and C hanges in Fund Balance -Budget SUPPLFM ENTAL INFO RM ATIO N SC HEr)ULES Schedule ofexpenditures by Station -June 30,1998

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2 PA RISHW ld E FIRE PRO TEC TIO N DISTRIC T O F EA ST FELIC IA NA PA RISH,LO U ISIA NA G EN ERA L PUR PO SE FINA NC IA L STA TEM ENTS A S O F A N D FO R TH E TW O Y EA RS EN D ED JU N E 30,1999 W ITH S U PPLEM ENTA L INFO RM A TIO N SC H ED U LES G EN ERA L PU R PO SE FINA NC IA L STATFM ENTS ndependenta uditor's R eport C om bined Balance Sheet-A llfund "Types and AccountG roups Com bined Statem entofrevenues,expenditures and C hanges in Fund Balance -A ll G overnm entalfund Types C om bined Statem entofrevenues,expenditures and C hanges in Fund Balance -Budget and Actual(Non-GAAP Budgetary Basis) - G eneralfund Notes to FinancialStatem ents SUPPLFM ENTAL INFO RM ATIO N SC HEr)ULES Schedule ofdebtservice Requirem ents to M aturity Schedule ofexpenditures by Station -June 30,1998 Schedule ofexpenditures by Station -June 30,1999 ndependentauditor's Report on InternalControl Structure Based on an AuditofG eneral Purpose FinancialStatem ents Perform ed in Accordance w ith G overnm entauditing Standards ndependenta uditor's Report on Com pliance Based on an A uditofg eneralpurpose or Basic FinancialStatem ents Perform ed in A ccordance w ith G overnm enta uditing Standards

3 PA R ISHW ID E FIR E PRO TECTIO N DISTRIC T O F EA ST FELIC IA NA PA R ISH,LO UISIA NA G EN EN ERA L PU R PO SE FINA NC IA L STA TEM ENTS A S O F A N D FO R TH E TW O Y EA RS EN DED JU NE 30,1999 W ITH S U PPLEM ENTA L INFO R M A TIO N SC H ED U LES TA BLE O F CO NTENTS Schedule offindings and Questioned Costs M anagem entletter Sum m ary Schedule ofprioryearfindings M anagem ent's C orrective Action Plan l l

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5 JO ltn D.BUTLER & CO M PAN Y A PRO FESSIO NA l ACCO UN IlNG CO RPO RAIlO N I~ O.BO X 30 BAKER.I~)UISIANA INDEPEN DENT A UDITO R'S REPO RT Decem ber M em bers ofthe Board ofcom m issioners Parishw ide Fire Protection D istrictof EastFeliciana Parish,Louisiana P.O.Box 427 C linton.louisiana W e have audited the accom panying generalpurpose financialstatem ents ofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana,as ofjune 30,1999,and forthe tw o years then ended,as listed in the table ofcontents. These general purpose financial statem ents are the responsibility of the Parishw ide Fire Protection D istrict of East Feliciana Parish, Louisiana's m anagem ent. O ur responsibility is to express an opinion on these general purpose financialstatem ents based on ouraudit. W e conducted ourauditin accordance w ith generally accepted auditing standards and G overnm entauditinq Standards issued by the Com ptro lerg eneralofthe U nited States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance about w hether the general purpose financial statem ents are free ofm aterialm isstatem ent. A n auditincludes exam ining,on a test basis, evidence supporting the am ounts and disclosures in the general purpose financialstatem ents. A n auditalso includes assessing the accounting principles used and significant estim ates m ade by m anagem ent, as w ell as evaluating the overallgeneralpurpose financialstatem ent presentation. W e believe thatourauditprovides a reasonable basis forouropinion. In ouropinion,the generalpurpose financialstatem ents referred to above present fairly, in all m aterial respects, the financial position of the Parishw ide Fire

6 Parishw ide Fire Protection D istrictof EastFeliciana Parish,Louisiana D ecem ber13,1999 page 2 Protection D istrictofeastfeliciana Parish,Louisiana,as ofjune 30,1999 and the results ofits operations forthe tw o years then ended in conform ity w ith generally accepted accounting principles. O urauditw as m ade forthe purpose ofform ing an opinion on the generalpurpose financialstatem ents taken as a w hole. The schedules listed in the table of contents are presented forpurposes ofadditionalanalysis and are nota required partofthe generalpurpose financialstatem ents ofthe Parishw ide Fire Protection DistrictofEastFeliciana Parish,Louisiana.Such information hasbeen subjected to the auditing procedures applied in the auditofthe generalpurpose financial statem ents and, in our opinion, is fairly presented in allm aterialrespects in relation to the generalpurpose financialstatem ents taken as a w hole. In accordance w ith G overnm entauditinl Standards,w e have also issued a report dated Decem ber13,1999,on ourconsideration ofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana's internalcontrolstructure as itrelates to the generalfund and a report dated Decem ber13,1999,on its com pliance w ith law s and regulations. John D.Butler& Com pany, A ProfessionalAccounting Corporation

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9 PA RISHW IDE FIRE PRO TE:CTIO N DISTRICT O F EAST FELICIA NA PA RISH,LO UISIA NA C O M B IN ED STA TEM ENT O F R EV ENU ES,EXPEN DITU R ES A N D C HANG ES IN FUND BALANC E A LL G O V ERN M ENTA L FU N D TY PES Y EA R EN D ED JU N E 30,1999 G eneral D ebt _Service Capital Projects Totals (Memorandum Only) R EV EN U ES Taxes Donations Investm entincom e M iscellaneous $ 234, $ 471, , O0.00 O0 O0 O0 O0 $ 705, $ 679, , O0 1, TotalRevenues 245, , , , EX PEN D ITU R ES G eneralgovernm ent Debtservice Principal interest C apitaloutlay , , , , , , , , , , TotalExpenditures Excess (Deficiency)of R evenues over Expenditures 52, , (144,528.21) (1,259.72) (995,238.57) OTHER FINANCING SOURCES (USES) O perating transfers in O perating transfers out O0 O , ) (25, TotalO therfinancing Sources (Uses) (949.16).00 O0 Excess (Deficiency)of Revenues and O therfinancing Sources O verexpenditures and OtherFinancing Uses 53, , (144,528.21) (1,259.72) (995,238.57) FU N D BA LANC E,beginning FU N D BA LA N C E,ending The accom panying notes are an integralpartofthese statem ents

10 PA RISHW ID E FIRE PRO TEC TIO N DISTR IC T O F EAST FELIC IA NA PA RISH,LO UISIA NA C O M BIN ED STA TEM ENT O F R EVEN UES,EXPEN DITU R ES A N D C HA NG ES IN FU ND BA LA NC E BUDG ET AND ACTUAL.(NO N-GAAP BUDGETARY BASIS) G E'NERA L FU N D Y EA R EN DED JUN E 30,1999 Bud ggt G ENERA L FU N D A ctual Variance Favorable (Unfavorable) R EVEN UES Taxes Investm entincom e O0 O0 $ 234, $ (234,136.00) (11,834.52) TotalRevenues , (245,970.52) EX PEN D ITU R ES G eneralgovernm ent Debtservice Capitaloutlay O0 O0 O0 91, , (91,112.52) (4,000.00) (98,096.91) TotalExpenditures Excess ofrevenues over Expenditures OTHER FINANCING SOURCES (USES) O perating transfers in , (193,209.43) 00 52, (52,761.09) O ( Excess ofrevenues and O ther Financing Sources over Expenditures and O therfinancing Uses FU N D BA LAN C E,beginning FUN D BALANCE,ending The accom panying notes are an integralpad ofthese statem ents

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12 PA RISHW ID E FIRE PRO TEC TIO N DISTRIC T O F EAST FELIC IA NA PA RISH,LO U ISIA NA NO TES TO FINA NC IA L STA TEM ENTS JU N E 30,1999 NO TE 1 -SUM M ARY O F SIG N IFICANT ACCO UNTING PO LIC IES Introduction: The Parishw ide Fire Protection D istrictofeastfeliciana Parish, Louisiana (District),was established on November7,1994,by the Parish Policy Jury forthe purpose of acquiring,constructing and im proving buildings,m achinery and equipm entto be used in giving fire protection to the citizens ofeastfeliciana Parish, Louisiana. Its boundaries w ere extended throughoutthe parish by resolutions adopted by the governing authorities ofthe Tow ns ofc linton,jackson and Slaughterand the V illages ofnorw ood and W ilson. Itis governed by a Board ofcom m issioners m ade up ofthirteen (13)individuals.The District('overs an area ofapproximately square m iles and a population ofapproxim ately 20,315 people. Financial Reporting Entity: The financialreporting entity consists of the prim ary governm ent,organizations forw hich the prim ary governm ent is financially accountable and other organizations forw hich the nature and significance of their relationship w ith the prim ary governm ent is such that exclusion w ould cause the reporting entity's financialstatem ents to be m isleading orincom plete. G overnm ental Accounting Standards Board (GASB)StatementNo.14,The FinancialReporting Entity, established criteria fordeterm ining w hich organizations orcom ponentunits should be included in the D istrictforreporting purposes. This criteria focuses on the conceptof financialaccountability and includes the follow ing: (a) (b) (c) (d) (e) W hetherthe potentialcom ponentunitis a legally separate organization w ith the capacity to have its ow n nam e,the rightto sue and be sued and the rightto buy, sell,lease and m ortgage property in its ow n nam e; W hetherthe Districtappoints a voting majority ofthe potentialcomponentunit's governing body; W hetherthe potentialcom ponentunitis fiscally interdependentofthe D istrict; W hetherthe D istrictpossesses the ability to significantly influence the program s, projects,activities orlevelofservicesperformed orprovided by the potential com ponentunit; W hetherthe relationship between the D istrictand the potentialcom ponentunit creates the possibility ofa financialbenefit/burden. Based on the definition ofa reporting entity and the criteria above,the accom panying financialstatem ents include the volunteerfire departm ents of Bluf C reek,c linton, Ethel,Jackson,Jackson A irport,m agnolia,m cm anus,norw ood,o live Branch,Pecan G rove,slaughter,w ilson and W oodland as blended com ponentunits. The activities, included in the financial reporting entity as part of the General Fund,of these departm ents are those related to the fire protection tax received by the D istrictand disbursed to the departm ents. Each m onth,the individualdepartm ents attend the D istrict's Board m eetings to report on the status ofthese funds and gain approvalfor any expenditures of these funds. The books are m aintained by each individual volunteerfire departm ent.

13 PAR ISHW ID E FIR E PRO TECTIO N DISTR ICT O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NCIA L STA TEM ENTS JU NE 30,1999 B asis of Presentation: The D istrictuses funds and accountgroups to report on its financialposition and the results ofits operations. Fund accounting is designed to dem onstrate legalcom pliance and to aid financialm anagem ent by segregating transactions relating to certain governm entfunctions oractivities. A fund is a separate accounting entity w ith a self-balancing setofaccounts. O n the otherhand,an accountgroup is a financialreporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do notdirectly afectnetexpendable available financialresources.the majorfund categories and account groups used in the accompanying financial statem ents are: G overnm entalfund Types G overnm entalfunds are used to accountfora lor m ostofthe District's generalactivities,including the collection and disbursem entof specific or legally restricted m onies,the acquisition orconstruction ofgeneralfixed assets and the servicing ofgenerallong-term debt. G overnm entalfund types include: (1) Generalfund This is the generaloperating fund of the District and accounts for all financial resources except those required to be accounted for in other funds. (2) DebtService Fund This fund accounts fortransactions relating to resources retained and used forthe paym entofprincipaland intereston those long-term obligations recorded in the G enerallong-term DebtAccountG roup. (3) CapitalProjects Fund A lmajorcapitalexpenditures,generaly those thatextend beyond one year and are financed by specifica ly designated resources,are accounted for in this fund. AccountGroups Accountgroups are used to accountforfixed assets and term liabilities w hich are notreported in the respective governm entalfunds include: long- They (1) GeneralFixed Assets C apitalassets ofgovernm entalfund types are recorded in this account group. ]0

14 PA RISHW ID E FIR E PRO TECTIO N DISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NC IA L STA TEM ENTS JU N E!30,1999 (2) GeneralLong-Term Debt The non-currentportion ofdebtthatis notspecifica ly the obligation of proprietary funds and certain trustfunds is reported as generallong-term debtin this accountgroup. B asis of A ccounting:the accounting and financialreporting treatm entapplied to a fund is determ ined by its m easurem entfocus. A lgovernm entalfund types are accounted for using a current financialresources m easurem ent focus. W ith this m easurem entfocus,only currentassets and currentliabilities are generally included on the balance sheet. O perating statem ents ofthese funds presentincreases and decreases in netcurrentassets. The m odified accrualbasis ofaccounting is used by a l governm ental fund types in the accom panying financial statem ents. Such accounting and reporting procedures conform to the requirem ents oflouisiana Revised Statute 24:517 and to the quidelines setforth in the Louisiana M unicipala uditand Accounting G uide and to the industry audit guide, A udits of State and Local G overnm entalunits.the District's books are m aintained on the cash basis during the year. The follow ing revenue sources have been treated as susceptible to accrua underthe m odified accrualbasis: Taxes -includes property and fire protection Budgets and Budgetary A ccounting: An annualbudgetis presented to the Board ofc om m issioners by the independentc PA as required priorto the end ofthe fiscalyear. In June,the Board adopts the annualfiscalyearappropriated budgetfor the D istrict's generalfund on a cash basis. A balanced budgetis required. Ifan appropriations ordinance is notpassed consistentw ith the budget,50% of the prioryearappropriation is deem ed reappropriated. Appropriations lapse atyear end. A m endm ents are passed by the Board on an as-needed basis. The levelof control is at the departm ental level,w here expenditures m ay not legally exceed appropriations.there w ere no am endm ents during the years ended June 30,1998 and W hile a budgetw as prepared forthe yearended June 30,1998,there w as not one forthe yearended June 30,

15 PA R ISHW IDE FIR E PRO TEC TIO N DISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NC IA L STATEM ENTS JU N E 30,1999 C ash,c ash Equivalents and Investm ents:cash includes am ounts in dem and deposits and interest-bearing dem and deposits. Cash equivalents include am ounts in time depositsand those investments with originalmaturities ofninety (90)days orless. U nderstate law,the D istrictm ay depositfunds in dem and deposits,interest-bearing dem and deposits,m oney m arketaccounts ortim e deposits w ith State banks organized under Louisiana law and nationalbanks having theirprincipalofices in Louisiana. Investm ents are stated atcostplus interestifthatinterestis reinvested. Investm ents are lim ited by Louisiana Revised Statute 33:2955. In accordance w ith GASB Statem ent No. 31, investm ents are recorded at fair value w ith the corresponding increase ordecrease reported in investm entearnings.a linvestm ents ofthe D istrictare funds held in the Louisiana A ssetm anagem entpool. Fixed A ssets: Fixed assets of governm ental funds are recorded as expenditures at the tim e purchased or constructed, and the related assets are capitalized in the G eneral Fixed Assets A ccount G roup. Public dom ain or infrastructures are notcapitalized. Interestcosts incurred during construction are not capitalized. No depreciation has been provided on generalfixed assets. A llfixed assets are valued athistoricalcostorestim ated costifhistoricalcostis notavailable. D onated assets are valued attheirestim ated fairvalue on the date ofdonation. Long-Term O bligations: Long-term obligations expected to be financed from governm entalfunds are reported in the G enerallong-term DebtA ccount G roup. Expenditures forinterestand principalpaym ents are recognized in the governm ental funds w hen due and paid. Fund Equity: Equity includes the follow ing R eserves This represents those portions offund equity notappropriable for expenditure and are legally segregated fora specific future use. Unreserv ed,undesignated This is the portion ofequity thatis notdesignated for a specific future intent. Interfund Transactions: All interfund transactions, except quasi-externa transactions,are reported as operating transfers. Com parative Data: Com parative totaldata for the prior year have been presented in the accom panying financial statem ents in order to provide an understanding ofchanges in the D istrict's financialposition and operations. How ever, comparative (i.e.,presentation ofprioryeartotals by fund type)data have notbeen presented in each ofthe statem ents since theirinclusion would m ake the statem ents unduly com plex and dificultto read.

16 PA RISHW IDE FIR E PRO TEC TIO N D ISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NCIA L STA TEM ENTS JUN E 30,1999 TotalColum ns on Com bined Statem ents: Totalcolum ns on the com bined statem ents are captioned "M em orandum O nly"to indicate thatthey are presented only to facilitate financialanalysis. Data in these colum ns do notpresentfinancialposition, results of operations or changes in financialposition in conform ity w ith generally accepted accounting principles. Neitheris such data com parable to a consolidation. Interfund elim inations have notbeen m ade in the aggregation ofthis data. A ccounting Estim ates: The preparation offinancialstatem ents in conform ity w ith generally accepted accounting principles requires the use ofcertain estim ates and assum ptions. Those estim ates affectthe reported am ounts ofassets and liabilities at the date ofthe financialstatem ents. They m ay also affectthe reported am ounts of revenues and expenditures during the reporting period. NO TE 2 -CASH CASH EQ UIVALENTS AND INVESTM ENTS The cash,cash equivalents and investm ents ofthe DistrictatJune 30,1998 and 1999,w ere as follow s: Prim ary governm ent C ash and cash equivalents Investm ents atlam P,Inc. Blended com ponentunits C ash and cash equivalents Investm ents atlam P,Inc. $ 480, , $ 311, , Tota U nder State law,they m ust be secured by federaldeposit insurance or the pledge ofsecurities ow ned by the fiscalagentbank. These securities are held in the nam e ofthe pledging fiscalagentbank in a holding orcustodialbank thatis m utually acceptable to both parties.atjune 30,1998 and 1999,the Districthad $ 591, and $ 528,058.09, respectively, in dem and deposits at area banks which was co lateralized by approximately $1,600,000 in federaldepositinsurance and pledged securities. Even though the pledged securities are considered uncollateralized under the provisions ofg ASB Statem entno.3,louisiana Revised Statute 30:1229 im poses a statutory requirem ent on the custodial bank to advertise and sellthe pledged securities within ten (10)days ofbeing notified thatthe fiscalagenthas failed to pay deposited funds upon demand. The remaining deposits of$21, in 1998 and $ 64, in 1999,w ere held in the Louisiana AssetM anagem entpool. This local governm ent investm ent pool is adm inistered by a non-profit corporation, LAM P, Inc.,organized under the law s of the State of Louisiana. Its purpose is to provide a safe environm entforthe placem entofpublic funds in short-term, 13

17 PA R ISHW ID E FIR E PRO TECTIO N DISTRIC T O F EA ST FEL C IA NA PA R ISH,LO UISIA NA NO TES TO FINA NCIA L STATEM ENTS JU NE 30,1999 high-quality investm ents. Investm ents included in its portfolio,w hich is restricted to those issued,guaranteed or backed by the U.S.Treasury,the U.S.G overnm ent or one of its assigns,include only those with maturities ofninety (90)days orless. This design a lows participants im m ediate access to theirfunds.forthis reason,the accountbalance atyearend is recorded in the accom panying financialstatem ents as cash and cash equivalents. NOTE 3 -REC EIVABLES Receivables,a resultoftaxes assessed butnotyetreceived,w ere as follow s atjune 30,1998 and 1999: G eneral DebtService G eneral DebtService Taxes,net $ 45, $ 78, $ $ 71, NO TE 4 -FIX ED ASSETS A sum m ary ofchanges in generalfixed assets is as follow s Balance 7/01/97 Additions Deletions Balance 6/30/98 Land $ Buildings Vehicles Equipm ent O ther 00 $ 8, , ,238, , Total Land $ Buildings Vehicles Equipm ent O ther Tota 14

18 PA RISHW ID E FIRE PRO TEC TIO N DISTR IC T O F EAST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NC IA L STA TEM ENTS JU NE 30,1999 NO TE 5 -G EN ERA L LO NG -TERM DEBT The follow ing is a sum m ary ofchanges governm entalfunds forthe yearended June 30 n long-term debt incurred by the D istrict's 1998 and 1999: G eneral O bligation Bonds Notes Balance at7/1/97 Note assum ed/bluffc reek Station Principalpaym ents $ 3,360, ( $.00 33, (7,605.81) Balance at6/30/98 Principalpaym ents Balance at6/ ,000.00) (1,742.94) O n April20,1996,the issuance ofgeneralobligation bonds,series 1996,in the am ount of$3,500,000 was approved.they were ofered forsale in June of1996 "...forthe purpose of acquiring,constructing and im proving buildings,m achinery and equipm ent,both realand personalproperty,to be used in giving fire protection to the property ow ners...". The bonds sold with accrued interestof$8, Interestis payable sem i-annua ly in M arch and Septemberat9% forthe firstsix (6)years,8.4% forthe seventh yearand 5% forthe remaining life offifteen (15)years. Principalpayments are made annualy in March asfo lows: Rem aining years 180, , ,00[) 215,00[) 225,00[) O n M arch 10,1995,the Bluf Creek VolunteerFire Departm entborrowed $33,000 from Feliciana Bank & TrustCo.to build theirstation. There w as no note norany am ortization schedule forrepaym entprepared,buta gentlem an's agreem entthatthe loan w ould be paid 15

19 PA RISHW ID E FIR E PRO TEC TIO IN DISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NC IA L STA TEM ENTS JU N E 30,1999 back as funds w ere available atan interestrate of8%. Interestpaym ents w ere m ade during construction. Repaymentofapproximately $4,000 peryearwas agreed upon ata laterdate, and these paym ents are being m ade through the D istrict's funds rem itted to Bluf C reek V olunteerfire Departm ent. The liability and corresponding assethave been recorded on the accom panying financialstatem ents. NO TE 6 -INTERFUND TRA NSACTIO NS Transfers to and from funds are as follow s Transfers n O ut G eneral DebtService Total G eneral DebtService Total $ 25, $.00 $ N O TE 7 -TAX ES A specialad valorem tax often and twenty-five hundredths (10.25)mils was levied, assessed and im posed on alltaxable property w ithin the Parish ofeastfeliciana. Approval w as granted w ith a specialelection held on A pril20,1996,forthe purpose ofpaying principal and intereston generalobligation bonds,series 1996,in the am ountof$3,500,000.the tax is collected by the Parish Policy Jury and rem itted to the D istrict. Taxes are due on January 1stand becom e delinquenton Decem ber31st. The 1974 Louisiana Constitution (Article 7 Section 18)provides forthe fo lowing assessm ents based on fairm arketvalues: Land and im provem ents forresidentialpurposes O therproperty and electric cooperative properties,excluding land Public service properties,excluding land 10% 15% 25% 16

20 PA R SHW ID E FIR E PRO TEC TIO N DISTR IC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINANCIAL STATEM ENTS JU N E 30,1999 Fairm arketvalue is determ ined by the elected assessorofthe Parish exceptpublic service properties w hich are valued by the Louisiana Tax Com m ission according to Louisiana Revised Statute 47:1957.These assessments are subjectto review and certification by the Louisiana Tax Commission. Property subjectto taxation is required to be reassessed at intervals ofnotmore than four(4)years. Property taxes are recognized in the accounting period in w hich they becom e available and m easurable w hich is the calendaryearofthe tax levy.accordingly,the tax ro lis recorded as revenue in the currentyear,and an estim ated unco lectible am ountis recorded. The property tax calendaris as follow s Levy date Tax bills m ailed Due date Lien date Septem ber25 Decem ber2 Decem ber31 January 1 In accordance w ith the provisions of Louisiana Revised Statute 40: , as am ended,the Districtlevied a fire protection tax of$36 on persons owning residentialor com m ercialstructures and $28 on persons owning m obile hom es,whetheroccupied ornot, located w ho ly or partly w ithin the boundaries ofthe District. This tax is levied on each structure forthe purpose ofproviding fire protection and em ergency services. NO TE 8 -RESERVED AND DESIG NATFD FUND BALANCES The fo low ing is a sum m ary ofreserved and designated fund balances atjune 30,1998 and 1999: Debtservice Assetacquisition $ 210, $ 300, Total NO TE 9 -R ELATED PARTY TRA NSA CTIO N S There w ere no related party transactions thatcam e to ourattention during ouraudit 17

21 PA RISHW ID E FIR E PRO TEC TIO N DISTR IC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA NO TES TO FINA NC IA L STA TEM ENTS JU NE 30,1999 NO TE 10 -LITIGA TIO N There w as no litigation orpotentiallitigation apparentatjune 30,1998 or1999,that w ould have an im pacton the accom panying financialstatem ents. NO TE 11 -YEAR 2000 CO NSIDERATIO N The origin of the Year 2000 problem is a resultof additionalexpense and lim ited availability of m em ory that com puter program m ers w ere faced w ith w hen com puters first originated. Program m ers opted to abbreviate calendaryeas to digits w hich w illbecom e a problem on January 1,2000,w hen system s containing this tw o-digit code m ay interpret January 1,2000 as January 1,1900. The D istrictm ay be adversely afected by the "Y2K"problem,as itis being called, ifits com putersystem s and otherdate-sensitive equipm entdoes notprocess data from and after January 1,2000.Because the likelihood thatsuch a situation m ay occuris reasonably possible butan associated am ountofloss is undeterm inable,a contingentliability is notrecorded in the accom panying financialstatem ents. N O TE 12 -SU BSEQ tlent EV ENTS There w ere no subsequent events that w ould have a significant im pact on the accom panying financialstatem ents. 18

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23 PA RISHW IDE FIR E PRO TEC TIO N DISTRIC T O F EAST FELIC IA NA PA RISH,LO UISIA NA SC HEDULE O F DEBT SERVIC E REQ UIREM ENTS TO M ATURITY A S O F JUN E 30,1999 G eneralo bligation Bonds Y ear Principal Interest Total 2000 $ $ ,410 $ 156, , , ,625 94,000 81,625 68,500 54,625 40,000 24, Tota

24 ~ o o o ~ o o o o o ~ o o o ~ o o o o o ~..g ~ o o o o o ~-o o o ~ o o o o ~ o o o ~ c o o o o o o o o o ~ o ~ O d ~ ' '~ ~ ~ o o o ~ o o o o o o o o o ~...o o ~ o o o o o o o o ~ ~ ~ ~ ~ ~ '~ O ~ ~ ~ o ~..~..~..

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26 JO H N D.BUTLER & CO M PANY A PRO FESSIO NA[ ACCO UNIlNO CO RPO RAIIO N I~ O.BO X 30 BAKER.lO U ISIANA ) N D EPEN D ENT A U D ITO R'S R EPO RT O N INTER NA L C O NTR O L STR U CTU R E BA SED O N A N A U D IT O F G EN ERA L PU R PO SE FINA N C IA L STATEM ENTS PERFO RM ED IN ACC O RDANC E W ITH G OV ER NM ENT A UD ITING STA NDA RDS D ecem ber To the M em bers ofthe Board ofcom m issioners Parishw ide Fire Protection D istrictof EastFeliciana Parish,Louisiana P.O.Box 427 C linton.louisiana W e have audited the generalpurpose financialstatem ents ofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana,as ofjune 30,1999 and forthe tw o years then ended, and have issued ourreportthereon dated D ecem ber13,1999. W e conducted our audit in accordance w ith genera ly accepted auditing standards and G overnm enta uditing Standards,issued by the C om ptrollerg eneralofthe U nited States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance about w hetherthe generalpurpose financialstatem ents are free ofm aterialm isstatem ent. The m anagem entofthe Parish Fire Protection D istrictof EastFeliciana Parish,Louisiana is responsible for establishing and m aintaining an internal control structure. In fulfilling this responsibility,estimates and judgments by managementare required to assess the expected benefits and related costs ofinternalcontrolstructure policies and procedures.the objectives of an internalcontrolstructure are to provide m anagem ent w ith reasonable, but net absolute, assurance thatassets are safeguarded againstloss from unauthorized use ordisposition,and thai transactions are executed in accordance w ith m anagem ent's authorization and recorded properly to perm itthe preparation ofgeneralpurpose financialstatem ents in accordance w ith generally accepted accounting principles. Because ofinherentlim itations in any internalcontrolstructure, 23

27 To the M em bers ofthe Board ofcom m issioners D ecem ber13,1999 page 2 errors orirregularities may nevertheless occurand notbe detected. Also,projection ofany evaluation ofthe structure to future periods is subjectto the risk thatprocedures may become inadequate because ofchanges in conditions orthatthe effectiveness ofthe design and operation ofpolicies and procedures m ay deteriorate. In planning and perform ing ourauditofthe generalpurpose financialstatem ents ofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana,forthe yearended June 30,1999,w e obtained an understanding ofthe internalcontrolstructure. W ith respectto the internalcontrol structure,w e obtained an understanding ofthe design ofrelevantpolicies and procedures and w hetherthey have been placed in operation,and w e assessed controlrisk in orderto determ ine ourauditing procedures forthe purpose ofexpressing ouropinion on the generalpurpose financial statem ents and notto provide an opinion on the internalcontrolstructure.accordingly,w e do not express such an opinion. W e noted certain m atters involving the internalcontrolstructure and its operation thatw e consider to be reportable conditions understandards established by the Am erican Institute ofcertified Public Accountants. Reportable conditions involve m atters com ing to ourattention relating to significantdeficiencies in the design or operation ofthe internalcontrolstructure that,in our judgment,could adversely affectthe entity's ability to record,process,summarize and report financialdata consistentw ith the assertions ofm anagem entin the generalpurpose financial statem ents. The expenditures and cash balance ofthe bank accounts m aintained by the individualfire stations is notrecorded on the books ofthe District. This activity is not review ed orapproved by the D istrict. A m aterialw eakness is a reportable condition in w hich the design oroperation ofone orm ore of the specific internalcontrolstructure elem ents does notreduce to a relatively low levelthe risk that errors or irregularities in am ounts thatw ould be m aterialin relation to the generalpurpose financialstatem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse ofperform ing theirassigned functions. O urconsideration ofthe internalcontrolstructure w ould notnecessarily disclose allm atters in the internal control structure that m ight be reportable conditions and, accordingly, w ould not necessarily disclose allreportable conditions thatare also considered to be m aterialweaknesses as defined above. W e believe that the reportable condition described above is a m aterial w eakness. W e also noted otherm atters involving the internalcontrolstructure and its operation thatw e have reported to the m anagem entofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish, Louisiana in a separate letterdated Decem ber13,

28 To the M em bers ofthe Board ofc om m issioners Decem ber13,1999 page 3 This reportis intended forthe inform ation ofthe Board ofcom m issioners,m anagem ent,and the Legislative A uditor. How ever,this reportis a m atterofpublic record and its distribution is not lim ited. John D.Butler& C om pany A ProfessionalAccounting Corporation 25

29 JO H N D.BU rler & CO M PANY A PRO FESSIO NAI ACCO UNIlNG C()RPO RA1IO N I~ O.BO X 30 BAKER,LO U ISIAN A ) INDEPENDENT AUD ITO R'S R EPO RT O N C O M PLIAN C E BASED O N A N A U D IT O F G EN ERAL PU R PO SE O R BA SIC FINANC IA L STATEM ENTS PERFO RM ED IN AC CO RDA N W ITH G O VER NM ENT AU DITING STA NDA RDS D ecem ber To the M em bers ofthe Board ofcom m issioners Parishw ide Fire Protection D istrictof EastFeliciana Parish,Louisiana P.O.Box 427 C linton.louisiana W e have audited the generalpurpose financialstatem ents ofthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana,as ofjune 30,1999,and forthe tw o years then ended, and have issued ourreportthereon dated Decernber13,1999. W e conducted ourauditin accordance w ith generally accepted auditing standards,g overnm ent Auditing Standards,issued by the Com ptro lerg eneralofthe United States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance aboutw hetherthe generalpurpose financialstatem ents are free ofm aterialm isstatem ent. C om pliance w ith law s, regulations, contracts, and grants applicable to the Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana,is the responsibility ofthe Parishw ide Fire Protection Districtof East Fe/iciana Parish, Louisana's m anagem ent. As part of obtaining reasonable assurance aboutw hetherthe generalpurpose financialstatem ents are free ofm aterial m isstatem ent,w e perform ed tests ofthe Parishw ide Fire Protection D istrict of East Feliciana Parish,Louisiana's com pliance w ith certain provisions oflaw s,regulations,contracts,and grants. However,the objective ofourauditofthe generalpurpose financialstatementswas notto provide an opinion on overallcom pliance w ith such provisions. Accordingly,w e do notexpress such an opinion. 26

30 To the M em bers ofthe Board ofcom m issioners D ecem ber13,1999 page 2 M aterialinstances ofnoncom pliance consistoffailures to follow requirem ents,orviolations of prohibitions,contained in statutes,regulations,contracts orgrants thatcause us to conclude that the aggregation ofthe m isstatem ents resulting from those failures orviolations is m aterialto the generalpurpose financialstatem ents. The results of our tests of com pliance disclosed the follow ing instances of noncom pliance that m ay be m aterialto the generalpurpose financial statem ents butforw hich the ultim ate resolution cannotpresently be determ ined.accordingly,no provision for any liability thatm ay resulthas been recognized in the accom panying financial statem ents. The instances ofnoncompliance inlclude failure to (1)maintain an inventory listing in accordance with assetmanagementlaws;(2)prepare a budgetforthe yearended June 30,1999;(3)properly title bank accounts maintained by the individualfire stations;and (4)obtain oaths ofofice from allrepresentatives on the Board. W e considered these instances of noncom pliance in form ing our opinion on w hether the Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana's generalpurpose financial statem ents as ofjune 30,1999,are presented fairly,in allm aterialrespects,in conform ity w ith generally accepted accounting principles, and this report does not afect our report dated Decem ber13,1999,on those generalpurpose financialstatem ents. Exceptas described above,the results ofourtests ofcom pliance indicate that,w ith respectto the item s tested,the Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana com plied, in allm aterialrespects,w ith the provisions referred to in the third paragraph ofthis report;and w ith respectto item s nottested,nothing cam e orourattention thatcaused us to believe thatthe Parishw ide Fire Protection D istrictofeastfeliciana Parish,Louisiana had notcom plied,in all m aterialrespects,w ith those provisions. This reportis intended forthe inform ation ofthe Board ofcom m issioners,m anagem ent,and the Legislative A uditor. H ow ever,this report is a m atterof public record and its distribution is not lim ited. John D,Butler& Com pany A ProfessionalAccounting Corporation 27

31 PA RISHW IDE FIRE PRO TECTIO N DISTRICT O F EA ST FELIC IA NA PA RISH,LO UISIA NA SC HEDULE O F FINDING S A ND Q UESTIO NED CO STS Y EA R EN DED JUN E 30,1999 W e have audited the financialstatem ents of the Parishw ide Fire Protection D istrict of East Feliciana Parish,Louisiana,as ofjune 30,1999 and forthe tw o years then ended,and have issued ourreportdated Decem ber13,1999.w e conducted ourauditin accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm enta uditing Standards,issued by the Com ptro lerg eneralofthe U nited States. O ur auditofthe financialstatem ents as ofjune 30,1999,resulted in an unqualified opinion. Section I Sum m ary ofa uditor's Reports A. Reporton InternalControland Com pliance M aterialto the FinancialStatem ents nternalcontro M aterialw eakness Reportable Condition [] [] Yes Yes Com pliance Com pliance M aterialto F/S [] U ndeterm ined B FederalAw ards N/A Section II FinancialStatem entfindings 99.1 Station Activity W hile the tranfers from the Districtto the blended componentunits (stations)is recorded as an expense,the activity ofthe stations as w ellas the cash balances is notrecorded. This does not allow forapprovalofexpentitures. Italso does notallow fixed assets to be properly recorded in the generalfixed assetaccountgroup. O urrecom m endation is thatm onthly reporting from the stationsbe required so the District's bookscan be appropriately adjusted and the expenditures m ay be tim ely review ed Inventory Listing Assetm anagem entlaw s require thata fixed assetinventory be m aintained.the D istrictdoes not have such a listing. The financialstatem ents m ay be im pacted as theftorobsolescence m ay not be detected tim ely. W e recom m end thata standard form be created to include the required inform ation and then com pleted by each station. M anagem entshould periodically review the list and physica ly inspectthe assets. Continued 28

32 PA RISHW lde FIR E PRO TEC TIO N DISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA SCHEDULE OF FINDINGS AND QUESTIOND COSTS (Continued) Y EA R EN D ED JUN E 30, Budget A legally adopted budgetis required ofallpoliticalsubdivisions.w hile a budgetw as prepared at June 30,1998 and June 30,2000,the D istrictfailed to prepare a budgetatjune 30,1999. W e recom m end thatthe preparation and adoption ofan annualbudgetbe placed in the secretary's ticklerfile Bank AccountTitles T he bank accountopened by the individualstations w ere nottitled as directed by the Board of Commissioners. The accountshould read,"fire Protection District-(name ofstation)". W e recom m end thatthe titles be changed to avoid confusion w ith the accounts m aintained by the volunteerfire departm ents w ith funds otherthan D istrictfunds O ath ofo fice As a m em berofthe Board ofcom m issioners,a lrepresentatives should take an oath ofofice W e recom m end thatthis be done by those m em bers w ho have notalready done so. Section III FederalAw ard Findings and Q uestioned Costs N/A 29

33 JO H N D.BUTLER & CO M PAN Y A PRO FESSIO NAL ACCO UN]ING CO RPO RA]IO N E O.BO X 30 BAKER,LO U ISIAN A M A NA G EM ENT LETTER D ecem ber M em bers ofthe Board ofc om m issioners Parishw ide Fire Protection D istrictof EastFeliciana Parish,Louisiana P.O.Box 427 C linton.louisiana W e have audited the financialstatem ents of the Parishw ide Fire Protection Districtof East Feliciana Parish,Louisiana as ofjune 30,1999,and forthe tw o years then ended,and have issued ourreportthereon dated D ecem ber13,1999. During the course ofourexam ination,w e becam e aw are ofthe follow ing m atters w hich represent suggestions forim proved internalcontrols. M A NA G EM ENT PO INTS M 99.1 PA ID INV O IC ES C ondition:evidence ofpaym entis notalw ays presenton the face ofallinvoices. Effect:Invoices m ay be paid tw ice,and approvalis not9uaranteed. R ecom m endation:paym ents should be m ade from invoices. The invoice should be m arked 'Paid'along w ith the date,check num berand signature orinitials ofthe appropriate authority. If paym entis m ade from a statem ent,the supporting invoices should be attached. M 99.2 R EIM BU R SEM ENTS C ondition:r eim bursem ents to firem en do notalw ays include appropriate support. Effect:C ontroloverexpenditures is w eakened. R ecom m endation: A ppropriate planning should be m ade in order to m inim ize required reim bursem ents to firem en. W hen m ade,an invoice should be attached to the w ritten requestfor reim bursem entthatsupports the claim. The sam e procedures m entioned in Point99.1 above should be fo low ed in regards to the disposition ofthe invoice. 30

34 To the M em bers ofthe Board ofcom m issioners Decem ber13,1999 page 2 M 99.3 M O NTHLY REPO RTING BY STATIO NS C ondition:the legality ofsom e expenditures m ade by individualstations is questionable. Effect:Compliance with laws and regulationsmay be in jeopardy. Recom m endations: C urrently,transfers m ade to the individualstations'bank accounts are reported as expenses.these accounts are noton the books ofthe District.W e recom m end that each station provide m onthly reporting ofthe changes to theirrespective accounts each m onth listing allchecks,payees and am ounts. This w illallow the Board to review the expenditures to ensure thatallexpenditures are appropriate. W e recom m end thatm anagem entaddress the foregoing issues as an im provem entto operations W e are available to furtherexplain these suggestions orhelp im plem entthe recom m endations Sincerely, ~y~ ~ ~'~ - John D.Butler& C o..a PAC 3 1

35 PA R ISHW ID E FIR E PRO TEC TIO N DISTRIC T O F EAST FELIC IA NA PA RISH,LO UISIA NA SUM M A RY SC HEDULE O F PRIO R YEA R FINDING S Y EA R END ED JU NE 30,1999 Section I InternalC ontroland C om pliance M aterialto the FinancialStatem ents None Reported Section II InternalC ontroland C om pliance M aterialto FederalAw ards N/A Section III M anagem entletter N/A 32

36 PA RISHW IDE FIRE PRO TECTIO N DISTRIC T O F EA ST FELIC IA NA PA RISH,LO UISIA NA M A NA G EM ENT'S CO RR E'C TIVE A C TIO N PLA N YEAR ENDED JUNE 30,1999 Section I InternalControland Com pliance M aterialto the FinancialStatem ents 99.1 Station Activity M anagem entw illconsultw ith the auditors and independent C PA to furtherdiscuss appropriate action to properly approve and report activity atthe stations Inventory Listing The fire chiefs ateach station have prepared this listing. Review w illbe m ade periodically Budget This w as an oversight Bank AccountTitles M anagem entw illim m ediately requestthatthe titles ofstation accounts be changed accordingly O ath ofo fice This w illbe discussed atthe nextregularly scheduled m eeting. Section fl InternalC ontroland C om pliance M aterialto FederalAw ards N/A Section III M anagem entletter M 99.1 Paid Invoices Contact:R ichard Dudley Plan:Procedures w ilbe discussed w ith each fire chief. Com pletion D ate:2/00 M 99.2 Reim bursem ents M 99.3 M onthly Reporting by Stations Contact:Fire Chiefs Plan:Procedures w illbe discussed w ith each firem an. Com pletion D ate:2/00 Contact:Richard Dudley Plan:Reporting policies w illbe form ulated. Com pletion D ate:4/00 33