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1992-12-31 . . TOWN OF WAPPINGER, NEW YORK FINANCIAL STATEMENTS . AS OF AND FOR THE YEAR ENDED DECEMBER 31. 1992 . . . RECEIVED AUG 2 0 1993 ELAINE SNOWDEN TOWN CLeRK .. TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31. 1992 DESCRIPTION: PAGElS) . Inde{)endent Auditors' Fle(K>rt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Inde{)endent Auditors' Fle(K>rt on Internal Control Structure Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance with Government Auditing Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4 . Inde{)endent Auditors' Fle(K>rt on Compliance With Laws and Flegulations Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance With Government Auditing Standards .............................. .5-6 GENERAL PlmPOSE FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups ..................................... . . . . . . . . . . . . . . .7-8 Combined Statements of Flevenues, EX{)enditures and Changes in Fund Equity - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . .9-10 . Combined Statements of Flevenues, EX{)enditures and Changes in Fund Equity - Budget and Actual - General and Special Flevenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12 Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-22 . . ., r------ Sedore, O'Sullivon &/Letterio 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, 1992, 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. 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, 1992, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. ., ~/ OI~~'~.J t!,t:J/}s,{J,C, Wappingers Falls, New York May 14, 1993 1 62 East Main Street · P.O. Box 918 · Wappingers Falls NY 12590 Wappingers Falls 914-297-1111/fax 914-297-1432 · Beacon 914-831-0542/fax 914-831-5114 ., .. Sedore, O'Sullivan &'Letterio Certified Public Accountants, PC. .. INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 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, 1992, and have issued our report thereon dated May 14, 1993. We have conducted our audit in accordance with generally accepted auditing standards, . Government Auditin~ Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and O.M.B. Circular A-128 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, 1992, 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 Wapplngers Falls 914-297-1111{fax 914-297-1432 · Beacon 914-831-0542/fax 914-831-5114 .. 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: Accountine 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 3 II' . 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 14, 1993. . 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. ~jO~~I(!PP~1 p,C. Wappingers Falls, New York May 14, 1993 . . . 4 - .. Sedore, O'Sullivan &;Zetterio Certified Public Accountants. P.C. .. INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 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, 1992, and have issued our report thereon dated May 14, 1993. We conducted our audit in accordance with generally accepted auditing standards, Government Auditin~ Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, II Audits of State and Local Governments. II Those standards and O.M.B. Circular A-128 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 financial 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 test 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 914-831-0542/fax 914-831-5114 .. 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 14, 1993. 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~~,ep,q~/tJ.(!. Wappingers Falls, New York May 14, 1993 .. .. .. 6 .. .. TOWN OF WAPPINGER, NEW YORK COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31. 1992 GOVERNMENTAL FUND TYPES ASSETS Cash - Note A.6 Other Receivables (Net) - Note A.12 Restricted Assets - Note G.3 State and Federal Receivables Due From Other Funds - Note B Prepaid Expenses Property, Plant and Equipment - Notes A.3 and C Amounts To Be Provided In Future Budgets .. TOTAL ASSETS LIABILITIES Accounts Payable Retainage Payable Accrued Liabilities and Compensated Absences - Note A.7 Due to Other Funds - Note B Agency Liabilities Bond Anticipation Notes Payable - Note D Serial Bonds Payable - Notes A.lO and E Reimbursement Due to Customer - Note G.l $2.013.736 $1.291.446 $9.015.326 .. $ 23,156 $ 228,259 $ 93,753 3,901 594 150,000 4,406,260 .. 23.156 228.853 4.653.914 TOTAL LIABILITIES FUND EQUITY Investment in General Fixed Assets Fund Balance: Reserved - Note A.ll Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY 350,448 14,249 1.640.132 1.048.344 4.361.412 1.990.580 1.062.593 4.361.412 .. $2.013.736 $1.291.446 $ 9.015.326 The accompanying Notes to the Financial Statements are an integral part of this financial statement. 7 .. .. FIDUCIARY FUND TYPE ACCOUNT GROUPS GENERAL TOTAL TRUST GENERAL LONG-TERM (MEMORANDUM AND AGENCY FIXED ASSETS DEBT ONLy) NOTE A.I3 ." $397,713 $ $ $ 6,116,262 470,750 5,788,363 192,012 150,594 240 13,353,026 13,353,026 14.958.627 14.958.627 "" $397.713 $13.353.026 $14.958.627 $41.029.874 $ $ $ $ 345,168 3,901 220,627 220,627 150,594 397,713 397,713 4,406,260 14,618,000 14,618,000 fill 120.000 120.000 397.713 14.958.627 20.262.263 13,353,026 13,353,026 364,697 7.049.888 13.353.026 20.767.611 .. $397.713 $13.353.026 $14.958.627 $41.029.874 8 ., TOWN OF WAPPINGER NEW YORK COMBINED STATEMENTS OF REVENiliisui EXPENDITURES .. AND CHANGES IN FUND EQ TY- ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED DECEMBER 31. 1992 GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS REVENUES Real Property Taxes - Note A.9 $1,553,636 $2,285,739 $ Real Property Tax Items - Note A.9 75,267 117 Non-Property Tax Items 709,348 .. Departmental Income 136,316 1,325,829 8,445 Intergovernmental Charges 2,025 Uses of Money and Property - Note A.6 55,771 66,920 112,324 Licenses and Permits 107,775 Fines and Forfeitures 96,450 Sale of Property and Compensation for Loss 1,429 8,987 Miscellaneous Local Sources 8,575 594 State Aid 598.114 59.275 TOTAL REVENUES 3.344.706 3.747.461 120.769 EXPENDITURES .. General Government Support 1,068,464 7,263 594,283 Public Safety 205,612 Health 180,990 Transportation 112,057 1,257,946 216,464 Economic Assistance and Opportunity 397 Culture and Recreation 350,534 Home and Community Service 252,240 1,524,954 743,038 Employee Benefits 267,642 189,766 Debt Service - Notes A.lO, D and E 487 .797 1.040.810 TOTAL EXPENDITURES (2.744.743) (4.201.729) 0.553.785) EXCESS OF REVENUES OVER (UNDER) .. EXPENDITURES 599.963 (454.268) 0.433.016) OTHER FINANCING SOURCES (USES): Operating Transfers In 319,954 Operating Transfers Out (112,135) (207,819) Proceeds From Obligations 6.060.000 TOTAL OTHER FINANCING SOURCES (USES) 012.135) (207 .819) 6.379.954 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 487 .828 (662.087) 4.946.938 FUND EQUITY, JANUARY 1,1992 1.502.752 1. 724. 680 (585 .526) .. FUND EQUITY, DECEMBER 31, 1992 $1.990.580 $1.062.593 $ 4.361.412 The accompanying Notes to the Financial Statements are an integral part of these financial statements. 9 .. . TOTAL (MEMORANDUM ONLy) NOTE A.13 $ 3,839,375 75,384 709,348 . 1,470,590 2,025 235,015 107,775 96,450 10,416 9,169 657.389 7.212.936 . 1,670,010 205,612 180,990 1,586,467 397 350,534 2,520,232 457,408 1.528.607 (8.500.257) . 0.287 .321) 319,954 (319,954) 6.060.000 6.060.000 4.772.679 2.641.906 . $ 7.414.585 10 .. 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. 1992 .. REVENUES Real Property Taxes Real Property Tax Items Non-Property Tax Items Departmental Income Intergovernmental Charges Uses of Money and Property Licenses and Permits Fines and Forfeitures Sale of Property and Compensation for Loss Miscellaneous Local Sources State Aid TOTAL REVENUES EXPENDITURES General Government Support Public Safety Health Transportation Economic Assistance and Opportunity Culture and Recreation Home and Community Service Employee Benefits Debt Service TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfers Out Proceeds From Obligations EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND EQUITY, JANUARY 1, 1992 BUDGETARY BASIS AS ADJUSTED FUND EQUITY, DECEMBER 31, 1992 $ 487,828 $487.828 1.502.752 $ 1.990.580 .. The accompanying Notes to the Financial Statements are an integral part of these financial statements. 11 .. . BUDGET SPECIAL REVENUE FUND - NOTE A.S VARIANCE - FAVORABLE (UNFAVORABLE) $ ACTUAL $ 2,285,739 117 $ 2,285,739 66,920 117 34,792 3,133 """ 1,291,037 63,787 1,325,829 8,987 8,987 - 594 594 59 .275 59 .275 3.708.825 3.747.461 38.636 7,263 7,263 . - 180,990 180,990 1,257,964 1,257,946 '18 1,529,968 1,524,954 5,014 189,904 189,766 138 1.040.810 1.040.810 (4.206.899) (4.201.729) 5.170 (498.074) (454.268) 43.806 """ (283,014) (207,819) 75,195 ~ (781.088) (662,087) $119.001 1. 724.680 $ 1.062.593 """ 12 """ .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31. 1992 .. 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/woman. 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 four generic fund types and two broad fund categories, as follows: GOVERNMENTAL FUND TYPES .. 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. 13 ." . . 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. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations. . . 3. Property, Plant and Equipment, and Long-Term Liabilities The accounting and reporting treatment applied to property, plant and equipment and long-term 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 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. 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. . 14 .. .. .. 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. 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. Special reporting treatments are also applied to governmental fund prepaid expenses to indicate that they do not represent "available spendable resources", even though they are a component of net current assets. Such amounts are offset by fund balance reserve accounts. 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. 4. 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. .. 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. S. 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 Special Grant Fund, which is part of the Special Revenue Fund, and the Capital Projects Fund, no budgetary controls were established or adopted. Unused appropriations of the annually budgeted funds lapse at the end of the year. .. 15 .. .., 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. The cash and investments of the Town at December 31, 1992, are as follows: .., SPECIAL CAPITAL TRUST & GENERAL REVENUE PROJECTS AGENCY FUND FUND FUND FUND TOTAL Non-Interest Bearing Accounts $ 650 $ $ $ $ 650 Interest Bearing Accounts 1,236,096 276,468 3,226,963 397,713 5,137,240 .., U.S. Government Securities 378.937 599.435 978.372 TOTAL $1.615.683 $875.903 $3.226.963 $397.713 $6.116.262 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 this 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 $220,627 of accrued vacation and sick leave at December 31, 1992, has been recorded in the General Long-Term Debt Account Group of Accounts, representing the "Town" commitment to fund such costs from future operations. 8. Pension Plans .., The Town employees are covered by the New York State Employees' Retirement System. Membership is mandatory for certain employees and optional for others. In accordance with the Retirement and Social Security Law, a participating employer cannot withhold membership in the Retirement System from any employee who desires to join. 16 .. . . All general employees employed in a full-time position who commenced employment after July 26, 1976 are mandatory members. A full-time position is one in which the employment is on a 12-month per year basis with a working week of not less than 30 hours and the appointment is not temporary or limited to a temporary period of less than one year. Generally, all employees appointed to either a competitive class position or a non- competitive class position before July 27, 1976 are also mandatory members. Annual deficiency contributions for all employers account for less than 1/2 % of the total contributions made to the Systems. The Town employees may also elect to participate in the New York State Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. The plan is available to all employees and permits them to defer a portion of their salary until future years, usually after retirement. The Town does not participate in any investments of the deferred amounts, and is not responsible for the final outcome of such investments. 9. 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. The Town collects the taxes on behalf of the Town and County 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. 10. 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. 11. Reserves of Fund Equity The Town records indicate that a 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 BALANCE AT DECEMBER 31. 1992 $ 20,448 Reserved for Development Study 330.000 $350.448 B. Special Revenue Fund Reserved for Encumbrances $ 14.249 17 .. .. 12. 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. 13. 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, 1992: .. DUE TO DUE FROM General Fund $ $150,248 Capital Projects Fund 150,000 Special Revenue Fund 346 346 Special Grant 248 TOTAL $150.594 $150.594 .. NOTE C - General Fixed Assets Account Group During the year 1992, the Town of Wappinger hired the independent firm of American Appraisal Associates to perform a physical inventory and appraisal of the Town's Fixed Assets. Adjustments representing retired assets and reclassification of certain items were made to comply with the Town's capitalization policy. The following is a summary of changes and adjustments in the General Fixed Assets Account Group, for the year ended December 31, 1992: BALANCE - (ADJUSTMENTS (ADJUSTMENTS BALANCE- DECEMBER 31, AND AND DECEMBER 31, 1991 ADDITIONS) (DELETIONS) 1992 .. Land $ 741,022 $4,365,628 $ $ 5,106,650 Buildings 16,436,502 (12,455,464) 3,981,038 Improvement Other Than Buildings 2,748,112 (376,782) 2,371,330 Machinery and Equipment 1.839.020 306.776 (251.788) 1.894.008 TOTAL $21.764.656 $4.672.404 $03.084.034) $13.353.026 18 .. ., 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, 1992, are as follows: AMOUNT ., OUTSTANDING ORIGINAL AT ISSUE INTEREST AMOUNT OF DECEMBER 31, PURPOSE DATE RATE ISSUE 1992 Water 9/17/91 3.0% $ 375,700 $ 375,700 Water 9/17/91 3.0% 30,500 Sewer 9/17/91 3.0% 3,000,000 3,000,000 Sewer 9/17/91 3.0% 1.000.000 1.000.000 TOTAL $4.375.700 $4.406.200 ., NOTE E - Serial Bonds Payable The Serial Bonds Payable, as of December 31, 1992, are as follows: PURPOSE ISSUE DATE INTEREST RATE ., Water Sewer Drainage 09-01-71 5.0% Water Sewer 02-15-73 5.0% Water Sewer Drainage ., 03-01-74 5.8% Water Sewer Drainage 05-01-77 5.375% 19 . AMOUNT OUTSTANDING ORIGINAL AT AMOUNT DECEMBER 31, OF ISSUE 1992 $ 66,000 $ 18,200 104,000 28,000 1.125.000 303.800 1.295.000 350.000 36,800 13 ,200 55 .200 19.800 92.000 33.000 400,000 176,000 500,000 214,500 375.000 159.500 1.275.000 550.000 2,630,000 1,179,000 3,005,000 1,344,000 400.000 177.000 6.035.000 2.700.000 .. .. NOTE E - Serial Bonds Payable (Cont'd.) AMOUNT OUTSTANDING ORIGINAL AT ISSUE INTEREST AMOUNT DECEMBER 31, PURPOSE DATE RATE OF ISSUE 1992 Water 330,000 125,100 Sewer 222,000 84,000 Drainage 239.400 90.900 05-01-78 6.10% 791.400 300.000 Water 148,070 105,300 Sewer 362,000 257,350 Town Hall 700.000 497.350 12-01-85 7.75% 1.210.070 860.000 Water 364,500 253,100 Machinery and Equipment 203.000 131. 900 05-01-87 6.3% 567 .500 385.000 Water 824,400 779,650 Sewer 528,000 497,000 Drainage 2.192.600 2.103.350 08-15-91 6.5% 3.545.000 3.380.000 Sewer 11-12-92 3% - 6.65% 6.060.000 6.060.000 $20.870.970 $14.618.000 .. The annual requirements to amortize bonded debt, as of December 31, 1992, are as follows: .. YEAR ENDING DECEMBER 31. PRINCIPAL INTEREST TOTAL 1993 $ 688,000 $ 835,554 $1,523,554 1994 898,000 825,077 1,723,077 1995 883,000 776,923 1,659,923 1996 893,000 728,557 1,621,557 1997 908,000 678,820 1,586,820 Thereafter 10.348.000 4.536.150 14.884.150 $14.618.000 $8.381.081 $22.999.081 .. 20 .. . NOTE F - Operatine 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, 1992 amounted to $23,688. At December 31, 1992, the approximate annual operating lease commitments, subject to appropriation of funds, were as follows: . YEAR ENDING DECEMBER 31. 1993 1994 1995 1996 1997 OPERATING LEASES Total Minimum Lease Payments $20,772 13,079 4,134 684 ~ $39.353 . NOTE G - Commitments and Contineent Liabilities 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 $11,000 to the Town. . 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. As indicated in the legal counsel representation letter, the following are the pending or threatened litigation against the Town as of December 31, 1992: 1. 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 two installments of $60,000 were paid in the 1991 and 1992 calendar years, respectively. The remaining two installments, in the amount of $120,000, have been recorded in the General Long-Term Debt Account Group. 2. A consent judgment was entered into by the Town and the Department of Environmental Conservation. Due to numerous technical difficulties, the Town of Wappinger was unable to meet the threshold dates contained in the consent judgment, . 21 .. - . . and an amended consent judgment was re-negotiated and approved by both parties. The amended judgment 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 judgment. The amount of $40,000 has been paid during the 1992 calendar year. In 1991 the Wappinger Sewer Transmission/Treatment Improvement was formed by the Town for the sole purpose of constructing a sewer line to the Tri-Municipal Sewer Plant, plus one million gallon expansion of said plant. The Town also authorized, in 1991, the issuance of $17,020,000 in bonds to pay for the construction of the sewer line and sewer expansion. . During 1992, to further implement the construction and expansion of the above described plant, the Town entered into an agreement with the New York State Environmental Facility Corporation, whereas the corporation issued Revolving Fund Revenue Bonds, Series 1992 B in behalf of the Town of Wappinger, in the amount of $6,060,000. Proceeds from the sale of such bonds were deposited by the corporation into a Construction Fund Account, and the balance in the account will be invested in U. S. Treasury Securities until they are drawn upon. The balance of the Construction Fund Account totaled $5,788,363 as of December 31, 1992. This balance may be used for the sole purpose of the project described above, and the Town needs the corporation's approval for drawing such funds. . . 22 .