HomeMy WebLinkAbout1998 Town AuditI
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KIRBY • BEALS • MAIER
KIRBY • BEALS • MAIER
Certified Public Accountants, PLLC CPAs, PLLC
TOWN OF GROTON
FIN.A-'vT%"r-:IAL S" ATEMIC"INTS
DECEMBER 31, 1998
TOWN OF GROTON
Financial Statements
December 31, 1998
TABLE OF CONTENTS
Independent Auditors' Report.......................................................................................................... l
Combined Balance Sheet - All Fund Types and Account Groups...................................................2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types.........................................................................3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget & Actual - General and Special Revenue Funds..................................4
Notes to the Financial Statements....................................................................................................5
Independent Auditors' Report on Additional Information............................................................14
Combining Balance Sheet - General Fund.....................................................................................15
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - General Fund...................................................................................................16
Combining Balance Sheet - Special Revenue Funds.....................................................................17
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Special Revenue Funds...................................................................................18
Report on Compliance and on Internal Control over Financial Reporting Based
on an Audit of Financial Statements Performed in Accordance with
GovernmentAuditing Standards....................................................................................................19
KIRBY • BEALS • MAIER
Certified Public Accountants, PLLC 221 W. Church St.
Elmira, NY 14901-2917
607-733-5548
Fax 607-737-1996
kbmcpa@exotrope.net
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, 1998, 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,
1998, and the results of its operations for the year then ended in conformity with generally
accepted accounting principles.
r-
KIRBYBY • BEALS • MAIER
Certified Public Accountants, PLLC
June 17,1999
k,
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
TOWN OF GROTON
Combined Balance Sheet
All Fund Tvoes and Account GrouDa
December 31. 1998
Fiduciary
Governmental Fund Types Fund Type Account Groups
Special Capital Trust and General Long -Term
General Revenue Projects Agency Fixed Assets Debt
$ 202,014 $ 336,597 $ $ 1,309 $ $
8,618 64,323
26,989
6,338
126,961
2,413,754
30,644
$ 235,341 $ 472,176 $ 64,323 $ 1,309 $ 2,413,754 $ 30,644
$ 5,175 $ 33,005
503 5,122
$ 30,644
$ 1,309
126,961
5,678 165,088 1,309 30,644
2,413,754
3,932
20,859
64,323
8,618
8,141
6,338
18,411
29,477
64,323 2,413,754
35,000
37,500
176,252
240,111
211,252
277,611
229,663
307,088
64,323 2,413,754
$ 235,341 $
472,176 $
64,323 $ 1,309 $ 2,413,754 $ 30,644
The accompanying notes are an integral part of these financial statements.
-2-
TOWN OF GROTON
Combined Statement of Revenues. Extienditures and Chanaes in
Fund Balances - All Governmental Fund Types
For The Year Ended December 31.1998,
Governmental Fund Types
Special Capital
General Revenue Projects
Revenues and other sources
24,176
375726
Revenues
Employee benefits
34,181
Real property taxes
$ 360,880 $
511,369
Real property tax items
4,753
27,198
Non -property tax items
987
Departmental income
3,004
17,824
Intergovernmental charges
5,093
Revenues and other sources over
Use of money and property
12,839
105,585 $
Licenses and permits
14,974
86,558
Fines and forfeitures
8,824
1485,539
Sale of property and
585185
Fund balances, end of year
compensation for loss
113
6,602
Miscellaneous local sources
2,401
2,262
State aid
5907
791856
Federal aid
42,020
473,675
765,518
Other sources
Operating transfers
Retirement system credits
(983)
472,692
765,518
Expenditures
General government support
202,705
Public safety
12,538
63,000
Public health
565000
Transportation
35,682
513,328
Economic assistance and
opportunity
6,667
Culture and recreation
191619
t
943
943
32,393
33,336
27,198
Home and community services
24,176
375726
Employee benefits
34,181
32,513
3919568
646,567
27,198
Other uses
Operating transfers
325393
Revenues and other sources over
(under) expenditures
81,124
86,558
65138
Fund balances, beginning of year
1485,539
2209530
585185
Fund balances, end of year
$ 229,663 $
3071088 $
645323
The accompanying notes are
an integral part of these financial statements.
-3-
The accompanying notes are an integral part of these financial statements.
-4-
TOWN OF GROTON
Combined
Statement of Revenues_ Expenditures and Chances in
Fund Balances
- Bucket & Actual - General and Special Revenue Funds
For The Year End December 31, 1998,
Governmental Fund Types
Governmental
Fund Types
General Fund
Special Revenue
Variance
Variance
Modified
favorable
Modified
favorable
Budget
Actual
(unfavorable)
Budget
Actual
(unfavorable)
Revenues and other sources
Revenues
Real property taxes
$ 360,880
$ 360,880
$
511,369 $
511,369
Real property tax items
4,500
4,753 $
253
Non -property tax items
1,000
987
(13)
Departmental income
1,650
3,004
1,354
Intergovernmental charges
5,093
5,093
Use of money and property
6,500
12,839
6,339
93,974
101,868 $
7,894
Licenses and permits
9,450
14,974
5,524
Fines and forfeitures
4,500
8,824
4,324
Sale of property and
compensation for loss
113
113
6,602
6,602
Miscellaneous local sources
2,401
2,401
2,262
2,262
State aid
42,000
59,807
17,807
78,233
79,856
1,623
Federal aid
435,573
473,675
38,102
690,178
701,957
11,779
Other sources
Operating transfers
Retirement system credits
(983)
(983)
435,573
472,692
37,119
690,178
701,957
11,779
Expenditures
General government support
234,305
202,705
31,600
Public safety
13,780
12,538
1,242
63,000
63,000
Public health
56,100
56,000
100
Transportation
39,000
35,682
3,318
570,891
513,328
57,563
Economic assistance and
opportunity
6,900
6,667
233
Culture and recreation
20,664
19,619
1,045
Home and community services
38,338
24,176
14,162
Employee benefits
53,486
34,181
19,305
61,394
32,513
28,881
462,573
391,568
71,005
695,285
608,841
86,444
Other uses
Operating transfers
32,393
32,393
Revenues and other sources over
(under) expenditures
(27,000)
81,124 $
108,124
(37,500)
60,723 $
98,223
Appropriated fund balance
27,000
37,500
Net change in unbudgeted special
revenue funds
25,835
Fund balances, beginning of year
148,539
220,530
Fund balances, end of year
$
$ 229,663
$
0 $
307,088
The accompanying notes are an integral part of these financial statements.
-4-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
1. Summary of significant accountinv, 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.
A. Reportin4 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.
B. Fund accountin,
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:
-5-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
1. Summary of significant accounting policies (continued)
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:
- 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.
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
1. Summary of significant accountinv, policies (continued)
Fiduciary fund type
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 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.
b. General long-term debt account group
These funds account for all the long-term debt of the Town.
C. 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.
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.
I�
TOWN OF GROTON
Notes to Financial Statements
December 31. 1998
1. Summary of significant accountinv policies (continued)
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.
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.
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.
E. Budgets and budi4etary 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.
-8-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
1. Summary of significant accountinv, policies (continued)
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.
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.
Fund Balance Fund Balance
Beginning End
of Year Revenues Expenditures of Year
Total for funds included
in budget comparison $ 17510786 $ 7015957 $ 641,234 $ 236,509
Funds not included in
budget comparison
Special grant 36,356 635331 37,727 61,960
Risk retention 89388 230 0 85618
Total special revenue funds $ 2205530 $ 7655518 $ 6785961 $ 307,087
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
1. Summary of sivnificant accountin4 policies (continued)
F. Property, plant and equipment - veneral
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.
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.
H. 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.
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.
-10-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
2. 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.
Total adjusted bank balances as of December 31, 1998 were $612,409.
3. Summary of changes in general fixed assets
Balance Balance
12/31/97 Additions Deletions 12/31/98
Land $ 56300 $ 0 $ 0 $ 56300
Buildings 73011059 0 0 730,059
Machinery & Equipment 150831766 51,261 145332 1,120,695
$ 250376,825 $ 511261 $ 14,332 $ 2,413,754
4. Other receivables
Other receivables at December 31, 1998 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
-11-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
5. 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.
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:
1998 $ 784
1997 $ 15239
1996 $ 111382
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.
-12-
TOWN OF GROTON
Notes to Financial Statements
December 31, 1998
6. Lonv,-term debt
The Town of Groton has compensated absences outstanding as of December 31, 1998 in the
amount of $30,644. Compensated absences represents the value of earned and unused portion of
accumulated sick leave.
7. Fund equity -reserves:
The following reserves existed at December 31, 1998 for the following purposes:
Fund
Purpose
Amount
General
Encumbrance
Townwide
$ 3,932
General
Dog Control
85141
General
Retirement system credits
6,338
Highway
Encumbrance
Townwide
19,359
Highway
Encumbrance
Parttown
1,500
Risk retention
Unemployment reserve
8,618
Capital projects
Highway equipment
645323
$ 112,211
-13-
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 1998
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 15 through 18 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.
lit tf 4
KIRBY • BEALS • MAIER
Certified Public Accountants, PLLC
June 17, 1999
-14-
TOWN OF GROTON
Combining Balance Sheet
General Fund
December 31,1998
Townwide
Assets
Unrestricted cash $ 147,999 $
Due from other governments 265989
Prepaid expenses 6,338
$ 1815326 $
Liabilities and fund equity
Liabilities
Accounts payable
Accrued liabilities
Total liabilities
Fund balances -reserved
Reserve for encumbrances
Reserve for excess dog control revenues
Reserve for retirement system credits
Total fund balances -reserved
Fund balances -unreserved
Appropriated for ensuing year's budget
Unappropriated
Total fund balances -unreserved
Total Fund balances
$ 4,702 $
451
5,153
3,932
8,141
6,338
18,411
25,000
132,762
157,762
176,173
$ 1811326 $
Parttown
54,015 $
54,015 $
473 $
52
525
10,000
43,490
53,490
53,490
54,015 $
See independent auditors' report on additional information.
- 15 -
Total
202,014
26,989
6,338
235,341
5,175
503
5,678
3,932
8,141
6,338
18,411
35,000
176,252
211,252
229,663
235,341
See independent auditors' report on additional information.
-16-
TOWN OF GROTON
Combinine Statement of Revenues. Expenditures and Changes in
.
Fund Balances - General Fund
For The Year Ended December
31.1998
Townwide
Parttown
Total
Modified Budget
Actual
Modified Budget Actual
Modified Budget
Actual
Revenues and other sources
Revenues
Real property taxes
$ 260,191 $
260,191
$ 100,689 $
100,689
$ 360,880 $
360,880
Real property tax items
4,500
4,753
4,500
4,753
Non -property tax items
1,000
987
1,000
987
Departmental income
1,350
2,117
300
887
1,650
3,004
Intergovernmental charges
4,422
4,422
671
671
5,093
5,093
Use of money and property
5,500
9,698
1,000
3,141
6,500
12,839
Licenses and permits
7,000
11,711
2,450
3,263
9,450
14,974
Fines and forfeitures
4,500
8,824
4,500
8,824
Sale of property and
compensation for loss
113
113
Miscellaneous local sources
2,366
35
2,401
State aid
42,000
59,807
42,000
59,807
329,463
364,002
106,110
109,673
435,573
473,675
Other sources
Operating transfers
Retirement system credits
(983)
(983)
329,463
363,019
106,110
109,673
435,573
472,692
Expenditures
General government support
229,475
202,560
4,830
145
234,305
202,705
Public safety
13,780
12,538
13,780
12,538
Public health
100
56,000
56,000
56,100
56,000
Transportation
39,000
35,682
39,000
35,682
Economic assistance and
opportunity
6,900
6,667
6,900
6,667
Culture and recreation
10,322
9,472
10,342
10,147
20,664
19,619
Home and community services
1,700
1,401
36,638
22,775
38,338
24,176
Employee benefits
48,186
31,731
5,300
2,450
53,486
34,181
349,463
300,051
113,110
91,517
462,573
391,568
Revenues and other sources over
(under) expenditures
(20,000)
62,968
(7,000)
18,156
(27,000)
81,124
Appropriated fund balance
20,000
7,000
27,000
Net (decrease)
$
62,968
$
18,156
$
81,124
Fund balance, beginning of year
113,205
35,334
148,539
Fund balance, end of year
$
176,173
$
53,490
$
229,663
See independent auditors' report on additional information.
-16-
See independent auditor's report on additional information.
-17-
TOWN OF GROTON
Combinine
Balance Sheet
Special
Revenue Funds
December 31. 1998
Highway
Highway
Lighting
Special
Risk
Townwide
Parttown
District
Grant Fund
Retention
Total
Assets
Unrestricted cash $
149,356 $
107,633 $
17,647
$ 61,961 $
$
336,597
Restricted cash
8,618
8,618
Due from other governments
Other receivables, net
126,961
126,961
$
149,356 $
1079633 $
171,647
$ 188,922 $
8,618 $
472,176
Liabilities and fund equity
Liabilities
Accounts payable $
15,925 $
1603 $
397
$
33,005
Accrued liabilities
5,122
5,122
Deferred revenue
$ 126,961
126,961
211047
165683
397
1261961
165,088
Fund balances -reserved
Reserves for encumbrances
19,359
1,500
20,859
Reserves for unemployment insurance
$
8,618
8,618
Total fund balances -reserved
19,359
1,500
8,618
29,477
Fund balances -unreserved
Appropriated for ensuing year's budget
20,000
17,500
375500
Unappropriated
88,950
717950
17,250
61,961
2401111
Total fund balances -unreserved
1085950
895450
17,250
61,961
2773611
1285309
905950
171250
61,961
85618
307,088
$
149,356 $
1075633 $
175647
$ 188,922 $
8,618 $
472,176
See independent auditor's report on additional information.
-17-
See independent auditors' report on additional information.
-18-
ombining Statement
TOWN
of Revenues-Expenditures
Fund Balances -
For The Year Ended
OF GROTON
Special Revenue
December
and Changes
Funds
31.1998
in
Fire Protection
Special
Risk
Highway Townwide
Highway Parttown
Lighting District
District
Subtotal
Grant
Retention
Total
Budget
Actual
Budget
Actual
Budget
Actual
Budget
Actual
Budget
Actual
Actual
Actual
Actual
Revenues and other sources
Revenues
Real property taxes
$ 319,869 $
319,869 $
122,500 $
122,500 $
6,000 $
6,000 $
63,000 $
63,000 $
511,369 $
511,369
$
511,369
Departmental income
$
17,824
17,824
Use of money and property
90,474
95,107
3,500
5,970
791
93,974
101,868
3,487
$ 230
105,585
State aid
78,233
79,856
78,233
79,856
79,856
Federal aid
42,020
42,020
Miscellaneous local sources
2,262
2,262
2,262
Sale of property
6,602
6,602
6,602
6,602
6,602
416,945
423,840
204,233
208,326
6,000
6,791
63,000
63,000
690,178
701,957
63,331
230
765,518
Other sources
Operating transfers
416,945
423,840
204,233
208,326
6,000
6,791
63,000
63,000
690,178
701,957
63,331
230
765,518
Expenditures
Public safety
63,000
63,000
63,000
63,000
63,000
Transportation
360,584
323,604
204,307
184,956
6,000
4,768
570,891
513,328
513,328
Home and community services
37,726
37,726
Employee benefits
43,968
23,294
17,426
9,219
61,394
32,513
32,513
404,552
346,898
221,733
194,175
6,000
4,768
63,000
63,000
695,285
608,841
37,726
646,567
Other uses
Operating transfers
32,393
32,393
32,393
32,393
32,393
Revenues and other sources over
(under) expenditures
(20,000)
44,549
(17,500)
14,151
2,023
(37,500)
60,723
25,605
230
86,558
Appropriated fund balance
20,000
17,500
37,500
Net increase
$
44,549 $
14,151 $
2,023 $
$
60,723
25,605
230
86,558
Fund balance, beginning of year
83,760
76,799
15,227
175,786
36,356
8,388
220,530
Fund balance, end of year
$
128,309
$
90,950
$
17,250
$
$
236,509 $
61,961
$ 8,618 $
307,088 _
See independent auditors' report on additional information.
-18-
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
I
WITH GOVERNMENT AUDITING STANDARDS
To the Supervisor and Town Board
Town of Groton
Groton, New York
We have audited the general purpose financial statements of the Town of Groton, New York
("Town"), as of and for the year ended December 31, 1998, and have issued our report thereon
dated June 17, 1999. We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing
■ Standards, issued by the Comptroller General of the United States.
A. Compliance
As part of obtaining reasonable assurance about whether the Town's general purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grants, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance that are required to be reported under Government Auditing Standards.
However, we noted certain immaterial instances of noncompliance that we have reported to
management of the Town in a separate letter dated June 17, 1999.
B. Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting would
not necessarily disclose weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low
level the risk that misstatements 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 over financial reporting and its operation that we consider to be
material weaknesses. However, we noted other matters involving the internal control over
financial reporting that we have reported to management of the Town in a separated letter dated
June 17, 1999.
-19-
To the Supervisor and Town Board
Town of Groton
Page 2
This report is intended solely for the information and use of the Town's management, others
within the organization, and the Town Board and is not intended to be and should not be used by
anyone other than these specified parties.
KIRBY • BEALS • MAIER
Certified Public Accountants, PLLC
June 17, 1999
-20-
KIRBY • BEALS @ MAIER
Certified Public Accountants, PLLC
Supervisor and Town Board
Town of Groton
Groton, New York
con
221 W. Church St.
Elmira, NY 14901-2917
607-733-5548
Fax 607-737-1996
kbmcpa@exotrope.net
We have audited the financial statements of Town of Groton (the Town) for the year ended
December 31, 1998 and have issued our report thereon dated June 17, 1999. As part of our
examination, we made a study and evaluation of the Town's system of internal accounting
control to the extent we considered necessary to evaluate the system as required by generally
accepted auditing standards. The purpose of our study and evaluation was to determine the
nature, timing and extent of the auditing procedures necessary for expressing an opinion on the
Town's financial statements. Our study and evaluation was more limit,:,d than would be
necessary to express ari opinion on the system of internal accounting control taken as a whole.
'The management of the Town is responsible for establishing and maintaining a system of
internal accounting control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of control procedures.
The objectives of a system are to provide management with a 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 generals v a(: cepted
accounting principles.
Because of inherent limitations in any system of internal accounting control, errors or
irregularities may occur and not be detected. Also, projection of any evaluation of the system to
future periods is subject to the risk that procedures may become inadequate becaus=e of changes
in conditions, or that the degree of compliance with the procedures may deteriorate.
Our study and evaluation made for the limited purpose described above would not necessaril
disclose all material weaknesses in the system. Accordingly, we do not express an opinion on
the system of internal accounting control of the Town taken as a whole. However, we noted
certain matters involving the internal control structure and its operation that we codsader to be
reportable conditions under standards established by the American Institute of Certified Public
Accountants. Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control structure that, in our
judgment, could adversely affect the Town's ability to record, process, summarize, and report
financial data consistent with the assertions of management in the general purpose financial
statements.
12-13-1999 d:27RM FROM KIRBY.6EALS.MAIER 607 7371996
Supervisor and Town Board
Town of Groton
Page Two
�. Comments from the Current Year's examination
A. Year 2000 Compliance issue
On January 1, 2000, information technology experts believe that many application
systems will fail as a result of erroneous calculations and data integrity problems. The
situation, commonly known as the year .1.000 issue, will occur because many computers
cannot process date information beyond December 31, 1999. That is because many
application software products were originally designed to accommodate only a two digit
date position to represent the year.
Recommendation:
We recommend that you modify all applications, particularly mission -critical
applications, by December 31, 1999, to allow for complete testing before January 1,
2000. if the Town is not year 2000 compliant by January 1, 2000, it may experience
costly and significant application program failures that could prevent it from performing
its normal processing activities. Depending on the extent of system failures,
noncompliance could also affect the audit of the December 31, 2000 financial statements
and, in extreme situations, could have catastrophic financial consequences for the Town.
These conditions were considered in determining the nature, timing and extent of the audit tests
to be applied in our examination of the December 31, 1998 financial statements, and this report
does not effect our report dated June 17, 1999 on these statements.
This report is is for use by the Town and its Town Board and should not be used for any
other purpose.
Kirby 9 Beals • .Maier
Certified Public Accountants, PLLC
June 17, 1999