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2007 IiII III .. .. .. .. CHELSEA FIRE DISTRICT .. FINANCIAL REPORT .. YEAR ENDED DECEMBER 31,2007 III .. .. .. .. .. .. Prepared By: .. DAchille ct ASSOCIATES III .. .. ... ... D~chille cf ASSOCIATES Municipal Accountants 44 East Market Street Red Hook, NY 12571 845.705.7943 i nfo@dachilleassociates.com www.dachilleassociates.com .. INDEPENDENT AUDITOR'S REPORT - .. Fire District Board of Commissioners of Chelsea Fire District, New York .. .. We have audited the accompanying general purpose financial statements of the Chelsea Fire District as of December 31, 2007 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 a conclusion regarding these general purpose financial statements based upon 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 financial 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 aspects, the financial position of Chelsea Fire District, New York as of December 31, 2007 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 the 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, 2007; this information is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. ... ... /Pc- .. Mark Pozniak .. ... .. .. .. .. ... .. FINANCIAL STATEMENTS .. .. .. .. .. .. ... ... .. .. .. ... .. .. .. Chelsea Fire District Chelsea, New York .. Combined Balance Sheet All Funds .. December 31, 2007 .. ASSETS General Reserve Combined .. Cash $ 73,443 $ $ 73,443 Cash in Reserve 120,159 120,159 TOTAL ASSETS 73.443 120,159 193.602 ... .. LIABILITIES AND FUND BALANCE FUND BALANCE .. Reserved Fund Balance 120,159 120.159 Unreserved Fund Balance 73,444 73,444 TOTAL FUND BALANCE 73,444 120,159 193,603 .. TOTAL LIABILITIES AND FUND BALANCE 73.444 120,159 1 ~3f603 .. .. .. .. III .. .. .. .. lilt lilt Chelsea Fire District Chelsea, New York ... Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund III December 31, 2007 lit REVENUE Actual BudQet Variance Real Property Taxes $ 294,883 $ 294,883 $ .. Interest and Earnings 1,865 1,519 346 Rental of Property 8,880 8,880 Refunds of Prior Year Expenditures 937 628 309 lit Miscellaneous 4,724 4,724 Federal Aid (FEMA) 668 668 TOTAL REVENUE 311,957 305,910 6,047 III EXPENDITURES Current III Publice Safety 156,490 199,400 42,910 Employee Benefits 93,017 100,510 7,493 Debt Service .. Principal Interest TOTAL EXPENDITURES 249,507 299,910 50,403 ... EXCESS/(DEFICIENCY) OF REVENUE OVER 62,450 6,000 56,450 EXPENDITURES .. OTHER FINANCIAL SOURCES/(USES) Interfund Transfers In 10,994 10,994 ... Interfund Transfers Out (29,660) (29,660) TOTAL OTHER FINANCIAL SOURCES/(USES) (18,666) (29,660) 10,994 TOTAL OPERATING SURPLUS/(DEFICIT) $ 43,784 $ (23,660) $ 67,444 ... III BEGINNING FUND BALANCE (12/31/06) Adjustments Operating Surplus/(Deficit) Ending FUND BALANCE (12/31/07) 29,660 29,660 .. 43,784 $ 73,444 (23,660) $ 6,000 ... ... .. ... ... Chelsea Fire District " Chelsea, New York .. Statement of Revenues, Expenditures, and Changes in Fund Balance Reserve Fund .. December 31, 2007 .. REVENUE Actual Interest and Earnings $ 2,689 .. TOTAL REVENUE 2,689 EXPENDITURES .. Publice Safety 42,500 TOTAL EXPENDITURES 42,500 .. EXCESS/(DEFICIENCY) OF REVENUE OVER (39,811 ) EXPENDITURES ... OTHER FINANCIAL SOURCES/(USES) Interfund Transfers In 29,660 .. Interfund Transfers Out (10,994) TOTAL OTHER FINANCIAL SOURCES/(USES) 18,666 TOTAL OPERATING SURPLUS/(DEFICIT) $ (21,145) .. .. BEGINNING FUND BALANCE (12/31/06) Adjustments Operating Surplus/(Deficit) Ending FUND BALANCE (12/31/07) 141,303 1 (21,145) $ 120,159 .. .. .. .. .. .. .. ilIII .. .. .. ilIII ilIII NOTES TO THE FINANCIAL STATEMENTS IiIlIII IiIlIII .. .. ilIII ilIII .. .. .. .. .. .. .. .. .. CHELSEA FIRE DISTRICT CHELSEA, NEW YORK .. NOTES TO THE FINANCIAL STATEMENTS December 31, 2007 ... 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 monies, maintenance of accounting records, and preparation of periodic financial status reports. .. .. iIlII 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 Dutchess County and serves parts of the Towns of Wappinger and Fishkin. The majority of its members are volunteers and the District employs a nominal staff of paid employees which include the District Treasurer and District Secretary. .. 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 is responsible for the District's general management and financial control and designates the bank for District funds, authorizes investments, and approves claims for payments. .. A. The Reporting Entity .. .. The District, for financial purposes, includes all the funds and account groups relevant to the operations of the District. The financial 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 iIlII Measurement Focus and Basis of Accounting .. The accounts of the District are organized and operate on the basis of funds and account groups. A fund is an independent fiscal 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 finance related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and .. II. .. III .. CHELSEA FIRE DISTRICT CHELSEA, NEW YORK .. NOTES TO THE FINANCIAL STATEMENTS (Continued) .. managerial 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 governmental activities. Governmental fund types use current financial resources as a 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". III 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 following 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 financial resources except those required to be accounted for in another fund. .. Reserve Fund - this fund is utilized to account for monies held for special purposes 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: III 1. The District Treasurer presents, as required, the tentative budget to the District Board of Commissioners at a regular or special meeting. .. 2. 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 filed with the funding Towns' Budget Officers. ... .. 11M 111M CHELSEA FIRE DISTRICT CHELSEA, NEW YORK 111M NOTES TO THE FINANCIAL STATEMENTS (Continued) .. D. Assets, Liabilities, and Fund Equity .. 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 the acquisition. ... State statutes govern the investment policies of the District. Permissible investments include obligations of the U.S. Treasury, U.S. agencies, New York State obligations, and repurchase agreements of the U.S. Treasury. .. The District maintains interest and non-interest bearing accounts. .. Receivables and Payables .. The District utilize the Cash Basis of accounting; therefore, there are no reportable Receivables and Payables. Fixed Assets .. .. Fixed Assets used in governmental fund types of the District would normally be recorded in the general Fixed Aasset group at cost or estimated historical cost if purchased or constructed. Donated assets are recorded at their estimated fair market value on 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. .. 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 did not have any long-term debt in the period audited. Detailed Notes on All Fund and Account Groups .. A. Cash and Investments ... The carrying amounts of the District deposits at December 31,2007 were $193,602. The deposits were insured by the Federal Deposit Insurance Corporation for up to $200,000. ... .. .. .. CHELSEA FIRE DISTRICT CHELSEA, NEW YORK ... NOTES TO THE FINANCIAL STATEMENTS (Continued) B. Fixed Assets .. ... The District, during the fiscal year 2007, had no record of Fixed Assets - which should include Land, Buildings, and Machinery and Equipment. The District during the audited fiscal year had no policy for Fixed Assets and the Board of Commissioners had not appointed a Fixed Asset Officer. ... C. Pension Plan .. 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. .. The Chelsea Fire District does participate in a Service Award program for volunteer firefighters. .. .. .. ... .. - .. - - - -