2008
CHELSEA FIRE DISTRICT
For the Year Ending December 31, 2008
Presented to the Board of Commissioners
By
D' Achille & Associates
44 East Market Street
Red Hook, New York 12571
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CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
Annual Financial Report
Table of Contents
Year ended December 31, 2008
Independent Auditor's Report
Balance Sheet - General Fund 1
Statement of Revenue, Expenditures, and Changes in Fund Balance Budget and Actual General Fund 2
Balance Sheet - Reserve Fund 3
Statement of Revenue, Expenditures, and Changes in Fund Balance Actual 4
Notes to the Financial Statements 5-9
D~chille
df ASSOCIATES
Municipal Accountants
44 East Market Street
Red Hook, NY 12571
845.705.7943
in fo@dachilleassociates.com
www.dachilleassociates.com
INDEPENDENT AUDITOR'S REPORT
The Fire District Board of Commissioners of
The Chelsea Fire District, New York
We have audited the accompanying general purpose fmancial statements of the Chelsea Fire District,
New York as of December 31, 2008, and for the year then ended. These general purpose financial
statements are the responsibility of the Chelsea Fire District's Board of Commissioners and the Fire
District's Treasurer. Our responsibility is to express our conclusion of these general purpose financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. These standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall general purpose fmancial statement presentation.
We believe that our audit provides a reasonable basis for our conclusions.
It is our conclusion, that the general purpose financial statements referred to in the first paragraph
present fairly, in all material respects, the fmancial position of the Chelsea Fire District, New York as of
December 31, 2008 and the results of its operations and changes in fund equity of its funds for the year
then ended, in conformity with accounting principles generally accepted in the United States of
America.
Our audit was made for the purpose of forming a conclusion on the general purpose financial statements
taken as a whole. The individual fund financial statements are presented for purpose of analysis. The
supplemental information, such as the Notes to the Financial Statements, are subject to the audit
procedures applied in the audit of the financial statements. It is our conclusion, that for and as of the
year ended December 31, 2008; this information is fairly stated in all material respects in relation to the
general purpose fmancial statements taken as a whole.
Rae D'Achille
October, 2009
CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
BALANCE SHEET - GENERAL FUND
General Fund
Balance Sheet
12/3112008
Cash
$
93,488
TOTAL ASSETS
s
93,488
FUND BALANCE
Fund Balance Undesignated
TOTAL LIABILITIES AND FUND BALANCE
1
$
S
93,488
93,488
CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
Statement of Revenue, Expenditures, and
Changes in Fund Balance
Budget and Actual
General Fund
12/31/08
REVENUE
Real Property Taxes
Uses of Money and Property
Sale of Property
Rental of Real Property
Miscellaneous Local Sources
TOTAL REVENUE
Original Revised
Budget Budget
$ 393,722 $ 393,722 $
$ 1,916 $ 1,916 $
$ - $ - $
$ 8,880 $ 8,880 $
$ 803 $ 803 $
$ 405,321 $ 405,321 $
Variance
Favorable
Actual (Unfavorable)
393,722 $
1,417 $
11 ,226 $
8,880 $
- $
415,245 $
(499)
11 ,226
(803)
9,924
EXPENDITURES
Current:
Public Safety $ 288,650 $ 288,650 $ 213,800 $ 74,850
Employee Benefits $ 111,671 $ 111,671 $ 97,152 $ 14,519
Debt Service
Principal $ - $ - $ - $
Interest $ - $ - $ - $
TOTAL EXPENDITURES $ 400,321 $ 400,321 $ 310,952 $ 89,369
Excess/(Deficiency) of Revenue
Over Expenditures $ 5,000 $ 5,000 $ 104,293 $ 99,293
OTHER FINANCIAL SOURCES/(USES)
Operating Transfers In $ - $ - $ - $
Operating Transfers Out $ 5,000 $ 5,000 $ 84,248 $ (79,248)
TOTAL OTHER FINANCING SOURCES (USES) $ (5,000) $ (5,000) $ (84,248) $ (79,248)
Excess/(Deficiency) of Revenue and Other Sources
Over Expenses and Other Uses $ - $ - $ 20,045 $ 20,045
FUND BALANCE AT BEGINNING OF YEAR $ $ 73,443 $ 73,443
FUND BALANCE AT END OF YEAR $ - $ - $ 93,488 $ 93,488
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CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
BALANCE SHEET-RESERVE FUND
Reserve Fund
Balance Sheet
12/31/2008
ASSETS
Cash
$ 206,196
TOTAL ASSETS
$ 206,196
LIABILITIES AND FUND BALANCE
FUND BALANCE
Fund Balance Reserved
TOTAL LIABILITIES AND FUND BALANCE
$ 206,196
$ 206,196
3
CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
Statement of Revenue, Expenditures, and
Changes in Fund Balance
Actual
Reserve Fund
12/31/08
REVENUE
Uses of Money and Property
TOTAL REVENUE
OTHER FINANCING SOURCES/(USES)
Operating Transfers In
Operating Transfers Out
TOTAL OTHER FINANCING SOURCES/(USES)
Excess(Deficiency) of Revenue & Other
Sources Over Expenses and Other Uses
FUNDBALANCEATBEG~GOFYEAR
FUND llALANCE AT END OF YEAR
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4
Actual
$ 1,789
$ 1,789
$ 84,248
$
$ 84,248
$ 86,037
$ 120,159
$ 206,196
CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2008
Summary of Significant Accounting Policies
The Chelsea Fire District, New York was established and operates in accordance with various
applicable laws of the State of New York. The Board of Commissioners is the legislative body
responsible for the District's general management and financial control. The Treasurer serves as
the Chief Fiscal Officer and is responsible for the custody of moneys, maintenance of accounting
records, and preparation of periodic financial status reports. The Treasurer is also responsible for
preparing and filing, with the State Comptroller, the annual financial report, also known as the
Annual Update Document.
A Fire District is a District corporation of the State with the power to require the levy of taxes on
real property. The Chelsea Fire District is located in the Town of Pleasant Valley in Dutchess
County and while the majority of its members are volunteers, the District employs a nominal
staff of paid firefighters.
The District accounts for its financial activities in the general and reserve funds.
The district is governed by a Board of Fire Commissioners consisting of five elected
commissioners. The Board of Commissioners is responsible for the District's general
management and fmancial control and designates the bank for District funds, sauthorizes
investments and approves claims for payment.
A. The Reporting Entity
The District, for financial purposes, includes all of the funds and account groups relevant to the
operations of the District. The fmancial statements include organizations, functions and activities
that are controlled by or dependent upon the District. Control or dependence is determined on the
basis of budget adoption, taxing authority, funding and election of the respective governing
board.
B. Basis of Presentation
Measurement Focus and Basis of Accounting
The accounts of the District are organized and operation on the basis of funds and account
groups. A fund is an independent fiscal and accounting entity with a self balancing set of
accounts. Fund accounting segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with fmance related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
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CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (continued)
requirements. Account groups are a reporting device to account for certain assets and liabilities
of the governmental funds not recorded directly in these funds.
Governmental Funds
The District's two funds are categorized as governmental funds. Governmental fund types are used to
account for the District's general government activities. Governmental fund types use current [mancial
resources measurement focus.
Operating statements of these funds present increases (i.e., revenue and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current assets.
The reported fund balance (net current asset) is considered a measure of "available expendable
resources."
The District utilizes the cash basis of accounting. Under the cash basis of accounting, revenues and
related assets are recognized when received. Expenditures are recognized when paid.
The foUowing are the District's governmental fund types:
General Fund - This fund is the primary operating fund of the District. It is used to account for
all [mancial resources except those required to be accounted for in another fund.
Reserve Fund - This fund is utilized to account for moneys held for special or capital
expenditures.
C. Budgetary Information
The District's Board of Commissioners follows statutory procedures for establishing the budget for the
General Fund. This procedure is as follows:
The District Treasurer presents, as required, the tentative budget to the District Board of
Commissioners at a regular or special meeting.
The District Board of Commissioners reviews the tentative budget and upon completion, the
tentative budget as modified by the District Board, becomes the budget and is required to be filedywith the Town Budget Officer.
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CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (continued)
D. Assets, Liabilities, and Fund Equity
1. Deposits
The District's cash and cash equivalents are considered to be cash on hand, demand deposits and
short term investments with original maturities of three months or less from the date of
acquisition.
State statutes govern the investment policies of the District. Permissible investments include
obligations of the U.S. Treasury, U.S. agencies, and obligations of New York State and
repurchase agreements of U.S. Treasuries.
The district operates two interest bearing savings accounts and two non interest bearing checking
accounts.
2. Receivables and Payables
The District utilizes the Cash Basis of Accounting; therefore, there are no reportable Receivables
and Payables.
3. Fixed Assets
Fixed Assets used in governmental.fund types of the District would normally be recorded in the
general fixed asset group at cost or estimated historical cost if purchased or constructed. Donated
assets are recorded at their estimated fair market value at the date of donation. No provision for
depreciation is made on general fixed assets. The District does not record its Fixed Assets in the
general fixed asset group of accounts on its books and records.
4. Long Term Liabilities
Long term liabilities expected to be financed from governmental fund revenues are accounted for
in the General Long Term Debt Account Group, rather than in the governmental funds. The
District does not have Long Term Debt.
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CHELSEA FIRE DISTRICT
CHELSEA, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (continued)
Detailed Notes on All Funds and Account Groups
Cash and Investments
The carrying amounts of the District deposits at December 31,2008 were $299,684 which was
insured by Federal Deposit Insurance and the District's Third Party Trust.
Fixed Assets
The District, during fiscal year 2008, did not have comprehensive updated records of Fixed
Assets - which include Land, Buildings and Machinery and Equipment.
Pension Plans
Plan Description
The Chelsea Fire District does not participate in the New York State and Local Employees'
Retirement System and the Public Employees' Group Life Insurance Plan.
Fire District No.1 Service Award Program
The Chelsea Fire District participates in a privately administered Service Award Program for
volunteer firefighters. The award program covers retirees paid a service award, and active and
inactive vested participants.
This award program is funded through the budget process and for the fiscal year ended
December 31, 2008 the amount budgeted for this program was $80,000.
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