TOWN OF DUSON, LOUISIANA

Transcription

1 ..F.Cf^f.W 05HAY M awn Financial Reprt Year Ended December 31, 2004 Under prvisins f state law, this reprt is a pjbvic 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 TABLE OF CONTENTS Independent Auditrs' Reprt 1 2 BASIC FINANCIAL STATEMENTS GOVERNMENTWIDE FINANCIAL STATEMENTS (GWFS) Statement f net assets 5 Statement f activities 6 FUND FINANCIAL STATEMENTS (FFS) Balance sheet gvernmental funds 9 Recnciliatin f the gvernmental funds balance sheet t the statement f net assets 10 Statement f revenues, expenditures, and changes in fund balancesgvernmental funds 11 Recnciliatin f the statement f revenues, expenditures, and changes in fund balances f gvernmental funds t the statement f activities 12 Statement f net assets prprietary fund 13 Statement f revenues, expenses, and changes in fund net assets prprietary fund 1415 Statement f cash flws prprietary fund 1617 Ntes t basic financial statements 1836 REQUIRED SUPPLEMENTARY INFORMATION General Fund: Budgetary cmparisn schedule 38 Budgetary cmparisn schedule revenues 39 Budgetary cmparisn schedule expenditures Sales Tax Special Revenue Fund budgetary cmparisn schedule Sales Tax Special Revenue Fund budgetary cmparisn schedule 44 Page

3 TABLE OF CONTENTS OTHER SUPPLEMENTARY INFORMATION Page Schedule f number f utility custmers (unaudited) 46 Schedule f insurance in frce (unaudited) 47 Statement f revenues, expenses, and changes in fund net assets utility fund 4849 INTERNAL CONTROL AND COMPLIANCE Reprt n Internal Cntrl ver Financial Reprting and n Cmpliance and Other Matters Based n an Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards Reprt n Cmpliance with Requirements Applicable t each Majr Prgram and Internal Cntrl ver Cmpliance in Accrdance with OMB Circular A Schedule f Expenditures f Federal Awards 55 Ntes t Schedule f Expenditures f Federal Awards 56 Schedule f Findings and Questined Csts 57 Summary schedule f current and prir year audit findings and crrective actin plan 5859

4 C. Burtn Klder, CPA" Russell F. Champagne. CPA* Victr R. Slaven, CPA* Cnrad 0. Chapman, CPA* P. Try Curville, CPA" Gerald A. Thibdeaux. Jr.. CPA* KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS WEB SITE: Rbert S. Carter, CPA Allen J. LaBry. CPA Harry J. Clsti, CPA A) Leger. CPA Penny Angelle Scruggins, CPA Christine L Cusin, CPA Mary T. Thibdeaux, CPA Kelly M. Ducet. CPA Kenneth J. Rachel, CPA Cheryl L Bartley, CPA, CVA Mandy B. Self, CPA * A Prfessinal Accunting Crpratin INDEPENDENT AUDITORS' REPORT MEMBER OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS The Hnrable Jhn Lagneaux, Mayr and Members f the Bard f Aldermen Twn f Dusn, Luisiana We have audited the accmpanying financial statements f the gvernmental activities, the businesstype activities, and each majr fund f the Twn f Dusn, Luisiana, as f and fr the year ended December 31, 2004, which cllectively cmprise the Twn's basic financial statements as listed in the table f cntents. These basic financial statements are the respnsibility f the Twn's management. Our respnsibility is t express pinins n these basic financial statements based n ur audit. We cnducted ur 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 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 hi 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 basic financial statements referred t abve present fairly, in all material respects, the respective financial psitin f the gvernmental activities, the businesstype activities, and each majr fund f the Twn f Dusn, Luisiana, as f December 31, 2004, 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 United States f America. In accrdance with Gvernment Auditing Standards, we have als issued ur reprt dated April 1, 2005 n ur cnsideratin f the Twn f Dusn, Luisiana's internal cntrl ver financial reprting and n ur 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 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 cnjunctin with this reprt in cnsidering the results f ur audit. The required supplementary infrmatin n pages 38 thrugh 44 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. 183 Suth Beadle Lafayette. LA Phne(337) 2324Ml Fax (337) East Bridge Sffeel Breaux Bridge. LA Phne (337) Fax (337) East Wsddil Marksville, LA 713SI Phne(318) Fax (318) David Drive, Suite 105 Mrgan City. LA Phne(985) Fa.x (985) W Cttn Sireei Ville Platte, LA Phne(337) Fax (337) W Sixth Avenue Oberlin, LA Phne (337) Fax (337) Suth Main Stieet Abbev,lle LA Phne j37) Fax (3 " (

5 The Twn f Dusn has nt presented management's discussin and analysis that the Gvernmental Accunting Standards Bard has determined is necessary t supplement, althugh nt required t be a part f, the basic financial statements. Our audit was cnducted fr the purpse f frming pinins n the basic financial statements that cllectively cmprise the Twn f Dusn's basic financial statements. The ther supplementary infrmatin n pages 46 thrugh 49 is presented fr purpses f additinal analysis and is nt a required part f the basic financial statements f the Twn f Dusn, Luisiana. The accmpanying schedule f expenditures f federal awards n page 55 is presented fr purpses f additinal analysis as required by U.S. Office f Management and Budget Circular A133, Audits f States, Lcal Gvernments, and NnPrfit Organizatins, and is nt a required part f the basic financial statements f the Twn f Dusn, Luisiana. Such infrmatin, except fr that prtin marked "unaudited" n which we express n pinin, has been subjected t the auditing prcedures applied in the audit f the basic financial statements and, in ur pinin, is fairly presented in all material respects in relatin t the basic financial statements taken as a whle. The financial infrmatin fr the preceding year, which is included fr cmparative purpses, was taken frm the financial reprt fr that year in which we expressed unqualified pinins n the basic financial statements f the Twn f Dusn, Luisiana. Klder, Champagne, Slaven & Cmpany, LLC Certified Public Accuntants Lafayette, Luisiana April 1,2005

6 BASIC FINANCIAL STATEMENTS

7 GOVERNMENTWIDE FINANCIAL STATEMENTS (GWFS)

8 Statement f Net Assets December 31, 2004 ASSETS Current assets: Cash and interestbearing depsits Investments Receivables, net Due frm ther gvernmental units Prepaid items Ttal current assets Gvernmental Activities $ 607, ,270 78,435 71,890 16,844 1,400,585 BusinessType Activities $ 120,063 76,678 39,748 8,861 11, ,055 Ttal $ 727, , ,183 80,751 28,549 1,657,640 Nncurrent assets: Restricted assets: Cash and interestbearing depsits Investments Capital assets: Land and cnstructin in prgress Capital assets, net Ttal nncurrent assets 62,827 1,087,195 1,150, ,884 23,924 88,727 5,176,110 5,487, ,884 23, ,554 6,263,305 6,637,667 Ttal assets 2,550,607 5,744,700 8,295,307 LIABILITIES Current liabilities: Accunts and ther payables Revenue bnds payable Accrued interest Ttal current liabilities 24,928 24,928 16,908 11,168 55,181 83,257 41,836 11,168 55, ,185 Nncurrent liabilities: Custmer depsits payable Revenue bnds payable Ttal nncurrent liabilities 35,563 1,378,832 1,414,395 35,563 1,378,832 1,414,395 Ttal liabilities NET ASSETS Invested in capital assets, net f related debt Restricted fr debt service Unrestricted Ttal net assets 24, ,652 1, ,150,022 3,886,005 5,036, , ,896 1,375, ,615,804 $2,525,679 $4, $ 6.772,727 The accmpanying ntes are an integral part f the basic financial statements. 5

9 t l CO Q ( 1 T^ O O ^ ON» * O ON ^ rs v^i r*i ^ * V.1 O *"** ^^ '^ * (N '^^ <N W ^f (N s SO ^^ C5 */^ r r*** C^N ^> ON s ON ^D CN 00 iji NO "O ~^ m ^f r W^ t^l z~ (N r* <N t*^ fn O *O O NO NO (N O NO O 00 (N V% " ON s" O ON r 00 NO If) r ON ^ ^r O r G C4 ON' s O s' r tn t tn" r r; w I u c u tti 'J? c D_ X W i2 O trt n S CO ^ 00 J3 U O, >> CO H 1.2 en.' tg > C " "en <* 3 ^ ca *» /"N ' ^1 O wi r ON OO VI v% ^ 2 r m 2 En C*l (N ON (N 00 «N rf" z 1 S K u v.t^1^ 11 '^ S < r^ ^ ON ^ O ' O Oi ^~ f ON "~ ON fl O rn (S VI fl NO > ON ^ OO ^H ^ C^i (S ^ ^ ' ' ^fs SO ^ ' ' ' SO r*l ON (N SO OOOCSO ON ct Ml ON r (N <N. cd *j c e O a s i ~ si «t ON O ^f r^ f^t O r O\ W1 "*,, ^ r*l a* r * f^ V r r ^f (N " r < < " 1 S S t_ g 00.S 1 II 1 J S 8 O CO Grants a Cntribut r r (N "it r 00 * rs' 111* ^^ O rrl a " ^ c3 lu \X. ^fj S.^ ^i th t* Q ft en U T3.O 53 *E u en" ryi W C» CO e U S t rr. ta!a. 2 ON * (N "t r~ "^> " s' ' ' ' Oi vi CA flr± m e> r ^O f*** OO ^f SO ON c^l ^f *^v s ^3 r" r" " ^ ^ ON O rf V^ (N ON ^O ON ON ^^* a g % en en C U & W ' ' rn (*4 OO fo VI O OO ^~ (N ON ON O r <O f^i OO *"^ O ^ "" (^4 m tn <N & * cf ON i ^ vc cf " ON <N rj SO EO O 3 C S * M ON S; (j 1. vi 2 ^f a> S ** Ch S u 4 Q a a <u u [/I W % 3 tj 13 Z Z I Q. 13 "(8 U5 t3 1 O. S C! c E Si ^ e>0 1 H 05 2 ^ _p* "«C3 U usiness C S ^ "Tta "* at > C > ra > C«t/1 03 U Q. <n U.S en3 11 H bo a.

10 FUND FINANCIAL STATEMENTS (FFS)

11 FUND DESCRIPTIONS General Fund The General Fund is used t accunt fr resurces traditinally assciated with gvernments which are nt required t be accunted fr in anther fund. Special Revenue Funds Special revenue funds are used t accunt fr specific revenues that are legally restricted t expenditures fr particular purpses Sales Tax Fund T accunt fr the receipt and use f prceeds f the Twn's 1% sales and use tax. These taxes are dedicated fr the purpse f cnstructing, acquiring, extending, imprving and maintaining sewers, sewerage dispsal wrks, waterwrks facilities, drainage facilities, public streets and rads and bridges, including the purchase f equipment Sales Tax Fund T accunt fr the receipt and use f prceeds f the Twn's 1% sales and use tax. These taxes are dedicated fr the purpse f cnstructing and acquiring extensins and imprvements t the waterwrks plant and distributin system f the Twn and prviding fr the maintenance theref; cnstructing, imprving and maintaining public streets and drainage facilities fr the Twn; cnstructing, acquiring, extending, imprving and maintaining the sewerage cllectin and dispsal facilities f the Twn; and maintaining and perating any ther wrks f public imprvement fr the Twn, and purchasing and acquiring the necessary land and equipment therefr; and shall the Twn be further authrized t fund the prceeds f the tax int bnds fr the purpse f cnstructing, acquiring, extending, and/r imprving capital imprvements f the Twn t the extent and in the manner permitted by the laws f Luisiana. Enterprise Fund Utility Fund T accunt fr the prvisin f water, sewerage and sanitatin (garbage) services t residents f the Twn. All activities necessary t prvide such services are accunted fr in this fund, including, but nt limited t, administratin, peratins, maintenance, financing and related debt service, and billing and cllectin.

12 9 Balance Sheet Gvernmental Funds December 31,2004 With Cmparative Ttals fr December 31,2003 General Sales Tax Sales Tax Special Special Revenue Revenue 2004 Ttals 2003 ASSETS Cash and interestbearing depsits Investments Receivables: Taxes Other Due frm ther gvernmental units Prepaid items Ttal assets $ 8, ,847 34,314 20,635 71,890 16,844 $307,559 $290,881 8,423 11,743 11,743 $ 607,146 $ 626,270 57,800 20,635 71,890 16, , ,784 56,434 22,892 86,311 15,938 $770,236 $327,725 $ 302,624 $1,400,585 $1,287,978 LIABILITIES AND FUND BALANCES Liabilities; Accunts payable Accrued liabilities Ttal liabilities $ 14,920 10,008 24,928 14,920 10,008 24,928 14,435 9,855 24,290 Fund balances Reserved fr prepaid items Unreserved, undesignated Ttal fund balances 16, , , , , , ,844 15,938 1,358,813 1,247,750 1,375,657 1,263,688 Ttal liabilities and fund balances $ 770,236 $ 327,725 $ 302,624 $1,400,585 $1,287,978 The accmpanying ntes are an integral part f the basic financial statements.

13 Recnciliatin f the Gvernmental Funds Balance Sheet t the Statement f Net Assets December 31,2004 Ttal fund balances fr gvernmental funds at December 31,2004 $ 1,375,657 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 $ 62,827 Buildings and imprvements, net f $74,732 accumulated depreciatin 385,434 Infrastructure, net f $302,017 accumulated depreciatin 525,235 Equipment and vehicles net f $347,147 accumulated depreciatin 176,526 1,150,022 Ttal net assets f gvernmental activities at December 31,2004 $2,525,679 The accmpanying ntes are an integral part f the basic financial statements. 10

14 Statement f Revenues, Expenditures, and Changes in Fund Balances Gvernmental Funds Year Ended December 31,2004 With Cmparative Ttals fr the Year Ended December 31,2003 Revenues: Taxes Licenses and permits Intergvernmental Fines and frfeits Miscellaneus Ttal revenues General $ 97,189 90, ,186 56, , , Sales Tax Special Revenue $ 182, , Sales Tax Special Revenue $182, , $ 461,789 90, ,186 56, ,009 1,136,257 Ttals 2003 $ 533,495 89, ,894 78, ,252 1,325,522 Expenditures: Current General gvernment Public safety: Plice Fire Streets Parks and recreatin Capital utlay Ttal expenditures 278, ,278 11, , , ,700 3,354 _ 3,354 2,327 2, , ,278 11, , , , , ,488 21, , , ,227 Excess f revenues ver expenditures 45, , , , ,295 Other financing surces (uses): Transfers in Transfers ut Ttal ther financing surces (uses) 155,100 (55,080) 100,020 (93,827) (93,827) (299,100) (299,100) 155,100 (448,007) (292,907) (173,392) (173,392) Net changes in fund balances 145,525 85,443 (118,999) 111, ,903 Fund balances, beginning 599, , ,623 1,263, ,785 Fund balances, ending $ 745,308 $ 327,725 $302,624 $1,375,657 $1,263,688 The accmpanying ntes are an integral part f the basic financial statements. 11

15 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 31,2004 Ttal net changes in fund balances at December 31,2004 per Statement f Revenues, Expenditures and Changes in Fund Balances $ 111,969 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. Capital utlay which is cnsidered expenditures n Statement $ 27,732 f Revenues, Expenditures and Changes in Fund Balances Depreciatin expense fr the year ended December 31, 2004 (88,972) (61,240) Ttal changes hi net assets at December 31, 2004 per Statement f Activities $ 50,729 The accmpanying ntes are an integral part f the basic financial statements. 12

16 Statement f Net Assets Prprietary Fund December 31,2004 and 2003 ASSETS Current assets: Cash and interestbearing depsits Investments Receivables: Accunts Due frm ther gvernmental units Prepaid items Ttal current assets Nncurrent assets: Restricted assets Cash and interestbearing depsits Investments Capital assets: Land and cnstructin in prgress Other capital assets, net f accumulated depreciatin Ttal nncurrent assets Ttal assets LIABILITIES Current liabilities: Accunts payable Cntracts payable Retainage payable Bnd anticipatin ntes payable Accrued interest n bnd anticipatin nte Accrued liabilities Payable frm restricted assets Revenue bnds payable Interest payable Ttal current liabilities Nncurrent liabilities: Custmers' depsits Revenue bnds payable Ttal nncurrent liabilities Ttal liabilities NET ASSETS Invested in capital assets, net f related debt Restricted fr debt service Unrestricted Ttal net assets Utility Enterprise Fund $ 120,063 76,678 39,748 8,861 11, , ,884 23,924 88,727 5,176,110 5,487,645 5,744,700 10,192 6,716 11,168 55,181 83,257 35,563 1,378,832 1,414,395 1,497,652 $ 178,010 74,719 36, ,682 11, ,199 14,948 18,195 1,942,942 2,647,517 4,623,602 5,322,801 18, ,684 58,998 1,266,000 4,862 6,851 1,695,347 33,143 33,143 1,728,490 3,886,005 3,324, , , ,852 $4,247,048 $3,594,311 The accmpanying ntes are an integral part f the basic financial statements. 13

17 14 Statement f Revenues, Expenses, and Change in Fund Net Assets Prprietary Fund Fr the Years Ended Ended December 31, 2004 and 2003 Operating revenues: Charges fr services Water charges Sewer service charges Sanitatin charges Miscellaneus Ttal perating revenues Utility Enterprise Fund $ 97, ,548 74, ,455 $ 92,294 87,932 73, ,538 Operating expenses: Salaries Payrll taxes Retirement General insurance Aut and truck expense Utilities and telephne Maintenance and repairs Supplies and parts Office expense Garbage cllectin fees Depreciatin expense Dues and fees Prfessinal fees Cmputer service Engineering fees Grup health insurance Meals, ldging and travel Miscellaneus Ttal perating expenses 118,192 9,413 8,309 17,303 3,148 29,681 54,898 44,934 4,985 73, ,990 1,679 15,717 5,042 6,635 31, ,122 91,038 7,981 5,984 4,515 2,186 24,807 33,493 33,019 2,773 76, , ,236 6,062 22, ,271 Operating lss (331,667) (228,733) (cntinued)

18 Statement f Revenues, Expenses, and Change in Fund Net Assets (Cntinued) Prprietary Fund Fr the Years Ended December 31,2004 and 2003 Utility Enterprise Fund Nnperating revenues (expenses): Interest incme Interest expense Ttal nnperating revenues (expenses) Lss befre cntributins and transfers 1,928 (55,181) (53,253) (384,920) 1,659 1,659 (227,074) Capital cntributins Transfers in: Transfer frm 1969 Sales Tax Fund Transfer frm 1983 Sales Tax Fund Transfer frm General Fund Ttal transfers in Change in net assets Net assets, beginning 744,750 93, ,000 55, , ,737 3,594, ,000 80,972 86,420 6, , ,318 3,005,993 Net assets, ending $4,247,048 $3,594,311 The accmpanying ntes are an integral part f the basic financial statements. 15

19 Statement f Cash Flws Prprietary Fund Fr the Years Ended December 31, 2004 and 2003 Cash flws frm perating activities: Receipts frm custmers Payments t suppliers Payments t emplyees Other receipts Net cash used by perating activities Utility Enterprise Fund $ 269,485 (307,876) (127,605) 759 (165,237) $ 256,277 (225,942) (99,019) 535 (68,149) Cash flws frm nncapital financing activities: Operating transfers frm ther funds Cash flws frm capital and related financing activities: Prceeds frm revenue bnds payable Prceeds frm bnd anticipatin ntes Principal paid n ntes payable Increase in custmer depsits payable Acquisitin f prperty, plant and equipment Prceeds frm grants Net cash prvided (used) by capital and related financing activities Cash flws frm investing activities: Purchase f investments Interest n investments Net cash prvided (used) by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning f perid 292,907 1,390, ,682 (1,266,000) 2,420 (1,256,912) 735,889 4,079 (7,688) 1,928 (5,760) 125, , , ,318 2,873 (1,551,192) 642,000 (39,001) (1,019) 1, , ,076 Cash and cash equivalents, end f perid $ 318,947 $_ 192,958 (cntinued) 16

20 Statement f Cash Flws Prprietary Fund (Cntinued) Fr the Years Ended December 31,2004 and 2003 Recnciliatin f perating lss t net cash used by perating activities; Operating lss Adjustments t recncile perating lss t net cash used by perating activities: Depreciatin Changes in current assets and liabilities: (Increase) decrease in accunts receivable Increase in prepaid items Increase (decrease) in accunts payable Increase (decrease) in accrued liabilities Ttal adjustments Net cash used by perating activities Utility Enterprise Fund $(331,667) $(228,733) 178,990 (3,211) (454) (8,760) (135) 166, ,101 2,274 (8,828) 5,945 5, ,584 $(165,237) $ (68,149) Recnciliatin f cash and cash equivalents per statement f cash flws t the balance sheet: Cash and cash equivalents, beginning f perid Cash unrestricted Interestbearing depsits unrestricted Cash restricted Ttal cash and cash equivalents Cash and cash equivalents, end f perid Cash unrestricted Interestbearing depsits unrestricted Cash restricted Interestbearing depsits restricted Ttal cash and cash equivalents $ 40, ,614 14, , ,866 17,197 11, , ,947 $ 16,217 98,013 11, ,076 40, ,614 14, ,958 Net increase $ 125,989 $ 66,882 The accmpanying ntes are an integral part f the basic financial statements. 17

21 Ntes t Basic Financial Statements (1) Summary f Significant Accunting Plicies The accmpanying financial statements f the Twn f Dusn (Twn) have been prepared in cnfrmity with generally accepted accunting principles (GAAP) as applied t gvernmental units. GAAP includes all relevant Gvernmental Accunting Standards Bard (GASB) prnuncements. In the gvernmentwide financial statements and the fund financial statements fr the prprietary funds, Financial Accunting Standards Bard (FASB) prnuncements and Accunting Principles Bard (APB) pinins n r befre Nvember 30, 1989, have been applied unless thse prnuncements cnflict with r cntradict GASB prnuncements, in which case, GASB prevails. The accunting and reprting framewrk and the mre significant accunting plicies are discussed in subsequent subsectins f this nte. A Financial Reprting Entity The Twn f Dusn was incrprated under the prvisins f the Lawrasn Act. The Twn perates under the MayrBard f Aldermen frm f gvernment. This reprt includes all funds that are cntrlled by r dependent n the Twn executive and legislative branches (the Mayr and Bard f Aldermen). Cntrl by r dependence n the Twn was determined n the basis f budget adptin, taxing authrity, authrity t issue debt, electin r appintment f gverning bdy, and ther general versight respnsibility. Based n the freging criteria, ne gvernmental rganizatin is nt part f the Twn and is thus excluded frm the accmpanying financial statements. This rganizatin is the Dusn Vlunteer Fire Department. Althugh the Twn des prvide facilities and sme f their financing, n cntrl is exercised ver their peratins. B. Basis f Presentatin GvernmentWide Financial Statements (GWFS) The statement f net assets and statement f activities display infrmatin abut the reprting gvernment as a whle. They include all funds f the reprting entity. The statements distinguish between gvernmental and businesstype activities. Gvernmental activities generally are financed thrugh taxes, intergvernmental revenues, and ther nnexchange revenues. Businesstype activities are financed in whle r in part by fees charged t external parties fr gds r services. The statement f activities presents a cmparisn between direct expenses and prgram revenues fr the businesstype activities f the Twn and fr each functin f the Twn's gvernmental activities. Direct expenses are thse that are specifically assciated with a prgram r functin and, therefre, are clearly identifiable t a particular functin. Prgram revenues include (a) fees, fines, and charges paid by the recipients f gds r services ffered by the prgrams, and (b) grants and cntributins that are restricted t meeting the peratinal r capital requirements f a particular prgram. Revenues that are nt classified as prgram revenues, including all taxes, are presented as general revenues. 18

22 Ntes t Basic Financial Statements (Cntinued) Fund Financial Statements The accunts f the Twn are rganized and perated n the basis f funds. A fund is an independent fiscal and accunting entity with a separate set f selfbalancing accunts. Fund accunting segregates funds accrding t their intended purpse and is used t aid management in demnstrating cmpliance with financerelated legal and cntractual prvisins. The minimum number f funds is maintained cnsistent with legal and managerial requirements. The varius funds f the Twn are classified int tw categries: gvernmental and prprietary. The emphasis n fund financial statements is n majr gvernmental and enterprise funds, each displayed in a separate clumn. A fund is cnsidered majr if it is the primary perating fund f the Twn r meets the fllwing criteria: a. Ttal assets, liabilities, revenues, r expenditures/expenses f that individual gvernmental r enterprise fund are at least 10 percent f the crrespnding ttal fr all funds f that categry r type: and b. Ttal assets, liabilities, revenues, r expenditures/expenses f the individual gvernmental r enterprise fund are at least 5 percent f the crrespnding ttal fr all gvernmental and enterprise funds cmbined. belw: All funds f the Twn are cnsidered t be majr funds and are described Gvernmental Funds General Fund The General Fund is the general perating fund f the Twn. It is used t accunt fr all financial resurces except thse required t be accunted fr in anther fund. Special Revenue Funds 1969 Sales Tax Fund The 1969 Sales Tax Fund is used t accunt fr the prceeds f a ne percent sales and use tax that is legally restricted t expenditures fr specific purpses Sales Tax Fund ^ The 1983 Sales Tax Fund is used t accunt fr the prceeds f a ne percent sales and use tax that is legally restricted t expenditures fr specific purpses. 19

23 Ntes t Basic Financial Statements (Cntinued) Prprietary Fund Enterprise Fund Enterprise funds are used t accunt fr peratins (a) that are financed and perated in a manner similar t private business enterprises 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, expenses incurred, and/r net incme is apprpriate fr capital maintenance, public plicy, management cntrl, accuntability, r ther purpses. The Twn f Dusn's enterprise fund is the Utility Fund. C. Measurement Fcus/Basis f Accunting Measurement fcus is a term used t describe "which" transactins are recrded within the varius financial statements. Basis f accunting refers t 'Svhen" transactins are recrded regardless f the measurement fcus applied. Measurement Fcus On the gvernmentwide statement f net assets and the statement f activities, bth gvernmental and businesstype activities are presented using the ecnmic resurces measurement fcus as defined in item b. belw. In the fund financial statements, the "current financial resurces" measurement fcus r the "ecnmic resurces" measurement fcus is used as apprpriate: a. All gvernmental funds utilize a "current financial resurces" measurement fcus. Only current financial assets and liabilities are generally included n their balance sheets. Their perating statements present surces and uses f available spendable financial resurces during a given perid. These funds use fund balance as their measure f available spendable financial resurces at the end f the perid. b. The prprietary fund utilizes an "ecnmic resurces" measurement fcus. The accunting bjectives f this measurement fcus are the determinatin f perating incme, changes in net assets (r cst recvery), financial psitin, and cash flws. All assets and liabilities (whether current r nncurrent) assciated with their activities are reprted. Prprietary fund equity is classified as net assets. 20

24 Ntes t Basic Financial Statements (Cntinued) Basis f Accunting In the gvernmentwide statement f net assets and statement f activities, bth gvernmental and businesstype activities are presented using the accrual basis f accunting. Under the accrual basis f accunting, revenues are recgnized when earned and expenses are recrded when the liability is incurred r ecnmic asset used. Revenues, expenses, gains, lsses, assets, and liabilities resulting frm exchange and exchangelike transactins are recgnized when the exchange takes place. Revenues, expenses, gains, lsses, assets, and liabilities resulting frm nnexchange transactins are recgnized in accrdance with the requirements f GASB Statement N, 33 "Accunting and Financial Reprting fr Nnexchange Transactins." In the fund financial statements, gvernmental funds are presented n the mdified accrual basis f accunting. Under this mdified accrual basis f accunting, revenues are recgnized when "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 (including capital utlay) are recrded when the related fund liability is incurred, except fr general bligatin bnd principal and interest which are reprted when due. The prprietary fund utilizes the accrual basis f accunting. Under the accrual basis f accunting, revenues are recgnized when earned and expenses are recrded when the liability is incurred r ecnmic asset used. D. Assets. Liabilities and Equity Cash, interestbearing depsits, and investments Fr purpses f the statement f net assets, cash and interestbearing depsits include all demand accunts, savings accunts, and certificates f depsits f the Twn. Fr the purpse f the prprietary fund statement f cash flws, "cash and cash equivalents" include all demand and savings accunts, and certificates f depsit r shrtterm investments with an riginal maturity f three mnths r less. At December 31, 2004, all f the Twn's investments are in the Luisiana Asset Management Pl (LAMP), which are stated at amrtized cst. Interfund receivables and payables During the curse f peratins, numerus transactins ccur between individual funds that may result in amunts wed between funds. Thse related t gds and services type transactins are classified as "due t and frm ther funds." Shrtterm interfund lans are reprted as "interfund receivables and payables." Lngterm interfund lans (nncurrent prtin) are reprted as "advances frm and t ther funds." Interfund receivables and payables between funds within gvernmental activities are eliminated in the statement f net assets. 21

25 Ntes t Basic Financial Statements (Cntinued) Receivables In the gvernmentwide statements, receivables cnsist f all revenues earned at yearend and nt yet received. Majr receivable balances fr the gvernmental activities include ad valrem taxes, sales and use taxes, franchise taxes, and il ryalties. Businesstype activities reprt custmer's utility service receivables as their majr receivables. Uncllectible amunts due fr ad valrem taxes and custmer's utility service receivables are recgnized as bad debts at the time infrmatin becmes available which wuld indicate the uncllectibility f the particular receivable. Althugh the specific chargeff methd is nt in cnfrmity with generally accepted accunting principles (GAAP), n allwance fr uncllectible receivables is recrded due t immateriality at December 31, Unbilled utility service receivables resulting frm utility services rendered between the date f meter reading and billing and the end f the mnth, are nt recrded due t immateriality at December 31,2004. Capital Assets Capital assets, which include prperty, plant, equipment, and infrastructure assets, are reprted in the applicable gvernmental r businesstype activities clumns in the gvernmentwide r fund 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 Twn maintains a threshld level f $500 r mre fr capitalizing capital assets. 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. Depreciatin f all exhaustible capital assets is recrded as an allcated expense in the statement f activities, with accumulated depreciatin reflected hi the statement f net assets. Depreciatin is prvided ver the assets' estimated useful lives using the straightline methd f depreciatin. The range f estimated useful lives by type f asset is as fllws: Buildings and imprvements Equipment and vehicles Utility system and imprvements Infrastructure 40 years 310 years 1050 years 40 years In the fund financial statements, capital assets used in gvernmental fund peratins are accunted fr as capital utlay expenditures f the gvernmental fund upn acquisitin. Capital assets used in prprietary fund peratins are accunted fr the same as in the gvernmentwide statements. 22

26 Ntes t Basic Financial Statements (Cntinued) Restricted Assets Restricted assets include cash, interestbearing depsits, and investments f the prprietary fund that are legally restricted as t their use. The restricted assets are related t the revenue bnd accunts and utility meter depsits. Lngterm debt The accunting treatment f lngterm debt depends n whether the assets are used in gvernmental fund peratins r prprietary fund peratins and whether they are reprted in the gvernmentwide r fiind financial statements. All lngterm debt t be repaid frm gvernmental and businesstype resurces are reprted as liabilities in the gvernmentwide statements. The lngterm debt cnsists primarily f utility meter depsits payable. Lngterm debt fr gvernmental funds is nt reprted as liabilities in the fund financial statements. The debt prceeds are reprted as ther financing surces and payment f principle and interest reprted as expenditures. The accunting fr prprietary fund lngterm debt is the same in the fund statements as it is in the gvernmentwide statements. Cmpensated Absences Vacatin and sick leave are recrded as expenditures f the perid in which paid. Vacatin is nrmally taken in the year accrued but can be carried ver. Sick leave is accumulated by emplyees at a rate dependent upn number f years f emplyment. Althugh sick leave is available fr emplyees when needed, it des nt vest nr is it payable at terminatin f emplyment. Due t immateriality, the liability fr these cmpensated absences is recrded as a current liability in bth the gvernmentwide and fund financial statements. Equity Classificatins In the ±j gvernmentwide statements, equity is classified as net assets and displayed in three cmpnents: a. Invested in capital assets, net f related debt Cnsists f capital assets including restricted capital assets, net f accumulated depreciatin and reduced by the utstanding balances f any bnds, mrtgages, ntes, r ther brrwings that are attributable t the acquisitin, cnstructin, r imprvement f thse assets. b. Restricted net assets Cnsists f net assets with cnstraints placed n the use either by (1) external grups such as creditrs, grantrs, cntributrs, r laws r regulatins f ther gvernments; r (2) law thrugh cnstitutinal prvisins r enabling legislatin. 23

27 Ntes t Basic Financial Statements (Cntinued) c. Unrestricted net assets All ther net assets that d nt meet the definitin f "restricted" r "invested in capital assets, net f related debt." In the fund financial statements, gvernmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Prprietary fund equity is classified the same as in the gvernmentwide statements. E. Revenues. Expenditures, and Expenses Operating Revenues and Expenses Operating revenues and expenses fr prprietary funds are thse that result frm prviding services and prducing and delivering gds and/r services. It als includes all revenue and expenses nt related t capital and related financing, nncapital financing, r investing activities. Expenditures/Expenses In the gvernmentwide financial statements, expenses are classified by functin fr bth gvernmental and businesstype activities. In the fund financial statements, expenditures are classified as fllws: Gvernmental Funds By Character Prprietary Fund By Operating and Nnperating In the fund financial statements, gvernmental funds reprt expenditures f financial resurces. Prprietary funds reprt expenses relating t use f ecnmic resurces. Interfund Transfers Permanent reallcatins f resurces between funds f the reprting entity are classified as interfund transfers. Fr the purpses f the statement f activities, all interfund transfers between individual gvernmental funds have been eliminated. F. Revenue Restrictins The Twn has varius restrictins placed ver certain revenue surces frm state r lcal requirements. The Twn uses unrestricted resurces nly when restricted resurces are fully depleted. The primary restricted revenue surces include: Revenue Surce Legal Restrictins f Use Sales tax See Nte 3 Utility Fund revenues Debt service and utility peratins 24

28 Ntes t Basic Financial Statements (Cntinued) G. Budget and Budgetary Accunting The Twn fllws these prcedures in establishing the budgetary data reflected in the financial statements: 1. Prir t December 15, the Twn Clerk submits t the Mayr and Bard f Aldermen a prpsed perating budget fr the perid cmmencing the fllwing January 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 publicatin f the call fr the hearing. 4. After the hlding f the public hearing and cmpletin f all actin necessary t finalize and implement the budget, the budget is adpted thrugh passage f a reslutin 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. 6. All budgetary apprpriatins lapse at the end f each fiscal year. 7. Budgets fr all funds are adpted n a basis cnsistent with generally accepted accunting principles (GAAP). Budgeted amunts are as riginally adpted r as amended by the Bard f Aldermen. H. Capitalizatin f Interest Expense It is the plicy f the Twn f Dusn t capitalize material amunts f interest resulting frm brrwings in the curse f the cnstructin f capital assets. At December 31,2004, interest in the amunt f $7,642 n the bnd anticipatin nte was capitalized n the sewer upgrade prject. 25

29 Ntes t Basic Financial Statements (Cntinued) Use f Estimates The preparatin f financial statements in cnfrmity with generally accepted accunting principles requires 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. (2) Ad Valrem Taxes Ad valrem taxes attach as an enfrceable lien n prperty as f January 1 f each year. Taxes are levied by the Twn in September r Octber and are actually billed t taxpayers in Nvember r December. Billed taxes becme delinquent n January 1 f the fllwing year. The Twn bills and cllects its wn prperty taxes using the assessed values determined by the Tax Assessrs f Lafayette and Acadia Parishes. Twn prperty tax revenues are budgeted in the year billed. Fr the year ended December 31, 2004, taxes f 7.73 mills were levied n prperty with assessed valuatins ttaling $3,754,550 and were dedicated fr general crprate purpses. Ttal taxes levied were $29,023. Taxes receivable at December 31, 2004, cnsisted f the fllwing: Taxes receivable current rll $ 29,023 Taxes receivable prir rll 5,291 $34,314 (3) Sales and Use Tax Prceeds f a 1 percent sales and use tax (accunted fr in the 1969 Sales Tax Fund a special revenue fund) levied by the Twn f Dusn (2004 cllectins $182,300; 2003 cllectins $218,870) are dedicated t the fllwing purpses: Cnstructing, acquiring, extending, imprving and maintaining sewers, sewerage dispsal wrks, waterwrks facilities, drainage facilities, public streets and rads and bridges, including the purchase f equipment. 26

30 Ntes t Basic Financial Statements (Cntinued) Prceeds f a 1 percent sales and use tax (accunted fr in the 1983 Sales Tax Fund a special revenue fund) levied by the Twn f Dusn (2004 cllectins $182,300; 2003 cllectins $218,870) are dedicated t the fllwing purpses: Cnstructing and acquiring extensins and imprvements t the waterwrks plant and distributin system f the Twn and prviding fr the maintenance theref; cnstructing, imprving and maintaining public streets and drainage facilities fr the Twn; cnstructing, acquiring, extending, imprving and maintaining the sewerage cllectin and dispsal facilities f the Twn; and maintaining and perating any ther wrks f public imprvement fr the Twn, and purchasing and acquiring the necessary land and equipment therefre; and shall the Twn be further authrized t fund the prceeds f the tax int bnds fr the purpse f cnstructing, acquiring, extending, and/r imprving capital imprvements f the Twn t the extent and in the manner permitted by the laws f Luisiana. (4) Cash and InterestBearing Depsits Under state law, the Twn may depsit funds within a fiscal agent bank rganized under the laws f the State f Luisiana, the laws f any ther state in the Unin, r the laws f the United States. The Twn may invest in certificates and time depsits f the state banks rganized under Luisiana law and natinal banks having principal ffices in Luisiana. At December 31, 2004, the Twn had cash and interestbearing depsits (bk balances) ttaling $926,093 as fllws: Demand depsits $713,980 Savings and mney market accunts 212,113 Ttal $926,093 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 bank. These securities are held in the name f the pledging fiscal agent bank hi a hlding r custdial bank that is mutually acceptable t bth parties. Depsit balances (bank balances) at December 31,2004 were secured as fllws: Bank balances $ 952,552 Federal depsit insurance $ 200,000 Pledged securities (Categry 3) 752,552 Ttal FDIC insurance and pledged securities $ 952,552 27

31 28 Ntes t Basic Financial Statements (Cntinued) Pledged securities in Categry 3 include uninsured r unregistered investments, fr which securities are held by the brker r dealer, r by its trust department r agent, but nt in the Twn's name. Even thugh the pledged securities are cnsidered uncllateralized (Categry 3), Luisiana Revised Statute 39:1229 impses a statutry requirement n the custdial bank t advertise and sell the pledged securities within 10 days f being ntified by the Twn that the fiscal agent has failed t pay depsited funds upn demand. (5) Investments Investments in the amunt f $726,872 at December 31, 2004 are in the Luisiana Asset Management Pl (LAMP), a lcal gvernment investment pl. In accrdance with GASB Cdificatin Sectin , the investment in LAMP is nt categrized in the three risk categries prvided by GASB Cdificatin Sectin because the investment is in the pl f funds and thereby nt evidenced by securities that exist in physical r bk entry frm. LAMP is administered by LAMP, Inc., a nnprfit crpratin rganized under the laws f the State f Luisiana, and is gverned by a bard f directrs cmprised f representatives frm varius lcal gvernments and state wide prfessinal rganizatins. Only lcal gvernments having cntracted t participate in LAMP have an investment interest in its pl f assets. While LAMP is nt required t be a registered investment cmpany under the Investment Cmpany Act f 1940, its investment plicies are similar t thse established by the Securities and Exchange Cmmissin's (SEC's) Rule 2a7, which gverns registered mney market funds. The primary bjective f LAMP is t prvide a safe envirnment fr the placement f public funds in shrtterm, high quality investments. The LAMP prtfli includes nly securities and ther bligatins in which lcal gvernments in Luisiana are authrized t invest. Accrdingly, LAMP investments are restricted t securities issued, guaranteed, r backed by the U.S. Treasury, the U.S. gvernment, r ne f its agencies, enterprises r instrumentalities, as well as repurchase agreements cllateralized by thse securities. The dllar weighted average prtfli maturity f LAMP assets is restricted t nt mre than 90 days and cnsists f n securities with a maturity in excess f 397 days. The fair market value f investments is determined n a weekly basis t mnitr any variances between amrtized cst and market value. The fair market value f the Twn's investment in LAMP is the same as the value f the pl shares. Nrmally, investments are required t be reprted at fair value. Fr purpses f determining participants' shares, investments are valued at amrtized cst. Investments in an external investment pl can be reprted at amrtized cst f the external investment pl. LAMP is an external investment pl that perates in a manner cnsistent with SEC Rule 2a7. The fair value f the investment is nt materially different frm the reprted amunt. LAMP is designed t be highly liquid t give its participants immediate access t their accunt balances.

32 29 Ntes t Basic Financial Statements (Cntinued) (6) Receivables Receivables at December 31,2004 f $118,183 cnsist f the fllwing: Accunts Taxes: Ad valrem Sales tax Franchise tax Oil ryalties Ttals General Sales Tax Sales Tax Utility Ttal $ $ $ $39,748 $ 39,748 34,314 7,972 12,663 11,743 $54,949 $11,743 11,743 $11,743 $39,748 34,314 23,486 7,972 12,663 $118,183 (7) Due frm Other Gvernmental Units Amunts due frm ther gvernmental units at December 31, 2004 cnsisted f the fllwing: General Fund: Amunt due frm the State f Luisiana fr vide pker receipts fr the mnths f Nvember and December 31, ,866 Amunt due frm the State f Luisiana fr beer tax revenues earned during fiscal year ending December 31, ,024 Prprietary Fund: Amunt due frm United States Department f Agriculture fr sewer system imprvements. 8,861 $ 80,751 (8) Restricted Assets Prprietary Fund Type Restricted assets f $222,808 cnsisted f the fllwing at December 31,2004: Bnd sinking fund $ 157,578 Bnd reserve fund 12,163 Bnd cntingency fund 17,504 Custmers' depsits: Cash 11,639 Investments 23,924 $222,808

33 Ntes t Basic Financial Statements (Cntinued) (9) Capital Assets Capital asset activity fr the year ended December 31, 2004 was as fllws: Balance Balance 01/01/04 Additins Deletins 12/31/04 Gvernmental activities: Capital assets nt being depreciated: Land $ 62,827 $ $ $ 62,827 Other capital assets: Buildings and imprvements 457,819 2, ,166 Infrastructure 812,692 14, ,252 Equipment and vehicles 512,848 10, ,673 Ttals 1,846,186 27,732 1,873,918 Less accumulated depreciatin Buildings and imprvements 62,772 11,960 74,732 Infrastructure 281,053 20, ,017 Equipment and vehicles 291,099 56, ,147 Ttal accumulated depreciatin 634,924 88, ,896 Gvernmental activities, capital assets, net $1,211,262 $ (61,240) $ $1,150,022 Businesstype activities: Capital assets nt being depreciated: Land $ 40,030 $ 23,100 $ $ 63,130 Cnstructin in prgress 1,902, ,541 2,701,856 25,597 Other capital assets: Plant and equipment water system 2,409,691 2,409,691 Plant and equipment sewer system 2,082,092 2,707,583 4,789,675 Office equipment 18,975 18,975 Ttals 6,453,700 3,555,224 2,701,856 7,307,068 Less accumulated depreciatin Plant and equipment water system 985, ,561 1,089,613 Plant and equipment sewer system 863,204 73, ,577 Office equipment 14,985 1,056 16,041 Ttal accumulated depreciatin 1,863, ,990 2,042,231 Businesstype activities, capital assets, net $4,590,459 $3,376,234 $2,701,856 $5,264,837 30