TOWNOFNEWLANO ANUALFINANCIALREPORT

Transcription

1 i I'[A[" TOWNOFNEWLANO ANUALFINANCIALREPORT WithComparativeTotalsforJune30,196 FORTHEYEARENDEDJUNE30,197 ~epor~isapublicducm~.,nṭa copyc,f','h,.-;repotih~s!~ensubmit- J;:,~,?':;i"[.)l'ovi~;iOl,:-:.Ofsl.alelaw,~,f'ns I-'.dtothe,!mi'.~t,or,-vi.~:we(.:,,:~-;~i,~.~/.-'~:~:Jo-liu~LJpr,:.,gri:-Y[epL]blic, ulhci,-l{:-.i[~e~ap:.,~tb.k-,vai!m:hefor p~bicinspel~.ic.rlaịthebak:,n for{;rid,whe:reaproṛ>tk,te,.~:{the o:ic~.~oflh~p~ri.':hc:t,:~rkofcu6:,,dan2~198

2 TABLEOFCONTENTS ndependentauditors'report GeneralPurposeFinancialStatements CombinedBalanceShet-AlFundTypesandAcountGroups CombinedStatementofRevenues,Expenditures,andChanges infundbalances-algovernmentalf-'undtypes StatementofRevenues,Expenditures,andChangesinFundBalanoes [3udget(GAPBasis)andActual-GeneralFund StatementofRevenues,Expenses,andChangesinRetained learnings-proprietaryfundtype StatementofCashFlows NotestoFinancialStatements ProprietaryFundType ndependentauditors'reportoncomplianceandoninternalcontrol C)verFinancialReportingBasedonanAuditofFinancialStatements PerformedinAcordanceWithGovernmentAuditingStandards ScheduleofFindingsandQuestionedCost,Pa~e

3 ROZIER,HARINGTON&McKAY CERTIFIEDPUBLICACOUNTANTS JohnS.Razier,IV,C.P.A. ALEXANDRIA.LOUISIANA PETERMANDRIVE M.D~.leHarington,C.P.A MarkS.McKay,C.P.A. LeV#.Wilis,C.P.A. Alexandria,LA MAILINGADRES P.O.Box12"i78 HeidiS.Noris,C.P.A Telephone(318) IndeEendentALtd_i_to_rs'R_ep_q~ August2,197 Telecopier(318) TheHonorableVicSmith,Mayor TownofNewLlano.Louisiana andmembersoftheboardofaldermen Wehaveauditedtheacompanyingeneral-purposefinancialstatementsoftheTownofNew Llano,LouisianasofandfortheyearendedJune30,197,aslistedinthetableofcontents ThesegeneralpurposefinancialstatementsaretheresponsibilityoftheTownofNewLlano, Louisiana'smanagement.Ouresponsibilityistoexpresanopiniononthesegeneralpurposefinancialstatementsbasedonouraudit. Weconductedour'auditinacordancewithgeneralyaceptedauditingstandardsandthe standardsaplicabletofinancialauditscontainedingovernmentalauditingstandards,isued bythecomptrolergeneraloftheunitedstates.thosestandardsrequirethatweplanand perlormtheauditobtainreasonableasuranceaboutwhetherthefinancialstatementsare freofmatedalmistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthefinancialstatements.anauditalsoincludes asesingtheacountingprinciplesusedandsignificantestimatesmadebymanagement,as welasevaluatingtheoveralfinancialstatementpresentation.webelievethatouraudit providesareasonablebasisforouropinion. Inouropinion,thegeneral-purposefinancialstatementsreferedtoabovepresentfairly,inal materialrespects,thefinancialpositionofthe]ownofnewllano,louisiana,asofjune30, 197,andtheresultsofitsoperationsandthecashflowsofitsproprietaryfundtypesforthe yearthenendedinconformitywithgeneralyaceptedacountingprinciples. InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdated August2,197,onourconsiderationoftheTownofNewLlano,Louisiana'sinternalcontrol overfinancialreportingandourtestsofitscompliancewithcertainprovisionsoflaws, regulations,contractsandgrants. ROZIER,HARINGTON&McKAY CertifiedPublicAcountants AmericanInstituteofCertifiedPublicAc~unt;ants.SocietyofLouisiana,CPAs -Men-iber~-

4 COMBINEDSTATEMENTOFREVENUES,EXPENDITURESAND TOWNOFNEWLANO,LOUISIANA CHANGESINFUNDBAIANCE WithComparativeTotalsfortheYearEndedJune30,196,MIGovermaentalFundTypes FortheyearendedJune30,197 Capital Revenues: Projects MemorandumTotals 19( Taxes:Advalorem Licensesandpermits: Saleslax $19,121$ Intergovernmenlal: Ocupationalicenses 73,659 S1~121$ Franchise 65,804 73, Tobacotax , (,5 Bertax Miscelaneous: Videopoker 13,51 61, <) 626]1 Grantrevenues 2, ,512,941 9, ,91 Fines -19,10 hlerest Cqher ExEx~,ndilures: qotalrevenues 60,8283, ,8283, (I.6N( 3,1~ ( Generalgovernment Publ:csafety StretsandDrainage 97,760 CapitalOutlays 245, Exces(deficiency)ofrevenuesover l'otslexpenditures , ,06 45, S31 5~,.3!i OTIERFINANCINGSOURCES(USES): expenditures (5,852) (7) (5,859) Opelatingtransfersin Ope,atln8transfersout 82,63 Exces(deficiency)ofrevenuesald Totalotherfinancingsources(t~s) :63-.(20,403) (20,403) ~ndotherfinancingsourcesover Fundbalance-bel;inine expendituresandotheruses 76,781 Fundbalance-endofyear $ (20,410) 62,230 (92,4~1 (15,3'~' 7,( $ ,791 ( Theacompanyingnotesareaninlegralpartoflhefinancialstatements. -3-

5 TOWNOFNEWI,LANO,LOUISIANA STATEMENTOFREVENUES,EXPENDITURESAND CFIANGESINFUNDBALANCE-BUDGET(GAPBASIS)ANDACTUAL GeneralFund FortheyearendedJune30,197 Revenues: Taxes Licenseandpermits ]ntergovemcntal Miscelaneous Totalrevenues Expenditures: Generalandadministrative Publicsafety Stretsandrainage CapitalOutlays Totalexpenditre~ Exces(deficiency)ofrevenuesover expenditures OTHERFINANCINGSOURCES(USES): Operatingtransfersin Operatingtransfersout Totalotherf'manolngsources(uses) Exces(deficiency)ofrevenuesand andotherfinancingsourcesover expendituresandotheruses Fundbalance-bel;imdngofyear Fundbalance-endofye,~tr GeneralFtmd Budget 98,0 123,0 54, ,30 95,20 249,90 30, ,780 27,589 15, ,69 97, ,06 45, (1,490) (5,852) (1,490) 138,38 $126,898 Variantw Favorable (Unfavorable (5,2(1 4, (2,569) 4,894 (14,948) ) (17,7(,1~ , , ,781 8,25 138,38 $215,169 Theacompanyingnotesareanintegmlpartofthefinancialstatements

6 Operatin~revenues; Watercharges Sewercharges Servicehar~es Miscelaneous TOWNOFNEWL1,ANO,LOUISIANA STATEMENTOFREVENUES,EXPENSESAND CHANGESINRFTA1NEDEARNINGS PropletalyFundType [:ortheyearendedjune30,197 WithComparativeTotalsfi,"theYearEndedJune30,196 Operatingex12_ense~ Waterpurchases Salariesandwages Materials,suplies,andnlaintenance Oficeandposlage Payroltaxes Vehicleandtravel ]lstlrale Prolbsionaltes Miscelaneous Utilitiesandtelephone Technicaltraining Depreciation Uniformandequipmentrental Oper~dingincome Transfersin '1rans6zrsou Netainedearmfings-eldof)'ear 20,017 94,935 16, ,23 97, (62,230) (62,230) 39, S386,25 7wacompanyhtgnotesareanintegralpartofthefinancialstatements. -5- $28,637 94,489 6, , , (3,627) ,0,

7 TOWNOFNEWLANO,LOUISIANA STATEMENTOFCASHFLOWS WithComparative"lbtalstotheYearEndedJune FOrthe)'earendedJune30,197 Proprietaryl%ndType Operatingincome(los) Adjustmentstoreconcileoperatingincometonetcash providedbyoperatingactivilies: $97,946 Depreciation (Increase)decrez-~einacountsreceivable (Increase)decre~;~induefromotherfunds (Decrease)increaseinduetotherfunds (9,93) (12.~1% (Decrease)increaseinacountspayable (Decrease)increaseinacruedliabilities (I)ecrease)increaseinrestrictedliabilities 16,017 5,27 (56,0193 g,g3 Netcashprovided(used)hyoperating 497 (5,~7~) 2.?3~ 79~ activities ~ Netcashprovided(tLued)hynon-capital (62,230) 5.~9i Cashflowsfromcar~italandre]atedfinancinl~ financingacti~jties (62,230) 5.~9 activities: Revenuebondproceds Acquisitionandconstructionofcapitalasets Net('ashprovided(t~-cd)bycapitaland ( ) (80.~I relatedfinancingactivities Netcashprovided(used)byinvesting activilies IJeginingcashbalance 25,151 70,375 (50.a 3(15A,0 Sunlemenlaldisclosuresofcashflawinfiwmalion FIltheyearsendedJune30,197and196therewerenoinvesting,capital,andfinancingactivitiesthatdidnot resultilcashleceiptsorpaymcn s 7heacompato,ingnotesareanintegralpartofthefinancialstatments. -6-

8 NOTESTOFINANCIALSTATEMENTS TOWNOFNEWLANO,LOUISIANA June NOTE:-1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES OrganizationandBasisofPresentation TheacountingandreportingpracticesoftheTownofNewLlano,Louisiana,conformto generalyaceptedacountingprinciplesasaplicabtetogovernmentalunitsonaconsistent basisbetwenperiods. Thefolowingisasumaryofthemoresignificantacountingpolicies FinanciatReportinaEnti GovernmentalAcountingStandardsBoard(GASB)StatementNo. determiningwhichcomponentunitshouldbeconsideredpartof Louisiana,forfinancialreportingpurposes.)'hebasicriterion componentunitwithinthereportingentityisfinancialacountability. criteriatobeconsideredindeterminingfinancialacountability.this cdteriaincludes: 14establishedcdtedafor thetownofnewllano, forincludingapotential TheGASBhasetforth 1.Apointingavotingmajorityofanorganization'sgoverningbody,and a.theabilityofthemunicipalitytoimposeitswilonthatorganizationand/or b.thepotentialfortheorganizationtoprovidespecificfinancialbenefitstor imposespecificfinancialburdensonthemunicipalitỵ 2.Organizationsforwhichthemunicipalitydoesnotapointavotingmajoritybut 3.Organizationsforwhichthereporting arefiscalydependentonthemunicipality. rnisleadingifdataoftheorganizationis significanceoftherelationship. entityfinancialstatementswouldbe notincludedbe~tuseofthenatureor Basedupontheabovecriteria,theTownofNewLlanohasnocomponentunitsfortheyear endedjune

9 TOWNOFNEWLANO,LOUISIANA NOTESTOFINANCIALSTATEMENTS NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) June FundAcounting TheacountsofthE:Townareorganizedonthebasisofundsoracountgroups,eachof whichisconsideredaseparateacountingentity.]'heoperationsofeachfundareacounted forwithaseparatesetofself-balancingacountsthatcompriseitsasets,liabilities,fund equity,revenues,andexpendituresorexpen.~;esasapropriate.governmentresourcesare alocatedtoandacountedforinindividualfundsbaseduponthepurposesforwhichtheyare tobespentandthemeansbywhichspendingactivitiesarecontroled.thefolowingfund types,andacountgroupsareusedbythetown: GOVERNMENTALFUNDS GeneralFund-TheGeneralFundisthegeneraloperatingfundoftheTown.Itis usedtoacountforalfinancialresourcesexcepthoserequiredtobeacountedforin anotherfund. CapitalProjec_tFund-Capitalprojectfundsareusedtoacountforfinancialresources tobeusedfortheacquisitionorconstructionofmajorcapitalfacilities,otherthan PROPRIETARYFUND thosefinancedbyproprietaryfundsandtrustfunds. EnterpriseFund-TheEnterpriseFundisusedtoacountforoperations(a)thatare financedandoperatedinamanersimilartoprivatebusinesenterprises-wherethe intentofthegoverningbodyisthathecosts(expenses,includingdepreciation)of providingodsorservicestothegeneralpubliconacontinuingbasisbefinancedor recoveredpdmadlythroughuserchargesor(b)wherethegoverningbodyhasdecided thatperiodicdeterminationofrevenuesearned,expensesincured,and/ornetincome isapropdateforcapitalmaintenance,publicpolicy,managementcontrol, acountabilityorotherpurposes.thenterprisefundsofthetownacountfor ACOUNTGROUPS operationsofacombinedwaterandsewersystem. GeneralFixedA_setsAcountGrou~_~-Thisgroupofacountsisusedtoacountfor BasisofAcounting fixedasetsofthetownotherthanthoseacountedforinthepropdetaryfunds. Basisofacountingreferstowhenrevenuesandexpendituresorexpensesarerecognizedin theacountsandreportedinthefinancialstatements.basisofacountingrelatestothe timingofthemeasurementsmade,regardles.,~ofthemeasurementfocusaplied. Al~overnmentalfundsandagencyfundsareacountedforusingthemodifiedacrualbasis ofacounting.theirevenuesarerecognizedwhentheybecomemeasurableandavailable asnetcurentasets.taxpayer-asesedincome,grosreceipts,andsalestaxesare considered"measurable"wheninthehandsofthetownandarerecognizedasrevenueat -8-

10 NOTESTOFINANCIAL.STATEMENTS TOWNOFNEWLANO,LOUISIANA NOTF1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) June thatime.anticipatedrefundsofsuchtaxesarerecordedasliabilitiesandreductionsof revenuewhentheyaremeasurableandtheirvaliditysemscertain. therelatedfundliabilityisincured.anexceptiontothisgeneralruleisprincipalandinterest Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacountingwhen onlong-termdebt,whichisrecognizedwhendue. andarenotrecorded. Inbothgovernmentalandproprietaryfunds,inventoriesofsupliesareconsideredimateria Theproprietary(enterprise)fundisacountedforusingtheacrualbasisofacounting. incured.utilityrevenuesarebiledonacyclebasisandarerecognizedinthemonthbiled. Revenuesarerecognizedwhentheyarearned,andexpensesarerecognizedwhentheyare thendofthemonthavebenrecognizedintheacompanyingfinancialstatements. Unbiledservicereceivablesresultingfromutilityservicesrenderedbetwencyclebilingand Thebasisofacourtingfolowedbyproprietaryfundsisimilartoacountingpracticesutilized bybusinesenterprises.duetothesesimilarities,proprietaryfundsarealowedtofolow certainpronouncementhataredevelopedbythefinancialacountingstandardsboard (FASB)forbusinesenterprises.Howew:r,theTownonlyapliesthoseFASB pronouncementsthatwereisuedonorbeforenovember30,1989. TheTownfolowstheseproceduresinestablishingthebudgetarydatareflectedinthefinancia Budc]etsandBudaetarvPractices statements. TheTownClerkpreparesaproposedbudgetforthegeneralfundfortheupcoming yearandsubmitsitothemayorandboardofaldermenolaterthanfiftendaysprior tothebeginingofthatyear.thisbudgetincludesproposedexpendituresandthe meansofinancingthem. Asumaryoftheproposedbudgetispublished,andthepublicisnotifiedthathe proposedbudgetisavailableforpublicinspection.athesam(.,time,thedateofa 3.Apublichearingisheldontheproposedbudgetatleastendaysafterpublicationof publichearingispublished. 4.Afterholdingthepublichearingandpriortothecomencementofthenewyear,the thecalforthehearing. budgetislegalyenactedthroughpasageofanordinance. 5.Albudgetaryapropriationslapseathendofeachfiscalyear' aceptedacountingprinciples(gap).budgetedamountsareasoriginaly adopted,orasamendedfromtimetotimebythemayorandboardofaldermen. BudgetsfortheGeneralFundareadoptedonabasisconsistentwithgeneraly Suchamendmentswerenotmaterialinrelationtotheoriginalapropriations. -9-

11 NOTESTOFINANCIALSTATEMENTS TOWNOFNEWLANO,LOUISIANA June NOTE-1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) CashandCashEQuivalentsandInvestments Cashincludesamountsindemandepositsandinterest-bearingdemandeposits.Cash equivalentsincludeamountsintimedeposits.understatelaw,thetownmaydepositfundsin demandeposits,interest-bearingdemandeposits,moneymarketacountsortimedeposits withstatebanksorganizedunderlouisianalawandnationalbankshavingtheirprincipal oficesinlouisiana. Understatelaw,theTownmayinvestinU.S.bonds,treasurynotesorcertificates.Theseare clasifiedasinvestmentsiftheiroriginalmaturitiesexced90days;however,iforiginal maturitiesare90daysorles,theyareclasifiedascashequivalents.thetownhadno investmentsatjune DueTo/FromOtherFunds Amountsineachfundlistedasdueto/fromareofsetbycorespondingentnesinotherfunds. Funoshownasuchareconsideredavailableforexpenditureunlespecificalyrestricted withinthestatements.interfundreceivablesandpayablesarenoteliminatedinthe preparationofcombinedfinancialstatements. FixedAsetsandLoncl-TermLiabilities Fixedasetsusedingovernmentalfundtypeoperations(generalfixedasets)areacounted forinthegeneralfixedasetsacountgroup,andtheyarerecordedasexpendituresinthe governmentalfundtypeswhenpurchased.thetownhaselectedtocapitalizepublicdomain ("infrastructure")fixedasetsconsistingofcertainimprovementsincludingroads,bridges, sidewalksandrainageimprovements.nodepreciationhasbenprovidedongeneralfixed asets.fixedasetsarevaluedathistoricalcostincludinginterest,unlestheyweredonated inwhichcasetheyarevaluedatfairmarketvalueathedateofdonation.atjune30,197, there,'werenomaterialamountsofdonatedasets. Long-termliabilitiesexpectedtobefinancedfromgovernmentalfundsareacountedforinthe GeneralLong-Termr)ebtAcountGroup.AsofandfortheyearendedJune30,197,there wasnoactivityinthegenerallong-termdebtgroup. Thesetwoacountgroupsarenot"funds."]heyareconcernedonlywiththemeasurementof financialposition.theyarenotinvolvedwithmeasurementofresultsofoperations. Fixedasetsusedintheproprietaryfundtypeoperationsareincludedonthebalanceshetof thefundathistoricalcostincludinginterest.fortheyearendedjune30,197,totalinterest costscapitalizedamountedto$7,836.depreciationofalexhaustiblefixedasetsusedby proprietaryfundischargedasanexpenseagainstheiroperations.acumulatedepreciation isreportedontheproprietaryfundbalanceshet.depreciationhasbenprovidedover 10.

12 NOTESTOFINANCIALSTATEMENTS TOWNOFNEWLANO,LOUISIANA June NOTEI-SUMARYOFSIGNIFtCANTACOUNTINGPOLICIES(Continued) thestimatedusefulivesusingthestraightqinemethod.thestimatedusefulivesareas folows: WaterUtility WaterLinesandSystem FireHydrants 50years Meters SewerUtility Equipment 5-7years 10years LinesandSystem Trucks Equipment 5-20years 50years 5years ContributedCa_pit&l IntheEnterpriseFunds,amountscontributedtotheTownforacquisitionorconstructionof fixedasetsarerecordedascontributedcapital.depreciationofthesecontributedcapital asetsiscomputedusingthestraight-linemethodoverthestimatedusefulivesoftheasets andischargedasacurentperiodexpense. Res_erves Reservesrepresenthoseportionsofundequitynotapropdableforexpenditureorlegaly segregatedforaspecificfutureuse. TheTownhasadoptedGovernmentAuditingStandardsBoardStatementNo.9"Reporting tatementofcashflows CashFlowsofProprietaryandNon-Expendable]rustFundsandGovernmentalEntitiesThat cashflowsaspartofafulsetofinancialstatementsinsteadofreportingastatementof UseProprietaryFundAcounting."Thistatementrequiresentitiestoreportastatementof changesinfinancialposition.forthepurposesofreportingcashflows,cashandcash equivalentsincludesalcashonhand,cashinbankandcertificatesofdeposit. FortheyearendedJune30,197,therewerenomaterialnon-cashinvestingactivitiesornon capitalandrelatedfinancingactivities. Itisnotpracticaltoestimatetheamountofcompensationforfutureabsencesunderthe edabsences Town'sacountingsystem.Acordingly,noliabilityisrecorded.TheTown'spolicyisto recognizethecostofcompensatedabsenceswhenactualypaidtoemployes.

13 NOTESTOFINANCIAl.STATEMENTS TOWNOFNEWLANO,LOUISIANA June30,197 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) nted:undtransactions Quasi-externaltransactionsareacountedforasrevenues,expendituresorexpenses. Transactionsthatconstitutereimbursementstoafundforexpenditures/expensesinitialymade fromithatareproperlyaplicabletoanotherfund,arerecordedasexpenditures/expensesin thereimbursingfundandasreductionsofexpenditures/expensesinthefundthatis reimbursed. Alotherinterfundtransactions,exceptquasi-externaltransactionsandreimbursements,are reportedastransfers.nen-recuringornon-reutinepermanentransfersofequityarereported asresidualequitytransfers.alotherinterfundtransfersarereportedasoperatingtransfers. TotalColumnsonCombinedStatements-Overview Totalcolumnsonthecombinedstatementsarecaptioned"MemorandumTotals"toindicate thatheyarepresentedonlytofacilitatefinancialanalysis,datainthesecolumnsdonot presentfinancialposition,resultsofoperations,orchangesincashflowsinconformitywith generalyaceptedacountingprinciples.neitherisuchdatacomparabletoaconsolidation. Interfundeliminationshavenotbenmadeintheagregationofthisdata BadDebts Uncolectibleamountsdueforadvaloremtaxesandcustomers'utilityreceivablesare recognizedasbadebtsthroughtheestablishmentofanalowanceacountbasedon historicalinformationwhichwouldindicatetheuncolectibilityasapercentageoftheparticular receivable. UseofEstimates Thepreparationofinancialstatementinconformitywithgeneralyaceptedacounting principlesrequiresmanagementomakeestimatesandasumptionsthatafectcertain reportedamountsandisclosures.acordinglyactualresultscouldiferfromthose estimates. EncumbranceAcountina Purchaseorders,contracts,andothercomitmentstoengageinfuturexpendituresare referedtoasencumbrances.sincencumbrancesdonotrepresentliabilitiesorcurent expenditures,encumbrancesarenotreporteclintheacompanyingfinancialstatements. -12-

14 LesFDICoverage Subtotal LesSecuritiesPledgedtoTown (20,0) ButheldintheNameoftheFinancial ExcesofI-DICInsuranceandPledged Institution(Uncolateralized-GASB Category3) 839=8_0. Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category3)underthe Securities provisionsofgasbstatement3,louisianalawimposesastatutoryrequirementonthe custodialbanktoadvertiseandselthepledgedsecuritieswithin10daysofbeingnotifiedby the]ownthathepledgingbankhasfailedtopaydepositedfundsupondemand. NOTE3-ADVALOREM AdvaloremtaxesatachasanenforceablelienonpropertyasofJanuary1ofeachyear. TaxesareleviedbytheTowninSeptemberorOctoberandareactualybiledtothetaxpayers innovember,biledtaxesbecomedelinquentonjanuary1ofthefolowingyear.revenues fromadvaloremtaxesarebudgetedintheyearbiled. FortheyearendedJune30,197,taxesof4.0milswereleviedonpropertyandwere dedicatedtogeneralcorporatepurposes.therewerenomaterialamountsoftaxesreceivable atjune ~13-

15 NOTE4-RECEIVABLES TOWNOFNEWLANO,LOUISIANA NOTESTOFINANCIAL.STATEMENTS June30,197 ThereceivablesatJune30,197,areasfolows ChargesforServices Other Alowancefor Uncolectibles Totals DuefromOtherGovernments ReceivablesNet NOTE5-GENERALFIXEDASETS General F_un_d_. $ $42,809 2_~47._9 Ll~,01g Enterprise Fund $81,80 (23,50) $58,380 Asumaryofchangesingeneralfixedasets,atcost,folows BuildingsandLand ImprovementsOther ThanBuildings Equipment Balance Begining $107,15 539, Aditions $ - 20,91 _._3,845 Deletions Memorandum Total $81, (23,50) $101,189 24,79 $ Balance Ending $-$107,15-560, NOTE6-PROPERTYANDEQUIPMENT AsumaryofthepropertyandequipmentintheEnterpriseFundatJune30,197,consistsof the~olowing: Land Building DistributionSystem Equipment Vehicles ConstructioninProgres LesAcumulated Depreciation NetPropertyandEquipment -14- $28,835 4, ,196 5;4,028 20,

16 CarolynTod BruceCryer JimyStewart ErnestPhaneuf 2,80 RonaldMamano Totals 2,70 Alderman $2.50 2,80 2,70 NOTE10-CONTRIBUTEDCAPITAL ChangesincontributedcapitalacountfortheyearendedJune30,197,areasfolows Enterprise BalanceatJune30,196 Fund Aditions $780, BalanceatJune30,197 $~I~J3~6-15-

17 TOWNOFNEWLANO,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30.I97 NOTE1-LONGTERMDEBT NotespayableintheEnterpriseFundrepresentmoneyborowedfromtheLouisiana DepartmentofEnvironmentalQualityforPhaseIoftheSewerTreatmentFacility.Funds aredrawnfortheprojectasnededandarenotoexced$1,0,0intotal.atjune30, 197,theprincipalbalanceofundsdrawntotaled$70,472.Thenotesbearaninterest rateof2.45%peranumwithinterestpaymentsduesemi-anualyandcomencing September1,196.Principalpaymentsaredueanualywithpaymentscomencing March1,198andendingMarch1,2017.Asumarybyearsoftheprincipalpayments owedontheirnoteareasfolows: FiscalYear Ended Instalment Principal ,0 Therea~er 4O,O0 Total 570.4,_4Z

18 JohnS.Rozier,IV,C.P.A. M.Dal~Harington,C.PA. MarkS.McKay,C.P.A LeW.Wilis,C.P.A. HeJdJS.Noris.C.P.A ROZIER.HARINGTON&McKAY CERTIFIEDPUBLICACOUNTANTS 1407PETERMANDRIVE ALEXANDRIA,LOUISIANA71301 MAILINGADRES P.O.Box12178 Alexandria.LA Telephone(318) Teleocpier(318) August2,197 NDEPENDENTAUDITORS'REPORTONCOMPLIANCEANDON INTERNALCONTROLOVERFINANCIALREPORTINGBASEDONAN AUDITOFINANCIALSTATEMENTSPERFORMEDINACORDANCE WITHGOVERNMENTAUr')ITINGSTANDARDS TheHonorableVicSmith,Mayor andmembersofthe;boardofaldermen Colfax.Louisiana Wehaveauditedthefinancialstatementsofthe"[ownofNewLlano,Louisianasofandfor theyearendedjune30,197,andhaveisuedoureporthereondatedaugust2,197. Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthe standardsaplicabletofinancialauditscontainedingovernmentauditingstandards,isued bythecomptrolergeneraloftheunitedstates. Compliance AspartofobtainingreasonableasuranceaboutwhethertheTownofNewLlano,Louisiana's financialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliance withcertainprovisionsoflaws,regulations,contractsandgrants,noncompliancewithwhich couldhaveadirectandmaterialefectonthedeterminationofinancialstatementamounts. However,providinganopiniononcompliancewiththoseprovisionswasnotanobjectiveofour auditand,acordingly,wedonotexpresuchanopinion.theresultsofourtestsdisclosed aninstanceofnoncompliancethatisrequiredtobereportedundergovernmentauditing Standardswhichisdescnbedintheacompanyingscheduleofindingsandquestionedcosts asitem97-1. ntemalcontroloverfinancialreortino Inplaningandperformingouraudit,weconsideredtheTownofNewLlano,Louisiana's internalcontroloverfinancialreportinginordertodetermineourauditingproceduresforthe purposeofexpresingouropiniononthefinancialstatementsandnetoprovideasuranceon theinternalcontroloverfinancialreporting.however,wenotedcertainmatersinvolvingthe internalcontroloverfinancialreportinganditsoperationthatweconsidertobereportable conditions.reportableconditionsinvolvematerscomingtouratentionrelatingtosignificant deficienciesinthedesignoroperationoftheinternalcontroloverfinancialreportingthat,inour judgment,couldadw.'rselyafecthetownofnewllano,louisiana'sabilitytorecord,proces, sumarizeandreportfinancialdataconsistentwiththeasertionsofmanagementinthe financialstatements. -Members- AmericanInstituteofCertifiedPublicAcountants.SocietyofLouisiana,CPAs 17-

19 "TheHonorabteVicSmith,Mayor August2,197 Page2 andtheboardofaldem~en Reportableconditionsaredescribedintheacompanyingscheduleofindingsandquestioned costsasitems97-2and97-3. Amaterialweaknesisaconditioninwhk,hthedesignoroperationofoneormoreofthe internalcontrolcomponentsdoesnotreducetoarelativelylowleveltheriskthatmistatement inamountsthatwouldbematerialinrelationtothefinancialstatementsbeingauditedmay ocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseof performingtheirasignedfunctions.ourconsiderationoftheinternalcontroloverfinancial reportingwouldnotnecesarilydisclosealmatersintheinternalcontrolthatmightbe reportableconditionsand,acordingly,wouldnotnecesarilydisclosealreportableconditions thatarealsoconsideredtobematerialweakneses.however,webelievenoneofthe reportableconditionsdescribedaboveisamaterialweaknes. Thisreportisintendedfortheinformationofmanagement.However,thisreportisamaterof publicrecordanditsdistributionisnotlimited. KAY/ 18-

20 SCHEDULEOFINDINGSANDQUESTIONEDCOST TOWNOFNEWLANO,LOUISIANA YearEndedJune30, Louisianastatuterequiresthathebudgetbesubmitedforpublicinspectionfiften (15)dayspriortoyearendandaprovedpriortothebeginingofthensuing fiscalyear.fortheyearendedjune30,196,theabovebudgetaryproceswas 97-2Inordertomaintaincontrolofixedasetsandtoserveasdocumentationfor notcompleteduntiljuly23,196. insurancepurposes,werecomendthataninventoryofthefixedasetsbe 97-3Asnotedintheprioryear,thecurentbilingprogramdoesnotproduceaged completedbyeachdepartment. acountsreceivablereports,transactionhistoriesorecordsofadjustmentsto individualacounts.rozier,haringtonandmckaydidnote;thathetownhas purchasedanewutilitybilingsystem,whichwebelievewiladequatelyadresthe aboveconoems.however,asofthedateofthisreport,thenewsystemhasnot beninstaled. -19.