Itisnotposibletoestimatethefairvalueoflongtermdebtowedtothefederalgovermentby

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1 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER (Continued) NOTEG-DISCLOSURESABOUTFAIRVALUEOFINANCIALINSTRUMENTS Thefolowingmethodsandasumptionswereusedtoestimatethefairvalueofeachclasof financialinstrumentsforwhichitispracticabletoestimatethatvalue: CashandInvestments Thecaryingamountaproximatesfairvaluebecauseoftheshortmaturityoftheseinstruments. LenqTermDebt Itisnotposibletoestimatethefairvalueoflongtermdebtowedtothefederalgovermentby thisgovernmentalentity,ahousingauthority.thehousingauthorityisunable,bylaw,tosecure longtermfinancingfromanyothersource.fasb107describesfairvalueofafinancial instrumentastheamountatwhichtheinstrumentcouldbexchangedinacurentransaction betwenwilingparties. NOTEH-ACOUNTINGFORTHEIMPAIRMENTOFLONG-LIVEDASETS Thefulamountofthecaryingvalueofbuildingsandlandimprovementsaredemed NOTEI-USEOFESTIMATESINTHEPREPARATIONOFINANCIALSTATEMENTS recoverablefromfuturecashflows. ThepreparationofthesefinancialstatementsrequirestheuseofestimatesbymanagemenṭNo significantestimateshavebenmadebymanagementhatrequiredisclosure. -16-

2 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER (Continued) NOTESF-LONG-TERMDEBT Long-termdebtconsistsofthefolowing nterest Bondpayable,August1,195series Rate Principal FNotes 3.75% Balance 6.6% 51,474.1 $54, Thebondsmatureinseriesanualyinvaryingamountswiththefinalmaturitydatein2026.Al requiredebtservicetomaturityonthebonds,includingprincipalandinterest,ispayableby HUDunderadebtservicecontractwiththentity. Long-termdebtisecuredbythelandandbuildingsofthentity Changesinlong-termdebtisasfolows Balance,beginingofperiod Principalretirement 62, Bonds Balance,endofperiod $54, Scheduleretirementsoflong-termdebtisasfolows 198 $ 8, , Thereafter 202 5, TheNotestoFinancialStatementsareanintegralpartofthesestatements ,

3 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER (Continued) NOTEC-ACTIVITIESOFTHEPHA AtSeptember30,197,thePHAwasmanaging49unitsoflow-rentinthreprojectsunder ProgramFW-192. NOTED-CONTINGENCIES Thentityisubjectoposiblexaminationsbyfederalregulatorswhodeterminecompliance withterms,conditions,lawsandregulationsgoverningrantsgiventothentityinthecurent andprioryears.thesexaminationsmayresultinrequiredrefundbythentitytofederal grantorsand/orprogrambeneficiaries. NOTE-PROPERTY.PLANTANDEQUIPMENT Changesinthegeneralfixedasetsacountgroupareasfolows: Land,landimpvts. $84,120.16$ Beg.ofPeriod Aditions $ Deletions EndofPeriod Buildings Equipment 1,051, , ,051, , Total $1,180,287.91$ 325.0$ 0.0$1,180, , AlandandbuildingarencumberedbyaDeclarationofTrustinfavoroftheUnitedStatesof Americasecurityforobligationsguarantedbythegovernmentandtoprotectotherinterests ofthegovernment. TheNotestoFinancialStatementsareanintegralpartofthesestatements -14-

4 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER (Continued) NOTEA-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) CostsofcompletedModernizationprojectsarereportedasconstruction-in-progres untilauditedcostcertificationreportsaresubmitedtohud,atwhichtimesuchcosts (10) aretransferedtotheapropriatepropertycategories. GeneralLone-TermDebt Along-termindebtednesoftheAuthorityisacountedforintheGeneralLong-Term DebtAcountGroupandisintendedtobepaidthroughtheDebtServiceFund. CompensatedAbsences Authorityemployesacruepersonaleave,orcompensatedabsences,bya prescribedformulabasedonlengthofservice.thecostofthishasnotbenacrued duetoimateriality. (12) TotalColumnsonCombinedStatements Totalcolumnsonthecombinedstatementsarecaptioned"MemorandumOnly"to indicatethatheyarepresentedonlytofacilitatefinancialanalysis.datainthese columnsdonotpresentfinancialposition,resultsofoperations,orchangesinfinancial positioninconformitywithgeneralyaceptedacountingprinciples,norisuchdata comparabletoaconsolidation.interfundeliminationshavenotbenmadeinthe NOTEB-CASHANDINVESTMENTS agregationofthisdata. AtSeptember30,197,theAuthorityhadinvestedexcesfundsasfolows MoneyMarketAcount $ Amount Cashandinvestmentsareinsuredasfolows FDICInsurance TheNotestoFinancialStatementsareanintegralpartofthesestatements -13- $18,10.97 $18,10.97

5 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 (Continued) NOTEA-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) TheAuthorityisunderalimitedbudgetreviewfromHUDwiththecontrolcategoryof totaloperatingexpenditures.iftherearenoverunsofthetotaloperating expenditures,thenhuddoesnotrequirebudgetrevisionsotherthanwhenthereare substantialaditionstononroutinexpenditures,suchasreinstatementofprior-year encumbrances.theboardandhudmustaprovefundapropriationincreases.any unusedapropriationslapseatyear-end.budgetedamountsareasoriginalyadopted orasamendedbytheboardandhud. Theoriginalbudgethasbenamendedthroughoutheyeartoreflectchangesin revenueandexpenditurestimates. Thebudgetispreparedonastatutory(HUD)basisandoesnotcontainaprovision foruncolectibletenantreceivables.thediferenceisnotconsideredmaterialy diferentfromgeneralyaceptedacountingprinciples. (6) CashandCashEauivalents Thentitydefinescashandcashequivalentstoincludecertificatesofdeposit,money (7) marketfunds,savingsacounts,andemandeposits. TenantReceivables ReceivablesforentalsandservicechargesarereportedintheGeneralFund,netof (8) alowancesfordoubtfulacountsamountingto$-0-atseptember30,197. Duringthecourseofnormaloperations,theAuthorityhasnumeroustransaction nterfundtransactions betwenfundstoprovideservices,constructasets,andservicedebt.thes transactionsaregeneralyreflectedasoperatingtransfersexceptfortransaction reimbursingafundforexpendituresmadebyitforthebenefitofanotherfund.suc transactionsarerecordedasexpendituresinthedisbursingfundandasareductio (9) ofexpendituresinthereceivingfund. GeneralFixedAsets GeneralFixedAsetshavebenacquiredforgeneralgovernmentalpurposes.Asets purchasedarerecordedasexpendituresinthegovernmentalfundsandcapitalized atcostinthegeneralfixedasetsacountgroup.contributedfixedasetsare recordedatestimatedfairmarketvalueathetimereceived.depreciationisnot recordedongeneralfixedasets.publicdomaingeneralfixedasets(infrastructure) consistingofcertainimprovementsotherthanbuildings,includingroads,curbsand guters,stretsandsidewalks,drainagesystems,andlightingsystems,arecapitalized alongwithothergeneralfixedasets. TheNotestoFinancialStatementsareanintegralpartofthesestatements -12-

6 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 (Continued) NOTEA-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) ACOUNTGROUPS GeneralFixedAsetsAcountGroup-This acountforalfixedasetsoftheauthorityacountgroupisestablishedto GeneralLonq-TermDebtAcountGroul2-Thisacountgroupisestablishedto (4)BasisofAcounting acountforalong-termdebtoftheauthority. Basisofacountingreferstowhenrevenuesandexpendituresorexpensesare recognizedintheacountsandreportedinthefinancialstatements.basisof acountingrelatestothetimingofthemeasurementsmade,regardlesofthe measurementfocusaplied.algovernmentalandagencyfundsareacountedfor usingthemodifiedacrualbasisofacounting.theirevenuesarerecognizedwhen theybecomemeasurableandavailableasnetcurentasets.revenuesare considered"measurable"whenreceivedincash,exceptforcertainrevenueswhichare acruedwhentheyarebothmeasurableandavailableorhavenotbenreceivedat thenormaltimeofreceipt.certaingrantrevenuesareacruedwhenfundsare expended.revenuesusceptibletoacrualarefederalgrants,intereston investments,andothermiscelaneousrevenueswhicharebothmeasurableand availabletofinancexpendituresofthecurentperiod.expendituresaregeneraly recognizedunderthemodifiedacrualbasisofacountingwhentherelatedfund liabilityisincured. AgencyFundsarecustodialinatureandonotmeasureresultsofoperations.They (5)BudgetaryData areclearingacountswhoseasetsataltimesarequalyofsetbyrelatedliabilities. TheAuthorityisrequiredbyitsHUDAnualContributionsContractstoadoptanual budgetsforthelow-renthousingprogram,includedinthegeneralfund,andal AsistedHousing(Section8)Programs,includedinSpecialRevenueFunds.Anual budgetsarenotrequiredforcapitalprojectsfundsastheirbudgetsareaprovedfor thelengthoftheproject.bothanualandprojectlengthbudgetsrequiregrantor aproval. TheNotestoFinancialStatementsareanintegralpartofthesestatements

7 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 (Continued) NOTEA-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(continued) (3) FundAcountinq(continued) GOVERNMENTALFUNDS GovernmentalFundsarethosethroughwhichmostgovernmentalfunctionsofthe Authorityarefinanced.Themeasurementfocusisondeterminationofinancial positionandchangesinfinancialpositionratherthanonetincomedetermination. ThefolowingaretheAuthority'sgovernmentalfundtypes: GeneralFund-TheGeneralFundisthegeneraloperatingfundoftheAuthority. TheGeneralFundisusedtoacountforalrevenuesandexpenditures aplicabletothegeneraloperationsoftheauthoritywhicharenotproperly acountedforinanotherfund.algeneraloperatingrevenueswhicharenot restrictedordesignatedastotheirusebyoutsidesourcesarerecordedinthe GeneralFund. SpecialRevenueFunds-SpecialRevenueFundsareusedtoacountforthe procedsofspecificrevenuesources(otherthanmajorcapitalprojects) requiringseparateacountingbecauseoflegaloregulatoryprovisionsor administrativeaction. DebtServiceFund-TheDebtServiceFundisusedtoacountforthe acumulationofresourcesforthepaymentofinterest,principal,andrelated costsofgeneralong-termdebt. CapitalProiectsFunds resourcestobe capitalfacilities usedf ortheacquisition,construction,orehabilitationofmajor FIDUCIARYFUNDS - CapitalProjectsFundsareusedtoacountforfinancial AgencyFunds-AgencyFundsincludeTenantSecurityDepositFund.Agency Fundsarecustodialinature(asetsequaliabilities)andonotinvolve measurementofresultofoperations. TheNotestoFinancialStatementsareanintegralpartofthesestatements -10-

8 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR NOTESTOFINANCIALSTATEMENTS SEPTEMBER NOTEA-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES TheHousingAuthorityofLakeArthur,Louisiana(theAuthority),apublicorporatebody,was organizedforthepurposeofprovidingdecent,safe,andsanitarydwelingacomodationsfor personsoflowincome. FinancialReortineEntity Generalyaceptedacountingprinciplesrequirethathefinancialstatementspresent theacountsandoperationsoftheauthorityanditscomponentunits,entitiesforwhich theauthorityisconsideredtobefinancialyacountable.blendedcomponentunits, althoughlegalyseparatentities,are,insubstance,partoftheauthority'soperations andatafromtheseunits,ifany,arecombinedwithdataoftheauthority.each discretelypresentedcomponentunit,ifany,wouldbereportedinaseparatecolumn inthecombinedfinancialstatementstoemphasizethatitislegalyseparatefromthe Authority.AsofSeptember30,197,andforthefiscalyearthenended,theAuthority hadnodiscretelypresentedcomponentunitsoranycomponentunitsrequiredtobe (2) blendedinthesefinancialstatements. TheacountsoftheAuthorityareorganizedonthebasisofundsandacountgroups, FundAcountinq eachofwhichisconsideredaseparateacountingentity.theoperationsofeachfund areacountedforwithaseparatesetofself-balancingacountsthatcompriseits asets,liabilities,fundequity,revenues,andexpenditures,orexpenses,as financialstatementsasfolows: apropriate.thevariousfundsaregroupedbytypeandbroadcategoriesinthe TheNotestoFinancialStatementsareanintegralpartofthesestatements -9-

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11 COMBINEDSTATEMENTOFREVENUES,EXPENDITURESANDCHANGESINFUNDBALANCES HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR ALGOVERNMENTALFUNDTYPES YEARENDEDSEPTEMBER GovernmentalFundTypes REVENUES General Revenue Special ServiceCapital Debt Projects (Memorandum Rentals Total Only) Intergovernmenta Interest Other 10, , , $ $48,674.O TotalRevenues 18, , , EXPENDITURES Administration Utilities Ordinarymaintenance 28, Generalexpenditures 28,69.96 Capitalexpenditures 36, Debtservice: 27, Principalretirement Interest 7, Totalexpenditures , , , , , , , , Exces(deficiency)ofrevenues over(under)expenditures (2,620.2) (49.65)(3, OTHERFINANCINGSOURCES(USES) Operatingtransfersin Operatingtransfersout Totalotherfinancingsources(uses) FUNDBALANCE,beginingofyear29, , FUNDBALANCE,endofyear $26,87.5$ 0.0$25,59.59$(429.03)$52,058.1 TheNotestoFinancialStatementsareanintegralpartofthesestatements -6-

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14 NoplnacordancewithGovernmentAuditingStandards,wehavealsoisuedareportdated January7,198onourconsiderationofHousingAuthorityoftheTownofLakeArthur'sinternal controloverfinancialreportingandourtestsofitscompliancewithcertainprovisionsoflaws, regulations,contractsandgrants. Ourauditwasperformedforthepurposeoforminganopiniononthegeneral-purposefinancial statementofthehousingauthorityofthetownoflakearthur,takenasawhole.the acompanyingscheduleofexpendituresofederalawardsispresentedforpurposesof aditionalanalysisasrequiredbyu.s.oficeofmanagementandbudgetcirculara-13,audits ofstates,loca/governments,andnon-profitorganizations,andisnotarequiredpartofthe general-purposefinancialstatements.suchinformationhasbensubjectedtotheauditing proceduresapliedintheauditofthegeneral-purposefinancialstatementsand,inouropinion, isfairlystated,inalmaterialrespects,inrelationtothegeneral-purposefinancialstatements takenasawhole. FortWorth,Texas January7,198

15 CERTIF~EDpITBLICACOLTNT/UN'TS 420AIRPORTFRE~VAy-SUITE10 ESTES&ASOCIATES FORTWORTH,TEXAS761]7 METRO(817) MIKESTES,CP^IPFS,CFP FAX(817) (817) AMERICANINSTITUTEOFCERTIFIED PUBLICACOUNrE&NIS MEMBER ndendentauditor'sreort BoardofComisioners HousingAuthorityofthe RegionalInspectorGeneral TownofLakeArthur OficeofInspectorGeneral LakeArthur.Louisiana DepartmentofHousingand Development foraudit Urban Wehaveauditedtheacompanyingeneral-purposefinancialstatementsandthecombiningand individualfundandacountgroupfinancialstatementsofthehousingauthorityofthetownof LakeArthur,LouisianatandfortheyearendedSeptember30,197,aslistedinthetableof contents.thesegeneral-purposefinancialstatementsaretheresponsibilityofthehousing AuthorityoftheTownofLakeArthur,Louisiana'management.Ouresponsibilityistoexpres anopiniononthesegenerafpurposefinancialstatementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthe standardsaplicabletofinancialauditscontainedingovernmentaud/t/ngstandards,isuedby thecomptrolergeneraloftheunitedstates.thosestandardsrequirethatweplanandperform theauditoobtainreasonableasuranceaboutwhetherthefinancialstatementsarefreof materialmistatement.anauditincludesexamining,onatestbasis,evidencesuportingthe amountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingthe acountingprinciplesusedandsignificantestimatesmadebymanagement,aswelas evaluatingtheoveralfinancialstatementpresentation.webelievethatourauditprovidesa reasonablebasisforouropinion. AsdescribedinNoteA,theauthority'spolicyistoprepareitsfinancialstatementsonthebasis ofacountingpracticesprescribedorpermitedbythedepartmentofhousingandurban Development,whichisacomprehensivebasisofacountingotherthangeneralyacepted acountingprinciples.thisreportisintendedsolelyforfilingwiththedepartmentofhousing andurbandevelopmentandisnotintendedforanyotherpurpose. Inouropinion,thegeneral-purposefinancialstatementsandthecombiningandindividualfund andacountgroupfinancialstatementsreferedtoabovepresentfairly,inalmaterialrespects, thefinancialpositionofthehousingauthorityofthetownoflakearthur,louisianasof September30,197andtheresultsofitsoperationsandchangesinitsurplusfortheyearthen ended,onthebasisofacountingdescribedinnotea.

16 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR SCHEDULEOFINDINGSANDQUESTIONEDCOSTS SUMARYOFAUDITOR'SRESULTSAND SumaryofAuditor'sResults AWeisuedanunqualifiedopinionontheHousingAuthorityofLakeArthur LouisianafortheauditofitsfinancialstatementsfortheyearendedSeptember30 B 197. Noreportableconditionsininternalcontrolweredisclosedbyourauditofthe financialstatements. CTheauditdidnotdiscloseanynoncompliancewhichismaterialtothefinancia statements. DNoreportableconditionsininternalcontrolweredisclosedbyourauditovermajor E programs. F Weisuedanunqualifiedopiniononcomplianceformajorprograms Ourauditdisclosednoauditfindingsthatwearerequiredtoreportunder510(a) ofombcirculara-13.ourauditproceduresalsoincludedthoseofhudnotice PIH GMajorprogramsareasfolows,andseScheduleofFederalExpendituresfor CFDAnumbersandamounts: H.ThedolarthresholdtodistinguishTypeAandTypeBprogramsis$30,0 LowIncomeHousing TheHousingAuthorityofLakeArthur,Louisianaqualifiedfortheyearended September30,197asalow-riskaudite. ScheduleofFindinasandQuestionedCosts J K Therearenofindingsinthesefinancialstatementsthatarerequiredtobereported inacordancewithgagas. TherearenoauditfindingsorquestionedcostsforFederalawardswhichshal includeauditfindingsasdescribedin510(a)ofombcirculara-13.ouraudit proceduresalsoincludedthoseofhudnoticepih96-53.

17 TABLEOFCONTENTS(Continued SUPLEMENTARYINFORMATION EXHIBIT PAGE BalanceShet StatementofIncomeandExpenses 212 AnalysisofSurplus ComputationofResidualReceipts StatementofModernizationCosts- andacruinganualcontribution AnalysisofGeneralFundCashBalance Uncompleted 27 ScheduleofExpendituresforFederalAwards ReportonComplianceAplicabletoEachMajor 2829 ProgramandInternalControlOverCompliancein ReportonComplianceandonInternalControlOver AcordancewithOMBCircularA FinancialReportingBasedonanAuditofFinancial StatementsPerformedinAcordancewithGovernment AuditingStandards 32-3

18 TABLEOFCONTENTS SUMARYOFAUDITOR'SRESULTSAND EXHIBIT PAGE SCHEDULEOFINDINGSANDQUESTIONEDCOSTS NDEPENDENTAUDITOR'SREPORT 12-3 FINANCIALSTATEMENTS GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTATEMENTS-OVERVIEW) CombinedBalanceShet-AlFundTypesandAcount CombinedStatementofRevenues,Expendituresand Groups 4-5 ChangesinFundBalances-AlGovernmentalFundTypes CombinedStatementofRevenues,Expendituresand ChangesinFundBalances-Budget(GAPBasis) CombinedStatementofRevenues,Expendituresand andactual-generalfundandspecialrevenuefunds ChangesinFundBalances-Budget(GAPBasis) NotestoFinancialStatements andactual-debtserviceandcapitalprojectsfunds CapitalProjectFundTypes-CombiningBalanceShet CapitalProjectFundTypes-CombiningStatementof FiduciaryFunds-CombiningBalanceShet Revenues,ExpendituresandChangesinFundBalances 18 FiduciaryFunds-ScheduleofChangesinDeposits 19 DuetoOthers 20

19 oficial FILEC04P~ ~

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22 FranklinParishComunicationsDistrictwascreatedbytheFranklinParishPoliceJury.Thedistrictisgovernedbya sevenmemberboardapointedbythepolicejury.thedistrictisresponsibleforinstalation,maintenance,and operationofa91emergencysysteminfranklinparish. ThereportingentityforFranklinParishconsistsoftheFranklinParishPoliceJury,whichasgoverningauthorityofthe parishisthecomponentunitwithoversightresponsibility,andothergovernmentalunits(componentunits)withinthe parishoverwhichthepolicejuryexercisesoversightresponsibility.inacordancewithgasbcodificationsection 210,FranklinParishComunicationDistrictisconsideredacomponentunitoftheparishreportingentitybecause; (1)comisionersofthedistrictareapointedbytheFranklinParishPoliceJuryand;(2)thedistrictprovides91 emergencyservicetoresidentswithinfranklinparish.whilefranklinparishcomunicationsdistrictisanintegral partoftheparishreportingentityandshouldbeincludedwithinthegeneralpurposefinancialstatementsofthat reportingentity,gasbcodificationsection260providesthatacomponentunitmayalsoisuefinancialstatements separatefromthoseofthereportingentity.acordingly,theacompanyingfinancialstatementspresentinformation onlyonthefinancialoperationsoffranklinparishcomunicationsdistrictandonotpresentinformationonthe FranklinParishPoliceJury,thegeneralgovernmentservicesprovidedbythepolicejuryoronothercomponentunits thatcomprisethefranklinparishreportingentity. FundAcounting FranklinParishComunicationsDistrictisorganizedandoperatedonafundbasiswherebyaself-balancingsetof acounts(specialrevenuefund)ismaintainedthatcomprisesitsasets,liabilities,fundbalance,revenues,and expenditures.theoperationsareacountedforasaspecialrevenuefund.thisfundisusedtoacotmtforthe procedsofspecificrevenuesourcesthatarelegalyrestrictedtoexpendituresforspecifiedpurposes. BasisofAecountin~ Basisofacountingreferstowhenrevenuesandexpendituresarerecognizedintheacountsandreportedinfinancial statements.basisofacountingrelatestothetimingofmeasurementmade,regardlesofthemeasurementfocus aplied.thespecialrevenuefundisacountedforusingthemodifiedacrualbasisofacounting.theirevenues arerecognizedwhentheybecomemeasurableandavailableasnetcurentasets.expendituresaregeneraly recognizedunderthemodifiedacrualbasisofacountingwhentherelatedfundliabilityisincured. Proposedbudgets,preparedonabasisconsistentwithgeneralyaceptedacountingprinciples(GAP),arepresented bythesuperintendentpriortothecomencementofeachfiscalyear.afterpublichearings,theproposedbudget,after anyamendmentsdemednecesary,isadoptedbytheboard.budgetaryamendmentsareprocesedinthesame maner. FortheyearendedSeptember30,197,abudgetwasprepared.Thefailuretoprepareabudgetconstitutesaviolation ofstatelawandisnotincompliancewithgeneralyaceptedacountingprinciples.

23 FRANKLINPARISHCOMUNICATIONSDISTRICT STATEMENTOFREVENUES.EXPENDITURESANDCHANGESINFI1ND BALANCE-BUDGET(GAPBASIS/ANDACTUAl, SPECIALREVENUEbliND [ YEARENDEDSEPTEMBER30_197 BUDGET ACTUALOJNFAVORABLE/ VARIANCE 91Fes Interest OtherIncome 102,739 1, ,10 1, TOTALREVENUES 10517~; I(1~;6f~6 4~1 48 EXPENDITURES Acounting Contracts Depreciation 1,50 3,630 1,50 3,738 (108) EquipmentRental Insurance 20,0 32,591 20,152 32,591 (152) OficeSuplies 6,538 6,538 Postage 5, , ,454 Retirement Salaries 2,928 2,928 Signs 39, , (32) Subscriptions&Dues Taxes Telephone Training 3,215 1,16 2,85 1,16 30 Travel VehicleExpense 1,054 1,054 1,251 1, EXCESOFREVENUESOVEREXPENDITIRES TOTALEXPENDITURES (1S~R6)I (105R~/ a~r,7 FUNDBALANCEATBEGININGOFYEAR 135~4~ lq~4~ 4O0R FUNDBALANCEATENDOFYEAR 19q~;q 1940~7,1o~ n SeNotestoFinancialStatements 4 r

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26 MARCUS,ROBINSONandHASEL CERTIFIEDPUBLICACOUNTANTS P.O.BOX487 HarveyMarcus,CPA JohnRobinson,CPA W1NSBORO,LOUISIANA71295 TELEPHONE(318) EVADALEDRIVE DoyleHasel,CPA 1N13EPENDENTAI]DITOR'SREPORT TotheBoardofConunisions FranklinParishComtmicationsDistrict Winsboro,Louisiana Wehaveauditedtheacompanyingeneral-purposefinancialstatementsoftheFranklinParishComunicationsDistrict, asofandfortheyearendedseptember30,197,aslistedinthetableofcontents.thesegei~eral-purposefinancial statementsaretheresponsibilityofthefranklinparishcomunicationsdistrict'smanagement.ouresponsibilityisto expresanopiniononthesegeneral-purposefinancialstatementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthestandardsaplicableto financialauditscontainedingovernmentauditin~standards.isuedbythecomptrolergeneraloftheunitedstates. Thosestandardsrequirethatweplanandperformtheauditobtainreasonableasuranceaboutwhetherthefinancial statementsarefreofmaterialmistatement.anauditincludesexaminingonatestbasis,evidencesuportingthe amountsandisclosuresinthefmancialstatements.anauditalsoincludesasesingtheacountingprinciplesusedand significantestimatesmadebymanagement,aswelasevaluatingtheoveralfinancialstatementpresentation.webelieve thatourauditprovidesareasonablebasisforouropinion. Inouropinion,thegcneral-purposefinancialstatementsreferedtoabovepresentfairly,inalmaterialrespects,thc financialpositionofthefranklinparishcomunicationsdistrict,asofseptember30,197,andtheresultsofits operationfortheyearthenended,inconformitywithgeneralyaceptedacountingprinciples. Inacordancewith~ovenmaentAuditingStandards,wehavealsoisuedoureportdatedJanuary7,198,onour considerationofthefranklinparishcomunicationsdistrict'sinternalcontroloverfinancialreportingandourtestsof itscompliancewithcertainprovisionsoflaws,regulations,contractsandgrants. Ourauditwasperformedforthepurposeoforminganopiniononthegeneral-purposefinancialstatementsoftheTown ofwiunsboro,louisiana,takenasawhole.theacompanyingscheduleofcompensationpaidboardmembersis presentedforpurposesofaditionalanalysis,andisnotarequiredpartofthegeneral-purposefinancialstatements.such infomtionhasbensubjectedtotheauditingproceduresapliedintheauditofthegeneral-purposefinancialstatements and,inouropinion,isfairlystatedinalmaterialrespects,inrelationtothegeneral-purposefinancialstatementstakenas awhole. Marcus,RobinsonandHasel Winsboro,Louisiana January7,198

27 Ir FRANKLINPARISHCOMINICATIONSDISTRICT TABLEOFCONTENTS IndependentAuditor'sReport ComponentUnitFinancialStatements: SpecialRevenueFund: BalanceShet StatementofRevenues,Expenditures,andChangesinFundBalance StatementofRevenues,ExpendituresandChangesinFundBalance- NotestoFinancialStatements Budget(GAPBasis)andActual ReportonComplianceandonInternalControlOverFinancialReporting 8 ScheduleofCompensationPaidBoardMembers 9

28 OFICIAL DONOTIEND!i._ FILECOPY ~wolnm~wy i copya~et.'~ BACKInFILE) FRANKLINPARISHCOMUNICATIONSDISTRICT COMPONENTUNITFINANCIALSTATEMENTS WINSBORO,LOUISIANA SEPTEMBER30,197 i repor~isapublicdocument.a Jnoerprovisionsofstalelaw,tbJ> copyofthereporthasbensubmittedtotheaudited,oreviewed, entityaridotherapropriatepublic oficials.thereportisavailablefor publicinspeqtionathebaton RougeoficeortheLesislatveAuditorand,whereapropriate,athe oficeoftheparishclerkofcourt q~l~asedate.~ ~,-

29 q Thisreportisintendedforthe agenciesandpas-through distributionisnotlimited. informationoftheauditcomite entities.however,thisreportis managementandfederalawarding amaterofpublicrecordandits FortWorth,Texas January7,198-3-

30 4~0AIRPORTFREWAY-SUITE10 CERTIFIEDP[FILICACOUNTANTS ESTES&ASOCIATES FORTWORTH,TEX~S7617 METRO(817)654"4063 (8{7) MIKESI"E$,CPAIPFS,CFP FAX(817) AMERICANINSTITUTEOFCERTIFIED PUBLICACOUNTANTS MEMBER ReortonComolianceand AcordancewithGovernmentAuditineStandard~ oninternalcontroloverfinancia )ffinancial~tatemp.nt~pp.rfc~rm~r TownofLakeArthur HousingAuthorityofthe LakeArthur,Louisiana WehaveauditedthefinancialstatementsoftheHousingAuthorityoftheTownofLakeArthur, datedjanuary7,198.weconductedourauditinacordancewithgeneralyaceptedauditing LouisianasofandfortheyearendedSeptember30,197,andhaveisuedoureporthereon standardsandthestandardsaplicabletofinancialauditscontainedingovernmentaud/t/ng Standards,isuedbytheComptrolerGeneraloftheUnitedStates. Compliance AspartofobtainingreasonableasuranceaboutwhethertheHousingAuthorityoftheTownofLake Arthur,Louisiana'sfinancialstatementsarefreofmaterialmistatement,weperformedtestsofits whichcouldhaveadirectandmaterialefectonthedeterminationofinancialstatementamounts. compliancewithcertainprovisionsoflaws,regulations,contractsandgrants,noncompliancewith However,providingaopiniononcompliancewiththoseprovisionswasnotanobjectiveofouraudit and,acordingly,wedonotexpresuchanopinion.3-heresultsofourtestsdisclosednoinstances ofnoncompliancethatarerequiredtobereportedundergovernmentaud/t/ngstandards. nternalcontroloverfinancialreuortino Inplaningandperformingouraudit,weconsideredtheHousingAuthorityoftheTownofLake Arthur,Louisiana'sinternalcontroloverfinancialreportinginordertodetermineourauditing proceduresforthepurposeofexpresingouropiniononthefinancialstatementsandnotoprovide asuranceontheinternalcontroloverfinancialreporting.ourconsiderationoftheinternalcontrol overfinancialreportingwouldnotnecesarilydisclosealmatersintheinternalcontroloverfinancial reportingthatmightbematerialweakneses.amaterialweaknesisaconditioninwhichthedesign oroperationofoneormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylow leveltheriskthatmistatementsinamountsthatwouldbematerialinrelationtothefinancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployesinthe normalcourseofperformingtheirasignedfunctions.wenotednomatersinvolvingtheinternal controloverfinancialreportinganditsoperationthatweconsidertobematerialweakneseṣ -32-

31 nternalcontrolovercomoliance ThemanagementofTheHousingAuthorityoftheTownofLakeArthur,Louisianaisresponsiblefor establishingandmaintaininginternalcontrolovercompliancewithrequirementso~laws,regulations, contractsandgrantsaplicabletofederalprograms.inplaningandperformingouraudit,we consideredthehousingauthorityofthetownoflakearthur,louisiana'sinternalcontrolover compliancewithrequirementsthatcouldhaveadirectandmaterialefectonamajorfederal programinordertodetermineourauditingproceduresforthepurposeofexpresingouropinionon complianceandtotestandreportoninternalcontrolovercomplianceinacordancewithomb CircularA-13. Ourconsiderationoftheinternalcontrolovercompliancewouldnotnecesarilydisclosealmaters intheinternalcontrolthatmightbematerialweakneses.amaterialweaknesisaconditionin whichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoesnotreduce toarelativelylowleveltheriskthatnoncompliancewithaplicablerequirementsoflaws,regulations, contractsandgrantsthatwouldbematerialinrelationtoamajor~ederalprogrambeingauditedmay ocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseofperforming theirasignedfunctions.wenotednomatersinvolvingtheinternalcontrolovercomplianceand itsoperationthatweconsidertobematerialweakneses. Thisreportisintendedforthe agenciesandpas-through distributionisnotlimited. informationoftheauditcomite entities.however,thisreportis managementandfederalawarding amaterofpublicrecordandits FortWorth,Texas January7,

32 &20AIRPORTFRESVAY-SUITE10 CERTIFIEDPUBLICAC()Uh~F,LX~TS ESTES&ASOCIATES FORTWORTH.TEXAS7617 METRO(817) FAX(817)8~ (817) AMERICANINS3"ITU3"EOFCERTIFIED PUBLICACOUNTANTS MEMBER Rer)ortonComoliancewithRe.cJuirementsAonlicabletoEach MajorProeramandInternalControlOverCompliancein AcordancewithOMBCircularA-13 HousingAuthorityofthe TownofLakeArthur LakeArthur.Louisiana Compliance WehaveauditedthecomplianceoftheHousingAuthorityoftheTownofLakeArthur,Louisianawith thetypesofcompliancerequirementsdescribedinthe~8.oficeofmanagementandbudget (OMB)CircularA-13ComplianceSuplementandHUDNoticePIH96-53thatareaplicableto eachofitsmajorfederalprogramsfortheyearendedseptember30,197.thehousingauthority ofthetownoflakearthur,louisiana'smajorfederalprogramsareidentifiedinthesumaryof auditor'sresultssectionoftheacompanyingscheduleofindingsandquestionedcosts. Compliancewiththerequirementsoflaws,regulations,contractsandgrantsaplicabletoeachof itsmajorfederalprogramsistheresponsibilityofthehousingauthorityofthetownoflakearthur, Louisiana'smanagement.OuresponsibilityistoexpresanopinionontheHousingAuthorityof thetownoflakearthur,louisiana'scompliancebasedonouraudit. Weconductedourauditofcomplianceinacordancewithgeneralyaceptedauditingstandards; thestandardsaplicabletofinancialauditscontainedingovernmentaud/tingstandards,isuedby thecomptrolergeneraloftheunitedstates;andombcirculara-13,auditsofstates,loca/ Governments,andNon-ProfitOrgan/zat/onsandHUDNoticePIH96-53.ThosestandardsandOMB CircularA-13requirethatweplanandperformtheauditobtainreasonableasuranceabout whethernoncompliancewiththetypesofcompliancerequirementsreferedtoabovethatcouldhave adirectandmaterialefectonamajorfederalprogramocured.anauditincludesexamining,on atestbasis,evidenceabouthehousingauthorityofthetownoflakearthur,louisiana's compliancewiththoserequirementsandperformingsuchotherproceduresasweconsidered necesaryinthecircumstances.webelievethatourauditprovidesareasonablebasisforour opinion.ourauditdoesnotprovidealegaldeterminationonthehousingauthorityofthetownof LakeArthur,Louisiana'scompliancewiththoserequirements. Inouropinion,theHousingAuthorityoftheTownofLakeArthur,Louisianacomplied,inalmateda programsfortheyearendedseptember30,197. respects,withtherequirementsreferedtoabovethatareaplicabletoeachofitsmajorfedera - 30-

33 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR FEDERALGRANTOR SCHEDULEOFEDERALFINANCIALASISTANCE U.S.DepartmentofHous PROGRAMTITLE CDFAGRANT YEARENDEDSEPTEMBER DirectPrograms: NO.IDNO. AMOUNT AWARD Low-IncomeHousing ngandurbandevelopment EXPENDITURES PROGRAM AnualContribution14.850FW-192$ OperatingSubsidy14.850FW ,369.7$ Comprehensive MajorProgramTotal1/ 68, ,369.71/ 79, ,150.7 Improvement AsistanceProgram Project194 Project195 MajorProgramTotal FW , , , ,345.4 TotalHUD $ 192,659.70$ 13, , ,

34 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITF ANALYSISOFGENERALFUNDCASHBALANCE ANUALCONTRIBUTIONCONTRACT FW-192 CompositionBeforeAdjustments Netoperatingreceiptsretained: Operatingreserves-ExhibitC Deficientmodernizationfundsclosed Ineligiblexpenditures inprioraudit $ Excesmodernizationfunds-ExhibitE (2,84.59) (40O.3) (429.03) Adjustments Expenses/costsnotpaid: Acountspayable Acruedpaymentsinlieuoftaxes Deferedcredits 4, , ncomenotreceived: Acountsreceivable (748.0) GeneralFundCashAvailable 28,89.41 GeneralFundCash: Invested Apliedtodeferedcharges (prepaidinsurance,inventories,etc.) (5,1o.ol) GeneralFundCash-ExhibitA (lo,78.4) $ 13,

35 STATEMENTOFMODERNIZATIONCOSTS-UNCOMPLETED HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITE SEPTEMBER30,197 Project FundsAproved 193 Project FundsExpended 3O0,0O.O$ 194 ExcesofFunds , , Aproved 0.0$ FundsAdvanced FundsExpended 30,0.0 ExcesofFunds 30, Advanced 0.0 (15,318.80) Project FundsAproved FundsExpended ExcesofFunds Aproved 40,52.05 FundsAdvanced $ 260,37.72 FundsExpended ExcesofFunds Advanced $

36 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR COMPUTATIONOFRESIDUALRECEIPTSANDACRUINGANUALCONTRIBUTIONS EXHIBITD ANUALCONTRIBUTIONCONTRACT FW-192 YearEnded ComputationofAcruinQAnua Fixedanualcontribution TotalAnualContribution ExhibitC 10,

37 COMPUTATIONOFRESIDUALRECEIPTSANDACRUINGANUALCONTRIBUTIONS HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITD ANUALCONTRIBUTIONCONTRACT FW-192 YearEnded ComputationofResidualReceipts OperatinqReceipts OperatingIncome-ExhibitB HUDoperatingsubsidy 49,72.72 TotalOperatingReceipts , OeratinaExpenditures Operatingexpenses-ExhibitB Capitalexpenditures: Propertybetermentsandaditions 120, Residualreceipts(deficit)peraudit TotalOperatingExpenditures beforeprovisionforeserve Auditadjustments(backedout) (2,620.2) ResidualreceiptsperPHAbefore provisionforeserve (2,620.2) (Provisionfor)oreductionof operatingreserve-exhibitc ResidualreceiptsperPHA

38 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITC TWELVEMONTHSENDEDSEPTEMBER ANALYSISOFSURPLUS-STATUTORYBASIS ANUALCONTRIBUTIONCONTRACT FW-192 CumulativeHUDContributions Balanceperpriorauditat Anualcontributionforyearended Operatingsubsidyforyearended ExhibitD 10, Balanceat ,781.0 CumulativeHUDGrants Balanceperpriorauditat Advancesforyearended , Balanceat TotalSurplus-ExhibitA

39 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITC TWELVEMONTHSENDEDSEPTEMBER ANALYSISOFSURPLUS-STATUTORYBASIS ANUALCONTRIBUTIONCONTRACT UnreservedSurplus FW-192 Balanceperpriorauditat Netlosfortheyearended ExhibitB (1,306,84.29 (Provisionfor)reductionofOperatingReserve (73, foryearended exhibitd Balanceat (1,37, ReservedSurelus-OeratinaReserve Balanceperpriorauditat Provisionfor(reductionof)OperatingReserve fortheyearended exhibitd Balanceat ExhibitF (2, ,

40 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITB STATEMENTOFINCOMEANDEXPENSES-STATUTORYBASIS ANUALCONTRIBUTIONCONTRACT FW-192 YearEnded OperatingIncome Dwelingrental Interestongeneralfundinvestments 48,674.0 Otherincome TotalOperatingIncome OperatingExpenses ExhibitD Administration Utilities 28, Ordinarymaintenanceandoperation 28,69.96 Generalexpense 36, TotalOperatingExpense ExhibitD OtherCharges NetOperatingIncome(Los) (71,076.2) Interestonotesandbondspayable TotalOtherCharges NetLos-ExhibitC (73,589.80) -2-

41 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR EXHIBITA BALANCESHET-STATUTORYBASIS SEPTEMBER ANUALCONTRIBUTIONCONTRACT FW-192 Cash-ExhibitF ASETS Acountsreceivable-other $ 13, Investments-NoteB Debtamortizationfunds Deferedcharges 5, Land,structuresandequipment IneligibleExpenditures 1,952, , ,78.4 TotalAsets 2, LIABILITIESANDSURPLUS Acountspayable Acruedliabilities 4,916.3 Deferedcredits 1, Fixedliabilities Surplus-ExhibitC TotalLiabilities , TotalLiabilitiesandSurplus

42 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR SCHEDULEOFCHANGESINDEPOSITSDUETOTHERS SEPTEMBER FIDUCIARYFUNDS AgencyFunds Security Tenant Deposit Funds Fiduciary Total Funds DEPOSITBALANCESATBEGININGOFYEAR$2,454.0$2,454.0 ADITIONS Receiptsfromtenants TotalAditions DEPOSITBALANCESATENDOFYEAR 3,029.0$3,029.0 TheNotestoFinancialStatementsareanintegralpartofthesestatements -20-

43 HOUSINGAUTHORITYOFTHETOWNOFLAKEARTHUR COMBININGBALANCESHET FIDUCIARYFUNDS SEPTEMBER AgencyFunds Tenant Security Deposit ASETS Funds Fiduciary Total Funds Cashandcashequivalents TotalAsets $ 3,029.0$ 3,029.0$ 3, ,029.0 LIABILITIES Duetotenants TotalLiabilities $ 3,029.0$ 3,029.0$ 3, ,029.0 TheNotestoFinancialStatementsareanintegralpartofthesestatements -19-

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