VILLAGE OF LISBON Lisbon, Louisiana. Annual Financial Statements. As of and for the Year Ended December 31,2010

Transcription

1 a^c VILLAGE OF LISBON Annual Financial Statements As f and fr the Year Ended December 31,2010 Under prvisins f state law, this reprt is a public dcument. Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public inspectin at the Batn Ruge ffice fthe Legislative Auditr and, where apprpriate, at the ffice f the parish cierk f curt. Release Date 4 HlJlllU

2 Annual Financial Statements As f and fr the Year Ended December 31, 2010 CONTENTS Statement Page N. Accuntant's Cmpilatin Reprt 3 Basic Financial Statements: Gvernment-Wide Financial Statements: Statement f Net Assets Statement f Activities A B Fund Financial Statements: Gvemmental Fund: Balance Sheet Statement f Revenues, Expenditures and Changes in Fund Balances Business-Type Activities: Statement f Net Assets Statement f Revenues, Expenses, and Changes in Net Assets Statement f Cash Flws Ntes t the Financial Statements D F G

3 Annual Financial Statements As f and fr the Year Ended December 31, 2010 CONTENTS (Cntd.) Scliedule Page N. Required Supplemental Infrmatin: Schedule f Revenues, Expenditures, and Changes in Fund Balance - Budget and And Actual - General Fund 21 Other Supplemental Infrmatin: Schedule f Per Diem Paid Aldermen Status f Prir Year Findings Current Year Findings and Crrective Actin Plan

4 M. CARLEEN DUMAS Certified Public Accuntant 369 Dnaldsn Rad. Calhun, Luisiana. Telephne 31S/ Accuntant's Cmpilatin Reprt MAYOR AND BOARD OF ALDERMEN VILLAGE OF LISBON I have cmpiled the accmpanyingfinancialstatements fthe gvemmental activities, the business-type activities and majr fimd fthe Village f Lisbn (the "Village") as f and fr the year ended December 31, 2010, which cllectively cmprise the Village's basicfinancialstatements as listed in the table f cntents. 1 have nt audited r reviewed the accmpanyingfinancialstatements and, accrdingly, d nt express an pinin r prvide any assurance abut whether thefinancialstatements are in accrdance with accunting principles generally accepted in the United States f America The management f the Village is respnsible fr the preparatin and fair presentatin f the fmancial statements in accrdance with accunting principles generally accepted in the United States f America and fr designing, implementing, and maintaining intemal cntrl relevant t the preparatin and fair presentatin fthefinancialstatements. My respnsibihty is t cnduct the cmpilatin in accrdance with Statements n Standards fr Accunting and Review Services issued by the American Institute f Certified Public Accuntants. The bjective f a cmpilatin is t assist the management fthe Village in presentingfinancialinfrmatin in the frm f financial statements withut undertaking t btain r prvide any assurance that there are n material mdificatins that shuld be made t thefinancialstatements. The budgetary cmparisn infrmatin n page 21, is nt a required part fthe basicfinancialstatements but is supplementary infrmatin required by the Gvemmental Accunting Standards Bard. The schedule f per diem paid aldermen, status f prir yearfindings,and current yearfindingsand crrective actin plan n pages 24 thrugh 26, are nt a required part fthe basicfinancialstatements but are supplementary infmiatin required by the Luisiana Gvemmental Audit Guide. I have cnq)iled the supplementary infrmatin frm infrmatin that is the representatin f management, withut audit r review. Accrdingly, I d nt express an pinin r prvide any assurance n the supplementary infrmatin. Member fthe American Institute f Certified Public Accuntants Member fthe Sciety f Luisiana f Certified Public Accuntants -3-

5 MAYOR AND BOARD OF ALDERMEN VILLAGE OF LISBON Management has nt presented the Management's Discussin and Analysis infmiatin that the Gvemmental Accunting Standards Bard has determined is required t supplement, althugh nt required t be a part f; the basicfinancialstatements. /s Carleen Dumas Calhun, Luisiana Febmary 4,

6 BASIC FINANCIAL STATEMENTS -5-

7 Statement A VILLAGE OF LISBON STATEMENT OF NET ASSETS December 31, 2010 ASSETS Cash Investments Receivables (net f allwances fr uncuectibles) Other assets Capital assets (net) GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTivrrres $8,705 62,078 12,175 $38,247 2, ,852 TOTAL $46,952 62,078 2, ,027 TOTAL ASSETS 82,958 50, ,136 LIABILITIES Custmer depsits 10,040 10,040 NET ASSETS Invested in capital assets Unrestricted 12,175 70,783 9,852 30,286 22, ,069 TOTAL NET ASSETS $ $ $ See accmpanying ntes and accuntant's cmpilatin reprt. -6-

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9 Statement C BALANCE SHEET - GOVERNMENTAL FUND December 31, 2010 GENERAL FUl^fD ASSETS Cash Investments TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Fund balance - unreserved TOTAL LIABILITIES AND FUND BALANCES Recncihatin fthe Balance Sheet f Gvemmental Fund T the Statement f Net Assets: Fund balance - unreserved - General Fund Amunt reprted fr net assets f gvemmental activities in the Statement f Net Assets (Statement A) is different because: Capital assets used in gvemmental activities are nt financial resurces and therefre are nt reprted in the fimd Net assets f gvemmental activities (Statement A) $8,705 62,078 $ ,783 $70,783 $70,783 12,175 $82,958 See accn:q)anying ntes and accuntant's cmpilatin reprt. -8-

10 statement D STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND Fr the Year Ended December 31,2010 GENERAL FUND REVENUES Franchise taxes Licenses and permits Rent Ryalties Investment earnings Ttal revenues EXPENDITURES General gvemment: Current: Persnal services Operating services Materials and supplies Ttal expenditures NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Recnciliatin fthe Statement f Revenues, Expenditures, and Clianges in Fund Balance f Gvernmental Fund t the Statement f Activities: Net change in fimd balance - General Fund Amunt reprted fr gvemmental activities in the Statement f Activities (Statement B) are different because; Gvemmental funds reprt capital utlays as expenditures. Hwever, in the statement f activities, the cst f thse assets is allcated ver their estimated useful lives as depreciatin expense. This is the amunt by which depreciatin expense exceeded capital utlays in the current perid. Change in net assets f gvemmental activities (Statement B) $3,079 4,971 2, ,089 1,723 9, , ,669 $ $114 ri,862) ($1.748^ See accn^anying ntes and accuntant's cnq)ilatin reprt. -9-

11 Statement E STATEMENT OF NET ASSETS - BUSINESS-TYPE ACTIVITIES December 31, 2010 ASSETS Current assets: Cash Accunts receivable (net f allwance fr dubtful accunts) Other Ttal current assets Nncurrent assets: Capital assets (net f accumulated depreciatin) Ttal assets LIABILITIES Current liabilities - custmer depsits NET ASSETS Invested in capital assets Unrestricted Ttal net assets Water Enterprise Fund $38,247 2, ,326 9,852 50,178 10,040 9,852 30,286 $40,138 See accnpanying ntes and accuntant's cmpilatin reprt. -10-

12 Statement F STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUSINESS-TYPE ACTIVITIES Fr the Year Ended December 31, 2010 OPERATING REVENUES Water sales OPERATING EXPENSES Office expense Pstage Maintenance and repairs Utilities Materials and supplies Insurance Salaries and payrll taxes Cntract labr Dues and subscriptins Telephne Fuel Depreciatin Other perating expenses Ttal perating expenses OPERATING INCOME NON-OPERATING REVENUES Interest eamed n depsits Sale f capital asset Ttal nn-perating revenues CHANGE IN NET ASSETS NET ASSETS - BEGINNING NET ASSETS - ENDING Water Enterprise Fund $38, ,476 1,769 2,362 20, ,977 32,788 6, ,001 2,015 8,029 32,109 $ See accnpanying ntes and accimtant's cmpilatin reprt. -11-

13 Statement G STATEMENT OF CASH FLOWS - BUSINESS-TYPE ACTIVITIES Fr the Year Ended December 31, 2010 Water Enterprise Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts frm custmers Custmer depsit receipts, net Payments t suppliers Payments t en^lyees Net cash prvided by perating activities CASH FLOWS FROM CAPITAL HNANCING ACTTVITIES Sale f capital assets CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings n bank depsits NET INCREASE IN CASH CASH AT BEGINNING OF YEAR CASH AT END OF YEAR Recnciliatin f Operating Incme t Net Cash Prvided by Operating Activities Operating Incme Adjustments: Depreciatin Decrease in accunts receivable Decrease in custmer dq)sits Ttal adjustments Net cash prvided by piating activities $39,148 (943) (11,651) g. 160) 6,394 2,001 \± 8,409 29,838 $ $ (943) 380 S6.394 See accimtant's cn:q)ilatin reprt and accn:5)anying ntes. -12-

14 Ntes t the Financial Statements As f and fr the Year Ended December 31, 2010 INTRODUCTION The Village f Lisbn was incrprated under the prvisins fthe Lawrasn Act. The village is gvemed by the mayr-bard f aldermen frm f gvemment. The mayr and three aldermen serve furyear terms which expire n December 31, The village has three part-time emplyees. GASB Statement N. 14, The Reprting Entity, estabhshed criteria fr determining the gvemmental reprting entity and cmpnent units that shuld be included within the reprting entity. Under prvisins f this Statement, the Village f Lisbn is cnsidered a primary gvemment, since it is a special purpse gvemment that has a separately elected gveming bdy, is legally separate, and isfiscallyindependent f ther state and lcal gvemments. As used in GASB Statement N. 14,fiscallyindependent means that the municipality may, withut the apprval r cnsent f anther gvemmental entity, determine r mdify its wn budget, levy its wn taxes r set rates r charges, and issue bnded debt. The village has n cn:q)nent units. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Gvemment-Wide and Fund Financial Statements The gvemment-widefinancialstatements (i.e., the statement f net assets and the statement f activities) reprt infrmatin n all fthe activities fthe Village f Lisbn. Gvemmental activities, which nrmally are supprted by taxes and intergvemmental revenues, are reprted separately frm business-type activities, which rely t a significant extent n fees and charges fr supprt. The statement f activities demnstrates the degree t which the direct expenses f a given fimctin r segment are ffeet by prgram revenues. Direct expenses are thse that are clearly identifiable with a specific fimctin r segment. Prgram revenues include 1) charges t custmers r applicants wh purchase, use, r directly benefit frm gds, services, r privileges prvided by a given fimctin r segment and 2) grants and cntributins that are restricted t meeting the peratinal r capital requirements f a particular fimctin r segment. Taxes, licenses, and ther items nt prperly included amng prgram revenues are reprted instead as general revenues. See accimtant's cmpilatin reprt. -13-

15 Ntes t the Financial Statements Separate financial statements are prvided fr gvemmental funds and business-type activities fimds. All individual gvemmental fim^s and individual enterprise funds are reprted as separate clumns in the fimdfinancialstatements. B. Measurement Fcus, Basis f Accunting, and Financial Statement Presentatin The gvemment-widefinancialstatements are reprted using the ecnmic resiuces measurement fcus and the accmal basis f accunting, as are the business-type fimd financial statements. Revenues are recrded when eamed and expenses are recrded when a liability is incurred, regardless f the timing f related cash flws. Grants and similar items are recgnized as revenue as sn as all eligibility requirements impsed by the prvider have been met. Gvemmental fund financial statements are reprted using the current financial resurces measurement fcus and the mdified accmal basis f accunting. Revenues are recgnized as sn as they are bth measurable and available. Revenues are cnsidered t be available when they are cllectible within the current perid r sn enugh thereafter t pay liabilities fthe current perid. Fr this purpse, revenues are cnsidered t be available if they are cllected within 60 days fthe end fthe current fiscal perid. Expenditures generally are recrded when a habihty is incurred, as under accmal accunting. Franchise taxes, hcenses and permits, and interest assciated with the current fiscal perid are all cnsidered t be susceptible t accmal and s have been recgnized as revenues fthe current fiscal perid. All ther revenue items are cnsidered t be measurable and available nly when cash is received by the village. The Village f Lisbn reprts the fllwing gvemmental fimd: General Fund The General fund is the general perating fund fthe village and accunts fr all financial resurces f the general gvernment. The Village f Lisbn reprts the fllwing business-type activity fund; Water System Enterprise Fund The Water System Enterprise fimd accimts fr the peratins fthe village water system. See accuntant's cmpilatin reprt. -14-

16 Ntes t the Financial Statements Private-sectr standards f accunting and financial reprting issued prir t December 1,1989, generally are fllwed in the gvemment-wide and business-type activities fimdfinancialstatements t the extent that thse standards d nt cnfuct with r cntradict guidance fthe Gvemmental Accunting Standards Bard. Gvemments als have the ptin f fllwing subsequent private-sectr guidance fr their business-type activities and enterprise fiinds, subject t the same limitatin. The village has elected nt t fllw subsequent private-sectr guidance. Amunts reprted as prgram revenues include charges t custmers fr gds, services, r privileges prvided and perating grants. General revenues include fi-anchise taxes, ccupatinal licenses, investment incme, and ther miscellaneus revenues. Business-type activities fiinds distinguish perating revenues and expenses frm nnperating items. Operating revenues and expenses generally resuh frm prviding services and prducing and dehvering gds in cnnectin with the fimd's nging peratins. The Water System Enterprise Fund's perating revenues cnsist f charges fr water sales. Operating expenses fr enterprise fimds include the cst f services, administrative expenses, and depreciatin n capital assets. All revenues and expenses nt meeting these definitins are reprted as nnperating revenues and expenses. C. Depsits and Investments Cash inchides amunts in interest-bearing demand depsits. State law allws the, village t invest m cllateralized certificates f depsits, gvernment-backed securities, cmmercial paper, the state spnsred investment pl, and mutual fimds cnsisting slely f gvernment-backed securities. If the riginal maturities f mvestments exceed 90 days, they are classified as investments; hwever, if the riginal maturities are 90 days r less, they are classified as cash equivalents. At December 31, 2010, the village's investments cnsist f nnnegtiable certificates f depsits with riginal maturities that exceed 90 days that are reprted in the accmpanyingfinancialstatements at cst. D. Receivables All receivables are generally shwn net f an allwance fr uncllectible amunts. These statements cntain n prvisin fr uncllectible accunts. The village is f the pinin that such an allwance wuld be immaterial in relatin t thefinancialstatements taken as a whle. E. Capital Assets See accimtant's cmpilatin reprt. As a general mle, the effect f interfimd activity is eliminatedfrmthe gvemmentwidefinancialstatements. -15-

17 Ntes t the Financial Statements Capital assets, which include the riginal water system and in^rvements, land, buildings, and equipment are reprted in the apphcable gvemmental r business-type activities clumns in the gvemment-widefinancialstatements. Capital assets are capitahzed at histrical cst r estimated cst. Apprximately 98 percent fthe village's capital assets have been capitahzed at cst and the remaining 2 percent have been capitahzed at estimated cst based n the histrical cst f similar assets. The Village f Lisbn maintains a threshld level f $1,000 r mre fr capitahzing capital assets. The csts f nrmal maintenance and repairs that d nt add t the value fthe asset r materially extend the asset's life are nt capitalized. All capital assets, ther than land, are depreciated using the straight-line methd ver the fllwing usefiil hves: Estimated Lives Infrastmcture - water system and iit^rvements Buildings Equipment 25 years 40 years 5-15 years F. Fund Equity In the fiind financial statements, gvemmental funds reprt reservatins f fimd balance fr amunts that are nt available fr apprpriatin r are legally restricted by utside parties fr a specific purpse. Designatins f fimd balance represent tentative management plans that are subject t change. At December 31, 2010, the village's gvemmental fimd balance was unreserved and undesignated. G. Estimates The preparatin f financial statements in cnfrmity with accunting principles generally accepted in the United States f America requires management t make estimates and assumptins that affect certain reprted amunts f assets and Uabilities, disclsures, and revenues, expenditures, and expenses during the reprting perid. Actual results culd differ frm thse estimates. 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY See accuntant's cmpilatin reprt. -16-

18 Ntes t the Financial Statements Budget Infrmatin The Village f Lisbn uses the fllwing budget practices: The prpsed budget fr the General Fund, prepared n the mdified accmal basis f accunting, is frmally adpted by the mayr and bard f aldermen at the December bard meeting each year. The budget is established and cntrlled by the mayr and bard f aldermen at the bject level f expenditure. Apprpriatins lapse at year-end and must be reapprpriated fr the fllwing year t be expended. Encumbrance accunting is nt utilized by the village. Budgeted amunts included in the accmpanyingfinancialstatement include the riginal adpted budget. There were n budget amendments during the year ended December 31, DEPOSITS IN FINANCIAL INSTITUTIONS At December 31, 2010, the village has cash and investments (bk balances) as fllws: Interest bearing checking accunts $46,952 Investments - certificates f depsit 62,078 Ttal 5: These depsits are stated at cst, which apprximates market. Under state law, these depsits, r the resulting bank balances, must be secured by federal depsit insurance r the pledge f securities wned by thefiscalagent bank. The market vahie fthe pledged securities plus the federal depsit insurance must at all times equal the amunt n depsit with thefiscalagent. These securities are held in the name fthe pledgingfiscalagent bank in a hlding r custdial bank that is mutually acceptable t bth parties. At December 31, 2010, the Village f Lisbn had $109,074 in depsits (cllected bank balances). These depsits are fiilly secured frm risk by federal depsit insurance. 4. RECEIVABLES The fllwing is a summary f receivables at December 31,2010: General Fund Water Enterprise Fund Ttal Accunts Allwance fr dubtfiil accunts $2,069 $2,069 Ttal $2,069 $2,069 See accuntant's cmpilatin reprt. -17-

19 Ntes t the Financial Statements 5. CAPITAL ASSETS Capital assets and depreciatin activity as f and fr the year ended December 31,2010, is as fllws: Gvernmental activities: Capital assets nt being depreciated - land Capital assets being depreciated: Buildings Equipment Ttal capital assets being depreciated Less accumulated depreciatin fr: Buildings Equipment Ttal accumulated depreciatin Ttal assets being depreciated, net Ttal capital assets (net) Balance at January 1, 2010 $1,000 77,500 5,898 83,398 64,463 5,898 70,361 13,037 $14,037 Increases 1,862 1,862 (1,862) ($1,862) Decreases ($4,879) (4,879) (4,879) (4,879) Balance at December 31, 2010 $1, ,500 1,019 78,519 66,325 1,019 67,344 11,175 $12,175 Business-type activities: Capital assets being depreciated: Water system and imprvements Equipment Ttal capital assets being depreciated Less accumulated depreciatin fr: Water system and inq)rvements Equipment Ttal accumulated depreciatin $104,163 3,063 $107,226 93,920 2,478 96, $104,163 3,063 $107,226 94,806 2, See accuntant's cmpilatin reprt. -18-

20 Ntes t the Financial Statements Balance at Balance at January 1, December 31, 2010 Increases Decreases 2010 Ttal assets being depreciated, net $ ($976) $9.852 Depreciatin expense f $ 1,862 fr the year ended December 31,2010 was charged t the general gvemment gvemmental fimctin and $976 was charged t business-type activities. The deletins in the gvemmental activities capital assets f $4,879 was a fiilly depreciated tractr that was sld fr $2, RISK MANAGEMENT The village purchases cmmercial insurance t reduce the risk f lss resulting frm prperty damage r Uabihty claims. There have been n significant reductins in insurance cveragefrmcverage in the prir year. Settlements have nt exceeded insurance cverage in any fthe past threefiscalyears. See accuntant's cn:q)ilatin reprt. -19-

21 REQUIRED SUPPLEMENTAL INFORMATION See accimtant's cmpilatin reprt. -20-

22 Schedule 1 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND Fr the Year Ended December 31, 2010 REVENUES Franchise taxes Licenses and permits Rent Ryahies Investment earnings Ttal revenues EXPENDITURES General gvemment and public safety: Persnal services Operating services Materials and suppues Ttal expenditures NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Original Budgeted Amunts $2,900 5,400 4, ,500 14,150 1,725 11, , ,669 Final $2,900 5,400 4, ,500 14,150 1,725 11, , ,669 $70,944 $70,944 Actual Amunts (Budgetary Basis- GAAP) $3,079 4,971 2, ,089 1,723 9, , ,669 Variance with Final Budget Psitive (Negative) $179 (429) (2,000) (238) (573) (3,061) 2 2, ,900 (161) $70,783 ($161) See accuntant's cmpilatin reprt. -21-

23 OTHER SUPPLEMENTAL INFORMATION SCHEDULES See accuntant's cn:q)ilatin reprt. -22-

24 SUPPLEMENTAL INFORMATION SCHEDULES As f and Fr the Year Ended December 31, 2010 COMPENSATION PAU> ALDERMEN The schedule fper diem paid aldermen is presented in cn^hance with Huse Cncurrent Reshitin N. 54 fthe 1979 Sessin fthe Luisiana Legislature. Cmpensatin fthe aldermen is included in salary expense fthe General Fund. In accrdance with Luisiana Revised Statute 33:405, the aldermen receive $350 each year. STATUS OF PRIOR YEAR FINDINGS The fllw-up and crrective actin taken n all prir yearfindingsis presented in Schedule 3. CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN The crrective actin plan fr current year findings is presented in Schedule 4. See accuntant's cmpilatin reprt. -23-

25 Schedule 2 Schedule f Per Diem Paid Aldermen Fr the Year Ended December 31, 2010 Jerry Clements $350 MarilynMyers 350 Andy Rberts 350 Ttal $1.050 See accuntant's cmpilatin reprt. -24-

26 Schedule 3 STATUS OF PRIOR YEAR FINDINGS Fr the Year Ended December 31, 2010 Reference Number Fiscal Year Finding Initially Occurred Descriptin f Finding Crrective Actin Taken Planned Crrective Actin N/A 2010 N budget adpted fr General Fund fr the year ended December 31, Yes N/A See accuntant's cmpilatin reprt. -25-

27 Schedule 4 CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN Fr the Year Ended December 31, 2010 Reference Number Descriptin f Findmg Crrective Actin Plarmed Name f Cntact Persn Anticipated Cnvictin Date N/A Actual revenues filed t meet budgeted revenues by $3,061 r 21%. Fr all future years, the village will adpt a budget amendment when actual revenues fail t meet budgeted revenues by 5% r mre. Wayne Tanner, Mayr 12/31/U See accimtant's cmpilatin reprt. -26-