VILAGEOFSICILYISLAND,LOUISIANA AsofandfortheYearEndedJune30,20. WithSuplementalInformationSchedules

Transcription

1 / VILAGEOFSICILYISLAND,LOUISIANA AsofandfortheYearEndedJune30,20 GeneralPurposeFinancialStatements WithIndependentAuditors'Report WithSuplementalInformationSchedules Underprovisionsofstatelaw,thisreportisapublic document.acopyofthereporthasbensubmitedto thentityandotherapropriatepublicoficials.3"he reportisavailableforpublicinspectionathebaton RougeoficeoftheLegislativeAuditorand,where apropriate,atheoficeoftheparishclerkofcourt. ReleaseDate~'):o-~r'/-~01_

2 VILAGEOFSICILYISLAND,LOUISIANA TABLEOFCONTENTS SECTIONI-GENERAI,PURPOSEFINANCIALSTATEMENTS IndependentAuditor'sReport CombinedBalanceShet-AilFundTypesandAcountGroups ComhinedStateofRevenues,ExpendituresandChangesin FundBalances-BudgetandActual(GAPBasis)- ComparativeStatementofRevenues,ExpensesandChanges GovernmentalFund S atementofcashflows-enterprisefund inretainedearnings-enterprisefund NotestotheFinancialStatements SECTIONI-FINANCIALSTATEMENTSOFINDIVIDUAL FUNI)SANDACOUNTGROUPSANDOTIERSUPLEMENTAL INFORMATIONSCI]EI)ULES GeneralFund ComparativeBalanceShet ComparativeScticduleofRevenues,ExpendituresandChangesin ComparativeScheduleofExpenditures FundBalance-AlGovernmentalFundTypes ProprietaryFundType-EnterpriseFunds CombiningBalanceShet CombiningStatementofRevenueandExpensesandChanges CombiningStatementofCashFlows inretainedearnings SdlednleofCompensationPaidAldermen SECTIONI-COMPLIANCE/INTERNALCONTROL PAGE

3 ReportonComplianceandonInternalControloverFinancial ReportingBasedonanAuditofFinancialStatementsPerformed ilacordancewilhgovernmentauditingstandards SFCTIONIV-SCHFDUI.EOFINDINGSANDQUESTIONED COSTS ScheduleofFindingsandQuestionedCosts SumaryScheduleofPriorAuditFindings SECTIONV-RESPONSE ResponseonAuditFindings

4 SECTIONI-GENERALPURPOSEFINANCIALSTATEMENTS -1-

5 SWITZER,tOPKINS&MANGE I)lNISR,SWITZER,CPA CertifiedPublicAcountants H,MYI.ESHOPKINS,CPA ~USANL.MANGE,CPA ]OHNM,JONES,CPA1921-]983 INDEPENDENTAUDITORS'REPORT IlnorableAnWycof,Mayor SicilyIsland,Louisiana andmembersoftheboardofaldermen WehaveauditedtileacompanyingeneralpurposefinancialstatementsoftheVilageofSicilyIsland, I,onisianasofJune30,20antifortheyearthenended,aslistedinthetablenfcontents.These generalpurposefinancialstatementsaretheresponsibilityofvilageofsicilyisland,louisiana's management.ouresponsibilityistoexpresanopiniononthesegeneralpurposefinancialstatements basedonouraudit. AuditingStandards',isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandardsrequire WeconductedourauditinacordancewithgeneralyaceptedauditingstandardsandGovernment Iha!weplanandperformtheauditobtainreasonableasuranceaboutwhetherthefinancial statementsarefreofmaterialmistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingthe acnuntingprinciplesnscdandsignificantestimatesmadebymanagement,aswelasevaluatingthe overalfinancialstatementpresentation.webelievethatourauditprovidesareasonablebasisforour opinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inalmaterial generalyaceptedaconfingprinciples. respects,thefinancialposilionofvilageofsicilyisland,louisiana,asofjune30,20,andtheresultsof itsoperationsandthecashflowsofitsproprietaryfundtypesfortheyearthenendedinconformitywith InacordancewitbGovernmentAuditingStandards,wehavealsoisuedourcfmrtdatedJanuary12, 20onourconsiderationoftheVilageofSicilyIsland,Louisiana'sinternalcontroloverfinancial reportingandourtestsofitscompliancewithcertainprovisionsoflaws,regnlations,contractsand grants.thatreportisanintegralpartofanauditperformedinacordancewithgovernmentauditing Standards,andshin lidbereadinconjunctionwiththisreportinconsideringtheresultsofouraudit. 1840NOR'IHE.tWALACEBLVD.EO.BOX478FERIDAY,LA7134 OFICESINA'ICHEZ,MISISIPI -2- (318) FAX(318)

6 HonorableAnWycoft,Mayor AndMembersoftheBoardofAldermen PageTwo Ourauditwasmadeforthepurposeoforminganopiniononthegeneralpurposefinancialstatements takenasawhole.thesuplementalinformationscheduleslistedinthetableofcontentsarepresented forthepurposeofaditionalanalysisandarenotarequiredpartofthegeneralpurposefinancial statementsofthevilageofsicilyisland,louisiana.suchinformationhasbensubjectedtotheauditing proceduresapliedinthexaminationofthegeneralpurposefinancialstatementsand,ilouropinion,is fairlystatedinalmaterialrespectsinrelationtothegeneralpurposefinancialstatementstakenasa whole. January12,20 Fcriday,Louisiana -3-

7 0 o~

8 E~ # o

9 VILAGEOFSICILYISLAND,LOUISIANA YEARENDEDJUNE30,20 Revenues: Taxes Advalorem Franchise Licensesandpermits lntergovernmentalrevenues Tobacotaxes Bertaxes Parishgarbagetaxes Parishroadtaxes Statefireinsurancerebate li'ederalfunds-federal grants Slatefunds-ruraldcvelnpnlcntgrant Statefunds-policegrant Fes,chargesandeonlisionsforservices Carbagcolectionfes Firedepartmentfes Finesandforfeitures Interestiucomc OtherTotalrevenues Expenditures: Generalgovernment I'ubliesafety- Police Fire Sanitalion Ruraldevelopmentgrantexpelditures Totalexpenditures Excesofrevenues(uladcr) expenditures Fundbalances,begining Fundbalances,ending [?,udget Actual 8,50$ 6,0 9,0 2,40 1,70 34,0 13,0 3,90 20,0 4,50 3,70 45,0 3, ,750 91,0 90,0 6,0 24,0 21,0 (56,250) 57,732 $i,482 Variance Favorable- Lilp_f3_v_orable~ 8,640$ 4,858 14,989 2,276 1,176 37,74 15,10 3,90 19,60 16,293 4,748 4,960 83,31 4,401 5,532 27,58 149,54 69,726 7,897 12, (1,142) 5,989 (124) (524) 3,74 2,10 19,60 (3,707) 248 1,260 38,31 1,401 5,482 72,838 (58,54) 20,274 (1,897) 1,698 (Memorandum Only) 19 Actu~ 7,674 6,815 16,51 2,701 1,595 35,796 14,318 8~131 9,702 12,95 15,0 5,173 4,581 46,15 3, ,145 73,524 97,815 13,967 28,838 12,95 239,469 (28,469) 27,139 (1,81) 4,369 57,732 (35,94) 98,190 $45,851$4,369$62,196 "thefolowingnotesarcanintegralpartofthesefinancialstatements. -6-

10 Operatingrevenues: Chargesforservices VILI,AGEOFSICILYISLAND,LOUISIANA ENTERPRISEFUNDS Operatingexpenses: Personalservices Naturalgaspurchases Materialsandsuplies Repairsandmaintenance Utilitiesandtelephone Profesionalfes Insurance Depreciation Otheroperatingexpense Totaloperatingexpenses Operating0os) YEARSENDEDJUNE30,20AND19 Nonoperatingrevenues(expenses): Grantincome lcrestiueolnc Inlerestexpense Totalnonoperatingrevemles(expenses) Netincome(los) Fundequity,beginingofyear Fundequity,endofyear 20 $19,307 34,01 40,037 19,639 28,931 17,052 5,856 9,415 57,63 6, ,87 (19,570) 26,802 8,959 (14,98) 20,763 1,193 (Memorandum Only) 170,172 46,052 31,495 19,041 1,562 14,538 2,023 16,896 48,35 8,876 18,818 (18,646) 8,719 (16,0) (7,281) (25,927) 1,547,68 1,573,615 $1,548,81 $1,547,68 Thefolowingnotesareanintegralpartofthesefinancialstatements. -7-

11 CasJlflowsformoperatingactivities: Cashreceivedfrontcustomers Cashpaidemployes Cashpaidtosupliers Netcashprovidedbyopcratlngactivities VILAGEOFSICILYISLAND,LOUISIANA ENTERPRISEFUND FORTHEyEARSENDEDJUNE30,20AND19 Cashflowsfromnon-capltalfir,ancingactivities: Operatingtransfers(to)otherlunds (Decrease)increaseilcol~slm~crdeposits Netcashprovidedbynoneapitalfiuancingactivities Cashflowsfromfinaucingactivities: Grantsreceived Principalpaidonrevenuebands In(restpaidonrevenuehonds Netcashusedhyfitan~itgactivities Cashflowsfromcapitalactivities I'urchaseofixedasets Cashflowsfrominvestingac(ivities lutereslincome Net(decrease)incashandcashequivalents Cashandcashequivalems-beginingufy~:ar Cashanticashequivalents~e*tdofyear ReconciLiationofoperating(los)tonetcash providedbyoperatingactivities: Operating(los) Adjuslmentstoreconcileoperati.g(los)to netcashprovidedbyoperatingactivities: Depreciation Changesinasetsandliabilities: Increaseinacountsreceivahle Increaseinacountspayahle Netcashprovidedbyoperatingactivities $ 217,156 $ 134,01) 131,505) (6o,go5) (9,358) (7o,163) 26,802 (7,0) (15,650) 4,152 (5,730) 231,485 $ 19,570) 57,63 17,849 (4,262) Thefolowingnotesareanintegralpartofthesefinancialstatements. -B- (Memorandum Only) 162,737 (46,052) 191,480) (17,451) 1,467 (7,0) 16,o) 9,03 $ (5,297) 236,782 (18~646) 48,35 (7,436) 2,952

12 ASOFANDFORTHEYEARENDEDJUNE30,20 VILAGEOFSICILYISLAND,LOUISIANA NOTESTOTHEFINANCIALSTATEMENTS INTRODUCTION 1.TheVilageofSicilyIsland,LouisianawasincorporatedunderprovisionsoftheLawrasonAct 2.Thepurposeoftilemunicipalityistoprovideutilityservices,publicsafety(policeandfire), asavilageaugust21,195. strets,sanitationandgeneraladministrativeservices. 3.TheBoardofAldermenconsistsofthrelectivemembersandtheyarepaid$60permonth. 4.TheTownislocatedinthenortheasternportionofCatahoulaParish.,Louisiana.Catahoula ParishislocatedinNortheastLouisiana. 5.ThepopulatiouofSicilyIsland,Louisianais427persons. 6.TheVilageofSicilyIsland,Louisianahasninefultimemployes. 7.TheVilageofSicilyIsland,Louisianahasaproximately250utilitycustomers. NOTEI-SUMARYOF'SIGNIFICANTACOUNTINGPOLICIES A.BASISOFPI~;SENTATION preparedinconfi)rmitywithgeneralyaceptedacountingprinciples(gap)asapliedto TheacompanyingfinancialstatementsoftheVilageofSicilyIsland,Louisianahaveben governmentalunits.thegovernmentalacountingstandardsboard(gasb)istheacepted standardsetingbodyforestablishingovernmentalacountingandfinancialreporting principles. B.REPORTINGENTITY Asthemunicipalgoverningauthority,foreportingpurposes,theVilageofSicilyIsland, Louisianaiseonsideredaseparatefinancialrepnrtingentity.Thefinancialreportingentity consistsof(a)theprimarygovernment(municipality),(b)organizationsforwhichtheprimary governmentisfiuaneialyacountable,and(e)otherorganizationsforwhichnatureand significanceoftheirelationshipwiththeprimarygovernmentaresuchthatexclusionwould causethereportingentity'sfinancialstatementstobemisleadingorincomplete. -9-

13 NOTESTOTIlEFINANCIALSTATEMENTS VILAGEOFSICILY"ISLAND,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,20 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED GASBStatementNo.14establishedcriteriafordeterminingwhichcomponentunitshouldbe consideredpartofthevilageofsicilyisland,louisianaforfinancialreportingpurposes.the basicriterionforincludingapotentialcomponentunitwithinthereportingentityisfinancial acountability.thegasbhasetforthcriteriatobeconsideredindeterminingfinancial acountability.thiscriteriaincludes: 1.Apointingavotingmajority,ofanorganization'sgoverningbody,and a)theabilityofthemunicipalitytoimposeitswilonthatorganizationand/or b)thepotentialsfortheorganizationtoprovidespecificfinancialbenefitorimpose specificfinancialburdensonthemunicipality. 2.Organizationsforwhichthemunicipalitydoesnotapointavotingmajoritybutare 3.Organizationsforwhichthereportingentityfinancialstatementswouldbemisleading fiscalydependentonthemunicipality. ifdataoftheorganizationisnotincludedbecauseofthenatureorsignificanceofthe Asrequiredbygeneralyaceptedacountingprinciples,thesefinancialstatementspresenthe relafionship. VilageofSicilyIsland,Louisiana(theprimarygovernment)anditscomponentunits.Thereare nocomponentunitsinclndedintheacompanyingfinancialstatementsaseitherblendedwiththe municipalityfundsordiscretelypresented. C.FUNDACOUNTING Themunicipality,usesfimdsandacountgroupstoreportonitsfinancialpositionandtheresults ofitsoperations.fundacountingisdesignedtodemonstratelegalcomplianceandtoaid financialmanagementbysegregatingtransactionsrelatingtocertaingovernmentfunctionsor activities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Ontheotherhand,an acountgroupisafinancialreportingdevicedesignedtoprovideacountabilityforcertainasets andliabilitie,~;thaiarenotrecordedinthefundsbecausetheydonotdirectlyafectnetexpendable availablefinancialresources. Fundsofthemunicipalityareclasifiedintotwocategories:governmentalandproprietary.In turn,eachcategoryisdividedintoseparatefundtypes.thefundclasificationsandadescription ofeachexistingfired.typefolow: -lo-

14 ASOFANDFORTHEYEARENDEDJUNE30,20 VILAGEOFSICILYISLAND,LOUISIANA NOTESTOTltEFINANCIALSTATEMENTS NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED GovernmentalFunds Governmentalfundsareusedtoacountforalormostofthemunicipality'sgeneralactivities, includingtilecolectionandisbursementofspecificorlegalyrestrictedmonies,the acquisitionorconstructionofgeneralfixedasets,andtheservicingofgeneralongtermdebt. Govermnentalfundsinclude: GeneralFund-thegeneraloperatingfitndofthemunicipalityandacountsforal ProprietaryFunds financialresources,excepthoserequiredtobeacountedforinotherfunds. Proprietaryfundsareusedtoacountforactivitiesimilartothosefoundintheprivatesector, wherethedeterminationofnetincomeisnecesaryorusefultosoundfinancialadministration. Proprietaryfundsdiferfromgovernmentalfundsinthatheirfocusisonincome measurement,which,togetherwiththemaintenanceofequity,isanimportantfinancial indicator.proprietaryfundsinclude: Enterprisefunds-acountforoperations(a)wheretheintentofthegoverningbodyis thathecosts(expenses,includingdepreciation)ofprovidingodsorservicestothe generalpubliconacontinuingbasisbefinancedorecoveredprimarilythroughuser charges,or(b)wherethegoverningbodyhasdecidedthatperiodicdeterminationof revenuesearned,expensesincured,and/ornetincomeisapropriateforcapital GeneralFixedAsets maintenance,publicpolicy,managementcontrol,acountability,orotherpurposes. Theacourtingandreportingtreatmentapliedtotheproperty,plantandequipmentand long-termliabilitiesasociatedwithafundaredeterminedbyitsmeasurementfocus. Algovernmentalfundtypeoperationsareacountedforonaspendingor"financialflow" measurementfocusandonlycurentasetsandcurentliabilitiesaregeneralyincludedon theirbalanceshets. Fixedasetsusedingovernmentalhindtypeoperations(generalfixedasets)areacountedfor inthegeneralfixedasetsacountgroupandarerecordedasexpendituresinthe governmcnlalfundtypeswhenpurchased.thetownhaselectedtonotcapital~epublic domain("infrastructure")fixedasetsconsistingofcertainimprovementsotherthan buildings,includingroads,bridges,sidewalksandrainageimprovements.nodepreciation hasbenprovidedongeueralfixedasets. -1-

15 VI,LAGEOFSICILYISLAND,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,20 NOTESTOTHEFINANCIALSTATEMENTS NOTE1 SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED Alproprietaryfundsareacountedforonacostofservicesor"capitalmaintenance" measurementfocus,andalasetsandaliabilities(whethercurentornoncurent)asociated withtheiractis,ityareincludedontheirbalanceshets. Depreciationofalexhaustiblefixedasetsusedintheproprietaryfundischargedasan expenseagainstheiroperations.depreciationhasbenprovidedoverthestimateduseful livesusingthestraight-linemethodasfolows: Gaslines,Sewerlinesandwaterplant Alfixedasetsarestatedahistoricalcost. Vehiclesandequipment 40years 3to8years D.BASISOFACOUNTING measurementmade,regardlesofthemeasurementfocusaplied. Basisofacountingreferstowhenrevenuesandexpendituresorexpensesarerecognizedinthe acountsandreportedinthefinancialstatements.basisofaeoutingrelatestothetimingofthe Algovernmentalfimdsareacountedforusingthemodifiedacrualbasisofacounting.Their revenuesarcrecognizedwhentheybecomemeasurableandavailableasnetcurentasets. Taxpayer-asesedincome,grosreceiptsandsalestaxesareconsidered"measurable"wheninthe handsofcolectingovernmentsandarerecognizedasrevenueathatime.anticipatedrefunds ofsuchtaxesarerecordedasliabilitiesandreductionsofrevenuewhentheyaremeasurableand theirvaliditysemscertain. Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacontingwhenthe relatedfundliabilityisincured.anexceptiontothisgeneralruleisprincipalandintereston generalong-termdebtwidchisrecognizedwhendue. Alproprietaryfundsareacountedforusingtheacrualbasisofacounting.Theirevenuesare recognizedwhenearnedandtheirexpensesarerecognizedwhenincured.badebtsare recognizedwhentheybecomeuncoilectablc. E.BUDGETSANDBUDGETARYACOUNTING TheVilagefolowstheseproceduresinestablishingthebudgetarydatareflectedinthesefinancial statements: TheVilagepreparesaproposedbudgetandsubmitsitotheMayorandBoardof Aldermenolaterthanfiftendayspriortothebeginingofeachfiscalyear.TheTown aprovesalmdgetforthegeneralfundandcapitalprojectsfunds. -12-

16 VILAGEOFSICILYISLAND,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,20 NOTESTOTHEFINANCIALSTATEMENTS NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED E.BUDGETSANDBUDGETARYACOUNTING-CONTINUED 2.Asumaryoftheproposedbudgetispublishedandthepublicnotifiedthatheproposed budgetisavailableforpublicinspection.athesametime,apublichearingiscaled. 3.Apublichearingisheldontheproposedbudgetatleastendaysafterpublicationofthe 4.Aftertileholdingofthepublichearingandcompletionofalactionecesarytofinalize calforthehearing. andi[mplementhebudget,thebudgetisadoptedthroughthepasageofanordinance 5.Budgetaryamendmentsinvolvingthetransfertofundsfromonedepartment,programor priortothecomencementofthefiscalyearforwhichthebudgetisbeingadopted. functiontoanotherorinvolvingincreasesinexpendituresresultingfromrevenues 6.Albudgetaryapropriationslapseathendofeachfiscalyear. excedingamountsestimated,requiretheaprovaloftheboardofaldermen. 7.Budgelsareadoptedonabasisconsistentwithgeneralyaceptedacountingprinciples (GAP).Budgetedamountsareasoriginalyadopted,orasamendedh'omtimetotimeby theboardofaldermen.suchamendmentswerenotmaterialinrelationtotheoriginal F.INVENTORIES aprupriations. Inventoriesormaterialandsupliesarevaluedatlowerofcostormarket. G.FUNDEQI]ITY ContributedCapital contributionsfromdevelopers,customers,orotherfundswhensuchl'esmlresarerestricted Contributedcapitalisrecordedinproprietaryfundsthathavereceivedcapitalgrantsor fortheacquisitionorconstructionofcapitalasets.contributedcapitalisamort~edbasedon thedepreciationrecognizedonthatportionoftheasetsacquiredorconstructedfromsuch H.RESTRICTEDASETS resources. Certainprocedsofenterprisefundrevenuebonds,aswelascertainresourcesetasidefortheir repayment,areclasifiedasrestrictedasetsonthebalanceshetbecausetheiruseislimitedby aplicablebondcovenantsashstedinnote

17 NOTESTOTHEFINANCIALSTATEMENTS VILAGEOFSICILYISLAND,LOUISIANA ASOFANDFORTHEYEARENDEDJUNE30,20 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED 1.COMPARATIVEDATE Comparativetotaldatafortheprioryearhavebenpresentedintheacompanyingfinancial operations,tlowcver,comparative(i.e.,presentationofprioryeartotalsbyfiredtype)datahave statementsinrdertoprovideanunderstandingofchangesinthevilage'stimaneialpositionand notbenrepresentedineachofthestatementsincetheirinclusionwouldmakethestatements undulycomplexantidificultoread. J.TOTALCOLUMNSONCOMBINEDSTATEMENTS-OVERVIEW Totalcolumnsonthecombinedstatements-overviewarecaptioned"MemorandumOnly"to indicatethatheyarepresentedonlytofacilitatefinancialanalysis.datainthesecolumnsdonot presentfinancialposition,resultsofoperations,orchangesinfinancialpositioninconformitywith generalyaceptedacountingprinciples.neitherisuchdatacomparabletoaconsolidation. Interfundeliminationshavenotbenmadeintheagregationofthisdata. K.CASHANDCASI EQUIVALENTS Cashincludesamountsindemandeposits,interest-bearingdemandepositsandtimedeposits. Cashequivalentsincludeamountsintimedepositsandthoseinvestmentswithoriginalmaturities of90daysorles.understatelaw,themunicipalitymaydepositfundsindemandeposits, interest-bearingdemandeposits,ortimedepositswithstatebanksorganizedunderlouisiana laworanyotherstateoftheunitesstates,orunderthelawsoftheunitedstates. L.ENCUM13RANC.ES TheVilageofSicilyIslandoesnotusencumbranceacounting. M.AMOUNTSI)UETO/FROMOTtERFUNI)S Amountsreflectedasdueto/fromotherfunds,inalfunds,representshort-termintcrfnd NOTE2-CtlANGESINGENERALFIXEDASETSACOUNTGROUP receivables/payablesandconsidered"availablespendableresources." Asumaryofchangesingeneralfixedasetsfolows: -14-

18 ASOFANDFORTHEYEARENDEDJUNE30,20 NOTESTOTHEFINANCIALSTATEMENTS VILI,AGEOFSICILYISLAND,LOUISIANA NOTE2 CltANGESINGENERAl,FIXEDASETSACOUNTGROUP-CONTINUED LandandBuildings Equipment 6/3019. Balance $42,740 Total 267,040 $12,0 Aditio 1,781$ _~ 6/30/20 $54,740 Balance $309,780$13,781$ S323, ,821 NOTE3-PROPRIETARYFUNDPROPERTY.PLANTANDEQUIPMENT Asumaryofproprietaryfundtypeproperty,plantandequipmentatJune30,20folows Sewersystemandequipment Gasystemandequipment $1,264,586 Watersystemandequipment 282,398 Les:acumulatedepreciation Total 2,231, ,807 Net $1,513,246 (718,545) NOTE4-CHANGESINLONG-TERMDEBT ThefolowingisasumaryofbondtransactionsoftheVilageofSicilyIslandfortheyearended June30,20: RevenuebondspayableatJune30,19 Principalretirementduringtheyear RevenuebondspayableatJune30,20 $313,0 $306,0 (7,0) Outstandinglong-termdebtofthevilageasofJune30,20isasfolows: $393,80SewerRevenueBondsduein anualinstalmentsof$8,0to $23,0throughSeptember2021 with5%interest $306,0-15-

19 NOTE4 VILAGEOFSICILYISLAND,LOUISIANA NOTESTOTHEFINANCIALSTATEMENTS ASOFANDFORTHEYEARENDEDJUNE30,20 CHANGESINLONG-TERMDEBT-CONTINUED TheanualrequirementstoamortizealdebtoutstandingasofJune30,20areasfolows: Fiscalyearending June30 Bonds Interest Total Total $8,0 8,0 8,0 9,0 9,0 264,0 $15,30 14,90 14,50 14,10 13, ,250 $23,30 2,90 2~50 23,10 2, ,250 $306,0$198,70$504,70 TheVilageofSicilyIslandcurentlyhasoneisueofSewerUtilityRevenuebondsoutstanding. TheflowofundsandrestrictionsonusearegovernedbythebondIndenture,tiletermsofwhich aresumarizedasfolows: AloflhcincomeandrevenueoftheSewerSystemshalbedepositedascolectedina separateandspecialbankacountdesignatedasthesewerrevenuefundandshalbe established,maintainedandadministeredinthefolowingorderofpriority,andforthe folowingpro'poses: 1.Thepaymentofalreasonableandnecesaryexpensesofoperatingandmaintainingthe Sys cm. 2.ThestablishmentofaRevenueBondandInterestSinkingFundsuficientIamounto paypronlptlyandfulytheprincipalandinterestonthebondsastheycomedue,by transferingfl'omtherevenuefundtothesinkingfundonorbeforethe15ihofeach monlh,]/6oftheamountofinterestfalingdueonthenextsucedinginterestpayment dale,anti1/12oftheamountofprincipalfalingdueonthenextsucedingdateon wbiehprincipalispayable. 3.ThestablishmentofaSewerReserveFundbytransferingfivepercent(5%)ofthe amountransferedtothebondandinterestsinkingfundtosaidfunduntilsuchtime astherehasbenacumulatedinsaidreservefundanamtofmoneyequaltothe highestcombinedprincipalandinterestrequirementsforanysucedingtwelve(12) monlhperiod. -16-

20 ASOFANDFORTHEYEARENDEDJUNE30,20 VILAGEOFSICILYISLAND,LOUISIANA NOTESTOTHEFINANCIALSTATEMENTS NOTE4-CHANGESINLONG-TERMDEBT-CONTINUED 4.Thestablishmentandmaintenanceofa"SewerDepreciationandContingencyFund" tocarefordepreciation,extensions,aditions,improvementsandreplacements necesarytoperatethesystemproperlybytransferingtosaidfundthesumof$97.0 TheVilageisincompliancewitheachofthesecovenantsofthebondindenture. pet'month.thesetransfersaretocomenceuponcompletionofthesystem. NOTE5-PROP~_R_'I'y_TA_X_ PropertytaxesatachasanenforceablelienonpropertyasofJanuary1.Taxesareleviedin DecemberandpayablebyJune15,ofthefolowingyear.TheCatahoulaParishAsesorprepares alistofpropertytaxesduethevilage,buthevilageisresponsibleforbilingsandcolections. NOTE6-REST_RI(~!'!~!LASETS_ TheVilage'stotalmilageis7.24milsgeneralalimonytaxandthetotalasesmentis$1,170,160. Certainasetsarerestrictedfordebtservice,constructionandcustomerdeposits.Theseasets consistofthefolowingasofjune30,20: Proprietary Customerdeposits Depreciationfund $27,695 Fund Reservefnd Sinkingfund 37,36 5,6 Total $94,959 24,232 NOTE7-RETIREMENTCOMITMENTS TheVilageofSicilyIslandemployesarealmembersofthesocialsecuritysystemandare membersofnotheretirementplan.thexpenseofthesocialsecurityisreflectedinpayrol taxesinthevarioustatementsofincome. NOTE8-CASHANDINVESTMENTS Atyear-end,thecaryingamountoftheVilage'sdeposits(checkingandsavingsacounts)was $407,382anti{hebank'sbalancewas$403,627.Ofthebankbalance,$10,0wascoveredby federaldepositoryinsuranceand$307,382wascoveredbycolateralheldbyitsagentinthe Vilage'sname. -17-

21 ASOFANDFORTHEYEARENDEDJUNE30,20 VI.LAGEOFSICILYISLAND,LOUISIANA NOTESTOTHEFINANCIALSTATEMENTS NOTE9-CONTRIlIUTEDCAPITAL TheproprietaryfundhasreceivedcontributionsfromStateantiFederalsources,andthe contributedcapitalasofjune30,19wasasfolows: NOTE10-1NDIVI)UAI,RECEIVABLESANDPAYABLES EnterpriseFund ThefolowingisasumaryofreceivablesforJune30,20: $1~627,146 General Taxes:AdValorem Fund_ Proprietary Revenues:Servicefes Garbagefes $701 FireIces 436 $ Fund 392 $1,529$15,582 15,582 Asumaryofindividualreceivablesandpayablesreflectedas"duetorduefrom"otherfunds folows: GeneralFund ReceivablePayable Interfund ProprietaryFund-EnterpriseFunds $ $141,156 WaterReve~lucFund $141,156$141, ,156 NOTE1-FUNDI)_I~F_I(_~I_TS_" ThenterprisefiredhadadeficitinretainedearnhlgsatJune30,20of$146,

22 FINANCIALSTATEMENTSOFINDIVIDUALFUNDS SECTIONI AND()TILERSUPLEMENTARYINFORMATIONSCHEDULES ANDACOUNTGROUPS -19-

23 GENERALFUND Toacountforesourcestraditionalyasociatedwithgovcrmnentsthatare notrequiredtobeacountedforinanotherfund. -20-

24 VilageofSicilyIsland,Louisiana ComparativeBalanceShet June30,20and19 GeneralFund Memorandum Cashandcashequivalents Certificatesofdeposit A~_SETS 20 31,196 $ 19 Only Receivables(Netofalowancefor 150,40 Acrnedinterestreceivable uocolectibles$0) 1, ,132 8,137 10,525 Duefromothergow~r~Jments Duefromotherfunds 4,176 31,372 4,97 34 TotalAsets 187,96 183,47 1,iabilities LIABIL[! Acountspayable Duetotherfitnds TotalLiabilities 141, ,02 142,15 125,745 1,723 FundBalances: Unreserved-undesignated 45,851 57,732 TotalLiabilitiesnodFundBalance $187,96 $183,47 Thefolywingnotesareanintegralpartofthesefinancialstatements. -21-

25 VilageofSicilyIsland,Louisiana GeneralFund ComparativeScheduleofRevenues,Expendituresand ChangesinFundBalance-AlGovernmentalFundTypes FortheYearsendedJune30,20 REVENUES Taxes Advalorem Franchise Licensesandpermits hltergovernmentalrevenues Tobacotaxes Bertaxes Parishgarbagetaxes Parishroadtaxes Slatefireinsurancerebate Federalfunds-federalgrants Stalefunds-ruraldevelopmentgrant Statefunds-policegrant Fes,chargesandcomisionsforservices G'arbagecolectionfes Firedepartmentfes Finesandforfeitures Interestincome Other Totalrevenues E_X_PENDITURES Generalgovernment: Publicsafety Police Fire Sanitation Ruraldevelopmentgrantexpenditures Totalexpenditures (Deficiency)ofRevermt!soverExpenditures FundBalaucesatBeginingofYear FundBalancesatEndnfYear $ 20 8,640 $ 4,858 14,989 2,276 1,176 37,74 15,10 3,90 19,60 16,293 4,748 4,960 83,31 4,401 5,532 27,58 149,54 69,726 7,897 12, ,469 (1,81) 57,732 Memorandum Only19 7,674 6,815 16,51 2,701 1,595 36,121 14,49 4,171 9,702 12,95 15,0 5,809 4,707 46,15 3, ,403 7,976 97,535 13,908 28,726 12,95 231,140 (42,737) 10,469 $45,851 $57,732 Thefolowingnotesarealintegralpartofthesefinanelalstatements. -2-

26 Generalgovernment: Personalservices Materialandsuplies Profesionalandotherfes Insurance Utilitiesandtelephone Aldermensalary Otherservicesandcharges Capitaloutlay Publicsafety Police Personalservices Materialandsuplies Profesionalandotherfes lusorance Utilitiesandtelephone Vehiclexpense Otherservicesandcharges Capitaloutlay Fire Personalservices Materialandsuplies Insurance Otherservicesandcharges Capitaloutlay Sanitation Personalservices Matcrialandsuplies Insurance Repairsandmaintenance Capitaloutlay Totalexpcnditure.s VilageofSicilyIsland,Louisiana GeneralFund ComparativeScheduleofExpenditures FortheYeas"EndedJune30, ,689 1,632 25,147 1,06 10,730 21,60 5,740 12,0 149,54 48,769 3,325 5, ,623 2,645 3,436 1,231 69,726 4,307 1, ,897 6,84 2,96 1, ,302 Memorandum Only 2,087 2,640 30,062 8,651 7,870 2,215 4,451 7,976 47,530 3,351 3,124 17,42 2,787 3, ,10 97,535 1,746 1,378 3,1678 7,590 13,908 15,341 6,19 5,787 1, ,726 $239,469 $218,145 Thefolowingnotesareanintegralpartofthesefimcialstatements. -23-

27 PROPRIETARYFUNDTYPE ENTERPRISEFUNDS SewerRevenueFund ToacountfortheprovisionofsewerservicestotheresidentsoftheVilage andsomeresidentsoftheparish.alactivitiestoprovidesuchservicesare GasRevenueFund acountedforinthefund. ToacountfortheprovisionofgaservicestotheresidentsoftheVilageand someresidentsoftheparish.alactivitiestoprovidesuchservicesare acountedforinthisfund. WaterRevenueFund-1"oacountfortheprovisionofwaterandsewerservicestoresidentsofthe VilageofSicilyIsland.Alactivitiesnecesarytoprovidesuchservicesare acountedforinthisfund,including,butnotlimitedtoadministration, operations,maintenance,financingandrelatedebtservice,andbilingand colection. -24-

28 CurentAsetsA_S_~;I$ Cashandcashequivalenls Certificatesofdeposits Receivables(Netofalowancefor UlCOlectibles$1,505) Acrtledinterestreceivahle Duefromotherfunds Reslrictedasets: Cashandcashequivalents Certificatesofdeposi~ Totalcurentasets FixedAsets Utilityplantandcquiplncnt(net) TotalAsets VILAGEOFSICILYISLAND,LOUISIANA ENTERPRISEFUND COMBININGBALANCESIET JUNE30,20 ~,lilt.1tiesanofuni~eou1t~ CurentLiabilities Acountspayable Payablefromrestrictedasets: Customerdeposits Acruedinterest Curentportionofbondspayable Totalcurentliabili ics OtherLiabilities Revenuebondspayahle TolalLiabilities FundEquity Contributedcapital RetainedEarnings: Reservedfordebtservice Reservedforconlingencies Unreserved Totalretainedearningsandfundequity TotalLiabilitiesandFundEquity Sewer Revenue 2,721 5, ,293 3,82 7, ,418 Gas Revenue Fund 9,130$ 26,402 3, , ,673 Water Revenue J~n~[ Total 57,260 35,274 7,162 1, ,156 26, , ,15 69,1 61,676 15,582 3, ,156 60,949 34, ,903 1,513,246 1,018, ,0 648,689 1,89, ,615 8,0 21, ,0 319, ,569 62A49 5,6 (267,50) 69,134 2, ,363 3, ,47 14,190 28, ,84 27,579 27, , , ,10 3,958 27,695 12,615 8,0 52, ,0 350,268 1,627,146 62~49 5,6 (146,380) 1,548,81 $1,018,460$232,0$648,689$1,89,149 1'hefolowingnotes~reanintegralpartofthesefinancialstatenlents. -25-

29 OperatingRevenues Chargesforservices VILAGEOFSICILYISLAND,LOUISIANA ENTERPRISEFUNDS COMBININGSTATEMENTOFREVENUEANDEXPENSESAND CItANGESINI~YI'AINEDEARNINGS FortheYearEndedJune30,20 OperatingExpenses Personalservices Naturalgaspurchases Materialsandsuplies Repairsandmaintenance Utilitiesandtelephone Profesioualfes Insurance Itepreciatiou OIheroperatingexpense Totaloperatingexpenses Nclincome(los)fromoperations Non-OperatingRevenues(Expenses) (;rantiuconlc hltcrcstincome lulercstexpense Netnun-operatedrevenles(expenses) Netiueonlcbeforetrausfel's Transfers Ne!income(los) Fundequity,beginingofyear Fundequity,endofyear Sewer Revenue E.u_nd Gas Revenue Fond Water Revenue F_ltn_~ $41,016$60,70 97,521 6,914 5,60 8, ,68 2,136 49,298 6,506 40,037 3,504 24, ,596 2,52 89,528 20,581 10,475 3,968 8~64 5,24 9,415 20~49 1,65 80,051 (8,282) (28,758) 17,470 2,293 (14,98) 26,802 1,270 (12.705) 28,072 (20,987) (47,018) (68,05) 767,139 $69,134 (686) (142,64) (143,350) 371,987 $28,637 Thefolowingnotesareanintegralpartofthesefinancialstatements ,396 5,396 2,86 189, , ,562 $621,10 Total $19.~07 34,01 40,037 19,639 28,931 17,052 5,856 9,415 57,63 6, ,87 (19,570) 26,802 8,959 (14,98) 20,763 1,193 1,193 1,547,68 $1,548,81

30 COMBININGSTATEMENTOFCASHFLOWS VIlA~AGEOFSICILYISI,ANI),1,OU1SIANA FortheYearEndedJune30,20 ENTERPRISEFUNDS Cashflowsfromoperatingaelis,ities Reveue Sewer Cashreceivedfromc lstomers Fund Revenue Gas Cashpaidemployes Cashpaidtosupliers $43,026 Netcashprovidedbyoperatingactivities (17,132) (6,914) $68,915 Fund Water Revenue 18,980 (72,316) (6,506) $105,215 Lu~_d (9,907) (20,581) (42,057) 42,57 (131,505) 217,156 (34,01) 51,650 Cashflowsfromuoncapitalfinancing activities Operatingtransfers(lo)fromotherfunds Increaseinconsumerde~.losits 25 Netcashprovidedbynoneapital (10,523) (2,457) (58,603) 1,165 (60,805) (9,358) Cashflowsfromfinancingactivities fhtaneingactivities 25 (12,980) (57,438) (70,163) Grantsreceived Principalpaidonrevenuebontls Interestpaidonrevenuebonds Netcashusedbyfinancingactivities (15,650) (2,650) (7,0) 26,802 26,802 (15,650) 26,802 (7,0) 4,152 Cashflowsfromcapitalaetivilies Cashflowsfrominvestingactivities Purehaseoflxedasets Interestreceived 2,457 1,293 4,872 8,62 Netincrease(decrease)incashand Casilandcashequivalerds-.beginaingofyear cashequivalents 71,794 (958) 30,324 5, ,367 (9,989) Caslaudcashequivalents-endofyear Reconciliationofoperatingincometo 70,836 35,532 19, ,485 (5,739) 25,746 Operatingincome(los) Adjustmentstoreconcileoperatingincome netcash tonetcashprovidedbyoperatingactivities (8,282) (28,758) 17,470 (19,570) Depreciation Changesinaselsandliabilities: Decreaseinacountsreceivable 25,68 (Decrease)inacountspayable 2,010 (436) 1,596 8,145 20,349 (890) (2,936) ")',694 57,63 17,849 Netcashprovidedbyoperatingactivities Thcfolowingnotesareanintegralpartofthesefinancialstatements. $18,980$(9,907) $42,57$51,650 (4,262) -27-

31 SIJPLEMENTALINFORMATIONSCHEDULES VILAGEOFSICILYISLAND,LOUISIANA FortheYearEndedJune30,20 COMPENSATIONPAIDALDERMEN Thescheduleofcompensationpaidtoaldermenispresentedincompliancewithlouseconcurent ResolutionNo,54ofthe1979SesionoftheLouisianaLegislature.Compensationofthealdermenis includedinthelegislativexpendituresofthegeneralfund.inacordancewithlouisianarevised Statute3:405(G),lhealdermenhavepasedanordinancethatsetstheircompensationat$60per -28-

32 VILAGEOFSICILYISLAND,LOUISIANA FORTHEYEARENDEDJUNE30,20 Ms.EmaHiliard Ms.ExelenaWiliams $7,20 M]'.TimFord $21,60 7,20-29-

33 SECTIONI!1-COMPLIANCE/INTERNALCONTROL -30-.

34 SWITZER,t0PKINS&MANGIi'~ I)'.~NISR.SWITZER,CPA CertifiedPublicAcountants I.MYLESHOPKINS,CpA SUSANL.MANGE,CPA JOHNM.JONES,CPA1921*1983 REPORTONCOMPLIANCEANDONINTERNALCONTROL ACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS OVERFINANCIALREPORTINGBASEDONANAUDIrl" OFINANCIALSTATEMENTSPERFORMEDIN IlonorableAnWycolt,Mayor SicilyIsland,Louisiana andmembersoftheboardofaldermen WehaveauditedthegeneralpnrposcfinancialstatementsofVilageofSicilyIsland,Louisianasofand totheyearendedjune30,20,andhaveisuedoureporthereondatedjanuary12,201.wehave conductedourauditinacordancewithgeneralyaceptedauditingstandardsandthestandards aplicabletofinancialauditscontainedingovernmentauditingstandards,isuedbythecomptroler GeueraloftheUnitedStates. ()}nqfliane AspartofobtainingreasonableasuranceaboutwhetherVilageofSicilyIsland,l,ouisiana'sgeneral purposefinancialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewith certainprovisionsoflaws,regnlations~contractsandgrants~noncompliancewithwhicheonldhavea directandmaterialefectonthedeterminationofinancialstatementamounts.however,providingan opiniononcompliancewiththoseprovisionswasnotanobjectofouraudit,andacordingly,wedonot expresuchanopinilm.theresultsofourtestsdisclosedfourinstancesofnoncompliancethatare requiredtobereportedundergovernmentauditingstandardswhicharedescribedintheacompanying scheduleofindingsandquestionedcostsasitems20-1,20-2~20-3and InternalControlOverFinancialReDortin~ InplaningandpcrfiJrmingouraudit,weconsideredtheVilageofSicilyIsland,Louisiana'sinternal controloverfinancialreportinginordertodetermineourauditingproceduresforthepurposeof expresingonropiniououthegeneralpurposefinancialstatementsandnotoprovideasuranceonthe internalcontroloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancial reportingwouldnolnecesarilydisclosealmatersintheinternalcontroloverfinancialreportingthat mightbematerialweakneses,tlowever,wenotedcertainmatersinvolvingtheinternalcontrolover 1840NORilE.E.WAI.LACEliIMD~P.O.BOX47aFKRKiDA~;~LA7134(318)757-~51"-~AX(3~/8) OFICESINA'ICHEZ,MISISIPI -31-

35 HonorableAnWycof,Mayor PageTwo AndBoardofAldermen financialreportingandisoperationthatweconsidertobereportableconditions.reportableconditions involvematerscomingtouratentionrelatingtosignificantdeficienciesinthedesignoroperationof theinternalcontroloverfinancialreportingthat,inourjudgement,couldadverselyafecthevilageof SicilyIsland,Louisiana'sabilitytorecord,proces,sumarizeandreportfinancialdataconsistentwith tl~easertionsofmanagementinthegeneralpurposefinancialstatements.reportableconditionsare describedintheacompanyingscheduleofindingsandquestionedcostsasitems20-4,20-5,20-7, 20-8,20-9,20-10,20-1,20-12and Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrol componentsdoesnotreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbe materialinrelationtothegeneralpurposefinancialstatementsbeingauditedmayocurandnotbe detectedwithinatimelyperiodbyemployesinthenormalcourseofperformingtheirasigned fimctions.ourconsiderationoftheinternalcontroloverfinancialreportingwouldnotnecesarily disclosealmatersintheinternalcontrolthatmightbereportableconditions,and,acordingly,would notnecesarilydisclosealreportableconditionsthatarealsoconsideredtobematerialweakneses. lowever,webelievenoneofthereportableconditionsdescribedaboveisamaterialweaknes. ThisreportisintendedfortheinformationanduseofmanagementofthedistrictandtheLegislative AuditoroftheStateofLouisiana.Itowever,thisreportisamaterofpublicrecordanditsdistributionis notlimited. Feriday,Louisiana January12,

36 SECTIONIV-SCHEDULEOFINDINGS ANDQUESTIONEDCOSTS -3-

37 SCHEDULEOFINDINGSANDQUESTIONEDCOSTS VILAGEOFSICILYISLAND,LOUISIANA YEARENDEDJUNE30,20 SUMARYOFAUDITRESUL 1.Theauditnr'sreportexpresesanunqualifiedopinionontheGeneralPurposeFinancial 2.FourinstancesofnoncompliancewithcertainlawsandregulationsoftileVilageofSicily Statements. Island,Louisianawerediscloseduringtheaudit. 3.Ninereportableconditionswerediscloseduringtheauditofthefinancialstatementsreported inthereportoncomplianceandoninternalcontroloverfinancialreportingbasedonan AuditofFinancialStatementsPerformedinAcordancewithGovernmentAuditing Standards. _FindinRs-FinancialStatementAudit 20-1FailuretoComDIvwithGovernmentBudgetLaw Co~ldition: TheVilage'sanualbudgetforthefiscalyearendedJune30,20wasnot adoptedtimelyacordingtor.s.39:1308.thislawrequiresthatalaction necesarytoadoptandfinal~ethebudgetbecompletedbeforethestartof thefiscalyear.thebudgetfro'theyearendedjune30,20wasadoptedon July10,19.Thebudgetalsowasnotuseduringtheyearasacomparison totheactualrevenuesandexpenditures.thisreducesthefectivenesofthe Recomendation Vilage'sbudgetarycontrolsoverevenuesandexpenditures. TheadministrationoftileVilageshouldensurethatalfuturebudgets complywiththeprovisionsoflawandbeadoptedbeforethestartofthe ManagementResponse:Managementagreswiththisfindingandwilcomplyinthefilture. fiscalyear. 20-2FailuretoConductSherif'sSalesforDelinquentTaxes Condition Recomendation TheVilagedidnothaveproperty,inwhichpropertytaxesweredelinquent, soldatasherif'saleduringyear20.thisisalawrequirementin Louisiana. WerecomendthatinfuturetheVilagemakearangementswiththe SherifofCatahoulaParishtoincludepropertyinwhichtaxesare delinquent,soldatasherif'saleandtheprocedsdepositedinthevilage's bankacounts. ManagementRespousr:ManagementagreswiththisfindingandwilhaveSherif'salesconducted inthefuture. -34-

38 VilageofSicilyIsland,Louisiana ScheduleofFindingsandQuestionedCosts PageTwo 20-3AuditRepoj~l:Np["Fim~Submited Condition TheVilage'sanualauditreportwasnotcompletewithinthesix-month Utltor Recmnmendation: Werecomendthatinthefuturetheauditreportswilbesubmitedtothe periodasrequiredbylaw. oficeofthelouisianalegislativeauditornolaterthandecember31ofthat ManagementResponse:Managementagreswiththisfindingandwilcorecthisproblem. year. 20-4GeneralI,e~g~T_Cp_mpilation Condition TheVilagedidnothavegeneraledgersforanyofthefimdscompiledona timelybases.thevilagedidengageabokepingservicetocompilethe boks,buthefinishedproductdidnotbalance,wasnotacurateinthathe bankbalanceswerenotreconciledfromthebankstatementstothegeneral ledgersandonlyonegeneraledgerwascompiledanditincludedthefour Recomendation fundsofthevilagecombinedintonegeneraledger. AcurategeneraledgersofalfundsoftheVilageshouldbecompiled quicklyafterthemonthendsothatheymaybereconciledandreviewedfor internalcontrolpurposes. ManagementResponse:Managementagreswiththisfindingandwilcorecthisproblem, 20-5ReconciliationofVariousAcounts Condition: Recomendation Bankacounts,acontsreceivableandcustomerdepositswerenot reconcileduringtheyearinmostinstances.theseacountscouldnotbe reconciledbecausetherewasnogeneraledgertoreconciletheacountsto. Albankacounts,acountsreceivablesubsidiariesandcustomerdeposits shouldbereconciledwithin30daysafterthendofthemonth.the administrationshouldimplementproceduresrequiringtimelypreparation ManagementResponse:Managementagreswiththisfindingandwilcorecthisproblem. andaprovalofalreconciliations. 20-_6PreparationofFinan Condition: R.S.3:425requirestheVilagetopresentacuratefinancialstatementsto FinancialstatementswerenotpreparedandpresentedtotheBoardmonthlỵ theboardofaldermenateachregularmeting. -35-

39 VilageofSicilyIsland,Louisiana ScheduleofFinding,;andQuestionedCosts PageThre Recomendation: Theadministrationshouldhaveacuratefinancialstatementspreparedand ManagementResponse:Managementagreswiththisf'mdingandwilcorecthisproblem. presentedtotheboardofaldermenmonthly. 20-7InvoicesSuportingDisbursementNot:Located Condition: Vilage'sfiles.Severalinvoicesthatwereselectedinourdisbursement testworkwerenotmarkedaprovedandpaid. Recomendation: Werecomendthatalinvoicesbemarked"paid"andaproved. Severalsmalinvoicesthatsuportdisbursementscouldnotbelocatedinthe Aditionalcareshouldbetakeninordertoinsurethatalinvoicesbefliedso theycanberetrievedlaterifnecesary. ManagementResponse:Managementagreswiththisfindingandwilcorecthisproblem. 20!H}-8ExpendituresinExcesofBudget Condition Thexpendituresinthegeneralfundwere$27,58andthebudgeted amountwas$21,0.louisianalawalowsfora5%variancein expenditures,thereforetheamountspentwasinexcesoftheamount alowedbylaw. Recomendation WerecomendthatileVilagemonitoritsexpendituresduringtheyearand comparethebudgetotheamountspent.thiscouldbeacomplishedby havingfinancialstatementspreparedeachmonthwhlchcomparerevenues andexpenditurestotheamountbudgeted. ManagementResponse:Managementagreswiththisfindingandwilcorecthisproblem. 20~}{!~.~cdAcountsReceivable Condition Recomendation: TheVilagedoesnotmaintainanagedacountsreceivablelisting. TheVilageshouldmaintainanagedacountsreceivableofitsutility receivables.withthislistingthevilagecouldmoreasilycontrolutility ManagementResponse:Managementagreswiththisfindingandwilinvestigatetodetermineifthe customerswhoarenotcurentontheirutilitypayments. Vilage'sutilitysoftwarecanproduceanagedacountsreceivable PurchaseOrderSy_~tcm Condition TheVilagedoesnothaveawritenpolicyforpurchaseorders 36-

40 VilageofSicilyIsland,Louisiana ScheduleofFindingsandQuestionedCosts PageFour Recomendation TheVilageshouldevelopawritenpolicyforpurchaseorders.Thispolicy wouldreducetowritinghowtheauthoritytopurchaseandthepaymentfor purchaseshouldwork. ManagementResponse:Managementagreswiththisfindingandwilbegintheprocesofadoptinga purchaseordersystem. 20-1DocumentationofSalaries Condition ThepersonelfilesoftheVilagemployesdonotincludedocumentation authorizingthesalariesofemployes. Recomendation Thepersonelfilesofeachemployeshouldincludeinformationconcerning thesalaryofthatemploye,thedatethesalarywasestablishedandwhoset thesalary.thiswilserveasinformationthathepersonpreparingpayrol checkscanuseinthecheckpreparation. ManagementResponse eachemploye'spersonelf'de. Managementagreswiththisfindingandwilprovidethisdocumentationin 20-12LatePenaltiesonOcupationalLicenses Condition Recomendation: Latepenaltiesarenotbeingchargesandcolectedonlatepaymentof OcupationalLicenses. ~Verecomendthatlatepenaltiesbechargedbusineseslatepayingfortheir ocupationalicenses.wealsorecomendthevilagengagethecatahoula ParishScholBoardtocolectheocupationalicensesaswelasthesales ManagementResponse:Managementagreswiththisproblemandwilcorectheproblem. taxesthatheyarealreadycolecting Se~,re~ationofDuties Condition ThenumberofemployesoftheVilageofSicilyIslandoesnotalowfor propersegregationofduties. Recomendation: TheVilageshouldconsideradingemployestoacomplishadequate ManagementRespom~e segregationofduties. Managementrealizesthisisaproblem,butfinancialyitcanotadany moremployes.thevilageplanstodothebestitcanwiththemployes thatitpresentlyhas. -37-

41 SUMARYSCHEDULEOFPRIORAUDITFINDINGS VILAGEOFSICILYISLAND,LOUISIANA JUNE30, isianacomimianceonestion Condition: theformermayordidnotreturnthelouisianacompliancequestionaire fortheperiodendeddecember31,19. Crileria: TheLouisianaComplianceQuestionaireisarequiredpartofinancial auditsofgovernmentalunitsinthestateoflouisiana.itistobeprovidedto theauditorbeforetheybegintheirauditinorderforthemtotesthe acuracyofthevilage'sresponses. Efect TilefailuretosuplytheLouisianaComplianceQuestionairedidnotalow thevilage'sasertionsregardingcomplianceforthefirst18monthsofthe periodtobemade.however,proceduresweredonetothentireperiod underauditoasurethetestingofcompliance. Recomendation TheLouisianaComplianceQuestionairenedstobecompletedforevery ~)9:2ControloverCol]ctiglLofU_ti_ljtyFunds auditperiod. Condition: Duringthecourseofouraudit,itwasnotedthatduringpartoftheperiod Criteria: properlycontrolthecolectionofutilityfunds. underaudit,therewerenotsuficientpersonelorsystemsinplaceto Thereshouldbesuficientpersonelandsystemsinplacetoalowforthe asurancethatalpaymentsandreceiptsarepostedasonasmadeandable Efect tobereconciledeasilyandacurately. validlymadepaymentposted.thebilingconsultantandtownclerkhadto Severalcustomershadtoshowprofofpaymentinordertohavetheir doresearchonscveralmispostingstoensurepropercreditforpayments. Recomendation Abetersystemforacountingforeceiptsnededtobeimplementedand aditionalpersonelnededtobeadedtoestablishasystemofinternal controlsovereceipts.theauditornotesthatatestreceiptfromnearthe cudoftheauditperiodshowedthatsuchsystemhadbenimplementedand CurentStatus: Thisconditionhasbencorected. anaditionalcolectionpersonaded. -3B-

42 SECTIONV-RESPONSE -39-

43 JN-23011:28AMANES.WYCOF VilageofSicilyIsland P,O.Box45 EmaHiliard,MayorProTern SicilyIsland.LA71368 phone3ig ExelenaWilieans,Alderman TimFold,Alderman AneS,Wyeof,MayorShawanerLewis,Clerk Fax RuselBranson,UliliticsSuperintendent RobmlMayo,FireChief EdieNewman,ChiefofPolice January23,201 MilesHopkins,CPA Switzer,Hopkins&Mange Fe~iday,LA NEWalaceBlvd. DearMiles: adthefolowingcomenls: 1donothavemyproposedchangestotheproposed"managementresponses"language,however,IdowantIn ma~ershowever,theyd~dnotcorectheseproblemsorpro'~ideguidancetovilagestaftocorectheseproblems OurpresentacountingtinSwilzer,Hopkins&MangewashiredJuly2720.Wepresentlyhaveanagrement Wehiredanacotntin~,firm,CenlaAreaAgencyonAgeing.June19.20tomakeanefortoresolvethese withswimer.itopklns,sadmmigetoprovideh{onthlyacountingserviceswhichwilentail.(1.)reviewingthevarious a~cotmtrecordsmahuai.edbythevilagecleft.toinsurethaithealy0roprlalerecordsaremaintainedandrequired report~arefiled;(2)preparingamonthlygencrailedger;and(3)as{'s'tingthevilageclerkinrecoucilngalaprapiatc aeotmts.switzerhopk~ngandmangewialsopreparemonthlyfinancialstatementsonatimelybasistoenablemeto pregenthegeathemonthlyboardmeting. Switzer,Hopkins,andMangealongwiththeasistancefiompresentclerkwilgeleverythinginplace,andthesethe tome~noted,problemswiflberesolved "lfisisagoali'veben~ryingtoacomplishforthepastwoyears.ifelconfidenthenewacountingfinof cfoainregardstotheaudilaudi.doingwhatyounededtodoinreonstructhagthetlnartelalandinproviding guidancewithvilagerecords. qlfi~ismyresponsetothefindingsileindediltheauditreporlyourfirmcompleted-iapreciateyourhelpand Sincerely. Anac8.Wyuf -40-