app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/3BA1D...Budgetary comparison schedules: General fund 38 Sales tax special revenue fund 39 OTHER SUPPLEMENTARY INFORMATION

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CITY OF EUNICE, LOUISIANA

FinanciaJ Report

Year Ended June 30, 2009

Under provisions of state law. this report is a public docunnent. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office ofthe Legislative Auditor and, Vi/here appropriate, at the office of the parish clerk of court-

Release Date

TABLE OF CONTENTS

Page

No.

Independent Auditor's Report I - 2

BASIC FINANCIAL STATEMENTS

Statement of net assets 4 Statement of activities 5-6

FUND FINANCIAL STATEMENTS Balance sheet - govenmiental fund 8 Reconciliation ofthe govenmiental funds balance sheet

to the statement of net assets 9 Statement of revenues, expenditures, and changes in

fund balances - governmental funds 10 Reconciliation ofthe statement of revenues, expenditures,

and changes in fund balances of governmental funds to the statement of activities 11

Statement of net assets - proprietary fund 12 Statement of revenues, expenses, and changes in fund

net assets - proprietary fund 13 Statement of cash flow - proprietary fund 14-15 Statement of net assets - fiduciary fiind 16 Statement of changes in net assets - fiduciary fiind 17

Notes to basic fmancial statements 18-36

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General fund 38 Sales tax special revenue fund 39

OTHER SUPPLEMENTARY INFORMATION

Nonmajor govemmental funds -Balance sheet 43 Statement of revenues, expenditures, and changes in fund balances 44

Page No.

NONMAJOR SPECIAL REVENUE FUNDS Combining balance sheet - Special Revenue Funds 46 Combining statement of revenues, expenditures, and changes

in fund balances - Special Revenue Funds 47

NONMAJOR DEBT SERVICE FUNDS Combining balance sheet - Debt Service Funds 49 Combining statement of revenues, expenditures, and changes

in fijnd balances - Debt Service Funds 50

ENTERPRISE FUNDS Statement of revenues, expenses, and changes in net assets - Utility Fund 52

COMPLIANCE AND INTERNAL CONTROL

Report on Intemal Control over Financial Reporting on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ' 54-55

Schedule of Findings and Quesfioned Costs 56-57

Status of Prior Years Findings and Questioned Costs 58-59

Schedule of Compensation Paid to Council Members 60

Damall, Sikes, Gardes Frederick. (A CorprtTBttoo of Ccnifled PuHk Accounianis)

INDEPENDENT AUDITOR'S REPORT

The Honorable Mayor Robert A. "Bob" Morris and Members ofthe Council

City of Eunice, Louisiana

Eugaio H Damall, CPA Deceased, 2009

E Larry Sikes, CPA/PFS, CVA, CFP®

Danny P. Frederick, CPA

Clayton E. Damall, CPA, CVA

Eugene H Damall, III, CPA

Stephanie M. Higginbotham, CPA

John P. Aimalo, CPA/PFS

J, Stephen Gardes, CPA, CVA

Jennifer S. Ziegler, CPA, CFP®

Chns A. Miller. CPA, CVA

Stephen R. Dischler, MBA, CPA

Steven G. Moosa. CPA

M, Rebecca Gardes, CPA

Pamela Mayeux Bonin, CPA, CVA

Joan B Moody, CPA

Ench G. Loewer, III, CPA, M S TAX

Lauren F. Hcbert. CPA/PFS

Barbara Ann Watts. CPA

Craig C. Babineaux, CPA/PFS, CFP®

Jeremy C. Mcaux, CPA

Kathleen T. Damall, CPA

Dustin B. Baudin. CPA, M S Tax

Kevin S. Young, CPA

Adam J. Cuny. CPA

Chad M. Bailey, CPA

Carol C. Guilloiy. CPA

ChristyS. Dew, CPA

Cecilia A Hoyt, CPA

Blame M. Crochet, CPA, M.S.

Rachel W, Ashford, CPA

Veronica UBIeu, CPA

Jacob C Roberie, CPA

S, Luke Sonnicr, CPA

Kyle P. Saltzman, CPA

We have audited the accompanying fmancial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe City of Eunice, Louisiana, as of and for the year ended June 30, 2009, which collectively comprise the City's basic fmancial statements as listed in the table of contents. These financial statements are the responsibility of the City of Eunice, Louisiana's management. Our responsibility is to express opinions on these fmancial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eunice, Louisiana, as of June 30, 2009, and the respective changes in fmancial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated October 22,2009, on our consideration ofthe City of Eunice, Louisiana's intemal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over fmancial

2000 Kalisle Saloom Rd,

Suite 300 Ufayette, L^ 70508

Phone, 337.232,3312 Fax 337 237 3614

1231 E, Laurel Ave Eunice. LA 70535

Phone. 337,457,4146 Fax 337 457.5060

1201 Brasheaj-Ave 5uile3Dl

Morgm Cil>'. LA 70380 Phone 985 384,6264 Fax 985 384,8140

203 S Jefferson SUeel Abbeville. LA 70510 Phone 337 893.5470

Fax 337 893,5470

Member of' Amencan InsUiiMe of

Certified Public Accountmlj Socielv' of Louisiant

Certified Public Accountanis www difcpas com

reporting and compliance and the results of that testing and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit.

The City of Eunice, Louisiana has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements.

The budgetary comparison information on pages 38 and 39 are not a required part ofthe basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Eunice, Louisiana's financial statements. The combining and individual non-major fund financial statements are presented for purposes of additional analysis and are not a required part ofthe basic financial statements. The accompanying financial information listed as "Supplemental Information" in the table of contents is presented for purposes of additional analysis and is not a required part ofthe financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

A Corporation of Certified Public Accountants

Eunice, Louisiana October 22, 2009

BASIC FINANCIAL STATEMENTS


Statement of Net Assets June 30, 2009

Assets: Cash and cash equivalents Investments, at cost Receivables (net of allowance for uncoUectibles): Accounts Taxes

Due from other funds Prepaid items Restricted assets:

Cash and cash equivalents Investments, at cost

Capital assets: Depreciable (net) Non-depreciable

Total assets

Liabilities: Accounts payable Accmed liabilities Due to other funds Compensated absences payable Payable from restricted assets -

Customers' deposits Non-cunent liabilities

Due within one year: Bonds payable 100,000 - 100,000

Due in more than one year:

Govemmental Activities

$ 3,854,245 500,000

90,788 468,515

16,496 119,086

46,337 200,000

9,859,618 1,337,815

16,492,900

188,565 248,709

2,275 56,247

-

Business-Type Activities

$ 496,658

214,410

5,457 33;546

2,619 267,400

8,442,417

9.462,507

40,233 279,313

11,685

267,400

Total

$ 4,350,903 500,000

305,198 468,515

21,953 152,632

48,956 467,400

18,302,035 1,337,815

25,955,407

228,798 528,022

2,275 67,932

267,400

Compensated absences Bonds payable Total liabilities

t Assets: Investment in capital, net of related debt Restricted for prepaid items Restricted for debt service Unrestricted

Total net assets

98,672 2.060.000 2.754.468

9,037,433 119,086 246,337

4,335,576 S n.738.432 <;

-.

598.631

8,442,417 303,565

-117.894

8.863.876

98,672 2.060,000 3,353.099

17,479,850 422,651 246,337

4.453,470 X 22.602.308

The accompanying notes are an integral part ofthe basic financial statements.

4


Statement of Activities Year Ended June 30, 2009

Program Revenues

Activities

Govemment activities: General govemment Public safety:

Police Fire

Streets Culture and recreation Sanitation Airport Interest Total govemment activities

Business type activities: Gas Sewer

Total business-type activities

Total

Expenses

$ 1,889,889

2,449,891 1,129,776

856,545 946,900

23,394 110,888 118,520

7.525.803

2,076,952 1,067,103 3,144.055

Fees, Fines, and Charges for Services

$ 623,866

128,352 ------

752,218

1,940,363 1.247,032 3.187.395

S 3.939.613

Operating Grants and

Contributions

$

16,648 43,377

-7,158

---

67.183

---

S R1f!2

Capital grants and

Contributions

$

----

20,879 --

20.879

--_

S 2ft,879

General Revenues: Taxes -Property taxes, levied for general purpose Sales and use taxes, levied for general purposes Payment in lieu of taxes Franchise and chain store taxes

Gain (loss) on sale of capital assets Interest and investment earnings Miscellaneous Transfers

Total general revenues and transfers Change in net assets

Net assets - July 1,2008 Net assets - June 30, 2009

Net (Expense) Revenues and Changes in Net Assets

Governmental Activities

Business-Type Activities Total

$ (1,266,023) $

(2,304,891) (1,086,399)

(856,545) (939,742)

(2,515) (110,888) (118.520) _

(6.685,523)

$ (1,266,023)

(2,304,891) (1,086,399)

(856,545) (939,742)

(2,515) (110,888) (118.520)

(6.685.523)

(136,589) 179,929 43.340

(136,589) 179.929 43,340

(6.685,523) 43,340 (6.642.183)

666,323 4,872,656

7,600 753,932

(289) 83,074

1,516,019 (319.856)

7,579,459 893,936

12.844,496 ^ 13.738.432

----

128 12,647 4,820

319.856

666,323 4,872,656

7,600 753,932

(161) 95,721

1,520,839 -

337.451 380,791

8.483.085

7.916,910 1,274,727

21.327,581

The accompanying notes are an integral part ofthe basic fmancial statements.

6

FUND FINANCIAL STATEMENT (FFS)


Balance Sheet-Governmental Funds June 30, 2009

ASSETS

Cash and cash equivalents Investments, at cost Receivables

(net of allowance for uncoUectibles): Accounts Taxes

Due from other funds Prepaid items

Total assets

LIABILITIES AND FUND BALANCES

General Fund

$ 658,646 -

90,788 13,340 16,478

119,086

Sales Tax Fund

$ 2,966,152 500,000

.

---

Other Govemmental

$

Funds

275,784 200,000

.

-12,101

-

Total

$ 3,900,582 700,000

90,788 13,340 28,579

119,086

md^ s m M i ^ 4.«'i7..s7-i

Liabilities: Account payable Accrued liabilities Due to other funds Total liabilities

Fund balances: Reserved for prepaid items Reserved for debt service Unreserved, undesignated Total fund balances

Total liabilities and fund balances

$

L.

139,363 226,909

14,358 380,630

119,086 -

398.622 517,708

898.338

$

s_

49,202 78,047

. 127.249

--

3,338.903 3.338,903

3.466.1.52

$

L ™

--_ _

-246,337 241.548 487,885

487.885

188,565 304,956

14,358 507,879

119,086 246,337

3,979,073 4.344.496

S 4.852.375


8


Reconciliation ofthe Govemmental Funds Balance Sheet to the Statement of Net Assets


Total fund balances for govemmental funds at June 30, 2009 $ 4,344,496

Total net assets reported for govemmental activities in the statement of net assets is different because:

Capital assets used in govemmental activities are not financial resources and, therefore, are not reported in the funds. Those assets consist of:

Land $ 1,337,815 Building and Recreation, net of $4,489,402 accumulated depreciation 6,393,391 Infrastructure, net of $204,338 accumulated depreciation 2,359,021 Equipment, net of $1,304,195 accumulated depreciation 594,210 Vehicles, net of $1,599,854 accumulated depreciation 512.996 11,197,433

Sales taxes which were not measurable at year end and not considered available as current financial resources at year end 455,175

Elimination of interfund assets and liabilities: Due from other funds (12,084) Due to other funds 12.084

Some liabilities are not due and payable in the cunent period and, therefore, are not reported as liabilities in the funds. Those liabilities consist of:

Compensated absences (98,672) Recreation bonds payable (2,160.000)

(2,258.672)

Total net assets of govemmental activities at June 30, 2009 S 13.738.432


9


Statement of Revenues, Expenditures and Change in Fund Balances - Govemmental Funds


Revenues Taxes Licenses and permits Intergovemmental revenues Fines, forfeitures and bonds Liberty Cajun Music Show Interest Miscellaneous

Total revenues

General Fund

$ 1,420,255 518,493 457,680 122,021 105,373

7,030 735,535

3.366.387

Sales Tax Fund

$ 4,850,742 -

56,093 --

73,361 87.260

5,067.456

Other Govemmental

Funds

$ -

275,113 6,331

-2,683

_ 284.127

Total

$ 6,270,997 518,493 788,886 128,352 105,373 83,074

822,795 8,717.970

Expenditures: Current -General govemment Public safety Public works Health and welfare Culture and recreation Other

Capital outlay Debt service:

Principal retirement Interest and fiscal charges Total expenditures

1,355,926 3,210,393

736,780 8,969

651,384 51,544 60,704

75,740 49,800 41,424

-154,700

-1,645,876

13,399 125,377

---

285 -

1,445,065 3,385,570

778,204 8,969

806,084 51,829

1,706,580

6,075,700

263,307 18.060

95,000 100.460

358,307 118,520

2.248.907 334.521 8,659,128

Excess (deficiency) of revenues over expenditures (2.709.313) 2.818.549 (50.394) 58.842

Other financing sources (uses): Operating transfers in Operating transfers out Proceeds from sale of capital assets

Total other financing sources (uses)

2,956,412 (40,000)

3,060

2.919.472

(3,370,456)

(3,370.456)

195,442 (61,254)

134,188

3,151,854 (3,471,710)

3.060

(316.796)

Excess (deficiency) of revenues and other sources over expenditres and other uses

Fund balances, beginning Fund balances, ending

210,159

307.549

(551,907)

3.890.810

83,794

404.091 i 487.885

(257,954)

4,602,450

The accompanying notes are an integral part ofthe basic financial statements. 10


Reconciliation ofthe Statement of revenues. Expenditures, and Changes in Fund Balances of Govemmental Funds

to the Statement of Activities Year Ended June 30, 2009

Total net changes in fund balance at June 30, 2009 per statement of revenues, expenditures and changes in fund balances

$ (257,954)

The change in net assets reported for govemmental activities in the statement of activifies is different because:

Govemmental funds report Capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay which is considered expenditures on the statement of revenues, expenditures and change in fund balances

Depreciation expense for the year ended June 30, 2009

Proceeds from sale of capital assets is an other financing source in govemmental funds. However, in the Statement of Activities, only the proceeds in excess or below the capital asset book value are reported in the Statement of Activities

Add: Payments on long term debt

$ 1,438,946 (623.951) 814,995

(3,349)

358,307

Add: Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 21,914

Some items reported in the statement of activities do not require the use of cunent financial resources and, therefore, are not reported as expenditures in govemmental funds. These activities consist of:

Increase in compensated absences (39.977)

Total changes in net assets at June 30, 2009 per statement of acfivifies $ ii93.93f)


11


Proprietary Fund Statement of Net Assets

June 30, 2009

Business-Type Enterprise fund

Assets: Cash and cash equivalents Receivables (net of allowance for uncoUectibles) Due from other funds Prepaid items Ufility, plant and equipment, at cost Accumulated depreciation

Total assets

Liabilifies: Accounts payable Accrued liabilities Payable from restricted assets-Customers' deposits

Total liabilities

Net Assets: Investment in capital assets, net of related debt Unrestricted Total net assets

$ 766,677 214,410

5,457 33,546

16,415,703 (7,973,286) 9.462.507

40,233 290,998

267,400 598,631

8,442,417 421.459

% 8.863.876


12


Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Assets


Business - Type Activities - Enterpri:

Fund

Operating revenues: Charges for services $ 3,128,282 Other billings to customers 59.113 Total operating revenues 3.187,395

Operating expenses: Payroll and related benefits 503,549 Natural gas purchases 1,450,479 Supplies and materials 133,460 Repairs and maintenance 130,099 Office expenses 35,681 Professional fees 28,234 Insurance 165,385 Depreciation 324,632 Bad debts 34,153 Permits 14,504 Utilities and telephone 300,901 Miscellaneous 22.978 Total operating expenses 3,144,055

Operating income 43.340

Nonoperating income(loss): Interest earned on investments 12,647 Other income 4,820 Gain on sale of capital assets 128 Total nonoperating income 17,595

Income before operating transfers 60,935

Operating transfers: Operating transfers in 919,856 Operating transfers out (600.000) Total operating transfers 319,856

Change in net assets 3 80,791 Net assets, beginning 8.483.085 Net assets, ending


13


Proprietary Fund Statement of Cash Flows


Business - Type Activities - Enterprise

Fund

Cash flows from operating activities: Receipts from customers $ 3,367,752 Payments to suppliers (2,105,839) Payments to employees (503.549) Net cash provided by operating activities 758.364

Cash flows from noncapital financing activities: Other receipts 4,820 Transfers from other funds 919,976 Transfers to others funds (600.000) Net cash provided by noncapital financing activities 324,796

Cash flows from capital and related financing activities: Proceeds from meter deposits 4,220 Payments on note payable (136,929) Proceeds from sale of fixed assets 128 Acquisition of property, plant and equipment (967,440) Net cash used by capital and related financing activities (1.100.021)

Cash flows from investing acfivities: Interest on investments 12,647 Net cash provided by investing activities 12.647

Net decrease in cash and cash equivalents (4,214)

Cash and cash equivalents, beginning of year 770,891

Cash and cash equivalents, end of year S 766.677

(Continued)


14


Proprietary Fund (Continued) Statement of Cash Flows


Business - Type Activities - Enterprise

Fund

Reconciliafion of operating income to net cash provided by operating activities:

Operafing income $ 43,340 Adjustments to reconcile operating income to net cash provided by operating acfivities: Depreciation 324,632

Changes in current assets and liabilifies: Decrease in accounts receivable(net) 214,510 Decrease in prepaid items 6,203 Decrease in accounts payable (11,032) Increase in accrued liabilifies 180,711

Net cash provided by operating activities $ 758.364

Reconciliation of cash and cash equivalents per the statement of cash flows to the statement of net assets:

Cash and cash equivalents, beginning of year -Cash - unrestricted Cash - restricted

Total cash and cash equivalents

Cash and cash equivalents, end of year -Cash - unrestricted Cash - restricted

Total cash and cash equivalents

Net decrease

$ 502,409 268,482 770,891

496,658 270.019 766,677

s_ (4.214)


15


Fiduciary Fund Payroll Fund

Statement of Net Assets June 30, 2009

ASSETS

Cash $ 143,924 Due from other funds 2,275 Prepaid assets 6.759

Total assets $ 152.958

LIABILITIES

Accrued liabilifies $ 131,005 Due to other funds 21.953

Total liabilifies % 152.958

The accompanying notes are an integral part ofthe basic financial statements

16


Fiduciary Fund Payroll Fund

Statement of Changes in ^ Year Ended June 30,

Balance 6/30/2008

$ 121,455 7,031 2,275

S 130.7f?l

I

Net Assets 2009

Additions

$ 22,469

Sf 22.4f??

Deductions

$

2 _

272

277

Balance 6/30/2009

$ 143,924 6,759 2,275

s uz.m

ASSETS

Cash Prepaid assets Due from other funds

Total assets

LIABILITIES

Accrued liabilities $ 114,128 $ 16,877 $ - $ 131,005 Due to other ftinds 16.633 5.320 -_ 21.953 Total liabilities % 130.761 $ 22.197 S S, 152.958


17


Notes to Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Eunice was incorporated in 1909 under the Lawrason Act, and is administered under the Mayor and Board of Aldermen form of govemment. The accounting and reporting policies of the City of Eunice conform to United States generally accepted accounting principles as applied to govemmental units. The Govemmental Accounfing Standards Board is the accepted standard-setting body for establishing govemmental accounfing and financial reporting principles. GAAP includes all relevant Financial Accounting Standards Board (FASB) pronouncements in the govemment-wide financial statements, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions on or before November 30, 1989 have been applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Such accountuig and reporting procedures also conform to the requirements of Louisiana Revised Statutes 24:513 and to the guides set forth in the Louisiana Municipal Audit and Accounting Guide and to the industry audit guide. Audits of State and Local Governmental Units, published by the American Institute of Certified Public Accountants.

The following is a summary ofthe more significant accounting policies:

Reporting Entitv

In evaluating how to define the City for financial reporting purposes, management has considered all potenfial component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic, but not the only, criterion for including a potential component unit within the reporting entity is the goveming body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of goveming authority, the designation of management, the ability to significantly influence operations and accountability for fiscal matters. The other criterion used to evaluate potential component units for inclusion in the reporting entity is the existence of special financing relationships, regardless of whether the City is able to exercise oversight responsibilities.

Based on the foregoing criteria, the following govenmiental organizafions are not considered part ofthe City because they are not material in relafion to the financial statement taken as a whole and are thus excluded from the accompanying financial statements for the reasons noted:

The Eunice City Court and City Marshall are operated under the directorship ofthe City Judge and Marshall who are elected public officials. Revenues are derived from court costs and the City cannot significantly influence operations nor does it have responsibility for fiscal management. A copy of the financial statements can be obtained from the City of Eunice, Louisiana.

The Opelousas-Eunice Public Library is a joint venture between the cities of Opelousas and Eunice. The City of Eunice does not exercise significant influence over management or fiscal matters ofthe Library. A copy of the joint ventures separate financial statements can be obtained from the Opelousas-Eunice Public Library, P.O. Box 249, Opelousas, LA 70570.

18



NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The municipality's officials are also responsible for appointing the members ofthe board of the Housing Authority of Eunice, Louisiana. This agency is considered to be a related organization since the municipality appoints the goveming board but is not financially accountable for the organization. A copy ofthe financial statements can be obtained from the Eunice Housing Authority, P.O. Box 224, Eunice, LA 70535.

Basis of Presentation

Govemment - Wide Financial Statements (GWFS)

The statement of net assets and statement of activities display information about the nonfiduciary activities ofthe City of Eunice, the primary govemment, as a whole. They include all funds of the reporting entity. The statements distinguish between govemmental and business-type activities. Govenmiental activities generally are financed through taxes, intergovemmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services.

The statement of activities presents a comparison between direct expenses and program revenues for the business type acfivifies ofthe City and for each function ofthe City's govemmental activities. Direct expenses are those that are specifically associated with a program or function. Program revenues include (a) fees, fines, and charges paid by the recipients of goods and services offered by the programs, and (b) requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements

The accounts of the City of Eunice are organized on the basis of funds each of which is considered a separate accounting entity. Fund accounfing is designed to demonstrate legal compliance and to aid financial management by segregating transactions relating to certain govemment functions or activities. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses as appropriate.

Govemment resources are allocated to and accounted for in individual funds based upon the purpose for which spending acfivities are controlled. The various funds are grouped in the financial statements in this report, into seven generic fund types and three broad fund categories. The emphasis on fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterprise fund are at least 10 percent ofthe corresponding total for all funds of that category or type; and

19



NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

b. Total assets, liabilities, revenues, or expenditures/expense of the individual govemmental or enterprise fund are at least 5 percent ofthe corresponding total for all govemmental and enterprise funds combined.

The major funds ofthe City are described below:

Governmental Funds -

General Fund

The General Fund is the general operating fijnd ofthe City. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Fund - Sales Tax Fund

Special revenues funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally resfricted to expenditures for specific purposes.

Additionally, the City reports the followmg fund types:

Other St>ecial Revenue Funds

Special revenues funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally resfricted to expenditures for specific purposes.

Debt Service Funds

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs.

Fiduciary Fund

Fiduciary fund types are used to account for assets held on behalf of outside parties, including other govemments, or on behalf of other funds within the govemment. When these assets are held under the terms of a formal tmst agreement, either a pension tmst fund, a nonexpendable tmst fund or an expendable trust is used. The terms "nonexpendable" and "expendable" refer to whether or not the govemment is under an obligation to maintain the trust principal. Agency funds generally are used to account for assets that the govemment holds on behalf of others as their agent. The City of Eunice's fiduciary fund is the payroll fund.

20



NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Proprietary Funds -

Enterprise Fund

The Enterprise Fund is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises -where the mtent ofthe goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis to be financed or recovered primarily through user charges; or (b) where the goveming body has decided the periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The City of Eunice's enterprise fund is the utility fund. It accounts for the provision of gas and sewer services to residents ofthe City.

Proprietary funds are reported in accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and other Govemmental Entities that use Proprietary Fund Accounting. This standard requires that all applicable GASB pronouncements, Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) issued on or before November 30, 1989 be applied to proprietary acfivities unless they (FASB Statements and Interpretafions, ARB Opinions, and ARBs) conflict with or contradict GASB pronouncements.

GASB Statement No. 20 also states that for proprietary activifies management may elect to apply all FASB Statement and Interpretations issued after November 30, 1989, except for those that conflict with or confradict GASB pronouncements. Proprietary activities under control ofthe City will not elect to apply FASB Statements and Interpretations issued after November 30, 1989, unless they are adopted by GASB.

Measurement Focus/Basis of Accounting

Measurement focus is the term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless ofthe measurement focus applied.

Measurement Focus

On the govemment-wide statement of net assets and.the statement of activities, both govemmental and business-type activities are presented using the economic resources measurement focus as defined in item b. below.

In the fund financial statements, the "current financial resources" measurement focus or the economic resources" measurement focus is used as appropriate:

a. All govemmental ftinds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end ofthe period.



NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Confinued)

b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objecfives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncunent) associated with their activities are reported. Proprietary fund equity is classified as net assets.

Basis of Accounting

In the govemment-wide statement of net assets and statements of activities, both govemmental and business-type activities are presented using the accrual basis of accounfing. Under the accmal basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Govemmental fund financial statements are accounted for using the cunent financial resources measurement focus and the modified accmal basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Sales taxes are considered "measurable" when collected by the collecfion agency and are recognized as revenue at that time. Ad valorem taxes are recognized as revenue in the year in which they are billed. Fees and non tax revenues are recognized when received. Grants from other govemments are recognized when qualifying expenditures are incuned. Available means collectible within the cunent period or soon enough thereafter to pay current liabilities, usually 60 days.

Those revenues susceptible to accmal are property taxes, grant revenues and interest revenue.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incuned except that accumulated unpaid vacation and sick pay are not accmed and principal and interest on general long-term debt are recognized when due. Purchases of various operating supplies are regarded as expenditures at the time purchased.

The proprietary fund is accounted for using the accmal basis of accounting, whereby revenues are recognized when they are eamed and expenses are recognized when incurred.

Bad debts are written off when accounts became worthless.

Transfers between funds that are not expected to be repaid are accounted for as other financing sources (uses).

Budgets

Budgets are adopted on a basis consistent with generally accepted accounfing principles. Annual appropriated budgets are adopted for the general and some special revenue funds as required by law. All annual appropriations lapse at fiscal year end. Project-length financial plans are adopted for all capital project funds; therefore, they are not included in this report.

22




Encumbrances are not recorded in the financial statements.

The budget presented is as amended by the Board of Aldermen. Expenditures may not legally exceed budgeted appropriations by more than 5% at the individual fund level.

Program Revenues

Program revenues included in the Statement of Activities are derived directly from the program itself or from parties outside the City's taxpayers or citizenry, as a whole; program revenues reduce the cost ofthe function to be financed from the City's general revenues.

Allocafion of indirect expenses

The City reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. Indirect expenses of other functions are not allocated to those functions, but are reported separately in the Statement of Activities. Depreciation expense is specifically identified by function and is included in the direct expense of each function. Interest on general long-term debt is considered an indirect expense and is reported separately on the Statement of Activities.

Cash and Investments

Cash includes amounts in demand deposits. Investments include certificates of deposit and fime deposits. The bank balance of cash and investments is covered by federal depository insurance or by collateral in the name ofthe pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties.

Short-Term Interfund Receivable/Pavables

During the course of operations, numerous transactions occur between individual funds. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Interftind receivables and payables between funds within govemmental activities are eliminated in the Statement of Net Assets.

Prepaid Items

Payments made for services that will benefit periods beyond June 30, 2009, are recorded as prepaid items.

Capital Assets

Capital assets, which include property, plant, and equipment, are reported in the applicable govemmental or business-type activities columns in the govemment-wide financial statements. All purchased fixed assets are valued at cost or estimated historical cost. The amounts of estimated costs are immaterial to these financial statements. Donated fixed assets are stated at their fair market value on the date donated. The City maintains a threshold level of $2,500 or more for capitalizing capital assets.

23




Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of assets is as follows:

Buildings 40 years Equipment 7 years Vehicles 5 years Ufility system and improvements 25-50 years

Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line method. The estimated useful lives are as follows:

Gas system 67 years Sewerage system 40-67 years Meters & regulators 25 years Vehicles & other equipment 4-10 years

Compensated Absences

Vested compensatory time that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability ofthe govemmental fund that will pay it. Vested compensatory time ofthe proprietary fund is recorded as an expense and liability of that fund as the benefits accme to employees. In accordance with the provisions of Statement of Financial Standards No. 43, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. Vacation time is allowed January I st and lapse December 3r ' of each year if not used.

Long-Term Debt

The accounting treatment of long-term debt depends on whether the assets are used in govemmental fund operations or proprietary fund operafions and whether they are reported in the govemment-wide or fund financial statements.

All long-term debt to be repaid from govemmental and business-type resources is reported as liabilifies in the govemment-wide statements. The long-term debt consists primarily of the revenue bonds payable.

Long-term debt for govemmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures. The accounting for proprietary fund long-term debt is the same in the fund statements as it is in the govemment-wide statements.

24




Equity Classifications

In the govemment-wide statements, equity is classified as net assets and displayed in three components:

a. Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowing that are attributable to the acquisifion, construction, or improvement of those assets.

b. Restricted net assets - Consist of net assets with constraints placed on the use either by (I) extemal groups, such as creditors, grantors, confributors, or laws or regulations of other govemments; or (2) law through constitutional provisions or enabling legislation.

c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

d. In the fund financial statements, govemmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is classified the same as in the govemment-wide statements.

Revenues. Expenditure, and Expenses

Operating Revenues and Expenses -

Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenues and expenses not related to capital and related financing, noncapital financing, or investing acfivifies. All revenues and expenses not meeting this definition are reported as non operafing revenues and expenses.

Expenditures / Expenses -

In the govemment-wide financial statements, expenses are classified by function for both govemmental and business-type activities.

Iri the fund financial statements, expenditures are classified as follows:

Govemmental Funds - By Character

Proprietary Fund - By Operating and Nonoperating

In the fund financial statements, govemmental funds report expenditures of financial resources while proprietary funds report expenses relating to use of economic resources.

25




Interfund Transactions

Transacfions that constitute reimbursements to a fund expenditure/expense initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing ftand and as reductions of expenditures/expenses in the fund that is reimbursed.

All other interfund transactions, except quasi-extemal transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers.

For purposes of the statement of activities, all interfund transfers between individual govemmental funds have been eliminated.

Concentration of Risks

Concentration of risks with respect to the City is subject to the conditions of the limited geographical area ofthe City.

Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles required management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Statement of Cash Flows

For purposes ofthe statement of cash flows, all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased are considered to be cash equivalents.

NOTE 2 LEGAL COMPLIANCE - BUDGETS

The City follows these procedures in establishing the budgetary data reflected in these financial statements:

The City Clerk prepares a proposed budget and submits same to the Mayor and Council no later than fifteen days prior to the beginning of each fiscal year.

A summary ofthe proposed budget is published and the public is notified that the proposed budget is available for public inspection. At the same time, a public hearing is called.

A public hearing is held on the proposed budget at least ten days after publication ofthe call for the hearing.

26



NOTE 2 LEGAL COMPLIANCE - BUDGETS (Continued)

After the holding ofthe public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of an ordinance prior to the commencement ofthe fiscal year for which the budget is being adopted.

Budgetary amendments involving the fransfer of funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated requfre the approval ofthe Council.

Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles ofthe United States of America. Budgeted amounts are as originally adopted or as amended from time to time by the Board of Aldermen. The budget was amended prior to the fiscal year end June 30, 2009.

NOTE 3 CASH AND INTEREST-BEARING DEPOSITS

Under state law, the City may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The City may invest in certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2009, the City had cash, book balances and interest-bearing deposits as follows:

Demand deposits/savings ^ 5.511.I85

These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resulting bank balance) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value ofthe pledged securifies plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balance) at June 30, 2009, are secured as follows:

Bank balances

Federal deposit insurance Pledged securities (Category 3) Total

Excess

$ 5,621,052

250,000 5.850.147 6.100.147

^ 479.095

Pledged securities in Category 3 includes uninsured or unregistered investments for which the securities are held by the broker or dealer, or by its tmst department or agent, but not in the City's name. Even though the pledged securities are considered uncollateralized (Category 3) Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the City that the fiscal agent has failed to pay deposited funds upon demand.

27



NOTE 4 RECEIVABLES

Receivables at June 30, 2009 in the fund fmancial statements consist ofthe following:

Taxes Accounts Gross receivables

Less: allowance for uncoUectibles

Net total receivables

General Enterprise

$ 16,675 90,788 107,463

3.335

$ 298.563 298,563

84,153

Total

$ 16,675 389.351 406,026

87,488

Accounts receivables in the Enterprise Fund consist of billed and unbilled receivables relating to gas and sewerage services. Gas accounts receivable are divided into two billing cycles. Cycle 1 is billed for meters read from the 1st through the 15th and Cycle 2 is billed for meters read the 16th through 24*. Billed receivables at June 30, 2009 were $147,523 and unbilled receivables were $151,040.

Ad Valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes are levied by the City in September or October and are actually billed to the taxpayer in November. Billed taxes become delinquent on January 1 ofthe following year. Revenues from Ad Valorem taxes are budgeted in the year billed.

The City bills and collects its own property taxes using the assessed values detemiined by the tax assessors of St. Landry Parish and Acadia Parish.

For the year ended June 30, 2009 taxes of 11.77 mills were levied on property with an assessed valuation totaling $56,718,600 and were dedicated as follows:

General corporate tax Street maintenance

Mileage

6.77 5.00

11,77

mills mills

Duration

Permanent 2002-2011

Total taxes levied were $666,323. Taxes receivable, net of allowance for uncoUectibles, at June 30, 2009 were $13,340.

28



NOTE 5 CAPITAL ASSETS

Capital asset act ivi ty for the year was as follow:

Governmental activities: Capital assets not being depreciated:

Land Other capital assets:

Buildings & recreation Infrastructure Equipment Vehicles Total capital assets

Less accumulated depreciation Buildings & recreation Infrastructure Equipment Vehicles Total accumulated depreciation

Govemmental activities, capital assets, net

Business-type activities: Other capital assets:

Gas system Sewer system

Vehicles Equipment Total capital assets

Less accumulated depreciation Gas system Sewer system Vehicles Equipment Total accumulated depreciation

Business type acfivities, capital assets, net

Balance 6/30/2008 Additions Deletions

$ 5,563,763

9,292,976

142,234

465,336

15.464.309

2,600,172

4,536,376

123,823 404.329

$ 957,071

-10,369

967,440

85,783

216,512

6,013 16.324

7.664.700 324.632

16.046

11,389 4.657

16.046

Balance 6/30/2009

$ 1,314,015

10,755,432

1,440,584

1,796,249

2.128.323

17.434.603

4,194,100

135,906

1,184,965

1.533.845

7.048.816

S 10.?85.7§7

$ 23,800

127,361

1,122,775

117,776

47.234

1.438.946

295,302

68,432

134,850

125.367

623.951

2 S14.???

$

-

-15,620

62.707

78,327

-

-15,620

59.358

74.978

$ 3.34?

$ 1,337,815

10,882,793

2,563,359

1,898,405

2.112.850

18,795,222

4,489,402

204,338

1,304,195

1.599.854

7.597.789

Sll.l?7.433

$ 4,657 $ 5,559,106 10,250,047

11,389 130,845 : 475.705

^ 7.799.609 $ 642.808 1

16.415.703

2,685,955 4,752,888

118,447 415.996

7.973.286

^ 8.442.417

29



NOTE 6 LONG-TERM DEBT

The following is a summary of debt transactions for the City of Eunice during the year ended June 30, 2009:

Recreation complex bonds Note Payable - Fire Trucks Note Payable - LCDBG Compensated absences payable

6/30/08

$ 2,255,000 263,307 136,929 58,695

Addifions

$ --

43.991

Retirements

$ 95,000 263,307 136,929

-

6/30/09

$ 2,160,000 --

102.686

?g 2-7'^-931 .1? 4.1.991 S 4? .̂2,l(f ^ 2.262.686

Bonds payable at June 30, 2009 is comprised ofthe following individual issue:

Sales Tax Revenue Bonds (secured by proceeds of a 1% sales and use tax):

Recreafion Complex Bonds, Series 2004, dated 12/1/04, original issue of $2,550,000, retired annually in various installment amounts, bearing interest at 3.75% to 7% per annum, final maturity at 6/1/2024 $ 2.160.000

The aimual requirement to amortize all debt outstanding at June 30, 2009 including interest payments are as follows:

Year Ending June 30,

2010 2011 2012 2013 2014

2015-2019 2020-2024

Principle Payments

$ 100,000 105,000 110,000 115,000 120,000 705,000 905,000

Interest

$ 104,314 97,295 90,333 82,882 78,282

309,402 132,799

Total

$ 204,314 202,295 200,333 197,882 198,282

1,014,402 1,037,799

^ 2J6aOOQ .y S95.307

The Debt Service Fund has $246,337 available as of June 30, 2009 to service these debts.

30



NOTE 7 FLOWS OF FUNDS - RESTRICTIONS ON USE - SALES TAX REVENUES

The City of Eunice levies a 2.2% sales and use tax dedicated as follows:

Proceeds ofthe \% sales and use tax levied in 1978, are dedicated as follows:

Under the terms ofthe sales tax ordinance, all monies collected are deposited into a separate account.

Monies remaining in the sales tax fund after payment of collection expenses may be used for providing addifional general fund revenues and for the constmction, operafions and maintenance of capital improvements.

This is a 25 year sales and use tax that was renewed for an additional 25 years and will expire on December 31, 2028.

Proceeds ofthe 1% sales and use tax levied in 1962 are dedicated as follows:

Under the terms ofthe Recreational Complex, Sales Tax Bonds-Series 2004, all monies collected are deposited into a separate sales tax fund account.

After payment of collection expenses monies must be transferred monthly to a "Sales Tax Bond Sinking Fund" established for retirement of these bonds, in amounts equal to one-twelfth ofthe interest and principal ofthe bonds becoming due m the next maturity.

A "Sales Tax Bond Reserve Fund" is to be established and transfers from the sales tax fund are to be deposited until such time as the fund has accumulated sufficient funds to equal the highest combined interest and bond payments due for any succeeding fiscal year.

Monies remaining in the sales tax fund after payment ofthe above noted obligations maybe used for:

Opening, constmcting, paving, resurfacing and improving sfreets, sidewalks and bridges; constmcting and purchasing street lighting facilities; constmcting and improving drains, drainage canals and subsurface drainage; constmcting and purchasing fire department stations and equipment; constmcting and purchasing police department stations and equipment; constmcting and purchasing garbage disposal and health and sanitation equipment; constructing public buildings; purchasing, constructing and improving public parks and recreational facilities and acquiring the necessary equipment and fumishings therefore; purchasing equipment for civil defense; constructing, acquiring or improving any work of permanent public improvement; and purchasing and acquiring all equipment and fumishing for public works, buildings, improvements and facilities.

Providing funds, not to exceed ten percent (10%) ofthe proceeds of said tax for such year, to defray costs of operating and maintaining a public library.

31



NOTE 7 FLOWS OF FUNDS - RESTRICTIONS ON USE - SALES TAX REVENUES (Confinued)

Providing funds, not to exceed ten percent (10%) ofthe proceeds of said tax for such year, for the payment of salaries of municipal employees.

The 1962 sales and use tax is a permanent sales tax.

Proceeds ofthe .2% sales and use tax levied in 1988 are dedicated as follows:

Under the terms ofthe Bond Indenture for the Public Improvement Bond, ST-1997, all monies collected are deposited into a sales tax fund account.

After payment of collection expenses, monies must be transfened to a sinking fund established for retirement of these bonds, in amounts equal to one-sixth ofthe interest and one-twelfth ofthe bonds becoming due in the next maturity.

A reserve fund is established by monthly transfers from the sales tax fund of $ 1,000 until such time as the reserve fund has accumulated sufficient funds to equal the highest combined interest and bond payments due for any succeeding fiscal year.

Monies remaining in the sales tax fund may be used for constmcting, acquiring, extending, improvmg, operating and maintaining sewers and sewerage disposal facilities.

The 1988 sales and use tax is a permanent sales tax.

NOTE 8 PENSION COST

Municipal Employee's Retirement System

Membership in the retirement system is mandatory for all employees who are employed on a permanent basis working at least 35 hours per week. However, new employees over 60 years of age and employees covered by another retirement system are not eligible. Employees are eligible to retire at any age with thirty or more years of creditable service or age 55 with twenty-five years of creditable service. Creditable service means all periods of time for which credit is allowed towards any benefits. Upon retirement, members are entitled to a retirement benefit, payable monthly in an amount equal to three percent ofthe member's final compensation multiplied by years of creditable service, provided however, that: (1) any member who has held an elective office in a municipality which is a participating employer shall be paid an additional annuity equal to one-half of one percent for each year of such elected service, (2) for any employee who was a member only ofthe supplemental plan prior to the revision date, the benefit eamed for service credited prior to the revision shall be determined on the basis of one percent of final compensation plus two dollars per month for each year of service credited prior to the revision date, and three percent of final compensation ofeach year of service credited after the revision date; and (3) the benefit of the Section shall not exceed one hundred percent of a member's final salary.

32



NOTE 8 PENSION COST (Confinued)

Final compensation means the average monthly eamings during the highest thirty-six months or joined months if service has intermpted. Final salary means the average monthly eamings of a member during the twelve month period immediately preceding his death or the establishment of Plan A. The System also provides death and disability benefits which require five years of creditable service for eligibility.

The City has several pension plans covering substanfially all of its employees, as follows: Municipal Employees' Retirement System of Louisiana State of Louisiana - Municipal Police Employees' Refirement System State of Louisiana - Firefighters' Retirement System Louisiana State Employee's Refirement System

Substantially all employees are covered under the Municipal Employees' Retirement System of Louisiana except for firemen, policemen, and judges which are covered under the Firefighters' Retirement System, Municipal Police Employees' Retirement System, and Louisiana State Employees' Retirement System, respectively. Details conceming these plans follow:

Municipal Employees' Refirement System of Louisiana

Plan description:

The Municipal Employee's Retirement System of Louisiana (the System) is a cost-sharing multiple-employer public employee retirement system (PERS) as established and provided for by R.S. 11:1731 ofthe Louisiana Revised Statutes (LRS). The System is composed of two disfinct plans, Plan A and Plan B, with separate assets and benefits provisions. Employees ofthe City are members of Plan A.

The Municipal Employees' Refirement System of Louisiana issues a publicly available financial report that includes financial statements and required supplemental information. That report may be obtained by writing to Municipal Employees' Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, LA 70809.

Funding policy:

Plan members are required to contribute 9.25% of their annual salary and the City is required to contribute at an actuarially determined rate. The current rate is 13.5% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by the System's Board of Trustees. The City's contributions to the System for the years ended June 30,2009,2008 and 2007 were $ 184,875, $ 168,640, and $212,873, which were equal to the required contributions for each year.

State of Louisiana - Municipal Police Employees' Retirement System

Plan description:

The Municipal Police Employees' Retirement System (the System) is a cost sharing muUiple-employer retirement system (PERS).

33



NOTE 8 PENSION COST (Continued)

Membership is mandatory for any full-time police officer employed by a municipality ofthe State of Louisiana and engaged in law enforcement, empowered to make arrest, providing they do not have to pay social security and providing they meet the statutory criteria. Employees who retire at or after age 55 with at least 12 years of credited service are entitied to a retirement benefit payable monthly for life, equal to 3-1/3 percent of their average final compensation mulfiplied by the employee's years of credited service. Final compensation is the employee's monthly eamings during the 36 consecutive or joined months that produce the highest average. The System also provides death and disability benefits. Benefits are established by state statute.

The Municipal Police Employees Retirement System issues a publicly available report that includes financial statements and required supplemental information. That report may be obtained by writing to Municipal Police Employee's Retirement System, P.O. Box 94095, Capita] Station, Baton Rouge, LA 70809-9095.

Funding policy:

Plan members are required to contribute 7.5% of their annual covered salary and the City is required to contribute 9.5% as established by the state statue. The City's contributions to the System for the years ended June 30,2009,2008 and 2007 were $76,717, $ 115,461 and $ 128,055, respectively, which equaled the requfred confributions for each year.

State of Louisiana - Firefighters' Retirement System

Plan description:

The Firefighters' Retirement System (the System) is a cost sharing multiple-employer public employee retirement system (PERS), as established and provided for by R.S. 11:2251 through 2269 ofthe Louisiana Revised Statutes (LRS).

Membership is mandatory as a condition of employment beginning on date employed if the employee is on a permanent basis as a firefighter, not participating in another public funded retirement system and under age fifty (50) at date of employment. Employees who retire at or after age 50 with at least 20 years of credit service, or at or after age 55 with at least 12 years of credited service are entitled to a retirement benefit payable monthly for life, equal to 3-1/3 percent of their average final compensation multiplied by the employee's years of credited service. Final compensation is the employee's monthly eamings during the 36 consecutive or joined months that produce the highest average. The System also provides death and disability benefits. Benefits are established by state statute.

The Firefighter's Retirement System issues a publicly available financial report that includes financial statements and required supplemental information. That report may be obtained by writing to Firefighter's Refirement System, P.O. Box 94095, Capitol Station, Baton Rouge, LA 70804-9095.



NOTE 8 PENSION COST (Continued)

Funding policy:

Plan members are required to contribute 8.0% of their annual covered salary and the City is required to contribute at an actuarially determined rate. The current rate is 12.5% of annual covered payroll. The contribution requirements of Plan members are established and may be amended by the System's Board of Trustees. The City's contributions to the System for the years ended June 30, 2009, 2008 and 2007 were $77,319, $73,816 and $88,480, respectively, which equaled to the required contributions for each year.

NOTE 9 DUE FROM /TO OTHER FUNDS

General Fund Special Revenue Funds -

St.Landry & Acadia Parish Fire District Court Witness Fees Fund

Enterprise Fund -Utility Fund

Fiduciary Fund -Payroll Fund

Due From Other Funds

$ 16,478

12,083 . 18

9,265

2.275 S 49.11?

Due to Other Funds

$

1

14,358

-

3,808

21,953 40.11?

NOTE 10 RESTRICTED ASSETS - PROPRIETARY FUND TYPE

Restricted assets applicable to customers' deposits at June 30, 2009 are as follows:

Customers' deposits: Cash Investments, at cost

$ 2,619 267^400

NOTE 11 ENTERPRISE FUND OPERATIONS

Operations ofthe City of Eunice Utility System consist of a gas distribution system and sewer utility system. Operating results ofthe individual utilities for the year ended June 30,2009 are as follows:

Operating Revenues Operating Expenses

Operating Income (loss)

Gas Department Sewer Department

$ 1,940,363 2.076.952

•̂ rn6.589^

$ 1,247,032 1.067.103

S 179.929

35



NOTE 11 ENTERPRISE FUND OPERATIONS (Continued)

Operating expenses above include costs which cannot be directly associated with a single department; thus these expenses have been allocated on the basis of gross utility sales. For the fiscal year ended June 30, 2009, the Gas and Sewer Utilifies provided services to 4,385 and 5,627 customers, respectively.

36

REQUIRED SUPPLEMENTARY INFORMATION

37


Revenues; Taxes Licenses and permits Intergovemmental revenues Fines and forfeitures* Liberty Cajun Music Show Miscellaneous

Total revenues

Expenditures: Cunent -

General govemment Public safety Public works Health and welfare Culture and recreation Other

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Operating transfers in Operating fransfers out Proceeds from sale of capital assets


Excess (deficiency) of revenues and other sources over expenditures and other uses

Fund balances, beginning

Fund balances, ending

General Fund Budgetary Comparison Schedule

Year ended June 30, 2009

Original Budget

$ 1,380,300 $ 475,000 448,600

12,000 104,000 396,600

2,816,500

1,428,620 2,966,700

687,298 14,800

673,305 48,200

5,818,923

(-3.002.423^

3,000,000

3.000,000

(2,423)

343,121

$ m.m S

Final Budget

1,410,300 516,000 615,600

6,000 112,860 556.300

3,217.060

1,430,000 3,241,300

761,300 17,250

710,800 52.000

6,212.650

(2,995.590)

2,995,000

2,995,000

(590)

305.293

304.702

Actual

$ 1,420,255 518,493 457,680 122,021 105,373 742,565

3.366,387

1,355,926 3,210,393

736,780 8.969

712,088 51,544

6,075,700

a709.313)

2,926,412 (40,000)

3.060 2,919,472

210,159

307,549

S 517.708

Variance -Favorable

(Unfavorable)

$ 9,955 2,493

(157,920) 116,021

(7,487) 186.265 149.327

74,074 30,907 24,520

8,281 (1,288)

456 136.950

286.277

(68,588) (40,000)

3.060 (75.528)

210,749

2.256

S 213 005

38

CITY OF EUNICE, LOUISIANA Sales Tax Fund

Budgetary Comparison Schedule Year Ended June 30. 2009

Revenues: Taxes Intergovemmental revenues Interest Miscellaneous

Total revenues

Expenditures: Current -

General govemment Culture and recreation

Capital outlay

Total expenditures

Excess of revenues over expenditures

Other financing sources (uses): Operating transfers in Operating transfers out





Original Budget

$ 4,510,000 130,000 100,000

4,740.000

83,650 154,700

1,704.500

1.942.850

2,797,150

Final Budget

$ 4,840,000 122,000 70,000 10,000

5,042,000

80,150 154,700

2,403,500

2.638.350

2.403.650

Actual

$ 4,850,742 102,006 73,361 41,347

5.067.456

185,024 154,700

1.909,183

2,248,907

2,818.549

Variance -Favorable

(Unfavorable)

$ 10,742 (19,994)

3,361 31,347 25.456

(104,874)

494,317

389,443

414,899

(3.050.200) (3.379.000) (3.370.456) (3.050.200) (3.379.000) (3.370.456)

(253,050)

2,447.780

(975,350)

3,890.810

(551,907)

3,890.810

8,544 8.544

423,443

i 2 , m , m ^ 2.915.460 S 3.338.903 £ 122.443

39

OTHER SUPPLEMENTARY INFORMATION

40

OTHER FINANCIAL INFORMATION

41

NONMAJOR GOVERNMENTAL FUNDS

42

CITY OF EUNICE, LOUISIANA Nonmajor Govemmental Funds

Balance Sheet June 30, 2009

ASSETS Cash and cash equivalents Investments, at cost Due from other funds

Total assets

LIABILITIES AND FUND EQUITY Liabilifies:

Accounts payable Total liabilifies

Fund balances: Reserved for debt service Unreserved, undesignated

Total fiind balances


Special Revenue

Funds

Debt Service Funds

$ 229,447

12.101

"̂ 241.548

Totals

$ 46,337 S 275,784 200,000 200,000

: 12,101

$ 487.885

241,548 241,548

246,337

246.337

246,337 241,548 487,885

^ 487.885

43

CITY OF EUNICE, LOUISIANA Nonmajor Govemmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balances


Revenues: Intergovemmental revenues Fines, forfeitures and bonds Interest

Total revenues

Expenditures: Current -

General govemment Public safety Other

Debt service: Principal retirement Interest paid

Total expenditures


Other financing sources: Operating transfers in Operating transfers out

Total other financing sources




Special Revenue Funds

$ 275,113 6,331 1,094

282,538

13,399 125,377

-

138,776

143.762

-

_

143,762

97.786

$ 241.545

Debt Service Funds

$

1.589 1,589

285

95,000 100,460 195.745

(194.156)

195,442 (61.254) 134,188

(59,968)

306.305

$ 24M37

Totals

$ 275,113 6,331 2,683

284.127

13,399 125,377

285

95,000 100,460 334.521

(50,394)

195,442 (61,254) 134,188

83,794

404.091

$ 4§7.§85

44

NONMAJOR SPECIAL REVENUE FUNDS

Special revenue fiinds are used to account for specific revenues that are legally restricted to expenditures for particular purpose.

PUBLIC SAFETY TESTING FUND

To account for receipts and expenditures associated with court fees collected in connection with drug and alcohol related driving offenses.

COURT APPEARANCE BOND FUND

To account for receipts and expenditures associated with the receipt of appearance bonds collected on anests and traffic citafions.

ST. LANDRY & ACADIA PARISH FIRE DISTRICT

To account for receipts and expenditures associated with the cooperative agreement between the city and area fire districts, to provide fire protection.

WITNESS FEES FUND

To account for receipts and expenditures associated with witness fees collected by City Court.

45

CITY OF EUNICE, LOUISIANA Nonmajor Special Revenue Funds

Combining Balance Sheet June 30, 2009

Public Safety Testing Fund

Court Appearance

Bond Fund

St. Landry & Acadia Parish Fire

District

Witness Fees Fund Totals

ASSETS

Cash Due from other funds

4,559 5,714 214,148 5,026 229,447 12,083 18 12,101

Total assets l A ^ ^ 5.714 S 226.231 % 5.044 % 241.548

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable

Total liabilities

Fund balances: Unserved, undesignated

Total fund balances


4.559 4,559

^ 4.559

$ _

5.714 5.714

s__ S.714

226.231 226,231

5.044 5,044

241,548 241,548

S 226.231 l ^ J M U A L m

46

CITY OF EUNICE, LOUISIANA Nonmajor Special Revenue Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2009

Revenues: Intergovemmental revenues Fines, forfeitures and bonds Interest

Total revenues

Public Safety

Testing Fund

$ 3,076 -

38 • 3,114

Court Appearance

Bond Fund

$ 6,331

29 6.360

St. Landry & Acadia

Parish Fire

District

$ 259,149 -

1,005 260,154

Witness Fees Fund

$ 12,888 -

22 12.910

Totals

$ 275,113 6,331 1.094

282.538

Expenditures: . Cunent -

General govemment Public safety

Total expenditures




7.351 7,351

(4.237)

8,796

S 4,^5? S

6.246 6.246

114

5.600

: .5.714

111,780 111,780

148.374

77.857

S 226.231

13,399

13,399

(489)

5,533

? J.044

13,399 125.377 138.776

143.762

97.786

S 24I.M8

47

NONMAJOR DEBT SERVICE FUNDS

RECREATION COMPLEX DEBT SERVICE FUND

To accumulate monies for payment ofthe $ 2,550,000 Recreation Complex Sales Tax Revenue Bonds, Series 2004.

SINKING FUND

To accumulate monies for payment of bond indebtedness. Bond was paid out during FYE 6/30/07.

48

CITY OF EUNICE, LOUISIANA Nonmajor Debt Service Funds

Combining Balance Sheet June 30, 2009

Cash Investments, at cost

Total assets

Recreation Complex Debt Service Fund

$ 46,337 200,000

S 246.357

City of Eunice

Sinking fund ST-1997

S

S

$

Totals

46,337 200,000 246.337

Liabilities: Due to sales tax fund

Total liabilities

Fund balances: Reserved for debt service Unreserved, undesignated

246.337

246.337

246,337

246,337

Total liabilities and fund balances S 246.337

49

CITY OF EUNICE, LOUISIANA Nonmajor Debt Service Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2009

Recreation Complex Debt Service Fund

City of Eunice Sinking fund

ST-1997 Totals

Revenues: Interest

Total revenues 756 756

833 833

1,589 ,589

Expenditures: Cunent -Other Debt service -

Principle retirement Interest paid

Total expenditures


Other financing sources (uses): Operating transfers in Operating transfers out

Total other financing uses


Fund balance, beginning

Fund balance, ending

285 285

95,000 100,460 195,745

(194.989)

195,442

195.442

453

245.884

S 246.337 If

-

_

833

(61.254) (61.254)

(60,421)

60.421

- %

95,000 100,460 195,745

(194,156)

195,442 (61,254) 134,188

(59,968)

306,305

246.337

50

ENTERPRISES FUNDS

UTILITY FUND

To account for the city's operation ofthe gas and sewer departments.

51

CITY OF EUNICE, LOUISIANA Enterprise Fund

Utility Fund

Statement of Revenues, Expenditures and Changes in Net Assets Year Ended June 30, 2009

Operating revenues: Charges for services Other billings to customers

Total operating revenues

Operating expenses: Payroll and related benefits Natural gas purchases Supplies and materials Repairs and maintenance Office expenses Professional fees Insurance - general Depreciation Group insurance Bad debts Permits Utilities and telephone Miscellaneous

Total operating expenses

Operating income (loss)

Nonoperating income (loss): Interest eamed on investments Other revenue Gain on sale of capital assets

Total nonoperating income

Income before operating transfers

Operating transfers: Operating transfers in Operating transfers out

Total operating transfers

Change in net assets

Net assets, beginning

Net assets, ending

Gas Department

$ 1,901,425 38.938

1.940.363

267,453 1,450,479

25,124 51,532 28,553 10,600 51,439 91,115 49,535 34,153

-3,610

13,359 2,076,952

S (136.589)

Sewer Department

$ 1,226,857 20,175

1,247,032

236,096 -

108,336 78,567

7,128 17,634 26,558

233,517 37,853

-14,504

297,291 9,619

1,067,103

S 179.929

Total

S 3,128,282 59.113

3.187,395

503,549 1,450,479

133,460 130,099 35,681 28,234 77,997

324,632 87,388 34,153 14,504

300,901 22.978

3,144.055

43.340

12,647 4,820

128 17.595

60.935

919,856 (600.000) 319.856

380,791

8,483,085

$ 8.863.876

52

INTERNAL CONTROL, AND

COMPLIANCE

53

Damall, Sikes, Gardes Frederick. (A CorpOTSlioo oTCcnified Public AccnuntanU)

Report on Intemal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of

Financial Statements Performed in Accordance with Government Auditing Standards

The Honorable Mayor Robert A. and Members ofthe Council

City of Eunice, Louisiana

'Bob" Monis

Eugmc H, Dania]l, CPA, Deceased, 2009

E. Larry Sikcs, CPA/PFS, CVA. CFP®

Danny P Frederick. CPA

Clayton E, Damall. CPA, CVA

Eugene H. Dainall, in , CPA

Stephanie M, Higginbotham, CPA

John P. Annato. CPA/PFS

J Stephen Gardes, CPA, CVA

Jennifer S. Ziegler, CPA, CFP®

Chris A. Miller, CPA, CVA

Stephen R. Dischler. MBA. CPA

Steven 0 . Moosa, CPA

M. Rebecca Gardes, CPA

Pamela Mayeux Bonin, CPA, CVA

Joan B. Moody, CPA

Erich G. Loewer, IIL CPA, M S TAX

Lauren F. Hebert, CPA/PFS

Barbara Ann Watts, CPA

Craig C. Babineaux, CPA/PFS, CFP®

Jeremy C. Meaux, CPA

Kathleen T Damall, CPA

Dusdn B. Baudin, GPA, M.S. Tax

Kevin S. Young, CPA

Adam J. Curry, CPA

Chad M. Bailey, CPA

Carol C. Guillory, CPA

ChristyS. Dew, CPA

Cecilia A. Hoyt, CPA

Blaine M. Crochet. CPA, M.S.

Rachel W, Ashford, CPA

Veronica LeBleu, CPA

Jacob C. Roberie, CPA

S. Luke Sonnier, CPA

Kyle P. Saltzman, CPA

We have audited the financial statements ofthe govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund mformation ofthe City of Eunice, Louisiana, as of and for the year ended June 30, 2009, which collectively comprise the City of Eunice's basic financial statements and have issued our report thereon dated October 22,2009. We conducted our audit in accordance with generally accepted auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United State.

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the City's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe City's intemal control over financial reporting. Accordingly, we do not express an opinion on the effecfiveness ofthe City's intemal control over financial reporting.

Our consideration of intemal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in intemal control over financial reporting that we consider to be significant deficiencies.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or report financial data reliably in

2000 Kalisie Saloom Rd Sidle 300

Lorajelle, LA 70508 Phone' 337,232 3312 Fax. 337 237 3614

1231 E Laurel Ave, Eunice. LA 70535

Phone'337 4574146 Fax, 337 457 5060

1201 BrashcarAve Suite 301

Morgan Cily, LA 70380 Phone' 985 384 6264 Fa.x 985 384 8140

203 S Jefferson Street Abbeville. LA 70510 Phone' 337 893 5470 Fax; 337.893 5470

Member of American bistitule of

Cerufied PubUc Accountants Society of Louinana

Certified Public Accouitanti www dsfcpas com

54

accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe City's financial statements that is more than inconsequential will not be prevented or detected by the City's internal control. We consider the deficiencies described in the accompanying schedule of findings and quesfioned costs as 09-1, and 09-2 to be significant deficiencies in intemal control over financial reporting.

A material weakness is a significant deficiency or a combination of significant deficiencies that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the City's intemal control.

Our consideration ofthe intemal control over financial reporting was for the limited purpose described in the first paragraph of this secfion and would not necessarily idenfify all deficiencies in intemal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none ofthe significant deficiencies described above are material weaknesses.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the City's responses and, accordingly, we express no opinion on them.

This report is intended solely for the informafion and use ofthe management, federal awarding agencies and pass through entities. However, under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document, therefore its distributions not limited.

A Corporation of Certified Public Accountants

Eunice, Louisiana October 22, 2009

55


Schedule of Findings and Quesfioned Costs Year Ended June 30, 2009

Secfion 1 SUMMARY OF AUDITOR'S RESULTS

FINANCIAL STATEMENTS

Auditor's Report

An unqualified opinion has been issued on the City of Eunice, Louisiana's financial statements as of and for the year ended June 30, 2009.

Material Weakness and Significant Deficiencies - Financial Reporting

TTiree significant deficiencies in intemal control over financial reporting were disclosed during the audit ofthe financial statements and are shown as item 09-1 and 09-2 in Part IL These significant deficiencies are not considered material weaknesses.

Material Noncompliance - Financial Reporting

There were no instances of noncompliance noted during the audit ofthe financial statements.

FEDERAL AWARDS

This section is not applicable for the fiscal year ended June 30, 2009.

Section 2 Findings Relating to an Audit in Accordance with Government Auditing Standards

09-1 Segregation of Accounting Functions

Finding:

Due to the small number of accounting personnel, the City did not have adequate segregation of functions within the accounting system.

Recommendation:

Based on the size of the operation and the cost-benefit of additional personnel, it may not be feasible to achieve complete segregation of duties.

Response:

A complete segregation of duties is not feasible due to the cost-benefit of hiring additional personnel and the size ofthe City's operations.

56


Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2009

09-2 Cash Management

Finding:

The following checking accounts and activity of these accounts are not recorded within the City's centralized accounting system:

- The Fire Department Safety Program account.

- The Honor Guard account.

Recommendation;

The City should maintain control and record activity for all bank accounts associated with City's federal tax identification number.

Response:

The activity of these bank accounts will be recorded in the City's accounting records.

Section 3 Findings and Questioned Costs Relating to the Federal Programs

This section is not applicable for the fiscal year ended June 30, 2009.

57


Schedule of Prior Year Findings and Questioned Costs Year Ended June 30, 2009

08-1 Individual Segregation of Accounting Functions

Finding:

Due to the small number of accounfing personnel, the City did not have adequate segregation of functions within the accounting system.

Recommendation:

Based on the size ofthe operation and the cost-benefit of additional personnel, it may not be feasible to achieve complete segregation of duties.

Status:

This finding has not been resolved. See current finding 09-01.

08-2 Cash Management

Finding:

The following checking accounts and activity of these accounts are not recorded within the City's centralized accounting system:

- The Police Department Evidence Fund account. We also noted that listing of deposits and withdrawals is maintained; however, the identity of the individuals and their respecfive balances maintained in this account was not available at June 30, 2007.

- Drug forfeiture account.

- Cajun Music Hall of Fame & Museum (CFMA) account.

- KEEP Program account.

Recommendation:

The City should maintain control and record activity for all bank accounts associated with City's federal tax identification number.

Status:

This finding has been resolved, however, there are two additional accounts that need to be recorded. See current finding 09-02.

58


Schedule of Prior Year Findings and Quesfioned Costs (Confinued) Year Ended June 30, 2009

08-3 Utilitv Fund Receivables

Finding:

An Open Receivable Report which details the receivables for sewer and gas billings was not generated at year end and bad debts were not recorded at June 30, 2008. The bad debts should be recorded by management prior to generating this report at year end.

Recommendation:

This report should be produced with the end of year activity including any bad debts recognized.

Status: This finding has been resolved.

59


Schedule of Compensafion Paid to Members ofthe Council Year Ended June 30, 2009

Mayor, Robert A. Morris $ 28,410 I. Jackson Burson 13,700 Chawana Fontenot 7,120 DaleSoileau 7,120 Marguerite F. Simpson 6,230 Wallace J. Bourque, Jr. 7,120 Germaine Simpson 811

S 70.511

60

Documents

app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/3BA1D...Budgetary comparison schedules: General fund 38 Sales tax special revenue fund 39 OTHER SUPPLEMENTARY INFORMATION