Fire Protection District No. 1 Beauregard Parish Police Jury State of Louisiana. Annual Financial Statements With Auditor's Report.

Transcription

1 Fire Prtectin District N. 1 Beauregard Parish Plice Jury State f Luisiana Annual Financial Statements With Auditr's Reprt December 31,2007 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 fr public inspectin at the Batn Ruge ffice f the Legislative Auditr and, where apprpriate, at the ffice f th^ parish clerk f curt. Release Date

2 Table f Cntents Statement Page(s) INDEPENDENT AUDITOR'S REPORT BASIC FINANCIAL STATEMENTS: Statement f Net Assets A 4 Statement f Activities B 5 Balance Sheet - Gvernmental Funds C 6 Recnciliatin f the Gvernmental Funds Balance Sheet t Statement f Net Assets D 7 Statement f Revenues, Expenditures and Changes in Fund Balances - Gvernmental Funds E 8 Recnciliatin f the Statement f Revenues, Expenditures and Changes in Fund Balance f Gvernmental Funds t the Statement f Activities F 9 Ntes t the Financial Statements Schedule Page(s) Required Supplemental Infrmatin General Fund- Schedule f Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 1 20 Other Supplemental Infrmatin Schedule f Cmpensatin t Bard Members 2 22 Other Reprts Schedule f Prir Year Audit Findings 3 24 Schedule f Current Year Audit Findings and Management's Respnse Reprt n Internal Cntrl Over Financial Reprting and n Cmpliance and Other Matters Based n an Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards

3 Jhn A. Windham, CPA A Prfessinal Crpratin 1620 Nrth Pine Street Jhn A. Windham, CPA DeRidder, LA Tel: (337) Fax: (337) INDEPENDENT AUDITOR'S REPORT Members f the Bard f Cmmissiners Fire Prtectin District N. 1 Parish f Beauregard State f Luisiana I have audited the accmpanying financial statements f the gvernmental activities and each majr fund f Fire Prtectin District N. 1, Parish f Beauregard, State f Luisiana, a cmpnent unit f the Beauregard Parish Plice Jury, as f and fr the year ended December 31, 2007, which cllectively cmprise the district's basic financial statements as listed in the table f cntents. These financial statements are the respnsibility f Fire Prtectin District N. 1 's management. My respnsibility is t express pinins 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 Gvernment 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 pinins. In my pinin, the financial statements referred t abve present fairly, in all material respects, the respective financial psitin f the gvernmental activities and each majr fund f Fire Prtectin District N. 1, as f December 31, 2007, and the respective changes in financial psitin, theref fr the year then ended in cnfrmity with accunting principles generally accepted in the United States f America. In accrdance with Gvernment Auditing Standards, I have als issued my reprt dated May 30,2008 n my cnsideratin f Fire Prtectin District N. 1 's internal cntrl ver financial reprting and my tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grant agreements and ther matters. The purpse f that reprt is t describe the scpe f my 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 imprtant fr assessing the results f my audit. Fire Prtectin District N. 1, has nt presented management's discussin and analysis that accunting principles generally accepted in the United States has determined is necessary t supplement, althugh nt required t be part f, the basic financial statements.

4 Members f the Bard f Cmmissiners Fire Prtectin District N. 1 Parish f Beauregard State f Luisiana Page 2 My audit was cnducted fr the purpse f frming pinins n the financial statements that cllectively cmprise Fire Prtectin District N. 1 's basic financial statements. The budgetary cmparisn schedule, schedule f per diem paid t bard members, schedule f prir year audit findings, and schedule f current year audit findings and management's respnse are presented fr purpses f additinal analysis and are nt a required part f the basic financial statements. The schedule f per diem paid t bard members, schedule f prir year audit findings, schedule f current year audit findings and management's respnse, and budgetary cmparisn schedule have nt been subjected t the auditing prcedures applied in the audit f the basic financial statements and, accrdingly I express n pinin n the schedules. DeRidder, Luisiana May 30, 2008

5 BASIC FINANCIAL STATEMENTS

6 Fire Prtectin District N. 1 Statement A Statement f Net Assets December 31,2007 Gvernmental Activities ASSETS Cash and cash equivalents $ 635,315 Receivables: Ad valrem taxes 387,364 Prepaid insurance 8,690 Capital assets, net 1,431,930 Ttal assets $ 2,463,299 LIABILITIES Accunts payable $ 68,334 Salaries payable 2,697 Payrll taxes payable 2,327 Retirement payable 1,166 Pensin payable - ad valrem tax 13,255 Accrued interest payable 13,537 Lng term liabilities: Due within ne year 55,000 Due in mre than ne year 665,000 Ttal liabilities $ 821,316 NET ASSETS Invested in capital asset, net f related debt $ 711,930 Restricted fr: Debt service 120,007 Unrestricted 810,046 Ttal net assets $ 1,641,983 Ttal liabilities and net assets $ 2,463,299 The accmpanying ntes are an integral part f this statement. 4

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8 Fire Prtectin District N. 1 Statement C Balance Sheet Gvernmental Funds December 31, 2007 ASSETS Majr Funds Ttal Gvernmental General Fund Debt Service Fund Funds Cash and cash equivalents Receivables: Ad valrem Prepaid insurance Ttal assets $ 605,455 $ 294,023 8,690 $ 908,168 $ 29,860 $ 93, ,201 $ 635, ,364 8,690 1,031,369 LIABILITIES AND FUND BALANCES Liabilities: Accunts payable Salaries payable Payrll taxes payable Retirement payable Pensin payable - ad valrem tax Ttal liabilities $ 68,334 $ 2,697 2,327 1,166 10,061 $ 84,585 $ $ 3,194 3,194 $ 68,334 2,697 2,327 1,166 13,255 87,779 Fund Balances: Reserved fr debt service Unreserved Ttal fund balances $ - $ 823,583 $ 823,583 $ 120,007 $ 120,007 $ 120, , ,590 Ttal liabilities and fund balances $ 908,168 $ 123,201 $ 1,031,369 The accmpanying ntes are an integral part f this statement. 6

9 Fire Prtectin District N. 1 Statement D Recnciliatin f the Gvernmental Funds Balance Sheet t Statement f Net Assets December 31,2007 Ttal fund balance - ttal gvernmental funds $ 943,590 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 sheets. 1,431,930 Interest payable n lng-term debt des nt require current financial resurces. Therefre interest payable is nt reprted as a liability in gvernmental funds balance sheet. (13,537) Lng-term liabilities including bnds payable are nt due and payable in the current perid and, therefre, are nt reprted in the gvernmental funds. Due within ne year $ 55,000 Due in mre than ne year 665,000 (720,000) Net assets f gvernmental activities $ 1,641,983 The accmpanying ntes are an integral part f this statement. 7

10 Fire Prtectin District N. 1 Statement E Statement f Revenues, Expenditures and Changes in Fund Balances Gvernmental Funds Fr the Year Ended December 31, 2007 Revenues Taxes: Ad valrem Insurance premium tax Grant revenue Investment incme Wrker's cmpensatin dividend Other revenues Ttal revenues Majr Funds Debt Service Genera] Fund Fund $ 300,188 $ 23,634 1,000 23,860 1, $ 350,479 $ 95, ,832 Ttal Gvernmental Funds $ 395,499 23,634 1,000 24,381 1, $ 446,311 Expenditures Current perating: Public safety Debt service: Principal Interest Capital utlay Ttal expenditures $ 269,600 $ 88,138 $ 357,738 $ 3,444 55,000 35,997 94,441 $ 273,044 55,000 35,997 88,138 $ 452,179 Excess (deficiency) f revenues ver expenditures $ (7,259) $ 1,391 $ (5,868) Other financing surces: Insurance prceeds $ 6,099 $ $ 6,099 Net change in fund balance $ (1,160) $ 1,391 $ 231 Fund balances at beginning f year 824, , ,359 Fund balances at end f year $ 823,583 $ 120,007 $ 943,590 The accmpanying ntes are an integral part f this statement.

11 Fire Prtectin District N. 1 Statement F Recnciliatin f the Statement f Revenues, Expenditures and Changes in Fund Balances f Gvernmental Funds t the Statement f Activities Fr the Year Ended December 31, 2007 Net change in fund balances - ttal gvernmental funds $ 231 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. 88,138 Repayment f bnd principal is an expenditure in the gvernmental funds, but the repayment reduces lng-term liabilities in the statement f net assets. This is the amunt f bnd repayments. 55,000 Depreciatin expense n capital assets is reprted in the gvernmentwide 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. (165,412) Accrued interest n lng term debt is nt shwn in the gvernmental funds. 1,034 Gvernmental funds nly reprt the dispsal f fixed assets t the extent prceeds are received frm the sale. In the statement f activities, a gain r lss is reprted fr each dispsal. (4,613) Change in net assets f gvernmental activities $ (25,622) The accmpanying ntes are an integral part f this statement. 9

12 NOTES TO THE FINANCIAL STATEMENTS 10

13 Fire Prtectin District N. 1 Ntes t the Financial Statements As f and fr the Year Ended December 31, 2007 INTRODUCTION Fire Prtectin District N. 1 f the Parish f Beauregard, State f Luisiana was established thrugh the adptin f a reslutin, Ordinance N. 3-78, dated May 9, 1978, by the Beauregard Parish Plice Jury, State f Luisiana. The district prvides fire prtectin and safety fr Wards One, Tw and Five f Beauregard Parish, Luisiana. A bard f five cmmissiners appinted by the Beauregard Parish Plice Jury, State f Luisiana, gverns the district and is cmpensated fr their services. Tw emplyees handle the administrative and clerical duties f the district and the rest f the district are vlunteers. The accunting plicies f the district cnfrm t generally accepted accunting principles as applicable t gvernments. Such accunting and reprting prcedures als cnfrm t the requirements f Luisiana Revised Statute 24:513 and t the guides set frth in the Luisiana Gvernmental Audit Guide, and t the industry audit guide, Audits f State and Lcal Gvernment Units. GASB Statement N. 14, The Reprting Entity, established criteria fr determining the gvernmental reprting entity and cmpnent units that shuld be included within the reprting entity. Under prvisins f this Statement, Fire Prtectin District N. 1 is cnsidered a cmpnent unit f the Beauregard Parish Plice Jury. As a cmpnent unit, the accmpanying financial statements are included within the reprting f the primary gvernment, whether blended int thse financial statements r separately reprted as discrete cmpnent units. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 all f the nnfiduciary activities f the district. Fr the mst part, the effect f interfund activity has been remved frm these statements. The statement f activities demnstrates the degree t which the direct expenses f a given functin r segments 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. Separate financial statements are prvided fr gvernmental funds. Majr individual gvernmental 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. 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. Fr this purpse, the gvernment cnsiders revenues t be available if they are cllected within 60 days f the end f the current fiscal 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 judgments, are recrded nly when payment is due. 11

14 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) 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 district reprts the fllwing majr gvernmental funds: The General Fund is the district's primary perating fund. It accunts fr all financial resurces f the general gvernment, except thse required t be accunted fr in anther fund. The Debt Service Fund accunts fr transactins relating t resurces retained and used fr the payment f principal and interest n lng-term bligatins. Private-sectr standards f accunting and financial reprting issued prir t December 1, 1989, generally are fllwed in the gvernment-wide financial statements t the extent that thse standards d nt cnflict with r cntradict guidance f the Gvernmental Accunting Standards Bard. 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-in-!ieu f taxes. Amunts reprted as prgram revenues include 1) perating grants and cntributins, and 2) capital grants and cntributins. Internally dedicated resurces are reprted as general revenues rather than as prgram revenues. Likewise, general revenues include all taxes. When bth restricted and unrestricted resurces are available fr use, it is the entity's plicy t use restricted resurces first, and then unrestricted resurces, as they are needed. C. Depsits and Investments The district's cash and cash equivalents are cnsidered t be cash n hand, demand depsits, time depsits, and shrt-term investments with riginal maturities f three mnths r less frm the date f acquisitin. State law and the district's investment plicy allw the district t invest in cllateralized certificates f depsits, gvernment backed securities, cmmercial paper, the state spnsred investment pl, and mutual funds cnsisting slely f gvernment backed securities. D. 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." Advances between funds, as reprted in the fund financial statements, are ffset by a fund balance reserve accunt in applicable gvernmental funds t indicate that they are nt available fr apprpriatin and are nt expendable available financial resurces. Prperty tax receivables are shwn net f an allwance fr uncllectibles. Prperty taxes are cllected and remitted by the lcal sheriff, if taxes are nt paid, a sheriffs sale is held and the prperty is sld t satisfy the taxes due n that prperty. Due t this, the majrity, if nt all prperty taxes are cllected, therefre n allwance accunt fr uncllectibles has been established. 12

15 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) Prperty taxes are levied n a calendar year basis and becme due n January 1 f each year. The fllwing is a summary f authrized and levied ad valrem taxes: Authrized Millage Levied Millage Expiratin Date Taxes due fr: General maintenance Debt service Renewed Annually Renewed Annually The fllwing are the principal taxpayers and related prperty tax revenue fr the district: Taxpayer Type f Business Paper Prducts Assessed Valuatin $ 44,491,213 % f Ttal Assessed Valuatin 59.32% Ad Valrem Tax Revenue fr District $ 258,494 E. Prepaid Items Certain payments t vendrs reflect csts applicable t future accunting perids and are recrded as prepaid items in bth gvernment-wide and fund financial statements. F. Capital Assets Capital assets, which include prperty, plant, equipment, and infrastructure assets, are reprted in the applicable gvernmental 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 district maintains a threshld level f $5,000 r mre fr capitalizing capital assets. Accrding t GASB 34 Fire Prtectin District N. 1 was nt required t retractively reprt infrastructure assets in its 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. Majr utlays fr capital assets and imprvements are capitalized as prjects are cnstructed. All capital assets, ther than land, are depreciated using the straight-line methd ver the fllwing useful lives: Descriptin Imprvements Buildings Furniture and fixtures Vehicles Machinery and equipment Estimated Lives years years 5-15 years 5-20 years 5-20 years G. Cmpensated Absences The district des nt allw and has n written plicy relating t cmpensated absences. 13

16 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) H. Lng-Term Obligatins In the gvernment-wide financial statements, lng-term debt and ther lng-term bligatins are reprted as liabilities in the applicable gvernmental activities, statement f net assets. Bnds payable are reprted net f the applicable bnd premium r discunt. The face amunt f the debt issued is reprted as ther financing surces. Premiums received n debt issuances are reprted as ther financing surces while discunts 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. I. Fund Equity In the fund financial statements, gvernmental funds reprt reservatins f fund balance fr amunts that are nt available fr apprpriatin r are legally restricted by utside parties fr use fr a specific purpse. Designatins f fund balance 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 events within the cntrl f the district, which are either unusual in nature r infrequent in ccurrence. The district had n extrardinary r special items as f December 31, 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 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 and expenditures during the reprting perid. Actual results culd differ frm thse estimates. L. Restricted Assets Certain prceeds f the district's general bligatin bnds, as well as certain resurces set aside fr their repayment, are classified as restricted net assets n the balance sheet because their use is limited by applicable bnd cvenants. 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETINFORMA TION The district uses the fllwing budget practices: 1. The secretary prepares a prpsed budget and submits same t the Bard f Cmmissiners n later than fifteen days prir t the beginning f each fiscal year. 2. The budget is adpted thrugh passage f an rdinance prir t the cmmencement f the fiscal year fr which the budget is being adpted. 3. 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 Cmmissiners. 4. All budgetary apprpriatins lapse at the end f each fiscal year 14

17 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) 5. The budget fr the General Fund is 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 Cmmissiners. Such amendments were nt material in relatin t the riginal apprpriatins. EXCESS OF EXPENDITURES OVER APPROPRIATIONS The fllwing individual funds had actual expenditures ver budgeted apprpriatins fr the year ended December 31, Original Final Unfavrable Budget Budget Actual Variance Fund General Fund $ 284,300 $ 282,500 $357,738 $ 75, CASH AND CASH EQUIVALENTS At December 31, 2007, the district has cash and cash equivalents (bk balances) ttaling $635,315 as fllws: Time depsits $ 481,568 Interest bearing demand depsits 9,526 Petty cash 200 Passbk Savings 144,021 Ttal $ 635,315 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 December 31, 2007, the district has $636,152 in depsits (cllected bank balances). These depsits are secured frm risk by $200,000 f federal depsit insurance and $436,152 f pledged securities held by the custdial bank in the name f the fiscal agent bank (GASB Categry 3). Even thugh the pledged securities are cnsidered uncilateralized (Categry 3) under the prvisins f GASB Statement 3, R.S. 39:1229 impses a statutry requirement n the custdial bank t advertise and sell the pledged securities within ten days f being ntified by the district that the fiscal agent has failed t pay depsited funds upn demand. Other items cncerning cash and cash equivalents are lcated at Nte 1C. 4. RECEIVABLES The receivables f $387,364 at December 31, 2007, areas fllws: Debt Service Class f receivable General Fund Fund Ttal Taxes: Ad valrem $ 294,023 $ 93,341 $ 387,364 15

18 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) CAPITAL ASSETS Capital assets and depreciatin activity as f and fr the year ended December 31, 2007, fr the district is as fllws: Gvernmental activities: Capital assets, nt being depreciated Land Beginning Balance Increase Decrease $ 22,466 5i - $ $ Ending Balance 22,466 Capital assets being depreciated Buildings Imprvements Machinery and equipment Furniture and fixtures Vehicles Ttal capital assets being depreciated 303, ,212 1,560,414 5, ,260 2,918,668 4,900-24, ,900 88,138 4, , ,212 1,584,652 5, ,160 3,001,906 Less accumulated depreciatin fr: Buildings Imprvements Machinery and equipment Furniture and fixtures Vehicles Ttal accumulated depreciatin 160,331 12,777 1,025,833 1, ,911 1,427,317 7, ,698 89, , , ,512 17,475 1,115,025 1, ,448 1,592,442 Ttal capital assets being depreciated, net $ 1,491,351 $ (77,274) $ (4,613) $ 1,409,464 Depreciatin expense f $165,412 fr the year ended December 31, gvernmental functins: 2007, was charged t the fllwing Public safety $ 165, ACCOUNTS, SALARIES, AND OTHER PAYABLES The payables f $87,779 at December 31, 2007, are as fllws: Debt Service General Fund Fund Salaries $ 2,697 $ Withhldings 2,327 - Retirement 1, Accunts 68,334 - Pensin 10,061 3,194 Ttal $ 84,585 : $ 3,194 Ttal $ 2,697 2,327 1,166 68,334 13,255 $ 87,779 16

19 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cntinued) 7. LONG-TERM OBLIGATIONS The fllwing is a summary f the lng-term bligatin transactins fr the year ended December 31, Lng-term bligatins at beginning f year Additins Principal payments Lng-term bligatins at end f year Bnded Debt 775,000 (55,000) 720,000 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 December 31, 2007: Current prtin Lng-term prtin Ttal Bnded Debt $ 55, ,000 $ 720,000 All district bnds utstanding at December 31, 2007, fr $720,000, are general bligatin bnds with maturities frm 2005 t 2017 and interest rates at 4.625% t 5.625%. Bnd principal and interest payable in the next fiscal year are $55,000 and $35,997, respectively. The individual issue is as fllws: Bnds General Obligatin Bnd Series 2002 Original Issue 5/1/2002 Interest Rate 5.625% Final Payment Due 3/1/2017 Interest t Maturity 182,475 Principal Outstanding 720,000 Funding Surce Ad valrem taxes Year Ending December 30, Ttal Principal Payments Interest Payments Ttal 55,000 60,000 60,000 65,000 70, ,000 32,903 29,669 26,594 23,703 20,581 49,025 87,903 89,669 86,594 88,703 90, , ,000 $ 182,475 $ 902,475 In accrdance with R.S. 39:562, the district is legally restricted frm incurring lng-term bnded debt in excess f 35% f the assessed value f taxable prperty. At December 31, 2007, the statutry limit is $26,248,368 and utstanding bnded debt ttals $720,

20 Fire Prtectin District N. 1 Ntes t the Financial Statements (Cncluded) 8. RETIREMENT SYSTEM The Firefighters' Retirement System f Luisiana is a cst sharing, multiple-emplyer defined benefit pensin plan administered by a separate bard f trustees. Pertinent infrmatin relative t the plan fllws: Plan Descriptin Membership in the Luisiana Firefighters' Retirement System is mandatry fr all full-time firefighters emplyed by a municipality, parish, r fire prtectin district that did nt enact an rdinance befre January 1, 1980, exempting itself frm participatin in the System. Emplyees are eligible t retire at r after age 55 with at least 12 years f creditable service r at r after age 50 with at least 20 years f creditable service. Upn retirement, members are entitled t a retirement benefit, payable mnthly fr life, equal t 3 1/3 percent f their final-average salary fr each year f creditable service, nt t exceed 100 percent f their final-average salary. Final-average salary is the emplyee's average salary ver the 36 cnsecutive r jined mnths that prduce the highest average. Emplyees wh terminate with at least 12 years f service and d nt withdraw their emplyee cntributins may retire at r after age 55 (r at r after age 50 with at least 20 years f creditable service at terminatin) and receive the benefit accrued t their date f terminatin. The System als prvides death and disability benefits. Benefits are established r amended by state statute. The System issues an annual publicly available financial reprt that includes financial statements and required supplementary infrmatin fr the System. That reprt may be btained by writing t the Firefighters' Retirement System, PO Bx 94095, Batn Ruge, LA, 70804, r by calling (225) Funding Plicy Plan members are required by state statute t cntribute 8.0 percent f their annual cvered salary and the district is required t cntribute at an actuarially determined rate. The current rate is percent f annual cvered payrll. The cntributin requirements f plan members and the district are established and may be amended by state statute. As prvided by Luisiana Revised Statute 11:103, the emplyer cntributins are determined by actuarial valuatin and are subject t change each year based n the results f the valuatin fr the prir fiscal year. The district's cntributins t the System fr the years ending December 31, 2007, 2006 and 2005 were $7,650, $8,029, and $9,345, respectively equal t the required cntributins fr each year. 9. RESERVED FUND BALANCE Assets Cash $ 29,860 Ad valrem tax receivable 93,341 Ttal assets $ 123,201 Less: Liabilities Pensin plan - ad valrem tax $ 3,194 Reserved Fund Balance $ 120,007 18

21 REQUIRED SUPPLEMENTAL INFORMATION 19

22 3-5 «3 ttl S CQ < IX O NO O 00 O 00 O m NO fs O CQ u EG q> ~O *O O 3 CQ NO O. " 00" O OO m 2 Q ± 2, 9> j-j (N f<i 5 «I 3 W 3 S (U u Q C ttjq C O» -g W X CQ w > rt S 3 rt I?l O O O r 00 IN fn t^- O N > Tf r^- O O m ON" " v IN O O V) O O NO (N -* fn O fn Jti 3 - <u O U, fn O fn O O m O O IN^ NO" O OO r^ NO" ^ IN" fs.e venues Taxes: X atin dividend U Ad valrem Insurance premi Grant revenue Investment incm Wrker's cmpen; Other revenue VI Ttal revenue xpenditures W cij. 3 *ta & «3 +j E f S. 3 ^ «U U 1 4-> Q. X (U H f revenues xcess (deficiency) w 2 w 3 rr " iii g) P c GO 2 'S c R O-.S S 1) e cc c 03 flj JS T3 C T3 C <u rt -0 TD C3 U.

23 OTHER SUPPLEMENTAL INFORMATION 21

24 Fire Prtectin District N. 1 Schedule 2 Schedule f Cmpensatin f Bard Members December 31, 2007 Number f Amunt f Meetings Per Diem Ttal Travis Brks 14 $ 30 $ 420 William Magel LlydePearce Gerge Betts Marvin Whiddn Mickey Whitaker $ 2,100 22

25 OTHER REPORTS 23

26 Fire Prtectin District N. I Schedule 3 Schedule f Prir Year Audit Findings Year Ended December 31, 2007 Finding - Financial Statement Audit There were n prir year audit findings reprted as f December 31,

27 Fire Prtectin District N. 1 Schedule 4 Schedule f Current Year Audit Findings and Management's Respnse Year Ended December 31, 2007 Finding - Financial Statement Audit Audit Finding Budget Variances Finding: The budget variance fr the general fund's expenditures was 21.03% at year-end. Accrding t the Luisiana Lcal Gvernment Budget Act R.S. 39:1311, anytime ttal actual expenditures and ther uses within a fund are exceeding ttal budgeted expenditures and ther uses by five percent r mre the individual preparing the budget shall advise the bard in writing. This variance ccurred due t a large capital utlay item f $63,900 that was included in accunts payable nt being included in the budget. Recmmendatin: I recmmend that the budgeted amunts f expenditures and ther uses be cmpared t the actual amunts thrughut the year. At any time that actual amunts exceed budgeted amunts by five percent r mre, the bard shuld be ntified in writing and the budget shuld be amended as necessary. All expenditure items shuld be budgeted including capital utlay amunts that will be included in accunts payable even thugh they are nt paid fr during the current year. 25

28 Schedule 4 BEAUREGARD FIRE DISTRICT NO. 1 P.O. BOX547 MERRYVILLE, LOUISIANA June 3,2008 Mr. Steve J. Therit, CPA P.O. Bx Batn Ruge, La Dear Mr. Therit: The audit f ur December 31.,2007 financial statements has been cmpleted and included ne finding cncerning ur budget variance in the general fund. The budget variance fr expenditures was greater than five percent as allwed by the budget act. This variance was due t the fact that we purchased a fire truck fr $63,900 at year end but did nt pay fr it until the 2008 year therefre it was nt budgeted in the 2007 year. I realized that this shuld have been budgeted in the 2007 year and all items that are set up in payables at year end in the future will be budgeted in that year. If yu require anything further please ntify me. Sincerely, Carlyn Rhdes Secretary Fire Prtectin District N. 1 26

29 Jhn A. Windham, CPA A Prfessinal Crpratin 1620 Nrth Pine Street Jhn A. Windham, CPA DeRidder,LA Tel: (337) Fax: (337) REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Members f the Bard f Cmmissiners Fire Prtectin District N. 1 Parish f Beauregard State f Luisiana I have audited the accmpanying financial statements f the gvernmental activities and each majr fund f Fire Prtectin District N. 1, as f and fr the year ended December 31, 2007, which cllectively cmprises Fire Prtectin District N. 1 's, basic financial statements and have issued my reprt theren dated May 30, 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 A uditing Standards, issued by the Cmptrller General f the United States. Internal Cntrl Over Financial Reprting In planning and perfrming my audit, I cnsidered Fire Prtectin District N. 1 's internal cntrl ver financial reprting as a basis fr designing my auditing prcedures fr the purpse f expressing my pinins n the financial statements, but nt fr the purpse f expressing an pinin n the effectiveness f Fire Prtectin District N. 1 's internal cntrl ver financial reprting. Accrdingly, I d nt express an pinin n the effectiveness f Fire Prtectin District N. 1 's internal cntrl ver financial reprting. A cntrl deficiency exists when the design r peratin f a cntrl des nt allw management r emplyees, in the nrmal curse f perfrming their assigned functins, t prevent r detect misstatements n a timely basis. A significant deficiency is a cntrl deficiency, r cmbinatin f cntrl deficiencies, that adversely affects Fire Prtectin District N. 1 's ability t initiate, authrize, recrd, prcess, r reprt financial data reliably in accrdance with generally accepted accunting principles such that there is mre than a remte likelihd that a misstatement f Fire Prtectin District N. 1 's financial statements that is mre than incnsequential will nt be prevented r detected by Fire Prtectin District N. 1 's internal cntrl. A material weakness is a significant deficiency, r cmbinatin f significant deficiencies, that results in mre than a remte likelihd that a material misstatement f the financial statements will nt be prevented r detected by Fire Prtectin District N. 1 's internal cntrl. My cnsideratin f internal cntrl ver financial reprting was fr the limited purpse described in the first paragraph f this sectin and wuld nt necessarily identify all deficiencies in internal cntrl ver financial reprting that I cnsider t be material weaknesses, as defined abve. 27

30 Members f the Bard f Cmmissiners Fire Prtectin District N. 1 Parish f Beauregard State f Luisiana Page 2 Cmpliance and Other Matters As part f btaining reasnable assurance abut whether Fire Prtectin District N. 1 's, financial statements are free f material misstatement, I perfrmed tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grant agreements, 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 ne instance f nncmpliance that is required t be reprted under Gvernment Auditing Standards and which is described in the accmpanying schedule f current year audit findings and management's respnse as audit finding Fire Prtectin District N. 1 's respnse t the findings identified in my audit is described in the accmpanying schedule f current year audit findings and management's respnse. I did nt audit Fire Prtectin District N. 1 's respnse and, accrdingly, I express n pinin n it. This reprt is intended slely fr the infrmatin and use f management, thers within the rganizatin, the Bard f Cmmissiners, 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 Statute 24:513, this reprt is distributed by the Legislative Auditr as a public dcument. DeRidder, Luisiana May 30,