Beauregard Parish Fire Protection District No. 1app1.lla.la.gov/PublicReports.nsf/15F8A0516948422F862578EE004F… · Fire Protection District No, 1 Notes to the Financial Statements

Fire Protection District No, 1 Beauregard Parish Police Jury

State of Louisiana

Annual Financial Statements Willi Auditor's Report

Decejnber31.20]0

Table of Contents

INDEPENDENT AUDITOR'S REPORT

BASIC FINANCIAL STATEMENTS; Statement of Net Assets Statement of Activities Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance Sheet

to Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Govemmental Funds

Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balance of Govemmental Funds to the Statement of Activities

Notes to the Financial Statements

Required Supplemental Information General Fund- Schedule of Revenues, Expenditures

and Changes in Fund Balances - Budget and Actual

Statement

-

A B C

Page(s)

1-2

4 5 6

D

E

Schedule

9

10-18

Page(s)

20

Other Supplemental Information Schedule of Compensation to Board Members 22

Other Reports Schedule of Prior Year Audit Findings Schedule of Current Year Audit Findings

and Management's Response

24

25

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 26-27

John A. Windham, CPA A Professional Corporation

1620 North Pine Street John A. Windham, CPA DeRidder, LA 70634 Tel: (337) 462-3211 Fax: (337) 462-0640

INDEPENDENT AUDITOR'S REPORT

Members ofthe Board of Commissioners Fire Protection Disfrict No. 1 Parish of Beauregard State of Louisiana

I have audited the accompanying financial statements ofthe governmental activities and each major fund of Fire Protection District No, 1, Parish of Beauregard, State of Louisiana, a component unit ofthe Beauregard Parish Police Jury, as of and for the year ended December 31, 2010, which collectively comprise the district's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Fire Protection District No. I's management. My responsibility is to express opinions on these financial statements based on my audit,

I conducted my audit in accordance with 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 of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial 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. I believe that my audit provides a reasonable basis for my opinions.

In my opinion, the financial statements referred to above present fairly, in all material respects, the respective fmancial position of the govemmental activities and each major fund of Fire Protection District No, 1, as of December 31, 2010, and the respective changes in financial position, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America,

In accordance with Govemment Auditing Standards, I have also issued my report dated March 30, 2011 on my consideration of Fire Protection Disfrict No. I's intemal control over financial reporting and my tests of its comphance with certain provisions of laws, regulations, confracts and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of intemal control over financial 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 assessing the results of my audit.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 20 be presented to supplement the basic financial statements. Such information, although not a part ofthe basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of

Members ofthe Board of Commissioners Fire Protection Disfrict No. 1 Parish of Beauregard State of Louisiana Page 2

preparing the information and comparing the information for consistency with management's responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit ofthe basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance.

Fire Protection Disfrict No. 1, has not presented management's discussion and analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not required to be part of, the basic financial statements.

My audit was conducted for the purpose of forming opinions on the fmancial statements that collectively comprise Fire Protection District No, I's fmancial statements as a whole. The schedule of per diem paid to board members, schedule of prior year audit findings, and schedule of current year audit findings and management's response are not a required part of the financial statements. The schedule of per diem paid to board members, schedule of prior year audit findings and schedule of current year audit findings and management's response, M"e the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit ofthe financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the fmancial statements or to the fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, In my opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

MiU. UUM^j cfff

DeRidder, Louisiana March 30, 2011

BASIC FINANCIAL STATEMENTS

Fire Protection Disfrict No. 1 Statement A

Statement of Net Assets December 31. 2010

Govemmental Activities

ASSETS Cash and cash equivalents $ 925,894 Receivables:

Ad valorem taxes 486,228 Prepaid insurance 7,419 Capital assets, net 1,010,641

Total assets $ 2,430.182

LIABILITIES Accounts payable $ 6,733 Salaries payable 4,240 Payroll taxes payable 1,866 Retirement payable 1,468 Pension payable - ad valorem tax 16,624 Accrued interest payable 8,425 Long term liabilities:

Due within one year 65,000 Due in more than one year 480,000

Total liabilities ~$ 584.356

NET ASSETS Invested in capital asset, net of related debt $ 465,641 Restricted for:

Debt service 108,417 Unrestricted 1,271.768

Total net assets $ 1,845.826

Total liabilities and net assets $ 2,430,182

The accompanying notes are an integral part of this statement, 4

Fire Protection Disfrict No. 1 Statement B

Statement of Activities For the Year Ended December 31,2010

Program Activities Govemmental activities:

Public safety Interest on long term debt

Total govemmental activities

Expenses

448,009 23.644

471.653

General revenues: Taxes;

Ad valorem taxes Insurance premium tax

Investment eamings Insurance proceeds Miscellaneous

Total general revenues Change in net assets

Net assets at beginning of year Net assets at end of year

$

$

Program Revenues

Charges for Ser\'ices

6,657

6,657

Net (Expenses) Revenues and Changes in Net Assets

Govemmental Activities

$ (441,352) (23,644)

$ (464,996)

483,598 24,482 21,240 12,463

1,758 543,541 78,545

1,767,281 1.845.826

The accompanying notes are an integral part ofthe statement, 5

Fire Protection Disfrict No. 1 Statement C

Balance Sheet Govemmental Funds December 31. 2010

Major Funds

ASSETS

Cash and cash equivalents Receivables:

Ad valorem Prepaid insurance

Total assets

General Fund

$ 896,017

396,184 7.419

$ 1,299,620

Debt Service Fimd

$ 29,877

90,044

$ 119,921

Total Govemmental Funds

$

$

925,894

486,228 7,419

1,419,541

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable Salaries payable Payroll taxes payable Retirement payable Pension payable - ad valorem tax

Total liabilities

Fund Balances: Reserved for debt service Unreser\'ed

Total fund balances

Total liabilities and fund balances

$

$

$

$

$

6,733 4,240 1,866 1,468

13,545 27,852

-1,271,768 1,271,768

1,299,620

$

$

$

$

$

----

3,079 3,079

116,842 -

116,842

119.921

$

$

$

$

$

6,733 4,240 1,866 1,468

16,624 30,931

116,842 1,271,768 1,388,610

1,419,541

The accompanying notes are an integral part of this statement.

Fire Protection Disfrict No. 1 Statement D

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

December 31. 2010

Total fund balance - total govemmental funds $ 1,388,610

Amounts reported for govemmental activities in the statement of net assets are different because:

Capital assets used in govemmental activities are not financial resources and therefore are not reported in the govemmental funds balance sheets, 1,010,641

Interest payable on long-term debt does not require current financial resources. Therefore interest payable is not reported as a liability in governmental funds balance sheet. (8,425)

Long-term liabilities including bonds payable are not due and payable in the current period and, therefore, are not reported in the govemmental fimds. Due within one year $ (65,000) Due in more than one year (480,000)

(545,000)

Net assets of govemmental activities $ 1,845,826


Fire Protection Disfrict No. 1 Statement E

Statement of Revenues, E^qjenditures and Changes in Fund Balances Govemmental Funds

For the Year Ended December 31, 2010

Revenues Taxes:

Ad valorem Insurance premium tax

Charges for services Investment income Miscellaneous

Total revenues

Expenditures Current operating:

Public safety Debt service:

Principal Interest

Capital outlay Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources: Insurance claim proceeds

Net change in fund balance

Fund balances at beginning of year

Fund balances at end of year

Major

General Fund

$ 394,073 24,482 6,657

20,922 1.758

Funds Debt Service

$

Fund

89,525 --318 -

Total Govemmental

Funds

$ 483,598 24,482

6,657 21.240

1.758 447,892 89,843 537.735

$

$

$

$

$

$

289,224

--

8,457 297,681

150,211

12,463

162,674

1,109,094

1,271,768

$

$

$

$

$

$

3,580

60,000 26,594

-90,174

(331)

(331)

117,173

116,842

$

$

$

$

$

$

292,804

60,000 26,594

8,457 387,855

149,880

12,463

162,343

1,226,267

1,388,610

The accompanying notes are an integral part of this statement.

Fire Protection Disfrict No. 1 Statement F

Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balaces of Governmental Funds

to the Statement of Activities For the Year Ended December 31, 2010

Net change in fund balances - total govemmental funds $ 162,343

Amounts reported for govemmental activities in the statement of activities are different because:

Govemmental funds report capital outlays as expenditures. However, in the govemment-wide statement of activities and changes in net assets, the cost of those assets is allocated over then estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period, 8,457

Repayment of bond principal is an expenditure in the govemmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the amount of bond repayments, 60,000

Depreciation expense on capital assets is reported in the govemment-wide statement of activities and changes in net assets, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in govemmental funds, (155,205)

Accrued interest on long term debt is not shown in the govemmental funds, 2,950

Change in net assets of governmental activities $ 78,545


NOTES TO THE FINANCL\L STATEMENTS

10

Fire Protection District No, 1

Notes to the Financial Statements As of and for the Year Ended December 31, 2010

INTRODUCTION

Fire Protection Disfrict No. 1 ofthe Parish of Beauregard, State of Louisiana was established through the adoption of a resolution. Ordinance No. 3-78, dated May 9, 1978, by the Beauregard Parish Police Jury, State of Louisiana. The district provides fire protection and safety for Wards One, Two and Five of Beauregard Parish, Louisiana. A board of five commissioners appointed by the Beauregard Parish Police Jury, State of Louisiana, governs the disfrict and are compensated for then services. Two employees handle the administrative and clerical duties ofthe district and the rest ofthe disfrict are volunteers. The accounting policies ofthe disfrict conform to generally accepted accounting principles as applicable to governments. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Statute 24:513 and to the guides set forth in the Louisiana Govemmental Audit Guide, and to the industry audit guide. Audits of State and Local Government Units.

GASB Statement No. 14, The Reporting Entity, established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. Under provisions of this Statement, Fire Protection District No, 1 is considered a component unit ofthe Beauregard Parish Police Jury. As a component unit, the accompanying financial statements are included within the reporting of the primary government, whether blended into those financial statements or separately reported as discrete component units.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Govemment-Wide and Fund Financial Statements

The government-wide financial statements (i.e,, the statement of net assets and the statement of changes in net assets) report information on all ofthe nonfiduciary activities ofthe disfrict. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requhements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for govemmental funds. Major individual govemmental funds are reported as separate columns in the funds financial statements.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when eamed and expenses are recorded when a liability is incurred, regardless ofthe timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met,

Govemmental fund fmancial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

11


Notes to the Financial Statements (Continued)

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues ofthe current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The disfrict reports the following major govemmental funds:

The General Fund is the district's primary operating fund. It accounts for all fmancial resources of the general govemment, except those required to be accounted for in another fund.

The Debt Service Fund accounts for transactions relating to resources retained and used for the payment of principal and interest on long-term obligations.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the govemment-wide financial statements to the extent that those standards do not conflict with or conttadict guidance ofthe Govemmental Accounting Standards Board.

As a general rule the effect of interfund activity has been eliminated from the govemment-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the governments enterprise operations. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

As a general rule the effect of interfimd activity has been eliminated from the govemment-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes.

Amounts reported as program revenues include 1) operating grants and confributions, and 2) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are available for use, it is the entity's policy to use restticted resources first, and then unrestricted resources, as they are needed,

C. Deposits and Investments

The disttict's cash and cash equivalents are considered to be cash on hand, demand deposits, time deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State law and the disfrict's investment policy allow the district to invest in collateralized certificates of deposits, govemment backed securities, commercial paper, the state sponsored investment pool, and mutual funds consisting solely of govemment backed securities.

D. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i,e., the current portion of interfund loans) or "advances to/from other funds" (i,e,, the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other fimds."

Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable govemmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

AU frade and property t^tes receivable are shown net of an allowance for collectibles.

The disfrict levies taxes on real and business personal property located within the boundaries ofthe district. Property taxes are levied by the disfrict on property values assessed by the Beauregard Parish Tax Assessor

12



and approved by the State of Louisiana Tax Commission, The Beauregard Parish Sheriff and Ex-Officio Tax Collector bills and collects property taxes for the district. Collections are remitted to the disfrict monthly. The district recognizes property tax revenues when levied.

Property Tax Calendar

Assessment date

Levy date

Tax bills mailed

Total taxes are due

Penalties & interest due

Lien date

Tax sale

January 1,2010

June 30, 2010

October 15, 2010

December 31, 2010

January 31, 2011

January 31,2011

May 15,2011

For the year ended December 31, 2010, taxes of 5.59 mills were levied on property with an assessed valuation totaling $89,414,558, and were dedicated as follows. Property taxes are levied on a calendar year basis and become due on January 1 each year. The following is a summary of authorized and levied ad valorem taxes;

Taxes due for: General maintenance Debt service

Authorized Millage

4,84 1.10

Levied Millage

4,84 1,10

Expiration Date

Renewed Annually Renewed Aimually

The following are the principal taxpayers and related property tax revenue for the district:

Taxpayer Type of Business

Assessed Valuation

% of Total Assessed Valuation 49.85%

Ad Valorem Tax Revenue for District

$ 264,753 Boise Packaging & Newsprint L.L,C Paper Products $ 44,571,367

E, Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

F. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The disfrict maintains a threshold level of $5,000 or more for capitalizing capital assets.

According to GASB 34 Fire Protection District No, 1 was not required to retroactively report infrastructure assets in its financial statements, therefore, these assets have not been reported in the financial statements.

The costs of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constmcted.

13



AU capital assets, other than land, are depreciated using the straight-line method over the following useful lives:

Description Estimated Lives Improvements 20-40 years Buildings 40-50 years Furniture and fixtures 5-15 years Vehicles 5-20 years Machinery and equipment 5-20 years

G. Compensated Absences

The disfrict does not allow and has no written policy relating to compensated absences.

H. Long-Term Obligations

In the govemment-wide fmancial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable govemmental activities, statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life ofthe bonds using the effective interest method. Bonds payable are reported net ofthe applicable bond premium or discount. Bond issuance costs axe reported as deferred charges and amortized over the term of the related debt.

In the fimd fmancial statements, govemmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period.

The face amoimt ofthe debt issued is reported as other fmancing soinces. Premiums received on debt issuances are reported as other fmancing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

I. Fund Equity

In the fund financial statements, govemmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally resfricted by outside parties for use for a specific purpose. Designations of fimd balance represent tentative management plans that are subject to change.

J. Extraordinary and Special Items

Exfraordinary items are fransactions or events that are both unusual in nature and infrequent in occurrence. Special items are fransactions or events within the conttol ofthe disfrict, which are either unusual in nature or infrequent in occurrence. The district had no exttaordinary or special items as of December 31, 2010,

K. Estimates

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

14



2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

BUDGET INFORMATION The distiict uses the following budget practices:

1. The secretary prepares a proposed budget and submits same to the Board of Commissioners no later than fifteen days prior to the beginning of each fiscal year,

2. The budget is adopted through passage of an ordinance prior to the commencement ofthe fiscal year for which the budget is being adopted,

3. Budgetary amendments involving the ttansfer of funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval ofthe Board of Commissioners,

4. All budgetary appropriations lapse at the end of each fiscal year

5. The budget for the General Fund is adopted on a basis consistent with generally accepted accounting principles (GAAP), Budgeted amounts are as originally adopted, or as amended from time to time by the Board of Commissioners, Such amendments were not material in relation to the original appropriations.

3. CASH AND CASH EQUIVALENTS

At December 31, 2010, the district has cash and cash equivalents (book balances) totaling $925,894 as follows:

Time deposits Interest bearing demand deposits Petty cash Passbook Savings

Total

$

$

662,944 19,856

200 242.894 925,894

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

At December 31, 2010, the disfrict has $895,817 in deposits (collected bank balances). These deposits are secured from risk by $895,817 of federal deposit insurance.

4. RECEIVABLES

The receivables of $486,228 at December 31, 2010, are as follows:

Debt Service Class of receivable General Fund Fund Total Taxes:

Ad valorem $ 396,184 $ 90.044 $ 486,228

15



5. CAPITAL ASSETS

Capital assets and depreciation activity as of and for the year ended December 31,2010, for the district is as follows:

Governmental activities: Capital assets, not being depreciated

Land

Capital assets being depreciated Buildings Improvements Machinery and equipment Furniture and fixtures Vehicles

Total capital assets being depreciated

Less accumulated depreciation for: Buildings Improvements Machinery and equipment Furniture and fixtures Vehicles

Total accumulated depreciation

Total capital assets being depreciated, net

Beginning Balance

$ 23,949

298,709 141,150

1,630,775 5,173

979,160 3,054,967

182,448 27,334

1,283,168 3,016

425,561 1,921,527

$ 1,133,440

Ending Increase Decrease Balance

$ - $

--

8,457 --

8.457

7,468 5,045

85,416 517

56,759 155.205

$ (146,748) $

$ 23,949

298,709 141,150

1,639,232 5,173

979.160 3,063,424

189,916 32,379

1,368,584 3,533

482.320 2,076,732

$ 986,692

Depreciation expense of $155,205 for the year ended December 31, 2010, was charged to the following govemmental functions:

Pubhc safety $ 155,205

6. ACCOUNTS, SALARIES, AND OTHER PAYABLES

The payables of $30,931 at December 31, 2010, are as follows:

Debt Service General Fimd Fund Total

Salaries Withholdings Retirement Accounts Pension

Total

$

$

4,240 1,866 1,468 6,733

13.545 27.852

$

$

----

3,079 3.079

$

$

4,240 1,866 1.468 6,733

16,624 30,931

16



LONG-TERM OBLIGATIONS

The following is a summary of the long-term obligation fransactions for the year ended December 31, 2010,

Bonded Debt

Long-term obligations at beginning of year

Additions Principal payments Long-term obligations

at end of year

605,000

(60,000)

545,000

The following is a summary ofthe current (due in one year or less) and the long-term (due in more than one year) portions of long-term obligations as of December 31, 2010;

Current portion Long-term portion

Total

Bonded Debt $ 65,000

480,000 $ 545.000

All disfrict bonds outstanding at December 31, 2010, for $545,000, are general obligation bonds with maturities from 2005 to 2017 and interest rates at 4,625% to 5,625%, Bond principal and interest payable in the next fiscal year are $65,000 and $23,703, respectively. The individual issue is as follows;

Original Bonds Issue

General Obligation Bond Series 2002 5/1/2002

Year Ending December 30, 2011 2012 2013 2014

2015-2017 Total

Final Interest to Interest Rate Payment Due Maturity

4.625% 3/1/2017

Principal Payments

$ 65,000 $ 70,000 75,000 80,000

255,000 $ 545,000 $

93,309

Interest Payments

23,703 20,581 17,228 13,644 18,153 93,309

$

$

Principal Outstanding

545,000

Total 88,703 90,581 92,228 93,644

273,153 638.309

Funding Source

Ad valorem taxes

In accordance with RS. 39:562, the disfrict is legally restricted from incurring long-term bonded debt in excess of 35% ofthe assessed value of taxable properly. At December 31, 2010, the statutory limit is $31,295,095 and outstanding bonded debt totals $545,000.

RETIREMENT SYSTEM

The Firefighters' Retirement System of Louisiana is a cost sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees. Pertinent information relative to the plan follows:

17


Notes to the Financial Statements (Concluded)

Plan Description

Membership in the Louisiana Firefighters' Retirement System is mandatory for all full-time firefighters employed by a municipality, parish, or fire protection district that did not enact an ordinance before January 1, 1980, exempting itself from participation in the System, Employees are eligible to retire at or after age 55 with at least 12 years of creditable service or at or after age 50 with at least 20 years of creditable service. Upon retirement, members are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3 percent of their final-average salary for each year of creditable service, not to exceed 100 percent of their final-average salary. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least 12 years of service and do not withdraw their employee contributions may retire at or after age 55 (or at or after age 50 with at least 20 years of creditable ser\'ice at termination) and receive the benefit accrued to their date of termination. The System also provides death and disability benefits. Benefits are established or amended by state statute.

The System issues an annual publicly available fmancial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Firefighters' Retu-ement System, PO Box 94095, Baton Rouge, LA, 70804, or by calling (225) 925-4060.

Funding Policy

Plan members are required by state statute to conttibute 8,0 percent of their annual covered salary and the disttict is required to contribute at an actuarially determined rate. The current rate is 21.5 percent of annual covered payroll. The conttibution requhements of plan members and the disttict are established and may be amended by state statute. As provided by Louisiana Revised Statute 11:103, the employer conttibutions are determined by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. The district's contributions to the System for the years ending December 31, 2010, 2009 and 2008were $10,601, $7,577, and $7,160, respectively equal to the required conttibutions for each year.

9. RESERVED FUND BALANCE

Assets Cash Ad valorem tax receivable

Total assets

Less: Liabilities

Pension plan - ad valorem tax

Reserved Fund Balance

$

$

$

$

29,877 90.044

119.921

(3,079)

116,842

18

REQUIRED SUPPLEMENTAL INFORMATION

19

Fire Protection Disfrict No. 1 Schedule 1

General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances

Budget and Acttial For the Year Ended December 31, 2010

Revenues Taxes:

Ad valorem Insurance premium tax

Charges for services Investment income Other revenue

Total revenues

Expenditures Current operating:

Public safety Capital outlay

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources: Insurance proceeds

Net change in fimd balance

Fund balances at beginning of year

Fund balances at end of year

$

$

Budgeted Amounts Original

325,000 24,500

-20,000

3.000

372,500

$

$

Final

396,184 24,482 6,657

23,000 5.260

455,583

Actual Amount Budgetary Basis

$ 394,073

$

24,482 6,657

20,922 1,758

447,892

Budget to GAAP differences over

(under)

$

$

(2,111) --

(2,078) (3,502)

(7,691)

Actual Amount GAAP Basis

$ 394,073 24,482 6,657

20,922 1,758

$ 447,892

270,800 $ 291,865 50.000 8.457

12,463

1,154,700 $ 1,276,81!

289,224 $ 8,457

320,800 $ 300,322 $ 297.681

12,463

1,271,768 $

2.641

2.641

(5,050)

289,224 8.457

297,681

51,700 $ 155,261 $ 150,211 _$ (5,050) $ 150,211

12,463

51,700

1,103,000

$ 167,724

1,109,094

$ 162,674

1,109,094

$ (5,050)

_

$ 162,674

1,109,094

1.271.768

20

OTHER SUPPLEMENTAL INFORMATION

21


Schedule of Compensation of Board Members December 31. 2010

Travis Brooks Bill Magel Gerald Spears Marvin Whiddon Mickey Whitaker

Number of Meetings

12 12 12 12 12

Amount of Per Diem

$ 30 30 30 30 30

$

$

Total

360 360 360 360 360

1,800

22

OTHER REPORTS

23


Schedule of Prior Year Audit Findings Year Ended December 31. 2010

There were no prior year audit findings for the year ended December 31, 2009.

24


Schedule of Current Year Audit Findings and Management's Response Year Ended December 31. 2010

There were no current year audit findings for the year ended December 31, 2010.

25

John A. Windham, CPA A Professional Corporation

1620 North Pine Street John A. Windham, CPA DeRidder, LA 70634 Tel: (337) 462-3211 Fax: (337) 462-0640

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTIIER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Members ofthe Board of Commissioners The Protection Disttict No. 1 Parish of Beauregard State of Louisiana

I have audited the accompanying financial statements ofthe governmental activities and each major fund of Fire Protection District No, 1, Parish of Beauregard, State of Louisiana, as of and for the year ended December 31, 2010, which collectively comprises Fhe Protection District No. I's, basic financial statements and have issued my report thereon dated March 30, 2011, I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Intemal Control Over Financial Reporting

In planning and performing my audit, I considered Fire Protection Disfrict No, I's intemal conttol over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Fhe Protection District No. I's internal conttol over financial reporting. Accordingly, I do not express an opinion on the effectiveness of Fhe Protection Disttict No. 1 's intemal control over financial reporting,

A deficiency in internal control exists when the design or operation of a conttol does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.

My consideration of internal confrol over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. I did not identify any deficiencies in intemal conttol over financial reporting that I consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Fhe Protection District No, I's, financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grant

26

Members ofthe Board of Commissioners Fhe Protection Disttict No. 1 Parish of Beauregard State of Louisiana Page 2

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 my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

This report is intended solely for the information and use of management, others within the organization, the Board of Commissioners, and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties, although under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

1̂ . IcUA^̂ Cp̂

DeRidder, Louisiaia March 30. 2011

27

Documents

Beauregard Parish Fire Protection District No. 1app1.lla.la.gov/PublicReports.nsf/15F8A0516948422F862578EE004F… · Fire Protection District No, 1 Notes to the Financial Statements