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Home My WebLink About1997 Town AuditNolis & Beals Certified Public Accountants Jan E. Nolis, C.P.A. Rick O. Beals, C.P.A. TOWN OF GROTON Report on Audit of Financial Statements For the Year Ended December 31, 1997 210 Front Street • Owego, New York 13827 - Telephone & Fax: (607) 687-4317 P.O. Box 589 - 823 NYS Route 13 • Cortland, New York 13045 - Telephone & Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants TOWN OF GROTON Contents Independent Auditors' Report ................................... 1 Combined Balance Sheet - All Fund Types and Account Groups..... 2 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types ............. 3 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget & Actual - General and Special Revenue Funds ..................................... 4 Notes to the Financial Statements ............................. 5-16 Independent Auditors' Report on Additional Information......... 17 Combining Balance Sheet - General Fund ......................... 18 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund ............................ 19 Combining Balance Sheet - Special Revenue Funds ................ 20 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Special Revenue Funds ................... 21 Independent Auditors' Report on Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards ...................................... 22-23 Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards................................................. 24 Nolis & Beals Certified Public Accountants Jan E. Nolis, C.P.A. Rick O. Beals, C.P.A. INDEPENDENT AUDITORS' REPORT Supervisor and Town Board Town of Groton Groton, New York We have audited the accompanying general purpose financial statements of the Town of Groton, New York, as of December 31, 1997, and for the year then ended. These general purpose financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the Town of Groton as of December 31, 1997, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. March 25, 1998 Owego, New York —1- 210 Front Street • Owego, New York 13827 • Telephone & Fax: (607) 687-4317 P.O. Box 589 • 823 NYS Route 13 • Cortland, New York 13045 • Telephone &. Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants Town of Groton Combined Balance Sheet All Fund Types and Account Groups December 31, 1997 Assets Unrestricted cash Restricted cash Due from other governments Prepaid expenses Other receivables, net Fixed assets Provision to be made in future budgets Liabilities and Equity Liabilities Accounts payable Accrued liabilities Compensated absences Agency liabilities Deferred revenue Equity Investment in general fixed assets Fund balances -reserved Encumbrances Capital Unemployment insurance Excess dog control revenues Retirement system credits Total fund balances -reserved Fund balances -unreserved Appropriated - ensuing year's budget Unappropriated Total fund balances -unreserved Governmental Fund Types Special Capital General Revenue Projects $ 138, 522 $ 229f820 $ 0 0 8t388 58,185 3, 600 0 0 11,264 0 0 0 126, 961 0 0 0 0 0 0 0 153f386 365, 169 58, 185 4, 678 13, 003 0 169 4, 675 0 0 0 0 0 0 0 0 126, 961 0 4,847 144,639 0 0 0 0 0 0 0 0 0 58f185 0 8, 388 0 4, 340 0 0 7,321 0 0 11f661 8, 388 58, 185 27, 000 37,500 0 109f878 174, 642 0 136f878 212, 142 0 148, 539 220, 530 58, 185 $ 153,386 $ 365,169 $ 58t185 Nolis & Beals Certified Public Accountants Fiduciary Fund Type Account Groups Trust and General Long -Term Agency Fixed Assets Debt $ 17f199 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2, 376, 825 0 0 0 23f688 17f199 2, 376, 825 23f688 0 0 0 0 0 0 0 0 23f688 17, 199 0 0 0 0 0 17, 199 0 23, 688 0 2, 376, 825 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2, 376, 825 0 0 0 0 0 0 0 0 0 0 0 2, 376, 825 0 $ 17, 199 $ 21376,825 $ 23, 688 The accompanying notes are an integral part of these financial statements. -2- Nolis & Beals Certified Public Accountants Town of Groton Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types For the Year Ended December 31, 1997 Governmental Fund Types Special Capital General Revenue Projects Revenues and other sources Revenues Real property taxes Real property tax items Nonproperty 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 Federal aid Other sources Operating transfers Retirement system credits Expenditures General government support Public safety Public health Transportation Economic assistance and opportunity Culture and recreation Home and community services Employee benefits 341, 594 $ 4, 685 11009 2, 568 4, 552 10, 831 15, 714 8,218 160 130 72f829 0 462, 290 0 (1,378) 4 60, 912 230f747 13r134 55, 000 40f681 111008 18f349 30,019 27, 479 426, 417 Other uses Operating transfers 0 Revenues and other sources over (under) expenditures 34,495 Fund balances, beginning of year 114,044 Fund balances, end of year $ 148,539 $ The accompanying notes are an integral part of these financial statements. -3- 477,860 $ 0 0 4f 953 0 122,337 0 0 4,230 0 76f 172 124f835 810,387 0 0 810, 387 0 62, 000 0 503, 964 0 0 133,774 34, 167 733, 905 45, 000 0 0 0 0 0 375 0 0 0 0 0 0 375 45, 000 0 45,375 0 0 0 0 0 0 0 0 0 0 31, 482 45,375 189r048 12f810 220f530 $ 58,185 Nolis & Beals Certified Public Accountants Town of Groton Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget & Actual - General and Special Revenue Funds For the Year Ended December 31, 1997 Governmental Fund Types General Fund Variance Modified favorable Budget Actual (unfavorable) Revenues and other sources Revenues Real property taxes Real property tax items Nonproperty 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 Federal aid Other sources Operating transfers Retirement system credits Expenditures General government support Public safety Public health Transportation Economic assistance and opportunity Culture and recreation Home and community services Employee benefits Other uses Operating transfers Revenues and other sources over (under) expenditures Appropriated fund balance Net change in unbudgeted special revenue funds Fund balances, beginning of year Fund balances, end of year $ 341, 614 $ 4,450 1,000 1,650 4,463 6,000 8, 950 4,250 0 0 42, 000 0 414, 377 0 0 414,377 241, 360 13,802 55,100 43, 601 11, 300 19, 004 38,711 41,050 463, 928 I (49, 551) 49, 551 0 0 $ 0 $ 341, 594 $ 4, 685 11009 2, 568 4, 552 10,831 15, 714 8, 218 160 130 72,829 0 462f290 0 (1,378) 460t 912 230,747 13,134 55,000 40f681 11, 008 18,349 30,019 27,479 426, 417 0 34, 495 $ 0 0 114, 044 148,539 (20) 235 9 918 89 4,831 6, 764 3, 968 160 130 30,829 0 47, 913 0 (1, 378) 46,535 10, 613 668 100 2, 920 292 655 8, 692 13, 571 37,511 I 84, 046 Nolis & Beals Certified Public Accountants Governmental Fund Types Special Revenue Variance Modified favorable Budget Actual (unfavorable) $ 477,860 $ 477,860 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 113, 500 120, 056 61556 0 0 0 0 0 0 0 4,230 41230 0 0 0 69, 099 76, 172 7,073 0 0 0 660f459 678, 318 17, 859 0 0 0 0 0 0 660,459 678,318 17,859 0 0 0 62,000 62,000 0 0 0 0 521t309 503, 964 171,345 0 0 0 0 0 0 3,011 2,852 159 43, 150 34, 167 8, 983 629, 470 602, 983 26, 487 45, 000 45, 000 0 (14,011) 30,335 $ 44,346 14, 011 0 0 1, 147 0 189, 048 $ 0 $ 220,530 The accompanying notes are an integral part of these financial statements. -4- N olis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements Note A. Summary of significant accounting policies: The financial statements of the Town of Groton have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Town's accounting policies are described below. 1. Reporting entity The Town of Groton, which was established in 1817, is governed by the Town Law and other 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, recreation, public improvements, planning and zoning, and general administration. All governmental activities and functions performed for the Town of Groton 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 of Groton (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 general purpose 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- Nolxs & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): 2. Fund accounting The accounts of the Town are organized on the basis of funds or 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 comprise 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 general purpose 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. 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: Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): 2. Fund accounting (continued) b. Special revenue funds (continued) - Highway Funds - (Townwide and Parttown) 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. - Risk Retention - established for unemployment reserves held by the Town for reimbursement to the state for claims filed by former employees. - Special Grant Fund - used to account for Community Development Block Grants. C. Capital projects funds The capital projects fund is used to account for and report financial resources to be used for the acquisition, construction or renovation of major capital facilities, or equipment. Fiduciary fund type a. 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. -7- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): 2. Fund accounting (continued) Account groups Account groups are used to establish accounting control and accountability for general fixed assets and general long-term debt. The two account groups are not "funds". They are concerned only with the measurement of financial position, and not results of operations. a. General fixed assets account group These funds account for land, buildings, improvements other than buildings, and equipment utilized for general government purposes. Town. b. General long-term debt account group These funds account for all the long-term debt of the 3. Basis of accounting Governmental funds Governmental funds are accounted for on the modified accrual basis. Under this basis, revenues are recognized when received except for revenues which are susceptible to accrual (measurable and available to finance current operations) and revenues of a material amount that have not been received at the normal time of receipt. Such revenues are accrued when earned. In those instances where expenditures are the prime factor in determining eligibility for State and Federal grants, revenues are recognized when the expenditures are incurred. Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued) : 3. Basis of accounting (continued) Expenditures are generally recognized when liabilities are incurred. Exceptions to this general rule include: (a) prepaid expenses are not recognized; (b) accumulated unpaid vacation and sick pay are not accrued and the non-current portion of retirement expense is not recognized until billed and paid; (c) principal and interest on indebtedness is recognized when due; (d) pension costs are recognized as an expenditure when billed by the state. Fiduciary funds Fiduciary Funds, such as trust and agency fund transactions are accounted for on a modified accrual basis. Account groups General fixed assets are recorded at actual cost or estimated cost, with the exception of land and buildings, which are recorded at appraised value or, in the case of gifts and contributions, at the fair market value at the time received. No provision for depreciation is made. General long-term debt liabilities are recorded at the par value of the principal amount. No liability is recorded for interest payable to maturity. 4. 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. Uncollected real property taxes are subsequently enforced by the County of Tompkins in which the Town is located. An amount representing uncollected real property taxes transmitted to the County for enforcement is paid by the County to the Town no later than May 31. Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): 5. 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 taxpayer comments, no later than November 20 the Town Board adopts the budget. c. All modifications of the budget must be approved by the Town Board. 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 generally accepted accounting principles. 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 of Groton's fiscal year. -10- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): S. Budgets and budgetary accounting (continued) Budget basis of accounting (continued) Consequently, the budgets for this fund have been excluded from the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual. In addition, the Risk Retention Fund has been excluded from the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual, because there is no legally adopted annual budget. The following schedule reconciles the difference between the two statements. Total for funds included in budget comp- arison Funds not in- cluded in budget comp- arison Special grant Risk retention Total special revenue funds Fund Balance Fund Balance Beginning Expendi- End of Year Revenues tures of Year $ 145, 451 $ 678f318 $ 647, 983 $ 175f786 35, 457 131, 821 130f922 36f356 81 140 248 -0- 8, 388 $ 189,048 $ 810,387 $ 778, 905 $ 220,530 6. Property, plant and equipment - general Fixed assets purchased for general governmental purposes are recorded as expenditures in the governmental funds and are capitalized at cost in the general fixed asset account group. Contributed fixed assets are recorded at fair market value at the date received. -11- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued): 6. Property, plant and equipment - general (continued) 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 on general fixed assets construction in progress been capitalized. 7. Vacation and sick leave and compensatory absences: Town of Groton employees 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. The value of unused employee sick leave at year-end has been recorded in the General long -Term Debt Account Group. Payment of sick leave recorded in the General Long -Term Debt 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. In addition, 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 and 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 be taken as absences due to illness or other contingencies. -12- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note A. Summary of significant accounting policies (continued) : The liability for compensated absences is calculated at rates in effect as of the balance sheet date and is recorded in the governmental funds is as much as it will be funded from current financial resources, and the general long-term debt account group for amounts to be paid from future financial resources. Note B. Cash and investments: The Town of Groton's investment policies are governed by State of New York statutes. In addition, the Town of Groton 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. Deposits and investments at year-end were entirely collateralized by Federal Deposit Insurance or by collateral held by the Town of Groton's custodial bank in the Town of Groton's name. In the financial statement all deposits including certificates of deposit are carried at cost plus accrued interest. $452,114. Total adjusted bank balances as of December 31, 1997 were -13- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note C. Summary of changes in general fixed assets: Balance Balance 12/31/96 Additions Deletions 12/31/97 Land $ 563, 000 $ 0 $ 0 $ 563, 000 Buildings 730,059 0 0 730,059 Machinery & Equipment 1, 092, 047 6, 275 14, 556 1, 083, 766 $2f385,106 $ 6r275 $ 14f556 $2,376,825 Note D. Other receivables: Other receivables at December 31, 1997 consisted of the following, which are stated at net realizable value. The Town has deemed the amounts to be fully collectible. Fund Description Amount Special Grant Rehabilitation loans $ 126,961 Note E. Employees' retirement: Plan description The Town of Groton 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 Comptroller shall adopt and may amend rules and regulations for the administration and transaction of the business of the Systems and for the custody and control of their funds. The Systems 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. -14- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note E. Employees' retirement (continued): Funding policy The System 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 of Groton is required to contribute at an actuarial determined rate. The required contributions for the current year and two preceding years were: 1997 $1, 239 1996 1, 382 1995 628 The Town's contributions made to the System 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 of Groton elected to make the full payment on December 15, 1989. Historical trend information showing the progress in accumulating sufficient assets to pay benefits when due is presented in the Annual Financial Report of the System. Additional detailed information concerning the System may also be found in the Report. -15- Nolis & Beals Certified Public Accountants Town of Groton Notes to Financial Statements (Continued) Note F. Long-term debt: The Town of Groton has compensated absences outstanding as of December 31, 1997 in the amount of $23,688. Compensated absences represents the value of earned and unused portion of accumulated sick leave. Note G. Fund equity -reserves: The following reserves existed at December 31, 1997 for the following purposes: Fund Purpose Amount General Dog Control $ 4f 340 General Retirement system credits 7f321 Risk retention Unemployment reserve 8,388 Capital projects Highway equipment 58,185 $ 78,234 -16- Nolis & Beals Certified Public Accountants Jan E. Nolis, C.P.A. Rick O. Beals, C.P.A. INDEPENDENT AUDITORS' REPORT ON ADDITIONAL INFORMATION Supervisor and Town Board Town of Groton Groton, New York Our report on our audit of the general purpose financial statements of the Town of Groton for 1997 appears on page 1. That audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. Additional information included on pages 17 through 20 is this report is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. March 25, 1998 Owego, New York —17- 210 Front Street - Owego, New York 13827 • Telephone & Fax: (607) 687-4317 P.O. Box 589 - 823 NYS Route 13 - Cortland, New York 13045 - Telephone & Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants Town of Groton Combining Balance Sheet General Fund December 31, 1997 Assets Unrestricted cash Due from other governments Prepaid expenses Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Fund balances -reserved Encumbrances Excess dog control revenues Retirement system credits Total fund balances -reserved Fund balances -unreserved Appropriated - ensuing year's budget Unappropriated Total fund balances -unreserved Townwide Parttown Total $ 103, 300 $ 35f222 $ 138, 522 3, 600 0 3, 600 10,592 672 11f264 117, 492 35, 894 153, 386 4f12-7 551 4f678 160 9 169 4, 287 560 4, 847 0 0 0 4, 340 0 4, 340 7f321 0 7f321 11f661 0 11f661 20, 000 7, 000 27, 000 81, 544 28f334 109f878 101, 544 35, 334 136f878 113,205 35, 334 148f539 $ 117, 492 $ 35, 894 $ 153f386 See independent auditors' report on additional information. -18- Nolis & Beals Certified Public Accountants Town of Groton Combining Statement of Revenues, Expenditures and Changes in Fund Balances - General Fund For the Year Ended December 31, 1997 Townwide Modified Budget Actual Revenues and other sources Revenues Real property taxes $ 241,116 $ 241,096 Real property tax items 4, 450 4f685 Nonproperty tax items 0 0 Departmental income 1,350 2,011 Intergovernmental charges 4,088 4,088 Use of money and property 51000 8, 657 Licenses and permits 61500 11,366 Fines and forfeitures 4,250 8f218 Sale of property and compensation for loss 0 160 Miscellaneous local sources 0 130 State aid 42,000 72,829 308f754 353f240 Other sources Operating transfers 0 0 Retirement system credits 0 (1,378) 308f754 351,862 Expenditures General government support 236,489 230,602 Public safety 13,802 13f134 Public health 100 0 Transportation 43, 601 40,681 Economic assistance and opportunity 11,300 11,008 Culture and recreation 9, 075 8f575 Home and community services 2,188 1,051 Employee benefits 36f750 23f573 353, 305 328f624 Revenues and other sources over (under) expenditures (44f551) 23/238 Appropriated fund balance 44,551 0 Net (decrease) $ 0 23,238 Fund balance, beginning of year 89,967 Fund balance, end of year $` 113,205 Nolis & Beals Certified Public Accountants Parttown Total Modified Budget Actual Modified Budget Actual $ 100f498 $ 100f498 $ 341, 614 $ 341, 594 0 0 41 450 4, 685 1, 000 1, 009 11000 1, 009 300 557 1, 650 2, 568 375 464 41 463 4, 552 1, 000 2, 174 6, 000 10, 831 21 450 41 348 81 950 15, 714 0 0 41250 8,218 0 0 0 160 0 0 0 130 0 0 42,000 72, 829 105f623 109,050 414, 377 462f290 0 0 0 0 0 0 0 (1,378) 105, 623 109, 050 414, 377 460t 912 41871 145 241,360 230f747 0 0 13, 802 13, 134 55, 000 55,000 55, 100 55,000 0 0 43, 601 40, 681 0 0 11,300 11,008 9f929 9, 774 19, 004 18, 349 36f523 28f968 38, 711 30,019 4, 300 3, 906 41, 050 27, 479 110, 623 97f793 463, 928 426, 417 (5, 000) 11, 257 (49, 551) 34, 495 51000 0 49, 551 0 $ 0 11, 257 $ 0 34, 495 24,077 114,044 S 35,334 $ 148, 539 See independent auditors' report on additional information. -19- Nolis & Beals Certified Public Accountants Town of Groton Combining Balance Sheet Special Revenue Funds December 31, 1997 Assets Unrestricted cash Restricted cash Due from other governments Other receivables, net Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Deferred revenue Fund balances -reserved Encumbrances Unemployment insurance Total fund balances -reserved Fund balances -unreserved Appropriated - ensuing year's budget Unappropriated Total fund balances -unreserved Highway Highway Lighting Townwide Parttown District $ 100f832 $ 77, 008 $ 15, 624 0 0 0 0 0 0 0 0 0 100,832 77, 008 15, 624 12,397 209 397 4, 675 0 0 0 0 0 17, 072 209 397 0 0 0 0 0 0 0 0 0 20,000 17f500 0 63f760 59f299 15,227 83,760 76f799 15, 227 83,760 76f799 15, 227 $ 100, 832 $ 77, 008 $ 15, 624 olis & Beals Certified Public Accountants Special Risk Grant Fund Retention Total $ 36f356 $ 0 $ 229f820 0 8, 388 8, 388 0 0 0 126f961 0 126f961 163, 317 81 388 365, 169 0 0 13, 003 0 0 4, 675 126, 961 0 126, 961 126, 961 0 144f639 0 0 0 0 8, 388 8, 388 0 81388 8, 388 0 0 37, 500 36, 356 0 174f642 36f356 0 212, 142 36f356 8, 388 220f530 $ 163, 317 $ 8, 388 $ 365, 169 See independent auditors' report on additional information. -20- Nolis & Beals Certified Public Accountants Town of Groton Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Special Revenue Funds For the Year Ended December 31, 1997 Highway Townwide Highway Parttown Budget Actual Budget Actual Revenues and other sources Revenues Real property taxes $ 287, 410 $ 287, 410 $ 122, 450 $ 122, 450 Departmental income 0 0 0 0 Use of money and property 110,000 115,006 3,500 4,202 State aid 0 0 69,099 76, 172 Federal aid 0 0 0 0 Miscellanous local sources 0 0 0 0 Sale of property 0 4,230 0 0 397,410 406, 646 195,049 202,824 Other sources Operating transfers 0 0 0 0 397,410 406,646 195,049 202,824 Expenditures Public safety 0 0 0 0 Transportation 321,110 310, 498 194, 199 188,703 Home and community services 0 0 3,011 2,852 Employee benefits 32,300 25,748 10,850 8,419 353, 410 336,246 208,060 199, 974 Other uses Operating transfers 45,000 45,000 0 0 Revenues and other sources over (under) expenditures (1, 000) 25,400 (13, 011) 2,850 Appropriated fund balance 11000 0 13,011 0 Net increase $ 0 25, 400 $ 0 2,850 Fund balance, beginning of year 58,360 73, 949 Fund balance, end of year $ 83,760 $ 76,799 Nolis & Beals Certified Public Accountants Fire Protection Special Risk Lighting District District Subtotal Grant Retention Total Budget Actual Budget Actual Budget Actual Actual Actual Actual $ 6,000 $ 6,000 $ 62,000 $ 62,000 $ 477,860 $ 477,860 $ 0 $ 0 $ 477,860 0 0 0 0 0 0 4, 953 0 4, 953 0 848 0 0 113,500 120,056 2,033 248 122,337 0 0 0 0 69,099 76, 172 0 0 76, 172 0 0 0 0 0 0 124,835 0 124,835 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,230 0 0 4,230 6,000 6, 848 62,000 62,000 660, 459 678,318 131,821 248 810,387 0 0 0 0 0 0 0 0 0 6,000 6,848 62,000 62,000 660,459 678,318 131,821 248 810,387 0 0 62,000 62,000 62, 000 62,000 0 0 62,000 6, 000 4,763 0 0 521, 309 503, 964 0 0 503, 964 0 0 0 0 3,011 2,852 130,922 0 133,774 0 0 0 0 43, 150 34, 167 0 0 34, 167 6,000 4,763 62,000 62,000 629, 470 602,983 130,922 0 733,905 0 0 0 0 45,000 45,000 0 0 45,000 0 2,085 0 0 (14,011) 30,335 899 248 31,482 0 0 0 0 14,011 0 0 0 0 $ 0 2,085 $ 0 0 $ 0 30, 335 899 248 31, 482 13,142 0 145,451 35, 457 8, 140 189, 048 $ 15,227 $ 0 $ 175,786 $ 36,356 $ 8,388 $ 220,530 See independent auditors' report on additional information. -21- Nolis & Beals Certified Public Accountants Jan E. Nolis, C.P.A. Rick O. Beals, C.P.A. INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Supervisor and Town Board Town of Groton Groton, New York We have audited the general purpose financial statements of the Town of Groton, for the year ended December 31, 1997, and have issued our report thereon dated March 25, 1998. We have conducted our audit in accordance with generally accepted auditing standards and "Government Auditing Standards", issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Town of Groton is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. -22- 210 Front Street e Owego, New York 13827 • Telephone & Fax: (607) 687-4317 P.O. Box 589 • 823 NYS Route 13 • Cortland, New York 13045 • Telephone & Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants In planning and performing our audit of the general purpose financial statements of the Town of Groton, for the year ended December 31, 1997, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving control structure and its operation that we have reported to the management of the Town of Groton, in a separate letter dated March 25, 1998. This report is intended for the information of the Town's management and Town Board and applicable federal, state, local and other funding sources. This restriction is not intended to limit the distribution of this report, which upon acceptance by the Town of Groton's Town Board is a matter of public record. March 25, 1998 Owego, New York -23- I"-) t-t�z t Nolis & Beals Certified Public Accountants ]an E. Nolis, C.P.A. Rick O. Beals, C.P.A. INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Supervisor and Town Board Town of Groton Groton, New York We have audited the general purpose financial statements of the Town of Groton, as of and for the year ended December 31, 1997, and have issued our report thereon dated March 25, 1998. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Town of Groton is the responsibility of the Town's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Town's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our test disclose no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended for the information of the Town's management and Town Board and applicable federal, state, local and other funding sources. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the Town of Groton's Town Board is a matter of public record. March 25, 1998 Owego, New York -24- 7---) vtzo 4- 12C4-� 210 Front Street • Owego, New York 13827 - Telephone & Fax: (607) 687-4317 P.O. Box 589 • 823 NYS Route 13 • Cortland, New York 13045 • Telephone & Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants Jan E. Nolis, C.P.A. Rick O. I3eals, C.P.A. Supervisor and Town Board Town of Groton Groton, New York We have audited the books and records of the Town of Groton's Justice Court for the period beginning January 1, 1997 and ended December 31, 1997. Our audit was made in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States (1994 edition) which set the audit standards for performance audits and, accordingly, we included such procedures as we considered necessary in the circumstances. Town Law Section 31 states that the Town Justice is responsible for recording and reporting the Court's activities. The Uniform Justice Court Act Section 2019-A states that the books and records of the Court are the Town's property and that the Town is responsible for causing them to be audited. Our audit was made for the purpose of determining whether the Town of Groton's Justice Court was properly collecting and recording bail, fines, and other charges, as well as reporting and remitting funds to the State in an accurate and timely manner. In planning and performing our audit of the books and records of the Town of Groton's Justice Court for the year ended December 31, 1997, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the Town of Groton's Justice Court's books and records, and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 210 Front Street • Owego, New York 13827 - Telephone & Fax: (607) 687-4317 P.O. Box 589 • 823 NYS Route 13 • Cortland, New York 13045 • Telephone & Fax: (607) 758-9210 Nolis & Beals Certified Public Accountants The results of our tests indicate that for the transactions tested, the Town of Groton's Justice Court substantially complied, in all material respects, with the terms and conditions of the requirements described above. This report is intended for the information of the Town Board, management and New York State. However, this report is a matter of public record and its distribution is not limited. %,-11 va� o, -- March 25, 1998 Owego, New York