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Home My WebLink About2006 Town AuditITOWN OF GROTON FINANCIAL STATEMENTS DECEMBER 31, 2006 RECEIVED -FILED OFFICE OF THE TOWN CLERK ' 101 CONGER BLVD., GROTON, NY DATE q�/��d -7 /qM'E /•' � � AM -6 w'�OWN CLERK TOWN OF GROTON Financial Statements December 31, 2006 TABLE OF CONTENTS Independent Auditors' Report..........................................................................................................1 Combined Balance Sheet - Regulatory Basis - All Fund Types and Account Groups............................................................................................2 Combined Statements of Operations and Changes in Fund Equity - Regulatory Basis - All Governmental Fund Types......................................................................................................3 Combined Statements of Operations and Changes in Fund Equity - Regulatory Basis - Budget and Actual - General and Special Revenue Funds............................................................4 Notes to the Financial Statements....................................................................................................5 Independent Auditors' Report on Additional Information.............................................................16 Combining Balance Sheet - Regulatory Basis - General Fund......................................................17 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - General Fund................................................................................................................................18 Combining Balance Sheets - Regulatory Basis - Special Revenue Funds.....................................19 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - Special Revenue Funds................................................................................................................20 MONDORF & FENWICK, PLLC CERTIFIED PUBLIC ACCOUNTANTS 523 COLUMBIA DRIVE JOHNSON -CITY, NEW YORK 13790 TELEPHONE (607) 797-4339 MEMBER AICPA AND NYSSCPA INDEPENDENT AUDITORS' REPORT Supervisor and Town Board Town of Groton Groton, New York FAX (607) 797-3894 We have audited the accompanying financial statements of the governmental activities, of the Town of Groton, New York, as of December 31, 2006, and for the year then ended, as listed in the table of contents. These financial statements are the responsibility of the Town of Groton's, New York management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the 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 described in Note I. the Town of Groton, New York, prepares its financial statements in conformity with the requirements of the Office of the State Comptroller of the State of New York as applied to governmental units, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The differences between the regulatory basis of accounting and accounting principles generally accepted in the United States of America are also described in Note 1. In our opinion, the financial statements referred to above present fairly, in all material respects, the Balance Sheets of the Town of Groton, New York, as of December 31, 20061, and the results of its operations for the year then ended, on the basis of accounting described in Note 1. This report is intended solely for the information and use of the Town Board and management of the Town of Groton and the Office of the State Comptroller of the State of New York and is not intended to be and should not be used by anyone other than these specified parties. Mondorf & Fenwick Certified Public Accountants, PLLC June 28, 2007 a 'TOWN OF GROTON Combined Balance All Fund Sheet - RegulaWry-Basis-n Types Account Groups December and 31, 20.06 Total Fiduciary Memorandum Governmental Fund Types Fund Type Account Groups Only Special Trust and Non-current Non-current December 31, General Revenue Agency Gov't Assets Gov't Liabilities Total 2005 Assets Unrestricted cash $ 878,048 $ 1,014,024 $ 1,892,072 $ 1,806,360 Restricted cash 10,574 10,574 16,718 Other receivables, net 87,064 87,064 87,064 Fixed assets $ 3,228,759 3,228,759 2,884,598 Provision to be made in future budgets $ 58,923 58,923 48,258 Total assets $ 888,622 $ 1,101,088 $ - $ 3,228,759 $ 58,923 $ 5,277,392 $ 4,842,998 Liabilities and Equity Liabilities Accounts payable $ 12,142 $ 125,010 $ 137,152 $ 22,529 Accrued liabilities 3,596 12,961 16,557 16,877 Statutory installment bond - Compensated absences $ 58,923 58,923 48,258 Agency liabilities Other liabilities 3,839 3,839 - Due to other governments 87,064 87,064 87,064 Deferred revenue - 36,403 Overpayment Total liabilities 19,577 225,035 - - 58,923 303,535 211,131 Equity Fund balances -reserved Encumbrances 15,000 146,464 161,464 l 34,958 Capital equipment 8,407 8,407 216,832 Unemployment insurance 10,574 10,574 1,250 Excess dog control revenues - 6 ,468 6 Total fund balances -reserved 25,574 154,871 - - - 180,445 3681508 Fund balances -unreserved Investment in general fixed assets $ 3,228,759 3,228,759 2,884,598 Appropriated for ensuing year's budget 105,000 60,000 1 70,492 Unappropriated 738,471 661,182 1,39999 ,653 653 1,308,269 Total fund balances -unreserved 843,471 721,182 - 3,228,759 - 4,793,412 4,263,359 Total fund balances 869,045 876,053 - 3,228,759 - 4,973,857 4,631,867 Total liabilities and fund balances $ 888,622 $ 1,101,088 $ - $ 3,228,759 $ 58,923 $ 5,277,392 $ 4,842,998 The accompanying notes are an integral part of these financial statements. -2- TOWN OF GROTON Combined Statements of Operations and Changes in Fund Equity - RQulatory Basis - All Governmental Fund Types For The Year Ended December 31. 2006 The accompanying notes are an integral part of these financial statements. -3- Total Memorandum Governmental Fund Types Only Special December 31, General Revenue Total 2005 Revenues and other sources Revenues Real property taxes $ 449,917 $ 890,328 $ 1,340,245 $ 11296,559 Real property tax items 8,148 83148 5,642 Non -property tax items 94,937 94,937 109,686 Departmental income 4,941 4,941 35938 Intergovernmental charges 2,750 21)750 1,620 Use of money and property 315724 190,704 222,428 194,774 Licenses and permits 23,022 23,022 23,136 Fines and forfeitures 24,509 24,509 28,522 Sale of property and compensation for loss 19 19 4,186 Miscellaneous local sources 504 504 655 State aid 79,850 421,948 501,798 166,326 720,321 1,5021,980 2,223,301 1,835,044 Expenditures General government support 297,530 297,530 287,075 Public safety 22,426 81,000 103,426 98,786 Public health 75,000 75.000 72,185 Transportation 56,633 110671130 15123,763 854,405 Economic assistance and opportunity 12,200 121200 10,670 Culture and recreation 42,593 42,593 38,702 Home and community services 36,002 314,634 350,636 44,095 Employee benefits 110,276 1101048 220,324 172,196 Debt service - 56,284 652,660 1,572,812 21225.472 1,634,398 Revenues and other sources over expenditures 67,661 (69,832) (2,171) 200,646 Fund balances, beginning of year 801,384 945,885 1,747,269 11546,623 Fund balances, end of year $ 869,045 $ 8761053 $ 1,745,098 $ 11747,269 The accompanying notes are an integral part of these financial statements. -3- TOWN OF GROTON Combined Statements of Operations and Chan eL' nd Equity _ Reaulatory Basis _ The accompanying notes are an integral part of these financial statements. -4- Budget and Actual - General and Special Revenue Funds For The Year End December 31. 2006 General Fund Special Revenue Variance Variance Modified favorable Modified favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Revenues and other sources Revenues Real property taxes $ 449,917 $ 449,917 $ 890,328 $ 890,328 Real property tax items 7,500 8.i48 $ 648 Non -property tax items 102,000 94,937 (7,063) Departmental income 3,290 4,941 1,651 Intergovernmental charges 2,750 2,750 Use of money and property 9,700 31,724 22,024 159,112 190,404 $ 31,292 Licenses and permits 17,650 23,022 5,372 Fines and forfeitures 21,000 24,509 3,509 Sale of property and compensation for loss 19 19 200 (200) Miscellaneous local sources 504 504 State aid 54,500 79,850 25,350 103,570 107,442 3,872 Total revenues 668,307 720,321 S 52,014 1,153,210 1,188,174 $ 34,964 Appropriated fund balance 67,067 411,570 $ 735,374 $ 1,564,780 Expenditures General government support $ 353,663 291,530 $ 56,133 Public safety 24,019 22,426 1,593 $ 81,000 81,000 Public health 75,200 75,000 200 Transportation 58,392 56,633 1,759 1,310,730 1,067,130 $ 243,600 Economic assistance and opportunity 14,200 12,200 2,000 Culture and recreation 49,797 42,593 7,204 Home and community services 47,938 36.002 11,936 Employee benefits 112,165 110,276 1,889 118,050 110,048 8,002 Debt service 735,374 652,660 82,714 1,509,780 1,258,178 251,602 Other uses Capital reserve 55,000 55,000 Total expenditures and other uses $ 735,374 652,660 $ 82,714 $ 1,564,780 1,258,178 $ 306,602 Revenues and other sources over expenditures 67,661 (70,004) Net change in unbudgeted special revenue funds 172 Fund balances, beginning of year 801,384 945,885 Fund balances, end of year $ 869,045 $ 876,053 The accompanying notes are an integral part of these financial statements. -4- TOWN OF GROTON Notes to the Financial Statements December 31 2006 1. Summary of siornificant accounting policies The financial statements of the Town of Groton (the Town) have been prepared in conformity with the requirements of the Office of Comptroller of the State of New York as applied to governmental units. That basis of accounting differs from generally accepted accounting principles primarily because the Town has not adopted the Governmental Accounting Standards Board (GASB) Statement 34, Basic Financial Statements — and Management's Discussion and Analysis - for State and Local Governments. The Governmental Accounting Standards Board is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The amount of this departure has not been determined. The Town's more significant accounting policies are described below. A. Reportinor entity The Town of Groton, which is located in the County of Tompkins in the State of New York, was established in 1817. The Town is governed by Town Law, general municipal laws of the State of New York and various local laws. The Town Board is the legislative body responsible for overall operations. The Town Supervisor serves as chief executive officer and chief fiscal officer. The following basic services are provided by the Town: fire protection, highways and streets maintenance, recreation, public improvements, planning and zoning, and general administration. All governmental activities and functions performed for the Town are its direct responsibility. No other governmental organizations have been included or excluded from the reporting entity. The financial reporting entity consists of (a) the primary government which is the Town (b) organizations for which the primary government is financially accountable, and (c) other organizations for v"Thich the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth in GASB Statement 14. The decision to include a potential component unit in the Town's reporting entity is based on several criteria set forth in GASB 14 including legal standing, fiscal dependence, and financial accountability. Based on the application of these criteria, no other organizations have been included or excluded from the reporting entity. -5- TOWN OF GROTON Notes to the Financial Statements December 31, 2006 1. Summary of significant accounting policies (continued) B. Fund accounting The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for within a separate set of self -balancing accounts that is comprised of its assets, liabilities, fund balance, 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 summarized by type in the financial statements. The following fund types and account groups are used: Governmental fund types Governmental funds are those through which most governmental functions of the Town 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 Town of Groton's governmental fund types: a. General fund The general fund is the principal operating fund and includes all operations not required to be recorded in other funds. The general fund, Part -town, is used to record transactions which are required to be a charge on the area of the town outside the Village of Groton. b. Special revenue funds These funds account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. The following Special Revenue Funds are utilized: - Highway Funds - (Town -wide and Part -town) established pursuant to Highway Law, Section 141, and used to account for revenues and expenditures for highway purposes. Highway Law, Section 277, requires that expenditures for repairs and improvements be financed by the area outside the village. Therefore, a town with a village must maintain two highway funds. - Special District Funds - (Lighting District and Fire Protection District) are used to record transactions for operations and maintenance for these activities. - Special Grant Fund - used to account for Community Development Block Grants. -6- TOwN OF GROTON Notes to the Financial Statements December 31, 2006 1. Summary of significant accounting policies (continued) Fiduciary fund type Fiduciary funds are used to account for assets held by the local government in a trustee or custodial capacity. Trust and agency funds These funds account for money and/or property received and held in the capacity of trustee, custodian or agent. These include agency funds. Account groups Account groups are used to establish accounting control and accountability for non- current governmental assets and non-current governmental liabilities. The two account groups are not "funds". They are concerned only with the measurement of financial position, and not results of operations. a. Non-current government assets group This grouping accounts for land, buildings, improvements other than buildings, and equipment utilized forgeneral government purposes. b. Non-current government liability group This grouping accounts for all non-current liabilities of the Town. C. Basis of accounting/measurement focus Basis of accounting refers to when revenues and expenditures/expenses and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus. Measurement focus is the determination of what should be measured, i.e. expenditures or expenses. Modified Accrual Basis - All Governmental Funds, Expendable Trust Funds, and Agency Funds are accounted for using the modified accrual basis of accounting. Under this basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. -7- TOWN OF GROTON Notes to the Financial Statements December 31.2006 1. Summary of significant accountini policies (continued) C. Basis of accounting/measurement focus (continued) Material revenues that are accrued include real property taxes, state and federal aid, sales taxes, and certain user charges. If expenditures are the prime factor for determining eligibility, revenues from federal and state grants are accrued when the expenditure is made. Expenditures are recorded when the fund liability is incurred except the following, which are recognized when paid: a. Expenditures for prepaid expenses and inventory items. b. Principal and interest on indebtedness. c. Compensated absences, such as vacation and sick leave which vest or accumulate. d. Pension costs. Account Groups - Non-current government assets are recorded at actual or estimated cost or, in the case of gifts or contributions, at the fair market value at the time received. No provision for depreciation is made. Non-current government liabilities are recorded at the par value of the principal amount. No liability is recorded for interest payable to maturity. D. Property taxes Real property taxes are levied annually by the Town of Groton no later than January 1, and become a lien on January 1. Taxes are collected during the period January 1 to May 31. The County of Tompkins subsequently enforces uncollected real property taxes. The County pays an amount representing uncollected real property taxes transmitted to the County for enforcement to the Town no later than May 31. TOWN OF GROTON Notes to the Financial Statements December 31. 2006 1. Summary of significant accountini policies (continued) E. Budgets and budgetary accountinv, Budget policies - The budget policies are as follows: a. No later than October 5, a tentative budget is submitted by the budget officer for the fiscal year commencing the following January 1. The tentative budget includes tD proposed expenditures and the proposed means of financing for all funds. b. After public hearings are conducted to obtain taxpayer comments, no later than November 20 the Town Board adopts the budget. c. The Town Board must approve all modifications of the budget. d. Appropriations lapse at year-end. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations, is employed in the Governmental Funds. Encumbrances are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Expenditures for such commitments are recorded in the period in which the liability is incurred. Budget basis of accounting Budgets are adopted annually on a basis consistent with requirements of the State of New York. Appropriations authorized for the current year are increased by the amount of encumbrances carried forward from the prior year. Budgetary controls for the special grant fund are established in accordance with the applicable grant agreement, which covers a period other than the Town's fiscal year. Consequently, the budgets for this fund have been excluded from the budget to actual comparison in the Combined Statement of Operations and Changes in Fund Equity — Regulatory Basis - Budget and Actual. The following schedule reconciles the difference between this statement and the combined Statement of Operations and Changes in Fund Equity — Regulatory Basis — All Government Fund Types. TOWN OF GROTON Notes to the Financial Statements December 31, 2006 1. Summary of significant accounting policies (continued) E. Budgets and budgetary accounting (continued) Total for funds included in budget comparison $ Funds not included in budget comparison Special grant Fund Balance Beginning of Year Revenues Fund Balance End Expenditures of Year 884,857 $ 11188,174 $ 1,258,178 $ 814,853 61,028 314,806 314,634 61,200 Total special revenue funds $ 945,885- $ 1,502,980 $ 1,572,812 $ 876,053 F. Non-current government assets - general Fixed assets purchased for general governmental purposes are recorded as expenditures in the governmental funds and are capitalized at cost in the Non-current Government Assets account group. Contributed fixed assets are recorded at fair market value at the date received. Fixed assets consisting of certain infrastructure type improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the Town of Groton. Therefore, the purposes of stewardship for capital expenditures can be satisfied without recording these assets. No depreciation has been provided on general fixed assets, nor has interest been capitalized on general fixed assets that are construction in progress. G. Vacation and sick leave and compensated absences Employees of the Town are granted vacation and sick leave in varying amounts. In the event of termination or upon retirement, an employee is not entitled to payment for accumulated vacation time. However, sick leave can be accrued up to 720 hours which is payable upon termination or retirement. WCC TOWNT OF GROTON Notes to the Financial Statements December 31, 2006 1. Summary of significant accounting policies (continued) G. Vacation and sick leave and compensated absences (continued) The value of unused employee sick leave at year-end has been recorded in Non-current Government Liability Account group. Payment of sick leave recorded in the Non-current Government Liability Account group is dependent upon many factors; therefore, timing of future payments is not readily determinable. However, management believes that sufficient resources will be made available for the payments of sick leave when such payment becomes due. Further, the Town recognizes a liability for vesting sick leave and other compensated absences with similar characteristics and additional salary-relatedpayments as employees earn benefits, to the extent it is probable that the Town will compensate the employees for the benefits through cash payments (which may be conditioned on the employees' termination or retirement), rather than being taken as absences due to illness or other contingencies. The liability for compensated absences is calculated at rates in effect as of the balance sheet date and is recorded in the governmental funds if funded from current financial resources, and the non-current government liability account group for amounts to be paid from future financial resources. 2. Cash and investments The Town's investment policies are governed by State of New York statutes. In addition, the Town has its own written investment policy. The Town of Groton's monies must be deposited in FDIC -insured commercial banks or trust companies located within the state. The Supervisor is authorized to use demand accounts and certificates of deposit for operating purposes. Permissible investments include obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations of New York State or its localities. Collateral is required for demand and time deposits and certificates of deposit not covered by Federal Deposit Insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the state and its municipalities and school districts. The written investment policy requires repurchase agreements to be purchased from banks located within the state. The underlying securities must be obligations of the Federal government. Underlying securities must have a market value of at least 105 percent of the cost of the repurchase agreement. q 11- TOWN OF GROTON Notes to the Financial Statements December 31, 2006 2. Cash and investments (continued) Deposits and investments at year-end were entirely collateralized by Federal Deposit Insurance or by collateral held by the Town's custodial bank in the Town's name. In the financial statements all deposits including certificates of deposit are carried at cost plus accrued interest. Total bank balances as of December 31, 2006 were $1,834,697, and included the following: Fund Bank Balance Coverage General $ 888,171 Insured, Collateralized Special Revenue $ 1,014,023 Insured, Collateralized Agency $ 3,947 Insured, Collateralized 3. Summary of changes in non-current Vovernment assets Balance Balance 12/31 /05 Additions Deletions 12/31 /06 Land $ 563,000 $ 563,000 Buildings 7_30 0 5 8 73 0,05 8 Machinery & Equipment 1,591,540 $ 349,068 $ (4,907) 1,9353701 $ 2,884,598 $ 349,068 $ (4,907) $ 3,?28,759 4. Other receivables Other receivables at December 31, 2006 consisted of the following, which are stated at net realizable value. Fund Description Amount Special Grant Rehabilitation loans $ 87,064 The balance of other receivables represents one loan receivable. The Town did not receive any loan payments during year-end 2006. In 2004 the Town Board authorized the Town Attorney to commence foreclosure proceedings. The Town is currently collecting on a judgment in the amount of $99,856.24, however, collectibility cannot be reasonably estimated. TOWNT OF GROTON Notes to the Financial Statements December 31, 2006 Emplovees' retirement Plan description The Town participates in the New York State and Local Employees' Retirement System (ERS). This is a cost sharing multiple public employer retirement system. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security —L --J (NYSRSSL). The State comptroller is sole trustee and administrative head of the System. The Comptroller shall adopt and may amend rules and regulations for the administration and transaction of the business of ERS and for the custody and control of their funds. ERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the New York State and Local Retirement Systems, Gov. Alfred E. Smith State Office Building, Albany, New York 12244. Fundini policy ERS is noncontributory except for employees who joined the New York State and Local Employees' Retirement System after July 27, 1976 who contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of payroll of members, which shall be used in computing the contributions required to be made by employers to the pension accumulation fund. The Town is required to contribute at an actuarial determined rate. The required contributions for the current year and two preceding years were: 2006 $ 5205 2005 $ 275949 2004 $ 33,180 The Town's contributions made to ERS were equal to 100 percent of the contributions required for each year. Since 1989, the System's billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts relating to the System's fiscal years ending March 3L 1988 and 1989 (which otherwise were to have been paid on June 30, 1989 and 1990. respectively) over a 17 -year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The Town elected to make the full payment on December 15, 1989. -13- TOWN OF GROTON Notes to the Financial Statements December 31, 2006 5. Employees' retirement (continued) Historical trend information showing the progress in accumulating sufficient assets to pay benefits when due is presented in the Annual Financial Report of ERS. Additional detailed information concerning ERS may also be found in the Report. 6. Other Post -employment Benefits The Town provides postretirement health care benefits to all employees who retire on or after attaining at least 20 years of full time service and who are enrolled in the plan at the time of retirement. Currently, there are two retirees who meet those eligibility requirements. The Town pays 25% of the total premium of the Town for medical insurance for retirees. If the retirees attain insurance through a plan not established by the Town, the Town will pay up to $110 to each retiree to apply toward the retirees' premium cost. These post -employment benefit expenses are recognized as the costs are incurred. During the fiscal year, expenses of $2,640 were recognized for post -employment health care. 7. Non-current Qovernment liabilities Compensated Absences - The Town has compensated absences outstanding as of December 31, 2006 in the amount of $58,923. Compensated absences represents the value of earned and unused portion of accumulated sick leave. Statutory Bonds — The Town issued a five year statutory installment bond in the amount of $1336, 194 on August 1, 2001 for partial financing of a 2001 model Caterpillar excavator. The bond was payable in annual installments of $27,23 8, with the first principal payment being made on August 1, 2002. Semi-annual interest payments were due each February and August, and were calculated on the principal balance at a rate of 4.3%. The First National Bank of Groton was the registered holder of the bond. Maturity date of the bond was August 1, 2006. The bond debt service requirements for 2005 and 2006 were as follows: Principal Interest 2005 $ 27,239 $ 2,343 2006 27,2319 15171 $ 54,478. $ 3,514 During the year -ending December 31, 2005, the Town paid the outstanding principal balance of $54,478. -14-. TOWN OF GROTON Notes to the Financial Statements December 31, 2006 8. Fund equity -reserves The following reserves existed at December 31, 2006 for the following purposes: Fund General — Town wide General — Town wide Highway — Town wide Highway — Town wide Purpose Unemployment reserve Encumbrances Encumbrances Capital equipment reserve -15- Amount 10,574 15,000 146,464 8,407 $ 180,445 MONDORF & FENVICK, PLLC CERTIFIED PUBLIC ACCOUNTANTS 523 COLUMBIA DRIATE JOHNSON CITY, NEVV YORK 13790 TELEPHONE (607) 797-4339 MEMBER AICPA AND NYSSCPA INDEPENDENT AUDITORS' REPORT ON ADDITIONAL INFORMATION Supervisor and Town Board Town of Groton Groton, New York FAX (607) 797-3894 Our report on our audit of the financial statements of the Town of Groton for 2006 appears on page 1. That audit was made for the purpose of forming an opinion on the financial statements taken as a whole. Additional information included on pages 17 through 20 in this report is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Mondorf & Fenwick Certified Public Accountants, PLLC June 28, 2007 -16- TOWN OF GROTON Combininc Balance Sheet - Regulatory Basis - General Fund December 31. 2006 Assets Unrestricted cash Restricted cash Total assets Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Other liabilities Due to other governments Total liabilities Fund balances -reserved Reserve for unemployment Reserve for encumbrances Total fund balances -reserved Fund balances -unreserved Appropriated for ensuing year's budget Unappropriated Total fund balances -unreserved Total fund balances Total liabilities and fund balances Town -Wide Part -Town Total $ 7795863 $ 985185 $ 878,048 10,574 10,574 790.437 $ 98,185 $ 8885622 $ 11,966 $ 176 S 12,142 3,187 409 313596 35839 39839 185992 585 19,577 10, M74 101574 15,000 159000 25,574 255574 85,000 205000 105,000 660,871 77,600 738,471 745,871 979600 843,471 7711445 979600 8695045 $ 790,437 $ 985185 $ 888,622 See independent auditors' report on additional information. -17- TOWN OF GROTON Combining Statements of Operations and Changes in Fund Eq}i�6, _ Re__ ilatory Basis - General Fund For The Year Ended December 31. 2006 See independent auditors' report on additional information. - 18 - Town -Wide Part -Town Total Modified Budget Actual Modified Budget Actual Modified Budget Actual Revenues and other sources Revenues Real property taxes $ 323,331 S 323,331 S 126,586 $ 126,586 $ 449,917 S 449,917 Real property tax items 7,500 8,148 7,500 8,148 Non -property tax items 100,000 92,514 2,000 2,423 102,000 94,937 Departmental income 2,090 2,582 1,200 2,359 3,290 4,941 Intergovernmental charges 1,900 1,900 850 850 2,750 2,750 Use of money and property 8,200 27,491 1,500 4,233 9,700 31,724 Licenses and permits 12,000 13,384 5,650 9,638 17,650 23,022 Fines and forfeitures 21,000 24,509 21,000 24,509 Sale of property and compensation for loss 19 - 19 Miscellaneous local sources 231 273 - 504 State aid 54,500 79,850 54,500 79,850 Total revenues and other sources 530,521 573,959 137,786 146,362 668,307 720,321 Appropriated fund balance 57,067 10,000 67,067 $ 587,588 $ 147,786 S 735,374 Expenditures General government support $ 351,680 297,380 S 1,983 150 S 353,663 297,530 Public safety 24,019 22,426 24,019 22,426 Public health 200 75,000 75,000 75,200 75,000 Transportation 58,392 56,633 58,392 56,633 Economic assistance and opportunity 14,200 12,200 14,200 12,200 Culture and recreation 36,826 30,199 12,971 12,394 49,797 42,593 Home and community services 2,206 1,039 45,732 34,963 47,938 36,002 Employee benefits 100,065 98,804 12,100 11,472 112,165 110,276 Total expenditures $ 587,588 518,681 S 147,786 133,979 S 735,374 652,660 Revenues and other sources over expenditures 55,278 12,383 67,661 Fund balance, beginning of year 716,167 85,217 801,384 Fund balance, end of year S 771,445 S 97,600 S 869,045 See independent auditors' report on additional information. - 18 - TOWN OF GROTON Combining Balance Sheets - Regulator`, Basis - Special Revenue Funds December 31. 2006 See independent auditors' report on additional information. -19- Highway Highway Lighting Special Town -Wide Part -Town District Grant Fund Total Assets Unrestricted cash $ 8195182 $ 100,209 $ 33.433 $ 61,200 $ 1,014.024 Other receivables, net 87,064 8 , ,064 Total assets $ 8191182 $ 100,209 $ 33,433 $ 148,264 $ 1,1011088 Liabilities and fund equity Liabilities Accounts payable $ 118,513 $ 6,099 $ 398 $ 125,010 Accrued liabilities 12,961 12,961 Due to other governments - Deferred revenue $ 87,064 87,064 Total liabilities 1311474 6,099 398 87,064`25.035 Fund balances -reserved Reserves for encumbrances 146,464 146,464 Reserves for capital equipment 8,407 8,407 Total fund balances -reserved 154,871 154,871 Fund balances -unreserved Appropriated for ensuing year's budget 401000 20,000 601000 Unappropriated 492.837 741110 $ 331035 61,200 661,182 Total fund balances -unreserved 532,837 94,110 33,035 61,200 721.182 Total fund balances 687,708 94,110 335035 61,200 876,053 Total liabilities and fund balances $ 819,182 $ 100,209 $ 33,433 $ 148,264 $ 1,101,088 See independent auditors' report on additional information. -19- See independent auditors' report on additional information. -20- TOWN OF GROTQN Combining Statements of Operations and Changes in Fund -Equity - Regulat__oU s. - Special ReveputEunds For 'The Yen Ended December 31.2006 Fire Protection Special Highway Town -Wide Highway Part -Town Lighting District District Subtotal Grant Total Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Actual Actual Revenues and other sources Revenues Real property taxes $ 562,600 $ 562,600 $ 240,728 $ 240,728 $ 6,000 $ 6,000 $ 81,000 $ 81,000 $ 890,328 $ 890,328 $ 890,328 Use of money and property 156,612 184,244 2,500 5,146 1,014 159,112 190,404 $ 300 190,704 Sale of property/compensation of loss 200 200 - Miscellaneous local sources - State aid 103,570 107,442 103,570 107,442 314,506 421,948 Total revenue and other sources 719,412 746,844 346,798 353,316 6,000 7,014 81,000 81,000 1,153,210 1,188,174 314,806 1,502,980 Appropriated fund balance 401,570 10,000 411,570 $ 1,120,982 746,844 $ 356,798 353,316 $ 6,000 7,014 $ 81,000 81,000 $ 1,564,780 1,188,174 314,806 1,502,980 Expenditures Public safety $ 81,000 $ 81,000 $ 81,000 81,000 81,000 Transportation $ 979,108 7371,858 $ 325,622 324,496 $ 6,000 4,776 1,310,730 1,067,130 1,067,130 Home and community services 314,634 314,634 Employee benefits 86,874 81,210 31,176 28,838 118,050 110,048 110,048 Debt service - Total expenditures 1,065,982 819,068 356,798 353,334 6,000 4,776 81,000 81,000 1,509,780 1,258,178 314,634 1,572,812 Other uses Capital reserve 55,000 55,000 Total expenditures and other uses $ 1,120,982 819,068 $ 356,798 353,334 $ 6,000 4,776 $ 81,000 81,000 $ 1,564,780 1,258,178 3149634 1,572,812 Revenues and other sources over expenditures (72,224) (18) 2,238 (70,004) 172 (69,832) Fund balance, beginning of year 759,932 94,128 30,797 884,857 619028 945,885 Fund balance, end of year $ 687,708 $ 94,110 $ 33,035 $ - $ 814,853 $ 61,200 $ 876,053 See independent auditors' report on additional information. -20-