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Annual General-Purpose Financial
Statements TOWN OF EXETER, RHODE ISLAND Fiscal Year Ended June 30, 2003 |
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Table of Contents
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INDEPENDENT AUDITORS= REPORT..................................................................................................................................... 1
GENERAL-PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet ‑ All Fund Types and
Account Groups................................................................................... 3
Combined Statements of Revenues, Expenditures and
Changes in Fund Balances ‑
All
Governmental Fund Types and Expendable Trust Funds.................................................................................. 4
Statement of Revenues and Expenditures - Budget (GAAP
Basis) and Actual - General Fund.................................
5
Combined Statements of Revenues, Expenditures and
Changes in Fund Balances ‑
Nonexpendable Trust Funds.......................................................................................................................................... 6
Combined Statement of Cash Flows - Nonexpendable Trust Funds............................................................................... 7
Notes to Financial Statements................................................................................................................................................ 8
COMBINING STATEMENTS, ACCOUNT GROUPS, AND SUPPLEMENTAL
SCHEDULES
Special Revenue Funds
Combining Balance Sheet...................................................................................................................................................... 17
Combining Statements of Revenues, Expenditures, and
Changes in Fund Balances.................................................. 18
Capital Projects Fund
Combining Balance Sheet...................................................................................................................................................... 19
Combining Statements of Revenues, Expenditures and
Changes in Fund Balances................................................... 20
Fiduciary Trust Funds
Combining Balance Sheet...................................................................................................................................................... 21
Combining Statements of Revenues, Expenditures, and
Changes
in Fund Balances - Expendable Trust Funds.............................................................................................................. 22
Combining Statements of Revenues, Expenditures and
Changes
in Fund Balances -
Nonexpendable Trust Funds..................................................................................................... 23
Schedule of Cash Receipts and Disbursements - Agency Funds................................................................................. 24
Account Group
Statement of General Long-Term Debt................................................................................................................................ 25
Schedule of Changes in General Long-Term Debt............................................................................................................ 26
Supplemental Schedules
Schedule of Revenues and Expenditures - Budget to
Actual - General Fund............................................................... 27
Schedule of Property Taxes Receivable.............................................................................................................................. 30
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.................................................................................................................... 31
INDEPENDENT AUDITORS' REPORT
The Honorable Members of the Town Council
Exeter, Rhode Island
We have audited the accompanying general-purpose
financial statements of the Town of Exeter, Rhode Island as of and for the year
ended June 30, 2003 as listed in the table of contents. These general-purpose financial statements
are the responsibility of the Town=s
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 auditing
standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing 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 includes examining, on a test basis, evidence supporting the
amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall general-purpose financial statement
presentation. We believe that our audit
provides a reasonable basis for our opinion.
The general-purpose financial statements referred to
above do not include financial data of the Exeter Fire Company No. 1, Exeter
Fire Company No. 2, Exeter Emergency Dispatch, nor the Exeter Rescue Corps,
which should be included as component units in order to conform with accounting
principles generally accepted in the United States of America. The amounts that should be reported for
these component units have not been determined by management.
Additionally, the general-purpose financial statements
referred to above do not include a general fixed asset account group for the
primary government which should be included in order to conform with accounting
principles generally accepted in the United States of America. The amount that should be recorded in the
general fixed assets account group is not known.
In our opinion, based on our audit, except for the
effects on the financial statements by the omissions described in the preceding
paragraphs, the general-purpose financial statements present fairly, in all
material respects, the financial position of the Town of Exeter, Rhode Island
as of June 30, 2003, and the results of its operations and cash flows of its
nonexpendable trust funds 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 a report dated November 7, 2003 on our consideration of
Town of Exeter's internal control over financial reporting.
Our audit was performed for the purpose of forming an
opinion on the general-purpose financial statements taken as a whole. The information on combining statements,
account groups, and supplemental schedules listed in the table of contents are
presented for purposes of additional analysis and are not a required part of the
general-purpose financial statements. Such
information has been subjected to the auditing procedures applied in the audit
of the general-purpose financial statements and, in our opinion, except for the
effects of the omissions described in the third and fourth paragraphs above,
such information is fairly presented in all material respects in relation to
the general-purpose financial statements taken as a whole.
November 7, 2003
TOWN
OF EXETER, RHODE ISLAND
COMBINED
BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June
30, 2003
Fiduciary Account
Governmental Fund Types Fund Groups
General Totals
Special Capital Trust and Long-Term (Memorandum
General Revenue Projects
Agency Debt Only)
ASSETS
Cash and cash equivalents $ 1,044,861 $
110,238 $ C $ 85,983 $ C $
1,241,082
Accounts receivable:
Property taxes 407,574 C C C C 407,574
Tax title property 14,469 C C C C 14,469
Other 25,000 C C C C 25,000
Investments
C C C 985,394 C 985,394
Due from other funds 5,000 30,200 338,964 37,325 C 411,489
Amount to be provided for the
payment of long-term debt C C C C 1,198,413 1,198,413
TOTAL
ASSETS $ 1,496,904 $
140,438 $ 338,964 $ 1,108,702 $ 1,198,413 $ 4,283,421
LIABILITIES AND
FUND BALANCES
LIABILITIES
Accounts payable $ 74,398 $ C $ C $ C $ C $ 74,398
Due to other funds 406,164 5,000 C 325 C 411,489
Deposits held in custody
for others C C C 76,278 C 76,278
Accrued compensated
absences 22,475 C C C 19,413 41,888
Deferred revenue 346,575 C C C C 346,575
Landfill postclosure
care costs C C C C 900,000 900,000
Land acquisition costs C C C C 175,000 175,000
Capital lease C C C C 104,000 104,000
TOTAL LIABILITIES 849,612 5,000 C 76,603 1,198,413 2,129,628
FUND BALANCES
Reserved 400,000 135,438 338,964 1,032,099 C 1,906,501
Unreserved
Undesignated 247,292 C C C C 247,292
TOTAL FUND
BALANCES 647,292 135,438
338,964 1,032,099 C 2,153,793
TOTAL
LIABILITIES AND
FUND
BALANCES $ 1,496,904 $
140,438 $ 338,964 $ 1,108,702 $ 1,198,413 $ 4,283,421
See accompanying notes.
TOWN
OF EXETER, RHODE ISLAND
COMBINED
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year Ended June 30, 2003
Fiduciary
Governmental Fund Types Fund
Expendable Totals
Special Capital Trust (Memorandum
General Revenue Projects
Funds Only)
REVENUES
Property taxes $
8,282,086 $ C $ C $ C $ 8,282,086
State and federal aid and grants 1,257,996 54,681 85,480 C 1,398,167
Departmental revenues 132,842 C C C 132,842
Licenses, fees and permits 150,967 C C C 150,967
Fines and interest on late payments 76,446 C C C 76,446
Interest and other investment income 23,659 C C 24,444 48,103
Other revenues 6,180 78,721
54,359 2,503
141,763
TOTAL
REVENUES 9,930,176 133,402 139,849 26,947 10,230,374
EXPENDITURES
Salaries and wages 650,549 C C C 650,549
Public works 381,666 356,075 C C 737,741
Public safety 591,118 C C C 591,118
Public health and welfare 19,952 C C C 19,952
Community services 31,767 C C C 31,767
General government 511,603 5,065 C C 516,668
Education 7,062,696 C C C 7,062,696
Other 2,488 134,006
240,514 25,195
402,203
TOTAL
EXPENDITURES 9,251,839
495,146 240,514 25,195 10,012,694
EXCESS
OF REVENUES
OVER (UNDER)
EXPENDITURES 678,337 (361,744) (100,665) 1,752 217,680
OTHER FINANCING SOURCES (USES)
Operating transfers in C 35,000 77,492 C 112,492
Operating transfers out (112,492) C C C (112,492)
EXCESS OF
REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND
OTHER USES 565,845 (326,744) (23,173) 1,752 217,680
Fund balances - July 1, 2002 81,447 462,182
362,137 890,857 1,796,623
FUND BALANCES -
JUNE 30, 2003 $ 647,292 $ 135,438 $ 338,964 $
892,609 $ 2,014,303
See accompanying notes.
TOWN OF EXETER, RHODE ISLAND
STATEMENT OF REVENUES AND EXPENDITURES B
BUDGET (GAAP BASIS) AND ACTUAL - GENERAL FUND
Year Ended June 30, 2003
Favorable
Budget
Actual (Unfavorable)
REVENUES
Property taxes current year $
8,315,958 $ 8,094,884 $ (221,074)
Property taxes prior years C 187,202 187,202
State aid 854,978 1,257,996 403,018
Departmental revenues 82,000 132,842 50,842
Transfer station fees 23,350 26,926 3,576
License and permits 105,500 124,041 18,541
Fines and interest on late payments 45,000 76,446 31,446
Interest and other investment income 20,000 23,659 3,659
Nonbudgeted revenue C 6,180
6,180
TOTAL
REVENUES 9,446,786 9,930,176 483,390
EXPENDITURES
Salaries and wages 660,962 650,549 10,413
Public works 390,314 381,666 8,648
Public safety 591,118 591,118 C
Public health and welfare 20,600 19,952 648
Community services 30,950 31,767 (817)
General government 572,654 511,603 61,051
Education 7,062,696 7,062,696 C
Nonbudgeted expenditures C 2,488
(2,488)
TOTAL
EXPENDITURES 9,329,294
9,251,839 77,455
EXCESS
OF REVENUES
OVER
EXPENDITURES 117,492 678,337 560,845
Other financing sources (uses)
Transfers to other funds (117,492)
(112,492) 5,000
EXCESS
OF REVENUES OVER
EXPENDITURES
AND OTHER USES $
C $ 565,845 $ 565,845
See accompanying notes.
TOWN
OF EXETER, RHODE ISLAND
COMBINED
STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES
IN
FUND BALANCES ‑ NONEXPENDABLE TRUST FUNDS
Year
Ended June 30, 2003
REVENUES
Interest income $ 68
Other investment income 2,744
TOTAL
REVENUES 2,812
EXPENDITURES
Investment expenses 4,126
Contributions and expenses 2,150
TOTAL
EXPENDITURES 6,276
NET
LOSS (3,464)
Fund balances at July 1, 2002 142,954
FUND
BALANCES - JUNE 30, 2003 $
139,490
See accompanying notes.
TOWN
OF EXETER, RHODE ISLAND
COMBINED
STATEMENT OF CASH FLOWS ‑ NONEXPENDABLE TRUST FUNDS
Year
Ended June 30, 2003
OPERATING ACTIVITIES
Investment income $ 2,812
Cash payments for goods and services (6,276)
NET
CASH USED IN
OPERATING
ACTIVITIES (3,464)
INVESTING ACTIVITIES
Proceeds on sale of investments 29,544
NET
INCREASE IN CASH
AND
CASH EQUIVALENTS 26,080
CASH AND CASH EQUIVALENTS AT JULY 1, 2002 11,097
CASH
AND CASH EQUIVALENTS
AT
JUNE 30, 2003 $ 37,177
OTHER INFORMATION
Net loss equals net cash used in operating activities $ (3,464)
See accompanying notes.
TOWN
OF EXETER, RHODE ISLAND
NOTES
TO FINANCIAL STATEMENTS
June
30, 2003
NOTE A‑‑SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The Town of Exeter, Rhode Island (Town) was founded in
1742. The Town is governed largely
under the 1742 Legislative Charter. In
some matters, including the issuance of short and long-term debt, the Town is
governed by the general laws of the State of Rhode Island. The Town operates under a Town Council form
of government. The Town provides
various services including education, libraries, public fire and rescue
service, public works, social services, and general administrative services.
The financial statements of the Town have been
prepared in conformity with accounting principles generally accepted in the
United States of America (GAAP) as applicable to governmental units. The accounting methods and procedures
adopted by the Town conform to GAAP as applied to governmental entities except
for the omission of the primary government=s
General Fixed Assets Account Group and certain component unit=s financial statements. The more significant of the Town=s
accounting policies are described below.
Financial Reporting Entity: The accompanying financial statements present the
Town=s primary government and certain component units which are financially dependent on the
Town. The Town=s component units are as follows:
Blended component units: The Manton Library is governed by a board of trustees
appointed by the Town Council. The
library=s trustees govern the library in accordance with
applicable state laws. For financial
statement purposes, the Manton Library is reported as if it were part of the
Town=s operations because its purpose is to provide library
services to the citizens of the Town and is dependent upon the Town for its
financial resources.
Discrete component units: Component units (entities) which are legally separate
from the Town, but are financially dependent on the Town and their exclusion
could cause the Town=s financial statements to be misleading or incomplete
include:
$
Exeter Volunteer Fire
Department No. 1
$
Exeter Volunteer Fire
Department No. 2
$
Exeter Emergency
Dispatch
$
Exeter Rescue Corps
The discrete component units listed above were not
included as part of the financial reporting entity.
Basis of Presentation ‑ Fund Accounting: The accounts of the Town are organized on the basis
of funds or account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self‑balancing accounts that comprise its
assets, liabilities, fund balance, revenues and expenditures. Government resources are allocated to and
for individual funds based upon the purpose for which they are to be spent and
the means by which spending activities are controlled
Amounts in the ATotals
(Memorandum Only)@ columns in the preceding financial statements
represent a summation of the combined financial statement line items of the
fund types and are presented for analytical purposes only. The summation includes fund types that use
different methods of accounting and include interfund transactions that have
not been eliminated. Consequently,
amounts shown in the ATotals (Memorandum Only)@ columns
are not comparable to a consolidation and do not represent the total resources
available or total revenues and expenditures/expenses of the Town.
TOWN
OF EXETER, RHODE ISLAND
NOTES
TO FINANCIAL STATEMENTS
June
30, 2003
The following fund types are used by the Town:
Governmental Fund Types: Governmental Funds are those through which most
governmental functions of the Town are financed. The acquisition, use, and balances of the Town's expendable
financial resources and the related liabilities are accounted for through
governmental funds. The measurement
focus is upon determination of changes in financial position, rather than upon
net income determination. The following
are the Town's governmental fund types.
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.
This is a budgeted fund, and any fund balances are considered resources
available for general Town use.
Special Revenue Funds - are used to account for revenues that are legally
restricted to expenditures for specific purposes.
Capital Projects Fund - These funds
are established to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by trust
funds).
Fiduciary Fund Types: Fiduciary Funds are used to account for assets held by the Town in a
trustee capacity or as an agent for individuals, private organization, other
governmental units, and/or other funds.
They include expendable, non-expendable trust funds, and agency funds.
Expendable trust funds - are
accounted for in the same manner as the Governmental Funds.
Non-expendable trust funds - are
reported in a manner similar to entities found in the private sector. The measurement focus is upon the
determination of net income and capital maintenance.
Agency funds - are accounted for using the modified accrual basis of accounting.
Account Groups:
General fixed assets and long‑term liabilities expected to be financed
from governmental funds are accounted for in this group of accounts. This group is concerned only with the
measurement of financial position; it is not involved with measurement of
results of operations. Because of their
spending measurement focus, expenditure recognition for governmental fund types
is limited to exclude amounts represented by accounting for general fixed
assets and noncurrent liabilities, such as long‑term liabilities relating
to bond issuance. 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 in the
following account groups:
General Long-Term Debt Account Group - This
account group is used to record the principle balances of general obligation
bonds, deferred compensatory costs, unfunded pension liabilities, and other
long-term debt obligations not reported elsewhere.
General Fixed Assets Account Group - This account group is used to maintain control and
cost information for all fixed assets.
TOWN OF EXETER, RHODE ISLAND
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
Basis of Accounting: All governmental and expendable trust funds use the flow of current
financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual
basis of accounting, revenues are recorded when susceptible to accrual, i.e.,
both measurable and available.
Available means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period (see Note D for
property tax revenue policy).
Expenditures, other than interest on long‑term debt, are recorded
when the liability is incurred. Interest
on long-term debt is recorded when the liability is paid. Under this basis, revenues other than
property taxes are recorded as revenues when received in cash because they are
generally not measurable until actually received.
The accrual basis of accounting is utilized by the
non-expendable trust funds. Under this
method, revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred.
Encumbrances:
Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of funds are recorded in order to reserve that
portion of the applicable appropriation, is employed in the governmental
funds. Open encumbrances are reported
as reservations of fund balances since the commitments will be honored through
subsequent year=s expenditures.
Encumbrances do not constitute expenditures or liabilities. (See Note B for budgetary reporting of
encumbrances.)
Risk Management:
The Town is exposed to various risks of loss related to torts; theft of, damage
to, and destruction of assets; errors and omissions; injuries to employees; and
natural disasters. The Town maintains
insurance covering each of those risks of loss.
The Town is insured under a statewide municipal risk
management pool. Rhode Island
Inter-Local Risk Management Trust, Inc.
(the Trust) requires annual premiums based on the pool's
experience. The Trust offers to Rhode
Island cities and towns general liability and workers compensation insurance
which is self-sustaining through member premiums and is reinsured through
commercial companies to reduce its exposure to large losses. The agreement with the Trust states that for
premiums paid by members, the Trust will assume financial responsibility for
members losses up to the maximum amount of insurance purchased, less deductible
amounts. If a single loss is above the
Trust's retention and reinsurance coverage the excess liability reverts to the
member organization against which the claim was originally made
Management believes such coverage is sufficient to
preclude any significant uninsured losses to the Town. Settled claims have not exceeded insurance
coverage in any of the past three fiscal years.
Cash and Cash Equivalents: For the purposes of cash flows, the nonexpendable
trust funds consider all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents. The Town has included a statement of cash flows with its
nonexpendable trust funds. Cash and
cash equivalents includes $1,279,000 invested in highly liquid interest bearing
accounts at June 30, 2003.
Investments:
Investments are carried at fair
value, except for investments meeting the requirements of the Aone year option@ and
nonparticipating interest earning investment contracts (i.e. certificates of
deposit) which are recorded at amortized cost.
Under the Aone year option@,
certain investments (i.e. U.S. Treasury and agency obligations) that have a
remaining maturity at the time of purchase of one year or less may be recorded
at amortized cost.
Property and Equipment: All
government funds treat the acquisition of property and equipment as current
expenditures. The Town does not report
property and equipment in a General Fixed Assets Account Group or keep detailed
fixed asset records, as required by GAAP.
TOWN OF EXETER, RHODE ISLAND
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
Long-term debt: Long-term debt obligations of the Town are reported in the
General Long-Term Debt Account Group, which, represent landfill postclosure
care costs, land acquisition costs, and certain deferred compensatory costs,
Fund balances: The unreserved fund balances for
governmental funds represent the amount available for budgeting future
operations. The reserved fund balances
for governmental funds represent the amount that has been legally restricted
for specific purposes.
Vacation and Sick leave: Costs of accumulated vacation and personal
leave are recorded as expenditures when incurred. The liability arising from unused sick leave benefits and accrued
vacation has been recognized in the General Fund and General Long-Term Debt
Account groups.
Interfund transactions: All transactions between the Town and certain
discrete component units are considered quasi-external transactions and are
accounted for as fund revenues, expenditures or expenses (as appropriate). Transactions between the general fund and
other funds which constitute reimbursements of a fund for expenditures or
expenses initially made from it which are properly applicable to another fund
are recorded as expenditures or expenses (as appropriate) in the reimbursing
fund and as reductions of the expenditure or expense in the fund that is
reimbursed.
All interfund transactions except advances,
quasi-external transactions and reimbursements are accounted for as
transfers. Nonrecurring or non-routine
transfers of equity between funds are considered equity transfers. All other interfund transactions are treated
as operating transfers.
Amounts to be Provided: Amounts to be provided represent monies to be raised
from future tax levies to retire general long-term obligations and the
liability for compensated absences.
NOTE BBBUDGETARY
PROCESS
Budgetary adoption: It is the responsibility of the Town Council to advertise a proposed
budget for the Town for the following fiscal year no later than 10 days prior
to the Financial Town Meeting held to adopt such budget. Public hearings are conducted on the
recommended budget and the final recommended budget is legally enacted through
an ordinance at the Financial Town Meeting.
All budget appropriations, except an appropriation for capital
expenditures, lapse at the end of the fiscal year. An appropriation for a capital expenditure shall continue in
force until the purpose for which it was made has been accomplished or
abandoned; an appropriation is considered abandoned if two fiscal years
following the date of appropriation pass without any disbursement from or
encumbrance of the appropriation.
Budgetary control: The level of budgetary control for the General Fund (that is, the
level at which expenditures cannot legally exceed appropriations) is fixed by
resolution of the Annual Financial Town Meeting. The resolution authorized the Town Council to spend within the
total sum appropriated for municipal purposes.
While this restriction prohibits spending in excess of the authorized
budget, the policy enables the Town Council to use the Fund Balance within the
overall appropriations budget to offset over expenditures that may arise within
a specific budget account.
TOWN
OF EXETER, RHODE ISLAND
NOTES
TO FINANCIAL STATEMENTS
June
30, 2003
NOTE C--CASH DEPOSITS AND INVESTMENTS
Cash: Cash deposits are in various Rhode Island
financial institutions and are carried at cost.
The composition of the cash deposits and investments
fluctuates depending primarily on the timing of state and local receipts and
operating outlays throughout the year.
Carrying Bank
Amount
Balance
Insured (FDIC) $ 163,763 $ 360,983
Uninsured or uncollateralized 1,077,319 1,446,004
Total
Deposits $ 1,241,082 $ 1,806,987
Investments: Investments consist primarily of common
stocks, mutual funds, repurchase agreements, and U.S. Government
Securities.
Certain investments are categorized to give an
indication of the level of risk assumed at year-end.
Category 1 includes insured or registered, or securities held by
the government or its agent in the government=s name.
Category 2
includes uninsured and unregistered, with securities held by the counterparty=s trust department or agent in the government=s name.
Category 3
includes uninsured and unregistered with securities held by the counterparty or
by its trust department or agent, but not in the government=s name.
The mutual funds and the municipal plus trust are not
subject to risk categorization.
Carrying
Category
1 Category 2 Category 3
Value
U.S. Government Obligations $ C $ C $ 154,693 $ 154,693
Common stocks C C 349,560 349,560
Mutual funds C C C 481,141
$ C $ C $
504,253 $ 985,394
NOTE DBPROPERTY
TAXES
The Town=s
property tax is levied each June 30, for its next fiscal year on the assessed
valued listed as of the prior December 31, for all real property, tangible
property, and motor vehicles located in the Town. Assessed values of real property and tangible personal property
were established by the Town Assessor=s office
at 60% of appraised market value as of December 31, 1992. The Town completed a revaluation of real
property and tangible personal property as of December 31, 1992. The assessed values were effective for the
property tax levy beginning with fiscal year 1993-1994. The assessed value of motor vehicles is
determined annually at 100% of retail market value.
The Town entered into a contractual relationship with
a law firm to act as a collection agency to pursue delinquent tangible and
personal property accounts. The Town
has forwarded past due accounts for collection. At June 30, 2003, no reserve has been established for the
property taxes considered delinquent.
The property tax revenue associated with the delinquent taxes has been
deferred.
TOWN
OF EXETER, RHODE ISLAND
NOTES
TO FINANCIAL STATEMENTS
June
30, 2003
An automatic lien is placed on the taxpayer=s property if payment has not been received by the due
date. Interest is charged on past due
accounts at a rate of 12% per annum calculated on the unpaid portion of the total
tax.
The Town recognizes property tax revenues in
accordance with Codification of Governmental Accounting and Financial
Reporting Standards. Unpaid
property taxes at year end are recorded as property taxes receivable and those
property taxes receivable which were not collected within 60 days immediately
following year end are recorded as deferred revenue. Deferred revenue at June 30, 2003 consists of $346,575 of
property taxes not collected within 60 days following year end.
Net property taxes levied for the fiscal year 2003
were based on an assessed value of approximately $230,973,302 at December 31,
2001 and amount to $8,316,813 plus addendum billings of $34,868. Total property tax recognized for the fiscal
year, including $61,000 collected within 60 days following year end, amounted
to $8,282,086 which represents 99% of the total 2003 tax levy. Tax abatements for the year ended June 30,
2003 totaled $133,251.
Taxes are due in equal quarterly installments on
September 1-15, December 1-15, March 1-15, and June 1-15 during the fiscal
year.
NOTE EBINTERFUND
RECEIVABLES AND PAYABLES
Individual fund interfund receivable and payable
balances at June 30, 2003 are as follows:
Interfund
Interfund
Receivable Payables
General fund $ 5,000 $
406,164
Special revenue fund:
CDBG C 5,000
RI EMA/FEMA Grant 3,928 C
Planning board project review fees 6,825 C
Revaluation 19,447 C
Fiduciary trust funds:
Cemetery fund 325 C
Reynolds fund C 325
Agency funds 37,000 C
Capital projects fund:
Old Town hall renovation 25,949 C
Vehicle replacement 12,016 C
New library 199,339 C
Public works/roads 101,613 C
Computerized upgrade 47 C
$
411,489 $ 411,489
TOWN
OF EXETER, RHODE ISLAND
NOTES
TO FINANCIAL STATEMENTS
June 30, 2003
NOTE FBEXETER-WEST
GREENWICH REGIONAL SCHOOL DISTRICT
The Exeter-West Greenwich Regional School District
(School District), a legal entity that is separate from the Town of Exeter, was
formed by the Towns of Exeter and West Greenwich through an agreement dated
July 1, 1965. The School District consists of grades Kindergarten through grade
12. The junior/senior high school and
all other school buildings are owned by the School District.
In accordance with the founding agreement, three
members of the six member governing board of the School District are elected by
the voters of each of the Towns of Exeter and West Greenwich. The Towns are annually assessed an
apportionment of operating and capital expenses based on student
enrollment. The assessment to the Town
of Exeter for fiscal year 2003 was $7,062,696.
The Town of Exeter is legally obligated to fund their
share of the School District=s budgets as voted.
The Town of Exeter is also contingently liable for their proportional
share of the School District=s bonded debt approved at a joint School District
meeting.
Long-term debt of the Exeter-West Greenwich Regional
School District which the Town is contingently liable for their proportional
share, is as follows at June 30, 2003:
Unaudited
General obligation bonds $
10,635,000
Bond anticipation note 1,600,000
Certain accrued compensated absences 471,278
Total Long-Term Debt $
12,706,278
A complete financial statement of the School District
may be obtained through the Superintendent=s
office.
NOTE G--LONG-TERM DEBT
The following schedule reflects the changes in the
Town=s long-term debt as shown in the general long-term
debt account group during fiscal 2003:
July
1, 2002 Additions Retirements June 30, 2003
Landfill postclosure care costs (Note J) $ 900,000 $ C $ C $ 900,000
Land acquisition costs 200,000 C 25,000 175,000
Compensated absences 18,264 1,149 C 19,413
Capital lease C 130,000 26,000 104,000
Total general and long-term debt $ 1,118,264 $ 131,149 $ 51,000 $ 1,198,414
On March 12, 2001, the Town purchased land for
$250,000 through a noninterest bearing note due in annual installments of
$25,000 through 2010.
On April 1, 2002 the Town Council approved the
resolution authorizing the Town to finance the construction of the
Town library by the issuance of not more than $500,000
in bonds. To date no bonds have been
issued.
TOWN OF EXETER, RHODE ISLAND
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
NOTE H--CAPITAL LEASE
The Town has entered into a lease agreement as lessee
for financing the acquisition of a TYMCO Model 500 regenerative air street
sweeper with a down payment of $28,234.
This lease agreement qualifies as a capital lease for accounting
purposes and, therefore, has been recorded at the present value of the future
minimum lease payments.
The future minimum lease obligation and the net
present value of these minimum lease payments as of June 30, 2003 are as
follows:
Year ending June 30
2004 $ 28,234
2005 28,234
2006 28,234
2007 28,234
Total minimum lease payments 112,936
Less: Amount representing interest (8,936)
Present value of minimum lease payments $
104,000
NOTE IBLANDFILL
POSTCLOSURE CARE COSTS
GASB 18, Accounting for Municipal Solid Waste
Landfill Closure and Postclosure Care Costs. requires the recognition of
closure and postclosure costs of landfills as long-term liabilities. State and federal laws and regulations
require that the Town perform certain maintenance and monitoring functions for
30 years after its landfill has been closed.
The Town is designing a landfill closure plan estimated at $900,000,
which liability is reported in the Town=s
financial statements as a long-term debt of $900,000. The estimated liability for landfill postclosure care costs as of
June 30, 2003 which is based on a total cost of $90,000 per acre. Additional costs that might arise from
changes in postclosure requirements (due to changes in technology or more
rigorous environmental regulations, for example) may need to be covered by
additional charges to taxpayer in future years.
NOTE JBCOMMITMENTS
AND CONTINGENCIES
At June 30, 2003, the Town had several lawsuits
pending and had been placed on written notice of potential claims. The Town intends to vigorously pursue its
claims and/or defend its position with respect to each matter. In the opinion of the Town=s legal counsel, the Town=s liability with respect to these cases, if any, was
not determinable. It is the opinion of
Town management, based in part on the advice of legal counsel, that settlement
on the above lawsuits will not materially affect the Town=s financial position.
NOTE KBSTEWARDSHIP,
COMPLIANCE, AND ACCOUNTABILITY
Compliance:
The Town has no material violations of finance-related legal and contractual
provisions.
Deposits with financial institutions: RIGL 35-10.1, the ARhode
Island Collateralization of Public Deposits Act@
requires that time deposits with maturities exceeding 60 days held in
institutions holding public deposits be 100% collateralized by insurance or
eligible collateral. During the year,
there were no violations of the law noted.
TOWN OF EXETER, RHODE ISLAND
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
NOTE LBPENSION
PLAN
Plan Description and Funding: The Town maintains a defined contribution plan, the
Town of Exeter Money Purchase Pension Plan, for retirement benefits for all
eligible full-time employees. The plan
was established by the Town Council effective January 1, 1985. The plan provides for employer only contributions with benefits beginning at normal
retirement age. The plan is
administered by Thomas B. Fecteau Associates, Inc. Contributions were at the rate of 5% of base compensation. Eligibility requirements call for employees
to be 21 years of age and have completed 1 year (12 month period and 1,000
hours) of service. Contributions made
by the Town on behalf of eligible employees vest in accordance with a vesting
schedule documented within the retirement plan. The Town expense for to the plan for the year was $32,926. The unpaid balance due was $28,805 at June
30, 2003.
COMBINING STATEMENTS, ACCOUNT GROUPS, AND SUPPLEMENTAL
SCHEDULES
TOWN OF EXETER, RHODE ISLAND
COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS
June 30, 2003
RIEMA Planning
FEMA Board Project Library
Grant
Review Fees CDBG Revaluation
Funds Total
ASSETS
Cash and cash equivalents $ C $ C $ 12,065 $ C $ 98,173 $ 110,238
Due from other funds 3,928 6,825 C 19,447 C 30,200
TOTAL
ASSETS $
3,928 $ 6,825 $ 12,065 $ 19,447 $ 98,173 $ 140,438
LIABILITIES AND
FUND BALANCE
LIABILITIES
Due to other funds $ C $ C $ 5,000 $ C $ C $ 5,000
TOTAL
LIABILITIES C C 5,000 C C 5,000
FUND BALANCE
Reserved 3,928 6,825 7,065 19,447 98,173 135,438
TOTAL
FUND BALANCE 3,928 6,825 7,065 19,447 98,173 135,438
TOTAL
LIABILITIES AND
FUND
BALANCE $ 3,928 $ 6,825 $
12,065 $ 19,447 $ 98,173 $ 140,438
TOWN OF EXETER, RHODE ISLAND
COMBINING STATEMENTS OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS
Year Ended June 30, 2003
RIEMA Planning
FEMA Board Project Wolf Rock Library Library
Grant
Review Fees Road Project CDBG
Revaluation
Funds Total
REVENUES
Grant revenues $
3,928 $ C $ 48,003 $
2,750 $ C $ C $ 54,681
Other revenues C 17,149 14,862 1,400 C 45,310 78,721
TOTAL
REVENUES 3,928 17,149 62,865 4,150 C 45,310 133,402
EXPENDITURES
Program expense C 10,324 356,075 5,065 119,103 4,579 495,146
TOTAL
EXPENDITURES C 10,324 356,075 5,065 119,103 4,579 495,146
EXCESS
OF REVENUES
OVER
(UNDER)
EXPENDITURES
BEFORE
OTHER FINANCING
SOURCES 3,928 6,825 (293,210) (915) (119,103) 40,731 (361,744)
Transfers from other financing sources
C C C C 35,000 C 35,000
EXCESS OF
REVENUES AND
OTHER FINANCING SOURCES
OVER (UNDER)
EXPENDITURES 3,928 6,825 (293,210) (915) (84,103) 40,731 (326,744)
FUND BALANCE -
RESERVED JULY 1, 2002 C C 293,210 7,980 103,550 57,442 462,182
FUND
BALANCE -
JUNE
30, 2003 $ 3,928 $ 6,825 $ C $ 7,065 $
19,447 $ 98,173 $ 135,438
TOWN
OF EXETER, RHODE ISLAND
COMBINING
BALANCE SHEET - CAPITAL PROJECTS FUND
June
30, 2003
Old Vehicle Public
Town
Hall Replacement New Works/ Computerized Renovation
Fund Library Roads Upgrade
Total
ASSETS
Due from other funds $
25,949 $ 12,016 $ 199,339 $ 101,613 $ 47 $ 338,964
TOTAL
ASSETS $ 25,949 $ 12,016 $ 199,339 $
101,613 $ 47 $ 338,964
FUND BALANCE
Designated for future capital
project requirements $
25,949 $ 12,016 $ 199,339 $ 101,613 $ 47 $ 338,964
TOTAL
FUND BALANCE $ 25,949 $ 12,016 $ 199,339 $
101,613 $ 47 $ 338,964
TOWN
OF EXETER, RHODE ISLAND
COMBINING
STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - CAPITAL PROJECTS FUND
Year
Ended June 30, 2003
Old Vehicle
Town
Hall Replacement Chelsea Park New Land Public Computerized Street
Renovation
Fund Playground Library Acquisition Works/roads Upgrade Sweeper
Total
REVENUES $ C $ 4,359 $ 50,000 $ C $ C $ 85,490 $ C $
C $
139,849
TOTAL
REVENUES C 4,359 50,000 C C 85,490 C C 139,849
EXPENDITURES C 2,115 50,000 14,584 25,000 96,065 24,516 28,234 240,514
TOTAL
EXPENDITURES C 2,115 50,000 14,584 25,000 96,065 24,516 28,234 240,514
EXCESS
OF REVENUES OVER
(UNDER) EXPENDITURES C 2,244 C (14,584) (25,000) (10,575) (24,516) (28,234) (100,665)
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds C 1,000 C C 25,000 C 23,258 28,234 77,492
EXCESS
OF REVENUES AND
OTHER SOURCES OVER (UNDER)
EXPENDITURES
AND OTHER USES C 3,244 C (14,584) C (10,575) (1,253) C (23,173)
Fund balance - unreserved for
capital projects July 1, 2002 25,949 8,772 C 213,923 C 112,188 1,305 C 362,137
FUND
BALANCE - UNRESERVED
FOR
CAPITAL PROJECTS
JUNE
30, 2003 $ 25,949 $
12,016 $ C $
199,339 $ C $
101,613 $ 47 $ C $
338,964
TOWN OF EXETER, RHODE ISLAND
COMBINING BALANCE SHEET - FIDUCIARY TRUST FUNDS
June 30, 2003
Expendable Trust Funds Nonexpendable Trust Funds
Manton
Emily
J.
Reynolds= Free Historical Cemetery Arnold Anthony Agency
Fund
Library Records Fund
Fund
Fund
Funds Total
ASSETS
Cash $ C $
2,274 $ 6,754 $ 27,916 $
3,860 $ 5,401 $ 39,278 $
85,983
Investments 883,406 C C C C 101,988 C 985,394
Due from other funds C C C 325 C C 37,000 37,325
TOTAL
ASSETS $ 883,406 $
2,774 $ 6,754 $ 28,241 $ 3,860 $ 107,389 $
76,278 $ 1,108,702
LIABILITIES AND
FUND BALANCES
LIABILITIES
Amounts held for others $ C $
C $
C $ C $ C $
C $ 76,278 $ 76,278
Due to other funds 325 C C C C C C 325 325 C C C C C 76,278 76,603
FUND BALANCES
Fund balances - reserved 883,081
2,774 6,754 28,241 3,860 107,389 C 1,032,099
TOTAL
LIABILITIES
AND FUND
BALANCES $ 883,406 $ 2,774 $ 6,754 $
28,241 $ 3,860 $ 107,389 $ 76,278 $
1,108,702
TOWN OF EXETER, RHODE ISLAND
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -
EXPENDABLE TRUST FUNDS
Year Ended June 30, 2003
Reynolds= Historic Manton
Free
Fund
Records
Library
Total
REVENUES
Interest income $ 10,282 $ 55 $ C $ 10,337
Other investment income 14,107 C C 14,107
Other revenues C 2,503 C 2,503
TOTAL
REVENUES 24,389 2,558 C 26,947
EXPENDITURES
Investment expenses 23,571 C 1,624
25,195
TOTAL
EXPENDITURES 23,571 C 1,624
25,195
EXCESS
OF REVENUES
OVER
(UNDER) EXPENDITURES 818 2,558 (1,624) 1,752
Fund balance - July 1, 2002 882,263 4,196 4,398
890,857
FUND BALANCE JUNE 30, 2003 $