SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
Commission file number 333-12551
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Home Properties of New York Retirement Savings Plan
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B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Home Properties of New York, Inc.
850 Clinton Square
Rochester, New York 14604
REQUIRED INFORMATION
The Home Properties Retirement Savings Plan (the "Plan") is subject to the
Employee Retirement Security Income Act of 1974 ("ERISA"). Therefore, in lieu of
the requirements of Items 1-3 of Form 11-K, the financial statements and
schedules of the Plan for the two fiscal years ending December 31, 2001 and
2000, which have been prepared in accordance with the financial reporting
requirements of ERISA, are filed herewith as Exhibit 99.1 and incorporated
herein by reference.
EXHIBITS
Exhibit Number Description
------------------- ---------------
99-1 Financial Statement and Schedules of the Plan for
the two fiscal years ending December 31, 2001 and 2000
99-2 Consent of Insero, Kasperski, Ciaccia & Co., P.C.,
independent accountants
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
HOME PROPERTIES RETIREMENT SAVINGS PLAN
Date: June 28, 2002
By: /s/ David P. Gardner
Name: David P. Gardner
Title: Chairman of the Administrative Committee, the
Administrator of the Plan
EXHIBIT 99-1
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
FINANCIAL REPORT
DECEMBER 31, 2001
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
TABLE OF CONTENTS
Independent Auditors' Report 1
Statements of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4 - 7
Independent Auditors' Report on the Supplementary Information 8
Schedule of Assets Held for Investment Purposes at End of Year 9
Schedule of Reportable Transactions 10
INDEPENDENT AUDITORS' REPORT
To The Board of Trustees of
Home Properties Retirement Savings Plan
Rochester, New York
We have audited the accompanying statements of net assets available for benefits
of Home Properties Retirement Savings Plan as of December 31, 2001 and 2000, and
the related statement of changes in net assets available for benefits for the
year ended December 31, 2001. These financial statements are the responsibility
of the Plan'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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the 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 net assets available for benefits of the Plan as of
December 31, 2001 and 2000, and the change in net assets available for benefits
for the year ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States of America.
Respectfully Submitted,
/S/ Insero, Kasperski, Ciaccia & Co., P.C.
Insero, Kasperski, Ciaccia & Co., P.C.
Certified Public Accountants
Rochester, New York
May 20, 2002
Page 1
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2001 AND 2000
ASSETS 2001 2000
Investments at Fair Value
Money Market Funds $ 18,053 $ 28,052
Common Trust Funds - 4,750,334
Common Stock 984,719 636,416
Mutual Funds 7,684,612 1,324,175
Participant Notes 337,391 258,863
Total Investments at Fair Value 9,024,775 6,997,840
Receivables
Employer Contributions 701,571 612,253
Participant Contributions 144,955 115,263
Participant Loans 10,514 10,668
Other - 7,968
Total Receivables 857,040 746,152
Total Assets 9,881,815 7,743,992
Liabilities 2,667 479
Net Assets Available for Benefits $ 9,879,148 $ 7,743,513
See Notes to Financial Statements.
Page 2
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2001
ADDITIONS:
Additions to Net Assets Attributed to:
Interest and Dividends $ 90,525
Net Appreciation in Fair Value of
Investments 122,246
212,771
Contributions
Employer 750,903
Employee 1,890,348
Rollover 761,862
3,403,113
Total Additions 3,615,884
DEDUCTIONS:
Deductions from Net Assets Attributed to:
Benefits Paid to Participants 1,402,804
Excess Contributions Refunded to Participants 14,462
Administrative Expenses 62,983
Total Deductions 1,480,249
Net Change in Assets Available for Benefits 2,135,635
Net Assets Available for Benefits - Beginning 7,743,513
Net Assets Available for Benefits - Ending $ 9,879,148
See Notes to Financial Statements.
Page 3
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
Note 1 Description of Plan
The following description of the Home Properties Retirement Savings
Plan(the Plan) is provided for general information purposes only.
Participants should refer to the Plan document, as amended, for a more
complete description of the Plan's provisions.
General
The Plan is a defined contribution plan covering all employees of Home
Properties of New York, Inc. who are 21 years of age or older and who have
completed one year of service. Effective October 23, 2000, the Plan was
amended to change the service requirement to a waiting period of no more
than one month. It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Exeter Trust acts as the Trustee of the Plan. State Street Bank and Trust
serves as the custodian and Burke Group serves as the third party
administrator for the Plan.
Contributions
Each year, participants may contribute up to 15 percent of pretax annual
compensation and separate elective deferrals out of any bonus, up to 100%
of each bonus, subject to statutory limitations, as defined in the Plan.
Participants may also contribute amounts representing distributions from
other qualified defined benefit or defined contribution plans. Participants
direct the investment of their contributions into various investment
options offered by the Plan. The Plan currently offers eight investment
options for participants. The Company contributes 75% of salary-reduction
contributions up to a maximum of 3% of participant compensation. Additional
profit sharing amounts may be contributed at the option of the Company's
board of directors. Contributions are subject to certain limitations.
Participant Accounts
A separate account is maintained for each of the participants. Each
participant's account is credited with an allocation of: (1) his or her tax
deferred contribution, (2) the company's contributions, (3) Plan earnings,
and (4) forfeitures of terminated participants' non-vested accounts.
Allocations are based on participant earnings or account balances, as
defined. The benefit to which a participant is entitled is the benefit that
can be provided from the participant's account.
Vesting
Participants are immediately vested in their contributions plus actual
earnings thereon. The Plan provides for vesting in the employer
contribution account of 20% after two years, 40% after three years, 60%
after four years, 80% after five years, and 100% after six years of
service.
Page 4
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
Note 1 Description of Plan - Continued
Participant Loans
Participants may borrow from their accounts a minimum of $1,000 to a
maximum equal to the lessor of $50,000 or 50% of their vested account
balance. Loan terms range from one to five years, or longer for the
purchase of a primary residence. The loans are collateralized by the
balance in the participant's account and bear interest at the prime rate
plus one percent (1%) in effect on the first day of the month in which the
loan is made. Interest rates range from 5.75% to 10.5% for the current
outstanding notes. Principal and interest is paid ratably through weekly or
semi-monthly payroll deductions.
Payment of Benefits
The Plan provides for normal retirement benefits upon reaching age 65 and
has provisions for early retirement, disability, death and termination
benefits for those participants who are eligible to receive such benefits.
On termination of service, a participant may elect to receive:
(1) A lump sum amount equal to the value of his or her account, or
(2)Annual installments over a period of time not to exceed 15 years.
Forfeitures
In accordance with the Plan document, forfeitures of non-vested employer
contributions are used to reduce future employer contributions. At December
31, 2001 and 2000, forfeited non-vested accounts totaled approximately
$39,574 and $41,927, respectively.
Reclassification
To conform with financial statement groupings in 2001, certain items
reported in 2000 have been reclassified for comparative purposes. This
reclassification has no effect on changes in net assets for 2000.
Note 2 Significant Accounting Policies
Basis of Accounting
The accompanying financial statements and supplemental schedules have been
prepared on the accrual basis of accounting.
Plan Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the
financial statements and revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Page 5
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
Note 2 Significant Accounting Policies - Continued
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the
net asset value of shares held by the Plan at year-end. Quoted market
prices are used to value investments. Participant notes receivable are
valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a settlement-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded on
the date received.
Payment of Benefits
Benefits are recorded when paid.
Note 3 Investments
The following presents investments that represents 5 percent or more of the
Plan's net assets:
December 31,
2001 2000
Home Properties of New York, Inc.
31,162 and 22,780 shares, respectively $ 984,719 $ 636,416
Stable Income Collective Investment Trust,
-0- and 59,970 shares, respectively $ - $ 787,999
All-Equity Collective Investment Trust,
-0- and 95,038 shares, respectively $ - $ 1,416,069
Reduced Volatility Collective Investment Trust,
-0- and 52,730 shares, respectively $ - $ 842,099
Long-Term Growth Collective Investment Trust,
-0- and 94,729 shares, respectively $ - $ 1,704,166
Vanguard Index S&P 500 Portfolio,
13,455 and 8,735 shares, respectively $ 1,424,743 $ 1,064,492
Vanguard Small Cap Index Fund,
29,781 and -0- shares, respectively $ 590,253 $ -
Exeter Blended Assets Series I,
94,961 and -0- shares, respectively $ 1,037,923 $ -
Exeter Blended Asset Series II,
147,803 and-0- shares, respectively $ 1,933,266 $ -
Exeter Maximum Horizons Class A
102,400 and -0- shares, respectively $ 1,382,395 $ -
Federated Capital Preservation Fund,
94,604 and -0- shares, respectively $ 1,312,171 $ -
Page 6
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
Note 3 Investments - Continued
During 2001, the Plan's investments (including investments bought, sold and
held during the year) appreciated (depreciated) in value as follows:
Net Appreciation (Depreciation) in Fair Value
Common Stock $ 108,189
Mutual Funds 16,724
Other (2,667)
Net Appreciation (Depreciation) in Fair Value $ 122,246
Note 4 Related-Party Transactions
Certain Plan investments are shares of common stock of Home Properties of
New York, Inc., the Plan Sponsor. Therefore, this investment qualifies as a
party-in-interest. The common stock is valued at its quoted market price.
Note 5 Plan Termination
Although the Company has not expressed any intent to do so, the Company has
the right under the Plan to discontinue contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their accounts and all
plan assets would be distributed to participants.
Note 6 Tax Status
In October, 1993, the Company adopted a prototype plan which received a
favorable determination letter from the Internal Revenue Service in April,
1993 stating that the Plan qualifies under the applicable provisions of the
Internal Revenue Code, including Section 401(k). The Plan has been amended
since receiving the determination letter. However, the Plan administrator
and the Plan's tax counsel believe that the plan is currently designed and
being operated in compliance with the applicable requirements of the Code.
Therefore, they believe that the Plan was qualified and the related trust
was tax-exempt as of the financial statement date.
Note 7 Subsequent Event
In January, 2002 the plan changed their trustee and custodian to Fidelity
Investments.
Page 7
INDEPENDENT AUDITORS' REPORT
ON THE SUPPLEMENTARY INFORMATION
To the Board of Trustees of
Home Properties Retirement Savings Plan
Rochester, New York
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary schedules of assets
held for investment purposes at end of year and, reportable transactions, as of
or for the year ended December 31, 2001, are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Respectfully Submitted,
/S/ Insero, Kasperski, Ciaccia & Co., P.C.
Insero, Kasperski, Ciaccia & Co., P.C.
Certified Public Accountants
Rochester, New York
May 20, 2002
Page 8
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
EIN#: 16-1455130-PLAN #001
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
DECEMBER 31, 2001
a b c d e
Description of Investment
Including Maturity Date, Rate of
Interest, Collateral, Par of
Identity of Issue, Borrower, Maturity Value Cost Current Value
Lessor of Similar Party
Money Market Funds
SSGA Funds - U.S. Treasury MMF 18,067 Shares $ 18,067 $ 18,053
>>
Corporate Stocks
Home Properties of
New York, Inc. 31,162 Shares 886,189 984,719
Mutual Funds
Vanguard Small Cap
Index Fund 29,781 Shares 596,911 590,253
Vanguard Index S&P
500 Portfolio 13,455 Shares 1,608,264 1,424,743
Vanguard Bond
Index Fund 381 Shares 3,911 3,861
Federated Capital
Preservation Fund 94,605 Shares 1,241,323 1,312,171
Exeter Blended
Asset Series I 94,961 Shares 1,027,528 1,037,923
Exeter Blended
Asset Series II 147,803 Shares 1,912,698 1,933,266
Exeter Maximum Horizons
Class A 102,400 Shares 1,373,180 1,382,395
7,763,815 7,684,612
Participant Loans
Participant Notes Interest ranging from
5.75% to 10.5%,
Due From January,
2002 through November
2007. Collateralized by
remaining balance of
participant's account. 337,391 337,391
Total Assets Held for Investment Purposes $9,005,462 $9,024,775
Page 9
HOME PROPERTIES
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
EIN#: 16-1455130 PLAN #001
SCHEDULE H, LINE 4j - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
None
Page 10
EXHIBIT 99-2
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement
on Form S-8 to be filed by Home Properties of New York, Inc. with respect to the
Home Properties Retirement Savings Plan of our report dated May 20, 2002, with
respect to the financial statements and schedules of the Home Properties
Retirement Savings Plan included in this Annual Report (Form 11-K) for the year
ended December 31, 2001.
Sincerely,
/S/ Insero, Kasperski, Ciaccia & Co., P.C.
Insero, Kasperski, Ciaccia & Co., P.C.
Certified Public Accountants
Rochester, New York
June 24, 2002