FortheFiscalYear July1,197-June30,198

Transcription

1 LINCOLNPARISHSCHOLBOARD Ruston,Louisiana COMPREtENSIVEANUALFINANCIALREPORT FortheFiscalYear July1,197-June30,198 DepartmentofBusines Preparedby JuanitaDuke,CPA BusinesManager

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3 LincolnParishScholBoard Ruston,Louisiana AsofandfortheYearEndedJune30,198 ComprehensiveAnualFinancialReport INTRODUCTORYSECTION Statement LeterofTransmital GFOACertificateofAchievementforExcelenceinFinancialReporting ASBOCertificateofExcelenceinFinancialReporting OrganizationChart ElectedOficials FINANCIAl.SECTION AdministrativeOficials INDEPENDENTAUDITORS'REPORT GENERAL-PURPOSEFINANCIALSTATEMENTS 1-2 CombinedBalanceShet-AlFundTypesandAcountGroups GOVERNMENTAl_,FUNDS: A 4-5 CombinedStatementofRevenues,Expenditures,andChanges CombinedStatementofRevenues,Expenditures,andChangesin infundbalances 6-7 PROPRIETARYFUNDS: FundBalances-Budget(GAPBasis)andActual 8-10 CombinedStatementofRevenues,Expenses CombinedStatementofCashFlows andchangesinretainedearnings(deficit) 12 1 NotestotheGeneraI-PurposeFinancialStatements Index Notes

4 LincolnParishScholBoard ComprehensiveAnualFinancialReport Ruston,Louisiana AsofandfortheYearEndedJune30,198 HNANCIAI.SECTION(Continued) Exhibit COMBININGANDINDIVIDUALFUNDANDACOUNTGROUP STATEMENTSANDSCHEDULES: GENERALFUND CombiningBalanceShet CombiningScheduleofRevenues,Expenditures, ScheduleofRevenues,Expenditures,andChangesin andchangesinfundbalances 4-45 FundBalance-Budget(GAPBasis)andActual: Genera]Acounts BondSurplusAcounts 1967SalesTaxAcounts SalesTaxAcounts 193SalesTaxAcounts SPECIALREVENUEFUNDS 193AdValoremTaxAcounts CombiningBalanceShet CombiningStatementofRevenues,Expenditures, andchangesinfundbalances (Continued)

5 LincolnParishScholBoard ComprehensiveAnualFinancialReport Ruston,Louisiana AsofandfortheYearEndedJune30,198 FINANCIALSECTION(Continued) Exhibit COMBININGANDINDIVIDUALFUNDANDACOUNTGROUP STATEMENTSANDSCHEDULES:(Continued) SPECIALREVENUEFUNDS:(Continued) StatementsofRevenues,Expenditures,andChangesin I:undBalance-Budget(GAPBasis)andActual: Title1 TitleV1 AdultEducation TileI ScholFodService ParishwideMaintenance F.ustonNo.1MaintenanceandOperations SimsboroNo.3MaintenanceandOperations DubachNo.5MaintenanceandOperations SpecialPrograms TitleIV(DnlgFre) DEBTSERVICEFUNDS CombiaingBalanceShet CombiningStatementofRevenues,Expenditures, andchangesinfundbalances 23 7 (Continued)

6 LincolnParishScholBoard ComprehensiveAnualFinancialReport Ruston,Louisiana AsofandfortheYearEndedJune30,198 FINANCIAl,SECTION(Continued) Exhibit COMBININGANDINDIVIDUALFUNDANDACOUNTGROUP STATEMENTSANDSCHEDULES:(Continued) INTERNALSERVICEFUNDS CombiningBalanceShet 79 CombiningStatementofRevenues,Expenses, 80 CombiningStatementofCashFlows andchangesinretainedearnings(deficit) 25 AGENCYFUNDS: ScholActivityAgencyFund 83 GENEP,ALFIXEDASETSACOUNTGROUP: ScheduleofChangesinDepositsDueOthers ScheduleofGeneralFixedAsets-BySource StatementofChangesinGeneralFixedAsets-ByFunction ScheduleofGeneralFixedAsels-ByFunction GENERALONG-TERMDEBTACOUNTGROUP GENERAL ScheduleofChangesinLong-TermDebt ScheduleofCompensationPaidBoardMembers (Continued)

7 LincolnParishScholBoard Ruston,Louisiana AsofandfortheYearEndedJune30,198 ComprehensiveAnualFinancialReport STATISTICALSECTION Table GeneralFundExpenditmes-ByFunction GeneralFundRevenue-BySource PropertyTax]),alesandLevies 98-9 PropertyTaxLeviesandColections AsesedandEstimatedActualValueofProperty 102 PropertyTaxMilageRates-AlOverlapingGovernments RatiofNetGeneralBondedDebtoAsesedValue ComputationofLegalDebtMargin andnetbondeddebtpercapita 108 ComputationofDirectandOverlapingDebt 109 RatiofAnualDebtServiceExpendituresforGeneralBonded lo DebtoTotalGeneralExpenditures PropeilyValue,ConstructionandBankDeposits J PrincipalAdValoremTaxpayers k MiscelaneousStatisticalData-TenLargestEmployers DemographicStatistics in 14 MiscelaneousStatisticalData n 15 o (Concluded)

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9 LINCOLNPARISHSCHOLBOARD RUSTON,LOUISIANA DAVIDWRIGHt 316/ "fAX318/ SOUTHFARiXA[RVILES~REI PR[SID[NT November5.198 Mr.DavidWright,President LincolnParishScholBoard Ruston.Louisiana andboardmembers GERALDW.COB,ED.D SUPERINTEND~NT TheComprehensiveAnualFinancialReportoftheLincolnParishScholBoard,hereinaftereferedtoasthe "ScholBoard,"fortilefiscalyearendedJune30,198,isherebytransmited.Responsibilityforbothtileacuracy ofthedata,andthecompletenesandfairnesofthepresentation,includingaldisclosures,restwiththebusines departmentofthescholboard.webelievethisreport,aspresented,isacurateinalmaterialaspects,andthatit ispresentedinamanerthatfairlysetsforththeresultsofoperationsandfinancialpositionofthescholboard. Further,aldisclosuresnecesarytoenablethereadertogainanadequateunderstandingofoursystem'sfinancial afairshavebenincluded.thisreportwaspreparedinacordancewithgeneralyaceptedacountingprinciples asestablishedbythegovernmentalacountingstandardsboard(gasb)ofthefinancialacountingfoundation. TheGovermnentalAcountingStandardsBoardisthestandard-setingbodyforestablishingovermocntal acountingandfinancialreportingstandards. ComprehensiveAnualFinancialReportSections TheComprehensiveAnualFinancialReportconsistsofthresections:theintroductorysection,thefinancialsection andtilestatisticalsection.theintroductorysectionincludesthisleteroftransmital,certificatesinfinancial reporting,principaloficialsandanorganizationchart.thefinancialsectionconsistsofbothgeneral-puq~ose financialstatements,whichpresentanoverviewandbroadperspectiveofthescholboardasawhole,andmore detailedcombiningandindividualfundfinancialstatements.thestatisticalsectionincludesdatapreparedfromboth acountingandnon-acountingsourcesforthepurposeofreflectingfinancialtrendsandfiscalcapacityoftileschol Board,aswelasothersocialandeconomiciuformation.Thedataispresentedforthepastenyears. ReportingEntity Forfinancialreportingpurposes,inconformitywiththeGovernmentalAcountingStandardsBoard(GASB) CodificationofGovcrmnentalAcountingandFinancialReportingStandards,Section210,definingthereporting entity,ibisreportincludesalfundsandacountgroupsofthescholboard. EconomicConditionandOutlok LincolnParishislocatedinthenorthcentralregionofthestateathecrosroadsofU.S.Highway167,interstate20 andu.s.highway80.itisituatedbetwenthecityofshreveportothewest,andthecityofmonroetotheast. Themainindustriesintheparishareducation,agricultureandwodproducts.LincolnParishasrepeatedly maintainedoneofthelowestunemploymentratesinthestate.thelocationandanexcelentqualityoflivingmakes LincolnParishver~atractivefornewresidentsandnewbusinesdevelopments.

10 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers EconomicConditionandOutlok LincolnParishisthehomeoft~voslateuniversities,LouisianaTchandGramblingState.Theseuiversilieshavea combinedenrolhnentofaproximately16,0andprovideaproximately2,250jobsintheparish.educationisthe primarymeansofemplo)~neniinlincolnparish. LincolnParishasbenexpcricocingsleadygro~lhinitsadvaloremtaxbaseaswelasastead)'gromhinsalestax overthepastseveralyears.tables1and2,below,depicthisgrowthoverthepastfive)'ears.these,inaditionto coutinualyhavingoneofthelowestunemploymentratesintheslate,arcgodindicatorsofthestableconomyin LincolnParish. Table2 AdValorem"r~xBase 140: {inmi1~ohe) SalesTaxColections t20 e014oo- Is,12i ~,! 1~931941~951~t97 24oS []PLdLh+~d+~'lx=b~VetueotProperty CilendltYwaT []Ll~o'nP.~h~olBolrdCol,.cloni Ig93'Pg941951~13619~7 C=lendirYeir Inrecent)vats,newmotels,achaiufimfitureretailer,andrestaurantshavemovedintotheparishandlocalbankshave constructednewfacilitiesforimprovedacestobreakingservices.wilameteindustrieshasrecentlycompleted constructionofanewengineredwodproductscomplexatsimsboromlincolnparish.thisplanthastarted productionandshouldemployupto90workersonceitreachesfulproductioncapacity.wilamcterecentlybegan construclionofanotherplantinsimsboroforthemanufacturingofparticleboard.constructionofanewaulomaled samnilatsimsborowasalsocompletedemploying30workers.aditionalrevenueswerealsogeneratedfromanew Ark-la-gaspipelinethatwaslaidthroughtheparish.Itisanticipatedthathiswilcontinueintothenext)'earasnew constructionisplanedforachaingrocer),retailertomoveintotheparishandanewrite-aidcpharmacy.recently, coustmclionwascompletedofanewasisted-livingcenternearchoudrantandconstruclionofanotherasisted-living centernorthofrustonisinprogres.inadition,thedevelopmentofseveralnewsubdivisionsinthenorthernpartof theparishisuowunderway.conslruclionisalsonearcompletioneranew50,0squarefolaviationbuildingal LouisianaTch.Itisactivitysuchasthisthatensuresfilestrengthandstead)'grox~lhofbusinesandindustr)'forthe fi)turcinlincolnparish.

11 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers MajorInitiatives Duringthe197-98year,theScholBoardcompletedtheconstructionandofanewschol,theLincolnSecondary AlteruativeSchol.ThisisaresultofamandatefromtheSlateDepartmentofEducationthatalscholdistrictsmust providestudentswithanalternativelearningenvironmentotheregularclasrom.theconstructionwaspartly fundedbyacoperativeendeavorbetwenthestatedepartmentofeducationandthescholboardandlocal districtfunds.constructionwascompletedandaproximately60studentswerenroledinfebruary198.the scholfacilitycanserveamaximumof10studentsandcurentlyhasastafofseventeachersandtwo administralors. Asecondphaseofthealternativescholwastheconstructionofavocationalworkshop.Thisworkshoprovides aplaceforhands-onlearningofvocationaltradeskils. K-3REadiu~Program TheK-3ReadingProgramisaprogram,again,mandatedbytheBoredofElementaryandSecondaryEducationand fundedthroughastategrant.thisprogramalowedlincolnparishtoprovidestafdevelopmentforeveryteacher, fi'omkindergartenthroughthirdgrade,forlearningalternativemethodsforteachingreadingskilstostudents. LincolnParishnowhasaproximately230teacherswhoareknowledgeableinusingtheseteachingmethods.This fundingalsoalowedforastafteachinginstructortobemployedtoprovideaditionalon-the-jobtrainingfor teachersinaplyingthesenewmethods.knowledgeandabilitytoaplytheseteachingmethodsareverymarketable qualitiesforourteacherstohave,andwearegratefultobeabletoprovidethetraining.folow-uptrainingfor teachersandthetrainingofnewteacherswilcontinueaslongasthefundsaremadeavailablefromlhestate. AgrowingalternativemethodofenhancingtheducationofstudentsinLincolnParishisthroughtheuseofthe computer.computerlearninglabshavealreadybencreatedatseveralscholsitesinthedistrict.in197-98,a30- stationcomputerlabwithlearuingsoftwarewasadedatalmaj.brownelementary.thiscomputerlabwasmade posiblebyfederalfundingreceivedthroughtheiasa,titleiprogram. TheconstructionoftwoportableclasromswascompletedatGlenviewElemEntarywhicharetobeusedforspecial educationclasroms.thesenewclasromswerenededinordertoprovideamoreidealsetingforteaching ~lemenlarvspecialeducationclasromsatglenviewelementaryscho specialeducationstudents.theconstructionoftheseclasromswasmadeposiblethroughfederalfundingfrom theideabflow-throughgrant. Transp0rlation TheScholBoardcurentlyoperateswith7scholbuses,63ofwhichareownedbytheBoard.TheScholBoard purchasedfourscholbusesinthe197-98scholyearandhascontractedtopurchase5morescholbusesinthe 198-9scholyear.Threscholbuseshavebendesignatedforscholactivityandsubstitutebususe.Overthe years,theboardhascontinuedtoupdatetheagingfletofbuses.in193-94theboardpurchasedeightenew scholbuses,in194-95ninebuses,in195-96elevenbuses,in196-97fivebuses,andin197-98fourbuses. Thenumberofcontract-ownedbusesdropedfrom19in196-97to16in Ithasbenthetrendthatmany contractdriverschosenotorepurchasenewbusesastheiroldbusesbecomenon-operational.

12 Mr.DavidWright,President LincolnParishScholBoard Ruston.Louisiana andboardmembers MajorInitiatives(Continued) Transportation(Continued) Therefore,thejobofsuplyingaditionalbusescontinuestobetransferedtothescholsystem.Thismeansthere areaditionalmaintenancecoststhatmustbeabsorbedbythescholsystemaswel. Technology Themajorfocusofseveralfundingsourcesforthescholsystemhasbentoprovide,orimprovetechnologyinour scholdistrictandtobringtechnologyintotheclasrom.in195-96amajorinitiativetoestablishlnteruetaces inalscholsandthecentraloficebegan.thisisaprojecthatwasacomplishedinfourphases. Phase 1Instalationofhubsandroutersineachscholandtheceutralofice, IPurchaseandinstalationofacomputerandserveratalocationateachschol,aud VActualconectionstothetelecomunicationlinesforon-lineacestothelntemet. Instalationofcategory-fivewiringineveryscholin"theparishandflaecentralofice, PhaseIwascompletedin195-96,andPhasesI1,IlandlVwerecompletedin Curentlyeveryscholhas centralizedacestotheinternet.in197-98thedistrictbeganphasevofthisprojectwhichentailswiring clasromsateachscholtothemaininteractserverateachscholsite,instalingcomputersinalclasroms,and makingconectionstothetelecomunicationlinesforon-lineacestothelnternet.athistime,aproximately fiftypercentofthewiringforalclasromsinthescholsystemiscomplete.in197-98aproximately140 computerswerepurchasedlhroughstateclasrom-basedtechnologyfundingandfederalfundingfiomleai~.n 20andCarlPerkins. Inadition,eachscholisintheprocesofsetingupschol-sitewebpagestobepublishedontheInternet.Sofar, thereareightscholsthathavepublisheawebsitesinaditiontothecentralofice.itisanticipatedtheremaining scholswilbepublishedinthenextyear. ScholPerformance AlscholsinLincolnParishareconsideredsucesfulschols.Basedonmostrecentestscores,LincolnParish studentsperformedbeterthan50%ofthenationforalstudentstakingtheiowatest,andisoneofthetwoschol districtsinthestatewhoperformedbeterthan50%ofthenationinalcoresubjects(reading,language,audmath). ThiswasthefirstyearofimplementingtheIOWATestinLouisianawhichwasmandatedbythestate;andthe performanceoflincolnparishstudentswasoutstanding.also,onaverage,lincolnparishstudentswhotokthe LEAPTestinthespringperformedabovethestate'saverageofalstudentstakingtheLEAPinLouisiana.Based onflesestatistics,overalstudentachievementinlincolnparishisamongsomeofthehighestinthestate. ']'hestatehasmandatednewscholacountabilitystandardsthatrankaschol'sperformancebasedonthe improvementofstudentachievementfromoneyeartothenext.inordertoimprovescholperformanceinlincoln Parish,theweakestareasineachscholaretargetedandimprovementsarefocusedintheseareas.Thebestmeaus toimprovestudentachievementisthroughresources.providingteachertraining,instructionalresourcesand clasromnmterialsaresentialinimprovingstudentachievement.theseresourcescanonlycomefi'omfunding foreducationthroughthestate,publicsuport,andthefectiveuseoftheseresourcesbytheadministratorsofthe scholsystem. IV

13 Mr.DavidWright,President LincolnParishScholBoard Ruslon,Louisiana andboardmenabers SingleAudit TheSingleAuditActAmendmentof196andU.S.OficeofManagementandBudgetCircularNo.A-13,"Audits ofstates,localgovernments,andnonprofitorganizations,"requireananualsingleauditofthescholboard. lufonationrelaledtothisingleauditincludesthescheduleofexpendituresofederalawards,findingsand recomendations,andauditors'reportsoninternalcontrolandcompliancewithaplicablelaws,regulatious,contracts andagrements.lincolnparishascontractedwithanindependentauditortoconductheanualaudit.our independentauditorperformedasingleauditfortheyearendedjune30,198,andhasisuedthesingleauditreport underaseparatebinder. InternalControl ThemanagementoftheScholBoardisresponsibleforestablishingandmaintainingasystemofinternalcontrol. Theobjectivesofasystemofinternalconlrolaretoprovidereasonable,butnotabsolute,asuranceflintBoardpolicy, administrativeandacountingprocedures,andgrantadministrationproceduresarefulyimplemeutedandarebeing adheredto.inadition,internalcontrolsaredesignedtoprovidereasonable,butnotabsolute,asuranceregarding: (l)thesafeguardingofasetsagainstlosfromunauthorizeduseordispositiouand(2)thereliabilityofinancial recordsforpreparingfinancialstatementsandmaintainingacountabilityforasets. Alinternalcontrolevaluationsocurwithintheaboveframework.WebelievetheScholBoard'sinternalcontrols adequatelysafeguardasetsandprovidereasonableasuranceofproperecordingofinancialtransactions.in adition,webelievethecoutrolsprovideadequateasurancethatfederalprogramsareproperlyadministeredand acountedfor. AcountingSystemandBudgetaryControl AnexplanationoftheScholBoard'sacountingandbudgetarypoliciesarecontainedinthenotestothefinancial statements.explainedindetailarethebasisofacounting,fudstructureandothersignificantinfounafionregarding acountingaudbudgetarypolicies.theobjectiveofthesebudgetarycontrolsistoensurecompliancewithlegal provisionsembodiedintheaunualapropriatedbudgetaprovedbythescholboard.activitiesofthegeneralfund andspecialrevenuefundsareincludedintheanualapropriatedbudget.thelevelofbudgetarycontrol(thatis, thelevelatwhichexpenditurescanotlegalyexcedtheapropriateamount)isestablishedbyfunctionwithinan individualfund.budgetcomparisonsaresubmitedperiodicalytotheboard.thebusinesdepaltmentmonitorsthe budgetandpresentsbudgetamendments,whendemednecesary,totheboardforaproval.albudgetamendments mustbepresentedtotheboardforaproval.

14 Mr.DavidWright,President andboardmembers LincolnParishSchol13oard Ruston.Louisiana FinancialCondition GeneralFundActivities Generalfundactivitiesaresuportedprimarilybylocaltaxes,minimumfoundationprogramfundingandstate entitlements.directfederalaidisnominalinthegeneralfund.generalfundrevenuesareasfolows: Source Local State Federal Amount $9,982,454 18,764, ,145 Percent oftotal ]ncieasc (l)eclcase) From $(623,576) ,348,25 ~53 28,727 Thegeneralfundrevenueincreaseof$1,753,376fromtheprioryearamountof$27,147,914isprimarilyduetothe folowing: Localsourcesdecreasedmainlyduetothecombinationofone-timeprocedsfromafirelosreceivedin of$1,293,0,audincreasesin197-98insalestaxrevenuesof$282,8,andadvaloremtax revenuesof$170,472. Staterevenuesincreasedmainlyduetoanincreaseinmiuimumfoundationprogramfundingof$1,31,8, andnewstatefundingprogramsforstatek-3readingof$26,264,stateclasrombasedtechnology/ Literacyof$29,642,andStateTeacherSupliesof$87,689. Federalsourcesincreaseduetoanincreaseinfederalgrantmoniesreceived. Generalfundexpendituresbyfunctionwereasfolows Function Instruction Studentservices Instructionalstafsuport Generaladministration Scholadministration Busineservices Plantservices Studentransportationservices Centralservices Fodservices Comunityserviceprogram Facilitiesacquisitionandconstruction Debtservice Vl Amount $19,24,940 1,061,378 1,428,968 56,941 1,898, ,231 1,382,148 1,701,07 47, ,707 7, ,297 84,08~ Percent oftotal Increase (Decrease) From197 $1,074,542 27, ,174 96, ,631 65, ,986 (38,98) (10,567) 46,842 2,590 (I,013,727) ( 1~

15 Mr.DavidWright,President andboardmembers LincolnParishScholBoard Ruston,Louisiana FinancialCondition(Continued) Generalfundexpendituresincreased$1,186,732fromtheprioryearamountof$27,284,959.Thisincreasewas primarilyduetothefolowing: Teacherandemployesalariesincreasedaproximately$916,0,excludingbenefits,duetotheteacherpay raisegivenbythestatein197-98andthestafingofthenewlincolnsecondaryalternativescholwith seventeachingpositions,twoadministrativepositions,andtwosuportstafpositionsduringtheyear. IncreaseinstategrantexpendituresreceivedfromnewstatefundingprogramsforStateK-3Readingof $26,264,StateClasromBasedTechnology/Literacyof$29,642,andStateTeacherSupliesof$87,689. Asaresultoftheaboveoveralincreaseinrevenuesoverexpenditures,thegeneralfundexperiencedanexcesfor the197-98yearof$429,59,therefore,creatinganunreservedfundbalanceinthegeneralfundof$3,714,908, whichisdeterminedtobeatanadequatelevel. Specialrevenuefimdsrevenuesof$5,39,081,including$1,465,326oflocalsources,$464,949ofstatesources,and $3,408,806ofederalsources,wererestrictedinuseforelevendesignatedactivities.Thescholfodservicefund acountsfor$2,198,479oftheserevenues.federaliasaprogramsacountfor$1,542,65oftheserevenues.local revenuesof$1,171,859aredesignatedforthemaintenauceandoperationofacilities,andequipmentacountedfor themajorityoftheremainingrevenues.otherevenuesprovideforinstructionalandrelatedservicestohandicaped children. Specialrevenuefundexpendituresbyfunctionareasfolows Function Instruction Iustructionalstafsuport Generaladmitfistration Plantservices Studentransportationservices Fodservices Facilitiesacquisitionandconstruction Amount $1,467, ,742 60,680 1,038, ,359 2,143,346 42,539 Percent oftotal Increase (Decrease) From197 $(12,957) (16,30) 5,105 9,15 (10,931) 64,684 (15~5fi!61) Thedecreaseof$62,845inspecialrevenuefundexpendituresfromtheprioryearamountof$5,278,971 duetoadecreaseinfederalsuportfortitleiservices. VI

16 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers FinancialCondition(Continued) DebtServiceAelivitie TheScholBoardhasfourdebtservicefunds.Threscholdistrictdebtservicefundsaremaintainingafund balancetomethenextensuingyears'principalandinterestrequirements.theprimarymeansofundingthesedebt servicepaymentsarethroughlocaladvaloremtaxes.thebondsofthesedistrictswilmaturethroughtheyear207. Theremainingdebtservicefundisforthepaymentofprincipalandinterestdueamalyontwocertificatesof indebtednes;themeansofundingthisdebtservicefundisthroughtheanualapropriationandtransferofunds fromtheiasatitleiprogram.thesecertificatesofindebtedneswilmaturethroughtheyear202. ProprietaryActivities TheScholBoardmaintainstwointerualservicefunds.Thegrouphealthinsuranceftmdwasestablishedin November1989toprovidegroupinsurancehealthcareandentalbenefitstoitsemployesandependents. Revenuesgeneratedbyemployepremiumsandemployercontributionsdecreased$81,57fi'om$3,953,89in196-97to$3,872,342in Thisismainlyduetoadecreasedlevelofclaimsactivityinthecurentyear.Medical claimsandrelatedadministrativecostsdecreased$47,761fi'om$3,865,151in196-97,to$3,817,390in Thegrouphealthiusuranefundexperiencedadeficitfundbalanceof$1,741forthe197-98year;thisisadecrease inthedeficitfromlastyear'sdeficitbalanceof$60,141.thescholboardwilcontinuetoeliminatethisdeficitin thensuingyear. TheScholBoardalsomaintainsaself-insuredworkers'compensationbenefitsfund.Thisfundprovidesa designatedsourceforpaymentofactualworkers'compensationbenefitclaimsofthescholboard'sactive employes.revenueswhichrepresentsemployercontributionsincreasedfrom$25,0in196-97,to$50,0in Workers'compensationclaimsdecreased$9,242from$70,796in196-97,to$61,54in This fundhadanendingfundbalanceof$54,675in197-98;thisisadecreasefromtheprior-yearbalanceof$65,46. FiduciaryActivilie.~s ThescholactivityfundistheonlyagencyfundoftheScholBoard.Thesefundsareheldbytheindividualschols ofthescholboardtosuportscholactivitiesuchasathleticsandotherstudentorganizations.forfiscalyear thisfiredhadaditionsof$1,452,296,andeductionsof$1,461,325,leavingabalanceof$318,462. VI

17 Mr.Da~'idWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers FinancialCondition(Continued) Thefolowingchartsprovideanoverviewofthesourcesofrevenuesandthexpendituresb) governmentalfundsc~mbinedforthe)'earendedjune30,198: ALGOVERNMENTALFUNDS PercentageatTotalRevenues($36,324,856) RevenueSources ExpendituresbyFunction PercentageoftotalExpondituret.($35,927,60) State CashManagement TheScholBoardexercisesanagresiveandsafeinvestmentprogram.During197-98,idlefundsweretemporarily investedincertificatesofdepositandgovernmentsecurities.injanuary195acashmanagementacountwasetup Thebankinvestedfundsdailyingovernmentsecuritiesandsoldthemonthefolowingday.Thisalowedthebalance infl~eacotn~lstoearnsignificantlyhigherinteresthanitwouldhaveinaregularinterest-bearingacount.investments arcsecuredbyfederaldepositinsurance,orwithsecuritiespledgedbythefinancialinstitution,andheldbyanaproved third-partycustodialbankinthenameofthefiscalagentbank.proceduresfolowedandsecuritiespledgedarein acordaucewiththestatutesofthestateoflouisiana. DebtAdministration TheScholBoardhasfourdebtservicefunds;RustonDistrictNo.I,SimsboroDistrictNo.3,ChoudrantDistrictNo. 6,andSeries195and198SinkingThethrescholdistricts'debtretirementisfundedbyadedicatedadvalorcm taxwhichisauthorizedforthematurityperiodofthedebt.milageratesareadjustedasrcqtfiredtometdebtservice requirements.theseries195and198sinkingdebtretirementarcbeingpaidbyfederaldolarsfundedthroughthe TitleIprogram.

18 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers DebtAdministration(Continued) Thesebondisuesareratedasfolows Mody'sInvestorsService RustonDistrictNo.1 SimsboroDistrictNo.3 RiskManagement ChoudrantDistrictNo.6 AaBaBa During197-98,fileScholBoardcontinuedtheworkers'compensationfundtoself-insureintheareaofemploye acidentsandinjury.thisriskmanagementprogramisuplementedbyatransferofundswhendemednecesary. Asapartofthiscomprehensiveplan,variousriskcontroltechniqueswhichincludemployeacidentprevention traininghavebenimplemented. TheScholBoardalsocontinuedtomaintainitself-insuredhealthandentalprogram,Thisprogramisfundedby employepremiumpaymentsandsuplementedbybenefitspaidfromthegeneralfundand1967salestaxacounts. Asacomprehensivepartofthisplanitisadministeredandmonitoredbyathird-partyadministratorwhoemploys variousriskcontrolmeasures. Thegrouphealthinsuranceinternalservicefundhadadeficitasaresultofuncontrolableincreasesinclaims expense.thisdeficitdecreasedfromtheprioryear'sdeficitof$60,141toadeficitof$1,741inthecurentyear,a 97%decrease.Increasesinpremiumsandcontributionsarexpectedtoeliminatethisdeficitinthe198-9fiscal year. IndependentAudit Statestatutesrequiresananualauditbyanindependentcertifiedpublicacountantforanygovernmentreceiving revenuesofatleast$3,50,0inoneyear.theacountingfirmofalen,grenandcompany,lp,waselected toconductheaudit.alfundsandacountgroupsoftheboardpresentedinthisreporthavebenauditedbyalen, GrenandCompany,LP.Theaudithasbencompletedandtheauditors'reportonthegeneral-purposefinancial statementsandtheacompanyingcombiningandindividualfundandacountgroupstatementsandschedulesare includedinthefinancialsectionofthisreport,inadition,theauditreportreferstothestatisticalsection,v,hich waspreparedbythebusinesdepartment,andourscholboardisolelyresponsibleforitscontent.

19 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers GFOACertificateofAchievemenl TheGovernmentFinanceOficersAsociationoftheUnitedStatesandCanada(GFOA)Certificate ofachievemantforexcelenceinfinancialreportingisaprestigiousnationalawardrecognizing confornlancewiththehigheststandardsforpreparationofstateandlocalcomprehensiveanual InordertobcawardedaCertificateofAchievement,agovermnentalunitmustpnblishaneasilyreadableandeficienl3 FinancialReports. organb,edcomprd~ensiveanualfinancialreport,whosecontentsconformtoprogramstandards.suchreportsmust satisfybothgeneralyaceptedacountingprinciplesandaplicablelegalrequirements. ACertificateofAchievementisvalidforaperiodofone3'earonly.TheScholBoardhasbenawardedthisCertificate ofachievementforthecomprehensiveanualfinancialreportforthe),earendedjune30,195andeach3'ear thereafter. ASBOCertificateofExcelence TheLincolnParishScholBoardhasreceivedtheAsociationofScholBusinesOficials, InternationalCertificateofExeleneinFinancialReportingforfiscal5'earendedJune30,195, ealdeachyearthereafter.tifsax~ardcertifiesthathecompreheusivcanualfinancialreportfor thefiscal.','earendedjune30,197,substantialyconformstotheprinciplesandstandardsof financialreportingasreconendedandadoptedbytheasoieationofscholbusinesoficials Theawardis~matedonlyafteranintensivereviex"ofinancialreportsbyanexpertpanelofcertifiedpublicacountants International. andpracticingscholbusinesoficials. WcbelicvcthatheComprehensiveAmlualFinancialReportforthefiscal)'earendedJune30,198.~hichwilbe subnftedtogfoaandasboforeview,continuestoconformtotheprinciplesandstandardsofeachorganization. Ackno'wledgments Itisourdesirethathisreportcontainthencesau,informationandatawhichwilprovideabeterunderstandiugof theoperationsofthescholsystem.itisfurtherhopedthathisreporthasbendesignedinamanertobeusedasan administrativetolandgeneralsourceofinformationsoastoenhanceouracountabilitytothepublic.

20 Mr.DavidWright,President LincolnParishScholBoard Ruston,Louisiana andboardmembers Wewouldliketotakethisoportunitytoexpresoursincereapreciationtothestafofthebusinesdepartment whosextraordinaryefortscontributedsignificantlyinmakingthisreportareality. Respectfulysubmited, Dr.GeraldW.Cob Superintendent JD/cd

21 Certificateof forexcelence Achievement infinancial Reporting Presentedto LincolnParishSchol Board,Louisiana ForitsComprehensiveAnual forthefiscalyearended FinancialReport ACertificateofAchievementforExcelenceinFinancial June30,197 ReportingispresentedbytheGovernmentFinanceOficers governmentunitsandpublicemployeretirement AsociationoftheUnitedStatesandCanadato systemswhosecomprehensiveanualfinancial reports(cafrs)achievethehighest standardsingovernmentacounting andfinancialreporting. X

22

23 LINCOLNPARISHSCHOLBOARD Ruston,Louisiana ORGANIZATIONCHART

24 LINCOLNPARISHSCHOLBOARD Ruston,Louisiana ELECTEDOFICIALS June30,198 Mr.DavidWright President Mr.WayneBarfield Vice-President Dr.MaryBeasley Mr.JamesR.Kesler Mr.AlenTuten Mr.RobertE.Shadoin Mr.GeorgeMack Ms.JoeE.Mitcham,Jr Mr.WiliamE.Abrahm Mr.CurtisDowling Mr.CalvinWilkerson Mr.OthaAnders XVI

25 LincolnParishScholBoard ADMINISTRATIVEOFICIALS RusIon,Louisiana June30,198 Dr.GeraldW.Cob Superimendent RonieSugs AsistantSuperintendent/Director,Acadcmic CharlesOwens Director,AuxiliaryPrograms Programs DanyBel Supervisor,ElementaryEducation BarbaraKirkland Supervisor,FederalPrograms Dr.CharlesScriber SharonThomas Supervisor,SecondaryEducation Supervisor,SpecialEducation WilieWashington BeltyWal Co-ordinatorofPupilApraisal AdministrativeSupervisor,TitleI SalieEvans Supervisor,Title1 JuanitaDuke,CPA JackieWhitlock Supervisor,TitleI BusinesManager BrendaTheodos Supervisor,ScholFodService HowardWhitlock Supervisor,Transportation/ChildWelfare& Atendance

26

27 TheC.PA. NeverUnden~U~~V~ ALEN,GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS P.O.Box FertandStretMonroe,LA Monroe,LA71201 Telephone:(318)38-42 Facsimile:(318)38~164 Website:alengtencpa.com BoardMembers LincolnParishScholBoard P,uston.Louisiana 285GrenAcresOficepark G.O.P.BuildingIl,Suite40 BosierCity,LA71 Telephone:(318)741~)205 Facsimile:(318)74%0207 INDEPENDENTAUDITORS'REPORT ErnestL.Alen,CPA (AProfesional AcountingCorp.) TimGren.CPA MargieWiIliamson,CPA WehaveauditedtheacompanyingGENERAL-PURPOSEFINANCIALSTATEMENTSofLincolnParishSchol Board,Ruston,Louisiana,asofandfortheyearendedJune30,198,aslistedintiletableofcontents.These general-purposefinancialstatementsaretheresponsibilityofthescholboard'smanagement.ouresponsibility istoexpresanopiniononthesegeneral-proposefinancialstatementsbasedonouraudit. Exceptasdiscusedinthefolowingparagraph,weconductedourauditinacordancewithgeneralyacepted auditingstaudardsandthestandardsaplicabletofinancialauditscontainedingoverumentauditingstaudards, isuedbythecomptrolergeneraloftheunitedstates.thosestandardsrequirethatweplanandperformtheaudit tobtainreasonableasuranceaboutwhetherthefinancialstatementsarefreofmaterialmistatement.anaudit includesexamining,ouatestbasis,evidencesuportingtileamountsaildisclosuresinthefinancialstatements.an auditalsoincludesasesingtheacountingprinciplesusedaudsignificantestimatesmadebyumnagement,aswel asevaluatingtheoveralfinaucialstatementpresentation.webelievethatourauditprovidesareasonablebasisfox GovermnentalAcountingStandardsBoardTechnicalBuletin98-1,DisclosuresaboutYear20Isues,requires disclosureofcertainmatersregardingtheyear20isue.thescholboardhasincludedsuchdisclosuresin Note20.Becauseofthenprecedentednatureoftheyear20isue,itsefectsandthesucesofrelated remediationefortswilnotbefulydeterminableuntiltheyear20andthereafter.acordingly,insuficientaudit evidencexiststosuporthescholboard'sdisclosureswithrespectotheyear20isuemadeinnote20. Further,wedonotprovideasurancethatheScholBoardisorwilbeyear20readyțhatheScholBoard'syear 20remediationefortswilbesucesfulinwholeorinpart,orthatpartieswithwhichtheScholBoardoes busineswilbeyear20ready. Inouropinion,exceptforthefectsofsuchadjustments,ifany,asmighthavebendeterminedtobenecesaryhad webenabletoexaminevidenceregardingyear20disclosures,thegeneral-proposefinancialstatementsrefered abovepresentfairlyinalmaterialrespects,thefinancialpositionofthescholboard,asofjune30,198,andthe resultsofitsoperations,audthecashflowsofitsproprietaryfundtypesfortheyearthenended,inconfornfitywith generalyaceptedacountingprinciples. Member:Americ~InstituteofCertifiedPublicAcoUntants,S~ietyofLouisi~aCeglfiedPublicAco~tantsand Amerlc~I~titu~eofCertified/>0blicAcO~L~L~13ivl~ionforCPAFura~

28 BoardMembers LincolnParishScholBoard Ruston.Louisiana IlacordancewithGovernmentAuditingStandards,wehavealsoisuedoureport,underseparatecoverdated November5,198,onourconsiderationoftheScholBoard'sinternalcontroloverfinancialreportingandourtests ofitscompliancewithcertainprovisionsoflaws,regulations,contractsandgrants. Ourauditwasperformedforthepurposeoforminganopiniononthegeneral-purposefinancialstatementsofthe ScholBoard,takenasawhole.TheacompanyingCOMBININGANDINDIVIDUALFUNDANDACOUNT GROUPSTATEMENTSANDSCHEDULES,arepresentedforpurposesofaditionalanalysisandarenota requiredpartofthegeneral-purposefinancialstatements.suchinformationhasbensubjectedtotileauditing proceduresapliedintheauditofthegeneral-purposefinancialstatementsand,inouropinion,isfairlystated,inal materialrespects,inrelationtothegeneral-purposefinancialstatemeltstakenasawhole. Theinfonationidentifiedintiletableofcontentsastheintroductorysectionandstatisticalsectionispresentedfor puqlosesofaditionalanalysisandisnotarequiredpartofthegeneral-puwosefinancialstatementsoftileschol Board.Suchinformationhasnotbensubjectedtotheauditingproceduresapliedintheauditoftilegeneral-purpose financialstatementsandacordinglywexpresnopiniononit. Monroe,Louisiaua ALEN,GREN&COMPANY,LP November5,198

29

30 LINCOLNPARISHSCHOLBOARD ALFUNDTYPESANDACOUNTGROUPS Ruston,Louisiana CombinedBalanceShet June30,198 GENERALREVENUESERVICEiNTERNAL *GOVERNMENTALFUNDS *PROPRIETARY ASETSANDOTHERDEBITS FUND SPECIAL FUNDS DEBT FUNDS TYPE- Asets Cashandcashequivalents Investments Receivables 5,036, ,724$ 374,205$ Duefromotherfunds Deposits 921,49 752,253 Inventory 180, ,547 1,905,0 165,957$ Otherdebits Prepaiditems Land,buildingsandequipment 0 2,50 0 1,363 1,104 2g, ,615 Amountavailableindebtservicefund 7, , Amount1obeprovidedforpaymentofdebt TOTALASETSANDOTHERDEBITS ~;6,5125~1~364~714~;2,063~424 0 LIABILITIES,EQUITYANDOTHERCREDITS Liabilities: Acounts,salariesandotherpayables Duetotherfunds Depositsdueothers 2,290,878$0 Deferedrevenues Notespayable 0 181,734 89,862$ 0$ 239,474 18,207 Capitaleasespayable Compensatedabsencespayable Bondspayable Equityandothercredits TotalLiabilities Investmentsingeneralfixedasets $2,290,878~;289,803$ 0$239,474 Retainedearnings(deficit) FundBalances: Reservedforfutureclaims Reservedforinventory (1,741) 0 Reservedforprepaiditems Reservedforinstruction,repairs&construction Reservedforsalaryimprovements 482,78 7, ,02 Reservedfordebtservice 2,61 0 Totalequityandothercredits Unreservedandundesignatedfundbalance ,054, ,063,424 0 $4,20,347$1,074,91$2,083,424_.L 529~34 0 TOTALIABILITIES,EQUITYANDOTHERCREDITS~;,6,51,25~;1,364,714$2,063,424~;292,408 THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT 4

31 StatementA FIDUCIARY-GENERAL AGENCY FIXED ACOUNTGROUPS* FUND ASETS LONG~ERM GENERAL DEBT (MEMORANDUM TOTAL ONLY)_ 0$1,4, ,693,413 01,182, , ,462$0O ,209 2, ,262 0O ,732,311,732,31 318, ,620, , ,462 1,687,0 21,692 18, ,504, ,90 318,462}_ $10,934, ,37,079$ 00 0$38,37, (1,741) 20, ,78 7,262 O0 O0 O2,063,424 04,762,5 2,61 0~_38,37,079$ 0$45,78,695

32 LINCOLNPARISHSCHOLBOARD Ruston,Louisiana CombinedStatementofRevenues,Expenditures, ALGOVERNMENTALFUNDS FortheYearEndedJune30,1898 andchangesinfundbalances StatementB REVENUES GENERALREVENUE Localsources: FUND SPECIAL FUNDS SERVICE(MEMORANDUM FUNDS DEBT TOTAL ONLY) Taxes: Interestearnings Advalorem Fodservice Salesanduse 2,931,85$ 6, Statesources: Other Federalsources Equalization 350,267 38,320 1,09,806$ 35,017 5,12 0 1,967,973$0 5,909,64 45, ,460 6,361,980 Other 17,069,362 37, ,694,365 EXPENDITURES TotalRevenues 15,109_3,408, , ,406, ,82, ,290~; $2.084,485$36,324,856 3,563,915 Curent: Instruction: Regularprograms Suportservices: Specialprograms Otherinstructionalprograms 14,697,57$ 2, Studentservices Instructionalstafsuport Generaladministration 1, ,529$ Scholadministration 1,428,968 Busineservices 56,941 O 10,104O 05 14,750,086 4, Plantservices 1,898, , ,061,378 1,712,710 Fodservices Studentransportationservices 323,231 Comunityserviceprogram Centralservices 1,362,148 1,701,07 47,214 1, ,6800O 1, ,503 Facilitiesacquisitionandconstruction Debtservice: ,308 2,143, ,359O 2.420, , ,231 Principalretirement Interestandbankcharges 59,515 42,539 59, ,49,053 47, ,836 7,308 TotalExpenditures ,34, ,489 1,403,823 28,471,691:~5,216,126$2,239,783$35,927, EXCES(Deficiency)OFREVE-NUES OVEREXPENDITURES 429,59$12,95$(15,298)$397,256 (CONTINUED)

33 LINCOLNPARISHSCHOLBOARD ALGOVERNMENTALFUNDS Ruston,Louisiana CombinedStatementofRevenues,Expenditures FortheYearEndedJune30,198 andchangesinfundbalances StatementB GENERALREVENUE OTHERFINANCINGSOURCES(USES) FUND SPECIAL FUNDS SERVICE(MEMORANDUM FUNDS DEBT TOTAL ONLY) Operatingtransfersin Operatingtransfersout SaTeofasets Procedsfromloan (17,787) 17,78$ Procedsofrefundingbonds 10,0$ (98,519) Paymentorefundedbend 0 1,151 10, ,518$ O0 (216,306) ,0 1,151 TotalOtherFinancingSources(Uses) escrowagent $(9,9)$ O 2,632$198,518$101,151 0 (417,q~ (417,0) EXCES(Deficiency)OFREVENUESAND OTHERSOURCESOVEREXPENDITURES FUNDBALANCESATBEGININGOFYEAR ANDOTHERUSE'S $329,60$125,587$ 3,890, ,020~204 43,20$498,407 FUNDBALANCESATENDOFYEAR ~;4r20t347~;1r074T91~;2t063r424'~;7t358=682 6,860,275 (CONCLUDED) THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

34 LINCOLNPARISHSCHOLBOARD Ruston.Louisiana CombinedStatementofRevenues,Expenditures,andChanges infundbalances-budget(gapbasis)andactual GOVERNMENTALFUNDS-GENERALFUND FortheYearEndedJune30,198 StatementC REVENUES Localsources: BUDGET ACTUAL(UNFAVORABLE) VARIANCE Taxes:Advalorem Interestearnings Other Salesanduse 2,86,50$ 6,012,126 Statesources: 283,032 FederaTsources Equalization ,931,85$ 6,361, ,267 38,32 349,854 65, ,290 Other EXPENDITURES TotalRevenues _ 17,068,79417,069,362 1,746,8481,694,365 (52,483) 568 L28,371,357$28,901,290$ 136,284 15, ,93 18,825 Curent: Instruction: Regularprograms Supodservices: Specialprograms Otherinstruelionalprograms $15,038,341$14,697,57$ 2,707,3932,809, ,736,1 340,784 (101,879) Studentservices Instructionalstafsuport Generaladministration 1,191,513 Scholadministration 1,494,159 Busineservices 598,03 1,061,378 Plantservices 2,046,375 1,428,968 Fodservices Studentransportationservices 341,845 56, ,135 71,93 Comunityserviceprogram Centralservices 1,362,090 1,898,394 1,715,616 47,291 1,382, , ,981 65,191 41,062 Facilitiesacquisitionendconstruction 312,761 1,701,07 18,614 Debtservice: 9,60 47,214 (2O,O58) Principalretirement , ,297 7,308 14,5397 Interestandbankcharges 59,60 59,515 (302,531) 7,054 2,492 TotalExpenditures 24,640 24, $28,87,237$28,471,691~ 415, EXCES(Deficiency)OFREVENUESOVEREXPENDITURESL(515,80)$429,59$ (CONTINUED) 945,479

35 LINCOLNPARISHSCHOLBOARD GOVERNMENTALFUNDS-GENERALFUND Ruston,Louisiana CombinedStatementofRevenues,Expenditures,andChanges infundbalances-budget(gapbasis)andactual FortheYearEndedJune30,198 StatementC BUDGET ACTUAL(UNFAVORABLE~ VARIANCE OTHERFINANCINGSOURCES(USES) Operatingtransfersin TotalOtherFinancingSources(Uses) Operatingtransfersout $34,538$ 17,78$ (16,750) $(65,462)$(9,9)~. (f0,0~ (17,767) (17,767~ (34,537) EXCES(Deficiency)OFREVENUESAND OTHERSOURCESOVEREXPENDITURES FUNDBALANCEATBEGININGOFYEAR ANDOTHERUSES $(581,342)$329,60$ 910,942 FUNDBALANCEATENDOFYEAR _3.478,984 3,890,747 41,763_ 2~897~642~4~201347~1~32=705 (CONTINUED)

36 LINCOLNPARISHSCHOLBOARD Ruston,Louisiana CombinedStatementofRevenues,Expenditures,andChanges GOVERNMENTALFUNDS-SPECIALREVENUEFUNDS infundbalances-budget(gapbasis)andactual FortheYearEndedJune StatementC REVENUES Localsources: BUDGET ACTUAL(UNFAVORABLE)_ VARIANCE Taxes: Interestearnings Fodservice Advalorem 987,60$ Statesources: Other 39, ,350 45,30 1,09,806$ 35, ,12 15,182 (9,3)61 2,206 Federalsources Equalization Other EXPENDITURES TotalRevenues _3,483,79 1t6,94 37, ,793 37,156 10,849 (570) L5,375,679~5,39,081$ 3,408,806 (74,9~ (36,598~ Curent: Instruction: Regularprograms Suportservices: Specialprograms Otherinstructionalprograms 1,516,09 48,980$ Instructionalstafsuport 107,390 1,307, ,529$ 208,78 (3,549) 67 Generaladministration Fodservices Plantservices Facilitiesacquisitionandconstruction Studentransportationservices 1,109,732 31,60 62, ,742 60,680 27,858 2,068 2,253, ,01 1,038,387 2,143, ,359 71,345 10,34 5,652 TotalExpenditures L5,65,80$5,216,126_~ 59,650 42, ,674 17,1 EXCES(Deficiency)OFREVENUESOVEREXPENDITURES$(280,121)$12,95$ OTHERFINANCINGSOURCES(USES) 403,076 Operatingtransfersin Opemfingtransfersout Saleofasets $10,0$I0,0$ (98,519) (98,519) O TotalOtherFinancingSources(Uses) 1O,0$ 0 1,151 2,632$ (97,36~ 1,151 EXCES(Deficiency)OFREVENUESANDOTHER FUNDBALANCESATBEGININGOFYEAR SOURCESOVEREXPENDITURESANDOTHERUSES $(180,121)$125,587$ 305,708 FUNDBALANCESATENDOFYEAR ~;769,203~;1~074,91~; 949, , ,708 O (CONCLUDEO) THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

37 LINCOLNPARISHSCHOLBOARD PROPRIETARYFUNDTYPE-INTERNALSERVICEFUNDS Ruston,Louisiana CombinedStatementofRevenues,Expenses andchangesinretainedearnings(deficit) ForTheYearEndedJune30,198 StatementD OPERATINGREVENUE OPERATINGEXPENSES Premiums 3,92,342 Administration Insurancexpense Claims $ 3,36, ,061 36,470 Totaloperatingexpenses NONOPER/kTINGF~.EVENUES Operatingincome(los) $ 3,878,94 43,398 Earningsoninvestments RETAINEDEARNINGS(Deficit)ATBEGININGOFYEAR Netincome(les) $ 47,609 4,21 RETAINEDEARNINGS(Deficit)ATENDOFYEAR $ 52,934 5,325 THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

38 LINCOLNPARISHSCHOLBOARD PROPRIETARYFUNDTYPE-INTERNALSERVICEFUNDS Ruston,Louisiana CombinedStatementofCashFlows FortheYearEndedJune CASHFLOWFROMOPERATINGACTIVITIE'S Operatingincome(los) Adjustmentstoreconcileoperatingincome tonetcashprovided(used)foroperating activities Increase(decrease)inpayable (Increase)decreaseinreceivable Netcashprovided(used)for CASHFLOWFROMINVESTINGACTIVITIES operatingactivities Earningsoninvestments Net(increase)decreaseincashand Netcashprovided(used)byinvestingactivities CASHANDCASHEQUIVALENTSAT cashequivalents CASHANDCASHEQUIVALENTSAT BEGININGOF'YEAR ENDOFYEAR StatementE 43,398 (43,968) (35,045) (35,615) 4,21 4,21 (31,404) 261,197 THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

39 NOTE1ĀḂ Ċ LincolnParishScholBoard Ruston,Louisiana NotestotileGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 INDEX SUMARYOFSIGNIFICANTACOUNTINGPOLICIES. REPORTINGENTITY FUNDSANDACOUNTGROUPS GovernmentalFunds ProprietaryFunds FiduciaryFunds AcountGroups MEASUREMENTFOCUSANDBASISOFACOUNTING GovernmentalFunds ProprietaryFunds FiduciaryFunds D.BUDGETS GeneralBudgetPolicies Encumbrances BudgetBasisofAcounting E.CASHANDCASHEQUIVALENTS F.INVESTMENTS G.SHORT-TERMINTERFUNDRECEIVABLES/PAYABLES H.INVENTORYANDPREPAIDITEMS I.FIXEDASETS J.DEFEREDREVENUES K.COMPENSATEDABSENCES L.LONG-TERMOBLIGATIONS M.FUNDEQUITY N.INTERFUNDTRANSACTIONS O.SALESTAXES P.USEOFESTIMATES Q.MEMORANDUMONLY-TOTALCOLUMNS NOTE2-;TEWARDSHIP,COMPLIANCE,ANDACOUNTABILITY A.DeficitRetainedEarnings B.ExcesofExpendituresoverApropriationsinIndividualFunds NOTE3LEVIEDTAXES NOTE4DEPOSITSANDINVESTMENTS NOTE5RECEIVABLES NOTE6FIXEDASETS NOTE7RETIREMENTSYSTEMS NOTE8OTHERPOST-EMPLOYMENTBENEF1TS NOTE9ACOUNTS,SALARIESANDOTHERPAYABLES NOTE10COMPENSATEDABSENCES NOTE1CHANGESINAGENCYFUNDEPOSITSDUEOTHERS NOTE12LEASES NOTE13-CHANGES1NGENERALONG-TERMOBLIGATIONS NOTE14-INTERFUNDASETS/LIABILITIES NOTE15-RESERVEDANDESIGNATEDFUNDBALANCES NOTE16-LITIGATIONANDCLAIMS NOTE17-RISKMANAGEMENT NOTE18-ON-BEHALFPAYMENTSFORFRINGEBENEFITSANDSALARIES NOTE19-YEAR20COMPLIANCE NOTE20-DEFEASANCEOFDEBT NOTE21-ADVANCEREFUNDING NOTE2-SUBSEQUENTEVENTS. Page

40 LincolnParishScholBoard NotestotheGeneral-PurposeFinancialStatements Ruston,Louisiana NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES AsofandfortheYearEndedJune30,198 TheacompanyingfinancialstatementsoftheScholBoardhavebenpreparedinconfonitywithgeneraly aceptedacountingprinciples(gap)asapliedtogovermnentalunits.thegovernmentalacountingstandards Board(GASB)istheaceptedstandard-setingbodyforestablishingovernmentalacountingandfinancialreporting principles. A.REPORTINGENTITY TheLincolnParishScholBoardwascreatedbyLouisianaRevisedStatute(LSA-R.S.)17:51toprovidepublic educationforthechildrenwithinlincolnparish.thescholboardisauthorizedbylsa-r.s.17:81to establishpoliciesandregulationsfoxitsowngovernmentconsistentwiththelawsofthestateoflouisiauand theregulationsofthelouisianaboardofelementaryandsecondaryeducation.thescholboardiscomprised oftwelvememberswhoarelectedfromtwelvedistrictsfortermsofouryears. TheScholBoardoperatesfourtenscholsandisthefiscalagentforfouruniversitylaboratoryscholswithin theparishwithatotalenrolhnentofaproximately7,02pupils.inconjunctionwiththeregulareducational programs,someofthesescholsoferspecialeducationand/oradulteducationprograms.inadition,the ScholBoardprovidestransportationandscholfodservicesforthestudents. GASBStatement14establishescriteriafordeterminingthegovernmentalreportingentityandcomponentunits thatshouldbeincludedwiflrinthereportingentity.underprovisionsofthisstatement,thescholboardis consideredaprimarygovernment,sinceitisaspecialpurposegovernmenthathasaseparatelyelected governingbody,islegalyseparate,andisfiscalyindependentofotherstateorlocalgovernments.asusedin GASBStatement14,fiscalyindependentmeansthatheScholBoardmay,withoutheaprovalorconsent ofanothergovernmentalentity,determineormodifyitsownbudget,levyitsowntaxesorsetratesorcharges, audisuebondedebt.thescholboardalsohasnocomponentunits,definedbygasbstatement14asoilier legalyseparateorganizationsforwhichthelectedscholboardmembersarefinancialyacountable.there arenotherprimarygovernmentswithwhichthescholboardhasasignificantrelationship. B.FUNDSANDACOUNTGROUPS TheacountsoftheScholBoardareorganizedandoperatedonthebasisofundsandacountgroups.Afund isanindependentfiscalandacountingentitywithaself-balancingsetofacounts.fundacountingsegregates fundsacordingtotheirintendedpurposeandisusedtoaidmanagementindemonstratingcompliancewith finance-relatedlegalandcontractualprovisions.theminimumnumberofundsaremaintainedconsistentwith legalandmanagerialrequirements.acountgroupsareareportingdevicetoacountforcertainasetsand liabilitiesofthegovernmentalfundsnotrecordedirectlyinthosefunds. ThefundsoftheScholBoardareclasifiedintothrecategories:governmental,proprietaryandfiduciary. Inturn,eachcategoryisdividedintoseparatefundtypes.Thefundandacountgroupclasificationsanda descriptionofeachexistingfundtypefolow: 14

41 LincolnParishScholBoard NotestotheGeneral-PurposeFinancialStatements Ruston,Louisiana NOTEI-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) AsofandfortheYearEndedJune30,198 B,FUNDSANDACOUNTGROUPS(Continued) GovernmentalFunds GoverumentalfundsareusedtoacountfortheScholBoard'sgeneralgovernmentactivities,including thecolectionandisbursementofspecificorlegalyrestrictedmonies,theacquisitionorconstructionof generalfixedasets,andtheservicingofgeneralong-termdebt.governmentalfundsinclude: Generalfund-theprimaryoperatingfundoftheScholBoard.Itacountsforalfinancial resourcesofthescholboard,excepthoserequiredtobeacountedforinanotherfund, Specialrevenuefunds-acountsforevenuesourcesthatarelegalyrestrictedtoexpeudituresfor specifiedpurposes(notincludingexpendabletrustsormajorcapitalprojects). Dehtservicefunds-acountsfortheservicingofgeneralong-termdebtnotbeingfinancedby PronrietarvFunds proprietaryornonexpendabletrustfunds. l'ropfielaryfundsacountforactivitiesimilartothosefoundintheprivatesector,wheretbedetermination ofnetincomeisnecesaryorusefultosoundfinancialadnfinistration.proprietaryfundsdiferfrom governmentalfundsinthatheirfocusisonincomemeasurement,which,togetherwiththemaintenance ofequity,isanimportantfinancialindicator.proprietaryfund(s)includetilefolowing: Internalservicefunds-acountsforoperationsthatprovideservicesotherdepartmentsoragcnciesof thegovernment,ortothergovernments,onacost-reimbursementbasis. Workers'compensationfund-Thisfund,whichbeganinfiscalyear191,isusedtoacountfor thepaymentofworkers'compensationbenefits.fundrevenuesarederivedfromgoverument alocations.theserevenuesareplanedtomatch:(1)expensesofiusuraucepremiumsinexcesof riskretentionamounts;(2)estimatedclaimlosesresultingfromriskretentionprogramswhichinclude estimatedliabilitiesforclaimsincuredbutnotyetreportedatyearend,and(3)operatingexpenses. Grouphealthinsurancefund-Moniesinthisfundarereceivedfromthresources:employe deductionsfrompayrol,1967salestaxfundandthestateoflouisiana.moniesareusedtopay employehealthinsuranceclaims,theadministrativecostotheinsurauceadministratorfor administrationoftheplanandprocesingmedicalclaims,costofexcesandspecificinsuranceto protect'thefundfromexposuretolargeclaims,hospitalpre-certifica'tion,audlifeinsuraocewithan insurancecarier.

42 LincolnParishScholBoard NotestotheGeneral-PurposeFinancialStatements Ruston,Louisiana AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) B.FUNDSANDACOUNTGROUPS(Continued) FiduciaryFunds Fiduciaryfundsacountforasetsheldbythegovernmentinatrustecapacityorasanagentonbehalfof outsideparties,includingothergovernments,oronbehalfofoilierfundswithinthescholboard.trusl fundsacountforasetsheldbythegovernmentunderthetermsofaformaltrustagrement. Agencyfimdsarecustodialinature(asetsequaliabilities)andonotpresentresultsofoperationsorhave ameasurementfocus.agencyfundsareacountedforusingthemodifiedacrualbasisofacounting.this fundisusedtoacountforasetsthathegovernmentholdsforothersinanagencycapacity.theagency fundisasfolows: Scholactivityagencyfund-acountsforasetsheldbytheScholBoardasanagentfortile AcountGroups individualscholsandscholorganizations. Thegeneralfixedasetsacountgroupisusedtoacountforfixedasetsnotacountedforinproprietary ortrustfunds. Thegeneralong-termdebtacountgroupisusedtoacountforgeneralong-termdebtandcertainother C.MEASUREMENTFOCUSANDBASISOFACOUNTING liabilitiesthatarcnotspecificliabilitiesofproprietaryortrustfunds. GovernmentalFunds Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyitsmeasurementfocus. Withthismeasurementfocus,onlycurentasetsandcurentliabilitiesaregeneralyiacludedonthe balanceshet.operatingstatementsofthesefundspresentincreasesandecreasesinetcurentasets. Thegovernmentalfundsusethefolowingpracticesinrecordingrevenuesandexpenditures.Goverumental fundtypesusetheflowofcurentfinancialresourcesmeasurementfocusandthemodifiedacrualbasis ofacounting.underthemodifiedacrualbasisofacountingrevenuesarerecognizedwhensusceptible toacrual(i.e.,whentheyare"measurableandavailable")."measurable"meanstheamountofthe transactioncanbedeterminedand"available"meanscolectiblewithinthecurentperiodorsonenough thereaftertopayliabilitiesofthecurentperiod.thegovernmentconsidersalrevenuesavailableifthey arecolectedwithin60daysafteryear-end.expendituresarerecordedwhentherelatedfundliabilityis incured,exceptforinterestandprincipalpaymentsongeneralong-termdebtwhichisrecognizedwhen due,andcertaincompensatedabsencesandclaimsandjudgmentswhicharerecoguizodwhenthe obligationsarexpectedtobeliquidatedwithexpendableavailablefinancialresources.