WilhSuplementalInformationSchedules

Transcription

1 GeneralPurposeFinancialStatements Forest,Louisiana WithIndependentAuditors'Report WilhSuplementalInformationSchedules AsofandfortheYearEnded December31,202

2 Forest,Louisiana GeneralPurposeFinancialStatements WithIndependentAuditors'Report AsofandfortheYearEnded WithSuplementalInformationSchedules December31,202 IndependentAuditors'Report CONTENTS StatementPageNo. 3 GeneralPurposeFinancialStatements: CombinedBalanceShe~-AlFundTypes andacountgroups A GovernmentalFundType-GeneralFund StatementofRevenues,Expenditures andchangesinfundbalance B StatementofRevenues,Expenditures, andchangesinfundbalance-budget (CashBasis)andActual C ProprietaryFundType-WaterEnterpriseFund StatementofRevenues,Expenses, andchangesinretainedearnings D 10 NotestotheFinancialStatements StatementofCashFlows E 1 SuplementalInformationSchedules: SchedulePageNo. 12 ScheduleofWaterRates ScheduleofInsuranceCoverage 23 24

3 Contents,December31,202 Forest,Louisiana CONTENTS(CONTD.) SuplementalInformationSchedules(Contd.): ProposedOperatingBudget-FortheYearEnding December31,203(Unaudited) IndependentAuditors'ReportRequired ScheduleofCompensationPaidAldermen bygovernmentauditingstandards ReportonComplianceandInternalControl overfinancialreporting ScheduleofFindingsandQuestionedCosts SumaryScheduleofPriorAuditFindings Management'sResponse SchedulePageNo

4 LITLE&ASOCIATES CERTIFIEDPUBLICACOUNTANTS IndependentAuditors'Report Wm.TODLITLE,CPA JAMESC.BOND,CPA CHARLESR.MARCHBANKS,JR.,CPA MAYORANDBOARD OFALDERMEN Forest,Louisiana WehaveauditedthegeneralpurposefinancialstatementsoftheVilageofForestasofDecember31, 202,andfortheyearthenended,aslistedinthetableofcontents.Thesegeneralpurposefinancial statementsaretheresponsibilityofthevilageofforest'smanagement.ouresponsibilityistoexpres anopiniononthesegeneralpurposefinancialstatementsbasedonouraudit. WeconductedourauditinacordancewithU.S.generalyaceptedauditingstandardsandGovernment AuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethat weplanandperformtheauditobtainreasonableasuranceaboutwhetherthegeneralpurposef'mancial statementsarefreofmaterialmistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthegeneralpurposefinancialstatements.anauditalsoincludes asesingtheacountingprinciplesusedandsignificantestimatesmadebymanagement,aswelas evaluatingtheoveralfinancialstatementpresentation.webelievethatourauditprovidesareasonable basisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inalmaterial respects,thefinancialpositionofthevilageofforestasofdecember31,202,andtheresultsof operationsandcashflowsofitsproprietaryfundfortheyearthenended,inconformitywithu.s. generalyaceptedacountingprinciples. takenasawhole.thesuplementalinformationscheduleslistedinthetableofcontentsarepresented Ourauditwasmadeforthepurposeoforminganopiniononthegeneralpurposefinancialstatements forthepurposeofaditionalanalysisandarenotarequiredpartofthegeneralpurposefinancial statementsofthevilageofforest.exceptforthoseschedulesmarkedunaudited,suchinformationhas bensubjectedtotheauditingproceduresapliedintheauditofthegeneralpurposefinancialstatements and,inouropinion,isfairlypresentedinalmaterialrespectsinrelationtothegeneralpurposefinancial statementstakenasawhole. PHONE(318) FAX(318)36% NORTH31rSTRET~MONROE,LA71201 MAILINGADRES:P.O.BOX4058~MONROE,LA

5 MAYORANDBOARD OFALDERMEN IndependentAuditors'Report Forest,Louisiana December InacordancewithGovernmentAuditingStandards,wehavealsoisuedareportdatedMay2,203on thevilageofforest'scompliancewithlaws,regulations,andcontracts,andourconsiderationofthe agency'sinternalcontroloverfinancialreporting.thatreportisanintegralpartofanauditperformed inacordancewithgovernmentauditingstandardsandshouldbereadinconjunctionwiththisreportin consideringtheresultsofouraudit. Monroe,Louisiana May2,203-4-

6 GENERALPURPOSEFINANCIALSTATEMENTS (OVERVIEW) -5-

7 Forest,Louisiana ALFUNDTYPESANDACOUNTGROUPS CombinedBalanceShet,December31,202 ASETS Curentasets: Cash Acountsreceivable Totalcurentasets Restrictedasets-cashandequivalents Watersystemplantandequipment (netofacumulatedepreciation) Land,buildings,andequipment TOTALASETS LIABILITIESANDFUNDEQUITY Liabilities: Curentliabilities: Acountspayable Customermeterdeposits Payablefromrestrictedasetsacruedinterest Revemiebondspayable TotalLiabilities FundEquity: Investmentingeneralfixedasets Contributedcapital(netofacumulatedepreciationonfixedasets acquiredwithfederalgrant) Retainedearnings: Reservedfordebtservice Reservedforcontingencies (Continued) PROPRIETARY GOVERNMENTALFUNDTYPE- FUNDTYPE- GENERAL FUND $9, WATER ENTERPRISE FUND $10,710 10,421 21, , ,450 ACOUNT GROUP- GENERAL FIXED ASETS NONE StatementA TOTAL (MEMORANDUM ONLY) $19,769 16,025 35, , , $14,63$539,268$57,532 $61,463 $ $2,431 23, ,860 37,015 5,147 NONE $2,597 23, $57,532 57, ,015 5,147

8 StatementA ALFUNDTYPESANDACOUNTGROUPS Forest,Louisiana CombinedBalanceShet,December31,202 GOVERNMENTALFUNDTYPE- FUNI)TYPE-WATER PROPRIETARY GENERALENTERPRISE FundEquity:(Contd.) FUND FUND ACOUNT GROUP- GENERAL FIXED ASETS (MEMORANDUM TOTAL ONL~ Retainedearnings(contd.): unreserved-undesignated Fundbalance-unreservedundesignated Totalretainedearnings NONE NONE $20,363 TotalFundEquity $14, $57, TOTALIABILITIES ANDFUNDEQUITY $14,63$539,268$57,532 $61,463 (Concluded) Theacompanyingnotesareanintegralpartofthistatement 7

9 GOVERNMENTALFUNDTYPE-GENERALFUND VILAGEOFORE.ST Forest,Louisiana StatementofRevenues,Expenditures, FortheYearEndedDecember31,202 andchangesinfundbalances REVENUES Tax,franchise Ocupationalicenses Intergovernmental,stategrant Useofmoneyandproperty-interestearnings Otherevenue EXPENDITURES Totalrevenues Generalgovernment-curent: Personalservicesandrelatedbenefits Operatingservices Materialsandsuplies Publicsafety Debtservice Capitaloutlay EXCESOFREVENUESOVEREXPENDITURES Totalexpenditures OTHERFINANCINGSOURCE ProcedsfromLoan EXCESOFREVENUESANDOTHERFINANCINGSOURCE FUNDBALANCEATBEGININGOFYEAR OVEREXPENDITURES FUNDBALANCEATENDOFYEAR Theacompanyingnotesareanintegralpartofthistatement -8- StatementB $4,404 15,015 6,026 30,835 5,390 3,870 16,135 6, ,710 2~60 3,317 (2,482) 2,60

10 Forest,Louisiana GOVERNMENTALFUNDTYPE GENERALFUND StalementofRevenues,Expenditures,and ChangesinFundBalance-Budget (CashBasis)andActual REVENUES Taxes; Franchise Ocupationalicenses Intergovernmental-Stategrant Useofmoneyandproperty-interestearnings Otherevenue Totalrevenues EXPENDITURES Generalgovernment-curent: Personalservicesandrelatedbenefits Operatingservices Materialandsuplies Miscelaneous PublicSafety DebtService Capitaloutlay Totalexpenditures EXCES(Deficiency)OFREVENUESOVER EXPENDITURES OTHERFINANCINGSOURCES Procedsfromloan EXCES(Deficiency)OFREVENUESANDOTHER FINANCINGSOURCEOVEREXPENDITURES FUNDBALANCEATBEGININGOFYEAR FUNDBALANCEATENDOFYEAR Theacompanyingnotesareanintegralpartofthistatement $3,0 6,0 15,0 30 4,0 28,30 3,960 5, ,10 15, $4,1 5,963 1,0 15 5, ,870 6, ,052 2,60 16, (6,750) 2,60 46(4,150) 8,013~210 $8,092$9,060 StatementC VARIANCE FAVORABLE (UNFAVORABLE) $1,1 (37) (4,0) (285) (76) (294) 392 (1,952) (2,60) (350) (5,480) (6,796) 2.60 (4,196) 5.210

11 OPERATINGREVENUES Watersales OPERATINGEXPENSES Salaries Payroltaxes Administrative Salestax Utilities Repairsandmaintenance Insurance Materialsandsuplies Telephone Depreciation TotalOperatingExpenses FOREST,Louisiana PROPRIETARYFUNDTYPE- WATERENTERPRISEFUND StatementofRevenues,Expenses, andchangesinretainedearnings FortheYearEndedDecember31,202 OPERATINGINCOME(LOS) NON-OPERATINGREVENUES(Expenses) Interestincome Interestexpense TotalNon-OperatingRevenues(expenses) NET(LOS) OTHERFINANCINGSOURCES Adjustmentfordepreciationonfixedasetsacqniredwithfederalgrants TOTALNET(LOS)ANDOTHERFINANCINGSOURCES(USES) RETAINEDEARNINGSATBEGININGOFYEAR RETAINEDEINGSATENDOFYEAR Theacompanyingnotesareanintegralpartofthistatement -10- St~eme~D 38,623 2,946 8,84 3,827 10,695 13,426 8,649 6,18 1,79 21,480 16,407 (21,807) (16,312) 258,837

12 StatementE PROPRIETARYFUNDTYPE- FOREST,Louisiana WATERENTERPR/SEFUND FortheYearEndedDecember31,202 StatementofCashFlows CASHFLOWSFROMOPERATINGACTIVITIES AdjustmentstoReconcileOperatingIncometoNetCash ProvidedbyOperatingActivities: Depreciation Increaseinacountsreceivable 21,480 Decreaseinacountspayable Decreaseinacruedinterestpayable (1,751) (269) Increaseinmeterdeposits Totaladjustments CASHFLOWSFROMCAPITALANDRELATEDFINANCINGACTIVITIES Netcashprovidedbyoperatingactivities ,395 (47) Decreaseinbondspayable Interestexpense Acquisitionofasets (3,472) Totalcashflowsfromcapitalandrelatedfinancingactivities (7,073) CASHFLOWSFROMINVESTINGACTIVITIES (1,201~ (656) Interestearnings NETDECREASEINCASHANDCASHEQUIVALENTS CASHANDCASHEQUIVALENTSATBEGININGOFYEAR (4,127) 1.39 CASHANDCASHEQUIVALENTSATENDOFYEAR Theacompanyingnotesareanintegralpartofthistatement -1-

13 Forest,Louisiana AsofandFortheYearEndedDecember31,202 NotestotheFinancialStatements 1.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES vilageoperatesunderamayor-boardofaldenenformofgovermnent.themayorandaldermenserve TheVilageofForestwasincorporatedundertheprovisionsoftheLawrasonActin196.The lbur-yeartermswhichexpireondecember31,204. A.REPORTINGENTITY Forestisconsideredaseparatef'mancialreportingentity.Thefinancialreportingentity Asthegoverningauthorityofthevilage,foreportingpurposes,theVilageof consistsof(a)theprimarygovermnent(thevilage),(b)organizationsforwhichthe primarygovernmentisfinancialyacountable,and(c)otherorganizationsforwhichthe natureandsignificanceoftheirelationshipwiththeprimarygovernmentaresuchthat exclusionwouldcausethereportingentity'sfinancialstatementstobemisleadingor incomplete. criteriafordetemlhfingwhichcomponentunitshouldbeconsideredpartofthevilage GovernmentalAcountingStandardsBoard(GASB)StatementNo.14established offorestforfinancialreportingpurposes.thebasicriterionforincludingapotential componentunitwithinthereportingentityisfinancialacountability.thegasbhaset ibrthcriteriatobeconsideredindeterminingfinancialacountability.thiscriteria includes: 1.Apointingavotingmajorityofanorganization'sgoverningbody,and a.theabilityofthevilagetoimposeitswilonthatorganizationand/or b.thepotentialfortheorganizationtoprovidespecificfinancialbenefits torimposespecificfinancialburdensonthevilage. 2.Organizationsforwhichthevilagedoesnotapointavotingmajoritybutare fiscalydependentonthevilage. Organizationsforwhichthereportingentityfinancialstatementswouldbe misleadingifdataoftheorganizationisnotincludedbecauseofthenatureor significanceoftherelationship.

14 NotestotheFinancialStatements(Continued) Forest,Louisiana Basedonthepreviouscriteria,thevilagehasdeterminedthatherearenocomponentunitsthat arepartofthereportingentity. B.FUNDACOUNTING resultsofitsoperations.fundacountingisdesignedtodemonstratelegalcomplianceand Thevilageusesfundsandacountgroupstoreportonitsfinancialpositionandthe toaidfinancialmanagementbysegregatingtransactionsrelatedtocertaingovernment functionsoractivities. comprisesitsasets,liabilities,fundequity,revenues,andexpenditures.anacount Afundisaseparateacountingentitywithaself-balancingsetofacountsthat group,ontheotherhand,isafinancialreportingdevicedesignedtoprovideacountability forcertainasetsandliabilities(generalfixedasetsandgeneralong-termdebt)thatare notrecordedinthe"funds"becausetheydonotdirectlyafectnetexpendableavailable financialresources.theyareconcernedonlywiththemeasurementofinancialposition, notwiththemeasurementofresultsofoperations. Eachcategory,inturn,isdividedintoseparate"fundtypes".Governmentalfundsare Fundsareclasifiedintothrecategories;governmental,proprietary,andfiduciary. usedtoacountforagovernment'sgeneralactivities,wherethefocusofatentionison theprovidingofservicestothepublicasoposedtoproprietaryfundswherethefocusof atentionisonrecoveringthecostofprovidingservicestothepublicorotheragencies throughservicechargesoruserfes.fiduciaryfundsareusedtoacountforasetsheld forothers.thevilage'scurentoperationsrequiretheuseofgovernmentaland proprietaryfundtypesdescribedasfolows: GovernmentalFunds: GeneralFund acountsforalfinancialresources,excepthoserequiredtobeacounted forinotherfunds. TheGeneralFundisthegeneraloperatingfundofthevilage.It ProprietaryFundType-WaterEnterpriseFund thevilage'swatersystem.theoperationsarefinancedandoperatedina TheWaterEnterpriseFundisusedtoacountfortheoperationsof

15 NotestotheFinancialStatements(Continued) Forest,Louisiana governingbodyisthathecost(expenses,includingdepreciation)of manersimilartoprivatebusinesenterprises,wheretheintentofthe providingodsorservicestothegeneralpubliconacontinuingbasisbe financedorecoveredprimarilythroughusercharges. C.FIXEDASETSANDLONG-TERMDEBT them.instead,capitalacquisitionandconstructionarereflectedasexpenditures(capital Generalfixedasetsarenotcapitalizedinthefundsusedtoacquireorconstruct outlay)ingovernmentalfundsandtherelatedasetsarereportedinthegeneralfixedasets acountgroup.alpurchasedfixedasetsarevaluedatactualcostwherehistorical recordsareavailable.aproximately87percentofthegeneralfixedasetsarevaluedat actualhistoricalcost,whiletheremaining13percentarevaluedatestimatedcost,based ontheactualcostoflikeitems.nodepreciationhasbenprovidedongeneralfixed asets.therearenogeneralong-termobligationsatdecember31,202. asetsormaterialyextendtheirusefulivesarenotcapitalizedbutareonlyrecognizedas Thecostofnormalmaintenanceandrepairsthatdonotadtothevalueofixed anormalcurentexpenditureofthegovernmentalfunds.publicdomainorinfrastrncture generalfixedasetsconsistingofroads,sidewalks,bridges,parkinglots,andrainage systemsarenotcapitalized,astheseasetsareimovableandofvalueonlytothevilage. balanceshetofthefund.depreciationofalexhaustiblefixedasetsusedbythe Thefixedasetsusedintheproprietaryfundtypeoperationsareincludedonthe proprietaryfundtypeoperationsischargedasanexpenseagainstoperations.depreciation iscomputedusingthestraight-linemethodoverthestimatedusefulivesasfolows: Watersystem Equipment 40years Long-termliabilitiesexpectedtobefinancedfromenterprisefundoperationsare 5years acountedforinthenterprisefund. D.BASISOFACOUNTING measurementfocus.algovernmentalfundsareacountedforusingacurentfinancial Thefinancialandreportingtreatmentapliedtoafundisdeterminedbyits resourcesmeasurementfocus.withthismeasurementfocus,onlycurentasetsand -14-

16 NotestotheFinancialStatements(Continued) Forest,Louisiana curentliabilitiesgeneralyareincludedonthebalanceshet.operatingstatementsfor thesefundspresentincreases(i.e.,revenuesandotherfinancingsources)andecreases (i.e.,expendituresandotherfinancinguses)inetcurentasets. fundtypes.underthemodifiedacrualbasisofaceounting,revenuesarerecognizedwhen Themodifiedacrualbasisofacountingisusedforeportingalgovernmental meanscolectiblewithinthecurentperiodorsonenoughthereaftertobeusedtopay susceptibletoacrual(i.e.,whentheybecomebothmeasurableandavailable). liabilitiesofthecurentperiod.thevilageusesthefolowingpracticesinrecognizingand "Measurable"meanstheamountofthetransactioncanbedeterminedand"available" reportingrevenuesandexpenditures: Revenues thevi/ageisentitledtothefunds. Franchisetaxesandintergovernmentalrevenuesarerecordedwhen benearnedandthea3nountisdeterminable. Interestincomeonbankdepositsisrecordedwhentheinteresthas bythevilage. Substantialyalotherevenuesarerecordedwhentheyarereceived susceptibletoacrual. Basedontheabovecriteria,franchisetaxeshavebentreatedas Expenditures basisofacountingwhentherelatedfundliabilityisincured. Expendituresaregeneml/yrecoglfizedunderthemodifiedacrual ProprietaryFundType-WaterEnterpriseFund ofacounting.revenuesarerecognizedwhentheyarearned,and TheWaterEnterpriseFundisacountedlbrusingtheacrualbasis expensesarerecognizedwhentheyareincured.

17 NotestotheFinancialStatements(Continued) Forest,Louisiana E.BUDGETPRACTICES mayorpriortodecember31ofeachyearandismadeavailableforpublicinspectionat ApreliminarybudgetforthensuingyearispreparedfortheGeneralFundbythe leastfiftendayspriortothebeginingofeachfiscalyeaṛthebudgetisestablishedand controledbytheboardofaldermenathefunctionalevelofexpenditure.encumbrance acountingisnotusedbythevilage.apropriationslapseatyearendandmustbe reapropriatedforthefolowingyeartobexpended.alchangesinthebudgetmustbe aprovedbytheboardofaldermen. thegeneralfund. FortheyearendedDecember31,202,thevilageadoptedacashbasisbudgetfor statementsincludestheoriginalbudgetandalsubsequentamendments.thefolowing Thebudgetcomparisonstatementincludedintheacompanyingfinancial reconcilesthexcesofrevenuesandothersourceoverexpendituresashownon budgetarycomparisonstatementc(budgetbasis)tothesameamountshownonstatement B(GAPbasis): Excesofrevenues-(budgetbasis) Adjustments: Receivables ($4,150) Excesofrevenuesandothersource Payables 3, overexpenditures-(gapbasis) F.CASHANDCASHEQUIVALENTS underthelawsofthestateoflouisiana,thelawsofanyotherstateintheunion,orthe Understatelaw,thevilagemaydepositfundswithinafiscalagentbankorganized lawsoftheunitedstates.thevilagemayinvestincertificatesandtimedepositsofstate banksorganizedunderlouisianalawandnationalbankshavingprincipaloficesin Louisiana. folowsatdecember31,202,thevilagehascash(bokbalances)totaling$123,456,as 16-

18 NotestotheFinancialStatements(Continued) Forest,Louisiana Demandeposits Timedeposits $84,431 Total thesedeposits,ortheresultingbankbalances,mustbesecuredbyfederaldepositinsurance Thesedepositsarestatedatcost,whichaproximatesmarket.Understatelaw, orthepledgeofsecuritiesownedbythefiscalagentbank.depositbalances(bank balances)atdecember31,202,total$124,61andarefulysecuredbyfederaldeposit insuranceandpledgedsecurities. liquidinvestmentswithamaturitydateofthremonthsorleswhenpurchased. Forpurposesofthestatementofcashflows,cashequivalentsincludealhighly G.VACATIONANDSICKLEAVE thereisnoliabilityforcompensatedabsences. TheVilageofForesthasnotadoptedvacationandsickleavepolicies;therefore H.RISKMANAGEMENT andestructionofasets;andinjuriestoemployes.tohandlesuchriskoflos,thefire Thevilageisexposedtovariousriskoflosrelatedtotorts;theftof,damageto, districtmaintainsacomercialinsurancepolicycoveringproperty,employeliability,and publicoficialsliability.noclaimswerepaidonanyofthepoliciesduringthepasthre yearswhichexcededthepolicies'coverageamounts.therewerenosignificant reductionsininsurancecoverageduringtheyearendeddecember31,202. I.TOTALCOLUMNONTHE COMBINEDSTATEMENTS (overview)toindicatethatheyarepresentedonlytofacilitatefinancialanalysis.datain TotalcolumnsonthecombinedstatementsarecaptionedMemorandumOnly thesecolumnsdonotpresentfinancialpositionoresultsofoperationsinconlbrmitywith generalyaceptedacountingprinciples.neitherisuchdatacomparabletoa consolidation.interfundeliminationshavenotbenmadeintheagregationofthisdata. 17

19 NotestotheFinancialStatements(Continued) Forest,Louisiana RECEIVABLES ThefolowingisasumaryofreceivablesatDecember31,202 GeneralEnterprise Water Taxes: FundFund Total Acounts Franchise $1,196 $1,196 Grants Other 4,0 Total 408 $10,42110,421 4,0 408 FIXEDASETS ThefolowingpresentschangesingeneralfixedasetsfortheyearendedDecember31,202 Land Improvements BNance,January1,202 Buildings OtherThan Aditions DelNions $23,053 BuildingsEquipmentTotal 1.0 $102$18,242$41, ,42416,135 Balance,December31,202 $34,053 $813$2,6$57,532 NONE folows Asumaryofproprietaryfundtypeproperty,plant,andequipmentatDecember31,202 Watersystem Equipment Total 28,691 $398, $637,58 NetBok Value 16,063

20 NotestotheFinancialStatements(Continued) Forest,Louisiana PENSIONPLAN employecontributionswitheldat7.65percentofgrosalary,thevilagecontributesanequalamount tothesocialsecuritysystem.fortheyearendeddecember31,202,employercontributionswere ThemployesofthevilagearemembersoftheSocialSecuritySystem.Inaditiontothe $2,95.Totalsalariespaidfor202,were$38,623.Thevilagedoesnotguarantethebenefitsgranted bythesocialsecuritysystem. REVENUEBONDSPAYABLE purposeofthebondwastoprovidefinancingfortheconstructionofthewatersystemandextensionsand AtDecember31,202,thevilagehasoneoutstandingisueoflong-termrevenuebonds.The improvementstothesystem.theisuedatedmay4,1989wasfor$102,260.theisuebearsinterest at9.0percentperamandtheprincipalistoberepaidinanualpaymentsrangingfrom$1,670to $13,10throughOctober1,202.Thisisuewaspaidoutduringtheaudityear. Agriculture,FarmersHomeAdministration.TheisuedatedNovember14,190wasfor$130,20.The In190thevilagesoldanaditionalrevenuebondtotheUnitedStatesDepartmentof isuebearsinterestat6.125percentperanum.principalandinterestaretoberepaidinanual paymentsof$8,846throughnovember14,2030.along-termdebtistoberepaidsolelyfromthe incomeandrevenuesderivedfromtheoperationofthewatersystem. 31,202: ThefolowingisasumaryofrevenuebondspayabletransactionsfortheyearendedDecember RevenuebondspayableatJanuary1,202 Aditions $120,092 Long-termdebtatDecember31,202 Reductions NONE._.~6,620 $1 (3,472) includinginterestof$131,064,areasfolows: TheanualrequirementstoamortizetherevenuebondsoutstandingatDecember31,202 Year $8, ,

21 NotestotheFinancialStatements(Continued) Forest,Louisiana Year $8, Total ,29 CONTRIBUTEDCAPITAL Agriculture,FarmersHomeAdministrationtofinancetheconstructionofitswatersystem.Thegrant amount,shownascontributedcapitalonthebalanceshet,isreducedeachyearbytheamountof In190,thevilagereceivedagrantotaling$219,80fromtheUnitedStatesDepartmentof depreciationexpenserecognizedonfixedasetsconstructedoracqniredwiththegrm~tfunds.at December31,202,acumulatedepreciationontheseasetsis$153,860. RESERVEDRETAINEDEARNINGS inote4above,requiresthevilagetoestablishthefolowingreserveacounts: ThebondcovenantwiththeFarmersHomeAdministrationforthe190revenuebondiscused AA"WaterRevenueBondandInterestSinkingFund".Thevilagemust transferintothisfund,eachmonth,one-twelfthoftheprincipalandinterest dueonthenextprincipalandinterestpaymentdate.thisfundisusedto paybondprincipalandinterestastheybecomeduẹ BA"WaterReserveFund".Thevilagemustransferintothisfund,each month,anamountequalto5percentoftheamountobepaidintothe WaterRevenueBondandInterestSinkingFund.Suchamountsmaybe usedonlyforthepaymentofmaturedbondsandinterestwhensuficient fundsarenotavailableinthewaterrevenuebondandinterestsinking Fund. CA"WaterDepreciationandContingencyFund".Thevilagemustransfer intothisfund,eachmonth,anamountequalto5percentoftheamounto bepaidintothewaterrevenuebondandinterestsinkingfund.the depositsinthisfundmaybeusedforunusualorextraordinarymaintenance, repairs,replacements,andextensionsandforthecostofimprovementsto 20-

22 NotestotheFinancialStatements(Continued) Forest,Louisiana thesystem.moneyinthisfundmayalsobeusedtopayprincipaland interestonbondsfalingdueatanytimethereisnotsuficientfundsinthe othereservefunds. ThefolowingisasumaryoftransactionsinthebondreserveacountsfortheyearendedDecember AtDecember31,202thevilagehas$42,162inrestrictedacountstometreserverequirements. 31,202: ReserveforevenuebondspayableatJanuary1,202 Deposits $97,47 Interestearnings Bankfes 15,342 1,386 ExcesBancroftBondstransferedtosavings ReserveforbondspayableatDecember31,202 Debtservice (61,523) (4) (10,516) $42,162 LITIGATIONANDCLAIMS ThevilageisnotinvolvedinanylawsuitsatDecember31,202,norisitawareofanyunaserted

23 SUPLEMENTALINFORMATIONSCHEDULES -2-

24 Schedule1 ScheduleofWaterRates Forest,Louisiana FortheYearEndedDecember31,202 Clasification Residential Monthlyminimumforftrst2,0galons$7.7 Rate Per1,0galonsforthenext4,0galons2.10 Per1,0galonsforthenext4,0galons1.50 Comercial Per1,0galonsforalover10,0galons1.0 Monthlyminimumforfirst10,0galons50.0 Per1,0galonsforalover10,0galons

25 Schedule2 ScheduleofInsuranceCoverage Forest,Louisiana AsofDecember Coverage Typeof Nameof Comercial Louisiana Insurer Number Policy Amountof Expiration GeneralLiabilityMunicipal RiskManagement LML-124 Agregate-$50,0 Coverage Date EachOcurence-$50,0 5/1/03 Agency MedicalPayments-$1,0per person-$10,0peracident FireLegalLiability-$50,0 LawEnforcement Oficers Louisiana LML-124 perocurence Comprehensive Liability Municipal RiskManagement $50,0 5/1/03 PublicOficials Agency Erorsand Louisiana LML-124 Omisions Municipal $50,0 5/1/03 Liability RiskManagement Worker's Agency Compensation Louisiana WC-0164 andemployers Municipal Statutory 1/1/03 Liability RiskManagement StandardFire Agency FarlrlBureau StandardFire FarmBureau SF SF18734 $292,0 $217,20 1/2/03 4/30/03 PropertyDamageStateFarm $21,50 FidelityBondFidelity&Deposit Co.ofMaryland $10,0 5/30/03 12/1/03 BusinesAutoAudubonE&SAPD82426 PhysicalDamage $16,598 6/19/03-24-

26 PROPRIETARYFUNDTYPE-ENTERPRISEFUND Forest,Louisiana FortheYearEndingDecember31,203 ProposedOperatingBudget (Unaudited) REVENUES Water Interestincome Other EXPENSES Totalrevenues Insurance Interestexpense Depreciationexpense Perlnits Payroltaxes Ofice Salestax Repairsandmaintenance Salaries Suplies Mowing Administrativexpense Postage Utilitiesandtelephone Totalexpenses Schedule3 04, ,20 2,450 16,30 6,80 8,70 3, ,0 4, ,20 4,90 6,20 1,0 14,0 1,

27 SUPLEMENTALINFORMATIONSCHEDULE Forest,Louisiana AsofandFortheYearEndedDecember31,202 COMPENSATIONPAIDALDERMEN ResolutionNo.54ofthe1979SesionoftheLouisianaLegislature.InacordancewithLouisiana ThescheduleofcompensationpaidaldermenispresentedincompliancewithHouseConcurent RevisedStatute3:405,aldermenreceiveupto$30.0foreachregularmetingand$5.0foreach specialmetingtheyatend.compensationofaldermenisincludedinpersonalservicesandrelated benefitsexpendituresofthegeneralfund. 26-

28 DorothyKen EdMcKaskale MikeJones Total ScheduleofCompensationPaidAldermen Forest,Louisiana FortheYearEndedDecember31,202 Schedule4 $

29 IndependentAuditors'ReportRequired bygovernmentauditingstandards grantsandinternalcontrolispresentedincompliancewiththerequirementsofgovernmentauditing ThefolowingindependentAuditors'reportoncompliancewithlaws,regulations,contracts,and Standards',isuedbytheComptrolerGeneraloftheUnitedStatesandtheLouisianaGovernmentalAudit Guide,isuedbytheSocietyofLouisianaCertifiedPublicAcountantsandtheLouisianaLegislative Auditor. 28-

30 LITLE&ASOCIATES CERTIFIEDPUBLICACOUNTANTS IndependentAuditors'ReportonComplianceand CHARLESR.MARCHBANKS,JR.,CPA InternalControlOverFinancialReporting Wm,TODLITLE,CPA JAMESC.BOND,CPA MAYORANDBOARD OFALDERMEN Forest,Louisiana WehaveauditedthegeneralpurposefinancialstatementsoftheVilageofForestasofandfortheyear endeddecember31,202endedandhaveisuedoureporthereondatedmay2,203.weconducted ourauditinacordancewithu.s.generalyaceptedauditingstandardsandthestandardsaplicableto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneralofthe UnitedStates. Compliance AspartofobtainingreasonableasuranceaboutwhethertheVilageofForest'sfinancialstatementsare freofmaterialmistatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws, regulations,contractsandgrants,noncompliancewithwhichcouldhaveadirectandmaterialefecton thedeterminationofinancialamounts.however,providinganopiniononcompliancewiththose provisionswasnotanobjectiveofourauditand,acordingly,wedonotexpresuchanopinion.the resultsofourtestsdisclosedoneinstanceofnoncompliancethatwasrequiredtobereportedunder GovernmentAuditingStandards.Thatfindingispresentedintheacompanyingscheduleofindingsand questionedcostsasitem02-1. InternalControlOverFinancialReporting Inplaningandperformingouraudit,weconsideredtheVilageofForest'sinternalcontroloverfinancial reportinginordertodetermineourauditingproceduresforthepurposeofexpresingouropiniononthe financialstatementsandnotoprovideasuranceontheinternalcontroloverfinancialreporting.our considerationoftheinternalcontroloverfinancialreportingwouldnotnecesarilydisclosealmatersin theinternalcontroloverfinancialreportingthatmightbematerialweakneses.amaterialweaknesis aconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoesnot reducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbematerialinrelation tothefinancialstatementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodby employesinthenormalcourseofperformingtheirasignedfunctions.wenotednomatersinvolving theinternalcontroloverfinancialreportinganditsoperationthatweconsklertobematerialweakneses. PHONE(318) FAX(318) NORTH31=xSTRETMONROE,LA71201 MAILINGADRES:P.O.BOX4058MONROE,LA7121%4058

31 MAYORANDBOARD OFALDERMEN Forest,Louisiana IndependentAuditors'ReportonCompliance AndInternalControlOverFinancialReporting,etc December31,202 ThisreportisintendedsolelyfortheinformationanduseoftheVilageofForesțmanagementofthe vilage'sofice,andthelouisianalegislativeauditorandisnotintendedtobeandshouldnotbeused byanyoneotherthanthesespecifiedparties. Monroe,Louisiana May2,203

32 Schedule5 Forest,Louisiana ScheduleofFindingsandQuestionedCosts FortheYearEndedDecember31,202 A.SUMARYOFAUDITRESULTS TheAuditors'reportexpresesanunqualifiedopiniononthegeneralpurposef.mancial statementsofvilageofforest. 2NoinstancesofnoncompliancematerialtothefinancialstatementsofVilageofForest werediscloseduringtheaudit. Onereportableconditionrelatingtotheauditofthef'mancialstatementsisreportedinthe IndependentAuditors'ReportonInternalControl. B.FINDINGS-FINANCIALSTATEMENTSAUDIT 02-1.NedtoComplywithLouisianaLocalGovernmentBudgetAct Finding:Thevilagedidnotadequatelymonitorbudgets.LouisianaRevisedStatute(LRS) 39: requiresthevilagetoadoptabudgetamendmentwhenexpenditurestodate plusprojectedexpendituresfortheremainderoftheyearexcedestimatedanualbudgeted expendituresbyfivepercentormore.thevilagewasnotfulyawareofthestatutory requirements.consequently,fortheyearended202,actualexpendituresexceded budgetedexpendituresby$5,481or19%. Recomendation:Inthefuture,thevilageshouldamenditsbudgetwhenactual expendituresplusprojectedexpendituresexcedestimatedbyfivepercentormoreas requiredbythestatutes. ManagementsResponse:Thevilagestatedthatinthefutureabudgetwouldbeamended asrequiredbythestatutes.

33 Schedule6 SumaryScheduleofPriorAuditFindings Forest,Louisiana FortheYearEndedDecember31,202 TherewerenofindingsreportedintheauditreportfortheyearendedDecember31,201 32

34 EO.Box276~Forest,Louisiana71242~Phone/Fax ~,9ILLAGBOF AsMay~Ididnotknowtoamendthebudgetbyfiveperce~tormoreasrequiredbythe J~e16,2~3 statutes.inthefutureiwilwatchthebudgetmorecloselyandwilamcdlhebudgetasrequiredbythe