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Transcription

1 V ILLA G E O F PIO N EER U nder pro~dsions of state law,tfns report is ~ pubiic do',-um ent. A copy oftf~e rup:;rih~:s been s;~bm itted lo th,~ ~:.'udi~c~d. or tevi~;w ed. o[;;cials. '.b.,:.'r~,;1!:-~~,,ei;,:m e for l)dblic ir:spsc:!ior~ ~t tit,-, B~ton Rc,u~c c~f[c:,~o;~:he [~Ci~-!.3tJve A['ditot and,v.,h',-'.r,:~appropriate,atthe ofice ofthe parish ~:lerk ofcourt, T,~e!ease Da te _.~ ~];_O_L/~ _

2 VILLAG E O F PIO N EER G eneralpurpose FinancialStatem ents W ith A ccountant'sc om pilation Report A nd A greed-u pon ProceduresR eport A sof and forthe Y ear Ended June 30,1999 W ith Supplem entalinform ation Schedules C O N T E N T S Statem ent Page N o A ccountant's C om pilation R eport 3 G eneralpurpose FinancialStatem ents Com bined Balance Sheet-A llfund Types and A ccountg roups A 5 G ovcrm nentalfund Type -G eneralfund Statem entof Revenues,Expenditures and C hanges in Fund Balances Statem entofrevenues,expenditures, and C hanges in Fund B alances-budget (Cash Basis)and Actual B 6 C 7 l','oprietary Fund Type -Sew erenterprise Fund Statem entof R evenues,expenses, and C hanges in Retained Earnings Statem entof Cash Flow s N otes 1o the FinancialStatem ents Supplem entalinform ation Schedules D 8 E 9 10 Schedule Page No Sum m ary Schedule of Prior Y ear Findings

3 VII.I.AG E O F PIO N EER C onlents,june 30,1999 C O N T E N T S (CONTD.) Supplem entalinform ation Schedules:(Core d.) Schedule Page N o Corrective A ction Plan forcurrentyear Findings Accounlant'sR eportoila pplying A greed-u pon Procedures LouisianaAttestation Questionnaire

4 C E I~T IF IE I) P U B L IC A C C O U N T A N T 369 )O NALDSO N }~.OAI) ~ C AI.IIO UN,L O UISIANA * T I~-I~EPHON E 3 l8/ A ccountant'sc om pilation R eport M A Y O R A N D BOA RD O F A LD ERM EN V II.IZ G E O F PIO N EER Pioneer.I.ouisiana I have com piled the accom panying generalpurpose financialstatem ents and supplem entalinform ation schedules,aslisted in the foregoing table of contents,of the V illage of Pioneeras of June 30,1999,and forthe yearthen ended,in accordance with standards established by Statements on Standardsfor A ccounting and Review Services issued by the A m erican Institute of Certified Public A ccountants. A com pilation islim ited to presenting in the form of financialstatem ents and schedules inform ation that is the representation of m anagem entof the V illage of Pioneer. I have not audited or reviewed the accom panying generalpurpose financialstatem ents and,accordingly,do notexpress an opinion or any olher form of assurance on them, In accordance w ith the Louisiana Govenlm entalauditguide and th e provisionsof state law,ihave issued a reportdated A ugust17,1999,on the resultsof m y agreed-upon procedures, fit a 4.-/ A ugust17,1999 M D,IBI~I( OF 1lIE AM ERICAN NSIITU1E OF C I;RIIFI]1)PU ll.ic ACCOtJN'IAN'rS t~ I~M II~R OF "I'lll Socilf g OF LOUISIANA ~IR'III:]EI) pi_i~i.ic A CCOUNTAN I'S

5 G EN E R A L PU R PO SE FIN A N C IA L STA TEM EN T S - 4-

6 V ILLAG E O F PIO N EER A LL FU N D TYPES A N D A CCOU N T G RO U P Statem en/a Com bined Balance Sheet,June 30,1999 A SSETS Cash Receivables(netofallowance fordoubtfulaccounts) M eterdeposits Sew ersystem plantand equipm ent (netof accumulated depreciation) B uildings and equipm ent TO TA L A SSETS LIA BILITIES A N D FUND EQUITY Liabilities: Accountspayable Payrolllaxes payable Custom erm eterdeposits TotalLiabilities PROPRIETARY GOVERN M ENTAL FUND TYPE - FUN D TYPE - SEW ER GENERAL ENTERPRISE FUND FUND $4,227 8, $ $1, $16, ,334 ACCOUNT G ROU P - G EN ERAL FIXED ASSETS $231,857 $ ,896 2,311 N O N E TOTAL (M EMORANDUM ONLY) $21,095 9, , $893,092 $2, ,257 4,207 Fund Equity: hw estm entin generalfixed assets Contributed capital(netof accum ulated depreciation o lfixed assets acquired w ith federalgrant) Retained earnings-unreserved Fund balance -unreserved - undesignated TotalFund Equity TO TA I~I3A ItlI3TIES AND FUND EQUITY 628,031 18, , , ,857 $231, , , , ,885 $12,878 $648,357 $231,857 $893,092 See accom panying notes and accountant's com pilation report ~ 5-

7 V ILLAG E O F PION EER G OV ERN M EN TA L FU N D TYPE -G EN ERA L FU N D Statem entb Statem entof Revenues,Expenditures and Changesin Fund Balances Forthe YearEnded June 30,1999 R EV EN UES Taxes -franchise O ccupationallicenses Insurance licenses lnlergovernm enla]: Federalgrant State funds U se of m oney and property -interestearnings O ther revenues Totalrevenues EX PEN D ITU RES G eneralgovernm ent-current: Personalservicesand related benefits O perating services M aterialsand supplies C apitaloutlay Tolalexpenditures EXCESS (Deficiency)OF REVENUES O V ER EX PEN D ITU RES O TItER FIN AN C IN G SO U R C ES Transfersfrom Sew er Enterprise Fund Sale of fixed assets Totalolher financing sources EX C ESS O F REV EN U ES AN D O TItER SO U R C ES O V ER EX PEN D ITU RES II'U N D BA LAN C ES A T BEG IN N IN G O F Y EA R FUN 1)IIALAN C ES A T EN D O F Y EAR $3, ,591 11,000 21, , ,070 28,623 1,025 20, (4,923) 10,735 5,166 15,901 10,978 4 $10,982 See accom panying notes and accoum ant's com pilation report -6-

8 V ILLA G E O F PIO N EER G O V ER N M EN TA L FU N D T Y PE -G EN ER A L FU N D Statem entc Statem entof Revenues,Expenditures, and C hanges in Fund Balances-Budget (Cash Basis)and Actual Forthe YearEnded June 30,1999 REVEN U ES Taxes-fi'anchise O ccupationallicenses Insurance licenses lntergovernm ental: Federalgrants Stale funds U se ofm oney and property -interestearnings O ther revenues Totalrevenues BUDG ET ACTUA l. VARIANCE FAVORABLE (UNFAVORABLF& $3,890 $3, ,145 11, ,000 15, ,940 45,253 11,000 15, ,840 (100) 45,162 (91) I~X PEN D ITU RES G eneralgovernm ent-current: Personalservices and related benefits O perating services M aterialsand supplies Capitaloutlay Totalexpenditures 8,462 28, ,155 58,259 7,516 28, ,155 57, (2]7) 729 EXCESS (Deficiency)OF REVENUES O V ER EX PEN I)ITU R ES 638 O TIIER FIN AN C IN G SO U R C ES Sale of fixed assets Transfer fi'om Sew er Enterprise Fund Tolalolberfinancing sources 5,166 3,225 8,391 5,166 3,225 8,391 N ON E EXCESS (Deficiency)OF REVENUES AND O TIlI~R SO U R C ES O V ER EX PEN D ITU RES C A SIt A T BEG IN N IN G O F Y E A R C A SI1A T EN D O F Y EA R (4,615) (3,977) 638 8,204 8,204 $3,589 $4,227 $638 See accom panying notes and accountant'scom pilation report - 7-

9 V ILLA G E O F PIO N EER PRO PRIETARY FU N D TYPE - SEW ER EN TERPRISE FU N D Statem enld Statem entof Revenues,Expenses, and C hanges in Retained Earnings Forthe Y earended June 30,1999 O PER ATIN G R EV EN U ES Sew er fees O therincom e Totaloperating revenues O PERATING EXPEN SES Salaries Payrolltaxes U tilities C ustom errefunds Repairs Legaland accounting Insurance Suppliesand chem icals B ank charges C ollection fees O lherdues and fees Lab fees Depreciation Totaloperating expenses O PER ATIN G LO SS NON-OPERATING REVENUES (EXPENSES) Interestincom e Transfersto G eneralfund Totalnon-operating revenues(expenses) NET INCOM E (Loss) Adjustmentfordepreciation on fixed assets acquired w ith federalgrant N ET D ECR EASE IN R ETA IN ED EA R N IN G S R ETA IN ED EA R N IN G S A T BEG IN N IN G O F Y EAR R ETA IN ED EA R N IN G S A T EN D O F Y EAR See accom panying notes and accountant's com pilation report $13, ,414 4, , , , , , (13,363) 116 (10,735) (10,619) (23,982) 14,549 (9,433) 27,448 $18,015-8-

10 VILLA GE OF PION EER PROPRIETA RY FU N D TYPE - SEW ER EN TERPRISE FU N D Statem ente Statem entof C ash Flow s For the YearEnded June 30,1999 CA SIt FLO W S FR O M O PER ATIN G A C TIV ITIES O perating Loss Adjustmentsto Reconcile Operating Lossto NetCash Provided (Used)by Operating Activities: D epreciation Increase in accountsreceivable Increase in custom erdeposits Increase in taxespayable Increase in accounts payable Totaladjustments N etcash provided by operating activities C A SIt FLO W S FR O M N O N C A PITA L FIN AN C IN G A C TIV ITIES Transferto G eneralfund C A SIt FLO W S FR O M IN VESTIN G A C TIV ITIES Interestearnings N ET D EC R EA SE IN C A SH C A SIt AT BEG IN N IN G O F PER IO D CA SI1 A T EN D O F PER IO D ($13,363 14,929 (39) ,317 1,954 (3,225) 116 (1,155) 18,023 $16,868 See accom panying notes and accountant's com pilation report

11 V ILLAG E OF PIO N EER N otes to the FinancialStatem ents A s of and forthe Y ear Ended June 30,1999 SU M M AR Y O F SIG N IFIC AN T A C C O U N TIN G PO LIC IES The V illage of Pioneerw asincorporated underthe provisionsof the Law rason A cton M ay 12, The village operatesundera M ayor-board of A lderm en form of governm ent. The m ayorand alderm en serve four-yearterm sw hich expire on D ecem ber31,2002. The m ayorand board of alderm en serve the village w ithoutbenefitof com pensation. The village hasthree part-tim e em ployeesand a chief of police. A. BA SIS O F PRESEN TATIO N The accom panying generalpurpose financialstatem entsof the V illage of Pioneer have been prepared in conform ity with generally accepted accounting principles(gaap) asapplied to governmentalunits.the GovernmentalAccounting StandardsBoard (GASB) isthe accepted standard-setting body for established governm entalaccounting and financial reporting principles. The preparation of financialstatem entsin conform ity w ith generally accepted accounting principles requires m anagem entto m ake estim ates and assum ptions thataffectcertain reported am ounts and disclosures. A ccordingly,actualresults could differ from those estim ates. B. R EPO R TIN G EN TITY A s the m unicipal governing authority, for reporting purposes, the V illage of Pioneerisconsidered a separate financialreporting entity. The financialreporting entity consists of(a)the primary government(the village),(b)organizations for which the primary govermnentisfinancially accountable,and (c)otherorganizationsforwhich the nature and significance of theirrelationship w ith the prim ary governm entare such that exclusion w ould cause the reporting entity's financialstatem ents to be m isleading or incom plete. GovernmentalAccounting StandardsBoard (GASB)StatementNo.14 established criteria fordeterm ining w hich com ponentunitsshould be considered partof the V illage of Pioneerforfinancialreporting purposes. The basic criterion for including a potential com ponentunitw ithin the reporting entity isfinancialaccountability. The G A SB hasset forth criteria to be considered in determ ining financial accountability. This criteria See accountant'scom pilation report - 10-

12 V ILLA G E O F PIO N EER Notesto the FinancialStatements(Continued) includes Appointing avoting majority ofan organization'sgoverning body and a The ability of the village to im pose its w illon that organization and/or The potentialfor the organization to provide specific financial benefits to or im pose specific financial burdenson the village. 2 O rganizations for w hich the village does not appoint a voting majority butare fiscally dependenton thevilage. 3 O rganizations for w hich the reporting entity financial statem ents w ould be m isleading if data of the organization is not included because of the nature or significance ofthe relationship. Based on the previous criteria, the village has determ ined that there are no com ponentunitsthatare partof the reporting entity. C. FUN D A C C O UN TIN G The village usesfundsand accountgroupsto reporton itsfinancialposition and the resultsofitsoperations. Fund accounting isdesigned to dem onstrate legalcom pliance and to aid financialm anagem entby segregating transactionsrelated to certain governm ent functions or activities. A fund is a separate accounting entity w ith a self-balancing setof accounts that com prises its assets, liabilities,fund equity,revenues,and expenditures. A n account group,on the otherhand,isa financialreporting device designed to provide accountability forcertain assetsand liabilities(generalfixed assetsand generallong-term debt)thatare notrecorded in Ihe funds because they do notdirectly affectnetexpendable available financialresources. Fundsare classified into three categories;governm ental,proprietary,and fidttciary. Each category,in turn,isdivided into separate fund types. The fund classificationsand See accountant's com pilalion report

13 V ILLAG E O F PIO N EER Notesto the FinancialStatements(Continued) a description of each existing fund type follow G overnm enta]funds: G overnm entalfunds are used to accountfor allor m ostof the village's general activities, including the collection and disbursem ent of specific or legally restricted m onies, the acquisition or construction of general fixed assets, and the servicing of generallong-term debt. G overnm entalfundsinclude: G eneralfund The G eneralfund is the generaloperating fund of the village. It accounts forallfinancialresources,exceptthose required to be accounted for in other funds. Proprietary Funds Proprietary funds are used to accountforactivities sim ilarto those found in the private sector,where the determ ination of netincom e is necessary or usefulto sound financialadm inistration. Proprietary fundsdiffer from governm entalfunds in thattheir focus ison incom e m easurem ent,which,togetherw ith die m aintenance of equity,isan im portantfinancialindicator. Proprietary funds include the Sew er Enterprise Fund w hich is used to accountfor the operations of the village's sew er system. The operations are financed and operated in a m annersim ilarto private businessenterprise,w here the intent ofthe village isthatthe cost(expenses,including depreciation)ofproviding service to the generalpublic on a continuing basis be financed or recovered prim arily through user charges. D. BA SIS O F A C C O U N TIN G The accounting and financialreporting treatm entapplied to a fund is determ ined by its m easurem entfocus. A llgovernm entalfunds are accounted for using a current financialresourcesm easurem entfocus. W ith thism easurem entfocus,only currentassets and currentliabilitiesgenerally are included on the balance sheet. O perating statem ents ofthese fundspresentincreases(i.e.,revenuesand otherfinancing sources)and decreases (i.e.,expendituresand otherfinancing uses)in netcurrentassets.the m odified accrual basisof accounting isused forreporting allgovernm entalfund types. The governm ental fundsuse the follow ing practices in recording revenues and expenditures: See accountant's com pilation report - 12-

14 V ILLAG E O F PIO N EER Notesto tile FinancialStatements(Continued) R evenues Franchise taxes and intergovernm entalrevenuesare recorded when the village isentitled to the funds. Interestincom e on bank deposits is recorded w hen the interesthas been earned and the am ountisdeterm inable. Substantially allotherrevenuesare recorded when they are received by the village. Based on the above criteria, franchise taxesand intergovernm ental revenueshave been treated assusceptible to accrual. Expenditures Expenditures are generally recognized under the m odified accrual basis of accounting w hen the related fund liability is incurred. O ther Financing Sources T ransfersbetw een funds w hich w illnotbe repaid and the proceeds from the sale of generalfixed assets are accounted for as other financing sources and are recorded w hen the underlying eventsoccur. The Sew er Enterprise Fund is accounted for on a flow of econom ic resources m easurem entfocusand a determ ination of netincom e and capitalm aintenance.w ith this m easurem entfocus,allassetsand allliabilitiesassociated w ith the operation of the fund are included on the balance sheet. The Sew erenterprise Fund usesthe accrualbasisof accounting. Revenuesare recognized when they are earned,and expensesare recognized w hen they are incurred. E. BU D G ET PR A C TIC ES A proposed budgetforthe G eneralfund,prepared on the cash basisof accounting, ispresented to the board of alderm en in June each year.the budgetthen islegally adopted by the board of alderm en and am ended during the year as necessary. Budgets are established and controled by the board attheobjectlevelofexpenditure. Appropriations See accountant's com pilation report - 13-

15 V ILI.AG E OF PIO N EER Notesto the FinancialStatements(Continued) lapse atyear-end and m ustbe reappropriated for the follow ing year to be expended Form albudgetary integration is notem ployed as a m anagem entcontroldevice during the year. Budgeted am ounts included in the accom panying financialstatem ents include the originaladopted budgetam ounts and subsequentam endm ents. Statem entc in the accom panying financialstatem entspresentscom parisonsof the legally adopted G eneralfund budgetw ith actualdata on the budgetary basis. Because accounting principlesapplied forpurposesofdeveloping data on a budgetary basisdiffer significantly from those used to presentfinancialstatem ents in conform ity w ith G A A P,a reconciliation of resultant basis, tim ing, and perspective differences in the excess (deficiency)ofrevenuesoverexpendituresforthe yearended June 30,1999 ispresented below : Excess(deficiency)ofrevenuesand othersourcesover expendituresasreported on StatementC (budgetbasis) Receivableadjustments lnterfund loan adjustment Accountsand payroltaxespayableadjustment Excessof revenuesand other sourcesoverexpendituresas ($3,977 6,788 7, reported on StatementB (GAAP basis) $10,978 C A SH Cash includesam ountsin interest-bearing dem and deposits. U nderstate law,the village m ay depositfunds ildem and deposits,interest-bearing dem and deposits,m oney m arketaccountsortim e depositsw ith state banksorganized underlouisiana law orany otherstate of the U nited States,orunderthe law sof the U nited States. G. FIX ED A SSETS Fixed assets of governm ental funds are recorded as expenditures at tile tim e purchased o1"constructed,and the related assetsare capitalized (reported)in the general fixed assetaccountgroup. Public dom ain or infrastructure generalfixed assets such as roads,sidew alks,bridges,and drainage system sare notcapitalized. N o depreciation has been provided on generalfixed assets.a llgeneralfixed assetsatjune 30,1999 are valued atactualcost. Sce accountant's com pilation report - 14-

16 V ILLA G E O F PIO N EER Notesto tilefinancialstatements(continued) The fixed assetsused in the proprietary fund type operationsare included on the balance sheetof the fund netof accum ulated depreciation. D epreciation of allexhaustible fixed assetsused by the proprietary fund type operationsischarged asan expense against operations. D epreciation iscom puted using the straight-line m ethod over the estim ated usefullives asfollow s: Sewersystem Equipm ent 50 years 10 years It. V A C A TIO N A N D SIC K LEAV E The village has only part-tim e em ployees. There is no vacation or sick leave granted;therefore,there is no liability forcom pensated absences. C O N TR IBU TED C A PITA L G rants,entitlem ents,or shared revenuesthatare restricted forthe acquisition or construction of capitalassetsare recorded ascontributed capital. Contributed capitalis am ortized based on the depreciation recognized on thatportion of the assets acquired from such coutributions. This depreciation is closed to the contributed capitalaccountand is reflected asan adjustmentto netincome. TO TA L C O LU M N O N TIlE C O M BIN ED STA TEM EN T The totalcolum n o lthe com bined statem entiscaptioned M em orandum O nly to indicate thatitispresented only to facilitate financialanalysis. D ata in this colum n does not present financial position nor results of operations in conform ity w ith generally accepted accounting principles. N either is such data com parable to a consolidation. lnterfnnd elim inationshave notbeen m ade in the aggregation of this data. 2. C A SIt AtJune 30,1999,the village hascash ilinterest-bearing demand deposits(book balances)totaling $21,095. These depositsare stated atcost,w hich approxim atesm arket. U nderstate law,these deposits, See accountant'scom pilation report - 15-

17 V ILLAG E O F PIO N EER Notesto the FinancialStatements(Continued) ortile resulting bank balances,nm stbe secured by federaldepositinsurance or the pledge of securities ow ned by the fiscalagentbank. D epositbalancesatjune 30,1999,are fully secured by federaldeposit insu rance. 3. R EC EIV A BLES The follow ing isa sum m ary of receivablesatjune 30,1999 G eneral Fund Sew er Enterprise Fund Total l:ranchise taxes lntergovernm entalrevenue -state funds Insurance licences A ccounts A llow ance fordoubtfulaccounts Total $640 6, ,104 N O N E $640 6, $1,327 2,431 (172) (172) $1,155 $9,606 The allowance fordoubtfulaccountsof$172 isan estimate ofthe June 1999 sewerfee billing that w illnotbe collected. 4. FIX ED ASSETS The follow ing presentschangesin generalfixed assetsforthe yearended 1une 30,1999 Buildings and im provem ents O therim provem ents O ffice equipm ent Equipm ent Total Balance at July 1,1998 B alance at A dditions Retirem ents June 30,1999 $24,800 88,740 5, ,026 $20,155 ($17,232) : $ ~$20,15 _~5 _ ($17,232) $24,800 88,740 5, ,949 A sunm aary of proprietary fund type property,plant,and equipm entatjune 30,1999,follow s See accountant's com pilation report - 16-

18 V ILI.A G E O F PIO N E ER Notesto the FinancialStatements(Continued) Basis A ccum ulated D epreciation N etbook V alue Sew er system Equipm ent $727,450 3,798 ($99,418) (1,496) $628,032 2,302 Total ($100,914) 5. PEN SIO N PLAN The em ployees of the village are m em bers of the SocialSecurity System. In addition to the em ployee contributionsw ithheld at7.65 percentof grosssalary,the village contributesan equalam ount to the SocialSecurity System. The village doesnotguarantee the benefitsgranted by the SocialSecurity System. 6. C O N TR IBU TED C A PITA L In 1988,the village received a granttotaling $727,450 from the United StatesDepartmentof llousing and U rban D evelopm entto finance the construction of the village sew er system. The grant am ount,show n as contributed capital on the balance sheet,is reduced each year by the am ount of depreciation expense recognized on fixed assets constructed oracquired w ith the grantfunds. A tjune 30,1999,accum ulated depreciation on these assets is$99, LITIG ATIO N,C LA IM S,A N D R ISK O F LO SS The village isnotinvolved in any pending orthreatened litigation,claim s,orassessm entsatjune 30,1999. The village m aintains com m ercialinsurance ~.o pro,jide protection against losses resulting fiom the dam age ordestruction of property or liability claim sagainstthe village. 8. Y EA R 2000 ISSU E The Year2000 Issue isthe resultof shortcom ingsin m any electronic data-processing system sand otherequipm entthatm ay adversely affectthe village's operations in the year 1999 and beyond. The village doesnotrely on com putersystem sin itsday to day operations.h ow ever,there isno assurance thatthe system sof othergovernm entalagenciesorcom panieson w hich the village reliesw illbe tim ely converted orthatany such failure to convertby a governm entalagency orother com pany w ould nothave an advcrse effectof Jthe village's operations. See accountant's com pilation report - 17

19 SU PPLEM EN TA L IN FO RM ATIO N SC H EDU LES See accountant's com pilation report - 18-

20 V ILLAG E O F PIO N EER SU PPLEM EN TA L IN FO RM A TIO N SCH ED U LE A s of and For the Y ear Ended June 30,1999 PR IO R YEAR FIN D IN G S The follow -up and corrective action taken on allprioryearfindingsispresented in the sum m ary schedule ofprioryearfindings(schedule 1). C U R R EN T YEA R FIN D IN G S The corrective action plan forcurrentyearfindingsispresented in Schedule 2 See accountant's com pilation report - 19-

21 V ILLAG E OF PIO N EER Schedule 1 Sum m ary Schedule of Prior Y ear Findings Forthe Y ear Ended June 30,1999 Reference N um ber Fiscal Y ear Finding Initially O ccurred D escription of Finding Corrective Action Taken Planned Corrective A ction There w ere no prioryearfindings See accountant's com pilation report -20-

22 V ILLA G E O F PIO N EER Schedule 2 Corrective A ction Plan ForCurrentY earfindings Forthe YearEnded June 30,1999 Reference N um ber D escription of Finding C orrective A ction Planned N am e of ContactPerson A nticipated Com pletion D ate A gendas for m eetings w illbe posted atthe A gendas for m eeting village hallatleast w ere notposted or 24 hourspriorto the Procedure 9 advertised, tim e of the m eeting. H arold Sandidge, M ayor Septem ber 1999 See accountant's com pilation report - 21-

23 IndependentA ccountant'sr eporton A pplying A greed-u pon Procedures The follow ing independentaccountant'sreporton applying agreed upon procedures is presented in com pliance w ith the requirem ents of the Louisiana Governm entalaudit Guide and file Louisiana Attestation Questionnaire,issued by the Society oflouisiana Certified Public Accountants and the Louisiana Legislative A uditor. -22-

24 C }~I~T II,'IE D ~*U IIL IC A C C O U N T A N T 369 ])O NALI)SO N R OAD ~ C ALllOUN,L O UISIANA T ELEPHO NIE.3 ] IndependentA ceounlant's R eport O n A pplying A greed-u pon Procedures M A YO R A N D BOA RD O F A LD ERM EN V IIJ.A G E O 17PIO N EER l'ioneer,l.ouisiana Ihave perform ed the procedures included in the Louisiana Governm entalauditguide and enum erated below,w hich were agreed to by the m anagem entof tle V illage of Pioneer and the Legislative Auditor, Stale of Louisiana,solely to assistthe users in evaluating m anagem ent'sassertionsaboutthe V illage of Pioneer'scom pliance w ith certain law sand regulationsduring the yearended June 30,1999,included in the accompanying Louisiana Attestation Questionnaire.Thisagreed-upon proceduresengagementwas perform ed in accordance w ith standards established by the A m erican Institute of C ertified Public A ccouutants. The sufficiency of these procedures is solely the responsibility of the specified usersof the report. Consequently,Im ake no representation regarding the sufficiency of the proceduresdescribed below eitherforthe purpose forwhich thisreporthasbeen requested orforany other purpose. Public Bid Law Selectallexpenditures m ade during the year form aterials and supplies exceeding $15,000,or public works exceeding $100,000, and determine whether such purchases were made in accordance with LSA-RS 38: (the public bid law). A review w asm ade of alldisbursem entsforthe year. There w asone disbursem entexceeding $15,000 forthe purchase offixed assets. Thisdisbursementwasmade in accordance with the public bid law. C ode of Elhicsfor Public O fficialsand Public Em ployees 2 O btain from m anagem ent a list of the im m ediate fam ily m em bers of each board m em ber as defined by LSA-P,S 42: (the code ofethics),and a listofoutside businessinterestsof allboard m em bers and em ployees,as w ellas their im m ediate fam ilies. The village provided a listof the im m ediate fam ily m em bersof the m ayor,two of the alderwom en - 23 M EMBER O1:1lIE AMERICAN INSIlIU1E OVCIRIII-II~D PUBLIC ACCOUNTAN]S ~,IEM BER OF "ltte SOCIETY OP LOUISIANA CI~R'IIFIED PUIH,IC A CCOIJN'IANTS

25 V illage ofpioneer IndependentAccountant'sReporton A pplying A greed-u pon Procedures June 30,1999 and alltile em ployees,asw ellasthe outside businessinterestsof these individuals. O ne of the alderwom en declined to provide a listing of herim m ediate fam ily m em bers;how ever,she stated thatthe village does notdo businessw ith any of her innnediate fam ily m em bers. O btain from m anagem enta listing of allem ployeespaid during the period underexam ination M anagem entprovided m e w ith the required list 4 D eterm ine w hetherany of the em ployees included in the listing obtained from m anagem entin procedure num ber 3 above w ere also included in the listing obtained from m anagem ent in procedure num ber2 above asim m ediate fam ily m em bers. Bndgellng O ne of tile em ployees included on the listof em ployeesprovided by m anagem entin agreed-upon procedure (3) was also included on the listing obtained from management in agreed-upon procedure (2)asan immediate family member, tlowever,the employee washired by the village prior to O btain a copy of the legally adopted budgetand allam endm ents M anagem entprovided m e w ith a copy of the originalbudgetand the finalam ended budgetforthe yearended June 30, Trace the budgetadoption and am endm entsto the m inute book l traced the adoption of the originalbudgetto the m inutes of a m eeting held June 1, traced the adoption of the finalam ended budgetto the m inutesof a m eeting held June 7, C om pare the revenues and expenditures of the finalbudgetto actualrevenues and expenditures to determ ine if actualrevenuesorexpendituresexceed budgeted am ountsby 5 % orm ore. l com pared the revenues and expenditures of the G eneralfund finalam ended budgetto actual revenuesand expenditures.budgeted revenuesexceeded actualrevenuesby lessthan 5%. Actual expenditures w ere less than budgeted expenditures. Accounting and R eporting 24-

26 V illage of Pioneer IndependentA ccountant'sreporton A pplying A greed-u pon Procedures June 30, R andom ly select6 disbursem entsm ade during the period under exam ination and (a) trace paym entsto supporting docum entation asto correctam ountand payee Iexam ined supporting docum entation forthe six selected disbursem entsand found thatthe paym entw as forthe properam ountand m ade to the correctpayee. (b) determ ine ifpaymentswere properly coded to the correctfund and generalledgeraccount The six selected disbursem entsw ere properly posted to the correctfund and generalledger account. (c) determ ine whetherpaymentsreceived approvalfrom properauthorities Inspection of docum entation supporting each of the six selected disbursem entsindicated approvalfrom the proper authorities. M eetings 9 Exam ine evidence indicating thatagendasfor m eetings recorded in the m inute book w ere posted oradvertised asrequired by LSA-RS 42:1-12 (the opening meetingslaw). The village w asunaw are of thisrequirem entand did notpostoradvertise the agenda form eetings atleast24 hours before the tim e of the m eeting. I)eb 10. Exam ine bank depositsforthe period underexam ination and determ ine w hetherany such deposits appear to be proceeds of bank loans,bonds,or like indebtedness. Ireviewed alldepositslipsforthe period underexam ination and noted no depositsthatappeared to be proceeds of bank loans,bonds,or like indebtedness. A dvances and Bonuses Exam ine payrollrecordsand m inutesforthe yearto determ ine w hetherany paym entshave been m ade to em ployees w hich m ay constitute bonuses,advances,or gifts.

27 V illage of Pioneer IndependentA ccountant'sreporton A pplying A greed-u pon Procedures June 30,1999 A reading of the m inutesof the board m eetingsand an exam ination of payrollrecords indicated no paym entsw hich m ay constitute bonuses,advances,orgifts. 1was notengaged to,and did not,perform an examination,the objective ofwhich would be the expression of an opinion on m anagem ent'sassertions. Accordingly,Ido notexpresssuch an opinion.!lad 1perform ed additionalprocedures,otherm attersm ighthave com e to m y attention thatw ould have been reported to you. This reportis intended solely forthe use of m anagem entof the V illage of Pioneer and the Legislative A uditor,state of Louisiana,and should notbe used by those who have notagreed to the proceduresand taken responsibility forthe sufficiency of the proceduresfortheirpurposes. H ow ever,thisreportisa m atterof public record and itsdistribution is notlim ited..,o~ J A ugust17,

28 Louisiana Attestation Questionnaire Tileaccompanying Louisiana A testation Questionnairehasbeen completed by managementand s included in tt~is reportas required by the Louisiana G overnm entala uditg uide. 27

29 M.C arleen D um as Certified Public A ccountant 369 D onaldson Rd. C alhoun,la In connection w ith yourcom pilation of our financialstatem ents of the V illage of Pioneer of June 30, 1999 and for the year then ended,and as required by Louisiana Revised Statute 24:513 and the Louisiana Governm entala uditgum e,w e m ake the follow ing representationsto you. W e acceptfull responsibility forourcom pliance w ith the follow ing law s and regulations and the internalcontrols over com pliance w ith such law s and regulations. W e have evaluated our com pliance w ith the follow ing law s and regulations prior to m aking these representations. l'hese representations are based on inform ation available to us asof June 30, 1999 PU IgLIC BI1)LAW Itistrue thatwe have com plied w ith the public bid law,lsa -RS Title 38:2212,and, where applicable,the regulationsof the D ivision of A dm inistration,state Purchasing O ffice. Yes[~ No[]N/A[] CO 1)E O F ETH ICS FO R PU BLIC O FFICIALS AN D PU BI,IC EM PI,O YEES 2 Itistrue thatno em ployees orofficialshave accepted anything of value,w hether in the form of a service,loan,or prom ise,from anyone thatw ould constitute a violation of I.SA -RS 42: YesJ~]No[]N/A[] Itistrue thatno m em berof the innnediate fam ily of any m em berof tim governing authority, or the chief executive of the goverm nentalentity,has been em ployed by the governm ental entity afterapril1,1980 undercircum stanceswhich w ould constitute a violation of LSA -RS 42:1119. Yes N/A [ ]

30 BU D G ETIN G 4 W e have com plied w ith tile state budgeting requirem entsof tile LocalG overnm entbudgeta ct (LSA-RS 39: )orthe budgetrequirementsoflsa-rs 39:43. Yes[~ "No[ ]N/A [] A C C O UN TIN G A N D R EPO R TIN G A llnon-exem ptgovernm entalrecordsare available asa public record and have been retained foratleastthree years,asrequired by LSA -RS 44:1,44:7,44:31,and 44:36. Yes[u'~ o[]n/a [] 6 W e have filed our annualfinancialstatem ents in accordance w ith LSA -RS 24:514,LSA -RS 33:463,and/orLSA -R S 39:92,asapplicable. Yes~-~ o[]n/a[] 7 W e have had ourfinancialstatem entsaudited orcom piled in accordance w ith LSA -RS 24:513 Yesl~ 'N o[ ] N/A [ ] M EETIN G S 8 W e have com plied w ith the provisionsof tile O pening M eetingslaw,lsa -RS 42:1-12 Yeslt~ o[]n/a[] I)E IIT 9. Itistrue thatwe have notincurred any indebtedness,otherthan creditfor90 daysorjessto m ake purchases in the ordinary course of adm inistration,norhave w e entered into any leasepurchase agreem ents,w ithoutthe approvalof the State Bond Com m ission,as provided by A rticle V II,Section 8 of the 1974 Louisiana Constitution,A rticle V I,Section 33 of the 1974 Louisiana C onstitution,and L SA -R S 39: YesIt/]"/N o [ ] N/A [ ] A D V A N C E S A N D BO N U SE S 10. It is true that w e have not advanced w ages or salaries to em ployees or paid bonuses in violation ofarticle V II,Section 14 of the 1974 Louisiana Constitution,LSA -RS 14:138,and A G opinion Yes[t/~ No[] N/A []

31 W e have disclosed to you allknown noncom pliance of the foregoing law sand regulations,aswellas any contradictionsto the foregoing representations. W e have m ade available to you docum entation relating to the foregoing law sand regulations. W e have provided you w ith any com m unications from regulatory agencies or other sources concerning any possible noncom pliance w ith the foregoing law s and regulations, including any com m unications received betw een the end of the period under exam ination and the issuance of this report. W e acknow ledge ourresponsibility to disclose to you any know n noncom pliance which m ay occursubsequentto the issuance of yourreport. M ayor v D ate