TereboneParishFireDistrictNo.6. AcountGroups 2-CombinedStatementofRevenues,ExpendituresandChangesin

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1 TABLEOFCONTENTS TereboneParishFireDistrictNo.6 December31,196 INTRODUCTORYSECTION TitlePage TableofContents FINANCIALSECTION IndependentAuditor'sReport Exhibits 1-CombinedBalanceShet-GovernmentalFundTypesand AcountGroups 2-CombinedStatementofRevenues,ExpendituresandChangesin FundBalances-GovernmentalFundTypes 3-StatementofRevenues,ExpendituresandChangesinFundBalance- BudgetandActual-GovernmentalFundType-GeneralFund 4-NotestoFinancialStatements SPECIALREPORTSOFCERTIFIEDPUBLICACOUNTANTS IndependentAuditor'sReportonthelntenmlContTolStructureBasedonan AuditofGeneralPurposeFinancialSlatementsPerformedinAcordance IndependentAuditor'sReportonComplianceBasedonanAuditofGeneral withgovel~nmentauditingstandards PurposeFinancialStatementsPerformedinAcordancewithGovernment AuditingStandards Page Numbe~ 17 19

2 BourgeoisBenetl: INDEPENDENTAUDITOR'SREPORq[ TolheBoardofComisioners, TereboneParishFireDistrictNo.6 Montegut,Louisiana. ParishFireDistrictNo.6(lheDistrict),acomponentunitoftheTeneboneParishConsolidalcd WehaveauditedtheacompanyingeneralpurposefinancialstatementsofTenebcanle Government,asofandfortheyearendedDecember31,196,aslistedinfiletableofcontents,q'hcse generalpurposefinancialstatementsaretheresponsibilityofthedistrict'smanagemenl.our responsibilityisloexpresanopiniononthesegeneralpurposefinancialstatementsbasedonou audit. Weconductedourauditinacordancewithgeneralyacepledauditingstandardsand standardsrequirethatweplanmidperformtheaudit:tobtainreasonableasuranceaboutwhethelthe isuedbythecomptrolergeneraloftheuuitedstates.those generalpurposefinancialstatementsarefreofmaterialmistatement.anauditincludesexamining, onatestbasis,evidencesuportingflaeamountsandisclosuresinthegeneralpurposefina wial statements.anauditalsoincludesasesingtheacountingprinciplesusedandsignificantestimates madebymanageurent,aswelasevaluatingtheoveralgeneralpurposefinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforouropinion. almaterialrespecls,thefinancialpositionoftheteiteboneparishfiredisttictno.6asofdecembcl Inouropinionthegeneralpurposefinancialstatementsrefenedtoabovepresentfairly,in 31,196,andtheresultsofitsoperationsforiteyearthenendedinconfomfitywithgenclaly aceptedacountingprinciples. 6,197onourconsiderationoftheTereboneParishFireDistrictNo.6'sinternalcontrolstractHc InacordancewithQovementAudi~lj!g_S!andard~,wehavealsoisuedareportdatedMay andareportdatedmay6,197onitscompliancewithlawsandregulations. CertifiedPublicAcountants May6,197 Houma,La., ~O,Box2168 Houma.LA Phone1504)B WestTunelBlvd.,Suite430 Faxt504)~79~949 PO.Bc,x6060 NewOrleans.LA FlerltagePla~,Suite80 Phone(504) Fax(5041B WestSecondSt,et RO.Box1205 Thibodaux,LA PhoneIS04~47-$9~I

3 (~QMBINEDBALANCESHET [TAL_FUNDTYPESANDACO Asets Cash Investments Receivables-taxes TereboneParishFireDistrictNo.6 December31,196 Staterevenuesharingreceivable Fixedasets AmountavailableinDebtServiceFund Amountobeprovidedforetirement ofgeneralong-termdebt Totals Acountspayableandacruedexpenditures Deferedrevenue DuetoTeiTeboneParish ConsolidatedGovenlmenl Bondspayable Totaliabilities FundEquityandOtherCredits Inveshnentingeneralfixedasets Fundbahmces: Reserved-debtservice Unreserved Totalfundbalances Totalfundequityandothercredits Totals Senotestofinancialstatements GovernmentalFundTypes General $7, , ,437 5,141 $769,53 $10,14 280,161 1,934 Debt Service 60,045 47,985 sjo8,o?o $ 47, ,239 47,987 47,314 47, ,043 60, $769,53 $108,030

4 Exhibit1 General Fixed Aco_unlGrOul?s_ Asets Long-Term General Debt Memorandum Total $ $7,125 54,895 70,74 320,42 60,043 70,74 5,141 60,043 $70.74 _84~957 _84,957.$:!45,0 $=1<093~327 $10,14 328, ,0 1,934 ~145,0 _48.~,2~ $70,74 7 _o,74 47_'7,314 6o,o43 70,7fl4 _53_7_,_3.5L $7~)~74=$145a0 _6_9_8,10! _$1~09~327

5 Exhibi!2 COMBI_NED~STATE~ME~NTOFR EVENU~EXPENDITURESAND TerebomleParishFireDistrictNo.6 _GOVERNMENTALFUNDTYPES FortheyearendedDecember31,196 Total RevenUgS General Debt(Memorandum Taxes lntergovernmental: $23,643$59,48 Serv!ce_Only) $293,091 S,tateofLouisiana: Staterevenuesharing Chargesforservices Fireinsurancetax Suplementalpay 6,371 7,949 Miscelaneous-interest Totalrevenues 28,816_3,169 5,723 1,40 6,371 7,949 5,723 1, , ,519?L985 Expenditures Curent: GeneralGovernment: Advaloremtaxadjustment Advalolemtaxdeductions I1, ,121 1,14 Totalgeneralgovernment!2,J ,265 PublicSafety: Personalservices Supliesandmaterials 108,36 Otherservicesandcharges 29,12 Repairsandmaintenance Capitalexpenditures 24,654 5, ,36 29,12 56,17 DebtService: Totalpublicsafety 3.0,3S) 362 _.30~53 24, ,602 Principalretirement Interestandfiscalcharges 40,0 40,0 Totaldebtservice ExcesofRevenuesoverExpenditures Totalexpenditures 269,409 51,718 51,718 FundBalances 23,493 5_.5,176 7,41 _31},}85 30,934 Beginingofyear 453,821 52,602 Senotestofinancialstatements Endofyear $473~14 $60~_0.4_3 $ 506,

6 ~BS Revelues Taxes ~BUDGETANDACTUAL- JND`TYPE-GENERALFUND TereboneParislhFireDistrictNo.6 FortheyearendedDecember3l,196 lntergovernmental: StateofLouisiana: Staterevenuesharing Fireinsurancetax Suplementalpay Chargesforservices Miscelaneous-interest Totalrevenues Expenditurcs Curent: GeneralGovert'lment: Advaloremtaxadjustment Advaloremtaxdeductions B_u~d~_e.t_ $23,630 6,370 7,90 1,50 24,50 Actual $23,643 6,37l 7,949 5,723 1,40 _28,816 Exhibit3 Variance Favorable ~UnfavoLable) 149 5,723(10) 4,316 2_73.p09 2_83902._.!0,02 1,025 1!,?0o Totalgeneralgovernment 12,325 PublicSafety: Personalservices Supliesandmaterials Otherservicesandcharges Repairsandmaintenance Capitalexpenditures Totalpublicsafety Totalexpenditures Exces(Deficiency)ofRevenues OverExpenditures FundBalance Beginingofyear Endofyear Senotestofinancialstatements 106,80 28,250 63,50 37,0 323, _ ,36 29,12 5,75 24,654 30_ (1,56) (862) 7,745 12,346 _57, ,716 (62,25) 23,493 85, ~ $ $85,7!8

7 Exhibit4 TereboneParishFireDistrictNo.6 December31,196 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES TheacountingandreportingpoliciesoftheTereboneParishFireDistrictNo.6(the Dislrict)confomltogeneralyaceptedacounthlgprinciplesasaplicabletogovernments. Thefolowingisasumaryofcertainsignificantacountingpolicies: a)reportingentity TileDistrictisacomponentunitoftheTeITeboneParishConsolidaledGovernment (theparish)andasuch,thesefinancialstatementswilbeincludedmthe comprehensiveanualfinancialreport(cafr)oftheparishfortheyearended December31,196. TheDistricthasreviewedalofitsactivitiesandeterminedthatherearenopotemia componentunitswhichshouldbeincludedinitsfinancialstatements. b)fundacounting TheDistriclusesfundsandacountgroupstoreportonitsfinancialpositionandthe resultsofitsoperations.fundacountingisdesignedtodemonstratelegalcompliance andtoaidfinancialmanagementbysegregatingtransactionsrelatedlocertain governmentfunctionsoractivities. Afundisaseparaleacotmtingentitywithaself-balancingsetofacounts.Anacoun! group,ontheotherhand,isafinancialreportingdevicedesignedtoprovideacountabilityforcertainasetsandliabilitiesthatarenotrecordedinthefundsbecausethey donotdirectlyafectnetexpendableavailablefinancialresources. GovernmentalFunds

8 (Continued) Exhibit4 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) b)fundacounting(continued) GeneralFund-TheGeneralFundisthegeneraloperatingfundoftheDistrict. Itisusedtoacoutforesoarcesexcepthosethatarerequiredtobeacounted ibrinanotherfund. DebtServiceFund-.TheDebtSeiwiceFundisusedtoacountfortire acumulationofresourcesfor,andfirepaymentof,generalong-termdebtprivrcipal,interestandrelatedcosts. AcountGroup TheGeneralFixedAsetsAcountGroupisusedtoacountforfixedasetsnot acountedforinproprietary,ortrustfunds.thegenerallong-termdebtaceotmt Groupisusedtoacountforgeneralong-termdebtandcertainotherliabilitiesthat arenotspecificliabilitiesofproprietaryortrustfunds, c)basisofacounting BasisofacountingreferstowhcJ!revenuesandexpendituresarerecognizedinthe acoulsandreportedinthefinancialstatements.basisofacountingrelatestothe ~m~ofthemeasurementsmade,regardlesofthemeasurementfocusaplied. Advaloremtaxesforthe196taxrolbecomedueonNovember15,196andbecome delinquentondecember3]st."dlesetaxesareleviedtofinancethebudgetforthe197 yearandwilberecordedin197as197revenue. AlGovenunentalFundsareacountedforusingthemodifiedacrualbasisof acomating.theirevenuesarerecognizedwhentheybecomemeasurablemadavailable asnetcunentasets.advaloremtaxesandtherelatedstaterevenueshaving (lntergovenmaentalrevenues)arerecordedasrevenueintheperiodforwhichlevied, thusthe,196propertytaxeswhicharebeingleviedtofinancethe197budgetave recordedasrevemleforthe197fiscalyear.the196taxlevyisrecordedasdefered revenueinthedistrict's196financialstatements.miscelaneousrevenuesarc recordedasrevenueswbenreceivedincashbythedistrictbecausetheyaregeneraly notmeasurableuntilactualyreceived. Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacounting whentberelatedfundliabilityisinctn3'ed.anexceptiontothisgeneralrideisprincipal andinterestongeneralong-termdebtwhichisrecognizedwhendue.

9 (Continued) Exhibit4 NoteI-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) d)operatingbudgetarydata AsrequiredbytheLouisianaRevisedStatutes39:1303,theBoardofComisioners (theboard)adoptedabudgetfortiledistrict'sgeneralfund.tilebudgetalypraclices includepublicnoticeoftireproposedbudget,publicinspectionoftheproposedbudget andapublicbearingonthebudgetpriortoadoption.anyamendmentinvolvingthe transferofmoniesfromonefunctiontoanotherorincreasesinexpendituresmustbcapprovedbytheboard.thedistrictamendeditsbudgetonceduringtheyear.albudgetedamotmtswhicharenotexpended,orobligatedthroughcontracts,lapsealyearend. TheGeneralFundbudgetisadoptedonabasismaterialyconsistentwflhgeneraly aceptedacountingprinciples. e)baddebts ThefinancialstatementsfortheDistrictcontainoalowm~ceforbadebts. Uncolectibleamountsdueforadvaloremtaxesarerecognizedasbadebtsathelime hfomlalionbecomesavailablewhichwouldindicatetheuncolectibilityoftheparticular receivable.theseamountsarenotconsideredtobematerialilrelationtothefinancial positionoroperationsofthefunds. f)investments Investmentsarestatedatcost,whichaproximatesmarket g)generalfixedasets Fixedasetsusedingovernmentalfundtypeoperations(generalfixedasets)a~e acotmtedforinthegeneralfixedasetsacountgroupratherthaningovenmlcntal fimds.theacountgroupisnotafund.itisconcernedonlywiththemeasurementof financialposition. Itisnotinvolvedwitbthemeasurementofresultsofoperations.Publicdomaiu ("infrastructure")generalfixedasetsconsistingofcertainimprovementsothelhan buildingsincludingroads,bridges,curbsandguters,stretsaudsidewalks,andrainage systemsarenotcapitalizedalongwithothergeneralfixedasets.nodepreciatiolhas benprovidedongeneralfixedasets. Alfixedasetsarevaluedat:historicalcostorestimatedhistoricalcostifactua historicalcostisnotavailable.donatedfixedasetsarevaluedatheirestimatedfat valueonthedatedonated.

10 (Continued) Exhibit4 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) h)long-termdebt Theacotmfingandreportingtreatmentapliedtothelong-telandebtasociatedwitha ftmdaredeterminedbyitsmeasurementfocus.algovenmlentalfundsareacotn~ted foronaspendingor"financialflow"measurementfocus.thismeansthatonlycuncnt asetsandcurentliabilitiesaregeneralyincludedontheirbalanceshets.thcir reportedfundbalance(netcurenlasets)isconsideredameasureof"available spendableresources".gow,~mentalfundoperatingstatementspresentinc:cascs (revenuesandotherfinancingsources)andecreases(expendituresandotherfinancing uses)inetcurentasets.acordingly,theyaresaidtopresentasumaryofsonrcs andusesof"availablespendableresources"duringaperiod. Long-termliabilitiesexpectedtobefinancedfromgovermnentalfimdsareacotmled forinthegenerallong-termdebtacountgroup,notinthegovenunentalflmds. TheLong-TermDebtAcountGroupisnota"fund".Itisconcernedonlywiththe measurementofinancialposition.itisnotinvolvedwiththemeasurementofrcsults ofoperations. i)vacationandsickleave ForTelxeboneParishFireDistrictNo.6,employeswhohavebenemployedgleater thanoneyeareceivetwoweksofvacationperyear.forthosemployesemployed lesflanoneyear,theyreceiveonewekofvacationperyear.thereisnoacunmlated vacationforthedistrictatdecember31,196. TeneboneParishFireDisWictNo.6folowstheCivilServiceSickLeavepolicywhich alowsthemtoreceive52weksperincidentandthereisnoacumulatedsickleavefor tbedistrict. j)encumbrances Encumbranceacounting,underwhichpurchaseorders,contractsandotbercomitmentsarerecordedinthefundgeneraledgers,isnotutilizedbytheDistrict. k)totalcolumnsoncombinedstatements-overview Thetotalcolumnsonthecombinedstatements-overviewarecaptionedmemolandum onlytoindicatethatheyarepresentedonlytofacilitatefinancialanalysis.datainthesc columnsdonotpresentfinancialpositionoresultsofoperations,inconfol~mitywith

11 (Continued) Exhibit4 Note1-SUMMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) k)totalcolumnsoncombinedstatements-overview(continued) generalyaceptedacolmfingprinciples.neitherisuchdatacomparabletoaconsolidation.interfimdeliminationshavenotbenmadeintheagregationofthisdala. Note2-CAStlANDINVESTMENTS ThePeaishmaintainsacashandinvestmentpolthatisavailableforusebyalfunds.Eacl fundtype'sportionofthispolisdisplayedonthecombinedbalanceshetas"cash"and "investmerlts." BankDeposits: Statelawrequiresdeposits(cashandcertificatesofdeposits)ofalpoliticalsubdivisions befulycolateralizedataltimes.aceptablecolateralizationincludest'd1cinsurance andthemarketvalueofsecuritiespurchasedandpledgedtothepoliticalsubdivision. ObligationsoftheUnitedStates,theStateofLouisianandcerlainpoliticalsubdivisio1~are alowedasecurityfordeposits.obligationsfurnishedasecuritymustbeheldhythc politicalsubdivision,orwithanunafiliatedbank,orwithatrustcompanyfortheacount ofthepoliticalsubdivision.inacordancewithstatelawalcashandepositswele c~la~eralized. Cashandepositsarecategorizedintotln'ecategoriesofcreditrisk. Category1includesdepositscoveredbyfederaldepositolyinsuranceorbycolalclal heldbythedistrictoritsagentinthedistrict'sname. Category2includesdepositscoveredbycolateralheldbythepledgingfinancia institution'sttustdepaflment,oritsagentinthedistrict'sname. Category3includesdepositscoveredbycolateralheldbythepledgingfinancial institution,oritstrustdepartmentoragentbutnotinthedistrict'sname,andep~,sits whichareuninsuredoruncolateralized. 10

12 unafiliatedbanksfortheacounloftheparish.thegovernmentalacountingstandards depositinexcesofthefdicinsurancewerecolateralizedbysecuritiesheldby pledgedsecuritiesareconsidereduncolaleralizedundertheprovisionsofgasbstacemen~ Board(GASB),whichpromulgatesfilestandardsforacountingandfinancialreportingfor staleandlocalgovernments,considersthesesecuritiesuncolateralized.eventhoughlhe toadveliseandselthepledgedsecuritieswithin10daysofbeingnotifiedbythedeposilor 3,LouisiaJlaRevisedStatute39:129unposesastatutoryrequirementonthecustodialhank thathefiscalagenthasfailedtopaydepositedfundsupondemand, Investments: StatestalaltesauthorizetheDistrictoinvestintheU.S.Treasury,agenciesand instrumentalities;comercialpaperateda1,2,or3;repurchaseagrements;andthe StateofLouisianaAsetManagementPol. bythenlityatyearend. TheDistrict'sinveslxnentsarecategorizedtogiveanindicationofthelevelofriskasumed CategoryIincludesinvestmentsthatareinsuredoregisteredorforwhichthesecu~ilies areheldbythedistrictoritsagentinthedistrict'sname. Category2includesuninsuredanduregisteredinvestmentsforwhichthesecuriliesare heldbythecounterpal/y'strustdepartmentoragentinthedistrict'sname.

13 Note2-C A AsociationNotes _-_ 76,84576,84576,94_fi6 Totals ~=~~-$ ,41679,525 lnvestnaentsnotsubject tocalegorization: LouisianaAset ManagementPol (LAMP).123, InvestmentsintheLouisianaAsetManagementPolisnotcategorizedastocreditrisk Totalinvestments $202,938$203,047 hecauseitisnotevidencedbysecuriliesthatexistinphysicalorhokentxyform. AreconciliationofdepositsandinveslmentsashownoltheCombinedBalanceShectfor thedistrictisasfolows: Canyingamountofdeposits Caryingamountofinvestments $349, Total Cash hlvestments $7,125 54,895 Total

14 (Continued) Exhibit4 Note3-PROPERTYq~XES January1foralrealproperty,merchandisemidmovablepropertylocatedintheParish. PropertytaxesareleviedeachNovember1ontheasesedvaluelistedasoftheprior AsesedvaluesarestablishedbytheTereboneParishAsesor'sOficeandtheState revaluationofalpropertyisrequiredtobecompletednolesthaneveryfouryems.the TaxComisionatpercentagesofactualvalueaspecifiedbyLouisianalaw.A lastrevaluationwascompletedforthelistofjanuary1,196.taxesaredueandpayable throughthetaxsaledate,whichisthelastwednesdayinjune.propertiesforwhichthe December31withinterestbeingchargedonpaymentsafterJanuary1.Taxescalbepaid taxeshavenotbenpaidaresoldfortheamountofthetaxes.thetaxratefortheyear endeddeceinber31,196was$9.0per$1,0ofasesedvaluationonpropertywithin withinfiledistrictand$2.29per$1,0ofasesedvaluationforthepaymentofplincipal FireDistrictNo.6forthepurposeofmaintainingandoperatingfireprotectionfacilities andinteresl.asindicatedinnolelc,taxesleviednovember1,196areforbudgeted expendituresin197andwilberecognizedasrevenuesin197. Note,1-CHANGESINGENERALFIXEDASETS Asumaryofcbangesingeneralfixedasetsfolows Balance Landandlmildings _I_L_196_lions JanuaryAdi- Machineryandequipment $7,165 Oficefimfiture,fixtures Constructioninprogres andequipment 25,790 $5,68 Dele-Adjust-December Balance tionsments31,196 4,952 $ 1,647,9036,978 $ $12,853 1,07, Totals 208,802 12,1 Anadjustmentmadein196wasduetoachargeof$7,90deletedin195thatshouldnot havebenremovedandwasadedbacktothefixedasetslistingin196.theother adjustmentwasfor$20sothathebokbalancewouldagretothebalanceofthefixed asetlisting. Constructioninprogresiscomposedof$12,1expendedprimarilyforconstructioncosts asociatedwiththeconstructionofaromaditiontothepointe-aux-chenesstation. 13

15 Note4-CHANGESINGENERALFIXEDASETS(Continued) Exhibit4 (Continued) Asetsacquiredpriorto194totaling$1,025,387areincludedintheGeneralFixedAsets AcountGroupoftheParish.TheasetsasofDecember31,196aremadeupofIhc folowing: Lmldandbuilding Automobiles Machineiyandequipment Oficefurnilure,andequipment Total $54,89 432,603 39,696 8,19 TherewasnochangeinfixedasetsfortheDistrictheldbytheParishin196 NoteS-LONG-TERMDEBT AtDecember31,196,theDistricthadoutstandingpublicgeneraldebtbondslolalmg $145,0bearinginterestfrom6.7%to12%whicharerepayablethroughMarchI,2(109 primarilyfromadvaloremtaxrevenues. ThefolowingisasununawofbondtransactionsoftheDistrictfortheyeaTended December31,196: BondspayableatJanuary1,196 Bondsretired BondspayableatDecember31,196 $185,0 40,0 Theremainingrequirementstoamortizealong-termdebtoutstandingatDecembc~31 196areasfolows:.Ye~u: Principal Thereafter $45,0 45,0(} 5,0 5,0 5,0 A0~fl0_0 Totals_$d_4~! 14 ]nterest $8,763 5,613 3,858 3,496 3, $36,690 Total $53,763 50,613 8,858 8,496 8,132 _51.828

16 Exhibit4 Note8-COMPENSATIONOFBOARDMEMBERS (Continued) NocompensationwaspaidtoBoardMembersfortheyearendedDecember31,196 Note9-SUPLEMENTALPAY InaditiontothecompensationpaidtoTelTeboneParishConsolidatedGovernment's(the Parish)employes,firemenmaybeligibletoreceivesuplementalpay.Eachlypeof employeisgovernedbytheirparticularevisedstatute.theamountofthecompensalion isdeterminedbystatelawandisrevisedperiodicaly. AsperLouisianaRevisedStatute3:202,anyful-time,regularemployeofthepalish fireprotectiondistrictwhoishiredaftermarch3l,1986andwhohaspasedacertified firemen'strainingprogramequaltothenationalfireprotectionasociationstandard101 andwhoispaidtnehundredolarspermonthfi'ompublicfundsiseligiblcfol suplementalpay.theseful-timemployesarecaitiedonthepayrolpaidfromftmds oftheparishobtainedthroughlawfulyadoptedbondisuesorlawfulyasesedtaxes, eitherdirectlyorthroughaboardorcomisionsetupbylaworordinance.employes employedbythefiredistrictsarenoteligibleforsuplementalpayiftheyareprcscntly drawingaretirementordisabilitypension,clericalemployesandmechanicsandfo~those employeswhohavenotpasedacertifiedfiremen'strainin~programbutarehiredat~er March31,1986.Statesuplementalpayforfirefightersmustbetakenintoacountin calculatingfirefighterslongevilypay,holidaypayandovertimepay.theperiodofsclvice forcomputingaditionalcompensationincludespriorserviceofemployeswhohave returnedorwhohereaftereturntosuchserviceprovidedthatserviceinanyparisholfire protectiondistrictfiredepartanentshalbeusedincomputingsuchpriorservicewhich includesful-timemployesofavolunterfiredepartment. AsofDecember31,196,theDistricthasrecognizedrevenueandexpendituresfor$5,723 insalarysuplementsthathestateoflouisianahaspaidirectlytothedistrict's employes. Note10-RISKMANAGEMENT TheDistrictparticipatesinTen-ebormeParish's(oversightentity)riskmanagementiuterl~al sea-vicefundsforgeneraliabilityandworkerscompensation.thedistrict'spremiumsfor generaliabilityisbasedonvariousfactorsuchasoperationsandmaintenancebudget, exposureandclaimsexperience.thepremiumsforworkerscompensationisbasedona fixedpercentageofpayrol.terebom~eparishandlesalclaimsfiledagainsthei)istlict. TheDistrictdoesnothaveanyaditionalexposureunlestheclaimsexcedtheParish's insurancecontracts. 16

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18 BourgeoisBenet STRUCTUREBASEDONANAUDITOFGENERAl.PI~RPO~qi~. WITtGOVERNMENTAUDITINGSTANDARDS TotileBoardofComisioners, TeneboneParishFireDistrictNo.6 Montegut,Louisiana. No.6(theDistrict),acomponentunitoftheTeneboneParishConsolidatedGovenuent,Staleof WehaveauditedthegeneralpurposefinancialstatementsofTereboneParishFirel)ist ict Louisiana,asofaudforfileyearendedDecember3I,196,andhaveisuedoureporthereondated May6,197. Weconductedourauditinacordancewithgeneralyaceptedatditingstandardsand standardsrequirethatweplanandperformtheauditobtainreasonableasuranceaboutwhetherthe generalpurposefinancialstatementsarefreofmaterialmistatement. isuedbythecomptrolergeneraloftheunitedstates.those controlstructure.infulfilingtlfisresponsibility,estimatesandjudgmentsbymanagementarerequired ThemanagementoftheDistrictisresponsibleforestablishingandmaintaininganinternal toasesthexpectedbenefitsandrelatedcostsofinternalcontrolstructurepoliciesandprocedmcs. Theobjectivesofaninternalcontrolstructurearc:toprovidemanagemeutwithreasonable,hutnot absolute,asurancethatasetsaresafeguardedagainstlosfiomunauthorizeduseordisposition,and thatransactionsarexecutedinacordancewithmauagemenfsauthorizationandrecordedpropc~ly topermithepreparationofganeralpurposefinancialstatementsinacordancewithgeneralyacepted acountingprinciples.13ecauseofinherentlimitationsinanyinternalcontrolstructure,en-orsoj iregularitiesmayneverthelesocuremdnotbedetected.also,prqiectionofanyevaluationofthe structure,tofutureperiodsisubjectotheriskthatproceduresmaybecomeinadequatebecauscof changesinconditionorthathefectivenesofthedesignandoperationofpoliciesandprocedurcs maydeteriorate. F~O.Box2160 blouse.ca?0361-2t6e~ Phone~504) kax/go4)1~ WestTunelBlvḍ,Suite430 ~O.Box6O60 NewOrleans.LA O HeritagePlaza,SORe80 Phone~SCM) Fax(S04) WestSecondStret EO.Box1205 Thihodaux.LA70302t20S Phoae(S04~47.S94~

19 DislrictforfileyearendedDecember31,196,weobtainedanunderstandingontheinternalcontrol Inplaningantiperformingourauditofthegeneralpurposefinancialstatementsofthe structure.withrespectotheinternalcontrolstructure,weobtainedanunderstandingofthedesign ofrelevantpoliciesandproceduresandwhethertheyhavebenplacedinoperation,gadwcasesed controlriskinordertodetermineourauditingproceduresforthepurposeofexpresingouropinion onthe'.generalpurposefinancialstatementsandnotoprovideanopinionontheinternalcontrol structure.acordingly,wedonotexpresuchanopinion. intheinternalcontrolstructurethatmightbematerialweaknesesunderstandardsestablishedbythe Ourconsiderationoftheimernalcontrolstructurewouldnotnecesarilydisclosealmalters AmericanInstituteofCertifiedPublicAcountants.Amaterialweaknesisaconditioninwhichlhc designoroperationofoneormoreoftheinternalcontrolstructurelementsdoesnotreducetoa relatiw~lylowleveltheriskthaterorsoriregularitiesinamountsthatwouldbematerialinrelation tothegeneralpurposefinancialstatementsbeingauditedmayocurandnotbedetectedwithinalimcly periodbyemployesinthenormalcourseofperforntingtheirasignedfunctions.wenotednomaters involvingtheh~temalcontrolstructureanditsoperationsthatweconsidertobematerialweak~eses. StateofLouisianandtheLegislativeAuditorfortheStateofLouisiana.However,thisrepot!isa ThisreportisintendedfortheinformationoftheBoardofComisioners,management,lhe materofpublicrecordanditsdistributionisnotlimited. Honla,La., May6,197 CertifiedPublicAcountants 18

20 BourgeoisBenet TotileBoardofComisioners, TenebomleParishFireDistrictNo.6 Montegnt,Louisiana. No,6(theDistrict),acomponentunitoftheTefeboneParishConsolidatedGovenunent,Statcof Wehaveauditedfl~egeneralptuposefinancialstatementsofTerebom~eParishFireI)ist~ict Louisiana,asofandfortheyearendedDecember31,196,andhaveisuedoureporthereo1~dated May6,197. Weconducledourauditinacordancewithgeneralyaceptedauditing standardsrequirethatweplanandperformtheauditobtainreasonableasuranceabo isuedbythecomptrolergeneraloftheunited States.Those generalpurposefi~ancialstatementsarefreofu~aterialmistatement. utwhethelthe standa dsand reportedhereinunder Theresultsofourtestsdisclosednoinstancesofnoncompliancethatarerequired~obe StateofLouisianandtheLegislativeAuditorfortheStateofLouisiana.However,thisreporlisa ThisreportishltendedfortheinformationoftheBoardofComisioners,managemenl,thc materofpublicrecordanditsdistributionisnolimited. CerlifiedPublicAcountants Houma,La., May6, WestTunelBlvd.,Suite430 PO.Box2168 Houmz.tA7036t-2~6[~ Phone(504)86B-0f39 F~xISC~4)~ /~O.Box6060 NewOrleans.LA ~erirageplaza.suite80 Phone(SC~l) WestSecondSt,~e~ ~ax~5~,4)b3'3-9~3 PO.BOx120S Thibodaox.LA Phone(504~47.524]

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22 BourgeoisBenet COMMUNICATIONSWITHBOARDOFCOMISIONERS TotileBoardofComisioners, TereboneParishFireDistrictNo.6 Montegut,Louisiana. endeddecember3l,196,wearerequiredtocomunicatetotheboardofcomisionerscertain InfulfilingouresponsibilityasTerebouneParishFireDistrictNo.6auditorsfortheyear matersrelatedtotheconductofouraudit. 1)AUDITOR'SRESPONSIBILITYUNDERGENERALYACEPTEDA1)'_LNL;. Ourauditwasconductedinacordancewithgeneralyaceptedauditingstandmdsand whichrequirethatweplanandperformtheauditobtainreasonableasurm~cabout isuedbythecomplxolergeneraloftheunitedstates whetherthestatementsarefreofmaterialmistatements. Asrequired,separateletershavebenisuedoninternalcontrolandcompliancewithlaws andregulations. SIGNIFICANTACO!INTINfPOLICIES SignificantacountingpoliciesaredescribedinNote1tothegeneralpurposefiuancia statements.nonewacountingpolicieswereadoptednorequiredtobeadoptedforthe yearendeddecember31,196. SIGNIFICANTAIJDITAD.ILqTMENT Wedidnotinitiateanysignificantauditadjustmentduringourecentaudit. adjustmentwasmade. managementoftereboneparishfiredistrictno.6andshouldnotbeusedforanyotherpurposes. ThisinformationisintendedsolelyfortheuseoftheBoardofComisionersandthe L~.e Houmta,La., CertifiedPublicAcountants 134OWestTunel~31vḍ,Suite430 EO.Box2168 Houma.LA May6,197. Phone(S04)8gB-0139 ~304)~ AcountantsIConsult~tsNewOrleans,LA ALimitedLiabilityCompanyHeritagePla~.Suite80 CertifledPublicIEO.i~ox6060 Phone~S04)g F~x(504) WestSecondStret EO.Box120~ Thibodaux.LA70302J205 Phone( s~4~