,~?~'I'IZ TOWNOFCULEN,LOUISLANA ANUALFINANCIALREPORT JUNE30,202. ReleaseDate_~~L~_

,~?~'I'IZ TOWNOFCULEN,LOUISLANA ANUALFINANCIALREPORT JUNE30,202 ReleaseDate_~~L~_

TOWNOFCULEN,LOUISIANA TABLEOFCONTENTS INDEPENDENTAUDITORS'REPORT REPORTONCOMPLIANCEANDONINTERNALCONTROLOVER FINANCIALREPORTINGBASEDONANAUDITOFINANCIAL STATEMENTSPERFORMEDINACORDANCEWITH GOVERNMENTAUDITINGSTANDARDS ManagementLeter GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTATEMENTS-OVERVIEW) Combinedbalanceshet-alfundtypes andacountgroups Combinedstatementofrevenues,expenditures, andchangesinfundbalances-algovernmental fundtypes Combinedstatementofrevenue,expenditures, andchangesinfundbalances-budget(cashbasis) andactual-generalandspecialrevenuefundtypes Combinedbalanceshet-proprietaryfundtypes Combinedstatementofrevenue,expenditures,and changesinretainedearnings-alproprietary fundtypes Combinedstatementsofcashflows-enterprisefunds Notestofinancialstatements Page 1 I0 1l 13 15 16 17

TOWNOFCULEN,LOUISIANA TABLEOFCONTENTS FINANCIALSTATEMENTSOFINDIVIDUALFUNDSANDACOUNTGROUPS GeneralFund: Comparativebalanceshet Statementofrevenues,expenditures,and andchangesinfundbalance-budget(cash Statementofexpenditurescomparedto basis)andactual budget(cashbasis) SpecialRevenueFunds: Combiningbalanceshet Combiningstatementofrevenues,expenditures, Twopercentsalestaxfund: andchangesinfundbalances Statementofrevenues,expenditures,and changesinfundbalance-budget(cashbasis) One-halfpercentsalestaxfund: andactual Statementofrevenues,expenditures,and changesinfundbalance-budget(cashbasis) andactual GeneralFixedAsetsAcountGroup: Comparativestatementofgeneralfixedasets Statementofchangesingeneralfixedasets GeneralLongTermDebtAcountGroup StatementofGeneralLong-TermDebt OtherSuplementaryInformation: ScheduleofCompensationPaidBoardMembers SumaryScheduleofPriorAuditFindings CorectiveActionPlan Page 40 42 45 46 48 5051 53 5657

JAMIESON,WISE&MARTIN APROFESIONALACOUNTINGCORPORATION M~CFU~LW.~S,C.P~ 601MAINSTRETP.O.BOX897 CARLOSE.M~R~3N,C.p.A. DA~AOW.~N~J.~'Y,C.p.A. MINDEN,LOUISIANA71058-0897 KRISlnNIEH.COLF~C.pJ~ FAX(318)37-317 (318)37-3171 JE~RC.SM~,C.P~ E-MAILJWMOCWIDE.NET ~,PEARCEJAM4ESON*C~A,(191} CERTIFtEOPUBLICACOUNTANTS MEMBERS CERTIFIEOPUBLICACOUNTANTS AMERICANtNSTITUTEOF SOCIETyOFLOUISIANA INDEPENDENTAUDITORS'REPORT TheHonorableFloydeanWhite,Mayor, TownofCulen,Louisiana andthemembersoftheboardofaldermen WehaveauditedtheacompanyingeneralpurposefinancialstatementsoftheTownofCulen, Louisiana,asofandfortheyearendedJune30,202,aslistedinthetableofcontents.These generalpurposefinancialstatementsaretheresponsibilityofthetownofculan'smanagement. Ouresponsibilityistoexpresanopiniononthesegeneralpurposefinancialstatementsbasedon ouraudit. WeconductedourauditinacordancewithauditingstandardsgeneralyaceptedintheUnited StatesofAmericandthestandardsaplicabletofinancialauditscontainedinGovernmentAuditing Standards,isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatwe pianandperformtheauditobtainreasonableasuranceaboutwhetherthegeneralpurpose financialstatementsarefreofmaterialmistatement.anauditincludesexamining,onatestbasis, evidencesuportingtheamountsandisclosuresinthegeneralpurposefinancialstatements.an auditalsoincludesasesingtheacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralgeneralpurposefinancialstatementpresentation.we believethatourauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inal materialrespects,thefinancialpositionofthetownofculen,louisiana,asofjune30,202,and theresultsofitsoperationsanditscashflowsofitsproprietaryfundtypesfortheyearthenendedin conformitywithacountingprinciplesgeneralyaceptedintheunitedstatesofamerica. InacordancewithGovernmentAuditingStandards,wehavealsoisuedareportdatedDecember 17,202onourconsiderationoftheTownofCulen'sinternalcontroloverfinancialreportingand ourtestsofcompliancewithcertainprovisionsoflaws,regulations,contractsandgrants.thatreport isanintegralpartofanauditperformedinacordancewithgovernmentauditingstandardsand shouldbereadinconjunctionwiththisreportinconsideringtheresultsofouraudit.

Ourauditwasperformedforthepurposeoforminganopiniononthegeneralpurposefinancial statementstakenasawhole.thecombiningandindividualfundandacountgroupfinancial statementsandscheduleslistedinthetableofcontentsarepresentedforpurposesofaditional analysisandarenotarequiredpartofthegeneralpurposefinancialstatementsofthetownof Culen,Louisiana.Suchinformationhasbensubjectedtotheauditingproceduresapliedinthe auditofthegeneralpurposefinancialstatementsand,inouropinion,isfairlypresentedinal materialrespectsinrelationtothegeneralpurposefinancialstatementstakenasawhole. Minden,Louisiana December17,202

JAMIESON,WISE&MARTIN APROFESIONALACOUNTINGCORPORATION MICHAELW.WISE,C.PA. 601MAINSTRETP.O.BOX897 CARLO~EMARTIṆCpJ~ DA~/10W.T1N~LEy,C.pA. MINDEN,LOUISIANA71058-0897 KRI~'31MEH.C(.E.C.pJ~ FAX(318)37-317 (318)37-3171 JENIFERC,SMI~HLC.P.A E-MAILJWM@CWlDE,NET WM.PEARCEJAMIESON,C,RA.(191 CERTIFIEDPUBLICACOUNTANTS AMERICANINSTITUTEOF SOCIETYOFLOUISIANA MEMBERS CERTIFtEDPUBLtCACOUNTANTS REPORTONCOMPLIANCEANDONINTERNALCONTROLOVERFINANCIAL REPORTINGBASEDONANAUDITOFINANCIALSTATEMENTSPERFORMED INACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TheHonorableFloydeanWhite,Mayor, TownofCulen,Louisiana andthemembersoftheboardofaldermen WehaveauditedthegeneralpurposefinancialstatementsoftheTownofCulen,Louisiana,asof andfortheyearendedjune30,202,andhaveisuedoureporthereondateddecember17,202. WeconductedourauditinacordancewithauditingstandardsgeneralyaceptedintheUnited StatesofAmericandthestandardsaplicabletofinancialauditscontainedinGovernmentAuditing Standards,isuedbytheComptrolerGeneraloftheUnitedStates. Cnmplince purposefinancialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliance AspartofobtainingreasonableasuranceaboutwhetherTownofCulen,Louisiana'sgeneral withcertainprovisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcould haveadirectandmaterialefectonthedeterminationofinancialstatementamounts.however, providinganopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand, acordingly,wedonotexpresuchanopinion.theresultsofourtestsdisclosednoinstancesof noncompliancethatarerequiredtobereportedundergovernmentauditingstandards.however,we notedcertainimaterialinstancesofnoncompliancethatwehavereportedtomanagementoftown ofculen,louisiana,inaseparateleterdateddecember17,202. Inplaningandperformingouraudit,weconsideredTownofCulen,Louisiana'sinternalcontrol overfinancialreportinginordertodetermineourauditingproceduresforthepurposeofexpresing ouropiniononthegeneralpurposefinancialstatementsandnotoprovideasuranceontheinternal controloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancialreporting

wouldnotnecesarilydisclosealmatersintheinternalcontroloverfinancialreportingthatmight bematerialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperationofone ormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylowleveltheriskthat mistatementsinamountsthatwouldbematerialinrelationtothegeneralpurposefinancial statementsbeingatiditedmayocurandnotbedetectedwithinatimelyperiodbyemployesinthe normalcourseofperformingtheirasignedfunctions.wenotednomatersinvolvingtheinternal controloverfinancialreportinganditsoperationthatweconsidertobematerialweakneses. Thisreportisintendedfortheinformationofmanagement,BoardofAlderman,theLegislative AuditoroftheStateofLouisianandisnotintendedtobeandshouldnotbeusedbyanyoneother thanthesespecifiedparties.underlouisianarevisedstatute24:513,thisreportisdistributedbythe LegislativeAuditorasapublicdocument. Mmden,Louisiana December17.202

JAMIESON,WISE&MARTIN APROFESIONALACOUNTINGCORPORATION 6(1MAINSTRETP.O.BOXS~7 MICH&ELW.WISE,C.P~. MINDEN,LOUISIANA71058-0897 C~LOSEM~N,C.PA DA~IDW.1NSLEY,C.pJ~ ~IS~NEH.COLE,C.PJ~ FAX(318)37-317 {318)37-3171 JENIFERC.SMITH,C.pJ~. EoMAILJWM@OWIDE,NET WM.PEARCEJAMIESON,C.EA.191 MEMgER$ CERTIFIEDPUBLICACOUNTANTS AMERICANINSTITUTEOF SOCIETyOFLOUISIANA MANAGEMENTLETER TheHonorableFloydeanWhite,Mayor, TownofCulen,Louisiana andthemembersoftheboardofaldermen WehaveauditedthefinancialstatementsoftheTownofCulen,Louisiana,asofandfortheyear endedjune30,202,andhaveisuedoureporthereondateddecember17,202. Inconectionwithouraudit,wemadecertainobservationsrelativetotherecordsmaintained,the acountingproceduresinefect,andtheoveraladministrationofthefinancialafairsofthetown, Asasuplementothereports,wesubmitforyourconsiderationpertainingtothefolowing observationswhichdidnotmethecriteriaofbeingmaterialtothegeneralpurposefinancial statements. Complianceitemsconsiderednon-materialtogeneralpurposefinancialstatements. 202-1 Article7,Section14oftheLouisianaConstitutionof1974prohibitsthefunds,credit,propertyor thingsofvaluefrombeingloaned,pledged,ordonatedtorforanyperson,asociation,or corporation.thetownofculenenteredintothefolowingtransactionsduringtheyearendedjune 30.202: TheTownofCulenpaidtheBoys&GirlsClub$4,0.Awritencoperativendeavor agrementwaspreparedbythetowntosuporthistransaction.however,acordingto OpinionNumber02-0162isuedbytheDepartmentofJustice,amunicipalitymaynot simplydonatefundstoanagencysuchastheboysandgirlsclubofamerica.itcan, however,expendpublicfundsforaprogramofsocialwelfarefortheaidandsuportofthe nedyprovidedthatherexistobjectivecriteriatoproperlyidentifythosewhoarenedy.

TheTownofCulenprovidedservicesandfundstotheHopeCenter.Althoughboththe curentandformermayorsofculenaserthatacoperativendeavorexistsbetwenthe TownandtheHopeCenter,nowritencoperativendeavorwasprovidedasevidenceto suportheirasertion. ~Duringourtestworkofutilitybilings,wenotedtheTownofCulenhadnotadheredtoits utilitycutofpolicyofcutingofpastdueacounts. PerOpinion02-0162,isuedbytheDepartmentofJustice,foracoperativendeavortobelegaly permisible,itmustbemadepursuantoalegalobligation;mustbeforapublicpurpose;and,itmust resultinapublicbenefitwhichisproportionatetoitscost.werecomendthathetowndetermine ifithasalegalobligationtoexpendpublicfundsandevidencethisdeterminationbyavalidstatute, ordinance,charter,contractoratorneygeneralopinion.inadition,werecomendthetown adheretothecutofpolicyandconsidertheuseofacolectionagencytopursuepastdueacountṣ PriorauditfindingshavebenadresedbytheTownmanagementunlesincludedintheabove coments.shouldyouhaveanyquestionsconcerningthecontentsofthisleterorifwecanbeof anyaditionalservice,pleasecontactusatyourconvenience. Verytrulyours, Jamieson,Wise&Martin December17.202

GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTATEMENTS-OVERVIEW)

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TOWNOFCULEN,LOUISIANA COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES ALGOVERNMENTALFUNDTYPES YearEndedJune30,202 Revenues: Taxes Licensesandpermits Intergovernmental Chargesforservices Finesandforfeits Interest Miscelaneous Totalrevenues Expenditures: Chxrent- Generalgovernment Publicsafety-Police Highwaysandstrets Sanitation Cultureandrecreation Debtservice Totalexpenditures General $10,715 54,95 17,420 50,69 17,316 3,942 14,156 269,243 158,48 173,828 16,731 39,846 21,374 410,27 Exces(deficiency)ofrevenuesover expenditures (140,984) Otherfinancingsources(uses): Saleofcapitalasets Operatingtransfersin Operatingtransfersout Totalotherfinancingsources(uses) Exces(deficiency)ofrevenuesandother sourcesoverexpendituresandotheruses Fundbalancesatbeginingofyear Fundbalancesatendofyear 20 18,641 18,841 (2,143) 172,56 $150,423 Special Revenue 108,520 4,635 13,15 1,39 7.10 8,49 104.656 (18,641) (18,641) (13,985) 30,279 286,294 Theacompanyingnotesareanintegralpartofthisfinancialstatement. Totals (MemorandumOnly 202 201 19,235 54,95 17,420 50,69 17,316 8,57 14~156 382.398 159,847 173,828 16,731 39,846 7,10 21.374 418.726 126,452 58,105 26,685 50,636 19,403 19,362 8,765 509~40_8 268,162 168,630 16,031 37,545 2,29 29,605 52,272 (36,328)(12,864) 20 18,641 (18,641) 20 (36,128) 472,845 9,781 (9,781) (12,864) 485.709

COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFLrNDBALANCE BUDGET(CASHBASIS)ANDACTUAL-GENERALANDSPECIALREVENUEFUNDTYPES TOWNOFCULEN,LOUISIANA YEARENDEDJUNE30,202 GeneralFund Revenues: Taxes Budget onbudgetary Actual Variance- Licensesandperm~ IntergovemraentsI $10,80 Basis10,709 (Unfavorable) Favorable Chargesforservices 48,135 Finesandforfeits 136,950 Interest 48,50 Miscelaneous I5,10 [6,563 54,890 (91) 4,187 49,901 12,105 17,763,942 29,6I31,40I 6,75 15~85 2,6 (245) 2,980 Expenditures: Totalrevenues 275.7 318.856 43.079 Generalgovernment Publicsafety- Highwaysandstrets Polioe 185,269 181,310 186,294 Sanitation Cultureandrecreation Debtservice 42,I20 19,90 171,451 (1,025) 16,561 39,495 9,859 3,39 2,625 Totalexpenditures 451.520 2,921 435.175 21.374 16,345 1,547 Exces(deficiency)ofrevenues Otherfinancingsources(uses) overexpenditures (175,743) (16,319) 59A24 Saleofcapitalasets Operatingtransfersin Operatingtransfersout 140,0 20 17,984 20 (2,016) Exces(deficiency)ofrevenuesandother Totalotherfinancingsources(uses) 140,20 1I8,184_.(2,016) sourcesoverexpendltu~esmadotheruses Fundbalancesatbeginingofyear 37.408 Fundbalancesatendofyear $162,6 198,209 152,287 (45,92) Theacompanyingnotesareanintegralpartofthisfinancialstatement.

SpecialRevenueFuads Bud6et onbudgetary Actual Variance- Favorable 107,20 4,146 3,90 4,083 183 15_429 4,329 1,375 1,395 (20) 7.0 7,054 (54) 8,375 8,49 (74) 102.725 106.980 4,25 (140,0) (140,0) (17,984) (17,984) 2,016 197,272 (1,04) 2.016 26,271 216.43 27.47 30.175 56.46

ASETS Curentasets: CashCartificatesofdeposit Investments Acountsreceivable-customers Aecotmtsreceivable-other SupliesInventory-atcost(FIFO) Duefromotherfunds Totalcurentasets Restrictedasets: Cash-Customers'meterdeposits Investments Certificatesofdeposit- Bondsinkingfland Bondreservefund Bondcontingencyfired Totalrestrictedasets Plantandequipment-atcost Lesacanmnlatedepreciation Otherasets: Unamortizedbondisuance expense(net) Totalotherasets Totalasets TOWNOFCULEN,LOUISIANA ENTERPRISEFUNDS COMBINEDBALANCESHET June30.202 Water Fund 10,060 1,313 231,434 14,19326 5,36142 262,534 3,915 20.60 24,515 1,134,024 (597,87) 536.137 S~rFund 2,59 737 834,702 25,190 4,902 868,090 2,581 16,431 17.152 36.164 2,592,214 (1,612,278) 979.9366,2726,272 Totals (MemorandumOnly 202 201 12,619 2,050 1,06,136 39,38326 5,36 5.04 1.130.624 3,915 20.60 2,58I 16,431 17.152 60.679 3,726,238 (2,210,I65) 1,516,073 6,272 6,272 23,394 12,136 1,058,905 35,467353 2,80950 1.134.05 3,78 20~81 2,581 14,871 15,54 56,865 3,719,581 (2,07,89) 1.641.692 6.481 6,481 Theacompanyingnotesareanintegralpartofthesefinancialstatements.

LiabilitiesandFundEquity Curentliabilities: Payablefromcurentasets- Acountspayable Curentportionbondspayable Duetotherfimds Payablefromrestrictedasets- Customers'smeterdeposits Water Fund $4,405 8,361 21,513 Totalcurentliabilities 34,279 Long-termliabilities: Bondspayable Totalong-texanliabilities Totaliabilities 34,279 Fundequity: Contributedcapital- Municipality Federalrevenuesharing Inaidofcanstmc'tiat Federalgrantsandstategrants Retainedearnings Totalfundequity Totaliabilitiesandfundequity 127,398 60,202 84,308 521,173 (4,174) 78,907 $823,186 SewerFund 5,068 251,8562,79 259.703 259.703 165=369 1,464,94545 Totals (MemorandumONV 202 201 9,473 251,856 1,140 293,982 293.982 292,767 60,202 84,308 1,986,18 (3~729) 1,19 15,541 4,949 231240 54.849 271,846 271,846 326,695 292,767 60,202 84,308 2,026,234 48,837 1,630,7592,419,62,512,348

TOWNOFCULEN,LOUISIANA COMBINEDSTATEMENTOFREVSbKTF~,EXPENSES,ANDCHANGES1N RET.a2NEDEARNINGS-ALPKOPRIETARYFUNDTYPES YearEndedJune30.202 Operatingrevenues: Chargesforservices- Watersales Sewerservicecharges Reconectcharges Tie-incharges Delinquentchargesandpenalfies Miscelaneousrevenue Totaloperatingrevenues Operatingexpenses: Salaries Payroltaxes Instlrat/c4~ Repairsandmaintenance Suplies Utilities Amo~ization Depreciation Oficesuplies Acountingandlegai Scholsandtraining Testingandperaits BadDebt MisceUaneous Totsloperatingexpenses operating(los) Non-eperatingrevenues(expenses) Interestexpense Interestrevenue Totalnon-operatingrevenues(expenses) Net(los) Water Fund $79,469 1,804 65 146 81,484 43,36 3.414 Zo12 7,459 5,498 15,808 27,80 1,743 2,984286 Sewer Fund 147,693 75 6,80117 154,586 45,604 3,6176,132 31,6471,178 19,97209 104,3968402,963952,7603,810596 24fl2 202 201 79.469 147.693 1,8041406,801163 236,070 8,9707,031 13,14 39,1066.676 35.780209 132,2762.5835,9506812,7606,3672,540 34,073 74,459 153,019 2,165608,461380 238.95 91,217 7.010 13.75 30,581 12,620 49,032O9 131o8471,9585,8415294.79 51 3491890 (38,467)(69,536)(108,03)(10,895) (13,41)(13,41)(1,238) 6,82821~93428,76262~873 618288,49315,32151,635 Adepreciationonfixedasetsacquiredbygrants,antit[ements, (31,639)(61,043)(92,682)(59,260) andsharedrevenuesexternalyre.riotedforcapitalacquisitions andconstructionthatreducescontributedcapital 20,6719.4940.1640,16 Retainedearnings-begumgofyear Retainedearnings-endofyear 6,79842,03948.83767,981 Theacompanyingnotesareanintegral,partofthisfinancialstatemant. 15 45

TOWNOFCULEN,LOUISIANA ENTERPRISEFUNDS COMBINEDSTATEMENTOFCASHFLOWS YearEndedJune30,202 Cashflowsfromoperalingactivities: Cashreceivedfromcustomers Cashpaymentsforsupliesandservices Cashpaymentforsalaries Otheroperatingrevenues Netcashprovided(used)byoperatingactivities Cashflowsfromcapitalandrentedfinancingactivities: Purchaseofasets Principalpaymentsonlong-tern1debt Interestpaymentsonlong-termdebt Netcashusedbycapitalandrelatedfinancingactivities CashflowsfromInvestingactivities: Depositswithinvestmentpols Interestearnedoncashandcashinvestments Withdrawalsfrominvestmentpols Netcashprovided(used)byinvestingactivities Net(decrease)incashandcashequivalents Cashandcashequivalentsatbe:~aingofyear Cashandcashequivalentsatendofyear Reconciliationofoperatingincometonetcash providedbyoperatingactivities: Operatinglos Adjustmentstoreconcileoperatingincome tonetcashprovidedbyoperatingactivities: Depreciationandamortization (increase)decreaseinacountsreceivable (Increase)decreaseinacountsreceivable-other (Increase)decreaseinduefromotherfunds (Increase)decreaseininventory Increase(decrease)inacountspayable Increase(decrease)induetotherfunds Increase(decrease)indeposits Netcashprovidedbyoperatingactivities Water Fund $76.45 (48.165) (43,36)146 (14.930) Sewer Fund 152,21 (74,642) (45,604) 17 31,982 (6.657) (6,657) (6,73o) 6,828 20.0 201098 (1,4893 16.7 $15.28 (35,531) (13,41) (48,972) (21,o2o) 21,934 914 (16,076) 5,537 39,461 MemorandumOni~ 202 201 28,6 (12.807) (8,970) 163 17.052 (6,657) (35,531) (13,41) (5,629) (27,750) 28,762 20.0 21.012 07,565) 72,314 54,749 235,974 (123.846) (91,217) 38O 21,291 (4,489) (39,507) (13,548) (57,54) (60,504) 62,872 19,898 2,26 (13,987) 861301 72,314, $(38,467)(69,536)(108,03)(10,895) 104,605(80)305 (1,o34) (1.478) 132,485 (3,915)327 (142) (2,56) (1,647) 2,240 (1,727) 132,056 (2,198) (353) (645) (1.567) 4,643250 Theacompanyingsoresareanintegralpartofthisfinancialstatement.

TOWNOFCLrLEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 1.Sumaryofsimaificantaceotmtin~13olicies TheTownofCulenwasincorporatedJune16,195,undertheprovisionsoftheLawrasonAct andislocatedinorthernwebsterparish.thetownoperatesunderamayor-boardof Aldermenformofgovernmentandprovidesthefolowingservicesasauthorizedbyitscharter: generaladministrativeservices,publicsafety(policeandfire),highwaysandstrets,sanitation, healthandsocialservices,culture-recreation,publicimprovements,andplaningandzoning. TheBoardofAldermenismadeupofivememberswhoarelectedbythecitizensofCulento servefour-yearterms.theyarecompensatedfortheirservices. TheacountingandreportingpoliciesoftheTownofCulenconformtogeneralyacepted acountingprinciplesasaplicabletogovernments.suchacountingandreportingprocedures theindustryauditguide,auditsofstateandlocalgovernmentalunits alsoconformtotherequirementsofthelouisianamunicipalauditandacountin~guideandto Thefolowingisasumaryofcertainsignificantacountingpolicies A.BasisofpresentationTheacompanyingf'mancialstatementsoftheTownofCulen conformwithgeneralyaceptedacountingprinciples(gap)asapliedtogovernmental units,thegovernmentalacountingstandardsboard(gasb)istheaceptedstandardsetingbodyforestablishingovernmentalacountingandfinancialreportingprinciples. ReportingentityGASBStatementNo.14establishedcriteriafordeterminingthe governmentalreportingentity.forfinancialreportingpurposes,inconformancewithgasb 14,theTownofCulenincludesalfunds,acountgroups,etcetera,thatarewithinthe financialacountabilityofthetown.certainunitsoflocalgovernmentoverwhichthe Townexercisesnofinancialaecoantabilityarexcludedfromtheacompanyingfinancial statements.theseunitsofgovernmentareconsideredseparatereportingentitiesandisue financialstatementseparatefromthoseofthetownofculen. C.FundacountingTheTownofCulenusesfundsandacountgroupstoreportonits financialpositionandtheresultsofitsoperations.fundacountingisdesignedto demonstratelegalcomplianceandtoaidfinancialmanagementbysegregatingtransactions relatingtocertaingovernmentfunctionsoractivities.

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 Afundisaseparateacountingent/tywithasetofself-balancingacounts.Ontheother hand,anacountgroupisafinancialreportingdevicedesignedtoprovideacountabilityfor certainasetsandliabilitiesthatarenotrecordedinthefundsbecausetheydonotdirectly afectnetexpendableresources. FundsoftheTownofCulenareclasifiedintotwocategories:governmentaland proprietary.eachcategory,inturn,isdividedinseparatefundtypes.thefund clasificationsandadescriptionofeachexistingfundtypefolow: GovernmentalFunds- GovernmentalfundsacountforalormostoftheTownofCulefsgeneralactivities, includingthecolectionandisbursementofspecificorlegalyrestrictedmonies,the acquisitionorconstructionofgeneralfixedasets,andtheservicingofgeneralong-term obligations.governmentalfundsinclude: GeneralFund-thegeneraloperatingfundoftheTown.Itisusedtoacountforalfinancial resourcesexcepthoserequiredtobeacountedforinanotherfund. SpecialRevenueFunds-acountfortheprocedsofspecificrevenuesources(otherthan specialasesments,expendabletrusts,ormajorcapitalprojects)thatarelegalyrestrictedto expendituresforspecificpurposes. CapitalProjectsFunds-acountforfinancialresourcesreceivedandusedforthe acquisition,construction,orimprovementofcapitalfacilitiesnotreportedonother governmentalfunds. ProprietaryFunds- Proprietaryfundsacountforactivitiesimilartothosefoundintheprivatesector,wherethe determinationofnetincomeisnecesaryorusefultosoundfinancialadministration.proprietaryfundsdiferfromgovernmentalfundsinthatheirfocusisonincomemeasurement, which,togetherwiththemaintenanceofequity,isanimportantfinancialindicator.

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30.202 Proprietaryflmdsinclude EnterpriseFunds-acountforoperations(a)thatarefinancedandoperatedinamaner similartoprivatebusinesenterprises-wheretheintentofthegoverningbodyisthathe costs(expenses,includingdepreciation)ofprovidingodsorservicestothegeneralpublic onacontinuingbasisbefinancedorecoveredprimarilythroughuserfes;or(b)wherethe governingbodyhasdecidedthatheperiodicdeterminationofrevenuesearned,expenses incured,and/ornetincomeisapropriateforcapitalmaintenance,publicpolicy, managementcontrol,acountability,orotherpurposes. D.BasisofacountingTheacountingandfinancialreportingtreatmentapliedtoafundis determinedbyitsmeasurementfocus.algovernmentalfundtypesareacountedforusing acurentfinancialresourcesmeasurementfocus.withthismeasurementfocus,onlycurent asetsandcurentliabilitiesaregeneralyincludedonthebalanceshet.operating statementsofthesefundspresentincreasesandecreasesinetcurentasets.themodified acrualbasisofacountingisusedbyalgovernmentalfunds.thegovernmentalfundsuse thefolowingpracticesinrecordingrevenuesandexpenditures: Revenues-generalyrecognizedwhentheybecomemeasurableandavailableasnetcurem asets.revenuescolectedwithin60daysafteryear-endareconsideredavailabletopay liabilitiesofthecurentperiod. Expenditures-generalyrecognizedunderthemodifiedacrualbasisofacountingwhenthe relatedfundliabilityisincured,excepthatacumulatedunpaidvacationandsickpayare notacruedandprincipalandinterestongeneralong-termdebtisrecognizedwhendue. Purchasesofvariousoperatingsupliesareregardedasexpendituresathetimepurchased. Otherfinancingsources(uses)-transfersbetwenfundsthatarenotexpectedtoberepaid areacountedforasotherfinancingsources(uses).theseotherfinancingsources(uses)are recognizedathetimetheunderlyingeventsocur. Alproprietaryfundtypesareacountedforonaflowofeconomicresourcesmeasurement focusandadeterminationofnetincomeandcapitalmaintenance.withthismeasurement focus,alasetsandaliabilitiesasociatedwiththeoperationofthesefundsareincludedon thebalanceshet.theproprietaryfundsusetheacrualbasisofacounting.revenuesare

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 recognizedwhenearnedandexpensesarerecognizedathetimetheliabilitiesareincured. E.Budgetsandbudgetaryacountin~TheTownfolowsthefolowingbudgetpractices a)thetownclerkpreparesaproposedbudgetandsubmitsametothemayorandboard ofaldermenolaterthanfiftendayspriortothebeginingofeachfiscalyear. b)thepublicisnotifiedthatheproposedbudgetisavailableforpublicinspection.athe sametime,apublichearingiscaled. c)apublichearingisheldontheproposedbudgetatleastendaysafterpublicationofthe calforthehearing. d)aftertheholdingofthepublichearingandcompletionofalactionecesarytofinalize andimplementhebudget,thebudgetisadoptedthroughpasageofanordinanceprior tothecomencementofthefiscalyearforwhichthebudgetisbeingadopted. e)budgetaryamendmentsinvolvingthetransferofundsfromonedepartment,prograrnor functiontoanotherorinvolvingincreasesordecreasesinexpendituresresultingfrom revenuesexcedingorfailingtometamountsestimatedrequiretheaprovalofthe BoardofAldermen. 0Albudgetaryapropriationslapseathendofeachfiscalyear BudgetsfortheGeneralandSpecialRevenueFundswereadoptedonacashbasisforthe yearendedjune30,202.budgetedamounts,asoriginalyadopted,areamendedfrom timetotimebytheboardofaldermen.suchamendmentswerenotmaterialinrelation totheoriginalapropriations.budgetscomparisonsarenotpresentedforthefolowing grantduetotherestrictionofthesefundsforthepurposesauthorizedbytheunderlying grant: SpecialRevenueFunds- RuralDevelopmentRevolvingLoanProgramGrant 20

TOWNOFCULER.LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 h)therevenuesandexpenditurespresentedonpagel0usingthegapbasisare reconciledwiththeactualonbudgetarybasispresentedonpages1and12asfolows General Special Totalrevenues(GAPBasis) Fund Revenue $269,243 Funds 13,15 Adjustments: Revenueacruals RevolvingLoanProgram 49,613 (52_) 2,826 Totalrevenues(BudgetaryBasis) $318,856 Totalexpenditures(GAPBasis) $410,27 8,49 Adjustments: Expenditureacruals 24,948 (50) F.Encumbrances Totalexpenditures(BudgetaryBasis) $435l~kTfi75 84~9_49 itsgovernmentalfunds. TheTownofCulendoesnotemploytheuseofencumbranceacountingin O.CashandcasheauivalentsCashincludesamountsindemandepositsandcertificatesof deposits.understatelaw,thetownmaydepositfundsindemandeposits,interestbearing demandeposits,moneymarketacountsortimedepositswithstatebanksorganizedunder LouisianalawandnationalbankshavingtheirprincipaloficesinLouisiana. H,Investments-InvestmentsarelimitedbyLouisianaRevisedStatute(R.S.3:295)andthe municipality'sinvestmentpolicy.understatelaw,thetownofculenmayinvestinunited Statesbonds,treasurynotes,orcertificates.Iftheoriginalmaturitiesofinvestmentsexced 90days,theyareclasifiedasinvestment;however,iftheoriginalmaturitiesare90daysor les,theyareclasifiedascashequivalents. 21

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 InvestmentsheldatheTownofCuUenconsistof$1,35,73intheLouisianaAset ManagementPol(LAMP),alocalgovernmentinvestmentpol.InacordancewithGASB codificationsectioni50.165,theinvestmentinlampathetownofculenisnot categorizedinthethreriskcategoriesprovidedbygasbcodificationsectioni50.164 becausetheinvestmentisinthepolofundsandthereforenotevidencedbysecuritiesthat existinphysicalorbokentryform. LAMPisadministeredbyLAMP,Inc.,anon-profitcorporationorganizedunderthelawsof thestateoflouisiana.onlylocalgovernmententitieshavingcontractedtoparticipatein LAMPhaveaninvestmentinterestinitspolofasets.TheprimaryobjectiveofLAMPis toprovideasafenvironmentfortheplacementofpublicftmdsinshort-term,highquality investments.thelampportfolioincludesonlysecuritiesandotherobligationsinwhich localgovernmentsinlouisianareauthorizedtoinvestinacordancewithlsa-r.s. backedbytheu.s.treasury,theu.s.government,oroneofitsagencies,enterprises,or 3:295.Acordingly,LAMPinvestmentsarerestrictedtosecuritiesisued,guaranted,or instrumentalities,aswelasrepurchaseagrementscolateralizedbythosesecurities. EfectiveAugust1,201,LAMP'sinvestmentguidelineswereamendedtopermithe investmentingovernment-onlymoneymarketfunds.inits201regularsesion,the LouisianaLegislature(SenateBilNo.512,Act701)enactedLSA-R.S.3:295(A)(1)(h) whichalowsalmunicipalities,parishes,scholboards,andanyotherpoliticalsubdivisions ofthestatetoinvestin"investmentgrade(a-l/p-1)comercialpaperofthedomestic UnitedStatescorporations."EfectiveOctober1,201,LAMP'sInvestmentGuidelines wereamendedtoalowthelimitedinvestmentina-1ora-l+comercialpaper. ThedolarweightedaverageportfoliomaturityofLAMPasetsisrestrictedtonotmorethan 90days,andconsistsofnosecuritieswithamaturityinexcesof397days.LAMPis designedtobehighlyliquidtogiveitsparticipantsimediateacestotheiracount balances,theinvestmentsinlamparestatedatfairvaluebasedonquotedmarketrates. ThefairvalueisdeterminedonaweklybasisbyLAMPandthevalueofthepositioninthe externalinvestmentpolisthesameasthevalueofthepolshares. LAMP,Inc.isubjectotheregulatoryoversightofthestatetreasurerandtheboardof directors.lampisnotregisteredwiththesecasaninvestmentcompany.

TOWNOFCULEN,LOUISIANA NOTESTOFI-NANCIALSTATEMENTS June30,202 Short-terminterfundreceivablesandoavab/esDuringthecourseofoperationșnumerous transactionsocurbetwenfundsforgodsorservicesrendered.thesereceivablesand payablesareclasifiedasduefromfundsorduetofundsonthebalanceshet.short-term interfundloansareclasifiedasinterfundreceivablesandpayables. BadebtsAlreceivablesareconsideredfulycolectibleand,therefore,noalowancefor uncolectibleamountsisprovided.ifamountsbecomeuncolectible,theyarechargedto operationswhenthatdeterminationismade. K.InventoriesInventoriesofsupliesintheproprietaryfundsarevaluedatcost(first-in,firstout). L.FixedasetsFixedasetsofgovernmentalfundsarerecordedasexpendituresathetime theyarepurchasedorconstructed,andtherelatedasetsarecapitalized(reported)inthe GFAG.TheTownhaselectedtocapitalizepublicdomain("infrastructure")fixedasets consistingofcertainimprovementsotherthanbuildings,includingroads,bridges,sidewalks, andrainageimprovements.nodepreciationhasbenprovidedongeneralfixedasets. Fixedasetsusedintheproprietaryfundoperationsareincludedonthebalanceshetofthe fundsnetofacumulatedepreciation.depreciationofalexhaustiblefixedasetsusedby proprietaryfundoperationsischargedasanexpenseagainstoperations. Depreciationiscomputedusingthestraight-linemethodwiththefolowingusefulives WaterUtility- Wels Storagetanks Lines Equipment 5-10years 3years SewerageUtility- Pumpstations Lines Equipment 5-10years 3years Alfixedasetsarestatedathistoricalcost.Donatedfixedasetsarestatedatheirestimated

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 fairvalueonthedatedonated. M.Restrictedasets-Certainprocedsofenterprisefundrevenuebonds,aswelascertain resourcesetasidefortheirepayment,areclasifiedasrestrictedasetsonthebalanceshet becausetheiruseislimitedbyaplicablebondconvenants. Thereshalbesetasideintoa"BondReserveFund"anamountequalto5%ofthepayments intothesinkingfunduntilsuchtimeastherehasbenacumulatedthereinasumequalto thehighestcombinedprincipalandinterestrequirementsforanyearonbondspayablefrom thesinkingfund($30,973.20).moneysinthereservefundwilbeusedsolelyforthe purposeofpayingprincipalofandinterestonsuchbondsastowhichtherewouldotherwise beadefault. Thereshalbesetasideasumof$134permonthintoa"DepreciationandContingency Fund"forthepurposeofcaringfordepreciation,extensions,aditions,improvementsand replacementsnecesarytoperateproperlythesystem.moneyinthisfundmaybeusedfor thepurposeofpaymentofbondsforwhichthereisnotsuficientmoneyinthesinkingfund orreservefund. FortheyearendedJune30,202,theTownofCulenreceivedconfiscatedrugrevenues whicharerestrictedforexpenditureondrugpolicingactivities.thetownacountsforthese revenuesinthegeneralfundasalowedbygasbcod,sec130.107whichnotesthatifthe purposeisnorflalyf'mancedthroughthegeneralfund,thatfund(insteadofaspecial revenuefund)maybeusedtoacountforestrictedresourcesandexpendituresaslongas aplicablelegalrequirementscanbesatisfied. CertainprocedsofthegeneralfundCertificateofIndebtednes,Series19,aswelas certainresourcesetasidefortheirepayment,areclasifiedasrestrictedasetsonthe balanceshetbecausetheiruseislimitedbyaplicablecovenants. Thereshalbesetasideintoa"CertificatesofIndebtednes,Series19,ReserveFund,"an amountatleastequalto10%oftheamountobepaidmonthlyintothesinkingfunduntil therehasbenacumulatedthereinasumequaltothehighestcombinedprincipaland interestfalingdueinanysucedingyear.themoneyinthereservefundistobeused solelyforthepurposeofpayingtheprincipalandinterestonthecertificateaswhichthere 24

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 wouldotherwisebedefault. N.Compensatedabsences:Employesarealowedtoacruetendaysofsickleaveachyear. Employescanbepaidsickleaveonlywhensick.Sincethemployes'acumulatingrights toreceivecompensationforfutureabsencesarecontingentupontheabsencesbeingcaused byfutureilnesesandsuchamountscanotbereasonablyestimated,aliabilityforunused sickleaveisnotrecordedinthefinancialstatements. Employesaregrantedanualeaveasfolows >3yearsofservice 3-8yearsofservice >8yearsofservice 5days(40hours) 10days(80hours) 15days(120hours) Anualeaveisgrantedtoeachemployeontheiraniversarydateofemploymentbasedon yearsofservice.nocaryoverisalowedforanualeave.uponterminationof employment,anemployewilbepaidforunusedvacationasoftheterminationdate. Acumulatedunpaidanualeaveisacruedwhenincuredintheproprietaryfunds(using theacrualbasisofacounting.)suchamountsarenotacruedingovernmentalfunds (usingthemodifiedacrualbasisofacounting),howevertheseamountsarerecordedinthe GelxeralLongTermDebt&countGroup.AtJue30,202,acumulatedunpaidvacation paywas$4,397andanacrualinthegenerallongtermdebtacountgroupwas recognized. O.Long-termobligationsLong-termobligationsexpectedtobefinancedfromproprietary fundoperationsareacotmtedforinthosefunds. P.Fundequi_~ ContributedCapital- Contributedcapitalisrecordedinthenterprisefundsforcapitalgrantsrestrictedforthe acquisitionorconstructionofcapitaiasets.fortheyearendedjune30,202,thetown closedepreciationexpensedirectlyrelatedtothecontributedcapitalacountforthose asetswhichwereconstructedwithresourcesexternalyrestrictedforcapitalacquisitionsin acordancewithgasbcodificationsectiong60.1i6.

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30.202 Reserves- Reservesrepresenthoseportionsofundequitynotapropriableforexpendituresorlegaly segregatedforaspecificfutureuse. DesignatedFundBalances- Designatedfundbalancesrepresententativeplansforfutureuseofinancialresources expendituresorexpenses.transactionsthatconstitutereimbursementstoafundfor Quasi-externaltransactionsareacountedforasrevenues expenditures/expensesinitialymadefromithatareproperlyaplicabletoanotherfundare recordedasexpenditures/expensesinthereimbursingfundandasreductionsof expenditures/expensesinthefundthatisreimbursed. Alotherinterfundtransactions,exceptquasi-externaltransactionsandreimbursements,are reportedastransfers.nonrecuringornon-routinepermanentransfersofequityarereported asresidualequitytransfers.alotherinterfundtransfersarereportedasoperatingtransfers. R,SalestaxesThevotersoftheTownofCuUenaprovedaI%salesandusetaxonJanuary 20,1970.Thepropositionaprovedbythevoterspecifiesthatherevenuemaybeusedfor anylawfulcorporatepurpose.onnovember21,1987,thevotersaproveda1/2%salesand usetaxwhichspecifiesthatherevenuemaybeusedforthepurposeofconstructing, operatingandmaintainingthesewersystem,waterworks,garbagecolectionandwaste disposalfacilities,firedepartmentstationsandrelatedfacilities,publicparksandrelated faeilities,andstrets,aleys,sidewalksandbridgesandforpaymentofsalariesofnonelectedmunicipalemployes. OnApril29,195,thevotersaprovedanaditional1%salesandusetaxwhichspecifies thatrevenuemaybeusedforanylawfulpurposeforthetownandauthoritytofundthetax procedsintobondstopaythecostsofanylawfulcapitalimprovementsforfluetown. S.TotalcolumnsoncombinedstatementsTotalcolumnsonthecombinedstatementsare captioned"memorandumonly"toindicatethatheyarepresentedonlytofacilitatefinancial analysis.datainthesecolumnsdonotpresentfinancialposition,resultsofoperations,or changesinfinancialpositioninconformitywithgeneralyaceptedacountingprinciples.

TOWNOFCULEN.LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 Neitheraresuchdatacomparabletoaconsolidation,lnterfundeliminationshavenotben madeintheagregationofthisdata. 2.Advaloremtaxes FortheyearendedJune30,202,taxesof7.15milswereleviedonpropertywithasesed valuationstotaling$1,526,06andwerededicatedasfolows: Generalcorporatepurposes Totaltaxesleviedwere$10,91 AdvaloremtaxesatachasanenforceablelienonthevaluationofpropertyasofJanuary1,of eachyear.thetownofculenbilsandcolectsitspropertytaxesusingtheasesedvalues determinedbythetaxasesorofwebsterparish. 3.Cashandcasheauivalents AtJune30,202,theTownofColenhadcashandcashequivalentstotaling$189,086as folows: Petycash Demandeposits $823 Certificatesofdeposit 7,683 Total $189086 10,580 Thesedepositsarestatedatcost,whichaproximatesmarket.Understatelaw,thesedeposits(or theresultingbankbalances)mustbesecuredbyfederaldepositinsuranceorthepledgeof securitiesownedbythefiscalagentbank.themarketvalueofthepledgedsecuritiesplusthe Thesesecuritiesareheldinthenameofthepledgingfiscalagentbankinaholdingorcustodial federaldepositinsurancemustataltimesequaltheamountondepositwiththefiscalagent. bankthatismutualyaceptabletobothparties.atjune30,202,thetownofculenhad $210,80inbankdeposits.Thesedepositsaresecuredfromriskby$10,340ofederaldeposit insuranceand$432,01ofpledgedsecuritiesheldbythecustodialbankinthenameofthefiscal agentbank(gasbcategory3).eventhoughthepledgedsecuritiesareconsidered uncolateralized(category3)undertheprovisionsofgasbstatement3,louisianarevised

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 Statute39:129imposesastatutoryrequirementonthecustodialbanktoadvertiseandselthe pledgedsecuritieswithin10daysofbeingnotifiedbythetownthathefiscalagenthasfailedto paydepositedfundsupondemand, 4.Restrictedasets Forthegovernmentfundtypes,therestrictedasetswereaplicabletothefolowingatJune30 202: Confiscatedrugrevenues CertificateofIndebtednesinkingfund $2,19 CertificateofIndebtednesreservefund 1,281 Total 4,257 Fortheproprietaryfundtypes,restrictedasetswereaplicabletothefolowingatJune30,202 Customers'meterdeposits-cash Customers'meterdeposits-investment $3,915 Sewerevenuebondsinkingfund 20,60 Sewerevenuebondreservefund Sewerevenuebondcontingencyfund 16,431 2,581 Total $60,679 17,152 28

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 5.Chan~esin~eneralfixedasets Asumaryofchangesingeneralfixedasetsispresentedbelow: Land Buildings Improvementsother thanbuildings Equipment Constructioninprogres Totalgeneralfixedasets Balance June30,201 $69,693 414,526 791,257 605,413 94.048 $1,974,937 Balance AditionsRetirementsJune30.202 96,684 7,238 ~2 6.ProrietarvfundtvDeoroertv,nlantandeauioment (2,50) (94,048) 69,693 414,526 87,941 610,151 1.982.31_ AsumaryofchangesintheWaterandSewerSystemFundsproperty,plantandequipmentis presentedbelow: Description Land&easements Watertank Waterwels/system Waterlines Sewersystem Oxidationpond Equipment Buildings Totals Balance June30,201Aditions $7,925 3,319 16,538 901,245 1,972,52 32,958 601,329 3.745 5,30 1,357 Balance RetirementJune30.202 7,925 3,319 171,838 901,245 1,972,52 32,958 602,686 3.745 3,726,238

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30.202 7.Chan~esinlonc,-termdebt Thefolowingisasumaryofchangesinlong-termdebtfortheyearendedJune30,202 Bondspayable,July1,201 Bondsretired Bondspayable,June301202 Certificateof Indebtednes $9,481 QI7,017) $8j!&~464 Revenue 287,38 (35,532) 251,856 BondsatJune30,202,arecomprisedofthefolowingindividualisues CertificatesofIndebtednes,Series19: $120,165CertificatesofIndebtednes,Series19, datednovember4,19;dueinmonthlyinstalments instalmentsof$1,281throughnovember4,209; interestat4~% $~t2,464 Revenuebonds: $530,0sewerevenuerefundingbondsof192 datedjanuary15,192;dueinmonthlyinstalments of$2,581throughjanuary15,2032;interestat5%.$251,856 TheanualrequirementstoamortizealdebtoutstandingasofJune30,202,includinginterest paymentsof$14,728arepresentedbelow: YearEnding June30, 202 203 204 205 206 Thereafter Ce~ificatesof Indebtednes $15,374 15,374 15,374 15,374 15,374 ~8,505 $95,372 Revenue 253,673 253,673

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 Managementhasbenpayingandplanstopayinthefutureanaditional$50permonthonthe outstandingcertificatesofindebtednes.ifthesepaymentsaremadethenthetotalrequirements toamortizethedebtwilbe$91,276. OnAugust15,202,managementelectedtopayoftheoutstandingrevenuebondsconsistingof principalandinterestof$249,592. ThefolowingisacomputationoflegaldebtmarginatJune30,202 Netasesedvalue $1,526,06 Debtlimit-10percentoftotalasesedvalue $152,607 8.Salesandusetax EfectiveJuly1,195,anaditionalI%salesandusetaxwasleviedbytheTownofCulento beusedforanylawfulpurposeforthetown.salestaxescolectedonthe2%salesandusetax totaled$86,816fortheyearendedjune30,202. Salestaxescolectedonthe1/2%salesandusetaxtotaled$21,704fortheyearendedJune30 202. 9.Ftowofunds:restrictionsonuse-sewersystemrevenues UnderthetermsofthebondindenturefortheoutstandingRefundingRevenueBondsof192,al incomeandrevenuesearnedorderivedfromtheoperationofthesewersystemarepledgedand dedicatedtotheretirementofsaidbondsandaretobemaintainedandadministeredinthe folowingorderofpriorityandexprespurposes: (a)thepaymentofalreasonableandnecesaryexpensesofadministering,operating,and maintainingthesystem. (b)thepaymentofsaidrevenuerefundingbonds,includinginterest.

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 (c)monthlypaymentsof$130aretobemadetothebondreserveacountuntil$30,973has benacumulatedtherein.fundsavailableinthebondreserveacountmaybeused onlyforthepaymentofbondinstalmentsandinterestwhensuficientfundsarenoton depositintheoperatingacount. (d)monthlypaymentsof$134aretobemadetothebondcontingencyacount.fundsin thisacountmaybeusedforextensions,aditions,improvements,andreplacements necesarytoproperlyoperatethesystem. 10.Contingentliabilities AtJune30,202,therewasnolitigationpendingagainstheTownofCulen 1.Interfundreceivablesandoavables Duringthecourseofoperations,numeroustransactionsocurbetwenindividualfundsfor godsprovidedorservicesrendered.thesereceivablesandpayablesareclasifiedas"duefrom otherfunds"or"duetotherfunds"onthebalanceshet.atjune30,202,suchinterfund receivablesandpayableswereasfolows: GeneralFund Receivables Interfund Interfund SpecialRevenueFunds: $7,857 Payables 32,02710 RevolvingLoanProgram %SalesTaxFund 25,208 EnterpriseFund 2%SalesTaxFund 4,968 10 $~ 5,04 43,i7 1,i40

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 12RetirementSystem Priortothecurentfiscalyear,themployesoftheTownelectedtoterminatetheirparticipation inthemunicipalemploye'sretirementsystem.theplanwasterminatedefectivejuly1, 192,folowingtheconclusionoftheplan'sprescribedwaitingperiod.Alfundsondepositwith thesystemweresubsequentlydistributedtothemployesacordingtoplantermsand conditions.subsequentojulyl,192employesarecoveredbythefederalsocialsecurity System. MunicipalPoliceEmployesRetirementSystemofLoaisiana(System) PlanDescription.Alful-timepolicedepartmentemployesengagedinlawenforcementare requiredtoparticipateinthe~ystem.emp'toyeswhoretirea'torafterage5~5withat'least215 yearsofcreditableserviceoratorafterage5withatleast12yearsofcreditableserviceare entitledtoaretirementbenefit,payablemonthlyforlife,equalto31/3percentoftheirfinal averagesalaryforeachyearofcreditableservice.final-averagesalaryisthemploye's averagesalaryoverthe36consecutiveorjoinedmonthsthatproducethehighestaverage. Employeswhoterminatewithatleastheamountofcreditableservicestatedabove,andonot withdrawtheiremployecontributions,mayretireatheagespecifiedaboveandreceivethe benefitacruedtotheirdateoftermination.thesystemalsoprovidesdeathandisability benefits.benefitsarestablishedoramendedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreporthatincludesfinancialstatements andrequiredsuplementaryinformationforthesystem.thatreportmaybeobtainedbywriting tothemunicipalpoliceemployesretirementsystemoflouisiana,8401unitedplaza Boulevard,BatonRouge,Louisiana70809-250,orbycaling(25)929-741. FundingPolicy.Planmembersarerequiredbystatestatutetocontribute7.5percentoftheir anualcoveredsalaryandthetownofculenisrequiredtocontributeatanactuarialy determinedrate.thecurentrateis9.0percentofanualcoveredpayrol.thecontribution requirementsofplanmembersandthetownofcunenarestablishedandmaybeamendedby statestatute.asprovidedbylouisianarevisedstatutel1:103,themployercontributionsare determinedbyactuarialvaluationandaresubjectochangeachyearbasedontheresultsofthe valuationforthepriorfiscalyear.thetownofculencontributionstothesystemfortheyears endedjune30,202and201,were$9,157and$8,61,respectively,equaltotherequired

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 contributionsforeachyear 13.Networkingcapital AtJune30,202,networkingcapitalforthenterprisefundoftheTownofCulenwasas folows: Curentasets Curentliabilities $1,130,624 Networkingcapital $83642 (293,98~) 14.OperatingLeases TheTownofCulenisobligatedundercertainleasesacountedforasoperatingleases. Operatingleasesdonotgiverisetopropertyrightsorleaseobligations,andtherefore,theresults oftheleaseagrementsarenotreflectedinthetown'sacountgroups.operatinglease paymentsfortheyearsendedjune30,202and201,amountedto$1,603and$1,763, respectively. AsofJune30,202,theTown'soperatingleasehadexpiredandwasnotrenewed. 15.Revolvin~LoanReceivable TheTownofCulenwasawarded$80,0infundingforaRevolvingLoanFundundertheRural BusinesEnterpriseGrantProgram.Thefimdsarebeingusedinconectionwitharevolving loanprogram,establishedbythetown,toasistareasmalbusinesdevelopmentandexpansion. InconectionwiththeRevolvingLoanFund,oneloanrecipientisdelinquentonrepaymentofa $45,0loanmadeonMay1,198.Theloanwasecuredbythemortgagedproperty.Asof June30,202,thetotaloutstandingloanbalancewas$39,471,andinterestreceivablewas $1,32.OnJuly2,201,thetownadoptedaresolutiontoinitiateforeclosureprocedings againstheloanrecipientfornon-paymantofthebalancedueonthenotesecuredbythe mortgagedproperty.duringthefiscalyearendedjune30,202,noactionhasbentaken regardingthecolectionprocedinginitiatedbythetownofculen. 34

TOWNOFCULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 16.Retainedefterbalance TheEnterpriseFundhadaretainedeficitbalanceof$3,729atJune30,202.Thisbalance consistedofthedeficitbalanceinthewaterfundintheamotmtof$4,174.inregardtothedeficit inthewaterfund,anordinanceincreasingwaterateswasintroducedinmay,202andadoptedin June,202.ThisordinancewentintoefectwiththeJune30,202utilitybiling,whichwas receivableinjuly,202.thisratewasabasicincreaseof$2.50percustomer,(from$6.50to $8.0)forthefirstwothousandgalonsandanincreaseof$.50(from$.75to$1.25)foral waterusedafterthefirstwothousandgalons.thisincreaseinrateshouldensurethathere wilnotbeadeficitinthenewbudgetyear. 17.PrioroeriodadiustmentduetoadotionofGASB-3 TheTownofCulenhasadoptedGovernmentalAcountingStandardsBoard(GASB)StatementNo. establishedstandardsforalgovernmentswithnonexchangetransactionsbyprovidingfourbroad 3,"AcountingandFinancialReportingforNunexchangeTransactions."GASBSNo.3, categoriesorclasesofnonexchangetransactionsandtheapropriaterequirementforecognizing revenuesinthefinancialstatementsforeachcategory.nonexchangetransctionsaregeneraly transactionswherethetowneithergivesabenefitoanotherpartywithoutreceivinganequal benefitorbyreceivingabenefitwithoutdirectlygivingequalvalue.examplesofnonexchange transactionsarerevenuesreceivedbythetownsuchasalestaxes,propertytaxeșandfranchise taxes. TheadoptionofGASBSNo.3asitapliestorecognizingnonexchangerevenuesoftheTown requiredthatacountingchangestoimplementhestatementbetreatedasanadjustmentofprior periods.

TOWN0]3CULEN,LOUISIANA NOTESTOFINANCIALSTATEMENTS June30,202 17.PrioroeriodadjustmentduetoadotionofGASB-3(cont' ArestatementofthebeginingfundbalanceandactivityfortheyearendedJune30,20was recognizedinthefinancialstatementsasfolows: SpecialRevenue Fundbalance,originalyreportedasofJune30,20 $257,753 Funds RestatedrevenuesrecognizeduringJune30,20 duetogasbsno.3 8,850 Fundbalancerestated,asofJune30,20 26,603 IncomeasoriginalyreportedasofJune30,201 30,151 Netadjustmentoincomeforevenuerestatement duringjune30,201duetogasbsno.3 3,525 Fundbalance,restatedasofJune30,201 forgasbsno.3 $30,279 36

FINANCIALSTATEMENTSOFINDIVIDUALFUNDS ANDACOUNTGROUPS

GENERALFUND Toacountforesourcestraditionalyasociatedwithgovernmentswhicharenotrequiredtobe acountedforinanotherfund.

ASETS CashCash-CDs Investments Taxesandfesreceivable Grantsreceivable Prepaidexpenses Duefromotherfimds- Revolvingloanprogram Capitalprojectsfired Enterprisefund Othereceivables Deposits Curentasets-restricted Cashinbank Cash-CDs Totalasets TOWNOFCULEN,LOUISIANA GENERALFUND COMPARATIVEBALANCESHET June30,202and201 LIABILITIESANDFUNDBALANCE Liabilities: Acotmtspayable Duetotherfimds- Revolvingloan Salestaxfund Enterprisefund Totaliabilities Fundbalance: Reservedfordrugpolicingactivities Reservedfordebtretirement Unreserved- DesignatedforLudwigPark Undesignated Totalfundbalance Totaliabilitiesandfiredbalance 40,263 9,98 128,143 9,376501C 7,847 6,96510 2,19 5.538 47,689 9,517 124,916 8,978 56,24650 10 10 4,656 7,13710 2,254 390 $28,389 10 30,176 1.751 60.416 2,19 5,538 1,924 140.762 150.423 62,514 30,176657 93,347 2,254 3.90 1,890 164.432 172,56 Theacompanyingnotesareanintegralpartofthisfinancialstatement. 39

42

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SPECIALREVENUEFUNDS TwoPercentSalesTaxFund-ToacountforthereceiptanduseofprocedsoftheTown's2%sales andusetax.therevenuefromthetaxmaybeusedforanylawfulcorporatepurpose. One-halfPercentSalesTaxFund-ToacountforthereceiptanduseofprocedsoftheTown's1/2% salesandusetax.therevenuesfromthetaxmaybeusedforanylawfulcorporatepurposeother RevolvingLoanProgramFund-ToacountfortheresourcesandexpendituresofaRuralBusines thanexpendituresforpolicesupliesandequipment. EnterpriseGrantfromtheRuralBusines-CoperativeServiceoftheU.S.Departmentof Agriculture.Grantfundsareusedtoestablisharevolvingloanprogramtoasistareasmalbusines developmentandexpansioneds.