DepreciationisprovidedintheEnterpriseFundinamounts. suficienttorelatethecostofthedepreciableasetsto

Transcription

1 TOWNOFMORINGSPORTLOUISIANA NotestoFinancialStatements June i.sumaryofsignificantacountingpolicies(continued): DepreciationisprovidedintheEnterpriseFundinamounts suficienttorelatethecostofthedepreciableasetsto operationsovertheirestimatedservicelivesonthestraight linebasis.thestimatedservicelivesbyasettypeareas folows: Water,sewer,andgasystem Equipment years TotalColumnsonCombinedStatements-Overview.Totalcolumns onthecombinedstatements-overviewarecaptioned(memorandum Only)toindicatethatheyarepresentedonlytofacilitate financialanalysis.datainthesecolumnsdonotpresent financialposition,resultsofoperations,orchangesin financialpositioninconformitywithgeneralyacepted acountingprinciples.neitherissuchdatacomparabletoa consolidation.interfundeliminationshavenotbenmadein 2.DEPOSITSWITHFINANCIALINSTITUTIONS: theagregationofthisdata. Understatelaw,theTownmayinvestinUnitedStatesbondsor treasurynotesandmaydeposititsfundsindemandeposits, interest-bearingdemanddeposits,moneymarketacounts,or timedepositswithstatebanksorganizedunderlouisianalaw andnationalbankshavingtheirprincipaloficesinlouisiana. AtJune30,196,thecaryingamountoftheTown'scash deposits(includinglong-termcertificatesofdeposit)was $403,318andthebankbalancewas$405,738.Thisdiferenceis duetotheoutstandingchecksatjune30,196. UnderStatelaw,thesedeposits(ortheresultingbank balances)mustbesecuredbyfederaldepositinsuranceorthe pledgeofsecuritiesownedbythefiscalagentbank.the marketvalueofthepledgedsecuritiesplusthefederaldeposit insurancemustataltimesequaltheamountondepositwith thefiscalagent.thesesecuritiesareheldinthenameofthe pledgingfiscalagentbankinaholdingorcustodialbankthat ismutualyaceptabletobothparties.depositsof$373,95 arefulyinsuredbyfederaldepositinsurance. (Continued) 12

2 MarshaO.Milican CERTIFIEDPUBLICACOUNTANT INDEPENDENTAUDITOR'SREPORTONSCHEDULEOF FEDERALFINANCIALASISTANCE TheHonorableJ.B.Nichols,Mayor andmembersoftheboardofaldermen TownofMoringsport,Louisiana IhaveauditedthegeneralpurposefinancialstatementsofTown ofmoringsport,louisiana,asofandfortheyearendedjune30, 196,andhaveisuedmyreporthereondatedSeptember3,196. Thesegeneralpurposefinancialstatementsaretheresponsibility oftownofmoringsport,louisiana,management.my responsibilityistoexpresanopiniononthesegeneralpurpose financialstatementsbasedonmyaudit. Iconductedmyauditinacordancewithgeneralyacepted auditingstandards,governmentauditingstandards,i ComptrolerGeneraloftheUnitedStates,andthepr OficeofManagementandBudgetCircularA-128,"Au suedbythe ovisionsof ditsofstae andlocalgovernments."thosestandardsandombcirculara-128 requirethatiplanandperformtheauditoobtainreasonable asuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatement.anauditincludesexamining, onatestbasis,evidencesuportingtheamountsandisclosures inthefinancialstatements.anauditalsoincludesasesing theacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralfinancialstatement plzesentation.ibelievethatmyauditprovidesareasonable basisformyopinion. Myaud thege Louisi financ analys financ subjec genera fairly genera itwascondu neralpurpos anatakenas ialasistan isandisno ialstatemen tedtothea 1purposefi presentedi 1purposefi tedforthepurposeoforminganopinionon financialstatementsoftownofmoringsport, awhole.theacompanyingscheduleofederal eispresentedforthepurposeofaditional arequiredpartofthegeneralpurpose s.theinformationinthatschedulehasben ditingproceduresapliedintheauditofthe ancialstatementsand,inmyopinion,is almaterialrespectsinrelationtothe ancialstatementstakenasawhole. CertifiedPublicAcountant September3,196 ;'54DALZEL~SHREVEPORT,LOUISIANA7104~(318) POLKSTRET~MANSFTELD,LOUISIANA71052,~(318)

3 ScheduleofCompensationPaid OFMORINGSPORT,LOUISI theyearendedjune30,196 MayorandTownAldermen oardofalderme J.B.Nichols,Mayor MaryElenGardner S.S.Searcy LeoDilahunty RobertLowry DouglasElder WinardPickering EdS.Lowry,Jr. Total 3, ,

4 TOWNOFMORINGSPORT~LOUISIANA NotestoFinancialStatements i0.retirementcomitments(continued): June A.MunicipalEmployes'RetirementSystem(Continued): Ten-yearhistoricaltrendinformationispresentedinthe194 MunicipalEmploye'sRetirementSystemComprehensiveAnual FinancialReport.Thisinformationisusefulinasesingthe plan'sacumulationofsuficientasetstopaybenefitsas 1.DEFICITBALANCES: theybecomedue. TheUtilityfundhasadeficitinretainedearningsof $153,089.TheTown,throughincreasedfesandreduced overheadandoperatingcosts,intendstoeliminatethisdeficit overaperiodoftime. 12.CAPITALPROJECTSFUND: TheTownwasawardeda$465,0 grantforsewerimprovementson expendituresunderthisgrantfor comunitydevelopmentblock were$368,589. July17,195.Revenueand theyearendedjune30,196, GrantreceivablefromthisgrantatJune30,196,was$51,

5 MarshaO.MiHican CER'[IFLEDPUBLICACOUN%a,NT INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEWITH FEDERALFINANCIALASISTANCEPROGRAMTRANSACTIONS SPECIFICREQUIREMENTSAPLICABLETOMAJOR TheHonorableJ.B.Nichols,Mayor TownofMoringsport,Louisiana andmembersoftheboardofaldermen IhaveauditedthegeneralpurposefinancialstatementsofTownof Moringsport,Louisiana,asofandfortheyearendedJune30, 196,andhaveisuedmyreportthereondatedSeptember3,196. IhavealsoauditedTownofMoringsport'scompliancewiththe requirementsgoverningtypesofservicesalowedorunalowedand eligibilitythatareaplicabletoitsmajorfederalfinancial asistanceprogramwhichisidentifiedinthescheduleoffederal FinancialAsistancefortheyearendedJune30,196.The managementoftownofmoringsport,louisiana,isresponsiblefor TownofMoringsport'scompliancewiththoserequirements.My responsibilityistoexpresanopiniononcompliancewiththose requirementsbasedonmyaudit. Iconductedmyauditofcompliancewiththoserequirementsin acordancewithgeneralyaceptedauditingstandards;government AuditinqStandards,isuedbytheComptrolerGeneraloftheUnited States;andOMBCircularA-128,"AuditsofStateandLocal Governments."ThosestandardsandOMBCircularA-128requirethat Iplanandperformtheaudittobtainreasonableasuranceabout whethermaterialnoncompliancewiththerequirementsreferedto aboveocured.anauditincludesexamining,onatestbasis, evidenceabouttownofmoringsport,louisiana'scompliancewith thoserequirements.ibelievemyauditprovidesareasonablebasis formyopinion. Inmyopinion,TownofMoringsport,Louisiana,complied,inal materialrespects,withtherequirementsgoverningtypesof servicesalowedorunalowedandeligibilitythatareaplicable toitsmajorfederalfinancialasistanceprogramfortheyear endedjune30,196. Thisreportisintendedfortheinformationofmanagement,the BoardofAldermen,andaplicablefederalandstatecognizant agencies.however,thisreportisamaterofpublicrecordand itsdistributionisnotlimited. CertifiedPublicAcountant September3, POLKSTRET~MANSFIELD,LOUISIANA71052~(318) DALZEL~SHREVEPORT,LOUISIANA7104~(318)

6 TOWNOFMORINGSPORTLOUISIANA NotestoFinancialStatements 10.RETIREMENTCOMITMENTS(Continued): June A.MunicipalEmployes'RetirementSystem(Continued): 2.ContributionsRequiredandMade: EmployesoftheTownarerequiredtopay9.25%oftheirtotal monthlyearnings.employercontributionsare6.75ofeachand everymember'searnings,excludingbonuses,overtimepay,or severancepay.totalcontributionstothisretirementsystem were$3,290fortheyearendedjune30,196.thetown'stotal payrolfortheyearendedjune30,196,was$74,245andthe Town'scontributionstotheaboveplanswerebasedonapayrol of$48, FundingStatusandProgres: Theamountofthetotalpensionbenefitobligationisbasedon astandardizedmeasurementestablishedbygasb-5that,with someexceptions,mustbeusedbyapublicretirementsystem. Thestandardizedmeasurementistheactuarialpresentvalueof creditedprojectedbenefits.thispensionvaluationmethod reflectsthepresentvalueofestimatedpensionbenefitsthat wilbepaidinfutureyearsasaresultofemployeservices performedtodate,andisadjustedforthefectsofprojected benefitobligationwasadoptedbythegasbtoenablereadersof salaryincreases.astandardizedmeasureofthepension concernbasis,asesprogresmadeinacumulatingsuficient asetstopaybenefitswhendue,andmakecomparisonsamong financialstatementstoasesthefundingstatusonagoing otherretirementsystemsandamongotheremployers. TotalunfundedpensionbenefitobligationoftheMunicipal EmployesRetirementSystemasofJune30,195,wasas Totalpensionbenefitobligations folows: Netasetsavailableforpensionbenefits$306,781,658 Unfundedpensionbenefitobligation $39,276, Themeasurementofthetotalpensionbenefitobligationis basedonanactuarialvaluationasofjune30,195.net asetsavailabletopaypensionbenefitswerevaluedasofthe samedate. (Continued) 17

7 TOWNOFMORINGSPORTLOUISIANA TableofContents June30,196 IndependentAuditor'sReport Exhibit Paqe FinancialStatements: 1-2 CombinedBalanceShet-AlFundTypesand CombinedStatementof AcountGroups andchangesinfund FundTypes Revenues,Expenditures, Balance-AlGovernmental StatementofRevenues,Expenses,andChangesin RetainedEarnings(Deficit)-Proprietary StatementofCashFlows-ProprietaryFund FundType 6 NotestoFinancialStatements Type SuplementalInformation: ScheduleofCompensation- IndependentAuditor'sReportonScheduleof MayorandTownAldermen 19 ScheduleofFederalFinancialAsistance FederalFinancialAsistance 20 IndependentAuditor'sReportonInternalControl 21 StructureBasedonanAuditofGeneralPurpose FinancialStatementsPerformedinAcordance IndependentAuditor'sReportonCompliance withgovernmentauditinastandards 2-24 BasedonanAuditoftheGeneralPurpose FinancialStatementsPerformedinAcordance withgovernmentaud~t~nastandards 25

8 TOWNOFMORINGSPORT.LOUISIANA NotestoFinancialStatements June30,196 9.GENERALFUND-FUNDBALANCESRESERVED: AtJune30,196,aportionofthefundbalanceintheGeneral Parksandrecreation-reservedfordevelopmentofparksand Fundwasreservedforthefolowingpurpose: recreation. Cemetery-reservedforperpetualcareoflotsinMemorial 10.RETIREMENTCOMITMENTS: GardensCemetery. A.MunicipalEmployes'RetirementSystem: AleligibleemployesoftheTownofMoringsportare i.plandescription participantsinthemunicipalemployesretirementsystemof Louisiana(PlanA).Alemployeswhoareworkingona regularlyscheduledbasisofatleast35hoursperwek,not participatingoreligibleformembershipinanotherpublic fundedretirementsystemandwhoareunderage60atdateof employmentareeligibletoparticipate.theplanprovides retirementbenefits,survivor'sbenefits,anddisability benefits.amembermayretireatage5with25yearsormore ofcreditableservice.benefitsvestafteri0yearsof service.themonthlyamountoftheretirementalowanceshal consistofanamountequalto1%ofthemember'sfinal compensationmultipliedbyhisyearsofcreditableservice. Retirementprovisionsincludesurvivor'sbenefitsand disabilitybenefits.foranymemberwhoiseligiblefornormal retirementatimeofdeath,thesurvivingspouseshalreceive disabilityretirement.uponretirementcausedbydisability, benefitsforthedurationofhis/herlife.membersmusthave atleasti0yearsofcreditableservicetobeeligiblefor disabilitybenefitwhichshalconsistofanamountequalto1% amembershalreceiveanormalretirementalowanceif eligibletherefor.ifheisnoteligible,heshalreceivea ofthemember'sfinalcompensationmultipliedbyhisyearsof creditableserviceprojectedtohisearliestnormalretirement agenotoexced30%ofhisfinalcompensation. (Continued) 16

9 TOWNOFMORINGSPORToLOUISIANA NotestoFinancialStatements June LONG-TERMDEBT: Thefolowing Moringsport,isasumaryof Louisiana,for Balance,Julyi,194 Bondsretired bondtransactionsofthetownof theyearendedjune30,196: General Revenue Obligation Bonds Total $29,519$304,752$34,271 _(3,734)(5,698)(9,432) BondsPayable,June30, 195 ~25,785$29,054$324,839 BondspayableatJune30,196,arecomprisedofthefolowing individualisues: GeneralObligationBonds: BondsisuedMay27,1982,intheamountof $60,0,dueinanualinstalmentsof$5,13 beginingmay27,1985throughtheyear202; interestat5%ontheunpaidbalance. RevenueBonds: serialbondsisuedmay27,1982,dueinanual instalmentsof$20,81throughmay20,202, interestat5%ontheunpaidbalance. Theanualrequirementstoamortizealdebtoutstandingasof June30,196,includinginterestpaymentsof$247,045areas folows:year Ending June General Obligation $5,13 5,13 5,13 5,13 5,13 5,13 Revenue Bonds Total (Continued) 15

10 TOWNOFMORINGSPORT~LOUISIANA NotestoFinancialStatements June30,196 2.DEPOSITSWITHFINANCIALINSTITUTIONS(Continued): Depositsof$31,743arecolateralizedwithsecuritieswith heldinthenameofthepledginginstitutionandare categorizedbelowtogiveanindicationofthelevelofcredit risk: Category1 Balance Bank Depositsinsuredorcolateralizedwith securitiesheldbythetownorbyitsagent Category2 inthetown'sname. $- Depositscolateralizedwithsecuritiesheld bypledgingfinancialinstitution'strust Category3 departmentoragentinthetown'sname. Deposltsthatareuncolatera anybankbalancethatiscol securitiesheldbythepledgi luding institution,orbyitstrust agent,butnotinthetown's alor with 31,743 3.ADVALOREMTAXES: 31,743 AdValoremtaxesatachasanenforceablelienonpropertyas ofjanuaryi,eachyear.taxesareleviedbythetownand biledtothetaxpayersinseptember,andbecomedelinquenton Januaryi,ofthefolowingyear.RevenuesfromAdValorem taxesarebudgetedintheyearbiled.thetownbilsand colectsitsownpropertytaxesusingtheasesedvalues determinedbythetaxasesorofcadoparish.fortheyear endedjune30,196,taxesof16.2milswereleviedon propertywithasesedvaluationstotaling$1,089,850andwas dedicatedasfolows: DebtService GeneralOperatingPurposes 10.71Mils 5.51 Totaltaxesleviedwere$17,67.Altaxesasesedwere 4.RECEIVABLEFROMOTHERGOVERNMENTS-GENERALFUND colected. ReceivablefromothergovernmentsintheGeneralFund representsamountduefortobacotax,andisfuly colectible. (Continued) 13

11 TOWNOFMORINGSPORT.LOUISIANA NotestoFinancialStatements June30,196 i.sumaryofsignificantacountingpolicies(continued): BadDebts.Uncolectibleamountsdueforadvaloremtaxesare recognizedasbaddebtsthroughtheestablishmentofan alowanceacountathetimeinformationbecomesavailable whichwouldindicatetheuncolectibilityoftheparticular receivable.amountsduefromutilitycustomersareconsidered tobefulycolectible. pr_[p/~erty,plant,andequipment.theacountingandreporting treatmentapliedtothefixedasetsandlong-termliabilities asociatedwithafundaredeterminedbyitsmeasurementfocus. Algovernmentalfundsareacountedforonaspendingor "financialflow"measurementfocus.thismeansthatonly curentasetsandcurentliabilitiesaregeneralyincluded intheirbalanceshets.theirreportedfundbalance(net curentasets)isconsideredameasureof"availablespendable resources".governmentalfundoperatingstatementspresent increases(revenuesandotherfinancingsources)anddecreases Acordingly,theyaresaidtopresentasumaryofsourcesand usesof"availablespendableresources"duringaperiod. (expendituresandotherfinancinguses)inetcurentasets. Property,plant,andequipmentusedingovernmentalfundtype organizations(generalfixedasets)areacountedforinthe GeneralFixedAsetsAcountGroup,andarerecordedas expendituresinthegovernmentalfundtypeswhenpurchased. Publicdomain"infrastructure"generalfixedasetsconsisting ofcertainimprovementsotherthanbuildings,includingroads, bridges,curbsandguters,stretsandsidewalks,drainage systems,andlightingsystems,arenotcapitalizedalongwith othergenera]fixedasets.nodepreciationhasbenprovided ongeneralfixedasets. Alproperty,plant,andequipmentarestatedathistorical cost,orestimatedcostifactualhistoricalcostisnot available.donatedfixedasetsarestatedattheirestimated fairvalueonthedatedonated. Theacountgroupisnotafund.Itisconcernedonlywiththe measurementofinancialposit~onandisnotinvolvedwiththe measurementofresultsofoperations. Alproprietaryfundsareacountedforonacostofservices or"capitalmaintenance"measurementfocusandalasetsand aliabilities(whethercurentornoncurent)asociatedwith theiractivityareincludedontheirbalanceshets. (Continued) i

12 NotestoFinancialStatements I S June30,196 I.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued): BudqetsandBudgetaryAcounti proceduresinestablishingthe thesefinancialstatements: g.thetownfolowsthese budgetarydatareflectedin PriortoJulyi,theMayorsubmitstotheBoardofAldermena proposedbudgetfortheensuingfiscalyear.theoperating budgetincludesproposedexpendituresandthemeansof financingthem. PublichearingsareconductedattheTownHaltoobtain taxpayercoments. Thebudgetislegalyenactedthroughpasageofaresolution. Budgetaryamendmentsinvolvingthetransferofundsfromone department,programorfunctiontoanotheroramendments involvingincreasesinexpendituresrequiretheaprovalofthe BoardofAldermen. Budgetsareadoptedonabasisconsistentwithgeneraly aceptedacountingprinciples(gap). Thebudgetisemployedasamanagementcontroldeviceduring theyearforthegeneralfund. monthsorlestobecashequivalents. CashandCashEquivalents.TheTown liquidebtinstrumentspurchasedwith considersalhighly amaturityofthre andtreasurybilsandarestatedatcostwhichaproximates market. Investments.Investmentsarelong-termcertificatesofdeposit (Continued) i0

13 TOWNOFMORINGSPORTLOUISIANA NotestoFinancialStatements June30,196 i.sumaryofsignificantacountingpolicies(continued): BasisofAcounting.Theacountingandfinancialreporting treatmentapliedtoafundisdeterminedbyitsmeasurement focus.algovernmentalfundsareacountedforusinga Alproprietaryfundsareacountedforonaflowofeconomic curentfinancialresourcesmeasurementfocus. resourcesmeasurementfocus.withthismeasurementfocus,al asetsandliabilitiesasociatedwiththeoperationofthese fundsareincludedonthebalanceshet.fundequity(i.e., nettotalasets)issegregatedintocontributedcapitaland retainedearningscomponents.proprietaryfund-typeoperating statementspresentincreases(e.g.,revenuse)anddecreases Themodifiedacrualbasisofacountingisusedbyal (e.g.,expenses)innetotalasets. governmentalfundtypes.underthemodifiedacrualbasisof acounting,revenuesarerecognizedwhensusceptibletoacrual determined,and"available"meanscolectiblewithinthe (i.e.,whentheybecomebothmeasurableandavailable). curentperiodorsonenoughthereaftertobeusedtopay "Measurable"meanstheamountofthetransactioncanbe propertytaxesavailableiftheyarecolectedwithin60days afteryearend.aone-yearavailabilityperiodisusedfor liabilitiesforthecurentperiod.thegovernmentconsiders revenuerecognitionforalothergovernmentalfundrevenues. Expendituresarerecordedwhentherelatedfundliabilityis incured.principalandinterestongenerallong-termdebtare recordedasfundliabilitieswhendueorwhenamountshaveben acumulatedinthedebtservicefundforpaymentstobemade earlyinthefolowingyear. Thoserevenuessusceptibletoacrualarepropertytaxes, franchisetaxes,interestrevenueandchargesforservices. Fines,permits,andlicensesrevenuesarenotsusceptibleto acruaibecausegeneralytheyarenotmeasurableuntil receivedincash. Theacrualbasisofacountingisutilizedbytheproprietary fundtype.underthismethod,revenuesarerecordedwhen earnedandexpensesarerecordedathetimeliabilitiesare incured. (Continued)

14 TOWNOFMORINGSPORT.LOUISIANA NotestoFinancialStatements June30,196 TheTownofMoringsport,Louisianawasincorporatedin1934underthe provisionsofthelawrasonact.thetownoperatesunderamayor-boardof Aldermenformofgovernment. i.sumaryofsignificantacountingpolicies: Thefinancialstatementsofthe benpreparedinconformity principles(gap)asapliedto TownofMoringsport,Louisiana,have withgeneralyaceptedacounting Thefolowingisasumaryofthemoresignificantacountingpolicies: governmentunits. ReDortinoEntitv.Thesefinancialstatementsincludealfundsand acountgroupsoverwhichthetownexercisescontrol,authority, management,influenceoracountability.controlbyorinfluenceover bythetownwasdeterminedonthebasisofbudget,adoption,taxing authority,authoritytoisuedebt,electionorapointmentof governingbody,andothergeneraloversightresponsibility. FundAcounting.TheacountsoftheTownofMoringsport,Louisiana, areorganizedonthebasisofundsandacountgroupstoreportonits financialpositionandtheresultsofitsoperations.fundacounting isdesignedtodemonstratelegalcomplianceandtoaidfinancial managementbysegregatingtransactionsrelatedtocertaingovernment functionsoractivities. Afundisaseparateacountingentitywithaself-balancingsetof acounts.anacountgroup,ontheotherhand,isafinancial reportingdevicedesignedtoprovideacountabilityforcertainasets andliabilitiesthatarenotrecordedinthefundsbecausetheydonot directlyafectnetexpendableavailablefinancialresources. Fundsareclasifiedintotwocategories:governmentalandproprietary. Eachcategory,inturn,isdividedintoseparate"fundtypes". Governmentalfundsareusedtoacountforalormostofa government'sgeneralactivities,includingacquisitionorconstruction ofgeneralfixed-asets(capitalprojectfunds).thegeneralfundis usedtoacountforalactivitiesofthegeneralgovernmentnot acountedforinsomeotherfund.thedebtservicefundisusedto acountfortheacumulationofresourcesforandthepaymentof generallong-termdebtprincipal,interest,andrelatedcosts. Proprietaryfundsareusedtoacountforactivitiesimilartothose foundintheprivatesector,wherethedeterminationofnetincomeis necesaryorusefultosoundfinancialadministration.godsor servicesfromsuchactivitiescanbeprovidedeithertoutsideparties thegovernment(internalservicefunds). ([enterprisefunds)ortotherdepartmentsoragenciesprimarilywithin (Continued)

15 .r~u ~4Jm~ ~x 21

16 Mm~haO.Milican CERTIFIEDPUBLICACOUN~ WITHTHEGENERALREQUIREMENTSAPLICABLETO INDEPENDENTAUDITOR'SREPORTONCOMPLIANCE FEDERALFINANCIALASISTANCEPROGRAMS TheHonorableJ.B.Nichols,Mayor TownofMoringsport,Louisiana andmembersoftheboardofa]dermen IhaveauditedthegeneralpurposefinancialstatementsofTownof Moeringsport,Louisiana,asofandfortheyearendedJune30, 196,andhaveisuedmyreporthereondatedSeptember3,196. IhaveapliedprocedurestotestTownofMoringsporțLouisiana's compliancewiththefolowingrequirementsaplicabletoits federalfinancialasistanceprograms,whichareidentifiedinthe scheduleoffederalfinancialasistance,fortheyearendedjune 30,196:politicalactivity,Davis-BaconAct,civilrightșcash management,federalfinancialreports,alowablecosts/cost principles,andadministrativerequirements. Myprocedureswerelimitedtotheaplicableproceduresdescribed intheoficeofmanagementandbudget's"compliancesuplementfor SingleAuditsofStateandLocalGovernments."Myprocedureswere substantialylesinscopethananaudit,theobjectiveofwhich istheexpresionofanopinionontownofmoringsporț Louisiana'scompliancewiththerequirementslistedinthe precedingparagraph.acordingly,idonotexpressuchan Withrespecttotheitemstested,theresultsofthoseprocedures opinion. respecttoitemsnotested,nothingcametomyatentionthat disclosednomaterialinstancesofnoncompliancewiththe requirementslistedinthesecondparagraphofthisreport.with causemetobelievethattownofmoringsport,louisiana,hadnot complied,inalmaterialrespects,withthoserequirementṣ Thisreportisintendedfortheinformationofmanagemențthe BoardofAldermen,andaplicablefederalandstatecognizant agencies~thisrestrictionisnotintendedtolimitthe isamaterofpublicrecord. CertifiedPublicAcountant September3, POLKSTRET~MANSFIELD,LOUISIANA71052~(318) DALZELt~SHREVEPORT,LOUISIANA7104~(318)

17 NotestoFinancialStatements OFMORINGS A June30,196 5.INTERFUNDRECEIVABLES,PAYABLES: GeneralFund Receivables Interfund DebtService EnterpriseFund $ 25, Interfund $ Payables Ii,035 25,81 1, RESTRICTEDASETS-PROPRIETARYFUNDTYPE: RestrictedasetswereaplicabletothefolowingatJune30, 196: Bondcontingency Bonddebtservice Bondsinkingacount Bondreserveacount Customers'deposits 7.FIXEDASETS: Asumaryofchangesingeneralfixedasetsfolows: Balance Julyi, Buildings 195AditionsDeletions Improvementsotherthan Equipment Land buildings $6,201$ Balance June30 30,71 $6, ,291 45,258 30,16 610,71 17,407 Totalgeneralfixedasets~_2~461$30,16$ 6~329,571 45,252 Asumaryofproprietaryfundtypeproperty,plant,and equipmentatjune30,196folows: Waterandsewersystem Equipment Land $1,290,946 15,265 Les:acumulateddepreciation Total 3,706 Netproperty,plant,andequipment (614,514) 1,309,917 (Continued) 14

18 I EXHIBIT4 RetainedEarnings(Deficit)-ProprietaryFundType StatementofRevenues,Expenses,andChangesin $120,359 Operatingexpenses: Totaloperatingrevenues 126,457 6,098 Costsofsalesandservices Administration 93,27 Depreciation Totaloperatingexpenses _38,149 3,091 Operating(los) _(8,060) 134,517 Otherfinancingsources: Totalnon-operatingrevenues(expenses) _(15,087) 1,082 _(14,05) Transfersfromotherfunds 7,578 Retainedearnings(deficit)-beglningofyear Net(los) _(138,602) (14,487) Retainedearnings(deficit)-endofyear ~(153,089) Seacompanyingnotestofinancialstatements.

19 Becauseofinherentlimitations erors,iregularities,or neverthelesocurandnotbe detected. instancesof inanyinternal noncompliancemay Also,projectionofanyevaluationofthestructuretofuture controlstructure, periodsissubjecttotheriskthatproceduresmaybecome inadequatebecauseofchangesinconditionsorthatthe efectivenesofthedesignandoperationofpoliciesand proceduresmaydeteriorate. Forthepurposeofthisreport,Ihaveclasifiedthesignificant internalcontrolstructurepoliciesandproceduresusedin administeringfederalfinancialasistanceprogramsinthe fo~lowingcategories: CashDisbursements CashReceipts Foraloftheinternalcontrolstructurecategorieslisted above,iobtainedanunderstandingofthedesignofrelevant policiesandproceduresandwhethertheyhavebenplacedin operation,andiasesedrisk. DuringtheyearendedJune30,196,TownofMoringsport, Louisiana,expended10%ofitstotalfederalfinancial asistanceunderamajorfederalfinancialasistanceprogram. Iperformedtestsofcontrols,asrequiredbyOMBCircularA-128, toevaluatetheefectivenesofthedesignandoperationof internalcontrolstructurepoliciesandproceduresthati consideredrelevanttopreventingordetectingmaterial noncompliancewithspecificrequirements,generalrequirements, andrequirementsgoverningclaimsforadvancesandreimbursements andamountsclaimedorusedformatchingthatareaplicableto theaforementionedtownofmoringsport,louisiana'smajor federalfinancialasistanceprogram,whichisidentifiedinthe ScheduleofFederalFinancialAsistance.Myprocedureswere lesinscopethanwouldbenecesarytorenderanopinionon theseinternalcontrolstructurepoliciesandprocedures. Acordingly,Idonotexpresuchanopinion. 27

20 StatementofCashFlows-ProprietaryFundType OFMORING I EXHIBIT5 Cashflowsfromoperatingactivities: Y 6 Cashreceivedfromcustomers Cashpaymentstosupliersandemployes Otheroperatingincome $19,250 (94,242) Netcashprovidedbyoperatingactivities 31,106 6,098 Caslhflowsfromnon-capitalfinancingactivities: Operatingtransfersinfromotherfunds 7,578 Caslhflowsfrominvestingactivities: Cashflowsfromcapitalandrelatedfinancingactivities: Interestreceivedoninvestments 1,082 Propertyandequipmentacquisitions Principalpaidonrevenuebondsandcertificates ofindebtednes (6,536) Interestpaidonrevenuebondsandcertificates ofindebtednes ~15,13) (5,698) Netcashusedbycapitalandrelatedfinancing Netincreaseincash activities (27,347) Cashandcashequivalents,JulyI,195(including 12,419 Cashandcashequivalents, $I01,256inrestrictedacounts) 145,972 Reconciliationofoperatingincometonetcash $105,15inrestrictedJune30,196(including acounts) providedbyoperatingactivities: Operating(los) Adjustmentstoreconcileoperatingincometonetcash providedbyoperatingactivities: $ 8,060) Depreciation Changesinasetsandliabilities: (Increase)induefromotherfunds Decreaseinotheracruedexpenses (Increase)inacountsreceivable 38,149 Increaseincustomerdeposits Netcashprovidedbyoperatingactivities Increaseinacountspayable 3,436 Seacompanyingnotestofinancialstatements.

21 MarshaO.Flilican CERIlFIEDPUBLICACOUNTA.N] IndependentAuditor'sReporton StructureBasedonanAuditof FinancialStatementsPerformed withgovernmentauditinq InternalControl GeneralPurpose inacordance Standards TheHonorableJ.B.Nichols,Mayor andmembersoftheboardofaldermen TheTownofMoringsport,Louisiana IhaveauditedthegeneralpurposefinancialstatementsofTownof Moringsport,Louisiana,asofandfortheyearendedJune30, 196,andhaveisuedmyreporthereondatedSeptember3,196. Iconductedmyauditinacordancewithgeneralyaceptedauditing standardsandgovernmentauditingstandards,isuedbythe ComptrolerGeneraloftheUnitedStates,andtheprovisionsof oficeofmanagementandbudgetcirculara-128,"auditsofstate andlocalgovernments."thosestandardsandombcirculara-128 requirethatiplanandperformtheaudittoobtainreasonable asuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatement. ThemanagementofTownofMoringsport,Louisiana,isresponsible forestablishingandmaintaininganinternalcontrolstructure.in fulfilingthisresponsibility,estimatesandjudgmentsby managementarerequiredtoasesthexpectedbenefitsandrelated costsofinternalcontrolstructurepoliciesandprocedures.the objectivesofaninternalcontrolstructurearetoprovide managementwithreasonable,butnotabsolute,asurancethatasets aresafeguardedagainstlosfromunauthorizeduseordisposition, andthatransactionsarexecutedinacordancewithmanagement's authorizationandrecordedproperlytopermithepreparationof financialstatementsinacordancewithgeneralyacepted acountingprinciples.becauseofinherentlimitationsinany internalcontrolstructure,erorsoriregularitiesmay neverthelesocurandnotbedetected.also,projectionofany ew~luationofthestructuretofutureperiodsissubjecttothe riskthatproceduresmaybecomeinadequatebecauseofchangesin conditionsorthathefectivenesofthedesignandoperationof policiesandproceduresmaydeteriorate. Inplaningandperformingmyauditofthegeneralpurpose financialstatementsoftownofmoringsport,louisianaforthe yearendedjune30,196,iobtainedanunderstandingofthe internalcontrolstructure.withrespecttotheinternalcontrol structure,iobtainedanunderstandingofthedesignofrelevant policiesandproceduresandwhethertheyhavebenplacedin operation,andiasesedcontrolriskinordertodeterminemy auditingproceduresforthepurposeofexpresingmyopiniononthe generalpurposefinancialstatementsandnotoprovideanopinion 754DALZEL~SHREVEPORT,LOUISIANA7104~(318) POLKSTRET~MANSFIELD,LOUISIANA71052"~(318)

22 TOWNOFMORINGSPORT,LOUISIANA EXHIBITZ ChangesinFundBalance-AlGovernmentalFundTypes CombinedStatementofRevenues,Expenditures,and YearEndedJune30196 Revenues GENERAL_PROJECTSSERVICE GOVERNMENTALFUNDTYPES CAPITAL DEBT (MEMORANDUM TOTALS Taxes Licensesandpermits Intergovernmental $ Chargesforservices Finesandpenalties 368,589 $5,434$ ONLY) 383,040 47,850 35,78 Miscelaneous Expenditures: Totalrevenues 15, r , , i Curent: Generalgovernment Publicsafety Debtservice: Strets i Sanitation Principalretirement Capitalprojects Interestandfiscal Totalexpenditures charges 3,734 Excesofrevenuesover ]564]5 3685u~89 1,39 3,734 1, ,] Othersources(uses): expenditures 786) 584( 202 Excesofrevenuesover Tra.nsferstotherfunds_~7,578) Fundbalance-begin~ng expendituresandother sources(uses) Fundbalance-endofyear 3rs0~939_s 8,364) _37,578) 584(7,780 ~!$ -93~68j~37,7~3 35, ,502 Seacompanyingnotestofinancialstatements.

23

24 ~J E~ o~ JA o~om ~o~ ~0~og o~~m

25 Myauditwasmadeforthepurposeoforminganopiniononthe generalpurposefinancialstatementstakenasawhole.the acompanyingfinancialinformationlistedassuplemental aditionalanalysisandisnotarequiredpartofthegeneral pu~cposefinancialstatementsoftownofmoringsport,louisiana. informationinthetableofcontentsispresentedforpurposesof Thisinformationhasbensubjectedtotheauditingprocedures apliedintheexaminationofthegeneralpurposefinancial respectsinrelationtothegeneralpurposefinancialstatements takenasawhole. statementsand,inmyopinion,isfairlystatedinalmaterial /nri,~ " CertifiedPublicAcountant September3,196

26 OWN0 TableofContents(Continued) S YearEndedJune30,19 IndependentAuditor'sReportontheInternalControl structureusedinadministeringfederal IndependentAuditor'sReportonCompliancewith FinancialAsistancePrograms thegeneralrequirementsaplicableto ~IndependentAuditor'sReportonCompliance FederalFinancialAsistancePrograms withspecificrequirementsaplicableto MajorFederalFinancialAsistanceProgram Transactions

27 Finding: Thesegregationofdutiesisinadequate Cause: toprovideefectiveinternalcontrol. Theconditionisduetoeconomicand Recomendation:Noactionisrecomended. spacelimitations. Amaterialweaknesisareportableconditioninwhichthedesign Response: Weconcurwiththefinding. oroperationofoneormoreoftheinternalcontrolstructure elementsdoesnotreducetoarelativelylowleveltheriskthat noncomplaincewithlawsandregulationsthatwouldbematerialto afederalfinancialasistanceprogrammayocurandnotbe detectedwithinatimelyperiodbyemployesinthenormalcourse ofperformingtheirasignedfunctions. Myconsiderationoftheinternalcontrolstructurepoliciesand proceduresusedinadministeringfederalfinancialasistancewould notnecesarilydisclosealmatersintheinternalcontrol structurethatmightbereportableconditionsand,acordingly, wouldnotnecesarilydisclosealreportableconditionsthatare alsoconsideredtobematerialweaknesesasdescribedabove. However,Ibelievethereportableconditiondescribedaboveisnot amaterialweaknes. Th~sreportisintendedfortheinformationofmanagement,the BoardofAldermen,andaplicablefederalandstatecognizant agencies.however,thisreportisamaterofpublicrecordand itsdistributionisnotlimited. CertifiedPublicAcountant September3,196 28

28 FlatshaO.Milican CERTIFIEDPUBLICACOUNr~ INDEPENDENTAUDITOR'SREPORTONTHEINTERNAL CONTROLSTRUCTUREUSEDINADMINISTERING FEDERALFINANCIALASISTANCEPROGRAMS TheHonorableJ.B.Nichols,Mayor TownofMoringsport,Louisiana andmembersoftheboardofaldermen IhaveauditedthegeneralpurposefinancialstatementsofTownof Moringsport,Louisiana,asofandfortheyearendedJune30, 196,andhaveisuedmyreporthereondatedSeptember3,196. Iconductedmyauditinacordancewithgeneralyaceptedauditing standards,governmentauditinqstandards,isuedbythecomptroler GeneraloftheUnitedStates;andoficeofManagementandBudget (OMB)circularA-128,"AuditsofStateandLocalGovernments." ThosestandardsandOMBCircularA-128requirethatIplanand performtheauditobtainreasonableasuranceaboutwhetherthe generalpurposefinancialstatementsarefreofmaterial mistatement. InplaningandperformingmyauditfortheyearendedJune30, proceduresforthepurposeofexpresingmyopiniononthegeneral 196,IconsideredtheinternalcontrolstructureofTownof Moringsport,Louisiana,inordertodeterminemyauditing purposefinancialstatementsoftownofmoringsport,louisiana, andtoreportontheinternalcontrolstructureinacordancewith OMBCircularA-128.Thisreportadresesmyconsiderationof internalcontrolstructurepoliciesandproceduresrelevantto policiesandproceduresrelevantomyauditofthegeneralpurpose compliancewithrequirementsaplicabletofederalfinancial asistanceprograms.ihaveadresedinternalcontrolstructure financialstatementsinaseparatereportdatedseptember3,196. ThemanagementofTownofMoringsport,Louisiana,isresponsible managementarerequiredtoasesthexpectedbenefitsandrelated forestablishingandmaintaininganinternalcontrolstructure.in fulfilingthisresponsibility,estimatesandjudgmentsby managementwithreasonable,butnotabsolute,asurancethatasets costsofinternalcontrolstructurepoliciesandprocedures.the aresafeguardedagainstlosfromunauthorizeduseordisposition, objectivesofaninternalcontrolstructurearetoprovide thattransactionsarexecutedinacordancewithmanagement's authorizationandrecordedproperlytopermitthepreparationof generalpurposefinancialstatementsinacordancewithgeneraly andregulations. aceptedacountingprinciples,andthatfederalfinancial asistanceprogramsaremanagedincompliancewithaplicablelaws 805POLKSTRET~MANSFIELD,LOUISIANA71052~(318) DALZEL~SHREVEPORT,LOUISIANA7104~(318)

29 MalshaO.lVlilLican CERTIFIEDPUBLICACOUNTANT IndependentAuditor'sReportonComplianceBased onanauditofthegeneralpurposefinancial StatementsPerformedinAcordanceWith GovernmentAuditinaStandards TheHonorableJ.B.Nichols,Mayor TownofMoringsport,Louisiana andmembersoftheboardofaldermen IhaveauditedthegeneralpurposefinancialstatementsofTownof Moringsport,Louisiana,asofandfortheyearendedJune30, 196,andhaveisuedmyreporthereondatedSeptember3,196. Iconductedmyauditinacordancewithgeneralyacepted standardsandgovernmentauditinqstandards,isuedauditing ComptrolerGeneraloftheUnitedStates,andtheprovisionsof OficeofManagementandBudgetCircularA-128,"AuditsofState bythe andlocalgovernments."thosestandardsandombcirculara-128 requirethatiplanandperformtheaudittoobtainreasonable asuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatement. Compliancewithlaws,regulations,contracts,andgrantsaplicable totownofmoringsport,louisiana,istheresponsibilityofthe managementoftownofmoringsport,louisiana.aspartof obtainingreasonableasuranceaboutwhetherthegeneralpurpose financialstatementsarefreofmaterialmistatement,iperformed testsofthetown'scompliancewithcertainprovisionsoflaws, regulations,contractsandgrants.however,theobjectiveofmy auditofthegeneralpurposefinancialstatementswasnotto provideanopiniononoveralcompliancewithsuchprovisions. Acordingly,Idonotexpressuchanopinion. Theresultsofmytestsdisclosedno thatarerequiredtobereported Standards. instancesofnoncompliance undergovernmentauditing Thisreportisintendedfortheinformationofmanagement,Boardof Aldermen,andtheLegislativeAuditorandshouldnotbeusedfor anyotherpurpose. CertifiedPublicAcountant September3, POLKsLqET~MANSFIELD,LOUISIANA71052~(318) DALZELQSHREVEPORT,LOUISIANA7104~(318)

30 Thisreportisintendedfortheinformationofmanagement,Boardof Aldermen,andLegislativeAuditorandshouldnotbeusedforany otherpurpose. CertifiedPublicAcountant September3,196 24

31 Inotedacertainmaterinvolvingtheinternalcontrolstructure anditsoperationthaticonsidertobeareportablecondition understandardsestablishedbytheamericaninstituteofcertified PublicAcountants.Reportableconditionsinvolvematerscoming tomyatentionrelatingtosignificantdeficienciesinthedesign oroperationoftheinternalcontrolstructurethat,inmy judgment,couldadverselyafecttownofmoringsport'sabilityto record,proces,sumarize,andreportfinancialdataconsistent witlhtheasertionsofmanagmentinthegeneralpurposefinancial statements. Finding: Cause: Thesegregationofdutiesisinadequateto providefectiveinternalcontrol. Theconditionisduetoeconomicandspace Recomendation:Noactionisrecomended. limitations. Management's Amaterialweaknesisareportableconditioninwhichthedesign Response: Weconcurwiththefinding. oroperationofoneormoreoftheinternalcontrolstructure elementsdoesnotreducetoarelativelylowleveltheriskthat erorsoriregularitiesinamountsthatwouldbematerialin relationtothegeneralpurposefinancialstatementsbeingaudited mayocurandnotbedetectedwithinatimelyperiodbyemployes inthenormalcourseofperformingtheirasignedfunctions. Myconsiderationoftheinternalcontrolstructurewouldnot necesarilydisclosealmatersintheinternalcontrolstructure thatmightbereportableconditionsand,acordingly,wouldnot necesarilydisclosealreportableconditionsthatarealso consideredtobematerialweaknesesasdefinedabove.however,i notedthefolowingreportableconditionthatibelievetobea materialweaknesasdefinedabove: Finding: Cause: Thesegregationofdutiesisinadequateto providefectiveinternalcontol. Theconditionisduetoeconomicandspace Recomendation:Noactionisrecomended. limitations. Management's response: Weconcurinthefinding. 23

32 lvlatshao.milican CE#TIFIEDPUBLICACOUN~,.NT INDEPENDEHTAUDITOR'SREPORT TheHonorableJ.B.Nichols,Mayor Moringsport,Louisiana andmembersoftheboardofaldermen statementsoftownofmoringsport,louisiana,asofandfortbe yearendedjune30,196,andfortheyearthenended.these Ihaveauditedtheacompanyinggeneralpurposefinancial generalpurposefinancialstatementsaretheresponsibilityof TownofMoringsport,Louisianamanagement.Myresponsibilityis toexpresanopiniononthesegeneralpurposefinancial statementsbasedonmyaudit. Iconductedmyauditinacordancewithgeneralyacepted auditingstandards,governmentauditinqstandards,isuedbythe ComptrolerGeneraloftheUnitedStates,andtheprovisionsof OficeofManagementandBudgetCircularA-128,"AuditsofState andlocalgovernments."thosestandardsrequirethatiplanand performtheaudittobtainreasonableasuranceaboutwhetherthe generalpurposefinancialstatementsarefreofmaterial mistatement.anauditincludesasesingtheacounting principlesusedandsignificantestimatesmadebymanagement,as welasevaluatingtheoveralgeneralpurposefinancialstatement presentation.ibelievethatmyauditprovidesareasonablebasis formyopinion. Inmyopinion,thegeneralpurposefinancialstatementsreferedto abovepresentfairly,inalmaterialrespects,thefinancial positionoftownofmoringsport,louisiana,asofjune30,196, andtheresultsofitsoperationsandcashflowsofitsproprietary fundtypefortheyearthenendedinconformitywithgeneraly aceptedacountingprinciples. InacordancewithGovernmentAuditinqStandards,Ihavealso isuedareportdatedseptember3,196,onmyconsiderationof TownofMoringsport,Louisiana,internalcontrolstructureanda reportdatedseptember3,196,onitscompliancewithlawsand regulations. 754DALZEL~SHREVEPO,qT,LOUISIANA7104~(318) POLKSTRET~MANSFIELD.LOUISIANA71052~(318)

33 FILECOPY OI~FICIAL DONOTSLPNDOUT (Xerox.e~.:~sary COpieSfromthis COpyandPLAC[ ~'~ACKmFl[I TOWNOFMORINGSPORT.LOUISIANA FinancialStatements June30196 jnclerprovisions.ofstatelaw,tilts reportisapublicdocument.a copyofthereporthasbensubmit. tedtothea~jdited,oreviewed, entityandotherapropri~{epublic oficials.thereporlisavailable1or publicinspectic~nathebaton RougeoficeoftheLegislativeAuditorand,wherea!,proF,riate,athe oficeoftheparishclerkofcourt ~'eleasedate_ 196 CertifiedPublicAcountant Shreveport,Louisiana MarshaO.Milican