TOWNOFOAKGROVE,LOUISIANA

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2 TOWNOFOAKGROVE,LOUISIANA TableofContents June30,202 IndependentAuditor'sReport Exhibit Page GeneralPurposeFinancialStatements: 2 CombinedBalanceShet-AlFundTypesandAcountGroups 3-4 GovernmentalFunds: CombinedStatementofRevenues,Expenditures,andChangesinFundBalances CombinedStatementofRevenues,Expenditures, 5-6 andchangesinfundbalances- ProprietaryFunds: Budget(GAPBasis)andActual 7-8 StatementofRevenues,Expenses,andChangesinFundEquity D 9 NotestotheCombinedFinancialStatements StatementofCashFlows E F 10 SuplementalInformationSchedules: Schedule Page 1-24 SpecialRevenueFunds: CombinedBalanceShet CombiningStatementofRevenues,Expenditures, andchangesinfundbalances CapitalProjectsFunds CombiningStatementofRevenues,Expenditures, ScheduleofCompensationPaidMayorandBoardMembers andchangesinfundbalances ReportonComplianceandonInternalControlOverFinancialReporting WithGovernmentAuditingStandards BasedOnAnAuditofFinancialStatementsPerformedinAcordance 32 ScheduleofFindingsandQuestionedCosts 3

3 DARLAS.TURNER,CPA 301Armand,SuiteC,Monroe,La AProfeslonalAcountingCorporation (318) CertifiedPublicAcountants AmericanInstituteof CertifiedPublicA~ountants SocietyofLoulsiana IndependentAuditor'sReport TotheMayorandCouncilMemberw TownofOakGrove IhaveauditedtheacompanyingeneralpurposefinancialstatementsoftheTownofOakGrove, LouisianasofandfortheyearendedJune30,202,aslistedinthetableofcontents.Thesegeneral Myrespon~oilityistoexpresanopiniononthesegeneralpurposefinanal~atementsbasedonmy audit IconductedmyauditinacordancewithauditingstandardsgeneralyaceptedintheUnitedStatesof AmericandthestandardsaplicabletofinancialauditscontainedinGovernmentAuditingStandards, isuedbythecomptrolerganeraloftheuditedstates.thosestandardsrequirethatiplanandperform theauditobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatomentsarefreof nmterlalmistatement.anauditincludesexamining,onatestbasis,evidencesuportingtheamounts andisclosuresinthegeneralpurposefinancialstatements.anauditalsoincludesasesingthe acountingprinciplesusedandsignificantestimatesmadebymanagement,aswelasevaluatingthe overadgeneralpurposefinancialstatementpresentation.ibelievethatmyauditprovidesareasonable basisformyopinion. Inmyopinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inalmaterial respects,thefinancialpositionofthetownofoakgrove,louisiana,asofjune30,202,andtheresults ofitsoperationsandthecashflowsofitsproprietaryfundtypesandnonexpendabletrustfundsforthe yearthenendedinconformitywithacountingprinciplesgeneralyaceptedintheunitedstatesof America. InacordancewithGovernmentAuditingStandards,IhavealsoisuedmyreportdatedNovember15, 202,onmyconsiderationoftheTownofOakGrove,Louisiaua'sinternalcontroloverfinancial reportingandmytestsofitscompliancewithcertainprovisionsoflaws,regulations,contractsandgrants. ThisreportisanintegralpartofanauditperformedinacordancewithGovernmentAuditingStandards andshouldbereadinconjunctionwiththisreportinconsideringtheresultsofmyaudit. DARLAS.TURNER CERTIFIEDPUBLICACOUNTANT Monroe,Louisiana November15,202

4 TOWNOFOAKGROVE,LOUISIANA CombinedBalanceShet-AlFundTypesandAcountGroups June30,202 GOVERNMENTALFUNDTYPES ASETSANDOTHERDEBITS GeneralRevenue Fund Special Funds Service Debt Fund CashandCashEquivalents(Note2) Receivables-(net,whereaplicable,ofalowance foruncolectibles): $293,340$1,467,980$327,607 AdValoremtaxes 18,83 Inventory Acounts 48,13 Restrictedasets(Note2) Notesreceivable(Note9) FixedAsets(Note3) Propertyandequipment(netofacumulatedepreciation) 3,747 OTHERDEBITS Amountavailableindebtservicefund Amountobeprovidedforetirementofgeneralong-termdebt.lABILITIES,FUNDEQUITYANDOTHERCREDITS LIABILITIES TOTALASETSANDOTHERDEBITS$315,970$1,516,093$327,607 Acountspayable Refundablesalestax Payablefromrestdctedasets: $4,058$6,97$ Revenuebond"~ 40,175 Acruedinterestandexpenses Refundabledeposits Generalobligationbondspayable Customers'deposits Revenuebondspayable 2,529 FUNDEQUITYANDOTHERCREDITS Contributedcapital TotalLlabilities 6,587 47,152 Investmentingeneralfixedasets Retainedearnings: FundBalances: Reserved Reservedfordebtservice Unreserved-undesignated(deficit) 327,807 TOTALIABILITIES,FUNDEQUITYANDOTHERCREDITS$315,970$1,516,093.$327,607 TotalEquityandOtherCredits309,3831,468, ,607 Seacompanyingnotestocombinedfinancialstatements. 3

5 ExhibitA PROPRIETARYFIDUCIARY Capital FUNDTYPE FUNDTYPE Trustand General ACOUNTGROUPS Projects Fund Enterprise Fund Agency Fund Asets Fixed Long-Term General Debt (Memorandum Totals $ 4,18$395,987$10,57$ $2,49,659 Only) 42,317 18,83 1,092 42,317 48,13 273, ,569 1,092 3,652,60 1,612,96 5,265,656 3,747 2,365,0 327,607 2,365,0 327,607 $ 4,18$4,375,625$ 10,57$1,612,96$ 2,692,607$10,85,643 $ 2,124$ $ $ $ 40,175 13,159 90,03 24,85 42,103 10,57 90,03 35,42 42,103 2,365,0 2,365,0 2,529 1,042,608 83,463 10,57 2,365,0 3,471,904 83,463 2,912,851 1,612,96 2,912,851 1,612,96 420,16 327, ,16 4,18 3,3,017 1,612,96 327,607 1,782,512 7,383,739 65,214 $ 4,18$4,375,625$ 10,57$1,612,96$ 2,692,607$10,85,643

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12 TOWNOFOAKGROVE,LOUISIANA Exhibit NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES A.Introduction ThefinancialstatementsoftheTownofOakGrove,LouisianarepreparedinacordancewithGeneralyAceptedAcountingPrinciples(GAP).TheTown'sreportingentityapliesalrelevantGovernmentalAcounting StandardsBoard(GASB)pronouncements.ProprietaryfundsaplyFinancialAcountingStandardsBoard (FASB)pronouncementsandAcountingPrinciplesBoard(APB)opinionsisuedonorbefore November30,1989,unlesthosepronouncementsconflictwithorcontradictGASBpronouncements, inwhichcase,gasbprevails.theacountingandreportingproceduresalsoconformtotherequirementsof LouisianaRevisedStatutes24:513,totheguidesetforthintheLouisianaGovernmentalAuditGuide,andto industryauditguide,auditsofstateandlocalgovernmentalunits. TheacountingandreportingframeworkandthemoresignificantacountingprinciplesandpracticesarediscusedinsubsequentsectionsofthisNote.TheremainderoftheNotesareorganizedtoprovidexplanations, includingrequiredisclosures,ofthetown'sfinancialactivitiesforthefiscalyearendedjune30,201. B.FinancialReportingEntity-BasisOfPresentation TheTownofOakGrove,Louisiana,wasincorporatedJanuary4,196,undertheprovisionsofTheHomeRule CharterasprovidedbyStateLawReferenceL.R.S.3: Acopyoftheratifiedcharterisrecordedin CharterBok"B"atpage401,oftherecordsofWestCarolParish,Louisiana.AtJune30,201,the Townhadapopulationof2,262.ThecitizenselectheMayor,whoisthexecutiveoficer,andthefive Asthemunicipalgoverningauthority,foreportingpurposes,theTownofOakGrove,Louisianaisconsidereda Councilmembers.TheCouncilelectstheMayorPro-Tem. separatefinancialentity.thefinancialreportingentityconsistsof(a)theprimarygovernment,(b)organizations forwhichprimarygovernmentisfinancialyacountable,and(c)otherorganizationsforwhichnature andsignificanceoftheirelationshipwiththeprimarygovernmentcouldcausethestatementstobemisleading orincomplete. GovernmentalAcountingStandardsBoard(GASB)StatementNo.14establishedcriteriafordeterminingwhich componentunitshouldbeconsideredpartofthetownofoakgrove,louisianaforthefinancialreporting purposes.thebasicriterionforincludingapotentialcomponentunitwithinthereportingentityisfinancial acountability.thesecritedainclude: 1.Apointingavotingmajorityofanorganization'sgoverningbody. A.Theabilityofthemunicipalitytoimposeitswilonthatorganizationand/or B.Thepotentialfortheorganizationtoprovidespecificfinancialbenef'~torimpose 2.Organizationsforwhichthemunicipalitydoesnotapointavotingmajoritybutare specificfinancialburdensonthemunicipality. fiscalydependentonthemunicipality. (Continued) 1

13 TOWNOFOAKGROVE,LOUISIANA Exhibit1 NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1~SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Cont'd.) 3.Organizationsforwhichthereportingentityfinancialstatementswouldbemisleadingif dataoftheorganizationisnotincludedbecauseofthenatureorsignificanceofthe ~.FundsandAcountGroups relationship. TheTownofOakGroveusesfundsandacountgroupstoreportonitsfinancialpositionandtheresultsofits operations.fundacountingisdesignedtodemonstratelegalcomplianceandtoaidfinancialmanagementby segregatingtransactionsrelatingtocertaingovernmentfunctionsoractivities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Ontheotherhand,anacount groupisafinancialreportingdevicedesignedtoprovideacountabilityforcertainasetsandliabilitiesthat arenotrecordedinthefundsbecausetheydonotindirectlyafectnetexpendablefinancialresources. FundsoftheTownofOakGroveareclasifiedintothrecategories:governmental,propdetary,andfiduciary. Eachcategory,inturn,isdividedintoseparatefundtypes.Thefundclasificationsandadescription ofeachexistingfundtypefolow: GovernmentalFunds GovernmentalfundsacountforalormostoftheTownofOakGrave'sgeneralactivities,includingthecolection andisbursementofspecificorlegalyrestrictedmonies,theacquisitionorconstructionofgeneralfixedasets, andtheservicingofgeneralong-termobligations.governmentalfundsinclude: GeneralFund-thegeneraloperatingfundoftheTownofOakGroveandacountsforalfinancial resources,excepthoserequiredtobeacountedforinotherfunds. SpecialRevenueFunds-acountfortheprocedsofspecificrevenuesourcesthatarelegalyrestdcted toexpendituresforspecifiedpurposes. DebtServiceFunds-acountfortransactionsrelatingtoresourcesretainedandusedforthepaymentof principalandinterestonthoselong-termobligationsrecordedinthegeneralong-termobligations acountgroup. ProprietaryFunds Proprietaryfundsacountforactivitiesimilartothosefoundintheprivatesector,wherethedeterminationof netincomeisnecesaryorusefultosoundfinancialadministration.proprietaryfundsdiferfromgovernmental fundsinthatheirfocusisonincomemeasurement,which,togetherwiththemaintenanceofequity,isan importantfinancialindicator.proprietaryfundsincludenterprisefundsandinternalservicefunds. Propdetaryfundsinclude: Continued) 12

14 TOWNOFOAKGROVE,LOUISIANA ExhibitF NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Cont'd.) EnterpriseFund-acountsforoperations(a)thatarefinancedandoperatedinamanersimilartoa privatebusinesenterprisewheretheintentofthegoverningbodyisthatcosts(expenses,including depreciation)ofprovidingodsorservicestothegeneralpubliconacontinuingbasisbefinancedor recoveredprimarilythroughuserfes;or(b)wherethegoverningbodyhasdecidedthatperiodic determinationofrevenuesearned,expensesincured,and/ornetincomeisaprepdateforcapital maintenance,publicpolicy,managementcontrol,acountability,orotherpurposes. FiduciaryFunds AgencyFunds-acountforasetsheldbytheTownofOakGroveonbehalfofothersasitsagent.Agency fundsarecustodialinature(asetsequaliabilities)andonotinvolvemeasurementofresultsof D.BasisofAcounting operation. Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyitsmeasurementfocus.Al governmentalfundsandexpendabletrustfundsareacountedforusingacurentfinancialresources measurementfocus.withthismeasurementfocus,onlycurentasetsandcurentliabilitiesaregeneraly includedonthebalanceshet.operatingstatementsofthesefundspresentincreasesandecreasesin netcurentasets.themodifiedacrualbasisofacountingisusedbyalgovernmentalfunds,expendable trustfunds,andagencyfunds.themodifiedacrualbasisofacountingrecognizesrevenueswhenboth 'measurableandava{lable."measureb{emeanstheamountcanfoedetermined.avai(ablemeanscolectible withinthecurentperiodorsonenoughthereaftertopaycurentliabilities,also,underthemodifiedacrual basisofacounting,expendituresarerecordedwhentherelatedfundliabilityisincured,exceptforgeneral 3bligationbondprincipalandinterestwhicharereportedasexpendituresintheyeardue. Rev~nu~s PropertytaxesatachasanenforceablelienonpropertyasofJanuary1,TaxesareleviedbytheTownin SeptemberorOctoberandareactualybiledonOctober1,andar edtothetaxpayersinNovember.Biled taxesbecomedelinquentonjanuary1ofthefolowingyear.revenuesfromadvaloremtaxesarebudgetedin theyeartheyarebiled.thetownbilsandcolectsitsownpropertytaxesusingtheasesedvaluedetermined bythetaxasesorofwestcarolparish.theyearendedjune30,202,taxesof17.93milswereviedon propertywithasesedvaluationstotaling$8,303,495,andweredeductedasfolows: Generalcorporatepurposes9.19mils StretMaintenance Cemetery 6.25mils =ropertytaxrevenuesarerecognizedwhentheybecomeavailable.availableincludesthosepropertytax 2.49mils colectibleandthereforenoalowanceforuncoljectibletaxesisprovided. receivableselectedtobecolectedwithinsixtydaysafteryearend.delinquentaxesareconsideredfuly Fines,bondforfeiture,andfesarerecognizedwhencolectedbytheTown.Interestincomeisrecordedwhenit iscreditedtoacountsbythebank. (Continued) 13

15 TOWNOFOAKGROVE,LOUISIANA ExhibitF NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Cont'd.) Expenditures Salariesarerecordedasexpenditureswhenearnedbyemployes. Purchasesofvariousoperatingsuplies,etc.arerecordedasexpenditureswhentherelatedfundliabilityis incured. Principalandinterestongeneralong-termdebtandinstalmentpurchasepaymentsarerecognizedwhendue. DeferedRevenues TheTownofOakGrovereportsdeferedrevenuesonitscombinedbalanceshet.Deferedrevenuesarisewhen resourcesarereceivedbythetownofoakgrovebeforeithasalegalclaimtothem,aswhengrantmoniesare receivedpriortotheincurenceofqualifyingexpenditures.insubsequentperiods,whenthetownofoakgrove hasalegalclaimtotheresources,theliabilityfordeferedrevenueisremovedfromthecombinedbalance shetandtherevenueisrecognized. E.Budgets TheTownofOakGrove(MayorandCouncil)usesthefolowingbudgetpractices: 1.PriortoJune30,theTownClerksubmitstotheMayorandCouncilMembersaproposedoperating budgetforthefiscalyearcomencingthefolowingjuly1.theoperatingbudgetincludesproposed expendituresandthemeansofinancingthemfortheupcomingyear.thebudgetisubmitedin sumaryform.inadition,moredetailedlineitembudgetsareincludedforadministrativecontrol. 2.Publichearingsareconductedtobtaintaxpayercoment. Thelevelofcontrolforthedetailedbudgetsisathedepartmenthead/functionlevel. 3.DuringthemonthofJulythebudgetislegalyenactedthroughpasageofanordinance. 4.Formalbudgetaryintegrationisemployedasamanagementcontroldeviceduringtheyearforthe 5.BudgetsfortheGeneral,CapitalProjects,andSpecialRevenueFundsareadoptedonthecash/expenditures/expensesbasis. GeneralFund,SpecialRevenueFundsandDebtServiceFund. 6.Apropriationslapseathendofeachfiscalyear. BudgetsarealsoadoptedfortheProprietaryFund 7.TheMayorandCouncilMembersmayauthorizesuplementalapropriationsduringtheyear. Continued) 14

16 TOWNOFOAKGROVE,LOUISIANA Exhibit] NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Cont'd.) F.Encumbrances Encumbranceacountingisnotused. G.CashandCashEquivalents Cashincludesamountsindemandeposits,interest-bearingdemandeposits,andmoneymarketacounts. Cashequivalentsincludeamountsintimedepositsandthoseinvestmentswithoriginalmaturitiesof90daysor les.understatelaw,thetownofoakgrovemaydepositfundsindemandeposits,interest-bearingdemand deposits,moneymarketacounts,ortimedepositswithstatebanksorganizedunderlouisianalawandnational bankshavingtheirprincipalo~cesinlouisiana.someofthecashandcashequivalentsarerestricted. Cashdepositsarereportedatcaryingamountwhichreasonablyaproximatesfairvalue. Understatelaw,theTownofOakGrovemayinvestinUnitedStatesbonds,treasurynotes,orcertificates.These areclasifiedasinvestmentsiftheiroriginalmaturitiesexced90days;however,iftheoriginalmaturitiesare90 daysorles,theyareclasifiedascashequivalents.investmentsarestatedatcostandarerestricted. H,FixedAsets Fixedasetsofgovernmentalfundsarerecordedasexpendituresathetimetheyarepurchasedorconstructed, andtherelatedasetsarecapitalized(reported)inthegeneralfixedasetsacountgroup.publicdomainor infrastructures,suchastretoverlays,sidewalksandi~ghtingarenotcapitalized.itisthepolicyofthetown tocapitalizepurchasesover$20.alfixedasetsarevaluedatcost. Fixedasetsusedintheproprietaryfundoperationsareincludedonthebalanceshetofthefundsnetof acumulatedepreciation.depreciationofalexhaustiblefixedasetsusedbypropdetaryfundoperationsis chargedasanexpenseagainstoperations.nodepreciationhasbenprovidedforgeneralfixedasets. Depreciationiscomputedusingthestraight-linemethodandthefolowingusefulives: Plant/SewerColectionSystem MachineryandEquipment 35-50years Long,TermObligations 5-10years Long-termobligationsexpectedtobefinancedfromgovernmentalfundsarereportedinthegeneralong-term ~bligationsacountgroup.expendituresforprincipalandinterestpaymentsforlong-termobligationsare recognizedinthegovernmentalfundswhendue.long-termobligationsexpectedtobefinancedfrom ;~reprietaryfundoperationsareacountedforinthosefunds. J.CompensatedAbsences Townemployesarentitledtothredaysofcompensatedabsences.However,compensatedabsencesdonot ~estoracumulateandarerecordedasexpenditureswhentheyarepaid. Continued) 15

17 TOWNOFOAKGROVE,LOUISIANA Exhibitl NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Cont'd.) K.RestrictedAsets Theseasetsconsistofcashandcashequivalentsrestrictedforbothwaterworksandsewersystem,debt serviceandgeneralfunds. L.FundEquity ContributedCapital ContributedcapitalisrecordedintheEnterpriseFundforcapitalgrantsrestrictedforthe acquisitionorconstructionofcapitalasets.contributedcapitalisnotamortizedbasedonthe depreciationrecognizedonthatportionoftheasetsacquiredorconstructedfromsuch resources. Reserves Reservesrepresenthoseportionsofundequitynotapmpriableforexpendituresorlegaly segregatedforaspecificfutureuse. DesignatedFundBalances Designatedfundbalancesrepresententativeplansforfutureuseofinancialresources. Totalcolumnsonthecombinedstatementsarecaptioned"MemorandumOnly"toindicatethatheyarepresentedonlytofacilitatefinancialanalysis.Datainthesecolumnsdonotpresentfinancialposition,resultsof operations,orchangesinfinancialpositioninconformitywithgeneralyaceptedacountingprinciples.neither isuchdatacomparabletoaconsolidation.interfundeliminationshavenotbenmadeintheagregation ofthisdata. VI.TotalColumnsonCombinedStatements NOTE2-CASHANDCASHEQUIVALENTS Cashincludesamountsindemandeposits,interest-bearingdemandeposits,andmoneymarketacounts. Understatelaw,theTownmaydepositfundsindemandeposits,interest-bearingdemandeposits,money marketacounts,ortimedepositswithstatebanksorganizedunderlouisianalawandnationalbanks,having principaloficesinlouisiana.thetown'sdepositsarecategorizedtogiveanindicationofthelevelofrisk asumedbythetownatfiscalyear-end.thecategoriesaredescribedasfolows: Category1-InsuredorcolateralizedwithsecuritiesheldbytheTownorbyitsagentinthe Category2-Colateralizedwithsecuritiesheldbythepledgingfinancialinstitution'strust Town'sname Category3-Uncolateralized departmentoragentinthetown'sname (Continued) 16

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21 TOWNOFOAKGROVE,LOUISIANA Exhibit NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE5-CHANGESINFIDUCIARYFUNDTYPE sumaryofchangesinfiduciaryfundtypeisasfolows: Cash $6,75 Balance 7/1/01 $56,063$56,638$6,160 AditionsDeletions6/30/02 Balance TheTownistheLesorinanoperatingleasewithTurBanTransportation,Inc,awarehousingcompany.The NOTE6-LEASES leaseisforatermofiveyearscomencingjuly10,201andendingjuly10,206.acordingtotheterms ofthelease,thelesewasrequiredtopaynomonetaryrentaltolesorfortheperiodbegining July1,201throughJanuary10,202.Leseistomaintaininsuranceuponthepremises.Therentaland considerationfortheperiodbeginingjanuary10,202throughjuly10,203,isthesumof$1,0,plus rentof$2,50.thereafter,begining24monthsfromthedateofthislease,andmonthlythereafter,the leasepaymentwilbe$1,0permonthplus10%ofthelese'sgrosearningsupto$2,0oramaximum 10%ofthegrosearningsoftheLeseuptoamaximumof$1,50ofsaidgrosearningsoratotalmaximum totalrentalpermonthof$3,0.theleasecontainsanoptiontoextendtheleaseforthreaditional fiveyearsonthesametermsandconditionsasthisoriginalease.athendofthe2ndfiveyeartermandif aplicable,the3rdfiveyearterm,thelesehastheoptiontoextendtheleaseforanaditionalfiveyearsafter eachsaidperiodonthesametermsandconditionalastheoriginalease.eachoptionmaybexercisedby theleseatanytimeafterthexpirationofthefirsthreyearsofthethencurentermoftheleaseso longastheleseisnotindefaultunderanytermsofthelease.boththelesorandlesehaveagredthat ifathendofthefirst24monthsofthelease,thetotalmonthlypaymentpayableto Lesorisnotequalt~orgreaterthan$2,50amonth,eitherpartymaycanceltheleaseinfulwithin60days ifterthendoftheinitial24monthpedodoftheleaseorwithin60daysofanymonththereafterifthelease )aymentfalsbelow$2,50permonth. Iheleaseremainthesameincludingthechangesresultingfromtheamendment. )noctober8,201theaboveleasewasamended,removingthemaximumrentlimits.optionstorenew TheTownenteredintoasecondoperatingleasewithTurBanTransportion,Inc.April1,202andending March31,207.TheLeseistopaytheTown$1,60permonthor10%ofthegrosearningspermonth, whicheversumisgreater.if10%ofthegrosearningsisgreaterthan$1,0permonth,theleseisto ~aythetownthatsumof10%ofthegrosearnings.theleasealowslesetheoptiontoextendthelease Fortwoaditionalfiveyeartermsandafinaladitionalfouryearandthremonthtermwhichwould :erminateonjuly10,2021.thelesemaythenextendtheleaseforanaditional5yearsonthesame :ermsandconditionsastheoriginalease.aloptionstorenewandextendcancelafterjuly20,2021. ftheleaseisterminatedbyeitherparty,leseistoprovideinsurancethroughoctober31,204. Continued) 21

22 TOWNOFOAKGROVE,LOUISIANA Exhibit! NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE7-INTERFUNDTRANSACTIONS Duringthecourseofnormaloperations,theTownhasnumeroustransactionsbetwenfundsincluding expendituresandtransfersofresourcesprimarilytoprovideservices.thegovernmentalandproprietarytype fundsfinancialstatementsgeneralyreflectsuchtransactionsastransfers. NOTE8-GRANTREVENUE GrantsreceivedbytheTownwereasfolows: StateofLouisiana-DepartmentoftheTreasury StateofLouisiana-DivisionofAdministration 25,0 StateofLouisiana-HousingFinanaceAgency 17,060 86,89 Total$28,959 Specialprojects: TheStateofLouisiana-DepartmentoftheTreasuryawardedtheTownagrantorenovatetheFiskeTheater noakgroveincoperationwiththechamberofcomerceofoakgrove. TheStateofLouisiana-HousingFinanceAgencyawardedtheTownagrantobeusedforthe rehabilitationofhomesforcitizensofthetownwhoqualifyforsuchaid. NOTE9-NOTESRECEIVABLE Duringapriorfiscalyear,theTownsold10.23acresoflandintheindustrialparktoThamesConstruction,Inc. UnderthetermsoftheLouisianainstalmentNotexecutedbyKileyThames,President,ThamesConstruction,Inc.istopaytheTown36equalmonthlyinstalmentsof$58,beginingNovember1,19,and monthlythereafteruntilpaidinfulthetotalselingpricewas$20,4.85.rentintheamount0f$40paid :luringthefiscalwascreditedtowardthepurchasepdceofthisproperty,makingthetotalfinancedamount amount$20,085. Folowingisdetailedscheduleregardingthesaleofthispropertyandanualpaymentsrequiredtoamortize henotereceivable: 202/03 Ye~.r Total$2,629 Total Continued) 21

23 TOWNOFOAKGROVE,LOUISIANA Exhibiti NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE10~PENSIONCOST MunicipalEmployes'RetirementSystem PlanDescription Substantialyalfurl-timemployesexceptpoliceoftheTownofOakGrovearecoveredunder themunicipalemployes'retirementsystemoflouisiana(planb),acostsharingmultiplemployerdefined benefitplanretirementsystem(pers),controledandadministeredbyaseparateboardoftrustes.thesystem SystemwasestablishedandprovidedforbyR.S.1:1731oftheLouisianaRevisedStatutes(LRS).The Systemprovidesretirementbenefitstoemployesofalincorporatedvilages,townsandcitieswithintheState whichdonothavetheirownretirementsystemandwhichelectobecomemembersofthesystem. TheMunicipalEmployes'RetirementSystemisuesapubliclyavailablefinancialreporthatincludesfinancial statementsandrequiredsuplementaryinformationformunicipalemployes'retirementsystem. Thatreport,datedSeptember12,201fortheyearendedJune30,201,maybeobtainedbywritingto Duplantier,Hrapman,Hogan&Maher,L.P.,CertifiedPublicAcocuntants,1340PoydrasSt.,Suite20, NewOrleans,Louisiana7012,orbycaling(504) FundingPolicy Planmembersarerequiredtocontribute5%oftheiranualcoveredsalaryandtheTownofOakGroveis requiredtocontributeatanactuarialydeterminedrate.thecurentrateforthetownofoakgroveis4.5% oftheanualcoveredpayrol.thecontributionrequirementsofplanmembersandthetownofoakgrove arestablishedandmaybeamendedbythemunicipalemployes'retirementsystemboardoftrustes. TheTown'scontributionstotheMunicipalEmployes'RetirementSystemfortheyearsendingJune30,20, 201and202were$25,616,$25,37and$23,712respectively,equaltotherequiredcontributionsforeach,ear. ~lanmemberswhohavebenanactivecontdbutingmemberforonefulyeararerbecomingeligibletoretire mayelectoenterthedeferedretirementoptionprogram(drop),foruptothreyearsandeferthereceipts ~fbenefits.uponcomencementofparticipationintheplan,membershipinthesystemterminates.during participationintheplan,employercontributionsarepayablebutmembercontributionscease.fortheyear endingjune30,202,therewasoneplanmemberparticipatinginthedroprogram.thetownofoakgrave's contributionsforthatperiodwere4.5%foratotalof$1,186. MunicipalPoliceRetirementSystem PlanDescdption administeredbythemunicipalpoliceemployes'retirementsystem. MembersofthepolicedepartmentoftheTownofOakGroveparticipateinacostshadngmultiple-employerplan, TheMunicipalPoliceEmployes'RetirementSystemprovidesretirementbenefitsformunicipalpoliceoficers. Membershipismandatoryforanyful-timepoliceoficeremployedbyamunicipalityoftheStateofLouisianand engagedinlawenforcement,empoweredtomakearests,providingtheydonothavetopaysocialsecurityand providingtheymethestatutorycriteria. (Continued) 2

24 TOWNOFOAKGROVE,LOUISIANA Exhibit NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE10-PENSIONCOST(Cont'd,) BenefitprovisionsareauthorizedwithinAct189of1973andamendedbyLRS1:21-1:23.The MunicipalPoliceEmployes'RetirementSystemisuesapubliclyavailablefinancialreporthatincludes [inancialstatementsandrequiredbysuplementaryinformationforthemunicipalpoliceemployes'retirementsystem.thatreport,datedseptember19,201fortheyearendedjune30,201,maybeobtainedmaybe ~btainedbywritingtoduplantier,hrapman,hogan&maher,l.p.,certifiedpublicacountants, 1340PoydrasSt.Suite20,NewOdeans,La.7012,orbycaling(504) FundingPolicy Planmembersarerequiredtocontribute7.5%oftheiranualcoveredsalaryandtheTownofOakGroveis requiredtocontributeatanactuarialydeterminedrate.thecurentrateforthetownofoakgroveis9%ofthe TheTown'scontributionstotheretirementsystemfortheyearsendingJune30,20,201and202were anualcoveredpayrol.thecontdbutionrequirementsofplanmembersandthetownofoakgroveare $2,252,$20,293and$2,291,respectively,equaltotherequiredcontributionsforeachyear. establishedandmaybeamendedbythemunicipalpoliceemployes'retirementsystem'sboardoftrustes. NOTE1-PRIORPERIODADJUSTMENT Theadjustmentoretainedearningsisaresultofthefolowing: ofretainedeamings. Dudngthepriorperiodividendsearnedoninvestmentswerenotrecorded.Thisresultedinanunderstatement NOTE12-TOWNCOUNCIL OnNovember1,201,MayorJamesDumaspasedaway.TheLouisianaStateCharterstatesthatinthevent ofavacancyintheoficeofmayorwhenthetermwilexpireinlesthaneightenmonths,themayorprotern shalbecomemayor.therefore,mayorproternroygunter,ibecamemayor. NOTE13-BUDGETS Inaditiontothebudgetspresentedinthefinancialstatements,theTownadoptsbudgets,whicharenotprovidedinthefinancialstatements,fortheproprietaryfund,thedebtservicefund,theUSDAgrantforwaterlines andthelcdbgsewergrant. NOTE14.ENCUMBRANCES Encumbranceacounting,underwhichpurchaseordersarerecordedinordertoreservethatportionofthe aplicableapropriation,isnotemployed.however,outstandingpurchaseordersaretakenintoconsideration beforexpendituresareincuredinordertoasurethataplicableapropriationsarenotexceded. (Continued) 23

25 ITOWNOFOAKGROVE,LOUISIANA ExhibitF NOTESTOTHECOMBINEDFINANCIALSTATEMENTS FortheYearEndedJune30,202 NOTE15-SUBSEQUENTEVENTS LaveleBrownwaselectedMayoroftheTowninageneralelectionheldinApdl,202,andiscurentlyserving inthatposition. NOTE16-COMITMENTSANDCONTINGENCIES Therewerenocomitmentsorcontingenciesfortheperiod. NOTE17-USEOFESTIMATES Theprocesofpreparingfinancialstatementsinconformitywithgeneralyaceptedacountingprinciples requirestheuseofestimatesandasumptionsregardingcertaintypesofasets,liabilities,revenuesand expenses.suchestimatesprimarilyrelatetounsetledtransactionsandeventsasofthedateofthefinancial statements.acordingly,uponsetlement,actualresultsmaydiferfromestimatedamounts. iconcluded) 24

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27 25 TOWNOFOAKGROVE,LOUISIANA SpecialRevenueFunds CombinedBalanceShet June30,202 Sales ~SETSANDOTHERDEBITS Fund Tax StretCemetery Fund Fund Cash Acountsreceivable Duefromotherfunds $583,987$138,47$184,026 Notereceivable 47,018 1,095 TOTALASETS$931,05$139,572$184,026 LIABILITIES,FUNDEQUITYANDOTHERCREDITS Acountspayable Acruedexpenses Duetotherfunds 40,175 1,584 5, Deferedrevenues Refundablesalestax :'UNDEQUITYANDOTHERCREDITS TotalLiabilities 41,759 5, Fundbalances: Unreservedandundesignated 89,246134, ,90 TOTALIABILITIESAND FUNDEQUITY$931,05$139,572$184,026

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34 DARLAS.TURNER,CPA 301Armand,SuiteC,Monroe,La AProfesionalAcountingCorporation AmericanInstituteof Member (318) CertifiedPublicAcountants CertifiedPublicAcountants SocietyofLouisiana REPORTONCOMPLIANCEANDONINTERNALCONTROLOVERFINANCIALSchedule5 REPORTINGBASEDONANAUDITOFINANCIALSTATEMENTSPERFORMED TotheMayorandCouncilMembers INACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TownofOakGrove IhaveauditedthegeneralpurposefinancialstatementsfortheTownofOakGrove,Louisiana,asofandfor theyearendedjune30,202,andhaveisuedmyreporthereondatednovember15,202.iconductedmyauditin acordancewithauditingstandardsgeneralyaceptedintheunitedstatesofamericandthestandardsaplicable tofinancialauditscontainedingovernmentauditingstandards',isuedbythecomptrolergeneraloftheunited States. Con~liance AspartofobtainingreasonableasuranceaboutwhethertheTownofOakGrove,Louisiana'sgeneralpurpose financialstatementsarefreofmaterialmistatement,iperformedtestsofitscompliancewithcertainprovisionsof laws,regulations,contracts,andgrants,noncompliancewithwhichcouldhaveadirectandmaterialefectonthe determinationofinancialstatementamounts.however,providinganopiniononcompliancewiththoseprovisions wasnotanobjectiveofmyaudit,andacordingly,idonotexpresuchanopinion.theresultsofmytests disclosednoinstancesofnuncompliancethatarerequiredtobereportedundergovernmentalauditingstandards. InternalControlOverFinancialReporting Inplaningandperformgmyaudit,IconsideredtheTownofOakGrove,Louisiana'sinternalcontrolover financialreportinginordertodeterminemyauditingproceduresforthepurposeofexpresingmyopiniononthe generalpurposefinancialstatementsandnotoprovideasuranceontheinternalcontroloverfinancialreporting. Myconsiderationoftheinternalcontroloverfinancialreportingwouldnotnecesarilydisclosealmatersinthe internalcontroloverfmancialreportingthatmightbematerialweakneses.amaterialweaknesisaconditionin whichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylow leveltheriskthatmistatementsinamountsthatwouldbematerialinrelationtothegeneralpurposef'ntancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseof performingtheirasignedfunctions.inotednomatersinvolvingtheinternalcontroloverfinancialreportingandits operationthaticonsidertobematerialweakneses. Thisreportisintendedsolelyfortheinformationanduseoftheauditcomite,management,otherswithinthe organization,towncouncil,andfederalawardingagenciesandpas-throughentitiesandisnotintendedtobeand shouldnotbeusedbyanyoneotherthanthesespecifiedparties. DARLAS.TURNER CERIFIEDPUBLICACOUNTANT Monroe,Louisiana November15,202 32

35 TOWNOFOAKGROVE,LOUISIANA Schedule6 ScheduleofFindingsandQuestionedCosts FortheYearEndedJune30,202 June30,202,andhaveisuedmyreporthereondatedNovember15,202.Iconductedmyauditin acordancewithgeneralyaceptedacountingstandardsandthestandardsaplicabletofinancialaudits IhaveauditedthefinancialstatementsoftheTownofOakGrove,Louisiana,asofandfortheyearended containedingovernmentalauditingstandards,isuedbythecomptrolergeneraloftheunitedstates. MyauditofthefinancialstatementsasofJune30,202,resultedinanunqualifiedopinion. a.reportoninternalcontrolandcompliancematerialtothefinancialstatements Section1SumaryofAuditor'sReports Therewereneithermaterialweaknesesnoreportableconditionsnoteduring theauditofthefinancialstatements. b;federalawards Therewerenoinstancesofnoncompliancematsrialtothefinancialstatements. c.dolarthresholdusedtodistinquishbetwentypeaandtypebprograms:none Therewerenomajorprograms. d.ithetownalowriskaudite?yes