiy---------- Fire Company, Inc.,- as- of December 31, 1991, and the relatedstatementof ' support; revenues, expenses and changes in fund balance, and combined statement of ---cash flows for the yearthenended, in accordance with- standards established by the American"institute of Certified Public Accountants. All information included in these financial statements is the representation"of -the management " ' of the Enfield Volunteer Fire"Company, Inc. a A "review "consists principally of inquirieso f""Co Company personnel and - analytical procedures""applied to -financial data. it is substantially less in ' scope than an audit in accordance with generally accepted accounting principles, the objective ©f which is the expression of an opinion regarding the financial statementstakenas a whole:- Accordingly, we do not express such an opinion. Based on our review, with the exception of the matter described in the ' following paragraph, we are Inot aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformit with accepted accounting rinci les- Y- " generally Y- P g P P ' As -disclosed in Note "6 to "the financial statements -generally accepted accounting principles "require that the firemen's 2% discretionary- funds be included in -the reporting"entity of"the Enfield Volunteer Fire Company,- Inc. As we -were not engaged to review this"information, it has been excluded from"these - financial statements. The effects of excluding the 2% "funds have "not been determined. March 2"7, 1992 ' Ithaca, New York t CORTLAND ITHACA WATKINS GLEN 18 Tompkins Street Terrace Hill 221 N. FranklinStreet Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443_ ENFIELD VOLUNTEER FIRE COMPANY, INC. BALANCE SHEET DECEMBER 31, 1991 Land, Buiding, ASSETS Operating &Equipment Fund Fund Total e Current Assets _ " $ 958 $ 37,124 $ 38,082 Cash Total Current Assets= 958 37,124 38;082 Fixed Assets, Net of accumulated depreciation of $497,275 (Note 2) 588, 6 588,586 588 Total Assets $ 958 _ $ _ - _ _ 625,710 $ _ . 626,668 LIABILITIES AND FUND BALANCE" Current Liabilities $ 4,407 $ $ 4,407 Accounts Payable - -4) 2,516 2,516 ' Current -portion of mortgage (Note Current portion of- loan and note payable (Note 5) 22,820 22.820 Total Current Liabilities 4,407 25,336 29,743 Mortgage payable, -net of current portion (Note 4) _ 216,951 216,951 Loan and Hots payable, net of current portion (Note 5) 172,491 172,491 Total Liabilities. 4,407 414,778 419,185 Fund Balance" _ 37,124 37,124 ' Reserved (Note 3) (3,449) 173,808 170,359 Unreserved Total Fund Balance (Deficit) (3,449) 210,932 207,483 Total Liabilities and Fund Balance $ 958 $ 625,710 - $ 626.668 1 See Accountants' Review Report and Accompanying Notes —2 ENFIELD VOLUNTEER FIRE COMPANY, INC. STATEMENT OF SUPPORT, REVENUES, EXPENSES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 1991 Land, Building, Operating & Equipment Fund Fund Total Support and Revenues Towmcontract $ 155,040 $ $ 155,040 Interest income 1,346 1,520 2,866 Donation from Firemen's Account 4,404 4,404 Total Support and Revenues 160,790 1,520 162,310 Expenses Administrative 3,547 3,547 Building maintenance 4,512 4,512 Fire equipment maintenance 14,524 14,524 Truck maintenance 11,531 11,531 Insurance 24,829 24,829 Truck fuel 1,101 1,101 Rescue and training 8,098 8,098 Utilities 6,644 6,644 Depreciation 90,140 90,140 interest expense 37,749 37,749 To#a1=Expenses 74,786 127,889 202,675 Excess of Support and Revenues Over (Under) Expenses 86,004 (126,369) (40,365) Other Changes in Fund Balance Transfer to reserve (Note 3) (8,000) 8,000 0- -0- Capital acquisitions Cap (21,691) 21,691 -0- Transfer for debt payments (60,040) 60,040 -0- ' ENFIELD VOLUNTEER FIRE COMPANY, INC. COMBINED --STATEMENT OF CASH FLOWS FOR THE -YEAR ENDED DECEMBER 31, 1991 I ' Cash Flows from Operating Activities Excess of support and revenues (under) expenses $ (40,365) Adjustments to reconcile excess of support and revenyes (under) expenses to net cash provided ' by operating activities Depreciation 90;14Q (Decrease) in accounts payable (5,389) -Net Cash Provided by Operating Activities 44,386 Cash Flows from Investing Activities: - Capital acquisitions (21,691) Net Cash (Used) by Investing Activities (21,691) Cash Flows from Financing Activities: Payment on mortgage payable (2,064) 'Payment on loan and note payable {20,227} Net Cash (Used) by Financing -Activities (22,291) NET INCREASE IN CASH 404 Cash balance, January 1, 37,678 Cash balance, December -31 9 $ 38,082 Supplemental Disclosure: 1 Interest paid 37,749 Review Report Accompanying Notes See Accountants' and —4- ENFIELD VOLUNTEER FIRE COMPANY, INC. ' NOTES -TO FINANCIAL STATEMENTS DECEI�PER 31. 1991 ' Note 1 Symmary of"Sip-nificant Accounting Policies Activity- The Enfield Volunteer Fire Company, Inc. i an all volunteer fire 1 company which provides fire protection services to the Town of Enfield and surrounding areas. The Company is incorporated under the not-for- profit Corporation:Law: Accounting Method The accrual basis of accounting is utilized for financial reporting purposes. All revenues are recognized as earned. and expenses are reflected as incurred. Fund Accounting To ensure observance of limitations and restrictions placed on the use of resources, available to the Enfield Volunteer Fire Company, Inc., the accounts of the Company are maintained in accordance with the principles of fund accounting. This is the --procedure by which resources for various purposes are classified -.for accounting and reporting purposes -into funds established according to their nature and purposes. The assets, liabilities, and fund balances of the Enfield Volunteer Fire Company, Inc. are reported in two self -balancing funds as follows: ' • The Operating Fund. includes current resources available for. the support of operations-. • The Land, Building and Equipment Fund includes resources used for ' the acquisition of_ capital equipment. Land, Building and Equipment Capital assets are recorded in the Land, Building and Equipment Fund at cost, and depreciation expense is computed -by. the -straight-line method. over the estimated -useful lives of the assets, ranging from five to fifteen years. -(See Note 2) Donated Services No amounts have been reflected in the statements for donated -services inasmuch as no objective basis is available to measure the value of ' such services. Note 2 - Fixed Assets Fixed -assets are reflected at cost and consist of the following: Accumulated Net Book Asset -Cost Denreci"ation Value Land $ 15,000 $ -0- $ 15,000 Buildings 262,350 53,573 208,777 Vehicles 660,000 338,000 322,000 Equipment 148,511 105.702 42,809 ' Total $.:1,085,861 $ 497.275 $586 Depreciation expense for 1991 amounted to $90,140. - 5 ENFIELD VOLUNTEER FIRE COMPANY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 Note 3 - Reserved Fund Balance, The reserved fund balance represents amounts that -have been set aside for future replacement of capital assets. Each year an amount is budgeted -for transfer to the capital reserve fund. During 1991, the transfer amounted to."$8,000. At December _31,".1991, reserved funds amounts to $37,124. Note 4 - Mortpaae Pavable On December 31, 19871, the Enfield Volunteer Fire Company, Inc., entered into a mortgage: agreement with Citizens Savings Bank in the amount -of to finance the cost of building the Company's fire .$225,000 hall. Repayment on the" -mortgage began on April 11 1988 with a monthly payment of $1,745 at December 31, 1991. The term of the mortgage is 30 years and the interest rate is variable, currently 8.5%, but never to exceed 15.5$.. Future - -minimum payments are estimated as follows based upon an interest rate of 8$: PrinciQle Interest. Total 1992 $ 2,516 $ 17,742 $ 20,258 1993 2,775 17,256 20,031 1"994 3,006 17,025 20,031 1995 3,255 16,776 20,031 19-96 3,525 16,506 20,031 ' 3997 & Thereafter 204,390 221,273 425,663 Totals $219,467 $306578 $526,045 Note 5 - Loan and Note Pavable. The Enfield Volunteer -Fire Company, Inc. entered into a promissory note agreement on January 28, 1991 with Norstar Bank to help finance a fire truck purchase."- The total principle borrowed was $16,509".= The term of the note is -24 months with an interest_ rate of 8.25%. In addition", the Company_"entered_ into a loan agreement with FMC Corporation for the purchase of two fire trucks. The loan date "is June, 1990, and the term 10 years. The annual interest rate -is 9%, with payments commencing --on June 29, 1991. Future minimum payments on the above note, and -loan are as follows: Principle Interest- Total 199 2 22� 820 $ 17,186- $ 40,006 $ 1993 16,316 15,462 31,778 1994 16,975 14,055 31,030 ' 1995 18,502 120-528 31,030 1996 20,168 10,862 31,030 1997 & Thereafter 100,530 23,590" 124,-120 ' Totals $ 195„311 $ 93,683 $288,994 Note 6 - pepartmFe from GAAP," The -2% discretionary -funds received by the Enfield Volunteer Fire ' Company, -Inc., are required to be a part of the Company's reporting entity-. However, these funds were not included within the scope of the audit engagement. -" - 6 '-