The URL can be used to link to this page

Home My WebLink About2004 Town AuditKIRBY • BEALS • MAIE R Certified Public Accountants, PLLC RECEIVED - FILED OFFICE OF THE TOWN CLERK 101 CONGER BLVD., GROTON, NY DATE lb &> J �IME PM yv.. �>ATOWN CLERK KIRBY 0 BEALS . MAIER CPAs, PLLC TOWN OF GROTON FINANCIAL STATEMENTS DECEMBER 31, 2004 TOWN OF GROTON Financial Statements December 31, 2004 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.............................................................15 Combining Balance Sheet - Regulatory Basis - General Fund......................................................16 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - General Fund...............................................................................................................................17 Combining Balance Sheets - Regulatory Basis - Special Revenue Funds.....................................18 Combining Statements of Operations and Changes in Fund Equity - Regulatory Basis - Special Revenue Funds................................................................................................................19 KIRBY • BEALS • MAIER Certified Public Accountants 221 W. Church St. INDEPENDENT AUDITORS' REPORT Elmira, NY 14901-2917 607-733-5548 Fax 607-737-1996 kirbybealsmaier@kbm-cpa.com 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, 2004, 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. ■ presentation. We believe that our audit provides a reasonable basis for our opinion. 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 r 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. September 1, 2005 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 r 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, 2004, and the results of its operations for 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 theses specified parties. Y p '6 KIRBY • BEALS • MAIER Certified Public Accountants, PLLC September 1, 2005 Assets Unrestricted cash Restricted cash Other receivables, net Due from state government Fixed assets Provision to be made in future budgets Total assets Liabilities and Equity Liabilities Accounts payable Accrued liabilities Statutory installment bond Compensated absences Agency liabilities Other liabilities Due to other governments Deferred revenue Total liabilities Equity Investment in general fixed assets Fund balances -reserved Encumbrances Capital equipment Unemployment insurance 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 ■ MMONEMONEMMM ■ mom 43,867 $ ■ on ■ 12,122 TOWN OF GROTON 14,633 10,791 $ 54,478 Combined Balance Sheet - Reizulatory Basis - 81,716 45,794 45,794 All Fund Twes and Account Grou_ns $ 387 387 December 31, 2004 14,475 20,980 12,200 33,180 Total 87,064 Fiduciary 87,064 Memorandum Governmental Fund Types Fund Type Account Groups 144,386 387 Only 293,878 283,862 Special Trust and Non-current Non-current 2,884,589 December 31, General Revenue Agency Gov't Assets Gov't Liabilities Total 150,083 2003 $ 749,657 $ 875,183 $ 387 $ 1,625,227 $ 1,465,551 27,938 10,060 9,976 27,938 9,976 17,878 87,064 27,938 87,064 87,064 28,736 $ 2,884,589 2,884,589 2,692,556 $ 100,272 100,272 125,565 $ 777,595 $ 962,247 $ 387 $ 2,884,589 $ 100272 $ 4,725,090 $ 4,409,448 $ 10,867 $ 33,000 $ 43,867 $ 60,442 2,511 12,122 14,633 10,791 $ 54,478 54,478 81,716 45,794 45,794 43,849 $ 387 387 14,475 14,475 20,980 12,200 33,180 87,064 87,064 87,064 48,833 144,386 387 100,272 293,878 283,862 $ 2,884,589 2,884,589 2,692,556 61,570 61,570 150,083 186,328 186,328 159,864 10,060 10,060 9,976 17,878 17,878 26,394 27,938 247,898 2755836 346,317 40,000 45,000 85,000 233,226 660,824 524,963 1,185,787 853,487 700,824 569,963 1,270,787 1,086,713 728,762 817,861 2,884,589 4,431,212 4,125,586 $ 777,595 $ 962,247 $ 387 $ 2,884,589 $ 100,272 $ 4,725,090 $ 4,409,448 The accompanying notes are an integral part of these fmancial statements. -2- TOWN OF GROTON Combined Statements of Overations and Chanizes in Fund Equitv - Re2ulatory Basis - All Governmental Fund Types For The Year Ended December 31, 2004 The accompanying notes are an integral part of these financial statements. -3- Total Memorandum Governmental Fund Types Only Special December 31, General Revenue Total 2003 Revenues and other sources Revenues Real property taxes $ 3795967 $ 7895013 $ 191685980 $ 1,106,855 Real property tax items 65863 6,863 10,006 Non -property tax items 1705781 1701781 54,001 Departmental income 45339 45339 235781 Intergovernmental charges 850 850 25380 Use of money and property 75649 223,023 2305672 107,100 Licenses and permits 21,974 21,974 19,993 Fines and forfeitures 185793 18,793 14,639 Sale of property and compensation for loss 5,194 11,599 16,793 78 Miscellaneous local sources 191 99 290 537 State aid 765142 2431296 319,438 346,170 6925743 152675030 15959,773 1,685,540 6921743 1,267,030 15959,773 156855540 Expenditures General government support 2595820 259,820 2485347 Public safety 165157 75,000 91,157 875358 Public health 695000 69,000 665327 Transportation 51,549 9275067 978,616 673,174 Economic assistance and opportunity 10,219 105219 7,066 Culture and recreation 355491 35,491 30,435 Home and community services 42,424 1755515 217,939 2021196 Employee benefits 73,117 80,068 153,185 124,740 Debt service 30,753 301753 315924 5575777 152885403 1,846,180 154715567 Revenues and other sources over expenditures 1345966 (215373) 113,593 2135973 Fund balances, beginning of year 5935796 839,234 1,4335030 112195057 Fund balances, end of year $ 7285762 $ 817,861 $ 155465623 $ 134335030 The accompanying notes are an integral part of these financial statements. -3- Expenditures General government support $ 297,006 TOWN OF GROTON 37,186 Combined Statements of Operations and Changes in Fund Eauity - Regulatory Basis - 16,157 8,038 $ 75,000 Budget and Actual - General and Special Revenue Funds Public health 69,250 69,000 250 For The Year End December 31, 2004 Transportation 54,152 51,549 General Fund 1,118,547 Special Revenue 191,480 Economic assistance and Variance Variance Modified favorable Modified 2,000 favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Revenues and other sources Home and community services 49,128 42,424 Revenues Employee benefits 73,792 Real property taxes $ 379,967 $ 379,967 $ 789,013 $ 789,013 Debt service Real property tax items 5,300 6,863 $ 1,563 30,753 30,753 Non -property tax items 49,100 170,781 121,681 58,648 1,309,637 1,112,888 Departmental income 2,490 4,339 1,849 Intergovernmental charges 850 850 Use of money and property 12,600 7,649 (4,951) 231,784 222,733 $ (9,051) Licenses and permits 17,150 21,974 4,824 220,996 Revenues and other sources Fines and forfeitures 16,750 18,793 2,043 over expenditures Sale of property and 134,966 (125) compensation for loss 5,118 5,194 76 13,099 11,599 (1,500) Miscellaneous local sources revenue funds 191 191 99 99 State aid 55,600 76,142 20,542 89,405 89,319 (86) Total revenues 544,925 692,743 $ 147,818 1,123,301 1,112,763 $ (10,538) Appropriated fund balance 71,500 817,861 210,583 $ 616,425 $ 1,333,884 Expenditures General government support $ 297,006 259,820 $ 37,186 Public safety 24,195 16,157 8,038 $ 75,000 75,000 Public health 69,250 69,000 250 Transportation 54,152 51,549 2,603 1,118,547 927,067 $ 191,480 Economic assistance and opportunity 12,219 10,219 2,000 Culture and recreation 36,683 35,491 1,192 Home and community services 49,128 42,424 6,704 Employee benefits 73,792 73,117 675 85,337 80,068 5,269 Debt service 30,753 30,753 616,425 557,777 58,648 1,309,637 1,112,888 196,749 Other uses Capital reserve 24,247 24,247 Total expenditures and other uses $ 616,425 557,777 $ 58,648 $ 1,333,884 1,112,888 $ 220,996 Revenues and other sources over expenditures 134,966 (125) Net change in unbudgeted special revenue funds (21,248) Fund balances, beginning of year 593,796 839,234 Fund balances, end of year $ 728,762 $ 817,861 The accompanying notes are an integral part of these financial statements. -4- L ■ TOWN OF GROTON Notes to the Financial Statements December 31, 2004 1. Summary of sijznificant 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. Reporting entity 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 e the reporting entity. The financial reporting entity consists of a) the primary government which is the Town 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 e the reporting entity. 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- 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. -5- 0 TOWN OF GROTON Notes to the Financial Statements t December 31, 2004 1. Summary of significant accounting policies (continued) 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, i 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- B. Fund accountinj4 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 r 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 i 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, i 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, 2004 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 for general 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, 2004 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, 2004 1. Summary of significant accounting policies (continued) E. Budizets and budj�etary 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 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 the two statements. TOWN OF GROTON Notes to the Financial Statements December 31, 2004 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 Total special revenue funds Fund Balance Beginning of Year Revenues Fund Balance End Expenditures of Year $ 7529365 $ 1,112,763 $ 111125888 $ 752,240 86,869 1545267 175,515 655621 $ 8391234 $ 1,2671030 $ 192881403 $ 81701 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, 2004 1. Summary of significant accounting policies (continued) G. Vacation and sick leave and compensated absences (continued) M 2. Cash and investments 0 The Town's investment policies are governed by State of New York statutes. In addition, the 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. ■ Federal Deposit Insurance. Obligations that may be pledged as collateral are obligations of the Further, the Town recognizes a liability for vesting sick leave and other compensated i 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. M 2. Cash and investments 0 The Town's investment policies are governed by State of New York statutes. In addition, the 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 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 i 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, 2004 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, 2004 were $1,670,378, and included the following: Fund Bank Balance Coverage General $ 782,594 Insured, Collateralized Special Revenue $ 8751183 Insured, Collateralized Agency $ 1201 Insured, Collateralized 3. Summary of changes in non-current government assets Land Buildings Machinery & Equipment 4. Other receivables Balance Balance 12/31/03 Additions Deletions 12/31/04 $ 5631000 $ 56300 7301059 730,059 1,399,497 $ 2855294 $ (93,261) 19591,530 $ 256925556 $ 285,294 $ (93,261) $ 2,884,589 Other receivables at December 31, 2004 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 2004. 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- ■ ■ ■ TOWN OF GROTON ■ Notes to the Financial Statements December 31, 2004 ■ 5. Emp tov ees' 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 (NYSRSSL). The State comptroller is sole trustee and ■ administrative head of the System. ■ The Town is required to contribute at an actuarial determined rate. The required contributions for the current year and two preceding years were: ■ 2004 $ 335180 2003 $ 241449 2002 $ 968 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 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 ■ 151 1989. ■ L! ■ -13- 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. ■ Funding policv ■ 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: ■ 2004 $ 335180 2003 $ 241449 2002 $ 968 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 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 ■ 151 1989. ■ L! ■ -13- TOWN OF GROTON Notes to the Financial Statements December 31, 2004 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. Non-current government liabilities Compensated Absences - The Town has compensated absences outstanding as of December 31, 2004 in the amount of $45,794. 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 $136,194 on August 1, 2001 for partial financing of a 2001 model Caterpillar excavator. The bond is payable in annual installments of $27,238, with the first principal payment being made on August 1, 2002. Semi-annual interest payments are due each February and August, and is calculated on the principal balance at a rate of 4.3%. The First National Bank of Groton is the registered holder of the bond. Maturity date of the bond is August 1, 2006. The bond debt service requirements for the next two years are as follows: Principal Interest 2005 $ 271239 $ 2,343 2006 271239 1,171 $ 541478 $ 31514 During year -ending December 31, 2005, the Town paid the outstanding principal balance of $54,478. 7. Fund equity -reserves The following reserves existed at December 31, 2004 for the following purposes: -14- Fund Purpose Amount General — Town wide Unemployment reserve $ 101060 General — Town wide Excess dog control revenues 175878 Highway — Town wide Encumbrances 61,570 Highway — Town wide Capital equipment reserve 186,328 $ 275,836 -14- KIRBY • BEALS • MAIER Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON ADDITIONAL INFORMATION Supervisor and Town Board Town of Groton Groton, New York 221 W. Church St. Elmira, NY 14901-2917 607-733-5548 Fax 607-737-1996 kirbybealsmaier@kbm-cpa.com Our report on our audit of the financial statements of the Town of Groton for 2004 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 16 through 19 is 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. KIRBY • BEALS • MAIER Certified Public Accountants, PLLC September 1, 2005 -15- TOWN OF GROTON Combining Balance Sheet - ReQmlatory Basis - General Fund December 31, 2004 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 $ 6675701 $ 815956 $ 7491657 27,938 275938 $ 6959639 $ 815956 $ 7775595 $ 95892 $ 975 $ 105867 2,134 377 2,511 14,475 145475 141480 65500 205980 409981 75852 489833 105060 105060 179878 175878 275938 275938 305000 109000 4000 5965720 641104 6605824 6269720 745104 700,824 654,658 741104 7289762 $ 6955639 $ 815956 $ 777,595 See independent auditors' report on additional information. -16- ■ ■ TOWN OF GROTON Combining Statements of Operations and Chanizes in Fund Equity - Regulatory Basis - General Fund ■ For The Year Ended December 31, 2004 ■ ■ Town -Wide Part -Town Total Modified Budget Actual Modified Budget Actual Modified Budget Actual Revenues and other sources Revenues ■ Real property taxes $ 270,886 $ 270,886 $ 109,081 $ 109,081 $ 379,967 $ 379,967 Real property tax items 5,300 6,863 5,300 6,863 Non -property tax items 48,000 169,368 1,100 1,413 49,100 170,781 Departmental income 1,790 2,414 700 1,925 2,490 4,339 Intergovernmental charges 850 850 850 850 Use of money and property 10,100 6,613 2,500 1,036 12,600 7,649 ■ Licenses and permits 12,000 13,358 5,150 8,616 17,150 21,974 Fines and forfeitures 16,750 18,793 16,750 18,793 ■ Sale of property and compensation for loss 5,118 5,194 5,118 5,194 Miscellaneous local sources 191 191 . State aid 55,600 76,142 55,600 76,142 Total revenues and other sources 425,544 569,822 119,381 122,921 544,925 692,743 Appropriated fund balance 56,000 15,500 71,500 $ 481,544 $ 134,881 $ 616,425 ■ Expenditures General government support $ 295,927 259,670 $ 1,079 150 $ 297,006 259,820 Public safety 24,195 16,157 24,195 16,157 Public health 250 69,000 69,000 69,250 69,000 Transportation 54,152 51,549 54,152 51,549 ■ Economic assistance and opportunity 12,219 10,219 12,219 10,219 Culture and recreation 25,185 24,135 11,498 11,356 36,683 35,491 . Home and community services 7,200 4,271 41,928 38,153 49,128 42,424 Employee benefits 62,416 62,241 11,376 10,876 73,792 73,117 Total expenditures $ 481,544 428,242 $ 134,881 129,535 $ 616,425 557,777 Revenues and other sources over expenditures 141,580 (6,614) 134,966 Fund balance, beginning of year 513,078 80,718 593,796 ■ Fund balance, end of year $ 654,658 $ 74,104 $ 728,762 ■ See independent auditors' report on additional information. -17- i TOWN OF GROTON Combining Balance Sheets - ReRulatory Basis - SDecial Revenue Funds December 31, 2004 Highway Highway Lighting Special Town -Wide Part -Town District Grant Fund Total Assets 125122 Due to other governments 6,400 55800 Unrestricted cash $ 6635942 $ 1165143 $ 295477 $ 65,621 $ 8755183 Other receivables, net $ 87,064 87,064 87,064 Total assets $ 6635942 $ 1163143 $ 29,477 $ 152,685 $ 962,247 Liabilities and fund equity Liabilities Accounts payable $ 2003 $ 115945 $ 372 $ 335000 Accrued liabilities 12,122 125122 Due to other governments 6,400 55800 121200 Deferred revenue $ 87,064 875064 Total liabilities 39,205 175745 372 875064 144,386 Fund balances -reserved Reserves for encumbrances 615570 61,570 Reserves for capital equipment 1865328 186,328 Total fund balances -reserved 2471898 2475898 Fund balances -unreserved Appropriated for ensuing year's budget 35,000 1000 45,000 Unappropriated 341,839 88,398 291105 65,621 5241963 Total fund balances -unreserved 376,839 98,398 29,105 655621 569,963 Total fund balances 6241737 981398 295105 65,621 8175861 Total liabilities and fund balances $ 6631942 $ 116,143 $ 291477 $ 1525685 $ 962,247 See independent auditors' report on additional infonnation. - 18 - NONE NNONNNNN NNNNOMMOMENNOOMMONNO TOWN OF GROTON Combining Statements of Operations and Chances in Fund Equity - Regulatory Basis - Special Revenue Funds For The Year Ended December 31, 2004 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 $ 501,700 $ 501,700 $ 206,313 $ 206,313 $ 6,000 $ 6,000 $ 75,000 $ 75,000 $ 789,013 $ 789,013 $ 789,013 Use of money and property 226,784 220,675 5,000 1,789 269 231,784 222,733 $ 290 223,023 Sale of property/compensation of loss 13,099 11,599 13,099 11,599 11,599 Miscellaneous local sources 14 85 99 99 State aid 89,405 89,319 89,405 89,319 153,977 243,296 Total revenue and other sources 741,583 733,988 300,718 297,506 6,000 6,269 75,000 75,000 1,123,301 1,112,763 154,267 1,267,030 Appropriated fund balance 185,583 25,000 210,583 $ 927,166 733,988 $ 325,718 297,506 $ 6,000 6,269 $ 75,000 75,000 $ 1,333,884 1,112,763 154,267 1,267,030 Expenditures Public safety $ 75,000 $ 75,000 $ 75,000 75,000 75,000 Transportation $ 813,067 655,054 $ 299,480 267,546 $ 6,000 4,467 1,118,547 927,067 927,067 Home and community services 175,515 175,515 Employee benefits 59,099 55,652 26,238 24,416 85,337 80,068 80,068 Debt service 30,753 30,753 30,753 30,753 30,753 Total expenditures 902,919 741,459 325,718 291,962 6,000 4,467 75,000 75,000 1,309,637 1,112,888 175,515 1,288,403 Other uses Capital reserve 24,247 24,247 Total expenditures and other uses $ 927,166 741,459 $ 325,718 291,962 $ 6,000 4,467 $ 75,000 75,000 $ 1,333,884 1,112,888 175,515 1,288,403 Revenues and other sources over expenditures (7,471) 5,544 1,802 (125) (21,248) (21,373) Fund balance, beginning of year 632,208 92,854 27,303 752,365 86,869 839,234 Fund balance, end of year $ 624,737 $ 98,398 $ 29,105 $ - $ 752,240 $ 65,621 $ 817,861 See independent auditors' report on additional information. -19-