;~OOOJAN II AN 9:I,'/

Transcription

1 = T RF:CEIVED ~LEGISLtJ ire AUDITOR O FFICIAL F~LE CO PY NOT S~ D OUT (X~rox n~ ec~ 'y ojpi~ ~rom this oopy and PLACE [lack in FILE) ;~OOOJAN II AN 9:I,'/ W A TER W O R K S D ISTR IC T N O, 6 O F TH E PA R ISH O F ST. M A R Y, STA TE O F L O UISIA NA FINA N CIA L STA TEM EN TS YearEndcd Septem ber30, 1999 anoer provisions ofstate law,i1"115 report is a public docum ent. A copy ofthe reporthas been subm itted to O~e audited,or r~viewod, entity and otherappropriab,-,public officials.]he reportis available for public inspectiol at the Baton Rouge ofice ofthe ~ gi~lative Auditor and,w here appropriate,at the,~ffice of the parish clerk ofcourt 0 ~,l~ase Date._/'~ "0

2 TA BLE OF CO N TEN TS Page IndependentA uditor'sreport 1-2 GENERAL I'URPOSE FIN AN CIAL STATEM ENTS (COM BINED STATEM ENTS -OVERVIEW ) Com bined balance sheet-allfund typesand accountgroups Com bined statem entof revenues,expenditures,and changes in fire d balance - allgovern m entalfund types C om paralivc statem entsof revenues,expenses,and changes in retained earn ings-proprietary fund type C om parative statem entsof cash flow s-proprietary fnnd type N otesto financialstatem ents SU PI'LI~M EN TA L IN FO RM A TION N TF,I~,N A I,CON TRO L AN D CO M PLIAN CE lndependenla uditor'sreporton Com pliance and on Internal ControloverFinancialReporling Based on an A uditof GeneralPurpose l:inancialstatem entsperform ed in Accordance w ith G ovgrll!llenla u _ dit~ Standards O THER SUPI'LEM I~N TA RY IN FO RM A TION Com paralive schedule of otheroperating expenses- enterprise fire d Scheduleofnumberofutility customers(unaudiled) Scheduleofinsurancein force(unaudicd) Schedule of interest-bearing deposits Sum m ary schedule of prioryearfindings Schcdnle of findingsand questioned costs M anagcm ent'scorrective action plan forcurrentyearfindings

3 ,A D arnall,sikes ([Z~Frederick N DEPF,N DEN T AU DITO R'S RI';PO RT,,~.,..It I>~. nan.( PA, Rt.lh.d I,~,)tl I. Jail\ N ik,s, 'A ( VA [)~11111):I' iit~l t.lltk"{ pa ('l;lytl,n I, IIatll;lll,~ I'A Iii[?t'llt II Ilaluall.III.~ I'A I'au]a II B ihlll, ('pa Stt'plHllll~ M Ilik~g,illbOlJl;llll,('I'A.]elllliit'] N / icgh,l,( pa ( hlix A N41llt,i,( pa John i, A lm att,,~ I,A K alhlven I t+a,,.,il,( I'A Nit>j..- ~ ) s I t,, NIl~A, ( I'A A lan M hl~h,t,( pa (:hti~llnt.a ]{ilgl+~lt,ll},( I'A SIt-XCll(+ ~/t,t,sa, ( I'A I tith (i Iilk-x~ui, ii, t I,A ilith (i ] OUtpUt, Ill>( ],A ])iiii11~']' I Iltlntill,( I'A "]~N IUI~, I ] ;llldl~, ( ]'A ( Iii1;i R ]Olllk'lit+l. ( I'A l;ltg;tlli) NIL.Hy.('I'A Jason H ~Wlil~l~l).~ IA The Board of Supervisors W aterworksd istrictn o.6 of the Parish of St+M ary, Slate of l,ouisiana W e have audited the accom panying generalpurpose fnancialstatem entsof the W aterw orksd istrict N o.6 of the Parish of St.M ary,state of Louisiana,a com ponent unitof the St.M ary Parish Cotm cil,asof and forthe yearended Septem ber30,1999,aslisted in the table of contents.these general purpose financial statem ents are the responsibility of the D istrict's officials. O ur responsibility isto expressan opinion on these generalpurpose financialstatem entsbased on our audit. W e conducted ourauditin accordance w ith generally accepted auditing standardsand the standards alrplicable to financial audits contained in G overnm ent A uditin~glstandards, issued by tile ('om plrollcrg eneraloflhe United States.Those standardsrequire thatwe plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem entsare free of m aterial m isstatem ent.a n auditincludesexam iaiug,on a testbasis,evidence supporting the am ountsand disclosuresin the financialstatem ents.a n auditalso includesassessing the accounting principles used and significantestim atesm ade by m anagem ent,asw ellasevahmting the overallfinancial statem entpresentation. W e believe thatourauditprovidesa reasonable basisforouropinion. G ovcrmnentala ccounting StandardsBoard TechnicalBulletin 98-1,D isclosuresaboutyear2000 Issues,requiresdisclosure of certain m attersregarding the year2000 issue in orderforfinancial statem ents to be in conform ity w ith generally accepted accounting principles. Such required disclosures inchlde: ~ aly significantam otm IOf resourceseom ulilted to m ake colnputersystem sand otherelectronic eqnipu/entyear2000-com pliant; agcncraldescription of the year2000 issue,including a description of the stages of w ork in processorcom pleted asof the end of the reporting period to m ake com lm ter system s and other electronic cqaipnaent critical to conducting operationsyear2000-com pliant;and tlthcl IOt;lliUn~ 1?5 I~uv I+t.u,~r.,d :,~,~cu c ] A "/C~SU~ ~ ~ ~1 I IaulllA\~,nut Itt.lt,+,IA 7+~S+5 II8 457 a ldt, 12o I J~tushcnt A xt,nut Suile ~01 5(14 ~sa ~,pt,a ao,i Pelt M t~,ltt A bllk.i]lt. I A in Nt)3 5071) u~,j theadditionalstagesof w ork necessary form aking the com putersystem sand otherelectronic equipm entyear2000-com pliant. m a,,.h u A.,~,..,..,,,

4 The D istricthasom itted such disclosures.w e do notprovide assurance thatthe D istrictis orw ill be year2000 ready,thatthe D istrict'syear2000 rcm ediation effortsw illbe successfulin w hole or in part,orthatpartiesw ith w hich the D istrictdoesbusinessw illbe year2000 ready. In ouropinion,the generalpurpose fioancialstatem entsreferred to above presentfairly,in all m aterialrespects,the financialposition of the W aterw orksd istrictn o.6 of the Parish of St.M ary, State of Louisiana,as of Septem ber30,1999,and the resultsof itsoperationsand the cash flow sof itsproprietary fund type forthe yearthen ended in conform ity w ith generally accepted accounting principles. In accordance w ith Governm enta uditing S _ landardg,we have also issued a reportdated N ovem ber 12,1999 on ourconsideration of the D istrict'sinternalcontroloverfinancialreporting,and ourtests of itscom pliance w ith certain provisionsof law s,regulations,contractsand grants. O uraudilw asperform ed forthe purpose of form ing an opinion on the generalpurpose financial statem entstaken asa w hole. The accom panying financialinform ation listed as"supplem ental Inform ation"in the table of contentsispresented forpurposesof additionalanalysisand isnota required partof the generalpurpose financialstatem entsof the W aterw orksd istrictn o.6 of the Parish of St.M ary, State of l,ouisiana. Snch inform ation,except for tlat portion m arked "unauditcd"on which we expressno opinion,hasbeen subjected to theauditing proceduresapplied in the auditof the generalpurpose financialstatem entsand,in ouropinion,isfairly stated,in all m aterialrespects,in relation to the generalpurpose financialstatem entstaken asa w hole. The financialinform ation forthe preceding yearw hich isincluded forcom parative purposesw as taken from the financialreport forthatyearin which we expressed an unqualified opinion on the generalpurpose financialstatem entsof the W aterw orksd istrictn o.6 of the Parish of St.M ary, State of l,ouisiaaa. A Corporation of Certified Public A ccountants M organ C ity,louisiana N ovem ber

5 G EN ER A L PU R PO SE FINA N C IAL STATEM EN TS (COM BINED STATEM ENTS -OVERVIEW )

6 W A TERW O RK S D ISTRICT N O.6 O F TH E PA RISH O F ST.M A RY, STA TE O F LO U ISIAN A Com bined Balance Sheet-A llfund Typesand A ccountg roups Septem ber30,1999 W ith Com parative TotalsforSeptem ber30,1998 Govern m entalfund Type D ebt Capital Service Projects Proprietary Fund Type Enterprise A SSETS AN D O TH ER D EBITS C ash lotcrest-bcaring deposits,atcost R eceivables: A ccounts A ccrued interest l'repaid insurance Reslricted assets: Interest-bearing deposits,atcost Property,plantand equipm ent A ccum ulaled depreciation C onstruction in progress A m ountavailable in debtservice fund A m ouo!1o be provided forrelirem enl of generallong-term debt 'lbtalasselsand otherdebils $ $ 39,496 1,588,600 1,045 $ 31, ,526 78, ,608 4,960,175 (2,286,349) 4,502

7 A ccountg roup G enerallong- Term D ebl "lbtals (M emorandum Only) ,496 2,0..30,504 $ 2,070,000 $ 31,045 1,807,622 78,561 1,045 11,527 61,608 4,960,175 (2,286,349) 4,502 39, , $ 35,589 1,989, ,270 1,181 14,128 56,353 4,498,867 (2,153,565) 100,448 26,525 2, $ 6,851~825

8 W A TERW O RK S D ISTRICT N O.6 O F TH E PA RISH O F ST.M A RY, STATE OF LO U ISIAN A Com bined Balance Sheet-AllFund Typesand AccountGroups(Continued) Septem ber30,1999 W ith Com parative TotalsforSeptem ber30,1998 G overnm entalfund Type Debt Capital Service Projects Proprielary Fund Type Enterprise IJABII,ITIES AN D FUN D EQUITY l.iabililies: A ccountspayable l'~aak overdraft A ccrued liabilities D ue to St.M ary Parish Council D ue to Sew erage D islrict07 l)ue to C ity of Pranklin D ue to W aterw orksand Sew erage D istrict#5 Payable fiom restricted assets- Custom ers'deposits l.ol'ig-ternldebt- G eneralobligation bondspayable Totalliabilities $ 32,359 1,148 9,317 2, ,230 61, ,252 Fund equity: C ontributed capital P,etained earnings- Unreserved,undesignated Fund balance - Reserved fordebtservice Um eserved: l)esignaled forsubsequent periods'expenditures Totalftm d equity _ 39,496 h~.j _1,589,64_~5 2,360, _ ~2,930,343 olalliabililiesand fire d equity

9 A ccotiiitg roup G enera]long- Term D ebt "lbtals (M emorandum Only) $ 32,359 1,148 9,317 2, ,230 $ 31,686 11,254 1,407 9,132 3, ,866 61,989 56,622 2,070,000 2,070,000 2,070, ,145,000 2,260,54_2 2,360,084 1,995, ,259 39, ,293 26,525 1, ,559,484 1,875,90~2 4,59!,276 The accom panying holesare an integralpartoflhisstatcm cnt 7

10 W A TERW O RK S D ISTRICT N O.6 O F TIlE PA RIS]IO F ST.M A RY, STA TE O F LO U ISIAN A Com bined Statem entof Revenues,Expenditures,and Changesin Fund B alance - A llg overnm entalfund Types Y earended Septem ber30,1999 D ebt Service Capital Projects Total (M em orandum Only) 1999 ]~,even ties'. Taxes-ad valorem M iscellar~eous Interest Totalrevenues $216,962 1, ,87.~ _ 78,270 _ 78,270 $ 216,962 1,917 78, ,149 Expenditures: ('urreni- G eneralgovernnlent: Adm inistrative D ebtservice - Principalretirem ent Interestand fiscalcharges Totalexpenditures 7,318 75, ,59 _ 0 205,90 _ 8 7,318 75, _ 205,908 Excessof revenhesover expenditures 12,971 78,270 91,24 und balance,beginning 26, ,427 Residualeqtfity transfersto enterprise fnnd _ ( ) (364,52j51 Fund balance,ending ~ $ 1,629,141 The accom panying notesare an integralpartof thisstatem ent 8

11 W A TERW O RK S D ISTRICT N O.6 O F TH E PA R1StlO F ST.M A RY, STA TE O F LOU ISIAN A C om parative Statem entof Revenues,Expenses,and C hangesin Retained Earnings Proprietary Fund Type Y earsended Septem ber30,1999 and 1998 O perating revenues: W atersales lnslallatiou Penalties M iscellaneous Totaloperating revenues Enterprise Ftm d $ 541,020 9,117 19,889.40, ,144 $ 555,220 15,865 19, O perating expenses: Salaries Payrolltaxes C hem icals U tilities Iistlralee Repairsand m aintenance 1)epreciation O lher Totaloperating expenses 298,096 22,915 77,103 66, , , , , ,922 21,978 87,719 65, , , ,206-90, O perating loss ( / _I228,5631 N onoperating revenues(expenses) Taxes-ad valorem Inlereslil'~eolYle Sale of assets hllergovernlnontalreve lue: Slate revenue sharing Tolalnonoperaling revem m s 63, ,147 ~ 192, ,840 7,016 6, _ 204,!~1 (123,034) (24,382) Retained earnings,begilm ing 093,293 ~ 717,675 Rclained earnings,ending $ 570,259 $ 693,293 "he accom panying no esare alintegralpartof thisstatem ent 9

12 W ATERW ORKS DISTRICT N O.6 O F TH E PA R1SttO F ST.M A RY, STA TE O F LO U ISIAN A Com parative Statem entsof Cash Flow s Proprietary Fund Type YearsEnded Septem ber30,1999 and 1998 Enterprise C ash flow s frm n operating activities O perating loss ]~_( ) $ ( ) Adjustmentsto reconcileoperating lossto net cash used by operating activities- Depreciation Changesin currentassetsand liabilities: (Increase)decreaseinaccountsreceivable (Increase)decrease in otherassets Increase(decrease)in accountspayableand accrued liabilities Increase ilctlstom erdeposits Totaladjustments N etcash used by operaliog aclivilies C ash flow s from noncapitalfinancing activities: A d valorem taxes Slate revenue sharing received N elcash provided by noncapitalfinancing activities C ash flow sfrm n capitaland related financing activities: A cquisilion of utility property, plantand equipm ent Proceedsfr om sale of plantand equipm ent Residualequity transfer N etcash used by capitaland related activities Cash flow sfrom investing activities: Pulchasc of interest-bearing deposi{s Proceedsfrom the m aturitiesof inlerest-bearing deposits lnlerestreceivcd on inleresl-beariug deposits N etcash provided by investing activities N etincrease in cash and cash equivalents (~ash and cash equivalents,beginning of year Cash and cash cquivalents,end ofyem , (10,664} ,743 ( / 163,313 22, (5.823) 150,000 7,J88 2,188 5,886 ~ 11,293 ~2 17, ,206 (11,403) (1,326) 12,529 _ (97.088) 168, ! (426,261) 6, f25.814) (95,000) 90,000 7,016 _ 2,016 69,747 ~ 41,546 $ 211,293 0

13 W A TERW ORKS DISTRICT NO.6 O F TIlE PA RISH O F ST.M A RY, STA TE OF LOU ISIAN A Coml)arativeStatementsof(:ashFlows(Contimied) YearsEnded Septem ber 30,1999 and 1998 Enterprise Reconciliation of cash and cash equivalenlsper statem entof cash flow sto the balance sheet: Cash and cash equivalents,beginning of period - Cash -unrestricted Interest-bearing deposits-tm reslricted Interest-bearing deposits-reslricted Less: Interest-bearing depositsw ith a m aturity overthree m onths Totalcash and cash equivalents Cash and cash equivalents,end of period - Cash -unrestricted Interest-bearing deposits-unrestricted Interest-bearing deposits-restricted Less: Interest-bearing depositsw ith a m aturity overthree nlonths Totalcash and cash equivalents N etincrease $ 35, ,351 56,353 (50.000) , , (55.000) $ $ 54,884 79, ,000)._ J , ,351 56,353 (50.000) _ $ he accom panying notesare an integralpartof Ibisslalcm enl

14 W A TERW O RK S D ISTRICT N O.6 O F TIlE I~A RISH O F ST.M A RY, STA TF,OF LOU ISIAN A N otes1o FinancialStatem ents N O TE 1 SU M M A RY O F SIG N IFICA N T A CCO UN TIN G PO LICIES 'File W aterw orksd istrictn o.6 of the Parish of St.M ary,state of Louisiana,w hich isa com ponent atiltof the St.M ary Parish Council,w ascreated by alordinance oftbe St.M ary Parish Council (formerly Police Jury).TheDisirictoperatesunderaBoard ofcom lnissioners.thepurposeofthe D istrictis to provide w aterutility service to residentsw ithin itsbotm daries. The accounting and reporting policiesof the W aterworksd istrictn o.6 of the Parish of St.M ary, State of Louisiana conforln to generally accepted accounting principles as applicable to governm ents. Such accounting and reporting procedures also conform to the requirem ents of Louisiana Revised Statutes24:513,the Louisiana G overnm entala uditg uide and to the industry andiiguide, _ A udits9fslatc and LocalG overnm entalunits "File follow ing ;.sa sum m ary of certain significantaceountit~g policies A. Finanda/Re~ _orting Er~t~:~ Thisreportincludesallfunds which are contt'olled by ordependenton the DistrietExecutive and Legislative branches(the Board of Com m issiol~crs).controlby ordependence on the Districtwas determ ined on the basisof budgetadoption,taxing authority,antbority to issue debt,cleclion or appointm entof governing body,and othergeneraloversightresponsibility. The D istrictisa com ponentunitof the Parish of St facilitiesorfinancing,itdoesexercise som e centre M ary.a lthough the Parish doesnotprovide overoperations. B. l) asiso f Presentatiol ~ The accountsof the D istrictare organized oo lhe basisof fundsand acconntgroups, cach of which is considered a separate accounting entity. The operationsof each land are accounted forw ith a separate setof self-balancing accountsthatcom prise itsassets,liabilities,fund equity,revenuesand expenditures,orexpenses,asappropriate,g overnm e~tresources are allocated to and accom ~ted for in individuallandsbased upon the purposesforw hich they arc to be spentand the m eansby w hich spending activitiesare controlled.the variousfim dsarc grouped,in the generalpurpose financial statem entsin thisreport,into three generic fire d types and two broad fire d eatcgorlcsasfollows: G overnm entalfund - Debtservice thud D ebtservice fundsare used to accotm tfortile accun~ulatim lofrcsom'ces for generallong-term debtprincipal,ialerest,and related costs. 2

15 W A TERW O RK S D ISTRICT N O.6 O F TH E PA RIStIOF ST.M A RY, STA TE O F LO UISIAN A N otesto FinancialStatem ents SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capitalprojectsfired C~p~,alprojectsfu~ldsare used to accountforfittatrcl.alresourcesto beused fortheaequisi6on ot construction ofmajorcapitalfacilities(otherthan thosefinancedby proprietary funds). Proprietary Fund - Enterprise fire d Enterprise fimdsare used to accountforoperations(a)thatare financed and operated in am anner sim ilarto private businessenterprises-w here the intentof the governing body isthatthe costs (expenses,including depreciation)of providing goodsorservices to the generalpublic on a coutinuing basis be financed orrecovered primarily through usercharges;or(b)where the governing body hasdecided thatperiodic detennination of revenuesearned,expenses incurred, and/or net incom e is appropriate for capitalm aintenance,public policy,m anagem eutcoutrol, accountability,orotherpurposes. The D istrict'senterprise fund isthe Utility Fund. Fixed A ssetsand Lou~,-Term Liabilities The accounting and reporling treatm ent applied to the fixed assets and long-term liabilities associated w ith a fund are determ ined by itsm easurem entfocus. A llgovernm ental fund type operations are accounted for on a spending or "financialflow " m easurem entfocus,and only currentassetsand currentliabilitiesare generally included on their balance sheets. A llfixed assetsare stated athistoricalcostorestim ated historicalcostif actualhistoricalcostisnot available. l,ong-term liabilitiesexpected to be financed from governm entallandsare accounted forin the G enerallong-term D ebta ccountg roup. The proprietary fire d isaccounted foron a costof servicesor"capitalnraiateuauee"m casurctnent focus,and alassetsand allliabilities(whethercuneutornoncurrcnt)assoeiatcd with itsactivity are included on itsbalance sheet. l)cpreciatiou of allexhaustible fixcd assetsused by the proprietary fire d ischarged asan expense againstitsoperations.d epreciation hasbeen provided overthe estim ated usefullivesusing the shaight-linc inethod. The estim ated usefid livesare asfollow s: W ateru tility Syslcm Equipm cut 50 years 8 years

16 W A TERW O RK S D ISTRICT N O.6 O F TIlE PA RISH O F ST.M ARY, STATE OF LOUISIANA N otes to FinancialStatem ents SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I). Basisof A ccounting The proprietary fund isaccounted forusing the accrualbasisof accounting w hereby revenuesare recognized w hen they are earned and expensesare recognized w hen incurred. U nbilled utility service receivables,resulting from utility servicesrendered between the date of m eierreading and billing and the end of the m onth,are estim ated and recorded atyearend. A llgovern m entalfim dsare accounted forusing the m odified accrualbasisof accounting. Their revenuesare recognized w hen they becom e m easurable and available asnetenrrentassets. A d valorem taxesare recorded in the yearin w hich taxesarc assessed. Interestincom e isrecorded w hen earned,and substantially allotherrevenuesare recorded w hen received. E. Statem entof C ash Flow s Forpurposesof the statem entof cash flow s,tile D istrictconsidersallhighly liqnid investm entsw ith a m aturily of three m onthsorlessw hen purchased to be cash equivalents. Bad D ebts U ncollectible am ountsdue forcustom ers'utility receivablesare recognized asbad debtsby direct w rite-off atthe tim e inform ation becom esavailable which w ould indicate the uncollectibility of the palticularreceivable.a lthough the specific charge-off m ethod isnotin conform ity w ilh generally accepted acconnting principles(gaap),no allowance foruncollectible accountsreceivable was m ade due to im m ateriality. G. V acation and Sick Leave O n N ovem ber21,1989,the D istrictadopted an annualvacation and sick leave policy forallfidl tim e em ployees. V acation variesw ilh the length of service and cannotbe carried forw ard. Sick leave isaccrued ata rate of one day perm onth and isallow ed to accum ulate up to twelve days.n o sick leave is payable on term ination. A ny liability the D istrictm ighthave in this regard at Septem ber30, 1999,is considered im m aterial;therefore,no liability has been recorded in the generalpurpose financialstatem ents. 1. lpteresl=13e _ aring _ ~ osits Interest-bearing depositsare stated atcost,w hich approxim atesm arket. I!roprie!a!'y Ftmd "l'yj~eaccoun in~g l'roprictary fired typesfollow generally accepted accounting principles(gaap)prescribed by the G overn m entala ccounting StandardsBoard and allapplicable FA SB pronouncem ents.

17 W A TERW O R K S D ISTRIC T N O.6 O F TH E PAR1Stt O F ST.M ARY, STA TE O F LO U ISIAN A N otesto EhlancialStatelnents N O 'I'F,1 J. SUM M ARY OF SIGN IFICANT ACCOUN TING POLICIES (CON TINUED) Capitalization of lnteres~expctlse Itisthe policy of the D istrictto capitalize m aterialam ountsof interestresulting from borrow ingsil lhe course oflhe construction of fixed assets. There was no interestcapitalized during the fiscal yearended Septem ber30,1999. K..( ~pm parative Data Com parative totaldata forthe prioryearhave been presented in the accom panying generalpurpose financialstatem ents in orderto provide an understanding of changes in the D istrict'sfinancial position and operations. TotalColum ns-m em orandum O n Totalcohunnson the generalpurpose financialstatem entsare captioned "M em orandum O nly"to indicate thatthey are presented only to facilitate financialanalysis.d ata in these cohnnnsdoesnot presentfinancialposition in conform ity w ith generally accepted accounting principles.n eitheris such data com parable to a consolidation. M. U se of Estim ates The preparation of financialstatem ents in conform ity w ith gelterally accepted accoontiog principals requires m anagem entto m ake certain estim ates and assum ptions. Those estim ates affectthe reported am ountsof assetsand liabilitiesand disclosure of contilrgentassetsand liabilitiesatthe date of the financialstatem ents. They m ay also affectthe reported an~om~ts of revenues and expensesof proprietary fundsduring the reporting period. Actualresultsm ay differfi'om lbese estim ates. N O TE 2 M EETIN G EX PEN SE M eeting expense paid to the Board of Supervisorsibrthe yearending Seplem ber30,1999,isas follow s: V.J.St.Blanc W illie W elch,jr 1lorace B urrell G erald Bourg RoylaTrahan (appointed Novem ber1997) $ $ 2,744

18 W A TERW O RK S DISTRICT N O.6 O F TIlE PA RISItO 17ST.M A RY, STA TE O F LO UISIAN A N otesto FinancialStatem ents CA SttAN D IN TEREST-BEA RIN G DEPO SITS U nderstate law,the D istrictm ay depositfundsw ithin a fiscalagentbank organized underthe law s of the State of Louisiana,the law sof any otherstate in the Union,orthe law sof the United States. The D istrictm ay investin certificatesand lim e depositsof state banksorganized under1.ouisiana law and nationalbankshaving principalofficesin Louisiana.A tseptem ber30,1999,the D istrict hascash and interest-bearing deposits(book balances)totaling $1,900,275,asfollows: D em and deposits M oney m arketand savingsaccounts Tim e deposits $ 31, , These depositsare stated atcost,which approximatesnmrket.uoderstate law,thesedeposits,(or the resulting bank balances)m ustbe secured by federaldepositinsurauce orthe pledge of securities ow ned by the fiscalagentbank.the m arketvalue of the pledged securitiesplusthe federaldeposit insurance m ustatalllim esequalthe am ounton depositw ith the fiscalagentbank.these securities are held in the nam e of the pledging fiscalagentbank in a holding orcnstodialbank thatism utually acceptable to both parties.depositbalances(bank balances)atseptem ber30,1999,are secured as follow s: B ank balances Federaldepositinsurance Pledged securities(category 3) Totalfederalinsurance and pledged securities I:;xcess $ , ~997,577 I079,70~ Pledged securities in Calegory 3 includes ulfinszjred orunregistered inveslm ents forwhich the securitiesare held by the brokerordealer,orby itstrustdepartm entorageut,butnotin the D istrict's nam e.even though thepledged securitiesareconsidered nncollateralized (Category 3)Louisiana Revised Statute 39:1229 im posesa stalatory requirem enton the custodialbank to adve~lise ald sell the pledged securitiesw ithin 10 daysof being notified by the D istrictthatthe fiscalagenthasfailed to pay deposited fundsupon dem and. RESTRICTED A SSETS Restricted assetsconsistsof cash pledged forcusloulersdepositscollected at~d rctained

19 W A TERW O RK S D ISTRICT N O.6 O F TH E PA R ISItO F ST.M A RY, STA TE O F LO U ISIAN A N otes to FinancialStatem ents N O TE 5 CItAN G ES 1N LON G -TERM D EBT The follow ing isa sum m ary of bond transactionsof the W aterworksd istrictn o.6 of the Parish of St.M ary,state of Louisiana,forthe yearended Septem ber30,1999: O bligation Bondspayable,O ctober 1,1998 Bondsretired Bond payable,septem ber30,1999 $ 2,145,000 75,000 Bondspayable atseptem ber30,1999 iscom posed of the follow ing individualissue G eneralobligation bonds $2,350, Sewerage bonds;due in annualinstallm entsof $75,000 to $195,000 through M arch 1,2015; interestrate of 9 percent perannum ;payable by levy and collection ofad valorcm taxes Tire annnm requirem ents to am or0ze alldebtoutstanding asof Septem ber30 interestpaym entsof $1,019,748,are asfollow s: Y earending Septem ber30, $ 2,070, ,including G eneral O bligation $ 196, , , , ,290 2,133,348 $3,089,748 N O TI"6 A I)V A I,O REM TA X ES A d valorcm taxesattach asan enforceable lien on property asof January 1of each year.taxesare levied by 01c D istrictin Septem beroro ctober"and are actaal/y billed to taxpayersin N ovcm beror l)cccm bcr.b illed taxesbecom e delinquenton January 1of the follow ing year.the St.M ary l'arish Sheriff billsand collectsproperty taxesforthe D istrictusing the assessed valuesdeterm ined by the tax assessorof St.M ary Parish. Forthe yearended Septem ber30,1999,19.28 m illswere authorized. Totallaxcs levied w ere $380,276.There w asno taxesreceivable atseplem ber30,

20 W A TERW O RK S DISTRICT N O.6 O F TIlE PA RISH O F ST.M A RY, STA TE OF LOU ISIAN A N otesto FinancialStatem ents NOTE 7 PROPERTY,PLAN T AN D EQUIPM ENT A som m ary of property,plantand equipm entatseptem ber30,1999 follow s Land System Equipm ent Less: A ccum ulated depreciation $ 6,926 2,643, ,960,175 (2, ) N etproprietary fund type property plantand equipm ent N O TE 8 RETIREM EN T CO M M ITM EN TS A llfifll-tim e em ployees of the W aterworks D istrictn o.6 of the Parish of St.M ary,state of Louisiana,participate in the ParochialEmployees'RetirementSystem of Louisiana (Plan B).This System isamultiple-employerpublicretirementsystem (PERS)andiscontrolled andadministered by a separate board of trustees. Pertinentinformation relative to thisplan follow s: ParochialEm ployees'retirem entsystem Plan m em bersare required to contribute 2.0 percentof theirannualcovered salary to the system w hile the D istrictis required to contribute the slalutory rate of 1.0 percentof the totalam m al covered salary.the D istrict's contributionsto the system for11e ),earsended Seplelnber30, 1999, 1998 and 1997 were $7,399,$7,105,and $11,375respectively,equalto the required contribution for each year. A publicly available financialreportthatincludesfinancialstatem entsand required supplem enta financialinform ation m ay be obtained by w riting to the ParochialEm ployees'retirem entsysleln P.O.Box 14619,Baton Rouge,Louisiana R ISK M AN A G EM EN T The D istrictisexposed to variousrisksof lossrelated to torts;theft of,dam age to,and destruction of assets;errorsand omissions;injuriesto employees;andnaturaldisasters.thedistricthaselectedto purchase insurance coverage through the com m ercialinsurance m arketto coveritsexposure to loss, The l)ish ictis insured up to policy lim itsforeach of the above risks. There w ere no significant changes in coverages,retentions,orlim itsduring the yearended Septem ber30,1999. Settled claim shave notexceeded the com m ercialcoveragesin any of the previnusthree fiscalyears. N O 'I'E l0 PEN I)IN G I.ITIG A TIO N qhe D istrictispresently notinvolved in any litigation 8

21 SUPPLEM EN TA L IN FO R M A TIO N

22 INTER N AL C O N TR O L A N D CO M PLIA N C E 20

23 ,ik ])~,l,l,y i, ]it.tltli~k,( I.A ( 1~lsion I i)~lln,ii ( pa I u~ n,,n l~:,,,,;,n n l,t PA ['aula I~ I~ihln,( pa D arnall,sikes Frederick, IN D EPEN DEN T A U D ITO R'S REPO RT O N CO M PLIAN CE AN [) ON IN TERN A L CO N TRO l,ov ER FIN AN C IA L R EPO RTIN G BA SED ON AN A U DIT O F FIN AN CIA L STA TEM EN TS PERFO RM ED IN A CCO RD AN CE W I'FttG O V ERN M EN T AU DITIN G STAN D A RD S It'lll~itt-i S / i~~~lk't,( ]'A ( hris A M ill~l,( I'A Ill[Ill ]~ m lll~ol~l.{ ]'A K ~llh JCt,l~ I I);u nail Slcph~n R D ischlcl,m lla A lun M la~lot ('hiiblille A ](aspl~cll} N1~%~1~(i N~oosit Ilith (; Io~'~ cl, h I).,,,,~ r P,,m m h,n,~.,. I I;N,d,> ( al], R ]Ol~[t.liO[ Ilacgan l) Slt'll3 The Board of Supervisors W aterworksd istrictn o.6 el'the Parish of St.M ary, Slate of IJouisiana ]~l~il?,t'ltc. I A 7050N 3 1N.2 17 ~ ls, I) }I I ]~l~llt'lmxk~lllt I~lni(t-, IA 7115 ~5 ZlN,i57,114(, 12O I B l[lsht.;ll A,t.llut, Suilc ~o I Nl~,lpan ('it).ia 71~180 W e have audited the financialstatem em sof the W aterworksd is riotn o. M ary,stale of Louisiana,a com ponentnnitof the St.M ary Parish Couucil,asof and forthe year ended Septem ber30,1999,and have issued ourreporlthereon dated N ovem ber12,1999,w hich w asqualified due to tile om ission of the year2000 disclosuresthatare required by G overnm ental A ccounting StandardsBoard TecbnicalBulletin 98-1,D isclosuresabouty ear2000 Issues. W e conducted ourauditin accordance w ith generally accepted auditing standardsand the staudards applicable to financial audits contained in G overnm ept _Au~ Standards issued by the (~om plrollerg eneralof tile U m tcd Slates. ]A 7O5I(I 6 of theparishofst.,xh,~,,l~.;,~,~~47, '~'~"~'~~ A s partof obtaining reasonable assurance aboutw hethertile W aterw orksd istrictn o.6 of the Parish of Sl.M ary,state of Louisiana'sfinancialstatem entsare free oflnaterialm isstatem ent,w e perform ed testsof itseonlpliance w ith certain provisionsof law s,regulations,contractsand grants, noncom pliance w ith w hich could have a directand m aterialeffecton tbe deterulination offinaueial staten/eutam ounts.ilow ever,providing an opinion on com pliance w ith those provisionsw asnot an objectiveofourauditand,accordingly,wedo notexpresssuch an opinion.theresultsofour leslsdisclosed no instancesof noncom pliance thatare required to be reported under(;overnn}cnt /},lu!i!i!~g Sl_andar0_s~ n!croa~(;oolrolover!!inanciall~cportit~ hiplanning and perform ing ouraudit,we considered tile W aterw orksd islrictn o.6 of the Parish of St.M ary,state of Louisiana's internalcontroloverfinancialreporting in ordcrto determ ine our auditing proceduresforthe purpose of expressing ouropinion on thc financialstatenlentsand notto provide assurance on tile internalcontroloverfinancialreporting,llow ever,w e notcd a certain n/atterinvolving tile inlernalcontroloverfinancialreporting and itsoperation thaiwe considerto be a reportable condition.keportab e conditionsinvolve m atterseonliug to ourattentiou relaling to significantdeficienciesin the design oroperation of the intcrnalcontroloverfinancialreporling /hal,inonrjndgnlent,cookladversely affecttheemily'sability to record,process,summarize,and reportfinancialdata consistentw ith asscrtionsof nlanagem entin tile finaucialstatcm cnls.the 2

24 reportable condition isdescribed in tile accom panying schedule of findingsand questioned costsas item A m aterialw eakncssisa condition in w hich the design oroperation of one orm ore of the internal controlcom ponentsdoesnotreduce to a relatively low levelthe risk thatm isstatem entsin am ounts thaiw ould be m aterialin relation to the financialstatem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by em ployeesin the norm alcourse of performing theirassigned functions.o urconsideration of the internalcontroloverfinancialreporting wouklnotnecessarily disclose allm atters in /he internalcontrolthatm ightbe zvporlable coaditionsat)d,accordingly, w ould notnecessarily disclose allreportable conditionsthatare also considered to be m aterial w eaknesses,asdefined above.!low ever,w e believe the reportable condition described above as 99-1isa m aterialw eakl~ess. Thisreportisintended forthe inform ation and use of the D istrict'sm anagem entand isnotintended 1o be and should notbe used by anyone otherthan those specified parties..c/)aeaa/z oyi,4zo 6;".~/~_~c/.~do~ A Corporation of Certified Public A ccountants M organ C ity,louisiana N ovem ber

25 O TH E R SU PPLE M EN TA R Y IN FO R M A TIO N

26 W ATERW O RK S D ISTRICT N O.6 O F TH E PA RISH O F ST.M A RY, STA TE O F LOU ISIAN A Com parative Schedulesof OtherO perating Expenses Enterprise Fund Y earsended Septem ber30,1999 and O therexpebses: A dvertising A ssessor'scom pensation Bad debts M ccting cxpcnsc Engineering Legala,d accounting M iscellaneous O ffice supplies l~,elirem ent Salesand I.Ise taxes Supplies Truck cxpense l'otalothcrexpenses $ 1,457 5,049 2,054 2,744 8,400 6,169 5,327 15,025 7,399 12,925 3,928 _ 4,618 $ 659 5, ,695 8,400 6,284 11,262 12,780 7,105 14,737 14,216 7,204 24

27 W A TERW O RK S DISTRICT N O.6 O F TH E PA R1SItO F ST.M A RY, STA TE OF LO U ISIAN A Schedule of N um berof Utility Ct~stom ers (Unaudited) Septem ber30,1999 Recordsm aintained by tile D istrictindicated the fi~llow ing num berof w atercustom ersw ere being served during the m onth of Septem ber:

28 W A TERW O RK S D ISTRICT N O.6 O F TIIE PA RISH O F ST.M A RY, STA TE O F LOU ISIAN A Schedule of Insurance in Force (Unaudited) Seplem ber30,1999 Coverage A m ounts Comprehensivegeneralliability,bodily injury and property dam age/com bined single lim it Surety bonds- K eith LeBlanc M att A nn B lanchard M eierreader Independentagent Public officialsand em ployeeserrorsand om issions W orknlen'sco llpensation - 500,000 10,000 1,000 1,000 1,000 2,000,000 statutory I00,000 Businessauto (hired and non-ow ned) B uilding,plant,and equipm ent 300, ,950

29 W ATERW ORKS DISTRICT NO.6 O F TIlE PA RISH O F ST.M A RY, STA TE O F LO UISIANA Schedule of Interest-Bearing D eposits Septem ber30,1999 Interest M attlrity R ate. Proprietary Fund: O perating assets- Savings N/A N/A various $ 179,526 Restricted assets- Insured m oney m arket Certificate of deposit-itibernia Bank N/A 365 days N/A 7/26/2000 various 5.10% 6, Totalproprietary fimd D ebtservice Fund: ]nsurcd m olcy m arket Totaldebtservice fund N /A N /A various _ ,49~ CapitalProicctsFund: Cerlificate of de)osii-regionsbank Certificate ofde,osit-p,.egionsbank Certificate of de)osit-regionsbank C m~.ificate of de~osit-regions Bank Ccrlificate of derjosit-regionsbank CelXificate of de:yosit RegioiIsBank Cellificate of de~osit RegionsBank Certificate ofde)osit RegionsBank Certificate of dem sit RegionsBank Cm tificatc of de3osit RegionsBank Certificate of de~osit RegionsBank Ccltificatc of dem sit Regions]Bank ('eitifica~e of de ~osit-regiousbank Cerlificateofde )osit-regionsbank Insured m oney m arket Totalcapitalprojectsfund 365 days 365 days 365 days 365 days 365 days 365 days 365 days 365 days 16 m onths 15m onths 12/18/1999 1/17/2000 1/I6/2000 2/16/2000 3/18/2000 6/16/2000 7/16/2000 7/13/2000 1/17/ /2000 IO/2O/2.OOO 9/20/ /20/1999 2/20/2001 N /A 4.05% 4.15% 4.15% 4.15% 4.15% 4.15% 4.211% 4.259% 5.20% 5.15% 5.10% 5.10% 5.15% 5.20% various 100, , , , , , , , , , , , ,000 45, ,60~

30 W A TERW O RK S D ISTRICT N O.6 O F TIlE PA R1SIIO F ST.M A RY, STA TE O F LOU ISIAN A Sum m ary Schedule of PriorY earfindings Seplem ber30, Finding Slalus: 98-2 Finding Slalus: Inadequate Segregation of A ccounting Functions Thisfinding isunresolved. See currentyearfinding 99-1 U nsecure _ d _ Deposils Thisfinding only applied to the yearended Septem ber30,1998

31 W ATERW O RK S D ISTRICT N O.6 O F TIlE PA RISH O F ST.M A RY, STA 'II:,O F LO U ISIA N A Schedule of Findingsand Queslioned Costs Septem ber3(i,1999 Pat-tI: Sum m ary of A uditor'sresults FIN AN C IA l,sta TEM EN TS _A t~ditor'srej3orl- FinancialStatem ents A qualified opinion hasbeen issued on W aterw orksd istrictn o.6'sfinancialstatem entsasof and forlhe yearended Septem ber30,1999. Reoorlable Conditions- FinancialStatem ents O ne reporlable condition in internalcontroloverfinancialreporting w asdisclosed during the auditof the financialstatem entsand isshow n asitem 99-1in Parl2 and isa considered m aterialw eakness. M aterialn ou _. c~end~liance FinancialReporling There w ere no m aterialinslancesof noncom pliance noted during lhe auditof the financialstatem ents EI)ER A L A W A R D S Thissection is notapplicable forthe fiscalyearended Septem ber30,1999 'art2: FindingsRelating to an A uditin A ccordance w ith G overnm entala uditing Standards 99-1 Inadequate S _ e _ gregatiqnpf_acc_oqnth~gfuncl_i_99s I)ue to the sm allnum berof accounting personnel,the D istrictdid nothave adequate segregalion of lim ctionsw ithin the accounting system s. Recoum ~endation Based upon lhe size of the operation and lhe costbenefitof additionalpcrsonnelitm ay notbe feasible to achieve com plele segregation of duties. art3: Findingsand Questioned CoslsRelating to FederalI'rogram s A 1Scptcm bcr30,1999,ihe l)islrictdid notm cclthe requirem enlsto have a single audil accordance w ilh O M B C irculara -133,therefore thissection isnotapplicable. 29

32 W A TERW O RK S DISTRICT N O.6 O F TH E PA R1SItO F ST.M A RY, STA TE O F LO UISIAN A M anagem ent'scorrective A ction Plan ForCnrrcnlY earfindings Septem ber30,1999 Response to Finding 99- N o response is considered necessary