oo~lq,l~. MorehouseparishScholBoard Bastrop,Louisiana AnualFinancialReport Asofandfortheyearl~uded3une30,198

Transcription

1 oo~lq,l~. MorehouseparishScholBoard AnualFinancialReport Asofandfortheyearl~uded3une30,198 IJmterprevislo:~sofstatelaw,this reportis~rjublicdocument.a copyofi~a~epcr[hasbensubmittedtoi,h:~audited,ereviewed, entity:~r:dothor~:propriatepublic ob!cia!s.]h~.reporti:s~vailablefor pub!icil~spect;o.qgthebaton Ro~:.,o~fic~cit,r~Legislative#.uditot;:.~W.v,:i'oreal3pi'opri~te,athe oificeofthep~rishclerkofcourt.

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3 MorehouseParishScholBoard AnualFinancialReport AsofandfortheYearEndedJune30,198 INDEPENDENTAUDITORS'REPORT CONTENTS Statement GENERAL-PURPOSEFINANCIALSTATEMENTS 1 CombinedBalanceShet GOVERNMENTALFUNDS: AlFundTypesandAcountGroups 2-3 CombinedStatementofRevenues,Expenditures CombinedStatementofRevenues,Expenditures,andChanges andchangesinfundbalances(deficit) B 4-5 NotestotheGeneral-PurposeFinancialStatements ilfundbalances(deficit)-budget(non-gapbasis)andactua C 6-9 Index Notes SUPLEMENTALINFORMATION Exhibit SPECIALREVENUEFUNDS CombiningBalanceShet l CombiningStatementofRevenues,Expenditures,andChangesinFundBalances StatementofRevenues,Expenditures,andChangesinFundBalances Budget(GAPBasis)andActual Title1 TitleVI MathandScience-TitleI1 SpecialEducation SumerSchol Preschol MiscelaneousStateGrants ScholFodService DrugFre-TitleIV SpecialFederal (Continued)

4 MorehouseParishScholBoard AnualFinancialReport AsofandfortheYearEndedJune30,198 SUPLF.MENTALINFORMATION(Continued) CONTENTS(Continued) ExhibitPage CAPITALPROJECTSFUNDS: CombiningBalanceShet AGENCYFUNDS: CombiningStatementofRevenues,Expenditures,andChangesinFundBalances StatementofAsetsandLiabilities StatementofChangesinAsetsandLiabilities 58 GENERAL: ScheduleofChangesinDepositsDueOthers OTtEREPORTSREQUIREDBY ScheduleofCompensationPaidBoardMembers 62 BYOFICEOFMANAGEMENTANDBUDGET(OMB)CIRCULARNO.A- AND RepolonComplianceandonInternalControlOverFinancialReporting 3: 63 BasedonanAuditofFinancialStatementsPerformedinAcordance WithGovernmentAuditinuStandard Rel)ortonComplianceWithRequirementsAplicabletoEachMajorProgramandon InternalControlOverComplianceinAcordanceWithOMBCircularNo.A-13 ScheduleofExpeudituresofFederalAwards NotestotheScheduleofExpendiluresofFederalAwards OTHERINFORMATION ScheduleofFindingsandQuestionedCosts SumaryStatusofPriorAuditFindings CorectiveActionPlanforCurent-YearAudit ManagementLeterItems ManagementLeter 96 StatusofPriorManagementLeterItems (Concluded)

5 TheCPA. NeverUnd~festlrwleTn~Value~ ALEN,GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS P,O.Box FerandStretMonroe,LA Monroe.LA71201 Telephone:(318)38-42 Facsimile:(318)38464 Website:alengrencpa,com BoardMembers MorehouseParishScholBoard 285GrenAcresOficePark G.O.P.BuildingI.Suite40 BosierCity,LA71 Telephone:(318) Facsimile:(318) IndependentAuditors'Report ErnestL.Alen,CPA APro(es;.o~at AcounfngCorp.) TimGren,CPA MargieWiliamson,CPA WehaveauditedtheacompanyingGENERAL-PURPOSEFINANCIALSTATEMENTSofMorehouseParish ScholBoard,,asofandfortheyearendedJune30,198,aslistedinthetableofcontents. Thesegeneral-purposefinancialstatementsaretheresponsibilityoftheScholBoard'smanagcmcnLOuresponsibilityistoexpresanopiniononthesegeneral-purposefinancialstatementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthestandardsaplicableto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneraloftheunited States.Thosestandardsrequirethatweplanandperformtheauditobtainreasonableasuranceaboutwbcther thefinancialstatementsarefreofmaterialmistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingtheacounting principlesusedandsignificantestimatesmadebymanagement,aswelasevaluatingdieoveralfinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneral-purposefinancialstatementsreferedtoabovepresentfairlyinalmaterialrespectsthe financialpositionofthescholboardasofjune30,198,andtheresultsofitsoperationsfordieyearthenended inconformitywilhgeneralyaceptedacountingprinciples. InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdatedOctober29,198,onour consideralionofthescholboard'sinlemalcontroloverfinancialreportingandourleslsofilscompliancewith certainprovisionsoflaws,regulations,contractsandgrants. Ourauditwasperformedforthepurposeoforminganopiniononthegeneral-purposefinancialstatemeutsoflhe ScholBoardtakenasawhole.TheaCOmpanyingSUPLEMENTALINFORMATIONaslistedmthetableof contentsispresentedforpurposesofaditionalanalysisandisnotarequiredpartofthegeneral-purposefinancial statements.suchinformationhasbensubjectedtodieauditingproceduresapliedintheauditofthegeneralpurposefinancialstatementsand,inouropinion,isfairlystated,inalmaterialrespects,inrelationtothegeneralpurposefinancialstatementstakenasawhole. Also,theacompanyingOTHERINFORMATION,aslistedinthetableofcontents,ispresentedforpurposesof aditionalanalysisandisnotarequiredpartofthegcueral-purposefinancialstatementsofthescholboard.such informationhasnotbensubjectedtotheauditingproceduresapliedintheauditofthegeneral-purposefinancial statementsand,acordingly,wexpresnopiniononit. Monroe,Louisiana October29,198 ALEN,GREN&COMPANY,LP Member:An~rieanInstituteofCertifiedPublicAcountams.S~ieiyofLouisia~CertifiedPublicAcoumantsand An~rlcanInstituteofCeaifiedPubleAcountantsDivislonf.rCPAFina~

6 MOREHOUSEPARISHSCHOLBOARD ALFUNDTYPESANDACOUNTGROUPS CombinedBalanceShet June30,198 ASETSANDOTHERDEBITS GENERALREVENUE RNMENTALFUNDS Asets: FUND SPECIAL FUNDS SERVICE DEBT FUND CAPITAL PROJECTS FUNDS Cashandcashequivalents Investments Receivables Interfundreceivable Otherdebits: Inventory 1,589,08 516,528 05O Amountavailableindebtservicefund Land,buildingsandequipment 4,328 1,313, ,017$0 429, ,498$0 386, , ,0 O0 1,372O 398,938O0 138,8410 OO Amountobeprovidedforetirementof generalong-termobligations LIABILITIES,EQUITY(Deficit)ANDOTHERCREDITS TOTALASETSANDOTHERDEBITS ~2t109194~; ~; ~;521t457 Liabilities: Acounts,salariesandotherpayables Bankoverdraft Interfundpayable $713,327$ Certificatesofindebtednespayable Deferedrevenues 1,75,792 Depositsdueothers Capitaleasespayable Compensatedabsencespayable Notespayable 638,7580O 1,532,07 32, ,497 1, ,01 O 00 0 Equity(Deficit)andothercredits: TotalLiabilities O 0O 05000O0 O $3,127,87$1,85,475$ 0~482,508 Investmentingeneralfixedasets FundBalances: Reservedfordebtservice $ 05 Reservedforinventory Reservedforworkers'compensationclaims 0 05 Unreserved: 4,328 Undesignated (1,027,239) 4,978 1,3720 O 910,723O0 05 TotalEquity(Deficit)andOtherCredits $(1,017,93)$324,021~ 312,649 O ~; TOTALIABILtTIES,EQUITY(DeScit) 38,949_ ANDOTHERCREDITS THENOTESTOTHEFINANCIALSTATEMENTSAREANINTEGRALPARTOFTHISTATEMENT

7 StatementA FIDUCIARY- AGENCY *ACOUNTGROUPS* FUNDS GENERALGENERAL ASETS FIXED LONG-TERM(MEMORANDUM TOTAL DEBT ONLY) 25,286$ 0 0$908,417 O 250, O2,417, ,354, ,963,581 15,70 0 O 1,627,747_1,627, , $ O 0$ 0$713,327 O2,3,349 25,286 02,417,846 O 1,045,01,045,0 0 25,286 1,38 O0 001,145,8091,145, ,364 5, ,364 5,297 25,286$ 0$2,538,470$8,29, ,963,581$ 0$31,963, ,723 15, ~75,641) O$31,963,581$ 0$32,219,341 25,286~31~963~581~;2r538~470:~40r48~957

8 MOREHOUSEPARISHSCHOLBOARD CombinedStatementofRevenues,Expenditures, andchangesinfundbalances(deficit) ALGOVERNMENTALFUNDS FortheYearEndedJune30,198 StatementB REVENUES GENERALREVENUE Localsources: FUND SPECIAL FUNDS SERVICE DEBT Taxes: Interestearnings Advalorem Fodservices Satesanduse $1,834,97$ 2,674,236 37,595 Statesources: Other Federalsources Equalization 473, FUND PROJECTS(MEMORANDUM CAPITAL FUNDS TOTAL ONLY) ,307,320$ 82,329 28,09 34, , , ,142,317 3,940,742 Other 15,459,230 30,0 O 0 82,512 1,186,640 4,303 EXPENDITURES TotalRevenues - 62,275,10, ,09 0O 0 15,759, ,230,943 $~,728,730$5,746,482~;2,24,294$394,540$30,094,046_ 5,172,745 Curent: Instruction: Regularprograms Suportservices: Specialprograms Otherinstructionalprograms $10,136,149$76,294$ 2,879,9271,84,892 Studentservices 1,325,578 Instructionalstafsuport Generaladministration 901,806 63,620 65,965 Scholadministration 41,387 47, ,212,43 4,764, Busineservices 1,54, ,40 1,025 Plantservices Fodservices Studentransportationservices 29,747 Comunityserviceprograms Centralservices 2,232, , ,361, , ,24 79, ,069, ,858 1,54, ,821 Facilitiesacquisition&construction 430,026 20,430 Debtservice: 3,48 7,426 00O 2,378,387 Principalretirement ,031, ,382, ,963 O0 98,508 2,461, , ,48 Interestandbankcharges _ 162,861 32,529 87,4871,737,0 16, , ,987,348 TotalExpenditures.$~,796,82L5,484,656~1,863,080$1,03,743$31,178, ,107 EXCES(Deficiency)OFREVENUES OVEREXPENDITURES $(1,068,152)$261,826L361,214~;(639,203)$(1,084,315) (CONTINUED)

9 MOREHOUSEPARISHSCHOLBOARD ALGOVERNMENTALFUNDS CombinedStatementofRevenues,Expenditures andchangesinfundbalances(deficit) FortheYearEndedJune StatementB GENERALREVENUESERVICEPROJECTS(MEMORANDUM FUND SPECIAL FUNDS DEBT FUND CAPITAL FUNDS TOTAL OTHERFINANCINGSOURCES(USES) ONLY) Proceodsfomsaleofixodasets$ TotaIOtherFinancingSources(Uses)~;2,35$ 2,35~; 0$ 0$ 0$ 0$ 0~ 0$ 2,35_ EXCES(Deficiency)OFREVENUES ANDOTHERSOURCESOVER EXPENDITURESANDOTHER FUNDBALANCESATSEGINING FINANCINGUSES $(1,065,817)$261,826$ $~39,203)$(1,081,980) FUNDBALANCES(Deficit)ATEND OFYEAR 47,84 62, , ,37,740 OFYEAR (CONCLUDED) THENOTESTOTHEFINANCIALSTATEMENTSAREANiNTEGRALPARTOFTHISTATEMENT

10 MOREHOUSEPARISHSCHOLBOARD CombinedStatementofRevenues,Expenditures,andChsngos infundbalances(det3cit).budget(non-gapbasis)andactual GOVERNMENTALFUNDS-GENERALFUND FortheYearEndedJune30,1898 StatementC REVENUES Localsources: BUDGET ACTUAL(UNFAVORABLE)_ VARIANCE Taxes:Advalorem Interestearnings Other Salesanduse 2,760,0 1,758,250$ Statesources: ,834,97$ 2,674, ,464 37,595 (85,764) (2,405) 76,747 Federalsources Equalization Other 15,395,015,459,230 49,819 1,362,07 0 1,238,798 0 (123,209) 64,230 0 EXPENDITURES TotalRevenues $21,758,902$21,718,320~ (40,582). Curent: Instruction: Regularprograms Suportservices: Specialprograms Otherinstructionalprograms 9,869,672$ 2,834,525 Studentservices 1.18,875 10,126,080$ 2,879,927 Instructionalstafsuport Generaladministration 894,760 1,325,578 (256,408) Scholadministration 574,830 Busineservices 48, ,806 (206,703) (45,402) Plantservices 1,562,109 Fodservices Studentransportationservices 243,470 Comunityserviceprograms Centralse~,ices 2,105,450 1,54,646 65,965 41,387 (81,135) (7,o467 t,248,10 123,483 2,234,76 Facilitiesacquisitionandconstruction 313,460 1,361,763 29,747 Debtservice: 2,50 132,753 (129,316) 7,4327,463 Principalretirement ,026 (13, , ,87 3,48 (16,567 (9,2707 (29,87 (948) Interestandbankcharges EXCES(Deficiency)OFREVENUES TotalExpenditures - 175,0 160,846 14,154 $21,816,063~;2,786,813~; 15O0 32,18 (17,181 (970,750) OVEREXPENDITURES ~;(57,1617L(1,068,493)~;(1,01,32) (CONTINUED)

11 MOREHOUSEPARISHSCHOLBOARD GOVERNMENTALFUNDS-GENERALFUND CombinedStatementofRevenues,Expenditures,andChanges nfundbalances(deficit)-budget(non-gapbasis)andactual FortheYearEndedJune30,198 StatementC VARIANCE BUDGET ACTUAL(UNFAVORABLE~ OTHERFINANCINGSOURCES(USES) Procedsfromsaleofixedasets Procedsfrominsurance 2,350$ 2,35$ 341 (15) (9) EXCES(Deficiency)OFREVENUESAND TotalOtherFinancingSources(Uses) $ 2,70$ 2,676$ (24) OTHERSOURCESOVEREXPENDITURES FUNDBALANCESATBEGININGOFYEAR ANDOTHERUSES (54,461).~(1,065,817)~,(1,01,356) FUNDBALANCES(Deficit)ATENDOFYEAR 47,84 (6,57)~;(1,017,93)~;(1,01,356) (CONTINUED)

12 MOREHOUSEPARISHSCHOLBOARD CombinedStatementofRevenues,Expenditures,andChanges InFundBalances(Deficit).Budget(Non.GAPBasis)andActual GOVERNMENTALFUNDS-SPECIALREVENUEFUNDS FortheYearEndedJune30,1898 StatementC BUDGET ACTUAL(UNFAVORABLE~ VARIANCE REVENUES Localsources:,3tale~ourcea: Fodservices 210,0$ Federalsources Equalization Other 30,0 30,0 2B,09$ 18,09 0 EXPENDITURES TotalRevenues ,363 4,303 (16,06~ 5,350,101$5,682,920~ 5,10,518_. 30,780_ 32,819_ Curent: InstruCtion: Regularprograms Suportservices: Specialprograms Otherinstructionalprograms 2,143,452 Studentservices ,73$ 1,98,784 63,620 76,294$ (27,561) 154, Instructionalstafsupo~ Generaladministration Plantservices Studentranspodationservices Busineservices 49,534 46,214 1, ,40 47,052 86,134 (838) Facilitiesacquisitionandconstruction Fodservices Centratservices ,24 79,216 1,025 (79,216) (105,498) 435 2,05,0 2,031,16 20,430 7,426 (20,430) ~7,426) (26,16) EXCES(Deficiency)OFREVENUES TotalExpenditures 5,395,101~5,484,656_$ 0 9,9. (89,5)~ (9,9)_ OTHERFINANCINGSOURCES(USES) OVEREXPENDITURES -(45,0)$ 198,264.$ 243,264_ Procedsfrominsurance TotalOtherFinancingSources(Uses) O$~ O~ 63,562.~; 63,562.$ 53,562 (CONTINUED) 63,562_

13 MOREHOUSEPARISHSCHOLBOARD GOVERNMENTALFUNDS-SPECIALREVENUEFUNDS CombinedStatementofRevenues,Expenditures,andChanges InFundBalances(Deficit)-Budget(Non-GAPBasis)andActualStatementC FortheYearEndedJune EXCES(Deficiency)OFREVENUESAND BUDGET ACTUAL (UNFAVORABLE) VARIANCE ANDOTHERFINANCINGUSES OTHERSOURCESOVEREXPENDITURES FUNDBALANCESATBEGININGOFYEAR $ (45,0)$261,826$ FUNDBALANCES(Deficit)ATENDOFYEAR 5,250 62, , (CONTINUED)

14 MorehouseParishScholBoard NotestotileGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 INDEX NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES A.REPORTINGENTITY B.FUNDSANDACOUNTGROUPS Governmentalfunds Fiduciaryfunds AcountGroups C,MEASUREMENTFOCUSANDBASISOFACOUNTING Governmentalfunds FiduciaryFunds D.BUDGETS E.CASHANDCASHEQUIVALENTS F.INVESTMENTS G.SHORT-TERMINTERFUNDRECEIVABLES~PAYABLES 1.INVENTORIES I.FIXEDASETS J.DEFEREDREVENUES K.COMPENSATEDABSENCES L.LONG-TERMOBLIGATIONS M.FUNDEQUITY N.INTERFUNDTRANSACTIONS O.SALESTAXES P.USEOFESTIMATES Q.MEMORANDUMONLY-TOTALCOLUMNS NOTE2-STEWARDSHIP,COMPLIANCE,ANDACOUNTABILITY A.DeficitFundBalances/RetainedEarnings B.ExcesofExpendituresOverApropriationsinIndividualFunds NOTE3-BUDGET/GAPRECONCILIATION NOTE4-LEVIEDTAXES NOTE5-CASItANDCASHEQUIVALENTS NOTE6-INVESTMENTS NOTE7-RECEIVABLES NOTE8-FIXEDASETS NOTE9-RETIREMENTSYSTEMS NOTEI0-OTHERPOST-EMPLOYMENTBENEFITS NOTEI1-ACOUNTS,SALARIESANDOTHERPAYABLES NOTE12-COMPENSATEDABSENCES NOTE13-CItANGESINAGENCYFUND-DEPOSITSDUEOTHERS NOTE14-LEASES NOTE15-CHANGES1NGENERALONG-TERMOBLIGATIONS NOTE16-INTERFUNDASETS/LIABILITIES NOTE17-RESERVEDFUNDBALANCES NOTE18-LITIGATIONANDCLAIMS NOTE19-ENCUMBRANCES NOTE20-SUBSEQUENTEVENTS NOTE21-RISKMANAGEMENT NOTE2-ON-BEItALFPAYMENTSFORFRINGEBENEFITSANDSALARIES

15 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES AsofandfortheYearEndedJune30,198 TheacompanyingfinancialstatementsoftheMorehouseParishScholBomflhavebenpreparedinconformitywith financialreportingprinciples. generalyaceptedacountingprinciples(gap)asapliedtogovernmentalunits.thegovermnentalaconting StandardsBoard(GASB)istheaceptedstandard-setingbodyforestablishingovernmentalacountingand A.REPORTINGENTITY TileMorehouseParishScholBoardwascreatedbyLouisianaRevisedStatute(LSA-R.S.)17:51toprovide imbliceducationforthechildrenwithinmorehouseparish.thescholboardisauthorizedbylsa-r.s.17:81 toestablishpoliciesandregulationsforitsowngovernmentconsistentwiththelawsofthestateoflouisiana andtheregulationsofthelouisianaboardofelementaryandsecondaryeducation.thescholboardis comprisedofsevenmemberswhoarelectedfromsevendistrictsfortermsofouryears. TheSclmolBoardoperatesixtenscholswithintileparishwithatotalenrolmentofaproximately5,60 pupils.inconjunctionwiththeregulareducationalprograms,someofthesescholsoferspecialeducation and/oradulteducationprograms.inadition,thescholboardprovidestransportationandscholfodservices forthestudents. GASBStatementNo.14establishescriteriafordeterminingthegovernmentalreportingentityandcomponent unitsthatshouldbeincludedwithinthereportingentity.underprovisionsofthisstatement,thescholboard isconsideredaprimarygovernment,sinceitisaspecialpurposegovernmenthathasaseparatelyelected governingbody,islegalyseparate,andisfiscalyindependentofotherstateorlocalgovernments.asusedil GASBStatement14,fiscalyindependentmeansthatheScholBoardmay,withoutheaprovalorcolsent ofanothergovernmentalentity,determineormodifyitsownbudget,levyitsowntaxesorsetratesorcharges, andisuebondedebt,thescholboardalsohasnocomponentunits,definedbygasp,statement14asother legalyseparateorganizationsforwhichthelectedscholboardmembersarefinancialyacountable.there arenotherprimarygovernmentswithwhichthescholboardhasasignificantrelationship. 1LFUNDSANDACOUNTGROUPS TheacountsoftheScholBoardareorganizedandoperatedonthebasisofundsat/dacountgroupṣAfund isalindependentfiscalandacountingentitywithaself-balancingsetofacounts.fundacountingsegregates fundsacordingtotheirintendedpurposeandisusedtoaidmanagementindemonstratingcompliancewilh finance-relatedlegalandcontractualprovisions.theminimumnumberofundsaremaintainedconsistentwith legalandmanagerialrequirements.acountgroupsareareportingdevicetoacountforcertainasetsand liabilitiesofthegoverumentalfundsnotrecordedirectlyinthosefunds.

16 MorehouseParishScholBoard NotestotileGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) B.FUNDSANDACOUNTGROUPS(Continued) FundsoftheScholBoardareclasifiedintotwocategories:governmentalandfiduciary.Inturn,each categoryisdividedintoseparatefundtypes.thefundclasificationsandadescriptionofeachexistingfund typefolow: GovenentalfundsacountfortheScholBoard'sgeneralgovernmentactivities,includingthecolection Governmentalfunds asets,andtheservicingofgeneralong-termdebt.governmentalfundsinclude: audisbursementofspecificorlegalyrestrictedmonies,theacquisitionorconstructionofgeneralfixed 1.Generalfund-thegeneraloperatingfundofileScholBoardacountsforalfiuaucialresources 2.Specialrevenuefunds-acountfortheprocedsofspecificrevenuesourcesthatarclegaly excepthoserequiredtobeacountedforinotherfunds. restrictedtoexpendituresforspecifiedpurposes(notincludingexpendabletrustsormajorcapital 3.Debtservicefund-aecoutsfortheservicingofgeneralong-termdebtnotbeingfinancedby 4.Capilalprojectfunds-aecoutfortheacquisitionofixedasetsorconstructionofmajorcapita proprietaryornonexpendabletrustfunds. Fiduciaryfunds projectsnotbeingfinancedbyproprietaryornonexpendabletrustfnds. Fiduciaryfundsacountforasetsheldbythegovernmentinatrustecapacityorasanagentonbehalfof outsideparties,includingothergovernments,oronbehalfofotherfundswithinthescholboard. Agencyfandsarecustodialinature(asetsequaliabilities)andonotpresentresultsofoperationsorlmvc ameasurementfocus.agencyfundsareacountedforusingthemodifiedacrualbasisofacounting.this fundisusedtoacountforasetsthathegovernmentholdsforothersinanagencycapacity.theagency fundisasfolows: 1.Scholactivityagencyfnd-acountsforasetsheldbytheScholBoardasanagentforthe individualscholsandscholorganizations. 12

17 MorehouseParishScholBoard NotestotileGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTEI-SUMARYOESIGNIFICANTACOUNTINGPOLICIES(Continued) B.FUNDSANDACOUNTGROUPS(Continued) Tilegeneralfixedasetsacountgroupisusedtoacountforfixedasetsnotacountedforinproprietary ortrustfunds. Thegeneralong-termdebtacountgroupisusedtoacountforgeneralong-termdebtandcertainother liabilitiesthatarenotspecificliabilitiesofproprietaryortrustfunds. C.MEASUREMENTFOCUSANDBASISOFACOUNTING Governmentalfunds Tileacountingandfinancialreportingtreatruentapliedtoafundisdeterminedbyitsmeasurementfocus. Govermnentalfundtypesusetheflowofcurentfinancialresourcesmeasurementfocusandthemodified acrualbasisofacounting.underthemodifiedacrualbasisofacountingrevenuesarerecognizedwhen susceptibletoacrual(i.e.,whentheyare"measurableandavailable")."measurable"rueansthemuount ofthetransactioncanbedeterminedand"available"meanscoilectiblewithinthecurentperiodorson enoughthcreaftertopayliabilitiesofthecurentperiod.thegovernmentconsidersalrevenuesawfilable iftbeyarecolectedwithin60daysafteryear-end.expendituresarerecordedwbentherelatedfundliability isincured,exceptforunruaturedinterestongeneralong-termdebtwhichisrecognizedwhenthe obligationsarexpectedtobeliquidatedwithexpendableavailablefinancialresources. Withtifsmeasurementfocus,onlycurentasetsandcurentliabilitiesaregeneralyincludedonthe balanceshet.operatingstatementsofthesefundspresentincreasesandecreasesilnetcortcntasets. Thegovernmentalfundsusethefolowingpracticesinrecordingrevenuesandexpenditures: Revenues aresusceptibletoacrual arerecordedasunrestrictedgrants-in-aidathetimeofreceiptorearlierifthesusceptibleand acrualcriteriaremet.expenditure-drivengrantsarerecognizedasrevenuewhenthequalifying (whichincludestatequalizationandstaterevanuesharing) expenditureshavebenincuredandalothergrantrequirementshavebenmet. OlhereceiptsbecomemeasurableandavailablewhencashisreceivedbytheScholBoardand arerecogaizedasrevenueathatime.

18 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandforfileYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) C.MEASUREMENTFOCUSANDBASISOFACOUNTING(Continued) Expenditures Salariesarerecordedaspaid.Salariesfornine-monthemployeswhoelectobepaidovertwelve monthsareacruedatjune30. Substantialyalotherexpendituresarerecognizedwhentherelatedfundliabilityhasbenincured Operatingsupliesarerecordedasexpendituresintileacountingperiodtheyarepurchased OtherFinancineSources(Uses Transfersbetwenfundsthatarenotexpectedtoberepaid(oranyothertypes,suchascapitalease transactions,saleofixedasets,debtextinguishments,long-termdebtproceds,etcetera)are acountedforasotherfinancingsources(uses).theseotherfinancingsources(uses)arerecognized FiduciaryFunds athetimetheunderlyingeventsocur. Theagencyfundiscustodialinatureandoesnotpresentresultsofoperationsorhaveameasuremeut focus.agencyfundsareacountedforusingthemodifiedacrualbasisofaecoutiug.thisfundisused toacountforasetsthathescholboardholdsforothersinanagencycapacity. TheScholBoardfolowstheseproceduresinestablishingthebudgetarydatareflectedinthecombined financialstatements: Statestatuterequiresbudgetsbeadoptedforthegeneralfundandalspecialrevenuefunds EachyearpriortoScptember15,theSuperintendentsubmitstotheBoardproposedanualbudgetsfor thegeneralfundandspecialrevenuefundsthatarenotgraut-oriented.publichearingsareconducted, priortotheboard'saproval,tobtaintaxpayercoments.grautfundsareincludedinspecialrevenue fundsandtheirbudgetsareadoptedathetimethegrantaplicationsareaprovedbythegrantor.the operatingbudgetsincludeproposedexpendituresandthemeansofinancingthen1. Apropriations(unexpendedbudgetbalances)lapseatyearend 14

19 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOL1C1ES(Continued) D.BUDGETS(Continued) Formalbudgetintegration(withintheacountingrecords)isemployedasamanagementcontroldevice. (Continued) Albudgetsarecontroledathedivision,departmentalorprojectlevel.Budgetamountsincludedin theacompanyingfinancialstatementsincludetheoriginaladoptedbudgetandalsubsequent amendments.theserevisionswerecoasideredinsignificantbytheboard.albudgetrevisionsat'c ]gneombrances aprovedbytheboard. Encumbranceacountingisemployedinthegovernmentalfunds.Outstandingencumbrances(e.g., purchaseorders,coutracts)lapseatyearend.tothextentheboardintendstohouorthepurchaseorders andcomitments,theyaredisclosedinthenotestothefinancialstatements.authorizationfortheventual cxpenditurewilbeincludedinthefolowingyear'sbudgetapropriations. Algovernmentalfunds'budgetsarepreparedonthemodifiedacrualbasisofacounting,abasisconsistent withgeneralyaceptedacountingprinciples(gap).budgetedamoutsareasoriginalyadoptedor asamendedbytheboard.legaly,theboardmustadoptabalancedbudget;thatis,totalbudgetedrevenues andotherfinancingsourcesincludingfundbalancemustequalorexcedtotalbudgetedexpendituresaud otherfinancinguses.statestatutesrequiretheboardtoamenditsbudgetswhenrevenuesplusprojected revenueswithinafundarexpectedtobelesthanbudgetedrevenuesbyfivepercentormoreand/or expenditureswithinafundarexpectedtoexcedbudgetedexpendituresbyfivepercentormore.the ScholBoardaprovesbudgetsathefunctionlevelandmanagementcantransferamountsbetwenline E.CASIANDCASIEQUIVALENTS itemswithinafunction. Cashincludesamountsindemaudepositsandinterest-bearingdemandeposits,andtimedepositamounts. Cashequivalentsincludeamountsintimedepositsandthoseinvestmentswithoriginalmaturitiesof90days orles.understatelaw,thescholboardmaydepositfundsindemandeposits,interest-bearingdemand deposits,moneymarketacounts,ortimedepositswithstatebanksorganizedunderlouisianalawandnational bankshavingtheirprincipaloficesinlouisiana. F.INVESTMENTS hwestmentsarelimitedbyr.s.3:295andthescholboard'sinvestmentpolicy.iftheoriginalmaturities ofiuvcslmentsexced90days,theyareclasifiedasinvestments;however,iftheoriginalmaturitiesare90days orles,theyareclasifiedascashequivalents. 15

20 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) F.INVESTMENTS(Continued) Theinvestmentsarereflectedatquotedmarketpricesexceptforthefolowingwhicharerequired/permitedas pergasbstatementno.31: 1.Investmentsinom~artic(t~alineinterest-earningcontracts,suchasuomlegotiablecertificatesofdeposit withredemptiontermsthatdonotconsidermarketrates,arereportedusingacost-basedmeasure. 2.TheScholBoardreportedatamortizedcostmoneymarketinvestmentsandparticipatinginterestearninginvestmentcontractstbathavearemainingmaturityatimeofpurchaseofoneyearorles. Interest-earninginvestmentcontractincludetimedepositswithfinancialinstitutions(suchascertificates ofdeposit),repurchaseagrements,andguarantedinvestmentcontracts. Moneymarketinvestmentsareshort-term,highlyliquidebtinshamentsthatincludeU.S.Treasury G.SItOIT-TERMINTERFUNDRECEIVABLES/PAYABLES obligations. DurirJgthecourseofoperations,numeroustransactionsocurbetwenindividualfundsforservicesrendercd Thesereceivablesandpayablesal~clasifiedasiuterfundreceivables/payablesonthebalanceshet. 1.INVENTORIES Inventoriesofthegovernmentalfundtypearerecordedasexpenditureswhenpurchased,exceptforiuveotory ofthescholfodservicefund. Inventoryofthescholfodservice(specialrevenuefund)consistsofodpurchasedbyfileScholBoardand comoditiesgrantedbytheunitedstatesdepartmentofagriculturethroughthelouisianadepartmentof AgricultureandForestry.Thecomoditiesarerecordedasrevenueswhenreceived;however,aliuveltory itemsarerecordedasexpenditurewhenconsumed.unusedcomoditiesatjune30,arereportedasdefered revenue.alpurchasedinventoryitemsarevaluedatcost(first-in,first-out)andcomoditiesarcasigned valuesbasedoninformationprovidedbytheunitedstatesdepartmentofagriculture. 16

21 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) 1.FIXEDASETS FixedasetsusedingovernmentalfundtypesoftheScholBoardarerecordedinthegeneralfixedasets acountgroupatcostorestimatedhistoricalcostifpurchasedorconstructed.donatedfixedasetsarerecorded atheirestimatedfairvalueathedateofdonation.asetsinthegeneralfixedasetsacountgrouparcnot depreciated.interestduringconstructionisnotcapitalizedongeneralfixedasets. Aproximately90%ofixedasetsarevaluedatactualcosts,whiletheremaining10%arevaluedatestimated costbasedontheactualcostoflikeitems. Publicdomain(infi'astructure)generalfixedasets(e.g.roads,bridges,sidewalksandotherasetsthatarc imovableandofvalueonlytothegovernment)arecapitalized.thecostofnormalmaintenanceaudrepairs thatdonotadtotilevalueoftheasetormaterialyextendasets'livesarenotincludedinthegeneralfixed asetsacountgroup. J.DEFEREDREVENUES TheScholBoardreportsdeferedrevenuesonitscombinedbalanceshet.Deferedrevenuesarisewhen resourcesarereceivedbythescholboardbeforeithasalegalclaimtothem,aswhengrantmoniesare receivedpriortofileocurenceofqualifyingexpenditules,losubsequentperiods,whenthescholy;oardhas alegalclaimtotheresources,theliabilityfordeferedrevenueisremovedfromthecombinedbalanceshetand filerevenueisrecognized. K.COMPENSATEDABSENCES Altwelve-monthemployesearnfromtwelvetoeightendaysofsickleaveachyear,dependingontheir lengthofservice.alemployesworkingonanine-monthbasisearntendaysofsickleaveachyear.ninemonthemployeswhoworkduringthesumereceiveanaditionalonedayofsickleaveforeachfourweks ofsmnmerwork.sickleavemaybeacumulatedandcariedforwardtosucedingyearswithoutlimitation. Uponretirementordeath,employesortheirheirsarepaidforthevalueofacumulatedsickleavenotoexced twenty-fivedaysathemploye'scurentrateofpay.underthelouisianateachers'retirementsystemand thelouisianascholemployes'retirementsystem,alunpaidsickleaveisusedintheretirementbenefit colnpatationasearnedservice. Altwelve-monthemployesearnfromtentofiftendaysofvacationleaveachyear,dependingupontheir lengthofservicewiththescholboard.twelve-monthemployesmayacumulateandcaryforwarda maximumofiftendays'vacationtimetosucedingyears.anyemploye'svacationleaveinexcesofiften daysisforfeitedatyearendwithoutcompensation.uponseparationofemployment,alemployes'unused vacationleaveisforfeitedwithoutcompensation.

22 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTEI-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) K.COMPENSATEDABSENCES(Continued) TheScholBoard'srecognitionandmeasurementcriteriaforcompensatedabsencesfolows GASBStatementNo.16providesthataliabilityforsickleaveshouldbeacruedusingoneoftl~efolowing terminationaproaches: A.Anacrualforearuedsickleaveshouldbemadeonlytothextentitisprobablethathebenefits wilresultinterminationpayments,ratherthanbetakenasabsencesduetoilnesorother B.Alternatively,agovernmentalentityshouldestimateitsacruedsickleaveliabilitybasedonthe contingencies,suchasmedicalapointmentsandfunerals. sickleaveacumulatedathebalanceshetdatebythosemployeswhocurentlyarceligibleto receiveterminationpaymentsaswelasotheremployeswhoarexpectedtobecomeligiblein GASBStatementNo.16providesthatvacationleaveandothercompensatedabsenceswithsimilar lhefuturetoreceivesuchpayments. characteristicshouldbeacruedasaliabilityasthebenefitsarearnedbythemployesifbothofthe folowingconditionsaremet: A.Themployes'rightoreceivecompensationareatributabletoservicesalreadyrendered B.Itisprobablethathemployerwilcompensatethemployesforthebenefitsthroughpaidtime Onlythecurentportionoftheliabilityforcompensatedabsencesisreportedinthefund.Thecurentportion oforsomeothermeans,suchascashpaymentsaterminationoretirernent. istheamountleftunpaidathendofthereportingperiodthatnormalywouldbeliquidatedwithexpendable availablefinancialresources.theremainderoftheliabilityisreportedinthegeneralong-termobligations acountgroup.thescholboardusesaproachbtocalculatetheacruedsickleaveliability. I,.LONG-TERMOBLIGATIONS TheScholBoardreportslong-termdebtofgovernmentalfundsatfacevalueinthegeneralong-termdebt acountgroup.certainothergovernmentalfundobligationsnotexpectedtobefinancedwitbcurentavailable financialresourcesarealsoreportedinthegeneralong-termdebtacountgroup. Forgovernmentalfundtypes,bondpremiumsandiscounts,aswelasisuancecosts,arerecognizeduring thecurt'cutperiod.bondprocedsarereportedasa1~otherfina1~eingsourcenetoftheaplicablepremiun~or discount.isuancecosts,evenifwitheldfromtheactualnetprocedsreceived,arereportedasdebtservice expenditures.

23 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTEI-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) M.FUNI)EQUITY ]~.eservationsofundbalancerepresenthoseamountsthatarenotapropriableoralelegalysegregated Reserves foraspecificpurpose. DesignatedFundBalances N.INTERFUNDTRANSACTIONS Designatedfundbalancesrepresententativemanagementplansthataresubjectochange Quasi-externaltransactionsareacountedforasrevenues,expenditures,orexpenses.Transactionsthat constitutereimbursementstoafundforexpenditures/expensesinitialymadefromithatareproperlyaplicable toanotherfiredarerecordedasexpenditures/expensesintilereimbursingfundandasreductionsof expenditures/expensesinthefundthatisreimbursed. O.SALESTAXES TheMorehouseParishScholBoardhastwosalestaxordinancesasfolows P.USEOFESTIMATES

24 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) Q.MEMORANDUMONLY-TOTALCOLUMNS Thetotalcolumnsonthegeneral-purposefinancialstateloentsarecaptioned"MemorandumOnly"toindicate thaitheyarepresentedonlytofacilitatefinancialanalysis.dataij~thesecolunmsdonotprcsenlfinancial position,resultsofoperationsorcashflowsinacordancewithgeneralyaceptedacountingprinciples. Neitherisuchdatacomparabletoaconsolidation,lntefndeliminalioshavenotbenmadeinthe NOTE2-STEWARDSIP,COMPLIANCE,ANDACOUNTABILITY agregationofthisdata. A.DeficitFondBalances/RetaiuedEarnings ThefolowingfundshaveadeficitinthefundbalanceatJune30,198 Fund Generalfund Amount Deficit Specialrevenuefund TitleI $1,017,935 Managementexpectstocorect70%ofthedeficitinthegeneralfundin198-19bycutingcostand 39,361 increasingrevenues.managementexpectsthedeficitobecompletelycorectedbyjune30,20. B.ExcesofExpendituresOverApropriationsinIndividualFunds Thefolowingindividualfundshadactualexpendituresoverbudgetedexpendituresfortheyeareuded June30.198: Fund Unfavorable Generalfund Specialrevenuefunds Title1 $21,816,063$2,786,813$970,750 Budget Actual Vari,.ance MathandScience-TitleI Scholfodservice 2,154,635 Specialfederal 2,05, ,73 2,242,269 2,031,16 49,07 64,68 87,634 26,16 14,

25 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE3-BUDGET/GAPRECONCILIATION ThefolowingschedulereconcilestheamountsontheCombinedStatementofRevenues,ExpendituresandChanges infundbalance-budget(non-gapbasis)toactual,totheamountsonthecombinedstatementofp.evenucs, ExpendituresandChangesinFundBalances: General Special Fund Revenue Fundbalances,endoftheyear(budget) Revenues Localsources:other Statesources:other Federalsources Expenditures Cun-entInstruction: Regularprograms Specialprograms SuportServices: Plantservices DebtServices: Principalretirement Interestandbankcharges Otherfinancingsources Procedsfrominsurance Fundbalances,endoftheyear(GAP) $(1,017,93)$324,021 52,158(63,562) (62,27) (2,356) 2, (103,892) 87,487 16,405 63,562 Budget/GAPreporlingdiferencesforthegeneralandspecialrevenuefundsarearesultofclasificalionandonbehalfpaymentswhicharenotbudgetedbutareincludedforGAPreportingpurposes. NOTE4-LEVIEDTAXES TheScholBoardleviestaxesonrealandbusinespersonalpropertylocatedwithiuMorehouseParish'sboundaries. ProperlytaxesarcleviedbytheScholBoardonproperlyvaluesasesedbytheMorehouseParishTaxAsesor andaprovedbylhestateoflouisianataxcomision. TheMorehouseParishSherif'sOficebilsandcolectsalpropertytaxesfortheScholBoardexceptforthe propertylocatedinthecityofbastropwhichisbiledandcolectedbythecityofbastrop.colectionsareremited tothescholboardmonthly. PropertyTaxCalendar Taxbilsmailed Totaltaxesaredue Liendale Penaltiesandinterestareaded Parish(ExceotCityofBastro AboutNovemberlS,197 December31,197 January1,198 January1, CityofBastr0p AboutNovember15,197 December31,197 March15,198 March15,198

26 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements NOTE4-LEVIEDTAXES(Continued) AsofandfortheYearEndedJune30,198 AsesedvaluesarestablishedbytheMorehouseParishTaxAsesoreachyearonauniformbasisathefolowing ratiosofasesedvaluetofairmarketvalue. 10%land 10%residentialimprovements 15%industrialimprovements 15%machinery 15%comercialimprovements Arevaluationofalpropertyisrequiredafter1978tobecompletednolesthaneveryfouryears.Thelastrevaluation 25%publicserviceproperties,excludingland wascompletedfortherolofjanuaryl,196.totalasesedvaluewas$123,989,260incalendaryear197. Louisianastatelawexemptsthefirst$7,50ofasesedvalueofataxpayer'sprimaryresidencefromparishproperty taxes.thishomesteadexemptionwas$27,601,370oftheasesedvalueincalendaryear197. Statelawrex]uirestheMorchouseParishSherifsDepartmentocolectpropertytaxesinthecalendaryearinwhich theasesmentismade.propertytaxesbecomedelinquentjanuary]andmarch15asnotedintheaboveproperty laxcalendarofthefolowingyear.iftaxesarenotpaidbytheduedate,taxesbeat"interestatherateof1.25%per monthuntilthetaxesarepaid.afternoticeisgiventothedelinquentaxpayers,themorehouseparishsherifs l)epartmentisrequiredbytheconstitutionofthestateoflouisianatoseltheleastquantityofpropertynecesary tosetletiletaxesaudinterestowed. Alpropertytaxesarerecordedinthegeneralfundandebtservicefund.Revenuesinsuchfundsarerecognized intileacountingperiodinwhichtheybecomemeasurableandavailable.propertytaxesareconsideredmeasurable inthecalendaryearofthetaxlevy.estimateduncolectibletaxesarethosetaxesbasedonpastexperiencewhichwil notbecolectedinthesubsequentyearandareprimarilyduetosubsequentadjustmentstothetaxrol.available meansdue,orpastdue,andreceivablewithinthecunentperiodandcolectedwithinthecurentperiodorexpected tobecolectedsonenoughthereaftertopayliabilitiesofthecurentperiod.theremainingpropertytaxesreceivable areconsideredavailablebecausetheyaresubstantialycolectedwithin60daysubsequentoyear-end. Tl~etaxrolispreparedbyfileparishtaxasesorinNovemberofeachyear;therefore,theamountof198property taxestobecolectedocursindecember198andjanuaryandfebruaryof19.asaresult,nopropertytaxes receivablefor198taxesisincludedontheacompanyingbalanceshetbecauseitisnotavailablewithin60days ofthescholboardsyear-end. Historicaly,virtualyaladvaloremtaxesreceivablewerecolectedsincetheyaresecuredbyproperty.Therefore, thereisnoalowanceforuncolectibletaxes.

27 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE4-LEVIEDTAXES(Coninucd) Thefolowingisasumaryofauthorizedandlevied(taxrateper$1,0AsesedValue)advaloremtaxes Parish-widetaxes: Constitutional Maintenanceandoperation Maintenanceandoperations 192Capitalprogramtax NOTE5-CASItANDCASHEQUIVALENTS Authorized Milage g Levied Milage Expiration Date Statu AtJune30,198,theScholBoardhadcashandcashequivalents(bokbalances)totaling$195,090asfolows Demandeposits Interest-bearingdemandeposits Timedeposits Totaldeposits Les:Timedepositsclasifiedasinvestments Totalcashandcashequivalents CashandcashequivalentsperstatementA Les:bankoverdraftperstatementA Totalcashandcashequivalents $71, , ,0 45, ,0(I $908, ,327 Thesedepositsarestatedatcost,whichaproximatesmarket.Understatelaw,thesedeposits(ortheresultingbank balances)mustbesecuredbyfederaldepositinsuranceor'thepledgeofsecuritiesownedbythefiscalagentbank. Themarketvalueofthepledgedsecuritiesplusthefederaldepositinsurancemustataltimesequalthemnounton depositwiththefiscalagenl.thesesecuritiesareheldinthenameofthepledgingfiscalagentbankinaholdingor custodialbankthatismutualyaceptabletobothpaties. Atyear-end,theScholBoard'scaryingamountofdepositswas$45,090andthebankbalancewas$1,974,620Of thebankbalance,$32,130wascoveredbyfederaldepositoryinsuranceorbycolateralheldbythescholboard's agentinthescholboard'sname(gasbcategory1).theremainingbalanceof$1,642,490wascolateralizcdwith securitiesheldbythepledgingfinancialinstitution'strustdepartmentoragentbutnotinthescholboard'sname (GASBCategory3). Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category3)undertheprovisionsofGASB statement3,louisianarevisedstatute39:129imposesastatutoryrequirementonthecustodialbanktoadvertise andselthepledgedsecuritieswithin10daysofbeingnotifiedbythescholboardthathefiscalagenthasfailed topaydepositedfundsupondemand.

28 MorchouseParishScholBoard NotestotileGeneral-PurposeFinancialStatements NOTE6-INVESTMENTS AsofandfortheYearEndedJune30,198 Investmentsarecategorizedintothesethrecategoriesofcreditrisk: 1.Insuredoregistered,orsecuritiesheldbytheScholBoardoritsagentinthename 2.Uninsuredandunregistered,withsecuritiesheldbythecounterparty'strustdepartmentoragentiltile 3.Uninsuredandunregistered,withsecuritiesheldbythecounterparty,orbyitstrustdepartmentoragent ScholBoard'sname. Atyearend,timScholBoardinvestmentbalanceswereasfolows butnotintilescholboard'sname. Typeofinvestment Certificateofdeposit -L Cate~rorv 2 FairAmortized ValueCostCost Carvin~Amoun Canying Alnounl NOTE7-RECEIVABI,ES Totalinvestments ~50,0Q.$- 252~50.0$ $ $ -$250,0$250,0 Total Thereceivablesof$2,354,943atJune30,198,areasfolows Clasof Receivable General Fund Special Revenue Funds Service TaxesSalesanduse Debt Fond Capital Projects Fund Tolal lutergovernmental-grants Advalorem $286,829$ Federal 2,298 $ $ StateOther 157,782 52,393 Total 17,26 1,29,456 12, ,829 4,538 1,20384, ,84].~541,314 1,351, ,413

29 MorchouseParishScholBoard NotestolheGeneral-PurposeFinancialStatements NOTE8-FIXEDASETS AsofandfortheYearEndedJune30,198 Thechangesingeneralfixedasetsareasfolows Jul,/1,197Aditions Balance LandBuildings Furnitureandequipment $240,013$ Deletions~une30,198 Balance 2,715,9761,09,816 7,56, ,949 $ 267,5317,907,76 $240,013 23,815,792 NOTE9-RETIREMENTSYSTEMS plandescription SubstantialyalScholBoardemployesparticipateineithertheTeachers'RetirementSystemortheLouisiana ScholEmployes'RetirementSystem(theSystems),whicharecost-sharing,multiple-employerpublicemploye retirementsystems(p["rs).benefitprovisionsareultimatelyaprovedandamendedbythelouisianalegislature. ParticipationintheTeachers'RetirementSystemisdividedintotwoplans-theTeachers'RegularPlanandthe Teachers'PlanB.Ingeneral,profesionalemployes(suchasteachersandprincipals)andlunchromworkersarc membersofthelouisianateachers'retirementsystem(trs);otheremployes,suchascustodialpersonelandbus drivers,aremembersofthelouisianascholemployes'retirementsystem(lsers).generaly,alful-time employesareligibletoparticipateinthesystem. WithrespectotheTeachers'RetirementSystemRegularPlan,normalretirementisatage60with10yearsofservice, oratanyagewith20yearsofservice.theformulaforanualmaximumretirementbenefitsisgeneraly2%(with lesthan25yearsofservice)or2.5%(with25ormoreyearsofservice)timestheyearsofcreditableservicetimes theaveragesalaryofthe36highestsucesivemonths(plus$30aplicabletopersonsbecomingmemberspriorto July1,1986). UndertheTeachers'RetirementSystemPlauB,normalretirementisatage5withatleast30yearsofcreditable serviceoratage60withatleast10yearsofcreditableservice.theretirementbenefitfomlaisgeneraly2%times theyearsofcreditableservicetimestheretires'averagesalaryofthe36highestsucesivemonths. EmployesparticipatingintheScholEmployes'RetirementSystemareligiblefornormalretirementafter30years ofservice,orafter25yearsofserviceatage5orafter10yearsofserviceatage60.themaximumretirement alowanceiscomputedat2.5%timesthehighest36monthsofaveragesalary,timestheyearsofserviceplusa suplementof$2.0permonthtimestheyearsofservice.

30 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE9-RETIREMENTSYSTEMS(Continued) BothTRSandLSERSisueanualfinancialreports.Thereportscanbeobtainedbytelephoningorwritingtothe folowing: Teachers'RetirementSystemofLouisiana PostOficeBox94123 BatonRouge,Louisiana (25) FundingP01icv LouisianaScholEmployes'RetirementSystem PostOficeBox4516 BatonRouge,Louisiana70804 (25) Eachsystemisadministeredandcontroledathestatelevelbyasepm'ateboardoftrustes,withcontributionrates aprovedandamendedbythelouisianalegislature.benefitsofthesystemsarefundedbyemployeandemployer contributions.benefitsgrantedbytheretirementsystemsareguarantedbythestateoflouisianaunderprovisions ofthelouisiauaconstitutionof1974.thescholboard'semployercontributionforthetrs,asprovidedbystate law,isfundedbythestateoflouisianathroughanualapropriations,bydeductionsfiomlocaladvaloremtaxes, andbyremitancesfromthescholboard.forthelsers,thescholboard'semployercontributionisfundedby thestateoflouisianathroughanualapropriations, Inadition,themployerdoesnotremitotheTeachers'RetirementSystem,RegularPlanorPlanB,themployer's contributionfortheprofesionalimprovementprogram(pip)portionofpayrol.thepipcontribntionismade directlytotheretirementsystembythestateoflouisiana. ConlrJbntionrates(asapercentageofcoveredsalaries)foractiveplanmembersasestablishedbytileLouisiaua LegislaturefortheyearendedJue30,198areasfolows: Employe Employmz LouisianaTeachers'RetirementSystem: Regular PlanA LouisianaScholEmployes'RctiremeutSystem 8.0% 5.0% 6.35% 16.40% 16.40% 6.0% TotalcoveredpayroloftheSclmolBoardforTRS-RegularPlan,TRS-PlanB,andLSERSfortheyearended June30,198amountedto$12,084,69,$619,424,and$1,376,906respectively.Employercontributionsforthe yearendedjune30,198arideachofthetwoprecedingyearsareasfolows: Fiscal Year ~nding June30,196 June30,197 June Anual ActuariaUy Required ContribuLi~ $1,98,646 2,089,393 2,242,981 TRSPercentage ofamal Required Contribution _Paid 95.16% 92.32% 92.89%.LSERS Aoua[ Aciuarialy Required Contribution $72,823 82,19 82, % 10.36% 10.4%

31 MorehouscParishScholBoard NotestotheGeneral-PurposeFinancialStatements NOTE9-RETIREMENTSYSTEMS(Continued) AsofandfortileYearEndedJune30,198 Anualactarialyrequiredcontributionsforeachplanaboveisbasedontheplan'sanualfinancialreportforthat yearexceptfortheyearendedjune30,198.eachanualactuarialyrequiredcontributionfortheyearended June30,198isbaseduponeachplan'sanualfinancialreportfortheyearendedJune30,197whichisthelatest informationavailable. NOTE10-OTItERPOST-EMPLOYMENTBENEFITS TheScholBoardprovidescertaincontinuinghealthcareandlifeinsurancebenefitsforitsretiredemployecs. SubstantialyaloftheScholBoard'semployesbecomeligibleforthesebenefitsiftheyreachnormalretirement agewhileworkingforthescholboard.thesebenefitsforetiresandsimilarbenefitsforactivemployesare providedthrougbthestateemployesgroupbenefitsprogram.thecostofbenefitsforcurentretiredemployes ispaidjointlybyfilemployeandbythescholboard.thescholboard'sportionofthecostisrecognizedasan expenditurewhenthemouthlypremiumsarepaid.tbecostofretirebenefitsfor198totaled$1,06,185for43 retires. NOTE1-ACOUNTS,SALARIESANDOTHERPAYABLES Thepayablesof$2,3,349atJune30,198,areasfolows General Salariesandwitholding Fund SpecialCapital RevenueProjects Acounts Incuredbutnotreportedclaims $1,429, ,536 $289,963$ FundsFundsTotal NOTE12-COMPENSATEDABSENCES Total 49, ,097235,497$1,719, ,130 ~1,75,792$32,060$235,492$2,3,349 49,159 AtJune30,198,employesoftheScholBoardhaveacumulatedandvested$1,145,809ofemployeleave benefits,including$14,818ofsalaryrelatedbenefits.thesemployeleavebenefitswerecomputedinacordance withgasbcodificationsectionc60.thismnountisnotexpectedtobepaidfromcurentavailableresources; therefore,theliabilityof$1,145,809isrecordedwithinthegeneralong-termobligationsacountgroup.

32 MorehouseParishScholBoard NotestotileGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE13-CIANGESINAGENCYFUND-DEPOSITSDUEOTHERS Asunaryofchangesinagencyfundepositsdueothersfolows Balance,July1,197 Aditions Deductions Balance,June30,198 NOTE14-LEASES $241,921 1,0i6,464 1,03,09 $25,286 CapitalLeases.TileScholBoardrecordsitemsundercapitaleasesasauasetandanobligationintile acompanyingfinancialstatements.thefolowingisananalysisofcapitaleases: Type Cmnputerlab Scholbuses Mower Computerlab Recorded Amount $172,264 5,504 7,45 4,287 Tilerenlainingminimumleasepaymentsundercapitaleases,andtilepresentvalueofthenetmiuiumlease paymentsatjune30,198areasfolows: YearendingJune Totalminimumleasepayments Lesamountrepresentinginterest Computer12Schol Computer Lab BusesMowerLab To!al $124,23 39,361124,23 39,361 _2,623248,46 19,051 $2,813$25,168$152, ,063 3, ,168 2,074316,27 23,913 Presentvalueofutureminimum leasepaymeuts $36,738$29,415353AJ2$23,094.$292,.364

33 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements NOTE15-CItANGESINGENERALONG-TERMOBLIGATIONS Asofandfor[heYearEndedJune30,198 Thefolowingisasumaryofthelong-termobligationtransactionsfortheyearendedJune30,]98 CertificateofNotePayableCapitalCompensated Balance,June30,197 IndebtednesEPA LeasesAbsences Total Aditions Balance,June30,198 Deductions $2,83,0 1,78,0 $60,297$486,712$80,321 Individualgeneralobligationisuesareasfolows $1,045,0 5,0194, ,460 61,972 $4,260,30 2,049, ,460 Obligation Certificateofindebtednes OriginalIsueRateMaturitvDatcOutstanding Interest Principal Series193 EPAnote Series194 Series195 $5,0,0 2,50,0 240,0 5.50% % 6.50% 0.0% Nov.l,198 Oct.l,20 May30,2012 $563,0 340,0 142,0 5,297 Theobligationsaledueasfolows YearEndingJune30. Principal 19 Payments Interest 201 $963,0 Payments 62,0 35,0 $32,249$95,249 Total Thereafter 4,745 5, ,975 6,745 Total 30,297 30,297 5,0 29

34 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements AsofandfortheYearEndedJune30,198 NOTE16-INTERFUNDASETS/LIABILITIES Duefrom/tothers P,eceivableFund PavaNeFund Gcnera Specialrevenuefunds TitleI TitleVI MathandScience-Title1 SumerSchol Preschol MiscelaneousStateGrants ScholFodService DragFre-TitleIV SpecialFederal DebtService DebtService Specialrevenuefunds: TitleI TitleVI MathandScience-Title]1 SpecialEducation SumerSchol Preschol MiscelaneousStateGrants DrugFre-TitleIV SpecialFederal Capitalprojectfunds: ScholDistrictsNo.2andNo.3Merged CapitalImprovements General General General General General General General General General General Capitalprojectfunds: Capitalhnprovements 30 Amount $1,05,358 8, ,156 14,80 28,861 2,92 1, , ,145 1,69 1,638 3,415 26,36 1,743 63, , !90,0 $2,417,846

35 MorehouseParishScholBoard NotestotheGeneral-PurposeFinancialStatements Baslrop,Louisiana NOTE17-RESERVEDFUNDBA1,ANCES AsofandfortheYearEndedJune30,198 Reservations DebtServiceThisamountrepresentstheportionofundbalancethathasbenreservedinthedebtservice fundforfilurepaymentofprincipalandinterestonbondedebt. InventoryThisamountrepresentstheportionofundbalancerelatingtoinventoryonhandwhichis thereforeunavailabletobexpendedforotherpurposes. Workers'CompensationClaimsTheamountrepresentstheportionofundbalancethathasben NOTE18-LITIGATIONANDCLAIMS reservedtocoverposibleworkers'compensationclaims. l_atigation TheScholBoardisadefendantinseveralawsuits.ManagementandlegalcounselfortileScholBoard believethaithepotentialclaimsagainsthescholboardnotcoveredbyinsurancewouldnotmaterialyafel thescholboard'sfinancialposition. GrantDisalowance TheScholBoardparticipatesinanumberofstateandfederalyasistedgrantprograms.Theprogramsare subjectocomplianceauditsunderthesingleauditaproach.suchauditscouldleadtorequestsfor reimbursementbylbegrantorageucyforexpendituresdisalowedundertermsofthegrants.thescholboard's managementbelievesthatheamountofdisalowances,ifauy,whichmayarisefi'omfutureauditswilnoti)e material. TaxArhitra~eRebate UndartheTaxReformActof1986,interestearnedonthedebtprocedsinexcesofinterestexpeusepriorto lhcdisbursementoftheprocedsumstberebatedtothelutenmlrevenueserviceors).mauagementbelieves thereisnotaxarbitragerebateliabilityatyearend. Self-Insurance TheScholBoardispartialyself-insuredforworkers'compensation.TheScholBoardmaintainstop-los coveragewithaniusuraucecompanyforclaimsinexcesof$20,0perocurenceforeachemployefor workers'compensationinsurancecoverage.alknownclaimsfiledandanestimateofiucuredbutnotreported claimsbasedonexperienceofthescholboardaremadeandacruedasnecesaryinthefinancialstatements. Aportionofundbalanceofthegeneralfundhasbendesignatedforpaymentofutureclaims.