WATERWORKS DISTRICT NO. 1 O F CA DDO PAR ISH, LOUISIANA GENERAL PURPO SE FINANC IA L STATEMENT S FOR THE YEAR EN DE D JULY 31, 2002

Size: px

Start display at page:

Download "WATERWORKS DISTRICT NO. 1 O F CA DDO PAR ISH, LOUISIANA GENERAL PURPO SE FINANC IA L STATEMENT S FOR THE YEAR EN DE D JULY 31, 2002"

Maria Fletcher
5 years ago
Views:

1 WATERWORKS DISTRICT NO. 1 O F CA DDO PAR ISH, LOUISIANA GENERAL PURPO SE FINANC IA L STATEMENT S FOR THE YEAR EN DE D JULY 31, 2002

2 WATERWORKS DISTR ICT NO. 1 O F CA DDO PA RISH, LOU ISIANA General Purpose Financial Statem ents For the Year Ended Ju ly 31, 2002 Table of Contents Exh ib it Page Indep endent Accountant s ' Comp ilation Report 1 Genera l Purp ose Financial Statements Balance Sheet Statem ent of Revenues, Expenses and Changes in Retained Earnings Statem ent of Ca sh Flow s Notes to Financial Statem ents Indep endent A ccountants ' Report on App lying A greedupon Procedures A dditional In form ation Statem ent of Revenues, Expenses and Changes in Retained Earn ings Budgeted and A ctual A 1819 Schedule of Per Diem o f Comm issioners Louisiana Attestation Questionnaire B

3 C ERT IFIED PU B LIC A CC O U N TA N TS M EM BERS OF AMERICAN institute O~" C AR I;Y W.PENN,C PA JOHN H.S M ITH,C PA 15 1 F'REESTAT BLVD.,SUITE a SHREVEPORT,LOUlSFANA December 16, ;8 / FAX 3 18 / B oard o f Comm issioners W aterworks District No. 1 of Caddo Parish, Louisiana O il C ity, Lou isiana W e have com p iled the accomp anying general purp ose financial statem ent s o f the Waterwo rks District No. 1 o f Caddo Parish, Louisiana, as of and for the year ended July 31, 2002, as listed in the tab le of contents, in accordance w ith Statem ents on Standard s fo r A ccounting and Review Service s issued b y the Am erican Institute of Certified Public A ccoun tants. A compilation is limited to presenting in the form of financial statements information that is the representation of managem ent W e h ave not audited o r rev iewed the accomp anying fin ancial statements and, accordingly, do not express an opinion or any other form o f assurance on them. In accordance with the Louisiana Governm ental A udit Guide and Statem ent on Standards for A ttestation Engagem ents issued b y the Am erican Institute of Certified Public A ccountants, we have also issued our report, dated December 16, 2002, on applying agreed up on p rocedu res relating to the assertion s contained in th e Louisiana Attestation Questionnaire. The additional information listed as Exhibits A and B in the tab le o f contents is p resented for purposes of additional in form ation and is not a required part of the financial statem ents o f the Wate rworks District No. i o f Caddo Parish, Louisiana. The information in these schedules has been subjected to the same procedures applied in the compilation of the general purpose ts Penn & Sm ith Certified Pub lic A ccountants

4 WATERW ORKS DISTR ICT NO. 1 O F CA DDO PAR ISH, LOUISIANA Balance Sheet July 31, 2002 Current A ssets : Cash A ccoun ts receivab le A ccrued in terest receivab le Prep aid expen ses A SSETS Total current assets 271,77 9 Restricted A ssets : Ca sh Inve stm en t s, at co st Total restricted assets 2 6, ,058 Fixed A ssets Prop erty, plant and equipment Less : accumulated dep reciation N et fixed a sset s 1,675,553 1,22 9, ,380 Total A ssets See accomp anying note s and accountants ' compilation report 2

5 Exhib it 1 LIA BILIT IES AN D EOUITY Liab ilities : Current Liabilities (payable from current assets): A ccounts payab le Taxes payab le Total current liabilities (payable from current assets) Current Liabilities (payable from restricted assets): Custom er deposits A ccrued in terest payable Current m aturities of long term debt Total current liabilities (payable from restricted assets) 6, ,403 42,190 2, ,113 net o f current Total L iabilities 211,516 E qu ity : Retained Earnings Un reserved Total Equity Total Liab ilities and Equity :217 See accomp anying notes and accountants ' comp ilation rep ort 3

6 Exhib it 2 WATERWORKS DISTRICT NO. 1 O F CA DDO PARISH, LOU ISIANA Statem ent of Revenues, Expenses and Changes in Retained Earn ings For the Year ended Ju ly 31, 2002 Operating Revenues : W at e r sales Sew er collection fees Connection fees Serv ice charges Fire hydrant rental M isce llaneou s Fin e s Pen alties Total operating revenues Operating Expen ses : L ab fees Certification Chem icals Comm issioners exp en se Dep reciation Distribution system Equ ipm ent rep air Gas, oil, diesel In s u r a n c e Lega l and accounting M is cel lan eou s O ffice Payroll taxes Plant M ainten ance Tools and supplies T ru ck an d b ackh o e utilities Uni form s Con sulting W ages T otal operating expenses Net in com e from op eration s 254, ,487 4,110 55,871 9, ,325 13,7 69 3,147 4,554 3,806 6,406 4,886 2,015 1,916 13, O 8 3, , ) (continued 4

7 Exh ib it 2 (cont 'd) WATERWORKS DISTR ICT NO. 1 O F CA DDO PA RISH, LOUISIANA Statem ent of Revenues, Exp en ses and Changes in Retained Earnings For the Year Ended July 31, 2002 Nonoperating Revenues (Expenses Ad Valorem taxes Revenue sharing Interest incom e Interest expen se Total nonoperating revenues (expenses) , o147 Retained Earn ings at end o f yea r $568 ~701 See accomp anying notes and accountants ' comp ilation report 5

8 E xh ib it 3 WATERWORKS DISTRICT NO. 1 OF CA DDO PAR ISH, LOU ISIANA Sta tem en t o f Ca sh Flow s For the Year Ended July, 31, 2002 Cash Flow s from Operating A ctivities : Cash received from cu stom ers Ca sh paid to supp liers for goods and service s Ca sh paym en ts to employees for services Net cash p rovided by ope rating activities Cash Flow s from Noncapital Financing A ctivities Ad valorem taxes received Revenue sharing $ 253,838 (121,850 ( ,241 10, Net cash p rovided by non capital financing activitie s 10,866 Cash Flows from Capital and Related Financing A ctivities (25,707 (18,000 ( 8,909 Net cash p rovided by cap ital and related financing activities ( 52,616 Cash Flow s from Investing A ctivities In tere st on investm ents Net cash p rovided by investing activities Net increase (decrease) in cash ,372 Cash at beginning of year (including $ 61,777 in restricted accounts) 281,377 Cash at end of year (including $ 62,058 in restricted accounts) con tinued 6

9 Exhib it 3 (cont 'd ) WATERWORKS DISTR ICT NO. i O F CA DDO PARISH, LOUISIANA Statement of Cash Flow s For the Year Ended July, 31, 2002 Reconciliation o f Operating Incom e to Net Cash Provided b y Operating A ctivities Operating incom e Adjustments to Reconcile Prov ided b y Operating Operating Incom e to Net Cash A ctivities : Depreciation exp ense Changes in A ssets and Liab ilities : (Increase )in accounts receivable (Increase )in accrued interest receivable (Increase)in prepaid insurance (Decrease)in accounts payable (Decrease)in taxes payable (Decrease)in customers ' deposits (Decrease)in accrued interest payable Total adjustments $ ( 284) 55,87] 48,525 Net cash provided by operating activities $ 48,2Ji See accomp anying notes and accountants ' comp ilation repo rt 7

10 WA TERWOR K S DISTR ICT NO. 1 O F CA DDO PAR ISH, LOUISIANA Notes to Financial Statem ents A s of and for the year ended July 31, 2002 In trodu ct ion : The Waterworks District No. 1 of Caddo Parish, Louisiana (District ) was established by the Caddo Parish Police Jury (Caddo Parish Comm ission ) in The District is considered a specialpurpo se governm ent and is fiscally independe Caddo Pa rish Comm ission. A lthough the Caddo Parish as elected officials, appoint six (6) of the eight ( members, the Caddo Parish Comm ission is not financia accountable for the District because their appointm e is not substantive and the Caddo Parish Comm ission d the ab ility to impose its will on the District. The District is not considered a component unit of the C Comm ission o f th e mm i ssion, b o a rd Y a u thority s n for do o t h ave e, the Pa r i sh The District has eight (8) Board members and they are compensa ted on a per diem basis. The District has four emp loyees i. Summ ary of Significant A ccounting Policie s A. Ba sis of presentation B. Reporting entity The District is the b asic level o f governm ent wh ich has financial accountab ility and control over all activities rela ted to the District operations and services provided. The District is not included in 8

11 W ATERWORKS DISTR ICT NO 1 O F CA DDO PAR ISH, LOU ISIANA Notes to Financial Statements (continued) A s of and for th e year en din g Ju ly 31, 2002 C. Fund accountin g : The District uses funds to rep ort on it s ' fin anc ial position and the results of its ' operation s. Fund accounting is designed to demonstrate legal comp liance and to aid financial m anagem en t b y segrega ting transactions related to certain government functions or activ ities. The Waterworks District No. 1 of Caddo Parish, Louisiana is accounted for using a proprietary fund. Proprietary funds are used to account fo r activ itie s sim ila r to those found in the private sector, where (a ) the intent is that costs, including dep reciation, of p rov iding good s and serv ices to the general pub lic on a continu ing b asis be financed o r recovered p rim arily through user charges, and (b ) the determination of net income is necessary or useful to sound financial adm inistration. D. Basis o f accounting Prop rietary funds are accounted for on a flow of econom ic resources m easurem ent focu s. W ith th is m easurem ent focu s, all assets and liab ilities associated w ith the operation of th is fund are in cluded on the balance sheet. E. Budgets : Budget s are included in these financial statem ents for inform ational proposes as a management tool and are adopted on a b asis con sistent w ith generally accepted accounting p rincip les. A ll annual app rop riation s lap se at fiscal year end. F. Bad deb ts : Uncollectab le am ounts due from cu stom ers ' receivab les are charged again st earnings at the tim e in form ation becom es 9

12 WATERWORKS DISTR ICT NO i O F CA DDO PA R ISH, LOUISIANA Notes to Financial Statements (continued) A s o f and for the year ending July 31, 2002 availab le which indicates the p articular account is uncollectable. Although this m ethod does not conform to gene rally accepted accounting p rincip les, the am ounts charged do not m aterially differ from those determ ined under generally accep ted accounting p rin cip les. G. Compen sated ab sence s Vacation policy of two weeks per year does not accrue, th erefore, no liabili ty for compen sated ab sences exists H. Restricted assets Restricted assets are comprised of the follow ing three categories : Cash in the m eter depo sit fund checking account and in the m eter deposit fund certificate of deposit. The total am ount to secure the m eter deposits at July 31, 2002 is $ 42,190. Cash in a checking account for purposes of debt serv ice a s p re scribed by a Certificate of Indeb tedness dated October 7, 1998 in the amount of $ 210,000 (See Note 6). The total am ount restricted for deb t service at July 31, 2002 is $ 19,869. I. Fixed assets Fixed assets are stated at cost, and dep reciation is p rovided in an am ount su fficient to relate that cost to ope rations over the estim ated service life. 18

13 WAT ERW ORK S DISTR ICT NO 1 O F CA DDO PARISH, LOUISIANA Notes to Financial Statements (continued ) As of and for the year ending July 31, Cash C ash con sist s of am ount s in dem and dep o sits and intere st bearing checkinq accoun ts. All of these amoun ts are secured by federal depository insurance. 3. Investm ents Inve stm ents con sist of certificates of depo sit in variou s ban ks and are stated at co st, all of which are secured b y federa l dep ository insu rance. 4. A d Valorem Taxes Taxes attach as an en forceable lien on p roperty as of January 1 of each year. Taxes are levied by the District on rea l and b usiness personal property located w ithin its bound aries. The taxe s are lev ied on p rop erty value s assessed by the Caddo Parish Tax A ssessor and approved b y the State of Louisiana Tax Comm ission. Property tax revenues are recognized when levied to the extent tbat they result in cu rrent receivables. Fo r the year 2002, 5.34 m ills were levied on property for the operation and m aintenance of the water system 5. Fixed A ssets The following is a summ ary of changes in fixed assets during the fiscal year : B alan ce Ju ly 31, 2001 Add Balance Delete July ZI, 2002 L and Build ings Equipm ent 5, , , , , , Totals!: m ~ 615~_553 ii

14 WATERWORKS DISTR ICT NO i OF CA DDO PARISH, LOUISIANA Notes to Financial Statements (continued ) A s of and for the year ending July 31, 2002 Fixed assets are dep reciated u sing the straightline m ethod over the estim ated useful lives o f the assets. Dep reciation expense for the year ended July 31, 2002 was $ 55, Long Term Deb t A Certificate o f Indeb tedness dated October 7, 1998 for the specific pu rpo se o f p lant imp rovem ents in the am ount o f $ 210,000. Interest accrues at a rate of 5.5% and is payable sem iannually. Principal m aturities over the next five years are as follow s Year Ended Th erea fter 12

15 C ERTIFIED PU B LIC AC C O U N TA N TS M EMBERS OF AM ERICAN INSTITUTE OF CARE:Y W.PENN,C PA JOHN H.S M ITH,C PA 15 1 FREESTATE BLVD,,SUITE B SHREVEPORT*LOUISIANA 7 1I / FAX 3 18 / December 16, 2002 Board o f Comm issioners Waterwo rks District No. 1 of Caddo Parish, Louisiana Oil City, Louisiana We have performed the procedures included in the Louisiana Governm ent Audit Guide and enum erated b elow, wh ich were agreed to by the m anagem ent of the W aterworks District No. 1 o f Caddo Parish, Louisiana and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating m anagement 's assertions about the W aterworks District No. 1 of Caddo Parish, Louisiana 's comp lian ce with certain laws and regulation s during the year ended July 31, 2002, included in the accompanying Louisiana Attestation Questionnaire. This agreedupon procedures engagem ent was perform ed in accordance with the standards estab lished by the Am e rican In stitute o f Ce rtified Pub lic accountants. The su fficiency of these p rocedures is solely the respon sib ility of the specified users of the report. Con sequ ently, We m ake no rep resentation regarding the su fficiency of the procedures described below either for the purpose for wh ich th is report has b een requested or for any other p urpose. 1 Pub lic B id Law No exception s or v iolations of the Pub lic Bid Law were no ted. Code of Zth ics for Pub lic O fficials and Pub lic Zm~ loyee s 2 Ob tain from m anagem ent a list of the imm ediate fam ily m em bers o f each board m ember as defined in LSA R S 42 : (the code of ethics), and a list of outside business interests of all board m embers and employees, a s w ell as their imm ediate fam ilies. 13

16 Management p rovided us with the required list includi ng the noted in form ation. 3 Ob tain from management a listing of all emplo yees paid during the period under exam ination. M anagem ent p rovided u s with the requested list. Determ ine whether any of those em ployees included i listing n the ob tained from m anagem ent in agreed (3] were also in cluded on the listing ob tained upon from procedures management in agreedupon procedure (2) as immediate family m em b e rs. None of the emp loyees included on the list of em p loyees provided by management agreedupon procedures (3) appeared on the list p rov ided by m anagem ent in agreed (2). upon procedure Budqetinq 5 Obtain a copy of the legally adopted budget and all am endm ent s. M anagem en t p rov ided u s with a copy of the original and am ended budget. 6. Trace the budget adoption and am endm ents t o the m inute book. We traced th e adoption of the original budget to th e m inu te s of a m eeting held on July 17, 2001, where the b udge t was unanim ously adop ted. A ll am endm ents were traced to the 2001/02 minutes records. 7 Compare the revenues and exp en ses of the final budget t o actual revenues and expenses to determine if actual re v e n u e s or expenses exceed budgeted am ounts by m ore than 5%. W e compared the revenues and expenses of the final bud get to actual revenues and expenses. Variations were explainab le. A ccounting and ReDortin Random ly select 20 disbursem ents m ade during the period under exam ination and : (a j trace payments to supporting documentation as to proper am ount and p ayee ; 14

17 W e exam ined supp orting documentation for each of the twenty selected disbursem ents and found that paym ent wa s fo r the p rop er am ount and m ade to the correct payee. b determ ine if paym ents were p roperly coded to the correct fund and general ledger account ; and A ll paym ents were p roperly coded to the correct fund and general ledger account. c determ ine whether paym ents received app roval from p rop er authorities. In spection of docum entation supporting each of the twenty selected disbursem ents indicated app rovals from the Board In addition, each o f the disbursem ents were traced to the m inute book where they were rev iewed and app roved for paym ent by the full board. Meetinqs 9 Exam ine evidence indicating that agendas for m eetings recorded in the m inute book were p osted or advert ised as required by LSARS 42 :1 through 42 :12 (the open meeting law.) M anagem ent has a sserted that such docum ents were properly p osted on the door of the District 's office bu ild ing. We reviewed approved, dated documentation to support the assertions by m anagem ent. Debt i0 Exam ine bank dep osits determ ine whether any b ank loan s, bonds, or for the period under such deposits appear like indeb tedne ss. exam ination and to be p roceeds of Advances and Bonuse s ii. Exam ine payroll records and m inutes for the year to determ ine whether any paym ents have b een m ade to emp loyees which m ay constitute bonu ses, advance, or gifts. 15

18 A reading of the m inutes of the Dis%rict f or the year indicated no approval for the paym ents not ed. W e also inspected payroll records for the year and noted no in stances which would indicate paym ents to emp loyees which would con stitute bonuses, advan ces, or gifts. W e were not engaged to, and did not, p erform an exam ination, the objective of which would be the expression of an opinion on management 's assertions. A ccordingly, we do not express such an op inion. Had we perform ed additional p rocedures, other m atters m ight have com e to our attention that would have b een rep orted to you. of s repo rt is a lim ited. th e use of m anagem en t o f th e Pa fish, Louisiana, and the ia na, and should n ot be used P ken rocedures and ta th e p rocedu re s m atter o f pub lic fo r their record and Certified Pub lic A ccountants 16

19 A DDIT IONAL IN FORMAT ION

20 Exh ibit A WATERWORKS DISTRICT NO. 1 O F CA DDO PAR ISH, LOU ISIANA Statem ent of Revenues, Expenses and Changes in Retained Earnings Budget and A ctual Year Ended July 31, 2002 W ith Comp arative Amounts as o f Ju ly 31, 2001 Budget V ariance Favorab le Actual (Unfavorable ) Actual Se rv ice ch arges Fire hydrant rental M iscellaneous incom e Fines Penalties I 000 4O0 85O OO 225,163 5, ,120 1, _ 7,990 To tal operating revenues 257, ,536 (3,264} 240,823 Operating Expen ses : Lab fees Bad deb ts Cert ification Chem icals Comm ission ers exp en se Depreciation Distribution system Equipm ent repair Ga s, oil and d iesel In s u r a n ce Legal and accounting M iscellaneous O ffice Payroll taxes Plant m aintenance T ools and T ruck and Utilities W age s supp lies backhoe ,000 4,200 37,000 8, ,350 18,000 3,600 2,300 4,000 6,400 4,500 2,200 1,900 14,200 83, ,487 4,110 55,871 9, ,325 13,769 3,147 4,554 3,806 6,406 4,886 2,015 1,916 13,790 83, (3) 5, ,871) (1,230) (72) 1,025 4, {2,254] 194 (6) (386) 185 (16) 410 (247) ,165 5,330 53,602 10, , ,286 3,139 4,603 4,368 5,939 1,887 2,129 1,813 15,850 77,

21 Exhib it A (cont 'd) WATERWORKS DISTR ICT NO. 1 O F CA DDO PARISH, LOUISIANA Statem en t of R evenues, Exp enses and Charges in Reta ined Earnings Budget and A ctual Year Ended July 31, 2002 With Comp arative Am ounts as of July 31, 2001 Budget V a r i an c e Favorab le Actual {Unfavorable) Actual Uniform s U n em p loym en t Con sulting 1, (1601 1, Total operating exp enses 244, (i0, Net incom e from operations 13,510 (284) (13,794) (22,143 Non op erating Revenues (Expenses): A d valorem taxe s Revenue sharing Interest incom e Interest expense 821) , ,522 (9,890 Total nonoperating revenues (expenses) 7,935 14,838 6,903 18,081 Net income (loss) 21,445 14,554 (6,891) (4,062 Retained earnings at b eginning of year 554, , Retained earnings at end of year 5~,5~ 2 ~6~L791 ~=6~891) 554,147 19

22 Exhib it B WATERWORK S DISTRICT NO. 1 O F CA DDO PA R ISH, LOU IS IA NA Schedule o f Per Diem of Comm issioners Year ended July 31, 2002 N am e Clara N o rr is V irginia Sim s No. of days ii i0 Am ou n t $ Charles R. Hen sley H an cell H. Dic key Richard A nderson Garland Kaylor Garry Hop kin s Donald Rodgers 12 i0 ii $4_# ii0 20

23 WATERWORKS DISTRICT NO. 1 OF Caddo Parish, Louisiana O il City, Louisiana LOUISIANA ATTESTATION QUESTIONNAIRE Decemb er 16, 2002 John H. Sm ith Penn & Sm ith Certified Pub lic A ccountants 151 Freestate Boulevard Shreveport, Lou isiana In connection w ith your comp ilation of our finan cial statem ents as o f July 31, 2002, and for the period then ended, as required by Lou isiana R evised Statute 2 4 :513 and the Lou isian a Governm ental A udit Guide, we m a ke the following rep resentations to you. We accept full respon sib ility for your comp liance w ith the following laws and regulations and the internal controls over comp liance w ith such law s and regulations. W e have evaluated ou r compliance w ith the follow ing law s and regulation s p rior to m akin g th e se rep re sentation s. These representations are based on the inform ation available to us as o f July 31, Pub lic Bid Law Code of Eth ics for Pub lic O fficials and Pub lic Emp loyees It is true that no employees or officials have accep ted an yth ing of value, whether in the form of a service, loan, or p rom ise, from anyone that w ould constitute a violation of LSA R S 42 : Yes {x } No { } Yes{x } No { }

24 o f the budget Yes {x } No { } A ccounting and Reporting A ll nonexem p t records are available as public record and have b een retained for at least three years, as required by LSA RS 44 :11, 44 :7, 44 :31, and 44 :36. Yes {x } No { } W e have filed our annual financial statem ents in accordance w ith LSARS 24:514, 33 :463, and/or 39:92, as applicable. Yes {x } No { } W e have had our financial statem ent comp lied in accordance with LSA RS 24 :513. Yes {x } No { } of the Open M eeting Law, Yes {x } No { } Deb t It is true we have not incurred any indebtedness, other than credit for 90 days or less to m ake purchases in the ordinary course o f adm inistration, nor have we entered in to any leasepurchase agreem ents, without the app roval of the State Bond Comm ission, as p rovided by A rticle V II, section 8 of the 1974 Louisiana Con stitution, A rticle V I, section 33 of the 1974 Lou isiana Con stitution, and LSA RS 47 : Yes {x } No { } Yes {x } No { } We have disclosed to you all known noncomp liance of the foregoing law s and regulations, as well as any contradictions to the foregoing rep resentation s. We have m ade availab le to you docum entation relating to the foregoing law s and regulations.

25 ~P'gesiaent " ~ ~ D ate _ /.& Daze Iq b ~

/z)l,f. ReleaseDate 5 '~'b'~:~ L DECEMBER 31, 2003 VERM IL ION PA R ISH A SSESSOR FINANC IA L REPORT

/z)l,f. ReleaseDate 5 '~'b'~:~ L DECEMBER 31, 2003 VERM IL ION PA R ISH A SSESSOR FINANC IA L REPORT /z)l,f VERM IL ION PA R ISH A SSESSOR FINANC IA L REPORT DECEMBER 31, 2003 ReleaseDate 5 '~'b'~:~ L C O N T E N T S Page INDEPENDENT A UDITOR 'S REPORT i FINANCIAL STATEMENTS Cor~bined balance sheet all