RED RIVER PARISH SCHOOL BOARD COUSHATTA, LOUISIANA FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2007

Transcription

1 COSHATTA, LOISIANA FINANCIAL STATEMENTS FOR THE YEAR ENDED JNE 3, 27 nder prvisins f state law, this reprt ia a public dcument. Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public 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 CQSHATTA. LOISIANA TABLE OF CONTENTS JNE 3.27 EHIBIT SCHEDLE PAGE Affidavit Independent Auditrs' Reprt Management's Discussin and Analysis - 3 Statement f Net Assets A - 8 Statement f Activities B - 9 Balance Sheet - Gvernmental Funds C - 1 Recnciliatin f the Gvernmental Funds Balance Sheet t the Statement f Net Assets D - 11 Statement f Revenues, Expenditures, and Changes in Fund Balances - Gvernmental Funds E - 12 Recnciliatin f the Statement f Revenues, Expenditures, and Changes in Fund Balances f Gvernmental Funds t the Statement f Activities F - 13 Statement f Fiduciary Assets and Liabilities - Fiduciary Funds G - 14 Ntes t the Financial Statements Required Supplementary Infrmatin Statement f Revenues, Expenditures, and Changes in Fund Balances f Gvernmental Funds - Budget (GAAP Basis) and Actual - General Fund Other Supplementary Infrmatin General Schedule f Cmpensatin Paid Bard Members Schedule f Findings and Questined Csts Schedule f Expenditures f Federal Awards Reprt n Internal Cntrl Over Financial Reprting and n Cmpliance and Other Matters n an Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards Reprt n Cmpliance with Requirements Applicable t Each Majr Prgram and n Internal Cntrl Over Cmpliance in Accrdance with OMB Circular A

3 TABLE OF CONTENTS (CONTINED) JNE EHIBIT SCHEDLE PAGE Summary Schedule f Prir Audit Findings Crrective Actin Plan fr Current Year Audit Findings SCHEDLES REQIRED BY STATE LAW (R.S. 24:514 Perfrmance and Statistical Data): General Fund Instructinal and Supprt Expenditures and Certain Lcal Revenue Surces Educatin Levels f Public Schl Staff Number and Type f Public Schls Experience f Public Principals, Assistant Principals, and Full-time Classrm Teachers Public Schl Staff Data: Average Salaries Class Size Characteristics Luisiana Educatinal Assessment Prgram (LEAP) Graduatin Exit Examinatin (GEE) The IOWA Tests Reprt n Applying Agreed-pn Prcedures t the Management f Red River Parish Schl Bard

4 CQSHATTA. LOISIANA FINANCIAL STATEMENTS FOR THE YEAR ENDED JNE Legislative Auditr P. O. Bx Batn Ruge, LA AFFIDAVIT Persnally came and appeared befre the undersigned authrity, Kay Easley, Superintendent f the Red River Parish Schl Bard, wh duly swrn, depses and says, that the financial statements herewith given presents fairly the financial psitin f the Red River Parish Schl Bard, at June 3, 27 and the results f peratins fr the year then ended in accrdance with generally accepted accunting principles as prescribed by the Gvernmental Accunting Standards Bard. Swrn t and subscribed befre me, this 9" 1 day f Nvember. 27. NOTARY PBl

5 HINES, JACKSON & HINES, L.L.C. CERTIFIED PBLIC ACCONTANTS FRANK S. HINES, CPA P.O. BO EAST FIFTH STREET A. NEILL JACKSON, JR., CPA LEWIS C. HINES, CPA NATCHITOCHES, LA E. MERLIN SQYRES, CPA JAY H. SHEFFIELD, CPA Telephne (318) FA (318) Bard Members Red River Parish Schl Bard Cushatta, Luisiana INDEPENDENT ADITORS' REPORT We have audited the accmpanying financial statements f the gvernmental activities, each majr fund, and the aggregate remaining fund infrmatin f the Red River Parish Schl Bard, Cushatta, Luisiana, as f and fr the year ended June 3, 27, which cllectively cmprise the Red River Parish Schl Bard's basic financial statements as listed in the table f cntents. These financial statements are the respnsibility f the Red River Parish Schls Bard's management. Our respnsibility is t express pinins n these financial statements based n ur audit. We cnducted ur audit in accrdance with auditing standards generally accepted in the nited States f America and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the nited States. Thse standards require that we 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. We believe that ur audit prvides a reasnable basis fr ur pinins. In ur pinin, the financial statements referred t abve present fairly, in all material respects, the respective financial psitin f the gvernmental activities, each majr fund and the aggregate remaining fund infrmatin f the Red River Parish Schl Bard, Cushatta, Luisiana, as f June 3,27, and the respective changes in financial psitin and cash flws, where applicable, theref fr the year then ended in cnfrmity with accunting principles generally accepted in the nited States f America. In accrdance with Gvernment Auditing Standards, we have als issued a reprt dated Nvember 9,27 n ur cnsideratin f the Red River Parish Schl Bard's internal cntrl ver financial reprting and ur tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grants. The purpse f that reprt is t describe the scpe f ur testing f internal cntrl ver financial reprting and cmpliance and the results f that testing, and nt t prvide an pinin n the internal cntrl ver financial reprting r n cmpliance. That reprt is an integral part f an audit perfrmed in accrdance with Gvernment Auditing Standards and shuld be cnsidered in assessing the results f ur audit. The Management's Discussin and Analysis and the budgetary infrmatin n pages 3 thrugh 7 and 28, respectively, are nt a required part f the basic financial statements but are supplementary infrmatin required by the Gvernmental Accunting Standards Bard. We have applied certain limited prcedures, which cnsisted principally f inquiries f management regarding the methds f measurement and presentatin f the supplementary infrmatin. Hwever, we did nt audit the infrmatin and express n pinin n it. Our audit was cnducted fr the purpse f frming pinins n the financial statements that cllectively cmprise the Red River Parish Schl Bard's basic financial statements. The accmpanying supplementary infrmatin schedules listed in the table f cntents are presented fr purpses f additinal analysis and are nt a required part f the basic financial statements. Such infrmatin has been subjected t the auditing prcedures applied in the audit f the basic financial statements and, in ur pinin, is fairly stated, in all material respects, in relatin t the basic financial statements taken as a whle. The financial infrmatin fr the year ended June 3,26, which is included fr cmparative purpses was taken frm the financial reprt fr that year in which we expressed an unqualified pinin dated Octber 6,26, n the basic financial statements f the Red River Parish Schl Bard. Hines, Jacksn & Hines Natchitches, Luisiana Nvember 9, 27 -MEMBERS- American Institute f Certified Public Accuntants Sciety f Luisiana Certified Public Accuntants

6 MANAGEMENT'S DISCSSION AND ANALYSIS JNE The Management's Discussin and Analysis f the Red River Parish Schl Bard's financial perfrmance presents a narrative verview and analysis f Red River Parish Schl Bard's financial activities fr the year ended June 3,27. This dcument fcuses n the current year's activities, resulting changes, and currently knwn facts. Please read this dcument in cnjunctin with the Red River Parish Schl Bard's financial statements, which begin n page 8. FINANCIAL HIGHLIGHTS 1) The Red River Parish Schl Bard had cash and investments f $9,732,24 at June 3,27 which represents an increase f $1,474,587 frm prir year end. 2) The Red River Parish Schl Bard had receivables f $79,41 at June 3,27 which represents a decrease f $125,622 frm prir year end. 3) The Red River Parish Schl Bard had accunts payable and accruals f $1,763,963 at June 3,27 which represents an increase f $324,692 frm prir year end. 4) The Red River Parish Schl Bard had ttal revenues f $17,29,237 fr the year ended June 3,27 which represents an increase f $ 1,66,98 frm prir year. 5) The Red River Parish Schl Bard had taxes f $3,956,897 fr the year ended June 3,27 which represents an increase f $513,72 frm prir year. 6) The Red River Parish Schl Bard had minimum fundatin prgram revenues f $9,222,77 fr the year ended June 3, 27 which represents an increase f $365,9 frm prir year. 7) The Red River Parish Schl Bard had ther state surce revenues f $887,992 fr the year ended June 3, 27 which represents an increase f $193,633 frm prir year. 8) The Red River Parish Schl Bard had federal surce revenues f $2,624,824 fr the year ended June 3,27 which represents a decrease f $219,883 frm prir year. 9) The Red River Parish Schl Bard had instructinal services expenses f $8,56,553 fr the year ended June 3, 27 which represents an increase f $499,445 frm prir year. 1) The Red River Parish Schl Bard had supprt services expenses f $5,53,686 fr the year ended June 3, 27 which represents an increase f $653,64 frm prir year. 11) The Red River Parish Schl Bard had capital asset purchases f $371,567 fr the year ended June 3,27 which represents an increase f $ 191,619 frm prir year. 12} The Red River Parish Schl Bard had debt services payments f $927,67 fr the year ended June 3,27 which represents an increase f $7,64 frm prir year.

7 MANAGEMENT'S DISCSSION AND ANALYSIS ('CONTINED') JNE OVERVIEW OF THE FINANCIAL STATEMENTS The fllwing graphic illustrates the minimum requirements fr the Red River Parish Schl Bard as established by Gvernmental Accunting Standards Bard Statement 34, Basic Financial Statements-and Management's Discussin and Analvsis-fr State and Lcal Gvernments. Management Discussin and Analysis Basic Financial Statements Required Supplementary Infrmatin (Other than MD&A) These financial statements cnsist f three sectins - Management's Discussin and Analysis (this sectin), the baste financial statements (including the ntes t the financial statements), and required supplementary infrmatin. Basic Financial Statements This annual reprt cnsist f a series f financial statements. The Statement f Net Assets and the Statement f Activities (n pages 8 and 9) prvide infrmatin abut the activities f the Red River Parish Schl Bard as a whle and present a lnger-term view f the Schl Bard's finances. These statements include all assets and liabilities using the accrual basis f accunting, which is similar t the accunting used by mst private-sectr cmpanies. All f the current year's revenues and expenses are taken int accunt regardless f when cash is received r paid. The Statement f Net Assets and the Statement f Activities reprt the Schl Bard's net assets and changes in them. Yu can think f the Schl Bard's net assets, the difference between assets and liabilities, as ne way t measure the Schl Bard's financial health, r financial psitin. Overtime, increases r decreases in the Schl Bard's net assets are ne indicatr f whether its financial health is imprving r deterirating. Fund financial statements start n page 1. All f the Schl Bard's basic services are reprted in gvernmental funds, which fcus n hw mney flws int and ut f thse funds and the balances left at year end that are available fr spending. These funds are reprted using an accunting methd called mdified accrual accunting, which measures cash and all ther financial assets that can readily be cnverted t cash. The gvernmental fund statements prvide a detailed shrt term view f the Schl Bard's general gvernment peratins and the basic services it prvides. Gvernmental fund infrmatin helps yu determine whether there are mre r fewer financial resurces that can be spent in the near future t finance the Schl Bard's activities as well as what remains fr future spending.

8 MANAGEMENT'S DISCSSION AND ANALYSIS (CONTINED) JNE FINANCIAL ANALYSIS OF THE ENTITY Statement f Net Assets As f Year End 27 2Q6 Current and ther assets $ 1,457,11 $ 9,16,736 Capital assets, net Ttal Assets $ $ Accunts payable and accruals $ 1,885,145 $ 1,568,72 Cmpensated absences payable 688,19 548,844 General bligatin bnds Ttal Liabilities 1,723,335 1,86,916 Net assets Investment in capital assets, net f related debt 4,98,298 3,848,636 Restricted 2,867,49 2,383,822 nrestricted Ttal Net Assets Ttal Liabilities and Net Assets $ $ 21, Net assets f the Red River Parish Schl Bard's increased by $1,143,68 r 1.55% frm the previus fiscal year. The increase is the result f perating and nnperating revenues exceeding expenses during the fiscal year ended 27 (See table belw). Statement f Activities Fr the Year Ended General gvernment Expenses $ (16,146,629) $ (14,962,522) Prgram revenues Charges fr services 77,656 71,335 Operating and capital grants and cntributins 3.462, Subttal (12,66,33) (11,399,65) Taxes 3,956,897 3,443,825 Minimum fundatin revenues 9,222,77 8,856,87 Other Change in net assets $ $ The Red River Parish Schl Bard's ttal revenues increased by $ 1,66,98 r 6.58% frm the previus year. The ttal cst f all prgrams and services increased by $1,184,17 r 7.91% frm the previus year.

9 MANAGEMENT'S DISCSSION AND ANALYSIS (CONTINED) JNE CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end f 27, the Red River Parish Schl Bard had $ 12,248,298, net f depreciatin, invested in a brad range f capital assets (See table belw). This amunt represents a net decrease (including additins and deductins) f $29,338 r 2.32% frm the previus year. Capital Assets at Year End (Net f Depreciatin) Land $ 15,657 $ 15,657 Buildings and building imprvements 11,25,982 11,559,36 Autmbiles and equipment This year's majr additins included: Ttal $ $ Autmbiles and equipment $ 371,567 This years's majr retirements included: Autmbiles and equipment $ 261,366 Debt The Red River Parish Schl Bard had $8,838,19 in utstanding debt at year end cmpared t $9,238,844 at the previus year end, a decrease f $4,654 r 4.34% as shwn in the table belw. Outstanding Debt at Year End Cmpensated absences payable $ 688,19 $ 548,844 General bligatin bnds New debt during the year included: Nne. Ttals $ $

10 MANAGEMENT'S DISCSSION AND ANALYSIS (CONTINED) JNE VARIATIONS BETWEEN ORIGINAL AND FINAL BDGETS Actual revenues were $248,967 mre than budgeted amunts due t ther state surces being mre than expected. Actual expenditures were $132,987 less than budgeted amunts due t student transprtatin services being less than expected. ECONOMIC FACTORS AND NET YEAR'S BDGET The Red River Parish Schl Bard's elected and appinted fficials cnsidered the fllwing factrs and indicatrs when setting next year's budget, rates, and fees. These factrs and indicatrs include: 1) Minimum fundatin prgram revenues 2) Taxes (ad valrem and sales) 3) Intergvernmental revenues (federal and state grants) The Red River Parish Schl Bard des nt expect any significant changes in next year's results as cmpared t the current year. CONTACTING THE RED RIVER PARISH SCHOOL BOARD'S MANAGEMENT This financial reprt is designed t prvide ur citizens, taxpayers, custmers, investrs and creditrs with a general verview f the Red River Parish Schl Bard's finances and t shw the Red River Parish Schl Bard's accuntability fr the mney it receives. If yu have questins abut this reprt r need additinal financial infrmatin, cntact Kay Easley, Superintendent, Pst Office Bx 1369, Cushatta, Luisiana 7119.

11 STATEMENT OF NET ASSETS JNE AND 26 EHIBIT A Assets Current Assets Cash and cash equivalents Investments Accunts receivable Inventries Ttal Current Assets $ 8,58,271 $ 1,223,753 79, ,457,11 7,9,642 1,166, , ,16,736 Nncurrent Assets Capital assets, net Ttal Assets $ $ Liabilities and Net Assets Liabilities Current Liabilities Current prtin f general bligatin bnds Accunts payable and accruals Interest payable Ttal Current Liabilities Nncurrent Liabilities Cmpensated absences payable General bligatin bnds, net f current prtin Ttal Liabilities $ 565, $ 1,763, ,45, , ,723,335 54, 1,439, ,18,72 548, ,86,916 Net Assets Investment in capital assets, net f related debt Restricted Salaries Retirement f lng-term debt Cnstructin and renvatins f capital assets nrestricted 4,98,298 3,848,636 1,239,88 949,67 1,471,958 1,289, , , Ttal Net Assets Ttal Liabilities and Net Assets $ $ The accmpanying ntes are an integral part f this statement.

12 r- O\ >n fi ' r-i Oi ' ' TD «S ra *^ -C w O 3 PS 15 - ^. "c3 " a a I l-s'msis! 51 ^'2 "-S» _, S uc &8.-g 111 Sill Cc w ^ 3 w M O w CD - & 3 _ rvices transprtatin se n ervices a> i.vices "ea «B -a R in lng-term debt V cfltin (unallcated;?5 u _ 1. V) w tal General Activ h - a> u ied fr general purpse; ied fr debt service fr general purpses _u > T3 _w 5 ng n prgram (MFP) revc J -I il Revenues 2 u c General Revenu Prperty taxes, Prperty taxes, Sales taxes, lev State revenue s Minimum fun Interest incme Miscellaneus Ttal Ge et Assets Z.g V A 6 S -2

13 BALANCE SHEET GOVERNMENTAL FNDS JNE AND 26 EHIBIT C Assets Cash and cash equivalents Investments Receivable Interfund receivable Inventries Ttal Assets General Fund 5,896,24 $ 314,689 12, ,589 Debt Service _ Fund 691, ,415 24, Other Gvernmental Funds Ttal Ttal 1,92,48 153, , ,58,271 1,223,753 79,41 557, ,9,642 1,166, , , S $ $ S $ Liabilities and Fund Balances Liabilities Accunts payable and accruals $ 1,744,636 $ Interfund payables _ 159 $ 19,168 $ 1,763,963 $ 1,439, Ttal Liabilities 1,744, ,757 2,321,552 2,73,886 Fund Balances Reserved Salaries Retirement f lng-term debt Cnstructin and renvatins f capital assets nreserved ,471,958 1,239,88 156, ,239,88 1,471, , ,67 1,289, , Ttal Net Assets , , Ttal Liabilities and Fund Balances $ $ $ S $ The accmpanying ntes are an integral part f this statements. 1

14 RECONCILIATION OF THE GOVERNMENTAL FNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JNE EHIBIT D Ttal Fund Balances fr Gvernmental Funds (Exhibit C) $ 8,693,138 Ttal Net Assets reprted fr gvernmental activities in the statement f net assets is different because: Capital assets used in gvernmental activities are nt financial resurces and therefre are nt reprted in the funds. Thse assets cnsist f: Land $ 15,657 Buildings and building imprvements, net f $2,535,52 in accumulated depreciatin 11,25,982 Autmbiles and equipment, net f $1,189,658 in accumulated depreciatin Ttal Capital Assets 12,248,298 Eliminatin f interfiind assets and liabilities Interfund receivables (557,589) Interfund payables Net Interfund Assets and Liabilities Lng-term liabilities are nt due and payable in the current perid and therefre are nt reprted in the fund liabilities. Interest n lng-term debt is nt accrued in gvernment funds, but rather is recgnized as an expenditure when due. Lng-term liabilities and accrued interest n lngterm debts are reprted in the statement f net assets. Lng-term liabilities and accrued interest n lng-term debt at year end cnsist f: Interest payable 121,182 Cmpensated absences payable 688,19 General bligatin bnds S Ttal Lng-term Liabilities ( ) Ttal Net Assets f Gvernmental Activities (Exhibit A) S The accmpanying ntes are an integral part f this statements. 11

15 STATEMENT OF REVENES. EPENDITRES. AND CHANGES IN FND BALANCES GOVERNMENTAL FNDS FOR THE YEARS ENDED JNE AND 26 EHIBIT E Revenues Lcal Surces Taxes: Ad valrem Taxes: Sales and use Interest earnings Charges fr services Other State Surces Minimum fundatin prgram (MFP) Other Federal Surces Ttal Revenues General Fund $ 529,67 $ 92, , ,216 9,78,77 223,51 ics 11,24,179 Debt Service Fund 27 1,53,358 $ 56,91 1,11,268 Other Gvernmental Funds 533,51 S 92, ,98 77, , 664, ,975,79 Ttal 2,116,475 $ 1,84, ,882 77, ,216 9,222,77 887, ,824 17,29, Ttal 2,64,344 1,379, ,647 71,335 79,514 8,856,87 694,359 2, ,223,257 Expenditures Current Instructin Regular prgrams Special prgrams Adult and cntinui Supprt Services Student services iducatin 4,63,971 1,17, ,467 59,628 Instructinal staff supprtprt 437,132 General administratini 482,79 Schl administratin 734,116 Business services 219,75 Plant services 947,99 Student transprtatin Central services Fd services Capital utlay Debt Service Principal retirement services 937,931 3,83 85, ,16 Interest and bank charges Res itures , ,67 72,447 1,51, 164,93 197, ,95 18,24 39,54 26, , ,579 95, , ,36,418 2,68,392 56,397 77, ,227 5,733 1,43, ,358 1,194,839 1,5,51 3,83 1,36, ,567 54, , ,918,962 2,527,25 566,73 58,98 635, , , ,221 1,168,198 98,86 14,189 1,13, ,948 51, Excess/(Deficiency) f Revenues Over Expenditures 538,94] 182,661 34,71 1,25,673 1,233,131 Other Financing Surces/(ses)!/(ses) Operating transfers in 3,758 Operating transfers ut Ttal Other F inane ing Surces/fses) es) (3.758) (3.758) 3,758 (3.758) 14,715 (14.715) Net Changes In Fund Balances 542, ,661 3,313 1,25,673 1,233,131 Fund Balances, Beginning ig f year 4,583, Fund Balances, End f year $ $ S $ $ The accmpanying ntes are an integral part f this statement. 12

16 EHIBIT F RED RIVER PARISH SCHOOL BOARD RECONCILIATION OF THE STATEMENT OF REVENES. EPENDITRES. AND CHANGES IN FND BALANCES OF GOVERNMENTAL FNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JNE Net Change in Fund Balances-Ttal Gvernmental Funds (Exhibit E) $ 1,25,673 The change in Net Assets reprted fr gvernmental activities in the statement f activities is different because: Gvernmental funds reprt capital utlays as expenditures. Hwever, in the statement f activities the cst f thse assets is allcated ver their estimated useful lives and reprted as depreciatin expense. This is the amunt by which depreciatin ($661,95) exceeds capital utlays ($371,567) in the current perid. Sme expense reprted in the statement f activities d nt require the use f current financial resurces and therefre are nt reprted as expenditures in gvernmental funds. Repayment f bnd principal is an expenditure in the gvernmental funds, but the repayment reduces lng-term liabilities in the statement f net assets. Change in Net Assets f Gvernmental Activities (Exhibit B) (29,338) (131,727) The accmpanying ntes are an integral part f this statement. 13

17 STATEMENT OF FIDCIARY ASSETS AND LIABILITIES FIDCIARY FNDS JNE 3.27 AND 26 EHIBIT G Assets Cash $ $ Ttal Assets S $ Liabilities Due t ther gvernments $ $ Ttal Liabilities $ $ The accmpanying ntes are an integral part f this statement. 14

18 NOTES TO THE FINANCIAL STATEMENTS JNE INTRODCTION The Red River Parish Schl Bard was created by Luisiana Revised Statue (LSA R.S.) 17:51 t prvide public educatin fr the children within Red River Parish. The Schl Bard is authrized by LSA-R.S. 17:81 t establish plicies and regulatins fr its wn gvernment cnsistent with the laws f the State f Luisiana and the regulatins f the Luisiana Bard f Elementary and Secndary Educatin. The Schl Bard is cmprised f seven members wh are elected frm their respective districts fr terms f fur years. The Schl Bard perates five schls within the parish with a ttal enrllment f apprximately 1,441 pupils. In cnjunctin with the regular educatinal prgrams, sme f these schls ffer special educatins and/r adult educatin prgrams. In additin, the Schl Bard prvides transprtatin and schl fd services fr the students. NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES A. Basis f Accunting The accmpanying financial statements f the Red River Parish Schl Bard have been prepared in cnfrmity with generally accepted accunting principles (GAAP) as applied t gvernmental units. The Gvernmental Accunting Standards Bard (GASB) is the accepted standard-setting bdy fr establishing gvernmental accunting and financial reprting principles. This financial reprt has been prepared in cnfrmity with GASB Statement N. 34, Basic Financial Statements - and Management's Discussin and Analysis - fr State and Lcal Gvernments, issued in June B. Reprting Entity GASB Statement 14 establishes criteria fr determining the gvernmental reprting entity and cmpnent units that shuld be included within the reprting entity. nder prvisins f this Statement, the Schl Bard is cnsidered a primary gvernment, since it is a special purpse gvernment that has a separately elected gverning bdy, is legally separate, and is fiscally independent f ther state r lcal gvernments. As used in GASB Statement N. 14, fiscally independent means that the Schl Bard may, withut the apprval r cnsent f anther gvernmental entity, determine r mdify its wn budget, levy its wn taxes r set rates r charges, and issue bnded debt. The Schl Bard als has n cmpnent units, defined by GASB Statement N. 14 as ther legally separate rganizatins fr which the elected schl bard members are financially accuntable. There are n ther primary gvernments with which the Schl Bard has a significant relatinship. C. Funds The Schl Bard uses funds t maintain its financial recrds during the year. Fund accunting is designed t demnstrate legal cmpliance and t aid management by segregating transactins related t certain Schl Bard functins and activities. A fund is defined as a separate fiscal and accunting entity with a self-balancing set f accunts. Funds f the Schl Bard are classified int tw categries: gvernmental and fiduciary, as fllws: 15

19 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES (CONTINED) C. Funds (Cntinued) Gvernmental Funds Gvernmental funds accunt fr all r mst f the Schl Bard's general activities. These funds fcus n the surces, uses, and balances f current financial resurces. Expendable assets are assigned t the varius gvernmental funds accrding t the purpses fr which they may be used. Current liabilities are assigned t the fund frm which they will be paid. The difference between a gvernmental fund's assets and liabilities is reprted as fund balance. In general, fund balance represents the accumulated expendable resurces which may be used t finance future perid prgrams r peratins f the Schl Bard. The fllwing are the Schl Bard's primary gvernmental funds: General Fund - the primary perating fund f the Schl Bard and it accunts fr all financial resurces, except thse required t be accunted fr in ther funds. The General Fund is available fr any purpse prvided it is expended r transferred in accrdance with state and federal laws and accrding t Schl Bard plicy. Special Revenue Funds - accunt fr the prceeds f specific revenue surces that are legally restricted t expenditures fr specified purpses, r designated by the Schl Bard t be accunted fr separately. Debt Service Funds - accunt fr the accumulatin f resurces fr, and the payment f, general lng-term debt principal, interest, and related csts. Capital Prjects Funds - accunt fr financial resurces received and used f the acquisitin, cnstructin, r imprvement f capital facilities nt reprted in the ther gvernmental funds. Fiduciary Funds Fiduciary fund reprting fcuses n net assets and changes in net assets. The nly fund accunted fr in this categry by the Schl Bard is the agency fund. The agency fund accunts fr assets held by the Schl Bard as an agent fr schls, and schl rganizatins. These funds are custdial in nature (assets equal liabilities) and d nt invlve measurement f results f peratins. Cnsequently, the agency fund has n measurement fcus, but des use the mdified accrual basis f accunting. D. Measurement Fcus/Basis f Accunting Gvernment - Wide Financial Statements The Statement f Net Assets (exhibit A) and the Statement f Activities (exhibit B) display infrmatin abut the reprting gvernment as a whle. These statements include all the financial activities f the Schl Bard, except fr the fiduciary fund. Fiduciary funds are reprted nly in the Statement f Fiduciary Net Assets (exhibit G) at the fund financial statement level. The gvernment - wide financial statements were prepared using the ecnmic resurces measurement fcus and the accrual basis f accunting. Revenues, expenses, gains, lsses, assets and liabilities resulting frm exchange r exchange-like transactins are recgnized when the exchange ccurs (regardless f when cash is received r disbursed). Revenues, expenses, gains, lsses, assets and liabilities resulting frm nnchange transactins are recgnized in accrdance with the requirements f GASB Statement N. 33, Accunting and Financial Reprting fr Nnexchange Transactins. 16

20 CQSHATTA. LOISIANA NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES (CONTINED) D. Measurement Fcus/Basis f Accunting (Cntinued) Fund Financial Statements Gvernmental funds are accunted fr using a current financial resurces measurement fcus. With this measurement fcus, nly current assets and current liabilities are generally included n the balance sheet (exhibit C). The Statement f Revenues, Expenditures, and Changes in Fund Balances (exhibit E) reprts n the surces (i.e., revenues and ther financing surces) and uses (i.e., expenditures and ther financing uses) f current financial resurces. This apprach differs frm the manner in which the gvernmental activities f the gvernment - wide financial statements are prepared. Gvernmental fund financial statements therefre include a recnciliatin with brief explanatins t better identify the relatinship between the gvernment - wide statements and the statements fr gvernmental funds. Fund financial statements reprt detailed infrmatin abut the Schl Bard. The fcus f gvernmental fund financial statements is n majr funds rather than reprting funds by type. Each majr fund is presented in a separate clumn. Gvernmental funds and the agency fund use the mdified accrual basis f accunting. nder the mdified accrual basis f accunting, revenues are recgnized when susceptible t accrual (i.e., when they becme bth measurable and available). Measurable means the amunt f the transactin can be determined and available means cllectible within the current perid r sn enugh thereafter t pay liabilities f the current perid. The Schl Bard cnsiders all revenues available if they are cllected within 6 days after the fiscal year end. Expenditures are recrded when the related fund liability is incurred, except fr interest and principal payments n general lng-term debt which is recgnized when due, and certain cmpensated absences and claims and judgments which are recgnized when the bligatins are expected t be liquidated with expendable available financial resurces. The gvernmental funds use the fllwing practices in recrding revenues and expenditures: Revenues Ad valrem taxes are recrded in the year the taxes are due and payable. Ad valrem taxes are assessed n a calendar year basis. Taxes are levied n Octber 31 and are payable upn receipt f ntice. Ad valrem taxes attach as an enfrceable lien n prperty n December 31 f each year, and becme delinquent n January 1. Sales and use tax revenues are recrded in the mnth cllected by the tax cllectr. Entitlements (which include state equalizatin and state revenue sharing) are recrded as unrestricted grants-in-aid when available and measurable. Federal and state grants are recrded when the reimbursable expenditures have been incurred. Other receipts becme measurable and available when cash is received by the schl bard and are recgnized as revenue at that time. Expenditures Salaries are recrded as paid. Salaries fr nine-mnth emplyees wh elect t be paid ver twelve mnths are accrued at June 3. Other Financing Surces/(ses) Transfers between funds that are nt expected t be repaid (r any ther types, such as capital lease transactins, sale f fixed assets, debt extinguishment, lng-term prceeds, et cetera) are accunted fr as ther financing surces/fuses). These ther financing surces/fuses) are recgnized at the time the underlying events ccur. 17

21 NOTES TO THE FINANCIAL STATEMENTS f CONTINED) JNE NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES (CONTINED) E. Budgetary Accunting Frmal budgetary accunting is emplyed as a management cntrl. The Red River Parish Schl Bard prepares and adpts a budget prir t July 1 f each year fr its general and all special revenue funds in accrdance with Luisiana Revised Statutes. The perating budget is prepared based n prir year's revenues and expenditures and the estimated increase therein fr the current year, using the full accrual basis f accunting. The Schl Bard amends its budget when prjected revenues are expected t be less than budgeted revenues by five percent r mre and/r prjected expenditures are expected t be mre than budgeted amunts by five percent r mre. The Schl Bard apprves the verall budget at the functin level and management has authrity t transfer amunts between line items within a functin. All budget apprpriatins lapse at year end. F. Cash and Cash Equivalents Cash - includes nt nly currency n hand but als demand depsits with banks r ther financial institutins and ther kinds f accunts that have the general characteristics f demand depsits in that the custmer may depsit additinal funds at any time and als effectively may withdraw funds at any time withut prir ntice r penalty. Cash equivalents - includes all shrt term, highly liquid investments that are readily cnvertible t knwn amunts f cash and are s near their maturity that they present insignificant risk f changes in value because f interest rates. Generally, nly investments which, at the day f purchase, have a maturity date n lnger than three mnths qualify under this definitin. G. Investments Investments are limited by R.S. 33:2955 and the Schl Bard's investment plicy. If the riginal maturities f investments exceed 9 days, they are classified as investments; hwever, if the riginal maturities are 9 days r less, they are classified as cash equivalents. H. Receivables All receivables are reprted at their grss value and, where applicable, are reduced by the estimated prtin that is expected t be uncllectible. I. Bad Debts ncllectible accunts receivable are recgnized as bad debts thrugh the establishment f an allwance accunt at the time infrmatin becmes available which wuld indicate the uncllectibility f the particular receivable. At June 3, 27, $ were cnsidered t be uncllectible. J. Shrt-term Inter fund Receivables/Payable* During the curse f peratins, numerus transactins ccur between individual funds fr gds prvided r services rendered. These receivables and payables are classified as due frm ther funds r due t ther funds n the balance sheet. Shrt-term interfund lans are classified as interfund receivable/payables. 18

22 NOTES TO THE FINANCIAL STATEMENTS (CONTINED") JNE NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES (CONTINED) K. Inventry Paper, pencils and ther miscellaneus supplies are expensed when purchased due t the very small amunt f inventry maintained. Purchases f fd items in the schl fd service special revenue fund are inventried. Inventry f the schl fd service special revenue fund cnsists f fd purchases by the schl bard and cmmdities granted by the nited States Department f Agriculture thrugh the Luisiana Department f Agriculture and Frestry. All items purchased are valued at the lwer f cst, using the first-in, first-ut (FIFO) methd, r market. Csts are recrded as expenditures at the time individual items are cnsumed (cnsumptin methd). Cmmdities are assigned values based n infrmatin prvided by the nited States Department f Agriculture, als n a FIFO basis. L. Capital Assets Capital assets are carried at histrical csts. Depreciatin f all exhaustible capital assets used by the Red River Parish Schl Bard are charged as an expense against peratins in the Statement f Activities. Capital assets net f accumulated depreciatin are reprted n the Statement f Net Assets. Depreciatin is cmputed using the straight line methd ver the estimated useful life f the assets, generally 1 t 4 years fr buildings and building imprvements and 5 t 1 years fr mveable prperty. Expenditures fr maintenance, repairs and minr renewals are charged t earnings as incurred. Majr expenditures fr renewals and betterments are capitalized. M. Cmpensated Absences Red River Parish Schl Bard emplyees earn annual and sick leave at varius rates depending n the number f years in service. The maximum amunt f annual and sick leave that may be accumulated and carried frward is 48 hurs and unlimited, respectively. Several emplyees have been allwed accumulated annual leave in excess f the 48 hurs fr time accumulated under the previus plicies, which allwed fr unlimited annual leave. pn terminatin, an emplyee is cmpensated fr up t 64 hurs f unused annual and 2 hurs f sick leave at the emplyee's hurly rate f pay at the time f terminatin. nderthe Luisiana Teachers Retirement System, the ttal unused accumulated sick leave, including the 2 hurs paid, is used in the retirement benefit cmputatin as earned service fr leave earned prir t July 1, Fr sick leave earned after July 1,1988, under the Luisiana Teachers Retirement System and fr sick leave earned under the Luisiana Schl Emplyees Retirement System, all unpaid sick leave, which excludes the 2 hurs paid, is used in the retirement benefit cmputatin as earned service. Sabbatical leave may be granted fr rest and recuperatin and fr prfessinal and cultural imprvement. Any emplyee with a teaching certificate is entitled, subject t apprval by the schl bard, t ne semester f sabbatical leaver after three years f cntinuus service r tw semesters f sabbatical leave after six r mre years f cntinuus service. Sabbatical leave benefits are recrded as expenditures in the perid paid. 19

23 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE NOTE 1 SMMARY OF SIGNIFICANT ACCONTING POLICIES (CONTINED) N. Restricted Net Assets Fr gvernment-wide statement f net assets, net assets are reprted as restricted when cnstraints placed n net asset use are either: 1. Externally impsed by creditrs (such as debt cvenants), grantrs, cntributins, r laws r regulatins f ther gvernments; and 2. Impsed by law thrugh cnstitutinal prvisins r enabling legislatin. O. Fund Equity In the fund financial statements, 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. P. Interfund Transactins Transactins that cnstitute reimbursements t a fund fr expenditures initially made frm it that are prperly applicable t anther fund are recrded as expenditures in the reimbursing fund and as reductins f expenditures in the fund that is reimbursed. Nnrecurring r nnrutine permanent transfers f equity are reprted as residual equity transfers. All ther interfund transactins are reprted as transfers. Q. Sales Taxes The Red River Parish Schl Bard cllects a ne percent parish-wide sales and use tax with the net prceeds, after deducting csts f cllectin and administratin, dedicated t supplement salaries f schl bard emplyees and/r peratins f the public schls within the parish. In accrdance with a Schl Bard reslutin adpted n June 4, 1974, the prceeds f the tax are designated as fllws: 2 percent fr salaries, 35 percent fr transprtatin, 2 percent fr individual schl needs, and 25 percent t the general fund. The tax, authrized under the prvisins f LSA-R.S. 33:2737 and apprved by the vters n June 24, 1974, has n expiratin date. The schl bard als cllects a ne percent parish-wide sales and use tax with the net prceeds, after deducting the reasnable and necessary cst f administering and cllecting the tax, dedicated t emplyee salaries and benefits. The tax receipts and expenditures are accunted fr in a special revenue fund entitled Emplyee Salaries and Benefits. R. Estimates The preparatin f financial statements in cnfrmity with accunting principles generally accepted in the nited States f America require management t make estimates and assumptins that affect the reprted amunts f assets and liabilities and disclsures 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

24 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE 3.27 NOTE 2 LEVIED TAES The fllwing is a summary f authrized and levied ad valrem taxes: Parish-wide taxes Cnstitutinal Maintenance Cnstructin, repair and maintenance Emplyee salary and benefits Cnslidatin Authrized Millage Levied Millaee Expiratin Date Statutry NOTE 3 DEPOSITS WITH FINANCIAL INSTITTIONS AND INVESTMENTS A. Depsits with Financial Institutins Fr reprting purpses, depsits with financial institutins including savings, demand depsits, time depsits, and certificates f depsit. nder state law the Red River Parish Schl Bard may depsit funds within a fiscal agent bank selected and designated by the Interim Emergency Bard. Further the Schl Bard may invest in time certificates f depsit f state banks rganized under the laws f Luisiana, natinal banks having their principal ffice in the state f Luisiana, hi savings accunts r shares f savings and lan assciatins and savings banks and in share accunts and share certificate accunts f federally r state chartered credit unins. Depsits in bank accunts are stated at cst, which apprximates market. nder state law, these depsits 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 bank. These pledged securities are held in the name f the pledging fiscal agent bank in a hlding r custdial bank in the frm f safekeeping receipts mutually acceptable t bth parties. At June 3,27, the Red River Parish Schl Bard had bank depsits per balance sheet f $9,732,24, as fllws: Demand depsits Interest-bearing demand depsits Certificates f Depsit, maturities greater than 9 days Ttal 655,24 7,853, The depsits at June 3, 27 were secured as fllws: Bank Balances (Categry 3 Only, If Any) a. ninsured and uncllateralized b. ninsured and uncllateralized with securities held by the pledging institutin c. ninsured and uncllateralized with securities held by the pledging institutin's trust department r agent but nt in the entity's name Ttal Categry 3 Bank Balances Ttal Bank Balances (All Categries Including Categry 3 Reprted Abve) Cash Certificates f Depsit Ttal $_ $ $_

25 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE NOTE 3 DEPOSITS WITH FINANCIAL INSTITTIONS AND INVESTMENTS (CONTINED) A. Depsits with Financial Institutins (Cntinued) The fllwing is a breakdwn by banking institutin and amunt f the balances shwn abve: Banking Institutin Bank f Cushatta Amunt $ Ttal B. Investments At June 3, 27, the Red River Parish Schl Bard had investments f $. NOTE 4 ACCONTS RECEIVABLE The fllwing is a summary f accunts receivable at June 3, 27: Class f Receivable Other Debt Service Gvernmental General Fund Fund Funds Ttal Taxes Intergvernmental Interest $ 84,45 $ 17,99 16,4 $ ,595 $ 497, ,85 515, Ttal $ $ $ $ NOTE 5 INTERFND ASSETS/LIABILITIES Due frm/t ther funds: Fund General Debit service Other gvernmental Receivable 557,589 $ Payable Ttal $

26 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE NOTE 6 CAPITAL ASSETS A summary f Red River Parish Schl Bard's capital assets at June 3, 27 fllws: Capital Assets, nt being depreciated Land Ttal Capital Assets, nt being depreciated Balance July 1.26 Additins $ ! 6 15,657 Retirements $ Balance June $ ,657 Capital Assets, being depreciated Buildings and building imprvements Less accumulated depreciatin Ttal Buildings and building imprvements 13,741,34 ( ) 11,559,36 ( ) (353,378) 13,741,34 ( ) 11,25,982 Autmbiles and equipment Less accumulated depreciatin: Ttal Autmbiles and equipment 1,971,116 ( ) ,567 (38.527) 63.4 (261,366) ,81,317 ( ) Ttal Capital Assets, being depreciated (29.338) Ttal Capital Assets, net $ ! $ (29.338) $ $ NOTE 7 ACCONTS PAYABLE AND ACCRALS The fllwing is a summary f accunts payable at June 3,27: Class f Payable Vendr Salaries and benefits Debt Service General Fund Fund $ 171,45, $ Other Gvernmental Funds $ 19,168 $ Ttal 19, Ttal $ $ 159 $ $ NOTES LONG-TERM DEBT The fllwing is a summary f the lng-term bligatins f the Red River Parish Schl Bard fr the year ended June 3, 27: Cmpensated absences General bligatin bnds-1998 General bligatin bnds-1999 Ttal Balance June Additins Deletins $ 548, ,619 3i 159,273 6,48, , 14. Balance June $ 688,19 3 6,8, 2.7. Current Amunts 5 42,

27 NOTES TO THE FINANCIAL STATEMENTS ('CONTINED') JNE NOTE 8 LONG-TERM DEBT (CONTINED) The terms f the individual general bligatin bnds at June 3,27 are as fllws: General bligatin bnds General bligatin bnds Ttal Interest Rate Maturity Date Amunt Issued Amunt Outstanding 4.62% % 218 $ 8,75, 3.. $ $ 6,8, 2.7. $ 8,15. The annual requirements t amrtize all debt utstanding as f June 3, 27 are as fllws: Year Ended June 3, Ttal Principal Payments Interest Payments $ 565, $ 363,545 $ 595, 625, 66, 69, 4,65, 95, 339,37 313, , , , $ 8.15, $ 2.386,593 $ Ttal 928, ,37 938, , ,132 4,848, ^536,593 In accrdance with R.S. 39:562, the Schl Bard is legally restricted frm incurring lng-term bnded debt in excess f 35% f the assessed value f taxable prperty. As f June 3, 27, the statutry limit is $1,118,241, and utstanding bnded debt ttals $8,15,. NOTE 9 INTERFND TRANSFERS Operating transfers fr the year ended June 3, 27, were as fllws: Fund Transfers In Transfers Out General $ 3,758 $ Debit service Other gvernmental Ttal S $ NOTE 1 CHANGES IN AGENCY FND DEPOSITS DE OTHERS A summary f changes in agency fund depsits due thers fllws: Balance Balance Agency Funds June Additins Deletins June Schl activity accunts J $ $ $ Ttal $ $ $ $ NOTE 11 LEASES The Red River Parish Schl Bard was nt bligated under any capital r perating lease cmmitments at June 3,

28 NOTES TO THE FINANCIAL STATEMENTS (CONTINED) JNE 3. 2Q7 NOTE 12 RETIREMENT SYSTEMS Substantially all emplyees f the Schl Bard are members f tw statewide retirements systems. In general, prfessinal emplyees (such as teachers and principals) and lunchrm wrkers are member f the Teachers' Retirement System f Luisiana; ther emplyees, such as custdial persnnel and bus drivers, are members f the Luisiana Schl Emplyees' Retirement System. These Systems are cst-sharing, multiple-emplyer defined benefit pensin plans administered by separate bards f trustees. Pertinent infrmatin relative t each plan fllws: A. Teachers' Retirement System f Luisiana (TRS) The TRS cnsists f three membership plans: Regular Plan, Plan A, and Plan B. The TRS prvides retirement benefits as well as disability and survivr benefits. Ten years f service credit is required t becme vested fr retirement benefits and five years t becme vested fr disability and survivr benefits. Benefits are established and amended by state statute. The TRS issues a publicly available financial reprt that includes financial statements and required supplementary infrmatin fr the TRS. That reprt may be btained by writing t the Teachers' Retirement System f Luisiana, Pst Office Bx 94123, Batn Ruge, Luisiana , r by calling (54) Plan members are required t cntribute 8.%, 9.1% and 5.% f their annual cvered salary fr the Regular Plan, Plan A, and Plan B, respectively. The Schl Bard is required t cntribute at an actuarially determined rate. The current rate is 15.8%, 15.8% and 15.8% f annual cvered payrll fr the Regular Plan, Plan A and Plan B, respectively. Member cntributins and emplyer cntributins fr the TRS are established by state law and rates are established by the Public Retirement System's Actuarial Cmmittee. The schl bard's emplyer cntributins fr the TRS, as prvided by state law, is funded by the state f Luisiana thrugh annual apprpriatins, by deductins frm lcal ad valrem taxes, and by remittances frm the schl bard. The Schl Bard's cntributins t the TRS fr the years ending June 3, 27, 26 and 25, were $1,175,43, $1,86,184 and $1,29,939, respectively, equal t the required cntributins fr each year. B. Luisiana Schl Emplyees' Retirement System (LASERS) The LASERS prvides retirement benefits as well as disability and survivr benefits. Ten years f service credit is required t becme vested fr retirement benefits and five years t becme vested fr disability and survivr benefits. Benefits are established and amended by state statute. The LASERS issues a publicly available financial reprt that includes financial statements and required supplementary infrmatin fr the LASERS. That reprt may be btained by writing t the Luisiana Schl Emplyees' Retirement System, Pst Office Bx 44516, Batn Ruge, Luisiana 784, r by calling (54) Plan members are required t cntribute 7.5% f their annual cvered salary and the schl bard is required t cntribute at an actuarially determined rate. The current rate is 19.6% f annual cvered payrll. Member cntributins and emplyer cntributins fr the LASERS are established by state law and rates are established by the Public Retirement Systems' Actuarial Cmmittee. The schl bard's emplyer cntributin fr the LASERS is funded by the State f Luisiana thrugh annual apprpriatins. The schl bard's cntributins t the LASERS fr the years June 3,27,26 and 25, were $152,96, $132,4 and $115,763, respectively, equal t the required cntributins fr each year. 25