I=tE'C ~;'IV E D TO W N O F SAR EPTA , LO U ISIAN A AN N UA L FINANCIAL REPO R T JU N E 30, U nder provisions efstate law,this

Transcription

1 O FH CJA L FILE COPY (Xerox necessary copy ~nd PI~,CE f;ack in ~f"f~ I=tE'C ~;'IV E D TO W N O F SAR EPTA, LO U ISIAN A AN N UA L FINANCIAL REPO R T JU N E 30, 1998 U nder provisions efstate law,this report is a pub }c docum ent, A copy ofthe reporthas been subm itted to the audited, or review ed, enti;ly and oth~;rappropriate public officials, The repod,is ~vailabie for pub!it inspection at the Baton Rouge ofice ofthe Legislative Auditor and,w he;re appropriate,at the office of the parish clerk ofcourt. Release Dat

2 TOW N OF SAREPTA,LOU ISIAN A A nnualfinancialreport Y earended June 30,1998 TABLE OF CON TEN TS Va _ a~ ACCOUN TAN T'S COM PILATION REPORT IN D EPEN D EN T A CCO UN TAN T'S REPO RT ON A PPLY IN G A G REED -U PON PRO CEDU RES LOUISIANA ATTESTATION QUESTIONNAIRE G EN ERA L PU RPO SE FIN A N CIA L STA TEM EN TS (COM BINED STATEM ENTS -OVERVIEW ) Com bined Balance Sheet-A llfund Typesand A ccountg roups Com bined Statem entof Revenues,Expenditures, and Changesin Fund B alances-a llg overnm ental Fund Types Com bined Statem entof Revenues,Expenditures,and Changesin Fund Balances-Budget(GAAP Basis)and A ctual-g eneraland SpecialRevenue Fund Types N otesto FinancialStatem ents FIN AN CIAL STATEM EN TS O F IN DIVIDUAL FUN D S AN D ACCO UN T GROU PS G eneralfund: Balance Sheet Statem entof Revenues,Expenditures,And Changes in Fund Balance-Budget(GAAP Basis)and Actual Statem entof Expendituresby Departm entcom pared to Budgel(GAAP Basis) SpecialRevenue Funds: Com bining Balance Sheet Com bining Statem entof Revenues,Expenditures, and Changesin Fund Balances

3 TOW N OF SAREPTA,LOU ISIAN A A nnualfinancialreport Y earended June 30,1998 TA BLE O F CON TEN TS (Continued) pa~e SalesTax Fund - Statem entof Revenues,Expenditures,and Changes in Fund Balance-Budget(GAAP Basis)and Actual Sew ero perating Fund - Statem entof Revenues,Expenditures,and Changes in Fund Balance-Budget(GAAP Basis)and Actual D ebtservice Fund: B alance Sheet Statem entof Revenues,Expenditures, and Changesin Fund Balance CapitalProjectsFund B alance Sheet Statem entof Revenues,Expenditures and Changesin Fund Balance G eneralfixed A ssetsa ccountgroup: Slatem entof G eneralfixed A ssets Statem entof Changesin G eneralfixed A ssets

4 MICH EL W W IS[,C PA CARLOS [ ~ RTIN,C PA DAVID W,TIN~ EY,C P.A KRISTINE J HARPER,C P.A M KENT CRAFT.CP.A JAM IESO N,W ISE & M A RTIN A PROFESSIONAL ACCOUNTING CORPORATION 601MA IN STREET P.O.BOX 897 M INDEN,LOU ISIANA (318) FAX (318) E-MAlL JW CW IDE NET WM.P[ARCE JAMIESON.CEA.(1991b MEMBERS AMERICAN INSTITUTEOF CERTIFIED PUBLIC ACCOUNIANTS $0CI~TY OfLOUISIANA CERTIFlED PUBLIC ACCOUNTANTS A CCO UN TAN TS'CO M PILATION REPO RT Tile H onorable Pam ela D orsey,m ayor,and the M em bersof the Board of A lderm en Tow n of Sarepta,Louisiana W e have com piled the accom panying general purpose financial statem ents of the Tow n of Sarepta, Louisiana as of June 30, 1998, and for the year then ended, in accordance w ith Statem entson StandardsforAccounting and Review Services issued by the A m erican Institute of Certified Publie A ccountants. A com pilation is lim ited to presenting in the form of financialstatem ents information thatistle representation of m anagem entof the Tow n of Sarepta. W e have notaudited or review ed the accompanying generalpurposefinancialstatementsand,accordingly,do notexpressanopinion orany otherform of assurance on them. In accordance w ith the Louisiana Governnlental.4uditG uide and the provisionsof state law,w e have issued a report,dated D ecem ber28,1998,on the resultsof ouragreed-upon procedures. M inden,louisiana D ecem ber28,1998

5 MIC~U,EL W V,'*SE,C PA ~ RLOS E M~RTIN C PA DAVID W,TINSLEY,C PA KRISTINE J HARPER,C PA M KE~ C~,C P.A JA M IESO N. W IS E & M A RTIN A PROFESSIONAL ACCOUNTING CORPORATION 601MA IN STREET P.O.BOX 897 M INDEN,LOUISIANA (318) FAX {318} JW CW lde NET IN D EPEN DEN T A CCO UN TAN T'S REPO RT ON A PPLY IN G A G REED -U PON PRO CEDU RES wm.pearcejam~eson,c ~A.1~99" MEMBERS AMERICAN INSTI~rUTE OF C~ RTIFIED PUBLIC ACCOUN'rANTS ~ CIETY OFLOUISIANA CERTIFIED PUBLIC AC~ UN]ANIS To the H onorable Pam ela D orsey,m ayor,and the M em bersof the Board of A lderm en Tow n of Sarepta,Louisiana W e have perform ed the procedures included in the Louisiana Governm enta udit G uide and enum erated below,w hich w ere agreed to by the m anagem entof the Tow n of Sarepta and the Legislative A uditor,state of Louisiana,solely to assistthe users in evaluating m anagem ent's assertionsaboutthe Tow n of Sarepta's com pliance w ith certain law s and regulationsduring the yearended June30,1998,included in the accompanying LouisianaA testation Questionnaire. This agreed-upon procedures engagem ent w as perform ed in accordance w ith standards established by the A m erican Institute of Certified Public A ccountants. The sufficiency of these procedures is solely the responsibility of the specified users of the report. Consequently,w e m ake no representation regarding the sufficiency of the procedures described below,either for the purpose forw hich thisreport hasbeen requested orforany otherpurpose. Public Bid Law 1. Selectallexpendituresm ade during the yearform aterialand suppliesexceeding $5,000,or public works exceeding $50,000,and determ ine whether such purchases were m ade in accordancewith LSA R.S.38: (thepublicbid law). W e exam ined the expenditures,in the above am ounts,m ade during the year ended June 30,1998,and noted thatthe applicable expenditureshad been m ade in accordance w ith the Public B id Law. C ode of Ethicsfor Public O fi cialsand Public E m nlovees 2. Obtain from m anagem ent,a listof the im m ediate fam ily m em bers of each board m em beras defined by LSA R.S.42: (the code of ethics),and a listof outside business interestsof allboard m em bersand em ployees,asw ellastheirim m ediate fam ilies. M anagem entprovided usw ith the required list. 3. O btain from m anagem ent a listing of all em ployees paid during the period under exam ination. M anagem entprovided us w ith the required list

6 4. Determ ine whether any of those employees included in the listing obtained from managementin agreed-upon procedure (3)werealso included on thelisting obtained from managementin agreed-upon procedure (2)asimmediatefamily members. N one of the em ployees included on the list of em ployees provided by management (agreed-upon procedure (3) appeared on the llstprovided by managementin agreed-upon procedure (2). Budgeting 5. O btain a copy of the legally adopted budgetand allam endm ents M anagem entprovided usw ith copiesof the originalbudgetand allam endm ents 6. Trace the budgetadoption and am endm entsto the m inute book W e traced the budget adoption and budgetam endm ents to the m inutes of the Board of A lderm en,which indicated thatthe budgetand the am endm entswere adopted by the Board of A ldermen of the Tow n of Sarepta. 7. Com pare the revenues and expenditures of the final budget to actual revenues and expendituresto determ ine if actualrevenues orexpenditures exceed budgeted am ounts by m ore than 5%. W e noted no instances w hereby actualrevenues or expenditures varied unfavorably by 5% or m ore. A ecountin~ and R enortin~ Random ly select6 disbursem entsm ade during the period underexam ination and: a) Tracepaymentsto supporting documentation asto properamountand payee W e exam ined supporting docum entation for each of the six selected disbursem ents and found thatpaym entw asforthe properam ountand m ade to the correctpayee. b) Determineif paymentswere properly coded to thecorrectfund and generalledger account;and A llsix paym ents were properly coded to the correctfund and generalledger account.

7 c) Determinewhetherpaymentsreceived approvalfrom properauthorities Scanning the m inut, _.,,w e found thatallexpenditures foreach m onth w ere approved by the Board attheir regular m onthly m eeting. A ll6 checks were signed by the Town Clerk,the M ayor,and a m em berof the Board of A lderm en to indicate paym entapproval. M eetings 9. Exam ine evidence indicating thatagendas form eetings recorded in the m inute book were posted oradvertised asrequired by LSA R.S.42:1-42:12 (theopen meeting law). The Tow n postsallagendas,foreach m eeting,on the bulletin board in frontof the M unicipalbuilding in Sarepta. M anagem entasserted to usthatallagendas had been properly posted. D ebt 10.Exam ine bank deposits forthe period under exam ination and determ ine w hether any such depositsappearto be proceedsof bank loans,bonds,orlike indebtedness. W e inspected records of cash receipts and bank deposits for the period under exam ination and noted no depositsw hich appeared to be proceedsof bank loans, bonds,orlike indebtedness. A dvancesand Bonuses 11.Exam ine payrollrecordsand m inutesforthe yearto determ ine w hetherany paym entshave been m ade to em ployeesw hich m ay constitute bonuses,advances,orgifts. A reading of the m inutes of the Tow n for the year indicated no approvalfor paym entsw hich m ay constitute bonuses,advances,orgifts. W e also inspected payroll records for the year and noted no instances w hich w ould indicate paym entsto em ployeesw hich w ould constitute bonuses,advances,orgifts. W ewerenotengaged to,and did not,perform an examination,the objectiveof which would be the expression of an opinion on m anagem ent's assertions. A ccordingly,w e do notexpresssuch an opinion. H ad w e perform ed additionalprocedures,other m atters m ighthave com e to our attention thatw ould have been reported to you. This report is intended solely for the use of m anagem ent of the Tow n of Sarepta and the Legislative A uditor,state of Louisiana,and should notbe used by those w ho have notagreed to the procedures and taken responsibility forthe sufficiency of the procedures fortheirpurposes. H ow ever,thisreportisa m atterof public record and itsdistribution isnotlim ited. M inden,louisiana ~ D ecem ber28,1998

8 Wise & Martin 601 Main Street LO UISIANA ATTESTATIO N Q UESTIO NNAIRE (ForA testation Engagem ents ofgovernm ent) November 2~ ]998 (Date Transmited) Minden,LA (Auditors) In connection with yourcompilation ofourfinancialstatements as of[date]and forthe yearthen ended,and as required by Louisiana Revised Statute 24:513 and the Louisiana G ovem m entala uditg uide,w e m ake the fo lowing representations to you. W e acceptfullresponsibility forourcom pliance w ith the fo low ing law s and regulation and the internalcontrols overcom pliance w ith such law s and regulations. W e have evaluated ourcom pliance w ith the fo low ing law s and regulations priorto m aking these representations. These representations are based on the inform ation available to us as ofnovember 2, 1998 (date ofcom pletion/representations) Public B id Law Itis true thatw e hsve com plied w ith the public bid law,lsa-rs Title 38:2212, and, w here applicable,the regulations ofthe Division ofadm inistration,state Purchasing O fi ce.. Yes[~ No[ ] C ode of Ethics forpublic O fficials and Public Em ployees Itis true thatno em ployees oro ficials have accepted anything ofvalue, w hetherin the form ofa service,loan,orprom ise,from anyone thatw ould constitute a violation of LSA-R S 42: ~ '" ~ Yes ['-/1"No [ ] Itis true thatno m em berofthe im m ediate fam ily ofany m em berofthe governing authority,orthe chiefexecutive ofthe governm entalentity,has been em ployed by the governmentalentity afterapril1,1980,undercircumstances thatwould constitute a violation oflsa-rs 42:1119. Yes[v~'No[] B udgeting W e have com plied w ith the state budgeting requirem ents ofthe LocalG overnm ent BudgetAct(LSA-RS 39: )orthe budgetrequirements oflsa-rs 39:34. Yes [v]"no [ ] A ccounting and R eporting A lnon-exem ptgovernm entalrecords are available as a public record and have been retained foratleastthree years,as required by LSA-RS 44:1,44:7,44:31, and 44:36. Yes[~ 'No[ ]

9 W e have filed ourannualfinancialstatem ents 33:463,and/or39:92,as applicable. in accordance w ith LSA-RS 24:514, Yes [b/]no [ ] W e have had ourfinancialstatem ents audited orcom piled in accordance w ith LSA-RS 24:513. Yes[v/]No[ ] M eetings W e have com plied w ith the provisions ofthe O pen M eetings Law,provided in RS 42:1 through 42:12. Yes[~'No[ ] D ebt Itis true w e have notincurred any indebtedness,otherthan creditfor90 days oriess to m ake purchases in the ordinary course ofadm inistration,norhave w e entered into any lease-purchase agreem ents,w ithoutthe approvalofthe State Bond C om m ission,as provided by A rticle V II,Section 8 ofthe 1974 Louisiana C onstitution,a rticle V l,section 33 ofthe 1974 Louisiana Constitution,and LSA-IRS 39: :65./ Yes [v']no [ ] A dvances and Bonuses Itis true w e have notadvanced w ages orsalaries to em ployees orpaid bonuses in violation ofa rticle V II,Section 14 ofthe 1974 Louisiana Constitution,LSA-RS 14:138 and A G opinion Yes[k/~No[] W e have disclosed to you a lknow n noncom pliance ofthe foregoing laws and regulations,as w e las any co ntradictions to the foregoing representations. W e have m ade available to you docum entation relating to the foregoing law s and regulations. W e have provided you w ith any co m m unications from regulatory agencies orother source s co nce rning any possible nonco m pliance w ith the fore going laws and regulations,including any com m unications received betw een the end ofthe period underexam inatio, and the issuance of this report. W e acknow ledge ourresponsibility to disclose to you any know n noncom pliance w hich m ay occursubsequentto the 1172/98 Date 11/2/98 ]1/2/98 Date Date

10 G EN ERA L PU RPO SE FIN AN CIAL STA TEM EN TS (COM BINED STATEM ENTS -OVERVIEW )

11 l o ~ c~ Lt~ it~ Lr~ ~

12 Revenues: Taxes Licensesand perm its Intergovem m ental Finesand forfeits Charge forservices Interest M iscellaneous TOW N OF SAREPTA,LOU ISIAN A Combined Statem entof Revenues,Expenditures,and Changesin Fund Balan ce -A llgovern m entalfund Types YearEnded June 30,1998 General $ 67,372 21,295 8,351 1,383 4,383 3,461 Special Revenue 31,340 57,500 6,239 D ebt Serv ice 747 Capital Project 38,821 7 Totals (M emorandum Only) 98,712 21,295 47,172 1,383 57,500 11, Totalrevenues ,899 Expenditures: Current- G eneralgovernm ent Public safety - Police Specialrevenue -operating Capitaloutlay D ebtserv ice - Principalretirem ent Interestand fiscalcharges 69,747 15,910 3,955 47,134 1,575 8, ,822 69,747 15,910 47,134 44,352 8, Totalexpenditures Excess(deficiency)ofrevenues overexpenditmes 16,633 46,370 (7,893) Otherfinancing sources(uses): Operating transfersin O perating transfersout Totalotherfinancing sources(uses) 8,640 8,640 (8,640) Excessof revenuesand othersources overexpendituresand otheruses 16,633 37, Fund balance,beginning of year 121, ,922 19,503 55, ,681 Fund balance,end of year $137, ,652 20, ,797 See accom panying notesand accountant'sreport.

13 TOW N OF SAREPTA,LOUISIANA Com bined Statem entof Revenues,Expenditures,and Changes in Fund Balanee-Budget(GAAP Basis)and Actual G eneraland SpecialRevenue Fun d Types YearEnded June 30,1998 Revenues; Taxes Licensesand perm its lntergovem m ental Finesand forfeits Interest Charge forservices 1% salesand use lax M iscellaneous Totalrevenues Budget $ 66,290 21,290 8,350 1,3g , ,311 GeneralFund Actual 67,372 21,295 8,351 1,383 4,383 3, ,245 Variance - Favorable ~ (Unfavorable) 1, ,934 Expenditures: G eneralgovernm ent Public safety: Police Specialrevenue -operating Capitaloutlay Totalexpenditures 84,455 15,900 3, ,311 69,747 15,910 3,955 89,612 14,708 (10) Excess(deficiency)ofrevenuesover expenditures 16, Otherfinancing sources(uses): Operating transfersin O perating transfersout Totalotherfinancing sources(uses) Excessof revenuesand other sources overexpenditu resand otheruses Fund balance,beginning of year Fund balance,ending ofyear 121, ,256 16,633 16,633 $121, ,889 16,633 See accom panying notesand accountant'sreport.

14 SpecialRevenue Fund Actual Variance - Favorable (Unfavorable) 4,200 58,000 23,000 85,200 6,239 57,500 31,340 2,039 (500) ,500 21,060 76,560 47,134 1,575 48,709 8,366 19A , (8,640) (8,640) (8,640) (8,640) 37, , ,922 37,730

15 TOW N OF SAREPTA LOUISIAN A N otes to FinancialStatem ents June 30,1998 The Tow n of Sarepta isincorporated underthe provisionsof the Law rason A ct.the Tow n is located in the Parish of W ebster,being in the northw estcornerof the State of Louisiana. Elected officialsofthetown ofsarepta areamayor,five(5)aldermen,and a chiefofpolice, who are elected every fouryears.the affairsof the Town are conducted and m anaged by the m ayorand the board of alderm en. Sum m ary of sienificantaccountin~ oolicies A. B asis of presen'talion -The accounting and reporting policiesof the Tow n of Sarepta conform to generally accepted accounting principlesasapplicable to govern m ents. Such accounting and reporting procedures also conform to the requirem entsof Louisiana Revised Statutes24:517 and the guidessetforth in the Louisiana M unicipala uditand A ccounting G uide,and to the industry auditguide,a uditsof State and Loca G overnm entalu nits. B. Reporting entity -Thisreportincludesallfundsand accountgroupswhich are controlled by ordependenton the Town executive and legislative branches(the M ayorand Board of Aldermen).Controlby ordependence on thetown wasdetermined on the basisof budgetadoption,taxing authority,authority to issue debt,election orappointmentof governing body,and othergeneraloversightresponsibility. GovernmentalAccounting StandardsBoard (GASB)StatementNo.14 established criteria fordeterm ining w hich com ponentunitsshould be considered partof tbe Tow n of Sarepta forfinancialreporting purposes. The basic criterion forincluding a potential com ponentunitw ithin the reporting entity isfinancialaccountability.the GASB has setfortb criteria to be considered in determ ining financialaccountability.thiscriteria include:

16 TOW N OF SAREPTA LOUISIAN A N otesto FinancialStatem ents June 30, Appointing a voting majority of an organization'sgoverning body and a) Theability ofthemunicipality to imposeitswillon thatorganization and/or b) Thepotentialfortheorganization to providespecificfinancialbenefits to orim pose specific financialburdenson the m unicipality. 2. Organization forwhich themunicipality doesnotappointa voting majority butare fiscally dependenton the m unicipality. 3. O rganizationsforw hich the reporting entity financialstatem entsw ould be m isleading if data of the organization isnotincluded because of the nature orsignificance of the relationship. Based on tbe forgoing criteria,there w ere no entitiesthatw ere determ ined to be a com ponentunitof the Tow n of Sarepta. C. Fund accounting -The accountsof the Town of Sarepta are organized on the basisof fundsand accountgroups,each of w hich isconsidered a separate accounting entity. The operationsof each fund are accounted forw ith a separate setof self-balancing accountsthatcom prise itsassets,liabilities,fund equity,revenues,and expenditures,or expenses,asappropriate. G overnm entresourcesare allocated to and accounted forin individualfundsbased upon the purpose forw hich they are to be spentand the m eans by w hich spending activitiesare controlled.the variousfundsare grouped,in the financialstatem entsin thisreport,into categoriesasfollow s: G overnm entalfunds- G eneralfund -The G eneralfund isthe generaloperating fund of the Tow n.itisused to accountforallfinancialresourcesexceptthose required to be accounted forin anotherfund.

17 TOW N OF SAREPTA LOUISIANA N otesto FinancialStatem ents June 30,1998 Specialrevenue funds-specialrevenue fundsare used to accountforthe proceedsof specific revenue sources(otherthan specialassessmentsformajorcapitalprojects)that are legally restricted to expendituresforspecific purposes. D ebtservice funds -D ebtservice fundsare used to accountforthe accum ulation of resourcesfor,and the paym entof,generallong-term debtprincipal,interest,and related COSTS. CapitalProjectsFunds-Capitalprojectsfundsaccountforfinancialresourcesreceived and used forthe acquisition,construction,or im provem entof capitalfaeililiesnot reported on othergovernm entalfunds. D. Basisof accounting -Basisof accounting refersto w hen revenuesand expendituresor expensesare recognized in the accountsand reported in the financialstatem ents. Basis of accounting relatesto the tim ing of the m easurem entsm ade,regardlessof the m easurem entfocusapplied. A llgovernm entalfundsare accounted forusing the m odified accrualbasisof accounting. Theirrevenuesare recognized w hen they becom e m easurable and available asnetcurrentassets.m ostrevenuesare recorded w hen cash isreceived. Taxpayer-assessed incom e,gross receipts,and sales taxes are considered "m easurable" w hen in the handsof interm ediary collecting governm entsand are recognized asrevenue atthattim e. Federaland state grantsare expenditure -driven and revenuesare recognized w hen the grantexpendituresare incurred. W ith the m odified accrualbasisof accounting,expendituresare generally recognized w hen the related fund liability isincurred,exceptthatprincipaland intereston general long -term debtisrecognized w hen due. Purchase of variousoperating suppliesare regarded asexpendituresatthe tim e purchased,and any inventoriesof such suppliesare notrecorded asassetsatthe close of the fiscalyear.

18 TOW N OF SAREPTA LOU ISIAN A N otesto FinancialStatem ents June 30,1998 Prepaid expenses,such asinsurance costs,are notrecorded asassets. E. Budgetand budeetarv accountin~ The Tow n follow sthese proceduresin establishing the budgetary data reflected in these financialstatem ents a) TheM ayorand BoardofAldermen prepare aproposed budget. b) Aftercompletion ofalaction necessary to finalizeand implementthebudget,the budgetisadopted through passage of an ordinance. c) Budgetary amendmentsinvolving the transferof fundsfronaonedepartment, program orfunction to another,orinvolving increasesin expendituresresulting from revenuesexceeding am ountsestim ated,require the approvalof the Board of A lderm en. d) Allbudgetary appropriationslapseattheend ofeach fiscalyear e) BudgetsfortheGeneraland SpecialRevenueFundsareadopted on abasis consistentwith generally accepted accounting principles(gaap).budgeted am ountsin the accom panying statem entsare asam ended w ith the approvalof the Board of A lderm en. t) BudgetcomparisonsarenotpresentedfortheCapitalprojectfunddueto the restrictionsof these fundsforthe purpose authorized by the Louisiana Com m unity D evelopm entblock G rantfrom w hich the resourcesw ere derived. Ẹncum brances-the Town doesnotem ploy encum brance accounting in the governm entalfunds.m anagem entdoesnotbelieve thatthe use of encum brance accounting w ould serve any significantbenefitforbudgetary purposes. G. Cash and cash equivalentsand investm ents-forpurposesof the financialstatem ents, cash and cash equivalentsinclude cash,dem and deposits,and certificatesof deposit. Cash and cash equivalentsare stated atcost. 14

19 TOW N OF SA REPTA LOUISIAN A N otesto FinancialStatem ents June 30,1998 Cash includesam ountsin dem and deposits,interest-bearing dem and deposits,and m oney m arketaccounts. Cash equivalentsinclude am ountsin tim e depositsand those investm entsw ith originalm aturitiesof 90 daysorless.understate law,the Town m ay depositfundsin dem and deposits,m oney m arketaccounts,ortim e depositsw ith state banksorganized underlouisiana law and nationalbankshaving theirprincipaloffices in Louisiana. U nderstate law,tile Tow n m ay investin U nited Statesbonds,treasury notes,or certificates. These are classified asinvestm entsiftbeiroriginalm aturitiesexceed 90 days;how ever,if the originalm aturitiesare 90 daysorless,they are classified ascash equivalents. Investm entsare stated atcost. H. Bad debts-the Tow n usesthe directcharge -off m ethod of accounting for uncollectible ad valorem taxesand sew erreceivables,asthese am ountsare im m aterial to the financialstatem ents. Fixed assetsand long-term liabilities-the accounting and reporting treatm entapplies 1o the fixed assetsand long-term liabilitiesassociated w ith a fund are determ ined by its m easurem entfocus. A llgovernm entalfund type operationsare accounted foron a spending or"financial flow " m easurem entfocusand only currentassetsand currentliabilitiesare generally included on theirbalance sheets. Fixed assetsused in governmentalfund lypeoperations(generalfixed assets)are accounted forin the G eneralfixed A ssetsa ccountg roup,and are recorded as expendituresin the governm entalfund typesw hen purchased. The Tow n haselected to capitalizepublicdomain ("infrastructure")fixed assetsconsisting ofcertain im provem entsotherthan buildings,including the ballpark lighting system.n o depreciation hasbeen provided on generalfixed assets. Long-term liabilities expected to be financed from governm entalfunds are accounted forin the G enerallong-term D ebta ccountg roup.

20 TOW N OF SAREPTA LOUISIAN A N otesto FinancialStatem ents June 30,1998 A llfixed assetsare stated athistoricalcostorestim ated historicalcostif actual historicalcostisnotavailable. J. A ccum ulated unoaid vacatio notrecorded asa liability - D ue to im m ateriality,accum ulated unpaid vacation is K. Fund equity - Reserves Reservesrepresentthose portionsof fund equity notappropriable forexpendituresor legally segregated fora specific future use. D esignated Fund Balance D esignated fund balance representtentative plansforfuture use of financialresources L. Totalcolum nson com bined statem ents-totalcolum nson com bined statem entsare captioned "M em orandum O nly" to indicate thatthey are presented only to facilitate financialanalysis.data in these colum nsdo notpresentfinancialposition,resultsof operations,orchangesin financialposition in conform ity w ith generally accepted accounting principles. N eitherare such data com parable to a consolidation.interfund elim inationshave not been m ade in the aggregation of thisdata. A d valorem taxesatach asan enforceable lien o lproperty asof January 1of each year. Taxesare levied by the Tow n in Septem beroro ctoberand are actually billed to the taxpayersin N ovem ber.b illed taxesbecom e delinquenton January 1of the follow ing year Revenuesfrom ad valorem taxesare budgeted in the yearbilled.

21 ToW N O F SAREPTA LOU ISIAN A N otesto FinancialStatem ents June 30,1998 The Tow n billsand collectsitsown property taxes,using the assessed valuesdeterm ined by the tax assessorof W ebsterparish. Forthe yearended June 30,1998 taxesof m illsw ere levied o lproperty w ith assessed valuationslotaling $2,450,400 and w ere dedicated asfollow s: G eneralcorporate purposes Streets,drainage,parksand recreation Totalad valorem taxeslevied were $50, m ills m ills m ills 3. Cash and cash eouivalentsand investm ents AtJune 30,1998,the Town had cash and cash equivalentsw ith book balances totaling $328,537,asfollow s: Pety cash funds Interest-bearing dem and deposits Certificatesof deposit $ , ,000 Total $~ These deposits are stated atcost,which approxim atesm arket.understate law,these deposits(orthe resulting bank balances)mustbesecured by federaldepositinsuranceor the pledge of securitiesow ned by the fiscalagentbank.the m arketvalue of the pledged securitiesplusthe federaldepositinsurance m ustatalltim esatleastequalthe am ounton depositw ith the fiscalagent.these securitiesare held in the nam e of the pledging fiscal agentbank in a holding orcustodialbank thatism utually acceptable to both parties.a t June 30,1998,the Town had $333,498 in depositsof collected bank balances.these depositsw ere secured from risk by $100,000 of federaldepositinsurance and $1,154,695of pledged securitiesheld by thecustodialbank in thename of the fiscalagentbank (GASB Category 3).

22 TOW N OF SAREPTA LOU ISIAN A N otesto FinancialStatem ents June 30,1998 Even though thepledged securitiesare considered uncollateralized (Category 3)underthe provisionsof GA SB Statem ent3,louisiana Revised Statute 39:1229 im posesa statutory requirem enton tile custodialbank to advertise and sellthe pledged securitiesw ithin ten daysof being notified by the Tow n thatthe fiscalagenthasfailed to pay deposited funds upon dem and. 4. lnterfund Transfers SalesTax Fund D ebtservice Fund Total Transfers From $8,640 Transfers To 8,640 $8, Chanaesin Fixed A ssets A sum m ary of changesin generalfixed assetsfollow s: Balance Balance June 30, June 30, 1997 A dditions D eletions 1998 Land Buildings Im provem entsother then buildings Sew erage system Construction in progress V ehicles Equipm ent-office and other $ 18, ,144 38, ,481 1,575 20,123 38,822 38,523 3,955 $ 18, ,144 38, ,056 38,822 20,123 42,478 Totalgeneral fixed assets $699,568 44,352

23 TOW N OF SAREPTA LOUISIAN A N otesto FinancialStatem ents June 30,1998 Long-term D ebt The follow ing isa sum m ary of bond transactionsof the Tow n of Sarepta forthe yearended June 30,1998: G eneral O bligation Bondspayable,June 30,1997 $8,000 Bondsretired f 8,000) Bondspayable,June 30,1998 $ 7. D edication of Proceeds-1% Salesand U se Tax O n February 2,1971,the electorsof the Tow n authorized a 1% salesand use tax. The revenues are dedicated to constructing,acquiring,extending,im proving,operating and m aintaining sew ersand sew erage disposalw orks,title to w hich shallbe in tile public. N etproceedsof the salesand use tax w ere pledged and dedicated to the retirem entof $100,000 of seweragesystem publicimprovementbondsdated November1,1971,(which w ere.fully paid of during theyearended June30,1996)and $60,000 ofbond Indebtedness dated June 1,1989,(which werefully paid of during theyearended June 30,1998.) H ow ever,on O ctober24,1987,the electorsof the Tow n authorized a rededication of the 1% Salesand U se Tax to be used forany law fulcorporate purposesuntilm arch 31,2027. PayrollTaxes Severalyearsago,Tow n ofi cialselected to be self-insured forunem ploym entcom pensation purposes;therefore,unem ploym enttaxesare notpaid to the Louisiana D epartm entof Labor.

24 TOW N OF SA REPTA LOUISIA N A N otes to FinancialStatem ents June 30, M ayorand A lderm en'ssalaries Y earended June M ayor's A lderm en Salary Salaries Pam D orsey M ichaela.corley Jef Franklin D anny D.H eckendorn D an'old M ca Ilister A nthony M ullins $ 4,900 1,300 1,275 1,300 1,250 1,275 Total $ ~,9~J) year2000 issue Y ear2000 isan issue arising from com putersbeing program m ed in prioryearsto use only two digits(undertheassumption thatthefirsttwo digitswould alwaysbe19)to identify the yearw hen processing date-sensitive inform ation. Thism ethod of identifying datescould cause problem sw hen processing inform ation w ith datesin the year2000 orlater.a sa result,the system sthatuse only tw o digitsto identify datescould processdata incorrectly or stop functioning altogether.the efectsof the year2000 problem isexpected to extend beyond system s thatproduce financialinform ation.itencom passesallcom putersystem s and any equipm ent thatisdependenton m ierochip technology. The effectof the year2000 issue upon the Town'sability to provide servicesand public safety to itscitizenshasnotbeen determ ined. N orhasthe efectof non-compliance with the year2000 by otherentitiesupon which tile Town m ay rely,such asvendors,grantors,serv ice providers,revenue collection entities,em ployersorcustom ers,been determ ined.a lso,the Tow n's system forpreparing financialstatem entsrelieson com puterized technology. Financialinform ation isprepared through the use of a vendoraccounting softw are w hich the Tow n intendsto replace w ith so tw are w hich is2000 com pliant.

25 TO W N O F SA REPTA LO U ISIAN A N otesto FinancialStatem ents June 30,1998 Forthe yearended June 30,1998,the Tow n incurred no m aterialrem ediation costs concern ing the year2000 issue.n o significantlossdue to im pairmentof equipm entthatis notyear2000 com pliantw asrecognized forthe yearended June 30,1998.

26 FIN AN CIAL STA TEM EN TS O F IN DIV ID U A L FUN D S AN D A CCOUN T G ROU PS

27 G EN ERA L FUN D To accountforresourcestraditionally associated w ith governm entsw hich are notrequired to be accounted forin anotherfund.

28 TOW N OF SAREPTA,LOUISIANA GEN ERA L FUN D Balance Sheet June 30,1998 A SSETS Cash Certificatesof deposit Totalassets $ 90, $ 140,269 LIABILITIES AN D FUN D BA LANCE Liabilities: Accountspayable Totalliabilities Fund balance: U nreserved,undesignated Totalliabilitiesand fund balance $ 2,380 2, $ 140,269 See accom panying notesand accountant'sreport. 22

29 TOW N OF SAREPTA,LOUISIANA GEN ERAL FUN D Statem entof Revenues,Expenditures,and Changes in FundBalance-Budget(GAAP Basis)and Actual YearEnded June 30,1998 Revenues: Taxes: Ad valorem Franchise Licensesand perm its: Occupationallicenses Intergovem m ental: Police equipm entgrant Tobacco taxes Finesand forfeits Interest Rentals A llother Totalrevenues Budget $ 49,000 17,290 Actual 50,074 17,298 21,290 21,295 3,560 4,790 1,380 3,600 2, ,311 3,560 4,791 1,383 4,383 2, ,245 Variance - Favorable (Unfavorable) 1,934 Expenditures: G eneralgovernm ent Public safety: Police Totalexpenditures 84,455 69,747 14,708 19, ,311 19,865 89,612 (9) Excess of revenuesover expenditures 16,633 16,633 Fund balance,beginning of year 121, ,256 Fund balance,end of year $121,256 $137,889 16,633 See accompanying notesand accountant'sreport. 23

30 To W N O F SAtLEPTA,LO U ISIAN A GENERA L FUND StatementofExpendituresby DepartmentsCompared to Budget(GAAP Basis) YearEnded June G eneralgovernm ent: Salaries: M ayor's salary A lderm en'ssalaries Othersalaries Payrolltaxes O ffice expenses Building m aintenance Legaland auditing Streetlights Utilitiesand telephone Insurance Street,equipm entand groundsm aintenance Publications D uesand subscriptions Parks and recreation M ayor'scourt Capitaloutlay Coroner'sfee Traveland convention Allother Totalgeneralgovernm ent Budset $ 4,900 6,4OO 11,220 2,580 2,550 1,370 3,050 11,900 6,500 5,700 7, ,515 7, , Actual 4,900 6,400 11,219 2,580 2,554 1,373 3,035 11,906 6,504 5,692 3, ,518 6, Variance - Favorable (Unfavorable) (4) (3) 15 (6) (4) 8 4,295 (5) (3) 1,077 (24) 9,450 (3) (86) Public safety: Police: Salaries Retirem ent Capitaloutlay Supplies Repairsand m aintenance A uto expense Totalpolice Totalpublic safety Totalexpenditures 12,000 1,400 3,956 1, ,000 1,403 3,955 1, O) 1 (7) 19,856 19,865 (9) 19,856 19,865 (9) $104,311 89,612~ 14,699 See acco m panying notesand accountant'sreport. 2l*

31 SPECIA L REV ENU E FUN D S Sales Tax Fund -To accountforthe receiptand use of proceedsof the Town's 1% salesand use tax. The revenuesare dedicated forany law fulcorporate purposes;however,the Town isclassifying them asspecialrevenue because the la x isthe source forpaying bond indebtedness. SewerOperating Fund -The Sew eroperating Fund isconsidered to be a specialrevenue fund ratherthan an enterp rise fund because the sewer service charge is intended to coveronly the routine operating and m aintenance costs of the system. Funds for the construction of the sew erage system w ere provided by grantsfrom the U.S.Environm entalprotection A gency and by generalobligation bonds,w hich are being retired w ith dedicated salestaxesand ad valorem taxes.

32 TOW N OF SAREPTA,LOU ISIAN A SPECIAL REVENU E FUN D S Com bining Balance Sheet June 30,1998 Sales Tax Sewer Operatin8 Totals ASSETS Cash Restricted cash -custom erdeposits Certificatesof deposit Accountsreceivable $ 58,315 36,523 3,174 70,000 3,263 94,838 3,174 70,000 3,263 Totalassets $ 58, , ,275 LIABILITIES AN D FUN D B ALAN CE Liabilities: Payable from restricted assetscustom erdeposits Accountspayable Totalliabilities $ 2, , Fund balance: Unreserved -undesignated Totalliabilitiesand fund balance 58, , ,652 $ 58, , ,275 See accom panying notesand accountant'sreport. 25

33 TOW N O F SAREPTA,LOUISIAN A SPECIAL REVENUE FUNDS Com bining Statem entof Revenues,Expenditures, and Changesin Fund Balance YearEnded June 30,1998 Revenues: Taxes Interest Sewerservice charges Totalrevenues Sales Tax $ 31, ,037 Sewer Operating 4,542 57,500 62,042 Totals 31,340 6,239 57,500 95,079 Expenditures: Operating Capitaloutlay Totalexpenditures 3,612 3,612 43,522 1,575 45,097 47, ,709 Excessofrevenues overexpenditures Otherfinancing (uses): Operating transfersout Totalotherfinancing (uses) 29,425 16,945 (8,640) (8,640) (8,640) (8,640) Excessof revenuesand othersourcesoverexpenditures and otheruses Fund balance,beginning of year Fund balance,end of year 20,785 16,945 37,730 37,530 92, ,922 $ 58, , ,652 See accom panying notesand accountant'sreport. 26

34 TOW N OF SAREPTA,LOUISIAN A SPECIAL REVEN UE FUN D SA LES TA X FUN D Statem entof Revenues,Expenditures,and Changesin Fund Balance-Budget(GAAP Basis)and Actual Year Ended June 30,1998 Revenues: Salestaxes Interest Totalrevenues Bud~;et $ 23, ,600 Actual 31,340 1,697 33,037 Variance - Favorable (Unfavorable) 8, Expenditures: Operating Capitaloutlay Totalexpenditures 3,900 11,060 14,960 3, ,612 11,348 Excessof revenuesover expenditures O therfinancing uses: O perating transfers: D ebtservice fund Tota lotherfinancing uses Excessofrevenuesand other sourcesoverexpenditures and otheruses Fund balance,beginning of year 8,640 29,425 (8,640) (8,640) (8,640) (8,640) 20,785 37,530 37, ,785 Fund balance,end of year $ 37,530 58,315 20,785 See accompan ying notesand accountant'sreport. 27

35 TOW N OF SAREPTA,LOUISIANA SPECIAL REVENUE FUND SEW ER OPERA TIN G FUND Statementof Revenues,Expenditures,and Changesin FundBalance -Budget(GAAP Basis)and Actual YearEnded June 30,1998 V ariance - Favorable Revenues: Sew ercharges Interest Totalrevenues $ 58,000 3,600 61,600 Actual 57,500 4,542 62,042 (Unfavorable) (500) Expenditures: Operating: Salaries U tilities Insurance Office and postage Truck expense M alntenanee and repairs Payrolltaxes Legal Allother Totaloperating expenditures 17,500 5,000 4,500 3,000 1,000 15,000 1, ,050 51,600 15,927 3,423 4,231 2, , , ,573 1, , ,078 Capitaloutlay Totalexpenditures 10,000 61,600 1,575 45, Excessof revenues overexpenditure~ 16)45 16,945 Fund balance,beginning of year 92,392 92,392 Fund balance,end of year $ 92, ,337 16,945 See accom panying notesand accountan t'sreport. 28

36 DEBT SERVICE FUN D S To accumulate moniesforpaymentof the 1989 $60,000 Certificate of Indebtedness,which isdue in annualinstallm ents,plusinterest,through m aturity in 1998.Debtservice isfinanced from proceedsof the Town's1% salesand use tax.the $60,000 Indebtednesswaspaid in fullduring the yearended June 30,1998.H owever,the Tow n hasdesignated these fundsto service debt w hich m ay be legally incurred in the future.

37 TOW N OF SAREPTA,LOUISIAN A D EBT SERV ICE FUN D Balance Sheet June 30,1998 SalesTax Sinking Fund A SSETS Cash Certificatesof deposit $ 10, Totalassets LIABILITIES AN D FUN D BALAN CE Fund balance: Designated fordebtservice Totalfund balance $ 20,250. $ 20,250 Totalliabilitiesand fu nd balance See accom panying notesand accountant'sreport.

38 TO W N OF SAREPTA,LOUISIANA D EBT SERV ICE FUN D Statem entof Revenues,Expenditures, and Changesin Fund Balance YearEnded June 30,1998 SalesTax Sinking Fund Revenues-interest Totalrevenues Expenditures: Principalretirem ent Interest Totalexpenditures $ , (Deficiency)ofrevenues overexpenditures O lherfinancing sources- Transfersfrom salestax fund Totalotherfinancing sources Excessof revenuesand other sourcesoverexpenditures Fund balance,beginning of year Fund balance,end of year See accom panying notesand accountant'sreport.

39 CA PITA L PRO JECTS FUN D To accountforlouisiana Com m unity D evelopm entblock Grantfundsto be used in the construction of sew ersyslem im provem ents.

40 TOW N OF SAREPTA,LOU ISIAN A CAPITA L PROJECTS FUN D Balance Sheet June 30,1998 ASSETS Cash Totalassets 6 6 LIABILITIES AN D FUN D BALAN CE Liabilities Fund balance: Reserved forcapitalprojects Totalliabilitiesand fund balance 6 6 See accompanying notesand accountant'sreport.

41 TOW N OF SAREPTA,LOUISIANA CAPITAL PROJECTS FUN D Statem entof Revenues,Expenditures, and Changesin Fund Balance Year Ended June LCDBG Revenues LCDBG Grant Otherrevenue Totalrevenues Expenditures: Adm inistrative Engineering Tota lexpenditures Excessofrevenues overexpenditures $ 38, ,828 11,757 27,065 38,822 6 Fund balance,beginning of year Fund balance,end of year 6 See accom panying notesand accountant's report. 32

42 G EN ERA L FIXED A SSETS ACCOUN T GROU P To accountforfixed assetsnotused in proprietary fund operations.

43 TOW N OF SAREPTA,LOUISIANA Statem entof G eneralfixed A ssets June 30,1998 G eneralfixed assets,atcost: Land Buildings Im provem entsotherthan buildings Sewerage system Construction in progress Vehicles Equipm ent,office and other Totalgeneralfixed assets $ 18, ,144 38, ,056 38,822 20,123 42,478. $743,920. Investm entin generalfixed assets: Generalobligation bonds Federaland/orstate fundsand grants Generalfund revenues Seweroperating and m aintenance fund Salestax fuud $376, ,469 99,860 35,049 6,333 Totalinvestm entin generalfixed assets See accompan ying notesand accountant'sreport. 33

44