.LEGISL~.'i"P;~AUdiTOR RECEIVED FINANCIALSTATEMENTS. December31,202

Transcription

1 .LEGISL~.'i"P;~AUdiTOR RECEIVED TOWNOFHAUGHTON,LOUISIANA XO3JUL-2PH2:46 FINANCIALSTATEMENTS December31,202

2 TOWNOFHAUGHTON,LOUISIANA TableofContents IndependentAuditor'sReport Pa~e GeneralPurposeFinancialStatements: 1 CombinedBalanceShet-AlFundTypesandAcountGroups CombinedStatementofRevenues,Expenditures,andChangesin 2 CombinedStatementofReveunes,Expenditures,andChangesin FundBalances-AlGovernmentalFundTypes ~ 3 FundBalancesBudget(GAPBasis)andActual CombinedStatementofRevenues,Expenses,and GeneralandDebtServiceFundTypes 4 CombinedStatementofCashFlows-ProprietaryFundTypes ChangesinRetainedEarnings-ProprietaryFundTypes 5 NotestoFinancialStatements SuplementaryInformation: ScheduleofMayor'sandAldermen'sCompensation CombiningandIndividualFundStatements: andreimbursedexpenses~ 20 GovernmentalFunds: GeneralFund: BalanceShet StatementofRevenues,Expenditures,andChanges 21 DebtServiceFunds: infundbalances-budget(gapbasis)andactual i 2 CombiningBalanceShet CombiningStatementofRevenues,Expenditures,andChanges 23 infundbalances 24

3 TOWNOFHAUGHTON,LOUISIANA TableofContents (Continued) CombiningandIndividualFundStatements(continued) ProprietaryFund: EnterpriseFundWater,Sewer,andSanitationFtmds: CombiningBalanceShet CombiningStatementofRevenues,Expanses,andChanges 25 CombiningStatementofCashFlows inretainedearnings AditionalReportRequiredbyGovernmentAuditingStandards: ReportonComplianceandon/ntemalControlOverFinancial ReportingBasedonanAuditofFinancialStatements AuditFindings: PerformedinAcordancewithGovernmentAuditingstandards 29 ScheduleofAuditFindings CorectiveActionPlan ScheduleofPriorAuditFindings

4 SMITHPUGH&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS TheHonorableBilyMaxey,Mayor INDEPENDENTAUDITOR'SREPORT TheTownofHaughton,Louisiana andthemembersoftheboardofaldermenof WehaveauditedtheacompanyingeneralpurposefinancialstatementSandthecombiningandindividualfund financialstatementsofthetownofhanghton,louisiana,asofandfortheyearendeddecember31,202,aslistedin theacompanyingtableofcontents.thesegeneralpurposefinancialstatementsaretheresponsibilityofthetownof Haughton,Lonisiana'smanagement.Ouresponsibilityistoexpresanopiniononthesegeneralpurposefinancial statementsbasedonouraudit. tnouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inalmaterialrespects,the financialpositionofthetownofhanghton,louisiana,asofdenmber31,202,andtheresultsofitsoperationsand cashflowsofitsproprietaryfundtypesfortheyearendedinconformitywithacotmtingprinciplesgeneralyacepted intheunitedstatesofamerica.also,mouropinion,thecombiningandindividualfiredfinancialstatementsreferedto above,presentfairly,inalmaterialrespects,thefinancialpositionofeachoftheindividualfundsofthetownof Hanghton,Louisiana,asofDecember31,202,andtheresultsofoperationsofsuchfundsandcashflowsofindividual proprietaryfundtypesfortheyearthenendedinconformitywithacountingprinciplesgeneralyaceptedintheunited InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdatedMay13,203,~nour StatesofAmerica. considerationofthetownofhanghten,louisiana'sinternalcontroloverfinancialreportingandourtestsofits compliancewithcertainprovisionsoflaws,regulations,contractsandgrants.thatreportisanintegralpartofanaudit performedinacordancewithgovernmentauditingstandardsandshouldbereadinconjunctionwiththisreportin consideringtheresultsofouraudit. Ourauditwasperformedforthepurposeoforminganopiniononthegeneralpurposefinancialstatementstakenasa wholeandthecombiningandindividualfundfinancialstatements.theacompanyingfinancialinformationlistedas suplementaryinformationinthetableofcontentsispresentedforpurposesofaditionalanalysisandisnotarequired partofthefinancialstatementsofthetownofhanghton,louisiana.suchinformationhasbensubjectedtothe auditingproceduresapliedintheauditofdiegeneralpurpose,combining,andindividualfundfinancialstatements and,inouropinion,isfairlypresentedinalmaterialrespectsinrelationtothefinancialstatementsofeachrespective individualfundtakenasawhole. May13,203 gu~ 920PIEREMONTROAD,SUITE40SHREVEPORT,LOUISIANA (318)2-5701FAX(318)869-47~6

5 GENERALPURPOSEFINANCIALSTATEMENTS

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8 TOWNOFHAUGHTON,LOUISIANA CombinedStatementofRevenues,Expenditures,andChanges infundbalances-algovernmentalfundtypes YearEndedDecember31,202 Revenues: Propertytaxes Franchisetaxes Othertaxes Licensesandpermits Grantrevenue Intergovermnentai Interest Pinesandforfeits OtherTotalrevenues Expenditures: Generalgovement Publicsafety Stretsandrainage Capitaloutlays Debtservice: Principalretirement Interest OtherTotalexpenditures Exces(deficiency)ofrevenues overexpenditures Otherfinancingsources(uses): Cashshortage Transfersin Transfersout Netotherfinancingsources(uses) Excesofrevenuesoverexpenditures andotherfinancingsources(uses) Fundbalanceatbeginingofyear Fundbalanceatendofyear GovernmentalFundT General 2~350 49, , ,178 47,206 13,684 24,43 19, ,03, ,562 46,45 150, (17,4) 26,40 (37,687) (28,731) 168,40 1,401,624 Debt Service 42,497$ ,5 29,0 19, (4,325) 37,687 (151,024) (13,37) (17,62) 290,948 $1,570,024$173,286 Seacompanyingnotestofinancialstatements. Totals (MemorandumOnly) Capital Projects , , ,847 49, , , ,07 13,684 27,501 19, ,320, ,562 46,45 392, ,0 19, ,806 (17,4) 64,087 (18,71) 56,7 50, , , ,598 25,281 59, , , ,607 24, ,823 28,0 21,6357 1,059, (14,63) 64,794 (6,431) (142,068) (16,30) 50,738 1,692,572 5,437 1,637,135 $1,743,310$1,692,572 3

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10 TOWNOFItAUGHTON,LOUISIANA CombinedStatementofRevenues,Expenses,and ChangesinRetainedEarnings-ProprietaryFundTypes YearEndedDecember31,202 withcomparativetotalsforyearendeddecember31,201 Operatingrevenues: Chargesforservices Other Totaloperatingrevenues Operatingexpenses: Personalservices Contractualservices Supliesandmaterials Utilities Insurance Repairsandmaintenance Depreciation OtherTotaloperatingexpenses Operatingincome(los) Non-operatingrevenues(expenses): Interestincome Interestexpense Losondisposedofasets Totalnon-operatingrevenues(expenses) Incomebeforeotherfinancinguses Otherfinancinguses: Cashshortage Transfersin Transfersout Totalotherfinancinguses Netincome Amountchargedtocontributionacountsdepreciation Retainedearningsatbeginingofyear Retainedearningsatendofyear Seacompanyingnotestofinancialstatements. EnterpriseFunds ,472 6, ,274 14,692 17,646 67,60 21,348 42,735 34, , ,652 (67,378) 16,129 (13,065) (520) 201 2,54 (64,834) 521, (398) 151,024 (26,4O0) 124,26 59,392 87, ,241 13,742 46,39 23,42 43,105 40,07 139, ,215 36,468 (14,253) 2,215 32,430 (25,860) 28,725 (27~8) (24,23) 8,207 85,970 1,650,268 1,56,091

11 TOWNOFHAUGHTON,LOUISIANA CombinedStatementofCashFlows-ProprietaryFundTypes YearEndedDecember31,202 withcomparativetotalsforyearendeddecember31,201 Cashflowsfromoperatingactivities: Operatingincome Adjustmentstoreconcileoperatingincometonetcash providedbyoperatingactivities: Cashshortage Depreciatin (Increase)decreaseinacountsreceivable (Increase)decreaseinprepaidexpenses Increase(decrease)inacountspayable Increase(decrease)incustomers'deposits Totaladjustments Netcashprovidedbyoperatingactivities Cashflowsfromcapitalandrelatedfinancingactivities: Principalpayments Interestpaid Contributedcapital-procedsfromgrant Netcashusedforcapitalandrelatedfinancingactivities Cashflowsfromnoncapitalfmaneingactivities: Operatingtransfersin(out),net Netcashprovidedbynoncapitalfinancingactivities Cashflowsfrominvestingactivities: Interestincomereceived Paymentsforinvestments Procedsfrominvestments PurchaseofLxedasets Netcashprovidedbyinvestingaetivities Netincreaseincashandcashequivalents Cashandcashequivalentsatbeginingofyear (including$294,953inrestrictedcashin201) Cashandcashequivalentsatendofyear (including$501,541inrestrictedcashin202) Seacompanyingnotestofinancialstatements EnterpriseFunds (67,378)$ 10,215 (398) 147,16 7,868 (3,126) (36) 3, ,734 87,356 (19,095) (14,146) 414, ,51 212,27 212,27 1,31 (57,821) 56,056 (419,792) (410,246) 270,938 85,290 (25,860) 139,636 (13,09) (15) 1, ,219 12,434 (19,618) (14,253) 20,750 (13,121) 12,867 12,867 43,419 (201,615) 184,163 (158,74) (132,807) (20,627) 905,917 1,156,28$ 85,290 6

12 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December SumaryofSignificantAcountingPolicies TheTownofHaughton,Louisiana(Town),wasincorporatedApril29,1920,undertheprovisionsofthe TheTownofHaughton,Louisiana,complieswithGeneralyAceptedAcountingPrinciples(GAP).The LawrasonAct.TheTownoperatesundertheMayor-BoardofAldermenformofgovernment. Town'sreportingentityapliesalrelevantGovernmentAcountingStandardsBoard(GASB) pronouncements.proprietaryfundsaplyfinancialacountingstandardsboard(fasb)pronouncementsand AcountingPrinciplesBoard(APB)opinionsisuedonorbeforeNovember30,1989,unlesthose pronouncementsconflictwithorcontradictgasbpronouncements,inwhichcase,gasbprevails.gapas LocalGovernmentUnits,publishedbytheAmericanInstituteofCertifiedPublicAcountants. aplicabletogovernmentsalsoconformstotherequirementsoflouisianar.s.24:517andtotheguideset forthinthelouisianamunicipalauditandacountingguideandtotheindustryguide,auditsofstateand Thefolowingisasumaryofcertainsignificantacountingpolicies: A.~portmgEntity-Thisreportincludesalfundsandacountgroups,whicharecontroledby,ordependent onthetown'sexecutiveandlegislativebranches(themayorandboardofaldermen).controlbyor dependenceonthetownwasdeterminedonthebasisofbudgetadoption,taxingauthority,authorityto B.FundAcountingTheacountsoftheTownareorganizedonthebasisofundsandacountgroups,each isuedebt,electionorapoinhmentofgoverningbody,andothergeneraloversightresponsibility. ofwhichisconsideredaseparateacountingentity.theoperationsofeachfundareacountedforwitha separatesetofself-balancingacountsthatcompriseitsasets,liabilities,fundequity,revenues,and expenditures,orexpenses,asapropriate.governmentresourcesarealocatedtoandacountedforin individualfundsbaseduponthepurposeforwhichtheyaretobespentandthemeansbywhichspending activitiesarecontroled.thefolowingfundsandgroupsof~,countsareusedbythetown: GOVERNMENTALFUNDS GeneralFund-TheGeneralFundisthegeneraloperatingfundoftheTown.Alf'mancialresources, excepthoserequiredtobeacountedforinanotherfired,areacountedforinthegeneralfund. DebtServiceFund-TheDebtServiceFundisusedtoacountfortheacumulationofresourcesfor,and thepaymentof,generalong-termdebtincludingprincipal,interest,andrelatedcosts. CapitalProiectsFund-TheCapitalProjectsFundisusedtoacountforalfinancialresourcestobeused fortheacquisitionorconstructionofmajorcapitalfacilitiesotherthanthosefinancedbyproprietaryfunds. TheCapitalProjectsFund'srevenuesandexpendituresfortheyearendedDecember31,202,represent projectwasadedtoproperty,plantandequipmentinthesewerfundforatotalof$414,793. theactivityfortheirfiscalyear20louisianacomunitydevelopmentblockgrantforsewer improvements.theseimprovementswerecompletedin202andoficialyclosedoutmarch203.this PROPRIETARYFUNDS TheProprietaryFundisusedtoacountfortheTown'songoingorganizationsandactivitieswhichare similartothoseoftenfoundintheprivatesector.theproprietaryfundisacountedforonacapital maintenancemeasurementfocus;thatisthemeasurementfocusisupondeterminationofnetincome.

13 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31,202 SumaryofSignificantAcountingPolicies(Continued) B.FundAcountin~(Continued/ PROPRIETARYFUNDS(CONTINUED) EnterpriseFunds-EnterpriseFundsareusedtoacountforoperations(a)thatarefinancedandoperatedin amanersimilartoprivatebusinesenterpriseswherethecosts(expenses,includingdepreciation)of providingodsorservicestothegeneralpubliconacontinuingbasisarefinancedthroughusercharges; or(b)wherethegoverningbodyhasdecidedthatperiodicdeterminationofrevenuesearned,expenses incured,and/ornetincomeisapropriateforcapitalmaintenance,publicpolicy,managementcontrol, acountability,orotherpurposes. ACOUNTGROUPS AcountgroupsareusedtoestablishacountingcontrolandacountabilityfortheTown'sgeneralfixed asetsandgeneralong-termobligations.thefolowingarethetown'sacountgroups: GeneralFixedAsetsAcountGroup-Thisacountgroupisusedtoacountforfixedasetsusedin governmentalfundtypeoperationsforcontrolpurposes.'alfixedasetsarevaluedathistoricalcostor estimatedhistoricalcostifactualhistoricalcostisnotavailable.donatedfixedasetsarevaluedatheir estimatedfairvalueonthedateofdonation.nodepreciationisrecordedongeneralftxedasets. GeneralLong-TermDebtAcountGroup-Thisacountgroupisestablishedtoacountforlong-term C.BasisofAcounimg-Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedby obligationstobefinancedfromgovernmentalfunds. itsmeasurementfocus.algovementalfundsareacountedforusingacurentfinancialresources measurementfocus.withthismeasurementfocus,onlycurentasetsandcurentliabilitiesgeneralyare includedonthebalanceshet.operatingstatementsofthesefundspresentincreases(i.e.,revenuesand otherfinancingsources)andecreases(i.e.,expendituresandotherfinancinguses)inetcurentasets. Alproprietaryfundsareacountedforonaflowofeconomicresourcesmeasurementfocus.Withthis measurementfocus,alasetsandliabilitiesasociatedwiththeoperationofthesefundsareincludedonthe balanceshet.fundequity(i.e.,netotalasets)isegregatedintocontributedcapitalandretainedearnings components.proprietaryfund-typeoperatingstatementspresentincreases(e.g.,revenues)andecreases (e.g.,expenses)inetotalasets. Themodifiedacrualbasisofacountingisusedbyalgovernmentalfundtypes.Underthemodified acrualbasisofacounting,revenuesarerecognizedwhensusceptibletoacrual(i.e.,whentheybecome bothmeasurableandavailable)."measurable"meanstheamountofthetransactioncanbedetermined,and "available"meanscolectiblewithinthecurentperiodorsonenoughthereaftertebeusedtopay liabilitiesofthecurentperiod.thegovernmentconsiderspropertytaxesavailableiftheyarecolected within60daysafteryearend.aone-yearavailabilityperiodisusedforevenuerecognitionforalother governmentalrevenues.expendituresarerecordedwhentherelatedfundliabilityisincured. Thoserevenuesusceptibletoacrualarepropertytaxes,franchisetaxes,interestrevenueandchargesfor services.revenuesfromfines,permits,andlicensesaretrotsusceptibletoacrualbecausegeneralythey arenotmeasurableuntilreceivedincash.

14 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31,202 SumaryofSignificantAcountingPolicies(Continued) C.BasisofAcountine(Continued) Theacrualbasisofacountingisutilizedbytheproprietaryfundtype.Underthismethod,revenuesare recordedwhenearnedandexpensesarerecordedathetimeliabilitiesareincured. Thepreparationofmancialstatementsgeneralyrequiresmanagementomakestimatesandasumptions thatafecthereportedamountsofasetsandliabilitiesandisclosureofcontingentasetsandliabilitiesat thedateofinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereporting Dperiod.Actualresultscouldiferfromthosestimates. datareflectedinthesefinancialstatements TheTownfolowstheseproceduresinestablishingthebudgetary 1.TheMayorpreparesaproposedbudgetandsubmitsametotheBoardofAldermenolaterthan 2.Asumaryoftheproposedbudgetispublishedandthepublicnotifiedthatheproposedbudgetis fiftendayspriortothebeginingofeachfiscalyear. 3.Apublichearingisheldontheproposedbudgetatleastendaysafterpublicationofthecalforthe availableforpublicinspection.athesametime,apublichearingiscaled. 4.Aftertheholdingofthepublichearingandcompletionofalactionecesarytofinalizeand hearing. implementhebudget,thebudgetisadoptedthroughpasageofanordinancepriortothe 5.Thebudgetordinanceistructuredsuchthatrevenuesarebudgetedbysourceandapropriationsare comencementofthefiscalyearforwhichthebudgetisbeingadopted, budgetedbydepartmentandbyprincipalobjectofexpenditure.theboardofaldermenmayreviseor amendthebudgetatitsdiscretionduringlegalyconvenedsesions.managementmayamendthe 6.TheTownutilizesformalbudgetaryintegrationasamanagementconlroldeviceforalfunds. budgetonlybelowthedepartmentlevel. E.Investments-Alinvestmentsareinterest-bearingdepositswithoriginalmaturitydatesinexcesofthre monthsandarestatedatcostwhichaproximatesmarketvalue.thetown'sinvestmentscomplywith F.Inventories-InventoryofsupliesintheProprietaryFundisnotmaterialandischargedtoperationsas LouisianaStatutes(LSAR.S.3:295). purchased.

15 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31,202 SumaryofSignificantAcountingPolicies(Continued) G.BadDebtsUncolectibleamountsdueforthecustomers'utilityandadvaloremtaxesreceivablesare recognizedasbadebtsthroughthestablishmentofanalowanceacountathetimeinformation becomesavailablewhichwouldindicatetheuncolectibiityoftheparticulareceivable.provisionfor uncolectibleutilityreceivableshasbendemednecesary.thealowanceforuncolectibleadvalorem H taxeswas$1,763and$1,763atdecember31,202and201,respectively. ĠENERALFIXEDASETSACOUNTGROUP FixedasetsingovernmentalfundtypeoperationsareacountedforintheGeneralFixedAsetsAcount Group,ratherth~ningovernmentalfunds.Pubicdomain("infrastructure")generalFixedasets,including roads,bridges,curbsandguters,stretsandsidewalks,drainagesystemsandlightingsystemsarenot capitalizedalongwithothergeneralfixedasets.nodepreciationhasbenprovidedonsuchasetṣ WATERANDSEWERSYSTEM Aditionstotheutilityplantinservicearerecordedatcostor,ifcontributedproperty,atheirestimatedfair valueatimeofcontribution.repairsandmaintenancearerecordedasexpenses;renewalsandbeterments arecapitalized.thesaleordisposalofixedasetsisrecordedbyremovingcostandacumulated depreciationfromtheacountsandchargingtheresultingainorlostoincome. Depreciationhasbencalculatedoneachclasofdepreciablepropertyusingthespraight-linebasis,with one-halfyear'sdepreciationcalculatedintheyearofacquisition.thestimatedservicelivesbyasetype areasfolows: Building WaterReservationandTreatmentPlant TransmisionandDistributionSystem, Years Equipment 3&10Years 10-40Years sickpaybenefits. Noliabilityisrecordedfornonvestingacumulatingrightstoreceivevacationor K.ComparativeData-Comparativetotalsfortheprioryearhavebenpresentedintheacompanyingeneral purposefinancialstatementsinordertoprovideanunderstandingofchangesinthetown'sfinancial positionandoperations.however,presentationofprioryearamountsbyfundtypehasnotbenpresented ineachofthestatementsincetheirinclusionswouldmakethestatementsundulycomplexandificulto read. 10

16 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December SumaryofSignificantAcountingPolicies(Continued) L. M Totalcolumnsonthecombinedstatementsarecaptioned "MemorandumOnly"toindicatethatheyarepresentedonlytofacilitatefinancialanalysis.Datainthese columnsdonotpresentfinancialposition,resultsofoperations,orchangesinfinancialpositionin conformitywithgeneralyaceptedacountingprinciples.neitherisuchdatacomparabletoa consolidation.ituerfundeliminationshavenotbenmadeintheagregationofthisdatạ Forthepurposesofthestatementofcashflows,theTownconsidersalhighly liquidinvestments(includingrestrictedasets)withanoriginalmaturityofthremonthsorleswhen purchasedtobecashequivalents. N.RefundableDepositsTheWaterFundoftheTownrequirescustomerstoplaceadepositbeforeserviceis rendered.thesemoniesareconsideredrestrictedandarehelduntilthecustomerdiscontinueservice. O.Reclasifications-Certain201amountswerereclasifiedtoconformto202presentation. 2.CashandCertificatesofDeposit: AtDecember31,202,theTownhascashandcertificatesofdeposit(bokbalances)of$2,953,13asfolows: GeneralFund DebtServiceFund CapitalProjects EnterpriseFunds Cash $1,315,745 97,0381 1,156,28 $2,569,012 Certificatesof Deposit $ 160,174 23,927 $ Total $1,475,919 97,0381 1,380~15 $2,953,13 Thesedepositsarestatedatcost,whichaproximatesmarket.Understatelaw,thesedeposits(ortheresulting bankbalances)mustbesecuredbyfederaldepositinsuranceorthepledgeofsecuritiesownedbythefiscal agentbank.themarketvalueofthepledgedsecuritiesplusthefederaldepositinsurancemustataltimesequal theamountondepositwiththefiscalagent.thetownhasdepositbalances(colectedbankbalances)of $2,94,238atDecember31,202.Thesedepositsaresecuredfromriskby$10,0ofederaldeposit insurance(gasbriskcategory1)and$2,894,238ofpledgedsecuritiesheldbythecustodialbankinthename ofthetown(gasbriskcategory3). InvestmentpolsareunderthecustodyoftheTownClerk.Investingisperformedinacordancewith investmentpoliciescomplyingwithstatestatutesandthetowncharterṗoledfundsmaybeinvestedin:(1) directobligationsoftheunitedstatesgovernmentothepaymentofwhichthefulfaithandcreditofthe UnitedStatesgovernmentispledged,(2)certificatesofdepositatsavingsandloanasociationsandfederaly insuredbankswhensecuredbyaceptablecolateral,and(3)savingsacountsatsavingsandloanasociations andbanks,tothextentfulyinsured.

17 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December3I InterfundReceivables,Payables: Asumaryofinterfundreceivablesandpayablesisasfolows: Interfund GeneralFund Receivable Interfund DebtService $ 5,395 Payable CapitalProjectsFund 65,47 EnterpriseFunds 8,283 4.RestrictedAsets: $ ,16 RestrictedasetsconsistingofcashandcertificatesofdepositmaturinginmorethanthremonthsatDecember 31,202,areasfolows: DebtServiceFund: SalesTaxBondSinkingFund SalesTaxBondReserveFund CurentBondPaymentDue 20,904 EnterpriseFund: Total 12, WaterRevenueBondsSinkingFund WaterRevenueBondsReserveFund 19,391 SewerContingencyFund CustomerDeposits ContractDeposits 412,092 38,736 26,083 5.FixedAsets: Total $569,362 63, Asumaryofchangesingeneralfixedasetsisasfolows: December31, Balance 201 A&litiens LandBuildingsandimpmvements 38,521$ Equipment ,0$ Deletions December31 Balance 202 Total $1,783,508 1~090r ,297 $ 656, $ 3.125$ ,521

18 TOWNOFItAUGHTON,LOUISIANA NotestoFinancialStatementS December31,202 5.FixedAsets(Continued): Asumaryofproprietaryfund-typeProPerty,plant,andequipmentasofDecember31,202,isasfolows: Land Buildings $ Water Fund WaterSystem 17,208,362 Sewer Fund SewerSystem 1,85,703 10,359 $17,20 Equipment 104,32 Property,plantandequipment-net Lesactmulatedepreciation (1,132,213) 2,015,597 2,513,02 2,617,695 83,384 $1,532,392 (17085,303) 94,314 1,85,703 18,721 2,513,02 4,63, Long-TermObligations: $2,415,76 (2,217,516) ThefolowingisasumaryofbondtransactionsfortheyearendedDecember31,202: BondspayableatJanuary1,202 Debtretired-serialbonds $20,265 Proprietary Revenue Fund- General BondpayableatDecember31,202 $201,170 (19,095) $40,0 $30,0 Obligation (10,0) $301,0 Revenue (19,0) $561,265 Total BondspayableatDecember31,202,arecomprisedofthefolowingisues $282~0 $513,170 (48,095) $125,0,1986publicimprovementserialbondsdueinanualinstalmentsof$5,0 to$10,0throughmarch1,206;interestat8.0%to12.0%,colectibleonoraider March1,197. $30,0 RevenueBonds $423,0,SalesTaxRefundingBonds,Series194,dueinanualinstalmentsof $12,0to$34,0throughNovember1,2013;interestat3.2%to6.0%. $32,0waterevenuebonds,SeriesAandB,datedFebruary1,193~dueinanual 282,0 instalmentsaproximately$28,473;includinginterestoyield6.26%,maturing February1,2013. TotalBondsPayable I3

19 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31,202 Long-TermObligations(Continued) TheanualrequirementstoamortizealdebtoutstandingasofDecember31,202,includinginterestpayments of$189,43areasfolows: December YearEnding 203 BondsSeries SalesTax Refunding 194 ObligationProprietary General BondsFundSeries $35,108$12,10$32,596$79,804 03/01/06A&B Total 35, ,138 1,260 31,936 78, ,025 5,630 31,261 72,029 35,793 5,210 30,561 29,861 70,796 65,654 Totals $390,73~$34,20$27,679$702, , ,464 35,976 Theamountobeprovidedforetirementofgeneralong-termdebtisasfolows: SalesTax Refunding Netamountobeprovidedfor DebtServiceCashBalance BondsPayable $ BondsSeries ,736 General Obligation Bonds 7.SinkingFundRequirements retirementofgeneralong-termdebt (282,0) $ 03/01/06 (30,0) 34,302$ Total (312,0) 97,038 $(219,2642$ 4,302$(214,962) UnderthetermsoftheSalesTaxRefundingBonds,Series194,alprocedsderivedfromthelevyand A.Thepaymentofalreasonableandnecesaryexpensesofcolectionandadministrationofthetax. colectionoftheonepercent(1%)salestaxaretobeusedinthefolowingorderorpriority: B.ThestablishmentandmaintenanceofaSalesTaxBondSinkingFund-194suficientinamountopay promptlyandfulytheprincipalofandtheinterestonthebondsastheybecomepayablebytransfering fromthesalestaxfundtothesinkingfundonorbeforethe20thdayofeachmonth,asumequaltonetwelfth(1/12)oftheprincipalandone-sixth(1/6)oftheinterestfailingdueonthenextpaymentdate. C.ThestablishmentandmaintenanceofaSalesTaxBondReserveFund194bytransferingalumpsum of$12,0and,thereafter,monthlyfromthesalestaxfundtothereservefundasumatleastequalto fivepercent(5%)oftheamountrequiredtobepaidmonthlyintothesinkingfund,andtocontinueuntil suchtimeastherehasbenacumulatedinthereservefundsumsinanamountequaltothetenpercent (10%)oftheprocedsofthebonds($42,30)orthehighestcombinedprincipalandinterestrequirements foranysucedingbondyear($36,040).themoneyistoberetainedsolelyforthepurposeofpayingthe principalofandinterestonbondspayablefromthesinkingfundastowhichtherewouldotherwisebe default.

20 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December SinkingFundRequirements(Continued) D.AlmoneyremainingintheSalesTaxFundonthe20thdayofthemonthinexcesoftheserequirements shalbeconsideredsurplus.suchsurplusmaybeusedbythetownforanyofthepurposesforwinchthe impositionofthetaxisauthorizedorforthepurposeofretiringinstalmentsofprincipalofthebondin Underthetermsofthe193SeriesAandBwaterevenuebonds,thefolowingfundsaretobemaintainedwith advanceoftheirpaymentdate. respectothebonds. A.AsprovidedintheResolution,alincomeandrevenuesearnedorderivedfromtheoperationoftheSystem shalbedepositedasthesamemaybecolectedintherevenuefund.outofthefundsondepositinthe RevenueFund,afterthereasonableandnecesaryexpensesofoperatingandmaintainingtheSystemhave benpaid,moniesaretobetransferedtothesinkingfund,thereservefundand/orthecontingencies B.TheSinkingFundisdesignedtoachieveapropermatchingofrevenuesandebtserviceonthebondsand FundasprovidedintheResolution. anyaditionalparitybondswithineachbondyear(endingfebruary1).amountstransferedfromthe RevenueFundandtheReserveFundandepositedintheSinkingFundwilbeapliedtothenextpayment ofprincipalorinterestonthebondsfolowingsuchtransfer.theisuerisrequiredbytheresolutionto makemonthlydepositsintothesinkingfund,thereservefundandthecontingencyfundfromthenet Revenues,nolaterthanthe20thdayofeachmonthintheamountof$4,202for202.Alamounts depositedinthesinkingfundarexpectedtobedeletedatleastonceayearonfebruary1(theprincipal andinterestpaymentdateforthebonds),exceptforareasonablecaryoveramountwhichwilnotexced thegreaterof(l)oneyear'searningsonsuchfunds,or(2)1/12oftheanualdebtserviceonthebondsand C.TheReserveFundismaintainedsolelyforthepurposeofpayingtheprincipalofandtheinterestonbonds anyaditionalparitybondspayabletherefrom. payablefromthesinkingfundastowinchtherewouldotherwisebedefault(exceptsuchamountsasmay bepayabletotheunitedstatesofamericasarebateofarbitragepursuantosection148(f)ofthecode). Asumof$10,0depositedthereinsimultaneouslywiththedeliveryofthebondsandthereafteramonthly paymentatleastequaltofivepercent(5%)ofthemonthlysinkingfundpaymentuntilanamountequalto D.TheContingenciesFundisestablishedtocareforextensions,aditions,improvements,renewalsand thereservefundrequirementisacumulatedtherein. replacementsnecesarytoproperlyoperatethesystem,bytransferingfromthesystemfundonorbefore the20thdayofeachmonthofeachyearasumof$148.suchpaymentsintothecontingenciesfundareto continueoverthelifeofthebonds.inaditiontocaringforextensions,aditions,improvements,renewals andreplacementsnecesarytoproperlyoperatethesystem,themoneyinthecontingenciesfundmayalso beusedtopaytheprincipalofandtheinterestbonds,includinganyaditionalparipasubondsisued hereafterinthemanerprovidedbytheresolution,forthepaymentofwinchthereisnotsuficientmoney inthesinkingfundorreservefund.

21 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December3l,202 8.ContributedCapital: TheEnterpriseFundreceivescontributionsfromfederalandstatesourcesforthepurposesofacquiringor constructingcapitalfacilities.theaditionandsourceofcontributedcapitalduringtheyearendeddecember folows: Contributedcapital-January1,202 Aditions-20LCDBG-sewerimprovementproject Deductions-Depreciationexpensechargedtocontributedasets $1,35, ,793 9.AdValoremTaxes: Contributedcapital-December31,202 $1,62,923 (87,274). AdvatoremtaxesatachasanenforceablelienonpropertyasofJanuary1ofeachyear.Taxesareleviedbythe TowninSeptemberorOctoberandareactualybiledtothetaxpayersinNovemberofthesameyear.Biled taxesbecomedelinquentonjanuary1ofthefolowingyear.revenuesfromadvaloremtaxesarebudgetedin theyearbiled. TheTownbilsandcolectsitsownpropertytaxesusingtheasesedvaluesdeterminedbythetaxasesorof BosierParish. FortheyearendedDecember31,202,taxesatherateof13.26milswereleviedonpropertywithasesed valuationstotaling$4,890,30.ofthetotalmilagelevied,4.57milsisavailableforgeneralpurposesand8.69 I0.RetirementComitments: milsisdedicatedforetirementofgeneralobligationbonds. SubstantialyalemployesoftheTownofHanghton,Louisiana,areithermembersoftheMunicipalPolice EmployesRetirementSystemofLouisiana,MunicipalEmployesRetirementSystemofLouisiana,or Firefigbter'sRetirementSystemofLouisianawhicharestatewideretirementsystems.Thesesystemsarecost sharing,multiple-employerdefmedbenefitpensionplansadministeredbyseparateboardsoftrustes.pertinent informationrelativetotheseplansareasfolows: MUNICIPALPOLICEMPLOYESRETIREMENTSYSTEMOFLOUISIANA(SYSTEM) Alful-timepolicedepartmentemployesengagedinlawenforcementarerequiredtoparticipateinthe System.Employeswhoretireatorafterage50withatleast20yearsofcreditableserviceoratorafter age5withatleast12yearsofcreditableservicearentitledtoaretirementbenefit,payablemonthlyfor life,equalto31/3%oftheirfinal-averagesalaryforeachyearofcreditableservice.final-averagesalaryis themploye'saveragesalaryoverthe36consecutiveorjoinedmonthsthatproducethehighestaverage. Employeswhoterminafewithatleastheamountofcreditableservicestatedabove,andonotwithdraw theiremployecontributions,mayretireatheagespecifiedaboveandreceivethebenefitacruedtotheir dateoftermination.thesystemalsoprovidesdeathandisabilitybenefits.benefitsarestablishedor amendedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreporthatincludesfinancialstatementsand requiredsuplementaryinformationforthesystem.thatreportmaybeobtainedbywritingtothe MunicipalPoliceEmployesRetirementSystemofLouisiana,8401UnitedPlazaBoulevard,BatonRouge, Louisiana ,orbycaling(25)

22 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31, RetirementComitments(Continued): MUNICIPALPOLICEMPLOYESRETIREMENTSYSTEMOFLOUISIANA(SYSTEM) (CONTINUED) B.FundingPolicy Planmembersarerequiredbystatestatutetocontribute7.5%oftheiranualcoveredsalaryandtheTown ofhaughtonisrequiredtocontributeatanactuarialdeterminedrate.thecurentrateis9.0%ofanual coveredpayrol.thecontributionrequirementsofplanaembersandthetownofhanghtonare establishedandmaybemendedbystatestatute.asprovidedbyr.s.1:103,themployercontributions aredeterminedbyactuarialvaluationandaresubjectochangeachyearbasedontheresultsofthe valuationforthepriorfiscalyear.thetownofhaughton'~cmatrthutionstothesystemfortheyearsending December31,202,201,and20,were$10,416,$10,969,and$1,761,respectively,equaltothe MUNICIPALEMPLOYESRETIREMENTSYSTEMOFLOUISIANA(SYSTEM) requiredcontributionsforeachyear. TheSystemiscomposedoftwodistinctplans,PlanAandPlanB,withseparateasetsandbenefit provisions.alemployesofthetownaremembersofplana. Alpermanentemployesworkingatleast35hoursperwekwhoarenotcoveredbyanotherpensionplan andarepaidwholyorinpartfromtownfundsandalelectedtownoficialsareligibletoparticipatein thesystem.underplana,employeswhoretireatorafierage60withatleast10yearsofcreditable service,atorafterage5withatleast25yearsofcreditableservice,oratanyagewithatleast30yearsof creditableservicearentitledtoaretirementbenefit,payablemonthlyforlife,equalto3%oftheirfinalaveragesalaryforeachyearofcreditableservice.final-averagesalaryisthemploye'saveragesalary overthe36consecutiveorjoinedmonthsthatproducethehighestaverage.employeswhoterminatewith atleastheamountofcreditableservicestatedabove,andonotwithdrawtheiremployecontributions, mayretireatheagespecifiedaboveandreceivethebenefitacruedtotheirdateoftermination.the Systemalsoprovidesdeathandisabilitybenefits.Benefitsarestablishedoremendedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreporthatincludesfinancialstatementsand requiredsuplementaryinformationforthesystem.thatreportmaybeobtainedbywritingtothe MunicipalEmployesRetirementSystemofLouisiana,7937OficeParkBoulevard,BatonRouge, B.FundingPolicy Louisiana70809,orbycaling(25) UnderPlanA,membersarerequiredbystatestatutetocontribute9.25%oftheiranualcoveredsalaryand thetownofhanghtonisrequiredtocontributeatanactuarialydeterminedrate.theratewas7.0%for periodsthroughjune30,202andthecurentmtefectivejuly1,202is8.0%ofanualcovered payrol.contributionstothesystemalsoincludeone-fourthof1%(exceptorleansandeastbatonrouge parishes)ofthetaxeshowntobecolectiblebythetaxrolsofeachparish.thesetaxdolarsaredivided betwenplanaandplanbbasedproportionatelyonthesalariesoftheactivemembersofeachplan.the contributionrequirementsofplanmembersandthetownofhaughtonarestablishedandmaybe emendedbystatestatute.asprovidedbyr.s.1:103,themployercontributionsaredeterminedby actuarialvaluationandaresubjectochangeachyearbasedontheresultsofthevaluationfortheprior fiscalyear.thetownofhanghtonbeganthisretirementplanin201andcontributionstothesystem

23 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December RetirementComitments(Continued) MUNICIPALEMPLOYESRETIREMENTSYSTEMOFLOUISIANA(SYSTEM)(CONTINUED) B.Fundin~Policy(Continued/ underplanafortheyearsendingdecember31,202,201,and20were$13,95,$12,063,and$7,359 respectively,equaltotherequiredcontributionsforeachyear. FIREFIGHTERS'RETIREMENTSYSTEMOFLOUISIANA A.PlanDescription MembershipintheLouisianaFirefighters'RetirementSystemismandatoryforalful-timefirefighters employedbyamunicipality,parish,orfireprotectiondistricthatdidnotenactanordinancebeforejanuary 1,1980,exemptingitselfromparticipatingintheSystem.EmployesareligibletoretireatoraRerage 5withatleast12yearsofcreditableserviceoratorafterage50withatleast20yearsofcreditable service.uponretirement,membersarentitledtoaretirementbenefit,payablemonthlyforlife,equalto3 1/3%oftheirfinal-averagesalaryforeachyearofcreditableservice,notoexced10%oftheirfinalaveragesalary.Final-averagesalaryisthemploye'saveragesalaryoverthe36consecutiveorjoined monthsthatproducethehighestaverage.employeswhoterminatewithatleast12yearsofserviceando notwithdrawtheiremployecontributionsmayretireatorafterage5(oratorafterage50withatleast20 yearsofcreditableserviceatermination)andreceivethebenefitacruedtotheirdateoftermiuation.the Systemalsoprovidesdeathandisabilitybenefits.Benefitsarestablishedoramendedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreporthatincludesf'mancialstatementsand requiredsuplementaryinformationforthesystem.thatreportmaybeobtainedbywritingtothe Firefighters'RetirementSystem,PostOficeBox94095,CapitolStation,BatonRouge,Louisiana70804, orbycaling(25) B.FundingPolicy Planmembersarerequiredbystatestatutetecontribute8.0%oftheiranualcoveredsalaryandtheTown ofhaughtonisrequiredtocontributeatanactuarialydeterminedrate.theratewas9.0%forperiods throughnovember202andthecurentratefectivedecember1,202,is18.25%ofanualcovered payrol.thecontributionrequirementsofplanmembersandthetownofhaughtonarestablishedand maybemendedbystatestatute.asprovidedbyr.s.1:103,themployercontributionsaredetermined byactuarialvaluationandaresubjectochangeachyearbasedontheresultsofthevaluationfortheprior fiscalyear.thetown'scontributionstothesystemfortheyearsendingdecember31,202,201,and 20,was$3,51,$1,816,and$2,89,respectively,equaltotherequiredcontributions. 1.InterfundOperatingTransfers: Individualfundoperatingtransfersforfiscalyear202areasfolows GeneralFund DebtServiceFund WaterFund SewerFund SanitationFund Totals TransferIn $ 26,40 37, ,024 TransferOut $ 37, ,024 12,0 12, $215,1$215,1

24 TOWNOFHAUGHTON,LOUISIANA NotestoFinancialStatements December31, ComitmentsandContingencies: TheTownisexposedtovariousrisksoflosrelatedtotorts;theftof,damagetoandestructionofasets;erors andomisions;injuriestoemployes;andnaturaldisasters.thetowncariescomercialinsuranceforal risksoflos,includingworkers'compensationandemployehealthandacidentinsurance.setlementshave notexcededinsurancecoverageinanyofthepasthrefiscalyears. TheTownparticipatesincertainfederalandstateasistedgrantprogramsṪheseprogramsaresubjecto programcomplianceauditsbythegrantorsortheirepresentatives.anyliabilityforeimbursementwhichmay ariseastheresultoftheseauditsisnotbelievedtobematerial. TheTownisthedefendantinvariouslawsuitsarisingprincipalyinormalcourseofoperationṣIntheopinion oftheadministration,theoutcomeoftheselawsuitswilnothaveamaterialadversefectontheacompanying 13.On-BehalfPayments: combinedfinancialstatementsandacordingly,noprovisionforloseshasbenrecorded. ThreTownpolicemployesreceivedatotalof$10,950inpolicesuplementalpayandoneTownfireman employereceivedatota~of$1,630infiremensuplementalpayfromthestateoflouisiana.thetownis responsibleforwitholdingtaxesfromthesemployesandpayingthetown'smatchingportionofsocial securitytaxesfortheamountofsuplementalpayreceived.thetownmustrecognizethisuplementalpay receivedbythemployesasrevenuesandexpendituresofthetown.therevenueisreportedinthegeneral 14.CashShortage: FundunderintergovernmentalrevenuesandthexpenditureisreportedinthePoliceandFireDepartments. FortheyearendedDecember31,201,certaindiscrepancies(cashshortages)werereportedatestimated amountsasincreasesintherelatedrevenueacountsandascorespondingchargestocashshortagexpense. RevenuefortheGeneralFund(fresandforfeits)wasincreasedbyanestimatedamountof$14,63while revenuefortheenterprisefunds(chargesforservices)wasincreasedbyanestimatedamountof$25,860. ThesecashshortageswereinvestigatedbytheStateofLouisianaLegislativeAuditorandreportedtotheTown onseptember18,202.theireportcoveredtheperiodfrommarch201tomay202.thetotalostothe Townreportedbythisinvestigationduringthisperiodwas$58,365.Ofthisamount,atotalof$40,523inloses wasreportedinour201auditleaving$17,842intotalosesfor SubsequentEvents: InJanuary203,theTownrecovered$25,0fromthe201202cashshortageloseṣThisamountwas distributedtotheapropriatefundsbasedontotalosesineachfund. InApril203,theboardiscusedthecontinuousproblemofnotbeingincompliancewiththemonthlysewer testings.townmayposiblyhavetospendasignificantamountofmoney(aproximately$10,0)foranew aerationsystemtocorectheproblem. AlsoinApril203,thetownpurchasedtwovehicles.Oneforthemaintenancedepartmentintheamountof $15,159andanotheroneforthefiredepartmentintheamountof$20,90.

25 SUPLEMENTARYINFORMATION

26 TOWNOFHAUGHTON,LOUISIANA CompensationandReimbursedExpenses FortheYearEndedDecember31,202 ScheduleofMayor'sandAldcrmen's MayorMaxey CompensationExpenses Payrol Reimbursed AldermanHolis 15,90$ AlderwomanMcGe 4,20 2,565$ Total AldermanHicks ,465 AldermanAnderson 4, ,541 AldermanWinfield 391 4,615 4,591 Totals $ 36,90 4, $ 4,591 41,394

27 COMBININGANDINDIVIDUALFUNDSTATEMENTS

28 TOWNOFHAUGHTON,LOUISIANA GeneralFund December31,202 BalanceShet withcomparativetotalsfordecember31, CashCertificatesofdeposit 1,315,745$ Receivables(netwhereaplicable,ofalowances 160,174 1,240, ,757 foruncolectibles): Acounts Prepaidexpenses Acruedinterest 39,646 1,546 7,327 Duefromotherfunds 6,246 5,169 Totalasets 5,395 4,787 1,578,752$ 1,410, Acountspayable Acruedpayroliabilities 7,97$ Duetotherfunds 731 FundBalances: Totaliabilities 8,728 6,0981,0471, Unreserved Totaliabilitiesandfundbalances Totalfundbalances 1,570,024 1,578,752$ 1,401,624 1,410,367

29 TOWNOFHAUGHTON,LOUISIANA GeneralFund StatementofRevenues,Expenditures,andChanges infundbalances-budget(gapbasis)andactual FortheYearEndedDecember31,202 withcomparativeaetualamountsfortoeyearendeddecember31,201 Revenues: Propertytaxes Franchisetaxes Othertaxes Licensesandpermits Grantrevenue Intergovernmental Interest Finesandforfeits OtherTotalrevenues Expenditures: GeneralGovernment: PublicSafety: Policedepartment Firedepartment Totalpublicsafety Stretsandrainage Capitaloutlays Totalexpenditures Exces(deficiency)ofrevenunsover expenditures Otherfinancingsources(uses): Cashshortage Transfersin Transfersout Netotherfinancingsources(uses) Exces(deficiency)ofrevenuesover expendituresandotherfinancinguses Fundbalanceatbeginingofyear Fundbalanceatendofyear 25,0$ 40,0 419,0 90,0 29,50 28,90 18,0 8,0 3, ,60 282,10 16,0 48,10 20,40 80,10 (138,70) 28,80 (37,01 Actual Variance- Favorable ~Uafavorable) 2,350$ 49, ,168 i26,178 47,206 13,684 24,43 19,474 14, , , /50,254 (2,650) 9,810 96,168 36,178 I7,706 84,784 6,43 31,474 1, ,038 (34,147) , Ac~ 19,568 50, , ,720 31,605 25,28I 50, ,032 9, , A68 273,42 18, ,923 60,749 (8,749) 213, , (17,4) 26,40 (37,687) (17,4) (2,40) (687) 836,821 75,5 (14~63) 27,08 (6,431) (8,20) (28,731) (20,531) (54,06) (146,90) 1,401,624 1,254, ,40 1,401,624 $1,570,024 21,549,380, ,30$1,401,624

30 TOWNOFHAUGHTON,LOUISIANA CombiningBalanceShet DebtServiceFunds withcomparativetotalsfordecember31,201 December31,202 Obligation General Asets Bonds Revenue Totals Bonds CashReceivables(netwhereaplicable,of alowancesforuncolectibles): $24,302$29,813$54,15$208,48 Restrictedaset_s: Acounts 10,801 10,801 10,746 Duefi'omotherfimds Cash 10,0 Totalasets 65,47 32,923 42,923 10,50$,62,736$173,286$290, ,275 30,479 Duetotherfimds FundBalances: Totalfiabilities $ $ $ Reservedfordebtservice Totalfundbalances Totaliabilitiesandfundbalances 10,50 62, , ,50$62,736$173,286$290,948

31 TOWNOFHAUGHTON,LOUISIANA DebtServiceFunds CombiningStatementofRevenues,Expenditures, andchangesmfundbalances FortheYearEndedDecember31,202 withcomparativetotalsfortheyearendeddecember31,201 Revenues: Propertytaxes Interest Totalrevenues Expenditures: Debtservice: Principalretirement Interest Other Totalexpenditures Exces(deficiency)ofrevenues overexpenditures Otherfinancingsources: Transfersin Transfersout Totalotherfinancingsources Excesofrevenuesandothersourcesover expenditures Fundbalanceatbeginingofyear Fundbalanceatendofyear General Obligation Bonds42,497$ 2,171 4,68 10,0 2, ,290 31,378 (151,024) (151,024) (19,646) Totals Revenue Bonds $ 19,0 17, , ,984 60,752 42,497$ 3,058 45,5 29,0 19, (4,325) 37,687 (151,024) (13,37 (17,62 290,948 37,209 8,93 46,202 28,0 21, ,020 37,706 37,706 3,g ,50$62,736$173,286$290,948

32 EnterpriseFund-Water,Sewer,andSanitationFunds TOWNOFHAUGItTON,LOUISIANA CombiningBalanceShet withcomparativetotalsfordecember31,201 December31,202 W~er 202 CashCertificatesofdeposit Ase~s Fund Sewer Fund Sanit~ion Fund Combined ,151$21,06$130,470 Receivables(netwhereplicable, ofalowancesforuncolectibles): 145,59 10, , , , Acounts Prepaidexpenses Duefromotherfunds Acruedinterest 27,161 4,785 21,410 15,01 3,678 Restrictedasets: 2,35 2,80 63,572 3,678 5,948 2,014 7,65 71,40 9,370 8,283 2,847 6~4 4,517 Property,plantandequipment(net Cash Certificatesofdeposit 89,49 ofacumulatedepreciation) 57, ,092 Totalasets 83,384 10,0 501,541 1,532, ,953 6,056 1,717,323$1,96,586$170,912$3,84,821$3,36,170 2,415,762,143,670 Acountspayable Duetotherfunds Payablefromrestrictedasets: 3,184$ Curentportionofbondspayable 28,075 Interestpayable 18,823 94,79 1,902$ 8,630$13,716$ 2, ,09 14,051 Deposits Revenuebondspayable 12,09 18,823 3,592 63,060 Fundequity: Totaliabilities 182, ,498 96, ,09 19,069 20,765 73,060 13, , , , ,498 69,50 Contributedcapital Retainedearnings: 378,028 1,284,895 1,62,923 1,35,404 Unreserved Totalretainedearnings ,796,934 1,650,268 Totaliabilitiesandfundequity Totalfundequity 1,031,797 1,409,8251,89,85 614,90 150,1471,796,9341,650,268 1,717,323$1,96,586$170,912$3,84,821$3,36, ,1473,459,8572,985,672

33 EnterpriseFund-Water,Sewer,andSanitationFunds TOWNOFHAUGHTON,LOUISIANA CombiningStatementofRevenues,Expenses FortheYearEndedDecember31,202 andchangesinretainedem-nings withcomparativetotalsfortheyearendeddecember31,201 Water 202 Operatingrevenues: Fund Sewer Fund Sanitgion Fund Combined 201 Chargesforservice Operatingexpenses: O~erTotaloperatingrevenues $231,42 6,239 15,786 Personalservices 23L , ,4726, , ,50 523,634 2,084 Contractualservices Supliesandmaterials 72,346 Utilities 47,06 6,748 72,346 7,019 Insurance Repairsandmaintenance 16,471 20, ,879 14,692 17,646 Depreciation 21,29 81,35 15,254 4,87 67,60 106,241 21,436 21,348 13,742 46,39 19,283 Operatingincome(los) Non-operatingRevenues(Expenses): OtherTotaloperatingexpenses 261, ,735 23,42 3~537 43,105 Interestincome (23,706) 21,386 Interestexpense 10,07 (5,584) , , , ,6367 (67,378) 513,419 Losondisposedofasets Totalnon-operatingrevenues (13,065) 4,615 1,437 16,129 (520) Income(los)beforeotherfmanciag (expenses) Otherfinancinguses: Cashshortage (3,508) ,437 (13,065) 10,215 36,468 2,54 (520) (14,253) (27,214)(50,969) 13,349 (64,834) 32,430 2,215 Transfersin Transfersout Amountchargedtocontribution Totalotherfinancinguses (12,0) (398) 151,024 acounts-depreciationonfixedasets Netincome(los) (12,398) (12,0) (39,612) 139,024 Retainedearningsatbeginingofyear 42,616 8,05 151,024 (2,40) (26,40) 124,26 (398) (25,860) 28,725 (27,08) Retainedearningsatendofyear 1,028, ,27 4,658 10,949 59,392 8,207 1,031,797$614,90$150,147$1,796,934$1,650, ,650,268 87,274 1,56,091 85,970

34 TOWNOFHAUGHTON,LOUISIANA EnterpriseFund-Water,Sewer,andSanitationFunds CombiningStatementofCashFlows FortheYearEndedDecember31,202 withcomparativetotalsfortheyearendeddecember31,201 Cashflowsfromoperatingactivities: Operatingincome(los) Adjustmentstoreconcileoperating income(los)tonetcashprovided byopemtiugactivities: Cashshortage Depreciation (Increase)decreaseinacounts receivable (Increase)decreaseinprepaid expenses Increase(decrease)inacounts payable Increase(decrease)incustomers' deposits Totaladjustments 202 Water Fund (398) 81,35 4,46 (1,284) (1,090) 3,560 Netcashprovidedbyoperatmg 86,569 activities 62,863 Cashflowsfromcapitalandrelated financingactivities: Principalpayments Interestpaid Contributedcapital-proceds Netcashusedforcapitaland relatedfinancingactivities: Cashflowsfromnoncapitalfinancing activities: Operatingtransfersin(out),net Netcashprovidedbynoncapital financingactivities (19,095) (14,146) (3,241) ,424 Sewer Fund Sanitation FundCombined201 $(5,584)$1,912 65,831 2,281 (1,284) , , , ,253 (Continued) 1,141 (58)(59)524 12,436 (2,40) (398) 147,16 7,868 (3,126) (36) 3, ,356 (19,095) (14,146) 414, ,51 212,27 212,27 $10,215 (25,860) 139,636 (13,09) (15) 1, ,219 12,434 (19,618) (14,253) 20,

35 TOWNOFHAUGHTON,LOUISIANA EnterpriseFund-Water.Sewer.andSanitationFunds CombiningStatementofCashFlows-Continued FortheYearEndedDecember31,202 withcomparativetotalsfortheyearendeddecember Cashflowsfrominvestingactivities Interestiucomereceived Paymentstbrinvestments Procedsfrominvestments PurchaseofLxedasets Netcashprovidedbyinvesting activities Netincreaseincashandcash equivalents Cashandcashequivalentsatfile beginingofyear Cashandcashequivalentsathe endofyear 212 Water Fund (57,821) (5,0) (3]4) 45, Sewer Fund 4,615 (414,792) (410,17) 214, Sanitation Fund Combined ,31 (57.82I) 56,056 (419,792) (410246) (201,615) (158.74) (132,807) ,938( ) ,917 S592,60S43,158$130,470S1,156~28$73,10 28

36 ADITIONALREPORTREQUIREDBY GOVERNMENTA[,rDITINGSTANDARDS

37 SMITHPUGH&COMPANY,LP RTONCOMPLIANCEANDONINTERNALCONTROLOVERFINANCIAL CERTIFIEDPUBLICACOUNTANTS REPORTINGBASEDONANAUDITOFINANCIALSTATEMENTSPERFORMED INACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TheHonorableBilyMaxey,Mayor TheTownofHaughton,Louisiana andthemembersoftheboardofaldermenof WehaveauditedthegeneralpurposefinancialstatementsoftheTownofHaughton,Louisiana,asofandfortheyear endeddecember31,202,.andhaveisuedoureporthereondatedmay13,203.weconductedourauditin acordancewithauditingstandardsgeneralyaceptedmtheunitedstatesofamericandthestandardsaplicableto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolerganeraloftheunitedstates. Compliance AspartofobtainingreasonableasuranceaboutwhethertheTownofHaughton,Lonisiana'sgeneralpurposefinancial statementsarefleofmaterialmistatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws, regulations,contractsandgrants,noncompliancewithwinchcouldhaveadirectandmaterialefectonthe determinationofinancialstatementamounts.however,providinganopiniononcompliancewiththoseprovisionswas notanobjectiveofouraudit,andacordingly,wedonotexpresuchanopinion.theresultsofourtestsdisclosed instancesofnoncompliancethatarerequiredtobereportedundergovernmentauditingstandardswhicharedescribed intheacompanyingscheduleofauditfindingsasfindings02-1,02-2,and02-3. Inplaningandperformingouraudit,weconsideredtheTownofHaughton,Louisiana'sinternalcontroloverfinancial ntemalcontroloverfinancialrenortin~ reportinginordertodetermineourau~ditmgproceduresforthepurposeofexpresingouropiniononthegeneralpurpose financialstatementsandnotoprovideasuranceontheinternalcontroloverfinancialreporting.however,wenoted certainmatersinvolvingtheinternalcontroloverfinancialreportinganditsoperationsthatweconsidertobereportable conditions.reportableconditionsinvolvematerscomingtouratentionrentingtosignificantdeficienciesinthe designoroperationoftheinternalcontroloverfinancialreportingthat,inourjudgment,couldadverselyafecthe TownofHanghton,Lonisiana'sabilitytorecord,proces,sumarize,andreportfinancialdataconsistentwiththe asertionsofmanagementinthegeneralpurposefinancialstatements.thereportableconditionisdescribedinthe acompanyingscheduleofauditfindingsasfinding02-4. Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponents doesnotreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbematerialinrelationtothe generalpurposefinancialstatementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployes inthenormalcourseofperformingtheirasignedfimctions.ourconsiderationoftheinternalcontroloverfinancial reportingwouldnotnecesarilydisclosealmatersintheinternalcontrolthatmightbereportableconditionsand, acordingly,wouldnotnecesarilydisclosealreportableconditionsthatarealsoconsideredtobematerialweakneses. However,webelievenoneofthereportableconditionsdescribedaboveisamaterialweaknes. ThisreportisintendedsolelyfortheinformationanduseofmanagementandtheBoardofAldermen,andisnot intendedtobeandshouldnotbeusedbyanyoneotherthanthesespecifiedparties. CertifiedPublicAcountants May13, PIEREMONTROAD,SUITE40SHREVEPORT,LOUISIANA (318)2-5701FAX(318)869-4~6