VILLAGE OF SIMPSON ANNUAL FINANCIAL STATEMENTS WITH AUDITOR'S REPORT. June 30, 2005

Transcription

1 KJW-S VILLAGE F SIMPSN ANNUAL FINANCIAL STATEMENTS WITH AUDITR'S REPRT June 30, 2005 Under prvisins f state law, this reprt is a public dcument. Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available frpubiic inspectin at the Batn Ruge ffice f the Legislative Auditr and, where apprpriate, at the ffice f the parish clerk f curt. Release Date ~

2 VILLAGE F SIMPSN TABLE F CNTENTS Statement INDEPENDENT AUDITR'S REPRT 1-2 Management's Discussin and Analysis 3-8 BASIC FINANCIAL STATEMENTS: Statement f Net Assets A 9 Statement f Activities B 10 Balance Sheet - Gvernmental Funds C 11 Recnciliatin f the Gvernmental Funds Balance Sheet T Statement f Net Assets C 12 Statement f Revenues, Expenditures and Changes in Fund Balances - Gvernmental Funds D 13 Recnciliatin f the Statement f Revenues Expenditures and Changes in Fund Balance f Gvernmental Funds t the Statement f Activities D 14 General Fund - Statement f Revenues, Expenditures and Changes in Fund Balances - Budget and Actual E Statement Revenue, Expenditures and in Net Assets F-l 17 CDBG - Prgram # Schedule f Prgram Csts F-2 18 Statement f Net Assets - Prprietary Fund G 19 Statement f Revenues, Expenses, and Changes in Net Assets - Prprietary Fund H 20 Statement f Cash Flws - Prprietary Fund I Ntes t the Financial Statements 23-33

3 VILLAGE F SIMPSN TABLE F CNTENTS Schedule Pagefs' Required Supplemental Infrmatin 34 Schedule f Per Diem Paid t Bard Members 1 35 Schedule f Prir Year Audit Findings 2 36 Schedule f Crrective Actin Plan Fr the Current Year Audit Findings 3 37 Reprt n Cmpliance and n Internal Cntrl ver Financial Reprting Based n an Audit f Financial Statements Perfrmed in Accrdance with Gvernmental Auditing Standards

4 ELLITT & ASSCIATES, INC. A Prfessinal Accunting Crpratin P.. Bx 1287 Leesville, Luisiana (337) W. Micheal Ellitt, CPA (337) Fax INDEPENDENT AUDITR'S REPRT The Hnrable Dnnis Brinkley, Mayr and Members f the Bard f Aldermen Village f Simpsn: I have audited the accmpanying financial statements f the gvernmental activities, the business-type activities and each majr fund, f the Village f Simpsn, Luisiana, as f and fr the year ended June 30, 2005, which cllectively cmprise the Village's basic financial statements as listed in the table f cntents. These financial statements are the respnsibility f the Village f Simpsn Luisiana's management. My respnsibility is t express an pinin n these financial statements based n my audit. I cnducted my audit in accrdance with auditing standards generally accepted in the United States f America, and the standards applicable t financial audits cntained in Gvernmental Auditing Standards, issued by the Cmptrller General f the United States. Thse standards require that I plan and perfrm the audit t btain reasnable assurance abut whether the financial statements are free f material misstatement. An audit includes examining, n a test basis, evidence supprting the amunts and disclsures in the financial statements. An audit als includes assessing the accunting principles used and significant estimates made by management, as well as evaluating the verall financial statement presentatin. I believe that my audit prvides a reasnable basis fr my pinin. In my pinin, the financial statements referred t abve present fairly, in all material respects, the respective financial psitin f the gvernmental activities, the business - type activities, and each majr fund f the Village f Simpsn, Luisiana, as f June 30, 2005, and the respective changes in financial psitin and cash flws, where applicable, theref and the respective budgetary cmparisn fr the general fund fr the year then ended in cnfrmity with accunting principles generally accepted in the United States f America.

5 The Hnrable Dnnis Brinkley, Mayr Village f Simpsn, Luisiana cntinued In accrdance with Gvernment Auditing Standards, I have als issued my reprt dated Nvember 5, 2005, n my cnsideratin f the Village f Simpsn, Luisiana's internal cntrl ver financial reprting and y tests f its cmpliance with certain prvisins f laws, regulatins, cntracts, and grants. That reprt is an integral part f an audit perfrmed in accrdance with Gvernmental Auditing Standards and shuld be read in cnjunctin with this reprt in cnsidering the results f my audit. My audit was cnducted fr the purpse f frming an pinin n the financial statements that cllectively cmprise the Village f Simpsn, Luisiana's basic financial statements. The schedules f per diem paid t bard members, prir year audit findings, and current year audit findings are presented fr purpses f additinal analysis and are nt a required part f the basic financial statements. The schedules f per diem paid t bard members, prir year audit findings, and current year audit findings have been subjected t the auditing prcedures applied in the audit f the basic financial statements and, in my pinin, is fairly stated in the all material respects in relatin t the basic financial statements taken as a whle. The schedules f per diem paid t bard members, prir year audit findings and current year audit findings have nt been subjected t the auditing prcedures applied in the audit f the basic financial statements and, accrdingly, I express n pinin n them. This reprt is intended fr the infrmatin and use f management and the Bard f Cmmissiners, state awarding agencies and the Luisiana Legislative Auditr's ffice f the State f Luisiana and is nt intended t be and shuld nt be used by anyne ther than these specified parties. Under Luisiana Revised Statue 24:513, this reprt is distributed by the Legislative Auditr as a public dcument. Leesville, Luisiana Nvember 5, 2005

6 Village f Simpsn Simpsn, Luisiana MANAGEMENT'S DISCUSSIN AND ANALYSIS This sectin f Village's annual financial reprt presents ur discussin and analysis f the Village's 's financial perfrmance during the fiscal year that ended n June 30, Please read it in cnjunctin with the Village's financial statement, which fllws this sectin. Cmparative analysis will be prvided in future years when prir year infrmatin is available. FINANCIAL HIGHLIGHTS * The Village's cmbined ttal net assets increased by $7,333 r 1.2% ver the curse f this year's peratins. Net assets f ur gvernmental activities increased apprximately $11,245 r 22.40% and decreased apprximately $3,912, nearly.85% in the net assets f ur business-type activities, * During the year, the Village's expenses were $11,245 less than the $54,562 generated in charges fr services, taxes and ther revenues. In the Village's business-type activities, expenses were $3,912 mre than the $68,141 generated in revenues. * The general fund reprted a $54,463 fund balance fr the year. VERVIEW F THE FINANCIAL STATEMENTS this annual reprt cnsists f three parts - managements' discussin and analysis (this sectin), the basic financial statements and required supplementary infrmatin. The basic financial statements include tw kinds f statements that present different views f the Village: * The first tw statements are gvernment-wide financial statements that prvide bth lng-term and shrt-term infrmatin abut the Village's verall financial status. * The remaining statements are fund financial statements that fcus n individual parts f the Village's gvernment, reprting the Village's peratins in mre detail than the gvernment-wide statements. * The gvernmental fund statements tell hw general gvernment services, like public safety, were financed in the shrt term as well as what remains fr future spending. * Prprietary fund statements ffer shrt and lng-term financial infrmatin abut the activities the gvernment perated like businesses, such as water and sewer system. The financial statements als include ntes that explain sme f the infrmatin in the financial statements and prvide mre detailed data. The statements are fllwed by a sectin f required supplementary infrmatin that further explains and supprts the infrmatin in the financial statements. In additin t these required elements, we have included a sectin with cmbining statements that prvide details abut ur nnmajr gvernment funds, which are added tgether and presented in single clumns in the basic financial statements The remained f this verview sectin f the management's discussin and analysis explains the structure f cntents f each f the statements.

7 Village f Simpsn Simpsn, Luisiana MANAGEMENT'S DISCUSSIN AND ANALYSIS Gvernment-wide Statements The gvernment-wide statements reprt infrmatin abut the Village as a whle using accunting methds similar t thse used by private-sectr cmpanies. The statement f net assets includes all f the gvernment's assets and liabilities. All the current year's revenues and expenses are accunted fr in the statement f activities regardless f when cash is received r paid. The tw gvernment-wide statements reprt the Village's net assets and hw they have changes. Net assets - the difference between the Village's assets and liabilities - is ne way t measure the Village's financial health, r psitin. * ver time, increased r decreases in the Village's net assets are an indicatr f whether its financial health is imprving r deterirating, respectively. * T assess the verall health f the Village yu need t cnsider additinal nnfinancial factrs such as changes in the Village's prperty tax base and the cnditin f the Village's rads. The gvernment-wide financial statements f the Village are divided int tw categries: * Gvernmental activities - mst f the Village's basic services are included here, such as the plice, streets and drainage, sanitatin and general administratin. Prperty, sales taxes, franchise fees and interest finance mst f these activities. * Business - type activities - The Village charges fees t custmers t help it cver the csts f certain services it prvides. The Village's ne utility systems is included here. Fund Financial Statements The fund financial statements prvide mre detailed infrmatin abut the Village's mst significant funds - nt the Village as a whle. Funds are accunting devices that the Village uses t keep tract f specific surces f funding and spending fr particular purpses. Sme funds are required by State law and by bnd cvenants. The Village has tw kinds f funds: * Gvernmental funds - Mst f the Village's basic services are included in gvernmental funds, which fcus n (1) hw cash and ther financial assets that can readily be cnverted t cash flw in and ut and (2) the balances left at year-end that are available fr spending. Cnsequently, the gvernmental funds statements prvide a detailed shrtterm view that helps yu determine whether there are mre r fewer financial resurces that can be spent in the near future t finance the Village's prgrams.

8 G 2 S «.2 D, en H '3 I 5 - s II > M td en & *T3 -j-j 3 _Q H-, ^ (3 en D T '-C -*-* *-" C T" ID g > "C E "-^ 1 8 &.S >JH * fc^v S.-: "3 * Y c t- «C S CD S? s d (3,3 C^ t*-< en 0) r-> ^ & E 42 jb W J2 3 *-* =f^ (-1 -*- & J2 en CD S <U ** w 2fi fan i C ;7*a CD g «* if, C? 1> (ii \jj «*j t *S H i g H C ^ c en -5 / *~ v >- "X T3 t/1 «2 S >-H S ^ 3 c/) 5 tu c 2 S a -8 & x MANAGEMENT'S DISCUSSIN AND ANA :tary funds - Services fr which the Village charges ci ;tary funds, like the gvernment-wide statements, pr the Village's enterprise funds (ne type f prpriety etail and additinal infrmatin, such as cash flws. ANALYSIS F THE TWN AS A WHLE -S.S -^ t3 T n C :; H H & C C -^ 0 0 ^ 5 M ^ e y * ^3 ^3 ^HH C E ^H X LH & &^M t-l <n (^cs " m <L> C 3 *S 13 TT (N " in uc=3 > ) w i-> C w >1 ^ t P3 Q VI e Village's cmbined net assets increased between f e Table A-1) Table A-1 43 <D H [/) vi 3? CD ^ ^^i r/1 f^1 " 'J r- 1^ en C ^_,".«[/ "K ^. H <u & H g en * en «0> > C -J-! '«y =3 < C Village's Net Assets Gvernmental Activities r^ r- i i ( <N ' r- ^ ^H i/) CM ^ \ ^ "I **\ ' in" ^" r ^ in" (N < m in & (N - < m r- i m ' <s in ^ ^ t~~ t i i <n ' ^ c-t c^ -r^1 -rf «n (S \e *>^\ V* rn ^r ^ i ' r- i in i r 1 *s \ ^ in ^ N " *" vt «n vi & en -i ' (D en W c M. ^ t«(d 1 s 3. 1 a ai -3 " g^l fa 2«1n S c 13.a E H.ts B H S 0, en 3 C (D CC 3 0 U C^ 0 J r-j s * 10 i i i f-^ (^\ ' *" -^j r^i r ^_ t*^ ^^, IT) 2, ^»* S 9 * 1 ^. m r-- ^ (N Tf Ttal liabilities 965 Net assets Invested in capital assets, net f related debt 4,537 Reserved fr debt service Unrestricted (deficit) 49,926 <U C td 2 <D H M f^ PH S ^ S «^ 'ffi ^ w 3 ^* *gj - 13 S ' 4 ~ > C S 5 j«. ID 5 ^s> ^**«^ 00 S > CN LJ C (D L ^^ s -i-h -S < Cj, -J * 5 ^ > <u < j?. 's 2 -S - S - g S H % S ^ 1 -^ 8 u.» <u S r> 8 a^ <U W ^vl CM _. ' u^. M r~? ^,; & C 6*5 CN ci>. _ ^ cu x * &, 1) _i crt ->, T 1 2; S 3 ^ > I/I ^ _. <U 'T3 ^. > S t3 2 ;* K \ ^ ^ ei- P c ^- Ttal net assets $ 54,463 ^ S en 'X - Tfr ^ c3 0 C S in T 13 J3 i- D- V B r, ^ 0 «< H > c M *- r^ IT *i 3 f- > C hi t~j K s 5 a h 0 «^ en 34 t-^l -!~l _&, m.ti ie Village's gvernmental activities increased ased.85 percent t apprximately $456,566. t assets. The Village's ttal revenues fr the year ei i revenues cmes frm charges in services and 24.7C ttal expenses fr year ended June 30, 2005 were $1 : business-type activities and 37.5 percent cmes frm rh f^> 4> ^ M /" h C U en.** ^S. H t * S e -s.s rn jf ij a i~i s Sw w CD K 4* L- S* ^ 33 cj3 2 en.s BH "^ ^ ^ ~* J i. «. Sfc cn c - r C 2 ^ u S 'I 5 -S 2 g

9 H cs > n r- m! CM -" ^_ (N N«^ <n (N m i CN en r< i ' r- r- V V") (N vi > tfi : S 3 H <u «:? c > 4J --H C < fn f en t-- IT) s <c J-H <U 3, d "t en CN S S s ^^ H ^1 -i-j w (7-1 ed CL <n "3 8 cd -4-J s M e w C 'C t Assets Gve rn Acti vi m \ (N TT V) m ' i ^H (N m -_ cd " u ^ PH EA X T3 ' ft) «^H <» 13 «-S -2 M «5 ^s CN ^w J- V < b «j ^rt (D ^3 (D <6 (D J r- (D 00 S Wl u Revenues Prgram revenues Charges fr serv: T3 ra perating grants General revenues C (D X cd E- ^ -4 > ' ti, T3 Ccd w (D C E «J -1-J 'c! C Licenses and per Interest incme ther revenues vi 4> 3 G3 cu a* Ui "3 ** H W3 CJ C G <u &W ^^ c- General gvemmei ^ ^cd w 0 i_ ^- u ^ & ^ Wl 0) c Q> a <u M "3 *j H (D *j (D C.s Increase (decrease] w -4-1 < a " s g < 4-" C f^ ^ $ C 00 s s fi^ «C CQ PJ C3 f s t4-0 g c <U s a & 2 -f w «'.*- ui 2 > 8 <:^-g J -*-> U. a ft «s -C* **- fa M S «Ml «S2S cq

10 Village f Simpsn Simpsn, Luisiana MANAGEMENT'S DISCUSSIN AND ANALYSIS FINANCIAL ANALYSIS F THE TWN'S FUNDS As the Village cmpleted the year, its gvernmental funds reprted a cmbined fund balance f $49,926 an increase f 26 %. CAPITAL ASSETS At the end f June 30, 2005, the Village had invested $386,967 in a brad range f capital assets, including plice equipment, buildings, vehicles and water, gas and sewer systems. (See Table A- 3) This amunt represents a net decrease (including additins and deductins) f apprximately $16,690 r 4.3 percent, ver last year. Table A-3 Twn's Capital Assets Gvernmental Activities Business Activities Land and imprvements $ Buildings and imprvements Plice equipment ffice equipment 4,340 Vehicles 1,600 Water and Sewer Facility and System Less: Accumulated depreciatin ( 4,880) Ttal $ 1,060 $ 5,671 4,340 ( 5.474) $ 4,537 6,483 3, ,161 ( ) $402,597 $ 6,483 3, ,741 ( ) $ 382,430

11 Village f Simpsn Simpsn, Luisiana MANAGEMENT'S DISCUSSIN AND ANALYSIS This year's majr capital assets additins included: * $ 5,671 - Plice equipment -General ECNMIC FACTRS AND NEXT YEAR'S BUDGETS AND RATES The Village's majr surces f revenues fr the general fund are cmprised frm taxes, grants and ccupatinal licenses by 55.49%,10.50%, and 22.25% respectively. The ecnmy is nt expected t generate any significant grwth. All expenditures are expected t be cnsistent with the current years. CNTACTING THE TWN'S FINANCIAL MANAGEMENT This financial reprt is designed t prvide citizens, taxpayers, custmers, investrs and creditrs with a general verview f the twn's finances and t demnstrate the twn's accuntability fr the mney is receives. If yu have questins abut this reprt r need additinal financial infrmatin, cntact Mayr Dnnis Brinkley, Simpsn, LA

12 BASIC FINANCIAL STATEMENTS

13 -4 ' c cd H N 04 \ (N 00 m! S 00 (N m ' < (N hj s(/3 H C/3 (U > <*\t P C H <U &» -P.2 I -4 1 c > c - l< ffl _cd S -2 e-«(n (N S s a (N m CN r fi CN f ^f r- S m m r- r-- m (L (L» 0 53 W 1 C n C cd <u CJ c5 CJ «cd _y i I-H ^ t/3 (U 1=5 G S S ^j <u ^r ^d 8 I i3 "«Hi fi.3 - w w g ffi «H 13 b -r 43 bh -M 'E d^ c y^) S <L> <^ «V r i -H HH W rt (U 3 a cd c X <U cd w «a c^ (D (D 1-- X cd H & I u -b T3 T3 a C dj (U ^ > - u cd w ^ > " S3 «^ 2 13 cj j_* WH - TH ^ W PH &- 4J 1 = 2 g U u Id *-' H c/j < H W 15 c t-l U 4-1 (D - tf T3 C U.«-^

14 CQ -4-1 Cu s u \ '^ n t-- CN ^f u-j \ r-l ^T \ m m ^ ^ \ 1 <* (N tn 1 wt IN <y-t (N Tf 1 00 ' ^r S S rm "3 i &e < 05 C DC P- C i i :-s s > en r- >n r- S cd a E a CJ ca J V3 AH U ' S ^ V u *- H T3 C en U =C V u &i c (X M C 2 C3 '1 u perating jrants and ntributin -a vi u i/r u ai fe u.am <u P P3 J= U «_G ^ ^ c c U 13 s< tn U w u c. "E <L <S1 M U f/i n u D X W C s-gram Activities vernmental Acl General Gvern] And administra' dn t-j '. c u S c J3 ^<8 ed w 1 >> r^ -4-J » "E rt (S >n. '> tal gvernmental acti H 4S rt.-ti. "+3 4S <u 1w c«c ffl Tf <^ CN <N \ m "n (N r- 1-H 4> & U t/3 I-. id -4-» C3 ^ CTs ^f t-- rn TJ-' ^ 09-4 ^q ^D V5 ment Ttal gve _ U T3 C 05 (U c ID e "e u < II 2 2

15 u 0) a ft) 1) CM \ Tf N i " ^CM" c\ "n in CM m ^ CT\ CM a^ C ^ CM a\ < ^r s in ed I I U Q P U (N n fc r 3 «" gp g 3 00 > 0) c CM \ X <N cs m m r- ^ (N V T CM cd CQ ^"3 ^3 T3 Ca T3 3J g y i i l.3 w s cd -2 j- W ed 1) CJ P^ &0!- **^ th-1 Q,-J CQ c ab cd c3 4 > *-* H H

16 Village's F SIMPSN Statement C Recnciliatin f the Gvernmental Funds Balance Sheet T Statement f Net Assets June 30,2005 Ttal fund balance - ttal gvernmental funds $ 49,926 Amunts reprted fr gvernmental activities in the statement f net assets are different because: Capital assets used in gvernmental activities are nt financial resurces and therefre are nt reprted in the gvernmental funds balance sheet Net assets f gvernmental activities The accmpanying ntes are an integral part f this statement 12

17 Village's F SIMPSN Statement D Statement f Revenues. Expenditures, and Changes in Fund Balances Gvernmental Funds Fr the Year Ended June Revenues Taxes: Franchise Sales tax - Sheriff Sales tax - htels Intergvernmental: Federal grants - LCDBG State grants ccupatinal licenses and permits Investment incme Fines and frfeitures Insurance rebates ther revenues Ttal revenues General Fund Capital Prjects Funds 2002 LCDBG Rehab Priect $ 15,043 $ 7,000 8,235 _ 5,730 12, ,080 4,221 S $ Ttal Gvernmental Funds S 15,043 7,000 8,235 5,730 12, ,080 4,221 _ S 54,519 Expenditures General gvernment Public Safety Capital utlay Ttal Expenditures Excess (deficiency) f revenues ver expenditures ther financing surces (uses) Transfer in Transfer ut Ttal ther financing surces (uses) Net change in net assets Net Assets at beginning f year Net Assets at end f year 32,415 5,231 5,671 $43,317 $ (43> 43 (43) 11,245 (43> $ S 32,415 5,231 5,671 $ 43,317 11, f43) $

18 Village's F SIMPSN Statement D Recnciliatin f the Statement f Revenues, Expenditures and Changes in Fund Balance f Gvernmental Funds t the Statement f Activities Fr the Year Ended June 30, 2005 Net Change in fund balances - ttal gvernmental funds $ 11,245 Amunts reprted fr gvernmental activities in the statement f activities are different because: Gvernmental funds reprt capital utlays as expenditures. Hwever, in the gvernment-wide statement f activities and changes in net assets, the cst f thse assets is allcated ver their estimated useful lives as depreciatin expense. This is the amunt f capital assets recrded in the current perid. Depreciatin expense n capital assets is reprted in the gvernment-wide statement f activities and changes in net assets, but they d nt require the use f current financial resurces. Therefre, depreciatin expense is nt reprted as an expenditure in gvernmental funds. ( Change in net assets f gvernmental activities $ The accmpanying ntes are an integral part f this statement 14

19 w 4-1 G D a mt+ m <N " 1> 00 t^ ' m m t-- (N!>_ i-^ f «n" f in m u 0 \ en r- C rn P3 SIMPSN r und fe 0 g,- w 1:0 G CS 1* MH.g MU m ^ f. JH u " -a S g a G S u 3 < ^ <*> -rl * ill ^ & w g 60 fa U T3 «H 3 K ^CQ ^ LL] di i-^h u> <u -S 3 v. G 0 fc > U Pi t*h ^_, V. a. S *«P-( 3 «udget t GAA Actual Am Budeetarv B CQ C/! -4 * C S < T3 0) +J 61 ' >n (N»n ) m (N - CN (N \ 4-" G A~t *J-r e<l> 5;/3 T3 G CQ 13 G *5j 'C c^ m^ in" i-* >n (N in <N (N rn C/1 <D G C <u S& X c u ^3 S W Franchise fe Sales taxes - w -H v] D -^.a i ^> Hed b «-<, «^ J3 S 5 60 ^ b cd J3 "«-4-J Intergvernmen Wl t-j )-H J H cw 0 w <D:upatinal licens jstment incme 2S and frfeiture irance rebates er revenue Wl.S hs fc w G KH -B c» <D <U > u *j H enditures General gvern and adminisi & w -4 > u S G rh 3 j- Capital utlay Public safety CA (L> i_i i Ttal expenc (4-1 ess (deficiency) X PJ w <D fca " g- u t- > id =3 G u > u t-

20 ffl «Tt ^r CN <N r-- 00 P-. ^f> 3^ w 0) «<L> T3 4J c 0 C = c +- <u ^ «- tl 4> Jr?,u rs-. 03 csa >» ^0 1 ^ h r- l/^ ** j \ m" ^_/ \ {*} r< * m (N 00 j_j «^C r/l "^ 3 rt.a c w S g cn g 1 ^ & ^ J - < n -a ^ "«" S-^ g I ilall ^^ """" TT ^ ^1 w t it T3 i SI ' -' fli PL, BJ C C -rt m, **! «^t (N i-h (N I-H r- * m ^t r- m N ^ ' w*» «1 S (S It g *rt 5P & DH X nn S?H ^ c t > - -S f=h PJ <U Efl g t s 1 I ^ " x a\ (N l-h l> m" ^4- ^T <N CN tf*\ VJ te <L> <H C^ T3 s S *j W 1= S ffi _w "S -4-J C/J 15 g 'S3 c *^ -3- w-i r- r- <N t-; rn t r- ^ rt ^t u >- bfl tg ' crt 00 >> t+h S S C u <u C H H < *-' Z

21 Village's F SIMPSN Special Revenue Fund Statement f Revenues, Expenditures, And Changes in Net Assets CDBG Grant - # Year Ended June 30, 2005 Statement F-l Revenues: State Grants Ttal Revenues Expenditures: General Gvernment Special Prgrams: Rehabilitatin lans and grants (husing) Administratin - husing Ttal Expenditures Excess (deficiency) f revenues ver expenditures ther financing surces (uses): Transfer ut 43 Excess (deficiency) f revenues and ther surces ver expenditures and ther uses (43) Net Assets, beginning 43 Net Assets, ending 17

22 Village's F SIMPSN Statement F-2 Cmmunity Develpment Blck Grant - Prgram # Schedule f Prgram Csts Fr the fiscal year ended June 30, 2005 Authrized Csted Expenditures Prir Year Expenditures Remaining T be Expended Administratin - Rehab $ 32,800 $ $ 23,188 $ 9,612 Clearance and demlitin 7,000 7,000 Rehabilitatin lans and grants (husing) Ttals S

23 Village's F SIMPSN Statement f Net Assets Prprietary Fund June 30, 2005 Statement G Business - Type Activities - Enterprise Fund Water ASSETS Current Assets Cash and cash investments $ 48,902 Receivable: Accunts Ttal current assets Nncurrent Assets Restricted cash and cash investments 23,711 Capital assets, net Ttal nncurrent assets Ttal assets S LIABILITIES Current Liabilities Accunts payable $ 1,433 Payrll taxes payable 201 ther accrued liabilities 2,083 Due t ther funds Ttal current liabilities $ Liabilities payable frm restricted assets Accrued interest payable Custmer depsits 840 Revenue bnds payable Ttal liabilities payable frm restricted assets $ 840 Nncurrent Liabilities Revenue bnds payable Ttal Liabilities $ NET ASSETS Invested in capital assets, net f related debt $ 382,430 Unrestricted Ttal net assets S Ttal Liabilities and net assets S

24 VILLAGE'S F SIMPSN, LUISIANA Statement H Statement f Revenues, Expenses and Changes in Net Assets Prprietary Fund Fr the Year Ended June 30, 2005 Business - Type Activities Enterprise Fund Water perating revenues Charges fr services $ 61,563 ther fees 636 Miscellaneus 95 Ttal Revenue $ perating expenses Persnal services 20,580 Grant expense 3,750 Water treatment csts 621 Prfessinal fees 2,802 Aut expense 1,105 Supplies 2,000 Utilities and telephne 7,107 Dues 565 Repairs 3,259 ffice expense 1,337 Insurance 4,265 Miscellaneus 915 Depreciatin Ttal perating expenses $ Incme (lss) frm peratins ( 9.759) Nnperating revenues (expenses) Investment incme 2,097 Interest expense Grant incme Ttal nnperating revenues (expenses) $ Incme (lss) befre cntributins and transfers ( 3.912) Transfers ut Transfers in Net Transfers Change in net assets (3,912) Net Assets at beginning f year Net Assets at end f year $

25 VILLAGE'S F SIMPSN, LUISIANA Statement f Cash Flws Prprietary Fund Fr the Year Ended June 30, 2005 Statement I Cash flws frm perating activities: Cash received frm custmers Cash payments t suppliers Fr gds and services Cash payments t emplyees fr services Net cash prvided by perating activities Business - Type Activities Enterprise Fund Water $ 62,294 (30,827) (20.650) Cash flws frm nncapital financing activities: Transfers frm ther funds Net cash prvided by nncapital financing activities Cash flws frm capital and related financing activities: Acquisitin and cnstructin f capital assets Interest paid n bnds Grant Incme Retirement f bnds Cntributed capital Net cash (used) by capital and related financing activities Cash flw frm investing activities: Interest n cash and investments Net increase (decrease) in cash and cash investments Cash and Cash investments, June 30, 2004 Cash and Cash investments, June 30, 2005 (3,580) ( 260) 3,750 (52,000) (52.090) ( 39,176) (Cntinued) 21

26 VILLAGE'S F SIMPSN, LUISIANA Statement f Cash Flws Prprietary Fund Fr the Year Ended June 30, 2005 Statement I Recnciliatin f (lss) frm peratins t net cash prvided by perating activities: Incme frm peratins Adjustments t recncile incme (lss) frm peratins t net cash prvided by perating activities: Depreciatin Change in assets and liabilities: Decrease in accunts receivable Increase in ther current liabilities Decrease in accunts payable Decrease in custmer depsits Net Cash prvided by perating activities Business - Type Activities Enterprise Fund Water S ( 9,759) 23,746 ( 1,162 ( 4.220) (Cncluded) 22

27 VILLAGE F SIMPSN, LUISIANA Nte t the Financial Statements As f and fr the Year Ended June 30, 2005 INTRDUCTIN The Village's f Simpsn was incrprated under the prvisins f the Lawrasn Act. The Village's perates under a Mayr-Bard f Aldermen frm f gvernment. The accunting and reprting plicies f the Village's f Simpsn cnfrm t generally accepted accunting principles as applicable t gvernments. Such accunting and reprting prcedures als cnfrm t the requirements f Luisiana Revised Statues 24:517 and t the guides set frth in the Luisiana Municipal Audit and Accunting Guide, and t the industry audit guide, Audits f State and Lcal Gvernmental Units. The Village's maintains varius funds that prvide services and benefits t its citizens including repairs and maintenance f apprximately 15 miles f rad and streets, and water, sewer, and garbage cllectin services t apprximately 600 residents. I. SUMMARY F SIGNIFICANT ACCUNT PLICIES A. Gvernment - Wide and Fund Financial Statements The gvernment-wide financial statements (i.e., the statement f net assets and the statement f changes in net assets) reprt infrmatin n the primary gvernment. Fr the mst part, the effect f interfund activity has been remved frm these statements. Gvernmental activities, which nrmally are supprted by taxes and intergvernmental revenues, are reprted separately frm business-type activities, which rely t a significant extent n fees and charges fr supprt. The statement f activities demnstrates the degree t which the direct expenses f a given functin r segment are ffset by prgram revenues. Direct expenses are thse that are clearly identifiable with a specific functin r segment. Prgram revenues include 1) charges t custmers r applicants wh purchase, use r directly benefit frm gds, services, r privileges prvided by a given functin r segment and 2) grants and cntributins that are restricted t meeting the peratinal r capital requirements f a particular functin r segment. Taxes and ther items nt prperly included amng prgram revenues are reprted instead as general revenues. 23

28 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) Separate financial statements are prvided fr gvernmental funds and prprietary funds. Majr individual gvernmental funds and majr individual enterprise funds are reprted as separate clumns in the funds financial statements. B. Measurement Fcus, Basis f Accunting, and Financial Statement Presentatin The gvernment-wide financial statements are reprted using the ecnmic resurces measurement fcus and the accrual basis f accunting, as is the prprietary fund financial statements. Revenues are recrded when earned and expenses are recrded when a liability is incurred, regardless f the timing f related cash flws. Prperty taxes are recgnized as revenues in the year fr which they are levied. Grants and similar items are recgnized as revenue as sn as all eligibility requirements impsed by the prvider have been met. Gvernmental fund financial statements are reprted using the current financial resurces measurement fcus and the mdified accrual basis f accunting. Revenues are recgnized as sn as they are bth measurable and available. Revenues are cnsidered t be available when they are cllectible within the current perid r sn enugh thereafter t pay liabilities f the current perid. Expenditures generally are recrded when a liability is incurred, as under accrual accunting. Hwever, debt service expenditures, as well as expenditures related t cmpensated absences and claims and judgements, are recrded nly when payment is due. Prperty taxes, franchise taxes, licenses and interest assciated with the current fiscal perid are all cnsidered t be susceptible t accrual and s have been recgnized as revenues f the current fiscal perid. All ther revenue items are cnsidered t be measurable and available nly when cash is received by the gvernment. The municipality reprts the fllwing majr gvernmental funds: The General Fund is the municipality's primary perating fund. It accunts fr all financial resurces f the general gvernment, except thse required t be accunted fr in anther fund. C. Special Revenue Fund The Village's entered int a 1998 Luisiana Cmmunity Develpment Blck Grant prgram n September 11, 1998 fr a ttal cntract f $284,800. The funding purpse was t fund husing rehabilitatin fr selected and eligible mderate and lw incme families and is being accunted fr as a special revenue fund. nly administrative csts have been incurred in the last three fiscal years and the prgram was clsed ut in the current fiscal year. 24

29 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) The municipality reprts the fllwing majr prprietary fund: The Prprietary Fund accunts fr peratins (a) where the intent f the gverning bdy is that the csts (expenses, including depreciatin) f prviding gds r services t the general public n a cntinuing basis be financed r recvered primarily thrugh user charges, r (b) where the gverning bdy has decided that peridic determinatin f revenues earned, expense incurred, and/r net incme is apprpriate fr capital maintenance, public plicy, management cntrl, accuntability, r ther purpses. Private-sectr standards f accunting and financial reprting issued prir t December I, 1989, generally are fllwed in bth the gvernment - wide and prprietary fund financial statements t the extent that thse standards d n cnflict with r cntradict guidance f the Gvernmental Accunting Standards Bard. Gvernments als have the ptin f fllwing subsequent private-sectr guidance fr their business-type activities and enterprise funds, subject t this same limitatin. The gvernment has elected nt t fllw subsequent private-sectr guidance. As a general rule the effect f interfund activity has been eliminated frm the gvernment-wide financial statements. Exceptins t this general rule are payments-inlieu f taxes and ther charges between the gvernments enterprise peratins. Eliminatin f these charges wuld distrt the direct csts and prgram revenues reprted fr the varius functins cncerned. Amunts reprted as prgram revenues include 1) charges t custmers r applicants fr gds, services, r privileges prvided, 2) perating grants and cntributins, and 3) capital grants and cntributins. Internally dedicated resurces are reprted as general revenues rather than as prgram revenues. Likewise, general revenues include all taxes. Prprietary funds distinguish perating revenues and expenses frm nnperating items. perating revenues and expenses generally result frm prviding services and prducing and delivering gds in cnnectin with a prprietary funds's principal nging peratins. Charges fr services f prviding water and sewer services t residents cmprise the perating revenue f the Village's 's enterprise fund. perating expenses fr enterprise funds and internal service funds include the csts f sales and services, administrative expense, and depreciatin n capital assets. All revenues and expenses are nt meeting this definitin are reprted as nnperating revenues and expenses. 25

30 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) When bth restricted and unrestricted resurces are available fr use, it is the municipality's plicy t use restricted resurces first, then unrestricted resurces as they are needed. D. Depsits and Investments The municipality's cash and cash equivalents are cnsidered t be cash n hand, demand depsits, and shrt-term investments with riginal maturities f three mnths r less frm the date f acquisitin. State law and the municipality's investment plicy allw the municipality t invest in cllateralized certificated f depsits, gvernment backed securities, cmmercial paper, the state spnsred investment pl, and mutual funds cnsisting slely f gvernment backed securities. E. Receivables and Payables Activity between funds that are representative f lending/brrwing arrangements utstanding at the end f the fiscal year are referred t as either "due t/frm ther funds" (i.e., the current prtin f interfund lans) r "advances t/frm ther funds" (i.e., the nn-current prtin f interfund lans). All ther utstanding balances between funds are reprted as "due t/frm ther funds." Any residual balances utstanding between the gvernmental activities and business-type activities are reprted in the gvernment-wide financial statements as "internal balances." Advances between funds, as reprted in the fund financial statements, are ffset by a fund balance reserve accunt in applicable gvernmental funds t indicated that they are nt available fr apprpriatin and are nt expendable available financial resurces. All trade and prperty tax receivables are shwn net f an allwance fr uncllectible. Water and sewer charges have custmer depsits that have been cllected in advance therefre the majrity f all water and sewer billing is cllected r taken ut f this custmer's depsit, any allwance accunt wuld be immaterial, therefre ne has nt been established. 26

31 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) F. Restricted Assets Certain prceeds f enterprise fund revenue bnds, as well as certain resurces set aside fr their repayment, are classified as restricted assets n the balance sheet because their use is limited by applicable bnd cvenants. Cash cllected frm utility fund custmers as depsits against future utility bills are classified as restricted assets and are held by the Village's in a custdial cash accunt entitled "Custmer Depsits." G. Capital Assets Capital assets, which include prperty, plant, equipment, and infrastructure assets (e.g., rads, bridges, sidewalks, and similar items) are reprted in the applicable gvernmental r business-type activities clumns in the gvernment-wide financial statements. Capital assets are capitalized at histrical cst r estimated cst if histrical cst is nt available. Dnated assets are recrded as capital assets at their estimated fair market value at the date f dnatin. The municipality maintains a threshld level f $1,000 r mre fr capitalizing capital assets. Accrding t GASB 34 the Village's f Simpsn was nt required t retractively reprt infrastructure assets in it's financial statements, therefre, these assets have nt been reprted in the financial statements. The csts f nrmal maintenance and repairs that d nt add t the value f the asset r materially extend assets lives are nt capitalized. 27

32 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) Majr utlays fr capital assets and imprvements are capitalized as prjects are cnstructed. Interest incurred during the cnstructin phase f capital assets f businesstype activities is included as part f the capitalized value f the assets cnstructed. The ttal interest expense included during the current fiscal year was zer. N interest was included as part f the cst f capital assets under cnstructin in cnnectin prjects. All capital assets, ther than land, are depreciated using the straight-line methd ver the fllwing useful lives: Descriptin Estimated Lives Rads, bridges, and infrastructures years Land imprvements years Buildings and building imprvements years Furniture and fixtures 5-15 years Vehicles 5-10 years Equipment 3-15 years H. Cmpensated Absences The Village's requires all emplyees t take vacatins currently. Therefre, any accumulated vacatin pay wuld be less than a year's accrual. Additinally, sick leave is nt accumulated. I. Lng-Term bligatins In the gvernment-wide financial statements, and the prprietary funds types in the fund financial statements, lng-term debt and ther lng-term bligatins are reprted as liabilities in the applicable gvernmental activities, business-type activities, r prprietary fund type statement f net assets. Bnd premiums and discunts, as well as issuance csts, are deferred and amrtized ver the life f the bnds using the effective interest methd. Bnds payable are reprted net f the applicable bnd premium r discunt. Bnd issuance csts are reprted as deferred charges and amrtized ver the term f the related debt. In the fund financial statements, gvernmental fund types recgnize bnd premiums and discunts, as well as bnd issuance csts, during the current perid. The face amunt f the debt issued is reprted as ther financing surces. Premiums received n debt issuances are reprted as ther financing uses. Issuance csts, whether r nt withheld frm the actual debt prceeds received, are reprted as debt service expenditures. 28

33 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) II. Fund Equity In the fund financial statement, gvernmental funds reprt reservatins f fund balances fr amunts that are nt available fr apprpriatin r are legally restricted by utside parties fr use fr a specific purpse. Designatins f fund balances represent tentative management plans that are subject t change. J. Extrardinary and Special Items Extrardinary items are transactins r events that are bth unusual in nature and infrequent in ccurrence. Special items are transactins r event within the cntrl f the municipality, which are either unusual in nature r infrequent in ccurrence. K. Estimates The preparatin f financial statements in cnfrmity with accunting principles generally accepted in the United States f America require management t make estimates and assumptins that affect that affect the reprted amunts f assets and liabilities and disclsure f cntingent assets and liabilities at the date f the financial statements and the reprted amunts f revenues, expenditures, and expenses during the reprting perid. Actual results culd differ frm thse estimates. 2. STEWARDSHIP, CMPLIANCE, AND ACCUNTABILITY Budget Infrmatin The Village's uses the fllwing budget practices: 1. The Village's Clerk and Mayr prepare a prpsed budget and submit same t the Bard f Aldermen n later than fifteen days prir t the beginning f each fiscal year. 2. A summary f the prpsed budget is published and the public ntified that the prpsed budget is available fr public inspectin. At the same time, a public hearing is called. 3. A public hearing is held n the prpsed budget at least ten days after the publicatin f the call fr the hearing. 29

34 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) 4. After the hlding f the public hearing and cmpletin f all actin necessary t finalize an implement the budget, the budget is adpted thrugh passage f an rdinance prir t the cmmencement f the fiscal year fr which the budget is being adpted. 5. Budgetary amendments invlving the transfer f funds frm ne department, prgram r functin t anther r invlving increases in expenditures resulting frm revenues exceeding amunts estimated require the apprval f the Bard f Aldermen. These amended amunts are shwn in the financial statements. 6. All budgetary apprpriatins lapse at the end f each fiscal year. 7. The budgets fr the General Fund and Special Revenue Fund are adpted n a basis cnsistent with generally accepted accunting principles (GAAP). Budgeted amunts are as riginally adpted, r as amended frm time t time by the Bard f Aldermen. 3. CASH AND CASH EQUIVALENTS At June 30, 2005, the Village's has cash and cash equivalents (bk balances) ttaling $ 117,105 as fllws: Demand Depsits $ 82,579 Mney market investment accunts Ttal $ These depsits are stated at cst, which apprximates market. Under state law, these depsits (r the resulting bank balances) must be secured by federal depsit insurance r the pledge f securities wned by the fiscal agent bank. The market value f the pledged securities plus the federal depsit insurance must at all times equal the amunt n depsit with the fiscal agent. These securities are held in the name f the pledging fiscal agent bank in a hlding r custdial bank that is mutually acceptable t bth parties. At June 30, 2005, the municipality has $ 112,778 in depsits (cllected bank balances). These depsits are ttally secured frm risk by $112,778 f federal depsit insurance 30

35 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) 4. RECEIVABLES The receivables f $ 12,479 at June 30, 2005, are as fllws: Class f receivable Taxes: Franchise Intergvernmental Accunts Ttal General Fund $ $ 2,619 3, Prprietary Fund $ S 6,080 Ttal $ 2,619 3, $ 12, INTERFUND RECEIVABLES/PAYABLES There were n interfund receivables r interfund payables at June 30, 2005, fr any f the Village's 's Funds. 31

36 6. CAPITAL ASSETS VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statements (Cntinued) Capital assets and depreciatin activity as f and fr the year ended June 30, 2005, fr the primary gvernment is as fllws: Beginning Ending Balance Increase Decrease Balance Gvernmental Activities: Capital assets being depreciated Vehicles $ 1,600 $ $ 1,600 $ Plice equipment 5,671 5,671 ffice Equipment _ 4,340 Ttal capital assets being depreciated $ $ $ S Less accumulated depreciatin fr: Vehicles Plice equipment ffice Equipment Ttal accumulated depreciatin (640) (4.240) (4.880) 640 ( 1,134) (100) ( 1.234) 640 (1,134) ( 4.340) (5.474) Ttal capital assets being depreciated, net $ $ $ 960 $ 4,537 Business-type activities: Capital assets, nt being depreciated Land Ttal capital assets, nt be depreciated Capital assets being depreciated Plant and Equipment Well and Equipment Line extensin ffice Equipment Auts and trucks Ttal capital assets being depreciated Less accumulated depreciatin fr: All depreciable assets Ttal business-type assets being depreciated, n< Beginning Balance $ 612,432 87,453 8,276 6,483 3, $( ) 3t$ 402,597 Increase ( (fi Decrease 3, $ (23.747) $ $ (20,167) $ Ending Balance 612,432 91,033 8,276 6, $( ) $ 382,430 32

37 VILLAGE F SIMPSN, LUISIANA Ntes t the Financial Statement (Cntinued) Depreciatin expense f $24,981 fr the year ended June 30, 2005, was charged t the fllwing gvernmental functins: General administratin $ 1,234 Business-type activities 23,747 Ttal S LNG-TERM BLIGATINS The fllwing is a summary f the current (due in ne year r less) and the lng-term (due in mre than ne year) prtins f lng-term bligatins as f June 30, 2005: Bnded Debt Current Prtin $ Lng-term prtin _ Ttal $ The fllwing activity ccurred during the fiscal year ended June 30, 2005: Bnds Payable - 6/30/04 $ 52,000 Bnds Retired (52.000^ Bnds Payable -6/30/05 $ Bnds payable at June 30, 2005 are cmprised f the fllwing individual issues: Revenue Bnds: $ 140,000 f Waterwrks Revenue Bnds dated May 26, 1971; due in annual installments f $ 2,000 - $ 9,000 thrugh 2015; interest at 5% During the fiscal year ended June 30, 2005, the Village's utilized its restricted sinking funds and ther perating funds t pay ff its nly utstanding issue f revenue bnds. 33

38 REQUIRED SUPPLEMENTAL INFRMATIN 34

39 VILLAGE F SIMPSN, LUISIANA Schedule f Per Diem Paid t Bard Members Year Ended June 30, 2005 Schedule 1 Bard Member Ttal Paid Dnnis Brinkley, Mayr $ 1,200 Rger Bennett, Alderman 600 W.D. Reeder, Alderman 600 Dnald wens, Alderman 300 Gene Stephens, Alderman 300 S

40 VILLAGE F SIMPSN, LUISIANA Schedule f Prir Year Audit Findings Year Ended June 30, 2005 Schedule 2 Findings- Financial Statement Audit There were n prir year audit findings reprted as f June 30,

41 VILLAGE F SIMPSN, LUISIANA Schedule f the Crrective Actin Plan Fr the Current Year Audit Findings Year Ended June 30, 2005 Schedule 3 There were n current year Findings. Current Year Audit Findings 37

42 ELLITT & ASSCIATES, INC. A Prfessinal Accunting Crpratin P.. Bx 1287 Leesville, Luisiana (337) W. Micheal Ellitt, CPA (337) Fax REPRT N CMPLIANCE AND N INTERNAL CNTRL VER FINANCIAL REPRTING BASED N AN AUDIT F FINANCIAL STATEMENTS PERFRMED IN ACCRDANCE WITH GVERNMENT AUDITING STANDARDS The Hnrable Dnnis Brinkley, Mayr And the Members f the Bard f Aldermen Village's f Simpsn, Luisiana I have audited the financial statements f the gvernmental activities, the business-type activities, and each majr fund f the Village's f Simpsn, Luisiana, as f and fr the year ended June 30, 2005, which cllectively cmprise the Village's f Simpsn, Luisiana's basic financial statements and have issued my reprt theren date Nvember 5, I cnducted my audit in accrdance with auditing standards generally accepted in the United States f America and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Cmpliance As part f btaining reasnable assurance abut whether the Village's f Simpsn, Luisiana's financial statements are free f material misstatement, I perfrmed tests f its cmpliance with certain prvisins f laws, regulatins, cntracts, and grants, nncmpliance with which culd have a direct and material effect n the determinatin f financial statement amunts. Hwever, prviding an pinin n cmpliance with thse prvisins was nt an bjective f my audit and, accrdingly, I d nt express such an pinin. The results f my tests disclsed n instances f nncmpliance that are required t be reprted under Gvernment Auditing Standards. 38

43 The Hnrable Dnnis Brinkley, Mayr Village's f Simpsn, Luisiana Page 2 Internal Cntrl ver Financial Reprting In planning and perfrming my audit, I cnsidered the Village's f Simpsn, Luisiana's internal cntrl ver financial reprting in rder t determine my auditing prcedures fr the purpse f expressing my pinin n the financial statements and nt t prvide assurance n the internal cntrl ver financial reprting. My cnsideratin f the internal cntrl ver financial reprting wuld nt necessarily disclse all matters in the internal cntrl ver financial reprting that might be material weaknesses. A material weakness is a cnditin in which the design r peratin f ne r mre f the internal cntrl cmpnents des nt reduce t a relatively lw level the risk that misstatements in amunts that wuld be material in relatin t the financial statements being audited may ccur and nt be detected within a timely perid by emplyees in the nrmal curse f perfrming their assigned functins. I nted n matters invlving the internal cntrl ver financial reprting and its peratin that I cnsider t be material weaknesses. This reprt is intended slely fr the infrmatin and use f management, thers within the rganizatin, the Bard f Aldermen, and the Legislative Auditr and is nt intended t be and shuld nt be used by anyne ther than these specified parties, althugh under Luisiana Revised Statue 24:5 13, this reprt is distributed by the Legislative Auditr as a public dcument. Leesville, Luisiana Nvembers,