ACADIA PARISH COMMUNICATIONS DISTRICT FINANCIAL REPORT DECEMBER 31, 2005

Transcription

1 060CT30 AHIf: ' (' : 28 ACADIA PARISH COMMUNICATIONS DISTRICT FINANCIAL REPORT DECEMBER 31, 2005 Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. i i Release Date

2 CONTENTS Exhibit/ Schedules Page INDEPENDENT AUDITORS' REPORT 1 and 2 GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of net assets Statement of activities A B FUND FINANCIAL STATEMENTS Balance sheet - governmental funds Reconciliation of the governmental funds balance sheet to the statement of net assets Statement of revenues, expenditures, and changes in fund balances - governmental funds Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities Notes to financial statements C 8 and 9 D 10 E 12 and REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules: General fund Wireless technology fund Notes to the budgetary comparison schedules OTHER SUPPLEMENTARY INFORMATION Nonmajor Governmental Funds: Combining balance sheet Combining statement of revenues, expenditures, and changes in fund balances REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS G-l G-2 G-3 H-l H-2 26 and and 36 Schedule of findings and questioned costs Schedule of prior findings and

3 BROUSSARD, POCHE, LEWIS & BREAUX, L.L.P. C E R T E D P U B L I C A C C O U N T A N T S 4112 West Congress P. O. Box Lafayette, Louisiana phone: (337) 988^930 fax: (337) Other Offices: Crowley, LA (337) Opelousas, LA (337) Abbeville, LA (337) New Iberia, LA (337) Church Point, LA (337) Herbert Lemoine II, CPA* Frank A. Stagno, CPA* Scott J. Broussard, CPA* L. Charles Abshire, CPA* P. John Blanchet III, CPA* Craig C. Babineaux, CPA* Peter C. Borrello, CPA* George J. Trappey HI, CPA* Patrick D. McCarthy, CPA* Martha B. Wyatt, CPA* Fayetta T. Dupre CPA* Mary A. Castille, CPA* Joey L. Breaux, CPA* Terrel P. Dressel, CPA* Craig J. Viator, CPA* Stacey E. Singleton, CPA* John L. Istre, CPA* Retired: Sidney L. Broussard, CPA Leon K. Poche, CPA 1984 James H. Breaux, CPA 1987 Erma R. Walton, CPA 1988 George A. Lewis, CPA* 1992 Geraldine J. Wimberley, CPA* 1995 Lawrence A. Cramer, CPA* 1999 Ralph Friend, CPA* 2002 Donald W. Kelley, CPA* 2005 INDEPENDENT AUDITORS' REPORT To the Honorable Wayne Melancon and the Board of Commissioners of the Acadia Parish Communications District Crowley, Louisiana We have audited the accompanying financial statements of the governmental act ivit i es, each maj or fund, and the aggregate remaining fund information for the Acadia Parish Communications District, a component unit of the Acadia Parish Police Jury, as of and for the year ended December 31, 2005, which collectively comprise the Acadia Parish Communications District's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Acadia Parish Communications District as of December 31, 2005, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Members of American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants *A Professional Accounting Corporation

4 In accordance with Government Auditing Standards, we have also issued our report dated September 6, 2006, on our consideration of the Acadia Parish Communications District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The District has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of the basic financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Acadia Parish Communications District's basic financial statements. The accompanying financial information listed as other supplementary information and the budgetary comparison information listed as required supplementary information in the table of contents are presented for the purposes of additional analysis and are not a required part of the basic financial statements of Acadia Parish Communications District. Such information has been subjected to the auditing procedures applied by us in the audit of the basic financial statements and, in our opinion, such information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Lafayette, Louisiana September 6, 2006 it, - 2 -

5 GOVERNMENT-WIDE FINANCIAL STATEMENTS - 3 -

6 Exhibit A ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY STATEMENT OF NET ASSETS December 31, 2005 ASSETS Cash Certificates of deposit Accounts receivable Due from other governmental agencies Prepaid expenses Bond issue costs, net of accumulated amortization of 2,824 Capital assets: Land Depreciable, net Total assets 583, ,720 71, ,485 7,563 6,389 54, , LIABILITIES AND NET ASSETS LIABILITIES Accounts payable Accrued interest payable Long-term liabilities: Portion due or payable within one year - Bonds payable Portion due or payable after one year - Bonds payable Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt service Grant expenditures Unrestricted Total net assets Total liabilities and net assets 65,008 11,344 50, , , ,303 39,913 2,264 1,601,091 2,096,571 2,722,923 See Notes to Financial Statements. 4 -

7 Exhibit B ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY STATEMENT OF ACTIVITIES For the Year Ended December 31, 2005 Net (Expense) Function/Program Governmental activities: Public safety Interest on long-term debt Total governmental activities Fees and Operating Charges for Grants and Governmental Expenses Services Contributions Activities 459, ,139 24, , ,139 9, ,931 (24,054) 9,061 84,877 General revenues: Investment earnings Miscellaneous Loss on disposal of assets Total general revenues Change in net assets Net assets, beginning Net assets, ending 21, (3,586) 18, ,940 1,993,631 2,096,571 See Notes to Financial Statements

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9 FUND FINANCIAL STATEMENTS - 7 -

10 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2005 ASSETS General Fund Wireless Technology Fund Capital Project Fund Cash Certificates of deposit Accounts receivable Due from other governmental agencies Due from other funds Prepaid expenses 174, , ,720 26,479 7,560 25,604 7, ,000 45,131 > ,925 Total assets ,527 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Due to other funds Total liabilities FUND BALANCES Reserved for: Debt service Grant expenditures Unreserved - undesignated Total fund balances Total liabilities and fund balances 39,911 9,572 15,525 ^_ 25,604 =_ 39,911 35,176 15, , , , , , , , , , ,527 See Notes to Financial Statements.

11 Exhibit C Debt Service Fund 51, Other Governmental Funds 73, , Total Governmental Funds 583, ,720 71, ,485 25,604 7, , ,008 25, ,612 51,257 51,257 51,257 2, ,402 1,601, ,402 1,654, , ,

12 Exhibit D ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2005 Total fund balances - governmental funds 1,654,612 Total net assets reported for governmental activities in the statement of net assets is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Capital assets, net Long-term liabilities, including bonds payable, are not due and payable in the current period and are therefore not reported in the governmental funds. Accrued interest payable Bonds payable Bond issue costs which are reported as expenditures in the year incurred in the governmental funds are deferred and amortized in the statement of activities. Bond issue costs, net Net assets of governmental activities 996,914 (11,344) (550,000) [561,344) 6,389 2,096,571 See Notes to Financial Statements

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14 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2005 Revenues: Charges for services Intergovernmental - Federal grant Other Investment earnings Miscellaneous General Fund 6,811 2,250 3,495 Wireless Technology Fund 277, ,635 14,852 Capital Project Fund 26 Total revenues 290, , Expenditures: Current - Public safety Debt service - Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 271, , ,739 16,782 8, , ,024 8,867 10, ,463 (8,841) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 3,775 3, ,785 (191,249) - (191,249) 128,785 Net change in fund balances Fund balances, beginning Fund balances, ending 14,441 (49,786) 119, , , , See Notes to Financial Statements

15 Exhibit E Debt Service Fund Other Gove rnmen t a1 Funds Total Governmental Funds 559, ,811 2,250 3,268 21, , ,849 50,000 23,719 73,719 (73,719) 7, ,769 50,000 23,719 33,350 7, ,838 (4,558) 65,011 62,464 62,464 (11,255) 62, , ,766 (6,517) (197,766) (3,775) -0- (8,333) 65, ,735 1,589, ,402 1,654,

16 Exhibit F ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2005 Net change in fund balances - total governmental funds 65,011 The change in net assets reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 27,043 Depreciation expense (35,193) (8,150) The net effect of various miscellaneous transactions involving capital assets, such as sales, trade-ins and donations, is to decrease net assets. (3,586) Repayment of principal on bonds payable is an expenditure in the governmental fund in the fund financial statements, but reduces the liability in the statement of net assets in the government-wide financial statements. 50,000 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds. Decrease in accrued interest payable 1,031 Governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Bond issue costs amortized (1,366) Change in net assets of governmental activities 102,940 See Notes to Financial Statements

17 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY NOTES TO FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies The financial statements of the Acadia Parish Communications District (the "District") have been prepared in conformity with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the District's accounting policies are described below. Reporting entity: The District was created pursuant to the directions of an ordinance of the Acadia Parish Police Jury and was established for the purpose of creating and maintaining an enhanced 911 emergency service. The District is governed by seven commissioners. These seven commissioners are referred to as the Board of Commissioners and are appointed by the Acadia Parish Police Jury. The Board of Commissioners is not compensated. Because the Acadia Parish Police Jury appoints the Board of Commissioners of the District and can influence the scope of public service, the District is determined to be a component unit of the Acadia Parish Police Jury, the governing body of the parish and the governmental entity with oversight responsibility. The accompanying financial statements present information only on the funds maintained by the District and do not present information on the Acadia Parish Police Jury, the general government services provided by that governmental ent i ty, or the other governmental enti t ies that comprise the financial reporting entity. Basis of presentation: The District's financial statements consist of the government-wide statements and the fund financial statements. The statements are prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental units. Government-wide financial statements - The government-wide financial statements include the statement of net assets and statement of activities of the District. The effect of interfund activity has been removed from these statements. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange transactions; however, the District's activities are mainly financed by service charges collected from phone and communication companies

18 NOTES TO FINANCIAL STATEMENTS In the government-wide statement of net assets, the governmental activities are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The District's net assets are reported in three parts - invested in capital assets, net of related debt, restricted net assets, and unrestricted net assets. The District first utilizes restricted resources to finance qualifying activities. The government-wide statement of activities reports both the gross and net cost of each of the District's functions. The functions are also supported by general government revenues (intergovernmental revenues, interest income, etc.). The statement of activities reduces gross expenses (including depreciation) by related program revenues and operating grants. Program revenues must be directly associated with the function. Operating grants include operating-specific and discretionary (either operating or capital) grants. The net cost (by function) is normally covered by general revenue (intergovernmental revenues, interest income, etc.). The government-wide focus is more on the sustainability of the District as an entity and the change in the District's net assets resulting from the current year's activities. Fund financial statements - The fund financial statements provide information about the District's funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The District reports the following major governmental funds: General Fund - This is the general operating fund of the District and accounts for all financial resources except those required to be accounted for in another fund. Wireless Technology Fund - This fund is used to account for the proceeds and disbursements of revenues received by collection of service charges from cellular and two-way telecommunication service subscribers. Capital Project Fund - Revenues of this fund are derived from bond proceeds and interfund transfers to fund the renovations to the District's building. Debt Service Fund - This fund is used to account for the accumulation of money to service the bonds outstanding

19 NOTES TO FINANCIAL STATEMENTS Basis of accounting: Government-wide financial statements - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Nonexchange transactions, in which the District gives {or receives) value without directly receiving (or giving) equal value in exchange, include grants, entitlements and donations. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Governmental fund financial statements - Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. "Measurable" means the amount of the transaction can be determined and ^available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. All receivables collected within 60 days after year end are considered available and recognized as revenue of the current year. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt which are recognized to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt are reported as other financing sources. Budgets and budgetary accounting: Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all of the District's funds. All annual appropriations lapse at fiscal year end. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Interfund receivables and payables: Short-term cash borrowings between funds are considered temporary in nature. During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These amounts are reported as Mue from other funds" or "due to other funds" on the balance sheet and are eliminated in the statement of net assets

20 NOTES TO FINANCIAL STATEMENTS Interfund transfers: Permanent reallocation of resources between funds are classified as interfund transfers. For purposes of the statement of activities, all interfund transfers have been eliminated. Compensated absences: The District does not have a formal policy on vacation and sick leave. Accordingly, no liability has been recorded in the financial statements. Fixed assets: The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are reported in the government-wide or fund financial statements. Government-wide financial statements - The District's capital assets with useful lives of more than one year are stated at historical costs and comprehensively reported in the government-wide financial statements. The District maintains a threshold level of 500 for capitalizing assets. The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. The range of estimated useful lives by type of assets is as follows: Years Buildings and improvements Equipment 5-20 Fund financial statements - In the fund financial statements, fixed assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Long-term debt: The accounting treatment of long-term debt depends on whether the debt is reported in the government-wide or fund financial statements. Government-wide financial statements - In the government-wide financial statements, outstanding debt is reported as liabilities and bond issuance costs are capitalized

21 NOTES TO FINANCIAL STATEMENTS Fund financial statements - The governmental fund financial statements recognize the proceeds of debt as other financing sources of the current period. For fund reporting, bond premiums and discounts, as well as issuance costs, are recognized in the period the bonds are issued. Issuance costs, even if withheld from the actual net bond proceeds received, are reported as debt service expenditures. Equity classifications: Government-wide financial statements - Equity is classified as net assets and displayed in three components: 1. Invested in capital assets, net of related debt - Consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes, certificates of indebtedness, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. 2. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, and (2) law through constitutional provisions or enabling legislation. 3. Unrestricted net assets - All other net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted." Fund financial statements - Governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Investments: State statutes authorize the District to invest in United States bonds, treasury notes, or certificates and time deposits of state banks having their principal office in the State of Louisiana. The District's investments at December 31, 2005 consisted of time certificates of deposit purchased from local financial institutions. These certificates are not subject to GASB Statement No. 31 requirements; thus they are stated at cost

22 NOTES TO FINANCIAL STATEMENTS Custodial credit risk: The District is exposed to custodial credit risk as it relates to their deposits with financial institutions. The District's policy to ensure there is no exposure to this risk is to require each financial institution to pledge their own securities to cover any amount in excess of Federal Depository Insurance Coverage. These securities must be held in the District's name. Accordingly, the District had no custodial credit risk related to its deposits at December 31, Note 2. Defined Benefit Pension Plan Plan description: The Parochial Employee Retirement System of Louisiana (the w System") is a cost-sharing multiple-employer, public employee retirement system (PERS) as established and provided for by R. S. 11:1731 of the Louisiana Revised Statutes (LRS). The System is composed of two distinct plans, Plan A and Plan B, with separate assets and benefit provisions. Employees of the District are members of Plan A. The System is controlled and administered by a separate Board of Trustees. All permanent employees working at least 28 hours per week and all elected parish officials are eligible to participate in the System. Under Plan A, employees who retire at or after age 60 with at least 10 years of credited service, at or after age 55 with 25 years of credited service, or at any age with at least 30 years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 3 percent of their final average compensation multiplied by the employee's years of credited service. Final compensation is the employee's monthly earnings during the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of credited service stated previously and who do not withdraw their employee contributions, may retire at the ages specified previously and receive the benefit accrued to their date of termination. The System also provides death and disability benefits. Benefits are established by state statute. The Parochial Employees Retirement System of Louisiana issues a publicly available financial report that includes financial statements and required supplemental information. That report may be obtained by writing to Parochial Employees' Retirement System of Louisiana, Post Office Box 14619, Baton Rouge, Louisiana Funding policy: Plan members are required to contribute 9.50% of their annual covered salary and the District is required to contribute at an actuarially determined rate. The current rate is 12.75% of annual covered payroll. The contribution requirements of plan members and the District are established and may be amended by the System's Board of Trustees. The

23 NOTES TO FINANCIAL STATEMENTS District's contributions to the System for the years ended December 31, 2005, 2004 and 2003 were 3,736, 3,193 and 2,006, respectively, equal to the reouired required contribution for each year. Note 3. Capital Assets and Depreciation Capital assets activity for the year ended December 31, 2005 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated - Land 54, ,000 Capital assets being depreciated - Buildings and improvements 953,074 25,611 (2,522) 976,163 Equipment 221,738 1,432 (132,268) 90,902 Total capital assets being depreciated 1,174,812 27,043 (134,790) 1,067,065 Less accumulated depreciation for - Buildings and improvements (33,663) (24,933) 1,303 (57,293) Equipment (186,499) (10,260) 129,901 (66,858) Total accumulated depreciation (220,162) (35,193) 131,204 (124,151) Total capital assets being depreciated, net 954,650 (8,150) (3,586) 942,914 Governmental activities capital assets, net (8,150) 5 (3.586) S Depreciation expense for the year ended December 31, 2005 was charged as follows: Public safety 35,

24 NOTES TO FINANCIAL STATEMENTS Note 4. Interfund Balances Interfund balances at December 31, 2005 consist of the following: Due From: Wireless Technology Fund Due To: General Fund 25,604 These balances resulted from the time lag between the dates that (1) interfund goods or services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Note 5. Interfund Transfers Interfund transfers for the year ended December 31, 2005 consist of the following: Transfers To: General Fund Capital Project Fund Debt Service Fund Other Governmental Funds Wireless Technology Fund Transfers From: - 128,785 62,464 Other Governmental Funds 3,775 2,742 Total 3, ,785 62,464 2, _ 6, Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund required, and (3) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Note 6. Operating Leases The District has a number of operating leases in effect at year end. These leases cover the use of various pieces of equipment and are in excess of one year. However, they are cancelable. The total rental expense for all leases for the year ended December 31, 2005 was 45,

25 NOTES TO FINANCIAL STATEMENTS Note 7. Grant In January 1995, the District received a grant in the amount of 9,500 through the Acadia Parish Police Jury from the Department of Federal Emergency Management As s i s tance whi ch was pas s ed through the Loui s iana Department of Military Affairs. This grant was for an amateur radio program to be used as a replacement in case of emergencies. During 2005, the District had no expenditures in connection with this grant, leaving a balance of 2,264 which is reserved for future expenditures. Note 8. Wireless E911 Service Status During 2005, the District received 281,635 from wireless service charges to be used in the implementation of wireless E911 service. In addition, the District incurred 16,425 of expenditures in the implementation of wireless E911 service during As of December 31, 2005, all four companies are in Phase I status. Note 9. Long-Term Debt Long-term debt of the District is comprised of the following at December 31, 2005: Balance Outstanding Emergency Management Center Bonds, Series 2004, dated January 1, 2004, due in annual installments, interest rate 4.125%, final maturity January 1, S The annual debt service requirements to maturity of bonds payable at December 31, 2005 is as follows: Year Ending December 31, Principal Interest Total ,000 21,656 71, ,000 19,491 74, ,000 17,222 72, ,000 14,953 69, ,000 12,581 72, ,000 23, , ,

26 NOTES TO FINANCIAL STATEMENTS Interest costs incurred and expensed for the year ended December 31, 2005 totaled 24,054. This amount relates to governmental activities and is reported as a separate line item in the statement of activities. The following is a summary of changes in long-term debt for the year ended December 31, 2005: Due Beginning Ending Within Balance Additions Deductions Balance One Year Governmental activities: Emergency Management Center Bonds, Series , S (50,000) Note 10. Due From Other Governmental Agencies Amounts due from other governmental agencies at December 31, 2005 consist of the following: State of Louisiana: FEMA grant 332,735 Louisiana Sheriff's Association: Reimbursements of costs 750 Note 11. Risk Management The District is exposed to various risks of loss related to torts; theft of damage to, and destruction of assets; errors and omissions; and natural disasters. The District purchases commercial insurance to cover any claims related to these risks

27 REQUIRED SUPPLEMENTARY INFORMATION

28 Exhibit G-l ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended December 31, 2005 Revenues: Charges for services Intergovernmental Investment earnings Miscellaneous Total revenues Original Budget 281/ 150 1, 800 3, 000 3, / 750 Final Budget 252, 352 1, 800 2, 900 5, , 734 Actual 277, 504 9, 061 3, , 068 Variance With Final Budget Positive (Negative) 25,152 7, (5,674) 27/334 Expenditures: Current - Public safety: Personnel costs E911 line usage Administration fees Communications Contract services Pager expense Copier expense Insurance Office supplies Utilities Professional fees Training, dues/ and subscriptions Postage/ printing, and publishing Public relations and recognition Repairs and maintenance Transportation Other Capital outlay Total expenditures 52, , 000-4/ , , 750 1, , 000 4, , 000 5, 000 2, 000 1, 500 2, 000 5, 000 3, 000 7, , , , 770-4, , , 441 1, , 125 4, , 500 6, , 625 4, 250 2, 511 2, 756 5, , , , 319 2, 505 4, , , 435 1, , 647 5, , 836 6, , 615 5, 651 2, , , ,451 (2,505) 255 9,689 6 (130) (522) (1,118) (1,401) (339) 2,556 (1,871) 7/025 (continued)

29 Exhibit G-l (continued) ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY BUDGETARY COMPARISON SCHEDULE GENERAL FUND (CONTINUED) For the Year Ended December 31, 2005 Excess (deficiency) of revenues over expenditures Original Budget Final Budget Actual (10,939) (23,693) 10,666 Variance With Final Budget Positive (Negative) 34,359 Other financing sources: Transfers in Net change in fund balance (10,939) (23,693) 3,775 14,441 3,775 38,134 Fund balance, beginning 27,935 27, , ,822 Fund balance, ending 16,996 4, See Notes to Budgetary Comparison Schedules

30 Exhibit G-2 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY BUDGETARY COMPARISON SCHEDULE WIRELESS TECHNOLOGY FUND For the Year Ended December 31, 2005 Revenues: Charges for services Intergovernmental Investment earnings Original Budget 227, ,000 12,000 Final Budget 272,180 12,620 Actual 281,635 14,852 Variance With Final Budget Positive (Negative) 9,455 2,232 Total revenues 559, , ,487 11,687 Expenditures: Current - Public safety: Administrative fees Wireless - Phase I Professional fees 911 equipment lease Recorder lease Radio console equipment lease 911 line service Capital outlay Total expenditures - 30, 000 5, , , , , , , , 600 6, , , , , , 432 2, , , , , , , 024 (2,891) 2,175 6,000 (27,986) (550) - (340) - (23,592) Excess (deficiency) of revenue over expenditures 287, , , 463 (11,905) Other financing uses: Transfers out Net change in fund balance (72, 688) 214, 454 (201, 488) (48, 120) (191, 249) (49, 786) 10,239 (1,666) Fund balance, beginning 123, , , ,704 Fund balance, ending 5 338, , See Notes to Budgetary Comparison Schedules

31 Exhibit G-3 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY NOTES TO BUDGETARY COMPARISON SCHEDULES Note 1. Budgets and Budgetary Accounting The Acadia Parish Communications District uses the following procedures in establishing the budgetary data reflected in the financial statements: 1. The Board prepares a proposed operating budget for the fiscal year commencing January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 3. The budget is employed as a management control device during the year that assists its users in financial activity analysis. All budget appropriations lapse at year-end. The budgets presented are the originally adopted budget and the final budget. Note 2. Excess of Expenditures Over Appropriations The following individual fund had actual expenditures in excess of budgeted expenditures for the year ended December 31, 2005: Original Final Budget Budget Actual Excess Wireless Technology Fund S ,024 5 (23.592)

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33 OTHER SUPPLEMENTARY INFORMATION 31 -

34 Exhibit H-l ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2005 ASSETS Training and Equipment Fund Road Identification Fund Total Cash Certificates of deposit 21, ,000 51,530 10,000 73, ,000 Total assets 121,872 S 61, ,402 FUND BALANCES Unreserved - undesignated

35 Exhibit H-2 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2005 Revenues: Investment earnings Training and Road Equipment Identification Fund Fund 2, Total 3,268 Expenditures: Current - Public safety 3,419 4,407 7,826 Excess (deficiency) of revenues over expenditures (742) (3,816) (4,558) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances (6,517) (6,517) (7,259) 2,742 2,742 (1,074) 2,742 (6,517) (3,775) (8,333) Fund balances, beginning Fund balances, ending 129, ,872 62,604 61, , ,

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37 BROUSSARD^POCHE, LEWIS & BREAUX, L.L.P. C E R T E D P U B L I C A C C O U N T A N T S 4112 West Congress P. 0. Box Lafayette, Louisiana phone: (337) fax: (337) www. bplb. com Other Offices: Crowley, LA (337) Opelousas, LA (337) Abbeville, LA (337) New Iberia, LA (337) Church Point, LA (337) Herbert Lemoine II, CPA* Frank A. Stagno, CPA* Scott J. Broussard, CPA* L. Charles Abshire, CPA* P. John Blanchet HI, CPA* Craig C. Babineaux, CPA* Peter C. Borrello, CPA* George J. Trappey III, CPA* Patrick D. McCarthy, CPA* Martha B. Wyatt, CPA* Fayetta T. Dupre CPA* Mary A. Castille, CPA* Joey L. Breaux, CPA* Terrel P. Dressel, CPA* Craig J. Viator, CPA* Stacey E. Singleton, CPA* John L. Istre, CPA* Retired: Sidney L. Broussard, CPA Leon K. Poche, CPA 1984 James H. Breaux, CPA 1987 Erma R. Walton, CPA 1988 George A. Lewis, CPA* 1992 Geraldine J. Whnberley, CPA* 1995 Lawrence A. Cramer, CPA* 1999 Ralph Friend, CPA* 2002 Donald W. Kelley, CPA* 2005 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Wayne Melancon and the Board of Commissioners of the Acadia Parish Communications District Crowley, Louisiana We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Acadia Parish Communications District, a component unit of the Acadia Parish Police Jury, as of and for the year ended December 31, 2005, which collectively comprise the District's basic financial statements, and have issued our report thereon dated September 6, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the District's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. The reportable condition is described in the accompanying schedule of findings and questioned costs as item # Members of American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants *A Professional Accounting Corporation

38 A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items # and # This report is intended for the information of management, federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. Lafayette, Louisiana September 6,

39 Schedule 1-1 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2005 We have audited the basic financial statements of Acadia Parish Communications District as of and for the year ended December 31, 2005, and have issued our report thereon dated September 6, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our audit of the financial statements as of December 31, 2005 resulted in unqualified opinions. Section I. Summary of Auditors' Reports a. Report on Internal Control and Compliance Material to the Financial Statements Internal Control Material Weaknesses Rl Yes ~1 No Reportable Conditions [^ Yes ~ No Compliance Compliance Material to Financial Statements Rl Yes [""I No Section II. Financial Statement Findings # Segregation of Duties Finding: Due to the size of the District, an adequate segregation of duties does not exist in the administration office. A system of internal control procedures contemplates a segregation of duties so that no one individual handles a transaction from its inception to its completion. While we recognize that the District may not be large enough to permit an adequate segregation of duties for an effective system of internal control procedures, it is important that you be aware of this condition. Recommendation: Keeping in mind the limited number of employees to which duties can be assigned, the District should monitor assignment of duties to assure as much segregation of duties and responsibility as possible. # Audit Submission Finding: State law requires audited financial statements to be completed and submitted within six months after fiscal year end. The District's financial report was not complete until after June 30, 2006, the deadline imposed by State law. Recommendation: Procedures should be established to ensure that information needed for the audit is available in a timely manner to ensure completion of the audit by the deadline

40 # Budget Violation Finding: For the year ended December 31, 2005, actual expenditures exceeded budgeted expenditures in the Wireless Technology Fund by 18%. This is a violation of the Louisiana Local Government Budget Act. Recommendation: The budget should be reviewed periodically during the year, and amended as necessary, to ensure compliance

41 Schedule 1-2 ACADIA PARISH COMMUNICATIONS DISTRICT ACADIA PARISH POLICE JURY SCHEDULE OF PRIOR FINDINGS Year Ended December 31, 2005 Section I. Internal Control and Compliance Material to the Financial Statements # Segregation of Duties Recommendation: Keeping in mind the limited number of employees to which duties can be assigned, the District should monitor assignment of duties to assure as much segregation of duties and responsibility as possible. Current Status: This finding is repeated in the current year's schedule of findings and questioned costs as finding # # Audit Submission Recommendations: In the future, the audit report should be completed by the deadline imposed by State law. Current Status: This finding is repeated in the current year's schedule of findings and questioned costs as finding # Section II. Internal Control and Compliance Material to Federal Awards Not applicable. Section III. Management Letter The prior year's report did not include a management letter

42 f ACADIA PARISH COMMUNICATIONS DISTRICT ENHANCED 911 POST OFFICE BOX 1273 CROWLEYLA / ?'FAX October 12, 2006 Mr. Steve Theriot Legislative Auditor State of Louisiana Post Office Box Baton Rouge, LA Acadia Parish Communications District respectfully submits the following corrective action plan for the year ended December 31, Name and address of independent public accounting firm: Broussard, Poche', Lewis & Breaux, L.L.P. Certified Public Accountants Post Office Box Lafayette, Louisiana Audit period: January 31, 2005 through December 31, The findings from the 2005 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Auditors' Results, does not include findings and is not addressed. Section II - Financial Statement Findings # Segregation of Duties Recommendation: Keeping in mind the limited number of employees to which duties can be assigned, the District should monitor assignment of duties to assure as much segregation of duties and responsibility as possible. Action Taken: Due to the size of the District, we are unable to segregate duties. The District monitors assignments of duties and also has procedure that two signatures are needed for all checks written. # Audit Submission Recommendation: Procedures should be established to ensure that information needed for the audit is available in a timely manner to ensure completion of the audit by the deadline.

43 Action Taken: Due to change in auditor and procedures with auditing firm, information needed was not discussed in a timely manner. A new accounting program has been purchased so that the auditor will be able to access needed information more easily. # Budget Violation Recommendation: The budget should be reviewed periodically during the year, and amended as necessary, to ensure compliance. Action Taken: The District will periodically review the budget and amend it as necessary. If the Legislative Auditor has questions regarding this plan, please call Ms, Mary T. Richard at (337) Sincerely yours, ACADIA PARISH COMMUNICATIONS DISTRICT Wayne Melancon Chairman