ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2003
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2003
INDEX
Page
INDEPENDENT AUDITORS' REPORT 1-2
FINANCIAL STATEMENTS
Statement of Net Assets Available for
Benefits, December 31, 2003 3-4
Statement of Net Assets Available for
Benefits, December 31, 2002 5
Statement of Changes in Net Assets
Available for Benefits, Year
Ended December 31, 2003 6-8
Notes to the Financial Statements 9-18
SUPPLEMENTAL SCHEDULE
Schedule of Assets Held for Investment Purposes 19
Independent Auditors' Report
Participants, Board of Trustees and
Administrator of Artesian Resources Corporation
Retirement Plan
We have audited the accompanying statements of net assets available for benefits
of Artesian Resources Corporation Retirement Plan as of December 31, 2003 and
2002, and the related statement of changes in net assets available for benefits
for the year ended December 31, 2003. 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 an 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 Artesian
Resources Corporation Retirement Plan as of December 31, 2003 and 2002, and the
changes in net assets available for plan benefits for the year ended December
31, 2003 in conformity with accounting principles generally accepted in the
United States of America.
Independent Auditors' Report (Cont'd.)
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements but is 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 fund information in the statements
of net assets available for plan benefits and the statement of changes in net
assets available for plan benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
changes in net assets available for plan benefits of each fund. The supplemental
schedule and fund information 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.
/s/ McBride, Shopa & Co.
Wilmington, Delaware
June 23, 2004
- 2 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31, 2003
Participant Directed
----------------------------------------------------------------------------------------------------------
Growth Fund Columbia Gartmore Lord Abbett
Columbia of America Mid Cap Calamos Dodge & Cox Dodge & Cox Morley Mid-Cap
Acorn Z A Value A Growth A Balanced Stock Stable Adv Value A
-------- ------------ -------- -------- ----------- ----------- ---------- -----------
Assets:
Cash $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Registered Investment
Companies 284,331 3,322,330 27,782 234,059 28,946 2,018,405 1,078,085 157,086
Employer Securities -- -- -- -- -- -- -- --
Participant Loans -- -- -- -- -- -- -- --
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Total Investments 284,331 3,322,330 27,782 234,059 28,946 2,018,405 1,078,085 157,086
Amount due from employer -- 43,794 -- -- -- 15,264 -- --
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Net assets available
for benefits $ 284,331 $ 3,366,124 $ 27,782 $ 234,059 $ 28,946 $ 2,033,669 $ 1,078,085 $ 157,086
========= =========== ======== ========= ======== =========== =========== =========
See accompanying notes to the financial statements.
- 3 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31, 2003
Participant Directed
---------------------------------------------------------------------------------------------------------
PIMCO Royce
Total Low- Managed Artesian
Davis NY Return Priced Templeton Liquidity Income Resources Participant
Venture A Admin Stock Foreign R Fund Portfolio Corp. A Loans Total
--------- ------ -------- --------- --------- --------- --------- ----------- -------
Assets:
Cash $ -- $ -- $ -- $ -- $ 14,691 $ 8,833 $ -- $ -- $ 23,524
Registered Investment
Companies 3,602,722 988,513 222,538 735,866 -- -- -- -- 12,700,663
Employer Securities -- -- -- -- -- -- 1,776,875 -- 1,776,875
Participant Loans -- -- -- -- -- -- -- 333,577 333,577
----------- --------- --------- --------- -------- ------- ----------- --------- ------------
Total Investments 3,602,722 988,513 222,538 735,866 14,691 8,833 1,776,875 333,577 14,834,639
Amount due from employer -- -- -- 43,793 31,725 -- -- -- 134,576
----------- --------- --------- --------- -------- ------- ----------- --------- ------------
Net assets available
for benefits $ 3,602,722 $ 988,513 $ 222,538 $ 779,659 $ 46,416 $ 8,833 $ 1,776,875 $ 333,577 $ 14,969,215
=========== ========= ========= ========= ======== ======= =========== ========= ============
See accompanying notes to the financial statements.
- 4 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31, 2002
Participant Directed
------------------------------------------------------------------------------------------------------
Fidelity Family of Mutual Funds
------------------------------------------------------------------------------------------------------
Managed
Equity Aggressive Income Intermediate Diversified Artesian
Income II Growth Puritan Portfolio Bond Int'l A
--------- ---------- ------- --------- ------------ ----------- --------
Assets:
Cash $ 15,983 $ 7,360 $ 1,426 $ 27,924 $ 116,257 $ 3,487 $ 269
Investments, at fair
value--Common/
Collective Trusts -- -- -- 980,704 -- -- --
Registered Investment
Companies 3,625,183 2,320,725 878,297 -- 877,495 434,607 --
Employer Securities -- -- -- -- -- -- 1,122,290
Participant Loans -- -- -- -- -- -- --
----------- ----------- --------- ----------- --------- --------- -----------
Total Investments 3,641,166 2,328,085 879,723 1,008,628 993,752 438,094 1,122,559
Amount due from employer -- -- -- 69,680 -- -- 15,714
----------- ----------- --------- ----------- --------- --------- -----------
Net assets available
for benefits $ 3,641,166 $ 2,328,085 $ 879,723 $ 1,078,308 $ 993,752 $ 438,094 $ 1,138,273
=========== =========== ========= =========== ========= ========= ===========
Participant
Loans Total
----------- ---------
Assets:
Cash $ -- $ 172,706
Investments, at fair
value--Common/
Collective Trusts -- 980,704
Registered Investment
Companies -- 8,136,307
Employer Securities -- 1,122,290
Participant Loans 320,720 320,720
--------- ------------
Total Investments 320,720 10,732,727
Amount due from employer -- 85,394
--------- ------------
Net assets available
for benefits $ 320,720 $ 10,818,121
========= ============
See accompanying notes to the financial statements.
- 5 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2003
Participant Directed
-------------------------------------------------------------------------------------------
Fidelity Family of Mutual Funds
-------------------------------------------------------------------------------------------
Managed
Equity Income Aggressive Income Intermediate Diversified
II Growth Puritan Portfolio Bond International
------------- ---------- ------- --------- ------------ -------------
Additions to Net Assets
attributed to:
Investment income: Net
appreciation
(depreciation) of
investments $ 195,956 $ 99,549 $ 23,369 $ -- $ (4,088) $ 7,091
Dividends -- -- -- -- 699 --
Interest -- -- -- 15,007 -- --
Contributions
Participants -- -- -- -- -- --
Employer -- -- -- (69,680) -- --
------------ ------------ ---------- ------------ ---------- ----------
195,956 99,549 23,369 (54,673) (3,389) 7,091
Deductions from Net Assets
attributed to:
Administrative expenses -- 2,596 -- -- -- 17
Participant distributions 15,983 7,360 1,426 3,215 116,257 3,487
------------ ------------ ---------- ------------ ---------- ----------
Total deductions 15,983 9,956 1,426 3,215 116,257 3,504
------------ ------------ ---------- ------------ ---------- ----------
Net increase (decrease)
prior and inter-fund
transfers 179,973 89,593 21,943 (57,888) (119,646) 3,587
Inter-fund transfers (3,821,139) (2,417,678) (901,666) (1,011,587) (874,106) (441,681)
------------ ------------ ---------- ------------ ---------- ----------
Net increase (decrease) in
plan assets (3,641,166) (2,328,085) (879,723) (1,069,475) (993,752) (438,094)
Net assets available for
benefits-beginning of
year 3,641,166 2,328,085 879,723 1,078,308 993,752 438,094
------------ ------------ ---------- ------------ ---------- ----------
Net assets available for
benefits-end of year $ -- $ -- $ -- $ 8,833 $ -- $ --
============ ============ ========== ============ ========== ==========
See accompanying notes to the financial statements.
- 6 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2003
Participant Directed
---------------------------------------------------------------------------------------------------------
Growth Fund Columbia Gartmore Lord Abbett
Columbia of America Mid Cap Calamos Dodge & Cox Dodge & Cox Morley Mid-Cap
Acorn Z A Value A Growth A Balanced Stock Stable Adv Value A
-------- ------------ -------- -------- ----------- ----------- ---------- -----------
Additions to Net Assets
attributed to:
Investment income: Net
appreciation
(depreciation) of
investments $ 71,851 $ 752,448 $ 4,183 $ 55,394 $ 3,127 $ 427,403 $ 23,966 $ 32,202
Dividends 252 820 -- -- 635 39,653 -- 2,326
Interest -- -- -- -- -- -- -- --
Contributions
Participants 18,406 192,375 7,742 30,742 13,281 91,554 54,600 20,392
Employer 30,401 136,335 2,661 33,924 4,212 77,352 60,930 8,340
--------- ----------- -------- --------- -------- ----------- ----------- ---------
120,910 1,081,978 14,586 120,060 21,255 635,962 139,496 63,260
Deductions from Net Assets
attributed to:
Administrative expenses -- -- -- -- -- -- -- --
Participant distributions 5,104 113,515 46 3,928 2,164 27,419 65,489 3,389
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Total deductions 5,104 113,515 46 3,928 2,164 27,419 65,489 3,389
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Net increase (decrease)
prior to inter-fund
transfers 115,806 968,463 14,540 116,132 19,091 608,543 74,007 59,871
Inter-fund transfers 168,525 2,397,661 13,242 117,927 9,855 1,425,126 1,004,078 97,215
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Net increase (decrease) in
plan assets 284,331 3,366,124 27,782 234,059 28,946 2,033,669 1,078,085 157,086
Net assets available for
benefits-beginning of
year -- -- -- -- -- -- -- --
--------- ----------- -------- --------- -------- ----------- ----------- ---------
Net assets available for
benefits-end of year $ 284,331 $ 3,366,124 $ 27,782 $ 234,059 $ 28,946 $ 2,033,669 $ 1,078,085 $ 157,086
========= =========== ======== ========= ======== =========== =========== =========
See accompanying notes to the financial statements.
- 7 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2003
Participant Directed
-------------------------------------------------------------------------------------------------------
PIMCO Royce
Total Low- Artesian
Davis NY Return Priced Templeton Liquidity Resources Participant
Venture A Admin Stock Foreign R Fund Corp. A Loans Total
--------- ------ -------- --------- --------- --------- ----------- -------
Additions to Net Assets
attributed to:
Investment income: Net
appreciation
(depreciation) of
investments $ 772,181 $ 2,779 $ 61,984 $ 148,794 $ -- $ 496,554 $ -- $ 3,174,743
Dividends 23,935 42,182 958 12,138 48,567 -- -- 172,165
Interest -- -- -- -- -- -- 23,279 38,286
Contributions
Participants 117,597 82,734 19,533 30,449 71,163 -- -- 750,568
Employer 151,832 101,658 29,653 64,605 43,435 (16,075) -- 659,583
----------- --------- --------- --------- ----------- ----------- --------- ------------
1,065,545 229,353 112,128 255,986 163,165 480,479 23,279 4,795,345
Deductions from Net Assets
attributed to:
Administrative expenses -- -- -- -- -- -- -- 2,613
Participant distributions 136,410 21,822 4,142 22,994 8 62,163 25,317 641,638
----------- --------- --------- --------- ----------- ----------- --------- ------------
Total deductions 136,410 21,822 4,142 22,994 8 62,163 25,317 644,251
----------- --------- --------- --------- ----------- ----------- --------- ------------
Net increase (decrease)
prior and inter-fund
transfers 929,135 207,531 107,986 232,992 163,157 418,316 (2,038) 4,151,094
Inter-fund transfers 2,673,587 780,982 114,552 546,667 (116,741) 220,286 14,895 --
----------- --------- --------- --------- ----------- ----------- --------- ------------
Net increase (decrease) in
plan assets 3,602,722 988,513 222,538 779,659 46,416 638,602 12,857 4,151,094
Net assets available for
benefits-beginning of
year -- -- -- -- -- 1,138,273 320,720 10,818,121
----------- --------- --------- --------- ----------- ----------- --------- ------------
Net assets available for
benefits-end of year $ 3,602,722 $ 988,513 $ 222,538 $ 779,659 $ 46,416 $ 1,776,875 $ 333,577 $ 14,969,215
=========== ========= ========= ========= =========== =========== ========= ============
See accompanying notes to the financial statements.
- 8 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
NOTE 1 DESCRIPTION OF THE PLAN
GENERAL
Effective July 1, 1984, Artesian Resources Corporation (the
"Company") established the Artesian Resources Corporation
Retirement Plan (the "Plan") as a defined contribution
retirement plan for its employees. Pursuant to Internal
Revenue Code ("IRC") Section 401(k), the Plan permits
employees to exclude contributions to the Plan from their
current taxable income, subject to certain limits. The Plan is
administered by a Committee of Trustees, which consists of
five members appointed by the Company's Board of Directors.
Plan administration expenses may be paid out of the plan
unless paid by the Company. The Company paid all such expenses
incurred during 2003.
PARTICIPATION, VESTING AND WITHDRAWALS
Generally, all employees are eligible for Plan participation
after attaining age 21 and completing 1,000 hours of service
during a one-year period. Employees may elect to make
tax-deductible contributions up to a maximum of 15 percent of
their compensation; however, such contributions may not exceed
the IRC limitation of $12,000 ($14,000 for participants age 55
and older) for all deferrals under all plans in 2003 (basic
contribution). For every dollar an employee contributes up to
6 percent of compensation, the Company will provide a 50
percent matching contribution. In each Plan year, the Company
may make a discretionary contribution to the Plan based on up
to 2 percent of compensation for all employees eligible to
participate in the Plan. The full discretionary contribution
was made for 2003.
- 9 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
DESCRIPTION OF THE PLAN (CONT'D.)
PARTICIPATION, VESTING AND WITHDRAWALS (CONT'D.)
The Company's Board of Directors, at its sole discretion, may
make an additional discretionary contribution. No additional
discretionary contributions were made for 2003.
Participant contributions, and the related earnings, are fully
vested. Company contributions, and the related earnings, vest
as follows:
Years of Service Vested Percentage
---------------- -----------------
Less than 2 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 years or more 100%
Any forfeitures of non-vested contributions are offset against
required Company contributions. Withdrawals may generally
commence without penalty upon attaining age 59 1/2 or for
situations involving hardship, as defined in the Plan and the
IRC.
The Company also sponsored another defined contribution plan
for its employees, the Supplemental Plan, which was merged
into the Plan on March 31, 2000. The contribution and vesting
guidelines for the participants of the Supplemental Plan
continued and consist of the following:
- 10 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
DESCRIPTION OF THE PLAN (CONT'D.)
PARTICIPATION, VESTING AND WITHDRAWALS (CONT'D.)
o Only employees as of April 26, 1994 are eligible for
participation.
o A service contribution is made by the Company to the
Plan for all eligible participants each quarter based
upon each employee's years of service and current
compensation in accordance with the following
schedule:
Years of Service % of Compensation
---------------- -----------------
1-5 2%
6-10 4%
11-20 5%
over 20 6%
o Participant contributions, and the related earnings
thereon, are fully vested at all times. Company
contributions, and the related earnings thereon, vest
as follows:
Years of Service Vested Percentage
---------------- -----------------
Less than 2 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 years or more 100%
o Forfeitures are offset against required Company
contributions. Any participant who separates from the
Company for any reason, shall be entitled to receive
the vested interest in their account.
- 11 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
DESCRIPTION OF THE PLAN (CONT'D.)
INVESTMENT ELECTIONS
Participants may allocate basic and matching contributions
among the various mutual fund investments and/or Artesian
Resources Class A non-voting common stock.
Participants may elect an allocation among one or more of the
investment funds in multiples of one (1) percent with a
minimum investment of one (1) percent in any selected fund.
Discretionary Company contributions are invested by the
Trustee in a uniform manner for all participants.
LOANS
Participants may borrow from the Plan under the following
guidelines:
- A participant may borrow as much as 50 percent of his
or her account balance, subject to certain minimum and
maximum limitations as defined in the Plan.
- Loans are repaid over a period not to exceed 5 years,
unless the loan is to buy, build or substantially
rehabilitate the borrower's principal residence.
- The participant's account balance is secured as
collateral when the loan is executed. If a participant
defaults on a loan, the loan is treated as a
distribution from the plan to the participant.
- 12 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
DESCRIPTION OF THE PLAN (CONT'D.)
LOANS (CONT'D.)
- Interest rates on loans are prime plus one percent at
the date of the loan.
- As loans are repaid to the plan, the total payment,
principal plus interest, is credited back to the
participants account.
As disclosed in the Statement of Changes in Net Assets
Available for Benefits, the net interfund transfer into
Participant Loans for the year ended December 31, 2003 was
made up of:
2003
--------
New loans $131,589
Loan repayments (93,415)
Transfer of interest income (23,279)
--------
$ 14,895
========
BENEFITS
Participants are entitled to a benefit payment equal to the
amount credited to their accounts upon retirement, upon
permanent disability, at age 59 1/2, or upon termination of
employment or death. In the event of death of a participant, a
death benefit payment is made to the participant's
beneficiary. In the event of termination, distributions of
less than $5,000 must be made in a lump sum. All other
distributions may be made in the form of a joint and survivor
annuity, installments or in a lump sum subject to certain
restrictions as defined in the Plan.
- 13 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
DESCRIPTION OF THE PLAN (CONT'D.)
TERMINATION
The Company may amend or terminate the Plan. In the event of
Plan termination, the accounts of all participants affected
shall become fully vested and nonforfeitable. Assets remaining
in the Plan may be immediately distributed to the
participants, inactive participants and beneficiaries in
proportion to their respective account balances; or the trust
may be continued with distributions made at such time and in
such manner as though the Plan had not been terminated.
CHANGE IN AVAILABLE FUNDS AND RECORDKEEPERS
During 2002, the Plan's Committee of Trustees unanimously
approved changing the investment funds and third-party
administrators (TPA). On January 7, 2003, the funds were sold,
and most of the cash was transferred to the new TPA as of
December 31, 2003, $8,833 remained in Fidelity Cash Reserves
of the Fidelity Managed Income Portfolio (the former TPA).
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
For financial reporting purposes, the assets and liabilities
of the Plan are reflected on the accrual basis of accounting.
- 14 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
USE OF ESTIMATES
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
of America requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
Plan assets held in mutual fund investments and Artesian
Resources Corp. Class A non-voting common stock are unsecured
and are valued at fair value based on quoted market prices.
In accordance with the policy of stating investments at fair
value, net unrealized appreciation (depreciation) for the year
is included in the statement of changes in net assets
available for benefits. Participant loans are valued at cost
which approximates fair value.
Purchases and sales of securities are recorded on a trade-date
basis. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date.
- 15 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
PARTICIPANT DISTRIBUTIONS
Participant distributions are recorded when paid.
INCOME TAXES
The Internal Revenue Service has determined and informed the
Company by a letter dated March 19, 2002, that the original
Plan plus amendments is qualified and the trust established
under the Plan is tax-exempt, under the appropriate sections
of the Internal Revenue Code.
NOTE 3 CREDIT RISK
The Plan has $23,524 in mutual fund money market accounts at
December 31, 2003 ($172,706 in 2002). These funds are fully
insured by the Securities Investor Protection Corporation
(SIPC).
NOTE 4 MARKET RISK
All investments in the Plan, including holdings in Artesian
"A" Common Stock, are subject to market risk.
- 16 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
NOTE 5 INVESTMENTS REPRESENTING 5% OR MORE OF NET ASSETS
AVAILABLE FOR BENEFITS
The following investments each represent 5% or more of the net
assets available for benefits at December 31, 2003:
American Funds Growth Fund of America A
Dodge & Cox Stock
Gartmore Morley Stable Adv
Davis NY Venture
PIMCO Total Return Admin
Templeton Foreign R
Artesian "A" Common Stock
Amounts allocated to withdrawing participants are reported on
the Schedule H of Form 5500 for benefit claims that have been
processed and approved for payment prior to December 31st but
not yet paid as of that date.
NOTE 6 RECONCILIATION OF FINANCIAL STATEMENTS TO SCHEDULE H
OF FORM 5500
The following is a reconciliation of net assets available for
benefits per the financial statements at December 31, 2003 and
2002 to Schedule H of Form 5500:
- 17 -
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2003
RECONCILIATION OF FINANCIAL STATEMENTS TO SCHEDULE H
OF FORM 5500 (CONT'D.)
2003 2002
----------- -----------
Net assets available
for benefits per the
financial statements $14,969,215 $10,818,121
Amounts allocated to
withdrawing participants (5,044) (153,040)
----------- -----------
Net assets available for
benefits per Schedule H
to the Form 5500 $14,964,171 $10,665,081
=========== ===========
The following is a reconciliation of benefits paid to
participants per the financial statements for the year ended
December 31, 2003 to Schedule H of Form 5500:
Benefits paid to participants
per the financial statements $ 641,638
Add: Amounts allocated to
withdrawing participants at
December 31, 2003 5,044
Less: Amounts allocated to
withdrawing participants at
December 31, 2002 (153,040)
-----------
Benefits paid to participants
per Schedule H of Form 5500 $ 493,642
===========
- 18 -
SUPPLEMENTAL SCHEDULE
ARTESIAN RESOURCES CORPORATION
RETIREMENT PLAN
EIN: 51-0002090, PLAN NO.: 003
SCHEDULE H, PART IV, LINE 4i: SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES AT END OF YEAR
AS OF DECEMBER 31, 2003
(a) (b) Identity of issue, borrower, (c) Description of investment including maturity date, (e) Current
lessor or similar party rate of interest, collateral, par or maturity value (d) Cost Value
---------------------------- --------------------------------------------------- -------- -----------
Invesmart Mutual Fund Columbia Acorn Z $ 214,386 $ 284,331
Selections Growth Fund of America A 2,598,763 3,322,330
Columbia Mid Cap Value A 23,853 27,782
Calamos Growth A 183,664 234,059
Dodge & Cox Balanced 25,972 28,946
Dodge & Cox Stock 1,594,571 2,018,405
Gartmore Morley Stable Adv 1,055,077 1,078,085
Lord Abbett Mid-Cap Value A 125,816 157,086
Davis NY Venture 2,816,598 3,602,722
PIMCO Total Return Admin 988,168 988,513
Royce Low-Priced Stock 163,744 222,538
Templeton Foreign R 584,227 735,866
Fidelity Cash Reserves 8,833 8,833
Invesmart Liquidity Fund 14,691 14,691
----------- -----------
Total mutual funds 10,398,363 12,724,187
* Artesian Resources Corporation Class A non-voting common stock 1,337,774 1,776,875
Participant Loans Interest rates range from 5.00% to 10.50%,
can borrow up to 50% of account balance,
repayment terms range from 5 to 15 years,
secured by account balance - 333,577
----------- -----------
$11,736,137 $14,834,639
=========== ===========
* Identifies the party as a "Party in Interest".
- 19 -