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Transcription

1 GeneralPurposeFinancialStatementsWith TOWNOFCLAYTON,LOU/S/ANA AsofandfortheYearEndedJune30,203 WithSuplementalInformationSchedules IndependentAuditor'sReport Underprovisionsofstatelaw,thisreportisepublic document.acopyofthereporthasbensubmitedto thentityandotherapropriatepublicoficials.the reportisavai;ableforpublicinspectionathebaton RougeoficeoftheLegLslativeAuditorand,where apropriate,atheoficeoftheparishclerkofcourt. Re~easeUate1,2./,'q"03

2 TOWNOFCLAYTON,LOUISIANA YEARENDEDJUNE30,203 TABLEOFCONTENTS SECTIONI-GENERALPURPOSEFINANCIALSTATEMENTS IndependentAuditor'sReport Combinedbalanceshet-alfundtypesandacountgroups Combinedstatementofrevenues,expendituresandchanges Combinedstatementofrevenues,expendituresandchanges infundbalances-algovernmentalfundtypes infundbalances-budgetandactual-general,debtservice Comparativestatementofrevenues,expensesandchanges andcapitalprojectsfunds Comparativestatementofcashflows-enterprisefund infundequity-enterprisefund Notestofinancialstatements SECTIONH-SUPLEMENTALINFORMATIONSCHEDULES GeneralFund: Comparativebalanceshet Statementofrevenues,expendituresandchangesinfund Statementofexpenditurescomparedtobudget(GAPBasis) balance-budget(gap.basis)andactual DebtServiceFund: Combiningbalanceshet Combiningstatementofrevenues,expendituresandchanges infundbalance CapitalProjectsFund: Balanceshet. Statementofrevenues,expendituresandchangesinfundbalance budgetandactual-lcdbgblockgrantprogram GeneralLong-TermDebtAcountGroup: Statementofgeneralong-termdebt ScheduleofCompensation CompensationPaidAldermen PAGE I

3 TOWNOFCLAYTON SECTIONHI-COMPLIANCE/INTERNALCONTROL ReportonComplianceandonInternalControloverFinancial ReportingBasedonandAuditofFinancialStatementsPerformed inacordancewithgovernmentalanditln~standards SECTIONIV-SCHEDULEOFINDINGSANDQUESTIONED COSTS 39 ScheduleofFindingsandQuestionedCosts SumaryofScheduleofPriorAuditingFindings ResponsefromClient 43

4 SECTIONI-GENERALPURPOSEFINANCIALSTATEMENTS -1-

5 SWITZER,HOPKINS&MANGE CertifiedPublicAcountants DEN]NtISR.SWITZER,CPA FERIDAY,LOUISIANA7134 POSTOFICEBOX478 t~myleshopkins,cpa SUSANLMANGE,CPA 1840NORTHE.E.WALACEBLVD. JOHNM,JONES,CPA INDEPENDENTAUDITORS'REPORT OFICESINATCHEZ,MISISIPI FERIDAY,LOUISIANA7134 TELEPHONEO18) FAX(601) HonorableWilbertWashington,Mayor Clayton,Louisiana andmembersoftheboardofaldermen WehaveauditedtheacompanyingeneralpurposefinancialstatementsoftheTownofClayton,Louisiana statementsaretherosponsibilityoftownofclayton,louislana'smanagement.ouresponsibilityisto expresanopiniononthosegeneralpurposefinancialstatementsbasedonouraudit. asofandfortheyearendedjune30,203,aslistedinthetableofcontents.thosegeneralpurposefinancial WeconductedourauditinacordancewithgeneralystandardsgeneralyaceptedintheUnitesSta~sof AmericandGovernmentAuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates.Those standardsrequirethatweplanandperformtheauditobtainreasonableasuranceaboutwhetherthe financialstatementsarefreofmaterialmistatement.anauditincludesexamining,onatostbasis,evidence suportingtheamountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingthe acountingprinciplesusedandsignificantestimatesmadebymanagement,aswelasevaluatingtheoveral financialstatementpresentation.webelievethatoutauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inalmaterial respects,thefinancialpositionoftownofclayton,louisiana,asofjune30,203,andtheresultsofits operationsandthecashflowsofitsproprietaryfundtypesfortheyearthenendedinconformitywith acountingprinciplesgeneralyaceptedintheunitedstatesofamerica. Ourauditwasmadeforthepurposeoforminganopiniononthegeneralpurposefinancialstatements takenasawhole.thesuplementalinformationscheduleslistedinthetableofcontentsarepresentedfor thepurposeofaditionalanalysisandarenotarequiredpartofthegeneralpurposefinancialstatementsof thetownofclayton,louisiana.suchinformationhasbensubjectedtotheauditingproceduresapliedin thexaminationofthegeneralpurposefinancialstatementsand,inouropinion,isfairlystatedinal materialrespectsinrelationtothegeneralpurposefinancialstatementstakenasawhole. InacordancewithGovernmentAuditingStandards,wehavealsoisuedareportdatedNovember14,203 onourconsiderationofthetownofclayton,louisiana'sinternalcontrolstructureandonitscompliance withlawsandregulations,contractsandgrants.thatreportisanintegralpartofanauditperformedin acordancewithgovernmentauditingstandards,andshouldbereadinconjunctionwiththisreportin consideringtheresultsofouraudit. Feriday,Louisiana November14,203-2-

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7 Thefolowingnotesareanintegralpartofthesestatements. -4- TOWNOFCLAYTON,LOUISIANA YEARENDEDJUNE2;0,203 Revenues: Taxes General Capital Licensesandpermits Intergovernmental $62,919$ Chargesforservices 4,642 Fines 1,60 $ Proiets (MemorandumOnly) Totals 202 Miscelaneous 4,791 56,462 $62,919~642 58,062 $64,869 4,53 Expenditures: TOtalrevenues 23r190 9% ,462 24,028 4,791 8, ~42 168,80 7,52 3~8 Generalgovernment Garbagecolection Policedepartment Capitaloutlay Stretdepartment 27,508 20,84 27,508 10,501 Debtservice: 48,120 20,84 Principalpayment 56,462 10,501 24~01 48,120 20,46 56,462 48,867 8~17 9,724 Interestandfiscalcharge Totalexpenditures 107,013 2,80 2,080 56~462 16~275191,575 2,O080 2O 90 (Deficiency)ofrevenues overexpenditures Otherfinancingsources: (9,871) (1,962) (1,83)(2,695) Operatingtransfersin Exces(deficiency)ofrevenues andotherfinancingsources Fundbalances,begining overexpenditures 19,129 (1,962) Fundbalances,ending $37,58$2~153 18~ $ 17,167 3,164 5$59746$42,579 42,579 39,415

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9 TOWNOFCLAYTON,LOUISIANA Operatingrevenues: Chargesforservices Operatingexpenses: Gaspurchases Salaries Materialandsuplies Depreciation Repairs Miscelaneous Truckandtractorexpense Utilitiesandtelephone OficeSuplies Payroltaxes Insurance Legalandacounting Badebtexpense Totalexpenses Operating(los) Nonoperatingrevenues(expenses): Interestincome Interestexpense Totalnonoperatingrevenues(expenses) (Los)beforeoperatingtransfers Operatingtransfers(out) Net(los) Contributionsfromcapitalprojects Fundbalance,begining YearsEndedJune30,203and _.~ ,656 53,78 14,24 96,16 9,683 19,32 4,850 18,034 4,147 4,275 24,140 3,0 7, ,143 6,47 51,620 18,603 94,853 29,081 15,292 4,810 8,643 3,707 4,979 17,057 3,350 9,0 327,472 (4,926)(36,574) 1,109 2,212 (2,230)(2,985) (1,121) (73) (46,047) (37,.347) (29,0)(25,859) (75,047) (63,206) 56,462 86,17 1,90~341,967,423

10 TOWNOFCLAYTON,LOUISIANA YEARSENDEDJUNE30,203AND202 (Memorandum Only) Cashreceivedfromcustomers Cashpaymentstosupliersforgods Cashpaymentstoemployesforservices andservices $285,126$282, _2 (181,715) Netcashprovidedby operatingactivities (53,78) (176,621) (51,620) Operatingtransfers(to)otherfunds Increaseinconsumerdeposits (29,0) Netcashprovidedbynon-capital 715 (25,859) 190 financingactivities Procedsfromborowing Interestpaidonotes Principalpaidonotes (2,350) Netcashusedbycapitalandrelatedfinancingactivities (10,260) (2,908) 02,610) (7,971) (1,879) 9,0 Interestincome 1,359 2,192 Netincreaseincashandcashequivalents CashandcashequivalentsatJuly1,202 10,097 29,365 CashandcashequivalentsatJune30, ,090$12,93 12,93 83,628 Operating(los) Adjustmentstoreconcileoperating(los)to netcashprovidedbyoperatingactivities: $(4,926)$(36,574) Depreciation Changesinasetsandliabilities: 96,16 94,853 Decrease(increase)inacountsreceivable Netcashprovidedbyoperatingactivities Increase(decrease)inacountspayable (8,46) 6,909 (7,936) $49,63$ ,378 Thefolowingnotesareanintegralpartofthesestatements. -7-

11 TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTESTOTHEFINANCIALSTATEMENTS INTRODUCTION 1.TheTownofClayton,LouisianawasincorporatedundertheprovisionsoftheLawrason ActasaVilagein Thepurposeofthemunicipalityistoprovideutilityservices,publicsafety(policeand 3.TheBoardofAldermenconsistsofivelectivemembersandtheyarepaid$150per fire),strets,sanitationandgeneraladministrativeservices. month. 4.TheTownislocatedinthenorthernportionofConcordiaParish,Louisiana.Concordia ParishislocatedinNortheastLouisiana. 5.ThepopulationofClayton,Louisianais875persons. 6.TheTownofClayton,Louisianahasfourfultimemployesandtwopartime 7.TheTownofClayton,Louisianahasaproximately30utilitycustomers. employes. NOTE1-SUMARYOFSIGNIFICANTA TheacompanyingfinancialstatementsoftheTownofClayton,Louisianahaveben A.BASISOFPRESENTATION preparedinconformitywithgeneralyaceptedacountingprinciples(gap)asapliedto governmentalunits.thegovernmentalacountingstandardsboard(gasb)isthe aceptedstandardsetingbodyforestablishingovernmentalacountingandfinancial reportingprinciples. B.REPORTINGENTITY Asthemunicipalgoverningauthority,foreportingpurposes,theTownofClayton, Louisianaisconsideredaseparatefinancialreportingentity.Thefinancialreportingentity consistsof(a)theprimarygovernment(municipality),(b)organizationsforwhichthe primarygovernmentisfinancialyacountable,and(c)otherorganizationsforwhichthe natureandsignificanceoftheirelationshipwiththeprimarygovernmentaresuchthat exclusionwouldcausethereportingentity'sfinancialstatementstobemisleadingor incomplete. -8-

12 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE1-SUMARYOF GASBStatementNo.14establishedcriteriafordeterminingwhichcomponentunitshould G beconsideredpartofthetownofclayton,louisianaforfmaneialreportingpurposes.the basicriterionforincludingapotentialcomponentunitwithinthereportingentityis financialacountability.thegasbhasetforthcriteriatobeconsideredindetermining financialacountability.thiscriteriaincludes: 1.Apointingavotingmajorityofanorganization'sgoverningbody,and a)theabilityofthemunicipalitytoimposeitswilonthatorganization,and/or b)thepotentialsfortheorganizationtoprovidespecificfinancialbenefitor imposespecificfinancialburdensonthemunicipality. 2.Organizationsforwhichthemunicipalitydoesnotapointavotingmajoritybut 3.Organizationsforwhichthereportingentityfinancialstatementswouldbe arefiscalydependentonthemunicipality. misleadingifdataoftheorganizationwerenotincludedbecauseofthenatureor Asrequiredbygeneralyaceptedacountingprinciples,thesefinancialstatementspresent significanceoftherelationship. thetownofclayton,louisiana(theprimarygovernment)anditscomponentunits.there arenocomponentunitsincludedintheacompanyingfinancialstatementsaseitherblended withthemunicipalityfundsordiscretelypresented. C.FUNDACOUNTING Themunicipalityusesfundsandacountgroupstoreportonitsfinancialpositionandthe resultsofitsoperations.fundacountingisdesignedtodemonstratelegalcomplianceand toaidfinancialmanagementbysegregatingtransactionsrelatingtocertaingovernment Afundisaseparateacountingentitywithaserf-balancingsetofacounts.Ontheother functionsoractivities. hand,anacountgroupisafinancialreportingdevicedesignedtoprovideacountabilityfor certainasetsandliabilitiesthatarenotrecordedinthefundsbecausetheydonotdirectly afectnetexpendableavailablefinancialresources. Fundsofthemunicipalityareclasifiedintotwocategories:governmentalandproprietary. Inturn,eachcategoryisdividedintoseparatefundtypes.Thefundclasificationsanda descriptionofeachexistingfundtypefolow:

13 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED GovernmentalFunds GovernmentalfundsareusedtoacountforaHormostofthemunicipality'sgeneral activities,includingthecolectionandisbursementofspecificorlegalyrestricted monies,theacquisitionorconstructionofgeneralfixedasets,andtheservicingof generalongtermdebt.governmentalfundsinclude: 1.GeneralFund-thegeneraloperatingfundofthemunicipalityandacountsfor 2.DebtServiceFunds-acountfortransactionsrelatingtoresourcesretainedand alf'mancialresources,excepthoserequiredtobeacountedforinotherfunds. recordedinthegeneralongtermobligationsacountgroup. usedforthepaymentofprincipalandinterestonthoselongtermobligations 3.CapitalProjects-acountfortransactionsrelatingtoprocedsofspecificrevenue sourcesthatarelegalyrestrictedtoexpendituresforspecificpurposes. ProprietaryFunds Proprietaryfundsareusedtoacountforactivitiesimilartothosefoundintheprivate sector,wherethedeterminationofnetincomeisnecesaryorusefultosoundfinancial administration.proprietaryfundsdiferfromgovernmentalfundsinthatheirfocusis onincomemeasurement,which,togetherwiththemaintenanceofequity,isanimportant financialindicator.proprietaryfundsinclude: Enterprisefunds-acountforoperations(a)wheretheintentofthegoverning bodyisthathecosts(expenses,includingdepreciation)ofprovidingodsor servicestothegeneralpubliconacontinuingbasisbefmancedorecovered primarilythroughusercharges,or(b)wherethegoverningbodyhasdecidedthat periodicdeterminationofrevenuesearned,expensesincured,and/ornetincome isapropriateforcapitalmaintenance,publicpolicy,managementcontrol, acountability,orotherpurposes. GeneralFixedAsetsandLongTermDebt Theacountingandreportingtreatmentapliedtotheproperty,plantandequipment andlong-termliabilitiesasociatedwithafundaredeterminedbyitsmeasurementfocus. Algovernmentalfundtypeoperationsareacountedforonaspendingor"financial flow"measurementfocusandonlycurentasetsandcurentliabilitiesaregeneraly includedontheirbalanceshets. -lo-

14 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE1-SUMARYOFSI GPO Fixedasetsusedingovernmentalfundtypeoperations(generalfixedasets)are acountedforinthegeneralfixedasetsacountgroupandarerecordedas expendituresinthegovernmentalfundtypeswhenpurchased.thetownhaselectedto notcapitalizepublicdomain("infrastructure")fixedasetsconsistingofcertain improvementsotherthanbuildings,includingroads,bridges,sidewalksandrainage improvements.nodepreciationhasbenprovidedongeneralfixedasets. Long-termliabilitiesexpectedtobefinancedfromgovernmentalfundsareacountedfor inthegenerallong-termdebtacountgroup. Alproprietaryfundsareacountedforonacostofservicesor"capitalmaintenance" measurementfocus,andalasetsandaliabilities(whethercurentornoncurent) asociatedwiththeiractivityareincludedontheirbalanceshets. Depreciationofalexhaustiblefixedasetsusedintheproprietaryfundischargedasan usefulivesusingthestraight-linemethodasfolows: expenseagainstheiroperations.depreciationhasbenprovidedoverthestimated Vehiclesandequipment Gaslines,Sewerlinesandplant 50years 3to10years D.BASISOFACOUNTING Alfixedasetsarestatedahistoricalcost. Basisofacountingreferstowhenrevenuesandexpendituresorexpensesarerecognizedin theacountsandreportedinthefinancialstatements.basisofacountingrelatestothe timingofthemeasurementmade,regardlesofthemeasurementfocusaplied. Algovernmentalfundsareacountedforusingthemodifiedacrualbasisofacounting. Theirevenuesarerecognizedwhentheybecomemeasurableandavailableasnetcurent asets.taxpayer-asesedincome,grosreceiptsandsalestaxesareconsidered "measurable"wheninthehandsofcolectingovernmentsandarerecognizedasrevenueat thatime.anticipatedrefundsofsuchtaxesarcrecordedasliabilitiesandreductionsof revenuewhentheyaremeasurableandtheirvaliditysemscertain. Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacountingwhen therelatedfundliabilityisincured.anexceptiontothisgeneralruleisprincipaland interestongeneralong-termdebtwhichisrecognizedwhendue. -1-

15 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPO Alproprietaryfundsareacountedforusingtheacrualbasisofacounting.Their revenuesarerecognizedwhenearnedandtheirexpensesarerecognizedwhenincured. Badebtsarerecognizedwhentheybecomeuncolectable. E.BUDGETSANDBUDGETARYACOUNTING TheTownfolowstheseproceduresinestablishingthebudgetarydatareflectedinthese financialstatements: 1.TheTownpreparesaproposedbudgetandsubmitsitotheMayorandBoardof Aldermenolaterthanfiftendayspriortothebeginingofeachfiscalyear.The 2.Asumaryoftheproposedbudgetispublishedandthepublicnotifiedthathe Townaprovesabudgetforthegeneralfundonly. proposedbudgetisavailableforpubfieinspection.athesametime,apublichearing iscaled. 3.Apublichearingisheldontheproposedbudgetatleastendaysafterpublicationof 4.Aftertheholdingofthepublichearingandcompletionofalactionecesaryto thecalforthehearing. finalizeandimplementhebudget,thebudgetisadoptedthroughthepasageofan ordinancepriortothecomencementofthefiscalyearforwhichthebudgetisbeing 5.Budgetaryamendmentsinvolvingthetransfertofundsfromonedepartment, adopted. programorfunctiontoanotherorinvolvingincreasesinexpendituresresultingfrom revenuesexcedingamountsestimated,requiretheaprovaloftheboardof Aldermen. 6.Albudgetaryapropriationslapseathendofeachfiscalyear. 7.Budgetsareadoptedonabasisconsistentwithgeneralyaceptedacounting principles(gap).budgetedamountsareasoriginalyadopted,orasamended fromtimetotimebytheboardofaldermen.suchamendmentswerenotmaterialin relationtotheoriginalapropriations. Inventoriesofmaterialandsupliesarevaluedatlowerofcostormarket. F.INVENTORIES -12-

16 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED G.COMPARATIVEDATE Comparativetotaldatafortheprioryearhavebenpresentedintheacompanying financialstatementsinordertoprovideanunderstandingofchangesinthetown'sfinancial positionandoperations.however,comparative(i.e.,presentationofprioryeartotalsby fundtype)datahavenotbenrepresentedineachofthestatementsincetheirinclusion wouldmakethestatementsundulycomplexandificultoread. H.TOTALCOLUMNSONCOMBINEDSTATEMENTS-OVERVIEW Totalcolumnsonthecombinedstatements-overviewarecaptioned"MemorandumOnly" toindicatethatheyarepresentedonlytofacilitatefinancialanalysis.datainthesecolumns donotpresentfinancialposition,resultsofoperations,orchangesinfinancialpositionin Conformitywithgeneralyaceptedacountingprinciples.Neitherisuchdatacomparable toaconsolidation,lnterfundeliminationshavenotbenmadeintheagregationofthis data. I.CASHANDCASHEQUIVALENTS Cashincludesamountsindemandeposits,interest-bearingdemandepositsandtime deposits.cashequivalentsincludeamountsintimedepositsandthoseinvestmentswith originalmaturitiesof90daysorles.understatelaw,themunicipalitymaydepositfundsin demanddeposits,interest-bearingdemandeposits,ortimedepositswithstatebanks organizedunderlouisianalaworanyotherstateoftheunitedstates,orunderthelawsof theunitedstates. J.FUNDEQUITY ContributedCapital Contributedcapitalisrecordedinproprietaryfundsthathavereceivedcapitalgrantsor contributionsfromdevelopers,customers,orotherfundswhensuchresourcesarerestricted fortheacquisitionorconstructionofcapitalasets.contributedcapitalisamortizedbased onthedepreciationrecognizedonthatportionoftheasetsacquiredorconstructedfrom suchresources. ENCUMBRANCES TheTownofClaytondoesnotusencumbranceacounting. -13-

17 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE2-CASHANDCASHEOUIVALENTS Understatelaw,theTownmaydepositfundsindemandeposits,interestbearingdemand deposits,moneymarketacounts,ortimedepositswithstatebanksorganizedunder LouisianalawandnationalbankshavingprincipaloficesinLouisiana. Thefolowingisasumaryofcashandcashequivalents(bokbalances)atJune30,203: Demandeposits Timedeposits $104,042 Total $168,501 64,459 Understatelaw,thesedeposits,ortheresultingbankbalances,mustbesecuredbyfederal valueofthepledgedsecuritiesplusthefederaldepositinsurancemustataltimesequalthe depositinsuranceorthepledgeofsecuritiesownedbythefiscalagentbank.themarket amountondepositwiththefiscalagent.thesesecuritiesareheldinthenameofthe parties.cashandcashequivalents(bankbalances)atjune30,203of$168,501were securedbyfederaldepositinsurance. pledgingfiscalagentbankinaholdingorcustodialbankthatismutualyaceptabletoboth ThefolowingisasumaryofthereceivablesatJune30,203: General Garbagetaxes Revitalizationloan $4,246 Fund Utilityfes $15,536 Lesalowanceforbadebts Totalacountsreceivalbe NOTE4-RESTRICTEDASETS-PROPRIETARYFUNDTYPE Certainasetswererestrictedfordebtserviceandcustomerdeposits.Theseasetsconsisted ofthefolowing: Sinking Customerdeposits $12,519 Bondreservefund 19,635 Bondcontingencyfund 19,86 12,

18 ASOFANDFORTHEYEARENDEDJUNE30,203 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA NOTE5-CHANGESIN GR Asumaryofchangesingeneralfixedasetsfolows: Land AditionsDeletions Equipment $ $ Total NOTE6-PROPRIETARYFUNDPROPERTY.PLANTANDEOUIPMENT Asumaryoftheproprietaryfund'splantandequipmentatJune30,203folows: Waterandgasystem Sewersystem $837,027 Buildings Trucks Equipment 1,985,758 10,279 Lesacumulatedepreciation Total 64r~95 1,329 Net (1,02,273) 2,908,78 s.1,8g6,515 NOTE7- ~NG- ThefolowingisasumaryofbondtransactionsoftheTownofClaytonfortheyearended June30,203: ObligationRevenue General BondsPayable Note BondspayableatJune30,202$16,0$47,0$6,029$69,029 Total Aditions

19 TOWNOFCLAYTON,LOUISIANA NOTESTOTHEFINANCIALSTATEMENTS ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE7-CHANGESINLONG-TERMDEBT-CONTINUED Generalobligationbonds: $30,01970sewerdistrictserialbonds dueinanualinstalmentsof$1,0 throughjanuary1,2010;interestat5% $30,01970sewerdistrictserialbonds dueinanualinstalmentsof$1,0 throughjanuary1,2010;interest5% Revenuebonds: $140,01970sewerserialbondsduein anualinstalmentsof$5,0to$7,0 throughjanuary1,2010;interestat5% 7,0 7,0 $14,0 Notespayable: $9,0notespayabledueinmonthly instalmentsof$40throughseptember 203;interestat8% $769 TheanualrequirementstoamortizealdebtoutstandingasofJune30,203including interestpaymentsareasfolows: Year Ended June Thereafter General Obligation Bonds $2,70 2,60 2,50 2,40 2,30 4,30 16,80 Revenue Bonds $7,10 7,850 7,50 7,250 6,950 14,0 50,70 Lesamounts representinginterest(2,80)(8,70) TOTAL $14,0$42,0-16- Notes Payable $781Total $10,581 10,450 10,050 9,650 9,250 18,30 68,281 (1,512) $56,769

20 ASOFANDFORTHEYEARENDEDJUNE30,203 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA NOTE8- BOND ONS TheTown'sproprietaryfundbondsaregovernedbybondindenture,thetermsofwhichare sumarizedasfolows: 1.TheTownshalmaintainareservefundwithaminimumbalanceof$3,70. 2.TheTownshalmaintainadepreciationandcontingencyfundintowhichmonthly 3.TheTownshalmaintainanamortizationfundofsuficientbalancestopaybonds depositsof$30wilbemade.anualdepositsof$360wilberequiredforeachof thenextfiveyears. andinterestastheymature. AsofJune30,203theTownwasincompliancewitheachoftheserestrictions. NOTE9- TheTownofClaytonrecordsreservestoindicatethataportionofthefundequityislegaly EOUITY segregatedforaspecificfutureuse.thefolowingdetailsthedescriptionandamountofal reservesusedbythetown. June30,203 Balanceat a.debtservicefund Reservedfordebtservice b.enterprisefund Reservefordebtservice NOTE10-DEFICITRET~ Thenterprisefunddeficitinretainedearningsof$314,029istheresultofrevenues NOTE1-ADVALOREMTAXES inadequatetocoverexpensesincludingdepreciationforseveralyears. AdvaloremtaxesatachasanenforceablelienonpropertyasofJanuary1,ofeachyear. TaxesareleviedbytheTowninSeptemberorOctoberandareactualybiledtothe taxpayersinnovember.biledtaxesbecomedelinquentonjanuary1,ofthefolowingyear. Revenuesfromadvaloremtaxesarebudgetedintheyearbiled. -17-

21 ASOFANDFORTHEYEARENDEDJUNE30,203 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA NOTE1-ADVALOREMTAXES- TheTownbilsandcolectsitsownpropertytaxesusingtheasesedvaluesdeterminedby thetaxasesorofconeordiaparish. valuationstotaling$1,187,090andwerededicatedtogeneralcorporatepurposes. FortheyearendedJune30,203taxesof3.8milswereleviedonpropertywithasesed NOTE12-RETIREMENTCOMITMENTS Totaladvaloremtaxesleviedwere$4,868duringtheyearendedJune30,203. TheTownofClaytonemployesarealmembersofthesocialsecuritysystemandare membersofnotheretirementplan.thexpenseofthesocialsecurityisreflectedin NOTE13- payroltaxesinthevarioustatementsofincome. IND TheTown'spolicyforvacationandsickleavealowstendayspaidforvacationandtendays paidforsickleave.anyunusedaysathendofthecalendaryearwilbelost.atjune30, 203,nofultimemployeshadsickdaysremainingunusedandalvacationdayshadben NOTE14- used. RISEFUND Enterprisefundsaleswereasfolows: Gasales Watersales $153,846 Seweragefesandother 65,085 Total $278,217 59,286 EnterprisefundworkingcapitalisasfolowsatJune30,203: Curentasets Curentliabilities Networkingcapital -18-

22 NOTESTOTHEFINANCIALSTATEMENTS TOWNOFCLAYTON,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,203 NOTE15-SUMARYOFGRANTS FundingfromthefolowingFederalgrantswasreceiveduringtheyearendedJune30, 203: CFDA FederalGrants: Number HUD-LCDBGWaterImprovements

23 SECTIONH-SUPLEMENTALINFORMATIONSCHEDULES -20-

24 GENERALFUND Toacountforesourcestraditionalyasociatedwithgovernmentsthatare notrequiredtobeacountedforinanotherfund. 21-

25 Thefolowingnotesareanintegralpartofthesefinancialstatements. -2- TOWNOFCLAYTON,LOUISIANA GENERALFUND COMPARATIVEBALANCESHET JUNE30,203AND Cash Receivables: $21,374 Acounts 4,10 Totalasets 25,484 B Liabilities: Acountspayable Otheracruedexpenses Totalcurentliabilities 4, ,757 1,268 7,025 Fundbalance 18,459 Totaliabilitiesandfundbalance $25,484

26 TOWNOFCLAYTON,LOUISIANA ~F GENERALFUND WithComparativeActualAmountsfortheYearEndedJune30,202 YEARENDEDJUNE30,203 Variance- (Unfavorable) Favorable Revenues: Taxes Licensesandpermits Intergoveramental 64,80 4,70 Fines Miscelaneous Chargesforservices 1,60 $62,919$ 4,642 1,60 (1,81)$ Actual 202 (58) 64,869 4,53 2,496 Totalrevenues 13,030 84,40 23,190 4,791 (8,209) 2,890 7,52 97,142 12, Expenditures: Generalgovernment Policedepartment Stretdepartment Garbagecolection 27,063 27,508 10,0 Totalexpenditures 45,20 20,84 24,301 10,501 20,46 109, ,013 48,120 9, ,58 48,067 Excesofrevenues(under) Otherfinancingsources expenditures (24,863) (9,871) 14,92 (21,35) Operatingtransfersin Exces(deficiency)of revenuesoverexpenditures andotheruses ,129 18,92 4,524 Fundbalance,begining 18,459 18~459 13,935 Fundbalance,ending $18,596$37~8$18,92$18,459 Thefolowingnotesareanintegralpartofthesefinancialstatements.

27 TOWNOFCLAYTON,LOUISIANA GENERALFUND WithComparativeActualAmountsfortheYearEndedJune30,202 YEARENDEDJUNE30,203 Variance- (Unfavorable) Favorable Generalgovernment: Salaries-Fire Mayor'salary Aldermenfes $3,60 Payroltaxes 9,0 $2,20 3,60 Publicationexpense 2,525 9,0 $(2,20)$969 3,0 Otherexpense Insurance 5, , (525) 7,50 Oficexpense 4,70 5,27 Total 27,0 1,50 3,183 27,508 1,095 1, , ,012 4,092 (508) 24,301 1,064 Policedepartment: Salaries Automobilexpense 20,40 Supliesanduniforms 5,263 17,539 Total 27,063 1,40 2,28 2,861 20, ,035 13, ,70 20,46 2,728 Stretdepartment: Miscelaneous Stretfights Total ,501 (501) 9,32 9,724 Garbagecolection: Salaries 7,50 7,51 (51) 6,890

28 SewerDistrict#1-Toacumulatemoniesforpaymentsof1970$30,0 DEBTSERVICEFUNDS PublicImprovementSewerBonds TownTaxBonds-Toacumulatemoniesforpaymentof1970$30,0 PublicImprovementsBonds (SewerPublicImprovements) -25-

29 Thefolowingnotesareanintegralpartofthesefinancialstatements TOWNOFCLAYTON,LOUISIANA DEBTSERVICEFUNDS CESHET WithComparativeTotalsforJune30,202 YEARENDEDJUNE30,203 Sewer District#1Improvements203 Sewer Public Totals Cash $1,02$1,131$2,153$24,15 Reservedfordebtservice Availableforotherpurposes,4702 7,0 7,0 4,131 14,0 8~153 16,0 8,15 Totalfundbalances $1,02$1,131$2,153$24,15

30 TOWNOFCLAYTON,LOUISIANA DEBTSERVICEFUNDS WithComparativeTotalsforJune30,202 YEARENDEDJUNE30,203 District#1Improvements203 Sewer Sewer Public Totals Revenues: Interestincome $429$ Expenditures: Bondspaid Interestpaid 1,0 Totalexpenditures 40 1,0 40 2,0 80 2,0 90 (Deficiency)ofrevenues overexpenditures (971) (91)(1,962)(1,360) Fundbalance,begining 1,93 12,12 24,15 25~475 Fundbalance,ending $1,02$1,131$2,153$24,15 Thefolowingnotesareanintegralpartofthesefinancialstatements. -27-

31 CAPITALPROJECTSFUND -2B-

32 Cash Liabilities FundEquity TOWNOFCLAYTON,LOUISIANA CAPITALPROJECTSFUND BALANCESHET JUNE30,203 Grant LCDBG 5840 Improvements Water $ 5 $ 5

33 TOWNOFCLAYTON,LOUISIANA CAPITALPROJECTSFUND ATEMENTOF YEARENDEDJUNE30,203 Grant LCDBG 5840 l~eveunes: Improvements Water Grantincome Expenditures: Administrative Enginering 46,387 Totalexpenditures 10,075 56,462 Excesofrevenuesoverexpenditures Fundbalance,begining Fundbalance,ending $ 5 Thefolowingnotesarcanintergralpartofthesefinancialstatements. -30-

34 TOWNOFCLAYTON,LOUISIANA AND Revenues: Grantincome Expenditures: Enginering Administrative Totalexpenditures Excesofrevenuesover expenditures Fundbalance,begining Fundbalance,ending YEARENDEDJUNE30, terim Variance Budget Actual (Unfavorable) Favorable $56,462$56,462 $ 46,387 10,075 46,387 56~462 10,075 56, $ 5$ 5$ Thefolowingnotesareanintegralpartofthesefinancialstatements. -31-

35 GENERALONGTERMDEBT ACOUNTGROUP Toacountforunmaturedprincipalamountsongeneralongtermdebtexpectedtobe financedfromgovernmentaltypefunds.paymentofmaturingobligations, includinginterest,areacountedforinthedebtservicefunds.

36 TOWNOFCLAYTON,LOUISIANA WithComparativeTotalsforJune30,202 JUNE30,203 District#1Improvements Sewer Sewer Public 202 AMOUNTAVAILABLEAND TOPROVIDEFORTHE RETIREMENTOF Amountavailableindebtservice fundsfordebtretirement EBT ~ $ 7,0$14,0$16,0 Bondspayable

37 SUPLEMENTALINFORMATIONSCHEDULES FORTHEYEARENDEDJUNE30,203 TOWNOFCLAYTON,LOUISIANA COMPENSATIONPAIDALDERMEN ThescheduleofcompensationpaidtoaldermenispresentedincompliancewithHouseConcurent ResolutionNo.54ofthe1979SesionoftheLouisianaLegislature.Compensationofthealdermenis includedinthelegislativexpendituresofthegeneralfund.inacordancewithlouisianarevised Statute3:405(G),thealdermenhavepasedanordinancethatsetstheircompensationat$150.0per month. -34-

38 TOWNOFCLAYTON,LOUISIANA FORTHEYEARENDEDJUNE30,203 DULEOFCOMPENSATIONALDEI Mr.WiliamHal Ms.GaiDuncan Mr.WilieLeEvans Mrs.LindaDeLaughter Mrs.IreneJeferson Total -35-

39 SECTIONHI-COMPLIANCE/INTERNALCONTROL -36-

40 SWITZER,HOPKINS&MANGE CertifiedPublicAcountants DENISP~SWITZER,CPA FERIDAY,LOUISIANA7134 POSTOFICEBOX478 H.MYLESHOPKINS,CPA SUSAN1~MANGE,CPA 1840NORTHKE.WALACEBLVD. JOHNIV/.JONES,CYA1921 ~9~REPORTONCOMPL,~CEANDONINTERNALCONTROLO~l~c~srNATCh'~Z,MISlS~'~ FER1DAY,LOUISIANA7134 OVERFINANCIALREPORTINGBASEDONANAUDIT TELEPHONE(318) FAX(601) ~ ACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS OFINANCIALSTATEMENTSPERFORMEDIN HonorableWilbertWashington,Mayor TownofClayton,Louisiana andmembersoftheboardofaldermen WehaveauditedthegeneralpurposefinancialstatementsofTownofClayton,Louisianasofandforthe yearendedjune30,203,andhaveisuedoureporthereondatednovember14,203.wehave conductedourauditinacordancewithauditingstandardsgeneralyaceptedintheunitedstatesof AmericandthestandardsaplicabletofinancialauditscontainedinGovernmentAuditingStandards,isued bythecomptrolergeneraloftheunitedstates. AspartofobtainingreasonableasuranceaboutwhetherTownofClayton,Louisiana'sgeneralpurpose financialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewithcertain provisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcouldhaveadirectand materialefectonthedeterminationofinancialstatementamounts.however,providinganopinionon compliancewiththoseprovisionswasnotanobjectofouraudit,andacordingly,wedonotexpresuchan opinion.theresultsofourtestsdisclosednoinstancesofnoncompliancethatarerequiredtobereported undergovernmentauditingstandards. Inplaningandperformingouraudit,weconsideredtheTownofClayton,Louisiana'sinternalcontrolover financialreportinginordertodetermineourauditingproceduresforthepurposeofexpresingouropinion onthegeneralpurposefinancialstatementsandnotoprovideasuranceontheinternalcontrolover financialreporting.ourconsiderationoftheinternalcontroloverfinancialreportingwouldnotnecesarily disclosealmatersintheinternalcontroloverfinancialreportingthatmightbematerialweakneses. However,wenotedacertainmaterinvolvingtheinternalcontroloverfinancialreportinganditsoperation thatweconsidertobereportableconditions.reportableconditionsinvolvematerscomingtouratention relatingtosignificantdeficienciesinthedesignoroperationoftheinternalcontroloverfinancialreporting that,inourjudgement,couldadverselyafecthetownofclayton,louisiana'sabilitytorecord,proces, sumarizeandreportfinancialdataconsistentwiththeasertionsofmanagementinthegeneralpurpose financialstatements.thereportableconditionsisdescribedintheacompanyingscheduleofindingsand questionedcostsasitems203-1and

41 HonorableWilbertWashington,Mayor TownofClayton,Louisiana PageTwo Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrol componentsdoesnotreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbe materialinrelationtothegeneralpurposefinancialstatementsbeingauditedmayocurandnotbedetected withinatimelyperiodbyemployesinthenormalcourseofperformingtheirasignedfunctions.wenoted nomatersinvolvingtheinternalcontroloverfinancialreportinganditsoperationthatweconsiderbeing materialweakneses. ThisreportisintendedfortheinformationanduseofmanagementofthedistrictandtheLegislativeAuditor ofthestateoflouisiana.however,thisreportisamaterofpublicrecordanditsdistributionisnotlimited. UnderLouisianaRevisedStatute24:513,thisreportisdistributedbytheLegislativeAnditorasapublic document. Feriday,Louisiana November14,

42 SECTIONIV-SCHEDULEOFINDINGS -39-

43 ScheduleofFindingsandQuestionedCosts TOWNOFCLAYTON,LOUISIANA YearEndedJune30,203 1.Auditor'sRel3ort AnunqualifiedopinionhasbenisuedontheTownofClayton,Louisiana's financialstatementsasofandfortheyearendedjune30,203. RenortableConditions-FinancialRpnrtl TworeportableconditionsininternalcontroloverfinancialreportingwerereporteḍThis ReportableConditions-ComplianceWithLawsandRegulations conditionisreportedas203-1and Therewerenoreportableconditionsofnoncompliancewithlawsandregulationṣ ReportableConditions WerecomendthatheTownatemptoseparatetheacountingdutiesinordertostrengthinternal control. TheTownhasindicatedthatithasnoplanstohireaditionalemployestosegregatedutieṣThe Town'sresponseisincludedintheatachedleter. WenotedthatheTownexperienced19%gaslosesduringtheyear.Gasloseswereasfolows: Gaspurchased GasSales Unacounteforgas 12,323MCF 9,937MCF %GasLoses 2~386MCF 19% WerecomendthatheTowninvestigatethelosesandeterminethecauseofthisprobleṃThe problemaparentlyisleaks,brokenmetersortheftofgas. TheTown'sresponseisincludedintheatachedleter. -40-

44 SUMARYOFSCHEDULEOFPRIORAUDITFINDINGS TOWNOFCLAYTON,LOUISIANA JUNE30,202 ReportableConditions A 202-1EnternriseFun, WenotedtheTownhasabandonedthecut-ofpolicyforutilitycustomer'sdelinquentontheir paymentsforwater,gas,sewerandgarbagepick-up.wehaveidentifiedatleast59outofatotalof 340customerswhoshouldhavehadtheirutilitiesterminatedandtheirdepositsapliedtowardthe amountsdue.theproblemwilresultinanincreaseinbadebtsexperiencedifnotcorected. ThisisaviolationofArticleVI;Section14ofLouisianaconstitution,whichstatesthatpublicfunds canotbexpendedforprivatepurposes.inthiscasethepublicfundsarebeingexpendedtoprovide utilityservicesforprivatecitizensatnocost. Thisproblemhasbencorected TheTownofClaytonborowed$9,0duringtheyearfromalocalbankwithoutaprovalofthe StateBondComision.StateofLouisianalawrequiresthatdebtincuredwithamaturityof greaterthan90daysbeaprovedbythestatebondcomision. Thisproblemhasbencorected. WenotedtheTownofClaytondoesnothaveadequatesegregationofdutiesintheacounting department.twopeopleareresponsibleforcolections,postingacountsreceivablerecords,posting thecashreceiptsjournals,postingthecashdisbursementjournals,postingthegeneraledgers, preparingdeposits,openingbankstatementsandpreparingbankreconcilement'saswelaswriting andsigningchecks.inordertoincreaseinternalcontrols,thesefunctionshouldbeseparated. WerecomendtheTownatemptoseparatetheacountingdutiesinordertostrengthinternal control. ThisfindingstilapliesandinincludedinthecurentauditfortheyearendingJune30,203as finding

45 -42-

46 TOWNOFCLAYTON P.O.BOX27 CLAYTON,LA71326 November17,203 Mr.H.MylesHopkins,CPA Switzer,Hopkins,&Mange P.O.Box478 Feriday,LA7134 DearMr.Hopkins: InregardtotheauditreportfindingsfortheperiodendedJune30,203,Ihavethefolowing response: Wedonothavenoughacountingpersoneltosegregatedutiesothatwehaveperfectinternal Finding203-1SegregationofDuties control.wehavenoplanstohireaditionalpeopleinthetownhailandwewilprobablyhave thisproblem. Finding203-2GasLoses GasLosesarecompiledonamonthlybasisandwewilinvestigatethisproblemduringtheyear closely. Pleaseletmeknowifyouhaveanyquestions. Sincerely,A,~~-,~ WilbertWashington,Mayor TownofClayton,Louisiana -43