VILAGEOFSLAUGHTER,LOUISIANA JUNE30,198 GENERALPURPOSEFINANCIALSTATEMENTS

Transcription

1 ~,.~Il.EOPY LI:S" GENERALPURPOSEFINANCIALSTATEMENTS VILAGEOFSLAUGHTER,LOUISIANA JUNE30,198 Underprovisionsofst3telaw,this reportis~3pub!it,:~o(:urnenta copyofihereportha:~bensl~bn:ittedtotheah<!~t-~d,or,e~dewed, ei,tityanduth.':-;.'.~p',opr!~;t~public oficial:~."ther~3,':~l;sz,~ailablefcr 13z~bli,.im~p~:c"ionatheBaton Rougeofi;~-eoftlF-~;.ep.is!stiveAuditora~3d,v'l~e~"ear)p~'opd:-.:te,athe oficeofthepa:ishcjerkofcourt. Release[)ate

2 DATACOLECTIONFORM BATONRCUGELA70804 LEGISLATIVEAUDITOR CM8form.Form mayoeusedasasubsOteforthinRETURNto:Lethal]reAndor FOREPORTINGONAUDITSOFSTATEANDLOCALGOVERNMENTANDQUAStPUBL]CENTf'rlES 1F;scalYearF_.qdingCareForThisS~mtsion OateS~t~r~te~12;2,98 Atn:E,qgagementProc~s4ng 6j30!98 P~stOficeBox94397 BatonRouae,Louisiana AudfpenedCovered 2.TypeofReort: E3:Anual (3Other ~3Bienial to ~3SingleAuoit~GAOAuaitStanarosAuait ~3ProgramAudit~Cther Compdadon[]ComplauonlAitestaon VILAGEOFSLAUGHTER AnditeName FirmName 367ChurchStret S~o-eatAdres(NumoerandSb'et JAMESM.CAMPBEL.CPA.APC P.O.BOX29 Mai}ingAdres(PONo.) b.s~-etadre.~.s(numc)erandsket) 8939JefersonHwvIstFlor.SteA.B; Slaug]~ter,LA C;~/ StateZ.Jo M~ilingAdres(PONo.) AudlteContact Name Trde 707 BatonRouqe,LA c.auc~torcontact Name City State T~e ZJo C IJimvR.BakerMayor I480 Telephone Emai~(Op~on~I) Fax JamesM.Campbel TeJeptlone 25' Emal(Opdonal) Fax ComponentUnitsInciudeClV~EhintheReportandforWhichNOSeparateReportWIil8eIsued: Iftherearenomodh~caonstotheaudtsc's~lanc~aloinion,norecx)r[atdeco~dlbons,nontatenalweakneses,noreor~eginstances ofnoncompliance,andnomanaqementle~ter,ctlec~thisbox:donotomoletetherestofthe{~rm. 6.FINANCIALSTATEMENTS a.typeofauc~tredc~tonfinancialstatements.~notac~lic~ble C b.isa'goingconcern'explanatoryparagraphincludedintheauditreportq~3yes'~no cdoanyofthefundshavedeficitfundbalances? d.istherearelatedoar'nfomore? 2~UnqualifiedOpinion~3QualifiedOpinionDAdvemeO~nion~3OisciaimerofOpinion 7,INTERNALCONTROL ~YesnNo Dothecomentsonin~emafcontrolinclude:r~matenalweakneses~reportablecondWonsr~notaolicaDle ~YesI'~No 8.COMPLIANCE [3o0~ecomentson~mOlianoeinclude:[]ile.~alacts 9.MAJqAGEMENTLE'~FER(FindingCap~onandNo.)Resotved[]Yes[~No[]NoLongerA~plicsble Resotved"[~Yes[]No[]NoLongerA~plic~ble []fraud/~r~r~nalacts~notaoc~ioable 10.SCHEDULEOFCURENTYEARNDINGSIQU 98-1,98-2, ESTIONEO $_ Re~olved[]Yesr'qNO[3NoLancerA~:)lic~ble COSTS(FindingCaption Resolved[]Yes ResoWed(~Yes Resolved~3Yes[] ResoNed[3Yes[] []Q[3 []NOLongerAplicable Doanyfindingsadresnepebsm,ethicsvidiat~onsorelatedpart-/tTansac'don~?[3Ye~CK O0any~ndin~,adresv~otatio,"~ofbond(ndent~recovenants? $ Resolved[]Yes~3 nnolongerapfic~able ~3YesdNoNoNoNoNoNoNoNoNo []NoLongerAplicabte []NoLongerAplicable ResoNed Resolved~3Yes []Yes~3No []NoLongerAplicable ~3NoLongerAp[ic:able (3NoLongerAplicable []NoLongerAplicable NoLonger,axoplic~able LOUISIANAGOVERNMENTAUDITGUIDE Revised1/198 PAGE10

3 ~,AgencyNo AUOI'rES~ATURE~ FORUSEBYLEGISLATIVEAUDITOR IProj.No. ifirmno.- DateReportReceived: DateProcesed: ~oatel.~'p-~i (A=NoComents;8=ManagementLeterComentsOnly;c=ConEoi/ComplianceReport(s)Coments;D=CdminaL/FraudActs Repoct:AprovedforRelease Note:Forgradingpurposes,schedulesofimaterialfindingsaretreatedasamanagementleter RankA8CD LOUISIANAGOVERNMENTAUDITGUIDE Revised198 PAGE1

4 IndependentAuditor'sReport CombinedBalanceShet-AlFundTypes CombinedStatementofRevenues,Expenditures andacountgroups andchangesinfundbalances-algovernmental CombinedStatementof FundTypes andchangesinfund Basis)andActual- RevenueFund Expensesand Proprietary CombinedStatementsofCashFlows-Proprietary NotestotheFinancialStatements FundType(EnterpriseFund) SuplementaryInformation CombiningBalanceShet-EnterpriseFund CombiningStatementsofRevenues,Expenses, andchangesinretainedearnings-proprietary CombiningStatementsofCashFlows-Proprietary FundType(EnterpriseFund) Fund(EnterpriseFund) ScheduleofPrincipalOficialsand GeneralFund-GeneralGovernmentalExpenditures Salaries GeneralFund-PublicSafetyExpenditures SpecialRevenueFund-StretandSidewalk otherreportsrequiredbygovernment Fund-PublicWorksExpenditures AuditingStandards PAGE I

5 VILAGEOFSLAUGHTER CONCLUDED IndependentAuditor'sReportonCompliance andoninternalcontroloverfinancial ReportingBasedonanAuditofFinancial StatementsPerformedinAcordancewith IndependentAuditor'sScheduleofJune30,197 GovernmentAuditingStandards IndependentAuditor'sScheduleofFindingsAnd Findings,QuestionedCostsandActionTaken ScheduleofExpendituresofFederalAwards QuestionedCosts AditionalData InsuranceinForce StatisticsonPublicUtilitySystemOperations PAGE

6 (25) CERTIFIEDPUBLICACOUNTANT (25) JAMESM.CAMPBEL APROFESIONALCORPORATION (25) Fax 8939JefersonHwy.FirstFlor.SuitesABC BatonRouge,Louisiana70809 September25,198 INDEPENDENTAUDITOR'SREPORT TheHonorableMayorand vilageofslau~h~er P.O.Box29 MembersoftheBoardofAldermen Slaughter,Louisiana707 Gentlemen statementsofthe Ihaveauditedtheacompanyinggeneralpurposefinancial asofandfortheyearendedjune30,198,aslistedinthetable VilaeofSlauahter ofcontents.thesegeneral-purposefinancials~anementsarethe responsibilityofthevilageofslaughter'smanagement.my responsibilityistoexpresanoplnlononthesegeneralpurpose financialstatementsbasedonmyaudit. auditingstandardsandthestandardsaplicabletofinancialaudit containedingovernmentauditinqstandards,isuedbyth Iconductedmyauditinacordancewithgeneralyacepte ComptrolerGeneraloftheUnitedStates.ThoseStandardsrequir that~planandperformtheauditoobtainreasonableasuranc aboutwhetherthegeneralpurposefinancialstatementsarefreo materialmistatement.anauditincludesexamining,onates basis,evidencesuportingtheamountsandisclosuresinth generalpurposefinancialstatements.anauditalsoinclude asesingtheacountingprinciplesusedandsignificantestimate madebymanagement,aswelasevaluatingtheoveralgenera purposefinancialstatementpresentation.ibelievethatmyaudi providesareasonablebasisformyopinion. referedtoabovepresentfairly,inalmaterialrespects,the financialpositionofthevilageofslaughter,asofjune30, Inmyopinion,thegeneral-purposefinancialstatements 198,andtheresultsofitsoperationsandcashflowsofits proprietaryfundtypesandnonexpendabletrustfundsfortheyear thenendedinconformitywithgeneralyaceptedacounting principles. AmericanInstituteofCertifiedPublicAcountants Arkans~S~ie~of~.ifiedPublicAcountants Memb~of: SocieWof~uisianaCPA's

7 financialstatements,andaditionaldatalistedinthetableof contentsarepresentedforthepurposeofaditionalanalysis,and Thesuplementaryinformation,combiningandacountgroup arenotarequiredpartofthegeneralpurposefinancialstatements ofthevilageofslaughter.suchinformation,exceptforthat portionmarked"unaudited",onwhichiexpresnopinion,hasben generalpurposefinancialstatements;and,inmyopinion,isfairly presentedinalmaterialrespectsinrelationtothegeneral subjectedtotheauditingproceduresapliedintheauditofthe purposefinancialstatementstakenasawhole. isuedareportdatedseptember25,198,onmyconsiderationof thevilageofslaughter'sinternalcontroloverfinancial InacordancewithGovernmentAuditingStandards,Ihavealso reportingandmytestsofitscompliancewithcertainprovisionsof laws,regulations,contracts,andgrants. onthegeneral-purposefinancialstatementsofthevilageof Slaughter,takenasawhole.Theacompanyingscheduleof Myauditwasperformedforthepurposeofforminganopinion expendituresoffederalawardsispresentedforpurposesof aditionalanalysisasrequiredbyu.s.oficeofmanagementand BudgetCircularA-13,AuditsofStates,LocalGovernments,and Non-ProfitOrganizations,andisnotarequiredpartofthe general-purposefinancialstatements.suchinformationhasben subjectedtotheauditingproceduresapliedintheauditofthe general-purposefinancialstatementsand,inmyopinion,isfairly stated,inalmaterialrespects,inrelationtothegeneralpurposefinancialstatementstakenasawhole.

8 COMBINEDBALANCESHET ASETS Cash Cash-restricted Certificatesofdeposit Acountsreceivable Duefromotherfunds Generalfixedasets Fixedasets(net) Amounttobeprovidedforlongtermdebt TotalAsets LIABILITIES BankOverdraft Acountspayable Curentportionoflong-termdebt Duetootherfunds Acruedvacation Meterdeposits Acruedinterestpayable Notepayable Capitaleaseobligations Otherliabilities TotalLiabilities FUNDEQUITY Investmentsingeneral fixedasets Retainedearnings: Unreserved Fundbalance: Unreserved-undesignated Unreserved-designatedfor stretsandsidewalks TotalFundEauitv n P SPECIAL GENERAL REVENUE 2,268 12,801 40,0 106,284 2,613 21,257 8,13.1,17 30, , ,806 67,12 3,52 64,I, _137,417 _(134,804) _(134,804) Theacompanyingnotesareanintegralpartofthistatement

9 PROPRIETARY FUNDTYPE GENERAL ACOUNTGROUPS ENTERPRISEASETSOBLIGATIONS FIXED LONG-TERM GENERAL (MEMORANDUM TOTAL ONLY) 19, , , ,348,64$295,409 5,259 1, ,18,198 5, , , ,284 17,20 3, , ,454, ,259 1,374,472 15,385 3,04 248,78 295,409 5,259 1,627,9 5,259 1, , ,78 150, ,78 295,409 (134,804) $5,259$2,18, ,19

10 COMBINEDSTATEMENTOFREVENUES.EXPENDITURES.ANDCHANGES INFUNDBALANCES-ALGOVERNMENTALFUNDTYPES YEARENDEDJUNE REVENUES GENERAL SPECIAL Taxes $2392 REVENUE (MEMORANDUM TOTAL ONLY) LicensesandPermits Finesandforfeitures Interest Staterevenuesharing $31,02 $54, RuralDevelopmentGrant ,062 5,387 Other Totalrevenues 190,205 28, ,838 32,219 1,197 29,67 3,024 5,502 2,424 EXPENDITURES CurentOperating: Generalgovernment Debtservice Publicsafety Publicworks 102,095 76,131 Principalretirement 18,14 102,095 76,131 Interest Totalexpenditures178,26 121,424 3,139 18, ,650 3, OTHERFINANCINGSOURCES OperatingTransfers OVER(UNDER)EXPENDITURES 1,979 (89,205) FUNDBALANCE 20,0 (7,26) 20,0 Beginingofyear Endofyear $150, ,827 $(134,SOn) (65,59) 73,28 Theacompanyingnotesareanintegralpartofthisstatement 5

11 VILAGEOFSLAUGHTER CHANGESINFUNDBALANCES-BUDGET(GAPBASIS)ANDACTUAL- FORTHEYEARENDEDJUNE30,198 REVENUES Taxes Licensesandpermits Finesandforfeitures Interest Staterevenuesharing OtherTotalrevenues EXPENDITURES CurentOperating: Generalgovernment Publicsafety Publicworks DebtService: Principalretirement Interest Totalexpenditures OperatingTransfers FUNDBALANCE Beginingofyear Endofyear GENERALFUND $24,20 69,0 54,0 2,040 3,024 40,95 193,259 75,10 109,20 $23,92 72,062 5,387 1,838 3,024 3, ,205 76, ,095 VARIANCE- FAVORABLE (UNFAVORABLE) (7,023) (3,054) (1,031) 7, ,30_178,26 6,074 8,959 1,979 3, ,827 $147, ,827 $150,806 Theacompanyingnotesareanintegralpartofthistatement 6

12 BUDGET SPECIALREVENUEFUNDVARIANCE ACTUAL(UNFAVORABLE) $32,0$31,02 (978) 1,50 0 3,50 32,219 1,197 (1,281) (303) 15,375 3,60 18,14 (2,769) 121,424 3, (2,49) (141) 461 (85,475)(89,205) 20,0 20,0 (3,730) $(131,074)$(134,804) (65,59)(65,59)

13 COMBINEDSTATEMENTSOFREVENUES,EXPENSES,ANDCHANGES INRETAINEDEARNINGS-PROPRIETARYFUNDTYPE(ENTERPRISEFUND OoeratinaRevenues YEARENDEDJUNE Gasales Watersales Instalationfes Otherincome Totaloperatingrevenues OneratinaExpenses Salariesandwages Depreciation Dues Employes'retirementexpenses Gaspurchases Insurance Legalandprofesional Maintenance,materials, andsuplies Miscelaneous Printing,stationery, andsuplies Payroltaxes Waterpumpcharge Telephone Truckexpense Uncolectibleacounts Utilities Totaloperatingexpenses ODeratinaIncome Non-oeratinaRevenues(ExDenses NetIncomeBeforeODeratinaTransfers OperatingTransfers NetIncome Retainedearninasatbeainina ofyear Retainedearninasatendofyear Theacompanyingnotesareanintegral 8 ENTERPRISE FUND $163,27 169,526 2,76 14, ,636 4,078 41, ,262 85,20 21,83 6,649 38,2, ,135 3, ,358 3, , ,070 84,56 6,824 74,165 80,989 3,57 20,0 (16,423) 265,21 $248,78 partofthistatement

14 PROPRIETARYFUNDTYPE(ENTERPRISEF COMBINEDSTATEMENTSOFCASHFLOW YEARENDEDJ-t]NE30,198 CashFlowsFromODeratinaActivities Netincome TOTAL Adjustmentstoreconcilenetincome tonetcashprovidedbyoperating (16423) activities: (Increase)decreaseincurentasets: Depreciation Acountsreceivable Badebts Increase(decrease)incurentliabilities Acountspayable Acruedvacation Acruedinterestpayable StateSalesTax NetCashProvidedbvODeratinaActivities Duetotherfunds Customerdeposits CashFlowsFromInvestinaActivities 41, (36,242) Procedsfromlong-termdebt NetCashProvidedbvFinancinaActivities 23,42 NetIncreaseInCash 23,42 294,738 29,07 SuolementalDisclosureofCashFlowInformation Cashpaiduringtheperiodfor Interest Theacompanyingnotesareanintegralpartofthistatement

15 NOTESTOFINANCIALSTATEMENTS NOTE#i TheVilageofSlaughter,LouisianawasincorporatedApril19, SUMARYOFSIGNIFICANTACOUNTINGPOLICIES 1963,andisadministeredbyamayorandthrealdermen.The VilageofSlaughterprovidesthefolowingservicesasauthorized byitscharter:publicsafety,highwaysandstrets,sanitation, recreation,publicimprovements,andgeneraladministrative services. TheacountingpoliciesoftheVilageofSlaughterconformto generalyaceptedacountingprinciplesasaplicableto governmentalunitsonaconsistentbasisbetwenperiods.such acountingandreportingproceduresalsoconformtothe requirementsoflouisianarevisedstatute24:517andtotheguides setforthinthelouisianagovernmentalacountingguideandto theindustryauditguide,"auditsofstateandlocalgovernmental Units,"publishedbytheAmericanInstituteofCertifiedPublic Acountants. Thefolowingisasumaryofcertainsignificantacounting policiesandpractices: FinancialRenortinaEntity Thisreportincludesalfundsandacountgroupswhichare controledbyordependentuponthevilageofslaughter's executiveandlegislativebranches(themayorandtheboard ofaldermen).controlbyordependenceuponthevilageof Slaughterwasdeterminedonthebasisofbudgetadoption, taxingauthority,authoritytoisuedebt,electionor apointmentofgoverningbody,andothergeneraloversight responsibility. FundAcountina TheacountsofthevilageofSlaughterareorganizedonthe basisofundsoracountgroups,eachofwhichisconsidered tobeaseparateacountingentity.theoperationsofeach fundareacountedforwithaseparatesetofself-balancing acountsthatcomprisesitsasets,liabilities,fundequity, revenuesandexpenditures,orexpenses,asapropriate. Governmentresourcesarealocatedtoandacountedforin individualfundsbaseduponthepurposesforwhichtheyare tobespentandthemeansbywhichspendingactivitiesare i0

16 NOTESTOFINANCIALSTATEMENTS NOTE#I:SUMARYOFSIGNIF controled.thevariousfundsaregrouped,inthefinancial statementsinthisreport,intothregenericfundtypesand twobroadfundcategoriesasfolows: GovernmentalFundTYPES GeneralFund-TheGeneralFundisthegeneraloperating fundofthevilageofslaughter.itisusedtoacount foralfinancialresourcesexceptthoserequiredtobe acountedforinotherfunds. SpecialRevenueFunds-The toacountfortheproceds thatarelegalyrestricted purposes.thestretand specialrevenuefundofthe VilageofSlaughter. SpecialRevenueFundisused ofspecificrevenuesources toexpendituresforspecific SidewalkFundistheonly EnterpriseFund-TheEnterpriseFundisusedtoacount foroperations,(a)thatarefinancedandoperatedina manersimilartoprivatebusinesenterprises-wherethe intentofthegoverningbodyisthathecosts(expenses, includingdepreciation)ofprovidingodsorservicesto thegeneralpubliconacontinuingbasisbefinancedor recoveredthroughusercharges;or(b)wherethegoverning bodyhasdecidedthatperiodicdeterminationofrevenues earned,expensesincured,and~ornetincomeis apropriateforcapitalmaintenance,publicpolicy, FixedAsetsandLona-termLiabilities managementcontrol,acountabilityorotherpurposes. Theacountingandreportingtreatmentapliedtothefixed asetsandlong-termliabilitiesisdeterminedbyits measurementfocus. Algovernmentalfundtypeoperationareacountedforona spendingor"financialflow"measurementfocusandonly curentasetsandcurentliabilitiesaregeneralyincluded ontheirbalanceshets İI

17 NOTESTOFINANCIALSTATEMENTS NOTE#i Fixedasetsusedingovernmentalfundtype I I operations(generalfixedasets)areacountedforinthe GeneralFixedAsetsAcountGroupandarerecordedas expendituresinthegovernmentalfundtypeswhenpurchased. TheVilageofSlaughterhasnotcapitalizedpublicdomain ("infrastructure")fixedasetswhichconsistofcertain improvementsotherthanbuildings,includingroads,bridges, sidewalks,anddrainageimprovements.theseasetsare imovableandofvalueonlytothevilageofslaughter; therefore,thenedforcumulativeacountabilityisnot significant.nodepreciationhasbenprovidedongeneral fixedasets,norhasinterestbencapitalized. Long-termliabilitiesexpectedtobefinancedfrom governmentalfundsareacountedforinthegenerallong-term DebtAcountGroup. Theproprietaryfundtypeoperationsareacountedforona costofservicesor"capitalmaintenance"measurementfocus, andalasetsandaliabilities(whethercurentornoncurent)asociatedwiththeiractivityareincludedontheir balanceshets. Depreciationonalexhaustiblefixedasetsusedbythe ProprietaryFundarechargedasanexpenseagainsttheir operationsastheasetsareplacedinservice.depreciation wilbeprovidedovertheasets,estimatedusefullives usingthestraight-linemethod.theestimatedusefulives byasetsclasificationareasfolows: DistributionSystem Equipment Vehicles 40years 12years VilageofSlaughteralsohasanoldistributionsystemfor 5years boththewaterandgasystemsthatarenotreportedor depreciatedonthefinancialstatements.duetotheageof thesetwosystems,thisomisionisimaterialtothe financialstatements. Almaterialfixedasetsarestatedathistoricalcost 12

18 NOTESTOFINANCIALSTATEMENTS VILAGEOFSLAUGHTER NOTE#i:SUMARYOFSIGNIFICANTACOUNTINGPOLICIES,(CONTINUED BasisofAcountin~ Basisofacountingreferstothetimingofrevenueand expenditureorexpenserecognitioninthefinancial statements.basisofacountingrelatestothetimingofthe measurementsmade,regardlesofthemeasurementfocus aplied. Algovernmentalfundtypesareacountedforusingthe modifiedacrualbasisofacounting.theirrevenuesare recognizedwhentheybecomemeasurableandavailableasnet curentasets.propertyandsalestaxes,interestrevenue andvariousintergovernmentalrevenuesaresusceptibleto acrual.fines,licensesandpermitsarenotsusceptibleto acrualbecausetheyaregeneralynotmeasurableuntil receivedincash. Expendituresaregeneralyrecognizedunderthemodified acrualbasisofacountingwhentherelatedfundliability isincured.anexceptiontothisgeneralruleisprincipal andintereston10ng-termdebtwhichisrecognizedwhendue. Theproprietaryfundisacountedforusingtheacrualbasis ofacounting.therevenuesarerecognizedwhentheyare earned,andexpensesarerecognizedwhentheyareincured. AcountsReceivable Uncolectibleamountsduefromcustomersforutilityservices arerecognizedasbadebtsthroughtheestablishmentofan alowanceforuncolectibleacountsathetimeinformation becomesavailablewhichwouldindicatetheuncolectability oftheparticularreceivable. uncolectibleacountswas$5,836forthewaterfundand $1,743fortheGasFund. Thealowancefor 13

19 NOTESTOFINANCIALSTATEMENTS VILAGEOFSLAUGHTER NOTE#i IGN ICIE TheVilageofSlaughterfolowstheseproceduresin establishingthebudgetarydatareflectedinthesefinancial statements: i.aproposedbudgetispreparedand andboardofaldermenpriorto fiscalyear. thebeginingofeach submitedtothemayor 2.Theproposedbudgetispublishedintheoficialjournal andmadeavailableforpublicinspection.apublic 3.Thebudgetisadoptedthroughpasageofanordinance hearingiscaledtobtaintaxpayercoments. priortothecomencementofthefiscalyearforwhichthe 4.Budgetaryamendmentsinvolvingthetransferofundsfrom budgetisbeingadopted. onedepartment,program,orfunctiontoanotheror involvingincreasesinexpendituresresultingfrom revenuesexcedingamountestimatedrequireaprovalfrom 5.Albudgetaryapropriationslapseattheendofeach theboardofaldermen. 6.BudgetsfortheGeneral,SpecialRevenue fiscalyear. Fundsareadoptedonabasis aceptedacountingprinciplesconsistent (GAP). andproprietary withgeneraly 7.Theievelofbudgetarycontrolistotalapropriations. Budgetedamountsareasoriginalyadopted,orasamended bytheboard.onceaproved,thevilageofslaughter's councilcanamendalegalyadoptedbudgetwhenunexpected modificationsarerequiredinestimatedrevenuesand apropriations. 14

20 m~m~m~vt~ancial~tatements NOTE#I OneratinaTransfersInandOut F CIES.(CONTI Advancesbetwenfundswhicharenotexpectedtoberepaid areacountedforastransfers.inthosecaseswhere repaymentisexpected,thetransfersareacountedfor throughthevariousduefromanduetoacounts. AcumulatedUnDaidVacatlon Employesearnvacationandsickleaveatvariousrates dependinguponlengthofemployment.acruedbutunused vacationasofjune30,198foralemployesofthevilage ofslaughterwas$4,151. Totalcolumnsonthecombinedstatements-overvieware captionedmemorandumonlytoindicatethattheyarepresented onlytofacilitatefinancialanalysis.datainthesecolumns donotpresentfinancialposition,resultsofoperations,or changesinfinancialpositioninconformitywithgeneraly aceptedacountingprinciples.sinceinterfundeliminations havenotbenmadeintheagregationofthisdata,suchdata isnotcomparabletoaconsolidation. Encumbrances Encumbranceacounting,underwhichcontractsandother comitmentsfortheexpenditureofmoniesarerecordedin ordertoreservethatportionoftheaplicable apropriation,isnotemployedbythevilageofslaughter. CashFlows ForpurposesoftheStatementofCashFlows,theProprietary Fundconsidersalhighlyliquidinvestments(including restrictedasets)withoriginalmaturitiesoftwelvemonths orlestobecashequivalents. 15

21 NOTE#1 F P Cashincludesdemandepositacountsandinterestbearing demandepositacounts.understatelaw,thevilagemay depositfundsindemandepositacounts,interest-bearing demanddepositacounts,moneymarketacounts,ortime certificatesofdepositwithstatebanksorganizedunder Louisianalawandnationalbankshavingprincipaloficesin Louisiana. NOTE#2 Asumaryofchangesingeneralfixedasetsfolows Land Buildings Equipment Totals 06/30/97 $16,242 41,253 AditionsDeletions $27,685 20,190 17,724 $16, ,914 41,253 16

22 VILAGEOFSLAUGHTER I NOTE@2 Asumaryofproprietaryfundtypeproperty,plant,andequipment E atjune30,197,folows: Right-Of-Way GASFUND 06/30/97AditionsDeletions06/30/.98 DistributionSystem30,0 $1,50 $31~50 $1,50 30,90 Dist.System Construct.Program WATERFUND 06/30/97AditionsDeletions06/30/98 31,50 Equip.&Vehicles $1,302,841$ 51,435 7,479 13,92 15, , $1,316,763 58,635 2,59 AcumulatedDepreciationforProprietaryfundswas$41,095atyear end. TheProprietaryfundshaveoldistributionsystemsthatarenot reportedordepreciatedontheproprietaryfundfinancial materialtothefinancialstatements. statements.duetotheageofthesesystems,thisomisionisnot NOTE#3 TheBondswereisuedunderacomitmentleterisuedbythe E RuralEconomicandComunityDevelopment(formerlyFarmersHome Administration){"RECD"). D~]~n~m~andComtlnJtvDevelopment WaterRevenueBondsisuedtodate Bondsretired $1,391~672 BondsPayableatJune30,

23 VILAGEOFSLAUGHTER I S NOTE#3 Thebondsarepayableasfolows Totalbondsauthorized$1,480,0 datedjune14,196;dueinmonthly instalmentsof$7,578,begining July,197.Interestonlyinthe amountof$72,475wasduejune14,197 Thebondsbearinterestatherateof TheanualrequirementtoamortizealoutstandingWaterRevenue 53/8%,andwilmatureJune14~2036. BondsasofJune30,198,includinginterestpaymentsof $2,509,591areasfolows: YearEnding June30, 19 RevenueBonds Water Lateryears 3,0,7~fl 90,931 AspartoftheBondagrementwithRuralEconomicandComunity Development,theVilageofSlaughterhasagredtocomplywith certaincovenants.theseprimarilyconsistofreportingandaudit requirements,insurancecoverage,restrictionsonaditionaldebt, maintenanceofvariousdepositacounts,andotheradministrative requirements.thevilageofslaughterhasnotcompliedwithsome ofthesecovenants;however,waivershavebenobtainedregarding thesecovenants. NOTE#4:CAPITALEASES TheVilageofSlaughterenteredintoacapitaleaseduringthe fiscalyearendedjune30,195,fortheportionofajohndere Backhoeloaderthatwasnotpaidatacquisition.Thebackhoeis recordedinthegeneralfixedasetgroupatitscapitalizedcost of$37,42.thevilageofslaughteralsosignedacapitalease agrementforthisamount,whichisincludedinthegeneralongtermdebtacountgroup. 18

24 VILAGEOFSLAUGHTER NOTESTOFINANCIALSTATEMENTS NOTE#4 Futureminimumleasepaymentsundertheabovementionedcapital CAPITALEASES(CONTINUED leaseareasfolows: June_30,198 YearEnding Lesamountrepresentinginterest, $5,68 Amount asuminganimplicitefectiverate of7.25% Presentvalueoffutureminimumlease payments NOTE#5:ADVALOREMTAXES Advaloremtaxesatachasanenforceablelienonpropertyon February28ofeachyear.Thetaxesareleviedandactualybiled tothetaxpayersinnovember.biledtaxesbecomedelinquenton January2ofthefolowingcalendaryear. TheVilageofSlaughterbilsandcolectsitsownpropertytaxes usingtheasesedvaluesdeterminedbythetaxasesorofeast FelicianaParish.FortheyearendedJune30,198,taxesof4.76 milswereleviedonpropertywithasesedvaluationstotaling $3,472,480,andwerededicatedforgeneralpurposes. Totaltaxesleviedwere$17,215and$96wasstiluncolectedat June30,198. NOTE#6:INTERFUNDRECEIVABLEANDPAYABLEBALANCES RECEIVABLES $106,284 INTERFUND INTERFUND $64,961 PAYABLES 8,13 ~_106,284 29,547 3,63 19

25 NOTESTOFINANCIALSTATEMENTS VILAGEOFSLAUGHTER NOTE#7:DEFINEDBENEFITPENSIONP Subst part/ costpayr~ antialyalemployesofthevilageofslaughter cipateinthemunicipalemployes'retirementsystem("mers") 198, sharing,multipleemployerpublicretirementsystem.the $143, 763. iforemployescoveredbymersfortheyearendedjune30, was$76,538;thevilageofslaughter'stotalpayrolwas Generalyalful-timeemployesareeligibletoparticipate. TheemployesparticipatingintheMERSmayretirewithful benefitsatagesrangingfromanyageuponcompletingthirtyears ofcreditableservicetoagesixtyuponcompletingtenyearsof creditableservice.thebasicanualretirementbenefitfor substantialyalmembersisequaltothrepercentofaverage compensationtimesthenumberofyearsofcreditableservice. Theaveragecompensationisdefinedasthemember'saverageanual earnedcompensationfortheperiodofthirty-sixconsecutive monthsofemploymentduringwhichthemember'sagregatearned compensationwasgreatest.thesystemsalsoprovidedeathand disabilitybenefits.benefitsareestablishedbystatestatue. CoveredemployesarerequiredbyStatestatutetocontribute 5.0%oftheirsalarytotheplan.TheVilageofSlaughterwas requiredbythesamestatutetomakecontributionsof3.25percent ofthecoveredsalariesduringtheyearendedjune30,198. The"pensionbenefitobligation"isastandardizedmeasureofthe presentvalueofpensionbenefits,adjustedforthefectsof projectedsalaryincreasesandstep-ratebenefits,estimatedtobe payableinthefutureasaresultofemployeservicetodate. Themeasure,whichistheactuarialpresentvalueofcredited projectedbenefits,isintendedtohelpusersasesthesystem's fundingstatusonanongoing-concernbasis,asesprogresmade inacumulatingsuficientasetstopaybenefitswhendue,and makecomparisonsamongpublicemployeretirementsystemsand employers.thesystemdoesnotmakeseparatemeasurementsof asetsandpensionbenefitobligationforindividualemployers. 20

26 VILAGEOFSLAUGHTER F NOTE#7:DEFINEDBENEFITPENSIONPLAN,(CONTINUED TheSystemisuesananualpubliclyavailablefinancialreport whichincludesfinancialstatementsandrequiredsuplementary informationforthesystem.thatreportcanbeobtainedby contactingthemunicipalemploye'sretirementsystemoflouisiana at7937oficeparkboulevard,batonrouge,louisiana,70809,or NOTE#8 bycaling(504) Gas,andwaterservicesareprovidedbytheVilageofSlaughter andarefinancedbyusercharges.thesignificantfinancialdata fortheyearendedjune30,198,fortheseservicesisas folows: Operatingrevenues Operatingexpenses $171, ,917 Gas Depreciation Operatingincome(los) Operatingtransfers (20,0) 25, $178,035 Water 40,345 19,153 Netincome(los) Property,plantand equipmentaditions 1,806 (18,29) 58,82 Revenuebondsandnotes NOTE#9:RESTRI payable 1,391,6721,391,672 36,242 36,242 Inacordancewiththeindenturegoverningthewaterrevenue bonds,cashisperiodicalydepositedintoacountsadministered byatrustebank.thesebondsareadirectliabilityofthe WaterUtilityFund,andareservicedbytheearningsfromthe Fund.Depositsaremadetothesetrustacountsinacordance withthefolowingrequirements: l~the"waterrevenuebondandinterestsinkingfund" requiresthatsuficientcashbeacumulatedtometthe anualinstalmentofbondprincipleandinterestwhich becomesdueduringtheyear. 21

27 VILAGEOFSLAUGHTER NOTESTOFINANCIALSTATEMENTS NOTE#9:RESTRICTEDASETS,(CONTINUED 2.The"waterrevenuebondreservefund"issuplementalto theacountreferedtoin(i)above.theminimumamount tobedepositedintothisacountis5%oftheamounts obligatedtobedepositedintothesinkingfundacount, andshalcontinuemonthlyuntilthereisondepositasum equalto$90,931,orthehighestcombinedprincipleand interestrequirementinanysucedingfiscalyear, 3.The"waterdepreciationandcontingencyfund"requiresa acordingtothebondagrement. monthlypaymentof$45. NOTE#I0 AmountsduefromothergovernmentalagenciesatJune30,198 DUEFROMOTHERGOVERNMENTALAGENCIES consistofthefolowing: EastFelicianaParishPoliceJury-SalesTax NOTE#i:DEDICATEDREVENUES StretsandSidewalksSPecialRevenueFund TheVilageofSlaughtereceives3.8181%percentofEast FelicianaParishsalestaxcolections.Theseprocedsare dedicatedtothegeneralmaintenanceandrepairsofstrets andsidewalksinthevilageofslaughter.thevilageof Slaughterecognized$31,02ofsalestaxprocedsduringthe yearendedjune30,198. NOTE#12:CASHANDINVESTMENTS AtJune30,198,thecaryingamountsoftheVilageof Slaughter'sdepositswereasfolows: DemandDepositAcounts/SavingsAcounts CertificatesofDeposit $291,71 40,0 2 31,71

28 V NOTE#12:CASHANDINVESTMENTS,(CONTINUED Thesedepositsarestatedatcost,whichaproximatesmarket. Understatelaw,thesedepositsmustbesecuredbyeitherfederal depositinsuranceorthepledgeofsecuritiesownedbyafiscal agentbank.themarketvalueofthepledgedsecuritiesplusthe federaldepositinsurancemustataltimesequaltheamounton depositwiththefiscalagentbank.atjune30,198,thevilage ofslaughterhad$31,71indeposits(colectedbankbalances). Ofthesebankbalances,$20,0wascoveredbyfederaldeposit insuranceand$131,71wassecuredbycolateralownedbythe fiscalagentbank.themarketvalueofthecolateralwas $196,619. NOTE#13:LITIGATION AtJune30,198,theVilageofSlaughterwasinvolvedina lawsuitconcerninganalcohollicense.thevilageofslaughter's legaladvisorisunabletoestimatetheultimateresolutionof thismater. 23

29 SUPLEMENTARYINFORMATION 24

30 ASETSCash Cash-restricted Acountsreceivable Fixedasets,(net) TotalAsets LIABILITIES Acountspayable Duetootherfunds Acruedvacation Meterdeposits Acruedinterestpayable Notepayable OtherLiabilities TotalLiabilities FUNDEQUITY Retainedearnings Unreserved V P TotalLiabilitiesandEauitv 25 $5, ,672 24,089 1,320,894 1,475, , ,412,02 63,307 63,307 $193,48$19, ,672 7,017 31,106 27,7501,348,64 28,251,703,564 3,29,i,8, ,74 185, , , ,454,76 248,78 248,78

31 VILAGEOFSLAUGHTER V~ARENDEDJUNE30,198 E(ENTERPRI S WATER GAS TOTAL Gasales Watersales Instalationfes Otherincome $169,526 2,090 $163,27$163,27 ODeratinaExmenses Totaloperatingrevenues 178,035 6, , ,601 7, ,636 14,067 2,76 Salariesandwages Depreciation Dues Employes'retirementexpenses Gaspurchases 40,3450 2,039 Legalandprofesional Maintenance,materials, Insurance 12, ,324 85,20 2, , ,078 9,102 Miscelaneous Printing,stationery, andsuplies 21,173 3,325 85,20 21,83 1,262 Payroltaxes Waterpumpcharge andsuplies 1, ,15 1,46 38,328 6,649 Telephone Truckexpense 127 2,410 2,091 Uncolectibleacounts 679 1,892 4,135 Utilities 1,534 ODe~atinaIncome Totaloperatingexpenses 10,370 19,153 2,073 1,539 (1,096) 679 3, , , ~i,i ~_q2~70 3,07397 n-oderatlnq~evenues%~xuens~_/_ 58,.82 25,684 84,56 Debtservice-principal Interestexpense Netnon-operatingrevenues (73,973) (3,138) (3,686) (6,824) (expenses) (7,!) (Z,878)<80,98Z).(192)(74,165) NetIncome OperatingTransfers (18,29) 21,806 3,57 (18,29) {2p,0o0){20,09_t 1,806 (16,423 ofyear 81, ,

32 COMBININGSTATEMENTSOFCASHFLOWS PROPRIETARYFUNDTYPE(ENTERPRISEFUND YEARENDEDJUNE CashFlowsFromODeratinaActivities Netincome Adjustmentstoreconcilenetincome tonetcashprovidedbyoperating activities: Depreciation Baddebts (Increase)decreaseincurentasets Acountsreceivable Increase(decrease)incurentliabilities Acountspayable Acruedvacation StateSalesTax Acruedinterestpayable Duetotherfunds Customerdeposits NetCashProvidedbvODeratinaActivities NetIncreaseInCash CashatBeaininaofYear CashatEndofYear SumDlementalDisclosureofCashFlowInformation Cashpaidduringtheperiodfor: Interest 27 $(18,29)$1,806 40,345 2,073 (6,307) 1, ,230 1,031 24,062 (36,242) (36,242) 23,42 23, ,096) 8,818 2, , ,835 1,242 17,835 i19, , , ,489 72,475. 1,47~2

33 $(16423) , ,702 (36,242) (36,242) 23,42 23,42 294,738 29,07 73,947 28

34 SCHEDULEOFPRINCIPALOFICIALSANDSALARIES YEARENDEDJUNE JimyR.Baker,Mayor June30,198 YearEnded JoyceZachary,Alderman 4,80 BobieBourgeois,Alderman 680 RobertJackson,Alderman 680 6,

35 YEARENDEDJT/ME30,198 Dues Insurance I Healthinsurance $ Legal 1, Maintenance&repairs Materials&suplies 3, Miscelaneous Municipalemployes'retirement 1,02562 Oficeexpense 1,592 Payroltaxes 2,609 Printing Profesionalservices 2, Truckexpenses 1,753 Telephone 3,09 Utilities 2,045 Wagesandsalaries 1,505 RuralDevelopmentGrant 2,092 Total 23,

36 YEARENDEDJUNE30,198 GENERALFUND GENERALFUND-PUBLICSAFETYEXPENDITURES AMOUNT PublicSafety Police: Salaries.Payroltaxes Gas,oil&autoexpenses $42,043 Utilities 3,79 Telephone 6,856 Repairs&maintenance 1,787 Insurance Oficesuplies 2,93476 Miscelaneous 1,024 Materials&suplies 2,212 Retirement 2,76 2,970 Fire: TotalPolice Salaries 76, Payroltaxes Gas,oil&truckexpenses Utilities Telephone Insurance Oficesuplies Miscelaneous Materials&suplies TotalFire TotalPublicSafety 25,27 31

37 VILAGEOFSLAUGHTER E YEARENDEDJUNE30,198 Salaryexpense Payroltaxes L AMOUNT Retirementcontributions Healthinsurance Gas,oilandtruckexpenses Utilities Repairs&maintenance Profesionalservices Insurance Oficesuplies Legal Miscelaneous Materialsandsuplies TotalExpenditures 32

38

39 SCHEDULEOFINDINGSANDOUESTIONEDCOSTS SUMARYOFAUDITRESULTS YEARENDEDJUNE i.theauditor'sreportexpresesanunqualifiedopinionon thegeneralpurposefinancialstatementsofthevilageof 2.Fourreportableconditionsdisclosedduringtheauditofthe Slaughter. financialstatementsarereportedinthescheduleoffindings andquestionedcosts.noneoftheconditionsarereportedas 3Noinstancesofnoncompliancematerialtothefinancial amaterialweaknes. statementsofthevilageofslaughterwerediscloseduring theaudit. 3

40 (25) (25) CERTIFIEDPUBLICACOUNTANT JAMESM.CAMPBEL (25) Fax 8939JefersonH~'.'y.FirstFlor,SuitesABC APROFESIONALCORPORATION BatonRouse.Louisiana70809 September25,198 P ACORDANCEWITHGOVERNMENTAUDITINGSTANDABDE AUDITOFINANCIALSTATEMENTSPERFORMEDT~ REPORT TheHonorableMayorand VilageofSlaughter PostOficeBox29 MembersoftheBoardofAldermen Slaughter,Louisiana707 Gentlemen: VilageofSlaughterasofand,fortheyearendedJune30,198, andhaveisuedmyreporthereondatedseptember25,198.i IhaveauditedthegeneralpurposefinancialstatementsofThe conductedmyauditinacordancewithgeneralyaceptedauditing standardsandthestandardsaplicabletofinancialaudits containedingovernmentauditingstandards,isuedbythe ComptrolerGeneraloftheUnitedStates. Compliance VilageofSlaughter'sfinancialstatementsarefreofmaterial mistatement,iperformedtestsofitscompliancewithcertain Aspartofobtainingreasonableasuranceaboutwhetherthe provisionsoflaws,regulations,contracts,andgrants, noncompliancewithwhichcouldhaveadirectandmaterialefecton thedeterminationofthefinancialstatementamountṣhowever, providinganopiniononcompliancewiththoseprovisionswasnotan objectiveofmyauditand,acordingly,idonotexpressuchan opinion.theresultsofmytestsdisclosedinstancesof noncompliancethatarerequiredtobereportedundergovernment AuditingStandardswhicharedescribedintheacompanyingschedule offindingsandquestionedcostsasitems98-1through

41 INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEANDONINTERNAL CONTROLOVERFINANCIALREPORTINGBASEDONAN (Continued) InternalControlOverFinancialReDortin~ ofslaughter'sinternalcontroloverfinancialreportinginorder todeterminemyauditingproceduresforthepurposeofexpresing Inplaningandperformingmyaudit,IconsideredTheVilage myopiniononthegeneralpurposefinancialstatementsandnoto provideasuranceontheinternalcontroloverfinancialreporting. However,Inotedcertainmatersinvolvingtheinternalcontrol overfinancialreportinganditsoperationthaticonsidertobe reportableconditions.reportableconditionsinvolvematers comingtomyatentionrelatingtosignificantdeficienciesinthe designoroperationoftheinternalcontroloverfinancial reportingthat,inmyjudgement,couldadverselyafectthevilage ofslaughter'sabilitytorecord,proces,sumarize,andreport financialdataconsistentwiththeasertionsofmanagementinthe generalpurposefinancialstatements.reportableconditionsare describedintheacompanyingscheduleofindingsandquestioned costsasitems98-1through98-4. operationofoneormoreoftheinternalcontrolcomponentsdoes notreducetoarelativelylowleveltheriskthatmistatementsin Amaterialweaknesisaconditioninwhichthedesignor amountsthatwouldbematerialinrelationtothegeneralpurpose financialstatementsbeingauditedmayocurandnotbedetected withinatimelyperiodbyemployesinthenormalcourseof performingtheirasignedfunctions.myconsiderationofthe internalcontroloverfinancialreportingwouldnotnecesarily disclosealmatersintheinternalcontrolthatmightbe reportableconditionsand,acordingly,wouldnotnecesarily disclosealreportableconditionsthatarealsoconsideredtobe materialweakneses.however,ibelievenoneofthereportable conditionsdescribedaboveisamaterialweaknes. comite,managementandfederalawardingagencies,andpasthroughentities.however,thisreportisamaterofpublic Thisreportisintendedfortheinformationoftheaudit recordanditsdistributionisnotlimited. 35

42 (25) CERTIFIEDPUBLICACOUNTANT (25) (25) Fax 8939JefersonHwy.FirstFlor.SuitesABC JAMESM.CAMPBEL APROFESIONALCORPORATION BatonRouge.Louisiana70809 September25,198 E30.197FINDINGS.OUESTIONEDCOSTS INDEPENDENTAUDITOR'SCHEDULEOF THEVILAGEOFSLAUGHTER 97-IFINDING:(NotResolved andacountingoffixedasets,however,aperiodicinventoryis notconductedtocomparethefixedasetsonhandwiththedetailed TheVilageofSlaughterdoeshaveasystemfortherecording listingmaintainedbythevilageofslaughterpersonel.thismay resultinalosofcontroloverfixedasets. Recomendation adedtothevilageofslaughter'slistingofixedasets.this listshouldidentifythelocationoftheasetsandtheresponsible Athetimeofpurchase,fixedasetsshouldbetagedand employe.eachdepartmentshouldsubmitaphysicalinventoryto thetownclerkonananualbasis,atwhichtimeitshouldbe comparedtotherecordsofthevilageofslaughter.misingor unacounted-forasetshouldbeinvestigated.asetsthatcanot belocatedshouldbereportedtotheboardofaldermen,statingthe factsandcircumstancesregardingthemisingitem. Mana~ement'sResponse investigated. Ananualinventorywilbetakenanddiferences ActionTaken: posible. Ananualinventoryisplanedtobetakenassonas 36

43 E30,197FINDINGS,OUESTIONEDCOSTS E30.198(Continued 97-2FINDING:~Resolved andcomunitydevelopment(formerly werenotpreparedandsubmitedfor Thequarterlyfinancialreports requiredbytheruraleconomic FarmersHomeAdministration) Recomendation: theyear. requiredbythebondagrement. Alrequiredfinancialreportshouldbesubmitedtimelyas ManaQement'sResponse timely Alrequiredfinancialreportswilbepreparedandsubmited Ȧlquarterlyreportswerepreparedandsubmitedtimely 97-3FINDING:CNotResolved controlisnotposiblebecauseoflimitedpersonel.onemploye receivespayments,entersaltransactionsonthecomputerized Adequatesegregationofdutiesrequiredtoimproveinternal acountingsystemandrecordsjournalentries. Recomendation: providesegregationofdutiesifposible. Managementshouldreviewalinternalcontrolproceduresand Manaement'sResnonse improvedwhereposible. Areviewofinternalcontrolprocedureswilbemadeand ActionTaken: policedepartment. Anaditionalemployewashiredbutworksprimarilywiththe 37

44 E30.197FINDINGS.OUESTIONEDCOSTS JUNE30,198(Continued 97-4FINDING:{Resolved Recomendation Depositstothebankacountsarenotalwaysdepositedaily Manaement'sResnonse BankAcountDepositshouldbemadeeachday BankAcountDepositswilbemadedailyifposible. Depositsarenowmadedaily 97-5FINDING:(Resolved thegasenterprisefundareprovidedinthebudget.however,the SpecialRevenueFundandtheGasEnterpriseFunddonothave TransfersbetwentheGeneralFund,SpecialRevenueFund,and onlybyjournalentryinthevariousduetoanduefromacounts. separategeneralledgers,thereforethesetransfersarerecorded Recomendation RevenueFundandtheGasEnterpriseFundsothatseparate acountingforeachfundwilbefacilitated. SeparategeneraledgershouldbestablishedfortheSpecial ActionTaken: Separategeneraledgersforeachfundhavebenestablished 38

45 September25,198 INDEPENDENTAUDITOR'SCHEDULEOF 98-1FINDINGL andacountingoffixedasets,however,aperiodicinventoryis notconductedtocomparethefixedasetsonhandwiththedetailed TheVilageofSlaughterdoeshaveasystemfortherecording listingmaintainedbythevilageofslaughterpersonel.thismay resultinalosofcontroloverfixedasets. Recomendation tothevilageofslaughter'slistingofixedasets.thislist shouldidentifythelocationoftheasetsandtheresponsible Atthetimeofpurchase,fixedasetshouldbetagedandaded employe.eachdepartmentshouldsubmitaphysicalinventoryto thetownclerkonananualbasis,atwhichtimeitshouldbe comparedtotherecordsofthevilageofslaughter.misingor unacounted-forasetshouldbeinvestigated.asetsthatcanot belocatedshouldbereportedtotheboardofaldermen,statingthe factsandcircumstancesregardingthemisingitem. Manaement'sResponse 98-2FINDING: Ananualinventorywilbetakenanddiferencesinvestigated. controlisnotposiblebecauseoflimitedpersonel.onemploye receivespayments,entersaltransactionsonthecomputerized Adequatesegregationofdutiesrequiredtoimproveinternal acountingsystemandrecordsjournalentries. Recomendation providesegregationofdutiesifposible. Managementshouldreviewalinternalcontrolproceduresand Manaement'sResponse improvedwhereposible. Areviewofinternalcontrolprocedureswilbemadeand 39

46 INDEPENDENTAUDITOR'SCHEDULEOF E50.198(Continued 98r3FINDING: quotesratherthanthrefaxorphonequotes.inadition,fire hydrantinstalationcosting$13,464waspurchasedwithonlytwo Purchaseofequipmentcosting$7,20wasmadewithonlytwo quotesandoficeconstructiontotaling$15,120wasincuredusing publicworksfundwithoutadvertisingforbids. Recomendation bidspriortopurchasingfixedasetsandbeginingconstruction projects. Managementshouldobtainalrequiredquotesoradvertised ManaoementResponse Threquoteswererequestedforthefirehydrantinstalation, howeveronlytwowerereceivedpriortopurchase.theoficewas Twoquoteswereobtainedfortheequipmentcosting$7,20. constructedusingemployesofthevilageofslaughter.al documentationrequestedbytheruraleconomicandcomunity Developmentagencywasobtainedandsubmitedtothempriorto disbursement. 98-4FINDING: integratedwiththegeneralledgersystem,listingeachticket isued.however,periodicreconciliationshavenotbenmade Policedepartmentfinesarerecordedusingaprogramnot reconcilingtotalticketsisuedwithtotalfinescolected. Recomendation voided,finesentothestateforcolection,finesforwhich colectedshouldbemadeacountingforfinesdismised,fines Periodicreconciliationoftotalfinescomparedtofines warantshavebenisuedandanyotherreconcilingitems. ManaementResPonse thepolicedepartment.thisreconciliationwilbecompletedby thisemploye. Anaditionalemployehasbenhiredtoworkprimarilywith 40

47 FORTHEYEARENDEDJUNE30,198 FederalGrantor GrantorProgram Pas-Through Title Federal Number CFDA Grantor's Through Number Pas- Expenditures atjune30, WaterandWaste 198 DisposalSystem RuralComunities for OficeofJustice N/A 34,464 Programs-CopsGrant N/A 20,145 54,609 41

48 JUNE30,198 (UNAUDITED) POLICY NAMEOFINSURER Fire&ExtendedCoverage-Building& AutomobileLiability Contents MasachusetsBayInsurance Company NationalUnionFireInsurance 06/12/98$170,0 GeneralLiability Company NationalUnionFireInsurance 12/13/971,0,0 LawEnforcement ProfesionalLiabilityNationalUnionFireInsurance Company 12/13/972,0,0 PublicOficials Company 1/13/972,0,0 ErorsandOmisions Liability NationalUnionFireInsurance Worker'sCompensationLAMunicipalRiskManagement01/01/98Statutory Company 12/13/971,0,0 PublicEmployesBondFidelityandDeposit PublicEmployes 10,0 Boiler&Machinery DishonestyBond EmployersMutual 07/12/98 10,0 Equipment HartfordSteamBoiler InspectionInsuranceCo. 09/12/98 125,0 43

49 JUNE30,198 (UNAUDITED) STATISTICSONSYSTEMOPERATIONS (a)asofjune30,198,thenumberofmeteredcustomerswas346and 546forthegasandwatersystems,respectively.Therewereno unmeteredcustomersforeitherthegasorwatersystemsat (b)thefolowingratescheduleswereinefectduringthefiscal June30,198. yearforgasandwater: 1.Gas- Rateper1,0 MinimumCharge CubicFet Over50CubicFet/MCF $i Water- Rateper1,0 First3,0galonsorles Next8,0galons/Mgal $13.0 Galons OverIi,0galons/Mgal