schedulehasbensubjectedtotheauditingproceduresapliedintheauditofthegeneral

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2 (AProfesionalAcountingCorporation) DONM.McGEHE Ruston,Louisiana NorthTrenton P.O.BOX134 NDEPENDENTAUDITOR'SREPORTONSCHEDULE OFEDERALFINANCIALASISTANCE HonorableStephenHamons,Mayor TownofDubach Dubach.Louisiana71235 andboardofalderman fundandacountgroupfinancialstatementsofthetownofdubach,louisiana,asofandfor theyearendedjune30,196,andhaveisuedmyreporthereondatedoctober8,196. Ihaveauditedthegeneralpurposefinancialstatementsandthecombiningandindividual ThesegeneralpurposefinancialstatementsaretheresponsibilityoftheTown'smanagement. basedonmyaudit. Myresponsibilityistoexpresanopiniononthesegeneralpurposefinancialstatements tconductedmyauditinacordancewithgener&tyaceptedaudit[nc3standards,gqvernment AuditingStanda(_d~,isuedbytheComptrolerGeneraloftheUnitedStates,andthe provisionsofoficeofmanagementandbudgetcirculara-128,"auditsofstateandlocal Governments."ThosestandardsandOMBCircularA-128requirethatIplanandperformthe auditobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthe;generalpurposefinancialstatements.an thatmyauditprovidesareasonablebasisformyopinion, auditalsoincludesasesingtheacountingprinciplesusedandsignificantestimatesm~d~bymanagementaswelasevaluatingtheoveralfinancialstatementpresentation.ibelieve., Myauditwasconductedforthepurposeoforminganopiniononthegeneralpurpose financialstatementsofthetownofdubach,louisiana,takenasawhole.theacompanyinq ScheduleofFederalFinancialAsistanceispresentedforpurposesofaditionalanalysis:~f~, isnotarequiredpartofthegeneralpurposefinancialstatements.theinformationinthat schedulehasbensubjectedtotheauditingproceduresapliedintheauditofthegeneral purposefinancialstatementsand,inmyopinion,isfairlypresentedinalmaterialrespectsin relationtothegeneralpurposefinancialstatementstakenasawhole. October8.196 (318)25-954~FAX(318)

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6 Pro~s~natAcountingCo~o~hdn) DONM.McGEHE Ruston.Louisiana NorthTrenton P.O.Box134 INDEPENDENTAUDITOR'SREPORTONCOMPLIANCE WITHTHEGENERALREQUIREMENTSAPLICABLE!TO FEDERALFINANCIALASISTANCEPROGRAMS HonorableStephenHamons,Mayor TownofDubach Dubach.Louisiana71235 andboardofalderman andacountgroupfinancialstatementsofthetownofdubach,louisiana,asofandfortheyear endedjune30,196,andhaveisuedmyreporthereondatedoctober8,196. Ihaveauditedthegeneralpurposefinancialstatementsandthecombiningandindividualfund IhaveapliedprocedurestotestheTown'scompliancewiththefolowingrequirements aplicabletoitsfederalfinancialasistanceprogram,whichisidentifiedinthescheduleof FederalFinancialAsistance,fortheyearendedJune30,196: PoliticalActivity Davis-BaconAct CivilRights CashManagement RelocationAsistanceandRealPropertyAcquisition Federa~Financia~Reports AlowableCosts/CostPrinciples Drug-FreWorkplaceAct AdministrativeRequirements Governments."Myproceduresweresubstantialylesinscopethananaudit,theobjectiveof MyprocedureswerelimitedtotheaplicableproceduresdescribedintheOficeof whichisthexpresionofanopiniononthetown'scompliancewiththerequirementslisted ManagementandBudget's"ComplianceSuplementforSingleAuditsofStateandLocal intheprecedingparagraph.acordingly,idonotexpresuchanopinion. Withrespectotheitemstested,theresultsofthoseproceduresdisclosednomaterialinstances ofnoncompliancewiththerequirementslistedinthesecondparagraphofthisreport.with respectoitemsnotested,nothingcametomyatentionthatcausedmetobelievethathe TownofDubach,Louisiana,hadnotcomplied,inalmaterialrespects,withthoserequirements. Also,theresultsofourproceduresdidnotdiscloseanyimaterialinstancesofnoncompliance withthoserequirements. 318)25-954~FAX(318)

7 HonorableStephenHamons,Mayor TownofDubach andboardofalderman October8,196 PAGETHRE tnotedcertainmatersinvolvingtheinternalcontrolstructureanditsoperationthaticonsiderto bereportableconditionsunderstandardsestablishedbytheamericaninstituteofcertified PublicAcountants.Reportableconditionsinvolvematerscomingtomyatentionrelatingto significantdeficienciesinthedesignoroperationoftheinternalcontrolstructurethat,inmy judgment,couldadverselyafecthetown'sabilitytoadministerfederalfinancialasistance programsinacordancewithaplicablelawsandregulations. ControlsovercashdisbursementsoftheComunityDevelopmentBlockGrantare inadequatebecauseoflackofsegregationofdutiesduetolimitedpersonel. Amaterialweaknesisareportableconditioninwhichthedesignoroperationofoneormoreof theinternalcontrolstructurelementsdoesnotreducetoarelativelylowleveltheriskthat noncompliancewithlawsandregulationsthatwouldbematerialtoafederalfinancialasistance programayocurandnotbedetectedwithinatimelyperiodbyemployesinthenormal courseofperformingtheirasignedfunctions. Myconsiderationoftheinternalcontrolstructurepoliciesandproceduresusedinadministering federalfinancialasistancewouldnotnecesarilydisclosealmatersintheinternalcontrol structurethatmightbereportableconditionsand,acordingly,wouldnotnecesarilydiscloseal reportableconditionsthatarealsoconsideredtobematerialweaknesesasdefinedabove. However,Inotedthereportableconditiondescribedaboveinvolvingtheinternalcontrol structureanditsoperationtobeamaterialweaknesasdefinedabove.thisconditionwas consideredindeterminingthenature,timing,extentoftheproceduresinmyauditofthe financialstatementsofthetownofdubach,louisiana,fortheyearendedjune30,196. ThisreportisintendedfortheinformationofmanagementoftheTownofDubach,Louisiana DivisionofAdministration,andtheLegislativeAuditor.However,thisreportisamaterofpublic recordanditsdistributionisnotlimited. October8.196 (49)

8 HonorableStephenHamons,Mayor andboardofalderman TownofDubach October8,196 PAGETWO againstlosfromunauthorizeduseordisposition,thatransactionsarexecutedinacordance withmanagement'sauthorizationandrecordedproperlytopermithepreparationofgeneral purposefinancialstatementsinacordancewithgeneralyaceptedacountingprinciples,and thatfederalfinancialasistanceprogramsaremanagedincompliancewithaplicablelawsand regulations.becauseofinherentlimitationsinanyinternalcontrolstructure,erors,iregul~ritic:.'~ orinstancesofnoncompliancemayneverthelesocurandnotbedetected.also,projectionof anyevaluationofthestructuretofutureperiodsisubjectotheriskthatproceduresmay becomeinadequatebecauseofchangesinconditionsorthathefectivenesofthedesign andoperationofpoliciesandproceduresmaydeteriorate. Forthepurposeofthisreport,Ihaveclasifiedthesignificantinternalcontrolstructurepolicies andproceduresusedinadministeringfederalfinancialasistanceprogramsinthefolowing categories: Cash RevenueandReceivables ExpendituresforGodsandServices andacountspayable PayrolandRelatedLiabilities SinglE:Audit SpecificRequirements: TypesofServices Eligibility Matching,Level-of-efort,orearmarking Reporting CostAlocation GeneralRequirements: PoliticalActivity Davis-BaconAct CivilRights CashManagement RelocationAsistanceand RealPropertyManagement FederalFinancialReports AlowableCosts/CostPrinciples Drug-FreWorkplaceAct AdministrativeRequirements Foraloftheinternalcontrolstructurecategorieslistedabove,Iobtainedanunderstandingof thedesignofrelevantpoliciesandproceduresandeterminedwhethertheyhavebenplaced inoperation,andiasesedcontrolrisk. DuringtheyearendedJune30,196,theTownofDubach,Louisiana,expended10%ofits totalfederalfinancialasistanceunderamajorfederalfinancialasistanceprogram. Iperformedtestsofcontrols,asrequiredbyOMBCircularA-128,toevaluatethefectivenes ofthedesignandoperationofinternalcontrolstructurepoliciesandproceduresthati consideredrelevantopreventingordetectingmaterialnoncompliancewithspecific requirements,generalrequirements,andrequirementsgoverningclaimsforadvancesand reimbursementsandamountsclaimedorusedformatchingthatareaplicabletothetown's majorfederalfinancialasistanceprogram,whichisidentifiedintheacompanyingscheduleof FederalFinancialAsistance.Myprocedureswerelesinscopethanwouldbenecesaryto renderanopinionontheseinternalcontrolstructurepoliciesandprocedures.acordingly,ido notexpresuchanopinion. (48)

9 (AProfesionalAcountingCorporation) DONM.McGEHE Ruston,Louisiana NorthTrenton P.O,BOX134 NDEPENDENTAUDITOR'SREPORTONINTERNAL CONTROLSTRUCTUREUSEDINADMINISTERING FEDERALFINANCIALASISTANCEPROGRAMS HonorableStephenHamons,Mayor TownofDubach Dubach.Louisiana71235 andboardofalderman Ihaveauditedthegeneralpurposefinancialstatementsandthecombiningandindividualfund andacountgroupfinancialstatementsofthetownofdubach,louisiana,asofandfortheyear endedjune30,196,andhaveisuedmyreporthereondatedoctober8,196.ihavealso auditedthecomplianceofthetownofdubach,louisiana,withrequirementsaplicableto majorfederalfinancialasistanceprogramsandhaveisuedoureporthereondatedoctober Iconductedmyauditinacordancewithgeneralyaceptedauditingstandards; GovernmentAuditinqStandards,isuedbytheComptrolerGeneralofTheUnitedStates;and Ofice,ofManagementandBudget(OMB)CircularA-128,"AuditsofStateandLocal Governments."ThosestandardsandOMBCircularA-128requirethatIplanandperformthe auditobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatementandaboutwhetherthetownofdubach,louisiana,complied withlawsandregulations,noncompliancewithwhichwouldbematerialtoamajorfederal financialasistanceprogram. InplaningandperformingmyauditfortheyearendedJune30,196,Iconsideredtheinternal controlstructureofthetownofdubach,louisiana,inordertodeterminemyauditing proceduresforthepurposeofexpresinganopiniononthegeneralpurposefinancial statementsofthetownofdubach,louisiana,andonthecomplianceofthetownofdubach, Louisiana,withrequirementsaplicabletomajorprogramsandtoreportontheinternal controlstructureinacordanceombcirculara-128.thisreportadresesmyconsideration ofinternalcontrolstructurepoliciesandproceduresrelevantocompliancewithrequirements aplicabletofederalfinancialasistanceprograms.ihaveadresedinternalcontrolstructure policiesandproceduresrelevantomyauditofthegeneralpurposefinancialstatementsina separatereportdatedoctober8,196. Themanagementofthel-ownofDubach,Louisiana,isresponsibleforestablishingand maintaininganinternalcontrolstructure.infulfilingthisresponsibility,estimatesandjudgments bymanagementarerequiredtoasesthexpectedbenefitsandrelatedcostsofinternal controlstructurepoliciesandprocedures.theobjectivesofaninternalcontrolstructureareto providemanagementwithreasonable,butnotabsolute,asurancethatasetsaresafeguarded 318)25-954~FAX(318)

10 (AProfesionalAcountingCorporation) DONM.McGEHE Ruston.Louisiana NorthTrenton P.O.Box134 FINANCIALSTATEMENTSPERFORMEDINACORDANCE IND[-PENDENTAUDITOR'SREPORTONCOMPLIANCE BASEDONANAUDITOFGENERALPURPOSE WITHGOVERNM_.ENTAUDITINq.STANDARDS HonorableStephenHamons,Mayor TownofDubach Dubach.Louisiana71;.~35 andboardofalderman IhaveauditedthegeneralpurposefinancialstatementsoftheTownofDubach,Louisiana,as ofandfortheyearendedjune30,196,andhaveisuedmyreporthereondatedoctober Iconductedmyauditinacordancewithgeneralyaceptedauditingstandards,and GovernmentAudit~ng.S_tandards,isuedbytheComptrolerGenera~oftheUnitedStates. ThosestandardsrequirethatIplanandperformtheauditobtainreasonableasurance aboutwhetherthefinancialstatementsarefreofmaterialmistatement. Compliancewithlaws,regulations,contracts,andgrantsaplicabletotheTownofDubach Louisiana,istheresponsibilityoftheTown'smanagement.Aspartofobtainingreasonable asuranceaboutwhetherthefinancialstatementsarefreofmaterialmistatement,i performedtestsofthetown'scompliancewithcertainprovisionsoflaws,regulations, contracts,andgrants.however,theobjectiveofmyauditofthegeneralpurpose financialstatementswasnotoprovideanopiniononoveralcompliancewithsuch provisions.acordingly,idonotexpresuchanopinion. Theresultsofmytestsdisclosednoinstancesononcompliancethatarerequiredtobe ThisreportisintendedfortheinformationofmanagementoftheTownofDubach,the reportedunderg.o_vernmentauditings_tandards materofpublicrecordanditsdistributionisnotlimited. LouisianaDivisionofAdministration,andtheLegislativeAuditor.Howew;r,thisreportisa CertifiedPublicAcountant October8.196 (318)25-954,FAX(318)

11 TOWNOFDUBACH,LOUISIANA GENERALFUND STATEMENTOFREVENUES,EXPENDITURES,AND CHANGESINFUNDBALANCE-BUDGETANDACTUAL FORTHEYEARENDEDJUNE30,196 WITHCOMPARATIVEACTUALAMOUNTS FORTHEYEARENDEDJUNE REVENUES: AdValoremTax Fines FranchiseTax InterestIncome LawEnforcementGrant Miscelaneous OcupationalLicenses OnBehalfRevenue Rent Right-of-WayMaintenance SalesTax TobacoTax TOTAL.REVENUES EXPENDITURES: GeneralandAdministrative FireDepartment PoliceDepartment StretDepartment CapitalOutlay TOTALEXPENDITURES $ 196 _BUDGET 12,50$ 38,850 16,70 19, ,50 4,70 1,80 2,80 36,50 3, ,689 70, ,580 29,510 _42,84 245,70 ACTUAL 13,756$ 42,232 16,696 20,263 1,129 3,237 23,731 4,494 1,80 2,809 43, , ,510 26,571 47, VARIANCE- FAVORABLE ~UNFAVORABLE) 1,256$ 3,382 (4) 763 1,129(183) 1,231 (206) , ,851 (163) 4,070 2,939 _~(4,54~ ACTUAL 10,74 63,702 15,90 19,5050 1,904 23,15 3,120 1,25 2, , ,163 61, ,050 17,429 _38~ ,034 EXCES(DEFICIENCY)OFREVENUES OVFR(UNDER)EXPENDITURES (83,01)(53,524) 29,487(23,871) OTHERFINANCINGSOUl:ICES: OperatingTransferfromOtherFunds SaleofGeneralFixedAsets TOTAl_OTHERFINANCINGSOURCES 0 3,010 3,010 EXCES(DEFICIENCY)OFREVENUES ANDOTHERSOURCESOVER(UNDER) EXPENDITURESANDOTHERSOURCES(80,01) FUNDBALANCE-BEGINING 347,0_0 FUNDBALANCE-ENDING 5, , , $=.26,9$327,282$ 7,68 1, ,51(15,045) (24,28~ Theacompanyingnotesareanintegralpartofthesefinancialstatements (23) $ ~72

12 TOWNOFDUBACH,LOUISIANA GENERALFUND COMPARATIVEBALANCESHETS JUNE30.196AND195 ASETS CashonHand CashinRank Investments AdValoremTaxesReceivable(NetofAlowancefor UncolectibleTaxesof$51and$80,Respectively) TobacoTaxesReceivable StateDeptofTransportationReceivable SalesTaxReceivable DuefromGarbageFund DuefromUtilityFund PrepaidInsurance, InsuranceDeposit TOTALASETS LIABILITIESANDFUNDBALANCE LIABILMES: AcountsPayable AcruedPayrol DeferedRevenue PayrolTaxesPayable TOTALIABILITIES FUNDBALANCE: Unreserved-Undesignated TOTALFUNDBALANCE! TOTALIABILITIESANDFUNDBALANCE $ 2o$ 4o0 48,65243, ,140 5, ,163 2, ,21 1,140 1,405 3, ,306 2,36 1,974 $342L735$37,26_4 $8,6t0$ ,_375 15,_ , , ,21 5, ,72 32,72 $=._342,735$37,264 Theacompanyingnotesarc;anintegralpartofthesefinancialstatements (2)

13 GENERALFUND Toacountforesourcestraditionalyasociatedwithgovernments whicharenotrequiredtobeacountedforinanotherfund.

14 COMBININGANDINDIVIDUALFUND ANDACOUNTGROUP STATEMENTSANDSCHEDULES

15 (19) NOTESTOFINANCIAL.STATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE14-RESTATEMENTOFPRIORYEARFINANCIALSTATF;MENTS AsofJuly1,195,theTownofDubachimplementedGASBStatement24requiringon-behalf paymentstoberecognizedasrevenueandexpenditures.duringtheyearendedjune30, 196,theTowndeterminedtheon-behalfpaymentsfortheyearendedJune30,195.The 195financialstatementswererestatedtoincludeon-behalfpaymentsaspresentedinthe acompanyingfinancialstatements. Therestatementofthe195financialstatementshadnoefectonfundbalance NOTE15-COMUNITYDEVELOPMENTBLOCKGRANT TheTownofDubachwasawardedaComunityDevelopmentBlockGrantinApril,193for SewerTreatmentImprovements.EngineringandconstructionwascompletedinFebruary, 196atatotalcostof$69,317.TheTownwasrequiredtofund10%oftheconstructioncost, whichtotaled$

16 NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE10-OPERATINGLEASE TheTowniscomitedundera10yearbuildingleasendinginDecember,198.Thelease isconsideredtobeanoperatinglease.futureminimumleasepaymentswouldbeasfolows YEARENDING 197 TOTAL 198 $ 1, TheTownsub-leasesthebuildingfor$150permonthunderanoralcontract.During195,a specialarangementwasinefectforpartoftheyear.thisarangementwasmadebythe Townfortheocupantofthebuildingtopay$50monthlyrent.TheTownhadalsonegotiated thatitsrentothelesorbe$50permonthuntilsuchtimeasthecostofanewrofis reimbursedtotheocupant,whichocuredindecember,194. NOTE1-CONTRIBUTEDCAPITAL Duringtheyear,contributedcapitalincreasedbythefolowingamounts ContributedCapital,July1,195 FederalGovernment-Construction Utili~Fund ContributedCapital,June30,196 ImprovementstoSewerTreatmentFacility $1,048,525 $1,585, ,727 NOTE!12-COMPENSATIONPAIDTHEBOARDOFALDERMAN TheamountofcompensationpaideachboardmemberfortheyearendedJune30,196,is asfolows: HerschelCoper HatieGraham SuzoneHaris $ DarelMcAdams SethTatum NOTE!13-ONBI-HAL.FPAYMENTS TOTAL $ O EmployesoftheTownofDubach'sPoliceDepartmentreceivedsalarysuplementsfromthe StateofLouisiana. (18)

17 (17) NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE7-CHANGESINGENERALFIXEDASETS(continued) Asumaryofproprietaryfundtypeproperty,plant,andequipmentatJune30,196,isas folows: Land WaterPlant SewerPlant SewerTreatmentPlant FurnitureandEquipment LesAcumulatedDepreciation Total 1,875,53 Net $1~1~32 _(713,2~ NOTE8-DEDICATIONOFPROCEDSANDFLOWOFUNDS-I/2%SALESAND TheparishofLincoln,inaspecialelectionheldonNovember5,1974,voteda1/2%salesand USETAX usetaxforthepurposeofsolidwastedisposaltheprocedsofthesalestax,afterpaying reasonableandnecesarycostandexpensesofcolectingandadministeringthetaxandcost ofoperatingandmaintainingparishwidesolidwastedisposalfacilitiesandnecesary equipmentinconectiontherewith,isalocatedandividedbetwenthelincolnparishpolice Juryandtheincorporatedmunicipalitiesoftheparishacordingtoaformulabaseduponthe ratiothathepopulationofeachmunicipalityorentitybearstothetotalpopulationoftheparish ashownbythemostrecentfederaldeniaecensus.theprocedsarerestrictedforusein theoperationandmaintenanceofsolidwastecolectionfacilities,includingequipment, furnishings,andotherpropertyinconectiontherewith. Under1heformulaforalocationofproceds,theTownofDubachreceived2.2%ofthefunds availableforalocationduringtheyearendedjune30,196. NOTE9-FUNDDEFICIT Thetotalretainedearningsdeficitintheproprietaryfundof$273,13aroseduetotheTown's continuedwaterandsewer"servicerevenuenotcoveringoperatingcostsandepreciation expense.thedeficitisexpectedtocontinue.therearenoplansforateincreasestoaleviato thisdeficit.

18 NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE2-CASHANDINVESTMENTS TheTownmaintainsitscashandinvestmentacountsinvariousbanks,whichareinsuredby thefederaldepositinsurancecorporation(fdic).fdiccoverageis$10,0foraldemand depositsand$10,0foraltimedeposits(timedepositsaredefinedasanyinterestbearing acount)atjune30,196,thebankbalancewas$7,724andthecaryingamountwas $6,710onon-interestbearingacounts,whichwasalcoveredbyFDICinsurance. InterestbearingacountsatJune30,196,hadabankbalanceof$580,727andcarying amountof$576,580,whichwascoveredbya$20,0fdicinsurancewiththeremainderof $376,580tobecoveredbycolateralotherthanFDICinsurancewhichisheldbythirdparty institutionsinthenameofthetownofdubach. Besidesavingsacountsandcertificatesofdeposit,theonlyothercashtheTownhasis $20ofpetycash.Deposits(cashandcertificatesofdeposit)arecariedatcostwhich aproximatesmarketvalue. NOTE3-ADVALOREMTAXES TaxesareleviedonacalendaryearbasisandaredueonDecember31.TheTownbilsand colectsitsownadvaloremtaxes.forthe195advaloremtaxes,onerateoftaxwaslevied onpropertywithinthecorporatelimits,asfolows: 7.2milsforthegeneralmaintenanceofthetown.Thismilagewasaproved bythetowncouncilinjuly195,andisthemaximumilagethatcanbe FortheyearendedJune30,196,taxesof$13,756wereleviedonproperty.Taxesreceivable asesedwithoutheaprovalofvoters. atjune30,196consistedofthefolowing: TaxesReceivable AlowanceforUncolectibleTaxes _ $925 NetAdVaforemTaxesReceivable $874 _(5(5(5(~ NOTE4-INTERFUNDRECEIVABLE,PAYABLES Receivable Interfund GeneralFund SpecialRevenueFunds- UtilityFund GarbageFund $ Totals $ 1,634 1, $ Intefund Payable $ 3,

19 NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) Depreciationofalexhaustiblefixedasetsusedbyproprietaryfundsischargedasanexpense againstheiroperations.depreciationhasbenprovidedoverthestimatedusefulivesusing thestraight-linemethod.thestimatedusefulivesareasfolows: WaterUtility- Wels LinesandTanks20-50years 10years SewerageUtility- PumpStations Lines LiftStations 30-50years 10years Alfixedasetsarestatedathistoricalcostorestimatedhistoricalcostifactualhistoricalcostis 15years notavailable.donatedfixedasetsarestatedatheirestimatedfairvalueonthedatedonated. K.MemorandumOnly-TotalColumns L.ComparativeData Comparativetotaldatafortheprioryearhasbenpresentedintheacompanyingfinancial statementsinordertoprovideanunderstandingofchangesinthetown'sfinancialposition andoperations.however,comparative(i.e.,presentationofprioryeartotalsbyfundtype)data hasnotbenpresentedineachofthestatementsincetheirinclusionwouldmakethe statementsundulycomplexandificultoread.certainamountsfor195haveben reclasified/restatedtoconformtothe196presentation. M.StatementofCashFlows ForthepurposesoftheStatementofCashFlows,onlynon-restrictedcashisconsidered cash. (14)

20 (13) NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) E.Investments(continued) Understatelaw,theTownofDubachmayinvestintimecertificatesofdepositwithstatebanks organizedunderlouisianalawandnationalbankshavingtheirprincipaloficesinlouisiana andunitedstatesbonds,treasurynotes,etc. F.BadDebts Uncolectibleamountsdueforadvaloremtaxesarerecognizedasbadebtsthroughthe establishmentofanalowanceacountathetimeinformationbecomesavailablewhichwould indicatetheuncolectibilityoftheparticulareceivable. G.Short-termInterfundReceivables/Payables Duringthecourseofoperations,numeroustransactionsocurbetwenindividualfundsfor godsprovidedorservicesrendered.thesereceivablesandpayablesareclasifiedas"due fromotherfunds"or"duetotherfunds"onthebalanceshet. H.PrepaidInsurance Paymentsmadetoinsurancecompaniesforinsurancecoveragethatwilbenefitperiods beyondjune30,196,arerecordedasprepaiditemsintheasetsectionofthebalanceshet. I.RestrictedAsets The"customerdeposit"acountisusedtoreportprocedsfromcustomers'meterdeposits.A corespondingliabilityispresentedtorecordthesefundsheldbythenterprisefund. J.FixedAsets Theacountingandreportingtreatmentapliedtothefixedasetsasociatedwithafundare determinedbyitsmeasurementfocus.fixedasetsusedingovernmentalfundtypeoperations (generalfixedasets)areacountedforinthegeneralfixedasetsacountgroup,andare recordedasexpendituresinthegovernmentalfundtypeswhenpurchased. TheTownhaselectedtocapitalizepublicdomain("infrastructure")fixedasetsconsistingof certainimprovementsotherthanbuildings,includingroads,bridges,sidewalks,andrainage improvements.nodepreciationhasbenprovidedongeneralfixedasets.

21 NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) Themodifiedacrualbasisofacountingisusedbyalgovernmentalfundtypes,trustfunds. Underthemodifiedacrualbasisofacounting,revenuesarerecognizedwhensusceptibleto acrual(i.e.,whentheybecomebothmeasurableandavailable)."measurable"meansthe amountofthetransactioncanbedeterminedand"available"meanscolectiblewithinthe curentperiodorsonenoughthereaftertobeusedtopayliabilitiesofthecurentperiod.the Townconsidersalgovernmentalrevenuesasavailableiftheyarecolectedwithin60days afteryearend.expendituresarerecordedwhentherelatedfundliabilityisincured.purchase ofvariousoperatingsupliesareregardedasexpendituresathetimepurchased. Thoserevenuesusceptibletoacrualarespecialasesments,chargesforservices,and taxes(.'olectedlocaly.louisianacomunitydevelopmentblockgrantreimbursements aproved,butnotyetreleasedbythestatearerecognizedasrevenue.fines,ocupational licenses,andfranchisefesarenotsusceptibletoacrualbecausegeneralytheyarenot recognizedasrevenuewhenthexpenditureismade. measurableuntilreceivedincash.grantsrequiringexpenditurefordeterminingeligibilityare Theacrualbasisofacountingisutilizedbyproprietaryfundtypes.Underthismethod, revenuesarerecordedwhenearnedandexpensesarerecordedathetimeliabilitiesare incured. TheTownofDubachreportsdeferedrevenueonitscombinedbalanceshet.Defered revenuesarisewhenapotentialrevenuedoesnotmetboththe"measurable"and"available" criteriaforecognitioninthecurentperiod.insubsequentperiods,whenbothrevenue recognitioncriteriaremet,theliabilityfordeferedrevenueisremovedfromthecombined balanceshetandrevenueisrecognized. D.BudgetaryPractices TheTownofDubachpreparedanoperatingbudgetonitsgovernmentalandfiduciaryfund typesfortheyearendedjune30,196,asrequiredbygeneralyaceptedacounting principlesasaplicabletogovernmentalunits,andasrequiredbylouisianalaw. Priortoyear-end,theBoardofAldermanadoptedanamendedbudgetaprovingaditional expendituresandrevenue.theamendedbudgetispresentedinthecombinedstatementsof Revenues,ExpendituresandChangesinFundBalance-BudgetandActualandthe combiningandindividualfundstatementsasapropriate, E.Investments Investmentsarestatedatcostoramortizedcost.Discountsandpremiumsonthepurchaseof investmentsareamortizedoverthelifeoftheinvestmentremainingfromthedateofpurchase tothedateofmaturity. (12)

22 NOTESTOFINANCIALSTATEMENTS(continued) TOWNOFDUBACH,LOUISIANA JUNE NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) CapitalProjectsFunds Capitalprojectsfundsareusedtoacountforfinancialresourcestobe usedfortheacquisitionorconstructionofmajorcapitalfacilities (otherthanthosefinancedbyproprietaryfunds,specialasesment ProprietaryFundsfunds,andtrustfunds). EnterpriseFunds Enterprisefundsareusedtoacountforoperations(a)thatare financedandoperatedinamanersimilartoprivatebusines enterprises-wheretheintentofthegoverningbodyisthathecosts (expenses,includingdepreciation)ofprovidingwaterandsewerservicesto thegeneralpubliconacontinuingbasisbefinancedorecoveredprimarily throughusercharges;or(b)wherethegoverningbodyhasdecidedthe periodicdeterminationofrevenuesearned,expensesincured,and/ornet incomeisapropriateforcapitalmaintenance,publicpolicy, managementcontrol,acountability,orotherpurposes. FiduciaryFunds TrustandAgencyFunds TrustandagencyfundsareusedtoacountforasetsheldbytheTownin atrustecapacityorasanagentforindividuals,privateorganizations,other governments,and/orotherfunds.agencyfundsarecustodialinature (asetsequaliabilities)andonotinvolvemeasurementofresultsof operations. C.BasisofAcounting Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyits measurementfocus.algovernmentalfundsandtrustfundsareacountedforusingacurent financialresourcesmeasurementfocus.withthismeasurementfocus,onlycurentasetsand curentliabilitiesgeneralyareincludedonthebalanceshet.operatingstatementsofthese fundspresentincreases(i.e.,revenuesandotherfinancingsources)andecreases(i.e., expendituresandotherfinancinguses)inetcurentasets. Alproprietaryfundsareacountedforonaflowofeconomicresourcesmeasurementfocus. Withthismeasurementfocus,alasetsandaliabilitiesasociatedwiththeoperationofthese fundsareincludedonthebalanceshet.fundequity(i.e.,netotalasets)isegregatedinto contributedcapitalandretainedearningscomponents.proprietaryfund-typeoperating statementspresentincreases(e.g.,expenses)inetotalasets.

23 NOTESTOFINANCIALSTATEMENTS TOWNOFDUBACH,LOUISIANA JUNE NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES TheTownofDubachwasincorporatedundertheLawrasonActin1898.TheTownoperates underamayor-boardofaldermenformofgovernment.thetownislocatedinlincoln Parish.Louisiana. TheacountingandreportingpoliciesoftheTownofDubachconformtogeneralyacepted acountingprinciplesasapliedtogovernmentalunits.theacountingandreporting proceduresconformtotherequirementsoflouisianarevisedstatutes24:517andtothe guidesetforthinthelouisianamunicipalauditandacountingguideandtotheindustry auditguide,auditsofstateandlocalgovernmentalunits,publishedbytheamericaninstitute ofcertifiedpublicacountants. A.ReportingEntity TherewerenocomponentunitsoftheTownofDubachthatwerenotincludedinthefinancial reportingentitybasedonfinancialacountabilitytoreportinconformitywithgeneraly aceptedacountingprinciplesfortheyearendedjune30,196 B.FundAcounting TheacountsoftheTownofDubachareorganizedonthebasisofundsandacountgroups, eachofwhichisconsideredaseparateacountingentity.theoperationsofeachfundare acountedforwithaseparatesetofself-balancingacountsthatcompriseitsasets, liabilities,fundequity,revenues,andexpenditures,orexpenses,asapropriate. Governmentalresourcesarealocatedtoandacountedforinindividualfundsbaseduponthe purposesforwhichtheyaretobespentandthemeansbywhichspendingactivitiesare controled.thevariousfundsaregrouped,inthefinancialstatementsinthisreport,intothre broadfundcategoriesandfivegenericfundtypesasfolows: GovernmentalFunds- TheGeneralFundisthegeneraloperatingfundoftheTown.Itis usedtoacountforalfinancialresourcesexcepthoserequiredtc beacountedforinanotherfund. SpecialRevenueFunds Specialrevenuefundsareusedtoacountfortheprocedsof specificrevenuesources(otherthanspecialasesments,expendable trusts,ormajorcapitalprojects)thatarelegalyrestrictedto expendituresforspecificpurposes. (1o)

24 TOWNOFDUBACH,LOUISIANA ENTERPRISEFUND-.UTIUTYFUND COMPARATIVESTATEMENTSOFCASHFLOWS- PROPRIETARYFUNDTYPE FORTHEYEARSENDEDJUNE30.196AND195 CASHFLOWSFROMOPERATINGACTIVITIES: CashReceivedfromCustomersandUsers $ CashPaymentsforGodsandServices CashPaymentstoEmployes NetCashProvided(Used)byOperatingActivities CASHI-LOWSFROMINVESTINGACTIVITIES: PurchaseofInvestments PurchaseofRestrictedAsets ProcedsfromSaleofInvestments ProcedsfromSaleofRestrictedInvestments InterestfromInvestments PurchaseofPlantEquipment ConstructionofAsets NetCashProvided(Used)byInvestingActivities CASHFLOWSFROMNONCAPITALFINANCINGACTIVITIES: OperatingTransfersfrom(to)OtherFunds NetCashProvided(Used)byNoncapitalFinancingActivities CASHI-LOWSFROMCAPITALFINANCINGACTIVITIES: GrantforConstructionReceived NetCashProvidedbyFinancingActivities NETINCREASE(DECREASE)INCASH CASHATBEGININGOFYEAR CASHATENDOFYEAR $ RECONCILIATIONOFOP[-RATINGINCOMETONETCASH PROVIDEDBYOPERATINGACTIVITIES: OperatingIncome(Los) AdjustmentstoReconcileOperatingIncome(Los)to NetCashProvidedbyOperatingActivities- Depreciation ChangesinAsetsandLiabilitiesWhich RequiredorProvidedCash: (Increase)Decrease:inAcountsReceivable (Increase)Decrease:inPrepaidInsurance Increase(Decrease)inAcruedLiabilities Increase(Decrease)inAcountsPayable Increase(Decrease)inSalesTaxPayable IncreaseinCustomers'MeterDeposits TotalAdjustments NetCashProvided(Used)byOperatingActivities ,787$85,216 (84,897) _.~42,7_9=_5) _~27,905) (29,284) (20,870) 81,921 21,320 1,892 (582) ~591,845~ ~527,4~ (2~9~ 2~,91) 536, (27,626) (42,_68~ (81,921) (1,814) 85,830 4,630 (14,364) ~(14,506) (2,145) (6,26) L6,26) (41,617)1,489 4-_9_,_17047,681 7,53$49,170 $(68,682)$(42,149) 54,94342,648 (3,915)(7) 37 (10,38) ,7 $(27~o5)$ Theacompanyingnotesareanintegralpartofthesefinancialstatements (9) 575(2) (318) 12,839 (1) 1,

25 TOWNOFDUBACH,LOUISIANA ENTERPRISEFUND UTILITYFUND COMPARATIVESTATEMENTSOFREVENUES,EXPENSES,AND CHANGESINRETAINEDEARNINGS-PROPRIETARYFUNDTYPE FORTHEYEARSENDEDJUNE30.196AND195 OPERATINGREVI-NUES: WaterSales SewerSales Delinquentcharges Miscelaneous TOTALOPERATINGREVENUES OPERATINGEXPFNSES: AcountingandAuditFes AdministrativeFes Depreciation Insurance Miscelaneous OperationsandMaintenanceofSystem OficeSuplies,Postage,andPrinting Salaries-Ofice Salaries-Other Salaries-Superintendent SewerPondInspectionFes Taxes-Payrol Utilities TOTALOPERATINGEXPENSES OPERATINGINCOME(LOS) NON-OPERAT NGREVENUES: InterestIncome TOTALNON-OPi-RATINGREVENUES NCOME(LOS)BEFOREOPERATINGTRANSFERS TRANSFERSFROM(TO}OTHERFUNDS GeneralFund TOTALTRANSFERS NETINCOME(LOS) RETAINEDEARNINGS(DEFICIT)-BEGINING RETAINEDEARNINGS(DEFICIT)-ENDING $74,648$ 25,592 3,3565O , 0 54,945 4,4053O5 46,785 2,040 13,172 20,019 9, ,274 13, L ,132 19,206 3,06P, ,0 1,0 42,64~ 4, ,26 1,081 12,617 19,894 9,60 1,20 3,26 13, (68,682)(42,14_9) (59,561)(31,58) _(19,954) _(19,954) (7,67) (7,67) (79,515)(39,25) ~!_93,59~(15.,~',.,?; s(2_731j~s(~_3,598! Theacompanyingnotesareanintegralpartofthesefinancialstatements (8)

26 1, (138) o 1_2-4o ooo0 (648) (148) 0o 000 o _(50~ (648)$ 148} $_!_3,6:!_8_ FIDUCIARYFUNDS VARIANCE- BUDGETACTUAL o$ U~UNEAy_OEABLE) FAVORABLE 0 " oo o 5O o(5o)

27 COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES --BUDGE'I"ANDACTUAL-ALGOVERNMENTALANDFIDUCIARYFUNDTYPES TOWNOFDUBACH,LOUISIANA FORTHEYEARENDEDJUNE GENERALFUND VARIANCE- SPECIALREVENUEFUNDS REVENUES Taxes BUDGETACTUAL(UNFAVORABLE)BUDGET ACTUAL VARIANCE- Interest Ucenses $65,70$ 19,50 Intergovernmental 2,50 73,70$ 20,263 OnBehalfRevenue ChargesforServices 6,219 23,731 8,070$ TOTALREVENUES Fines Mis(,elaneous ,496 1, ,10$ 2,10 2O,859$ (UNFAVORABLE) 4,736 1, ,689 38,850 5,20 42, ,037 2,27(206)0 178, , (183) 43,20 2,00 20,4800 (1,520) 0 EXPE-NDITURES GeneralGovernment FirePolice 70,26 50 HighwaysandStrets 102,580 58, TOTALEXPENDITURES Sanitation CapitalOutlay 29,510 98,510 1,851 4,070 (163) , , , ,9390 (4,54) 4, , , EXCI-S(DEFICIENCY)OF REVENUESOVER(UNDER) OTHERFINANCING EXPENDITURES (83,01)(53,524) 29,487(1,395)4,539 5,934 SOURCES(USES) OperatingTransfersIn TOTALOTHERFINANCING OperatingTransfersOut SaleofGeneralFixedAsets ,024 3,010 0 EXCI-S(DEFICIENCY)OF SOURCES(USES) 5, (1,680) 0 (1,680) , (1,680) _~ RE-VENUESANDOTHER FINANCINGSOURCESOVER (UNDER)EXPENDITURES FUNDBALANCE- ANDOTHERSOURCES (80,01)4,510 84,51(1,395)2,859 4,254 FUNDBALANCE-FNDING$26,9$327~2.82$ BEGINING 347,032,72 (24,28)6, Theacompanyingnotesareanintegralpartofthesefinancialstatements 75,96$ 1,361

28 COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESIN FUNDBALANCES-ALGOVERNMENTALANDFIDUCIARYFUNDTYPES TOWNOFDUBACH,LOUISIANA FORTHEYEARENDEDJUNE30,196 GOVERNMENTALFUNDTYPESFUNDTYPE FIDUCIARY TOTALS REVENUES GENERALREVENUECAPITALTRUST(MEMORANDUMONLY) SPECIAL Taxes FUNDFUNDSPROJECTSFUND Interest 73,70$ Licenses 20,263 20,859$ Intergovemental OnBehalfRevenue 23,731 4,736 ChargesforServices 8, ,01 o$ Fines TOTALREVENUES Miscelaneous 42,232 4, $94,629$79,237 10,0 0 27,730 23,731 23, ,480 EXPENDITURES ,496 4,494 23,15 20,480 7,838 3,120 12, , ,829 5,037 63,702 2,340 26,214 3,179 GeneralGovernment FirePolice 58,375 HighwaysandStrets 63 Sanitation 98,510 TOTALEXPENDITURES CapitalOutlay 26, , , , ,428 41,636 41, ,510 26,571 61,61585 EXCES(DEFICIENCY)OF ,536 17,429 57,561 40,861 8, ,147 38,307 REVENUESOVER(UNDER) OTHERFINANCING EXPENDITURES (53,524)4,639 SOURCES(USES) OperatingTransfersIn OperatingTransfersOut TOTALOTHERFINANCING SaleofGeneralFixedAsets SOURCES(USES) 65,024 (648)(47,76)(20,93) 3,010 0 (1,680)0 0(3,390) ,024 (35,070) 3,010 7,680 58,034(1,680)(3,390) 02,964 1,158 EXCES(DEFICIENCY)OF 8,826 REVENUESANDOTHI-R FINANCINGSOURCESOVER (UNDER)EXPENDITURES FUNDBALANCE-BEGINING32,72 ANDOTHERUSF~S FUNDBALANCE-ENDING$327,28257~96$ 2,859 (31,52) (648) (24,801) 41.67(12,107) 453,74 Theacompanyingnote.,;areanintegralpartofthesefinancialstatements 0513, ,86$41,67 (5)

29 o 0 00,

30 00~0 O 0 0

31 GENERALPURPOSEFINANCIALSTATEMENTS (COIVlBINEDSTATEMENTS-OVERVI-W)

32 (AProfesionalAcountingCorporation) DONM.McGEHE Ruston.Louisiana NorthTrenton P,O,Box134 INDEPENDENTAUDITOR'SREPORT HonorableStephenHamons,Mayor TownofDubach Dubach.Louisiana71235 andboardofalderman Ihaveauditedtheacompanyingeneralpurposefinancialstatementsandthecombiningand acountgroupfinancialstatementsofthetownofdubach,louisiana,asofandfortheyearended June30,196,andtheindividualfundfinancialstatementsoftheTownofDubachasofandforthe yearsendedjune30,196and195,aslistedinthetableofcontents.thesefinancialstatements aretheresponsibilityofthetown'smanagement.myresponsibilityistoexpresanopinionon thesefinancialstatementsbasedonmyaudit. AuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates;andtheprovisionsof OficeofManagementandBudgetCircularA-128,AuditsofStateandLocalGovernments.Those conductedmyauditinacordancewithgeneralyaceptedauditingstandards,andgo_ver.n[nent standardsrequirethatiplanandperformtheauditobtainreasonableasuranceaboutwhether thefinancialstatementsarefreofmaterialmistatement.anauditincludesexamining,onatest basis,evidencesuportingtheamountsandisclosuresinthefinancialstatements.anauditalso includesasesingtheacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralfinancialstatementspresentation.ibelievethatmy auditprovidesareasonablebasisformyopinion. Inmyopinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inal materialrespects,thefinancialpositionofthetownofdubacb,asofjune30,196,andtheresults ofitsoperationsandthecashflowsofitsproprietaryfundfortheyearthenendedinconformity withgeneralyaceptedacountingprinciples.also,inmyopinion,thecombiningandindividual fundandacountgroupfinancialstatementsasofjune30,196,andfortheyearthenendedand theindividualfundfinancialstatementsasofjune30,195,andfortheyearthenendedpresent fairly,inalmaterialrespects,thefinancialpositionofeachoftheindividualfundsandacount groupofthetownofdubach,louisiana,asofjune30,196,andthefinancialpositionofeachof theindividualfundsasofjune30,195,andtheresultsofoperationsofsuchfundsandthecash flowsofitsproprietaryfundfortheyearsthenendedinconformitywithgeneralyacepted acountingprinciples. 8 (318) ~FAX(318)

33 JamesLakeParkFund- ComparativeBalanceShets ComparativeStatementsofRevenues,Expenditures,and EnterpriseFund: ChangesinFundBalance ComparativeBalanceShets (Acomparativestatementofrevenues,expenses,andchangesin retainedearningsandacomparativestatementofcashflowsofthe enterprisefund('anbefoundinthe"overview"sectionofthisreport.) FiduciaryFund: CombiningBalanceShet CombiningStatementofRevenues,Expenditures,and ChangesinFundBalance GeneralFixedAsetAcountGroup: OTHERSUPLEMENTAFiYREPORTS ComparativeSchedulesofGeneralFixedAsets ndependentauditor'sreportoninternalcontrolstructurebased onanauditofgeneralpurposefinancialstatements PerformedinAcordancewithGovernme0].A_uditingStaqd#,rds ndependentauditor'sreportoncompliancebasedonan AuditofGeneralPurposeFinancialStatements PerformedinAcordancewithGovernmentAyḍi'c!ngStandards ndependentauditor'sreportoninternalcontrolstructure UsedinAdministeringFederalFinancialAsistancePrograms ndependentauditor'sreportoncompliancewiththegeneral RequirementsAplicabletoFederalFinancialAsistancePrograms ndependentauditor'sreportoncompliancewithspecific AsistancePrograms RequirementsAplicabletoMajorFederalFinancial ndependentauditor'sreportonscheduleoffederal FinancialAsistance ScheduleofFederalFinancialAsistance 3'!

34 TOWNOFDUBACH,LOUISIANA FINANCIALSTATEMENTS JUNE30,196 NDEPENDENTAUDITOR'SREPORTONTHEFINANCIALSTATEMENTS CONTENTS GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTAT[-MENTS-OVERVIEW) CombinedBalanceShet-AlFundTypesandAcountGroups CombinedStatementofRevenues,Expenditures,andChanges CombinedStatementofRevenues,Expenditures,andChanges InFundBalances,-AlGovernmentalandFiduciaryFundTypes InFundBalances-BudgetandActual- ComparativeStatementsofRevenues,Expenses,andChanges AlGovernmentalandFiduciaryFundTypes ComparativeStatementsofCashFlows-ProprietaryFundType InRetainedEarnings-ProprietaryFundType NotestotheFinancialStatements COMBININGANDINDIVIDUALFUNDANDACOUNTGROUP GeneralFund: FINANCIALSTATEMENTSANDSCHEDULES ComparativeBalanceShets StatementofRevenues,Expenditures,andChangesinFund SuportingScheduleofExpendituresComparedtoBudget Balance-BudgetandActual SpecialRevenueFunds: CornparativeBalanceShets StatementofRevenues,Expenditures,andChangesinFund Balance-BudgetandActual CapitalProjectsFund: CombiningBalanceShet CombiningStatementofRevenues,Expenditures,and CapitalOutlayFund- ChangesinFundBalance ComparativeBalanceShets ComparativeStatementsofRevenues,Expenditures,and ChangesinFundBalance

35 FILEC OFI(. DO.NOTS~,',. colbyaod["lt' f~ckh~f;' TOWNOFDUBAGH, FINANCIALSTATEMENTS LOUISIANA JUNE30,196 Jnaerprovisionsofsterelaw,thvS reporlisapublicdocument.a copyofthereportha~be~submittedtotheaudited,oreviewed, entityandotr,erapropriatepublic oficials.therepodisavaileb~efor publicinspectionathebaton torand,whe:eapropri~,te,athe oficeoftheparishclerkofcourt RougeoificeoftheLesisiat;veAudi- Pplo.aseDate

36 (45) INTEFINALCONTROLREPORT PAGETWO InotedcertainmatersinvolvingtheinternalcontrolstructureanditsoperationthatI considertobereportableconditionsunderstandardsestablishedbytheamericaninstituteof CertifiedPublicAcountants.Reportableconditionsinvolvematerscomingtomyatention relatingtosignificantdeficienciesinthedesignoroperationoftheinternalcontrolstructurethat, inmyjudgment,couldadverselyafecthentity'sabilitytorecord,proces,sumarize, andreportfinancialdataconsistentwiththeasertionsofmanagementinthegeneralpurpose financialstatements. TheTownofDubachastofewpersonelinvolvedinacountingsystemtohaveadequate separationofdutiesforinternalcontrol. Amaterialweaknesisareportableconditioninwhichdesignoroperationofoneormoreof internalcontrolstructurelementsdoesnotreducetoarelativelylowlevelriskthaterors oriregularitiesinamountsthatwouldbematerialinrelationtogeneralpurposefinancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployes inthenormalcourseofperformingtheirasignedfunctions. Myconsiderationoftheinternalcontrolstructurewouldnotnecesarilydisclosealmatersin theinternalcontrolstructurethatmightbereportableconditionsand,acordingly,wouldnot necesarilydisclosealreportableconditionsthatarealsoconsideredtobematerialweaknes asdefinedabove.however,inotedthereportableconditiondescribedaboveinvolvingthe internalcontrolstruotureanditsoperationtobeamaterialweaknesasdefinedabove.these conditionswereconsideredindeterminingthenature,timing,andextentoftheproceduresin myauditofthefinancialstatementsofthetownofdubach,louisiana,fortheyearendedjune ThisreportisintendedfortheinformationofmanagementoftheTownofDubach,theLouisiana DivisionofAdministration,andtheLegislativeAuditor.However,thisreportisamaterofpublic recordanditsdistributionisnotlimited. October8.196

37 (AProfesionalAcountingCorporation) DONM.McGEHE Ruston,Louisiana NorthTrenton P.O.Box134 NDEPENDENTAUDITOR'SREPORTONINTERNALCONTROL STRUCTUREBASEDONANAUDITOFGENERALPURPOSE FINANCIALSTATEMENTSPERFORMEDINACORDANCE WITHGOVERNMENTAUDITINGSTANDARDS TownofDubach HonorableStephenHamons,Mayor Dubach.Louisiana71235 andboardofalderman IhaveauditedthegeneralpurposefinancialstatementsoftheTownofDubach,Louisiana,asof andfortheyearendedjune30,196,andhaveisuedmyreporthereondatedoctober8, 196. GovernmentAuditingStand_ards,isuedbytheComptrolerGeneralofTheUnitedStates.Those standardsrequirethatiplanandperformtheauditobtainreasonableasuranceabout conductedmyauditinacordancewithgeneralyaceptedauditingstandards,and whetherthegeneralpurposefinancialstatementsarefreofmaterialmistatement. ThemanagementoftheTownofDubach,Louisiana,isresponsibleforestablishingand maintaininganinterlalcontrolstructure.infulfilingthisresponsibility,estimatesandjudgments bymanagementarerequiredtoasesthexpectedbenefitsandrelatedcostsofinternal controlstructurepoliciesandprocedures.theobjectivesofaninternalcontrolstructureareto providemanagementwithreasonable,butnotabsolute,asurancethatasetsaresafeguarded againstlosfromunauthorizeduseordisposition,andthatransactionsarexecutedin acordancewithmanagement'sauthorizationandrecordedproperlytopermithepreparation ofgeneralpurposefinancialstatementsinacordancewithgeneralyaceptedacounting principles.becauseofinherentlimitationsinanyinternalcontrolstructure,erorsor iregularitiesmayneverthelesocurandnotbedetected.also,projectionofanyevaluati~,e~,~ thestructuretofutureperiodsisubjectotheriskthatproceduresmaybecomeinadequate becauseofchangesinconditionsorthathefectivenesofthedesignandoperationof policiesandproceduresmaydeteriorate. Inplar~ningandperformingmyauditofthegeneralpurposefinancialstatementsoftheTownof Dubach,Louisiana,forthe;yearendedJune30,196,Iobtainedanunderstandingofthe internalcontrolstructure.withrespectotheinternalcontrolstructure,iobtainedan understandingofthedesignofrelevantpoliciesandproceduresandwhethertheyhaveben placedinoperation,andiasesedcontrolriskinordertodeterminemyauditingprocedures forthepurposeofexpresingmyopiniononthegeneralpurposefinancialstatementsandnoto provideanopinionontheinternalcontrolstructure.acordingly,idonotexpresuchan opinion. (318)25-954~FAX(318)

38

39 (42) COMPARATIVESCHEDULESOFGENERALFIXEDASETS TOWNOFDUBACH,LOUISIANA JUNE30.196AND195 GENERALFIXEDASETS 195 LandandBuildings Equipment TOTALGENERALFIXEDASETS ImprovementsOtherThanBuildings $141,453$138,23 170,968129,342 $313,202$268, NVESTMENTINGENERALFIXEDASETS PropertyAcquiredPriorto PropertyAcquiredAfter7-1-63from- GeneralObligationBonds $ 10,815$10,815 GeneralFund FederalRevenueSharing 51,867 16,231 LawEnforcement 32,75 51,867 85,75 GarbageFund Donations 4,574 19,504 StateGrants 29,0 37,0 3, ,0 30, TOTALINVESTMENTSINGENERALFIXEDASETS$313,202$268,346

40 lheacompanyingnotesareanintegralpartofthesefinancialstatements (4o) TOWNOFDUBACH,LOUISIANA COMBININGSTATEMENTOFREVENUES,EXPENDITURES HAMILTONMEMORIALCEMETERYTRUSTFUNDS FIDUCIARYFUND FORTHEYEARENDEDJUNE30,196 ANDCHANGESINFUNDBALANCE FORTHEYEARENDEDJUNE30,195 WITHCOMPARATIVETOTALS EXPENDABLEEXPENDABLE REVENUES TRUST NON FUND TRUST FUND 196TOTALS TOTALREVENUES Contributions InterestonInvestment $ O EXPENDITURES TOTALEXPENDITURES SupliesandMaintenance 0 1, ~1, EXCES(DEFIClENC~OFREVENUES OVEREXPENDI~URES 730 (1,378)(648) 465 OTHERSOURCES(USES) EXCES(DEFICIENCY)OFREVENUES OperatingTransfersln(Out),730~ ANDOTHERSOURCESOVER(UNDER) FUNDBALANCE-BEGININGOFYEAR EXPENDITURESANDOTHERSOURCES 12,896 0 FUNDBALANCE-ENDOFYEAR $J28~96$ (648) 72$13.618$ (648) ,26

41 Theacompanyingnotesareanintegralpartofthesefinancialstatements (39) HAMILTONMEMORIALCEMETERYTRUSTFUNDS TOWNOFDUBACH,LOUISIANA FIDUCIARYFUND WITHCOMPARATIVETOTALSASOF COMBININGBALANCESHET JUNE30,196 JUNE EXPENDABLEEXPENDABLE TRUST NON ASETS FUND TRUST FUND 196 TOTALS 195 CashinBank TOTALASETS Investments 12, $ , $1,41 $ 12~896$ 781$13,67$14,37 LIABILITIESANDFUNDBALANCE LIABILITIES: TOTALIABILITIES AcountsPayable $ 0$ 59$ 59$ 71 FUNDBALANCE: ReservedforPerpetualCare TOTALFUNDBALANCE UnreservedandUndesignated 12, , ,896 12, ,61814, TOTALIABILITIES ANDFUNDBALANCE $ 1%896$ 781$13.67$14.37

42 Trustandagencyfundsareusedtoacountforasetsheldbythe FIDUCIARYFUNDS Towninatrustecapacityorasanagentforindividuals,private organizations,othergovernments,and/orotherfunds.agency fundsarecustodialinature(asetsequaliabilities)andonot involvemeasurementofresultsofoperations. NON-EXPENDABLETRUSTFUNDS- HamiltonMemorialCemeteryTrustFund-Toacountformonies contributedbyprivatedonorsforinvestmentsuchthathearnings canprovideforthemaintenanceandcareofthehamiltonmemorial Cemetery.Theprincipalamountsofthesegiftsaretoremainintact. EXPENDABLETRUSTFUNDS HamiltonMemorialCemeteryTrustFund-Toacountforeceipt anddisbursementofmoniesfromtheinvestmentearningsfromthe non-expendabletrustfundescribedabove,expendable., contributions,andsalesofcemeterylots.

43 TOWNOFDUBACH,LOUISIANA ENTERPRISEFUND UTILITYFUND COMPARATIVEBALANCESHETS JUNE30.196AND195 ASETS CURENTASETS: Cash Investments-CertificatesofDeposit AcountsReceivable AcruedInterest PrepaidInsurance TOTALCURENTASETS RESTRICTEDASETS: La.ComunityDevelopmentBlockGrantCash Customers'DepositAcount-Cash Customers'DepositAcount-CertificateofDeposit TOTALRESTRICTEDASETS PLANTANDEQUIPMENT: PlantandEquipmentatCost,NetofAcumulated Depreciationof$713,231and$658,286,Respectively TOTALPLANTANDEQUIPMENT TOTALASETS LIABILITIESANDFUNDFQUITY LIABILITIES: CURENTLIABILITIES AcruedPayrol&OtherExpenses AcountsPayable SalesTaxPayable DuetoOtherGovernmentalUnits DuetoGarbageFund DuetoGeneralFund TOTALCURENTLIABILITIES CURENTLIABILITIES(PayablefromRestrictedAsets) Customers'MeterDeposits TOTALCURENTLIABILITIES(fromRestrictedAsets) TOTALIABILITIES FUNDEQUITY: CONTRIBUTEDCAPITAL Municipality FederalGrant FederalGrant-ComunityDevelopmentBlockGrant StateGrant TOTALCONTRIBUTEDCAPITAL RETAINEDEARNINGS(DEFICIT)-UNRESERVE!D TOTALFUNDEQUITY ,53$ 132,696 14,69 1,5858O ,017 15, ,162,32 1,162,32 49, ,3 10, , ,817 9, , $_13~39,806$896, $ 3, , ,0 184, , ,736 1,585, , ,75 2, ,R i ,0 184,146 7, ,736 1,048,525 (193,5_98) TOTALIABILITIESANDFUNDEQUITY $1,39.806$896,381 Theacompanyingnotesareanintegralpartofthesefinancialstatements (37)

44 ENTERPRISEFUND Enterprisefundsareusedtoacountforoperations(a)thatare financedandoperatedinamanersimilartoprivatebusines enterprises-wheretheintentofthegoverningbodyisthathe costs(expenses,includingdepreciation)ofprovidingodsor servicestothegeneralpubliconacontinuingbasisbefinancedor recoveredprimarilythroughusercharges;or(b)wherethegoverning bodyhasdecidedtheperiodicdeterminationofrevenuesearned, expensesincured,and/ornetincomeisapropriateforcapital maintenance,publicpolicy,managementcontrol,acountability,or otherpurposes. UTILITYFUND- Toacountfortheprovisionofwaterandsewerservicestoresidents ofthetown.alactivitiesnecesarytoprovidesuchservicesare acountedforinthisfund,including,butnotlimitedto,administration operations,maintenance,financingandrelatedebtservice,and bilingandcolection.

45 COMPARITIVESTATEMENTSOFREVENUES,EXPENDITURES CAPITALPROJECTSFUND-JAMESLAKEPARK TOWNOFDUBACH,LOUISIANA FORTHEYEARENDEDJUNE30,196AND195 ANDCHANGESINFUNDBALANCE REVENUES TOTALREVENUES InterestIncome RuralDevelopmentGrant $ J2~g~ EXPENDITURES $ o TOTALEXPENDITURES CapitalOutlay 10, EXCES(DEFICIENCY)OFREVENUES FUNDBALANCE-B[-GINING OVER(UNDER)EXPENDITURES (68] FUNDBALANCE.-ENDING $ Theacompanyingnotesareanintegralpartofthesefinancialstatements (35)