IliSAi Postlethwaite isbilkl &Netterville

Transcription

1 , LOUISIANA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECMEMBER 31,2015 IliSAi Postlethwaite isbilkl &Netterville A Professional Accounting Corporation

2 TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT Page No. Independent Auditors' Report 1-2 REQUIRED SUPPLEMENTARY INFORMATION - Part I Management's Discussion and Analysis 3-8 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements fgwesi: Statement of Net Position 9 Statement of Activities 10 Fund Financial Statements (TFSI: Governmental Fund: Balance Sheet 11 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position 12 Statement of Revenues, Expenditures, and Changes in Fund Balance 13 Reconciliation of the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fxmd Balance to the Statement of Activities 14 Proprietarv Fund: Statement of Net Position 15 Statement of Revenues, Expenses, and Changes in Fund Net Position 16 Statement of Cash Flows 17 Notes to Financial Statements 18-35

3 TABLE OF CONTENTS REQUIRED SUPPLEMENTARY INFORMATION - Part II Budgetary Comparison Schedule; General Fund 36 Schedule of Proportionate Share of the Net Pension Liability 37 Schedule of Plan Contributions 38 SUPPLEMENTARY INFORMATION Schedule of Compensation, Benefits, and Other Payments to Chief Executive Officer 39 OTHER REPORTS AND SCHEDULES Independent Auditors' 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 40 Schedule of Findings and Responses 41 Summary Schedule of Prior Audit Findings 42 OTHER SUPPLEMENTARY INFORMATION REQUIRED BY USDA Sewer Customers and Rates 43 Aged Accounts Receivables 43 Insurance in Force 43 Contact Information for the Mayor and Board of Alderman 43

4 P&N Postlethwaite & Netterville A Professional Accounting CorporoHon Associated Offices in Principal Cities of the United States INDEPENDENT AUDITORS' REPORT The Honorable Ron Animashaun, Mayor and Members of the Village Council Village of Napoleonville, Louisiana We have audited the accompanying financial statements of the governmental activities, business-type activities, and each major flmd of the Village of Napoleonville, Louisiana, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are fi-ee fi'om material misstatement, whether due to ifraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on otu 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 and the guide require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are fi-ee of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risk of material misstatement in the financial statements, whether due to fi-aud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eflfectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, and each major fund of the Village of Napoleonville, Louisiana, as of December 31,2015, and the respective changes in fmancial position and, and where applicable, cash flows, thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. 326 E. Cornerview Gonzales, LA Tel: Fax:

5 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, the schedule of proportionate share of net pension liability, and the schedule of plan contributions on pages 3 through 8 and 36 throng 38 to supplement the basis financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board who considered it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Napoleonville's basic financial statements. The schedule of compensation, benefits and other payments to chief executive officer, the schedules of sewer customers and rates, aged accounts receivable, insurance in force, and contact information for the Mayor and Board of Alderman, as required by the U.S. Department of Agriculture is presented for purposes of additional analysis and is not a required part of foe basic financial statements. The schedule of compensation, benefits and other payments to chief executive officer, foe schedules of sewer customers and rates, aged accounts receivable, insurance in force and contact information for foe Mayor and Board of Alderman are foe responsibility of management and were derived from and relate directly to foe imderlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in foe audit of foe basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare foe financial statements or to foe basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in foe United States of America. In our opinion, foe schedule of compensation, benefits and other payments to chief executive officer, foe schedules of sewer customers and rates, aged accounts receivable, insurance in force and Mayor and Board of Alderman are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2016, on our consideration of foe Village of Napoleonville, Louisiana'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 foe results of that testing, and not to provide an opinion on foe internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Village of Napoleonville, Louisiana's internal control over financial reporting and compliance. V OA AAli: ' Jime 30,2016 Gonzales, Louisiana

6 Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the Village of Napoleonville's (the Village) annual financial report presents our discussion and analysis of the Village's financial performance for the year ended December 31, Please read this document in conjunction with the Village's financial statements. Financial Highlights At December 31, 2015, the Village's combined total assets plus deferred outflows of resources exceeded its liabilities plus deferred inflows of resources by $3,598,804 (net position). Net position of the governmental activities was $600,198 while the business-type activities was $2,998,606. For the year ended December 31,2015, the Village's total net position decreased by $93,968. At December 31, 2015, the Village's governmental activities reported net position of $600,198. Of this amount, $60,562 is available for spending at the Village's discretion (unrestricted net position). At December 31, 2015, the Village's business-type activity reported net position of $2,998,606. Of this amount, $60,878 is available for spending at the Village's discretion (unrestricted net position). Two new accoimting standards, GASB 68 and GASB 71, were implemented this year which requires the proportionate share of the net pension liability for each cost sharing plan and the total Village of Napoleonville's Employees' Retirement System's net pension liability to be recorded on the Village's financials. The total of this liability at December 31, 2015 is $29,737. The implementation of this new accounting standard required an adjustment of $69,679 to the 2014 net position. As a result of this adjustment, the 2014 net position was restated from the balance originally reported of $657,860 to $588,181. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Village's basic financial statements. The Village's basic financial statements comprise three components: (1) government-wide financial statements, (2) fimd financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village's finances in a manner similar to a private-sector business. The Statement of Net Position presents information on the Village's assets and liabilities using the accrual basis of accounting, in a manner similar to the accounting used by private business enterprises. The difference between the assets and liabilities is reported as net position. Over time, the increases in net position and changes in the components of net assets may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the Village's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenue and expenses reported in this statement for some items will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused annual leave).

7 Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS In both of the government-wide financial statements, the Village's activities are divided into two types: Governmental activities - Most of the Village's basic services are reported here, including the general government, public safety, highways and streets, and sanitation. These activities are fmanced primarily by property taxes, franchise taxes, sales taxes, and fines. Business-type activities - The Village charges a fee to customers to help it cover all of the cost of services provided. The Village's sewer utility system is reported in this section. Fund Financial Statements A fimd is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fimd accoimting to ensure and demonstrate compliance with finance-related and legal requirements. The Village uses two categories of fimds to account for financial transactions: governmental fimds and proprietary fimds. Traditional users of governmental financial statements will find the fimd financial statements presentation more familiar. Governmental fimds are used to accoimt for most of the Village's basic services. However, imlike the government-wide financial statements, governmental fimd financial statements focus on how money flows into and out of those fimds and the balances that are left at year-end that are available for spending. These fimds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fimd statements provide a detailed short-term view of the Village's general government operations and the basic services it provides. Governmental fimd information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the Village's programs. Proprietary fimds account for sewer utility services provided by the Village to its customers. Proprietary fimds statements provide the same type of information as the government-wide financial statements, but the fimd presentation provides more detail. Because the focus of governmental fimds is narrower than that of the govermnent-wide financial statements, there are differences in the information presented for government funds and for governmental activities in the government-wide financial statements. Review of these differences provides the reader of the financial statements insight on the longterm impact of the Village's more immediate decisions on the current use of fmancial resources. Both the governmental fimd Balance Sheet and the governmental fimd Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental fimds and governmental activities. The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fimd fmancial statements. Financial Analysis of the Village as a Whole Net position. The Village's combined net position decreased between fiscal years 2015 and 2014 from approximately $3.7 million to approximately $3.6 million.

8 VILLAGE OF NAPOLEONVELLE Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS Governmental Activities Village's Net Position December 31,2015 Business-type Activities , as restated Current and other assets $160,019 $ 184,158 $80,651 $ 82,456 Restricted cash ,682 94,627 Capital assets, net 522, ,331 3,616,066 3,748,147 Total Assets 682, ,489 3,797,399 3,925,230 Deferred outflows of resources 11,452 1,478 _ Total assets and deferred outflows of resources 694, ,967 3,797,399 3,925,230 Current liabilities 12,284 15,903 41,247 41,564 Long-term liabilities 46,463 34, , ,075 Total Liabilities 58,747 49, , ,639 Deferred inflows of resources 35,436 53,849. _ Total liabilities and deferred inflows of resources 94, , , ,639 Net investment in capital assets 522, ,331 2,837,046 2,948,643 Restricted for Other purpose 16, Debt service ,682 94,627 Unrestricted 60,562 81,850 60,878 61,321 Total Net Position $600,198 S 588,181 $2,998,606 $3,104,591 The largest portion of the Village's net position reflects its investment in capital assets (land, buildings, equipment, infrastructure, and improvements) net of any outstanding related debt used to acquire those capital assets. These capital assets are used to provide services to citizens and do not represent resources available for future spending. Although the Village's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets cannot be used to liquidate these liabilities. The December 31, 2014 governmental total net position was restated to $588,181 as a result of the adoption of a new accounting standard. The total net position of the Village's governmental activities increased by approximately $12,000, over the prior fiscal year, while the business-type activities decreased approximately $106,000 during Governmental activities unrestricted net position, which decreased by approximately $21,000, represents the portion of the Village's resources that can be used to fmance day-to-day operations without constraints established by debt covenants, enabling legislation or other legal requirements. Revenues and expenses for the Village's governmental activities increased 12.2 and 12.9 percent, respectively, while the Village's business-type activities revenues decreased 4.9 percent and expenses increased 16.9 percent for the current fiscal year. The governmental activities revenues generated for 2015 and 2014 covered the total cost of operations whereas the business-type activities revenue generated for 2015 and 2014 did not, as depicted below.

9 Program revenues General revenues VILLAGE OF NAPOLEONVILLE Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS Changes in Net Position Year Ended December 31,2015 Governmental Activities Business-ty $207, ,586 $194, ,355 $ 104, $ 110, Total Revenues 399, , , ,355 Operating expenses 387, , , ,303 Change in net position 12,017 13,044 (105,985) (69,948) Net position - beginning 588, ,816 3,104,591 3,174,539 Effect of change in accounting principle - GASH 68 _ (69,679) - - Net position - ending $600,198 $588,181 $2,998,606 $3,104,591 Financial Analysis of the Village's Funds As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the Village's general fund, its only governmental fimd, is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village's financing requirements. In particular, unreserved fimd balance may serve as a useful measure of the Village's net resources available for spending at the end of the year. At the end of the current year, the Village's governmental fimds reported a fimd balance of $147,735, all of which is unassigned and available for spending at the Village's discretion. The following schedule presents a summary of governmental fimd revenues and expenditures for the fiscal year ended December 31,2015, and the amoimt and percentage of increases and decreases in relation to the prior year. Increase Percent FYE 2015 Percent FYE 2014 (Decrease) Increase Revenues Amount of Total Amount from FYE (Decrease) 2014 Taxes $168, % $156,000 $12, % Intergovernmental 5, % 51,552 (46,317) (89.85%) State and local grants 30, % - 30,352 - Federal grants 32, % - 32,900 - Charges for services 53, % 52, % Fines and forfeitures 2, % 3,171 (411) (12.96%) Licenses and permits 69, % 71,588 (1,770) (2.47%) Rental income 17, % 18,930 (1,400) (7.40%) Interest % 93 (15) (16.13%) Miscellaneous 3,245.85% 1,887 1, % Total Revenues $383, % $356,197 $27, %

10 Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS Increase Percent FYE 2015 Percent FYE 2014 (Decrease) Increase Expenditures Amount of Total Amount from FYE (Decrease) 2014 General government $158, % $145,269 $13, % Public Safety 45, % 18,191 26, % Streets 34, % 35,618 (1,264) (3.55%) Sanitation 63, % 63, % Culture and recreations 10, % 13,338 (2,550) (19.12%) Capital outlays 91, % 132,723 (41,109) (30.97%) Total Expenditures $404, % $408,271 ($4,139) % Proprietary Funds The Village's proprietary fund provides the same type of information found in the government-wide financial statements, but in more detail. General Fund Budgetary Highlights Original budgeted revenues were $487,300 and expenditures were $504,315. The original budget was amended during the year and amended budgeted revenues were $380,200 and amended budgeted expenditures were $449,515. Budgeted revenues exceeded actual amounts by $3,412. Budgeted expenditures were below actual amounts by $45,383. Capital Assets The Village's net investment in capital assets for its governmental and business-type activities as of December 31,2015, amounts to $3,359,956. Governmental Activities Business-type Activities Totals Land $88,500 $88, $88,500 $88,500 Construction in progress Buildings & improvements 140, , , ,148 Vehicles 8,088 15, ,088 15,539 Machinery and equipment 152, , , ,330 Infrastructure 133, , , ,960 Utility property - - 3,616,066 3,748,001 3,616,066 3,748,001 Totals $522,910 $506,331 $3,616,066 $3,748,147 $4,138,976 $4,254,478

11 Long-Term Debt VILLAGE OF NAPOLEONVILLE Napoleonville. Louisiana MANAGEMENT'S DISCUSSION AND ANALYSIS At December 31,2015, the Village had total debt outstanding of $795,746. Of this total, $21,474 is due within one year and $774,272 is due in more than one year. Outstanding Debt December 31,2015 Governmental Activities: Net pension liability Claims payable Business-type activities USDA loans Balance Beginning of Year Additions Deletions $ 17,308 16,726 $ 799,504 $ $ 20,484 Balance End of Year $ 28,299 $ 15,870 $ 29,737 16,726 $ 779,020 Total long-term debt $ 833,538 $ 28,299 $ 36,354 $ 825,483 Other Factors Affecting the Village The Village of Napoleonville's management approach is conservative. When possible, the Mayor and Aldermen attempt to provide services for the Village based on existing revenues and to finance long-term projects only when absolutely necessary. The Village also attempts to keep sewer rates at the minimum required to cover the costs of the sewer system operations. Economic Factors and Next Year's Budgets The Village of Napoleonville's revenue mainly consists of Sales Taxes, Ad Valorem Taxes, Fines & Forfeitures, and Licenses and Permits. These revenues are dependent on the economic conditions of the area. Budgeted revenues and expenditures are projected to be consistent with Contacting the Village's Financial Management This financial report is designed to provide the Village's citizens, taxpayers, customers, and creditors with a general overview of the Village's finances and to show the Village's accountability for the money it receives. Questions regarding this report or requests for additional information should be addressed to the Village of Napoleonville, 123 Jefferson Street, Napoleonville, LA 70390, telephone (985)

12 STATEMENT OF NET POSITION DECEMBER 31.20t5 ASSETS Current assets: Cash Receivables: Ad valarem taxes Sales taxes Garbage assessment Franchise fees Grant Other Sewer charges Due from other funds Total Current Assets Non-current assets: Restricted cash Capital assets, net of accumulated depreciation Total Non-Current Assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES Pension related TOTAL DEFERRED OUTFLOWS OF RESOURCES Governmental Activities Business-type Activities Total $ $ $ _ , ,311-15, ,019 80, , ,616, , ,716, , ,929 3,797,399 4,480, ,452 11, ,452 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ $ LIABDUTIES Ciuient liabilities: Accounts payable Accrued liabilities Due to other funds Current portion of long-term debt: $ Total Current Liabilities U Non-current liabilities: Net pension liability Claims payable Long-term debt , ,546 Total Non-Current Liabilities , ,009 TOTAL LlABlLmES ,540 DEFERRED INFLOWS OF RESOURCES Pension related 35,436 35,436 TOTAL DEFERRED INFLOWS OF RESOURCES 35,436 35,436 Net investment in capital assets Restricted for: Other ptnposes Debt service Unrestricted , TOTAL NET POSITION 600, ,598,804 TOTAL LIABILll les, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 694,381 $ 3,797,399 $ 4,491,780 The accompanying notes are an integral part of this financial statement.

13 STATEMENT OF ACTIVITIES FOR THE YE AR ENDED DECEMBER Program Revenues Fees, Fines, and Operating Capital Changes in Net Position Charges for Grants and Grants and Govemmental Business-Type Expenses Services Contributions Contributions Activities Activities Total ACTIVITIES Governmental; General government $ 170,759 $ 71,586 $ $ 63,252 $ (35,921) $ - $ (35,921) Police 52,609 2,760 - (49,849) - (49,849) Streets and drainage 74, (74,662) - (74,662) Sanitation 63,726 53,401 - (10,325) - (10,325) Culture and recreation 25,797 17,530 - (8,267) - (8,267) Total governmental activities 387, ,277 63,252 (179,024) - (179,024) Business-type: Utility 210, ,288 2,450 - (106,097) (106,097) Total business-type aetivities 210, ,288 2,450 - (106,097) (106,097) Total Primary Government $ 598,388 $ 247,565 $ $ 65,702 (179,024) (106,097) (285,121) General Revenues: Taxes: Property taxes, net 39,037-39,037 Sales and use taxes 110, ,178 Franchise taxes 17,855-17,855 Intergovernmental 5,235-5,235 Investment income Other 18,658-18,658 Total general revenues and transfers 191, ,153 Change in net position 12,017 (105,985) (93,968) Net position - January 1,2015, as restated 588,181 3,104,591 3,692,772 Net position - December 31, 2015 $ 600,198 $ 2,998,606 $ 3,598,804 The accompanying notes are an integral part of this financial statement. 10

14 BALANCE SHEET GOVERNMENTAL EUND DECEMBER ASSETS Cash and cash equivalents Receivables - Ad valorem taxes Sales taxes Garbage assessment Franchise fees Grant Other Due from other funds Total assets General Fund 109,027 13,442 7,950 4,541 1,960 6,677 1,111 15, ,019 LIABILITIES Accounts payable Accrued payroll liabilities Total liabilities 5,153 7,131 12,284 FUND BALANCE Unassigned Total fund balance Total liabilities and fund balance 147, , ,019 The accompanying notes are an integral part of this financial statement. 11

15 RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER Total fond balance - Governmental Fund $ 147,735 Amounts reported for govemmenal activities in the statement of net position is different because: Capital assets used in the governmental activities that are not financial resources and, therefore, are not reported in the governmental funds: Cost of capital assets at December 31,2015 $ 1,489,509 Less: accumulated depreciation as ofoecember 31,2015 (966,599) Deferred outflows - pension related 522,910 11,452 Long-term liabilities applicable to the Village's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities: Net pension liability Long-term debt Deferred inflows - pension related Total net position at December 31, Governmental Activities (29,737) (16,726) (35,436) $ 600,198 The accompanying notes are an integral part of this financial statement. 12

16 STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND YEAR ENDED DECEMBER REVENUE Taxes Intergovernmental revenue State and local grants Federal grant Charges for services Fines and forfeitures Licenses and permits Rental Income Investment income Miscellaneous Total revenues General Fund 167,070 5,235 30,352 32,900 53,401 2,760 71,586 17, ipm 383,612 EXPENDITURES Current: General government Public Safety Streets Sanitation Culture & Recreation Capital Outlay: General government Total expenditures Excess of revenues over (under) expenditures Fund Balance, Beginning of Year Fund Balance, End of Year 158,529 45,121 34,354 63,726 10,788 91, ,132 (20,520) 168,255 $ 147,735 The accompanying notes are an integral part of this financial statement. 13

17 RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES DECEMBER Net change in fund balance - Governmental funds $ (20,520) The change in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets are allocated over their estimated useful lives and reported as depreciation expense. Capital assets: Capital outlay capitalized $ 91,614 Depreciation expense for the year ended December 31,2015 (75,035) 16,579 Certain revenues in the statement of activities that do not provide available current financial resources are not reported as revenues in the funds. Net effects of change in net pension liability and deferrals 15,958 Change in net position of governmental activities $ 12,017 The accompanying notes are an integral part of this financial statement. 14

18 STATEMENT OF NET POSITION PROPRIETARY FUND DECEMBER ASSETS Current assets: Cash and cash equivalents Receivables (net of allowance) Total Current Assets Non-current assets: Restricted cash Capital assets, net of accumulated depreciation Total Non-current Assets Total Assets Enterprise Fund 70,301 10,350 80, ,682 3,616,066 3,716,748 $ 3,797,399 LIABILITIES Current liabilities: Accounts payable Due to general fund Accrued interest payable Current portion of long-term debt Total Current Liabilities Non-current liabilities: Long-term debt Total Non-Current Liabilities Total Liabilities 1,559 15,311 2,903 21,474 41, , , ,793 NET POSITION Net investment in capital assets Restricted Unrestricted Total Net Position Total Liabilities and Net Position 2,837, ,682 60,878 2,998,606 $ 3,797,399 The accompanying notes are an integral part of this financial statement. 15

19 STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN FUND NET POSITION PROPRIETARY FUND YEAR ENDED DECEMBER OPERATING REVENUES Charges for service - Sewer charges Total operating revenues Enterprise Fund $ 102, ,288 OPERATING EXPENSES Health and welfare Depreciation Total operating expenses OPERATING LOSS 40, , ,905 (70,617) NONOPERATING REVENUES (EXPENSES! Interest income Grant Proceeds Interest expense Total non-operating revenues Change in net position Total net position - beginning Total net position - ending 112 2,450 (37,930) (35,368) (105,985) 3,104,591 $ 2,998,606 The accompanying notes are an integral part of this financial statement. 16

20 STATEMENT OF CASH FLOWS PROPRIETARY FUND YEAR ENDED DECEMBER Enterprise Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments for goods and services Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Income Net cash provided by investing activities CASH FLOWS FROM NONCAPITAL FINANCING ACTFVTTIES Payments of loans due to other funds Net cash used in noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTTVTTTES Proceeds from grants Capital asset additions Payment on debt obligations Interest payments on debt obligations Net cash used in capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents - December 31,2014 Cash and cash equivalents - December 31,2015 RECONCILIATION OF CASH Cash and cash equivalents Restricted cash Total Cash RECONCILIATION OF OPERATING LOSS TO NET CASH USED FOR OPERATING ACTIVITES: Operating loss Adjustments to reconcile operating income to net cash used by operating activities - Depreciation Decrease in accounts receivable - customers Increase in accounts payable Net cash provided by operating activities $ 103,061 (39,264) 63, (2,922) (2,922) 5,883 (20,484) (37,930) (52,531) 8, ,527 $ 170,983 $ 70, ,682 $ 170,983 $ (70,617) 132, ,560 $ 63,797 The accompanying notes are an integral part of this financial statement. 17

21 VILLAGE OFNAPOT.FONVII.T.F Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Reporting Entity The Village of Napoleonville, Louisiana (the "Village") was incorporated under the provisions of the Lawrason Act (LSA- RS 33:321). The Village operates under a Mayor-Board of Aldermen Council form of government. The Mayor and each of the three aldermen are elected at-large for four-year terms. The Mayor and Aldermen are compensated per diem for each meeting attended; in addition, the Mayor receives a salary. The estimated population is 686. The Village provides police protection, services to maintain and develop streets, drainage, and sanitation, general and administrative services, and utilities services for area residents. The Village provides sewer services to customers inside and outside of the Village limits. The Village employs 6 full-time employees in addition to the Mayor and Board of Aldermen. As the municipal governing authority, for reporting purposes, the Village of Napoleonville is considered a separate financial reporting entity. The financial reporting entity consists of [a] the primary government (municipality), [b] organizations for which the primary government is financially accoxmtable, and [c] other organizations for which nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Code Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting Standards established criteria for determining the governmental reporting entity and component units that should be included within the reporting entity. Under provisions of this statement, the Village is considered a primary government, since it is a special purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state and local governments. Fiscally independent means that the Village may, without the approval or consent of another governmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt. There are no other component units which the Village of Napoleonville has an oversight relationship. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed fi-om these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately fi-om business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately fi-om certain legally separate component units for which the primary government is fmancially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit fi-om goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are presented as separate columns in the fund financial statements. 18

22 Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, fi-anchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in other funds. The Village reports the following major proprietary funds: The Enterprise Fund accounts for operations (a) that are financed and operated in a manner similar to private business enterprise where the intent of the governing body is that costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user fees, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule, if applicable, are payments-in-lieu of taxes and other charges between the government's enterprise operations. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amotmts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 19

23 VILLAGE OF NAPOI.FONVTT J.F, Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the proprietary funds are user charges for the services provided by the enterprise fund. Operating expenses for the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Cash and cash equivalents The Village's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the Village of Napoleonville, Louisiana to invest in United States bonds, treasury notes and bills, or certificates or time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. In addition, local governments in Louisiana are authorized to invest in the Louisiana Asset Management Pool, Inc. (LAMP), a non-profit corporation formed by an initiative of the State Treasurer and organized under the laws of the State of Louisiana, which operates a local government investment pool. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property taxes are levied on a calendar year basis and become due on January 1 of each year. The following is a summary of authorized and levied ad valorem taxes: Authorized Levied Millage Millage General Purposes Maintenance Purposes Sales Taxes are levied at 1% percent. The proceeds of this sales and use tax are dedicated to general purposes. Restricted Net Position Certain proceeds of the Enterprise Fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets because their use is limited by applicable debt covenants. 20

24 Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Village maintains a threshold level of $500 or more for capitalizing capital assets. As a Phase III government (a government with annual revenues of less than $10 million), the VUlage elected not to retroactively report infrastructure assets prior to implementation. Historically, a government's largest group of assets, infrastructure assets (roads, bridges, street lighting, etc.) have not been reported nor depreciated in governmental financial statements. As a Phase III government, the Village of Napoleonville is not required to retroactively report infrastructure in the Statement of Net Assets under the guidance of the Governmental Accounting Standards Board. The Village is however required to disclose in the notes to the financial statements any infrastructure items that were omitted from the financial statements. As of December 31, 2015, none of the roads, bridges or street lighting contained within the village corporate limits were included in the Statement of Net Position. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend their lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. All capital assets, other than land, are depreciated using the straight-line basis over the following useful lives: Buildings and Improvements Infrastructure Vehicles and Equipment Sewer Utility System Years 25 Years 5-15 Years Years Compensated Absences In the government-wide financial statements, the Village employee's leave is recorded as a long-term liability. As of December 31,2015 there was not any compensated absence liability. The cost of leave privileges, computed in accordance with GASB Codification Section 60, is recognized as a current-year expenditure in the governmental fund when leave is taken. Long-Term Obligations In the govemment-wide financial statements and the proprietary fund types in the fimd financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discoimt. 21

25 Napoleonviile. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts as well as bond issuance costs during the current period. The face amoimt of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld fi-om the actual debt proceeds received, are reported as debt service expenditures. Fund Equity Accounting standards require governmental fund balances to be reported in as many as five classifications as listed below; Nonspendable - represents amoimts that are not expected to be converted to cash because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted - represents balances where constraints have been established by parties outside the Village or imposed by law through constitutional provisions or enabling legislation. Committed - represents balances that can only be used for specific purposes pmsuant to constraints imposed by formal action of the Village's highest level of decision-making authority. Assigied - represents balances that are constrained by the Village's intent to be used for specific purposes, but are not restricted nor committed. Unassigned - represents balances that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the general fimd. When expenditures are incurred for the purposes for which both restricted and unrestricted amounts are available, the Village will reduce restricted amounts &st, followed by unrestricted amounts. When expenditures are incurred for purposes for which committed, assigned and imassigned amounts are available, the Village will reduce committed amoimts first, followed by assigned amounts, and then unassigned amounts. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Reconciliations of Government-Wide and Fund Financial Statements Explanation of certain differences between the governmental fimd balance sheet and the government-wide statement of net position is presented on page 12 of the basic financial statements. Explanation of certain differences between the governmental fimd statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities is presented on page 14 of the basic financial statements. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position or Balance Sheet will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure) until then. 22

26 Napoleonville. Louisiana NOTES TO FINANTCAL STATEMENTS DECEMBER NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Village has one item that qualifies for this category; pension related deferrals, which are reported in the governmentwide statement. In addition to liabilities, the Statement of Net Position or Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net position that applies to a fiiture period(s) and so will not be recognized as an inflow of resources (revenue) at that time. The Village has two items that qualify for this category; pension related deferrals and deferred property taxes. The amounts deferred are recognized as an inflow of resources in the period that the amounts become available. Restricted Net Position For the government-wide statement of net position, net position is reported as restricted when constraints placed on net position use either: Externally imposed by creditors (such as debt covenants), grants contributors, laws, or regulations of other governments; or Imposed by law through constitutional provisions or enabling legislation. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Current Year Adoption of New Accounting Standard and Restatement of Net Position The Village of Napoleonville adopted Government Accounting Standards Board (GASB) Statement Number 68 - Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, and Statement Number 71 - Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68. The net effect to the entity-wide Statement of Net Position for the prior year that resulted fi-om the adoption of GASBs 68 and 71 is as follows: Governmental Activities Total Net Position, December 31,2014 as previously reported $ 657,860 Net Pension Liability at Jime 30,2014 (17,308) Deferred inflow of resources at June 30,2014 (53,849) Deferred outflow of resources at June 30, ,478 Total Net Position, December 31,2014, Restated $ 588,181 23

27 Vn^LAGE OF NAPOLEONVILLE Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 2 - STEWARDSHIP, COMPLIANCE and ACCOUNTABILITY The Village uses the following budget practices: 1. The Village Clerk prepares a proposed budget and submits to the Mayor and Board of Aldermen no later than fifteen days prior to the beginning of each fiscal year. 2. A summary of the proposed budget is published and the public is notified that the proposed budget is available for public inspection. At the same time, a public hearing is called. 3. A public hearing is held on the proposed budget at least ten days after publication of the call for the hearing. 4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of an ordinance prior to the commencement of the fiscal year for which the budget is being adopted. 5. Budgetary amendments involving the transfer of funds from one department, program or function to another or involving the increase in expenditures resulting from revenues exceeding amoimts estimated, require the approval of the Board of Aldermen. 6. All budgetary appropriations lapse at the end of each fiscal year. 7. Budgets for the general and enterprise funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgets for enterprise fimds are presented on the accrual basis of accounting. Other governmental tods are presented on the modified accrual basis of accoimting. Accordingly, the budgetary comparison schedules present actual expenditures in accordance with the accounting principles generally accepted in the United States on a basis consistent with the legally adopted budgets as amended. All budgetary amounts presented reflect the original budget and the amended budget (which have been adjusted for legally authorized revisions of the annual budget during the year). NOTE 3 - RECEIVABLES In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts are based upon historical trends and the period aging and write-off of accounts receivable. Major receivables balances for the governmental activities include sales taxes, ad valorem taxes, franchise taxes, occupational licenses, fines, and grants. Business-type activities report utilities earnings as their major receivable. In the tod financial statements, material receivables in governmental tods include revenue accruals such as sales tax, ad valorem taxes, franchise taxes, occupational licenses, fmes, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Non-exchange transactions collectible but not available are deferred in the tod financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded only if paid within 60 days since they would be considered both measurable and available. Proprietary tod revenues consist of all revenues earned at year-end and not yet received. Utility accounts receivable comprise the majority of proprietary tod receivables. Allowances for imcollectible accounts receivable are based upon historical trends and the periodic aging and write-off of accounts receivable. As of December 31, 2015, management believes all receivables are collectible and no allowance has been recorded in the current year. 24

28 Napoleonville. Loaisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 4 - CASH AND CASH EQUIVALENTS At December 31,2015, the Village has cash and cash equivalents (book balances) totaling $280,010 as follows: Cash Restricted Cash Total Interest-Bearing Demand Deposits $ 123,702 $ $ 123,702 LAMP 55, , ,308 $ 179,328 $ 100,682 $ 280,010 These deposits are stated at cost, which approximates market value. Under state law, these deposits (or the resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. At December 31, 2015, the Village has $133,101 in interest-bearing demand deposits (collected bank balances). These deposits are secured fi-om risk by $250,000 of federal deposit insurance. LAMP is administered by LAMP, Inc., a non-profit corporation organized under the laws of the State of Louisiana. Only local government entities having contracted to participate in LAMP have an investment interest in its pools of assets. The primary objective of LAMP is to provide a safe environment for the placement of public fimds in short-term, high quality investments. The LAMP portfolio includes only securities and other obligations in which local governments in Louisiana are authorized to invest in accordance with LA - R.S. 33:2955. The value of the portfolio is carried at amortized cost. As of December 31,2015, the Village had abalance of $156,308 invested in LAMP. LAMP is a 2a7-like investment pool. The following facts are relevant for 2a7-like investment pools: Credit risk: LAMP is rated AAAm by Standard & Poor's. Custodial risk: LAMP participants' investments in the pool are evidenced by shares of the pool. Investments in pools should be disclosed, but not categorized because they are not evidenced by securities that exist physical or book-entry form. The public entity's investment is with the pool, not the securities that make up the pool; therefore, no disclosure is required. The dollar weighted average portfolio maturity of LAMP assets is restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days. The fair value of investments is determined on a weekly basis to monitor any variances between amortized cost and fair value. For purposes of determining participants' shares, investments are values at amortized cost. The fair value of the participant's position is the same as the value of the pool shares. LAMP is designed to be highly liquid to give its participants immediate access to their account balances. Certain cash and investment deposit balances are restricted in that they comprise reserves that are required to be maintained under various bond indentures. See also Note 5. The following is a schedule of restricted cash balances at December 31, 2015: Proprietary Fxmd Amount Debt Service $ 100,682 Total $ 100,682 25

29 Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 5 - RESTRICTED ASSETS and RESTRICTED NET ASSETS Under the terms of the USDA loan agreements, the Village is to make monthly deposits into a Bond and Interest Sinking Fund, a Reserve Fund (5% of the annual debt payment) and Depreciation & Contingency Fund ($156 per month). As of December 31,2015, the status of these accounts is as follows: Bond reserve fund Cash on Deposit $ 50,040 Amount Required per USDA $ 49,706 Bond depreciation and contingency fund 50,642 50,393 Total $ 100,682 $ 100,099 NOTE 6 - LONG-TERM OBLIGATIONS The following is a summary of long-term obligation transactions for the year ended December 31,2015: Balance Balance Ehie Within Governmental Funds 12/31/2014 Additions Reductions 12/31/2015 One Year Net Pension liability $ 17,308 $ 28,299 $ 15,870 29,737 - Claims Payable 16, ,726 Total eovemmental funds 34,034 28,299 15,870 46,463 Proprietary Fund 1989 Sewer Revenue Bond 215,064-9, ,180 10, Sewer Revenue Bond 275,666-5, ,909 6, Sewer Revenue Bond 308,774-4, ,931 5,016 Total nroprietarv ftmd 799,504-20, ,020 21,474 Total long-term debt $ 833,538 $ 28,299 $ 36,354 $ 825,483 $ 21,474 Business-Type Activities Revenue Bonds $336,500 Sewer Revenue Bond secured by a pledge of sewer revenues, due in monthly installments of $1,876 through December 11,2029; interest at 6.0% $331,000 Sewer Revenue Bond secured by a pledge of sewer revenues, due in monthly installments of $1,503 through December 3,2041; interest at 4.5% $340,000 Sewer Revenue Bond secured by a pledge of sewer revenues, due in monthly installments of $1,489 through March 3,2046; interest at 4.25% 205, , ,931 Total long-term debt from business-type activities 779,020 26

30 NOTE 6 - LONG-TERM OBLIGATIONS (continued) VILLAGE OF NAPOT.EONVTTJ.F Napoleonville. Louisiana NOTES TO FEVANICAL STATEMENTS DECEMBER The annual requirements to amortize all debt outstanding at December 31,2015, are as follows; USDA USDA USDA Total Total Total Principal Interest Principal Interest Principal Interest Principal Interest ,451 12,060 6,008 12,025 5,015 12,855 21,474 36, ,130 11,381 6,284 11,749 5,269 12,601 22,683 35, ,817 10,694 6,573 11,460 5,497 12,373 23,887 34, ,546 9,965 6,843 11,190 5,735 12,135 25,124 33, ,293 9,218 7,190 10,843 5,950 11,920 26,433 31, ,954 32,601 41,184 48,980 34,001 55, , , ,989 6,773 51,558 38,606 42,039 47, ,594 92, ,533 25,631 51,975 37, ,508 63, ,736 9,352 64,251 25, ,033 34, ,462 9,890 79,462 9, , , $205,180 $92,692 $269,909 $179,836 $303,931 $236,951 $779,020 $509,479 NOTE 7 - CAPITAL ASSETS Capital assets and depreciation activity as of and for the year ended December 31, 2015 for governmental activities is as follows: Beginning Balance Increases Decreases Ending Balance Capital Assets Not Being Depreciated: Land $88,500 $ $ $88,500 Total Capital Assets Not Being Depreciated 88, ,500 Capital Assets Being Depreciated: Buildings and improvements Infrastructure Vehicles Equipment 646, ,647 75, ,348 18,323 5,492 67, , ,139 75, ,147 Total Capital Assets Being Depreciated 1,309,395 91,614 1,401,009 Less Accumulated Depreciation for: Buildings and improvements Infrastructure Vehicles Equipment (504,713) (208,687) (60,000) (118,164) (20,116) (14,432) (7,451) (33,036) - (524,829) (223,119) (67,451) (151,200) Total Accumulated Depreciation (891,564) (75,035) - (966,599) Capital Assets Being Depreciated, Net 417,831 16, ,410 Governmental Activities Capital Assets, Net $506,331 $ 16,579 $ $522,910 27

31 NOTE 7 - CAPITAL ASSETS (continued) VILLAGE OF NAPOLEONVILLE Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER Depreciation expense was charged to the functions of the primary government as follows: Governmental activities: General government Public safety - police Streets and drainage Culture and recreation Total depreciation expense - governmental activities $ 12,230 7,488 40,308 15,009 $ 75,035 Capital assets and depreciation activity as of and for the year ended December 31, 2015 for business-type activities is as follows: Beginning Ending Balance Increases Decreases Balance Capital Assets Being Depreciated: Sewer Utility System Improvements Equipment Total Capital Assets Being Depreciated Less Accumulated Depreciation for: Sewer System Improvements Equipment 1,185,680 4,091,722 16,361 $ $ 1,185,680 4,091,722 16,361 5,293,763-5,293,763 (889,260) (640,141) (16,215) (29,642) (102,293) (146) (918,902) (742,434) (16,361) Total Accumulated Depreciation (1,545,616) (132,081) (1,677,697) Business-Type Activities Capital Assets, net $ 3,748,147 $ (132,081) $ $ 3,616,066 NOTE 8 - INTERFUND RECEIVABLES/PAYABLES The following is a detailed list of interfund balances reported in the fund financial statements on December 31,2015: Due From Due To Other Funds Other Funds General Fxmd $15,311 $ Enterprise Fund - 15,311 $15,311 $15,311 Transfers from the general fund to other funds are to provide supplemental funds for fund operations. These balances are not expected to be repaid within a year. 28

32 NOTE 9 - PENSION AND RETIREMENT PLANS VILLAGE OF NAPOLEONVILLE Napoieonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER The Village of Napoieonville (the Village) is a participating employer in a cost-sharing defined benefit pension plans. The plan is administered by the Mimicipal Employees' Retirement System of Louisiana (MERS). Article X, Section 29(F) of the Louisiana Constitution of 1974 assigns the authority to establish and amend benefit provisions of these plans to the State Legislature. The system is administered by a separate board of trustees. Municipal Employees' Retirement System of Louisiana (MERS) issues an annual publicly available financial report that includes financial statements and required supplementary information for the system. These reports may be obtained by writing, calling or downloading the reports as follows: MERS: 7937 Office Park Boulevard Baton Rouge, Louisiana (225) The Village implemented Government Accounting Standards Board (GASB) Statement 68 on Accounting and Financial Reporting for Pensions and Statement 71 on Pension Transition for Contributions Made Subsequent to the Measurement Date - an Amendment of GASB 68. These standards require the Village to record its proportional share of each of the pension plans Net Pension Liability and report the following disclosures: Plan Descriptions: Municipal Employees' Retirement System of Louisiana (MERS) The Municipal Employees' Retirement System of Louisiana (MERS) is the administrator of a cost sharing multipleemployer defined benefit pension plan. The System was originally established by Act 356 of the 1954 regular session of the Legislature of the State of Louisiana. The System provides retirement benefits to employees of all incorporated villages, towns and cities within the State which do not have their own retirement system and which elect to become members of the System. For the year ended June 30,2015, there were 82 contributing municipalities in Plan A and 68 in Plan B. The Village of Napoieonville is a participant in Plan B only. The following is a description of the plan and its benefits and is provided for general information purposes only. Membership is mandatory as a condition of employment beginning on the date employed if the employee is on a permanent basis working at least thirty-five hours per week. Those individuals paid jointly by a participating employer and the parish are not eligible for membership in the System with exceptions as outlined in the statutes. Any member of Plan B who was hired before January 1, 2013 can retire providing the member meets one of the following criteria: 1. Any age with thirty (30) years of creditable service. 2. Age 60 with a minimum of ten (10) or more years of creditable service. 3. Any age with ten (10) years of creditable service eligible for disability benefits. 4. Survivor's benefits require five (5) years creditable service at death of member. Eligibility for Retirement for Plan A and Plan B members hired on or after January 1,2013 is as follows: 1. Age 67 with seven (7) or more years of creditable service 2. Age 62 with ten (10) or more years of creditable service 3. Age 55 with thirty (30) or more years of creditable service 4. Any age with twenty five (25) years of creditable service, exclusive of military service and unused side leave. However, any member retiring under this subsection shall have their benefit actuarially reduced from the earliest age of which the member would be entitled to a vested deferred benefit under any provision of this section, if the member had continued in service to that age 29

33 VILLAGE OF NAPOT.FONVTIJ.F Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 9 - PENSION AND RETIREMENT PLANS (continued) Generally, the monthly amount of the retirement allowance for any member of Plan B shall consist of an amount equal to two percent of the member's monthly average final compensation multiplied by his years of creditable service. However, under certain conditions as outlined in the statutes, the benefits are limited to specified amoimts. Upon death of any member of Plan B with five (5) or more years of creditable service, not eligible for normal retirement, the plan provides for benefits for the surviving spouse as outlined in the statutes. Any member of Plan B who is eligible for normal retirement at time of death and who leaves a surviving spouse will be deemed to have retired and selected Option 2 benefits on behalf of the surviving spouse on the date of death. Such benefits will begin only upon proper application and are paid in lieu of any other survivor benefits. In lieu of terminating employment and accepting a service retirement allowance, any member of Plan A or B who is eligible to retire may elect to participate in the deferred retirement option plan (DROP) for up to three years and defer the receipt of benefits. During participation in the plan, employer contributions are payable but employee contributions cease. The monthly retirement benefits that would be payable, had the person elected to cease employment and receive a service retirement allowance, are paid into the DROP Fund. Interest is earned when the member has completed DROP participation. Interest earnings are based upon the actual rate of return on the investments identified as DROP funds for the period. In addition, no cost-of-living increases are payable to participants until employment which made them eligible to become members of the System has been terminated for at least one full year. Upon termination of employment prior to or at the end of the specified period of participation, a participant in the DROP may receive, at his option, a lump sirni fi-om the account equal to the payments into the account, a true annuity based upon his account balance in that fund, or any other method of payment if approved by the board of trustees. If a participant dies during participation in the DROP, a lump sum equal to the balance in his account shall be paid to his named beneficiary or, if none, to his estate. If employment is not terminated at the end of the three years, payments into the DROP fund cease and the person resumes active contributing membership in the System. For Plan B, a member shall be eligible to retire and receive a disability benefit if he has at least ten years of creditable service; in which he would receive a regular retirement under retirement provisions. A member shall be eligible to retire and receive a disability benefit if he has at least ten years of creditable service, is not eligible for normal retirement, and has been officially certified as disabled by the State Medical Disability Board. Upon retirement caused by disability, a member of Plan B shall be paid a disability benefit equal to the lesser of thirty percent of his final average compensation or two percent of his fmal average compensation multiplied by his years of creditable service, whichever is greater; or an amoimt equal to two percent of the member's final average compensation multiplied by his years of creditable service, projected to his earliest normal retirement age. Funding Policy Article X, Section 29(E)(2Xa) of the Louisiana Constitution of 1974 assigns the Legislature the authority to determine employee contributions. Employer contributions are actuarially determined using statutorily established methods on an annual basis and are constitutionally required to cover the employer's portion of the normal cost and provide for the amortization of the unfunded accrued liability. Employer contributions are adopted by the Legislature annually upon recommendation of the Public Retirement Systems' Actuarial Committee (PRSAC). Contributions to the plans are required and determined by State statute (which may be amended) and are expressed as a percentage of covered payroll. The contribution rates in effect for the year ended Jime 30, 2015, for the Village and covered employees were as follows: City Employees Municipal Employees' Retirement System Plan B All employees 9.5% 5.0% 30

34 Napoleonville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 9 - PENSION AND RETIREMENT PLANS (continued) The contributions made to the Municipal Employees' Retirement System for the past three fiscal years, which equaled the required contributions for each of these years, were as follows: Mimicipal Employees' Retirement System Plan B $ 2,947 2,445 $ 2,000 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The following schedule lists the Village's proportionate share of the Net Pension Liability allocated by each of the pension plans for based on the June 30, 2015 measurement date. The Village uses this measurement to record its Net Pension Liability and associated amounts as of Jime 30, 2015 in accordance with GASB Statement 68. The schedule also includes the proportionate share allocation rate used at June 30, 2015 along with the change compared to the June 30, 2014 rate. The City's proportion of the Net Pension Liability was based on a projection of the Agency's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Net Pension Liability at June 30,2015 Rate at June 30,2015 Increase on Jvme 30,2014 Rate Municipal Employees' Retirement System Plan B $ 29, % % $ 29,737 The following schedule list the pension plan's recognized pension expense (benefit) of the Village for the year ended June 30,2015: Total Municipal Employees' Retirement System Plan B $ (11,961) (H>961) At June 30, 2015, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between Employer contributions and proportionate share of contributions Employer contributions subsequent to the measurement date Total Deferred Outflows of Resources $ 2,711 4,473 2,795 1,473 $ 11,452 Deferred Inflows of Resources $ (848) (34,588) $ (35,436) 31

35 NapoleonviHe. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 9 - PENSION AND RETIREMENT PLANS (continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) Summary totals of deferred outflows of resources and deferred inflows of resources by pension plan: Deferred Outflows Deferred Inflows of Resources of Resources Municipal Employees'Retirement System Plan B $ 11,452 _$ (35,436) $ 11,452 $ (35,436) The Village reported a total of $1,473 as deferred outflow of resources related to pension contributions made subsequent to the measurement period of June 30, 2015 which will be recognized as a reduction in Net Pension Liability in the year ended December 31, The following schedule list the pension contributions made subsequent to the measurement period for each pension plan: Subsequent Contributions Municipal Employees' Retirement System Plan B $ 1,473 $ 1,473 Other amounts reported as deferred outflows of resources and deferred inflows of resoiuces related to pensions will be recognized in pension expense as follows: Year MERS 2016 $ (14,740) 2017 (14,804) , , $ (25,457) (Continued) 32

36 NapoleonvHle. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 9 - PENSION AND RETIREMENT PLANS (continued) Actuarial Assumptions A summary of the actuarial methods and assumptions used in determining the total pension liability for the pension plan as of June 30,2015 is as follows: Valuation Date Actuarial Cost Method Actuarial Assumptions: Expected Remaining Service Lives Investment Rate of Return Inflation Rate Mortality Salary Increases Cost of Living Adjustments MERS June 30,2015 Entry Age Normal Cost 4 years 7. 50% 2.875% Mortality rates based on the RP-2000 Sex Distinct Mortality Table. 5.00% (2.875% Inflation, 2.125% Merit) The System is authorized under state law to grant a cost of living increase to members who have been retired for at least one year. The adjustment cannot exceed 2% of the retiree's original benefit for each fiill calendar year since retirement and may only be granted if sufficient funds are available fi-om investment income in excess of normal requirements. State law allows the System to grant an additional cost of living increase to all retirees and beneficiaries who are age sixty-five and above equal to 2% of the benefit being received on October 1, 1977, or the original benefit, if retirement commenced after that date. The following schedule list the methods used by each of the retirement systems in determining the long term rate of return on pension plan investments: MERS The long-term expected rate of retum on pension plan investments was determined using a building-block method in which bestestimates ranges of expected future real rates of retum (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of retum by weighting the expected future real rates of retum by the target asset allocation percentage and by adding expected inflation of 2.80% and an adjustment for the effect of rebalancing /diversification. The resulting expected long-term rates of retum is 8.30% for the year ended June 30,

37 VILLAGE OF NAPOT.F.ONVTIJ.F Napoleonville.. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 9 - PENSION AND RETIREMENT PLANS (continued) The following table provides a summary of the best estimates of arithmetic/geometric real rates of return for each major asset class included in each of the Retirement Systems target asset allocations as of Jime 30, 2015: Discount Rate Long-Term Expected Target Allocation Real Rate of Return Asset Class MERS MERS Public equity 50.0% 2.95% Equity Public fixed income 15.0% 0.89% Fixed Income Alternatives 35.0% 2.06% Other Total 100.0% 5.90% Inflation 2.40% Expected Arithmetic Nominal Return ^ 30% The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, each of the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The discormt rate used to measure the total pension liability for MERS was 7.50% for the year ended June 30,2015. Sensitivity of the Employer's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following table presents the City's proportionate share of the Net Pension Liability (NPL) using the discount rate of each Retirement System as well as what the City's proportionate share of the NPL would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current rate used by each of the Retirement Systems: 1.0% Decrease Current Discount Rate 1.0% Increase MERS Rates 6.50% 7.50% 8.50% Village of Napoleonville Share of NPL $ 40,116 $ 29,737 $ 20,894 The Village of Napoleonville, Louisiana participated in a Municipal Employees Retirement Plan (MERS) and in the Municipal Police Employee Retirement Plan (MPERS). The plan covers employees who are employed by the Village for at least 6 months. 34

38 Napoleopville. Louisiana NOTES TO FINANICAL STATEMENTS DECEMBER NOTE 10 - RISK MANAGEMENT The Village is exposed to various risks of loss related to theft, damage, or destruction of assets, torts, injuries, natural disasters, and many other unforeseeable events. The Village purchases commercial insurance policies and bonds for any and all claims related to the aforementioned risks. The Village's payment of the insxnance policy deductible is the only liability associated with these policies and bonds. There has been no significant decrease in insurance coverage from the prior year, and the amoimt of settlements has not exceeded the insurance coverage for the past three fiscal years. NOTE 11 - RECLASSIFICATIONS Certain amoimts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. NOTE 12 - COMPENSATION TO BOARD MEMBERS Each member of the Board of Commissioners receives a per diem allowance for attending regular or special meetings of the Board. Each board member was paid the following amoimts for meetings attended in 2015: Amount Rem J. Animashaun, Mayor $26,700 Joyce Bell, Alderwoman 9,000 Richard Bilello, Alderman 9,000 Velma Jupiter, Alderwomen 9,000 Total $53,700 NOTE 13 - SUBSEQUENT EVENTS Management has evaluated subsequent events through the date that the financial statements were available to be issued, June 30,2016, and has determined that there were no events that require disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements. 35

39 BUDGETARY COMPARISON SCHEDULE GENERALFUND FOR THE YEAR ENDED DECEMBER Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Taxes $ 162,000 $ 162,000 $ 167,070 5,070 Intergovernmental revenue 5,000 5,000 5, State and local grants 120,000 25,000 30,352 5,352 Federal grants 33,000 32,900 32,900 - Charges for services 50,000 50,000 53,401 3,401 Fines and forfeitures 3,000 3,000 2,760 (240) Licenses and permits 93,000 83,000 71,586 (11,414) Rental Income 20,000 18,000 17,530 (470) Investment income (22) Miscellaneous 1,200 1,200 2,700 1,500 Total revenues 487, , ,612 3,412 EXPENDITURES Current: General government 163, , ,529 4,986 Public safety 74,500 74,500 45,121 29,379 Streets 43,000 43,000 34,354 8,646 Sanitation 65,000 65,000 63,726 1,274 Culture & Recreation 18,500 18,500 10,788 7,712 Capital Outlay: - General government 140,000 85,000 91,614 (6,614) Total expenditures 504, , ,132 45,383 Excess of revenues over expenditures (17,015) (69,315) (20,520) (41,971) Fund Balance, Beginning of year 138, , ,255 _ Fund Balance, End of year $ 121,114 $ 98,940 $ 147,735 48,795 See independent auditors' report. 36

40 VILLAGE OF NAPOI.KONVII.I.F. SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER (*> 2015 MERS (Plan A) Employer's Proportion of the Net Pension Liability (Asset) % Employer's Proportionate Share ofthe Net Pension Liability (Asset) $ 29,737 Employer's Covered-Employee Payroll $ 30,358 Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered-Emnlovee Payroll % Plan Fiduciary Net Position as a Percentage of the Total Pension Liability % Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. (*) The amounts presented haye a measurement date of June 30,2015. See independent auditors' report. 37

41 SCHEDULE OF PLAN CONTRIBUTIONS FOR THE YEAR ENDED DECEMBER MERS (Plan B) Contractually Required Contribution $ 2,945 Contributions in Relation to Contractually Required Contribution 2,947 Contribution Deficiency (Excess) $ (2) Employer's Covered Employee Payroll $ 31,000 Contributions as a % of Covered Employee Payroll % Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. See independent auditors' report. 38

42 SCHEDULE OF COMPENSATION. BENEFITS AND OTHER PAYMENTS TO CHIEF EXECUTIVE OFFICER FOR THE YEAR ENDED DECEMBER CHIEF EXECUTIVE OFFICER: Ron Animashaun, Mayor Totals Salary $ 27,600 Expense Allowance 0 Benefits-Retirement 0 Benefits Deferred Comp 0 Benefits - Insurance 964 Cellphone provided by Village 1,279 Continuing Education 0 Membership Dues 125 Conference Registration Fees 90 Travel & Meals 0 30,058 See independent auditors' report. 39

43 Postlethwaite &Netterville A Professional Accounting Corporation Associated Offices in Principal Cities of the United States INDEPENDENT AUDITORS' 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 The Honorable Ron Animashaun and Members of the Village Council Village of Napoleonville, Louisiana We have audited, in accordance with auditing standards generally accepted in the United States of America and all the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities and each major fimd of the Village of Napoleonville, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the Village of Napoleonville's basic financial statements and have issued our report thereon dated June 30,2016. Internal Control Over Financial Reporting In planning and performing our audit of the fmancial statements, we considered the Village of Napoleonville, Louisiana's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village of Napoleonville, Louisiana's internal control. Accordingly, we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's fmancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over fmancial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village of Napoleonville, Louisiana'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 no instances of noncompliance or other matters that is required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's int^al mtgmal control and compliance. Accordingly, Accordmgly, this communication is not suitable for any other purpose. June Tiinfk 30,2016 Gonzales, Louisiana ' E. Cornerview Gonzales, LA Tel: Fax: