BRUCEHAREL&CO. CERTIFI]EDPUBLICACOUNTANTS AP~fesionalAcountingC<~po~tlon

Transcription

1 BRUCEHAREL&CO. CERTIFI]EDPUBLICACOUNTANTS AP~fesionalAcountingC<~po~tlon ManagementResponse: AlabovefindingsofdeficiencywerecorectedandclearedasdocumentedinaleterfromtheLouisianaOficeof ComunityDevelopmentdatedAugust5,196. ThisreportisintendedfortheinfomationofmanagemențtheLouisianaLegislativeAuditorsandtheFederalCognizant Agency.However,thisreportisamaterofpublicrecordanditsdistributionisnotlimiteḍ BruceHarelandCompany,CPAs AProfesionalAcountingCorporation Septcml:,er4,196 58

2 BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS WarenA.Wol,CPA AP~ofesio~alAc~unfingC~rporation MichaelP.EstaS,CPA CharlesP.Hebert,CPA DaleI.Jones,CPA 109WestMhmesotaPark VOICE:(5(14) Itemnd,LA70403 ParkPlaceSuite7 P.O.Box45-602FifthSt. KENTWODOFICE VOICE:(504)2%595 Kentwod,LA704 FAX:(504) FAX:(504) AmericanInstiluteofCPA.,~ Sac(elyofLouisianaCPAs MEMBERS INDEPENDENTAUDITOR'SREPORT VilageofAlbany,Louisiana TileHonorableMayor,TholnasStewart andmembersoftheboardofaldermen Wehaveauditedtheacompanyingeneralpro'posefinancialstatementsoftheVilageofAlbany,Louisiana,asof June30,196,madforlheyearlheuendedaslistedinfiretableofcontents.Thesegeneralpurposefinancialstatements purposefinancialstatementsbasedonouraudit. aretheresponsibilityofthevilage'smanagement.ouresponsibilityistoexpresanopiniononthesegeneral Weconductedourauditilacordmlcewithgeneralyaceptedauditingstandards,GovernmentalAuditingStandards, isuedbythecomptrolergeneralofileunitedstates,andtheprovisionsofoficeofmanagementandbudget CircularA-128,AuditsofStateandLocalGovernments.ThosestandardsandOMBCircularA-128requirethatwe planandperformlheauditobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatementsare freofmaterialmistatement.anauditincludesexamining,onalestbasis,evidencesuportingtheamountsand disclosuresinthegeneralpurposefinemcialstatements.anauditalsoincludesasesingtheacountingprinciplesused madsignificmltestimatesmadebyananagcment,aswelasevaluatingtheoveralgeneralpurposefinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforouropinion, InouroF,in(on,thegeneralpurposefinmlcialstatementsreferedtoabovepresentfairly,inalmaterialrespects,the financialpositionofthevilageofalbany,louisiana,asof.lune30,196,andtheresultsofitsoperationsandthecash flowsofitsproprietary,fundtypefortheyeartbcnendedinconfomaitywithgeneralyaceptedacountingprinciples. Ourauditwasmadefortimpurposeofaninganopiniononthegeneralpurposefiuancialstatementstakenasa whole.theindividualfundandacountgroupfinancialstatementsandscheduleslistedinthetableofcontentsare presentedforpurposesofaditionalanalysisandarenotarequiredpartofthegeneralpurposefinancialstatements ofthevilageofalbany,louisiana.suchinformationhasbensubjectedcotheauditingproceduresapliedinthe auditofthegeneralpurposefinancialstatementsand,inouropinion,isfairlypresentedinalmaterialrespectsin relationtothegeneralpurposefinancialstatementstakenasawhole. BruceHarel&Company,CPAs AProfe:;sionalAcountingCorporation September4,196

3 GeneralPurposeFinancialStatements VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 WithSuplementalInformationSchedules TABLEOFCONTENTS (Continued) IndependentAuditor'sReportonComplianceWithSpecificRequirements StatementSchedulePage AplicabletoNonmajorFederalFinancialAsistancePrograms IndependentAuditor'sReportonComplianceWiththeGeneralRequirements AplicabletoFederalFinancialAsistanceProgrmus

4 VilageofAlbany,Louisiana GeneralPurposeFinancialStatements AsofandfortheYearEndedJune30,196 WithSuplementaluformationSchedules TABLEOFCONTENTS (Continued) ScheduleofRevenuesandExpenses-BudgetandActual WaterDepartment ScheduleofRevenuesandExpenses-BudgetandActual SewerDepartment StatementofCashFlows SchcdaleofChangesinAsetsRestrictedforRECDRevcnucBond DebtService SchcdaleofWaterandSewerRates GENERALFIXEDASETACOUNTGROUP ScheduleofGeneralFixedAsets Sched~aleofChangesinGeneralFixedAsets SCItEDULEOFEDERALFINANCIALASISTANCE ScheduleofFederalFinancialAsistance SUI'PLEMENTALINFORMATION Scheduleoflusuranc-AlFundTypes OTltERAUDI'I'OR'SREPORTS IndependentAuditor'sReportonInternalControlStracture BasedonanAuditofGeneralPurposeFinancialStatements PerformedinAcordancewithGovernmentAuditing,Standards IndependentAuditor'sReportontheInternalControlStructureUsedin AdministeringFederalFinancialAsistancPrograms IndependentAuditor'sReportonComplianceBasedonanAuditof GeueralPurposeFinancialStatementsPerfomaedinAcordancewith GovernmentAuditingStandards IndependentAuditor'sReportonComplianceWithSpecificRequirements AplicabletoMajorFederalFinancialAsistancePrograms StatementSchedulePage

5 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 WithSuplementalInformationSchedules GeneralPurposeFinancialStatements TABLEOFCONTENTS StatementSchedulePage IndependentAudilor'sReport IndependentAuditor'sReportonScheduleofFederalFinancialAsistance GENERALPURPOSEFINANCIALSTATEMENTS CombinedBalanceShet AlFtmdTypesandAcountGroups StatementofRevenues,Expenditures,andChangesinFundBalance A GovernmcnlalFundTypes StatementofRevenues,Expenditures,andChangesinFundBalance B Budget(GAPBasis)andActual GovernmentalFundType-GeneralFund C Statement,ofRevenues,Expenses,andChangesinRetainedEanfings ProprietaryFundType-EnterpriseFund StatementofCashFlows D ProprietaryFundType-EnterpriseFund FINANCIALSTATEMENTSOFINDIVIDUALFUNDSANDACOUNTGROUPS NotestoFinancialStatements E GENERALFUND BalanceShet StatementofRevenues,Expenditures,andChangesinFundBalance Budget(GAPBasis)andActual 28 PROPRIETARYFUND-ENTERPRISEFUND Staten:tentofExpendituresComparedtoBudget(GAPBasis) 29 BalanceShet StatementofRevenues,Expenses,andChangesinRetainedEarnings BudgetandActual 3

6 BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS APrde$ionalA~untJngCorpom6on ManagementResponse: TheVil]tagewilobtainpropercolateralizationofbankdepositsandmonitortheamountsduringthe:,ear Thisreportisintendedfortheinformationofmanagement,theLouisianaLegislativeAuditors,andtheFederalCognizant Agency.Thisrestrictionisnotintendedtolimithedistributionofthisreport,whichisamaterofpublicrecord. BruceHarel&Company,CPAs AProfesionalAcountingCorporation Septenther4,196 54

7 SUPLEMENTALINFORMATION 46

8 VilageofAlbany,Louisiana StatementofRevenues,Expenses,andChangesinRetainedEarnings ProprietaryFundType-EnterpriseFund FortheYearEndedJune30,196 OperatingRevenues WaterSales SewerCharges ServiceConections Penalties Miscelaneous TotalOperatingRevenues OperatingExpenses Waterl)e]garln~ent Sewer1)epartment TotalOperatingExpenses NetOperatinghlcome NonoperatingRevenues(Expenses) Interest1i~leolne 1.osonDonationofEquipnaeut BondInterestExpense TotalNonoperatingRevenues(Expenses) NetIncome(Los) OperatingTransfersIn(Out) NetIncome(Los) UnreservedRetainedEarnings,BeginingofYear AmortizationofContributions IncreasesinReserves UurcservcdRetainedEarnings,EndofYear Theacompanyingnotesareanintegralpartofthesestatements 12 StatementD 201,686 60,896 15,640 7, , ,607 21,527 17,598(35) 79,176) 61,913) (40,386) 13,361 (27,O25) 260,280 5,270 (20,613) 267,912

9 BruceC.Hasrcl,CPA WarenA.Wol,CI'A MichaelP.Estay,CPA DaleI.Jones,CPA CharlesP.lebert,CPA BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS AProfesionalAcountingCorporation 109WestMinesotaPark ParkPlaceSuite7 Hamond,LA70403 VOICE:(504) FAX:(504) KENTWODOFICE P.O.Box45.602FifthSt. Keniwod,LA704 VOICE:(504) FAX:(504) MEMBERS AmericanInstituteofCPAs SocietyofLoulsiealaCPAs INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEWITHSPECIFICREQUIREMENTS APLICABLETONONMAJORFEDERALFINANCIALASISTANCEPROGRAMS TileHouorableMayor,TholnasStewart andmen(hersoftheboardofaldermen VilageofAlbany,Louisiana WchaveauditedtilegeneralpurposefinancialstatementsoftileVilageofAlbany,Louisiana,asofandfortileyear endedjune30,196,andhaveisuedoureporthereondatedseptember4,196. IncolmectionwithourauditofthegeneralpurposefinancialstatementsoftheVilageofAlbany,Louisiana,andwith ourconsiderationofthevilageofalbany,louisiaua'scontrolstructureusedtoadministerfederalfinancialasistance progranls,asrequiredbyoficeofmanagementandbudgetcirculara-128,auditsofstateandlocalgovernments, weselectedcertaintransactionsaplicabletocertainolmlajorfederalfinancialasistanceprogramsfortileyearended June30,196.AsrequiredbyOMBCircularA-128,wehaveperformedauditingprocedurestotestcompliancewith therequiremenlsgoverningtypesofsen,icesalowedorunalowed;andspecialtestsandprovisionsthatareaplicable tothosetransactious.ourproceduresweresubstantialylesinscopethananaudit,theobjectiveofwhichisthe cxpresiouofanopiuiononfilevilageofalbany,louisiana'scompliancewiththeserequirelnents.acordingly,we dolotexpresuchalopinio]l. Withrespectotheitemstested,theresultsofthoseproceduresdisclosednomaterialinstancesofnoucompliancewith therequirementslistedinfileprecedingparagraph.withrespectoitemsnotested,nothingcametouratentionthat causedustobelievethathevilageofalbany,louisiana,badnotcomplied,inalmaterialrespects,withthose requirements.however,tileresultsofourproceduresdisclosedimaterialinstancesofuoucompliancewiththose requirements,whicharedescribedasfolows: Finding LouisianaOficeofComunityDeveloplnentreportedtilefolowingmonitoringfindingsrelatedtotileFY194 LCDBGPrograminaleterdatedJune24,196: Finding : Finding : Finding : Recomendation TheVilagedidnotprovideverificationofpaymentofriugebenefitsbycontractors TileVilagediduotdisplayrequired"EqualOportunityEmploylneBt"posters. TheVilagedidnotprovidedocumentationofpublishedadvertisingnotices. TheVilageofAlbany,Louisianashouldprovidetilerequiredocumentationandisplaytilerequiredposters 57

10 FederalGrantor Pas-ThroughGrantor VilageofAlbany,Louisiana ScheduleofFederalFinancialAsistance YearEndedJune30,196 ProgramName UnitedStatesDepartmentofHousingand UrbanDevelopment ThroughLouisianaOficeofComunity Development ComuniltyDevelopmentBlockGrant ContractNumber UnitedSlatesDepartmentofTransportatio~x ThroughLouisianaltighwaySafetyComision SumertimeHolidaysSafeandSoberCampaign ProjectNumber FederalGrantor Pas-ThroughGrantor Prod;ramName UnitedStatesDepartmentofAgriculture ThroughPuralEconomicandComunity Development WaterandWasteDisposalSystemsfor RuralComunities LoanRepayment,Loan91-01 LoanRepayment,Loan91-02 LoanRepayment,Loan92-03 LoanRepayment,Loan92-05 Federal CFDA Number $ $ Federal CFDA Numbcr Theac.c.ompanyingnotesareanintegralpartofthesestatements 4 Program oraward Amount 3_046 3_ Program oraward Amount $$ $ 523,0$ 575,0 45, Cash/ Acrued Receipts/ Revenue Revenue BeginingRecoguized $ $ _129 1~ Loan Balances Principal _Begining_ Receipts 414,0$ 54, ,45 74~ $1,483.58$

11 fji~;-,.lm,. O0NOTSL'NDOUT FtLECOPY "41(Xeroxneoe~'~'Y Ue~et~omth~ copye~3~<)e F;ACKt.TILt') VILAGEOFALBANY,LOUISIANA ANUALFINANCIALREPORT 313NE30,196 Llnderprovisions.ofstatelaw,lh~S reportisapublicdocument.a copyofthereporthasbensubmittedtotheaudited,oreviewed, entityandothe~propria~epublic oficials."iherei:~ortisavailablefor publicinsl:~ectionatthebaton RougeoficeoftheLegislativeAuditorand,whereapropriate,athe oficeoftheparishclerkofcourt R~.leaseDate~I~C1B

12 SCHEDULEOFINSURANCE-ALFUNDTYPES VilageofAlbany,Louisiana June30,196 Schedule14 TitanInsuranceCompany InsuranceCompany PolicyNtm'Lber90MP0175C1 ComercialGeneralLiability Coverage Amount 50,007/17/95- Period TitanInsuranceCompany PolicyNumber15PO02934C1 ErorsorOmisions: 07/17/96 TitanInsuranceCompany PublicOficialsLiability 50,007/17/95-07/17/96 PolicyNumber20PL02105C1 LawEnforcmentOficersLiability 50,007/17/95- TitanInsuranceCompany BusinesAutoPolicy 07/17/96 PolicyNumber35BA0306C1 50,007/17/95- TitanInsuranceCompany PolicyNumber90MP0175C1 ComercialProperty 07/17/96 ]3uildings TitanInsuranceCompany ConamercialhfiandMarine PersonalProperty 10,007/17/96 07/17/95- PolicyNumber90MP0175C1 10,35807/17/95-40,0 RiskManagement,Inc. PolicyNumber01530 WorkersCompensation Statutory WesternSuretyCompany PolicyNumber FidelityBond Limits 5,0 07/17/96 01/01/96-01/01/97 10/15/95- WesternSuretyCompany PolicyNumber RightofWayBond 7,20 10/15/96 04/15/96- WesternSuretyCompany PolicyNumber FidelityBond 20,002/13/96-04/15/97 02/13/97 Theacompanyingnotesareanintegralpartofthesestatements. 47

13 BraceC.Haren,CPA WarenA.Wol,CPA MichaelP.Estay,CPA DaleH.lones,CPA CharlesP.lebert,CPA BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS AProfesionalAcountingCorporation 109WestMimlesolaPark ParkPlaceSuite7 tlanmaond,la70403 VO1CE:(504) FAX:(504) KENTWODOFICE P.O.Box45-602FifthSt. Kenlwod,LA704 VOICE:(504) FAX:(504) MEMBERS AmericanInstituteofCPAs SocietyofLouisianaCPAs INDEPENDENTAUDITOR'SREPORTONINTERNALCONTROLSTRUCI'UREBASEDONANAUDIT OFGENERALPURPOSEFINANCIALSTATEMENTSPERFORMEDINACORDANCEWITIt GOVERNMENTAUD1TINGSTANDARDS TheHonorableMayor,ThomasStewart andmembersoftileboardofaldermen VilageofAlbany,Louisiana WehaveauditedtilegeneralpurposefinancialstatementsoftileVilageofAlbany,Louisiana,asofandfortheyear endedjune30,196,andhaveisuedoureporthereondatedseptember4,196. Weconductedourauditinacordancewitbgcneralyaceptedauditingstandards,GovernmentAuditingStandardL isuedbytilecomptrolergeneraloftheunitedstates,andtileprovisionsofoficeofmanagementandbudget CircularA-128,AuditsofStateandLocalGovernments.ThosestandardsandOMBCircularA-128requirethatwe pilandperformfileauditobtainreasonableasuranceaboutwhethertilegeneralpurposefinancialstatementsare freofmaterialmistatement. ThemanagelnentoftheVilageofAlbany,Louisiana,isresponsibleforestablishingandmaintaininganinternal controlsmlcture.infulfilingthisresponsibility,estimatesandjudgmentsbymanagementarerequiredtoasesthe expectedbenefitsmadrelatedcostsofinternalcontrolstructurepoliciesandprocedures.theobjectivesofaninternal controlstructureare1oprovidemanagementwithreasonable,butnotabsolute,asurancethatasetsaresafeguarded againstlosfromunauthorizeduseordisposition,andthatransactionsarexecutedinacordancewithmanagement's authorizationandrecordedproperlytopenuitfilepreparationofgeneralpurposefinancialstatementsinacordance withgeneralyaceptedacountingprinciples.becauseofinherentlimitationsinanyinternalcontrolstructure,erors oriregularitiesmayneverthelesocurandnotbedetected.also,projectionofanyevaluationoftilestructureto futureperiodsisubjectotheriskthatproceduresmaybecomeinadequatebecauseofchangesinconditionsorthat thefeclivenesofthedesignandoperationofpoliciesandproceduresmaydeteriorate. Inpl,~mingemdperfoningourauditofthegeneralpurposefinancialstatementsoftheVilageofAlbany,Louisiana, forlhe),carendedjune30,196,weobtainedanunderstandingoftheinternalcontrolstructure.witbrespectothe interualcontrolstructure,weobtainedanunderstandingofthedesignofrelevantpoliciesandproceduresandwhether theyhavebenplacedinoperation,mrdweasesedcontrolriskinordertodetermineourauditingproceduresforthe purposeofexpresingouropiuiononthegeneralpurposefinancialstatementsandnotoprovide,anopiuiononthe interualcontrolstructure.acordingly,wedonotexpresuchanopinion. Wenotedcertainmatersinvolvingtheinternalcontrolstructureanditsoperationthatweconsidertobereportable conditionsunderstandardsestablishedbyfileamericaninstituteofcertifiedpublicacountants.reportable conditionsinvolvematerscomingtouratentionrelatingtosignificantdeficienciesinthedesignoroperationofthe internalcontrolstructurethat,inourjudgment,couldadverselyafecthevilage'sabilitytorecord,proces, sumarize,andreportfinancialdataconsistentwiththeasertionsofmanagementintilegeneralpurposefinancial statements. 48

14 BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS AprofesionalAcounlJngCotpomtlon internalcontrolstructureiscausedbythesmalnumberofpersonelthathandletheoperationsofthevilage. ItwasnotedthatheVilagehasalackofsegregationofdutiesinitsystemofinternalcontrols.Thisdeficiencyinthe Amaterialweak~esisareportableconditioninwltichthedesignoroperationofoneormoreoftheinternalcontrol structurelementsdoesnotreducetoarelativelylowleveltheriskthaterorsoriregularitiesinamountsthatwouldbe materialinrelationtothegeneralpurposefinancialstatementsbeb~gauditedmayocurandnotbedetectedwithinatimely periodbyemployesinthenormalcourseofpcrforntingtheirasignedfunctions. Ourcon:~iderationoftheinternalcontrolstructurewouldnotnecesarilydisclosealmatersintheinternalcontrol structurethatmightbereportableconditionsand,acordingly,wouldnotnecesarilydisclosealreportableconditions thatarealsoconsideredtobematerialweaknesesasdefinedabove.however,webelievethereportablecondition describedaboveisnotamaterialweaknes. Wealsonotedothermatersinvolvingtheinternalcontrolstructureanditsoperationthatwehavereportedtothe managernentofthevilageofalbany,louisiana,inaseparateleterdatedseptember4,196. Thisreportisintendedfortheinfornlationofmanagement,theLouisianaLegislativeAuditors,andtheFederalCognizant Agency.Thisrestrictionisnotintendedtolimithedistributionofthisreport,whichisamaterofpublicrecord. BruceHarcl&Company,CPAs AProfesionalAcountingCoqoration September4,196 49

15 VilageofAlbany,Louisiana StatementofRevenues,Expenditures,andChangesinFundBalance GovernmentalFundTypes FortheYearEndedJune30,196 Revenues Taxes LicensesandPermits Intergovemental FinesandForfeits GarbageColectionFes Miscelaneous TotalRevenues Expenditures GeneralandAdministrative PublicSafely SlrelsandSanilation CapitalOutlays TolalExpenditures ExcesofRevenues(Expenditures) OtherFinancingSources(Uses) Operatin~,TransferOut SaleofFixedAsets CapitalLeaseProceds TotalOtherFinancingSources(Uses) ExcesofRevenuesandOtherFinancingSources (ExpendituresandOtherFinancingUses) FundBalance,BeginingofYear FundBalance,EndofYear Theacompanyingnotesareanintegralpartofthesestatements. 10 General Fund 18,763 37,9 41,48 14,248 16, ,394 86,893 73,51 28, ,819 (4,425) 3,361) 840 9,20 6,679 2, ,785 Capital ProjectFund $24,039$ $ 218, , , ,129 StatementB Totals (MemoOnly) 18,763 37,9 259,617 14,248 16,640 6, ,893 73,51 28, , ,948 (4,425) 3,361) 840 9,20 6,679 2, ,785 $24,039

16 VilageofAlbany,Louisiana StatementofRevenues,Expenditures,andChangesinFundBalance Budget(GAPBasis)andActual GovernmentalFundType-GeneralFund FortheYearEndedJune30,196 Rcvenucs Taxes LicensesandPermits lotergovcrnmental FinesandForfeits GarbageColectionFes Miscelaneous TotalRevenues Expenditures GeneralandAdministrative l'ublicsafely StretsandSanitation CapitalOutlays TotalExpenditures ExcesofRevenues(Expenditures) OtherFinancingSources(Uses) OperatingTransferOut SaleofFixedAsets CapitalLeaseProceds TotalOtherFinancingSources(Uses) ExcesofRevenuesandOtherFinancingSources (ExpendituresandOtherFinancingUses) FndBalance,BeginingofYear FondBalance,EndofYear Theacompanyingnotesareanintegralpartofthesestatements. 19,250 38,0 41,20 15,10 16,60 6,40 236,50 83,231 73,106 30,70 50, ,098 (548) (13,361) 19,20 5,839 5,291 Actual 18,763 37,9 41,48 14,248 16,640 6, ,394 86,893 73,51 28,454 50, ,819 (4,425) 3, ,20 6,679 2, ,785 24,039 StatementC Variance Favorable (Unfavorable) (487)(1) 28 (852) 40 (14) (1,156) (3,62) (45) 2,246 (860) (2,721) (3,87) (3,037)

17 NotestoFinancialStatements VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 INTRODUCTION TheVilageofAlbanywasincorporatedOctober7,1953,undertheprovisionsoftheLawrasonAct(LSA-RS3:321).The VilageoperatesunderaMayor-BoardofAldermenformofgovernment, 1.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES A.REPORTINGENTITY AsthegoverningauthorityoftheVilage,foreportingpurposes,theVilageofAlbanyisthefinancialreportingentity. Thefinancialreportingentityconsistsof(a)theprimarygovermnent(VilageofAlbany),(b)organizationsforwhich theprimarygovernmentisfinancialyacountable,a~d(~)o~berorga~;,tati~t~sforwlricl~atureaudsignificanceoftheir relationshipwiththeprilnarygovermnentaresuchthatexclusionwouldcausethereportingentity'sfiuancialstatcmcnts tobemisleadingorincomplete. GovermnentAcountingStandardsBoard(GASB)StatementNo.14establishedcriteriafordeterminingwhich componcutunitshouldbeconsideredpartofthevilageofalbanyforfiuancialreportingpurposes.thebasicriterion forincludingapotentialcomponentunitwithinthereportingentityisfinancialacountability.thegasbhasetfortl criteriatobeconsideredindeterminingfinancialacountability.thesecriteriainclude: 1.Apointingavotingmajorityofanorganizations'sgoverningbody,and a.theabilityofthevilagetoimposeitswilonthatorganizationand/or b.thepotentialfortheorganizationtoprovidespecificfinancialbenefitstorimposespecificfinancialburdens 2.OrganizationsforwhichtileVilageofAlbanydoesnotapointavotingmajoritybutarefiscalydependentontile onthevilageofalbany. 3.Organizationsforwhichthereportingentityfinancialstatementswouldbemisleadingifdataoftheorganizationis VilageofAlbany. Basedonthepreviouscriteria,theVilageofAlbanyhasnocomponentunits. notincludedbecauseofthenatureorsignificanceoftherelationship, ConsideredinthedeterminationofcomponentunitsofthereportingentityweretheLivingstonParishPoliceJury, ItwasdeterminedthathesegovernmentalentitiesarenotcomponentunitsoftheVilageofAlbanyreportingentity Sherif,ClerkofCourt,Asesor,andScholBoardandtheDistrictAtorneyand.lodgesforthe21stJudicialdistrict. becausetheyareseparatelyelectedgoverningbodies,arelegalyseparate,andarefiscalyindependentofthevilage ofalbany.

18 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 NotestoFinancialStatements 5.RECEIVABLES Thereceivablesof$3,090atJune30,]96,areasfolows PublicUtilityFranchiseTax Genera AcountsReceivable Total Fund4,532 Enterprise Fund 6.INTERFUNDRECEIVABLE/I'AYABLE 4,532$ 28,58 Theinterfimdreceivable/payablefortheyearendedJune30,196isasfolows GeneralFund EnterpriseFund Receivable lnterfimd 58,478$ CapitalPJrojectsFtmd Total lntcrfimd Payable13,361 71,839$ 58, ,839 7.DUEFROMOTHERGOVERNMENTALUNITS Amountsduefromothergovernmentalunitsconsistedofthefolowing Genera StateofLouisiana: Fund BeverageTaxDistribution LivingstonParishScholBoard: TobacoTaxDistribution VideoPokerTaxDistribution 437 SalesTaxDistribution ,473 8,185 8.I)UEFROMOTIERS AtJune30,196,theVilagehadnoamountsduefromothers 9.RESTRICTEDASETS-ENTERPRISEFUND Restrictedasetswereaplicabletotilefolowing RECDBond&InterestRedemption RECDBondReserve RECDepreciation&Contingency 54,871 MeterDeposits 62,567 SewerConstruction 59,984 Total 39,563 25,

19 Acount General Fixed Asets 10!),894 $10!~ $ General Long-Term Debt StatementA Totals emorandum ,293 4,532 28,58 71,839 10,473 25,136 4,07,376 (749,938) 12,34 $4,217,613 $ $ 109, , $.12~34 17,543 2,26 34,368 21,148 71,839 1,42, ,21,914 (350,43) 109,894 62,567 59, , ,92 3,870 31,42 48,252 51, ,341 4,054,196 (649,239),4,25,787_ 24,686 6,975 27,728 20,043 48,252 1,463, ,209,914 (295,203) 15,834 47,74 54, , , $4,217, Theacompanyingnotesareanintegralpartofthesestatements

20 VilageofAlbany,Louisiana CombinedBalanceShet-AlFundTypesandAcountGroups June30,196 AsetsCashandCashEquivalents TaxesReceivable AcountsReceivable,Net DueFromOtherFunds DueFromOtherGovernments DueFromOthers RestrictedAsets: Cash FixedAsets AcunmlatedDepreciation AmountobeProvidedforLeasePaymeuts TotalAsets LiabilitiesandEquity Liabilities: AcountsPayable $ OtherAcruedExpenses PayableFromRestrictedAsets: Customers'Deposits RevenueBonds DuetoOtherFunds RevenueBondsPayable ObligationsUnderCapitalLeaseAgrements TotalLiabilities Equity:ContributedCapital AcumulatedAmortization InvestmentinGeneralFixedAsets RetainedEarnings: ReservedforRECDBondReserve P,eservedforRECDBondDepreciation&Contingency Unreserved FundBalance: Unreserved-Undesignated TotalRetainedEarnings&FundBalance TotalEquity TotalLiabilities&Equity $ Theacompanyingnotesaremlintegralpartoflesestatements Governmental FundTvpe General 190,828 4,532 58,478 10,473 Capital Pr~e~s 10$ Proprietary FundType Enterprise 346,365 28, ,136 3,967,482 (749,938) $ 10$3.830,964 5,431$ $ , ,368 21,148 58,378 1,42, ,21,914 (350,43) 62,567 59, , ,463 2~261~94 10$3,830,964

21 GENERALPURPOSEFINANCIALSTATEMENTS

22 Theacompanyi ngno tesareanin tegr alparto ft heses tat eme nts 42

23 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 NotestoFinancialStatements B.FUNDACOUNTING TheVilageusesfundsandacountgroupstoreportonitsfinancialpositionandtheresultsofitsoperations.Fund acountingisdesignedtodemonstratelegalcomplianceandtoaidfinancialmanagementbysegregatingtransactions relatingtocertaingovernmentfunctionsoractivities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Ontheotherhand,anacountgroupisa financialreportingdevicedesignedtoprovideacountabilityforcertainasetsandliabilitiesthatarenotrecordedinthe fundsbecausetheydonotdirectlyafectnetexpendableavailablefinancialresources. FundsoftheVilageareclasifiedintotwocategories:govermnentalandproprietary.Inturn,eachcategoryisdivided intoseparatefiredtypes.thefundclasificationsandescriptionofeachexistingfundtypefolow: GovcrumentalFunds Governmentalfundsareusedtoacountforalormostofthemunicipality'sgeneralactivities,includingthe coletionandisbursementofspecificorlegalyrestrictedmonies,theacquisitionorconstructionofgeneralfixed asets,andtheservicingofgeneralong-termdebt.governmentalfundsinclude: TheGeneralFundistheprincipaJfundoftheVilage'soficeandacountsfortheoperationsoftheVilage's ofice.thevilage'sprilnarysourceofrevenueisasalestaxauthorizedbylsa-rs3:271.othersources ofrevenueincludeadvaloremtaxes,franchisetaxes,licenses,permitsandfines.generaloperatingexpenditures arepaidfromthisfund. CapitalProjectsFund ProprietaryFunds Proprietaryfundsareusedtoacountforactivitiesimilartothosefoundintheprivatesector,wherethe determinationofnetincomeisnecesaryorusefultosoundfinancialadministration.proprietaryfndsdiferfrom gow:rnmenlalfundsinthatheirfocusisonincomemeasurement,which,togetherwiththemaintenanceofequity, isanimportantfinancialindicator.theproprietaryfundfolows: TheEnterpriseFundisusedtoacountforoperationsthatarefinancedandoperatedinamanersimilarto privatebusinesenterprise,wheretheintentofthegoverningbodyisthathecosts(expenses,including depreciation)ofprovidingodsorservicestothegeneralpubliconacontinuingbasisbefinancedorecovered primarilythroughusercharges;orwherethegoverningbodyhasdecidedtheperiodicdeterminationorevenues earned,expensesincured,and/ornetincomeisapropriateforcapitalmaintenance,publicpolicy,management control,acountability,orotherpurposes.

24 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 Notes1oFinancialStatements C.BASISOFACOUNTING Tileacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyitmeasurementfocus.Al goverlnentalfundsareacountedforusingacurentfinancialresourcesmeasurenlentfocus.withthismeasurement focus,onlycurentasetsandcurentliabilitiesaregeneralyincludedinthebalanceshet.operatingstatementsofthese fundspresentincreasesandecreasesinetcurentasets.themodifiedacrualbasisofacountingisusedbyal governmentalfunds.theguverma~enlalfundsusethefolowingpracticesinrecordingrevenuesaudexpenditures. Revenes Revenuesarerecognizedwhentheybecomemeasurableandavailableascurentasets Expendituresaregeneralyrecognizedunderfilemodifiedacrualbasisofacountingwhentherelatedfiredliability isincured,exceptlhatprincipalandinterestongeneralong-termdebtarerecogt~izedwhendue.purchasesof Alproprie[aryfut~dsaroacountedforonaflowofcouomicresourcesmeasurementfoctlsandadeterminatior~ofnet variousoperatingsupliesareregardedasexpendituresathetimepurchased. incomeandcapitalmaintenance.withthismeasurementfocus,alasetsandaliabilitiesasociatedwiththeoperation ofthesefimdsareincludedonthebalanceshet.theproprietaryfundsusetheacrualbasisofacounting.revenues arerecognizedwhenearned,andexpensesarerecogtlizedathetimeliabilitiesareincured. D.BUDGETPRACTICES TheVilageadoptsbudgetsforthegeneralfundandenterprisefiredeachyear E.CASHANDCASItEQUIVALENTS Cashincludesamountsindemandeposits,interest-bearingdemandeposits,andmoneymarketacounts.Cash equivalentsiucludeamountsintimedepositsandthoseiuvestmentswithorigiualmaturitiesof90daysorles.under statelaw,thevilagemaydepositfundsindemandeposits,interest-bearingdemandeposits,moneymarketacounts, orthoedepositswithstatebanksorganizedunderlouisianalawandnationalbankshavingtheirprincipaloficesin Louisiana. F.1NVI,;NTORIES Purchaseofvariousoperatingsupliesareregardedasexpendi~.uresathetimepurchased.Inventoriesofsuchsuplies (ifany)arenotrecordedasasetsathecloseofthefiscalyear. G.RESTRICTEDASETS Certainl~rocedsofthenterprisefundrevenuebonds,aswelascertainresourcesetasidefortheirepayment,are clasifiedasrestrictedasetsonthebalanceshetbecausetheiruseislimitedbyaplicablebondcovenants.casheld forcustomers'meterdepositsandsewerconstructionprojectshasbensetasideinseparatecashacountsandisalso clasifiedasrestrictedasetsonthebalanceshet.

25 BruceC.]Ja~cD,CPA BRUCEHAREL&CO. CERTIFIEDPUBL1CACOUNTANTS MichaelP.Eslay,CPA WarenA.Wol,CPA AProfesionalAcountingcorporation CharlesP.l~eber[,CFA DaleI.Jt)nes,CPA 109WestMinesotaPark P.O.Dox45-602FifthSt KEN'I~ODOFICE VOICE:(504) Hmnond,LA70403 ParkPlaoeSuite7 K~nlwod,LA704 VOICE:(504) FAX:(504) FAX:(504) AmericanInstituteofCPAs SocielyofLouisianaCPAs MEMBERS TheHonc,rableMayor,ThomasStewart INDEPENDENTAUDITOR'SREPORTONSCHEDULEOFEDERALFINANCIALASISTANCE Vilageo!['Albany,Louisiana andmembersoftheboardofaldermen WelaveauditedtilegeneralpurposefinancialstatementsoftheVilageofAlbany,Louisiana,asofandfortimyear endedjune30,196,andhaveisuedoureporthereondatedseptember4,196.thesegeneralpurposefinancial statemcnl~aretheresponsibilityofthevilageofalbany,louisiana's,management.ouresponsibilityistoexpres anopiniononthesegeneralpurposefiuancialstatementsbasedonouraudit. Weconductedourauditinacordancewidlgeneralyaceptedauditingstandards,GovernmentAuditingStandards, isuedbythecomptrolergeneraloftleunitedstates,andtheprovisionsofoficeofmanagementandt3udget CircularA-128,AuditsofStateandLocalGovernments.ThosestandardsandOMBCircularA-128requirethatwe plm~midperformtheauditobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatementsare freofmaterialmistatement.anauditincludesexamining,onatestbasis,evidencesuportingtheamountsand disclosuresintilegeneralpuq)osefinmialstatements.anauditalsoincludesasesingtheacountingprinciplesused andsigni'fie~ltestimatesmadebymauagelnent,aswelasevaluatingtheoveralfinancialstatementpresentation.we believethatourauditprovidesareasonablebasisforouropinion. Ourauditwasconductedforfilepurposeoforminganopiniononthegeneralpurposefinancialstatementsofile VilageofAlbany,Louisiana,takenasawhole.TheacompanyingScheduleofFederalFinancialAsistanceis presentedforpuqlosesofaditionalanalysisandisnotarequiredpartofthegeneralpurposefinancialstatements. Theinformationinthatschedulehasbensubjectedtotheauditingproceduresapliedintheauditofthegeneral purpose15naucialstalementsand,inouropinion,isfairlypresentedinalnlaterialrespectsinrelationlothegeneral purposefinancialstatementstakenasawhole. BruceHarel&Colnpany,CPAs AProfesionalAcountingCorporation September4,196

26 NotestoFinancialStatements VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 L.TOTALCOLUMNONBALANCESHET ThetotalcolumnonthebalanceshetiscaptionedMemorandumOnlytoindicatethatitispresentedonlytofacilitate financialanalysis.datainthiscolumndoesnotpresentfinancialpositioninconformitywithgeneralyacepted 2.LEVIEDTAXES acountiugprinciples.neitherisuchdatacomparabletoaconsolidation. OnOctober9,195,theVilageaprovedanordinancetoreasesa6.35milageadvaloremtaxfor195.Thisisa permanentaxperconstitutionalauthority,andisubjectoanualrenewalbythevilageboardofaldermen.totalad ValoremTaxesleviedfortheyearendedDecember31,195,were$10,639.Thesetaxesweredueupontaxpayers'receipt oftheirtaxbilandbecamedelinquentjanuary1,196.interestonunpaidadvaloremtaxesisadedtotiletaxbilduring Marcb,196.Duetoimaterialityandcostfactorofcolections,noliensarcplJtagainstasesedproperlyupon uncolctibilityoftaxes. 3.CASIfANDCASHEQUIVALENTS AtJune30,196,tileVilagehascashandcashequivalents(bokbalances)totaling$762,429asfolows Cashon]land DexnandDeposits Interest-BearingDemandDeposits $ TimeDeposits 8, Total $762,429 46, ,56 "I~esedeposi~tsarestatedatcost,whichaproximatesmarket.Understatelaw,thesedeposits(oresultingbankbalances) nmstbesecuredbyfederaldepositinsuranceorthepledgeofsecuritiesownedbythefiscalagentbank.themarketvalue ofthepledgedsecuritiesplusthefederaldepositinsurancemustataltimesequaltheamountondepositwiththefiscalagent. Thesesecuritiesarcheldinthenameofthepledgingfiscalagentbankinaholdingorcustodialbankthatismutualy aceptabletobothparlies, AtJune30,196,theVilagehas$73,626indeposits(colectedbankbalances).Thesedepositsaresecuredfromriskby $150,412ofederaldepositinsuranceand$578,953ofpledgedsecuritiesheldbythecustodialbankilthenameofthefiscal agentbank(gasbcategory3).theremainingbalanceof$4,261isnotsecuredbythepledgeofsecuritiesandisa violation&slatelaw.eventhoughthepledgedsecuritiesareconsidereduncolateralized(category3)undertheprovisions ofgasbstatement3,louisianarevisedstatute39:129imposesastatutoryrequirementon/becustodialbanktoadvertise andselthepledgedsecuritieswithin10daysofbeingnotifiedbythevilagethathefiscalagenthasfailedtopaydeposited fuodsupondemand. 4.INVESTMENTS AtJune30,196,theVilagelindnoinvestments

27 Schedule13 Disbursements/Revenue Acrued Cash/ Expenditures Ending $(218,129)$ $(1,152)$ $,(1,J52)$ Repayments Principal Balances Ending_ Loan (1o,o) (5,849) $(?.0,142)$1,463,416 (3,684) (609) Theacompanyingnotesareanintegralpartofthesestatements

28 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 NotestoFinancialStatements 10.PROPERTY',PLANTANDEQUIPMENT Asunmaryofchangesingeneralfixedasetsfolows: Land Begining OficeImprovements Balance Aditions Deletions FurnitureandFixtures VehiclesandEquipment Total $ 15,834 $ 19,20 23,060 3,860 $ Balance41,0 Ending 4,47 Asmnmaryofproprietaryfundtypeproperly,plantandequipmentatJune30,196folows (29,0) 59,178 5,239 09,894 Land Building~ Years Life UtilityEquipment Utility"l~ruck 20 $ Cost 50,429 OficeEquipment ,867 94,809 $ Acumulated Depreciation WelFence UtilityShed 2,891 43,28 14,586 54,45 $ Net50,429 l)eprecialio 20,708 25,639 nthisyear 952 2,812 40,364 2,183 3,483 3,451 WaterSystem 459, ,74 9, ,97 1, ,50 174,42 SewerSystem 642,218 15, , , , WaterSystem 1,621, ,01 24,492 1,697 1, , ,349 SewerSystem WaterSystem Total ,69 84, ,217 $3,967,482 12,263 1,84 1,536,60 437,106 16,368 1,4959 1,207 $ 749,938$ ,815 13,519 8, ,217,54 1,982 40, ,19 Asumaryofchangesinproprietaryfundtypeproperty,plantandequipmentatJune30,196folows 107, Cost Begining AcumulatedDepreciation Balance Aditions Deletions Net $3,938,362 $3,289,123 (649,239) Alasetsaredepreciatedbythestraight-linemethod $ (107,604) (71,24)$ 36,360$ (7,240) 6,905 (35) $3,967,482 Ending Balance $3,217,54 (749,938) 20

29 1.CONTRIBUTEDCAPITAL VilageofAlbany,Louisiana NotestoFinancialStatements AsofandfortheYearEndedJune30,196 Contributionstowardtilecostofutilityplantandengineringserviceshavebenreceivedasfolows U.S.Goveroment-RECD U.S.Government-EPA LouisianaDepartmentofTransportation VilageofAlbany-GeneralFund U.S.Government-LCDBG U.S.Governlnent-RECD Private-CaveuhamProject TotalContributions AcumulaledAmortization NetContributedCapilal 12.CIANGFSINLONG-TERMDEBT $ 356,50 623,340 39,97 5,098 37,69 1,147,30 12,0 2,21,914 (350,43) $1,871,481 ThefolowingisasumaryofbondtransactionsoftheVilageofAlbanyfortheyearendedJune30,196 BondsPayable,July1,195 BondsIsued BondsRetired BondsPayable,June30,196 BondsPayableatJune30,196arecomprisedofthefolowingindividualisues WaterSystemRevenueBonds-RECDBonds91-01: $523,0utilitybondsoldtoRuralEeononricandComunityDevelopment, dated4/4/78,dueinanualinstalhnentsof$5,0-$29,0 throughaugust1,2017;interestat5% 1,483,58 20, , ,0 WaterSystemRevenueBonds-RECDBonds91-02: $575,0waterevenuebondsold1oRuralEconomicandComunityDevelopment, dated2/25/8,dueinanualinstalmentsovera40yearperiodafter thesystembecomesrevenueproducing;interestat53/4% 539,01 SewerSystemRevenueBonds-RECDBonds92-03: $45,0sewerevenuebondsoldtoRuralEconomicandComunityDevelopment, dated4/13/93,dueinmonthlyinstalhnentsof$2,289throughapril13, 203:interestat51/4% 46,71 SewerSystemRevenueBonds-RECDBonds92-05: $75,0sewerevenuebondsoldtoRuralEconomicandComunityDevelopment, dated4/13/93,dueinmonthlyinstalmentsof$37throughapril13, 203;interestat51/4% 73,64 1,463,416

30 VilageofAlbany,Louisiana NotestoFinancialStatements AsofandfortheYearEndedJune30,196 TheanualrequirementstoamortizealdebtoutstandingasofJune30,196,includinginterestpaymentsof$1,560,907are asfolows: YearEnding June RECD Bonds ,950 30,425 30,850 30,250 30, , , , RECD Bonds ,27$ 37,27 37,27 37,27 37,27 186, , , , ,385 62,129 65,50$1,180,439$ RECD Bonds ,464$ 27,464 27,464 27,464 27, , , , , , ,320 50,349 1,01,589$ RECD Bonds ,527 4,527 4,527 4,527 4,527 2,635 2,635 2,635 2,635 2,635 2,635 8,30 Total Payments $ 9,218 9,693 10,18 9,518 9, , , , , ,340 2, ,745$3,024, FLOWOFUNDS-RESTRICTIONSONUSE(WATERANDSEWERSYSTEMREVENUEBONDS) TilevotersoftileVilageofAlbanyaprovedtileisuanceof$530,0UtilityRevenueBondsilalelectionheldMay7, 197.ThegoverningauthorityadoptedaresolutiononJuly12,197,andsubsequentlyamendedonAugust9,197,and January5,1978,aulhorizingisuanceof$523,0ofUtilityRevenueBonds.Tileprocedsofthebondsarerestrictedfor useinacquiringthroughpurchase,improveureotandconstructionofawaterworksystemandsubjectotheprovisionsof dieabovereferencedresolutions.inconectionwiththeproject,thevilagewasaprovedforgranlsfromruraleconomic andcomunitydevelopment(recd)oftheunitedstatesofamericaintheamountof$356,50.thevilagesold $523,0oftheauthorizedbondstoRuralEconomicandComunityDevelopment.Thebondswereisuedforforty(40) yearspayablewithinterestatherateofivepercent(5%)peranum.tilebondsandanyinstalmentmaybepaidpriorto theduedateandmaturityflereofatapriceofparandacruedinterestotiledateofprepayment. $65,0oftheprocedswereusedpriortoJune30,1978,toacquireanexistingwatersystemand$842,624hasbenused inimprovementsandaditionalconstructionofthenewaterworksystem.duringthefiscalyearendedjune30,1980,tbe Vilagereceivedagrantof$39,97fromtheStateofLouisiana,DepartmentofTransportationandDevelopmentobeused intheproject. Aresolutionauthorizingtileisuanceof$575,0ofWaterRevenueBondsoftheVilageofAlbany,StateofLouisiana,to acquireandconstructimprovementsandextensionstothewaterworksystemofthevilagewasadopteddecember14,1987. ThebondsweresoldtoRuralEconomicandComunityDevelopmentandaredueinforty(40)analpaymentswith interestcalcultatedonunpaidprincipalatarateofiveandthre-fourthspercent(53/4%)peranum.thevilagemayprepay thewholeoranypartoftheprincipalamountofanyinstalmentatanytimeininversechronologicalorderatileprincipal amounthereofandacruedinterestothedatefixedforprepayment. Aresolutionauthorizingtileisuanceof$530,0ofSewerRevenueBondsoftheVilageofAlbany,StaleofLouisiana,for theimprovementandconstructionofaseweragesystemofthevilagewasadoptedoctober14,191.thebondsweresold toruraleconomicandcomunitydevelopmentandaredueinmonthlyinstalmentsof$2,6forforty(40)yearswithan

31 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 NotestoFinancialStatements interestrateofiveandone-fourthpercent(51/4%)peranum.thevilagemayrepaythewholeoranypartoftheprincipal amountatanytime.underthetermsofthebondprocedstothevilage,therevenuebondsarepayableastoprincipaland interestsolelyfrmntheincomeandrevenuesderivedfromtileoperationofthecombinedutilitysystemofthevilageafter provisionhasbenmadeforpaymentofthereasonableandnecesaryexpensesofadministering,operating,andmaintaining tilesystem.thesebondsdonotconstituteanindebtednesorpledgeofthegeneralcreditofthevilagewithintilemeaning ofanyconstitutionalorstatutorylimilationofindebtednes. Eachmonththerewilbesetasideintoafundcaled"BondandInterestSinking(Redemption)Fund"asumequaltonetwelfth(1/12)ofti~einterestdueoiltilenextinterestpaymentdue,and,inadition,asumequaltone-twelfth(1/12)ofthe principalpayraeutdue,togetherwithsuchproportionatesumasmayberequiredasthesamerespectfulybecomedueonsuch date.moneyinthesinkingfundshalbedepositedastrustfundsandshalbefulysuficientoasurethepromptpayment oftheprincipalandinterestinstalmentsastheybecomedue,andmaybeusedonlyforsuchpayments.asofjune30,196, tilesinkingfundwasfulyfundedwithabalanceof$54,871. Thereshalalsobesetasideintoa"UtilitySystemBondReserveFund"asumequaltofivepercent(5%)ofthemontidybond payment,or$418aftertheconstructionbecomesrevenueproducinguntiltilereisacumulatedthereinanamountequalto thehighestanualdebtservicepaymentinanyfutureyear.suchamountsmaybeusedonlyforthepaymentofmatring bondsandinterestcouponsforwhichsuficientfimdsarenotondepositinthebondandinterestsinkingfundastowhich therewouldotherwisebedefault.asofjune30,196,thereservefundwasfulyfundedwithabalanceof$62,567. Fundswilalsobesetintoa"DepreciationandContingencyFund"aftereompletiouoftileprojectatherateof$485per moulhuntilthebalanceinthisftmdamountstothemaximumrequiredbyrecd.moneyinflitsfiredwilbeusedformaking extraordinaryrepairsoreplacementstothesystemwhicharenecesarytokeptilesystemiloperatingcondition,cnbance itsrevenue-producingcapacity,orprovideforahigherdegreofserviceforwhichmoneyisnotavailableasamaintenance andoperatiottexpense.moneyinthisfundmayalsobeusedtopayprincipalandinterestonthebondsfalingdueatanylime thereisnotsuficientmoneyfortileotherbondfunds.asofjune30,196,thedepreciationandcontingencyfundwasfifly fundedwithabalanceof$59,984. Altilereventlesreceivedinanyfiscalyearandnotrequiredtobepaidinsuchfiscalyearintoanyoftheabovenotedfunds shalberegardedasurplusandmaybeusedforanylawfulcorporatepurpose.

32 NotestoFinancialStatements VilageofAlbany,Louisiana AsofandfortheYearEndedJune30, COMPENSATIONPAIDELECTEDOFICIALS ThomasSlewart,Mayor Name,Title,Adres,Telephone Compensation PostOficeBox1346 Albany,LA7071 3,98! Januaryl,195- TermofOfice December31, / Jesie]F'letcher,Alderman PostOficeBox417 Albany,LA January1,195- December / EdmorldHaris,Alderman PostOficeBox105 Albany,1.A January1,195- December / BelyWild,Alderwoman PostOficeBox9 Albany,LA7071l 780 January1,195- December3i, / RuselhJtchinsol~,PoliceChief PostOficeBox273 Albany,IrA ,20 Jamry1, / December31,196 5,431 24

33 BRUCEHAREL&CO. CER'lFIEDPUBLICACOUNTANTS AProfesionalAecounln9Corporation Weconsideredtheseinstancesofnoncomplianceinformingouropiniononcompliance,whichisexpresedinthe folowingparagraph. Thisreportisintendedfortileinformationofmanagement,theLouisianaLegislativeAuditorsandtheFcdcral CognizantAgency.However,thisreportisamaterofpublicrecordanditsdistributionisnotlimited. BruceHarelandCompany,CPAs AProfesionalAcountingCorporation Scptcmbc:r4,196 56

34 VilageofAlbany,Louisiana AsofandfortheYearEndedJune30,196 NotestoFinancialStatements H.FIXEDASETS Generalfixedasetsarerecordedathetimepurchased,andtherelatedasetsarecapitalized(reported)inthegeneral fixedasetsacountgroup.alfixedasetsarevaluedathistoricalcostorestimatedcost(thextentowhichfixedaset costshavebenestimatedandthemethodsofestimationshouldbedisclosed)ifbistoricalcostisnotavailable. I.COS~[PENSATEDABSENCES TheVilagehasthefolowingpolicyrelatingtovacationandsickleave EachVilagemployewithone(1)yearserviceisgivenfive(5)daysvacationleave;eachemployewithtwo(2)oz" moreyearserviceisgiven{en(10)daysvacationleave. Eachemployearnsickleaveatherateof5/12dayforeachmonthworked.Sickleaveisacumulatedforan indefiniteperiodwithamaxilnumsickleaveoftwenty-five(25)days. J.LONG-TERMLIABILITIES Long-tenuliabilitiesarerecognizedwithintheEnterpriseFund K.FUNDEQUITY ContributedCapital Grants,entitlements,orsharedrevenuesreceivedthatarerestrictedfortileacquisitionorconstructionofcapital aset.';arerecordedascontributedcapital.contributedcapitalisamortizedbasedonthedepreciationrecognizedon thatportionoftheasetsacquiredfromsuchcontributious.thisdepreciationisclosedtothecontributedcapital acountandisreflectedasanadjustmentofundequity. Reserves Reservesrepresenthoseportionsofundequitylegalysegregatedforaspecificfutureuse DesignatedFundBalance Desi~,uatedfundbalancerepresentstentativeplansforfutureuseofinancialresources

35 BruceC.l![arel,CPA WarenA.Wol,CPA MichaelP.Estay,CPA Daletl.Jones,CPA CharlesP.lebei1,CPA BRUCEHAREL&CO. CERTIFIEDPUBLICACOUNTANTS AProfesiona~AecountingCorpora~on 109WestMhmesotaPark ParkPlaceSuile7 Hanunond,LA70403 VOICE:(504) FAX:(504) KENTWOI)OFICE P.O.Box45-602FifthSt. Kentwod,LA704 VOICE:(504) FAX:(504) MEMBERS AmericanInstiluleofCPAs SociclyofLouisianaCPAs INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEWITHSPECIFICREQUIREMENTS APLICABLETOMAJORFEDERALFINANCIALASISTANCEPROGRAMS ThelIonorablcMayor,ThomasStewart AndMembersoftheBoardofAldemlen VilageofAlbany,l,ouisiana Wehaveauditedthegeneralpuq)oscfinancialstatementsoftheVilageofAlbany,Louisiana,asofandforthe),ear endedjun,30,196,andhaveisuedoureporthereondatedseptember4,196 XVchavealsoauditedtheVilageofAlbany,Louisiana'scomplimlcewiththerequirementsgoverningtypesofservices alowedorunalowed;matching;levelofefort,orearmarking;reporting;specialtestsandprovisions;claimsfor advancesandreimbursements;andamountsclaimedorusedformatchingthatareaplicabletoeachofitsnạior federalfinancialasistanceprograms,whichareidentifiedintheacompanyingscheduleoffederalfinancial Asistance,fortheyearendedJune30,196.ThemanagementoftheVilageofAlbany,Louisiana,isresponsiblefor thevilageofalbany,louisiana'scompliancewiththoserequirements.ouresponsibilityistoexpresanopinion oncompliancewiththoserequirementsbasedolouraudit. Weconductedourauditofcompliancewiththoserequirementsinacordancewithgeneralyaceptedauditing standards,governmentauditingstandards,isuedbythecomptrolergeneraloftheunitedstales,andoficeof ManagementmadBudgetCircularA-128,AuditsofStateandLocalGovernments.ThosestandardsandOMBCircular A-128requireflintweplanandperformtheauditobtainreasonableasurmlceaboutwhefl~ermaterialnonconlpliance withtherequirementsreferedtoaboveocured.anauditincludesexamiuiug,onatestbasis,evidenceabouthe VilageofAlbmly,Louisiaua'scompliancewiththoserequirements.Webelievethatourauditprovidesareasonable basisforouropinion. Theresultsofourauditdisclosedimaterialinstancesofnoncompliancewiththerequirementsreferedtoabove whicharedescribedasfolows: QuarterlyfinancialreportsrequiredbyRECDarenotbeingfiledinatimelylnatmer Recomendation: TheVilageofAlbmly,LouisianashouldfiletheirquarterlyfinancialreportswithRECDinatimelymaner ManagementResponse TheVilagewilfiletheirquarterlyfinancialreportswithRECDinatimelymaner.Thequarterlyreportforthe quarlerendedjune30,196wasfiledwithrecdonjuly15,196.

36 VilageofAlbany,Louisiana StatementofCashFlows ProprietaryFundType-EnterpriseFund FortheYearEndedJune30,196 CashFlowsFromOperatingActivities OperatingIncome AdjustmentstoReconcileNelOperatingIncometoNetCashProvided(Used) byoperalingactivities: Depreciation ChangesinAcountsReceivable ChangesinDueFromOtherFunds ChangesinDueFromOtherGovernments ChailgesinAcountsPayable ChangesinOtherAcruedExpenses ChangesinDueToOthert:unds Chal~gesinCuslomcrDepositsPayable NetCashProvided(Used)byOperatingActivities CashFlowsFromNoncapitalFinancingActivities OperatingTransferIn NetCashProvided(Used)byNoneapitalFinancingActivities CashFlowsFromCapitalandRelatedFinancingActivities PaymeJ~tsforCapitalAcquisitions ContributedCapital hltereslcol/e InterestExpense PrincipalRepayments NetCashProvided(Used)byCapitalandRelatedFirmncingActivities NetIncreaseinCash Cash,BeginingofYear Cash,EndofYear Theacompanyingnotesareanintegralpartofthesestatements. 37 Schedule8 $21, ,604 2,864 (13,361) 30,960 (6,160) (4,254) 10,26 6, ,046 3,36 13,361 (36,359) 12,0 17,598 (79,176) (20,142) (106,079) 63, ,501

37 ScheduleofChangesinAsetsRestrictedforRECDRevenueBondDebtService VilageofAlbany,Louisiana FortheYearEndedJune30,196 EnterpriseFund Schedule9 CashBalan,ze,BeginingofYear Redemption Bondand Interest CashReceipts 54,71$ Reserve Bond CashDisbursements 9,818 47,74$ CashBalance,EndofYear (9,718) 14,793 Depreciation Contingency and 54,164$ 5,820 Total156, $62.567$ $17,42 120,431 (9~718) 'rileacompanyingnotesareanintegralpartofthesestatements 38

38 ScheduleofWaterandSewerRates VilageofAlbany,Louisiana EnterpriseFund June30,196 WaterRates Residential: $1050permonthforthefirst2,0galons $1.30perthousandorparthereoforthenext2,0galons $1.0perthousandorparthereoforthenext6,0galons $0.80perthousandorparthere&over10,0galons Comercial: $20.0permonthforthefirst10,0galons CustomersatJune30,196 $0.80perthousandorparthercofover10,0galons Residential Comercial Total SewerRates Residential: Comercial: $12.0permonthplus$0.80perthousandgalons $20.0permonthplus$0.80perthousandgalons CustomersatJune30,196 Residential Comercial Total Schedule10 Theacompanyingnotesareanintegralpartofthesestatements 39

39

40 Theacompanyingnotesareanintegralpartofthesestatements

41 ScheduleofRevenuesandExpenses VilageofAlbany,Louisiana Schedule7 FortheYearEndedJune30,196 BudgetandActual SewerDepartment OperatingRevenues-Sewer Budget Actual (Unfavorable) Variance Favorable SewerCharges TotalOperatingRevenues-Sewer 61,0 60,896 (104) (1o4) OperatingExpenses-Sewer Salaries ContractServices MaintenanceMaterials 2,197 6,40 Repairs&Maintenance 5,0 12,81 OficeSt:q)pliesaodExpense 1,60 5,162 1,271 5,129 (684) Utilities Insl.lrance ProfesionalServices 6,60 1, )(2) 4,90 Payrol3axes 4,40 7,246 4,185 Edueatio~al Depreciation 1, ,396 (646) (20) 715 1, O Miscelaneous BadDebtExpense TotalOperatingExpenses-Sewer 107,805 64, , ,46 (6,47)65 (2,641) (621) NetOperatingIncome(Los)-Sewer NonoperatingRevenues(Expenses)-Sewer (46,805) (49,50) (2,745) Interesthlcolne BondInterestExpense OperatingTransfersIn(Out)-Sewer TotalNonoperatingRevenues(Expenses) (27,31) 8,79 08,512) (27,31) 8,79 13,361 (18,512) NetIncome(Los)-Sewer (51,956) (54,701)$ 13,36 (2,745) Theacompanyingnotesareanintegralpartofthesestatements