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Transcription

1 I~:~cum ent l~eentitya:(i;~. Ac~:.~.cf; ;:,i:., i, ="~ "~'mitedto ' e o POrtis ~;v,~i!, ;~', ~ ~: ~ ;,i,'.~s. The uge oi!i:.2cf~:. ~.;~ :"~;~ '~:B~.'.on approprlat-e ' attie o~firo ~f,, -:.ur,:,~h(re ~~,,2j;c;rtsilclc;~ oi*courl:. ~Release Date _[)_.~:

2 TO W N OF OLLA O LLA,LO U ISIA N A * The Town ofo lla w as incorporated under the Law rason A ctin A ugustof The Tow n operates under the M ayor-board of A ld~rm al~form of governm ent. The Tow n provides the follow ing significam services to its residents asprovided by itscharter:public safety (police and fire),highwaysand streets,sanitation,utilities(waterand sewer selvices)/aud generaladm inistrative functions,including coordination ofrelated serviceswith Parish,State and Federal governing bodies.

3 Towno~ Ofa,Louisiana :Fableof Can~rnts June30,2000 _ Page No. ndependentauditor's ReportO n G eneralpurpose FinancialStatem ents ndependentauditor's ReportO n C om pliance And O n InternalC ontrolo verfinancial Reporting Based O n An AuditO ffinancialstatem ents Perform ed In Accordance W ith G overnm entauditing Standards GeneralPurpose FinancialStatements(Combined Statements Overview): Com bined Balance Sheet-A lfund Types And AccountG roups C om bined Statem ento frevenues,expenditures,and C hanges In Fund Balances -.All G overnm entalfund Types StatementOfRevenues,Expenditures,And Changes In Eund Balances (BudgetVsActual) G eneralfunds Statem ento frevenues Types-Enterprise Fund Expenses,And Changes In Retained Earnings -A lproprietary Fund 8 Statem ento fcash [:low s -A lproprietary Fund Types -Enterprise Fund Notes To FinancialStatem ents Notes To O Ila Cem etery Board FinancialStatem ents O findividualfunds And AccountG roups: G eneralfund Balance Sheet StatementOfRevenues,Expenditures,And ChangesIn Fund Balance Budget(GAAP Basis) Vs.Actual Schedule OfRevenue Budget(GAAP Basis)Vs.Actual Schedule OfExpenclituresBudget(GAAP Basis)Vs.Actual CapitalProjectFund Com bining Balance Sheet Com bining Statem entofrevenues,expenditures,and Changes In Fund Balance Proprietary Fund Types -Enterprise Funds Balance Sheet S~atem entofrevenues,expenses,and Changes in Retained Earnings -A lproprietary Fund Types Statem entofc ash Flow s G eneralfixed Assets AccountG roup Statem entofg eneralfixed Assets Com ponentunitf:inancialstatem ents O lla C em etery Board Com bining Balance Sheet

4 Town of Ofa,Louisiana rl'a~feof Contents (Continued) June30,2000 Page No: Com bining Statem ento frevenues,expenditures And Changes In Fund Balance Schedule O ffindings A rid Q uestioned C ost M anagem ent's Sum m ary O fprioryearfindings

5 JOH N R.VERCH ER PC Certifiec(Pu~(icAccountant P.O.Box 1608 Jena,Louisiana Tel:(318) Fax:(318) The ltonorable Benard M iller,m ayor and M em bersoftile Board ofa lderm en O lla.i.ouisiana 1 /lave audited (lie accom panying general-purpose financialstatem ents of the Town of O lla,louisiana,as of June 30, 2000, and for the year then ended, as listed in the table of contents. These general purpose financial statem ents are the responsibility of the Tow n of Olla,Louisiana,m anagem ent. M y responsibility is to express an opinion oilthese general-purpose financialstatem entsbased on m y audit. 1 conducted my audit in accordance w ith generally accepted auditing standards and Governm ent Auditing Standards,issued by 'the C om ptrollerg eneralof the U nited States. Those standardsrequire thatiplan and perform the audii to obtain reasonable assurance about w hether the general purpose financial statem ents are free of m aterial m isstatem ent. A n auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the generalpurpose financialstatem ents. A n audit also includes assessing the accounting principles used and significant estim a(es m ade by m anagem ent,as wellas evaluating the overallfinancialstatem entpresentation. I believe thatm y auditprovidesa reasonable basisfor m y opinion. In m y opinion,tile generalpurpose financialstatem entsreferred to above presentfairly,in allm aterialrespects, thc financialposition oftile Tow n ofo lla,louisiana,asof June 30,2000,and the resultsofitsoperationsand the cash [low ofitsproprietary fund type forthe yearthen ended in confornrity w ith generally accepted accounting principles. In accordance w ith Goverum entauditing Standards,1have also issued m y reportdated Septem ber25, 2000,on m y cousideration of Tow n ofo lla,louisiana's internalcontrolover financialreporting and m y tests ofitscm npliance w ijb cerlain provisions oflaw s,regulations,contractsand granls. M y audit was conducted for the purpose of form ing an opinion on the general-purpose financial statem ents taken as a w hole. The com bining and individualfund group financialstatem ents,schedules and graphs listed in the table ofcontentsare presented ibrthe purpose ofadditionalanalysisand are nota required partof the general-purpose financialstatementsofthetown ofolla,louisiana. Such information hasbeen subjected to theauditing procedures applied ilthe auditof the generalpurpose financialstatem ents,and in m y opinion, respectsin relation to the generalpurpose financialstatem entstaken asa w hole. is fairly presented in allm aterial Septem ber25,2000 Jeua.Louisiana MEMBER AMERICAN INSTITUTE Or'CERTIFIE0 PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

6 JO H N R.VERCH ER PC Certi~iecfPubfi'cAccountant P.O.Box 1608 Jena~Louisiana Tel:(318) NDEI'ENDENT AUDITO R 'S REPO RT O N CO M PLIANCE AN D O N INTERNA L CO NTRO l.o VER N N AC C O R D A N C E W ITH G O V ER N M EN T AI]D ITIN C.~qT AN D AR D.q The Ilonorable Benard M iller,m ayor and M em bersof th e Board of A lderm en O lla.louisiana 1have audited th e general-purpose financialstatem ents of the Tow n ofo lla,louisiana as of and for the year ended June 30,2000 and have issued m y reportthereon dated Septem ber25,2000. Iconducted m y auditin accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm ent A ~dith ~g Standards,issued by the Com ptrollergeneralof the United States. A s partof obtaining reasonable assurance aboutw hether Tow n of O lla,louisiana's generalpurpose financial statelnents are free of m aterial m isstatem ent, ] perform ed tests of its com pliance w ith certain provisions of laws, repulations, contracts and grants, noncolnpliance w ith w hich could have a direct and m aterial effect on the determ inalion of financialstatem ents am ounts. H ow ever,providing an opinion on com pliance w ith th ose provisions wasnotanobjectiveofmyauditand,accordingly,ido notexpresssuch an opinion. Theresultsofmy testsdisclosed no instancesofnoncom pliance th atare required to be reported underg overnm enta uditing Standards. InternalControlO verfinancialreporting htplanning and perform ing my audit,1considered Town of O lla, Louisiana's internalcontrolover financial ~el,orting in order to determ ine nay auditing procedures for the purpose of expressing m y opinion on th e financial stalem ents and not to provide assurance on th e internal control over financial reporting. M y consideration of the internalcontrolover financialreporting w ould notnecessarily disclose allm atters in th e internalcontrolover financial Jeporfing thatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in which the design or operation of one or lnore of th e internalcontrolcom ponents does notreduce to a relatively low level risk that m isstatem ents in am oum s thaiwould be m aterialin relation to the generalpurpose financialstatem ents being audited m ay occurand not bc detected w ith in a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. Inoted no m ailers involving th e internal control over financial reporting and its operation that I consider to be m aterial w eaknesses. Thisreportis intended fortile inforlnation of the Tow n of O lla'sm anagem entand Legislative A uditor'so ffice wever,thisreportisa m atterofpublic record and itsdistribution isnotlim ited. Jc la,louisiana Septenabcr25,2000 _ MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA C ERTIFIED PUBLIC ACCOUNTANTS

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8 TOW N OF OI.,LA,LOUISIA NA COM BIN ED BA LA N CE SIIEET A LL FUN D "IYPES A N D A CCO UN T GRO UP ]UNE 30,2000 G overnm entatfund _ Types G eneral Fund Capital Projects A SSETS Cash Investments(AtCost) Receivables: C ustom eraccounts Receivable O therreceivables Restricted Assets: Cash Investm ents G eneralfixed Assets Plant& Equipm ent Construction In Progress Accum ulated Depreciation Am ountto Be Provided ForRetirem ento fg enerallong-term D ebt TO TA L A SSETS 23, ,615 7, $ 319,013 $ LIABILITIES & FUND EQ UITY LIA B ILITIES Accounts Payable O verdraft Payable From Restricted Assets Long-Term Payables: Revenue Bonds Notes Payable TO TA L LIA BILITIES $ 7, ,6(!. 7 _. $ Fund Equity Contributed C apital Investm entin G eneralfixed Assets R etained Earnings: Reserved Unreserved fund Balance Reserved ForUnreserved/Undesignated $ -g- - g. ~:~~!.;_5.06 TOTAL FUND EQ UITY TOTAL LIABILITIES & FUND EQ UITY $. $ 3jl,5QA $ 319,013 $ The accom panying notes are an integralpartofthis statem ent 4

9 Proprietary Fund~ pe Enterprise Fund A ccount G roup G eneral Fixed A ssets G eneral Lo. n9 -l'erm Debt Total (Mem orandum Only) Com ponent Unit Cem etery Board , ,942 2,827 22, ,791 7,289 1,139,323-0~ 40, ,177 3,010, ,245 (1,503,251) O- - O- -O- ~,~3z_. 40, ,177 1,139,323 3,010, ,245 (1,503,251) ~,Z~7_ $ ,732,524 $ ,562 $ 10, ~ 11,069 10, ,036 ~0- - O~ 3, _~T37 835,201. 1,527,312 - O- 1,139,323 - O- 1,527,312 1,139, ,707 (218,769) - 0~ 126,707 (218,769) - 0~ -9~ - 0. :0: 311,506 16:}Z69..!._ S 1~~.39~323 $ :0:.$ 2,886~079.. $ $ 1, $ 3, $

10 TOW N OF OLLA,LOUISIA NA COM BIN ED STA TEM EN T OF R EVEN UES,EXPEN D ITURES A N D CIIA N GES IN FUN D t~a LA N CES A LL G OVER N M EN TA L TYPES YEAR ENDED JUNE 30,2000 Genera Fund Capital Project Total (Memorandum Only) Com ponent Unit Cem etery Board REVENUES: Ta~es _ icenses & Perm its Intorgovernnlental Charges ForServices Fines Int(:rest M iscellaneous Donations,M em orials,etc. Equity Incom e $ 75,531 26,344 34,041 87, , ,922 TOTAL REVENUES..$..._.. _ 44 _.9 _,3 _ 2:. 6 _ $.._.._.. 2 _ 3. 2j245 $. 681~5 _ 7.! $ 13,943 $ 152,006 $ -0- $ 152,006 $ Cem etery CapitalProjects TOTAL EXPENDITURES 166,977 41,466 66,622 ~_3_72.:~ 166,977 41,466 66,622 ~'.3_~L?~,fi - o- 4,361.~;..._.._. 427~. 0Z 1 - $ 232,2~,5.$ 659L:~!6. $ 4,3,.5! EXCESS (DEFICIT)OF REVENUE OVER (UNDER) EXPENDITURES BEFORE OTHER FINANCING SOURCES (USES). ~ 22_,2_5_.5 $. :92 _ $. 22:,255. $ 9,592 OTHER FINANCING SOURCES (USES) Transfers $ _. _$ 14,331 _ $ -0: TOTAL OTHER FINANCING SOURCES (USES EXCESS (DEFICIT)OF REVENUES OVER (UNDER) EXPENDITURES AFTER EITHER FINANCING. 3OURCES (USES) FUND BALANCES.BEGINNING OF:YEAR FUND BALANCES,END OF YEAR $ 36,586 $ $ :-0 _. -. $. _.. 14{331 _ $ :01 $ z177 $ 163,769 The accom panying notes are an integralpartofthis statem ent 6

11 TOW N OF OLLA,LO UISIA NA STA TEM EN T OF R EVEN UES,EXPEN D ITUR ES A N D CH A N GES IN FUN D BA LA N CES B UD GET A N D A CTUA l. GEN ERA L FUN D JUNE 30,2000 Budget G ENERA L FUND A ctual G AA P Basis Variance Favorable (Unfavorable) R evenues: Taxes Licenses And Perm its Intergovernm ental Charges ForServices Fines M isce laneous TotalRevenues $ 70,330 20,000 40,587 87, ,000!_Q~,776 $ 75,531 26,344 34,041 87, , ,922 5,201 6,344 (6,546) 225 2,113 $ 431,343 S 449.~326 S 17,983 Expenditures: Current G eneralg overnm ent Police Fire StreetAnd Sanitation Public W orks $ 179, ,887 40,498 62,710 ~0- $ 152, ,977 41,466 66,622 27,366 (8,090) (968) (3,912) - O- TotalExpenditures $. _. 427,071 $!4,396 Excess (Deficit)OfRevenues Over(Under) Expenditures Before OtherFinancing Sources (Uses).$ _. ( _ 1 _ 0_[i_2,4).$._... 22:2_55- _$ 3.;~:}.7.9 OtherFinancing Sources (Uses;) Transfers._$ 14,33! $ 14,331 TotalOtherFinancirl9 Sources (Uses) I-xcess (Deficit)OfRevenue Over(Under)Expenditures AfterOtherFinancing sources (Uses) $ (10,124) $ 36,686 $ 46,710 Fund Balance Beginning O fyear Fund Balance End O fyear?~,ooo $ 14,876 $ 311, ,920 $ 296,630 The accom panying notes are an integralpartofthis statem ent.

12 TO W N O E O LLA,I,O UISIA NA STA TEM F.N T 01:REVEN UES,EXPEN SES A ND CIlA N GES IN RETA IN ED EA RN IN GS A Ll,PROPR IETA RY FUN D TYPES -EN TERPR ISE FUN D S YEAR ENDED JUNE 30,2000 O PERA TING REVEN UES: W aterdepartm ent Charges ForService OtherCharges TotalW ateri-)epartm ent Sew erdepartm ent Charges ForServ ice Sales Taxes O thercharges TotalSew erdepartm ent TO TAL OERA TIN G REVENUES OPEAR TING EXPENSES: W aterdepartm ent Salaries And Related Cost M aterials And Supplies Depreciation Repairs And M aintenance Utilities Insurance Truck Expense M isce laneous Ofice Expense TotalW aterdepartm ent Sew erdepartm ent Salaries And Related Costs M aterials And Supplies Depreciation Repairs And M aintenance Utilities SewerAnalysis Insurance Truck Expense M isce laneous Postage EngineerFees Sales Ta,x Fxpense TotalSew erdepartm ent TO TA L OPFAR TIN G EXPENSE Operating Inconle (Loss) Non-Operating Revenues(Expenses): InterestIncom e InterestExpense Intergovernm enta~--g rantincom e Transfers TotalNon-Operating Revenues (Expenses) NetIncome (Loss) Retained Earnings (Deficit)Beginning OfYear Retained Earnings (Deficit)End OfYear $ 199,110 5,504.~L 204,614 $ 88, , _~L 2;39,8~7._~t 444.,s!7.! $ 71,015 37,564 34,984 32,199 19,633 5,180 3,397 2, $_ 206,836 $ 70,841 32,269 52,429 26,070 8,748 2,762 5,180 2,795 8,419 1, _ A2.P _._$..2_2.4_,.8_fi_? ~.431,716 S 24,398 (42,330) 17,288 (~,~!_)_. S (2,220) (89,842 "The accom panying notes are an integralpartofthis statem ent

13 TO W N OF OLLA,I.O UIS1A NA STA TEM EN T OF CA SItFLOW S A LL PR OPRIETA RY FUN D TYPES EN TER PR ISE FUN D YEAR ENDF-I)JUN E 30,2000 C ash From O perations: NetIncome (t.oss)before Transfers O perating Tr~,nsfers NetIncom e AfterTransfers $ 12,111. (14,331). S (2.,~2~) Adjustm entto NetIncom e (Loss): Add - Depreciation Add - A lowance F-orBad Debts (Decrease)Increase In Accrued interest Decrease (increase)in Accounts Receivable (Decrease)Increase in AccountsPayable $ 87,413 (315) (655) 6, NetAdjustm ents Cash Provided By O perations Cash From Custom erdeposits G rants ~,884 $ ,238 _. 232,245 TotalCash Provided Cash W as A pplied 1'o Investm ents Revenue Bonds Restricted Funds Fixed Assets Construction In Progress $ 54,940 15,518 11,770 97,524 ~72,51.~ TotalCash A pplied NetIncrease (Decrease)In Cash Flow. 35 _ 2 _,. 263 $ (26,116) Cash Beginning O fyear Cash End O fyear' The accom panying notes are an integralpartofthis statem ent

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15 Townof Ofa,Louisiana Notesto Financiaf Statem ents IG N IFIC AN T A C C O U N TIN G PO LIC IES- The Tow n ofo lla w as incorporated underthe Law rason A ctin Augustof The Tow n operatesunderthe M ayor-board of A lderm an form ofgovernm ent. The Tow n provides tle follow ing significantservices to its residem s asprovided by itscharter:public safety (police and fire),highways and streets,sanitation,utilities(waterand sewer services)/and generaladlninistrative functions,including coordination ofrelated serviceswith Parish,State and Federal governing bodies. The accounting pulicies of the Tow n ofo lin conform to generally accepted accounting principlesasapplicable o govermnents. The folh)w ing isa sum m ary of the m ore significantaccounting policies: A. R eporting Enlit3 Thisreportincludesallfunds,the accountgroupsand componentunits(see notesto componentunitfinancial slatcments atthe end of these notes) which are controlled by or dependenton the Town's executive and legislative branches(the M ayorand Board ofalderm an). Controlby ordependence on the Town wasdeterm ined on thebasisof adoption, taxing authority, authority to issue debt, election or appointm ent of governint; body, and other general oversightresponsibility. B. Fnnd Accounting The accounts ofrite Tow n ofo l/a are orgardzed on the basisof fundsand on accountgroups,each of which is considered a separate accounting entity. The variousfundsand accountgroupsare reported by generic fund type in the fm aucialstatem ents. F,ach fund operates w ith a group of self-balancirlg accounts thatcom prise its assets, liabilities, fu nd equity, revenues and expenditures, or expenses, as appropriate. G overnm ent resources are allocated to aud accounted for in the individualfu nds based upon the purposes for w hich they are to be spentand the m eans by which spending activitiesare controlled. The follow ing fund categories,fu nd typesand accountgroupsare used by the Tow n: G O V ER N M EN TA L FUN D TY PES GeneralFund The G enezalfund is the generaloperating fund of the Tow n and is used to accountfor allfinancial resourcesexceptforthose required to be accounted for in anotherfund. CapitalProjectsFunds The capitalprojects fund isused to accountfor financialresources to be used for the acquisition construction,and m ajorrenovation ofcapitalfacilities. PR O PRIETAR Y FUN D TYPES Enterprise Fund The t,;nterprise Fund isused to accountforoperations(atthatare financed and operated silnilarto private businessenterprises w hereby the intentof the governing body is thatthe costs,including depreciation, of providing goods or services to the generalpublic be financed or recovered prim arily through user charges; or(b)wherethegoverning body hasdecided thatperiodicdetermination ofrevenuesearned,expensesincurred, and/ornetincom e isappropriate forcapitalm aintenance,public policy,lnanagem entcontrol,accountability or

16 Townof Ofa,Louisiana N otesto Financiaf Statem ents (Continued) SI,1M M A,R~ O F S1G N IFIC /kn T AC C O UN TIN G PO LIC IES - (C ~uti~m e B. Fund Accounting- (Continued) other purposes. The Tow n's Enterprise Fund is com prised of its U tility D epartm ent's w ater and sewer system s. A CCO UN TS GRO UI'S GeneralFixed A ssets A ccountgroup Thisaccountgroup isestablished to accountforallfixed assetsoftile Tow n,exceptthose accounted for n tile Fm terprise Fund. G enerallone-term D ebta ccountgroup This accotm tgroup is established to accountf~r alllong-term obligations of tile Tow n,except those long-.term obligationsaccounted forin the Enterprise Fund. C. BASIS O F ACCO U NTIN G Basis of accounting refers to tile tim e atw hich revenues and expenditures or expenses are recognized ilthe accounts and reported in the financialstatem ent. Basis ofaccounting relates to the tim ing of the m easurelnentm ade, regardlessof the m easurem entfocusapplied. G ovenam entall;unds These funds are accounted for using the m odified accrual basis of accounting. Their revenues are recognized w hen they becom e m easurable and available as netcurrentassets. A d V alorem taxes and charges for services are considered "m easurable" at the tim e of billing. Licenses and perm its, intergovernm ental rcveuue, fines franc]lise taxes and m iscellaneous other revenues are geuerally recorded as revenues w hen received in cash because they are generally notm easurable untilactually received. Expenditu resare generally recognized underthe m odified accrualbasis of accounting w hen tile related fund liability is incurred. Exceptions to this generalrule include:principaland intereston generallong-term debtw hich isrecognized w ben due. I'roprietaO,Fund Thisfu nd isaccounted forusing the accrualbasisof accounting. Itsrevenuesare recognized w hen they are earned,and its expenses are recognized w hen they are incurred. Enterprise fund receivables are chargedof w hen co]lecliou eforts indicate thatsuch accountisdoubtfulof being collected. 12

17 TownoJ Ofa,Louisiana N otesto Fina~,cial statem em s (Continued) (1) SUM M ARY O F SIGNIFICANT ACCOUNTING PO LICIES - (Continued D. FIX EI)A SSETS AN D LO N G -TER M IA A BIlJTIES The accounting and reporting treatm entapplied to the fixed assets and long-term liabilities associated w ith a fund are determ ined by its m easurem entfocus. A llgovernm entalfunds are accounted for on a spending or "financial flow " m easurem ent focns. This m eans thatonly current assets and current liabilities are generally included on their bahmce sheets. Their reported fund balance (netcurrent assets) is considered a m easure of "available spendable resources." Governlnentalfund operating statementspresentincreases (revenues and other financing sources) and decreases (expenditures and other financing uses) in netcurrentassets. Accordingly,they are said to presenta sunm lary ofsourcesand usesof "available spendable resources"during a period. Fixed assetsused in governmentalfund type operations(generalfixed assets)are accounted forin the General Fixed AssetsAccountGroup,ratherthan in governm entalfunds.public dom ain ("infi-astructure")generalfixed assets consisting ofcertain im provem ents,including roads,bridges,curbsand gutters,streetsand sidew alks,drainage system s and lighting system sare notcapitalized. A llfixed assets ofthe Proprietary Fund are valued athistoricalcost. The G eneralfixed A sseta ccountg roup property records are notsufficiently detailed to provide data w ith respectto w hether the assets acquired prior to June 30,I982,are recorded athistoricalcost,estim ated historicalcost,oratestim ated fair value on date donated. G eneral fixed assets acquired subsequentto June 30, 1982 are recorded athistoricalcost,with the exception of a $5,000 building donated to tbe Tow n in 1993 and $3,500 worth ofland donated in Long-term liabilitiesexpected to be financed from governm entalfunds are accounted for in the G enerallongerln debta ccountg roup,notin the governm entalfunds. The two accountgroupsare not"fu nds." They are concerned only w ith the lneasm elnentoffinancialposition. They are not involved w ith m easurem ent of results of operations. Because of their spending m easurem em focus, expenditure recognition forgovernm entalfund typesislim ited to exclude am ountsrepresented by noncurrentliabilities. Since they do not affect net current assets, such long-term am ounts are not recognized as governm ental fund type expendituresorfund i[iabilities. They are instead reported asliabilitiesin the G enerall,ong-term A ccountg roup. The proprietary fire d isaccounted foron a costofservices or "capitalm aintenance" m easurem entfocus. means thatalassets and allliabilities (whether currentor noncurrent)associated w ith its activity is included on its balance sheets. Itsreported fund equity (nettotalassets) is segregated into contributed capitaland retained earnings components. Proprietary fund type operating statementspresentincreases(revenues)and decreases(expenses)in net to talassets. Forfile yearended June 30,2000,no interestcosts w ere capitalized forconstruction of fixed assets D epreciation of allexhaustible fixed assets used by tile proprietary fund is charged as an expense against its operations. A ccum tdated depreciation is reported on tile proprietary fund balance sheet. D epreciation has been provided overthe estim ated usefu llivesusing the straightline m ethod. The estim ated usefullivesare asfollow s: This W atersystem SewerSystem Buildings Trucks And "tractors Equipm ent 13 Life In Years

18 Townof Ofa,Louisiana N otesto Financia( Statem ents (Continued) (I) SUM M ARY O F SIGNIFICANT ACCOUNTING PO LICIES - (Continued E. BUD G ETS A N D B UD G ETA R Y A C C O UN TIN G Tile Tow n follow sthese procedures in establishing the budgetary data reflected in these financialstatem ents 1. The Tow n C lerk prepares a proposed budget,based on departm ental group budget requests, and subm its sam e to tilt M ayorand Board ofa lderm en no laterthan fifteen dayspriorto the beginning ofeach fiscalyear. 2. A sm nm ary ofthe proposed budgetispublished and tile public notified thatthe proposed budgetisavailable forpublic inspeclion. A tthe sam e lim e,a public hearing iscalled. 3. A public )ro aring isheld on the proposed budgetatleastten daysafterpublication of the callforthe hearing 4. A fterthe holding of the public hearing and com pletion of allaction necessary to finalize and im plem entthe budge/,lbe budgeladopted through passage of an ordinance prior to the com m encem entof the fiscalyear for w hich the budgetisbeing adopted. 5. Budgetary am endm entsinvolving the transferoffundsfrom one departm ent,program orfunction to another or involving increases in expenditures resulting from revenues exceeding am ounts estim ated require the approvaloftim Board of A lderm en. 6. A llbudgetary appropriationslapse atthe end of tile fiscalyear 7. Tile budg(;lw asam ended during the year 8. Budgetsforthecapitalprojectsfund areprepared on aprojectlifebasisratherthan on an annualbasisand therefore,have been om itted from the accom panying financialstatem ents. F. C A SIIA N D IN V EST M EN T S D eposits Itistile Tow n'spolicy fu rdepositsto be 100% secured by collateralatm arketorpar,w hichever islower,less he am ountofthe FederalD epositinsurance C orporation insurance. The Tow n's deposits are categorized to give an ndication ofthe leve~ofrisk assum ed by the Tow n atyearend. The categoriesare describesasfollow s: ~ Category 1 - Insured or collateralized w ith securities held by the Tow n or by its agent in tile Tow n's uanle. ~ Category 2 - Collam ralized w ith securities held by tile pledging financial institution's trust departm ent or agentin the Tow n'snam e. ~ Category 3 - U ncollateralized 14

19 TownofOfa,Louisiana N otesto Financiaf Staternents (Continued) SU M M AR Y O F SIG N IFIC AN T A C C O U N TIN G PO LIC IES - (C ontinued F. CASH AND INVESTM ENTS - (Continued) B ank B alance Southern Heritage Bank Bank ofjena Concordia Bank Total $ 802,457 32,542 11,089 $ 846,088 Secured as Follow s FDIC (Category 1) BossierCity Utilities(Category 2) CalcasieuSD # 30 (Category2) A len Parish Fire District(Category 2) Assumption Parish SchoolDistrict(Category2) Desoto Parish SchoolDistrict(Category2) St,M arlins Parish (Category 2) LaFourche Parish SchoolDistrict(Category 2) Tota $ 143, , ,273 55, ,153 97,124 85, ,537 $ 93O,294 (;. IN VEN TO R IES Im m aterial am ounts of inventory are m aintained for general fund and enterprise fund operations and accordingly,suppliesare expensed aspurchased, II. BA I)D EBTS -G EN ER A L FU N D A N D A LLO ~VA N C E FO R BAD D EBTS -EN TER PR ISE FU N D U ncollectible am ountsdue forcustom ers'garbage billingsarc charged to a reserve forbad debtsatthe tim e inform ation becom esavailable w hich w ould indicate the uncollectibility of the particular receivable. A tjune 30,2000 no reserve torbad debts was required since the estim ated uncollectible receivables outstanding were considered im m aterial. The Enterprise Fund allow ance forbad debtsw asestablished at5% of totalreceivables. D etailreceivables of the Enterprise Fund follow : Enterprise 1. C O M PEN SATED A BSEN C ES TotalAccounts Receivable A low ance ForBad Debts NetAccounts Receivable Fund $ 23,717 ~L3~9). $ 22,588 Vacalion and sick leave are recorded asan expenditure orexpense when paid, V acation earned is based on the num berof yearsof servicesasfollow s: _ Ful:Tim e I~m ploym ent O ne YearTo Less Than Three Years Three O rm ore Years 5 Days Earned PerY ear

20 Townoj Ofa,Louisiana N otesto Financia(Statem ents M AR Y O F SIG N I 1. CO M I'ENSATEI)ABSENCES - (Continued) V acation tim e is notcum ulative and m ustbe taken in 1/2 day orm ore increm ents. Sick leave isearued on the hasisofone day perm outh ofcontinuousem ploym ent. U nused accum ulated sick leave from one yearm ay be carried torward to file succeeding year. A llsick leave isforfeited upon term ination of em ployn'lentw ith the Tow n. Based on the above described com pensated absencespolicy,no liability forcom pensated absencesforthe Tow n ofo lla isrequired to be provided atjune 30,2000. J. R ESER V ES The Tow n recordsreservesto indicate thata portion ofits retained earnings/fund balancesare legally restricted ora specific future u:~e. The follow ing isa listofsuch reservesand a description of each: Reserved for D em vciation attd Contineencie Thisam ountrepresentsm onies reserved lo m ake em ergency repairsto the w aterand sew ersystem s Reserved -R evenue ]lorlds Thisam ount~epreseutsrnoniesreserved asrequired by the revenue bond indentures Reserved for DebtService Certain assets have been reserved in the D ebtservice Fund for future paynrentof long-term liabilities ofthe govel-nu`tentalfuods. K. TO TAL C O LU M N S O N C O M BIN ED STA TEM EN TS -O V ERV IEW Total colum ns on the com bined statelnents are captioned "M em orandum O nly" to indicate that they are presented only to facilitate financialanalysis. D ata in these colum ns do notpresentfinancialposition in conform ity w ith generally accepted accounting principles. N either is such data com parable to a cortsolidation, lnterfund elim inationshave notbeen lnade in the aggregation of thisdata. (2) AD VALOREM TAXES AND SALES TAXES The Tow n leviestaxeson realand businesspersonalproperty located w ithin itsboundaries. The Tow n utilizes he servicesofthe 1,aSalle Parish Tax A ssessorto assessthe property valuesand prepare the Tow n'sproperty tax roll. "he Tow n billsand collects itsow n property taxes. Pro = pe_~y Tax Calendar A ssessm ent[)ate lxzvy D ate 'l'~x BillsM ailed TotalTaxesA re D ue PenaltiesA nd lnteresta re A dded Lien D ate January 1 N o LaterThan Junel O n O rabouto ctober 15 D ecem ber31 January 1 January 1

21 Towno~ Ofa,Louisiana N otesto Financiaf Statem ents (Continued) (2) _ A D V A LO R EM TA _XE S Forthe yearended June 10,2000,taxesof 7.96 m illsw ere levied againstproperty having a valuation of som e 5;3,723,875 which produced some $29,992 in revenue. All taxes levied, 7.96 m ils, were for generalcorporate pro poses. Ad Valorem taxesreceivable are netofallowance foruncollectible taxesoflessthai~$100 atjune 30,2000. The Town began collecting a 1% Sales Tax on M ay 1, 1999 fund operation and m aintenance ofthe Town's scw erage facilities. (3) RESTRICTED ASSFTS -PRO PRIET A tjune 30, :2000, restricted assets of the Enterprise fund were invested in either interest bearing checking accountsortim e depositsand w ere restricted forthe follow ing purposes: Revenue Bonds Payeble Revenue Bond Reserve Fund Depreciation And C ontingency Fund C ustom er's Depos)t Total $ 93,207 63,493 49,018 $ 308,504 (4) IlAN G ES IN G EN li' ~ R _ A L L~nd 13uildings Im provem ents Equipm ent Total Balance $ 87, ,779 56,463 $ 1,122,386 A dditions $ 10, ,937 -g'"q~ 37 -" Deletions $ -0- -O- - O- - O- : 0- B alance $ 97, ,779 56, ,483 (5) EN A A sum m ary of em erprisc fond property,plantand equipm entatjune 30,2000,isasfollow s Buildings W atersystem SewerSystem Trucks,M achinery & Equipm ent C onstruction In Progress Sub-'lotal Accum ulated Depreciation Net B alance $ 26, ,121 1,706, , $ 1,497,003 A dditions ~ D ions)- _ $ -0-59,734 37, ,246 -'g--329~ig~ $ ' _ B alance $ 26,418 1,043,855 1,706, , ,245 $ 3~24;2~g~'6 1!:.5~?.3_.,.2_~.!) $ 1,739, A ccum ulated De~oreclation $ 21, , ,

22 Town oj'olta,louisiana N otesto Financiaf Statem ents (Continued) (6) CIIANGES IN LONG-TERM DEB'I The follow ing isa sum m ary ofbond and installm entnotespayable transactionsofthe Tow n of O lla fortile year ended June Revenue Bonds & Notes Balance $ 765,933 Additions Reductions s L2<642.L _ B alance $ 739,291 Bondsand instalhnentnotespayable atjune 30,2000 are com prised of the follow ing individualissues $275,000 W aterrevenue Bonds dated ;due in annualinstalments of $5,000 to $5,000 throughdecember4,2019;interestat5 percent. $ 162, 000 $200,000 SewerRev~!nue Bonds dated ;due in annualinstalments of$2,000 to $9,000 through Au9us114,2021;interestat5 percent. 150, 066 $500,000 Sower Revenue Bonds dated ;due in annualinstalments of $33,450 through August14,2029;interestat6 percent, 423, 408 $50,000 bank loan at Southern Heritage Bank dated 1/5/95 forthe purchase ofa garbage truck,due in 60 monthly instalments of$980 at6 5% interest. 3, 737 Total $ The annualrequirem ents to am ortize alldebtoutstanding as of June 30,2000, including interestpaym ents of,5717,546 are asfollow s: YearEnding June 30, Total G eneral O bligation Note $ 3, Q- $ 3,737 W ater Revenue Bonds $ 15,000 75,009 75,000 $ 285,000 Sew er Revenue B onds $ 42, , ,250 7qljO~ $1,168,05~- Tota U ndertile term sof file bond indenture on outstanding W aterrevenue Bondsdated D ecem ber4,1979, earnings ofthe w aterworkssystem are to be m aintained separately and used forthe follow ing purposes: (a) Paymentofallreasonable and necessary expensesofoperating and maintaining tile system (b) Each month therewillbesetasideinto afund called the "W aterworksrevenuebond and InterestSinking Fund"an am ountcoustiluting 1/12 of the nextprincipaland interestpaym ent. (c) Each month,there willbe setaside into a "W aterworksreserve Fund"5% ofthe amountpaid into the Sinking Fund untilsuch time asthere hasbeen accumulated there in tile sum of$18,750. These fundsm ay be used only forthe paym entof m aturing bonds and interestcoupons for w hich sufficientfunds are notavailable in the Sinking Fund. A s of June 30,2000 tim Tow n ofo lla had setaside the m axim um required am ountinto this "W aterw orksr eserve Fund". 18

23 (6) CItANGES IN I.ON G-TERM DEBT - (Continued TownofOfa,Louisiana N otesto Financia( Statem ents (Continued) (d) There w illalso be setaside into a "W aterworks Depreciation and Contingency Fund" $63 per month. These funds w ill be used to care for depreciation, extensions, additions, im provem ents and replacem ents necessary to operate the system properly,and to pay interestand principalon bondsw hen there isnotsufficient m oney in the Sinking or Reserve Fund. (el Alloftilerevenuesreceived in any fiscalyearand notrequired to bepaid in such fiscalyearinto any oftile above noted fim dsshallbe regarded as surplusand m ay be used forany law fulpurpose. Undertile term sof tile bond indenture on outstanding SewerRevenue Bondsdated A ugust14,1981,and those dated Septem ber 6, 1989,earnings of the Sewer system are to be m aintained separately and used for the follow ing [)Ulposes'. (a) Paymentofalreasonable and necessary expensesofoperating and maintaining the system (b) Each nlo:nth,there willbe setaside into a fire d called the "Sinking Fund"an am ountconstituting 1/12 of the nextprincipaland interestpaym ent. (c) Each lnonth,there willbe setaside into a "SewerReserve Fund"5% ofthe am ountpaid into tile Sinking Fund untilsuch time asthere hasbeen accumulated there in the sum of$45,900, These funds )nay be used only lotthe paym entof m aturing bondsand interestcouponsforw hich sufficientfim ds are notavailable in the Sinking Fund. AsofJune 30,2000 the Town ofolla had setaside the am ountof$45,216 into this "Sewer Reserve Fund". (d) There w illalso be setaside into a "SewerD epreciation and Contingency Fund" $188 perm onth. These fundsw illbe used to care fordepreciation,extensions,additions,im provem entsand replacem entsnecessary to operate the syslenrproperly,and to pay interestand principalon bonds w ben there is notsufficientm oney in the Sinking or Reserve Funds. W hen the Revenue Bonds dated A ugust 14, 1991 are paid in fullthe lnontbly paym entrnay bc reduced to $144. (el A loftilerevenuesreceived in aw fiscalyearand notrequired to bepaid in such fiscalyearinto any oftile above noted tim dsshallbe regarded assurplusand m ay be used forany law fulpurpose. A t June 30, 2000 dm Enterprise Fund Retained Earnings w ere reserved for tile purposes noted above as follow s Revenue Bond Reserve Fund Depreciation And Contingencies Fund Total 77,689 49,018 (7) I'ENSION PLAN Substantially allem ployees of tile Tow n of O lla are m em bers of the follow ing statew ide retirem entsystem s M unicipalf.m ployees RetirelnenlSystem of Louisiana,M unicipalpolice Em ployees Retirem entsystem of Louisiana or Fircfighters'Retirem entsystem of Louisiana. These system s are cost-sharing,m ultiple-em ployer defined benefi pension plansadm inistered by separate boardsof trustee. Pertinentinform ation relative to each plan follow s: 19

24 TownoJ Ofa,Louisiana N otesto Financiaf Statem ents (Continued) (7) PENSIO N PLAN - (Continued A.MunicipalEmployeesRetirement5'ystem of Louisiana (System) Plan D escription. The System iscom posed of tw o distinctplans,plan A and Plan B,w ith separate assets and benefitprovisions.[allemployeesofthemunicipality aremembersof(plan A)(Plan B)]. [orsomeemployees ofthemunicipality are m embersofplan A and som eare membersofplan B.] A llperm anenlem ployeesw orking atleast35 hoursperweek who are notcovered I-,y anotherpension plan and arc paid w holly or in partfrom m unicipalfunds and allelected m unicipalofi cials are eligible to participate in the System. [UnderPlan A,employees who retire atorafterage 60 with atleast10 years ofcreditable service,ator after age 55 w ith a least25 years of creditable service,or after any age w ith atleast30 years of creditable service are enlitled to a retirem entbenefit,payable m onthly for life,equalto 3 percentof their finalaverage salary foreach yearofcreditable service. [UnderPlan B,employeeswho retire atorafterage 60 with atleast10 yearsof creditable service atorafterage 55 w ith atleast30 yearsof creditable service are entitled to a retirem entbenefit,payable m onthly for life,equalto 2 percentof their final-average m onthly salary in excess of $100 for each year of creditable service. Furtherm ore,em ployees with at least 10 years of creditable service,butlessthall3(1years,m ay take early retirem entbenefits com lnencing atorafterage 60,w ith the basic benefitreduced 3 percentforeach yearretirem entprecedesage 62,unlesshe hasatleast30 yearsof creditable service. In any case,m onthly retirem entbenefitspaid underplan B cannotexceed 100 percentoffinal~average salary.] Final-average salary istheemployee'saverage salary overthe 36 consecutiveorjoined monthsthat produce the highestaverage. Em ployees w ho term inate w ith at leastthe am ountof creditable service stated above,and do notw ithdraw theirem ployee contributions,m ay retire atthe agesspecified above and receive the benefitaccrued to theirdate of term ination. The System also provides death and disability benefits. Benefits are established or am ended by state statute. The System issues an am m alpublicly available financialreportthatincludes financialstatem ents and required supplelnentary inforlnation for the System. That report m ay be obtained by w riting to the M unicipal Em ployees Retirem entsystem of Louisiana,7937 O ffice Park Boulevard,Baton Rouge,Louisiana 70809,or by calling (504) Funding Policy. IUnderPlan A,m em bersare required by state statute to contribute 9.5 percentoftheiratm ual covered salary and the Tow n of O lla is required to contribute atan actuarially determ ined rate. The current rate is 4.5 percentofannualcovered payroll]. [Under Plan B,members are required by state statute to contribute 5.0 percent of their annual covered salary and the Tow n of O lla is required to contribute at au actuarially determ ined rate. The currentrate is3.75 percentofannualcovered payroll.] Contributionsto the System also include one-fourth ofone percent(exceptorleans and EastBaton Rouge Parishes)ofthe taxes shown to be collectible by the tax rolls of each parish. These tax dollarsare divided between Plan A and Plan B based proportionately on the salaries of the active m em bers of each plan. The contribution requirem ents of plan m em bers and the Tow n of O lla are established and m ay be am ended by state statute. A s provided by Louisiana Revised Statute 11:103, the em ployer contributions are determ ined by actuarial valuation and are subjectto change each yearbased on the resultsofthe valuation forthe priorfiscalyear. The Town ofo la's contributionsto the System under Plan B forthe yearsending June 30,2000,1999,and 1998 were $5,587, $4,770,and $3,089,respectively,equalto the required contributionsforeach year. 20

25 Towno~ O[fa,Louisiana N otesto Financiaf Statem ents (Contim~ea9 PEN SIO N PLA N - (C ontinued B.M unicilmlpoliceemployeesretirementsystem of Louisiana Plan D escriplion. A ll full-tim e police departm enl em ployees engaged in law enforcem ent are required to participate in tile System. Em ployees who retire atorafterage 50 w ith atleast20 years ofcreditable service are ator after age 55 w ith atleast 12 years ofcreditable service are entitled to a retirem entbenefit, payable m onthly forlife,equalto 3 1/3 percentof their final-average salary foreach yearof creditable service. Finalaverage salary is the employee's average salary over the 36 Consecutive orjoined m onths thatproduce the highestaverage. Em ployees who term inate w ith atleastthe am ountof creditable service stated above, and do not w ithdraw their em lrloyee contributions, m ay retire at the ages specified above and receive the benefit accrued to their date of term ination. The System also provides death and disability benefits. Benefits are established oram ended by state statute. The System issues an annualpublicly available financialreportthatincludes financialstatem ents and required supplem entary inform ation for tile System. Thatreportm ay be obtained by w riting to the M unicipalpolice Em ployees Retirem ent System of Louisiana, 8401 U nited Plaza Boulevard, Baton Rouge, Louisiana ,orby calling (504) Funding Policy. Plan m elnbers are required by state statute to contribute 7.5 percentof their annualcovered salary and the Tow n ofo lla isrequired to contribute atan actuarially determ ined rate. The currentrate is 9.0 percentofannualcovered payroll.the contribution requirem ents ofplan m em bers and the 3"ow n ofo lin are established arid m ay be am ended by state statute. A s provided by Louisiaua Revised Statute 11:103, the employercomributionsaredetermined by actuarialvaluation and aresubjectto changeeach yearbased on tile resultsof the valuation forthe prior fiscalyear. The Tow n ofo lla'scontributions to the System under forthe years ending June 30,2000, 1999 and 1998 were $2,719, $2,678,and $2,083, respectively,equalto the required contribulions foreach year. (8) lqlnl)deficits The Enterprise Fund ended the yearwith a retained earningsdeficitof$92,062 thatresulted from depreciation cxpense taken on thatportion ofthe plantbuiltwith contributed capital. To date $1,503,25l in depreciation e~t)enses hasbeen taken on tha~portion of the plantfunded w ith contributed capital. (9) LITIGATION The Tow n ofo lla isinvolved in no litigation atjune 30,2000,w hich isnotcovered by file Tow n's applicable nsurance policiesorisconsidered to be significantto tile Tow n'sfinancialstatem ents. (10) USE OF ESTIM ATES The preparatiou of financial statem ents in conform ity w ith generally accepted accounting principles requires m anagem entto m ake estim atesand assum ptionsthataffectthe reported am ountsof assetsand liabilitiesand disclosure of couli~gentassels and liabilities at the date of the financial statem ents and the reported am ounts of revenues and expensesduring the reporliug period. A ctualresultscould differfrom those estim ates. 21

26 Townof Ofa,Louisiana N otesto Finaneiaf Statem ents (Continued) (11) ENCUM BRAN CES "D~c Town doesnotutilize encum brance accounting (l2) EI.EC TEI)O FI~'IC IA LS SA LAR IES Nam e Benard M ilet D.L.M c Dougald John G reen Lee Breithaupt W anda Love PaulCornw e l G ary Taylor Title M ayor A lderm an Alderm an Alderm an Aldem lan Alderm an Police Chief A nnual _ Salary $ 14,350 95O Date O f Service 7/1/ /30/2000 7/1/ /30/2000 7/1/ /30/2000 7/1/ /30/2000 7/1/ /30/2000 7/1/ /30/2000 7/1/ /30/2000 (13) CONTINGENCIES The Tow n was inform ed by letter on Septem ber 15, 1997 by the Louisiana D epartm ent of Enviromnental Quality thatthc Tow~ isin violation ofportionsofthe Lmuisiana EnvironmentalQuality Act(La.R.S.30:2001 asit related to the operatie:n an(trnaintenance of the Tow n's sew ersystem. (14) INSURANCE EXPIRATION DATES 15) RATES ~ pe Property G eneralliability Business Auto Fidelity Bc,nd W orkers Com pensation C~ _mp any Titan Insurance Titan Insurance Titan Insurance Titan Indem nity La M unicipalrisk M gt.agency D ate O f Exoiration 7/1/2000 7/1/2000 7/1/2000 7/1/2000 I/1/2001 Thc Tow n of G ila Enterprise Fund has 813 custom ers. There are 136 renters,605 hom eow ners,71 business ow nersbusinessrenter. The depositam ounts are listed below : Renter O w ner Rate Schedule W ater ICL -$4.50 forthe Ist2, 000 gal. OCL -$5.50 forthe 1s~2, 000 ga 1.75 per1,000 thereafter 1.75 per1,00o thereafter Urania PleasantRidge Bulk W aterrates $1.75 per1,000 gal.,m inimum of$ or200,000 $1.75 per1,000 gal.,no m inimum $5.00 per1,000 ga 22

27 Tow.oJ Ofa,Louisiana N otesto Finaneia( Statem ents (Continued) (15) RATES - ~Conthm ed Sew er FJre G arbage W aler& SewerTaps ICL W ater& Sew ertaps O C L Residential$7.,50 for1st3,000 gal.,$.75 per1,000 thereafter Com m ercial$15.00 for1st10, 000 gal.,$.75 per1,000 thereafter Residential& Com m ercial-$2.50 perlocation Residential$7.00 Commercial$15.00 & up based on the amountofgarbage $ $350.00

28 24

29 Of(a Cem etery Board Town~ Ofa,Louisiana N otesto Financiaf Statem ents SU M M AR Y O F SIG N IFIC A N T A C C O U N TIN G PO LIC IES The Cem elery Board The Cem etery Board w as created to m anage and m aintain the O lla Cem etery. The board m em bers arc appointed by the Tow n ofo lla,louisiana and utilizes tbe Tow n's facilities and assets. Therefore,the Cem etery Fund isconsidered a com ponentunitofthe Tow n ofo lla,louisiana. A CCO UN TIN G POLICIES The accounting policies of the O lla Cem etery Board conform to generally accepted accounting principles as applicable to governm ents. The follow ing isa sum m ary of the m ore significantaccounting policies: A. R EI~O RTIN G EN TITY Thisreportincludesallfundsw hich are controlled by ordependenton the Board. Controlby ordependence on he Town wasdeterm ined on the basisof appointm entof governing body and otber genera/oversightresponsibility. B. H JN D AC C O U N TIN G The accounts of tile Board are organized on the basis of funds, each of w hich is considered a separate actnunting entity. The various fu nds are reported by generic fu nd type in tile financialstatem ents. Each fund operates w ilh a group of self-balancing accounts thatcom prise its assets,liabilities,fund equity,revenues and expenditures,or expenses,asappropriate. G overnm entalresourcesare allocated to and accounted forin the individualfundsbased upon the purposes forwhich they are to be spentand the m eans by w hich spending activities arc controlled. Tile follow ing im d typesare used by tile Board. G O V ER N M ENTA I~FUN D TY PES GeneralFund The G eneralfund is the generaloperating fund of the Board and is used to accountfor allfinancia resourcesexceptthose required to be accounted furin anotherfu nd. SpecialRevenue Fund Special Revenue Funds are used to account for tile proceeds of specific revenue sources that are restricted to expenditures for specific purposes. The Board's only SpecialRevenue Fund is the PerpetualCare Fund. C. BASIS O F A C C O IJN TIN G Basis of accounting refers to the tim e at lie accounts and reported il tile financial statem ents nade,regardlessofthe m easureulentfocusapplied. w hich revenue and expenditures ol expenses are recognized in Basis of accounting relates to the tim ing of the m easurem ents

30 O fa Cem eterq Board Town ojcofa,louisiana N otesto Financiaf Statem ents (Continued) (1) SUM M ARY ()F SIGNIFICANT ACCO UNTING POLICIES - (Continued C. BASIS OF ACCOUNTING - (Continued) G ovcrnulental Funds - These funds are accounted for using the m odified accrualbasis of accounting. Their leveluesare recognized w hen they becom e m easurable and available asnetcurrentassets. 15~xpenditures are generally recognized under the m odified accrualbasis of accounting w hen the related fund abilily is incurred. D. C A SIIAN D IN V ESTM EN TS AtJune 30,2000,the carrying amount(book balance)ofthe Board'sdeposits with financialinstitutions was S160,942 the bank balance was $161,192. Allofthe bank balance was covered by federaldeposit insurance and securities pledged to cover the T ow n's deposits. Investm ents represent60 shares of Pacific G as and E lectric valued at.~24,61pershare or$l,477 and 50 sharesofgeneralpublic U tility valued at$27.00 pershare o1"$1,350 asofjune 30, 20l)0. F. C A SH A N D IN V ESTM EN TS D eposits Itisthe Tow n's policy fordeposits to be 100% secured by collateralatnm rketorpar,w hichever is low er,less e am omltof the FederalD epositinsurance Corporation insurance. The Tow n's deposits are categorized to give an dication ofthe levelofrisk assmned by the Tow n atyearend. The categoriesare describesasfollow s: ~ Category 1 - Insured or collateralized w ith securities held by the Tow n or by its agent in the Tow n's Ilan]c. ~ Category 2 - Collateralized w ith securities held by the pledging financial institution's trust departm ent or agentin tile Tow u'silam e. ~ CategoO,3 U ncollaleralized Bank Balance 06/30/2000 Southern Heritage Bank Bank ofjeua Concordia Bank Total Secured as Follow s: FDIC (Category 1) Securities(Category2) Total 602,457 32,642 11, ,088 $ 143,631 ~8~6~ $ 930,294 26