Loading...
2001-11-02 TOWN OF WAPPINGER TOWN CLERK SUPERVISOR GLORIA J. MORSE (845) 297-5771 CONSTANCE 0 SMITH' TOWN COUNCIL TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS. NY 12590-0324 VINCENT BETTINA JOSEPH P PAOLONI JOSEPH RUGGIERO ROBERT L VALDATI November 2,2001 Office of The State Comptroller Division of Municipal Affairs Albany, New York 12236 To Whom it May Concern: Enclosed please find the Town of Wappinger, New York Financial Statements as of and for the year ended December 31,2000. Respectfully submitted, .. .. .. .. .. .. .. TOWN OF WAPPINGER, NEW YORK FINANCIAL STATEMENTS .. AS OF AND FOR THE YEAR ENDED DECEMBER 31,2000 .. .. iIIII .. MIl ~c€.\\l€.O ~ (\ \ 1.~~\ ~<J'! \) ,~I~ C~€.~'f.. \O~, .. .. MIl MIl - .. iIII '- .. TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31, 2000 III DESCRIPTION PAGElS} .. Independent Auditors' Report ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 .. Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 .. .. GENERAL PURPOSE FINANCIAL STATEMENTS: .. Combined Balance Sheet - All Fund Types and Account Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4-7 Combined Statements of Revenues, Expenditures and Changes in Fund Equity - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 .. .. Combined Statements of Revenues, Expenditures and Encumbrances - Budget and Actual - General and Budgeted Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9-10 .. Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11-27 OTHER SUPPLEMENTAL INFORMATION: .. Schedule of Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 .. Town of Wappinger Responses to Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . 29 .. .. .. .. .. III Sedore & Company Certified Public Accountants, Pc. PouJ;hkeepJie (845) 485-55/0 '.. JameJ L Sedore, JI:, CPA. Mark S O;~ullivan, CPA. JameJ F Letterio, .h:, CPA. ilia TereJa A. Bamhi, CPA. Lindo M, Hannigan, CPA. Koren T HanJeIl, CPA. Po. Box 918 . 62 East Main Street 'lI1Jppingers Falls, NY 12590 (84S) 297-1111 . Fax (845) 297-1432 www.sedoreandcompany.com Beacon (845) 831-0542 Newburgh (845) 565-1373 .. INDEPENDENT AUDITORS' REPORT .. .. To the Supervisor and Memrers of the Town Brnrrd Town of Wappinger, New York Wappingers Falls, New York 12590 .. IlII We have audited the accompanying general purpose financial statements of the Town of Wappinger, New York as of December 31, 2000, and for the year then ended as listed in the foregoing Table of Contents. These general purpose financial statements are the responsibility of the Town of Wappinger, New York'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 the standards applicable to financial audits contained in 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. ill .. .. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Town of Wappinger, New York as of December 31,2000, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. .. .. In accordance with Government Auditing Standards, we have also issued our report dated June 21, 2001 on our consideration of the Town of Wappinger, New York's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. .. .. ~~~, Wappingers Falls, New York June 21, 2001 e,r/f."s .. .. 1 .. Sedore & Company Certified Public Accountants, RG. Poughkeepsie (845) 485-5510 .. James L. Sedore, Jl:, C.P.A. Mark S O'Sullivan, C.P.A. James F Letterio, Jl:, C.P.A. .. Teresa A. Bamhi, C.P.A. Linda M. Hanni[;an, C.P.A. Karen T. Hansell, C.P.A. Po. Box 918 . 62 East Main Street. JI1Jppingers Falls, NY 12590 (84S) 297-1111 . Fox (84S) 297-1432 www.sedoreandcompany.com Beacol! (845) 83/-0542 Newburg/! (845) 565-/373 .. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS .. .. MIl To the Supervisor and Members of the Town Board Town of Wappinger, New York Wappingers Falls, New York 12590 .. MIl We have audited the general purpose financial statements of the Town of Wappinger, New York, as of and for the year ended December 31, 2000, and have issued our report thereon dated June 21,2001. 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. .. Compliance MIl MIl As part of obtaining reasonable assurance about whether the Town of Wappinger, New York'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 detennination 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. We also noted certain immaterial instances of noncompliance that we have reported to the management of the Town of Wappinger, New York, in the Schedule of Findings and Recommendations listed in the Table of Contents. MIl .. MIl Internal Control Over FOmancial Reportina: .. In planning and performing our audit, we considered the Town of Wappinger, New York'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 .. 2 .. .. .. .. control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material 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. We noted other matters involving the internal control over fmancial reporting that we have reported to the management of the Town of Wappinger, New York, in the Schedule of Findings and Recommendations listed in the Table of Contents. .. .. .. This report is intended solely for the information and use of the Supervisor, Town Board, Management, others within the Town and is not intended to be, and should not be, used by anyone other than these specified parties. .. Ah-u 'f- ~~. e ,f1, fI-,:::' Wappingers Falls, New York June 21, 2001 .. .. .. .. .. .. .. .. .. 3 .. .. II .. FIDUCIARY - FUND TYPE ACCOUNT GROUPS TRUST & LONG- GENERAL TOTALS III AGENCY TERM FIXED (MEMORANDUM FUND DEBT ASSETS __ ONL~_ ---..--------- ----~ -- - $277 ,844 $- $- $5,172,432 3,810,754 1,287,739 III 546,781 542 164,793 588,507 III 807,983 407,265 2,794 .. 20,115,246 20,115,246 807,903 807,903 307,932 307,932 .. 40,000 40,000 250,000 250,000 22,136,551 22,136,551 .. ___$2I~-,-l~ ~.J~},~42,386 - --- ~ ._-----_._._---_.._~_. $20,115,246 $56,446,680 - -- .. .. .. III .. .. - .. 5 .. TOWN OF WAPPINGER, NEW YORK COMBINED BALANCE SHEET (CONT'D.) - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31,2000 .. .. GOVERNMENTAL FUND TYPES GENERAL FUND LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable and accrued liabilities Retainage payable Bond anticipation notes payable NYS EFC project financing notes Due to other funds Due to other governments Other liabilities Compensated absence obligations Judgments and claims Landfill closure Long-term debt Total Liabilities FUND EQUITY Investments in general fixed assets Fund balance (deficit): Reserved for: Encumbrances Prepaids Miscellaneous Unreserved: Designated for: Subsequent years' expenditures Undesignated Total Fund Equity Total Liabilities and Fund Equity $47,829 63,495 19,401 491 131,216 35,363 2,794 330,000 SPECIAL REVENUE FUND $61,312 1,210 76,750 23,772 .. CAPITAL PROJECTS FUND ... .. $357,242 57,318 2,318,000 2,656,455 448,262 lIIIIi .. .. n~~,044~~837,277 26,044 963,489 530,383 _uu_ 1 ,59~<i49 2,341,800 2,930,295 _~~_~?~?_ _ J;],Q6),;iIL - - -----------..---..-------- The accompanying Notes to the Finam;ial Statements are an integral part of this financial statement. 6 .. .. .. 5~Q,~03 __ _J50,603 .. $}>Q{)L271 ~g;,]!37,88.0 .. .. .. .. .. .. .. .. .. .. FIDUCIARY FUND TYPE ACCOUNT GROUPS .. TRUST & AGENCY FUND .. .. .. .. .. .. LONG- TERM DEBT GENERAL FIXED ASSETS 7 TOTALS (MEMORANDUM ONLY) II III TOWN OF WAPPINGER, NEW YORK COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUlTY- ALL GOVERNMENTAL FUND TYPES EQR TIlliXEAR ENDED DECEMBER ~~2OOlI .. FmUCARY GOVERNMENTAL FUND TYPES FUND TYPE SPECIAL CAPITAL TRUST & TOTALS GENERAL REVENUE PROJECTS AGENCY (MEMORANDUM FUND FUND FUND FUND ONLY) --- $1,150,000 $3,516,816 $- $- $4,666,816 66,930 38 66,968 1,088,469 1,088,469 196,686 1,660,999 1,857,685 1,398 1,398 321,586 618,057 85,031 5,980 1,030,654 152,710 152,710 165,237 165,237 190 4,357 4,547 46,936 41,619 241,343 116,650 446,548 724,220 148,336 52,330 924,886 46,313 46,313 3,912,964 6,037,933 378,704 122,630 10.452,231 III REVENUES III Real property taxes Real property tax items Non property lax items Departmental income Intergovernmental charges Use of money and property Licenses and permits Fines and forfeitures Sale of property and compensation for loss Miscellaneous local sources State aid Federal aid .. .. Total Revenues .. EXPENDITURES General government support .. Public safety Health Transportation Economic assistance and opportunity III Culture and recreation Home and community services Employee benefits Debt serv ice Total Expenditures 1,390,675 780 2,859,296 4,250,751 240,934 240,934 3,250 231,700 234,950 142,225 1,565,405 239,991 1,947,621 4,494 4,494 637,700 5,000 642,700 280,663 1,661,784 714,824 2,657,271 300,650 244,394 545,044 816,247 2,638,837 3,455,084 ~----_._~-- ----~ 3,816,838 6,342,900 3,8!4, 11!_ _ ___5 ,OOQ. 13,978,849 96,126 (304,967) (3,435,407) 117,630 (3.526,618) 4,945,454 4,945,454 755,991 755,991 306,791 820,621 180,900 18,290 1.326,602 (509,447) (817,155) (1,326,602) ----- ---~---~ -~- ----- ----------- ___i2_02,656) 820,621 5,065,190 _____J8,29Q _~?Q!,445 (106,530) 515,654 1,629,783 135,920 2,174,827 :3...936~~2?_ - 1,382,573 (1,079,180) 0 . _4~J40,ll!. ~.t,,93Q>t2~ __~~~2~]P .$55D~6=D]_ _~~.H~~~Q __ __ __. ~,212~ 04 5 ------- -- _._-_.,~.._- .. Excess (defici~ncy) of Revenues over Expenditures .. Other fmancing sources (uses): Proceeds of obligations BANS redeemed from appropriations Operating transfers in Operating transfers (out) .. Total other financing sources ( uses) III Excess (deficiency) of revenues and other sources over (under) expenditures and other uses .. Fund Equity, December 31, 1999 Fund Equity, December 31, 2000 .. .. The accompanying Notes to the Financial Statements are an integral part of these financial statements. 8 III ... .. .. .. - 10 - III .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2000 .. NOTE A - Summary of Accountinl Policies .. .. The Town of Wappinger, New York ("the Town") was incorporated on May 20, 1875, under the provisions of the State of New York. The Town operates under a Town Board form of government, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as the Chief Executive Officer and as the Chief Fiscal Officer of the Town. .. The Town provides the following services: highway maintenance, water, sewer, planning, zoning, building and safety inspection, lighting, and culture and recreation. The financial statements of the Town 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, some of which are as follows: III III 1. The Reporting Entity 2. The Town, for financial purposes, includes all of the funds and account groups relevant to the operations of the Town of Wappinger, New York. The financial statements include organizations, functions and activities that are controlled by or dependent upon the Town. Control or dependence is determined on the basis of budget adoption, taxing authority, funding and appointment of the respective governing board. Fund Accounting The accounts of the Town are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which are comprised of each fund's assets, liabilities, fund equity, revenues and expenditures. Government resources are allocated to and for individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into fund types and two account groups, as follows: III III .. .. .. .. GOVERNMENTAL FUND TYPES ... The accounting and reporting treatment applied to assets and liabilities associated with a fund are determined by its measurement focus. All governmental fund types are accounted for on a spending "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund .. ... 11 - - .. .. TOWN OF WAPPINGER, NEW YORK NOTFS TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 .. .. Summary of Accountinr Policies (Continued) operating statements present increases (revenues and other fmancing sources) and decreases (expenditures and other fmancing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. .. General Fund .. .. The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. .. Special Revenue Fund Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust or major capital projects) that are legally restricted to expenditures for specified purposes. Capital Projects Fund This fund is used to account for financial resources to be used for the acquisition and construction of major capital facilities. .. .. FIDUCIARY FUND TYPE .. .. Trust and Agency Fund Trust and Agency Fund is used to account for assets held by the Town in a trustee capacity, or as an agent for individuals, other governments, and/or other funds. These include Expendable Trust and Agency Funds. Expendable Trusts are accounted for in essentially the same manner as governmental funds. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations. .. - 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. They are not involved with the measurement of the results of operations. .. .. 12 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 IIIIIIl Summary of Accountina Policies (Continued) III .. General FIXed Assets Account Group Property, plant and equipment used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. No depreciation has been provided on such property, plant and equipment. All property, plant and equipment are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated property, plant and equipment are valued at their estimated fair value on the date donated. Interest costs incurred during construction have not been capitalized, however. .. .. 3. The Town has adopted the accounting policy of not capitalizing "infrastructure" general fixed assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage system, lighting systems and similar assets) that are immovable and of value only to the Town. General Long-Term Debt Account Group Long-term liabilities expected to be financed from governmental fund types are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. They are recorded at the par value of the principal amount. No liability is recorded for interest payable to maturity. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non- current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts, and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental and expendable trust funds are accounted for using the "modified accrual basis" of accounting.. Their revenues are recognized when they become measurable and available as net current assets. All major revenues are susceptible to accrual. .. .. .. . . III .. .. .. .. 13 .. - ... III .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 lit Summary of Accountina Policies (Continued) lit .. .. .. .. .. .. .. .. .. .. .. .. .. ... Expenditures are generally recognized under the "modified accrual basis" of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) accumulated unpaid vacation, sick pay, and other employee amounts which are not accrued; (2) principal and interest on general long-term debt which is recognized when due; and (3) expenditures for inventory-type items which are recognized at the time of purchase. Expenditures for judgments and settled claims are also recognized when the related liability is incurred, that is when the judgment has been rendered or settlement has been reached. Unsettled claims and contingencies are recognized only if it is probable that an asset has been impaired or a liability has been incurred and the amount of the impairment or liability can be reasonably estimated. 4. Budgets The Town employs a formal budgetary accounting system as required by law. During the year, a budget was adopted and modified by the Town Board for the General Fund and Special Revenue Fund. However, for the Capital Projects Fund, budgets are established at the project level and continue until the project is completed. Unused appropriations of the annually budgeted funds lapse at the end of the year. s. Encumbrances 6. 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 as a control in preventing over expenditure of established appropriations. Open encumbrances are reported as reservations of fund balance since they do not constitute expenditures or liabilities and will be honored through budget appropriations in the subsequent year. Budget and Actual Comparison The budget and actual Comparison for Special Revenue Funds, included in the Combined Statement of Revenues and Expenditures - Budget and Actual, reflects budgeted and actual amounts for funds with legally authorized (appropriated) budgets. Certain Special Revenue Funds have not been included in the comparison because they do not have legally authorized (appropriated) budgets. The actual activity of these unbudgeted funds, as follows, is provided in order to reconcile to the total combined balances of the Special Revenue Funds: 14 .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO mE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 Summary of Accountinl Policies (Continued) iIIIlII JANUARY 1, 2000 REVENUES a (EXPENDITURES DECEMBER 31, OTHER SOURCES & OTHER USES) 2000 III Total for funds Included in Budget Comparison $2,382,573 $6,801,073 $(6,285,550) $2,898,096 Funds not included in Budget Comparison 57.481 ($7.350) 131 Total Special Revenue Funds $2.382.573 $6.858.~S4 $(6.342.900) $2.898.227 7. Cash and Investments iIIIlII .. .. iIIIlII Cash includes amounts in demand and time deposits, as well as, short-term investments. State statutes and the Town's own written investment policy govern the investment policies of the Town. The Town may invest its funds in banks or trust companies authorized to do business in the State of New York, as well as investing in obligations of the U. S. Treasury, U.S. Agencies, and obligations of the State of New York and its political subdivisions. Deposits not covered by Federal Deposit Insurance, are collateralized by the banking institutions with investments governed under state statutes. Short-term investments consist of investments in repurchase agreements. The repurchase agreements involve purchases by a broker of portfolio securities concurrently with an agreement by the broker to sell the same securities at a later date at a fixed price. Generally, the effect of such a transaction is that the Town can invest its excess cash balances at competitive interest rates. Market value of the repurchase agreements approximates cost plus accrued interest. The cash and investments of the Town at December 31, 2000, are as follows: ill iIIIlII .. .. iIIIlII .. .. .. .. .. .. 15 . . TOWN OF W APPlNGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 .. Summary or Accountinr Policies {Continued} .. Deposits and investments at year-end were entirely covered by federal deposit insurance, or by collateral held by a third party custodian in the Town's name. Disclosures relating to risk and type of investment as presented are indicative of activity and positions held during the year. 8. Accumulated Compensated Absences It is the Town's policy to permit. employees of the Highway Department to accumulate a limited amount of earned but unused vacation and sick leave, which will be paid to employees upon separation from the Town's service. Other Town employees accumulate unused compensated absences. However, such earned, but unused compensated absences, must be used during their period of employment with the Town. No payment will be made upon separation from the Town's service. In governmental and fiduciary funds, the cost of vacation and sick leave is recognized when payments are made to employees. A long-term liability of $307,932 of accrued vacation and sick leave at December 31, 2000, has been recorded in the General Long- Term Debt Account Group of Accounts, representing the Town's commitment to fund such costs from future operations. Pension Plans IiIlI .. III ilII ... 9. .. Plan Description III The Town of Wappinger participates in the New York State and Local Employees I Retirement System (ERS), and the Public Employees' Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and administrative head of the Systems. 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 issue 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, NY 12244. .. .. .. .. Fundin~ Policy The Systems are noncontributory except for"employees who joined the New York State and Loca1Employees' 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. .. ... .. ... 16 11III .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 11III SummaI:)' of Accountin& Policies (Continued) .. The Town of Wappinger is required to contribute at an actuarially determined rate. The required contributions for the current year and two preceding years were: 11III 2000 1999 1998 ERS fiI .. 11III The Town's contributions made to the Systems were in excess of 100 percent of the contributions required for each year. Post Employment Benefits 10. 11. In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially all of the Town employees may become eligible for these benefits if they reach normal retirement age while working for the Town. Health care benefits and survivors benefits are provided through an insurance company whose premiums are based on the benefits paid during the year. The Town recognizes the cost of providing benefits by recording its share of insurance premiums as an expenditure in the year paid. Employees contribute according to a sliding scale based on years of service. For the year of 2000, $23,600 was paid on behalf of eleven retirees and recorded as expenditures in the General and Special Revenue Funds. Property Taxes The Town submits an approved budget to the Dutchess County Commissioner of Finance by December 5th of the previous year. The County then establishes the warrant for the year which is due and payable on or about January 1 of each year. The Town collects the taxes on behalf of the Town and County without penalty through February 28th and with penalties and interest through August 31st. The Town's portion of the taxes is recognized and transferred prior to the County's portion. Therefore, the Town receives its entire tax levy, leaving the unpaid taxes to be collected by the County Commissioner of Finance. .. .. 11III 11III 11III 11III .. 11III 12. Long-Term Obligations .. Long-Term Debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the following year. For other Long-Term Obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the General Long-Term Debt Account Group. .. 17 iIIII .. lit .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 Summary of Accountinl Policies (Continued) .. 13. Insurance .. The Town of Wappinger assuines the liability for most risk including, but not limited to, property damage and personal injury liability. Such risks are covered by the purchase of commercial insurance. Judgements and claims are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. Workers compensation coverage is provided through a retrospective policy, wherein premiums are recorded based on the ultimate cost of the experience to date of workers in similar occupations. 14. Reserves of Fund Equity III .. .. The Town records indicate that portions of the fund equity are segregated for specific future uses. The following details the description and amounts of the reserves used by the Town: .. BALANCE AT DECEMBER 31. 2000 .. General Fund Reserved for Encumbrances Reserved for Prepaid Expenditures Reserved for Miscellaneous: Inspection Fees $35,363 2,794 330.000 .. TOTAL $368.157 Special Revenue Fund III Reserved for Encumbrances $26.044 15. Allowance for Uncollectible Accounts .. .. An Allowance for Uncollectible Accounts is not reflected in the Special Revenue Fund. Accounts. past due after one year are'placed on the Town tax rolls for collection, and reimbursed to the Town by the County of Dutchess if the property taxes remain unpaid. Total Columns on Combined Statements 16. .. Total Columns on the Combined Statements - Overview are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Such data is not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this ~ta. III .. .. ... .. 18 .. .. TOWN OF WAPPINGER, NEW YORK NO~ TO TIlE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31,2000 - NOTE B - Other Receivables ... Other Receivables at December 31, 2000, consist of the following: SPECIAL REVENUE FUND $ ..LQll WW CAPITAL PROJECTS FUND $ ~ $2.204 TRUST " AGENCY l.I.lND $ ~ ~ TOTAL $164,793 3.779 $164.793 ... .. Fines and Fees Receivable Accrued Interest Total GENERAL FUND $161,014 lt~1101i ... iii NOTE C - Interfund Receivables and Payables The following is a summary of amounts due from and due to other funds, as of December 31, 2000: DUE TO DUE FROM .. - General Fund Capital Projects Fund Special Revenue Fund Water Fund Sewer Fund TOTALS $63,495 448,262 44,750 1~,000 20.000 $588.507 $304,796 188,495 iii 10, ()()() 85.216 $588.507 NOTE D - General FIXed Assets Account Group iii The following is a summary of changes and adjustments in the General Fixed Assets Account Group, for the year ended December 31, 2000: .. ... BALANCE- 1ANUARY 1, 2000 ADDITIONS BALANCE - DECEMBER 31, IDELETIONSl 2000 ... Land Buildings Improvements Other Than Buildings Machinery and Equipment $5,333,999 6,278,853 $1,215,551 912,844 $ $6,549,550 7,191,697 2,892,058 2,892,058 iii 3.141.973 360.689 20.721 3.481.941 TOTALS $17.646.883 $2.489.084 $20.721 $20.115.246 .. .. ... 19 . III TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 - NOTEE - Bond Anticipation Notes Payable Bond Anticipation Notes Payable are renewed annually and are not to exceed five renewals, except for water and sewer improvements which may be renewed for the life of the improvement not to exceed twenty years. The Bond Anticipation Notes outstanding as of December 31, 2000, are as follows: The Town borrows money in order to acquire or construct buildings and public improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers receiving the benefit of the capital assets. These long-term liabilities, which are full faith and credit debt of the Town, are recorded in the General Long-Term Debt Account Group. The provision to be made in future budgets for capital indebtedness represents the amount, exclusive of interest, authorized to be collected in future years from taxpayers and others for liquidation of long -term liabilities. .. .. - .. ORIGINAL ISSUE PURPOSE DATE ORIGINAL MATURITY INTEREST AMOUNT OF DATE RATE ISSUE .. Water Sewer Sewer Landfill Highway Prop. Subtotals 07/06/00 09/17/91 07/11/96 07/09/98 07/09/98 07/06/01 4.69% $500,000 07/08/00 3.59% 4,000,000 07/08/00 3.59% 403,000 07/08/00 3.63% 580,000 07/08/00 3.63% 155.000 5.638.000 12121/01 4.23% 239,991 12/21/01 4.23% 363.000 602.991 $6.240.991 - .. Highway Equip. 12/21/00 Highway Equip. 12/21/00 Subtotals .. TOTALS .. NOTE F - Lon&:- Term Debt 1. Serial Bonds .. .. .. .. .. lilt lilt 20 AMOUNT OUTSTANDING AT DECEMBER 31, 2000 $500,000 785,000 170,000 250,000 70.000 1.775.000 239,991 303 .009 543.000 $2.318.000 - TOWN OF WAPPINGER, NEW YORK .. NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31. 2000 ill NOTE F - Lona- Term Debt (Continued) The Serial Bonds Payable, as of December 31, 2000, are as follows: AMOUNT .. OUTSTANDING ORIGINAL AT ISSUE MATURITY INTEREST AMOUNT DECEMBER 31, ... PURPOSE DATE DATE RATE OF ISSUE 2000 Water $ 36,800 $3,600 Sewer 55.200 ...MOO 02-15-73 11-15-03 5.0% 92.000 ..2.OOQ .. Water 400,000 48,000 Sewer SOO,OOO 58,500 iIIII Drainage 375.000 43.500 03-01-74 03-01-03 5.8% 1.275.000 150.000 III Water 2,630,000 395,000 Sewer 3,005,000 448,000 Drainage 400.000 57.000 05-01-77 05-01-04 5.375% 6.035.000 900 .000 .. Water 148,070 45,750 Sewer 362,000 112,125 .. Town Hall 700.000 217.125 12-01-85 06-01-05 7.75% 1.210.070 375.000 Water .. Machinery and Equipment 364,500 49,600 207.000 20.400 05-01-87 05-01-02 6.3% 571.500 1O.JKKl .. Water 824,400 464,500 Sewer 528,000 296,500 Drainage 2.192.600 1.284.000 .. Q8-15-91 08-15-11 6.5% 3.545.000 2.045.000 Sewer - Tri-Municipal 11-12-92 09-15-12 3%-6.65% 6.060.000 4.105.000 .. Emergency Services Building 10-01-94 10-01-14 6.01% 1.500 .000 1.215.000 Sewer - Tri-Municipal 12-15-94 11-15-15 4.10-6.90% 8.519.786 6.595.000 .. Sewer - Tri-Municipal 06-01-95 11-15-15 3.70-5.55% 2.610.054 2.085.000 Water - Fleetwood 07/30/98 10/15/18 3.70-5.15% 510.000 470.000 .. Purchase of Greystone Property 1 % 1/00 10/01/20 4.75-6.50% 2.085.000 2.085.000 TOTALS $34.013.410 $20.104.000 .. ... ... 21 .. III TOWN OF WAPPINGER, NEW YORK NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 ... NOTE F - Lon&- Tenn Debt (Continued) ... 2. Statutory Installment Bonds: The Town may borrow an amount in the form of a statutory installment bond not to exceed $1,000,000 for any purpose which has a period of probable usefulness. These long-term liabilities are recorded in the General Long-Term Debt account Group. The Statutory Installment Bonds Payable as of December 31, 2000 are as follows: AMOUNT OUTSTANDING AT DECEMBER 31, 2000 PURPOSE Emergency Services Building ISSUE MATURITY INTEREST DATE DATE RATE ORIGINAL AMOUNT OF ISSUE ... .. .. .. 5/4/00 5/4/05 5.5% $160.000 $ 160. ()()() TOTALS $160.000 $ 160 .()()() .. 3. N.Y.S. E.F.C. Project Fmancing Notes: .. The Town has entered into temporary financing agreements with the New York State Environmental Facilities Corporation the proceeds of which are being used to fund sewer improvements. These agreements provide for loans at no interest whose proceeds are distributed upon presentation of qualifying expenditures. The Town intends to permanently finance this debt upon maturity with long term serial bonds. At December 31, 2000 the Town had two issues, one recorded in the Capital Projects Fund, maturing within one year and one recorded in the Long Term Debt Account Group, maturing in 2003. ... . .. PURPOSE C~ital Proiects Fund Tn-Municipal Sewer Phase IlIA ORIGINAL ISSUE DATE ORIGINAL MATURITY INTEREST AMOUNT OF DATE RATE ISSUE AMOUNT OUTSTANDING AT DECEMBER 31, 2000 .. .. 9/23/99 9/23/01 $2.676.455 $2.656.455 .. Lon~ Term Debt Account Group Tn-Municipal Sewer Phase IlIA 10/26/00 10/26/03 $2.680.454 $2.680.454 .. - .. 22 . TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 IiIlI NOTE F - Lonl- Tenn Debt (Continued} The annual requirements to amortize bonded debt, as of December 31, 2000, are as follows: The changes in the Town's indebtedness during the year ended December 31, summarized as follows: BALANCE - JANUARY 1~ 2000 ADDmONS lREDUcnONSl Serial Bonds - Note F $19,427,000 $2,085,000 $(1,408,000) .. .. YEAR ENDING DECEMBER 31, 2001 2002 2003 2004 2005 Thereafter TOTAlS PRINCIPAL $4,181,455 1,689,000 4,086,454 1,522,000 1,322,000 12r800rOOO $25.600.902 ... .. .. 2. Chanles .. .. Statutory Installment Bonds 160,000 .. N.Y.S.E.F.C. Project Financing Note 2,680,454 .. Judgements and Claims - Note 1.1 100,000 .. Landfill Post-Closure Costs - Note J.l 200,000 .. Compensated Absences - Note A.8 TOTALS 127.108 $19.854.108 180.824 $5.156.278 .. INTERR~T $1,220,178 1,130,817 1,039,843 949,059 863,275 4,260rI14 ~~.4~~..~6.~ TOTAL $5,401,633 2,819,817 5,126,297 2,471,059 2,185,275 17r06Or 114 S35.064.1~ 2000, are BALANCE - DECEMBER 31.2000 $20,104,000 160,000 2,680,454 (60,000) 40,000 50,000 250,000 307.932 $23.542.386 $(1.468.000) NOTE G - Operatinl Leases The Town is committed under various leases for office equipment and communication equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended December 31, 2000 amounted to $28,354. At December 31, 2000, the approximate annual operating lease commitments, subject to appropriation of funds, were as follows: . .. .. .. YEAR ENDING DECEMBER 31. 2001 2002 2003 TOTAL MINIMUM LEASE PAYMENTS .. .. OPERATING LEASES $26,964 23,558 .ull $56.954 23 .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO mE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 .. NOTE H - Deficit Fund Balances .. Certain Capital Projects had deficits of fund equity at the end of the year which are listed below. These deficits arose through the funding of expenditures by issuing bond anticipation notes. As the notes are paid, revenue will be recognized and the deficits will be eliminated. ... Fleetwood Water S(5.IJ4l .. Central Wappinger Water Castle Point Landfill S(190.552) Purchase - Dean Property S094...8~:n $(65.352) . Emergency Central Wapp Water #1 $(286.374) .. Highway Equipment 1999 Highway Equipment 2000 $(302.5tQ) $(239.731) .. NOTE I - Commitments and Continlent Liabilities .. 4. Lawsuits .. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of the majority of these cases and lawsuits, as determined by the Town Attorney, should not result in material unfavorable settlements. Any return of property taxes made as a result of the settlement of a tax certiorari case is funded by an increase in the property taxes collected in the year subsequent to payment. The Town has recorded an estimated liability amounting to $40,000 in the Long Term Debt account group, representing possible future settlements on tax certiorari cases. . .. 2. Grants . The Town has received amounts from grantor agencies, principally the Department of Housing and Urban Development. Any allowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor agency cannot be determined at this time. .. 3. Tri-Municipal Sewer Plant Expansion .. An initial consent judgement was executed between the Town and the New York State Department of Environmental Conservation dated April 18, 1988, regarding alleged environmental violations. Due to numerous technical difficulties, the Town of Wappinger was unable to meet the threshold dates contained in the consent judgement, and an amended consent judgement was re-negotiated and approved by both parties. .. - - 24 .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO TH;E FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31,2000 . . NOTE I - Commitments and Continlent Liabilities (Continued) This amended consent judgement required the Town tQ construct a sewer line to the Tri- Municipal Sewer Treatment Plant, plus a one million gallon expansion of said plant. The Town, however, does not own the plant nor does it have voting rights on the Commission's governing board. The plant is owned and operated by the Tri-Municipal Sewer Commission, made up of representatives of the Town of Poughkeepsie and the Village of Wappingers Falls. Construction is on-going; however, as a result of additional difficulties between the Tri-Municipal Sewer Commission and the Department of Environmental Conservation, delays have occurred and a Third Amended Judgement was agreed to, extending the date of completion to July 1, 1997. The Town was able to begin using the expanded capacity as of July 1, 1997, however, certain construction related costs continue to be incurred. In 2001, the construction project grant was settled with the Department and closed. Funding for the project has been provided by two authorizations, for a total project cost of $19,630,054. Through December 31,2000, $17,189,840 in bonds have been issued through the Environmental Facility Corporation, and $2,060,414 in Bond Anticipation Notes have been issued. III .. .. .. .. - Total project costs incurred through December 31,2000, amounted to $18,393,645. Under the terms of the agreements with the Environmental Facility Corporation, serial bond proceeds are required to be deposited into a Construction Fund Account, be invested in U.S. Treasury securities until drawn upon, and be subject to regulatory approvals before being drawn upon. The unspent balance in the Construction Fund Account amounted to $807,983 as of December 31, 2000, and is classified as a Restricted Asset. - 4. Tn Municipal Sewer Plant Expansion - Pbase mA .. In May 1996, the Town entered into a contract with the Tri-Municipal Sewer Commission with regard to the further expansion of the Commission's sewage treatment facility, from 2.4 million gallon per day capacity to 3.4 million gallon per day capacity, the costs of which will be funded by the Town. In January 1999, the Town Board authorized the Phase 3A Sewer Improvement ,Project based on the May 1998 map, plan and report. The Town estimated construction and related project costs to be $10,400,000 which was increased to $10,900,000 in Apri12001. The Town has incurred $2,264,497 in professional fees and project costs to date. The Town has issued bond anticipation notes through the Environmental Facilities Corporation totaling $5,356,909 to fund present and future project costs. Unspent bond proceeds amount to $3,810,754 and is classified as a Restricted Asset. . .. .. .. 5. Authorized Debt As of December 31; 2000 the Town has authorized, but not issued, the following new debt: - Purpose Authorization Date Amount - Refunding Bonds 02/01/99 Tri Municipal Sewer Improvements-Phase IlIA 04/12/99 $4.700 .()()() $5.043.091 25 - III III TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 III NOTE J - Municipal T ..andf"ills ilIlII 1. Castle Point Landf"tll 2. The Town has voluntarily entered into a Consent Order with the New York State Department of Environmental Conservation to close, cap and monitor the landfill at Castle Point. The closing and capping project was completed in 1999. The costs of monitoring, which could be required for up to thirty years after closure, are currently estimated to amount to $250,000. However, since a final agreement with the Department of Environmental Conservation has yet to be reached as to the nature and extent of required monitoring, this estimate may change significantly. The Town has recorded this liability in the Long Term Debt account group. The costs of both closure and postclosure monitoring are ordinarily recognized over the expected useful life of the landfill. However, since the landfill has stopped accepting refuse, all costs are being recognized as the terms of closure and postclosure requirements are determined. The actual costs may be higher due to inflation, changes in technology or subsequent changes in regulations. The Town has been notified that it was awarded $274,722 in grant funds through the New York State Department of Environmental Conservation Landfill Closure Assistance Program, based on eligible construction expenditures. To date the Town has received 90 % of these grant monies from the State. The remaining 10% retainage will be released to the Town upon final N.Y.S.D.E.C. approval. Poua)lkeepsie-Wappineers-LaGranee .Ioint Landnn The Town has shared in the monitoring costs of a closed landfill, the Poughkeepsie- Wappinger-LaGrange Joint Landfill. This joint activity includes the City and Town of Poughkeepsie, the Village of Wappingers Falls and the Town of LaGrange, as well as the Town of Wappinger. All costs associated with monitoring are recognized as incurred. No assessment of the extent and cost of future monitoring costs has been made. Any such costs will be shared equally among the five municipalities. The Town's share of monitoring costs, for the year ended December 31, 2000, amounted to $1,701. Financial statements are available from the Joint Landfill's Board. .. ill ilIlII . . .. .. .. .. . Summarized unaudited financial information is as follows: .. Total Liabilities $22.030 $7.677 ~14.353 Total Assets Total Fund Balance . - .. 26 - III III TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) DECEMBER 31, 2000 .. IiIIII NOTE K - Subsequent Events 1. New Debt Issues Subsequent to December 31, 2000 the Town has issued the following new Bond Anticipation Notes: IiIIII ISSUE MATURITY INTEREST PURPOSE DATE DATE RATE AMOUNT III Tri-Municipal Sewer Improvement Phase III A 03/01/01 03/01/04 None ~2.476.671 III Tri-Municipal Sewer Improvement Phase IlIA 03/06/01 03/06/02 3.59% $2.566.420 .. Wappinger Water Improvement Area 05/03/01 05/03/02 3.12% $2.000.000 .. 2. New Debt Authorization - Subsequent to December 31, 2000 the Town has authorized the following new debt: .. PURPOSE Wappinger Water Improvement Area DATE 02/12/01 AMOUNT . ~8.590.000 * - Tri-Municipal Sewer Improvement Phase III A 06/27/01 $500.000 .. * Partially issued as described in Note K.l above. .. NOTE L - New Reportinr Standard In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34 "Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments." This Statement establishes new financial reporting requirements for state and local governments throughout the United States. When implemented, it will require new information and restructure much of the information that governments have presented in the past. Comparability with reports issued in all prior years will be affected. The Town is required to implement this standard for the year ending December 31, 2003. The Town has not yet determined the full impact that adoption of GASB Statement 34 will have on the financial statements. .. .. .. .. .. 27 IiIII IiIII ... - .. OTHER SUPPLEMENTAL INFORMATION ... ... ... ... IiIII ... ... - .. .. IiIII .. ... lilt .. .. TOWN OF WAPPINGER, NEW YORK SCHEDULE OF FINDINGS AND RECOMMENDA nONS FOR THE YEAR ENDED DECEMBER 31, 2000 .. .. OTHER MATTERS: PRIOR YEAR FINDINGS - CONTINUING: Findinr 1 - &crow Funds .. Cause: Payments have been made in excess of escrow amounts collected resulting in excess payments to individual project owners/developers. The Town collects escrow funds to ensure that costs incurred by the Town, while projects or subdivisions are being considered by the Planning Board, are borne by the applicants. The Town maintains records for each project/applicant so that balances can be monitored; however, in some cases the disbursements exceeded the escrow collected. Findinr: .. .. .. Effect: Unanticipated liabilities could be incurred by the Town for which no revenues/funds had been provided. We note that the Town has made significant improvements in the accounting for and the reconciling of escrow receipts and disbursements. We continue to note that the significant debit balances remain. As of December 31,2000 there were 20 applicant debit balances over $1,000, amounting to $92,540. We recommend that the Town review the projects involved, determining collectibility of these amounts and the effect, if any, on the Town project approval process. .. Recommendation: .. - - Fmdinr 2 - FIXed Assets Cause: The Town has not verified the existence of its fixed assets with amounts carried on its records during the year. The Town has not taken a physical inventory of its fixed assets since 1993. Findinr: .. .. Effect: The Town's fixed assets could be overstated. - Recommendation: The Town should periodically perform a physical inventory of its fixed assets, whether by hiring an outside consultant or requesting employees to compare updated lists to items on hand. Periodic inventories enable the Town to maintain accountability by those employees using Town assets, and to prevent loss. Finally, the Town will be able to use the fixed asset inventory to assist in its compliance with GASB #34 by the year 2003 as required. .. .. .. .. 28 .. TOWN OF WAPPINGER CONSTANCE O. SMITH SUPERVISOR SUPERVISOR'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, NY 12590-0324 .. .. TELEPHONE: (914) 297.2744 FAX: (914) 297-4558 .. .. .. TOWN OF WAPPINGER FINDINGS AND RECOMMENDATIONS RESPONSES TO AUDIT FOR THE YEAR ENDING DECEMBER 31,2000 .. Prior Year Finding .. .. FINDING 1: Escrow Funds Payments have been made in excess of escrow amounts collected resulting in excess payments to individual project owners/developers. - RESPONSE 1: The Town has put into place a procedure that we hope will prevent this from happening in the future. Weare reviewing the deficit accounts and making adjustments and also notifying those who owe some monies that they need to pay them immediately. - - FINDING 2: Fixed Assets The Town has not verified the existence of its fixed assets with amounts carried on its records during the year. .. RESPONSE 2: As the GASB procedures are implemented, this problem should be cleared up. .. .. .. ... ... 29 -