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2007 AUD (State) All Numbers in This Report Have Been Rounded To The Nearest Dollar SUp('31V;SOr Office MAY 062008 Received ANNUAL FINANCIAL REPORT UPDATE DOCUMENT For The TOWN of Wappinger County of Dutchess For the Fiscal Year Ended 12/31/2007 ************************************************************************************************************************************* AUTHORIZATION ARTICLE 3, SECTION 30 of the GENERAL MUNICPAL LAW: 1. ***Every Municipal Corporation *** shall annually make a report of its financial condition to the Comptroller. Such report shall be made by the Chief Fiscal Officer of such Municipal Corporation *** 5. All reports shall be certified by the officer making the same and shall be filed with the Comptroller within sixty days after the close of the fiscal year of such Municipal Corporation *** It shall be the duty of the incumbent officer at'the time such reports are required to be filed with the Comptroller to file such report *** State of NEW YORK Office of The State Comptroller Division of Local Government Services and Economic Development Albany, New York 12236 Page 1 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Balance Sheet Accounts Receivable - 517,249 A201 354,651 800 A210 800 97,225 A380 56,318 401,008 A410 272,670 278,890 A391 771,634 1,750 A440 1,750 8,929 A480 16,334 Assets Cash In Time Deposits Petty Cash State & Federal, Other Due From Other Funds Due From Other Governments Prepaid Expenses Page 1 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Balance Sheet Liabilities And Fund Equity Accounts Payable 255,778 A600 695,621 4,379 A601 4,379 Accrued Liabilities Retained Percentages 983 A605 983 Due To Other Funds 470,984 A630 522,645 Deferred Revenues 15,628 A691 2,883 Reserve For Encumbrances A821 Unreserved Fund Balance Appropriated 70,000 A910 120,000 Unreserved Fund Balance Unappropriated 488,099 A911 127,646 Page 2 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation Detail Revenues And Other Sources Real Property Taxes 1,336,167 A1001 399 A1081 100,378 A1090 3,830 A1232 7,833 A 1255 3,620 A 1603 21,391 A2001 24,273 A2089 29,350 A2130 46,031 A2401 131,767 A2410 110 A2530 6,066 A2544 A2590 148,435 A2610 950 A2611 101 A2665 2,198 A2680 A2701 1,000 A2705 7,379 A2770 273,229 A3001 1,491,909 A3005 8,046 A3040 1,232 A3089 A3897 A3960 A4960 1,509,384 Other Payments In Lieu of Taxes Interest & Penalties On Real Prop Taxes 408 122,365 Tax Collector Fees Clerk Fees Vital Statistics Fees Park And Recreational Charges Other Culture & Recreation Income Refuse & Garbage Charges 3,310 8,265 3,745 26,930 7,490 29,096 Interest And Earnings Rental of Real Property 47,423 181,053 Games of Chance Dog Licenses Permits, Other 30 4,041 200 Fines And Forfeited Bail Fines & Pen-Dog Cases 116,490 450 Sales of Equipment Insurance Recoveries 6,680 Refunds of Prior Year's Expenditures Gifts And Donations Unclassified (specify) 5,761 2,000 52 St Aid, Revenue Sharing St Aid, Mortgage Tax St Aid, Real Property Tax Administration 8t Aid - Other (specify) St Aid, Culture & Rec-Capital Proj 8t Aid Emergency Disaster Assistance 394,635 1,035,332 8,034 422 875 2,784 Fed Aid, Emergency Disaster Assistance 8,691 Interfund Transfers 126,036 A5031 Page 3 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation Detail Expenditures And Other Uses Legislative Board, Pers Serv 37,860 A 10101 37,881 Legislative Board, Contr Expend 904 A10104 5,077 Municipal Court, Pers Serv 215,626 A 11101 208,270 Municipal Court, Equip & Cap Outlay 3,264 A 11102 Municipal Court, Contr Expend 56,330 A11104 68,651 Supervisor,pers Serv 124,856 A12201 126,284 Supervisor,contr Expend 2,725 A 12204 9,550 Comptroller,pers Serv 125,171 A 13151 127,037 Comptroller, Equip & Cap Outlay A13152 1,123 Comptroller, Contr Expend 6,707 A13154 37,418 Auditor, Contr Expend 47,088 A13204 46,325 Tax Collection,pers Serv 80,363 A13301 80,848 Tax Collection,equip & Cap Outlay A 13302 2,243 Tax Collection,contr Expend 3,442 A 13304 11,045 Assessment, Pers Serv 74,405 A13551 132,632 Assessment, Equip & Cap Outlay A13552 1,123 Assessment, Contr Expend 3,690 A 13554 8,537 Fiscal Agents Fees, Contr Expend -394 A 13804 Clerk,pers Serv 122,174 A14101 104,394 Clerk,equip & Cap Outlay 2,290 A14102 1,177 Clerk,contr Expend 14,079 A14104 29,523 Law, Contr Expend 131,537 A14204 112,431 Personnel, Contr Expend 15,075 A14304 Engineer, Contr Expend 32,982 A14404 25,831 Elections, Contr Expend -100 A14504 Buildings, Pers Serv 615 A16201 Buildings, Equip & Cap Outlay 12,390 A 16202 Buildings, Contr Expend 243,906 A 16204 220,725 Central Storeroom, Contr Expend 6,085 A 16604 3,842 Page 4 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation >- Detail Expenditures And Other Uses Central Print & Mail,contr Expend 32,514 A 16704 21,524 Central Data Process, Contr Expend 39,753 A 16804 49,171 Unallocated Insurance, Contr Expend 149,710 A19104 156,361 Municipal Assn Dues, Contr Expend 1,500 A 19204 Judgements And Claims, Contr Expend 19,804 A19304 11 Pur of Land/right of Way, Contr Expend 170 A 19404 Taxes & Assess On Munic Prop, Contr Expend 42,283 A 19504 7,400 Other Gen Govt Support, Contr Expend 18,957 A 19894 Traffic Control, Contr Expen 568 A33104 1,959 Control of Animals, Pers Serv Control of Animals, Contr Expend 22,441 5,935 A35101 A35104 23,113 5,510 Registrar of Vital Statistics, Pers Serv 2,870 A40201 3,860 Street Admin, Pers Serv 99,504 A50101 102,411 Street Admin, Equip & Cap Outlay 700 A50102 Street Admin, Contr Expend 1,703 A50104 878 Garage, Contr Expend 85,387 A51324 100,488 Veterans Service, Contr Expend 600 A65104 600 Other Eco & Dev, Contr Expend 732 A69894 805 Recreation Admini, Pers Serv Recreation Admini, Contr Expend 58,196 1,027 A70201 A70204 58,923 4,631 Parks, Pers Serv Parks, Equip & Cap Outlay 182,756 1 ,487 A71101 A71102 187,666 Page 5 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Results of Operation .. Detail Expenditures And Other Uses Parks, Contr Expend 87,166 A71104 106,728 Playgr & Rec Centers, Pers Serv 21,269 A71401 18,584 Playgr & Rec Centers, Contr Expend 16,446 A71404 24,616 Joint Rec Proj, Contr Expend 17,100 A71454 13,500 Celebrations, Contr Expend 16,702 A75504 19,606 Programs For Aging, Contr Expend 33,909 A761 04 39,970 Adult Recreation, Pers Serv 67,603 A76201 55,945 Adult Recreation, Equip & Cap Outlay A76202 778 Adult Recreation, Contr Expend 8,394 A76204 15,484 Planning, Contr Expend A80204 183 Refuse & Garbage, Pers Serv Refuse & Garbage, Contr Expend 45,193 174,094 33,794 178,930 A81601 A81604 State Retirement System Social Security, Employer Cont Worker's Compensation, Empl Bnfts Life Insurance, Empl Bnfts Unemployment Insurance, Empl Bnfts Disability Insurance, Empl Bnfts Hospital & Medical (dental) Ins, Empl Bnft Other Employee Benefits (spec) 131,393 97,814 13,033 3,353 13,508 2,619 260,601 5,850 A90108 A90308 A90408 A90458 A90508 A90558 A90608 A90898 107,963 100,419 15,523 3,454 11,380 2,657 250,944 Debt Principal, Serial Bonds Debt Principal, Bond Anticipation Notes A97106 A97306 204,603 194,214 197,862 223,386 Debt Interest, Serial Bonds Debt Interest, Bond Anticipation Notes 158,248 45,718 A97107 A97307 150,374 45,541 Page 6 OSC Municipality Code 130386800000 (A) GENERAL Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year Prior Period Adj-Increase To Fund Equity Prior Period Adj - Decrease In Fund Equity Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity-End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 7 509,275 A8021 558,099 50,024 A8012 A8015 113,931 559,299 A8022 444,168 3,771,728 3,525,946 3,772,928 3,722,468 558,099 AS029 247,646 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Budget Summary - Estimated Revenues And Other Sources Est Rev - Real Property Taxes 1,509,351 A 1 049N 1,656,236 Est Rev - Real Property Tax Items 70,500 A 1 099N 70,500 Est Rev - Departmental Income 102,500 A 1299N 102,500 Est Rev - Use of Money And Property 188,000 A2499N 228,000 Est Rev - Licenses And Permits 4,600 A2599N 6,500 Est Rev - Fines And Forfeitures 137,500 A2649N 145,250 Est Rev - State Aid 1,600,000 A3099N 1,428,000 Appropriated Fund Balance 66,100 A599N 120,000 Page 8 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (A) GENERAL Budget Summary Appropriations And Other Uses App - General Government Support App - Public Safety App - Health App - Transportation App - Economic Assistance And Opportunity App - Culture And Recreation App - Home And Community Services App - Employee Benefits App - Debt Service 1,523,337 31,141 2,500 199,742 1,350 607,139 202,758 517,070 593,514 ... A 1999N A3999N A4999N A5999N A6999N A7999N A8999N A9199N A9899N 1,556,799 31,778 2,750 204,225 1,350 608,554 214,931 536,961 599,638 Page 9 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Balance Sheet Assets Cash In Time Deposits 262,388 B201 186,353 99,094 B380 93,523 Accounts Receivable Due From Other Funds 320,700 B391 372,021 402,720 B440 424,015 Due From Other Governments Prepaid Expenses 1 ,138 B480 8,176 Page 10 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Balance Sheet .~- 107,202 B600 78,279 4,227 B601 4,227 B626 300,000 241,141 B630 271,818 Liabilities And Fund Equity Accounts Payable Accrued Liabilities Bond Anticipation Notes Payable Due To Other Funds Miscellaneous Reserve (specify) Additional Description inspection fee & escrow 402,900 B889 402,900 Unreserved Fund Balance Appropriated 160,034 B910 133,914 Unreserved Fund Balance Unappropriated 170,536 B911 -107,050 Page 11 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Results of Operation Detail Revenues And Other Sources Sales Tax (from County) Franchises 1,199,625 B1120 270,004 B1170 B2001 12,600 B2070 33,318 B2089 11,195 B2110 32,741 B2115 16,919 B2401 292,090 B2590 252 B2665 15,385 B2680 B2701 6,503 B3820 983,547 299,753 Park And Recreational Charges Contributions, Private Agencies-Youth Other Culture & Recreation Income Zoning Fees Planning Board Fees 30,550 21,890 17,908 40,338 Interest And Earnings 10,211 Permits, Other 264,657 Sales of Equipment Insurance Recoveries Refunds of Prior Year's Expenditures 164,050 St Aid, Youth Programs 8,517 Interfund Transfers 2,308 B5031 Page 12 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (8) GENERAL TOWN-OUTSIDE VG Results of Operation ... Detail Expenditures And Other Uses Law, Contr Expend 215,000 814204 253,372 Engineer, Contr Expend 145,351 814404 132,948 Unallocated Insurance, Contr Expend 10,123 819104 8,658 Judgements And Claims, Contr Expend 15,460 819304 295,000 Police, Pers Serv 5,295 831201 9,876 Police, Contr Expend 131,366 831204 134,416 Fire, Pers Serv 49,325 834101 45,469 Fire, Contr Expend 3,750 834104 5,330 Safety Inspection, Pers Serv 192,575 836201 205,732 Safety Inspection, Contr Expend 15,503 836204 35,576 Street Lighting, Contr Expend 25,820 851824 27,805 Publicity, Contr Expend 4,724 864104 8,389 Indus Develop Agency, Contr Expend 18,433 864604 18,433 Youth Prog, Pers Serv Youth Prog, Contr Expend 95,413 47,955 873101 873104 105,557 48,029 Celebrations, Contr Expend 6,420 875504 1,716 Zoning, Pers Serv 111,194 880101 126,150 Zoning, Equip & Cap Outlay 880102 670 Zoning, Contr Expend 3,072 880104 7,572 Planning, Pers Serv 25,033 880201 35,716 Planning, Equip & Cap Outlay 880202 670 Planning, Contr Expend 57,121 880204 108,297 Environmental Control, Contr Expend 880904 600 Page 13 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Results of Operation Detail Expenditures And Other Uses Refuse & Garbage, Contr Expend 55,823 B81604 56,819 Comm Beautification, Contr Expend 3,601 4,927 B85104 State Retirement, Empl Bnfls Social Security, Empl Bnfls Worker's Compensation, Empl Bnfls Life Insurance, Empl Bnfls Disability Insurance, Empl Bnfls Hospital & Medical (dental) Ins, Empl Bnfl 33,492 37,215 13,033 1,074 1,112 74,671 B90108 B90308 B90408 B90458 B90558 B90608 31,800 40,291 25,849 1,094 678 64,450 Debt Principal, Serial Bonds Debt Principal, Bond Anticipation Notes B97106 B97306 126,500 98,054 126,500 56,464 Debt Interest, Serial Bonds Debt Interest, Bond Anticipation Notes 27,292 35,763 B97107 B97307 23,180 55,263 Transfers, Other Funds 315,000 B99019 Page 14 OSC Municipality Code 130386800000 (8) GENERAL TOWN-OUTSIDE VG Changes in Fund Equity TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Prior Period Adj-Increase To Fund Equity Prior Period Adj - Decrease In Fund Equity Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity - End of Year Page 15 782,953 B8021 733,470 17 ,549 88012 88015 241 800,502 B8022 733,229 1,892,939 1,841,421 1,959,972 2,144,886 733,470 B8029 429,764 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Budget Summary -- - 1,127,934 B1199N 1,153,000 86,000 B1299N 87,000 10,000 B2499N 10,000 200,000 B2599N 220,000 93,500 B3099N 93,500 160,034 B599N 133,914 Estimated Revenues And Other Sources Est Rev - Non Property Tax Items Est Rev - Departmental Income Est Rev - Use of Money And Property Est Rev - Licenses And Permits Est Rev-State Aid Appropriated Fund Balance Page 16 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (B) GENERAL TOWN-OUTSIDE VG Budget Summary Appropriations And Other Uses App - General Government Support App - Public Safety App - Transportation App-Economic Assistance And Opportunity App - Culture And Recreation App - Home And Community Services App - Employee Benefits App - Debt Service 227,130 452,545 36,400 24,500 177,348 281,470 175,201 302,874 B1999N B3999N B5999N B6999N B7999N B8999N B9199N B9899N 232,500 448,146 36,400 24,500 177,968 283,190 179,765 314,945 Page 17 OSC Municipality Code 130386800000 Balance Sheet TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 18 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet Page 19 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Results of Operation Page 20 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Results of Operation II Page 21 (CD) SPECIAL GRANT Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year Fund Equity-End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 22 CD8021 CD8029 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (OB) HIGHWAY-PART-TOWN Balance Sheet Assets Cash In Time Oeposits 308,421 OB201 211,802 Accounts Receivable 4,432 OB380 Oue From Other Funds 71,940 OB391 100,000 Oue From Other Governments 4,160 OB440 Inventory of Materials & Supplies 40,987 OB445 40,986 Prepaid Expenses 6,673 OB480 6,823 Page 23 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (DB) HIGHWAY-PART-TOWN Balance Sheet Liabilities And Fund Equity Accounts Payable ... 224,202 OB600 135,984 Accrued Liabilities 10,359 OB601 10,359 Due To Other Funds 182,777 OB630 133,738 Unreserved Fund Balance Appropriated Unreserved Fund Balance Unappropriated 19,275 OB911 79,530 Page 24 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (08) HIGHWAY-PART-TOWN Results of Operation Detail Revenues And Other Sources Real Property Taxes 1,732,426 081001 2,438 082300 20,181 082401 502 082665 960 082680 1,925 082690 535 082701 4,372 082770 123,001 083501 083960 084960 2,071,529 Transportation Services, Other Govts 2,343 Interest And Earnings 35,339 Sales of Equipment Insurance Recoveries Other Compensation For Loss 505 519 Refunds of Prior Year's Expenditures Unclassified (specify) 108 342 St Aid, Consolidated Highway Aid St Aid Emergency Oisaster Assistance 123,870 2,784 Fed Aid, Emergency Oisaster Assistance 8,685 Interfund Transfers 378,618 085031 47,484 Page 25 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (OB) HIGHWAY-PART-TOWN Results of Operation Detail Expenditures And Other Uses Administration-Contractual 22,322 OB17104 10,917 Unallocated Insurance, Contr Expend 28,835 OB19104 31,935 Maint of Streets, Pers Serv 810,923 OB51101 820,906 Maint of Streets, Contr Expend 99,433 OB51104 99,253 Perm Improve Highway, Contr Expend 123,001 OB51124 123,870 Machinery, Pers Serv 52,934 OB51301 55,226 Machinery, Equip & Cap Outlay OB51302 19,455 Machinery, Contr Expend 87,664 OB51304 63,893 Brush And Weeds, Pers Serv 121 OB51401 10,943 Brush And Weeds, Contr Expend 11,053 OB51404 11 ,405 Snow Removal, Pers Serv 34,297 OB51421 68,106 Snow Removal, Contr Expend 255,985 OB51424 254,107 State Retirement, Empl Bnfts Social Security, Empl Bnfts Worker's Compensation, Empl Bnfts Life Insurance, Empl Bnfts Unemployment Insurance, Empl Bnfts Oisability Insurance, Empl Bnfts Hospital & Medical (dental) Ins, Empl Bnft 92,747 68,453 101,654 2,208 OB90108 OB90308 OB90408 OB90458 OB90508 OB90558 OB90608 81,036 72,976 106,114 1,844 4,965 928 204,580 972 196,271 Oebt Principal, Bond Anticipation Notes 214,400 OB97306 55,500 Oebt Interest, Serial Bonds 61,674 OB97107 106,864 Transfers, Other Funds OB99019 28,430 Page 26 OSC Municipality Code 130386800000 (08) HIGHWAY-PART-TOWN Changes in Fund Equity ANALYSIS OF CHANGES IN FUNO EQUITY Fund Equity - Beginning of Year Prior Period AdJ.- Increase In Fund Equity Prior Period Adj - Decrease In Fund Equity Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity - End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 27 19,265 OB8021 19,275 088012 0 088015 19,265 OB8022 19,275 2,264,958 2,293,508 2,264,948 2,233,253 19,275 OB8029 79,530 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (DB) HIGHWAY-PART-TOWN Budget Summary - Estimated Revenues And Other Sources Est Rev - Real Property Taxes EsT. ReV. - Intergovernmental Charges Est Rev - Use of Money And Property Est Rev - State Aid 2,071,529 1,500 10,000 104,000 DB 1 049N DB2399N DB2499N DB3099N 2,090,709 1,500 10,000 125,000 Estimated - Interfund Transfer 104,058 DB5031 N 111 ,200 Page 28 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (DB) HIGHWAY-PART-TOWN Budget Summary -- - Appropriations And Other Uses App - Transportation App - Employee Benefits App - Debt Service 1,619,490 475,379 196,218 DB5999N DB9199N DB9899N 1,677,341 494,845 166,223 Page 29 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet Page 30 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet Page 31 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Results of Operation Page 32 Results of Operation TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 - Page 33 (FX) WATER Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Fund Equity - End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 34 FX8021 FX8029 OSC Municipality Code 130386800000 Budget Summary TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 35 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet Page 36 -....... TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Balance Sheet Page 37 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Results of Operation Page 38 .. ..... Results of Operation TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 39 (G) SEWER Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Fund Equity - End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 40 - .. G8021 G8029 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Budget Summary Page 41 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Balance Sheet Assets Cash In Time Deposits Cash Fiscal Agent 4,772,871 5,000 229 Accounts Receivable State & Federal Receivables Due From Other Funds 37,420 Page 42 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Balance Sheet Liabilities And Fund Equity Accounts Payable Due To Other Governments 387,666 H600 4,330 6 H601 7,907 58,889 H605 34,243 13,495,818 H626 3,357,000 314,906 H630 780,695 10,000 H631 Accrued Liabilities Retained Percentages, Cont Pay Bond Anticipation Notes Payable Due To Other Funds Unreserved Fund Balance Unappropriated -9,760,256 H911 631,345 Page 43 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Results of Operation Detail Revenues And Other Sources Interest And Earnings 161,317 H2401 199,132 Insurance Recoveries 19,122 H2680 Refunds of Prior Year's Expenditures Premium & Accrued Interest On Obligations H2701 72,230 H2710 Interfund Transfers 24,500 H5031 28,430 Serial Bonds Bans Redeemed From Appropriations H5710 844,500 H5731 11,580,000 1,238,818 Page 44 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (H) CAPITAL PROJECTS Results of Operation Detail Expenditures And Other Uses Assessment, Equip & Cap Outlay 184,509 H13552 91,710 Fiscal Agents Fees, Contr Expend 36,000 H13804 21,058 Engineer, Equip & Cap Outlay 189,883 H14402 387,603 Buildings, Equip & Cap Outlay 300,125 H16202 743,493 Central Data Process & Cap Outlay 6,490 H16802 Maint of Streets, Equip & Cap Outlay 305,643 H51102 275,448 Machinery, Equip & Cap Outlay 196,375 H51302 Sewage Treat Disp, Equip & Cap Outlay 29,607 H81302 142,074 Landfill Closure - Post Closure 1,031,136 H81612 Source Supply Pwr & Pump, Equp & Cap Outla 57,043 H83202 Water Trans & Distrib, Equip & Cap Outlay 27,122 H83402 192,101 Debt Principal, Bond Anticipation Notes H97306 738,000 Transfers, Other Funds 290,669 H99019 80,706 Page 45 OSC Municipality Code 130386800000 (H) CAPITAL PROJECTS Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Prior Period AdJ.- Increase In Fund Equity Prior Period Adj - Decrease In Fund Equity Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity - End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 46 .- -8,237,055 H8021 -9,760,256 9,732 H8012 17,414 H8015 -8,227,323 H8022 -9,742,842 1,121,669 13,046,380 2,654,602 2,672,193 -9,760,256 H8029 631,345 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (K) GENERAL FIXED ASSETS Balance Sheet Assets Land Buildings Improvements Other Than Buildings Machinery & Equipment Construction Work In Progress 7,782,217 K101 5,787,852 K102 3,465,640 K103 4,207,431 K104 7,783,375 K105 6,570,227 7.421,156 2,950,241 4,250,861 Page 47 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (K) GENERAL FIXED ASSETS Balance Sheet ....- Liabilities And Fund Equity Total Non-Current Govt Assets 29,026,515 K159 21,192,485 Page 48 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (PN) PERMANENT Balance Sheet - Assets Cash In Time Deposits 452,163 PN201 487,099 Due From Other Funds 23 PN391 Page 49 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (PN) PERMANENT Balance Sheet Liabilities And Fund Equity Due To Other Funds 9,500 PN630 Unreserved Fund Balance Unappropriated 442,685 PN911 487,099 Page 50 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (PN) PERMANENT Results of Operation L_ Detail Revenues And Other Sources Interest And Earnings 7,308 PN2401 5,886 Gifts And Donations Unclassified (specify) 8,738 446,296 PN2705 PN2770 30,095 39,900 Page 51 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (PN) PERMANENT Results of Operation Detail Expenditures And Other Uses Other Culture And Ree, Cant Expend 41,474 PN79894 31,390 Mise Home & Comm Serv, Cant Expend 20,348 PN89894 77 Page 52 OSC Municipality Code 130386800000 (PN) PERMANENT Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity-End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 53 ... 42,165 PN8021 42,165 PN8022 462,342 61,822 442,685 PN8029 442,685 442,685 75,881 31,467 487,099 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SL) LIGHTING Balance Sheet - Assets Cash In Time Deposits 9,211 SL201 16,718 Page 54 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SL) LIGHTING Balance Sheet - Liabilities And Fund Equity Accounts Payable 2,984 SL600 3,133 Due To Other Funds SL630 3,000 Unreserved Fund Balance Appropriated 153 SL910 10,585 Unreserved Fund Balance Unappropriated 6,074 SL911 Page 55 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SL) LIGHTING Results of Operation Detail Revenues And Other Sources Real Property Taxes 39,140 SL1001 39,331 Interest And Earnings 500 SL2401 1,004 Page 56 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SL) LIGHTING Results of Operation - Detail Expenditures And Other Uses Street Lighting, Contr Expend 32,296 SL51824 35,977 Page 57 OSC Municipality Code 130386800000 (SL) LIGHTING Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity - End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 58 -1,117 SL8021 -1,117 SL8022 39,640 32,296 6,227 SL8029 6,227 6,227 40,335 35,977 10,585 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SM) MISCELLANEOUS Balance Sheet Assets Cash In Time Deposits 94,182 SM201 70,989 Due From Other Funds SM391 83 Page 59 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SM) MISCELLANEOUS Balance Sheet Liabilities And Fund Equity Accounts Payable 948 SM600 39 21,321 SM630 Due To Other Funds Unreserved Fund Balance Appropriated 12,000 SM910 71,033 59,913 SM911 Unreserved Fund Balance Unappropriated Page 60 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SM) MISCELLANEOUS Results of Operation Detail Revenues And Other Sources Real Property Taxes 399,595 SM1001 399,095 Other Payments In Lieu of Taxes 54 SM1081 52 Interest And Earnings 5,441 SM2401 11,065 Page 61 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SM) MISCELLANEOUS Results of Operation Detail Expenditures And Other Uses Judgement And Claims, Contr Expend 20,024 SM19304 Ambulance, Pers Serv Ambulance, Contr Expend 14,024 SM45401 399,056 SM45404 14,024 395,505 Social Security, Empl Bnfts 1,073 SM90308 1,563 Transfers, Other Funds 21,321 SM99019 Page 62 OSC Municipality Code 130386800000 (SM) MISCELLANEOUS Changes in Fund Equity TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity - Beginning of Year Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity - End of Year Page 63 -- 122,320 SM8021 71,913 122,320 SM8022 71,913 405,090 410,212 455,497 411,092 71,913 SM8029 71,033 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Balance Sheet Assets Cash In Time Deposits 1,252,335 SS201 631,136 Sewer Rents Receivable 462,693 SS360 611,712 Due From Other Funds 610,296 SS391 763,025 Prepaid Expenses 19,087 SS480 18,000 Page 64 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Balance Sheet Liabilities And Fund Equity Accounts Payable 280,653 SS600 175,945 Due To Other Funds 75,796 SS630 168,585 Unreserved Fund Balance Appropriated 585,733 SS910 Unreserved Fund Balance Unappropriated 1,402,230 SS911 1,679,343 Page 65 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Results of Operation Detail Revenues And Other Sources Real Property Taxes 1,454,555 SS1001 1,468,220 1,428,355 SS2120 1,304,906 18,242 SS2128 287,408 445,108 SS2401 67,821 SS3960 3,095 SS4960 9,657 Sewer Rents Interest & Penalties On Sewer Accts Interest And Earnings State Aid Emergency Disaster Fed Aid, Emergency Disaster Assistance Interfund Transfers SS5031 8,976 Page 66 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Results of Operation Detail Expenditures And Other Uses Sewer Administration, Pers Sarv Sewer Administration, Contr Expend 18,533 SS81101 23,488 11,742 SS81104 11,831 293,099 SS81204 502,531 146,277 SS81302 396,104 1,219,245 SS81304 669,138 Sanitary Sewers, Contr Expend Sewage Treat Disp, Equip & Cap Outlay Sewage Treat Disp, Contr Expend Social Security, Empl Bnfts 1,403 SS90308 1,802 Debt Principal, Serial Bonds Debt Principal, Bond Anticipation Notes 1,374,720 SS97106 SS97306 1,407,528 Debt Interest, Serial Bonds Debt Interest, Bond Anticipation Notes 819,438 SS97107 SS97307 419,246 7,950 Page 67 OSC Municipality Code 130386800000 (55) SEWER Changes in Fund Equity ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year Prior Period Adj - Decrease In Fund Equity Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity-End of Year TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 Page 68 2,526,160 558021 1 ,987,963 558015 19,085 2,526,160 558022 1,968,878 3,346,260 3,150,083 3,884,457 3,439,618 1,987,963 558029 1,679,343 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Budget Summary Estimated Revenues And Other Sources Est Rev - Real Property Taxes Est Rev - Departmental Income Est Rev - Use of Money And Property 1,468,219 1,436,357 389,975 SS 1 049N SS1299N SS2499N 985,542 2,020,231 287,261 Appropriated Fund Balance 585,733 SS599N 528,311 Page 69 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SS) SEWER Budget Summary Appropriations And Other Uses App - Home And Community Services App-Employee Benefits App - Debt Service 1,574,578 7,789 2,297,917 SS8999N SS9199N SS9899N 1,627,848 6,612 2,186,885 Page 70 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Balance Sheet - Assets Cash In Time Deposits 149,701 SW201 119,412 Water Rents Receivable 270,709 SW350 413,916 Due From Other Funds 903 SW391 9,833 Page 71 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Balance Sheet - Liabilities And Fund Equity Accounts Payable 212,777 SW600 13,824 Due To Other Funds 14,904 SW630 232,925 Unreserved Fund Balance Appropriated 102,781 SW910 Unreserved Fund Balance Unappropriated 90,851 SW911 296,412 Page 72 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Results of Operation Detail Revenues And Other Sources Real Property Taxes 634,855 SW1001 819,930 SW2140 36,540 SW2142 1,000 SW2144 10,202 SW2148 14,559 SW2401 3,450 SW2665 1,727 SW2680 5,714 SW2690 SW3960 SW4960 633,238 Metered Water Sales Unmetered Water Sales Water Service Charges Interest & Penalties On Water Rents 812,270 27,711 184,856 Interest And Earnings 15,882 Sales of Equipment Insurance Recoveries Other Compensation For Loss 4,480 State Aid Emergency Disaster 3,603 Fed Aid, Emergency Disaster Assistance 11,322 Interfund Transfers 95,529 SW5031 24,246 Page 73 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Results of Operation Detail Expenditures And Other Uses Water Administration, Pers Serv 36,056 SW83101 33,079 Water Administration, Contr Expend 26,314 SW83104 55,916 Source Supply Pwr & Pump, Contr Expend 588,808 SW83204 45,957 Water Purification, Contr Expend 6,683 SW83304 17,100 Water Trans & Distrib, Contr Expend 273,894 SW83404 800,665 Emergency Disaster Work SW87604 15,850 Social Security, Empl Bnfts Worker's Compensation, Empl Bnfls 2,743 SW90308 2,966 SW90408 2.457 2,645 Debt Principal, Serial Bonds Debt Principal, Bond Anticipation Notes 90,918 SW97106 350,250 SW97306 91,369 153,050 Debt Interest, Serial Bonds Debt Interest, Bond Anticipation Notes 50,236 SW97107 263,580 SW97307 40,374 356,367 Page 74 OSC Municipality Code 130386800000 (SW) WATER Changes in Fund Equity TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 ANALYSIS OF CHANGES IN FUND EQUITY Fund Equity-Beginning of Year Restated Fund Equity - Beg of Year ADD - REVENUES AND OTHER SOURCES DEDUCT - EXPENDITURES AND OTHER USES Fund Equity-End of Year Page 75 262,575 SW8021 193,633 262,575 SW8022 193,633 1,623,506 1,717 ,608 1,692,448 1,614,829 193,633 SW8029 296,412 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Budget Summary - Estimated Revenues And Other Sources Est Rev - Real Property Taxes Est Rev - Departmental Income Est Rev - Use of Money And Property Est Rev - Interfund Revenues 633,238 781,000 5,530 SW1049N SW1299N SW2499N SW2801 N 636,368 810,736 5,130 96,634 Appropriated Fund Balance 102,781 SW599N 99,542 Page 76 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (SW) WATER Budget Summary Appropriations And Other Uses App - Home And Community Services App-Employee Benefits App - Debt Service 869,932 7,640 644,977 SW8999N SW9199N SW9899N 897,566 7,685 743,159 Page 77 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (TA) AGENCY Balance Sheet -- Assets Time Deposits 750,650 TA201 721,393 Due From Other Funds 58,790 TA391 59,390 Page 78 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (TA) AGENCY Balance Sheet - Liabilities And Fund Equity Due To Other Funds 28,977 TA630 Group Insurance Assoc & Union Dues Guaranty & Bid Deposits Bail Deposits Other Funds (specify) 13,535 -1 ,405 624,829 3,000 140,505 TA20 TA24 TA30 TA35 TA85 21,415 40 634,912 3,000 121,416 Page 79 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (W) GENERAL LONG-TERM DEBT Balance Sheet .. Assets Total Non-Current Govt Liabilities 22,177,107 W129 31,935,293 Page 85 OSC Municipality Code 130386800000 TOWN OF Wappinger Annual Update Document For the Fiscal Year Ending 2007 (W) GENERAL LONG-TERM DEBT Balance Sheet -- 658,382 W684 658,382 80,000 W686 80,000 163,725 W687 171,911 21,275,000 W628 31,025,000 Liabilities And Fund Equity Landfill Closure & Post Closure Judgments And Claims Payable Compensated Absences Bonds Payable Page 86 OSC Municipality Code 130386800000 (A) GENERAL Adiustment Reason Account Code A8015 Audit Adjustments (B) GENERAL TOWN-OUTSIDE VG Adjustment Reason Account Code B8012 audit adjustment Account Code B8015 audit adjustment (DB) HIGHWAY-PART-TOWN Adjustment Reason Account Code DB8012 rounding (SS) SEWER Adiustment Reason Account Code SS8015 audit adjustment (H) CAPITAL PROJECTS Adjustment Reason Account Code H8015 audit adjustment Account Code H8012 audit adjustment TOWN OF Wappinger Financial Comments For the Fiscal Year Ending 2007 Page 87 OSC Municipality Code 13C - .,.... o l!) 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NY 1260 I SEDORE & COMPANY 84'i485.5510 845.485.5547 845.897.1040 Certified Public Accountants, pc. www.sedoreco.com /lflll"- I ,)'cdoi'(', (/~'1 September 23,2008 RECE'"EO oel 0 3 2008 TOWN CLERK AI,1I1: S (!'IIt!!I/WI. 1/;,1 ;'1I11i'.> r: L('/t('J'/(). jJ:. IP'l llurld ,.\!. I !i!il1l~~'/it, (P-l ;"';I!(I! l. !!,fiN'i. IF, k!/in' I. !hlli'!l. 1/,., (}ldr;'L\ It Hilt, ()~'l Christopher Colsey, Supervisor Town of Wappinger 20 Middlebush Road Wappingers Falls, New York 12590 Weare pleased to confirm our understanding of the services we are to provide the Town of Wappinger, N ew York for the year ended December 31, 2007. We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, which collectively comprise the Town's basic fInancial statements, as of and for the year ended December 31, 2007. Accounting standards generally accepted in the United States provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to accompany the Town of Wappinger' s basic fmancial statements. As part of our engagement, we will apply certain limited procedures to the Town of Wappinger's RSI. These limited procedures will consist principally of inquiries of management regarding the methods of measurement and presentation, which management is responsible for affirming to us in its representation letter. Unless we encounter problems with the presentation of the RSI or with procedures relating to it, we will disclaim an opinion on it. The following RSI is required by generally accepted accounting principles that will be subjected to certain limited procedures, but will not be audited: 1. Management's Discussion and Analysis 2. Budgetary Comparison Schedules - General Fund, Highway Fund, and Sewer Fund Supplementary information other than RSI, such as combining and individual fund fInancial statements, also accompanies the Town of Wappinger's basic fInancial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic fInancial statements and will provide an opinion on it in relation to the basic financial statements: 1. Combining Balance Sheet - Non-Major Governmental Funds 2. Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-Major Governmental Funds 1 Large Firm Expertise,.., Local Firm Service Audit Objectives The objective of our audit is the expression of an opinion as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Town of Wappinger and other procedures we consider necessary to enable us to express such opinions. If our opinions on the financial statements are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and compliance will include a statement that the report is intended solely for the information and use of management, the body or individuals charged with governance. Others within the entity and specific legislative or regulatory bodies and is not intended to be and should not be used by anyone other than these specified parties. If during our audit we become aware that the Town of Wappinger is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will prepare a draft of your financial statements and related notes. You are responsible for making all management decisions and performing all management functions relating to the financial statements and related notes and for accepting full responsibility for such decisions. You will be required to acknowledge in the management representation letter that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you are required to designate an individual with suitable skill, knowledge or experience to oversee any non-audit services we provide and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining internal control, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation in the financial statements of the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the 2 Town of Wappinger and the respective changes in financial position, in conformity with U.S. generally accepted accounting principles. Management is responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the government involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the Town received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud, illegal acts, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for establishment and maintenance of a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous audits or other engagements or studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant audit findings and recommendations resulting from those audits or other engagements or studies. You are also responsible for providing management's views on our current fmdings, conclusions, and recommendations, as well as your planned corrective actions. Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the Town or to acts by management or employees acting on behalf of the Town. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations oflaws or governmental regulations that do not have a 3 direct and material effect on the financial statements. However, we will inform you of any material errors that come to our attention and we will inform you of any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures - Internal Control Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICP A professional standards and Government Auditing Standards. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Town of Wappinger's compliance with the provisions of applicable laws, regulations, contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Audit Administration, Fees and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. 4 .' We will provide copies of our reports to the Town, however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Sedore & Company, C.P.A.' s, P.c. and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to government regulators. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Sedore & Company, C.P.A.'s, P.C. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to government regulators. These government regulators may intend, or decide, to distribute the copIes. The audit documentation for this engagement will be retained for a minimum of seven years after the date the report is issued or as required by professional standards. If we are aware that an awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to destroying the audit documentation. We plan to begin our audit fieldwork on or about October 20, 2008 and issue our draft reports on or about November 20, 2008. Our fee for these services will be according to our proposal dated December 11,2001 sent to you under separate cover. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Our fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Government Auditing Standards require that we provide you with a copy of our most recent external peer review and any letter of comment and any subsequent reports and letters of comment received during the period of the contract. Our July 31, 2006 peer review report, letter of comment and response accompany this letter. We appreciate the opportunity to be of service to the Town of Wappinger, New York, and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, ~'rnlf~ Linda M. Hannigan, C.P.A. SEDORE & COMPANY, C.P.A.'s, P.C. J RESPONSE: This letter correctly sets forth the understanding of the Town of Wappinger, New York. By: Title: Date: LAWRENCE.D. BLAu, c.P.A., P.C. CERTIFIED PUBUC ACCOUNTANTS P.O. BOX 256 VERBAN~ N.Y.125S5-0256 TELEPHONE 1.914.588.4450' TELEFAX 1.S45.677 .9617 MEMBER AMaRlcAN INSTlTllTE OF CERTIAEO Pusuc ACCOUNTANTS N. Y. STATE SOCIETY OF CemF1EO Pusuc ACCOUNTANTs . . February 18,2007 Totbe Owners S~dore & Company Certified PublicAc.countants, P.C. We have reviewed tliesystein 9f quality control" fqr the accounting and auditing practice of Sedpre & . Company,. Certified Public Accountants, P.C. (the fum) in effect for the year ended July 31" 2006. A sys:tem of quality control encompas~es the :finn's organizational structure, the' policies adopted. and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the ,Statements on Qua:lity Control Standards issued by the. '. American Institute of CP As. (AICP A).. The firm is responsible for ciesigning a system of qualitY contrpl and co:r:nPlying with it to prov~de the firm'reasbnable assurance of conforming with professional standards in all material respects. Our responsibility is to express an opinion on the desigi:1 of the system of quality control and the firm's compliance with its system of quality'control based on ourreview. Our review was conducted in accordance with standards established 9Y the Peer Review Board of the AICPA. During our review, we-read required representations from the f~.interviewed fIrm personnel' and obtained an .understand4tg of the nature of the firm's accounting and ~uditing practice, and the design. of the firm's system of quality control sufficient to' assess 'the risks implicit in its practice. Based on our assessments, we selected engagements and anmin;~ative files to test for conformity with professional . ~tandards and compliance with the firm'$ system of quality control. The engagements selected represented' . a reasonable cross-section of. the firm's accounting and auditing 'practice wit:h emphasis on higher-risk ~ engagements. The engagements selected included among - others, engagements perfortned l;ID.der -- - Government Auditing Standards. Prior to concluding the review,we'reassessed the adequacy of the scope' of the peer review proc.edures-and met with firm management.to discuss the results of our review. We believe that the procedures we perfonp.ed :rrovide a reasonable basis for oUr opinion. . In performing our revieW, .we obta.i.O.e(i an understanding of the sYstem. of qu.ality control for the firm's accounting and auditing priCti.~e. In addition, we tested compliance with the nrm's quality control policies and procedures to the exten~ we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements.- Our review was based on selected' tests therefore it would not necessarily . detect all weaknesses in the syst~mof quality control or all instances .of - noncompliance with it. There are inherent limitations in the effectiveness of any system. of quality control and therefore noncompliance with the system of qUality control may occur arid not .be detected. Projection of.any evaluation of a system of quality conirolto future peIjods is. subject to the risk that the System of quality control may become inadeq\late because of changes in conditions, or because the degree of compli- ance with the .poliCies at pr0ce~ures may deteriorate. . . In our opinion, exceptfor the effects 'ofthe deficiencies described below, the system of qu.a.llty conirol for the accounting and auditing practice of Sedore ~ Company, gerti:fiedPubI1c Accountants, P .C. in eff~ for the year ended July 31, 2006, haS been desiglfed to meet the requirements of the quality con.trol standards for an accounting and auditing practi~ established by the AICP A and was complied with during . the year. then ended to provide 'die firm with reasonable as~ance of conforming 'with professional standards. Reasons for Modified' Opinion and Recommendation Deficiency - The firm's quality control policies and procedures require that accounting and auditing engagements be properly planned and documented using appropriate practice aids and checklists. - However, during our review of an engagement subject to Government Auditing Standards, we noted instances of non-compliance with the above policies and procedures, resulting in documentation . deficiencies in the planning and performance phases oftbe audit. The documentation deficiencies occurred in the areas of fraud considerations and corp.pliance testing. Because of the deficiencies, the engagement waS deemed substandard and we were not able to satisfy ourselves that portions of the audit were planned and perforined in accordance with professional standards. Recommendation - The finn should monItor compliance with their documentation requirements as part of their pre-issuance engagement reviews and annual inspections. Additionally, the finn should hold a training session on current documentation requirements. .~~ c'//! ~ C. ./ . . '~~ SEDORE & COMPANY July 9,2007 Beechwood Office Park 2678 South Road Poughkeepsie. NY 12601 tel 845.485.5510 .fax 845.4"85.5547 Fishkill 845.897.4&10 www.sedoreco.com Certified Public Accountants, P. C. New York State Society of Certified Public Accountants ALC.P .A. Peer Review Program 3 Park Avenue . New York, NY 10016-5991 J= L Sedore. Jr.. CPA Mark S. O'Sullivan, CPA J= E Lettuio. Jr.. CPA Linda M Harmigan, CPA Karen T. Hansmo CPA Jefftry L Brown. CPA Ladies and Gentlemen: This letter represents our response to the report issued ill connection with the review of OUI finn's system of quality control for the . accounting and auditing practice in effect for . the year ended July 31, 2006. The matters discussed in this letter will be monitored to ensure that they are effectively iml?lemented as part of OUI system of quality control. Deficiency that resulted in a modified report: Although we consider this documentation deficiep.cy to be isolated and, accordingly, not noted in connection with the other engagement workingpaper inspections and internal reviews, the firm has. modified its quality control policies and procedures to require a greater emphasis on our documentation of planning stage procedures, including S.A.S. -#99 - ''Fraud Considerations", and referencing them to the performance sections of our. workingpapers. In additio~ we also require that an appropriate level person who is not involved in the engagement, review the workingpapers for content and complete a . Sllmmary review checklist. Furthermore, documentation requirements are continuously emphasized at om: ~'s internal training sessions. Finally, we have discussed with our peer review team that out next p~er review examination ~e moved forwar~ to an earlier date, in order that tbis report modification be removed as soon as possible. . . Sincerely, Large Firm Expertise... Locaf Firm- Service