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Home My WebLink AboutAUDIT 06-30-1980 FINANCIAL STATEMENTS AND AUDITORS' REPORT TOWN OF NORTH ANDOVER June 30, 1980 CONTENTS AUDITOR'S REPORT FINANCIAL STATEMENTS General Fund Balance Sheet Statement of Changes in Fund Balance Statement of Revenues-Estimated and Actual Statement of Expenditures and Encumbrances Compared with Author~zation Federal Revenue Sharin~ Balance Sheet Statement of Revenues, Expenditures Authorized and Changes in Fund Balance Federal Anti-Recession Fiscal Assistance Fund Balance Sheet Statement of Revenues, Expenditures Authorized and Changes in Fund Balance Other Federal and State Grants Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Special Revenue Funds Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Capital. Project Fund Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Exhibit A-1 A-2 A-3 A-4 B-1 B-2 C-1 C-2 D-1 D-2 E-1 E-2 F-1 F-2 Page 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I I I I I I I I I I I I I I I I CONT~NTS-CONT INUED Trust and A~enc¥ Fund Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance General Lon~-Term Debt Group of Accounts Statement of General Long-Term Debt NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION SCHEDULE OF TREASURER'S CASH INVESTMENTS - -_ - SCHEDULE OF REAL ESTATE,PERSONAL PROPERTY, MOTOR VEHICLE AND FARM EXCISE SCHEDULE OF TAX LIENS AND FORECLOSURES AND TAXES IN LITIGATION SCHEDULE OF ACCOUNTS RECEIVABLE-WATER, SEWER AND OTHER OUTSTANDING LIST-DEFERRED AND SUSPENDED ASSESSMENTS SCHEDULE OF EXPENDITURES AND ENCUMBRANCES COMPARED WITH AUTHORIZATIONS IN DETAIL BY MUNICIPAL FUNCTION SCHEDULE OF EMPLOYEES' WITHHOLDINGS SCHEDULE OF SERIAL BONDS PAYABLE SCHEDULE OF LONG-TERM DEBT-AMORTIZATION SCHEDULE OF DEBT ACCOUNT-COMPUTATION OF LEGAL DEBT MARGIN Exhibit G-1 G-2 H-1 Schedple. I II __ III IV V VI VII VIII IX X XI 2 Pa~e 19 20 21 Page 22 29 30 .... 31 32 33 and 34 35 36 to 39 4O 41 42 MAIL ADDRESS: P. O. BOX 7015 BOSTON. MASS. 02204 To the Honorable Board of Selectmen Town of North Andover North Andover, Massachusetts 01845 Dear Members: We have examined the financial statements of the various funds and the general long-term debt group of accounts of the Town of North Andover, Massachusetts as of June 30, 1980, and for the year then ended as listed in the foregoing table of con- tents. Our examination was made in accordance with generally accepted auditing stan- dards, and accordingly included such tests of the accounting records and other audit- ing procedures as we considered necessary in the circumstances. Our examination did not include the Community Development Block Grant Programs for HousingRehabilitatton and Housing~_and Urban Development which are audited bY_various independent auditors. However, the financial statements of these programs are included with the accompanying financial report. The accompanying financial statements have been prepared in accordance with the provisions set forth by the General Laws of the Commonwealth of Massachusetts and do not represent either the financial position or results of operation presented in accordance with generally accepted accounting principles. The basis of accounting utilized in formulating the Town of North Andover's financial statements and the de- partures from generally accepted accounting principles are disclosed in the accompanying notes to financial statements. In our opinion, with the exception of the aforementioned Community Development Block Grant Programs,.. the accompanying financial statements as of June 30, 1980 and for the year then ended present fairly the information contained therein, in conformity with the provisions of the General Laws of the Commonwealth of Massachusetts, applied on a consistent basis. The accompanying supplemental information is not necessary for a fair presentation of the financial statements, but is presented as additional analytical data. This information has been subjected to such tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. In connection with our examination, we performed tests of compliance with Revenue Sharing and Antirecession Fiscal Assistance Acts and regulations as required by Sec- tion II.C.3 and III.C.3 of the Audit Guide and standards for Revenue Sharing and Anti- recession Fiscal Assistance Fund Recipients (Guide) issued by the Office of Revenue Sharing, U.S. Department of the Treasury and compared the data on Bureau of Census Form R S-9 to records of the Town of North Andover as required by Section IIoC.4 of the "Guide". Based on these procedures, we noted no difference between Census data on Form RS-9 and records of the To~n of North Andover for the year ended June 30~ 1980~ but our re- view did disclose the following instance of noncompliance with the regulations: Revenue Sharin~ .~ Section II.C.3L (viii) No formal policy exists concerning nondiscriminatory action in employment. Anti-Recession Section C.3.A (1) funds were not appropriated or obligated Within the time limit prescribed in Section 52.44 of the "Guide". ~ yours~ Department of Revenue December 4, 1980 ASSETS ~sets: Cash (Schedule I) Investments(Schedule II) Accounts Receivables: Real Estate and Personal P~ope~t¥ (Schedule Taxes in Litigation (Schedule Motor Vehicle Excise (Schedule III) Farm Excise (Schedule III) Tax Liens and Foreclosures (Schedule IV) Departmental: Water (Schedule V) Sewer (Schedule V) Other (Schedule V) Greater Lawrence Sanitary Sewer District (Schedule V) Deferred Assessment: Sewer (Schedule VI}. Water (Schedule VI) Suspended Water Main Assessments (Schedule VI) Total Assets: 5 5,672 360,392 111 17,061 48,946 26,661 12,886 41,466 20,736 15,140 EXHIBIT A-1 TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND BALANCE SHEET June 30, 1980 987,477 804,000 517,084 LIABILITIES~ R~SERVES AND FUND BALANCE Liabilities: Warrants Payable Due to Other Funds: Other Federal Grants Special Revenue Capital Project Trust and Agency Total Liabilities $ 152,404 65,993 284,317 20~8~7 Reserves: Reserve for Encumbrance Reserve for Uncollected Accounts Receivable Reserve for Treasurers Overage Total Reserves $.346,311 559,619 559,619 $ 2,868,18Q Fund Balance: Restricted (Note 1 C) 310,387 Unrestricted 919,140 Total Liabilities, Reserves and Fund Balance. See accompanying notes to financial statements. $ 208,169 523~601 $ 731.,770 906,883 1,229,527 $ 2,868,180 m EXHIBIT A-2 TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND ANALYSIS OF CHAN~ES IN FUND BALANCE For the year ended June 30, 1980 Fund Balance July 1, 1979 Add: Excess of Revenues over Expenditures: Revenue (Exhibit A-3) Expenditures (Exhibit A-4) Reserve for Encumbrances-1979 Cancelled Transferred From Special Revenue Fund Transferred From Capital Project Fund Audit Adjustments: Guarantee Deposits Federal Withholding Tax Total Balance and Additions $ 12,682,177 11~888~266 4,995 (1) 868,560 793,911 21,776 240 241 4~994 1,689,722 Deduct: Reserve for Encumbrances 1980 Increase in ProVisions for Abatements and Exemptions Fund Balance June 30, 1980 309,059 151,134 $ 1,229,527 See accompanying notes to financial statements. EXHIBIT A-3 TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND STATEMENT OF REVENUE - ESTIMATED AND ACTUAL For the year ended June 30, 1980 Estimated Actual Revenue Revenue Taxes: General Property Taxes (Excludt~E current years provision for un- collectable taxes of $301,106) Motor Vehicle Excise Farm Animal Excise Licenses and Permits Federal and State Grants Charges for Services: General Government Health and Sanitation Highways School Libraries Recreation Special Assessments Water Fines Interest (Taxes and Investments) Greater Lawrence Sanitary District In Lieu of Taxes Tax Liens Insurance Dividends and Refunds Miscellaneous $ 8,553,018 $ 8,553,018 971,266 1,248,568 715 554 31,564 17,660 1,984,233 2,014,028 Favorable Unfavorable Estimated $ 277,302 (161) (13,904) 29,795 9,944' 42,200 32,256' 40,145 54,065 13,~20 3,957 3,905 (52) 14,124 13,628 (496) 1,632 1,211 (421) 1,214 1,197 (17) 22,460 15,606 (6,854) 259,176 382,009 122,833 4,953 41,535 36,582 41,035 43,256 2,221 $ 12,089,029 148,729 213,619 864 864 2,438 31,035 1~781 $ 12,682,177 64,890 2,438 31,035 1,78~ $ 593,148 See accompanying notes to financial statements. 0 ~ ~ 0 ~ · ~0 0 ~-~ 0 Lo ~0 ~ 0 L~ 0 ~-' ~-q 0 O~ ~ 0 TOWN OF NORTH ANDOVER, MASSACHUSETTS FEDERAL REVENUE SHARING FUND BALANCE SHEET June 30, 1980 Assets Cash (Schedule I) Investments (Schedule II) Total Assets: Fund Balance Fund Balance (Exhibit B 2) See accompanying notes to financial statements. EXHIBIT B-1 $ 287 96,000 $ 96,287 $ ~6,287_ EXHIBIT B-2 TOWN OF NORTH ANDOVER, MASSACHUSETTS FEDERAL REVENUE SHARING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 1980 Fund Balance July 1, 1979 Revenues: Entitlements Interest income -~ Total Funds Available Expenditures Authorized: Salaries: Police Department Fire Department Fund Balance June 30, 1980 252,365 14,060 $ 125,000 175,000 129,862 266~425 396,287 See accompanying notes to financial statements. 10 I I I I I I I I I I I I I I I I I I TOWN OF NORTH ANDOVER, MASSACHUSETTS ANTI-RECESSION FISCAL ASSISTANCE FUND BALANCE SHEET June 30, 1980 Assets Cash (Schedule I) Fund Balance Fund Balance (Exhibit C-2) See accompanying notes to financial statements. 11 EXHIBIT C-1 1,168. 1,168_ I I I i I I I I I I I I I I I I I I EXHIBIT C-2 TOWN OF NO~TH ANDOVER, HASSACHUSETTS ANTI-RECESSION FISCAL ASSISTANCE FUND S~A~EHENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 1980 Fund Balance July 1, 1979 Fund Balance June 30, 1980 See accompanying notes to financial statements. 12 1,168 ! I I I I I I I I I I I I I I I I I I TOWN OF NORTH ANDOVER, MASSACHUSETTS OTHER FEDERAL AND STATE GRANTS BALANCE SHEET June 30, 1980 Assets Cash (Schedule I) Due From: Federal Government General Fund Total Assets Liabilities and Fund Balance Warrants Payable Fund Balance (Exhibit D-2) Total Liabilities and Fund Balance See accompanying notes to financial statements. 13 EXHIBIT D-1 $ (20,345) 20,345 152,40~ ~52.404 $ 23,599 $ 152,404 EXHIBIT D-2 TOWN OF NORTH ANDOVER, MASSACHUSETTS OTHER FEDERAL AND STATE GRANTS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For' ,the year ended June 30, 1980 Grants Fund Balance July 1, 197.9.. Receipts Federal: Public Law 874 Public Law 89-10 Public Law 93-380 Public Law 94-142-0312 Publ~e-:L~w 94-142-475 ':'- Public Law 94-482-0132 Public Law 94-482-0432 Public Law 94-482-047 Public Law 94-482-048 Public Law 94-482-049 Public Law 94-482-1342 Public Law 94-482-046-2 Public Law 95-561' School Incentive $ 166,672 $ 13,221 56,285 2,700 6,937 45,700 1,619 745 1,796 Housing Rehabilitation Program Housing and Urban Development State: Aid to Libraries 5,950. 186,419 5,698 2,089 2,659 8,546 10,475 7,900 75,980 24,365 , 5m950, 258,868 See accompanying notes to financial statements. 14 Expenditures $ 69,893 56,285 6,937 40,244:-~ :" 1,619 745 3,553 1,518 1,909 1,796 7,890 9,898 7,900 75,980 24,365 ,,5,95p $ 316,482 Fund Balance June 30; 198q 110,000 2,700. 5,456 2,145 571 75O 656 577 5,95Q 128.805 I I I I I I I I I I I I I I EXHIBIT E-1 TOWN OF NORTH ANDOVER, MASSACHUSETTS SPECIAL REVENUE FUND BALANCE SHEET 'June 30, 1980 Asset8 Due from General Fund Liabilities and Fund Balance Warrants Payable Fund Balance (Exhibit E-2) See accompanying notes to financial statements. 15 $. 65,993 2,552 63,441 65.99~ Insurance Reimbursements: Fire Police Highway Water Building Fees Donations: T.J.Flatley Desum Corp~ration Barbagallo Corporation Turtle Revolving: School Lunch Athletics Lost Books Community Center Tennis-Court Sale of Town Owned Property See accompanying notes to financial statements. 16 TOWN OF NORTH ANDOVER, MASSACHUSETTS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE June 30, 1980 Fund Balance July 1, 1979 $ 223 227 2,741 416 942 13,500 5,533 8,610 18,271 7,732 2,128 240 5,695 $ 66,258 Revenues $ 45 1,531 2,326 8,583 8,962 330,545 10,691 1,812 4,000 $ 368,49~ Expenditures 274 1,595 8,156 5,533 8,610 8,962 325,355 10,832 650 1,105 Transferred to General Fund EXHIBIT E-2 Fund Balance June 30, 1980 240 $ 268 · 1,484' 3,472' 843, 942 13,500' 371,072 $ 240 23,461 7,591 ' 3,290' 2,895' 5,695. $ 63,441 I I I I I I I I I I I I I I I I I I I Assets Due from General Fund Loans Authorized Total Assets Liabilities and Fund Balance Notes Payable Fund Balance - Reserved for Expenditures (Exhibit See accompanying notes to financial statements. 17 TOWN OF NORTH ANDOVER, MASSACHUSETTS CAPITAL PROJECTS BALANCE SHEET June 30, 1980 Totals All Funds $ 284,317 · 815,000 $ 1,099,317 815,000 284~317 ~ 1,099,317 Sewer ~ep1 acement $ 7,696 ~m696 .$ 7,696 Reservoir Covers $ 776 $ 776 776 776 EXHIBIT F-1 Sewer Extension 258,263 815,000 1.073.263 Water Mains Town Garage 815,000 , , 2,58m263 $ 1,073,263 1,628 $ 15,954 1,628 $ !5.954 $ 1,628 15,954 ~L, 35,,954~ Initial Project Authorization Fund Balance July 1, 1979 Add: Proceeds from Serial Issue Temporary Loans Total: Deduct: Expenditures Transferred to General Fund Fund Balance June 30, 1980 See accompanying notes to financial statements. 18 TOWN OF NORTH ANDOVER, MASSACHUSETTS CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 1980 Total all Sewer Reservoir Sewer Funds Replacement Covers Extension $ 1,747,510 ~ .40,000 $. 14o,oo0 $ 72,499 $ 3,130-- $.. 815,000 Water Mains _lOS,0qo $ 23;540 $ 100,510 $ 40,000 - 815m000 815~00~ $ 988,009 $ 40,000 $ 3,130 $ 815,000 $ 23,540 $ 703,451 $ 32,304 $ 2,354 241 284,31] 7,69~ $ .7~6 556,737 $ 23,540 258,263 -0- EXHIBIT F-2 Water Mains Bradford Town And Dale Garage $.. 537,000 ...~ ......... :-' $ 't52954 Fire Truck 50,000 $ 29,875 $ .60,510 60,510 $ 15,954 $ 29,875 58,882 1,628 15,954 $ 29,634 241 -O-- TOWN OF NORTH ANDOVER, MASSACHUSETTS TRUST AND AGENCY FUND BALANCE SHEET June 30, 1980 Assets Due from General Fund Investments Liabilities and Fund Balance Warrants Payable Fund Balance: Trust Funds: In Custody of Town Treasurer In Custody of Library Trustees Agency Funds $ 86,819 168,802 See accompanying notes to financial statements. 19 EXHIBIT G-1 $ 20,887 255,621 $ 2 76.50_0_~8 $ 2 $ 255,621 20,885 276~50~ $ 276,508 EXHIBIT G-2 TOWN OF NORTH ANDOVER, MASSACHUSETTS TRUST AND AGENCY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 1980 Fund Balance July It 1979 Revenues Expenditures Fund Balance June 30m 1980. Trust Funds: In Custody of Treasurer: Stone $ 10,000 $ Armitage 12,529 Taylor 271 Moses Towne 8,786 Baker 3,403 Stevens 376 Kober 162 Stabilization 5,509. Conservation 42,55~ $ 83,59% 702 14 461 178 20 9 211 1~633. $ 3,228 10,000 13,231 285 9,247 3,581 396 171 5,720 44,188_ 86,819. In Custody of Library Trustees: George W. & Ruth Berrian Anne Bradstreet Charles Davis Phillips Special Gift Copier Reynold, Tyler Abbott Stevens & M.T.Stevens Dale Stevens Elizabeth Stevens Nathanial & Elizabeth Stevens 1,520 338 233 1,625 1,417 338 200 1,555 10,083 3,621 2,293 11,411 2,858 926 756 3,028 4,736 182 4,853 65 680 4,978 4,913 745 86,188 21,742 15,903 92,027 14,141 3,383 2,434 15,090 11,195 2,706 1,970 11,931 29,82~ 8~ 6,737 31,325. $ 162,639~ $ 46m455 $ 40,292 $ 168 t802. Agency Funds: Due State Due County Guarantee Deposits Stone Income Fund Taylor Income Fund Employees' Withholding (Schedule VIII) 222 4,141 10,600 78 4,21~ $ 19,253. $ 692 692 1,899 2,121 31,352 33,557 526 2,562~54~ 2,559,013 1,936 11,126 78 7,745 2t597,015. $ 2m595,383 $ 20,885 Total Trust & Agency Funds $ 265,483 $ 2,646,698 ~ 2,635,67~ } 276,50~ 20 See accompanying notes to financial statements. TOWN OF NORTH ANDOVER, MASSACHUSETTS STATEMENT OF GENERAL LONG-TERM DEBT June 30, 1980 Amount To Be Provided For the Payment of General Long-Term Debt General Long-Term Debt Payable (Schedule IX) See accompanying notes to financial statements. 21 EXHIBIT H-1 !.. 5.186,510 $ 5,186.510 TOWN OF NORTH ANDOVER, HASSACHUSETTS NOTES TO FINANCIAL STATEHENTS June 30, 1980 1. .~ummary of Sisnificant Accountin~ Policies A. Nature of Funds The accounts of the town are organized into funds or groups of accounts, each of which is considered to be a separate accounting entity. The following funds are used in accounting for the financial operations of the town of North Andover. 1. The general fund reflects the financial transactions related to general governmental activities which are not otherwise accounted for in another fund. 2. General Revenue Sharing Fund and Anti-Recession Fiscal Assistance Fund which reflect the receipt of funds by the town for the programs and the disbursement of such funds in accordance with Federal Guidelines~ 3. Special Revenue Funds are used to account for the proceeds of specific revenue sources or to finance specified activities as required by law. 4. Trust and Agency Funds are established to account for money and property received and held by the town as trustee, custodian or agent for individuals and private organizations. 5. The Capital Projects Fund reflects the receipt and disbursement of resources for the acquisition of capital facilities other than those financed by ~pecial assessments. 6. The General Long-Term Debt Group of Accounts reflects the liabilities for long-term debt outstanding to be r~aid in future years. B. Basis of Accountin~ 1. The accounts of the general fund are maintained and presented on the modified accrual basis of accounting. Under this method, revenues are recorded as re- ceived in cash except for property taxes which are recorded as revenue when billed. 22 TOWN OF NORTH ANDOVER, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS June 30, 1980 Expenditures are recorded when they are paid in cash. Expenditures made during the fifteen days following the close of each fiscal year which are related to the prior year are recorded as paid on June 30 and have been reclassified as warrants payable. 2. The accounts of the Revenue Sharing, Anti-Recession Fiscal Assistance and Capital Projects Fund are maintained on the same basis of accounting as the general fund. Special Revenue, Trust and Agency and the General Long-Term Group of Accounts are maintained and presented on the cash basis. Appropriation balances of Capital Projects are carried forward in the Capital Projects Fund until completion of the project. TO~I OF NORTflANDOVER, NASSACHUSETTS NOTES TO FINANCIAL STATENENTS June 30, 1980 C. Fund Balance Restricted 1. Restricted Fund Balance as of June 30, 1980 was comprised of the following: Town Meeting Vote - 4-26-80 Excess Abatements Reserves Overestimated State Assessments: Special Education Air Pollution District Regional Transit Authority Adjustments of State Assessment: Estimate Special Education Overestimate Prior Year $ 21,283 8,379 $ 275,000 12,270 8,379 883 951 12,904. Total Fund Balance Restricted $ 310.387 Unrestricted Fund Balance Reductions - Reductions in un- restricted fund balancewere made-pursuan~-~-to General~- Laws of the Commonwealth of Massachusetts for the follow- ing state and County underestimate, court judgement, over- drawn appropriation, abatements granted in excess of provi- sions thereof, listed as follows: State Recreation Areas Ipswich River Watershed District County Assessments Court Judgement Interest on short term loans Tax Abatement Deficits: Levy of 1977 Levy of 1978 Levy of 1979 Levy of 1980 Total Reduction in Unrestricted Fund Balance $ 4,145 354 34,833_ 5,214 62,946 64 55,708 57,589 . 37,77~ $ 258.62? D. Fixed Assets Fixed assets are not recorded in the accounting records when acquired. Funds used to acquired fixed assets and/or make the debt service payments on borrowings in connection therewith, are accrued for expenditures in the year payment is made. 24 TONN OF NORTH ANDOVER, MASSACHUSETTS' NOTES TO FINANCIAL STATEMENTS June 30, 1980 E. Inventory of Supplies Inventory of supplies are considered to be expenditures at the time of purchase and are not included in the statements of financial position. F. Town Meettn~ Votes - Fiscal 1981 The financial statements for June 30, 1980 do not reflect the'town meeting action for fiscal 1981 voted as follows: Date of Total All From From other From ~e.eting Articles Tax Levy Available funds Revenue Sharing 4-26-80 $ 13,178,605 $ !2,896,605 $ 7,000 $ 275,000 G. Retirement Benefits Certain-administrative and other.profgssional~.employees,andteachers .o~_ _~ the towns' school department participate individually in a contributory retirement plan administered by the Massachusetts Teachers' Retirement Board. The town does not con- tribute to this plan. Retirement benefits are provided for other employees of the town by the town's participation in the Essex County Retirement System. Under the provisions of this plan, employees contribute certain percentages of their pay and are eligible for retirement benefits after attaining the prescribed age and/or period of service criteria. In addition, the town contributes to this plan an annual amount determined by the Common- wealth of Massachusetts~ Department of Banking and Insurance primarily on the basis of projected annual benefit payments for the year. The town contribution to this plan for fiscal year 1980 was $362,600. / H. ~nemRloyment SecurityV The town provides for its own share of the costs of unemployment insurance based on claims submitted by the Division of Employment Security to the town. 25 TOWN OF NORTH ANDOVER, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS June 30, 1980 I. Continsent Liabilities The letter of legal tnqhtry requested from town counsel stated that there were no contingent liabilities or unasserted claims pending to date of auditor's report. J. Sick Leavew~ A full-time employee or a part-time employee in continuous service who has completed six months of service shall be allowed six days leave with pay and thereafter shall be allowed leave of one and one quarter days for each month of service,. provided such leave is caused by sickness or injury or by exposure to contagious dis- ease. Buy-back provisions are cited in note "L" "Terminal Leave". K. Vacation Leave (A) A fuil-time~employee..o~ .a part.time employ~e,~nJ.continuous~servic~ shall be granted vacations with pay on the following terms: (1) An employee who has completed six months of service shall be entitled to one week of vacation with pay. (2) An employee who has completed one year of service shsll be entitled to two weeks of vacation with pay. (3) An employee who has completed five years of service shall be entitled to three weeks of vacation with pay. (4) An employee who has completed ten years of service sh%ll be entitled to four weeks of vacation with pay. (B) Upon the death of an employee who is eligible for vacation under these rules, payment shall be made to the estate of the deceased in an amount equal to the vacation allowance as accrued in the vacation year prior to the employee's death but which had not been granted. In addition, payment shall be made for that portion of the vacation allowance earned in the vacation year during which the employee died up to the time of his separation from the payroll. 26 TOWN OF NORTH ANDOVER~ MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS June 30, 1980 L. Terminal Leave An employee whose service is terminated by retirement shall be allowed a portion of his accumulated sick leave as terminal leave. The following formula shall be used in computing the amount of terminal leave to be allowed a retiring employee. (1) Twenty-five (25) whole years of continuous full-time service shall be considered 100% service. (2) An employee who qualifies for terminal leave shall be entitled to the same percentage that the number of years of service bears to the 100% service factor of 25 years, provided, that i~ no case shall said leave be measured by more than 60 days accumulated sick leave, or twelve work weeks, whichever is the lesser. 2. Departures from Generall7 Accepted Accountin~ Princtplep The difference between accounting and reporting practices prescribed or per- mitted under the Commonwealth's Uniform System and Generally Accepted Accounting Principles relate primarily to the composition of funds and account groups and the basis of accounting. The differences are described below: A. Composition of Funds and Account Groups, Under ge~eral~ accepted accounting principles the town would maintain enterprise funds to account for the financing of water and sewer servtces~ a debt service fund to account for the payment of interest and principal on long-term debt, a special assessment fund to account for the construction and financing of certain public improvements which are to be paid wholly in part from special assessments levied against benefited property owners and a general fixed assets group of accounts to provide historical cost information on town-owned property, plant and equipment. 27 TOWN OF NORTH ANDOVER, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS June 30, 1980 B. Basis of Accounting Under generally accepted accounting principles all of the town's funds except the Trust and Agency and Capital Projects Fund would be accounted for on a modified accrual basis. The accrual method of accounting would be used in the accounts of the Capital Projects and the Trust and Agency Funds. 1. Modified accrual basis. Under the modified accrual basis of accounting, revenues are recorded when they are both measurable and available or of a material amount and have not been received at the normal time of receipt. Other revenue items are recorded as received in cash. Expenditures are recorded when the liability is incurred. 2. A~crual basis. Under the accrual basis of accounting, all revenues and expenditures are accrued. Departures from generally accepted accounting principles have their greatest effect on the accounts in the town's general fund. Certain revenue items such as excise, departmental receivables, and amounts due from Federal, State or County agencies, would be accrued after giving some consideration to uncollectable accounts. A reserve account for property tax abatements is established in the year these items are assessed. These reserves have no relation to the collectability of the accounts. It is not practical to calculate the effect of such departures on fund balance. The town's pension plan would be recorded on the accrual basis and liabilities actuarily determined. 28 TOWN OF NORTH ANDOVER, MASSACHUSETTS RECONCILIATION OF TREASURER'S CASH For the year ended June 30, 1980 Cash Balance July 1, 1979 Receipts (Disbursements) Cash Balance June 30, 1980 ~_9mposition of Cash Balance June 30; 19.8q Cash on deposit: Checking Accounts: Arlington Trust Company Arlington Trust Company Arlington Trust Company Bay Bank-Merrimack Valley Bay Bank-Merrimack Valley Bay Bank-Merrimack Valley Bay State National Boston Safe Deposit and Trust Company Essex Bank First National Bank of Boston Harbor-National-Bank :~' New England Merchants Shawmut Bank of Boston State Street Bank and Trust Company United States Trust Company Savings Accounts: Bay Bank-Merrimack Valley Bay Bank-Merrimack Valley Bay Bank-Merrimack Valley Community Savings Malden Co-operative Massachusetts Municipal Depository Deposit in Transit,Verified Cash Variation Presentation of Cash in Balance Sheets, June 30, 1980: General Federal Revenue Sharing Federal Anti-Recession Community Development 29 SCHEDULE I 1,204,121 21,893,083 22t128.~61.~. 968,58? 30,774 152 100,000 28,897 755 287 135,019 12,856 57,173 1,959 2,669'_~: 39,237 2,302 3,498 155,954 2,886 422 1,422 12,943 22,261 6,821 350,000 3O0 968,587 987,477 287' 1,16~ (20,345) 968,587. TOWN OF NORTH ANDOVER, MASSACHUSETTS RECONCILIATION OF TREASURER'S CASH INVES~ENTS June 30, 1980 SCHEDULE II Bank Certificates of Depositp Certificate Due ~ Date Rate Amount General Fund: Arlington Trust'Company Etsex Bank New England Merchants United States Trust Company Merrimack Valley National Bank Revenue Shartn~ Fund: Merrimack Valley National Bank 27657 7-9-80 8.375 5570 7-9-80 8.35 29480 7-9-80 8.00 23147 7-9-80 8.25 3207 7-7-80 9.50 3207 7-7-80 9.50 200,000 200,000 200,000 200,000 4,000 804,000 900,000 30 Real Estate Taxes: Levy of 1980 Levy of 1979 Levy of 1978 Personal Levy of 1980 Levy of 1979 Levy of 1978 Levy of 1977 Levy of 1976 Levy of 1975 Property Taxes: Motor Vehicle Excise: Levy of 1980 Levy of 1979 Levy of 1978 Levy of 1977 Levy of 1976 Levy of 1975 Levy of 1974 Levy of 1973 Levy of 1972 Farm Excise: Levy of 1979 Levy of 1977 $ $ 31 Uncollected Taxes July 1, 1979 366,519 16,226 2,743 2,102 1,027 271 72 388~960 339,955 59,925 20,813 12,646 2,834 1,998 2,898 425 441.494 41 41 Commitments $ 8,180,967 675,277 $ 8.; 856 ~. 244 $ 1,054,031 256,045 1.310,076 624 624 TOWN OF NORTH ANDOVER, MASSACHUSETTS SCHEDULE OF REAL ESTATE, PERSONAL PROPERTY, MOTOR VEHICLE EXCISE AND FARM ANIMAL EXCISE TAXES For the year ended June 30, 1980 Abatements Adjusted Transferred and Taxes to Adjustments Collected Tax Liens 338,677 $ 7,842,290 57,447 309,072 55,399 (39,173) $ 2,121 203 143 309 63 452 41 .... '- 675,074 2,600 1,793 964 271 72 $ 8,792,96_~ $ 2,121 47,027 64,145 15,758 8,402 3,934 618 949 1,659 118 ~42.610 1,007,004 531,855 44,167 12,411 8,712 2,216 1,049 1,239 307 $ 1,608,96Q $ 624 41 $ 665 Collections Net of Refunds And Overpayments. $ 7,406,809 234,169 (41,202) 672,279 993 328 106 256 20 $ 8~273,758 $ 740,483 488,612 17,443 1,071 511 244 204 $ 1,248,56~ $ 554 Uncollected Taxes June 30, 1980 $ 433,360 74,903 2,029 2,795 1,607 1,465 858 15 52 $ 517,084 $ 266,521 43,243 26,724 11,340 8,201 1,972 1,049 1,035 307 $ 360,39~ $ 70 41 SCHgDU]~ III Uncollected Taxes' June 30, Per Detail 446,848 75,432 2,064 1980 2,830 1,654 1,448 851 15 52 531,194 257,976 42,927 22,249 12,398 7,643 1,972 1,051 1,034 307 347,557 70 41 $ 554 $ nt $ ltl Tax Liens Tax Foreclosures Taxes in Litigation 32 $ TOWN OF NORTH ANDOVER, MASSACHUSETTS SCHEDULE OF TAX LIENS AND FORECLOSURES AND TAXES IN LITIGATION For the year ended June 30m 1980 Umcollected Transfers Accounts And Adjusted July 1, 1979 Ad.iuttments Accounts 9,516 18,o4! 4,59,3 $ (1,459) $ 10,975 8,525, $ ~;4~-~Y:~'''- $ 19,500 $ (1,079} $ 5.672 $ Collections Net of Refunds And Overpayments 2,439 2,439 Uncollected Accounts June 30, 1980. $ 8,536 8,525 $ 17,06~ $ L5,672 SCHEDULE IV Uncollected Accounts June 30, 1980 Per Detail 8,536 !7.061 $ 5,672 Water: Rates: Maintenance and Construction / Mains: Unapportioned Water Assessment Paid in Advance Added to Taxes: Levy of 1979 Levy of 1980 Committed Interest: Levy of 1979 __ Levy of 1980 Rates Added to Taxes: Levy of 1978 Levy of 1979 Levy of 1980 Sewer Assessments: Unapportioned Sewer Assessment-Paid in Advance Maintenance and Construction Added to Taxes: Levy of 1979 Levy of 1980 33 Uncollected Accounts July 1, 19,~ 33,330 5,888 5,400 637 139 41 118 23,153 4,058 88 .Commitments $ 364,490 24,333 3,020 1,828 6,670 ~00~341 14,966 4,856 19~822 gOWN OF NORTH ANDOVER, MASSACHUSETTS SCHEDULE OF ACCOUNTS RECEIVABLE, WATER/SEWER AND OTHER For the year ended June 30, 1980 ~batements Adjusted And Accounts Adjustments Collectable Collections Net of Refunds And Overpayments 6,776 $ 391,044 15,301 14,920 351,249 10,042 2,400 3,000 (360) 360 360 138 24,25_ 5 637 139 1,828 41 118 6m532 421,639 $ 637 3,020 139 1,828 222 5t196 372,693 (288) 11,820 23,153 $ 1,410 288 288 7,204 2,286 88 4,856 11;53,2. $ =35,589 $ 88 4,856 8,92_ Uncollected Accounts June 30, 1980 39,795 4,878 3,000 41 (104) 1~336.. 48~946 21,743 4,918 26.661 SCHEDULE V Cash Balance June 30~ ,1980, 'Uncollected Accounts Per Detail June 30, 1980 6,937 32,725 6,547 3,000 6 ~.937 41 _1,319 $ 23,153 3,898 $ 27 ,o51 Other: School Veterans' Benefits Greater Lawrence Sanitary District: Rates Added to Taxes: Levy of 1979 Levy of 1980 Uncollected Accounts July 1, 197~ 1,979 16,532_ 48,776 718 49,494 Commitments $ :-- 9,022 $ 9,022 $ 208,937 10,797. $ 219.734 TOWN OF NORTH ANDOVER, MASSACHUSETTS SCHEDULE OF ACCOUNTS RECEIVABLE, WATER/SEWERAND OTHER (CONT'D) For the year ended June 30, 1980 Abatements Adjusted And Accounts ~Adjustments Collectable $ 1,979 1,498= =:~- ~ 24.056 1,49~ $ 26.035 $ $ 11,001 $ 246,712 718 163 10,63~_ 11,164 $ 258.064 $ Collections Net of Refunds And Overpayments 13,14~.. 13,14~ 206,952 166 9,480 ~16,598 $ $ Uncollected Accounts June 30, 1980 1,979 10,907 12,886 39,760 552 41,466 SCHEDULE V Cash Balance June30~ 1980 Uncollected Accounts Per Detail ~une 30. 1980 $ 1,979 10,907 $ 12,884 6,628 6,628 $ 32,157 442 1,154 $ .~3,753 m 34 I I I I I I I I I I I I I I I I I I Deferred Assessments/Betterments Sewer Assessments Water Mains Suspended Assessments: Water Mains 35 TOWN OF NORTH ANDOVER, MASSACHUSETTS DEFERRED/SUSPENDED ASSESSMENTS-DUE IN FUTURE PERIODS For the year ended June 30, 1980 Due In 1980 1981 1982 1983 1984-1996 Total $ ~,377 $ 4,137 $ 3,089 $ 2,85__ 8 $ 9,27~ $ 20,736 $ 1.755 $..~ ~:-_i.,:: $ 6,763 $ 15,140 SCHEDULE VI 10,548 Function/Activity Reserve For Encumbrances ~uly 1, 1979 General Government: Selectmen $ Administrative Assistant Special Legal Services Out of Town Travel Boundary-La~rrence and North Andover Eminent Domain-School Computer Service Local Growth Policy Study Committee Town Accountant Town Treasurer Tax Collector Assessors Town Clerk Town Counsel Annual Retainer Moderator Salary Election Planning Board Board of Appeals Per6onnel Board Article 32-41 Cost of Living andLongevity Town Hall and Garage Building Town Building Repairs and Renovation Merrimack Valley Planning Commission Conservation Commission 2,500 6Q0 4,525 2OO 5,212 $ 13,037 Expenditures 1,518 TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND SCHEDULE OF EXPENDITURES AND ENCUMBRANCES COMPARED WITH AUTHORIZATION For the year ended June 30, 1980 Encumbrances Cancelled Appropriation 1980 Expenditures 28,713 19,500 7,000 5OO Transfers (Dr)~ Cr 6OO u 600 41,983 42,145 39,965 68,047 23,420 9,000 200 17,272 24,830 2,560 3,220 143,206 27,500 8,800 3,257 3, a216 5!4,334 29,293 $ 598 19,500 23,980 17,062 44,515 43,060 43,267 51,656 23,705 9,000 200 17,496 24,632 2,995 3,724 100 32,659 5,519 3,257 5~811 384,369 2,610 1,052 3,302 954 285 224 330 435 514 (141,108) 5,159 180 3~156 $ (105,247) Encumbrances Prior Year Current Year 2,500 4,525 2OO 3,694 17,230 3,461' SCHEDULE VII Unencumbered Balance June 30, !980 18 82 500 78 137 115 528 10 1,998 $ 10,9!9 $ 20,691 561 4,02,7 m 36 I I I I I I I I I I I I I I I I I I i 'Function/Activity. Public Safety: Police $ Fire Dog Officer Insect and Pest Control Tree Dutch Elm Gas Inspector Wire Inspector Building Inspector Sealer of Weights and Measures Civil Defense Crossing Guards Health and Sanitation: Health Animal Inspector Garbage Disposal Contrast Greater~wrence Sanitary District Sewer Public Works: Highway Water Renew Water and Sewer Service Board of Public Works Reserve For Encumbrances July 1, 1979 5,222 54,271 2,748 ~xpenditures 1,222 $ 1,222 $ 12,457 2,748 $ 15,205 -TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND SCHEDULE OF EXPENDITURES AND ENCUMBRANCES COMPARED WITH AUTHORIZATION (CONT'D) For the year ended June 30, 1980 Encumbrances Appropriation Cancelled 1980 Expenditures 509,617 $ 546,091 681,436 740,065 11,300 12,567 25~I54 26,135 60,445 62,907 11,549 12,088 1,300 2,390 5,525 ' ~ '7,036 34,866 36,652 2,500 2,500 5,448 5,567 22~35Q 22,478 $ 1,371,490 $ 1,476,476 4,000 4,000 33,769 420 21,456 192,038 67,994_ $ 315,677 35,835 420 21,406 192,038 78,964 $ 328,663 17,172 .17,17~ $ 950,804 342,002 4,500 7,309 $ 1,304,606 $ 868,033 364,610 4,470 3 m 141 $ 1,240,254 Transfers (Dr) Cr 43,266 59,340 1,267 1,054 3,128 549 1,174 r;514 1,811 119 1~215 114,437 2,627 11 ~ 7,32 14,359 28,260 37,282 $ 65,542 SCHEDULE Encumbrances Prior Year Current Year 24,642 $ 12,449 7,054 4m109 2=S~ $ 23AL! VII Unencumbered Balance ~une 30,. 1980. 6,792 711 73 666 10 84 3 25 1~087 9,45! 561 50 762 1,373 98,582 7,620 30 5O Function/Activity Veterans' Benefits: North Andover/Boxford Districts Rental of Veterans' Quarters Schools and Library: School Library Debt and Interest: Interest on Temporary Borrowings Maturing Debt Interest on Maturing Debt Bond Issuance Expense Parks and Recreation: Parks Recreation Reserve For Encumbrances July 1m 1979 $ 303,123 $ 303,123 $ 100 100 Expenditures 303,119 p03,119 TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND SCHEDULE OF EXPENDITURES AND ENCUMBRANCES COb~ARED WITH AUTHORIZATION (CONT'D) For the year ended June 30, 1980 Encumbrances Cancelled Appropriation 1980 .Expenditures 36,330 1,200 37.539 Transfers (Dr) Cr 4 5,920,661 141,724 6.062.385 24,447 $ (4) _ 1~20,0, 25,647 $ (4) 20,000 830,000 306,181 5tO00 1,161,181 $ 5,675,475 148,020 $ 5 823 495 $ 82,946 830,000 278,997 29O 101,850 28 ~080 129,930 $ 1,192,233 $ 104,755 27,594 $ 132,349 $ 18,918 6,649 $ 25,567 $ 4,398 $ $ 4.398 $ SCHEDULE VII Encumbrances ~rior Year Current Year $ Unencumbered Balance June ,3p, 1980 11,879 11,879 $ 259,776 $ 4,328 .... 353 $ 259,776 $ ~ 100 100 $ 710 ,71o (62,946)' 27,184 (35.,762) 1,493 486 1 979 38 IFunction/Activity iUnclassified Accounts: Advisory Committee Reserve Fund Annual Town Meeting Capital Budget Committee Expense Insurance General Group Insurance Essex County Retirement Pension Unemployment Compensation Indemnification-Town Employee Industrial Commission- Expense Fourth of July Celebrations Patriotic and Civic Celebrations Council on Aging C~mf, unity Center Lease and Operation North Andover Historical Commission Grave Registration Vapor Recovery System Energy Conservation School Zone Eminent Domain-Sanitary Landfill Installing Devices- Bradstreet School Reserve For Encumbrances July 1, 1979 1,045 546 1,59! 39 Expenditures TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL FUND SCHEDULE OF EXPENDITURES AND ENCUMBRANCES COb~ARED WITH AUTHORIZATION (CONT'D) For the year ended June 30, 1980 Encumbrances Appropriation Cancelled 1980 ~penditures $ 1,560 $ 1,481 130,000 6,375 6,759 1,020 1,204 150,000 150,000 279,313 260,565 362,600 _~.;,~-~-- =~_=362,600 10,500 2,409 5,000 100 5,200 5,200 895 819 17,300 17,295 6,000 5,962 400 393 Transfers (Dr) 74 (118,913) 385 184 Cr SCHEDULE VII Encumbrances Prior Year Current Year 6 (18) 700 1.400 700 750 685 1,500 (1,470) 6,000 5,730 $ 85,213 $ 822,502 .(119,052.). $ 1,045 546 270 $ 270 Unencumbered Balance June 30, 1980 153 I1,087 1 18,748 8,091 5,000 100 76 11 20 7 65 30 43,389 ~TO~ OF NORTH ANDOVER, MASSACHUSETTS TRUST AND AGENCY FUNDS SCHEDULE OF EMPLOYEE WITHHOLDINGS For the year ended June 30~ 1980 Federal Withholding State Withholding Essex County Retirement Massachusetts Teachers Retirement Massachusetts Hospital Service Group Insurance United Fund Tax Shelter Annuity North Andover Credit Union Teachers' Union'Dues ~ Public Works Dues Fire Fighters Union Dues Fire Fighters Insurance Christmas Club Massachusetts Teachers Credit Union Accident Insurance Fund Balance July 1, 1979 951 (27) 3,258 3O 4,212 Deduction $ 1,172,433 346,719 149,367 209,752 157,242 4,094 1,967 56,752 283,163 32,463 4,048 3,538 2,546 22,365 111,265 4,83,2 $ 2,562,546 4O SCHEDULE VIII Payment to Agencies $ 1,172,433 346,719 149,367 209,752 158,514 4,067 1,967 56,420 279,222 32,463 4,048 3,538 2,546 21,950 111,265 4,742 $ 2,~5,59,q1~3 Fund Balance June 30, (321) 3,590 3,941 $ '7,74~ 1980 9O 445 SCHEDULE IX Inside Debt Limit: Sewer Bonds Fire Station Fire Engine Town Garage Sanitary Landfill Highway Bulldozer Outside Debt Limit: School Public Service Water Enterprise: Total: 41 TOWN OF NORTH ANDOVER, MASSACHUSETTS SERIAL BONDS PAYABLE For the year ended June 30, 1980 Original Interest Issue Maturity Balance Amount Rate Date Date Julx. 1, 19~9 $ 385,000 163,000 30,000 537,000 100,000 90,000 9,240,000 1,006,510 3.25Z-5.70% 9/58-6/80 8/81-11/86 6.10% 10/69 10/84 5.20% 11/78 11/83 5.1% - 5.8~ 10/74-12/75 10/79-12/80 5.1% 12/75 12/80 4.25~ 8/77 8/82 2.9% - 5.0/. 3.8%-6.17o 11/62-11/74 11/80-10/90 12/67-6/80 12180-11/83 115,000 60,000 30,000 120,000 40,000 70,000 435,009 4,995,000 486,000 5.916.000 Additions $ 40,000 ~40,000 · 60,~510 $ 100,5i0 Retirements 25,000 10,000 10,000 105,000 20,000 20,O0p 190,000 495,000 145}000 830.,000 Balance June 30, 1980 130,000 50,000 20,000 15,000 20,000 50,000. ~85,000' - 4,500,000 401,519 5,186.510 SCHEDULE X TOWN OF NORTH ANDOVER, MASSACHUSETTS GENERAL LONG-TERM DEBT-AMORTIZATION SCHEDULE June 30, 1980 Fiscal Year Ended June 30 1981 1982 1983 .... 1984 - 1991 Principal $ 760,510 671,000 605,000-_'_ "' 3,150,000' $ 5,186,510 ~- Amount Due Interest Total $ 246,271 $ 1,006,781 211,289 882,289 179,893:'-~ .623,893 3,77,3,893 $ 1,261,34~ $ 6,447,856 42 TOWN OF NORTH ANDOVER, MASSACHUSETTS DEBT ACCOUNT COMPUTATION OF LEGAL DEBT MARGIN June 30, 1980 Equalized Valuation - Personal Property and Real Estate Debt Limit - 5~ of Equalized Valuation Total Debt (Schedule X) Less Debt Outside Debt Limit $ 5,186,510 %901,510 Legal Debt Margin 43 SCHEDULE X1 $ 301,400,000 15,070,000 285,000 4,7 85,000