La lecture en ligne est gratuite
Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres
Télécharger Lire

NCSSWFA 2008 audit report final

De
29 pages
Nassau County Sewer and Storm Water Finance Authority Financial Statements as of and for the Years Ended December 31, 2008 and 2007, and Independent Auditors’ Reports NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY TABLE OF CONTENTS Page INDEPENDENT AUDITOR’S REPORT 1–2 MANAGEMENT’S DISCUSSION AND ANALYSIS 3–5 BASIC FINANCIAL STATEMENTS: ENTITY-WIDE FINANCIAL STATEMENTS Statements of Net Assets as of December 31, 2008 and 2007 6 Statements of Activities for the Years Ended December 31, 2008 and 2007 7 GOVERNMENTAL FUNDS FINANCIAL STATEMENTS Balance Sheets as of December 31, 2008 and 2007 8–9 Statement of Revenues, Expenditures, and Changes in Fund Balance for the Years Ended December 31, 2008 and 2007 10–11 Reconciliation of the Balance Sheets to the Statements of Net Assets as of December 31, 2008 and 2007 12 Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statements of Activities for the Years Ended December 31, 2008 and 2007 13 Notes to the Financial Statements 14–24 Independent Auditors’ Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 25–26 Independent Auditors’ Report on Requirements Applicable to Investment Policies and Procedures 27INDEPENDENT AUDITORS’ REPORT To the Members of the ...
Voir plus Voir moins
 
 
Nassau County Sewer and Storm Water Finance Authority
Financial Statements as of and for the Years Ended December 31, 2008 and 2007, and Independent Auditors’ Reports
 
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY TABLE OF CONTENTS
INDEPENDENT AUDITOR’S REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS:  ENTITY-WIDE FINANCIAL STATEMENTS  Statements of Net Assets as of December 31, 2008 and 2007  Statements of Activities for the Years Ended December 31, 2008 and 2007  GOVERNMENTAL FUNDS FINANCIAL STATEMENTS  Balance Sheets as of December 31, 2008 and 2007  Statement of Revenues, Expenditures, and Changes in Fund Balance  for the Years Ended December 31, 2008 and 2007  Reconciliation of the Balance Sheets to the Statements of Net Assets as of  December 31, 2008 and 2007  Reconciliation of the Statements of Revenues, Expenditures, and Changes  in Fund Balance of Governmental Funds to the Statements of Activities  for the Years Ended December 31, 2008 and 2007  Notes to the Financial Statements  Independent Auditors’ Report on Internal Control Over Financial Reporting and  Compliance and Other Matters Based on an Audit of Financial Statements  Performed in Accordance WithGovernment Auditing Standards  Independent Auditors’ Report on Requirements Applicable to Investment Policies and Procedures
Page 1–2 3–5
6 7 8–9 10–11 12 13 14–24 25–26 27
INDEPENDENT AUDITORS REPORT
To the Members of the Board of Directors of Nassau County Sewer and Storm Water Finance Authority: We have audited the accompanying financial statements of the governmental activities and each major fund of the Nassau County Sewer and Storm Water Finance Authority (the “Authority”) as of December 31, 2008 and 2007, and for the years then ended, which collectively comprise the Authority’s basic financial statements. These financial statements are the responsibility of the Authority’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained inGovernment 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 basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the respective financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the Authority as of December 31, 2008 and 2007, and the respective changes in financial position for the years then ended in conformity with accounting principles generally accepted in the United States of America. The Management’s Discussion and Analysis on pages 3 through 5 is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. This supplementary information is the responsibility of the Authority’s management. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
 
 
 
 
In accordance withGovernment Auditing Standards, we have also issued our report dated June 12, 2009, on our consideration of the Authority’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standardsand should be considered in assessing the results of our audit.
 June 12, 2009
- 2 - 
 
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
Introduction The Nassau County Sewer and Storm Water Finance Authority (the “Authority”) was established in 2003 by the State of New York (the “State”) under the NassauCounty Sewer and Storm Water Finance Authority Act, codified as Title 10-D of Article 5 of the Public Authorities Law of the State as a public benefit corporation. The State Legislature determined the creation of the Authority to be an effective mechanism to achieve substantial savings to Nassau County (the “County”)for past and prospective sewer and storm water resources capital investments. The Authority has been established for the limited objectives of refinancing outstanding sewer and storm water resources debt issued by or on behalf of the County and financing future County sewer and storm water resources projects. The Authority may issue debt in an amount up to $350,000,000 for such purposes (exclusive of debt issued to refund or otherwise repay Authority debt). The Authority has acquired all of the sewer and storm water resources facilities, buildings, equipment, and related assets other than land (the “System”) ofthe County pursuant to the Financing and Acquisition agreement dated as of March 1, 2004, by and between the Authority and the County (the “Agreement”). The Authority is required to pay for the System in installments by undertaking to pay debt service on outstanding bonds issued by or on behalf of the County originally issued to finance the System (“County Bonds”). In addition, as part of such purchase price, the Authority may, at the request of the County, refinance County Bonds. Most of the Authority’s revenues are derived through the imposition by the County of assessments for sewer and storm water resources services. The County has directed each city and town receiver of taxes to pay all such assessments directly to the trustee for the Authority’s bonds. The Authority retains sufficient funds to service all debt (including County Bonds), and pay its operating expenses. Excess funds are remitted to the Nassau County Sewer and Storm Water Resources District (the “District”). The District is responsible for paying for the operations of the County’s sewer and storm water resources services. In 2008 the Authority issued $152,240,000 of System Revenue Bonds 2008 Series A (the “2008A Bonds”). The 2008A Bonds are issued under and secured by the Authority’s General Revenue Bond Resolution dated as of March 1, 2004 as supplemented by a Third Supplemental Resolution dated as of May 13, 2008. The 2008A Bonds are the third series of Bonds issued by the Authority and the proceeds were used to refinance the Authority’s outstanding $45,375,000 System Revenue Bonds, 2004 Series A and the Authority’s outstanding $76,480,000 Tax-Exempt Commercial Paper Notes (the “CP Notes”), and to finance certain capital improvements to the System.  Overview of the Financial Statements The financial statements of the Authority consist of the following components: management’s discussion and analysis (this section), financial statements, and notes to the financial statements. Management’s discussion and analysis of the Authority’s financial performance provides an overview of the Authority’s financial activities for the years ended December 31, 2008 and 2007. The overview, which covers the most important financial events of the periods, should be read in conjunction with the Authority’s financial statements, including the notes to the financial statements.
- 3 -
 
Entity-wide financial statements of the Authority are in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34,Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. The entity-wide financial statements use the economic resource measurement focus and accrual basis of accounting. These statements are presented to display information about the reporting entity as a whole. The statement of net assets presents information on all the Authority’s assets and liabilities, with the difference between the two reported as net assets. The statement of activities presents information showing how the Authority’s net assets changed during the period. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Governmental fund financial statements are presented using the current financial resources measurement focus and modified accrual basis of accounting. These statements are the balance sheets and the statement of revenues, expenditures and changes in fund balance. Revenue is accrued when it becomes both measurable and available to finance expenditures in the current fiscal period. The financial statements include reconciliations between the entity-wide and governmental fund financial statements. Accompanying notes to the financial statements are an integral part of the financial statements. Financial Highlights and Overall Analysis The Authority started operations on June 4, 2004, and received its initial revenue from the District through a permanent cash transfer of $73,969,764. The Authority’s main ongoing revenues are the County sewer assessments, which are paid directly to the Authority’s trustee twice a year (in February and August). Assessments were $103,940,157 in 2008 and $118,934,415 in 2007 or 40.4% and 86.0% of total revenues, respectively. Transfers to the District represent reimbursement to the District for debt service the District paid directly to the County on County Bonds for which the Authority is contractually obligated to pay, plus the sewer assessments net of debt service and related expenses paid by the Authority per the Agreement. Transfers to the District, which are a use of funds and not included in total expenses, were $80,016,876 in 2008 and $123,994,324 in 2007. Income derived from the investment of available cash in short-term federal securities was $664,065 in 2008 and $230,382 in 2007 or 0.2% and 0.2% of total revenues, respectively. Investment income increased in 2008 due to a change in the timing of transfers out to the district. Entity-Wide Financial Statements Total revenues, net of transfers to the District, were $29,028,708 in 2008 and $18,941,862 in 2007. The primary recurring revenues are sewer assessments and investment income. Total expenses were $56,107,149 in 2008 and $55,791,268 in 2007. Total expenses increased in 2008 due mainly to the estimate of an adjustment to interest receivable. The primary expenses in 2008 were depreciation of $39,290,781, Authority debt service of $5,523,960 and debt service of $10,234,617 on County Bonds. Governmental Fund Financial Statements Total revenues and other financing sources were $394,613,058 in 2008 and $283,365,215 in 2007. The primary sources of revenues are sewer assessments and investment income. Authority debt increased in 2008, as compared to 2007, due to the refunding of the 2004A Bonds and the CP Notes. Other financing uses decreased slightly in 2008 due mainly to the net effect of a decrease in transfers
- 4 -
 
to the District and a transfer to the Escrow Agent to refund the 2004A Bonds and the CP Notes. Transfers to the District in 2008 decreased due to a reduction in sewer assessments.
- 5 -
 
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY STATEMENTS OF NET ASSETS AS OF DECEMBER 31, 2008 AND 2007
ASSETS Cash and cash equivalents Receivables Buildings — net of accumulated depreciation Infrastructure — net of accumulated depreciation Equipment — net of accumulated depreciation Issuance costs — net of accumulated amortization TOTAL
LIABILITIES AND NET ASSETS LIABILITIES:  Accrued expenses  Interest payable-authority bonds and commercial notes payable  Authority bonds payable  Due within one year  Due in more than one yea  Original issue premium — net of accumulated amortization  Commercial paper notes payable  Due to County:  Due within one year  Due in more than one yea  Due to District  Accrued interest payable  Other payable — County  Total liabilities NET ASSETS:  Invested in capital assets net of related debt  Unrestricted deficit
 Total net assets TOTAL
See notes to financial statements.
- 6 -
2008 $ 28,854,866  314,379  276,502,828  590,495,656  718,239  5,361,285  902,247,253
$ 64,697  1,204,063  6,545,000  169,250,000  2,434,885 -                       29,798,876  258,886,393 -                       2,155,064 -                       470,338,977  584,023,506  (152,115,231)
 431,908,275  902,247,253
2007 $ 24,599,563  13,491,602  285,350,366  620,372,403  518,711  1,589,777  945,922,422
$ 61,525  746,806  3,295,000  68,930,000  1,497,029  69,135,000  33,550,726  257,884,467  18,994,324  2,803,183  2,869  456,900,929  617,702,218 (128,680,725)
 489,021,493  945,922,422
  
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
REVENUES:  Sewer assessments  Transfer from District  Less Transfer to District  NIFA’s payment of NIFA Bonds Principal and Interest  Investment Income  Amortization of Original Issue Premium  Total revenues EXPENSES:  Professional fees  Depreciation  Interest expense:  Authority bonds and commercial paper notes  County debt  Amortization of issuance costs  Total expenses TRANSFER (OUT)/IN CHANGE IN NET ASSETS NET ASSETS — Beginning of yea NET ASSETS — End of year
See notes to financial statements.
 
- 7 -
Governmental Activities 2008 2007 $ 103,940,157 $ 118,934,415  - 18,994,324  (80,016,876) (123,994,324)  4,297,922 4,687,690  664,065 230,382  143,440 89,375  29,028,708 18,941,862
 775,620 745,076  39,290,781 39,134,382  5,523,960 4,980,515  10,234,617 10,866,406  282,171 64,889  56,107,149 55,791,268  (30,034,777) 10,923,567  (57,113,218) (25,925,839)  489,021,493 514,947,332 $ 431,908,275 $ 489,021,493
 
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY BALANCE SHEET As of December 31, 2008
ASSETS:  Cash  Investments  Interest Receivable TOTAL ASSETS
LIABILITIES AND FUND BALANCE:  Fund Balance — Unreserved
TOTAL LIABILITIES AND FUND BALANCE
See notes to financial statements.
 
General Fund $ 146,158  28,708,708  314,379 $ 29,169,245
 29,169,245
$ 29,169,245
- 8 -
Debt Service Fund $ -    -                    -                    $ -
                     -
$ -              
Total Governmental Funds $ 146,158  28,708,708  314,379 $ 29,169,245
 29,169,245
$ 29,169,245
 
NASSAU COUNTY SEWER AND STORM WATER FINANCE AUTHORITY BALANCE SHEET AS OF DECEMBER 31, 2007
ASSETS:  Cash and cash equivalents  Interest receivable  Due from Count
TOTAL ASSETS
LIABILITIES AND FUND BALANCE:  Due to Distric  Commercial paper notes payable  Due to Count  Fund balance (deficit) — unreserved TOTAL LIABILITIES AND FUND BALANCE
See notes to financial statements.
 
General Fund $ 16,387,101  1,090,036 -
 17,477,137
$ -                 24,700,000  2,869  (7,225,732) $ 17,477,137
- 9 -  
Debt Service Fund $ 8,212,462  1,619,703  10,781,862
 20,614,027
$ 18,994,323  44,435,000 -(42,815,296) $ 20,614,027
Total Governmental Funds $ 24,599,563  2,709,739  10,781,862
 38,091,164
$ 18,994,323  69,135,000  2,869  (50,041,028) $ 38,091,164