hi:!:!: FINANCIAL REPORT OF THE VILLAGE OF PINE PRAIRIE,LOUISIANA FOR THE YEAR END ED DECEM BER 3 I, 2002

Transcription

1 hi:!:!: FINANCIAL REPORT OF THE VILLAGE OF PINE PRAIRIE,LOUISIANA FOR THE YEAR END ED DECEM BER 3 I, 2002 Underprovisions ofstate law,this reportis a public document.a copy ofthe reporthas beer~subm ited to the entity and otherappropriate public oficials,the reportis available forpublic inspection atthe Baton Rouge office ofthe Legislative Auditorand,where appropriate,atthe office ofthe parish clerk ofcourt.~,ea~e ~a,e

2 T IND EPEN D EN T AU D ITO R 'S REPORT 1-2 GEN ERA L PURPO SE FIN AN CIAL STA TEM ENT S (Combined Statements- Overview) Com bined Balance Sheet- A llfund Typesand A ccountg roups 3 Com bined Statem entof Revenues,Expenditures, and Chan gesin Fund Balance - A llg overnm ental Fun d Types 4 Com bined Statem entof Revenues,Expenditures,and Changes in Fund Bal an ces- Budgetan d A ctu al- A ll Governm entalfun d Types 5 Com parative Balan ce Sheet- Proprietary Fun d Typ e 6-7 Com parative Statem entof Revenues,Expenses,an d Chan ges in Retained'Earnings - Proprietary Fund Typ e 8 Com parative Statem entof Cash Flow s - Proprietary Fund Typ e 9 N otesto the Finan cialstatem ents SPECIA L REV ENUE FUN D S Com bining B alan ce Sheet Com bining Statem entof Revenues,Expenditures, an d Chan ges in Fun d Balan ce REPORT ON COM PLIA N CE AN D ON IN TERN A L CON TRO L O V ER FIN AN CIAL REPO RTIN G BA SED ON AN A UD IT OF FIN AN CIAL STA TEM EN TS PERFORM ED IN A CCORD AN CE W ITH G O V ERN M ENT AUD ITIN G STAN DARD S SCH ED U LE O F FIN D IN G S.. SCH ED ULE O F PRIOR YEA R FIND IN G S M AN A GEM ENT 'S CORRE CTIV E A CTION PLA N ACCOU NTA N T'S REPORT ON TH E A CCO M PAN Y IN G IN FORM A TION 28 ACCO MP A N Y IN G IN FORM ATIO N SU PPLEM EN TA L LETTER 29-31

3 M ICHAEL W.JOHNSON MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCC4JNTAk'TS (A PROFESSIONAL CORPORATION) 105 North 11th Street-PostOfice Box 529 EUNICE,LOUISIANA Phone (337) IN DEPEN D EN T A U D ITO R 'S REPO R T MEMBERSOC;ETY CF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS To the Board of A lderm an V illage of Pine Prairie,Louisiana Ihave audited the accom panying general-purpose financialstatem ents of the V illage of Pine Prai rie,lo uisian a,as of an d forthe year ended D ecem ber 31,2002,as listed in th e table of contents.these general-purpose finan cialstatem ents are the responsibility of th e Village of Pine Pra irie,louisiana's,m an agem ent. M y responsibility is to express an opinion on these general -purpose finan cial statem ents based on m y audit. I conducted m y audit in accordan ce w ith auditing stan dards genera lly accepted in the U nited States an d th e standar ds applicable to financialaudits contained in G overnm ent A uditing Stan dar ds,issued by th e Com ptroller G eneral of the U nited States. Those stan dar ds require th atiplan and perform the auditto obtain reasonable as suran ce about w hether th e finan cialstatem ents ar e free of m aterialm isstatem ent. An auditincludes exam ining, on a test basis, evidence supporting the am ounts an d disclosures in the finan cialstatem ents. An auditalso includes assessing the accounting principles used an d significantestim ates m ade by m an agem ent,as w ell as evaluating th e overa llfinan cial statem ent presentation. I believe that m y audit provides a reas onable basis for m y opini on. In m y opinion,the general-purpose financialstatem entsreferred to above presentfairly, in allm aterialrespects,th e finan cialposition of the V illage of Pine Prairie,Lo uisian a,as of D ecem ber31,2002,an d the resultsof itsoperationsan d cas h flow sof its proprietary fund types for the year then ended in conform ity w ith accounting principles generally accepted in the U nited Statesof Am erica. M y auditw as conducted forth e purpose of form ing an opinion on the generalpurp ose financialstatem ents taken as a whole. The com bining financialstatem ents listed in the table of contents are presented forpurposesof additionalan alysis an d ar e nota req uired partof the general-purpose finan cialstatem entsof the V illage of Pine Prairie,Lo uisiana. Such inform ation has been subjected to the auditing proceduresapplied in the auditofthe general pur pose finan cial statem ents and, in m y opinion, ar e fairly presented in all m aterialrespectsin relation to the generalpurpose finan cialstatem entstak en as a w hole an d,accordingly,iexpressno opinion on them.

4 In accordance w ith Governm enta uditing Standards,Ihave also issued m y reportdated July 29,2003,on m y consideration of the V illage of Pine Prairie,Louisiana's internal controloverfinancialreporting and m y testsof itscom pliance w ith certain provisionsof law s, regulations, co ntracts an d gran ts. That report is an integr al part of an audit perform ed in accordance w ith G overn m enta uditing Standards an d should be read in conjunction with thisreportin considering the resultsof my audit. M ichaelw.johnson Certified Public A ccountant Eunice,Louisian a July 29,2002

5 G EN ER AL PU R PO SE FINAN C IA L STA TEM EN TS (Combined Statements- Overview)

6 P A SSETS Cash on Deposit: Operating Accounts Savings& Certificatesof Deposit Property Taxes Receivable GrantsReceivable A/R,SewerFees Due from OtherFunds Restricted Assets,Savin gs Fixed A ssets,n etof Allowance for Depreciation (2002,$282,784) TOTAL ASSETS G overnm ental Fund Types _General $ 92, ,736 22,812 Special Revenue $230,042 45,849 39,504 15,000 7,658 41,869 Proprietary Fund Type Enterprise Fund $ 94, ,634 7,382 52,829 A ccount G roups General Fixed A sse~ 430,879 $1,802,595 $ $ Liabilities EQUITY Accoun ts Payable W ithholding & TaxesPayable Accrued InterestPayable Security D epositspayable NotesPayable - FmHA Due to O therfun ds TotalLiabilities Fun d Equity: Investm entin G eneral Fixed A ssets Contributionsfrom LCDBG (net of amortization forcapitalgrants) Fun d B alance/retain ed Earnings: R eserved for D ebtretirem ent Unreserved TotalFun d Balance/R etained Earnin gs TotalFund Equity TOTAL LIABILITIES AND FUND EQUITY 4,139 2,300 31,288 $35,427 4,324 $ 6, , ,640 $272,444 $272,444 $365,64O $365,640 $ 1, ,165 12, ,073 13,915 $319,977 $ 0 $ $1,802, ,105 58,110 $106,215 $624,183 $ 0 $1,802,595 The accom panying notesare an integralpartof thisstatem ent. 3

7 Revenues: Taxes:Property Franchise Sales Licenses Fines and Forfeits Prison Fees Grants Sale of Assets M iscellaneous TotalR evenues TH E Y E AR END ED D ECEM B ER 31 G overnm entalfund Types General Special Revenue $ 36,167 $ 42,425 31, ,420 26, , ,085 15, ,017 $ 424,836 15, $ 193,501 Total M em orandum Only) $ 78,592 31, ,420 26, , ,085 30, ,673 $618,337 Expenditures: Current: G eneralgovernm ent Public Safety StreetD epartm ent CapitalOutlay Tota lexpenditures: $ 84, ,212 11, ,465 $ 410,670 $ 97,052 10,508 3,707 $ 111,267 $ 181, ,212 21, ,172 $ 521,937 InterestIncom e Operating Trans fersin Operating TransfersO ut TotalOtherFinancing Sources/(Uses) $ 6,634 40,000 (51,718) $ (5,084) $ 4,393 49,679 (41,465) $ 12,607 $ 11,027 89,679 (93,183) $ 7,523 AN D $ 9,082 $ 94,841 $103, ,362 _ 270, ,161 $_272,444 $ $ The accom panying notesare an integralpartof thisstatement. 4

8 Revenues." Taxes:Property Franchise Sales Licenses Finesand Forfeits Prison Fees Grants Sale of A ssets M iscellan eous TotalRevenues G ENER AL FUN D Bur et Actual $ 36,000 21,000 27, ,000 95, ,250 $ 368,250 $ 36,167 31,129 26, , ,085 15, ,017 $424,836 SPECIAL REVENUE FUN D Budget A ctual $ 42,000 $ 42, , , $ 162,500 15, $193,501 Expenditures: Current: G eneralg overrlm ent Public Safety StreetD epartm ent DebtService CapitalOutlay Tota lexpenditures: $ 107, ,000 12, ,000 $ 576,850 $84, ,212 11, ,465 $410,670 $ 129,500 $ 97,052 24,200 10,508 72, ,750 3,707 $ 356,450 $111,267 InterestIncom e Operating Transfers In Operating Transfers Out TotalOtherFinancing Sources/(Uses) $ 2,500 (55,000) $ (52,500) $ 6,634 40,000 (51,718) $ (5,084) $ ,100 (5,000) $ 35,850 $ 4,393 49,679 (41,465) $ 12,607 FIN AN CIN G U SES $(261,100) $ 9,082 $(158,100) $ 94,841 Y EAR B 263, , , ,799 $ $ $ $ The accom panying notesare an integralpartof thisstatem ent.

9 CurrentA ssets: Cash,Operating Accounts Cash,Savings and CD 's Accounts Receivable,Netof Allowance foruncolectible (2002, $-0-;2001,$-0-) TotalCurrentAssets Restricted A ssets: Cash on D epositfor: N ote Sinking Fund Note Reserve Fun d N ote Contingency Fun d TotalRestricted A ssets Long-Term A ssets: Fixed Assets,NetofAccumulated Depreciation (2002,$282, ,$263,773) TotalLong-Term Assets TOTAL ASSETS 200 _...2 $ 94, , $460,452 $ 22,884 13, $ 52,829 $430~879 $430, $ ,737 $455,083 $ 22,485 12,476 14,754 $ 49,715 $433,707 $4 33,707 CurrentLiabilities: (Payable from CurentAssets) Accounts Payable W ithholding and TaxesPayable Accrued InterestPayable Security Deposits Payable Total (Payablefrom Restricted Assets) CurrentNotesPayable Total TotalCurrentLiabilities Long-Term Liabilities: Note Payable - FHA TotalLong-Term Liabilities $ 1, ,165 12,800 $ 25,989 $ 4,724 $ 4,724 $ 30,713 $275,349 $275,349 $ 1, ,609 11,525 $ 24,536 $ 4,571 $ 4,571 $ 29,107 $279,817 $279,817 (Continued) 6

10 ',y DECEM BER (Continued) Due to OtherFunds Due to SalesTax Fun d Due to GeneralFund Total TotalLiabilities $ 6,257 7,658 $ 13, $ 6,257 7,623 $ 13,880 Fund Equity: Contributionsfrom LCDBG (netof amortization forcapital grants) Reta ined Earnings Reserved fordebtretirem ent Unreserved Tota lretained Earn ings TotalFun d Eq uity $517,968 $536,689 48,105 58,110 $106,215 $624,183 45,144 33,868 $ 79,012 $615,701 TotalLiabilities and Fun d Balance The accom panying notesare an integralpartof thisstatem ent.

11 Revenues: SewerFees M iscellaneous Revenue TotalRevenues O perating Expenses: Dues & Fees Depreciation Expense Insurance Office Expense Rep airsan d M aintefiance Salaries Taxes M iscellan eous U tilities TotalOperating Expenses 2002 $ 63, $ 64,072 $ , ,179 2,172 12, ,667 7,016 $ 59, $ 62, $ 62,509 $ , ,347 4,704 8, ,031 6,080 $ 52,350 Operating lncome(loss) $ 4,611 $ 10,159 InterestRevenue InterestExpense Operating Transfers In TotalNon-Op erating Revenues/(Expenses) $ 14,413 (14,047) 3,504 $ 3,870 $ 22A02 (14,257) 4,476 $ 12,621 NetIncome(Loss) $ 8,481 $ 22,780 Add:Depreciation on fixed assets acquired by grantsexternally restricted forcapitalacquisitions an d cons truction thatreducescontributed capita l Increase/(Decrease)in Retained Earnings F 18,722 $ 27,203 79,012 $ ,722 $ 41,502 37,510 $ The accompanying notesare an integralpartofthisstatement.

12 ENTER PRISE FU N D EA R END ED D ECEM Netincoroe (loss)from operating activities Adjusti'nentsto reconcile netincome/(loss)to net cash provided (used)by ope rating activities: Depreciation/Am ortization (Increase)/Decreasein receivables Increase/(Decrease)in accountspayable Increase/(Decrease)in otheraccrued expenses Operating Transfers In Totaladjustments Netcash provided by operating activities ~2 $ 4,611 19,011 (645) 211 1,721 3,504 $ 23,802 $ 28, oo._!1 $ 10,159 17, ,476 $ 23,869 $ 34,028 activities: N ote principalpaym ents Paym ents for plantan d equipm ent Netcash provided by (used for)capitalan d related financing activities $ (4,314) (16,182) $ (4,105) (14,269) In terestreceived In terestpaid N etcash provided by in vesting activities N etin creas e in cash an d cash equivalents Cash and cash equivalents atbeginning of year Cash and cas h equivalents atend of year $ 14,413 (14,492) $ (79"/ $ 7, ,061 $ $ 22,402 (14,257) $ 8,145 The accom panying notesarc an integralpartof thisstatem enṭ 9

13 A N O TE A - SUM M A RY O F SIG NIFICAN T ACC O UNTING PO LICIES The V illage of Pine Prairie w as incorporated in 1959 under the provisions of the Law rason Act. The V illage operates under a M ayor-board of A lderm en form of governm ent. The financialstatem entsof th e V illage of Pine Prairie,Louisiana have been prepared in co nformity with generally accepted accoun ting principles (GAAP) as applied to governmentalunits. The GovernmentalAccoun ting Stan dards Board (GASB)isthe accepted standar d-setting body for establishing govern m entalaccoun ting and financial reporting principles. The m ore significan t of the govern m ent's policies ar e described below. Ṛ eporting Entity - In evaluating how to define the governm ent,for financialreporting purposes,m an agem ent has considered allpotentialcom ponentunits. The decision to include a potential com ponent unit in the rep orting entity w as m ade by applying the criteria set forth in G A AP. The basic - butnot the only - criterion for including a potentialcom ponentun itw ithin the reporting entity is the governing body's ability to exercise oversightresponsibility. Th e m ostsignifican tm anifestations of the ability to exercise oversightresponsibility include,butare notlim ited to,the selection of govern ing authority, the designation of m anagement, the ability to sign ificantly influence operations,an d accoun tability forfiscalm aters. A second criterion used in evaluating potentialcom ponentunits is th e scope of public service. Application of thi s criterion involvesconsidering whetherthe activity benefitsthe governm entan d/oritscitizens,or w heth er the activity is conducted w ithin the geographic bo un daries of the govern m ent an d is generally available to its citizens. A third criterion used to evaluate potential com ponentun its forinclusion orexclusion from th e reporting entity is the existence of specialfinan cing relationships,regar dless of w hetherthe govern m entis able to exercise oversigh tresponsibilities. Based upon the application ofthesecriteria,the Vilageof Pine Prairie had no other significan t m an agerial responsibility over an y other governm entalunitth atisnotincluded in the finan cialstatem ents. Fund A ccoun ting - The accoun ts of the V illage of Pine Prairie ar e organ ized in the basis of funds,w hich ar e considered a sep arate setof self-balan cing accountsthatcom prise its assets,liabilities,fu nd equity,revenues,an d expenditures,or expenses,as appropriate. G overnm entresourcesar e allocated to an d acco un ted forin individualfundsbas ed upon the purp oses forwhich they ar e to be spentan d the m ean sby w hich spending activities are controlled. The various fun ds are grouped,in the finan cialstatem entsin thisreport, into tw o govern m entalfund types,one proprietary fire d type,and an accountgr oup as listed below :

14 V ILLA G E O F PIN E PRA IRIE N O TES TO FIN AN C IAL STATEM EN TS,C O NT 'D. The G eneralfund is the generaloperating fund of the V illage. Itis used to accountforallfinancialresources exceptthose required to be accounted for in anoth erfund. SpecialR evenue Fun ds - Spec ialrevenue Fundsare used to accountforthe proceedsof specificsources(otherthan expendable trustsormajorcapitalprojects)thatare legaly restricted to expendituresforspecialpurposes. Proprietary Funds- U tility Fund - U tility Fun ds ar e used to accountfor th e proceed s of sew ercollec tion fees from th e sew ersystem com pleted in These feesare used to operate and m aintain th e sew ersystem an d pay the note from FHA. A c oun t G roups - Fixed Assets an d Long-Term Liabilities - The ac oun ting an d reporting treatm entapplied to th e fixed assetsan d long-term liabilitiesassociated w ith a fund ar e determ ined by its m eas urem entfocus. A ll govern m ental fund type operations are accounted for on a spending or "finan cial flow " m eas urem ent focus an d only current as sets an d current liabilities are generally included on th eir balan ce sheets. Fixed as sets used in governm ental fund type operations (GeneralFixed Assets)are ac counted for in th e G eneral Fixed A ssets A ccount Group, an d ar e recorded as expenditur es in th e governm entalfund typ es w hen purchas ed.the V illage has elec ted to cap italize public domain ("Infrastructure") fixed assets consisting of certain im provem ents. N o depreciation has been provided on generalfixed as sets. A llfixed as setsare recorded athistoricalcost. Long-term liabilities expected to be finan ced from G overnm entalfunds ar e accounted for in the G enerallong-term D ebta c ountg roup. The accoun t groups ar e not "funds". They are concern ed only w ith m eas urem entof finan cialposition.they ar e notinvolved w ith m eas urem entof resultsof operations. D epreciation of allexhaustible fixed assets used by Proprietary Funds is char ged as an expense againsttheir operations. Accum ulated depreciation is reported on Proprietary Fun d Balan ce Sheets. D epreciation has been provided over the estim ated usefu llives using the straightline m ethod. The estim ated usefullivesar e asfollow s:

15 V ILLA G E O F PINE PR AIRIE N O TES TO FIN A N CIAL STATEM ENTS,C O N T 'D. Sew erage U tility: D isposalplant Equipm ent 40 Y ears 10 Y ears Basisof A ccounting - Basis of A ccounting refersto w hen revenuesand expendituresor expenses are recognized in the accoun tsan d reported in th e FinancialStatem ents. Basis of A ccounting relates to th e tim ing of the m easurem ents m ade, regardless of the m eas urem entfocusapplied. A ll G overnm ental Funds and A gency Fun ds are accoun ted for using the M odified- A ccrual Bas is of A cco unting. Their revenues are recogn ized w hen they becom e m eas urable and available,as netcurrentas sets. Property taxes ar e recorded as revenue when levied even though a portion of th e taxes m ay be collec ted in subsequentyears. M iscellan eous revenues ar e recorded w hen received. Franchise Taxes, Sales Taxes, Inter-G overnm entalrevenue,an d InterestIncom e ar e accru ed,w hen their receiptoccurs soon enough afterthe end of the accounting period so as to be both measurable and available. Gross Sales Taxes ar e considered "m easurable" w hen collected an d ar e recognized asrevenue atthattim e. Expenditures are generally recognized underthe M odified-a c rualb asis of A c ounting when th e related fund liability isincurred. A llproprietary Fun ds ar e accoun ted forusing the A ccru albas is of Accounting. Their revenues ar e rec ogn ized w hen th ey ar e earned,an d th eir expenses ar e recognized w hen they are incurred. Budgets an d Budgetary A ccounting - The V illage follow s these establishing th e budgetary data reflec ted in these finan cialstatem ents: proced ures in The V illage clerk prepar es a proposed budgetand subm its sam e to the M ayor and Boar d of A lderm an no later than fifteen days prior to the beginning of each fiscalyear. 2 The budget is adopted through pas sage of an ordinan ce prior to the com m encem entof the fiscalyear forw hich th e budgetis being adopted. Budgetary am endm ents involving the tran sferof funds from one departm ent, program orfunction to an otheror involving increas e in expenditures resulting from revenues exceeding am ountsestim ated require the approvalof the Board of A lderrnen. 12

16 V ILL A G E OF PIN E PR AIR IE N O TES TO FINAN C IA L STATEM ENTS,C O N T 'D 4 A llbudgetary appropriationslapse atthe end of each fiscalyear Budgets for the Generaland SpecialR evenue Funds ar e adopted on a basis consistentwith generaly accepted accoun ting principles(gaap). Budgeted am ounts are as originally adopted,or as am ended from tim e to tim e by the Board of A lderm en. Investm ents- In vestm ents ar e in bank savingsaccountsand in certificates of deposit. Com parative D ata - Com parative totaldata for the prior year has been presented in the aec om panying finan cialstatem entsin order to provide an un derstanding of changes in th e Vilage'sfinan cialposition an d operations. However,comparative (i.e.,presentation of prioryear totalsby fund,l~q~e)data has notbeen presented in each of the statementssince theirinclusion w ould m ake th e statem ents un duly com plex and difi cultto read. Com parative data forth e prioryear is presented forthe year ended D ecem ber 31,2001 A lldata forthe currentyear ispresented for the year ended D ec em ber 31,2002. TotalColum ns on Finan cialstatem ents - O verview statem ents - overview ar e captioned m em orandum presen ted only to facilitate analysis. Totalcolum ns on th e finan cial only to indicate th at they ar e D ata in these colum ns do not present finan cial position an d results of operations in conform ity w ith generally accepted accoun ting principles. N either is such data com parable to a consolidation. Interfim d elim inations have not been m ade in the aggregation of th isdata. N O TE B - A D V A LO REM TAX ES A d valorem taxes attach as an enforceable lien on property asof M ar ch 16 of each year. Tax es ar e levied by the V illage in Sep tem ber or O ctober an d ar e actually billed to th e taxpayers in N ovem ber. Billed taxes becom e delinquenton M ar ch 16 of th e follow ing year.r evenuesfrom ad valorem taxesar e rec orded in the year billed. The V illage bills an d collects its own property tax es using th e as sessed valuesdeterm ined by the tax assessorof Evan geline Parish.

17 V ILLA G E O F PIN E PR AIRIE N O TES TO FIN AN C IA L STA TEM ENT S,C O N T 'D Forthe tw elve m onths ended D ecem ber31,2002,the 2002 tax rolltax es of m ills were levied on property with assessed valuationstotaling $3,535,420 and were dedicated as follow s: G eneralcorporate Purposes StreetM aintenance StreetConstruction Police Protection R ecreation Total Totaltax eslevied were $78, M ills M ills M ills M ills M ills M ills N O TE C - D EDICATIO N O F PRO C EED S - 2% SA LES AN D U SE TAX Proceeds ofthe two percent(2%)sales an d use tax are ded icated to the folowing purposes: A fter paying th e nec essary cost of collection an d adm inistration, for th e purpose of construction,m aintenance,and repairs of allpublic streets an d roadw aysw ithin the V illage of Pine Prairie. The two percent(2%)salestax isin effectfora period often years,beginning Jan uary 1, 1998 and ending D ecem ber 31,

18 V ILLA G E O F PIN E PR AIRIE N O T ES TO FIN AN C IA L STA TEM EN TS,C O NT 'D. N O TE D - IN TER FU N D REC EIVABLES,PAY AB LES N O TE E - LITIG A TIO N GeneralFund Due to StreetM aintenance D ue to SalesTax D ue to StreetConstruction D ue from Sewer Funds SpecialRevenue Fun ds Due from GeneralFun d Due to Sales Tax Fun d Due to StreetCons truction Fun d StreetCons truction Fund Duefrorfi GeneralFund Due from StreetM aintenance Fund Due to SalesTax Sales Tax Fund Due from Genera lfun d D ue from StreetM aintenan ce Fun d D ue from Sewer Fun d Due from Stre tcons truction Enterprise Fun ds SewerFund Due to SalesTax Fun d D ue to GeneralFun d TOTALS 1,314 2,000 28, ,257 1, ,000 6,257 7,658 In the opinion of the V illage attorn ey,the potentialclaim sagainstthe V illage notcovered by insurance w ould notm aterially affectthe financialstatem entsof th e V illage. N O TE F - C O M PEN SA TIO N O F M AY O R AN D BO A RD O F AL D ERM EN A schedule of com pensation paid to the M ayorand Board of A lderm en isas follow s: TerrelM ccauley (M ayor) O.L.Fuselier Ricky Cole Terry Savant Total $ 6,180 3,000 3,000 3,000 $

19 V ILLA G E O F PIN E PR AIRIE N O TES TO FIN AN C IAL STATEM E NTS,C O NT 'D. N O TE G - LO N G -TERM DEBT Enterprise Fund - The Village borrowed $320,000 on a Farmers Hom e Adm inistration N ote forthe construction of a sew er system. The note is a forty year,five percentnote with annualpaym entsof $18,806 beginning in Principalpaym entsto m aturity are as follow s: Y ear Total A m ounts $ 4,724 5,040 5,292 5,556 5, ,627 $ N O TE H - C H AN G ES IN G EN ER AL FIXED A SSETS AR E A S FO LLO W S GeneralFixed A ssets, Beginning of Year Additions: SpecialRevenue Fmlds StreetIm provements StreetM aintenance Buildin g Equipm ent GeneralFund Equipm ent Town HallIm provem ents BallPark Im provem ents TotalAdditions Deductions- G eneralfixed A ssets, End of Year Im provenleflts OtherThan Buildin gs Buildings Equipm ent Totals $ 47,558 $115,676 $1,210,591 $302,823 $1,676,648 $ ,078 $ 58, $ ,500 1,703 14,274 61,655 46,536 $ 126,172 $ (225) $ $ $ $318.5~ 5_ $A

20 VILLAG E O F PIN E PRA IRIE N O TES TO FINA N C IAL STA TEM E N T S,C O NT 'D. N O TE I - CH AN G ES IN LO NG -TER M D EBT The follow ing isa sum m ary of N otes Payable of the V illage forthe yearended D ec em ber 31,2002: Fam ~rshome Adm inistration TotalLong-Term Debt Payable January l 2002 $284,387 $ Payable D ecem ber3 1, Additions Retirem ents $0 $ (4,314) $280,073 $0 $ ~ (4.314 $ N O TE J - AM O RTIZA TIO N O F CO NTR IBUTED CA PITAL FO R CO N STRU CTIO N PR O JECTS U ndern ationalcouncilin G overnm entala ccounting Statem ent2,grants,entitlem ents, orshared revenues restricted for the acquisition orconstruction of capitalassets should be recorded as contributed equity. The V illage rec eived grants for the construction of a sew er system from th e follow ing: LA D ivision of Adm inistration Total $748,869 $ D epreciation recognized on assets acquired or constructed through such resources extern ally restricted forcapitalacquisitions m ay be closed to the appropriate contributed capital accoun tand reported in th e operating statem entunderoperating expenses. If th is option isfolowed,the netincome(loss),adjusted by theamoun tof depreciation on fixed as sets acquired or constructed through such resources extern ally restricted for this purpose,isclosed to Retained Earningsan d reported afternetincome (Loss). N O TE K - STA T EM EN T O F C A SH FL O W S U nder G overnm entalaccounting Stan dar ds Boar d Statem ent N o.9,all govern m ental entities,w hose fiscalyear begins after D ecem ber 15, 1989,m ustadopta statem entof cash flow s to replace the statem entof chan ges in financialposition for allproprietary funds. A statem entof cash flowspresentscash an d cash equivalentsatthe beginning an d end of the period.c ash equivalentsare defined as short-term,highly liquid investm entsthatar e both: 17

21 VILLA G E O F PIN E PR AIRIE N O TES T O FIN A N C IAL STATEM ENT S,C O N T'D. a. Readily convertible to know n am ountsof cash b. So near their m aturity th at th ey present insignificant risk of changes in value because of chan ges in interestrates. A statem entof cash flow s focuses on cash receipts and cash paym ents resulting from opera ting,noneapitalfin ancing,capitalan d related fin ancing,orinvesting activities. Operating activities generally result from providing services and producing and delivering goods,an d include alltransactions and oth er events th at are notdefin ed as capitalan d re lated finan cing,noncapitalfinan cing,or investing activities. Cash flow s from operating activities general ly are th e cash effec ts of transactions an d other events thatenter into determ inati,on of operating incom e. N oneapital financing activities include borrow ing m oney for purposes other than to acquire, construct, or im prove capital as sets and repaying those am ounts borow ed, including interest.thiscategory includesproceedsfrom alborrowings(such asrevenue an ticipation notes)notclearly attributable to acquisition,construction orimprovementof capitalassets,regardless of th e form of th e borrow ing. A lso included are certain other interfund an d intergovem m entalreceipts and paym ents. Capitalan d related finan cing activitiesinclude (a)acquiring an d disposing of capital assetsused in providing servicesorproducing goods,co)borrowing money foracquiring, constructing,orimproving capitalassetsan d repaying the amountsborrowed,including interest,and (c)paying forcapitalas setsobtained from vendorson credit. Investing activities include m aking and collecting loan s an d acquiring an d disposing of debtorequity instrum ents. N O TE L - CO LLA TER ALIZA TIO N O F CA SH Bank Balan cesatd ecem ber31,2002 LessAm ountinsured by FD IC LessAm ountcollateralized w ith Sec urities Pledged in the V illage'sn am e $I,059,191 (100,000) (959,191) U ninsured/u ncollateralized Bank Balan ces atd ecem ber 31,2002 The V illage'scash w asadequately collateralized atdecem ber31,2002

22 VILLA G E O F PINE PR A IRIE N O T ES TO FIN AN C IA L STA TEM E NTS,C O NT 'D. N O TE M - A U D IT EN G A G EM EN T DELAY The auditof the V illage's generalpurpose financialstatem entsas of and forthe year ended D ecem ber31,2002 w asnotcom pleted an d transm itted to the legislative auditor w ithin six m onth sof the close of the V illage'syear as required by state law. N O TE N -$742,000 REV EN U E BO N DS,SERI ES 2002 The Village issued $742,000 of Revenue Bondsin January 2003 forth e purpose of constructing an d repairing public streets and roadw aysin th e V illage. Th e V illage aw ar ded the construction contractin N ovem ber 2002.A ctualco nstruction began in 2003.

23 SPECIA L R EV ENU E FU N DS To account for the receipt and use of proceeds of the Vilage's7.00 miltax on alproperty subjectto state taxation in th e V illage. The expenditures are forthe purpose of m aintaining streets in th e V illage. StreetConstruction Fund SalesTax Fund: Trees for the V illage Fund To accoun t for the receiptand use of proceeds of thevilage's5.00 milltax on alproperty subjectto state tax ation in the V illage. The expenditures are for the purpose of constructing streets in the Village. To accoun t forthe receiptand use of the V illage's 2% sales an d use tax.these taxes are dedicated for, after paying the necessary cost of collection and adm inistration,the hard surfacing an d resealing an d m aintaining of roads in the V illage, an d for the paym entof bonds or oth er funded indebtedness of said V illage incurred for said purposes. To account for th e receiptan d use of pro ceeds of the V illage's grant an d donations for a V illage Beautification Project.

24 B ET ASSETS Cash on D eposit Savings Account& Certificatesof D eposit Property TaxesReceivable Grants Receivable Due from G eneralfun d Due from StreetM aintenance Ftmd Due from SewerFun d Due from StreetConstru ction TotalAssets Street Street Sales Trees M aintenance Construction Tax forthe Tax Fun d Tax Fund Fund Village Fund Totals $ 26,610 23,106 15,000 1,777 45,849 16,398 1,314 2,000 $203,168 $ 264 $230,042 28, ,257 1,825 $ ,849 39,504 15,000 31,288 2,499 6,257 1,825 $ 264 $ BALAN CE Liabilities: W ithholding & PayrollTaxes Payable Due to SalesTax Fund Due to StreetConstruction Fun d TotalLiabilities Fund Balance: Undesignated TotalFund Balance Tota lliabilitiesand Fun d Balance $ ,000 $ 2,521 $ 63,972 $ 63,972 $ ,825 $ 2,278 $.1,825 $ 2,278 $ 0 $63,736 $ 63,736 $237,668 $237,668 $ $ 264 $ 2,300 2,324 2,000 $ 6,624 $ 264 $365,640 $ 264 $365~640

25 VILLA G E O F PIN E PR A IRIE CO M BIN IN G STATEM ENT O F R EVE N UES.EX PEN D ITU RE AN D C H AN G ES IN FU N D BALAN C E FO R TH E Y EAR EN D ED D EC EM BER 31,2002 S Revenue: Tax: Sales Property Grants M iscellaneous TotalRevenues Street M aintenance Tax Fund $ Street Construction Tax Fun d 24,748 17,677 15,000 Sa~s Tax Fun d $135, $ 39,748 $ 17,677 $136,076 Trees forth e Village Fun d $ $135,420 42,425 15, $ 0 $193,501 Expenditures: Current: GeneralGovernm ent StreetD epartm ent Capita loutlays TotalExpenditures $ 10,508 1,500 $ 12,008 $ 0 $ 97,047 1,506 $ 98,553 $ $ 706 $ 97,052 10,508 3,707 $111,267 InterestIncom e Operating TransferIn Operating TransferOut TotalOtherFinancing Sources (Uses) 141 $ 1,494 (40,000) $ 2,899 49,538 (1,465) $ 4,393 49,679 (41,46.~ $ 141 $(38,506) $ 50,972 $ 0 $ 12,607 $27,881 $(20,829) $ 88,495 $(706) $ 94,841 $ 36,091 $ 84,565 $149, ,799 YEAR $_6_3,922 $ $ $ 264 $365.64~ ) 21

26 M ICHAEL W.JOHNSON MEMP~ R AMI~RICAN IN ~'Tl3"d~ OF ~ RTIFIED PUBLIC ACCOUNTANTS (A PROFESSIONAL CORPORATION) 105 North 11flStreet-PostO fice Box 529 EUNICE,LOUISIANA Phone (337) MEMgER SOCIETy OF LC~JlSlANA CERTIFIED PUBUC ACGC4JNT~ rs To the Board of A lderm en V illage of Pine Prairie,Louisiana I have audited the general-purpose financialstatem ents of the V illage of Pine Prairie, Louisian a,as of an d for the year ended Decem ber 31,2002,and have issued m y report thereon dated July 29,2003. Iconducted m y auditin accordance w ith auditing standards generally accepted in tile United States of Am erica and the standards applicable to financialaudits contained n G overn m enta uditing Stan dards,issued by the Com ptroller G enera lof the U nited States. Com pliance A s part of obtaining reasonable assuran ce about w hether th e V illage of Pine Prairie, Louisiana's finan cialstatem ents are free of m aterialm isstatem ent,iperform ed testsof its com pliance w ith certain provisions of law s, regulations, contracts an d grants, noncom pliance w ith w hich could have a directan d m aterialefecton the determ ination of finan cial statem ent am ounts. How ever,providing an opinion on com pliance w ith those provisionswasnotan objectiveof my auditand,accordingly,ido notexpresssuch an opini on. The results of m y tests disclosed instances of noncom plian ce that ar e required to be reported underg overnm enta uditing Stan dards an d w hich ar e described in the accom pan ying schedule of findingsasitem Intern alcontrolo ver FinancialReoortin~ In planning and perform ing m y audit, t co nsidered the V illage of Pine Prairie, Louisian a's internalcontrolover finan cialreporting in order to determ ine m y auditing procedures for the purpose of expressing m y opinion on the genera lpurp ose financial statem ents an d notto provide as suran ce on the internalcontrolover finan cialreporting. H ow ever,inoted certain m atters involving the internalco ntrolover finan cialreporting and its operation that I consider to be reportable conditions. Reportable conditions involve m atters com ing to m y attention relating to significan tdeficiencies in the design oroperation ofthe internalco ntroloverfinancialreporting that,in my judgment,could adversely affec t th e V illage of Pine Prairie, Lo uisiana's ability to record, process, sum m arize an d reportfinancialdata consistentw ith the as sertions of m an agem entin the financialstatem ents. Reportable conditions ar e described in th e accom pan ying schedule of findingsas item s 2002-ian d

27 A m aterialweakness isa condition in which the design oroperation of one or m ore of the intern al control com ponents does not reduce to a relatively low level the risk th at m isstatem ents in am ounts th atw ould be m aterialin relation to the financialstatem ents being audited m ay occur an d notbe detected w ithin a tim ely period by em ployeesin th e norm alcourse of perform ing th eirassigned functions. M y consideration of th e internal controloverfinancialreporting would notnec essarily disclose allm attersin th e intern al control that m ight be reportable conditions and, accordingly, w ould not nec essarily disclose allreportable conditions that are also considered to be m aterialw eaknesses. H ow ever,iconsider item to be of th e reportable conditions described above,a m aterialw ealaless. This reportis intended solely for the inform ation an d use of m anagem ent,th e Board of A lderm en,an d the Legislative Auditor an d is notintended to be an d should notbe used by an yone otherthan th ose spec ified parties. U nder Louisian a Revised Statute 24:513, thisreportis distributed by th e Le gislative A uditor asa public docum ent. -,o7 M ichaelw.johnson Certified Public A ccountan t Eun ice,louisian a July 29,2003

28 V ILLA G E O F PIN E PR A IRIE SC H EDU LE O F FIND IN G S For the Y ear Ended D ecem ber 31,2002 Ihave audited the financialstatem ents of the V illage of Pine Prairie,Louisian a as of and forthe year ended D ecem ber31,2002,and have issued m y reportthereon dated June 29, Iconducted m y auditin accordance with auditing standar dsgenerally accepted in th e United States of Am erica an d the stan dardsapplicable to financialaudits contained in G overnm enta uditing Stan dar ds,issued by the Com ptroller G eneralof the U nited States. M y auditof the fm ancialstatem entsas of D ecem ber 31,2002 resulted in an unqualified opinion. Section I.Sum m ary of A uditor'sreports Report on Internal Control and Com plian ce M aterial to the Finan cial Sta tem ents In ternalcontrol M aterialw eaknesses X Y es R ep ortable Conditions X Y es N o N o Com plian ce Com plian ce M aterialto FinancialStatem ents Y es X N o Section II. FinancialStatem entfindings Inadequate Segregation ofd uties Finding: Cause: R ecom m endation: The segregation of duties is inadequate to provide effective intern alcontrol. Th e condition isdue to econom ic an d space lim itations N o action isrecom m ended. 24

29 A uditengagem entd elay V ILLA G E O F PINE PR A IR IE SCHEDULE OF FINDINGS (Continued) For the Year Ended Decem ber 31,2002 Finding: com pleted Cause: Recom m endation: The auditof the V illage's general- purpose financialstatem ents as of and forthe yearended D ecem ber31,2002,w as not an d tran sm itted to the legislative auditor w ithin six m onthsof the close of the V illage'syear as required by state law. M an agem entoverlooked thisrequirem ent. M anagementshould ensurethatthe auditof the Vilage'sgeneralpurpose financialstatem ents,ar e com pleted and tran sm itted to the legislative auditor w ithin six m onths of th e V illage'syear as required by state law. 25

30 VILLA G E O F PIN E PR AIRIE SC H ED U LE O F PR IO R Y EA R FIN D IN G S For the Y ear Ended D ecem ber 31,2002 SEC TIO N I.IN TERN AL C O N TR O L AN D C O M PLIA N C E M A TER IA L TO TH E FIN AN CIAL STAT EM EN T S N one.

31 V ILLA G E O F PIN E PR AIRIE M A N A G EM ENT 'S C O R R EC TIV E A CTIO N PLA N For the Y ear Ended Decem ber 31,2002 SEC TIO N I.INT ER NAL C O NTRO L AN FIN A N C IA L STATEM ENT S Finding N o AuditEngagem ent D elay: The auditof the V illage's generalpurpose financialstatem entsas of and forthe year ended D ecem ber31,2002, w as notcom pleted and tran sm itted to the Legislative auditor w ithin six m onths of the close of the V illage's year as required by state law. D C O M PLIAN C E M A TERIAL TO TH E M anagem entshould ensure thatthe auditof the V illage's generalpurpose finan cialstatem ents are com pleted an d tran sm itted to the Legislative auditor w ith in six m onths of th e close of the V illage's year asrequired by state law. 27

32 M ICHAEL W.JOHNSON MEMBER AMERICAN INt;rlTLRE OF CERTIFIED PUBLK:ACCOUNTANT8 (A PROFESSIONAL CORPORATION) 105 North 11th Street-PostOfice Box 529 EUNICE,LOUISIANA Phone (337) MEMBER SOCIETY OF LOL)IStANACER~IF~ED PUBLIC AC~OUNTAk'T8 To the Board of A lderm en V illage of Pine Prairie,Louisiana The audited f,naneialstatem ents of the V illage of Pine PraitSe,Lo uisiana and m y report thereon is presented in the preceding section of this report. The financialinform ation presented hereinafter w as derived from the accounting records tested by m e as partof the auditing procedures follow ed in m y exam ination of the aforem entioned financial statem ents,an d in m y opinion itis fairly presented in allm aterialrespec ts in relation to th e financial statem ents taken as a w hole; how ever, it is not necessary for a fair presentation ofthe financialposition,resultsof operations,an d cash flowsof thevilage of Pine Prairie,Louisian a. M ichaelw.johnson Certified Public A ccountant Eunice,Lo uisian a July 29,2003

33 M ICHAEL W.JOHNSON MEMBER AMERICAN [Ns'rfuTE OF CE~rIRED PtJBUC ACCGONTANTS (A PROFESSIONAL CORPORATION) 105 North 11th Street-PostOfice Box 529 EUNICE,LOUISIANA Phone (337) MEMBERSOCIETY GF LOUIStANA CERTIFIED PUBUC ACCOUNTANTS To the Board of A lderm en V illage of Pine Prairie,Louisiana Ihave audited the finan cialstatem ents of the V illage of Pine Prairie,Lo uisiana forthe year ended D ecem ber31,2002 and have issued m y reportthereon dated July 29,2003. A s part of m y audit I m ade a study and evaluation of th e V illage of Pine Prairie, Loni siana'ssystem of internalaccounting controlto th e extenticonsidered necessary to evaluate th e system as re'quired by generally accep ted auditing standar ds. The purpose of m y study an d evaluation w as necessary for expressing an opinion on th e V illage's financialstatem ents.m y study an d evaluation w as m ore lim ited th an w ould be necessary to expressan opinion on the system of internalaccountin g controltaken as a w hole. The m an agem entof the Village of Pine Prairie,Louisian a isresponsible for establishing an d m aintaining a system of internalaccounting co ntrol. In fulfilling th atresponsibility, estimates,an d judgmentsby man agementare required to assessthe expected benefitsan d related costs of control proced ures. The objectives of a system are to provide m anagem ent w ith reas onable,but not absolute, as suran ce th at as sets ar e safeguar ded againstloss from unauthorized use ordisposition,an d thattran sactions ar e exec uted in accordan ce w ith m anagem ent's authorization an d recorded properly to perm it the prepar ation of finan cial statem ents in accordan ce w ith generally accepted accounting principles. Because of inherentlim itations in any system of internalaccounting control,errors or irregularitiesmay neverthelessoccuran d may notbe detected. Also,projection ofan y evaluation ofthe system to future periods is subjectto the risk thatproceduresmay becom e inadequate bec ause of changes in conditions or thatthe degree of com pliance w ith proceduresm ay deteriorate. M y study an d evaluation m ade forthe lim ited purpose described in the firstpar agraph w ould notnecessarily disclose allm aterialw eaknesses in the system. A ccordingly,ido notexpressan opinion on the system of intern alaccoun ting controlof the V illage of Pine Prairie,Lo uisian a taken as a w hole. H ow ever,m y study and evaluation disclosed the follow ing condition th atibelieve to be a m aterialw eakness. 29

34 Finding: Cause: The auditof the V illage's general- purpose financialstatem entsas of an d for th e year en ded D ecem ber 31,2002,w as notcom pleted and transm itted to th e Legislative auditorw ithin six m onths of th e close of the V illage'syear asrequired by state law. M an agem entoverlooked thisrequirem ent. Recom m endation: M an agem entshould ensure th atth e auditof th e V illage's generalpurpose financialstatem ents are com pleted and transm ited to th e Legislative auditorwithin six monthsof the close ofthevilage's yearasrequired by state taw. A m aterial w eaknessis a condition in w hich th e design or operation of one or m ore of th e intern al control co m ponents does not reduce to a relatively low level th e risk th at m isstatem ents in am ounts th at w ould be m aterial in relation to th e genera l purpose financialsta tem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by employees in the firrmal course of performing their assign ed functions. M y consideration of th e internal control over finan cial reporting w ould not nec essarily disclose all m atters in th e intern al control that m ight be rep ortable co nditions and, accordingly, w ould not necessarily disclose all reportab le conditions that are also considered to be m aterialw eaknesses. The Village of Pine Prairie,Louisian a has insurance coverage of th e following types, am ounts,an d expiration dates: TY PE A utom obile Liability Comm ercialg eneralliability Law Enforcem ento fficer's Com prehensive Liability Public O fi cials'errorsan d Om issions Liability W orker'scom pensation Com m ercialproperty Fidelity Bond - Public Em ployees Fidelity Bond - Public Ofi cials V ehicle PhysicalD an aage AM OUN T $500, ,000 EX PIRA TION D A TE 5/1/03 5/1/03 500,000 5/1/03 500, , ,700 75,000 2,500 87,796 5/1/03 1/1/03 1/14/03 5/16/03 10/28/03 6/15/03 30

35 Accounts Receivablesw ere aged as follow s: 0-30 days days days days O ver 120 days $4,514 1, ,643 _ $ This report is intended solely for the use of m anagem ent and Farm ers H om e A dm inistration and should notbe used for any other purpose. M ichaelw.johnson Certified Public A ccountant Eunice,Louisian a July 29,2003