Monroe-West Monroe (Ouachita Parish) Public Trust Financing Authority. Financial Statements. For The Years Ended July 31,2007 and 2006

Transcription

1 Mnre-West Mnre (uahita Parish) Publi Trust Finaning Authrity Finanial Statements Fr The Years Ended July 31,27 and 26 Under prvisins f state law, this reprt is a publi dument. Apy f the reprt has been submitted t the entity and ther apprpriate publi ffiials. The reprt is available fr publi inspetin at the Batn Ruge ffie f the Legislative Auditr and, where apprpriate, at the ffie f the parish lerk f urt. Release Date

2 MNRE-WEST MNRE (UACHTA PARSH) PUBLC TRUST FNANCNG AUTHRTY FNANCAL STATEMENTS FR THE YEARS ENDED JULY 31,27 AND 26 TABLE F CNTENTS ndependent Auditrs' Reprt 2 Finanial Statements ndividual Fund Balane Sheets as f July 31,27 3 PAGE ndividual Fund Statements f Revenues, Expenses, and Changes in Fund Balanes fr the Year Ended July 31,27 4 ndividual Fund Statements f Cash Flws fr the Year Ended July 31, ndividual Fund Balane Sheets as f July 31,26 7 ndividual Fund Statements f Revenues, Expenses, and Changes in Fund Balanes fr the Year Ended July 31, 26 8 ndividual Fund Statements f Cash Flws fr the Year Ended July 31, Ntes t ndividual Fund Statements ther ndependent Auditrs' Reprt ndependent Auditrs' Reprt n nternal Cntrl ver Finanial Reprting and n Cmpliane and ther Matters Based n an Audit f Finanial Statements Perfrmed in Ardane with Gvernment Auditing Standards 16-17

3 LTTLE & ASSCATES LLC CERTFED PUBLC ACCUNTANTS Wm. TDD UTTLE, CPA CHARLES R. MARCHBANKS, JR., CPA NDEPENDENT AUDTRS' REPRT T the Bard f Trustees f the Mnre-West Mnre (uahita Parish) Publi Trust Finaning Authrity Mnre, Luisiana We have audited the ampanying individual prgram and unrestrited fund balane sheets f the Mnre-West Mnre (uahita Parish) Publi Trust Finaning Authrity (the "Authrity'*) as f July 31, 27 and 26, and the related individual statements f revenues, expenses and hanges in fund balanes and ash flws fr the years then ended. These finanial statements are the respnsibility f the Authrity's management. ur respnsibility is t express an pinin n these finanial statements based n ur audits. We nduted ur audits in ardane with U.S. generally aepted auditing standards and standards appliable t finanial audits ntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Thse standards require that we plan and perfrm the audits t btain reasnable assurane abut whether the finanial statements are free f material misstatement. An audit inludes examining, n a test basis, evidene supprting the amunts and dislsures in the finanial statements. An audit als inludes assessing the aunting priniples used and signifiant estimates made by management, as well as evaluating the verall finanial statement presentatin. We believe that ur audits prvide a reasnable basis fr ur pinin. n ur pinin, the finanial statements referred t abve present fairly, in all material respets, the finanial psitin f eah f the individual prgrams and the unrestrited fund f the Authrity as f July 31, 27 and 26, and their revenues, expenses and hanges in fund balanes and their ash flws fr the years then ended in nfrmity with U.S. generally aepted aunting priniples. n ardane with Gvernment Auditing Standards* we have als issued ur reprt dated January 24, 28, n ur nsideratin f the Authrity's internal ntrl ver finanial reprting and n ur tests f its mpliane with ertain prvisins f laws, regulatins, ntrats and grant agreements and ther matters. The purpse f that reprt is t desribe the spe f ur testing f internal ntrl ver finanial reprting and mpliane and the results f that testing, and nt t prvide an pinin n the internal ntrl ver finanial reprting r n mpliane. That reprt is an integral part f an audit perfrmed in ardane with Gvernment Auditing Standards and shuld be nsidered in assessing the results f ur audits. Mnre, Luisiana January 24,28-2- PHNE (318) FAX (318) NRTH 31" STREET * MNRE. LA MALNG ADDRESS: P.. BX 4058 * MNRE, LA

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12 MNRE-WEST MNRE (UACHJTA PARSH) PUBLC TRUST FNANCNG AUTHRTY NTES T THE NDVDUAL FUND STATEMENTS FR THE YEARS ENDED JULY 31, 27 AND RGANZATN The Mnre-West Mnre (uahita Parish) Publi Trust Finaning Authrity (the Authrity) was reated thrugh a Trust ndenture dated February 28, 1979, pursuant t prvisins f Chapter 2-A f Title 9 f the Luisiana Revised Statutes f 1950, as amended. The initial legislatin and subsequent amendments grant the Authrity the pwer t btain funds and t use them t prmte the finaning and develpment f any essential prgram nduted in the publi interest within the bundaries f uahita Parish, Luisiana. The Authrity's peratins were riginated thrugh tw single family mrtgage revenue bnd prgrams issued in 1979 and 1980 under whih the Authrity prmted residential hme wnership thrugh the aquisitin f mrtgage lans seured by first mrtgage liens n single family residential husing. n July 27, 1988, the Authrity issued $26,756,893 in Taxable Cllateralized Mrtgage Refunding Bnds dated July 1, 1988 (the 1988 Prgram), fr the purpse f prviding fr the satisfatin f all future debt servie bligatins f the utstanding bnds f the Authrity's 1979 Prgram. The Authrity entered int an Esrw Depsit Agreement with a lal bank pursuant t whih there have been depsited suffiient funds and U. S. Gvernment bligatins (as defined in the 1979 ndenture) t prvide fr repayment f the 1979 bnds pursuant t the 1979 ndenture. Simultaneusly, the mrtgage lans reeivable and ertain funds f the 1979 Prgram were transferred t the 1988 Prgram and t the Authrity's Unrestrited Fund. The Authrity prvided additinal seurity fr the repayment f the Bnds Payable in the amunt f $110,0 n the date f refinaning. This amunt is inluded in U. S. Gvernment Seurities and will revert t the Unrestrited Fund when the Bnds are paid. n Nvember 30, 1990, the Authrity issued $3,360,0 in Revenue Refunding Bnds (the 1990A Prgram) and $1,560,0 in Taxable Refunding bnds (the 1990B Prgram). n Deember 31, 1990, the Authrity issued $12,0,0 par value in Tax-Exempt Capital Appreiatin Refunding Bnds (1990C Prgram). The preeds frm these bnds alng with the preeds frm the sale f the 1980 Prgram investments were used t redeem the utstanding 1980 prgram bnds payable. Simultaneusly, the 1980 Prgram mrtgage lans reeivable were transferred t the 1990A and 1990B Prgrams. Upn redemptin f all 1990B Prgram bnds payable, the remaining assets in the 1990B Prgram have reverted t the 1990C Prgram as seurity fr its bnds payable. Additinally, upn redemptin f all 1990A Prgram bnds payable, the remaining assets in the 1990A Prgram have reverted t the 1990C Prgram bnds as seurity fr its bnds payable. The bnds issued by the Authrity are general bligatins f the Authrity and are nt bligatins f the State f Luisiana r any ther plitial subdivisin theref. The Authrity's Bard f Trustees is empwered under the bnd trust indentures and the bnd prgram agreements t ntrat with utside parties t ndut the day-t-day peratins f the prgrams. The Authrity utilizes area finanial institutins t servie the mrtgage lans aquired. n additin, tw finanial institutins have been designated as trustees f the separate bnd prgrams and have the fiduiary respnsibility fr the ustdy and investment f funds. The Bard f Trustees may, in their disretin, transfer any r all f the assets f the Authrity whih are nt pledged t the payment f any bnds r ther evidene f indebtedness f the Authrity t the City f Mnre and the City f West Mnre in the rati f 57.2% and 42.8%, respetively. -11-

13 MNRE-WEST MNRE (UACHTA PARSH) PUBLC TRUST FNANCNG AUTHRTY NTES T THE NDVDUAL FUND STATEMENTS FR THE YEARS ENDED JULY 31,27 AND SUMMARY F SGNFCANT ACCUNTNG AND REPRTNG PLCES Basis f Aunting and Reprting - The Authrity fllws the arual basis f aunting and perates ertain funds established by the Bnd Trust ndentures. The funds, whih are maintained by the Trustees, prvide fr the aunting fr bnds issued, debt servie and bnd redemptin requirements, investments, and related revenues and expenses. The individual funds fr eah bnd prgram are aggregated in the ampanying individual fund finanial statements. Amrtizatin - Bnd issuane sts, inluding underwriters' disunt n bnds sld, are being amrtized ver the lives f the bnds, using the effetive interest methd. Deferred finaning sts related t bnds alled in ardane with the early redemptin prvisins, as desribed in the Bnd Trust ndentures, are harged t expense in the year that suh bnds are alled. Disunts are amrtized ver the lives f the related assets r liabilities as yield adjustments based upn the prinipal amunts utstanding. Statement f Cash Flws - Fr purpses f the statement f ash flws, the Authrity nsiders all highly liquid investments with a maturity f three mnths r less when purhased t be ash equivalents. Use f Estimates - The preparatin f finanial statements in nfrmity with U.S. generally aepted aunting priniples requires management t make estimates and assumptins that affet the reprted amunts f assets and liabilities and dislsure f ntingent assets and liabilities at the date f the finanial statements and the reprted amunts f revenues and expenses during the reprting perid. Atual results uld differ frm thse estimates. nvestments - The Authrity reprts all investments at fair value with gains and lsses inluded in the statements f revenues, expenses and hanges in fnd balanes. Fair value is defined as the amunt at whih a finanial instrument uld be exhanged in a urrent transatin between willing parties and has generally been based upn quted values. This methd f aunting auses flutuatins in reprted investment values based n flutuatins in the investment market. Flutuatins in the fair value f investments are rerded as inme r expense in the statements f revenues, expenses and hanges in fund balanes (defiit), and the amunt is dislsed in the statements f ash flws as unrealized (gain) lss n seurities. -12-

14 MNRE-WEST MNRE (UACHTA PARSH) PUBLC TRUST FNANCNG AUTHRTY NTES T THE NDVDUAL FUND STATEMENTS FR THE YEARS ENDED JULY 31,27 AND SUMMARY F SGNFCANT ACCUNTNG AND REPRTNG PLCES (CNTNUED) Fllwing is a summary f the unrealized gains (lsses) as refleted in the ampanying finanial statements: Unrealized Gain (Lss) Balane Change During Balane August 1, The Year Ended July 31, 26 July 31, Prgram $ 1,518 $ (318) $ 1,2 1990C Prgram 1, ,952 Unrestrited CASH AND NVESTMENTS The Authrity's prgrams and Unrestrited Fund maintain depsits at the trustee banks. The balanes f these depsits at July 31, 27 and 26 were entirely insured. The Authrity als has unrestrited funds, lassified as "Cash and Cash Equivalents'* n the balane sheet, whih represent interests in uninsured mney market mutual funds. n additin t the depsits desribed abve, the Authrity als has investments in U.S. Gvernment and U.S. Gvernment Ageny seurities. nvestments are stated at fair value with gains and lsses inluded in the statements f revenues, expenses, and hanges in fund balanes. A shedule f U.S. Gvernment and U.S. Gvernment Ageny seurities held is as fllws: Unrestrited C Fund Amrtized st at July 31,27 $ 9,866 $ 6,591 $ 189 Unrealized Gain 1,2 K952 1 Fair Value at July 31,27 $ S 8,543 $ 190 The U.S. Gvernment seurities f the 1979 Prgram and the 1990C Prgram are restrited fr debt servie n the respetive Prgram's bnds and payment f varius prgram expenses. All seurities are held by the trustee banks in the Authrity's name. -13-

15 MNRE-WEST MNRE (UACHTA PARSH) PUBLC TRUST FNANCNG AUTHRTY NTES T THE NDVDUAL FUND STATEMENTS FR THE YEARS ENDED JULY 31, 27 AND MRTGAGE LANS RECEVABLE The 1988 Prgram's mrtgage lans reeivable were riginally aquired under the 1979 Prgram arid were transferred t the 1988 Prgram at a disunt upn the 1979 Prgram's defeasement. These ntes have stated interest rates f 7.875% yielding apprximately 11,3%, have sheduled maturities in 29, and are seured by first mrtgages n the related real prperty. The remaining unamrtized disunt n mrtgage lans was apprximately $227,248 and $379,197 at July 31, 27 and 26, respetively. The 1990C Prgram's mrtgage lans reeivable were riginally aquired under the 1980 Prgram and were transferred, first t the 1990B Prgram upn the 1980 Prgram's redemptin. During fisal year 20, the mrtgage lans reeivable were transferred t the 1990C Prgram upn the 1990B Prgram's redemptin. These ntes have stated interest rates f 9.625%, have sheduled maturities in 23, and are seured by first mrtgages n the related real prperty. The mrtgage lans reeivable are servied by the partiipating mrtgage lenders wh reeive mnthly mpensatin based upn the unpaid prinipal balanes f the mrtgage lans. The mrtgage lans were made thrugh nventinal, FHA, and VA prgrams spnsred by the varius partiipating mrtgage lenders. n additin t the ustmary insurane required f the mrtgagrs, the Authrity has btained insurane n the mrtgage lans under a supplemental hazard pliy, servie perfrmane bnds, and a master trust pliy fr mrtgagr defaults. 5. BNDS PAYABLE Eah prgram's bnd debt servie requirements are seured by the assets and revenues f the respetive prgram in ardane with the respetive bnd trust indenture. utstanding bnds payable are due n a term and serial basis and bear interest at rates as fllws at July 31,27 and 26: Prgram: Single Family Mrtgage Revenue Bnds, Due serially and term thrugh 2011, 6.5% t 7.2% stated rate $ 12,385 $ 14, Prgram: Single Family Mrtgage Revenue Bnds, Due June 30,2011,7.30% stated rate, $ 416 $ 733 Less related disunt ( 295) ( 462) $ 121 $

16 MNRE-WEST MNRE (UACHTA PARSH) PUBLC TRUST FNANCNG AUTHRTY NTES T THE NDVDUAL FUND STATEMENTS FR THE YEARS ENDED JULY 31,27 AND BNDS PAYABLE (ntinued) 1990C Prgram: Tax-Exempt Capital Appreiatin Refunding Bnds, due August 20,2014, 7.86% effetive Yield $ 12,0 $ 12,0 Less related disunt (5,111) (5,630) $ 6,889 $ 6,370 The 1988 Prgram bnds are strutured suh that the mnthly prinipal remittanes reeived frm mrtgage lans are passed thrugh t bndhlders as mnthly prinipal redemptins f bnds payable. The 1990C Prgram bnds are mpund interest bnds; interest is paid t bndhlders at maturity. The bnds are subjet t early redemptin prvisins as desribed in the respetive Bnd Trust ndentures at redemptin pries equal t the prinipal amunts f the bnds redeemed plus arued interest t the appliable all dates. n nnetin with early bnd redemptins, deferred finaning sts related t the bnds alled are harged t expense. Sheduled 1979 Prgram bnd prinipal maturities fr eah f the next five fisal years are as fllws (in thusands): BARD F TRUSTEES EXPENSES The members f the Authrity's Bard f Trustees reeive n fees fr their servies but are reimbursed fr their atual travel expenses inurred in the perfrmane f their duties as Trustees f the Authrity. 7. DSTRBUTN T CTES During fisal years 27 and 26, the Authrity made n distributins frm the Unrestrited Fund t the ities f Mnre and West Mnre, Luisiana. *********** -15-

17 LTTLE & ASSCATES LLC CERTFED PUBLC ACCUNTANTS Wm. T LTTLE, CPA CHARLES R. MARCHBANKS. JR., CPA REPRT N NTERNAL CNTRL VER FNANCAL REPRTNG AND N CMPLANCE AND THER MATTERS BASED N AN AUDT F FNANCAL STATEMENTS PERFRMED N ACCRDANCE WTH GVERNMENT AUDTNG STANDARDS T the Bard f Trustees f the Mnre-West Mnre (uahita Parish) Publi Trust Finaning Authrity Mnre, Luisiana We have audited the finanial statements f Mnre - West Mnre (uahita Parish) Publi Trust Finaning Authrity (the "Authrity'*), as f and fr the years ended July 31, 27 and 26, and have issued ur reprt theren dated January 24,28. We nduted ur audit in ardane with auditing standards generally aepted in the United States f Ameria and the standards appliable t finanial audits ntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. nternal Cntrl ver Finanial Reprting n planning and perfrming ur audit, we nsidered the Authrity's internal ntrl ver finanial reprting as a basis fr designing ur auditing predures fr the purpse f expressing ur pinin n the finanial statements, but nt fr the purpse f expressing an pinin n the effetiveness f the Authrity's internal ntrl ver finanial reprting. Ardingly, we d nt express an pinin n the effetiveness f the Authrity's internal ntrl ver finanial reprting. A ntrl defiieny exists when the design r peratin f a ntrl des nt allw management r emplyees, in the nrmal urse f perfrming their assigned ftintins, t prevent r detet misstatements n a timely basis. A signifiant defiieny is a ntrl defiieny, r mbinatin f ntrl defiienies, that adversely affets the entity's ability t initiate, authrize, rerd, press, r reprt finanial data reliably in ardane with generally aepted aunting priniples suh that there is mre than a remte likelihd that a misstatement f the entity's finanial statements that is mre than innsequential will nt be prevented r deteted by the entity's internal ntrl. 16 PHNE (318) HC (318) MALNG ADDRESS: P.. BX NRTH 31 "STREET MNRE, LA MNRE. LA 71201

18 A material weakness is a signifiant defiieny, r mbinatin f signifiant defiienies, that results in mre than a remte likelihd that a material misstatement f the finanial statements will nt be prevented r deteted by the entity's internal ntrl. ur nsideratin f internal ntrl ver finanial reprting was fr the limited purpse desribed in the first paragraph f this setin and wuld nt neessarily identify all defiienies in internal ntrl that might be signifiant defiienies r material weaknesses. We did nt identiiy any defiienies in internal ntrl ver finanial reprting that we nsider t be material weaknesses, as defined abve. Cmpliane and ther Matters As part f btaining reasnable assurane abut whether the Authrity's finanial statements are free f material misstatement, we perfrmed tests f its mpliane with ertain prvisins f laws, regulatins, ntrats, and grant agreements, nnmpliane with whih uld have a diret and material effet n the determinatin f finanial statement amunts. Hwever, prviding an pinin n mpliane with thse prvisins was nt an bjetive f ur audit, and ardingly, we d nt express suh an pinin. The results f ur tests dislsed n instanes f nnmpliane r ther matters that are required t be reprted under Gvernment Auditing Standards This reprt is intended slely fr the infrmatin and use f management and the Bard f Trustees f the Authrity and the State f Luisiana Legislative Auditr and is nt intended t be and shuld nt be used by anyne ther than these speified parties. Under Revised Statute 24:513, this reprt is distributed by the Legislative Auditr as a publi dument Mnre, Luisiana January 24,28 17