%.':2~;,i';~-"26. underprovisionsofstatelaw,tils reportisapublicdocument.a copyofthereportha.~ber,submittedtolhe.:~pcited,o,"reviewed,

Transcription

1 %.':2~;,i';~-"26 '' '/-,."-?R OFI',':t4{. D0~0TS)NDOUT F)LECL,'Y edya~dpt,~c:t (Xeroxf)ec~a~, C'U[Ii~S~fO(1(his TOWNOFMAMOu,LOUISIANA FINANCIALREPORT hackir~tit[:) FORTHEYEARENDED OFTHE DECEMBER31,195 underprovisionsofstatelaw,tils reportisapublicdocument.a copyofthereportha.~ber,submittedtolhe.:~pcited,o,"reviewed, entityandotherapi:;'opdatepublic oficials.thr~reportisavailablefor publicinspaclionathebaton RougeoficeoftheLegislativeAuditorand,where~propriate,athe oficeoftheparishclerkofcourt. ReleaseDate~-/O-~

2 TableofContents INDEPENDENTAUDITORS'REPORT Page GENERALPURPOSEFINANCIALSTATEMENTS 1-2 (CombinedStatement-Overview) CombinedBalanceShet-AlFund CombinedStatementofRevenues,Expenditures, TypesandAcountGroups andchangesinfundbalances-al 3-4 CombinedStatementofRevenues,Expenditures, GovernmentalFundTypes andchangesinfundbalances-budget(gapbasis), 5 ComparativeBalanceShet-Proprietary andactual-generalandspecialrevenuefundtypes.6 ComparativeStatementofRevenues,Expenses FundType andchangesinretainedearnings-proprietary 7-8 ComparativeStatementofCashFlows- FundType ProprietaryFundType I0 9 NotestoFinancialStatements Ii-25 SINGLEAUDITSECTION INDEPENDENTAUDITORS'REPORTONSCHEDULEOF SCHEDULEOFEDERALFINANCIALASISTANCE FEDERALFINANCIALASISTANCE INDEPENDENTAUDITORS'REPORTONINTERNALCONTROL 28 STRUCTUREBASEDONANAUDITOFGENERALPURPOSE FINANCIALSTATEMENTSPERFORMEDINACORDANCE INDEPENDENTAUDITORS'REPORTONTHEINTERNAL WITHGOVERNMENTAUDITINGSTANDARDS CONTROLSTRUCTUREUSEDINADMINISTERING INDEPENDENTAUDITORS'REPORTONCOMPLIANCE FEDERALFINANCIALASISTANCEPROGRAMS 3-35 BASEDONANAUDITOFGENERALPURPOSEORBASIC FINANCIALSTATEMENTSPERFORMEDINACORDANCE WITHGOVERNMENTAUDITINGSTANDARDS 36-37

3 INDEPENDENTAUDITORS'REPORTONCOMPLIANCE WITHSPECIFICREQUIREMENTSAPLICABLETO INDEPENDENTAUDITORS'REPORTONCOMPLIANCE MAJORFEDERALFINANCIALASISTANCEPROGRAMS WITHTHEGENERALREQUIREMENTSAPLICABLE INDEPENDENTAUDITORS'REPORTONCOMPLIANCEWITH TOFEDERALFINANCIALASISTANCEPROGRAMS SPECIFICREQUIREMENTSAPLICABLETONONMAJOR FEDERALFINANCIALASISTANCEPROGRAMTRANSACTIONS.42-43

4 OERTIFIEDPUBLIOAOCOUNTANTS JOHNSON&VlDRINE AMERIOANINSTITUTEOFOERTIFIEDPUIBLIOAOUNTANTS SOCIETYOFLOUISIANACERTIFIEDPUBLIOAOUN]ANTS MEMBERS: INDEPENDENTAUDITORS'REPORT TotheMayorandTownCouncil TownofMamou StateofLouisiana WehaveauditedtheacompanyinggeneralpurposefinancialstatementsoftheTownofMamou,Louisiana,asofDecember31,195, andfortheyearthenendedaslistedinthetableofcontents. Thesegeneralpurposefinancialstatementsaretheresponsibility ofthetownofmamou,louisiana'smanagement.ourresponsibility istoexpresanopiniononthesegeneralpurposefinancial Weconductedourauditinacordancewithgeneralyacepted statementsbasedonouraudit. auditingstandards,governmentauditingstandards,isuedbythe OficeofManagementandBudgetCircularA-128,"AuditsofState ComptrolerGeneraloftheUnitedStates,andtheprovisionsof andlocalgovernments."thosestandardsrequirethatweplan mistatement.anauditincludesexamining,onatestbasis,evidencesuportingtheamountsanddisclosuresinthegeneral purposefinancialstatements.anauditalsoincludesasesing theacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralgeneralpurpose financialstatementpresentation.webelievethatouraudit providesareasonablebasisforouropinion. andperformtheaudittobtainreasonableasuranceaboutwhetherthegeneralpurposefinancialstatementsarefreofmaterial Thegeneralpurposefinancialstatementsreferedtoabovedonot includefinancialactivitiesofthetownofmamouhealthcare EnterpriseFund,whichshouldbeincludedtoconformwithgeneralyaceptedacountingprinciples.Thisfundisauditedby otherauditorsandtheinformationisnotavailableatthedate ofthisisuance. MICHAELW,JOHNSON,CPA 105I-~1HST.,POBOX529 EUNICE,LOUISIANA70535 (~8~as7~51 OFLCE~ CHARLESN.VIDRINE,OPA 4236TrlSt,I~OBOX248 MAMOU,LOUISIANA7054

5 Inouropinion,exceptforthe mentsoftheomisiondescribedefectsonthefinancialstateintheprecedingparagraph,the generalpurposefinancialstatementsreferedtointhefirst paragraphpresentfairly,inalmaterialrespects,thefinancial positionofthetownofmamou,louisiana,asofdecember31, 195,andtheresultsofitsoperationsandcashflowsofits propr generietaryfundtypesfortheyearthenendedinconformitywith alyaceptedacountingprinciples. Johnson& Certifiedvidrine Eunice,Louisiana PublicAcountants June28,196

6

7 TOWNOFMAMOU COMBINEDBALANCESHET*ALFUNDTYPES DECENBER31195 PetyCash ASETS GeneralSpecial RevenueDebt Service ProprietaryGenera(Genera( FundTypeLong-TermFixed EnterpriseDebt Asets CashonDeposit CertificatesofDeposit $640$ Receivabtes(Net,Where ApticabteofAtowances 2,263,~5 94,079161,61270,242 $ 36,268 $ 158,304 $ $ foruncotectibtes) AcruedInterest SpecialAsesments Fines Acounts(NetofA(LowanceforUncolLectibte PrepaidExpenses DueFrofnOtherFunds Acounts) RestrictedAsets CashandCertificates 60,0786,038 1, ,525 5,67 3,027 FixedAsets(NetofA(lowanceforDepreciation) ofdeposit 204,894 AmountAvai(abteinDebt ServiceFund 3,489, AmountTObeProvidedfor RetirementofGenera(Lof~g TermDebt TOTALASETS $10,80A $693,0 Theaco(~panyingnotesareanintegralpartofthistatement (Continued) 3

8 TOWNOFNAMOL; DECEMBER31,195 ANCESHET-ALFUNDTYPES (Continued) AcountsPayab e LIABILITIES Genera[Revenue Special ServiceEnterprise Debt Proprietary FundType Long-TermFixed GeneralGenera[ DebtAsets InterestPayable PayablefromRestrictedAsets $~,450$4,892$ $37,08$ $ RevenueBondsandCertificates MeterDeposits DuetoOtherFunds GeneralObligationBonds ofindebtednes 186,646 13,94 TotalLiabilities 10,17017, ,360 InvestmentinGeneralFixed FUNDEOUITY $78,620$2,709$-0-$927,094 41,056 $~593=0$ ContributedCapital RetainedEarnings: Asets $ $ $ $ ReserveforRevenueBond 2,501,828 $ FundBalances: Retirement Unreserved $ $ $ $60,780$ ReservedforDebtService Unreserved,Undesignated Tota[RetainedEarnings/ 39,0 10, $ TotalFundEquity FundBatance $2.351,474$353,64 2,351,474314,64 TotalLiabilitiesand $2,351,474$353,64 $10,804 $10=804 $674=651 $3=176,479 $-0o $-0- $-0- $85=513 EundEquity Theaco~nyingnotesareanintegralpartofthistatement 4

9 COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGES NFUNDBALANCES-ALGOVERNMENTALFUNDTYPES TOWNOFMAMOU REVENUES: Taxes General Special LicensesandPermits lntergovernmental $246,721 Revenues Debt Service (Memorandum Total Leases 92,698 ChargesforServices 71,470 $485,723 $ $732,4 Only) FinesandForfeits 2,975,0 Miscetaneous EXPENDITURES: TotalRevenue 69,238 4,452 2,975,0 92,698 71,470 $3,53,939 74,360 $489,078 3,35 4,452 $15,26 $4~038,243 69,238 92,941 Curent: GeneralGovernment CultureandRecreation DebtService HighwaysandStrets $5 CapitalOutlays PublicSafety-Police EXCES(Deficiency)OFREVENUES TotalExpenditures $I,536,05 23,832 $ ,231 $203,67 203,67 $320,391 85,30T 424,17 490,560 $I=913,15 203,67 389~O63 OTHERFINANCINGSOURCES(USES $1,97,84$315,69S $~t8,451)$2,125,12~ ProcedsofRefundingBonds OperatingTrB~sfersIn Pay~tentoRefundedDebtEscrow $ $ $693,0 OperatingTransfersOut Agent 267,415 {)_~.91,65} (693,0) (80,845) $693,0 (693,0) (172,50) TotalOtherFinancing EXCES(Deficiency)OFREVENUES Sources(Uses) $267,412$(91,65)${80,845)$94,915 $2,265,29$24,040 $(269,296) UNDBALANCEENDOFYEAR $2,351,474 86,175 $353,64 129,604 $10, ,10 $2,20,043 $2,815,92 595,879 Theacwnpanyingnotesareanintegralpartofthistatement

10 REVENUES: Taxes LicensesandPermits Intergovernmenta( Leases ChargesforServices FinesandForfeits Miscelaneous TotalRevenues EXPENDITURES: Curent: Genera[Government CultureandRecreation DebtService HighwaysandStrets PublicSafety-Police Capita[Outlays TotalExpenditures TOWNOFMAMOU U G ST ENDEDECEMBER31 $28,10 90,20 69,70 2,975,0 2,70 65,0 68,565 $3,49,265 $316,85 73, , ,40 247,0 $I~56,490 $246,721 92,698 71,470 2,975,0 4,452 69,238 74,360 $3,53~939 $320,36 7, ,17 490,560.23,832 $I,536,05 TYPES Budget Actual $490,0 $485,723 2,60 $492,60 $1,0 36,0 89,0.140,0 $26,0 $I,932,75$1,97,84 $26.60 $230,0 $ (180,O) }230,0$267,415 $(180,0) $2,265,29 86,175 $2,351,474 Theacompanyingnotesareanintegralpartofthistatement 6 3,35 $489,078 $5 8,097 ~165,231 $173,383 $(91,65} }(91,65) $24, ,604 $35364

11 CurentAsets TOWNOFMAMOU ENTERPRISEFUND UTILITYFUND MP BALANCESHET-PROPRIETAN DECEMBER3].195AND195 CashonDeposit AcountsReceivable,NetAlowance ForUncolectibleAcounts (195,$10,969;194,$7,09) AcruedInterestReceivable PrepaidInsurance DuefromOtherFunds TotalCurentAsets RestrictedAsets CashonDepositforWaterBonds BondSinkingFund BondReserveFund BondDepreciationFund MeterDepositReserve CertificatesofDeposit GashonDepositforWaterCertificate ofindebtednes IndebtednesSinkingFund TotalRestrictedAsets FixedAsets' UtilityPlantinService,atcost, NetofAcumulatedDepreciation, (195,$1,878,357;194,$i,63,495) TOTALASETS (Continued) 195 $158, , ,67 3,027 $293,.394 $24,476 30, ,714 $320,570 $3,489,609 $~,I03,57B 194 $189,928 94,93 1,292 10,212 35,963 $32,38 $46,215 23, ,545 $318,5~ $3,185,232 $3,836,179 Theacompanyingnotesareanintegralpartofthistatement

12 TOWNOFMAMOU ENTERPRISEFUND UTILITYFUND COMPARATIVE~A~ANCESHET-PROPRIETARYFUNDTYPE LiabilitiesandEquity CurentLiabilities: (Payable Acounts Interest Total DECEMBER3]195AND194 (Continued) (PayablefromRestrictedAsets) CurentBonds&CertificatesPayable GasCustomerMeterDeposits WaterCustomerMeterDeposits TotalTotalCurentLiabilities Long-TermLiabilities SewerRehabBondsPayable RevenueBondsPayable WaterCertificateofIndebtednes TotalLong-TermLiabilities DuetoOtherFunds DuetoOtherFunds TotalOtherLiabilities TotalLiabilities FundEquity: ContributedCapital(netof amortizationforcapitalgrants) RetainedEarnings: ReserveforRevenueBond Retirement Unreserved TotalRetainedEarnings TotalEquity TotalLiabilitiesandEquity 195 $37,08 13,94 $51~032 $60, , ,426 $298,458 $169,0 418, $587,580 $41,056 $41,056 $927, $45, $61,137 $38, ,651 4,013 $217,374 $278,51 $20,0 428,360 35,0 $63,360 $ 3O5 $ 3o5 $942,176 $2, $21260,563 $60, $674,651 $3,176,479 ~4,103,573 $38, $63,40 $2,894,03 ~3,836,179 Theacompanyingnotesareanintegralpartofthistatement 8

13 COMPARATIVESTATEMENTOFREVENUESEXPENSESANDCHANGES TOWNOFMAMOU INRETAINEDEARNINGS-PROPRIETARYFUNDTYPE UTILITYFUND YEARENDEDECEMBER3]195AND194 Oneratin~Revenue ChargeforServices: GasSales WaterSales SewerServiceCharges $619,612 GarbageColectionFes 295,423 Transfers,ReconectFesandTaping 173,94 $6,97 ODeratin~Exnenses TotalOperatingRevenues 109,67 292,464 7, ,245 $I,206,3 $I,252, ,724 10,253 GasDepartmentExpenses WaterDepartmentExpenses SewerageDepartmentExpenses $424,80 GarbageColectionDepartment 139,405 DepreciationExpense 256,381 $467,386 OperatingIncome TotalOperatingExpenses $I,17, , , , ,582 13,726 Non-OperatingIncome(~xpensesT: 2921 $I,040, InterestEarned InterestExpense TotalNon-Operating(Expenses) $16,536 $(46,7617 (63,297 $14,80 $(49,65) (64,535) Income(Los)BeforeOperating OtherFinancin~Sources(Uses Transfers (17, TransfertoOtherFunds NetIncome(Los) OtherFinancingSources(Uses) $(90,26) $(90,267 $(I07,76) $(351,5937 $(351~5937 Ad:Depreciationonfixedasets $(189,20) acquiredbygrantsexternaly restrictedforcapitalacquisitions andconstructionthatreduces RetainedEarnings,Beginingof contributedcapital 148,97 82,743 RetainedEarnings,EndofYear 6340 $63, Theacompanyingnotesareanintegralpartofthistatement

14 TOWNOFMAMOU COMPARATIVESTATEMENTSOFCASHFLOWS CashflowsfromoDeratinEactlvit Netincome(los)fromoperatingactivities Adjustmentstoreconcilenetincome/(los) tonetcashprovided(used)byoperating activities: Depreciation (Increase)/Decrease (Increase)/Decrease Increase/(Decrease) Increase/(Decrease) Inerease/(Decrease) liabilities (Inerease)/Decrease inreceivables inprepaids inacountspayable ininterestpayable inmeterdeposit inloanstotherfunds Totaladjustments Netcashprovidedbyoperatingactivities C~hf]nw~9rnmnone~Ditalfinanein~activities Paymentstotherfunds Netcashusedfornoncapital financingactivities Cashflowsfromcapitalandrelated f~nanej~activities BorowingonBonds Paymentsforproperty,plant,andequipment Bondprincipalpayments Noteprincipalpayments Contributionstocapital Netcashprovided(used)bycapital andrelatedfinancingactivities Cashflowsfrominvestin~activities Netincrease(decrease)incashandcash equivalents Cashandcashequivalentsatbeginingofyear Cashandcashequivalentsatendofyear 195 $29,21 $214,862 30,1) 4,545 8,727) 1,378) 7, $260,860 $290,081 $(90,26) $(90,26) 194 $212,048 $141,582 47,693 (450) (19,986) ,980 54,357 $23,536 $45,584 $(351,593) $(351,593) 5(182,707) $150,929 $16,536 (63,297) $(46,761) 5(29,613) $14,80 (64,535) $(49,65) $195, $508,487 Theacompanyingnotesareanintegralpartofthistatement I0

15 NOTESTOFINANCIALSTATEMENTS DECEMBER TOWNOFMAMOU NoteA-SumaryofSignificantAcountingPolicies TheTownofMamou,Louisiana 191,undertheprovisionsof operatesunderamayor-boardof thelawrasonact.thetown ThefinancialstatementsoftheTownofMamou,Louisianahave Aldermenformofgovernment. wasincorporatedjanuary4, benpreparedinconformitywithgeneralyaceptedacounting principles(gap)asapliedtogovernmentunits.thegovernmentalacountingstandardsboard(gasb)istheacepted standard-setingbodyforestablishingovernmentalacounting andfinancialreportingprinciples.themoresignificantof thegovernment'spoliciesaredescribedbelow. ReDortinaEntity Inevaluatinghowtodefinethegovernment,forfinancialreportingpurposes,managementhasconsideredalpotential componentunits.thedecisiontoincludeapotentialcomponentunitinthereportingentitywasmadebyaplyingthe criteriasetforthingap.thebasic-butnotheonly-criterionforincludingapotentialcomponentunitwithinthe reportingentityisthegoverningbody'sabilitytoexercise oversightresponsibility.themostsignificantmanifestation ofthisabilityisfinancialinterdependency.othermanifestationsoftheabilitytoexerciseoversightresponsibility include,butarenotlimitedto,theselectionofgoverning authority,thedesignationofmanagement,theabilityto significantlyinfluenceoperations,andacountabilityfor fiscalmaters.asecondcriterionusedinevaluatingpotentialcomponentunitsisthescopeofpublicservice.aplicationofthiscriterioninvolvesconsideringwhethertheactivitybenefitsthegovernmentand/oritscitizens,orwhether theactivityisconductedwithingeographicboundariesofthe governmentandisgeneralyavailabletoitscitizens.a thirdcriterionusedtoevaluatepotentialcomponentunitsfor inclusionorexclusionfromthereportingentityisthexistenceofspecialfinancingrelationships,regardlesofwhether thegovernmentisabletoexerciseoversightresponsibilities. Basedupontheaplicationofthesecriteria,thefolowingis abriefreviewofeachpotentialcomponentunitadresedin definingthegovernment'sreportingentity. Ii

16 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED ExcludedfromtheReportingEntity: TOWNOFMAMOUHEALTHCARENTERPRISEFUND. TheTownofMamouownsthephysicalplantoperatedbySavoy MedicalCenter,Inc.TheTownapointsfiveofthefiften membersofthegoverningboard.thefacilityisecuredwith theasetsofthefacilityandrevenuesgenerated. FundAcountina TheAcountsoftheTownareorganizedonthebasisofunds andacountgroups,eachofwhichisconsideredaseparate acountingentity.theoperationsofeachfundareacounted forwithaseparatesetofself-balancingacountsthatcompriseitsasets,liabilities,fundequity,revenuesand expendituresorexpenses,asapropriate.governmentresourcesarealocatedtoandacountedforinindividualfunds baseduponthepurposeforwhichtheyaretobespentandthe meansbywhichspendingactivitiesarecontroled.thevariousfundsaregroupedinthefinancialstatementsinthis report,intogovernmentalfundtypesandbroadfundcategories asfolows: GeneralFund-TheGeneralFundistheGeneralOperatingFund GovernmentalFunds ofthetown.itisusedtoacountforalfinancialresourcesexcepthoserequiredtobeacountedforinanotherfund. SpecialRevenueFunds-TheSpecialRevenueFundsacountfor revenuederivedfromspecialtaxesorotherearmarkedrevenue sources.thesalestaxfundisaspecialfundusedtoacount forprocedsofa2%salesandusetaxinthetownofmamou. DebtServiceFunds-TheDebtServiceFundsareusedtoaccountfortheacumulationandpaymentofmoniesforlong-term debt. ProprietaryFund~ 12

17 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED arefinancedandoperatedinamanersimilartoprivate businesenterprises-wheretheintentofthegoverningbody isthatthecosts(expenses,includingdepreciation)ofprovidinggodsorservicestothegeneralpubliconacontinuing basisbefinancedorecoveredprimarilythroughusercharges; or(b)wherethegoverningbodyhasdecidedthatperiodic determinationofrevenuesearned,expensesincured,and/or netincomeisapropriateforcapitalmaintenance,public policy,managementcontrol,acountability,orotherpurpose. Theacountingandreportingtreatmentapliedtothefixed FixedAsetsandLona-TermLiabilities asetsandlong-termliabilitiesasociatedwithafundare determinedbyitsmeasurementfocus.algovernmentalfunds areacountedforonspendingor"financialflow"measurement abilitiesaregeneralyincludedontheirbalanceshets. Theirreportedfundbalance(netcurentasets)isconsidered focus.thismeansthatonlycurentasetsandcurentli- ameasureof"availablespendableresources".governmental otherfinancingsources)anddecreases(expendituresandother FundOperatingStatementspresentincreases(revenuesand financinguses)innetcurentasets.acordingly,theyare saidtopresentasumaryofsourcesandusesof"available SpendableResources"duringaperiod. FixedasetsusedinGovernmentalFundTypeOperationsand infrastructureasetssuchasroads,etc.(generalfixed Asets)areacountedforintheGeneralFixedAsetsAcount Group,ratherthaninGovernmentalFunds.Nodepreciationhas benprovidedongeneralfixedasets. $819,913offixedasetsarevaluedathistoricalcost. $35,60offixedasetsarevaluedatestimatedhistorical costbymanagement. TheGeneralFixedAsetAcountGroupisnota"fund."Itis concernedonlywithmeasurementofinancialposition.itis notinvolvedwithmeasurementofresultsofoperations. Long-TermLiabilitiesexpectedtobe talfundsareacountedforinthe AcountGroupnotinthegovernmental financedfromgovernmen- funds. GeneralLong-TermDebt TheGeneralLong-TermDebtAcountGroupisnota"fund."It isconcernedonlywithmeasurementoffinancialposition.it isnotinvolvedwithmeasurementofresultsofoperations. 13

18 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED Becauseoftheirspendingmeasurementfocus,expenditure recognitionforgovernmentalfundtypesislimitedtoexclude amountsrepresentedbynon-curentliabilities.sincetheydo notafectnetcurentasets,suchlong-termamountsarenot recognizedasgovernmentalfundtypeexpendituresorfund Liabilities.Theyareinsteadreportedasliabilitiesinthe GeneralLong-TermDebtAcountGroup. AlProprietaryFundsareacountedforonacostofservice or"capitalmaintenance"measurementfocus.thismeansthat alasetsandalliabilities(whethercurentornon-current)asociatedwiththeiractivityareincludedontheir balanceshets.theirreportedfundequity(netotalassets)issegregatedintocontributedcapitalandretained earningscomponents.proprietaryfundtypeoperatingstatementspresentincreases(revenues)anddecreases(expenses)in netotalasets. DepreciationofalexhaustiblefixedasetsusedbyProprietaryFundsischargedasanexpenseagainsttheiroperations, acumulateddepreciationisreportedonproprietaryfund BalanceShets.Depreciationhasbenprovidedoverthe estimatedusefullivesusingthestraightlinemethod.the estimatedusefulivesareasfolows: GasMeters Radios OficeEquipment Fence WaterUtility: Wels WaterLines RebuiltWaterTank Motors,Etc. WaterSystemImprovements SewerageUtility: DisposalPlant ColectionSystem LineExtensionandRelocations LiftStations TransitLevel,Sprayer,Etc. AutomotiveEquipment GarbageColectionUtility: SolidWasteIncineratorSystem andbuilding AutomotiveEquipment i0i Years Years Years Years Years Years Years Years Years Years Years 3Years 3Years 25Years 25Years 5Years 3Years 30Years 15Years

19 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED BasisofAcountin~ BasisofAcountingreferstowhenrevenuesandexpenditures orexpensesarerecognizedintheacountsandreportedinthe FinancialStatements.BasisofAcountingrelatestothe timingofthemeasurementsmade,regardlesofthemeasurement focusaplied. AlGovernmentalFundsandAgencyFundsareacountedfor usingthemodifiedacrualbasisofacounting.theirrevenuesarerecognizedwhentheybecomemeasurableandavailable asnetcurentasets. whenleviedeventhough edinsubsequentyears. Propertytaxesarerecordedasrevenue aportionofthetaxesmaybecolect- Miscelaneousrevenuesarerecorded whenreceivedincashbecausetheyaregeneralynotmeasurableuntilactualyreceived.franchisetaxes,salestaxes, Inter-GovernmentalRevenue,andInterestIncomeareacrued, whentheirreceiptocursonenoughaftertheendofthe acountingperiodsoastobebothmeasurableandavailable. GrosSalesTaxesareconsidered"measurable"whencolected andarerecognizedasrevenueathatime. ExpendituresaregeneralyrecognizedundertheModified AcrualBasisofAcountingwhentherelatedfundliabilityis incured. AlProprietaryFundsareacountedforusingtheAcrual BasisofAcounting. areearned,andtheir incured. Theirrevenuesarerecognizedwhenthey expensesarerecognizedwhentheyare BudaetsandBudaetarvAcountina-The proceduresinestablishingthebudgetary thesefinancialstatements: i.thetowntreasurer sametothemayor fiftendaysprior preparesa andboard Townfolowsthese datareflectedin proposedbudgetandsubmits ofaldermen tothebeginingofeachnolaterthan fiscalyear. Thebudgetisadoptedthroughpasageofanordinance priortothecomencementofthefiscalyearforwhichthe budgetisbeingadopted. Budgetaryamendmentsinvolvingthetransferofundsfrom onedepartment,programorfunctiontoanotherorinvolvingincreasesinexpendituresresultingfromrevenues excedingamountsestimatedrequirestheaprovalofthe BoardofAldermen. 15

20 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED 4.Albudgetaryapropriationslapseattheendofeach 5.BudgetsfortheGeneralandSpecialRevenueFundsare fiscalyear. adoptedonabasisconsistentwithgeneralyacepted acountingprinciples(gap).budgetedamountsareas originalyadopted,orasamendedfromtimetotimebythe BoardofAldermen.~udgetsfortheDebtServiceFund,and Investments-InvestmentsareinCertificatesofDepositand SpecialAsesmentFundwerenotadopted. arestatedatcost.interestreceivableonthecertificates ofdepositareacruedtothebalanceshetdate. UnbiledServices-Unbiledservicesarenotreportedas receivablesduetoimateriality. InventoryInventoriesarenotrecordedinthefinancial statementsorthefundsduetoimateriality. RestrictedAsets TheseasetsconsistofcashandCertificatesofDeposit restrictedforwaterworksfunddebtservice. Reserves TheTownrecordsreservestoindicatethataportionofthe FundBalanceislegalysegregatedforaspecialfutureuse. FolowingisalistofalreservesusedbytheTownanda descriptionofeach: ReservedforRevenueBondDebtService-Anamountusedto segregateaportionoffundbalancefordebtserviceresources legalyrestrictedtothepaymentoflong-termdebtprincipal andinterestamountsmaturinginfutureyears. ReservedforRevenueBondRetirementAnamountusedto segregateaportionoffundbalancefordebtservice/resources legalyrestrictedtothepaymentoflong-termdebtprincipal andinterestamountsmaturinginfutureyearswhensuficient amountsarenotreservedinbonddebtserviceacounts. ReservedforRevenueandContingency-Anamounttosegregate aportionoffundbalancefordebtserviceresourcesrestrictedtothepaymentoflong-termdebtprincipalandinterest amountsmaturinginthefutureyearswhensuficientamounts arenotreservedinthedebtserviceandbondretirement Reserveacounts. 16

21 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED AdValoremTaxes Advaloremtaxesatachasanenforceablelienonpropertyas ofmarch16,ofeachyear.taxesareleviedbythetownin SeptemberorOctoberandareactualybiledtothetaxpayers innovember.biledtaxesbecomedelinquentonmarch16,of thefolowingyear.revenuesfromadvaloremtaxesarebudgetedintheyearbiled. TheTownbilsandcolectsitsownpropertytaxesusingthe asesedvaluesdeterminedbythetaxasesorofevangeline Parish. FortheyearendedDecember31,195taxesof20.03Mils wereleviedonpropertywithasesedvaluationstotaling $6,831,450andwerededicatedasfolows: GeneralCorporatePurposes StretMaintenance RecreationMaintenance Total Totaltaxesleviedwere$136, MuniciDalPoliceEmployes'RetirementSvsten~(MPERS PlanDescriptionandProvisions: Mils Mils Mils Mils TwooftheTown'sful-timepolicemployesparticipatein thempers,amultiple-employer,cost-sharingpensionplan. ThepayrolfortheemployescoveredbytheMPERSforthe yearendeddecember31,195was$34,90;thetown'stotal policepayrolwas$285,894.acensusofthegroupisnot availableatdecember31,195. Employesatainingtheearlierageof50with20yearsof serviceorage5with12yearsofservicearentitledtoa monthlybenefitof3and1/3percentofaveragefinalcompensationtimesyearsofcreditableservice(asdefinedinthe plan),nottoexcedi0percentoffinalsalary.active employeswhobecomedisabledwithatleast5yearsofcreditableservicereceive3percentofaveragefinalcompensation(asdefinedintheplan)multipliedbyyearsofcreditableservice,butnotlesthan40percentnormorethan 60percentofaveragefinalcompensation.Ifanactive employedies,hisdesignatedbeneficiaryreceivestheretirementbenefitthememberhasearnedtohisdateofdeath,but notlesthan40percentandnotmorethan60percentofthe member'saveragefinalcompensation. 17

22 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED DescriptionofFundingPolicy: Coveredemployesarerequiredbystatestatutetocontribute 7.5percentoftheirsalarytoMPERS.TheTownisrequired bythisstatutetocontribute9percentofcoveredsalaries tothesystem;plus,thesystemreceivesastateapropriation ofthegrosdirectpremiumsreceivedbylouisianainsurance RatingComision,tometactuarialfundingrequirements. ThecontributionrequirementsfortheyearendingDecember31, 195,was$5,73whichconsistedof$3,149(9%ofcovered payrol)fromthetownand$2,624(7.5%ofcoveredpayrol) fromthecoveredemployes. The31,theoth erthanrequiredcurentcontributions. pensionbenefitobligationisnotavailable 195.Futuredeficitsinthesystemwilbe StateandtheTownhasnofurtherliabilityto atdecember financedby thesystem, BadDebts BaddebtsarewritenofwhentheyaredemedtobeuncollectiblebyTownoficials.Analowanceismadeeachyear fortheamountofreceivableswhichareanticipatedtobe uncolectiblebasedonpriorexperienceandcurentconditions.amountswritenofasbaddebtsfor195areas folows: GeneralFund UtilityFund ComparativeData TotalBadDebts $2,275 $6,145 3,870 ComparativeDatafortheprioryearhavebenpresentedinthe acompanyingfinancialstatementsinordertoprovidean understandingofchangesinthetown'sfinancialpositionand ments)havenotbenpresentedsincetheirinclusionwould operations.however,completecomparativedata(i.e.,presentationofprioryeartotalsbyfundtypeineachofthestate- makethestatementsundulycomplexandificultoread. ComparativeDatafortheprioryearispresentedfortheyear endeddecember31,194. TotalColumnsonCombinedStatements-Overviewarecaptioned memorandumonlytoindicatethattheyarepresentedonlyto presentfinancialposition,resultsofoperations,orchanges facilitatefinancialanalysis.datainthesecolumnsdonot 18

23 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED infinancialpositioninconformitywithgeneralyacepted acountingprinciples.neitherissuchdatacomparabletoa consolidation.interfundeliminationshavenotbenmadein theagregationofthisdata. CapitalizationofInterestCost Interestacruedduringconstructionofprojectsiscapitalizedasacomponentoftheproject.Therewasnointerest capitalizeduringtheyearendeddecember31,195. NOTEB-PROPERTY,PLANT,ANDEQUIPMENT AsumaryofProprietary(Utility)FundTypeProperty,Plant andequipmentatdecember31,195folows: NaturalGasUtility: AutomotiveEquipment GasLines Meters,Aircompresors,Radio Equipment,Etc. OficeEquipment RealEstate WaterUtility: PlantandEquipment OficeEquipment AutomotiveEquipment WaterSystemImprovements SewerageUtility: SewerageLinesandDisposalPlant Land MachineryandEquipment Auto Construction-in-Progres GarbageColection: MachineryandEquipment Total Les:AcumulatedDepreciation Net 19 2, 109,059 40,729 59,46 10,048 10, ,2 $5,367,96 (1,878,357) $3,489,609

24 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED NoteC-ChangesinLong-TermDebt ThefolowingisasumaryofchangesinLong-TermDebtofthe TownfortheyearendedDecember31,195: GeneratObtigationBonds NotesPayabte AdVa[oremTaxesCotlected WithoutAuthorization Totat Payable January1, 195 Aditions 73,529 69,147 $852,676$693,0 Ba[ar~e December31, De(etjons195 73,529 69,147 ~852,676 $693,0Dg $693,0 BondsandNotesPayablearecomprisedofthefolowing: GeneralObligationBonds: $693,0PublicImprovementSalesTaxRefundingBonds,Series 195,oftheTownofMamou,StateofLouisiana,DatedJunei, 195,dueinAnualInstalmentsbeginingAprili,196, Interestat6%peranum. PaymentstoMaturityareasfolows: Year Total Amount $39,0 46,0 51,0 5,0 59,0 63,0 67,0 70,0 73,0 81,0 89,0 $693,0 Thesebondsandnotesaresecuredbysalestaxcolections. 20

25 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED NoteD-EnterpriseFundDebt: RevenueBonds: $456,620ofWaterRevenueBondsoftheTownofMamou,Stateof Louisiana,datedApril6,1989,bearinginterestattherate of1%peranumpayableanualybeginingaprili,190. Payment Date Total CertificatesofIndebtednes: Amount $9, i $ $245,0ofCertificatesofIndebtednesdatedAugusti,1986, bearinginterestatherateof8.5%peranumpayablesemiannualybeginingfebruaryi,1987. Paymentstomaturityareasfolows: Year 196 Amount $35,0 $20,0ofCertificatesofIndebtednesdatedJunei,194, bearinginterestatarateof6.0%peranumpayablesemianualybeginingdecemberi,

26 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED Paymentstomaturityareasfolows: Year Total NoteE-InternalTransactions Amount $16,0 17,0 18,0 19,0 20,0 2,0 23,0 24,0 26,0 Duringthecourseofnormaloperations,theTownhasnumerous transactionsbetwenfundsincludingexpendituresandtransfersofresourcesprimarilytoprovideservices.thegeneral andsalestaxfunds'financialstatementsgeneralyreflect suchtransactionsastransfers,exceptincaseswheretransfersarebelievedtobeadvancesandreimbursementisanticipated.individualfundinterfundreceivableandpayable balancesatdecember31,195arisingfromthesetransactions wereasfolows: Fund GeneralFund SpecialRevenueFunds UtilityFund Totals NotsF-Litigation Intheopinionof claimsagainstthe Interfund Receivable $60,063 6,053 3,27 Interfund P_~able $10,185 17,902 41,306 thetownatorneytheclaimsandpotential Townnotcoveredbyinsurancewouldnot materialyafecthefinancialstatementsofthetown. 2

27 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED NoteG-CompensationofMayorandBoardofAldermen AscheduleofcompensationpaidtotheMayorandBoardof Aldermenisasfolows: WarenPierot~i(Mayor) RickyFontenot J.L.Saucier PhylisSoileau BaryRozas KarelArdoin Total Wages Expense Total $5,40 2,40 2,40 2,40 2,40 2,40 $2,40 1,80 1,80 1,80 1,80 1,80 NoteH-ColateralizationofCash $28,80 Alcashwasadequatelycolateralizedbysecuritiesheldby thetownorinthetown'sname,orinsuredfortheyearended December31,195. NoteI-StatementofCashFlows UnderGovernmentalAcountingStandardsBoardStatementNo.9, algovernmentalentities,whosefiscalyearbeginsafter December15,1989,mustadoptastatementofcashflowsto replacethestatementofchangesinfinancialpositionforal proprietaryfunds. Astatementofcashflowspresentscashandcashequivalents athebeginingandendoftheperiod.cashequivalentsare definedasshort-term,highlyliquidinvestmentsthatare both: a.readilyconvertibletoknownamountsofcash. presentinsignificant ofchangesin Astatementofcashflowsfocusesoncashreceiptsandcash paymentsresultingfromoperating,noncapitalfinancing, capitalandrelatedfinancing,orinvestingactivities. Operatingactivitiesgeneralyresultfromprovidingservices andproducinganddeliveringods,andincludealtransactionsandothereventsthatarenotdefinedasinvesting 23

28 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED activities.cashflowsfromoperatingactivitiesgeneraly arethecashefectsoftransactionsandothereventsthat enterintothedeterminationofoperatingincome. Noncapitalfinancingactivitiesincludeborowingmoneyfor purposesotherthantoacquire,construct,orimprovecapital asetsandrepayingthoseamountsborowed,includinginterest.thiscategoryincludesprocedsfromalborowings toacquisition,constructionorimprovementofcapitalasets, regardlesoftheformoftheborowing.alsoincludedare (suchasrevenueanticipationnotes)notclearlyatributable certainotherinterfundandintergovernmentalreceiptsand payments. producinggods,(b)borowingmoneyforacquiring,constructing,orimprovingcapitalasetsandrepayingtheamounts borowed,includinginterest,and(c)payingforcapital asetsobtainedfromvendorsoncredit. Capitalandrelatedfinancingactivitiesinclude(a)acquiring andisposingofcapitalasetsusedinprovidingservicesor Investingactivitiesincludemakingandcolectingloansand NoteJ-ChangesinContributedCapital-UtilityFund acquiringanddisposingofdebtorequityinstruments. BeginingBalance,Januaryi,195 Aditions:GrantsforSewerConstruction $2,260,563 EndingBalance,December31,195 Deletions:Depreciationatributabletogrants(148,97) $2,501, ,242 NoteK-ChangesinGeneralFixedAsets BeginingBalance,Januaryi,195 EndingBalance,December31,195 Aditions $46, ,063 NOTEL-DefeasedDebt $85,513 OnJunei,195theTownofMamouisuedPublicImprovement SalesTaxRefundingBondsof$693,0withaninterestrateof 6%toadvancerefundtermbondswithaninterestrateranging betwen8%and12%.thetermbondsmatureonaprili,206, andarecalableonaprili,196.therefundingbondswere isuedfor$693,0,andwereusedtopurchaseu.s.governmentsecuritiesandthosesecuritiesweredepositedinan irevocabletrustwithanescrowagentoprovidedebtservice paymentsuntilthetermbondsarecaledonaprili,196. Theadvancerefundingmetherequirementsofanin-substance 24

29 TOWNOFMAMOU NOTESTOFINANCIALSTATEMENTS,CONTINUED debtdefeasanceandthetermbondswereremovedfromthe Asaresultoftheadvancerefunding,theTownreducedits Town'sGeneralLong-TermDebtAcountGroup. totaldebtservicerequirementsby$63,513,whichresultedin aneconomicgain(diferencebetwenthepresentvalueofthe NoteM-HospitalLease debtservicepaymentsontheoldandnewdebt)of$36,57. TheTownofMamouownsahospitalfacilityintheTownof Mamou.InJanuaryof195theTownterminateditsoperating agrementwithsavoymedicalcenter,inc.,andsignedalease withcolumbiahealthcare.thetownreceives$75,0per monthinleasepaymentsforaperiodofi0yearswithfour,5 yearoptions. Asaresultofthistransaction,theTownalsoreceived $2,150,0whichwasreportedasrevenuesintheGeneralFund. TheTown'sHospitalRevenuebondstotalingaproximately $i0,0,0werepaidofasaresultofthistransaction. Thetransactionisubject finalacountingtreatment time. toseveraluncertaintiesandthe hasnotbendeterminedatthis NoteN-PoliceDepartmentFundsNotAlAcountedForOnTown's Thepolicedepartmentreceivedfines,bonds,andadministrativefesthatcouldnotbeacountedforontheTown'sboks. Itapearsthathefundswerecolectedbydispatchersinthe policedepartment,comingledwithfundscolectedbyother dispatchersandthenturnedovertothetownclerk'soficeon aninfrequentbasis.thetownclerk'soficewouldisuea receipttothepolicedepartmentforthefundsatthistime. Itapearsthatthefundsmisedsomewherebetwenthecolectionbythepolicedepartmentandturningitovertothe Clerk'sofice.Thecauseapearstobealackofcontrolsin limitingacestothefunds. Boks Thissituationhasbenstudiedandnewcontrolsarenowin placetolimitacestothefunds,increasethefrequencyof depositsandacountforalfundscolectedbythedepartment. 25

30 CERTIFIEDPUBLICACOUNTANTS JOHNSON&VIDRINE AMERICANINSTITUTEOFCERTIFIEDPUBLICACOUNTANTS SOCIETYOFLOUISIANACERTIFIEDPUBLtOACOUNTANTS MEMBERS: FINANCIALASISTANCE TORS'REPORTON TOtheMayorandTownCouncil TownofMamou,Louisiana Wehaveauditedthegeneralpurposefinancialstatementsofthe TownofMamou,Louisiana,asofandfortheyearendedDecember 31,195,andhaveisuedourreporthereondatedJune28,196. Thesegeneralpurposefinancialstatementsaretheresponsibility ofthetownofmamou,louisiana'smanagement.ouresponsibility istoexpresanopiniononthesegeneralpurposefinancial statementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyacepted auditingstandards,governmentauditing~andards,isuedbythe ComptrolerGeneraloftheUnitedStates,andtheprovisionsof OficeofManagementandBudgetCircularA-128,"AuditsofState andlocalgovernments."thosestandardsandombcirculara-128 requirethatweplanandperformtheauditobtainreasonable asuranceaboutwhetherthegeneralpurposefinancialstatements arefreofmaterialmistatement.anauditincludesexamining, onatestbasis,evidencesuportingtheamountsanddisclosures inthegeneralpurposefinancialstatements.anauditalso includesasesingtheacountingprinciplesusedandsignificant estimatesmadebymanagement,aswelasevaluatingtheoveral financialstatementpresentation.webelievethatouraudit providesareasonablebasisforouropinion. Ourauditwasconductedforthepurposeoforminganopinionon thegeneralpurposefinancialstatementsofthetownofmamou, Louisiana,takenasawhole.Theacompanyingscheduleofederalfinancialasistanceispresentedforpurposesofaditional analysisandisnotarequiredpartofthegeneralpurpose financialstatements.theinformationinthatschedulehasben 26 MICHAELW.JOHNSON,CPA OFICES 105N1THST.,EOBOX529 EUNIC~,LOUISIANA70535 (~IB~4~7#5~ CHARLESNV~DRINE,OPA 4236~HSt.,ROBOX248 MAMOU,LOU,SqANA7054

31 /Johnson&Vidrine CertifiedPublicAcountants Eunice,Louisiana June28,196 theauditofthe whole. ouropinion,is relationtothe 27

32 SCHEDULEOFEDERALFINANCIALASISTANCF TO~/NOFMAMOJ ORTHEYEARENDEDECEMBER31.1~5 FederalGrantor/Pas-Through Federal.Pas-Through GFDAGrantor's NulTberNumber Programor Award Amount Revenue Grant U.S.DEPARTMENTOF EDUCATION Pas-ThroughState Del~rtrtmntofEducation SumerFedingProgram TotalDepartmentof $26,275$26,275$28,452 U.S.DEPARTMENTOFH(~JSING Education ANDURBANDEVELOPMENT Pas-ThroughStateDivision ofadministrationand EnvironmentalProtection AgencyWastewaterTreatment Facitity-LCDBG TotatDepartr~tofHc~Jsing $610,951$38,7~$38,935 U.S.DEPARTMENTOFJUSTICE andurbandevetol~nt No.95-CF-V/(-29 GRANT TotalDepartmentof N/A Justice 28

33 Inplaningandperformingourauditofthegeneralpurpose yearendeddecember31,195,weobtainedanunderstandingofthe financialstatementsofthetownofmamou,louisiana,forthe structure,weobtainedanunderstandingofthedesignofrelevant policiesandproceduresandwhethertheyhavebenplacedin internalcontrolstructure.withrespecttotheinternalcontrol operation,andweasesedcontrolriskinordertodetermineour thegeneralpurposefinancialstatementsandnottoprovidean auditingproceduresforthepurposeofexpresingouropinionon notexpresuchanopinion. opinionontheinternalcontrolstructure.acordingly,wedo Amaterialweaknesisareportableconditioninwhichthedesign oroperationofoneormoreoftheinternalcontrolstructure elementsdoesnotreducetoarelativelylowleveltheriskthat erorsoriregularitiesinamountsthatwouldbematerialin relationtothefinancialstatementsbeingauditedmayocurand notbedetectedwithinatimelyperiodbyemployesinthencrmal courseofperformingtheasignedfunctions. Ourconsiderationoftheinternalcontrolstructurewouldnot necesarilydisclosealmatersintheinternalcontrolstructurethatmightbereportableconditionsand,acordingly,would notnecesarilydisclosealreportableconditionsthatarealso consideredtobematerialweaknesesasdefinedabove.however, wenotedthefolowingreportableconditionsthatwebelieveto bematerialweakneses: Finding: Delinquentutilitybils(predominantly,water andsewerage)werealowedforsomeresidentsof thetownofmamouwithoutcutingoftheutilities. Cause: Recomendation:Policiesforaldelinquentutilitybilsshould LackofimplementationoftheTown'spolicies. benforcedforalresidents.delinquentresidentshouldhavealutilitiescut-ofonthe designatedcut-ofdateandshouldberequired topaythebalanceinfulandthereconectfe beforereconectingtheutilities. 30

34 Management's Response: Weareworkingtowardbeingabletocutof utilitiesforesidentswhodonotpaywithout cutingofpayingcustomers.wehadreduced thistoonly25customers andarecloselymonitoring Finding: atdecember31,195 thisituation. PolicefineandbondmoniesmisingorunaccountedforintheTown'sboks. Cause: ThecontrolsinthePoliceDepartment,asimplemented,werenotsuficienttoacountforal moniescolectedbythedepartment,andthe proceduresdidnotlimitacestodepartment Recomendation:Reviseinternalcontrolstolimitacesto funds,andfundswerenotdepositedaily. ateachshiftchange.also,begindepositing fundsandtohavemoneycountedandsignedfor fundsonadailybasistolimittheamountof Management's fundsavailableatanyonetime. Response: Weconcurinthefindingandhaveimplemented thecontrolprocedures.wearealsoturningour therinvestigation. recordsovertothedistrictatorneyforfur- Finding: Cause: wasrequired. Thedepartmentwasnotawarethatanordinance Recomendation:Pasanordinanceforthesefesordiscontinue Managementrs thepracticeofcolectingthem. Response: Wehavepasedanordinanceauthorizingandsettingtheamountsfortheseadministrativefes. Finding: Therewasalackofcontrolsoverpolicetickets Cause: isuedandturnedin. Newpersonelinpolice awareoftheimportance policetickets. departmentwerenot ofacountingforal 31

35 Recomendation:Implementcontrolsoverpoliceticketsto acountforalpolicetickets. Management's Response: Weconcurinthefindingandareimplementing Alfindingsofprioryearhavebencorectedunlespecified therecomendation. above. Thisreportis TownCouncil. butionofthis intendedfortheinformationofmanagementandthe IW report,whichisamaterofpublicrecord. Thisrestrictionisnotintendedtolimitdistri- Certified & Vidrine Eunice, PublicAcountants June28, Louisiana

36 JOHNSON&VIDRINE CERTIFIEDPUBLICACOUNTANTS MEMBERS: AMERICANINSTITUTEOFCERTIFIEDPUBLICAOUNTANTS SOCIETYOFLOUISIANACERTIFIEDPUBLICAOUN3ANTS AUD CONTROL~TRUCTUREUSEDINADMINISTERING FEDERALFTNANCIALASISTANCEPROGRAMS TotheTownCouncil TownofMamou,Louisiana Wehaveauditedthegeneralpurposefinancialstatementsofthe TownofMamou,Louisiana,asofandfortheyearendedDecember 31,195,andhaveisuedoureportthereondatedJune28,196. WehavealsoauditedthecomplianceoftheTownofMamou,Louisiana,withrequirementsaplicabletomajorfederalfinancial asistanceprogramsandhaveisuedourreporthereondatedjune 28,196. Weconductedourauditsinacordancewithgeneralyacepted auditingstandards;governmentauditinqstandards,isuedbythe ComptrolerGeneraloftheUnitedStates;andOficeofManagementandBudget(OMB)CircularA-128,AuditsofStateandLocal Governments.ThosestandardsandOMBCircularA-128requirethat weplanandperformtheaudittoobtainreasonableasurance aboutwhetherthegeneralpurposefinancialstatementsarefre ofmaterialmistatement,andaboutwhetherthetownofmamou, Louisiana,compliedwithlawsandregulations,noncompliancewith whichwouldbematerialtoamajorfederalfinancialasistance program. InplaningandperformingourauditsfortheyearendedDecember 31,195,weconsideredtheinternalcontrolstructureofthe TownofMamou,Louisiana,inordertodetermineourauditing proceduresforthepurposeofexpresingouropiniononthetown ofmamou,louisiana'sgeneralpurposefinancialstatements,and onthecomplianceofthetownofmamou,louisiana,withrequirementsaplicabletomajorprogramsandtoreportontheinternal controlstructureinacordancewithombcirculara-128.this reportadresesourconsiderationofinternalcontrolstructure policiesandproceduresrelevanttocompliancewithrequirements aplicabletofederalfinancialasistanceprograms.wehave adresedinternalcontrolstructurepoliciesandprocedures relevantourauditofthegeneralpurposefinancialstatements inaseparatereportdatedjune28,196. MICHAELW.JOHNSON,CPA 105N.1THST,I~OBOX529 EUNICE,LOUISIANA70535 ~3~8) OFIOES OHARLSNVIDRINE,CPA 4236~1ST,RO.BOX248 MAMOU,LOUISIANA %~)458-54e.5

37 ThemanagementoftheTownofMamou,Louisiana,isresponsible forestablishingandmaintaininganinternalcontrolstructure. Infulfilingthisresponsibility,estimatesandjudgmentsby managementarerequiredtoasestheexpectedbenefitsand relatedcostsofinternalcontrolstructurepoliciesandprocedures.theobjectivesofaninternalcontrolstructureareto providemanagementwithreasonable,butnotabsolute,asurance thatasetsaresafeguardedagainstlosfromunauthorizeduseor disposition,thattransactionsareexecutedinacordancewith management'sauthorizationandrecordedproperlytopermitthe preparationofgeneralpurposefinancialstatementsinacordance withgeneralyaceptedacountingprinciples,andthatfederal financialasistanceprogramsaremanagedincompliancewith aplicablelawsandregulations.becauseofinherentlimitations inanyinternalcontrolstructure,erors,iregularities,or instancesofnoncompliancemayneverthelesocurandnotbe detected.also,projectionofanyevaluationofthestructureto futureperiodsisubjecttotheriskthatproceduresmaybecome inadequatebecauseofchangesinconditionsorthatheefectivenesofthedesignandoperationofpoliciesandprocedures maydeteriorate. Forthepurposeofthisreport,wehaveclasifiedthesignificantinternalcontrolstructurepoliciesandproceduresusedin administeringfederalfinancialasistanceprogramsintothefollowingcategories:.receipts.disbursements Foraloftheinternalcontrolstructurecategorieslisted.payrol above,weobtainedanunderstandingofthedesignofrelevant policiesandproceduresanddeterminedwhethertheyhaveben placedinoperation,andweasesedcontrolrisk. DuringtheyearendedDecember31,195,theTownofMamou, Louisiana,expended91percentofitstotalfederalfinancial asistanceundermajorfederalfinancialasistanceprograms. Weperformedtestsofcontrols,asrequiredbyOMBCircularA- 128,toevaluatetheefectivenesofthedesignandoperationof internalcontrolstructurepoliciesandproceduresthatweconsideredrelevanttopreventingordetectingmaterialnoncompliancewithspecificrequirements,generalrequirements,and requirementsgoverningclaimsforadvancesandreimbursementsand amountsclaimedorusedformatchingthatareaplicabletoeach ofthetownofmamou,louisiana'smajorfederalfinancialasistanceprograms,whichareidentifiedintheacompanyingschedule 34

38 offederalfinancialassistance. scopethanwouldbenecesaryto internalcontrolstructurepolicies wedonotexpresuchanopinion. Ourprocedureswerelesin andprocedures.acordingly, renderanopiniononthese Ourconsiderationoftheinternalcontrolstructurepoliciesand proceduresusedinadministeringfederalfinancialasistance wouldnotnecesarilydisclosealmatersintheinternalcontrolstructurethatmightconstitutematerialweaknesesunder standardsestablishedbytheamericaninstituteofcertified PublicAcountants.Amaterialweaknesisareportableconditioninwhichthedesignoroperationofoneormoreofthtivelylowleveltheriskthatnoncompliancewithlawsandregulationsthatwouldbematerialtoafederalfinancialasistance internalcontrolstructureelementsdoesnotreducetoarela- programayocurandnotbedetectedwithinatimelyperiodby employesinthenormalcourseofperformingtheirasigned structureanditsoperationsthatweconsidertobematerial weaknesesasdefinedabove. functions.wenotednomatersinvolvingtheinternalcontrol ThisreportisintendedfortheinformationoftheTownCouncil, management,andthelegislativeauditor.however,thisreportis amaterofpublicrecordanditsdistributionisnotlimited. Johnson&Vidrine CertifiedPublicAcountants Eunice,Louisiana June28,196 35

39 JOHNSON&VIDRINE OF:RTIFIEDPUBLICACOUNTANTS MEMBERS: AMERICANINSTITUTEOFCERTIFIEDPUBLICACOUNTANTS SOCIETYOFLOUISIANACERTIFIEDPUBUOACOUNTANTS INDEPENDENTAUDITORS'REPORTONCOMPLIANCE BASEDONANACDITOFGENERALPURPOSEORBASIC FINANCIALSTATEMENTSPERFORMEDINACORDANCEWITH GOVERNMENTAUDITINGSTANDARDS TOtheMayorandTownCouncil TownofMamou,Louisiana Wehaveauditedthegeneralpurposefinancialstatementsofthe TownofMamou,Louisiana,asofandfortheyearendedDecember 31,195,andhaveisuedoureporthereondatedJune28,196. Weconductedourauditinacordancewithgeneralyacepted auditingstandards,andgovernmentauditinqstandards,isuedby thecomptrolergeneraloftheunitedstates.thosestandards requirethatweplanandperformtheaudittoobtainreasonable asuranceaboutwhetherthefinancialstatementsarefreof materialmistatement. Compliancewithlaws,regulations,contracts,andgrantsaplicabletotheTownofMamou,Louisiana,istheresponsibilityofthe TownofMamou,Louisiana's,management.Aspartofobtaining reasonableasuranceaboutwhetherthegeneralpurposefinancial statementsarefreofmaterialmistatement,weperformedtests ofthetownofmamou,louisiana'scompliancewithcertainprovisionsoflaws,regulations,contracts,andgrants.however,the objectiveofourauditofthegeneralpurposefinancialstatementswasnottoprovideanopiniononoveralcompliancewith suchprovisions.acordingly,wedonotexpresuchanopinion. Theresultsofourtestsdisclosedthefolowinginstancesof noncompliancethatarerequiredtobereportedhereinunder GovernmentAuditingStandards,forwhichtheultimateresolution canotpresentlybedetermined.acordingly,noprovisionfor anyliabilitythatmayresulthasbenrecognizedinthetownof Mamou,Louisiana's195financialstatements. TheTownofMamou,Louisiana'spolicedepartmentwascolecting administrativefeswithoutatownordinance.thegeneralpurposefinancialstatementsdonotincludeanadjustmentforany liabilitythatmayresultfromtheactionsoftheentityin 36 MICHAELW,JOHNSON,CPA 105N1THS'L,ROBOx529 EUNICE,LOUISIANA70535 ~818)45~7951 OFICES CHARLESNVIDRINE,CPA 4236~HST.,R0BOX248 MAMOU,LOUlSqANA7054 t318)45~-54~5

40 relationtothecolectionofadministrativefeswithoutan ordinance. TheTownofMamou,Louisiana'spolicedepartmenthadmonies misingorunacountedfor.thetownofmamou,louisiana's generalpurposefinancialstatementsdonotincludeanadjustment foranyliabilityoreceivablethatmayresultfromtheactions ofthentityinrelationtothepolicedepartmentcolections notbeingacountedforonthetown'sboks. Weconsideredtheseinstancesofnoncomplianceinformingour opiniononwhetherthetownofmamou,louisiana's195general purposefinancialstatementsarepresentedfairly,inalmaterialrespects,inconformitywithgeneralyaceptedacounted principles,andthisreportdoesnotafectoureportdatedjune 28,196,onthosegeneralpurposefinancialstatement. ThisreportisintendedfortheinformationoftheTownCouncil, management,andthelegislativeauditor.however,thisreportis amaterofpublicrecordanditsdistributionisnotlimited. vjohnson& Certified Eunice, June28, Louisiana 196 Vidrine PublicAcountants 37

41 CERTIFIEDPUBLICACOUNTANTS JOHNSON&VIDRINE AMERICANINSTITUTEOFCERTIFIEDPUBLICAOUNTANTS SOCIETYOFLOUISIANAOEI~TIFIEDPUBLICACOUNTANTS MEMBERS: WITHSPECIFICREOUIREMENTSAPLICABLETOMAJOR FEDERALFINANCIALASISTANCEPROGRAMS TotheMayorandBoardofAldermen TownofMamou,Louisiana Wehaveauditedthegeneralpurposefinancialstatementsofthe TownofMamou,Louisiana,asofandfortheyearendedDecember 31,195,andhaveisuedoureportthereondatedJune28,196. WehavealsoauditedtheTownofMamou,Louisiana'scomplianc withtherequirementsgoverningtypesofservicesalowedo unalowed;eligibility;matching,levelofefort,orearmarking reporting;claimsforadvancesandreimbursements;andamount claimedorusedformatchingthatareaplicabletoeachofit majorfederalfinancialasistanceprograms,whichareidentifie intheacompanyingscheduleoffederalfinancialasistance,fo theyearendeddecember31,195.themanagementofthetowno Mamou,Louisiana,isresponsiblefortheTownofMamou,Louisi ana'scompliancewiththoserequirements.ouresponsibilityi toexpresanopiniononcompliancewiththoserequirementsbase onouraudit. Weconductedourauditofcompliancewiththoserequirementsin acordancewithgeneralyaceptedauditingstandards;government AuditinqStandards,isuedbytheComptrolerGeneralofthe UnitedStates;andOficeofManagementandBudgetCircularA- 128,AuditsofStateandLocalGovernments.Thosestandardsand OMBCircularA-128requirethatweplanandperformtheauditto obtainreasonableasuranceaboutwhethermaterialnoncompliance withtherequirementsreferedtoaboveocured.anaudit includesexamining,onatestbasis,evidenceaboutthetownof Mamou,Louisiana'scompliancewiththoserequirements.Webelievethatourauditprovidesareasonablebasisforouropinion. Theresultsofourauditproceduresdidnotdiscloseanyimaterialinstancesofnoncompliancewiththerequirementsreferedto above. 38 MICHAELW,JOHNSON,CPA 105N1]HST.,ROBOX529 OFICES EUN~CE,LOUISIANA70535 t378~4~7-7e51 CHARLESN.VIDRINE,CPA 4236tHS~.,ROBOX248 MAMOU,LOU,SIANA7054 [318)45~-545b