1993-12-31
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TOWN OF WAPPINGER, NEW YORK
FINANCIAL STATEMENTS
AS OF AND FOR mE YEAR ENDED
DECEMBER 31. 1993
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TOWN OF WAPPINGER, NEW YORK
TABLE OF CONTENTS
DECEMBER 31. 1993
DESCRIPTION:
PAGElS)
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Independent Auditors' Report on Internal Control
Structure Based on an Audit of General Purpose
Financial Statements Performed in Accordance
with Government Auditing Standards ...................................... .2-4
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Independent Auditors' Report on Compliance With
Laws and Regulations Based on an Audit of
General Purpose Financial Statements Performed in
Accordance With Government Auditing Standards ...............................5-6
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types and
Account Groups ..................................... . . . . . . . . . . . . . . .7-8
Combined Statements of Revenues, Expenditures and
Changes in Fund Equity - All Governmental Fund Types .... . . . . . . . . . . . . . . . . . . . . . .9-10
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Combined Statements of Revenues, Expenditures and
Changes in Fund Equity - Budget and Actual -
General and Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-26
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the accompanying general purpose financial statements of the Town of
Wappinger, New York, as of December 31, 1993, and for the year then ended. These
general purpose financial statements are the responsibility of the Town of Wappinger, New
York, 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,
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall general purpose financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in
all material respects, the financial position of the Town of Wappinger, New York, as of
December 31, 1993, and the results of its operations for the year then ended in conformity
with generally accepted accounting principles.
~.dkU O~~ ~(j~~ cPl1~/f!e.
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Wappingers Falls, New York
May 13, 1994
1
62 East Main Street. P.O. Box 918. Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-D542/fax (914) 831-5114 · Newburgh (914) 565-1373
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WIm GOVERNMENT AUDITING STANDARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the general purpose financial statements of the Town of Wappinger, New
York, as of and for the year ended December 31, 1993, and have issued our report thereon
dated May 13, 1993.
We have conducted our audit in accordance with generally accepted auditing standards, and
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Town
of Wappinger, New York, for the year ended December 31, 1993, we considered its internal
control structure 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 structure.
The management of the Town of Wappinger, New York, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related costs of
internal control structure policies and procedures. The objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance that assets
are safeguarded against loss from unauthorized use or disposition, and that transactions are
executed in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting
2
62 East Main Street. P,O. Box 918 · Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-0542/fax (914) 831-5114 · Newburgh (914) 565-1373
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principles. Because of inherent limitations in any internal control structure, errors or
irregularities may nevertheless occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control structure
policies and procedures in the following categories:
Accounting Controls
Cycles of the entities' activity:
Treasury or financing
Revenue/receipts
Purchases/disbursements
External financial reporting
Financial statement captions:
Cash and cash equivalents
Receivables
Property and equipment
Payables and accrued liabilities
Debt
Fund balance/equity
Accounting applications:
Billings
Receivables
Purchasing and receiving
Cash disbursements
Payroll
Property and equipment
General ledger
For all of the control categories listed above, we obtained an understanding of the design of
relevant policies and procedures and whether they have been placed in operation, and we
assessed control risk.
Our consideration of the internal control structure would not necessarily disclose all matters
in the internal control structure that might be material weaknesses under standards established
by the American Institute of Certified Public Accountants. A material weakness is a
reportable condition in which the design or operation of the specific internal control structure
elements does not reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the general purpose financial statements being
audited may occur and not be detected within a timely period by employees in the normal
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course of performing their assigned functions. We noted no matters involving the internal
control structure and its operation that we consider to be material weaknesses as defined
above.
However, we noted other matters involving the internal control structure and its operation
that we have reported to the management of the Town of Wappinger, New York, in a
separate letter dated May 13, 1994.
This report is intended for the information of the Supervisor, Town Board, and Management.
This restriction is not intended to limit the distribution of this report, which is a matter of
public record.
~~ O~~~ tx1~f{~CfJAS,P,(!.
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Wappingers Falls, New York
May 13, 1994
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITIN(} STANDARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the general purpose financial statements of the Town of Wappinger, New
York, as of and for the year ended December 31, 1993, and have issued our report thereon
dated May 13, 1994.
We conducted our audit in accordance with generally accepted auditing standards, and
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts and grants applicable to the Town of
Wappinger, New York, is the responsibility of the Town of Wappinger, New York
management. As part of obtaining reasonable assurance about whether the fmancial
statements are free of material misstatement, we performed tests of the Town of Wappinger's
compliance with certain provisions of laws, regulations, contracts and grants. However, the
objective of our audit of the general purpose financial statements was not to provide an
opinion on overall compliance with such provisions. Accordingly, we do not express such an
opinion.
The results of our tests indicate that, with respect to the items tested, the Town of
Wappinger, New York, complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to the items not tested, nothing came to our attention
that caused us to believe that the Town of Wappinger, New York, had not complied, in all
material respects, with those provisions.
5
62 East Main Street. P.O. Box 918. Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-Q542/fax (914) 831-5114 · Newburgh (914) 565-1373
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However, we noted certain immaterial instances of noncompliance that we have reported to
the management of the Town of Wappinger, New York in a separate letter dated May 13,
1994.
This report is intended for the information of the Supervisor, Town Board, and Management.
This restriction is not intended to limit the distribution of this report, which is a matter of
public record.
~b'u_)()i~'#.AU1 ~~~/C,<7~s)rP-(!'
Wappingers Falls, New York
May 13, 1994
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TOWN OF WAPPINGERt...,NEW YORK
COMBINED BALANC~ SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31. 1993
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ASSETS
Cash - Note A.6
Other Receivables (Net) -
Note A.15
Restricted Assets - Note G.2
State and Federal Receivables
Due From Other Funds - Note B
Prepaid Expenses
Deferred Compensation Plan Assets
Property, Plant and Equipment -
Notes A.3 and C
Amounts To Be Provided In
Future Budgets
GENERAL
$1,686,476
GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
REVENUE PRO.JECI'S
$1,126,016 $2,772,892
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235,836
433,054
50,000
2,894,940
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233,000
240
3,800,000
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TOTAL ASSETS
LIABILITIES
Accounts Payable
Retainage Payable
Compensated Absences - Note A.7
Due to Other Funds - Note B
Agency Liabilities
Bond Anticipation Notes Payable -
Note D
Serial Bonds Payable -
Notes A.12 and E
Judgments and Claims - Note G.l
$2.155.552
$1.609.070
$5.667.832
$ 26,033
$ 269,897
1,220
50,000
$ 182,479
131,572
183,000
TOTAL LIABILITIES
FUND EQUITY
Investment in General Fixed
Assets
26.033
321.117
4.297.051
Fund Balance:
Reserved - Note A.13
Unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND
FUND EQUITY
580,405
1.549.114
2.129.519
77,788
1.210.165
1.287.953
1.370.781
1.370.781
$2.155.552
$1.609.070
$5.667.832
The accompanying Notes to the Financial Statements are an integral part of this financial statement.
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FIDUCIARY
FUND TYPE
TRUST
AND AGENCY
$378,015
40 1.006
$401.006
ACCOUNT GROUPS
GENERAL
GENERAL LONG-TERM
FIXED ASSETS DEBT
TOTAL
(MEMORANDUM
ONLy) NOTE A.16
$ 5,963,399
668,890
2,894,940
50,000
233,000
240
22,991
13,921,415
14.227.531
$37.982.406
$
$
13,930,000
60.000
14.227.531
$ 478,409
137,958
237,531
233,000
395,840
3,800,000
13,930,000
60 .000
19.272.738
13,921,415
13,921,415
658,193
4.130.060
18.709.668
13.921.415
~13.921.415
~14.227.531
$37.982.406
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TOWN OF WAPPINGER NEW YORK
COMBINED STATEMENTS OF REV~J... EXPENDITURES
AND CHANGES IN FUND EQUITY -
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31. 1993
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GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
GENERAL REVENUE PROJECTS
REVENUES
Real Property Taxes - Note A.ll $ 1,434,766 $ 3,187,664 $
Real Property Tax Items - Note A.11 62,467 40
Non-Property Tax Items 667,467
Departmental Income 267,857 1,347,897
Intergovernmental Charges 1,695
Uses of Money and Property - Note A.6 48,953 52,806 216,631
Licenses and Permits 69,225
Fines and Forfeitures 92,611
Sale of Property and
Compensation for Loss 958 4,692
Miscellaneous Local Sources 2,380 42,116
State Aid 649,307 83,839
Federal Aid 74.385
TOTAL REVENUES 3.297.686 4.751.323 258.747
EXPENDITURES
General Government Support 1,227,286 512,317
Public Safety 183,270
Health 224,135
Transportation 92,320 1,324,092 244,771
Economic Assistance and Opportunity 1,601 156
Culture and Recreation 383,229
Home and Community Service 287,626 1,536,485 2,787,934
Employee Benefits 254,032 197,241
Debt Service - Notes A.12, D and E 422.925 1.385.428
TOTAL EXPENDITURES (2.852.289) (4.667.381) (3 .545 .178)
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 445 .397 83.942 (3.286.431)
OTHER FINANCING SOURCES (USES):
Operating Transfers In 125,000 437,137 431,458
Operating Transfers Out (431,458) (295,719) (266,418)
Debt Redeemed From Appropriations 130.760
TOTAL OTHER FINANCING SOURCES (USES) (306.458) 141.418 295.800
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES 138.939 225.360 (2.990.631)
FUND EQUITY, JANUARY 1,1993 1.990.580 1.062.593 4.361.412
FUND EQUITY, DECEMBER 31, 1993 $ 2.129.519 $ 1.287 .953 $ 1.370.781
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The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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TOTAL
(MEMORANDUM
ONLy) NOTE A.16
$ 4,622,430
62,507
667,467
1,615,754
1,695
318,390
69,225
92,611
5,650
44,496
733,146
74.385
8.307.756
1,739,603
183,270
224,135
1,661,183
1,757
383,229
4,612,045
451,273
1.808.353
01.064.848)
(2.757.092)
993,595
(993,595)
130.760
130.760
(2.626.332)
7.414.585
$ 4.788.253
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TOWN OF WAPPINGER NEW YORK
COMBINED STATEMENTS OF REVENUEs EXPENDITURES
AND CHANGES IN FUND EOUITY - BUDGET AND ACTUAL _
GENERAL AND SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31. 1993
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GENERAL FUND
VARIANCE -
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES
Real Property Taxes $ 1,434,766 $ 1,434,766 $
Real Property Tax Items 62,467 62,467
Non-Propertr Tax Items 667,467 667,467
Departmenta Income 267,857 267,857
Intergovernmental Charges 1,695 1,695
Uses of Mone~ and Property 48,953 48,953
Licenses and ermits 69,225 69,225
Fines and Forfeitures 92,611 92,611
Sale of Property and 958 958
Compensation for Loss
Miscellaneous Local Sources 2,379 2,380 1
State Aid 649,307 649,307
Federal Aid
TOTAL REVENUES 3.297.685 3.297.686 ---1
EXPENDITURES
General Government Support 1,227,288 1,227,286 2
Public Safety 183,270 183,270
Health - -
Transportation 92,320 92,320
Economic Assistance and Opportunity 1,601 1,601
Culture and Recreation 383,229 383,229
Home and Community Service 287,626 287,626
Employee Benefits 254,032 254,032
Debt Service 422.925 422.925
TOTAL EXPENDITURES (2.852.291) (2.852.289> ---.l
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 445.394 445.397 3
OTHER FINANCING SOURCES (USES):
Operating Transfers In 125,000 125,000
Operating Transfers Out (431.458) (431.458) 3
TOTAL OTHER FINANCING
SOURCES (USES) (306.458) (306.458)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) L.J
EXPENDITURES AND OTHER USES $ 138.936 138,939
FUND EQUITY, JANUARY 1,1993 1.990.580
FUND EQUITY, DECEMBER 31,1993 $ 2.129.519
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The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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BUDGET
$ 3,187,664
40
SPECIAL REVENUE FUND - NOTE A.14
VARIANCE -
FAVORABLE
lUNFA VORABLE)
AcruAL
$ 3,187,664
40
$
1,347,897 1,347,897
- -
160,225 52,806 (107,419)
4,691 4,692 1
- -
90,302 83,839 (6,463)
6.463 6.463
4.790.819 4.683.401 007.418)
1
(1)
(2)
(2)
007.420)
107,418
107.418
~ (2)
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS
DECEMBER 31. 1993
NOTE A - Summary of Accountine 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:
1. The Reporting Entity
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.
2. 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:
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
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
spendable resources." Governmental fund operating statements present
increases (revenues and other financing sources) and decreases (expenditures
and other financing 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, expandable 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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
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 .
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- Tenn 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.
3. 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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
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; and (2) principal and interest on general long-term
debt which is recognized when due.
4. Budgets
The Town employs a formal budgetary accounting system as a management tool.
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
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.
6. Cash and Investments
Cash includes amounts in demand deposits, as well as, short-term investments.
State statutes govern the investment policies of the Town. Special time deposits and
certificates of deposit not covered by Federal Deposit Insurance, must be
collateralized by the banking institutions with investments governed under state
statutes. All of the Town's deposits were covered by Federal Deposit Insurance,
collateralized with securities held by a third party custodian or were invested in
U. S. Government securities held by a third party custodian in the Town's name.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
The cash and investments of the Town at December 31, 1993, are as follows:
SPECIAL CAPITAL TRUST &
GENERAL REVENUE PROJECTS AGENCY
FUND FUND FUND FUND TOTAL
Non-Interest
Bearing Accounts $ 650 $ $ $ - $ 650
Interest Bearing
Accounts 1,295,651 686,208 2,772,892 378,015 5,132,766
u.s. Government
Securities 390.175 439.808 829.983
TOTAL $1.686.476 ~1.126.016 $2.772.892 ~378.015 $5.963.399
7. 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
$237,531 of accrued vacation and sick leave at December 31, 1993, has been
recorded in the General Long-Term Debt Account Group of Accounts, representing
the II Town II commitment to fund such costs from future operations.
8. Pension Plans
General Information
The Town of Wappinger participates in the New York State and Local Employees'
Retirement System (System). This is a cost sharing multiple public employer
retirement system. Obligations of employers and employees to contribute and
benefits to employees are governed by the New York State Retirement and Social
Security Law (NYSRSSL). The System offers a wide range of plans and benefits
which are related to years of service and final average salary, vesting of retirement
benefits, death and disability benefits and optional methods of benefit payments. All
benefits generally vest after ten years of credited service.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
The NYSRSSL provides that all participants in each system are jointly and severally
liable for any actuarial unfunded amounts. Such amounts are collected through
annual billings to all participating employers. Generally, all employees, except
certain part-time employees, participate in the System. The System is
noncontributory except for employees who joined the Employees' Retirement System
after July 27, 1976 who contribute 3 % of their salary. Employee contributions are
deducted by employer's from employees' paychecks and are sent currently to the
Employees' Retirement System.
Employee Groups Covered
Nearly all Town of Wappinger employees are eligible for membership in the System.
All employees employed in a full-time position who commenced employment after
June 30, 1976 are mandatory members. The total payroll for all
employees of the Town of Wappinger for fiscal year 1993 was $1,552,123 of which
$1,268,963 was attributable to employees covered by the Employees' Retirement
System.
Payments Due the System
Contributions payable to the Systems are billed in December, on the basis of salaries
paid/payable during the System's fiscal year beginning the previous April 1 and
ending the subsequent March 31, in accordance with funding requirements
determined by the actuary of the System. The contributions required and made to
the System in December 1993 amounted to $3,225 and satisfied the contribution
requirements through March 31, 1994. Employees contributed $27,194 to the
System during 1993. Contributions by employer and employee represented .25 %
and 2.1 % of covered payroll respectively.
The Pension Benefit Obligation (PBO) of credited projected benefits is a standardized
disclosure measure of the actuarial present value of pension benefits, adjusted for the
effects of projected salary increases estimated to be payable in the future as a result
of employee service to date. The retirement systems do not make separate
measurements for individual employers.
The PBO of credited projected benefits at March 31, 1993 for the Employees'
Retirement System, determined through an actuarial valuation performed as of that
date, is $46.4 billion. The net assets available to pay benefits at that date is $49
billion. Town of Wappinger employer's contribution was less than 1 % of total
contributions required of all employers participating in this System.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
Historical trend information showing the progress in accumulating sufficient assets to
pay benefits when due is presented in the Annual Financial Report of the System.
Additional detailed information concerning the System may also be found therein.
9. Deferred Compensation Plan
Employees of the Town of Wappinger may participate in a deferred compensation
plan adopted under the provisions of Internal Revenue Code Section 457 (Deferred
Compensation Plans with Respect to Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Town. Under
the plan, employees may elect to defer a portion of their salaries and avoid paying
taxes on the deferred portion until the withdrawal date. The deferred compensation
amount is not available for withdrawal by employees until termination, retirement,
death, or unforeseeable emergency.
The deferred compensation plan is administered by an unrelated financial institution.
Under the terms of an IRC Section 457 deferred compensation plan, all deferred
compensation an income attributable to the investment of the deferred compensation
amounts held by the financial institution, until paid or made available to the
employees or beneficiaries, are the property of the Town subject only to the claims
of the Town's general creditors. In addition, the participants in the plan have rights
equal to those of the general creditors of the Town, and each participant's rights are
equal to his or her share of the fair market value of the plan assets. The Town
believes that it is unlikely that plan assets will be needed to satisfy claims of general
creditors that might arise.
10. Post Employment Benefits
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 1993, $11,928 was paid on behalf of eight retirees and recorded as
expenditures in the General and Special Revenue Funds.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.1993
Summary of Accounting Policies (Continued)
11. 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, leaving the unpaids to the
County Commissioner of Finance.
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.
13. Reserves of Fund Equity
The Town records indicate that portion of the fund equity is legally segregated for a
specific future use. The following details the description and amounts of the reserves
used by the Town:
A. General Fund
Reserved for Encumbrances
Reserved for Downstream Drainage
Reserved for Inspection Fee
BALANCE AT
DECEMBER 31. 1993
$ 11 ,289
239,116
330.000
~ 580.405
~ 77.788
B. Special Revenue Fund
Reserved for Encumbrances
14. 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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
Summary of Accounting Policies (Continued)
Certain Special Revenue Funds have not been included in the comparison because
they do not have legally authorized (appropriated) budgets. The activity of these
unbudgeted funds, as follows, is provided in order to reconcile to the total
combined balances of the Special Revenue Funds:
JANUARY 1,
1993 REVENUES EXPENDITURES
OTHER
SOURCES DECEMBER 31,
roSES) 1993
Total for Funds
Included in Budget
Comparison
$1,062,841 $4,683,401
$4.599,707
$141,418
$1.287,953
Funds Not Included
in Budget Comparison
67.674
67.922
(248)
Total Special
Revenue Funds
~1.062.593 $4.751.323
$4.667.381
$141.418
$1.287.953
15. Allowance for Uncollectible Accounts
An Allowance for Uncollectible Accounts is not reflected in the Special Revenue
Fund. Past due accounts after one year are placed on the county tax rolls for
collection, and reimbursed to the Town as they are put on the tax rolls by the
County.
16. Total Columns on Combined Statements
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 data.
NOTE B - Interfund Receivables and Payables
The following is a summary of amounts due from and due to other funds as of December 31,
1993:
DUE TO DUE FROM
General Fund $233.000 $150,000
Capital Projects Fund 83,000
Special Revenue Fund -
-
TOTAL $233.000 $233.000
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
NOTE C - General Fixed Assets Account Group
The following is a summary of changes and adjustments in the General Fixed Assets Account
Group, for the year ended December 31, 1993:
BALANCE.
DECEMBER 31,
1992 ADDITIONS
Land $ 5,106,650 $
Buildings 3,981,038 413,126
Improvement Other
Than Buildings 2,371,330 76,096
Machinery and
Equipment 1.894.008 79.167
TOTAL $13.353.026 $568.389
BALANCE.
DECEMBER 31,
DELETIONS 1993
$ $ 5,106,650
4,394,164
2,447,426
1.973.175
$
$13.921.415
NOTE D - 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, 1993, are as follows:
AMOUNT
OUTSTANDING
ORIGINAL AT
ISSUE INTEREST AMOUNT OF DECEMBER 31,
PURPOSE DATE RATE ISSUE 1993
Water 9/17/91 2.50% $ 375,7(fJ $ 355,000
Water 9/17/91 2.50% 30,500
Sewer 9/17/91 2.50% 3,000,000 3,165,500
Sewer 9/17/91 2.50% 1.000.000 249 .000
TOTAL $4.375.7(fJ ~3.800.000
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TOWN OF WAPPINGERt NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTtD.)
DECEMBER 31. 1993
NOTE E - Serial Bonds Payable
The Serial Bonds Payable, as of December 31, 1993, are as follows:
AMOUNT
OUTSTANDING
ORIGINAL AT
ISSUE INTEREST AMOUNT DECEMBER 31,
PURPOSE DATE RATE OF ISSUE 1993
Water $ 66,000 $ 15,600
Sewer 104,000 24,000
Drainage 1.125.000 260.400
09-01-71 5.0% 1.295.000 300.000
Water 36,800 12,000
Sewer 55.200 18.000
02-15-73 5.0% 92.000 30.000
Water 400,000 160,000
Sewer 500,000 195,000
Drainage 375.000 145.000
03-01-74 5.8% 1.275.000 500.000
Water 2,630,000 1,081,000
Sewer 3,005,000 1,232,000
Drainage 400.000 162.000
05-01-77 5.375 % 6.035.000 2.475.000
Water 330,000 104,250
Sewer 222,000 70,000
Drainage 239.400 75.750
05-01-78 6.10% 791.400 250.000
Water 148,070 99,200
Sewer 362,000 242,400
Town Hall 700.000 468.400
12-01-85 7.75% 1.210.070 810.000
Water 364,500 229,800
Machinery and Equipment 203.000 115.200
05-01-87 6.3% 567 .500 345.000
Water 824,400 734,425
Sewer 528,000 465,975
Drainage 2.192.600 2.009.600
08-15-91 6.5% 3.545.000 3.210.000
Sewer 11-12-92 3% - 6.65% 6.060.000 6.010.000
$20.870.970 $13.930.000
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
NOTE E - Serial Bonds (Continued)
The changes in the Town's indebtedness during the year ended December 31, 1993 are
summarized as follows:
January 1, 1993
Balance
Additions
Serial Bonds
$14,618,000
$
Judgements and
Claims
120,000
Compensated
Absences
N/A
220.627
$14.958.627
$
Total
Reductions
$688,000
60,000
N/A
$748.000
December 31, 1993
Balance
$13,930,000
60,000
237.531
$14.227.531
The annual requirements to amortize bonded debt, as of December 31, 1993, are as follows:
YEAR ENDING
DECEMBER 31. 1993
PRINCIPAL
$ 898,000
883,000
893,000
908,000
938,000
9.410.000
1994
1995
1996
1997
1998
Thereafter
~13.930.000
NOTE F - Operatine Leases
INTEREST
$ 825,077
776,923
728,607
678,820
626,923
3.909.227
$7.545.577
TOTAL
$1,723,077
1,659,923
1,621,607
1,586,820
1,564,923
13.319.227
~21.475.577
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, 1993 amounted to $24,944.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
At December 31, 1993, the approximate annual operating lease commitments, subject to
appropriation of funds, were as follows:
YEAR ENDING
DECEMBER 31.1993
1994
1995
1996
1997
1998
OPERATING
LEASES
$24,079
17,730
1,036
720
--11Q
Total Minimum Lease Payments
~44.285
NOTE G - Commitments and Contineent Liabilities
1. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome
of these cases and lawsuits, as determined by the Town Attorney, will result in a
maximum exposure of $25,289 to the Town.
2. 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. As indicated in the legal counsel representation letter, the following are the pending
or threatened litigation against the Town as of December 31, 1993:
a. Action was brought by a developer seeking to reduce benefit assessments for
sewer improvements levied by the Town. The matter has been settled. In
addition to a reduction in the number of benefit assessments, the Town is
required to pay the sum of $240,000, without interest, payable in four annual
installments of $60,000 per year. The first three installments of $60,000
were paid in the 1991, 1992 and 1993 calendar years, respectively.
The remaining installment, in the amount of $60,000, has been recorded in
the General Long-Term Debt Account Group.
b. A consent judgement was executed into 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
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1993
re-negotiated and approved by both parties. The amended judgement
required the Town of Wappinger, New York to pay a penalty of $40,000 for
failure to comply with the terms of the original consent judgement. The
penalty was paid during the 1992 calendar year.
The amended consent judgement required the Town to construct a sewer line
to the Tri-Municipal Sewer 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. 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 has been agreed to, extending the
date of completion to July 1, 1997.
Funding for the projects has been provided by the authorization in 1991 of
$17,020,000 in bonds, of which $6,060,000 has been issued through the New
York State Environmental Facility Corporation and $3,524,500 has been
issued in the form of Bond Anticipation Notes.
The terms of the agreement with the Environmental Facility Corporation
required that the serial bond proceeds 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 balance in the
Construction Fund Account amounted to $2,894,940 as of December 31,
1993 and is classified as a Restricted Asset.
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