FinancialReport. ConsolidatedWaterworksDistrictNo.1. oftheparishofterebone, StateofLouisiana. June30,198

Transcription

1 OF/ DNOTSENOUT FILECIAI. CIPY (Xeroxi~ece.~,saty copiesfromthis COpyandPLACE BACKiRtILE) '7oo~q7 5Jd? FinancialReport ConsolidatedWaterworksDistrictNo.1 oftheparishofterebone, StateofLouisiana June30,198 Underprovisionsofstatelaw:this reportisapublicdocurltei~.a copyoftilereporth~sbe~.r~submittedtothemlr.iterj,ur~eviewe,.q, eatityandother~propciatepublic (;ficia!s.fherepe~lis~vailab~efor publicinspectionatthe~'~alon RougeoficeoitheLegislativeAuditorand,where,ap!?,rop~iate,athe oficeoftheparishclerkofcoud. Rele:~.,{:bate-4;i~'~.~-'i~[~-

2 TABLEOFCONTENTS ConsolidatedWaterworksDistrictNo.1oftheParishofTerebone, StateofLouisiana June30,198 IntroductorySection ExhibitsNumber Page TitlePage TableofContents FinancialSection IndependentAuditor'sReport GeneralPurposeFinancialStatements 1-2 BalanceShet StalememofRevenues,ExpensesandChangesinRetained A 3-4 Earnings(BudgetandActual) B 5 StatementsofCashFlows C 6 Notes1oFinancialStatements D 7-19 SuplementaryInformationSection SchedulesNumber Page ScheduleofOperatingRevenues ScheduleofDepartmentalExpenses ScheduleofNon-OperatingRevenues(Expenses) 27

3 TABLEOFCONTENTS (Continued) SuplementaryInformationSection(Continued) ScheduleofProperty,PlantandEquipment ScheduleofCashReceiptsandDisbursements-RestrictedAcounts RcquiredbyRevenueBondOrdinances ScheduleofInsuranceinForce(Unaudited) WaterCustomers(Unaudited) SpecialReportofCertifiedPublicAcountants ReportonComplianceandonInternalControlOverFinancialReporting BasedonanAuditoftheGeneral-PurposeFinancialStatements PerformedinAcordancewithGovernmentAuditineStandards ScheduleofFindings ReportsByManagement ScheduleofPriorYearFindings Managcment'sCorectionActionPlan Page SchedulesNumber

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7 Cureul BALANCESHET ConsolidatedWaterworksDistrictNo.1oftheParishofTerebone StateofLouisiana Cashandcashequivalents Acountsreceivable: Customers Unbiledwatersales Other Interestreceivable Inventories Prepaidinsurance Prepaidmaintenance Deferedcharge-bondisuancecost Deferedcharge-costofconsolidation Totalcurentasets Restricted MeterDepositFund: Cashandcashequivalents RevenueBondSinkingFund: Cashandcashequivalents BondReserveFund: Cashandcashequivalents Certificateofdeposit DepreciationandContingenciesFund Cashandcashequivalents ConstructionFund-198: Cashandcashequivalents Interestreceivable ConstructionFund: Cashandcashequivalents Interestreceivable June30,198 GroupInsuranceFund: Cashandcashequivalents Reimbursementduefrominsurancecompany Totalrestrictedasets Noneurent Prepaidmaintenance Deferedcharge-bondisuancecost Deferedcharge-costofconsolidation Totalnoncurentasets Property,PlantandEquipment-Net Totalasets Senotestofinancialstatements $5,324, , ,984 8,815 19, ,591 10, ,478 27, ,378,963 1,321,40 706, ,268,538 1,39,148 6,890,78 26,313 1,691,850 3,4 217, , , ,170 53_ $75,943,07

8 L1ABILrI'IES Cm'rent Payablefromcurentasets: Acountspayableandacruedexpenses Contractspayable Totalcurentliabilitiespayablefromcurentasets Payablefromrestrictedasets: Acountspayableandacruedexpenses GroupInsuranceFund ConstructionFund-198 Contractspayable: ConstructionFund-198 Acruedinterestonbonds Bondspayablewithinoneyear(netof $39,49unamortizedbondiscount) Meterdeposits Totalcurentliabilitiespayablefromrestrictedasets Totalcurentliabilities Long-term Bondedebt(netof$340,4unamortizedbondiscount) Totaliabilities ContributedCapital RetainedEarnings Reservedfor: Revenuebondebtservice Renewalandreplacement Groupinsurance Totalreserves Unreserved Totalretainedearnings Totalfundequity Totaliabilitiesandfundequity 4 204,785 93, ,848 50,025 25, , ,51 1,321,40 2,610,03 2,908,078 23,289, _ ,057,972 1,39, ,658,174 3,021, $75,943,07 ExhibitA

9 STATEMENTOFREVENUES.EXPENSESANDCHANGESIN RETAINEDEARNINGS(BUDGETANDACTUAL ConsolidatedWaterworksDistrictNo.1oftheParishofTerebon StateofLouisiana OPERATINGREVENUES Revenuesfromwatersales andservicecharges OPERATINGEXPENSES Personalservices Supliesandmaterials Otherservicesandcharges Depreciationandanaortization Totaloperatingexpenses Operatingincome FortheyearendedJune30,198 NON-OPERATINGREVENUES(EXPENSES) Investmentincome Serviceagremeflts Othernon-operatingrevenues Bondinterest Amortizationofbondiscountandisuancecost Amortizationofcostofconsolidation Budget Actua $8,969,50$9,240,475 2,537,50 952,50 2,02.4,30 1,91, ,0 98,0 15,0 (965,786) (50,795) (8,518) 2,528, ,857 2,016, , ~024 53,82 106,423 26,573 (965,786) (50,795) Totalnon-operatingrevenue(expenses) (512,09)(38,21) NETINCOME RETAINEDEARNINGS Beginingofyear Endofyear Senolestofinancialstatements 5 951,958 1,435,803 4,243,948 $5,679,751

10 STATEMENTOFCASHFLOWS ConsolidatedWaterworksDistrictNo.1oftheParishofTerebone, StateofLouisiana FortheyearendedJune30,198 CAS]IFLOWSFROMOPERATINGACTIVITIES Operatingincome Adjustmentstoreconcileoperatingincometonetcash providedbỵoperatingactivities: Depreciation Amortization-prepaidmaintenance lntergovernmentalservicerevenue Miscelaneousincome (Increase)decreaseinasets: Acountsreceivable DuefromStateofLouisiana Inventories Prepaidexpenses Reimbursementduefrominsurancecompany Increase(decrease)inliabilities: Acountspayableandacruedexpenses Meterdeposits Totaladjustments Netcashprovidedbyoperatingactivities CASItFLOWSFROMCAPITALANDRELATED FINANCINGACTIVITIES Acquisitionandconstructionofcapitalasets Bondproceds Bondisuancecosts Principalpaidonoutstandingdebt lnterestpaidonoutstandingdebt Prepaidmaintenance Netcashprovidedbycapitalandrelatedfinancingactivities CASItFLOWSFROMINVESTINGACTIVITIES Purchasesofinvestments Maturitiesofinvestments Investmentincome Netcashusedforinvestingactivities Netincreaseincashandcashequivalents CASItANDCASHEQUIVALENTS Beginingofyear Endofyear ExhibitC $1,74,024 (28,13) 294,921 5,745) 12,263) 1,102 82, ,602 2,320,87 4,094,901 (3,03,781) 7,879,536 2,257,361 (4,537,075) 3,981,37 515,385 (40,353) 6,31,909 1,240,381 $17,52,290 NONCASItOPERATING,CAPITALANDRELATEDFINANCING ACTIVITIESANDINVESTING Revenuebondsof$8,0,0wereisuedatadiscountof$120,464, Amortizationofbondisuancecost,bondiscountandcostofconsolidationwas$59,312 Senotestofinancialstatements. 6

11 NOTESTOFINANCIALSTATEMENTS ExhibitD ConsolidatedWaterworksDistrictNo.1oftheParishofTercbonc, StateofLouisiana June30,198 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES Theacompanyingeneral-purposefinancialstatementsconformtogeneralyacepted acountingprinciplesforlocalgovernmentalunitsasprescribedbythegovernmental AcountingStandardsBoard.ThemoresignificantoftheDistrict'sacountingpoliciesare describedbelow: a)reportingentity BusinesinterestsandthepeopleofTereboneParishexpresedstrongsentimentfor theconsolidationofgovernmentalservices.legislationwasintroducedandpasedin the192sesionofthelouisianalegislaturethatalowedfortheconsolidationofthe CityofHoumawatersystem,withthatofWaterworksDistrictNos.1,2and3of TcreboneParish,intoaBoardofComisionersthatwouldvaryinsizefrom12to18 members.theactprovidedthatheparishwouldcreatetheconsolidateddistrictupon requestfromtheindividualwaterdistricts.waterworksdistrictno.1,byresolution datedfebruary7,194andwaterworksdistrictnos.2and3byresolutionsdatedjanuary19,194,requestedthetereboneparishconsolidatedgovernment(theparish) toformtheconsolidateddistrict.byanordinanceadoptedbytereboneparish ConsolidatedGovernmentonMarch23,194,thcConsolidatedWaterworksDistrictNo. 1oftheParishofTerebone,Louisiana(theDistrict)wascreatedonJuly1,194. inacordancewiththeimplementationofgasb14,"thefinancialreportingentity", ConsolidatedWaterworksDistrictNo.l'sfinancialstatementsincludetheacountsof althedistrict'sfunctionsandactivities.thecriteriausedtodeterminewhether componentunits(separategovernmentalunits,agencies,ornonprofitcorporations asociatedwiththedistrict)includeapointmentofavotingmajority,impositionofwil, impositionofinancialbenefitorburdenonthedistrict,andfiscaldependency.the Districthasdeterminedthatnotheroutsidentitymetstheabovecriteriandshould beincludedinitsfinancialstatements.ithasbendeterminedhowcverbaseduponthe abovecriteriathathedistrictisacomponentunitofthetereboneparishconsolidated Governmentandwilbeincludedinitscomprehensivefinancialreportfortheyear endingdecember31,198. 7

12 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) b)fundacounting Theacountingsystemisorganizedandoperatedonafundbasiswherebyaseparate self-balancingsetofacountsismaintainedforthepurposeofcaryingonspecificactivitiesoratainingcertainobjectivesinacordancewithspecialregulations,restrictionsor limitations.thefolowingisthedistrict'sfund: PROPRIETARYFUND EnterpriseFund-TheEnterpriseFundisusedtoacountforoperationsthatare financedandoperatedinamanersimilartoprivatebusinesenterpriseswherethe providingservicestothegeneralpubliconacontinuingbasisbefinancedorecorded primarilythroughusercharges.thedistrict'swaterworkssystemisanenterprise intentofthegoverningbodyisthathecosts(expenses,includingdepreciation)of Fund. e)basisofacounting Basisofacountingreferstowhenrevenuesandexpensesarerecognizedintheacounts andreportedinthefinancialstatements.basisofacountingrelatestothetimingofthe measurementsmade,regardlesofthemeasurementfocusaplied. TheEnterpriseFundisacountedforusingtheacrualbasisofacounting.Revenues arerecognizedwhentheyarearned,andexpensesarerecognizedwhentheyarc incured. d)useofestimates Thepreparationofinancialstatementsinconformitywithgeneralyaceptedacounling principlesrequiresmanagementomakestimatesandasumptionsthatafectcertain reportedamountsandisclosures.acordingly,actualresultscouldiferfromthose estimates. e)cashflows Cashandcashequivalentsincludeamountsinregularcheckingacountsandinvestments incertificatesofdepositswithmaturitiesofthremonthsorles. 8

13 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) f)acountsreceivables Thegeneral-purposefinancialstatementscontainoalowanceforuncolectibleacounts receivable.itistheopinionofmanagementhatreceivablesatjune30,198arc colectibleandposiblebadebtlosesareimatcrial. g)inventories Inventoriesconsistofsupliesandmaterialsandarevaluedataveragecosl h)restrictedasetsandreserves Specificasetsarerequiredtobesegregatedastouseandarethereforeidentifiedas restrictedasets.certainasetsarerestrictedpursuantorestrictionsarisingfromvarious bondindentureagrements.(senote5) i)fixedasets TheEnterpriseFundisacountedforonacostofservicesor"capitalmaintenance" measurementfocus.thismeansthatalasetsandaliabilities(whethercurentornoncmxent)asociatedwiththeactivityareincludedonthebalanceshet.reportedfund equity(netotalasets)isegregatedintocontributedcapitalandretainedearnings components.enterprisefundoperatingstatementspresentincreases(revenue)and decreases(expenses)inet"totalasets. Fixedasetsarevaluedathistoricalcosts.Donatedasetsarevaluedatheirestimaled fairvalueonthedatedonated.interestonbondprocedsusedforconslructionis capitalized. DepreciationofalexhaustiblefixedasetsoftheEnterpriseFundischargedagainstits operations.acumulatedepreciationisreportedolitsbalanceshet.depreciationhas benprovidedoverthestimatedusefulivesusingthestraight-linemethod. j)prepaidmaintenance Prepaidmaintenanceconsistsofthecostofpaintingwatertankswhichisamortizedover aperiodofiveyearsandfiltermediafortheplantwhichisamortizedoveraperiodof threyears. 9

14 No{eI

15 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) q)gasbpronouncements GovernmentAcountingStandardsBoard(GASB)StatementNo.20"Acountingand FinancialReportingforProprietaryFundsandOtherGovernmentalEntitiesthatuse ProprietaryFundAcounting,"providesthatproprietaryfundsmayaplyalGASB November30,1989,unlesthosepronouncementsconflictwithorcontradictGASB pronouncements,aswelasthefolowingpronouncementsisuedonorbefore pronouncements;statementsandinterpretationsofthefinancialacountingstandard Board,(FASB),AcountingPrinciplesBoard(APB)Opinions,andAcounting ResearchBuletins(ARB's)oftheComiteonAcountingProcedure.TheDistrict haselectedtoaplyonlyfasb,apbandarbmaterialsisuedonorbeforenovember 30,1989. Note2-DEPOSITS Louisianastatelawalowsalpoliticalsubdivisionstoinvestexcesfundsinobligationsof theunitedstates,certificatesofdepositofstateornationalbankshavingtheirprincipal oficeinlouisianaoranyotherfederalyinsuredinvestment. befulycolateralizedataltimes.aceptablecolateralizationincludesfdicinsuranceand StateLawrequiresdeposits(cashandcertificatesofdeposits)ofalpoliticalsubdivisions thcmarketvalueofsecuritiespurchasedandpledgedtothepoliticalsubdivision.obligationsoftheunitedstates,thestateoflouisianandcertainpoliticalsubdivisionsarealowedasecurityfordeposits.obligationsfurnishedasecuritymustbeheldbythepolitical politicalsubdivision.inacordancewithstatelawalcashandepositswerecolateralizcd. subdivisionorwithanunafiliatedbankorwithatrustcompanyfortheacountofthe Cashandepositsarecategorizedintothrecategoriesofcreditrisk Category1includesdepositscoveredbyfederaldepositoryinsuranceorbycolatera heldbythedistrictoritsagentinthedistrict'sname. Category2includesdepositscoveredbycolateralheldbythepledgingfinancial institution'strustdepartmentoritsagentinthedistrict'sname. Category3includesdepositscoveredbycolateralheldbythepledgingfinancial whichareuninsuredoruncolateralized. institution,oritstrustdepartmentoragentbutnotinthedistrict'snameandeposits

16 (Continued) ExhibitD Note2-DEPOSITS(Continued) Theyearendbankbalancesofdepositsandthecaryingamountsashownonthebalance shetareasfolows: BankBalances 2 Cash Certificatesofdeposit $269,212 Totals 50,0 $1,645,621 Balanc Bok 17,785,716 $1,534,962 18,285,716 AtJune30,198,cashandcertificatesofdepositinexcesoftheFD1Cinsurancewere colateralizedbysecuritiesheldbyunafiliatedbanksfortheacountofthedepositor.thc GovernmentalAcountingStandardsBoard(GASB),whichpromulgatesthestandardsfor acountingandfinancialreportingforstateandlocalgovernments,considersthesesecurities uncolateralized.eventhoughthepledgedsecuritiesareconsidereduncolateralizedunder theprovisionsofgasbstatement3,louisianarevisedstatute39:129imposesastatutory requirementonthecustodialbanktoadvertiseandselthepledgedsecuritieswithin10days ofbeingnotifiedbythedepositorthathefiscalagenthasfailedtopaydepositedfundsupon demand. AreconciliationofdepositsandinvestmentsashownonthcBalanceShetisasfolows Cashonhand Caryingamountofdeposits $ 19,820, Tolal Cashandcashequivalents-restricted $5,324,704 12,27,586 Totalcashandcashequivalents 17,52,290 Certificateofdeposit-restricted 2,268,538 Total

17 (Continued) ExhibitD Note3-BUDGET TheBoardisrequiredbyrevenuebondresolutionstoadoptalineitembudgetforthe Districtwithinthirtydaysofthendofitsfiscalyearforthefolowingyear.TheBoard adoptedalineitembudgetfortheyearendedjune30,198.alrevisionstothebudgetmust beaprovedbytheboard.thebudgetlapsesatyear-end. Note4-PROPERTY,PLANT,ANDEQUIPMENT AsumaryofpropertyplantandequipmentatJune30,198folows: Straight-Line Anual Depreciation Land Rate Amount Waterplant Distributionsystem Administrativebuilding 2%-20% $358,713 Plantequipment 5% 59,169,757 18,985,645 Furnitureandequipmenl Automobilesandtrucks 10%-20% 359,960 92,283 Constructioninprogres 20%-3% 50,705 62,035 91,957 Lesacumulatedepreciation Total (28,842,035) 82,021,05 Netproperty,plantandequipment Note5-LONG-TERMDEBT Aspartoftheconsolidation,(senotela),thethreformerlyseparatewaterdistricts refundedaltheirbondsoutstandingbytheisuanceofconsolidatedwaterworksdistrict No.1revenuebondsonJune30,194intheamountof$16,298,540andaditionalbonds forconstructionintheamountof$2,41,460foratotalof$18,710,0.thebondswere soldatadiscountof$391,384andisuancecostsof$234,612.thebondshavealintercst raterangingfrom3.4%to6.0%andarescheduledtomaturenovember1,

18 Note5-LONG-TERMDEBT(Continued) ExhibitD (Continued) InJune198,theDistrictsold$8,0,0ofrevenuebondsforconstruction.Thebonds weresoldatadiscountof$120,464andisuancecostsof$12,404.thebondshavean interestraterangingfrom3.75%to4.90%andarescheduledtomaturenovember1,2017. ThefolowingisasumaryofbondtransactionsoftheDistrictfortheyearendedJune30, 198: BondspayableatJuly1,197 Bondsisued Bondsretired BondspayableatJune30,198 Lesunamortizedbondiscount NetbondspayableatJune30,198 Longterm CmTcnl Total Water RevenueBonds $17,165,0 8,0,0 (750,0) 24,415,0 (379,893) $23,289,56 745,51 TheanualrequirementstoamortizealdebtoutstandingasofJune30,198,including interestpaymentsof$12,902,971areasfolows: YearEnding June30~_ Principal Interest Total $785,0 980,0 1,030,0 1,085,0 1,140,0 6,710,0 7,80,0 4,85,0 $1,24,718 1,213,798 1,16,218 1,15,029 1,060,052 4,321,341 2,256, ,195 $2,09,718 2,193,798 2,196,218 2,20,029 2,20,052 1,031,341 10,056,620 5,430,195

19 (Continued) ExhibitD Note5-LONG-TERMDEBT(Continued) WaterRevenueBonds: UnderthetermsofvariousbondindenturesforoutstandingWalcrRevenueBonds,the principalandinterestisecuredandpayablesolelyfromapledgeoftheincomeand revenuestobederivedfromtheoperationofthedistrict.alrevenuesmustbedeposited inthedistrictandrequiredtransfersmadetothefolowingfundsonamonthlybasisafter thepaymentofoperatingexpenses: a)revenuebondsinkingfund MonthlytransfersarerequiredtothisFundinanamountnecesarytomaketheprincipal andinterestpaymentsastheybecomedue.thefundisrestrictedforthispurpose. b)bondreservefund Moniesintheamountof$2,268,545havebendepositedintothisfund.Thisamountis equaltothehighestamountofprincipalandinterestdueinfutureyearsonthedistrict's outstandingwaterevenuebonds.thefundisrestrictedtothepaymentofprincipaland interestincaseofdefault. e)depreciationandcontingenciesfund Monthlytransfersof5%ofgrosrevenuesoftheDistrictfortheprecedingmonthis required.thefundisrestrictedtopaymentsforextensions,aditions,improvements, renewalsandreplacementsnecesarytoproperlyoperatethedistrict.itwilalsobeused topayprincipalandinterestiftherearcnotsuficientfundsintherevenuebond SinkingFundandBondReserveFund. d)bondrequirements TheacountingrequirementsofthebondresolutionforWaterRevenueBonds,astatcd ina)throughc)above,havebencompliedwithfortheyearendedjune30,198.

20 (Continued) ExhibitD Note6-DEFEASANCEOFDEBT CertainprocedsoftheConsolidatedWaterworksDistrictNo.1revenuebonds,werelransferedtoanescrowagentinanirevocabletrustoprovideforthefuturepaymentsonthe oldbondsofthethrefonerlyseparatewaterdistricts.acordingly,thetrustacountasets andliabilityforthedefeasedbondsarenotincludedinthedistrict'sgeneral-purpose financialstatements. AtJune30,198,thefolowingoutstandingbondsareconsideredefeased WaterworksDistrictNo.2GeneralObligationBonds,Series1989 Note7-CONTRIBUTEDCAPITAL Inconectionwiththeconsolidation,describedinNotela,theconsolidatingentilies transfered$9,798,282ofcashandinvestmentsand$34,267,340ofothernetasetstothe ConsolidatedWaterworksDistrictNo.1onJuly1,194.Thesetransfersarerecordedas contributedcapitalwhichiscomprisedofthefolowing: WaterworksDistrictNo.1 WaterworksDistrictNo.2 $26,639,274 WaterworksDistrictNo.3 3,803,90 CityofHoumaWaterSystem 7,416,617 6,205,831 Total Note8-DEFINEDBENEFITPENSIONPLAN PlanDescription-TheDistrictcontributestoPlanBoftheParochialEmployes'RetiremcntSystemofLouisiana(theSystem),acost-sharingmultiple-employerdefinedbenefit publicemployeretirementsystem(pers),whichiscontroledandadministeredbya separateboardoftrustes.thesystemprovidesretirement,deferedandisability benefits,survivor'sbenefitsandcostoflivingadjustmentstoplanmembersand beneficiaries.act205ofthe1952louisianalegislativesesionestablishedtheplan.the SystemisgovernedbyLouisianaRevisedStatutes1:1901through1:2015,specificaly, andothergeneralawsofthestateoflouisiana.thesystemisuedapubliclyavailable financialreporthatincludesfinancialstatementsandrequiredsuplementaryinformation forthesystem.thatreportmaybeobtainedbywritingtoparochialemployes'retirement SystemofLouisiana,P.O.Box14619,BatonRouge,Louisiana70898.

21 (Continued) ExhibitD Note8-DEFINEDBENEFITPENSIONPLAN(Continued) FundingPolicy-Planmembersarerequiredtocontribute2.0%&theiranualcovered salaryles$10permonthandthedistrictisrequiredtocontributeatanactuarialy deteninedrate.thedistrict'scontributionrateis2.50%.inadition,thesystemalso receivesapercentageoftaxrevenuesfromvarioustaxingbodieṣthecontribution requirementsofplanmembersandthedistrictarestablishedandmaybeamendedbystale statute.thedistrict'scontributionstothesystemfortheyearsendingjune30,198,197 mad196were$47,78,$30,590and$16,026,respectively,equaltolherequired contributionsforeachyear. Note9-RISKMANAGEMENT TheDistrictisexposedtoriskoflosrelatedtogrouphealthbenefits Liabilitiesarereportedwhenitisprobablethataloshasocuredandtheloscanbe reasonablyestimated.liabilitiesincludeanamountforclaimsthathavebenincuredbut notreported(inbrs).claimliabilitiesarethestimatedunpaidultimatecostsofseltling claims. FortheyearendingJune30,198,theDistrictwaself-insuredforthefirst$15,0ofeach claim.thedistrictiscoveredunderaninsurancecontractforthexcesliabilityupto $1,0,0.Anyclaiminexcesof$1,0,0istheresponsibilityofthemploye. AtJune30,198,theamountofliabilitywas$32,848.ThisliabilityistheDistrict'sbest estimatebasedonavailableinformation.changesinthereportedliabilitiesduringthepast twoyearsareasfolows: Beginingof CurentYear FiscalYear Claimsand 197 Liability_ Changesin Estimate N~Claim Payments Balanceal YearEnd Fiscal 198 $46,04 $34,926 $164,05 $146,067 $175,13 $148,145 $34,926 $32,848 TheDistrictalsoparticipatesintheParish'sriskmanagementinternalservicefundfor generaliability,workerscompensationandautoliabilitỵthedistrictpaysmonthly premiumstotheparishforworkers'compensationbasedonafixedpercentageofpayrol.

22 (Continued) ExhibitD Note9-RISKMANAGEMENT(Continued) TheDistrict'spremiumsforgeneraliabilityarebasedonvariousfactorsuchasoperations andmaintenancebudget,exposureandclaimsexperience.thepremiumsforautoliability arebasedonclaimsexperience,vehicletypeandmileage.theparishandlcsalclaims filedagainsthedistrict.thedistrictcouldhaveaditionalexposureforclaimsinexces oftheparish'sinsurancecontractsasdescribedbelow: GeneralLiability Policy Coverage Workers'Compensation $6,50,0 Limits AutoLiability Statutory $6,250,0 Coverageforclaimsinexcesoftheabovestatedlimitsaretobefundedfirstbyasetsof theparish'sriskmanagementinternalservicefund,$87,017atdecember31,197,thcn secondlybythedistrictandotherparticipatingfundsandagencies.atjune30,198,thc Districthadnoclaimsinexcesoftheabovecoveragelimits. Note10-CONTRACTCOMITMENTS OnJune30,198,theDistricthad$783,907inpublicworkscontractsofwhich$150,830 wasuncompleted. Note1 -BOARDMEMBERSH1PANDCOMPENSATIONOFBOARDOFCOMISIONERS Numberof BoardMembers Metings Atended Metings Atended Mileage Amount Total ChesterP.Voisin RuselRedmond 23 $983 ArlenJ.Guidry WilieBonvilain,Jr $ JulesLeBoeuf 60 $ AmosUsie,Jr BobJ.Boudreaux

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24 SUPLEMENTARYINFORMATIONSECTION

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26 ConsolidatedWaterworksDistrictNo.1oftheParish SCHEDULEOFDEPARTMENTALEXPE FortheyearendedJune30,198 StateofLouisiana Budget ADMINISTRATIVE Personalservices: Salaries Employegroupinsurance Payroltaxes 147,0$ Retirementfund 21,50 15,50 Totalpersonalservices 18,0 4,0 Supliesandmaterials: Gasolineandoil Oficesupliesandexpense 25,0 1,50 Otherservicesandcharges: Totalsupliesandmaterials 26,50 Acounting Atorney 38 Boardmetings 130,0 12,50, 0 Bondagentfes Consultingenginer Insuranceandbonds 17,60 15,0 2,0 Janitorialservices Publishprocedings Radiocomunications 18,50 Repairsandmaintenance: 10,50 6,0 SeminarsandschoJs Equipmentandbuildingrepairs Truckandautorepairs 20,0 10,0 1,0 Telephone Utilities-ofice Totalotherservicesandcharges _289,10 8,0 Totaladministrative 503,60 BILINGANDCOLECTIONS Personalservices: Salaries Employegroupinsurance Payroltaxes 15,0 Retirementfund 16,50 Totalpersonalservices 219,50 4,0 21

27 BILINGANDCOLECTIONS(Continued) Supliesandmaterials: Gasolineandoil Oficesupliesandexpense Totalsupliesandmaterials Otherservicesandcharges Dataprocesing Insuranceandbonds Postage Repairsandmaintenance Truckandautorepairs Telephone Totalotherservicesandcharges Totalbilingandcolections METEREADING Personalservices: Salaries Employegroupinsurance Payroltaxes Retirementfm~d Totalpersonalservices Supliesandmaterials: Gasolineandoil Oficesupliesandexpense Smaltols Totalsupliesandmaterials Otherservicesandcharges: Insuranceandbonds Metereadingcontractservices Radiocomumcatlons Repairsandmaintenance: Equipmentandbuildingrepairs Meterpartsandrepair Truckandautorepairs Totalotherservicesandcharges Totalmetereading 1, ,50 40,0 15,0 92,0 1,0 8,0 156,0 390,0 285,0 62,0 29,50 7,0 383,50 14,0 3,0 3, ,0 12,0 1, ,0 462,0 Actual 1,125 12,267 13,392 37,424 17,252 89, , , , ,105 54,31 28,909 6, ,215 12, ,197 15,796 34,32 1, ,34 2,067 15,

28 WAREltOUSEANDMETERSHOP Personalservices: Salaries Employegroupinsurance Payrol[taxes Retirementfund Supliesandmaterials: Totalpersonalservices Gasolineandoil Meterepairparts Oficesupliesandexpenses Smaltols Warehousesuplies Otherservicesandoh,urges: Totalsupliesandmaterials Freight Insuranceandbonds Repairsandmaintenance: Equipmentandbuildingrepairs Totalotherservicesandcharges ENGINERING Totalwarehouseandmetershop Personalservices: Salaries Employegroupinsurance Payrol/taxes Retirementfund Su[~pliesandmaterials: Totalpersonalservices Computersuplies Gasolineandoil Oficesupliesandexpenses Otherservicesandcharges Totalsupliesandmaterials Insuranceandbonds Mobilephones Radiocomunications (Continued) Se]Jednle2 Aet~al (Unfavorable) Favorable Variance 69,0 15,0 7,50 68,767 93, ,59 7, ,190 1,731 2, ,0 50 2,050O 8 28, , , , ,865 2,683 1,0 6, ,084 6,465 (465) , , ,0 27,0 25,0 235, ,281 24,359 6,701 5,747 (281) 30,0 292,686 7,314 64I253 5,0 7, ,8 6,78 12,898 2,232 1, ,102 19,0 2,40 18,35 2, (2,065) 2,181

29 ENGINERING(Continued) Otherservicesandcharges:(Continued) Repairsandmaintenance: Equipmentandbuildingrepairs Truckandautorepairs Seminarsandschom Totalotherservicesandcharges Totalenginering OPERATIONS Otherservicesandcharges Utilities MAINTENANCEANDFIELDCREWS Personalservices: Salaries Employegroupinsurance Payroltaxes Retirementfund Totalpersonalservices Supliesandmaterials: Chetnicals Gasolineandoil Oficesupliesandexpenses Smaltols Totalsupliesandmaterials Otherservicesandcharges: Freight Insuranceandbonds Mobilephoneṣ Radioeomumeations Repairsandmaintenance: Equipmentrepairs-field Truckandautorepairs Waterlinemaintenance Seminarsandschols Totalo'd~erservicesandcharges 1,0 6,0 9,0 37,40 352, ,0 94,0 49, ,20 2,0 13, ,0 34,0 13,0 430,0 2,0 3,0 54,50 Totalmaintenanceandfieldcrews 1,208,70 Actual 52 6, ,089 92,730 51,291 12, ,474 1,85 2, , , ,179 14, , _94 549,

30 WATERPLANT Personalservices: Salaries Employegroupinsurance Payrol/taxes Retirementfund Totalpersonalservices Supliesandmaterials: Chemicals Computersuplies Fuelforgenerator Gasolineandoil Oficesupliesandexpense Rawater Smaltols Warehousesuplies Totalsupliesandmaterials Otherservicesandcharges: Freight Insuranceandbonds Radiocomunications Repairsandmaintenance Plantmaintenance Tractorepairs Truckandautorepairs Seminarsandschoms Telephone Unitbrms Utilities Totalotherservicesandcharges Totalwaterplant BAC-T-LAB Personalservices: Salaries Employegroupinsurance Payroltaxes Retirementfund Totalpersonalservices 495,0 87,0 50,50 12, ,0 2,0 1,0 7,0 5,0 16,0 2,0 6_0 812,0 2,0 15,02O0 150, ,0 7,0 1,0 450, ,0 6,10 5,50 1, Actual 489,569 97,423 50, Schedule2 (Continued) Favorable (Unfavorable) Variance 5,43] (lo,4~/ ,783 (4,983) 63,28 1,57 6,619 5,516 16,54 1, ,61 108, ,506 2,753 3,5 2,214 5,935 1, ,194,640 51fl39 4,603 5,06 1,212,7243, ) 54) , ,26137.(8,205) (1,640) 3,56l 1, ,320 5,680

31 Budget Actual 1,0 1,20 8,0 80 1,0 10, O 5,50 4, ,0 5,139 3, ,0 5,27 3,0 1, ,10 30,147 $5,514,30 $5,475, ,090 $2,537,50 2,024,30 952,50 $2,528, ,857 $5,514,30 $5,475,308 2,016,698

32 ConsolidatedWaterworksDistrictNo.1oftheParishofTereb SCIEDULEOFNON-OPERATINGREVENUES(EXPENS FortheyearendedJune30,198 StateofLouisiana Actual hwestmentincome Serviceagrements: SewerageDistricts $40,0 Othernon-operatingrevenues: GarbageColections 70,0 $53,82 Bondinterest Miscelaneous 28,0 75,78 Amolizationofbondiscountand Unclaimedmeterdepositrefunds 13,0 30,635 2,0 21,956 Amortizationofcostofconsolidation isuancecost (965,786) (50,795) (965,786) 4,617 (8,518) (50,795) Totalnon-operating (8,518) revenues(expenses) $(512,09)$(38,21) 27

33 ~o~o~ o~

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36 Schedule7 WATERCUSTOMERS ConsolidaledWaterworksDislrictNo.1 oftheparishofterebone, StateofLouisiana June30,198 (Unaudited) RecordsmaintainedbytheDistrictindicated36,514watercustomersatJune30,198 ]'herewerenounmetercdcustomers

37 SPECIALREPORTOFCERTIFIEDPUBLICACOUNTANTS

38 BourgeoisBenet FINANCIALREPORTINGBASEDONANAUDITOFTHEGENERAL- REPORTONCOMPLIANCEANDONINTERNALCONTROLOVER PURPOSEFINANCIALSTATEMENTSPERFORMEDINACORDANCE WITHGOVERNMENTAUDITINGSTANDARDS TotheBoardofComisioners, ConsolidatedWaterworksDistrictNo.1ofthe ParishofTerebone,StateofLouisiana, Houma,Louisiana. DistrictNo.1oftheParishofTerebone,StateofLouisiana,(theDistrict),acomponentunitofthe Wehaveauditedthegeneral-purposefinancialstatementsoftheConsolidatedWaterworks TercboneParishConsolidatedGovernment,asofandfortheyearendedJune30,198,andhave isuedoureporthereondatedaugust14,198.weconductedourauditinacordancewith generalyaceptedauditingstandardsandthestandardsaplicabletofinancialauditscontainedin GovernmentAuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates Compliance financialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewith AspartofobtainingreasonableasuranceaboutwhethertheDistrict'sgeneral-purpose certainprovisionsoflaws,regulations,contractsandgrants,noncompliancwithwhichcouldhave adirectandmaterialefectonthedeterminationofinancialstatementamounts.however,providing anopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,acordingly, wedonotexpresuchanopinion.theresultsofourtestsdisclosednoinstancesofnoncompliance thatarerequiredtobereportedundergovernmentauditingstandards InternalConlrolOverFinancialReporting financialreportinginordertodetermineourauditingproceduresforthepurposeofexpresingour Inplaningandperformingouraudit,weconsideredtheDistrict'sinternalcontrolover opiniononthegeneral-purposefinancialstatementsandnotoprovideasuranceontheinternal controloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancialreporting wouldnotnecesarydisclosealmatersintheinternalcontroloverfinancialreportingthatmightbe materialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperationofoneor 1340WestqunelBIvd,Suite430 ~O.Box2168 Houma,LA Pitone(504) Fax(504)87%1949 AcountantsIConsultants ALimitedLiabilityCompany CertifiedPublic 504WestSecondSt,el RO.Box1205 Thibodaux,[A Phone(504)

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41 REPORTSBYMANAGEMENT

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43 MANAGEMENT'SCORECTIVEACTIONPLAN ConsolidatedWaterworksDistrictNo.1oftheParishofTerebone, StateofLouisiana FortheyearendedJune30,198 SectionInternalControlandComplianceMaterialtotheGeneral-PurposeFinancial Statements InternalControl NomaterialweakneseswerenotedfortheyearendedJune30,198. NoreportableconditionswerenotedfortheyearendedJune30,198. Compliance Nocompliancefindingsmaterialtothegeneral-purposefinancialstatementswerenoteduring theauditfortheyearendedjune30,198. SectionIlnternalControlandComplianceMaterialtoFederalAwards ConsolidatedWaterworksDistrictNo.1oftheParishofTerebonedidnotreceivefederalawards duringtheyearendedjune30,198. SectionIlManagementLeter AmanagementletlerwasnotisuedinconectionwiththeauditfortheyearendedJune30,