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Home My WebLink About2005 Town AuditTOWN OF GROTON FINANCIAL STATEMENTS DECEMBER 31, 2005 RECEIVED -FILED OFFICE OF THE TOWN CLERK 101 CONGER BLVD., GROTON, NY DATE ME ` `� PM I t` 4OWN CLERK ' TABLE OF CONTENTS IndependentAuditors' 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............................................................................................................................... Is Combining Balance Sheets - Regulatory Basis - Special Revenue Funds.....................................19 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - Special Revenue Funds................................................................................................................20 TOWN OF GROTON Financial Statements December 31. 2005 ' TABLE OF CONTENTS IndependentAuditors' 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............................................................................................................................... Is Combining Balance Sheets - Regulatory Basis - Special Revenue Funds.....................................19 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - Special Revenue Funds................................................................................................................20 MEMBER AICPA AND NYSSCPA MONDORF & FENWICK, PLLC CERTIFIED PUBLIC ACCOUNTANTS 523 COLUMBIA DRIVE JOHNSON CITY, NEW YORK 13790 TELEPHONE (607) 797-4339 INDEPENDENT AUDITORS' REPORT FAX (607) 797-3894 Supervisor and Town Board Town of Groton Groton, New York We have audited the accompanying financial statements of the governmental activities, of the Town of Groton, New York, as of December 31, 2005, 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 1, 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, 2005, 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 May 19, 2006 Liabilities and Equity Liabilities Accounts payable $ 5,566 $ 16,963 $ 22,529 $ 43,867 Accrued liabilities 3,000 13,877 16,877 14,633 Statutory installment bond TOWN OF GROTON - 54,478 Compensated absences $ 48,258 48,258 Combined All Fund Balance Sheet - Regulatory Tvpes and Account December 31, 2005 Rasis - Groups - 387 Other liabilities - 14,475 Due to other governments Total - 33,180 Deferred revenue Fiduciary 87,064 87,064 Memorandum Overpayment Governmental Fund Types Fund Type Account Groups Only Total liabilities 8,566 154,307 - - 48,258 Special Trust and Non-current Non-current December 31, General Revenue Agency Gov't Assets Gov't Liabilities Total 2004 Assets Encumbrances 16,575 118,383 134,958 61,570 Unrestricted cash $ 793,232 $ 1,013,128 216,832 186,328 $ 1,806,360 $ 1,625,227 Restricted cash 16,718 Excess dog control revenues 6,468 6,468 16,718 27,938 Other receivables, net 335,215 - - - 87,064 275,836 Fund balances- ulireserved 87,064 87,064 Fixed assets Appropriated for $ 2,884,598 2,884,598 2,884,589 Provision to be made in future 70,492 85,000 Unappropriated 717,599 590,670 1,308,269 1,185,787 budgets 768,091 610,670 - - - 1,378,761 1,270,787 $ 48,258 48,258 100,272 Total assets $ 809,950 $ 1,100,192 $ - $ 2,884,598 $ 48,258 $ 4,842,998 $ 4,725,090 Liabilities and Equity Liabilities Accounts payable $ 5,566 $ 16,963 $ 22,529 $ 43,867 Accrued liabilities 3,000 13,877 16,877 14,633 Statutory installment bond - 54,478 Compensated absences $ 48,258 48,258 45,794 Agency liabilities - 387 Other liabilities - 14,475 Due to other governments - 33,180 Deferred revenue 87,064 87,064 87,064 Overpayment 36,403 36,403 - Total liabilities 8,566 154,307 - - 48,258 211,131 293,878 Equity Investment in general fixed assets $ 2,884,598 2,884,598 2,884,589 Fund balances -reserved Encumbrances 16,575 118,383 134,958 61,570 Capital equipment 216,832 216,832 186,328 Unemployment insurance 10,250 10,250 10,060 Excess dog control revenues 6,468 6,468 17,878 Total fund balances -reserved 33,293 335,215 - - - 368,508 275,836 Fund balances- ulireserved Appropriated for ensuing year's budget 50,492 20,000 70,492 85,000 Unappropriated 717,599 590,670 1,308,269 1,185,787 Total fund balances -unreserved 768,091 610,670 - - - 1,378,761 1,270,787 Total fund balances 801,384 945,885 - 2,884,598 - . 4,631,867 4,431,212 Total liabilities and fund balances $ 809,950 $ 19100,192 $ - $ 2,884,598 $ 48,258 $ 4,842,998 $ 4,725,090 The accompanying notes are an integral part of these financial statements. -2- The accompanying notes are an integral part of these financial statements. -3- TOWN OF GROTON Combined Statements of Operations and Chances in Fund Equitv - $aulatory Basis - A,,11 Goverru=,ntal Fund TtiT__zss For The Year Ended December 31. 2005 Total Memorandum Governmental Fund Types Only Special December 31, General Revenue Total 2004 Revenues and other sources Revenues Real property taxes $ 411,367 $ 885,192 $ 1,296,559 $ 19168,980 Real property tax items 51642 5,642 69863 Non -property tax items 1099686 109,686 1701781 Departmental income 3,938 31938 41339 Intergovernmental charges 1,620 1,620 850 Use of money and property 14,656 180,118 194,774 230,672 Licenses and permits 239136 23,136 21,974 Fines and forfeitures 28,522 28,522 185793 Sale of property and compensation for loss 46 4,140 41186 163793 Miscellaneous local sources 655 655 290 State aid 72,225 949101 166,326 3195438 671,493 15163,551 19835,044 1,9595773 Expenditures General government support 2871075 287,075 2599820 Public safety 209786 78,000 98,786 915157 Public health 721185 72,185 69,000 Transportation 53,564 8005841 854,405 -978,616 Economic assistance and opportunity 10,670 10,670 10,219 Culture and recreation 38,702 38,702 35,491 Home and community services 39,211 41884 44,095 217,939 Employee benefits 769678 95,518 1721196 1535185 Debt service 56,284 56,284 30,753 598,871 11035,527 1,634,398 1,846,180 Revenues and other sources over expenditures 72,622 128,024 200,646 1139593 Fund balances, beginning of year 728,762 8171861 1,546,623 1,433,030 Fund balances, end of year $ 801,384 $ 945,885 $ 11747,269 $ 1,546,623 The accompanying notes are an integral part of these financial statements. -3- Revenues and other sources Revenues Real property taxes Real property tax items Non -property tax items Departmental income Intergovernmental charges Use of money and property Licenses and permits Fines and forfeitures Sale of property and compensation for loss Miscellaneous local sources State aid Total revenues Appropriated fund balance TOV1N OF GROTON Combined Statements of Operations and Changes, in Fund Equity - Regulators, Basis - Bud, -,et and Actual - General and Special Revenue Funds For The Year End December 31, 2005 General Fund Variance Modified favorable Modified Budget Actual (unfavorable) Budget $ 411,367 $ 411,367 7,500 5,642 $ 101,100 109,686 2,490 3,938 1,620 1,620 8,600 14,656 17,650 23,136 16,750 28,522 78,000 46 Public health 655 54,600 72,225 621,677 671,493 $ 45,000 55,950 $ 666,677 2,386 Special Revenue Vanance favorable Actual (unfavorable) $ 885,192 $ 885,192 (1.858) 8,586 1,448 6,056 170,072 179,827 $ 9,755 5,486 11,772 46 4,140 4,140 655 329,286 17,625 91,783 94,101 49,816 1,151,187 1,163,260 $ Public safety 106,570 $ 1,257,757 Expenditures General government support $ 329,286 287,075 $ 42,211 Public safety 22,688 20,786 1,902 $ 78,000 78,000 Public health 72,350 72,185 165 Transportation 55,950 53,564 2,386 998,336 800,841 $ Economic assistance and opportunity 12,670 10,670 2,000 Culture and recreation 40,992 38,702 2,290 Home and community services 47,622 39,211 89411 Employee benefits 85,219 76,678 8,541 99,718 95,518 Debt service 56.285 56,284 666,777 598,871 67,906 1,232,339 1,030,643 Other uses Capital reserve 2 5,4 18 Total expenditures and other uses $ 666,777 598,871 $ 67,906 $ 1,257,757 1,030,643 $ Revenues and other sources over expenditures 72,622 132,617 Net change in unbudgeted special revenue funds (4,593) Fund balances, beginning of year 728,762 817,861 Fund balances, end of year $ 801,384 $ 945,885 The accompanying notes are an integral part of these financial statements. -4- 2,318 12,073 197,495 4,200 201,696 25,418 227,114 [1 TOWN OF GROTON Notes to the Financial Statements December 31, 2005 1. Summary of significant a0countin4 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. Reporting 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 lavas. 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 which 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. TOWN OF GROTON Notes to the Financial Statements December )1, 2005 1. Summary of sirrnificant accountin^ -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 tv-pes 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, 2005 1. Summary of significant accounting policies (continued) Fiduciary fund ty-ne 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 Qroups 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 for general government purposes. b. Non-current government liability group This grouping accounts for all non-current liabilities of the Town. C. Basis of accountin.a/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. ,476dif ed ACCT-ual 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. TOWN OF GROTON Notes to the Financial Statements December 31, 200 1. Summary of significant accounting 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, 2005 1. Summary of significant accounting policies (continued) E. Budgets and budgetary accounting 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 proposed expenditures and the proposed means of financing for all funds. b. After public hearings are conducted to obtain taxpaver 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 the two statements. TOWN OF GROTON Notes to the Financial Statements December 31, 2005 1. Summary of significant accounting policies (continued) E. Budgets and budgetary accounting (continued) Fund Balance Beginning of Year Revenues Total for funds included in budget comparison $ Funds not included in budget comparison Special grant Fund Balance End Expenditures of Year 7521240 $ 11163,260 $ 110301643 $ 884,857 65,621 291 4,884 611028 Total special revenue funds $ 817,861 $ 11163,551 $ 1,035,527 $ 945,885 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. _10- TOWN OF GROTON Notes to the Financial Statements December 31, 2005 1. Summary of significant accountiuT 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 -related payments 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. -11- TOWN OF GROTON Notes to the Financial Statements December 31, 2005 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, 2005 were $1,834,697, and included the following: Fund Bank Balance Coverage General $ 816,710 Insured, Collateralized Special Revenue $ 1,013,128 Insured, Collateralized Agency $ 4,859 Insured, Collateralized 3. Summary of changes in non-current government assets Balance Balance 12/31/04 Additions Deletions 12/31 /05 Land $ 56300 $ 56300 Buildings 7309058 730,058 Machinery & Equipment 1,5911531 $ 35,974 $ (35,965) 1,591,540 $ 21884,589 $ 359974 $ (35,965) $ 21884,598 4. Other receivables Other receivables at December 31, 2005 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 2005. In 2004 the Town Board authorized the Town Attorney to commence foreclosure proceedings. The Town Attorney has initiated these proceedings however, collectibility cannot be reasonably estimated. -12- ' S. TOVGTN OF GROTON Notes to the Financial Statements December 31, 2005 Employees' 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 Law (NTYSRSSL). The State comptroller is sole trustee and administrative head of the S37 stem. 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. Fundiner 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: 2005 $ 27,949 2004 $ 33,180 2003 $ 24,449 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 Laves 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 31, 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- TOIAN OF GROTON Notes to the Financial Statements December 31, 2005 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 251X0 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 $3,194 were recognized for post -employment health care. 7. Non-current Government liabilities Compensated Absences - The Town has compensated absences outstanding as of December 31, 2005 in the amount of $48,258. 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 $13 6,194 on August 1, 2001 for partial financing of a 2001 model Caterpillar excavator. The bond was payable in annual installments of S27,238, 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 27,239 11171 $ 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. 2005 8. Fund equity -reserves The following reserves existed at December 31, 2005 for the following purposes: Fund General — Town wide General — Town wide General — Town wide Highway — Town wide Highway — Town wide Purpose Unemployment reserve Excess dog control revenues Encumbrances Encumbrances Capital equipment reserve -15- Amount $ 10,250 6,468 16,575 118,383 2161832- 368,508 16,832368,508 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 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 2005 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 May 19, 2006 -16- TOWN OF GROTQN Combining Balance Sheet - E�-,gulatonr Basis - General Fund December 31. 2005 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 Reserve for excess dog control revenues 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 $ 7069724 $ 86,508 $ 793,232 16,718 169718 $ 7239442 $ 869508 $ 8095950 $ 4,665 $ 901 $ 51566 29610 390 31000 0 0 71P275 1,291 83,566 109250 10,250 169575 169575 65468 65468 33,293 339293 405492 109000 501492 6429382 75,217 717,599 682,874 85,217 7689091 7165167 851217 801,384 $ 723,442 $ 86,508 $ 8091P950 See independent auditors' report on additional information. -17- 'OWN OF GROTON CombininL Statements of Operations and Changes in Fund EquiJX - Rea It atory Basis - General Fund For The Year Ended December 31. 2005 See independent auditors' report on additional infonnation. -18- Town -Wide Part -Town Total Modified Budget Actual Modified Budget Actual Modified Budget Actual Revenues and other sources Revenues Real property taxes $ 288,925 $ 288,925 $ 122,442 $ 122,442 $ 411,367 $ 411,367 Real property tax items 7,500 5,642 7,500 5,642 Non -property tax items 100,000 107,561 1,100 2,125 101,100 109,686 Departmental income 1,790 2,269 700 1,669 2,490 3,938 Intergovernmental charges 770 770 850 850 1,620 1,620 Use of money and property 7,100 12,811 1,500 1,845 8,600 14,656 Licenses and permits 12,000 14,316 5,650 8,820 17,650 23,136 Fines and forfeitures 16,750 28,522 16,750 28,522 Sale of property and compensation for loss 46 - 46 Miscellaneous local sources 622 33 - 655 State aid 54,600 72,225 54,600 72,225 Total revenues and other sources 489,435 533,709 132,242 137,784 621,677 671,493 Appropriated fund balance 35,000 10,000 45,000 $ 524,435 $ 142,242 $ 666,677 Expenditures General government support $ 326,748 286,925 $ 2,538 150 $ 329,286 287,075 Public safety 2,688 20,786 22,688 20,786 Public health 350 185 72,000 72,000 72,350 72,185 Transportation 55,950 53,564 55,950 53,564 Economic assistance and opportunity 12,670 10,670 12,670 10,670 Culture and recreation 29,103 27,410 11,889 11,292 40,992 38,702 Home and community services 3,206 881 44,416 38,330 47,622 39,211 Employee benefits 73,820 71,779 11,399 4,899 85,219 76,678 Total expenditures $ 524,535 472,200 $ 142,242 126,671 $ 666,777 598,871 Revenues and other sources over expenditures 61,509 11,113 72,622 Fund balance, beginning of year 654,658 74,104 728,762 Fund balance, end of year $ 716,167 $ 85,217 $ 801,384 See independent auditors' report on additional infonnation. -18- TOWN OF GROTON Combinin,Balance Sheets - Regulaton, Ra.sis - Special Revenue Funds December 31, 2005 See independent auditors' report on additional information. - 19- Highway Highway Lighting Special Town -Wide Part -Town District Grant Fund Total Assets Unrestricted cash $ 8235170 $ 98,133 $ 30,797 $ 61,028 $ 190131128 Other receivables, net 87,064 879064 Total assets $ 823,170 $ 98,133 $ 30,797 $ 148,092 $ 11100,192 Liabilities and fund equity Liabilities Accounts payable $ 12,958 $ 49005 $ 16,963 Accrued liabilities 13,877 13,877 Due to other governments 0 Deferred revenue $ 87,064 871064 Overpayment 36,403 36,403 Total liabilities 63,238 41M5 - 87,064 154,307 Fund balances -reserved Reserves for encumbrances 1185383 118,383 Reserves for capital equipment 216,832 216,832 Total fund balances -reserved 335,215 335,215 Fund balances -unreserved Appropriated for ensuing year's budget 1000 1000 209000 Unappropriated 414,717 841)128 $ 30,797 61,028 590,670 Total fund balances -unreserved 4243717 94,128 30,797 61,028 610,670 Total fund balances 759,932 941Y128 30,797 61,028 945,885 Total liabilities and fund balances $ 823,170 $ 98,133 $ 30,797 $ 148,092 $ 111005192 See independent auditors' report on additional information. - 19- MMMMMMMM MMMMM A/ago] C • • sell 1 1. (4qjIIVd4 ON V-18 it) IRM.) UNIT -MITT -Ty "1=111 IRWITINIRTUTre ILI Wei= witignew-ImemeNNEIYURMa• 1 See independent auditors' report on additional information. -20- 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 $ 573,204 $ 573,204 $ 227,988 $ 227,988 $ 6,000 $ 6,000 $ 78,000 $ 78,000 $ 885,192 $ 885,192 $ 885,192 Use of money and property 167,572 174,648 2,500 4,716 463 170,072 179,827 $ 291 180,118 Sale of property/compensation of loss 4,140 4,140 49140 4,140 4,140 Miscellaneous local sources 0 0 State aid 91,783 949101 91,783 94,101 94,101 Total revenue and other sources 744,916 751,992 322,271 326,805 6,000 6,463 78,000 78,000 1,151,187 1,163,260 291 1,163,551 Appropriated fund balance 96,570 10,000 106,570 $ 841,486 751,992 $ 332,271 326,805 $ 6,000 6,463 $ 78,000 78,000 $ 1,257,757 19163,260 291 1,163,551 Expenditures Public safety $ 78,000 $ 78,000 $ 78,000 78,000 78,000 Transportation $ 685,026 489,094 $ 307,310 306,976 $ 6,000 4,771 998,336 800,841 800,841 Home and community services 4,884 4,884 Employee benefits 74,757 71,419 24,961 24,099 99,718 95,518 95,518 Debt service 56,285 56,284 56,285 56,284 56,284 Total expenditures 816,068 616,797 332,271 331,075 6,000 4,771 78,000 78,000 19232,339 1,030,643 4,884 1,035,527 Other uses Capital reserve 25,418 25,418 Total expenditures and other uses $ 841,486 616,797 $ 332,271 331,075 $ 6,000 4,771 $ 78,000 78,000 $ 1,257,757 1,030,643 4,884 1,035,527 Revenues and other sources over expenditures 1351195 (4,270) 1,692 132,617 (4,593) 128,024 Fund balance, beginning of year 624,737 989398 29,105 752,240 65,621 817,561 Fund balance, end of year $ 759,932 $ 949128 $ 30,797 $ - $ 884,857 $ 61,028 $ 945,885 See independent auditors' report on additional information. -20-