ReleaseDate~;~_~- OiAg~?'tAl'10:32

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1 ReleaseDate~;~_~- OiAg~?'tAl'10:32

2 VILAGEOFSIKF.S SIKES,LOUISIANA *TheVilageofSikeswasincorporatedundertheLawrasonActandtheVilageoperatesundertileMayor-Boardof Aldermanformofgovernment.TheVilageprovidesthefolowingsignificantservicestoitsresidentsasprovidedby ilscharter:publicsafety(policeandfire),utilities(waterandsewerservices)andgeneraladministrativefunctions, includingcordinationofrelatedserviceswithparish,stateandfederalgoverningbodies.

3 VilageoJSi~es,Louisiana TableofComents June30,20 Acountant'sCompilationReportOnGeneralPurposeFinancialStatements- PageNo IndependentAcountant'sReportOnAplyingAgred-UponProcedures GeneralPurposeFinancialStatements(CombinedStatementsOverview):- CombinedBalanceShet-AlFundTypesandAcountGroups CombinedStatementofRevenues,Expenditures GovernmentalFundTypes andchangesinfundbalances-ai CombinedStatementofRevenues,Expenses,andChangesinRetainedEarnings-Al CombinedStatementofCashFlows-AlProprietaryFundTypes-EnterpriseFund ProprietaryFundTypes-EnterpriseFunds 8 NotestoFinancialStatements FinancialStatementsofIndividualFundsandAcountGroups: GeneralFund 2021 BalanceShet CapitalProjectsFunds StatementofRevenues,Expenditures,andChangesinFundBalance 223 BalanceShet StatementofRevenuesExpendituresandChangesinFundBalance-Budget(GAPBasis) 24 ProprietaryFundTypes-EnterpriseFunds vsactual CombiningBalanceShet CombiningStatementofRevenues,Expenses,andChanges ManagementLeterComents CombiningStatementofCashFlows nretainedearnings O Graphs

4 JOHNR.VERCHERPC Ccrti~iedPublicAcountant Jena,Louisiana71342 Tel:(318) P.O.Box1608 Fax:(318) TheHonorableKenethWomack,Mayor Sikes.Louisiana andmembersoftheboardofaldermen graphsofthevilageofsikes,louisiana,asofandfortheyearendedjune30,20,aslistedinthetableofcontents, 1havecompiledtilegeneralpurposefinancialstatements,combiningandindividualfunds,acountgroupsand inacordancewithstatementsofstandardsforacountingandreviewservicesisuedbytheamericaninstituteof CertifiedPublicAcountants. ofmanagement.ihavenotauditedoreviewedtheacompanyingfinancialstatementsand,acordingly,donotexpres anopinionoranyotherformofasuranceonthem. Acompilationislimitedtopresentingintheformofinancialstatementsinformationthatistherepresentation report,datedjune1l,201,ontheresultsofouragred-uponprocedures. InacordancewiththeLouisianaGovermnentalAuditGuideandtheprovisionsofstatelaw,1haveisueda Junel1,201 Jena,Louisiana -MEMBER- AMERICANINSTITUTEOFCERTIFIEDPUBLICEACOUN'FB SOCIETYOFLOUISIANACERTIFIEDPUBLICACOUNTANTS

5 JOHNR.VERCHERPC Certified'PublicAcountant Jena,Louisiana71342 Tel:(318) P.O.Box1608 Fax:(318) TheltonorableKenethWomack,Mayor andmembersoftheboardofaldermen Sikes,Louisiana whichwereagredtobythemanagementofthevilageofsikes,louisiana,andthelegislativeauditor,stateof IhaveperformedtheproceduresincludedintheLouisianaGovernmentAuditGuideandenumeratedbelow Louisiana,solelytoasistheusersinevaluatingmanagement'sasertionsaboutheVilageofSikeșl.ouisiana's, compliancewithcertainlawsandregulationsduringtheyearendedjune30,20,includedintheacompanying l.ouisianatestationquestionaire.thisagred-uponproceduresengagementwasperformedinacordancewith standardsestablishedbytheamericaninstituteofcertifiedpublicacountants.consequently,1makeno representationregardinglhesuficiencyoftheproceduresdescribedbeloweitherforthepurposeforwhichthisreport hasbenrequestedorforanyotherpurpose. i'ublicbidlaw 1.Selectalexpendituresmadeduringtheyearformaterialandsupliesexceding$5,0,orpublicworksexceding $50,0,andetermil~ewhethersuchpurchasesweremadeinacorcJanewithLSA-RS38:21-251(thepublicbid law). 1reviewedisbursementransactionsformaterialsandsupliesexceding$5,0andpublicworks exceding$50,0andfoundanexpenditureforthepurchaseofausedfiretruckthroughthelcdbg Programintheamountof$34,20.Ifoundthathefiretruckpurchasewasnotbidout,buthepurchase waspecedandsentothelouisianadivisionofadministrationwhoreviewedtherequestalongwithstate FireMarshal.ThepurchaseofthefiretruckwasaprovedbytheLouisianaDivisionofAdministration. EIMcs 2.ObtainfromanagementalistoftheimediatefamilymembersofeachboardmemberasdefinedbyLSA-RS 42: (thecodeofethics),andalistofoutsidebusinesinterestsofalboardmembersandemployes,aswel astheirimediatefamilies. 3.Obtainfromanagementalistingofalemployespaiduringtheperiodunderexamination ~Managementprovidedmewiththerequiredlistincludingthenotedinformation 4.Determinewhetheranyofthosemployesincludedinthelistingobtainedfromanagementinagred-upon ~Managementprovidedmewiththerequiredlist procedure(3)werealsoincludedonthelistingobtainedfromanagementinagred-uponprocedure(2)asimediate familymembers. Noneofthemployesincludedonthelistofemployesprovidedbymanagement[agred-uponprocedure (3)]apearedonthelistprovidedbymanagementinagred-uponprocedure(2).,AMERICANINSTITUTEOFCERTIFIEDPUBLICACOUNTANTS SOCIETYOFLOUISIANACERnFIEDPUBLICACOUNTANTS MEMBER 2

6 Budgeting 5.Obtainedacopyofthelegalyadoptedbudgetandalamendments 6.Tracethebudgetadoptionandamendmentstotheminutebok ~TileVilagehadnobudget. 7.Comparetherevenuesandexpendituresofthefinalbudgetoactualrevenuesandexpenditurestodetermineif ~TileVilagehadnobudget actualrevenuesorexpendituresexcedbudgetedamountsbymorethan5%. ~TheVilagehadonbudget. AcountingandReporting 8.P,andomlyselect6disbursementsmadeduringtheperiodunderexaminationand (a)tracepaymentstosuportingdocumentationastoproperamountandpaye ~1examinedsuportingdocumentationforeachofthesixselectedisbursementsandfoundthateach paymentwasfortheproperamountandmadetothecorectpaye. (b)determineifpaymentswereproperlycodedtothecorectfundandgeneraledgeracount ~Alofthepayments,exceptone,asdisclosedinmanagementletercoment20-M-3oilpage32,were (c)determinewhetherpaymentsreceivedaprovalfromproperauthorities properlycodedtothecorectfundandgeneraledgeracount. ~Inspectionofdocumentationsuportingeachofthesixselectedisbursementsindicatedaprovalsfromthe Metings mayor. 9.Examinevidenceindicatingthatagendasformetingsrecordedintheminutebokwerepostedoradvertisedas requiredbylsa-rs42:1through42:12(theopenmetingslaw). Debt ~TheVilagemetsonthethirdSaturdayofeachmonthandpublishesitsmetingintheoficialjourna 10.F,xaminebankdepositsfortheperiodunderexaminationandeterminewhetheranysuchdepositsapeartobe procedsofbankloans,bonds,orlikeindebted ~Iinspectedcopiesofalbankdepositentriesintheboksfortheperiodunderexaminationandnotedno depositswhichapearedtobeprocedsofbankloans,bonds,orlikeindebtednes. AdvancesandBonuses whichmayconstitutebonuses,advance,orgifts. 1.Examinepayrolrecordsandminutesfortheyeartodeterminewhetheranypaymentshavebenmadetoemployes ~AreadingoftheminutesoftheVilagefortheyearindicatednoaprovalforthekindofpaymentsnoted.1 alsoinspectedisbursementrecordsfortheyearandnotednoinstancesthatwouldindicatepaymentsto employeswhichwouldconstitutebonuses,advancesorgifts.

7 anopiniouonmanagement'sasertions.acordingly,ididnotexpresuchanopinion.hadiperformedaditional procedures,otherinatersmighthavecometomyatentionthatwouldhavebenreportedtoyou. lwasnotengagedto,andidnot,performanexamination,theobjectiveofwhichwouldbethexpresionof Auditor,StateofLouisiana,andshouldnotbeusedbythosewhohavenotagredtotheproceduresandtaken responsibili yforthesuficiencyoftheproceduresfortheirpurposes.however,thisreportisamaterofpublicrecord 3'MsreportisintendedsolelyfortheuseofmanagementofVilageofSikes,LouisianandtheLegislative anditsdistributionisnotlimited. Jena,Louisiana June1,201

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9 CashReceivables ASETS ACumulatedDepreciation RestrictedAsets: Cash plant&equipment LIABILITIES&FUNDEQUITY TOTALASETS AcountsPayable PayableFromRestrictedAsets Customers'Deposit LongTermPayables: BondsPayable FundEquity ContributedCapital TOTALIABILITIES RetainedEarnings: Unreserved Reserved InvestmentinCon.FixedAsets Unreserved-Undesignated TOTALFUNDEQUITY TOTALIABILITIESAND FUNDEQUITY VILAGEOFSIKES,LOUISIANA ALFUNDTYPESANDACOUNTGROUPS COMBINEDBAL4NCESHET JUNE30,;20 General Fund Governmental FundTypes Projects Capital Proprietary FundTypes Acount Enterprise Fixed Asets Momorandum Total $13,142$-Oo D- $26,2142,812 - Only) $13,235 $-0-21,79 0-~O- 858,450 (24,410) -B- $39, ,790.Oo 21,70 $50,790 $748, ,240 $137-O--0- $137 Ō- $ $6102,742,927 $-o- $-0-64,0 $*0--0-Ō- $747-2, , Oo $-0-.$7ọ;2.8j.$_-o- -O- $754,020$._.$_.A.3_._9.8_ -O- (153,462) 13,97 -O , _.E.Z~.~15 $754,020 (153,462) 13,97 50,790 $._._.:_0.:_$(139465)*.5.9;792_. ~,o~5 $-0-$684,636$50,790 $748,861 "SeAcompanyingNotesandAcountant'sReport" 6

10 COMBINEDSTATEMENTOFREVENUES,EXPENDITURES VILAGEOFMKES,LOUISIANA ANDCltANGESINFUNDBALANCES ALGOVERNMENTALTYPES YEARENDEDJUNE30,20 Genera REVENUES: Fund Projects Capital Funds (Memorandum Taxes-AdValorem OcupationalLicenses TobacoTax $1,024 Totals Only) Rebates Intergovernmental-Grants 4, $ Miscelaneous 1,783 Fines 7, =-0-4, ,024 Donations EXPENDITURES: TOTALREVENUES 14, ,783 i*i~i 7,360$ 91, Salaries&Benefits Suplies OficeExpense $5,939 $ OtherOperatingExpense Insurance $ 5,939 Utilities ProfesionalFes 1, , Rent RefundDonation Advertising 1, GrantExpense Administration 6,058-0o-0--0-= , Enginering Equipment: 14,50-0- TOTALEXPENDITURES 10,740 32,420 14,50 6,058 34,20 10,740 32,420 34,20 EXCES(DEFICIT)OFREVENUES OVEREXPENDITURES FUNDBALANCES,BEGINING _$.(6;92) 20,090 $_ -L0:.$ (.6~_92)_ FUNDBALANCES,ENDING $13,098 $ -0- $?o,9p._. 13,098 "SeAcompanyingNotesandAcountant'sReport" 7

11 COMBINEDSTATEMENTOFREVENUES,EXPENSES VILAGEOFSIKES,LOUISIANA ANDCHANGESINRETAINED"EARNINGS ALPROPRIETARYFUNDTYPES YEARENDEDJUNE30,:20 ENTERPRISEFUNDS OPERATINGREVENUES ChargeForService OtherMiscelaneous TOTALOPERATINGREVENUES OPERATINGEXPENSES Diagnostics ContractLabor Depreciation Repairs/MaintenanceandSuplies Utilities OtherOperatingExpense ~esureoe OPERATINGINCOME(LOS) TOTALEXPENDITURES NON-OPERATINGREVENUE(EXPENSES) InterestIncome InterestExpense NETINCOME(LOS) TOTALNON-OPERATINGREVENUES(EXPENSE) RETAINEDEARNINGS(DEFICIT),BEGINING RETAINEDEARNINGS(DEFICIT),ENDING $25.76 _$.2~,95~ $ 16,983 3, ,76 2, $_ ('~#40_L $ 1,15 $ (!3.?,~,.2.6). (6,939) $(139,465) "SeAcompanyingNotesandAcountant'sReport" 8

12 COMBINEDSTATEMENTOFCASHFLOWS VILAGEOFSIKES,LOUISIANA ALPROPRIETARYFUNDTYPES YEARENDEDJUNE30,20 ENTERPRISEFUND CashfromOperations NetIncome(Los) AdjustmentstoNetIncome(Los): Ad-Depreciation DecreaseInAcruedExpenses Decrease(Increase)InAcountsRece'lvabte Increase(Decrease)InAcountsPayable CashProvidedbyOperations NetAdjustments CashfromCustomerDeposits CashWasApliedTo TotalCashProvided RestrictedFunds RevenueBonds CustomerDeposits TotalCashAplied CashBeginingofYear NetIncrease(Decrease)inCashFlow CashEndofYear $16,983( ~,~46_. $10,20735O $10,57 2,315 2,0421 $5,821 $26,214 ~,3~ "SeAcompanyingNotesandAcountant'sReport"

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14 NOTESTOFINANCIALSTATEMENIS WLI.AGEOFSIKES,LOUISIANA (1) S1JMARVOFSIGNIFICANTACOINTIN~PCIJC'I~ ofaldermanformofgover,unent.thevilageprovidesthefolowingsignificantservicestoitsresidentsasprovided TheVilageofSikeswasincorporatedundertheLawrasonActandtheVilageoperatesundertheMayor-Board byitscharter:publicsafety(policeandfire),highwaysandstrets,utilities(waterandsewerservices)andgeneral administrativefunctions,includingcordinationofrelatedserviceswithparish,stateandfederalgoverningbodies. aplicabletogovernments.thefolowingisasumaryofthemoresignificantacountingpolicies: TheacountingpoliciesoftheVilageofSikesconformtogeneralyaceptedacountingprinciplesas A.ReportingEntity B.FundAcmting isconsideredaseparateacountingentity.thevariousfundsandacountgroupsarereportedbygenericfundtypein TheacountsoftheVilageofSikesareorganizedonthebasisofundsandonacountgroups,eachofwhich thefinancialstatements.eachfundoperateswithagroupofself-balancingacountsthatcompriseitsasets,liabilities, fundequity,revenuesandexpenditures,orexpenses,asapropriate.governmentresourcesarealocatedtoand acountedforintheindividualfundsbaseduponthepurposesforwhichtheyaretobespentandthemeansbywhich spendingactivitiesarecontroled.thefolowingfundcategories,fundtypesandacountgroupsareusedbythe Vilage: GOVERNMENTALFUNDTYPES GeneralFund resourcesexceptforthoserequiredtobeacountedforinanotherfund. TheGeneralFundisthegeneraloperatingfudoftheVilageandisusedtoacountforalfinancia construcfiouofmajorcapitalfacilities(otherthanthosefinancedbyproprietaryfunds,specialasesmentfunds andtrustfunds). CapitalProjectsFundsareusedtoacountforfinancialresourcestobeusedfortheacquisitionor

15 NOTES1"0FINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) (1) B.FndAcounting-(Continued) PROPRIETARYFUNDTYPES EnterpriseFund privatebusinesenterpriseswherebytheintentofthegoverningbodyisthathecosts,includingdepreciation, ofprovidingodsorservicestothegeneralpublicbefinancedorecoveredprimarilythroughusercharges; TileEnterpriseFundsareusedtoacountforoperations(a)thatarefinancedandoperatedsimilarto or(b)wherethegoverningbodyhasdecidedthatperiodicdeterminationofrevenuesearned,expensesincured, and/ornetincomeisapropriateforcapitalmaintenance,publicpolicy,managementcontot,acountabilityor otherpurposes.thevilage'senterprisefundsarecomprisedofitsutilitydepartment'swaterandsewer systems. GeneralFixedAsetsAcountGroup forintheenterprisefund. ThisacountgroupisestablishedtoacountforalfixedasetsoftheVilage,excepthoseacounted C.BASISOFACOUNTING acountsandreportedinthefinancialstatements.basisofacountingrelatestothetimingofthemeasurementmade, regardlesofthemeasurementfocusaplied. Basisofacountingreferstothetimeatwhichrevenuesandexpendituresorexpensesarerecognizedinthe GoverumentalFunds recognizedwhentheybecomemeasurableandavailableasnetcurentasets.advaloremtaxesandcharges forservicesareconsidered"measurable"athetimeofbiling.licensesandper,nits,intergovernmental Thesefundsareacountedforusingthemodifiedacrualbasisofacounting.Theirevenuesare revenue,franchisetaxesandmiscelaneousotherevenuesaregeneralyrecordedasrevenueswhenreceivedin cashbecausetheyaregeneralynotmeasurableuntilactualyreceived. fundliabilityisincured.exceptionstothisgeneralruleinclude:principalandinterestongeneralong-term Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacountingwhentherelated debtwhichisrecognizedwhendue. 12

16 NOTES71"0FINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) (1) C.BASISOFACOUNTING-(Continued) ProprielaryFnd arearned,anditsexpensesarerecognizedwhentheyareincured.enterprisefundreceivablesarechargedofwbencolectionefortsindicatethatsuchacountisdoubtfulofbeingcolected. Thisfundisacountedforusingtheacrualbasisofacounting.Itsrevenuesarerecognizedwhenthey D.FIXEDASETSANDLONG-TERMLIABILITIES fundaredeterminedbyitsmeasurementfocus.algovernmentalfundsareacountedforonaspendingor"financial flow"measurementfocus.thismeansthatonlycurentasetsandcurentliabilitiesaregeneralyincludedontheir "l~eacountingandreportingtreatmentapliedtothefixedasetsandlong-termliabilitiesasociatedwitha balanceshets.theireportedfundbalance(netcurentasets)isconsideredameasureof"availablespendable resources."governmentalfundoperatingstatementspresentincreases(revenuesandotherfinancingsources)and decreases(expendituresandotherfinancinguses)inetcurentasets.acordingly,theyaresaidtopresenta sumaryofsourcesandusesof"availablespendableresources"duringaperiod. FixedAsetsAcountGroup,ratherthaningovernmentalfunds.Publicdomain("infrastructure")generalfixedasets consistingofcertainimprovements,includingroads,bridges,curbsandguters,stretsandsidewalks,drainagesystems Fixedasetsusedingovernmentalfundtypeoperations(generalfixedasets)areacountedforintheGeneral andlightingsystemsarecapitalized.sincenoacountingrecordsaremaintainedoninfrastructure,theseasetsarenot includedinthefinancialstatements. propertyrecordsarenotsuficientlydetailedtoprovidedatawithrespectowhethertheasetsacquiredpriortojune 30,194,arerecordedathistoricalcost,estimatedhistoricalcost,oratestimatedfairvalueondatedonated.General AlfixedasetsoftheProprietaryFundarevaluedathistoricalcost.TileGeneralFixedAsetAcountGroup fixedasetsacquiredsubsequentojune30,194arerecordedathistoricalcost. TermDebtAcountGroup,notinthegovernmentalfunds. Long-termliabilitiesexpectedtobefinancedfromgovernmentalfundsareacountedforintheGeneral,ong Theyarenotinvolvedwithmeasurementofresultsofoperations.Becauseoftheirspendingmeasurementfocus, expenditurerecognitionforgovermnentalfundtypesislimitedtoexcludeamountsrepresentedbynoncurentliabilities. Thetwoacountgroupsarenot"funds".Theyareconcernedonlywiththemeasurementofinancialposition. Sincetheydonotafectnetcurentasets,suchlong-termamountsarenotrecognizedasgovernmentalfundtype expendituresorfundliabilities.theyareinsteadreportedasliabilitiesinthegenerallong-termacountgroup. meansthatalasetsandaliabilities(whethercurentornoncurent)asociatedwithitsactivityisincludedonits balanceshets.itsreportedfundequity(netotalasets)isegregatedintocontributedcapitalandretainedearnings Theproprietaryfundisacountedforonacostofservicesor"capitalmaintenance"measurementfocus.Tifs components.proprietaryfundtypeoperatingstatementspresentincreases(revenues)andecreases(expenses)inet totalasets. 13

17 NOTESTOFINANCIALSTATEMENTS VILAGEOFS1KES,LOUISIANA (Conaued) D.FIXEDASETSANDLONG-TERMLIABILITIES-(Continued) FortheyearendedJune30,20,nointerestcostswerecapitalizedforconstructionofixedasets operations.acumulatedepreciationisreportedontheproprietaryfundbalanceshet.depreciationhasben Depreciationofalexhaustiblefixedasetsusedbytheproprietaryfundischargedasanexpenseagainstits providedoverthestimatedusefulivesusingthestraightlinemethod.thestimatedusefulivesareasfolows: WaterSystem E.BUDGETSANDBUDGETARYACOUNTING SewerSystem LifeInYears F.CASIANDINVESTMENTS TheVilagedidnotprepareabudget insuredbanks: Alcashandinvestments(CD'sover90days)arereportedatcostandareondepositasfolowingfederaly lower,lestheamountofthefederaldepositinsurancecorporationinsurance.thevilage'sdepositsare categorizedtogiveanindicationofthelevelofriskasumedbythevilageatfiscalyear-end.thecategories ItistheVilage'spolicyfordepositstobe10%securedbycolateralatmarketorpar,whicheveris aredescribedasfolows: Category1-InsuredorconateralizedwithsecuritiesheldbytheScholorbyitsagentinthe Vilage'sname. Category2-Colateralizedwithsecuritiesheldbythepledgingfinancialinstitution'strust departmentoragentinthevilage'sname. Category3-Uncolateralized. SabineBank BankofWinfield BankBalance ,913 Amountsondepositathebankaresecuredbythefolowing Description Total ,806 FDIC(Category1) $ MarketValue 61,806 ]4

18 NOTESTOFINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) G.INVENTORIES (i) acordingly,thesesupliesarexpensedaspurchased. hnmaterialamountsofinventoryaremaintainedforgeneralfundandenterprisefundoperationsand 1.ACOUNTSRECEIVABLEANDBADEBTS-GENERALFUNDANDALOWANCEFOR BADEBTS-ENTERPRISEFUND outstandingwereconsideredimaterial. AtJune30,20noreserveforbadebtswasrequiredsincethestimateduncolectiblereceivables Receivable-Franchise General Fund EnterpriseFund TaxCustomer $ $ Water Fund AlowanceforBadDebts Total $ 2, Sewer Fund COMPENSATEDABSENCES J.RESERVES TheVilagehasnocompensatedabsencepolicy restrictedforaspecificfutureuse.thefolowingisalistofsuchreservesandadescriptionofeach: 1eVilagerecordsreservestoindicatethataportionofitsretainedearnings/fundbalancesarelegaly ReservedforSystemMaintenance Thisamountrepresentsmoniesreservedforepairsandreplacementofthewatersystem Reserved-RevenueBonds Thisamountrepresentsmoniesreservedasrequiredbytherevenuebondindentures ReservedforDebtService ofthegovernmentalfunds. CertainasetshavebenreservedintheDebtServiceFundforfuturepaymentoflong-termliabilities 15

19 NOTESTOFINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) K.TOTALCOLUMNSONCOMBINEDSTATEMENTS-OVERVIEW presentedonlytofacilitatefinancialanalysis.datainthesecolumnsdonotpresentfinancialpositioninconformity Totalcolumnsonthecombinedstatementsarecaptioned"MemorandumOnly"toindicatethatheyare withgeneralyaceptedacountingprinciples.neitherisuchdatacomparabletoaconsolidation,lnterfund eliminationshavenotbenmadeintheagregationofthisdata. I,.USEOFESTIMATES managementomakestimatesandasumptionsthatafecthereportedamountsofasetsandliabilitiesandisclosure Thepreparationofinancialstatementsinconformitywithgeneralyaceptedacountingprinciplesrequires ofcontingentasetsandliabilitiesathedateofthefinancialstatementsandthereportedamountsofrevenuesand expensesduringthereportingperiod.actualresultscouldiferfromthosestimates. M.ENCUMBRANCES (2) TheVilageleviestaxesonrealandbusinespersonalpropertylocatedwithinitsboundaries.TheVilageutilizes TheVilagedoesnotutilizencumbranceacounting theservicesofthewinparishtaxasesortoasesthepropertyvaluesandpreparethevilage'spropertytaxrol. TheVilagebilsandcolectsitsownpropertytaxes. PropertyTaxCalendar AsesmentDate LevyDate TaxBilsMailed January1 TotalTaxesAreDue NoLaterThanJune1 OnorAboutOctober15 PenaltiesandInterestareAded December31 LienDate FortheyearendedJune30,20,taxesof5.92milswereleviedagainstpropertyhavingavaluationofsome January1 $175,560whichproducedsome$1,039inrevenue. AdValoremTaxesarebrokendownasfolows: GeneralAlimony Mils 9.19

20 (3) VILAGEOFSIKES,LOUISIANA NOTESTOFINANCIALSTATEMENTS (Continued) AtJune30,20,restrictedasetsoftheEnterpriseFundswereinvestedineitherinterestbearingchecking acountsortimedepositsandwererestrictedforthefolowingpurposes: (4) TaxBondSinking MeterDeposit BondReserve Depreciation&Contingencies Total Water $8,61 3,029 4, $21,70 Water Asumaryofenterprisefundproperty,plantandequipmentatJune30,20,isasfolows DistributionSystem Sewer (5) Balance 6-30-t9 $187,430 $671,020 Aditions (Deletions) -0- $ -0- Balance $187,430 $ Acumulated Depreciation $13,694 $10,716 ThefolowingisasumaryofbondandinstalhnentnotespayabletransactionsofVilageofSikesfortheyear endedjune RevenueBonds Balance $6,0Aditions Payments2.0 BondandinstalmentnotespayableatJune30,20arecomprisedofthefolowingisues RevenueBonds(EnterpriseFund) $91,10WaterRevenueBondsdatedDecember1,1981,duoinvarious anualinstalmentsfrom$1,0to$5,0throughjuly1,2019;interest at5%. 17 Balance

21 NOTESTOFINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) (5) $42,417areasfolows: TheanualrequirementstoamortizealdebtoutstandingasofJune30,20,includinginterestpaymentsof YearEndingJune30 Water 201 $5,20 Revenue Bonds 5, ,0 Thereafter 4,90 4,80 Total $ t.417 systemaretobemaintainedseparatelyandusedforthefolowingpurposes: UnderthetermsofthebondindentureonoutstandingWaterRevenueBondsdated1981,earningsofthesewer (a)paymentofalreasonableandnecesaryexpensesofoperatingandmaintainingfilesystem (b)eachmonththerewilbesetasideintoafundcaledthe"waterrevenuebondandinterestsinkingfund" anamountconstituting1/12ofthenextprincipalandinterestpayment. (c)eacbmonth,therewilbesetasideintoa"waterreservefund"5%oftheamountpaidintotilesinking Fund.Thesefundsmaybeusedonlyforthepaymentofmaturingbondsandinterestcouponsforwhich suficientfundsarenotavailableinthesinkingfund. (d)therewilalsobesetasideintoa"waterdepreciationandcontingencyfund"5%oftileamountpaidinto thesinkingfund.thesefundswilbeusedtocarefordepreciation,extensions,aditions,improvementsand replacementsnecesarytoperatethesystemproperly,andtopayinterestandprincipalonbondswhenthereis notsuficientmoneyinthesinkingorreservefund. (e)aloftilerevenuesreceivedinanyfiscalyearandnotrequiredtobepaidinsuchfiscalyearintoanyofthe abovenotedfundshalberegardedasurplusandmaybeusedforanylawfulpurpose. (6) Equipment Balance Aditions (7)IJTIGATION Total $16,590$34,20 Deletions Balance 16,590$34,20$ _.$ -0-$_"%-(.~9. -0-$50,790 aplicableinsurancepoliciesorisconsideredtobesignificantothevilage'sfinancialstatements. TheVilageofSikesisinvolvedinolitigationatJune30,20,whichisnotcoveredbytheVilage's 18

22 NOTESTOFINANCIALSTATEMENTS VILAGEOFSIKES,LOUISIANA (Continued) Name KenethWomack WandaMathews LyndaG.Parker Mayor BobEdmons Title AnualizedSalary CranfordJordan Alderman PoliceChief $2, (9)FUNDEFICITS depreciationtakenonthatpartoftheplantconstructedwithcontributedcapital.acumulatedepreciationtakenon thatpartoftheplantconstructedwithcontributedcapitalamountedto$13,694fortilewaterfundand$10,716forthe Thewaterfundandsewerfundhaveretainedearningsdeficitsof$52,527and$86,938respectivelybecauseof sewerfund. (10)LITIGATION TheVilagehadnoutstandingjudgmentsorpendinglitigationasofJune30,20

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25 VILAGEOFSIKES,LOUISIANA GENEIG~LFUND BALANCESHET JUNE30,20 Cash A~.SETS Receivables TotalAsets Liabilities AcountsPayable FundBalance TotalLiabilities Unreserved-Undesignated TotalLiabilitiesandFundBalance 13, ,235 o_~ $ "SeAcompanyingNotesandAcountant'sReport" 2

26 STATEMENTOFREVENUES,EXPENDITURES VILAGEOFSIKES,LOUISIANA ANDCItANGESINFUNDBALANCE YEARENDED]UNE80,20 GENERALFUND REVENUES: Taxes-AdValorem OcupationalLicenses TobacoTax Rebates Grants MiscelaneousRevenue Fines Donations TOTALREVENUES EXPENDITURES: Salaries&Benefits Suplies OficeExpense Other Insurance Utilities ProfesionalFes Advertising Rent RefundDonation GrantExpense EXCES(DEFICIT)OFREVENUESOVER TOTALEXPENDITURES EXPENDITURES FUNDBALANCES,BEGININGOFYEAR FUNDBALANCES,ENDOFYEAR $1,024 4, ,5095 1, $5, , ,48945O5O 14,50 6,058 $13,098 "SeAcompanyingNotesandAcountant'sReport" 23

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28 VILAGEOFSIKES,LOUISIANA LCDBGProject# CAPITALPROJECTSFNDS BaGn~Sh~t Cash ASETS TOTALASETS FundBalance TOTALIABILITIESANDFUNDBALANCE $ -0- $ -0- "SeAcompanyingNotesandAcountant'sReport" 25

29 VILAGEOF$1KES,LOUISIANA CAPITALPROJECTSFUNDS StatementOJRevenues,Expenditures AndChangesInEundBa(ances Budget(GapBasis)VsActual YEARENDED]UNE30,20 Revenues: Intergovernmental Expenditures: TotalRevenue Enginering Administration Equipment ExcesExpendituresOverRevenues TotalExpenditures FundBalanceBeginingofYear FundBalanceEndofYear Budget Actual Variance 7.7_;3.(~_0$7Z,360$-0: "r7,3_.6_0..$_7z,.3_60$_:.0:. 32,420 10,740 34,20.~,~o 32,420 10,470 $ 7,360$7, $ -O-$ $ -0- -O o-$-o- -0- "SeAcompanyingNotesandAcountant'sReport" 26

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31 VILAGEOFSIKES,LOUISIANA COMBININGBALANCESHF.ET ENTERPRISEFUND ]UNE.ctO,20 CURENTASETS: tks~kt~ WaterFund SewerFund Tota CashReceivables: UtilityBils 3.16 RESTRICTEDASETS." TOTALCURENTASETS 2,082 23,048 -~~ , BondSinkingFund RevenueBondReserve Depreciation&Contingencies $8,61 MeterDepositFund 4,678 PROPERTY,PLANTANDEQUIPMENT: TOTALRESTRICTEDASETS -~,-"~ti-'- 6,602 3, ,61 4,078 6, Property,PlantandEquipment LesAcumulatedDepreciation NETPROPERTY,PLANTANDEQUIPMENT $167,430 LI,~BIL TOTALASETS $73,736 (~!~9~. -$~o~sb~ $671,020 (10,716) $858,450 (24,410) 10,754$584,082$684,836 ~i~i~i~i.~.~i~31,~-o~ CURENTLIABILITIES(PayableFromCurentAsets) AcountsPayable CURENTLIABILITIES(PayableFromRestrictedAsets) AcruedInterest TOTALPAYABLEFROMCURENTASETS $ 610 ~_~$ -0- RevenueBondsPayable(CurentPodion) LONG-TERMLIABILITIES: TOTALCURENTLIABILITIES $2,74$ "-~- 610 ~f(t- -~4;~:,~i~ ~0-.~- $ i~i.i.;i's'~it'~i~i 2,74 2,0 CustomerDeposits RevenueBondsPayable TOTALONG.TERMLI,4BILITIES $2,927 62,0 FUNDEQUITY: TOTALIABILITIES ~o~ I~ISoCI7~ -0-$ 62,0 2,927 $ -0-$ i~;i~_~.i 70,281 MunicipalityandOther RETAINEDEARNINGS TOTALCONTRIBUTEDCAPITAL '~~65 $83,0 $671,020 $ -~~\~'2"b 754,020 ReservedForRevenueBonds Unreserved TOTALRETAINEDEARNINGS $13,97 (6,524) (153,462) 13,97 TOTALFUNDEQUITY TOTALIABILITIESANDFUNDEQUITY $30,473$584,082 10,754$564,082 $684,636 "SeAcompanyingNotesandAcountant'sReport" 28

32 COMBININGSTATEMENTOFREVENUES,EXPENSES VILAGEOFSIKES,LOUISIANA ANDCHANGESINRETAINEDEARNINGS YEARENDEDJUNE30,20 ENTERPRISEFUNDS OPERATINGREVENUES WaterFund SewerFund Tota ChargeForService OtherMiscelaneous $15,936$9,830 TOTALOPERATINGREVENUES $16,123$9, ,76187 OPERATINGEXPENSES Diagnostic ContractLabor Depreciation $ Repairs/MaintenanceandSuplies Utilities 13, $ OtherOperatingExpense 4,82 16,983 3, Insurance 1,02820O 5,76 OPERATINGINCOME(LOS) TOTALOPERATINGEXPENSES $10,597$20,196 -O- NON-OPERATINGREVENUE(EXPENSES) $5,526._$_aO,?.9.3_ 2, InterestIncome InterestExpense $ (3_,.2_!~)_ 52$ NETINCOME(LOS) TOTALNON-OPERATINGREVENUES(EXPENSE).$(2_:.6_~2_.)_ 563-O- $ 1,15 $2,864$(9,803) 563 RETAINEDEARNINGS(DEFICIT),BEGINING._$.(.5,39!_)~;._._.(7.:1.35_)$(J._32.~526.). $ (6,939) RETAINEDEARNINGS4DEFICIT),ENDING $(52,527)$(86,938)$(139,465) "SeAcompanyingNotesandAcountant'sReport" 29

33 COMBININGSTATEMENTOFCASHFLOWS VILAGEOFSIKES,LOUISIANA YEARENDEDJUNE30,20 ENTERPRISEFUND CashFromOperations AdjustmentsToNetIncome(Los) DecreaseInAcruedInterest Decrease(Increase)InAcountsReceivable Ad-Depreciation Increase(Decrease)InAcountsPayable CashProvidedByOperations NetAdjustments CustomerDeposits CashWasApliedTo TotalCashProvided RevenueBonds CustomerDeposits RestrictedAsets "l'otalcashaplied NetIncrease(Decrease)InCashFlow CashBeginingOfYear CashEndofYear WaterFund SowerFund Tota $2,864 $3,563(86(12918 $(9,8o3)$(6,~39),983(86) $3,46$13, ,30$ $6,680$ 35O 3,87$.3_:.8_L7_$:%.5.,~ , ,0$ $ $ 2,0421 1,94$ -0-1, ,87 $ 2o,393 5,821 $3,16$23,048$ 26,214 "SeAcompanyingNotesandAcountant'sReport" 30

34 MANAGEMENTLETERCOMENTS VILAGEOFSIKES,LOUISIANA arcfindingsnotedforimprovement,myrecomendationforimprovementandthevilage'splanforcorectiveaction. Duringthecourseofmycompilation,1observedconditionsandcircumstancesthatmaybeimproved.Below 20-M-I)Finding Condition:TheVilageofSikesdidnotfilecompiledorauditedfinancialstatementswithinsixmonthsaftertheirfscal yearend.louisianarevisedstatutes(lsa-rs)24:513requiresgovernmentalcompilationsorauditstobesubmitedto thelegislativeauditorwithinsixmonthsafterthefiscalyearend. Cause:TheVilagedidnotfiletimelyfinancialstatements,astheVilagewasunawareofthelawandits requirements. Criteria:LouisianaRevisedStatutes(LSA-RS)24:513requiresgovernmentalcompilationandauditstobesubmitedto thelegislativeauditorwithinsixmonthsafterthefiscalyearend. Efect:ByfailingtocomplywithLouisianaRevisedStatutes(LSA-RS)24:513,theVilagewasoutofcompliance withstatelawsandregulations. Recomendation:TheVilageshouldsubmititscompiledorauditedfinancialstatementswithinthestatutorilydefiued timeframe. Management'sPlanofCorectiveAction:TheVilagehashiredaCPAtobegincompiling&auditingisftnancia statementsinacordancewithlouisianarevisedstatutes(lsa-rs)24: M-2)Finding:Budgets Condition:TheVilageofSikesdidnotprepareabudgetforitsgeneralfundforthefiscalendedJune30,20.The statebudgetactsrequiresthatalgovernmentalunitspreparebudgetsforitsgovermnentalfunds. Cause:TheVilagedidnotprepareabudgetforitsgeneralfundasitwasunawareitwasrequiredtoso.TheVilage felthaitsrevenuewerenothighenoughtorequirebudgetpreparation. Criteria:Thebudgetactrequiresalgovernmentalunitspreparebudgetsforitsgovernmentalfundsbeforethe beginingofeachyear. Efect:FailingtoprepareabudgetfortheVilage'sgeneralfundcausedtheVilagetobeoutofcompliancewiththe sta{ebudgetact. Recomendation:TheVilageshouldbeginpreparingabudgetforitsgeneralfundbeforethebeginingofeachfisca year. Management'sPlanofCorectiveAction:TheVilagewilbeginpreparingbudgetsforitsgeneralfundbeforethe beginingofeachfiscalyearandocumentintheminutesthecouncil'saprovalofsaidbudget.

35 MANAGEMENTLETERCOMENTS VILI~GEOFSIKES,LOUISIANA (Continue~O 20-M-3)Finding: Condition:DuringtheperformanceoftheCPA'slimitedprocedures,theCPAnotedthatherewererorsincoding certainexpenses.asampleofexpensestakenfromthewaterfundfoundthatsomexpensesaplicabletothesewer fundwerecodedincorectlytothewaterfund. Cause:TheVilagereceivedaninvoiceforworkonboththewaterandsewerfundsandincorectlycodedthentire invoicetotilewaterfund. Criteria:Fundacountingisadoptedbygovernmentalunitstobreakdownthecostandexpensesofthevarious operationsandmaintenanceofthevilage'sactivities. Efect:Byincorectlycodinganexpensetotilewrongfund,theVilagegivesanincorectfinancialpictureofthecost andexpensesofmaintainingandcaryingouthevariouservicesfilevilageperforms. Recomendation:TheVilageshouldbemorediligentincodingfuturexpenditures/expenses Magement'sPlanofCorectiveAction:TheVilagetakemorecareandiligenceincodingfuture expenditures/expensestothecorectfund.

36 !i~i~i~i!i~!i~ili!i!~i!~!~!ilri~i~i~i~i~i~!i~i!~i!~i!i:~i!i~i!i!i!ili~i!ilil~!i!i~i~i~i!i!~i!i~il~i!i!si!~ ~!,!:i!~!ili~i'!i~i~i~!~!~i~i~!~i~!~i~!~!~is~ i~i!~!~!~!~i~i~!~!i~!~!il~i~i~i~i!~i~!~i~!~ 3

37

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39 LOUISIANATESTATIONQUESTIONAIRE June1,201 JohnR.Vercher,CPA 210N.2"dSL POBox1608 Jcna,La InconectionwithyourcompilationofourfinancialstatementsasofJune30,20andfortileyearthenended,andas requiredbylouisianarevisedstatute24:513andthelouisianagovernmentalauditguide,wemakethefolowing representationstoyou.weaceptfulresponsibilityforourcompliancewiththefolowinglawsandregulationandthe internalcontrolsovercompliancewithsuchlawsandregulations.wehavevaluatedourcompliancewiththe folowinglawsandregulationspriortomakingtheserepresentations. TheserepresentationsarebasedoltheinformationavailabletousasofJuneIl,201 PublicBidLaw Itistruethatwehavecompliedwiththepublicbidlaw,LSA-RSTitle38:212,and,whereaplicable,theregulations ofthedivisionofadministrafion,statepurchasingofice. CodeofElidesforPublicOficialsandPublicEmployes Yes[x]No[] Itistruethatnoemployesoroficialshaveaceptedanythingofvalue,whetherintheformofaservice,loan,or promise,fromanyonethatwouldconstituteaviolationoflsa-rs42: Itistruethatnomemberoftheimediatefamilyofanymemberofthegoverningauthority,orthechiefexecutiveof Yeslx]No[] thegovernmentalentity,hasbenemployedbythegovernmentalentityafterapril1,1980,undercircumstancesthat wouldconstituteaviolationoflsa-rs42:19. Budgeting YesIx]No[] WehavecompliedwiththestatebudgetingrequirementsoftheLocalGovernmentBudgetAct(LSA-RS39: )or lhebudgclrequiremenlsoflsa-rs39:34. AcountingandReporlng Yeslx]No[] Alnon-exemptgovernmentalrecordsareavailableasapublicrecordandhavebenretainedforatleasthreyears,as requiredbylsa-rs4:1,4:7,4:31,and4:36. WehavefiledouranualfinancialstatementsinacordancewithLSA-RS24:514,3:463,and/or39:92,asaplicable Yeslx]Nol] WehavehadourfinancialstatementsauditedorcompiledinacordancewithLSA-RS24:513 YesIx]NoI] Yeslx]No[]