T O W N O F G R EEN SBU R G G reensburg,louisiana

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2 T O W N O F G R EEN SBU R G G reensburg,louisiana G eneralpurpose FinancialStatem ents A sof and forlhe tw o YearsEnded D ecem ber31,2000 W ith Supplem entalinformation Schedules TA BLE O F C O N TEN TS Statenlent Page IndependentA udilor'r eporton the FinancialSlatem enls G eneralpurpose FinancialStatem ents Com bined Balance Sheet-A llfund Types and A ccotm tg roups A G overnm entalfund-g eneralfund Statmnentof Revenues,Expenditures,and Changesin Fund Balance Statem entof Revenues,Expenditures,and Changesin Fund Balance-Budget(GAAP Basis)and Actual CapitalProjectFund Statem entof Revenues,Expenses,and C hangesin Retained EarningsY earended D ecem ber31, Proprietary Fund Type Com bined Statem entof Revenues,Expenditures,and Changesin R etained Earn ings-proprietary FundsforY ear Ended D ecem ber31,2000 Com bined Statem entof Revenues,Expendituresand Changesin Retained Earnings-Proprietary FundsforY earended D ecem ber31,1999 Com bined Statem entof Cash Flow s-proprietary Fund Type N otesto FinancialStatem ents

3 TO W N O F G R EEN SBU R G G reensburg,louisiana G eneralpurpose FinancialStatem ents A sof and forthe tw o Y earsended D ecem ber31,2000 W ith Supplem entalinform ation Schedules TABLE OF CONTENTS (Continued) Statem ent Page C om pliance and InternalC ontrolr eport IndependentA uditor'sreporton Com pliance and O n InternalControlO verfinancialreporting Based O q an A uditof FinancialStatem entsperform ed in A ccordance w ith G overnm enta uditin~ Standards A uditfindings Sum m ary Schedule of PriorA uditfindings C orrective A ction Plan forc urrcnty ea,"a uditfindings M anagenleull etter

4 A N TH O N Y B.BA G LIO,C PA A PR O FESSIO N A L A C C O U N TIN G C O R PO RA TIO N 2011Rue Sim one H am m ond,louisiana (504) or(504) IN D F,PEN D EN T AU DITO R 'S REPO RT The H onorable K enneth L.Caner,M ayor and M em bersof the Board of A lderm en Tow n of G reensburg,louisiana I have audited the accom panying general-purpose financial statem ents of the Tow n of Grecnsburg,Stateof Louisiana asof and forthe two (2)yearsended December31,2000, as listed in the table of contents. These general-purpose financial statem ents are the responsibility of the M ayorand the Board of A lderm en of the Tow n of G reeusburg,state of Louisiana. M y responsibility is to express an opinion on these general purpose financialstatem entsbased on m y audit. Iconducted m y auditin accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm ent A uditing Standards" issued by the Com ptroller G eneralof the United Stales, Those standards require thati plan and perform the audit to obtain reasonable assurance about w hether the financial statem ents are free of m aterial m isstatem ent. A n audit includes exam ining,on a test basis,evidence supporting the am ounts and disclosures in the generalpurpose financial statem ents. A n audit also includes assessing the accounting principles used and significant estim ates m ade by m anagem ent, as w ell as evaluating the overall general purpose financialstatem entpresentation. Ibelieve thatm y auditprovides a reasonable basisform y opinion. In m y opinion,the general-purpose financialstatem ents referred to above presentfairly, in allm aterialrespects,the financialposition of the Tow n of G reensburg,asof D ecem ber 31,2000,and the resultsof itsoperationsand the cash flow sof itsproprietary fire d type for the two (2) years then ended in conformity with generally accepted accounting principles. In accordance w ith G overnm entala uditing Standards,Ihave also issued m y reportdated June 11,2001on m y consideration of the Tow n of G reensburg,louisiana internalcontrol over financialreporting and nay testof its com pliance w ith certain provisions of Jaw s, regulations,contractsand grants. 03

5 The H onorable K enneth L.Carler, M ayor IndependentA uditorsreport June 11,2001 Page 2 M y audit w as m ade for the purpose of form ing an opinion on the gencral-purdose financialstatem entstaken asa w hole. The Supplem entalinform ation scheduleslisted in the table of contents are prcsented for purposes of additional analysis and arc not a required partof the generalpurpose financialstatem ents of the Town of Greensburg. Such information hasbeen subjected to lheauditing proceduresapplied in theauditofthe generalpurpose financialstatem entsand,in m y opinion, isfairly presented in allm atcrial respeclsin relation 1o the generalpurpose financialstalem enlstaken asa w hole. A nthony I:l.Baglio,CPA llam m ond,louisiana June 11,

6 TOW N OF GREENSBURG Greensburg,Louisiana A lfund "1ypesand AccountGroup STATILM IiNI A Combined BalanceShecl Decem ber31,2000 Governmental Fund General Fund Gasand W ater Ful~d Proprietary :ttlds CapitalOutlay Accounl :ut'~d Giol.tp Genera Sewer LCDBG Streets Fixed :ur~d Ful~d Assets Tolal M emorandum Onl~ ASSH S Cash Investnlents-Cl)'s Receivables(Netofalowanceforuncolleclibles) TaxesReceivable(Nelofalowanceforuncollccliblcs IntcreslReceivable D uefrom olbergovcrnllcnlalunits O lhcrreceivables I)uefionlolherfunds Prepaid expenses Restriced assets-i~asb O therassels I,and.Iluildings,andEquipnlenl(NcLwhere applicableofaccumulateddepreciation) 53,948 $ 214, , , , "10"1AI,ASSETS , , AIIII.I1leg AND FUNI)EQUITY,iabililies: A ccounlspayable I)u~Io oilierfunds Rcslricted Custom eri)cposits HondsPayablc-It.esticted Assels BondsPayable }ol/dsand NotesPayable IJnearned Revenue Fnnd Equity: Conlributcd Capital hlvestnlcntin GeneralFixed A ssels 268, Rclaincd Earnings Reserved Unreserved ,596) Fund Balances; Unreserved -undesignated "1olalFund Fquily 320, l 1, TOTAL I,IABIt.ITII(S AND FUND I'QUITV $ 328,838 $ 1,040,534 $ $ - $ 305,651 $ "The aeconlpanying notesare an inlegralpartofthisstalelnent." 5

7 TOW N O F GREENSBURG Grcensburg,Louisiana GovernmentalFund -GeneralFund STATEM EN3 1 Statem entofrevenues,expenditures and Changesin Fund Balances FortheYearsEnded December31,2000 and 1999 REVENUES GENERAL FUND Taxes Ad Valorem Salesarid Use AlcoholicBeverage Franchise Tobacco Licensesand perm its StaleFunds: Dcptoflransp Revenue Gam ing Revenue Com m ission on I,aw linforecm cnl Finesand Forfietures Rebates Royaldics InterestEarned O therreventles Stlpplem enlatpay 10"I'AI,I~,EVENUE8 EX I~I(NI)FIEIRI~S GeneralGovernment: G overnm entbody O rdinancesand proceedings I:in,~ncialand adm inistrative O IherGeneraladm inistrative PublicSal~ly: Police Fire Streets Ilealth and W elfare Parksand Recreation 25,489 2, ,005 95,882 26,300 47, ,113 1, ,803 24, ,535 1,050 t4g TOTAL ~XIq~NI31TURES 252, EXCI!SS REVENUE OVEF,EXPENDIFURES 0" IIER FINANCING SOURCES Operating "l'ranfersin Sale ofassets O pcrating TranfersO ut TOTAl,OTIIER FINANCING SOURCES 8, , EXCESS OF RIiVENUE AND O'IIIER SOURCES OVER EXPIgNDITURES AND USES FUNI)I ALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR 30, , ,265 "]'he accom panying notesarean integralpartofthisstatem enl"

8 TOW N O F G REENSBURG Grecnsburg,Louisiana GovemmenlalFund13rpe-OeaeralFtmd StatcnlenlofRevcmleS,Expenditures, andchangesilfund Balance-Budgel (GAAP Basis)andActual FortileYearsEnded December3I,2000 and 1999 RliVENtJliS BUDGE1 ACTUAL VARIANCE BUI)GET ACTUAL VARIANCE 1axes: Ad Valoleln Satesat~dUse AlcoholicBeverage Ffandlise lobacco Licensesand ]'~1105 Slalc Funds: Dept.of1lansp,ReVel1tic Oa lhl8 Revenue ConuuissiononI,aw lilfoteelnenl Finesand I:orfcilures Rebates Royalifcs lntcreslearned O~le~Revenues 5tl~tp]c IeltalPay 1O IAL REVI~NtJliS ixi'eni)iiurlis Gover 1C lrody Ordinacesat~d proccedinss I:inat~cia[aud Admini~ttatixc OilierGeltera[Ad linislralive 0u01i~ Safety: Police Fire Streets IleahhandW ellare I'arksandRecreation 25, ,153 4,000 25,489 2,186 52, ( ,606 1,500 69,706 4,000 24, ~ , ,882 26,300 47,693 30,810 11,900 11,192 1,500 96, , , ,050 2,480 8, "1AI.IXI'ENDIlURES EXCISS REV OVER I~XI)I!NDI]URES 011IER FINANCING SOURCYS Operating ltansfetsin Gain on SaleAssets Operating I falsfcrsout 8, , ,612 4,800 8, ) AI.0111ER FIN SOURCES EXCESS OF REV AND O1IIER SOURCESOVER EXP AND USES I:UNI)BAI,ANCESA1 BEG OF YEAR EUND BA1.ANCES A1 ~,NI)O :YEAR "1heacconlpanying notesarcan integralpartofthisslalement

9 TO W N O F G REENSBURG G recnsburg,louisiana STA TEM FN ] D CapitalProjectFund-LCDBG StreetsFund Statem er,tof Revenues,Expenditu res and Changesin Fund Balances Forthe YearsF.nded D ecem ber3 I, 2000 and 1999 RI'VEN UES Taxes: Ad Valorem Salesand Use Stale Funds: G rants InterestEarn ed O therrevenues TO TA l.rev EN UI';S ~3'S FUN I) ,280 7,280 X IW N I)ITU RES 7,280 TO TA l,15x PI+N D H 'U RISS 7,280 :~XC ESS RI'V EN U E O V I'R EX I~IgN I)H 'U Rt'S O 'H IER FIN A N CIN G SO U RCES Operating TranfersIn SaleofA ssets O perating Tran fcrso ut TO TA L O '1IIER FIN A N CIN G SO U RCFS I'XCI'SS O F RI'2V EN U E A N D O TIIER SO U RCI'S O V ER F,X PI'N D H 'URES A N D U SES :UN I)I~A I.AN CES A T BFG IN N IN G O F Y EA R FUN D 13A I,AN CI'S AT FN D OF YEAR - $ "Theacconlpanying notesare an integralpartofthisstatem enṭ "

10 TOW N O F G REENSBURG Greensburg,,ouislana STATI'M I'NT I~ Com bined Statem entofrevenues,expenditures,and Changesin Retained l(arnings-proprietary Funds FortltcYearEl~tded D ecember3,2000 OPI'RATING REVI'NUI'S Gas& W ater Fund Sewerage Fund Services GasSales W atersales ScwerService TO TA l,operatin G RI~VEN UES $ 813,049 48,646 $ 8 13, , , O PERATING I~X PEN SES Salaries l'ayroll"1fixesand Insurance GilsPurchases H ectricity M aterials[md Supplies ProfessionalFees Truck Expcls~ Repairsand M aintenance Cathodic Proleelion O ffice Expense lnstlralc~ D uesand Stlbscriptions DeprecialioJi A nalyticalser;'ices "IOTA L O I'FRA IIN G EXPI~N SES O I'I:,I~.ATING INCOM E (I,OSS) NONOI'I~RA IING REVENUI~S (EXIq!NSI~S) hrterestiflconle G riln S Gait1on Sale of A ssels hrtcrcste~pcnse "IOTAI,NONOPI!RATING REVENUES(EXPENSES) , , (695) (695 INCOM E (I,OSS)BI~FORE OPERATING TRANSFERS OPt'RA IING "IRANSFERS IN {OUT) Opcraling TransfersIn O perating TransfersO ut TOTAl,OPERATING TRANSFFRS IN (OU I (11.600) 3,000 (i5.000) 18,000 ( N ET IN COM E BI'G INN ING RH A IN I~I)EARN ING S EN 1)IN G RI"/I'AIN ED EARN IN GS "Theaccompanying notesarean inlegralpartofthisstatement."

11 TOW N O F G R EENSBUR G Orccnsburg,Louisiana STATEM ENT F Combincd SlatcnlcnlofF.evcnucs,Expenditures,and ChangesinRetained Eamings-l'roprielar),Funds Forthe YearEnded December O PEILATING I~.I~VF,N UES Gas& W ater Fund Sew e~lge Fund Services G assales W ~ltersales SewerService TOTAl.OPI~ItJVI'ING RI~N I:,NUI~S S 644,008 $ 46, , $ 644, , OPIilL~TING 1':X PEN SF.S S~/arlcs Payro ltaxesand Insurance GasJ~urc]mses!leclrJcJI), M alerialsand Stlpplies ProfessionalFees Truck Expense Repairsand M ahlemmce CalhodlcProlccllon OfficeExpense [lsurubce I)uesand Subscripfons I)~prccialion AIlalylicalServices TO'I'AI.O PI'I~A.TING FXI'I~N SES OH!RATING INCOM E (LOSS) NONOPERATING IU~VENUES (EXH!NSES) lnlerem lnconle Galn onsaleofa ssets InterestExpense TOTAl.NONOI'I~.ILATING REVI~NUIiS (EXPI~NSI'~S), ) ) INCOM II(I.OSS)BEFORE OPIII~A TING TRANSFERS OH 'RATING TRANSFH (S IN (OUT) O perating 'l'ranm~ersin Opetaling TransfersOut "]'O]~L OPI!I,LATJNG ~TLANSFERS IN (OUT) ) ( N ET INCOM E ~I!GINNING I~.ETA INED I!ARN INGS ENI)ING RI'TA INI~I) EARNIN(3S 0

12 TOW N O F G REENSBURG Grecnsburg,Louisiana $3A'IFM FNT G Combiaed StatementofCash Flows Proprietary Fund Type Forthe YearEnded Decem ber3 I.2000 Gas& W ater Fund ENTI~RPIC.ISE FUNDS Sewerage Fund l'ol~ CASIlFI.OW S FROM OPERATING ACTIVITIES Operating Incom e hdjustmemsto reconcilenetoperationblcemeto nclcash provided by operating activities: Dcpreciatio~ l)ccrcase(increase)ilaccouilisreceivable (I)ccrease)Increaseinaccountspayable Decrease(Increase) in prepaid c~peuses $ (14,820) $ (31,498) , (31.493) g NET CASIIPROVII)FI)BY OPF,RATING AC'IIVITII"S 56, ,904 ('ASIIFI,OW S FROM NONCAPlTAI,FINANCING AC'IIVI'IIFS Operaling TransfersIn Operaling TranslbrsOul hlcrease(i)ecrease)to olhelflnds NFT ('ASII(USFD)FOR NONCAPITAL FINANCING ACTIVFI1ES ('ASIII:I,OW S FROM CAI'ITAL AND REI,ATED FINANCING AC'IIVfH I!S: ProceedsfronlSale ofassets G ranls Ncl(increase)decreaseilrestriclcd asscls I'aym cnlsforcapitalacqulsilions Plincipalrepaym ents (500) (14.696) (L400) (I.094) (3,194) (1.900) ) (3.194) NH CASII(USEI))I:OR CAPITAL AND RFI.ATFD FINANCING ACTIVITIFS (15A96) (5.884 CASIIFI.OW FROM INVI"S'IING ACTIVITIES Inlercst[nconlc InterestFxpense NE'ICASIII'ROVII)ED (USED)FOR INVESTING ACTIVITIE'S NH 'INCREASF (DECRFASE)IN CAS11AND CASIII'QUIVALENTS CASIIAND CASIIEQUIVAIJ:NTS AT BEGINNING O1:YEAR CASIIAND CASIII-QUIVAI.ENTSAT END O1:YEAR

13 T O W N O F G R EE N SB U R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber IN TR O D U CTION The Tow n of G reensburg w as incorporated underthe provisionsof a specialcharter. The Tow n operates under a M ayor-board of A lderm en form of governm ent.the Tow n of G reensburg provides public utilities, fire protection, and various other services to its residents, q'he Tow n provides law enforcem entto the com m unity,and m aintains the streets and highw aysused by the residents. q'he Board of A lderm en of the tow n is com prised of five m em bers,and a M ayor. Each A lderm en, as w ell as the m ayor are elected for four year term s. The Board of A lderm en and the M ayorare com pensaled. The Tow n of G reensburg is located in St.tlelena Parish in the southeastern partof Louisiana. The population of the tow n is 668. The Tow n of G reensburg em ploys approxim ately 21em ployees,excluding the B oard of A lderm en and the M ayor. The Tow n provides naturalgas,water,and sew er services for approxim ately 307 residentialusers,and 99 com m ercialusers. It also m ainlains approxim ately 6.00 m iles of tow n slrcels,and 6.3 m iles of slale highw ays. L A SUM M A R Y O F SIG N IFIC A N T A C C O U N TIN G PO LIC IES BA SIS O F PR ESEN TA TIO N The accom panying financial statem ents of the Tow n of G reensburg have bccn prepared in conformity with generalaccepted accounting principals(gaap)asapplied 1o governmentalunfls.the governmentalaccounting StandardsBoard (GASB)islhc accepted standard selling body for establishing governm ental accounting and financial reporting principles. B. I~EPO R TIN G EN TIT Y A s the m unicipal governing authority, for reporting purposes, the Tow n of G reensburg isconsidered a separate financialreporting entity. The financialreporting em ily consistof (a) the primary government,(municipality),(b) organizations for which the prim ary governm entisfinancially accountable,and (c)otherorganizationsforwhich nature and significance of their relationship w ith the prim ary govermnenlare such thatexclusion w ould cause the reporting enlily'sfinancialstatem entsto be m isleadi~g or incom plete. G A SB Statem entn o.14 established criteria fordetermining w hich com ponentunits should 12

14 T O W N O F G R EEN SB U R G Greensburg,Louisiana O TES TO FIN AN CIA L STA TEM A s of and for the Tw o Years Ended D ecem ber 31, 2000 be considered partof the Tow n of G recnsburg for financialreporting pnrposes. The basic criterion for including a potential com ponent unit w ithin the reporting entity is financial accountability. The G A SB has setforth criteria to be considered in determ ining financial accountability. Thiscriteria includes: 1. Appointing avoting majority ofan organization'sgoverning body,and a. The ability of the m unicipality to im pose itsw illon thatorganization and/or b. The potentialforthe organization to provide specific financialbenefits to or im pose specific financialburdenson the m unicipality. 2. Organizationsforwhich thenm nicipality doesnotappointa voting majority but are fiscally dependenton the m unicipality. 3. O rganizations for w hich the reporting entity financial statem ents w ould be m isleading if data of the organization is not included because of the nature or significance of the relationship. A s required by generally accepted accounting principles, these financialstatem ents present thc Town of Greensburg 0he primary government).thetown hasalso determ ined thatlhcrc are no com ponents units thatshould be considered partof the Tow n for financialreporting purposes. FU N D A C C O U N T IN G A fund isa separate accounting entity w ith a self-balancing setof accounts. On lbe other hand, an account group is a financial reporting device designed to provide accountability forcertain assetsand liabilitiesthatare notrecorded in tbe fundsbecause tbey do notdirectly affectnetexpendable available financialresources.

15 T O W N O F G R EE N SB U R G G reensburg,louisiana N O TES TO FIN A N CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber G overnm entalfunds G overm nentalfunds are used to accountforallorm ostof the m unicipality'sgeneral activities,including the collection and disbursem entof specific or legally restricted m onies,the acquisition or construction of generalfixcd assets,and tile servicing of generallong-term debt. G ovennnentalfundsinclude: G eneralfund-the generaloperating fund of tile m unicipality and accountsfor all financialresources except those required to be accounted for il anothcr fund. 2. CapitalProjectFund-accountforfinancialresourcesreceived and used forthe acquisition,construction,or im provem entof capitalfacilities notreported in the othergovennnentalfunds. Proprietary Funds Proprietary funds are used to account for activities sim ilar to those found il the private sector,w here the determ ination of netincom e isnecessary orusefulto sound financial adm inistration. Proprietary funds differ from governm ental funds in that lhcir focus is on incom e m easurem ent, w hich, together w ith the m aintenance of equity,isan im portantfinancialindicator. Proprietary fim dsinclude: Enterprise fimds- accountsforoperations(a)where tileintentof the governing body isthatthccosts(expenses,including depreciation)ofproviding goodsorservicesto the generalpublic on a continuing basis be financed orrecovered prim arily through usercharges;or(b)where the governing body hasdecided theperiodic determ ination of revenues earned,expenses incurred,and/or net incom e is appropriate for capital m aintenance,public policy,m anagem entcontrol,accountability,orotherpurposes. D. BA SIS O F A C C O U N TIN G The accounting and financialreporting treatm entapplied to a fund is determ ined by its m easurem entfocus. A llgovern m entalfim ds are accounted forusing a currentfinancial resourcesm easurem entfocus. W ith thism easurem entfocus,only currentassetsand current liabilities are generally included on the balance sheet. O perating statem ents of these funds present increases and decreases in net current assets. "/'he m odified accrual basis of accounting is used by all governm ent funds w here revenues are recognized when they becom e m easurable and available as net current assets. The governm ental fund uses the 4

16 T O W N O F G R EE N SB U R G Greensburg,Louisiana N O TES 3"0 FIN A N CIA l,sta TEM EN TS A sof and forthe Tw o YearsEnded D ecem ber follow ing practicesin recording revenuesand expenditures ]/,evenucs Revenues are recognized, under the m odified accrual basis of accounting, w hen susceptibleto accrual(i.e.,when they are"measurableand available")."m easurable" m eansthe am ountof transaction can be determ ined and "available"m eanscollectible w ilhin the currentperiod or soon enough thereafter to pay liabilities of the current period. Property taxesand inlereslare susceptible to accrual. Salestaxes collected and held by 1he Sherif CentralCollection A gency atyearend on behalf of 1he govcrnm enlare also rccognized as revenue. O ther receipts and taxes becom e m easurable and available w hen cash isreceived by the govern m entand are recognized asrevenue at thattim e. Enlillem enls and shared revenues are recorded atthe tim e of receiptorearlierif the susceptible Io accrualcriteria are m et. Expenditure-driven grants are recognized as revenue w hen the qualifying expenditures have been incurred and all other grant requirem entshave been m et. E xpenditures Expendituresare generally recognized underthe m odified accrnalbasisof accounting w hen the related fund liability is incurred. A n exception to this rule is that the principaland intereston long-lem ldebtis recognized w hen due. Purchase of various operating suppliesare regarded asexpendituresatthe lim e purchased. 0 1her Financing Sources(Uses) Transfersbetween fundsthatarenotexpected 1o berepaid (and any otherfinancing source/useareaccounted forasotherfinancing sources(uses). Proprietary Funds A llproprietary fundsare accounted foron a flow of econom ic resourcesm easurem enl focus and a determination of net incom e and capital m aintenance. W ilh this m easurem entfocus,allassetsand allliabilitiesassociated w ith the operation of lhese fim ds are included on the balance sheet. The proprietary funds are accounted for using the accrualbasis of accounting.revenues are recognized when earned,and theirexpensesare recognized atthe tim e liabilitiesare incurred.

17 TO W N O F G R EEN SBU R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber31,2000 E. BU D G ETS The prim ary govern m entm unicipality usesthe follow ing budgetpractices 1. The M ayor prepares a proposed budget and subm its sam e to the Board of A lderm en priorto the beginning of each fiscalyear. 2. A sum m ary of the proposed budget is published. A t the sam e tim e,a public hearing iscalled. 3. A public hearing isheld on the proposed budgetatleastten days afterpublication of tile callforthe hearing. 4. A fterthe holding of the public hearing and com pletion of allaction necessary to finalize and inaplem ent the budget,the budget is adopted by m otion prior to the com m encem entof the fiscalyearforw hich the budgetisbeing adopted. 5. B udgetary am endm ents involving the transfer of fim ds from one departm ent, program orfunction to anotherorinvolving increases in expendituresresulting from revenues exceeding am ounts estim ated require the approval of the Board of A lderm en. 6. A llbudgetary appropriationslapse atthe end of each fiscalyear 7. Budget for the G eneral Fund is adopted on a basis consistent w ith generally accepted accounting principles(gaap).budgeted amountsasoriginaladopted,arc am ended from tim e to tim e,by the Board of A ldermen. EN C U M BRA N C ES - Thc Tow n doesnotuse encum brance accounting G. CASItAND CASItEQ UIVALENTS Cash includes am ounts in dem and deposits,interest-bearing dem and deposits,and tim e deposits. Cash equivalentsinclude mnountin tim e depositsand those investm entsw ith originalm aturitiesof 90 daysorless.u nderstate law,the m unicipality m ay depositfim dsin dem and deposits, interest-bearing dem and deposits, or tim e deposits w ith state banks organized underlouisiana law orany otherstate of the U nited States,orunderthe law s of the U nited States. 6

18 T O W N O F G R EEN SBU R G G reensburg,louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber t. IN V E STM EN TS hwestments are limited by Louisiana Revised Statute (R.S.) 33:2955 and the m unicipality's investm entpolicy. If the originalm aturities of investm ents exceed 90 days, they arc classified asinvestm ent;how ever,if the originalm aturitiesare 90 daysorless,they are classified ascash equivalents. Investm entsare state atcost. SItO R T-TER M IN TER FUN D R EC EIV A BLES/PA Y A BL ES D uring the course of operations, num erous transactions occur betw een individual funds forgoodsprovided orservicesrendered. These receivable and payables are classified as due from other fim ds or due to other funds on tile balance sheet. Slaort-tcrm intcrfund loansare classified asinterfund receivables/payables. R EC EIV A BLES U ncollectible am ountsdue forad valoreln taxesand custom ers'utility receivablesarc recognized as bad debts through the establishm ent of an allow ance account at the tim e inform ation becom es available w hich w ould indicate the uncollectability of the particular receivable. K. I'I/EPA II)IT EM S Prepaid item s are expenditurcs and expenses w hich are paid in tile currentyear,tiro l covera period som etim e in the future. These item s include vehicle insurance in w hich thc prenfium sare due in advance. 1,. R ESTR 1C TEI)A SSETS P,estricted assetsapplicable to the G asand W aterfund consisted of cash reserved for custom erdepositof $20,777. Restricted assets applicable to the Sew er Fund atd ecem ber 31,2000,consisted of cash reserved forbond requirem entsof $22,331. M. FIX ED ASSETS Fixed assetsof governm entfundsare recorded asexpendituresatthe tim e purchased 17

19 TO W N O F G R EEN SBUR ( Greensburg,Louisiana N O TES TO FIN A N CIA l,sta TEM EN TS A sof and forthe Tw o Y earsended D ecem ber orconstructed,and the related assetsare capitalized (reported)in the generalfixed assets accountgroup. Public dom ain or infiastructures are notcapitalized. N o depreciation has been provided on general fixed assets. A ll fixed assets are valued at historical cost or estim ated costif historicalcostisnotavailable. Fixed assetsused in the proprietary fund operationsare included on the balance sheet of tile fundsnetof tle accum ulated depreciation. D epreciation of allexhaustible fixed assets used by proprietary fund operation ischarged asan expense againstoperations. D epreciation is com puted using the straight-line m ethod overthe follow ing usefullives: G as and W ater U tility - G aslinesand m eters W aterw ells W atertanks W aterlinesand m eters A utos and trucks O therequipm ent 20 years 40 years 40 years 40 years 3 years 5 years Sew erage Utility _ - Pum p stations Lines 30 years 30 years N. C O M PEN SAT ED A BSEN C ES The Tow n hasthe follow ing policy relating to annualand sick leave Fulllim e em ployeesearn annualleave based on the yearsof service asfollow s: Leave beginsaftersix m onthsoffiflltim e em ploym ent. A fulltim e em ployee earns8 hours perm onth up to 480 hours and then the accum ulation stops. The em ployee also uses this tim e forsick leave. Leave isnotpaid upon term ination, The cost of current annual leave privileges,com puted in accordance w ith G A SB Codification Section C60,is recognized as a currentyearexpenditure w hen annualleave is actually taken. O. LO N G -TER M O BLIG A TIO N S Long-term obligationsexpected to be financed from goverum entalflm dsare reported in the generallong-term obligation accountgroup. Expenditures for principaland interest paym ents for long-term obligations are recognized in the governm ental funds when due. Long-term obligatious expected to be financed from proprietary fund operations are 18

20 accounted forilthose funds FUND EQ UITY C ontributed C apital TO W N O F G R EEN SBU R G Greensburg,Louisiana N O TES TO FIN A N CIA I.STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber Contributed capitalisrecorded in proprietary fundsthathave received capitalgrants or contributions from developers, custom ers, or other funds w hen such resources are restricted for tile acquisition or construction of capilal assets. Contributed capital is not am ortized based o l tile depreciation recognized o l thatportion of tile assets acquired or conslrl]cled from such resom-ces. R eserves Reserves representthose portions of fund equity notappropriable forexpenditure or egally segregalcd fora specific future use. Q. INTERFUND TRANSACTIONS Quasi-externaltransactionsare accounted forasrevenues,expenditures,orexpenses. Transactions that constitute reim bursem ents to a fund for expenditures/expenses initially m ade from it tiro l are properly applicable to another fund are recorded as expenditures/expensesin tile reim bursing fund and asreductionsofcxpenditures/expenscs in the fund thatisreim bursed. R. SA LES TA X The Tow n assesses a 1% sales and use tax. The proceeds from tim sales and use tax are used asfollow s: A cquiring necessary lands and capitalim provem ents,necessary em ployees,additions to w ater, gas, and sew er system s, fire and police protection, encourage industrial developm ent,and forthe generalpurpose of properly operating and m aintaining the Tow n of G reensburg,for its inhabitants. The proceeds of this tax are accounted for in the G eneral Fund. S. TO TA L C O LU M N S O N C O M BIN ED STA TEM EN T S Totalcolum ns on the com bined statem ents -overview are captioned M em orandmn O nly to indicate thaithey are presented only 'to facilitate financialanalysis. D ata in these colum ns do notpresentfinancialposition,results of operations,orchanges in cash flow s in

21 TO W N O F G R EEN SBU R G Greensburg,Louisiana N O TES TO FIN A N CIA L STA TEM EN TS A s of and forthe Tw o Y ears Ended D ecem ber conform ity w ith generally accepted accounting principles. N eitheris such data com parable to a consolidation, lnterfund elim inationshave notbeen m ade in the aggregation of thisdata. 2. FUN D D EFIC IT ]'he follow ing individualfund hasa deficitin unreserved retained earningsasof D ecem ber31,2000. D eficit _ A ~ _.nount Sew er]:nnd $113,596 tlad the Tow n elected to add back the depreciation on assets acquired through grantfunds (contributed capital)directly to the Sewerage Fund contributed capitalaccount,its,'etained earn ingswould increaseby approxim ately $234,408,thuselim inating the deficit. LEV IED TA X ES A d valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes w crc levied by the Tow n in N ovem ber and billed to the taxpayers the 1stof Decem ber. Billed taxes becom e delinquenlon January 1 of the follow ing year. Revenues from ad valorcm taxesare budgeted in the yearbilled. The Tow n billsand collects itsow n property taxesusing the assessed valuesdeterm ined by the lax assessorof St.tIclena Parish. Taxeslevied A uthorized M illage Levied M illage 2000 $21, _ 1_999 $19,

22 T O W N O F G R E EN SB U R G G reensburg,louisiana N O TES TO FIN A N C IA L STA TEM EN TS A sof and forthe Tw o YearsEnded D ecem ber The follow ing are the principal"taxpayersforthe Tow n of G reensburg A ssessed Ṭaxpayer Type of Business V aluation % of Total A ssessed V aluation A ssessed Century Telephone Public Service D ixie Electric Public Service Bank of G recnsburg Bank TexasPetroleuna O ilexploration l % 5.81% 26.45% 6.56% $2, , , , CASilAND CASItEQ UIVALENTS The following is a sum mary of cash and cash equivalents (book balances) at D ecem ber31,2000: D em and D eposits lntercst-bearing dem and D eposits O ther Total G eneral Fund $53,948 $53,948 Proprietary Funds $135, $136,125 These depositsare stated atcost,w hich approxim atesm arkct. U nderstate law,these deposits(ortheresulting bank balances)mustbesecured by federaldepositinsuranceorthe pledge of securities ow ned by the fiscal agent bank. The m arket value of the pledged securities plus the federaldeposit insurance m ustatalltim es equalthe anaount on deposit w ith thc fiscalagentbank. These securiticsare held in the nmne of the pledging fiscalagent bank in a holding orcustodialbank thatism utually acceptable to the parties. AtDecember31,2000,the Town has$196,747 in deposits(collected bank balances). These depositsarc secured from risk by 100,000 of federaldepositinsurance mad $96,747 of pledged securitiesheld by the custodialbank in the nam e of the fiscalagentbank (GASB Category 3). Even though the pledged securities are considered uncollateralized (Category 3) under the provisions of G A SB Statem ent 3,Louisiana Revised Statute 39:1229 im poses a statutory requirem enton the custodialbank to advertise and sellthe pledged securitiesw ithin 10 daysof being notified by the Tow n thatthe fiscalagenthasfailed to pay deposited funds upon dem and.

23 T O W N O F G R EEN SBU R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN sof and forthe Tw o YearsEnded D ecem ber IN V ESTM EN T S The follow ing isa sum m ary of investnlentsatd ecem ber31, 2000 G eneral Fund Proprietary Funds Certificatesof Deposit $214,207 $416,107 These depositsare secured from risk by $100, 000 of federaldeposit insurance and $530,314 of pledged securities held by the custodialbank in the nam e of the fiscalagent bank (GASB Category 3). 6. R EC EIV A ISLES Receivablesasof D ecem ber31,2000, consistsof the follow ing C lassof Receivables G eueral Fund Proprietary Funds Total Ta~es: Franchise Tax $ 8,150 A d VM orem Tax 5,929 SalesTax 8, 924 O ther: G am ing Revenue 24, 922 BeerTaxes 1, 590 O ilroyalites 1, 042 Less:alowanceforuncollectables (263) Sew er G asand W ater Less:allow ance foruncolleclables $50,294 2, ,472 _ (598) $160,069 $ 8,150 5,929 8,924 24,922 1,590 1,042 (263) 2, ,472 _ (598) $210,363

24 T O W N O F G R E E N SB U R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber31,2000 InterestReceivable asof D ecem ber31,2000,on Certificate of D epositsopened February 19,1997 m aturing February 19,2001and M arch 20,2001: G eneral Fund Proprietary Funds Total InterestReceivable 7. FIX ED A SSETS $10,049 $23,342 $33,391 The changesin generalfixed assetsfollow s l.and Balance D ecem ber $ 28,050 PI~,IM A P,Y G O V ERN M EN T Balance I)ecem ber31 A dditions D eductions 2000 $28, , , ,769 6, , , , A smnm ary of proprietary property,plant,and eqttipm entatd ecem ber31,2000,follow s G asand W ateru tility: Land Building G aslinesand m eters W aterw ells,tanks, lines,and m eters Equipm ent Sew erage U lility: Land Sew erlinesand liftstations Total $ 1,000 11, , ,015 77,855 3, ,128 1,509,762

25 T O W N O F G R EEN SB U R G Greensburg,Louisiana N O TES TO FIN AN CIAL STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber I.essaccum ulated depreciation N et ( ) $577,112 Depreciation expense forthe yearended Decem ber31,2000 is$33,781 A C C O U N TS,SA LA R IES,A N D O TH ER PA Y A BLES The follow ing isa sum m ary of payablesatd ecem ber31,2000 G eneral Fund Proprietary Funds G as & W ater Sew er Fund Fund W ithholdings A ccounts Sales Tax Payable O ther Total $ 2,552 6,042 $ 8,594 $ 2, ,697 5, $ 142,880 $ 2,310 $ 2,310 LEA SE In June 1989 the Tow n entered into a lease agreem entw ith the St.llelena Babe Ruth A ssociation w hereby the Tow n leasesa parcelof land to thcm fora period of 50 years fora stun of$ PR O PR IETA R Y FU N D C H A N G ES IN LO N G T ER M D EBT The follow ing isa sum m ary of debttransactions of the Tow n of G recnsburg forthe Sew erage Fund forthe yearended D ecem ber31,2000: N otespayable,january 1,2000 Principalretircd N otespayable,d ecem ber31,2000 $19,872 (3,192) $16,680 N otespayable atd ecem ber31,2000,are com prised of the follow ing Revenue prom issory note $75,000 Sew erage U tility prom issory note dated ; due in annual installmentsofprincipaland interesttotaling $3,887payableforty (40)yearsfrom thedateof the note;interestat3.75%. 24

26 T O W N O F G R E E N SB U R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber The annualrequirem entsto am ortize the Sew erage Fund debtoutstanding asof Decem ber31,2000,including interestpaym entsof $1,534 are asfollows: YearEnding D ecem ber Sew erage Revenue 3,887 3,887 3,887 3,887 2,666 $ 18, R ESTR IC TIO N S O N U SE-U TILITES R EV EN U E Under the term s of the debt agreem ent on the outstanding Sewerage Utility prom issory note dated D ecem ber 19,1967,a sufficientportion of incom e and revenuesto be derived from tile operation of the sew erage disposalsystem are pledged to paym entof the note togetherw ith the interestthereon,and said note isadditionally secured by a m ortgage on the lands,buildings,m achinery and equipm entcom prising such sew erage disposalsystem. Revenuesderived from the operation of the Sew erage U tility System are to be setaside into the follow ing specialfunds: A llincom e and revenucs from the operation of the System are to be sctaside into a specialfund designated "Sew erage Revenue Fund." Such incom e and revenues are pledged and shallbe applied to paym entof the note and interestthereon,and to provide an adequate depreciation fund. O ul of lhe Sew erage Revenue Fund there shall be set aside each m onth into a "Sew erage O peration and M aintenance Fund"am ounts sufficientto provide forthe paym ent of the reasonable and necessary expenses of operating and m aintaining the system. A lso from the rem aining netrevenues in the Sew erage Revenue Fund are to be set aside into a sinking fund know n as the "Sew erage R evenue N ote Fund" an am ount constituting notless than 1/12 of the am ountof principaland interestbecom ing due on the nextsucceeding paym entdate plusthe sum of $30 perm onth untila reserve of $2,000 has been accum ulated. At anytim e the "Reserve Fund" drops below $2,000, the monthly paym entsof $30 perm onth shallbe resum ed.the sinking fund shallbeused solely forthe 25

27 TO W N O F G R EEN SBU R G Greensburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber purpose of paying the interestand retirem entof the note Fundswillalso be setaside into a "Sewerage Depreciation Fund"atthe rate of $30 perm onth to be paid from the Sew erage Revenue Fund. M oneys in this fund shallbe used solely forthepurposeof paying lhecostof majorrepairsofdamagecaused by unforeseen catastrophe and for replacem ents m ade necessary by the depreciation of lhe system. A ny surplusin thisfund m ay be transferred into the Sewerage Revenue N ote Fund in addition to allotherpaym entsrequired lo be m ade into said Fund. A llcum ulative revenuesreceived and notrequired to be paid in such fiscalyearshall be used forthe purpose of prepaying the note orto m ake im provem entsorextensionsto the system. The Tow n hasvariouschecking and savings accounts thatcontain fundsof $22,330. These funds have been setaside for the purpose of m eeting the requirem ents of the debt agreem entforestablishing a Reserve Fund and a Sew erage D epreciation Fund. 12. R ET IR E M EN T SY ST E M Em ployeesof the Tow n of G reensburg are m em bersof the socialsecurity system. In addition to em ployee payroll deductions,tow n funds are rem itted to m atch em ployee contributions.a m ountcontributed to socialsecurity forthe tw o years ended D ecem ber31, 2000 isfollow s: A ggregate Contributions Tow n portions 2000 $31,513 $15, $29,540 $14, SFG M EN T IN FO R M A TIO N FO R EN TER I'R ISE FU N D S The Tow n m aintains tw o Enterprise Funds w hich provide gas, w ater, and sew cr services. Scgm ent information for the year ended D ecem ber 31, 2000, and 1999 is as follow s: 26

28 T O W N O F G R E E N SB U R G Greensborg,Louisiana TES TO FIN A N CIA L STA TEM s of and forthe Tw o Y ears Ended A sof and forlhe yearended D ecem ber31, 2000 Total G asand W ater Sewerage Enterprise Fund Fund Funds O perating revenues D epreciation expense Operating income(loss) Operating transfersout O perating transfersin N etincom e Property,plant,and equipm ent addilions Totalassets B ondsand otherlong term liabilities payable from operating revenues Totalequity $ 861,695 20,382 (17,369) 11,600 15,000 17,727 11,259 1,034, ,292 $ 26,415 13,399 ( 9,431) 15,000 3,000 (5,943) 1, ,411 $ 888,110 33,781 (26,800) 26,600 18,000 11,784 12,353 1,307,360 16,680 16, ,421 1,124,713 A s of and for the year ended D ecem ber 31, 1999 G asand W ater Fund Sew erage Ftm d Total Enterprise Funds O perating revenues D epreciation expense Operating incom e (loss) O perating transfers out O perating transfersin N etincom e Property,plant,and equipm ent additions Totalassets Bondsand otherlong term liabilities payable from operating revenues Totalequity $ 690,118 19,980 3,809 30, , , ,566 $ 26,114 13,872 ( 8,871) 21,800 13,188 20, ,552 19, ,364 $716,232 33,852 (5,062) 30,760 21,800 16,082 35,724 1,218,438 19,872 1,112,930 27

29 TO W N O F G R EEN SBUR G G reenshurg,louisiana N O TES TO FIN A N CIA L STA TEM EN TS A sof and forthe Tw o Y earsended D ecem ber C O M PEN SA TIO N TO M AY O R A N D BO A R D O F A LD ER M EN A m ountspaid to the M ayorand m em bers of the Board of A lderm en forcom pensation are asfollow s: K enneth Carter,M ayor Board of A lderm en G reg Carruth Jim m y M eadow s W ilburn B.Jones Cleve Tidw ell Jam esw ebb,jr. 3,000 3,000 3,000 3, $21, O N BE ItA L F PA YM EN TS M A D E B Y STA TE O F LO UISIA N A For the year ended D eccm ber 31, 2000, the Stale of Louisiana nm dc on behalf paym ents in the form of supplem ental pay to em ployees of the police departm ent. In accordance with GASB 24,theTown hasrecorded $3,000 forthe yearended 1)ecem ber31, 2000 of on behalf paym ents asrevenue and as expenditures in the G eneralfund. 17. C O N T R A C T S The Tow n has a contractw ith an energy com pany who fi)rnishes naturalgas forlhe G rcensburg com m unity. The utility com pany m anages all aspects for the purchase, transportation,and delivery of the gas. The energy com pany cannotpnrchase gas for the Tow n'saccountfora term longerthan one hundred eighty days w ithoutthe Tow n'sconsent. The presentagreem entw illexpire on Septem ber30,2001 unless term inated by eitherparty by atleastsixty daysw ritten notice priorto the com m encem entof the ensuing yearly period. The Tow n hasa contractw ith the D epartm entof Transportation w here the Tow n does certain m ow ing,litterand trash collectionson certain state highw ays.the contracthasbeen renew ed yearly and currently expiresjune 30,2001. The presentcontractisfor$5, FED ER A L G R A N T S The Tow n did notreceive any federalgrantsfor

30 TO W N O F G R EEN SB UR G Grecnsburg,Louisiana N O TES TO FIN AN CIA L STA TEM EN TS A sof and forlhe Two YearsEnded D ecem ber EC O N O M IC D EPEN D EN C Y The]'own receivesllemajority ofitsgasrevenuefrom onecompany. Ifforsome reason this Com pany ceased operations, this w ould have a m aterial effect o l the gas reven ues. 20. L ITIG A T IO N The Tow n isinvolved in a litigation involving the police departm ent. In an unrelated m atter,a citizen has m ade a dem and againstthe Tow n regarding invasion of privacy. The Tow n nor its attorn ey are unable to evaluate the potential loss or the likelihood of an unfavorable outcom e atthistim e on eitherof the m atters. 29

31

32 A N TH O N Y B.BA G LIO,C PA A PR O FE SSIO N A L A C C O U N TIN G C O R PO R A TIO N 2011Rue Sim one H am m ond,louisiana (504) or(504) IN D EPEN D EN T A U D ITO R 'S R EPO R T O N C O M PLIA N CE A N D O N IN TER N A L C O N TR O L O V ER FIN A N C IA L R EPO R TIN G BA SED O N A N A U D IT O F FIN A N C IA L STA T EM EN TS PER FO R M ED IN A C C O R D A N C E W ITH G O V ER N M EN T A U D ITIN G STA N DA R D S The H onorable K enneth L.Carter,M ayor and M em bers of tim B oard of A lderm en Tow n of G reensburg,louisiana 1have audited the generalpurpose financialstatem entsof the Tow n of G reensburg asof and forthe tw o yearsended D ecem ber31,2000,and have issued m y reportthereon daled June 1I,2001. I conducted m y audit in accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm ent A uditinp_,standards,issued by the Com ptrollerg eneralof the United States. Com pliance A s part of obtaining reasonable assurance about w hether lhe Tow n of Greensburg's generalpurpose financialstate lentsare free of m aterialm isstatem ent,iperform ed tests of its com pliance w ith certain provisions of law, regulations, contracts and grants, noncom pliance w ith w hich could have a directand m aterialeffecton the determ ination of financial statem ent am ounts. H ow ever,providing an opinion on com pliance w ith thoseprovisionswasnotan objectiveof my auditand,accordingly,ido notexpresssuch an opinion. The results of m y test disclosed no inslance of noncom pliance that is required to be reporled underg overn m enta uditin~ Standards. InternalControlO verfinancialreporting In planning and perform ing nay audit,i considered Tow n of G reensburg, Louisiana's internalcontroloverfinancialreporting in orderto determ ine m y auditing procedures for the purpose of expressing m y opinion on the generalpurpose financialstatem entsand not to provide assurance on the internalcontroloverfinancialreporting. M y consideration of tim internalcontroloverfinancialreporting would notnecessarily disclose allm attersin the internalcontroloverfinancialreporting thatm ightbe m aterialw eaknesses. 3O

33 The H onorable K enneth L.Carter,M ayor InternalControlO verfinancialreporting June 11,2001 Page 2 A m aterialw eakness is a condition in w hich the design oroperation of one orm ore of the internalcontrolcom ponents does not reduce lo a relatively low levelthe risk that m isstatem ents in am ounts that w onld be m aterial in relation to the general purpose financial statem ents being audited m ay occur and not to be detected w ithin a tim ely period by em ployeesin the norm alcourse of perform ing theirassigned fim ctions. Inoted no m atters involving the internalcontrolover financialreporting and its operation that1 consider to be m aterial w eaknesses. However, I noted other m atters involving the internalcontroloverfinancialreporting thalihave reported to m anagem entof Tow n of G reensburg,louisiana,in a separate leu.erdated June 11,2001. Thisreportisintended forthe inform ation of the Tow n of G rcensburg and the Louisiana Legislative A udif.or. H ow ever,thisreportisa m atterof publie record and itsdistribution isnotlim ited. Anthony B.Ba~ ho CPA tlam m ond,louisiana June 11,

34 TO W N O F G R E EN SBU R G G reensburg,louisiana Sum m ary Schedule of Prier A uditfindings ForThe Two Years Ended Decem ber RefNo FiscalYear Finding nitia ly O ccurred Description of Finding Planned Corrective Corrective Action Action/PartialCorrective Taken Action Taken Section I-Com pliance and InternalContro/ M aterialto the FinancialStatem ents Jun-96 nadequate Segregation No ofduties Lim ited size oftow n precludes adequate segration ofduties 97-2 Jun-97 Public Bid Law Yes Section II-M anagem entletter 1 Jun-98 No Fidelity Yes Bond Coverage 2 Jun-98 Check detailnotlisted on depositsrips Yes 3 4 Jun-98 No m onitoring system foroccupationallicense Jun-98 Possible neoptism Yes vioration Now 32

35 T O W N O F G R EEN SBU R G Greensburg,Louisiana C orrective A ction Plan For C urrenty ear A uditfindings ForThe Tw o Years Ended Decem ber RefNo Description of Finding Corrective Action Planned Contact Person Anticipated Com pletion Date Section I-InternalControland Com pliance M aterialto the FinancialStatem ents nternatcontro None Com pliance None Section II-M anagem entletter nadequate segregation None Kenneth L Carter N/A ofduties 2 No m onitoring system Yes W iliam C.Dixon Now foroccupation license forinsurance com panies 33

36 A N TH O N Y B.BA G LIO,C PA A PR O FESSIO N A L A C C O U N TIN G C O R I'O RA TIO N 2011Rue Sim one H am m ond,louisiana (504) or(504) M A NA G EM EN T LETTER The ltonorable Kenneth L,Carter,M ayor and The M em bersof The Board of A lderm en Tow n of G rcensburg,louisiana G entlem en In pla,m ing and perform ing nay audit of the financial statem ents of tile Tow n of G reensburg forthe tw o yearsended D ecem ber31,2000,iconsidered the Tow n'sinternal control structure to plan m y auditing procedures for the purpose of expressing m y opinion on the financialstatem ents and notto provide assurance on the internalcontrol structure. llow cver,during m y audit,inoted certain m atters,involving the internalcontrolstructure and other operational m atters that are presented for your consideration. 1 previously reported on the Tow n'sintern alcontrolstructure in m y reportdated June 11,2001. This letter does notaffectm y reportdated June 11,2001,on the financialstatem ents of the Tow n of G rccnsburg. I w ill review tile status of these com m cnts during m y next audit engagem ent. M y com m ents and recom m endations, all of w hich have been discussed w ith appropriate m em bers of m anagem ent,arc intended to im prove the internalcontrolstructure orresult in other operating efi ciencies. 1 w ill be please to discuss these com m ents in further detailatyourconvenience,to perform any additionalstudy of these m atters,orto assist you oryourcpa in im plem enting the recom m endations. M y com m entsare sum m arized asfollow s: FIN D IN G N O.1 INADEQ UATE SEG REGATION OF DUTIES The Tow n hasa sm allofi ce staf consisting of tw o em ployees. D ue to tile sm allstaff it is difficultto separate duties and or accounting function,therefore,a com plete internal controlsystem isnotpossible. P,ECO M M EN D A TION The m ayorneedsto consultw ith the Tow n'scpa to determ ine if any additionalcontrols can be established. 34