the entiw and otherappropriate publicofficials.7he

Transcription

1 PINE HILL W ATER W ORKS DI STRICT NO. 8 CADDO PARI SH,LOUISIANA GENERAL PURPOSE FINANCJA L STATEM ENTS V INDEI'ENDENT AUI)ITOR'S REPORT As of and forihtryearel~ded ]uiy 31,2000 W ith SupplementalInfo rmalion Schedules Underprovisions ofstate law,this report is a public docum ent.a copyofthe reporthas been subm itted to the entiw and otherappropriate publicofficials.7he report is available forpublic inspection atthe Baton Rouge office ofthe Legislative Auditorand,w here appropriate,atthe office ofthe parish clerk ofcourt. Release Date O /

2 PIN E H ILL W A TER W ORK S D ISTRICT N O.8 Caddo Parish,Louisiana G eneralpurpose FinancialStatem ents W ith IndependentA uditor's R eport A s of and for the Y earended July 31,2000 W ith Supplem entalinform ation Schedules C O N I"E N T S Statem ent Page N o. Independent A uditor's R eport 2 G eneralp url)ose FinancialStatem ents Proprietary Fund Type Enterprise Fund B alance Sheet Statem entof R evenues,expenses,and Changes in R etained Earnings Statem ent of (;ash Flow s N otes to the FinancialStatem ents Supplem entalinform ation W aterraleschedule(unaudited) ScheduleofInsurance(Unaudited) Schedule of Per D iem Paid Com m issioners Sum m ary Schedule of PriorA uditfindings lndependenla uditor's R eportr equired by Governm enta uditing Standards: Reporton Com pliance and on InternalControlO ver FinancialReporting Based on A n A uditof FinancialStatem entsperform ed In A ccordance w ith Govepnm entauditing Standards Schedule of Findings A B C Schedule Page N o

3 D.L.B utler CERTIFIED PUBLIC ACCO UNTANT 222 FLORl)A STREET,SUITE 101 SHREVEPORT,LOUISIANA M em ber Am erican Instituteof CPA s Society o flouisia~lac PA s Telephone (318) Fax(318) Independent A uditor's R eport BOA RD O17COM M ISSION ER S PIN E IllLL W A TER W O RK S D ISTRICT N O.8 Caddo Parish,Louisiana 1 have audiled the accom pauying generalpurpose financialstatem ents of Pine H illw ater W orks D istrict N o.8,a com ponent unit of the C addo Parish Com m ission,as of July 31,2000,and for the yearthen ended,as listed in the table of contents. These generalpurpose financialstatem ents arc the responsibility of the district's m anagem ent. M y responsibility is to express an opinion on these generalim rp ose financialstatem entsbased on m y audit. 1 conducted m y audit in accordance w ith generally accepted auditing standards and the standards al)plicablc to the financial audits contained in Governm ent Auditing Standards, issued by the Com ptroller G eneral of the U nited States. Those standards require that} plan and perform the audit to obtain reasonable assurance aboutw hether the generalpurpose financialstatem ents are free of m ateri~d m isstatem ent. A n auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the generalpurpose financialstatem ents. A n auditalso includes assessing the,~ccounting principles used and significantestim ates m ade by m anagem ent,as w ell as evaluating the overall general purpose financial stalem ent presentation. I believe that m y auditprovides a reasonable basis for m y opinion. In m y opinion,the generalpurpose financialstatem ents referred to in the firstparagraph present fairly,in allm aterialrespects,the financialposition of Pine H illw ater W orks D istrictn o.8,as of July 31,2000,and the results of its operations and its cash flow s for the yearthen ended,in conform ity w ith generally accepted accounting principles. M y audit w a,;m ade for the purpose of form ing an opinion of the general purpose financial statem ents taken as a w hole. The Schedule of Com pensation Paid Com m issioners and the Sum m ary Schedule of Prior A udit Findings listed in the table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statementsofpinehilw aterw orksdistrictno.8. Such il}fonnation hasbeen subjected to the auditing procedures applied in the audit of the general purp ose financial statem ents and, in m y opinion, is fairly stated, in all m aterial respects, in relation to the general purpose financial statem ents taken as a w hole. 2

4 BOA RD O F CO M M ISSION ERS PIN E ttlll W ATER W O RK S D ISTRICT N O.8 Caddo Parish,Louisiana The W aterrate Schedule and Schedule of Insurance are nota required partofthe generalpurpose financialstatem entsbatare supplem entary inform ation. Ihave applied certain lim ited procedures, w hich consisted principally of inquires of m anagem ent regarding the presentation of this supplem entary inform ation. H ow ever,1did notauditthe inform ation and expressno opinion on it. In accordance w ith Governm enta uditing Standards,Ihave also issued a reportdated Septem ber28, 2000,on m y consideration of Pine H illw aterw orksd istrictn o.8'sinternalcontroloverfinancial reporting and m y testsof the district'scom pliance w ith certain provisionsof law s,regulations,and contracts. Thatreport is an integralpartof an auditperform ed in accordance w ith G overnm ent Auditing Standardsand should beread in conjunction with thisreportinconsidering theresultsof m y audit. Shreveport,1,ouisiana Septem ber28,2000 ll) #

5 G EN ERA L PUR PO SE FIN A N C IA L STA TEM EN TS b 4.

6 PIN E H ILL W ATER W O RK S D ISTRICT N O.8 CA D D O PA RISIt,LO U ISIAN A PRO PRIETA RY FU ND TYPEEN TERPRISE FU N D Statem enta Balance Sheet,July 31,2000 (W ith Comparative TotalsforJuly 31,1999) C U RREN T A SSETS Cash and Cash Equivalents Accountsreceivable (Netof allowance fordoubtfulaccounts) Prepaid expenses and deposits Totalcurrent assets A SSETS $ 53,510 50,231 5,709 _ 109,450 $ 144,385 40,954 _ 4, ,086 N O N CU R R[';N T A SSETS Investm ents 16,157 RESTRICT)_~])_AS_S_I~'I~q_ hw cstm enls bond and interestsinking fire d hw estm cnls bond resei~e fund lnvcstm entsbond replacem entand extension fund Investm ents m eter deposits T otalrestricted assets PROPERTY AN D. ~QUIPM ENT Pipeline W elland w ellequipm ent O ther equipm ent O ffice huihling Truck Land Less accum ulated depreciation Totalproperty and equipm ent OTH ER A SSETS "1otalassets 22,570 22,245 22,000 5,500 72, , , ,586 74,334 17,622 17,303 1,224,591 <548,719> 675,872 2, ,076 22,550 22,245 22,000 5,291 72, , , ,009 74,334 17,622 17, ,299 <546,274> 417,025 2,282 $68!,479 5

7 PIN E }IliA_ W A T ER W O RK S D ISTR IC T N O.8 CA D D O PA RISH,LO U ISIA N A PRO PRIETA RY FU N D TY PEEN TERPRISE FUN D l?,alance Sheet.etc. Statem enta la BILITIES AN D FUN D EO U ITY (CON TD CU RREN T LIA BII.IT1ES A ccounts payable and accrued expenses Currentmaturitiesoflongterm debt(note2) Totalcurrentliabilities $221,591 16, ~591 $ 23,236 15,000 38,236 M ETER DEPOSITS (NOTE 6) ~5~ ,910 LO N G TH ~,M L1A 131L1TIES Com pensated absencespayable Longterm debtlesscurrentmaturities(note 2) Totallong term liabilities Totalliabilities 9,217 A ~o,ooo ~39~Z2 U _ d , , ,~ FUND I~ IJ_D~Y Con!ri _ [~ Le~kc2(~ alpriorto operations 6,835 6,835 R eta i _!_e.~t _ e _ a _ r0 ~ Reserved for generalobligation bonds Reserved forbond currentdebtservice R eserv ed for bond future debtservice Reserved forbond debtservice contingency U nreserv ed retained earnings "lotalretained earnings Totalfnnd equity Totalliabilitiesand fund equity 44,430 22,245 22,135 19,805 _ 328, , ,268 ~_8_76,07~ 44,430 22,245 22,135 19, , , ,116 $681,479 (Concluded) The accom panying notes are an integralpartof these financialstatem ents

8 PIN E ttill W A TER W O RK S D ISTRICT N O.8 CA D D O PA R ISH,LO U ISIA N A PR O PRIETA RY FUN D TY PEEN TERPRISE FU N D Statem entb Statem entof R evenues,e xpenses and Changes in Retained Earnings Forthe Y earended July 31,2000 (W ith Comparative TotalsforJuly 31,1999) O I'ERATING REV EN U ES W atersale,; Connection fees R econnection fees L ate fees & m iscellaneous Totaloperaling revenue $422,104 10, , ,381 $411,017 6,887 1,160 _ 15, ,296 O PERA TIN G EX PEN SES W aterpurchases Repairs and m ainteuance C ontractlabor U tilities D epreciatiox~ W ellsite and severance fees Salaries Em ploycc bencfils Insurance Professionalfees O ffice B uilding m aintenance Com m issioner fees Supplies Taxes and licenses Truck and M ileage Bad debts M iscellaneous Totaloperaling expenses O PERA TIN G /N CO M E 164,761 42,923 11,990 27,582 52,911 18,238 56,749 12,443 7,634 7, ,620 18,628 4,566 3,600 5, ,548 7, ,756 46,784 13,972 24,042 29,694 16,504 44, ,008 7,084 3, ,060 14,899 3,498 2,004 2, ,388 23,908 (Continued) 7

9 PIN E H ILl_,W A TER W ORK S DISTRICT N O.8 CA DD O PA RISII,LOU ISIAN A PRO PRIETA RY FU N D TYPEEN TERPRISE FUN D Statem entof Revenues,Expensesand Changes in R etained E arnings,etc. Statem entb NONOPERATING REVENUES (Expenses) lnterestincom e Interestexpense N ET 1N CO M F. Totalnonoperating revenues(expenses) $ 7,564 <7,245> 319 8,152 $ 9045 <7,920> ,033 RETA IN ED EA RN IN G AT BEGINN IN G OF Y EA R 429, ,248 RETA IN ED EA RN IN G AT EN D O F Y EA R (Concluded) Tile accom panying notes are an integralpartof these financialstatem ents 8

10 PIN E H ILL W A TER W ORK S D ISTRICT N O.8 CA D D O PA RISH,LOU ISIAN A PRO PRIETA RY FUN D TYPEEN TERPRISE FU N D Statem entc Statem entof Cash Flow s For the Y earended July 31,2000 (W ith ComparativeTotalsforJuly 31,1999) CA SltFLO W S FRO M O PERA TIN G A CTIV ITIES O perating incom e Adjustmcnlsto Reconcile Operating Incometo NetCash Provided by O perating A ctivities: D epreciation C hanges in operating assets and liabilities: Decrcase (increase)in receivables Decrease (ijmrcase)in prepaid expej~ses Increase (decrease)in customerdeposits Increase (dccrease)in accountspayable and accrued expenses Netca,;h provided (required)by operating activities 2000 $ 7,833 52,911 <9,277> <962> 3, ~ , $23,908 29,694 24,302 <393> 1,090 <22,801> 55,800 CA SIt FI,O W S FRO M IN V ESTIN G A CTIV ITIES Purchase of properly and equipm ent 1)ecrease(increase)in investments Decrease (increase)in reslricted assets Interestearned on bank deposits N etcash used by investing activities <311,758> < 16,157> <229> ~7564 <32o~58o> < 17,622> <209> 9,045 <8.786> CA S]IFLO W S FRO M lqna N CIN G A CTIV ITIES Principalpaym enls on longterm debt Interestpaid on long term debt N etcash used by financing activities <15,000> <22~245> < 15,000> <7,920> <22,920> NET INCREASE (DECRF,ASE)IN CASH <90,875> 24,094 CASItAND CASH EQUIVALENTS AT BEGINNING O F Y EA R 144~ ,291 CASH AND CASH.EQUIVALENTS AT END OF YEAR $ 53,_ 510 $144,385 T he accom panym tg note.s arc an integralparlof these financialstatem ents

11 PIN E ttlll W ATER W ORK S D ISTRICT N O.8 CA D D O PA RISH,LO U ISIA N A N otes to the FinancialStatem ents A s of and forthe Y earended July 31, SU M M A RY O F SIG NIFIC AN T A C CO U N TIN G PO LIC IES Pine llillw aterd istrictn o.8 w ascreated by the Caddo Parish Com m ission asauthorized by Louisiana Revised Statute 33:3811 for the purpose of supplying safe drinking w ater to the population of the district. The district is governed by a five m em ber board appointed by the com m ission to serve five yearterm sof office. The board m em bersreceive $60 foreach m eeting that they attend.the district has 2 full tim e em ployees and 1 parttim e ernployee. The district serves 132(Icustom ers. A. BA SIS O F PR ESEN TA TIO N The accom panying generalpurpose financialstatem entsof Pine ttillw aterw orks D istrictn o. 8 have been prepared in conformity with generajly accepted accounting principles(gaap)as applied to governmentalunits. TheGovernmentalAccounting StandardsBoard (GASB)isthe accepted standardsetting body for established governm entalaccounting and financialreporting principles. B. IIEPO IITIN G EN TIT Y A s the governing authority of the parish, for reporting purposes, the Caddo Parish Connnission is the financialreporting entity for Caddo Parish, The financialreporting entity consistsof(a)primary govern ment(thecommission), (b)organizationstorwhich theprimary governmenlis financially accountable,and (c) other organizations for which the nature and significance of flleirrelationship w ith the prim ary governm entare such fl~atexclusion w ould cause the reporting enlity's financialstatem ents to be m isleading or incom plete. Govern mentalaccounting StandardsBoard (GASB)StatementNo.14 established criteriafor determ ining w hich com ponentunits should be considered partof the Caddo Parish Com m ission forfinancialreporting purposes. The basic criteria for including a potentialcom ponentunitw ithin the reporting entity is financialaccountability. The G A SB has setforth criteria to be considered in delerm ining financialaccountability. This criteria includes: Appointing avoting majority of an organization'sgovern ing body,and; ~. The ability of the com m ission to im pose its w illon the organization and/or; b. The potentialforthe organization to provide specific financialbenefits to or im pose specific financialburdens on the com m ission. Organizations for which the commission does notappointa voting majority but are fiscally dependenton the com m ission. 10

12 PIN E ItlLL W A TER W O RK S D ISTRICT N O.8 CA D D O PA R1Stt,LO U ISIA N A Notesto the.financialstatements (continued) O rganizations for which the reporting m isleading if data of the organization is significance of the relationship. entity financial statem ents w ould be not included because on the nature or B ecause the com m ission appoints the governing body of the district and has the ability to im pose its w illon the district,the districtw asdeterm ined to be a com ponentunitof the Caddo Parish Com m ission,the financialreporting entity. The accom panying financialstatem entspresent inform atinn only on the funds m aintained by the districtand do not presentinform ation on the com m ission,the general governm ent services provided by that governm entalunit,or the other govern m entalunits thatcom prise the financialreporting entity. C. FU N D A C C O U N TIN G Pine IIillW aterw orks D istrictn o.8 is organized and operated on a fund basiswhereby a selfbahmcing setof accounts(enterprisefund)ismaintained thatcomprisesitsassets,liabilities, fund equity,revenues,and expenses. The operationsare financed and operated in a m annersim ilar to apriwttebusinessenterprise,wheretheintentofthegoverning body isthatthe cost(expenses, including depreciation) ofproviding services on a continuing basis be financed orrecovered prim arily throu~,h user charges. D. BA SIS O F A C C O U N TIN G The accounting and financial reporting treatm ent applied to a fund is determ ined by its m easurem ent focus. The Enterprise Fund is accounted for on a flow of econom ic resources m easurem ent focus and a determ ination of net incom e and capital m aintenance. W ith this m easurem ent focus,allassets and all liabilities associated w ith the operation of this fund are included on the balance sheet. The Enterprise Fund is reported in the accom panying financial statem ent,;on the accrualbasisof accounting. Revenues,such asw atersalesand otheroperating incom e are recognized w hen they are earned. Intereston bank deposits is recorded when the interest is credited to the account. A llexpenses of the districtare recognized when they are incurred. E. C A SH Cash includes am ounts in interestbearing dem and deposits,m oney m arketand petty cash. U nder state law, the district m ay deposit funds in dem and deposits, interestbearing dem and depositsortim e deposits w ith state banks organized underthe law sof the State of Louisiana,or any otherstate of the U nited States,orunderthe law s of the U nited States. F. RE STR IC TED A SSETS Certain resourcesof the Enterprise Fund setaside forthe repaym entof revenue bondsand the refunding of custom erdepositsare classified asrestricted assetson the balance sheetbecause their use is lim ited. 11

13 PIN E ttlll W ATER W O RK S DISTRICT N O.8 CA D D O PA RISH,LO U ISIA N A Notesto thefinancialstatements (continued) G. FIX EI) A SSETS A ND LO N G TER M D EBT Fixed assets of the district are included on the balance sheet of the enterprise fund and are recorded atactualcost. D epreciation of allexhaustible fixed assets is charged asan expense againsloperations. D epreciation is com puted using the straightline m ethod over the estim ated usefulliw.'s20 to 50 yearsforthe wells,w atertanksand lines,35 yearsforbuilding,and 3 to 10 years for equipm ent. tl. V A C A TIO N A N D SIC K LEA V E The district's fulltim e em ployees earn from 5 to 15 days of vacation leave per year depending upon length of service. V acation m ustbe taken in the calendaryearearned. Fulltim e em ployeesearn 10 daysto 21daysof sick leave peryeardepending upon lcngth of service. Sick leave m ay be accum ulated up to 6 m onths. A fter 6 m onths of sick leave is accunm lated, em ployeesw illbe paid atregularrate of pay for 1/2 of m m sed sick leave each year. A tjuly 31, 2000 the districthas a liability forcom pensated absences of $9,217. I. EST IM A T ES The preparation of financial statem ents in conform ity w ith generally accepted accounting principlesrequiresm anagem entto m ake estim atesand assum ptionsthataffectcertain reported am ounts and disclosures. A ccordingly,actualresults could differ from those estim ates. J. C O M PA R AT IV E D A TA Com parative data for the prior year has been presented in the accom panying general purpose financialstatem ents to provide an understanding of changes in Pine H illw ater W orks D istrictn o.8"s financialposition and operations. 2. L O N G T E R M D E B T Longterm debtconsists of 4 1/2% m ortgage bonds collateralized by allproperty and the net revenue derived from the operationsof the system.the issue dated July 1,1968 w asfor$390,000. Itw asoriginally purchased by the U nited StatesD epartm entof H ousing and U rban D evelopm entbut w as subsequently sold to the G eneral Electric Credit Corporation and then sold to GM A C Com m ercialcorporation.interestis payable sem iannually on January 1 and July 1 of each year. Principalpaym ents are m ade annually in increasing am ounts sufficientto retire the debtby July, The outstanding principaltotals$146,000 atjuly 31,2000 w ith currentm aturity of $16,000. The anaountof interestpaid during 2000 w as $7,

14 PIN E ItlLL W A TEP,W O RK S D ISTRICT N O.8 C A D D O PA R ISH,LO U ISIAN A At July 31,2000 the balance in the restricted funds totaled $72,315.Interest earned on this am ountis deposited to the operating bank account. The annualrequirem ents to am ortize bond debtoutstanding atjuly 31,2(100 are as follow s Y ear ending July 31 P _rjin_cip!a! Interest G M AC Com m ercialm orteaee Y earending Jjlly 31 Princip.g!l Inm rest ,000 17,000 17,000 18,000 19,000 6,570 5,850 5,085 4, , , _ 18N 9_ooo 2,655 1, $14~600fl ~30,55fi 3. III~;SIgR V I~'I) I/ETA IN ED EA R N IN G Thc bond covenant for the 1968 Revenue tjonds discussed in N ote 2 above, requires the districtto cstablish the follow reserve accounts: A B C A "Revenue Bond and InterestSinking Fund". The districtm ustlransferinto thisfund each m onth,onetw elfth of the nextm aturing installm entof principaland intereston the outstanding bonds. The fund isused to pay intereston the bondsand to retire the bonds as they nlature. A"Revenue Bond Reserve Fund". The districtm usttransfer into this fund $183 each nlonth until$22,000 has been accum ulated in this fund. Such am ountsm ay be used solely forthe paym entof principaland interestw hich W ol,ld otherw ise be in default. A "Replacem entand Extension Fund". Tile districtm usttransfer$92 perm onth into this fire d until$5,500 hasbeen accum ulated.m oney in thisfund isto be used forthe purpose of paying the costof unusualor extraordinary m aintenance,repairs,replacem ents and extensionsof the system and to elim inate deficiencies in the R evenue Bond and Interest Sinking Fund and the Revenue B ond R eserve Fund. 13

15 PIN E ItlLL W A TER W O RK S D ISTRICT N O.8 CA D D O I~A Pd Slt,LO U ISIA N A Notesto thefinancialstatements (continued) 4. C A SIt AtJuly 31,2000,tile districthascash (book balances)totaling $53,510,asfollows Petty Cash lntercstbearing dem and deposits A SO Prim e M oney m arket Total ,238 53,510 These deposits are stated atcost,w hich approxim ates m arket. U nder State law,thcse deposits (ortile resulting bank balances)mustbe secured by federaldepositinsurance or the pledge of securitiesowned by the fiscalagentbank. Cash (bank balances)atjuly 31,2000,are secured as follow s: Regions Bank C ity Bank A m Soulh Tolal Bank balance _ 7,106 41,132 _5J22 53,360 Fedcraldepositinsurance 7,106 41, CASH AND ('ASItEQUIVALENTS For purpose of lhe statem ent of cash flow s, the district considers all cash and unrestricted investm ent instrum ents purchased w ith original m aturities of three m onths or less to be cash equivalents. AtJuly 31,2000,cash equivalentstotaled $53, M ETER D EPO SITS The districtretains a depositon eacb m eter to assure prom ptpaym entof m onthly w ater bills. Cash refunds are m ade after the finalbill. Under the laws governing the agencies of the Caddo Parish Com m ission,the district is required to hold 10% of the m eter deposits in savings. The depositstotaled $55,000 atjuly 31,2000. A nrountheld in savingsw as $5,500 atjuly 31, ~

16 PIN E H ILL W A TER W O RK S D ISTPd CT N O.8 CA D D O PA RISIt,LO U ISIA N A Notesto thefinancialstatements (continued) 7. A C C O U NTS R E(2EIVA BLE A ccounts receivable are aged as follow s days 3060 days O ver 60 days Less allow ance for doubtfulaccounts $43,277 7,777 1, ,683 _ <2,452> ~50,23J_1 $37,683 6,419 1,373 45,475 <4,521> $40, FIX E D A SSE T S A sum m ary of property,plant,and equipm entatjuly 31,2000,follow s Land Pipeline W elland w ellequipm ent O therequipnm nt O ffice building Truck Less accum ulated depreciation Property,plant,and equipm ent (net) $ 17, , , ,586 74,334 17,622 1,224,591 <548,719> $ 675, PEN SIO N PL A N The em ployees of Pine ltillw ater W orks D istrictare m em bers of the SocialSecurity System. In addition to the em ployee contributions w ithheld at 7.65 l~er cent of gross salary, the district contributes allequal am ount to the Social Security System. The district does not guarantee the benefits granted by thc SocialSecurity System. 10. LIT IG A T IO N A N D C LA IM S AtJuly 31,200(I,the districtisnota defendantin any lawsuitand no judgmentsare pending. The districtm ain tains com m ercialinsurance coverage through a localagency to reduce the risk of loss resulting from property dam age or liabilfly claim s. There w ere no significantreductions in insurance coverage during flac yearended July 31,2000. There w ere no costsresulting from claim s orjudgmentsduring theyearended July 31,

17 PIN E ttill W A TER W O RK S D ISTRICT N O.8 C A D D O PA R]SIt,LO U ISIA N A Notesto thefinancialstatements(continued) 11.IN VESTM ENTS lnvestm enls are lim ited by Louisiana R evised Statute 33:2955.If the original m aturity of the investm ents exceed 90 days,they are classified as investm ents; however,if the originalm aturity of the investm entsare 90 daysor less,they are classed ascash equivalents. A tjuly 31,2000,the district's investm entsconsistof nonnegotiable certificates of depositw ith originalm aturities thatexceed 90 days that are reported m the financialstatem ents atcost. The bank balancesof the depositsare fully insured flora risk by federaldepositinsurance. 16

18 SU PI'LEM EN TA L INFO R M A TIO N SCH ED ULES 17

19 PIN E ItlLL W A TER W O RK S D ISTRICT N O.8 CA D D O PA RISH,LOU ISIA N A SU f'plem EN TA L INFO RM ATION SCH EDU LES Forthe Y earended July 31,2000 SCHEDULE OF W ATER RATES (Unauditcd) The district'scurrentwaterrate schedule ispresented.(schedule 1) SCHEDULE OF INSURA NCE (Unaudited) Thcdis rict'scurrentwaterratescheduleispresented.(schedule2) PER D IEM PA ID C O M M ISSIO N ER S The schedule of per diem paid to com m issioners is presented in com pliance w ith ltouse ConcurrentR esolution N o.54 of the 1979 Session of the Louisiana Legislature. In accordance w ith Louisiana P,c\,ised Statute 33:3819,the com m issionersreceive $60 foreach regularboard m eeting they attend if board m eetsm onthly.if a specialm eeting iscalled the com m issionersare paid $60 for each specialhoard meeting they attend (Schedule3). PRIO R A UD IT FIND IN G S The follow up and corrective action taken on allpriorauditfindingsispresented in the sum m ary schedule ofpriorauditfindings(schedule 4).

20 PIN E ttlll W A TER W O RK S D ISTRICT N O.8 Schedule 1 C A D D O PA R ISH,LO U ISIA N A Schedule of W aterr ates (Unaudited) For the Y ear ended July 31,2000 First2,000 gallons N ext 18,000 gallons N ext30,000 gallons U sage in excess of 50,000 gallons R ate $ m inim um charge 3.00/1, /1, /l,000 O ther Services Connection of new m eterto system (Includesarefundabledepositof$50) Connection tbr new custom er w here m eter is already connected to the system. (Includesareflmdable depositof $50) Reconnection of service disconnected due to failure Io pay bill N SF check the

21 PIN E IIILL W A TER W O RK S D ISTRICT N O,8 Schedule 2 CA D D O PA RIStI,LO U ISIA N A Schedule of Insurance (Unaudited) A s of July 31,2000 Insurer H artford Policy N o. Coverage Period 46C B B G R 9049 C om m ercialb lanketb ond /unt $325,000 Em ployee dishonesty cancelled Transcontinmltal B Fire and Casualty Loss / $598,100;$250 deductible, Com prehensive G eneral Liability each occurrence $100,000;A ggregate $100,000 $500 deductible L A W orkers 673 Com pensation Fund W orker's C om pensation /10/30/00 100/500/100 C larendon N ational D S A uto Liability / $1,000,000 com bined single lim it;m edical$2,000; unin sured m otorist$100,000 PhysicalD am age A ctualcash values; collision $500 deductible; other$250 deductible 20

22 PIN E H ILL W A TER W O RK S D ISTRICT N O.8 Schedule 3 C A D D O PA RISH,LO U ISIAN A Schedule of Board M em bersperd iem Forthe Y earended July 31,2000 G erald K enl G uy H am ilton President V icepresident $1, Linda Cham blec C.D.Clark Secretary Com m issioner Com m issioner 960 9OO 840 $4,620 21

23 PIN E H ILL W ATER W ORK S DISTRICT N O.8 Schedule 4 CA D D O PA RISH,LO U ISIA N A Sum m ary of Prior A uditfindings Forthe Y ear ended July 31,2000 Reference N um ber Fiscal Y ear Finding Initially O ccurred D escrintion of Findine Corrective A ction Taken AnnualFinancialStatem entnot subm itted to m ortgage holder w ithin the requircd tim e. See finding under cnrrentyear findings. 22

24 IndependentA uditor's R eportr equired by G overnm ent A uditing Standards The follow ing independent auditor's reporton internalcontroland com pliance is presented in compliance with the requirementsof GovernmentAuditing Standards (Standards forauditof Governmenlal Organizations, Programs, Activities,and Functions), issued by the Comptroller G eneralof the U nited States. 23

25 D.L.B utler CERTIFIED PUBLIC ACCO UNTANT 222 FLOm~p,ST~.~',SUITE 101 SHREVEPORT.LOtnSlANA 7 I105 M ember Am erican [nstltuleo (:PA s Society oflouisiaaacpa s Telephone (318) Fax(318)79%8585 Indepeudent A uditor's R eport on C om pliance and on internalc ontrol O ver FinancialR eporting Based on an A uditof FinancialStatem ents Perform ed in A ccordance w ith G overnm enta uditing Standards BO A RD O F CO M M ISSION ERS PIN E H ILL W A TF.R W O RK S DISTRICT N O.8 Caddo Parish,I,ouisiana l have audited the general purpose financialstatem ents of the Pine tlillw ater W orks D istrict N o.8,caddc~parish,louisiana as of July 31,2000,and for the year then ended,and have issued m y ~eportthereon dated Septem ber28,2000. I conducted m y audit in accordance w ith generally accepted auditin g standardsand the standardsapplicable to financialauditscontained in G overnm enta uditing Standards,issued by the Com ptroller G eneralof the U nited States. C om pliance A s partof obtaining reasonable assurance aboutw hether Pine tiillw ater W orks D istrict N o. 8's general purpose financial statem ents are free of m aterial m isstatem ents 1 perform ed tests of the district's com pliance w ith certain provisions of law s, regulations, and contracts, noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination of financial statem ent am ounts, tlow ever, providing an opinion on com pliance w ith those provisions was not an objective of my audit and accordingly, I do not express such an opinion. The results of m y tests disclosed instances of noncom pliance thatare required to be reported tra der G overnm ent Auditing Standards"which are described in the accom panying schedule of findings as and hrternalc ontrolo ver FinancialR eporting In planning and perform ing m y audit,i considered Pine H ill W ater W orks D istrict N o. 8's internalcontrolow ;r financialreporting in order to determ ine m y auditing procedures for the purpose of expressing m y opinion on the general purpose financial statem ents and not to provide assurance on the internal controlover financial reporting. M y consideration of the internal control over financial reporting w ould not necessarily disclose all m atters in the internal contro l over financial reporting that m ight be m aterial w eaknesses. A m aterial w eakness is a condition in w hich the design or operation of one or m ore of the internal control com ponents does not reduce to a relatively low level the risk that m isstatem ents in am ounts that w ould be m aterial in relation to the generalpurpose financial statem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. I noted no m atters involving internalcontrol over financialreporting and its operation thati considerto be m aterialw eaknesses. 24

26 B O A R D O F C O M M ISSIO N ER S PIN E ItlLL W A TER W O RK S D ISTRICT N O.8 Caddo Parish,Louisiana Reporto lcom pliance and on InternalControl This report is intended solely for the inform ation of the board of com m issioners of Pine H ill W aterw orks D istrictn o.8,m anagem entof the district,and interested state and federalagencies and is not intended to be and should notbe used by anyone other than these specified parties. Thisisnotintended to lim itthe distribution of thisreport,w hich is a m atterof public record. Shreveport,Louisiana Septem bcr ;!8,

27 PIN E H ILL W A TER W ORK S D ISTRICT N O.8 CAD D O PARISH,LOU ISIAN A SCH EDU LE OF FIN D IN G S For the Y earended July 31,2000 l have audited tile generalpurpose financialstatem ents of the Pine H illw ater W orks D istrict N o.8,caddo Parish,Louisiana as of July 31,2000,and for the year then ended, and have issued m y reportthereon dated Septem ber28,2000. Iconducted m y auditin accordance w ith generally accepted auditing standardsand the standards applicable to financialauditscontained in Governm e~tta uditing & andards, issued by the Com ptroller G eneral of the U nited States. M y auditof the financialstatem ents as of July 31, 2000 resulted in an unqualified opinion. Section ISum m ary of A uditor'sr eports A. R eporton InternalControland Com pliance M aterialto the FinancialStatem ents M aterialw eakness ReportaM c Conditions ()Yes ()Yes (x) No (x) No ComplianceM aterialto FinancialStatement (x) Yes ()No Section IIFinaneialStatem ent Findings A nnualfinancialstatem entsn otsubm itted to the M ortgage H older W ithin the R equired Tim e C riteria:the m ortgage note requiresthatannualaudited financialstatem entsbe sentto the m ortgage com pany w ithin 60 days of the close ~f the fiscalyear. C ondition: Pine ttillw aterw orksd istrictn o.8 did notsubm itfinancialstatem entsto the m ortgage com pauy w ithin 60 days of the close of the fiscalyear. 26

28 PIN E H ILL W A TER W O RK S D ISTRICT N O.8 CADD O PARISH,LOU ISIAN A SCHEDULE OF FINDINGS (continued) Forthe Y ear ended July 31,2000 Effect: M ortgage com pany did notreceive am m alfinancialstatem ents w hen required R ecom m endaiion: Irecom m end thatthe D istrictm ake available information thatcan be used to begin the auditprocedures priorto the end of the fiscalyearinstead of w aiting until the end ofthe year is closed outto provide the inform ation. M anagem ent'sr esponse: The D istrictoperatesw ith only one person in the ofi ce.a new com pulersystem w aspurchased and allpriorcustom erinform ation had to be reentered tlm s delaying lhe flow of inform ation. In the flm lre,the D istrictw illcontinue to provide inform ation that is available prior to closing outthe year. The D istrict's com puter system has com pleted the updating process and should notpresent a problem in subsequentyears N ew W ater M eters Purchased W ithoutg etting R equired Bids. Criteria: Statelaw requiresbidsmustbereceived on alpublicworksprojectsin excess of $100,000. C ondition: Pine H illw aterw orksd istrictn o.8 purchased new w aterm eters ata costof $198,450 and did notgetbids. Effect: The D istrictm ay nothave received the low estpossible coston the m etersand m ay notbe able to obtain financing forthe purchase since the contractw as notproperly bid. R econ)m endation: I recom m end that the D istrict adhere to the bid law s on all future purchases. M anagem ent's R esponse: The D istrict com m issioners visited other w ater districts to inquire about the electronic w ater m eters in use atthat district. A fter the visit,the com m issioners recom m ended the purchase of the new m eters and supporting com puter softw are. Representation from Louisiana U tilities cam e to the board m eeting to present inform ation on m eters. Pine H illw ater W orks D istrictn o.8 has done business w ith Louisiana U tilities for m any years w ith good results. Com m ission signed proposalto purchase m eters and installation from Louisiana U tilities. A tthis tim e,the com m issioners w ere so "caughtup" getting the m eters thatthey did notthink of receiving bids. 27

29 P.O,BO X SHREV EPORT.LOUISIANA C O R R EC TIV E A C TIO N PL A N Septem ber 28,2000 Pine lfil]w ater W orks D istrictn o.8 respectively subm its the follow ing corrective action plan forthe year ended July 31,2000. D.L.Butler,CPA 222 Florida Street,Suite 101 Shreveport,lxm isiana A uditperiod: July 31,2000 T ile findings from the July 31,2000 schedule of findings are discussed below. The findings are num bered consistently w ith the num bers assigned on the schedule FINI)ING SFINAN CIAL STA TEM EN T A UD IT FIN D IN G N O, Recom m endation." The D istrictshould m ake inform ation available priorto closing outthe yearso thatauditprocedures m ay begun Action Taken The ofi ce m anager has been instructed to continue m aking inform ation available prior to closing outthe year

30 CO RRECTIV F.A C TIO N PLA N PA G E 2 IN D IN G N O Recom m endation: The D istrictshould adhere to allbid law s on allfuture purchases. Action Taken: The com m issioners w illreview the requirem ents forbids so thatallcom m issioners w illbe aw are of the exactrequirem ents pertaining to bids. The ofi ce m anager w illbe m ade aw are of these requirem ents,also. If yon have may questions regarding this plan,please callg erald K ent at (318)