(withcomparativetotalsfordecember31,194) December31,195

Transcription

1 TheGlobalLeade Iv GeneralPurposeFinancialStatementsandSchedules CITYOFHARAHAN,LOUISIANA (withcomparativetotalsfordecember31,194) December31,195 WithIndependentAuditors'ReportThereon

2 CITYOFHARAHAN,LOUISIANA TableofContents December31,195 IndependentAuditors'Report Page GeneralPurposeFinancialStatements: CombinedBalanceShet-AlFundTypesandAcountGroups CombinedStatementofRevenues,ExpendituresandChanges CombinedStatementofRevenues,ExpendituresandChanges infundbalances-algovernmentalfundtypes StatementsofRevenues,ExpensesandChangesinRetained infundbalances-budgetandactual-generalfund- GAPBasis 456 StatementsofCashFlows-ProprietaryFundType- Earnings-ProprietaryFundType-EnterpriseFund NotestoGeneralPurposeFinancialStatements EnterpriseFund SuplementaryInformation: ~F~dule~ DebtServiceFunds: CombiningBalanceShet ScheduleofCompensationPaidtoAldermen CombiningStatementofRevenues,Expendituresand ChangesinFundBalances

3 Suile350OneShelSquare NewOrleans,LA Ind~oend~nt~ud~tor~'R~nrt TheHonorableMayorandAldermen CityofHarahan,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityof Harahan,Louisiana,asofandfortheyearendedDecember31,195,aslisted intheacompanyingtableofcontents.thesegeneralpurposefinancial statementsaretheresponsibilityofthecity'smanagement.our responsibilityistoexpresanopiniononthesegeneralpurposefinancial statementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditing standardsandgovernmentauditingstandards,isuedbythecomptrolergeneral oftheunitedstates.thosestandardsrequirethatweplanandperformthe audittoobtainreasonableasuranceaboutwhetherthegeneralpurpose financialstatementsarefreofn~terialmistatement.anauditincludes exanliningzonatestbasistevidencesuportingtheamountsandisclosuresin thegeneralpurposefinancialstatements.anauditalsoincludesasesing theacountingprinciplesusedandsignificanteatimtesmadebymanagement, aswelasevaluatingtheoveralfinancialstatementpresentation.we believethatourauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabove presentfairly,inalmaterialrespects,thefinancialpositionofthecity ofharahan,louisiana,asofdecember31,195,andtheresultsofits operationsandthecashflowsofitsproprietaryfundtypefortheyearthen endedinconformitywithgeneralyaceptedacountingprinciples. InacordancewithGovernmentAuditingStandards,wehavealsoisueda report,datedapril29,196,onourconsiderationofthecity'sinternal controlstructureandareport,datedapril29,196,onitscompliancewith lawsandregulations. Ourauditwasmadeforthepurposeoforntlnganopiniononthegeneral purposefinancialstatementstakenasawhole.thecombiningfinancial statementsincludedinschedulesland2andschedule3listedas suplementaryinformationintheacompanyingtableofcontentsarepresented forpurposesofaditionalanalysisandarenotarequiredpartofthegeneral purposefinancialstatementsofthecityofharahan,louisiana.such informationhasbensubjectedtotheauditingproceduresapliedintheaudit ofthegeneralpurposefinancialstatententsand,inouropinion,isfairly presentedinalmaterialrespectsinrelationtothegeneralpurpose financialstatementstakenasawhole. April29,196 i

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7 Revenues CITYOFHARAHAN,LOUISIANA combinedstatementofrevenues,expendituresandchangesin FundBalances-BudgetandActual- GeneralFund-GAPBasis YearendedDecember31,195 Taxes Licensesandpermits Xntergovernmental Chargesforservices Finesandforfeits Interest,gamingrevenueand miscelaneousincome Totalrevenues Expenditures: Generalgovernment Publicsafety-police Publicsafety-fire Highwaysandstrets Sanitation Recreation Totalexpenditures Revised Budoet Variance- Favorable ~ctual(unfavorable) (5,492) 45,98 103,36 25,896 (34,242) I= ,319 81, ,13 154, , ,61 869,237 41,539 15, , (19,292) (58,20) (3,406) (928) (106,398) [3.387} 2~ ~ DeficiencyOfrevenues overexpenditures _46.0)~46.897) ) Otherfinancingsources: Operatingtransfersin Operatingtransfersout Totalotherfinancing SOUrCes 50,0610,23110,231 (5.0)45.040)9n960 _45.0_~565,191~ Exces(deficiency)of revenuesandothersources overexpendituresand otheruses (i,0)98,294 9, _ Fundbalancesatbeginingofyear Fundbalancesatendofyear $94,127193~421~294 Seacompanyingnotestogeneralpurposefinancialstatements.

8 CITYOF}LARAHAN,LOUISIANA StatementsofRevenues,ExpensesandChangesinRetainedEarnings- ProprietaryFundType-EnterpriseFund YearsendedDecember31,195and194 Operatingrevenues: Chargesfoxservices Propertytaxes Miscelaneous Totaloperatingrevenues Operatingexpenses: Personelservices Contractualservices Suplies,n~intenanceandrepairs Powerandlight Depreciation Totaloperatingexpenses Operatingincome(los) Nonoperatingrevenuesinterestincome Netincome(los) Adepreciationoncontributedfixed asets(notei0) Increaseinretainedearnings Retainedearningsatbeginingofyear Retainedearningsatendofyear $34,719 39,518342,569 20, ,905 56,05 80,248 34, ,898 58,684 78,019 42, ,043(61,861) , (61,237) , $345,753 Seacompanyingnotestogeneralpurposefinancialstatements ri04

9 CITYOFHARAHAN,LOUISIANA StatementsofCashFlows- ProprietaryFundType-EnterpriseFund YearsendedDecember31,195and194 Cashflowsfromoperatingactivities: Cashreceivedfromcustomers Taxesreceived Cashpaidtosupliersofgodsorservices Cashpaidtoemployesforservices Otheroperatingrevenue i~ ,94 20,729 (173,494) (148,5) 584 Netcashprovidedbyoperatingactivities 92,93932,208 Cashflowsfrominvestingactivitiesinterestreceived Netincreaseincash.~=9~ ,84332,831 Cashandcashequivalentsatbeginingofyear 37.SJ~Q4.679 Cashandcashequivalentsatendofyear $132,35337r510 Thereconciliationofoperatingincome(los)tonetcash operatingactivitiesfortheyearsendeddecember31,195and folows: Operatingincome(los) Adjustmentstoreconcileoperatingincome(los) tonetcashprovidedbyoperatingactivities: Depreciation Increaseinacountsreceivable (Decrease)increaseinacountspayableand acruedexpenses Increaseinduetotherfunds Netcashprovidedbyoperating activities $2,043 6,479 (1,932) (6,760) providedby 194isas 194 (61,861) 6,659 (9,624) 3, $~932,208 Seacompanyingnotestogeneralpurposefinancialstatements

10 NotestoGeneralPurposeF~nancialStatements CITYOFHARAHAN,LOUISIANA December31,195 (1) TheCityofBarahan,Louisiana(theCity)wasincorporatedunderthe rvnf.gln~f~cantachnt~nsp~]~eles provisionsofthestateoflouisianalawrasonactin1920asavilage withapopulationthenof50peopleandanareaof2.1squaremiles. Itwasclasifiedasacityin1953withapopulationofover10,0 people.thecity'scurentpopulationisaproximately10,052people. TheCityoperatesunderaMayor-BoardofAldermenformofgovernment. TheCity'sfinancialstatementsincludetheacountsofalCity operations.thecity'soperationsincludepoliceandfireprotection, wastecolectionparks,recreation,publicworksandgeneral administrativeservices.inadition,thecityownsandoperatesa localsewersystem. TheacountingpoliciesoftheCityconformtogeneralyacepted acountingprinciplesasaplicabletogovernmentalunits.the folowingisasurmaryofthemoresignificantpolicies: (a) Renrt~n~Entity TheCity'sgeneralpurposefinancialstatementsincludeoperations ofalactivitiesoverwhichthecityexercisesoversight responsibility.oversightresponsibilityisdemonstratedthrough financialinterdependency,selectionofgoverningauthority, abilitytosignificantlyinfluenceoperations,andacountability forfiscalmatersand,asuch,thecityisareportingentity. Forfinancialreportingpurposes,theCityincludesalfundsand acountgroupsthatarecontroledbyordependentonthemayorand (b) thecity'sboardofaldermen. BasisnfPresentatin-F1~n~Acn1~ntlna TheacountsoftheCityareorganizedonthebasisofundsor acountsgroups,eachofwhichisconsideredaseparateacounting entity.theoperationsofeachfundareacountedforwitha separatesetofself-balancingacountsthatcompriseitsasets, liabilities,fundequity,revenues,andexpendituresorexpenses, asapropriate.governmentresourcesarealocatedtoand acountedforinindividualfundsbaseduponthepurposesforwhich theyaretobespentandthemeansbywhichspendingactivitiesare controled. TheoperationsoftheCityarerecordedinthefolowingfundtypes andacountgroups: GovernmentalfundsareusedtoacountfortheCity'sexpendable financialresourcesandrelatedl~abilities(excepthoseacounted (Continued

11 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA forinproprietaryfunds).themeasurementfocusisuponthe determinationofchangesinfinancialposition.thefolowingare thecity'sgovernmentalfundtypes. ~eneralfund-thisfundisthegeneraloperatingfundofthe City.Itisusedtoacountforalfinancialresourcesexcept thoserequiredtobeacountedforinanotherfund. ~pecialrevenuefund-thisfundisusedtoacountforthe procedsofspecificrevenuesources(otherthanexpendable trustsormajorcapitalprojects)thatarelegalyrestrictedto expendituresforspecifiedpurposes.curently,salestax procedsflowthroughthespecialrevenuefund,firstomet debtservicerequirementsandthentothegeneralfund. acumulationofresourcesfor,andthepaymentof,generalongtermdebtprincipal,interestandrelatedcosts. ebtservicefunds-thesefundsareusedtoacountforthe CapltalProlectsFunds-Thesefundsare financialresourcestobeusedfor constructionofmajorcapitalfacilities usedtoacountfor PronrletarvFun~Tvne financedbyproprietaryfunds). theacquisitionor (otherthanthose Proprietaryfundsareusedtoacountforactivitiesthatare similartothosefoundintheprivatesector.themeasurement focusisuponthedeterntinationofnetincomeandcapital maintenance.thecity'soleproprietaryfundisseweragedistrict NO.1(theDistrict),anenterprisefund. ~nterdrisefund-thisfundis thedistrictwhere:(a)itis similartoaprivatebusines determinationofnetincomeis usedtoacountforoperationsof financedandoperatedinamaner enterprise,and(b)theperiodic apropriate. ~eneralfixedasetsacountgroup-thisacountgroupisused toacountforalfixedasetsofthecity,otherthanthose acountedforinthecity'sproprietaryfund,thedistrict. ~enerallone-termdebtacountgroup-thisacountgroupisused toacountforalong-termobligationsofthecityexcepthose c) acountedforinthecity'sproprietaryfund,thedistrict. Basisofacountingreferstothetimingofwhenrevenuesand expendituresorexpensesarerecognizedintheacountsand reportedintheacompanyingeneralpurposefinancialstatements. (Continued)

12 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA Algovernmentalfundsareacountedforusingacurentfinancial resourcesmeasurementfocus.withthismeasurementfocus,only curentasetsandcurentliabilitiesgeneralyareincludedon thegeneralpurposebalanceshet.operatingstatementsofthese fundspresentincreases(i.e.,revenuesandotherfinancing sources)andecreases(i.e.texpendituresandotherfinancing uses)inetcurentasets. Specificaly,governmentalfundsareacountedforusingthe modifiedacrualbasisofacounting.theirrevenuesare recognizedwhentheybecomemeasurableandavailableasnetcurent asets.expendituresaregeneralyrecognizedasaliabilitywhen incured.principalandinterestongeneralong-termdebtis recognizedwhendue. Theproprietaryfundisacountedforonaflowofeconomic resourcesmeasurementfocus.withthismeasurementfocus,al asetsandaliabilitiesasociatedwiththeoperationofthese fundsareincludedontheacompanyinggeneralpurposebalance shet.fundequity(i.e.,netotalasets)isegregatedinto contributedcapitalandretainedearningscomponents.proprietary fund-typeoperatingstatementspresentincreases(e.g.,revenues) andecreases(e.g.,expenses)inetotalasets. TheCity'sproprietaryfund,theDistrict,isacountedforusing theacrualbasisofacounting.revenuesarerecognizedwhenthey arearned,andexpensesarerecognizedwhenincured.basedon historicalcolectionexperience,noalowanceforestimated uncolectiblereceivablesisrecorded. TheCity'sproprietaryfundapliesalaplicableFASB pronouncementsisuedonorbeforenovember30,1989inacounting foritsoperationsunlesthosepronouncementsconflictwithor contradictgasbpronouncements. Propertytaxesarerecognizedasrevenueintheyearforwhich taxeshavebenleviedandcolected.licensesandpermits,fines andforfeitures,andmiscelaneousrevenuesarerecordedas revenueswhenreceivedincashbecausetheyaregeneralynot measurableuntilactualyreceived.investmentearningsare (d)fjlcumbrances recordedasearned. Encumbranceacounting,underwhichpurchaseorders,contracts,and othercom~tltmentsarerecorded,isemployedbythegeneralfundand CapitalProjectsFunds.Enc~nbrancesoutstandingatyearendare reportedasreservationsoffundbalancesbecausetheydonot constituteexpendituresorliabilities.asmaterialsare subsequentlyreceivedandconstructioncontractsareexecuted, liabilitiesarerecordedandtherelatedencumbrancesare liquidated. (Continued) I0

13 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA (e) Cashincludesamountsonhandandondepositatfinancial institutions.thecityconsidersalhighlyliquidinvestments withoriginalmaturitiesofthremonthsorlestobecash equivalents. Investmentsarestatedatcost depositsandu.s.treasurybils thanthremonths. andconsistofcertificatesof withoriginalsmaturitiesgreater Forpurposesofthestatementofcashflows,alhighlyliquid investmentswithanoriginalmaturityofthremonthsorlesat (f) dateofacquisitionareconsideredtobecashequivalents. Generalfixedasetsarerecordedasexpendituresinthe governmentalfundsandcapitalizedatcostinthegeneralfixed asetsacountgroup.certainimprovementsuchasroads,bridges, curbsandguters,stretsandsidewalks,drainagesystemsand lightingsystemsarenotcapitalized.suchasetsarenormaly imovableandofvalueonlytothecity.contributedfixedasets arerecordedatheirestimatedfairvaluesathetimereceived. (g) Depreciationisnotprovidedongeneralfixedasets Property,plantandequipmentusedbytheproprietaryfundis statedatcost.contributedasetsarerecordedatfairmarket valueathetimereceived.netinterestcostsarecapitalizedon projectsduringtheconstructionperiod.depreciationisprovided usingthestraight-linemethodoverthestimatedusefullives. Depreciationonasetsacquiredthroughcontributionsischargedto (h) contributedcapital. TheCity'spolicypermitsemployestoacumulatealimitedamount ofearnedbutunusedvacationbenefits.benefitsareacruedin theperiodtheyareearned.acumulationofvacationtimeis dependentuponthenumberofpayperiodsanemployeworks,and theirlengthofemployment.foralemployesbelow5yearsof employment,thecityalowsa1/2dayofvacationtimeperpay period(2weks).foremployesbetwen5andi0yearsof employment,thecityalows5/8dayofvacationtimeperpay period.foremployeswithoveri0yearsofemployment,3/4dayof vacationtimeperpayperiodisearned.earnedvacationtimemay becariedforwardbyemployeswithover10yearsofemployment, notoexced90daysofearnedvacationtime.acruedvacation payisrecordedinthegeneralfundandenterprisefund. (Continued) Ii

14 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA (i)~dndequity Reservedfundbalanceandretainedearningsindicatethataportion offundequitylegalyissegregatedforspecificpurposes. Designatedfundbalanceindicatesthatportionofundequityfor (j) whichthecityhasmadetentativeplans. TotalcolumnsonthecombinedstatementsarecaptionedMemorandum Onlytoindicatethattheyarepresentedonlytofacilitate financialanalysis.datainthesecolumnsdonotpresentfinancial positionorresultsofoperationsinconformitywithgeneraly aceptedacountingprinciples.neitherisuchdatacomparableto aconsolidation.interfundeli~natlonshavenotbenmadeinthe (k) agregationofthisdata. Comparativetotaldatafortheprioryearhavebenpresentedin thegeneralpurposefinancialstatementsinordertoprovidean understandingofchangesinthecity'sfinancialpositionand operations.however,comparativedata(i.e.,presentationofprior yeartotalsbyfundtype)havenotbenpresentedineachofthe statementssincetheirinclusionwouldmakethestatementsunduly complexanddificultoread.certainreclasificationsofprior yeardatahasbenmadetopresentthe194amountsconsistently (2) withthe195presentation. TheCity'sproceduresinestablishingthebudgetarydataincludedinthe genera],purposefinancialstatementsareasfolows: (I)PriortoDecemberi,theM~yorsubmitstotheCity'sBoardof Aldermenaproposedoperatingbudgetforthefiscalyear conunencingthefolowingjanuaryi.theoperatingbudgetincludes (2) (3) proposedexpendituresandthemeansofinancingthem. PublichearingsareconductedintheCitytobtaintaxpayer conmaents. PriortoJanuaryI,thebudgetislegalyadoptedthroughpasage (4)TheMayorisauthorizedtotransferbudgetedamountsbetwenline ofanapropriationordinancebytheboardofaldermen. itemswithinadepartment;however,anyrevisionsthatalterthe totalexpendituresofanyfundordepartmentmustbeaprovedby (5)Formalbudgetaryintegrationisemployedasamanagementcontrol thecity'sboardofaldermen. deviceduringtheyearforthegeneralandspecialrevenuefunds. (Continued) 12

15 (3) (6) CITYOFHARAHAN,LOUISIANA NotestoGeneralPurposeFinancialStatements FormalbudgetaryintegrationisnotemployedforDebtService Fundsbecauseefectivebudgetarycontrolisalternatively achievedthroughgeneralobligationbondindentureprovisions. Project-lengthfinancialplansareadoptedfortheCapitalProject Fundsandareusedasanexpenditurecontroldevice. ThebudgetsfortheGeneralandSpecialRevenueFundsareadopted onabasisconsistentwithgeneralyaceptedacounting principles(gap).alunencumberedandunexpendedapropriations lapseatyearend. (7)Asrequiredbystatelaw,whenactualrevenueswithinafundare failingtometestimatedanualbudgetedrevenuebyfivepercent ormore,and/oractualexpenditureswithinafundareexceding estimatedbudgetedexpendituresbyfivepercentormore,abudget amendmentoreflectsuchchangesisadoptedinanopenmeting. FortheyearendedDecember budgetwasnotadoptedprior Fundacountsforsalestaxes 31,195,aspecialrevenuefund toyearend.thespecialrevenue receivedandrecordsthetransfers ofcolectionstotherespectiverecipientfunds:generalfundand debtservicefunds.thegeneralfundbudgetamendmentswerenot adoptedin195tocomplywiththe5%budgetaryrequirementas outlinedinote2. AtDecember31,195,theCityhasthefolowingcashandcash equivalents: Demandeposits Moneymarket Timecertificatesofdeposit Totalcashandcashandeqsivalents $402,72 i0, $645r989 AtDecember31,195,cashandtimecertificatesofdepositarentirely insuredorcolateralizedwithsecuritiesheldbyamutualyaceptable third-partyfinancialinstitutioninthecity'sname,whichisthe lowestcreditriskasdefinedbythegovernmentalacountingstandards Board.ThebankbalancesandcolateralizationatDecember31,195are asfolows: Totalbankbalances Totalcertificatesofdeposit Totaldeposits Federaldepositinsurance Pledgedsecurities Totalcolateral Excescolateral 13 $567, , $1,621,436 (Continued)

16 CITYOFHARA~Ln2~,LOUISIANA NotestoGeneralPurposeFinancialStatements LouisianaRevisedStatutesauthorizetheCitytoinvestinUnitedStates bonds,treasurynotes,certificatesorotherobligationsoftheunited StatesofAmerica,ortimecertificatesofdepositofstatebanks organizedunderlouisianalawsandnationalbankshavingprincipal oficesinthestate. (4)PropgJctyTax (5) PropertytaxesonrealandpersonalpropertyareleviedbytheCityas anenforceablelienonthepropertyasofjanuaryi;thetaxesare payableonjanuary1,andaredelinquentonmarchi. TheasesedvalueofthepropertyisdeterminedbytheJefersonParish asesor'sofice.theasesedvalueatjanuaryit195,uponwhich the195levieswerebased,was$36,018,607.thecombined194taxrate was$12.68per$i,0ofasesedvaluation.ofthisamount,$1.5was availableforgeneraloperationsand$1.13wasavailableforsewerage operationsandmaintenance. Asurm~iryofchangesingeneralfixedasetsisasfolows Land,landimprovementsandbuildings Transportation equipment Otherequipment Furnitureandfixtures Computerequipment Januaryi, December31t 195AditionsDeletions195 $1,405, , ,530 21, ,267 17,49 $~ 61JT_L716 1,405, , ,979 21, Asununaryofproprietaryfundtypeproperty,plantandequipmentat December31,195isasfolow3: Estin~ted usefulife in~ars Land Rightsofway Seweragecolectionsystem Seweragetreatmentplant Vehicles Furniture Lesacumulatedepreciation Nointerestwascapitalizeduring $7,121 6,606 3,50, ,687 41,34 _ ,48,239 $3,106, i0 (Continued)

17 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA (6) ~n~lnhl~n~n~nh~ Thefolowingisas~ryoflong-termdebtchangesfortheyearended December31,195: GeneralLong-Tern% Debtacountgroup JanuaryI, 19~ RetirementsDecember31, 195 TheCityisubjecttotheMunicipalFinanceLawoftheStateof Louisianawhichlimitstheamountofnetbondeddebt(exclusiveof revenueandspecialasesmentbonds)thecitymayhaveoutstandingto i0percentoftheasesedvaluation.atdecex~ber31,195,general obligationbondsoutstandingwere$85,0.thestatutorydebtlintitat thatdatewas$3,401,0providingalegaldebtmarginof$3,316,0. Generalobligationbonds,including bonds,payableatdecember31,195șalestaxrefundingandimprovement $50,0197PublicImprovementBondsSeriesB arecomprisedofthefolowing dueinanualinstalmentsof$40,0to $45,0throughJuneI,197,at5.0% $1,845,01989SalesTaxRefundingand interestrate $85,0 ImprovementBondsdueinmonthlyinstalments of$18,40includinginteresthroughjunei, 206,atvariousinterestrates $It72r Theanualrequirementstoamortizealdebtoutstandingasof December31,195,includinginterestpaymentsof$686,290,areas folows: Yearending December $264,050 26, ,80 $2,408, (Continued 15

18 CITYOFHARAHAN,LOUISIANA NotestoGeneralPurposeFinancialStatements Theindenturesunderwhichthese establishmentofdebtservicefundsbondswereisuedprovideforthe asfolows: i.debtservicefundsarerequiredforthepaymentofinterestand principalonthe197publicimprovementbonds.monthlydeposits arerequiredinamountsdeterminedbytheinterestandprincipal falingdueonthenextpaymentdate.during195,monthlydeposits werenotmadebecausethedebtservicefundscontainedadequate fundstoservicethebondsthrough195.thedebtservicefund acumulatedbalanceatdecember31,195was$31. TheCity,inMarch194,restructuredthetermsof1989SalesTax RefundingandImprovementBondstotaling$1,845,0.The restructuringloweredtheinterestratesfrom8.25%toarangeof 5.75%to7.50%.Thedebtservicereserverequirementswerealso reducedto$i0,0.theexcesbalanceinthereservefundover $i0,0wasapliedtothebondprincipalbalanceathetimeof restructuring. 2.Monthlydepositsof$18,40forbothinterestandprincipalare requiredtobemadefromthesalestaxspecialrevenue.thedebt servicefundacumulatedbalanceatdecember31,195was$130,89. TheCityisincompliancewithitsdebtcovenantsatDecember31,195 (7)Equity (8) DesianatedFundBalance-CapitalProSects-Thisamounthasben Thisamountincludes contributionsbythecity,propertyownersandfederalgrantorstothe Districtlespreviouslyacumulateddepreciationontherelated improvements.therewerenocontributionsmadetothedistrictduring 195. Individualfundinterfundreceivableandpayablebalancesasof December31,195wereasfolows: GeneralFund SpecialRevenueFund DebtServiceFund CapitalProjects EnterpriseFund-SewerageDistrict 16 Duefrom otherfunds $174, Dueto otherfunds 37,308 43,243 69, $175,207 ~75v207 (Continued)

19 CITYOFHARAHAN,LOUISIANA NotestoGeneralPurposeFinancialStatements (9)PensionPlan TheCityparticipatesintheStateofLouisianaMunicipalPolice Employes'RetirementSystem(thePlan),astatewidedefined contributionretirementplan;theplancoverspoliceemployes. Employescontribute7.5%oftheirsalary(whichincludesState Suplementalpaybutexcludesovertimepay);theCitycontributes9%. TheCity'scontributiontothePlanin195was$41,57.Covered payrolfortheplanamountedto$410,697for3employesofthepolice Department.Totalpayrolexpenseforthepolicedepartmentwas $460,480.Aditionalplaninformationisincludedintheanualreport oftheplan.othercityemployesarenotincludedinanyplan. The"pensionbenefitobligation"isastandardizedisclosuremethodof thepresentvalueofpensionbenefits~adjustedforthefectsof projectedsalaryincreases,estimatedtobepayableinthefutureasa resultofemployeservicetodate.thelatestactuarialvaluationof theplanisasofjune30,195.inthevaluation,thepensionbenefit obligationwasnotdisclosed.thevaluationwasmadeonthe~entryage Normal"costmethod.Underthismethod,theactuarialpresentvalueof projectedbenefitsofeachindividualincludedinthevaluationis alocatedalevelbasisaspercentageofpayrolforeachparticipant betwenentryageandasumedretirementage.theportionofthis actuarialpresentvaluealocatedtothevaluationyeariscalednormal cost.theactuarialpresentvalueofuturebenefitsinexcesofthe actuarialpresentvalueofuturenormalcostiscaledtheactuarial acruedliability.acordingtothisvaluationmethodandcurent asumptions,theplanhasanunfundedactuarialacruedliabilityof $6,618,618asofJune30,195.TheCity'scontributionsrepresentles than1%oftotalcontributionsrequiredofalparticipatingentitiesof theplan. Membershipismandatoryforanyful-timepoliceoficersemployesbya municipalityofthestateoflouisianandengagedinlawenforcement, empoweredtomakearest,providingtheydonothavetopaysocial securityandprovidingtheymethestatutorycriteria.anymemberis eligiblefornormalretirementafterhehasbenamemberofthesystem foroneyear,ifhehas25yearsofcreditableserviceatanyageorhas 20yearsofcreditableserviceandisage50orhas12yearscreditable serviceandisage5.benefitratesarethreandone-thirdpercentof averagefinalcompensation(averagemonthlyearningsduringthehighest 36consecutivemonthsorjoinedmenthsifservicewasinterupted)per numberofyearsofcreditableservicenotoexced10%ofinal salary.amemberiseligibletoreceivedisabilitybenefitsifhewas anactivecontributingmemberoftheretirementsystem,orifheisno longeramemberbuthas20yearscreditableserviceestablishedinthe System,andsufersadisabilitywhichasbencertifiedbyexamination byamemberofthestate-widemedicaldisabilityboard.aservice relatedisabilityrequiresnocertainumberofyearsofcreditable service,however,anon-serviceconectedisabilityrequiresfiveyears ofcreditableservice.thedisabilitybenefitsarecalculatedathre percentofaveragefinalcompensationmultipliedbyearsofcreditable 17 (Continued)

20 NotestoGeneralPurposeFinancialStatements CITYOFHARAHAN,LOUISIANA percentofaveragefinalcompensation.uponreachingtheagerequired service,butshalnotbelesthanfortypercentnormorethansixty foregularetirement,thedisabilitypensionereceivesthegreaterof disabilitybenefitoracruedbenefitearnedtodateofdisability. Uponthedeathofanactivecontributingmember,ordisabilityretire, theplanprovidesforsurvivingspousesandminorchildren.under certainconditionsoutlinedinthestatutes,thebenefitsrangefrom (10) fortytosixtypercentofthemember'saveragefinalcompensation. Ananalysisofcontributedcapitalfolows: Contributed JanuaryI, capital Contributed Propertyowners CityofHarahan Federalgrants $476, ~ditionsdepreciation195 December31, capital 1,985,872 $2,83~081 _~ZQ~76 10,196 42,501 1,943,371 46, ~ TheCity ultimate liabilityandtheamountofdamageareunknownat isadefendantinseveralawsuitsandclaims forwhichthe thistime. 18

21 197P1~hl~e CITYOFHARAHAN,LOUISIANA DebtServiceFunds paymentofprincipaland Bonds. Fund-Toacountfor interestrequirements ofthe197publicimprovement fundsacumulatedforandthe i~3~a~estaxketundlnandimprovementfundto acumulatedforandthepaymentofprincipalandinterest 1989SalesTaxRefundingandImprovementBonds. acountforfunds requirementsofthe 19

22 CITYOFHARAHA3~,LOUISIANA Schedule CombiningBalanceShet-AlDebtServiceFunds December31,195 SalesTax 1989 Cash Asets ~[m~ovemen~~ovementtotal Public 197 Refunding and Acountsreceivable $40,031 10,069 Liabilities-duetotherfund Liabilt~esand~1~ndB~l~ne~ $40r r ,10 174r Fundbalances-reservedfordebt 40,0 3,243 43,243 service $40, r r173 Seacompanyingindependentauditors'report 20

23 CombiningStatementofRevenues,ExpendituresandChanges CITYOFHARAHAN,LOUISIANA Schedule2 infundbalances-aldebtservicefunds YearendedDecen~er31,195 SalesTax 1989 Revenues-interestincome l~rovementimprovement Public 197 Refunding and Expendituresdebtservice: Redemptionofbonds Interestandfiscalcharges 40,0 $ Total Totalexpenditures , ,736 Deficiencyofrevenues Otherfinancingsourcesoperatingtransfersout/in ~ overexpenditures (45,527)(217,59)(263,126) Excesofrevenuesandother Fundbalanceatbeginingofyear financingsourcesoverexpenditures 31 Fundbalanceatendofyear $ , , _~ 130r930 3,232 Seacompanyingindependentauditors'report 21

24 CITYOFHARAH/d~,LOUISIANA Schedule3 ScheduleofCompensationPaidtoAldermen FortheyearendedDecember31,195 MarthaCimo PatrickDonelon CarloFerara PaulJohnston BryanSt.Cyr $31,026 Seacompanyingindependentauditors'report. 2

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26 CITYOFHARAHAN YearendedDecember31,195 SingleAuditReports TableofContents IndependentAuditors'ReportonSuplementaryInformationSchedule ScheduleofFederalFinancialAsistance offederalfinancialasistance NotestoScheduleofFederalFinancialAssistance IndependentAuditors'ReportonComplianceatheGeneralPurpose IndependentAuditors'ReportontheIntemalControlStructure FinancialStatementLevel IndependentAuditors'ReportonCompliancewithGeneralRequirements athegeneralpurposefinancialstatementlevel IndependentAuditors'ReportonInternalControlStructureUsedin lndependemauditors'reportoncompliancewithspecific AdministeringFederalFinancialAsistancePrograrns RequirementsAplicabletoNonmajorFederalFinancialAsistance ScheduleofFindingsandQuestionedCosts ProgramsTransactions Page

27 KPMGPeatMarwickLP Suite350OneShelSquare NewOrleans.LA IndependentAuditors'ReportonSuplementary MembersoftheBoardofAldermen CityofHarahan,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityofHarahan,Louisiana(the City)asofandfortheyearendedDecember31,195,andhaveisuedoureporthereondated April29,196.ThesegeneralpurposefinancialstatementsaretheresponsibilityoftheCity's management.ouresponsibilityistoexpresanopiniononthesegeneralpurposefinancial statementsbasedonouraudit. WeconductedourauditinacordancewithgeneralyaceptedauditingstandardsandGovement Audifin~Standards,isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandards requirethatweplanandperformtheauditobtainreasonableasuranceaboutwhetherthe financialstatementsarefreofmaterialmistatement.anauditincludesexamining,onatestbasis, evidencesuportingritemountsandisclosuresinthegeneralpurposefmaucialstatements.an auditalsoincludesasesingtheacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralfinancialstatementpresentation.webelievethatour auditprovidesareasonablebasisforouropinion. Ourauditwasmadeforthepurposeoforminganopiniononthegeneralpurposefinancial statementsofthecity,takenasawhole.theacompanyingscheduleoffederalfinancial Asistanceispresentedforpurposesofaditionalanalysisandisnotarequiredpartofthegeneral purt~sefinancialstatements.theinformationinthatschedulehasbensubjectedtotheauditing proceduresapliedintheauditofthegeneralpurposefinancialstatementsand,inouropinion,is fairlystatedinalmaterialrespectsinrelationtothegeneralpurposefinancialstatementstakenasa whole. April29,196

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29 CITYOFHARAHAN NotestoScheduleofFederalFinancialAsistance TheacompanyingScheduleofFederalFinancialAsistanceispresentedusingthemodified acrualbasisofacounting,whichisdescribedinnote1tothecity'sgeneralpurpose financialstatementsfortheyearendeddecember31,195. FederalfinancialasistancerevenuesarereportedintheCityofHarahan'sgeneralpurpose financialstatementsasfolows: Intergovementalrevenue Lesnon-Federalrevenue $353,36 4 TotalFederalfinancialasistance $50, ,767 Amountsr~.1~onedintheScheduleofFederalFinancialAssistanceagrewiththeamounts reportedintherelatedfederalfinancialreports,exceptfortheamountsinreportsubmitedas ofadatesubsequentodecember31,195.

30 KPMGPeatMarwickLP Suite350OnoShelSquare NewOrleans,LA MembersoftheBoardofAldermen CityofHaraban,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityofHarahan,Louisiana(the City),asofandfortheyearendedDecember31,195,andhaveisuedoureporthereondated April29,196. WeconductedourauditinacordancewithgeneralyaceptedauditingstandardsandGovernment AuditingStandards,isuedbytheComptrolerGeneraloftheUiaitedStates.Thosestandards requirethatweplanandperformtheauditobtainreasonableasuranceaboutwhetherthe financialstatementsarefreofmaterialmistatement. Compliancewithlaws,regulations,contracts,andgrantsaplicabletotheCityistheresponsibility ofthecity'smanagement.aspartofobtainingreasonableasuranceaboutwhetherthefinancial statementsarefreofmaterialmistatement,weperformedtestsofthecity'scompliancewith certainprovisionsoflaws,regulations,contracts,andgrants.however,theobjectiveofouraudit ofthegeneralpurposefinancialstatementswasnotoprovideanopiniononoveralcompliance withsuchprovisions.acordingly,wedonotexpresuchanopinion. Theresultsofourtestsdisclosedthefolowinginstancesofnoncompliancesthatarerequiredtobe reportedhereinundergovernmentauditingstandard_s. AmendmentstotheGeneralFundbudget,whicharerequiredwhenexpendituresandother usesexcedbudgetedamountsby5%ormore,werenotadoptedbytheboardin195.in adition,aprovalbytheboardofaldermenwasnotobtainedforexpendituresinexces ofapropriatedepartment~budgets. NobudgetfortheSpecialRevenueFund,whichisrequiredbylaw,wasadopteduring Thisreportisintendedfortheinformationofmanagement,theCity,StateofLouisianaLegislative 195. Auditor'sOfice,andtheFederalEmergencyManagementAgency.However,thisreportisa materofpublicrecordanditsdistributionisnotlimited. April29,196

31 KPMGPeatMarwickLP Suite350OneShelSquare NewOrleans,IA IndependentAuditors'ReportontheInternalControlStructure MembersoftheBoardofAldermen CityofHarahan,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityofHarahan,Louisiana(the City),asofandfortheyearendedDecember31,195,andhaveisuedoureporthereondated April29,196.

32 Thisreportisintendedfortheinformationofmanagement,theCity,StateofLouisianaLegislative Auditor'sOfice,andtheFederalEmergencyManagementAgency.HoweveLli"fisieportisa materofpublicrecordanditsdistributionisnotlimited. April29,196

33 KPMGPeatMarwickLP Suite350OneShelSquare NewOrleans,LA IndependentAuditors'ReportonCompliancewith GeneralRequirement~ MembersoftheBoardofAldermen CityofHarahan,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityofHarahan,Louisiana(the City),asofandfortheyearendedDecember31,195,andhaveisuedoureporthereondated April29,196. WehaveapliedprocedurestotestheCity'scompliancewiththefolowingeneralrequirements aplicabletoitsfederalfinancialasistanceprograms,whichareidentifiedinthescheduleof FederalFinancialAsistancefortheyearendedDecx~mber31,195:politicalactivity,civ~rights, cashmanagemem,federalfinancialreports,alowablecosts/costprinciples,drug-freworkplace act,andadministrativerequirements. OurprocedureswerelimitedtotheaplicableproceduresdescribedintheOficeofManagement andbudget'scompliancesuplementforsingleauditsofstateandlocalgovernments.our proceduresweresubstantialylesinscopethananaudit,theobjectiveofwhichisthexpresion ofanopiniononthecity'scompliancewiththerequirementslistedhatheprecedingparagraph. Acordingly,wedonotexpresuchanopinion. Withrespectotheitemstested,theresultsofthoseproceduresdisclosednomaterialinstancesof noncompliancewiththerequirementslistedinthesecondparagraphofthisreport.withrespecto theitemsnotested,nothingcametouratentionthatcausedustobelievethathecityhadnot complied,inalmaterialrespects,withthoserequirements.however,theresultsofour proceduresdisclosedanimaterialinstanceofnoncompliancewiththoserequirements,whichis describedintheacompanyingscheduleoffindingsandquestionedcosts. Thisreportisintendedfortheinformationofmanagemem,theCity,StateofLouisianaLegislative Auditor'sOfice,andtheFederalEmergencyManagementAgency.However,thisreportisa materofpublicrecordanditsdistributionisnotlimited. April29,196

34 KPMGPeatMarwickLP Suite350OneShelSquare NewOrleans.LA IndependentAuditors'ReportonInternalControlStructme usedinadministeringthefederalfinancial AsistancePrograms MembersoftheBoardofAldermen CityofHarahan,Louisiana: WehaveauditedthegeneralpurposefinancialstatementsoftheCityofHarahan,Louisiana(the City),asofandfortheyearendedDecember31,195,andhaveisuedoureporthereondated April29,196.

35 Forthepurposeofthisreport,wehaveclasifiedthesignificantinternalcontrolstructurepolicies andproceduresusedinadministeringthefederalfinai~cialasistanceprograminthefolowing categories: -Purchases/disbursements -Payrol Generalrequirements: -Politicalactivity -Civilrights -Cashmanagement -Federalfinancialreports -Alowablecosts/costprinciples -Drug-freworkplace Specificrequirements: -Administrativerequitenaents -Typesofservicesalowedorunalowed -Matching -Reporting ClaimsforReimbursements -SpecialRequirements Foraloftheinternalcontrolstructurecategorieslistedabove,weobtainedanunderstandingofthe designofrelevantpoliciesandproceduresandeterminedwhethertheyhavebenplacedin operation,andweasesedcontrolrisk. financialasistance underthefederal

36 Thisreportisintendedfortheinformationofmanagement,theCity,StateofLouisianaLegislative Auditor'sOfice,andtheFederalEmergencyManagementAgency.However,thisreportisa materofpublicrecordanditsdistributionisnotlhrdted. April29,196 10

37 KPMGPeatMarwickLP Suite350OneShelSquare NewOrleans,LA IndependentAuditors'ReportonCompliance orfederalfinancialasistanceprogramtran withspecificrequirementsaplicableto TheMembersofthe Harahan,Louisiana: BoardofAldermen WehaveauditedthegeneralpurposefinancialstatenaentsoftheCityofHarahan,Louisiana(theCity), asofandfortheyearendeddecember31,195,andhaveisuedoureporthereondatedapril29, 196. InconectionwithourauditofthegeneralpurposefmancialstatementsoftheCity,andwithour considerationofthecity'scontrolstructureusedtoadministerfederalfinancialasistanceprograms, asrequiredbyoficeofmanagementandbudgetcirculara-128,auditsofstateandlocal Governments,weselectedcertaintransactionsaplicabletocertainnoranajorfederalfinancial asistanceprogramsfortheyearendeddecember31,195.asrequiredbyombcirculara-128,we haveperformedauditingprocedurestotestcompliancewiththerequirementsgoverningtypesof servicesalowedortmalowedthatareatrplicabletothosetransactions.ourprocedureswere substantialylesioscopethananaudit,theobjectiveofwhichisthexpresionofanopịniononthe City'scompliancewiththeserequirements.Acordingly,wedonotexpresuchanopinion. Withrespectotheitemstested,theresultsofthoseproceduresdisclosednomaterialinstancesof noncompliancewiththerequirements~ tested,nothingcametouratentionthatcausedustobelievethathecityhadnotcomplied,inal materialrespects,withthoserequirements. intheprecedingparagraph.withrespectoitemsnot Thisreportisintendedfortheinformationofmanagement,theCity,StateofLouisianaLegislative Auditor'sOfice,andtheFederalEmergencyManagementAgency.However,thisreportisa materofpublicrecordanditsdistributionisnotlimited. /April29,196 1

38 CYFYOFHARAHAN ScheduleofFindingsandQuestionedCosts Questioned FederalEmergency OficeofManagementandBudgetCircularA- $-0- costs ManagementAgency-128,GeneralRequirements,matesthatal DisasterAsistancerecipientsreceivingrantsfromanyfederal agencymustcertifythatheywilprovideadrugfreworkplaceacordingtothedrug-fre WorkplaceAct. Basedonoureviewandiscusionwiththe cliem,cityofharahandoesnothaveadrug-fre workplacepolicy. Managementisawareofitsnoncompliance relatingtoadrug-freworkplacepolicyand intendstoinitiateapolicyadheringtothedrug- FreWorkplaceAct. 12

39 Suite350OneSholSquare NewOrleans,LA i~7;"[~[) 5i~i.-' 52 April29,196 TheBoardofAldermen CityofHarahan,Louisiana WehaveauditedthegeneralpurposefinancialstatementsofCityofHarahan, LouisianasofandfortheyearendedDecember31,195,andhaveisueda reportthereondatedapril29,196.undergeneralyaceptedauditing standardsandasamemberfirmofthe~nericaninstituteofcertifiedpublic AcountantsDivisionofCPAFirms,weareprovidingyouwiththeatached informationrelatedtotheconductofouraudit. ThisinformationisintendedsolelyfortheuseoftheBoardofAldermenand themayorandshouldnotbeusedforanyotherpurpose. Verytrulyours,

40 CITYOFHAP~AH~/~,LOUISI2~NA DECEMBER31,195 OurResponsibilityUnderGeneralyAceptedAuditingStandards Ouresponsibilityundergeneralyaceptedauditingstandardsistoexpres anopiniononthegeneralpurposefinancialstatementsofthecityofharahan, Louisiana(City)asofandfortheyearendedDecember31,195basedonour audit.incaryingouthisresponsibility,weasesedtheriskthathe financialstatementsmaycontainan~aterialmistatement,eitherintentional orunintentional,andesignedandconductedourauditoprovidereasonable, notabsolute,asuranceofdetectingmistatementsthatarematerialtothe financialstatements.inadition,weconsideredtheinternalcontrol structureofthecitytogainabasicunderstandingoftheacountingsystem inordertodesignanefectiveandeficientauditaproach,althoughnotfor thepurposeofprovidingspecificasuranceontheinternalcontrolstructure. SignificantAcountingPolicies ThesignificantacountingpoliciesusedbytheCityaredescribedinthe "SumaryofSignificantAcountingPolicies"notetothefinancialstatements. WenotednotransactionsenteredintobytheCityduringtheperiodthatwere bothsignificantandunusual,andofwhich,underprofesionalstandards,we arerequiredtoinformyou,ortransactionsforwhichthereisalackof authoritativeguidanceorconsensus. ManagementJudgmentsandAcountingEstimates Acountingestimatesareanintegralpartofthefinancialstatementsprepared bymanagementandarebaseduponmanagement'scurentjudgments.those judgmentsarenormalybasedonknowledgeandexperienceaboutpastand curenteventsandasumptionsaboutfutureevents.certainacounting estin~tesareparticularlysensitivebecauseofthesignificanceofthe financialstatementsandbecauseoftheposibilitythatfutureevents afectingthemaydifermarkedlyfromnuanagement'scurentjudgments.there werenoareaswhichrequiredsignificantmanagementjudgment. SignificantAuditAdjustments Weproposednosignificantauditadjustmentstothefinancialstatementsthat could,inourjudgment,eitherindividualyorintheagregate,havea significantefectonthecity'sfinancialreportingproces,exceptthose areasinwhichthecitynormalyexpectsustorecordadjustments. DisagrementsWithManagement Therewerenodisagrementswithmanagementonfinancialacountingand reportingmaterswhich,ifnotsatisfactorilyresolved,wouldhavecauseda modificationofoureportonthecity's195financialstatements. ConsultationWithOtherAcountants Tothebestofourknowledge,managementhasnotconsultedwithorobtainedan opinion,writenororal,fromotherindependentacountantsduringthepast yearwhichweresubjectotherequirementsofstatementonauditingstandards No.50,"ReportingontheAplicationofAcountingPrinciples."

41 MajorIsuesDiscusedWithManagementPriortoRetention Therehavebennomajorisuesdiscusedwithmanagementpriortoour retentionasyourauditors. DificultiesEncounteredinPerfo~ningtheAudit Wencounterednodificulties~ndealingwithmanagementinperformingour audit.