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1987-12-31 .. .. TOWN OF WAPPINGER, NEW YORK FINANCIAL STATEMENTS AND OTHER SUPPLEMENTAL INFORMATION AS OF AND FOR THE YEAR ENDED DECEMBER 31, 1987 .. RECEIVED AUli ;j 1 1~89 ELAINE H. SNOWDEN Town Crork .. .. .. ., TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31, 1987 ., PAGE Report of Independent Certified Public Accountants 1 General Purpose Financial Statements Combined Balance Sheets - All Fund Types and Account Groups 2-3 ., Combined Statement of Revenues, Expenditures and Changes in Fund Equity - All Governmental Fund Types and Expendable Trust Funds 4-5 Combined Statement of Revenues, Expenditures and Changes in Fund Equity - Budget and Actual - General and Special Revenue Funds 6-7 Combined Statement of Revenues, Expenses and Changes in Retained Earnings, All Proprietary Fund Types 8 ., Combined Statement of Changes in Financial Position All Proprietary Fund Types 9 Notes to Financial Statements 10-21 Other Supplementary Information Report on Schedule of Federal Financial Assistance 22 Schedule of Federal Financial Assistance 23-24 Report on Compliance 25-26 ., Report on Internal Control 27-35 Response to Findings 36-38 ., .. Certified Public Accountants, Pc. INDEPENDENT AUDITOR'S REPORT .. To The Supervisor and Members of the Town Board Town of Wappinger, New York .. We have audited the accompanying general purpose financial statements of Town of Wappinger, New York as of December 31, 1987, and for the year then ended. These general purpose financial statements are the responsibility of Town of Wappinger, N. Y. 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statement referred to above present fairly, in all material respects, the financial position of Town of Wappinger, N. Y. as of December 31, 1987, and the results of its operation and changes in financial position of its proprietary and similar trust fund types for the year then ended in conformity with generally accepted accounting principles. .. SJ.'11( o:rJI~ 9- M9<<J; c/?fr./1 P.(. Wappingers Falls, N. Y. August 23, 1989 A62 East Main St., P 0. Box 918 Wappingers Falls, NY 12590 914-297-1111 ft291 Main St. Beacon, NY 12508 914-831-0542 -1- ~14 East Main St. Pawling, NY 12564 914-855-5400 .. ---- 'Ia'm OF WAPPINGER, NEW YORK CXMBINED BAlANCE SHEErS ALL FUND 'lYPES AND Aca:::uNl' GROOPS ., DECEMBER 31, 1987 GOVERNMENI'AL FUND TYPES SPECIAL DEB!' CAPITAL GENERAL RE.VENUE SERVICE PROJECI'S ASSEIS Cash - Notes A.6 arrl A.ll $ 1,811,779 $ 96,141 $ 49,129 $ 110,244 other Receivables (Net) - Notes A.12 arrl B 30,065 state arrl Federal Receivables - ., Note C 102,016 2,928 Dle From other F\Jnjs - Note D 107,728 Property, Plant arrl Fquipnent - Note A.3, E arrl F Net of Accumulated Depreciation Atoounts Available in Debt Se:rvice Atoounts to be Provided in FUture B.1dgets 'IOl'AL ASSEIS $ 2.051.588 $ 99.069 $ 49.129 $ 110.244 .. LIABILITIES Accounts Payable $ 71,116 $ 1,807 $ $ Retainage 25,081 Accn1ed Expenses 9,830 Dle to Errployees Retirement Furrl - Note A.8 66,062 Dle to other F\Jnjs - Note D 34,485 71,513 Dle to other Governments - Note H Njercj Liabilities serial BorXls Payable - Notes .. A.I0 arrl G Capital L€'Q~ Payable - Note K '!UrAL LIABILITIES 147.008 36.292 96.594 FUND EX2UITY Invesbnent in General Fixed Assets Retained F.an1i.rxJs Reserved - Note A.ll Unreserved Furrl Balance Reserved - Note A.ll 439,191 49,129 1,350 .. Unreserved 1.465.389 62.777 12.300 '!UrAL FUND D;2UITY 1.904.580 62.777 49.129 13.650 '!UrAL LIABILITIES AND FUND FX:UI'lY $ 2.051.588 $ 99.069 $ 49.129 $ 110.244 '!he acc:arpanyin;J notes are an inta;Jral part of these statements. .. -2- " PROPRIErARY FIOOCIARY FUND TYPES FUND TYPES AccnJNT GROOPS 'IOI'AL GENERAL TRUST GENERAL IDNG-JI'ERM (MEM:>RANOOM ENI'ERPRISE AND AGENCY FIXED ASSEl'S DEB!' ONLY) $ 748,309 $ 212,458 $ $ $ 3,028,060 .. 266,640 296,705 104,944 107,728 6,160,340 6,160,340 8,443,995 8,443,995 49,127 49,127 2.622.078 2.622.078 .. $ 9.458.944 $ 212.458 $ 6.160.340 $ 2 . 671. 205 $ 20.812.977 $ 64,525 $ $ 137,448 25,081 54,911 64,741 54,720 120,782 1,730 107,728 127,162 127,162 61,936 61,936 .. 5,414,500 2,458,000 7,872,500 31.323 31. 323 5.535.666 61.936 2 . 671. 205 8.548.701 6,160,340 6,160,340 159,587 159,587 3,763,691 3,763,691 .. 150,522 640,192 1. 540.466 3.923.278 150.522 6.160.340 12.264.276 $ 9.458.944 $ 212.458 -$ 6.160.340 $ 2 . 671. 205 $ 20.812.977 .. -3- 'lWN OF WAPPINGER, NEW YORK a:MBINED STATEMENl' OF RE.VENUES, EXPmDI'IURES AND mANGES rn FUND ~ ALL GOVERNMENTAL FUND 'lYPES AND EXPENIl1ffiI.E mIST FUNa) FOR '!HE YEAR ENDED DECEMBER 31, 1987 REVE2IDES Real Prqlerty Taxes Real Prqlerty Tax Items Non-Prqlerty Tax Items Departmental Incane Uses of Money am Prqlerty Licenses am Pennits Fines am Forfeitures sale of Prqlerty am Carpensation for Loss Miscellaneous Local Sources state Aid Federal Aid 'lOI'AL REVE2IDES EXPmDI'IURES General Goverrnnent suwe>rt Public Safety Transportation Econanic Assistance am cgx,rtunity CUlture am Recreation Hane am Ccmmmi.ty service Dlployee Benefits Debt 5el:.vice '!OrAL EXPENDI'IURES EXCESS OF REVmUES OVER (UNDER) EXPENDI'IURES C7lHER FINANCING SaJRCES (USES) Proceeds Fran Cbligations Operatirq Transfers In OperatUq Transfers out '!OrAL C1lHER FINANCING SaJRCES (USES) EXCESS OF RE.VENJES AND OIHER S<XJRCES OVER (UNDER) EXPEm>I'IURES AND C1lHER USES FUND BMANCE, BEX;INNING OF YEAR FUND BMANCE, END OF YFAR .. GOVERNMENTAL FUND 'lYPES SPOCIAL CAPITAL GENERAL REVENUE PROJECl'S $ 2,522,986 40,366 52,171 69,347 113,213 83,813 55,126 $ 30,375 4,489 $ .. 10,430 10.430 .. 114,756 177,999 12,981 360.000 665.736 .. 84,159 11,973 1,173,132 30.769 113.709 148.573 (655,306) 580,000 580.000 .. $ (75,306) 88.956 13.650 4.237.055 925,856 92 , 515 1,107,136 11,503 '!he ac:x:x:rrpanyirq notes are an integral part of these statements. 130,398 170,834 345,205 257,585 471. 501 3 . 501. 030 135,524 147.027 736,025 1,546 6,344 6.344 742,369 1,546 975.514 $ 1.717.883 61.231 62.777 $ -4- .. ., FIWCIARY FUND 'IYPE 'rol'AL ~ (MEMJRANIlJM) '.IRJ5r ONLY) $ $ 2,553,361 40,366 .. 52,171 69,347 7,823 135,955 83,813 55,126 84,159 11,973 1,173,132 144.478 7.823 4.403.881 .. 1,040,612 92,515 1,296,638 265,922 183,815 345,205 257,585 831.501 ., 4.313.793 7,823 90,088 580,000 6,344 l6.344) l6.344) l6.344) 580.000 ., 1,479 670,088 149.043 1.274.744 $ 150.522 $ 1.944.832 ., -5- 'lU'm OF WAPPINGER, NEW YORK cn1BINED STATEMENl' OF REVENUES, EXPElIDI'IURES AND aIANGES IN FUND BAlANCE - arr:x:;EI' AND ACIUAL .. GENERAL AND SPECIAL REVEl-41JE FUNCS YEAR ENDED DECEMBER 31, 1987 GENERAL FUND VARIANCE - FAVORABIE IUI::GEI' ACIUAL (UNFAVORABIE) R:EVENUES Real Property Taxes $ 2,522,996 $ 2,522,986 $ (10) Real Property Tax Items 32,000 40,366 8,366 .. Non-Property Tax Items 22,000 52, 171 30,171 Departmental Income 22,500 69,347 46,847 Uses of Money arrl Property 101,200 113,213 12,013 Licenses am Pennits 46,020 83,813 37,793 Fines arrl Forfeitures 54,400 55,126 726 Sale of Property arrl Canpensation for Loss 84,159 84,159 Miscellaneous Local Sources 1,000 11,973 10,973 state Aid 684,346 1,173,132 488,786 Federal Aid 30.769 30.769 TOI'AL REVENUES 3.486.462 4.237.055 750.593 .. EXPDIDI'IURES General Goverrnnent 1,054,301 925,856 128,445 Public Safety 168,991 92,515 76,476 Transportation 1,107,209 1,107,136 73 Econc:mic Assistance arrl ~rtuni.ty 134,701 130,398 4,303 O1lture am Recreation 181,521 170,834 10,687 Hate arrl Carmmity Service 130, 164 345,205 (215,041) Enployee Benefits 297,750 257,585 40,165 Debt Service 524.264 471.501 52.763 .. TOI'AL EXPENDI'IURES 3.598.901 3.501. 030 97.871 EXCESS REVENUES OVER (UNDER) EXPENDI'IURES (112,439) 736,025 848,464 OIHER FmANcmG SOORCES (USES) Proceed!; Fran Obligations q;,erati.n:1 Transfers In 6,344 q;,erati.n:1 Transfers out EXCESS REVENUES AND cmIER SOORCES OVER (UNDER) .. EXPENDI'IURES AND OIHER USES $ (112.439) 742,369 $ 848.464 FUND ~CE, mx:;INNING OF YFAR 975.514 FUND ~CE, END OF YFAR $ 1.717.883 '!he acx::atpmyi.n:1 notes are an integral part of these statements. ... -6- " SPECIAL RE'VEMJE FlJNOO v"ARIANCE - '!UrAlS FAVORABlE (MEM:>RANIXJM) IIJIX;EI' ACIUAL (UNFAVORABIE) ONLY $ 30,375 $ 30,375 $ $ 2,553,361 ." 40,366 52,171 69,347 1,600 4,489 2,889 117,702 83,813 55,126 84,159 11,973 1,173,132 113.709 113.709 144.478 ." 31.975 148.573 116.598 4.385.628 925,856 92,515 11,503 (11,503) 1,118,639 31,975 135,524 (103,549) 265,922 170,834 345,205 257,585 471.501 ." 31. 975 147.027 (115 . 052) 3.648.057 1,546 1,546 737,571 6,344 ." s s 1.546 1,546 743,915 s 61.231 62.777 1. 036.745 S 1.780.660 ." -7- till TOWN OF WAPPINGER, NEW YORK COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1987 ." OPERATING REVENUES Current Use Charges Other TOTAL OPERATING REVENUES OPERATING EXPENSES Administration Contracted Services Depreciation Expenses ." TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Real Property Taxes State Aid Interest Interest Expense TOTAL NON-OPERATING REVENUES ." NET INCOME RETAINED EARNINGS - BEGINNING OF YEAR RETAINED EARNINGS - END OF YEAR ., PROPRIETARY FUND TYPE ENTERPRISE $ 950,807 17,057 967,864 21,781 1,006,115 318,204 1,346,100 (378,236) 692,930 100,770 48,714 (318,820) 523,594 145,358 3.777,920 S 3,923,278 The accompanying notes are an integral part of these statements. ., -8- ." "I"a'f1.J OF WAPP:rnGER, NEW YORK <Xl1BINED STATEMENr OF OWK;ES IN FINANCIAL IaJmOO AIL F9JPRIErARY FlJND 'l'YPES FOR 'IRE YEAR ENDED DECEMBER 31, 1987 mRKrnG CAPITAL PROVIDED F'ID1 OPERATIONS PROPRIE.TARY FUND TYPES ENTERmISE $ 145,358 318,204 463,562 364,500 17,397 245,459 240,998 296,250 308,211 $ 845 ,45~ ." SOORCES OF mRKING CAPIrnaL m:M OPERATIONS Net :Incx::ire Olarges 'Ib Operations Not Usin] Working Capital Depreciation Increase In I.D~..JI'enn D?bt Increase In Restricted Retained F.arni.rgs 'IDrAL RESOORCES PROVIDED ." APPLICATION OF mRKING CAPITAL Acx;Iuisition of Fixed Assets CUrrent Maturities I.o~-Term Debt Decrease In Worlc:inJ Capital 'IDrAL RESOORCES APPLIED CHANGES IN ~ OF ~ CAPITAL ." INcm'ASE (DECRE'ASE) IN ClJRRENI' ASSETS Cash Accounts Receivable $ (74,770) 63,619 (11, 151) 43,355 1,783 (364,500) 319,362 $ 308,211 INcm'ASE (DECRE'ASE) IN CXJRRENI' LI.ABILITIES Accounts Payable Accrued Expenses BANs Payable ." INrnFASE (DECRE'ASE) IN CXJRRENI' ASSEl'S '!he aCCCllpanyi.rq notes are an integral part of these statem:mts. .. -9- . TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 . NOTE A - Summary of Accountinq 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. The Supervisor serves as the Chief Executive Officer and as 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. . 1. The Reportinq Entity The Town, for financial purposes, includes all of the funds and account groups relevant to the operations of the Town of Wappinger. 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 Accountinq 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 or expenses, as appropriate. 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 six generic fund types and three 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 accou~ted for in another fund. -1()- Summary of Accounting Policies (Cont'd) ., Special Revenue Funds Special Revenue Funds 3re used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust or major capital projects) that are lega1:y restricted to expenditures for specified purposes. Debt Service Fund .. Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt, principal, interest and related costs. Capital Projec~ Funds These funds are used to account for financial resources to be used for the acquisition and construction of major capital facilities (other than those financed by proprietarJ funds) . PROPRIETARY FUND TYPES .. Enterprise Funds ., Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. FIDUCIARY FUND TYPES Trust and Agency Funds .. Trust and Agency funds are 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, Pension Trust and Agency Funds. Pension Trust Funds are accounted for essentially the same as the proprietary fund since capital maintenance is critical. 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. .. -11- Summary of Accounting Policies (Cont'd) IJI/ .", 3. Property, Plant and Equipment and Lonq-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 (exper-ditures 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. .", 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 measurement of results of operations. Special reporting treatments are also applied to governmental fund inventories and prepaid expenses to indicate that they do not represent "available jpendable resources", even though they are a component of net current assets. Such amounts are generally 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. .", -12- Summary of Accounting Policies (Cont'dl " All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabil~ties (whether current or non-current) associa~ed with their activity are included on their balance sheets. Their report fund equity (net total assets) is segregated into contribut~d capital and retained earnings components. ., Depreciation is provided in the enterprise funds in amounts sufficient to relate the cost of the depreciable assets, to operations over their estimated service lives on the straight- line basis. 4. Basis of Accountinq Basis of accounting refers to when revenues and expenditures or expenses 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. Gross receipts and sales taxes are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at the time. 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. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Unbilled utility services receivables of the Water and Wastewater and Sanitation Funds are recorded at year end. ." 5. Budqets The Town employs a formal budgetary accounting as a management tool. During the year a budget was adopted and modified by the To~n Board for the General Fund, Enterprise Fund and the Lighting District of the Special Revenue Fund. Budgetary controls were not established or adopted for the Capital Projects or the other Special Revenue Funds. The Town has not established an encumbrance system to account for obligations resulting from approved commitments. Unused appropriations of the annually budgeted funds lapse at the end of the year. ., -13- Summary of Accounting Policies (Cont'd) .. ., 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 deposits not covered by Federal Deposit Insurance must be collateralized by the banking institutions with investments governed under state sr.atutes. 7. Accumulated Compensated Absences It is the Town's policy to permit employees, not covered by union contracts, to accumulate a limited amount of earned by unused vacation and sick leave, which will be paid to the employee upon separation from the Town's service. The employees may accumulate a maximum of five days of vacation and one hundred forty-four (144) days of sick leave. The employees of the highway department are covered by a union contract with CSEA. The terms of the contract allow for a maximum of five days of vacation and one hundred fifty-four (154) days of sick leave to be accumulated. The expenditures for compensated absences is recorded when disbursed in the applicable fund. At December 31, 1987 the balance in this account was $25,758.00. .. 8. Pension Plans The Town employees are covered by the New York State Employees' Retirement System. The system is noncontributory for all employees, except for employees who joined the New York State Employees' Retirement System after July 26, 1976. These employees contribute 3% of their salary. The Town accrues the outstanding contribution payable as of December 31, 1987 within the applicable fund. The remaining unfunded balance is reflected in the General Long-Term Debt Group of Accounts. .. 9. Property Taxes The Town submits an approved budget to the 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. Lonq-Term Obliqations 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. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. - -14- Summary of Accounting Policies (Cont'd) . 11. Reserve~ of Fund Equity The Town records indicate tha~ a portion of the fund equity is legally segregated for a specific future use. The following details the description and amounts of all reserves used by the Town: BALANCE AT DECEMBER 31 1987 A. General Fund " (1) Reserved for drainage repair and replacement $129,200 (2) Reserved for outside, engineering costs on future subdivision approvals 309,991 $439,191 B. Debt Service . (1) Reserved for principle and interest on bond indebtedness $ 49,129 C. Enterprise Fund (1) Retained earnings, reserved for principle and interest on bond indebtedness $159,587 D. Capital Projects Funds . (1) Reserved for principal and interest on bond indebtedness $ 1,350 E. Fiduciary Fund (1) Reserved for Parklands Deposit Trust $150,522 12. Allowance for Uncollectible Accounts Allowance for uncollectible accounts are not reflected in the enterprise fund. Past due accounts after one year are placed on the county tax roles for collection and reimbursed to the Town as they are put on the tax roles by the county. . .. -15- Summary of Accounting Policies (Cont'd) .. 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. Date in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. .. .. ". ". .. -16- .. NOTE B - OTHER RECEIVABLES Other Receivables at December 31, 1987 consists of the following: GEMRAL FNl'ERPRISE FUND FUND TCfI'AL Franchise Fees S 26,207 S $ 26,207 Zoning Fees 550 550 Planning Board Fees 254 254 Building Pem:its 3,054 3.054 Vater and Sewer Receivables 266,640 266,640 Total Other .. Receiv?bles (Net) S 30,065 $266,640 S296,705 -- NOTE C - STATE AND FEDERAL RECEIVABLES State and Federal Receivables as of December 31, 1987 consist of the following: GEMRAL SPEX::IAL FUND REVENUE TCfI'AL Fines and Forfeitures $ 14,559 $ $ 14,559 State Aid - Revenue Sharing 56,688 56,688 .. Federal Disaster Aid 30,769 30,769 H. U. D. Call1l\m ty Developnent Grants 2,928 2,928 Total State and Federal Receivables $102,016 $ 2,928 $104.944 -- NOTE D - INTERFUND RECEIVABLES AND PAYABLE The following is a summary of amounts due from and due to other funds as of December 31, 1987: OOE FR<J1 IXJE ro NIT OOE FRCM NIT roE ro .. General Fund General E\md - Townwide General Fund - Town-outside General Fund Highway Total Other Funds Total All Funds $113,716 $ 18,663 23,321 10,646 $137 ,037 $ 29,309 $ $ 34,485 10,646 82,159 1, 730 S 10,646 $118,374 $ 95,053 $ Total General E\md 23,321 ( 10,646) $107,728 L_ .. Special Revenue Capital Projects Enterprise Fund $ $ 34,485 71,513 1,730 $107,728 $107,728 $ $10i,728 .. -17- OOI'E E - PROPRIEI'ARY FUNDS PROPERTY, PLMrr AND EtUIPMENl' .. The following is a SUIlIllaIY of the property, plant and equipnent of the Enterprise Funds at December 31, 1987: Utility Plants a~d Equipment Accumulated De~reciation WATER DISTRICfS $ 4,307,864 (1,373,585; 2,934,279 7,277 $ 2,941,556 SEW"rn DISTRIcrs S 9,186,931 (3,684,492) 5,502,439 S 5.502,439 'roI'AL $13,494,795 ( 5,058,077) 8,436,718 7,277 S 8,443,995 Land Total .. NOTE F - GENERAL FIXSD ASSETS ACCOUNT GROUP The following is a summary of changes in the General Fixed Assets Account Group: BAI..Ala BALANCE DEX:EMBER 31, D:EnMBER 31. 1986 ADDmOOS DElEI'IOOS 1987 .. Land $ 741,022 S $ $ 741,022 Buildings 1,618,272 16,901 1,635,173 Improvement ot:!er Than Building:.> 2,612,912 2,612,912 Machinery a'1d Fquipoont 879,928 291,305 1,171,233 Total S 5,852,134 S 308,206 $ 0 $6,160,340 .. .. .. -18- OO'I'E G - SD'~~ BCtIDS PAYABLE AND ~ LCNG-'I'rnJ1 DEm ACCOONT GRCUP . The Serial 30nds Payable and General wng-Tenn Debt as of December 31, 1987 follcws: m:xm OUfSTANDDIG ORIGINAL AT ISSUE TIrI'rnEST ~.a:Um: DEX:UlBER 31, PRCPRIErARY La'lG-TERM FJRPOSE D':'TE RATE _ Ot' ISSUE 1987 FUND DEBT GROOF \Tater $ 66,000 $ 31,200 31,200 $ SeW:2r 104, (0) 48,000 48,000 Ir.:'ainag;;; 1, 125,OOQ. 520,B00 520,800 .. 09--01-71 5.0 1,295,000 6t"O , 000. Water 36,800 19,200 19,200 Sewer 55,200 28,800 28,800 02-15-73 5.0 92,000 48,000 Water 400,000 248,000 248, OOV Sel7er 500,000 302,800 302,800 Drainage 375,000 229.2VO 229,200 03-01-74 5.8 1, 275,000 780,000 .. Water 2,630,000 1,669,000 1,669,000 Sewer 3,005,000 1,904,000 1,904,000 Drainage 400,000 252,000 252,000 05-01-"'7 5.3i5 6,035,000 3,825,000 Water 330,000 197,850 197,850 Sewer 222,000 133,250 133,250 Drainage 239,400 143,900 143,900 05-01-78 6.10 791,400 475,000 Water 148,070 135,800 135,800 Sewer 362,000 332,100 332,100 .. Machinery & F4'ripnent 138,571 90,000 90,000 Town Hall 700,000 642,100 642,100 12-01-85 7.75 1, 348 , 541 1, 200,000 Sewe:- 364,500 364,500 364,500 Town Hall 196,000 196,000 196,000 Re-evaluation 164,000 164,000 164,000 Machinery & Equ.i~nt 220,000 220,000 220 ,000 05-01-87 6.3 944,500 944,5OQ Totals $11,781,541 $7,872,500 S5,~14,5oo $2,458,000 . - -19- NOTE G - Serial Bonds Payable and General Lonq-Term Debt Account Group (Cont'd) .. The annual requirements to ar,ortize bonded debt as of December 31, 1987 follows: YEAR ENDING DEC::MBER 31 198e 1989 1990 1991 1992 Thereafter PRINCIPAL $ 557,500 563,000 563,000 558,000 427,400 5,203,600 $7,872,500 INTEREST S 448,329 401,653 381,374 348,366 318,693 1,783,435 $3,681,850 TOTALS $ 1,005,829 964,653 944,374 906,366 746,093 6,987,035 $11,554,350 .. NOTF H - DUE TO OTHER GOVERNMENTS The Town entered into an agreement with the City of New York to refund taxes of $271,693.18 with interest of $46,212.43. The quarterly payments of $15,895.28 commenced on January 1, 1985 with a final payment on October 1, 1989. .. NOTE I - REPORT CLASSIFICATION Certain previously reported amounts have been reclassified to conform to 1987 report classifications. NOTE J OPERATING 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, 1987 amounted to $28,224. There are no future minimum lease payments due the expiration of all leases at the end of the year. .. NOTE K - CAPITAL LEASE The Town has entered into a lease agreement as lessee for financing the acquisition of equipment for its highway department. This lease agreement qualifies as a capital lease for accounting purposes (bargain purchase) and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of inception. The equipment is recorded in the General Fixed Asset Group of Accounts at $37,800. .. .. -20- NOTE K (Cont'd) . The following is a schedule of the future mini~um lease payme~~s under this lease, and the present value of the net minimum lease payments at December 31,1987: FISCAL YEAR ENDING DECEl1BER 31 1988 1989 1990 1991 GENERAL LONG-TERH DEBT $11,093 11,093 11,093 2,773 36,052 4,729 .. Tot~l Minimum Lease Payments Less: Amount Representing Interest Present Value of Future Minimum Lease Payments $31,323 NOTE L - CONTINGENT LIABILITIES .. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of these cases and lawsuits are not presently determinable. The Town has received or is owed 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 cannot be determined at this time. NOTE M - SUBSEQUENT EVENTS ., The Town of Wappinger has entered into a consent decree with the Department of Environmental Conservation on behalf of the Oakwood Knolls Sewer District, formerly known as the Central Wappinger Improvement Area No.1. This consent decree sets a timetable during which time the Town Board must proceed with finding an alternative means of processing the sewerage generated by those who are connected to the Oakwood Knolls treatment plant. The Town Board has proceeded on this course and has a memorandum of understanding with the Tri-Municipal Sewer Commission for this very purpose. However, should any of the deadlines set forth in the consent decree, the first of which is September 15, 1989, not be met, then a potential fine of $10,000.00 per day may be levied upon Oakwood Knolls Sewer District and it would gradually increase for each and every day of violation following that date. .. On June 5, 1989 the Town Board adopted a resolution creating the Wappingers Park Water District. NOTE N - LEGAL COMPLIANCE The Town expenditures exceeded appropriations in various areas during the year. The Town failed to bid the capital lease for acquisition of highway equipment and exceeded the approved cost of construction of the new Town Hall using the proceeds from the sale of the old Town Hall. . -21- Sedore, O'SuIltG'I1n &'Letterio 7 Certified Public Accountants, Pc. .. . INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE To The Supervisor and Members of the Town Board Town of Wappinger, New York .. We have audited the general purpose financial statements of the Town of Wappinger, New York for the year ended December 31, 1987, and have issued our report thereon dated August 23, 1989. 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 purposed financial statements based on our audit. . We conducted our audit in accordance with generally accepted auditing standards and Government Auditinq 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 in accordance with these standards includes, 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. II' Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the Town of Wappinger taken as a whole. The accompanying schedule of federal assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the accounting procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general p~rPffse. f~?~anAjal s try\nr:n ts taken ;as a whole. ~U- O~ f 1J;({94. c,f-H~ ~f I. C, Wappin~rs Falls, New York I August 23, 1989 ~62 East Main St., P 0. Box 918 Wappingers Falls, NY 12590 914-297-1111 fi291 Main St. Beacon, NY 12508 914-831-0542 -22- A4 East Main St. Pawling, NY 12564 914-855-5400 .. 'lOON OF WAPPINGER, NEW YORK sam OF FEDERAL ASSISTANCE FOR 'lEE YEAR ENDED DECEMBER 31, 1987 .. .. .. See ac:x:x:lt'Pll1Yllq Accountant's Report. .. -23- ., REVENUES EXPENDI'IURES DECEMBER 31, DECEMBER 31, 1987 1987 ., $ 94,450 $ 94,450 8,700 8,700 8,330 8,330 5.585 ., $ 117.065 $ 111.480 ., ., ., -24- .. Sedore, O:5'ul1ivan &->'Letterio Certified Public Accountants, Pc. .. INDEPENDENT AUDITORS REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ISSUED BY THE GAO To The Supervisor and Members of the Town Board Town of Wappinger, New York .. We have audited the financial statements of Town of Wappinger, New York for the year ended December 31, 1987, and have issued our report thereon dated August 23, 1989. We conducted our audit in accordance with generally accepted auditing standards and government Auditinq 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 financial statements are free of material misstatement. . Compliance with laws, regulations, contracts, and grants applicable to Town of Wappinger, New York is the responsibility of Town of Wappinger's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of Town of Wappinger's compliance with certain provisions of laws, regulations, contracts and grants. However, it should be noted that our objective was not to provide and opinion on overall compliance with such provisions. . The results of our test indicate that, with respect to the items tested, Town of Wappinger complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing carne to our attention that caused us to believe that Town of Wappinger had not complied, in all material respects, with those provisions. P62 East. Main St., Po. Box 918 Wappingers Falls, NY 12590 914-297-1111 ft291 Main St. Beacon, NY 12508 914-831-0542 -25- ft14 East Main St. Pawling, NY 12564 914-855-5400 .. - 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;,.. /11_ ") JIlL I {" dJ-u () ~ f/ ~ C~-f.;f# 5, fJ. C. Wappingers Falls, New York August 23, 1989 - ,. ., ,. Sedore, O'Sullivan &/Letterio ., Certified Public Accountants, Pc. -26- Sedore, O'SztllivOl1 eri// Letterio / Certified Public Accountants, Pc. ., .. To The Supervisor and Members of The Town Board Town of Wappinger, New York .. We have audited the general purpose financial statements of Town of Wappinger, New York, for the year ended December 31, 1987, and have issued our report thereon dated August 23, 1989. As part of our audit, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, Government Auditinq Standards, issued by the Comptroller General of the United States, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, "Audits of State and Local Governments." For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: Accountinq Controls .. Cycles of the entities' activity. Treasury or financing. Revenue/receipts. Purchases/disbursements. External financial reporting. Financial statement captions Cash and cash equivalents. Receivables. Inventory. Property and equipment. Payables and accrued liabilities. Debt. Fund balance. II' Accounting applications Billings. Receivables. Purchasing and receiving. Cash disbursements. Payroll. Inventory control. Property and equipment. General ledger. ~62 East Main St., P 0. Box 918 Wappingers Falls, NY 12590 914-297-1111 ft291 Main St. Beacon, NY 12508 914-831-0542 ~4 East Main St. Pawling, NY 12564 914-855-5400 .. -27- .. General Requirements Political activity. Davis-Bacon Act. Civil rights. Cash management. Relocation assistance and real property acquisition. Federal financial reports. . Specific Requirements Types of services allowed or not allowed. Eligibility. Matching, level of effort, or earmarking. Reporting. Cost allocation Monitoring subrecipients. ." The management of Town of Wappinger, New York is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. ." ." Our study included all of the applicable control categories listed in the first paragraph. During the year ended December 31, 1987, the Town of Wappinger, New York had no major federal financial assistance programs and expended 96% of the following nonmajor federal financial assistance programs; Community Development Block Grant Entitlement Program and Federal Revenue Sharing. With respect to internal control systems used in administering these nonmajor federal financial assistance programs, our study and evaluations included considering the types of errors and irregularities that could occur determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. . Certified Public Accountants, Pc. -28- ., With respect to the internal control systems used solely in administering the nonmajor federal financial assistance programs of Town of Wappinger, New York, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions throughout the accounting system. Our study and evaluation of the internal control systems used solely in administering the nonmajor federal financial assistance programs of Town of Wappinger, New York did not extend beyond this preliminary review phase. ., Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the federal assistance programs of Tcwn of Wappinger, New York. Accordingly, we do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of Town of Wappinger, New York. Also, our audit, made in accordance with the standards mentioned in the first paragraph, would not necessarily disclose material weaknesses in the internal control systems used solely in administering nonmajor federal financial assistance programs. .. However, our study and evaluation and our audit disclosed the following condition that we believe result in more than a relatively low risk that errors or irregularities in amounts that would be material to a federal financial assistance program may occur and not be detected within a timely period: The Town failed to monitor the activities of the subrecipients. . These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in (1) our audit of the 1987 general purpose financial statements and (2) our audit and review of the Town's compliance with laws and regulations noncompliance with which we believe could have a material effect of the allowability of program expenditures for each major federal financial assistance program and nonmajor federal financial assistance programs. This report does not affect our reports on the general purpose financial statements and on the Town's compliance with laws and regulations dated. This report is intended solely for the use of management and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by Town of Wappinger, New York, is a matter of public record. !:J~ () rJI~ r ~~ Ie · ., Wappingers Falls, New York August 23, 1989 Sedore, O'S1I/livOl1 & Letterio ., Certified Public Accountants. Pc. -29- . TOWN OF WAPPINGER FINDINGS & RECOMMENDATIONS . A. DEF:CIENCIES IN CONTROL STRUCTURE DESIGN~ FINDING 1: Accounting Systems fails to provide complete and accurate output necessary for management of the Town's finances and budgetary control. EFFECT: . Lack of current accounting information allows the misappropriation of funds, misclassification of expenditures and the over-spending of appropriations and inadequate budgeting. CAUSE: Lack of a formal accounting manual and policies. Inadequate training of personnel. Lack of supervision of accounting staff. . RECOMMENDATION: Evaluate the adequacy of the current accounting system. The establishment of an accounting manual with detailed accounting procedures. Evaluate the competency of employees and levels of ability. Provide training in municipal accounting to staff. FINDING 2: Absence of appropriate segregation of duties consistent with appropriate control objectives. EFFECT: Potential for misappropriation of funds. .. CAUSE: The Comptroller of the Town has both the function of approving bills and their payment. The payment approval is a power of the Supervisor and Board and cannot be delegated to the Comptroller. RECOMMENDATION: Review and analyze the position of the Comptroller to determine what powers legislatively be transferred from the Supervisor. . -30- ., FINDING 3: Absence of appropriate reviews and approvals of transactions accounting entries or systems output. EFFECT: Potential for misappropriation of funds, overpayment of bills, and over expending budget. CAUSE: . The Comptroller of the Town is the only person approving and checking accuracy of invoices. There is no department head approval as to the validity of the expenditures. In the case of the Sewer and Water Districts there is no review by a Town Officer or employee capable of assessing the validity of the additional charges. The Town does not maintain any controls on the receiving of goods and services. . RECOMMENDATION: The Town Board established an Audit Committee to review vouchers prior to approval for payment. All department heads certify that vouchers are correct. Establish receiving controls on goods purchased by the Town. Establish controls over the purchasing in the Water and Sewer Districts. B. INADEQUATE PROVISIONS FOR SAFEGUARDING ASSETS FINDING 4: Fixed Assets detail records are not maintained. . EFFECT: Fixed Assets may be over/under stated. Potential thefts are not detected in a timely manner. CAUSE: A Fixed Asset inventory record system has not been established. Therefore, additions or deletions are not recorded timely. . RECOMMENDATION: An inventory of the Town's assets be taken and recorded. Any change to be reported to the Accounting Department on a current basis. .. -31- . FINDING 5: No control over signature stamps, signature plates and checks. EFFECT: . Potential misappropriation of funds not detected in a timely manner. C~~U_SE: Signature stamps are kept in an unlocked drawer and have been approved for check signing. Signature plates are left unlocked in check signing machine. The checks are left unlocked in the bookkeeping office. Any person with access to the office would have access to the signed checks. . RECOMMENDATION: The signature plates should be removed from machine and placed in the custody of the Supervisor. Check controls tetween Supervisor's office and bookkeeping office be established. Signature stamps should be made invalid for check signing. Checks should be kept under lock and key and logged as part of control between Supervisor and bookkeeping. FINDING 6: Absence of controls over building inspection. CAUSE: . The Building Inspection Department lost records for 1/2 year. RECOMMENDATION: Better controls over records maintained. Numerical control over receipts and issuance of permits and C.O."s. ., .. -32- . FINDING 7: EFFECT: ., CAUSE: Accounts Payable Clerk process vouchers and writes checks. Potential for misappropriation of funds and mis- classification of expenditures. The accounts payable clerk inputs vouchers and also pays check. No check of proper expenditures by person independent of the voucher process. RECOMMENDATION: Accounts Payable Clerk process vouchers. Bookkeeper process checks and verifies with voucher to accuracy. ., FINDING 8: CAUSE: EFFECT: Payroll processing and personnel are not segregated. Payroll clerk processes and maintains personnel records, lack of segregation of duties. Potential payment for salaries and related benefits not authorized or work not performed. RECOMMENDATION: Maintenance of personnel records separated from payroll processing. Personnel verify payroll after process. . FINDING 9: EFFECT: . CAUSE: Employees of the Town paid as sub-contractors and no 1099's filed. Town would be liable for uncollected payroll taxes. The Town would be liable for penalties for not filing 1099's. Personnel policies practiced not in conformity with State and Federal laws. RECOMMENDATION: All compensation of Town employees be reported as payroll. .. -33- .. FINDING 10: Funds maintained in Capital Projects not having activity for years a~d over bonding in Capital Projects. .. EFFECT: Improper classification and valuation of account balances. Improper budgeting for debt liquidation. Unnecessary debt incurred. CAUSE: Improper planning in issuance of debt and lack of established review proceedings of accounts on a periodic basis. . RECOMMENDATION: Review accounts on a p~riodic basis to determine their reasonableness and validity. Proper planning as to debt needed to finance payees. FINDING 11: The Town does not have a written investment policy. EFFECT: The maturity of investments may not be matched against cash needs and the greatest rate of return on investments may not be obtained. .. CAUSE: The Town and Town Board have not established and investment policy. RECOMMENDATION: An investment policy be established and submitted to the Town Board. ., .. -34- . FINDING 12: Our sample of disbursements disclosed the following: 1. Invoices not cancelled 2. Purchase orders submitted with vouchers 3. Vouchers inaccurate and therefore underpaid or overpaid 4. Improper coding of vouchers 5. Approval stamp of comptroller used by account clerk 6. 46 Exceptions in 171 Disbursements Checked . CAUSE: Lack of control procedures for purchasing and payment of invoices. . RECOMMENDATION: Policies be established for approving vouchers only after all supporting documentation is obtained. Implement a purchase order system and maintain it. All supporting documentation be cancelled after payment and returned for all transactions. FINDING 13: The Town has not established policies for monitoring pass through funds from HUD to Wappingers Outreach. . EFFECT: Potential liability to HUD for monies received. CAUSE: No policies established for monitoring use of money by Wappingers Outreach. . RECOMMENDATION: Establish procedures for monitoring activities of Wappingers Outreach using Town pass through funds. Enter into a contract with Wappinger Youth Outreach. .., -35- ., TOWN OF WAPPINGER 20 MIDDLEBUSH ROAD PO. BOX 324 W APPiNGERS FALLS. NY 12590.0324 914-297-2744 IRENE M. PAiNO SlJPERVISqR . August 21, 1989 1987 ANNUAL AUDIT/RESPONSE TO FINDINGS AND RECO:.1~1ENDATIONS General Comment: . The following responses are in reply to Sedore, O'Sullivan & Letterio's Findings and Recommendations contained in the1r 1987 Annual Audit of the Town. Many of the changes in procedures were implemented prior to the completion of the audit. Response to Findings 1: u.) Staff have attended Municipal Fiscal Officers' Training Program and will be encouraged to continue to do so. b.) The Comptroller will prepare a manual for the Town. . Res~nse to Findings 2: a.) The Supervisor is paying all bills. Response to Findings 3; a.) The Town will use a new voucher form requlrlng the Department Head to check the accuracy of the claim submitted. b.) The Supervisor reviews all bills of the Special Districts with the Town Engineer with respect to the validity of the charges. . c.) With respect to all goodsreceived, a Department employee other than the Department Head shall certify to the recei pt of goods by the Town Department as claimed on the payment voucher. ., -36- " TOWN OF WAPPINGER 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS. NY 12590-0324 914-297-2744 IRENE M. PAINO SUPERVISOR " Page 2. August 21, 1989 Response to Findings 4: a.) A fixed asset inventory has been established ex:ept for the Special District. A program to inventory the Special District will be instituted. " Response to Findings 5: a.) Signature stamp is under the control of the Supervisor. All checks are locked away as well as the signature stamp. b.) The check writing machine will be physically moved into the Supervisor1s office. The Town1s depositories will be directed to accept only security coded signature stamps for payment. c.) A system of logging checks given by the Comptroller to the Supervisor for payment will be instituted. " Response to Findings 7: Accounts payable clerk will process voucher and bookkeeper will print checks. " Response to Findings 8: All personnel files will be combined with those maintained by the Supervisor. The Supervisor will authorize all personnel salaries in accordance with the Town Board resolutions. ., -37- . TO\iVN OF WAPPINGER 20 MIDDLE BUSH RO,'\D P.O. BOX 324 W APPINGERS F.ALl S. N V 12590-0324 914-297-2744 iRENE M. PAiNO S:JPERV:S{)R ., Page 3. August 21, 1989 Response to Findings 9: a.) All vendors will be required to furnish Federal 10 numbers before payment will be made. The Town's computerization will allow appropriate 1099's to be generated. ., b.) A review of all those performing services on a regular basis and those who are employees have been placed on payroll. Response to Findings 10: a.) It is the intent of the Town to use these funds to reduce the debt that has been incurred. b.) Adequate planning prior to the issuance of debt securities. Response to Findings 11: . An investment policy will be established and submitted to the Town Board for approval. Response to Findings 12: All recon~endations have been directed by the Supervisor and are in place. Response to Findings 13: The Supervisor has taken steps to have a contract executed by Wappinger Youth Outreach. Furthermore, the Supervisor has requested that they comply with the . Single Audit Act and access to books and records. In the future, the Comptroller will monitor Wappinger Youth Outreach compliance. .. -38- ~ TOW N OFWAPPINGER SUPERVISOR TOWN COUNCIL VINCENT G. FARINA DAVID E. REIS CONSTANCE O. SMITH ROBERT L. VALDATI i ! t I f ! IRENE M. PAINO TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, N.Y. 12590-0324 (914) 297-5771 ELAINE H. SNOWDEN TOWN CLERK September 11, 1989 Nationa1 C1earing House for Sing1e Audit Reports U.S. Bureau of Census Data Preparation Division 1201 East 10th St. Jeffersonvi11e, Indiana 47132 t f t ." Attention: Sing1e Audit C1earing House Gent1emen: Herewith enclosed please find, pursuant to the provisions of Section 35 of the General Municipal Law, the TOWN OF WAPPINGER Financial Report for the Year 1987, prepared by the Independent Public Accounting firm of Sedore, O'Sullivan & Letterio. The enclosed Report was filed in the Office of the Wappinger Town Clerk on August 31, 1989, where it is available as a public record. ~~'-' - ~s truly, . . dOMu~SwlN~ .' es Enc!. Elaine H. Snowden Town Clerk Town of Wappinger TOW N OFWAPPINGER SUPERVISOR ,. TOWN COUNCIL VINCENT G. FARINA DAVID E. REIS CONSTANCE O. SMITH ROBERT L. VALDATI IRENE M. PAINO TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, N.Y. 12590-0324 (914) 297-5771 ELAINE H. SNOWDEN TOWN CLERK September'll, 1989 Joan DaBe1ko, Director Office of Community Planning & Development U.S. Dept. of Housing & Urban Development 26 Federal Plaza New York, N.Y. 10278 ." Dear Ms. DaBe1ko: Herewith enclosed please find, pursuant to the provisions of Section 35 of the General Municipal Law, the TOWN OF WAPPINGER Financial Report for the Year 1987, prepared by the Independent Public Accounting firm of Sedore, O'Sullivan & Letterio. The enclosed Report was filed in the Office of the Wappinger Town Clerk on August 31, 1989, where it is available as a public record. ~~.'- B:~~'Sww~ Elaine H. Snowden Town Clerk Town of Wappinger es Encl. TOWN OF WAPPINGER SUPERVISOR TOWN COUNCIL IRENE M. PAINO VINCENT G. FARINA DAVID E. REIS CONSTANCE O. SMITH ROBERT L. VALDATI ~ TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, N.Y. 12590-0324 (914) 297-5771 ELAINE H. SNOWDEN TOWN CLERK September iI, 1989 Dutchess County Department of Planning Community Development 27 High St. Poughkeepsie, New York 12601 -- Dear Sirs: Herewith enclosed please find, pursuant to the provisions of Section 35 of the General Municipal Law, the TOWN OF WAPPINGER Financial Report for the Year 1987, prepared by the Independent Public Accounting firm of Sedore, O'Sullivan & Letterio. The enclosed Report was filed in the Office of the Wappinger Town Clerk on August 31, 1989, where it is available as a public record. ;- ~.'- ~:~s~ es Encl. Elaine H. Snowden Town Clerk Town of Wappinger TOWN OF WAPPINGER SUPERVISOR TOWN COUNCIL ~ VINCENT G. FARINA DAVID E. REIS CONSTANCE O. SMITH ROBERT L. VALDATI IRENE M. PAINO TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, N.Y. 12590-0324 (914) 297-5771 ELAINE H. SNOWDEN TOWN CLERK September i1, 1989 Mr. Paul Hackett, Dutchess County Comptroller County Office Bldg. 22 Market St. Poughkeepsie, New York "" Dear Mr. Hackett: Herewith enclosed please find, pursuant to the provisions of Section 35 of the General Municipal Law, the TOWN OF WAPPINGER Financial Report for the Year 1987, prepared by the Independent Public Accounting firm of Sedore, O'Sullivan & Letterio. The enclosed Report was filed in the Office of the Wappinger Town Clerk on August 31, 1989, where it is available as a public record. ~~..- ~rs truly, U~ ~\S~~~ .' es Encl. Elaine H. Snowden Town Clerk Town of Wappinger TOWN OF WAPPINGER SUPERVISOR TOWN COUNCIL 7~/WAP~'~< / O~-=-:=-""'/~~ ~~~..,. ..M/..h'....... ..:..~...>:..'....~..'~..~ 0'.' . ..,,~~ .... " .... \ \ I' Co'."' ,....1> O'..'~' e~'/~! ,.~~f~jJ. ~c;.~" J!L/~"li. ~t~ IRENE M. PAINO VINCENT G. FARINA DAVID E. REIS CONSTANCE O. SMITH ROBERT L. VALDATI TOWN CLERK'S OFFICE 20 MIDDLEBUSH ROAD P.O. BOX 324 WAPPINGERS FALLS, N.Y. 12590-0324 (914) 297-5771 ELAINE H. SNOWDEN TOWN CLERK September 11, 1989 State of New York Office of the State Comptroller Division of Municipal Affairs Bureau of Municipal Research & Statistics Governor Alfred E. Smith Office Building Albany, New York 12236 Gentlemen: Herewith enclosed please find, pursuant to the provisions of Section~ 35 of the General Municipal Law, the TOWN OF WAPPINGER Financial Report for the Year 1987, prepared by the Independent Public Accounting firm of Sedore, O'Sullivan & Letterio. The enclosed Report was filed in the Office of the Wappinger Town Clerk on August 31, 1989, where it is available as a public record. Yours truly, es Encl. Elaine H. Snowden Town Clerk Town of Wappinger