INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Louisiana. Component Unit Financial Statements June 30,2004

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1 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Luisiana Cmpnent Unit Financial Statements June 30,2004 Under prvisins f state law, this reprt is a public dcument. Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public inspectin at the Batn Ruge ffice f the Legislative Auditr and. where apprpriate, at the ffice f the parish clerk f curt. Release Date 2-2 ~ O 5

2 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. JENNINGS, LOUISIANA COMPONENT UNIT FINANCIAL STATEMENTS JUNE 30,2004 TABLE OF CONTENTS Independent Accuntant's Cmpilatin Reprt n Cmpnent Unit Financial Statements 2 Cmpnent Unit Financial Statements Balance Sheet 3 Statement f Revenues, Expenditures, And Changes in Fund Balance 4 Statement f Revenues, Expenditures, and Changes In Fund Balance-Budget and Actual 5 Ntes t the Financial Statements 6-9 Additinal Reprts 10 Independent Accuntant's Reprt n Applying Agreed Upn Prcedures Luisiana Attestatin Questinnaire Summary Schedule f Prir Attestatin Findings 16 Crrective Actin Plan fr Current Year Audit Findings 17 Page

3 EDWARD L. KRIELOW A PROFESSIONAL ACCOUNTING CORPORATION 510 N. CUTTING P.O. DRAWER 918 JENNINGS, LA (318) Industrial Develpment Bard f the City f Jennings, Inc. Jennings, Luisiana INDEPENDENT ACCOUNTANT'S COMPILATION REPORT I have cmpiled the accmpanying cmpnent unit financial statements f the Industrial Develpment Bard f the City f Jennings, Inc., as f June 30, 2004, and fr the year then ended, in accrdance with Statements n Standards fr Accunting and Review Services issued by the American Institute f Certified Public Accuntants. A cmpilatin is limited t presenting in the frm f financial statements infrmatin that is the representatin f management. I have nt audited r reviewed the accmpanying cmpnent unit statements, and, accrdingly, d nt express an pinin r any ther frm f assurance n them. Jennings, Luisiana December 19, 2004 FINANCIAL STATEMENTS, OR IF PREPARED WITHOUT AUDIT HIOM INFORMATION FURNISHED. THE PUBLICATION OF MY NAME IN CONNECTION WITH ANY EXCERPT FROM THIS REPORT MAY BE MADE ONLY WITH MY CONSENT AND W A FORM APPROVED BY US.

4 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. JENNINGS, LOUISIANA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,2004 ASSETS GOVERNMENTAL FUND TYPE GENERAL FUND ACCOUNT GROUP GENERAL FIXED ASSETS 2004 TOTAL (MEMORANDUM ONLY) Cash & cash equivalents Prperty, plant and equipment Other Assets $ 15, $ 0 351,147 0 $ 15, , TOTAL ASSETS $ 16,493 $ 351,147 $ 367,640 LIABILITIES AND FUND BALANCE Liabilities: Accunts Payable Fund Balance: Investment in general fixed assets U nreserved-undesignated Ttal Fund Balance 0 16,493 16, , , ,147 16, ,640 TOTAL LIABILITIES AND FUND BALANCE $ 16, , ,640 The Accmpanying Ntes And Cmpilatin Reprt Are An Integral Part Of This Statement 3

5 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. JENNINGS. LOUISIANA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2004 REVENUES Intergvernmental Revenue: City f Jennings Use f mney and prperty: Interest incme Miscellaneus revenue: Dispsitin f asset 35, Ttal Revenues EXPENDITURES Operating services: Materials and supplies Travel and ther charges Advertising, dues & subscriptins Other expenses: Prfessinal Fees Cntract Labr Hank Charges Capital utlay: Strand Imprvements Funders Park Imprvements Furniture & Equipment Grants Facade Rehab 35, , ,084 24, ,250 Ttal Kxpenditures Excess f (expenditures) ver revenues Fund balance (deficit), beginning f year Fund balance, end f year 48,821 (12,993) 29,486 16,493 The Accmpanying Ntes And Cmpilatin Reprt Are An Integral Part Of This Statement 4

6 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. JENNINGS, LOUISIANA GENERAL FUND STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2004 REVENUES Intergvernmental Revenue: City f Jennings Use f mney and prperly: Interest incme Miscellaneus revenue: Dispsitin f asset $ GENERAL FUND VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 35,000 $ 0 35,000 $ Ttal Revenues $ 35,000 $ 35,828 $ 828 EXPENDITURES Operating services: Materials and supplies Travel and ther charges Advertising, dues & subscriptins Other expenses: Audit Fees Cntract Labr Bank Charges Capital utlay: Strand Imprvements Funders Park Imprvements Furniture & Equipment Grants Facade Rehab $ 2, ,800 16,000 33% 0 $ 773 $ ,084 24, ,250 (773) (735) (3,228) 0 1,150 (12) 2,916 (24,619) 2,146 Ttal Expenditures $ 24,846 I 48,821 S (23,975) Excess f expenditures ver revenues S 10,154 $ (12,993) J (23,147) Fund balance (deficit), beginning f year 30, (768) Fund balance, end f year J 40,408 $ 16,493 $ (23,915) The Accmpanying Ntes And Cmpilatin Reprt Are An Integral Part Of This Statement 5

7 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Luisiana Ntes t the Financial Statements As f and fr the Year Ended June 30, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Industrial Develpment Bard f the City f Jennings, Inc. (the Bard) was incrprated May 30,1990, and is a quasi-public crpratin. A quasi-public crpratin is a crpratin created specifically t assist gvernment in prviding public services via public funds flwing thrugh the crpratin. The Bard was created and authrized by state statute t prvide n-ging public services f ecnmic develpment in and arund the City f Jennings. As such, it is cntrlled by the creating state statutes and subject t the general laws f the state, as well as the grant and cntract prvisins f its funding agencies. In general it is subject t the same laws and cnstraints as its public agency cunterparts. The Bard is gverned by a Bard f Directrs wh are appinted by the City Cuncil f the City f Jennings t varying terms. N cmpensatin is paid t the Bard members. The fllwing is a summary f the mre significant plicies. A. BASIS OF PRESENTATION The accmpanying financial statements have been prepared in cnfrmity with generally accepted accunting principles (GAAP) as applied t gvernmental units. The Gvernmental Accunting Standards Bard (GASB) is the accepted standard-setting bdy fr establishing gvernmental accunting and financial reprting principles. B. REPORTING ENTITY Gvernmental Accunting Standards Bard (GASB) Statement N. 14 established criteria fr determining which cmpnent units shuld be included within the reprting entity. The basic criterin fr including a ptential cmpnent unit within the reprting entity is the financial accuntability. The GASB has set frth criteria t be cnsidered in determining financial accuntability. This criteria includes: 1. Appinting a vting majrity f an rganizatin's gverning bdy, and a. The ability f the City t impse its will n the rganizatin and /r b. The ptential fr the rganizatin t prvide specific financial benefits t r impse specific financial burdens n the City. 2. Organizatin fr which the City des nt appint a vting majrity but are fiscally dependent n the City. 3. Organizatins fr which the reprting entity financial statements wuld be misleading if data f the rganizatin is nt included because f the nature r significance f the relatinship.

8 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Luisiana Ntes t the Financial Statements As f and fr the Year Ended June 30,2004 Because the Industrial Develpment Bard is fiscally dependent n the City f Jennings, the Bard was determined t be a cmpnent unit f the City f Jennings, the gverning bdy with the versight respnsibility. The accmpanying financial statements present infrmatin nly n the funds maintained by the Bard and d nt present infrmatin f the City f Jennings, the general gvernment services prvided by that gvernmental unit, r the ther gvernmental units that cmprise the gvernmental reprting entity. C. FUND ACCOUNTING The accunts f the Bard are rganized n the basis f fluids and accunt grups, each f which is cnsidered a separate accunting entity. The peratins f each fund are accunted fr with a separate set f selfbalancing accunts, as apprpriate. Revenues are accunted fr in these individual funds based upn the purpse fr which they are t be spent and the means by which spending activities are cntrlled. On the ther hand, an accunt grup is a financial reprting device designed t prvide accuntability fr certain assets and liabilities that are nt recrded in the funds because they d nt directly affect net expendable available financial resurces. The funds arid accunt grups presented in the financial statements are gruped int generic fund types and brad fund categries as fllws: GOVERNMENTAL FUNDS General Fund-The General Fund is the general perating fund f the Bard. It is used t accunt fr all financial resurces except thse required t be accunted fr in ther funds. FIXED ASSETS Fixed assets used in gvernmental fund type peratins (general fixed assets) are accunted fr in the general fixed assets accunt grup, rather than in gvernmental funds. Public dmain r infrastructures are nt capitalized. N depreciatin has been prvided n general fixed assets. All fixed assets are valued at histrical cst. D. BASIS OF ACCOUNTING The accunting and financial reprting treatment applied t a fund is determined by its measurement fcus. All gvernmental funds are accunted fr using a current financial resurces measurement fcus. With this measurement fcus, nly current assets and current liabilities are generally included n the balance sheet. Operating statements f these funds present increases and decreases in net current assets. The mdified accrual basis f accunting is used by all gvernmental funds. The gvernmental fund used the fllwing practices in recrding revenues and expenditures:

9 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Luisiana Ntes t the Financial Statements As f and fr the Year Ended June 30,2004 Revenues are recgnized in the accunting perid in which they becme available and measurable. Expenditures are recgnized in the accunting perid in which the fund liability is incurred, if measurable, except fr unmatured interest n general lng-term debt, which is recgnized when due. E. BUDGETARY PRACTICES The Bard used the fllwing budgetary practices; Fr the year ended June 30,2004, the Bard adpted a budget fr the general fund n a basis cnsistent with generally accepted accunting principles (GAAP). Peridic budget cmparisns were made during the year and amendments were made when deemed necessary. All budgetary apprpriatins lapse at the end f each fiscal year. Frmal encumbrance accunting is nt utilized by the Bard. The Bard did nt make any amendments t its budget included in this reprt. F. PERSONNEL POLICIES The Bard has n emplyees and accrdingly has n persnnel plicies. G. TOTAL COLUMNS ON COMBINED STATEMENTS Ttal clumns n the cmbined statements are captined "Memrandum Only" t indicate that they are presented nly t facilitate financial analysis. Data in these clumns d nt present financial psitin, results f peratins, r changes in financial psitin in cnfrmity with generally accepted accunting principles. Neither is such data cmparable t a cnslidatin. Interftmd eliminatins have nt been made in the aggregatin f this data. 2. CASH AND CASH EQUIVALENTS Pursuant t State law the Bard may depsit funds in demand depsits, interest bearing demand depsits, mney market accunts, r time depsits with state banks rganized under the laws f Luisiana and Natinal Banks having principal ffices in the State. Investments may include instruments r bligatins issued by the United States Gvernment r its agencies, time certificates f depsit f certain banks, r any ther federally issued investment. At June 30, 2004, the Bard has cash and cash equivalents (all unrestricted) ttaling $15,638 as fllws: Interest bearing demand depsits $

10 INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF JENNINGS, INC. Jennings, Luisiana Ntes t the Financial Statements As f and fr the Year Ended June 30,2004 These depsits are stated at cst, which apprximates market. Under state law, these depsits (r the resulting bank balances) must be secured by federal depsit insurance r the pledge f securities wned by the fiscal agent bank. The market value f the pledged securities plus the federal depsit insurance must at all times equal the amunt n depsit with the fiscal agent. These securities are held in the name f the pledging fiscal agent bank in a hlding r custdial bank that is mutually acceptable t bth parties. Cash and cash equivalents (bank balances) at June 30,2004, are secured as fllws: Bank Balance $ Insured (FDIC) $ CHANGES IN GENERAL FIXED ASSETS A summary f changes in general fixed assets fllws: Balance At Additins Dispsitins Balance At Imprvements Equipment Buildings Other $ 217,111 11,622 55, $ 13,739 $ 820 1, $ 230,850 10,602 55, Ttal $ $ $ $ COMPENSATION PAID TO BOARD MEMBERS The Bard paid n cmpensatin t bard members fr the year ended June 30, LITIGATION At June 30,2004, the Bard was nt invlved in any litigatin.

11 ADDITIONAL REPORTS 10

12 Industrial Develpment Bard f the City f Jennings, Inc. Jennings, Luisiana EDWARD L. KRIELOW A PROFESSIONAL ACCOUNTING CORPORATION 510 N. CUTTING P.O. DRAWER 918 JENNINGS, LA (318) INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES I have perfrmed the prcedures included in the Luisiana Gvernment Audit Guide and enumerated belw, which were agreed t by the management f the Industrial Develpment Bard f the City f Jennings, Inc. and the Legislative Auditr, State f Luisiana, slely t assist the users in evaluating management's assertins abut the Industrial Develpment Bard's cmpliance with certain laws and regulatins during the year ended June 30, 2004 included in the accmpanying Luisiana Attestatin Questinnaire. This agreed-upn prcedures engagement was perfrmed in accrdance with standards established by the American Institute f Certified Public Accuntants. The sufficiency f these prcedures is slely the respnsibility f the specified users f the reprt. Cnsequently, I make n representatins regarding the sufficiency f the prcedures described belw either fr the purpse fr which this reprt has been requested r fr any ther purpse. Pubic Bid Law 1. Select all expenditures made during the year fr material and supplies exceeding $20,000, r public wrks exceeding $ 100,000, and determine whether such purchases were made in accrdance with LS A- RS 38: (the public bid law). I examined the Industrial Develpment Bard's expenditures during the year and fund nne fr material and supplies which exceeded $20,000 r any fr public wrks which exceeded $100,000. Cde f Ethics fr Public Officials and Public Emplyees 2. Obtain frm management a list f the immediate family members f each bard member as defined by LSA-RS 42: (the cde f ethics), and a list f utside business interests f all bard members and a list f utside business interests f all bard members and emplyees, as well as their immediate families. Management prvided us with the required list including the nted infrmatin. 3. Obtain frm management a listing f all emplyees paid during the perid under examinatin. The Bard has n emplyees. 11

13 4. Determine whether any f thse emplyees included in the listing btained frm management in agreedupn prcedures (3) were als included n the listing btained frm management in agreed-upn prcedures (2) as immediate family members. The Bard has n emplyees; therefre this determinatin is nt applicable. Budgeting 5. Obtain a cpy f the legally adpted budget and all amendments. Management prvided us with a cpy f the riginal budget. There were n amendments t the budget during the year, 6. Trace the budget adptin and amendments t the minute bk. I traced the adptin f the riginal budget t the minutes f a meeting held n June 24,2003. N amendments were made t the budget during the year. 7. Cmpare the revenues and expenditures f the final budget t actual revenues and expenditures t determine if actual revenues r expenditures exceed budgeted amunts by mre than 5%. Since the Bard des nt have any special revenue funds with anticipated expenditures f $250,000 r mre, it is exempt frm this prcedure. Accunting and Reprting 8. Randmly select 6 disbursements made during the perid under examinatin and: (a) trace payments t supprting dcumentatin as t prper amunt and payee; I examined supprting dcumentatin fr each f the six selected disbursements and fund that the payment was fr the crrect payee and prper amunt, except fr ne payment. One invice was verpaid by $655 when the Bard failed t claim a discunt t which they were entitled. The vendr in questin was cntacted and has agreed t refund the verpayment.. (b) determine if payments were prperly cded t the crrect fund and general ledger accunt; and All f the payments examined were either prperly cded t the crrect fund and general ledger accunt r crrected with year end adjusting entries. (c) determine whether payments received apprval frm prper authrities; Inspectin f dcumentatin supprting each f the six selected disbursements indicated apprvals by an authrized individual. Meetings 9. Examine evidence indicating that agendas fr meetings recrded in the minute bk were psted r 12

14 advertised as required by LSA-RS 42:1 thrugh 42:12 (the pen meetings law). The Industrial Develpment Bard psts a ntice f each meeting n the dr f the Bard's museum building where the meetings are held at least 24 hurs befre any scheduled meeting. Debt 10. Examine bank depsits fr the perid under examinatin and determine whether any such depsits appear t be prceeds f bank lans, bnds, r like indebtedness. I inspected cpies f all depsit slips fr the perid under examinatin and nted n depsits which appeared t be prceeds f bank lans, bnds, r like indebtedness. Advances and Bnuses 1 1. Examine payrll recrds and minutes fr the year t determine whether any payments have been made t emplyees which may cnstitute bnuses, advances, r gifts. The Bard has n emplyees; therefr the prcedure is nt applicable. I was nt engaged t, and did nt, perfrm an examinatin, the bjective f which wuld be the expressin f an pinin n management's assertins. Accrdingly, I d nt express such an pinin. Had I perfrmed additinal prcedures, ther matters might have cme t my attentin that wuld have been reprted t yu. This reprt is intended slely fr the use f management f the Industrial Develpment Bard f the City f Jennings, Inc. and the Legislative Auditr, State f Luisiana, and shuld nt be used by thse wh have nt agreed t the prcedures and taken respnsibility fr the sufficiency f the prcedures fr their purpses. Hwever, this reprt is a matter f public recrd and its distributin is nt limited. Jennings, Luisiana December 19,

15 LOUISIANA ATTESTATION QUESTIONNAIRE (Fr Attestatin Engagements f Gvernment) /flflc (Date Transmitted) mas ^ ' LJ (Auditrs) In cnnectin with yur review f ur financial statements as f [date] and fr the year then ended, and as required by Luisiana Revised Statute 24:513 and the Luisiana Gvernmental Audit Guide, we make the fllwing representatins t yu. We accept full respnsibility fr ur cmpliance with the fllwing laws and regulatins and the internal cntrls ver cmpliance with such laws and regulatins. We have evaluated ur cmpliance with the fllwing laws and regulatins prir t making these representatins. These representatins are based n the infrmatin available t us as f (date f cmpletin/representatins). Public Bid Law it is true that we have cmplied with the public bid law, LSA-RS Tide 38:2212, and, where applicable, the regulatins f the Divisin f Administratin, State Purchasing Office.. / Yesf/] N[ ] Cde f Ethics fr Public Officials and Public Emplyees It is true that n emplyees r fficials have accepted anything f value, whether in the frm f a service, lan, r prmise, frm anyne that wuld cnstitute a vilatin f LSA-RS 42:110/ N It is true that n member f the immediate family f any member f the gverning authrity, r the chief executive f the gvernmental entity, has been emplyed by the gvernmental entity after April 1,1980, under circumstances that wuld cnstitute a vilatin f LSA-RS 42:1119. / Yes [ L M r j N L [ j 1 Budgeting We have cmplied with the state budgeting requirements f the Lcal Gvernment Budget Act (LSA-RS 39: ) r the budget requirements f LSA-RS 39:34. / Yes[vf N[ ] Accunting and Reprting All nn-exempt gvernmental recrds are available as a public recrd and have been retained fr at least three years, as required by LSA-RS 44:1,44:7,44:31, and 44:36. N[ 14

16 We have filed ur annual financial statements in accrdance with LSA-RS 24:514, 33:463, and/r 39:92, as applicable. We have had ur financial statements audited r cmpiled in accrdance with LSA-RS 24:01 3. Yes( VfNl Meetings We have cmplied with the prvisins f the Open Meetings Law, prvided in RS 42:1 thrugh 42:12. Debt It is true we have nt incurred any indebtedness, ther than credit fr 90 days r less t make purchases in the rdinary curse f administratin, nr have we entered int any lease-purchase agreements, withut the apprval f the State Bnd Cmmissin, as prvided by Article VII, Sectin 8 f the 1974 Luisiana Cnstitutin, Article VI, Sectin 33 f the 1974 Luisiana. Cnstitutin, and LSA-RS 39: / Yes[VI N[ ] Advances and Bnuses It is true we have nt advanced wages r salaries t emplyees r paid bnuses in vilatin f Article VII, Sectin 14 f the 1974 Luisiana Cnstitutin, LSA-RS 14:138, and AG pinin / N[ We have disclsed t yu all knwn nncmpliance f the freging laws and regulatins, as well as any cntradictins t the freging representatins. We have made available t yu dcumentatin relating t the freging laws and regulatins. We have prvided yu with any cmmunicatins frm regulatry agencies r ther surces cncerning any pssible nncmpliance with the freging laws and regulatins, including any cmmunicatins received between the end f the perid under examinatin and the issuance f this reprt We acknwledge ur respnsibility t disclse t yu any knwn nncmpliance whichmay ccur subsequent t the issuance f yur reprt Secretary / Z - 7- (>4 Date Treasurer / '?-&*/ Date President * 2-7 &^ Q^Q 15

17 a, t3 O ~g g O O E.g u *s,9 s c t5 U y 5 < < (N JS E "» ISH i i u q.u {/I s0. O Jw> u a u <SH yi ^Q COX' > c = fc -=5.2 I «c.ti CM en O O(N

18 zn^ rf\ VJ u z tri >-3 u. O > HM EVELOPMENT BOARD OF THE C JENNINGS, LOUISIANA fi -1 < Z H Cfi Q Z t/3 O z ^ ^ z N^ u- HNM Q ^<s * v S < M fcd " ACTION PLAN FOR CURRENT Y FOR THE YEAR ENDED JUNE 3 Ed M H U Ed tf *O u Cmletin Date Persnal 13 <y a! c.2^3 < a*> V- O 01.S a ix ^-. c _ ^ t-> CJ in <L* Q Plly Henry December 2004 DJJ CO -> * - "(3 2 CA a 1 ^3 T3 O 03 1 T3 <L> i en tc 1(*-* S i> ^S j= d> *rf 8 3OS Ouu *-> c V cd <+* Q X) T3 & 10. O u V l- J5 (X (-..4 T3 C<L> U S -» w <L» 4-1 O G en (3 ^* > t/t H fl i QJ l^ i«3 X) EA 'O u ō ^^ tn CJ - u -C *J verpaymen dividual f^kbrt I-r <s s M a- i "i > 5 c -a a & C/l «51^ OJ CJ '.s cuc J n S 5 r O CO < 1) a 6 5 u J3 I * C3 4> 1 T3 S3 y respnsible invices wil payments f J3 ej 15 S ^ *j tn 2 ^rf </> rt g t" 1 S J3»^i»n ^ CA TJ i^-l O),u H *-* 3 ^ t *H O 1 rt CQ t review ; instruct *r^o _4> *- ^ * C 1 _-! j= iq +- CA +J G 3 O a (A entitled. ^1 (N

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

d^^ GRIFFIN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS Stephen M. Griffin, CPA Rbert J. Furman, CPA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES T the Bard Members Luisiana State