2002-11-15
---.
Memorandum
Date:
Gerry Tenvilliger, Comptroller, Town ofwapPingerRSce
Joseph Ruggiero, Supervisor, Town of Wappinger IVED
Linda M. Hannigan, CPA NOV 1 Q 2082
11/15/02 SUPERvt~~_
TOWNOF'NAPP~tt;E
2001 Financial Statements '~ER
To:
cC:
From:
Re:
Per our conversation, enclosed are two copies of the Town's draft financial
statements for your review.
Also enclosed is a letter which updates the representation letter you signed back
in August. We need it because we received the attorney letters so long after the end of
fieldwork. The letter is written under the assumption that there were no significant
events affecting the financial position of the Town, such as new debt, occurring after
August 5. Ifthere were none, please have it printed on Town letterhead and signed by
you and the Supervisor.
After you and the Supervisor have had a chance to review the report, please
contact me so that we can set up an exit conference.
1
November 1, 2002
Sedore & Company, c.P.A.'s, P.C.
62 East Main Street
P.O. Box 918
Wappingers Falls, New York 12590
In connection with your audit of the financial statement of the Town of Wappinger as of
and for December 31,2001 for the purpose of expressing an opinion as to whether the
financial statements present fairly, in all material respects, the financial position of the
Town of Wappinger and the results of its operations in conformity with u.s. generally
accepted accounting principles, you were previously provided with a representation letter
dated August 5, 2002. No information has come to our attention that would cause us to
believe that any of those previous representations should be modified.
To the best of our knowledge and belief, no events have occurred subsequent to August
5,2002 and through the date of this letter that would require adjustments to or disclosure
in the aforementioned financial statements.
Signed:
Signed:
Title:
Title:
T"
.
AS OF AND FOR
.,l~~>f~i.
;~~f~'
~1il
i11~
~~~~f
f i
TOWN OF WAPPINGER, NEW YORK
TABLE OF CONTENTS
DECEMBER 31, 2001
DESCRIPTION PAGElS)
Independent Auditors I Report .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
Independent Auditors' Report on Compliance
and on Internal Control Over Financial Reporting
Based on an Audit of General Purpose Financial
Statements Performed in Accordance With
Government Auditing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-3
Combined Statements of Revenu~
Encumbrances - Budget and
General and Budgeted Special
.y~~tf~
."$'
.;."
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types and
Account Groups . . . . . . . . . . . . . . . . . . . . . . . . .
.. . .. .. . . . .. . . . . . .. .. . .. . . .. .. .
4-7
Combined Statements of Revenues, Expenditures
Changes in Fund Equity - All Governmental
. . . . . . . . . . . . . . . . . . . . . . . . . .. 8
. . .. . .. . . . . . .. . . .. .. . .. .. .. . . . .. .. . .. .. .. .. .. .. .. ..
9-10
Notes to the Financial State
. . . ./. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11-27
ft
..;,~~.
~;JtMATION:
Schedule of Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Town of Wappinger Responses to Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . 29
i
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 fi
Wappinger, New York as of December 31, 2001, ~ fi
foregoing Table of Contents. These general purpose ..
the Town of Wappinger, New York's managemen
on these general purpose financial statements bas
ijil statements of the Town of
year then ended as listed in the
eI1.tI are the responsibility of
..~lmy is to express an opinion
We conducted our audit in accordance with ~y9' . os generally accepted in the United
States of America, and the standards appliiabl . cial audits contained in Government
$'
Auditing Standards issued by the Com~ll e ;. . ral of the United States. Those standards
require that we plan and perfprm ~w it ~., "".n reasonable assurance about whether the
general purpose financial .,~..... en '~~"':~' f . f material misstatement. An audit includes
examining, on a test basis, evf ~,*:.,..~.. the amounts and disclosures in the general purpose
financial statements. An ~ydt . des assessing the accounting principles used and
significant estimates mad~igy man ,.' ent, as well as evaluating the overall general purpose
financial statement prescjta.tion. "Ie believe that our audit provides a reasonable basis for our
. . .~~~~~~ .~:j>:"
opInIon. ,.~m:::;:~" .,<<::'$.,
1~~~!ll~i&~~
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
31,2001, and the results of its operations for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated August
5, 2002 on our consideration of the Town of Wappinger, New York's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grants. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering
the results of our audit.
Wappingers Falls, New York
August 5, 2002
1
.
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AIID1TING STANDARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
ComJ)liance
the Town of Wappinger, New York,
our report thereon dated August
. ", standards generally accepted in the
.1mcial audits contained in Government
of the United States.
We have audited the general purpose financial statem
as of and for the year ended December 31, 200 1, an
5,2002. We conducted our audit in accordan
United States of America and the standards a,: .
Auditing Standards, issued by the Comp ,.:tlet:<t~~n
~
"
"
As part of obtaining reasona .', ',' out whether the Town of Wappinger, New York's
general purpose fmancial s.'f~ment .,}?free of material misstatement, we performed tests of its
compliance with certain R -0 . sions 0 .' aws, regulations, contracts and grants, noncompliance with
,.
which could have a direc In,' al effect on the determination of financial statement amounts.
However, providing an 0 .' ,":"'~' n compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards.
We also noted certain immaterial instances of noncompliance that we have reported to the
management of the Town of Wappinger, New York, in the Schedule of Findings and
Recommendations listed in the Table of Contents.
Internal Control Over Financial Reportina:
In planning and performing our audit, we considered the Town of Wappinger, New York's
internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the general purpose financial statements and not to provide
assurance on the internal control over financial reporting. Our consideration of the internal
2
Ii
control over financial reporting would not necessarily disclose all matters in the internal control
over fmancial reporting that might be material weaknesses.
A material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements in amounts
that would be material in relation to the general purpose financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over financial
reporting and its operation that we consider to be material weaknesses. However, we noted other
matters involving the internal control over financial reporting that we have reported to
management of the Town of Wappinger, New York, as described in the accompanying Schedule
of Findings and Recommendations as listed in the Table of Contents.
This report is intended solely for the information and use of the Supervisor, Town Board,
Management, others within the Town and is not intended to : should not be, used by anyone
other than these specified parties.
Wappingers Falls, New York
August 5, 2002
3
.
TOWN OF WAPPINGER, NEW YORK
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2001
~~9gVERNMENT AJ::,~FUND TYP~~ _.
GENERAL
FUND
SPECIAL
REVENUE
FUND
CAPITAL
PROJECTS
FUND
ASSETS
Cash and cash equivalents
Cash from obligations - restricted
Investments
Receivables:
Charges for services
Other
Due from other funds
Due from other governments
State and federal receivable
Deposits with other governments
Prepaid expenses
Property, building and equipment
Amounts available for the payment of long-term debt
Amounts to be provided for the payment of:
Compensated absence obligations
Judgments and claims
Landfill closure
Long-term debt
$1,111,716 $2,154,433 $2,885,007
1,180,956
427,663 226,793 174,278
595,205
82,695 2,142 721
688,860 4,967 53,700
293,765 36,374
234,689 21,750 27,500
1,748,368
Total Assets
$3,005,290 ~
$6, 106,904
A~
'/
The accompanying Notes to the Financial Statements
are an integral part of this financial statement.
4
a
FIDUCIARY
FUND TYPE ACCOUNT GROUPS
----
TRUST & LONG- GENERAL TOTALS
AGENCY TERM FIXED (MEMORANDUM
FUND DEBT ASSETS ONLY)
---~-- ~--_._--- _.._--^---
$282,019 $- $- $6,433,175
1,180,956
828,734
595,205
85,558
347 747,874
330,139
283,939
1,748,368
7,094
20,444,222 20,444,222
286,127 286,127
134,905 134,905
40,000 40,000
225,000 225,000
23,849,998 23,849,998
-j2~82,366 ----- ~ $20,~,22Z. -- -------
$11.536,030 =_~c~_$~U2J~2J~
5
TOWN OF WAPPINGER, NEW YORK
COMBINED BALANCE SHEET (CONT'D.) -
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER :U, 2001
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable and accrued liabilities
Retainage payable
Bond anticipation notes payable
NYS EFC project financing notes
Due to other funds
Deferred revenues
Other liabilities
Compensated absence obligations
Judgments and claims
Landfill post closure costs
Long-term debt
Total Liabilities
FUND EQUITY
Investments in general fixed assets
Fund balance (deficit):
Reserved for:
Encumbrances
Prepaids
Miscellaneous
Unreserved:
Designated for:
Subsequent years' expenditures
Undesignated
Total Fund Equity
Total Liabilities
and Fund Equity
GOVERNMENTAL FUND TYPES
----~-
GENERAL
FUND
$136,323
SPECIAL
REVENUE
FUND
$42,388
1,210
513
196,163
CAPITAL
PROJECTS
FUND
$451,206
300,793
7,171 ,420
2,568,455
523,282
13,101
_J),028,~}_
1,308,762 959,194
u 986,399 1,806,335 (,!,921,3~31
___ 2,709,646 _ 2,765,J29__~,921,353)
c_ _$2,846,482=~2D5,2~ ==J?,106,2g4c
The accompanying Notes to the Financial Statements
are an integral part of this financial statement.
6
FIDUCIARY
fUND '[YP~ _ A~~OUNT GROWL-
TRUST &
AGENCY
FUND
LONG-
TERM
DEBT
------~-- --------- -
GENERAL
FIXED
ASSETS
TOTALS
(MEMORANDUM
ONLY)
$- $- $-
5,157,125
27,916
113,392
134,905
40,000
225,000
18,979,000
------ -_._-_._--_._-~
_ ~J1Q~_ 24,536,030
~_ _l<lL~~_
____l~L~~
,j,p<1i'>'"
~g~366 ,,3i21c'~36 0
lf~i ~0ttL~~-fV
"::-:)::'$:::-::"'"
4,491
7,094
402,900
2,267,956
_~~87 ,561)
__ ___21J.~9,102_
~~ ~~7 ,221-,,2,94
7
TOWN OF WAPPINGER, NEW YORK
COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQUlTY-
ALL GOVERNMENTAL FUND TYPES
F.oR~H&YEARJlliDEnJlECEMBEIU.1Jllill
REVENUES
Real property taxes
Real property tax items
Non property tax items
Departmental income
Intergovernmental charges
Use of money and property
Licenses and permits
Fines and forfeitures
Sale of property and compensation for loss
Miscellaneous local sources
State aid
Total Revenues
EXPENDITURES
General government support
Public safety
Health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Employee benefits
Debt service
Total Expenditures
Excess (deficiency) of Revenues over Expendit
Other financing sources (uses):
Proceeds of obligations
Proceeds of obligations - refunding debt
BANS redeemed from appropriations
Operating transfers in
Payment to refunded debt escrow agent
Operating transfers (out)
Total other financing sources ( uses)
Excess (deficiency) or revenues and other sources
over (under) expenditures and other uses
Fund Equity, December 31, 2000
Prior Period Adjustment
Fund Equity Restated, December 31, 2000
Fund Equity (Deficit), December 31, 2001
g,1~~_~=g;z92,S29~l$4~nL~532 =njJ1k()1~ ===~~4,880
The accompanying Nutes to the Financial Statements
are an integral part of these financial statements.
8
TOWN OF WAPPINGER, NEW YORK
COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL-
GENERAL AND BUDGETED SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2001
GENERAL FUND
Real property taxes
Real property tax items
Non property tax items
Departmental income
Intergovernmental charges
Use of money and property
Licenses and permits
Fines and forfeitures
Sale of property and compensation for loss
Miscellaneous local sources
State aid
Total revenues
Appropriation of prior year's fund balance
$1,216,883
55,000
750,000
90,000
$1,216,883
65,586
1,077,148
122,869
VARIANCE
FAVORABLE
(UNFAVO~LE)
$0
10,586
327,148
32,869
REVISED
BUDGET
ACTUAL
REVENUES
310,200
85,100
147,000
342,009 31,809
135,158 50,058
134,832 (12,168)
13,352 13,352
2,004 1,004
987,708 418,966
4,097,549 873,624
450,966 ~_ (1,237,885)
EXPENDITURES AND ENCUMBRANCES
1,000
568.742
3,223.925
_ 1,688,8 1
Total revenues and appropriation of
prior year's fund balance
_ (364,~6JJ
General government support
Public safety
Health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Employee benefits
Debt service
.@.."
,4.>7'
Total expenditures and encumbran,~'
i~~~~
1,434,994
272,794
3,440
137,964
3,737
669,338
300,757
356,l36
___J04,355
131.844
23,859
o
13,321
363
80,269
19,934
24,044
70,627
__ ~~_47,7J~ _____3,883.515
)64,~~
Excess of revenues and appropriation
fund balance over expenditures ,.".',
...:-:~::~:. .
665,000
665,000
o
Other financing sources (uses):
Operating transfers (in)
Operating transfers (out)
25,000
(690,000)
25,000
(690,000)
o
o
Total other financing sources (uses)
(66~()00)
__. _----.i~_5,()()O)
o
Excess of revenues, appropriation of prior years' fund balance
and other financing sources over expenditures,
encumbrances and other financing (uses)
_-_-~=c= 1~
___,~$O
$00,
The accompanying Notes to the Financial Statements
are an integral part of these financial statements.
9
BUDGETED SPECIAL REVENUE FUND
VARIANCE
REVISED FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$3,187,911
1,583,841
4,000
472,247
300
103,749
5,352,048
55_8,427_ __
5~~10,475
$3,187,911
37
$0
37
1,684,486
4,375
492,978
100,645
375
20,731
234
o
28,525
1,580,452
261 ,444
H__2 ,607, ~.14
125,650
31,398
. {83,0592
6,629,727_ _____~__102,748
(822,000) (961,493) (139,493)
822,000 1,015,837 193,837
--_._.~- ------~~~~.- ...-
_ _8.~~QOO -- 1,015,837 ___..J.2.1~37 _
__ $0 _n_~_~4.Jj4 ---E111.
10
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2001
NOTE A - Summary of Accountine Policies
The Town of Wappinger, New York ("the Town") was incorporated on May 20, 1875, under the
provisions of the State of New York. The Town operates under a Town Board form of
government, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as
the Chief Executive Officer and as the Chief Fiscal Officer of the Town.
The Town provides the following services: highway maintenance, water, sewer, planning, zoning,
building and safety inspection, lighting, and culture and recreation.
The financial statements of the Town have been prepared in conformity with generally accepted
accounting principles (GAAP), as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting .'for establishing governmental
accounting and financial reporting principles, some . e as follows:
The Town, for financial purposes, include&t
to the operations of the Town of W .
include organizations, functions and .ft
the Town. Control or dependence i t
authority, funding and appoint '" t
e funds and account groups relevant
^ York. The financial statements
, e controlled by or dependent upon
n the basis of budget adoption, taxing
x.{ spective governing board.
.,,#~
1. The Reporting Entity
2. Fund Accounting
~t
The accounts of >:.... "!anized on the basis of funds or account groups, each
of which is con ." ~ separate accounting entity. The operations of each
fund are accolJ.$'tOO for, . viding a separate set of self-balancing accounts, which
are compri .-r<: of .' fund's assets, liabilities, fund equity, revenues and
expenditure' overrutfent resources are allocated to and for individual funds based
upon the pu : '., ;SO er which they are to be spent and the means by which spending
activities are c~ olled. The various funds are grouped, in the financial statements
in this report, into fund types and two account groups, as follows:
GOVERNMENTAL FUND TYPES
The accounting and reporting treatment applied to assets and liabilities associated
with a fund are determined by its measurement focus. All governmental fund
types are accounted for on a spending "financial flow" measurement focus. This
means that only current assets and current liabilities are generally included on
their balance sheets. Their reported fund balance (net current assets) is
considered a measure of "available spendable resources." Governmental fund
11
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTID.)
DECEMBFA 31p 2001
Summary of Accountinl Policies (Continued)
operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of "available
spendable resources" during a period.
General Fund
The General Fund is the general operating fund of the Town. It is used to
account for all financial resources except those required to be accounted for in
another fund.
Special Revenue Fund
Special Revenue Fund is used to
sources (other than special asse
projects) that are legally restrict~
. lal resources to be used for the acquisition
cilities.
Trost and.1t
Trust t#~~genc~:d is used to account for assets held by the Town in a
trustee! acity~# as an agent for individuals, other governments, and/or other
funds. . " . 'l"'lude Expendable Trust and Agency Funds. Expendable Trusts
are acc ed for in essentially the same manner as governmental funds.
Agency funds are custodial in nature (assets equal liabilities), and do not involve
measurement of results of operations.
ACCOUNT GROUPS
Account groups are used to establish accounting control and accountability for
General Fixed Assets and General Long-Term Debt. The two account groups
are not "funds." They are concerned only with the measurement of financial
position. They are not involved with the measurement of the results of
operations.
12
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31,2001
Summary of Accounting Policies (Continued)
General Fixed Assets Account Group
Property, plant and equipment used in governmental fund type operations are
accounted for in the General Fixed Assets Account Group, rather than in
governmental funds. No depreciation has been provided on such property, plant
and equipment.
All property, plant and equipment are valued at historical cost or estimated
historical cost if actual historical cost is not available. Donated property, plant
and equipment are valued at their estimated ~fr value on the date donated.
Interest costs incurred during construction ~hot been capitalized, however.
The Town has adopted the accoun .
general fixed assets (roads, brid
drainage system, lighting systems
value only to the Town.
t c~ltalizing "infrastructure"
.:* rs, streets and sidewalks,
s) that are immovable and of
. nanced from governmental fund types are
g- Term Debt Account Group, not in the
recorded at the par value of the principal
orded for interest payable to maturity.
3. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts, and reported in the financial statements. Basis of accounting relates to the
timing of the measurements made, regardless of the measurement focus applied.
All governmental and expendable trust funds are accounted for using the "modified
accrual basis" of accounting. Their revenues are recognized when they become
measurable and available as net current assets. All major revenues are susceptible to
accrual. Available is generally defined as sixty days subsequent to the end of the fiscal
year.
13
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
Summary of Accountina Policies (Continued)
Expenditures are generally recognized under the "modified accrual basis" of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
accumulated unpaid vacation, sick pay, and other employee amounts which are not
accrued; (2) principal and interest on general long-term debt which is recognized when
due; and (3) expenditures for inventory-type items which are recognized at the time of
purchase.
Expenditures for judgments and settled claims are also recognized when the related
liability is incurred, that is when the judgment has been rendered or settlement has been
reached. Unsettled claims and contingencies are recognized only if it is probable that
an asset has been impaired or a liability has b . " '. urred and the amount of the
impairment or liability can be reasonably :ra .
4. Budgets
The Town employs a formal budgetary a "
the year, a budget was adopted and m.:'
and Special Revenue Fund. Ho\\:"
established at the project level . , co..:
appropriations of the annually~< ge f~.
#
system as required by law. During
Town Board for the General Fund
Capital Projects Fund, budgets are
. .', til the project is completed. Unused
s lapse at the end of the year.
5. Encumbrances
Encumbrance acc ", ~~" which purchase orders, contracts and other
commitments fo~ ~l~ "'~f monies are recorded for budgetary control purposes
to reserve that ~on 0 applicable appropriations, is employed as a control in
preventing ov ~expendi. e of established appropriations. Open encumbrances are
reported as r ation . . f fund balance since they do not constitute expenditures or
liabilities and " nored through budget appropriations in the subsequent year.
6. Budget and Actual Comparison
The budget and actual Comparison for Special Revenue Funds, included in the
Combined Statement of Revenues and Expenditures - Budget and Actual, reflects
budgeted and actual amounts for funds with legally authorized (appropriated) budgets.
Certain Special Revenue Funds have not been included in the comparison because they
do not have legally authorized (appropriated) budgets. The actual activity of these
unbudgeted funds, as follows, is provided in order to reconcile to the total combined
balances of the Special Revenue Funds:
14
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
Summary of Accountin& Policies (Continued)
JANUARY 1,
2001
REVENUES & (EXPENDITURES DECE:M.BER 31,
OTHER SOURCES & OTHER USES) 2001
Total for funds
Included in
Budget Comparison $2,898,096
$6,496,988
$(6,629,727)
$2,765,357
Funds not included
in Budget, Comparison
131
41
172
Total Special
Revenue Funds
$2.898.227
$6.497.029
$(6.629.727)
$2.765.529
7. Cash and Investments
Cash includes amounts in demand and time d ell as, short-term investments.
State statutes and the Town's own writte
policies of the Town. The Town may i
authorized to do business in the State of
of the U. S. Treasury, U.S. Agencies, and
political subdivisions. Deposits not "v
collateralized by the banking institutio
Short-term investments consist of in. ~ urchase agreements. The repurchase
agreements involve purchases b bY' . er .' rtfolio securities concurrently with an
agreement by the broker to se. t ,.' I1)I securities at a later date at a fixed price.
Generally, the effec' f su '"w , 'b1'i is that the Town can invest its excess cash
balances at compe .. te . e Town reports its repurchase agreements at
market value whic st plus accrued interest.
The cash and inv~fhents4~~~;~,.Town at December 31, 2001, are as follows:
i1.f .,~i>; SPECIAL CAPITAL TRUST &
gmmRAL REVENUE PROJECfS AGENCY
~' FUND FUND FUND FUND TOTAL
Non-Interest
Bearing Accounts $800 $800
Interest Bearing
Accounts 1,110,916 2,154,433 2,885,007 282,019 6,432,375
Restricted -
Interest Bearing 1,180,956 1,180,956
Repurchase
Agreements 427.663 226.793 174.278 828.734
TOTALS $1.539.379 $2.381.226 $4.240.241 $282.019 $8.442.865
The restricted cash represents unspent bond proceeds whose use is limited to funding certain
construction projects and related debt service. This restricted cash is more further described
in Note I - Commitments and Contingent Liabilities, Items 3 and 4 - Tri-Municipal Sewer
Plant Expansion.
15
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
Summary of Accountina Policies (Continued)
Deposits and investments at year-end were entirely covered by federal deposit insurance,
or by collateral held by a third party custodian in the Town's name. Disclosures relating
to risk and type of investment as presented are indicative of activity and positions held
during the year.
8. Accumulated Compensated Absences
It is the Town's policy to permit employees of the Highway Department to accumulate
a limited amount of earned but unused vacation and sick leave, which will be paid to
employees upon separation from the Town I s service. Other Town employees may
accumulate a limited amount of unused compensated absences as well. However, for
other Town employees, only unused vacation leave will be paid upon separation from the
Town I s service.
The Town of Wap ,". ~r a the New York State and Local Employees'
Retirement System'. ,'. e Public Employees I Group Life Insurance Plan
(Systems). These are _ ultiple-employer retirement systems. The Systems
provide retirement ..p . ell as death and disability benefits. Obligations of
employers and e~loyees t" < . tribute and benefits to employees are governed by the
New York Stat~iJetiremegJand Social Security Law (NYSRSSL). As set forth in the
NYSRSSL, the 1tt'ofthe State of New York (Comptroller) serves as sole trustee
and administrati. ,. . ~of the Systems. The Comptroller shall adopt and may amend
rules and regulatiob or the administration and transaction of the business of the Systems
and for the custody and control of their funds. The Systems issue a publicly available
financial report that includes financial statements and required supplementary information.
That report may be obtained by writing to the New York State and Local Retirement
Systems, Gov. Alfred E. Smith State Office Building, Albany, NY 12244.
nand. .sick leave is recognized
. bi~of $134,904 of accrued
s b., ';,':: rded in the General Long-
ting tli~own' s commitment to fund
In governmental and fiduciary funds, the co
when payments are made to employees.
vacation and sick leave at December 31, 2
Term Debt Account Group of Accounts, r
such costs from future operations.
9. Pension Plans
Plan Description
Funding Policy
The Systems are noncontributory except for employees who joined the New York State
and Local Employees' Retirement System after July 27, 1976 who contribute 3% of their
salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the
rates expressed as proportions of payroll of members, which shall be used in computing
the contributions required to be made by employers to the pension accumulation fund.
16
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31,2001
SummaI:)' of Accountine Policies (Continued)
The Town of Wappinger is required to contribute at an actuarially determined rate. The
required contributions for the current year and two preceding years were:
ERS
2001 ]I
2000
1999
The Town's contributions made to the Systems were in excess of 100 percent of the
contributions required for each year.
10. Post Employment Benefits
,~"fu.
In addition to providing pension benefits, ~o ,Ii : des jiea1th insurance coverage
and survivor benefits for retired.e!TIployee~l~#ie . ,:,<~:o$s. Substantially al.l of the
Town employees may become eliglble for ,'" ,'~ nefits 1 they reach normal retirement
age while working for the Town. Health ~It' ' and survivors benefits are provided
through an insurance company whose p . on the benefits paid during the
year. The Town recognizes the co benefits by recording its share of
insurance premiums as an expenditut aid. Employees contribute according
to a sliding scale based on years '
For the year of 200 .-
expenditures in the
s on behalf of eleven retirees and recorded as
:;<eciai Revenue Funds.
11. Property Taxes
j' l'
The Town submi, fan appro " . budget to the Dutchess County Commissioner of Finance
by December 5 . the'pious year. The County then establishes the warrant for the
year which is d ~1S<<yable on or about J~uary 1 of each year. The Town collects
the taxes on beh the Town and County wlthout penalty through February 28th and
with penalties and interest through August 31 st. The Town I s portion of the taxes is
recognized and transferred prior to the County's portion. Therefore, the Town receives
its entire tax levy, leaving the unpaid taxes to be collected by the County Commissioner
of Finance.
12. Long-Term Obligations
Long-Term Debt is recognized as a liability of a governmental fund when due, or when
resources have been accumulated in the debt service fund for payment early in the
following year. For other Long-Term Obligations, only that portion expected to be
financed from expendable available financial resources is reported as a fund liability of
a governmental fund. The remaining portion of such obligations is reported in the
General Long-Term Debt Account Group.
17
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
Summary of Accountina Policies (Continued)
13. Insurance
The Town of Wappinger assumes the liability for most risk including, but not limited to,
property damage and personal injury liability. Such risks are covered by the purchase of
commercial insurance. Judgements and claims are recorded when it is probable that an
asset has been impaired or a liability has been incurred and the amount of loss can be
reasonably estimated. Workers compensation coverage is provided through a
retrospective policy, wherein premiums are recorded based on the ultimate cost of the
experience to date of workers in similar occupations.
14. Reserves of Fund Equity
The Town records indicate that portions of the fund equity are segregated for specific
future uses. The following details the description and a. ounts of the reserves used by
the Town: ~ .<
15. Allowance for Un
General Fund
Reserved for Encumbrances
Reserved for Prepaid Expenditures
Reserved for Miscellaneous:
Inspection Fees
$4,491
7,094
402.900
TOTAL
$414,485
unts is not reflected in the Special Revenue Fund.
are placed on the Town tax rolls for collection, and
ounty of Dutchess if the property taxes remain unpaid.
16. Total Col
Total Columns on' e 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.
18
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE B - Other Receivables
Other Receivables at December 31, 2001, consist of the following:
Fines and Fees Receivable
Accrued Interest
TOTALS
GENERAL
FUND
$82,360
~
$82.695
SPECIAL
REVENUE
FUND
$
~
~
CAPITAL
PROJECTS
FUND
$
-12l
$721
NOTE C - Interfund Receivables and Payables
The following is a summary of amounts due from
2001:
General Fund
Capital Projects Fund
Special Grant Fund
Trust & Agency
Water Fund 400
Sewer Fund
Highway
TOTALS
TOTAL
$82,360
...ll2.a
$85.558
er fwfids, as of December 31,
~il
;>"
$513
523,282
21,750
23,724
110,525
156
$747.874
The following is a summ' of changes and adjustments in the General Fixed Assets Account
Group, for the year ended December 31, 2001:
BALANCE -
JANUARY 1,
2001
ADDITIONS
Land
Buildings
Improvements Other
Than Buildings
Machinery ~d
Equipment
$6,549,550
7,191,697
$
97,152
2,892,058
3.481.941
401.601
TOTALS
$20.115.246
$498.753
19
BALANCE-
DECEMBER 31,
ODELETIONS) 2001
$
$6,549,550
7,288,849
2,892,058
(169.777)
3.713.765
$069.777)
$20.444.222
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECRMBER 31, 2001
NOTE E - Bond Anticipation Notes Payable
Bond Anticipation Notes can be used for any purpose for which bonds are authorized, and are
generally accounted for in the Capital Projects Fund, since maturities cannot exceed one year.
Local finance law allows the notes to be renewed, up to five years for capital purposes and up to
the period of probable usefulness for assessable improvements, provided that stipulated annual
reductions of principal are made.
The Bond Anticipation Notes outstanding as of December 31, 2001, are as follows:
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
2001
$160,000
480,000
650,000
135,000
225,000
35.000
1.685.000
PURPOSE
Water
Water
Sewer
Sewer
Landfill
Highway Prop.
Subtotals
ORIGINAL
ISSUE
DATE
07/05/01
07/06/00
09/17/91
07/11/96
07/09/98
07/09/98
Highway Equip. 12/21/00
Highway Equip. 12/21/00
Subtotals
Sewer
Water
Sewer
TOTALS
03/06/01
05/03/01
07/30/01
PURPOSE
Various Purposes
Highway Equipment
Sewer
Water
Sewer
TOTALS
MATURITY
DATE
07/05/02
07/05/02
07/05/02
07/05/02
07/05/02
07/05/02
12/20/02 .if
*~
12/20/02,.ur
ifJr
.r)."V-
.~~
BAL~CE -
..:<<.
., .. ARYl
".W ,
".' 2001
$1,775,000
543,000
$2.318.000
NOTE F - Lon&:- Term Debt
1. Serial Bonds
239,991
363.000
602.991
3.59%
3.12%
2.85%
2,566,420
2,000,000
500.000
$6.240.991
192,000
228.000
420.000
2,566,420
2,000,000
500.000
$7.171.420
BALANCE -
DECEMBER 31,
2001
$1,685,000
420,000
2,566,420
2,000,000
500 .000
$7.171.420
The Town borrows money in order to acquire or construct buildings and public improvements.
This enables the cost of these capital assets to be borne by the present and future taxpayers
receiving the benefit of the capital assets. These long-term liabilities, which are full faith and
credit debt of the Town, are recorded in the General Long-Term Debt Account Group. The
provision to be made in future budgets for capital indebtedness represents the amount, exclusive
of interest, authorized to be collected in future years from taxpayers and others for liquidation of
long-term liabilities.
NEW ISSUES
$160,000
PAYMENTS
$(250,000)
(123,000)
2,566,420
2,000,000
500 .000
$5.226.420
$(373.000)
20
TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE F - Long- Term Debt (Continued)
The Serial Bonds Payable, as of December 31, 2001, are as follows:
AMOUNT
OUTSTANDING
ORIGINAL AT
ISSUE MATURITY INTEREST AMOUNT DECEMBER 31,
PTTRPOSE DATE DATE RATE OF ISSUE 2001
Water $ 36,800 $2,400
Sewer 55.200 J.J2QQ
02/15/73 11/15/03 5.0% 92.000 2JX!Q
Water 32,000
Sewer 39,000
Drainage 22.QOO
03/01/74 03/01/03 5.8% 100.000
Water 339,000
Sewer 294,000
Drainage 42.000
05/01/77 05/01/04 675.000
Water 148,070 36,600
Sewer 362,000 89,700
Town Hall 700.000 173.700
1.210.070 300 .000
Water
Machinery and Equipment 364,500 24,800
207.000 .l(UQQ
6.3% 571 .500 35.000
Sewer - Tri-Municipal 3%-6.65% 6.060.000 3.795.000
Sewer - Tri-Municipa1 11/15/15 4.10-6.90% 8.519.786 6.225.000
Sewer - Tri-Municipal 06/01/95 11/15/15 3.70-5.55% 2.610.054 1.970.000
Water - Fleetwood 07/30/98 10/15/18 3.70-5.15% 510.000 450.000
Purchase of Greystone
Property 10/01/00 10/01/20 4.75-6.50% 2.085.000 2.025.000
Water 452,732 452,732
Sewer 288,876 288,876
Drainage 1.253.392 1.253.392
10/02/01 8/15/11 3.772% 1.995.000 1.995.000
Emergency Services
Building 10/02/01 10/11/14 4.0023 % 1,275.000 1.275.000
TOTALS $32.238.410 18.851.000
21
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE F - Lona- Tenn Debt (Continued)
2. Statutory Installment Bonds:
The Town may borrow an amount in the form of a statutory installment bond not to exceed
$1,000,000 for any purpose which has a period of probable usefulness. These long-term
liabilities are recorded in the General Long-Term Debt account Group.
The Statutory Installment Bonds Payable as of December 31, 2001 are as follows:
PURPOSE
Emergency Services
Building
ISSUE
DATE
MATURITY INTEREST
DATE RATE
,,~
>~."l>
5=hno
m"
~:;
ORIGINAL
AMOUNT
TOTALS
5/4/00
5/4/05
3. N.Y.S. E.F.C. Project Financing Not.
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
2001
$128.000
$128.000
The Town has entered into tern
Environmental Facilities ,rpoIl:' ,
improvements. These ' "
distributed upon presen
finance this debt upon
. :' ,g agreements with the New York State
th41r~:" eeds of which are being used to fund sewer
OVl' e for loans at no interest whose proceeds are
, g expenditures. The Town intends to permanently
g term serial bonds.
At December 31, 200, "~
maturing within one ,~
thereafter.
three issues, one recorded in the Capital Projects Fund,
recorded in the Long Term Debt Account Group, maturing
ORIGINAL
ISSUE
DATE
ORIGINAL
MATURITY INTEREST AMOUNT OF
DATE RATE ISSUE
PURPOSE
Capital Proiects Fund
Tri-Municipal
Sewer Phase IlIA
9/23/99
9/23/02
$2.676.455
Lon~ Term Debt Account Group
Tri-Municipal
Sewer Phase IlIA 10/26/00
10/26/03
2,680,454
Tri-Municipal
Sewer Phase IIA
03/01101
03/01104
2.476,671
$5.157.125
22
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
2001
$2.556.455
2,680,454
2.476.671
$5.157.125
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE F - Lon&- TenD Debt (Continued)
4. In-Substance Defeasance of Debt
Ii
In October 2001, the Town issued $3,270,000 of General Obligation Bonds in two series, Series A
yielding a true interest rate of 3.72% and Series B yielding a true interest rate of 4.00%. The
purpose of these bonds was to advance refund two issues, 1991 Public Improvement debt, with an
outstanding balance of $1,870,000 and bearing interest at 6.5%; and 1994 Public Improvement debt,
with an outstanding balance of $1,155,000 and bearing interest at 6.00%. The net proceeds of
$3,190,941, after payment of $92, 160 of underwriting, insurance and other costs of issuance, and
net of an original issue premium of $13,101, was used to purchase U.S. government securities.
Those securities were deposited in an irrevocable trust with an escrow agent to provide for future
debt service payments on both the 1991 and the 1994 Series bonds. The refunding resulted in a net
decrease in debt service payments of $250,540, representing an economic (present value) gain of
$213,899 As a result, the 1991 and 1994 Series bonds are considered to be in-substance defeased,
and the liability for those bonds has been removed from the General Long Term Debt account group.
As of December 31,2001 $3,025,000 in bonds considered defeased were outstanding.
5. Chanl{es
. :#mber 31, 2001, are summarized
The changes in the Town's indebtedness during the year end
as follows:
BALANCE -
DECEMBER 31,2001
$18,851,000
BALANCE -
JANUARY 1, 2001
Serial Bonds - Note F $20,104,000
ADDITIONS
$3,270,000
Statutory Installment
Bonds
128,000
160,000
N.Y.S.E.F.C. Project
Financing Notes
5,157,125
Judgements and Claims -
Note 1.1
40 ,000
Landfill Post-Closure Costs -
Note J.l
225,000
(25,000)
Compensated
Absences - Note A.8
TOTALS
126.667
$24.526.792
(181.265)
$(4.761.265)
307.932
$23.542.386
$5.746.671
6. Debt Service ReqJIirements
The annual requirements to amortize bonded debt and EFC financing notes, as of December 31,
2001, are as follows:
YEAR ENDING
DECEMBER 31,
2002
2003
2004
2005
2006
2007-2011
2012-2016
2017-2021
TOTAL
TOTAL
$2,667,030
7,711,493
2,445,419
2,161,749
2,017,250
9,446,976
4,668,483
770.293
$31.888.693
INTEREST
$1,047,030
969,368
883,419
804,749
732,250
2,546,976
678,483
90.293
$7.752.568
PRINCIPAL
$1,620,000
6,742,125
1,562,000
1,357,000
1,285,000
6,900,000
3,990,000
680.000
$24.136.125
23
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE G - 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, 2001 amounted to $31,209. At December 31, 2001, the
approximate annual operating lease commitments, subject to appropriation of funds, were as
follows:
.#:.....
,{f
1. La wsuits fl
,&
:::~:::::
The Town is a deti'~l~? t J~" . ous lawsuits and tax certiorari cases. The outcome of the
majority of these '., ". 'ttawsuits, as determined by the Town Attorney, should not result
in material unfavorable settlements. Any return of property taxes made as a result of the
settlement of a tax certiorari case is funded by an increase in the property taxes collected in
the year subsequent to payment. The Town has recorded an estimated liability amounting to
$40,000 in the Long Term Debt account group, representing possible future settlements on
tax certiorari cases.
OPERATING
LEASES
$30,540
9,170
...L.6.lil
YEAR ENDING
DECEMBER 31,
2002
2003
2004
TOTAL MINIMUM LEASE PAYMENTS
NOTE H - Deficit Fund Balances
Certain Capital Projects had fund equity deficits at
arose through the funding of expenditures by iss. .
paid, revenue will be recognized and the de(i .:
capital projects with accumulated fund equi
five capital projects with accumulated fun
were funded by loans from other fun
t.t ~e y~. Certain of those deficits
n:' : :ltclpatiOn notes. As these notes are
,wminated. There were six such
.g $5,588,037. In addition, there were
its totaling $350,890, whose expenditures
24
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE I - Commitments and Contin&ent Liabilities (Continued)
2. Grants
The Town has received amounts from grantor agencies, principally the Department of
Housing and Urban Development. Any allowed claims, including amounts already collected,
may constitute a liability of the applicable funds. The amount, if any, of expenditures which
may be disallowed by the grantor agency cannot be determined at this time.
3. Tri-Municlpal Sewer Plant Expansion
An initial consent judgement was executed between the Town and the New York State
Department of Environmental Conservation dated April ~18, 1988, regarding alleged
environmental violations. Due to numerous technical 'ff}clllties, the Town of Wappinger
was unable to meet the threshold dates contained.lath~( '" nt judgement, and an amended
consent judgement was re-negotiated and appr "..,:"~\",.. ~>>i.. . ""
~".. '.':0
This amended consent judgement required th to co liuct a sewer line to the Tri-
Municipal Sewer Treatment Plant, plus a on ,~ ~ allon expansion of said plant. The
Town, however, does not own the plant nor,,; ". ., it }voting rights on the Commission 's
governing board. The plant is owned and.#' ....~: . e Tri-Municipal Sewer Commission,
made up of representatives of the ToJii 0,91: eepsie and the Village of Wappingers
Falls. Construction is on-going; hO>f.~e~ifus aitesult of additional difficulties between the
Tri-Municipal Sewer Commission. 5~ e,~m~ent of Environmental Cons~rvation, delays
have occurred and a . :tYJgement was agreed to, extendmg the date of
completion to July 1, I ". . was able to begin using the expanded capacity as of
July 1, 1997, however, ce". 'on related costs continue to be incurred. In 2001,
the construction project ;", ed with the Department and closed.
t,4" " ",..'
Funding for the proje(t has beeJ}1: fovided by two authorizations, for a total estimated project
cost of $19,630,054 ougij.d5ecember 31,2001, $17,189,840 in bonds have been issued
through the Environ :lFiicility Corporation (EFC), and $2,060,414 in Bond Anticipation
Notes have been issu . ,"
Total project costs incurred through December 31, 2001, amounted to $18,393,645. Under
the terms of the agreements with EFC, serial bond proceeds are required to be deposited into
a Construction Fund Account, be invested in U.S. Treasury securities until drawn upon, and
be subject to regulatory approvals before being drawn upon. The unspent balance in the
Construction Fund Account has been transferred to a debt service fund held by EFC's escrow
agent and is periodically being applied toward the Town's principal and interest payments.
The balance available to the Town as of December 31, 2001 amounted to $690,642, and is
included in Cash from obligations - restricted.
4. Tri Municipal Sewer Plant Expansion - Phase IlIA
In May 1996, the Town entered into a contract with the Tri-Municipal Sewer Commission
with regard to the further expansion of the Commission's sewage treatment facility, from 2.4
million gallon per day capacity to 3.4 million gallon per day capacity, the costs of which will
be funded by the Town. In January 1999, the Town Board authorized the Phase 3A Sewer
Improvement Project based on the May 1998 map, plan and report.
25
~ .
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE I - Commitments and Contingent Liabilities (Continued)
The Town estimated construction and related project costs to be $10,400,000 which was
increased to $10,900,000 in Apri12oo1. The Town has incurred $8,818,213 in professional
fees and project costs to date. The Town has issued bond anticipation notes through the
Environmental Facilities Corporation totaling $10,900,000 to fund present and future project
costs. Unspent bond proceeds are included in Cash from obligations - restricted, $458,457,
representing cash held by the Environmental Facilities Corporation and included in Deposits
with other governments, $1,748,368, representing cash held by the Tri-Municipal Sewer
Commission for project expenditures to be paid by that entity.
5. Central Wappinger Water Improvement Area 99-2R
In February 2001, the Town Board adopted a Bond Resolution authorizing the issuance of
$8,590,000 in serial bonds to pay the costs of water improvement. On March 2, 2001, the
Town Board issued $2,000,000 in bond anticipation notl?,s to. . Y part of the costs of aforesaid
project.
The Town is planning to apply for long-term fi
State Environmental Facilities Corporation. .
The costs incurred on the project amounted
,?~~
\~;y
'.fl)ject through the New York
>
as of December 31, 200 1.
6. Town Recreation Center
1?J&1 a bond resolution authorizing the issuance
'<'Me Town Recreation Center.
7.
Authorized Debt ~,*.
"
.<.. "~lt'
As of December 31, 2Qdi' the. ::2. has authorized, but not issued, the following new debt:
<,~ A h ~,....:.,~$ . A h . d U' d
At ut qfiZatIon ut onze DlSSue
Purpose ;lJ~' ,,;tJ}ate Amount Amount
Refunding Bonds ~ 'l~'<}" 02/01199 $4,700,000 $1,430,000
Central Wappinger\ '.. 02/12/01 $8,590,000 $6,590,000
Town Recreation Center 09/10/01 $2,496,000 $2,496,000
NOTE .T - Municipal Landfills
1. Castle Point Landrill
The Town has voluntarily entered into a Consent Order with the New York State Department
of Environmental Conservation to close, cap and monitor the landfill at Castle Point. The
closing and capping project was completed in 1999. The costs of monitoring, which could be
required for up to thirty years after closure, are currently estimated to amount to $225,000.
The Town has recorded this liability in the Long Term Debt account group. The costs of both
closure and postclosure monitoring are ordinarily recognized over the expected useful life of
the landfill. However, since the landfill has stopped accepting refuse and is now closed, any
additional costs over the estimate is being recognized as incurred. The Town incurred $8,600
in monitoring costs during 2001. The future costs may be higher due to inflation, changes in
technology or subsequent changes in regulations.
26
.., '.
TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE .T - Municipal Lande-ills (Continued)
The Town has been awarded $274,722 in grant funds through the New York State Department
of Environmental Conservation LandfIll Closure Assistance Program, based on eligible
construction expenditures. To date the Town has received 90% of these grant monies from
the State. The remaining 10% retainage will be released to the Town upon final
N.Y.S.D.E.C. approval.
2. Poughkeepsie-Wappin~ers-LaGran&e .Toint Landrill
The Town has shared in the monitoring costs of a closed landfill, the Poughkeepsie-
Wappinger-LaGrange Joint Landfill. This joint activity includes the City and Town of
Poughkeepsie, the Village of Wappingers Falls and the Town of LaGrange, as well as the
Town of Wappinger. All costs associated with monitoring are recognized as incurred. No
assessment of the extent and cost of future monitoring costs as been made. Any such costs
will be shared equally among the five municipalities. "own's share of monitoring costs,
for the year ended December 31, 2001, ama t ,400. ,~Financial statements are
available from the Joint Landfill's Board. ,~~l
. '*'*
...~~~J":$.>
Summarized unaudited financial information i ows:
Total Assets
Total Liabilities
Total Fund Balance
. . t to comply with implementation of GASB 33, which
provides for using the acero,,: e accounting for nonexchange transaction revenues, i.e.,
mortgage taxes and sales ~~' The ef'::', of this a~jus~ment was to increase the Fund Balance as of
January 1, 2001 by $225, :"6 and d~ease operating mcome for 2001 by the same amount.
.. ..:J~>'
The Town has issued the following new debt:
ISSUE MATURITY
~ PURPOSE DATE DATE RATE AMOUNT
Bond Purchase of
Anticipation Highway
Note Equipment 02/14/02 12/20/02 1.89% $250.000
Bond Water
Anticiation Improvements
Note 05/02/02 05/02/03 1.93% "'$5.150.000
"'New borrowing amounted to $3,250,000.
27
. ,{. .
TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31, 2001
NOTE M - New R~ortin& Standard
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34 "Basic
Financial Statements and Management's Discussion and Analysis for State and Local Governments."
This Statement establishes new financial reporting requirements for state and local governments
throughout the United States. When fully implemented, it will require new information and
restructure much of the information that governments have presented in the past. Comparability with
reports issued in all prior years will be affected. The Town is required to implement this standard
for the year ending December 31, 2003. The Town has not yet determined the full impact that
adoption of GASB Statement 34 will have on the financial statements.
28
.; 1 l.. .
OTHER SUPPT.EMENTAL INFORMATION
.'~lt
..Air
l"i#?"
. " ,.
TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENnED DECEMBER 31, 2001
OTRERMATTERS:
PRIOR YEAR FINllTNGS - CONTINUING:
Findin& 1 - Fscrow Funds
Effect:
Payments have been made in excess of escrow amounts collected resulting in excess
payments to individual project owners/developers.
The Town collects escrow funds to ensure that costs incurred by the Town,
while projects or subdivisions are being considered by the Planning Board,
are borne by the applicants. The Town maintains records for each
project/applicant so that balances can . monitored; however, in some
cases the disbursements exceeded row collected.
4<4}.>
Unanticipated liabilities c<~ox b@1" Y the Town for which no
revenues/funds had been p .1;
Findin&:
Cause:
Recommendation:
We note that the Town 4, e significant improvements in the
accounting for and the" "ili escrow receipts and disbursements.
We continue to not~ . .' lficant debit balances remain. As of
December 31, 2OQp'fu3 applicant debit balances amounting to
$71,000. We r~ d" t the Town continue to review the projects
involved, dete :~,. I!t..",.: ,~":. hility of these amounts and make adjustments
as n ..", 'lmw.:;;<
.:**"P
If'{;'
Finding 2 - Fixed Assets ~,.
fi!l
Th T ":'. ~~?-
e 0 ..:~.
its recor
Finding:
~~
~'"
it
.,::1
ngv"erified the existence of its fixed assets with amounts carried on
'm..W,ox th
'. .'. ;.:: ng e year.
Cause:
The Town has not taken a physical inventory of its fixed assets since 1993.
The Town's fixed assets could be overstated.
Effect:
Recommendation:
The Town should periodically perform a physical inventory of its fixed
assets, whether by hiring an outside consultant or requesting employees to
compare updated lists to items on hand. Periodic inventories enable the
Town to maintain accountability by those employees using Town assets,
and to prevent loss. Finally, the Town will be able to use the fixed asset
inventory to assist in its compliance with GASB #34 by the year 2003 as
required.
29